House of Representatives

Explanatory Memorandum

(Circulated by the authority of the Treasurer, the Hon John, Dawkins, M.P.)

General Outline and Financial Impact

Medicare Levy Low Income Thresholds

Changes to the Threshold Levels ( Medicare Levy Act 1986 )

The Medicare Levy Amendment Bill 1992 will amend the Medicare Levy Act 1986 to vary the taxable income levels below which persons are exempt from the levy as from 1 July 1992; the new levels compare with the old as follows:

Date of effect:

1 July 1992

Proposal announced:

1992-93 Budget.

Financial Impact:

The increase in the low income thresholds is estimated to cost nil in 1992-93, $12 million in 1993-94 and $6 million in 1994-95.