Unpacking the Medicare levy: The tax that keeps our health system afloat

June 28, 2026 — 5:00am

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If you looked in your wallet right now, I reckon I could pretty comfortably guess your top five most-used cards (unless you’re one of those freaks who only use their phones to pay for things). Debit/credit, public transport, some form of loyalty card, driver’s licence, and your Medicare card.

That little green rectangle is something nearly every Australian totes around with them, ready to flash it at the doctor’s office while you cross your fingers this appointment might get bulk billed.

It, and our broader (and quite good) healthcare system is something a lot of us might take for granted, but we really shouldn’t. Medicare is considered one of the better healthcare systems in the world, with a report in 2024 placing us third only to Norway and the Netherlands, and they don’t even have good beaches.

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However, what a lot of us also fail to understand is how this wondrous healthcare system is funded, and it’s thanks to the Medicare levy. This is a 2 per cent tax paid by almost every........

© The Sydney Morning Herald