CLEAN ENERGY (INCOME TAX RATES AMENDMENTS) BILL 2011

i Clean Energy (Income Tax Rates Amendments) Bill 2011 No. , 2011

Contents

1 Short

title

...........................................................................................

2 Commencement

.................................................................................

3 Schedule(s)

........................................................................................

Schedule 1--Personal tax rates

Part 1--Amendments applying from the 2012-13 year of

income

Income Tax Rates Act 1986

Part 2--Amendments applying from the 2015-16 year of

income

Income Tax Rates Act 1986

Clean Energy (Income Tax Rates Amendments) Bill 2011 No. , 2011 1

A Bill for an Act to amend the Income Tax Rates

Act 1986, and for related purposes

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Clean Energy (Income Tax Rates

Amendments) Act 2011.

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.

2 Clean Energy (Income Tax Rates Amendments) Bill 2011 No. , 2011

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.

2. Schedule 1,

Part 1

The latest of:

(a) the start of 1 July 2012; and

(b) the commencement of section 3 of the

Clean Energy Act 2011; and

(Tax Laws Amendments) Act 2011

receives the Royal Assent.

However, the provision(s) do not commence

at all unless both of the events mentioned in

paragraphs (b) and (c) occur.

3. Schedule 1,

Part 2

The latest of:

(a) the start of 1 July 2015; and

(b) the commencement of section 3 of the

Clean Energy Act 2011; and

(Tax Laws Amendments) Act 2011

receives the Royal Assent.

However, the provision(s) do not commence

at all unless both of the events mentioned in

paragraphs (b) and (c) occur.

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

Schedule 1 Personal tax rates

Part 1 Amendments applying from the 2012-13 year of income

4 Clean Energy (Income Tax Rates Amendments) Bill 2011 No. , 2011

Schedule 1--Personal tax rates

Part 1--Amendments applying from the 2012-13 year

of income

Income Tax Rates Act 1986

1 Subsection 3(1)

Insert:

tax-free threshold means $18,200.

2 Subsections 20(1) and (2)

Repeal the subsections, substitute:

Part-year residency periods

(1) This Act applies in relation to a person and a year of income as if

the reference in the table in Part I of Schedule 7 to the tax-free

threshold were a reference to the amount calculated in accordance

with the following formula, if there are one or more part-year

residency periods in relation to the person in relation to the year of

income:

Number of months in the year

of income during which there

is a part-year residency period

in relation to the person

and the year of income

The tax-free

$4,736

threshold

�

Trustees

(1A) Subsection (1) does not apply in calculating the tax payable by the

trustee of a trust estate under section 98 of the Assessment Act in

respect of a share of a beneficiary of the net income of the trust

estate of a year of income.

(2) However, this Act applies in calculating the tax payable by the

trustee in respect of that share as if the reference in the table in

Part I of Schedule 7 to the tax-free threshold were a reference to

the amount calculated in accordance with the following formula, if

Personal tax rates Schedule 1

Amendments applying from the 2012-13 year of income Part 1

Clean Energy (Income Tax Rates Amendments) Bill 2011 No. , 2011 5

there are one or more part-year residency periods in relation to the

beneficiary in relation to the year of income:

Number of months in the year

of income when a part-year

residency period, or

part-year residency periods,

in relation to the beneficiary

in relation to the

The tax-free

$4,736

threshold

�

year

of income subsisted

3 Clause 1 of Part I of Schedule 7 (table items 1 and 2)

Repeal the items, substitute:

exceeds the tax-free threshold but does not

exceed $37,000

19%

exceeds $37,000 but does not exceed $80,000

32.5%

4 Subparagraph 2(b)(ii) of Division 2 of Part I of Schedule 8

Omit "$6,000", substitute "the tax-free threshold".

5 Paragraph 2(b) of Part I of Schedule 10

Omit "$6,000", substitute "the tax-free threshold".

6 Application provision

The amendments made by this Part apply to the 2012-13 year of income

and later years of income.

Schedule 1

Personal tax rates

Part 2

Amendments applying from the 2015-16 year of income

6 Clean Energy (Income Tax Rates Amendments) Bill 2011 No. , 2011

Part 2--Amendments applying from the 2015-16 year

of income

Income Tax Rates Act 1986

7 Subsection 3(1) (definition of tax-free threshold)

Omit "$18,200", substitute "$19,400".

8 Clause 1 of Part I of Schedule 7 (table item 2)

Repeal the item, substitute:

exceeds $37,000 but does not exceed $80,000

33%

9 Application provision

The amendments made by this Part apply to the 2015-16 year of income

and later years of income.

Commonwealth of Australia Bills

CLEAN ENERGY (INCOME TAX RATES AMENDMENTS) BILL 2011