House of Representatives
Taxation Laws Amendment (Changes for Senior Australians) Bill 2001
Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)Chapter 3 - Exemption of certain payments
Outline of chapter
3.1 Schedule 3 to this Bill amends the Income Tax Assessment Act 1997 (ITAA 1997) to exempt, from income tax, a one-off payment (known as the one-off payment to the aged) which will be made to all senior Australians as announced in the Governments 2001-2002 Federal Budget. [Schedule 3, item 1]
3.2 This one-off payment to the aged is to be made through Centrelink. The amount is to be $300.
3.3 This Bill amends subsection 52-10(2) of the ITAA 1997 to ensure that these one-off payments to the aged are exempt from tax.
Application and transitional provisions
3.4 The amendment will apply to assessments for the 2000-2001 year of income and later years of income. [Schedule 3, item 2]