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The Medicare Levy Surcharge works like an additional tax and applies to Australian residents for taxation purposes who are high income earners and don't have an appropriate level of hospital cover.he Medicare Levy Surcharge works like an additional tax and applies to Australian residents for taxation purposes who are high income earners and don't have an appropriate level of hospital cover.
Your tax calculation is therefore: 0-$6000 = nil $6001 - $29000 ($23000) @ 15% = $3450 PLUS Medicare levy (29000 x 1.5%) = $435 Tax plus medicare levy ($3450 + $435) = $3885 Profit less tax ($29000 - $3885) = $25115 This is your income for the year after expenses and tax are deducted.