What is the Medicare Levy in Australia?

The Medicare Levy is a tax that is imposed by the Australian government to fund the country's public healthcare system, known as Medicare.

Medicare is calculated as a percentage of your taxable income and is deducted from your wages each pay period in the same way as the taxes that are deducted.

For the financial year 2021-22, the Medicare Levy is set at 2% of taxable income, some taxpayers may be eligible for a reduced rate or exemption.  The scales are automatically calculated through the Gotax online site.

The money withheld through the Medicare Levy are used to provide a range of healthcare services, including hospital treatment, medical consultations, and prescription medicines.

It's important to note that the Medicare Levy is separate from the Medicare Levy Surcharge, which applies to certain high-income earners who do not have private health insurance.

Find out what your medicare liability is, start your Income Tax Return now... gotax.com.au