What is the proposed measure?
The Medicare levy will increase from 2% to 2.5%. Who will it affect? Individuals with taxable income that exceed the relevant threshold When will it apply? From 2019-20 Comment:
The Medicare levy will increase by 0.5% to ensure that the National Disability Insurance Scheme (NDIS) is fully funded.
Other tax rates that incorporate the top personal tax rate, such as the FBT rate, will also increase.
The increase in the Medicare levy will reduce the benefits that arose for some taxpayers with last year’s tax cuts for individuals with taxable incomes exceeding $80,000
What is the proposed measure? The Medicare Levy low-income thresholds will increase.
Who will it affect? Individuals taxpayers with taxable incomes at or below the new thresholds When will it apply? From 2018-19 Comment:
The increase in the low-income thresholds will provide some relief for lower income earners from the across-the-board 0.5% increase to the Medicare levy that will commence in 2019-20. Ideally, the Government will increase the thresholds in line with economic growth or wage growth so that affected taxpayers are not disadvantaged over the years.
The Higher Education Loan Program (HELP) debt repayment thresholds and rates will change.
Key changes are:
From 1 July 2019, the indexation of HELP repayment thresholds, currently linked to Average Weekly Earnings (AWE), will be changed to align to the Consumer Price Index (CPI). Who will it affect?
Individual taxpayers with a HELP debt.
When will it apply?
Comment:
This measure is part of the Government’s Higher Education Reform Package.
Overall, the proposal to reduce repayment thresholds by almost $14,000 will not be welcomed by current university students, high school students who aim to study at university, and former students who are still bearing a HELP debt.
The reduction of the minimum repayment rate from 4% to 1% will not offer sufficient relief from the change in thresholds.
The Government will reduce Family Tax Benefit (FTB) Part A supplement payments by $28 per fortnight for each child who does not meet the Government immunisation requirements.
The Government will also implement a consistent 30 cents in the dollar income test taper for FTB Part A families with a household income in excess of the Higher Income Free Area (currently $94,316). Who will it affect?
Families that receive the FTB Part A. When will it apply?
The FTB Part A supplement payment announcement is aimed at discouraging parents from not immunising their children.
The income test taper proposal ensures that higher income families are subject to the same income test taper rates.
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