[Greens-Media] Medicare Levy Surcharge should be scrapped.

[Edwards, Jon (Sen K. Nettle)]

22.08.06

Medicare Levy Surcharge should be scrapped.


Greens Health spokesperson, Senator Kerry Nettle, today commented that
the growing number of taxpayers being fined by the government via the
Medicare Levy Surcharge are being forced into subsidising other people's
private health insurance bills with no net benefit to public health.

"The figures published in today's Age newspaper expose the Medicare Levy
Surcharge as a tax gouge that does not benefit public health and should
be scrapped," Senator Kerry Nettle said.

"Taxpayers should know that the Medicare Levy and the surcharge do not
get spent on Medicare. It is simply a tax gouge to fine them for not
buying an insurance product.

"There is no clear evidence that the Private Health Insurance Rebate has
taken any pressure off public hospitals. However, the $3 billion dollars
currently spent on the private health insurance rebate would make a
significant impact on public health outcomes if spent on Medicare rather
than private health insurance.

"The government has taken over a billion dollars over the last 9 years
through the Medicare Levy Surcharge fine and in the same period spent
$17 billion on the Private Health Insurance Rebate.

"Taxpayers who pay this levy out of a refusal to buy a private health
insurance product are right to be annoyed that they are being fined and
the proceeds of this fine are then spent on subsidising private health
insurance for others."

Contact - Jon Edwards 0428 213 146