Income Tax (First Home Saver Accounts Misuse Tax) Act 2008
No. 46, 2008 as amended
Compilation start date: 25 June 2014
Includes amendments up to: Act No. 44, 2014
About this compilation
This compilation
This is a compilation of the Income Tax (First Home Saver Accounts Misuse Tax) Act 2008 as in force on 25 June 2014. It includes any commenced amendment affecting the legislation to that date.
This compilation was prepared on 2 July 2014.
The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of each amended provision.
Uncommenced amendments
The effect of uncommenced amendments is not reflected in the text of the compiled law but the text of the amendments is included in the endnotes.
Application, saving and transitional provisions for provisions and amendments
If the operation of a provision or amendment is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.
Modifications
If a provision of the compiled law is affected by a modification that is in force, details are included in the endnotes.
Provisions ceasing to have effect
If a provision of the compiled law has expired or otherwise ceased to have effect in accordance with a provision of the law, details are included in the endnotes.
Contents
1 Short title
2 Commencement
3 Definitions
4 Imposition of tax
5 Amount of tax
6 Clawback tax amount
7 Non‑recognised Government FHSA contributions
8 Temporary budget repair levy
Endnotes
Endnote 1—About the endnotes
Endnote 2—Abbreviation key
Endnote 3—Legislation history
Endnote 4—Amendment history
Endnote 5—Uncommenced amendments [none]
Endnote 6—Modifications [none]
Endnote 7—Misdescribed amendments [none]
Endnote 8—Miscellaneous [none]
An Act to impose income tax in respect of certain payments from first home saver accounts
1 Short title
This Act may be cited as the Income Tax (First Home Saver Accounts Misuse Tax) Act 2008.
2 Commencement
This Act commences on the day after it receives the Royal Assent.
3 Definitions
In this Act:
adjusted maximum tax rate means the sum of:
(a) the maximum rate specified in column 2 of the table in Part I of Schedule 7 to the Income Tax Rates Act 1986; and
(b) 2%.
family law obligation has the meaning given by the First Home Saver Accounts Act 2008.
FHSA has the meaning given by the First Home Saver Accounts Act 2008.
FHSA eligibility requirements has the meaning given by the First Home Saver Accounts Act 2008.
FHSA ineligibility payment has the meaning given by the First Home Saver Accounts Act 2008.
FHSA payment conditions has the meaning given by the First Home Saver Accounts Act 2008.
FHSA tax rate means the rate specified in paragraphs 23(3)(aa) and 23(3A)(a) and section 30 of the Income Tax Rates Act 1986.
Government FHSA contribution has the meaning given by the First Home Saver Accounts Act 2008.
hold: an individual holds an FHSA in the circumstances mentioned in section 9 of the First Home Saver Accounts Act 2008.
non‑recognised Government FHSA contribution has the meaning given by section 7.
personal FHSA contribution has the meaning given by the First Home Saver Accounts Act 2008.
4 Imposition of tax
The tax known as income tax, to the extent that it is payable in accordance with section 345‑100 of the Income Tax Assessment Act 1997, is imposed in respect of a payment from an FHSA held by an individual.
5 Amount of tax
(1) If the payment is an FHSA ineligibility payment (but satisfies the FHSA payment conditions) the amount of the tax is the sum of:
(a) the clawback tax amount for the FHSA (see section 6); and
(b) the sum of each non‑recognised Government FHSA contribution (see section 7) of the individual that is payable for a financial year that began before the payment is made.
(2) If the payment fails to satisfy the FHSA payment conditions, the amount of the tax is the sum of:
(a) the clawback tax amount for the FHSA (see section 6); and
(b) the sum of each Government FHSA contribution of the individual that is payable for a financial year that began before the payment mentioned in section 4 is made.
6 Clawback tax amount
(1) The clawback tax amount for the FHSA is the amount worked out under subsection (2) multiplied by the percentage worked out under subsection (3).
(2) Work out the amount using the following formula:
where:
earnings component of the FHSA means the balance of the FHSA just before the time the payment is made, reduced (but not below zero) by:
(a) the amount of personal FHSA contributions made before that time to an FHSA held by the individual; and
(b) the amount (if any) paid by way of Government FHSA contributions before that time to an FHSA held by the individual; and
(c) the amount (if any) of contributions made before that time to an FHSA held by the individual because of a family law obligation.
payment fraction means:
(a) if the payment is of the balance of the FHSA—1; or
(b) otherwise—the amount of the payment divided by the balance of the FHSA just before the payment is made.
(3) The percentage is the adjusted maximum tax rate reduced by the FHSA tax rate.
7 Non‑recognised Government FHSA contributions
A Government FHSA contribution that is payable for a financial year for an individual is a non‑recognised Government FHSA contribution of the individual if the individual did not satisfy the FHSA eligibility requirements throughout the financial year.
8 Temporary budget repair levy
(1) This section applies to payments from an FHSA made in a temporary budget repair levy year.
(2) Increase the amount of the adjusted maximum tax rate by 2 percentage points for the purpose of working out the clawback tax amount (see section 6) for the FHSA in relation to the payment.
(3) In this section:
temporary budget repair levy year has the same meaning as in section 4‑11 of the Income Tax (Transitional Provisions) Act 1997.
Endnotes
Endnote 1—About the endnotes
The endnotes provide details of the history of this legislation and its provisions. The following endnotes are included in each compilation:
Endnote 1—About the endnotes
Endnote 2—Abbreviation key
Endnote 3—Legislation history
Endnote 4—Amendment history
Endnote 5—Uncommenced amendments
Endnote 6—Modifications
Endnote 7—Misdescribed amendments
Endnote 8—Miscellaneous
If there is no information under a particular endnote, the word “none” will appear in square brackets after the endnote heading.
Abbreviation key—Endnote 2
The abbreviation key in this endnote sets out abbreviations that may be used in the endnotes.
Legislation history and amendment history—Endnotes 3 and 4
Amending laws are annotated in the legislation history and amendment history.
The legislation history in endnote 3 provides information about each law that has amended the compiled law. The information includes commencement information for amending laws and details of application, saving or transitional provisions that are not included in this compilation.
The amendment history in endnote 4 provides information about amendments at the provision level. It also includes information about any provisions that have expired or otherwise ceased to have effect in accordance with a provision of the compiled law.
Uncommenced amendments—Endnote 5
The effect of uncommenced amendments is not reflected in the text of the compiled law but the text of the amendments is included in endnote 5.
Modifications—Endnote 6
If the compiled law is affected by a modification that is in force, details of the modification are included in endnote 6.
Misdescribed amendments—Endnote 7
An amendment is a misdescribed amendment if the effect of the amendment cannot be incorporated into the text of the compilation. Any misdescribed amendment is included in endnote 7.
Miscellaneous—Endnote 8
Endnote 8 includes any additional information that may be helpful for a reader of the compilation.
Endnote 2—Abbreviation key
ad = added or inserted | pres = present |
am = amended | prev = previous |
c = clause(s) | (prev) = previously |
Ch = Chapter(s) | Pt = Part(s) |
def = definition(s) | r = regulation(s)/rule(s) |
Dict = Dictionary | Reg = Regulation/Regulations |
disallowed = disallowed by Parliament | reloc = relocated |
Div = Division(s) | renum = renumbered |
exp = expired or ceased to have effect | rep = repealed |
hdg = heading(s) | rs = repealed and substituted |
LI = Legislative Instrument | s = section(s) |
LIA = Legislative Instruments Act 2003 | Sch = Schedule(s) |
mod = modified/modification | Sdiv = Subdivision(s) |
No = Number(s) | SLI = Select Legislative Instrument |
o = order(s) | SR = Statutory Rules |
Ord = Ordinance | Sub‑Ch = Sub‑Chapter(s) |
orig = original | SubPt = Subpart(s) |
par = paragraph(s)/subparagraph(s) /sub‑subparagraph(s) |
|
Endnote 3—Legislation history
Act | Number and year | Assent | Commencement | Application, saving and transitional provisions |
Income Tax (First Home Saver Accounts Misuse Tax) Act 2008 | 46, 2008 | 25 June 2008 | 26 June 2008 |
|
Income Tax (First Home Saver Accounts Misuse Tax) Amendment (DisabilityCare Australia) Act 2013 | 40, 2013 | 28 May 2013 | Schedule 1: 28 May 2013 (see s. 2(1)) | Sch. 1 (item 2) |
Income Tax (First Home Saver Accounts Misuse Tax) Amendment (Temporary Budget Repair Levy) Act 2014 | 44, 2014 | 25 June 2014 | Sch 1: 25 June 2014 (see s 2(1)) | — |
Endnote 4—Amendment history
Provision affected | How affected |
s. 3..................... | am. No. 40, 2013 |
s 8..................... | ad No 44, 2014 |
Endnote 5—Uncommenced amendments [none]
Endnote 6—Modifications [none]
Endnote 7—Misdescribed amendments [none]
Endnote 8—Miscellaneous [none]