From the 2011-12 income year, the Medicare levy low-income thresholds will be increased for singles to $19,404 (up from $18,839 for 2010-11) and to $32,743 for those who are members of a family (up from $31,789 for 2010-11).
The additional amount of threshold for each dependent child or student will also be increased to $3,007 (up from $2,919).
The Medicare levy low-income threshold for pensioners below Age Pension age will also be increased from 1 July 2011 to $30,451 (up from $30,439). This increase will ensure that pensioners below Age Pension age do not pay the Medicare levy while they do not have an income tax liability.
Date of effect: The measure will apply from 1 July 2011.
[Thomson Reuters comment: Note that, from 2012-13, the Medicare low income threshold for individuals has already been legislated to increase from $19,404 to $20,542 for singles, while the threshold for senior Australians has also been increased from $30,685 to $32,279 (or $46,000 for couples), as part of the Government’s carbon tax measures. The $32,743 threshold for families will apply to both the 2011-12 and 2012-13 income years. In addition, the Medicare levy income threshold for Senior Australians ($32,279 for 2012-13) will apply to all recipients of the new seniors and pensioners tax offset (SAPTO). That is, the threshold for SAPTO will also apply to former recipients of the pensioner tax offset who will be merged into the SAPTO from 1 July 2012.]
Source: Budget Paper No 2 [p 37]; Treasurer’s press release, 8 May 2012
[WTB 19, 8/5]