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Yen_Le(Initiate)Initiate
21 July 2025

P/S: Sorry for my third edits.

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Hi,


I am preparing tax return for my husband who is a permanent resident.


  • He was overseas until end of Jan 2025 BUT STILL AN AUSTRALIAN TAX RESIDENT based on the Domicile test. His foreign income is tax exempted.
  • Medicare eligibility statement confirmed he was not entitled to Medicare during this period and that he only needs to get private health insurance (PHI) by 31 Jan 2026.
  • During 1 Feb - 30 Jun 2025, he was unemployed and had not other income or benefits.
  • I got him PHI in Jul 2025.

For the tax return:

  1. How can declare partially tax resident on the tax return?
  2. How can I work out the number of days he was full 2% Medicare Levy exemption?
  3. What could be the number of days for half 2% exemption?

Thanks a ton,


Yen

114 views
3 replies
114 views
3 replies

All replies

JayATO(Community Support)Community Support
25 July 2025

Hiya @Yen_Le


Part year tax residency is listed at label A2 part year tax free threshold. If your husband meets the domicile test for the full year he is considered a resident for tax purposes for the full year.


To be eligible for a Medicare levy exemption under the not entitled to Medicare category, you and any other dependents would also have to have an exemption for that time. If you weren't in an exemption category he will not be eligible for an exemption.


If you were it is a full exemption for the amount of days you were both not entitled to Medicare benefits.


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