The Medicare Levy is a tax payable by Australian residents to cover health care charges. It is payable on taxable income, in addition to income tax. Individuals and families on higher incomes who do not have an appropriate level of private hospital cover may have to pay theMedicare levy surcharge.
Medicare Levy is usually calculated at 2% of taxable income. Areductionin the rate is available for people on low incomes and anexemptionis available for people in certain categories.
AMedicare Levy Calculatoris available on the Australian Taxation Office (ATO) web site to help you work out your obligation.