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27 Mar 2024

Hi, I hope everyone is doing well.


My partner and I are in a DeFacto relationship, and we're both under a 482 visa.


  • My taxable income is approximately $90k.
  • While hers is around $30k.


She's eligible for Medicare as she's Swedish, but I am not.


I've received conflicting answers from various accountants regarding our tax situation, so

I'm seeking clarification on two points:


  1. Do I need to pay the Medicare Levy (2%) because my partner is eligible for Medicare, even though I am not?
  2. As I understand, my partner has to pay the Medicare Levy based on her income, as she is eligible for it (2% of 30k). However, when we attempt to lodge our tax returns together (I claimed to be ineligible for Medicare, while she is eligible.), the system adds an additional Medicare Levy Surcharge of 1.25% on top of the Medicare Levy for her. Why would she need to pay this extra 1.25%? This discrepancy only arises when we lodge our tax returns together. Our combined incomes are well below the $180k threshold. Is it possible that the ATO system is generating an incorrect figure by combining our incomes as if it were hers alone?

Thank you.

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3 replies
584 views
3 replies

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Most helpful reply

Deb_ATO(Community Support)Community Support
2 Apr 2024

Hi @freakazoid19


  1. Nope, if you're not entitled to Medicare benefits you should be exempt. You'll need to apply for the exemption.
  2. To work out the MLS you'll need to add. Taxable income, reportable fringe benefits, total net investment losses, reportable super contributions and any trust income. Are any of these amounts also being included in the calculation?

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Most helpful reply

Deb_ATO(Community Support)Community Support
2 Apr 2024

Hi @freakazoid19


  1. Nope, if you're not entitled to Medicare benefits you should be exempt. You'll need to apply for the exemption.
  2. To work out the MLS you'll need to add. Taxable income, reportable fringe benefits, total net investment losses, reportable super contributions and any trust income. Are any of these amounts also being included in the calculation?

5 Apr 2024

1- Thanks for your answer.


2- Yes, everything. Our combined income is not nearly close to the threshold and she is still getting this Medicare Levy Surcharge of 1.25%.

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Medicare Levy and Medicare Levy Surcharge | ATO Community