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):
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.