Tax boost announced for 1.2 million people
Low-income earners will receive a tax boost with the Medicare levy threshold set to rise.
The income threshold at which taxpayers will have to pay a two per cent Medicare levy will increase by 7.1 per cent, in line with inflation.
Currently single people who earn below $24,276 do not have to pay the levy. Under the changes, the two per cent levy only has to be paid by anyone earning over $26,000
The Medicare levy threshold for seniors and pensioners will increase to $41,089, up from the initial benchmark of $38,365.
For families, this threshold has increased to $43,486 up from the previous $40,939.
Treasurer Jim Chalmers said that the increase was part of the broader measures taken to relieve the increase in cost-of-living.
“This will ensure people on lower incomes continue to pay less or are exempt from the Medicare levy,” he said on Tuesday.
“It means 1.2 million Australians get to keep a bit more of what they earn.”
The boost in the Medicare levy threshold was announced alongside changes to income tax cuts, with those earning under $150,000 set to receive greater benefits.
“This is about doing what we responsibly can to ease some of the pressure being felt by Australians right around the country, but especially for people on lower incomes, young people, seniors and women,” Chalmers said.
This comes just days after Medicare celebrated it's 40th anniversary, with an exhibition launched at Parliament House.
Image: Getty