Taxation (Deficit Reduction) Act (No. 3) 1993
(58 of 1993)
An Act to amend the law relating to taxation
Assented to 27 October 1993
Part 1 PRELIMINARY
1 Short title
This Act may be cited as the Taxation (Deficit Reduction) Act (No. 3) 1993.
2 Commencement
(1) This Act (other than Divisions 3 and 4 of Part 2) commences on the day on which it receives the Royal Assent.
(2) Division 3 of Part 2 commences on 1 July 1994.
(3) Division 4 of Part 2 commences at the beginning of the financial year fixed by regulations made by the Governor-General for the purposes of this subsection. The financial year must be later than the financial year beginning on 1 July 1994.
Part 2 AMENDMENT OF THE INCOME TAX RATES ACT 1986 TO GIVE EFFECT TO PERSONAL TAX CUTS
Division 1 Preliminary
3 Object of Part
The object of this Part is to implement personal tax cuts.
4 Principal Act
In this Part, "Principal Act" means the Income Tax Rates Act 1986*1*.
Income Tax Rates Act 1986
*1* No. 107, 1986, as amended. For previous amendments, see Nos. 60 and 138, 1987; Nos. 11, 78 and 118, 1988; Nos. 70, 98 and 106, 1989; No. 87, 1990; Nos 48, 100 and 216, 1991; Nos. 98 and 197, 1992; and Nos. 7 and 18, 1993.
Division 2 Tax cuts for 1993-94
5 Schedule 7
(1) The Principal Act is amended:
(a) by omitting the table in Part I of Schedule 7 and substituting the following table:
------------------------------------------------------------------------
Column 1 Column 2
Parts of taxable income of resident taxpayer % rate
------------------------------------------------------------------------
The part of taxable income that:
exceeds $5,400 but does not exceed $20,700 20%
exceeds $20,700 but does not exceed $36,000 35.5%
exceeds $36,000 but does not exceed $38,000 38.5%
exceeds $38,000 but does not exceed $50,000 44.125%
exceeds $50,000 47%
------------------------------------------------------------------------
(b) by omitting the table in Part II of Schedule 7 and substituting the following table-
------------------------------------------------------------------------
Column 1 Column 2
Parts of taxable income of non-resident taxpayer % rate
------------------------------------------------------------------------
The part of taxable income that:-
does not exceed $20,700 29%
exceeds $20,700 but does not exceed $36,000 35.5%
exceeds $36,000 but does not exceed $38,000 38.5%
exceeds $38,000 but does not exceed $50,000 44.125%
exceeds $50,000 47%
------------------------------------------------------------------------
(2) The amendments made by subsection (1) apply to assessments in respect of income of the 1993-94 year of income.
Division 3 Tax cuts starting in 1994-95
6 Schedule 7
(1) The Principal Act is amended:
(a) by omitting the table in Part I of Schedule 7 and substituting the following table:
------------------------------------------------------------------------
Column 1 Column 2
Parts of taxable income of resident taxpayer % rate
------------------------------------------------------------------------
The part of taxable income that-
exceeds $5,400 but does not exceed $20,700 20%
exceeds $20,700 but does not exceed $38,000 34%
exceeds $38,000 but does not exceed $50,000 43%
exceeds $50,000 47%
------------------------------------------------------------------------
(b) by omitting the table in Part II of Schedule 7 and substituting the following table:-
------------------------------------------------------------------------
Column 1 Column 2
Parts of taxable income of non-resident taxpayer % rate
------------------------------------------------------------------------
The part of taxable income that:-
does not exceed $20,700 29%
exceeds $20,700 but does not exceed $38,000 34%
exceeds $38,000 but does not exceed $50,000 43%
exceeds $50,000 47%
------------------------------------------------------------------------
(2) The amendments made by subsection (1) apply to assessments in respect of income of the 1994-95 year of income and of all later years of income.
(3) Subsection (2) has effect subject to Division 4.
Division 4 Additional tax cuts
7 Schedule 7
(1) The Principal Act is amended:
(a) by omitting the table in Part I of Schedule 7 and substituting the following table:
---------------------------------------------------------------------
Column 1 Column 2
Parts of taxable income of resident taxpayer % rate
------------------------------------------------------------------------
The part of taxable income that-
exceeds $5,400 but does not exceed $20,700 20%
exceeds $20,700 but does not exceed $40,000 30%
exceeds $40,000 but does not exceed $50,000 40%
exceeds $50,000 47%
------------------------------------------------------------------------
(b) by omitting the table in Part II of Schedule 7 and substituting the following table:-
------------------------------------------------------------------------
Column 1 Column 2
Parts of taxable income of non-resident taxpayer % rate
------------------------------------------------------------------------
The part of taxable income that:-
does not exceed $20,700 29%
exceeds $20,700 but does not exceed $40,000 30%
exceeds $40,000 but does not exceed $50,000 40%
exceeds $50,000 47%
------------------------------------------------------------------------
(2) The amendments made by subsection (1) apply to assessments in respect of income of the designated year of income and of all later years of income.
(3) In subsection (2):
"designated year of income" means the year of income to which the financial year fixed under subsection 2(3) relates.
Part 3 REPEAL OF THE TAX LEGISLATION AMENDMENT ACT 1992
8 Object of Part
The object of this Part is to repeal the Tax Legislation Amendment Act 1992. That Act, which provided for personal tax cuts, is superseded by the amendments made by this Act.
9 Repeal of the Tax Legislation Amendment Act 1992
The Tax Legislation Amendment Act 1992 is repealed.
Part 4 AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936
Division 1 Principal Act
10 Principal Act
In this Part, "Principal Act" means the Income Tax Assessment Act 1936*2*.
Income Tax Assessment Act 1936
*2* No. 27, 1936, as amended. For previous amendments, see No. 88, 1936; No. 5, 1937; No. 46, 1938; No. 30, 1939; Nos. 17 and 65, 1940; Nos. 58 and 69, 1941; Nos. 22 and 50, 1942; No. 10, 1943; Nos. 3 and 28, 1944; Nos. 4 and 37, 1945; No. 6, 1946; Nos. 11 and 63, 1947; No. 44, 1948; No. 66, 1949; No. 48, 1950; No. 44, 1951; Nos. 4, 28 and 90, 1952; Nos. 1, 28, 45 and 81, 1953; No. 43, 1954; Nos. 18 and 62, 1955; Nos. 25, 30 and 101, 1956; Nos. 39 and 65, 1957; No. 55, 1958; Nos. 12, 70 and 85, 1959; Nos. 17, 18, 58 and 108, 1960; Nos. 17, 27 and 94, 1961; Nos. 39 and 98, 1962; Nos. 34 and 69, 1963; Nos. 46, 68, 110 and 115, 1964; Nos. 33, 103 and 143, 1965; Nos. 50 and 83, 1966; Nos. 19, 38, 76 and 85, 1967; Nos. 4, 70, 87 and 148, 1968; Nos. 18, 93 and 101, 1969; No. 87, 1970; Nos. 6, 54 and 93, 1971; Nos. 5, 46, 47, 65 and 85, 1972; Nos. 51, 52, 53, 164 and 165, 1973; No. 216, 1973 (as amended by No. 20, 1974); Nos. 26 and 126, 1974; Nos. 80 and 117, 1975; Nos. 50, 53, 56, 98, 143, 165 and 205, 1976; Nos. 57, 126 and 127, 1977; Nos. 36, 57, 87, 90, 123, 171 and 172, 1978; Nos. 12, 19, 27, 43, 62, 146, 147 and 149, 1979; Nos. 19, 24, 57, 58, 124, 133, 134 and 159, 1980; Nos. 61, 92, 108, 109, 110, 111, 154 and 175, 1981; Nos. 29, 38, 39, 76, 80, 106 and 123, 1982; Nos. 14, 25, 39, 49, 51, 54 and 103, 1983; Nos. 14, 42, 47, 63, 76, 115, 124, 165 and 174, 1984; No. 123, 1984 (as amended by No. 65, 1985); Nos. 47, 49, 104, 123, 168 and 174, 1985; No. 173, 1985 (as amended by No. 49, 1986); Nos. 41, 46, 48, 51, 109, 112 and 154, 1986; No. 49, 1986 (as amended by No. 141, 1987); No. 52, 1986 (as amended by No. 141, 1987); No. 90, 1986 (as amended by No. 141, 1987); Nos. 23, 58, 61, 120, 145 and 163, 1987; No. 62, 1987 (as amended by No. 108, 1987); No. 108, 1987 (as amended by No. 138, 1987); No. 138, 1987 (as amended by No. 11, 1988); No. 139, 1987 (as amended by Nos. 11 and 78, 1988); Nos. 8, 11, 59, 75, 78, 80, 87, 95, 97, 127 and 153, 1988; Nos. 2, 11, 56, 70, 73, 105, 107, 129, 163 and 167, 1989; No. 97, 1989 (as amended by No. 105, 1989); Nos. 20, 35, 45, 57, 58, 60, 61, 87, 119 and 135, 1990; Nos. 4, 5, 6, 48, 55, 100, 203, 208 and 216, 1991; Nos. 3, 35, 69, 70, 80, 81, 92, 98, 101, 118, 138, 167, 190, 191, 208, 223, 224, 227, 237 and 238, 1992; and Nos. 7, 17, 18, 27 and 32, 1993.
Division 2 Amendment to provide for a rebate for low-income taxpayers
11 Object of Division
The object of this Division is to provide for a rebate of up to $150 for low-income taxpayers.
12 Insertion of new section
After section 159M of the Principal Act the following section is inserted:
Rebate for certain low-income taxpayers
"159N. (1) If a taxpayer's taxable income of a year of income is less than $24,450, the taxpayer is entitled to a rebate of tax in the taxpayer's assessment for the year of income.
"(2) The amount of the rebate is $150, reduced by 4 cents for every $1 of the amount (if any) by which the taxpayer's taxable income of the year of income exceeds $20,700.".
13 Application of amendment
The amendment made by this Division applies to assessments in respect of income of the 1993-94 year of income and of all later years of income.