Taxation Laws Amendment Act (No. 6) 2000

Taxation Laws Amendment Act (No. 6) 2000

Act No. 76 of 2000 as amended

This compilation was prepared on 3 September 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—CDEP Scheme Participant Supplement

Income Tax Assessment Act 1936

Income Tax Rates Act 1986

Taxation Administration Act 1953

Schedule 2—Exempting value received from GST Direct Assistance Certificates

Income Tax Assessment Act 1997

Schedule 3—Medicare levy and surcharge for health insurance policy with high excess

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 Taxation Laws Amendment Act (No. 6) 2000.

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  Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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—CDEP Scheme Participant Supplement

Income Tax Assessment Act 1936

1  Subsection 160AAA(1) (paragraph (a) of the definition of rebatable benefit)

Omit “or 2.15A”, substitute “, 2.15A or 3.15A”.

2  Subsection 160AAA(1) (paragraph (b) of the definition of rebatable pension)

Omit “or 2.18”, substitute “, 2.18 or 3.15A”.

3  Paragraph 202CB(6)(a)

After “an austudy payment”, insert “, a CDEP Scheme Participant Supplement”.

4  Paragraph 202CE(7)(a)

After “an austudy payment”, insert “, a CDEP Scheme Participant Supplement”.

5  Subsection 221A(1) (after paragraph (g) of the definition of salary or wages)

Insert:

 or (h) by way of CDEP Scheme Participant Supplement;

Income Tax Rates Act 1986

6  Subsection 16(1) (paragraph (c) of the definition of eligible pensioner)

Omit “or 2.15”, substitute “, 2.15 or 3.15A”.

Taxation Administration Act 1953

7  Subsection 12‑110(1) in Schedule 1

Repeal the subsection, substitute:

 (1) An entity must withhold an amount from a payment it makes to an individual if the payment is:

 (a) specified in an item of the table in section 52‑10 of the Income Tax Assessment Act 1997 (Social Security payments); or

 (b) specified in an item of the table in section 52‑65 of that Act (Veterans’ Affairs payments); or

 (c) specified in section 52‑105, 53‑10, 55‑5 or 55‑10 of that Act; or

Note: Payments specified in those provisions of the Income Tax Assessment Act 1997 are made under various Commonwealth laws.

 (d) made under Part 3.15A of the Social Security Act 1991.

8  Application of amendments

(1) The amendments made by items 1, 2 and 6 apply to assessments for the 1999‑2000 year of income and all later years of income.

(2) The amendments made by items 3 and 4 apply in relation to the quotation of TFNs on or after 11 November 1999.

(3) The amendment made by item 5 applies to payments made on or after 11 November 1999.

(4) The amendment made by item 7 applies to payments made on or after 1 July 2000.

Schedule 2—Exempting value received from GST Direct Assistance Certificates

Income Tax Assessment Act 1997

1  Section 11‑15 (after the table item headed “foreign investment”)

Insert:

2  At the end of Division 51

Add:

51‑60  Income from GST Direct Assistance Certificate

  Your *ordinary income and *statutory income for the 1999‑2000 and 2000‑01 income years are exempt from income tax so far as they are attributable to a certificate that:

 (a) is commonly called a GST Direct Assistance Certificate; and

 (b) is issued to you by an organisation known as the GST Start‑Up Assistance Office in the Department of the Treasury; and

 (c) is expressed to have a maximum value of $200.

3  After section 118‑13

Insert:

118‑14  GST Direct Assistance Certificate

  A *capital gain or *capital loss you make in the 1999‑2000 or 2000‑01 income year is disregarded if the gain or loss is from a *CGT event that happens when you use a certificate that:

 (a) is commonly called a GST Direct Assistance Certificate; and

 (b) is issued to you by an organisation known as the GST Start‑Up Assistance Office in the Department of the Treasury; and

 (c) is expressed to have a maximum value of $200.

Schedule 3—Medicare levy and surcharge for health insurance policy with high excess

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

1  Subsection 3(1)

Insert:

covered by an insurance policy that provides private patient hospital cover has a meaning affected by section 4.

Note: For limited purposes, sections 12, 13 and 14 also treat certain persons as being covered by an insurance policy that provides private patient hospital cover.

2  Subsection 3(1) (definition of provides)

Repeal the definition.

3  Section 4

Repeal the section, substitute:

4  When does a person have private patient hospital cover?

 (1) For the purposes of this Act, a person is covered by an insurance policy that provides private patient hospital cover if the policy is an applicable benefits arrangement, within the meaning of section 5A of the National Health Act 1953, to which paragraph 5A(1)(a) of that Act applies.

 (2) However, for the purposes of this Act a person is not covered by an insurance policy that provides private patient hospital cover if:

 (a) the insurance policy that covers the person is an applicable benefits arrangement that:

 (i) is modified in accordance with an election described in paragraph (ba) of Schedule 1 to the National Health Act 1953; and

 (ii) is associated with a health benefits fund conducted by a registered organization under that Act; and

 (b) the difference between the lesser benefits mentioned in that paragraph and the benefits payable in accordance with a corresponding applicable benefits arrangement not modified in accordance with such an election is more than:

 (i) $1,000; or

 (ii) $500, if there is only one contributor (as defined in that Act) to the health benefits fund for the applicable benefits arrangement mentioned in paragraph (a) of this subsection and benefits are not payable under the arrangement in respect of the contributor’s dependants (as defined in that Act), if any.

 (3) Subsection (2) does not prevent a person from being covered by an insurance policy that provides private patient hospital cover if:

 (a) the person has been covered by the policy continuously since the end of 24 May 2000; and

 (b) the election mentioned in subparagraph (2)(a)(i) was made before the end of 24 May 2000.

 (4) For the purposes of this Act, a person is also covered by an insurance policy that provides private patient hospital cover if:

 (a) the policy is issued by a person to whom subsection 67(3) of the National Health Act 1953 applies; and

 (b) if the person referred to in paragraph (a) were a registered organization within the meaning of that Act—the policy would be an applicable benefits arrangement, within the meaning of section 5A of that Act, to which paragraph 5A(1)(a) of that Act would apply.

 (5) However, for the purposes of this Act a person is not covered by an insurance policy that provides private patient hospital cover if:

 (a) the person is covered by an insurance policy described in subsection (4); and

 (b) under subsection (2), the person would not be covered by an insurance policy that provides private patient hospital cover for the purposes of this Act, assuming that:

 (i) the policy mentioned in paragraph (a) of this subsection were a policy described in subsection (1); and

 (ii) the person issuing the policy were a registered organization conducting a health benefits fund under the National Health Act 1953; and

 (iii) the policy were associated with the fund.

 (6) Subsections (2) and (5) do not limit the circumstances in which, for the purposes of this Act, a person is not covered by an insurance policy that provides private patient hospital cover.

Example: For the purposes of this Act, a person is also not covered by an insurance policy that provides private patient hospital cover if the person is not covered by an insurance policy described in subsection (1) or (4).

Medicare Levy Act 1986

4  After subsection 3(5)

Insert:

 (5A) However, for the purposes of this Act a person is not covered by an insurance policy that provides private patient hospital cover if:

 (a) the insurance policy that covers the person is an applicable benefits arrangement that:

 (i) is modified in accordance with an election described in paragraph (ba) of Schedule 1 to the National Health Act 1953; and

 (ii) is associated with a health benefits fund conducted by a registered organization under that Act; and

 (b) the difference between the lesser benefits mentioned in that paragraph and the benefits payable in accordance with a corresponding applicable benefits arrangement not modified in accordance with such an election is more than:

 (i) $1,000; or

 (ii) $500, if there is only one contributor (as defined in that Act) to the health benefits fund for the applicable benefits arrangement mentioned in paragraph (a) of this subsection and benefits are not payable under the arrangement in respect of the contributor’s dependants (as defined in that Act), if any.

 (5B) Subsection (5A) does not prevent a person from being covered by an insurance policy that provides private patient hospital cover if:

 (a) the person has been covered by the policy continuously since the end of 24 May 2000; and

 (b) the election mentioned in subparagraph (5A)(a)(i) was made before the end of 24 May 2000.

5  At the end of section 3

Add:

 (7) However, for the purposes of this Act a person is not covered by an insurance policy that provides private patient hospital cover if:

 (a) the person is covered by an insurance policy described in subsection (6); and

 (b) under subsection (5A), the person would not be covered by an insurance policy that provides private patient hospital cover for the purposes of this Act, assuming that:

 (i) the policy mentioned in paragraph (a) of this subsection were a policy described in subsection (5); and

 (ii) the person issuing the policy were a registered organization conducting a health benefits fund under the National Health Act 1953; and

 (iii) the policy were associated with the fund.

 (8) Subsections (5A) and (7) do not limit the circumstances in which, for the purposes of this Act, a person is not covered by an insurance policy that provides private patient hospital cover.

Example: For the purposes of this Act, a person is also not covered by an insurance policy that provides private patient hospital cover if the person is not covered by an insurance policy described in subsection (5) or (6).

6  Application of amendments

The amendments made by this Schedule apply for the purposes of working out Medicare levy and surcharge (as defined in Part VIIB of the Income Tax Assessment Act 1936) for financial years starting on or after 1 July 2000.

Notes to the Taxation Laws Amendment Act (No. 6) 2000

Note 1

The Taxation Laws Amendment Act (No. 6) 2000 as shown in this compilation comprises Act No. 76, 2000 amended as indicated in the Tables below.

Table of Acts

Table of Amendments