A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Amendment Act 2000

No. 53, 2000

An Act to amend the A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999, and for related purposes

[Assented to 30 May 2000]

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Amendment Act 2000.

2 Commencement

This Act commences on the day on which it receives the Royal Assent.

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Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999

1 Subsections 11(2) and (3)

Repeal the subsections.

2 At the end of section 15

Add:

Special rule if person’s spouse is a presently entitled beneficiary in a trust estate

(2) In working out whether subsection (1) applies to a person whose spouse is a beneficiary presently entitled to a share in the net income of a trust estate in respect of which the trustee is liable to be assessed under section 98 of the Assessment Act, assume that:

(a) the spouse’s taxable income included that share; and

(b) subsection 271‑105(1) in Schedule 2F to that Act did not apply in working out the net income of the trust estate.

Note: Insert before subsection 15(1) the heading “When this section applies”.

3 Paragraph 16(3)(b)

Omit “$13,389”, substitute “the family surcharge threshold”.

4 Subsection 16(5)

Repeal the subsection, substitute:

Special rule if person’s spouse is a presently entitled beneficiary in a trust estate

(5) In working out whether subsection (2) applies to a person whose spouse is a beneficiary presently entitled to a share in the net income of a trust estate in respect of which the trustee is liable to be assessed under section 98 of the Assessment Act, assume that:

(a) the spouse’s taxable income included that share; and

(b) subsection 271‑105(1) in Schedule 2F to that Act did not apply in working out the net income of the trust estate.

5 Application

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

[Minister’s second reading speech made in—

House of Representatives on 9 March 2000

Senate on 3 April 2000]

(30/00)