Important change to Medicare Levy deduction

In previous financial years including the 2010/2011 year, ESSSuper has used the 15% superannuation pension tax offset (where eligible) to reduce or eliminate the Medicare Levy payable on pensions.

This practice has meant that a number of pensioners have been required to pay the Medicare Levy to the Australian Taxation Office (ATO) when their annual income assessment has been made.

On instruction from the ATO and to prevent members from incurring a Medicare Levy debt, ESSSuper is applying the 1.5% Medicare Levy from the first pension payable in the 2011/2012 financial year on 7 July.

A reduction in the Medicare Levy payable can be offset against any available tax offset via your 2011/12 tax return.