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Act Repealed Latest version as at 30 June 1997 (as enacted) | 1997 No 25

Income Tax Act 1994 Amendment Act 1997

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Act Repealed Latest version as at 30 June 1997 (as enacted) | 1997 No 25

Income Tax Act 1994 Amendment Act 1997

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1 Short Title

This Act may be cited as the Income Tax Act 1994 Amendment Act 1997, and is part of the Income Tax Act 1994.

2 Family credit of tax

(1)

In section KD 2(2), the definition of item “a” is replaced by:

“a

is an amount equal to the sum of—

“(a)

For the eldest dependent child of whom the person is a principal caregiver during the period, one of the following:

“(i)

$2,411.50, if the child is under the age of 13 years;

“(ii)

$2,411.50, if the child is 13, 14, or 15 years of age;

“(iii)

$2,580.50, if the child is 16 or more years of age;

“(iv)

A weighted average of the amounts in subparagraphs (ii) and (iii) that reflects the proportion of the period that those subparagraphs apply to the child, if the child attains 16 years of age during the period; and

“(b)

For each dependent child of whom the person is a principal caregiver during the period, other than the eldest dependent child, one of the following:

“(i)

$1,631.50, if the child is under the age of 13 years;

“(ii)

$2,047.50, if the child is 13, 14, or 15 years of age;

“(iii)

$2,307.50, if the child is 16 or more years of age;

“(iv)

A weighted average of the amounts in subparagraphs (i) and (ii) that reflects the proportion of the period that those subparagraphs apply to the child, if the child attains 13 years of age during the period;

“(v)

A weighted average of the amounts in subparagraphs (ii) and (iii) that reflects the proportion of the period that those subparagraphs apply to the child, if the child attains 16 years of age during the period; and”.

(2)

Subsection (1) applies to the 1997–98 income year and is deemed to have come into force on 1 April 1997.

(3)

Section 36(1) of the Income Tax Act 1994 Amendment Act 1996 is deemed to have been repealed on 1 April 1997.

(4)

In section KD 2(2) (as amended by subsection (1)), the definition of item “a” is replaced by:

“a

is an amount equal to the sum of—

“(a)

For the eldest dependent child of whom the person is a principal caregiver during the period, one of the following:

“(i)

$2,444, if the child is under the age of 13 years;

“(ii)

$2,444, if the child is 13, 14, or 15 years of age;

“(iii)

$3,120, if the child is 16 or more years of age;

“(iv)

A weighted average of the amounts in subparagraphs (ii) and (iii) that reflects the proportion of the period that those subparagraphs apply to the child, if the child attains the age of 16 years during the period; and

“(b)

For each dependent child of whom the person is a principal caregiver during the period, other than the eldest dependent child, one of the following:

“(i)

$1,664, if the child is under the age of 13 years;

“(ii)

$2,080, if the child is 13, 14, or 15 years of age;

“(iii)

$3,120, if the child is 16 or more years of age;

“(iv)

A weighted average of the amounts in subparagraphs (i) and (ii) that reflects the proportion of the period that those subparagraphs apply to the child, if the child attains the age of 13 years during the period;

“(v)

A weighted average of the amounts in subparagraphs (ii) and (iii) that reflects the proportion of the period that those subparagraphs apply to the child, if the child attains the age of 16 years during the period; and”.

(5)

Subsection (4) applies to the 1998–99 income year and subsequent income years and comes into force on 1 April 1998.

(6)

Section 50(1) of the Income Tax Act 1994 Amendment Act 1996 is repealed on 1 April 1998.

3 Credit of tax by instalments

In section KD 5(6a), paragraph (ab) is replaced by:

“(ab)

Section KD 5AB, for a calculation period beginning on or after 1 July 1997 and ending on or before 31 December 1997; or

“(ac)

Section KD 5AC, for a calculation period beginning on or after 1 January 1998 and ending on or before 30 June 1998; or”.

4 Transitional rates for interim instalments during period 1 July 1997 to 31 December 1997

In section KD 5AB(1), the expression “30 June 1998” is replaced by the expression “31 December 1997”.

5 Transitional rates for interim instalments during period 1 January 1998 to 30 June 1998

(1)

After section KD 5AB, the following is inserted:

“KD 5AC

“(1)

For the purposes of section KD 5(6), the amount of the estimated entitlement of a person to a credit of tax, for a period beginning on or after 1 January 1998 and ending on or before 30 June 1998, is calculated using the following formula:

“a + b

“where—

“a

is the estimated entitlement of the person to a family credit for the period, calculated under subsection (2); and

“b

is the estimated entitlement of the person to a guaranteed minimum family income for the period, calculated under subsection (6).

“(2)

For the purposes of this section, the estimated entitlement of a person to a family credit for a period is calculated using the following formula:

“x + y - z

“where—

“x

is the amount of the family support credit under subsection (3); and

“y

is the amount of the independent family tax credit under subsection (4); and

“z

is the amount of the family credit abatement under subsection (5).

“(3)

The amount of the family support credit under this subsection is calculated using the following formula:

“where—

“a

is an amount equal to the sum of—

“(a)

For the eldest dependent child of whom the person is a principal caregiver during the period, one of the following:

“(i)

$2,444, if the child is under the age of 13 years;

“(ii)

$2,444, if the child is 13, 14, or 15 years of age;

“(iii)

$3,120, if the child is 16 or more years of age;

“(iv)

A weighted average of the amounts in subparagraphs (ii) and (iii) that reflects the proportion of the period that those subparagraphs apply to the child if the child attains 16 years of age during the period; and

“(b)

For each dependent child of whom the person is a principal caregiver during the period, other than the eldest dependent child, one of the following:

“(i)

$1,664, if the child is under the age of 13 years;

“(ii)

$2,080, if the child is 13, 14, or 15 years of age;

“(iii)

$3,120, if the child is 16 or more years of age;

“(iv)

A weighted average of the amounts in subparagraphs (i) and (ii) that reflects the proportion of the period that those subparagraphs apply to the child if the child attains 13 years of age during the period;

“(v)

A weighted average of the amounts in subparagraphs (ii) and (iii) that reflects the proportion of the period that those subparagraphs apply to the child if the child attains 16 years of age during the period; and

“d

is the number of days in the period.

“(4)

The amount of the independent family tax credit under this subsection is calculated using the following formula:

“where—

“c

is the number of dependent children for whom the person is a principal caregiver during the period; and

“e

is the number of days in the period that the person and any spouse of the person does not receive a specified payment and does not have a suspended entitlement to an income-tested benefit.

“(5)

The amount of the family credit abatement under this subsection is calculated using the following formula:

“where—

“f

is—

“(a)

If the qualifying person has no spouse during the period and—

“(i)

The specified income of the person for the period does not exceed $20,000, nil:

“(ii)

The specified income of the person for the period exceeds $20,000 but does not exceed $27,000, 18 cents for each complete dollar of that excess:

“(iii)

The specified income of the person for the period exceeds $27,000, the amount of $1,260 increased by 30 cents for each complete dollar of the excess; or

“(b)

If the person has a spouse during the period and—

“(i)

The specified income of the person, or the specified income of the spouse, or the sum of those specified incomes, as the case may be, for the period does not exceed $20,000, ml:

“(ii)

The specified income of the person, or the specified income of the spouse, or the sum of those specified incomes, as the case may be, for the period exceeds $20,000 but does not exceed $27,000, 18 cents for every complete dollar of that excess:

“(iii)

The specified income of the person, or the specified income of the spouse, or the sum of those specified incomes, as the case may be, for the period exceeds $27,000, the amount of $1,260 increased by 30 cents for every complete dollar of the excess; and

“d

is the number of days in the period.

“(6)

For the purposes of this section, the estimated entitlement of the person to a guaranteed minimum family income is calculated,—

“(a)

For a person who has no spouse, using the following formula:

“where—

“x

is $14,768; and

“y

is the net specified income in relation to that person and to the period; and

“z

is the number (if any) of periods of one week in the period in relation to each of which the person is a full-time earner; and

“(b)

If a person has a spouse, for each of the person and the spouse, 50% of the amount calculated using the following formula:

“where—

“x

is $14,768; and

“y

is the net specified income in relation to the person and to the period, or the net specified income in relation to the spouse and to the period, or the aggregate of the net specified income in relation to the person and to the spouse and to the period; and

“z

is the number (if any) of periods of one week in the period in relation to each of which the person is a full-time earner.”.

(2)

Subsection (1) comes into force on 1 January 1998.

(3)

Notwithstanding subsection (2), the Commissioner of Inland Revenue may issue, before 1 January 1998, a certificate of entitlement under the Income Tax Act 1994 for a period commencing on or after 1 January 1998 as if this section came into force on the date on which this Act received the Royal assent.

6 Rates for interim instalments for period beginning on 1 July 1998

(1)

In section KD 5B(3) (as inserted by section 42 of the Income Tax Act 1994 Amendment Act 1996), the definition of item “a” is replaced by:

“a

is an amount equal to the sum of—

“(a)

For the eldest dependent child of whom the person is a principal caregiver during the period, one of the following:

“(i)

$2,444, if the child is under the age of 13 years;

“(ii)

$2,444, if the child is 13, 14, or 15 years of age;

“(iii)

$3,120, if the child is 16 or more years of age;

“(iv)

A weighted average of the amounts in subparagraphs (ii) and (iii) that reflects the proportion of the period that those subparagraphs apply to the child if the child attains 16 years of age during the period; and

“(b)

For each dependent child of whom the person is a principal caregiver during the period, other than the eldest dependent child, one of the following:

“(i)

$1,664, if the child is under the age of 13 years;

“(ii)

$2,080, if the child is 13, 14, or 15 years of age;

“(iii)

$3,120, if the child is 16 or more years of age;

“(iv)

A weighted average of the amounts in subparagraphs (i) and (ii) that reflects the proportion of the period that those subparagraphs apply to the child if the child attains 13 years of age during the period;

“(v)

A weighted average of the amounts in subparagraphs (ii) and (iii) that reflects the proportion of the period that those subparagraphs apply to the child if the child attains 16 years of age during the period; and”.

(2)

Subsection (1) comes into force on 1 July 1998.

7 Director-General to deliver credit of tax

In section KD 6(1A), paragraph (ia) is replaced by:

“(ia)

Section KD 5AB, for a period beginning on or after 1 July 1997 and ending on or before 31 December 1997; or

“(ib)

Section KD 5AC, for a period beginning on or after 1 January 1998 and ending on or before 30 June 1998; or”.

8 Definitions

(1)

Section OB 1 is amended as follows:

(a)

In paragraph (a) of the definition of “family credit”, “or section KD 5AC(2)” is inserted after “section KD 5AB(2)”;

(b)

In paragraph (a) of the definition of “family credit abatement”, “or section KD 5AC(5)” is inserted after “section KD 5AB(5)”;

(c)

In paragraph (a) of the definition of “family support credit”, “or section KD 5AC(3)” is inserted after “section KD 5AB(3)”;

(d)

In paragraph (a) of the definition of “guaranteed minimum family income”, “or section KD 5AC(6)” is inserted after “section KD 5AB(6)”;

(e)

In the definition of “income-tested benefit”, “young job seeker’s allowance,” is inserted after “widow’s benefit,”; and

(f)

In paragraph (a) of the definition of “independent family tax credit”, “or section KD 5AC(4)” is inserted after “section KD 5AB(4)”.

(2)

Subsection (1) comes into force on 1 January 1998.

This Act is administered in the Inland Revenue Department.
Act Repealed Latest version as at 30 June 1997 (as enacted)

Income Tax Act 1994 Amendment Act 1997

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