Commonwealth Numbered Acts

TAX LAWS AMENDMENT (MEDICARE LEVY SURCHARGE THRESHOLDS) ACT (NO. 2) 2008 (NO. 110, 2008) - SCHEDULE 1

Part 1 -- Amendments

A New Tax System (Medicare Levy Surcharge--Fringe Benefits) Act 1999

1  Subsection 3(1)

Insert:

"singles surcharge threshold" for a person for a year of income has the meaning given by section 5A.

2  After section 5

Insert:

5A   What is the singles surcharge threshold ?

             (1)  The singles surcharge threshold for a person for the 2008‑09 year of income is $70,000. This amount is indexed annually.

Indexation of singles surcharge threshold

             (2)  The amount of the singles surcharge threshold is indexed annually by:

                     (a)  multiplying the singles surcharge threshold for the 2008‑09 year of income by its indexation factor; and

                     (b)  rounding the result in paragraph (a) down to the nearest multiple of $1,000.

             (3)  The singles surcharge threshold is not indexed if its indexation factor is 1 or less.

             (4)  The indexation factor is:

             (5)  The indexation factor mentioned in subsection (4) is calculated to 3 decimal places (rounding up if the fourth decimal place is 5 or more).

             (6)  The index number for a quarter is the estimate of full‑time adult average weekly ordinary time earnings for the middle month of the quarter first published by the Australian Statistician for that month.

3  Subsection 6(1)

Omit "$100,000", substitute "an amount equal to double the singles surcharge threshold for the year of income".

4  Subsection 6(2)

Repeal the subsection, substitute:

             (2)  However, if the person has 2 or more dependants who are children, the family surcharge threshold for the person for the year of income is the sum of:

                     (a)  an amount equal to double the singles surcharge threshold for the year of income; and

                     (b)  the result of the following formula:

Example:    If a person has 3 dependants who are children, the family surcharge threshold for the 2008‑09 year of income is:

5  Paragraph 12(1)(a)

Omit "$50,000", substitute "the singles surcharge threshold for the year of income".

Medicare Levy Act 1986

6  Subsection 3(1)

Insert:

"singles surcharge threshold" for a person for a year of income has the meaning given by section 3AA.

7  After section 3

Insert:

3AA   Meaning of singles surcharge threshold

             (1)  The singles surcharge threshold for a person for the 2008‑09 year of income is $70,000. This amount is indexed annually.

Indexation of singles surcharge threshold

             (2)  The amount of the singles surcharge threshold is indexed annually by:

                     (a)  multiplying the singles surcharge threshold for the 2008‑09 year of income by its indexation factor; and

                     (b)  rounding the result in paragraph (a) down to the nearest multiple of $1,000.

             (3)  The singles surcharge threshold is not indexed if its indexation factor is 1 or less.

             (4)  The indexation factor is:

             (5)  The indexation factor mentioned in subsection (4) is calculated to 3 decimal places (rounding up if the fourth decimal place is 5 or more).

             (6)  The index number for a quarter is the estimate of full‑time adult average weekly ordinary time earnings for the middle month of the quarter first published by the Australian Statistician for that month.

8  Section 3A

Repeal the section, substitute:

3A   Meaning of family surcharge threshold

             (1)  In sections 8C, 8D, 8F and 8G, the family surcharge threshold for a year of income is an amount equal to double the singles surcharge threshold for the year of income.

             (2)  However, if the person has 2 or more dependants who are children, the family surcharge threshold for the person for the year of income is the sum of:

                     (a)  an amount equal to double the singles surcharge threshold for the year of income; and

                     (b)  the result of the following formula:

Example:    If a person has 3 dependants who are children, the family surcharge threshold for the 2008‑09 year of income is:

9  Subsection 8B(2)

Omit "$50,000", substitute "the singles surcharge threshold for the year of income".

10  Subsection 8E(2)

Omit "$50,000", substitute "the singles surcharge threshold for the year of income".

Part 2 -- Application

11  Application

The amendments made by this Schedule apply to assessments for the 2008‑09 year of income and later years of income.

12  Transitional

(1)        In this item:

new Act means the A New Tax System (Medicare Levy Surcharge--Fringe Benefits) Act 1999 , and the Medicare Levy Act 1986 , as amended by this Schedule.

(2)        For the purposes of the new Acts, if:

                     (a)  a person is covered by an insurance policy that provides private patient hospital cover; and

                     (b)  the person is covered by that policy:

                              (i)  during any part of the period starting on 1 July 2008 and ending on 31 December 2008 (the designated period ); and

                             (ii)  on 1 January 2009;

the person is taken to be covered by that policy during the whole of the designated period.

Note:       For this purpose, a person includes a dependant of another person.