Calls for Medicare levy exemption to be dropped
The Australian Council of Social Services (ACOSS) is calling on the Federal Government to abolish the Medicare levy exemption, in a move that would raise $4 billion a year.
The idea, spouted in a budget submission from the advocacy group, would see high-income earners slugged with an extra $900 charge a year. At present, only high-income earners without private health insurance are made to pay the levy.
ACOSS believes high income earners should be able to afford the levy, and as such should pay it, suggesting the removal of the exemption would be “highly progressive”.
The ACOSS budget submission reads: “Only families in the top 20 per cent of households earning over $180,000 would be affected, paying an extra 1.5 per cent of their income.
“Among single people without children, only those in the top three quintiles would be affected and the impact would rise with income. A single person earning $90,000 would pay $900 a year more, a single person earning $130,000 would pay $1,625 more and a single individual earning $280,000 would pay $4,200 more.”
ACOSS CEO Dr Cassandra Goldie believes extra funds generated by these measures should be directed towards the National Disability Insurance Scheme.
Dr Goldie told News.com.au, “We propose that the Levy be further strengthened to help pay for health, aged care and disability services, by removing the exemption for those holding private health insurance from the Medicare Levy surcharge. We estimate this would raise $4 billion.
“We can improve the effectiveness of health spending by dropping the Private Health Insurance Rebate and investing more in preventive health services instead of waiting until people need to use hospitals.”
What’s your take on this suggestion? Is it unfair to target high income earners, or would this be an easy quick fix that could generate real wins for the budget?
Let us know in the comments.
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