Medicare Levy

Most working Australians are required to pay the Medicare Levy, which is currently 1.5% of your taxable income. However, some retired members who have more than one income, think that they pay the levy twice. This is not true. It’s just that the method of assessing the levy gives that impression.

During the year, tax installments (which include a component for the Medicare Levy) are deducted from your pension each fortnight. The collection of the tax installment is based on an estimate of your known taxable income for the year (i.e. your superannuation pension).

When you lodge an income tax return with the Australian Taxation Office that shows your actual total income for the year, the correct level of taxation and Medicare Levy is determined. The tax installments already collected are then applied against your total taxable income. When this assessment is done, you will either be entitled to a refund, or be required to pay some further tax.

We are unable to tell you how much Medicare Levy is being deducted fortnightly. This information is only available from the Australian Taxation Office.