Announcements
Worried you’re missing part of your refund? Remember, the low and middle income tax offset isn’t a refund on its own – it’s used to offset (or reduce) the amount of tax you pay. The offset amount you may be entitled to is automatically applied and could range between $255-$1080, depending on things like your taxable income and how much tax you’ve paid.
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ATO Community

Why does the ATO say I’m in debt to them?

Newbie

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Replies 1

I received a notice of assessment and I’m not sure why I received it. This is my first time receiving it. Just wondering what it means and why I owe money? It says I’m $656.48 in debt to Medicare levy, but when I selected ‘no’ for the questions asking if I’m covered by an appropriate level of private patient hospital cover, a comment pops up saying ‘you don’t have to pay the Medicare levy surcharge’ Just confused on what they are charging me for. Thanks
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Most helpful response

Devotee

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You may not be subject to the Medicare Levy Surcharge which is levied on an individual taxpayer if their taxable income is $90,000 or more, but you are still liable to pay Medicare Levy on your taxable income.  Medicare Levy is payable by most taxpayer unless you are exempt or do not reach the threshold. The debt you owe is most likely because tax credits not being sufficient to cover the tax assessed and medicare levy.

1 REPLY 1

Most helpful response

Devotee

Replies 0

You may not be subject to the Medicare Levy Surcharge which is levied on an individual taxpayer if their taxable income is $90,000 or more, but you are still liable to pay Medicare Levy on your taxable income.  Medicare Levy is payable by most taxpayer unless you are exempt or do not reach the threshold. The debt you owe is most likely because tax credits not being sufficient to cover the tax assessed and medicare levy.