Commonwealth Numbered Regulations - Explanatory Statements

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INCOME TAX AMENDMENT REGULATIONS 2000 (NO. 3) 2000 NO. 90

STATUTORY RULES 2000 No. 90

Issued by the Authority of the Assistant Treasurer

Income Tax Assessment Act 1936

Income Tax Amendment Regulations 2000 (No. 3)

The Governor-General may make regulations under section 266 of the Income Tax Assessment Act 1936 (the Act) for the purposes of that Act.

The purpose of the Regulations is to align the calculation of the beneficiary rebate, which is allowed under section 160AAA of the Act, with the personal income tax rates applying to the 2000-2001 year of income and later years of income.

Subsection 160AAA(3) of the Act allows a rebate of tax in relation to certain payments. The payments to which the rebate applies are listed in the definition of "rebatable benefit" in subsection 160AAA(1) of the Act. The rebate is calculated in accordance with the Regulations.

The rates and thresholds used in the calculation of the beneficiary rebate are aligned with the personal income tax rates. The personal income tax rates have been reduced with effect from 1 July 2000 as part of the Government's tax reform. The amendments to reduce personal income tax rates were contained in A New Tax System (Personal Income Tax Cuts) Act 1999.

Item 1 in Schedule 1 of the Regulations amends subregulation 152(1) to ensure that the new personal income tax rates and thresholds are used in the calculation of the beneficiary rebate for the 2000-2001 year of income and later years of income.

The Regulations commenced on gazettal.