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Reforms to Income Tests - 2008-09 Budget Measures

Date:

Friday, 7 November 2008

Content ID:

1438

Abstract:

In the 2008-09 Budget, the Government announced four measures to reform income tests across the tax and transfer systems (see Treasurer's Media Release No. 046 and Media Release No. 047 of 13 May 2008).

In summary, these measures will include particular salary sacrificed contributions to superannuation in income tests for relevant tax and transfer system programs. Net financial investment losses and net rental property losses where appropriate, will be added to applicable income tests. Further, adjusted fringe benefits will be assessed as income for those tax programs where they are not already included and the income tests for the dependency tax offsets will also be amended.

The proposed changes will remove inconsistencies in the treatment of non-wage remuneration and ensure a better measure of income is assessed for government assistance purposes. The dependency tax offsets reform will more closely align income definitions with those used for family assistance purposes. The measures will provide an overall saving to the Budget of around $638 million over the next four years.

Comments are sought on the draft legislation giving effect to these reforms. Electronic lodgement is preferred.

Comments closing date: close of business Friday 5 December 2008.

Address written comments to:

Income Reforms Team
Personal and Retirement Income Division
The Treasury
Langton Crescent
PARKES ACT 2600

Email: incomereforms@treasury.gov.au

Telephone: Conan Brownbill on (02) 6263 3242

Documents Available:


Acrobat (PDF) documents

 Acrobat (PDF)

Reforms to Income Tests - Consultation Paper  185.16kb
Reforms to Income Tests - Exposure Draft Bill  92.51kb
Reforms to Income Tests - Consultation Summary  43.00kb

Microsoft Word (RTF) documents

 Microsoft Word (RTF)

Reforms to Income Tests - Consultation Paper  275.17kb
Reforms to Income Tests - Exposure Draft Bill  256.53kb
Reforms to Income Tests - Consultation Summary  448.13kb

Related Items:

Submissions: Reforms to Income Tests - 2008-09 Budget Measures - 23/02/2009
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