• Individuals

Personal income tax - Medicare levy low-income thresholds

The Government has announced the annual increase in the Medicare levy for low-income thresholds for singles, families, seniors, and pensioners.

The increases take account of movements in the Consumer Price Index (CPI) so that low-income taxpayers generally continue to be exempted from paying the Medicare levy.

The increases are outlined below.

Title Current New
Singles $21,335 $21,655
Family $36,001 plus $3,306 per dependent child or student $36,541 plus $3,356 per dependent child or student
Single – seniors and pensioners (eligible for SAPTO) $33,738 $34,244
Family – senior and pensioners $46,966 plus $33,06 per dependent child or student $47,670 plus $3,356 per dependent child or student

BDO Comment

The increase in the thresholds is not linked to the increased rate of Medicare Levy. Given that the increase in the levy is designed to be a new tax to fully fund the National Disability Insurance Scheme (NDIS), we would not expect any change to this position in future years.