I don”t understand how Family Reduction amount for medicare levy works- I thought it only applies when one spouse has taxable income over $21,655 and the other does not (as per page 12), however the solution for Q1.4(b) shows that the medicare levy is nil, after deducting the family reduction amount, even though both the incomes are more that $21,655. As per my workings, medicare levy payable is $134.50 for both. Please help.