A bill to increase the Medicare levy and raise $8 billion to fund the National Disability Insurance Scheme (NDIS) will be introduced to Parliament today.
The levy is a charge paid by most taxpayers to fund Australia's public health system and the Government wants to increase it from 2 per cent to 2.5 per cent.
The Coalition will introduce the bill to the House of Representatives today, but it will need to convince the Senate to pass it.
The rise is due to come in from July 2019, and the money raised would go toward fully funding the NDIS, which is facing a multi-million-dollar funding black hole.
But Labor will only support the increase for Australians earning more than $87,000 a year, arguing high-income earners must pay a greater contribution.
The Coalition is continuing negotiations with the Greens and Senate crossbenchers.
Senator Derryn Hinch is on board with the changes, while the Nick Xenophon Team and One Nation said they were still in discussions with the Government.
The levy increase would equate to an extra $375 a year for those earning $75,000.
Treasurer Scott Morrison has previously said the Government would not engage in horse-trading to get the bill through Parliament.
The Opposition has continued to insist the Coalition should instead abandon its planned corporate tax cuts, and extend a temporary deficit levy on high-income earners, which is due to expire this year.
