Bills introduced
The Medicare Levy Amendment (DisabilityCare Australia) Bill 2013 and the DisabilityCare Australia Fund Bill 2013 (along with a package of 10 other Bills) were introduced into the House of Reps on Wed 15.5.2013 [the morning after the Federal Budget].
On 1 May 2013, the Government announced that it would increase the Medicare levy by half a percentage point from 1 July 2014 and that the revenue from this increase would be directed to a new fund, the DisabilityCare Australia Fund. From 1 July 2014, the Medicare levy will increase from 1.5% to 2% of taxable income. A number of other tax rates that are linked to the Medicare levy will also increase.
Low income earners will continue to receive relief from the Medicare levy through the low income thresholds for singles, families, seniors and pensioners. The current exemptions from the Medicare levy will also remain in place, including for blind pensioners and sickness allowance recipients.
All revenue raised from increasing the Medicare levy will be paid into the DisabilityCare Australia Fund and will only be drawn down to make reimbursements to the Commonwealth and States and Territories for expenditure directly related to DisabilityCare Australia. The DisabilityCare Australia Fund will be managed by the Future Fund Board of Guardians.
[LTN 92, 15/5/13]
Medicare levy increase Bills pass all stages and await Assent
The package of 11 Bills to increase the Medicare levy to 2% from 1 July 2014 to help fund DisabilityCare Australia (the national disability insurance scheme) have now passed all stages without amendment and effectively await Royal Assent, after having been passed by the Senate on Thur 16.5.2013.
[LTN 93, 16/5/13]
Bills received Royal Assent – See Act Nos.
The Bills to implement the increase in the Medicare levy from 1.5% to 2% of taxable income from 1 July 2014 to help fund the NDIS received Royal Assent on 28 May 2013 (they had passed all stages without amendment). The Bills are:
- Medicare Levy Amendment (DisabilityCare Australia) Bill 2013 – – Act No 43 of 2013. The Bill amends the Medicare Levy Act 1986 to increase the Medicare levy rate from 1.5% to 2% of taxable income for the 2014-15 income year and later income years.
Increasing the Medicare levy also required a number of consequential amendments to other tax rates that are linked to the top marginal rate and the Medicare levy. This includes changes to FBT, excess contributions tax, and the tax withheld on bank accounts when the account holder has not provided their TFN.
- Fringe Benefits Tax Amendment (DisabilityCare Australia) Bill 2013 – Act No 39 of 2013.
- Income Tax Rates Amendment (DisabilityCare Australia) Bill 2013 – Act No 41 of 2013.
- Superannuation (Excess Concessional Contributions Tax) Amendment (DisabilityCare Australia) Bill 2013 – Act No 47 of 2013.
- Superannuation (Excess Non-concessional Contributions Tax) Amendment (DisabilityCare Australia) Bill 2013 – Act No 46 of 2013.
- Superannuation (Excess Untaxed Roll-over Amounts Tax) Amendment (DisabilityCare Australia) Bill 2013 – Act No 45 of 2013.
- Income Tax (TFN Withholding Tax (ESS)) Amendment (DisabilityCare Australia) Bill 2013 – Act No 42 of 2013.
- Income Tax (First Home Saver Accounts Misuse Tax) Amendment (DisabilityCare Australia) Bill 2013 – Act No 40 of 2013.
- Family Trust Distribution Tax (Primary Liability) Amendment (DisabilityCare Australia) Bill 2013 – Act No 38 of 2013.
- Taxation (Trustee Beneficiary Non-disclosure Tax) (No 1) Amendment (DisabilityCare Australia) Bill 2013 – Act No 48 of 2013.
- Taxation (Trustee Beneficiary Non-disclosure Tax) (No 2) Amendment (DisabilityCare Australia) Bill 2013 – Act No 49 of 2013.
- DisabilityCare Australia Fund Bill 2013 – Act No 37 of 2013. This establishes the DisabilityCare Australia Fund, which consists of: the DisabilityCare Australia Fund Special Account, and the investments of the DisabilityCare Australia Fund.
- National Disability Insurance Scheme Legislation Amendment Bill 2013 – Act No 44 of 2013. This makes minor amendments to the National Disability Insurance Scheme Act 2013 to clarify the policy intention in relevant provisions, and to address minor anomalies and technical errors.
[LTN 102, 29/5/13]