Medicare changes can force doctors,nurses elsewhere

The Senate is debating another key Labor budget bill which aims to increase the income threshold - $50,000 to $100,000 for singles, and $100,000 to $150,000 for couples - at which the Medicare surcharge levy applies for taxpayers without private health insurance.

The coalition is opposing the measure forcing the government to rely on seven balance of powers senators to have its legislation pass the upper house.

Queensland Liberal senator Ian Macdonald warned the measure would add to the number of patients being cared for in the corridors of the states' already overcrowded hospitals.

"It is going to throw even more people into an already overcrowded system.

Already overworked doctors and nurses at these hospitals would soon be looking for other work, he said.

"So we cannot but make it worse."

Tasmanian Labor Senator Helen Polley supported the bill, saying it was an example of the government doing the right thing by families.

The changes to the threshold would leave single people up to $1,000 a year better off and couples up to $1,500 a year better off, she said.

The thresholds had not been increased since the surcharge levy was introduced by the previous Howard government in 1997.

Debate on the Tax laws (Medicare Levy Surcharge Thresholds) Bill 2008 was adjourned.