Full exemption
A full exemption can generally apply for eligible days when you meet the Gold Card medical condition and have no dependants, or when the relevant dependant conditions for a full exemption are met.
Watch — veterans and the Medicare levy
Do Veterans With a Gold Card Pay the Medicare Levy?
A Veteran Gold Card can place you in the medical exemption category, but the number of eligible days and whether the exemption is full or half depend on your circumstances.
What this video covers
- Why entitlement to full treatment for all conditions is the relevant starting point
- Why the exemption must be limited to the days you were eligible
- How a spouse or dependent children can change a full exemption to a half exemption
- Why the Medicare levy surcharge and private health cover remain separate questions
Full and half exemptions are different
Your own medical entitlement is only the first part of the calculation.
Half exemption
A half exemption may apply where you are medically exempt but a dependant is neither exempt nor required to pay the Medicare levy. It reduces the levy; it does not halve your income tax.
Information needed for an accurate claim
Check the exact dates and household details for the income year rather than relying on the card alone.
Entitlement dates
Confirm the date the Gold Card entitlement began and whether it covered the entire income year.
Partner details
Your spouse’s exemption status and whether they had to pay the Medicare levy can affect whether your exemption is full or half.
Dependent children
Dependent children can change the outcome, including where a family agreement may be relevant.
Supporting documents
Provide DVA entitlement information and any Medicare levy exemption details shown in MyService or on a DVA statement.
Common Gold Card Medicare levy questions
Does every Gold Card holder receive a full Medicare levy exemption?
Not automatically. A Gold Card can satisfy the medical category, but partners, dependent children and the eligible days determine whether the final exemption is full or half.
Does a half exemption halve my income tax?
No. It reduces the Medicare levy calculation for the eligible period; it does not halve your taxable income or ordinary income tax.
Does a DVA White Card establish the same exemption?
A White Card covers specified conditions and does not by itself establish the all-conditions medical entitlement used for this Gold Card exemption. Check your actual entitlement and the ATO rules.
Video transcript
The supplied transcript has been lightly edited for punctuation, clarity, names and Australian spelling.
Have a DVA Gold Card but still paying the Medicare levy? You may qualify for a full or half exemption, but having a Gold Card does not automatically mean every member of your household is exempt. Your entitlement dates and family circumstances matter.
The relevant condition is entitlement to full free medical treatment for all conditions under your Veterans’ Affairs Gold Card. That can qualify you for the medical exemption category. You do not have to remain a serving ADF member to qualify through your Gold Card.
Here is the simplest example: you meet the Gold Card medical condition and have no dependants. You can generally claim a full Medicare levy exemption for the eligible days. If your entitlement started partway through the year, do not automatically claim the entire year. Check the actual dates, including any other exemption you qualified for.
If you have a partner or dependent children, the answer needs another check. For example, if your only dependant is your spouse and they have to pay the Medicare levy, you can generally qualify for a full exemption. But if that spouse is neither exempt nor required to pay the levy, a half exemption may apply instead. Children can also affect the result. Your Gold Card does not automatically extend your tax exemption to your family.
A half exemption reduces the Medicare levy. It does not halve your income tax. A DVA White Card, which provides more limited treatment coverage, does not by itself establish this Gold Card exemption. The Medicare levy surcharge is also a separate question. Have your circumstances checked before changing private health cover.
Give your accountant your DVA entitlement information and Medicare levy exemption certificate, if available, along with your spouse’s income and dependant details. Check MyService for your tax documents or contact DVA if you need confirmation of your entitlement dates.
Have a Gold Card and are unsure whether your Medicare levy is correct? Book a review with DefenceTax. Visit defencetax.com.au or call 0418 327 096. Book with Garry Angus at DefenceTax today for specialist veteran tax support.
General information only. Tax treatment depends on the applicable law, relevant dates, supporting records and your individual circumstances.