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What is the Medicare levy?

The Medicare levy is an amount you pay in addition to the tax you pay on your taxable income.  The levy is 2% of your taxable income and it helps fund some of the costs of Australia’s public health system known as Medicare.

A reduction or exemption from paying a Medicare levy may apply, depending on you or your spouse’s income and circumstances.

Medicare levy is calculated when your tax return is lodged.  Generally, the pay as you go amount your employer withholds from your salary or wages includes an amount to cover the Medicare levy.

You can use the Medicare levy calculator to work out your Medicare levy.

Contact our office for further assistance on 03 9848 5933.

Source: What is the Medicare levy? | Australian Taxation Office (

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