In 1984 Medicare was introduced in Australia. This provided for universal funding for health care, paid for by a 2 per cent levy on incomes. In effect, income taxes were raised by 2 per cent to fund health care in Australia. The Medicare levy represents

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The Medicare levy represents the ability-to-pay principle, because high-income earners can more easily bear the burden of taxes. While it is true that high-income earners may use more public health care services, the purpose of the levy is not to directly link payment to usage (i.e. the benefits principle). Additionally, the levy is not regressive, as it is a flat percentage of income and therefore higher-income earners will pay a greater dollar amount in taxes.

In 1984 Medicare Was Introduced in Australia