Commonwealth Numbered Regulations

INCOME TAX REGULATIONS (AMENDMENT) 1997 No. 148 - REG 7

7.1 After Division 1 of Part 8, insert:

"Division 1A - Rebate under sections 160AAAA and 160AAAB of the Act
Definitions

"150AA. In this Division:
'equivalent circumstances income limit' has the meaning given by regulation
150AC;
'rebate amount' has the meaning given by subregulation 150AB (2);
'rebate threshold' has the meaning given by subregulation 150AB (3);
'relevant income-recipient' means:

   (a)  the taxpayer, if the taxpayer is an individual (except in the capacity
        of a trustee); and

   (b)  the beneficiary of a trust, if the trustee in relation to the trust:

        (i)    is the taxpayer; and

        (ii)   is liable to be assessed under section 98 of the Act in respect
               of the beneficiary's share of the net income of the trust
               estate. Eligibility - amount of taxable income

"150AB. (1) For paragraph 160AAAA (3) (a) or 160AAAB (3) (a) of the Act, the
amount mentioned is:

rebate amount + taxpayer's rebate threshold
0.125 where:
'rebate amount' has the meaning given by subregulation (2);
'rebate threshold' has the meaning given by subregulation (3).

"(2) For this regulation, a rebate amount for a year of income is:
  lowest marginal tax rate     X      [    equivalent

  circumstances income limit   Ð           tax-freethreshold ]
where:
'equivalent circumstances income limit' is, in relation to the taxpayer, the
equivalent circumstances income limit of the relevant income-recipient.

"(3) For this regulation, a rebate threshold for a year of income is:
       tax-free threshold +          rebate amount

lowest marginal tax rate

where:
'rebate amount' has the meaning given by subregulation (2). [NOTE: 'lowest
marginal tax rate' and 'tax-free threshold' are defined in regulation 148.]

"(4) If an amount worked out under subregulation (1), (2) or (3) is not an
amount of whole dollars, the amount must be rounded up to the nearest whole
dollar. Equivalent circumstances income limit

"150AC. (1) Subject to subregulations (2) and (3), for regulation 150AB, the
equivalent circumstances income limit of a relevant income- recipient for a
year of income is:

   (a)  if the relevant income-recipient, at any time in the year of income,
        is not the spouse of another person - an amount equal to the sum of:

        (i)    the amount that would have been included in his or her
               assessable income of the year of income if he or she had
               received a single-rate social security pension throughout that
               year; and

        (ii)   the amount applicable under item 1 of column 2 in Table E-1 at
               point 1064-E4 of SSA91 indexed in accordance with Division 2 of
               Part 3.16 of that Act; and

   (b)  if the relevant income-recipient (other than a relevant income-
        recipient mentioned in paragraph (c)), at any time in the year of
        income, is the spouse of another person - an amount equal to the sum
        of:

        (i)    the amount that would have been included in his or her
               assessable income of the year of income if he or she had
               received a partnered-rate social security pension throughout
               that year; and

        (ii)   the amount applicable under item 4 of column 2 in Table E-1 at
               point 1064-E4 of SSA91, indexed in accordance with Division 2
               of Part 3.16 of that Act; and

   (c)  if the relevant income-recipient, at any time in the year of income,
        is the spouse of another person from whom he or she is separated in
        circumstances in which, if the relevant income-recipient was otherwise
        entitled to receive a partnered-rate social security  pension, he or
        she would be entitled to receive an illness-separated- rate social
        security pension - an amount equal to the sum of:

        (i)    the amount that would have been included in his or her
               assessable income of the year of income if he or she had
               received an illness-separated-rate social security pension
               throughout that year; and

        (ii)   the amount applicable under item 4 of column 2 in Table E-1 at
               point 1064-E4 of SSA91, indexed in accordance with Division 2
               of Part 3.16 of that Act.

"(2) If an amount worked out under paragraph (1) (a), (b) or (c) is not an
amount of whole dollars, the amount must be rounded down to the nearest whole
dollar.

"(3) If, in a year of income, a relevant income-recipient is a person to whom
more than one of paragraphs (1) (a), (b) or (c) applies, the equivalent
circumstances income limit of that person for that year of income is the limit
that, having regard to regulation 150AD, gives the taxpayer the greatest
rebate entitlement. Rebate for low income aged persons

"150AD. Subject to regulations 150AE and 150AF, a taxpayer who, under section
160AAAA or 160AAAB of the Act, is eligible, in a year of income, for a rebate
of tax is entitled, in respect of income, or trust income, of the year of
income, to a rebate of tax amounting to:

   (a)  for the year of income ending on 30 June 1997:

        (i)    if the relevant income-recipient's taxable income of the year
               of income does not exceed his or her rebate threshold - half
               the taxpayer's rebate amount; or

        (ii)   if the relevant income-recipient's taxable income of the year
               of income exceeds his or her rebate threshold - half the
               taxpayer's rebate amount as reduced by 12.5 cents for each $1
               of the amount of the excess; and

   (b)  for a later year of income:

        (i)    if the relevant income-recipient's taxable income of the year
               of income does not exceed his or her rebate threshold - the
               taxpayer's rebate amount; or

        (ii)   if the relevant income-recipient's taxable income of the year
               of income exceeds his or her rebate threshold - the taxpayer's
               rebate amount, reduced by 12.5 cents for each $1 of the amount
               of the excess. Transfer of unused rebate from taxpayer other
               than trustee

"150AE. (1) Regulation 150AD is affected by subregulation (2) if, in relation
to a year of income:

   (a)  a taxpayer ('TP1') and a person who is, at any time in that year of
        income, TP1's spouse ('TP2') are each:

        (i)    under section 160AAAA of the Act - entitled to a rebate of tax;
               and

        (ii)   in relation to the rebate to which he or she is entitled - the
               relevant income-recipient; and

   (b)  TP1's rebate amount for the year of income exceeds the tax payable by
        TP1 in respect of income of that year (disregarding any credits or
        rebates); and

   (c)  the amount of the rebate to which, apart from this subregulation, TP2
        is entitled under section 160AAAA of the Act for the year of income is
        less than TP2's rebate amount for that year.

"(2) In the circumstances mentioned in subregulation (1), the rebate amount
for the year of income is:

   (a)  for TP1 - the amount ascertained under subregulation 150AB (2) reduced
        by the amount of the excess rebate amount mentioned in paragraph (1)
        (b); and

   (b)  for TP2 - the amount ascertained under subregulation 150AB (2)
        increased by the amount of the excess rebate amount mentioned in
        paragraph (1) (b).

"(3) Regulation 150AD is affected by subregulation (4) if, in relation to a
year of income:

   (a)  a taxpayer ('TP1') is:

        (i)    under section 160AAAA of the Act - entitled to a rebate of tax;
               and

        (ii)   in relation to the rebate to which he or she is entitled - the
               relevant income-recipient; and

   (b)  TP1 is, at any time in that year of income, the spouse of a person who
        is a relevant income-recipient in relation to a taxpayer ('TP2') who
        is entitled under section 160AAAB to a rebate of tax; and

   (c)  TP1's rebate amount for the year of income exceeds the tax payable by
        TP1 in respect of income of that year (disregarding any credits or
        rebates); and

   (d)  the amount of the rebate to which, apart from this subregulation, TP2
        is entitled under section 160AAAB for the year of income in relation
        to TP1's spouse is less than TP2's rebate amount for that year in
        relation to TP1's spouse.

"(4) In the circumstances mentioned in subregulation (3), the rebate amount
for the year of income is:

   (a)  for TP1 - the amount ascertained under subregulation 150AB (2) reduced
        by the amount of the excess rebate amount mentioned in paragraph (3)
        (c); and

   (b)  for TP2 - the amount ascertained under subregulation 150AB (2)
        increased by the amount of the excess rebate amount mentioned in
        paragraph (3) (c).

"(5) For paragraphs (1) (c) and (3) (d), if the year of income concerned is
the year of income ending on 30 June 1997, the amount of rebate to which TP2
is entitled is taken to be the amount mentioned in paragraph 150AD (b).

"(6) If the year of income mentioned in subregulation (1) or (3) is the year
of income ending on 30 June 1997, the amount ascertained under paragraph (2)
(b) or (4) (b) is limited to the amount of tax payable by TP2 in respect of
income of that year.

"(7) This regulation applies whether TP1 is, or is not, the same person as
TP2.

"(8) For this regulation, a taxpayer's rebate amount for a year of income is
calculated as if the equivalent circumstances income limit of the relevant
income-recipient is the amount ascertained under paragraph 150AC (1) (b) or
(c), as the case requires.

"(9) For paragraphs 2 (b) and 4 (b), the amount ascertained under
subregulation 150AB (2) is calculated as if the equivalent circumstances
income limit of the relevant income-recipient is the amount ascertained under
paragraph 150AC (1) (b) or (c), as the case requires. Transfer of unused
rebate from taxpayer who is trustee

"150AF. (1) Regulation 150AD is affected by subregulation (2) if, in relation
to a year of income:

   (a)  a taxpayer ('TP1') is entitled to a rebate under section 160AAAB of
        the Act; and

   (b)  the relevant income-recipient in relation to that rebate is, at any
        time in that year of income, the spouse of a taxpayer ('TP2') who is
        entitled to a rebate of tax under section 160AAAA of the Act; and

   (c)  TP1's rebate amount in relation to the relevant income-recipient
        mentioned in paragraph (b) exceeds the tax payable by TP1 in relation
        to that relevant income-recipient for income of that year
        (disregarding any credits or rebates); and

   (d)  the amount of the rebate to which, apart from this subregulation, TP2
        is entitled under section 160AAAA of the Act for the year of income is
        less than TP2's rebate amount for that year.

"(2) In the circumstances mentioned in subregulation (1), the rebate amount
for the year of income is:

   (a)  for TP1 - the amount ascertained under subregulation 150AB (2) reduced
        by the amount of the excess rebate amount mentioned in paragraph (1)
        (c); and

   (b)  for TP2 - the amount ascertained under subregulation 150AB (2)
        increased by the amount of the excess rebate amount mentioned in
        paragraph (1) (c).

"(3) Regulation 150AD is affected by subregulation (4) if, in relation to a
year of income:

   (a)  a taxpayer ('TP1') is entitled to a rebate under section 160AAAB of
        the Act; and

   (b)  the relevant income-recipient in relation to TP1 ('RIR1') is, at any
        time in that year of income, the spouse of a person ('RIR2') who is
        the relevant income-recipient in relation to a taxpayer ('TP2') who is
        entitled to a rebate of tax under section 160AAAB of the Act; and

   (c)  TP1's rebate amount in relation to RIR1 exceeds the tax payable by TP1
        in relation to RIR1 for income of that year (disregarding any credits
        or rebates); and

   (d)  the amount of the rebate to which, apart from this subregulation, TP2
        is entitled under section 160AAAB of the Act for the year of income in
        relation to RIR2 is less than TP2's rebate amount for that year in
        relation to RIR2.

"(4) In the circumstances mentioned in subregulation (3), the rebate amount
for the year of income:

   (a)  for TP1 - is the amount ascertained under subregulation 150AB (2)
        reduced by the amount of the excess rebate amount mentioned in
        paragraph (3) (c); and

   (b)  for TP2 - is the amount ascertained under subregulation 150AB (2)
        increased by the amount of the excess rebate amount mentioned in
        paragraph (3) (c).

"(5) For paragraphs (1) (d) and (3) (d), if the year of income concerned is
the year of income ending on 30 June 1997, the amount of rebate to which TP2
is entitled is taken to be the amount mentioned in paragraph 150AD (b).

"(6) If the year of income mentioned in subregulation (1) or (3) is the year
of income ending on 30 June 1997 the amount ascertained under paragraph (2)
(b) or (4) (b) is limited to the tax payable by TP2 in respect of income of
that year.

"(7) This regulation applies whether TP1 is, or is not, the same person as
TP2.

"(8) For this regulation, a taxpayer's rebate amount for a year of income is
calculated as if the equivalent circumstances income limit of the relevant
income-recipient is the amount ascertained under paragraph 150AC (1) (b) or
(c), as the case requires.

"(9) For paragraphs 2 (b) and 4 (b), the amount ascertained under
subregulation 150AB (2) is calculated as if the equivalent circumstances
income limit of the relevant income-recipient is the amount ascertained under
paragraph 150AC (1) (b) or (c), as the case requires.".