Media Releases

NO.081

As I announced on 23 November, the temporary Defence - East Timor Levy will apply at a rate of 0.5 per cent on total taxable incomes above $50,000 per annum and one per cent on total taxable incomes above $100,000 per annum. The levy will apply for 12 months only, commencing from 1 July 2000.

Taxable income does not include reportable fringe benefits. This will mean that a taxpayer with a taxable income below $50,000 will not be subject to the levy, regardless of whether or not they are receiving reportable fringe benefits. It is not Government policy to include reportable fringe benefits in the calculation of taxable income for purposes of the Defence - East Timor Levy. Reportable fringe benefits are not included for the purposes of calculating the Medicare levy and would therefore not cover this temporary increase.

The Government considers that the arrangements for the levy as announced are fair.

CANBERRA

25 November 1999