Clean Energy (Income Tax Rates Amendments) Act 2011 (150 of 2011)

Schedule 1   Personal tax rates

Part 1   Amendments applying from the 2012-13 year of income

Income Tax Rates Act 1986

2   Subsections 20(1) and (2)

Repeal the subsections, substitute:

Part-year residency periods

(1) This Act applies in relation to a person and a year of income as if the reference in the table in Part I of Schedule 7 to the tax-free threshold were a reference to the amount calculated in accordance with the following formula, if there are one or more part-year residency periods in relation to the person in relation to the year of income:

(The tax-free threshold - $4,736) + ($4,736 x (Number of months in the year of income during which there is a part-year residency period in relation to the person and the year of income / 12))

Trustees

(1A) Subsection (1) does not apply in calculating the tax payable by the trustee of a trust estate under section 98 of the Assessment Act in respect of a share of a beneficiary of the net income of the trust estate of a year of income.

(2) However, this Act applies in calculating the tax payable by the trustee in respect of that share as if the reference in the table in Part I of Schedule 7 to the tax-free threshold were a reference to the amount calculated in accordance with the following formula, if there are one or more part-year residency periods in relation to the beneficiary in relation to the year of income:

(The tax-free threshold - $4,736) + ($4,736 x (Number of months in the year of income when a part-year residency period, or part-year residency periods, in relation to the beneficiary in relation to the year of income subsisted / 12))