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Budget 2007: Increase in the Medicare levy low-income thresholds.



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NO.047

INCREASE IN THE MEDICARE LEVY LOW-INCOME THRESHOLDS

To ensure that low-income families and individuals are exempt from paying the Medicare levy, the Government will increase the Medicare levy low-income thresholds for individuals and families and the threshold for pensioners below age pension age.

From 1 July 2006, the Medicare levy low-income threshold will increase to $16,740 (from $16,284) for individuals and $28,247 (from $27,478) for families. The additional amount of threshold for each dependent child or student will increase to

$2,594 (from $2,523). The increase in thresholds takes into account movements in the Consumer Price Index.

The Medicare levy low-income threshold for pensioners below age pension age will also be increased. From 1 July 2006, the threshold will rise to $21,637 (from $19,583). This will ensure that pensioners below age pension age do not pay the Medicare levy while they do not have an income tax liability.

CANBERRA

8 May 2007

Media Contact: Brad Emery (02) 6277 7360 - 0414 225 638