The Medicare levy and Medicare Levy Surcharge

The Medicare levy helps fund some of the costs of Australia’s public health system – Medicare.

The levy is collected from individuals in the same way as income tax. Generally, your employer takes the levy from your salary or wages at the rate of 2% of your taxable income for the pay period.

Then the total Medicare levy is calculated for the year when you lodge your tax return.

The Medicare levy surcharge is an amount you pay on top of the Medicare levy. You pay the surcharge if both you, your spouse and your dependent children do not have an appropriate level of private patient hospital cover and earn above a certain income. This is one reason as to why your relationship status is included within your tax return.

The surcharge is not charged for periods that you, your spouse and any dependent children are covered by an appropriate level of private patient hospital cover.

If you have any questions regards to the Medicare Levy or your Income Tax Return, don’t hesitate to get in contact with us at STS Accounting.