Trust Recoupment Tax Amendment (Temporary Budget Repair Levy) Act 2014
No. 50, 2014
An Act to amend the Trust Recoupment Tax Act 1985, and for related purposes
Contents
1 Short title
2 Commencement
3 Schedule(s)
Schedule 1—Temporary budget repair levy
Trust Recoupment Tax Act 1985
Trust Recoupment Tax Amendment (Temporary Budget Repair Levy) Act 2014
No. 50, 2014
An Act to amend the Trust Recoupment Tax Act 1985, and for related purposes
[Assented to 25 June 2014]
The Parliament of Australia enacts:
1 Short title
This Act may be cited as the Trust Recoupment Tax Amendment (Temporary Budget Repair Levy) Act 2014.
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. | 25 June 2014 |
2. Schedule 1 | At the same time as Schedule 1 to the Tax Laws Amendment (Temporary Budget Repair Levy) Act 2014 commences. | 25 June 2014 |
Note: This table relates only to the provisions of this Act as originally enacted.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Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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—Temporary budget repair levy
Trust Recoupment Tax Act 1985
1 At the end of the Act
Add:
6 Temporary budget repair levy
(1) This section applies to the temporary budget repair levy years.
(2) Increase the rate of tax mentioned in paragraph 5(a) by 2 percentage points.
(3) In this section:
temporary budget repair levy year means a year of income corresponding to a temporary budget repair levy year (within the meaning of section 4‑11 of the Income Tax (Transitional Provisions) Act 1997).
[Minister’s second reading speech made in—
House of Representatives on 13 May 2014
Senate on 16 June 2014]
Overview
The Trust Recoupment Tax Amendment (Temporary Budget Repair Levy) Act 2014, enacted by the Parliament of Australia on 25 June 2014, was introduced to amend the Trust Recoupment Tax Act 1985 by implementing a temporary budget repair levy. This legislative change was made to address fiscal imbalances within the budget framework by increasing the rate of tax by two percentage points for the specified temporary budget repair levy years. The policy objective of this Act was to introduce a temporary levy as a measure to assist in budgetary adjustments during a defined period, in line with the broader fiscal strategy outlined in the Income Tax (Transitional Provisions) Act 1997. The Act commenced on the day of Royal Assent and in conjunction with the commencement of Schedule 1 of the Tax Laws Amendment (Temporary Budget Repair Levy) Act 2014.
Scope and Application
The Trust Recoupment Tax Amendment (Temporary Budget Repair Levy) Act 2014 amends the Trust Recoupment Tax Act 1985 to introduce a temporary budget repair levy. This Act applies to the temporary budget repair levy years, which are defined in section 4-11 of the Income Tax (Transitional Provisions) Act 1997. The amendment increases the rate of tax by 2 percentage points for these specified years. The Act commenced on 25 June 2014, with certain provisions starting on the same date as Schedule 1 to the Tax Laws Amendment (Temporary Budget Repair Levy) Act 2014. The geographic and jurisdictional reach of the Act is confined to the Commonwealth of Australia, with the amendment applying to entities and individuals subject to the Trust Recoupment Tax Act 1985 within the Australian tax system. There are no stated exclusions or exemptions within the text of the Act itself, though subordinate instruments may further define application and enforcement.
Key Provisions
The Trust Recoupment Tax Amendment (Temporary Budget Repair Levy) Act 2014 primarily amends the Trust Recoupment Tax Act 1985 by introducing a temporary budget repair levy (sections 1 to 3 and Schedule 1). This Act specifies the increase in the tax rate by 2 percentage points for the temporary budget repair levy years, which are defined as years of income corresponding to the temporary budget repair levy years as outlined in section 4-11 of the Income Tax (Transitional Provisions) Act 1997. The amendments are designed to address budgetary concerns by imposing a temporary levy on certain income.
Entities governed by the Trust Recoupment Tax Act 1985, such as trustees of trusts, are required to comply with the increased tax rate for the specified temporary budget repair levy years. Trustees must ensure that they account for the additional 2 percentage points in their calculations and payments of the trust recoupment tax. The obligations extend to accurately reporting and paying the adjusted tax rate as stipulated in the amended legislation, ensuring that the additional levy is properly applied and collected during the designated levy years.
Breaches of the provisions under this Act may result in civil or criminal consequences. For instance, failure to accurately report and pay the increased tax rate could lead to penalties. Although the Act does not explicitly detail the maximum penalties, it is implied that penalties for non-compliance with tax laws could include fines or other sanctions. It is essential for trustees and other affected entities to adhere to the amended tax rates to avoid any legal repercussions.