Bills Digest No. 111   1997-98 Medicare Levy Consequential Amendment (Trust Loss) Bill 1997


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This Digest was prepared for debate. It reflects the legislation as introduced and does not canvass subsequent amendments. This Digest does not have any official legal status. Other sources should be consulted to determine the subsequent official status of the Bill.

CONTENTS

Passage History

Medicare Levy Consequential Amendment (Trust Loss) Bill 1997

Date Introduced: 1 October 1997
House: House of Representatives
Portfolio: Treasury
Commencement: Royal Assent

Purpose

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.

Background

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.

Main Provisions

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.

Contact Officer and Copyright Details

Chris Field
19 November 1997
Bills Digest Service
Information and Research Services

This paper has been prepared for general distribution to Senators and Members of the Australian Parliament. While great care is taken to ensure that the paper is accurate and balanced, the paper is written using information publicly available at the time of production. The views expressed are those of the author and should not be attributed to the Information and Research Services (IRS). Advice on legislation or legal policy issues contained in this paper is provided for use in parliamentary debate and for related parliamentary purposes. This paper is not professional legal opinion. Readers are reminded that the paper is not an official parliamentary or Australian government document.

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ISSN 1328-8091
© Commonwealth of Australia 1997

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Published by the Department of the Parliamentary Library, 1997.

This page was prepared by the Parliamentary Library, Commonwealth of Australia
Last updated: 21 November 1997

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