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

Schedule 1   Amendment

[6]   Regulation 152

substitute

152 Rebate of tax in respect of rebatable benefits

(1) If the assessable income of a taxpayer of a year of income commencing on or after 1 July 2003 includes an amount of rebatable benefit, the taxpayer is entitled in the taxpayer’s assessment in respect of income of that year of income to a rebate of tax of the amount calculated using the formula in subregulation (2) or (3).

(2) If the taxpayer’s benefit amount is less than or equal to the threshold at the upper conclusion of the lowest marginal tax rate, the formula is:

A*(B-C)

where:

A is the lowest marginal tax rate.

B is the taxpayer’s benefit amount, being the amount of rebatable benefit received by the taxpayer during the year of income, rounded down to the nearest whole dollar.

C is the tax-free threshold.

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

(3) If the taxpayer’s benefit amount is greater than the threshold at the upper conclusion of the lowest marginal tax rate, the formula is:

A*(B-C)+D*(B-E)

where:

A is the lowest marginal tax rate.

B is the taxpayer’s benefit amount, being the amount of rebatable benefit received by the taxpayer during the year of income, rounded down to the nearest whole dollar.

C is the tax-free threshold.

D is the rate that is calculated by subtracting the lowest marginal tax rate from the rate that is the second lowest marginal tax rate (expressed as a decimal fraction).

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

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

(4) If the amount worked out under subregulation (2) or (3) is not an amount of whole dollars, the amount must be rounded up to the nearest whole dollar.