Medicare Levy when one spose is exempt

 Author: Theresa(Champion)Registered Tax Professional

6 Aug 2025

The family income threshold for Medicare Levy reduction (2024–25) for a couple with no children is $49,677. If combined family income is above that and neither of you are fully exempt, you pay the full 2% Medicare Levy.

If one spouse is exempt (you), and the other (your wife) earns below the individual threshold (around $26k), she may get an exemption or reduction. But since she earns $35,000, she’s above the individual threshold.

Because your income ($74k) pushes the family income well above the threshold, your wife no longer qualifies for a reduced Medicare Levy even though you are exempt.

This is because her income alone is high enough that she no longer qualifies for the individual reduction, and the family reduction is not applied when only one spouse is exempt and the other earns too much.

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