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Tax Laws Amendment (Personal Income Tax Reduction) Bill 2004
Schedule 1 Personal income tax reduction

   

Income Tax Rates Act 1986

1  Clause 1 of Part I of Schedule 7 (table)

Repeal the table, substitute:

 

Tax rates for resident taxpayers

Item

For the part of the ordinary taxable income of the taxpayer that:

The rate is:

1

exceeds $6,000 but does not exceed $21,600

17%

2

(a) for the 2004-05 year of income—exceeds $21,600 but does not exceed $58,000; and

(b) for later years of income—exceeds $21,600 but does not exceed $63,000

30%

3

(a) for the 2004-05 year of income—exceeds $58,000 but does not exceed $70,000; and

(b) for later years of income—exceeds $63,000 but does not exceed $80,000

42%

4

(a) for the 2004-05 year of income—exceeds $70,000; and

(b) for later years of income—exceeds $80,000

47%

2  Clause 1 of Part II of Schedule 7 (table)

Repeal the table, substitute:

 

Tax rates for non-resident taxpayers

Item

For the part of the ordinary taxable income of the taxpayer that:

The rate is:

1

does not exceed $21,600

29%

2

(a) for the 2004-05 year of income—exceeds $21,600 but does not exceed $58,000; and

(b) for later years of income—exceeds $21,600 but does not exceed $63,000

30%

3

(a) for the 2004-05 year of income—exceeds $58,000 but does not exceed $70,000; and

(b) for later years of income—exceeds $63,000 but does not exceed $80,000

42%

4

(a) for the 2004-05 year of income—exceeds $70,000; and

(b) for later years of income—exceeds $80,000

47%

3  Application

The amendments made by this Schedule apply to assessments for the 2004-05 year of income and later years.

 

 

 

[ Minister’s second reading speech made in—

House of Representatives on 13 May 2004

Senate on 15 June 2004 ]

(75/04)