Andrew Murray (WA, Australian Democrats) Share this | Hansard source

The Tax Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Bill 2006 amends the Medicare Levy Act 1986 and the A new Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999. Section 7 of the Medicare Levy Act says no Medicare levy is payable where a taxpayer has a taxable income at or below the taxable threshold amount. The bill increases the low-income thresholds for individuals and families in line with the movements of CPI from $15,902 to $16,284 and increases the threshold under which the Medicare levy for pensioners below pension age is not payable. There is no medical care liability where such persons do not have an income tax liability.

Senator Stephens has covered the bill adequately. I indicate that the Democrats do support the bill, but I want to take the opportunity during the debate on the second reading of this bill to draw the attention of the chamber to a problem. I have known about this problem, but I was reminded of it by a summary in the Age on Saturday, 10 June 2006 entitled ‘The state of gay rights in Australia’. Under the heading ‘Medicare levy and safety nets’ it said:

The Medicare Levy surcharge affects same-sex couples differently due to the Medicare Levy Act’s definition of couples. This means that the surcharge is calculated at a higher rate for gay couples.

My party and many parliamentarians from all parties were very pleased to hear the Prime Minister the other week comment that he was not in favour of discrimination that acted to the detriment of Australians. He was specifically being asked about the situation for same-sex couples. I thought that this should be an occasion for the Senate to ask the government if they would advise the Senate of this particular issue.

I move the second reading amendment standing in my name on sheet 4963:

At the end of the motion, add:

        “but the Senate requests that the Government;

             (a)    report to the Senate not later than the first sitting day of 2007, on the costs and ramifications of adjusting the Medicare Levy surcharge to ensure that it affects or is calculated for same-sex couples on the same basis as mixed-sex couples; and

             (b)    provide a statement of the Government’s policy position in relation to that issue”.

It is a simple request. It requires a simple response. This would be the cost, and this is the government’s policy. As a courtesy and due to the fact that it is non-controversial legislation, I will take the votes on the voices.