Tax Laws Amendment (Personal Income Tax Reduction) Act 2007

(76 of 2007)

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

[21 June 2007]

The Parliament of Australia enacts:

1   Short title

This Act may be cited as the Tax Laws Amendment (Personal Income Tax Reduction) 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Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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   Amendments

Part 1   Amendments having effect from the 2007-08 year of income

Income Tax Assessment Act 1936

1   Subsection 159N(1)

Omit “$40,000”, substitute “$48,750”.

2   Subsection 159N(2)

Omit “$600”, substitute “$750”.

3   Subsection 159N(2)

Omit “$25,000”, substitute “$30,000”.

Income Tax Rates Act 1986

4   Clause 1 of Part I of Schedule 7 (table items 1 and 2)

Omit “$25,000”, substitute “$30,000”.

5   Clause 1 of Part II of Schedule 7 (table items 1 and 2)

Omit “$25,000”, substitute “$30,000”.

6   Subparagraph 2(b)(ii) of Division 2 of Part I of Schedule 8

Omit “$25,000” (wherever occurring), substitute “$30,000”.

7   Paragraph 2(b) of Part I of Schedule 10

Omit “$25,000” (wherever occurring), substitute “$30,000”.

Medicare Levy Act 1986

8   Subsection 3(1) (paragraph (a) of the definition of phase-in limit )

Omit “$29,255”, substitute “$30,431”.

9   Subsection 3(1) (paragraph (a) of the definition of threshold amount )

Omit “$24,867”, substitute “$25,867”.

10   Subsection 8(7)

Omit “$33,500”, substitute “$37,950”.

11   Application

The amendments made by this Part apply to assessments for the 2007-08 year of income and later years of income.

Part 2   Amendments having effect from the 2008-09 year of income

Income Tax Rates Act 1986

12   Clause 1 of Part I of Schedule 7 (table items 2 and 3)

Omit “$75,000”, substitute “$80,000”.

13   Clause 1 of Part I of Schedule 7 (table items 3 and 4)

Omit “$150,000”, substitute “$180,000”.

14   Clause 1 of Part II of Schedule 7 (table items 2 and 3)

Omit “$75,000”, substitute “$80,000”.

15   Clause 1 of Part II of Schedule 7 (table items 3 and 4)

Omit “$150,000”, substitute “$180,000”.

16   Application

The amendments made by this Part apply to assessments for the 2008-09 year of income and later years of income.