Hello ATO Community,
I have some questions that I am hoping someone with experience regarding this is able to answer on the Medicare levy exemption where both members of a couple are Defence members but one is only eligible for the half exemption due to having a dependant child.
Long story short, my wife and I are both ADF members and we have a dependant child. Usually as my taxable income is greater, I am the one that claims the half exemption on every return and she claims the full exemption.
For FY24/25, we completed a family agreement in line with the guidance Medical exemption from Medicare levy | Australian Taxation Office indicating that I would be the one claiming the half exemption for the FY and she would be claiming the full exemption.
However, during FY24/25 and after this agreement was made, I deployed on an operation that attracts an income tax exemption under 23AD.
Because of the assumption that one of us must be liable to pay the levy, my return had a full exemption for x number of days (period under the 23AD exemption) and half exemption for y number of days (period not under the 23AD exemption) and my spouse's return was the opposite.
My question - has this been done correctly or should I have claimed the half exemption for 365 days in line with the family agreement?
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