The Rudd Government has bowed to pressure from the Greens and Independent Senator Nick Xenophon and slashed the proposed income thresholds for the Medicare surcharge to $75,000 for singles, although Health Minister Nicola Roxon wants to leave the proposed new threshold for couples unchanged at $150,000.

Woodside Petroleum’s Chief Financial Officer Mark Chatterji said today that the oil and gas giant cannot simply absorb the cost of the Rudd Government’s proposed $2.5 billion new tax on condensate. “In order to stay competitive, businesses seek to pass cost increases on to their customers,” he said in a statement.

The Coalition will vote against a number of budget measures when they go before the Senate later this year. The Government will then need the votes of five Greens senators, Independent Senator Nick Xenophon and Family First Senator Steve Fielding to pass its legislation.