Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)General outline and financial impact
Medicare levy and Medicare levy surcharge low income thresholds
This bill amends:
- •
- the
Medicare Levy Act 1986
to:
- -
- increase the Medicare levy low income thresholds for individuals and families. The dependent child/student component of the family threshold will also be increased. The increases are in line with movements in the consumer price index (CPI); and
- -
- increase the Medicare levy low income threshold for pensioners below age pension age so that they do not have a Medicare levy liability where they do not have an income tax liability;
- •
- the
A New Tax System (Medicare Levy Surcharge-Fringe Benefits) Act 1999
to:
- -
- increase the Medicare levy surcharge low income threshold in line with movements in the CPI.
Date of effect: The increased Medicare levy and Medicare levy surcharge low income thresholds apply from the 2003-2004 year of income and later years of income.
Proposal announced: This measure was announced in the 2004-2005 Budget. It was also announced in the Minister for Revenue and Assistant Treasurer's Press Release No. C033/04 of 11 May 2004.
Financial impact: This measure has a cost to revenue of $41 million in 2004-2005 and $21 million each year in the period from 2005-2006 to 2007-2008.
Compliance cost impact: Compliance costs will be negligible.
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
