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This is a Bill, not an Act. For current law, see the Acts databases.
1998
The Parliament of
the
Commonwealth of
Australia
HOUSE OF
REPRESENTATIVES
Presented and read a first
time
A New Tax
System (Fringe Benefits Reporting) Bill
1998
No. ,
1998
(Treasury)
A Bill
for an Act to implement A New Tax System by providing for employees’
fringe benefits to be taken into account in working out their tax, higher
education contributions and child support payments, and for related
purposes
ISBN: 0642 379076
Contents
Fringe Benefits Tax Assessment Act
1986 3
Fringe Benefits Tax (Application to the Commonwealth) Act
1986 15
Part 1—Reporting reportable fringe benefits amounts and
totals 17
Division 1—Reporting on group
certificates 17
Division 2—Returns of reportable fringe benefits
totals 22
Part 2—Effect of fringe benefits on deductions for superannuation
contributions 23
Part 3—Effect of fringe benefits on rebate for personal
superannuation
contributions 24
Part 4—Effect of fringe benefits on rebate for contributions to
spouse’s
superannuation 25
Part 5—Medicare levy surcharge on reportable fringe benefits
total 26
Higher Education Funding Act
1988 28
Medicare Levy Act
1986 30
Superannuation Contributions Tax (Assessment and Collection) Act
1997 32
Superannuation Contributions Tax (Members of Constitutionally Protected
Funds) Assessment and Collection Act
1997 32
A Bill for an Act to implement A New Tax System by
providing for employees’ fringe benefits to be taken into account in
working out their tax, higher education contributions and child support
payments, and for related purposes
The Parliament of Australia enacts:
This Act may be cited as the A New Tax System (Fringe Benefits
Reporting) Act 1998.
(1) This Act commences on the day on which it receives the Royal
Assent.
(2) However, item 13 of Schedule 2 commences on the 28th day after the day
on which this Act receives the Royal Assent.
Subject to section 2, 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Act is amended or repealed as set out in the applicable items in the Schedule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.
Fringe
Benefits Tax Assessment Act 1986
1 After Part II
Insert:
The following is a simplified outline of this Division:
This Division explains how to work out an employer’s fringe benefits
taxable amount for a year of tax. This is the amount on which the employer must
pay fringe benefits tax (see section 66).
(1) An employer’s fringe benefits taxable amount for a
year of tax is the amount worked out using the formula:
Note: Other provisions affect the fringe benefits taxable
amount. For example, see section 124 (about assessments).
(2) Subsection (1) is subject to section 135G.
Note: Section 135G allows the fringe benefits taxable amount
to be worked out using the employer’s aggregate fringe benefits amount
from an earlier year of tax in special cases.
Work out an employer’s aggregate fringe benefits
amount for a year of tax as follows:
Method statement
Step 1. Work out under Division 3 for each of the employer’s
employees the individual fringe benefits amount for the year of tax in respect
of the employment of the employee by the employer.
Step 2. Add up all the individual fringe benefits amounts worked out
under Step 1.
Step 3. Add up the taxable value of every excluded fringe benefit
relating to an employee of the employer, the employer and the year of
tax.
Note: Subsection 5E(3) explains what is an excluded fringe
benefit.
Step 4. Add the total from Step 2 to the total from Step 3.
Note: Other provisions may affect the aggregate fringe
benefits amount. For example, see section 67 (about arrangements to avoid or
reduce tax), section 135L (about reducing the aggregate fringe benefits amount
of an employer who is in business for only part of a year of tax) and section
152B (about entertainment facility leasing expenses).
The following is a simplified outline of this Division:
Basically, an employee’s individual fringe benefits amount is the
employee’s share of the taxable value of fringe benefits (with some
exclusions) provided in respect of his or her employment.
There may be some adjustments if the benefits include benefits for remote
area housing.
Overview
(1) This section explains how to work out an employee’s
individual fringe benefits amount for a year of tax in respect of
the employee’s employment by an employer.
General rule
(2) The individual fringe benefits amount is the sum of the
employee’s share of the taxable value of each fringe benefit that relates
to the year of tax and is provided in respect of the employment other than an
excluded fringe benefit.
What is an excluded fringe benefit?
(3) An excluded fringe benefit is a fringe benefit that
is:
(a) constituted by the provision of meal entertainment (as defined in
section 37AD, whether or not the employer has elected that Division 9A of Part
III apply to the employer); or
(b) a car parking fringe benefit (see subsection 136(1)); or
(c) a benefit prescribed by the regulations for the purposes of this
paragraph.
If amortised fringe benefit for remote area home provided
(4) If one or more amortised fringe benefits are provided for the year of
tax in respect of the employment, the individual fringe benefits
amount is the sum of:
(a) the sum of the employee’s share of the taxable value of each
fringe benefit provided in respect of the employment other than:
(i) an excluded fringe benefit; or
(ii) an amortised fringe benefit; and
(b) the sum of the employee’s share of each amortised amount for the
year of tax of each amortised fringe benefit relating to the employee, the
employer and any year of tax.
Note: Amortised fringe benefits are certain fringe benefits
relating to remote area residential property. See section 65CA (which also
explains how to work out the amortised amount).
If reducible fringe benefit for remote area home provided
(5) If one or more reducible fringe benefits are provided for the year of
tax in respect of the employment, the individual fringe benefits
amount is the amount worked out under whichever of subsections (2) or
(4) would otherwise apply, reduced by the employee’s share of the
reduction amount for each reducible fringe benefit.
Note: Reducible fringe benefits are certain fringe benefits
relating to remote area residential property. See section 65CC (which also
explains how to work out the reduction amount).
If section 135G applies to the employer
(6) If:
(a) section 135G applies for working out the employer’s liability to
pay tax for the year of tax; and
(b) one or more fringe benefits are provided in relation to the year of
tax in respect of the employee’s employment by the employer;
the employee’s individual fringe benefits amount is the
amount determined by the employer in writing.
Note: Section 135G allows use of the employer’s
aggregate fringe benefits amount for an earlier year of tax in working out the
employer’s liability for tax for the current year of tax.
Determining individual fringe benefits amounts
(7) In making a determination under subsection (6), the employer
must:
(a) ensure that the total of the amount or amounts determined by the
employer under that subsection for the year of tax equals the aggregate fringe
benefits amount used for working out the employer’s liability to pay tax
for the year of tax; and
(b) if that subsection applies to 2 or more of the employer’s
employees for the year of tax—act reasonably, having regard to the fringe
benefit or fringe benefits provided in relation to the year of tax in respect of
each employee’s employment.
Relationship between subsections
(8) Subsection (4) has effect despite subsection (2). Subsection (5) has
effect despite subsections (2) and (4). Subsection (6) has effect despite
subsections (2), (4) and (5).
Overview
(1) This section explains how to work out an employee’s
share of the taxable value of a fringe benefit, or of the amortised
amount or reduction amount relating to a fringe benefit, relating to the
employee, an employer and a year of tax.
Individually-valued benefit provided in respect of one
employee
(2) The employee’s share is 100% of the taxable value,
amortised amount or reduction amount (as appropriate), if:
(a) the fringe benefit was provided in respect of the employment of the
employee by the employer and was not provided in respect of the employment of
anyone else; and
(b) the taxable value of the fringe benefit was worked out for that
particular fringe benefit (not merely as part of the total taxable value of
fringe benefits in a class including that particular benefit).
Individually-valued benefit shared by 2 or more employees
(3) The employee’s share is so much of the taxable
value, amortised amount or reduction amount (as appropriate) as is reasonably
attributable to the provision of the fringe benefit in respect of the
employee’s employment by the employer, taking account of any relevant
matters, if:
(a) the fringe benefit was provided in respect of the employment of the
employee by the employer and in respect of the employment of another employee;
and
(b) the taxable value of the fringe benefit was worked out for that
particular fringe benefit (not merely as part of the total taxable value of
fringe benefits in a class including that particular benefit).
Benefits valued in aggregate
(4) If:
(a) the fringe benefit is one of a class of fringe benefits provided in
respect of the employment of one or more employees by the employer;
and
(b) the total taxable value of all the fringe benefits in the class is
worked out by a single calculation;
the
employee’s share of the taxable value of the fringe benefit
is so much of the total taxable value as is reasonably attributable to the
provision of the fringe benefit in respect of the employee’s employment by
the employer, taking account of any relevant matters.
Shares of different employees must total 100% of taxable
value
(5) If:
(a) the fringe benefit was provided in respect of the employment of 2 or
more employees; and
(b) each of those employees has an employee’s share of the taxable
value of the fringe benefit;
the sum of those shares must equal the taxable value of the fringe
benefit.
Application to amortised amounts and reduction amounts
(6) Subsection (5) applies:
(a) to an employee’s share of an amortised amount relating to an
amortised fringe benefit in the same way that subsection applies to an
employee’s share of the taxable value of a fringe benefit; and
(b) to an employee’s share of a reduction amount relating to a
reducible fringe benefit in the same way that subsection applies to an
employee’s share of the taxable value of a fringe benefit.
Single employee’s shares must equal total taxable
value
(7) If all the fringe benefits in a class described in subsection (4) are
provided in respect of the employment of the same employee (and none of them is
provided in respect of the employment of anyone else), the sum of the
employee’s shares of the taxable value of the fringe benefits must equal
the total taxable value of the fringe benefits.
Insert:
(2A) Subsection (2) does not apply to a car that:
(a) is used by an ambulance service, a firefighting service or a police
service; and
(b) is visibly marked on its exterior for that use; and
(c) is fitted with:
(i) a flashing warning light; and
(ii) a horn, bell or alarm that can give audible warning of the approach
or position of the car by making sounds with different amplitude, tones or
frequencies on a regular time cycle.
Omit “subsection 136(1)”, substitute “section
5C”.
Omit “subsection 136(1)”, substitute “section
5C”.
Insert:
The following is a simplified outline of this Part:
An employee’s reportable fringe benefits total for a year of income
is the sum of each of the employee’s reportable fringe benefits amounts
for the year of income (see section 135N). (The total is taken into account
under other Acts; for example in working out some income tax rebates, Medicare
levy surcharge and superannuation surcharge and whether the employee must make a
repayment of a debt under the Higher Education Funding Act
1988.)
An employee’s reportable fringe benefits amount from an employer is
generally the grossed-up value of the employee’s individual fringe
benefits amount from that employer (see section 135P).
Special rules apply for working out the employee’s reportable fringe
benefits amount in respect of the employee’s employment if the benefits
provided in respect of the employment include exempt benefits under section 57A
or 58 (about employment with public benevolent institutions and bodies providing
care for sick, elderly or disadvantaged persons) (see section 135Q).
An employee’s reportable fringe benefits total for a
year of income is the sum of each of the employee’s reportable fringe
benefits amounts for the year of income in respect of the employee’s
employment by an employer.
Example: Sylvia employs Angela, who has a reportable fringe
benefits amount of $3,000 for the 1999-2000 year of income from her employment
by Sylvia.
Angela is also an employee of Geoff, and has a reportable
fringe benefits amount of $4,000 for that year of income from her employment by
Geoff.
Angela’s reportable fringe benefits total for the
1999-2000 year of income is $7,000.
Does an employee have a reportable fringe benefits amount?
(1) An employee has a reportable fringe benefits amount for
a year of income in respect of the employee’s employment by an employer if
the employee’s individual fringe benefits amount for the year of tax
ending on 31 March in the year of income in respect of the employee’s
employment by the employer is more than $1,000.
Example 1: On 31 May 1999, Sylvia waives a debt of $1,545
that her employee Angela owes her, thus providing Angela with a debt waiver
fringe benefit with a taxable value of $1,545 for the year of tax ending on 31
March 2000. Angela has a reportable fringe benefits amount for the year of
income ending on 30 June 2000 in respect of her employment by
Sylvia.
Example 2: On 1 March 2000, Angela’s employer Neil
waives a debt of $900 Angela owes him, providing Angela with a debt waiver
fringe benefit with a taxable value of $900 for the year of tax ending on 31
March 2000. However, he does not provide any other fringe benefits for that year
of tax in respect of her employment, so Angela does not have a reportable fringe
benefits amount for the year of income ending on 30 June 2000 in respect of her
employment by Neil.
Size of the reportable fringe benefits amount
(2) The reportable fringe benefits amount is the amount
worked out using the formula:
where:
individual fringe benefits amount is the employee’s
individual fringe benefits amount for the year of tax in respect of the
employee’s employment by the employer.
Overview
(1) This section explains how to work out whether an employee has a
reportable fringe benefits amount for a year of income in respect of the
employee’s employment by an employer described in section 57A or 58, and
the size of that amount, if:
(a) a benefit is provided in respect of the employee’s employment by
the employer; and
(b) the benefit is an exempt benefit because of one of those sections;
and
(c) apart from those sections, the benefit would be a fringe benefit
relating to the employee, the employer and the year of tax ending on 31 March in
the employee’s year of income.
Note: Section 57A deals with public benevolent institutions,
and government bodies employing persons to work in hospitals that are public
benevolent institutions. Section 58 deals with persons employed by government
bodies, religious institutions and non-profit companies to care for the elderly
or disadvantaged.
Does an employee have a reportable fringe benefits amount?
(2) The employee has a reportable fringe benefits amount
(worked out under subsection (4)) for the year of income in respect of the
employee’s employment by the employer if the sum of the following is more
than $1,000:
(a) the employee’s individual fringe benefits amount (if any) for
the year of tax ending on 31 March in the year of income in respect of the
employee’s employment by the employer;
(b) the employee’s individual quasi-fringe benefits amount for the
year of tax ending on 31 March in the year of income in respect of the
employee’s employment by the employer.
Note: An employee of an employer described in section 57A
will not have an individual fringe benefits amount from that employer, because
all benefits provided in respect of employment by that employer are exempt
benefits.
What is the employee’s individual quasi-fringe benefits
amount?
(3) The employee’s individual quasi-fringe benefits
amount is the amount that would be the employee’s individual
fringe benefits amount for the year of tax in respect of the employee’s
employment by the employer if:
(a) each benefit described in subsection (1) in relation to the employee,
employer and year of tax were a fringe benefit; and
(b) there were no other fringe benefits relating to the employee, the
employer and the year of tax.
Note: Section 5E explains how to work out the
employee’s individual fringe benefits amount for the year of
tax.
Size of the reportable fringe benefits amount
(4) The reportable fringe benefits amount is the amount
worked out using the formula:
where:
individual fringe benefits amount is the employee’s
individual fringe benefits amount (if any) for the year of tax in respect of the
employee’s employment by the employer.
individual quasi-fringe benefits amount is the
employee’s individual quasi-fringe benefits amount for the year of tax in
respect of the employee’s employment by the employer.
rate of tax is the rate of tax for the year of tax.
Relationship with section 135P
(5) This section has effect despite section 135P.
6
Subsection 136(1) (definition of
aggregate fringe benefits
amount)
Repeal the definition, substitute:
aggregate fringe benefits amount has the meaning given by
section 5C.
Insert:
employee’s share of the taxable value or value of a
fringe benefit, or of the amortised amount or reduction amount relating to a
fringe benefit, has the meaning given by section 5F.
Insert:
excluded fringe benefit, in relation to an employee, employer
and year of tax, has the meaning given by subsection 5E(3).
9
Subsection 136(1) (definition of fringe
benefits taxable amount)
Omit “section 136AA”, substitute “section
5B”.
Insert:
individual fringe benefits amount for a year of tax in
respect of the employment of an employee by an employer has the meaning given by
section 5E.
Insert:
individual quasi-fringe benefits amount for a year of tax in
respect of the employment of an employee by an employer has the meaning given by
subsection 135Q(3).
Insert:
reportable fringe benefits amount for a year of income in
respect of the employment of an employee by an employer has the meaning given by
section 135P or 135Q (as appropriate).
Insert:
reportable fringe benefits total of an employee for a year of
income has the meaning given by section 135N.
Repeal the section.
Omit “subsection 136(1)”, substitute “section
5C”.
The amendments made by this Schedule apply in relation to the year of tax
starting on 1 April 1999 and later years of tax.
Fringe
Benefits Tax (Application to the Commonwealth) Act 1986
17 Title
After “tax”, insert, “, and for the application
of the reportable fringe benefits system,”.
18 After section 2
Insert:
The objects of this Act are to provide for:
(a) the notional application of fringe benefits tax in relation to
benefits provided in respect of the employment of Commonwealth employees;
and
(b) the calculation of the reportable fringe benefits totals of those
employees; and
(c) the calculation of the reportable fringe benefits amounts of those
employees in respect of that employment.
Part
1—Reporting reportable
fringe benefits amounts and totals
Division
1—Reporting on group certificates
Insert:
reportable fringe benefits amount for a year of income in
respect of an employee’s employment by an employer has the same meaning as
in the Fringe Benefits Tax Assessment Act 1986 (as it applies of its own
force or because of the Fringe Benefits Tax (Application to the Commonwealth)
Act 1986).
Insert:
reportable fringe benefits total for a year of income for a
person who is an employee (within the meaning of the Fringe Benefits Tax
Assessment Act 1986) means the employee’s reportable fringe benefits
total (as defined in that Act) for the year of income.
3
At the end of subsection 221F(5B)
Add:
; and (d) the reportable fringe benefits amount (if any) for the year of
income ending on 30 June in the same year in respect of the employment of the
employee by the employer, reduced by so much of the amount (if any) as was set
out in a previous group certificate.
4
At the end of subsection 221F(5C)
Add:
Note: Under subsection (5GA), the employer must also
complete another group certificate form if the employee:
• ceased to be employed on or after 1 April in the
period of the 12 months; and
• has a reportable fringe benefits amount from the
employer for the year of income starting immediately after the end of the period
of 12 months.
5
At the end of subsection 221F(5D)
Add:
; and (d) the reportable fringe benefits amount (if any) for the year of
income ending on the 30 June mentioned in subsection (5C) in respect of the
employment of the employee by the employer, reduced by so much of the amount (if
any) as was set out in a previous group certificate.
6
Paragraphs 221F(5E)(a) and (b)
Omit “and”.
7
At the end of subsection 221F(5E)
Add:
; (d) the employee does not have a reportable fringe benefits amount in
respect of the employee’s employment by the employer for the year of
income ending on the 30 June on which the period of 12 months ended.
Insert:
(5GA) Subject to subsection (5H), an employer must complete a group
certificate form in respect of an employee of the employer, if the
employee:
(a) ceased to be employed by the employer at any time after the start of 1
April and before the end of 30 June in a single year of income; and
(b) has a reportable fringe benefits amount for the next year of income in
respect of the employee’s employment by the employer.
(5GB) In completing the form, the employer must set out (in addition to
any other matter required by the form):
(a) if the employee has, for the purposes of Part VA, quoted his or her
tax file number in an employment declaration given to the employer—the tax
file number; and
(b) the reportable fringe benefits amount mentioned in paragraph (5GA)(b),
reduced by so much of the amount (if any) as was set out in a previous group
certificate.
(5GC) The employer must give the employee 2 copies of the completed form
no later than:
(a) the day specified in subsection (5CA), if that subsection applies;
or
(b) 14 July in the calendar year after the calendar year in which the
employee ceased to be employed by the employer.
(5GD) To avoid doubt, the requirement in subsection (5GA) for the employer
to complete the form in respect of the employee is in addition to any
requirement under subsection (5C) for the employer to complete a group
certificate form in respect of the employee.
Insert:
(aa) each group certificate completed by the employer and setting out all
or part of a reportable fringe benefits amount for the year of income ending on
30 June in that year in respect of the employment of an employee by the
employer; and
After “(5D)”, insert “, (5GA) to (5GC)”.
After “(5D)”, insert “, (5GA) to (5GC)”.
Add:
(16) This section applies in relation to a person who is an employee
within the meaning of the Fringe Benefits Tax Assessment Act 1986 as if
the person were an employee for the purposes of this Division.
Note: Current,
former and future employees are all employees within the meaning of the
Fringe Benefits Tax Assessment Act 1986. A person
is an employee under that Act if benefits are provided in respect of the
person’s employment (even if the person does not actually receive salary
or wages): see section 137 of that Act.
Add:
(17) This section applies in relation to an entity that is an employer for
the purposes of the Fringe Benefits Tax Assessment Act 1986 (as it
applies of its own force or because of the Fringe Benefits Tax (Application
to the Commonwealth) Act 1986) as if the entity were an employer for the
purposes of this Division.
Note: Current, former and future employers are all employers
within the meaning of the Fringe Benefits Tax Assessment Act 1986. A
person is an employer under that Act if benefits are provided in respect of the
person’s employment of someone else (even if the person pays no salary or
wages): see section 137 of that Act.
Repeal the subsection, substitute:
(1) An employee who is given a group certificate that sets out:
(a) salary or wages received by the employee in a year of income;
or
(b) all or part of the employee’s reportable fringe benefits amount
for a year of income in respect of the employee’s employment by an entity
that is an employer for the purposes of the Fringe Benefits Tax Assessment
Act 1986 (as that Act applies of its own force or because of the Fringe
Benefits Tax (Application to the Commonwealth) Act 1986);
must keep the group certificate for 5 years after the employee’s
assessment for the year of income.
Note: The heading to section 221H is altered by omitting
“Application” and substituting “Record-keeping and
application”.
Insert:
(1AA) Subsections (1) and (1A) apply to a person who is an employee within
the meaning of the Fringe Benefits Tax Assessment Act 1986 as if the
person were an employee for the purposes of this Division.
16
Application of amendments of sections 221F and 221H
The amendments of sections 221F and 221H of the Income Tax Assessment
Act 1936 made by this Division apply in relation to group certificate forms
and group certificates setting out (or required to set out) information relating
to the 1999-2000 year of income or a later year of income.
Division
2—Returns of reportable fringe benefits totals
After “fuller return,”, insert “of the person’s
reportable fringe benefits total for a year of income or”.
After “to furnish a return,”, insert “or the person does
not have a reportable fringe benefits total for the year of
income,”.
The amendments made by this Division apply in relation to reportable fringe
benefits totals for the 1999-2000 year of income and later years of
income.
Part
2—Effect of fringe benefits
on deductions for superannuation contributions
20
Sub-subparagraph 82AAS(3)(b)(i)(A)
After “year of income”, insert “, or the person’s
reportable fringe benefits total for the year of income,”.
21
Sub-subparagraph 82AAS(3)(b)(i)(A)
Omit “that were derived from”, substitute “attributable
to”.
22
Sub-subparagraph 82AAS(3)(b)(i)(B)
Omit “person’s assessable income of the year of income”,
substitute “total of the person’s assessable income of the year of
income and reportable fringe benefits total (if any) for the year of
income”.
23
Subparagraph 82AAS(3)(b)(ii)
After “year of income”, insert “, or the person’s
reportable fringe benefits total for the year of income,”.
24
Subparagraph 82AAS(3)(b)(ii)
Omit “that was derived from”, substitute “attributable
to”.
The amendments made by this Part apply to assessments for the 1999-2000
year of income and later years of income.
Part
3—Effect of fringe benefits
on rebate for personal superannuation contributions
Repeal the paragraph, substitute:
(c) the total of the following is less than $31,000:
(i) the taxpayer’s assessable income for the taxpayer’s year
of income;
(ii) the taxpayer’s reportable fringe benefits total (if any) for
the year of income.
Omit “taxpayer’s assessable income of the taxpayer’s year
of income”, substitute “total mentioned in paragraph
(c)”.
The amendments made by this Part apply to assessments for the 1999-2000
year of income and later years of income.
Part
4—Effect of fringe benefits
on rebate for contributions to spouse’s
superannuation
Repeal the paragraph, substitute:
(c) the total of the following is less than $13,800:
(i) the spouse’s assessable income;
(ii) the spouse’s reportable fringe benefits total (if any) for the
year of income.
Omit “spouse’s assessable income of that year”,
substitute “total mentioned in paragraph (1)(c)”.
The amendments made by this Part apply to assessments for the 1999-2000
year of income and later years of income.
Part
5—Medicare levy surcharge on
reportable fringe benefits total
Repeal the heading, substitute:
Insert:
(1A) In this Part, unless the contrary intention appears:
surcharge means Medicare levy surcharge imposed by the A
New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act
1998.
34
At the end of subsection 251R(7)
Add “and surcharge”
After “levy”, insert “or surcharge”.
Repeal the section, substitute:
The notice of assessment to be served under section 174 on a taxpayer who
must pay levy or surcharge for a year of income must specify the total of levy
and surcharge (if any) payable by the taxpayer for the year of income.
Add:
The Commissioner has the general administration of the A New Tax
System (Medicare Levy Surcharge—Fringe Benefits) Act 1998.
The amendments made by this Part apply in relation to levy and surcharge
payable in respect of the 1999-2000 year of income and later years of
income.
The amendment of subsection 251W(1) of the Income Tax Assessment Act
1936 made by this Schedule does not affect the validity of any regulations
made for the purposes of that subsection that were in force immediately before
the amendment.
Higher
Education Funding Act 1988
1
Subsection 106H(1) (definition of HEC
repayment income of a person)
Repeal the definition.
Insert:
HEC repayment income of a person means:
(a) in relation to the year of income ending on 30 June 1996 or any
preceding year of income—an amount equal to the taxable income of the
person in respect of that year; and
(b) in relation to the year of income ending on 30 June 1997—the sum
of:
(i) the taxable income of the person in respect of that year;
and
(ii) if, in respect of that year of income, a deduction has been allowed
from the assessable income of the person under section 51 of the Income Tax
Assessment Act 1936 for interest on money borrowed by the person to finance
rental property investments and that deduction or, if another deduction has been
allowed (otherwise than for interest on money borrowed) from the assessable
income of the person under that Act in respect of the rental property
investments, the total of those deductions exceeds the rental income of the
person—the amount of the excess; and
(c) in relation to the 1997-98 or 1998-99 year of income—the sum
of:
(i) the person’s taxable income for that year of income;
and
(ii) if the person has deducted under section 8-1 of the Income Tax
Assessment Act 1997 for that year of income an amount for interest on money
the person borrowed to finance rental property investments, and the total of
that amount and any other amounts the person has deducted under that Act or the
Income Tax Assessment Act 1936 (otherwise than for interest on money
borrowed) in respect of the rental property exceeds the rental income of the
person—the amount of the excess; and
(d) in relation to the 1999-2000 year of income or any later year of
income—the sum of:
(i) the person’s taxable income for that year of income;
and
(ii) if the person has deducted under section 8-1 of the Income Tax
Assessment Act 1997 for that year of income an amount for interest on money
the person borrowed to finance rental property investments, and the total of
that amount and any other amounts the person has deducted under that Act or the
Income Tax Assessment Act 1936 (otherwise than for interest on money
borrowed) in respect of the rental property exceeds the rental income of the
person—the amount of the excess; and
(iii) if the person is an employee (within the meaning of the Fringe
Benefits Tax Assessment Act 1986) who has a reportable fringe benefits total
(as defined in that Act) for the year of income—the reportable fringe
benefits total for the year of income.
Insert:
reportable fringe benefits total of a person of a year of
income has the same meaning as in the Assessment Act.
Omit “or taxable income” (twice occurring), substitute “,
taxable income or reportable fringe benefits total”.
Omit “taxable income of a person”, substitute “total of a
person’s taxable income and reportable fringe benefits total (if
any)”.
Repeal the paragraphs, substitute:
(b) the sum of the following exceeds the family surcharge
threshold:
(i) the person’s taxable income;
(ii) the person’s reportable fringe benefits total (if
any);
(iii) the person’s spouse’s taxable income;
(iv) the person’s spouse’s reportable fringe benefits total
(if any); and
(c) the total of the person’s taxable income and reportable fringe
benefits total (if any) is more than $13,389.
Repeal the paragraphs, substitute:
(a) both of the following conditions are met if the person is married for
the whole of the year of income:
(i) the sum of the person’s taxable income, the person’s
reportable fringe benefits total (if any), the person’s spouse’s
taxable income and the person’s spouse’s reportable fringe benefits
total (if any) is more than the family surcharge threshold;
(ii) the total of the person’s taxable income and reportable fringe
benefits total (if any) is more than $13,389; or
(b) the total of the person’s taxable income and reportable fringe
benefits total (if any) is more than $13,389, if the person is married for only
some of the year of income.
Repeal the paragraph, substitute:
(b) the sum of the following exceeds the family surcharge
threshold:
(i) the beneficiary’s trust income;
(ii) the beneficiary’s spouse’s taxable income;
(iii) the beneficiary’s spouse’s reportable fringe benefits
total (if any); and
Repeal the subparagraph, substitute:
(i) the sum of the beneficiary’s trust income, the
beneficiary’s spouse’s taxable income and the beneficiary’s
spouse’s reportable fringe benefits total (if any) is more than the family
surcharge threshold; and
The amendments made by this Schedule apply for the purposes of working out
the amount of Medicare levy payable on taxable income for the 1999-2000 year of
income or a later year of income.
Superannuation
Contributions Tax (Assessment and Collection) Act 1997
1
Section 43 (at the end of the definition of
adjusted taxable
income)
Add:
; and (c) if the member is an employee (within the meaning of the
Fringe Benefits Tax Assessment Act 1986) who has a reportable fringe
benefits total (as defined in that Act) for the year of income comprising the
financial year—the reportable fringe benefits total for the year of
income.
Superannuation
Contributions Tax (Members of Constitutionally Protected Funds) Assessment and
Collection Act 1997
2
Section 38 (at the end of the definition of
adjusted taxable
income)
Add:
; and (c) if the member is an employee (within the meaning of the
Fringe Benefits Tax Assessment Act 1986) who has a reportable fringe
benefits total (as defined in that Act) for the year of income comprising the
financial year—the reportable fringe benefits total for the year of
income.
The amendments made by this Schedule apply to calculations of adjusted
taxable income for financial years starting on or after 1 July 1999.