Scott Morrison rules out plan to raise Medicare levy to fund aged care

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The Prime Minister has said it is not “in the government’s plan” to increase taxes while the economy is still struggling with the fallout from the coronavirus pandemic.

Responding to the Royal Commission’s report that a 1% increase could easily fund improvements to the current system, Mr Morrison hinted there would be increased funding for the sector in the upcoming Federal Budget – now due on 6 October after being postponed from May earlier this year.

However, he dismissed the idea of raising the Medicare levy to fund it.

“The budget is in October and I don’t engage in speculation on these measures, the aged care royal commission will bring out their recommendations next year,” he said.

“I understand they have made some comments around this issue today and I will take the recommendations by the Australian government, particularly in the middle of a pandemic, particularly when we are seeking to rebuild our economy.”

“The one (plan) where you build your economy back is you don’t hit it with high taxes. And that is not our plan, it has never been our plan, our plan to grow our economy has always been about having people’s backs.”

The PM said he would respond to the Royal Commission’s Final Report when it is released on 26 February next year.

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