Medicare levy surcharge 2020

If you don’t have private hospital cover and your income is above income threshold , you may need to pay medicare levy surcharge(MLS).

In some cases, if you have private health insurance cover and , tax payer won’t to pay Medicare levy surcharge, it’s depending on your income, you may be eligible for private health insurance rebates. This rebate is an amount the government contributes for  the cost of your private health insurance premiums for tax payer.

You may get exemption for part or full year but you need to provide information in your tax return.

Depending on your situation, the Medicare levy, the MLS or taxpayers  private health insurance rebates may impact the refund which is received from ATO or the tax you owe.

For more information on online tax return 2020, Tax Return 2020, myGov 2020, myTax 2020 or any other tax related matter, please call our professional accountant on 1300 768 284 or you can email us at enquiry@taxrefundonspot.com.au

Medicare levy 2020

The costs of Australia’s public health system known as Medicare have been helped by the medicare Levy. 

Taxpayer need to pay 2% on your assessable income as medicare levy.

You may entitled to get a reduction or exemption from paying the Medicare levy on your income but it’s depending on your and your spouse’s circumstances and eligibility criteria.

 You need to consider your eligibility for a reduction or an exemption separately or you can contact to Tax agent for further help.

ATO collected tax from your income is the same as collecting your medical levy. 

Generally, In your PAYG summary your employer withholds the amount from your assessable income for medical levy as well. You need to keep in mind your actual amount on medical levy calculated by ATO.

For more information on online tax return 2020, Tax Return 2020, myGov 2020, myTax 2020 or any other tax related matter, please call our professional accountant on 1300 768 284 or you can email us at enquiry@taxrefundonspot.com.au

Medicare Levy Surcharge – Tax Refund On Spot

The Medicare levy surcharge (MLS) is planned to reduce the demand on the public Medicare system.

You will be required to pay the MLS if your income for MLS purposes is over the base income threshold and you or your families do not have an suitable level of private patient hospital cover. This applies if not you are excused from paying the Medicare levy and your dependents are also exempt or have an suitable level of private cover.

The base income threshold is $90,000 for singles and $180,000 for families. However, you do not have to pay the MLS if your family income exceeds the threshold but your own income for MLS purposes was $20,896 or less.

Private patient hospital cover is provided by registered health insurers for hospital action provided in an Australian hospital or day hospital. You must arrange and pay for your cover straight with the insurer.

For singles, an appropriate level of cover must have an excess of $500 or less. Couples or families must have an excess of $1,000 or less.

General cover, commonly known as ‘extras’, is not private patient hospital cover. It covers items such as optical, dental, physiotherapy or chiropractic treatment.

We will apply the rate of MLS that corresponds with your income for MLS purposes. If you have to pay the surcharge, it will be incorporated with the Medicare levy and shown as one amount on your notice of assessment called Medicare levy and surcharge.

For more information on Etax, myTax ATO and online tax return, please contact us at 1300768284 or you can email us at enquiry@taxrefundonspot.com.au