INCOME TAX RATES AMENDMENT ACT (NO. 1) 1997 

INCOME TAX RATES AMENDMENT ACT (NO. 1) 1997 
- TABLE OF PROVISIONS

1. Short title  
2. Commencement  
3. Schedule(s)  
SCHEDULE 1 Family tax initiative 
SCHEDULE 2 Technical amendments  

INCOME TAX RATES AMENDMENT ACT (NO. 1) 1997
- LONG TITLE
An Act to amend the Income Tax Rates Act 1986, and for
related purposes

INCOME TAX RATES AMENDMENT ACT (NO. 1) 1997
- SECT 1
Short title

                   This Act may be cited as the Income
Tax Rates Amendment Act (No. 1) 1997.

INCOME TAX RATES AMENDMENT ACT (NO. 1) 1997
- SECT 2
Commencement

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

INCOME TAX RATES AMENDMENT ACT (NO. 1) 1997
- SECT 3
Schedule(s)

                   Each Act that is specified in a Schedule
to this Act is amended or repealed as set out in the applicable items in the
Schedule concerned, and any other item in a Schedule to this Act has effect
according to its terms.

 

INCOME TAX RATES AMENDMENT ACT (NO. 1) 1997
- SCHEDULE 1
Family tax initiative

Income Tax Rates Act 1986
1  Paragraph 12(7)(a) (definition of B)
After "subsection (3)", insert ", Division 5 of
Part II".
2  Paragraph 12(8)(a) (definition of B)
After "subsection (4)", insert ", Division 5 of Part II".
3  Subsection 20F(1)
Repeal the subsection, substitute:
             (1)  If:
                     (a)  the taxable income of a year of
income of a taxpayer to whom section 20C or 20D applies, or would apart
from section 20E apply, consists of or includes a special income
component; and
                     (b)  the rate of tax for every $1 of
the taxable income, as worked out under clause 2 or 3 of Part I of
Schedule 7, clause 2 of Part I of Schedule 9 or
clause 3 of Part I of Schedule 11, as the case may be, and apart
from sections 20C, 20D and 20E, exceeds the section 20F rate
adjustment;
then:
                     (c)  sections 20C, 20D and 20E do
not apply; and 
                     (d)  the rate referred to in
paragraph (b) is reduced by the section 20F rate adjustment.
          (1A)  If:
                     (a)  the taxable income of a year of
income of a taxpayer to whom section 20C or 20D applies, or would apart
from section 20E apply, consists of or includes a special income
component; and
                     (b)  the rate of tax for every $1 of
the taxable income, as worked out under clause 2 or 3 of Part I of
Schedule 7, clause 2 of Part I of Schedule 9 or
clause 3 of Part I of Schedule 11, as the case may be, and apart
from sections 20C, 20D and 20E, does not exceed the section 20F rate
adjustment;
then:
                     (c)  sections 20C, 20D and 20E do
not apply; and 
                     (d)  the rate referred to in
paragraph (b) is reduced to nil.
4  Subsection 20F(2)
Omit all the words after paragraph (d), substitute:
               and (e)  the rate of tax for every $1 of the
taxable income, as worked out under clause 3 of Part I of
Schedule 12 and apart from sections 20C, 20D and 20E, exceeds the
section 20F rate adjustment;
then:
                      (f)  sections 20C, 20D and 20E do
not apply; and 
                     (g)  the rate referred to in
paragraph (e) is reduced by the section 20F rate adjustment.
5  After subsection 20F(2)
Insert:
          (2A)  If:
                     (a)  a trustee of a trust estate is
liable to be assessed and to pay tax under section 98 of the Assessment
Act in respect of a share of a resident beneficiary of the net income of the
trust estate of a year of income; and
                     (b)  Division 6AA of Part III
of that Act applies to a part of that share; and
                     (c)  that share consists of or includes
a capital gains component; and
                     (d)  section 20C or 20D applies,
or would apart from section 20E apply, to the beneficiary; and
                     (e)  the rate of tax for every $1 of
the taxable income, as worked out under clause 3 of Part I of
Schedule 12 and apart from sections 20C, 20D and 20E, does not exceed
the section 20F rate adjustment;
then:
                      (f)  sections 20C, 20D and 20E do
not apply; and 
                     (g)  the rate referred to in
paragraph (e) is reduced to nil.
6  Subsection 20F(3)
Insert:
section 20F rate adjustment means:                     (a)  for the purposes of
subsections (1) and (1A)--the rate worked out using the formula:
                     (b)  for the purposes of
subsections (2) and (2A)--the rate worked out using the formula:
7  Paragraphs 20G(1)(c), (2)(c), (3)(e) and (4)(e)
Omit "$5,400", substitute "the tax-free threshold"
8  After subsection 20G(2)
Insert:
          (2A)  If a taxpayer to whom subsection 20F(1A)
applies in respect of a year of income is liable to pay complementary tax under
subsection 156(4A) of the Assessment Act in respect of the whole or a part of the
taxable income of the year of income, the rate of complementary tax, as
determined under subsection 12(3), is reduced by the rate worked out using the
formula:
9  After subsection 20G(4)
Insert:
          (4A)  If:
                     (a)  a trustee of a trust estate is
liable to be assessed and to pay tax under subsection 98(1) or (2) of the
Assessment Act in respect of a beneficiary's share of the net income of a trust
estate of the year of income; and
                     (b)  subsection 20F(2A) applies in
respect of that share; and
                     (c)  the trustee is liable to pay
complementary tax under subsection 156(5A) of that Act in respect of the share;
the rate of complementary tax, as determined under
subsection 12(4), is reduced by the rate worked out using the formula:
10  Subsection 20G(5) (formula in the definition of adjusted
tax-free threshold)
Repeal the formula, substitute:
11  Subsection 20G(5)
Insert:
balance of section 20F rate adjustment, in relation to a taxpayer to whom subsection 20F(1A) or (2A) applies, means the rate obtained by subtracting:                     (a)  the rate of tax for every $1 of
the taxable income, as worked out under clause 2 or 3 of Part I of
Schedule 7, clause 2 of Part I of Schedule 9 or
clause 3 of Part I of Schedule 11, as the case may be, and apart
from sections 20C, 20D and 20E;
from:
                     (b)  the section 20F rate
adjustment.
12  Subsection 20G(5)
Insert:
section 20F rate adjustment, in relation to a taxpayer to whom subsection 20F(1A) or (2A) applies, has the same meaning as in whichever of those subsections applies to the taxpayer.13  Subsection 20G(5)
Insert:

"tax-free threshold" means:                     (a)  $5,400; or
                     (b)  if Division 4 applies to the
taxpayer in respect of the year of income--the amount calculated under whichever
of subsection 20(1) or 20(2) applies to the taxpayer.
14  Application
The amendments made by this Schedule apply in relation to the
1996-97 year of income and to all later years of income.

 

INCOME TAX RATES AMENDMENT ACT (NO. 1) 1997
- SCHEDULE 2
Technical amendments 

Income Tax Rates Act 1986
1 
Section 20B (definition of lowest marginal rate of tax)
Omit "Part 1", substitute "Part I".
2  Section 20C
Omit "Part 1" (wherever occurring), substitute
"Part I".
3  Section 20D
Omit "Part 1" (wherever occurring), substitute
"Part I".
4  Section 20E
Omit "Part 1" (wherever occurring), substitute
"Part I".
5  Section 20F
Omit "Part 1" (wherever occurring), substitute
"Part I".
6  Subsection 20G(5) (definition of tax-free threshold
increase)
Omit "Part 1", substitute "Part I".
7  Section 20H
Omit "Part 1" (wherever occurring), substitute
"Part I".
8  Subsection 20J(1)
Omit "Part 1" (wherever occurring), substitute
"Part I".
9  Subsection 20U(1)
Omit "Part 1" (wherever occurring), substitute
"Part I".
10  Application
The amendments made by this Schedule apply in relation to the
1996-97 year of income and to all later years of income.

 

        
    
                    
                
            
                
        
            
    

    
    
    
    

INCOME TAX RATES AMENDMENT ACT (NO. 1) 1997
- NOTES

Act No. 124 of 1997 as amended
This compilation was prepared on 17 November 2000
[This Act was amended by Act No. 83 of 1999

Amendments from Act No. 83
of 1999
[Schedule 10 (item 63) amended Schedule 1
(item 2)
Schedule 10 (item 63) commenced immediately after 15 September 1997]

Prepared by the Office of
Legislative Drafting,
Attorney-General's Department, 
Canberra

  

  

  

Contents
1............ Short title
............................................................................................ 
1
2............ Commencement
.................................................................................. 1
3............ Schedule(s)
.......................................................................................... 1
Schedule 1--Family tax initiative
                                                                                  
1
Income Tax Rates Act 1986
                                                                                        
1
Schedule 2--Technical amendments
                                                                            
1
Income Tax Rates Act 1986
                                                                                        
1

[Assented
to 
15 September 1997]