The federal government will increase the Medicare levy by 0.5 percentage points to help fully fund the National Disability Insurance Scheme in a budget move welcomed by the not-for-profit sector.
Treasurer Scott Morrison told Parliament in his budget speech: “The funding gap is currently $55.7 billion over the next 10 years. We have previously sought to close this gap with budget savings that we have not been able to get through the Parliament. To ensure the NDIS is fully funded we will legislate to increase the Medicare levy by 0.5 percentage points in two years’ time, when the extra bills start coming in”.
Minister for Social Services, Christian Porter said the increase in the Medicare levy would apply from 1 July 2019 and would raise an extra $3.55 billion in revenue in its first year, rising to $4.25 billion in 2020-21.
To read the full Pro Bono article, click here.