Second Reading Speech
By The Minister assisting the Treasurer, The Hon. Chris Hurford, M.P.This Bill will amend various taxation Acts, mainly as a consequence of the reforms to be made to the personal income tax rate scale by the income tax rates Bill 1986.
The Bill will also give effect to some 1986-87 budget proposals.
It will amend the Income Tax Assessment Act to increase the taxable income level, at or below which the maximum pensioner rebate of $250 is available, from $5,595 to $5,914 in 1986-87 and to $6,142 in 1987-88 and subsequent years.
The maximum levels of the beneficiary rebates will also be increased from $220 to $280 for married beneficiaries and from $170 to $190 for other beneficiaries. The income levels above which the rebates are to shade-out will also be increased.
In addition, the Bill will extend the benefit of the beneficiary rebates to recipients of benefits or payments under the Commonwealth's Tertiary Education Assistance Scheme and the Adult Secondary Education Assistance Scheme.
The changes to the pensioner and beneficiary rebates are to take effect from the 1986-87 year.
Other amendments of the Income Tax Assessment Act will reduce the level of the rebates of tax available for net medical expenses in excess of $1,000, payments of home loan interest by a first home buyer and the assessable proceeds of certain life assurance policies.
These rebates will be allowed at the rate of 29.42 per cent for 1986-87 and 29 per cent for 1987-88 and subsequent years.
Also reflecting the changes in personal tax rates, another amendment proposed will adjust the method of calculating the amount of any rebate allowable where payments in consequence of a taxpayer's termination of employment are included in his or her assessable income.
Other Acts that are proposed to be amended by this Bill as a consequence of the new personal tax rates are the Income Tax (Bearer Debentures) Act 1971, the Income Tax (Mining Withholding Tax) Act 1979, The Trust Recoupment Tax Act 1985 and the Trust Recoupment Tax Assessment Act 1985.
Detailed explanations of the amendments to these Acts and others I have mentioned are contained in the Explanatory Memorandum which is being made available to Honourable Members.
I commend the Bill to the House.