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 on Tuesday: “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.
“I also announce a commitment of $80 million for Australians with a mental illness such as severe depression, eating disorders, schizophrenia and post-natal depression resulting in a psychosocial disability, including those who had been at risk of losing their services during the transition to the NDIS.”
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.
Source: Pro Bono Australia