Commonwealth Consolidated Acts

INCOME TAX RATES ACT 1986 - SECT 12A

             (1)  This section sets the rate of extra income tax payable under subsection 392‑35(3) of the Income Tax Assessment Act 1997 on every dollar of a taxpayer's averaging component for a year of income.

             (2)  The rate is worked out using the formula:

Rate if taxable income is less than tax‑free threshold adjusted by family tax assistance

             (6)  In this section:

"averaging adjustment" means the taxpayer's smoothing adjustment, worked out for the year of income under section 392-75 of the Income Tax Assessment Act 1997 .

"averaging component" means the taxpayer's averaging component in whole dollars, worked out for the year of income under Subdivision 392-C of the Income Tax Assessment Act 1997 .