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This is a Bill, not an Act. For current law, see the Acts databases.
1996-97
The Parliament of
the
Commonwealth of
Australia
HOUSE OF
REPRESENTATIVES
Presented and read a first
time
Termination
Payments Surcharge Imposition Bill 1997
No.
, 1997
(Treasury)
A Bill
for an Act to impose a termination payments surcharge and to declare the rate of
the surcharge
9701220—1,550/11.2.1997—(12/97) CAt. No.
96 5898 X ISBN 0644 496614
Contents
A Bill for an Act to impose a termination payments
surcharge and to declare the rate of the surcharge
The Parliament of Australia enacts:
This Act may be cited as the Termination Payments
Surcharge Imposition Act 1997.
This Act commences on the day on which it receives the
Royal Assent.
Expressions used in this Act that are defined by the
Termination Payments Surcharge (Assessment and Collection) Act 1997 have
the same meanings as in that Act.
The termination payments surcharge that is payable on a
termination payment made to or for a taxpayer under the Termination Payments
Surcharge (Assessment and Collection) Act 1997 is imposed by this
Act.
(1) If the taxpayer’s adjusted taxable income for a
financial year (relevant adjusted taxable income) is not less than
$70,000 but is less than $85,000, the rate of the termination payments surcharge
payable on a termination payment made to or for the taxpayer in that year is the
percentage of the amount of the payment worked out using the
formula:
(2) If the taxpayer’s adjusted taxable income for a
financial year is $85,000 or a higher amount, the rate of the termination
payments surcharge payable in respect of a termination payment made to or for
the taxpayer in that year is 15% of the amount of the payment.
Indexation of certain amounts for 1997-98 financial year
and later financial years
(1) Section 5 applies in relation to an indexing financial
year as if each indexable amount were replaced by the amount worked out using
the formula:
where:
previous indexable amount means the indexable
amount for the financial year immediately before the indexing financial
year.
relevant indexation factor means the
indexation factor for the indexing financial year.
Rounding off of indexed amounts
(2) If an amount worked out under subsection (1) is an
amount of dollars and cents:
(a) if the number of cents is less than 50—the amount
is to be rounded down to the nearest whole dollar; or
(b) otherwise—the amount is to be rounded up to the
nearest whole dollar.
Indexation factor
(3) The indexation factor for an indexing
financial year is the number calculated, to 3 decimal places, using the
formula:
where:
current March year means the period of 12
months ending on 31 March immediately before the indexing financial
year.
previous March year means the period of 12
months immediately before the current March year.
Rounding up of indexation factor
(4) If the number calculated under subsection (3) for
a financial year would, if it were worked out to 4 decimal places, end with a
number greater than 4, the number so calculated is increased by
0.001.
Change in index numbers
(5) If, at any time, whether before or after the
commencement of this Act, the Australian Statistician has published or publishes
an index number for a quarter in substitution for an index number previously
published for the quarter, the publication of the later index number is to be
disregarded.
Indexable amounts to be published
(6) The Commissioner must publish before, or as soon as
practicable after, the start of the 1997-98 financial year, and before the start
of each later financial year, the indexable amounts as replaced under
subsection (1) for that year.
Definitions
(7) In this section:
indexable amount means:
(a) an amount stated in section 5; or
(b) if that amount has previously been altered under this
section—the altered amount.
indexing financial year means the 1997-98
financial year or a later financial year.
index number, for a quarter, means the
estimate of full-time adult average weekly ordinary time earnings for the middle
month of the quarter published by the Australian Statistician.
Note: For the purposes of this section, Australian
Statistician means the Australian Statistician referred to in
subsection 5(2) of the Australian Bureau of Statistics Act
1975.