Treasury Laws Amendment (2023 Measures No. 2)

Current status

This bill became law on Jun 23rd, 2023.

Policy area

Budget, tax & economy

What does this bill do?

Low-income singles, families, seniors and pensioners get higher Medicare levyA tax many Australians pay through the tax system to help fund Medicare; this bill lifts the income thresholds so more low-income people pay less or none. thresholds from 2022-23, which can reduce or remove their Medicare levyA tax many Australians pay through the tax system to help fund Medicare; this bill lifts the income thresholds so more low-income people pay less or none. and Medicare levy surchargeAn extra charge for some higher-income people without private hospital cover; the bill raises the income threshold used to work out who pays it. bills.

Why was it introduced?

Existing tax and super rules left low-income households facing Medicare levyA tax many Australians pay through the tax system to help fund Medicare; this bill lifts the income thresholds so more low-income people pay less or none. bills, small businesses facing higher instalments, and Commonwealth Bank super members at risk of losing a government guarantee after fund mergers. The billThe bill that bundles the Medicare levy changes, the super guarantee protection, the farm carbon tax changes and the instalment uplift cap. lifts levy thresholds, caps 2023-24 PAYGThe system that makes businesses and some others pay tax in instalments during the year instead of all at once; this bill changes the uplift used for 2023-24. and GSTThe broad consumption tax on many sales in Australia; here, it is part of the instalment rules that small businesses pay during the year. instalment uplift at 6 per cent, preserves the guarantee, and changes farm carbon credit tax treatment.

Broader context

Before this bill, Medicare levyA tax many Australians pay through the tax system to help fund Medicare; this bill lifts the income thresholds so more low-income people pay less or none. thresholds had not yet been lifted for 2022-23, quarterly tax instalments for 2023-24 were set to rise under the usual formula, and pre-privatisation Commonwealth Bank super members could lose a long-standing government guarantee if their fund merged. In May 2023 the government packaged those pressures with farm carbon credit tax changes into one bill, and Parliament passed it in June so households, small businesses, eligible primary producers and affected CBA members could get the updated settings.

Key criticism

The main criticism was that the billThe bill that bundles the Medicare levy changes, the super guarantee protection, the farm carbon tax changes and the instalment uplift cap. was too narrow and modest to make much difference to the wider cost-of-living, housing and health pressures people were facing. That concern came mainly from coalition speakers who still supported the billThe bill that bundles the Medicare levy changes, the super guarantee protection, the farm carbon tax changes and the instalment uplift cap., so the criticism stayed limited and did not amount to opposition to the billThe bill that bundles the Medicare levy changes, the super guarantee protection, the farm carbon tax changes and the instalment uplift cap. itself.

Who supported it?

Stephen Jones MP introduced this bill. It passed on the voices.

Introduced in House 10 May 2023
Passed House 25 May 2023
Passed Senate 16 June 2023
Became law 23 June 2023

Did it become law?

Yes

Became law 23 June 2023

Final passage

Passed without a counted vote

Members called out ‘aye’ or ‘no’ — no individual votes were recorded.

Passage speed

44 days

From introduction to the latest recorded parliamentary step

Official record

View on APH

Parliament of Australia bill page

What does this bill do?

  1. Low-income singles, families, seniors and pensioners get higher Medicare levyA tax many Australians pay through the tax system to help fund Medicare; this bill lifts the income thresholds so more low-income people pay less or none. thresholds from 2022-23, which can reduce or remove their Medicare levyA tax many Australians pay through the tax system to help fund Medicare; this bill lifts the income thresholds so more low-income people pay less or none. and Medicare levy surchargeAn extra charge for some higher-income people without private hospital cover; the bill raises the income threshold used to work out who pays it. bills.

  2. People who were in the Commonwealth Bank Group Super fundThe old super fund for Commonwealth Bank staff before privatisation; the bill protects a government guarantee for some former members if their benefits move to another fund. before privatisation keep the Commonwealth guaranteeA government-backed promise that protects certain super benefits if the fund changes; on this page, it is kept for some pre-privatisation Commonwealth Bank members. if their benefits are moved into another regulated super fund through a merger.

  3. Eligible primary producers can treat income from selling Australian carbon credit unitsGovernment-issued credits linked to carbon projects on farms; the bill changes when and how primary producers are taxed on income from selling them. and related farm carbon activities as primary production incomeIncome treated as farm income for tax purposes; the bill lets eligible farmers count some carbon credit income this way so they can use farm tax settings., helping them access farm tax averagingA tax method that smooths a farmer's income over several years; the bill helps eligible carbon income qualify for it. and farm management depositsA tax tool that lets farmers set aside good years' income for later use; this bill helps some carbon-related income count toward it..

  4. Eligible primary producers are taxed on these Australian carbon credit unitsGovernment-issued credits linked to carbon projects on farms; the bill changes when and how primary producers are taxed on income from selling them. when they sell them, instead of being taxed each year as the units change in value.

  5. For 2023-24, PAYGThe system that makes businesses and some others pay tax in instalments during the year instead of all at once; this bill changes the uplift used for 2023-24. and GSTThe broad consumption tax on many sales in Australia; here, it is part of the instalment rules that small businesses pay during the year. instalments worked out with the quarterly instalment amount method use a 6 per cent GDPA measure of the size of the economy; this bill uses a 6 per cent uplift linked to GDP for some tax instalments in 2023-24. uplift instead of the usual formula, easing cash flow pressure for small and medium businesses.

Show source excerpts
  1. The amendments apply retrospectively from the start of the 2022-23 income year. However, they are beneficial to all affected taxpayers as they retrospectively reduce or remove liability for Medicare levy and the Medicare levy surcharge that would otherwise apply to affected taxpayers.
    Treasury Laws Amendment (2023 Measures No. 2) explanatory memorandum
  2. These amendments ensure that, for pre-privatisation members, the Commonwealth guarantee would continue to apply to the successor fund in the same way that it currently applies to the CBA Super fund. On that basis, there would be no change in rights between the CBA Super fund and the successor fund in regard to the guarantee. For avoidance of doubt these amendments also specify that it is not necessary to take the Commonwealth guarantee into consideration when determining whether those members will receive equivalent rights from the new fund following a successor fund transfer.[Schedule 2, item 1, subsection 117(3B) of Commonwealth Banks Act]
    Treasury Laws Amendment (2023 Measures No. 2) explanatory memorandum
  3. Proceeds from selling Australian carbon credit units and income derived from farm abatement activities supporting such units, are treated as primary production income for primary producers’ eligibility for concessional tax treatment under the Farm Management Deposit Scheme and tax averaging. Concessional treatment does not apply to companies and trusts.
    Treasury Laws Amendment (2023 Measures No. 2) explanatory memorandum
  4. The taxing point for Australian carbon credit units held by eligible primary producers will also be changed to the point of sale. Similarly, income derived from farm abatement activities with carbon service providers supporting such units first held on or after 1 July 2022 will be treated as primary production income for the purposes of the Farm Management Deposit Scheme and accessing income tax averaging arrangements.
    Treasury Laws Amendment (2023 Measures No. 2) explanatory memorandum
  5. The GDP adjustment factor is generally calculated using the formula in subsection 45-405(3) in Schedule 1 to the TAA 1953. However, for the 2023-24 income year, the GDP adjustment factor is set at 6 per cent.[Schedule 4, item 1, subsection 45-405(10) in Schedule 1 of the TAA 1953]
    Treasury Laws Amendment (2023 Measures No. 2) explanatory memorandum

Broader context for this bill

Before this bill, Medicare levyA tax many Australians pay through the tax system to help fund Medicare; this bill lifts the income thresholds so more low-income people pay less or none. thresholds had not yet been lifted for 2022-23, quarterly tax instalments for 2023-24 were set to rise under the usual formula, and pre-privatisation Commonwealth Bank super members could lose a long-standing government guarantee if their fund merged. In May 2023 the government packaged those pressures with farm carbon credit tax changes into one bill, and Parliament passed it in June so households, small businesses, eligible primary producers and affected CBA members could get the updated settings.

  1. 2022-23

    Existing Medicare levyA tax many Australians pay through the tax system to help fund Medicare; this bill lifts the income thresholds so more low-income people pay less or none. thresholds leave some low-income households exposed

    The billThe bill that bundles the Medicare levy changes, the super guarantee protection, the farm carbon tax changes and the instalment uplift cap. materials show the law still used the older Medicare levyA tax many Australians pay through the tax system to help fund Medicare; this bill lifts the income thresholds so more low-income people pay less or none. thresholds before lifting them for 2022-23, leaving some singles, families, seniors and pensioners facing levy liabilities.

    Treasury Laws Amendment (2023 Measures No. 2) explanatory memorandum ↗
  2. 2023-24

    Small businesses face higher quarterly tax instalments under the usual formula

    The user-supplied bill brief says the ordinary PAYGThe system that makes businesses and some others pay tax in instalments during the year instead of all at once; this bill changes the uplift used for 2023-24. and GSTThe broad consumption tax on many sales in Australia; here, it is part of the instalment rules that small businesses pay during the year. instalment uplift for 2023-24 would have pushed up quarterly amounts for small and medium businesses, creating cash-flow pressure.

    User-supplied bill brief ↗
  3. 10 May 2023

    Government introduces a bill tying cost-of-living relief to super and farm tax changes

    In his second reading speech, the Assistant Treasurer said the billThe bill that bundles the Medicare levy changes, the super guarantee protection, the farm carbon tax changes and the instalment uplift cap. would deliver targeted cost-of-living relief while also covering the Commonwealth Bank super guarantee and primary producer carbon credit tax treatment.

    Hansard ↗
  4. 19 June 2023

    Parliament passes the billThe bill that bundles the Medicare levy changes, the super guarantee protection, the farm carbon tax changes and the instalment uplift cap.

    Both houses passed the billThe bill that bundles the Medicare levy changes, the super guarantee protection, the farm carbon tax changes and the instalment uplift cap. in the same form, clearing the way for the Medicare levyA tax many Australians pay through the tax system to help fund Medicare; this bill lifts the income thresholds so more low-income people pay less or none., instalment, superannuation and farm tax measures to become law.

    Parliamentary timeline ↗
  5. 23 June 2023

    Royal AssentThe final step that makes a bill into an Act after Parliament passes it; the page says this is when the package became law. turns the package into law

    Royal AssentThe final step that makes a bill into an Act after Parliament passes it; the page says this is when the package became law. enacted the package so the updated thresholds, capped instalment uplift, preserved guarantee and carbon credit tax changes could take effect under the Act.

    Parliamentary timeline ↗

How did it move through Parliament?

House Senate
Introduced 10 May 2023

The billThe bill that bundles the Medicare levy changes, the super guarantee protection, the farm carbon tax changes and the instalment uplift cap. was formally presented to the chamber and read a first time, which starts its parliamentary journey.

Introduced and read a first time

Second reading opened 10 May 2023

A minister or sponsoring member moved the second reading, opening the main debate on the billThe bill that bundles the Medicare levy changes, the super guarantee protection, the farm carbon tax changes and the instalment uplift cap.'s purpose and principles.

Second reading moved

Second reading debate 23 May 2023

The billThe bill that bundles the Medicare levy changes, the super guarantee protection, the farm carbon tax changes and the instalment uplift cap. reached this recorded parliamentary step.

Sent to Federation Chamber for debate 23 May 2023

The billThe bill that bundles the Medicare levy changes, the super guarantee protection, the farm carbon tax changes and the instalment uplift cap. reached this recorded parliamentary step.

Referred to Federation Chamber

Second reading debate 25 May 2023

The billThe bill that bundles the Medicare levy changes, the super guarantee protection, the farm carbon tax changes and the instalment uplift cap. reached this recorded parliamentary step.

House second reading agreed 25 May 2023

The chamber agreed to the billThe bill that bundles the Medicare levy changes, the super guarantee protection, the farm carbon tax changes and the instalment uplift cap. at second reading, meaning it accepted the billThe bill that bundles the Medicare levy changes, the super guarantee protection, the farm carbon tax changes and the instalment uplift cap. in principle and allowed it to continue.

Second reading agreed to

Returned from Federation Chamber 25 May 2023

The billThe bill that bundles the Medicare levy changes, the super guarantee protection, the farm carbon tax changes and the instalment uplift cap. reached this recorded parliamentary step.

Reported from Federation Chamber

House third reading agreed 25 May 2023

The chamber agreed to the billThe bill that bundles the Medicare levy changes, the super guarantee protection, the farm carbon tax changes and the instalment uplift cap. at third reading, which completed passage through that chamber. Later message exchanges with the other chamber were still recorded afterwards.

Third reading agreed to

Introduced 13 June 2023

The billThe bill that bundles the Medicare levy changes, the super guarantee protection, the farm carbon tax changes and the instalment uplift cap. was formally presented to the chamber and read a first time, which starts its parliamentary journey.

Introduced and read a first time

Second reading opened 13 June 2023

A minister or sponsoring member moved the second reading, opening the main debate on the billThe bill that bundles the Medicare levy changes, the super guarantee protection, the farm carbon tax changes and the instalment uplift cap.'s purpose and principles.

Second reading moved

Second reading debate 16 June 2023

The billThe bill that bundles the Medicare levy changes, the super guarantee protection, the farm carbon tax changes and the instalment uplift cap. reached this recorded parliamentary step.

Senate second reading agreed 16 June 2023

The chamber agreed to the billThe bill that bundles the Medicare levy changes, the super guarantee protection, the farm carbon tax changes and the instalment uplift cap. at second reading, meaning it accepted the billThe bill that bundles the Medicare levy changes, the super guarantee protection, the farm carbon tax changes and the instalment uplift cap. in principle and allowed it to continue.

Second reading agreed to

Senate agreed to amendment packages 16 June 2023

The chamber considered amendments before the billThe bill that bundles the Medicare levy changes, the super guarantee protection, the farm carbon tax changes and the instalment uplift cap. moved to the next stage.

Committee of the Whole debate

Senate third reading agreed 16 June 2023

The chamber agreed to the billThe bill that bundles the Medicare levy changes, the super guarantee protection, the farm carbon tax changes and the instalment uplift cap. at third reading, which completed passage through that chamber.

Third reading agreed to

House agreed to Senate amendments 19 June 2023

The House dealt with Senate amendments or requests so both chambers could settle the billThe bill that bundles the Medicare levy changes, the super guarantee protection, the farm carbon tax changes and the instalment uplift cap. in the same form.

Consideration of Senate message

Passed both houses 19 June 2023

Both houses passed the billThe bill that bundles the Medicare levy changes, the super guarantee protection, the farm carbon tax changes and the instalment uplift cap. in the same form, completing parliamentary passage.

Finally passed both Houses

Assent 23 June 2023

The Governor-General gave Royal AssentThe final step that makes a bill into an Act after Parliament passes it; the page says this is when the package became law., turning the billThe bill that bundles the Medicare levy changes, the super guarantee protection, the farm carbon tax changes and the instalment uplift cap. into an Act.

The main case against this bill

The main criticism was that the billThe bill that bundles the Medicare levy changes, the super guarantee protection, the farm carbon tax changes and the instalment uplift cap. was too narrow and modest to make much difference to the wider cost-of-living, housing and health pressures people were facing. That concern came mainly from coalition speakers who still supported the billThe bill that bundles the Medicare levy changes, the super guarantee protection, the farm carbon tax changes and the instalment uplift cap., so the criticism stayed limited and did not amount to opposition to the billThe bill that bundles the Medicare levy changes, the super guarantee protection, the farm carbon tax changes and the instalment uplift cap. itself.

No party represented in the debate opposed the billThe bill that bundles the Medicare levy changes, the super guarantee protection, the farm carbon tax changes and the instalment uplift cap., but some said it did too little.

Too limited to meet broader pressures

Critics argued the measures were worthwhile but too small and piecemeal to seriously address bigger problems such as cost-of-living strain, housing pressure and weaknesses in the health system.

Raised by Coalition speakers including James Stevens and Anne Ruston Source ↗

Recorded votes

How the bill itself passed

The bill passed both chambers on the voices, so there is no list of individual Aye and No votes for final passage.

Passed

House passed the bill

House agreed to the billThe bill that bundles the Medicare levy changes, the super guarantee protection, the farm carbon tax changes and the instalment uplift cap.'s third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.

25 May 2023

Passed on the voices

In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.

Passed

Senate passed the bill

Senate agreed to the billThe bill that bundles the Medicare levy changes, the super guarantee protection, the farm carbon tax changes and the instalment uplift cap.'s third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.

16 June 2023

Passed on the voices

In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.

Amendments at a glance

Amendments grouped by chamber. These cards include amendment outcomes recorded without a counted division.

House

Carried

House accepted all Senate amendments

The House agreed to the amendments made by the Senate, so the billThe bill that bundles the Medicare levy changes, the super guarantee protection, the farm carbon tax changes and the instalment uplift cap. could pass both chambers in the same form.

Carried on voices

The chamber decided this amendment without a counted division, so there is no list of individual Aye and No votes.

Senate

Carried

Add Australians for Unity as a gift recipient

The Senate carried Senator Hume's proposal on voices, which would add Australians for Unity Ltd to the deductible gift recipientA group that can receive tax-deductible donations; the amendment on this page sought to add Australians for Unity Ltd to that list. list for the stated period.

Carried on voices

The chamber decided this amendment without a counted division, so there is no list of individual Aye and No votes.

Who spoke, and what they said

Start here — lead voices

Sponsor speech Supports

Stephen Jones

Australian Labor Party • MP 10 May 2023

Stephen Jones supports the billThe bill that bundles the Medicare levy changes, the super guarantee protection, the farm carbon tax changes and the instalment uplift cap. and says it delivers targeted tax relief, cash flow help for small business, changes to superannuation guarantees, and broader housing assistance.

Read in Hansard ↗
Lead supporting voice Supports

Jane Hume

Liberal Party • Senator 16 June 2023

Hume says the coalition will support the billThe bill that bundles the Medicare levy changes, the super guarantee protection, the farm carbon tax changes and the instalment uplift cap. because it largely implements coalition measures, especially help for small business, primary producers and homebuyers.

Read in Hansard ↗
Lead voice Supports

Anne Ruston

Liberal Party • Senator 16 June 2023

Ruston says the coalition supports the billThe bill that bundles the Medicare levy changes, the super guarantee protection, the farm carbon tax changes and the instalment uplift cap. because it indexes Medicare thresholds, but she argues Labor has otherwise weakened Medicare and the health system.

Read in Hansard ↗
Lead voice Supports

Jerome Laxale

Australian Labor Party • MP 25 May 2023

Laxale supports the billThe bill that bundles the Medicare levy changes, the super guarantee protection, the farm carbon tax changes and the instalment uplift cap. and urges the House to pass it because he says it delivers practical help on Medicare levyA tax many Australians pay through the tax system to help fund Medicare; this bill lifts the income thresholds so more low-income people pay less or none. thresholds, climate-related tax treatment for farmers, small business cash flow, and housing access.

Read in Hansard ↗

All speeches by bloc

Labor

3 speakers · 3 support

  1. Andrew Leigh Leigh supports the billThe bill that bundles the Medicare levy changes, the super guarantee protection, the farm carbon tax changes and the instalment uplift cap. and says it will deliver targeted tax relief, improve cash flow for primary producers and businesses, protect superannuation members in a merger, and expand housing assistance for people trying to re-enter the market.
    “Finally, the bill enables the National Housing Finance and Investment Corporation, soon to be renamed Housing Australia, to provide assistance to more Australians in need. Previous governments' failure to act seriously on housing has led to significant challenges across the country. It has meant homeownership is out of reach for many ordinary Australians. The bill will expand assistance to those who've not held a property interest in Australia in the preceding 10 years. This will allow those who have fallen out of home ownership, often due to financial hardship or a relationship breakdown, to re-enter the property market with government assistance. It also expands eligibility for single parents to include single legal guardians of children such as aunts, uncles and grandparents. The expansion in eligibility recognises the importance of stable and secure housing in providing a foundation for social and economic wellbeing. I commend the bill to the House.”

    Australian Labor Party • MP • 25 May 2023

    Read the full speech in Hansard ↗

Coalition

4 speakers · 4 support

  1. Paul Fletcher Paul Fletcher says the coalition will support the billThe bill that bundles the Medicare levy changes, the super guarantee protection, the farm carbon tax changes and the instalment uplift cap. because it carries forward coalition budget measures that help small businesses, primary producers and home buyers, and give some inflation relief to low-income earners.
    “I'm pleased to rise to speak on the Treasury Laws Amendment (2023 Measures No. 2) Bill 2023. I advise the House that the coalition will support this bill, as it implements a number of budget measures of the former coalition government. This bill, through these measures, provides support to primary producers and small businesses and for home ownership, and it provides relief to low-income earners struggling to deal with inflation. This is in marked contrast to the general themes of this government's budget, which left people in these categories behind.”

    Liberal Party • MP • 23 May 2023

    Read the full speech in Hansard ↗
  2. James Stevens James Stevens says the opposition supports the billThe bill that bundles the Medicare levy changes, the super guarantee protection, the farm carbon tax changes and the instalment uplift cap. because it includes a worthwhile CPIA measure of inflation used to update amounts in law; this bill uses it to raise Medicare levy thresholds and related thresholds. increase to the Medicare levyA tax many Australians pay through the tax system to help fund Medicare; this bill lifts the income thresholds so more low-income people pay less or none. low-income threshold, but criticises it as too limited to address the broader cost-of-living and housing pressures people are facing.
    “The previous speaker gave a general contribution on Medicare, and indeed my understanding from the second reading speech of the minister is that the relevant Medicare provision in this TLAB is an increase of 3.9 per cent to the low-income threshold for single, families, seniors et cetera, which is effectively achieving a CPI increase on that threshold, which is good and which we support.”

    Liberal Party • MP • 25 May 2023

    Read the full speech in Hansard ↗

Full record

Full chat