The medicare levy was introduced in 1983-84 at an annual rate of 1%. The levy for that year was 0.416% of taxable income, subject to phase-in calculation on lower incomes and a ceiling amount of $291.20.
Application of the levy which applies to the whole of taxable income (or adjusted income for the purposes of the MLS), has always been subject to low income exemptions and phase-in, and certain other exemptions most notably for taxpayers not entitled Medicare benefits (e.g. ADF members).
Percentage Rates - Historical Medicare Levy and Medicare Levy Surcharge
| Medicare Levy Historical Rates | ||
| Tax Year | % of taxable income if above low income threshold | High income no private hospital cover surcharge % of adjusted income if above the threshold (“MLS”) |
| 2019-20 proposed* increase to fund NDIS but since abandoned | * | 4 income tiers: 0%, 1%, 1.25%, 1.5% |
| 2018-19 | 2% | 4 income tiers: 0%, 1%, 1.25%, 1.5% |
| 2017-18 | 2% | 4 income tiers: 0%, 1%, 1.25%, 1.5% |
| 2016-17 | 2% | 4 income tiers: 0%, 1%, 1.25%, 1.5% |
| 2015-16 | 2% | 4 income tiers: 0%, 1%, 1.25%, 1.5% |
| 2014-15 increase to fund NDIS | 2% | 4 income tiers: 0%, 1%, 1.25%, 1.5% |
| 2013-14 | 1.5% | 4 income tiers: 0%, 1%, 1.25%, 1.5% |
| 2012-13 | 1.5% | 4 income tiers: 0%, 1%, 1.25%, 1.5% |
| 2011-12 | 1.5% | 1% |
| 2010-11 | 1.5% | 1% |
| 2009-10 | 1.5% | 1% |
| 2008-09 | 1.5% | 1% |
| 2007-08 | 1.5% | 1% |
| 2006-07 | 1.5% | 1% |
| 2005-06 | 1.5% | 1% |
| 2004-05 | 1.5% | 1% |
| 2003-04 | 1.5% | 1% |
| 2002-03 | 1.5% | 1% |
| 2001-02 | 1.5% | 1% |
| 2000-01 | 1.5% | 1% |
| 1999-2000 | 1.5% | 1% |
| 1998-99 | 1.5% | 1% |
| 1997-98 | 1.5% | 1% |
| 1996-97 (gun buy-back surcharge 0.2%) | 1.7% | |
| 1995-96 increase to offset declining receipts | 1.5% | |
| 1993-94 | 1.4% | |
| 1992-93 | 1.25% | |
| 1991-92 | 1.25% | |
| 1990-91 | 1.25% | |
| 1989-90 | 1.25% | |
| 1988-89 | 1.25% | |
| 1987-88 | 1.25% | |
| 1986-87 Dec 1986 | 1.25% | |
| 1985-86 | 1% | |
| 1984-85 | 1% | |
| Medicare Levy introduced 1 Feb 1984 @1% p.a. For 1983-84 year this was apportioned to 5 months @ 0.416% | ||
Low Income Thresholds - Medicare Levy
| Medicare Levy Low Income Thresholds 2016-17 | ||||
| Eligible for SAPTO | All Other | |||
| Lower threshold | Upper limit | Lower threshold | Upper limit | |
| Single | $34,244 | $42,805 | $21,655 | $27,068 |
| Family | $47,670 | $59,587 | $36,541 | $45,676 |
| Family income lower limit is increased by $3,356 for each additional child | ||||
| Medicare Levy Low Income Thresholds 2015-16 | ||||
| Eligible for SAPTO | All Other | |||
| Lower threshold | Upper limit | Lower threshold | Upper limit | |
| Single | $33,738 | $42,172 | $21,335 | $26,668 |
| Family | $ 46,966 | $58,707 | $36,001 | $45,001 |
| Family income lower limit is increased by $3,306 for each additional child | ||||
| Medicare Levy Low Income Thresholds 2014-15 | ||||
| Eligible for SAPTO | All Other | |||
| Lower threshold | Upper limit | Lower threshold | Upper limit | |
| Single | $33,044 | $41,305 | $20,896 | $26,120 |
| Family | $46,000 | $57,500 | $35,261 | $44,076 |
| Family income lower limit is increased by $3,238 for each additional child | ||||
| Medicare Levy Low Income Thresholds 2013-14 | ||||
| Eligible for SAPTO | All Other | |||
| Lower threshold | Upper limit | Lower threshold | Upper limit | |
| Single | $32,279 | $37,975 | $20,542 | $24,167 |
| Family | $46,000 | $54,117 | $34,367 | $40,431 |
| Family income lower limit is increased by $3,156 for each additional child | ||||
| Medicare Levy Low Income Thresholds 2012-13 | ||||
| Eligible for SAPTO | All Other | |||
| Lower threshold | Upper limit | Lower threshold | Upper limit | |
| Single | $32,279 | $37,975 | $20,542 | $24,167 |
| Family | $46,000 | $54,117 | $33,693 | $39,638 |
| Family income lower limit is increased by $3,094 for each additional child | ||||
| Medicare Levy Low Income Thresholds 2011-12 | ||||||
| Eligible for SATO | Eligible for Pensioner Offset | All Other | ||||
| Lower threshold | Upper limit | Lower threshold | Upper limit | Lower threshold | Upper limit | |
| Single | $30,685 | $36,100 | $30,451 | $35,824 | $19,404 | $22,828 |
| Family | $44,500 | $52,352 | $44,500 | $52,352 | $32,743 | $38,521 |
| Family income lower limit is increased by $3,007 for each additional child | ||||||
| Medicare Levy Low Income Thresholds 2010-11 | ||||||
| Eligible for SATO | Eligible for Pensioner Offset | All Other | ||||
| Lower threshold | Upper limit | Lower threshold | Upper limit | Lower threshold | Upper limit | |
| Single | $30,685 | $36,100 | $30,439 | $35,810 | $18,839 | $22,163 |
| Family | $44,500 | $52,352 | $44,500 | $52,352 | $31,789 | $37,398 |
| Family income lower limit is increased by $2,919 for each additional child | ||||||
| Medicare Levy Low Income Thresholds 2009-10 | ||||||
| Eligible for SATO | Eligible for Pensioner Offset | All Other | ||||
| Lower threshold | Upper limit | Lower threshold | Upper limit | Lower threshold | Upper limit | |
| Single | $29,867 | $35,137 | $27,697 | $32,584 | $18,488 | $21,750 |
| Family | $43,500 | $51,176 | $43,500 | $51,176 | $31,196 | $36,701 |
| Family income lower limit is increased by $2,865 for each additional child | ||||||
| Medicare Levy Low Income Thresholds 2008-09 | ||||||
| Eligible for SATO | Eligible for Pensioner Offset | All Other | ||||
| Lower threshold | Upper limit | Lower threshold | Upper limit | Lower threshold | Upper limit | |
| Single | $ 29,867 | $35,137 | $27,697 | $32,584 | $18,488 | $21,750 |
| Family | $42,000 | $49,412 | $42,000 | $49,412 | $30,025 | $35,323 |
| Family income lower limit is increased by $2,757 for each additional child | ||||||
| Medicare Levy Low Income Thresholds 2007-08 | ||||||
| Eligible for SATO | Eligible for Pensioner Offset | All Other | ||||
| Lower threshold | Upper limit | Lower threshold | Upper limit | Lower threshold | Upper limit | |
| Single | $25,867 | $30,431 | $22,922 | $26,967 | $17,309 | $20,363 |
| Family | $37,950 | $44,647 | $37,950 | $44,647 | $29,207 | $34,361 |
| Family income lower limit is increased by $2,682 for each additional child | ||||||
| Medicare Levy Low Income Thresholds 2006-07 | ||||||
| Eligible for SATO | Eligible for Pensioner Offset | All Other | ||||
| Lower threshold | Upper limit | Lower threshold | Upper limit | Lower threshold | Upper limit | |
| Single | $24,867 | $29,255 | $21,637 | $25,455 | $16,740 | $19,694 |
| Family | $33,500 | $39,411 | $33,500 | $39,411 | $ 28,247 | $33,231 |
| Family income lower limit is increased by $2,594 for each additional child | ||||||
| Medicare Levy Low Income Thresholds 2002-03 | ||||
| Individual Income | Family Income * | |||
| Lower threshold | Upper limit | Lower threshold | Upper limit | |
| Individual | $15,062 | $16,283 | ||
| Pensioner under age pension age | $17,164 | $18,555 | ||
| Married taxpayer with children and/or students | $25,417 | $27,477 | ||
| *Family income lower limit is increased by $2,334 for each additional child, upper limit by $2,523. No levy payable on incomes below the lower threshold. Levy on incomes over the lower threshold and below the upper limit is limited to 20% of the excess over the lower threshold amount. | ||||
Income Thresholds and Tiers - Medicare Levy Surcharge
From 2012-13 to 2020-21
| Medicare Levy Surcharge Income Tiers and Rates | ||||||||
| Base Tier (0%) | Tier (1%) | Tier 2 (1.25%) | Tier 3 (1.5%) | |||||
| Single | Family | Single | Family | Single | Family | Single | Family | |
| From 2014/15 to 2020/21 | $90,000 or less | $180,000 or less | $90,001 – $105,000 | $180,001 – $210,000 | $105,001 – 140,000 | $210,001 – $280,000 | over $140,000 | over $280,000 |
| 2013/14 | $88,000 or less | $176,000 or less | $88,001 – $105,000 | $176,001 – $204,000 | $102,001 – $136,000 | $204,001 – 272,000 | over $136,000 | over $272,000 |
| 2012/13 | $84,000 or less | $168,000 or less | $84,001 – $97,000 | $168,001 – $194,000 | $97,001 – $130,000 | $194,001 – $260,000 | over $130,000 | over $260.000 |
| For each additional child add $1,500 | ||||||||
From 1996-97 to 2011-12
| Medicare Levy Surcharge Income Thresholds (Rate: 1%) | ||||||||||
| 1996-97 to 2007-08 | 2008-09 | 2009-10 | 2010-11 | 2011-12 | ||||||
| Dependent students | Single | Family | Single | Family | Single | Family | Single | Family | Single | Family |
| 0 | $50,000 | $100,000 | $70,000 | $140,000 | $73,000 | $146,000 | $77,000 | $154,000 | $80,000 | $160,000 |
| 1 | $100,000 | $100,000 | $140,000 | $140,000 | $146,000 | $146,000 | $154,000 | $154,000 | $160,000 | $160,000 |
| 2 | $101,500 | $101,500 | $141,500 | $141,500 | $147,500 | $147,500 | $155,500 | $155,500 | $161,500 | $161,500 |
| 3 | $103,000 | $103,000 | $143,000 | $143,000 | $149,000 | $149,000 | $157,000 | $157,000 | $163,000 | $163,000 |
| 4 | $104,500 | $104,500 | $144,500 | $144,500 | $150,500 | $150,500 | $158,500 | $158,500 | $164,500 | $164,500 |
| 5 | $106,000 | $106,000 | $146,000 | $146,000 | $152,000 | $152,000 | $160,000 | $160,000 | $166,000 | $166,000 |
| For each additional child add $1,500 | ||||||||||
Sources and links:
- A short history of increases to the Medicare levy
- Medicare – Background Brief
- Medicare: a quick guide
- Post-implementation Review: Increase of the Income Tax Thresholds for the Medicare levy Surcharge
- Tax Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Bill 2004
- Medicare Levy
- Medicare Levy Surcharge
.
This page was last modified 2018-04-25
