Medcare Levy Increase For NDIS 1 July 2014

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• Claiming Travel Allowance
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 Medicare Levy Increase From 1 July 2014
The Government is increasing the Medicare levy by half a percentage point.

Increase Your 2014 Tax Refund

Do any of these apply to your 2014 tax refund calculation?

• Allowances - Common for many workers, is it income and what deductions can be claimed?
  
• Work Related Deductions - Common for most workers, what expenses can you claim?
• Travel Expenses & Overtime Meal Allowances - Common in Transport and Construction, what rate applies to you?

Medicare Levy Surcharge 2013

Medicare Levy Surcharge 2013

You  are only required to pay medicare levy surcharge if your "adjusted taxable income" is over certain thresholds and you are not covered by hospital cover in a private medical insurance fund.

See this post for "Adjusted Taxable Income" and how it relates to medicare levy surcharge.

The thresholds for medicare levy surcharge in 2013 are a little different to previous years as there are different rates dependent on various income margins as follows:

	Unchanged	Tier 1	Tier 2	Tier 3
Singles	$84,000 or less	$84,001-97,000	$97,001-130,000	$130,001 or more
Families*	$168,000 or less	$168,001-194,000	$194,001-260,000	$260,001 or more
Rates	0.0%	1.0%	1.25%	1.5%

What is Medicare Levy Surcharge?

Individuals and families on incomes above the Medicare levy surcharge thresholds who do not have private patient hospital cover may have to pay the Medicare levy surcharge. The income threshold increases by $1500 for each additional dependant child.

The surcharge is in addition to the general 1.5% medicare levy.

E-tax Return

See these posts with tips, calculators and checklists to help you prepare your eTax Return (and get a better refund) with less hassle:

• checklist of eTax and Assessable Income 
• checklist of eTax and Allowable Deductions

For help with your eTax return see our eTax Return Checklist.

Web Based Tax Return App:

A benefit of using eZtax, our web based tax return app, is we have the genuine online tools, knowledge and experience to get the best tax refund for our clients, making it easy to complete your annual tax return online.

Our Web Based Tax Return App will step you through all the necessary questions to increase your  tax refund and take into account all relevant tax deductions and tax offsets. Try it now. Its FREE to get started!

Tax Return Estimate 2013

For help with increasing your 2013 tax refund use our quick tax return estimate for 2013:

If you have an iPhone you can download our Tax Return Calculator at the App Store. It's a FREE App which you can carry with you anywhere, anytime.

The calculator is based on a single person income and includes Medicare Levy and Medicare Levy Surcharge and Low Income Tax Offset. where it applies.

Do any of these apply to you?

 

Tax Rates for 2013 Refund Calculation

Below is a selection of 2013 tax rates and tables for income tax, Medicare Levy 2013, Medicare Levy Surcharge 2013 and Low Income Tax Offset 2013. For help with increasing your 2013 tax refund:

Tax rates 2012-13 (Residents)

Tax rates for 2013 hve changed with the most significant change being the higher tax free threshold of $18200. In reality, the combined changes to income thresholds and to the Low Income Tax Offset results in little change overall to the previous year:

0 – $18,200	Nil
$18,201 – $37,000	19c for each $1 over $18,200
$37,001 – $80,000	$3,572 plus 32.5c for each $1 over $37,000
$80,001 – $180,000	$17,547 plus 37c for each $1 over $80,000
$180,001 and over	$54,547 plus 45c for each $1 over $180,000

Medicare Levy 2013:

Medical Expenses Tax Offset 2013 Now Income Tested

The amount of net medical expenses tax offset claim now depends on your level of income. You can only claim an offset of 10% of the net medical expenses over $5,000 if you have an adjusted taxable income (ATI) above:

• $84,000 if they are single
• $168,000 if they are a couple or family. 

The family income threshold will increase by $1,500 for each dependent child after the first. 

If the ATI is below these income thresholds, you are not affected by this change and can continue to claim an offset of 20% of their net medical expenses over $2,120. Tweet

Medicare Levy Increase Commences 1 July 2014

From 1 July 2014, the government will increase the Medicare levy by 0.5% from 1.5% to 2% to provide funding for DisabilityCare Australia (i.e., the national disability insurance scheme).

Low-income earners will continue to receive relief from the Medicare levy through the low income thresholds for singles, families, seniors and pensioners.

The current exemptions from the Medicare levy will also remain in place. 
See these posts with tips, calculators and checklists to help you prepare your eTax Return (and get a better refund) with less hassle - checklist of eTax and Assessable Income and deductions and checklist of eTax and Allowable Deductions.

 For help with your eTax return see our eTax Return Checklist.

Web Based Tax Return App:

A benefit of using eZtax, our web based tax return app, is we have the genuine online tools, knowledge and experience to get the best tax refund for our clients, making it easy to complete your annual tax return online.

Our Web Based Tax Return App will step you through all the necessary questions to increase your 2014 tax refund estimate and take into account all relevant tax deductions and tax offsets. Try it now. Its FREE to get started! 

Medicare Levy and Surcharge for 2011-12

Medicare Levy & Surcharge for 2012:

Medicare Levy:

The general rate of the Medicare levy is 1.5% of taxable income, subject to exclusions and reduced levy as per table below:

Taxpayer type	No Levy if income is less than
Single  (no dependent children):	$18,839
Couple with combined income or sole parent:
0 dependents	$31,789
Each additional dependent  child	$31,789 +$ 2,919 for each additional dependent

Medicare Levy Surcharge:

The general rate of the Medicare levy Surcharge is 1% of taxable income, subject to exclusions as per table below:

Taxpayer type	No Levy if income is less than
Single or couple with full year Hospital Cover	Exempt
Single  (no dependent children):	$80,000
Couple with combined income (no children)	$160,000
Couple or single parent with dependent children	$160,000 + $1,500 each child

.........................................
See these posts with tips, calculators and checklists to help you prepare your eTax Return (and get a better refund) with less hassle - checklist of eTax and Assessable Income and deductions and checklist of eTax and Allowable Deductions.

 For help with your eTax return see our eTax Return Checklist.

Web Based Tax Return App:

A benefit of using eZtax, our web based tax return app, is we have the genuine online tools, knowledge and experience to get the best tax refund for our clients, making it easy to complete your annual tax return online.

Our Web Based Tax Return App will step you through all the necessary questions to increase your 2014 tax refund estimate and take into account all relevant tax deductions and tax offsets. Try it now. Its FREE to get started! 

Private Health Insurance Rebate Changes from 1 July 2012

As a result of the 2009-10 Federal Budget, the government will be introducing an income test for the Private Health Insurance Rebate to apply from 1 July 2012.

The rebate, which can be received as a reduction in policy premiums or as a rebate on your tax return, is currently 30%. From 1 July 2012 that rebate and AND the Medicare Levy Surcharge will be income tested against three income tier thresholds.

Medicare Levy Surcharge 2011

The Medicare Levy Surcharge of 1% still applies to taxable income.

You are exempt from the surcharge if you have private hospital cover for 365 days. If number of days is less than 365 days the surcharge is portioned on number of days you had private hospital cover (this information is available from the statement issued by the fund).

Where you are not exempt from the Medicare Levy Surcharge, the margin of income applicable to Medicare Levy Surcharge 2011 has changed as follows:

Medicare Levy Surcharge Income Margins 2011

The Medicare Levy Surcharge of 1% still applies to taxable income.

You are exempt from the surcharge if you have private hospital cover for 365 days. If number of days is less than 365 days the surcharge is portioned on number of days you had private hospital cover (this information is available from the statement issued by the fund).

Where you are not exempt from the Medicare Levy Surcharge, the margin of income applicable to Medicare Levy Surcharge 2011 has changed as follows:

Medicare Levy Surcharge 2010

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• 2014 Medicare Levy Surcharge UPDATE

• E-tax Return Checklist
• Claiming Overnight Travel Allowance
• 4 ways of Claiming Car Expenses
• Claiming Zone Tax offset 
• Claiming Work Clothes and Uniforms
• Tax Deduction Finder For My Job - Over 35 Occupations

You can also check this post ==> Medicare Levy Calculator

You  are only required to pay medicare levy surcharge if your "adjusted taxable income" is over certain thresholds and you are not covered by hospital cover in a private medical insurance fund. To compare funds you can click on the following link:


See this post for "Adjusted Taxable Income" and how it relates to medicare levy surcharge.

The thresholds for medicare levy surcharge in 2010 are as follows:

• for an individual (ie- no "dependant children" or spouse) and income is less than $73000, than medicare levy is not payable;
• for "couples" including couples from a same sex relationship, and combined taxable income is less than $146000, medicare levy surcharge is not payable.

What is Medicare Levy Surcharge?

Individuals and families on incomes above the Medicare levy surcharge thresholds who do not have private patient hospital cover may have to pay the Medicare levy surcharge. The ATO calculates it at the rate of 1% of your taxable income (including your total reportable fringe benefits). The income threshold increases by $1500 for each additional dependant child.

The surcharge is in addition to the general 1.5% medicare levy.

E-tax Return

See these posts with tips, calculators and checklists to help you prepare your eTax Return (and get a better refund) with less hassle:

• checklist of eTax and Assessable Income 
• checklist of eTax and Allowable Deductions
• eTax Return Checklist

Web Based Tax Return App:

A benefit of using eZtax, our web based tax return app, is we have the genuine online tools, knowledge and experience to get the best tax refund for our clients, making it easy to complete your annual tax return online.

Our Web Based Tax Return App will step you through all the necessary questions to increase your  tax refund and take into account all relevant tax deductions and tax offsets. Try it now. Its FREE to get started! 

Medicare Levy Calculator 2010

Related Posts:

• 2014 Medicare Levy Surcharge UPDATE

• E-tax Return Checklist
• Claiming Overnight Travel Allowance
• 4 ways of Claiming Car Expenses
• Claiming Zone Tax offset 
• Claiming Work Clothes and Uniforms
• Tax Deduction Finder For My Job - Over 35 Occupations

Click here for ==>  Medicare Levy Surcharge 2011 Update

Here is a medicare levy calculator that many will find helpful. The calculator will provide an estimate of  Medicare levy for you 2010 Australian tax return, taking into account any entitlement to a reduction or exemption (see below for an explanation).

Information you may need

• your taxable income;
• your spouse's taxable income;
• if you are eligible for an exemption, the number of days

 Link ==> Medicare Levy Calculator

If you are required to pay medicare levy on you 2010 income tax return, where your Australian tax return is prepared online with etax or any other online tax return preparation system, you may find the following tips helpful:

Medicare Levy Reduction - A reduction in medicare levy can apply depending on taxable income (individual and combined family income) and number of dependant children. For the 2009 year, for example, medicare levy is nil if you meet one of the following tests:

• Individual and income < $17794
• Individual eligible for Senior Australians Tax Offset < $28867 (higher threshold applies for couples)
• Individual eligible for the Pensioner Tax Offset < $25299 (higher threshold applies for couples)
• Family (including single parent families)
• ==> 1 child < $42000
• ==> 2 children < $44757
• ==> 3 children < $47514
• ==> 4 children < $50271
• ==> 5 children < $53028 etc

The above thresholds have various shade-in limits.

Medicare Levy Exemption - There are several exemption categories that include:

• If you are not an Australian resident you are EXEMPT from Medicare Levy.
• Defence force members who receive free medical under Defence Force arrangements are exempt (but not non-defence force spouses)
• Norfolk Island residents.

E-tax Return

See these posts with tips, calculators and checklists to help you prepare your eTax Return (and get a better refund) with less hassle:

• checklist of eTax and Assessable Income 
• checklist of eTax and Allowable Deductions
• eTax Return Checklist

Web Based Tax Return App:

A benefit of using eZtax, our web based tax return app, is we have the genuine online tools, knowledge and experience to get the best tax refund for our clients, making it easy to complete your annual tax return online.

Our Web Based Tax Return App will step you through all the necessary questions to increase your  tax refund and take into account all relevant tax deductions and tax offsets. Try it now. Its FREE to get started! 

What is Medicare Levy

Medicare is the scheme that gives Australian residents access to health care.

To help fund the scheme, resident taxpayers are subject to a Medicare levy. Normally, we calculate your Medicare levy at the rate of 1.5% of your taxable income. A variation to this calculation may occur in certain circumstances.

Generally, tax offsets do not reduce your Medicare levy. However, if you have excess refundable tax offsets, we use them to reduce your tax, including your Medicare levy.

Medicare Levy Reduction - A reduction in medicare levy can apply depending on taxable income (individual and combined family income) and number of dependant children. For the 2009 year, for example, medicare levy is nil if you meet one of the following tests:

• Individual and income < $17794
• Individual eligible for Senior Australians Tax Offset < $28867 (higher threshold applies for couples)
• Individual eligible for the Pensioner Tax Offset < $25299 (higher threshold applies for couples)
• Family (including single parent families)
• ==> 1 child < $42000
• ==> 2 children < $44757
• ==> 3 children < $47514
• ==> 4 children < $50271
• ==> 5 children < $53028 etc

The above thresholds have various shade-in limits.
Medicare Levy Exemption - There are several exemption categories that include:

• If you are not an Australian resident you are EXEMPT from Medicare Levy.
• Defence force members who receive free medical under Defence Force arrangements are exempt (but not non-defence force spouses)
• Norfolk Island residents.

Medicare Levy 2009 Unchanged

There were quite a few changes affecting 2009 - 2010 tax returns in the 2009 budget. Fortunately, the rate of medicare levy is unchanged with income thresholds increasing resulting in less medicare levy payable.

However, there are other changes that are relevant for the 2009 tax return and beyond:

• Medicare Levy Surcharge for 2009 changed ==> Surcharge Changes

• Changes to income tests affecting various entitlements ==> New Income Tests

Medicare Levy Surcharge 2009 Changes have Arrived

Following up on our previous post regarding changes to the Medicare Levy Surcharge in 2009, a modified Bill has passed through the Senate.

For the 2009 year, Medicare Levy Surcharge income thresholds have changed from $50,000 to $70,000 for singles and from $100,000 to $140,000 for couples and will rise annually in line with inflation. The Medicare Levy Surcharge is 1% of taxable income where the taxable income exceeds the income thresholds.

We understand the complexities of public policy, costs and the effect on consumers, but we believe the increase is fair and appropriate.

As practitioners we often observe the effect of "bracket creep" on taxpayers. Each new tax year we observed more and more taxpayers creeping over the threshold since the introduction of the surcharge in the 2001 year.

My Tax Zone

Medicare Levy Surcharge - Changes for 2008 and 2009

Changes to the Medicare Levy Surcharge Threshold:

See this update ===> Changes introduced

On 24 September 2008 the bill to change the Medicare Levy Surcharge income thresholds did not pass the Senate.

The bill proposed to increase the income thresholds where the surcharge applied from $50000 tp $100000 for induviduals and $100000 to $150000 for families.

What is Medicare Levy Surcharge?

Individuals and families on incomes above the Medicare levy surcharge thresholds who do not have private patient hospital cover may have to pay the Medicare levy surcharge. The ATO calculates it at the rate of 1% of your taxable income (including your total reportable fringe benefits). The income threshold increases by $1500 for each additional dependant child.

The surcharge is in addition to the general 1.5% medicare levy.

By David Maynard
CEO My Tax Zone