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znell2(Initiate)Initiate
31 Jan 2024

Hello


I have two clients that are both blind pensioners. They have dependant children and no private health insurance. The husband claims full exemption and pays no Medicare Levy. The wife claims half levy exemption to cover the children. The children are not in an exemption category.


Their income is above the thresholds for the surcharge. Am I correct that the husband will not pay the surcharge as he is fully exempt from Medicare Levy? Is it correct that the wife will pay the full surcharge as she is paying half Medicare Levy?

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1 replies
349 views
1 replies

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Most helpful reply

Deb_ATO(Community Support)Community Support
5 Feb 2024

Hi @znell2


This one is tricky.


When someone is a prescribed person, they’ll only be exempt from the Medicare levy surcharge, if they were in an exemption category for the full financial year and so were their dependants, or their dependants had private patient hospital cover for the whole of the financial year.


In this circumstance both the husband and wife may be liable for the Medicare Levy Surcharge but still may have the full and half exemption for the Medicare Levy. 


All replies

Most helpful reply

Deb_ATO(Community Support)Community Support
5 Feb 2024

Hi @znell2


This one is tricky.


When someone is a prescribed person, they’ll only be exempt from the Medicare levy surcharge, if they were in an exemption category for the full financial year and so were their dependants, or their dependants had private patient hospital cover for the whole of the financial year.


In this circumstance both the husband and wife may be liable for the Medicare Levy Surcharge but still may have the full and half exemption for the Medicare Levy. 


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Exempt from half Medicare Levy. Do you pay the Surcharge | ATO Community