Fed: ATO reassures on Medicare surcharge

AAP General News (Australia)
12-26-2000
Fed: ATO reassures on Medicare surcharge
(Eds: Please ignore this story which was sent out on this wire at 22:10 by mistake. It
is due to be released at 03:30 December 27)





The Australian Tax Office has moved to reassure thousands of people who may have
incorrectly claimed exemption from the Medicare surcharge in their last tax return.

A spokeswoman from the ATO says an estimated 50,000 people who may have wrongly claimed
the exemption should not panic.

She says although many will eventually be asked to pay the ATO if they had claimed
the exemption but were not eligible for it, the first request would probably be for more
details of their private health policy.

Should the exemption have been incorrectly claimed, the average amount to be paid would be $690.

People with the wrong kind of health insurance - a package that doesn't provide private
patient hospital cover - and those whose income is above the $50,001 income threshold
aren't entitled to the exemption.

The ATO has blamed the high mistake rate on the assumption that basic health insurance
is enough to qualify for an exemption from the surcharge.

But National Tax and Accountants Association president RAY REGAN says the chief culprit
is the ATO's Tax Pack, which doesn't properly explain the eligibility criteria.

AAP RTV kjp/jx

KEYWORD: MEDICARE (CANBERRA)

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