Chris Bowen (Prospect, Australian Labor Party, Assistant Treasurer) Share this | Hansard source

in reply—I would like to thank all members who have contributed to this debate. The Tax Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Bill 2009 increases the Medicare levy low-income thresholds for individuals and families in line with increases in the consumer price index. The individual threshold amount is to be increased from $17,309 to $17,794. The family income threshold is to be increased from $29,207 to $30,025. The Medicare levy low-income threshold for pensioners below pension age is also increased to ensure that where these pensioners do not have a tax liability they do not have a Medicare levy liability. The low-income threshold and the Medicare levy surcharge provisions are similarly increased.

These changes ensure that low-income individuals and families will continue to be exempt from the Medicare levy or surcharge. The amendments to the Medicare levy low-income thresholds apply to the 2008-09 year of income and later years of income. Indexation of Medicare has enjoyed bipartisan support for a number of years, and I acknowledge the support of the opposition, as outlined by the member for Casey today. Full details of the measures in this bill are contained in the explanatory memorandum. I again thank those who have contributed and commend the bill to the House.

Question agreed to.

Bill read a second time.

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