Treasury Laws Amendment (2021 Measures No. 3) 2021

✦ Plain-English Summary

# Treasury Laws Amendment (2021 Measures No. 3) Bill 2021

## What it does
This bill makes five separate changes to tax, housing, and welfare laws. The main updates adjust Medicare levy thresholds (how much you earn before Medicare levy applies), create a new home-buying scheme for first-home buyers, provide tax-free payments to Thalidomide survivors, exempt flood recovery grants from tax, and expand the list of organisations eligible for tax deductible donations.

## Why it matters
For most people, the Medicare levy threshold increase means slightly more of your income stays untouched before the levy kicks in. The Family Home Guarantee scheme directly helps eligible first-home buyers access mortgages with smaller deposits. Thalidomide survivors and flood victims get genuine financial relief without tax penalties.

## Key details
- **Medicare levy thresholds increase** — The income level at which you pay Medicare levy surcharge rises from $22,801 to $23,226 (applies from the day after the bill passes)
- **Family Home Guarantee starts July 1, 2021** — First-home buyers can access government-backed mortgages with deposits as low as 5%
- **Thalidomide and flood relief are tax-free** — Payments to Thalidomide survivors and 2021 flood/storm recovery grants won't be counted as income for tax, welfare, or veterans' benefits purposes

Official Description

Amends the: A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999 and Medicare Levy Act 1986 to: increase the Medicare levy and Medicare levy surcharge low-income threshold amounts for individuals, families and individual taxpayers and families eligible for the seniors and pensioners tax offset; and increase the phase-in limits as a result of the increased threshold amounts; National Housing Finance and Investment Corporation Act 2018 to expand the objects of the Act to include the National Housing Finance and Investment Corporation improving housing outcomes for Australians by assisting earlier access to the housing market by single parents with dependants; Income Tax Assessment Act 1997 , Social Security Act 1991 and Veterans' Entitlements Act 1986 to provide that annual and lump sum payments made by the Commonwealth to thalidomide survivors are exempt from income tax and do not count as income for the purposes of any income support payments; and Income Tax Assessment Act 1997 to: make disaster recovery grant payments in relation to the storms and floods that occurred in February and March 2021 non-assessable non-exempt income; update the list of deductible gift recipients to include six new entities; and extend the period in which two entities are deductible gift recipients.

Committee Referrals

Senate Standing Committee for the Scrutiny of Bills

Full bill PDF →APH page →

Audit History

Introduced

13 May 2021

Last updated on APH

10 Apr 2026

Outcome date

29 June 2021

Last checked by Crossbench

yesterday

Full text indexed

yesterday

🗳️

No formal division recorded

This bill passed by voice vote — parliament agreed without calling a formal count. A division is only recorded when a member explicitly requests one.

Constituent votes

Voting is closed — this bill has been decided by parliament.

No votes yet.

No votes were recorded for this bill.

🔒 Voting closed — this bill has been decided by parliament