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epat95(Newbie)Newbie
8 July 2024

Hello,

We have been charged the MLS at any amount of $784.82 (myself only as my spouse had private health insurance). However, as both a family and individual we did not meet the income threshold to be liable. I am around $15,000 under as an individual, and as a family we are around $5,000 under the threshold. I have tried calling the ATO and cannot get through to discuss with someone. We did not make any reportable superannuation contributions (only employer contributions) and our incomes are clearly below the threshold.


Can someone advise (a) why this is happening; (b) how to ensure we arent charged $784 for something we're not legally liable to pay; and (c) if I can't change it, and cant get through to the ATO, and my assessment comes back the same as my estimate, how can I appeal it?


Thank you

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1 replies
540 views
1 replies

Most helpful response

Most helpful reply

TamaraATO(Community Support)Community Support
9 July 2024

Hello @ epat95


Sure


Just to make sure you are aware the MLS threshold went up by $3000 for individuals and $6,000 for a couple for the 2023 - 2024 FY.


Income for Medicare levy purposes include many sources, not just your income. Did you have a Salary Sacrifice agreement in place? Fringe Benefits arrangement? Any income from other sources?


It's hard to discuss without your details in front of me.


I will say that even if your spouse has private health insurance, it is invalid if you are not included on it. This is because we ask: Were you or ALL your dependants covered by an appropriate level of private health insurance.


We have a great article on Completing the Medicare questions on your Tax return.


If you wish to dispute this amount you can always Object to a decision.


All replies

Most helpful reply

TamaraATO(Community Support)Community Support
9 July 2024

Hello @ epat95


Sure


Just to make sure you are aware the MLS threshold went up by $3000 for individuals and $6,000 for a couple for the 2023 - 2024 FY.


Income for Medicare levy purposes include many sources, not just your income. Did you have a Salary Sacrifice agreement in place? Fringe Benefits arrangement? Any income from other sources?


It's hard to discuss without your details in front of me.


I will say that even if your spouse has private health insurance, it is invalid if you are not included on it. This is because we ask: Were you or ALL your dependants covered by an appropriate level of private health insurance.


We have a great article on Completing the Medicare questions on your Tax return.


If you wish to dispute this amount you can always Object to a decision.


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Medicare Levy Surcharge - Under Income Threshold | ATO Community