Aussie Families To Save $600 In Medicare Levy Backflip
The average Aussie family is set to save around $600 a year thanks to the monumental backflip on plans to significantly increase the Medicare levy.
The Turnbull government are set to announce today that they will scrap the proposed $8 billion increase to the Medicare levy that was originally intended to help fund disability insurance.
Government sources confirmed with various media outlets last night that Treasurer Scott Morrison would make the announcement on Thursday, as they have managed to find money to cover the National Disability Insurance Scheme without the levy.
It’s believed that an extra $4.8 billion in additional tax revenue that was not forecast in the mid-year budget last year will cover the costs.
“We are now in a position to give our guarantee to Australians living with a disability and their families and carers that all planned expenditure on the NDIS will be able to be met in this yea’s budget and beyond without any longer having to increase the Medicare levy,” Mr Morrison will allegedly say today.
“The reason we proposed to increase the Medicare Levy was only to fully fund the gap left behind by Labor on the NDIS. We no longer believe we need to do this.”
However, government sources have told the Australian Financial Review that the real reason for this backflip is that the plan would never have passed through the Senate and would’ve instead damaged their credibility with ratings agencies after remaining on the budget books.
Labor consistently opposed the 0.5 per cent increase to the Medicare Levy during the 2017 budget and instead they suggested that taxpayers in the top two income brackets should be the only people to see the increase.
“We don’t support millionaires playing less and 10 million people paying more,” said opposition leader Bill Shorten last year.
Today’s announcement is said to be just one of many measures in this years budget, due on May 8, that will return money to voters and if the budget. An election may be called as early as August if this budget is well received by the public.