Taxation (Deficit Reduction) Act (No. 3) 1993

Administered by Department of the Treasury

Legislation au C2004A04613 In force Act

Legislation content

Taxation (Deficit Reduction) Act (No. 3) 1993

No. 58, 1993

Compilation No. 1

Compilation date:   25 June 2015

Includes amendments up to: Act No. 70, 2015

Registered:    3 July 2015

 

About this compilation

This compilation

This is a compilation of the Taxation (Deficit Reduction) Act (No. 3) 1993 that shows the text of the law as amended and in force on 25 June 2015 (the compilation date).

This compilation was prepared on 30 June 2015.

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on ComLaw (www.comlaw.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the series page on ComLaw for the compiled law.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the series page on ComLaw for the compiled law.

Self‑repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

 

 

 

Contents

Part 1—Preliminary

1 Short title

2 Commencement

Part 2—Amendment of the Income Tax Rates Act 1986 to give effect to personal tax cuts

Division 1—Preliminary

3 Object of Part

4 Principal Act

Division 2—Tax cuts for 1993‑94

5 Schedule 7

Division 3—Tax cuts starting in 1994‑95

6 Schedule 7

Part 3—Repeal of the Tax Legislation Amendment Act 1992

8 Object of Part

9 Repeal of the Tax Legislation Amendment Act 1992

Part 4—Amendment of the Income Tax Assessment Act 1936

Division 1—Principal Act

10 Principal Act

Division 2—Amendment to provide for a rebate for low‑income taxpayers

11 Object of Division

12 Insertion of new section

13 Application of amendment

Endnotes

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

 

An Act to amend the law relating to taxation

Part 1—Preliminary

 

1  Short title

  This Act may be cited as the Taxation (Deficit Reduction) Act (No. 3) 1993.

2  Commencement

 (1) This Act (other than Divisions 3 and 4 of Part 2) commences on the day on which it receives the Royal Assent.

 (2) Division 3 of Part 2 commences on 1 July 1994.

Part 2—Amendment of the Income Tax Rates Act 1986 to give effect to personal tax cuts

Division 1—Preliminary

3  Object of Part

  The object of this Part is to implement personal tax cuts.

4  Principal Act

  In this Part, Principal Act means the Income Tax Rates Act 1986.

Division 2—Tax cuts for 1993‑94

5  Schedule 7

 (1) The Principal Act is amended:

 (a) by omitting the table in Part I of Schedule 7 and substituting the following table:

 

Column 1

Column 2

 

Parts of taxable income of resident taxpayer

% rate

 

The part of taxable income that:

 

 

  exceeds $5,400 but does not exceed $20,700

20%

 

  exceeds $20,700 but does not exceed $36,000

35.5%

 

  exceeds $36,000 but does not exceed $38,000

38.5%

 

  exceeds $38,000 but does not exceed $50,000

44.125%

 

  exceeds $50,000

47%

;

 (b) by omitting the table in Part II of Schedule 7 and substituting the following table:

 

Column 1

Column 2

 

Parts of taxable income of non‑resident taxpayer

% rate

 

The part of taxable income that:

 

 

  does not exceed $20,700

29%

 

  exceeds $20,700 but does not exceed $36,000

35.5%

 

  exceeds $36,000 but does not exceed $38,000

38.5%

 

  exceeds $38,000 but does not exceed $50,000

44.125%

 

  exceeds $50,000

47%

.

 (2) The amendments made by subsection (1) apply to assessments in respect of income of the 1993‑94 year of income.

Division 3—Tax cuts starting in 1994‑95

6  Schedule 7

 (1) The Principal Act is amended:

 (a) by omitting the table in Part I of Schedule 7 and substituting the following table:

 

Column 1

Column 2

 

Parts of taxable income of resident taxpayer

% rate

 

The part of taxable income that:

 

 

  exceeds $5,400 but does not exceed $20,700

20%

 

  exceeds $20,700 but does not exceed $38,000

34%

 

  exceeds $38,000 but does not exceed $50,000

43%

 

  exceeds $50,000

47%

;

 (b) by omitting the table in Part II of Schedule 7 and substituting the following table:

 

Column 1

Column 2

 

Parts of taxable income of non‑resident taxpayer

% rate

 

The part of taxable income that:

 

 

  does not exceed $20,700

29%

 

  exceeds $20,700 but does not exceed $38,000

34%

 

  exceeds $38,000 but does not exceed $50,000

43%

 

  exceeds $50,000

47%

.

 (2) The amendments made by subsection (1) apply to assessments in respect of income of the 1994‑95 year of income and of all later years of income.

 (3) Subsection (2) has effect subject to Division 4.

Part 3—Repeal of the Tax Legislation Amendment Act 1992

 

8  Object of Part

  The object of this Part is to repeal the Tax Legislation Amendment Act 1992. That Act, which provided for personal tax cuts, is superseded by the amendments made by this Act.

9  Repeal of the Tax Legislation Amendment Act 1992

  The Tax Legislation Amendment Act 1992 is repealed.

Part 4—Amendment of the Income Tax Assessment Act 1936

Division 1—Principal Act

10  Principal Act

  In this Part, Principal Act means the Income Tax Assessment Act 1936.

Division 2—Amendment to provide for a rebate for low‑income taxpayers

11  Object of Division

  The object of this Division is to provide for a rebate of up to $150 for low‑income taxpayers.

12  Insertion of new section

  After section 159M of the Principal Act the following section is inserted:

159N  Rebate for certain low‑income taxpayers

 (1) If a taxpayer’s taxable income of a year of income is less than $24,450, the taxpayer is entitled to a rebate of tax in the taxpayer’s assessment for the year of income.

 (2) The amount of the rebate is $150, reduced by 4 cents for every $1 of the amount (if any) by which the taxpayer’s taxable income of the year of income exceeds $20,700.

13  Application of amendment

  The amendment made by this Division applies to assessments in respect of income of the 1993‑94 year of income and of all later years of income.

Endnotes

Endnote 1—About the endnotes

The endnotes provide information about this compilation and the compiled law.

The following endnotes are included in every compilation:

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Endnotes about misdescribed amendments and other matters are included in a compilation only as necessary.

Abbreviation key—Endnote 2

The abbreviation key 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 (or will amend) the compiled law. The information includes commencement details for amending laws and details of any 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 (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.

Misdescribed amendments

A misdescribed amendment is an amendment that does not accurately describe the amendment to be made. If, despite the misdescription, the amendment can be given effect as intended, the amendment is incorporated into the compiled law and the abbreviation “(md)” added to the details of the amendment included in the amendment history.

If a misdescribed amendment cannot be given effect as intended, the amendment is set out in the endnotes.

 

Endnote 2—Abbreviation key

 

A = Act

orig = original

ad = added or inserted

par = paragraph(s)/subparagraph(s)

am = amended

    /sub‑subparagraph(s)

amdt = amendment

pres = present

c = clause(s)

prev = previous

C[x] = Compilation No. x

(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 = expires/expired or ceases/ceased to have

rep = repealed

    effect

rs = repealed and substituted

F = Federal Register of Legislative Instruments

s = section(s)/subsection(s)

gaz = gazette

Sch = Schedule(s)

LI = Legislative Instrument

Sdiv = Subdivision(s)

LIA = Legislative Instruments Act 2003

SLI = Select Legislative Instrument

(md) = misdescribed amendment

SR = Statutory Rules

mod = modified/modification

Sub‑Ch = Sub‑Chapter(s)

No. = Number(s)

SubPt = Subpart(s)

o = order(s)

underlining = whole or part not

Ord = Ordinance

    commenced or to be commenced

 

Endnote 3—Legislation history

 

Act

Number and year

Assent

Commencement

Application, saving and transitional provisions

Taxation (Deficit Reduction) Act (No. 3) 1993

58, 1993

27 Oct 1993

s 6: 1 July 1994 (s 2(2))
s 7: (s 2(3) rep by 70, 2015)
Remainder: 27 Oct 1993 (s 2(1))

 

Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015

70, 2015

25 June 2015

Sch 6 (items 60, 61): 25 June 2015 (s 2(1) item 17)

—

 

Endnote 4—Amendment history

 

Provision affected

How affected

Part 1

 

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

am No 70, 2015

Part 2

 

Division 4................

rep No 70, 2015

s 7.....................

rep No 70, 2015

 

Overview

The Taxation (Deficit Reduction) Act (No. 3) 1993 was enacted by the Parliament of Australia to implement personal income tax cuts and address the fiscal deficit. The Act amends the Income Tax Rates Act 1986 to introduce reduced tax rates for individuals, effective from the 1993-94 and 1994-95 financial years. Additionally, it introduces a rebate for low-income taxpayers, providing up to $150 for those with a taxable income below $24,450. The primary objective of this legislation is to ease the tax burden on individuals, particularly those with lower incomes, while also contributing to deficit reduction efforts. The Act was introduced in response to the need for fiscal adjustments and to provide economic relief during a period of economic transition.

Scope and Application

The Taxation (Deficit Reduction) Act (No. 3) 1993 is a Commonwealth Act that primarily concerns the amendment of the Income Tax Rates Act 1986 to implement personal tax cuts, and the amendment of the Income Tax Assessment Act 1936 to provide for a rebate for low-income taxpayers. The Act applies to both resident and non-resident taxpayers, focusing on the reduction of tax rates and the introduction of rebates. The tax cuts specified in the Act apply to the 1993-94 and subsequent years of income, with particular amendments to the tax rate schedules of the Principal Act. Additionally, the Act repeals the Tax Legislation Amendment Act 1992, which previously provided for personal tax cuts, thereby superseding it with the amendments introduced by this Act. The Act commenced on 27 October 1993, with certain provisions starting on 1 July 1994. The amendments to the tax rates and the introduction of rebates apply to all taxpayers whose income is assessed from the 1993-94 year onwards. There are no specific exclusions or exemptions stated within the text of this Act; however, the applicability and effect of the Act may be subject to other legislative provisions or judicial interpretations.

Key Provisions

The Taxation (Deficit Reduction) Act (No. 3) 1993 makes several significant changes to existing taxation laws. The Act amends the Income Tax Rates Act 1986 to implement personal tax cuts, which are set out in Schedule 7. For the 1993-94 financial year, the Act reduces the tax rates for both resident and non-resident taxpayers in different income brackets. For example, for resident taxpayers with income exceeding $5,400 but not exceeding $20,700, the tax rate is set at 20%. For income exceeding $20,700 but not exceeding $36,000, the tax rate is 35.5%, and so on. For non-resident taxpayers, the tax rates are similarly adjusted across the specified income brackets. These tax rate reductions apply to assessments for the 1993-94 year of income. For the 1994-95 financial year and subsequent years, the tax rates are further reduced, with resident taxpayers with income exceeding $5,400 but not exceeding $20,700 paying 20%, those with income exceeding $20,700 but not exceeding $38,000 paying 34%, and those with income exceeding $38,000 but not exceeding $50,000 paying 43%. Non-resident taxpayers in these income brackets are subject to tax rates of 29%, 34%, and 43%, respectively. The Act also introduces a rebate for low-income taxpayers by amending the Income Tax Assessment Act 1936. Section 159N, inserted into the Act, entitles taxpayers with a taxable income of less than $24,450 to a rebate of $150 for the 1993-94 year of income and subsequent years. This rebate is reduced by 4 cents for every dollar by which the taxpayer's income exceeds $20,700. This amendment is aimed at providing financial relief to low-income taxpayers. In addition, the Act repeals the Tax Legislation Amendment Act 1992, which previously provided for personal tax cuts. The repeal ensures that the amendments made by this Act supersede the previous Act. The Act imposes specific obligations on taxpayers, such as ensuring that their taxable income is correctly reported for the application of the new tax rates and rebates. For the 1993-94 financial year, taxpayers must adhere to the new tax rate brackets specified in Schedule 7 of the Act. For subsequent years, they must follow the adjusted tax rates also set out in Schedule 7. Similarly, low-income taxpayers are required to declare their income accurately to qualify for the rebate under section 159N. The Act also requires taxpayers to keep relevant records and documentation to substantiate their claims for tax cuts and rebates. Failure to comply with the obligations imposed by the Act may result in various civil or criminal consequences. While the Act itself does not explicitly state penalties for non-compliance, breaches of tax laws generally can lead to penalties under the Income Tax Assessment Act 1996. For example, providing false or misleading information to the Commissioner of Taxation can result in fines and, in severe cases, criminal charges. Penalties for underpayment of tax can include interest on the unpaid amount, additional tax liabilities, and in some cases, prosecution. It is important for taxpayers to adhere to the provisions of the Act to avoid these potential consequences.

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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.