Tax Laws Amendment (Personal Income Tax Reduction) Act 2008
(29 of 2008)
An Act to amend the law relating to taxation, and for related purposes
[Assented to 23 June 2008]
The Parliament of Australia enacts:
1 Short title
This Act may be cited as the Tax Laws Amendment (Personal Income Tax Reduction) Act 2008.
2 Commencement
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
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Commencement information |
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|---|---|---|
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Column 1 |
Column 2 |
Column 3 |
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Provision(s) |
Commencement |
Date/Details |
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1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table |
The day on which this Act receives the Royal Assent. |
23 June 2008 |
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2. Schedule 1, Part 1 |
1 July 2008. |
1 July 2008 |
|
3. Schedule 1, Part 2 |
1 July 2009. |
1 July 2009 |
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4. Schedule 1, Part 3 |
1 July 2010. |
1 July 2010 |
Note: This table relates only to the provisions of this Act as originally passed by both Houses of the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent.
(2) Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or edited in any published version of this Act.
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Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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 2008-09 year of income
Income Tax Assessment Act 1936
1 Subsection 159N(1)
Omit “$48,750”, substitute “$60,000”.
2 Subsection 159N(2)
Omit “$750”, substitute “$1,200”.
Income Tax Rates Act 1986
3 Clause 1 of Part I of Schedule 7 (table)
Repeal the table, substitute:
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Tax rates for resident taxpayers |
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|---|---|---|
|
Item |
For the part of the ordinary taxable income of the taxpayer that: |
The rate is: |
|
1 |
exceeds $6,000 but does not exceed $34,000 |
15% |
|
2 |
exceeds $34,000 but does not exceed $80,000 |
30% |
|
3 |
exceeds $80,000 but does not exceed $180,000 |
40% |
4 |
exceeds $180,000 |
45% |
4 Clause 1 of Part II of Schedule 7 (table)
Repeal the table, substitute:
|
Tax rates for non-resident taxpayers |
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|---|---|---|
|
Item |
For the part of the ordinary taxable income of the taxpayer that: |
The rate is: |
|
1 |
does not exceed $34,000 |
29% |
|
2 |
exceeds $34,000 but does not exceed $80,000 |
30% |
|
3 |
exceeds $80,000 but does not exceed $180,000 |
40% |
|
4 |
exceeds $180,000 |
45% |
5 Subparagraph 2(b)(ii) of Division 2 of Part I of Schedule 8
Omit “$30,000” (wherever occurring), substitute “$34,000”.
6 Paragraph 2(b) of Part I of Schedule 10
Omit “$30,000” (wherever occurring), substitute “$34,000”.
Medicare Levy Act 1986
7 Subsection 3(1) (paragraph (a) of the definition of phase-in limit )
Omit “$30,431”, substitute “$33,961”.
8 Subsection 3(1) (paragraph (a) of the definition of threshold amount )
Omit “$25,867”, substitute “$28,867”.
9 Subsection 8(7)
Omit “$37,950”, substitute “$42,000”.
10 Application
The amendments made by this Part apply to assessments for the 2008-09 year of income.
Part 2 Amendments having effect from the 2009-10 year of income
Income Tax Assessment Act 1936
11 Subsection 159N(1)
Omit “$60,000”, substitute “$63,750”.
12 Subsection 159N(2)
Omit “$1,200”, substitute “$1,350”.
Income Tax Rates Act 1986
13 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 $35,000 |
15% |
|
2 |
exceeds $35,000 but does not exceed $80,000 |
30% |
|
3 |
exceeds $80,000 but does not exceed $180,000 |
38% |
|
4 |
exceeds $180,000 |
45% |
14 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 $35,000 |
29% |
|
2 |
exceeds $35,000 but does not exceed $80,000 |
30% |
|
3 |
exceeds $80,000 but does not exceed $180,000 |
38% |
|
4 |
exceeds $180,000 |
45% |
15 Subparagraph 2(b)(ii) of Division 2 of Part I of Schedule 8
Omit “$34,000” (wherever occurring), substitute “$35,000”.
16 Paragraph 2(b) of Part I of Schedule 10
Omit “$34,000” (wherever occurring), substitute “$35,000”.
Medicare Levy Act 1986
17 Subsection 3(1) (paragraph (a) of the definition of phase-in limit )
Omit “$33,961”, substitute “$35,137”.
18 Subsection 3(1) (paragraph (a) of the definition of threshold amount )
Omit “$28,867”, substitute “$29,867”.
19 Subsection 8(7)
Omit “$42,000”, substitute “$43,500”.
20 Application
The amendments made by this Part apply to assessments for the 2009-10 year of income.
Part 3 Amendments having effect from the 2010-11 year of income
Income Tax Assessment Act 1936
21 Subsection 159N(1)
Omit “$63,750”, substitute “$67,500”.
22 Subsection 159N(2)
Omit “$1,350”, substitute “$1,500”.
Income Tax Rates Act 1986
23 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 $37,000 |
15% |
|
2 |
exceeds $37,000 but does not exceed $80,000 |
30% |
|
3 |
exceeds $80,000 but does not exceed $180,000 |
37% |
|
4 |
exceeds $180,000 |
45% |
24 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 $37,000 |
29% |
|
2 |
exceeds $37,000 but does not exceed $80,000 |
30% |
|
3 |
exceeds $80,000 but does not exceed $180,000 |
37% |
|
4 |
exceeds $180,000 |
45% |
25 Subparagraph 2(b)(ii) of Division 2 of Part I of Schedule 8
Omit “$35,000” (wherever occurring), substitute “$37,000”.
26 Paragraph 2(b) of Part I of Schedule 10
Omit “$35,000” (wherever occurring), substitute “$37,000”.
Medicare Levy Act 1986
27 Subsection 3(1) (paragraph (a) of the definition of phase-in limit )
Omit “$35,137”, substitute “$36,100”.
28 Subsection 3(1) (paragraph (a) of the definition of threshold amount )
Omit “$29,867”, substitute “$30,685”.
29 Subsection 8(7)
Omit “$43,500”, substitute “$44,500”.
30 Application
The amendments made by this Part apply to assessments for the 2010-11 year of income and later years of income.