Document ID: chunk:federal_register_of_legislation:C2024C00072:section:16:p1
Version: federal_register_of_legislation:C2024C00072
Segment Type: section
Provision Reference: s 16 (pt 1/7)
Character Range: 17989–20603

16  Amount of surcharge if this Division applies for part of the year

When this section applies
 (1) The amount of surcharge payable on a person's reportable fringe benefits total for a year of income includes the amount worked out using the formula in subsection (4) if:
 (a) this Division applies to the person for only part of the year of income; and
 (b) either subsection (2) or (3) applies to the person.

Person married for whole year of income
 (2) This subsection applies to the person if:
 (a) the person is married for the whole of the year of income; and
 (b) the sum of the person's income for surcharge purposes, and the person's spouse's income for surcharge purposes, for the year of income exceeds the person's family tier 1 threshold for the year of income; and
 (c) the person's income for surcharge purposes for the year of income exceeds $26,000.

Person married for part of the year of income
 (3) This subsection applies to the person if:
 (a) the person is married for only part of the year of income; and
 (b) the person's income for surcharge purposes for the year of income exceeds the person's family tier 1 threshold for the year of income.

Amount of surcharge
 (4) The amount of surcharge payable on the person's reportable fringe benefits total for the year of income includes the amount worked out using the formula:

where:
number of applicable days is the number of days in the year of income for which this Division applies to the person.
 (4A) Increase the amount of the percentage mentioned in subsection (4) by 0.25 of a percentage point if the person is a tier 2 earner for the year of income.
 (4B) Increase the amount of the percentage mentioned in subsection (4) by 0.5 of a percentage point if the person is a tier 3 earner for the year of income.

Special rule if person's spouse is a presently entitled beneficiary in a trust estate
 (5) In working out whether subsection (2) applies to a person whose spouse is a beneficiary presently entitled to a share in the net income of a trust estate in respect of which the trustee is liable to be assessed under section 98 of the Assessment Act, assume that:
 (a) the spouse's income for surcharge purposes included that share; and
 (b) subsection 271‑105(1) in Schedule 2F to that Act did not apply in working out the net income of the trust estate.

Endnotes

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