1996-97
   The Parliament of the
   Commonwealth of Australia
   HOUSE OF REPRESENTATIVES
   Presented and read a first time
   Termination Payments Surcharge Imposition Bill 1997
   No. , 1997
   (Treasury)
   A Bill for an Act to impose a termination payments surcharge and to
   declare the rate of the surcharge

   9701220--1,550/11.2.1997--(12/97) CAt. No. 96 5898 X ISBN 0644 496614

   Contents

   A Bill for an Act to impose a termination payments surcharge and to
   declare the rate of the surcharge

   The Parliament of Australia enacts:

      1 Short title

   This Act may be cited as the Termination Payments Surcharge Imposition
   Act 1997.

      2 Commencement

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

      3 Interpretation

   Expressions used in this Act that are defined by the Termination
   Payments Surcharge (Assessment and Collection) Act 1997 have the same
   meanings as in that Act.

      4 Imposition of termination payments surcharge

   The termination payments surcharge that is payable on a termination
   payment made to or for a taxpayer under the Termination Payments
   Surcharge (Assessment and Collection) Act 1997 is imposed by this Act.

      5 Rate of termination payments surcharge

   (1) If the taxpayer's adjusted taxable income for a financial year
   (relevant adjusted taxable income) is not less than $70,000 but is less
   than $85,000, the rate of the termination payments surcharge payable on
   a termination payment made to or for the taxpayer in that year is the
   percentage of the amount of the payment worked out using the formula:
   [7tpsi0h100.jpg ]

   (2) If the taxpayer's adjusted taxable income for a financial year is
   $85,000 or a higher amount, the rate of the termination payments
   surcharge payable in respect of a termination payment made to or for
   the taxpayer in that year is 15% of the amount of the payment.

      6 Indexation

   Indexation of certain amounts for 1997-98 financial year and later
   financial years

   (1) Section 5 applies in relation to an indexing financial year as if
   each indexable amount were replaced by the amount worked out using the
   formula:
   [7tpsi0h101.jpg ]

   where:

   previous indexable amount means the indexable amount for the financial
   year immediately before the indexing financial year.

   relevant indexation factor means the indexation factor for the indexing
   financial year.

   Rounding off of indexed amounts

   (2) If an amount worked out under subsection (1) is an amount of
   dollars and cents:

   (a) if the number of cents is less than 50--the amount is to be rounded
   down to the nearest whole dollar; or

   (b) otherwise--the amount is to be rounded up to the nearest whole
   dollar.

   Indexation factor

   (3) The indexation factor for an indexing financial year is the number
   calculated, to 3 decimal places, using the formula:
   [7tpsi0h102.jpg ]

   where:

   current March year means the period of 12 months ending on 31 March
   immediately before the indexing financial year.

   previous March year means the period of 12 months immediately before
   the current March year.

   Rounding up of indexation factor

   (4) If the number calculated under subsection (3) for a financial year
   would, if it were worked out to 4 decimal places, end with a number
   greater than 4, the number so calculated is increased by 0.001.

   Change in index numbers

   (5) If, at any time, whether before or after the commencement of this
   Act, the Australian Statistician has published or publishes an index
   number for a quarter in substitution for an index number previously
   published for the quarter, the publication of the later index number is
   to be disregarded.

   Indexable amounts to be published

   (6) The Commissioner must publish before, or as soon as practicable
   after, the start of the 1997-98 financial year, and before the start of
   each later financial year, the indexable amounts as replaced under
   subsection (1) for that year.

   Definitions

   (7) In this section:

   indexable amount means:

   (a) an amount stated in section 5; or

   (b) if that amount has previously been altered under this section--the
   altered amount.

   indexing financial year means the 1997-98 financial year or a later
   financial year.

   index number, for a quarter, means the estimate of full-time adult
   average weekly ordinary time earnings for the middle month of the
   quarter published by the Australian Statistician.

   Note: For the purposes of this section, Australian Statistician means
   the Australian Statistician referred to in subsection 5(2) of the
   Australian Bureau of Statistics Act 1975.