Medicare levy cuts

TAXPAYERS will save an extra $400 a year with the Government scrapping its controversial plan to hike the Medicare levy as part of next month’s Budget.

The policy reversal will effectively boost middle-income tax cuts already promised by the Turnbull Government, as they will no longer be giving with one hand and taking with another.

Treasurer Scott Morrison will today use a pre-Budget speech to reveal a boost to Government’s coffers has made the Medicare levy hike unnecessary.

In last year’s budget Mr Morrison revealed the Government would increase the Medicare levy from July 2019 by 0.5 per cent to 2.5 per cent, raising $8.2 billion over four years to pay for the National Disability Insurance Scheme.

But rising revenue from resources and windfalls from an improving economy will allow the government to cover the NDIS without asking taxpayers to pay more.