Changes will be made to the Medicare Levy starting from July 1, 2019 when it will rise from the current 2% to 2.5%. The Medicare levy increase will raise an estimated $8.5 billion across the first three years from induction to ensure the National Disability Insurance Scheme is sufficiently funded.
However, there will be continued relief for low income earners. Increases to the low income threshold (where no levy is payable) are as follows, $21,655 for singles, $36,541 for families and $34,244 for seniors (effective from the 1st of July 2017). These changes are to adjust for increases in CPI.
Pro Tip:
Looking to reduce the impact of the Medicare levy increase? If you can bring forward income such as capital gains prior to July 1, 2019 or hold expenses till after July 1, 2019 you may be able to avoid the additional levy.
Author: Lachlan Hunn
Email: lachlan@faj.com.au
