2016 Federal Budget Update on Medicare Levy Low Income Threshold

Other Budget announcements 

Changes effective for the 2015/16 income year

1.1 Medicare levy low income thresholds for 2015/16 

For 2015/16, the Medicare Levy low income thresholds will be as follows:

                       •  Individuals                     $21,335               (previously $20,896)  

                       •  Families                         $36,001                (previously $35,261) 

The family income threshold (i.e., $36,001) will be increased by $3,306 (previously $3,238) for each dependent child or student. 

For single seniors and pensioners with no dependants who are eligible for the seniors and pensioners  tax offset, the threshold will be increased to $33,738 (previously $33,044).     

1.2 Income tax relief for Australian Defence Force personnel deployed  overseas  

The government will provide a full income tax exemption for Australian Defence Force personnel  deployed on Operation PALATE II in Afghanistan. This income tax exemption has effect from 1 January 2016, and will remain in effect until 31 December 2016.  

The government will also update the coordinates for Operation MANITOU in international waters, with  effect from 14 May 2015, and Operation OKRA in the Middle East, with effect from 9 September 2015, to reflect the actual areas covered by the operations.    

(Note: The information is provided by the National Tax and Accountants' Association - NTAA)