Prime Minister Julia Gillard has revealed today (May 1) that Australia's Medicare levy is set to increase from 1.5 per cent to 2.0 per cent.
It is expected that this new legislation will be introduced on July 1 of next year; however, Ms Gillard said that Australians will be given the opportunity to have their say in September this year.
The billions of dollars this proposed tax hike is projected to raise will go towards funding the National Disability Insurance Scheme (NDIS).
This is despite the government's promise when the NDIS was announced last year that no levy increases would be implemented to help support it.
The NDIS is intended to cover people with permanent disabilities of all varieties.
Approximately 26,000 people throughout Australia will be eligible to participate in the scheme, and it is believed these extra funds will give them and their families the certainty and security they crave.
In this morning's public announcement, Treasurer Wayne Swan stated that the government expects to see three billion dollars raised in the year following this new legislation's introduction.
He claimed that the Medicare levy increase "is in the interest of the country" and such changes were for the "greater public good".
Ms Gillard shared his sentiments, admitting she is aware that "this is a huge change for our nation", but she believes it is a necessary one.