The Medicare levy is a 2% tax on your taxable Income – Most Australians pay this levy. The Government uses this money to help fund the Public Health System and each time you visit your local GP and you’re bulk billed, the Government pays the GP from the money collected via the Medicare Levy. If you’re a low-income earner, earning less than $22,398 this tax year then you won’t have to pay the 2% Medicare levy – which is great news for you.
And If your family income is less than $37,794 this tax year then you won’t have to pay the 2% Medicare levy – that is good news, free healthcare. For families, the news gets even better, for each dependent child the family income threshold increases by $3,471. If you and your partner have three dependent children then you won’t be charged the 2% Medicare Levy if your family income is less than $48,207.
Contact Tax Warehouse to make sure you are not paying too much when it comes to the Medicare Levy.