House of Representatives

Explanatory Memorandum

(Circulated by authority of the Treasurer, the Hon Scott Morrison MP)

Chapter 2 Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Medicare levy and Medicare levy surcharge low-income thresholds

2.1 This Bill is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview

2.2 The Bill amends the Medicare Levy Act 1986 and the A New Tax System (Medicare Levy Surcharge - Fringe Benefits) Act 1999 to:

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increase the Medicare levy low-income thresholds for individuals and families (along with the dependent child/student component of the family threshold) in line with movements in the consumer price index (CPI);

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increase the Medicare levy low-income threshold for individual taxpayers and families eligible for the seniors and pensioners tax offset, in line with movements in the CPI; and

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increase the Medicare levy surcharge low-income threshold in line with movements in the CPI.

2.3 This will ensure that low-income individuals, families, seniors and pensioners who were exempt from the Medicare levy in the 2014-15 income year will continue to be exempt in the 2015-16 income year if their income has increased in line with, or less than, the CPI.

Human rights implications

2.4 This Bill does not engage any of the applicable rights or freedoms.

Conclusion

2.5 This Bill is compatible with human rights as it does not raise any human rights issues.