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MedicareMedicareStage 6 - Year 11Stage 6 - Year 11

General MathematicsPreliminary

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Medicare Levy (1/5)

The Medicare levy is a payment made as part of our tax that pays for basic health care

services.The Medicare levy is 1.5% of taxable income.

Allowances are made for people on low incomes who do not have to pay the levy or

pay it at a reduced rate.

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Medicare Levy (2/5)

Calculate the Medicare levyMedicare levy for a person with an annual taxable income of $75$75 000000.

Medicare Levy =1.5%1.51000.015 x $75 000= $1 125

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Medicare Rebate (3/5)

The government provides a 30% rebate (refund) on the cost of

the private health insurance.

This is to encourage people to take up private health

cover

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Medicare Surcharge (4/5)

People on higher incomes who do not have private health insurance are

charged theMedicare levy surcharge.This surcharge is a further 1% of taxable income.

This may vary with the number of children.Threshold = $75,000

+$0 +$1500 +$1500 +$1500

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1100

Medicare Surcharge (5/5)

Calculate the total Medicare levyMedicare levy, including surchargesurcharge, paid by a person having one child,

no private health insurance and a taxable income of $175$175 000000 per annum.

Medicare LevyMedicare Levy =1.5%1.51000.015 x $175 000= $2 625

SurchargeSurcharge = 1%0.01 x $175 000= $1 750

Total LevyTotal Levy = $2 625 + $1 750= $4 375