Announcement of an incease in the Medicare low income threshold

Are you a taxpayer on a low annual income?

Did you know that With the release of the 2009 Federal budget, the government has announced they will increase the Medicare levy low income thresholds from the 2008/09 income tax year?

The Medicare levy is a scheme designed to give Australian residents access to health care. To fund the scheme all Australian tax residents are required to pay a levy of 1.5% of taxable income. There are however, exemptions available to people earning under certain income thresholds. From the 2008/09 year, the Medicare levy low income thresholds will be increased to $17,794 for individuals and $30,025 for individuals in families. The additional amount of threshold for each dependent child or student will also increase to $2,757. Further, the government has announced they will increase the Medicare levy low income threshold for pensioners below Age Pension age to $25,299 from July 1, 2008.

For more information visit the Australian Taxation Office website at http://www.ato.gov.au .

Remember The changes to the low income threshold apply from the 2008/09 financial year.

By Sophia.