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

Angus Kidman 9 May 2017 NEWS

medicare

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.

Latest news headlines

Picture: Shutterstock

You might like these...

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms and Conditions and Privacy Policy.
Ask a question
Go to site