Treasury Laws Amendment (Major Bank Levy) Act 2017 (64 of 2017)

Schedule 1   Amendments

Income Tax Assessment Act 1997

9   At the end of Subdivision 960-M

Add:

960-290 Indexation - levy threshold for the major bank levy

(1) You index, on a *quarterly basis, the amount mentioned in the provision listed at item 14 in section 960-265 by:

(a) first, multiplying the amount by its *indexation factor mentioned in subsection (3); and

(b) next, rounding the result in paragraph (a) down to the nearest multiple of $1,000,000.

(2) You do not index the amount if the *indexation factor is 1 or less.

(3) For indexation of the amount, the indexation factor is:

where:

GDP number for the base quarter is the estimate that is, at the end of the *quarter to which the indexation is to be applied, the estimate of the Gross Domestic Product: Current Prices-Seasonally Adjusted most recently published by the Australian Statistician for the *quarter ending on 30 June 2017.

GDP number for the preceding quarter is the estimate of the Gross Domestic Product: Current Prices-Seasonally Adjusted first published by the Australian Statistician for the *quarter preceding the quarter to which the indexation is to be applied.

(4) You work out the *indexation factor mentioned in subsection (3) to 3 decimal places (rounding up if the fourth decimal place is 5 or more).