I'll ditch the NDIS levy: Palmer Clive Palmer says there is no justification for raising the Medicare Levy to help pay for the NDIS. CLIVE Palmer says his United Australia Party would abolish the increase in the Medicare Levy designed to help pay for the national disability insurance scheme (NDIS) if it is elected at the September election. Prime Minister Julia Gillard announced on Wednesday the levy would rise 0.5 percentage points to two per cent from July 2014. Opposition Leader Tony Abbott said on Thursday the coalition would consider the rise. But Mr Palmer says there is "no justification" in raising the levy. "Mr Abbott and Ms Gillard are incompetent and this is resulting in this increase of the Medicare levy," he said in a statement on Thursday. He said both leaders had resorted to increasing taxes to pay for their policies. "When the United Australia Party takes government at the next federal election, any increase in the levy will be abolished," Mr Palmer said. The Medicare levy increase will raise about $3.3 billion a year - less than half the $8 billion or more to run the care scheme each year when it begins full operation from 2018/19. It will add $350 a year to the tax bill of a person earning $70,000 a year.