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A New Tax System (Fringe Benefits Reporting) Bill 1998
Schedule 4 Effect of fringe benefits on Medicare levy

   

Medicare Levy Act 1986

1  Subsection 3(1)

Insert:

reportable fringe benefits total of a person of a year of income has the same meaning as in the Assessment Act.

2  Subsection 3(2)

Omit “or taxable income” (twice occurring), substitute “, taxable income or reportable fringe benefits total”.

3  Subsections 8B(2) and 8C(3)

Omit “taxable income of a person”, substitute “total of a person’s taxable income and reportable fringe benefits total (if any)”.

4  Paragraphs 8D(3)(b) and (c)

Repeal the paragraphs, substitute:

                     (b)  the sum of the following exceeds the family surcharge threshold:

                              (i)  the person’s taxable income;

                             (ii)  the person’s reportable fringe benefits total (if any);

                            (iii)  the person’s spouse’s taxable income;

                            (iv)  the person’s spouse’s reportable fringe benefits total (if any); and

                     (c)  the total of the person’s taxable income and reportable fringe benefits total (if any) is more than $13,389.

5  Paragraphs 8D(4)(a) and (b)

Repeal the paragraphs, substitute:

                     (a)  both of the following conditions are met if the person is married for the whole of the year of income:

                              (i)  the sum of the person’s taxable income, the person’s reportable fringe benefits total (if any), the person’s spouse’s taxable income and the person’s spouse’s reportable fringe benefits total (if any) is more than the family surcharge threshold;

                             (ii)  the total of the person’s taxable income and reportable fringe benefits total (if any) is more than $13,389; or

                     (b)  the total of the person’s taxable income and reportable fringe benefits total (if any) is more than $13,389, if the person is married for only some of the year of income.

6  Paragraph 8G(2)(b)

Repeal the paragraph, substitute:

                     (b)  the sum of the following exceeds the family surcharge threshold:

                              (i)  the beneficiary’s trust income;

                             (ii)  the beneficiary’s spouse’s taxable income;

                            (iii)  the beneficiary’s spouse’s reportable fringe benefits total (if any); and

7  Subparagraph 8G(3)(a)(i)

Repeal the subparagraph, substitute:

                              (i)  the sum of the beneficiary’s trust income, the beneficiary’s spouse’s taxable income and the beneficiary’s spouse’s reportable fringe benefits total (if any) is more than the family surcharge threshold; and

8  Application

The amendments made by this Schedule apply for the purposes of working out the amount of Medicare levy payable on taxable income for the 1999-2000 year of income or a later year of income.