The Medicare Levy is a tax in Australia that helps fund the country’s public healthcare system, Medicare. Here’s how it is charged:

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💰 How It’s Charged

• The Medicare Levy is 2% of your taxable income.
• It is automatically withheld from your salary by your employer (just like income tax).
• You will see the exact amount calculated when you lodge your annual tax return with the Australian Taxation Office (ATO).

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🧾 Who Has to Pay It?

• Most Australian residents who earn over a certain threshold must pay it.
• In 2023–24, the income thresholds are approximately:
  • Individuals: No levy if income is below $24,276.
  • Families: Higher thresholds depending on the number of dependent children and income.

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✅ Exemptions and Reductions

You may not have to pay the full 2% if:

• Your income is below the threshold.
• You qualify for an exemption, such as:
  • You’re a foreign resident.
  • You’re not entitled to Medicare benefits (must apply for exemption).
• You may pay a reduced levy if your income is above the threshold but still considered low-income.

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💡 Example

If your taxable income is $80,000, your Medicare Levy would be:

bashCopyEdit$80,000 × 2% = $1,600

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Let me know if you’d like details on the Medicare Levy Surcharge (MLS), which is a separate charge for high-income earners without private health insurance.