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Review of the impact of the new Medicare Levy Surcharge thresholds on public hospitals.

Reports by KPMG: Review of the impact of the new Medicare Levy Surcharge thresholds on public hospitals Year 1 Review Report 2010 and Review of the impact of the new Medicare Levy Surcharge thresholds on public hospitals Year 2 Review Report 2011.

The Tax Laws Amendment (Medicare Levy Surcharge Thresholds) Act (No 2) 2008 (the Act) lifted the Medicare Levy Surcharge (MLS) income thresholds for single people from $50,000 to $70,000 per year and from $100,000 to $140,000 per year for couples/families.

The Act requires an independent review of the operation of the Act and its impact on public hospitals including the number of episodes of care, the impact on operating costs and the impact on elective surgery waiting lists (ESWL). The Department of Health and Ageing engaged KPMG on 25 June 2009 to undertake the three annual independent reviews required.

Year 1 Report 2010

This is the first annual review. The first review considered Australian Hospital Statistics (AHS) Report data from 2007-08 as a baseline to enable comparison of hospital activity with subsequent years following the implementation of changes to the Surcharge. The Minister tabled the report in both Houses of Parliament on 22 June 2010.

• Review of the impact of the new Medicare Levy Surcharge thresholds on public hospitals Year 1 Review Report 2010 (PDF 409 KB).
• View the Review of the impact of the new Medicare Levy Surcharge thresholds on public hospitals Year 1 Review Report 2010 as a web page.

Year 2 Report 2011

This is the second annual review. The second review found that changes to the MLS did not affect public hospital activity trends or ESWL within the period reviewed (to June 2009 for hospital separations and to March 2010 for ESWL), and there has been no significant impact on public hospital operating costs.

• Review of the impact of the new Medicare Levy Surcharge thresholds on public hospitals Year 2 Review Report 2011 (Word 1825 KB). Note: Large file warning.
• Review of the impact of the new Medicare Levy Surcharge thresholds on public hospitals Year 2 Review Report 2011 (PDF 343 KB).
• View the Review of the impact of the new Medicare Levy Surcharge thresholds on public hospitals Year 2 Review Report as a web page.

Year 3 Review of the impact of the new Medicare Levy Surcharge thresholds on public hospitals

This is the third and final annual review. The review found that changes to the Medicare Levy Surcharge (MLS) thresholds had no discernible impact on public hospital activity trends or elective surgery waiting lists (ESWL) within the period reviewed (to June 2010 for hospital separations and to September 2010 for ESWL). There has been no significant impact on public hospital operating costs that could be attributed to the MLS changes.

• Review of the impact of the new Medicare Levy Surcharge thresholds on public hospitals Year 3 Final Review Report 2012 (Word 1455 KB). Note: Large file warning.
• Review of the impact of the new Medicare Levy Surcharge thresholds on public hospitals Year 3 Final Review Report 2012 (PDF 343 KB).

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