The Medicare levy is the amount (2% of your taxable income) that is used to add up to the fund that will be used in Australia’s public health system which is known as Medicare. This 2% is in addition to the tax that is paid on the taxable income of individuals living in Australia. Depending on your circumstances, it might be possible for you to get an exemption or reduction in the amount of Medical Levy that you have to pay. In case you need an exemption or a reduction on the Australian Medical Levy, you need to separately consider your eligibility for this purpose.