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Medicare levy increase

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Medicare levy increase

March 7, 2014
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The Medicare levy will increase from 1.5 per cent to 2 per cent from 1 July 2014.
 

The money raised from this increase will be placed into a National Disability Insurance Scheme (NDIS) fund.
 

Individuals could be affected if they are individual taxpayers, individuals and trustees who are in the pay as you go instalments system, trustees with liabilities or employers with fringe benefits tax impacts.
 

The government is expecting the 0.5 per cent increase to raise $3.2 billion towards funding for the NDIS in the first year. It is estimated that a total of $20 billion will be raised between 2014 and 2019. The increase will see taxpayers who earn $30,000 a year pay an extra 41 cents per day.
 

Low-income earners will continue to receive relief from the Medicare levy through the low income thresholds for singles, families, seniors and pensioners. Current exemptions for the Medicare levy will also continue to be in place, including sickness allowance recipients.
 

All revenue raised from this increase will be paid into the DisabilityCare Australia Fund.
 

For further explanation or information, please contact our friendly and knowledgeable team at Leenane Templeton.
 

Disclaimer.


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