How is the health levy of 2% applied to all income when declaring total income on the tax return ( form 11 ). I earn employment income and rental income from property. However, I have a loss when I offset my rental costs against my rental income. I notice on form 11 ( tax return ) that the health levy is also applied against a rental loss in prior years. How does this work if you have a cumulative loss brought forward from prior years, say 2004 and 2003?