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.