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Families, Housing, Community Services and Indigenous Affairs and Other Legislation Amendment (2008 Budget and Other Measures) Bill 2008

Schedule 1 Income limit for family tax benefit Part B

Part 1 Main amendments

A New Tax System (Family Assistance) Act 1999

1  Paragraph 1(1)(b) of Schedule 1

Omit “29”, substitute “28B”.

2  Before Subdivision A of Division 1 of Part 4 of Schedule 1

Insert:

Subdivision AA When Part B rate is nil

28B   When Part B rate is nil

             (1)  Despite Subdivisions A and B, an individual’s Part B rate is nil if the individual’s adjusted taxable income is more than $150,000.

Note:          If the individual is a member of a couple, the individual’s adjusted taxable income is the higher of the individual’s adjusted taxable income and the adjusted taxable income of the individual’s partner: see clause 3 of Schedule 3.

             (2)  However, subclause (1) does not apply while the individual, or the individual’s partner, is receiving a social security pension, a social security benefit, a service pension or income support supplement.

3  Subclause 3(2) of Schedule 3

Repeal the subclause, substitute:

             (2)  For the purposes of Part 4 of Schedule 1, if an individual is a member of a couple, the individual’s adjusted taxable income for an income year is:

                     (a)  for the purposes of Subdivision AA of Division 1 of Part 4 of Schedule 1:

                              (i)  the individual’s adjusted taxable income for that year; or

                             (ii)  the adjusted taxable income for that year of the individual’s partner if it is more than the individual’s adjusted taxable income for that year; and

                     (b)  for the purposes of the other provisions of Part 4 of Schedule 1:

                              (i)  the individual’s adjusted taxable income for that year; or

                             (ii)  the adjusted taxable income for that year of the individual’s partner if it is less than the individual’s adjusted taxable income for that year.

4  Schedule 4 (heading) (note)

Omit “75”, substitute “85”.

5  Clause 2 of Schedule 4 (after table item 17)

Insert:

 

17AA

Income limit for family tax benefit (Part B)

FTB income limit (B)

[Schedule 1—subclause 28B(1)]

6  Subclause 3(1) of Schedule 4 (after table item 17)

Insert:

 

17AA

FTB income limit (B)

1 July

December

highest December quarter before reference quarter (but not earlier than December quarter 2007)

$1.00

7  Application

(1)       The amendments made by items 1 to 3 apply in relation to the 2008-09 income year and later income years.

(2)       The amendment made by item 6 applies in relation to the indexation day that is 1 July 2009 and all later indexation days.



 

Part 2 Other amendments

Income Tax Assessment Act 1936

8  After subsection 159J(1AA)

Insert:

       (1AB)  A taxpayer is not entitled, in his or her assessment in respect of a year of income, to a rebate under this section in respect of a dependant included in class 1, 2, 5 or 6 in the table in subsection (2) if the taxpayer’s taxable income for the year is more than $150,000.

9  After subsection 159L(3A)

Insert:

          (3B)  A taxpayer is not entitled, in his or her assessment in respect of a year of income, to a rebate under this section if the taxpayer’s taxable income for the year is more than $150,000.

10  Subsection 159P(4) (at the end of paragraphs (a) and (b) of the definition of dependant )

Add “or”.

11  Subsection 159P(4) (after paragraph (c) of the definition of dependant )

Insert:

                    (ca)  a person included in class 1, class 2, class 5 or class 6 in the table in subsection 159J(2) in respect of whom the taxpayer would be entitled to a rebate under section 159J but for subsection 159J(1AB); or

Medicare Levy Act 1986

12  Paragraph 8(1)(b)

After “subsection 159J(1AA)”, insert “or (1AB)”.

13  Paragraph 8(1)(d)

After “subsection 159L(3A)”, insert “or (3B)”.

14  Paragraph 8(2)(b)

After “subsection 159J(1AA)”, insert “or (1AB)”.

15  Paragraph 8(2)(d)

After “subsection 159L(3A)”, insert “or (3B)”.

16  Application

The amendments made by this Part apply in relation to the 2008-09 income year and later income years.