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Medicare Levy to Increase from July 2014

The DisabilityCare Australia legislation that provides for a half a percentage point increase in the Medicare levy has passed Parliament and become law.

The legislation will increase the Medicare levy from 1.5% to 2% of taxable income from 1 July 2014.

Note: This will have a flow-on effect to other tax rates that implicitly incorporate the Medicare levy, such as FBT, the family trust distribution tax rate and the excess non-concessional contributions tax rate, all of which increase to 47% from 1 July 2014.

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