Tax Laws Amendment (2007 Budget Measures) Act 2007

(75 of 2007)

An Act to amend the law relating to taxation, and for related purposes

[21 June 2007]

The Parliament of Australia enacts:

[Minister's second reading speech made in - House of Representatives on 10 May 2007, Senate on 12 June 2007]

1 Short title

This Act may be cited as the Tax Laws Amendment (2007 Budget Measures) Act 2007.

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Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1 Budget taxation measures

Part 1 Dependent spouse tax offset

Income Tax Assessment Act 1936

1 Sub-subparagraph 23AB(7)(a)(ii)(D)

Omit all the words after “159J(2)”, substitute “(ignoring subsections 159J(1AA), (3AA) and (3AB)) if subsection 159J(1B) also included a reference to any dependant included in class 1 of that table and the amount applicable to class 1 of that table were $2,440”.

2 Subsection 79A(4) (paragraph (d) of the definition of relevant rebate amount )

3 Subsection 79B(6) (paragraph (d) of the definition of concessional rebate amount )

4 Subsection 159HA(7) (definition of indexable amount )

Repeal the definition, substitute:

indexable amount means:

(a) an amount specified in subsection 159J(1B) or (2) (other than the amounts specified in column 3 of the table in subsection 159J(2) in respect of a dependant included in class 3 or 4); or

(b) the amounts specified in subsection 159L(2); or

(i) sub-subparagraph 23AB(7)(a)(ii)(D); or

(ii) paragraph (d) of the definition of relevant rebate amount in subsection 79A(4); or

(iii) paragraph (d) of the definition of concessional rebate amount in subsection 79B(6);

or, if any such amount has been altered under this section in relation to the 2008-09 year of income or a later year of income, the altered amount.

5 Subsection 159HA(7) (definition of indexing year of income )

Repeal the definition, substitute:

indexing year of income means the year of income commencing on 1 July 2008 or a later year of income.

6 Subsection 159J(1B)

Omit “references in that table to $1,000 were references to $1,200”, substitute “the reference in that table to $1,711 were a reference to $2,051”.

7 Subsection 159J(2) (table)

Repeal the table, substitute:

Column 1 Class	Column 2 Dependant	Column 3 Amounts of Rebate
1	Spouse of the taxpayer	$2,100
2	Child-housekeeper	$1,711
3	Child less than 21 years of age (not being a student)	In respect of 1 such child - $376
		In respect of each other such child - $282
4	Student	$376
5	Invalid relative	$770
6	Parent of the taxpayer or of the taxpayer’s spouse	$1,540

8 Paragraphs 159K(1)(a) and (b)

Omit “$940” (wherever occurring), substitute “$1,607”.

9 Subsection 159K(2)

Omit “$940”, substitute “$1,607”.

10 Paragraph 159K(3)(b)

Omit “$940”, substitute “$1,607”.

11 Paragraph 159L(2)(a)

Omit “$1,200”, substitute “$2,051”.

12 Paragraph 159L(2)(b)

Omit “$1,000”, substitute “$1,711”.

13 Application of amendments

The amendments made by this Part apply to assessments for the 2007-2008 year of income and later years of income.

Part 2 Medicare levy and Medicare levy surcharge

A New Tax System (Medicare Levy Surcharge - Fringe Benefits) Act 1999

14 Paragraphs 15(1)(c) and 16(2)(c)

Omit “$16,284”, substitute “$16,740”.

Medicare Levy Act 1986

15 Subsection 3(1) (paragraph (b) of the definition of phase-in limit )

Omit “$21,170”, substitute “$25,455”.

16 Subsection 3(1) (paragraph (c) of the definition of phase-in limit )

Omit “$17,604”, substitute “$19,694”.

17 Subsection 3(1) (paragraph (b) of the definition of threshold amount )

Omit “$19,583”, substitute “$21,637”.

18 Subsection 3(1) (paragraph (c) of the definition of threshold amount )

Omit “$16,284”, substitute “$16,740”.

19 Subsection 8(5) (definition of family income threshold )

Omit “$27,478”, substitute “$28,247”.

20 Subsection 8(5) (definition of family income threshold )

Omit “$2,523”, substitute “$2,594”.

21 Subsections 8(6) and (7)

Omit “$27,478”, substitute “$28,247”.

22 Paragraph 8D(3)(c)

Omit “$16,284”, substitute “$16,740”.

23 Subparagraph 8D(4)(a)(ii)

Omit “$16,284”, substitute “$16,740”.

24 Paragraph 8G(2)(c)

Omit “$16,284”, substitute “$16,740”.

25 Subparagraph 8G(3)(a)(ii)

Omit “$16,284”, substitute “$16,740”.

26 Application of amendments

The amendments made by this Part apply to assessments for the 2006-2007 year of income and later years of income.