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Medicare Levy Exemption for Defence Force Members

Medicare Levy Exemption for Defence Force Members

Medicare gives Australian residents access to health care. It is partly funded by taxpayers who pay a Medicare levy of 2% of their taxable income.

As a member of the Australian Defence Force you are entitled to full free medical treatments for all conditions under defence force arrangements or Veterans’ Affairs Repatriation Health Card (Gold Card).

Full Medicare Levy Exemption

To claim a full Medicare Levy exemption you must meet the following conditions:

  • You had no dependants
  • Each of your dependants (including your spouse) either:
    • Was in one of the exemption categories or
    • Had to pay the Medicare levy
  • You had dependent children who were not in an exemption category but who were also dependants of your spouse, and your spouse had to pay the Medicare levy.

Half Medicare Levy Exemption

In some circumstances you won’t be entitled to the full Medicare levy exemption but you will be able to claim a half exemption.  These include:

  • You had at least one dependant (for example, a spouse) who:
    • was not in an exemption category
    • did not have to pay the Medicare levy (for example, because their taxable income was below the lower Medicare levy threshold
  • You had a spouse who was also a defence force member and you had a dependent child who:
    • was not in an exemption category, and
    • was dependent on both of you.

In this case, either you or your spouse can claim a full exemption and the other can claim a half exemption by completing a family agreement.

 

You can find a full explanation of the Medicare Levy exemption rules here.

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