PLEASE NOTE YOU NEED TO CHECK IF CLIENT HAVE SPOUSE - IF SPOUSE OF CLIENT IS AUS RESDIENT/ PR OR ENTITLE TO MEDICARE THEN THEN CHECK AGAIN WITH SENIOR STAFF


SITUATION IS DIFFERENT DEPENDING IF YOU ARE DEFENCE FORCE OR TEMPORARY RESIDENT


TABLE OF CONTENTS



20240712 Chris

Medicare levy

If you are a member of the permanent forces, or a reservist on continuous full-time service (CFTS), generally you do not pay the Medicare levy and may not need private health insurance, as Defence covers all your medical needs. However if you have a partner and/or family they may want private health insurance to cover medical costs not covered by Medicare.

1. Members may be entitled to a full or half Medicare levy exemption.
2. Members who were entitled to a Medicare levy exemption for only part of the year will have the levy exemption applied on a proportional basis.
5. Department of Veterans' Affairs Repatriation Health Card (Gold Card) holders are entitled to a full Medicare levy exemption if they meet the conditions described for a member in ‘Conditions and their applied Medicare Levy exemption’ of the following webpage: 

8. A member is deemed to have had private patient hospital cover for Medicare levy surcharge purposes by virtue of their entitlement to full free medical treatment. Therefore, if the member had no dependants, the member is not required to have private patient hospital cover and will not be liable for the Medicare levy surcharge.


https://pay-conditions.defence.gov.au/pacman/tax-alerts/div-4

https://wealthvisory.com.au/defence-force-tax-deductions-for-2021-the-ultimate-guide/





Here are the conditions that should be met to access the full exemption:
  • You are free from dependents. Dependents are defined as spouses (de facto included) and children under 16 years old. It also covers children under 25 who are studying full-time and have an independent net income of less than $1,786.
  • You have a dependent spouse who is also an ADF member and is also entitled to free medical treatment.
  • You have dependents, and they are required to pay the Medicare levy using their separate income.
  • You have a spouse who must pay the Medicare levy and pays for your dependents’ Medicare levy.
  • You have a spouse who is liable to pay the Medicare levy, and the spouse contributes to the maintenance of the dependent.
If you do not meet any of the above conditions but are still an ADF member for the whole of the relevant financial year, you can be exempted from half of the Medicare levy.
Unless you are single and received full free medical care, have full private health insurance or fall below the income threshold, you will still need to pay the Medicare Levy Surcharge.

https://wealthvisory.com.au/defence-force-tax-deductions-for-2021-the-ultimate-guide/

 


Medicare levy surcharge

As an ADF serving member, you would have been exempt from paying the levy if you were single
or only paid 1% if you had a family. Although as an ADF member you may not require health insurance, if your combined family income is above $194,001, your family will need to take out private hospital cover to avoid MLS.

https://navyhealth.com.au/knowledge-base-articles/medicare-levy/
















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FOR MEDICARE LEVY 

  • https://www.ato.gov.au/Individuals/Medicare-levy/Medicare-levy-exemption/Category-1--Medical-exemption-from-Medicare-levy/
  • Army soldiers navy airforce are exempt from medicare levy if the defense force provides them free health check.
  • Make sure they are EXEMPT from medicare



FOR MEDICARE LEVY SURCHARGE

in general if client is exempt from medicare levy due to: 

  • temporary visa - not entitle to medicare
  • ADF 

then client will be exempt from emdicare levy surcharge


MEDICARE LEVY ACT 1986 - SECT 8B

Levy surcharge--person without dependants who is not married during whole or part of a financial year

 (1)  This section applies to a person during a period if during the whole of the period:

(a)  the person is not a married person; and

 (b)  the person does not have any dependants; and

 (c)  the person is not covered by an insurance policy that provides private patient hospital cover; and

 (d)  the person is not a prescribed person.

Note 1:  Subsection   251R(2) of the Assessment Act treats certain persons who are not married as if they were married.

Note 2:  For dependant see sections   251R and 251V of the Assessment Act.

Note 3:  For prescribed person see section   251U of the Assessment Act.


 (2)  If the person's income for surcharge purposes exceeds the person's singles tier 1 threshold for the year of income, the amount of the levy that, apart from this section, would have been payable by the person under this Act for the year of income is to be increased:

(a)  if this section applies to the person for the whole of the year of income--by 1% of the person's taxable income; or

 (b)  if this section applies to the person for only some of the days in the year of income--by the amount worked out using the formula:

  

 (3)  Increase the amount of each percentage mentioned in subsection   (2) by 0.25 of a percentage point if the person is a tier 2 earner for the year of income.


 (4)  Increase the amount of each percentage mentioned in subsection   (2) by 0.5 of a percentage point if the person is a tier 3 earner for the year of income.


MEDICARE LEVY ACT 1986 - SECT 8B Levy surcharge--person without dependants who is not married during whole or part of a financial year (austlii.edu.au)



this is from tax law ạ

so they are liable for surcharge if they sati

but if he is adf then he not satisfy (1) cause he is a prescribed person a


prescribed person include



how to put on green xero 

BORA BASKAR EXAMPLE







(1)  This section applies to a person during a period if during the whole of the period:

 (a)  the person is a married person; and

 (b)  the person or at least one of the person's dependants (other than a dependant who is, or would, apart from subsection   251U(2) of the Assessment Act, be taken to be, a prescribed person) is not covered by an insurance policy that provides private patient hospital cover; and

 (c)  the person is not, or is taken under section   251VA of the Assessment Act not to be, a prescribed person.

Note 1:  Subsection   251R(2) of the Assessment Act treats certain persons who are not married as if they were married.

Note 2:  For dependant see sections   251R and 251V of the Assessment Act.

Note 3:  For prescribed person see section   251U of the Assessment Act.