There are three broad categories of taxpayers eligible for an exemption from the Medicare Levy:
- Category 1: Medical exemption from Medicare levy
- Category 2: Foreign residents exemption from Medicare levy
- Category 3: Not entitled to Medicare benefits
Taxpayers in Category 1 or 2 do not need a Medicare Entitlement Statement to claim the exemption. If a taxpayer is not eligible for Medicare benefits (Category 3), they may be able to claim an exemption from the Medicare levy in their tax return. However, to claim the exemption the taxpayer must have a Medicare Entitlement Statement from the Department of Human Services. Other evidence that the taxpayer is entitled to the exemption is not sufficient in the absence of a Medicare Entitlement Statement.
When practitioners are assisting clients in applying for a Medicare Entitlement Statement the following things should be kept in mind to avoid unnecessary delays in processing:
- Make sure you use the current form on the Department of Human Services website as old forms won’t be accepted;
- Send certified copies of supporting documents with the form;
- Check that documents are in a PDF file and not password-protected;
- Send separate emails for each client; and
- Send one email for a client who has multiple applications for different claiming periods.
Given the high volume of applications received between July and November it can take up to six weeks for applications to be processed.
Medicare levy exemption
You may be exempt from paying the Medicare levy if you:
- meet certain medical requirements
- are a foreign resident
- are not entitled to Medicare benefits.
If you have any dependants, you need to consider their circumstances as well as your own to determine if you qualify for an exemption.
To find out more about Medicare Levy exemption and the relevant information regarding the entitlement statement, come and speak to us Tax Ideas Accountants & Advisers…https://taxideas.com.au/booking/ Tel: (02) 8318 1545