Changes To The Medicare Levy
The most significant change that will impact individual taxpayers is the increase in the Medicare levy from 2 percent to 2.5 percent from 1 July 2019. This is forecast to deliver $8.2 billion of additional revenue for the Government that will help fund the National Disability Insurance Scheme.
The across the board increase in the Medicare levy could be viewed as a way for the Government to replace the loss of revenue from the Temporary Budget Repair Levy that ceases on June 30, 2017. However, unlike the Budget Repair Levy that only impacted individuals with a taxable income over $180,000, the Medicare levy is not means tested, except against the low-income thresholds. With the removal of the Temporary Budget Repair Levy from July 1, 2017, the effective top marginal tax rate for individuals for the year ending June 30, 2018 will be 47% including the 2% Medicare Levy (down from 49% for the year ended June 30, 2017).
Low income earners will continue to receive relief from the Medicare Levy and the 2016/17 thresholds are as follows:
$21,655 (was $21,335)
$36,541 + $3,356 for each dependent child or student
Single Seniors & Pensioners
$34,244 (was $33,738)
Family Threshold - Seniors & Pensioners
$47,670 + $3,356 for each dependent child or student
Click HERE to download the full edition of The Business Accelerator Magazine for June 2017
Other Articles in This Edition:
Some of the Biggest Mistakes Small Businesses Make With Their Websites
Federal Budget – Economic Summary
Small Business - $20k Small Business Immediate Tax Deduction
Small Business - Company Tax Rates
Small Business - Extension of Taxable Payments Reporting to Courier and Cleaning Industries
Small Business - Access to CGT Concessions
Small Business - Looking to Employ Foreign Workers?
Individual Tax Rates
Restricting Residential Investment Property Deductions
Individuals - Higher Education Reform
Superannuation - Contributing Proceeds from Downsizing to Superannuation
Superannuation - First Home Super Saver Scheme
GST Changes - Purchasers to Pay GST on New Residential Premises
GST Changes - Digital Currency & Low-Value Imports
Tax Integrity Measures
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