The Federal Government has confirmed it will raise the low-income thresholds for the Medicare Levy and Medicare Levy Surcharge as part of the 2012-13 Budget.

 

The increase in the threshold will be backdated to take effect from 1 July, 2011 and will see the low-income threshold increase to $19,404 for singles. Up from $18,839, and to $32,743 for couples, up from $31,789.

 

For families, the additional amount of threshold for each dependent child or student will also be increased to $3,007 (up from $2,919).

 

The increased threshold for families applies for the 2011‑12 income year and future income years while the increased threshold for singles applies only in the 2011‑12 income year, as this threshold will rise to $20,542 in 2012‑13 as part of the Clean Energy Future Plan household assistance package.

 

The Medicare Levy low-income threshold for pensioners below Age Pension age will also be increased. For the 2011-12 financial year, the threshold will rise to $30,451 (up from $30,439).