Medicare Levy
An Australian tax, on top of income tax, that helps fund the public healthcare system.
The Medicare Levy is a flat percentage of taxable income, charged in addition to standard Income Tax, to help fund Australia's public healthcare system. Lower-income earners below a threshold are exempt or pay a reduced rate, and higher earners without private hospital cover can face an additional surcharge on top of the standard levy.
Worked Example
On taxable income above the low-income threshold, the Medicare Levy is calculated as a flat 2% of taxable income, added on top of whatever is owed under the standard income tax brackets.
Advertisement
Ad space