Income Tax Regulations (Amendment) (Cth)

Statutory Rules 1982 No. 280 1

Income Tax Regulations2 (Amendment)

I, T H E G O V E R N O R - G E N E R A L of the C o m m o n w e a l t h of Austral ia, act ing wi th the advice of the Federa l Execut ive Counci l, hereby m a k e the following

Regula t ions under the Income Tax Assessment Act 1936.

D a t e d 21 Oc tobe r 1982.

N. M. S T E P H E N

Governor -Genera l

By His Excel lency 's C o m m a n d,

J O H N H O W A R D

Treasure r

Commencement

1. These Regula t ions shall c o m e into opera t ion on 1 November 1982.

Preservation of existing declarations

2. W h e r e, before the c o m m e n c e m e n t of these Regulat ions, an employee

has furnished to his employer or to the Commiss ioner a declarat ion unde r

Subdivision AA of Division 2 of Pa r t VI of the Income T a x Regulat ions as in.

force before the c o m m e n c e m e n t of these Regula t ions (being a declarat ion tha t had not, before the c o m m e n c e m e n t of these Regula t ions, ceased to have effect for t he purposes of tha t Subdivis ion), t ha t declara t ion shall have effect as if it had been so furnished on the da te of c o m m e n c e m e n t of these Regulat ions and had been m a d e unde r and for the purposes of tha t Subdivision as amended by

"Subdivision AA—Home loan interest".

these Regula t ions.

Heading to Subdivision AA of Division 2 of Part VI

3. T h e heading to Subdivision AA of Division 2 of Par t VI of the Income

T a x Regula t ions is omi t t ed a n d the following heading subst i tuted:

956	Income Tax	1982 No. 280
Interpretation

4. Regulation 54DB of the Income Tax Regulations is amended—

(a) by inserting after the definition of "eligible occupier" in sub-regulation (1) the following definition:

" 'estimated excess home loan interest', in relation to a home loan that is the subject of a declaration under this Subdivision, means the amount calculated in accordance with the formula A — B, where—

A is the amount of interest, calculated at the rate specified in the declaration, payable in the year to which the declaration relates on not more than $60,000 of the amount that the employee estimates to be trie average of the opening and closing unpaid balances of the loan in that year; and

B is the amount that A would be if it were calculated at the

rate of 10% per annum;";

(b) by adding at the end of sub-regulation (1) the following definition:

"; 'relevant interest' has the same meaning as in sub-section

159ZB (2) of the Act";

(c) by omitting sub-regulation (2) and substituting the following sub-regulation:

"(2) Moneys lent to an employee, or to an employee and another person, shall not be regarded as a home loan for the purposes of this Subdivision unless the employee is, at the date on which the declaration is made—

(a)	in the case of a declaration containing the information prescribed in sub-regulation 54DE ( 2 ) — a n eligible occupier; or
(b)	in the case of a declaration containing the information
prescr ibed in sub-regula t ion 54DE ( 2 A ) — a prescr ibed

occupier,

of the dwelling to which the declaration relates."; and

(d) by inserting in sub-regulation (4) "is a resident and he" after "unless he".

5. After regulation 54DB of the Income Tax Regulations the following

regulation is inserted:

Prescribed occupation of dwelling

"54DBA. For the purposes of this Subdivision, an employee shall be taken

to be a prescribed occupier of a dwelling at a particular time if, at that time—

(a)	he occupied the dwelling as his sole or principal residence; and
(b)	he had a relevant interest in the dwelling.".

Income Tax 1982 No. 280 957

Furnishing of declaration and statement

6. Regula t ion 54DC of the Income T a x Regulat ions is a m e n d e d by inserting

in sub-regulat ion (1) "o r es t imated excess h o m e loan in teres t" after " in teres t".

Furnishing of further declaration

7. Regula t ion 54DD of the Income T a x Regulat ions is a m e n d e d —

(a )	by omit t ing from sub-regulat ion (1) " a n d s ta tement, or has received a certificate from the Commiss ioner in accordance with regulation 5 4 D G " and subst i tut ing "con ta in ing the information prescribed in sub-regulat ion 54DE (2 ), together with a s ta tement, or has received a certificate issued unde r regulat ion 54DG in respect of est imated h o m e
loan interes t";
(b )	by inserting in pa rag raph (1) (e) "in respect of es t imated home loan
in te res t " after "Subdivis ion";
(c)	by omi t t ing from pa rag raph (1) (f) " in any other case—";
(d )	by omi t t ing from sub-regulat ion (2) " a n d s ta tement, or has received a certificate from the Commiss ioner in accordance with regulation 54DG" and subst i tut ing "conta in ing the information prescribed in sub-regulat ion 54DE ( 2 ), toge ther wi th a s ta tement, or has received a certificate issued unde r regulat ion 54DG in respect of es t imated h o m e
loan interes t";
(e)	by insert ing after sub-regulat ion (2) the following sub-regulat ions:

" ( 2 A ) W h e r e, p u r s u a n t to this Subdivision, an employee has

furnished to his employer a declara t ion containing the information prescr ibed in sub-regulat ion 54DE ( 2 A ), together wi th a s ta tement, or has received a certificate issued unde r regulat ion 54DG in respect of es t imated excess h o m e loan interest, and the employee ceases to b e —

(a )	a prescr ibed occupier; or
(b)	liable to m a k e h o m e loan r epaymen t s,

he shall, within 14 days of his becoming aware of the c i rcumstances descr ibed in p a r a g r a p h (a ) or ( b ), notify the employer or the Commiss ioner in wri t ing tha t in the employee ' s opinion he is no longer ent i t led to a reduct ion in the prescr ibed ra te of deduct ions under this

Subdivision.

" (2B) W h e r e the prescr ibed ra te of deduct ions is varied unde r

regulat ion 54DJ and an employee desires to have es t imated h o m e loan interest or es t imated excess h o m e loan interest, no t being the t ype of interest in respect of which tha t var ia t ion is m a d e, t aken into accoun t in de te rmin ing the prescr ibed ra te of deduct ions, he may furnish a further dec lara t ion to his employer o r to the Commiss ioner ."; and

(f) by insert ing in sub-regulat ion (3) " a notification unde r sub-regulat ion (2A) or a fur ther dec lara t ion unde r sub-regulat ion ( 2 B ), " after " ( 2 ), ".

Form of declaration

8. Regula t ion 54DE of the Income T a x Regula t ions is a m e n d e d —

(a ) by insert ing in sub-regulat ion (2) " w h e r e the employee desires to have

958 Income Tax 1982 No. 280

estimated home loan interest taken into account in determining the

prescribed rate of deductions," after " ( 1) ,"; and

(b) by inserting after sub-regulation (2) the following sub-regulation:

" ( 2 A ) For the purposes of sub-regulation ( 1 ), where the employee

desires to have estimated excess home loan interest taken into account in determining the prescribed rate of deductions, the following information is prescribed:

(a) the information referred to in paragraphs (2) (a) to (e)

(inclusive) and (g); and

(b) the estimated excess home loan interest.".

Declaration and statement furnished to the Commissioner

9. Regulation 54DG of the Income Tax Regulations is amended by

inserting in paragraph (a) "or estimated excess home loan interest" after

"interest".

Operation of declaration or notification

10. Regulation 54DJ of the Income Tax Regulations is amended—

(a)

by omitting "or notification" (wherever occurring);

(b)

by inserting "or 54DKA" after "54DK";

(c)

by omitting ", notification" (wherever occurring); and

(d)

by adding at the end thereof the following sub-regulation:

" ( 2 ) Where, after furnishing a declaration under regulation 54DC

or 54DD to his employer, an employee furnishes a notification under

prescribed rate of deductions in respect of the matters in that regulation 54DD to the employer, the employer shall cease to vary the

notification not later than the second payment of salary or wages after

the employee furnishes the employer with that notification."

Prescribed rate of deductions reduced by estimated home loan interest

11. Regulation 54DK of the Income Tax Regulations is amended—

(a) by omitting from sub-regulation (1) "Where" and substituting

"Subject to regulation 54DKB, where";

(b)	by inserting in sub-regulation (1) "containing the information
prescribed in sub-regulation 54DE ( 2 ) " after " 5 4 D D "; and
(c)	by omitting from paragraph (1) (a) "0.00608" and substituting

"0.0057".

12. After regulation 54DK of the Income Tax Regulations the following regulations are inserted:

Prescribed rate of deductions reduced by estimated excess home loan interest

"54DK.A. Subject to regulation 54DK.B, where an employee furnishes a

declaration to his employer pursuant to regulation 54DC or 54DD containing the information prescribed in sub-regulation 54DE (2A), the prescribed rate of

Income Tax 1982 No. 280 959

deductions that, but for this regulation, would be applicable shall be reduced by the amount (being a multiple of 5 cents) that is, or is nearest to, the product of 0.0057 and the estimated excess home loan interest specified in the declaration.

Prescribed rate of deductions to be reduced by one amount only

"54DKB. Where, but for this regulation, the prescribed rate of deductions would be reduced by amounts under regulations 54DK. and 54DK.A, the prescribed rate of deductions shall be reduced only by the greater of those amounts.".

NOTES

1. Notified in the Commonwealth of Australia Gazette on 25 October 1982.

2. Statutory Rules 1936 No. 94 as amended to date. For previous amendments see Note 2 to Statutory Rules 1982 No. 115 and see also Statutory Rules 1982 Nos. 115. 128 and 267.