Items still outstanding from last year’s Federal Budget – Medicare levy to increase from 2.0% to 2.5%

Per last year’s Federal Budget the Medicare levy is set to increase from 2.0% to 2.5% of taxable income from 1 July 2019!

The legislation bringing the new rate into effect is currently in the Senate, however Labor, the Greens and One Nation have opposed the bill in its current form.

Labor has suggested changing the Medicare Levy only for individuals earning above $87,000 per year.

Regardless, it is expected low income earners will continue to receive relief from the Medicare levy through the low income thresholds for singles, families, seniors and pensioners. The current exemptions from the Medicare levy will also remain in place.