How the Medicare levy increase will affect you

Whenever there is a tax hike it usually makes big news because everyone hates paying more taxes. Around two weeks ago, Julia Gillard announced that her government is proposing to increase the Medicare levy from 1.5% to 2% to help partially fund the National Disability Insurance Scheme (NDIS).

Yes, we should help the disadvantaged in our community and it has been reported that the NDIS supports around 410,000 people with disabilities around Australia. While it is for a good cause, I still hate paying more tax! Below is a table of roughly how much more you would have to pay once the increased levy starts:

Since the Prime Minister's announcement, the Liberal opposition is now considering to support the levy increase but perhaps reduce the levy later on when the nation's budget is in surplus. This means either way the tax hike is probably going to happen.

Now like most Australians, I'm usually politically neutral and enjoy a good laugh when a comedian does a funny impression of a politician. Plus I recently realised that my vote is practically useless because my electorate where I live is something like 99.99% Labor (figure is exaggerated but it is a strong Labor seat).

I can reveal that I do vote Liberal because I run a small business that supports other small businesses and I have found that Liberal party policies generally favour small business owners. I said generally so please do your own research before voting later this year!

For all the mums and soon-to-be-mums out there, I hope you have a lovely weekend and...