Income Tax Regulations (Amendment) (Cth)
I,
THE GOVERNOR-GENERAL of the Commonwealth of Australia, acting with the advice
of the Federal Executive Council, hereby make the following Regulations under
the
Dated 29 October 1986.
N. M. STEPHEN
Governor-General
By His Excellency’s Command,
Paul Keating
Treasurer
_________
(a) by inserting before the definition of “dependant” in sub-regulation (1) the following definition:
“ ‘declare’ means declare in a Medicare levy variation declaration referred to in paragraph 54a (2) (b);”;
(b) by inserting after the definition of “dependant rebate value” in sub-regulation (1) the following definitions:
“ ‘dependent child’, in relation to an employee, means any person who, being—
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(S.R. 346/86)—Cat. No. 10/24.10.1986
(a) a child of the employee who is less than 16 years of age; or
(b) a child of the employee who, being not less than 16 years of age but less than 25 years of age, is receiving full-time education at a school, college or university,
is to be taken to be a dependant of the employee for the purposes of Part VIIb of the Act;
“ ‘dependent spouse’, in relation to an employee, means any person who, being the spouse of the employee (within the meaning of Part VIIb of the Act), is to be taken to be a dependant of the employee for the purposes of that Part;”;
(c) by omitting from the definition of “general exemption” in sub-regulation (1) “$85.99” and substituting “$93.99”;
(d) by omitting the definition of “prescribed non-resident” in sub-regulation (1) and substituting the following definition:
“ ‘prescribed non-resident’, in relation to any period within a year of income, means a person who, at all times during that period, is a non-resident, not being a person to whom, at any time during that year of income, a pension, allowance or benefit in respect of which the person is liable to be assessed and to pay income tax in Australia is, or was, payable under—
(a)
the
(b) sub-section 4 (6)
of the Veterans’ Entitlements ( Transitional Provisions and Consequential Amendments ) Act 1986 ;(c) a provision of the
Social Security Act 1947 other than Part VII of that Act; or(d) the
Tuberculosis Act 1948 ;”;(e) by inserting after the definition of “separate net income” in sub-regulation (1) the following definition:
“ ‘shading out point’, in relation to an employee who has declared that he has a dependent spouse, a dependent child or dependent children, means the amount equal to the number of whole dollars in the amount ascertained in accordance with the formula—
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where
A is the amount that is the weekly family income threshold in relation to the employee;”;(f) by omitting from sub-regulation (1) the definition of “specified rebate value”;
(g) by inserting after the definition of “total zone rebate value” in sub-regulation (1) the following definition:
“ ‘weekly family income threshold’, in relation to an employee who has declared that he has a dependent spouse, a dependent child or dependent children, means the amount in dollars ascertained to the nearest second decimal place in accordance with the formula—
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where
A is the amount that is, for the purposes of section 8 of theMedicare Levy Act 1986 , the family income threshold in relation to the employee;”; and(h) by omitting sub-regulations (1aa) and (1a) and substituting the following sub-regulation:
“(1a) In this Subdivision—
(a) a reference to a payment of salary or wages does not include a payment that is an eligible termination payment within the meaning of sub-section 221a (1) of the Act; and
(b) a reference to the relevant amount of earnings of an employee in respect of a week or part of a week is a reference to the amount obtained by adding $0.99 to the number of whole dollars in the aggregate of all amounts of salary or wages (other than an amount referred to in paragraph 54daaa (a), (b) or (c)) that the employee has received or is entitled to receive in respect of that week or part of a week.”.
“54ab. (1) In this regulation, a reference to a table is a reference to a table in the Third Schedule.
“(2) For the purposes of this regulation, an item in a table shall be taken to be applicable to an employee if the relevant amount of earnings of the employee in respect of a week or part of a week is within the range specified in column 2 of that item.
“(3) For the purposes of paragraph 54b (1) (c), 54ba (1) (c) or 54ba (1) (d) or regulation 54d or 54da, the income tax installment amount in relation to an employee in respect of a week or part of a week is, subject to sub-regulation (4), the amount in dollars and cents ascertained in accordance with the formula—
where—
(a) in the case of an employee to whom paragraph 54b (1) (c) applies—the factor specified in column 3 of the item in table 1 that is applicable to the employee;
(b) in the case of an employee to whom paragraph 54ba (1) (c) applies—the factor specified in column 3 of the item in table 2 that is applicable to the employee;
(c) in the case of an employee to whom paragraph 54ba (1) (d) applies—the factor specified in column 3 of the item in table 3 that is applicable to the employee;
(d) in the case of an employee to whom regulation 54d applies—the factor specified in column 3 of the item in table 4 that is applicable to the employee; or
(e) in the case of an employee to whom regulation 54da applies—the factor specified in column 3 of the item in table 5 that is applicable to the employee;
(f) in the case of an employee to whom paragraph 54b (1) (c) applies—the amount specified in column 4 of the item in table 1 that is applicable to the employee;
(g) in the case of an employee to whom paragraph 54ba (1) (c) applies—the amount specified in column 4 of the item in table 2 that is applicable to the employee;
(h) in the case of an employee to whom paragraph 54ba (1) (d) applies—the amount specified in column 4 of the item in table 3 that is applicable to the employee;
(j) in the case of an employee to whom regulation 54d applies—the amount specified in column 4 of the item in table 4 that is applicable to the employee; or
(k) in the case of an employee to whom regulation 54da applies—the amount specified in column 4 of the item in table 5 that is applicable to the employee.
“(4) Where the number of cents included in an amount ascertained in accordance with sub-regulation (3)—
(a) is not a whole number; or
(b) is a whole number that is not a multiple of 5,
there shall be substituted for the number of cents included in that amount—
(c) if paragraph (d) does not apply—the whole number nearest to that number that is a multiple of 5; or
(d) if that number of cents is a number consisting of—
(i) a whole number of cents that is, or ends in, 2 or 7; and
(ii) half a cent,
the next lower whole number that is a multiple of 5.”.
(a) by omitting paragraphs (c) and (d) and substituting the following paragraphs:
“(c) if paragraph (d) does not apply—the amount that, in accordance with regulation 54ab, is, for the purposes of this paragraph, the income tax instalment amount in relation to the employee in respect of that week or part of a week; or
(d) if—
(i) the employee, not being a prescribed person, has furnished to his employer, under regulation 54daca, a Medicare levy variation declaration that, by virtue of regulation 54dag, has effect for the purposes of this Subdivision; and
(ii) the relevant amount of earnings of the employee in respect of that week or part of a week is not less than $151 but is less than the amount that is the shading out point in relation to the employee,
the amount equal to the difference between—
(iii) the amount that, but for this paragraph, would have been ascertained under paragraph (c) in respect of the employee; and
(iv) the amount that, in accordance with sub-regulations (2) and (3), is, in relation to the employee, the Medicare levy adjustment amount in respect of that week or part of a week.”; and
(b) by adding at the end the following sub-regulations:
“(2) Subject to sub-regulation (3), the amount that is, in relation to an employee to whom paragraph (1) (d) applies, the Medicare levy adjustment amount in respect of a week or part of a week is—
(a) if the relevant amount of earnings of the employee in respect of that week or part of a week is less than $161—the amount in dollars and cents ascertained in accordance with the formula—
;
(b) if the relevant amount of earnings of the employee in respect of that week or part of a week is not less than $161 but is less than the amount that is the weekly family income threshold in relation to the employee—the amount in dollars and cents ascertained in accordance with the formula—
; or
(c) if the relevant amount of earnings of the employee in respect of that week or part of a week is not less than the amount that is the weekly family income threshold in relation to the employee—the amount in dollars and cents ascertained in accordance with the formula—
,
where—
A is the relevant amount of earnings of the employee in respect of that week or part of a week; and
“(3) Where the number of cents included in an amount ascertained in accordance with a formula referred to in sub-regulation (2)—
(a) is not a whole number; or
(b) is a whole number that is not a multiple of 5,
there shall be substituted for the number of cents included in that amount—
(c) if paragraph (d) does not apply—the whole number nearest to that amount that is a multiple of 5; or
(d) if that number of cents is a number consisting of—
(i) a whole number of cents that is, or ends in, 2 or 7; and
(ii) half a cent,
the next higher whole number that is a multiple of 5.”.
“54ba. (1) Subject to this Subdivision, where an employee, being a prescribed person, has furnished to his employer—
(a) a declaration referred to in paragraph 54a (2) (a), not being a declaration to the effect that he is a prescribed non-resident or in which he has claimed a concessional rebate in respect of a dependant; and
(b) a Medicare levy variation declaration under regulation 54daca, being a declaration that, by virtue of regulation 54dag, has effect for the purposes of this Subdivision,
the prescribed rate of deductions to be made for the purposes of section 221c of the Act by the employer from payments of salary or wages (other than an amount referred to in paragraph 54daaa (a), (b) or (c)) that the employee receives or is entitled to receive in respect of a week or part of a week is—
(c) if paragraph (d) or (e) does not apply—the amount that, in accordance with regulation 54ab, is, for the purposes of this
paragraph, the income tax instalment amount in relation to the employee in respect of that week or part of a week;
(d) if the employee has—
(i) a dependent spouse who is not a prescribed person; or
(ii) one or more than one dependent child who is not a prescribed person,
and paragraph (e) does not apply—the amount that, in accordance with regulation 54ab, is, for the purposes of this paragraph, the income tax instalment amount in relation to the employee in respect of that week or part of a week; or
(e) if the employee has—
(i) a dependent spouse who is not a prescribed person; or
(ii) one or more than one dependent child who is not a prescribed person,
and the relevant amount of earnings of the employee in respect of that week or part of a week is not less than $253 but is less than the amount that is the shading out point in relation to the employee—the amount equal to the difference between—
(iii) the amount that, but for this paragraph would have been ascertained under paragraph (d) in respect of the employee; and
(iv) the amount that, in accordance with sub-regulations (2) and (3), is, in relation to the employee, the Medicare levy adjustment amount in respect of that week or part of a week.
“(2) Subject to sub-regulation (3), the amount that is, in relation to an employee to whom paragraph (1) (e) applies, the Medicare levy adjustment amount in respect of a week or part of a week is—
(a) if the relevant amount of earnings of the employee in respect of that week or part of a week is less than $269—the amount in dollars and cents ascertained in accordance with the formula—
; (b) if the relevant amount of earnings of the employee in respect of that week or part of a week is not less than $269 but is less than the amount that is the weekly family income threshold in relation to the employee—the amount in dollars and cents ascertained in accordance with the formula—
; or
(c) if the relevant amount of earnings of the employee in respect of that week or part of a week is not less than the amount that is the weekly family income threshold in relation to the employee—the amount in dollars and cents ascertained in accordance with the formula—
,
where—
A is the relevant amount of earnings of the employee in respect of that week or part of a week; and
B is the weekly family income threshold in relation to the employee.
“(3) Where the number of cents included in an amount ascertained in accordance with a formula referred to in sub-regulation (2)—
(a) is not a whole number; or
(b) is a whole number that is not a multiple of 5,
there shall be substituted for the number of cents included in that amount—
(c) if paragraph (d) does not apply—the whole number nearest to that amount that is a multiple of 5; or
(d) if that number of cents is a number consisting of—
(i) a whole number of cents that is, or ends in, 2 or 7; and
(ii) half a cent,
the next higher whole number that is a multiple of 5.”.
7. Regulation 54c of the Principal Regulations is amended—
(a) by inserting “the general exemption and” after “claimed”;
(b) by inserting “the amount equal to the difference between” after “part of a week is”; and
(c) by omitting paragraphs (c) and (d) and substituting the following paragraphs—
“(c) the amount that would, in accordance with regulation 54b, be the prescribed rate in respect of those deductions if that regulation applied to the employee; and
(d) the amount (being a multiple of 5 cents) that is, or is nearest to, the amount ascertained by multiplying 1.9 cents by the number equal to the number of dollars in the amount that is, in the declaration, specified as being the total rebate value in relation to the employee.”.
(a) by inserting “the general exemption and” after “claimed”;
(b) by inserting “the amount equal to the difference between” after “part of a week is”; and
(c) by omitting paragraphs (a), (b) and (c) and substituting the following paragraphs:
“(a) the amount that would, in accordance with regulation 54ba, be the prescribed rate in respect of those deductions if that regulation applied to the employee; and
(b) the amount (being a multiple of 5 cents) that is, or is nearest to, the amount ascertained by multiplying 1.9 cents by the number equal to the number of dollars in the amount that is, in the declaration, specified as being the total rebate value in relation to the employee.”.
(a) by omitting paragraph (1) (e) and substituting the following paragraph:
“(e) his status as a prescribed non-resident,”; and
(b) by omitting from sub-regulation (4) “, not being a prescribed nonresident,”.
(a) by omitting from sub-paragraph (1) (a) (i) “16 cents” and substituting “16.25 cents”;
(b) by omitting from sub-paragraph (1) (a) (ii) “31 cents” and substituting “31.25 cents”; and
(c) by omitting from paragraph (1) (b) “31 cents” and substituting “31.25 cents”.
TABLES TO BE USED IN CALCULATION OF INCOME TAX INSTALMENT AMOUNTS IN RELATION TO EMPLOYEES
TABLE 1—RELATING TO EMPLOYEE TO WHOM PARAGRAPH 54b (1) (c) APPLIES
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TABLE 2—RELATING TO EMPLOYEE TO WHOM PARAGRAPH 54ba (1) (c) APPLIES
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TABLE 3—RELATING TO EMPLOYEE TO WHOM PARAGRAPH 54ba (1) (d) APPLIES
Column 1 | Column 2 | Column 3 | Column 4 |
Item No. | Range in respect of relevant amount of earnings of employee | Factor | Amount |
$ | |||
1 | Not exceeding $93.99.................................................................... | 0 | 0 |
2 | Exceeding $93.99 but not exceeding $237.99 | .244 | 22.95 |
3 | Exceeding $237.99 but not exceeding $251.99 | .295 | 35.0978 |
4 | Exceeding $251.99 but not exceeding $268.99 | .3967 | 60.8076 |
5 | Exceeding $268.99 but not exceeding $367.99 | .3013 | 35.0989 |
6 | Exceeding $367.99 but not exceeding $531.99 | .4362 | 84.8240 |
7 | Exceeding $531.99 but not exceeding $665.99 | .4662 | 100.7932 |
8 | Exceeding $665.99 ....................................................................... | .5562 | 160.8163 |
TABLE 4—RELATING TO EMPLOYEE TO WHOM REGULATION 54d APPLIES
Column 1 | Column 2 | Column 3 | Column 4 |
Item No. | Range in respect of relevant amount of earnings of employee | Factor | Amount |
$ | |||
1 | Not exceeding $131.99................................................................. | .3025 | 0.3025 |
2 | Exceeding $131.99 but not exceeding $295.99 | .4425 | 18.8794 |
3 | Exceeding $295.99 but not exceeding $429.99 | .4725 | 27.7640 |
4 | Exceeding $429.99....................................................................... | .5625 | 66.5332 |
TABLE 5—RELATING TO EMPLOYEE TO WHOM REGULATION 54da APPLIES
Column 1 | Column 2 | Column 3 | Column 4 |
Item No. | Range in respect of relevant amount of earnings of employee | Factor | Amount |
$ | |||
1 | Not exceeding $374.99................................................................. | .29 | 0.29 |
2 | Exceeding $374.99 but not exceeding $537.99 | .43 | 52.79 |
3 | Exceeding $537.99 but not exceeding $672.99 | .46 | 68.94 |
4 | Exceeding $672.99....................................................................... | .55 | 129.52 |
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1.
Notified in the
2. Statutory Rules 1936 No. 94 as amended by 1939 Nos. 6 and 42; 1940 Nos. 138 and 289; 1941 Nos. 120 and 327; 1942 Nos. 339 and 553; 1943 Nos. 80, 127 and 151; 1944 Nos. 90 and 124; 1945 Nos. 12, 85, 169 and 192; 1946 No. 135; 1947 Nos. 77 and 173; 1948 Nos. 115 and 162; 1949 Nos. 25 and 50; 1950 Nos. 63 and 101; 1951 Nos. 136 and 157; 1952 Nos. 89, 90 and 102; 1953 Nos. 55 and 88; 1954 Nos. 11, 99 and 112; 1955 No. 23; 1956 Nos. 34, 35 and 96; 1957 Nos. 39 and 74; 1958 Nos. 27 and 70; 1959 Nos. 25 and 81; 1960 Nos. 44 and 74; 1962 Nos. 15, 44 and 112; 1963 Nos. 53 and 92; 1964 Nos. 74, 121 and 134; 1965 Nos. 133 and 187; 1966 No. 156; 1967 Nos. 112 and 126; 1968 No. 1; 1969 No. 68; 1970 Nos. 43, 126, 168 and 213; 1971 Nos. 120 and 148; 1972 Nos. 48, 50 and 137; 1973 No. 266; 1974 Nos. 193, 226 and 267; 1975 Nos. 88, 89, 99, 101 and 213; 1976 Nos. 115, 188 and 212; 1977 Nos. 77, 107 and 248; 1978 Nos. 85 and 193; 1979 Nos. 126 and 239; 1980 Nos. 86, 137 and 149; 1981 Nos. 116 and 360; 1982 Nos. 115, 128, 267 and 280; 1983 Nos. 79, 87, 111, 213 and 319; 1984 Nos. 172, 286, 408 and 416; 1985 Nos. 26 148, 274 and 278.
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