ginstwin

Quick tax return question.
My daughter is here on a working visa and is just about to get issued her 457.

I am trying to help her fill out her tax return. Its pretty simple as she has income earned and basically nothing else.

There is a question relating to Medicare and the Levy that i dont understand.

It asks if she is in an exempt categorie.

She is a UK citizen so i think i type that she is exempt as she is not an Australian citizen.

Is that correct?

JAJ

She needs an exemption letter from Medicare to claim exemption from the levy, as far as I know (check the ATO website).

Entitlement to reciprocal Medicare is not based on nationality.

ginstwin

Appreciate the quick reply.

I think you are right.

Rereading it i dont think she is exempt.

I was a bit confused as it mentioned Australian citizens etc but i think as she has reciprocal benefits from Uk she is not exempt from levy.
Thanks

quoll

Does she consider herself a foreign resident?

http://www.ato.gov.au/individuals/co...tent/29089.htm

ginstwin

She is filling as a resident as its much more beneficial to her. As a non res her tax rate is 30% plus but as a res she is way below that.

Sandra

She is not exempt from standard Medicare levy in her circumstances.

Exemption from Medicare levy surcharge is based on private medical cover but only kicks in on much higher incomes so do not think this should be an issue for you.

ginstwin

Sandra

Much appreciated. Fully understood.

Thanks for the reply.