House of Representatives

Second Reading Speech

Mr Bradbury (Assistant Treasurer and Minister Assisting for Deregulation)

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 will ensure that low-income individuals and families that are currently exempt from the Medicare levy and the Medicare levy surcharge will continue to be exempt when their incomes have risen in line with the consumer price index.

The bill also increases the Medicare levy low-income threshold for pensioners below age pension age. This will ensure that individuals in this cohort do not pay the Medicare levy when they do not have an income tax liability.

These increases will apply to the 2011-12 year.

Full details of the measures in this bill are contained in the explanatory memorandum.

Debate adjourned.