Explanatory Memorandum
(Circulated by the authority of the Deputy Prime Minister and Treasurer, the Hon Wayne Swan MP)General outline and financial impact
Change to the Medicare levy rate
Schedule 1 to the Medicare Levy Amendment (DisabilityCare Australia) Bill 2013 amends the Medicare Levy Act 1986 to increase the Medicare levy rate from 1.5 to 2 per cent of taxable income for the 2014-15 income year and later income years.
Schedule 1 to each of the Fringe Benefits Tax Amendment (DisabilityCare Australia) Bill 2013, the Income Tax Rates Amendment (DisabilityCare Australia) Bill 2013, the Superannuation (Excess Concessional Contributions Tax) Amendment (DisabilityCare Australia) Bill 2013, the Superannuation (Excess Non-concessional Contributions Tax) Amendment (DisabilityCare Australia) Bill 2013, the Superannuation (Excess Untaxed Roll-over Amounts Tax) Amendment (DisabilityCare Australia) Bill 2013, the Income Tax (TFN Withholding Tax (ESS)) Amendment (DisabilityCare Australia) Bill 2013, the Income Tax (First Home Saver Accounts Misuse Tax) Amendment (DisabilityCare Australia) Bill 2013, the Family Trust Distribution Tax (Primary Liability) Amendment (DisabilityCare Australia) Bill 2013, the Taxation (Trustee Beneficiary Non-disclosure Tax) (No. 1) Amendment (DisabilityCare Australia) Bill 2013 and the Taxation (Trustee Beneficiary Non-disclosure Tax) (No. 2) Amendment (DisabilityCare Australia) Bill 2013 incorporate this rate change into other Acts.
Date of effect: This measure applies to the 2014-15 income year and later income years. The amendments to the Fringe Benefits Tax Act 1986 apply to the fringe benefits tax year beginning on 1 April 2014 and later fringe benefits tax years.
Proposal announced: This measure was announced in the Prime Minister's, Deputy Prime Minister and Treasurer's and the Minister for Disability Reform's joint Media Release No. 057 of 1 May 2013.
Financial impact: This measure has the following revenue implications:
| 2013-14 | 2014-15 | 2015-16 | 2016-17 |
|---|---|---|---|
| Nil | $3,300m | $3,850m | $4,200m |
Human rights implications: These Bills do not raise any human rights issues. See Statement of Compatibility with Human Rights - Chapter 2, paragraphs 2.1 to 2.6.
Compliance cost impact: Low.