NO.035

The Government will increase the Medicare levy threshold to $20,000 for

senior Australians, including age and service (age) pensioners and to $15,970

for other pensioners entitled to the pensioner rebate.

This measure complements the increases in tax rebates, also announced in this

Budget, so as to ensure that single senior Australians with incomes up to

$20,000 are completely free from income tax and Medicare levy. (See Press

Release No. 37 Senior Australians: Increase in effective tax free threshold.)

The measure also ensures that pensioners not of age pension age and who are

entitled to the pensioner rebate can have income up to $15,970 without paying

income tax or Medicare levy. (See Press Release No. 36: Pensioners below

seniors age: Increase in effective tax free threshold.)

22 May 2001

CANBERRA