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CONTENTS
Medicare Levy Consequential Amendment (Trust Loss) Bill
1997
Date Introduced: 1 October 1997
House: House of Representatives
Portfolio: Treasury
Commencement: Royal Assent
To provide that certain amounts that would otherwise be excluded
from the calculation of income due to the operation of the family
trust loss rules are to be included for the calculation of the
amount of Medicare levy payable.
Section 3 of the Medicare Levy Act 1986 provides that
for purposes of the levy a reference to net income or taxable
income is to be taken as a reference to those matters in the
relevant year of income. Proposed section 271-105 of the Income
Tax Assessment Act 1936, which is contained in the Taxation
Laws Amendment (Trust Loss and Other Deductions) Bill 1997,
provides that assessable income is to be reduced by the amount for
which family trust tax has been paid. If this was applied to the
Medicare levy, the reduced assessable income would result in a
lower levy being paid. The Bill therefore provides for the
exemption to be ignored when calculating income for purposes of the
levy.
Item 1 of Schedule 1 of the Bill provides for
amounts of trust income that would otherwise be exempt due to the
operation of the family trust rules to be included for the purposes
of the Medicare levy.
Item 2 of Schedule 1 provides for the amendment
to apply for 1997-98 and all later years of income.
Chris Field
19 November 1997
Bills Digest Service
Information and Research Services
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ISSN 1328-8091
© Commonwealth of Australia 1997
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Published by the Department of the Parliamentary Library,
1997.
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Last updated: 21 November 1997
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