Medicare Levy Surcharge 2009 Changes have Arrived

Following up on our previous post regarding changes to the Medicare Levy Surcharge in 2009, a modified Bill has passed through the Senate.

For the 2009 year, Medicare Levy Surcharge income thresholds have changed from $50,000 to $70,000 for singles and from $100,000 to $140,000 for couples and will rise annually in line with inflation. The Medicare Levy Surcharge is 1% of taxable income where the taxable income exceeds the income thresholds.

We understand the complexities of public policy, costs and the effect on consumers, but we believe the increase is fair and appropriate.

As practitioners we often observe the effect of "bracket creep" on taxpayers. Each new tax year we observed more and more taxpayers creeping over the threshold since the introduction of the surcharge in the 2001 year.

My Tax Zone