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This dialog is used when calculating the amount of Medicare levy to be included in the estimate of tax payable, based on the number of days full and/or half exemption.

This dialog includes:

Medicare Levy Exemption

Do not enter a number of days if you are a low income earner.

Full Medicare Exemption Part B: Select from the list, the exemption category the taxpayer falls under and enter the number of days for which the taxpayer is claiming the full exemption.

Half Medicare Exemption: Enter the number of days for which the taxpayer is claiming half exemption.

Reduction

Marital Status at 30th June: Enter the one character code for the marital status of the taxpayer at this field. Click [F10] to select from a dropdown list:

  • A Married/de facto at 30/06 of the income year or spouse died during this income year

  • B Sole parent (this is also used for notional purposes - zone rebate base amount)

  • G Entitled to Child-Housekeeper rebate

  • H Entitled to Housekeeper rebate

  • P Pensioner, Married or Separated due to illness

  • G, H and P are non-ATO codes and are used internally during calculations.

Spouse's Taxable Income: This field is applicable only if you had a spouse at 30 June. The Spouse Details dialog (refer to Spouse Details dialog) provides the necessary fields for you to enter the spouse's taxable income. The spouse's taxable income is required for the family income test.

Dependent Children/Students: Enter the number of dependants (children to the age of 21 or students to the age of 25 in full time education) with Adjusted taxable income less than $1786. The number of dependants is required for calculating the Medicare Upper Threshold.

For the Family Reduction to be calculated correctly, you must enter a zero if the taxpayer and spouse have no children.

Medicare

Primary Medicare Payable: The amount displayed is recalculated each time the taxable income is changed.

Medicare Levy Surcharge Payable: This amount is calculated in accordance with the taxpayer's Private Health Insurance status and Adjusted taxable income for Medicare levy surcharge purposes.