Tax and Medicare levy
#1
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Joined: Jun 2005
Location: Wymondham, Norfolk
Posts: 103
Tax and Medicare levy
Hi all,
Have just found out that if you earn more than 50K a year then you are charged a medicare levy. Is this correct and if so, does it come out of your weekly tax. What I mean is, my husband earns $1045 gross a week and is taxed $243. Is this a higher tax charge because it includes the levy or are we going to be stung with an additional bill at year end.
Any help would be greatly appreciated
Emma
Have just found out that if you earn more than 50K a year then you are charged a medicare levy. Is this correct and if so, does it come out of your weekly tax. What I mean is, my husband earns $1045 gross a week and is taxed $243. Is this a higher tax charge because it includes the levy or are we going to be stung with an additional bill at year end.
Any help would be greatly appreciated
Emma
#2
Re: Tax and Medicare levy
Hi all,
Have just found out that if you earn more than 50K a year then you are charged a medicare levy. Is this correct and if so, does it come out of your weekly tax. What I mean is, my husband earns $1045 gross a week and is taxed $243. Is this a higher tax charge because it includes the levy or are we going to be stung with an additional bill at year end.
Any help would be greatly appreciated
Emma
Have just found out that if you earn more than 50K a year then you are charged a medicare levy. Is this correct and if so, does it come out of your weekly tax. What I mean is, my husband earns $1045 gross a week and is taxed $243. Is this a higher tax charge because it includes the levy or are we going to be stung with an additional bill at year end.
Any help would be greatly appreciated
Emma
#3
Re: Tax and Medicare levy
Hi all,
Have just found out that if you earn more than 50K a year then you are charged a medicare levy. Is this correct and if so, does it come out of your weekly tax. What I mean is, my husband earns $1045 gross a week and is taxed $243. Is this a higher tax charge because it includes the levy or are we going to be stung with an additional bill at year end.
Any help would be greatly appreciated
Emma
Have just found out that if you earn more than 50K a year then you are charged a medicare levy. Is this correct and if so, does it come out of your weekly tax. What I mean is, my husband earns $1045 gross a week and is taxed $243. Is this a higher tax charge because it includes the levy or are we going to be stung with an additional bill at year end.
Any help would be greatly appreciated
Emma
Is you husbands income the only family income? If so the medicare levy surcharge does not apply.
But for an example
Single person 54340 per annum will pay the normal medicare levy of 1.5% (on each banding of tax, eg if you are in the 30% band you actually pay 31.5%) in their normal tax deduction of PAYG (Pay As You Go) each pay period. At the end of the tax year - June 30th - you are then asked to submit a tax return. When you submit that you will be making the declaration that you have or have not private medical insurance. If you have been covered for the whole of the previous year no further charges are made. If as a single person (50K limit, family limit changes slightly depending on number of children from 100K up) you have no cover you will then be asked to pay a further 1% medicare levy surcharge on all your taxable income and will be either sent a bill for the extra or have it offset against any rebate you were due.
http://www.ato.gov.au/individuals/pa...pc=001/002/030
On a $100,000 pa - you could be paying $1000 - some families try and get hospital cover and use what they would have been charged as medicare levy surcharge as a sort of offset against the cost. It is a personal decision.
Cheers Sandra