Turnbull Government to Scrap $8 Billion Medicare Levy Increase

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Turnbull Government to Scrap $8 Billion Medicare Levy Increase

6 yrs ago

The Turnbull government will scrap its $8 billion increase in the Medicare levy, effectively preventing a future tax hike on voters and withdrawing one of the signature measures from its 2017 budget.

Warning "tax can go too far" Treasurer Scott Morrison will offer a preview of expected further income tax cuts on Thursday, and accuse Labor of "creating an unnecessary tax burden [that] squashes incentive and aspiration, and chokes demand."

He said tax receipts up until February were running $4.8 billion higher than he estimated in December through company profits and a jobs boom, meaning there was no longer a need for the extra 0.5 per cent levy on taxpayers to pay for the National Disability Insurance Scheme.

The proposed increase in the Medicare levy from 2 per cent to 2.5 per cent was projected to raise $8 billion in revenue over two years from its start in July 2019.

Mr Morrison said the withdrawal ensured "all Australians who pay the Medicare levy will now not have to pay more", less than a year after he said "we stand by this policy absolutely" and indicated he would take it to the next election.

What are your thoughts? Are you happy to have a responsible government which looks to minimise tax on working families? Do you think Labor and the Greens will oppose this measure in the Senate?

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24 comments

PlanB

6 yrs ago

Don't believe Scott Morison he will lie and cheat and say ANYTHING to get everyone on their side -- he is a heartless arrogant SOB and cares NOTHING about anyone but position and his beloved Hillsong church

Even Laurie Oakes thought much the same about him

https://thenewdaily.com.au/news/national/2015/09/20/15-things-didnt-know-scott-morrison/

Adrianus

6 yrs ago

I think the government would find it hard to sell tax cuts if they were to proceed with a medicare levy increase? I know they want to give workers tax cuts. Lets face it, the government doesnt need more revenue, it needs to better utilise the existing cash flow.

Puglet

6 yrs ago

I don’t require NDIS funding but was prepared to pay the increased levy if it means that the needs of people with disabilities are better met. I don’t believe for one minute that this government will fund the NDIS now or if they do they’ll keep cutting funds and services. People with disabilities and their carers usually live in very difficult circumstances. This is a rich country and we can afford to do much better.

Thank you Puglet. Having a seriously disabled grandson, and having lived with a disabled partner and child, I have first hand knowledge of the difficulties the disabled face. So few have real compassion for them, and certainly Scott Morrison couldn't care less!

Suze

6 yrs ago

We will have to grow more of these

Related image

Marian

6 yrs ago

Who everr the Australian Citizence have say the is not system & Governments who stop lie & bully tthe is not any democracy for the Citizence or civl rights the ignore all of as one day after any election is the same lie

Marian

6 yrs ago

The Governments never accept who the Citizen say the abuse all Rights Civil Tights bully & lie after any election & lie to the next

Eddy

6 yrs ago

To get back on track, the original funding for NDIS, as initiated by PM Gillard. was by increasing the Medicare levy from 1.5% to 2%, this new proposal was to increase it to 2.5%. If this increase was to provide adequate funding to look after disabled persons in our community I would have had no objection.

PlanB

6 yrs ago

I am sure that as many have said on this thread they would be quite prepared to put in a little extra for those that are doing it so darn tough -- just don't believe what Morrison says -- he is just trying to assure the next election

Suze

6 yrs ago

NDIS is ageist ...why do the Politicians do not sponsor it from their pensions.

Adrianus

6 yrs ago

The medicare Levy is not a hypothecated tax. The levy goes into general revenue along with other taxes collected. It is shown seperately merely to justify an additional tax within the progressive tax regime.

One of the main reasons for calling this tax a "medicare levy" is as you've outlined Eddy, people dont mind paying it. One may ask why isnt Tobacco and Alcohol tax included with the medicare levy and designated single purpose?

In 2013/14 the medicare levy at 1.5% raised just $10.3B and covered only 15% of the $71B cost of medicare. Thats a big slice of the $177B in taxes collected from workers.

If we were to fully fund Medicare the levy needs to be 10.4%.

In 2014/15 the 2% Medicare Levy raised $14.6B

We have 9 million income earners who are actually paying 10.4% medicare levy. Should we tell them the truth?

Adrianus

6 yrs ago

"NDIS is ageist ...why do the Politicians do not sponsor it from their pensions."

Good question.

Pushing the OAP qualifying age to 70 while their qualifying age for a parlaimentary gold plated pension is 55, is not showing leadership either.

Adrianus

6 yrs ago

The original medicare levy was set at 1% in 1984 by the Hawke Government.

It was raised again in 1986 to 1.25%.

Raised again by the Keating government to 1.4% in 1993.

Raised again to 1.5% in 1995.

In 1997 the Howard government introduced a 1% Medicare levy surcharge for higher income earners who didnt take out Private insurance. This has also been increased to 1.25% and 1.5% for very high income earners.

I think its time for some honesty.

Suze

6 yrs ago

Honesty would be nice :)

Adrianus

6 yrs ago

I agree Suze, the first politician who rises above politics and the pack like a pheonix will not go unnoticed, but that doesnt guarantee more votes unfortunately.

PlanB

6 yrs ago

Scott Morrison's BIL is disabled see here

http://www.dailymail.co.uk/news/article-4491768/Treasurer-s-disabled-brother-law-bursts-tears.html

Adrianus

6 yrs ago

Comon knowledge PlanB. As Morrison said in parlaiment recently he's not saying no to Gary (BIL) and the other 500,000 disabled in Australia.

Politics in bthis country is our biggest speed bump. I'm surprised Shorten and his gang are going soft and not having another medicare scare campaign? Or is that the job of the unions? Nobody is putting their name to the medicare scare TV ads.

Marian

6 yrs ago

The aall fascist copy system & Australian paranoia against presons whith Disability is Crime against International law & conventuin the Governments is lie against U.N. International law from 2007 the all federal system parliaments mdepartments Ministers is lie to the Australian Citizence from 20 years the is not Governments one persons who say any truth or act in any law abuse perons whith disability is crime against International law & is not diferent from Genocide

Suze

6 yrs ago

"The 2015 Survey of Disability, Ageing and Carers (SDAC) (ABS 4430.0 2015) by the Australian Bureau of Statistics ..... 4.3 million Australians are estimated to have disability or 18.3% of the population. Mar 27, 2018"

Looking at the above stats

There is no way 0.5 per cent levy on taxpayers is going to pay for the National Disability Insurance Scheme with 4.3 million people being disabled.

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Turnbull Government to Scrap $8 Billion Medicare Levy Increase

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