From 1 July 2014, the Medicare levy will increase from 1.5% to 2% of taxable income for the 2014-2015 income year and later years. The money raised from the increase will be placed into a National Disability Insurance Scheme fund (Disability Care Australia).
This increase will also mean consequential changes for legislation that reference the Medicare levy rate. You may be affected if you are:
INDIVIDUAL INCOME THRESHOLDS
If your taxable income is equal to or less than your lower threshold amount, you do not have to pay the Medicare levy. If you’re taxable income is greater than your lower threshold and less than or equal to your upper threshold amounts, you pay only part of the Medicare levy:
WHAT IS DISABILITY CARE?
From 1 July 2019, the scheme will support more than 400,000 Australians with a disability, their families and carers. It will help pay for carers, to give parents of children with a disability a break. It will help pay for new wheelchairs tailored to individual needs. It will fund home modifications to help people with a disability move around easier. It will fund early intervention services children, like physiotherapy and speech pathology. The increase to the Medicare levy equates to an extra dollar a day for an average income earner. The change would collect $20 billion in its first five years.