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Medicare levy hike to help fund the NDIS will cost taxpayers $1 a day: PM


Medicare levy hike to help fund the NDIS will cost taxpayers $1 a day: PM

JULIA Gillard will go to the next election promising a 0.5 per cent income tax hike to help fund her national disability insurance scheme.


The Prime Minister said her plan to lift the Medicare levy from 1.5 to 2 per cent would cost average Australians $1 more a day from July 1, 2014.


The estimated $3.2 billion raised from the new levy would be placed into a special account that would be used only to fund the NDIS.


A quarter of the money will go to the states to assist with NDIS pilot schemes.


Ms Gillard said further budget savings would be needed in the future to meet the full cost of the scheme, budgeted at $8 billion a year when fully operational.


Labor had previously rejected a levy to fund the NDIS, which the Productivity Commission said should be a last resort.


But Ms Gillard said today: "I have thought about this deeply and I have changed my mind."


She said the government would not attempt to legislate the levy hike before the September election, ensuring the money will be available in the budget while putting off a parliamentary vote on the issue.


Ms Gillard said Labor wasn't afraid to make the case for the tax hike during the election campaign.


"It's the right decision for our nation's future and that's why we stand here announcing it today, so people can judge it and weigh it," she said.


"We are prepared to fight for this, for the principle that we all put in, and we all share a risk that every Australian faces."

References and further information

The original article was produced by The Australian website.

To view the rest of this article, visit The Australian website.


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