Josh Frydenberg (Kooyong, Liberal Party, Assistant Treasurer) Share this | Hansard source

I would like to thank those members who contributed to this debate. The Tax and Superannuation Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Bill 2015 amends the Medicare Levy Act 1986 to increase the Medicare levy low-income thresholds for singles, families, single seniors and pensioners in line with increases in the consumer price index.

For individual taxpayers, no Medicare levy will be payable for those with income under $20,896 in 2014-15. Single seniors and pensioners with no dependents who are eligible for the seniors and pensioners tax offset will not incur a Medicare levy liability if their income is less than $33,044 in 2014-15. Couples and families who are not eligible for the seniors and pensioners tax offset will not be liable to pay the Medicare levy for 2014-15 if their combined income is less than $35,261, plus $3,238 for each dependent child. The amendments to the Medicare levy low-income thresholds apply to the 2014-15 year of income and future income years.

Couples who are eligible for the seniors and pensioners tax offset do not incur a Medicare levy liability when their combined income is less than $46,000. The low-income threshold for seniors and pensioners in couples will not be increased at this time, as this threshold remains sufficient to ensure that senior and pensioner couples who do not otherwise pay tax will not be liable for the Medicare levy. Full details of the measures in this bill are contained in the explanatory memorandum. I commend this bill to the House.

Question agreed to.

Bill read a second time.

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