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A New Tax System (Personal Income Tax Cuts) Bill 1998
Schedule 1 Amendment of the Income Tax Rates Act 1986

   

1  Paragraph 20C(1)(b)

Omit “taxpayers’”, substitute “taxpayer’s”.

2  Subsection 20C(1)

After “Schedule 7”, insert “(as in force immediately before the commencement of the A New Tax System (Personal Income Tax Cuts) Act 1998 )”.

3  Paragraph 20C(2)(a)

Omit “1997-98”, substitute “2000-01”.

4  Paragraph 20C(2)(b)

Omit “taxpayers’”, substitute “taxpayer’s”.

5  Subsection 20C(2)

Omit “$1,000”, substitute “$2,000”.

6  Paragraph 20D(1)(b)

Omit “taxpayers’” (wherever occurring), substitute “taxpayer’s”.

7  Subsection 20D(1)

After “Schedule 7”, insert “(as in force immediately before the commencement of the A New Tax System (Personal Income Tax Cuts) Act 1998 )”.

8  Paragraph 20D(2)(a)

Omit “1997-98”, substitute “2000-01”.

9  Paragraph 20D(2)(b)

Omit “taxpayers’” (wherever occurring), substitute “taxpayer’s”.

10  Subsection 20D(2)

Omit “$2,500”, substitute “$5,000”.

11  Subsection 20E(2) (table)

Repeal the table, substitute:

 

Tax rates for resident taxpayer

 

Column 1

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

Column 2

The rate is:

exceeds $20,000 but does not exceed the adjusted tax-free threshold

13%

exceeds the adjusted tax-free threshold but does not exceed $50,000

30%

exceeds $50,000 but does not exceed $75,000

40%

exceeds $75,000

47%

Note:       The heading to section 20E is altered by omitting “ $20,700 ” and substituting “ $20,000 ”.

12  Subsection 20S(3)

Omit “$1,000” (wherever occurring), substitute “$2,000”.

13  After subsection 20T(3)

Omit “$2,500” (wherever occurring), substitute “$5,000”.

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

Repeal the table, substitute:

 

Tax rates for resident taxpayer

 

Column 1

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

Column 2

The rate is:

exceeds $6,000 but does not exceed $20,000

17%

exceeds $20,000 but does not exceed $50,000

30%

exceeds $50,000 but does not exceed $75,000

40%

exceeds $75,000

47%

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

Repeal the table, substitute:

 

Tax rates for non-resident taxpayer

 

Column 1

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

Column 2

The rate is:

does not exceed $20,000

29%

exceeds $20,000 but does not exceed $50,000

30%

exceeds $50,000 but does not exceed $75,000

40%

exceeds $75,000

47%

16  Amendment of listed provisions

Each of the following provisions is amended by omitting “$5,400” (wherever occurring) and substituting “$6,000”:

Paragraphs 12A(3)(b) and (4)(b)

Subsection 12A(6) (definitions of adjusted tax-free threshold and tax-free threshold increase )

Subsections 20(1) and (2)

Subsection 20C(2)

Subsection 20D(2)

Subsection 20E(3) (definitions of adjusted tax-free threshold and tax-free threshold increase )

Subsection 20F(3) (definition of tax-free threshold increase )

Subsection 20G(5) (definitions of tax-free threshold and tax-free threshold increase )

Section 20H (definition of tax-free threshold increase )

Subsection 20U(1) (definitions of section 20C tax-free threshold increase and section 20D tax-free threshold increase )

Subparagraph 2(b)(ii) of Division 2 of Part I of Schedule 8

Paragraph 2(b) of Part I of Schedule 10

17  Amendment of listed provisions

Each of the following provisions is amended by omitting “$20,700” (wherever occurring) and substituting “$20,000”:

Subsection 20E(1)

Subparagraph 2(b)(ii) of Division 2 of Part I of Schedule 8

Paragraph 2(b) of Part I of Schedule 10



 

Schedule 2 Consequential amendments of other Acts

   

Income Tax Assessment Act 1936

1  Amendment of listed provisions

Each of the following provisions is amended by omitting “$5,400” (wherever occurring) and substituting “$6,000”:

Subsection 23AF(17E) (definition of tax free threshold increase )

Subsection 23AG(5B) (definition of tax free threshold increase )

Paragraph 221YDA(1)(g)

Subparagraph 221YDA(2)(a)(iv)

Income Tax Assessment Act 1997

2  Paragraph 388-55(2)(a)

Omit “$20,700”, substitute “$20,000”.

3  Paragraphs 388-60(1)(a) and (b)

Omit “34%”, substitute “30%”.



 

Schedule 3 Application

   

1  Application

(1)        Subject to subitem (2), the amendments made by this Act (except items 1, 2, 4, 6, 7 and 9 of Schedule 1) apply to assessments for the 2000-2001 income year and later income years.

(2)        The amendments of paragraph 221YDA(1)(g) and subparagraph 221YDA(2)(a)(iv) of the Income Tax Assessment Act 1936 made by item 1 of Schedule 2 to this Act apply for the purposes of working out amounts of provisional tax (including instalments) payable for the 2000-2001 income year and later income years.