The 2016/17 budget released on Tuesday says the threshold increase is expected to cost $280 million over four years.
The new thresholds are:
* $21,335 for singles
* $36,001 for childless couples, extra $3306 for each dependent child/student
* $33,738 for single seniors/pensioners
* $46,966 for childless senior/pensioner couples, extra $3306 for each dependent child/student
The government has made several changes to Medicare, stemming from the recommendations of its ongoing review of all 5700 items on the Medicare Benefits Schedule.
It says $5m will be saved by removing or updating items found to be out-of-date while other efficiencies will be achieved by consolidating and streamlining skin services and tests.
Instead, there'll be $3m to subsidise MRIs to detect breast cancers and $34m to list new Medicare items subsidising tests for 370,000 Australians at risk of diabetes-related eye diseases.
The budget shows $66m will be saved by using better data and analytics to detect fraud, abuse, waste and errors in Medicare claims.
There's also $21m for the previously-announced trial of Health Care Home - a plan to create tailored packages for those with chronic diseases to keep them healthier and avoid expensive hospital visits.
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