Commonwealth Numbered Acts

MEDICARE LEVY ACT 1986 No. 110, 1986 - SECT 8

8. (1) Where a person-

   (a)  is a legally married person on the last day of the year of income; or

   (b)  is entitled to-

        (i)    a rebate under section 159J of the Assessment Act in respect of
               a person included in class 2 in the table in sub-section 159J
               (2) of that Act; or

        (ii)   a rebate under section 159K or 159L of that Act,
in respect of the year of income, and the family income in relation to the
person does not exceed the family income threshold in relation to the person,
no levy is payable by the person upon the taxable income of the person.

(2) Subject to sub-section (3), where a person (in this sub-section referred
to as the "relevant person")-

   (a)  was a legally married person on the last day of the year of income; or

   (b)  is entitled to-

        (i)    a rebate under section 159J of the Assessment Act in respect of
               a person included in class 2 in the table in sub-section 159J
               (2) of that Act; or

        (ii)   a rebate under section 159K or 159L of that Act,
in respect of the year of income, and the family income in relation to the
relevant person exceeds the family income threshold in relation to the
relevant person, the amount of the levy payable by the relevant person upon
the taxable income of the relevant person but for this section and section 9
shall be reduced by the amount (if any) calculated in accordance with the
formula A-(0.18855 (B-C)), where-
A is 1.145% of the family income threshold in relation to the relevant person;
B is the family income in relation to the relevant person; and
C is the family income threshold in relation to the relevant person.

(3) Where-

   (a)  but for this sub-section, the amount of levy payable by a person upon
        the taxable income of the person but for this section and section 9
        would be
reduced by an amount (in this sub-section referred to as the "reduction
amount") ascertained in accordance with sub-section (2);

   (b)  the person was a legally married person on the last day of the year of
        income; and

   (c)  but for this section and section 9, the spouse of the person would be
        liable to pay levy upon the taxable income of the spouse, the
        reduction amount shall, subject to sub-section (4), be reduced by so
        much of the reduction amount as bears to the reduction amount the same
        proportion as the amount of the taxable income of the spouse bears to
        the family income in relation to the person.

(4) Where-

   (a)  sub-section (3) applies for the purposes of ascertaining the levy
        payable by a person upon the taxable income of the person but for
        section 9; and

   (b)  the amount of the reduction of that levy ascertained in accordance
        with sub-sections (2) and (3) exceeds the amount of the levy payable
        by the person upon the taxable income of the person but for this
        section and section 9, the amount of levy payable by the spouse of the
        person upon the taxable income of the spouse but for this sub-section
        and section 9 shall be reduced by the amount of the excess.

(5) In this section-

"family income", in relation to a person, means-

   (a)  if the person was a legally married person on the last day of the year
        of income-the sum of the taxable income of the person and the taxable
        income of the spouse of the person; and

   (b)  in any other case-the taxable income of the person;

"family income threshold", in relation to a person (in this definition
referred to as the "relevant person"), means $13,370 increased by $1,660 for
each person included in class 3 or class 4 in the table in sub-section 159J
(2) of the Assessment Act in respect of whom-

   (a)  in a case to which paragraph (b) does not apply-the relevant person;
        or

   (b)  if the relevant person was a legally married person on the last day of
        the year of income-the relevant person or the spouse of the relevant
        person,
would, but for sub-section 159J (1A) of the Assessment Act, be entitled to a
rebate of tax under section 159J of the Assessment Act in respect of the year
of income.
(6) In the application of the definition of "family income threshold" in
sub-section (5) in determining the family income threshold in relation to a
person in relation to a year of income, being a person who was not a legally
married person on the last day of the year of income, the amount of $13,370
referred to in that definition shall not be increased on account of another
person unless family allowance under Part VI of the Social Security Act 1947
was payable to the first-mentioned person in respect of that other person in
respect of the whole or any part of the year of income.