The coalition supports this bill. This bill increases the Medicare thresholds for individuals and families in line with increases in the consumer price index. The provisions maintain the thresholds for low-income earners. To not provide this indexation would in effect be a tax increase for low-income earners and pensioners. Similar bills have been introduced by the previous coalition government and the current government in every year since 1996-97 and we have always supported these changes in the past.

I thank Senator Cormann for his contribution to the debate and I commend the bill to the Senate.

Question agreed to.

Bill read a second time.