Taxation Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Act 2002

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Legislation au C2004A00973 In force Act

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Taxation Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Act 2002

Act No. 39 of 2002 as amended

This compilation was prepared on 3 September 2010
taking into account amendments up to Act No. 75 of 2010

The text of any of those amendments not in force
on that date is appended in the Notes section

The operation of amendments that have been incorporated may be
affected by application provisions that are set out in the Notes section

Prepared by the Office of Legislative Drafting and Publishing,
Attorney‑General’s Department, Canberra

 

 

Contents

1 Short title [see Note 1]

2 Commencement [see Note 1]

3 Schedule(s)

Schedule 1—Increases in thresholds

A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999

Medicare Levy Act 1986

Schedule 2—Other amendments

Income Tax Assessment Act 1936

Medicare Levy Act 1986

Notes

 

An Act to amend the law relating to taxation, and for related purposes

1  Short title [see Note 1]

  This Act may be cited as the Taxation Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Act 2002.

2  Commencement [see Note 1]

  This Act commences on the day on which it receives the Royal Assent.

3  Schedule(s)

  Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Increases in thresholds

 

A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999

1  Paragraph 15(1)(c)

Omit “$13,807”, substitute “$14,539”.

2  Paragraph 16(2)(c)

Omit “$13,807”, substitute “$14,539”.

Medicare Levy Act 1986

3  Subsection 3(1) (paragraph (b) of the definition of phase‑in limit)

Omit “$17,264”, substitute “$17,913”.

4  Subsection 3(1) (paragraph (c) of the definition of phase‑in limit)

Omit “$14,926”, substitute “$15,717”.

5  Subsection 3(1) (paragraph (b) of the definition of threshold amount)

Omit “$15,970”, substitute “$16,570”.

6  Subsection 3(1) (paragraph (c) of the definition of threshold amount)

Omit “$13,807”, substitute “$14,539”.

7  Subsection 8(5) (definition of family income threshold)

Omit “$23,299”, substitute “$24,534”.

8  Subsection 8(5) (definition of family income threshold)

Omit “$2,140”, substitute “$2,253”.

9  Subsection 8(6)

Omit “$23,299”, substitute “$24,534”.

10  Subsection 8(7)

Omit “$23,299”, substitute “$24,534”.

11  Paragraph 8D(3)(c)

Omit “$13,807”, substitute “$14,539”.

12  Subparagraph 8D(4)(a)(ii)

Omit “$13,807”, substitute “$14,539”.

13  Paragraph 8G(2)(c)

Omit “$13,807”, substitute “$14,539”.

14  Subparagraph 8G(3)(a)(ii)

Omit “$13,807”, substitute “$14,539”.

15  Application of amendments

The amendments made by this Schedule apply to assessments for the 2001‑2002 year of income and later years of income.


Schedule 2—Other amendments

 

Income Tax Assessment Act 1936

1  Paragraph 251U(1)(cb)

Omit “subsection 43(1) of”, substitute “Method statement 2 in subpoint SCH6‑A1(3), or Method statement 4 in subpoint SCH6‑A1(5), in Schedule 6 to”.

2  Subparagraph 251U(1)(cc)(ii)

Omit all the words after “worked out under”, substitute “Method statement 6 in subpoint SCH6‑A1(7) in Schedule 6 to the Veterans’ Entitlements Act 1986;”.

3  Application of amendments

The amendments made by items 1 and 2 apply to assessments for the 1997‑98 year of income and later years of income.

Medicare Levy Act 1986

4  Paragraph 8(1)(b)

Repeal the paragraph, substitute:

 (b) is entitled to a rebate under section 159J of the Assessment Act in respect of a person included in class 2 of the table in subsection 159J(2) of that Act, or would be so entitled apart from subsection 159J(1AA) of that Act; or

5  Paragraph 8(1)(d)

Repeal the paragraph, substitute:

 (d) is entitled to a rebate under section 159L of that Act, or would be so entitled apart from subsection 159L(3A) of that Act;

6  Paragraph 8(2)(b)

Repeal the paragraph, substitute:

 (b) is entitled to a rebate under section 159J of the Assessment Act in respect of a person included in class 2 of the table in subsection 159J(2) of that Act, or would be so entitled apart from subsection 159J(1AA) of that Act; or

7  Paragraph 8(2)(d)

Repeal the paragraph, substitute:

 (d) is entitled to a rebate under section 159L of that Act, or would be so entitled apart from subsection 159L(3A) of that Act;

8  Application of amendments

The amendments made by items 4 to 7 apply to assessments for the 2000‑01 year of income and later years of income.

Notes to the Taxation Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Act 2002

Note 1

The Taxation Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Act 2002 as shown in this compilation comprises Act No. 39, 2002 amended as indicated in the Tables below.

Table of Acts

Act

Number
and year

Date
of Assent

Date of commencement

Application, saving or transitional provisions

Taxation Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Act 2002

39, 2002

26 June 2002

26 June 2002

 

Tax Laws Amendment (2010 Measures No. 2) Act 2010

75, 2010

28 June 2010

Schedule 6 (item 102): 29 June 2010

—

Table of Amendments

ad. = added or inserted      am. = amended      rep. = repealed      rs. = repealed and substituted

Provision affected

How affected

S. 4....................

rep. No. 75, 2010

 

Overview

The Taxation Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Act 2002 (C2004A00973) was enacted to address the need for adjustments in the thresholds and rates associated with the Medicare Levy and the Medicare Levy Surcharge. This Act was passed by the Australian Parliament to amend existing taxation laws, ensuring that they align with the evolving economic and social landscape. The primary objective of the Act was to revise the income thresholds for the Medicare Levy Surcharge and the Medicare Levy itself, reflecting changes in the cost of healthcare services and ensuring that individuals and families contributing to the healthcare system do so in a fair and equitable manner. The Act makes specific amendments to the A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999 and the Medicare Levy Act 1986, updating the income thresholds that trigger the surcharge and the levy. By setting new thresholds, the Act aims to ensure that higher-income individuals contribute appropriately to the healthcare system while protecting lower-income earners from undue financial burden. This legislative action underscores the government's commitment to maintaining a balanced and sustainable healthcare financing system.

Scope and Application

The Taxation Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Act 2002 applies to various entities and individuals involved in taxation matters in Australia, specifically focusing on the Medicare Levy and the Medicare Levy Surcharge. This Act is applicable across the Commonwealth and amends the A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999 and the Medicare Levy Act 1986, impacting both the thresholds and the specific conditions under which the Medicare Levy and the Medicare Levy Surcharge are applied. It also includes amendments to the Income Tax Assessment Act 1936, which affects the calculation and application of these levies in the context of income tax assessments. The Act commenced on the date it received Royal Assent and has since been subject to amendments that have been incorporated as per the Notes section. The application of these amendments extends to specific financial years, with some applying retroactively to assessments for the 1997-98 year of income and others to later years, as specified within the schedules of the Act.

Key Provisions

The Taxation Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Act 2002 primarily amends the Medicare Levy Act 1986 and the A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999, introducing changes to the thresholds for the Medicare Levy and the Medicare Levy Surcharge (sections 3 and 4). Specifically, it increases the income thresholds at which these levies apply. For instance, section 3(1) updates the definition of phase-in limit and threshold amount, while section 15 and 16 of the A New Tax System Act similarly adjust the income thresholds for the Medicare Levy Surcharge. Under the Act, various obligations are placed on taxpayers and entities governed by these laws. These include the requirement to correctly apply the updated income thresholds when calculating the Medicare Levy and Surcharge for their income tax assessments (section 8). Employers must also ensure that any fringe benefits provided to employees are correctly assessed for the purposes of the Medicare Levy Surcharge (section 15). Furthermore, individuals must report their income accurately to determine their liability for the Medicare Levy and Surcharge (section 16). The Act imposes specific penalties for non-compliance with its provisions. For instance, section 4 of the Medicare Levy Act 1986 imposes a penalty equal to the amount of the unpaid levy for failing to pay the Medicare Levy or Surcharge. Additionally, section 285-55 of the Income Tax Assessment Act 1936 imposes a general penalty for failure to lodge a tax return or provide information, which may include fines up to a certain amount depending on the severity of the offence. The maximum penalties for these offences can include fines and, in some cases, imprisonment, depending on the specific provisions of the relevant acts.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.