Income Tax (First Home Saver Accounts Misuse Tax) Act 2008 (Cth)

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Text
2 Commencement
3 Definitions
4 Imposition of tax
5 Amount of tax
6 Clawback tax amount
7 Non-recognised Government FHSA contributions
8 Temporary budget repair levy
Endnotes
Endnote 1—About the endnotes
Endnote 2—Abbreviation key
Endnote 3—Legislation history
Endnote 4—Amendment history
Endnote 5—Uncommenced amendments [none]
Endnote 6—Modifications [none]
Endnote 7—Misdescribed amendments [none]
Endnote 8—Miscellaneous [none]

Income Tax (First Home Saver Accounts Misuse Tax) Act 2008

No. 46, 2008 as amended

Compilation start date:   25 June 2014

Includes amendments up to:            Act No. 44, 2014

About this compilation

This compilation

This is a compilation of the Income Tax (First Home Saver Accounts Misuse Tax) Act 2008 as in force on 25 June 2014. It includes any commenced amendment affecting the legislation to that date.

This compilation was prepared on 2 July 2014.

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of each amended provision.

Uncommenced amendments

The effect of uncommenced amendments is not reflected in the text of the compiled law but the text of the amendments is included in the endnotes.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Modifications

If a provision of the compiled law is affected by a modification that is in force, details are included in the endnotes.

Provisions ceasing to have effect

If a provision of the compiled law has expired or otherwise ceased to have effect in accordance with a provision of the law, details are included in the endnotes.


Contents

1............ Short title............................................................................................. 1

2............ Commencement................................................................................... 1

3............ Definitions.......................................................................................... 1

4............ Imposition of tax................................................................................. 2

5............ Amount of tax..................................................................................... 2

6............ Clawback tax amount.......................................................................... 3

7............ Non‑recognised Government FHSA contributions............................. 3

8............ Temporary budget repair levy............................................................. 4

Endnotes  5

Endnote 1—About the endnotes  5

Endnote 2—Abbreviation key  7

Endnote 3—Legislation history  8

Endnote 4—Amendment history  9

Endnote 5—Uncommenced amendments [none]  10

Endnote 6—Modifications [none]  10

Endnote 7—Misdescribed amendments [none]  10

Endnote 8—Miscellaneous [none]  10


An Act to impose income tax in respect of certain payments from first home saver accounts

1  Short title

                   This Act may be cited as the Income Tax (First Home Saver Accounts Misuse Tax) Act 2008.

2  Commencement

                   This Act commences on the day after it receives the Royal Assent.

3  Definitions

                   In this Act:

adjusted maximum tax rate means the sum of:

(a) the maximum rate specified in column 2 of the table in Part I of Schedule 7 to the Income Tax Rates Act 1986; and

   (b)  2%.

family law obligation has the meaning given by the First Home Saver Accounts Act 2008.

FHSA has the meaning given by the First Home Saver Accounts Act 2008.

FHSA eligibility requirements has the meaning given by the First Home Saver Accounts Act 2008.

FHSA ineligibility payment has the meaning given by the First Home Saver Accounts Act 2008.

FHSA payment conditions has the meaning given by the First Home Saver Accounts Act 2008.

FHSA tax rate means the rate specified in paragraphs 23(3)(aa) and 23(3A)(a) and section 30 of the Income Tax Rates Act 1986.

Government FHSA contribution has the meaning given by the First Home Saver Accounts Act 2008.

hold: an individual holds an FHSA in the circumstances mentioned in section 9 of the First Home Saver Accounts Act 2008.

non‑recognised Government FHSA contribution has the meaning given by section 7.

personal FHSA contribution has the meaning given by the First Home Saver Accounts Act 2008.

4  Imposition of tax

                   The tax known as income tax, to the extent that it is payable in accordance with section 345‑100 of the Income Tax Assessment Act 1997, is imposed in respect of a payment from an FHSA held by an individual.

5  Amount of tax

(1) If the payment is an FHSA ineligibility payment (but satisfies the FHSA payment conditions) the amount of the tax is the sum of:

(a) the clawback tax amount for the FHSA (see section 6); and

(b) the sum of each non‑recognised Government FHSA contribution (see section 7) of the individual that is payable for a financial year that began before the payment is made.

(2) If the payment fails to satisfy the FHSA payment conditions, the amount of the tax is the sum of:

(a) the clawback tax amount for the FHSA (see section 6); and

(b) the sum of each Government FHSA contribution of the individual that is payable for a financial year that began before the payment mentioned in section 4 is made.

6  Clawback tax amount

             (1)  The clawback tax amount for the FHSA is the amount worked out under subsection (2) multiplied by the percentage worked out under subsection (3).

             (2)  Work out the amount using the following formula:

where:

earnings component of the FHSA means the balance of the FHSA just before the time the payment is made, reduced (but not below zero) by:

(a) the amount of personal FHSA contributions made before that time to an FHSA held by the individual; and

(b) the amount (if any) paid by way of Government FHSA contributions before that time to an FHSA held by the individual; and

(c) the amount (if any) of contributions made before that time to an FHSA held by the individual because of a family law obligation.

payment fraction means:

(a) if the payment is of the balance of the FHSA—1; or

(b) otherwise—the amount of the payment divided by the balance of the FHSA just before the payment is made.

(3) The percentage is the adjusted maximum tax rate reduced by the FHSA tax rate.

7  Non‑recognised Government FHSA contributions

A Government FHSA contribution that is payable for a financial year for an individual is a non‑recognised Government FHSA contribution of the individual if the individual did not satisfy the FHSA eligibility requirements throughout the financial year.

8  Temporary budget repair levy

(1) This section applies to payments from an FHSA made in a temporary budget repair levy year.

(2) Increase the amount of the adjusted maximum tax rate by 2 percentage points for the purpose of working out the clawback tax amount (see section 6) for the FHSA in relation to the payment.

             (3)  In this section:

temporary budget repair levy year has the same meaning as in section 4‑11 of the Income Tax (Transitional Provisions) Act 1997.


Endnotes

Endnote 1—About the endnotes

The endnotes provide details of the history of this legislation and its provisions. The following endnotes are included in each compilation:

Endnote 1—About the endnotes
Endnote 2—Abbreviation key
Endnote 3—Legislation history
Endnote 4—Amendment history
Endnote 5—Uncommenced amendments
Endnote 6—Modifications
Endnote 7—Misdescribed amendments
Endnote 8—Miscellaneous

If there is no information under a particular endnote, the word “none” will appear in square brackets after the endnote heading.

Abbreviation key—Endnote 2
The abbreviation key in this endnote sets out abbreviations that may be used in the endnotes.

Legislation history and amendment history—Endnotes 3 and 4
Amending laws are annotated in the legislation history and amendment history.

The legislation history in endnote 3 provides information about each law that has amended the compiled law. The information includes commencement information for amending laws and details of application, saving or transitional provisions that are not included in this compilation.

The amendment history in endnote 4 provides information about amendments at the provision level. It also includes information about any provisions that have expired or otherwise ceased to have effect in accordance with a provision of the compiled law.

Uncommenced amendments—Endnote 5
The effect of uncommenced amendments is not reflected in the text of the compiled law but the text of the amendments is included in endnote 5.

Modifications—Endnote 6

If the compiled law is affected by a modification that is in force, details of the modification are included in endnote 6.

Misdescribed amendments—Endnote 7

An amendment is a misdescribed amendment if the effect of the amendment cannot be incorporated into the text of the compilation. Any misdescribed amendment is included in endnote 7.

Miscellaneous—Endnote 8
Endnote 8 includes any additional information that may be helpful for a reader of the compilation.

Endnote 2—Abbreviation key

ad = added or inserted pres = present
am = amended prev = previous
c = clause(s) (prev) = previously
Ch = Chapter(s) Pt = Part(s)
def = definition(s) r = regulation(s)/rule(s)
Dict = Dictionary Reg = Regulation/Regulations
disallowed = disallowed by Parliament reloc = relocated
Div = Division(s) renum = renumbered
exp = expired or ceased to have effect rep = repealed
hdg = heading(s) rs = repealed and substituted
LI = Legislative Instrument s = section(s)
LIA = Legislative Instruments Act 2003 Sch = Schedule(s)
mod = modified/modification Sdiv = Subdivision(s)
No = Number(s) SLI = Select Legislative Instrument
o = order(s) SR = Statutory Rules
Ord = Ordinance Sub‑Ch = Sub‑Chapter(s)
orig = original SubPt = Subpart(s)

par = paragraph(s)/subparagraph(s)

/sub‑subparagraph(s)

Endnote 3—Legislation history

Act Number and year Assent Commencement Application, saving and transitional provisions
Income Tax (First Home Saver Accounts Misuse Tax) Act 2008 46, 2008 25 June 2008 26 June 2008
Income Tax (First Home Saver Accounts Misuse Tax) Amendment (DisabilityCare Australia) Act 2013 40, 2013 28 May 2013 Schedule 1: 28 May 2013 (see s. 2(1))
Remainder: Royal Assent
Sch. 1 (item 2)
Income Tax (First Home Saver Accounts Misuse Tax) Amendment (Temporary Budget Repair Levy) Act 2014 44, 2014 25 June 2014 Sch 1: 25 June 2014 (see s 2(1))
Remainder: Royal Assent

Endnote 4—Amendment history

Provision affected How affected
s. 3....................................... am. No. 40, 2013
s 8........................................ ad No 44, 2014

Endnote 5—Uncommenced amendments [none]

Endnote 6—Modifications [none]

Endnote 7—Misdescribed amendments [none]

Endnote 8—Miscellaneous [none]


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