Tax Bonus for Working Australians Act (No. 2) 2009
No. 5, 2009
An Act to provide for a tax bonus, and for related purposes
Contents
1 Short title
2 Commencement
3 General administration of Act
4 Definitions
5 Entitlement to tax bonus
6 Amount of tax bonus
7 Payment of tax bonus
8 Overpayments etc.
9 General interest charge on overpayment debts
Tax Bonus for Working Australians Act (No. 2) 2009
No. 5, 2009
An Act to provide for a tax bonus, and for related purposes
[Assented to 18 February 2009]
The Parliament of Australia enacts:
1 Short title
This Act may be cited as the Tax Bonus for Working Australians Act (No. 2) 2009.
2 Commencement
This Act commences on the day on which it receives the Royal Assent.
3 General administration of Act
The Commissioner has the general administration of this Act.
4 Definitions
(1) In this Act:
adjusted tax liability has the meaning given by subsection (2).
assessable income has the meaning given by the Income Tax Assessment Act 1997.
Australian resident has the meaning given by the Income Tax Assessment Act 1997.
basic income tax liability means basic income tax liability worked out in accordance with step 2 of the method statement in subsection 4‑10(3) of the Income Tax Assessment Act 1997.
Commissioner means the Commissioner of Taxation.
excepted assessable income has the same meaning as in section 102AE of the Income Tax Assessment Act 1936.
excepted person has the same meaning as in section 102AC of the Income Tax Assessment Act 1936.
general interest charge means the charge worked out under Part IIA of the Taxation Administration Act 1953.
income tax return has the meaning given by the Income Tax Assessment Act 1997.
income year has the meaning given by the Income Tax Assessment Act 1997.
Medicare levy means the Medicare levy imposed by the Medicare Levy Act 1986.
Medicare levy surcharge has the meaning given by the Income Tax Assessment Act 1997.
prescribed person has the same meaning as in section 102AC of the Income Tax Assessment Act 1936.
taxable income has the meaning given by the Income Tax Assessment Act 1997.
tax bonus has the meaning given by subsection 5(1).
tax offset has the meaning given by the Income Tax Assessment Act 1997.
(2) Work out a person’s adjusted tax liability for an income year as follows:
(a) firstly, work out the sum of the following:
(i) the person’s basic income tax liability for that income year;
(ii) the person’s Medicare levy (if any) for that income year;
(iii) the person’s Medicare levy surcharge (if any) for that income year;
(b) next, reduce the amount worked out under paragraph (a) by the sum of the person’s tax offsets (if any) for that income year.
5 Entitlement to tax bonus
(1) A person is entitled to a payment (known as the tax bonus) for the 2007‑08 income year if:
(a) the person is an individual; and
(b) the person is an Australian resident for that income year; and
(c) the person’s adjusted tax liability for that income year is greater than nil; and
(d) the person’s taxable income for that income year does not exceed $100,000; and
(e) the person lodges his or her income tax return for that income year no later than:
(i) unless subparagraph (ii) applies—30 June 2009; or
(ii) if, before the commencement of this Act, the Commissioner deferred the time for lodgment of the return under section 388‑55 in Schedule 1 to the Taxation Administration Act 1953 to a day later than 30 June 2009—that later day.
Exception for persons aged under 18 without employment income etc.
(2) However, the person is not entitled to the tax bonus for the 2007‑08 income year if:
(a) he or she is a prescribed person in relation to that income year and is not an excepted person in relation to that income year; and
(b) his or her assessable income for the income year does not include excepted assessable income.
6 Amount of tax bonus
If a person is entitled to the tax bonus for the 2007‑08 income year, the amount of his or her tax bonus is:
(a) if the person’s taxable income for that income year does not exceed $80,000—$900; or
(b) if the person’s taxable income for that income year exceeds $80,000 but does not exceed $90,000—$600; or
(c) if the person’s taxable income for that income year exceeds $90,000 but does not exceed $100,000—$250.
7 Payment of tax bonus
(1) If the Commissioner is satisfied that a person is entitled to the tax bonus for the 2007‑08 income year, the Commissioner must pay the person his or her tax bonus as soon as practicable after becoming so satisfied.
(2) The Commissioner must pay the tax bonus to the credit of a financial institution account nominated in the person’s income tax return for the 2007‑08 income year for the purposes of section 8AAZLF of the Taxation Administration Act 1953.
(3) However, the Commissioner may direct that the tax bonus be paid to the person in a different way.
(4) If the person has not nominated a financial institution account as mentioned in subsection (2) and the Commissioner has not directed that the tax bonus be paid in a different way, the Commissioner is not obliged to pay the tax bonus to the person until the person does so.
(5) If the Commissioner pays a tax bonus to the credit of an account nominated by a person, the Commissioner is taken to have paid the tax bonus to the person.
8 Overpayments etc.
(1) This section applies if:
(a) the Commissioner pays an amount by way of a tax bonus for a person; and
(b) either:
(i) the person was not entitled to the tax bonus; or
(ii) the amount paid is more than the correct amount of the person’s tax bonus.
(2) The person is liable to repay the following amount to the Commonwealth:
(a) if the person was not entitled to the tax bonus—the whole of the amount referred to in paragraph (1)(a);
(b) if the amount paid is more than the correct amount of the tax bonus—the amount by which the amount paid exceeds the correct amount.
(3) An amount that a person is liable to repay under subsection (2) is due and payable 28 days after the day on which the Commissioner gives him or her a notice in writing of the liability.
9 General interest charge on overpayment debts
(1) If:
(a) a person is liable under subsection 8(2) to repay an amount; and
(b) the whole or a part of the amount remains unpaid after the time by which the amount is due to be paid;
the person is liable to pay general interest charge on the unpaid amount.
(2) A person who is liable under this section to pay general interest charge on an unpaid amount is liable to pay the charge for each day in the period that:
(a) started at the beginning of the day by which the unpaid amount was due to be paid; and
(b) finishes at the end of the last day at the end of which any of the following remains unpaid:
(i) the unpaid amount;
(ii) general interest charge on any of the unpaid amount.
[Minister’s second reading speech made in—
House of Representatives on 12 February 2009
Senate on 13 February 2009]
(21/09)