Legislation containing important tax measures have been passed by the Parliament, said Assistant Treasurer David Bradbury.
The Tax Laws Amendment (2012 Measures No. 1) Bill 2012, Tax Laws Amendment (2012 Measures No. 3) Bill 2012 and Tax Laws Amendment (Medicare Levy and Medicare Levy Surcharge) Bill 2012 were all passed by the Senate this week.
"These important measures make sure that our taxation system is fair and delivers a better return for taxpayers," said Mr Bradbury.
"These measures will make taxation of employment termination payments fairer by scaling back concessions for certain payments, such as large 'golden handshakes' typically received by senior executives as part of their overall remuneration. The existing concession will be retained for payments related to hardship, namely redundancy payments, compensation for employment-related disputes, and payments for invalidity or death.
"They will also ensure that Clean Energy Advances paid to veterans and other recipients of household assistance will not be subject to income tax, and that people on low-incomes with no tax liability will not have to pay the Medicare Levy."
The Government has also today introduced the Tax Laws Amendment (Managed Investment Trust Withholding Tax) Bill 2012 to give effect to the change to the withholding tax rate proposed in the 2012-13 Budget.