Private ruling: Medicare levy
Published: October 2014
Ruling period: Year ended 30 June 2012
Date scheme commenced: The scheme has commenced

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 person who is entitled to free medical treatment as a member of the Defence Force or as a relative of, or was otherwise associated with, a member of the forces. 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: Your spouse is a member of the Defence Force. | Your spouse was posted overseas during the relevant financial year. | You and your children went overseas with your spouse. | During the time you were overseas, you and your family were covered for full private medical expenses by the Defence Force. | You suspended your private hospital cover for the period you were overseas and returned to full coverage under an appropriate level of private patient hospital cover once you returned to Australia.