A New Tax System (Income Tax Laws Amendment) Bill 1998

A New Tax System (Income Tax Laws Amendment) Act 1999

No. 60, 1999

An Act to implement A New Tax System by amending the law about income tax, and for related purposes

[Assented to 8 July 1999]

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the A New Tax System (Income Tax Laws Amendment) Act 1999.

2 Commencement

(1) This Act commences, or is taken to have commenced:

(a) after all the Acts listed in subsection (2) have received the Royal Assent; and

(b) on the day after the last day on which any of those Acts received the Royal Assent.

(2) These are the Acts that must have received the Royal Assent for this Act to commence:

(a) the A New Tax System (Goods and Services Tax) Act 1999;

(b) the A New Tax System (Goods and Services Tax Administration) Act 1999;

(d) the A New Tax System (Goods and Services Tax Imposition—Customs) Act 1999;

(e) the A New Tax System (Goods and Services Tax Imposition—General) Act 1999.

3 Schedule(s)

(1) Subject to section 2, each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

(2) The Income Tax Regulations are amended as set out in the applicable items in Schedule 3 to this Act, and any other item in that Schedule has effect according to its terms.

Schedule 1—Exempting from income tax bonus payments made to certain older Australians

Income Tax Assessment Act 1997

1 Section 11‑15 (table item headed “social security or like payments”)

Before:

child care assistance ......................

52‑120

Insert:

bonus payments made to certain older Australians ...

Subdivision 52‑E

2 After subsection 36‑20(3)

Insert:

(3A) Excluded exempt income also includes exempt income to which section 52‑130 (about exempting bonus payments made to certain older Australians) applies.

3 After Subdivision 52‑D

Insert:

Subdivision 52‑E—Exempt payments under the A New Tax System (Bonuses for Older Australians) Act 1999

Table of sections

52‑130 Bonus payments made to certain older Australians are exempt

A payment made to you under the A New Tax System (Bonuses for Older Australians) Act 1999 is exempt from income tax.

Schedule 2—Abolition of the savings and investment income tax offset

Part 1—Amendment of the Income Tax Assessment Act 1997

1 Section 13‑1 (table item headed “eligible termination payments (ETPs)”)

Omit:

savings and investment income, payments included in...........

Subdivision 61‑A

2 Section 13‑1 (table item headed “savings and investment income”)

Repeal the item.

3 Section 13‑1 (table item headed “superannuation”)

Omit:

undeducted contributions..................................................

Subdivision 61‑A

4 Section 13‑1 (table item headed “superannuation”)

Omit “also”.

5 Subdivision 61‑A

Repeal the Subdivision, substitute:

[The next Subdivision is Subdivision 61‑G.]

6 Section 995‑1(1)(definition of savings and investment income)

Repeal the definition.

7 Application

The amendments made by this Part apply to assessments for the 1999‑2000 income year and later income years.

Part 2—Consequential amendments of the Income Tax Assessment Act 1936

8 Paragraph 221YAB(1)(b) (definition of Qualifying rebates)

Omit “of this Act and the tax offset under Subdivision 61‑A of the Income Tax Assessment Act 1997”.

9 Paragraph 221YDA(1)(da)

Omit “and the tax offset to which he or she will be entitled for that year of income under Subdivision 61‑A of the Income Tax Assessment Act 1997”.

10 Subparagraph 221YDA(2)(a)(ii)

Omit “and the tax offset under Subdivision 61‑A of the Income Tax Assessment Act 1997”.

11 Subparagraph 221YDA(2)(a)(ii)

Omit “and that tax offset”.

12 Application

The amendments made by this Part apply for the purposes of working out amounts of provisional tax (including instalments) payable for the 1999‑2000 income year and later income years.

Schedule 3—Increase in rebates for low income aged persons and certain pensioners

Income Tax Regulations

1 Regulation 150AA (definition of rebate amount)

Omit “subregulation 150AB(2)”, substitute “subregulations 150AB(2) and (2A)”.

2 Subregulation 150AB(1) (definition of rebate amount)

Omit “subregulation (2)”, substitute “subregulations (2) and (2A)”.

3 After subregulation 150AB(2)

Insert:

(2A) For this regulation, a taxpayer’s rebate amount for the 2000‑2001 year of income or a later year of income is increased:

(a) by $250 if, for at least one day during that income year, he or she would be treated as not being a member of a couple for the purposes of applying column 2 of item 1 of Table B in point 1064‑B1 of SSA91; or

(b) by $175 in any other case.

4 Subregulation 150AB(3) (definition of rebate amount)

Omit “subregulation (2)”, substitute “subregulations (2) and (2A)”.

5 Subregulation 151(2) (definition of Taxpayer’s rebate amount)

Omit “subregulation (3)”, substitute “subregulations (3) and (3A)”.

6 After subregulation 151(3)

Insert:

(3A) Subject to subregulation (5), for the purposes of this regulation, the Taxpayer’s rebate amount for the 2000‑2001 year of income or a later year of income is increased:

(a) by $250 if the taxpayer has received a single‑rate pension; or

(b) by $175 in any other case.

7 Subregulation 151(5)

Omit “subregulation (3)”, substitute “subregulations (3) and (3A)”.

8 Amendment or repeal of Income Tax Regulations

The amendment of the Income Tax Regulations by this Schedule does not prevent the amendment or repeal, by regulations, of the Income Tax Regulations as amended by this Schedule.

[Minister’s second reading speech made in—

House of Representatives on 2 December 1998

Senate on 10 December 1998]

(223/98)