Medicare Relief For 1 Million
The Age
Saturday May 10, 2008
MORE than 1 million people without private health insurance will be up to $1000 a year better off under a budget decision to double the income threshold at which the Medicare surcharge kicks in.
And families without private cover will avoid paying the 1% Medicare Levy Surcharge where combined income is less than $150,000 - up from $100,000 - a saving of up to $1500. The changes, which begin from July 1, will be outlined in Treasurer Wayne Swan's budget next week. Although uninsured young adults will gain most from the policy, it is likely to also encourage under-30s who are insured to drop their cover until age-based health insurance penalties come into effect when they turn 31. It is the first time the threshold for the Medicare surcharge, which was introduced in 1997, has been lifted. The overhaul of the surcharge, which raises the threshold for singles from $50,000 to $100,000, will form part of the Government's efforts to help low and middle-income families, who will also benefit from planned income tax cuts. Tuesday's budget is expected to reduce or end welfare benefits paid to the well-off. Prime Minister Kevin Rudd said yesterday that it defied his imagination why the soon-to-become $5000 baby bonus should be paid to millionaires. Mr Swan said the budget would begin a reform agenda stretching well into the next decade.
© 2008 The Age