Tax Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Act 2004
Act No. 84 of 2004 as amended
This compilation was prepared on 13 July 2010
taking into account amendments up to Act No. 75 of 2010
The text of any of those amendments not in force
on that date is appended in the Notes section
The operation of amendments that have been incorporated may be
affected by application provisions that are set out in the Notes section
Prepared by the Office of Legislative Drafting and Publishing,
Attorney‑General’s Department, Canberra
Contents
1 Short title [see Note 1]
2 Commencement [see Note 1]
3 Schedule(s)
4 Application of amendments
Schedule 1—Medicare levy and Medicare levy surcharge low income thresholds
A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999
Medicare Levy Act 1986
Notes
An Act to amend the law relating to taxation, and for related purposes
1 Short title [see Note 1]
This Act may be cited as the Tax Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Act 2004.
2 Commencement [see Note 1]
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Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
4 Application of amendments
The amendments made by Schedule 1 apply to assessments for the 2003‑2004 year of income and later years of income.
Schedule 1—Medicare levy and Medicare levy surcharge low income thresholds
A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999
1 Paragraph 15(1)(c)
Omit “$15,062”, substitute “$15,529”.
2 Paragraph 16(2)(c)
Omit “$15,062”, substitute “$15,529”.
Medicare Levy Act 1986
3 Subsection 3(1) (paragraph (b) of the definition of phase‑in limit)
Omit “$18,555”, substitute “$19,611”.
4 Subsection 3(1) (paragraph (c) of the definition of phase‑in limit)
Omit “$16,283”, substitute “$16,788”.
5 Subsection 3(1) (paragraph (b) of the definition of threshold amount)
Omit “$17,164”, substitute “$18,141”.
6 Subsection 3(1) (paragraph (c) of the definition of threshold amount)
Omit “$15,062”, substitute “$15,529”.
7 Subsection 8(5) (definition of family income threshold)
Omit “$25,417”, substitute “$26,205”.
8 Subsection 8(5) (definition of family income threshold)
Omit “$2,334”, substitute “$2,406”.
9 Subsection 8(6)
Omit “$25,417”, substitute “$26,205”.
10 Subsection 8(7)
Omit “$25,417”, substitute “$26,205”.
11 Paragraph 8D(3)(c)
Omit “$15,062”, substitute “$15,529”.
12 Subparagraph 8D(4)(a)(ii)
Omit “$15,062”, substitute “$15,529”.
13 Paragraph 8G(2)(c)
Omit “$15,062”, substitute “$15,529”.
14 Subparagraph 8G(3)(a)(ii)
Omit “$15,062”, substitute “$15,529”.
Notes to the Tax Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Act 2004
Note 1
The Tax Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Act 2004 as shown in this compilation comprises Act No. 84, 2004 amended as indicated in the Tables below.
Table of Acts
Act | Number
and year | Date
of Assent | Date of commencement | Application, saving or transitional provisions |
Tax Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Act 2004 | 84, 2004 | 25 June 2004 | 25 June 2004 | |
Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Schedule 6 (item 116): 29 June 2010 | — |
Table of Amendments
ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted |
Provision affected | How affected |
S. 5.................... | rep. No. 75, 2010 |
Overview
The Tax Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Act 2004 was enacted by the Australian Parliament to amend the law relating to taxation, specifically targeting the Medicare Levy and Medicare Levy Surcharge. This Act was introduced to address issues related to the thresholds that determine eligibility for these levies, ensuring they align with economic conditions and income levels. By adjusting these thresholds, the Act aimed to maintain fairness and effectiveness in the taxation system as it relates to healthcare funding. The policy objective underpinning this Act was to revise the low-income thresholds in a way that reflects changes in economic conditions and income levels, thereby ensuring that the Medicare Levy and Medicare Levy Surcharge remain fair and relevant.
Scope and Application
The Tax Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Act 2004 amends the A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999 and the Medicare Levy Act 1986, specifically targeting the income thresholds that determine the applicability of the Medicare levy and the Medicare levy surcharge. These amendments apply to assessments for the 2003-2004 year of income and subsequent years, impacting individuals and entities subject to these levies based on their income levels. The Act adjusts the income thresholds to reflect changes in economic conditions, ensuring that the financial burden of healthcare contributions is fairly distributed among taxpayers. The geographic reach of this Act is national, applying across all states and territories in Australia. There are no specific exclusions or exemptions noted within the primary text of the Act, although subordinate instruments may extend or restrict its application further.
Key Provisions
The Tax Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Act 2004 (sections 3 and 4) amends the Medicare Levy Act 1986 and the A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999, primarily by adjusting the income thresholds for the Medicare levy and Medicare levy surcharge. The Act specifies new income figures to be used in determining the applicability and rates of these levies, beginning with the 2003-2004 income year. For instance, the Act modifies the income thresholds by substituting new figures, such as replacing $15,062 with $15,529 in various sections of the Acts it amends (Schedule 1, items 1 to 14).
These amendments impose specific obligations on taxpayers and employers to correctly calculate and remit the Medicare levy and surcharge based on the updated thresholds. Taxpayers must ensure their income is accurately assessed against the new figures to determine whether they are liable for the surcharge, which is an additional levy imposed on individuals who do not have private health insurance and whose income exceeds a certain threshold. Employers are also obligated to correctly calculate the levy on their employees' incomes and remit it to the Australian Taxation Office (ATO).
The Act does not explicitly list criminal or civil penalties for non-compliance within its text, but non-compliance with taxation laws generally can result in significant consequences. Under the general taxation laws, penalties for non-lodgement or incorrect lodgement of tax returns can include fines and imprisonment. Specifically, under section 284 of the Income Tax Assessment Act 1997, a person can be fined up to $1,800 for failing to lodge a tax return, and up to $8,100 for providing a false or misleading document. In more serious cases, individuals can face imprisonment for up to 12 months for tax evasion or fraud. The ATO also has the power to impose penalties for late payment of tax, which can accrue interest and further penalties over time.