Taxation Determination TD 92/168







This Determination, to the extent that it is capable of being a 'public ruling' in terms of Part IVAAA of the Taxation Administration Act 1953, is a public ruling for the purposes of that Part. Taxation Ruling TR 92/1 explains when a Determination is a public ruling and how it is binding on the Commissioner. Unless otherwise stated, this Determination applies to years commencing both before and after its date of issue. | 1. No. An individual taxpayer who is an Australian resident at any time during an income year is liable to pay a Medicare Levy on his or her taxable income under paragraph 251s(1)(a) of the Income Tax Assessment Act 1936 (ITAA), unless during that income year the taxpayer is classified as a "prescribed person". | 2. A "prescribed person" is defined in subsection 251U(1) of the ITAA . The main categories are: | 3. The rate of the Medicare Levy is, generally, a fixed percentage of the taxpayer's taxable income for the year, as set by the Medicare Levy Act 1986 . Relief is granted to low income earning taxpayers. | Example: "A" is a resident merchant seaman fully covered for all medical expenses by his employer while at sea under the Navigation Act 1912 and the Seamens Compensation Act 1911 . He is not a "prescribed person" like a member of the Australian Defence Forces under paragraph 251U(1)(a) of the ITAA, who is entitled to full free medical treatment during a full income year, and, subject to marital circumstances, is fully or partially exempt from payment of a Medicare Levy. | "A's" rights and entitlements under section 127 of the Navigation Act 1912 do not extend beyond his employment conditions. Those employment conditions do not influence full or partial exemption of a Medicare Levy. | Commissioner of Taxation 08/10/92 | Previous Draft No.: TD 92/D115


Legislative references: ITAA 251S(1)(a); ITAA 251T(a); ITAA 251U(1); Medicare Levy Act 1986 6(1)
Subject references: medicare levy; seaman