Income Tax Regulations (Amendment) (Cth)
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I, The Governor-General of the Commonwealth of Australia, acting with the advice of the
Federal Executive Council, make the following Regulations under the
Dated 27 June 1994.
BILL HAYDEN
Governor-General
By His Excellency’s Command,
GEORGE GEAR
Assistant Treasurer
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1.1 These Regulations commence on 1 July 1994.
2.1 The Income Tax Regulations are amended as set out in these Regulations.
3.1 Subregulation 70 (1):
Insert the following definition:
“
4.1 Subregulation 71 (3):
Omit “paragraph 72 (1) (c), 73 (1) (c) or 73 (1) (d) or regulation 77, 78 or 81,”, substitute “paragraphs 72 (1) (c), 73 (1) (c) and 73 (1) (d), regulations 77, 78 and 81 and paragraph 82B (3) (a),”.
5.1 Add at the end:
If:
(a) an employee is an employee in respect of whom an employment declaration is effective for the purposes of Part VA of the Act; and
(b) the Commissioner determines, under section 202CA of the Act, that the declaration ceases to have effect from a particular day because the employee has an accumulated HEC debt;
subregulation (1) does not apply to the employer until the Commissioner notifies the employer of the making of the Commissioner’s determination, or the employee gives the employer a new employment declaration, whichever occurs first.”.
6.1 After regulation 82A, insert:
(1) This regulation applies in relation to an employee who:
(a) has an accumulated HEC debt; and
(b) makes an employment declaration to his or her employer.
The employee must state in the employment declaration that the employee has the accumulated HEC debt.
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 a week or part of a week (in this subregulation called ‘the relevant amount of earnings’) is the sum of:
(a) 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 the part of that week; and
(b) the relevant amount of earnings:
(i) multiplied by:
(A) if the relevant amount of earnings exceeds amount A referred to in paragraph (4) (a), but does not exceed amount B referred to in paragraph (4) (b)—3%; or
(B) if the relevant amount of earnings exceeds amount B referred to in paragraph (4) (b), but does not exceed amount C referred to in paragraph (4) (c)—4%; or
(C) if the relevant amount of earnings exceeds amount C referred to in paragraph (4) (c)—5%; and
(ii) adjusted in accordance with subregulation (5).
For the purposes of subparagraph (3) (b) (i):
(a) amount A is calculated as follows:
(i) identify the minimum prescribed amount under paragraph 106Q (4) (a) of the
Higher Education Funding Act 1988 for the year of income;(ii) divide the amount by 52.806;
(iii) round the result down to the nearest whole dollar and then add $0.99;
(b) amount B is calculated as follows:
(i) identify the intermediate prescribed amount under paragraph 106Q (4) (b) of the
Higher Education Funding Act 1988 for the year of income;(ii) divide the amount by 52.806;
(iii) round the result down to the nearest whole dollar and then add $0.99;
(c) amount C is calculated as follows:
(i) identify the maximum prescribed amount under paragraph 106Q (4) (c) of the
Higher Education Funding Act 1988 for the year of income;(ii) divide the amount by 52.806;
(iii) round the result down to the nearest whole dollar and then add $0.99.
[
(a) Amount A is $508.99 for the year of income ending on 30 June 1995; and
(b) Amount B is $577.99 for the year of income ending on 30 June 1995; and
(c) Amount C is $808.99 for the year of income ending on 30 June 1995.]
If the number of cents included in an amount calculated under subparagraph (3) (b) (i) is not a whole number, or a whole number that is not a multiple of 5, the number of cents in that amount is to be replaced by:
(a) if the number of cents ends in 2.5 or 7.5—the next lower whole number that is a multiple of 5; or
(b) in any other case—the whole number that is:
(i) nearest to that number of cents; and
(ii) a multiple of 5.”.
7.1 Paragraphs 85 (1) (a), (b) and (c):
Add at the end of each paragraph “or”.
8.1 Subparagraphs 92 (a) (i) and (ii):
Add at the end of each subparagraph “and”.
9.1 Paragraphs 93 (1) (a) and (b):
Add at the end of each paragraph “and”.
9.2 Subparagraph 93 (1) (e) (i):
Add at the end “and”.
10.1 Subregulation 119 (3):
Add at the end:
“; and (c) the value of the tax-free amount of an approved early retirement scheme payment (within the meaning of Subdivision AA of Division 2 of Part III of the Act) that:
(i) relates to the termination of the employment, by the group employer, of the person to whom the certificate is issued; and
(ii) was made during the period covered by the certificate; and
(d) the value of the tax-free amount of a bona fide redundancy payment (within the meaning of Subdivision AA of Division 2 of Part III of the Act) that:
(i) relates to the termination of the employment, by the group employer, of the person to whom the certificate is issued; and
(ii) was made during the period covered by the certificate.”.
11.1 The Income Tax Regulations are amended as set out in the following Table:
Column 1 Provision | Column 2 Omit | Column 3 Substitute |
Subregulation 70 (1) (definition of “general exemption”) | or regulation 82 | or regulation 80A or 82 |
Paragraph 70 (3) (b) | or regulation 82 | or regulation 80A or 82 |
Subregulation 72 (1) | or regulation 82 | or regulation 80A or 82 |
Subregulation 73 (1) | or regulation 82 | or regulation 80A or 82 |
Regulation 74 | or regulation 82 | or regulation 80A or 82 |
Regulation 75 | or regulation 82 | or regulation 80A or 82 |
Regulation 77 | or regulation 82 | or regulation 80A or 82 |
Regulation 78 | or regulation 82 | or regulation 80A or 82 |
Regulation 79 | or regulation 82 | or regulation 80A or 82 |
Subregulation 85 (1) | or regulation 82 | or regulation 80A or 82 |
Subparagraph 92 (a) (i) | or regulation 82 | or regulation 80A or 82 |
Subregulation 93 (1) | or regulation 82 | or regulation 80A or 82 |
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1. Notified in the
Commonwealth of Australia Gazette on 30 June 1994.2. 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. 21, 148, 274 and 278; 1986 No. 325 and Acts Nos. 28, 49 and 112, 1986; Statutory Rules 1987 Nos. 92 and 120; 1988 Nos. 196, 208, 262, 381, 382, 383 and 384 and Act No. 97, 1988; Statutory Rules 1989 Nos. 67, 80, 115, 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 and 195.
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