Responsibly funding essential services

The Government is securing funding for crucial services that Australians rely on

Medicare Guarantee Fund

The Government is guaranteeing Medicare to ensure Australians have access to essential health care services when they need them.

A new Medicare Guarantee Fund will be established to meet the ongoing costs of the Medicare Benefits Schedule and the Pharmaceutical Benefits Scheme.

In this Budget, the Government is providing $1 billion to phase in the reintroduction of indexation for certain items on the MBS, while $1.2 billion will be provided for new and amended listings on the PBS, to provide patients with access to new services and affordable, often lifesaving, medicines.

National Disability Insurance Scheme

The Government will deliver the NDIS. It is committed to fully fund and safeguard the NDIS, ensuring that Australians with permanent and significant disability can exercise choice and control in accessing vital care and support.

From 1 July 2019, the Medicare levy will increase by half a percentage point from 2 to 2.5 per cent of taxable income. The additional revenue raised will be directed to the NDIS Savings Fund, along with NDIS underspends and previous contributions to the fund from across government, to ensure the NDIS is fully funded.

Levy for Australian skills training

Businesses employing foreign workers on certain skilled visas will be subject to a new levy to fund training for Australians through the Skilling Australians Fund.

This new approach will introduce an annual foreign worker levy of $1,200 or $1,800 for temporary skilled visas and a $3,000 or $5,000 one-off levy for those on certain permanent skilled visas, depending on the size of the business.

Over the next four years, more than $1.2 billion will be raised from this new levy that will contribute directly to a new Commonwealth-State Skilling Australians Fund to replace the expiring Skills National Partnership.