Strong and stable funding

Locking in future funding

People with disability, their families and carers deserve certainty that DisabilityCare Australia will be funded over the longer term. For this reason, from 1 July 2014 the Medicare levy will increase by half a percentage point from 1.5 to 2 per cent of taxable income.

Between 2014–15 and 2018–19 approximately $20.4 billion will be raised as a result of this increase.

Savings to deliver DisabilityCare Australia

To ensure that DisabilityCare Australia will be fully funded, the Government has needed to make tough decisions. This important reform will be delivered through part of the savings from reforms to the Government's assistance for private health insurance, reforms to retirement incomes and the phase-out of the net medical expenses tax offset as DisabilityCare rolls out and other long-term savings decisions in the 2013‑14 Budget.

Together with the increase to the Medicare levy and contributions from State and Territory governments, these measures will make room in the budget for DisabilityCare Australia into the future.

Meeting the costs of DisabilityCare Australia

• (a) Selected long-term savings from 2013‑14 Budget and 2012‑13 MYEFO.
• (b) Net of Dental Health Reform Package expenditure.