Medicare Levy Threshold Increase: What It Means for You

Good news if you’re on a low income – the Government has raised the income limits for when you start paying the Medicare levy. This means more people won’t have to pay the extra 2% tax on their income unless they earn over a certain amount.

As of 1 July 2024:

• Single people won’t pay the levy unless they earn more than $27,222
• Families have a higher threshold too, with the amount increasing based on the number of dependent kids
• Pensioners and seniors also get a higher limit before the levy kicks in

You’ll see the benefit of this change when you lodge your 2024–25 tax return.

Not sure if these new thresholds apply to your situation? We’re here to help you understand what it means when it’s time to lodge. Reach out to Simmons Livingstone on 1800 618 800 or email admin@simmonslivingstone.com.au.