Low-income earners will receive a tax boost with the Medicare levy threshold set to rise.
Laws introduced to federal parliament will see the income threshold at which taxpayers need to pay a two per cent Medicare levy increase by 7.1 per cent, in line with inflation.
Under the changes, the threshold will rise to $26,000, up from the previous benchmark of $24,276.
The threshold for seniors and pensioners has increased to $41,089, while families will be able to earn $43,846 before the levy kicks in.
Treasurer Jim Chalmers said the increase was part of broader cost of living relief measures.
“This will ensure people on lower incomes continue to pay less or are exempt from the Medicare levy,” he told parliament on Tuesday.
“It means 1.2 million Australians get to keep a bit more of what they earn.”
The boost in the Medicare levy threshold was announced alongside changes to income tax cuts, which will see those earning under $150,000 receive a greater benefit.
“This is about doing what we responsibly can to ease some of the pressure being felt by Australians right around the country, but especially for people on lower incomes, young people, seniors and women,” Dr Chalmers said.
An exhibition has been launched at Parliament House commemorating the 40th anniversary of Medicare.
Medicare was launched on February 1, 1984, by then-Labor prime minister Bob Hawke, almost a decade after the scheme was introduced in its first form as Medibank.
Prime Minister Anthony Albanese said Medicare was the foundation of Australia’s public health system.
“It is a testament to the good judgement of the Australian people who time and time again voted to protect Medicare and keep it strong,” he said.
“We need to celebrate the achievement of the creation and the maintenance of Medicare and we need to strengthen it.”
(Australian Associated Press)