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30 June 2020

Medicare Levy

Australian residents for tax purposes are subject to a Medicare levy of 2% of their taxable income unless they qualify for a reduction or  Medicare Levy Exemption Certificate.

Medicare levy thresholds for individuals excluding those eligible for pensioners tax and senior Australian offsets are as follows:


< $23,226                        Nil

> $29,033                        2%

In between formula e.g. Single income of $23,000 = (26,000-23,226) x 10% = $277.40


Sole parents and families

Lower Limit < $39,167 plus $4,496 for each dependant child                   Nil

Upper Limit > $48,958 plus $4,496 for each dependant child                    2%


Individuals Eligible for SAPTO

Lower Limit < $36,705  plus $4,496 for each dependant child                 Nil

Upper Limit > $45,881   plus $4,496 for each dependant child                 2%


Families who qualify for SAPTO

< $63,867 plus $4,496 for each dependant child                                        Nil


Government Health Insurance Rebate

Adjusted Taxable Income

Assessable taxable income less deductions
Plus net investment losses e.g. rental properties
Plus reportable fringe benefits (grossed up)
Plus tax free benefits or pension
Less child support paid
Plus reportable superannuation contributions
Plus all foreign income

Single adjusted taxable income                    < $ 90,000         $  90,001 - $  105,000    $  105,001 - $140,000    > $140,001

Family adjusted taxable income                   < $180,000         $180,001 - $  210,000    $ 210,001 - $280,000    > $280,001

Plus $1,500 for each dependant child after the first.

Government Health Insurance Rebate:

1 April 2016 to 1 April 2017


< 65                                                                        27.82%                   18.55%                         9.27%                        Nil

65 - 69                                                                    32.46%                   23.18%                         13.91%                      Nil

> 70                                                                        37.09%                   27.82%                        18.55%                       Nil

1 April 2015 to 1 April 2016


< 65                                                                        26.79%                   17.86%                         8.93%                        Nil

65 - 69                                                                    31.26%                   22.33%                       13.40%                        Nil

> 70                                                                        35.72%                   26.79%                        17.86%                       Nil

Medicare levy surcharge:

No private hospital health insurance:                 Nil                           1.0%                             1.25%                      1.5%



Medicare Levy Exemption Certificate


You do not hold an Australian permanent resident visa and have not applied for one.

You do not reside in a country that has a reciprocal health care agreement:

These countries have agreements with Australia:

UK, Northern Ireland, Italy, Malta, Sweden, the Netherlands, Finland, Belgium or Slovenia

You are an Australian citizen residing overseas for 5 years or more

You are a New Zealand citizen that has been residing in Australia for less than 6 months.

Download the Medicare levy exemption certificate application



The information provided in the above documents is not intended to be, nor should it be construed as tax advice. Any specific recommendation for a client can only be done after their individual circumstances have been determined by David Douglas Accountants.

We have clients from the following locations:

Brisbane, Gold Coast, Sydney, Newcastle, Sunshine Coast, Cairns, Canberra, Melbourne, Adelaide, Perth, Darwin.


Brisbane, Albion, New Farm, Teneriffe, Newstead, Windsor, Wilston, Bowen Hills, Wooloowin, Herston, Lutwyche, Hamilton, Eagle Farm, Gordon Park, Fortitude Valley, Clayfield, Ascot, Hendra.

Morayfield, Burpengary, Caboolture, Bellmere, Wamuran, Narangba, North Lakes, Mango Hill, Kallangur, Dakabin, Deception Bay, Bribie Island, Elimbah, Kippa-Ring.

We do tax returns for individuals, trusts, companies, partnerships, contractors, ABNs and sole traders.

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