[pic] A New Tax System (Medicare Levy Surcharge-Fringe Benefits) Act 1999 Act No. 18 of 1999 as amended This compilation was prepared on 23 May 2012 taking into account amendments up to Act No. 28 of 2012 The text of any of those amendments not in force on that date is appended in the Notes section The operation of amendments that have been incorporated may be affected by application provisions that are set out in the Notes section Prepared by the Office of Legislative Drafting and Publishing, Attorney-General's Department, Canberra Contents Part 1-Preliminary 1 1 Short title [see Note 1] 1 2 Commencement [see Note 1] 1 3 Definitions 1 4 When does a person have private patient hospital cover? 2 5 Who is a dependant of a person? 3 5A What is the singles surcharge threshold? 3 6 What is the family surcharge threshold? 4 7 When are people married? 4 8 Who is a prescribed person? 5 Part 2-Imposition of surcharge 6 10 Imposition of Medicare levy surcharge 6 Part 3-Amount of surcharge payable 7 Division 1-General rule 7 11 Amount of surcharge payable 7 Division 2-Amount of surcharge for single person without dependants 8 12 Amount of surcharge for single person without dependants 8 Division 3-Amount of surcharge for single person with dependants 9 13 Amount of surcharge for single person with dependants 9 Division 4-Amount of surcharge for married person 11 14 Who does this Division apply to? 11 15 Amount of surcharge if this Division applies for whole year 12 16 Amount of surcharge if this Division applies for part of the year 12 Notes 15 An Act to implement A New Tax System by imposing Medicare levy surcharge on reportable fringe benefits totals of some employees without private hospital insurance Part 1-Preliminary 1 Short title [see Note 1] This Act may be cited as the A New Tax System (Medicare Levy Surcharge-Fringe Benefits) Act 1999. 2 Commencement [see Note 1] This Act commences on the day on which the A New Tax System (Fringe Benefits Reporting) Act 1999 receives the Royal Assent. 3 Definitions (1) In this Act, unless the contrary intention appears: Assessment Act means the Income Tax Assessment Act 1936. covered by an insurance policy that provides private patient hospital cover has a meaning affected by section 4. Note: For limited purposes, sections 12, 13 and 14 also treat certain persons as being covered by an insurance policy that provides private patient hospital cover. dependant of a person has the meaning given by section 5. family surcharge threshold for a person for a year of income has the meaning given by section 6. income for surcharge purposes has the same meaning as in the Income Tax Assessment Act 1997. married has a meaning affected by section 7. prescribed person has the meaning given by section 8. reportable fringe benefits total has the same meaning as in the Fringe Benefits Tax Assessment Act 1986. resident of Australia has the meaning given by section 10. singles surcharge threshold for a person for a year of income has the meaning given by section 5A. surcharge means Medicare levy surcharge imposed by section 10. (2) Subject to subsection (1) and any other contrary intention, an expression used in both this Act and Part VIIB of the Assessment Act has the same meaning in this Act as it has in that Part. 4 When does a person have private patient hospital cover? (1) For the purposes of this Act, a person is covered by an insurance policy that provides private patient hospital cover if: (a) the policy is a complying health insurance policy (within the meaning of the Private Health Insurance Act 2007) that covers hospital treatment (within the meaning of that Act); and (b) any excess payable in respect of benefits under the policy is no more than: (i) $500 in any 12 month period, in relation to a policy under which only one person is insured; and (ii) $1,000 in any 12 month period, in relation to any other policy. (2) Paragraph (1)(b) does not apply in relation to an insurance policy under which a person has been insured continuously since the end of 24 May 2000, as long as the amount of any excess payable under the policy has not increased since that time. (4) For the purposes of this Act, a person is also covered by an insurance policy that provides private patient hospital cover if: (a) the policy is issued by a person to whom subsection 67(3) of the National Health Act 1953 applied immediately before the commencement of the Private Health Insurance Act 2007; and (b) in a case where the person referred to in paragraph (a) had been, immediately before that commencement, a registered organization within the meaning of the National Health Act 1953- the policy would have been, immediately before that commencement, an applicable benefits arrangement, within the meaning of section 5A of that Act, to which paragraph 5A(1)(a) of that Act would apply. (5) However, for the purposes of this Act a person is not covered by an insurance policy that provides private patient hospital cover if: (a) the person is covered by an insurance policy described in subsection (4); and (b) any excess payable in respect of benefits under the policy is more than: (i) $500 in any 12 month period, in relation to a policy under which only one person is insured; and (ii) $1,000 in any 12 month period, in relation to any other policy. 5 Who is a dependant of a person? A person is a dependant of another person for a period if the person would be a dependant of the other person for the period for the purposes of Part VIIB of the Assessment Act, disregarding subsections 251R(4), (5), (6B), (6C) and (6D) of that Act. 5A What is the singles surcharge threshold? (1) The singles surcharge threshold for a person for the 2008-09 year of income is $70,000. This amount is indexed annually. Indexation of singles surcharge threshold (2) The amount of the singles surcharge threshold is indexed annually by: (a) multiplying the singles surcharge threshold for the 2008-09 year of income by its indexation factor; and (b) rounding the result in paragraph (a) down to the nearest multiple of $1,000. (3) The singles surcharge threshold is not indexed if its indexation factor is 1 or less. (4) The indexation factor is: [pic] (5) The indexation factor mentioned in subsection (4) is calculated to 3 decimal places (rounding up if the fourth decimal place is 5 or more). (6) The index number for a quarter is the estimate of full-time adult average weekly ordinary time earnings for the middle month of the quarter first published by the Australian Statistician for that month. 6 What is the family surcharge threshold? (1) The family surcharge threshold for a person for a year of income is an amount equal to double the singles surcharge threshold for the year of income. (2) However, if the person has 2 or more dependants who are children, the family surcharge threshold for the person for the year of income is the sum of: (a) an amount equal to double the singles surcharge threshold for the year of income; and (b) the result of the following formula: [pic] Example: If a person has 3 dependants who are children, the family surcharge threshold for the 2008-09 year of income is: [pic] 7 When are people married? De facto couples treated as if married (1) This Act applies to 2 persons (whether of the same sex or different sexes) as if they were married to each other for a period if: (a) their relationship is registered for the period under a law of a State or Territory prescribed for the purposes of section 2E of the Acts Interpretation Act 1901 as a kind of relationship prescribed for the purposes of that section; or (b) they lived together in a relationship as a couple on a genuine domestic basis for the period, although not legally married to each other. (1A) If, during the period, either or both of the persons was legally married to another person, or in a relationship mentioned in paragraph (1)(a) with another person, this Act applies as if the person or persons were not legally married to, or in a relationship mentioned in paragraph (1)(a) with, the other person. Persons living separately taken not to be married (2) A person is taken not to be married to another person if they are living separately and apart. New widows and widowers taken to be married until end of year (3) If: (a) the last person (the deceased) to whom another person was married during a year of income died during the year of income; and (b) the death occurred while they were married; the living person is taken to be married to the deceased during the period starting on the day the deceased died and ending on 30 June of the year of income. 8 Who is a prescribed person? A person is a prescribed person for a period if the person would be a prescribed person for the purposes of Part VIIB of the Assessment Act during the period, disregarding subsection 251U(3) of that Act. Part 2-Imposition of surcharge 10 Imposition of Medicare levy surcharge Surcharge imposed on reportable fringe benefits total (1) Medicare levy surcharge is imposed on the reportable fringe benefits total for a year of income of a person who is a resident of Australia at any time during the year of income. Note: Subdivision 61-L (tax offset for Medicare levy surcharge (lump sum payments in arrears)) of the Income Tax Assessment Act 1997 might provide a tax offset for a person if Medicare levy surcharge is payable by the person. Who is a resident of Australia-general rule (2) A person is a resident of Australia if he or she is a resident of Australia as defined in subsection 6(1) of the Assessment Act. Exception for Norfolk Island (3) However, a person is not a resident of Australia for the purposes of this Act if he or she is a resident of Australia as defined in subsection 6(1) of the Assessment Act merely because subsection 7A(2) of that Act treats Norfolk Island as part of Australia. Application: 1999-2000 year of income onwards (4) Subsection (1) applies to the 1999-2000 year of income and later years of income. Part 3-Amount of surcharge payable Division 1-General rule 11 Amount of surcharge payable General rule The amount of surcharge payable by a person on the person's reportable fringe benefits total for a year of income is the total of the amounts worked out under whichever of Divisions 2, 3 and 4 apply to the person for a period in the year of income. Division 2-Amount of surcharge for single person without dependants 12 Amount of surcharge for single person without dependants (1) This Division applies to a person for a period in a year of income if: (a) the person's income for surcharge purposes for the year of income exceeds the singles surcharge threshold for the year of income; and (b) during the whole of the period: (i) the person is not a married person; and (ii) the person does not have any dependants; and (iii) the person is not covered by an insurance policy that provides private patient hospital cover; and (iv) the person is not a prescribed person. (2) The amount of surcharge payable on the person's reportable fringe benefits total for the year of income is 1% of that total if this Division applies to the person for the whole of the year of income. (3) If this Division applies to the person for only some of the days of the year of income, the amount of surcharge payable on the person's reportable fringe benefits total for the year of income includes the amount worked out using the formula: [pic] Division 3-Amount of surcharge for single person with dependants 13 Amount of surcharge for single person with dependants Application (1) This Division applies to a person for a period in a year of income if: (a) the person's income for surcharge purposes for the year of income exceeds the person's family surcharge threshold for the year of income; and (b) during the whole of the period: (i) the person is not a married person; and (ii) the person has one or more dependants; and (iii) the person, or at least one of the person's dependants, is not covered by an insurance policy that provides private patient hospital cover; and (iv) the person is not a prescribed person. Special rules for applying subparagraph (1)(b)(iii) (2) For the purposes of subparagraph (1)(b)(iii): (a) the person is taken to be covered during the whole of the period by an insurance policy that provides private patient hospital cover if, apart from subsection 251U(2) of the Assessment Act, the person would be a prescribed person for the period because of paragraph 251U(1)(a), (b), (c), (ca), (caa) or (cb) of that Act; and (b) disregard each of the person's dependants who: (i) is a prescribed person for the period; or (ii) would be a prescribed person for the period apart from subsection 251U(2) of the Assessment Act. Note: Paragraphs 251U(1)(a), (b), (c), (ca), (caa) and (cb) of the Assessment Act provide that the following are prescribed persons: 1. defence personnel and members of their families who can get free medical treatment; 2. people who can get free medical treatment under the Veterans' Entitlements Act 1986 or the Military Rehabilitation and Compensation Act 2004; 3. people who receive certain payments under the Social Security Act 1991 or the Veterans' Entitlements Act 1986. Subsection 251U(2) of the Assessment Act provides that a person who would otherwise be a prescribed person is not a prescribed person if one or more of his or her dependants are not prescribed persons. Amount of surcharge payable for whole year (3) The amount of surcharge payable on the person's reportable fringe benefits total for the year of income is 1% of that total if this Division applies to the person for the whole of the year of income. Amount of surcharge payable for part of year (4) If this Division applies to the person for only some of the days of the year of income, the amount of surcharge payable on the person's reportable fringe benefits total for the year of income includes the amount worked out using the formula: [pic] Division 4-Amount of surcharge for married person 14 Who does this Division apply to? Application (1) This Division applies to a person for a period in a year of income if, during the whole of the period: (a) the person is a married person; and (b) the person, or at least one of the person's dependants, is not covered by an insurance policy that provides private patient hospital cover; and (c) the person is not a prescribed person. Special rules for applying paragraph (1)(b) (2) For the purposes of paragraph (1)(b): (a) the person is taken to be covered during the whole of the period by an insurance policy that provides private patient hospital cover if, apart from subsection 251U(2) of the Assessment Act, the person would be a prescribed person for the period because of paragraph 251U(1)(a), (b), (c), (ca), (caa) or (cb) of that Act; and (b) disregard each of the person's dependants who: (i) is a prescribed person for the period; or (ii) would be a prescribed person for the period apart from subsection 251U(2) of the Assessment Act. Note: Paragraphs 251U(1)(a), (b), (c), (ca), (caa) and (cb) of the Assessment Act provide that the following are prescribed persons: 4. defence personnel and members of their families who can get free medical treatment; 5. people who can get free medical treatment under the Veterans' Entitlements Act 1986 or the Military Rehabilitation and Compensation Act 2004; 6. people who receive certain payments under the Social Security Act 1991 or the Veterans' Entitlements Act 1986. Subsection 251U(2) of the Assessment Act provides that a person who would otherwise be a prescribed person is not a prescribed person if one or more of his or her dependants are not prescribed persons. 15 Amount of surcharge if this Division applies for whole year When this section applies (1) The amount of surcharge payable on the person's reportable fringe benefits total for the year of income is 1% of that total if: (a) this Division applies to the person for the whole of the year of income; and (b) the sum of the person's income for surcharge purposes, and the person's spouse's income for surcharge purposes, for the year of income exceeds the person's family surcharge threshold for the year of income; and (c) the person's income for surcharge purposes for the year of income exceeds $18,839. Special rule if person's spouse is a presently entitled beneficiary in a trust estate (2) In working out whether subsection (1) applies to a person whose spouse is a beneficiary presently entitled to a share in the net income of a trust estate in respect of which the trustee is liable to be assessed under section 98 of the Assessment Act, assume that: (a) the spouse's income for surcharge purposes included that share; and (b) subsection 271-105(1) in Schedule 2F to that Act did not apply in working out the net income of the trust estate. 16 Amount of surcharge if this Division applies for part of the year When this section applies (1) The amount of surcharge payable on a person's reportable fringe benefits total for a year of income includes the amount worked out using the formula in subsection (4) if: (a) this Division applies to the person for only part of the year of income; and (b) either subsection (2) or (3) applies to the person. Person married for whole year of income (2) This subsection applies to the person if: (a) the person is married for the whole of the year of income; and (b) the sum of the person's income for surcharge purposes, and the person's spouse's income for surcharge purposes, for the year of income exceeds the person's family surcharge threshold for the year of income; and (c) the person's income for surcharge purposes for the year of income exceeds $18,839. Person married for part of the year of income (3) This subsection applies to the person if: (a) the person is married for only part of the year of income; and (b) the person's income for surcharge purposes for the year of income exceeds the person's family surcharge threshold for the year of income. Amount of surcharge (4) The amount of surcharge payable on the person's reportable fringe benefits total for the year of income includes the amount worked out using the formula: [pic] where: number of applicable days is the number of days in the year of income for which this Division applies to the person. Special rule if person's spouse is a presently entitled beneficiary in a trust estate (5) In working out whether subsection (2) applies to a person whose spouse is a beneficiary presently entitled to a share in the net income of a trust estate in respect of which the trustee is liable to be assessed under section 98 of the Assessment Act, assume that: (a) the spouse's income for surcharge purposes included that share; and (b) subsection 271-105(1) in Schedule 2F to that Act did not apply in working out the net income of the trust estate. Notes to the A New Tax System (Medicare Levy Surcharge-Fringe Benefits) Act 1999 Note 1 The A New Tax System (Medicare Levy Surcharge-Fringe Benefits) Act 1999 as shown in this compilation comprises Act No. 18, 1999 amended as indicated in the Tables below. For all relevant information pertaining to application, saving or transitional provisions see Table A. Table of Acts |Act |Number |Date |Date of |Applica| | |and year|of Assent|commencement|tion, | | | | | |saving | | | | | |or | | | | | |transit| | | | | |ional | | | | | |provisi| | | | | |ons | |A New Tax System|18, 1999|19 Apr |19 Apr 1999 | | |(Medicare Levy | |1999 | | | |Surcharge-Fringe| | | | | |Benefits) Act | | | | | |1999 | | | | | |A New Tax System|53, 2000|30 May |30 May 2000 |Sch. 1 | |(Medicare Levy | |2000 | |(item 5| |Surcharge-Fringe| | | |) | |Benefits) | | | | | |Amendment Act | | | | | |2000 | | | | | |Medicare Levy |54, 2000|30 May |Schedule 1 |Sch. 1 | |Amendment (CPI | |2000 |(items 1, |(item 2| |Indexation) Act | | |2): Royal |) | |2000 | | |Assent | | |Taxation Laws |76, 2000|28 June |Schedule 3 |Sch. 3 | |Amendment Act | |2000 |(items 1-3, |(item 6| |(No. 6) 2000 | | |6): Royal |) | | | | |Assent | | |Medicare Levy |12, 2001|22 Mar |Schedule 1 |Sch. 1 | |Amendment (CPI | |2001 |(items 1, |(item 2| |Indexation) Act | | |2): Royal |) | |(No. 1) 2001 | | |Assent | | |Taxation Laws |39, 2002|26 June |Schedule 1 |Sch. 1 | |Amendment | |2002 |(items 1, 2,|(item 1| |(Medicare Levy | | |15): Royal |5) | |and Medicare | | |Assent | | |Levy Surcharge) | | | | | |Act 2002 | | | | | |Taxation Laws |67, 2003|30 June |Schedule 1 |Sch. 1 | |Amendment Act | |2003 |(items |(item 1| |(No. 6) 2003 | | |13-15): |5) | | | | |Royal Assent| | |Military |52, 2004|27 Apr |Schedule 3 |- | |Rehabilitation | |2004 |(items 11, | | |and Compensation| | |12): 1 July | | |(Consequential | | |2004 (see | | |and Transitional| | |s. 2(1)) | | |Provisions) Act | | | | | |2004 | | | | | |Tax Laws |84, 2004|25 June |S. 4 and |S. 4 | |Amendment | |2004 |Schedule 1 |S. 5 | |(Medicare Levy | | |(items 1, |(rep. | |and Medicare | | |2): Royal |by 75, | |Levy Surcharge) | | |Assent |2010, | |Act 2004 | | | |Sch. 6 | | | | | |[item 1| | | | | |16]) | |as amended by | | | | | |Tax Laws |75, 2010|28 June |Schedule 6 |- | |Amendment (2010 | |2010 |(item 116): | | |Measures No. 2) | | |29 June 2010| | |Act 2010 | | | | | |Tax Laws |62, 2005|26 June |Schedule 1 |Sch. 1 | |Amendment | |2005 |(items 1, |(item 1| |(Medicare Levy | | |13): Royal |3) | |and Medicare | | |Assent |S. 4 | |Levy Surcharge) | | | |(rep. | |Act 2005 | | | |by 75, | | | | | |2010, | | | | | |Sch. 6 | | | | | |[item 1| | | | | |17]) | |as amended by | | | | | |Tax Laws |75, 2010|28 June |Schedule 6 |- | |Amendment (2010 | |2010 |(item 117): | | |Measures No. 2) | | |29 June 2010| | |Act 2010 | | | | | |Tax Laws |59, 2006|22 June |Schedule 1 |Sch. 1 | |Amendment | |2006 |(items 1, |(item 1| |(Medicare Levy | | |13): Royal |3) | |and Medicare | | |Assent | | |Levy Surcharge) | | | | | |Act 2006 | | | | | |Tax Laws |80, 2006|30 June |Schedule 6 |- | |Amendment (2006 | |2006 |(item 1): | | |Measures No. 3) | | |Royal Assent| | |Act 2006 | | | | | |Superannuation |15, 2007|15 Mar |Schedule 1 |Sch. 1 | |Legislation | |2007 |(items 9, |(item | |Amendment | | |406(1)-(3)):|406(1)-| |(Simplification)| | |(a) |(3)) | |Act 2007 | | | | | |Private Health |32, 2007|30 Mar |Schedule 2 |- | |Insurance | |2007 |(items 4-8):| | |(Transitional | | |1 Apr 2007 | | |Provisions and | | |(see | | |Consequential | | |s. 2(1)) | | |Amendments) Act | | | | | |2007 | | | | | |Tax Laws |75, 2007|21 June |Schedule 1 |Sch.1 | |Amendment (2007 | |2007 |(items 14, |(item 2| |Budget Measures)| | |26): Royal |6) | |Act 2007 | | |Assent | | |Tax Laws |50, 2008|25 June |Schedule 1 |Sch. 1 | |Amendment | |2008 |(items 1, |(item 1| |(Medicare Levy | | |13): Royal |3) | |and Medicare | | |Assent | | |Levy Surcharge) | | | | | |Act 2008 | | | | | |Tax Laws |110, |31 Oct |S. 4 and |S. 4 | |Amendment |2008 |2008 |Schedule 1 |and | |(Medicare Levy | | |(items 1-5, |Sch. 1 | |Surcharge | | |11, 12): |(items | |Thresholds) Act | | |Royal Assent|11, 12)| |(No. 2) 2008 | | | | | |Same-Sex |144, |9 Dec |Schedule 14 |Sch. 14| |Relationships |2008 |2008 |(items 1, |(item 2| |(Equal Treatment| | |2): 10 Dec |) | |in Commonwealth | | |2008 | | |Laws-General Law| | | | | |Reform) Act 2008| | | | | |Tax Laws |27, 2009|26 Mar |Schedule 3 |Sch. 3 | |Amendment (2009 | |2009 |(items 22-32|(item | |Measures No. 1) | | |, 102(1)): |102(1))| |Act 2009 | | |27 Mar 2009 | | |Tax Laws |41, 2009|23 June |Schedule 1 |Sch. 1 | |Amendment | |2009 |(items 1, |(item 1| |(Medicare Levy | | |13): Royal |3) | |and Medicare | | |Assent | | |Levy Surcharge) | | | | | |Act 2009 | | | | | |Tax Laws |78, 2010|29 June |Schedule 1 |Sch. 1 | |Amendment | |2010 |(item 1, |(item 1| |(Medicare Levy | | |13): Royal |3) | |and Medicare | | |Assent | | |Levy Surcharge) | | | | | |Act 2010 | | | | | |Tax Laws |44, 2011|27 June |Schedule 1 |Sch. 1 | |Amendment | |2011 |(items 1, |(item 1| |(Medicare Levy | | |13): Royal |3) | |and Medicare | | |Assent | | |Levy Surcharge) | | | | | |Act 2011 | | | | | |Acts |46, 2011|27 June |Schedule 2 |Sch. 3 | |Interpretation | |2011 |(item 65) |(items | |Amendment Act | | |and |10, 11)| |2011 | | |Schedule 3 | | | | | |(items 10, | | | | | |11): 27 Dec | | | | | |2011 | | |Clean Energy |159, |4 Dec |Schedule 2 |Sch. 2 | |(Tax Laws |2011 |2011 |(items 1, |(item 1| |Amendments) Act | | |11): [see |1) | |2011 | | |Note 2 and | | | | | |Table A] | | |Tax Laws |12, 2012|21 Mar |Schedule 6 |- | |Amendment (2011 | |2012 |(item 22): | | |Measures No. 9) | | |Royal Assent| | |Act 2012 | | | | | |Fairer Private |28, 2012|4 Apr |Schedule 1: |Sch. 1 | |Health Insurance| |2012 |[see |(item 1| |Incentives | | |s. 2(1), |7) | |(Medicare Levy | | |Note 3 and | | |Surcharge-Fringe| | |Table A] | | |Benefits) Act | | |Remainder: | | |2012 | | |Royal Assent| | (a) Subsection 2(1) (item 2) of the Superannuation Legislation Amendment (Simplification) Act 2007 provides as follows: (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms. |Commencement information | |Column 1 |Column 2 |Column 3 | |Provision(s)|Commencement |Date/Detail| | | |s | |2. |Immediately after the |15 March | |Schedule 1 |commencement of Schedule 1 to|2007 | | |the Tax Laws Amendment | | | |(Simplified Superannuation) | | | |Act 2007. | | Table of Amendments |ad. = added or inserted am. = amended rep. = | |repealed rs. = repealed and substituted | |Provision affected|How affected | |Part 1 | | |S. 3 |am. No. 76, 2000; No. 110, 2008; No. | | |27, 2009 | |S. 4 |rs. No. 76, 2000 | | |am. No. 32, 2007 | |S. 5A |ad. No. 110, 2008 | |S. 6 |am. No. 110, 2008 | |S. 7 |am. No. 144, 2008; No. 46, 2011 | |S. 9 |am. No. 15, 2007 | | |rep. No. 27, 2009 | |Part 2 | | |Note to s. 10(1) |ad. No. 80, 2006 | |Part 3 | | |Division 1 | | |S. 11 |am. No. 53, 2000; No. 12, 2012 | |Division 2 | | |S. 12 |am. No. 110, 2008; No. 27, 2009 | |Division 3 | | |S. 13 |am. No. 27, 2009 | |Note to s. 13(2) |am. No. 52, 2004 | |Division 4 | | |Note to s. 14(2) |am. No. 52, 2004 | |Subhead to s. |ad. No. 53, 2000 | |15(1) | | |Ss. 15, 16 |am. Nos. 53 and 54, 2000; No. 12, 2001;| | |No. 39, 2002; No. 67, 2003; No. 84, | | |2004; No. 62, 2005; No. 59, 2006; | | |No. 75, 2007; No. 50, 2008; Nos. 27 and| | |41, 2009; No. 78, 2010; No. 44, 2011 | Note 2 Clean Energy (Tax Laws Amendments) Act 2011 (No. 159, 2011) The following amendment commences on 1 July 2012: Schedule 2 1 Paragraphs 15(1)(c) and 16(2)(c) Omit "$18,839", substitute "20,542". As at 23 May 2012 the amendment is not incorporated in this compilation. Note 3 Fairer Private Health Insurance Incentives (Medicare Levy Surcharge-Fringe Benefits) Act 2012 (No. 28, 2012) The following amendments commence on 1 July 2012: Schedule 1 1 Subsection 3(1) (definition of family surcharge threshold) Repeal the definition. 2 Subsection 3(1) Insert: family tier 1 threshold, of a person for a year of income, means the family tier 1 threshold (within the meaning of the Private Health Insurance Act 2007) of the person for the financial year corresponding to the year of income. 3 Subsection 3(1) (definition of singles surcharge threshold) Repeal the definition. 4 Subsection 3(1) Insert: singles tier 1 threshold, of a person for a year of income, means the singles tier 1 threshold (within the meaning of the Private Health Insurance Act 2007) of the person for the financial year corresponding to the year of income. 5 Subsection 3(1) Insert: tier 2 earner has the meaning given by section 6. 6 Subsection 3(1) Insert: tier 3 earner has the meaning given by section 6. 7 Sections 5A and 6 Repeal the sections, substitute: 6 What is a tier 2 earner and tier 3 earner (1) Subject to this section, for the purposes of this Act: (a) tier 2 earner, for a year of income, means a tier 2 earner (within the meaning of the Private Health Insurance Act 2007) for the financial year corresponding to the year of income; and (b) tier 3 earner, for a year of income, means a tier 3 earner (within the meaning of that Act) for the financial year corresponding to the year of income. (2) In determining whether a person is a tier 2 earner or tier 3 earner for a year of income for the purposes of this Act, section 22-30 of the Private Health Insurance Act 2007 operates with the modification set out in subsection (3). (3) Replace paragraph 22-30(1)(b) of the Private Health Insurance Act 2007 with the following paragraph: (b) on any day in the year, the person has one or more dependants (within the meaning of the A New Tax System (Medicare Levy Surcharge-Fringe Benefits) Act 1999), other than a dependant to whom the person is married (within the meaning of that Act): 8 Paragraph 12(1)(a) Omit "the singles surcharge threshold", substitute "the person's singles tier 1 threshold". 9 At the end of section 12 Add: (4) Increase the amount of each percentage mentioned in subsections (2) and (3) by 0.25 of a percentage point if the person is a tier 2 earner for the year of income. (5) Increase the amount of each percentage mentioned in subsections (2) and (3) by 0.5 of a percentage point if the person is a tier 3 earner for the year of income. 10 Paragraph 13(1)(a) Omit "family surcharge threshold", substitute "family tier 1 threshold". 11 At the end of section 13 Add: (5) Increase the amount of each percentage mentioned in subsections (3) and (4) by 0.25 of a percentage point if the person is a tier 2 earner for the year of income. (6) Increase the amount of each percentage mentioned in subsections (3) and (4) by 0.5 of a percentage point if the person is a tier 3 earner for the year of income. 12 Paragraph 15(1)(b) Omit "family surcharge threshold", substitute "family tier 1 threshold". 13 At the end of section 15 Add: (3) Increase the amount of the percentage mentioned in subsection (1) by 0.25 of a percentage point if the person is a tier 2 earner for the year of income. (4) Increase the amount of the percentage mentioned in subsection (1) by 0.5 of a percentage point if the person is a tier 3 earner for the year of income. 14 Paragraph 16(2)(b) Omit "family surcharge threshold", substitute "family tier 1 threshold". 15 Paragraph 16(3)(b) Omit "family surcharge threshold", substitute "family tier 1 threshold". 16 After subsection 16(4) Insert: (4A) Increase the amount of the percentage mentioned in subsection (4) by 0.25 of a percentage point if the person is a tier 2 earner for the year of income. (4B) Increase the amount of the percentage mentioned in subsection (4) by 0.5 of a percentage point if the person is a tier 3 earner for the year of income. As at 23 May 2012 the amendments are not incorporated in this compilation. Table A Application, saving or transitional provisions A New Tax System (Medicare Levy Surcharge-Fringe Benefits) Amendment Act 2000 (No. 53, 2000) Schedule 1 5 Application The amendments made by this Schedule apply to assessments for the 1999- 2000 year of income and later years of income. Medicare Levy Amendment (CPI Indexation) Act 2000 (No. 54, 2000) Schedule 1 2 Application The amendments of the A New Tax System (Medicare Levy Surcharge-Fringe Benefits) Act 1999 made by this Schedule apply to assessments for the 1999-2000 year of income and later years of income. Taxation Laws Amendment Act (No. 6) 2000 (No. 76, 2000) Schedule 3 6 Application of amendments The amendments made by this Schedule apply for the purposes of working out Medicare levy and surcharge (as defined in Part VIIB of the Income Tax Assessment Act 1936) for financial years starting on or after 1 July 2000. Medicare Levy Amendment (CPI Indexation) Act (No. 1) 2001 (No. 12, 2001) Schedule 1 2 Application The amendments of the A New Tax System (Medicare Levy Surcharge-Fringe Benefits) Act 1999 made by this Part apply to assessments for the 2000- 2001 year of income and later years of income. Taxation Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Act 2002 (No. 39, 2002) Schedule 1 15 Application of amendments The amendments made by this Schedule apply to assessments for the 2001- 2002 year of income and later years of income. Taxation Laws Amendment Act (No. 6) 2003 (No. 67, 2003) Schedule 1 15 Application of amendments The amendments made by this Schedule apply to assessments for the 2002- 2003 year of income and later years of income. Tax Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Act 2004 (No. 84, 2004) 4 Application of amendments The amendments made by Schedule 1 apply to assessments for the 2003-2004 year of income and later years of income. Tax Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Act 2005 (No. 62, 2005) Schedule 1 13 Application of amendments The amendments made by this Schedule apply to assessments for the 2004- 2005 year of income and later years of income. Tax Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Act 2006 (No. 59, 2006) Schedule 1 13 Application of amendments The amendments made by this Schedule apply to assessments for the 2005- 2006 year of income and later years of income. Superannuation Legislation Amendment (Simplification) Act 2007 (No. 15, 2007) Schedule 1 406 Application (1) The amendments made by this Schedule apply to the 2007-2008 income year and later years. (2) Despite subitem (1), those amendments apply to the 2007-2008 financial year and later years, to the extent that they relate to Division 292 of the Income Tax Assessment Act 1997. (3) Despite subitem (1), those amendments apply on and after 1 July 2007, to the extent that they relate to any of the following: (a) Divisions 82 and 83 of the Income Tax Assessment Act 1997; (b) Divisions 301 to 307 of that Act. Tax Laws Amendment (2007 Budget Measures) Act 2007 (No. 75, 2007) Schedule 1 26 Application of amendments The amendments made by this Part apply to assessments for the 2006- 2007 year of income and later years of income. Tax Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Act 2008 (No. 50, 2008) Schedule 1 13 Application of amendments The amendments made by this Schedule apply to assessments for the 2007- 08 year of income and later years of income. Tax Laws Amendment (Medicare Levy Surcharge Thresholds) Act (No. 2) 2008 (No. 110, 2008) 4 Review of operation of Act (1) The Minister for Health and Ageing must cause an independent review of the operation of this Act to be undertaken as soon as possible after each anniversary of the commencement of this Act, for a period of three consecutive years. (2) The review is to consider and report on the impact on public hospitals of the amendments made by this Act, including the number of episodes of care, the impact on operating costs and the impact on elective surgery waiting lists. (3) The person undertaking the review must give the Minister a written report of the review, and the Minister must cause a copy of the report to be tabled in each House of the Parliament within 15 sitting days of receiving the report. Schedule 1 11 Application The amendments made by this Schedule apply to assessments for the 2008- 09 year of income and later years of income. 12 Transitional (1) In this item: new Act means the A New Tax System (Medicare Levy Surcharge-Fringe Benefits) Act 1999, and the Medicare Levy Act 1986, as amended by this Schedule. (2) For the purposes of the new Acts, if: (a) a person is covered by an insurance policy that provides private patient hospital cover; and (b) the person is covered by that policy: (i) during any part of the period starting on 1 July 2008 and ending on 31 December 2008 (the designated period); and (ii) on 1 January 2009; the person is taken to be covered by that policy during the whole of the designated period. Note: For this purpose, a person includes a dependant of another person. Same-Sex Relationships (Equal Treatment in Commonwealth Laws-General Law Reform) Act 2008 (No. 144, 2008) Schedule 14 2 Application of amendment of the A New Tax System (Medicare Levy Surcharge-Fringe Benefits) Act 1999 The amendment of the A New Tax System (Medicare Levy Surcharge-Fringe Benefits) Act 1999 made by this Schedule applies to the 2009-2010 year of income and later years of income. Tax Laws Amendment (2009 Measures No. 1) Act 2009 (No. 27, 2009) Schedule 3 102 Application (1) The amendments made by this Schedule apply in relation to income years starting on or after 1 July 2009. Tax Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Act 2009 (No. 41, 2009) Schedule 1 13 Application of amendments The amendments made by this Schedule apply to assessments for the 2008- 09 year of income and later years of income. Tax Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Act 2010 (No. 78, 2010) Schedule 1 13 Application of amendments The amendments made by this Schedule apply to assessments for the 2009- 10 year of income and later years of income. Tax Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Act 2011 (No. 44, 2011) Schedule 1 13 Application of amendments The amendments made by this Schedule apply to assessments for the 2010- 11 year of income and later years of income. Acts Interpretation Amendment Act 2011 (No. 46, 2011) Schedule 3 10 Saving-appointments The amendments made by Schedule 2 do not affect the validity of an appointment that was made under an Act before the commencement of this item and that was in force immediately before that commencement. 11 Transitional regulations The Governor-General may make regulations prescribing matters of a transitional nature (including prescribing any saving or application provisions) relating to the amendments and repeals made by Schedules 1 and 2. Clean Energy (Tax Laws Amendments) Act 2011 (No. 159, 2011) The following provision commences on 1 July 2012: Schedule 2 11 Application provision The amendments made by this Schedule apply to the 2012-13 year of income and later years of income. Fairer Private Health Insurance Incentives (Medicare Levy Surcharge-Fringe Benefits) Act 2012 (No. 28, 2012) The following provision commences on 1 July 2012: Schedule 1 17 Application The amendments made by this Schedule apply to the 2012-13 year of income and later years of income.