The Medicare levy exemption or reduction letter 008-09020020

This document outlines how and when a Medicare levy exemption or reduction letter is issued and how to reissue the letter when requested by a customer.

Eligibility for Medicare levy exemption or reduction

Customers who are paid, or who were paid Age Pension (Blind) and Disability Support Pension (DSP) (Blind) may be eligible for a Medicare levy exemption or reduction. Services Australia automatically sends a letter to eligible customers at the end of each financial year to advise of possible eligibility.

Dependants and/or partners of eligible customers must qualify in their own right to also be eligible for a Medicare levy exemption or reduction.

Eligibility is determined under the Income Tax Assessment Act. Customers must be directed to visit the Australian Taxation Office (ATO) website if they have any questions regarding the exemption or reduction.

Exemption letter

The Medicare levy exemption, income test free letter (PENMEDI) for Age Pension (Blind) and Disability Support Pension (DSP) (Blind) is automatically sent to identified customers at the end of each financial year. This informs them they may be eligible for a Medicare levy exemption or reduction and the period(s) for which they may be eligible. Letters are issued to the estate of deceased customers.

A customer may request a copy of this letter by phone or in person. The letter can be reissued with the details of the Medicare levy exemption or reduction.

Customers will be advised to attach the letter to their tax return. This assists the Australian Taxation Office (ATO) to determine eligibility for the exemption or reduction.

The Resources page contains contact details for the ATO.