MEDICARE LEVY ACT 1986

SECTION 8G   LEVY SURCHARGE FOR CERTAIN TRUSTEES - BENEFICIARY A PERSON TO WHOM SECTION 8D APPLIES  

8G(1)  
This section applies to a person who is a beneficiary of a trust estate during a period if:


(a) section 8D applies to the beneficiary during the whole of the period; and


(b) the trustee of the trust estate in that capacity is liable to be assessed under section 98 of the Assessment Act in respect of a share of the net income of the trust estate to which the beneficiary is presently entitled (the beneficiary ' s trust income ).

8G(2)  


The amount of the levy that, apart from this section, would have been payable under this Act by the trustee in the capacity of trustee of the trust estate in relation to the beneficiary for the year of income is to be increased by 1% of the beneficiary ' s trust income if:


(a) this section applies to the beneficiary for the whole of the year of income; and


(b) the sum of the beneficiary ' s trust income and the beneficiary ' s spouse ' s income for surcharge purposes exceeds the beneficiary ' s family tier 1 threshold; and


(c) the amount of the beneficiary ' s trust income exceeds $22,398.

8G(3)  


If this section applies to the beneficiary for only some of the days in the year of income, the amount of the levy that, apart from this section, would have been payable under this Act by the trustee in the capacity of trustee of the trust estate in relation to the beneficiary for the year of income is to be increased by the amount worked out using the formula:


(1% of the beneficiary ' s
trust income)
× Number of those days
Number of days in the
year of income

if:


(a) in the case of a beneficiary who is a married person for the whole of the year of income:


(i) the sum of the beneficiary ' s trust income and the beneficiary ' s spouse ' s income for surcharge purposes exceeds the beneficiary ' s family tier 1 threshold; and

(ii) the beneficiary ' s trust income exceeds $22,398; or


(b) in the case of a beneficiary who is a married person for only some of the year of income - the beneficiary ' s trust income exceeds the beneficiary ' s family tier 1 threshold.

8G(3A)  


Increase the amount of each percentage mentioned in subsections (2) and (3) by 0.25 of a percentage point if the beneficiary is a tier 2 earner for the year of income.

8G(3B)  


Increase the amount of each percentage mentioned in subsections (2) and (3) by 0.5 of a percentage point if the beneficiary is a tier 3 earner for the year of income.

8G(4)  


In this section:

income for surcharge purposes
, in relation to the beneficiary ' s spouse, includes any share in the net income of a trust estate:


(a) to which the spouse is presently entitled as a beneficiary; and


(b) in respect of which the trustee of the trust estate in that capacity is liable to be assessed under section 98 of the Assessment Act.




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