2008-2009 The Parliament of the Commonwealth of Australia HOUSE OF REPRESENTATIVES Presented and read a first time Fairer Private Health Insurance Incentives (Medicare Levy Surcharge-- Fringe Benefits) Bill 2009 No. , 2009 (Treasury) A Bill for an Act to amend the A New Tax System (Medicare Levy Surcharge--Fringe Benefits) Act 1999, and for related purposes [Page Break] 1 Short title ............................................................................................ 1 2 Commencement .................................................................................. 1 3 Schedule(s) ......................................................................................... 2 Schedule 1--Amendme nts 3 A New Tax System (Medicare Levy Surcharge--Fringe Benefits) Act 1999 3 i Fairer Private Health Insurance Incentives (Medicare Levy Surcharge--Fringe Benefits) Bill 2009 No. , 2009 [Page Break] 2 (Medicare Levy Surcharge--Fringe Benefits) Act 3 1999, and for related purposes 4 The Parliament of Australia enacts: 5 1 Short title 6 This Act may be cited as the Fairer Private Health Insurance 7 Incentives (Medicare Levy Surcharge--Fringe Benefits) Act 2009. 8 2 Commence ment 9 (1) Each provision of this Act specified in column 1 of the table 10 commences, or is taken to have commenced, in accordance with 11 column 2 of the table. Any other statement in column 2 has effect 12 according to its terms. 13 Fairer Private Health Insurance Incentives (Medicare Levy Surcharge--Fringe Benefits) Bill 2009 No. , 2009 1 [Page Break] Column 1 Column 2 Column 3 Provision(s) Commencement Date/Details 1. Sections 1 to 3 The day on which this Act receives the and anything in Royal Assent. this Act not elsewhere covered by this table 2. Schedule 1 Immediately after the commencement of Schedule 1 to the Fairer Private Health Insurance Incentives Act 2009. 1 Note: This table relates only to the provisions of this Act as originally 2 passed by both Houses of the Parliament and assented to. It will not be 3 expanded to deal with provisions inserted in this Act after assent. 4 (2) Column 3 of the table contains additional information that is not 5 part of this Act. Information in this column may be added to or 6 edited in any published version of this Act. 7 3 Schedule(s) 8 Each Act that is specified in a Schedule to this Act is amended or 9 repealed as set out in the applicable items in the Schedule 10 concerned, and any other item in a Schedule to this Act has effect 11 according to its terms. 12 2 Fairer Private Health Insurance Incentives (Medicare Levy Surcharge--Fringe Benefits) Bill 2009 No. , 2009 [Page Break] 1 Schedule 1--Amendments 2 3 A New Tax System (Medicare Levy Surcharge--Fringe 4 Benefits) Act 1999 5 1 Subsection 3(1) 6 Insert: 7 family tier 1 threshold has the same meaning as in the Income Tax 8 Assessment Act 1997. 9 2 Subsection 3(1) (definition of family surcharge threshold) 10 Repeal the definition. 11 3 Subsection 3(1) (definition of singles surcharge threshold) 12 Repeal the definition. 13 4 Subsection 3(1) 14 Insert: 15 singles tier 1 threshold has the same meaning as in the Income Tax 16 Assessment Act 1997. 17 5 Subsection 3(1) 18 Insert: 19 tier 2 earner has the meaning given by section 6. 20 6 Subsection 3(1) 21 Insert: 22 tier 3 earner has the meaning given by section 6. 23 7 Sections 5A and 6 24 Repeal the sections, substitute: 25 6 What is a tier 2 earner and tier 3 earner 26 (1) Subject to this section, for the purposes of this Act: Fairer Private Health Insurance Incentives (Medicare Levy Surcharge--Fringe Benefits) Bill 2009 No. , 2009 3 [Page Break] 1 (a) tier 2 earner has the same meaning as in the Income Tax 2 Assessment Act 1997; and 3 (b) tier 3 earner has the same meaning as in that Act. 4 (2) In determining whether a person is a tier 2 earner or tier 3 earner 5 for a year of income for the purposes of this Act, section 61-225 of 6 the Income Tax Assessment Act 1997 operates with the 7 modification set out in subsection (3). 8 (3) Replace paragraph 61-225(1)(b) of the Income Tax Assessment Act 9 1997 with the following paragraph: 10 (b) on any day in the year, you have one or more dependants 11 (within the meaning of the A New Tax System (Medicare 12 Levy Surcharge--Fringe Benefits) Act 1999), other than a 13 dependant to whom you are married (within the meaning of 14 that Act): 15 8 Paragraph 12(1)(a) 16 Omit "the singles surcharge threshold", substitute "the person's singles 17 tier 1 threshold". 18 9 At the end of section 12 19 Add: 20 (4) Increase the amount of each percentage mentioned in 21 subsections (2) and (3) by 0.25 of a percentage point if the person 22 is a tier 2 earner for the year of income. 23 (5) Increase the amount of each percentage mentioned in 24 subsections (2) and (3) by 0.5 of a percentage point if the person is 25 a tier 3 earner for the year of income. 26 10 Paragraph 13(1)(a) 27 Omit "family surcharge threshold", substitute "family tier 1 threshold". 28 11 At the end of section 13 29 Add: 30 (5) Increase the amount of each percentage mentioned in 31 subsections (3) and (4) by 0.25 of a percentage point if the person 32 is a tier 2 earner for the year of income. 4 Fairer Private Health Insurance Incentives (Medicare Levy Surcharge--Fringe Benefits) Bill 2009 No. , 2009 [Page Break] 1 (6) Increase the amount of each percentage mentioned in 2 subsections (3) and (4) by 0.5 of a percentage point if the person is 3 a tier 3 earner for the year of income. 4 12 Paragraph 15(1)(b) 5 Omit "family surcharge threshold", substitute "family tier 1 threshold". 6 13 At the end of section 15 7 Add: 8 (3) Increase the amount of the percentage mentioned in subsection (1) 9 by 0.25 of a percentage point if the person is a tier 2 earner for the 10 year of income. 11 (4) Increase the amount of the percentage mentioned in subsection (1) 12 by 0.5 of a percentage point if the person is a tier 3 earner for the 13 year of income. 14 14 Paragraph 16(2)(b) 15 Omit "family surcharge threshold", substitute "family tier 1 threshold". 16 15 Paragraph 16(3)(b) 17 Omit "family surcharge threshold", substitute "family tier 1 threshold". 18 16 After subsection 16(4) 19 Insert: 20 (4A) Increase the amount of the percentage mentioned in subsection (4) 21 by 0.25 of a percentage point if the person is a tier 2 earner for the 22 year of income. 23 (4B) Increase the amount of the percentage mentioned in subsection (4) 24 by 0.5 of a percentage point if the person is a tier 3 earner for the 25 year of income. 26 17 Application 27 The amendments made by this Schedule apply to the 2010-11 year of 28 income and later years of income. Fairer Private Health Insurance Incentives (Medicare Levy Surcharge--Fringe Benefits) Bill 2009 No. , 2009 5