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A Progressive Medicare Levy

July 02, 2017

A Progressive Medicare Levy – the Medicare top-up

David Richardson, The Australia Institute (June 2017). A new report models the impact of an increased Medicare Levy in comparison to a progressive Medicare Levy, more like income tax, on the spread of Australian income earners.

The Government proposes to increase the Medicare levy to 2.5 per cent of income from July 2019. That would mean a gradual switch in the tax mix from the progressive income tax to the Medicare levy; a ‘flat tax’ that raises the same proportion from higher and lower income earners.