I lodged my tax return and have a debt of $4300. Approximately $1700 of this is because I pay enough tax, which is very clear to work out when I look at the tax I should have paid vs. the tax I did pay. The Medicare levy is approximately $2500 of the debt, and I’m very confused as to how I am in debt for this. My understanding is the PAYG amount withheld is meant to include enough to cover the estimated 2% levy?
Hi @BLT1995,
It depends on your situation. We get data from other places like banks, private health insurers, other government agencies, etc. All of these may impact your return which is why we generally encourage everyone to wait to lodge.
Hi @BLT1995,
The Medicare levy is 2% of your taxable income. If your family income is over the threshold, you may also need to pay the Medicare Levy Surcharge (MLS).
If your return wasn't 'tax ready' when you lodged, your estimated outcome may change. After your return has finished processing your notice of assessment will break down what's happened.
We have info about the Medicare levy and MLS in our article.
Thanks Riley. My income wasn’t “tax ready”, but if the details on my last payslips (such as taxable income and tax withheld match) what’s in the return, presumably nothing will change irregardless of the tax ready status?
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