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Reference PageMedicare levy
Pension Administration Service | Bi-Annual Benefits | CPI Update | Latest Date to make changes to payments | Medicare
Most working Australians are required to pay the Medicare Levy. This is currently 1.5% of your taxable income.
Some Pension Recipients with more than one income, believe they pay the levy twice. This is not true. It’s just that the method of assessing the levy gives that impression.
Each fortnight, tax instalments (which include a component for the Medicare Levy) are deducted from your pension. The collection of the tax instalment is based on an estimate of your known taxable income for the year (i.e. your superannuation pension).
When you lodge an income tax return with the Australian Taxation Office (ATO) showing your actual total income for the year, the correct level of taxation and Medicare Levy is determined. The tax instalments already collected are then applied against your total taxable income. The result of this assessment is that you will either be entitled to a refund, or be required to pay some further tax.
We cannot tell you how much Medicare Levy is being deducted fortnightly. This information is only available from the ATO.