TAX Question concerning Medicare - need to know others experiences

[subaruforestermum]

Ok, so we have never had to pay the Medicare levy or surcharge, but when we done my tax, I didnt have to do it, but when they done DP's it says that he HAS to pay $700.98, is this right??????

We are both on each others return, he is going for a second opinion (if he will ever get a chance)....

Anyone else have this problem.....we earn UNDER the $100,000 they say you have to earn tbefore you have to pay it. Or whatever that limit is, so we should be in the exempt category, but its just not happening...I tried to do it myself online too, and the same thing happened....

[DivinelySophistimicated]

Im not sure hun....

What I do know is that Dp had to pay $2,600!!!

[cromeo]

You always have to pay 1.5% of your taxable income, unless you are on a low income.

You pay an additional levy if you earn over $100k. You can get exempted from this if you have private health insurance.

i will pm you with more info

[subaruforestermum]

thanks for that cromeo....very much appreciate it when you get a chance...

It just didnt make sense, cos I had his income on my tax return and didnt have to pay it, but he had the same info on his but he has to pay $$$ it just doesnt make sense as to why....

Thanks ladies

[missie_mack]

Is he the higher income earner?

[SimplyMum]

The threshold is $100,000 for a couple and $1500 for each consecutive cihld after 1! So for a family of 1 Mum, 1 Dad and 3 kiddies without private health insurance, the threshold is $103,000.

If one of the income earners earn under the medicare threshold (I think it's $16,284) than they don't get charged the medicare levy surcharge. Hope this helps. If you have anymore Q- just PM me.

[subaruforestermum]

The threshold is $100,000 for a couple and $1500 for each consecutive cihld after 1! So for a family of 1 Mum, 1 Dad and 3 kiddies without private health insurance, the threshold is $103,000.

If one of the income earners earn under the medicare threshold (I think it's $16,284) than they don't get charged the medicare levy surcharge. Hope this helps. If you have anymore Q- just PM me.

This is what I thought too.....but last year DP only earnt $47000 and with my income it brought it up to over $50000! So I dont understand still.......why are they trying to charge us!!!!! Back to square one....

Thanks for trying to help with my queries ladies!

[tally]

Yes that would be right.

The medicare levy is seperate to the medicare surcharge and has nothing to do with double incomes.

It is solely based on the individuals income and if an accoutant has done your tax for you its worked out automatically and they personally cant make an error unless they are doing it manually and I dont know of any accountant in Australia who is on a manual system..

this should explain it better for you..

http://www.ato.gov.au/individuals/content.asp?doc=/content/17482.htm

hth

[subaruforestermum]

Yes that would be right.

The medicare levy is seperate to the medicare surcharge and has nothing to do with double incomes.

It is solely based on the individuals income and if an accoutant has done your tax for you its worked out automatically and they personally cant make an error unless they are doing it manually and I dont know of any accountant in Australia who is on a manual system..

this should explain it better for you..

http://www.ato.gov.au/individuals/content.asp?doc=/content/17482.htm

hth

It was a guy at the shops, and he only used his calculator while we were there, so I'm pretty sure he must have worked it out manually!

thanks will take a look

[tally]

doesnt matter the figure sounds about right anyway.. the ATO.. should automatically work it out anyway once the return is lodged so any discrepancies will be picked up then.

[TwoBoysOnly]

As a previous poster has said everyone that earns over $16,000 (approx) has to pay a medicare levy. It is 1.5% of your income. Therefore if your husband earned over $16,000 he would have to pay 1.5% of his earnings in a medicare levy shown on the tax return. If you earned under $16,000 you don't have to. If then combined you earn over $100,000 then you have to pay ANOTHER 1% if you don't have private health insurance. Any questions???