NO. 56

EMBARGO Budget. Not for release before 7.30 pm AEST, 13 May 1997.

MEDICARE LEVY LOW INCOME THRESHOLDS 1997-98

Financial Implications ($m)

Explanation

When the Medicare levy was introduced in 1984, an exemption was provided for low income individuals and families who were eligible for free medical treatment prior to Medicare. The exemption for a single person has a lower income threshold than the exemption for a couple or a single parent. For couples and single parents, the thresholds increase by a set amount per child.

Consistent with the original objective, the Medicare levy low income thresholds for 1997­98 will be increased to $13,389 for individuals and $22,594 for couples and sole parents. The additional threshold for each dependent child is $2,100.

The increases in the individual, couple, and sole parent thresholds are in line with movements in the consumer price index.

The above material is a full extract of the description of the measure as contained in Budget Paper No 2: Budget Measures 1997-98. This paper explains all outlays and revenue measures, and is available from the Treasury Internet site at Budget Paper 2.