House of Representatives

Second Reading Speech

Mr Shorten (Assistant Treasurer and Minister for Financial Services and Superannuation)

I move:

That this bill be now read a second time.

This bill increases the Medicare levy and Medicare levy surcharge low-income thresholds for individuals and families in line with increases in the Consumer Price Index. These changes, which historically have received bipartisan support, will ensure that low-income individuals and families will continue to be exempt from the Medicare levy and/or the Medicare levy surcharge.

This bill also increases the Medicare levy low-income threshold for pensioners below Age Pension age to ensure that these pensioners also do not pay the Medicare levy when they do not have an income tax liability.

These amendments will apply to the 2010-11 year of income and later income years. Full details of this bill are contained in the explanatory memorandum.

I commend this bill to the House.

Debate adjourned.