Federal Register of Legislation - Australian Government

Primary content

Taxation Laws Amendment Act (No. 2) 1987

Authoritative Version
Act No. 62 of 1987 as made
An Act to amend the law relating to taxation
Administered by: Treasury
Date of Assent 05 Jun 1987
Date of repeal 10 Dec 2015
Repealed by Amending Acts 1980 to 1989 Repeal Act 2015

1.jpg

Taxation Laws Amendment Act (No. 2) 1987

No. 62 of 1987

TABLE OF PROVISIONS

PART I—PRELIMINARY

Section

1.      Short title

2.      Commencement

PART II—AMENDMENT OF THE AUSTRALIAN CAPITAL TERRITORY TAXATION (ADMINISTRATION) ACT 1969

3.      Principal Act

4.      Interpretation

PART III—AMENDMENT OF THE AUSTRALIAN CAPITAL TERRITORY TAX (INSURANCE BUSINESS) ACT 1969

5.      Principal Act

6.      Exemptions

7.      Application

PART IV—AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

8.      Principal Act

9.      Dividends

10.    Rebate on dividends

11.    Rebate on dividends paid as part of dividend stripping operation

12.    Distributions by liquidator

13.    Domestic losses of previous years

14.    Interpretation


TABLE OF PROVISIONS—continued

Section

15. Insertion of new sections:

82kta.       Holding of car

82ktb.       Holding period of car

82ktc.       Deemed specification of matters in taxpayer’s return

82ktd.       Deemed specification of matters in odometer records

82kte.       Unsigned or fraudulent entries in log book records

82ktf.        Reasonable estimate of underlying business percentage

82ktg.       Log book year of income

82kth.       Business percentage established during applicable log book period

82ktj.        Replacement cars

82ktk.       Re-acquisition etc. of cars

16.    Documentary evidence

17.    Insertion of new sections:

82kua.     Deductions not allowable for car expenses unless documentary evidence obtained etc.

82kub.      Deductions not allowable for car expenses incurred in a log book year of income unless log book records and odometer records etc. are maintained

82kuc.      Deductions not allowable for car expenses incurred in a non-log book year of income unless log book records kept in previous log book year of income etc.

82kud.     Amount of deduction allowable for car expenses—log book method

82kue.      Nominated business percentage to be reduced if it exceeds business percentage established during applicable log book period or if it is unreasonable

18.    Car expenses—exemptions from log book method substantiation

19.    Deduction for car expenses where income-producing use exceeds 5,000 kilometres— statutory formula

20.    Deduction for car expenses where income-producing use does not exceed 5,000 kilometres—statutory formula

21.    Elections

22.    Retention, and production, of documents

23.    Modified application of Act in relation to certain unit trusts

24.    Modified application of Act in relation to certain unit trusts

25.    Interpretation

26.    Additional tax on undistributed amount

27.    Insertion of new section:

105.           Phasing-out dividends

28.    Sufficient distribution

29.    Retention allowance

30.    Premiums not assessable income

31.    Repeal of section 116aa

32.    Interpretation

33.    Provisional certificates

34.    Determination of content of film

35.    Liability to withholding tax

36.    Interpretation

37.    Receipt of franked dividends

38.    Receipt of franked dividends through trusts and partnerships

39.    Under-franking

40.    Insertion of new section:

160apxa. Excessive reduction in section 160apx debit

41.    Insertion of new section:

160aqca. Transfer of asset to insurance funds

42.    What constitutes franking

43.    Insertion of new Division:

Division 7a—Application of Part in relation to Trusts that are Treated as Companies

Subdivision A—General Modifications

160arda.   General application of Part in relation to corporate trust estates

160ardb.   Company tax to include tax payable by current corporate trust

160ardc.   Certain corporate trust dividends to be treated as frankable dividends


TABLE OF PROVISIONS—continued

Section

Subdivision B—Modification of Rules Regarding Franking Credits and Franking Debits

160ardd.      Residence requirement for credit or debit to arise

160arde.      Franking credit where franked dividends received

160ardf.      Franking credit where franked dividends received through trusts and partnerships

Subdivision C—Franking of Corporate Trust Dividends

160ardg.      Residence requirement for franking

160ardh.      Residence requirement for franking deficit tax to offset tax payable by trustee

Subdivision D—Miscellaneous

160ardj.       No extra amount assessable under section 160aqt to trustee of corporate trust estate

160ardk.      No rebate under section 160aqx or 160aqz to trustee of current corporate trust

160ardl.      Adjustments for section 160aqt amounts

44.    Provisional tax on estimated income

45.    Additional tax where income underestimated

46.    Insertion of new section:

223a.             Penalty tax for over-estimating business percentage applicable to car held by taxpayer

47.    Application and transitional provisions

48.    Amendment of assessments

PART V—AMENDMENT OF THE PAY-ROLL TAX (TERRITORIES) ASSESSMENT ACT 1971

49.    Principal Act

50.    Interpretation

51.    Exemption from tax

52.    Deferral of refund of overpaid tax etc.

53.    Application

PART VI—AMENDMENT OF THE TAXATION ADMINISTRATION ACT 1953

54.    Principal Act

55.    Acting appointments

PART VII—AMENDMENT OF CERTAIN ACTS RELATING TO BANK ACCOUNT DEBITS TAX

56.    Amendment of Acts

57.    Application of amendments

PART VIII—AMENDMENT OF CERTAIN ACTS IN CONNECTION WITH THE TRANSFER OF CERTAIN AUSTRALIAN CAPITAL TERRITORY TAXES AND DUTIES

58.    Objects of Part

59.    Amendment of Acts

60.    Amendment of Acts

61.    Transitional provisions relating to annual reports

PART IX—AMENDMENT OF CERTAIN ACTS RELATING TO THE COMMISSIONER’S INFORMATION GATHERING AND ACCESS POWERS

62.    Amendment of Acts


TABLE OF PROVISIONS—continued

SCHEDULE 1

AMENDMENTS OF CERTAIN ACTS RELATING TO BANK ACCOUNT DEBITS TAX

SCHEDULE 2

AMENDMENT OF CERTAIN ACTS IN CONNECTION WITH THE TRANSFER OF CERTAIN AUSTRALIAN CAPITAL TERRITORY TAXES AND DUTIES

SCHEDULE 3

AMENDMENT OF CERTAIN ACTS IN CONNECTION WITH THE TRANSFER OF AUSTRALIAN CAPITAL TERRITORY PAY-ROLL TAX

SCHEDULE 4

AMENDMENTS RELATING TO THE COMMISSIONER’S INFORMATION GATHERING AND ACCESS POWERS


1.jpg

Taxation Laws Amendment Act (No. 2) 1987

No. 62 of 1987

 

An Act to amend the law relating to taxation

[Assented to 5 June 1987]

BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:

 

PART I—PRELIMINARY

Short title

1. This Act may be cited as the Taxation Laws Amendment Act (No. 2) 1987.

Commencement

2. (1) Subject to this section, this Act shall come into operation on the day on which it receives the Royal Assent.

(2) Parts II and III shall be deemed to have come into operation on 1 January 1987.


(3) If the Taxation Laws Amendment Act 1987 has not commenced before the day on which this Act receives the Royal Assent, section 45 of this Act shall come into operation on the date of commencement of that Act.

(4) Sections 36 to 43 (inclusive) shall come into operation, or be deemed to have come into operation, immediately after the commencement of section 1 of the Taxation Laws Amendment (Company Distributions) Act 1987.

(5) Part V shall be deemed to have come into operation on 1 July 1986.

(6) Subject to subsection (7), Part VII shall come into operation on the commencement of Part VIII of the Cheques and Payment Orders Act 1986.

(7) Subsection 57 (1) and the amendments of the Bank Account Debits Tax Administration Act 1982 made by Part VII inserting the definition of “account transaction” in subsection 3 (1) of that Act and inserting sections 3a and 3b in that Act shall be deemed to have come into operation on 6 May 1987.

(8) Part VIII shall come into operation on a day, or respective days, to be fixed by Proclamation.

 

PART II—AMENDMENT OF THE AUSTRALIAN CAPITAL TERRITORY TAXATION (ADMINISTRATION) ACT 1969

Principal Act

3. The Australian Capital Territory Taxation (Administration) Act 19691 is in this Part referred to as the Principal Act.

Interpretation

4. Section 4 of the Principal Act is amended by inserting in subsection (1) the following definitions in their respective appropriate alphabetical positions (determined on a letter-by-letter basis):

“ ‘aircraft’ means a machine or apparatus that can derive support in the atmosphere from the reactions of the air or from buoyancy, but does not include an air-cushion vehicle;

‘international trade insurance’ means:

(a) insurance of freight against loss or damage in the course of, or incidental to, international transport of the freight;

(b) insurance of an aircraft or ship against loss or damage during a particular period when the aircraft or ship is under construction or undergoing refitting, maintenance or repairs where, at the time the insurance was effected, the aircraft or ship was intended by the owner to be used wholly or principally for the international transport of freight for an


 

indefinitely continuing period commencing immediately after the completion of the construction, refitting, maintenance or repairs, as the case may be;

(c) insurance of an aircraft or ship against loss or damage in the course of, or incidental to, a particular journey or journeys where, at the time the insurance was effected, it was intended by the owner that the journey or journeys would be wholly or principally for the international transport of freight; or

(d) insurance of an aircraft or ship against loss or damage during a particular period where, at the time the insurance was effected, the aircraft or ship was intended by the owner to be used during that period wholly or principally for the international transport of freight;

‘international transport’, in relation to freight, means the transport in, or in connection with, trade or commerce, of the freight between:

(a) a place in a foreign country; and

(b) a place in:

(i) another foreign country;

(ii) Australia; or

(iii) an external Territory;

‘ship’ means a vessel or boat of any description, and includes:

(a) an air-cushion vehicle; and

(b) a floating structure;”.

 

PART III—AMENDMENT OF THE AUSTRALIAN CAPITAL TERRITORY TAX (INSURANCE BUSINESS) ACT 1969

Principal Act

5. The Australian Capital Territory Tax (Insurance Business) Act 19692 is in this Part referred to as the Principal Act.

Exemptions

6. Section 6 of the Principal Act is amended by inserting after paragraph (a) the following paragraph:

“(b) international trade insurance;”.

Application

7. The amendment made by this Part applies in relation to the premiums received by an insurer in respect of insurance effected by the insurer on or after the date of commencement of this section.


PART IV—AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

Principal Act

8. The Income Tax Assessment Act 19363 is in this Part referred to as the Principal Act.

Dividends

9. Section 44 of the Principal Act is amended by omitting subsections (2) and (2d).

Rebate on dividends

10. Section 46 of the Principal Act is amended:

(a) by inserting after subsection (1) the following subsection:

“(1aa) The dividends that:

(a) are paid to a shareholder in the year of income commencing on 1 July 1986 or a subsequent year of income; and

(b) apart from this subsection, would be private company dividends;

shall be taken for the purposes of this section to be private company dividends only to the extent of the amount of phasing-out dividends included in the distributable income of the shareholder of the year of income concerned for the purposes of Division 7.”;

(b) by omitting subsection (7) and substituting the following subsection:

“(7) For the purposes of subsections (2) and (3), the part of any dividends that is included in the taxable income of a shareholder of the year of income is:

(a) if the taxable income is equal to or less than the amount of the dividends included in the assessable income of the shareholder of the year of income—the whole of the taxable income; or

(b) in any other case—so much of the taxable income as equals the amount (if any) of the dividends included in the assessable income of the shareholder of the year of income.”; and

(c) by omitting subsection (9).

Rebate on dividends paid as part of dividend stripping operation

11. Section 46a of the Principal Act is amended by inserting after subsection (1) the following subsection:

“(1a) The dividends that:

(a) are paid to a shareholder in the year of income commencing on 1 July 1986 or a subsequent year of income; and

(b) apart from this subsection, would be private company dividends;

shall be taken for the purposes of this section to be private company dividends only to the extent of the amount of phasing-out dividends included


in the distributable income of the shareholder of the year of income concerned for the purposes of Division 7.”.

Distributions by liquidator

12. Section 47 of the Principal Act is amended by omitting from subsection (3) “does not include the paid-up value of shares which have been issued by the company in satisfaction of dividends which have been paid out of profits arising from the revaluation of assets not acquired for the purposes of re-sale at a profit but”.

Domestic losses of previous years

13. Section 80 of the Principal Act is amended by omitting subsection (3a).

Interpretation

14. Section 82kt of the Principal Act is amended:

(a) by omitting from subsection (1) the definition of “retention period” and substituting the following definition:

“‘retention period’, in relation to an expense incurred by a taxpayer during a year of income, means the period that:

(a) commences on:

(i) in the case of a car expense:

(a) that is in respect of fuel or oil and that was incurred when the car concerned was owned or leased by the taxpayer at a time during the year of income; and

(b) where documentary evidence of the expense was not obtained by or on behalf of the taxpayer;

whichever of the following times is applicable:

(c) if the taxpayer elects that subsection 82kw (2) apply in relation to the car in relation to the year of income—the commencement of the holding period within the meaning of that subsection or, if the first use of the car in the course of producing assessable income of the taxpayer occurred during that holding period, the commencement of that use;

(d) in any other case—the commencement of the holding period within the meaning of section 82kua or, if the first use of the car in the course of producing assessable income of the taxpayer


occurred during that holding period, the commencement of that use; or

(ii) in any other case—the day on which documentary evidence of the expense was obtained by or on behalf of the taxpayer; and

(b) ends:

(i) in a case to which subparagraph (ii) does not apply—at the end of the period of:

(A) if the expense is a car expense and, at any time during the year of income, the car to which the expense relates is used in the course of producing assessable income of the taxpayer, not being salary or wages—7 years;

(B) if the expense is a travel expense and, while undertaking the travel to which the expense relates, the taxpayer engages in an activity in the course of producing assessable income of the taxpayer, not being salary or wages—7 years; or

(C) in any other case—3 years and 6 months;

that commences on the day on which the taxpayer lodges a return of income of the taxpayer of the year of income; or

(ii) if, at the end of that period of 7 years, or 3 years and 6 months, as the case may be, an objection, or a request for amendment of an assessment (not being an objection), relating to the expense or to matters including the expense, or a review or appeal arising out of such an objection, has not been determined or otherwise finally disposed of—on the day on which the objection (and any review or appeal arising out of it), the request, or the review or appeal (and any appeal or further appeal arising out of it), as the case may be, has or have been determined or so disposed of;”;

(b) by omitting from subsection (1) the definition of “relevant car documents”;

(c) by inserting in subsection (1) the following definitions in their respective appropriate alphabetical positions (determined on a letter-by-letter basis):

“ ‘applicable log book period’, in relation to a car held by a taxpayer during a period (in this definition called the ‘holding period’) in a year of income, means:


 

(a) if the holding period is a period of less than 12 weeks—the holding period;

(b) if the holding period is a period of not less than 12 weeks and there is a continuous period (in this paragraph called a ‘concurrent holding period’) of not less than 12 weeks in the year of income during which the taxpayer held both:

(i) the car; and

(ii) one or more other log book cars;

a continuous period of not less than 12 weeks that:

(iii) begins and ends:

(A) if there is a continuous period (in this sub-subparagraph called the ‘sole holding period’) of not less than 12 weeks in the year of income during which the taxpayer held the car and no other log book cars (other than rental log book cars) and the sole holding period commenced after the end of the concurrent holding period or, if there are 2 or more concurrent holding periods, the last of those concurrent holding periods—during the sole holding period; and

(B) in any other case—during the concurrent holding period or, if there are 2 or more concurrent holding periods, during the last of those concurrent holding periods;

(iv) in a case to which sub-subparagraph (iii) (b) applies—is the same as the applicable log book period for the other log book car, or each of the other log book cars, so held during the concurrent holding period concerned; and

(v) in all cases—is specified by the taxpayer in his or her return for the year of income; or

(c) in any other case—a continuous period of not less than 12 weeks that:

(i) begins and ends during the holding period; and

(ii) is specified by the taxpayer in his or her return for the year of income;

‘exclusive business use deduction’, in relation to a car expense incurred by a taxpayer in a year of income in relation to a car held by the taxpayer during a period (in this definition called the ‘holding period’) in the year of income, means the deduction that, apart from this Subdivision, would have been allowable to the taxpayer under this Act in respect of the car expense if all use of the car by the taxpayer during the


holding period had been exclusively in the course of producing assessable income of the taxpayer;

‘log book car’, in relation to a taxpayer, in relation to a year of income, means a car held by the taxpayer during a period (in this definition called the ‘holding period’) in the year of income where:

(a) the car was used, at any time during the holding period, in the course of producing assessable income of the taxpayer; and

(b) the taxpayer did not elect that subsection 82kw (2) or (3) or 82kx (1) apply in relation to the car in relation to the year of income;

‘log book records’, in relation to a car held by a taxpayer, in relation to a period, means a daily log book or similar document in which, in respect of each journey:

(a) that is undertaken in the car during the period in the course of producing assessable income of the taxpayer; and

(b) that the taxpayer, or a person acting on behalf of the taxpayer, chooses to record in the document for the purposes of demonstrating the pattern of use of the car during the period;

an entry setting out particulars of:

(c) the date on which the journey began and the date on which it ended;

(d) the respective odometer readings of the car at the beginning and end of the journey;

(e) the number of kilometres travelled by the car in the course of the journey;

(f) the purpose or purposes of the journey;

(g) the name of the person, or the names of the persons, driving the car on that journey;

(h) the date on which the entry is made; and

(j) the name of the person by whom the entry is made;

is made in the English language at, or as soon as reasonably practicable after, the end of the journey, and that, in relation to each such entry so made, is signed, at the time when the entry is made, by the person who made the entry;

‘long-term log book car’, in relation to a taxpayer, in relation to a year of income, means a log book car in relation to the taxpayer in relation to the year of income other than:

(a) a rental log book car; or

(b) a car while it is held by the taxpayer pending its replacement, for use in the course of producing assessable income of the taxpayer, by another car;


 

‘low business kilometre car’, in relation to a taxpayer, in relation to a year of income, means a car held by the taxpayer during a period (in this definition called the ‘holding period’) in the year of income where the number calculated in accordance with the formula:

where:

DHP is the number of days in the holding period;

DY is the number of days in the year of income; and

BK is the number of whole kilometres travelled by the car during the holding period in the course of producing assessable income of the taxpayer;

does not exceed 5,000;

‘nominated business percentage’, in relation to a car held by a taxpayer during a period (in this definition called the ‘holding period’) in a year of income, means a percentage that represents an estimate made by the taxpayer of the underlying business percentage applicable to the car in relation to the taxpayer for the holding period, having regard to all relevant matters including, but without limiting the generality of the foregoing:

(a) any log book records, odometer records or other records maintained by or on behalf of the taxpayer; and

(b) any variations in the pattern of use of the car;

‘odometer records’, in relation to a car, in relation to a period, means a document:

(a) in which particulars of:

(i) the odometer reading of the car at the commencement of the period or, if the first use of the car in the course of producing assessable income of the taxpayer occurred during the period, at the commencement of that use;

(ii) the odometer reading of the car at the end of the period or, if the last use of the car in the course of producing assessable income of the taxpayer occurred during the period, at the end of that use;

(iii) if paragraph 82ktj (1) (b) applies with effect from a particular date—the odometer readings of both the replacement car and of the original car referred to in that paragraph, as at that date;


 

(iv) the respective dates on which the entries are made; and

(v) the name of the person, or the names of the respective persons, by whom the entries are made;

are entered in the English language, and that is signed by the person or persons referred to in subparagraph (v), at, or as soon as reasonably practicable after, the respective times to which those odometer readings relate; and

(b) in which particulars of the make, model and, if the car has an internal combustion engine, the engine capacity (expressed in cubic centimetres) of the car or, if paragraph 82ktj (1) (b) applies, of both the replacement car and the original car referred to in that paragraph, are entered in the English language;

‘rental log book car’, in relation to a taxpayer, in relation to a year of income, means a log book car in relation to the taxpayer in relation to the year of income where:

(a) the car is leased to the taxpayer under an agreement of a kind ordinarily entered into by a person taking cars on hire intermittently as occasion requires, on an hourly, daily, weekly or other short-term basis; and

(b) the car has neither been, nor may reasonably be expected to be, on hire under successive agreements of a kind that result in substantial continuity of the hiring of the car;

‘underlying business percentage’, in relation to a car held by a taxpayer during a period (in this definition called the ‘holding period’) in a year of income, means the percentage calculated in accordance with the formula:

where:

BK is the number of whole kilometres travelled by the car during the holding period in the course of producing assessable income of the taxpayer; and

TK is the number of whole kilometres travelled by the car during the holding period.”; and

(d) by inserting in paragraph (6) (b) “section 82kud and” after “other than”.

15. After section 82kt of the Principal Act the following sections are inserted:


 

Holding of car

“82kta. (1) A reference in this Subdivision to a car held by a taxpayer is a reference to a car owned or leased by the taxpayer for use in the course of producing assessable income of the taxpayer (whether or not the car was used for any other purpose while it was so owned or leased).

“(2) A reference in this Subdivision to a period during which a car was held by a taxpayer is a reference to a period during which the car was continuously held by the taxpayer.

Holding period of car

82ktb. Unless the contrary intention appears, a reference in this Subdivision to a period in a year of income during which a taxpayer held a car is a reference to the period that:

(a) commences on whichever of the following times is applicable:

(i) if the taxpayer held the car at the time of commencement of the year of income—that time;

(ii) in any other case—the time in the year of income when the taxpayer commenced to hold the car; and

(b) ends at whichever of the following times is applicable:

(i) if the taxpayer continued to hold the car until the time of the end of the year of income—that time;

(ii) in any other case—the time in the year of income when the taxpayer ceased to hold the car.

Deemed specification of matters in taxpayer’s return

“82ktc. Where:

(a) a taxpayer furnishes a return for a year of income; and

(b) the taxpayer fails, through inadvertence, to specify in the return any or all of the following matters:

(i) a period of a kind mentioned in the definition of ‘applicable log book period’ in subsection 82kt (1);

(ii) a nomination of the kind mentioned in subsection 82ktj (1) or particulars of such a nomination;

(iii) a percentage of a kind mentioned in section 82kub or 82kuc;

the Commissioner may determine that a period, nomination, particular or percentage of that kind specified by the taxpayer in a document lodged with the Commissioner shall be treated, for the purposes of this Subdivision, as if it had been specified by the taxpayer in that return.

Deemed specification of matters in odometer records

“82ktd. Where:

(a) odometer records are purportedly maintained by or on behalf of a taxpayer in relation to a car for a period; and


(b) the taxpayer, or a person acting on behalf of the taxpayer, fails, through inadvertence, to enter, as mentioned in the definition of ‘odometer records’ in subsection 82kt (1), particulars of the make, model and engine capacity of the car or, if paragraph 82ktj (1) (b) applies, of both the original car and the replacement car referred to in that paragraph;

the Commissioner may determine that particulars of that kind specified by the taxpayer in a document lodged with the Commissioner shall be treated, for the purposes of this Subdivision, as if they had been entered in those odometer records.

Unsigned or fraudulent entries in log book records

82kte. For the purposes of this Subdivision, where log book records maintained by or on behalf of a taxpayer for a period in respect of a car held by the taxpayer purport to contain an entry of the kind referred to in the definition of ‘log book records’ in subsection 82kt (1) but:

(a) the entry is not signed as mentioned in that definition; or

(b) the entry is false or misleading in a material particular;

the pattern of use of the car purporting to be shown by the log book records shall be determined as if that entry had not been made.

Reasonable estimate of underlying business percentage

“82ktf. For the purposes of this Subdivision, the percentage that represents a reasonable estimate of the underlying business percentage applicable to a car held by a taxpayer during a period in a year of income shall be determined having regard to all relevant matters including, but without limiting the generality of the foregoing:

(a) any log book records, odometer records or other records maintained by or on behalf of the taxpayer; and

(b) any variations in the pattern of use of the car.

Log book year of income

“82ktg. For the purposes of this Subdivision, a year of income (in this section called the ‘current year of income’) is a log book year of income of a taxpayer in relation to a particular car (in this section called the ‘deductible car’) if, and only if:

(a) the current year of income is the first year of income in which section 82kud is applied for the purpose of determining the amount of the deductions allowable under this Act in respect of car expenses incurred by the taxpayer in relation to the deductible car;

(b) the taxpayer elects that the current year of income be treated as a log book year of income of the taxpayer in relation to the deductible car;

(c) the taxpayer has elected that subsection 82kw (2) or (3) or 82kx (1) apply in relation to the deductible car in relation to the preceding year of income;


(d) both of the following conditions are satisfied:

(i) section 82kud is applied for the purpose of determining the amount of the deductions allowable under this Act in respect of car expenses incurred by the taxpayer in the preceding year of income that relate to one or more cars (but not counting any car that was a rental log book car or any car held at a time in the year of income pending its replacement, for use in the course of producing assessable income of the taxpayer, by another log book car);

(ii) that section is applied for the purpose of determining the deductions allowable under this Act in respect of car expenses incurred by the taxpayer in the current year of income that relate to a number of cars (but not counting any car that was a rental log book car or any car held at a time in the year of income pending its replacement, for use in the course of producing assessable income of the taxpayer, by another log book car) that exceeds the number of cars referred to in subparagraph (i);

(e) both of the following conditions are satisfied:

(i) the taxpayer owned or leased the deductible car during a period in the preceding year of income;

(ii) a deduction was not allowable to the taxpayer:

(A) in respect of a car expense that related to the deductible car and was incurred by the taxpayer in the preceding year of income; or

(B) under subsection 82kw (3) or section 82kx in relation to the deductible car in relation to the preceding year of income;

(f) the preceding year of income was a log book year of income of the taxpayer in relation to the deductible car and either of the following conditions is satisfied:

(i) subparagraph 82kub (a) (i), (ii), (iii) or (iv) applied in relation to the deductible car in relation to the preceding year of income;

(ii) the conditions set out in subparagraphs 82kub (b) (iii) and (iv) or the conditions set out in subparagraphs 82kub (c) (i) and (ii), as the case may be, were not satisfied in relation to the deductible car in relation to the preceding year of income;

(g) the preceding year of income was not a log book year of income of the taxpayer in relation to the deductible car and any of the following conditions is satisfied:

(i) the condition set out in paragraph 82kuc (a) was not satisfied in relation to the deductible car in relation to the preceding year of income;


(ii) the condition set out in sub-subparagraph 82kuc (b) (i) (A) or (B) or subparagraph 82kuc (b) (ii), as the case may be, was not satisfied in relation to the deductible car in relation to the preceding year of income;

(iii) both of the following conditions are satisfied:

(a) the taxpayer specified (otherwise than by virtue of section 82kue), in his or her return for the preceding year of income, a percentage of the kind mentioned in subparagraph 82kuc (b) (iii);

(b) the percentage calculated in accordance with the formula referred to in that subparagraph exceeded 10%; or

(h) the Commissioner causes a notice in writing to be served on the taxpayer before the commencement of the current year of income requiring the taxpayer to treat the current year of income as a log book year of income of the taxpayer in relation to the deductible car.

Business percentage established during applicable log book period

“82kth. A reference in this Subdivision to the business percentage established during an applicable log book period in relation to a car held by a taxpayer during a period (in this section called the ‘holding period’) in a year of income is a reference to the underlying business percentage that would apply to the car in relation to the taxpayer for the holding period if it were assumed that the actual pattern of use of the car throughout the holding period were the same as the pattern of use of the car purporting to be shown by the log book records and odometer records maintained by or on behalf of the taxpayer for the applicable log book period.

Replacement cars

“82ktj. (1) Subject to subsection (3), for the purposes of the application of this Subdivision (other than section 82kw, 82kx or 82ky) to a car expense, where a taxpayer, in his or her return for a year of income, nominates a particular car (in this section called the ‘replacement car’) as having replaced another car (in this section called the ‘original car’) with effect from a specified date in the year of income:

(a) the original car shall be treated, with effect from that date, as a different car; and

(b) the replacement car shall be treated, with effect from that date, as the same car as the original car.

“(2) A nomination shall specify the make, model and registration number (if any) of the original car and of the replacement car.

“(3) Subsection (1) does not apply for the purposes of determining the deduction that, apart from this Subdivision, would have been allowable under this Act in respect of a car expense.


“(4) For the purposes of this Subdivision:

(a) a car is a predecessor of a second car if the second car replaced the first-mentioned car for use in the course of producing assessable income of the taxpayer concerned; and

(b) a car is a predecessor of a second car if a third car is a predecessor of the second car and the first-mentioned car is a predecessor of the third car (including a case where the first-mentioned car is a predecessor of the third car by another application or applications of this paragraph).

“(5) For the purposes of this Subdivision, a car shall not be treated as a car held by a taxpayer pending its replacement, for use in the course of producing assessable income of the taxpayer, by another car unless both cars are held at the same time.

“(6) For the purposes of subparagraphs 82kub (a) (ii) and (iii) and (b) (i) and (ii), where:

(a) at a particular time, a taxpayer ceases to hold a particular car (in this subsection called the ‘original car’); and

(b) after that time, the taxpayer commences to hold another car as a replacement, for use in the course of producing assessable income of the taxpayer, for the original car;

the taxpayer shall be treated as having held the original car until that later time.

Re-acquisition etc. of cars

“82kyk. (1) Subject to subsection (2) of this section and to section 82ktj, for the purposes of the application of this Subdivision (other than section 82kw, 82kx or 82ky) to a car expense, where:

(a) a taxpayer holds a car during a period (in this subsection called the ‘current period’); and

(b) the taxpayer held the car during a period that ended, or during 2 or more periods each of which ended, before the commencement of the current period;

the car shall be treated as a different car in each of the periods referred to in this subsection.

“(2) Subsection (1) does not apply for the purposes of determining the deduction that, apart from this Subdivision would have been allowable under this Act in respect of a car expense.”.

Documentary evidence

16. Section 82ku of the Principal Act is amended by omitting from subsection (10) “paragraph 82kv (1) (a) or 82kw (2) (b)” and substituting “paragraph 82kua (b) or 82kw (2) (ba)”.

17. After section 82ku of the Principal Act the following sections are inserted:


Deductions not allowable for car expenses unless documentary evidence obtained etc.

“82kua. Subject to this Subdivision, where a car is held by a taxpayer during a period (in this section called the ‘holding period’) in a year of income, a deduction is not allowable under this Act in respect of a car expense incurred by the taxpayer in the year of income in relation to the car unless:

(a) if the car expense is in respect of fuel or oil:

(i) odometer records are maintained by or on behalf of the taxpayer for the holding period; or

(ii) documentary evidence of the expense is obtained by or on behalf of the taxpayer; or

(b) if the car expense is not in respect of fuel or oil—documentary evidence of the expense is obtained by or on behalf of the taxpayer.

Deductions not allowable for car expenses incurred in a log book year of income unless log book records and odometer records etc. are maintained

“82kub. Subject to this Subdivision, where a car (in this section called the ‘deductible car’) is held by a taxpayer during a period (in this section called the ‘holding period’) in a year of income (in this section called the ‘current year of income’) that is a log book year of income of the taxpayer in relation to the deductible car, a deduction is not allowable under this Act in respect of a car expense incurred by the taxpayer in the current year of income in relation to the deductible car unless:

(a) if the deductible car is not a rental log book car and any of the following subparagraphs applies:

(i) the taxpayer commenced to hold the deductible car during the last 12 weeks of the current year of income;

(ii) all of the following sub-subparagraphs apply:

(a) on the last day (in this subparagraph called the ‘last holding day’) in the current year of income when the taxpayer held the deductible car (otherwise than pending its replacement, for use in the course of producing assessable income of the taxpayer, by another log book car), the taxpayer held no other cars that were long-term log book cars;

(b) there was an earlier day in the current year of income when the taxpayer held both the deductible car (or its predecessor) and one or more other cars that were long-term log book cars;

(c) the period in the current year of income, being the period that ended on the last holding day and that consisted of a number of consecutive days, where, on each of those days, the taxpayer held the deductible car (or its predecessor) and no other car that was a long-term log book car, is less than 12 weeks;


(d) it would be concluded that the taxpayer did not commence, or cease, to hold any car for the sole or dominant purpose of ensuring that the maintenance of log book records or odometer records, or of log book records and odometer records, would not be required as a condition of a deduction being allowable under this Act in respect of a car expense incurred in relation to the deductible car, or in relation to the deductible car and one or more other log book cars;

(iii) all of the following sub-subparagraphs apply:

(a) on the last day (in this subparagraph called the ‘last holding day’) in the current year of income when the taxpayer held the deductible car (otherwise than pending its replacement, for use in the course of producing assessable income of the taxpayer, by another log book car), the taxpayer held one or more other cars that were long-term log book cars;

(b) there was an earlier day in the current year of income when the taxpayer held one or more long-term log book cars that did not wholly consist of the deductible car (or its predecessor) and that other car (or its predecessor) or those other cars (or their predecessors), as the case may be;

(c) the period in the current year of income, being the period that ended on the last holding day and that consists of a number of consecutive days where, on each of those days, the taxpayer held the deductible car (or its predecessor) and that other car (or its predecessor) or those other cars (or their predecessors), as the case may be, is less than 12 weeks;

(d) it would be concluded that the taxpayer did not commence, or cease, to hold any car for the sole or dominant purpose of ensuring that the maintenance of log book records or odometer records, or of log book records and odometer records, would not be required as a condition of a deduction being allowable under this Act in respect of a car expense incurred in relation to the deductible car, or in relation to the deductible car and one or more other log book cars;

(iv) the Commissioner is satisfied, having regard to the taxpayer’s circumstances, that it would be unreasonable to expect log books and odometer records in relation to the deductible car to have been maintained by or on behalf of the taxpayer for an applicable log book period in relation to the deductible car;

the taxpayer, in his or her return for the current year of income, specifies a percentage as the nominated business percentage applicable


to the deductible car in relation to the taxpayer for the holding period;

(b) if paragraph (a) does not apply, the deductible car is not a rental log book car and either of the following subparagraphs applies:

(i) all of the following sub-subparagraphs apply:

(a) on the last day (in this subparagraph called the ‘last holding day’) in the current year of income when the taxpayer held the deductible car (otherwise than pending its replacement, for use in the course of producing assessable income of the taxpayer, by another log book car), the taxpayer held no other cars that were long-term log book cars;

(b) there was an earlier day in the current year of income when the taxpayer held both the deductible car (or its predecessor) and one or more other cars that were long-term log book cars;

(c) the period in the current year of income, being the period that ended on the last holding day and that consisted of a number of consecutive days, where, on each of those days, the taxpayer held the deductible car (or its predecessor) and no other car that was a long-term log book car, is not less than 12 weeks;

(d) it would be concluded that the taxpayer did not commence, or cease, to hold any car for the sole or dominant purpose of ensuring that the taxpayer could, in his or her return for a subsequent year of income, specify a percentage as the nominated business percentage applicable to the deductible car or specify percentages as the nominated business percentages respectively applicable to the deductible car and one or more other log book cars, without being limited to the business percentage established during the applicable log book period for the current year of income;

(ii) all of the following sub-subparagraphs apply:

(a) on the last day (in this subparagraph called the ‘last holding day’) in the current year of income when the taxpayer held the deductible car (otherwise than pending its replacement, for use in the course of producing assessable income of the taxpayer, by another log book car), the taxpayer held one or more other cars that were long-term log book cars;

(b) there was an earlier day in the current year of income when the taxpayer held one or more long-term log book cars that did not wholly consist of the deductible car (or its predecessor) and that other car (or its


 

predecessor) or those other cars (or their predecessors), as the case may be;

(c) the period in the current year of income, being the period that ended on the last holding day and that consists of a number of consecutive days where, on each of those days, the taxpayer held the deductible car (or its predecessor) and that other car (or their predecessors) or those other cars (or their predecessors), as the case may be, is not less than 12 weeks;

(d) it would be concluded that the taxpayer did not commence, or cease, to hold any car for the sole or dominant purpose of ensuring that the taxpayer could, in his or her return for a subsequent year of income, specify a percentage as the nominated business percentage applicable to the deductible car or specify percentages as the nominated business percentages respectively applicable to the deductible car and one or more other log book cars, without being limited to the business percentage established during the applicable log book period for the current year of income;

both of the following conditions are satisfied:

(iii) log book records and odometer records are maintained by or on behalf of the taxpayer for the applicable log book period in relation to the deductible car;

(iv) the taxpayer, in his or her return for the current year of income, specifies a percentage as the nominated business percentage applicable to the deductible car in relation to the taxpayer for the holding period; or

(c) in any other case—both of the following conditions are satisfied:

(i) log book records and odometer records are maintained by or on behalf of the taxpayer for the applicable log book period in relation to the deductible car; and

(ii) the taxpayer, in his or her return for the current year of income, specifies a percentage as the nominated business percentage applicable to the deductible car in relation to the taxpayer for the holding period, not being a percentage that exceeds the business percentage established during the applicable log book period.

Deductions not allowable for car expenses incurred in a non-log book year of income unless log book records kept in previous log book year of income etc.

“82kuc. Subject to this Subdivision, where a car is held by a taxpayer during a period (in this section called the ‘holding period’) in a year of income (in this section called the ‘current year of income’) that is not a log


book year of income of the taxpayer in relation to the car, a deduction is not allowable under this Act in respect of a car expense incurred by the taxpayer in the current year of income in relation to the car unless:

(a) odometer records are maintained by or on behalf of the taxpayer in relation to the car for the holding period; and

(b) the taxpayer, in his or her return for the current year of income, specifies whichever of the following percentages is applicable:

(i) if paragraph 82kub (b) applied in relation to the car in relation to the taxpayer in relation to the year of income that was the last log book year of income of the taxpayer in relation to the car:

(a) if the current year of income is the year of income next following that last log book year of income—a percentage as the nominated business percentage applicable to the car in relation to the taxpayer for the holding period, not being a percentage that exceeds the business percentage established during the applicable log book period for that last log book year of income; or

(b) in any other case—the percentage that was the nominated business percentage applicable to the car in relation to the taxpayer for the period that was the holding period in the year of income next following that last log book year of income and specified in the taxpayer’s return for that next following year of income;

(ii) if subparagraph (i) does not apply—the percentage that was:

(a) the nominated business percentage applicable to the car in relation to the taxpayer for the period that was the holding period in the year of income that was the last log book year of income of the taxpayer in relation to the car; and

(b) specified in the taxpayer’s return for that last log book year of income; or

(iii) if the percentage referred to in sub-subparagraph (i) (b) or subparagraph (ii) would, apart from this subparagraph, be applicable but the taxpayer is of the opinion that the percentage calculated in accordance with the formula:

N—U

where:

N is the percentage referred to in sub-subparagraph (i) (b) or subparagraph (ii), as the case may be; and

U is the percentage that represents a reasonable estimate of the underlying business percentage applicable to the car in relation to the taxpayer for the holding period;


 

is a percentage that:

(a) if the car is a low business kilometre car of the taxpayer in relation to the year of income—exceeds nil; or

(b) in any other case—exceeds 10%;

a percentage as the nominated business percentage applicable to the car in relation to the taxpayer for the holding period.

Amount of deduction allowable for car expenses—log book method

“82kud. Subject to this Subdivision, the amount of a deduction allowable under this Act to a taxpayer in respect of a car expense relating to a car incurred by the taxpayer in a year of income where the car was held by the taxpayer during a period (in this section called the ‘holding period’) in the year of income is:

(a) if the percentage calculated in accordance with the formula:

N—U

where:

N is the percentage applicable to the car specified in the taxpayer’s return for the year of income as mentioned in section 82kub or 82kuc; and

U is the percentage (in this paragraph called the ‘reasonable percentage’) that represents a reasonable estimate of the underlying business percentage applicable to the car in relation to the taxpayer for the holding period;

is a percentage that:

(i) if either of the following sub-subparagraphs apply:

(a) the year of income is a log book year of income of the taxpayer in relation to the car;

(b) the year of income is not a log book year of income of the taxpayer in relation to the car and the car is a low business kilometre car of the taxpayer in relation to the year of income;

exceeds nil; or

(ii) in any other case—exceeds 10%;

the reasonable percentage of the amount of the exclusive business use deduction in respect of the car expense; or

(b) in any other case—the percentage applicable to the car specified in the taxpayer’s return for the year of income, as mentioned in section 82kub or 82kuc, of the amount of the exclusive business use deduction in respect of the car expense.


Nominated business percentage to be reduced if it exceeds business percentage established during applicable log book period or if it is unreasonable

“82kue. (1) For the purposes of this Subdivision, where:

(a) a taxpayer, in his or her return for a year of income, specifies, or purports to specify, a percentage (in this subsection called the ‘excessive percentage’) of the kind mentioned in subparagraph 82kub (c) (ii) or sub-subparagraph 82kuc (b) (i) (a) in respect of a car held by the taxpayer during a period (in this subsection called the ‘holding period’) in the year of income; and

(b) the excessive percentage exceeds the percentage (in this subsection called the ‘reduced percentage’) that is the lesser of the following percentages:

(i) the business percentage applicable to the car that was established during the applicable log book period referred to in subparagraph 82kub (c) (ii) or sub-subparagraph 82kuc (b) (i) (a), as the case may be;

(ii) the percentage that represents a reasonable estimate of the underlying business percentage applicable to the car in relation to the taxpayer for the holding period;

the following provisions have effect:

(c) the taxpayer shall be treated as if he or she had, in the return, specified, in respect of the car, the reduced percentage instead of the excessive percentage;

(d) if the taxpayer, in his or her return for a subsequent year of income, specifies, or purports to specify, in respect of the car, the excessive percentage in accordance with the condition set out in sub-subparagraph 82kuc (b) (i) (b) or subparagraph 82kuc (b) (ii)— the taxpayer shall be treated as if he or she had, in the return for that subsequent year of income, specified, in respect of the car, the reduced percentage instead of the excessive percentage.

“(2) For the purposes of this Subdivision, where:

(a) subparagraph 82kuc (b) (iii) applies in relation to a car held by a taxpayer during a period (in this subsection called the ‘holding period’) in a year of income; and

(b) apart from this subsection, the taxpayer fails to specify, in his or her return for the year of income, a percentage as the nominated business percentage applicable to the car in relation to the taxpayer for the holding period;

the taxpayer shall be treated as if he or she had, in the return, specified, in respect of the car, as that nominated business percentage, the percentage that represents a reasonable estimate of the underlying business percentage applicable to the car in relation to the taxpayer for the holding period.”.


Car expenses—exemptions from log book method substantiation

18. Section 82kv of the Principal Act is amended:

(a) by omitting subsections (1) and (2);

(b) by omitting from subsection (3) “Subsections (1) and (2)”, and substituting “Sections 82kua, 82kub, 82kuc and 82kud”;

(c) by inserting after paragraph (3) (a) the following paragraph:

“(aa) both of the following conditions are satisfied:

(i) at all times during the year of income when the car was held by the taxpayer, the car was unregistered;

(ii) during the period in the year of income when the car was held by the taxpayer, the car was exclusively or principally used in the course of producing assessable income of the taxpayer;”; and

(d) by adding at the end the following subsection:

“(6) For the purposes of this section, a car shall be taken to be registered in a particular place if it may be driven on a public road in that place without contravening the law in force in that place.”.

Deduction for car expenses where income-producing use exceeds 5,000 kilometres—statutory formula

19. Section 82kw of the Principal Act is amended:

(a) by inserting in subsection (1) “(in this section called the ‘holding period’)” after “during a period”;

(b) by omitting from paragraph (2) (a) “paragraph (b)” and substituting “paragraphs (b) and (ba)”;

(c) by omitting paragraph (2) (b) and substituting the following paragraphs:

“(b) a deduction is not so allowable in respect of such an expense, being an expense in respect of fuel or oil, unless:

(i) odometer records are maintained by or on behalf of the taxpayer for the holding period; or

(ii) documentary evidence of the expense is obtained by or on behalf of the taxpayer;

(ba) a deduction is not so allowable in respect of any other such expense unless documentary evidence of the expense is obtained by or on behalf of the taxpayer; and”;

(d) by omitting from paragraph (2) (c) “section 82kv” and substituting “sections 82kua, 82kub, 82kuc and 82kud”;

(e) by adding at the end of paragraph (3) (b) “and”;

(f) by omitting from paragraph (3) (c) “and” (last occurring); and

(g) by omitting paragraph (3) (d).


Deduction for car expenses where income-producing use does not exceed 5,000 kilometres—statutory formula

20. Section 82kx of the Principal Act is amended:

(a) by adding at the end of paragraph (1) (a) “and”;

(b) by omitting from paragraph (1) (b) “and” (last occurring); and

(c) by omitting paragraph (1) (c).

Elections

21. Section 82ky of the Principal Act is amended by omitting subsections (2) and (3) and substituting the following subsections:

“(2) Where:

(a) apart from this subsection, a taxpayer has not elected that subsection 82kw (2) or (3) or 82kx (1) apply in relation to a car in relation to a year of income; and

(b) whichever of the following amounts is the greatest:

(i) the sum of the deductions that would have been allowable under this Act to the taxpayer in respect of those car expenses if the taxpayer had made an election that subsection 82kw (2) apply in relation to the car in relation to the year of income;

(ii) the deduction that would have been allowable to the taxpayer in relation to the car in relation to the year of income if the taxpayer had elected that subsection 82kw (3) apply in relation to the car in relation to the year of income;

(iii) the deduction that would have been allowable to the taxpayer in relation to the car in relation to the year of income if the taxpayer had elected that subsection 82kx (1) apply in relation to the car in relation to the year of income;

exceeds the sum of the deductions allowable to the taxpayer under this Act in respect of car expenses relating to the car incurred by the taxpayer in the year of income and ascertained under section 82kud;

this Subdivision (other than the definition of ‘log book car’ in subsection 82kt (1) and section 82ktg) applies, and shall be deemed always to have applied, as if the election referred to in whichever of subparagraphs (b) (i), (ii) or (iii) is applicable had been made by the taxpayer in relation to the car in relation to the year of income.

“(3) For the purposes of subsection (2), where a deduction is not allowable to the taxpayer under this Act in respect of car expenses relating to a car incurred by the taxpayer in the year of income because of a failure to comply with section 82kub or 82kuc, the sum of those deductions shall be taken to be a nil amount.”.


Retention, and production, of documents

22. Section 82kza of the Principal Act is amended:

(a) by inserting before paragraph (1) (a) the following paragraph:

“(aa) in the case of a car expense that is in respect of fuel or oil and that was incurred when the car concerned was owned or leased by the taxpayer:

(i) documentary evidence of the expense; or

(ii) odometer records maintained by or on behalf of the taxpayer for:

(a) if the taxpayer elects that subsection 82kw (2) apply in relation to the car in relation to the year of income—the holding period within the meaning of that subsection; or

(b) in any other case—the holding period within the meaning of section 82kua;”;

(b) by omitting from paragraph (1) (a) “any case” and substituting “the case of any other expense”;

(c) by omitting from paragraphs (1) (b) and (3) (e) “relevant car documents” and substituting “log book records and odometer records”;

(d) by inserting before paragraph (3) (c) the following paragraph:

“(ba) in the case of a car expense that is in respect of fuel or oil and that was incurred when the car concerned was owned or leased by the taxpayer—produces to the Commissioner, within the period specified in the notice or such longer period as the Commissioner allows:

(i) documentary evidence of the expense; or

(ii) odometer records maintained by or on behalf of the taxpayer for:

(a) if the taxpayer elects that subsection 82kw (2) apply in relation to the car in relation to the year of income—the holding period within the meaning of that subsection; or

(b) in any other case—the holding period within the meaning of section 82kua;”;

(e) by inserting in paragraph (3) (c) “in the case of any other expense—” before “produces”;

(f) by inserting in paragraph (3) (d) “in a case where the taxpayer produces to the Commissioner documentary evidence—” before “includes”;

(g) by inserting before paragraph (5) (a) the following paragraph:


“(aa) odometer records of the kind referred to in subparagraph (1) (aa) (ii) maintained by or on behalf of the taxpayer in respect of a car expense incurred by the taxpayer;”;

(h) by omitting from paragraphs (5) (b) and (7) (a) “relevant car documents” and substituting “log book records or odometer records”;

(j) by omitting from subparagraph (6) (e) (i) “(1) (a) and (3) (c)” and substituting “(1) (aa) and (a) and (3) (ba), (c)”;

(k) by inserting after subsection (6) the following subsection:

“(6a) Where a document, being odometer records of the kind referred to in subparagraph (1) (aa) (ii) maintained by or on behalf of a taxpayer in respect of a car expense incurred by the taxpayer in a year of income, is lost or destroyed and the Commissioner is satisfied that:

(a) the taxpayer took all reasonable precautions to prevent loss or destruction of the document;

(b) the document was lost or destroyed because of circumstances beyond the control of the taxpayer; and

(c) subsection (5) does not apply in relation to the document;

paragraphs (1) (aa) and (3) (ba) do not apply in relation to the expense and shall be deemed not to have applied at any time after the document was lost or destroyed.”; and

(m) by inserting after subsection (7) the following subsection:

“(7a) For the purposes of this section, log book records or odometer records shall be deemed to relate to a car expense incurred by a taxpayer in a year of income (in this subsection called the ‘current year of income’) in relation to a car if, and only if:

(a) section 82kub requires the records to be maintained by or on behalf of the taxpayer as a condition of a deduction being allowable to the taxpayer under this Act in respect of the expense; or

(b) both of the following conditions are satisfied:

(i) the current year of income is not a log book year of income of the taxpayer in relation to the car;

(ii) section 82kub required the records to be maintained by or on behalf of the taxpayer as a condition of a deduction being allowable to the taxpayer under this Act in respect of a car expense incurred by the taxpayer in relation to the car in the year of income that was the last log book year of income of the taxpayer in relation to the car before the current year of income.”.


Modified application of Act in relation to certain unit trusts

23. Section 102l of the Principal Act is amended:

(a) by omitting from subsection (11) “116aa,”; and

(b) by omitting from subsection (12) “sections 116aa and” and substituting “section”.

Modified application of Act in relation to certain unit trusts

24. Section 102t of the Principal Act is amended:

(a) by omitting from subsection (12) “116aa,”; and

(b) by omitting from subsection (13) “sections 116aa and” and substituting “section”.

Interpretation

25. Section 103 of the Principal Act is amended:

(a) by omitting “section 24g, subsection 44 (2) or section 107” from the definition of “special fund dividends” in subsection (1) and substituting “24g or 107”; and

(b) by inserting “subsection 105a (4aa),” after “by virtue of in the definition of “the undistributed amount” in subsection (1).

Additional tax on undistributed amount

26. Section 104 of the Principal Act is amended by adding at the end the following subsection:

“(3) Additional tax under this section is not payable by a private company in relation to the year of income commencing on 1 July 1986 or a subsequent year of income unless the distributable income of the company of the year of income includes an amount of phasing-out dividends.”.

27. After section 104 of the Principal Act the following section is inserted:

Phasing-out dividends

“105. (1) Where, but for subsection (7), a company has made a sufficient distribution in relation to the year of income commencing on 1 July 1985 or a subsequent year of income, the phasing-out amount of the company in relation to the year of income is the amount of the excess referred to in subsection 105a (1) ascertained as at the end of the prescribed period and without regard to section 105aa.

“(2) Where, but for subsection (7), a company has not made a sufficient distribution in relation to the year of income commencing on 1 July 1985 or a subsequent year of income, the phasing-out amount of the company in relation to the year of income is the amount of the dividends taken into account in determining the undistributed amount in relation to the year of income ascertained as at the end of the prescribed period and without regard to section 105aa.


“(3) Where the amount that, but for subsection (7), would be the phasing-out amount of a company in relation to a year of income is greater than nil:

(a) the company shall:

(i) allocate the whole, or particular parts, of the phasing-out amount to the shareholder, or to all or any of the shareholders, to whom dividends (in this subsection called the ‘eligible dividends’), being dividends taken into account in ascertaining whether the company has made a sufficient distribution in relation to the year of income, were paid so that:

(a) a shareholder is not allocated an amount that exceeds the amount of eligible dividends so paid to the shareholder; and

(b) the sum of the amounts so allocated equals the phasing-out amount;

(ii) give to each such shareholder a notice in writing specifying the amount allocated to the shareholder; and

(iii) give to the Commissioner a copy of each such notice; and

(b) the allocation under paragraph (a) shall be made, and the notices given:

(i) if the prescribed period ended before the commencement of this subsection—within 28 days after the commencement of this subsection; or

(ii) in any other case—within 28 days after the end of the prescribed period;

or within such further time as the Commissioner allows.

“(4) Where dividends (in this subsection called ‘retrospective dividends’) paid to a shareholder in a company after 1 July 1985 are deemed by section 105aa to have been paid during the prescribed period in relation to a year of income of the company:

(a) the company shall:

(i) give to each shareholder to whom any of the retrospective dividends were paid a notice in writing stating that this subsection applies to the retrospective dividends paid to the shareholder; and

(ii) give to the Commissioner a copy of each such notice; and

(b) the notices under paragraph (a) in relation to the payment of dividends to a shareholder shall be given:

(i) if the dividends were paid before the commencement of this subsection—within 28 days after the commencement of this subsection or such further time as the Commissioner allows; or


(ii) in any other case—not later than 28 days after the time of payment of the dividends or such later time as the Commissioner allows.

“(5) Where all of the following conditions are satisfied in relation to dividends paid by a company:

(a) the dividends were paid after 1 July 1985;

(b) the dividends are taken into account in determining whether the company has made a sufficient distribution in relation to the year of income commencing on 1 July 1984 or an earlier year of income;

(c) apart from section 105aa, the dividends were paid during the prescribed period in relation to the year of income to which paragraph (b) applies;

the company shall, within 28 days after the commencement of this subsection or such further time as the Commissioner allows, give a notice in writing to each shareholder to whom any of the dividends were paid stating that this subsection applies to the dividends paid to the shareholder.

“(6) The distributable income of a company of a year of income (in this subsection called the ‘current year of income’) shall be taken to include phasing-out dividends of an amount equal to so much of the aggregate of the following amounts as does not exceed the distributable income:

(a) where the company has been given a notice under paragraph (3) (a) in relation to dividends paid to the company in the current year of income:

(i) if the notice relates only to dividends paid to the company in the current year of income—the amount allocated to the company in accordance with paragraph (3) (a);

(ii) if the notice relates to dividends paid to the company in the current year of income and also relates to dividends paid to the company in the year of income next succeeding the current year of income—so much of the amount allocated to the company in accordance with paragraph (3) (a) as does not exceed the amount of the dividends to which the notice relates that were paid to the company in the current year of income; and

(iii) if the notice relates to dividends paid to the company in the current year of income and also relates to dividends paid to the company in the year of income preceding the current year of income—the amount allocated to the company in accordance with paragraph (3) (a) reduced by so much of that amount as was taken into account in applying subparagraph (ii) of this paragraph to that preceding year of income;

(b) if the current year of income is the year of income commencing on 1 July 1986 or a later year of income and the company has been given a notice under subsection (4) or (5) in relation to dividends


paid to the company in the current year of income—the amount of the dividends paid.

“(7) If a company contravenes subsection (3), (4) or (5) in relation to a year of income, this Division applies to the company in relation to the year of income as if the company did not pay any dividends during the prescribed period.”.

Sufficient distribution

28. Section 105a of the Principal Act is amended by inserting after subsection (4) the following subsection:

“(4aa) A dividend paid by a company on or after 1 July 1987 shall not be taken into account in ascertaining whether a company is deemed to have made a sufficient distribution in relation to a year of income to the extent that the whole, or a part, of the dividend has been franked in accordance with section 160aqf.”.

Retention allowance

29. Section 105b of the Principal Act is amended:

(a) by inserting “preceding the year of income commencing on 1 July 1986” after “a year of income”; and

(b) by adding at the end the following subsection:

“(2) The retention allowance of a private company in respect of its distributable income of the year of income commencing on 1 July 1986 or of a subsequent year of income is the distributable income reduced by the amount of phasing-out dividends included in that distributable income.”.

Premiums not assessable income

30. Section 111 of the Principal Act is amended by omitting from subsection (2) “subsections 113 (2) and 116aa (1)” and substituting “subsection 113 (2)”.

Repeal of section 116aa

31. Section 116aa of the Principal Act is repealed.

Interpretation

32. Section 124zaa of the Principal Act is amended by adding at the end the following subsection:

“(11) Where the Minister is satisfied that:

(a) a proposed film, when completed, will have a significant non-Australian content; or

(b) a film has a significant non-Australian content;

the Minister may treat the proposed film or film as not being a qualifying Australian film for the purposes of this Division.”.


Provisional certificates

33. Section 124zab of the Principal Act is amended by inserting in subparagraph (6) (b) (ii) “Australian” after “qualifying”.

Determination of content of film

34. Section 124zad of the Principal Act is amended by omitting from the beginning of the section to and including “have regard to—” and substituting the following:

“In determining for the purposes of this Division whether a film has, or a proposed film, when completed, will have, a significant Australian content or a significant non-Australian content, the Minister shall have regard to—”.

Liability to withholding tax

35. Section 128b of the Principal Act is amended by omitting from paragraph (3) (c) “subsection 44 (2), or section 107,” and substituting “section 107”.

Interpretation

36. Section 160apa of the Principal Act is amended by inserting the following definitions in their respective appropriate alphabetical positions (determined on a letter-by-letter basis):

“ ‘corporate trust dividend’ means a unit trust dividend within the meaning of Division 6b or 6c of Part III;

‘corporate trust estate’ means a prescribed trust estate within the meaning of Division 6b or 6c of Part III;

‘current corporate trust’, in relation to a year of income, means:

(a) a corporate unit trust in relation to the year of income for the purposes of Division 6b of Part III; or

(b) a public trading trust in relation to the year of income for the purposes of Division 6c of Part III;

‘insurance funds’ has the same meaning as in Division 8 of Part III;

‘life assurance company’ means a life assurance company within the meaning of Division 8 of Part III;

‘resident trust estate’, in relation to a year of income, means a trust estate that is a resident unit trust in relation to the year of income for the purposes of Division 6b or 6c of Part III;

‘unit’ means a unit within the meaning of Division 6b or 6c of Part III;

‘unitholder’ means a unitholder within the meaning of Division 6b or 6c of Part III.”.

Receipt of franked dividends

37. Section 160app of the Principal Act is amended:

(a) by omitting “Where” and substituting “Subject to this section, where”; and


(b) by adding at the end the following subsections:

“(2) No franking credit arises if the dividend is wholly exempt income of the shareholder.

“(3) If the dividend is partly exempt income of the shareholder, the franking credit shall be reduced by the amount calculated in accordance with the formula:

where:

ED is the number of dollars in the part of the dividend that is exempt income;

FC is the amount of the franking credit determined under subsection (1); and

TD is the number of dollars in the total amount of the dividend.

“(4) No franking credit arises if the shareholder is a registered organisation within the meaning of Division 8a of Part III.

“(5) No franking credit arises if:

(a) the shareholder is a life assurance company; and

(b) the assets of the shareholder from which the dividend was derived were included in insurance funds of the shareholder at any time during the period commencing at the beginning of the year of income of the shareholder in which the dividend was paid and ending at the time the dividend was paid.”.

Receipt of franked dividends through trusts and partnerships

38. Section 160apq of the Principal Act is amended:

(a) by omitting “Where” and substituting “Subject to this section, where”; and

(b) by adding at the end the following subsections:

“(2) No franking credit arises if the company is a registered organisation within the meaning of Division 8a of Part III.

“(3) No franking credit arises if:

(a) the company is a life assurance company; and

(b) the assets of the company to which the trust amount or partnership amount is attributable were included in insurance funds of the company at any time during the period commencing at the beginning of the year of income of the company in which the franking credit would arise but for this subsection and ending at the time when the franking credit would arise but for this subsection.”.


Under-franking

39. Section 160apx of the Principal Act is amended by adding at the end the following subsection:

“(2) If the declaration made in relation to the dividend for the purposes of section 160aqf specifies a percentage for the purposes of subsection 160aqf (1a), the dividend shall be taken for the purposes of subsection (1) of this section to be a franked dividend to the extent of the percentage so specified.”.

40. After section 160apx of the Principal Act the following section is inserted:

Excessive reduction in section 160apx debit

“160apxa. (1) Where:

(a) a franking debit of a company that would have arisen under section 160apx has been reduced (including a reduction to nil) under subsection 160apx (2) because the company specified a percentage for the purposes of subsection 160aqf (1a) in relation to a year of income; and

(b) the total amount of the dividends taken into account in determining whether the company has made a sufficient distribution for the purposes of Division 7 of Part III in relation to that year of income exceeds the amount of the dividends required to be paid in order that the company be taken to have made a sufficient distribution;

the Commissioner may determine that a franking debit is to arise in relation to the company of such an amount as the Commissioner considers reasonable, not exceeding 120% of the amount of the reduction.

“(2) The franking debit of the company arises on the day on which the Commissioner serves on the company a notice specifying the amount of the debit.”.

41. After section 160aqc of the Principal Act the following section is inserted in Division 2 of Part IIIaa:

Transfer of asset to insurance funds

“160aqca. Where:

(a) a franking credit of a life assurance company arose under section 160app or 160apq at a particular time during a year of income of the company; and

(b) after that time and during the year of income:

(i) if section 160app applied—the asset of the company from which the dividend referred to in that section was derived; or

(ii) if section 160apq applied—the asset of the company to which the trust amount or partnership amount referred to in that section is attributable;

becomes part of the insurance funds of the company;


there arises, on the day on which the asset becomes part of the insurance funds, a franking debit of the company equai to the franking credit.”.

What constitutes franking

42. Section 160aqf of the Principal Act is amended by inserting after subsection (1) the following subsection:

“(1a) Where a company that is making a declaration for the purposes of subsection (1) wishes part of each dividend to which the declaration relates to be taken into account in determining whether the company has made a sufficient distribution for the purposes of Division 7 of Part III in relation to a particular year of income, the company may, as well as specifying a percentage for the purposes of subsection (1), specify a greater percentage (not exceeding 100%) for the purposes of this subsection in relation to that year of income.”.

43. After section 160ard of the Principal Act the following Division is inserted:

Division 7aApplication of Part in relation to Trusts that are Treated as Companies

Subdivision A—General Modifications

General application of Part in relation to corporate trust estates

“160arda. (1) The object of this Division is to provide for the application of this Part in relation to corporate trust estates and current corporate trusts.

“(2) In this Part, unless the contrary intention appears:

(a) a reference to a company includes a reference to a corporate trust estate or, as the context requires, to the trustee of a corporate trust estate;

(b) a reference to a shareholder includes a reference to a unitholder;

(c) a reference to a share includes a reference to a unit; and

(d) a reference to a dividend includes a reference to a corporate trust dividend.

“(3) Section 160apb does not apply in relation to a corporate trust estate.

Company tax to include tax payable by current corporate trust

“160arda. In this Part, a reference to company tax includes a reference to tax payable by the trustee of a current corporate trust on the net income of the current corporate trust.


Certain corporate trust dividends to be treated as frankable dividends

“160ardc. A reference in the definition of ‘frankable dividend’ in section 160apa to a dividend within the meaning of section 6 includes a reference to a corporate trust dividend.

Subdivision BModification of Rules Regarding Franking Credits and Franking Debits

Residence requirement for credit or debit to arise

“160ardd. (1) Sections 160apk and 160apw do not apply in relation to a corporate trust estate.

“(2) A franking credit or franking debit of a corporate trust estate does not arise in relation to:

(a) the payment of a company tax instalment for a year of income;

(b) an assessment or amended assessment of company tax for a year of income; or

(c) a foreign tax credit allowable in respect of tax paid or payable in respect of income derived during a year of income;

unless the corporate trust estate is a current corporate trust in relation to the year of income.

Franking credit where franked dividends received

“160arde. In applying section 160app to a dividend paid to the trustee of a corporate trust estate, the requirement in paragraph (1) (b) of that section is to be replaced by a requirement that the corporate trust estate is a current corporate trust in relation to the year of income of the corporate trust estate in which the dividend is paid.

Franking credit where franked dividends received through trusts and partnerships

“160ardf. Section 160apq does not apply to a trust amount or partnership amount included in the assessable income of a corporate trust estate of a year of income unless the corporate trust estate is a current corporate trust in relation to that year of income.

Subdivision C—Franking of Corporate Trust Dividends

Residence requirement for franking

“160ardg. In applying section 160aqf to a corporate trust dividend paid to a unitholder in a corporate trust estate, the requirement in paragraph (1) (b) of that section is to be replaced by a requirement that the corporate trust estate is a resident trust estate in relation to the year of income of the corporate trust estate in which the corporate trust dividend is paid.


Residence requirement for franking deficit tax to offset tax payable by trustee

“160ardh. In applying section 160aqk to franking deficit tax payable by the trustee of a corporate trust estate, a reference in that section to an eligible year of income in which a company was sufficiently resident shall be read as a reference to an eligible year of income in relation to which the corporate trust estate was a current corporate trust.

Subdivision DMiscellaneous

No extra amount assessable under section 160aqt to trustee of corporate trust estate

“160ardj. Section 160aqt does not apply to the payment of a franked dividend to the trustee of a current corporate trust.

No rebate under section 160aqx or 160aqz to trustee of current corporate trust

“160ardk. The trustee of a current corporate trust is not entitled to a rebate of tax under section 160aqx or 160aqz.

Adjustments for section 160aqt amounts

“160ardl. Sections 160ar, 160ara and 160ard do not apply to the trustee of a corporate trust estate in relation to a year of income unless the corporate trust estate is a current corporate trust in relation to that year of income.”.

Provisional tax on estimated income

44. Section 221yda of the Principal Act is amended by omitting from paragraph (1) (da) and subparagraph (2) (a) (ii) “or 160acd” and substituting “, 160acd, 160aqu, 160aqx, 160aqy or 160aqz”.

Additional tax where income underestimated

45. Section 221ydb of the Principal Act is amended by omitting the definition of component C from subsection (1aa) and substituting the following definition:

C is the amount of any previous instalments of provisional tax for the year of income.”.

46. After section 223 of the Principal Act the following section is inserted:

Penalty tax for over-estimating business percentage applicable to car held by taxpayer

“223a. (1) Where:

(a) a taxpayer, in his or her return for a year of income, specifies, or purports to specify, (otherwise than by virtue of section 82kue) a percentage (in this subsection called the ‘excessive percentage’) of the kind mentioned in section 82kub or 82kuc in respect of a car


held by the taxpayer during a period (in this section called the ‘holding period’) in the year of income;

(b) the excessive percentage exceeds the percentage (in this subsection called the ‘reduced percentage’) that is the lesser of the following percentages:

(i) if the excessive percentage is a percentage of the kind mentioned in subparagraph 82kub (c) (ii) or sub-subparagraph 82kuc (b) (i) (a)—the business percentage applicable to the car that was established during the applicable log book period referred to in subparagraph 82kub (c) (ii) or sub-subparagraph 82kuc (b) (i) (a), as the case may be;

(ii) in all cases—the percentage that represents a reasonable estimate of the underlying business percentage applicable to the car in relation to the taxpayer for the holding period;

(c) the percentage calculated in accordance with the formula:

EP–RP

where:

EP is the excessive percentage; and

RP is the reduced percentage;

is a percentage that:

(i) if any of the following sub-subparagraphs apply:

(a) the year of income is a log book year of income of the taxpayer in relation to the car;

(b) the year of income is not a log book year of income of the taxpayer in relation to the car and the car is a low business kilometre car of the taxpayer in relation to the year of income;

(c) the year of income is not a log book year of income of the taxpayer in relation to the car and the excessive percentage is a percentage of the kind mentioned in sub-subparagraph 82kuc (b) (i) (a);

exceeds nil; or

(ii) in any other case—exceeds 10%; and

(d) the tax properly payable by the taxpayer exceeds the tax that would have been payable by the taxpayer if:

(i) Subdivision F of Division 3 of Part III had not been enacted; and

(ii) the amount of a deduction allowable under this Act to the taxpayer in respect of a car expense relating to the car incurred by the taxpayer in the year of income were equal to the excessive percentage of the amount of the exclusive business use deduction in respect of the car expense;

the taxpayer is liable to pay, by way of penalty, additional tax equal to double the amount of the excess referred to in paragraph (d).


“(2) An expression used in subsection (1) and in Subdivision F of Division 3 of Part III has the same meaning in that subsection as it has in that Subdivision.”.

Application and transitional provisions

47. (1) The amendments made by sections 9, 12 and 13, paragraph 25 (a) and section 35 apply to dividends satisfied by the issue, on or after 1 July 1987, of shares.

(2) The amendments made by paragraphs 10 (b) and (c) and sections 11, 23, 24, 30 and 31 apply to assessments in respect of income of the year of income commencing on 1 July 1987 and of all subsequent years of income.

(3) The amendments made by sections 14 to 22 (inclusive) and section 46 apply in relation to an expense incurred by a taxpayer in a year of income commencing on or after 1 July 1986.

(4) For the purposes of Subdivision F of Division 3 of Part III of the Principal Act as amended by this Part, where:

(a) a taxpayer incurs a car expense in relation to a car during the year of income commencing on 1 July 1986;

(b) apart from this subsection, odometer records in relation to the car were not maintained by or on behalf of the taxpayer for:

(i) if the taxpayer elects that subsection 82kw (2) apply in relation to the car in relation to the year of income—the holding period within the meaning of that subsection; or

(ii) in any other case—the holding period within the meaning of section 82kua; and

(c) before the date of lodgment of the taxpayer’s return for the year of income, or within such further time as the Commissioner allows, the taxpayer sets out in a document, in the English language:

(i) reasonable estimates of the odometer readings of:

(a) the car; and

(b) if paragraph 82ktj (1) (b) of that Act applies—both the replacement car and the original car referred to in that paragraph;

as at the dates or times referred to in paragraph (a) of the definition of ‘odometer records’ in subsection 82kt (1) of that Act;

(ii) particulars of:

(a) the car; and

(b) if paragraph 82ktj (1) (b) of that Act applies—both the replacement car and the original car referred to in that paragraph;

being particulars of the kind referred to in paragraph (b) of that definition; and


(iii) a declaration signed by the taxpayer that, to the best of his or her knowledge and belief:

(a) the estimates are reasonable; and

(b) the particulars are correct;

the following provisions have effect:

(d) the document shall be deemed to be and to have been, at all times after the commencement of that holding period, odometer records maintained by or on behalf of the taxpayer in relation to the car for that holding period;

(e) the retention period in relation to the document shall be deemed to commence when the taxpayer signs the declaration.

(5) The amendments made by sections 32 and 34 do not apply in relation to a film if an application in respect of the film under section 124zab or 124zac of the Principal Act was received on or before 6 May 1987.

Amendment of assessments

48. Nothing in section 170 of the Principal Act prevents the amendment of an assessment made before the commencement of this section for the purpose of giving effect to this Part.

 

PART V—AMENDMENT OF THE PAY-ROLL TAX (TERRITORIES) ASSESSMENT ACT 1971

Principal Act

49. The Pay-roll Tax (Territories) Assessment Act 19714 is in this Part referred to as the Principal Act.

Interpretation

50. Section 4 of the Principal Act is amended by inserting the following definition in its appropriate alphabetical position (determined on a letter-by-letter basis):

“ ‘apprentice’ means:

(a) an apprentice within the meaning of the Apprenticeship Ordinance 1936 of the Australian Capital Territory;

(b) a person who is an applicant for apprenticeship within the meaning of that Ordinance and is employed on probation; or

(c) a person whose employment is of a kind that, under the regulations, is to be treated as apprenticeship for the purposes of this Act, being employment principally for either of the following purposes:

(i) training the person in a trade or other occupation;

(ii) assessing the person’s suitability for training in a trade or other occupation;”.


 

Exemption from tax

51. Section 13 of the Principal Act is amended:

(a) by omitting from paragraph (h) “or”; and

(b) by adding at the end the following paragraphs:

“(j) to a person employed as an apprentice, where the wages are in respect of the period of 12 months commencing on the first day of the person’s employment as such an apprentice; or

(k) to a trainee employed under a training agreement as part of the scheme known as the Australian Traineeship System.”.

Deferral of refund of overpaid tax etc.

52. (1) Notwithstanding anything contained in section 25 of the amended Act, where an amount of tax has been overpaid by an employer because of the amendments made by this Part, the Commissioner shall not:

(a) refund the whole or a part of that amount; or

(b) apply the whole or a part of that amount against any liability of the employer to the Commonwealth;

before 1 July 1987.

(2) In this section:

“amended Act” means the Principal Act as amended by this Part;

“tax” has the same meaning as in section 25 of the amended Act.

Application

53. The amendments made by this Part apply to wages paid or payable by an employer on or after the date of commencement of this section.

 

PART VI—AMENDMENT OF THE TAXATION ADMINISTRATION ACT 1953

Principal Act

54. The Taxation Administration Act 19535 is in this Part referred to as the Principal Act.

Acting appointments

55. (1) Section 6b of the Principal Act is amended:

(a) by omitting from subsections (1), (2), (5), (8) and (9) “Governor-General” and substituting “Prime Minister”; and

(b) by adding at the end the following subsection:

“(11) A power conferred on the Prime Minister by this section may be exercised on the Prime Minister’s behalf by the Treasurer, where the Treasurer is authorised by the Prime Minister to do so.”.

(2) An appointment, direction or determination by the Governor-General under section 6b of the Principal Act that was in force immediately before


the commencement of this section shall, after that commencement, be deemed to be an appointment, direction or determination by the Prime Minister under section 6b of the Principal Act as amended by this Act.

 

PART VII—AMENDMENT OF CERTAIN ACTS RELATING TO BANK ACCOUNT DEBITS TAX

Amendment of Acts

56. The Acts specified in Schedule 1 are amended as set out in that Schedule.

Application of amendments

57. (1) The amendments made by this Part inserting sections 3a and 3b in the Bank Account Debits Tax Administration Act 1982 apply to debits made on or after the date of commencement of this subsection.

(2) The amendment of the Bank Account Debits Tax Administration Act 1982 made by this Part that substitutes a new paragraph (b) in the definition of “excluded debit” in subsection 3 (1) of that Act applies to debits made on or after the date of commencement of this subsection.

 

PART VIII—AMENDMENT OF CERTAIN ACTS IN CONNECTION WITH THE TRANSFER OF CERTAIN AUSTRALIAN CAPITAL TERRITORY TAXES AND DUTIES

Objects of Part

58. (1) The objects of this Part are:

(a) to terminate the imposition of taxes and duties under certain taxation laws relating to the Australian Capital Territory; and

(b) to provide for the transfer of the administration of those laws.

(2) This Part, and the laws affected by this Part, shall be construed so as to give effect to the objects of this Part.

Amendment of Acts

59. The Acts specified in Schedule 2 are amended as set out in that Schedule.

Amendment of Acts

60. The Acts specified in Schedule 3 are amended as set out in that Schedule.

Transitional provisions relating to annual reports

61. (1) If the date of commencement of section 59 of this Act (in this subsection called the “changeover day”) is after 1 July 1987, the report under section 6a of the Australian Capital Territory Taxation (Administration) Act 1969 on the working of that Act during the year ending on 30 June 1988:


(a) shall be prepared and furnished by the Commissioner of Taxation in so far as it relates to the working of that Act before the changeover day; and

(b) shall be prepared and furnished by the A.C.T. Commissioner referred to in that Act in so far as it relates to the working of that Act on or after the changeover day.

(2) The reference in subsection (1) to a report under the Australian Capital Territory Taxation (Administration) Act 1969 includes a reference to so much of a report under section 3b of the Taxation Administration Act 1953 or section 7 of the Taxation (Interest on Overpayments) Act 1983 as relates to the working of the Australian Capital Territory Taxation (Administration) Act 1969.

(3) If the date of commencement of section 60 of this Act (in this subsection called the “termination day”) is after 1 July 1987, the report under section 7a of the Pay-roll Tax (Territories) Assessment Act 1971 on the working of that Act during the year ending on 30 June 1988:

(a) shall be prepared and furnished by the Commissioner of Taxation in so far as it relates to the working of that Act before the termination day; and

(b) shall be prepared and furnished by the A.C.T. Commissioner referred to in that Act in so far as it relates to the working of that Act on or after the termination day.

(4) The reference in subsection (3) to a report under the Pay-roll Tax (Territories) Assessment Act 1971 includes a reference to so much of a report under section 3b of the Taxation Administration Act 1953 or section 7 of the Taxation (Interest on Overpayments) Act 1983 as relates to the working of the Pay-roll Tax (Territories) Assessment Act 1971.

 

PART IX—AMENDMENT OF CERTAIN ACTS RELATING TO THE COMMISSIONER’S INFORMATION GATHERING AND ACCESS POWERS

Amendment of Acts

62. The Acts specified in Schedule 4 are amended as set out in that Schedule.

—————


SCHEDULE 1                                                Section 56

AMENDMENTS OF CERTAIN ACTS RELATING TO BANK ACCOUNT DEBITS TAX

Administrative Decisions (Judicial Review) Act 1977

Schedule 1 (paragraph (e)):

Omit “Bank Account”.

Australian Sports Commission Act 1985

Subsection 37 (1):

Omit “Bank Account”.

Australian Institute of Sport Act 1986

Subsection 39 (1):

Omit “Bank Account”.

Bank Account Debits Tax Administration Act 1982

Title

Omit “banks”, substitute “finanical institutions”.

Section 1:

Omit “Bank Account”.

Subsection 3 (1) (other than the definitions of “account”, “bank”, “cheque” and “tax” and paragraph (b) of the definition of “excluded debit”):

Omit “bank” (wherever occurring), substitute “financial institution”.

Subsection 3 (1) (definition of “bank”):

Add “, but does not include a non-bank financial institution” at the end of the definition.

Subsection 3 (1) (paragraph (b) of the definition of “excluded debit”):

Omit the paragraph, substitute the following paragraph:

“(b) made to an account kept with a financial institution (in this paragraph called the ‘account keeping institution’) in the name of another financial institution (in this paragraph called the ‘account holding institution’) where:

(i) either of the following conditions is satisfied:

(a) the business carried on by the account holding institution in Australia consists wholly or principally of banking business;

(b) all debits made, or to be made, to the account are in connection with banking business carried on by the account holding institution in Australia; and

(ii) the debit is not in connection with a cheque or payment order drawn on the account keeping institution by the account holding institution


SCHEDULE 1—continued

where the cheque or payment order was, at a time when it was incomplete, delivered by the account holding institution to a customer under an agreement under which the customer was authorised to fill up the cheque or payment order;”.

Subsection 3 (1) (definition of “tax”):

Omit “Bank Account”.

Subsection 3 (1) (definition of “account”):

Omit the definition, substitute the following definition:

“ ‘account’ means:

(a) an account kept with a bank, being an account to which payments by the bank in respect of cheques drawn on the bank by the account holder, or by any one or more of the account holders, may be debited; or

(b) an account kept with a non-bank financial institution, being an account to which payments by the institution in respect of payment orders drawn on the institution by the account holder, or by one or more of the account holders, may be debited;”.

Subsection 3 (1):

Insert the following definition in its appropriate alphabetical position (determined on a letter-by-letter basis):

“ ‘account transaction’, in relation to an account, means:

(a) the payment of a cheque;

(b) the payment of a payment order; or

(c) the doing of any other act or thing;

that will result in the making of a debit to that account;”.

Subsection 3 (1):

Insert the following definitions in their respective appropriate alphabetical positions (determined on a letter-by-letter basis):

“ ‘financial institution’ means:

(a) a bank; or

(b) a non-bank financial institution;

‘incomplete’, in relation to a cheque or payment order, means wanting in a material particular necessary for the cheque or payment order to be, on its face, a complete cheque or payment order;

‘non-bank financial institution’ means a non-bank financial institution within the meaning of the Cheques and Payment Orders Act 1986 that carries on a business that includes the keeping of accounts that may be drawn on by payment order;

‘payment order’ has the same meaning as in the Cheques and Payment Orders Act 1986;”.

Section 3:

Add at the end the following subsection:

“(9) A reference in this Act to an account kept with a non-bank financial institution includes a reference to an account kept by way of withdrawable share capital in, or money deposited with, the institution.”.

After section 3:

Insert the following sections in Part I:

Deemed separate debits

“3a. For the purposes of this Act, a debit that, but for this section, would be a


SCHEDULE 1—continued

single debit made to an account in respect of 2 or more account transactions shall be treated as being separate debits in relation to each of those account transactions.

Debits to be expressed in Australian currency

“3b. Where a debit is made in a currency other than Australian currency, a reference in this Act to the amount of the debit is a reference to the amount of the debit expressed in terms of Australian currency.”.

Section 8:

Omit “Bank Account (wherever occurring).

Subsection 8 (1):

Omit “bank with”, substitute “financial institution with”.

Section 10:

Omit “bank” (wherever occurring), substitute “financial institution”.

Subsection 11 (5):

Omit “bank” (wherever occurring), substitute “financial institution”.

Subsections 12 (1) and (3):

Omit “bank” (wherever occurring), substitute “financial institution”.

Subsections 13 (1) and (2):

Omit “bank” (wherever occurring), substitute “financial institution”.

Subsections 14 (1), (2) and (5):

Omit “bank” (wherever occurring), substitute “financial institution”.

Subsections 15 (1), (3) and (4):

Omit “bank”, substitute “financial institution”.

Paragraph 16 (3) (a):

Omit “bank”, substitute “financial institution”.

Subsection 18 (3):

Omit “bank” (wherever occurring), substitute “financial institution”.

Section 56:

Omit “bank” (wherever occurring), substitute “financial institution”.

After subsection 57 (1):

Insert the following subsections:

“(1a) A non-bank financial institution that carries on a business in Australia that includes the keeping of accounts that may be drawn on by payment order:

(a) may appoint an officer or officers of the institution to be a representative officer or representative officers of the institution for the purposes of this Act; and

(b) unless exempted by the Commissioner, shall ensure that, at all times after the end of one month after the commencement of this subsection, or after the day on which the institution commences to carry on that business in Australia, whichever is the later, there is at least one officer who holds an appointment as such a representative officer.

“(1b) A non-bank financial institution that contravenes subsection (1a) is, in respect of each day on which it contravenes that subsection (including the day of a conviction


SCHEDULE 1—continued

of an offence against this subsection or any subsequent day), guilty of an offence punishable on conviction by a fine not exceeding $50.”.

Subsections 57 (2), (3), (4) and (5):

Omit “bank” (wherever occurring), substitute “financial institution”.

Taxation Administration Act 1953

Paragraph 8j (2) (g):

Omit “Bank Account”.

Paragraph 8ze (3) (b):

Omit “Bank Account”.

Subparagraph 14zka (2) (b) (ii):

Omit “Bank Account”.

Taxation (Interest on Overpayments) Act 1983

Subsection 3 (1) (paragraph (c) of the definition of “objection”):

Omit “Bank Account”.

Subsection 3 (1) (paragraph (g) of the definition of “relevant tax”):

Omit “Bank Account”.

—————

SCHEDULE 2                                             Section 59

AMENDMENT OF CERTAIN ACTS IN CONNECTION WITH THE TRANSFER OF CERTAIN AUSTRALIAN CAPITAL TERRITORY TAXES AND DUTIES

Australian Capital Territory Stamp Duty Act 1969

After section 3:

Insert the following section:

Termination of stamp duty

“3a. (1) Stamp duty is not imposed by subsection 4 (1) on:

(a) an instrument of Crown lease where the date of commencement specified in the lease is on or after the termination day;

(b) a bill of exchange or promissory note that is drawn or made on or after the termination day; or

(c) an instrument (not being an instrument of Crown lease or a bill of exchange or promissory note) that is executed on or after the termination day.

“(2) Stamp duty is not imposed by subsection 4 (1) on a bill of exchange or promissory note by reason of its negotiation, presentment for payment or payment on or after the termination day.”.


SCHEDULE 2—continued

Australian Capital Territory Taxation (Administration) Act 1969

Subsection 4 (1) (definition of “Commissioner”):

Omit the definition.

Subsection 4 (1):

Insert the following definitions in their respective appropriate alphabetical positions (determined on a letter-by-letter basis):

“ ‘A.C.T. Commissioner’ means the Commissioner for Australian Capital Territory Revenue Collections appointed under the Taxation Administration Ordinance 1987 of the Australian Capital Territory;

‘changeover day’ means the date of commencement of section 59 of the Taxation Laws Amendment Act (No. 2) 1987;

‘Commonwealth Commissioner’ means the Commissioner of Taxation;

‘termination day’ means:

(a) in relation to tax or duty of a particular class or classes in respect of which a day is fixed by Proclamation as the termination day—that day; and

(b) in any other case—the changeover day;”.

After section 5:

Insert the following section:

Transfer of administration from Commonwealth Commissioner

“5a. (1) On and after the changeover day, this Act and related laws have effect as if:

(a) a reference in this Act (other than sections 7 and 95) or a related law to the Commissioner or to the Commissioner of Taxation were a reference to the A.C.T. Commissioner;

(b) anything done by, or done or arising in relation to, the Commonwealth Commissioner before the changeover day had been done by, or had been done or had arisen in relation to, the A.C.T. Commissioner;

(c) a reference in sections 58ad, 58t and 91a to an Act of which the A.C.T. Commissioner has the general administration included a reference to a law of the Territory of which the A.C.T. Commissioner has the general administration;

(d) a reference in sections 7 and 95 to the Commissioner were a reference to the A.C.T. Commissioner or the Commonwealth Commissioner; and

(e) a reference in section 3c of the Taxation Administration Act 1953 and section 8 of the Taxation (Interest on Overpayments) Act 1983 to the Commissioner were a reference to the A.C.T. Commissioner or the Commonwealth Commissioner.

“(2) Where, at the beginning of the changeover day, the Commonwealth Commissioner is a party to proceedings that are in whole or in part proceedings arising out of this Act or a related law:

(a) the proceedings, if continued, shall be continued with the Commonwealth Commissioner as a party; and

(b) the Commonwealth Commissioner shall act as representative of the A.C.T. Commissioner in so far as the proceedings are proceedings arising out of this Act or the related law.


SCHEDULE 2—continued

“(3) Section 8 of the Taxation Administration Act 1953 applies for the purposes of this Act and any related law as if references in that section to the Commonwealth Commissioner were references to the A.C.T. Commissioner.

“(4) In this section:

‘party’ includes intervenor;

‘related law’ means any law of the Commonwealth (other than Part II, and Division 3 of Part IIIa, of the Taxation Administration Act 1953) to the extent to which the law has effect in relation to this Act.

“(5) A reference in any law of the Commonwealth to an Act of which the Commonwealth Commissioner has the general administration includes a reference to this Act.”.

Section 22:

After the penalty, insert the following subsection:

“(2) This section does not apply to the supply or use of a cheque form on or after the day that is the termination day for the tax imposed by the Australian Capital Territory Tax (Cheques) Act 1969.”.

Section 23:

After the penalty, insert the following subsection:

“(2) This section does not apply to the drawing of a cheque on or after the day that is the termination day for the tax imposed by the Australian Capital Territory Tax (Cheques) Act 1969.”.

After subsection 24 (1):

Insert the following subsection:

“(1a) Subsection (1) does not apply in respect of a month commencing on or after the termination day for the tax imposed by the Australian Capital Territory Tax (Cheques) Act 1969.”.

After subsection 32 (1):

Insert the following subsection:

“(1a) This section does not apply in relation to a month commencing on or after the termination day.”.

After subsection 42 (1):

Insert the following subsection:

“(1a) This section does not apply in relation to a month commencing on or after the termination day.”.

After subsection 44e (1):

Insert the following subsection:

“(1a) This section does not apply in relation to a month commencing on or after the termination day.”.

After subsection 52 (1):

Insert the following subsection:


SCHEDULE 2—continued

“(1a) Subsection (1) does not apply in respect of a sale or purchase of a marketable security occurring on or after the changeover day.”.

Section 52:

Before the penalty, insert the following subsection:

“(4) This section does not apply to the impressing of a stamp on or after the day that is the termination day for the tax imposed by the Australian Capital Territory Tax (Purchases of Marketable Securities) Act 1969.”.

After subsection 53 (1):

Insert the following subsection:

“(1a) This section does not apply in relation to a month commencing on or after the day that is the termination day for the tax imposed by the Australian Capital Territory Tax (Purchases of Marketable Securities) Act 1969.”.

After paragraph 58c (1) (a):

Insert the following paragraph:

“(aa) the Registrar is satisfied that the registration is exempt from tax under section 3a of the Taxing Act;”.

Section 58g:

Add at the end the following subsection:

“(2) This section does not apply to a transfer of a marketable security where the transfer is effected by an instrument of transfer that appears to have been executed by the transferor, or by any of the transferors, on or after the changeover day (including an instrument that appears to have been executed by the transferee or by any of the transferees, before the changeover day).”.

Section 58m:

Add at the end the following subsection:

“(6) This section does not apply to an increase or advance that is made, or an enforcement that occurs, on or after the termination day.”.

After subsection 58p (2):

Insert the following subsection:

“(2a) Subsection (2) does not apply if the collateral security is executed on or after the termination day.”.

Section 58q:

Add at the end the following subsection:

“(3) This section does not apply to a payment made on or after the termination day.”.

After subsection 58r (2):

Insert the following subsection:

“(2a) Subsection (2) does not apply in respect of any month commencing on or after the termination day.”.


SCHEDULE 2—continued

Australian Capital Territory Tax (Cheques) Act 1969

After section 3:

Insert the following section:

Termination of tax

“3a. Tax is not imposed on cheque forms supplied or used by a banker on or after the termination day.”.

Australian Capital Territory Tax (Hire-purchase Business) Act 1969

After section 3:

Insert the following section:

Termination of tax

“3a. Tax is not imposed on a hire-purchase agreement that is entered into on or after the termination day.”.

Australian Capital Territory Tax (Insurance Business) Act 1969

After section 3:

Insert the following section:

Termination of tax

“3a. Tax is not imposed on premiums received by an insurer in respect of insurance effected by the insurer on or after the termination day.”.

Australian Capital Territory Tax (Life Insurance Business) Act 1981

After section 3:

Insert the following section:

Termination of tax

“3a. Tax is not imposed in respect of life insurance effected on or after the termination day.”.

Australian Capital Territory Tax (Purchases of Marketable Securities) Act 1969

After section 3:

Insert the following section:

Termination of tax

“3a. Tax is not imposed on a purchase of a marketable security where the purchase is made on or after the termination day.”.

Australian Capital Territory Tax (Sales of Marketable Securities) Act 1969

After section 3:

Insert the following section:

Termination of tax

“3a. Tax is not imposed on a sale of a marketable security where the sale is made on or after the termination day.”.


SCHEDULE 2—continued

Australian Capital Territory Tax (Transfers of Marketable Securities) Act 1986

After section 3:

Insert the following section:

Termination of tax

“3a. Tax is not imposed on the registration of a transfer of a marketable security where the transfer is effected by an instrument of transfer that appears to have been executed by the transferor, or by any of the transferors, on or after the termination day (including an instrument that appears to have been executed by the transferee, or by any of the transferees, before the termination day).”.

Australian Capital Territory Tax (Vehicle Registration) Act 1981

After section 3:

Insert the following section:

Termination of tax

“3a. Tax is not imposed in respect of the registration of a vehicle where application for the registration is made on or after the termination day.”.

————

SCHEDULE 3                                             Section 60

AMENDMENT OF CERTAIN ACTS IN CONNECTION WITH THE TRANSFER OF AUSTRALIAN CAPITAL TERRITORY PAY-ROLL TAX

Pay-roll Tax (Territories) Act 1971

After section 2:

Insert the following section:

Termination of tax

“2a. This Act does not impose tax on wages that become payable on or after the termination day.”.

Paragraph 3 (1) (d):

Insert “and before the termination day” after “1974”.

Subsection 3 (2):

Omit “section”, substitute “Act”.

Pay-roll Tax (Territories) Assessment Act 1971

Subsection 4 (1) (definition of “the Commissioner”):

Omit the definition.

Subsection 4 (1):

Insert the following definitions in their respective appropriate alphabetical positions (determined on a letter-by-letter basis):


SCHEDULE 3—continued

“ ‘A.C.T. Commissioner’ means the Commissioner for Australian Capital Territory Revenue Collections appointed under the Taxation Administration Ordinance 1987 of the Australian Capital Territory;

‘Commonwealth Commissioner’ means the Commissioner of Taxation;

‘termination day’ means the date of commencement of section 60 of the Taxation Laws Amendment Act (No. 2) 1987;”.

After section 5:

Insert the following section:

Transfer of administration from Commonwealth Commissioner

“5a. (1) On and after the termination day, this Act and related laws have effect as if:

(a) a reference in this Act (other than section 8) or a related law to the Commissioner or to the Commissioner of Taxation were a reference to the A.C.T. Commissioner;

(b) anything done by, or done or arising in relation to, the Commonwealth Commissioner before the termination day had been done by, or had been done or had arisen in relation to, the A.C.T. Commissioner;

(c) a reference in sections 21j, 21k and 25 to an Act of which the A.C.T. Commissioner has the general administration included a reference to a law of the Territory of which the A.C.T. Commissioner has the general administration;

(d) a reference in section 8 to the Commissioner were a reference to the A.C.T. Commissioner or the Commonwealth Commissioner; and

(e) a reference in section 3c of the Taxation Administration Act 1953 and section 8 of the Taxation (Interest on Overpayments) Act 1983 to the Commissioner were a reference to the A.C.T. Commissioner or the Commonwealth Commissioner.

“(2) Where, at the beginning of the termination day, the Commonwealth Commissioner is a party to proceedings that are in whole or in part proceedings arising out of this Act or a related law:

(a) the proceedings, if continued, shall be continued with the Commonwealth Commissioner as a party; and

(b) the Commonwealth Commissioner shall act as representative of the A.C.T. Commissioner in so far as the proceedings are proceedings arising out of this Act or the related law.

“(3) Section 8 of the Taxation Administration Act 1953 applies for the purposes of this Act and any related law as if references in that section to the Commonwealth Commissioner were references to the A.C.T. Commissioner.

“(4) In this section:

‘party’ includes intervenor;

‘related law’ means any law of the Commonwealth (other than Part II, and Division 3 of Part IIIa, of the Taxation Administration Act 1953) to the extent to which the law has effect in relation to this Act.

“(5) A reference in any law of the Commonwealth to an Act of which the Commonwealth Commissioner has the general administration includes a reference to this Act.”.

After subsection 14 (1):

Insert the following subsection:


 

SCHEDULE 3—continued

“(1aa) This section does not apply in relation to the financial year commencing on 1 July 1987 or any subsequent financial year.”.

After subsection 15a (1):

Insert the following subsection:

“(1a) This section does not apply in relation to the financial year commencing on 1 July 1987 or any subsequent financial year.”.

After subsection 17 (1):

Insert the following subsection:

“(1aa) Nothing in this Act requires the furnishing of a return in respect of a period commencing on or after the termination day.”.

After subsection 21j (1):

Insert the following subsection:

“(1a) This section does not apply in relation to the financial year commencing on 1 July 1987 or any subsequent financial year.”.

After subsection 21k (2):

Insert the following subsection:

“(2a) This section does not apply in relation to a group period ending on or after the termination day.”.

—————

SCHEDULE 4                                             Section 62

AMENDMENTS RELATING TO THE COMMISSIONER’S INFORMATION GATHERING AND ACCESS POWERS

Australian Capital Territory Taxation (Administration) Act 1969

Section 97:

Add at the end the following subsection:

“(3) The occupier of land entered or proposed to be entered by an officer under subsection (1) shall provide the officer with all reasonable facilities and assistance for the effective exercise of powers under this section.

Penalty for a contravention of this subsection: $1,000.”.

Bank Account Debits Tax Administration Act 1982

Section 58:

Add at the end the following subsection:

“(3) The occupier of land or premises entered or proposed to be entered by an officer under subsection (1) shall provide the officer with all reasonable facilities and assistance for the effective exercise of powers under this section.

Penalty for a contravention of this subsection: $1,000.”.

 


SCHEDULE 4—continued

Estate Duty Assessment Act 1914

Section 44:

Add at the end the following subsections:

“(2) An officer is not entitled to enter or remain on or in any land, building or place under this section if, on being requested by the occupier of the land, building or place for proof of authority, the officer does not produce an authority in writing signed by the Commissioner stating that the officer is authorised to exercise powers under this section.

“(3) The occupier of land, or of a building or place, entered or proposed to be entered by the Commissioner, or by an officer, under subsection (1) shall provide the Commissioner or the officer with all reasonable facilities and assistance for the effective exercise of powers under this section.

Penalty for a contravention of this subsection: $1,000.”.

Income Tax Assessment Act 1936

After section 221y:

Insert the following section in Division 2 of Part VI:

Power of Commissioner to obtain information

“221yaa. Section 264 applies, for the purposes of this Division, as if the reference in paragraph (1) (b) of that section to a person’s income or assessment were a reference to a matter relevant to the administration or operation of this Division.”.

Section 263:

Add at the end the following subsections:

“(2) An officer is not entitled to enter or remain on or in any building or place under this section if, on being requested by the occupier of the building or place for proof of authority, the officer does not produce an authority in writing signed by the Commissioner stating that the officer is authorised to exercise powers under this section.

“(3) The occupier of a building or place entered or proposed to be entered by the Commissioner, or by an officer, under subsection (1) shall provide the Commissioner or the officer with all reasonable facilities and assistance for the effective exercise of powers under this section.

Penalty for a contravention of this subsection: $1,000.”.

Pay-roll Tax (Territories) Assessment Act 1971

Section 68:

Add at the end the following subsection:

“(3) The occupier of land entered or proposed to be entered by an officer under subsection (1) shall provide the officer with all reasonable facilities and assistance for the effective exercise of powers under this section.

Penalty for a contravention of this subsection: $1,000.”.


SCHEDULE 4—continued

Taxation Administration Act 1953

Section 13f:

Add at the end the following subsection:

“(4) The occupier of land entered or proposed to be entered by an officer under subsection (2) shall provide the officer with all reasonable facilities and assistance for the effective exercise of powers under this section.

Penalty for a contravention of this subsection: $1,000.”.

Section 14j:

Add at the end the following subsection:

“(3) The occupier of land entered or proposed to be entered by an officer under subsection (1) shall provide the officer with all reasonable facilities and assistance for the effective exercise of powers under this section.

Penalty for a contravention of this subsection: $1,000.”.

Tobacco Charges Assessment Act 1955

Section 41:

Add at the end the following subsections:

“(2) An officer is not entitled to enter or remain on or in any building or place under this section if, on being requested by the occupier of the building or place for proof of authority, the officer does not produce an authority in writing signed by the Commissioner stating that the officer is authorised to exercise powers under this section.

“(3) The occupier of a building or place entered or proposed to be entered by the Commissioner, or by an officer, under subsection (1) shall provide the Commissioner or the officer with all reasonable facilities and assistance for the effective exercise of powers under this section.

Penalty for a contravention of this subsection: $1,000.”.

Wool Tax (Administration) Act 1964

Section 90:

Add at the end the following subsections:

“(2) An officer is not entitled to enter or remain on or in any building or place under this section if, on being requested by the occupier of the building or place for proof of authority, the officer does not produce an authority in writing signed by the Commissioner stating that the officer is authorised to exercise powers under this section.

“(3) The occupier of a building or place entered or proposed to be entered by the Commissioner, or by an officer, under subsection (1) shall provide the Commissioner or the officer with all reasonable facilities and assistance for the effective exercise of powers under this section.

Penalty for a contravention of this subsection: $1,000.”.


NOTES

1. No. 42, 1969, as amended. For previous amendments, see No. 216, 1973; Nos. 61, 92 and 127, 1981; No. 127, 1982; No. 39, 1983; No. 123, 1984; Nos. 123 and 168, 1985; and Nos. 48 and 154, 1986.

2. No. 45, 1969, as amended. For previous amendments, see No. 216, 1973; Nos. 125 and 130, 1981; No. 125, 1982; and No. 168, 1985.

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 and 168, 1985; No. 173, 1985 (as amended by No. 49, 1986); Nos. 41, 46, 48, 49, 51, 52, 90, 109, 112 and 154, 1986; and Nos. 58, 61 and 62, 1987.

4. No. 77, 1971, as amended, For previous amendments, see No. 66, 1972; No. 216, 1973; No. 172, 1976; Nos. 55 and 62, 1978; Nos. 10, 19 and 64, 1979; Nos. 11 and 134, 1980; No. 69, 1981; Nos. 122 and 128, 1982; No. 39, 1983; No. 123, 1984; Nos. 47, 65 and 123, 1985; and Nos. 41, 46 and 48, 1986.

5. No. 1, 1953, as amended, For previous amendments, see Nos. 28, 39, 40 and 52, 1953; No. 18, 1955; No. 39, 1957; No. 95, 1959; No. 17, 1960; No. 75, 1964; No. 155, 1965; No. 93, 1966; No. 120, 1968; No. 216, 1973; No. 133, 1974; No. 37, 1976; Nos. 19 and 59, 1979; Nos. 39 and 117, 1983; No. 123, 1984; No. 65, 1985 (as amended by No. 193, 1985); Nos. 4, 47, 104, 123 and 168, 1985; Nos. 41, 46, 48, 49, 112, 144 and 154, 1986; and No. 58, 1987.

NOTE ABOUT SECTION HEADINGS

On the commencement of subsection 57 (2) of this Act, the headings to sections 10 and 57 of the Bank Account Debits Tax Administration Act 1982 are altered by omitting “banks” and substituting “financial institutions”.

[Minister’s second reading speech made in—

House of Representatives on 6 May 1987

Senate on 27 May 1987]