On 13 May 2010, Tax Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Bill 2010 was introduced into the House of Representatives. The following is an extract from the Explanatory Memorandum.
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. These increases are in line with movements in the consumer price index; 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 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 consumer price index.
Date of effect: The increased Medicare levy and Medicare levy surcharge low-income thresholds apply from the 2009-10 income year and later income years.
This measure was announced by the Treasurer in the 2010-11 Budget.