COALITION SCRAPS MEDICARE HIKE

The Coalition government has withdrawn plan to increase the Medicare levy from July 2019, a 2017 budget proposal that would have raised $8 billion to help fund the National Disability Insurance Scheme.

The Sydney Morning Herald reports that Treasurer Scott Morrison will formally announce the plans today as part of a preview of further income tax cuts in the 2018 budget. Morrison will also argue that added revenue from recent tax receipts, up $4.8 billion higher in February than he had estimated in December last year, mean that the planned levy increase from 2% to 2.5% is no longer necessary.