Tax Laws Amendment (2007 Budget Measures) Act 2007 (Cth)

Tax Laws Amendment (2007 Budget Measures) Act 2007

No. 75, 2007

An Act to amend the law relating to taxation, and for related purposes

Contents

Tax Laws Amendment (2007 Budget Measures) Act 2007

No. 75, 2007

An Act to amend the law relating to taxation, and for related purposes

[Assented to 21 June 2007]

The Parliament of Australia enacts:

1Short title

This Act may be cited as the Tax Laws Amendment (2007 Budget Measures) Act 2007.

2Commencement

This Act commences on the day on which it receives the Royal Assent.

3Schedule(s)

Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1Budget taxation measuresPart 1Dependent spouse tax offset

Income Tax Assessment Act 1936

1

Sub‑subparagraph 23AB(7)(a)(ii)(D)

Omit all the words after “159J(2)”, substitute “(ignoring subsections 159J(1AA), (3AA) and (3AB)) if subsection 159J(1B) also included a reference to any dependant included in class 1 of that table and the amount applicable to class 1 of that table were $2,440”.

2

Subsection 79A(4) (paragraph (d) of the definition of relevant rebate amount)

Omit all the words after “159J(2)”, substitute “(ignoring subsections 159J(1AA), (3AA) and (3AB)) if subsection 159J(1B) also included a reference to any dependant included in class 1 of that table and the amount applicable to class 1 of that table were $2,440”.

3

Subsection 79B(6) (paragraph (d) of the definition of concessional rebate amount)

Omit all the words after “159J(2)”, substitute “(ignoring subsections 159J(1AA), (3AA) and (3AB)) if subsection 159J(1B) also included a reference to any dependant included in class 1 of that table and the amount applicable to class 1 of that table were $2,440”.

4

Subsection 159HA(7) (definition of indexable amount)

Repeal the definition, substitute:

indexable amount means:

1. (a)

   an amount specified in subsection 159J(1B) or (2) (other than the amounts specified in column 3 of the table in subsection 159J(2) in respect of a dependant included in class 3 or 4); or

2. (b)

   the amounts specified in subsection 159L(2); or

3. (c)

   the amount specified in:

   1. (i)

      sub‑subparagraph 23AB(7)(a)(ii)(D); or

   2. (ii)

      paragraph (d) of the definition of relevant rebate amount in subsection 79A(4); or

   3. (iii)

      paragraph (d) of the definition of concessional rebate amount in subsection 79B(6);

or, if any such amount has been altered under this section in relation to the 2008‑09 year of income or a later year of income, the altered amount.

5

Subsection 159HA(7) (definition of indexing year of income)

Repeal the definition, substitute:

indexing year of income means the year of income commencing on 1 July 2008 or a later year of income.

6

Subsection 159J(1B)

Omit “references in that table to $1,000 were references to $1,200”, substitute “the reference in that table to $1,711 were a reference to $2,051”.

7

Subsection 159J(2) (table)

Repeal the table, substitute:

Column 1 Class	Column 2 Dependant	Column 3 Amounts of Rebate
1	Spouse of the taxpayer	$2,100
2	Child‑housekeeper	$1,711
3	Child less than 21 years of age (not being a student)	In respect of 1 such child—$376
In respect of each other such child—$282
4	Student	$376
5	Invalid relative	$770
6	Parent of the taxpayer or of the taxpayer’s spouse	$1,540

8

Paragraphs 159K(1)(a) and (b)

Omit “$940” (wherever occurring), substitute “$1,607”.

9

Subsection 159K(2)

Omit “$940”, substitute “$1,607”.

10

Paragraph 159K(3)(b)

Omit “$940”, substitute “$1,607”.

11

Paragraph 159L(2)(a)

Omit “$1,200”, substitute “$2,051”.

12

Paragraph 159L(2)(b)

Omit “$1,000”, substitute “$1,711”.

13

Application of amendments

The amendments made by this Part apply to assessments for the 2007‑2008 year of income and later years of income.

Part 2Medicare levy and Medicare levy surchargeA New Tax System (Medicare Levy SurchargeFringe Benefits) Act 1999

14

Paragraphs 15(1)(c) and 16(2)(c)

Omit “$16,284”, substitute “$16,740”.

Medicare Levy Act 1986

1. 15

   Subsection 3(1) (paragraph (b) of the definition of phase‑in limit)

   Omit “$21,170”, substitute “$25,455”.

2. 16

   Subsection 3(1) (paragraph (c) of the definition of phase‑in limit)

   Omit “$17,604”, substitute “$19,694”.

3. 17

   Subsection 3(1) (paragraph (b) of the definition of threshold amount)

   Omit “$19,583”, substitute “$21,637”.

4. 18

   Subsection 3(1) (paragraph (c) of the definition of threshold amount)

   Omit “$16,284”, substitute “$16,740”.

5. 19

   Subsection 8(5) (definition of family income threshold)

   Omit “$27,478”, substitute “$28,247”.

6. 20

   Subsection 8(5) (definition of family income threshold)

   Omit “$2,523”, substitute “$2,594”.

21

Subsections 8(6) and (7)

Omit “$27,478”, substitute “$28,247”.

22

Paragraph 8D(3)(c)

Omit “$16,284”, substitute “$16,740”.

23

Subparagraph 8D(4)(a)(ii)

Omit “$16,284”, substitute “$16,740”.

24

Paragraph 8G(2)(c)

Omit “$16,284”, substitute “$16,740”.

25

Subparagraph 8G(3)(a)(ii)

Omit “$16,284”, substitute “$16,740”.

26

Application of amendments

The amendments made by this Part apply to assessments for the 2006‑2007 year of income and later years of income.

[Minister’s second reading speech made in—

House of Representatives on 10 May 2007

Senate on 12 June 2007]

(79/07)