This Act may be cited as the Taxation (Deficit Reduction) Act (No. 3) 1993.
2 Commencement
(1) This Act (other than Divisions 3 and 4 of Part 2) commences on the day on which it receives the Royal Assent.
(2) Division 3 of Part 2 commences on 1 July 1994.
Part 2—Amendment of the Income Tax Rates Act 1986 to give effect to personal tax cuts
Division 1—Preliminary
3 Object of Part
The object of this Part is to implement personal tax cuts.
4 Principal Act
In this Part, Principal Act means the Income Tax Rates Act 1986.
Division 2—Tax cuts for 1993‑94
5 Schedule 7
(1) The Principal Act is amended:
(a) by omitting the table in Part I of Schedule 7 and substituting the following table:
Column 1
Column 2
Parts of taxable income of resident taxpayer
% rate
The part of taxable income that:
exceeds $5,400 but does not exceed $20,700
20%
exceeds $20,700 but does not exceed $36,000
35.5%
exceeds $36,000 but does not exceed $38,000
38.5%
exceeds $38,000 but does not exceed $50,000
44.125%
exceeds $50,000
47%
;
(b) by omitting the table in Part II of Schedule 7 and substituting the following table:
Column 1
Column 2
Parts of taxable income of non‑resident taxpayer
% rate
The part of taxable income that:
does not exceed $20,700
29%
exceeds $20,700 but does not exceed $36,000
35.5%
exceeds $36,000 but does not exceed $38,000
38.5%
exceeds $38,000 but does not exceed $50,000
44.125%
exceeds $50,000
47%
.
(2) The amendments made by subsection (1) apply to assessments in respect of income of the 1993‑94 year of income.
Division 3—Tax cuts starting in 1994‑95
6 Schedule 7
(1) The Principal Act is amended:
(a) by omitting the table in Part I of Schedule 7 and substituting the following table:
Column 1
Column 2
Parts of taxable income of resident taxpayer
% rate
The part of taxable income that:
exceeds $5,400 but does not exceed $20,700
20%
exceeds $20,700 but does not exceed $38,000
34%
exceeds $38,000 but does not exceed $50,000
43%
exceeds $50,000
47%
;
(b) by omitting the table in Part II of Schedule 7 and substituting the following table:
Column 1
Column 2
Parts of taxable income of non‑resident taxpayer
% rate
The part of taxable income that:
does not exceed $20,700
29%
exceeds $20,700 but does not exceed $38,000
34%
exceeds $38,000 but does not exceed $50,000
43%
exceeds $50,000
47%
.
(2) The amendments made by subsection (1) apply to assessments in respect of income of the 1994‑95 year of income and of all later years of income.
(3) Subsection (2) has effect subject to Division 4.
Part 3—Repeal of the Tax Legislation Amendment Act 1992
8 Object of Part
The object of this Part is to repeal the Tax Legislation Amendment Act 1992. That Act, which provided for personal tax cuts, is superseded by the amendments made by this Act.
9 Repeal of the Tax Legislation Amendment Act 1992
The Tax Legislation Amendment Act 1992 is repealed.
Part 4—Amendment of the Income Tax Assessment Act 1936
Division 1—Principal Act
10 Principal Act
In this Part, Principal Act means the Income Tax Assessment Act 1936.
Division 2—Amendment to provide for a rebate for low‑income taxpayers
11 Object of Division
The object of this Division is to provide for a rebate of up to $150 for low‑income taxpayers.
12 Insertion of new section
After section 159M of the Principal Act the following section is inserted:
159N Rebate for certain low‑income taxpayers
(1) If a taxpayer’s taxable income of a year of income is less than $24,450, the taxpayer is entitled to a rebate of tax in the taxpayer’s assessment for the year of income.
(2) The amount of the rebate is $150, reduced by 4 cents for every $1 of the amount (if any) by which the taxpayer’s taxable income of the year of income exceeds $20,700.
13 Application of amendment
The amendment made by this Division applies to assessments in respect of income of the 1993‑94 year of income and of all later years of income.