Treasury Laws Amendment (Delivering an Efficient and Trusted Tax System) Bill 2026
Dr MULINO (Fraser—Assistant Treasurer and Minister for Financial Services) (12:30): I present a supplementary explanatory memorandum to the bill. I seek leave to move government amendments 1 and 2 on sheet EY102 and government amendments 2 and 3 on sheet VS117 as circulated together. Leave granted.
Dr MULINO: I move the amendments: (1) Clause 2, page 2 (at the end of the table), add: 4. Schedule 5 The day after this Act receives the Royal Assent. (2) Page 16 (after line 20), at the end of the Bill, add: Schedule 5 — Increasing the Medicare levy low-income thresholds A New Tax System (Medicare Levy Surcharge — Fringe Benefits) Act 1999 1 Paragraphs 15(1)(c) and 16(2)(c) Omit "$27,222", substitute "$28,011".
Medicare Levy Act 1986 2 Subsection 3(1) (paragraph (a) of the definition of phase-in limit ) Omit "$53,775", substitute "$55,335". 3 Subsection 3(1) (paragraph (c) of the definition of phase-in limit ) Omit "$34,027", substitute "$35,013". 4 Subsection 3(1) (paragraph (a) of the definition of threshold amount ) Omit "$43,020", substitute "$44,268". 5 Subsection 3(1) (paragraph (c) of the definition of threshold amount ) Omit "$27,222", substitute "$28,011". 6 Subsection 8(5) (definition of family income threshold ) Omit "$45,907", substitute "$47,238". 7 Subsection 8(5) (definition of family income threshold ) Omit "$4,216", substitute "$4,338". 8 Subsections 8(6) and (7) Omit "$45,907", substitute "$47,238". 9 Subsection 8(7) Omit "$59,886", substitute "$61,623". 10 Paragraph 8D(3)(c) Omit "$27,222", substitute "$28,011". 11 Subparagraph 8D(4)(a)(ii) Omit "$27,222", substitute "$28,011". 12 Paragraph 8G(2)(c) Omit "$27,222", substitute "$28,011". 13 Subparagraph 8G(3)(a)(ii) Omit "$27,222", substitute "$28,011". 14 Application provision The amendments made by this Schedule apply in relation to assessments for the 2025-26 year of income and later years of income.
(2) Clause 2, page 2 (at the end of the table), add: 5. Schedule 6 As follows: (a) if this Act receives the Royal Assent on or before 20 July 2026—20 September 2026; (b) if this Act receives the Royal Assent after 20 July 2026—the first 20 March or 20 September to occur after the end of the period of 3 months beginning on the day this Act receives the Royal Assent.
(3) Page 16 (after line 20), at the end of the Bill, add: Schedule 6 — Pension supplement while overseas Social Security Act 1991 1 Subsection 23(1) (definition of pension supplement amount ) After "the amount", insert "(if any)". 2 Point 1064-A1 (method statement, step 1A) After "pension supplement", insert "(if any)". 3 Points 1064-BA1 and 1064-BA2 Repeal the points, substitute: Pension supplement 1064-BA1 A pension supplement amount is to be added to the person's maximum basic rate if the person is residing in Australia and: (a) is in Australia; or (b) is temporarily absent from Australia and has been so for a continuous period not exceeding 12 weeks. 1064-BA2 The person's pension supplement amount is: (a) if an election by the person under subsection 1061VA(1) is in force—the amount worked out under point 1064-BA4; and (b) otherwise—the amount worked out under point 1064-BA3. 4 Point 1064-BA3 (heading) Repeal the heading, substitute: Amount if no election in force 5 Point 1064-BA4 (heading) Repeal the heading, substitute: Amount if election in force 6 Point 1064-BA5 Repeal the point. 7 Point 1065-A1 (method statement, step 2A) After "pension supplement", insert "(if any)". 8 Points 1065-BA1 and 1065-BA2 Repeal the points, substitute: Pension supplement 1065-BA1 A pension supplement amount is to be added to the person's maximum basic rate if the person is residing in Australia and: (a) is in Australia; or (b) is temporarily absent from Australia and has been so for a continuous period not exceeding 12 weeks. 1065-BA2 The person's pension supplement amount is: (a) if an election by the person under subsection 1061VA(1) is in force—the amount worked out under point 1065-BA4; and (b) otherwise—the amount worked out under point 1065-BA3. 9 Point 1065-BA3 (heading) Repeal the heading, substitute: Amount if no election in force 10 Point 1065-BA4 (heading) Repeal the heading, substitute: Amount if election in force 11 Point 1065-BA5 Repeal the point. 12 Paragraph 1067L-BA1(b) Omit "6", substitute "12". 13 Paragraph 1068-BA1(b) Omit "6", substitute "12". 14 Point 1068A-A1 (method statement, step 1A) After "pension supplement", insert "(if any)". 15 Points 1068A-BA1 and 1068A-BA2 Repeal the points, substitute: Pension supplement 1068A-BA1 A pension supplement amount is to be added to the person's maximum basic rate if the person is residing in Australia and: (a) is in Australia; or (b) is temporarily absent from Australia and has been so for a continuous period not exceeding 12 weeks. 1068A-BA2 The person's pension supplement amount is: (a) if the person has reached pension age: (i) if an election by the person under subsection 1061VA(1) is in force—the amount worked out under point 1068A-BA4; and (ii) otherwise—the amount worked out under point 1068A-BA3; and (b) if the person has not reached pension age—the amount worked out under point 1068A-BA5. 16 Point 1068A-BA3 (heading) Repeal the heading, substitute: Amount if person of pension age and no election in force 17 Point 1068A-BA4 (heading) Repeal the heading, substitute: Amount if person of pension age and election in force 18 Point 1068A-BA5 (heading) Repeal the heading, substitute: Amount if person has not reached pension age 19 Point 1068A-BA5 Omit "If the person is not covered by point 1068A-BA2, the", substitute "The". 20 Paragraph 1068B-DA1(b) Omit "6", substitute "12". 21 After section 1216 Insert: 1216A Rate of payment may be affected during absence from Australia A reference in this Division to a person's right to continue to be paid a payment not being affected merely by the person's absence does not imply that the person's rate of payment cannot be affected because of the absence.
Note: A person's rate of payment is worked out in accordance with the relevant Rate Calculator in Chapter 3. 22 Subclause 146(4) (note 4) of Schedule 1A Omit "6", substitute "12". 23 Subclause 146(4) (note 5) of Schedule 1A Omit "6", substitute "12". 24 Subparagraph 147(1)(c)(ii) of Schedule 1A Omit "6", substitute "12". 25 Subparagraph 147(2)(c)(ii) of Schedule 1A Omit "6", substitute "12". 26 Subparagraph 147(3)(b)(ii) of Schedule 1A Omit "6", substitute "12". 27 Subclause 147(3) of Schedule 1A (method statement) At the end of the method statement, add: Step 3.
Subtract the amount of the person's pension supplement basic amount (disregarding subclause 149(4)) on the relevant day. 28 Subparagraph 147(4)(b)(ii) of Schedule 1A Omit "6", substitute "12". 29 Subclause 147(4) of Schedule 1A (method statement) At the end of the method statement, add: Step 3. Subtract the amount of the person's pension supplement basic amount (disregarding subclause 149(4)) on the relevant day. 30 Subclause 149(4) of Schedule 1A Omit "The", substitute "Subject to subclauses (4A) and (4B), the". 31 After subclause 149(4) of Schedule 1A Insert: (4A) If subclause 147(3) or (4) is relevant to the person on a relevant day, the social security law applies in relation to the person's pension as if each reference in the table in subsection 20A(5) to $507 were a reference to: (a) that reference as modified by paragraph (4)(a) of this clause on the relevant day; less (b) the amount subtracted under step 3 of the method statement in subclause 147(3) or (4) (as the case may be) on the relevant day.
(4B) If subclause 147(3) or (4) is relevant to the person on a relevant day, the social security law applies in relation to the person's pension as if each reference in the table in subsection 20A(5) to $423.80 were a reference to: (a) that reference as modified by paragraph (4)(b) of this clause on the relevant day; less (b) the amount subtracted under step 3 of the method statement in subclause 147(3) or (4) (as the case may be) on the relevant day. 32 Application provision (1) In this item: commencement day means the day on which this Schedule commences.
(2) The amendments of the Social Security Act 1991 made by this Schedule apply to a person: (a) who is absent or temporarily absent from Australia for a continuous period beginning on or after the commencement day; or (b) who is not residing in Australia on or after the commencement day. (3) The amendments of the Social Security Act 1991 made by this Schedule apply to a person who is absent or temporarily absent from Australia for a continuous period: (a) beginning before the commencement day; and (b) ending on or after the commencement day; in relation to the part of the period occurring on or after the commencement day.
Veterans' Entitlements Act 1986 33 Subsection 5Q(1) (definition of pension supplement amount ) After "the amount", insert "(if any)". 34 Subparagraph 58A(7)(b)(ii) Omit "6", substitute "12". 35 Subparagraph 58A(8)(b)(ii) Omit "6", substitute "12". 36 After subsection 58K(1) Insert: (2) However, the reference in subsection (1) to a person's right to continue to be paid a pension or supplement not being affected by the fact that the person leaves Australia does not imply that the person's rate of payment cannot be affected because of the absence from Australia.
Note: A person's rate of payment is worked out in accordance with the Rate Calculator. 37 Subparagraph 60(1)(b)(ii) Omit "6", substitute "12". 38 Subclause 30(4) of Schedule 5 (note 4) Omit "6", substitute "12". 39 Subclause 30(4) of Schedule 5 (note 5) Omit "6", substitute "12". 40 Subparagraph 31(1)(c)(ii) of Schedule 5 Omit "6", substitute "12". 41 Subparagraph 31(2)(c)(ii) of Schedule 5 Omit "6", substitute "12". 42 Subparagraph 31(3)(b)(ii) of Schedule 5 Omit "6", substitute "12". 43 Subclause 31(3) of Schedule 5 (method statement) At the end of the method statement, add: Step 3.
Subtract the amount of the person's pension supplement basic amount (disregarding subclause 34(4)) on the relevant day. 44 Subparagraph 31(4)(b)(ii) of Schedule 5 Omit "6", substitute "12". 45 Subclause 31(4) of Schedule 5 (method statement) At the end of the method statement, add: Step 3. Subtract the amount of the person's pension supplement basic amount (disregarding subclause 34(4)) on the relevant day. 46 Subclause 34(4) of Schedule 5 Omit "This", substitute "Subject to subclauses (4A) and (4B), this". 47 After subclause 34(4) of Schedule 5 Insert: (4A) If subclause 31(3) or (4) is relevant to the person on a relevant day, this Act applies in relation to the person's service pension or income support supplement as if each reference in the table in subsection 5GA(4) to $509.60 were a reference to: (a) that reference as modified by paragraph (4)(a) of this clause on the relevant day; less (b) the amount subtracted under step 3 of the method statement in subclause 31(3) or (4) (as the case may be) on the relevant day.
(4B) If subclause 31(3) or (4) is relevant to the person on a relevant day, this Act applies in relation to the person's service pension or income support supplement as if each reference in the table in subsection 5GA(4) to $426.40 were a reference to: (a) that reference as modified by paragraph (4)(b) of this clause on the relevant day; less (b) the amount subtracted under step 3 of the method statement in subclause 31(3) or (4) (as the case may be) on the relevant day. 48 Subpoint SCH6-A1(2) of Schedule 6 (method statement, step 1A) After "pension supplement", insert "(if any)". 49 Subpoint SCH6-A1(3) of Schedule 6 (method statement, step 2A) After "pension supplement", insert "(if any)". 50 Subpoint SCH6-A1(6) of Schedule 6 (method statement, step 1A) After "pension supplement", insert "(if any)". 51 Subpoint SCH6-A1(8) of Schedule 6 (method statement, step 2) After "pension supplement", insert "(if any)". 52 Subpoint SCH6-A1(9) of Schedule 6 (method statement, step 3) After "pension supplement", insert "(if any)". 53 Points SCH6-BA1 and SCH6-BA2 of Schedule 6 Repeal the points, substitute: Pension supplement SCH6-BA1 A pension supplement amount is to be added to the person's maximum basic rate if the person is residing in Australia and: (a) is in Australia; or (b) is temporarily absent from Australia and has been so for a continuous period not exceeding 12 weeks.
SCH6-BA2 The person's pension supplement amount is: (a) if an election by the person under subsection 60A(1) is in force—the amount worked out under point SCH6-BA4; and (b) otherwise—the amount worked out under point SCH6-BA3. 54 Point SCH6-BA3 of Schedule 6 (heading) Repeal the heading, substitute: Amount if no election in force 55 Point SCH6-BA4 of Schedule 6 (heading) Repeal the heading, substitute: Amount if election in force 56 Point SCH6-BA5 of Schedule 6 Repeal the point. 57 Application provision (1) In this item: commencement day means the day on which this Schedule commences.
(2) The amendments of the Veterans' Entitlements Act 1986 made by this Schedule apply to a person: (a) who is absent or temporarily absent from Australia for a continuous period beginning on or after the commencement day; or (b) who is not residing in Australia on or after the commencement day. (3) The amendments of the Veterans' Entitlements Act 1986 made by this Schedule apply to a person who is absent or temporarily absent from Australia for a continuous period: (a) beginning before the commencement day; and (b) ending on or after the commencement day; in relation to the part of the period occurring on or after the commencement day.
Question agreed to.