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ARTICLE · 14 MAY 2013

Proposed increase in Medicare Levy from 1 July 2014

The Federal Treasurer issued has a Press Release indicating that the Government proposes to increase the Medicare levy.

AustraliaGovernment, Public Sector

The Federal Treasurer issued a Press Release on 1 May 2013 indicating that the Government proposes to increase the Medicare levy by half a percentage point from 1 July 2014.

From 1 July 2014, the Medicare levy will rise from 1.5% to 2% of taxable income.

A table summarizing the annual impact is below:

Taxable Income Additional Medicare Levy Payable
$75 000 $375
$90 000 $450
$100 000 $500
$125 000 $625
$150 000 $750
$180 000 $900

DisabilityCare Australia Fund

The Government is proposing to establish a special DisabilityCare Australia Fund. It is intended that the Revenue from the additional levy will be paid into the fund, which will only be drawn down to meet expenditure directly related to DisabilityCare.

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