Low-income earners in Australia are set to receive increased tax relief of up to $172 through the Medicare levy, aligned with inflation.
The adjustment applies to the income threshold triggering the 2% levy, representing a 7.1% rise.
The change deviates from the government's commitment to preserving stage 3 tax cuts, offering a $804 reduction for most taxpayers.
The Medicare levy, a flat 2% charge akin to extra income tax, currently exempts single earners below $24,276, with gradual phasing for incomes between $24,276 and $30,345.
The proposed change raises the thresholds to $26,000 and $32,500, benefiting an estimated 1.2 million Australians, including single individuals and pensioners.