In a media release issued on 1 May 2013, the Prime Minister, Julia Gillard, announced that the Government will increase the Medicare levy by half a percentage point from 1 July 2014. This will take the Medicare levy from 1.5% of taxable income to 2%.
The change to the Medicare levy will raise approximately $3.3 billion in the first year, and $20.4 billion between 2014-15 and 2018-19, when the full national disability scheme comes into place.
Every dollar raised by the levy will go directly to fund DisabilityCare Australia. To ensure this, the Government will create in legislation a special DisabilityCare Australia Fund, through a dedicated special account. Revenue from the additional levy will be paid into the fund, which will only be drawn down to meet expenditure directly related to DisabilityCare.