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This is a Bill, not an Act. For current law, see the Acts databases.

MEDICARE LEVY AMENDMENT (DEFENCE--EAST TIMOR LEVY) BILL 2000

1998-1999-2000

The Parliament of the
Commonwealth of Australia

HOUSE OF REPRESENTATIVES




Presented and read a first time









Medicare Levy Amendment (Defence—East Timor Levy) Bill 2000

No. , 2000

(Treasury)



A Bill for an Act to amend the law relating to Medicare levy, and for related purposes




ISBN: 0642 428549

Contents

Medicare Levy Act 1986 3

Income Tax Assessment Act 1936 6

Medicare Levy Act 1986 8

Income Tax Assessment Act 1936 8

A Bill for an Act to amend the law relating to Medicare levy, and for related purposes

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Medicare Levy Amendment (Defence—East Timor Levy) Act 2000.

2 Commencement

(1) Subject to subsection (2), this Act commences, or is taken to have commenced, on 1 July 2000 at the same time as Schedule 8 to the A New Tax System (Family Assistance) (Consequential and Related Measures) Act (No. 1) 1999.

(2) Schedule 2 commences on 1 July 2001.

3 Schedule(s)

Subject to section 2, each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

4 Amendment of assessments

Section 170 of the Income Tax Assessment Act 1936 does not prevent the amendment of an assessment made before the commencement of this section for the purposes of giving effect to this Act.

Schedule 1—Levy increase for 2000-01


Medicare Levy Act 1986

1 After section 8G

Insert:

8H Levy increase for 2000-01 for defence and East Timor

Individuals

(1) The amount of levy that would have been payable under this Act apart from this section by a person for the 2000-01 year of income is increased by the amount worked out under an item of the table if the person’s taxable income for that year is in the range shown in the item.


Levy increase for 2000-01 for defence and East Timor

Item

If taxable income is in the range:

The amount of the levy increase is:

1

$50,001-$51,282 (inclusive)

20% of the amount by which the taxable income exceeds $50,000

2

$51,283-$100,000 (inclusive)

0.5% of taxable income

3

$100,001-$102,564 (inclusive)

The sum of:
(a) 0.5% of taxable income; and
(b) 20% of the amount by which the taxable income exceeds $100,000

4

More than $102,564

1% of taxable income

Exemption for persons with many children or student dependants

(2) However, subsection (1) does not increase the amount of levy payable by the person if:

(a) the person is covered by paragraph 8(2)(a), (b), (c) or (d) in relation to that year of income; and

(b) the person’s family income worked out under section 8 is:

(i) $100,000 or less; and

(ii) less than or equal to the amount (the Defence—East Timor levy threshold) worked out for the person under subsection (3).

Note 1: Paragraphs 8(2)(a), (b), (c) and (d) cover:

(a) persons who are married at the end of the year of income; and

(b) persons who would be entitled to a child-housekeeper rebate or housekeeper rebate if they did not get family tax benefit; and

(c) persons who would be entitled to a sole parent rebate apart from the bar on payment of that rebate for that year.

Note 2: Subsection (2) has the effect that the levy increase under subsection (1) will not apply to a person if:

(a) he or she does not need to pay levy because of subsection 8(1); or

(b) the amount of levy the person needs to pay is reduced because of subsection 8(2).

How much is a person’s Defence—East Timor levy threshold?

(3) A person’s Defence—East Timor levy threshold is worked out by:

(a) dividing the person’s family income threshold worked out under section 8 by 0.925; and

(b) if the result is not a whole number of dollars, rounding the result down to the nearest whole dollar.

Trustees assessed under the Assessment Act

(4) The amount of levy that would have been payable under this Act apart from this section by a trustee liable to be assessed under section 98, 99 or 99A of the Assessment Act on an amount (the assessment amount) of the trust estate’s net income for the 2000-01 year of income is increased by the amount worked out under an item of the table if the assessment amount is in the range shown in the item.


Levy increase for 2000-01 for defence and East Timor

Item

If the assessment amount is in the range:

The amount of the levy increase is:

1

$50,001-$51,282 (inclusive)

20% of the excess of the assessment amount over $50,000

2

$51,283-$100,000 (inclusive)

0.5% of the assessment amount

3

$100,001-$102,564 (inclusive)

The sum of:
(a) 0.5% of the assessment amount; and
(b) 20% of the excess of the assessment amount over $100,000

4

More than $102,564

1% of the assessment amount

Amounts on which trustee is to be assessed

(5) Subsection (4) operates as if each of the following were a separate amount on which the trustee is liable to be assessed:

(a) a share of the trust estate’s net income to which a beneficiary is presently entitled and on which the trustee is liable to be assessed under section 98 of the Assessment Act;

(b) a part of the trust estate’s net income on which the trustee is liable to be assessed under section 99 or 99A of the Assessment Act;

(c) the whole of the trust estate’s net income on which the trustee is liable to be assessed under section 99 or 99A of the Assessment Act.

Amount of levy payable may be increased by this section from nil

(6) To avoid doubt, an amount of levy worked out under this section for a person or a trustee is payable even if no levy would have been payable by the person or trustee apart from this section. This does not affect the operation of section 9 or 10 of this Act or section 251T of the Assessment Act in relation to the amount.

Section 10 operates in relation to this section

(7) To avoid doubt, section 10 operates according to its terms in relation to an amount of levy payable by a trustee because of subsection (4) of this section.

Note: This means a trustee assessed on a beneficiary’s share of the trust estate’s net income gets the benefit of subsection (2) if that subsection would stop the levy increase under subsection (1) for the beneficiary, assuming the beneficiary had a taxable income equal to that share.

2 At the end of section 9

Add:

(2) In applying subsection (1) in relation to an amount of levy payable under section 8H, disregard each part (if any) of the 2000-01 year of income for which a person was a prescribed person solely because of paragraph 251U(1)(a) of the Assessment Act.

Note: Paragraph 251U(1)(a) of the Assessment Act provides that certain Defence Force members and relatives entitled to free medical treatment are prescribed persons.

3 Application

The amendments of the Medicare Levy Act 1986 made by this Schedule apply for the financial year commencing on 1 July 2000.

Income Tax Assessment Act 1936

4 At the end of section 251T

Add:

(2) Paragraph (1)(a) does not relieve from liability to pay an amount of Medicare levy worked out under section 8H of the Medicare Levy Act 1986 a person who was a prescribed person for all of the 2000-01 year of income solely because the person was a prescribed person under paragraph 251U(1)(a) for all or part of that year.

Note 1: Section 8H of the Medicare Levy Act 1986 provides for a levy increase for 2000-01 for defence and East Timor.

Note 2: Paragraph 251U(1)(a) provides that certain Defence Force members and relatives entitled to free medical treatment are prescribed persons.

Note 3: Section 9 of the Medicare Levy Act 1986 reduces the amount of levy worked out under section 8H of that Act if the person was a prescribed person for some of the year because of a provision of section 251U of this Act other than paragraph 251U(1)(a).

(3) Paragraph (1)(c) does not relieve the trustee from liability to pay an amount of Medicare levy worked out under section 8H of the Medicare Levy Act 1986 if the beneficiary was a prescribed person for all of the 2000-01 year of income solely because he or she was a prescribed person under paragraph 251U(1)(a) for all or part of that year.

Note: Sections 9 and 10 of the Medicare Levy Act 1986 may reduce the amount of levy payable by the trustee because of section 8H of that Act if the beneficiary was a prescribed person for some of the year because of a provision of section 251U of this Act other than paragraph 251U(1)(a).

(4) Subsections (2) and (3) have effect despite subsection (1).

Schedule 2—Repeal of provisions increasing levy


Medicare Levy Act 1986

1 Section 8H

Repeal the section.

2 Subsection 9(2)

Repeal the subsection.

3 Application

The amendments of the Medicare Levy Act 1986 made by this Schedule apply for the financial year commencing on 1 July 2001 and for all later financial years.

Income Tax Assessment Act 1936

4 Subsections 251T(2), (3) and (4)

Repeal the subsections.

5 Application

The amendment of the Income Tax Assessment Act 1936 made by this Schedule applies for the financial year commencing on 1 July 2001 and for all later financial years.

 

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