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Private health and Medicare levy?

So I've been on the ph to the ato for an hour and given up because I've been told 3 different things from 2 different people (that have completly contradicted eachother or the complete opposite of eachother) and put on hold about 10 times. Does having top private health insurance reduce what you have to pay towards the medicare levy? I keep trying to do my tax on 'mytax' gov site and its saying we aren't eligible for a reduction. I thought that's part of the reason people have private health - to reduce your medicare levy payment. Is there a top income cap/threshold or something? What's the point in paying $1000s in private health and $1000s medicare levy. Might as well get rid of our private health if that's the case coz we don't use it or medicare - certainty not what we pay into either funds that's for sure.


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Answers (5)

The general Medicare levy you still have to pay.
Private health insurance only makes you exempt from the medicare surcharge if you combined earn over $180,000 per year.

 What I think you mean is you would only pay the medicare surcharge if you earn over 180K and dont have private health (hospital specifically).
If you earn less than that you arent exempt from it because you dont earn enough to pay it in the first place.

helpful (0) 
 Thats what the comment says
helpful (2) 
 No the comment makes it sound like you would pay it if you earnt less than 180. It wasnt clear
helpful (0) 
 No it doesnt...
helpful (0) 
 It makes perfect sense
helpful (0) 

There's the medicare levy and the medicare levy surcharge. Two separate things. Having full hospital cover gives you a reduction in the medicare levy surcharge. You still have to pay the medicare levy.

If u have private health u pay the levy just not the surcharge

From ATO web

Medicare gives Australian residents access to health care. It is partly funded by taxpayers who pay a Medicare levy of 2% of their taxable income.

Your Medicare levy is reduced if your taxable income is below a certain threshold. In some cases you may not have to pay the levy at all.

If you don’t have private hospital health insurance, you may have to pay the Medicare levy surcharge (MLS) in addition to the Medicare levy. This depends on your income for MLS purposes.

If you do have an appropriate level of private hospital health insurance, you won't have to pay the MLS, and depending on your income you may be eligible for the private health insurance rebate. This rebate is an amount the government contributes towards the cost of your private hospital health insurance premiums.

The Medicare levy and MLS and any reductions are calculated from information provided in your tax return.

If you don’t take out Private Hospital Cover by your 31st birthday, you will be forced to pay a 2% loading for every year you are aged over 30.

If you’re privately insured before June 30 of the year you turn 31 you will be on the lowest premium rate for life. If, for example, you wait until you’re 40 to take out private health insurance you’ll pay an extra 20% and if you wait until you’re 45 you’ll pay an extra 30%. The maximum loading is 70%.