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.
From the 2003-04 income year, the Medicare levy low income threshold will increase to $15,529 for individuals (up from $15,062) and $26,205 for families (up from $25,417). The additional amount of threshold for each dependent child or student will also be increased to $2,406 (up from $2,334). The increase in thresholds takes into account movements in the CPI.
The Medicare levy low income threshold for pensioners below age pension age will also be increased. From 1 July 2003, the threshold will rise to $18,141 (up from ($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.