Some Australians to pay more for health

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SOME Australians will pay higher Medicare levies and more for private health insurance from next year.

LEGISLATION to freeze income thresholds for three years for the Medicare levy surcharge and private health insurance rebate passed parliament on Tuesday.

The freeze will be in place from July 2015. Australians not yet paying the Medicare levy surcharge could rise over the threshold as their incomes increase, and have to pay it for the first time. Others may move into a higher bracket. The surcharges only apply to individuals who earn over $88,000, or families who earn more than $176,000, and who don’t have private health insurance. It’s not the same as the Medicare levy, which is paid at a lower income rate. The pause on indexation will also apply to rebates for private health insurance. Health Minister Peter Dutton says four per cent of more than 6.2 million people covered by private health insurance will be affected by the measure. The budget measure will save the government $599 million, which will be redirected into the Medical Research Future Fund. The bill passed with bipartisan support.