Income Tax Regulations (Amendment) (Cth)

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Statutory Rules 1996

No. 133 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 28 June 1996.

WILLIAM DEANE

Governor-General

By His Excellency’s Command,

JIM SHORT

Assistant Treasurer

____________

1. Commencement

1.1 These Regulations commence on 1 July 1996.

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) (definition of “shading out point”):

Omit:

,”,

substitute:

,” .

4. Regulation 71 (Income tax instalment amounts)

4.1 Subregulation 71 (3):

After “paragraphs 72 (1) (c),”, insert “72A (1) (c), 72A (1) (e),”.

4.2 After paragraph 71 (3) (a), insert:

“(aa)
in the case of an employee to whom paragraph 72A (1) (c) applies—the factor specified in column 3 of the item in table 1A that is applicable to the employee;
(ab)
in the case of an employee to whom paragraph 72A (1) (e) applies—the factor specified in column 3 of the item in table 1B that is applicable to the employee;”.

4.3 After paragraph 71 (3) (h), insert:

“(ha)
in the case of an employee to whom paragraph 72A (1) (c) applies—the amount specified in column 4 of the item in table 1A that is applicable to the employee;
(hb)
in the case of an employee to whom paragraph 72A (1) (e) applies—the amount specified in column 4 of the item in table 1B that is applicable to the employee;”.

4.4 Paragraph 71 (3) (m):

Omit “or”.

4.5 Paragraph 71 (3) (n):

Omit the paragraph, substitute:

“(n)
in the case of an employee to whom regulation 81 applies, not being a prescribed non-resident—the factor specified in column 3 of the last item in table 4; or
(o)
in the case of an employee to whom regulation 81 applies, being a prescribed non-resident—the factor specified in column 3 of the last item in table 5.”.

5. Regulation 72 (Rate of deductions—employee claiming general exemption only and employee, not being a prescribed person, claiming general exemption and Medicare levy variation)

5.1 Subregulation 72 (1):

After “regulation” (first occurring), insert “72A or”.

5.2 Paragraph 72 (2) (a):

Omit “$263”, substitute “$266”.

5.3 Paragraph 72 (2) (b):

Omit “$263”, substitute “$266”.

5.4 Paragraph 72 (2) (b):

Omit “0.015”, substitute “0.017”.

5.5 Paragraph 72 (2) (c):

Omit:

“B¥ 0.015 - (A - B) ¥ 0.185”.

substitute:

“B¥ 0.017 - (A - B) ¥ 0.183”.

6. New regulation 72A

6.1 After regulation 72, insert:

Rate of deductions—members of the Defence Force etc.

“72A. (1) Subject to this Subdivision, if an employee to whom section 8A of the Medicare Levy Act 1986 applies (other than an employee to whom regulation 81 applies) has furnished to his or her employer:

(a)
a declaration referred to in paragraph 70 (4) (a), not being a declaration to the effect that he or she is a prescribed non-resident or in which he or she has claimed a concessional rebate in respect of a dependant; and
(b)
under regulation 86, a Medicare levy variation declaration that, by virtue of regulation 90, 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 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:

(c)
if paragraph (d), (e), or (f) does not apply—the amount that, in accordance with regulation 71, 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 the employee has stated in his or her Medicare levy variation declaration that he or she has a dependent spouse or one, or more than one, dependent child and the relevant amount of earnings of the employee in respect of that week or part of a week is not less than $243 but is less than the amount that is the shading out point in relation to the employee—the amount equal to the difference between:
(i)
the amount that, but for this paragraph, would have been ascertained under paragraph (c) in respect of the employee; and
(ii)
the amount that, in accordance with subregulations (2) and (4), is, in relation to the employee, the Medicare levy adjustment amount 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 a person to whom section 8A of the Medicare Levy Act 1986 applies; or
(ii)
one, or more than one, dependent child who is not a prescribed person or a person to whom section 8A of the Medicare Levy Act 1986 applies;
and paragraph (f) does not apply—the amount that, in accordance with regulation 71, 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
(f)
if the employee has:
(i)
a dependent spouse who is not a prescribed person or a person to whom section 8A of the Medicare Levy Act 1986 applies; or
(ii)
one, or more than one, dependent child who is not a prescribed person or a person to whom section 8A of the Medicare Levy Act 1986 applies;
and the relevant amount of earnings of the employee in respect of that week or part of a week is not less than $411 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 (e) in respect of the employee; and
(iv)
the amount that, in accordance with subregulations (3) and (4), is, in relation to the employee, the Medicare levy adjustment amount in respect of that week or part of a week.

“(2)Subject to subregulation (4), 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 $266—the amount in dollars and cents ascertained in accordance with the formula:
(A- 243.72) ¥ 0.0235; or
(b)
if the relevant amount of earnings of the employee in respect of that week or part of a week is not less than $266 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:
A
¥ 0.002; 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:
(B¥ 0.002) - ((A- B) ¥ 0.0215);

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)Subject to subregulation (4), the amount that is, in relation to an employee to whom paragraph (1) (f) 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 $449—the amount in dollars and cents ascertained in accordance with the formula:
(A- 411.5) ¥ 0.1118; or
(b)
if the relevant amount of earnings of the employee in respect of that week or part of a week is not less than $449 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:
A
¥ 0.0095; 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:
(B¥ 0.0095)- ((A- B)¥ 0.1023);

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.

“(4)If the number of cents included in an amount ascertained in accordance with a formula referred to in subregulation (2) or (3):

(a)
is not a whole number; or
(b)
is a whole number that is not a multiple of 5;

there must 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 of cents that is a multiple of 5; or
(d)
if that number of cents is a number that is, or ends in, 2.5 or 7.5, the next higher whole number that is a multiple of 5.”.

7. Regulation 73 (Rate of deductions—employee, being a prescribed person, claiming general exemption and Medicare levy variation)

7.1 Paragraph 73 (2) (a):

Omit “$444”, substitute “$449”.

7.2 Paragraph 73 (2) (b):

Omit “$444”, substitute “$449”.

7.3 Paragraph 73 (2) (b):

Omit “0.0075”, substitute “0.0085”.

7.4 Paragraph 73 (2) (c):

Omit:

“B¥ 0.0075 - (A - B) ¥ 0.0925”.

substitute:

“B¥ 0.0085 - (A - B) ¥ 0.0915”.

8. New regulation 74A

8.1 After regulation 74, insert:

Rate of deductions—member of Defence Force etc. claiming a rebate in respect of a dependant

“74A. Subject to this Subdivision, if an employee to whom section 8A of the Medicare Levy Act 1986 applies (other than an employee to whom regulation 81 applies) has furnished to his or her employer a declaration referred to in paragraph 70 (4) (a) in which he or she has claimed the general exemption and a concessional rebate in respect of a dependant, 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:

(a)
the amount that would, in accordance with regulation 72A, be the prescribed rate in respect of those deductions if that regulation applied to the employee; and
(b)
an amount (being a multiple of 5 cents) calculated in accordance with the formula:
CR
¥ 1.9 per cent;
where CR is the total concessional rebate amount.”.

9. Regulation 77 (Rate of deductions—employee who has not furnished a declaration)

9.1 Omit “73, 74,”, substitute “72A, 73, 74, 74A,”.

10. Regulation 79 (Rate of deductions where employee is a resident of a zone area)

10.1 Omit “73, 74”, substitute “72A, 73, 74, 74A”.

11. Regulation 80 (Rate of deductions—employee in receipt of retirement amounts etc.)

11.1 Omit “31.5”, substitute “31.7”.

12. Regulation 82 (Rate of deductions where eligible lump sum is included)

12.1 Omit “22.5”, substitute “22.7”.

13. Regulation 86 (Furnishing of Medicare levy variation declaration)

13.1 After subregulation 86 (2), insert:

“(2A) If:

(a)
before the end of the last pay period ending before 1 July 1996, a person to whom section 8A of the Medicare Levy Act 1986 applies had furnished to his or her employer a Medicare levy variation declaration under subregulation (1); and
(b)
immediately before 1 July 1996, the declaration had not ceased to have effect;

this Subdivision applies, on and after 1 July 1996 until a further Medicare levy variation declaration is furnished, in relation to that person as if, at the time when the declaration referred to in paragraph (a) was furnished:

(c)

the person was not a prescribed person; and

(b)
the declaration was furnished under subregulation (2).”.

14. Regulation 87 (Certain members of Defence Force to be deemed to have furnished Medicare levy variation declaration)

14.1 Omit the regulation, substitute:

Certain members of Defence Force to be taken to have furnished Medicare levy variation declaration

“87. If, during the 1996-97 year of income, a person is, on a date, entitled by reason that he or she is a member of the Defence Force to free medical treatment in respect of every incapacity, disease or disabling condition and the person:

(a)
has not on or before that date furnished a Medicare levy variation declaration in accordance with subregulation 86 (2); or
(b)
is not a person to whom subregulation 86 (2A) applies;

this Subdivision applies in relation to that person as if he or she had, on that date, furnished a Medicare levy variation declaration in accordance with subregulation 86 (2) claiming partial relief from Medicare levy under paragraph 72A (1) (e) and that declaration had effect for the purposes of this Subdivision.”.

15. Regulation 93 (Effect of certificate)

15.1 Subregulation 93 (1):

Omit “73, 74,”, substitute “72A, 73, 74, 74A,”.

16. Regulation 98 (Rates of deduction—ETP)

16.1 Subregulation 98 (1) (Table, Column 4 heading):

Omit “1 July 1995 or later”, substitute “1 July 1996”.

16.2 Subregulation 98 (1) (Table):

The Table is amended as set out in the following table:

Column 1 Item being amended	Column 2 Omit	Column 3 Substitute
1	21.5	21.7
3	16.5	16.7
4	31.5	31.7
5	16.5	16.7
6	31.5	31.7
7	16.5	16.7
8	31.5	31.7

17. Schedule 3 (Tables to be used in calculation of income tax instalment amounts in relation to employees)

17.1 Omit the Schedule, substitute:

“SCHEDULE 3 Regulation 71

TABLES TO BE USED IN CALCULATION OF INCOME TAX INSTALMENT AMOUNTS IN RELATION TO EMPLOYEES

TABLE

1—EMPLOYEES TO WHOM PARAGRAPH 72 (1) (c) 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 $98.99	0	0
2	Exceeding $98.99 but not exceeding $242.99	0.2031	20.1900
3	Exceeding $242.99 but not exceeding $265.99	0.4062	69.6945
4	Exceeding $265.99 but not exceeding $391.99	0.2204	20.2074
5	Exceeding $391.99 but not exceeding $723.99	0.3570	73.7546
6	Exceeding $723.99 but not exceeding $954.99	0.4470	138.9700
7	Exceeding $954.99	0.4870	177.1854

SCHEDULE 3—continued

TABLE

1A—EMPLOYEES TO WHOM PARAGRAPH

72A (1) (c) 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 $98.99	0	0
2	Exceeding $98.99 but not exceeding $242.99	0.2031	20.1928
3	Exceeding $242.99 but not exceeding $265.99	0.2270	26.0180
4	Exceeding $265.99 but not exceeding $391.99	0.2051	20.1850
5	Exceeding $391.99 but not exceeding $723.99	0.3420	73.8498
6	Exceeding $723.99 but not exceeding $954.99	0.4320	139.0652
7	Exceeding $954.99	0.4720	162.8655

TABLE

1B—EMPLOYEES TO WHOM PARAGRAPH

72A (1) (e) 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 $98.99	0	0
2	Exceeding $98.99 but not exceeding $391.99	0.2031	20.1900

SCHEDULE 3—continued

Column 1	Column 2	Column 3	Column 4
Item No.	Range in respect of relevant amount of earnings of employee	Factor	Amount $
3	Exceeding $391.99 but not exceeding $410.99	0.3400	73.8576
4	Exceeding $410.99 but not exceeding $448.99	0.4518	119.8633
5	Exceeding $448.99 but not exceeding $723.99	0.3495	73.8578
6	Exceeding $723.99 but not exceeding $954.99	0.4395	139.0732
7	Exceeding $954.99	0.4795	177.2886

TABLE 2—EMPLOYEES TO WHOM PARAGRAPH

73 (1) (c) 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 $98.99	0	0
2	Exceeding $98.99 but not exceeding $391.99	0.2031	20.19
3	Exceeding $391.99 but not exceeding $723.99	0.3400	73.86
4	Exceeding $723.99 but not exceeding $954.99	0.4300	139.07
5	Exceeding $954.99	0.4700	177.29

SCHEDULE 3—continued

TABLE

3—EMPLOYEES TO WHOM PARAGRAPH

73 (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 $98.99	0	0
2	Exceeding $98.99 but not exceeding $391.99	0.2031	20.1900
3	Exceeding $391.99 but not exceeding $410.99	0.3400	73.8576
4	Exceeding $410.99 but not exceeding $448.99	0.4400	115.0076
5	Exceeding $448.99 but not exceeding $723.99	0.3485	73.8590
6	Exceeding $723.99 but not exceeding $954.99	0.4385	139.0744
7	Exceeding $954.99	0.4785	177.2898

TABLE

4—EMPLOYEES TO WHOM REGULATION 77 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 $106.99	0.2170	0.2170
2	Exceeding $106.99 but not exceeding $439.99	0.3570	15.2939

SCHEDULE 3—continued

Column 1	Column 2	Column 3	Column 4
Item No.	Range in respect of relevant amount of earnings of employee	Factor	Amount $
3	Exceeding $439.99 but not exceeding $670.99	0.4470	54.9285
4	Exceeding $670.99	0.4870	81.7747

TABLE 5—EMPLOYEES TO WHOM REGULATION 78 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 $397.99	0.29	0.29
2	Exceeding $397.99 but not exceeding $729.99	0.34	20.19
3	Exceeding $729.99 but not exceeding $960.99	0.43	85.96
4	Exceeding $960.99	0.47	124.42”.

18. Application

18.1 The amendments made by these Regulations apply in relation to the 1996-97 year of income.

NOTES

1. Notified in the Commonwealth of Australia Gazette on 28 June 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 and 124.

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