Tax Return and Medicare Levy?
 

Hi

I'm a little puzzled as I've read on here and heard on the TV that the average person usually gets a rebate on their tax return.

However, what I can't understand is how, as the Medicare Levy (standard one) is not charged through your tax that is witheld by your employer.

Am I missing something here? I'm just doing my OH's estimate online and he will owe several over $4000, this is partly from the Medicare Levy which is about $1400, and partly as underpaid tax (he works for 2 different employers, and not enough tax is taken as a result)

Obviously we need to work out any deductions/offsets which will reduce the bill a little but I still don't understand how most people get a rebate when the Medicare levy is not worked out until the end of the year, it would be much better if it was taken throughout the year.

Sam

Re: Tax Return and Medicare Levy?
 

I thought the Medicare levy (at least the 1.5% part) is included in employer tax deductions.

Re: Tax Return and Medicare Levy?
 

Ditto, I get a bill. Problem is nothing to claim for, works van, everything supplied. Just claim for cleaning my clothes. Woopy doo.

Re: Tax Return and Medicare Levy?
 

Same here I know a lot of people who claim for stuff that they don't actually get/use - for instance if you work outsideyou can claim for sunscreen,regardless of whether you actually use it or not. I think that's how most people who end up with refunds manage it - they pay accountants who claim for every possible expense. I can't claim for anything just pay tax as I earn, and I end up with a bill. As you say, woopy doo.

Re: Tax Return and Medicare Levy?
 

No, medicare levy is added on at the end of the year in your tax return. Always get an accountant to do the tax though as you will almost certainly pay too much without one, unless you know the ins and outs of the system.

Re: Tax Return and Medicare Levy?
 

Medicare Levy SURCHARGE is definitely added...but I've generally found that the amount paid directly is equal to about tax + medicare levy based on salary.

Re: Tax Return and Medicare Levy?
 

Presumably he has claimed the tax-free threshold on a Tax File Number Declaration form (question 8) for just one of the employments, and not on the other?

Re: Tax Return and Medicare Levy?
 

Totally agree - medicare levy is included in all PAYG calculations from your employer and if not they are incorrectly applying Tax Rules

Medicare Levy Surcharge is an additional 1% charged on your total income if you do not have private medical insurance - this Surcharge only applies if you exceed certain individual or family income levels and these are reasonably high (check out from ATO website)

I get a refund every year because of specific travel I do, but with one employer per year without travel I would get limited refunds.

My husband is due 11.20 this year and previous it was -4.50 or something.

I think if you are standard employee sometimes it is a shame to pay a student (employeed for the heavy period byt the Tax companies) to do a tax return as they are often not trained at all. And another trick to get your money is that thy say pay a premium fee (extra 20) and they will give you your refund then and there. I have always had my ATO refunds within a week possibly 10 days.

Etax on line is great - but I will clarify my enthusiam for tax, I am a payroll systems consultant so do have a love of the subject

Re: Tax Return and Medicare Levy?
 

Yep, just for the one employer, otherwise we'd definitely have a huge bill to pay!!

Ta

Re: Tax Return and Medicare Levy?
 

OK, I'm still puzzled as if the Medicare levy is included and he has only claimed for the tax threshold from one employer, how come he owes $4000 in this year's tax bill? I guess it must be an underpayment of tax due to the 2 different employers.

However, I work for only one employer and I still owe just under a $1000, on the Medicare levy (not the surcharge) With my deductions I will hopefully bring that amount down but still don't understand why it is not included in the amount I pay in tax each fortnight?

I guess the answer to this is to get ourselves an accountant!!

Thanks for all the replies :D