Canberra has back-flipped on a levy that could have cost taxpayers $400 a year. The Treasurer says he won’t need to raise the medicare levy half a per cent because of a revenue boom.

Courtney McCallister reports.

TRANSCRIPT

The decision to scrap the proposed levy increase, will put up to $900 more in taxpayers’ pockets.

The increase was originally mooted in last year’s Budget.

But Treasurer Morrison says a company bounce-back from the mining downturn and a $1.2 billion rise in income tax collection means the extra impost is no longer needed.

Scott Morrison, Federal Treasurer: “Australians were quite prepared to do this. They thought it was a good thing to do to support people with disabilities. But I tell you if you don’t have to do it, then you shouldn’t.”

Four-hundred and forty thousand Australians will benefit from the National Disability Insurance Scheme.

Canberra’s change of tune is not satisfying experts in the disability sector.

Graeme Innes, Former Disability Discrimination Commissioner: “The scheme is not appropriately funded. The scheme is not operating effectively as it could be.”

The half-per cent Medicare levy rise would have contributed eight billion dollars to the economy over four years.

The Treasurer says, the money for the NDIS is still safe and, Australians won’t have to nurse their bank accounts.

Scott Morrison, Federal Treasurer: “That’s a win for taxpayers.”

Courtney McAllister, QUT News.