Commonwealth Numbered Regulations - Explanatory Statements

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INCOME TAX REGULATIONS (AMENDMENT) 1996 NO. 124

STATUTORY RULES 1996 No. 124

Issued by authority of the Assistant Treasurer

Income Tax Assessment Act 1936

Income tax Regulations (Amendment)

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

The purpose of these regulations is to make an amendment to Part 7 of the Income Tax Regulations (the Regulations) to alter the calculation of the prescribed amount of deductions required to be made by employers under the Regulations. The amendments are necessary because the Higher Education Funding Amendment Act (No. 2) 1995 (the amendment Act) amended section 106Q of the Higher Education Funding Act 1988 (the HEFA Act) to alter the relevant amounts of earnings from 1 July 1996. Subsection 106Q(4) now specifies seven repayment thresholds where three were specified previously. Subsection 106Q(1) now specifies seven percentages applicable to these thresholds.

Details of Income Tax Regulations Amendment

Commencement

Subregrulation 1.1 provides that the amending Regulations commence on 1 July 1996.

Subregulation 2.1 provides that the Income Tax Regulations (the Regulations) are amended as set out in these amending regulations.

Subregulation 3.1 omits subparagraph 82B(3)(b)(i), which specified the three applicable percentage to be applied to the relevant amount of earnings, and substitutes new subparagraph 82B(3)(b)(i), which specifies the seven applicable percentages to be applied to the range of the relevant amounts of earnings as specified in new subregulation 82B(4).

Subregulation 3.2 omits existing subregulation 82B(4), and substitutes new subregulation 82B(4), which now specifies the seven formula for calculating the range of the relevant amounts of earnings to which the various percentage rate calculations apply, referring to the formula set out in subsection 106Q(4) of the HEFA Act as amended by the amendment Act. The resulting dollar amounts are contained in the "Note".