Income Tax Regulations (Amendment) (Cth)

Statutory Rules 1996

No. 320 1

__________________

Income Tax Regulations 2(Amendment)

I, The Governor-General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following Regulations under the Income Tax Assessment Act 1936.

Dated 20 December 1996.

 WILLIAM DEANE

 Governor-General

By His Excellency’s Command,

C. R. KEMP

Assistant Treasurer

____________

1.   Commencement

1.1   These Regulations commence on 1 January 1997.

2.   Amendment

2.1   The Income Tax Regulations are amended as set out in these Regulations.

3.   Regulation 70 (Interpretation)

3.1   Subregulation 70 (1):

Insert the following definitions:

“‘family tax assistance benefit’, in relation to an employee and a year of income, means the sum of the amounts by which, subject to the Income Tax Rates Act 1986, the amount of $5,400 set out in column 1 of the Table in clause 1 of Part 1 of Schedule 7 of that Act is increased in relation to the employee in respect of the year of income under sections 20C and 20D of that Act, or would be increased in relation to the employee in respect of the year of income under sections 20C and 20D of that Act if those sections applied to the employee;

‘lowest marginal rate of tax’ has the same meaning as in Division 5 of Part II of the Income Tax Rates Act 1986;

‘tax value of family tax assistance benefit’, in relation to an employee and a year of income, means the family tax assistance benefit in relation to the employee for the year of income multiplied by the lowest marginal rate of tax.”.

4.   New regulation 83A

4.1   After regulation 83, insert:

Rate of deductions—employee claiming a family tax assistance benefit

 “83A.(1) Subject to this Subdivision, where:

• (a)

  an employee (other than an employee to whom regulation 81 applies) has given to his or her employer a declaration under subregulation 85 (1); and

• (b)

  in that declaration, the employee has claimed a family tax assistance benefit;

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 80 (a), (b) or (c) or regulation 80A or 82) that the employee receives or is entitled to receive in respect of a week or part of a week is the amount equal to the difference between:

• (c)

  the amount that would, but for this regulation, be the prescribed rate of deductions for that week or part of a week for the employee in accordance with regulation 72, 73, 74, 75 or 79, as the case requires; and

• (d)

  the weekly family tax assistance amount mentioned in subregulation (2).

 “(2) The weekly family tax assistance amount is the amount, in dollars and cents, worked out using the formula:

where:

A is the tax value of the family tax assistance benefit in relation to the employee for the year of income.

 “(3) If the number of cents in an amount worked out using the formula in subregulation (2) is not a whole number that ends in a zero or a 5, the amount must be rounded to the nearest number of whole cents ending in a zero or a 5, and if the amount to be rounded ends in 2.5 or 7.5, rounded up.”.

5.   Regulation 85 (Giving a declaration)

5.1   After paragraph 85 (1) (d), insert:

• “(da)

  a matter mentioned in paragraph (a), (b), (c) or (d) and a family tax assistance benefit; or”

6.   Regulation 89 (Form and contents of declaration)

6.1   Sub-subparagraph 89 (1) (c) (i) (B):

After “sub-subparagraph (A);”, insert “and”.

6.2   After subparagraph 89 (1) (c) (ii), insert:

• “(iia)

  where the employee desires to have a family tax assistance benefit taken into account in determining the prescribed rate of deductions to be made for the purposes of section 221C of the Act—the amount of the tax value of the family tax assistance benefit in relation to the employee for the year of income; and”.

6.3   Subparagraph 89 (1) (c) (iii):

Omit “sub-subparagraph (i) (B) and subparagraph (ii)”, substitute “sub-subparagraph (i) (B), subparagraph (ii) and subparagraph (iia).”.

7.   Regulation 92 (Commissioner’s certificate)

7.1   After subparagraph 92 (a) (iii), insert:

• “(iiia)

  the tax value of the family tax assistance benefit, if any, in relation to the employee; and”.

8.   Regulation 93 (Effect of certificate)

8.1   Omit “78 or 79,”, substitute “78, 79 or 83A,”.

8.2   Paragraph 93 (1) (e):

Add at the end:

• “(iv)

  the tax value of the family tax assistance benefit, if any, in relation to the employee specified in the certificate under subparagraph 92 (a) (iiia) were specified in that declaration under sub-subparagraph 89 (1) (c) (iia); and”.

9.   Regulation 95 (Change in circumstances affecting entitlement)

9.1   Subregulation 95 (1):

Omit “of the Act, with the result that the employee ceases to be entitled to the rebate or the amount of the rebate”, substitute “of the Act or to a family tax assistance benefit, with the result that the employee ceases to be entitled to the rebate or benefit or the amount of the rebate or benefit”.

NOTES

1. Notified in the Commonwealth of Australia Gazette on 20 December 1996.

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 (repealed by 1956 No. 96) 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. 21, 148, 274 and 278; 1986 No. 325; Acts Nos. 28, 49 and 112, 1986; Statutory Rules 1987 Nos. 92 and 120; 1988 Nos. 196, 208, 262, 381, 382, 383 and 384; Act No. 97, 1988; Statutory Rules 1989 Nos. 67, 80, 115 (as amended by 1989 No. 358), 123, 124, 141, 250 and 358; 1990 Nos. 19, 126, 151, 152, 192, 347, 390, 398 and 468; 1991 Nos. 20, 121, 156, 158, 240, 300, 301, 390 and 391; 1992 Nos. 38, 129, 216, 313 and 449; 1993 Nos. 15, 46, 47, 65, 91, 159, 202, 216, 275, 288 and 370; 1994 Nos. 95, 96, 127, 174, 195, 219, 399, 412, 460, 461 and 462; 1995 Nos. 58, 107, 139, 152, 153, 194, 316, 356, 381, 382, 383 and 447; Act No. 30, 1995; Statutory Rules 1996 Nos. 38, 56, 114, 124, 133, 150, 185 and 274.