Tax Laws Amendment (Income Tax Rates) Act 2012

Administered by Department of the Treasury

Legislation au C2012A00060 In force Act

Legislation content

Tax Laws Amendment (Income Tax Rates) Act 2012

No. 60,  2012 as amended

Compilation start date:   28 June 2013

Includes amendments up to: Act No. 88, 2013

 

About this compilation

This compilation

This is a compilation of the Tax Laws Amendment (Income Tax Rates) Act 2012 as in force on 28 June 2013. It includes any commenced amendment affecting the legislation to that date.

This compilation was prepared on 20 September 2013.

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 Schedule(s)

Schedule 1—Non‑resident personal tax rates

Part 1—Amendments applying from the 2012‑13 year of income

Income Tax Rates Act 1986

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 amend the Income Tax Rates Act 1986, and for related purposes

1  Short title

  This Act may be cited as the Tax Laws Amendment (Income Tax Rates) Act 2012.

2  Commencement

 (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

1.  Sections 1 to 3 and anything in this Act not elsewhere covered by this table

The day this Act receives the Royal Assent.

21 June 2012

2. Schedule 1, Part 1

The day this Act receives the Royal Assent.

21 June 2012

Note:  This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

 (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

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—Non‑resident personal tax rates

Part 1—Amendments applying from the 2012‑13 year of income

Income Tax Rates Act 1986

1  Subsection 3(1)

Insert:

second resident personal tax rate means the rate mentioned in item 2 of the table in clause 1 of Part I of Schedule 7.

2  Subparagraph 15(2)(a)(i)

Repeal the subparagraph, substitute:

 (i) the amount ascertained by applying the second resident personal tax rate to that eligible taxable income; or

2A  Paragraph 15(2)(b)

Omit “$732”, substitute “$663”.

3  Subparagraph 15(2)(b)(i)

Repeal the subparagraph, substitute:

 (i) the amount ascertained by applying the second resident personal tax rate to $416, and then adding 66% of the amount by which that eligible taxable income exceeds $416; or

4  Subparagraph 15(4)(c)(i)

Repeal the subparagraph, substitute:

 (i) the amount ascertained by applying the second resident personal tax rate to the amount of the eligible part of that share; or

4A  Paragraph 15(4)(d)

Omit “$732”, substitute “$663”.

5  Subparagraph 15(4)(d)(i)

Repeal the subparagraph, substitute:

 (i) the amount ascertained by applying the second resident personal tax rate to $416, and then adding 66% of the amount by which the eligible part of that share exceeds $416; or

5A  Paragraph 15(6)(b)

Omit “$732”, substitute “$663”.

6  Clause 1 of Part II of Schedule 7 (table)

Repeal the table, substitute:

Tax rates for non‑resident taxpayers

Item

For the part of the ordinary taxable income of the taxpayer that:

The rate is:

1

does not exceed $80,000

The second resident personal tax rate

2

exceeds $80,000 but does not exceed $180,000

37%

3

exceeds $180,000

45%

7  Clause 1A of Part II of Schedule 7 (note)

Repeal the note, substitute:

Note 1: This clause will be repealed on 1 July 2016. See Part 2 of Schedule 2 to the Tax Laws Amendment (2011 Measures No. 7) Act 2011.

Note 2: In the 2011‑12 year of income, the rate applicable under item 1 of the table was 29%.

8  Application provision

The amendments made by this Part apply to the 2012‑2013 year of income and later years of income.

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

Tax Laws Amendment (Income Tax Rates) Act 2012

60, 2012

21 June 2012

21 June 2012

 

Tax and Superannuation Laws Amendment (2013 Measures No. 1) Act 2013

88, 2013

28 June 2013

Sch 7 (items 234, 235): Royal Assent

—

 

Endnote 4—Amendment history

 

Provision affected

How affected

s 2.....................

am No 88, 2013

Sch 1

 

Pt 2....................

rep No 88, 2013

item 9...................

rep No 88, 2013

item 10..................

rep No 88, 2013

 

Endnote 5—Uncommenced amendments [none]

Endnote 6—Modifications [none]

Endnote 7—Misdescribed amendments [none]

Endnote 8—Miscellaneous [none]

 

Overview

The Tax Laws Amendment (Income Tax Rates) Act 2012, enacted on 21 June 2012, was introduced by the Parliament of Australia to amend the Income Tax Rates Act 1986. This Act primarily aims to adjust the income tax rates applicable to non-resident taxpayers, ensuring that the tax system remains fair and effective in addressing the economic conditions of the time. The amendments introduced by this Act were designed to provide a more balanced approach to taxation for non-residents, aligning with the policy objective of maintaining a competitive and equitable tax environment. This legislative change was part of broader fiscal policy measures aimed at managing the nation's revenue and economic stability.

Scope and Application

The Tax Laws Amendment (Income Tax Rates) Act 2012 amends the Income Tax Rates Act 1986 to alter the tax rates applicable to non-resident personal income, effective from the 2012-13 income year. The Act applies to individuals and entities deriving income from Australian sources that are not residents of Australia for tax purposes. The changes include a reduction in the tax rate for the portion of non-resident ordinary taxable income exceeding $80,000, down to 37% for income between $80,000 and $180,000, and 45% for income exceeding $180,000. These amendments were enacted to align with the broader tax reform measures and to address fiscal policy objectives. The Act applies across the Commonwealth of Australia and is enforced under the federal tax system. While the Act itself does not specify exclusions, exemptions, or thresholds, subordinate instruments or further legislation may provide additional detail or exceptions.

Key Provisions

The Tax Laws Amendment (Income Tax Rates) Act 2012 (sections 1 to 3 and anything not elsewhere covered by the table) received the Royal Assent on 21 June 2012 and commenced on that date. Schedule 1, Part 1 of the Act, which amends the non-resident personal tax rates, also commenced on 21 June 2012. These amendments apply to the 2012-2013 year of income and later years of income. The key changes include the introduction of a new second resident personal tax rate, changes to the calculation of certain tax amounts, and modifications to the tax rates for non-resident taxpayers. The Act imposes specific obligations on taxpayers, particularly those who are non-residents. It requires non-residents to apply the new tax rates to their eligible taxable income as specified in the Act. The changes involve calculating the tax liability by applying the second resident personal tax rate to different segments of the income, depending on whether it exceeds certain thresholds. For example, the eligible taxable income up to $80,000 is taxed at the second resident personal tax rate, while income between $80,000 and $180,000 is taxed at 37%, and income exceeding $180,000 is taxed at 45%. These changes necessitate adjustments in the tax return preparation for non-residents to ensure compliance with the new rates. Failure to comply with the provisions of the Act can lead to legal consequences. Although the Act itself does not explicitly state the penalties for non-compliance, breaches of the Income Tax Assessment Act 1936 or similar legislation may result in penalties. Typically, penalties for underpayment or non-payment of tax can include fines, interest on the unpaid tax, and in severe cases, criminal charges for tax evasion. The exact penalties depend on the specific circumstances of the breach and the relevant provisions of the Income Tax Assessment Act 1936.

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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.