2004-2005-2006-2007

The Parliament of the
Commonwealth of Australia

HOUSE OF REPRESENTATIVES



Presented and read a first time




Tax Laws Amendment (Personal Income
Tax Reduction) Bill 2007
No.           , 2007
(Treasury)




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


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             1       Short title ........................................................................................... 1
             2       Commencement ................................................................................. 1
             3       Schedule(s) ........................................................................................ 1

Schedule 1--Amendments                                                                                                      3

   Part 1--Amendments having effect from the 2007-08 year of
           income                                                                                                           3
       Income Tax Assessment Act 1936                                                                                       3
       Income Tax Rates Act 1986                                                                                            3
       Medicare Levy Act 1986                                                                                               3

   Part 2--Amendments having effect from the 2008-09 year of
           income                                                                                                           5
       Income Tax Rates Act 1986                                                                                            5


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2    taxation, and for related purposes
3    The Parliament of Australia enacts:
4    1 Short title
5                This Act may be cited as the Tax Laws Amendment (Personal
6                Income Tax Reduction) Act 2007.

7    2 Commencement
8                This Act commences on the day on which it receives the Royal
9                Assent.

10   3 Schedule(s)
11               Each Act that is specified in a Schedule to this Act is amended or
12               repealed as set out in the applicable items in the Schedule



           Tax Laws Amendment (Personal Income Tax Reduction) Bill 2007   No.   , 2007   1


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2   according to its terms.


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2    Schedule 1--Amendments
3    Part 1--Amendments having effect from the 2007-08
4            year of income

5    Income Tax Assessment Act 1936
6    1 Subsection 159N(1)
7          Omit "$40,000", substitute "$48,750".

8    2 Subsection 159N(2)
9          Omit "$600", substitute "$750".

10   3 Subsection 159N(2)
11         Omit "$25,000", substitute "$30,000".

12   Income Tax Rates Act 1986
13   4 Clause 1 of Part I of Schedule 7 (table items 1 and 2)
14         Omit "$25,000", substitute "$30,000".

15   5 Clause 1 of Part II of Schedule 7 (table items 1 and 2)
16         Omit "$25,000", substitute "$30,000".

17   6 Subparagraph 2(b)(ii) of Division 2 of Part I of Schedule 8
18         Omit "$25,000" (wherever occurring), substitute "$30,000".

19   7 Paragraph 2(b) of Part I of Schedule 10
20         Omit "$25,000" (wherever occurring), substitute "$30,000".

21   Medicare Levy Act 1986
22   8 Subsection 3(1) (paragraph (a) of the definition of phase-in
23        limit)
24         Omit "$29,255", substitute "$30,431".


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2        amount)
3         Omit "$24,867", substitute "$25,867".

4   10 Subsection 8(7)
5         Omit "$33,500", substitute "$37,950".

6   11 Application
7         The amendments made by this Part apply to assessments for the
8         2007-08 year of income and later years of income.


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2    Part 2--Amendments having effect from the 2008-09
3            year of income

4    Income Tax Rates Act 1986
5    12 Clause 1 of Part I of Schedule 7 (table items 2 and 3)
6          Omit "$75,000", substitute "$80,000".

7    13 Clause 1 of Part I of Schedule 7 (table items 3 and 4)
8          Omit "$150,000", substitute "$180,000".

 9   14 Clause 1 of Part II of Schedule 7 (table items 2 and 3)
10         Omit "$75,000", substitute "$80,000".

11   15 Clause 1 of Part II of Schedule 7 (table items 3 and 4)
12         Omit "$150,000", substitute "$180,000".

13   16 Application
14         The amendments made by this Part apply to assessments for the
15         2008-09 year of income and later years of income.