Medicare Levy Thresholds

The Medicare levy threshold amount for individuals eligible for the senior Australians tax offset will increase to$30,685 from 1 July 2010 (up from $29,867 for 2009-10).

The Medicare levy threshold amount for certain couples eligible for the senior Australians tax offset, where the threshold for single senior Australians is not sufficient to ensure that they incur no Medicare levy liability until they incur an income tax liability, will increase to $44,500 from 1 July 2010 (up from $43,500 for 2009-10). The Medicare levy phase-in limit for individuals eligible for the senior Australians tax offset will also increase to $36,100 from 1 July 2010 (up from $35,137 for 2009-10). The Medicare levy phase-in limit that applies to certain couples eligible for the senior Australians tax offset, will also increase to $52,353 from 1 July 2010 (up from $51,177 for 2009-10).

From the 2009-10 income year, the Medicare levy low-income thresholds will be increased for singles to $18,488 (up from $17,794 for 2008-09) and to $31,196 for those who are members of a family (up from $30,025 for 2009-10). The additional amount of threshold for each dependent child or student will also be increased to $2,865 (from $2,757).

The Medicare levy low-income threshold for pensioners below Age Pension age will also be increased from 1 July 2009 to $27,697 (from $25,299). This increase will ensure that pensioners below Age Pension age do not pay the Medicare levy while they do not have an income tax liability.