The Fund will be credited with revenue raised from the Medicare levy (excluding amounts to meet the Government’s commitment to fund the National Disability Insurance Scheme) as well as a portion of personal income tax receipts sufficient to cover the estimated costs of essential health care provided under the MBS and PBS.
Each year before the Budget, the Government will adjust annual contributions to the fund to ensure that it meets forecast expenditure from the MBS and PBS.
Why is this important?
It is important to provide a clear guarantee about the future of our world leading Medicare and PBS programs and to provide transparency about what it really costs to run.The Medicare Levy does not pay for all of the costs of running Medicare and the PBS – in fact it meets less than half these costs. This is why a proportion of the Government’s income tax revenue will also be paid into the Medicare Guarantee Fund to cover all the Government’s Medicare and PBS costs.
Who will benefit?
All Australians can be certain they will continue to have access to the essential health care services they need.
How much will this cost?
This measure will have nil fiscal impact.