The Government late on Mon 13.5.2013, released draft legislation proposing to implement the Government’s announcement to increase the Medicare levy from 1.5% to 2% of taxable income from 1 July 2014. The draft legislation will also establish the DisabilityCare Australia Fund. The Government said the draft legislation has been released so that it can be considered by Members and Senators ahead of its introduction, which was expected to be on Wed 15.5.2013.

The draft legislation also contained a number of minor consequential bills to amend tax laws flowing from the increase in the Medicare levy, including FBT and excess contributions tax, which the Government said will maintain the integrity of the tax system.

Source: Treasurer, Minister for Families, and Minister for Disability Reform’s joint media release, 13 May 2013

[LTN 90, 14/5/13]