The Tax Laws Amendment (2012 Measures No 3) Bill 2012 was introduced into the House of Reps on Thur 24.5.2012. It contains the following amendments:
- Employment termination payment (ETP) tax offset – amends the ITAA 1997 so that access to the ETP tax offset and the amount of offset received takes into account an individual’s taxable ETP as well as any other taxable income in the year they receive the ETP. From 1 July 2012, any taxable component of an ETP that takes a person’s total taxable income in a year above $180,000 will be taxed at marginal rates. The amendment implements the 2012 Budget announcement to limit the availability of the ETP tax offset. DATE OF EFFECT: 1 July 2012.
- Minors and low income tax offset (LITO) – amends the ITAA 1936 to ensure that where a trustee is assessed on the income of a minor, the trustee will not have access to the LITO in circumstances where the income is considered to be unearned income of that minor. The amendment implements the 2011 Budget announcement to remove the ability of minors to access the LITO to reduce tax payable on their “unearned income”, such as dividends, interest, rent, royalties and other income from property. DATE OF EFFECT: applies to assessments for the 2011-12 income year and later income years.
- Clean energy payments – amends the ITAA 1997 to provide an income tax exemption for clean energy payments made to recipients of payments under the ABSTUDY scheme, Veterans’ Children Education Scheme, and Military Rehabilitation and Compensation Act Education and Training Scheme, the transitional farm family payment and exceptional circumstances relief payment. DATE OF EFFECT: applies to assessments for the 2011-12 income year and later income years.
- Seasonal Labour Mobility Program – creates a new final withholding tax regime that applies to income derived by non-resident workers participating in the Seasonal Labour Mobility Program. The formal imposition of income tax, and the establishment of the applicable rate of tax, is provided for by means of the Income Tax (Seasonal LabourMobility Program Withholding Tax) Bill 2012, which was also introduced into the House of Reps on Thur 24.5.2012 also. DATE OF EFFECT: proposed to apply from 1 July 2012.
- Taxation of blends of gaseous and aviation fuels – amends the Excise Act 1901 so that blends of the same types of gaseous fuels or the same types of aviation fuels, where each amount of the gaseous fuel or each amount of the aviation fuel has been taxed at a different rate as a result of time-related excise phase-in arrangements or time-related carbon price changes, are not treated as excise manufacture and therefore subject to additional duty. DATE OF EFFECT: proposed to apply from 1 July 2012.
[LTN 99, 24/5]
The above Bill passed the House of Reps on Thur 31.5.2012, without amendment and now moves to the Senate.
[LTN 104, 31/5]