Top Considerations When Lodging Tax Returns Online
Private health insurance
Benefit code
Private health insurance statement
Zone offset
PAYG instalments
Medicare levy exemption
Medicare Levy Exemptions apply to:
- Category 1: members of the defence forces who are entitled to full free medical treatment under defence force arrangements, full-time members of the defence force reserves (for days in continuous full-time service), a person who is entitled to free medical expenses under Veteran’s Affairs (gold card holders), a person who received sickness allowance from Centrelink (for the days receiving the benefit), Note: New claims for sickness allowance ceased from 20 March 2020, and a person who qualifies as a blind pensioner – who hold a non-income tested health card
- Category 2: a person who qualifies as a non-resident for tax purposes
- Category 3: holders of a certificate from the Medicare Entitlement Statement Unit of Medicare Australia showing that the taxpayer is not entitled to Medicare benefits.
You may qualify for the Half Levy Exemption if:
- You were in exemption category 1 and you satisfied either of the following conditions:
- You had at least one dependent (for example, a spouse) who was not in an exemption category and who did not have to pay the Medicare levy (for example, because they were a low income earner).
- Your spouse was in exemption category 1 and you and your spouse had a child who was a dependent of both of you and was not in an exemption category. In this case, either you or your spouse can claim a full levy exemption and the other can claim a half levy exemption.
Excepted person
You are an excepted person (if under 18 years of age) and will be taxed at normal resident rates if any of the following applies to you:
- You were working full-time or had worked full-time three months or more in the tax year (ignoring full-time work that was followed by full-time study)
- AND
- were intending to work full-time for most of the tax year and not study full-time.
- You were entitled to a disability support pension or a rehabilitation allowance, or someone was entitled to a carer allowance to care for you.
- You were permanently blind.
- You were disabled and were likely to suffer from that disability permanently or for an extended period.
- You were entitled to a double orphan pension and you received little or no financial support from your relatives.
- You were unable to work full-time because of permanent mental or physical disability and you received little or no financial support from your relatives.
Eligible income (not an excepted person)
Eligible income is an income that is not excepted income. Special rules apply to persons under 18 years of age, and are not an excepted person, who earn eligible income. If you are not an excepted person, some or all of your income may still be classified as excepted income and will be taxed at ordinary rates. Your excepted income is generally income that you earned from working. Trust income and other "unearned" income (e.g. interest, dividends, or capital gains received from a gift) are NOT considered to be excepted. To calculate excepted net income, determine the sum of the following types of income:
- Employment Income
- Taxable pensions or payments from Centrelink or the Department of Veteran's Affairs
- A compensation, superannuation, or pension fund benefit
- Income from a deceased person's estate
- Income from property transferred to you as a result of another's death or family breakdown, or to satisfy a claim for damages for an injury you suffered.
- Income from your own business
- Income from a partnership in which you were an active partner
- Net capital gains from the disposal of any of the property or investments referred to above
- Income from investment of amounts referred to above
- Then, subtract any deductions relating to the income. The remainder is your excepted net income.
Under 18
How much $0 net taxable is eligible income?
Under 18 > How much of your net taxable income of $[0.00] is eligible income?
Some or all of your income may be excepted income. This means it is taxed at the same rates as if you were an adult. Your excepted income includes your employment or business income, Centrelink payments, compensation, superannuation or pension fund benefits and income from a deceased person's estate. The remainder of your income is eligible income.
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