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

PART 3 - AMOUNT OF SURCHARGE PAYABLE

Division 4 - Amount of surcharge for married person

SECTION 16 AMOUNT OF SURCHARGE IF THIS DIVISION APPLIES FOR PART OF THE YEAR
When this section applies

16(1)
The amount of surcharge payable on a person ' s reportable fringe benefits total for a year of income includes the amount worked out using the formula in subsection (4) if:

(a) this Division applies to the person for only part of the year of income; and

(b) either subsection (2) or (3) applies to the person.

Person married for whole year of income

16(2)
This subsection applies to the person if:

(a) the person is married for the whole of the year of income; and

(b)

View history reference

the sum of the person ' s income for surcharge purposes, and the person ' s spouse ' s income for surcharge purposes, for the year of income exceeds the person ' s family tier 1 threshold for the year of income; and

(c)

View history reference

the person ' s income for surcharge purposes for the year of income exceeds $26,000.

View history note

History

S 16(2) amended by No 4 of 2024, s 3 and Sch 1 item 1, 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 16(2) amended by No 28 of 2023, s 3 and Sch 1 item 1, 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 16(2) amended by No 14 of 2022, s 3 and Sch 1 item 1, 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 16(2) amended by No 61 of 2021, s 3 and Sch 1 item 1, 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 16(2) amended by No 22 of 2020, s 3 and Sch 14 item 1, 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 16(2) amended by No 29 of 2019, s 3 and Sch 1 item 1, 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 16(2) amended by No 69 of 2018, s 3 and Sch 1 item 1, 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 16(2) amended by No 58 of 2017, s 3 and Sch 1 item 1, 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 16(2) amended by No 39 of 2016, s 3 and Sch 1 item 1, 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 16(2) amended by No 69 of 2015, s 3 and Sch 1 item 1, 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 16(2) amended by No 88 of 2013, s 3 and Sch 7 item 194, by inserting " $ " before " 20,542 " in para (c), effective 1 July 2012.

S 16(2) amended by No 28 of 2012, s 3 and Sch 1 item 14, 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 16(2) amended by No 159 of 2011 (as amended by No 86 of 2012), s 3 and Sch 2 item 1, by substituting " $20,542 " for " $19,404 " in para (c), applicable to the 2012-13 year of income and later years of income.

S 16(2) amended by No 86 of 2012, s 3 and Sch 1 item 1, by substituting " $19,404 " for " $18,839 " in para (c), applicable to the 2011-12 year of income.

S 16(2) amended by No 44 of 2011, s 3 and Sch 1 item 1, 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 16(2) amended by No 78 of 2010 , s 3 and Sch 1 item 1, 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 16(2) amended by No 41 of 2009, s 3 and Sch 1 item 1, 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 16(2) amended by No 27 of 2009, s 3 and Sch 3 item 30, by substituting paras (b) and (c), applicable in relation to income years starting on or after 1 July 2009. Paras (b) and (c) formerly read:

(b) the sum of the following is more than the family surcharge threshold for the person for the year of income:

(i) the person ' s taxable income for the year of income;

(ii) the person ' s reportable fringe benefits total for the year of income;

(iii) the person ' s spouse ' s taxable income for the year of income;

(iv) the person ' s spouse ' s reportable fringe benefits total (if any) for the year of income; and

(c) the sum of the person ' s taxable income and reportable fringe benefits total for the year of income is more than $17,309.

S 16(2) amended by No 50 of 2008, s 3 and Sch 1 item 1, 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 16(2) amended by No 75 of 2007, s 3 and Sch 1 item 14, 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 16(2) amended by No 59 of 2006, s 3 and Sch 1 item 1, 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 16(2) amended by No 62 of 2005, No 84 of 2004, No 67 of 2003, No 39 of 2002, No 12 of 2001 and No 54 of 2000.

Person married for part of the year of income

16(3)
This subsection applies to the person if:

(a) the person is married for only part of the year of income; and

(b)

View history reference

the person ' s income for surcharge purposes for the year of income exceeds the person ' s family tier 1 threshold for the year of income.

View history note

Amount of surcharge

16(4)
The amount of surcharge payable on the person ' s reportable fringe benefits total for the year of income includes the amount worked out using the formula:

(1% of the person ' s reportable
fringe benefits total for the
year of income)

Number of applicable days
Number of days in the
year of income

where:

number of applicable days
is the number of days in the year of income for which this Division applies to the person.

16(4A)

View history reference

Increase the amount of the percentage mentioned in subsection (4) by 0.25 of a percentage point if the person is a tier 2 earner for the year of income.

View history note

16(4B)

View history reference

Increase the amount of the percentage mentioned in subsection (4) by 0.5 of a percentage point if the person is a tier 3 earner for the year of income.

View history note

Special rule if person ' s spouse is a presently entitled beneficiary in a trust estate

16(5)

View history reference

In working out whether subsection (2) applies to a person whose spouse is a beneficiary presently entitled to a share in the net income of a trust estate in respect of which the trustee is liable to be assessed under section 98 of the Assessment Act, assume that:

(a)

View history reference

the spouse ' s income for surcharge purposes included that share; and

(b) subsection 271-105(1) in Schedule 2F to that Act did not apply in working out the net income of the trust estate.

View history note

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.