Tax Laws Amendment (Temporary Budget Repair Levy) Act 2014

No. 48, 2014 as amended

Compilation start date: 25 June 2014

Includes amendments up to: Act No. 110, 2014

About this compilation

This compilation

This is a compilation of the Tax Laws Amendment (Temporary Budget Repair Levy) Act 2014 as in force on 25 June 2014. It includes any commenced amendment affecting the legislation to that date.

This compilation was prepared on 22 October 2014.

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of each amended provision.

Uncommenced amendments

The effect of uncommenced amendments is not reflected in the text of the compiled law but the text of the amendments is included in the endnotes.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Modifications

If a provision of the compiled law is affected by a modification that is in force, details are included in the endnotes.

Provisions ceasing to have effect

If a provision of the compiled law has expired or otherwise ceased to have effect in accordance with a provision of the law, details are included in the endnotes.

Contents

1 Short title 1

2 Commencement 1

3 Schedule(s) 2

Schedule 1—Temporary budget repair levy 3

Income Tax Assessment Act 1997 3

Income Tax (Transitional Provisions) Act 1997 3

Schedule 2—Consequential amendments for fringe benefits tax 5

Fringe Benefits Tax Assessment Act 1986 5

Schedule 3—Amendment of the Taxation Administration Regulations 1976 7

Endnotes 8

Endnote 1—About the endnotes 8

Endnote 2—Abbreviation key 10

Endnote 3—Legislation history 11

Endnote 4—Amendment history 12

Endnote 5—Uncommenced amendments [none] 13

Endnote 6—Modifications [none] 13

Endnote 7—Misdescribed amendments [none] 13

Endnote 8—Miscellaneous [none] 13

An Act to amend the law relating to taxation, and for related purposes
1 Short title

This Act may be cited as the Tax Laws 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. Schedules 1, 2 and 3 The later of: (a) the day this Act receives the Royal Assent; and (b) the day the Income Tax Rates Amendment (Temporary Budget Repair Levy) Act 2014 receives the Royal Assent. However, the provision(s) do not commence at all if the event mentioned in paragraph (b) does not occur. 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) 1

Each Act, and each regulation, 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.

 2

The amendment of any regulation under subsection (1) does not prevent the regulation, as so amended, from being amended or repealed by the Governor-General.
Temporary budget repair levy

Income Tax Assessment Act 1997

 1 At the end of subsection 4-10(3)

Add:

Note 3: Section 4-11 of the Income Tax (Transitional Provisions) Act 1997 (which is about the temporary budget repair levy) may increase the amount of income tax worked out under this section.

Income Tax (Transitional Provisions) Act 1997

 2 At the end of Division 4

Add:

 4-11 Temporary budget repair levy

Temporary budget repair levy

Note: This section will also affect the income tax payable by some trustees who are taxed as if certain trust income were income of individuals. See sections 98 and 99 of the Income Tax Assessment Act 1936.

Amount of temporary budget repair levy

Note: See Income Tax Rates Act 1986.Part IV of the

Interaction with other provisions

Step 3A. Subtract your tax offsets from your basic income tax liability.

For the list of tax offsets, see section 13-1.

Step 3B. Add the extra income tax you must pay as mentioned in subsection 4-11(1) of the Income Tax (Transitional Provisions) Act 1997.

Step 4. If an amount of your tax offset for foreign income tax under Division 770 remains after applying section 63-10, subtract the remaining amount from the result of step 3B. The result is how much income tax you owe for the financial year.

Note: As a result, you cannot apply any tax offsets against temporary budget repair levy under Income Tax Assessment Act 1997 (apart from the foreign income tax offset applied under step 4 of the method statement in subsection (3)).Part 2-20 of the

Meaning of temporary budget repair levy year

 1

(1) You must pay extra income tax (temporary budget repair levy) for a financial year if:

 a

you are an individual; and

 b

your taxable income for the corresponding income year exceeds $180,000; and

 c

the financial year is a temporary budget repair levy year.

 2

Your temporary budget repair levy is worked out by reference to your taxable income for the corresponding income year using the rate or rates that apply to you.

 3

For the purpose of working out your income tax for the financial year:

 a

(a) Income Tax Assessment Act 1997 has effect as if it made you liable to pay the extra tax mentioned in subsection (1) of this section; andsection 4-10 of the

b

subsection 4-10(3) of that Act has effect as if step 4 of the method statement in that subsection were omitted and the following were substituted:

 4

To avoid doubt, temporary budget repair levy is not included in your basic income tax liability.

 5

(5) Each of the following is a temporary budget repair levy year:

 a

the 2014-15 financial year;

 b

the 2015-16 financial year;

 c

the 2016-17 financial year.

 Consequential amendments for fringe benefits tax

Fringe Benefits Tax Assessment Act 1986

 1 Subsection 65J(2A) (formula)

Repeal the formula, substitute:

 2 After Part XIC

Insert:

 135Y Temporary budget repair levy

Application

Modification for aggregate non-exempt amount

Modified rebate for certain not-for-profit employers

Note: The FBT rate is increased by 2 percentage points in the temporary budget repair levy years for FBT: see Fringe Benefits Tax Act 1986.section 6A of the

1

(1) This section applies to the temporary budget repair levy years for FBT (within the meaning of section 6A of the Fringe Benefits Tax Act 1986).

 2

The method statement in subsection 5B(1E) has effect as if:

 a

each reference in that method statement to $17,000 was instead a reference to $17,667; and

 b

the reference in that method statement to $30,000 was instead a reference to $31,177.

 3

The method statement in subsection 65J(2B) has effect as if the reference in that method statement to $30,000 was instead a reference to $31,177.

 3 Application

The amendment made by item 1 of this Schedule applies to assessments for the year of tax starting on 1 April 2015 and later years of tax.

 Amendment of the Taxation Administration Regulations 1976 1 Regulation 2 (at the end of the definition of top rate)

Add:

Note: This definition is modified by regulation 2A in the temporary budget repair levy years.

 2 After regulation 2

Insert:

 2A Temporary budget repair levy 1

This regulation applies to the temporary budget repair levy years.

Increase in highest rate

temporary budget repair levy year has the same meaning as in section 4-11 of the Income Tax (Transitional Provisions) Act 1997.

 2

These regulations have effect as if the highest rate specified in each of the following was increased by 2 percentage points:

 a

(a) the table in Income Tax Rates Act 1986;Part I of Schedule 7 to the

b

the table in Part II of that Schedule.

 3

In this regulation:

 3 Subregulation 36(2)

Omit “0.45”, substitute “the highest rate specified in the table in Income Tax Rates Act 1986”.Part II of Schedule 7 to the

4 Subregulation 36(3)

Omit “0.465”, substitute “the top rate”.

Endnotes

Endnote 1—About the endnotes

The endnotes provide details of the history of this legislation and its provisions. The following endnotes are included in each compilation:

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Endnote 5—Uncommenced amendments

Endnote 6—Modifications

Endnote 7—Misdescribed amendments

Endnote 8—Miscellaneous

If there is no information under a particular endnote, the word “none” will appear in square brackets after the endnote heading.

Abbreviation key— E ndnote 2

The abbreviation key in this endnote sets out abbreviations that may be used in the endnotes.

Legislation history and amendment history— E ndnotes 3 and 4

Amending laws are annotated in the legislation history and amendment history.

The legislation history in endnote 3 provides information about each law that has amended the compiled law. The information includes commencement information for amending laws and details of application, saving or transitional provisions that are not included in this compilation.

The amendment history in endnote 4 provides information about amendments at the provision level. It also includes information about any provisions that have expired or otherwise ceased to have effect in accordance with a provision of the compiled law.

Uncommenced amendments— E ndnote 5

The effect of uncommenced amendments is not reflected in the text of the compiled law but the text of the amendments is included in endnote 5.

Modifications— E ndnote 6

If the compiled law is affected by a modification that is in force, details of the modification are included in endnote 6.

Misdescribed amendments— E ndnote 7

An amendment is a misdescribed amendment if the effect of the amendment cannot be incorporated into the text of the compilation. Any misdescribed amendment is included in endnote 7.

Miscellaneous— E ndnote 8

Endnote 8 includes any additional information that may be helpful for a reader of the compilation.

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Endnote 5—Uncommenced amendments [none]

Endnote 6—Modifications [none]

Endnote 7—Misdescribed amendments [none]

Endnote 8—Miscellaneous [none]