Income Tax Assessment Act 1997
View history note
Hide history notePt 2-20 inserted by No 56 of 1997.
Div 61 inserted by No 56 of 1997.
Subdiv 61-D heading substituted by No 92 of 2020 (as amended by No 72 of 2021), s 3 and Sch 1 item 25, effective 1 July 2022 and applicable in relation to assessments for the 2022-23 income year or a later income year. The heading formerly read:
Subdivision 61-D - Low and Middle Income tax offset and Low Income tax offset
Subdiv 61-D inserted by No 47 of 2018, s 3 and Sch 1 item 1, effective 1 July 2018.
61-107 (Repealed) SECTION 61-107 Amount of the Low and Middle Income tax offset
(Repealed by No 92 of 2020)
S 61-107 repealed by No 92 of 2020 (as amended by No 72 of 2021), s 3 and Sch 1 item 26, effective 1 July 2022 and applicable in relation to assessments for the 2022-23 income year or a later income year. S 61-107 formerly read:
SECTION 61-107 Amount of the Low and Middle Income tax offset
General rule
61-107(1)
The amount of your *tax offset is set out in the following table in respect of the following income (your
relevant income
):
(a)
if you are an individual
-
your taxable income for the income year;
(b)
if you are a trustee
-
the amount of the share of *net income referred to in subsection 61-105(2).
Amount of your tax offset
Item
If your relevant income:
The amount of your tax offset is:
1
does not exceed $37,000
$255
2
exceeds $37,000 but is not more than $48,000
$255, plus an amount equal to 7.5% of the excess
3
exceeds $48,000 but is not more than $90,000
$1,080
4
exceeds $90,000 but is not more than $126,000
$1,080, less an amount equal to 3% of the excess
Note:
This section will be repealed on 1 July 2022 by the Treasury Laws Amendment (A Tax Plan for the COVID-19 Economic Recovery) Act 2020 .
S 61-107(1) amended by No 14 of 2022, s 3 and Sch 6 item 2, by substituting the note, effective 1 April 2022. The note formerly read:
Note:
This section will be repealed on 1 July 2024 by the Treasury Laws Amendment (Personal Income Tax Plan) Act 2018 .
S 61-107(1) amended by No 52 of 2019, s 3 and Sch 1 item 2, by substituting the table, effective 6 July 2019 and applicable in relation to assessments for the 2018-19, 2019-20, 2020-21 or 2021-22 income year. The table formerly read:
Amount of your tax offset Item If your relevant income: The amount of your tax offset is: 1 does not exceed $37,000 $200 2 exceeds $37,000 but is not more than $48,000 $200, plus an amount equal to 3% of the excess 3 exceeds $48,000 but is not more than $90,000 $530 4 exceeds $90,000 but is not more than $125,333 $530, less an amount equal to 1.5% of the excess
61-107(1A)
The amount of your *tax offset is increased by $420 if:
(a) the income year is the 2021-22 income year; and
(b) your relevant income is not $126,000.
S 61-107(1A) inserted by No 14 of 2022, s 3 and Sch 6 item 3, effective 1 April 2022.
If you are less than 18 years of age
61-107(2)
Despite subsections (1) and (1A), the amount of your *tax offset for the income year cannot exceed a cap if:
(a) you are an individual who is a prescribed person in relation to the income year for the purposes of Division 6AA of Part III of the Income Tax Assessment Act 1936 ; and
(b) part (the excluded part ) of your basic income tax liability for the income year is attributable to your eligible taxable income (within the meaning of section 102AD of that Act).
The cap is an amount equal to the remaining part of your basic income tax liability for the income year.
Note:
Division 6AA (including section 102AD) is about income that particular kinds of children derive from particular sources.
S 61-107(2) amended by No 14 of 2022, s 3 and Sch 6 item 4, by substituting " Despite subsections (1) and (1A) " for " Despite subsection (1) " , effective 1 April 2022.
61-107(3)
When working out the remaining part of your basic income tax liability, if you are also entitled to a *tax offset under section 160AAA of the Income Tax Assessment Act 1936 , treat that tax offset as having been applied, to the extent possible, against the excluded part of your basic income tax liability.
Note:
That tax offset is for individuals eligible for certain benefits.
If you are a trustee and the beneficiary is less than 18 years of age
61-107(4)
Despite subsections (1) and (1A) , the amount of your *tax offset for the income year cannot exceed a cap if:
(a) you are a trustee; and
(b) the beneficiary who is presently entitled to the share of *net income to which the tax offset relates is a prescribed person in relation to the income year for the purposes of Division 6AA of Part III of the Income Tax Assessment Act 1936 ; and
(c) part of your basic income tax liability for the income year is attributable to the portion of that share to which that Division applies.
The cap is an amount equal to the part of your basic income tax liability attributable to the remaining portion of that share.
Note 1:
Division 6AA is about income that particular kinds of children derive from particular sources.
Note 2:
To work out the portion of that share to which Division 6AA applies, see section 102AG of the Income Tax Assessment Act 1936 .
S 61-107(4) amended by No 14 of 2022, s 3 and Sch 6 item 4, by substituting " Despite subsections (1) and (1A) " for " Despite subsection (1) " , effective 1 April 2022.
S 61-107 inserted by No 47 of 2018, s 3 and Sch 1 item 1, effective 1 July 2018.
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