25 May 06 Medicare Levy and Medicare Levy Surcharge Bill introducedOn 25 May 2006, Tax Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Bill 2006 was introduced into the House of Representatives.
The Bill amends the Medicare Levy Act 1986 to:
- increase the Medicare levy low income thresholds for individuals and families. The dependent child/student component of the family threshold will also be increased. The increases are in line with movements in the consumer price index (CPI); and
- increase the Medicare levy low income threshold for pensioners below age pension age so that they do not have a Medicare levy liability where they do not have an income tax liability.
The Bill also amends the A New Tax System (Medicare Levy Surcharge-Fringe Benefits) Act 1999 to increase the Medicare levy surcharge low income threshold in line with movements in the CPI.
The increased Medicare levy and Medicare levy surcharge low income thresholds apply from the 2005-06 year of income and later years of income. This measure was announced in the 2006-07 Budget.
For a PDF copy of the Bill, go here
For a PDF copy of the EM, go here