Income Tax Regulations (Amendment) (Cth)

No judgment structure available for this case.

Statutory Rules 1982 No. 1281

__________

Income Tax Regulations2(Amendment)

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 Income Tax Assessment Act 1936.

Dated 4 June 1982.

ZELMAN COWEN

Governor-General

By His Excellency’s Command,

JOHN HOWARD

Treasurer

__________

1. After regulation 54DAN of the Income Tax Regulations the following Subdivision is inserted:

“Subdivision AA—Rebate of tax in respect of home loan interest

Interpretation

“54DB.

(1) In this Subdivision, unless the contrary intention appears—

‘dwelling’ has the same meaning as in section 159ZA of the Act;
‘eligible dependant’, in relation to an employee, has the same meaning as in section 159ZH of the Act;
‘eligible occupier’ has the same meaning as in section 159ZF of the Act;
‘estimated home loan interest’, in relation to a home loan that is the subject of a declaration under this Subdivision, means the amount of interest, being an amount that is a rebatable amount within the meaning of section 159ZJ of the Act, that, having regard to the balance of the loan outstanding, and the interest rate, specified in a declaration furnished by an employee, the employee estimates he will be required to pay to the lender during the financial year to which the declaration relates;
‘first occupation date’, in relation to an employee, has the same meaning as in section 159ZA of the Act;
‘home loan’, in relation to an employee, means moneys lent to the employee, or to the employee and another person, being moneys that are, by virtue of section 159ZD or 159ZE of the Act, deemed to have been applied by the employee for housing purposes;
‘lender’ means—
(a)
the lender of a home loan to an employee or to an employee and another person; or
(b)
a person by whom an amount is, by virtue of section 159ZE of the Act, deemed to have been lent to the employee or to the employee and another person;
‘prescribed rate of deductions’, in relation to an employee, means the prescribed rate of deductions to be made for the purposes of section 221C of the Act by an 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.

“(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, an eligible occupier of the dwelling to which his declaration relates.

“(3)

A reference in this Subdivision to moneys lent to an employee, or to an employee and another person, includes a reference to an amount that is deemed, by virtue of section 159ZE of the Act, to have been so lent.

“(4)

An employee is not eligible for a reduction in the prescribed rate of deductions under this Subdivision in respect of a financial year unless he furnishes a declaration to his employer pursuant to regulation 54DAC, or to the Commissioner pursuant to regulation 54DAH, in respect of that financial year.

Furnishing of declaration and statement

“54DC.

(1) An employee who desires to have estimated home loan interest taken into account in determining the prescribed rate of deductions shall furnish a declaration in duplicate, and a statement, in accordance with these Regulations to his employer or to the Commissioner.

“(2)

A statement furnished with a declaration—

(a)
shall be in accordance with regulation 54DF; and
(b)
shall have been issued by a lender not more than 3 months prior to the date of the declaration.

“(3)

Where a declaration and statement are furnished to an employer by an employee and, during the financial year to which the documents relate, the employee ceases to be employed by the employer, the employer shall cause the statement to be returned to the employee.

“(4)

Where an employee who is employed by more than one employer furnishes a declaration under regulation 54DAC to one of his employers, the employee shall furnish the declaration and statement under this Subdivision to the employer to whom he furnishes the first-mentioned declaration.

Furnishing of further declaration

“54DD.

(1) Where, pursuant to this Subdivision, an employee has furnished to his employer a declaration and statement, or has received a certificate from the Commissioner in accordance with regulation 54DG, and—

(a)
the employee ceases to have an eligible dependant;
(b)
the employee ceases to be an eligible occupier;
(c)
the employee ceases to be liable to make home loan repayments; or
(d)
where the home loan interest is paid by the employee and another eligible occupier of the dwelling—the proportion of the interest paid by the other eligible occupier increases,

the employee shall, within 14 days of his becoming aware of the circumstances described in paragraph (a), (b), (c) or (d)—

(e)
if, in the employee’s opinion, he is no longer entitled to a reduction in the prescribed rate of deductions under this Subdivision—so notify the employer or Commissioner in writing; or
(f)
in any other case—furnish a further declaration in duplicate to his employer or to the Commissioner.

“(2)

Where, pursuant to this Subdivision, an employee has furnished to his employer a declaration and statement, or has received a certificate from the Commissioner in accordance with regulation 54DG, and—

(a)
the employee acquires an eligible dependant; or
(b)
where the home loan interest is paid by the employee and another eligible occupier of the dwelling—the proportion of the interest paid by the employee increases,

the employee may furnish a further declaration to his employer or to the Commissioner.

“(3)

Where an employee who receives a certificate from the Commissioner in accordance with regulation 54DG furnishes a notification or further declaration to the Commissioner pursuant to sub-regulation (1) or (2), the notification or declaration shall be accompanied by the certificate.

Form of declaration

“54DE.

(1) A declaration under this Subdivision shall be in accordance with a form provided by the Commissioner, shall contain the prescribed information and shall be signed by the employee and dated on the day on which it is made.

“(2)

For the purposes of sub-regulation (1), the following information is prescribed:

(a)
the financial year to which the declaration relates;
(b)
the name, occupation and residential address of the employee;
(c)
the name of the lender of the home loan to which the declaration relates;
(d)
the amount of the home loan outstanding at the relevant date;
(e)
the interest rate on the home loan at the relevant date;
(f)
the estimated home loan interest;
(g)
the address of the dwelling to which the declaration relates;
(h)
the first occupation date of a dwelling, in relation to the employee, and the address of that dwelling;
(i)
whether another eligible occupier of the dwelling to which the declaration relates pays interest on the home loan in the financial year to which the declaration relates and, if so—
(i)
the name of the person; and
(ii)
the proportion of the interest paid by that person; and
(j)
whether or not the employee has an eligible dependant.

“(3)

For the purposes of this regulation, the relevant date has the same meaning as in regulation 54DF.

Form of statement

“54DF.

(1) A lender shall, as soon as practicable after receiving a request from an employee, furnish the employee with a written statement specifying—

(a)
the name of the lender;
(b)
the name and address of the employee or, if the loan was made to the employee and another person, the names and addresses of the persons to whom the loan was made;
(c)
the address of the dwelling in connection with which the loan was made;
(d)
the amount of the loan that remains to be paid by the employee or by the employee and the other person at the relevant date; and
(e)
the rate per centum at which interest is charged in respect of the loan at the relevant date.

“(2)

For the purposes of sub-regulation (1), the relevant date is a date specified by the lender in the statement, being a date occurring within the period of 3 months immediately preceding the date on which the lender receives a request to furnish a statement.

Declaration and statement furnished to the Commissioner

“54DG.

The Commissioner may, after receiving a statement and declaration furnished by an employee pursuant to regulation 54DC, or a declaration or notification furnished by an employee pursuant to regulation 54DD, issue to the employee a certificate specifying—

(a)
that the employee desires to have estimated home loan interest taken into account in determining the prescribed rate of deductions;
(b)
the variation of the prescribed rate of deductions to be made; and
(c)
the financial year to which the certificate relates.

Effect of certificate

“54DH.

(1) Where—

(a)
an employee lodges with his employer a certificate issued by the Commissioner pursuant to regulation 54DG;
(b)
the employee is employed by that employer for 4 or more days in any week; and
(c)
week, the certificate remains lodged with that employer,

that certificate shall have effect during that week for the purposes of regulation 54DJ.

“(2)

Where, after having lodged a certificate with his employer, the employee requests that it be returned, the employer shall cause the certificate to be returned to the employee.

Operation of declaration or notification

“54DJ.

Where an employee—

(a)
furnishes an employer with a declaration and statement pursuant to regulation 54DC, or a declaration or notification pursuant to regulation 54DD; or
(b)
lodges a certificate in accordance with regulation 54DH,

the employer shall vary the prescribed rate of deductions in accordance with regulation 54DK, or in accordance with the certificate issued under regulation 54DG, as the case requires, during the period that commences on the date of the first payment of salary or wages after the date on which the declaration or notification is received, or the certificate is lodged, in the financial year to which the declaration, notification or certificate relates, and ends on the date of—

(c)
the last payment of salary or wages before 1 July in the financial year following that to which the declaration, notification or certificate relates;
(d)
the first payment of salary or wages after the date on which the employee requests the return of the certificate lodged with the employer; or
(e)
the first payment of salary or wages after the date on which the employee furnishes the employer with a declaration or notification pursuant to regulation 54DD,

whichever first occurs.

Rate of rebate

“54DK.

(1) Where an employee furnishes a declaration to his employer pursuant to regulation 54DC or 54DD, the prescribed rate of deductions that would, but for this regulation, be applicable shall be reduced by—

(a)
the amount (being a multiple of 5 cents) that is, or is nearest to, the product of 0.00608 and the estimated home loan interest specified in the declaration; or
(b)
the prescribed amount,

whichever is the less.

“(2)

For the purposes of sub-regulation (1), where home loan interest is paid otherwise than by an employee and another eligible occupier of the dwelling and the first occupation date of the employee occurred during a period specified in Column 1 of Table A in Schedule 4, the prescribed amount is—

(a)
in respect of the financial year that commences on 1 July 1982—
(i)
where the employee has no eligible dependant—the amount specified in Column 2 of that Table; and
(ii)
in any other case—the amount specified in Column 3 of the Table,
opposite to the period during which the first occupation date occurred;
(b)
in respect of the financial year that commences on 1 July 1983—
(i)
where the employee has no eligible dependant—the amount specified in Column 4 of that Table; and
(ii)
in any other case—the amount specified in Column 5 of that Table,
opposite to the period during which the first occupation date occurred;
(c)
in respect of the financial year that commences on 1 July 1984—
(i)
where the employee has no eligible dependant—the amount specified in Column 6 of that Table; and
(ii)
in any other case—the amount specified in Column 7 of that Table,
opposite to the period during which the first occupation date occurred;
(d)
in respect of the financial year that commences on 1 July 1985—
(i)
where the employee has no eligible dependant—the amount specified in Column 8 of that Table; and
(ii)
in any other case—the amount specified in Column 9 of that Table,
opposite to the period during which the first occupation date occurred; and
(e)
in respect of the financial year that commences on 1 July 1986—
(i)
where the employee has no eligible dependant—the amount specified in Column 10 of that Table; and
(ii)
in any other case—the amount specified in Column 11 of that Table,
opposite to the period during which the first occupation date occurred.

“(3)

For the purposes of sub-regulation (1), where home loan interest is paid otherwise than by an employee and another eligible occupier of the dwelling and the first occupation date of the employee occurs during a period specified in Column 1 of Table B in Schedule 4, being a period that commences on or after 1 July 1982 and ends before 1 July 1985, the prescribed amount is—

(a)
in respect of the period that commences on the first occupation date and ends on the next succeeding 30 June—
(i)
where the employee has no eligible dependant—the amount specified in Column 2 of that Table; and
(ii)
in any other case—the amount specified in Column 3 of that Table,
opposite to the period during which the first occupation date occurs;
(b)
in respect of the financial year during which the first anniversary of the first occupation date occurs—
(i)
where the employee has no eligible dependant—the amount specified in Column 4 of that Table; and
(ii)
in any other case—the amount specified in Column 5 of that Table,
opposite to the period during which the first occupation date occurs;
(c)
in respect of the financial year during which the second anniversary of the first occupation date occurs—
(i)
where the employee has no eligible dependant—the amount specified in Column 6 of that Table; and
(ii)
in any other case—the amount specified in Column 7 of that Table,
opposite to the period during which the first occupation date occurs;
(d)
in respect of the financial year during which the third anniversary of the first occupation date occurs—
(i)
where the employee has no eligible dependant—the amount specified in Column 8 of that Table; and
(ii)
in any other case—the amount specified in Column 9 of that Table,
opposite to the period during which the first occupation date occurs;
(e)
in respect of the financial year during which the fourth anniversary of the first occupation date occurs—
(i)
where the employee has no eligible dependant—the amount specified in Column 10 of that Table; and
(ii)
in any other case—the amount specified in Column 11 of that Table,
opposite to the period during which the first occupation date occurs; and
(f)
in respect of the financial year during which the fifth anniversary of the first occupation date occurs—
(i)
where the employee has no eligible dependant—the amount specified in Column 12 of that Table; and
(ii)
in any other case—the amount specified in Column 13 of that Table,
opposite to the period during which the first occupation date occurs.

“(4)

For the purposes of sub-regulation (1), where home loan interest is paid by an employee and another eligible occupier of the dwelling, the prescribed amount is the amount calculated in accordance with the formula , where—

R is the amount that would, if the home loan interest were paid otherwise than by the employee and another eligible occupier, be the amount ascertained in accordance with sub-regulation (2) or (3), as the case requires;
E is the estimated home loan interest; and
T is the total home loan interest that the employee estimates will be paid by himself and the other eligible occupier in the financial year to which the declaration relates.

“(5) Where the first occupation date occurs in a year that is a leap year—

(a)
a reference in Column 1 of Table B in Schedule 4 to the period from and including 17 January to and including 13 February shall be read as a reference to the period from and including 17 January to and including 14 February; and
(b)
a reference in that Column to the period from and including 14 February to and including 16 March shall be read as a reference to the period from and including 15 February to and including 16 March.
Employer to forward employees’ declarations to Deputy Commissioner

“54DL.

Where an employee furnishes a declaration to an employer pursuant to regulation 54DC or 54DD, the employer shall—

(a)
within 28 days after receiving the declaration, or within such further time as the Commissioner determines and notifies to the employer, sign the original copy of the declaration and forward that copy to an office of a Deputy Commissioner; and
(b)
within 28 days after the end of the financial year to which the declaration relates, forward the duplicate copy of the declaration and, where the employee has furnished a statement to the employer pursuant to regulation 54DC, that statement, to the Deputy Commissioner to whom the original copy of the declaration was furnished.”.

Schedule 4

2.

After the Third Schedule to the Income Tax Regulations the following Schedule is inserted—

SCHEDULE 4 Regulation 54DK

TABLE A

Column 1 Period during which first occupation date occurred		Column 2 No eligible dependant	Column 3 Eligible dependant	Column 4 No eligible dependant	Column 5 Eligible dependant	Column 6 No eligible dependant	Column 7 Eligible dependant	Column 8 No eligible dependant		Column 9 Eligible dependant		Column 10 No eligible dependant		Column 11 Eligible dependant
From and including	to and including	$	$	$	$	$	$		$		$		$	$
1.7.77	30.6.78	1.90	5.70
1.7.78	30.6.79	3.80	7.60	1.90	5.70
1.7.79	30.6.80	5.70	9.50	3.80	7.60	1.90	5.70
1.7.80	30.6.81	7.60	11.40	5.70	9.50	3.80	7.60		1.90		5.70
1.7.81	30.6.82	9.50	13.30	7.60	11.40	5.70	9.50		3.80		7.60		1.90	5.70

TABLE B

Column 1 Period during which first occupation date occurs		Column 2 No eligible dependant		Column 3 Eligible dependant	Column 4 No eligible dependant	Column 5 Eligible dependant	Column 6 No eligible dependant	Column 7 Eligible dependant	Column 8 No eligible dependant	Column 9 Eligible dependant	Column 10 No eligible dependant	Column 11 Eligible dependant	Column 12 No eligible dependant	Column 13 Eligible dependant
From and including	to and including		$	$	$	$	$	$	$	$	$	$	$	$
1 July	16 July		9.50	13.30	7.60	11.40	5.70	9.50	3.80	7.60	1.90	5.70
17 July	16 August		9.50	13.30	7.75	11.55	5.85	9.65	3.95	7.75	2.05	5.85	0.15	0.45
17 August	15 September		9.50	13.30	7.90	11.70	6.00	9.80	4.10	7.90	2.20	6.00	0.30	0.95
16 September	16 October		9.50	13.30	8.05	11.85	6.15	9.95	4.25	8.05	2.35	6.15	0.45	1.40
17 October	15 November		9.50	13.30	8.25	12.05	6.35	10.15	4.45	8.25	2.55	6.35	0.65	1.90
16 November	16 December		9.50	13.30	8.40	12.20	6.50	10.30	4.60	8.40	2.70	6.50	0.80	2.35
17 December	16 January		9.50	13.30	8.55	12.35	6.65	10.45	4.75	8.55	2.85	6.65	0.95	2.85
17 January	13 February		9.50	13.30	8.70	12.50	6.80	10.60	4.90	8.70	3.00	6.80	1.10	3.30
14 February	16 March		9.50	13.30	8.85	12.65	6.95	10.75	5.05	8.85	3.15	6.95	1.25	3.80
17 March	15 April		9.50	13.30	9.00	12.80	7.10	10.90	5.20	9.00	3.30	7.10	1.40	4.25
16 April	16 May		9.50	13.30	9.20	13.00	7.30	11.10	5.40	9.20	3.50	7.30	1.60	4.75
17 May	15 June		9.50	13.30	9.35	13.15	7.45	11.25	5.55	9.35	3.65	7.45	1.75	5.20
16 June	30 June		9.50	13.30	7.60	11.40	5.70	9.50	3.80	7.60	1.90	5.70

NOTES

1. Notified in the Commonwealth of Australia Gazette on 8 June 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

Actions

Download as PDF Download as Word Document

Citations

Income Tax Regulations (Amendment) (Cth)

Cases Citing This Decision

0

Cases Cited

0

Statutory Material Cited

0