TAX BONUS FOR WORKING AUSTRALIANS BILL (NO. 2) 2009

i Tax Bonus for Working Australians Bill (No. 2) 2009 No. , 2009

Contents

Short title ........................................................................................... 1

Commencement ................................................................................. 1

General administration of Act ........................................................... 2

Definitions ......................................................................................... 2

Entitlement to tax bonus .................................................................... 3

Amount of tax bonus ......................................................................... 4

Payment of tax bonus ........................................................................ 4

Overpayments etc. ............................................................................. 5

General interest charge on overpayment debts .................................. 5

Tax Bonus for Working Australians Bill (No. 2) 2009 No. , 2009 1

A Bill for an Act to provide for a tax bonus, and for

related purposes

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Tax Bonus for Working Australians

Act (No. 2) 2009.

2 Commencement

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

Assent.

Section 3

2 Tax Bonus for Working Australians Bill (No. 2) 2009 No. , 2009

3 General administration of Act

The Commissioner has the general administration of this Act.

4 Definitions

(1) In this Act:

adjusted tax liability has the meaning given by subsection (2).

assessable income has the meaning given by the Income Tax

Assessment Act 1997.

Australian resident has the meaning given by the Income Tax

Assessment Act 1997.

basic income tax liability means basic income tax liability worked

out in accordance with step 2 of the method statement in

subsection 4-10(3) of the Income Tax Assessment Act 1997.

Commissioner means the Commissioner of Taxation.

excepted assessable income has the same meaning as in

section 102AE of the Income Tax Assessment Act 1936.

excepted person has the same meaning as in section 102AC of the

Income Tax Assessment Act 1936.

general interest charge means the charge worked out under

Part IIA of the Taxation Administration Act 1953.

income tax return has the meaning given by the Income Tax

Assessment Act 1997.

income year has the meaning given by the Income Tax Assessment

Act 1997.

Medicare levy means the Medicare levy imposed by the Medicare

Levy Act 1986.

Medicare levy surcharge has the meaning given by the Income Tax

Assessment Act 1997.

Section 5

Tax Bonus for Working Australians Bill (No. 2) 2009 No. , 2009 3

prescribed person has the same meaning as in section 102AC of

the Income Tax Assessment Act 1936.

taxable income has the meaning given by the Income Tax

Assessment Act 1997.

tax bonus has the meaning given by subsection 5(1).

tax offset has the meaning given by the Income Tax Assessment

Act 1997.

(2) Work out a person's adjusted tax liability for an income year as

follows:

(a) firstly, work out the sum of the following:

(i) the person's basic income tax liability for that income

year;

(ii) the person's Medicare levy (if any) for that income year;

(iii) the person's Medicare levy surcharge (if any) for that

income year;

(b) next, reduce the amount worked out under paragraph (a) by

the sum of the person's tax offsets (if any) for that income

year.

5 Entitlement to tax bonus

(1) A person is entitled to a payment (known as the tax bonus) for the

2007-08 income year if:

(a) the person is an individual; and

(b) the person is an Australian resident for that income year; and

greater than nil; and

(d) the person's taxable income for that income year does not

exceed $100,000; and

(e) the person lodges his or her income tax return for that income

year no later than:

(i) unless subparagraph (ii) applies--30 June 2009; or

(ii) if, before the commencement of this Act, the

Commissioner deferred the time for lodgment of the

return under section 388-55 in Schedule 1 to the

Section 6

4 Tax Bonus for Working Australians Bill (No. 2) 2009 No. , 2009

Taxation Administration Act 1953 to a day later than

30 June 2009--that later day.

Exception for persons aged under 18 without employment income

etc.

(2) However, the person is not entitled to the tax bonus for the

2007-08 income year if:

(a) he or she is a prescribed person in relation to that income

year and is not an excepted person in relation to that income

year; and

(b) his or her assessable income for the income year does not

include excepted assessable income.

6 Amount of tax bonus

If a person is entitled to the tax bonus for the 2007-08 income year,

the amount of his or her tax bonus is:

(a) if the person's taxable income for that income year does not

exceed $80,000--$900; or

(b) if the person's taxable income for that income year exceeds

$80,000 but does not exceed $90,000--$600; or

$90,000 but does not exceed $100,000--$250.

7 Payment of tax bonus

(1) If the Commissioner is satisfied that a person is entitled to the tax

bonus for the 2007-08 income year, the Commissioner must pay

the person his or her tax bonus as soon as practicable after

becoming so satisfied.

(2) The Commissioner must pay the tax bonus to the credit of a

financial institution account nominated in the person's income tax

return for the 2007-08 income year for the purposes of

section 8AAZLF of the Taxation Administration Act 1953.

(3) However, the Commissioner may direct that the tax bonus be paid

to the person in a different way.

Section 8

Tax Bonus for Working Australians Bill (No. 2) 2009 No. , 2009 5

(4) If the person has not nominated a financial institution account as

mentioned in subsection (2) and the Commissioner has not directed

that the tax bonus be paid in a different way, the Commissioner is

not obliged to pay the tax bonus to the person until the person does

so.

(5) If the Commissioner pays a tax bonus to the credit of an account

nominated by a person, the Commissioner is taken to have paid the

tax bonus to the person.

8 Overpayments etc.

(1) This section applies if:

(a) the Commissioner pays an amount by way of a tax bonus for

a person; and

(b) either:

(i) the person was not entitled to the tax bonus; or

(ii) the amount paid is more than the correct amount of the

person's tax bonus.

(2) The person is liable to repay the following amount to the

Commonwealth:

(a) if the person was not entitled to the tax bonus--the whole of

the amount referred to in paragraph (1)(a);

(b) if the amount paid is more than the correct amount of the tax

bonus--the amount by which the amount paid exceeds the

correct amount.

(3) An amount that a person is liable to repay under subsection (2) is

due and payable 28 days after the day on which the Commissioner

gives him or her a notice in writing of the liability.

9 General interest charge on overpayment debts

(1) If:

(a) a person is liable under subsection 8(2) to repay an amount;

and

(b) the whole or a part of the amount remains unpaid after the

time by which the amount is due to be paid;

Section 9

6 Tax Bonus for Working Australians Bill (No. 2) 2009 No. , 2009

the person is liable to pay general interest charge on the unpaid

amount.

(2) A person who is liable under this section to pay general interest

charge on an unpaid amount is liable to pay the charge for each day

in the period that:

(a) started at the beginning of the day by which the unpaid

amount was due to be paid; and

(b) finishes at the end of the last day at the end of which any of

the following remains unpaid:

(i) the unpaid amount;

(ii) general interest charge on any of the unpaid amount.

Commonwealth of Australia Bills

TAX BONUS FOR WORKING AUSTRALIANS BILL (NO. 2) 2009