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Medicare Levy

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    Hi all,

     

    Just been on the ATO Website and been reading up about the medicare levy AND the separate medicare levy surcharge, now am right in thinking that everyone pays the basic medicare levy now 2% of your taxable income over the thresholds? know the medi care surcharge thresholds is quite high for families (160 ish k) but the basic medicare levy thresholds are alot lower around 38 k for families plus 3k ish per dependant child, so if i am reading this right anything earnt over the threshold for the basic levy we pay 2% on top... if anyone with more knowledge of this could help my confused brain be most appreciated :-) :-)

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    Guest Guest12727

    I am no expert but I think

    - Currently medicare levy is 1.5% and starts to kick in at around $20k (+$3k per dependant) family income. The figure of around $36k is for seniors / pensioners. (This will be going up to 2% to fund the disability insurance scheme, when???)

    - Currently, in general, you only pay the surcharge (MLS) if you do not have private health insurance. The MLS seems to be an extra 1% - can some-one confirm please?

     

    The rules around MLS are changing as of 1 July with income means testing coming into the equation as well.

     

    This link may be of more help than the one you were looking at that I also found very confusing. http://www.ato.gov.au/individuals/pathway.aspx?pc=001/002/030

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