Budget Bills Pass Lower House in Commonwealth

The package of Bills proposing to impose the temporary budget repair levy have been passed by the House of Representatives in the Commonwealth without amendment and now moves to the Senate (the Bills have been referred to the Senate Economics Legislation Committee for consideration and report by 16 June 2014). 

These bills include:

• Tax Laws Amendment (Temporary Budget Repair Levy) Bill 2014
• Income Tax Rates Amendment (Temporary Budget Repair Levy) Bill 2014
• Family Trust Distribution Tax (Primary Liability) Amendment (Temporary Budget Repair Levy) Bill 2014
• Fringe Benefits Tax Amendment (Temporary Budget Repair Levy) Bill 2014
• Income Tax (Bearer Debentures) Amendment (Temporary Budget Repair Levy) Bill 2014
• Income Tax (First Home Saver Accounts Misuse Tax) Amendment (Temporary Budget Repair Levy) Bill 2014
• Income Tax (TFN Withholding Tax (ESS)) Amendment (Temporary Budget Repair Levy) Bill 2014
• Superannuation (Departing Australia Superannuation Payments Tax) Amendment (Temporary Budget Repair Levy) Bill 2014
• Superannuation (Excess Non-concessional Contributions Tax) Amendment (Temporary Budget Repair Levy) Bill 2014
• Superannuation (Excess Untaxed Roll-over Amounts Tax) Amendment (Temporary Budget Repair Levy) Bill 2014
• Taxation (Trustee Beneficiary Non-disclosure Tax) (No 1) Amendment (Temporary Budget Repair Levy) Bill 2014
• Taxation (Trustee Beneficiary Non-disclosure Tax) (No 2) Amendment (Temporary Budget Repair Levy) Bill 2014
• Tax Laws Amendment (Untainting Tax) (Temporary Budget Repair Levy) Bill 2014
• Tax Laws Amendment (Interest on Non-Resident Trust Distributions) (Temporary Budget Repair Levy) Bill 2014
• Trust Recoupment Tax Amendment (Temporary Budget Repair Levy) Bill 2014.

The temporary budget repair levy will apply to high-income individuals from 1 July 2014 until 30 June 2017. It will apply at a rate of 2% on an individual's taxable income in excess of $180,000 pa.

A number of other tax rates that are currently based on calculations that include the top personal tax rate will also be increased. With the exception of the fringe benefits tax rate, these tax rates will be increased for the same period that the temporary budget repair levy is in place. 

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Budget Bills as passed in TimeBase LawOne