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46 INDIVIDUAL TAX RETURN INSTRUCTIONS 2014Medicare levy reduction or exemptionAustralian residents for tax purposes are subject to a Medicare levy of of their taxable income unless they qualify for a reduction or you were not an Australian resident for tax purposes for all of 2013 14, you are exempt from the Medicare levy. Claim your exemption at Part B of this the meaning of Australian resident for tax purposes, see Definitions on page Medicare levy reduction is based on your taxable income. A Medicare levy exemption is based on specific categories. You need to consider your eligibility for a reduction or an exemption A Medicare levy reductionAnswering this questionYour eligibility for a Medicare levy reduction is based on your taxable income, your spouse s taxable income and the number of dependent children you taxable income must be equal to or less than the relevant upper threshold in table 1 for you to qualify for a reduction. If your taxable income is equal to or less than the relevant lower threshold, you do not pay the Medicare will work out any reduction for 1Individual taxable income thresholdsEligible for seniors and pensioners tax offsetAll other taxpayersLower$32,279$20,542Upper$37,975 $24,167If you were single and you had no dependent children during the income year, go to Part B Medicare levy dependent child is any child who was an Australian resident whom you maintained in 2013 14 and whose adjusted taxable income was less than

48 INDIVIDUAL TAX RETURN INSTRUCTIONS 2014 M1 Medicare levy reduction or exemption Category 3: Not entitled to Medicare benefits In 2013–14: did you have a Medicare levy exemption certificate because you were a temporary resident for Medicare purposes, or were you a member of a diplomatic mission or consular post in Australia (or a member of such

  Australia