Medicare levy
A 2% levy on most taxable income that funds public health.
The Medicare levy is an extra 2% charged on most of your taxable income to help fund Australia’s public health system. It sits on top of income tax. Low-income earners pay a reduced levy or none, and higher earners without private hospital cover may also pay the separate Medicare levy surcharge.
Try the income tax →Grounded in ATO guidance. General information, not tax advice.
Related terms
Marginal tax rate
The tax rate on your next dollar of income.
Tax-free threshold
The first $18,200 of income you can earn tax-free.
CGT discount (50%)
Hold an asset over 12 months and only half the gain is taxed.
Franking credits
A credit for company tax already paid on your dividends.
← Back to the full glossary.
Let Fin handle the jargon for you
Connect your bank and Fin sorts your income, expenses and GST automatically — so terms like this just become numbers that are already worked out. Free to start, no card needed.
Get 2Fin free →