SCHEDULES

SCHEDULE 1Abolition of starting and savings rates and creation of starting rate for savings

Part 1Amendments of ITA 2007

7

In section 16(1) (savings and dividend income to be treated as highest part of total income), for the words from “the rate” to the end substitute

a

the extent to which a person's income up to the starting rate limit for savings consists of savings income, and

b

the rate at which income tax would be charged on a person's dividend income apart from section 13.