Commonwealth Numbered Acts Commonwealth Numbered ActsIncome Tax Assessment Act 1936
1 Subparagraphs 23AB(7)(a)(ii) and (iii)
Repeal the subparagraphs, substitute:
(ii) the amount worked out using subsection (7A); or
2 Subsection 23AB(7) (notes 1 and 2)
Repeal the notes.
3 Subsection 23AB(7A)
Repeal the subsection, substitute:
(7A) For the purposes of subparagraph (7)(a)(ii), the amount is equal to 50% of the sum of the following rebates (if any) in respect of the year of income:
(a) any tax offset to which the taxpayer is entitled under Subdivision 61-A of the Income Tax Assessment Act 1997 ;
(b) any notional tax offset to which the taxpayer is entitled under Subdivision 961-A of the Income Tax Assessment Act 1997 .
4 Paragraphs 79A(2)(a), (d) and (e)
Repeal the paragraphs, substitute:
(a) if the taxpayer is a resident of the special area in Zone A, or of the special area in Zone B, in the year of income--an amount equal to the sum of:
(i) $1,173; and
(ii) an amount equal to 50% of the relevant rebate amount in relation to the taxpayer in relation to the year of income; or
(b) if the taxpayer is a resident of Zone A in the year of income but has not resided or actually been in the special area in Zone A or the special area in Zone B during any part of the year of income--an amount equal to the sum of:
(i) $338; and
(ii) an amount equal to 50% of the relevant rebate amount in relation to the taxpayer in relation to the year of income; or
(c) if the taxpayer is a resident of Zone B in the year of income but has not resided or actually been in Zone A or the special area in Zone B during any part of the year of income--an amount equal to the sum of:
(i) $57; and
(ii) an amount equal to 20% of the relevant rebate amount in relation to the taxpayer in relation to the year of income; or
5 Paragraph 79A(2)(f)
Omit "paragraph (e)", substitute "paragraph (c)".
6 Subsection 79A(4) (definition of dependent spouse relevant rebate amount )
Repeal the definition.
7 Subsection 79A(4) (definition of relevant rebate amount )
Repeal the definition (including the notes), substitute:
"relevant rebate amount " , in relation to a taxpayer in relation to a year of income, means the sum of the following rebates (if any):
(a) any tax offset to which the taxpayer is entitled under Subdivision 61-A of the Income Tax Assessment Act 1997 ;
(b) any notional tax offset to which the taxpayer is entitled under Subdivision 961-A of the Income Tax Assessment Act 1997 ;
(c) any notional tax offset to which the taxpayer is entitled under Subdivision 961-B of the Income Tax Assessment Act 1997 .
8 Subparagraph 79B(2)(a)(ii)
Omit "amount; and", substitute "amount; or".
9 Subparagraph 79B(2)(a)(iii)
Repeal the subparagraph.
10 Paragraph 79B(4)(b)
Omit "amount; and", substitute "amount."
11 Paragraph 79B(4)(c)
Repeal the paragraph.
12 Subparagraph 79B(4A)(b)(ii)
Omit "amount; and", substitute "amount;".
13 Subparagraph 79B(4A)(b)(iii)
Repeal the subparagraph.
14 Subsection 79B(6) (definition of concessional rebate amount )
Repeal the definition (including the notes), substitute:
"concessional rebate amount " , in relation to a taxpayer in relation to a year of income, means the sum of the following rebates (if any):
(a) any tax offset to which the taxpayer is entitled under Subdivision 61-A of the Income Tax Assessment Act 1997 ;
(b) any notional tax offset to which the taxpayer is entitled under Subdivision 961-A of the Income Tax Assessment Act 1997 ;
(c) any notional tax offset to which the taxpayer is entitled under Subdivision 961-B of the Income Tax Assessment Act 1997 .
15 Subsection 79B(6) (definition of dependent spouse concessional rebate amount )
Repeal the definition.
16 Sections 159J, 159JA, 159K, 159L, 159LA and 159M
Repeal the sections.
Income Tax Assessment Act 1997
17 After Division 960
Insert:
Division 961 -- Notional tax offsets
Table of Subdivisions
961-A Dependant (non-student child under 21 or student) notional tax offset
961-B Dependant (sole parent of a non-student child under 21 or student) notional tax offset
Subdivision 961-A -- Dependant (non-student child under 21 or student) notional tax offset
961-1 What this Subdivision is about
This Subdivision provides for a notional tax offset for an income year if you contribute to the maintenance of a non-student child or a student dependant. The notional tax offset can only be taken into account in working out certain tax offsets under the Income Tax Assessment Act 1936 .
Table of sections
Entitlement to the notional tax offset
961-5 Who is entitled to the notional tax offset
Amount of the notional tax offset
961-10 Amount of the dependant (non-student child under 21 or student) notional tax offset
961-15 Reduced amounts of the dependant (non-student child under 21 or student) notional tax offset
961-20 Reductions to take account of the dependant's income
Entitlement to the notional tax offset
961-5 Who is entitled to the notional tax offset
(1) You are entitled to a notional tax offset for an income year if:
(a) you are an individual; and
(b) you are an Australian resident; and
(c) during the year you contribute to the maintenance of another individual (the dependant ) who:
(i) is less than 25 years of age, and is a full-time student at a school, college or university; or
(ii) if subparagraph (i) does not apply--is less than 21 years of age; and
(d) during the year:
(i) the dependant is an Australian resident; or
(ii) you had a domicile in Australia.
(2) You may be entitled to more than one notional tax offset for the year under subsection (1) if you contributed to the maintenance of more than one dependant during the year.
Note: The amount of the notional tax offset in relation to each subsequent dependant may only be part of the full amount: see subsection 961-15(1).
(3) The notional tax offset only affects your income tax liability as provided for by sections 23AB, 79A and 79B of the Income Tax Assessment Act 1936 .
Note: Section 23AB of that Act provides a tax offset for service with an armed force under the control of the United Nations; section 79A provides a tax offset for residents of isolated areas; section 79B provides a tax offset for members of the Defence Force who are serving overseas.
Amount of the notional tax offset
961-10 Amount of the dependant (non-student child under 21 or student) notional tax offset
(1) The amount of the notional tax offset to which you are entitled in relation to a dependant under section 961-5 for an income year is $376.
(2) However, if you are entitled to 2 or more such notional tax offsets for the income year in relation to individuals covered by subparagraph 961-5(1)(c)(ii), the amount of the notional tax offset under section 961-5 is:
(a) in relation to the oldest of those individuals--$376; and
(b) in relation to each of the others--$282.
961-15 Reduced amounts of the dependant (non-student child under 21 or student) notional tax offset
(1) The amount of the notional tax offset under section 961-10 is reduced by the amount in accordance with subsection (2) of this section if one or more of the following applies:
(a) paragraph 961-5(1)(c) applies during part only of the year;
(b) paragraph 961-5(1)(d) applies during part only of the year;
(c) during the whole or part of the year, 2 or more individuals contribute to the maintenance of the dependant;
(d) the dependant only meets the description of the individual covered by subparagraph 961-5(1)(c)(i) or (ii) for part of the year.
(2) The amount of a notional tax offset is reduced to an amount that, in the Commissioner's opinion, is a reasonable apportionment in the circumstances, having regard to the applicable matters referred to in paragraphs (1)(a) to (d).
961-20 Reductions to take account of the dependant's income
The amount of the notional tax offset under sections 961-10 and 961-15 in relation to the dependant for the year is reduced by $1 for every $4 by which the following exceeds $282:
(a) if you contribute to the maintenance of the dependant for the whole of the year--the dependant's * adjusted taxable income for offsets for the year;
(b) if paragraph (a) does not apply--the dependant's adjusted taxable income for offsets for that part of the year during which you contribute to the dependant's maintenance.
961-50 What this Subdivision is about
This Subdivision provides for a notional tax offset for an income year if you are the sole contributor to the maintenance of a non-student child or a student dependant. The notional tax offset can only be taken into account in working out certain tax offsets under the Income Tax Assessment Act 1936 .
Table of sections
Operative provisions
961-55 Who is entitled to the notional tax offset
961-60 Amount of the dependant (sole parent of a non-student child under 21 or student) notional tax offset
961-65 Reductions to take account of change in circumstances
961-55 Who is entitled to the notional tax offset
(1) You are entitled to a notional tax offset for an income year if:
(a) during the year you have the sole care of another individual (the dependant ) who:
(i) is less than 25 years of age, and is a full-time student at a school, college or university; or
(ii) if subparagraph (i) does not apply--is less than 21 years of age; and
(b) you are entitled to a notional tax offset under Subdivision 961-A for the dependant; and
(c) during the year you did not have a * spouse.
(2) Paragraph (1)(c) does not apply if, in the opinion of the Commissioner, because of special circumstances, the paragraph should not apply.
(3) The notional tax offset only affects your income tax liability as provided for by sections 79A and 79B of the Income Tax Assessment Act 1936 .
Note: Section 79A of that Act provides a tax offset for residents of isolated areas; section 79B provides a tax offset for members of the Defence Force who are serving overseas.
The amount of the notional tax offset to which you are entitled under section 961-55 for an income year is $1,607.
Note: The amount of the offset under this section applies regardless of whether you have one or more dependants that satisfy section 961-55.
961-65 Reductions to take account of change in circumstances
(1) The amount of the notional tax offset under section 961-60 is reduced in accordance with subsection (2) if:
(a) paragraph 961-55(1)(a) applies during only part of the year; or
(b) paragraph 961-55(1)(c) does not apply because of subsection 961-55(2).
(2) The amount of the notional tax offset is reduced to an amount that, in the Commissioner's opinion, is a reasonable apportionment in the circumstances, having regard to the matters referred to in paragraphs (1)(a) and (b).
Part 2 -- Consequential amendments
Income Tax Assessment Act 1936
18 Subsection 159HA(1)
Omit "Sections 159J, 159L and 159Q apply", substitute "Section 159Q applies".
19 Subsection 159HA(6A)
Repeal the subsection.
20 Subsection 159HA(7) (table items 1, 2 and 3)
Repeal the items.
21 Subsection 159P(4) (paragraphs (c), (ca) and (d) of the definition of dependant )
22 Subsection 159P(4) (at the end of the definition of dependant )
Add:
; or (g) a person in respect of whom the taxpayer is entitled to a notional tax offset under Subdivision 961-A of the Income Tax Assessment Act 1997 .
23 Subsection 251R(4)
Omit "would be entitled to a rebate in respect of that child under section 159J in the person's assessment in respect of income of that year of income but for subsections 159J(1A) and (1F)", substitute "is entitled to a notional tax offset in respect of that child under Subdivision 961-A of the Income Tax Assessment Act 1997 ".
Income Tax Assessment Act 1997
24 Section 13-1 (table item headed "child/housekeeper")
25 Section 13-1 (table item headed "dependants")
|
child of person keeping house for the person.................. |
159J |
|
housekeeper, caring for child, invalid relative or disabled spouse............................................................... |
159L |
|
invalid relative, invalid spouse or carer in receipt of carer benefit.................................................................... |
159J , Subdivision 61-A |
|
parents/parents in law.......................................................... |
159J |
|
spouse..................................................................................... |
159J |
substitute:
|
invalid relative, invalid spouse or carer in receipt of carer benefit.................................................................... |
Subdivision 61-A |
26 Section 13-1 (table items headed "housekeeper", "parent/parent-in-law" and "spouse")
27 Subparagraph 61-10(1)(c)(ii)
Omit "Australia; and", substitute "Australia.".
28 Paragraphs 61-10(1)(d) and (e)
Repeal the paragraphs.
29 Subsection 61-10(1) (note)
Repeal the note.
30 Paragraphs 8(1)(b), (c) and (d)
Repeal the paragraphs, substitute:
(b) is entitled to a tax offset under Subdivision 61-A of the Income Tax Assessment Act 1997 for the year of income in respect of the person's child (within the meaning of that Act); or
(c) is entitled to a notional tax offset under Subdivision 961-B of the Income Tax Assessment Act 1997 for the year of income;
31 Paragraphs 8(2)(b), (c) and (d)
Repeal the paragraphs, substitute:
(b) is entitled to a tax offset under Subdivision 61-A of the Income Tax Assessment Act 1997 for the year of income in respect of the person's child (within the meaning of that Act); or
(c) is entitled to a notional tax offset under Subdivision 961-B of the Income Tax Assessment Act 1997 for the year of income;
32 Subsection 8(5) (definition of family income threshold )
Repeal the definition, substitute:
"family income threshold , in relation to a person (the relevant person" ), means $35,261 increased by $3,238 for each person covered by paragraph 961-5(1)(c) of the Income Tax Assessment Act 1997 in respect of whom:
(a) in a case to which paragraph (b) does not apply--the relevant person; or
(b) if the relevant person was a married person on the last day of the year of income--the relevant person or the spouse of the relevant person;
is entitled to a notional tax offset under Subdivision 961-A of the Income Tax Assessment Act 1997 for the year of income.
Tax and Superannuation Laws Amendment (2014 Measures No. 1) Act 2014
33 Items 4 and 5 of Schedule 3
Repeal the items, substitute:
4 Section 159HA
Repeal the section.
Part 3 -- Technical amendments
Income Tax Assessment Act 1997
34 Subsection 61-15(3)
Repeal the subsection.
35 At the end of section 61-25
Add:
Note: Clause 31 of Schedule 1 to the A New Tax System (Family Assistance) Act 1999 reduces the standard rate for the family tax benefit to take account of shared care percentages.
36 Paragraph 61-40(1)(f)
Before "during", insert "the other individual is your spouse, and,".
37 Subsection 61-40(2)
Omit "is reasonable", substitute "is a reasonable apportionment".
Part 4 -- Application of amendments
38 Application of amendments--Parts 1 and 2
The amendments made by Parts 1 and 2 of this Schedule apply in relation to assessments for the 2014-15 income year and later income years.
39 Application of amendments--Part 3
The amendments made by Part 3 of this Schedule apply in relation to assessments for the 2012-13 income year and later income years.