Date: 5 April 2024 – 23 April 2024
The Australian Government is consulting on a measure from the 2023–24 Budget to exempt eligible lump sum payments in arrears from the Medicare levy from 1 July 2024.
This measure will ensure low‑income taxpayers do not pay higher amounts of the Medicare levy as a result of receiving an eligible lump sum payment. For example, as compensation for underpaid wages.
To qualify for relief, taxpayers must:
- be eligible for a reduction in the Medicare levy in the 2 most recent years, or income year, to which the lump sum accrues,
- satisfy the eligibility requirements of the existing lump sum payment in arrears tax offset, including that a lump sum accounts for at least 10 per cent of the taxpayer’s income in the year of receipt.
Further information about the consultation can be accessed here.
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