Tax Laws Amendment (2007 Budget Measures) Act 2007

Administered by Department of the Treasury

Legislation au C2007A00075 In force Act

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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

1 Short title

2 Commencement

3 Schedule(s)

Schedule 1—Budget taxation measures

Part 1—Dependent spouse tax offset

Income Tax Assessment Act 1936

Part 2—Medicare levy and Medicare levy surcharge

A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999

Medicare Levy Act 1986

 

 

 

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:

1  Short title

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

2  Commencement

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

3  Schedule(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  Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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 1—Budget taxation measures

Part 1—Dependent 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:

 (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

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

 (c) the amount specified in:

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

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

 (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 2—Medicare levy and Medicare levy surcharge

A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999

14  Paragraphs 15(1)(c) and 16(2)(c)

Omit “$16,284”, substitute “$16,740”.

Medicare Levy Act 1986

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

Omit “$21,170”, substitute “$25,455”.

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

Omit “$17,604”, substitute “$19,694”.

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

Omit “$19,583”, substitute “$21,637”.

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

Omit “$16,284”, substitute “$16,740”.

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

Omit “$27,478”, substitute “$28,247”.

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)

 

Overview

The Tax Laws Amendment (2007 Budget Measures) Act 2007 was enacted by the Parliament of Australia with the primary objective of amending existing taxation laws. This legislation was introduced to address certain fiscal measures outlined in the 2007 Budget. The Act includes modifications to the Income Tax Assessment Act 1936 and the Medicare Levy Act 1986, among others, to adjust tax rates, thresholds, and offsets in line with budgetary priorities. The amendments made by the Act are designed to take effect from specified years of income, ensuring that taxpayers are affected from the intended commencement dates as detailed in the Schedules of the Act. The policy objective behind this legislation was to implement various fiscal measures that align with the government's budgetary framework, ensuring that income tax and Medicare levy rates are updated to reflect economic conditions and policy decisions. This Act is a critical tool in managing the fiscal policy of the country by adjusting tax liabilities and ensuring the efficient collection of revenue.

Scope and Application

The Tax Laws Amendment (2007 Budget Measures) Act 2007 applies to individuals and entities subject to taxation under the Commonwealth of Australia, with specific amendments to various taxation laws including the Income Tax Assessment Act 1936, the A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999, and the Medicare Levy Act 1986. The amendments primarily adjust monetary thresholds and values for the 2007-2008 and subsequent years of income, affecting the calculation of the dependent spouse tax offset and the Medicare levy and surcharge. This Act does not explicitly state any exclusions, exemptions, or thresholds beyond the specified amendments. The application of these amendments is set out in the respective sections of the Act, with Part 1 applying to the 2007-2008 year of income and later years, while Part 2 applies to the 2006-2007 year of income and later years. The Act may be further extended or restricted through subordinate instruments, which are not detailed within the provided text.

Key Provisions

The Tax Laws Amendment (2007 Budget Measures) Act 2007 (the Act) introduces several amendments to the taxation laws, primarily through the Income Tax Assessment Act 1936 and the A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999. It includes adjustments to the dependent spouse tax offset and modifies thresholds for the Medicare levy and the Medicare levy surcharge. For the 2007-2008 year of income and subsequent years, the Act updates the indexable amount for the dependent spouse tax offset, replacing references to previous amounts with new figures. It also revises the indexing year of income, now starting from the year commencing on 1 July 2008. The Act imposes specific obligations on taxpayers and the Australian Taxation Office (ATO). For instance, taxpayers must ensure they correctly apply the updated figures in their assessments and declarations. The ATO, in turn, is required to implement these changes and provide updated guidelines to assist taxpayers in complying with the new provisions. This includes updating their systems and providing necessary information through their website and other communication channels. Non-compliance with the Act's provisions can result in civil consequences. For example, taxpayers who fail to accurately reflect the updated figures in their tax returns may be subject to penalties and interest on any underpaid tax. Additionally, the Act may allow the ATO to impose administrative penalties where taxpayers do not meet their obligations. The precise penalties and consequences depend on the nature and extent of the non-compliance, but they may include fines and interest on unpaid taxes. The Act does not explicitly state maximum penalties, but penalties are generally governed by the applicable tax legislation and can vary based on the specific circumstances of non-compliance.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.