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Tara2021(Initiate)Initiate
1 July 2021

Just started uni this year so HELP loan is new to me. I am well above the repayment threshold (I think the 7% bracket) however I'm not liable for the Medicare surcharge according to my all my previous tax returns and the same would apply this year due to no changes. Where does that leave me? As I read if I am not liable for the Medicare surcharge I will not have to make the compulsory repayment. Can you shed light on this? If I am not required to make the compulsory repayment what category do I sit regarding repayments?

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1,519 views
3 replies

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Iheartrefunds(Devotee)Devotee
1 July 2021

Whether you pay Medicare sucharge or not has nothing to do with your Help repayments. Your compulsory repayment amount will be calculated automatically when you do your tax return.

For what reason wouldn't you have to pay the Medicare surcharge? Are you not eligible for Medicare healthcare in Australia or do you mean it's because you have private health insurance?

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Iheartrefunds(Devotee)Devotee
1 July 2021

Whether you pay Medicare sucharge or not has nothing to do with your Help repayments. Your compulsory repayment amount will be calculated automatically when you do your tax return.

For what reason wouldn't you have to pay the Medicare surcharge? Are you not eligible for Medicare healthcare in Australia or do you mean it's because you have private health insurance?

Tara2021(Initiate)Initiate
1 July 2021

I was referring to this section on the website

https://www.ato.gov.au/Individuals/Study-and-training-support-loans/Compulsory-repayments/

I am not liable because my spouse and I are still under threshold for Medicare surcharge level with our combined income.

ChrisATO(Community Support)Community Support
5 July 2021

Hi @Tara2021

@Iheartrefunds is correct. It sounds like you may be confusing the Medicare levy with the Medicare levy surcharge (MLS). It is the Medicare levy that the page you linked is referring to.

It states that you will not have to make a compulsory repayment if you have a spouse or dependants and if (due to low family income) you:

    • are entitled to a reduction of the Medicare levy
    • do not have to pay the Medicare levy.

    You can find out more about the family income Medicare levy reduction on our website.

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