Taxation (Budget Measures) Act 2012

1: Title
This Act is the Taxation (Budget Measures) Act 2012.
2: Commencement
1: This Act comes into force on the day on which it receives the Royal assent, except as provided in this section.
2: Section 5
3: Sections 8 10 11
1: Amendments to Income Tax Act 2007
3: Income Tax Act 2007
This Part amends the Income Tax Act 2007 2012-05-29 Income Tax Act 2007 Sections 4, 5, 6, 7 (Section 5 comes into force on 18 August 2011) come into force on the day on which the Act receives the Royal assent 2013-04-01 Income Tax Act 2007 Section 8 comes into force on 1 April 2013
4: New section CW 55BB inserted (Minors' income, to limited extent)
1: After section CW 55BA
CW 55BB: Minors' income, to limited extent
When this section applies
1: This section applies for a tax year to a person, other than an absentee, when the person is—
a: younger than 15:
b: younger than 18, and attends—
i: a private primary school, state primary school, private secondary school, or state secondary school, in each case as defined in the Education Act 1964:
ii: an integrated school as defined in section 2 of the Private Schools Conditional Integration Act 1975:
iii: a school providing special education as defined in the Education Act 1964 and the Education Act 1989:
c: younger than 19, and—
i: was a person to whom paragraph (b) applied during the previous tax year; and
ii: turned 18 on or after 1 January in that previous tax year; and
iii: continues to attend a school of a kind referred to in paragraph (b). Exempt income—if less than limit
2: An amount of income derived by the person in the tax year is exempt income if—
a: the income is none of—
i: a PAYE income payment:
ii: resident passive income:
iii: non-resident passive income:
iv: excluded income:
v: exempt income under another provision; and
b: the person derives in the tax year a total amount of income meeting the requirements of paragraph (a) that is less than $2,340. absentee, excluded income, exempt income, income, non-resident passive income, PAYE income payment, resident passive income, tax year .
2: Subsection (1) applies for the 2012–13 and later tax years.
5: Section EC 8 amended (Restrictions on use of herd scheme)
1: In section EC 8 on arising from
2: After section EC 8(2) No election after 18 August 2011 to change from use of herd scheme
3: A valuation method other than the herd scheme is not available to a person, in an income year after the 2011–12 income year, for a type of specified livestock if the person—
a: gives a notice of election, with application beginning for or before the income year, to use the herd scheme for the type of specified livestock; and
b: does not give before 18 August 2011 a later notice of election, with application beginning for or before the income year, to use another valuation method for the type of specified livestock.
6: Sections and headings in subpart LC repealed (Tax credits for natural persons)
1: Repeal—
a: the heading before section LC 3
b: section LC 3
c: the heading before section LC 4
d: sections LC 4 LC 5
e: the heading before section LC 6
f: sections LC 6 to LC 8
g: the heading before section LC 9
h: section LC 9
i: the heading before section LC 10
j: sections LC 10 to LC 12
2: Subsection (1) applies for the 2012–13 and later tax years, except as given by subsection (3).
3: For the purposes of schedule 2 sections 24B 24H(7)
7: Section YA 1 amended (Definitions)
1: This section amends section YA 1
2: In the definition of civil union partner sections LC 4 and LC 13 (which relate to tax credits for natural persons) section LC 13 (Tax credits for independent earners)
3: Repeal the definition of compensation
4: Repeal the definition of engaged in full-time work
5: Repeal the definition of home
6: Repeal the definition of household member
7: Repeal the definition of housekeeper
8: Repeal the definition of housekeeping payments
9: Repeal the definition of institution
10: In the definition of non-refundable tax credit , excluding section LC 6 (Tax credits for housekeeping)
11: Repeal the definition of paid work
12: Repeal the definition of personal injury by accident
13: In the definition of separated person section LC 7 (Meaning of housekeeper),
14: In the definition of spouse section LC 4 (Tax credits for transitional circumstances) and
15: Subsections (2) to (14) apply for the 2012–13 and later tax years except as given by subsection (16).
16: For the purposes of sections LC 4 LC 5 schedule 2 sections 24B 24H(7)
8: Schedule 2—Basic tax rates for PAYE income payments
1: In schedule 2
a: in the heading, replace M ME ML M ME
b: in paragraph (b), replace M ME ML M ME
2: In schedule 2
a: in the heading, replace M ME ML M ME
b: in the words before the formula, replace M ME ML M ME
2: Amendments to Tax Administration Act 1994
9: Tax Administration Act 1994
This Part amends the Tax Administration Act 1994 2012-05-29 Tax Administration Act 1994 Section 12 comes into force on the day on which the Act receives the Royal assent 2013-04-01 Tax Administration Act 1994 Sections 10 and 11 come into force on 1 April 2013
10: Section 24B amended (PAYE tax codes)
1: In section 24B(3)(a) LC 4 or
2: Repeal section 24B(3)(b)
3: Subsections (1) and (2) apply for the 2013–14 and later tax years.
11: Section 24H amended (When entitlement to use tax code ends)
1: Repeal section 24H(7)
2: Subsection (1) applies for the 2012–13 and later tax years.
12: Section 41A amended (Returns by persons with tax credits for housekeeping payments and charitable or other public benefit gifts)
1: In the heading to section 41A housekeeping payments and
2: In section 41A(1) section LC 6 or
3: In section 41A(3)
a: delete housekeeping payments under section LC 6 of that Act and
b: replace payment or gift, or both, gift
4: In section 41A(4)
a: delete , in equal portions,
b: delete housekeeping payments and
c: replace payment or gift, or both, gift
5: Repeal section 41A(5)(a)
6: In section 41A(10) section LC 6 or
7: Subsections (1) to (6) apply for the 2012–13 and later tax years.