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This is a Bill, not an Act. For current law, see the Acts databases.
2013-2014
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Tax Laws Amendment (Temporary
Budget Repair Levy) Bill 2014
No. , 2014
(Treasury)
A Bill for an Act to amend the law relating to
taxation, and for related purposes
No. , 2014
Tax Laws Amendment (Temporary Budget Repair Levy) Bill 2014
i
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
No. , 2014
Tax Laws Amendment (Temporary Budget Repair Levy) Bill 2014
1
A Bill for an Act to amend the law relating to
1
taxation, and for related purposes
2
The Parliament of Australia enacts:
3
1 Short title
4
This Act may be cited as the Tax Laws Amendment (Temporary
5
Budget Repair Levy) Act 2014.
6
2 Commencement
7
(1) Each provision of this Act specified in column 1 of the table
8
commences, or is taken to have commenced, in accordance with
9
column 2 of the table. Any other statement in column 2 has effect
10
according to its terms.
11
12
2
Tax Laws Amendment (Temporary Budget Repair Levy) Bill 2014
No. , 2014
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. 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.
Note:
This table relates only to the provisions of this Act as originally
1
enacted. It will not be amended to deal with any later amendments of
2
this Act.
3
(2) Any information in column 3 of the table is not part of this Act.
4
Information may be inserted in this column, or information in it
5
may be edited, in any published version of this Act.
6
3 Schedule(s)
7
Each Act that is specified in a Schedule to this Act is amended or
8
repealed as set out in the applicable items in the Schedule
9
concerned, and any other item in a Schedule to this Act has effect
10
according to its terms.
11
Temporary budget repair levy Schedule 1
No. , 2014
Tax Laws Amendment (Temporary Budget Repair Levy) Bill 2014
3
Schedule 1
--Temporary budget repair levy
1
2
Income Tax Assessment Act 1997
3
1 At the end of subsection 4-10(3)
4
Add:
5
Note 3:
Section 4-11 of the Income Tax (Transitional Provisions) Act 1997
6
(which is about the temporary budget repair levy) may increase the
7
amount of income tax worked out under this section.
8
Income Tax (Transitional Provisions) Act 1997
9
2 At the end of Division 4
10
Add:
11
4-11 Temporary budget repair levy
12
Temporary budget repair levy
13
(1) You must pay extra income tax (temporary budget repair levy) for
14
a financial year if:
15
(a) you are an individual; and
16
(b) your taxable income for the corresponding income year
17
exceeds $180,000; and
18
(c) the financial year is a temporary budget repair levy year.
19
Note:
This section will also affect the income tax payable by some trustees
20
who are taxed as if certain trust income were income of individuals.
21
See sections 98 and 99 of the Income Tax Assessment Act 1936.
22
Amount of temporary budget repair levy
23
(2) Your temporary budget repair levy is worked out by reference to
24
your taxable income for the corresponding income year using the
25
rate or rates that apply to you.
26
Note:
See Part IV of the Income Tax Rates Act 1986.
27
Schedule 1 Temporary budget repair levy
4
Tax Laws Amendment (Temporary Budget Repair Levy) Bill 2014
No. , 2014
Interaction with other provisions
1
(3) For the purpose of working out your income tax for the financial
2
year:
3
(a) section 4-10 of the Income Tax Assessment Act 1997 has
4
effect as if it made you liable to pay the extra tax mentioned
5
in subsection (1) of this section; and
6
(b) subsection 4-10(3) of that Act has effect as if step 4 of the
7
method statement in that subsection were omitted and the
8
following were substituted:
9
Step 3A. Subtract your tax offsets from your basic income tax
10
liability.
11
For the list of tax offsets, see section 13-1.
12
Step 3B. Add the extra income tax you must pay as mentioned in
13
subsection 4-11(1) of the Income Tax (Transitional
14
Provisions) Act 1997.
15
Step 4. If an amount of your tax offset for foreign income tax
16
under Division 770 remains after applying section 63-10,
17
subtract the remaining amount from the result of step 3B.
18
The result is how much income tax you owe for the
19
financial year.
20
(4) To avoid doubt, temporary budget repair levy is not included in
21
your basic income tax liability.
22
Note:
As a result, you cannot apply any tax offsets against temporary budget
23
repair levy under Part 2-20 of the Income Tax Assessment Act 1997
24
(apart from the foreign income tax offset applied under step 4 of the
25
method statement in subsection (3)).
26
Meaning of temporary budget repair levy year
27
(5) Each of the following is a temporary budget repair levy year:
28
(a) the 2014-15 financial year;
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(b) the 2015-16 financial year;
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(c) the 2016-17 financial year.
31
Consequential amendments for fringe benefits tax Schedule 2
No. , 2014
Tax Laws Amendment (Temporary Budget Repair Levy) Bill 2014
5
Schedule 2
--Consequential amendments for
1
fringe benefits tax
2
3
Fringe Benefits Tax Assessment Act 1986
4
1 Subsection 65J(2A) (formula)
5
Repeal the formula, substitute:
6
Rebatable
days in
Aggregate
year
FBT
Gross tax
non-rebatable
rate
Total days
amount
in year
7
2 After Part XIC
8
Insert:
9
Part XID--Temporary budget repair levy
10
11
135Y Temporary budget repair levy
12
Application
13
(1) This section applies to the temporary budget repair levy years for
14
FBT (within the meaning of section 6A of the Fringe Benefits Tax
15
Act 1986).
16
Modification for aggregate non-exempt amount
17
(2) The method statement in subsection 5B(1E) has effect as if:
18
(a) each reference in that method statement to $17,000 was
19
instead a reference to $17,667; and
20
(b) the reference in that method statement to $30,000 was instead
21
a reference to $31,177.
22
Schedule 2 Consequential amendments for fringe benefits tax
6
Tax Laws Amendment (Temporary Budget Repair Levy) Bill 2014
No. , 2014
Modified rebate for certain not-for-profit employers
1
(3) The method statement in subsection 65J(2B) has effect as if the
2
reference in that method statement to $30,000 was instead a
3
reference to $31,177.
4
Note:
The FBT rate is increased by 2 percentage points in the temporary
5
budget repair levy years for FBT: see section 6A of the Fringe
6
Benefits Tax Act 1986.
7
3 Application
8
The amendment made by item 1 of this Schedule applies to assessments
9
for the year of tax starting on 1 April 2015 and later years of tax.
10
Amendment of the Taxation Administration Regulations 1976 Schedule 3
No. , 2014
Tax Laws Amendment (Temporary Budget Repair Levy) Bill 2014
7
Schedule 3
--Amendment of the Taxation
1
Administration Regulations 1976
2
3
1 Regulation 2 (at the end of the definition of top rate)
4
Add:
5
Note:
This definition is modified by regulation 2A in the temporary budget
6
repair levy years.
7
2 After regulation 2
8
Insert:
9
2A Temporary budget repair levy
10
(1) This regulation applies to the temporary budget repair levy years.
11
Increase in highest rate
12
(2) These regulations have effect as if the highest rate specified in each
13
of the following was increased by 2 percentage points:
14
(a) the table in Part I of Schedule 7 to the Income Tax Rates Act
15
1986;
16
(b) the table in Part II of that Schedule.
17
(3) In this regulation:
18
temporary budget repair levy year has the same meaning as in
19
section 4-11 of the Income Tax (Transitional Provisions) Act 1997.
20
3 Subregulation 36(2)
21
Omit "0.45", substitute "the highest rate specified in the table in Part II
22
of Schedule 7 to the Income Tax Rates Act 1986".
23
4 Subregulation 36(3)
24
Omit "0.465", substitute "the top rate".
25