Medicare levy and surcharge
Medicare levy thresholds
1 July 2018 – 30 June 2019
Medicare levy is based on taxable income (excluding the taxable component of a superannuation lump sum taxed at 0%). Individuals with taxable income above the upper threshold for singles may be eligible for a Medicare Levy reduction based on family income where they have a spouse or dependent children. The rates and thresholds below are applicable in 2018/19. Thresholds for the current year (ie 2019/20) are typically not released until the following year’s Federal Budget.
Singles | Families (combined income) | Medicare levy rate |
Up to $22,398 | Up to $37,7943 | Nil |
$22,399 – $27,997 | $37,7953 – $47,2424 | 10% of taxable income between thresholds |
Above $27,997 | Above $47,2424 | 2% of taxable income |
Eligible for Seniors and Pensioners Tax Offset | Medicare levy rate | |
Up to $35,418 | Up to $49,3043 | Nil |
$35,419 – $44,272 | $49,3053 – $61,6304 | 10% of taxable income between thresholds |
Above $44,272 | Above $61,6304 | 2% of taxable income |
Medicare levy surcharge
1 July 2019 – 30 June 2020
Medicare levy surcharge may apply to singles and couples who do not have adequate private health cover.
Income for surcharge purposes (refer to page 91) is used to determine liability for Medicare levy surcharge. The amount of surcharge payable is calculated on taxable income (excluding assessable income from the taxable component of a superannuation lump sum where the tax rate is 0%) plus reportable fringe benefits total.
Income thresholds are typically indexed on 1 July with AWOTE. However, indexation is paused until 30 June 2021.
Singles | Families (combined income) | Medicare levy surcharge |
Up to $90,000 | Up to $180,000 | Nil |
$90,001 – $105,000 | $180,001 – $210,000 | 1.00% |
$105,001 – $140,000 | $210,001 – $280,000 | 1.25% |
Above $140,000 | Above $280,000 | 1.50% |
The family thresholds increase by $1,500 for each dependent child after the first.
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