Private ruling: Medicare Levy and Medicare Levy Surcharge
Published: October 2014
Ruling period: Year ended 30 June 2014 | Year ended 30 June 2015 | Year ended 30 June 2016 | Year ended 30 June 2017
Date scheme commenced: 1 July 2013

Ruling: Q1: Are you liable for Medicare Levy and Medicare Levy Surcharge (MLS) while you are at post overseas? | A1: No.


Relevant legislative provisions: Medicare Levy Act 1986 Section 8D | Medicare Levy Act 1986 Subsection 3(5) | National Health Act 1953 Section 5A

Reasons for decision: Summary: Section 251S of the Income Tax Assessment Act 1936 (ITAA 1936) provides that the Medicare levy is payable by any person who, at any time during the relevant year of income, is a resident of Australia. There is a provision in section 251T of the ITAA 1936 which allows "prescribed persons" to be exempted from the Levy. The prescribed persons are listed at section 251U of the ITAA 1936 to include a member of the staff of the consular staff of a consular post established in Australia or a member of the family of that person. In your case, you are a prescribed person. Therefore, you are not liable for the Medicare levy for the period you are posted overseas. Furthermore, as your dependants are also in an exemption category, you also are not liable for Medicare Levy Surcharge for that same period.

Relevant facts: You are a civilian employee an Australian Defence organisation. | You were posted to the Embassy of Australia overseas for between 20XX and 20YY. | While at post, you and your family are covered for all medical expenses.