NO.043

INCREASE IN MEDICARE LEVY THRESHOLDS

In order to ensure that low income families and individuals are exempt from paying the Medicare levy, the Government will increase the Medicare levy low income thresholds and the Medicare levy threshold for pensioners of less than age pension age.

From the 2002-03 income year, the Medicare levy low income threshold will increase to $15,062 for individuals and $25,417 for families. The additional amount of threshold for each dependent child or student will also be increased to $2,334. The increase in thresholds takes into account movements in the CPI.

The Medicare levy threshold for pensioners below age pension age will also be increased. From 1 July 2002, the threshold will rise to $17,164. This will ensure that pensioners below age pension age do not pay the Medicare levy while they do not have an income tax liability.

Contact: David Alexander

Office of the Treasurer

(02) 6277 7340