Hi, does anyone have the formula for exactly calculating the Medicare Levy? I understand the 2% but I am also looking to incorporate the reduction for low income earners i.e. between the lower and upper thresholds - currently $26,000 and $32,500 respectively. Many thanks
The basic formula for taxable incomes from $26,001 to $32,499 is:
(Taxable income less $26,000) x 10%
Example: For a taxable income of $29,000:
($29,000 - $26,000) x 10%
= $3,000 x 10%
= $300
Note that different thresholds apply for singles eligible for the seniors and pensioners tax offset and families.
The $26k and $32.5k amounts relate to the 2024 tax year. The threshold amounts for the current year are normally published in May or June.
The basic formula for taxable incomes from $26,001 to $32,499 is:
(Taxable income less $26,000) x 10%
Example: For a taxable income of $29,000:
($29,000 - $26,000) x 10%
= $3,000 x 10%
= $300
Note that different thresholds apply for singles eligible for the seniors and pensioners tax offset and families.
The $26k and $32.5k amounts relate to the 2024 tax year. The threshold amounts for the current year are normally published in May or June.
Many thanks for that - much appreciated.
22 Apr 2024 · 6 min read time
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