Most working Australians must pay the Medicare levy. It is paid only once per individual even if you have multiple incomes. However, due to the method used to assess the levy, it can leave the impression it is paid twice. That is not correct.
The Medicare levy is assessed for individuals in the following way:
- Tax instalments, which include a Medicare levy component, are deducted from your regular income such as your fortnightly DFRDB pension payments
- Your tax instalment amount is determined by your estimated known taxable income for the financial year
- Tax instalments collected in the financial year are assessed against your tax return to determine if you receive a tax refund or must pay further tax.
DFRDB cannot tell you how much Medicare levy is deducted from your fortnightly pension payment; please contact the Australian Taxation Office for that information.