Commonwealth Numbered Acts

A NEW TAX SYSTEM (FRINGE BENEFITS REPORTING) ACT 1999 - SCHEDULE 3--Effect

Higher Education Funding Act 1988

1 Subsection 106H(1) (definition of HEC repayment income of a person )

Repeal the definition.

2 Subsection 106H(1)

Insert:

HEC repayment income of a person means:

(a) in relation to the year of income ending on 30 June 1996 or any preceding year of income--an amount equal to the taxable income of the person in respect of that year; and

(b) in relation to the year of income ending on 30 June 1997--the sum of:

(i) the taxable income of the person in respect of that year; and

(ii) if, in respect of that year of income, a deduction has been allowed from the assessable income of the person under section 51 of the Income Tax Assessment Act 1936 for interest on money borrowed by the person to finance rental property investments and that deduction or, if another deduction has been allowed (otherwise than for interest on money borrowed) from the assessable income of the person under that Act in respect of the rental property investments, the total of those deductions exceeds the rental income of the person--the amount of the excess; and

(c) in relation to the 1997-98 or 1998-99 year of income--the sum of:

(i) the person's taxable income for that year of income; and

(ii) if the person has deducted under section 8-1 of the Income Tax Assessment Act 1997 for that year of income an amount for interest on money the person borrowed to finance rental property investments, and the total of that amount and any other amounts the person has deducted under that Act or the Income Tax Assessment Act 1936 (otherwise than for interest on money borrowed) in respect of the rental property exceeds the rental income of the person--the amount of the excess; and

(d) in relation to the 1999-2000 year of income or any later year of income--the sum of:

(i) the person's taxable income for that year of income; and

(ii) if the person has deducted under section 8-1 of the Income Tax Assessment Act 1997 for that year of income an amount for interest on money the person borrowed to finance rental property investments, and the total of that amount and any other amounts the person has deducted under that Act or the Income Tax Assessment Act 1936 (otherwise than for interest on money borrowed) in respect of the rental property exceeds the rental income of the person--the amount of the excess; and

(iii) if the person is an employee (within the meaning of the Fringe Benefits Tax Assessment Act 1986 ) who has a reportable fringe benefits total (as defined in that Act) for the year of income--the reportable fringe benefits total for the year of income.