Private ruling: Medicare levy exemption
Published: February 2013
Ruling period: Year ended 30 June 2013 | Year ending 30 June 2014
Date scheme commenced: 1 July 2012

Ruling: Q1: Are you exempt from the Medicare levy? | A1: No.

Relevant facts and circumstances: · You are a citizen of a country that has reciprocal medical benefits with Australia. · You are unable to obtain a Medicare levy exemption certificate from Medicare. · You are a resident of Australia.

Relevant legislative provisions: Income Tax Assessment Act 1936 Section 251T | Income Tax Assessment Act 1936 Section 251U

Reasons for decision: Summary: Section 251T of the Income Tax Assessment Act 1936 (ITAA 1936) provides that the Medicare levy is not payable by a prescribed person; which is itself defined in section 251U of the ITAA 1936. You will be a prescribed person if you: 1. are a blind pensioner or you receive the sickness allowance from Centrelink 2. are entitled to full free medical treatment for all conditions under defence force arrangements or Veterans' Affairs Repatriation Health Card (Gold Card) or repatriation arrangements 3. are not an Australian resident for tax purposes 4. are a resident of Norfolk Island 5. are a member of a diplomatic mission or consular post in Australia - or a member of such a person's family and you were living with them - and you were not an Australian citizen and you do not ordinarily live in Australia 6. have a certificate from the Medicare Levy Exemption Certification Unit of Medicare Australia showing that you are not entitled to Medicare benefits because you were a temporary resident for Medicare purposes. A letter from Medicare is not sufficient. The exemption of relevance to you is the sixth category relating to exemption certificates. This is the manner in which the Health Minister provides certification for exemption from the levy in accordance with paragraph 251U(1)(f) of the ITAA 1936. In your case, you are a citizen of a country that has reciprocal healthcare benefits with Australia and accordingly you are entitled to some Medicare benefits. Consequently you are ineligible to obtain a certificate of exemption from Medicare. As you do not fall into any of the above categories of prescribed persons you are subject to the Medicare levy.