Federal MP Ed Husic has welcomed the Government’s commitment to building a better life for Australians with a significant and permanent disability in Chifley.
“So many people I talk to locally are hoping that we can make DisabilityCare a reality – to ease the burdens and anxieties they face on a day to day basis,” Mr Husic said.
“We know there are ways we can provide that care but we need to find ways to help fund it in the years ahead.
“For this reason, the Government will increase the Medicare Levy by half a percentage point from 1 July 2014. This will take the Medicare Levy from 1.5 per cent of taxable income to 2 per cent.
“For residents in Chifley who are earning around average wages of $70,000 a year, this will be a modest contribution of around 96 cents a day.
“Extending the Medicare Levy by less than $1 a day for most people is a small way that we can all provide a big hand to those who need support.
“Medicare was always there to provide a healthcare safety net for all Australians – now we’re stretching that net just a little bit further to provide support for the disabled and the people who help them.”
Low income earners will continue to receive relief from the Medicare Levy through the low income thresholds for singles, families, seniors and pensioners. The current exemptions from the Medicare levy will also remain in place, including for blind pensioners and sickness allowance recipients.
Even after this change, Australians will still benefit from the Government’s three rounds of tax cuts and the tripling of the tax free threshold. For example:
Someone earning $30,000 a year will pay an extra 41 cents a day in Medicare levy, but still be paying $903 less income tax per year than they were in 2007;
Someone earning $70,000 a year will pay an extra 96 cents a day in Medicare levy, but still be paying $953 less income tax per year than they were in 2007;
Someone earning $110,000 a year will pay an extra $1.51 a day in Medicare levy, but still be paying $1903 less income tax per year than they were in 2007.
The Federal Government has already reached agreement with New South Wales to deliver DisabilityCare in full by 2018.