What Is The Medicare Levy And How Does It Apply To Me?
The Medicare Levy does not apply to residents of the United States. Legal residents and Citizens of Australia must pay the tax, and the two insurance programs work differently. The Medicare levy in Australia makes sure that all people living within the borders have access to health care. U.S. Citizens typically have Medicare taxes deducted from their paycheck while they are working.
That's Great – How Do I Know if the Medicare Levy Applies to Me?
The Australian government's Medicare website gives details specific to that program. Basically, it does not apply to people who are not permanent legal residents and do not have foreign citizenship. A person on a student visa, for example, will not have to pay this tax. If he needs medical care, it probably helps to have some form of insurance, just as it does in any other country.
The United States, which has its own Medicare program, does not call Medicare taxes a levy, they simply get collected from the FICA taxes that a person pays. This tax is also paid by citizens and permanent legal residents, but Medicare in the United States is given to people on disability and over the age of 65.
Are the Taxes High?
A high price for a Medicare levy often comes in the eye of the beholder. The values of the United States and Australian dollars are not too far apart, although at the time of writing, the Australian dollar is worth slightly more than the U.S. Currency. Most people do not pay more than $200 a year.
Because the FICA taxes comes off of a person's pay check before the worker ever sees them, most people have no idea what their annual rate is. It varies depending on how much money that they earn from year to year.