In order to ensure that low income families and individuals are exempt from paying the Medicare levy, the Australian Government will increase the Medicare levy low-income thresholds and the Medicare levy threshold for pensioners of less than age pension age, the Minister for Revenue and Assistant Treasurer, Mal Brough, announced today.
From the 2004-05 income year, the Medicare levy low income threshold will increase to $15,902 for individuals and $26,834 for families. The additional amount of threshold for each dependant child or student will also be increased to $2,464. The increase in thresholds takes into account movements in the consumer price index.
The Medicare levy threshold for pensioners below age pension age will also be increased. From 1 July 2004, the threshold will rise to $19,252. This will ensure that pensioners below age pension age do not pay the Medicare levy while they do not have an income tax liability.