Income Tax Amendment Regulation 2012 (No. 1)1
Select Legislative Instrument 2012 No. 91
I, QUENTIN BRYCE, Governor-General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following regulation under the Income Tax Assessment Act 1936.
Dated 24 May 2012
QUENTIN BRYCE
Governor-General
By Her Excellency’s Command
WAYNE SWAN
Treasurer
1              Name of regulation
                This regulation is the Income Tax Amendment Regulation 2012 (No. 1).
2              Commencement
                This regulation commences on the commencement of Schedule 3 to the Clean Energy (Tax Laws Amendments) Act 2011.
3              Amendment of Income Tax Regulations 1936
                Schedule 1 amends the Income Tax Regulations 1936.
Schedule 1        Amendments
(section 3)
 
[1]           Part 8, heading
substitute
Part 8                 Rebate for low income aged persons and pensioners and rebate in respect of certain benefits
  
[2]           Regulation 148, definitions of illness-separated-rate social security pension, member of a couple, partner and partnered-rate social security pension
omit
[3]           Regulation 148, definition of rebatable benefit and rebatable pension
substitute
rebatable benefit has the same meaning as in subsection 160AAA (1) of the Act.
[4]           Regulation 148, definitions of single-rate social security pension, SSA91, tax-free threshold and VEA
substitute
tax-free threshold, in relation to a year of income, has the meaning given by subsection 3 (1) of the Income Tax Rates Act 1986.
[5]           Subregulation 149 (2)
omit
Divisions 2 and 3
insert
Division 3
[6]           Regulation 150AA, definition of relevant income-recipient
substitute
relevant income-recipient means the beneficiary of a trust, if the trustee in relation to the trust:
                (a)    is the taxpayer; and
               (b)    is liable to be assessed under section 98 of the Act in respect of the beneficiary’s share of the net income of the trust estate.
[7]           Subregulation 150AB (3A)
substitute
      (3A)   If the taxpayer’s rebate threshold, if it were calculated using the formula in subregulation (3), would be an amount that is greater than the amount at which the rebate of tax under section 159N of the Act is reduced, the taxpayer’s rebate threshold for a year of income is the amount calculated using the formula:
where:
C is the lowest marginal tax rate.
D is the tax‑free threshold.
E is the maximum amount of rebate allowable under section 159N of the Act.
F is the taxpayer’s rebate amount for the year of income, worked out in accordance with subregulations (2) and (2B).
G is the amount at which the rebate of tax under section 159N of the Act is reduced.
H is the rate at which the rebate of tax under subsection 159N (2) of the Act is reduced, expressed as a decimal fraction.
I is the second lowest marginal tax rate, expressed as a decimal fraction.
Note   For lowest marginal tax rate and tax‑free threshold—see regulation 148.
[8]           Subregulation 150AB (5)
substitute
         (5)   In this regulation:
illness separated couple has the same meaning as in subsection 4 (7) of the Social Security Act 1991.
member of a couple has the same meaning as in:
                (a)    the Social Security Act 1991; or
               (b)    the Veteran’s Entitlements Act 1986.
single person means a person who, at any time in the year of income, is not the spouse of another person.
[9]           Regulation 150AD, heading
substitute
150AD    Rebate for low income aged persons and pensioners
[10]         Paragraph 150AD (a)
omit
[11]         Paragraphs 150AE (1) (a) to (b)
substitute
                (a)    a taxpayer (TP1) is entitled to a rebate of tax under section 160AAAA of the Act; and
              (aa)    a person (TP2) who is, at any time in that year of income, TP1’s spouse, is entitled to a rebate of tax under section 160AAAA of the Act; and
               (b)    TP1’s rebate amount for the year of income, worked out under this regulation, exceeds the tax payable by TP1 in respect of income of that year (disregarding any credits or rebates); and
[12]         Subregulation 150AE (2)
substitute
         (2)   In the circumstances mentioned in subregulation (1):
                (a)    TP1’s rebate amount for the year of income is  the amount ascertained under subregulation 150AB (2) reduced by the amount of the excess rebate amount mentioned in paragraph (1) (b); and
               (b)    TP2’s rebate amount for the year of income is the amount ascertained under subregulation 150AB (2) increased by the amount of excess rebate ascertained under subregulation (11).
[13]         Paragraph 150AE (3) (a)
substitute
                (a)    a taxpayer (TP1) is, under section 160AAAA of the Act, entitled to a rebate of tax; and
[14]         Paragraph 150AE (3) (c)
substitute
                (c)    TP1’s rebate amount for the year of income worked out under this regulation exceeds the tax payable by TP1 in respect of income of that year (disregarding any credits or rebates); and
[15]         Paragraph 150AE (4) (b)
omit
mentioned in paragraph (3) (c)
insert
ascertained under subregulation (11)
[16]         Subregulations 150AE (5), (6) and (10)
omit
[17]         After subregulation 150AE (10)
insert
       (11)   In the circumstances mentioned in paragraphs (2) (b) and (4) (b), if TP1’s taxable income for the year is $6 000 or less, the amount of excess rebate is the excess rebate amount mentioned in paragraph (1) (b).
       (12)   In the circumstances mentioned in paragraphs (2) (b) and (4) (b), if TP1’s taxable income for the year is greater than $6 000:
                (a)    the amount of excess rebate is calculated using the formula:
                        where:
                        A is TP1’s rebate amount for the year of income, worked out under this regulation.
                        B is TP1’s taxable income for the year; but
               (b)    if the amount calculated in paragraph (a) is less than zero, the amount of excess rebate is zero.
[18]         Paragraph 150AF (2) (b)
omit
mentioned in paragraph (1) (c)
insert
ascertained under subregulation (8) or (9).
[19]         Paragraph 150AF (4) (b)
omit
mentioned in paragraph (3) (c)
insert
ascertained under subregulation (8) or (9).
[20]         Subregulations 150AF (5) and (6)
omit
[21]         After subregulation 150AF (7)
insert
         (8)   In the circumstances mentioned in paragraphs (2) (b) and (4) (b), if TP1’s taxable income in relation to the relevant income-recipient for the year is $6 000 or less, the amount of excess rebate is the excess rebate amount mentioned in paragraph (1) (b).
         (9)   In the circumstances mentioned in paragraphs (2) (b) and (4) (b), if TP1’s taxable income in relation to the relevant income-recipient for the year is greater than $6 000:
                (a)    the amount of excess rebate is calculated using the formula:
                        where:
                        A is TP1’s rebate amount for the year of income, worked out under this regulation.
                        B is TP1’s taxable income for the year; but
               (b)    if the amount calculated in paragraph (a) is less than zero, the amount of excess rebate is zero.
[22]         Part 8, Division 2
omit
[23]         Part 8, Division 3, heading
substitute
Division 3              Rebate under section 160AAA of the Act
[24]         Subregulations 152 (2) and (3)
substitute
         (2)   If the taxpayer’s benefit amount is less than or equal to the threshold at the upper conclusion of the lowest marginal tax rate, the formula is:
where:
A is the taxpayer’s benefit amount, being the amount of rebatable benefit received by the taxpayer during the year of income, rounded down to the nearest whole dollar.
Note   For lowest marginal tax rate and tax‑free threshold—see regulation 148.
         (3)   If the taxpayer’s benefit amount is greater than the threshold at the upper conclusion of the lowest marginal tax rate, the formula is:
where:
A is the taxpayer’s benefit amount, being the amount of rebatable benefit received by the taxpayer during the year of income, rounded down to the nearest whole dollar.
B is the threshold at the upper conclusion of the lowest marginal tax rate.
Note   For lowest marginal tax rate and tax‑free threshold—see regulation 148.
Note
1.       All legislative instruments and compilations are registered on the Federal Register of Legislative Instruments kept under the Legislative Instruments Act 2003. See www.comlaw.gov.au.