What are the 2014 Medicare Levy Rates?
Everybody pays the Medicare levy rate of 1.5% until the 1st July 2014, after which the rate will increase to 2%. There are exemptions to this rate including low income, veterans and foreign residents.
The extra 1% medicare surcharge is if your family income is over $168,000. This is taxable income after adding back investment losses and super.
See this table:
| Unchanged |
Tier 1 |
Tier 2 |
Tier 3 |
|
|---|---|---|---|---|
|
Singles |
$84,000 |
$84,001 - |
$97,001 - |
$130,001 |
|
Families |
$168,000 |
$168,001 - |
$194,001 - |
$260,001 |
|
Medicare levy |
0% |
1% |
1.25% |
1.5% |
Now the fun begins. If you have private health insurance you may qualify for a rebate which will reduce your cost of health insurance as per table below. As a family if your taxable income plus investment losses is under 176,000 you will get the 29.04% rebate.
| Singles Families |
≤$88,000 ≤$176,000 |
$88,001-102,000 $176,001-204,000 |
$102,001-136,000 $204,001-272,000 |
≥$136,001 ≥$272,001 |
|---|---|---|---|---|
|
Rebate |
||||
| Standard | Tier 1 | Tier 2 | Tier 3 | |
| < age 65 | 29.04% | 19.36% | 9.68% | 0% |
| Age 65-69 | 33.88% | 24.20% | 14.52% | 0% |
| Age 70+ | 38.72% | 29.04% | 19.36% |
0%
|
If after that you still want health insurance you will then need to pay extra due to life time cover if you decide to take out hospital cover later in life, you will pay a 2% loading on top of your premium for every year you are aged over 30.
