Low income Medicare levy question

[GreatPig]

This is just a curiousity question really.

Does someone earning less than $6K a year, and thus on a 0% marginal tax rate, still have to lodge a tax return and pay the 1.5% Medicare levy on their income?

Assume it's just basic employer PAYG income, not due to a pile of tax deductions, depreciation, etc.

Edit: okay, just realised they'd want to do a tax return to claim their tax back, but would they still have to pay the Medicare levy? Or if someone got an untaxed trust distribution of less than $6K, and it was their only income, would they need to do a tax return (if not, then no Medicare levy)?

Cheers,
GP

 

[Raddles]

WORKSHEET: Working out your basic Medicare levy

COLUMN 1
COLUMN 2
COLUMN 3

Eligible for the senior Australians tax offset
Eligible for the pensioner tax offset
Not eligible for either of those tax offsets

When your taxable income (from TAXABLE INCOME OR LOSS on your tax return) is below a specified lower threshold, you pay no Medicare levy.

Lower taxable income threshold

(a)
$ 25,867
$ 22,922
$ 17,309

If your taxable income is equal to or less than your threshold at (a), you pay no Medicare levy.

When your taxable income is above a specified upper threshold, you pay Medicare levy at the rate of 1.5% of your taxable income.

 

[GreatPig]

Thanks.

So at $17,310 for the third case, the Medicare levy suddenly jumps from nothing to $259.65.

Cheers,
GP

 

[Rixter]

If your taxable income is equal to or less than your threshold at (a), you pay no Medicare levy.

That will be us - you gotta love property!

 

[letiha]

The limits are even higher for low family incoem - about 38k for 3 kids off the top of my head.

And why wouldn't you want to lodge a return if you have PAYG income - you would recieve all your tax back.