The Medicare levy helps fund Australia’s public health system, Medicare. This levy is 2% of your taxable income. You may qualify for a reduction or exemption from the levy based on your income and circumstances, which are considered separately for you and your spouse. The Australian Taxation Office calculates your Medicare levy when you file your tax return. Pay-as-you-go withholding from your salary or wages generally includes an amount to cover the levy.

You can use the Medicare levy calculator to work out your Medicare levy, this is available on the ATO website.