A Noosa resident, who is not an Australian citizen, is out of pocket by hundreds of dollars because the Australian Taxation Office (ATO) says she must pay a Medicare Levy even though she is not able to access the Medicare healthcare system.
The woman who has lived in Noosa for a number of years with her Australian partner correctly named her spouse, who is a full time worker and not a dependant, on her tax return and as a result was taxed a Medicare Levy of almost $800.
The woman contacted the ATO about the issue and was told she would have to pay the levy despite being unable to use the service.
“This is a frustrating situation for us, as we are effectively being asked to pay for a service that she cannot use,“ the couple said.
“We believe that the current policy is unfair and unreasonable, and that it is causing unnecessary hardship for many people in similar situations.
“It is important that our taxation system is fair and equitable, and that it does not impose unnecessary burdens on those who are already facing significant challenges.“
The situation is not unique to the woman as she is aware of other foreign nationals in the area who have encountered the same situation.
In a statement the ATO said: “by law, if an individual has a Medicare Entitlement Statement from Services Australia, they may still need to pay the Medicare levy if their spouse or any of their dependants are not also in an exemption category.
“This means that in some circumstances, an individual that is not a resident for tax purposes may be liable for the Medicare levy if their spouse or other dependants is not in an exemption category. In these circumstances, the Commissioner has no discretion to not apply the Medicare levy. The ATO does not hold data on the number of individuals who pay the Medicare levy but are unable to use Medicare.“
The couple also approached Wide Bay MP Llew O’Brien for assistance.
Mr O’Brien said he was unable to comment on the particulars of individual cases without the express consent of the constituent, but generally speaking when a person asks for assistance, he makes representations to the Minister pointing out the situation and that is what he has done in in this case. Mr O’Brien is yet to receive a response from the Minister.
