Liability to Medicare Levy - trustee of deceased estate

Is the Medicare levy imposed under section 251S of the Income Tax Assessment Act 1936 (ITAA 1936) on the income of a deceased estate assessed to the trustee under either section 99 or section 99A of the ITAA 1936?

No. The Medicare levy is not imposed under section 251S of the ITAA 1936 on the income of a deceased estate assessed to the trustee under either section 99 or section 99A of the ITAA 1936.

The taxpayer is the trustee of a deceased estate.

The trustee will be taxable on the income of the trust under either section 99 or section 99A of the ITAA 1936.

Section 251S of the ITAA 1936 provides that the Medicare levy will be imposed upon: • the taxable income of a person (not being a company or person in the capacity of a trustee) who was a resident of Australia at any time during the income year; • the income of a trust estate where the trustee is required to be assessed under section 98 of the ITAA 1936 in respect of a share of the net income to which a resident beneficiary is presently entitled; or • the income of a trust estate (other than a trust estate of a deceased person) where the trustee is required to be assessed under either section 99 or section 99A of the ITAA 1936 in respect of whole or part of the net income of the trust estate.

The Medicare levy is not imposed on taxpayers who do not fall into one of these categories.

The taxpayer is the trustee of a deceased estate who will be taxed under either section 99 or 99A of the ITAA 1936. As the income does not fall into one of the above categories, the Medicare levy will not therefore be imposed on the income of the deceased estate. (Note: As there is no Medicare levy imposed on this income, the Medicare levy surcharge will also not be imposed under the Medicare Levy Act 1986 ).