Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT (SUPERANNUATION) ACT 1993 No. 7 of 1993 - SECT 39

39. Schedule 9 to the Principal Act is amended:

   (a)  by omitting clause 1 of Part I and substituting the following clause:

"1. Subject to clause 2, the rates of tax on the taxable income of a resident
taxpayer deriving a notional income as specified by section 59AB or 86 of the
Assessment Act are as follows:

   (a)  for the EC part of the taxable income-47%;

   (b)  for every $1 of the ordinary taxable income-the amount worked out
        using the formula:
Tax at ordinary rates on non-EC notional income
Number of dollars in the non-EC notional income where:
'Tax at ordinary rates on non-EC notional income' means the tax that would be
payable under clause 1 of Part I of Schedule 7 on an ordinary taxable income
equal to the non-EC notional income;
'Number of dollars in the non-EC notional income' means the number of whole
dollars in the non-EC notional income; In this clause, 'non-EC notional
income' means the amount that would have been the notional income as specified
by section 59AB or 86 of the Assessment Act if that notional income had been
calculated by reference to ordinary taxable income instead of by reference to
taxable income.";

   (b)  by adding at the end of clause 2 of Part I:

"In applying the formula, component B is to be worked out on the assumption
that the whole of the taxable income is ordinary taxable income.";

   (c)  by omitting clause 1 of Part II and substituting the following clause:

"1. Subject to clause 2, the rates of tax on the taxable income of a
non-resident taxpayer deriving a notional income as specified by section 59AB
or 86 of the Assessment Act are as follows:

   (a)  for the EC part of the taxable income-47%;

   (b)  for every $1 of the ordinary taxable income-the amount worked out
        using the formula:
Tax at ordinary rates on non-EC notional income
Number of dollars in the non-EC notional income where:
'Tax at ordinary rates on non-EC notional income' means the tax that would be
payable under clause 1 of Part II of Schedule 7 on an ordinary taxable income
equal to the non-EC notional income;
'Number of dollars in the non-EC notional income' means the number of whole
dollars in the non-EC notional income; In this clause, 'non-EC notional
income' means the amount that would have been the notional income as specified
by section 59AB or 86 of the Assessment Act if that notional income had been
calculated by reference to ordinary taxable income instead of by reference to
taxable income.";

   (d)  by adding at the end of clause 2 of Part II:

"In applying the formula, component B is to be worked out on the assumption
that the whole of the taxable income is ordinary taxable income.".