The medicare levy was introduced in 1983-84 at an annual rate of 1%. The levy for that part tax year was 0.416% of taxable income, subject to a phase-in calculation on lower incomes, and a ceiling amount of $291.20.
The levy applies on the whole of taxable income (or adjusted income for the purposes of the Medicare Levy Surcharge), subject to low income exemptions and a phase-in.
There are certain exemptions, most notably for taxpayers not entitled to Medicare benefits or who are otherwise covered for medical expenses (e.g. ADF members).
The current Medicare Levy is 2%. A proposed rate increase to 2.5% from 2019-20 in order to fund NDIS was abandoned.
The Medicare Levy Surcharge was first introduced with effect from the 1997-98 financial year. It applies on higher incomes where insufficient hospital insurance cover is maintained. It is calculated as a percentage of adjusted income, if above the income threshold.
Tax Year
Levy %
Surcharge %
2020-21
2%
4 income tiers: 0%, 1%, 1.25%, 1.5%
2019-20
2%
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 0.5% 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 (includes 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%
1983-84 (from 1 Feb 1984)
0.416%
Medicare Levy Low Income Thresholds 2016-17
Eligible for SAPTO
Lower threshold
Upper limit
Single
$34,244
$42,805
Family
$47,670
$59,587
Family income lower limit is increased by $3,356 for each additional child
All Other
Lower threshold
Upper limit
Single
$21,655
$27,068
Family
$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
Lower threshold
Upper limit
Single
$33,738
$42,172
Family
$ 46,966
$58,707
Family income lower limit is increased by $3,306 for each additional child
All Other
Lower threshold
Upper limit
Single
$21,335
$26,668
Family
$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
Lower threshold
Upper limit
Single
$33,044
$41,305
Family
$46,000
$57,500
Family income lower limit is increased by $3,238 for each additional child
All Other
Lower threshold
Upper limit
Single
$20,896
$26,120
Family
$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
Lower threshold
Upper limit
Single
$32,279
$37,975
Family
$46,000
$54,117
Family income lower limit is increased by $3,156 for each additional child
All Other
Lower threshold
Upper limit
Single
$20,542
$24,167
Family
$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
Lower threshold
Upper limit
Single
$30,685
$36,100
Family
$44,500
$52,352
Family income lower limit is increased by $3,007 for each additional child
Eligible for Pensioner Offset
Lower threshold
Upper limit
Single
$30,451
$35,824
Family
$44,500
$52,352
Family income lower limit is increased by $3,007 for each additional child
All Other
Lower threshold
Upper limit
Single
$19,404
$22,828
Family
$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
Lower threshold
Upper limit
Single
$30,685
$36,100
Family
$44,500
$52,352
Family income lower limit is increased by $2,919 for each additional child
Eligible for Pensioner Offset
Lower threshold
Upper limit
Single
$30,439
$35,810
Family
$44,500
$52,352
Family income lower limit is increased by $2,919 for each additional child
All Other
Lower threshold
Upper limit
Single
$18,839
$22,163
Family
$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
Lower threshold
Upper limit
Single
$29,867
$35,137
Family
$43,500
$51,176
Family income lower limit is increased by $2,865 for each additional child
Eligible for Pensioner Offset
Lower threshold
Upper limit
Single
$27,697
$32,584
Family
$43,500
$51,176
Family income lower limit is increased by $2,865 for each additional child
All Other
Lower threshold
Upper limit
Single
$18,488
$21,750
Family
$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
Lower threshold
Upper limit
Single
$ 29,867
$35,137
Family
$42,000
$49,412
Family income lower limit is increased by $2,757 for each additional child
Eligible for Pensioner Offset
Lower threshold
Upper limit
Single
$27,697
$32,584
Family
$42,000
$49,412
Family income lower limit is increased by $2,757 for each additional child
All Other
Lower threshold
Upper limit
Single
$18,488
$21,750
Family
$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
Lower threshold
Upper limit
Single
$25,867
$30,431
Family
$37,950
$44,647
Family income lower limit is increased by $2,682 for each additional child
Eligible for Pensioner Offset
Lower threshold
Upper limit
Single
$22,922
$26,967
Family
$37,950
$44,647
Family income lower limit is increased by $2,682 for each additional child
All Other
Lower threshold
Upper limit
Single
$17,309
$20,363
Family
$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
Lower threshold
Upper limit
Single
$24,867
$29,255
Family
$33,500
$39,411
Family income lower limit is increased by $2,594 for each additional child
Eligible for Pensioner Offset
Lower threshold
Upper limit
Single
$21,637
$25,455
Family
$33,500
$39,411
Family income lower limit is increased by $2,594 for each additional child
All Other
Lower threshold
Upper limit
Single
$16,740
$19,694
Family
$ 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
Lower threshold
Upper limit
Individual
$15,062
$16,283
Pensioner under age pension age
$17,164
$18,555
Family Income *
Lower threshold
Upper limit
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.