Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
 Download Current HansardDownload Current Hansard    View Or Save XMLView/Save XML

Previous Fragment    Next Fragment
Wednesday, 15 May 2013
Page: 3192

Mr BRADBURY (LindsayAssistant Treasurer and Minister Assisting for Deregulation) (09:47): I move:

That this bill be now read a second time.

The Income Tax (TFN Withholding Tax (ESS)) Amendment (DisabilityCare Australia) Bill 2013 is part of a package of measures increasing the Medicare levy by half a percentage point.

This bill contains consequential amendments to the Income Tax (TFN Withholding Tax (ESS)) Act 2009. These are necessary as a result of the increase in the Medicare levy, contained in the Medicare Levy Amendment (DisabilityCare Australia) Bill 2013.

Employers are required to pay the withholding tax if they provide their employees with discounted shares or rights and employees have not provided their tax file number or Australian Business Number to their employer by the end of the income year. This helps to ensure the integrity of the taxation of employee share schemes.

The rate of the withholding tax is currently 46.5 per cent, the top marginal rate of 45 per cent plus the current Medicare levy rate of 1.5 per cent.

The Income Tax (TFN Withholding Tax (ESS)) Amendment (DisabilityCare Australia) Bill 2013 will increase this rate to 47 per cent, from 1 July 2014, to reflect the increase in the Medicare levy from 1.5 per cent to 2 per cent.

These consequential amendments will help to ensure the integrity of the tax system.

The revenue from this package of bills will be used to provide a strong and stable funding stream for DisabilityCare Australia.

Further details of the bill are set out in the explanatory memorandum for the package of bills.

Debate adjourned.