Question: Why the Medicare Levy does not reduce when client is only a resident for 10 months? Note: The tax payable has adjusted just not the medicare.

Answer:  Please fill M1V or M1W in this case. It will reduce medicare levy. Learn more from the ATO HERE


Note: If taxable income is less than $39,402 then Medicare levy is reduced to $0. Both ITRs’ income is less than this amount. 

https://www.ato.gov.au/Individuals/Medicare-and-private-health-insurance/Medicare-levy/Medicare-levy-reduction---family-income/