House of Representatives

Tax and Superannuation Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Bill 2016

Explanatory Memorandum

(Circulated by authority of the Treasurer, the Hon Scott Morrison MP)

General outline and financial impact

Medicare levy and Medicare levy surcharge low-income thresholds

The 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 low-income thresholds for individuals and families (along with the dependent child/student component of the family threshold) in line with movements in the consumer price index (CPI);
increase the Medicare levy low-income threshold for individual taxpayers and families eligible for the seniors and pensioners tax offset, in line with movements in the CPI; and
increase the Medicare levy surcharge low-income threshold in line with movements in the CPI.

Date of effect: This measure applies to the 2015-16 income year and later income years.

Proposal announced: This measure will be announced in the 2016-17 Budget on 3 May 2016.

Financial impact: This measure has the following revenue impact ($m):

2015-16 2016-17 2017-18 2018-19 2019-20
0 -100 -60 -60 -60

Human rights implications: This Bill does not raise any human rights issue. See Statement of Compatibility with Human Rights - Chapter 2, paragraphs 2.1 to 2.5.

Compliance cost impact: This measure will not have any ongoing compliance cost or additional impact on regulatory burden.

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