ATO targets false Medicare exemptions

A recently announced ATO initiative will target individuals who are falsely claiming an exemption on the Medicare levy.

Using metadata matching technology, the ATO will aim to ensure that individuals are meeting their tax obligations.

The program is also predicted to identify a number of individuals who do qualify for the exemption, but have not yet received it.

Approximately 130 000 Australians qualify for the exemption.

The Department of Human Services will provide the ATO with the data necessary for them to identify people who do qualify for the exemption in the 2013-14 and 2014-15 financial years.

The ATO also believes that it will identify individuals who are attempting to avoid the Medicare levy surcharge.

The Medicare levy increased from 1.5% to 2% this year to help fund the NDIS, and the Medicare levy surcharge is calculated at 1-1.5% of total income.

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