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_Brichiyo(Newbie)Newbie
16 Mar 2021

I recently got Audit for the Medicare Levy Exemption for 2018-2019 and had to pay back around 1k , I've supplied them my Medicare levy exemption from Medicare that year. ATO said "After reviewing Information available to us, we haven't been able to determine that you are eligible for the exemption. This could be because we haven't been able to confirm that your dependant spouse is also within an exemption category during the period of claim.� Called the data matching team and they advise me to apply for another Medicare levy exemption letter,Received it today stated that I am not entitled to Medicare benefit from 01 July 2018 - 30 June 2019 Also told me that because my partner is eligible for Medicare I might have to pay half of the levy. I am a foreign resident during 2018-2019 on a 485 visa and applied for partner visa on 30 July 2019.My partner is an Australian Citizen. We started de facto in March but started dating in Jan. My accountant put her as my spouse on tax return from January 2019. From what I read Here https://www.ato.gov.au/individuals/tax-return/2017/tax-return/medicare-levy-questions-m1-m2/m1-medicare-levy-reduction-or-exemption-2017/#Worksheet_2 Category 2: Foreign residentIf you were a foreign resident for tax purposes for the full year, you can claim a full exemption for the year (365 days).If you were a foreign resident for only part of the year, you can claim a full exemption for that period if:

  • you did not have any dependants for that period, or
  • all your dependants were in an exemption category for that period.
Also Additional conditions - Exemption that applies
Additional condition metExemption that applies
You had no dependants.Full
Each of your dependants (including your spouse if you had one) either:was in one of the exemption categories, orhad to pay the Medicare levy.Full My partner had to pay Medicare levy.Does it mean that I am supposed to be eligible for a full 365 days exemption, not half?

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BlakeATO(Community Support)Community Support
17 Mar 2021

Hi @Brichiyo

Under Category 3 (not eligible for Medicare), you and all your dependants must be exempt. If your spouse was not also exempt from Medicare levy, then you cannot claim a Medicare levy exemption under this category.

Foreign residents for tax purposes for the full year can claim a Medicare exemption under Category 2. Under the full year foreign resident rule, we don't consider your spouse or children.

You'll need to confirm which category you've told us you're exempt under, and which category our data matching team is assessing you under.

If our data matching team is considering you under Category 3, this explains why we're considering your spouse. This is why we have determined you're liable for Medicare levy. From what you've said, you're probably exempt under Category 2.

You'll need to contact our data matching team to work it out. If your letters do not have a case owner, you can find how to contact our data matching team on our website.

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Most helpful reply

BlakeATO(Community Support)Community Support
17 Mar 2021

Hi @Brichiyo

Under Category 3 (not eligible for Medicare), you and all your dependants must be exempt. If your spouse was not also exempt from Medicare levy, then you cannot claim a Medicare levy exemption under this category.

Foreign residents for tax purposes for the full year can claim a Medicare exemption under Category 2. Under the full year foreign resident rule, we don't consider your spouse or children.

You'll need to confirm which category you've told us you're exempt under, and which category our data matching team is assessing you under.

If our data matching team is considering you under Category 3, this explains why we're considering your spouse. This is why we have determined you're liable for Medicare levy. From what you've said, you're probably exempt under Category 2.

You'll need to contact our data matching team to work it out. If your letters do not have a case owner, you can find how to contact our data matching team on our website.

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