Federal Register of Legislation - Australian Government

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Act No. 55 of 1993 as amended, taking into account amendments up to Act No. 94 of 1995
Registered 07 Dec 2009
Start Date 09 May 1995
End Date 30 Jun 1997
Date of repeal 10 Mar 2016
Repealed by Amending Acts 1990 to 1999 Repeal Act 2016

TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993
- Updated as at 11 August 1995 (#DATE 11:08:1995)

- Updated as at 11 August 1995
*1* The Taxation (Deficit Reduction) Act (No. 2) 1993 as shown in this reprint comprises Act No. 55, 1993 amended as indicated in the Tables below.
Table of Acts
Act Date Date of Application
Number and of assent commencement saving or
year 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 1997
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 -
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ad=added or inserted am=amended rep=repealed rs=repealed and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
Heading to Subdiv. B of Div. 3 of Part 3
am. No. 94, 1995
Subdiv. C of Div. 3 of Part 3 (s. 14)
rep. No. 94, 1995
S. 14
rep. No. 94, 1995
Heading to Subdiv. B of Div. 2 of Part 4
am. No. 94, 1995
S. 18
am. No. 94, 1995
Subdiv. C of Div. 2 of Part 4 (s. 19)
rs. No. 94, 1995
Subdiv. D of Div. 2 of Part 4 (s. 20)
rep. No. 94, 1995
#ADD 28:8:1995

TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - TABLE OF PROVISIONS

TABLE

TABLE OF PROVISIONS
Section
PART 1 - PRELIMINARY
1. Short title
2. Commencement
PART 2 - AMENDMENT OF THE FRINGE BENEFITS TAX
ACT 1986 TO GIVE EFFECT TO AN INCREASE IN THE
RATE OF FBT
3. Object of Part
4. Principal Act
5. Rate of tax
6. Application of amendments
PART 3 - AMENDMENT OF THE INCOME TAX ASSESSMENT
ACT 1936
Division 1 - Principal Act
7. Principal Act
Division 2 - Amendments to allow deductions to
registered organisations for expenditure
incurred in gaining the investment component
of certain premiums
8. Object of Division
9. Interpretation
10. Insertion of new section:
116HAA. Deductions to be allowable for expenditure
incurred in gaining the investment component of
certain premiums
11. Application of amendments
Division 3 - Amendments relating to rebates for
bonuses received by holders of life assurance
policies issued by friendly societies
Subdivision A - Object of Division
12. Object of Division
Subdivision B - Increase for 1995-96 and 1996-97
13. Rebate in respect of amounts assessable under section
26AH
Subdivision D - Increase for 1997-98 and later years
15. Rebate in respect of amounts assessable under section
26AH
PART 4 - AMENDMENT OF THE INCOME TAX RATES ACT 1986
Division 1 - Principal Act
16. Principal Act
Division 2 - Registered organisations
Subdivision A - Preliminary
17. Object of Division
Subdivision B - Rate for 1994-95, 1995-96 and 1996-97
18. Rates of tax payable by companies
Subdivision C - Rate for 1997-98 and later years
19. Rates of tax payable by companies

TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - LONG TITLE

SECT

An Act to amend the law relating to taxation

TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - PART 1
PART 1 - PRELIMINARY

TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SECT 1
Short title

SECT

1. This Act may be cited as the Taxation (Deficit Reduction) Act (No. 2) 1993.*1* SEE NOTES TO FIRST ARTICLE OF THIS CHAPTER .

TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SECT 2
Commencement

SECT

2.*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) The following provisions commence on 1 July 1997:
(a) Subdivision D of Division 3 of Part 3;
(b) Subdivision C of Division 2 of Part 4. SEE NOTES TO FIRST ARTICLE OF THIS CHAPTER .

TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - PART 2
PART 2 - AMENDMENT OF THE FRINGE BENEFITS TAX ACT 1986 TO GIVE
EFFECT TO AN INCREASE IN THE RATE OF FBT

TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SECT 3
Object of Part

SECT

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

TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SECT 4
Principal Act

SECT

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

TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SECT 5
Rate of tax

SECT

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

TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SECT 6
Application of amendments

SECT

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

TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - PART 3
PART 3 - AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - DIVISION 1
Division 1 - Principal Act

TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SECT 7
Principal Act

SECT

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

TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - DIVISION 2
Division 2 - Amendments to allow deductions to registered
organisations for expenditure incurred in gaining the investment
component of certain premiums

TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SECT 8
Object of Division

SECT

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

TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SECT 9
Interpretation

SECT

9. 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;".

TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SECT 10
Insertion of new section

SECT

10. After section 116HA of the Principal Act the following section is inserted:
Deductions to be allowable for expenditure incurred in gaining the investment component of certain premiums
Premiums to which section applies
"116HAA. (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.".

TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SECT 11
Application of amendments

SECT

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

TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - DIVISION 3
Division 3 - Amendments relating to rebates for bonuses received by
holders of life assurance policies issued by friendly societies

TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SUBDIVISION A
Subdivision A - Object of Division

TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SECT 12
Object of Division

SECT

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

TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SUBDIVISION B
Subdivision B - Increase for 1995-96 and 1996-97

TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SECT 13
Rebate in respect of amounts assessable under section 26AH

SECT

13. (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.

TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SUBDIVISION D
Subdivision D - Increase for 1997-98 and later years

TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SECT 15
Rebate in respect of amounts assessable under section 26AH

SECT

15. (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 1997.

TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - PART 4
PART 4 - AMENDMENT OF THE INCOME TAX RATES ACT 1986

TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - DIVISION 1
Division 1 - Principal Act

TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SECT 16
Principal Act

SECT

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

TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - DIVISION 2
Division 2 - Registered organisations

TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SUBDIVISION A
Subdivision A - Preliminary

TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SECT 17
Object of Division

SECT

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

TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SUBDIVISION B
Subdivision B - Rate for 1994-95, 1995-96 and 1996-97

TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SECT 18
Rates of tax payable by companies

SECT

18. (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 and of the 1996-97 year of income.

TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SUBDIVISION C
Subdivision C - 1997-98 and later years

TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SECT 19
Rates of tax payable by companies

SECT

19. (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 1997-98 year of income and of all later years of income.