why do i have to pay medicare levy

The reason for paying the Medicare levy is to help fund Australia's public healthcare system, Medicare. The levy is generally 2% of your taxable income and is paid by most Australian taxpayers in addition to their income tax. This contribution supports Medicare services, which provide free or subsidized hospital care, treatments, and medications to Australian residents. Some low- income earners, foreign residents, or those with special exemptions may pay a reduced rate or no levy at all. The levy is calculated when you file your annual tax return and is typically withheld by employers through the pay-as- you-go system.