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This is a Bill, not an Act. For current law, see the Acts databases.
1996
The Parliament of
the
Commonwealth of
Australia
HOUSE OF
REPRESENTATIVES
Presented and read a first
time
Income Tax
Rates Amendment (Family Tax Initiative) Bill
1996
No. ,
1996
(Treasury)
A Bill
for an Act to amend the Income Tax Rates Act 1986 for the purposes of a
family tax initiative, and for related purposes
9611420—1,430/9.9.1996—(114/96) Cat. No. 96
5077 6 ISBN 0644 477083
Contents
A Bill for an Act to amend the Income Tax Rates Act
1986 for the purposes of a family tax initiative, and for related
purposes
The Parliament of Australia enacts:
This Act may be cited as the Income Tax Rates Amendment (Family Tax
Initiative) Act 1996.
This Act commences on 1 January 1997.
(1) This Act (together with the Family (Tax Initiative) Act 1996)
provides for a family tax initiative, consisting of family tax assistance and
family tax payment.
(2) The amendments made by Schedule 1 (together with the amendments made
by items 3 to 6 and 10 to 13 of Schedule 1, and Schedule 3, to the Family
(Tax Initiative) Act 1996) provide for the family tax assistance.
(3) The amendments made by items 1, 2, 7, 8 and 9 of Schedule 1, and
Schedule 2, to the Family (Tax Initiative) Act 1996 provide for the
family tax payment.
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repealed as set out in the applicable items in the Schedule concerned, and any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.
1 After section 16
Insert:
If this Division applies in respect of a year of income to a taxpayer to
whom section 20C or 20D applies, or would apart from section 20E apply,
this Division is to be applied in relation to the taxpayer in respect of that
year of income before Division 5 is applied.
2 At the end of Part II
Add:
This Division provides for family tax assistance by way of an increased
tax-free threshold for certain taxpayers with dependent children.
In this Division:
dependant has the meaning given by section 20K.
family income ceiling has the meaning given by section
20Q.
lowest marginal rate of tax means the lowest percentage set
out in column 2 of the table in clause 1 of Part 1 of Schedule 7.
relevant part of the 1996-97 year of income means the part of
that year of income occurring after the commencement of this Division.
relevant period means:
(a) the relevant part of the 1996-97 year of income; or
(b) the year of income 1997-98; or
(c) a later year of income.
spouse, in relation to a taxpayer, does not include a person
who lives separately and apart from the taxpayer on a permanent basis.
taxpayer’s income ceiling has the meaning given by
section 20R.
(1) Subject to this Division, if:
(a) a taxpayer who was a resident during the relevant part of the 1996-97
year of income had, during that part of that year of income, at least one
dependant; and
(b) the taxpayers’ taxable income of that year of income or, if the
taxpayer had a spouse on the last day of that year of income, the sum of the
taxable incomes of that year of income of the taxpayer and that spouse was less
than the family income ceiling for the taxpayer for that year of
income;
the amount of $5,400 set out in column 1 of the table in clause 1 of Part 1
of Schedule 7 is taken, for the purposes of the application of that Schedule to
the taxpayer in respect of that year of income, to be increased by $500 for each
person who, during the relevant part of that year of income, was a dependant of
the taxpayer.
(2) Subject to this Division, if:
(a) a taxpayer who was a resident during the 1997-98 year of income or a
later year of income had, during that year of income, at least one dependant;
and
(b) the taxpayers’ taxable income of that year of income or, if the
taxpayer had a spouse on the last day of that year of income, the sum of the
taxable incomes of that year of income of the taxpayer and that spouse was less
than the family income ceiling for the taxpayer for that year of
income;
the amount of $5,400 set out in column 1 of the table in clause 1 of Part 1
of Schedule 7 is, for the purposes of the application of that Schedule to the
taxpayer in respect of that year of income, taken to be increased by $1,000 for
each person who, during that year of income, was a dependant of the
taxpayer.
(1) Subject to this Division, if:
(a) a taxpayer who was a resident during the relevant part of the 1996-97
year of income had, during that part of that year of income, at least one
dependant under the age of 5 years; and
(b) the taxpayers’ taxable income of that year of income was less
than the taxpayers’ income ceiling for that year of income; and
(c) in respect of a taxpayer who had a spouse on the last day of that year
of income—the spouse’s taxable income of that year of income was
less than the spouse income ceiling for that year of income;
the amount of $5,400 set out in column 1 of the table in clause 1 of Part 1
of Schedule 7 is, for the purposes of the application of that Schedule to the
taxpayer in respect of that year of income, in addition to any amount by which
that amount of $5,400 is increased under section 20C, taken to be increased by
$1,250.
(2) Subject to this Division, if:
(a) a taxpayer who was a resident during the 1997-98 year of income or a
later year of income had, during that year of income, at least one dependant
under the age of 5 years; and
(b) the taxpayers’ taxable income of that year of income was less
than the taxpayers’ income ceiling for that year of income; and
(c) in respect of a taxpayer who had a spouse on the last day of that year
of income—that spouse’s taxable income of that year of income was
less than the spouse income ceiling for that year of income;
the amount of $5,400 set out in column 1 of the table in clause 1 of Part 1
of Schedule 7 is, for the purposes of the application of that Schedule to the
taxpayer in respect of that year of income, in addition to any amount by which
that amount of $5,400 is increased under section 20C, taken to be increased by
$2,500.
(3) In calculating the taxable income of a year of income of a
taxpayers’ spouse for the purposes of this section, any amount of
Commonwealth pension, benefit or allowance included in that spouse’s
assessable income of that year of income is taken not to have been so
included.
(4) For the purposes of this section, the spouse income
ceiling for a year of income is the amount worked out using the
formula:
where:
income ceiling of the breadwinner’s partner means the
amount per fortnight worked out under the Method statement in Table E of point
1070-E5 of the Rate Calculator at the end of section 1070 of the Social
Security Act 1991.
The reference in that table to the current maximum basic component of
parenting allowance is a reference to the amount of that component on 21
March in the year of income.
(5) In this section:
Commonwealth labour market program means a program
administered by the Commonwealth under which:
(a) unemployed people are trained in skills to improve their prospects of
obtaining employment; or
(b) unemployed people are helped to obtain employment; or
(c) employed people are trained in skills, or given other assistance, to
help them in continuing to be employed by their current employer or in obtaining
other employment.
Commonwealth pension, benefit or allowance means any of the
following payments:
(a) a payment that is a rebatable benefit within the meaning of section
160AAA of the Assessment Act;
(b) a payment that is a rebatable pension within the meaning of section
160AAA of the Assessment Act;
(c) a non-subsidised payment by the Commonwealth of an allowance or
reimbursement to, or to a person on behalf of, a participant in a Commonwealth
labour market program;
(d) a non-subsidised payment by the Commonwealth of an allowance or
reimbursement to, or to a person on behalf of, a student under a scheme of
assistance to students, other than a payment:
(i) by way of a scholarship or bursary; or
(ii) made on the condition that the student, or the person receiving the
payment on behalf of the student, will (if required) render services to the
Commonwealth.
non-subsidised payment means a payment made to a person who
is not an employee, or receives the payment on behalf of another person who is
not an employee, of someone who is entitled to a Commonwealth subsidy in respect
of the employment.
(1) If the adjusted tax-free threshold of a taxpayer to whom, apart from
this subsection, section 20C or 20D would apply exceeds $20,700, those sections
do not apply to the taxpayer but the following provisions of this section have
effect.
(2) The table in clause 1 of Part 1 of Schedule 7 is taken, for the
purposes of the application of that clause to the taxpayer, to be replaced by
the following table:
|
Column 1 Parts of ordinary taxable income of taxpayer |
Column 2 % rate |
|---|---|
|
The part of the ordinary taxable income that: exceeds $20,700 but does not exceed the adjusted tax-free
threshold exceeds the adjusted tax-free threshold but does not exceed
$38,000 exceeds $38,000 but does not exceed $50,000 exceeds $50,000 |
14%
47% |
(3) In this section:
adjusted tax-free threshold means the amount worked out using
the formula:
tax-free threshold increase means the sum of the amounts by
which, subject to this Division, the amount of $5,400 set out in column 1 of the
table in clause 1 of Part 1 of Schedule 7 would be taken to be increased in
relation to the taxpayer in respect of the year of income under sections 20C and
20D if those sections applied to the taxpayer.
(1) If the taxable income of a year of income of a taxpayer to whom
section 20C or 20D applies, or would apart from section 20E apply, consists of
or includes a special income component, sections 20C, 20D and 20E do not apply,
but the rate of tax for every $1 of the taxable income, as worked out under
clause 2 or 3 of Part 1 of Schedule 7, clause 2 of Part 1 of Schedule 9 or
clause 3 of Part 1 of Schedule 11, as the case may be, and apart from sections
20C, 20D and 20E, is reduced by the rate worked out using the
formula:
(2) If:
(a) a trustee of a trust estate is liable to be assessed and to pay tax
under section 98 of the Assessment Act in respect of a share of a resident
beneficiary of the net income of the trust estate of a year of income;
and
(b) Division 6AA of Part III of that Act applies to a part of that share;
and
(c) that share consists of or includes a capital gains component;
and
(d) section 20C or 20D applies, or would apart from section 20E
apply, to the beneficiary;
sections 20C, 20D and 20E do not apply, but the rate of tax for every $1 of
the share, as worked out under clause 3 of Part 1 of Schedule 12 and apart from
sections 20C, 20D and 20E, is reduced by the rate worked out using the
formula:
(3) In this section:
tax-free threshold increase means the number of whole dollars
in the sum of the amounts by which, subject to this Division, the amount of
$5,400 set out in column 1 of the table in clause 1 of Part 1 of Schedule 7 is
increased in relation to the taxpayer in respect of the year of income under
sections 20C and 20D, or would be so increased if those sections applied to the
taxpayer.
taxable income means the number of whole dollars in the
taxpayers’ taxable income of the year of income.
share of net income means the number of whole dollars in the
beneficiary’s share of the net income of the trust estate of the year of
income.
(1) If:
(a) a taxpayer to whom section 20C or 20D applies, or would apart from
section 20E apply, in respect of a year of income is liable to pay complementary
tax under subsection 156(4A) of the Assessment Act in respect of the whole
or a part of the taxable income of the year of income; and
(b) the adjusted tax-free threshold exceeds the taxable income;
and
(c) the taxable income exceeds $5,400;
the rate of complementary tax, as determined under subsection 12(3),
is reduced by the rate worked out using the formula:
(2) If:
(a) a taxpayer to whom section 20C or 20D applies, or would apart from
section 20E apply, in respect of a year of income is liable to pay complementary
tax under subsection 156(4A) of the Assessment Act in respect of the whole
or a part of the taxable income of the year of income; and
(b) the adjusted tax-free threshold exceeds the taxable income;
and
(c) the taxable income does not exceed $5,400;
the rate of complementary tax, as determined under subsection 12(3),
is reduced by the rate worked out using the formula:
(3) If:
(a) a trustee of a trust estate is liable to be assessed and to pay tax
under subsection 98(1) or (2) of the Assessment Act in respect of a
beneficiary’s share of the net income of a trust estate of the year of
income; and
(b) the trustee is liable to pay complementary tax under subsection
156(5A) of that Act in respect of the share; and
(c) section 20C or 20D applies, or would apart from section 20E
apply, to the beneficiary; and
(d) the adjusted tax-free threshold exceeds the share of net income;
and
(e) the share of net income exceeds $5,400;
the rate of complementary tax, as determined under subsection 12(4), is
reduced by the rate worked out using the formula:
(4) If:
(a) a trustee of a trust estate is liable to be assessed and to pay tax
under subsection 98(1) or (2) of the Assessment Act in respect of a
beneficiary’s share of the net income of a trust estate of the year of
income; and
(b) the trustee is liable to pay complementary tax under subsection
156(5A) of that Act in respect of the share; and
(c) section 20C or 20D applies, or would apart from section 20E
apply, to the beneficiary; and
(d) the adjusted tax-free threshold exceeds the share of net income;
and
(e) the share of net income does not exceed $5,400;
the rate of complementary tax, as determined under subsection 12(4), is
reduced by the rate worked out using the formula:
(5) In this section:
adjusted tax-free threshold means the number of whole dollars
in the amount worked out using the formula:
tax-free threshold increase means the number of whole dollars
in the sum of the amounts by which, subject to this Division, the amount of
$5,400 set out in column 1 of the table in clause 1 of Part 1 of Schedule 7 is
increased in relation to the taxpayer in respect of the year of income under
sections 20C and 20D, or would be so increased if those sections applied to the
taxpayer.
taxable income means the number of whole dollars in the
taxpayers’ taxable income of the year of income.
deemed taxable income from primary production means the
number of whole dollars in the amount that is the deemed taxable income from
primary production of the taxpayer of the year of income for the purposes of
section 156 of the Assessment Act.
share of net income means the number of whole dollars in the
beneficiary’s share of the net income of the trust estate of the year of
income.
deemed net income from primary production means the number of
whole dollars in the amount that is the deemed net income from primary
production of the trust estate of the year of income for the purposes of section
156 of the Assessment Act.
If a taxpayer to whom section 20C or 20D applies, or would apart from
section 20E apply, has in a year of income a notional income as determined under
section 59AB or 86 of the Assessment Act, sections 20C, 20D and 20E do not
apply, but the rate of tax for every $1 of the ordinary taxable income, as
worked out under clause 1 of Part 1 of Schedule 9 and apart from sections 20C,
20D and 20E, is reduced by the rate worked out using the formula:
where:
tax-free threshold increase means the number of whole dollars
in the sum of the amounts by which, subject to this Division, the amount of
$5,400 set out in column 1 of the table in clause 1 of Part 1 of Schedule 7 is
increased in relation to the taxpayer in respect of the year of income under
sections 20C and 20D, or would be so increased if those sections applied to the
taxpayer.
ordinary taxable income means the number of whole dollars in
the taxpayers’ ordinary taxable income of the year of income.
If:
(a) a trustee is liable to be assessed and to pay tax under
section 98 of the Assessment Act in respect of a share of a resident
beneficiary of the net income of a trust estate; and
(b) section 20C or 20D applies, or would apart from section 20E
apply, to the beneficiary;
the references in clause 1 of Part 1 of Schedule 10 and clauses 1 and 3 of
Part 1 of Schedule 12 to one individual are taken to be references to the
beneficiary.
(1) Subject to this section, a person is a dependant of a
taxpayer during a period for the purposes of this Division only if, during that
period:
(a) either:
(i) the person was under the age of 16 years; or
(ii) the person had reached the age of 16 years, was under the age of 18
years and was receiving full-time secondary education; and
(b) the person was a resident; and
(c) the taxpayer contributed to the maintenance of the person.
(2) The spouse of a taxpayer is not a dependant of the
taxpayer for the purposes of this Division.
(3) If:
(a) a person to whom paragraphs (1)(a) and (b) apply and a taxpayer
resided together during a period; and
(b) the person referred to in paragraph (a) derived income during the
period;
the taxpayer is taken to have contributed to the maintenance of the person
during the period unless the contrary is established to the satisfaction of the
Commissioner.
(4) A person is taken not to be a dependant of a taxpayer
for the purposes of this Division during a period that is, or occurs during, the
relevant part of the 1996-97 year of income if:
(a) in respect of a person who, during that year of income, had not
reached the age of 16 years and did not receive full-time education—the
amount that would have been the person’s taxable income of that period if
that period had been a year of income exceeded the dependant (under 16) ceiling
for that period; or
(b) in respect of a person who, before or during that year of income,
reached the age of 16 years—the amount that would have been the
person’s taxable income of that period if that period had been a year of
income exceeded the dependant (over 16) ceiling for that period.
(5) A person is taken not to be a dependant of a taxpayer
for the purposes of this Division during a period that is, or occurs during, the
1997-98 year of income or a later year of income if:
(a) in respect of a person who, during the year of income concerned had
not reached the age of 16 years and did not receive full-time
education:
(i) where the period is the year of income concerned—the
person’s taxable income of that year of income exceeded the dependant
(under 16) ceiling for that year of income; or
(ii) where the period occurs during the year of income concerned—the
amount that would have been the person’s taxable income of that period if
that period had been a year of income exceeded the dependant (under 16) ceiling
for that period; or
(b) in respect of a person who, before or during the year of income
concerned, reached the age of 16 years:
(i) where the period is the year of income concerned—the
person’s taxable income of that year of income exceeded the dependant
(over 16) ceiling for the year of income; or
(ii) where the period occurs during the year of income concerned—the
amount that would have been the person’s taxable income of that period if
that period had been a year of income exceeded the dependant (over 16) ceiling
for that period.
(6) In calculating a person’s taxable income of a year of income for
the purposes of this section, any amount of Commonwealth assistance included in
the person’s assessable income of that year of income is taken not to have
been so included.
(7) This section has effect subject to sections 20L, 20M, 20N and
20P.
(8) In this section:
annual young person ceiling means the amount applicable under
paragraph 5(4)(b) of the Social Security Act 1991 (after indexation under
that Act) on 2 January in the year of income.
Commonwealth assistance means a payment by the Commonwealth
of an allowance or reimbursement to, or to a person on behalf of, a student
under a scheme of assistance to students, other than a payment:
(a) by way of a scholarship or bursary; or
(b) made on condition that the student, or the person receiving the
payment on behalf of the student, will (if required) render services to the
Commonwealth.
dependant (over 16) ceiling, in relation to a period that is
the relevant part of the 1996-97 year of income, means the amount worked out
using the formula:
dependant (over 16) ceiling, in relation to a period that
occurs during the relevant part of the 1996-97 year of income, means the amount
worked out using the formula:
dependant (over 16) ceiling, in relation to a period that is
the 1997-98 year of income or a later year of income, means the annual young
person ceiling.
dependant (over 16) ceiling, in relation to a period that
occurs during the 1997-98 year of income or during a later year of income, means
the amount worked out using the formula:
dependant (under 16) ceiling, in relation to a period that is
the relevant part of the 1996-97 year of income, means the amount worked out
using the formula:
dependant (under 16) ceiling, in relation to a period that
occurs during the relevant part of the 1996-97 year of income, means the amount
worked out using the formula:
dependant (under 16) ceiling, in relation to a period that is
the 1997-98 year of income or a later year of income, means the amount worked
out using the formula:
dependant (under 16) ceiling, in relation to a period that
occurs during the 1997-98 year of income or during a later year of income, means
the amount worked out using the formula:
weekly young person ceiling means the amount per week
applicable under paragraph 5(3)(c) of the Social Security Act 1991 (after
indexation under that Act) on 2 January in the year of income.
(1) This section applies to a person (the child) in respect
of a period (the allocation period) that is, or is a part of, a
relevant period if, during the allocation period, the child would, apart from
this section, be a dependant of each of 2 or more persons (the relevant
persons) who do not all reside together.
(2) Subject to subsections (3) and (4), the child is taken to be a
dependant of a relevant person only during a number of days in the allocation
period (the number of days of care) equal to the number of nights
in that period for which the relevant person had the care of the
child.
(3) Subject to subsection (4), a child is taken not to be a dependant of a
relevant person during any part of the allocation period if the number of days
of care is less than 30% of the number of days in the allocation
period.
(4) If, as a result of the application of subsections (2) and (3), the
child is taken to be a dependant of one only of the relevant persons, the child
is taken to be a dependant of that person during the whole of the allocation
period.
(5) For the purposes of subsection (1), persons who ordinarily reside
together are taken to reside together during any period in which they are
temporarily residing apart.
(1) This section applies to a person (the child) in respect
of a period (the allocation period) that is a relevant period, or
is a part of a relevant period that includes the last day of the relevant
period, if, during the allocation period:
(a) the child is, or apart from section 20L would be, a dependant of a
person (the relevant person); and
(b) the child would, apart from this section and section 20L, also be a
dependant of another person or other persons; and
(c) the relevant person and the other person or other persons reside
together.
(2) If subsection 20D(1) or (2) applies to the relevant person in respect
of the year of income that is the allocation period or in which the allocation
period occurs but does not apply to the other person or any of the other persons
in respect of that year of income, the child is taken not to be a dependant of
the other person or any of the other persons during the allocation
period.
(3) If:
(a) the child is taken not to be a dependant of the other person or any of
the other persons during the allocation period because of the operation of
subsection (2); and
(b) another person (the other child) is a dependant, or
other persons (the other children) are dependants, of the relevant
person and would, apart from this section, also be a dependant or dependants of
the other person or any of the other persons during any period in which they
reside together that is the whole or a part of the relevant period;
the other child is also taken not to be a dependant, or the other children
are also taken not to be dependants, of the other person or any of the other
persons during the allocation period.
(4) For the purposes of paragraph (1)(c), persons who ordinarily reside
together are taken to reside together during any period in which they are
temporarily residing apart.
(5) For the purpose only of determining whether a period includes the last
day of a relevant period, if a person (the child) who ceases
during the relevant period but before that day to be a dependant of another
person merely because the child dies or ceases to be a person to whom subsection
20K(1) applies, the child is taken to continue to be a dependant of the other
person until the end of the relevant period.
(1) This section applies to a person (the child) in respect
of a period (the allocation period) that is, or is a part of, a
relevant period if:
(a) the child would, apart from this section and section 20L, be a
dependant of 2 or more persons (the relevant persons) during the
allocation period; and
(b) the relevant persons reside together during the allocation period;
and
(c) section 20M does not apply to the child; and
(d) the relevant persons have made a written agreement (the family
agreement) in accordance with subsection (2) in relation to the child
nominating one of them (the nominee) as the person of whom the
child is the dependant in respect of the allocation period.
(2) The family agreement must be made on or before:
(a) the day on which the first return of income of any of the relevant
persons was lodged for:
(i) if the allocation period is, or occurs in, the relevant part of the
1996-97 year of income—that year of income; or
(ii) if the allocation period is, or occurs in, the 1997-98 year of income
or a later year of income—that year of income; or
(b) such later day as the Commissioner allows.
(3) Subject to this section, the child is taken, in respect of the
allocation period, to be the dependant of the nominee and not to be the
dependant of the other relevant person or any of the other relevant
persons.
(4) Subsection (3) does not apply in respect of the child
unless:
(a) there is no person (other than the child) who would, apart from this
section, be a dependant of all the relevant persons during any period in which
they reside together that is the whole or a part of the relevant period; or
(b) if there is any such person (the other child) or there
are any such persons (the other children)—the agreement
nominates the nominee as the person of whom the other child is the dependant, or
the other children are the dependants, in respect of any period referred to in
paragraph (a).
(5) Subsection (3) does not apply, and is taken never to have applied, if
none of the relevant persons retain the family agreement for the period of 5
years starting on the day on which the agreement was made.
(6) If the family agreement is lost or destroyed and the Commissioner is
satisfied that one of the relevant persons has a document (the substitute
family agreement) that:
(a) is a copy of the family agreement; or
(b) properly records all the matters set out in the family agreement and
was in existence when the family agreement was lost or destroyed;
the substitute family agreement is taken, for the purposes of this section,
to be, and to have been at all times after the family agreement was lost or
destroyed, the family agreement.
(7) If:
(a) the family agreement is lost or destroyed; and
(b) the Commissioner is satisfied that the loss or destruction occurred
because of circumstances beyond the control of the relevant persons;
and
(c) subsection (6) does not apply;
the operation of subsection (3) is not affected, and is taken never to have
been affected, by subsection (5).
(8) Section 170 does not prevent the amendment of an assessment at any
time for the purposes of giving effect to this section.
(9) For the purposes of this section, persons who ordinarily reside
together are taken to reside together during any period in which they are
temporarily residing apart.
(1) This section applies to a person (the child) in respect
of a period (the allocation period) that is, or is a part of, a
relevant period if:
(a) the child would, apart from this section and section 20L, be a
dependant of 2 or more persons (the relevant persons) during the
allocation period; and
(b) the relevant persons reside together during the allocation period;
and
(c) the relevant persons have not made a written agreement in relation to
the child as mentioned in paragraph 20N(1)(d).
(2) Subject to subsection (3), the child is taken, in respect of the
allocation period, not to be a dependant of any of the relevant
persons.
(3) If:
(a) the allocation period does not include the last day of the relevant
period; or
(b) the following subparagraphs apply:
(i) the allocation period includes the last day of the relevant
period;
(ii) section 20M does not apply to the child;
(iii) the Commissioner is satisfied that the reason why the relevant
persons did not make the agreement referred to in paragraph (1)(c) was that they
did not reside together at the end of the relevant period;
then, the child is taken to be a dependant of each of the relevant persons
during a part of the allocation period consisting of the number of days worked
out using the formula:
(4) For
the purposes of the formula in subsection (3), the number of days in the
allocation period is taken to be reduced by the number of days (if any) in that
period during which the child is taken under section 20L not to be the dependant
of any of the relevant persons.
(5) For the purposes of this section, persons who ordinarily reside
together are taken to reside together during any period in which they are
temporarily residing apart.
(6) For the purpose only of determining whether a period includes the last
day of a relevant period, if a person (the child) who ceases
during the relevant period but before that day to be a dependant of another
person merely because the child dies or ceases to be a person to whom subsection
20K(1) applies, the child is taken to continue to be a dependant of the other
person until the end of the relevant period.
(1) Subject to subsection (2), the family income ceiling for
a taxpayer for the purposes of the application of subsection 20C(1) for
the 1996-97 year of income is $70,000.
(2) If a taxpayer had more than one dependant at any time during the
relevant part of the 1996-97 year of income, the family income ceiling
for the taxpayer, for the purposes of the application of subsection
20C(1) for that year of income, is the amount worked out using the
formula:
where:
number of dependants means the maximum number of dependants
that the taxpayer had at any time during the relevant part of that year of
income.
(3) Subject
to subsection (4), the family income ceiling for a taxpayer for
the purposes of the application of subsection 20C(2) for the 1997-98 year
of income or a later year of income is $70,000.
(4) If a taxpayer had more than one dependant at any time during the
1997-98 year of income or a later year of income, the family income
ceiling for the taxpayer for the purposes of the application of
subsection 20C(2), for the year of income concerned is the amount worked out
using the formula:
where:
number of dependants means the maximum number of dependants
that the taxpayer had at any time during the year of income concerned.
(1) Subject
to subsection (2), the taxpayers’ income ceiling for a
taxpayer for the purposes of the application of subsection 20D(1) for
the 1996-97 year of income is $65,000.
(2) If a taxpayer had more than one dependant at any time during the
relevant part of the 1996-97 year of income, the taxpayers’ income
ceiling for the taxpayer for the purposes of the application of
subsection 20D(1) for that year of income is the amount worked out using the
formula:
where:
number of dependants means the maximum number of dependants
that the taxpayer had at any time during the relevant part of that year of
income.
(3) Subject to subsection (4), the taxpayers’ income ceiling
for a taxpayer, for the purposes of the application of subsection
20D(2), for the 1997-98 year of income or a later year of income is
$65,000.
(4) If a taxpayer had more than one dependant at any time during the
1997-98 year of income or a later year of income, the taxpayers’
income ceiling for the taxpayer, for the purposes of the application of
subsection 20D(2) for the year of income concerned, is the amount worked out
using the formula:
where:
number of dependants means the maximum number of dependants
that the taxpayer had at any time during the year of income concerned.
(1) This section has effect for the purposes of the application of section
20C in respect of a relevant period to a taxpayer in relation to a person (the
child) if the child was a dependant of the taxpayer during part
only of the relevant period.
(2) If the relevant period is the relevant part of the 1996-97 year of
income, subsection 20C(1) has effect as if the amount of $500 referred to in
that subsection were replaced by the amount worked out using the following
formula:
where:
period of dependency means the number of days in the relevant
period on which the child was a dependant of the taxpayer.
(3) If the relevant period is the 1997-98 year of income or a later year
of income, subsection 20C(2) has effect as if the amount of $1,000 referred to
in that subsection were replaced by the amount worked out using the following
formula:
where:
period of dependency means the number of days in the relevant
period on which the child was a dependant of the taxpayer.
(4) If the amount worked out under subsection (2) or (3) is an amount of
dollars and cents, the amount is to be rounded up to the nearest whole
dollar.
(1) This section has effect for the purposes of the application of section
20D in respect of a relevant period to a taxpayer if the taxpayer had, during
part only of the relevant period, at least one dependant under the age of 5
years.
(2) If the relevant period is the relevant part of the 1996-97 year of
income, subsection 20D(1) has effect as if the amount of $1,250 referred to in
that subsection were replaced by the amount worked out using the following
formula:
where:
period of dependency means the number of days in the relevant
period on which the taxpayer had at least one dependant under the age of 5
years.
(3) If the relevant period is the 1997-98 year of income or a later year
of income, subsection 20D(2) has effect as if the amount of $2,500 referred to
in that subsection were replaced by the amount worked out using the following
formula:
where:
period of dependency means the number of days in the relevant
period on which the taxpayer had at least one dependant under the age of 5
years.
(4) If the amount worked out under subsection (2) or (3) is an amount of
dollars and cents, the amount is to be rounded up to the nearest whole
dollar.
(1) In this section:
section 20C tax-free threshold increase means the amount (if
any) by which the amount of $5,400 in column 1 of the table in clause 1 of Part
1 of Schedule 7 would, apart from this section, be increased by section 20C
or be increased by that section if it applied to the taxpayer.
section 20D tax-free threshold increase means the amount (if
any) by which the amount of $5,400 in column 1 of the table in clause 1 of Part
1 of Schedule 7 would, apart from this section, be increased by section 20D
or be increased by that section if it applied to the taxpayer.
(2) If, during the relevant part of the 1996-97 year of income or during
the 1997-98 year of income or a later year of income:
(a) the taxpayer or his or her spouse received any payments of family tax
payment under the Social Security Act 1991; or
(b) another person received any payments of family tax payment under the
Social Security Act 1991 in respect of a child at a time when:
(i) the taxpayer and the other person resided together; and
(ii) the child was a dependant of each of them;
the following provisions have effect.
(3) Any section 20C tax-free threshold increase in relation to the
taxpayer in respect of the year of income concerned is reduced (but not below
nil) by the amount worked out using the formula:
where:
Part A payments means the sum of so much of the payments of
family tax payment as represented payments made at the fortnightly Part A rate
of family tax payment referred to in Module A of the Family Tax Payment
Rate Calculator at the end of section 1070 of the Social Security Act
1991.
(4) Any section 20D tax-free threshold increase in relation to the
taxpayer in respect of the year of income concerned is reduced (but not below
nil) by the amount worked out using the formula:
where:
Part B payments means the sum of so much of the payments of
family tax payment as represented payments made at the fortnightly Part B rate
of family tax payment referred to in Module A of the Family Tax Payment
Rate Calculator at the end of section 1070 of the Social Security Act
1991.
(5) If an amount worked out under subsection (3) or (4) is an amount of
dollars and cents, the amount is to be rounded up to the nearest whole
dollar.
3 Clause 2 of Division 1 of Part I of Schedule
8
Omit “The notional”, substitute “Subject to clause 3, the
notional”.
4 After Clause 2 of Division 1 of Part I of
Schedule 8
Insert:
3. The notional rate in respect of income to which this Division applies is
to be calculated under clause 2 as if Division 5 of Part II had not been
enacted.