Katy Gallagher (ACT, Australian Labor Party) Share this | Hansard source

I rise to speak on the Treasury Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Bill 2017. We support the indexation of the income thresholds below which Australians do not pay the Medicare levy or the Medicare levy surcharge. This bill will increase the Medicare levy low-income threshold for singles, families, seniors and pensioners in line with increases in the consumer price index. We will support the bill. However, we do want to note that this bill does not end the government's attack on Medicare. In this budget the government has continued its Medicare freeze for another three years, despite many Australians being concerned about the impact on bulk-billing rates and paying more to see the doctor. Since the government imposed the freeze in the 2014 midyear economic forecast, out-of-pocket costs are now at an all-time high. Non-referred GP attendances are now $37, up $7. Specialist attendants are now $82, up $14 in just three months. We know that 600,000 Australians delay seeing a specialist because of the cost. The government needs to alleviate the pressure that these Australians face when having to decide whether they pay a bill or visit the doctor.

We were told in the delivery of the 2017 budget that Australians would be given a choice, but this does not feel like a choice.

In this budget, the government also announced its intention to increase the Medicare levy; however, Labor does not think it is fair to increase taxes on lower-income earners while also allowing those who earn more than $180,000 per year to pay less tax next year than they did this year. Labor has said it will support the government's 0.5 per cent increase in the Medicare levy, but only for Australians in the top two brackets.

Under Labor's plan, 80 per cent of Australians and 10 million working Australians would be protected from a tax increase. We want those who are financially stretched because they are supporting their families, have lost their jobs or are unable to work to be taxed fairly. Labor supports the indexation of the income thresholds for the Medicare levy and the Medicare levy surcharge, and that is why we will support the bill this afternoon.