Private ruling: Medicare levy
Published: August 2011
Ruling period: Year ending 30 June 2010 | Year ending 30 June 2011
Date scheme commenced: 1 July 2009

Ruling: Question and answer: | Are you entitled to a Medicare levy exemption for the 20XX-XXand 20XX-XX financial years? | No



Reasons for decision: Summary: Section 251S of the Income Tax Assessment Act 1936 (ITAA 1936) provides that a Medicare levy shall be paid by an individual who is a resident of Australia at any time during the income year based on his or her taxable income for the year. However, Sections 251T and 251U of the ITAA 1936 provide that the Medicare levy is not payable by certain classes of persons, referred to as prescribed persons. An exemption from the levy is conferred by Section 251T of the ITAA 1936 for a person who is a prescribed person during the year of income. You are entitled to an exemption from the Medicare levy for the years requested, if you were in one of the following exemption categories: · You were a blind pensioner or you received the sickness allowance from Centrelink; · You were entitled to full free medical treatment for all conditions under Defence Force arrangements or Veterans Affairs Repatriation Health Card (Gold Card) or repatriation arrangements; · You were not an Australian resident for tax purposes; · You were a resident of Norfolk Island; · You were a member of a diplomatic mission or consular post in Australia or a member of such a persons family and you were living with them and you were not an Australian citizen and you do not ordinarily live in Australia; You have a certificate from the Levy Exemption Certification Unit of the Health Insurance Commission showing that you are not entitled to Medicare benefits. A letter from Medicare is not sufficient. You were an Australian resident for tax purposes for the 20XX-XXand 20XX-XX financial years. You have advised that you were overseas and therefore unable to use the Australian health care system during these financial years. However as you do not meet any of the exemption categories listed above; you are liable to pay full Medicare levy for both the financial years, as per section 251S of the ITAA 1936.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. Contact us at the address given in the fact sheet if you have any concerns. | Relevant facts: You were a resident of Australia for tax purposes for the 20XX-XXand 20XX-XX financial years. | You were outside of Australia during most of the 20XX-XXand 20XX-XX financial years. | You were unable to make use of the Australian health care system during the time you were overseas. | You do not meet any of the Medicare levy exemption categories listed under section 251T of the Income Tax Assessment Act 1936 .