Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT (RATES AND REBATES) ACT 1989No. 70, 1989 - SCHEDULE

SCHEDULE
Section 3 AMENDMENTS OF ACTS
Fringe Benefits Tax Act 1986 Section 6:
Repeal the section, substitute the following section: Rate of tax

"6. The rate of tax in respect of the fringe benefits taxable amount of an
employer of a year of tax is 47%.".
Income Tax Assessment Act 1936 After section 159H:
Insert the following section: Indexation of rebate amounts in sections 159J,
159K and 159L

"159HA. (1) Sections 159J, 159K and 159L apply in relation to an indexing year
of income as if each indexable amount were replaced by the amount calculated
using the formula:
Previous indexable amount X Indexation factor where:
Previous indexable amount is the indexable amount concerned for the previous
year of income;
Indexation factor is the indexation factor for the indexing year of income.

"(2) Where, apart from this subsection, an amount calculated under subsection
(1) would be an amount of dollars and cents:

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

   (b)  in any other case-the amount shall be rounded up to the nearest whole
        dollar.

"(3) The indexation factor for an indexing year of income is the number
(calculated to 3 decimal places) ascertained by dividing the sum of the index
numbers for the quarters of the 12 month period ending on 31 March immediately
before the indexing year of income by the sum of the index numbers for the
quarters of the preceding 12 month period ending on 31 March.

"(4) If the factor ascertained under subsection (3) in relation to an indexing
year of income would, if it were calculated to 4 decimal places, end with a
number greater than 4, the factor ascertained under that subsection in
relation to that indexing year of income shall be taken to be the factor
calculated to 3 decimal places and increased by 0.001.

"(5) Subject to subsection (6), if at any time, whether before or after the
commencement of this section, the Australian Statistician has published or
publishes an index number in respect of a quarter in substitution for an index
number previously published by the Australian Statistician in respect of that
quarter, the publication of the later index number shall be disregarded for
the purposes of this section.

"(6) If at any time, whether before or after the commencement of this section,
the Australian Statistician has changed or changes the reference base for the
Consumer Price Index, then, for the purposes of the application of this
section after the change took place or takes place, regard shall be had only
to the index numbers published in terms of the new reference base.

"(7) In this section:
'indexable amount' means:

   (a)  an amount specified in subsection 159J (1B) or (2) (other than the
        amounts specified in column 3 of the table in subsection 159J (2) in
        respect of a dependant included in class 3 or 4);

   (b)  an amount of $940 specified in section 159K; or

   (c)  an amount of $1,000 or $1,200 specified in section 159L;
or, if any such amount has previously been altered under this section, the
altered amount;
'indexation factor' means the indexation factor ascertained under subsection
(3);
'indexing year of income' means the year of income commencing on 1 July 1990
or a subsequent year of income;
'index number', in relation to a quarter, means the All Groups Consumer Price
Index number, being the weighted average of the 8 capital cities, published by
the Australian Statistician in respect of that quarter.". Subsection 159J
(1B):
Omit "$830" and "$1,030", substitute "$1,000" and "$1,200" respectively.
Subsection 159J (2):
Omit the table, substitute the following table:
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-- Column 1     Column 2                              Column 3

Class        Dependant                             Amounts of Rebate

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-- 1            Spouse of the taxpayer .............. $1,000

2            Daughter-housekeeper  ............... $1,000

3            Child less than 16 years of age (not

             being a student)                      In respect of 1 such

child-$376
In respect of each other such child-$282
4            Student  ............................ $376

5            Invalid relative  ................... $450

Parent of the taxpayer or of the
             taxpayer's spouse                     $900
Section 159K:
Omit "$780" (wherever occurring), substitute "$940". Paragraph 159L (2) (a):
Omit "$1,030", substitute "$1,200". Paragraph 159L (2) (b):
Omit "$830", substitute "$1,000". After section 221YCA:
Insert the following section: Reduction of amount of instalment of provisional
tax

"221YCB. (1) The Commissioner may, having regard to laws relating to taxation
that:

   (a)  have been enacted, or, in the opinion of the Commissioner, are likely
        to be enacted, by the Parliament; and

   (b)  alter, or, in the opinion of the Commissioner, are likely to alter,
        the amount of income tax which a taxpayer is liable to pay in respect
        of income of a year of income; determine that the amount that, apart
        from this subsection and subsection 221YBA (4), would be payable by
        the taxpayer as an instalment of provisional tax for the year of
        income shall be reduced by such amount as the Commissioner thinks
        appropriate.

"(2) Nothing in this section limits the Commissioner's powers under section
221YDC or 221YG.".
Income Tax (Bearer Debentures) Act 1971 Paragraph 6 (b):
Omit the paragraph, substitute the following paragraph:

"(b) in any other case-47%.".
Income Tax Rates Act 1986 Division 2 of Part II:
Repeal the Division. Heading to Division 3 of Part II:
Omit the heading, substitute the following heading:

"Division 3-Rates of Tax". Subdivision A of Division 3 of Part II:
Repeal the Subdivision. Section 12:
Omit "49%" (wherever occurring), substitute "47%". Section 13:
Omit "$1,615" (wherever occurring), substitute "$1,445". Paragraph 14 (2) (c):
Omit "$800", substitute "$717". Section 15:
Omit "$905" (wherever occurring), substitute "$810". Subsection 20 (1):
Omit from and including "income as if-" to the end of paragraph (b),
substitute "income as if the reference in the table in Part I of Schedule 7 to
$5,100". Subsection 20 (1):
Omit the definition of component A, substitute the following definition:

"A is $425;". Subsection 20 (2):
Omit from and including "share as if-" to the end of paragraph (b), substitute
"share as if the reference in the table in Part I of Schedule 7 to $5,100".
Subsection 20 (2):
Omit the definition of component A, substitute the following definition:

"A is $425;". Schedules 1 to 6 (inclusive):
Repeal the Schedules. Heading to Schedules 7 to 12 (inclusive):
Omit "-FINANCIAL YEAR 1987-88 AND SUBSEQUENT FINANCIAL YEARS". Table in Part I
of Schedule 7:
Omit the table, substitute the following table:
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-- Column 1 Column 2 Parts of taxable income % rate
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-- The part of the taxable income that:
exceeds $5,100 but does not exceed $17,650 .................... 21% exceeds
$17,650 but does not exceed $20,600 ................... 29% exceeds $20,600
but does not exceed $35,000 ................... 39% exceeds $35,000
............................................... 47%
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-- Table in Part II of Schedule 7:
Omit the table, substitute the following table:
------------------------------------------------------------------------------
-- Column 1 Column 2 Parts of taxable income % rate
------------------------------------------------------------------------------
-- The part of the taxable income that:
does not exceed $20,600 ....................................... 29% exceeds
$20,600 but does not exceed $35,000 ................... 39% exceeds $35,000
............................................... 47%
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-- Subparagraph 2 (b) (ii) of Division 2 of Part I of Schedule 8:
Omit "$12,600" (wherever occurring), substitute "$17,650". Paragraph 2 (b) of
Part I of Schedule 10:
Omit "$12,600" (wherever occurring), substitute "$17,650". Schedules 11 and
12:
Omit "49%" (wherever occurring), substitute "47%".
Trust Recoupment Tax Act 1985 Paragraph 5 (a):
Omit "49%", substitute "47%".
Trust Recoupment Tax Assessment Act 1985 Subsection 6 (3):
Omit "2.04", substitute "2.12".