Medicare Levy Thresholds
- Arnold Shields
- Jun 16, 2010
- 2 min read
Updated: Jun 19
Updated Thresholds for Seniors and Pensioners
From 1 July 2010, the Australian Government increased the Medicare levy low-income thresholds for individuals and couples, particularly those eligible for the Senior Australians Tax Offset (SATO), to ensure those without an income tax liability are not subject to the Medicare levy.
Key Updates:
Single seniors (SATO eligible):
Threshold increases to $30,685 (up from $29,867 in 2009–10)
Phase-in limit increases to $36,100 (up from $35,137)
Certain couples (SATO eligible):
Threshold increases to $44,500 (up from $43,500)
Phase-in limit increases to $52,353 (up from $51,177)
These changes help ensure that low-income senior Australians are not unfairly penalised by the Medicare levy where they don’t otherwise have an income tax obligation.
Updates for the 2009–10 Income Year
For general taxpayers and pensioners below Age Pension age:
Singles: Threshold increases to $18,488 (up from $17,794 in 2008–09)
Families: Threshold increases to $31,196 (up from $30,025)
Per dependent child/student: Increase to $2,865 (up from $2,757)
Pensioners below Age Pension age: Threshold increases to $27,697 (up from $25,299), effective 1 July 2009
These adjustments reflect the government’s effort to keep Medicare levy obligations in line with inflation and cost of living for lower-income earners, especially retirees and families.
Disclaimer:
The information provided in this article is general in nature and does not constitute personal financial, legal or tax advice. While every effort has been made to ensure the accuracy of this content at the time of publication, tax laws and regulations may change, and individual circumstances vary. Dolman Bateman accepts no responsibility or liability for any loss or damage incurred as a result of acting on or relying upon any of the information contained herein. You should seek professional advice tailored to your specific situation before making any financial or tax decision.
