Medicare Levy Question

[Miaow]

Hi everyone,

Just looking at my tax (etax) and Im sorta confused. With the medicare exemption/reduction in levy area. I have a dependant for part of the year (from 15/11/05) so it takes me to a page that has private health details (i dont have private cover) and asks for the amount of days you are not liable for the levy.

Im confused here cause as we dont come into an exemption catergory does it mean with no private cover I'm liable for the whole year - i think this would be the case?

Sorry if this is a strange Q but this is the 1st time I've had to answer this question with a dependant also you have to realise that I'm a blonde (Joke since i know this is not a good excuse :laughing:)

Thanks.

[~Emmylou~]

Yeah unless you had private health cover for the full year, you are liable for the medicare levy for 365 days.

[chicken]

The Meciare levy only applies to people earning over $50k or households over $100k (I think, ulness this has changed). Its basically a way to get high income earners to take up private health insurance. So if you earn over $50k, it makes sense to take out private health cover because they'll take 1% of whatever you earn as a levy anyway. So if you earn $80k and you have no private health cover, they'll take $800 back as a surcharge, on top of the normal 1.5% lMedicare evy that everyone pays. So its probably cheaper to have private health insurance - that's why I have it!

[Miaow]

Thanks for the Answers:)

Chicken i think you're talking more of the surcharge with the 50k on it not sure though there - i think the threshold on the levy is a lot lower.

Emmylou, Yeah i was thinking it was 365 day liable but wasnt really sure lol