VICTORIAN Premier Daniel Andrews believes a hike in the Medicare levy of about $1000 a year for the average family could pay for a funding black hole in the health system.
HE wants Prime Minister Tony Abbott, and state and territory leaders when they meet on Wednesday to consider increasing the base rate of the Medicare levy as a fairer alternative to hiking up the GST.
He says a one per cent increase in the Medicare levy, from two to three per cent, would cost $1000 for families earning $100,000 a year. He accepted that the average family might be angry about paying more taxes, but says they should direct that anger at Mr Abbott. “Let’s not for a moment lose sight why there is a $70 billion hole in our hospital budget. It’s because Tony Abbott can’t keep his promises and has hacked into hospitals like no other prime minister,” he said in Melbourne on Tuesday. Mr Andrews has said he will not support an increase in the GST because he believes it is inequitable. He says increasing the Medicare levy is fairer because it is calculated as a percentage of income.