Document ID: chunk:federal_register_of_legislation:C2004A05083:schedule:1:p1
Version: federal_register_of_legislation:C2004A05083
Segment Type: schedule
Provision Reference: sch 1 (pt 1/18)
Character Range: 2146–4841

Schedule 1— Amendment of the Income Tax Rates Act 1986

1 After section 16

    Insert:

16A Division to apply before any tax-free threshold increase under Division 5

      If this Division applies in respect of a year of income to a taxpayer to whom section 20C or 20D applies, or would apart from section 20E apply, this Division is to be applied in relation to the taxpayer in respect of that year of income before Division 5 is applied.

2 At the end of Part II

    Add:

      Division 5—Family tax assistance: increased tax-free threshold for certain taxpayers with dependent children

20A Object of Division

      This Division provides for family tax assistance by way of an increased tax-free threshold for certain taxpayers with dependent children.

20B Definitions

      In this Division:

      dependant has the meaning given by section 20K.

      family income ceiling has the meaning given by section 20Q.

      lowest marginal rate of tax means the lowest percentage set out in column 2 of the table in clause 1 of Part 1 of Schedule 7.

      relevant part of the 1996-97 year of income means the part of that year of income occurring after the commencement of this Division.

      relevant period means:

        (a) the relevant part of the 1996-97 year of income; or

        (b) the year of income 1997-98; or

        (c) a later year of income.

      spouse, in relation to a taxpayer, does not include a person who lives separately and apart from the taxpayer on a permanent basis.

      taxable income, in relation to a beneficiary of a trust estate, includes (except in section 20J) any amount that would have been included in the beneficiary's assessable income under section 100 of the Assessment Act if paragraph 100(1)(b), and the words "or of each of the trust estates" in paragraphs 100(1)(c) and (d), of that Act were omitted.

      taxpayer's income ceiling has the meaning given by section 20R.

20C Increase in tax-free threshold

      (1) Subject to this Division, if:

        (a) a taxpayer who was a resident during the relevant part of the

          1996-97 year of income had, during that part of that year of income, at least one dependant; and

          (b) the taxpayers' taxable income of that year of income or, if the taxpayer had a spouse on the last day of that year of income, the sum of the taxable incomes of that year of income of the taxpayer and that spouse was less than the family income ceiling for the taxpayer for that year of income;

      the amount of $5,400 set out in column 1 of the table in clause 1 of Part 1 of Schedule 7 is taken, for the purposes of the application of that Schedule to the taxpayer in respect