Budget 2017: How much will health care costs go up?

Angus Kidman 9 May 2017 NEWS


The Medicare levy is going up for everyone, but some services will be cheaper.

What's changing?

The biggest change in the budget was one that wasn't predicted: the Medicare Levy will rise by 0.5% in 2019, from 2% to 2.5% of taxable income. The funds raised from that increase will be used to help fund the National Disability Insurance Scheme (NDIS).

As expected, the Medicare rebate freeze is being eliminated for many services over a period of three years. That might give more doctors an incentive to bulk bill for a wider range of services. A deal has been struck with Medicines Australia to lower the costs of some medicines, which should mean lower out-of-pocket expenses.

FULL GUIDE: How Budget 2017 will affect you

Who will this affect?

All taxpayers have to pay the Medicare levy (it should be automatically taken out by your employer).

When will the changes happen?

The changes will need to pass through Parliament. To impact that 2017-2018 financial year, that would need to happen before 1 July 2017.

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