The Government expects every Australian understands the importance of health care, and consider to increase Medicare levy and the new law will set up a Medicare Guarantee Fund in national disability insurance scheme (NDIS). An additional contribution from income tax revenue. From 1 July 2019, the Medicare levy will increase by half a percentage point from 2 to 2.5 per cent of high-income earners taxation income. And the bill will provide transparency about what it really costs to run Medicare Guarantee Fund.
The National Disability Insurance Scheme is the new way of proving support for Australians with disability, their family and carers and they will get the support they need.
Is it fear high-income earners must pay a greater contribution ?
The NDIS is support for each of Australian that means all of the Australians can get the support and welfare in this insurance scheme. The fear and smart way that could be each of the Australians have the responsibility to pay the taxation income. Because of each of the people receive the disposable income are different so the government can establish a policy to decide what percent of the income tax the household have to pay. For example in the lower income level can allow them pay less tax, in contrast if the people receive higher income level they have ability to pay more. However the main idea is everyone have to pay this taxation income not just focus on the higher income earners.
Impact on the household living standards ?
Increase the Medical levy contributed on the income tax which means decrease the household living standards. That will lead to people decrees their spending on purchase the goods and services and living standards. It will immediately decrease the consumer consumptions and AD. It is damage the economic activities and economic economic.
Impact on the Economic growth ?
The government will increase the revenue cause push up the income tax and household have to pay more to the government. Firstly, the government have the enough funds and don’t need to borrow the money for oversea to help to country development, decrease the current account deficit and benefit for the economic growth and decrease the government’s pressure. Secondary, the government can spend the funds to develop other areas such as education, health care and transportation. That could provide the job opportunities for the people who want to find a job, increase the employment rate and increase the household living standards.
Choose one of the questions to answer:
1. High-income earners must pay a greater contribution? Agree or disagree and your opinion?
2. Increase the Medicare levy will impact on which area? (Expect the living standard and economic growth )