The package of 15 Bills, including the Tax Laws Amendment (Temporary Budget Repair Levy) Bill 2014, was passed by the Senate on Tue 16.6.2014, without amendment and effectively awaits Royal Assent.
The package of Bills will amend the tax laws to introduce a 3-year progressive levy on high income earners. The Levy will apply at a rate of 2% on the part of their taxable income that is in excess of id=”mce_marker”80,000 per annum. The Levy will be active for the financial years 2014-15 to 2016-17, so will commence on 1 July 2014 and end on 30 June 2017.
[LTN 114, 17/6/14]
Budget repair levy Bills receive Assent
The package of 15 Budget deficit repair levy Bills received Royal Assent on Wed 25.6.2014:
- Tax Laws Amendment (Temporary Budget Repair Levy) Bill 2014 – Act No 48 of 2014
- Income Tax Rates Amendment (Temporary Budget Repair Levy) Bill 2014 – Act No 45 of 2014;
- Income Tax (Bearer Debentures) Amendment (Temporary Budget Repair Levy) Bill 2014 – Act No 43 of 2014;
- Income Tax (First Home Saver Accounts Misuse Tax) Amendment (Temporary Budget Repair Levy) Bill 2014 – Act No 44 of 2014;
- Income Tax (TFN Withholding Tax (ESS)) Amendment (Temporary Budget Repair Levy) Bill 2014 – Act No 46 of 2014;
- Tax Laws Amendment (Interest on Non-Resident Trust Distributions) (Temporary Budget Repair Levy) Bill 2014 – Act No 47 of 2014;
- Tax Laws Amendment (Untainting Tax) (Temporary Budget Repair Levy) Bill 2014 – Act No 49 of 2014; and
- Trust Recoupment Tax Amendment (Temporary Budget Repair Levy) Bill 2014 – Act No 50 of 2014;
- Family Trust Distribution Tax (Primary Liability) Amendment (Temporary Budget Repair Levy) Bill 2014 – Act No 41 of 2014;
- Fringe Benefits Tax Amendment (Temporary Budget Repair Levy) Bill 2014 – Act No 42 of 2014;
- Superannuation (Departing Australia Superannuation Payments Tax) Amendment (Temporary Budget Repair Levy) Bill 2014 – Act No 51 of 2014;
- Superannuation (Excess Non-Concessional Contributions Tax) Amendment (Temporary Budget Repair Levy) Bill 2014 – Act No 52 of 2014;
- Superannuation (Excess Untaxed Roll-Over Amounts Tax) Amendment (Temporary Budget Repair Levy) Bill 2014 – Act No 53 of 2014;
- Taxation (Trustee Beneficiary Non-disclosure Tax) (No 1) Amendment (Temporary Budget Repair Levy) Bill 2014 – Act No 54 of 2014;
- Taxation (Trustee Beneficiary Non-disclosure Tax) (No 2) Amendment (Temporary Budget Repair Levy) Bill 2014 – Act No 55 of 2014.
The Bills had passed all stages without amendment.
[LTN 120, 25/6/14]
Budget levy Bills – Senate committee recommends that they be passed (with Greens dissenting because they want it to be permanent)
The Senate Economics Legislation Committee tabled its report on Mon 16.6.2014, on the Tax Laws Amendment (Temporary Budget Repair Levy) Bill 2014 and 14 related Bills. The Committee majority recommended the Senate pass the Bills, although the Greens dissented. The Greens recommended that the Senate not pass the main Bill in its current form, and instead pass an amendment making the tax increase permanent with additional measures to minimise tax avoidance.
[LTN 113, 16/6/14]