What is the Medicare Levy and who pays it?

The Medicare Levy is a tax imposed by the Australian government to fund the healthcare system called Medicare. It is levied on the taxable income of Australian residents and certain foreign residents who meet specific criteria. This levy contributes towards the costs of a wide range of healthcare services, such as doctor consultations, hospital treatments, and subsidized medications. The rate of the Medicare Levy varies depending on income, and it typically equates to 2% of taxable income. However, some individuals may be eligible for exemptions or reductions depending on their income level, specific circumstances, or if they hold private health insurance. Non-residents for tax purposes are generally not required to pay the Medicare Levy.