Tax Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Act 2005
Act No. 62 of 2005 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)
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 2005.
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Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
Schedule 1—Medicare levy and Medicare levy surcharge low income thresholds
A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999
1 Paragraphs 15(1)(c) and 16(2)(c)
Omit “$15,529”, substitute “$15,902”.
Medicare Levy Act 1986
2 Subsection 3(1) (paragraph (b) of the definition of phase‑in limit)
Omit “$19,611”, substitute “$20,812”.
3 Subsection 3(1) (paragraph (c) of the definition of phase‑in limit)
Omit “$16,788”, substitute “$17,191”.
4 Subsection 3(1) (paragraph (b) of the definition of threshold amount)
Omit “$18,141”, substitute “$19,252”.
5 Subsection 3(1) (paragraph (c) of the definition of threshold amount)
Omit “$15,529”, substitute “$15,902”.
6 Subsection 8(5) (definition of family income threshold)
Omit “$26,205”, substitute “$26,834”.
7 Subsection 8(5) (definition of family income threshold)
Omit “$2,406”, substitute “$2,464”.
8 Subsections 8(6) and (7)
Omit “$26,205”, substitute “$26,834”.
9 Paragraph 8D(3)(c)
Omit “$15,529”, substitute “$15,902”.
10 Subparagraph 8D(4)(a)(ii)
Omit “$15,529”, substitute “$15,902”.
11 Paragraph 8G(2)(c)
Omit “$15,529”, substitute “$15,902”.
12 Subparagraph 8G(3)(a)(ii)
Omit “$15,529”, substitute “$15,902”.
13 Application of amendments
The amendments made by this Schedule apply to assessments for the 2004‑2005 year of income and later years of income.
Notes to the Tax Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Act 2005
Note 1
The Tax Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Act 2005 as shown in this compilation comprises Act No. 62, 2005 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 2005 | 62, 2005 | 26 June 2005 | 26 June 2005 | |
Tax Laws Amendment (2010 Measures No. 2) Act 2010 | 75, 2010 | 28 June 2010 | Schedule 6 (item 117): 29 June 2010 | — |
Table of Amendments
ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted |
Provision affected | How affected |
S. 4.................... | rep. No. 75, 2010 |
Overview
The Tax Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Act 2005, enacted by the Parliament of Australia, was designed to address issues related to the taxation system, specifically focusing on the Medicare Levy and Medicare Levy Surcharge. The Act sought to adjust the income thresholds that determine eligibility for the surcharge, which is intended to encourage higher-income individuals to purchase private health insurance rather than rely solely on the public healthcare system. This Act aimed to ensure that the thresholds for the surcharge and the related low-income thresholds are updated to reflect changes in the cost of living and economic conditions. By amending the A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999 and the Medicare Levy Act 1986, the Act made it so that the adjustments would apply from the 2004-2005 income year onwards, thereby maintaining the integrity and relevance of the Medicare funding system.
Scope and Application
The Tax Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Act 2005 amends the Medicare levy and Medicare levy surcharge provisions of the A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999 and the Medicare Levy Act 1986. The Act applies to individuals and entities subject to the Medicare levy and Medicare levy surcharge, which is an additional tax levied on individuals and families with higher incomes who are not covered by private health insurance. The Act specifies new income thresholds that determine eligibility for the surcharge and affects all taxpayers from the 2004-2005 income year onwards. The legislation operates on a Commonwealth level and its amendments apply nationwide. Subordinate instruments or regulations may further define or expand upon the application of these provisions, but the primary text of the Act itself sets out the core amendments and income thresholds. There are no specific exclusions or exemptions stated within the text of this Act, though the thresholds themselves implicitly exempt lower-income earners from the surcharge.
Key Provisions
The Tax Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Act 2005 primarily serves to adjust various income thresholds that are used in determining the applicability and rate of the Medicare levy and the Medicare levy surcharge (sections 1-13). This Act amends the A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999 and the Medicare Levy Act 1986 by updating the income thresholds referenced in those Acts. Specifically, it adjusts the low income thresholds for the Medicare levy and Medicare levy surcharge to reflect changes in economic conditions and cost of living adjustments.
The Act imposes obligations on taxpayers to ensure that their income levels are correctly assessed against the updated thresholds to determine their liability for the Medicare levy and the Medicare levy surcharge. For example, taxpayers must ensure that their income does not exceed the phase-in limit, the threshold amount, or the family income threshold as newly defined by the Act. These thresholds are crucial for calculating the appropriate Medicare levy and surcharge rates, which are applied based on an individual's or family's total taxable income. Failure to correctly apply these thresholds can lead to incorrect assessments and potential discrepancies in the amount of levy and surcharge owed or refunded.
The Act does not explicitly outline specific offences or penalties for non-compliance with the updated thresholds. However, general tax laws apply, which means that inaccuracies in tax returns or incorrect applications of the Medicare levy and surcharge can result in penalties, interest on underpaid taxes, and potential audits by the Australian Taxation Office (ATO). The penalties for providing false or misleading information can be severe, including fines and potential criminal charges for fraud. It is also important to note that the maximum penalties for tax-related offences can vary widely, depending on the nature and severity of the offence, and are determined under the general tax legislation rather than this specific Act.