The DisabilityCare Australia legislation that provides for a half a percentage point increase in the Medicare levy has passed the Parliament and become law.
The legislation will increase the Medicare levy from 1.5% to 2% of taxable income from 1 July 2014.
This will have a flow-on effect to other tax rates that implicitly incorporate the Medicare levy, such as FBT, the family trust distribution tax rate and the excess non-concessional contributions tax rate, all of which increase to 47% from 1 July 2014.
