Medicare Levy Act 1986

SECTION 8G LEVY SURCHARGE FOR CERTAIN TRUSTEES - BENEFICIARY A PERSON TO WHOM SECTION 8D APPLIES

8G(1)
This section applies to a person who is a beneficiary of a trust estate during a period if:

(a) section 8D applies to the beneficiary during the whole of the period; and

(b) the trustee of the trust estate in that capacity is liable to be assessed under section 98 of the Assessment Act in respect of a share of the net income of the trust estate to which the beneficiary is presently entitled (the beneficiary ' s trust income ).

8G(2)

View history reference

The amount of the levy that, apart from this section, would have been payable under this Act by the trustee in the capacity of trustee of the trust estate in relation to the beneficiary for the year of income is to be increased by 1% of the beneficiary ' s trust income if:

(a) this section applies to the beneficiary for the whole of the year of income; and

(b)

View history reference

the sum of the beneficiary ' s trust income and the beneficiary ' s spouse ' s income for surcharge purposes exceeds the beneficiary ' s family tier 1 threshold; and

(c)

View history reference

the amount of the beneficiary ' s trust income exceeds $26,000.

View history note

History

S 8G(2) amended by No 4 of 2024, s 3 and Sch 1 item 12, by substituting " $26,000 " for " $24,276 " in para (c), effective 6 March 2024 and applicable in relation to assessments for the 2023-24 year of income and later years of income.

S 8G(2) amended by No 28 of 2023, s 3 and Sch 1 item 12, by substituting " $24,276 " for " $23,365 " in para (c), effective 24 June 2023 and applicable to assessments for the 2022-23 year of income and later years of income.

S 8G(2) amended by No 14 of 2022, s 3 and Sch 1 item 12, by substituting " $23,365 " for $23,226 " in para (c), effective 1 April 2022 and applicable to assessments for the 2021-22 year of income and later years of income.

S 8G(2) amended by No 61 of 2021, s 3 and Sch 1 item 12, by substituting " $23,226 " for " $22,801 " in para (c), effective 30 June 2021 and applicable to assessments for the 2020-21 year of income and later years of income.

S 8G(2) amended by No 22 of 2020, s 3 and Sch 14 item 12, by substituting " $22,801 " for " $22,398 " in para (c), effective 25 March 2020 and applicable to assessments for the 2019-20 year of income and later years of income.

S 8G(2) amended by No 29 of 2019, s 3 and Sch 1 item 12, by substituting " $22,398 " for " $21,980 " in para (c), effective 6 April 2019 and applicable to assessments for the 2018-19 year of income and later years of income.

S 8G(2) amended by No 69 of 2018, s 3 and Sch 1 item 12, by substituting " $21,980 " for " $21,655 " in para (c), applicable to assessments for the 2017-18 year of income and later years of income.

S 8G(2) amended by No 58 of 2017, s 3 and Sch 1 item 12, by substituting " $21,655 " for " $21,335 " in para (c), applicable to assessments for the 2016-17 year of income and later years of income.

S 8G(2) amended by No 39 of 2016, s 3 and Sch 1 item 12, by substituting " $21,335 " for " $20,896 " in para (c), applicable to assessments for the 2015-16 year of income and later years of income.

S 8G(2) amended by No 69 of 2015, s 3 and Sch 1 item 11, by substituting " $20,896 " for " $20,542 " in para (c), applicable to assessments for the 2014-15 year of income and later years of income.

S 8G(2) amended by No 27 of 2012, s 3 and Sch 1 item 19, by substituting " family tier 1 threshold " for " family surcharge threshold " in para (b), applicable to the 2012-13 year of income and later years of income.

S 8G(2) amended by No 159 of 2011 (as amended by No 86 of 2012), s 3 and Sch 2 item 9, by substituting " $20,542 " for " $19,404 " in para (c), applicable to the 2012-13 year of income and later years of income.

S 8G(2) amended by No 86 of 2012, s 3 and Sch 1 item 11, by substituting " $19,404 " for " $18,839 " in para (c), applicable to assessments for the 2011-2012 year of income.

S 8G(2) amended by No 44 of 2011, s 3 and Sch 1 item 11, by substituting " $18,839 " for " $18,488 " in para (c), applicable to assessments for the 2010-11 year of income and later years of income.

S 8G(2) amended by No 78 of 2010 , s 3 and Sch 1 item 11, by substituting " $18,488 " for " $17,794 " in para (c), applicable to assessments for the 2009-10 year of income and later years of income.

S 8G(2) amended by No 41 of 2009, s 3 and Sch 1 item 11, by substituting " $17,794 " for " $17,309 " in para (c), applicable to assessments for the 2008-09 year of income and later years of income.

S 8G(2) amended by No 27 of 2009, s 3 and Sch 3 item 58, by substituting para (b), applicable in relation to income years starting on or after 1 July 2009. Para (b) formerly read:

(b) the sum of the following exceeds the family surcharge threshold:

(i) the beneficiary ' s trust income;

(ii) the beneficiary ' s spouse ' s taxable income;

(iii) the beneficiary ' s spouse ' s reportable fringe benefits total (if any); and

S 8G(2) amended by No 50 of 2008 , s 3 and Sch 1 item 11, by substituting " $17,309 " for " $16,740 " in para (c), applicable to assessments for the 2007-08 year of income and later years of income.

S 8G(2) amended by No 75 of 2007, s 3 and Sch 1 item 24, by substituting " $16,740 " for " $16,284 " in para (c), applicable to assessments for the 2006-2007 year of income and later years of income.

S 8G(2) amended by No 59 of 2006, s 3 and Sch 1 item 11, by substituting " $16,284 " for " $15,902 " in para (c), applicable to assessments for the 2005-2006 year of income and later years of income.

S 8G(2) amended by No 62 of 2005, No 84 of 2004, No 67 of 2003, No 39 of 2002, No 12 of 2001, No 54 of 2000, No 17 of 1999 and No 29 of 1998.

8G(3)

View history reference

If this section applies to the beneficiary for only some of the days in the year of income, the amount of the levy that, apart from this section, would have been payable under this Act by the trustee in the capacity of trustee of the trust estate in relation to the beneficiary for the year of income is to be increased by the amount worked out using the formula:

(1% of the beneficiary ' s
trust income)

Number of those days
Number of days in the
year of income

if:

(a)

View history reference

in the case of a beneficiary who is a married person for the whole of the year of income:

(i) the sum of the beneficiary ' s trust income and the beneficiary ' s spouse ' s income for surcharge purposes exceeds the beneficiary ' s family tier 1 threshold; and

(ii) the beneficiary ' s trust income exceeds $26,000; or

(b)

View history reference

in the case of a beneficiary who is a married person for only some of the year of income - the beneficiary ' s trust income exceeds the beneficiary ' s family tier 1 threshold.

View history note

History

S 8G(3) amended by No 4 of 2024, s 3 and Sch 1 item 13, by substituting " $26,000 " for " $24,276 " in para (a)(ii), effective 6 March 2024 and applicable in relation to assessments for the 2023-24 year of income and later years of income.

S 8G(3) amended by No 28 of 2023, s 3 and Sch 1 item 13, by substituting " $24,276 " for " $23,365 " in para (a)(ii), effective 24 June 2023 and applicable to assessments for the 2022-23 year of income and later years of income.

S 8G(3) amended by No 14 of 2022, s 3 and Sch 1 item 13, by substituting " $23,365 " for " $23,226 " in para (a)(ii), effective 1 April 2022 and applicable to assessments for the 2021-22 year of income and later years of income.

S 8G(3) amended by No 61 of 2021, s 3 and Sch 1 item 13, by substituting " $23,226 " for " $22,801 " in para (a)(ii), effective 30 June 2021 and applicable to assessments for the 2020-21 year of income and later years of income.

S 8G(3) amended by No 22 of 2020, s 3 and Sch 14 item 13, by substituting " $22,801 " for " $22,398 " in para (a)(ii), effective 25 March 2020 and applicable to assessments for the 2019-20 year of income and later years of income.

S 8G(3) amended by No 29 of 2019, s 3 and Sch 1 item 13, by substituting " $22,398 " for " $21,980 " in para (a)(ii), effective 6 April 2019 and applicable to assessments for the 2018-19 year of income and later years of income.

S 8G(3) amended by No 69 of 2018, s 3 and Sch 1 item 13, by substituting " $21,980 " for " $21,655 " in para (a)(ii), applicable to assessments for the 2017-18 year of income and later years of income.

S 8G(3) amended by No 58 of 2017, s 3 and Sch 1 item 13, by substituting " $21,655 " for " $21,335 " in para (a)(ii), applicable to assessments for the 2016-17 year of income and later years of income.

S 8G(3) amended by No 39 of 2016, s 3 and Sch 1 item 13, by substituting " $21,335 " for " $20,896 " in para (a)(ii), applicable to assessments for the 2015-16 year of income and later years of income.

S 8G(3) amended by No 69 of 2015, s 3 and Sch 1 item 12, by substituting " $20,896 " for " $20,542 " in para (a)(ii), applicable to assessments for the 2014-15 year of income and later years of income.

S 8G(3) amended by No 27 of 2012, s 3 and Sch 1 items 20 and 21, by substituting " family tier 1 threshold " for " family surcharge threshold " in para (a)(i) and (b), applicable to the 2012-13 year of income and later years of income.

S 8G(3) amended by No 159 of 2011 (as amended by No 86 of 2012), s 3 and Sch 2 item 10, by substituting " $20,542 " for " $19,404 " in para (a)(ii), applicable to the 2012-13 year of income and later years of income.

S 8G(3) amended by No 86 of 2012, s 3 and Sch 1 item 12, by substituting " $19,404 " for " $18,839 " in para (a)(ii), applicable to assessments for the 2011-2012 year of income.

S 8G(3) amended by No 44 of 2011, s 3 and Sch 1 item 12, by substituting " $18,839 " for " $18,488 " in para (a)(ii), applicable to assessments for the 2010-11 year of income and later years of income.

S 8G(3) amended by No 78 of 2010 , s 3 and Sch 1 item 12, by substituting " $18,488 " for " $17,794 " in para (a)(ii), applicable to assessments for the 2009-10 year of income and later years of income.

S 8G(3) amended by No 41 of 2009, s 3 and Sch 1 item 12, by substituting " $17,794 " for " $17,309 " in para (a)(ii), applicable to assessments for the 2008-09 year of income and later years of income.

S 8G(3) amended by No 27 of 2009, s 3 and Sch 3 items 59 and 60, by substituting para (a)(i) and substituting " beneficiary ' s family surcharge threshold " for " family surcharge threshold " in para (b), applicable in relation to income years starting on or after 1 July 2009. Para (a)(i) formerly read:

(i) the sum of the beneficiary ' s trust income, the beneficiary ' s spouse ' s taxable income and the beneficiary ' s spouse ' s reportable fringe benefits total (if any) is more than the family surcharge threshold; and

S 8G(3) amended by No 50 of 2008 , s 3 and Sch 1 item 12, by substituting " $17,309 " for " $16,740 " in para (a)(ii), applicable to assessments for the 2007-08 year of income and later years of income.

S 8G(3) amended by No 75 of 2007, s 3 and Sch 1 item 25, by substituting " $16,740 " for " $16,284 " in para (a)(ii), applicable to assessments for the 2006-2007 year of income and later years of income.

S 8G(3) amended by No 59 of 2006, s 3 and Sch 1 item 12, by substituting " $16,284 " for " $15,902 " in para (a)(ii), applicable to assessments for the 2005-2006 year of income and later years of income.

S 8G(3) amended by No 62 of 2005, No 84 of 2004, No 67 of 2003, No 39 of 2002, No 12 of 2001, No 54 of 2000, No 17 of 1999 and No 29 of 1998.

8G(3A)

View history reference

Increase the amount of each percentage mentioned in subsections (2) and (3) by 0.25 of a percentage point if the beneficiary is a tier 2 earner for the year of income.

View history note

8G(3B)

View history reference

Increase the amount of each percentage mentioned in subsections (2) and (3) by 0.5 of a percentage point if the beneficiary is a tier 3 earner for the year of income.

View history note

8G(4)

View history reference

In this section:

income for surcharge purposes
, in relation to the beneficiary ' s spouse, includes any share in the net income of a trust estate:

(a) to which the spouse is presently entitled as a beneficiary; and

(b) in respect of which the trustee of the trust estate in that capacity is liable to be assessed under section 98 of the Assessment Act.

View history note

[ CCH Note: Act No 45 of 2000, s 3 and Sch 4 item 30, provides for the amendment of s 8H(2), by inserting " at the Part B rate " after " family tax benefit " , effective 1 July 2000 and applicable to assessments in relation to 2000/01 and later years of income. This amendment could not be consolidated, as s 8H has not yet been inserted.]

Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.