Commonwealth: Taxation Laws Amendment (Changes for Senior Australians) Act 2001 (Cth)

Taxation Laws Amendment (Changes for Senior Australians) Act 2001 No. 44, 2001 Taxation Laws Amendment (Changes for Senior Australians) Act 2001 No. 44, 2001 An Act to amend the law relating to taxation, and for related purposes Contents 1 Short title................................... 2 Commencement............................... 3 Schedule(s).................................. Schedule 1—Low income rebates Income Tax Assessment Act 1936 Schedule 2—Medicare levy thresholds Medicare Levy Act 1986 Schedule 3—Exemption of certain payments Income Tax Assessment Act 1997 Taxation Laws Amendment (Changes for Senior Australians) Act 2001 No. 44, 2001 An Act to amend the law relating to taxation, and for related purposes [Assented to 25 May 2001] The Parliament of Australia enacts: 1 Short title This Act may be cited as the Taxation Laws Amendment (Changes for Senior Australians) Act 2001. 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on which it receives the Royal Assent. 3 Schedule(s) Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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—Low income rebates Income Tax Assessment Act 1936 1 Subsection 160AAAA(2) Repeal the subsection, substitute: (2) The first condition is that, on at least one day during the year of income, either: (a) the taxpayer: (i) is in receipt of a pension, allowance or benefit under the Veterans' Entitlements Act 1986 (other than Part VII); and (i) has reached pension age, within the meaning of the Veterans' Entitlements Act 1986; or (b) the taxpayer: (i) has reached pension age, within the meaning of the Social Security Act 1991; and (ii) has 10 years qualifying Australian residence or has a qualifying residence exemption for an age pension, within the meaning of the Social Security Act 1991; and (iii) is not in gaol. 2 Subsection 160AAAA(3) Repeal the subsection, substitute: (3) The second condition is that the taxpayer has a taxable income for the year of income less than an amount ascertained in accordance with the regulations. 3 Subsection 160AAAA(4) Omit "paragraph (3)(a)", substitute "subsection (3)". 4 Subsection 160AAAB(2) Repeal the subsection, substitute: (2) The first condition is that, on at least one day during the year of income, either: (a) the beneficiary: (i) is in receipt of a pension, allowance or benefit under the Veterans' Entitlements Act 1986 (other than Part VII); and (i) has reached pension age, within the meaning of the Veterans' Entitlements Act 1986; or (b) the beneficiary: (i) has reached pension age, within the meaning of the Social Security Act 1991; and (ii) has 10 years qualifying Australian residence or has a qualifying residence exemption for an age pension, within the meaning of the Social Security Act 1991; and (iii) is not in gaol. 5 Subsection 160AAAB(3) Repeal the subsection, substitute: (3) The second condition is that the beneficiary has a taxable income for the year of income less than an amount ascertained in accordance with the regulations. 6 Subsection 160AAAB(4) Omit "paragraph (3)(a)", substitute "subsection (3)". 7 Subsection 160AAAB(5) Omit "paragraph (3)(a)", substitute "subsection (3)". 8 Subsection 160AAA(2) Omit "subsection (4)", substitute "subsections (4) and (4A)". 9 Subsection 160AAA(3) Omit "subsection (4)", substitute "subsections (4) and (4A)". 10 After subsection 160AAA(4) Insert: (4A) A taxpayer is not entitled to a rebate under this section for a year of income if: (a) the taxpayer is entitled to a rebate of tax for the year of income under section 160AAAA; or (b) the taxpayer is the beneficiary of a trust where the trustee of the trust is entitled to a rebate of tax for the year of income under section 160AAAB in respect of the taxpayer. 11 Application The amendments made by this Schedule apply to assessments for the 2000‑2001 year of income and later years of income. 12 Transitional—regulations (1) Regulations made under subsection 160AAAA(3) of the Income Tax Assessment Act 1936 that are in force immediately before the commencement of this item are taken, from that time, to have been made under that subsection as amended by this Act. (2) Regulations made under subsection 160AAAB(3) of the Income Tax Assessment Act 1936 that are in force immediately before the commencement of this item are taken, from that time, to have been made under that subsection as amended by this Act. Schedule 2—Medicare levy thresholds Medicare Levy Act 1986 1 Subsection 3(1) Insert: phase‑in limit means: (a) for a person who is entitled to a rebate under section 160AAAA of the Assessment Act—$21,621; or (b) for a person who is entitled to a rebate under section 160AAA of the Assessment Act—$17,264; or (c) in any other case—$14,926. 2 Subsection 3(1) Insert: threshold amount means: (a) for a person who is entitled to a rebate under section 160AAAA of the Assessment Act—$20,000; or (b) for a person who is entitled to a rebate under section 160AAA of the Assessment Act—$15,970; or (c) in any other case—$13,807. 3 Subsection 7(1) Omit "$13,807", substitute "the threshold amount". 4 Subsection 7(2) Omit "$13,807", substitute "the threshold amount". 5 Subsection 7(2) Omit "$14,926", substitute "the phase‑in limit". 6 At the end of section 8 Add: (7) Subsections (5) and (6) apply in relation to a person who is entitled for the year of income to a rebate under section 160AAAA of the Assessment Act as if each reference to $23,299 were a reference to $31,729. 7 At the end of section 10 Add: (2) For the purposes of working out the amount of levy that would be payable by the beneficiary, any rebate that the trustee is entitled to under section 160AAAB of the Assessment Act is taken to be a rebate that the beneficiary is entitled to under section 160AAAA of that Act. 8 Application The amendments made by this Schedule apply to assessments for the 2000‑2001 year of income and later years of income. Schedule 3—Exemption of certain payments Income Tax Assessment Act 1997 1 Before subsection 52‑10(2) Insert: (1C) Payments made by the Commonwealth and known as the one‑off payment to the aged are exempt from income tax. 2 Application The amendment made by this Schedule applies to assessments for the 2000‑2001 year of income and later years of income. [Minister's second reading speech made in— House of Representatives on 22 May 2001 Senate on 23 May 2001] (79/01)