Tax Laws Amendment (Personal Income Tax Reduction) Act 2005
(101 of 2005)
An Act to reduce personal income tax, and for other purposes
[Assented to 12 August 2005]
The Parliament of Australia enacts:
1 Short title
This Act may be cited as theTax Laws Amendment (Personal Income Tax Reduction) Act 2005.
2 Commencement
This Act commences on the day on which it receives the Royal Assent.
3 Schedule(s)
Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
4 Application
The amendments made by Schedule 1 apply to assessments for the 2005-2006 year of income and later years of income.
Schedule 1 Amendments
Income Tax Rates Act 1986
1 Clause 1 of Part I of Schedule 7 (table)
Repeal the table, substitute:
|
Tax rates for resident taxpayers |
||
|
Item |
For the part of the ordinary taxable income of the taxpayer that: |
The rate is: |
|
1 |
exceeds $6,000 but does not exceed $21,600 |
15% |
|
2 |
(a) for the 2005-06 year of income - exceeds $21,600 but does not exceed $63,000; and (b) for later years of income - exceeds $21,600 but does not exceed $70,000 |
30% |
|
3 |
(a) for the 2005-06 year of income - exceeds $63,000 but does not exceed $95,000; and (b) for later years of income - exceeds $70,000 but does not exceed $125,000 |
42% |
|
4 |
(a) for the 2005-06 year of income - exceeds $95,000; and (b) for later years of income - exceeds $125,000 |
47% |
2 Clause 1 of Part II of Schedule 7 (table)
Repeal the table, substitute:
|
Tax rates for non-resident taxpayers |
||
|
Item |
For the part of the ordinary taxable income of the taxpayer that: |
The rate is: |
|
1 |
does not exceed $21,600 |
29% |
|
2 |
(a) for the 2005-06 year of income - exceeds $21,600 but does not exceed $63,000; and (b) for later years of income - exceeds $21,600 but does not exceed $70,000 |
30% |
|
3 |
(a) for the 2005-06 year of income - exceeds $63,000 but does not exceed $95,000; and (b) for later years of income - exceeds $70,000 but does not exceed $125,000 |
42% |
|
4 |
(a) for the 2005-06 year of income - exceeds $95,000; and (b) for later years of income - exceeds $125,000 |
47% |
Medicare Levy Act 1986
3 Subsection 3(1) (paragraph (a) of the definition of phase-in limit )
Omit “$22,162”, substitute “$23,749”.
4 Subsection 3(1) (paragraph (a) of the definition of threshold amount )
Omit “$20,500”, substitute “$21,968”.