Ian is an Australian resident taxpayer who derived assessable income of $90,000 and had $5,000 in deductions in the 2020 year. He does not have any private health insurance. What amount of Medicare levy will Ian have to pay?

Question

Quizplus · Accepted Answer

The Medicare levy for Australian residents is calculated at 2% of their taxable income. Ian's taxable income, after deductions, is $85,000 ($90,000 - $5,000), making the Medicare levy $1,700 (2% of $85,000).

Ian Is an Australian Resident Taxpayer Who Derived Assessable Income