Taxation Laws (Miscellaneous Provisions) Act 1986

No. 109 of 1986

An Act to amend the law relating to taxation

[Assented to 4 November 1986]

BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:

Short title

1. This Act may be cited as the Taxation Laws (Miscellaneous Provisions) Act 1986.

Commencement

2. This Act shall come into operation on the day on which it receives the Royal Assent.

Amendments

3. The Acts specified in the Schedule are amended as set out in the Schedule.

Application of amendments of the Income Tax Assessment Act 1936

4. (1) In this section, “Principal Act” means the Income Tax Assessment Act 1936.

(2) The amendments of sections 159p, 159zk, 160aaa, 160aab and 160aa of the Principal Act made by this Act apply to assessments in respect of income of the year of income that commenced on 1 July 1986 and of all subsequent years of income.

(3) In the application of sub-section 159p (3a) of the Principal Act as amended by this Act in relation to the year of income that commenced on 1 July 1986, the reference in that sub-section to 29% shall be read as a reference to 29.42%.

(4) In the application of sub-section 159zk (1) of the Principal Act as amended by this Act in relation to the year of income that commenced on 1 July 1986, the reference in that sub-section to 29% shall be read as a reference to 29.42%.

(5) In the application of sub-section 160aaa (1) of the Principal Act as amended by this Act in relation to the year of income that commenced on 1 July 1986, a reference in that sub-section to $6,142 shall be read as a reference to $5,914.

(6) In the application of section 160aab of the Principal Act as amended by this Act in relation to the year of income that commenced on 1 July 1986, a reference in that section to 29% shall be read as a reference to 29.42%.

(7) Section 160aa of the Principal Act as amended by this Act applies to assessments in respect of income of the year of income that commenced on 1 July 1986 as if—

(a) paragraph (1) (d) were omitted and the following paragraph were substituted:

“(d) the additional tax amount in relation to the taxpayer in relation to the year of income exceeds the sum of—

(i) 15% of the qualifying 15% amount (if any) in relation to the taxpayer in relation to the year of income;

(ii) 24.42% of the qualifying 24.42% amount (if any) in relation to the taxpayer in relation to the year of income;

(iii) 26.5% of the qualifying 26.5% amount (if any) in relation to the taxpayer in relation to the year of income;

(iv) 29.42% of the qualifying 29.42% amount (if any) in relation to the taxpayer in relation to the year of income; and

(v) 30% of so much (if any) of the relevant income amount in relation to the taxpayer in relation to the year of income as exceeds the sum of the amounts referred to in sub-paragraphs (i) to (iv) (inclusive),”;

(b) the definitions of “qualifying 24% amount” and “qualifying 29% amount” were omitted from sub-section (2) and the following definitions were substituted:

“ ‘qualifying 24.42% amount’ means—

(a) where the taxpayer is a resident taxpayer in relation to the year of income and the notional (non-lump sum) taxable income does not exceed $12,500—the amount (if any) by which the lesser of $12,500 and the non-15% taxable income exceeds the notional (non-lump sum) taxable income; and

(b) in any other case—nil;

‘qualifying 26.5% amount’ means—

(a) where the taxpayer is a resident taxpayer in relation to the year of income and the notional (non-lump sum) taxable income does not exceed $12,600—the amount (if any) by which the lesser of $12,600 and the non-15% taxable income exceeds the sum of the notional (non-lump sum) taxable income and the qualifying 24.42% amount (if any); and

(b) in any other case—nil;

‘qualifying 29.42% amount’ means—

(a) where the taxpayer is a resident taxpayer in relation to the year of income and the notional (non-lump sum) taxable income does not exceed $19,500—the amount (if any) by which the lesser of $19,500 and the non-15% taxable income exceeds the sum of the notional (non-lump sum) taxable income, the qualifying 24.42% amount (if any) and the qualifying 26.5% amount (if any);

(b) where the taxpayer is a non-resident taxpayer in relation to the year of income and the notional (non-lump sum) taxable income does not exceed $19,500— the amount (if any) by which the lesser of $19,500 and the non-15% taxable income exceeds the notional (non-lump sum) taxable income; and

(c) the references to $5,100 and Schedule 7 in the definition of “tax threshold” in sub-section (2) were respectively references to $4,890 and Schedule 1.

(8) The amendment of section 221ac of the Principal Act made by this Act applies in relation to the year of income that commenced on 1 July 1986 and in relation to all subsequent years of income.

(9) The amendment of section 221zb of the Principal Act made by this Act applies to mining payments made or applied on or after 1 December 1986.

Application of amendment of the Income Tax (Mining Withholding Tax) Act 1979

5. The amendment of section 6 of the Income Tax (Mining Withholding Tax) Act 1979 made by this Act applies to mining payments made or applied on or after 1 December 1986.

Application of amendment of the Income Tax (Rates) Act 1982

6. The amendment of Part II of Schedule 24 to the Income Tax (Rates) Act 1982 made by this Act applies to assessments in respect of income of the year of income that commenced on 1 July 1985.

Application of amendment of the Trust Recoupment Tax Act 1985

7. (1) The amendment of section 5 of the Trust Recoupment Tax Act 1985 made by this Act applies to assessments in respect of primary taxable amounts, or secondary taxable amounts, in relation to the year of income that commenced on 1 July 1986 and all subsequent years of income.

(2) In the application of section 5 of the Trust Recoupment Tax Act 1985 in relation to the year of income that commenced on 1 July 1986, the reference in paragraph (a) of that section to 49% shall be read as a reference to 57.08%.

Application of amendment of the Trust Recoupment Tax Assessment Act 1985

8. (1) The amendment of section 6 of the Trust Recoupment Tax Assessment Act 1985 made by this Act applies to assessments in respect of secondary taxable amounts in relation to the year of income that commenced on 1 July 1986 and all subsequent years of income.

(2) In the application of sub-section 6 (3) of the Trust Recoupment Tax Assessment Act 1985 in relation to the year of income that commenced on 1 July 1986, the reference in that sub-section to 2.04 shall be read as a reference to 1.75.

SCHEDULE Section 3

AMENDMENTS OF ACTS

Income Tax Assessment Act 1936

Sub-section 159p (3a)—

Omit “30%”, substitute “29%”.

Sub-section 159zk (1)—

Omit “30%”, substitute “29%”.

Paragraphs 160aaa (1) (g) and (h)—

Omit “$5,595”, substitute “$6,142”.

Sub-section 160aaa (2)—

Omit the sub-section, substitute the following sub-section:

“(2) Subject to sub-section (3), where the assessable income of a taxpayer of a year of income includes an amount paid by way of—

(a) a benefit under Part VII of the Social Security Act 1947;

(b) a benefit received as a grant of Tertiary Education Assistance under the Student Assistance Act 1973; or

the taxpayer is entitled in his or her assessment in respect of income of the year of income to a rebate of tax of—

(d) where, at any time during the year of income, the taxpayer was married—

(i) if the taxable income of the taxpayer of the year of income does not exceed $9,436—$280; and

(ii) if the taxable income of the taxpayer of the year of income exceeds $9,436—$280 reduced by 12.5 cents for each $1 of the amount of the excess; and

(e) in any other case—

(i) if the taxable income of the taxpayer of the year of income does not exceed $5,669—$190; and

(ii) if the taxable income of the taxpayer of the year of income exceeds $5,669—$190 reduced by 12.5 cents for each $1 of the amount of the excess.”.

Sub-section 160aab (2)—

Omit “30 per cent”, substitute “29%”.

Sub-sections 160aab (3), (4), (5), (5a) and (6)—

Omit “30%”, substitute “29%”.

Sub-section 160aab (7)—

Omit the sub-section.

Paragraph 160aa (1) (b)—

Omit “$4,595”, substitute “the tax threshold”.

SCHEDULE—continued

Paragraph 160aa (1) (d)—

Omit the paragraph, substitute the following paragraph:

“(d) the additional tax amount in relation to the taxpayer in relation to the year of income exceeds the sum of—

(i) 15% of the qualifying 15% amount (if any) in relation to the taxpayer in relation to the year of income;

(ii) 24% of the qualifying 24% amount (if any) in relation to the taxpayer in relation to the year of income;

(iii) 29% of the qualifying 29% amount (if any) in relation to the taxpayer in relation to the year of income; and

(iv) 30% of so much (if any) of the relevant income amount in relation to the taxpayer in relation to the year of income as exceeds the sum of the amounts referred to in sub-paragraphs (i), (ii) and (iii),”.

Sub-section 160aa (2) (definition of “non-resident taxpayer”)—

Omit “Income Tax (Rates) Act 1982”, substitute “Income Tax Rates Act 1986”.

Sub-section 160aa (2) (definition of “qualifying 25% amount”)—

Omit the definition, substitute the following definitions:

“ ‘qualifying 24% amount’ means—

(b) in any other case—nil;

‘qualifying 29% amount’ means—

(b) where the taxpayer is a non-resident taxpayer in relation to the year of income and the notional (non-lump sum) taxable income does not exceed $19,500—the amount (if any) by which the lesser of $19,500 and the non-15% taxable income exceeds the notional (non-lump sum) taxable income; and

Sub-section 160aa (2) (definition of “relevant income amount”)—

Omit “$4,595” (wherever occurring), substitute “the tax threshold”.

Sub-section 160aa (2) (definition of “resident taxpayer”)—

Omit “Income Tax (Rates) Act 1982”, substitute “Income Tax Rates Act 1986”.

Sub-section 160aa (2)—

Add at the end the following definition:

“ ‘tax threshold’ means $5,100 or, where by reason of the application of section 20 of the Income Tax Rates Act 1986 in relation to the taxpayer that Act applies as if the reference in the table in Part I of Schedule 7 to that Act to $5,100 were a reference to a different amount, that different amount.”.

SCHEDULE—continued

Sub-section 160zyo (1)—

Omit “of” (first occurring), substitute “or”.

Sub-section 221ac (2)—

Omit the sub-section, substitute the following sub-section:

“(2) Instalments of tax are not payable in respect of the income of a year of income unless an Act imposing income tax on taxable incomes of companies of the year of income or the preceding year of income provides that instalments of tax are payable in respect of income of the first-mentioned year of income in accordance with the provisions of this Division.”.

Sub-section 221zb (1)—

Omit “6%”, substitute “5.8%”.

Income Tax (Bearer Debentures) Act 1971

Paragraph 6 (b)—

Omit sub-paragraphs (ii) and (iii), substitute the following sub-paragraphs:

“(ii) in relation to an amount of interest paid or credited on or after 6 December 1974 and before 23 November 1983—55%;

(iii) in relation to an amount of interest paid or credited on or after 23 November 1983 and before 1 December 1986—60%;

(iv) in relation to an amount of interest paid or credited on or after 1 December 1986 and before 1 July 1987—55%; or

(v) in relation to an amount of interest paid or credited on or after 1 July 1987— 49%.”.

Income Tax (Mining Withholding Tax) Act 1919

Section 6—

Omit “6%”, substitute “5.8%”.

Income Tax (Rates) Act 1982

Sub-section 3 (1) (paragraph (b) of the definition of “prescribed non-resident”)—

Omit “all subsequent”, substitute “the next 2 succeeding”.

Section 5—

Omit “all subsequent”, substitute “the next 3 succeeding”.

Heading to Part V—