Many people are confused and do not know what medicare is and why this insurance is charged in the tax return, so we are going to explain to you what medicare is, and on what occasions you can be exempt from this payment.
Let’s begin, Medicare is Australia’s universal health insurance scheme. It guarantees all Australians access to a wide range of health and hospital services at low or no cost.
Medicare is partly funded by taxpayers who pay a Medicare Levy of 2.0% of their taxable income, that is why the Medicare levy is collected from Australians in the same way as income tax. The actual Medicare levy is calculated by the Australia Taxation office when people lodge their income tax return.
But, when can I apply for a Medicare levy exemption?
It is important that people know that they can apply for a Medicare levy exemption if they were in of the 3 following exemption categories at any time in the financial year:
- You meet certain Medicare requirements, such as:
- You were a blind pensioner
- You received sickness allowance from Centrelink
- You were entitled to full free medical treatment for all conditions under Defence Force arrangements or Veterans Affairs Repatriation Health card.
- You were a foreign resident for tax purposes during the full year
- You are not entitled to Medicare benefits.
In case that you have any dependents, you need to consider their circumstances as well, in order to determine if you qualify for an exemption. If you qualify for a Medicare levy exemption, you can claim the exemption through your tax return.
If you want to get your tax return done, or if you want to know if you qualify for Medicare levy exemption contact us: www.ysaccounting.com.au or firstname.lastname@example.org we will be more than happy to help you