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HandiTax - Items to check when the Medicare levy surcharge amount is different from the ATO calculation?

Updated over 3 weeks ago

Main form I: Medicare levy surcharge M2

M2 label E - Were you, your spouse and all dependants covered for whole year? Answer Y for Yes or N for No.


If Yes, you must enter private health insurance policy details.

M2 label A - Enter the Number of days NOT liable for the surcharge - 0 to 365 (leap year 0 to 366).

Write at A item M2 the number of days for which you do not have to pay MLS.

If you do not have to pay Medicare levy surcharge (see exemption category) for any days during the period 1 July 2021 to 30 June 2022, write 365 at label A.

If you have to pay Medicare levy surcharge for:

  • the whole period 1 July 2021 to 30 June 2022, write 0 at label A.

  • part of the period 1 July 2021 to 30 June 2022, write at label A the number of days for which you do not have to pay Medicare levy surcharge.

Notes:

  • M2 is a compulsory field and must always be completed.

  • The ATO will charge a Medicare surcharge regardless of taxable income if M2 is not completed.

  • If M2 label A is completed incorrectly, the estimate will be different from the Notice of Assessment.

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