TAX LAWS AMENDMENT (TEMPORARY FLOOD RECONSTRUCTION LEVY) BILL 2011

i Tax Laws Amendment (Temporary Flood Reconstruction Levy) Bill 2011 No. , 2011

Contents

1 Short

title

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2 Commencement

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3 Schedule(s)

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Schedule 1--Main amendments

Income Tax Assessment Act 1997

Income Tax (Transitional Provisions) Act 1997

Schedule 2--Sunsetting

Income Tax Assessment Act 1997

Income Tax (Transitional Provisions) Act 1997

Tax Laws Amendment (Temporary Flood Reconstruction Levy) Bill 2011 No. , 2011 1

A Bill for an Act to amend the law relating to

taxation, and for related purposes

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Tax Laws Amendment (Temporary

Flood Reconstruction Levy) 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 Tax Laws Amendment (Temporary Flood Reconstruction Levy) 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

The later of:

(a) the day this Act receives the Royal

Assent; and

(b) the day the Income Tax Rates

Amendment (Temporary Flood

Reconstruction Levy) Act 2011 receives

the Royal Assent.

However, the provision(s) do not commence

at all if the event mentioned in paragraph (b)

does not occur.

3. Schedule 2

The later of:

(a) 1 July 2016; and

(b) the day the Income Tax Rates

Amendment (Temporary Flood

Reconstruction Levy) Act 2011 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

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repealed as set out in the applicable items in the Schedule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 Main amendments

4 Tax Laws Amendment (Temporary Flood Reconstruction Levy) Bill 2011 No. ,

2011

Schedule 1--Main amendments

Income Tax Assessment Act 1997

1 Subsection 4-10(3) (note)

Omit "Note", substitute "Note 1".

2 At the end of subsection 4-10(3)

Add:

Note 2:

In addition to the income tax worked out under this section, you may

also have to pay additional income tax (known as temporary flood

reconstruction levy) for the 2011-12 financial year. See section 4-10

of the Income Tax (Transitional Provisions) Act 1997.

Income Tax (Transitional Provisions) Act 1997

3 At the end of Division 4

Add:

4-10 Temporary flood reconstruction levy

Temporary flood reconstruction levy

(1) You must pay extra income tax (temporary flood reconstruction

levy) for the 2011-12 financial year if:

(a) you are an individual; and

(b) your taxable income for the 2011-12 income year exceeds

$50,000.

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.

(2) Subsection (1) does not apply if you are a member of a class of

individuals specified in a legislative instrument made by the

Minister for the purposes of this subsection.

(3) The Minister may only specify a class of individuals for the

purposes of subsection (2) if the Minister is satisfied that the class

was affected by a natural disaster that happened in Australia

between:

Main amendments Schedule 1

Tax Laws Amendment (Temporary Flood Reconstruction Levy) Bill 2011 No. , 2011

(a) 1 July 2010; and

(b) 30 June 2012.

Amount of temporary flood reconstruction levy

(4) Your temporary flood reconstruction levy is worked out by

reference to your taxable income for the 2011-12 income year,

using the rate or rates that apply to you.

Note:

See section 12B of the Income Tax Rates Act 1986.

Interaction with other provisions

(5) For the purpose of working out your income tax for the 2011-12

financial year, subsection 4-10(3) of the Income Tax Assessment

Act 1997 has effect as if it stated that your income tax for the

financial year is the total of:

(a) the amount worked out using the method statement in that

subsection; and

(b) the amount of any extra tax you must pay as mentioned in

subsection (1) of this section.

(6) To avoid doubt, temporary flood reconstruction levy is not

included in your basic income tax liability worked out in

accordance with step 2 of the method statement in subsection

4-10(3) of the Income Tax Assessment Act 1997.

Note:

You cannot apply any tax offsets against temporary flood

reconstruction levy under Part 2-20 of the Income Tax Assessment Act

1997, because temporary flood reconstruction levy is not included in

your basic income tax liability.

(7) Disregard this section for the purposes of section 770-75 of the

Income Tax Assessment Act 1997 (Foreign income tax offset limit).

Schedule 2 Sunsetting

6 Tax Laws Amendment (Temporary Flood Reconstruction Levy) Bill 2011 No. ,

2011

Schedule 2--Sunsetting

Income Tax Assessment Act 1997

1 Subsection 4-10(3) (note 1)

Omit "Note 1", substitute "Note".

2 Subsection 4-10(3) (note 2)

Repeal the note.

Income Tax (Transitional Provisions) Act 1997

3 Section 4-10

Repeal the section.

Commonwealth of Australia Bills

TAX LAWS AMENDMENT (TEMPORARY FLOOD RECONSTRUCTION LEVY) BILL 2011