20th Jun 2018, 7:05 PM – Senate Treasury Laws Amendment (Personal Income Tax Plan) Bill 2018 - in Committee - Low and Middle Income Tax Offset

The majority voted against amendments (1) to (7) introduced by South Australian Senator Penny Wong (Labor), which means they failed.

What did these amendments do?

Though Senator Wong didn't get the chance to speak to her amendments, reading the text below suggests that the purpose of these amendments was to extend the Low and Middle Income Tax Offset (LAMITO) beyond the current end-date of 2021-23. That is, currently the benefits received by low and middle income earners only apply for income years up to 2021-22. These amendments would have deleted that cap and instead inserted the words "or a later income year".

Amendment text

(1) Schedule 1, item 1, page 3 (lines 24 and 25), omit "2018-19, 2019-20, 2020-21 or 2021-22 income year", substitute "2018-19 income year or a later income year".

(2) Schedule 1, item 1, page 4 (lines 5 and 6), omit "2018-19, 2019-20, 2020-21 or 2021-22 income year", substitute "2018-19 income year or a later income year".

(3) Schedule 1, item 1, page 4 (lines 17 and 18), omit the note.

(4) Schedule 1, item 1, page 4 (line 20) to page 5 (line 2), omit subsection 61-107(1), substitute:

General rule—2018 -2019 income year

(1) The amount of your *tax offset for the 2018-19 income year is set out in the following table in respect of the following income (your relevant income):

(a) if you are an individual—your taxable income for the income year;

(b) if you are a trustee—the amount of the share of *net income referred to in subsection 61-105(2).

(5) Schedule 1, item 1, page 5 (after line 2), after subsection 61-107(1), insert:

General rule—2019 -20 income year and later income years

(1A) The amount of your *tax offset for the 2019-20 income year or a later income year is set out in the following table in respect of the following income (your relevant income):

(a) if you are an individual—your taxable income for the income year;

(b) if you are a trustee—the amount of the share of *net income referred to in subsection 61-105(2).

(6) Schedule 1, item 1, page 5 (line 4), omit "subsection (1)", substitute "subsections (1) and (1A)".

(7) Schedule 1, item 1, page 5 (line 23), omit "subsection (1)", substitute "subsections (1) and (1A)".