Things you need to know about Medicare

Australian residents are subject to a Medicare levy of 2.0% of their taxable income unless they qualify for a reduction or exemption.

A Medicare levy reduction is based on your taxable income. In some cases, you may not have to pay the levy at all. If your taxable income is above the thresholds, you may still qualify for a reduction based on your family income.

A Medicare levy exemption may apply if you meet one of the following exemption categories:

• You meet certain medical requirements.

• You are a foreign resident.

• You were not entitled to Medicare benefits.

If you were not an Australian resident for tax purposes for the whole of 2021–22, you may be exempt from the Medicare levy. 

The ATO provides more detail regarding Medicare. For more information simply ask me at paul@congdonfuzi.com.au