Taxation Laws Amendment (Superannuation) Act 1993 (7 of 1993)

PART 3   AMENDMENT OF THE INCOME TAX RATES ACT 1986

Division 2   Amendments relating to the tax treatment of the excessive component of ETPs

37   Schedule 7

Schedule 7 to the Principal Act is amended:

(a) by omitting from clause 1 of Part I "clauses 2 and 3, the rate of tax in respect of each part of the taxable income of a resident taxpayer specified in column 1 of the following table is the rate set out in column 2 of that table opposite to the reference to that part of the taxable income" and substituting:

"clauses 2 and 3, the rates of tax on the taxable income of a resident taxpayer are as follows:

(a) for the EC part of the taxable income-47%;

(b) for each part of the ordinary taxable income specified in column 1 of the following table-the corresponding rate set out in column 2 of the table:";

(b) by inserting in the table in clause 1 of Part I "ordinary" before "taxable income" (wherever occurring);

(c) by omitting paragraph (d) of the definition of component B in clause 2 of Part I and substituting the following paragraph:

"(d) the amount of tax that would be payable by the taxpayer under clause 1 on a taxable income equal to the reduced taxable income;";

(d) by adding at the end of clauses 2 and 3 of Part I:

"In applying the formula, component B is to be worked out on the assumption that the whole of the taxable income is ordinary taxable income.";

(e) by omitting from clause 1 of Part II "clauses 2 and 3, the rate of tax in respect of each part of the taxable income of a non-resident taxpayer specified in column 1 of the following table is the rate set out in column 2 of that table opposite to the reference to that part of the taxable income" and substituting:

"clauses 2 and 3, the rates of tax on the taxable income of a non-resident taxpayer are as follows:

(a) for the EC part of the taxable income-47%;

(b) for each part of the ordinary taxable income specified in column 1 of the following table-the corresponding rate set out in column 2 of the table:";

(f) by inserting in the table in clause 1 of Part II "ordinary" before "taxable income" (wherever occurring);

(g) by omitting paragraph (d) of the definition of component B in clause 2 of Part II and substituting the following paragraph:

"(d) the amount of tax that would be payable by the taxpayer under clause 1 on a taxable income equal to the reduced taxable income;";

(h) by adding at the end of clauses 2 and 3 of Part II:

"In applying the formula, component B is to be worked out on the assumption that the whole of the taxable income is ordinary taxable income.".