INCOME TAX (FIRST HOME SAVER ACCOUNTS MISUSE TAX) ACT 2008 (REPEALED)

SECTION 1  

1   Short title  
This Act may be cited as the Income Tax (First Home Saver Accounts Misuse Tax) Act 2008.

SECTION 2  

2   Commencement  
This Act commences on the day after it receives the Royal Assent.

SECTION 3  

3   Definitions  
In this Act:

adjusted maximum tax rate
means the sum of:

(a) the maximum rate specified in column 2 of the table in Part I of Schedule 7 to the Income Tax Rates Act 1986; and

(b) 2%.

family law obligation
has the meaning given by the First Home Saver Accounts Act 2008.

FHSA
has the meaning given by the First Home Saver Accounts Act 2008.

FHSA eligibility requirements
has the meaning given by the First Home Saver Accounts Act 2008.

FHSA ineligibility payment
has the meaning given by the First Home Saver Accounts Act 2008.

FHSA payment conditions
has the meaning given by the First Home Saver Accounts Act 2008.

FHSA tax rate
means the rate specified in paragraphs 23(3)(aa) and 23(3A)(a) and section 30 of the Income Tax Rates Act 1986.

Government FHSA contribution
has the meaning given by the First Home Saver Accounts Act 2008.

hold:
an individual holds an FHSA in the circumstances mentioned in section 9 of the First Home Saver Accounts Act 2008.

non-recognised Government FHSA contribution
has the meaning given by section 7.

personal FHSA contribution
has the meaning given by the First Home Saver Accounts Act 2008.

SECTION 4  

4   Imposition of tax  
The tax known as income tax, to the extent that it is payable in accordance with section 345-100 of the Income Tax Assessment Act 1997, is imposed in respect ofa payment from an FHSA held by an individual.

SECTION 5   Amount of tax  

5(1)    
If the payment is an FHSA ineligibility payment (but satisfies the FHSA payment conditions) the amount of the tax is the sum of:

(a) the clawback tax amount for the FHSA (see section 6); and

(b) the sum of each non-recognised Government FHSA contribution (see section 7) of the individual that is payable for a financial year that began before the payment is made.

5(2)    
If the payment fails to satisfy the FHSA payment conditions, the amount of the tax is the sum of:

(a) the clawback tax amount for the FHSA (see section 6); and

(b) the sum of each Government FHSA contribution of the individual that is payable for a financial year that began before the payment mentioned in section 4 is made.

SECTION 6   Clawback tax amount  

6(1)    
The clawback tax amount for the FHSA is the amount worked out under subsection (2) multiplied by the percentage worked out under subsection (3).

6(2)    
Work out the amount using the following formula:

where:

earnings component of the FHSA
means the balance of the FHSA just before the time the payment is made, reduced (but not below zero) by:

(a) the amount of personal FHSA contributions made before that time to an FHSA held by the individual; and

(b) the amount (if any) paid by way of Government FHSA contributions before that time to an FHSA held by the individual; and

(c) the amount (if any) of contributions made before that time to an FHSA held by the individual because of a family law obligation.

payment fraction
means:

(a) if the payment is of the balance of the FHSA - 1; or

(b) otherwise - the amount of the payment divided by the balance of the FHSA just before the payment is made.

6(3)    
The percentage is the adjusted maximum tax rate reduced by the FHSA tax rate.

SECTION 7  

7   Non-recognised Government FHSA contributions  
A Government FHSA contribution that is payable for a financial year for an individual is a non-recognised Government FHSA contribution of the individual if the individual did not satisfy the FHSA eligibility requirements throughout the financial year.

SECTION 8   TEMPORARY BUDGET REPAIR LEVY  

8(1)    
This section applies to payments from an FHSA made in a temporary budget repair levy year.

8(2)    
Increase the amount of the adjusted maximum tax rate by 2 percentage points for the purpose of working out the clawback tax amount (see section 6) for the FHSA in relation to the payment.

8(3)    
In this section:

temporary budget repair levy year
has the same meaning as in section 4-11 of the Income Tax (Transitional Provisions) Act 1997.