Income Tax Amendment Regulations 2006 (No. 3) (167 of 2006)

Schedule 1   Amendment

[3]   Subregulation 150AB (3)

substitute

(3) If subregulation (3A) does not apply, a taxpayer’s rebate threshold for a year of income is the amount calculated using the formula:

D + ((E+F)/C)

where:

D is the tax-free threshold.

E is the maximum amount of rebate allowable under section 159N of the Act.

F is the taxpayer’s rebate amount for the year of income, worked out in accordance with subregulations (2) and (2B).

C is the lowest marginal tax rate.

Note For lowest marginal tax rate and tax-free threshold - see regulation 148.

(3A) If:

(a) a taxpayer is a single person; and

(b) the taxpayer’s rebate threshold, if it were calculated using the formula in subregulation (3), would be an amount that is greater than the threshold at the upper conclusion of the lowest marginal tax rate;

the taxpayer’s rebate threshold for a year of income is the amount calculated using the formula:

(((A*B)-C(A-D)+E+0.04*A+F)/0.34)

where:

A is the threshold at the upper conclusion of the lowest marginal tax rate.

B is the rate that would be the lowest marginal tax rate, if not for the rate mentioned in factor C .

C is the lowest marginal tax rate.

D is the tax-free threshold.

E is the maximum amount of rebate allowable under section 159N of the Act.

F is the taxpayer’s rebate amount for the year of income, worked out in accordance with subregulations (2) and (2B).

Note For lowest marginal tax rate and tax-free threshold - see regulation 148.