If you are a temporary resident from overseas living and working in Australia, you may be exempt from the Medicare Levy. This is the tax surcharge on medium and high income earners that funds the scheme providing all Australian residents with health care.
If you are an Australian resident, you are exempt from the Levy if your income falls below the surcharge threshold (now $84,000 for singles), or if you have taken out private hospital cover.
Changes to the Medicare Levy for FY 2012/13
From 1 July 2012, the Medicare Levy Surcharge increased for some higher income earners. It now starts at 1% of total taxable income for:
Singles earning $84,001 or more
Families earning $168,001 or more
You might not be eligible for an exemption if:
you hold (or have applied for) an Australian permanent resident visa
were a resident of New Zealand, the UK, Ireland, Italy, Sweden, the Netherlands, Finland, Malta, Belgium, Slovenia or Norway before entering Australia
maintain a dependent or other who qualifies for Medicare
are an Australian citizen having resided abroad for under five years
For those who are entitled to it SETA Accounting Tax can assist you with obtaining the Medicare Levy Exemption. For a family earning above $194000 a year, an exemption can save them around $2500 or more annually.
Additionally, if you qualify for a foreign income tax offset, you may be eligible for a levy reduction if there is any offset remaining after it has been applied against your payable tax.
Whether you’re a business owner, contractor, tradesperson or property investor, SETA Accounting can guide you on a wide range of tax and accounting issues concerning health rebates, health insurance and more. Talk to us today and let us help you navigate the road ahead!
Take advantage of our small business accounting services during which we will help you to refine your needs and consider an accounting and tax planning solution for your business going forward… make an online enquiry today or call us on 0424 231 201 and let us help you solve your accounting or tax problems.