M5
Moderator
THE average working family would be forced to pay another $2000 a year in tax under a proposal being considered by state and federal governments to fix their spending blowouts by raising the Medicare Levy.
Exclusive modelling commissioned by The Daily Telegraph has revealed the proposal from the Labor states, which will again be considered at the next COAG meeting later this year, would raise almost $14 billion in annual revenue.
However, as an alternative to raising or broadening the GST, the higher Medicare levy plan would deliver a direct hit to the average family household of between $2000 and $4000 a year.
The federal government has so far refused to rule out the higher tax plan proposed by the Queensland and Victorian Labor governments at last month’s COAG meeting as the best option to fix its and the states’ budget problems. The federal Labor opposition has also refused to rule it out.
The National Centre for Social and Economic Modelling was commissioned to cost the proposal and model the impact of a 4 per cent Medicare Levy on the family budget.
While lower income earners would pay as little as $20 a year extra under a doubling of the Medicare levy, the average working age household would be forced to pay an extra $1923 a year.
Those on higher salaries, and those paying private health insurance, would be slugged more than $4000 more a year.
Based on the 2015-2016 federal budget parameters, it would raise $13.8 billion in extra revenue for the federal government.
This is less than half of the estimated $35 billion expected to be raised by lifting the GST to 15 per cent — as proposed by the NSW government.
The NATSEM modelling revealed those on lower incomes levels up to $50,000 a year regarded as working households — a couple with two children — would pay $20 a year extra. Those regarded as middle income families — between $70,000 and $95,000 would be slugged an extra $1223 a year on average.
And those in the higher income brackets for a couple with children on salaries above $132,000 would pay on a sliding scale up to $4278 a year for the top levels. This equated to the average household paying $1936 per year more in tax.
Bron: The Daily Telegraph. Article
Exclusive modelling commissioned by The Daily Telegraph has revealed the proposal from the Labor states, which will again be considered at the next COAG meeting later this year, would raise almost $14 billion in annual revenue.
However, as an alternative to raising or broadening the GST, the higher Medicare levy plan would deliver a direct hit to the average family household of between $2000 and $4000 a year.
The federal government has so far refused to rule out the higher tax plan proposed by the Queensland and Victorian Labor governments at last month’s COAG meeting as the best option to fix its and the states’ budget problems. The federal Labor opposition has also refused to rule it out.
The National Centre for Social and Economic Modelling was commissioned to cost the proposal and model the impact of a 4 per cent Medicare Levy on the family budget.
While lower income earners would pay as little as $20 a year extra under a doubling of the Medicare levy, the average working age household would be forced to pay an extra $1923 a year.
Those on higher salaries, and those paying private health insurance, would be slugged more than $4000 more a year.
Based on the 2015-2016 federal budget parameters, it would raise $13.8 billion in extra revenue for the federal government.
This is less than half of the estimated $35 billion expected to be raised by lifting the GST to 15 per cent — as proposed by the NSW government.
The NATSEM modelling revealed those on lower incomes levels up to $50,000 a year regarded as working households — a couple with two children — would pay $20 a year extra. Those regarded as middle income families — between $70,000 and $95,000 would be slugged an extra $1223 a year on average.
And those in the higher income brackets for a couple with children on salaries above $132,000 would pay on a sliding scale up to $4278 a year for the top levels. This equated to the average household paying $1936 per year more in tax.
Bron: The Daily Telegraph. Article