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$8 BILLION Medicare levy hike dumped saving taxpayers $375

  • Australian taxpayers will be spared a future tax hike as Medicare levy scrapped
  • The increase was aimed at covering the costs of National Disability Insurance 
  • Treasurer Scott Morrison will reveal tax receipts showing increase is not needed
  • Labor had opposed the tax hike saying it was unfair to low-income earners 

Australian taxpayers will be spared a future tax hike as the Turnbull government scraps an $8 billion increase to the Medicare levy.

The increase, a signature measure of the 2017 federal budget, was aimed at covering the costs of the National Disability Insurance Scheme.

But Treasurer Scott Morrison is set to release better-than-expected tax receipts to show the extra 0.5 per cent hike is no longer needed.

Treasurer Scott Morrison is set to release better-than-expected tax receipts to show the extra 0.5 per cent hike is no longer needed

The levy would’ve cost the average wage-earner $375 per year. 

‘All planned expenditure on the NDIS will be able to be met in this year’s budget and beyond without any longer having to increase the Medicare levy,’ he will tell business economists on Thursday.

Mr Morrison will say tax receipts up until February were running $4.8 billion higher than estimated in December, thanks to company profits, a temporary commodities boost and a jobs boom.

The treasurer will again accuse Labor of leaving a $57 billion shortfall in NDIS funding when it left office.

‘The reason we proposed to increase the Medicare levy was only to fully fund the gap left behind by Labor on the NDIS,’ he will say.

‘We no longer believe we need to do this.’

Opposition Leader Bill Shorten said the plan was unfair to people on lower incomes

Opposition Leader Bill Shorten said the plan was unfair to people on lower incomes

Negotiations over the government’s bill have stalled in the Senate.

Labor had proposed to restrict the 0.5 per cent Medicare levy increase to those earning more than $87,000.

Opposition Leader Bill Shorten said the plan was unfair to people on lower incomes.

‘There’s nothing fair about making middle-class and working-class Australians pay more, while millionaires and multinationals pay less,’ Mr Shorten said.

He also compared the proposed increased levy to tax cuts given to businesses.

Australian taxpayers will be spared a future tax hike as the Turnbull government scraps an $8 billion increase to the Medicare levy

Australian taxpayers will be spared a future tax hike as the Turnbull government scraps an $8 billion increase to the Medicare levy

 

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Read more at DailyMail.co.uk


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