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What is the Medicare Levy Exemption?

Every Australian resident has to pay a Medicare levy that amounts to 1.5% of their taxable income. However, it is possible to qualify for a reduction or exemption.

First of all, if you are a nonresident for tax purposes, you do not need to pay the Medicare levy.

If you are an Australian resident, you may be able to pay a reduced Medicare levy if your income is between $18,839 and $22,163. Slightly higher thresholds apply to taxpayers who qualify for the senior Australians tax offset and the pensioner tax offset.

If your taxable income is equal to or less than the lower threshold amount ($18,839) you may be exempt from the Medicare levy entirely.