The Minister for Revenue and Assistant Treasurer, Peter Dutton, today introduced the Tax Laws Amendment (2007 Budget Measures) Bill 2007, which honours the Government’s 2007-08 Budget commitment to:
- increase the dependent spouse tax offset;
- increase the Medicare levy low-income thresholds in line with increases in the Consumer Price Index; and
- increase the Medicare levy low‑income threshold applicable to pensioners below age pension age so they do not have a
Medicare levy liability where they do not have an income tax liability.
This Bill will increase the dependent spouse tax offset from $1,655 to $2,100 with effect from 1 July 2007. This change will also allow the dependent spouse to earn more income before the offset is completely phased-out. The dependent spouse tax offset will be completely phased-out when the spouse has separate net income of $8,681 (up from $6,901 currently).
In addition, the Medicare levy low‑income threshold will increase to $16,740 for individuals and $28,247 for families. The additional amount of threshold for each dependent child or student will also be increased to $2,594. The Medicare levy low‑income threshold for pensioners below age pension age will be increased to $21,637. The increases for the Medicare levy low-income thresholds will apply from the 2006-07 income year.