Second Reading Speech
Mr SLIPPER (Parliamentary Secretary to the Minister for Finance and Administration)I move:
That this bill be now read a second time.
This 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, married couples and sole parents in line with movements in the consumer price index. The individual low income threshold for Medicare levy surcharge purposes is similarly increased. This means that more people will be exempt from the levy and surcharge.
The bill also increases the Medicare levy low income threshold for pensioners below the age pension age to ensure that where those pensioners do not have a tax liability they will also not have a Medicare levy liability.
There are also minor technical amendments to the Medicare Levy Act 1986 and the Income Tax Assessment Act 1936 relating to the Medicare levy.
The increases in the Medicare levy low income thresholds will apply to the 2001-02 year of income and later years of income. The technical amendment to the Medicare Levy Act 1986 will apply to the 2000-01 year of income and later years of income. The technical amendment to the Income Tax Assessment Act 1936 will apply to the 1997-98 year of income and later years of income.
Full details of the measures in this bill are contained in the explanatory memorandum.
I commend the bill to the House and present the explanatory memorandum.
Debate (on motion by Mr Swan) adjourned.