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Act No. 55 of 1993 as amended, taking into account amendments up to Act No. 58 of 2000
An Act to amend the law relating to taxation
Administered by: Treasury
Start Date 31 May 2000
End Date 10 Mar 2016
Date of repeal 10 Mar 2016
Repealed by Amending Acts 1990 to 1999 Repeal Act 2016

Taxation (Deficit Reduction) Act (No. 2) 1993

Act No. 55 of 1993 as amended

This compilation was prepared on 1 July 2000
taking into account amendments up to Act No. 58 of 2000

The text of any of those amendments not in force
on that date is appended in the Notes section

Prepared by the Office of Legislative Drafting,
Attorney-General’s Department, Canberra

  

  

  


Contents

Part 1—Preliminary                                                                                                             1

1............ Short title [see Note 1]........................................................................ 1

2............ Commencement [see Note 1].............................................................. 1

Part 2—Amendment of the Fringe Benefits Tax Act 1986 to give effect to an increase in the rate of FBT                                                                                                                                        2

3............ Object of Part...................................................................................... 2

4............ Principal Act....................................................................................... 2

5............ Rate of tax........................................................................................... 2

6............ Application of amendments................................................................. 2

Part 3—Amendment of the Income Tax Assessment Act 1936                 3

Division 1—Principal Act                                                                                           3

7............ Principal Act....................................................................................... 3

Division 2—Amendments to allow deductions to registered organisations for expenditure incurred in gaining the investment component of certain premiums 4

8............ Object of Division............................................................................... 4

9............ Interpretation....................................................................................... 4

10.......... Insertion of new section...................................................................... 4

11.......... Application of amendments................................................................. 5

Division 3—Amendments relating to rebates for bonuses received by holders of life assurance policies issued by friendly societies                                                               6

Subdivision A—Object of Division                                                                        6

12.......... Object of Division............................................................................... 6

Subdivision B—Increase for 1995‑96, 1996‑97, 1997‑98, 1998‑99 and 1999‑2000        6

13.......... Rebate in respect of amounts assessable under section 26AH............ 6

Subdivision D—Increase for 2000‑2001 and later years                                 6

15.......... Rebate in respect of amounts assessable under section 26AH............ 6

Part 4—Amendment of the Income Tax Rates Act 1986                              7

Division 1—Principal Act                                                                                           7

16.......... Principal Act....................................................................................... 7

Division 2—Registered organisations                                                                  8

Subdivision A—Preliminary                                                                                   8

17.......... Object of Division............................................................................... 8

Subdivision B—Rate for 1994‑95, 1995‑96, 1996‑97, 1997‑98, 1998‑99 and 1999‑2000          8

18.......... Rates of tax payable by companies...................................................... 8

Subdivision C—Rate for 2000‑01 and later years                                             8

19.......... Rates of tax payable by companies...................................................... 8

Notes                                                                                                                                             9

 


An Act to amend the law relating to taxation

Part 1Preliminary

1  Short title [see Note 1]

                   This Act may be cited as the Taxation (Deficit Reduction) Act (No. 2) 1993.

2  Commencement [see Note 1]

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

             (2)  Subdivision B of Division 3 of Part 3 commences on 1 July 1995.

             (3)  Subdivision D of Division 3 of Part 3 commences on 1 July 2000.

                     (4)  Subdivision C of Division 2 of Part 4 commences on 1 July 2000.


Part 2Amendment of the Fringe Benefits Tax Act 1986 to give effect to an increase in the rate of FBT

3  Object of Part

                   The object of this Part is to increase the rate of fringe benefits tax from 48.25% to 48.4%.

4  Principal Act

                   In this Part, Principal Act means the Fringe Benefits Tax Act 1986.

5  Rate of tax

                   Section 6 of the Principal Act is amended by omitting “48.25%” and substituting “48.4%”.

6  Application of amendments

                   The amendments made by this Part apply to the year of tax beginning on 1 April 1994 and all later years of tax.


Part 3Amendment of the Income Tax Assessment Act 1936

Division 1Principal Act

7  Principal Act

                   In this Part, Principal Act means the Income Tax Assessment Act 1936.


Division 2Amendments to allow deductions to registered organisations for expenditure incurred in gaining the investment component of certain premiums

8  Object of Division

                   The object of this Division is to allow deductions to registered organisations for expenditure incurred in gaining the investment component of certain premiums.

9  Interpretation

                   Section 116E of the Principal Act is amended by inserting the following definitions in subsection (1):

                   investment component, in relation to a premium received in respect of a life assurance policy, means so much of the premium as does not consist of a risk component.

                   risk component, in relation to a premium received in respect of a life assurance policy, means the risk component (if any) of the premium worked out on the basis specified in the regulations.

10  Insertion of new section

                   After section 116HA of the Principal Act the following section is inserted:

116HAA  Deductions to be allowable for expenditure incurred in gaining the investment component of certain premiums

Premiums to which section applies

             (1)  This section applies to premiums received in respect of life assurance policies other than:

                     (a)  superannuation premiums; or

                     (b)  premiums received in respect of eligible policies; or

                     (c)  specified roll-over amounts; or

                     (d)  premiums exempt from tax under section 23AH.

Assumption to be made in determining allowable deductions

             (2)  For the purposes of determining the deductions allowable to a registered organization, the investment component of a premium to which this section applies is to be treated as assessable income.

Actuary’s certificate

             (3) This section does not apply to premiums derived by a registered organization in a year of income unless the organization obtains a certificate by an authorised actuary with respect to the operation of this section. The certificate must be in a form approved in writing by the Commissioner. The organization must obtain the certificate:

                     (a)  before the date of lodgment of the organization’s return of income of the year of income; or

                     (b)  within such further time as the Commissioner allows.

Definition

             (4)  In this section:

authorised actuary means a Fellow or an Accredited Member of the Institute of Actuaries of Australia.

11  Application of amendments

                   The amendments made by this Division apply in relation to expenditure incurred by a registered organisation on or after 1 July 1994.


Division 3Amendments relating to rebates for bonuses received by holders of life assurance policies issued by friendly societies

Subdivision AObject of Division

12  Object of Division

                   The object of this Division is to increase the rebates for bonuses paid to holders of life assurance policies issued by friendly societies.

Subdivision BIncrease for 1995‑96, 1996‑97, 1997‑98, 1998‑99 and 1999‑2000

13  Rebate in respect of amounts assessable under section 26AH

             (1)  Section 160AAB of the Principal Act is amended by omitting “30%” from paragraph (a) of the definition of statutory percentage in subsection (1) and substituting “33%”.

             (2)  The amendments made by subsection (1) apply to amounts received (within the meaning of section 26AH of the Principal Act) on or after 1 July 1995.

Subdivision DIncrease for 2000‑2001 and later years

15  Rebate in respect of amounts assessable under section 26AH

             (1)  Section 160AAB of the Principal Act is amended:

                     (a)  by omitting from subsection (1) the definition of statutory percentage;

                     (b)  by omitting from subsections (2) to (6) (inclusive) “the statutory percentage” (wherever occurring) and substituting “39%”.

             (2)  The amendments made by subsection (1) apply to amounts received (within the meaning of section 26AH of the Principal Act) on or after 1 July 2000.


Part 4Amendment of the Income Tax Rates Act 1986

Division 1Principal Act

16  Principal Act

                   In this Part, Principal Act means the Income Tax Rates Act 1986.


Division 2Registered organisations

Subdivision APreliminary

17  Object of Division

                   The object of this Division is to increase the rate of tax payable by a registered organisation in respect of its eligible insurance business.

Subdivision BRate for 1994‑95, 1995‑96, 1996‑97, 1997‑98, 1998‑99 and 1999‑2000

18  Rates of tax payable by companies

             (1)  Section 23 of the Principal Act is amended by omitting from paragraph (4)(b) “30%” and substituting “33%”.

             (2)  The amendments made by subsection (1) apply to assessments in respect of income of the 1994-95 year of income, of the 1995-96 year of income, of the 1996‑97 year of income, of the 1997‑98 year of income, of the 1998‑99 year of income and of the 1999‑2000 year of income.

Subdivision CRate for 2000‑01 and later years

19  Rates of tax payable by companies

             (1)  Section 23 of the Principal Act is amended by omitting from paragraph (4)(b) “33%” and substituting “39%”.

             (2)  The amendment made by subsection (1) applies to assessments in respect of income of the 2000‑01 year of income and of all later years of income.


Notes to the Taxation (Deficit Reduction) Act (No. 2) 1993

Note 1

The Taxation (Deficit Reduction) Act (No. 2) 1993 as shown in this compilation comprises Act No. 55, 1993 amended as indicated in the Tables below.

Table of Acts

 

Act

Number
and year

Date
of Assent

Date of commencement

Application, saving or transitional provisions

 

Taxation (Deficit Reduction) Act (No. 2) 1993

55, 1993

27 Oct 1993

S. 13: 1 July 1995
Ss. 15 and 19: 1 July 2000  Remainder: Royal Assent

 

Taxation Laws Amendment (Budget Measures) Act 1995

94, 1995

27 July 1995

Schedule 3 (Part 2 (items 5, 6)): 1 July 1995
Schedule 9: Royal Assent
Remainder: 9 May 1995

Taxation Laws Amendment Act (No. 4) 1997

174, 1997

21 Nov 1997

Schedule 8: 1 July 1997
Remainder: Royal Assent

Taxation Laws Amendment Act (No. 2) 2000

58, 2000

31 May 2000

Schedule 7: Royal Assent (a)

 


(a)     The Taxation (Deficit Reduction) Act (No. 2) 1993 was amended by Schedule 7 only of the Taxation Laws Amendment Act (No. 2) 2000, subsection 2(1) of which provides as follows:

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


Table of Amendments

ad. = added or inserted      am. = amended      rep. = repealed      rs. = repealed and substituted

Provision affected

How affected

S. 2...........................................

am. No. 94, 1995; No. 174, 1997; No. 58, 2000

Heading to Subdiv. B of.........
Div. 3 of Part 3

am. No. 94, 1995

rs. No. 174, 1997

 

 

Subdiv. C of Div. 3 of..............

Part 3 (s. 14)

rep. No. 94, 1995

S. 14.........................................

rep. No. 94, 1995

Heading to Subdiv. D of .......
Div. 3 of Part 3

rs. No. 174, 1997

S. 15.........................................

am. No. 174, 1997

Heading to Subdiv. B of.........
Div. 2 of Part 4

am. No. 94, 1995

rs. No. 174, 1997; No. 58, 2000

 

 

S. 18.........................................

am. No. 94, 1995; No. 174, 1997; No. 58, 2000

Heading to Subdiv. C of.........
Div. 2 of Part 4

rs. No. 174, 1997; No. 58, 2000

Subdiv. C of Div. 2 of..............

Part 4 (s. 19)

rs. No. 94, 1995

S. 19.........................................

rs. No. 94, 1995

am. No. 174, 1997; No. 58, 2000

Subdiv. D of Div. 2 of ............

Part 4 (s. 20)

rep. No. 94, 1995

S. 20.........................................

rep. No. 94, 1995