General
5 min read

What is the Medicare levy and how does it affect my tax return?

Written by
Published on
January 11, 2024

The Medicare levy helps fund part of the costs of the Australian public health system known as Medicare. This tax corresponds to 2% of your taxable income, in addition to the tax you pay on your taxable income.

It's possible to obtain a reduction or exemption from paying the Medicare levy, depending on your circumstances and those of your spouse. You should consider separately your right to a reduction or exemption.

The Medicare levyis collected in the same way as income tax. Generally, the amount your employer withholds from your salary or wages includes an amount to cover the Medicarelevy. The ATO calculates the Medicare levy payable when you lodge your tax return.

How to apply for a Medicare exemption certificate:

To obtain a Medicare Entitlement Statement (MES), there are two application methods: online application through myGov or completion of a form.

Apply Online:

1. Through MES Dashboard:

- Use the Medicare Entitlement Statement (MES) dashboard in the Individual Healthcare Identifiers service via myGov.

- Sign in to myGov, create or link your Individual Healthcare Identifier (IHI) service.

- You can track your application's progress,upload necessary documents, and download/print your statements.

- Opt for receiving messages in your myGov Inbox for updates in the MES dashboard.

 

2. Through myGov Account:

- Sign in to myGov and apply directly through your account.

Apply with a Form:

- Download and complete the MES application form either digitally or by hand.

Application by Tax Agent:

- Your tax agent can complete the form, but you must provide the declaration. Instructions forthe tax agent's submission are on the form.

Provide Supporting Documents:

- You may need to submit a copy of your passport's name and photo page for identity verification.

- Additional documents may include your current visa, letters from the Department of Home Affairs regarding your permanent residency application, or proof of appeal.

- If from specific countries, provide proof of health insurance with an expiry date.

Document Submission Guidelines:

- Ensure clarity,visibility of all information in the documents.

- Accepted formats: PDF, JPG, PNG, GIF, or BMP, with each file being less than 5MB and thetotal upload size less than 10MB.

- PDFs should not be password protected.

Before proceeding, understand the use of your personal information by consenting to the privacy notice.

For more information go to How to get aMedicare Entitlement Statement (MES)

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