TAXATION LAWS AMENDMENT (No. 3) 1990 No. 58 of 1990 - LONG TITLE

An Act to amend the law relating to taxation

PART 1 - PRELIMINARY

TAXATION LAWS AMENDMENT (No. 3) 1990 No. 58 of 1990

- SECT 1

Short title [see Note 1]

1. This Act may be cited as the Taxation Laws Amendment Act (No. 3) 1990.

TAXATION LAWS AMENDMENT (No. 3) 1990 No. 58 of 1990

- SECT 2

Commencement [see Note 1]

2. (1) Subject to this section, this Act commences on the day on which it

receives the Royal Assent.

(2) Section 11 commences, or is taken to have commenced, as the case

requires, at the commencement of Part 3 of the Taxation Laws Amendment Act

(No. 2) 1990.

(3) Section 23 is taken to have commenced on 4 December 1989.

(4) Part 5 is taken to have commenced on 11 May 1989.

PART 2 - AMENDMENT OF THE CRIMES (TAXATION OFFENCES) ACT 1980

TAXATION LAWS AMENDMENT (No. 3) 1990 No. 58 of 1990

- SECT 3

Principal Act

3. In this Part, ''Principal Act'' means the Crimes (Taxation Offences) Act

1980.*1*

*1* No. 156, 1980, as amended. For previous amendments, see No. 123, 1984; No.

47, 1985; Nos. 41, 48, 76 and 154, 1986; Nos. 58, 61, 140 and 145, 1987; No.

97, 1988; and No. 20, 1990.

TAXATION LAWS AMENDMENT (No. 3) 1990 No. 58 of 1990

- SECT 4

Interpretation

4. Section 3 of the Principal Act is amended by omitting "221AG" from

paragraph (b) of the definition of "income tax" in subsection (1) and

substituting "221AG,".

PART 3 - AMENDMENT OF THE FRINGE BENEFITS TAX ASSESSMENT ACT 1986

TAXATION LAWS AMENDMENT (No. 3) 1990 No. 58 of 1990

- SECT 5

Principal Act

5. In this Part, ''Principal Act'' means the Fringe Benefits Tax Assessment

Act 1986.*2*

*2* No. 39, 1986, as amended. For previous amendments, see Nos. 48 and 112,

1986; Nos. 23 and 145, 1987; No. 139, 1987 (as amended by Nos. 11 and 78,

1988); Nos. 6, 78, 95, 97 and 153, 1988; and Nos. 2, 11, 97 and 107, 1989.

TAXATION LAWS AMENDMENT (No. 3) 1990 No. 58 of 1990

- SECT 6

Amortisation of taxable value of fringe benefits relating to remote

area home ownership schemes

6. Section 65CA of the Principal Act is amended by adding at the

end the following subsections:

"(6) Where the following paragraphs apply in relation to a fringe

benefit in relation to an employer in relation to a year of tax:

(a) the fringe benefit would have been an amortised fringe

benefit if the reference in subsection 142 (2d) to 5 years were a

reference to 7 years;

(b) the benefit time occurred before 31 August 1988;

the employer is eligible for extended amortisation treatment.

"(7) Where:

(a) an employer is eligible for extended amortisation treatment;

and

(b) a fringe benefit in relation to the employer in relation to a

year of tax would have been an amortised fringe benefit if the

reference in subsection 142 (2d) to a contractual obligation were

a reference to a contractual obligation entered into before the end

of the period of 6 months after the commencement of this

subsection;

the following provisions have effect:

overall amortisation period in relation to the fringe benefit is to be

read as a reference to the period that would have been the overall

amortisation period in relation to the fringe benefit if the reference

in subparagraph (1) (d) (vii) of this section to 7 years were a

reference to 15 years;

(d) for the purpose of determining the notional amortisation

period in relation to the fringe benefit, the reference in paragraph

(2) (b) of this section to 7 years is to be read as a reference to 15

years.".

TAXATION LAWS AMENDMENT (No. 3) 1990 No. 58 of 1990

- SECT 7

Application of amendments

7. (1) Subject to this section, the amendment made by this Part applies to

assessments of the fringe benefits taxable amount of an employer of the

transitional year of tax and of each subsequent year of tax.

(2) The amendment made by this Part does not apply to instalments of tax in

respect of the transitional year of tax.

TAXATION LAWS AMENDMENT (No. 3) 1990 No. 58 of 1990

- SECT 8

Amendment of assessments

8. Section 74 of the Principal Act does not prevent the amendment of an

assessment made before the commencement of this section for the purpose of

giving effect to this Act.

PART 4 - AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

TAXATION LAWS AMENDMENT (No. 3) 1990 No. 58 of 1990

- SECT 9

Principal Act

9. In this Part, ''Principal Act'' means the Income Tax Assessment Act

1936.*3*

*3* No. 27, 1936, as amended. For previous amendments, see No. 88, 1936; No.

5, 1937; No. 46, 1938; No. 30, 1939; Nos. 17 and 65, 1940; Nos. 58 and 69,

1941; Nos. 22 and 50, 1942; No. 10, 1943; Nos. 3 and 28, 1944; Nos. 4 and 37,

1945; No. 6, 1946; Nos. 11 and 63, 1947; No. 44, 1948; No. 66, 1949; No. 48,

1950; No. 44, 1951; Nos. 4, 28 and 90, 1952; Nos. 1, 28, 45 and 81, 1953; No.

43, 1954; Nos. 18 and 62, 1955; Nos. 25, 30 and 101, 1956; Nos. 39 and 65,

1957; No. 55, 1958; Nos. 12, 70 and 85, 1959; Nos. 17, 18, 58 and 108, 1960;

Nos. 17, 27 and 94, 1961; Nos. 39 and 98, 1962; Nos. 34 and 69, 1963; Nos. 46,

68, 110 and 115, 1964; Nos. 33, 103 and 143, 1965; Nos. 50 and 83, 1966; Nos.

19, 38, 76 and 85, 1967; Nos. 4, 70, 87 and 148, 1968; Nos. 18, 93 and 101,

1969; No. 87, 1970; Nos. 6, 54 and 93, 1971; Nos. 5, 46, 47, 65 and 85, 1972;

Nos. 51, 52, 53, 164 and 165, 1973; No. 216, 1973 (as amended by No. 20,

1974); Nos. 26 and 126, 1974; Nos. 80 and 117, 1975; Nos. 50, 53, 56, 98, 143,

165 and 205, 1976; Nos. 57, 126 and 127, 1977; Nos. 36, 57, 87, 90, 123, 171

and 172, 1978; Nos. 12, 19, 27, 43, 62, 146, 147 and 149, 1979; Nos. 19, 24,

57, 58, 124, 133, 134 and 159, 1980; Nos. 61, 92, 108, 109, 110, 111, 154 and

175, 1981; Nos. 29, 38, 39, 76, 80, 106 and 123, 1982; Nos. 14, 25, 39, 49,

51, 54 and 103, 1983; Nos. 14, 42, 47, 63, 76, 115, 124, 165 and 174, 1984;

No. 123, 1984 (as amended by No. 65, 1985); Nos. 47, 49, 104, 123, 168 and

174, 1985; No. 173, 1985 (as amended by No. 49, 1986); Nos. 41, 46, 48, 51,

109, 112 and 154, 1986; No. 49, 1986 (as amended by No. 141, 1987); No. 52,

1986 (as amended by No. 141, 1987); No. 90, 1986 (as amended by No. 141,

1987); Nos. 23, 58, 61, 120, 145 and 163, 1987; No. 62, 1987 (as amended by

No. 108, 1987); No. 108, 1987 (as amended by No. 138, 1987); No. 138, 1987 (as

amended by No. 11, 1988); No. 139, 1987 (as amended by Nos. 11 and 78, 1988);

Nos. 8, 11, 59, 75, 78, 80, 87, 95, 97, 127 and 153, 1988; Nos. 2, 11, 56, 70,

73, 105, 107, 129, 163 and 167, 1989; No. 97, 1989 (as amended by No. 105,

1989); and No. 20, 1990.

TAXATION LAWS AMENDMENT (No. 3) 1990 No. 58 of 1990

- SECT 10

Special depreciation on trading ships

10. Section 57AM of the Principal Act is amended by omitting from paragraph

(4) (ba) "1992" and substituting "1997".

TAXATION LAWS AMENDMENT (No. 3) 1990 No. 58 of 1990

- SECT 11

Gifts, pensions etc.

11. Section 78 of the Principal Act is amended by inserting after

subparagraph (1) (a) (cii) the following subparagraphs:

"(ciii) the National Foundation for Australian Women Limited;

(civ) Landcare Australia Limited;

(cv) The Foundation for Development Cooperation Ltd;".

TAXATION LAWS AMENDMENT (No. 3) 1990 No. 58 of 1990

- SECT 12

Interpretation

12. Section 159GZA of the Principal Act is amended by omitting the

definition of "Australian-owned non-resident company".

TAXATION LAWS AMENDMENT (No. 3) 1990 No. 58 of 1990

- SECT 13

Repeal of section 159GZD

13. Section 159GZD of the Principal Act is repealed.

TAXATION LAWS AMENDMENT (No. 3) 1990 No. 58 of 1990

- SECT 14

Foreign controller

14. Section 159GZE of the Principal Act is amended by omitting from

paragraphs (1) (a) and (b) "(other than an Australian-owned non-resident

company)".

TAXATION LAWS AMENDMENT (No. 3) 1990 No. 58 of 1990

- SECT 15

15. After section 159GZZZI of the Principal Act the following Division is

inserted:

''Division 16K - Effect of Buy-backs of Shares

''Subdivision A - Interpretation

Interpretation

''159GZZZJ. In this Division:

'buy-back' has the meaning given by paragraph 159GZZZK (a);

'off-market purchase' has the meaning given by paragraph 159GZZZK (d);

'on-market purchase' has the meaning given by paragraph 159GZZZK (c)

'purchase price' has the meaning given by section 159GZZZM;

'seller' has the meaning given by paragraph 159GZZZK (b).

Explanation of terms

''159GZZZK. For the purposes of this Division, where a company buys a share

in itself from a shareholder in the company:

(a) the purchase is a buy-back; and

(b) the shareholder is the seller; and

(i) the share is listed for quotation in the official list of a stock

exchange in Australia or elsewhere; and

(ii) the buy-back is made in the ordinary course of trading on

that stock exchange;

the buy-back is an on-market purchase; and

(d) if the buy-back is not covered by paragraph (c) - the buy-back is an

off-market purchase.

'Special' buy-backs not made in ordinary course of trading on a stock

exchange

"159GZZZL. For the purposes of this Division, a buy-back is not made in the

ordinary course of trading on a stock exchange in Australia if, when reported

to the stock exchange, the transaction under which the buy-back is made, is,

under the stock exchange's rules, described as 'special'.

Purchase price in respect of buy-back

"159GZZZM. For the purposes of this Division, the purchase price in respect

of a buy-back of a share is:

(a) if the seller has received or is entitled to receive an amount or

amounts of money as a result of or in respect of the buy-back - that amount

or the sum of those amounts; or

(b) if the seller has received or is entitled to receive property other

than money as a result of or in respect of the buy-back - the market value of

that property at the time of the buy-back; or

amounts of money and property other than money as a result of or in respect of

the buy-back - the sum of that amount or those amounts and the market value

of that property at the time of the buy-back.

"Subdivision B - Company Buying-back Shares

Buy-back and cancellation to be disregarded for certain purposes "159GZZZN.

Where a company buys-back a share, then:

(a) in determining, for the purposes of this Act:

(i) whether an amount is included in the assessable income of the

company under a provision of this Act other than Part IIIA; or

(ii) whether an amount is allowable as a deduction to the company;

(b) in determining, for the purposes of Part IIIA:

(i) whether a capital gain accrues to the company; or

(ii) whether the company incurs a capital loss;

in respect of the buy-back, any subsequent cancellation of the share, or

both, the company is to be treated as if neither of those things had

happened.

"Subdivision C - Off-market Purchases

Part of off-market purchase price is a dividend

''159GZZZP. (1) For the purposes of this Act, where a buy-back of a share

by a company is an off-market purchase, so much of the purchase price as

exceeds the sum of:

(a) the amount to which the share was paid-up immediately before the

buy-back; and

(b) the part (if any) of the purchase price in respect of the buy-back of

the share which is debited against amounts standing to the credit of a share

premium account of the company;

is taken to be a dividend paid by the company:

(d) out of profits derived by the company; and

(e) on the day the buy-back occurs.

''(2) The remainder of the purchase price is taken not to be a dividend for

the purposes of this Act.

Consideration in respect of off-market purchase

"159GZZZQ. Where a buy-back of a share is an off-market purchase, then:

(a) in determining, for the purposes of this Act:

(i) whether an amount is included in the assessable income of the

seller under a provision of this Act other than Part IIIA; or

(ii) whether an amount is allowable as a deduction to the seller;

(b) in determining, for the purposes of Part IIIA:

(i) whether a capital gain accrues to the seller; or

(ii) whether the seller incurs a capital loss;

in respect of the buy-back, the seller is taken to have received or to be

entitled to receive, as consideration in respect of the sale of the share, so

much of the purchase price in respect of the buy-back as is not a dividend.

"Subdivision D - On-market Purchases

No part of on-market purchase price is a dividend

''159GZZZR. For the purposes of this Act, where a buy-back by a company of

a share is an on-market purchase, no part of the purchase price in respect of

the buy-back of the share is taken to be a dividend.

Consideration in respect of on-market purchase

"159GZZZS. Where a buy-back is an on-market purchase, then:

(a) in determining, for the purposes of this Act:

(i) whether an amount is included in the assessable income of the seller

under a provision of this Act other than Part IIIA; or (ii) whether an

amount is allowable as a deduction to the seller;

(b) in determining, for the purposes of Part IIIA:

(i) whether a capital gain accrues to the seller; or

(ii) whether the seller incurs a capital loss;

in respect of the buy-back, the seller is taken to have received or to be

entitled to receive, as consideration in respect of the sale of the share,

the purchase price in respect of the buy-back of the share.

"Subdivision E - Miscellaneous

Certain provisions of this Division to be treated as provisions of Part IIIA

''159GZZZT. For the purposes of the application of Part IIIA to a taxpayer,

where the expression 'provision of this Part' or 'provisions of this Part' is

used in that Part, the expression is taken to include a reference to sections

159GZZZN, 159GZZZQ and 159GZZZS.''.

TAXATION LAWS AMENDMENT (No. 3) 1990 No. 58 of 1990

- SECT 16 Interpretation

16. (1) Section 160APA of the Principal Act is amended:

(a) by adding ''or'' at the end of paragraph (b) of the definition

of ''frankable dividend'';

(b) by inserting after paragraph (b) of the definition of

''frankable dividend'' the following paragraph:

''(ba) an amount that is taken to be a dividend under

subsection 159GZZZP (1);'';

dividend'' and substituting ''any'';

(d) by inserting the following definitions:

" 'buy-back' has the same meaning as in Division 16K of Part III;

'off-market purchase' has the same meaning as in Division 16K of

Part III;

'on-market purchase' has the same meaning as in Division 16K of

Part III;".

(2) Section 160APA of the Principal Act is amended by omitting "Part III."

from the definition of "unitholder" and substituting "Part III;".

TAXATION LAWS AMENDMENT (No. 3) 1990 No. 58 of 1990

- SECT 17

17. Before section 160AQD of the Principal Act the following section is

inserted in Division 2 of Part IIIAA:

On-market share buy-back arrangements

"160AQCC. (1) There arises on the day of an on-market purchase by a company

of a share a franking debit of the company equal to the amount calculated

under subsection (2).

"(2) The amount is the amount that would be calculated under subsection

160AQE (1) as the required franking amount for a dividend paid on that day to

a shareholder in the company if that and any other on-market purchase by the

company had been an off-market purchase.".

TAXATION LAWS AMENDMENT (No. 3) 1990 No. 58 of 1990

- SECT 18

Ascertainment of required franking amount

18. Section 160AQE of the Principal Act is amended by adding at the end the

following subsection:

"(5) In calculating a provisional required franking amount, each on-market

purchase of a share by a company is taken to be an off-market purchase.".

TAXATION LAWS AMENDMENT (No. 3) 1990 No. 58 of 1990

- SECT 19

Persons receiving certain pensions etc. - investments

19. Section 202EB of the Principal Act is amended:

(a) by omitting from subsection (1) all the words after "given" and

substituting the following words and paragraphs:

"the following information by the person in a manner approved

by the Commissioner:

(a) the person's full name;

(b) the nature of the pension, benefit or allowance by virtue of

the payment of which the person is a person to whom this section

applies.";

(b) by omitting subsection (2).

TAXATION LAWS AMENDMENT (No. 3) 1990 No. 58 of 1990

- SECT 20

Entities not required to lodge income tax returns

20. Section 202EC of the Principal Act is amended:

(a) by omitting from subsection (1) all the words after "given"

and substituting the following words and paragraphs:

"the following information by the eligible representative in a

manner approved by the Commissioner:

(d) the reason why the entity is not obliged to furnish to the

Commissioner a return under section 161 in respect of the year of

income.";

(b) by omitting subsection (2);

subsection (2) has been given to an investment body" and

substituting "information has been given to an investment body

under subsection (1)".

TAXATION LAWS AMENDMENT (No. 3) 1990 No. 58 of 1990

- SECT 21

Liability to make payments under this Division

21. Section 221AO of the Principal Act is amended by omitting "payments of

income tax" and substituting "payments".

TAXATION LAWS AMENDMENT (No. 3) 1990 No. 58 of 1990

- SECT 22

Notification of instalments of provisional tax

22. Section 221YDAA of the Principal Act is amended by omitting from

paragraph (4) (b) "$5,000" and substituting "$8,000".

TAXATION LAWS AMENDMENT (No. 3) 1990 No. 58 of 1990

- SECT 23

Provisional tax to be credited against other tax

23. Section 221YE of the Principal Act is amended:

(a) by inserting ", or an instalment of provisional tax," after

"has paid provisional tax";

(b) by inserting "or that instalment" after "that provisional tax"

(wherever occurring);

paragraph:

"(b) either of the following amounts:

(i) provisional tax notified to the taxpayer;

(ii) an instalment of provisional tax due and payable by the

taxpayer;

being provisional tax, or an instalment of provisional tax, in respect of

income of the year next succeeding that year of income; and".

TAXATION LAWS AMENDMENT (No. 3) 1990 No. 58 of 1990

- SECT 24

Interpretation

24. Section 267 of the Principal Act is amended by inserting in subsection

(1) the following definitions:

" 'actuary's certificate' means a certificate by an actuary in the form

approved in writing by the Commissioner for the purposes of the provision in

which the expression appears;

'certificate date', in relation to an actuary's certificate, in relation to a

fund, means the date of lodgment of the return of income of the fund of the

year of income to which the certificate relates or such later date as the

Commissioner allows;

'endowment policy' means an insurance policy where the following conditions

are satisfied:

(a) the policy is not a whole of life policy;

(b) the policy includes an investment component;

investment component or otherwise);

(d) the sum insured, together with bonuses (if any), is payable

upon the occurrence of the earlier of the following events:

(i) the death of the life insured;

(ii) the date specified in, or ascertained in accordance with, the

policy;

'whole of life policy' means an insurance policy where the following

conditions are satisfied:

(a) the policy includes an investment component;

(b) the premium is not dissected (whether by reference to the

investment component or otherwise);

upon:

(i) the death of the life insured; or

(ii) the occurrence of the earlier of the following events:

(a) the death of the life insured;

(b) the life insured attaining the age specified in the policy,

being the age of 85 years or more;".

TAXATION LAWS AMENDMENT (No. 3) 1990 No. 58 of 1990

- SECT 25

Segregated current pension assets

25. Section 273A of the Principal Act is amended:

(a) by inserting "in a year of income" after "time" (first occurring) ;

(b) by omitting paragraph (b) and substituting the following

paragraph:

"(b) the trustee of the fund obtains an actuary's certificate

before the certificate date to the effect that the amount of the

assets, if accumulated after the particular time at the rate the

actuary expects will be the rate of the fund's earnings on those

assets, would provide the amount required to discharge in full the

whole or the part, as the case may be, of the current pension

liabilities as they fall due.".

TAXATION LAWS AMENDMENT (No. 3) 1990 No. 58 of 1990

- SECT 26

Segregated non-current pension assets

26. Section 273B of the Principal Act is amended:

(a) by inserting "in a year of income" after "time" (first occurring);

(b) by omitting paragraph (b) and substituting the following

paragraph:

"(b) the trustee of the fund obtains an actuary's certificate

before the certificate date to the effect that the amount of the

assets, together with any future contributions, if accumulated after

the particular time at the rate the actuary expects will be the rate

of the fund's earnings on those assets, would provide the amount

required to discharge in full the whole or the part, as the case may

be, of the non-current pension liabilities as they fall due.".

TAXATION LAWS AMENDMENT (No. 3) 1990 No. 58 of 1990

- SECT 27

Deduction for premiums for death or disability cover

27. Section 279 of the Principal Act is amended:

(a) by omitting subsection (1) and substituting the following

subsections:

"(1) Where, in a year of income, the trustee of a complying

superannuation fund pays a premium for an insurance policy that

is, in whole or in part, in respect of a current or contingent

liability

of the fund to provide death or disability benefits for the members

of the fund:

(a) if:

(i) the policy is a whole of life policy; and

(ii) the life insured, or all of the lives insured, are members of

the fund;

30% of that premium is allowable as a deduction in respect of the

year of income; or

(b) if:

(i) the policy is an endowment policy; and

(ii) the life insured, or all of the lives insured, are members of

the fund;

10% of that premium is allowable as a deduction in respect of the

year of income; or

policy as being wholly in respect of that liability - the whole or

that part, as the case may be, of that premium is allowable as a

deduction in respect of the year of income; or

(d) in any other case - so much of that premium as is

attributable to that liability is allowable as a deduction in respect

of the year of income.

"(1a) For the purposes of subsection (1), if the following conditions are

satisfied in relation to an insurance policy:

(a) apart from this subsection, the policy is neither a whole of

life policy nor an endowment policy;

(b) a distinct part of the policy would, if it were a separate

policy, be a whole of life policy or an endowment policy;

wholly in respect of that part of the policy;

the following provisions have effect:

(d) that part of the policy is taken to be a separate whole of life

policy or a separate endowment policy, as the case may be;

(e) that part of the premium is taken to be a separate premium

for that separate policy.";

(b) by omitting from subsection (2) "lowest";

subsection:

"(3) A deduction is not allowable:

(a) under subsection (1) by virtue of paragraph (1) (d); or

(b) under subsection (2);

unless the trustee of the fund obtains an actuary's certificate, before the

certificate date, with respect to the operation of this section.".

TAXATION LAWS AMENDMENT (No. 3) 1990 No. 58 of 1990

- SECT 28

Exemption of proportion of income attributable to current pension

liabilities

28. Section 283 of the Principal Act is amended:

(a) by omitting from subsection (3) "in the approved form that

accompanies the fund's return of income of the year of income" an d

substituting "that is obtained by the trustee of the fund before the

certificate date";

(b) by inserting in subsection (3) "the actuary expects will be the

rate" after "rate";

income";

(d) by omitting from paragraph (4) (b) "does not accompany the fund's

return" and substituting "is not obtained by the trustee of the fund

before the certificate date";

(e) by omitting from subsection (4) "in the approved form accompanying

the fund's return" (wherever occurring) and substituting "obtained by

the trustee of the fund before the certificate date".

TAXATION LAWS AMENDMENT (No. 3) 1990 No. 58 of 1990

- SECT 29

Application of amendments - general

29. (1) In this section:

"amended Act" means the Principal Act as amended by this Act.

(2) Subparagraph 78 (1) (a) (ciii) of the amended Act applies to

gifts made on or after 5 February 1990.

(3) Subparagraph 78 (1) (a) (civ) of the amended Act applies to

gifts made on or after 1 April 1990.

(4) Subparagraph 78 (1) (a) (cv) of the amended Act applies to

gifts made on or after 12 March 1990.

(5) The amendments made by section 14 apply to assessments in

respect of income of the year of income commencing on 1 July

1990 and of all subsequent years of income.

(6) Division 16K of Part III of the amended Act applies to

buy-backs of shares on or after 1 November 1989.

(7) The amendments made by sections 17 and 18 do not apply to

on-market purchases of shares made before the earliest day on

which a company that:

(a) is incorporated under the Companies Act 1981; and

(b) is included in the official list of a stock exchange in

Australia;

may buy a share in itself in the ordinary course of trading on that

stock exchange.

(8) Expressions used in subsection (7) of this section have the

same meaning as in Division 16K of Part III of the amended Act.

(9) The amendment made by section 22 applies to instalments of provisional

tax in respect of income of the year of income

commencing on 1 July 1989 and of all subsequent years of

income.

TAXATION LAWS AMENDMENT (No. 3) 1990 No. 58 of 1990

- SECT 30

Application of amendments - superannuation

30. (1) Subject to this section, the amendments of Part IX of the Principal

Act made by this Act (in this section called the "Part IX amendments") apply

to assessments in respect of income of the year of income in which 1 July 1988

occurred and of all subsequent years of income.

(2) The Part IX amendments do not apply to assessments in respect of income

in respect of a year of income if:

(a) the fund's return of income of the year of income was lodged

before the commencement of this subsection; and

(b) the trustee of the fund has not made an election, in

accordance with subsection (3), in relation to the year of income.

(3) An election by the trustee of a fund for the purposes of this section

in relation to a year of income:

(a) must be made by notice in writing to the Commissioner; and

(b) must be lodged with the Commissioner before the end of the

period of 2 months after the commencement of this subsection or

within such further time as the Commissioner allows.

TAXATION LAWS AMENDMENT (No. 3) 1990 No. 58 of 1990

- SECT 31

Transitional - National Foundation for Australian Women

31. (1) In this section: "amended Act" means the Principal Act as amended

by this Act.

(2) In addition to the effect that subparagraph 78 (1) (a) (ciii) of the

amended Act has apart from this section, that subparagraph also has the effect

that it would have if:

(a) the reference in that section to the National Foundation for

Australian Women Limited were a reference to the

unincorporated body that was known as the National Foundation

for Australian Women; and

(b) that subparagraph applied to gifts made on or after 10

November 1989 and before 5 February 1990.

TAXATION LAWS AMENDMENT (No. 3) 1990 No. 58 of 1990

- SECT 32

Transitional - section 221YE of the Principal Act

32. During the period commencing on 21 June 1989 and ending on 3 December

1989, section 221YE of the Principal Act is to be taken to have had effect as

if a reference in that section to provisional tax included a reference to an

instalment of provisional tax.

TAXATION LAWS AMENDMENT (No. 3) 1990 No. 58 of 1990

- SECT 33

Transitional - superannuation

33. (1) In this section:

"amended Act" means the Principal Act as amended by this Act.

(2) For the purposes of the amended Act, an approval of a form given for

the purposes of a provision of Part IX of the Principal Act has effect as if

it had been given for the purposes of the corresponding provision of the

amended Act.

(3) For the purposes of the application of section 14 of the Taxation Laws

Amendment Act (No. 2) 1989, the amendments of Part IX of the Principal Act

made by this Act have effect as if they had been made by the Taxation Laws

Amendment (Superannuation) Act 1989.

TAXATION LAWS AMENDMENT (No. 3) 1990 No. 58 of 1990

- SECT 34

Transitional - 1990-91 provisional tax

34. (1) In this section:

"amended Act" means the Principal Act as amended by this Act;

"1989-90 year of income" means the year of income that commenced on 1 July

1989.

(2) In determining the applicable provisional tax amount in relation to an

instalment (other than the final instalment) of provisional tax payable by a

taxpayer for the year of income commencing on 1 July 1990, Division 3 of Part

VI of the amended Act has effect as if:

(a) a reference in that Division to the basic provisional tax

amount, as at a particular date (in this paragraph called the

"reckoning date"), in relation to the 1989-90 year of income,

were a reference to the amount:

(i) ascertained under section 221YC of the amended Act (as

affected by any reduction under section 221YDC of the amended

Act or any alteration under section 221YG of the amended Act) as

the provisional tax payable by the taxpayer in respect of the

income of the 1989-90 year of income; and

(ii) notified by the Commissioner to the taxpayer:

(A) in an instalment notice; or

(B) in a notice under subsection 221YG (1) of the amended Act; where the

date specified in the notice as the date of issue of the notice is not later

than the reckoning date; and

(b) sections 221YDC and 221YG of the amended Act applied in

determining that basic provisional tax amount as if a reference in

those sections to provisional tax were a reference to the amount

ascertained under section 221YC of the amended Act as the

provisional tax payable by the taxpayer in respect of the income of

the 1989-90 year of income; and

amount, subsection (3) of this section applied in determining the

amount ascertained under section 221YC of the amended Act as

the provisional tax payable by the taxpayer in respect of the

income of the 1989-90 year of income.

(3) For the purposes of the application of subsection 221YC (1) of the

amended Act (as that subsection applies for the purposes of subsection (2) of

this section) in ascertaining the amount of provisional tax payable by a

taxpayer in respect of the 1989-90 year of income, being a taxpayer who would,

apart from this section and subsection 221YBA (5) of the amended Act, be

liable to pay provisional tax calculated in accordance with subsection 221YC

(1) or (1a) of the amended Act in respect of the 1989-90 year of income:

(a) if paragraph 221YC (1) (a) of the amended Act applies to the

taxpayer - the amount of provisional tax payable by the taxpayer

in respect of the 1989-90 year of income by virtue of that

paragraph is the amount calculated using the formula:

Adjusted preceding year's tax - Qualifying reductions

where:

"Adjusted preceding year's tax" means the amount of income

tax that would have been assessed in respect of the amount that would have

been the taxable income of the taxpayer of the year of income (in this

subsection called the "preceding year of income") that immediately preceded

the 1989-90 year of income if:

(i) the taxable income of the taxpayer of the preceding year of

income had, except for the purpose of determining the notional

income for the purpose of section 59AB or 86 of the amended Act,

been increased by 10%; and

(ii) where, for the purposes of Division 6AA of Part III of the

amended Act:

(A) in the case of a taxpayer to whom Subdivision C of Division

3 of Part II of the Income Tax Rates Act 1986 applied - the

taxpayer's eligible taxable income of the preceding year of income

exceeded $416; or

(B) in the case of a taxpayer to whom Subdivision D of Division

3 of Part II of the Income Tax Rates Act 1986 applied - the

taxpayer had an eligible taxable income of the preceding year of

income;

that eligible taxable income had been increased by 10%; and

(iii)for the purposes of Division 16A of Part III of the amended

Act (other than the purpose of calculating the average eligible

taxable income of the taxpayer of the 1989-90 year of income),

the eligible taxable income of the taxpayer of the preceding year

of income had been increased by 10%; and

(iv) for the purposes of section 156 of the amended Act, the

deemed taxable income from primary production of the taxpayer

of the preceding year of income had been increased by 10%; and

(v) the Income Tax Rates Act 1986, other than Division 4 of

Part II, as that Act applies to assessments in respect of the 1989-90

year of income, had been in force and applied to assessments

in respect of the preceding year of income; and

(vi) the Medicare Levy Act 1986, as that Act applies to

assessments in respect of the 1989-90 year of income, had been in

force and applied to assessments in respect of the preceding year

of income; and

(vii)where Division 16 of Part III of the amended Act applied in

the taxpayer's assessment in respect of the preceding year of

income - that Division had applied as if the conditions set out in

subparagraphs (i) to (vi) (inclusive) were applicable for the

purposes of making that assessment other than for the purpose of

determining the average income of the taxpayer for the purposes

of the application of that Division; and

(viii)the taxpayer had not been entitled to any rebate (other

than a rebate under section 156 of the amended Act applicable in

relation to the taxpayer in accordance with subparagraph (vii)) or

credit in the taxpayer's assessment; and

(ix) the assessable income of the taxpayer of the preceding year

of income had not included any net capital gain within the

meaning of Part IIIA of the amended Act;

"Qualifying reductions" means the sum of:

(x) the rebates (other than a rebate under section 23AB, 79A,

79B, 156, 159J, 159K, 159L, 160AQU, 160AQX, 160AQY, 160AQYA or

160AQZ of the amended Act) and credits (other than a credit under

section 160AF of the amended Act) to which the taxpayer was

entitled in the taxpayer's assessment in respect of income of the

preceding year of income; and

(xi) where the taxpayer was entitled to a particular rebate (in

this subparagraph called the "location rebate") under section

23AB, 79A or 79B of the amended Act in the taxpayer's assessment

in respect of income of the preceding year of income:

(A) if the location rebate was calculated by reference to one or

more rebates (in this sub-subparagraph called the "concessional

rebates") of a particular kind to which the taxpayer was entitled in

respect of the preceding year of income under section 159J, 159K

or 159L of the amended Act - the sum of the location rebate and

20% of the increase (if any) in the amount of each concessional

rebate of that kind provided for by the amendments of sections

159J, 159K and 159L of the amended Act made by the Taxation

Laws Amendment (Rates and Rebates) Act 1989; or

(B) in any other case - the amount of the location rebate; and

(xii)where the taxpayer was entitled to a rebate of a particular

kind under section 159J, 159K or 159L of the amended Act in the

taxpayer's assessment in respect of income of the preceding year

of income - the amount that would have been the amount of that

rebate if increases in the amounts of rebates provided for by the

amendments of sections 159J, 159K and 159L of the amended Act

made by the Taxation Laws Amendment (Rates and Rebates) Act

1989 had been in force and had applied to assessments in respect

of the preceding year of income; and

(xiii)where the taxpayer was entitled to a credit under section

160AF of the amended Act in the taxpayer's assessment in respect

of income of the preceding year of income - the amount of that

credit increased by 10%; and

(xiv) where the taxpayer was entitled to a rebate under section

160AQU, 160AQX, 160AQY, 160AQYA or 160AQZ of the amended Act

in the taxpayer's assessment in respect of the income of the

preceding year of income - the amount of that rebate multiplied by

429;

--- and

490

(b) if paragraph 221YC (1) (b) of the amended Act applies to the

taxpayer - the amount of provisional tax payable by the taxpayer

in respect of the 1989-90 year of income by virtue of that

paragraph is:

(i) in a case where:

(A) paragraph 221YC (1) (a) of the amended Act would apply to

the taxpayer in relation to the 1989-90 year of income but for

subsection 221YA (5) of the amended Act; and

(B) the taxpayer is a taxpayer to whom paragraph 221YA (5) (a)

of the amended Act applies, but paragraph 221YA (5) (b) of the

amended Act does not apply, in relation to the 1989-90 year of

income;

the amount that would be payable by the taxpayer under paragraph 221YC (1)

(a) of the amended Act (as affected by paragraph (a) of this subsection) if

subsection 221YA (5) of the amended Act were not included in that Act and

Division 16C of Part III of the amended Act were not applicable in relation

to the preceding year of income; and

(ii) in a case where:

(A) paragraph 221YC (1) (a) of the amended Act would apply to

the taxpayer in relation to the 1989-90 year of income but for

subsection 221YA (5) of the amended Act; and

(B) the taxpayer is a taxpayer to whom paragraph 221YA (5) (b)

of the amended Act applies, but paragraph 221YA (5) (a) of the

amended Act does not apply, in relation to the 1989-90 year of

income;

the amount that would be payable by the taxpayer under paragraph 221YC (1)

(a) of the amended Act (as affected by paragraph (a) of this subsection) if

subsection 221YA (5) of the amended Act were not included in that Act and the

taxable income of the taxpayer of the preceding year of income had been

increased by the sum of the deductions allowed or allowable to the taxpayer

under sections 77F, 124ZAF and 124ZAFA of the amended Act in the taxpayer's

assessment in respect of the preceding year of income; and

(iii) in a case where:

(A) paragraph 221YC (1) (a) of the amended Act would apply to

the taxpayer in relation to the 1989-90 year of income but for

subsection 221YA (5) of the amended Act; and

(B) the taxpayer is a taxpayer to whom paragraphs 221YA (5) (a)

and (b) of the amended Act apply in relation to the 1989-90 year

of income;

the amount that would be payable by the taxpayer under paragraph 221YC (1)

(a) of the amended Act (as affected by paragraph (a) of this subsection) if:

in that Act; and

(D) Division 16C of Part III of the amended Act were not

applicable in relation to the preceding year of income; and

(E) the amount that, but for this sub-subparagraph, would have

been the taxable income of the taxpayer of the preceding year of

income had been increased by the sum of the deductions allowed

or allowable to the taxpayer under sections 77F, 124ZAF and

124ZAFA of the amended Act in the taxpayer's assessment in

respect of the preceding year of income; and

(iv) in any other case - the amount that would be payable by the

taxpayer under paragraph (a) of this subsection if the provisions

of that paragraph applied to the taxpayer in relation to the

taxpayer's income of the 1989-90 year of income and:

(A) the taxable income of the taxpayer of the preceding year of

income had been equal to the amount that the Commissioner

estimates would have been the provisional income of the taxpayer

if Division 16C of Part III of the amended Act were not applicable

in relation to the preceding year of income increased by the sum

of the deductions (if any) allowed or allowable to the taxpayer

under sections 77F, 124ZAF and 124ZAFA of the amended Act in the

taxpayer's assessment in respect of the preceding year of income;

and

(B) for the purposes of Division 16 of Part III of the amended

Act, the deemed taxable income from primary production of the

taxpayer of the preceding year of income were such amount (if

any) as the Commissioner determines; and

Act, the amount of the eligible taxable income of the taxpayer of

the preceding year of income were such amount (if any) as the

Commissioner determines; and

(D) for the purposes of Division 16a of Part III of the amended

Act, the amount of the eligible taxable income of the taxpayer of

the preceding year of income were such amount (if any) as the

Commissioner determines.

(4) A reference in this section to the amount of provisional tax payable by

a taxpayer includes a reference to the amount that, but for subsection 221YBA

(5) of the amended Act, would be the provisional tax payable by the taxpayer.

PART 5 - AMENDMENT OF THE SALES TAX (EXEMPTIONS AND CLASSIFICATIONS)

ACT 1935

TAXATION LAWS AMENDMENT (No. 3) 1990 No. 58 of 1990

- SECT 36

Principal Act

36. In this Part, ''Principal Act'' means the Sales Tax (Exemptions and

Classifications) Act 1935.*4*

*4* No. 60, 1935, as amended. For previous amendments, see No. 41, 1936; No.

78, 1938; No. 32, 1939; Nos. 29 and 76, 1940; No. 32, 1941; No. 6, 1942; Nos.

35 and 44, 1943; No. 31, 1944; No. 36, 1945; Nos. 12 and 67, 1946; No. 65,

1947; No. 42, 1948; No. 54, 1949; No. 37, 1950; No. 42, 1951; No. 44, 1952;

No. 53, 1953; No. 45, 1954; No. 5, 1956; No. 71, 1957; Nos. 17 and 92, 1959;

Nos. 65 and 88, 1960; Nos. 1 and 76, 1961; No. 4, 1962; No. 44, 1963; No. 30,

1965; Nos. 26 and 62, 1966; No. 78, 1970; Nos. 67 and 87, 1972; Nos. 17, 181

and 216, 1973; No. 24, 1975; Nos. 21, 29, 80 and 175, 1976; No. 107, 1978;

Nos. 3, 94 and 157, 1979; No. 142, 1981; Nos. 64, 93 and 115, 1982; Nos. 63,

84 and 136, 1983; Nos. 81, 123 and 165, 1984; Nos. 65 and 67, 1985; Nos. 28,

76 and 98, 1986; Nos. 42, 135 and 140, 1987; Nos. 78, 89 and 152, 1988; Nos.

63 and 72, 1989; and No. 18, 1990.

TAXATION LAWS AMENDMENT (No. 3) 1990 No. 58 of 1990

- SECT 37

Amendment of First Schedule

37. The First Schedule to the Principal Act is amended:

(a) by omitting from item 74 "or of a State or of the Northern

Territory" (first and second occurring) and substituting ", a State,

the Northern Territory or the Australian Capital Territory";

(b) by omitting from item 74 "or of the Northern Territory, an

arrangement" and substituting ", the Northern Territory or the

Australian Capital Territory, an arrangement";

of the Northern Territory" and substituting ", the

Administrator-in-Council

of the Northern Territory or the Chief Minister of the

Australian Capital Territory";

(d) by omitting from item 74 "by the State or the Northern

Territory" and substituting "by the State, the Northern Territory

or the Australian Capital Territory";

(e) by omitting from item 74 "or of the Northern Territory"

(second-last and last occurring) and substituting ", the Northern

Territory or the Australian Capital Territory".

TAXATION LAWS AMENDMENT (No. 3) 1990 No. 58 of 1990

- SECT 38

Application of amendments

38. The amendments made by this Part apply in relation to transactions,

acts and operations effected or done in relation to goods after the

commencement of this Part.

Notes to the Taxation Laws Amendment Act (No. 3) 1990

Note 1

The Taxation Laws Amendment Act (No. 3) 1990 as shown in this compilation comprises
Act No. 58, 1990 amended as indicated in the Tables below.

Table of Acts

Act	Number and year	Date of Assent	Date of commencement	Application, saving or transitional provisions
Taxation Laws Amendment Act (No. 3) 1990	58, 1990	16 June 1990	See s. 2
Tax Laws Amendment (2010 Measures No. 2) Act 2010	75, 2010	28 June 2010	Schedule 6 (item 58): 29 June 2010	—

Table of Amendments

ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted
Provision affected	How affected
S. 35...................	rep. No. 75, 2010