Loading
This thread is archived and the information may not be up-to-date. You can't reply to this thread.
Beimar(Initiate)Initiate
2 Aug 2024

Hi,

We have a client who has stopped working for medical reasons. He has received superannuation Lump sum, which has resulted in him having to pay Medicare Levy Surcharge (MLS).


According to the information in the following link:

https://www.ato.gov.au/individuals-and-families/medicare-and-private-health-insurance/medicare-levy-surcharge/medicare-levy-surcharge-income-thresholds-and-rates


It states:


"If you meet both of the following conditions, you can reduce your income for MLS purposes by any taxed element of the super lump sum, other than a death benefit, that does not exceed your (or your spouse's) low rate cap:

  • you (or your spouse) are aged from your (or their) preservation age to under 60 years old
  • you (or your spouse) received a super lump sum."

Our client meet both conditions. What is my next step for us to proceed?


HandyTax still asking for the number of days liable for the surcharge, and there is an error when I enter "0" days.


I hope you can help me.


Thank you

222 views
3 replies
222 views
3 replies

Most helpful response

Most helpful reply

taxfriend(Superuser)Superuser
2 Aug 2024

Hello, more information is required to see if your client would meet the eligibility to reduce their MLS income, your client would have to strictly be between perservation age (based on their birthday in the link) and 60 as per the table here: Super withdrawal options - maybe the system has picked up that they have not reached this age and thats why its not accepting it?

All replies

Most helpful reply

taxfriend(Superuser)Superuser
2 Aug 2024

Hello, more information is required to see if your client would meet the eligibility to reduce their MLS income, your client would have to strictly be between perservation age (based on their birthday in the link) and 60 as per the table here: Super withdrawal options - maybe the system has picked up that they have not reached this age and thats why its not accepting it?

Featured articles

Tax tips for managing your side hustle

22 Apr 2024 · 6 min read time

Tax on gifts and inheritances

15 Apr 2026 · 5 min read time

How much tax should I pay on a second job? Claiming the tax-free threshold

15 Apr 2026 · 4 min read time

Top liked users

  1. Bruce4Tax

    (Taxicorn)

    3108 likes

  2. Taxduck

    (Taxicorn)

    2107 likes

  3. PayrollDeanne

    (Taxicorn)

    844 likes

  4. YellowPotato

    (Taxicorn)

    548 likes

  5. knaresbro

    (Devotee)

    368 likes

Top contributors

  1. Bruce4Tax

    (Taxicorn)

    9647contributions

  2. Taxduck

    (Taxicorn)

    4815contributions

  3. PayrollDeanne

    (Taxicorn)

    2047contributions

  4. YellowPotato

    (Taxicorn)

    1383contributions

  5. YEP

    (Devotee)

    836contributions

Loading
Medicare Levy Surcharge conditions to reduce MLS | ATO Community