PART 1 - PRELIMINARY
SECTION 1
1
SHORT TITLE
This Act may be cited as the
A New Tax System (Medicare Levy Surcharge - Fringe Benefits) Act 1999.
SECTION 2
2
COMMENCEMENT
This Act commences on the day on which the
A New Tax System (Fringe Benefits Reporting) Act 1999 receives the Royal Assent.
SECTION 3
DEFINITIONS
3(1)
In this Act, unless the contrary intention appears:
Assessment Act
means the Income Tax Assessment Act 1936.
Australia
, when used in a geographical sense, has the same meaning as in the Income Tax Assessment Act 1997.
History
Definition of "Australia" inserted by No 52 of 2015, s 3 and Sch 1 item 1, applicable in relation to the 2016-17 year of income and later years of income.
covered
by an insurance policy that provides private patient hospital cover has a meaning affected by section 4.
Note:
For limited purposes, sections 12, 13 and 14 also treat certain persons as being covered by an insurance policy that provides private patient hospital cover.
History
Definition of "covered" inserted by No 76 of 2000.
dependant
of a person has the meaning given by section 5.
family surcharge threshold
(Repealed by No 28 of 2012)
History
Definition of "family surcharge threshold" repealed by No 28 of 2012, s 3 and Sch 1 item 1, applicable to the 2012-13 year of income and later years of income. The definition formerly read:
family surcharge threshold
for a person for a yearof income has the meaning given by section 6.
family tier 1 threshold
, of a person for a year of income, means the family tier 1 threshold (within the meaning of the Private Health Insurance Act 2007) of the person for the financial year corresponding to the year of income.
History
Definition of "family tier 1 threshold" inserted by No 28 of 2012, s 3 and Sch 1 item 2, applicable to the 2012-13 year of income and later years of income.
income for surcharge purposes
has the same meaning as in the Income Tax Assessment Act 1997.
History
Definition of "income for surcharge purposes" inserted by No 27 of 2009, s 3 and Sch 3 item 22, applicable in relation to income years starting on or after 1 July 2009.
married
has a meaning affected by section 7.
prescribed person
has the meaning given by section 8.
provides
(Repealed by No 76 of 2000)
reportable fringe benefits total
has the same meaning as in the Fringe Benefits Tax Assessment Act 1986.
History
Definition of "reportable fringe benefits total" substituted by No 27 of 2009, s 3 and Sch 3 item 23, applicable in relation to income years starting on or after 1 July 2009. The definition formerly read:
reportable fringe benefits total
of a person for a year of income has the meaning given by subsection 6(1) of the Assessment Act.
resident of Australia
has the meaning given by section 10.
singles surcharge threshold
(Repealed by No 28 of 2012)
History
Definition of "singles surcharge threshold" repealed by No 28 of 2012, s 3 and Sch 1 item 3, applicable to the 2012-13 year of income and later years of income. The definition formerly read:
singles surcharge threshold
for a person for a year of income has the meaning given by section 5A.
Definition of "singles surcharge threshold" inserted by No 110 of 2008, s 3 and Sch 1 item 1, applicable to assessments for the 2008-09 year of income and later years of income.
No 110 of 2008, s 3 and Sch 1 item 12 also contains the following transitional provision:
Transitional
(1)
In this item:
new Act
means the A New Tax System (Medicare Levy Surcharge - Fringe Benefits) Act 1999, and the Medicare Levy Act 1986, as amended by this Schedule.
(2)
For the purposes of the new Acts, if:
(a)
a person is covered by an insurance policy that provides private patient hospital cover; and
(b)
the person is covered by that policy:
(i)
during any part of the period starting on 1 July 2008 and ending on 31 December 2008 (the
designated period
); and
(ii)
on 1 January 2009;
the person is taken to be covered by that policy during the whole of the designated period.
Note:
For this purpose, a person includes a dependant of another person.
singles tier 1 threshold
, of a person for a year of income, means the singles tier 1 threshold (within the meaning of the Private Health Insurance Act 2007) of the person for the financial year corresponding to the year of income.
History
Definition of "singles tier 1 threshold" inserted by No 28 of 2012, s 3 and Sch 1 item 4, applicable to the 2012-13 year of income and later years of income.
surcharge
means Medicare levy surcharge imposed by section 10.
taxable income
(Repealed by No 27 of 2009)
History
Definition of "taxable income" repealed by No 27 of 2009, s 3 and Sch 3 item 24, applicable in relation to income years starting on or after 1 July 2009. The definition formerly read:
taxable income
of a person for a year of income has the meaning given by section 9.
tier 2 earner
has the meaning given by section 6.
History
Definition of "tier 2 earner" inserted by No 28 of 2012, s 3 and Sch 1 item 5, applicable to the 2012-13 year of income and later years of income.
tier 3 earner
has the meaning given by section 6.
History
Definition of "tier 3 earner" inserted by No 28 of 2012, s 3 and Sch 1 item 6, applicable to the 2012-13 year of income and later years of income.
3(2)
Subject to subsection (1) and any other contrary intention, an expression used in both this Act and Part VIIB of the Assessment Act has the same meaning in this Act as it has in that Part.
SECTION 4
4
WHEN DOES A PERSON HAVE PRIVATE PATIENT HOSPITAL COVER?
For the purposes of this Act, a person is covered by an insurance policy that provides private patient hospital cover if:
(a)
the policy is a complying health insurance policy (within the meaning of the
Private Health Insurance Act 2007) that covers hospital treatment (within the meaning of that Act); and
(b)
any excess payable in respect of benefits under the policy is no more than the applicable amount set out in section 45-1 of that Act in any 12 month period.
(i)
$500 in any 12 month period, in relation to a policy under which only one person is insured; and
(ii)
$1,000 in any 12 month period, in relation to any other policy.
History
S 4(1) amended by No 99 of 2018, s 3 and Sch 1 items 1 and 2, by omitting "(1)" before "For the purposes of this Act" and substituting para (b), effective 1 April 2019 and applicable in relation to the 2018-19 income year and later income years. Para (b) formerly read:
(b)
any excess payable in respect of benefits under the policy is no more than:
S 4(1) and (2) substituted for s 4(1) to (3) by No 32 of 2007, s 3 and Sch 2 item 4, effective 1 April 2007. S 4(1) formerly read:
4(1)
For the purposes of this Act, a person is covered by an insurance policy that provides private patient hospital cover if the policy is an applicable benefits arrangement, within the meaning of section 5A of the National Health Act 1953, to which paragraph 5A(1)(a) of that Act applies.
4(2)
(Repealed by No 99 of 2018)
History
S 4(2) repealed by No 99 of 2018, s 3 and Sch 1 item 3, effective 1 April 2019 and applicable in relation to the 2018-19 income year and later income years. S 4(2) formerly read:
4(2)
Paragraph (1)(b) does not apply in relation to an insurance policy under which a person has been insured continuously since the end of 24 May 2000, as long as the amount of any excess payable under the policy has not increased since that time.
S 4(1) and (2) substituted for s 4(1) to (3) by No 32 of 2007, s 3 and Sch 2 item 4, effective 1 April 2007. S 4(2) formerly read:
4(2)
However, for the purposes of this Act a person is not covered by an insurance policy that provides private patient hospital cover if:
(a)
the insurance policy that covers the person is an applicable benefits arrangement that:
(i)
is modified in accordance with an election described in paragraph (ba) of Schedule 1 to the National Health Act 1953; and
(ii)
is associated with a health benefits fund conducted by a registered organization under that Act; and
(b)
the difference between the lesser benefits mentioned in that paragraph and the benefits payable in accordance with a corresponding applicable benefits arrangement not modified in accordance with such an election is more than:
(i)
$1,000; or
(ii)
$500, if there is only one contributor (as defined in that Act) to the health benefits fund for the applicable benefits arrangement mentioned in paragraph (a) of this subsection and benefits are not payable under the arrangement in respect of the contributor's dependants (as defined in that Act), if any.
4(3)
(Repealed by No 32 of 2007)
History
S 4(1) and (2) substituted for s 4(1) to (3) by No 32 of 2007, s 3 and Sch 2 item 4, effective 1 April 2007. S 4(3) formerly read:
4(3)
Subsection (2) does not prevent a person from being covered by an insurance policy that provides private patient hospital cover if:
(a)
the person has been covered by the policy continuously since the end of 24 May 2000; and
(b)
the election mentioned in subparagraph (2)(a)(i) was made before the end of 24 May 2000.
4(4)
(Repealed by No 99 of 2018)
History
S 4(4) repealed by No 99 of 2018, s 3 and Sch 1 item 3, effective 1 April 2019 and applicable in relation to the 2018-19 income year and later income years. S 4(4) formerly read:
4(4)
For the purposes of this Act, a person is also covered by an insurance policy that provides private patient hospital cover if:
(a)
the policy is issued by a person to whom subsection 67(3) of the National Health Act 1953 applied immediately before the commencement of the Private Health Insurance Act 2007; and
(b)
in a case where the person referred to in paragraph (a) had been, immediately before that commencement, a registered organisation within the meaning of the National Health Act 1953 - the policy would have been, immediately before that commencement, an applicable benefits arrangement, within the meaning of section 5A of that Act, to which paragraph 5A(1)(a) of that Act would apply.
S 4(4) amended by No 32 of 2007, s 3 and Sch 2 items 5 and 6, by substituting "applied immediately before the commencement of the Private Health Insurance Act 2007" for "applies" in para (a) and substituting para (b), effective 1 April 2007. Para (b) formerly read:
(b)
if the person referred to in paragraph (a) were a registered organization within the meaning of that Act - the policy would be an applicable benefits arrangement, within the meaning of section 5A of that Act, to which paragraph 5A(1)(a) of that Act would apply.
4(5)
(Repealed by No 99 of 2018)
History
S 4(5) repealed by No 99 of 2018, s 3 and Sch 1 item 3, effective 1 April 2019 and applicable in relation to the 2018-19 income year and later income years. S 4(5) formerly read:
4(5)
However, for the purposes of this Act a person is not covered by an insurance policy that provides private patient hospital cover if:
(a)
the person is covered by an insurance policy described in subsection (4); and
(b)
any excess payable in respect of benefits under the policy is more than:
(i)
$500 in any 12 month period, in relation to a policy under which only one person is insured; and
(ii)
$1,000 in any 12 month period, in relation to any other policy.
S 4(5) amended by No 32 of 2007, s 3 and Sch 2 item 7, by substituting para (b), effective 1 April 2007. Para (b) formerly read:
(b)
under subsection (2), the person would not be covered by an insurance policy that provides private patient hospital cover for the purposes of this Act, assuming that:
(i)
the policy mentioned in paragraph (a) of this subsection were a policy described in subsection (1); and
(ii)
the person issuing the policy were a registered organization conducting a health benefits fund under the National Health Act 1953; and
(iii)
the policy were associated with the fund.
4(6)
(Repealed by No 32 of 2007)
History
S 4(6) repealed by No 32 of 2007, s 3 and Sch 2 item 8, effective 1 April 2007. S 4(6) formerly read:
4(6)
Subsections (2) and (5) do not limit the circumstances in which, for the purposes of this Act, a person is not covered by an insurance policy that provides private patient hospital cover.
Example:
For the purposes of this Act, a person is also not covered by an insurance policy that provides private patient hospital cover if the person is not covered by an insurance policy described in subsection (1) or (4).
History
S 4 substituted by No 76 of 2000.
SECTION 5
5
WHO IS A
DEPENDANT
OF A PERSON?
A person is a
dependant
of another person for a period if the person would be a dependant ofthe other person for the period for the purposes of Part VIIB of the Assessment Act, disregarding subsections 251R(4), (5), (6B), (6C) and (6D) of that Act.
5A
(Repealed) SECTION 5A WHAT IS THE SINGLES SURCHARGE THRESHOLD?
(Repealed by No 28 of 2012)
History
S 5A repealed by No 28 of 2012, s 3 and Sch 1 item 7, applicable to the 2012-13 year of income and later years of income. S 5A formerly read:
SECTION 5A WHAT IS THE
SINGLES SURCHARGE THRESHOLD?
5A(1)
The
singles surcharge threshold
for a person for the 2008-09 year of income is $70,000. This amount is indexed annually.
Indexation of singles surcharge threshold
5A(2)
The amount of the singles surcharge threshold is indexed annually by:
(a)
multiplying the singles surcharge threshold for the 2008-09 year of income by its indexation factor; and
(b)
rounding the result in paragraph (a) down to the nearest multiple of $1,000.
5A(3)
[Factor 1 or less]
The singles surcharge threshold is not indexed if its indexation factor is 1 or less.
5A(4)
[Formula]
The
indexation factor
is:
| |
Index number mentioned in subsection (6) for the quarter ending on 31 December just before the start of the relevant financial year |
|
| |
Index number mentioned in subsection (6) for the quarter ending on 31 December 2007 |
|
5A(5)
The indexation factor mentioned in subsection (4) is calculated to 3 decimal places (rounding up if the fourth decimal place is 5 or more).
5A(6)
The
index number
for a quarter is the estimate of full-time adult average weekly ordinary time earnings for the middle month of the quarter first published by the Australian Statistician for that month.
S 5A inserted by No 110 of 2008, s 3 and Sch 1 item 2, applicable to assessments for the 2008-09 year of income and later years of income. For transitional provision, see note under definition of "singles surcharge threshold" in s 3(1).
SECTION 6
WHAT IS A
TIER 2 EARNER
AND
TIER 3 EARNER
6(1)
Subject to this section, for the purposes of this Act:
(a)
tier 2 earner
, for a year of income, means a tier 2 earner (within the meaning of the
Private Health Insurance Act 2007) for the financial year corresponding to the year of income; and
(b)
tier 3 earner
, for a year of income, means a tier 3 earner (within the meaning of that Act) for the financial year corresponding to the year of income.
6(2)
In determining whether a person is a
tier 2 earner
or
tier 3 earner
for a year of income for the purposes of this Act, section 22-30 of the
Private Health Insurance Act 2007 operates with the modification set out in subsection (3).
6(3)
Replace paragraph 22-30(1)(b)of the
Private Health Insurance Act 2007 with the following paragraph:
(b)
on any day in the year, the person has one or more dependants (within the meaning of the A New Tax System (Medicare Levy Surcharge - Fringe Benefits) Act 1999), other than a dependant to whom the person is married (within the meaning of that Act):
History
S 6 substituted by No 28 of 2012, s 3 and Sch 1 item 7, applicable to the 2012-13 year of income and later years of income. S 6 formerly read:
SECTION 6 WHAT IS THE
FAMILY SURCHARGE THRESHOLD
?
6(1)
The
family surcharge threshold
for a person for a year of income is an amount equal to double the singles surcharge threshold for the year of income.
History
S 6(1) amended by No 110 of 2008, s 3 and Sch 1 item 3, by substituting "an amount equal to double the singles surcharge threshold for the year of income" for "$100,000", applicable to assessments for the 2008-09 year of income and later years of income. For transitional provision, see note under definition of "singles surcharge threshold" in s 3(1).
6(2)
However, if the person has 2 or more dependants who are children, the
family surcharge threshold
for the person for the year of income is the sum of:
(a)
an amount equal to double the singles surcharge threshold for the year of income; and
(b)
the result of the following formula:
$1,500 × (Number of dependants who are children − 1)
Example:
If a person has 3 dependants who are children, the family surcharge threshold for the 2008-09 year of income is:
$140,000 + ($1,500 × 2 ) = $143,000
History
S 6(2) substituted by No 110 of 2008, s 3 and Sch 1 item 4, applicable to assessments for the 2008-09 year of income and later years of income. For transitional provision, see note under definition of "singles surcharge threshold" in s 3(1). S 6(2) formerly read:
6(2)
However, if the person has 2 or more dependants who are children, the
family surcharge threshold
for the person for the year of income is the amount worked out using the formula:
| $100,000 + ($1,500 × (Number of dependants who are children − 1)) |
Example:
If a person has 3 dependants who are children, the family surcharge threshold is:
$100,000 + ($1,500 × (3 − 1)) = $103,000
SECTION 7
WHEN ARE PEOPLE
MARRIED
?
De facto couples treated as if married
7(1)
This Act applies to 2 persons (whether of the same sex or different sexes) as if they were married to each other for a period if:
(a)
their relationship is registered for the period under a law of a State or Territory prescribed for the purposes of section
2E of the
Acts Interpretation Act 1901 as a kind of relationship prescribed for the purposes of that section; or
(b)
they lived together in a relationship as a couple on a genuine domestic basis for the period, although not legally married to each other.
History
S 7(1) amended by No 46 of 2011, s 3 and Sch 2 item 65, by substituting "section 2E" for "section 22B" in para (a), effective 27 December 2011.
No 46 of 2011, s 3 and Sch 3 items 10 and 11 contain the following saving and transitional provisions:
10 Saving - appointments
10
The amendments made by Schedule 2 do not affect the validity of an appointment that was made under an Act before the commencement of this item and that was in force immediately before that commencement.
11 Transitional regulations
11
The Governor-General may make regulations prescribing matters of a transitional nature (including prescribing any saving or application provisions) relating to the amendments and repeals made by Schedules 1 and 2.
S 7(1) substituted by No 144 of 2008, s 3 Sch 14 item 1, applicable to the 2009-2010 year of income and later years of income. S 7(1) formerly read:
7(1)
De facto couples treated as if married.
This Act applies to a man and a woman who have lived together as husband and wife on a bona fide domestic basis for a period, although not legally married to each other, as if:
(a)
they were married to each other for the period; and
(b)
neither of them were married to anyone else for the period.
7(1A)
If, during the period, either or both of the persons was legally married to another person, or in a relationship mentioned in paragraph (1)(a) with another person, this Act applies as if the person or persons were not legally married to, or in a relationship mentioned in paragraph (1)(a) with, the other person.
History
S 7(1A) inserted by No 144 of 2008, s 3 and Sch 14 item 1, applicable to the 2009-2010 year of income and later years of income.
History
S 7(1A) inserted by No 144 of 2008.
7(2)
Persons living separately taken not to be married.
A person is taken not to be married to another person if they are living separately and apart.
7(3)
New widows and widowers taken to be married until end of year.
If:
(a)
the last person (the
deceased
) to whom another person was married during a year of income died during the year of income; and
(b)
the death occurred while they were married;
the living person is taken to be married to the deceased during the period starting on the day the deceased died and ending on 30 June of the year of income.
SECTION 8
8
WHO IS A
PRESCRIBED PERSON
?
A person is a
prescribed person
for a period if the person would be a prescribed person for the purposes of Part VIIB of the Assessment Act during the period, disregarding subsection 251U(3) of that Act.
SECTION 9
9
APPLICATION
This Act extends to every external Territory referred to in the definition of
Australia
.
History
S 9 inserted by No 52 of 2015, s 3 and Sch 1 item 2, applicable in relation to the 2016-17 year of income and later years of income.
Former s 9 repealed by No 27 of 2009, s 3 and Sch 3 item 25, applicable in relation to income years starting on or after 1 July 2009. S 9 formerly read:
SECTION 9 WHAT IS A PERSON'S
TAXABLE INCOME
FOR A YEAR OF INCOME?
9(1)
A person's
taxable income
for a year of income is the amount that would be the person's taxable income for the purposes of the Assessment Act apart from subsection 271-105(1) of Schedule 2F to that Act.
9(2)
However, if a person is entitled to a tax offset under subsection 301-20(2) of the Income Tax Assessment Act 1997 for a year of income, the person's
taxable income
for the year of income is the amount worked out under subsection (1), reduced by the amount mentioned in subsection 301-20(3) of that Act for the person for the year.
History
S 9(2) substituted by No 15 of 2007, s 3 and Sch 1 item 9, applicable to the 2007-2008 income year and later years. S 9(2) formerly read:
9(2)
However, if a person is entitled under subsection 159SA(1) of the Assessment Act to a rebate for a year of income to ensure that the rate of tax on one or more rebatable amounts specified in Table 1 in that subsection is 0%, the person's
taxable income
for the year of income is the amount worked out under subsection (1), reduced by the total of the rebatable amounts.
PART 2 - IMPOSITION OF SURCHARGE
SECTION 10
IMPOSITION OF MEDICARE LEVY SURCHARGE
10(1)
Surcharge imposed on reportable fringe benefits total.
Medicare levy surcharge is imposed on the reportable fringe benefits total for a year of income of a person who is a resident of Australia at any time during the year of income.
Note:
Subdivision 61-L (tax offset for Medicare levy surcharge (lump sum payments in arrears)) of the Income Tax Assessment Act 1997 might provide a tax offset for a person if Medicare levy surcharge is payable by the person.
History
S 10(1) amended by No 80 of 2006, s 3 and Sch 6 item 1, by inserting the note at the end, effective 30 June 2006.
10(2)
Who is a
resident of Australia
- general rule.
A person is a
resident of Australia
if he or she is a resident of Australia as defined in subsection 6(1) of the Assessment Act.
10(3)
(Repealed by No 52 of 2015)
History
S 10(3) repealed by No 52 of 2015, s 3 and Sch 1 item 3, applicable in relation to the 2016-17 year of income and later years of income. S 10(3) formerly read:
10(3)
Exception for Norfolk Island.
However, a person is not a
resident of Australia
for the purposes of this Act if he or she is a resident of Australia as defined in subsection 6(1) of the Assessment Act merely because subsection 7A(2) of that Act treats Norfolk Island as part of Australia.
10(4)
Application: 1999-2000 year of income onwards.
Subsection (1) applies to the 1999-2000 year of income and later years of income.
PART 3 - AMOUNT OF SURCHARGE PAYABLE
Division 1 - General rule
SECTION 11
11
AMOUNT OF SURCHARGE PAYABLE
General rule.
The amount of surcharge payable by a person on the person's reportable fringe benefits total for a year of income is the total of the amounts worked out under whichever of Divisions 2, 3 and 4 apply to the person for a period in the year of income.
History
S 11 renumbered from s 11(1) by No 12 of 2012, s 3 and Sch 6 item 22, by omitting "(1)" before "The amount", effective 21 March 2012.
11(2)-(3)
(Repealed by No 53 of 2000)
Division 2 - Amount of surcharge for single person without dependants
SECTION 12
AMOUNT OF SURCHARGE FOR SINGLE PERSON WITHOUT DEPENDANTS
12(1)
[Application]
This Division applies to a person for a period in a year of income if:
(a)
the person's income for surcharge purposes for the year of income exceeds the person's singles tier 1 threshold for the year of income; and
(b)
during the whole of the period:
(i)
the person is not a married person; and
(ii)
the person does not have any dependants; and
(iii)
the person is not covered by an insurance policy that provides private patient hospital cover; and
(iv)
the person is not a prescribed person.
History
S 12(1) amended by No 28 of 2012, s 3 and Sch 1 item 8, by substituting "the person's singles tier 1 threshold" for "the singles surcharge threshold" in para (a), applicable to the 2012-13 year of income and later years of income.
S 12(1) amended by No 27 of 2009, s 3 and Sch 3 item 26, by substituting para (a), applicable in relation to income years starting on or after 1 July 2009. Para (a) formerly read:
(a)
the sum of the following is more than the singles surcharge threshold for the year of income:
(i)
the person's taxable income for the year of income;
(ii)
the person's reportable fringe benefits total for the year of income; and
S 12(1) amended by No 110 of 2008, s 3 and Sch 1 item 5, by substituting "the singles surcharge threshold for the year of income" for "$50,000" in para (a), applicable to assessments for the 2008-09 year of income and later years of income. For transitional provision, see note under definition of "singles surcharge threshold" in s 3(1).
12(2)
[1% of total]
The amount of surcharge payable on the person's reportable fringe benefits total for the year of income is 1% of that total if this Division applies to the person for the whole of the year of income.
12(3)
[Part of year calculation]
If this Division applies to the person for only some of the days of the year of income, the amount of surcharge payable on the person's reportable fringe benefits total for the year of income includes the amount worked out using the formula:
12(4)
Increase the amount of each percentage mentioned in subsections (2) and (3) by 0.25 of a percentage point if the person is a tier 2 earner for the year of income.
History
S 12(4) inserted by No 28 of 2012, s 3 and Sch 1 item 9, applicable to the 2012-13 year of income and later years of income.
12(5)
Increase the amount of each percentage mentioned in subsections (2) and (3) by 0.5 of a percentage point if the person is a tier 3 earner for the year of income.
History
S 12(5) inserted by No 28 of 2012, s 3 and Sch 1 item 9, applicable to the 2012-13 year of income and later years of income.
Division 3 - Amount of surcharge for single person with dependants
SECTION 13
AMOUNT OF SURCHARGE FOR SINGLE PERSON WITH DEPENDANTS
13(1)
Application.
This Division applies to a person for a period in a year of income if:
(a)
the person's income for surcharge purposes for the year of income exceeds the person's family tier 1 threshold for the year of income; and
(b)
during the whole of the period:
(i)
the person is not a married person; and
(ii)
the person has one or more dependants; and
(iii)
the person, or at least one of the person's dependants, is not covered by an insurance policy that provides private patient hospital cover; and
(iv)
the person is not a prescribed person.
History
S 13(1) amended by No 28 of 2012, s 3 and Sch 1 item 10, by substituting "family tier 1 threshold" for "family surcharge threshold" in para (a), applicable to the 2012-13 year of income and later years of income.
S 13(1) amended by No 27 of 2009, s 3 and Sch 3 item 27, by substituting para (a), applicable in relation to income years starting on or after 1 July 2009. Para (a) formerly read:
(a)
the sum of the following is more than the family surcharge threshold for the person for the year of income:
(i)
the person's taxable income for the year of income;
(ii)
the person's reportable fringe benefits total for the year of income; and
13(2)
Special rules for applying subparagraph (1)(b)(iii).
For the purposes of subparagraph (1)(b)(iii):
(a)
the person is taken to be covered during the whole of the period by an insurance policy that provides private patient hospital cover if, apart from subsection
251U(2) of the Assessment Act, the person would be a prescribed person for the period because of paragraph
251U(1)(a),
(b),
(ca),
(caa) or
(cb) of that Act; and
(b)
disregard each of the person's dependants who:
(i)
is a prescribed person for the period; or
(ii)
would be a prescribed person for the period apart from subsection 251U(2) of the Assessment Act.
Note:
Paragraphs 251U(1)(a), (b), (ca), (caa) and (cb) of the Assessment Act provide that the following are prescribed persons:
• defence personnel and members of their families who can get free medical treatment;
• people who can get free medical treatment under the Veterans' Entitlements Act 1986, the Military Rehabilitation and Compensation Act 2004, the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006 or the Treatment Benefits (Special Access) Act 2019;
• people who receive certain payments under the Social Security Act 1991 or the Veterans' Entitlements Act 1986.
Subsection 251U(2) of the Assessment Act provides that a person who would otherwise be a prescribed person is not a prescribed person if one or more of his or her dependants are not prescribed persons.
History
S 13(2) amended by No 26 of 2018, s 3 and Sch 5 items 22 and 23, by omitting "(c)," after "(b)," from para (a) and the note, effective 20 September 2020.
S 13(2) amended by No 42 of 2019, s 3 and Sch 2 item 5, by substituting ", the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006 or the Treatment Benefits (Special Access) Act 2019" for "or the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006" in the note, effective 6 April 2019. No 42 of 2019, s 3 and Sch 1 item 1 provides that the Treatment Benefits (Special Access) Act 2019 applies in relation to the provision of treatment, travel expenses incurred and the payment of pharmaceutical supplement on or after 1 July 2019.
S 13(2) amended by No 59 of 2017, s 3 and Sch 1 item 22, by substituting ", the Military Rehabilitation and Compensation Act 2004 or the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006" for "or the Military Rehabilitation and Compensation Act 2004" in the note, effective 1 July 2017.
S 13(2) amended by No 52 of 2004, s 3 and Sch 3 item 11, by substituting "under the Veterans' Entitlements Act 1986 or the Military Rehabilitation and Compensation Act 2004" for "under the Veterans' Entitlements Act 1986" in the note, effective 1 July 2004.
13(3)
Amount of surcharge payable for whole year.
The amount of surcharge payable on the person's reportable fringe benefits total for the year of income is 1% of that total if this Division applies to the person for the whole of the year of income.
13(4)
Amount of surcharge payable for part of year.
If this Division applies to the person for only some of the days of the year of income, the amount of surcharge payable on the person's reportable fringe benefits total for the year of income includes the amount worked out using the formula:
| |
(1% of the person's reportable
fringe benefits total for the
year of income) |
× |
Number of those days
Number of days in the
year of income |
|
13(5)
Increase the amount of each percentage mentioned in subsections (3) and (4) by 0.25 of a percentage point if the person is a tier 2 earner for the year of income.
History
S 13(5) inserted by No 28 of 2012, s 3 and Sch 1 item 11, applicable to the 2012-13 year of income and later years of income.
13(6)
Increase the amount of each percentage mentioned in subsections (3) and (4) by 0.5 of a percentage point if the person is atier 3 earner for the year of income.
History
S 13(6) inserted by No 28 of 2012, s 3 and Sch 1 item 11, applicable to the 2012-13 year of income and later years of income.
Division 4 - Amount of surcharge for married person
SECTION 14
WHO DOES THIS DIVISION APPLY TO?
Application
14(1)
This Division applies to a person for a period in a year of income if, during the whole of the period:
(a)
the person is a married person; and
(b)
the person, or at least one of the person's dependants, is not covered by an insurance policy that provides private patient hospital cover; and
(c)
the person is not a prescribed person.
Special rules for applying paragraph (1)(b)
14(2)
For the purposes of paragraph (1)(b):
(a)
the person is taken to be covered during the whole of the period by an insurance policy that provides private patient hospital cover if, apart from subsection
251U(2) of the Assessment Act, the person would be a prescribed person for the period because of paragraph
251U(1)(a), (b), (ca), (caa) or (cb) of that Act; and
(b)
disregard each of the person's dependants who:
(i)
is a prescribed person for the period; or
(ii)
would be a prescribed person for the period apart from subsection 251U(2) of the Assessment Act.
Note:
Paragraphs 251U(1)(a), (b), (ca), (caa) and (cb) of the Assessment Act provide that the following are prescribed persons:
• defence personnel and members of their families who can get free medical treatment;
• people who can get free medical treatment under the Veterans' Entitlements Act 1986, the Military Rehabilitation and Compensation Act 2004, the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006 or the Treatment Benefits (Special Access) Act 2019;
• people who receive certain payments under the Social Security Act 1991 or the Veterans' Entitlements Act 1986.
Subsection 251U(2) of the Assessment Act provides that a person who would otherwise be a prescribed person is not a prescribed person if one or more of his or her dependants are not prescribed persons.
History
S 14(2) amended by No 26 of 2018, s 3 and Sch 5 items 24 and 25, by omitting "(c)," after "(b)," from para (a) and the note, effective 20 September 2020.
S 14(2) amended by No 42 of 2019, s 3 and Sch 2 item 6, by substituting ", the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006 or the Treatment Benefits (Special Access) Act 2019" for "or the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006" in the note, effective 6 April 2019. No 42 of 2019, s 3 and Sch 1 item 1 provides that the Treatment Benefits (Special Access) Act 2019 applies in relation to the provision of treatment, travel expenses incurred and the payment of pharmaceutical supplement on or after 1 July 2019.
S 14(2) amended by No 59 of 2017, s 3 and Sch 1 item 23, bysubstituting ", the Military Rehabilitation and Compensation Act 2004 or the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006" for "or the Military Rehabilitation and Compensation Act 2004" in the note, effective 1 July 2017.
S 14(2) amended by No 52 of 2004.
SECTION 15
AMOUNT OF SURCHARGE IF THIS DIVISION APPLIES FOR WHOLE YEAR
When this section applies
15(1)
The amount of surcharge payable on the person's reportable fringe benefits total for the year of income is 1% of that total if:
(a)
this Division applies to the person for the whole of the year of income; and
(b)
the sum of the person's income for surcharge purposes, and the person's spouse's income for surcharge purposes, for the year of income exceeds the person's family tier 1 threshold for the year of income; and
(c)
the person's income for surcharge purposes for the year of income exceeds $26,000.
History
S 15(1) amended by No 4 of 2024, s 3 and Sch 1 item 1, by substituting "$26,000" for "$24,276" in para (c), effective 6 March 2024 and applicable in relation to assessments for the 2023-24 year of income and later years of income.
S 15(1) amended by No 28 of 2023, s 3 and Sch 1 item 1, by substituting "$24,276" for "$23,365" in para (c), effective 24 June 2023 and applicable to assessments for the 2022-23 year of income and later years of income.
S 15(1) amended by No 14 of 2022, s 3 and Sch 1 item 1, by substituting "$23,365" for "$23,226" in para (c), effective 1 April 2022 and applicable to assessments for the 2021-22 year of income and later years of income.
S 15(1) amended by No 61 of 2021, s 3 and Sch 1 item 1, by substituting "$23,226" for "$22,801" in para (c), effective 30 June 2021 and applicable to assessments for the 2020-21 year of income and later years of income.
S 15(1) amended by No 22 of 2020, s 3 and Sch 14 item 1, by substituting "$22,801" for "$22,398" in para (c), effective 25 March 2020 and applicable to assessments for the 2019-20 year of income and later years of income.
S 15(1) amended by No 29 of 2019, s 3 and Sch 1 item 1, by substituting "$22,398" for "$21,980" in para (c), effective 6 April 2019 and applicable to assessments for the 2018-19 year of income and later years of income.
S 15(1) amended by No 69 of 2018, s 3 and Sch 1 item 1, by substituting "$21,980" for "$21,655" in para (c), applicable to assessments for the 2017-18 year of income and later years of income.
S 15(1) amended by No 58 of 2017, s 3 and Sch 1 item 1, by substituting "$21,655" for "$21,335" in para (c), applicable to assessments for the 2016-17 year of income and later years of income.
S 15(1) amended by No 39 of 2016, s 3 and Sch 1 item 1, by substituting "$21,335" for "$20,896" in para (c), applicable to assessments for the 2015-16 year of income and later years of income.
S 15(1) amended by No 69 of 2015, s 3 and Sch 1 item 1, by substituting "$20,896" for "$20,542" in para (c), applicable to assessments for the 2014-15 year of income and later years of income.
S 15(1) amended by No 88 of 2013, s 3 and Sch 7 item 194, by inserting "$" before "20,542" in para (c), effective 1 July 2012.
S 15(1) amended by No 28 of 2012, s 3 and Sch 1 item 12, by substituting "family tier 1 threshold" for "family surcharge threshold" in para (b), applicable to the 2012-13 year of income and later years of income.
S 15(1) amended by No 159 of 2011 (as amended by No 86 of 2012), s 3 and Sch 2 item 1, by substituting "$20,542" for "$19,404" in para (c), applicable to the 2012-13 year of income and later years of income.
S 15(1) amended by No 86 of 2012, s 3 and Sch 1 item 1, by substituting "$19,404" for "$18,839" in para (c), applicable to the 2011-12 year of income.
S 15(1) amended by No 44 of 2011, s 3 and Sch 1 item 1, by substituting "$18,839" for "$18,488" in para (c), applicable to assessments for the 2010-11 year of income and later years of income.
S 15(1) amended by No 78 of 2010, s 3 and Sch 1 item 1, by substituting "$18,488" for "$17,794" in para (c), applicable to assessments for the 2009-10 year of income and later years of income.
S 15(1) amended by No 41 of 2009, s 3 and Sch 1 item 1, by substituting "$17,794" for "$17,309" in para (c), applicable to assessments for the 2008-09 year of income and later years of income.
S 15(1) amended by No 27 of 2009, s 3 and Sch 3 item 28, by substituting paras (b) and (c), applicable in relation to income years starting on or after 1 July 2009. Paras (b) and (c) formerly read:
(b)
the sum of the following exceeds the family surcharge threshold for the person for the year of income:
(i)
the person's taxable income for the year of income;
(ii)
the person's reportable fringe benefits total for the year of income;
(iii)
the person's spouse's taxable income for the year of income;
(iv)
the person's spouse's reportable fringe benefits total (if any) for the year of income; and
(c)
the sum of the person's taxable income and reportable fringe benefits total for the year of income is more than $17,309.
S 15(1) amended by No 50 of 2008, s 3 and Sch 1 item 1, by substituting "$17,309" for "$16,740" in para (c), applicable to assessments for the 2007-08 year of income and later years of income.
S 15(1) amended by No 75 of 2007, s 3 and Sch 1 item 14, by substituting "$16,470" for "$16,284" in para (c), applicable to assessments for the 2006-2007 year of income and later years of income.
S 15(1) amended by No 59 of 2006, s 3 and Sch 1 item 1, by substituting "$16,284" for "$15,902" in para (c), applicable to assessments for the 2005-2006 year of income and later years of income.
S 15(1) amended by No 62 of 2005, s 3 and Sch 1 item 1, by substituting "$15,902" for "$15,529" in para (c), applicable to assessments for the 2004-2005 year of income and later years of income.
S 15(1) amended by No 84 of 2004, No 67 of 2003, No 39 of 2002, No 12 of 2001, No 54 of 2000.
Special rule if person's spouse is a presently entitled beneficiary in a trust estate
15(2)
In working out whether subsection
(1) applies to a person whose spouse is a beneficiary presently entitled to a share in the net income of a trust estate in respect of which the trustee is liable to be assessed under section
98 of the Assessment Act, assume that:
(a)
the spouse's income for surcharge purposes included that share; and
(b)
subsection
271-105(1) in Schedule
2F to that Act did not apply in working out the net income of the trust estate.
History
S 15(2) amended by No 27 of 2009, s 3 and Sch 3 item 29, by substituting "income for surcharge purposes" for "taxable income" in para (a), applicable in relation to income years starting on or after 1 July 2009.
S 15(2) inserted by No 53 of 2000.
15(3)
Increase the amount of the percentage mentioned in subsection
(1) by 0.25 of a percentage point if the person is a tier 2 earner for the year of income.
History
S 15(3) inserted by No 28 of 2012, s 3 and Sch 1 item 13, applicable to the 2012-13 year of income and later years of income.
15(4)
Increase the amount of the percentage mentioned in subsection
(1) by 0.5 of a percentage point if the person is a tier 3 earner for the year of income.
History
S 15(4) inserted by No 28 of 2012, s 3 and Sch 1 item 13, applicable to the 2012-13 year of income and later years of income.
SECTION 16
AMOUNT OF SURCHARGE IF THIS DIVISION APPLIES FOR PART OF THE YEAR
When this section applies
16(1)
The amount of surcharge payable on a person's reportable fringe benefits total for a year of income includes the amount worked out using the formula in subsection
(4) if:
(a)
this Division applies to the person for only part of the year of income; and
(b)
either subsection
(2) or
(3) applies to the person.
Person married for whole year of income
16(2)
This subsection applies to the person if:
(a)
the person is married for the whole of the year of income; and
(b)
the sum of the person's income for surcharge purposes, and the person's spouse's income for surcharge purposes, for the year of income exceeds the person's family tier 1 threshold for the year of income; and
(c)
the person's income for surcharge purposes for the year of income exceeds $26,000.
History
S 16(2) amended by No 4 of 2024, s 3 and Sch 1 item 1, by substituting "$26,000" for "$24,276" in para (c), effective 6 March 2024 and applicable in relation to assessments for the 2023-24 year of income and later years of income.
S 16(2) amended by No 28 of 2023, s 3 and Sch 1 item 1, by substituting "$24,276" for "$23,365" in para (c), effective 24 June 2023 and applicable to assessments for the 2022-23 year of income and later years of income.
S 16(2) amended by No 14 of 2022, s 3 and Sch 1 item 1, by substituting "$23,365" for "$23,226" in para (c), effective 1 April 2022 and applicable to assessments for the 2021-22 year of income and later years of income.
S 16(2) amended by No 61 of 2021, s 3 and Sch 1 item 1, by substituting "$23,226" for "$22,801" in para (c), effective 30 June 2021 and applicable to assessments for the 2020-21 year of income and later years of income.
S 16(2) amended by No 22 of 2020, s 3 and Sch 14 item 1, by substituting "$22,801" for "$22,398" in para (c), effective 25 March 2020 and applicable to assessments for the 2019-20 year of income and later years of income.
S 16(2) amended by No 29 of 2019, s 3 and Sch 1 item 1, by substituting "$22,398" for "$21,980" in para (c), effective 6 April 2019 and applicable to assessments for the 2018-19 year of income and later years of income.
S 16(2) amended by No 69 of 2018, s 3 and Sch 1 item 1, by substituting "$21,980" for "$21,655" in para (c), applicable to assessments for the 2017-18 year of income and later years of income.
S 16(2) amended by No 58 of 2017, s 3 and Sch 1 item 1, by substituting "$21,655" for "$21,335" in para (c), applicable to assessments for the 2016-17 year of income and later years of income.
S 16(2) amended by No 39 of 2016, s 3 and Sch 1 item 1, by substituting "$21,335" for "$20,896" in para (c), applicable to assessments for the 2015-16 year of income and later years of income.
S 16(2) amended by No 69 of 2015, s 3 and Sch 1 item 1, by substituting "$20,896" for "$20,542" in para (c), applicable to assessments for the 2014-15 year of income and later years of income.
S 16(2) amended by No 88 of 2013, s 3 and Sch 7 item 194, by inserting "$" before "20,542" in para (c), effective 1 July 2012.
S 16(2) amended by No 28 of 2012, s 3 and Sch 1 item 14, by substituting "family tier 1 threshold" for "family surcharge threshold" in para (b), applicable to the 2012-13 year of income and later years of income.
S 16(2) amended by No 159 of 2011 (as amended by No 86 of 2012), s 3 and Sch 2 item 1, by substituting "$20,542" for "$19,404" in para (c), applicable to the 2012-13 year of income and later years of income.
S 16(2) amended by No 86 of 2012, s 3 and Sch 1 item 1, by substituting "$19,404" for "$18,839" in para (c), applicable to the 2011-12 year of income.
S 16(2) amended by No 44 of 2011, s 3 and Sch 1 item 1, by substituting "$18,839" for "$18,488" in para (c), applicable to assessments for the 2010-11 year of income and later years of income.
S 16(2) amended by No 78 of 2010, s 3 and Sch 1 item 1, by substituting "$18,488" for "$17,794" in para (c), applicable to assessments for the 2009-10 year of income and later years of income.
S 16(2) amended by No 41 of 2009, s 3 and Sch 1 item 1, by substituting "$17,794" for "$17,309" in para (c), applicable to assessments for the 2008-09 year of income and later years of income.
S 16(2) amended by No 27 of 2009, s 3 and Sch 3 item 30, by substituting paras (b) and (c), applicable in relation to income years starting on or after 1 July 2009. Paras (b) and (c) formerly read:
(b)
the sum of the following is more than the family surcharge threshold for the person for the year of income:
(i)
the person's taxable income for the year of income;
(ii)
the person's reportable fringe benefits total for the year of income;
(iii)
the person's spouse's taxable income for the year of income;
(iv)
the person's spouse's reportable fringe benefits total (if any) for the year of income; and
(c)
the sum of the person's taxable income and reportable fringe benefits total for the year of income is more than $17,309.
S 16(2) amended by No 50 of 2008, s 3 and Sch 1 item 1, by substituting "$17,309" for "$16,740" in para (c), applicable to assessments for the 2007-08 year of income and later years of income.
S 16(2) amended by No 75 of 2007, s 3 and Sch 1 item 14, by substituting "$16,740" for "$16,284" in para (c), applicable to assessments for the 2006-2007 year of income and later years of income.
S 16(2) amended by No 59 of 2006, s 3 and Sch 1 item 1, by substituting "$16,284" for "$15,902" in para (c), applicable to assessments for the 2005-2006 year of income and later years of income.
S 16(2) amended by No 62 of 2005, No 84 of 2004, No 67 of 2003, No 39 of 2002, No 12 of 2001 and No 54 of 2000.
Person married for part of the year of income
16(3)
This subsection applies to the person if:
(a)
the person is married for only part of the year of income; and
(b)
the person's income for surcharge purposes for the year of income exceeds the person's family tier 1 threshold for the year of income.
History
S 16(3) amended by No 28 of 2012, s 3 and Sch 1 item 15, by substituting "family tier 1 threshold" for "family surcharge threshold" in para (b), applicable to the 2012-13 year of income and later years of income.
S 16(3) amended by No 27 of 2009, s 3 and Sch 3 item 31, by substituting para (b), applicable in relation to income years starting on or after 1 July 2009. Para (b) formerly read:
(b)
the sum of the person's taxable income and reportable fringe benefits total for the year of income is more than the family surcharge threshold.
S 16(3) amended by No 53 of 2000.
Amount of surcharge
16(4)
The amount of surcharge payable on the person's reportable fringe benefits total for the year of income includes the amount worked out using the formula:
| |
(1% of the person's reportable
fringe benefits total for the
year of income) |
× |
Number of applicable days
Number of days in the
year of income |
|
where:
number of applicable days
is the number of days in the year of income for which this Division applies to the person.
16(4A)
Increase the amount of the percentage mentioned in subsection
(4) by 0.25 of a percentage point if the person is a tier 2 earner for the year of income.
History
S 16(4A) inserted by No 28 of 2012, s 3 and Sch 1 item 16, applicable to the 2012-13 year of income and later years of income.
16(4B)
Increase the amount of the percentage mentioned in subsection
(4) by 0.5 of a percentage point if the person is a tier 3 earner for the year of income.
History
S 16(4B) inserted by No 28 of 2012, s 3 and Sch 1 item 16, applicable to the 2012-13 year of income and later years of income.
Special rule if person's spouse is a presently entitled beneficiary in a trust estate
16(5)
In working out whether subsection
(2) applies to a person whose spouse is a beneficiary presently entitled to a share in the net income of a trust estate in respect of which the trustee is liable to be assessed under section
98 of the Assessment Act, assume that:
(a)
the spouse's income for surcharge purposes included that share; and
(b)
subsection
271-105(1) in Schedule
2F to that Act did not apply in working out the net income of the trust estate.
History
S 16(5) amended by No 27 of 2009, s 3 and Sch 3 item32, by substituting "income for surcharge purposes" for "taxable income" in para (a), applicable in relation to income years starting on or after 1 July 2009.
S 16(5) substituted by No 53 of 2000.
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