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Termination Payments Surcharge Imposition Bill 1997



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D E P A R T M E N T O F T H E P A R L I A M E N T A R Y L I B R A R Y

Information and Research Services

Termination Payments Surcharge Imposition Bill 1997

Bills Digest

No. 130 1996-97

ISSN 1323-9031

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Information and Research Services

Termination Payments Surcharge Imposition Bill 1997

Chris Field Ian Ireland Law and Bills Digest Group 3 April 1997

Bills Digest No. 130 1996-97

Contents

TERMINATION PAYMENTS SURCHARGE IMPOSITION BILL 1997 1

PURPOSE 1

BACKGROUND 1

MAIN PROVISIONS 1

Warning:

This Digest was prepared for debate. It reflects the legislation as introduced and does not canvass subsequent amendments.

This Digest does not have any official legal status. Other sources should be consulted to determine the subsequent official s tatus of the Bill.

Termination Payments Surcharge Imposition Bill 1997

Date Introduced: 13 February 1997

House: House of Representatives

Portfolio: Treasury

Commencement: Royal Assent

Purpose

To impose formally the surcharge payable under the proposed Termination Payments Surcharge (Assessment and Collection) Bill 1997

Background

The reader is referred to Digest for the Superannuation Contributions Surcharge (Assessment and Collection) Bill 1997.

Main Provisions

Clause 4 imposes formally the surcharge payable under the Termination Payments Surcharge (Assessment and Collection) Act 1997.

Clause 5 deals with the rate of surcharge payable. Where the assessable income and superannuation contributions of a taxpayer is between $70 000 and $84 999 the rate of surcharge that will apply on a termination payment made to or for them is the percentage obtained by using, as in the Superannuation Contributions Surcharge Imposition Bill 1997, the following formula:

adjusted taxable income minus $70 000 divided by $1 000

Where the assessable income and superannuation contributions of a taxpayer is over $85 000 the rate of surcharge that will apply on a termination payment made to or for them is 15% of the termination payment.