From the AFR:
Tony Abbott has dropped his opposition to a tax increase to fund the national disability insurance scheme and will back the 0.5 percentage point rise in the Medicare Levy announced by Prime Minister Julia Gillard on Wednesday – but only if certain conditions are met.
In an announcement that increases the likelihood – but does not guarantee – that the $3.3 billion-a-year tax hike will be legislated before the election and come into effect from July 1, 2014, the Opposition Leader cautioned the government still had to explain where the rest of the funding would come from and exactly who would be eligible for coverage by the scheme.
He also warned that his support for the levy was temporary and a Coalition government would revoke it if and when the budget returned to “strong surplus”, which is 1 per cent of GDP, or $14 billion in today’s figures.
Obviously the levy is permanent. Whatever Abbott says, he won’t be able to revoke before Hell freezes over. Looks like a win for Gillard, for what that’s worth.
