Income Tax Rates Amendment (Temporary Budget Repair Levy) Act 2014

No. 45, 2014

An Act to amend the Income Tax Rates Act 1986, and for related purposes

Contents

1 Short title 1

2 Commencement 2

3 Schedule(s) 2

Schedule 1—Temporary budget repair levy 3

Income Tax Rates Act 1986 3

Income Tax Rates Amendment (Temporary Budget Repair Levy) Act 2014

No. 45, 2014

An Act to amend the Income Tax Rates Act 1986, and for related purposes

[Assented to 25 June 2014]

The Parliament of Australia enacts:
1 Short title

This Act may be cited as the Income Tax Rates Amendment (Temporary Budget Repair Levy) Act 2014.
2 Commencement 1

Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information Commencement information Commencement information
Column 1 Column 2 Column 3
Provision(s) Commencement Date/Details
1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table The day this Act receives the Royal Assent. 25 June 2014
2. Schedule 1 At the same time as Schedule 1 to the Tax Laws Amendment (Temporary Budget Repair Levy) Act 2014 commences. 25 June 2014

Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

 2

Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
3 Schedule(s)

Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
Temporary budget repair levy

Income Tax Rates Act 1986

 1 After Part III

Insert:

 32 Interpretation

In this Part:

temporary budget repair levy year means a year of income corresponding to a temporary budget repair levy year (within the meaning of section 4-11 of the Income Tax (Transitional Provisions) Act 1997).

 33 Application

This Part applies in relation to the temporary budget repair levy years.

 34 Extra income tax for temporary budget repair levy

The rate of extra income tax payable as mentioned in Income Tax (Transitional Provisions) Act 1997 (temporary budget repair levy) for a financial year on a taxpayer’s taxable income for the corresponding year of income is the rate applicable under the table.section 4-11 of the

35 Temporary budget repair levy for other income tax rates

References to 45%

Note: Some provisions, such as the Schedules, are excluded from this list so as not to duplicate the operation of the levy.

References to maximum rate

Note: This subsection does not cover references to the “highest rate” in subsection 13(1) and 15(8), which are about phase-out limits.

 1

The provisions of this Act set out in column 1 of the table apply as if each reference in the provision to 45% was increased by 2 percentage points.

 2

The following provisions of this Act apply as if the maximum rate specified as mentioned in the provision was increased by 2 percentage points:

 a

paragraph 28(b) (rate for subsection 98(4) of the Assessment Act);

 b

paragraph 29(2)(a) (rate for no-TFN contributions income).

 36 Rate where Division 6AA of Part III of the Assessment Act applies 1

This section applies in respect of the following amounts:

 a

so much of the eligible taxable income of a resident taxpayer who is a prescribed person for the purposes of Division 6AA of Part III of the Assessment Act as exceeds $416 but does not exceed $180,000;

 b

so much of the eligible taxable income of a non-resident taxpayer who is a prescribed person for the purposes of that Division as does not exceed $180,000;

 c

so much of a share of the net income of a trust estate in respect of which the trustee is liable to be assessed and to pay tax as:

 i

is a share to which that Division applies; and

 ii

does not exceed $180,000.

 2

Increase by 2 percentage points the rate of tax that would, apart from this section, apply to the amount.

 37 Operation of this Part

Nothing in the provisions of this Act (other than this Part) limits the operation of this Part.

Note: This reflects the fact that temporary budget repair levy is extra income tax.

[Minister’s second reading speech made in—

House of Representatives on 13 May 2014

Senate on 16 June 2014]

(95/14)