Second Reading Speech
Dr Chalmers (Treasurer)I move:
That this bill be now read a second time.
Today I also introduce the Treasury Laws Amendment (Cost of Living - Medicare Levy) Bill 2024.
This is another way that the Albanese Labor government is providing more tax relief to Australians on modest incomes, to help with the costs of living.
It means more help for more people via the tax system, by adjusting the Medicare levy low-income thresholds.
It will ensure people on lower incomes continue to pay less or are exempt from the Medicare levy.
It means 1.2 million Australians get to keep a bit more of what they earn.
Most Australian residents pay the Medicare levy, charged at two per cent of their taxable income.
We are increasing the low-income thresholds by 7.1 per cent for singles, families, seniors and pensioners in line with average annual growth in the consumer price index.
This is not an automatic change; it's not indexation - it requires a government decision and this legislation.
The increases contained in this bill mean that those with a taxable income of up to $26,000 will not be liable for the Medicare levy - that's an increase of almost $2,000.
Seniors and pensioners will now be able to earn up to $41,089 before being liable for the Medicare levy.
Couples and families will now be able to earn up to $43,846.
Families who are eligible for the seniors and pensioners tax offset can now earn up to $57,198.
And the thresholds for couples and families increases by $4,027 for each dependent child or student.
These changes are about ensuring those on the lowest incomes, keep a bit more of their weekly pay packet - providing targeted relief to those that are doing it tough and helping to ease some of the pressures on Australian families, seniors and young people on modest incomes.
This bill adds to the cost-of-living relief we are already rolling out for those who need it most.
Our cost-of-living tax cuts for middle Australia that deliver a tax cut for every Australian taxpayer: the tens of billions of dollars in cost of living relief across childcare, energy bills and rents we are already rolling out, and the billions we have invested in strengthening Medicare.
We've tripled the bulk billing incentive, supporting 11.6 million Australians to access a GP with no out-of-pocket costs.
We've made medicines cheaper, saving Australians $250 million last year and with more savings to come this year.
And we're establishing Medicare Urgent Care Clinics across the country to ease the pressure on emergency departments when care is needed.
It is cost-of-living relief and health reform, hand in hand.
Our changes to the low-income threshold for the Medicare levy for 2023-24, as I said, will benefit more than a million Australians.
This is about doing what we responsibly can to help ease some of the pressure being felt by Australians right around the country - especially for those on lower incomes, younger people, seniors and women - and many of the Australians doing it toughest when it comes to managing cost-of-living pressures.
Across our tax changes, the tens of billions in targeted cost-of-living relief and now these changes to the Medicare levy - we are determined to make a positive difference in people's lives; to help where we can.
We are focused on getting the budget in better nick and inflation under control.
As well as, not instead of, supporting Australians through tough times.
Full details of the measures are contained in the explanatory memorandum.
Debate adjourned.