Tax and Structures

Individual taxation

Medicare Levy

The Medicare Levy is currently 2% on an individual’s taxable income and is generally payable in addition to the tax payable. 

The Medicare Levy is not payable in certain circumstances where income falls below the relevant income thresholds. 

From the 2022/23 financial year, the income threshold for individuals is $24,276 and for couples/families the combined income threshold is $40,939 

There is an additional amount of threshold for each dependent child or student, this amount is $3,760. 

The Medicare levy is also not payable for any individual who is eligible for the Senior and Pensioner Tax Offset (SAPTO). The SAPTO is a tax offset available for senior Australians who are eligible for an Australian Government Pension or Allowance and whose income levels are below certain income thresholds. The maximum SAPTO currently payable is $2,230 for a single and $1,602 for each member of a couple.