The concept of rebate income will replace thresholds previously based on ‘taxable income' from 1 July 2009.

Rebate Income =

Taxable Income

+

Adjusted Fringe Benefits (AFB) amount

(i.e. reportable fringe benefits with FBT gross up reversed)

+

Total Net Investment Losses (NI Losses)

(i.e. net financial investment losses and net rental property losses)

+

Reportable superannuation contributions (RSC).

This will be used for entitlements or obligations where a threshold is relevant e.g. Medicare Levy Surcharge, Senior Australians tax offset, Centrelink benefits, etc., etc., etc.