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Tax Laws Amendment (2007 Budget Measures) Bill 2007

Schedule 1 Budget taxation measures

Part 1 Dependent spouse tax offset

Income Tax Assessment Act 1936

1  Sub-subparagraph 23AB(7)(a)(ii)(D)

Omit all the words after “159J(2)”, substitute “(ignoring subsections 159J(1AA), (3AA) and (3AB)) if subsection 159J(1B) also included a reference to any dependant included in class 1 of that table and the amount applicable to class 1 of that table were $2,440”.

2  Subsection 79A(4) (paragraph (d) of the definition of relevant rebate amount )

Omit all the words after “159J(2)”, substitute “(ignoring subsections 159J(1AA), (3AA) and (3AB)) if subsection 159J(1B) also included a reference to any dependant included in class 1 of that table and the amount applicable to class 1 of that table were $2,440”.

3  Subsection 79B(6) (paragraph (d) of the definition of concessional rebate amount )

Omit all the words after “159J(2)”, substitute “(ignoring subsections 159J(1AA), (3AA) and (3AB)) if subsection 159J(1B) also included a reference to any dependant included in class 1 of that table and the amount applicable to class 1 of that table were $2,440”.

4  Subsection 159HA(7) (definition of indexable amount )

Repeal the definition, substitute:

indexable amount means:

                     (a)  an amount specified in subsection 159J(1B) or (2) (other than the amounts specified in column 3 of the table in subsection 159J(2) in respect of a dependant included in class 3 or 4); or

                     (b)  the amounts specified in subsection 159L(2); or

                     (c)  the amount specified in:

                              (i)  sub-subparagraph 23AB(7)(a)(ii)(D); or

                             (ii)  paragraph (d) of the definition of relevant rebate amount in subsection 79A(4); or

                            (iii)  paragraph (d) of the definition of concessional rebate amount in subsection 79B(6);

or, if any such amount has been altered under this section in relation to the 2008-09 year of income or a later year of income, the altered amount.

5  Subsection 159HA(7) (definition of indexing year of income )

Repeal the definition, substitute:

indexing year of income means the year of income commencing on 1 July 2008 or a later year of income.

6  Subsection 159J(1B)

Omit “references in that table to $1,000 were references to $1,200”, substitute “the reference in that table to $1,711 were a reference to $2,051”.

7  Subsection 159J(2) (table)

Repeal the table, substitute:

Column 1

Class

Column 2

Dependant

Column 3

Amounts of Rebate

1

Spouse of the taxpayer

$2,100

2

Child-housekeeper

$1,711

3

Child less than 21 years of age (not being a student)

In respect of 1 such child—$376

 

 

In respect of each other such child—$282

4

Student

$376

5

Invalid relative

$770

6

Parent of the taxpayer or of the taxpayer’s spouse

$1,540

8  Paragraphs 159K(1)(a) and (b)

Omit “$940” (wherever occurring), substitute “$1,607”.

9  Subsection 159K(2)

Omit “$940”, substitute “$1,607”.

10  Paragraph 159K(3)(b)

Omit “$940”, substitute “$1,607”.

11  Paragraph 159L(2)(a)

Omit “$1,200”, substitute “$2,051”.

12  Paragraph 159L(2)(b)

Omit “$1,000”, substitute “$1,711”.

13  Application of amendments

The amendments made by this Part apply to assessments for the 2007-2008 year of income and later years of income.



 

Part 2 Medicare levy and Medicare levy surcharge

A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999

14  Paragraphs 15(1)(c) and 16(2)(c)

Omit “$16,284”, substitute “$16,740”.

Medicare Levy Act 1986

15  Subsection 3(1) (paragraph (b) of the definition of phase-in limit )

Omit “$21,170”, substitute “$25,455”.

16  Subsection 3(1) (paragraph (c) of the definition of phase-in limit )

Omit “$17,604”, substitute “$19,694”.

17  Subsection 3(1) (paragraph (b) of the definition of threshold amount )

Omit “$19,583”, substitute “$21,637”.

18  Subsection 3(1) (paragraph (c) of the definition of threshold amount )

Omit “$16,284”, substitute “$16,740”.

19  Subsection 8(5) (definition of family income threshold )

Omit “$27,478”, substitute “$28,247”.

20  Subsection 8(5) (definition of family income threshold )

Omit “$2,523”, substitute “$2,594”.

21  Subsections 8(6) and (7)

Omit “$27,478”, substitute “$28,247”.

22  Paragraph 8D(3)(c)

Omit “$16,284”, substitute “$16,740”.

23  Subparagraph 8D(4)(a)(ii)

Omit “$16,284”, substitute “$16,740”.

24  Paragraph 8G(2)(c)

Omit “$16,284”, substitute “$16,740”.

25  Subparagraph 8G(3)(a)(ii)

Omit “$16,284”, substitute “$16,740”.

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.

 

 

 

[ Minister’s second reading speech made in—

House of Representatives on 10 May 2007

Senate on 12 June 2007 ]

(79/07)