House debates Tax Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Bill 2009

Second Reading

Thursday, 4 June 2009 House of Representatives

Chris Bowen

Chris Bowen Prospect, Australian Labor Party, Assistant Treasurer

1:04 pm

in reply—I would like to thank all members who have contributed to this debate. The Tax Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Bill 2009 increases the Medicare levy low-income thresholds for individuals and families in line with increases in the consumer price index. The individual threshold amount is to be increased from $17,309 to $17,794. The family income threshold is to be increased from $29,207 to $30,025. The Medicare levy low-income threshold for pensioners below pension age is also increased to ensure that where these pensioners do not have a tax liability they do not have a Medicare levy liability. The low-income threshold and the Medicare levy surcharge provisions are similarly increased.

These changes ensure that low-income individuals and families will continue to be exempt from the Medicare levy or surcharge. The amendments to the Medicare levy low-income thresholds apply to the 2008-09 year of income and later years of income. Indexation of Medicare has enjoyed bipartisan support for a number of years, and I acknowledge the support of the opposition, as outlined by the member for Casey today. Full details of the measures in this bill are contained in the explanatory memorandum. I again thank those who have contributed and commend the bill to the House.

Question agreed to.

Bill read a second time.

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