12 May 11 Medicare Levy and Medicare Levy Surcharge Bill introduced into Parliament
Tax Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Bill 2011 was introduced into the House of Representatives on 12 May 2011. The following is extracted 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 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 consumer price index.
Date of effect: The increased Medicare levy and Medicare levy surcharge low-income thresholds apply from the 2010-11 income year and later income years. The increased thresholds, which reflect changes in the consumer price index, ensure the relevant taxpayers do not incur a liability to the Medicare levy or Medicare levy surcharge. There are no adverse effects on taxpayers.
Debate on the Bill was adjourned.