14 Oct 088 Medicare Levy Surcharge Thresholds Bill (No 2) 2008 passed by HouseOn 13 October 2008, Tax Laws Amendment (Medicare Levy Surcharge Thresholds) Bill (No 2) 2008 was passed by the House of Representatives without amendment. The Bill was introduced into the House on 25 September 2008 following the defeat, in the Senate, of Tax Laws Amendment (Medicare Levy Surcharge Thresholds) Bill 2008: see 2008 TAXVINE No 38 (17) (26 September 2008).
This Bill amends the Medicare Levy Act 1986 and the A New Tax System (Medicare Levy Surcharge-Fringe Benefits) Act 1999 to:
- increase the Medicare levy surcharge threshold for individuals from $50,000 to $75,000, and going forward this threshold will be annually indexed to wages and increase in $1,000 increments (rounding down);
- increase the Medicare levy surcharge threshold for families from $100,000 to $150,000, and going forward will be double the single threshold; and
- introduce transitional arrangements so that individuals who obtain appropriate private health cover before 1 January 2009 will avoid the Medicare levy surcharge for the period 1 July 2008 through to 31 December 2008.
The increased Medicare levy surcharge thresholds apply from the 2008-09 year of income and later years of income.
The Bill now proceeds to the Senate.
For a copy of the Bill, go here.
For a copy of the Explanatory Memorandum, go here.