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Taxation Laws Amendment Act 1985

Act No. 49 of 1985 as amended, taking into account amendments up to Act No. 75 of 2010
An Act to amend the law relating to taxation
Administered by: Treasury
Registered 13 Sep 2010
Start Date 29 Jun 2010
End Date 10 Dec 2015
Date of repeal 10 Dec 2015
Repealed by Amending Acts 1980 to 1989 Repeal Act 2015

Taxation Laws Amendment Act 1985

Act No. 49 of 1985 as amended

This compilation was prepared on 13 September 2010
taking into account amendments up to Act No. 75 of 2010

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

The operation of amendments that have been incorporated may be
affected by application provisions that are set out in the Notes section

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

  

  


TABLE OF PROVISIONS

 

PART I - PRELIMINARY

Section

  1.       Short title [see Note 1]

  2.       Commencement [see Note 1]

PART II - AMENDMENTS OF THE INCOME TAX ASSESSMENT ACT 1936

  3.       Principal Act

  4.       Officers to observe secrecy

  5.       Insertion of new section-

             24BA.   Application of Division

  6.       Amounts received on retirement or termination of employment in

           lieu of long service leave

  7.       Assessable income to include value of benefits received from or

           in connection with certain superannuation funds

  8.       Assessable income to include value of certain benefits received

           from or in connection with section 23F superannuation funds

  9.       Interpretation

  10.      Rebate on dividends

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

  12.      Losses of previous years

  13.      Interpretation

  14.      Interpretation

  15.      Definitions

  16.      Repeal of section 110A

  17.      Exemption of income attributable to superannuation policies and

           certain annuities

  18.      Repeal of section 115 and substitution of new section-

             115.    Deductions in relation to calculated liabilities

  19.      Repeal of sections 115A, 116A, 116B and 116C

  20.      Definitions

  21.      Repeal of section 121C

  22.      Assessment of income of superannuation funds to which section 23F

           applies

  23.      Repeal of section 121D

  24.      Assessment of income of other superannuation funds

  25.      Assessment of income of certain superannuation funds

  26.      Repeal of section 121DE

  27.      Diverted income and diverted trust income

  28.      Rebates for dependants

  29.      Life insurance premiums, &c.

  30.      Insertion of new section-

             160ACD. Rebate in respect of certain Territory income

  31.      Remission of certain amounts

  32.      Insertion of new section-

             221U.   Review of decisions

  33.      Notification and review of decisions

  34.      Medicare levy

  35.      Prescribed persons

  36.      Schedule 2

  37.      Other amendments

  38.      Application and transitional

PART III - AMENDMENTS OF THE TAXATION (INTEREST ON OVERPAYMENTS) ACT

1983

  40.      Principal Act

  41.      Interpretation

  42.      Amount of interest

  43.      Application

SCHEDULE

MINOR AMENDMENTS OF THE INCOME TAX ASSESSMENT ACT 1936


TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985 - LONG TITLE

 

                  An Act to amend the law relating to taxation

 

PART I - PRELIMINARY

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 1

Short title [see Note 1]

 

  1. This Act may be cited as the Taxation Laws Amendment Act 1985.

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 2

Commencement [see Note 1]

 

  2. This Act shall come into operation on the day on which it receives the

Royal Assent.

 

PART II - AMENDMENTS OF THE INCOME TAX ASSESSMENT ACT 1936

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 3

Principal Act

 

  3. The Income Tax Assessment Act 1936*1* is in this Part referred to as the

Principal Act.

*1* 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, 60, 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; and Nos. 14, 47, 115, 123 and 124, 1984.

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 4

Officers to observe secrecy

 

  4. Section 16 of the Principal Act is amended-

  (a)  by omitting from sub-section (2) "any such information so acquired by

him" and substituting "any information respecting the affairs of another

person acquired by the officer as mentioned in the definition of 'officer' in

sub-section (1)";

  (b)  by omitting paragraph (4) (ga) and substituting the following

paragraph:

     "(ga)  the Australian Statistician for the purposes of the Census and

Statistics Act 1905, being-

          (i)  in relation to a person who is an employer (whether or not the

person is also a business person), information as to-

            (A) the name and address of the person;

            (B) the name or description of the industry, trade, business,

calling, service, profession or occupation in which the person is an employer;

and

            (C) the number of males and the number of females who are

employees of the person for the purposes of Division 2 of Part VI of this Act;

and

         (ii)  in relation to a person who is a business person (whether or

not the person is also an employer)-

            (A) information as to the name and address of the person;

            (B) information as to the name or description of the business;

            (C) such information in relation to the gross receipts of the

business as the Australian Statistician requires for or in connection with the

conduct of periodic surveys of industries; and

            (D) such other information in relation to the business as the

Australian Statistician requires for or in connection with the compilation of

the Australian national accounts;"; and

  (c)  by inserting after sub-section (4) the following sub-section:

     "(4AA) In paragraph (4) (ga)-

     'business person' means a person who is carrying on a business, whether

alone, in partnership or otherwise;

     'description', in relation to a business, includes a description or

specification of a category in which the business is included;

     'employer' means a person who is an employer within the meaning of

Division 2 of Part VI.".

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 5

 

  5. After section 24B of the Principal Act the following section is inserted:

Application of Division

  "24BA. This Division applies to assessments in respect of income of the year

of income commencing on 1 July 1985 and of all subsequent years of income as

if-

  (a)  the definition of 'prescribed Territory' in sub-section 24B (1) were

omitted and the following definition were substituted:

     ' ''prescribed Territory'' means Norfolk Island or the Territory of Cocos

(Keeling) Islands.'; and

  (b)  sub-section 24L (5) were omitted and the following sub-section were

substituted:

     '(5) In sub-sections (1), (3), (4), (4A), (4B) and (4C), "Australia",

"resident" and "non-resident" have the meanings that those expressions would

have if sub-section 7A (2) did not refer to Norfolk Island or the Territory of

Cocos (Keeling) Islands.'.".

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 6

Amounts received on retirement or termination of employment in lieu of long

service leave

 

  6. Section 26AD of the Principal Act is amended by adding at the end the

following sub-section:

  "(12) Where-

  (a)  but for this sub-section, an amount would be included in the assessable

income of a taxpayer in respect of an amount to which this section applies (in

this sub-section referred to as the 'lump sum amount'); and

  (b)  but for section 24BA, no amount, or a lesser amount, would be included

in the assessable income of the taxpayer in respect of the lump sum amount,

this section has effect in relation to the lump sum amount as if-

  (c)  references in the preceding provisions of this section to 15 August

1978 were references to 30 June 1985; and

  (d)  sub-section (5) were omitted.".

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 7

Assessable income to include value of benefits received from or in

connection with certain superannuation funds

 

  7. Section 26AF of the Principal Act is amended by inserting "as in force at

any time before the commencement of section 21 of the Taxation Laws Amendment

Act 1985" after "section 121C" in the definition of "paragraph 23 (ja) fund"

in sub-section (3).

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 8

Assessable income to include value of certain benefits received from or in

connection with section 23F superannuation funds

 

  8. Section 26AFA of the Principal Act is amended by omitting from

sub-section (1) ", notwithstanding paragraph 26 (d),".

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 9

Interpretation

 

  9. Section 27A of the Principal Act is amended by adding at the end the

following sub-section:

  "(14) Where an amount paid to a taxpayer (in this sub-section referred to as

the 'received amount'), being an eligible termination payment, an annuity or a

payment made as a supplement to an annuity, would, but for section 24BA and

assuming that-

  (a)  paragraph 27C (1) (d) did not apply in relation to the received amount;

and

  (b)  no part of the received amount was taken to be applied in accordance

with section 27D,

be wholly or partly exempt from tax because of Division 1A, the following

provisions have effect:

  (c)  this Subdivision has effect in relation to the received amount as if-

      (i)  references in this Subdivision to 30 June 1983 were references to

30 June 1985; and

     (ii)  references in this Subdivision (other than in sub-paragraph (a)

        (ii) of the definition of 'superannuation fund' in sub-section (1)) to

1 July 1983 were references to 1 July 1985; and

  (d)  no amount shall be included in the assessable income of the taxpayer

under sub-section 27C (1) in relation to the received amount.".

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 10

Rebate on dividends

 

  10. Section 46 of the Principal Act is amended by omitting from sub-section

(9) "sections 116AA and 116A" and substituting "section 116AA".

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 11

Rebate on dividends paid as part of dividend stripping operation

 

  11. Section 46A of the Principal Act is amended by omitting sub-section

(16).

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 12

Losses of previous years

 

  12. Section 80 of the Principal Act is amended by omitting from paragraph

(5) (m) "Income Tax Laws Amendment Act 1981" and substituting "Taxation Laws

Amendment Act 1985".

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 13

Interpretation

 

  13. Section 82AAS of the Principal Act is amended by omitting "section 121C

and" from the definition of "qualifying superannuation fund" in sub-section

(1).

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 14

Interpretation

 

  14. Section 82KH of the Principal Act is amended-

  (a)  by omitting "or" from paragraph (t) of the definition of "relevant

expenditure" in sub-section (1);

  (b)  by adding at the end of the definition of "relevant expenditure" in

sub-section (1) the following paragraphs:

     "; (v) expenditure (other than expenditure to which a preceding paragraph

of this definition applies) incurred by the taxpayer in respect of a unit of

industrial property to the extent to which the amount of that expenditure is

taken into account, or would, apart from sub-sections 124R (2) and (3), be

taken into account, in calculating the residual value of the unit of

industrial property in ascertaining whether, apart from section 82KL, a

deduction would be allowable to the taxpayer under section 124M or 124N in

respect of the residual value of the unit of industrial property; or

      (w) a loss or outgoing (other than a loss or outgoing referred to in

sub-section 52A (1) or to which a preceding paragraph of this definition

applies) incurred by the taxpayer to the extent to which a deduction would,

apart from section 82KL, be allowable to the taxpayer under section 51 in

respect of the loss or outgoing;";

  (c)  by omitting from paragraph (1AD) (a) "or (n)" and substituting ", (n)

or (v)";

  (d)  by omitting sub-paragraphs (1F) (b) (i) and (ii) and substituting the

following sub-paragraphs:

      "(i)  in a case to which sub-paragraph (ii) does not apply-

         (A) the benefit in respect of which the relevant expenditure was

incurred; and

         (B) any benefit that resulted directly or indirectly from the benefit

in respect of which the relevant expenditure was incurred and is a benefit

that, in the opinion of the Commissioner, might reasonably be expected to have

resulted if the benefit in respect of which the relevant expenditure was

incurred had been obtained otherwise than by reason of, as a result of or as

part of a tax avoidance agreement; or

     (ii)  in a case where the relevant expenditure is relevant expenditure to

which paragraph (w) of the definition of 'relevant expenditure' in sub-section

(1) applies-any benefit that resulted directly or indirectly from the

incurring of the relevant expenditure and is a benefit that, in the opinion of

the Commissioner, might reasonably be expected to have resulted if the

relevant expenditure had been incurred otherwise than by reason of, as a

result of or as part of a tax avoidance agreement; and";

  (e)  by inserting in paragraph (1F) (c) ", (v) or (w)" after "(s)";

  (f)  by omitting from paragraph (1G) (s) "and" (last occurring);

  (g)  by adding at the end of sub-section (1G) the following word and

paragraph:

     "; and (u) in a case where the relevant expenditure was incurred by the

taxpayer in respect of a unit of industrial property and is relevant

expenditure to which paragraph (v) of the definition of 'relevant expenditure'

in sub-section (1) applies-the ownership by the taxpayer of the unit of

industrial property.";

  (h)  by omitting from paragraph (1L) (t) "and"; and

   (j)  by adding at the end of sub-section (1L) the following paragraphs:

     "; (v) in a case where paragraph (v) of the definition of 'relevant

expenditure' in sub-section (1) applies in relation to each of those

amounts-those amounts were incurred in respect of the same unit of industrial

property; and

      (w) in a case where paragraph (w) of the definition of 'relevant

expenditure' in sub-section (1) applies in relation to each of those

amounts-those amounts were incurred in respect of the same source of

assessable income or in carrying on the same business.".

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 15

Definitions

 

  15. Section 110 of the Principal Act is amended by omitting the definitions

of "exempt statutory fund" and "overseas policy".

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 16

Repeal of section 110A

 

  16. Section 110A of the Principal Act is repealed.

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 17

Exemption of income attributable to superannuation policies and certain

annuities

 

  17. Section 112A of the Principal Act is amended by omitting from

sub-section (1) ", being a company in relation to which section 110A

applies,".

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 18

 

  18. (1) Section 115 of the Principal Act is repealed and the following

section is substituted:

Deductions in relation to calculated liabilities

  "115. (1) An amount is allowable as a deduction from the assessable income

of a life assurance company of a year of income ascertained in accordance with

the formula

                        AB

                      ------, where-

                       100C

  A  is the calculated liabilities of the company as at the end of the year of

income;

  B  is the value, as at the end of the year of income, of the assets included

in the insurance funds of the company, being assets from which the company

derives assessable income; and

  C  is the value, as at the end of the year of income, of all the assets

included in the insurance funds of the company.

  "(2) Where, in relation to a year of income, the assessable income of a life

assurance company, by reason of the operation of section 112A, does not

include a portion of the income derived during that year of income from the

assets included in an Australian statutory fund of the company or in any other

fund maintained by the company in respect of the life assurance business of

the company, the value of the assets included in that fund, being assets from

which the company derives assessable income, shall, in the calculation of the

value represented by component B in the formula in sub-section (1) in its

application in relation to the company in relation to that year of income, be

deemed to be the amount that bears to the value of the assets included in that

fund, being assets from which the company derives assessable income, the same

proportion as the amount of the assessable income derived from assets of that

fund during that year of income bears to the amount that would have been the

amount of the assessable income so derived if that section did not apply in

relation to the company in relation to that year of income.

  "(3) Where a company is a life assurance company during part only of a year

of income-

  (a)  the deduction allowable under this section from the assessable income

of the company of that year of income shall be such amount as bears to the

amount of the deduction that, but for this sub-section, would have been

allowable the same proportion as the period during which that company was a

life assurance company during that year of income bears to a year; and

  (b)  if the company was not a life assurance company at the end of that year

of income, the last day during that year of income on which the company was a

life assurance company shall, for the purposes of this section, be deemed to

be, in relation to that company, the end of the year of income.".

  (2) Notwithstanding the amendment made by sub-section (1) in its application

in accordance with sub-section 38 (1), the deduction allowable under section

115 of the Income Tax Assessment Act 1936 from the assessable income of a life

assurance company of the transitional year of income is an

amount ascertained in accordance with the formula A B A C D -----------,

where-

                                                      E

  A  is the former section 115 amount in relation to the company in relation

to the transitional year of income;

  B  is the number of days in the transitional year of income before 11

September 1984 during which the company was a life assurance company;

  C  is the new section 115 amount in relation to the company in relation to

the transitional year of income;

  D  is the number of days in the transitional year of income after 10

September 1984 during which the company was a life assurance company; and

  E  is the number of days in the transitional year of income.

  (3) In the application of sub-paragraph 116AA (1) (a) (ii) of the Income Tax

Assessment Act 1936 in relation to a deduction under section 115 of that Act

that is ascertained in accordance with sub-section (2) of this section, the

reference in that sub-paragraph to the end of the year of income shall, for

the purposes of the calculation of the former section 115 amount, be read as a

reference to 10 September 1984.

  (4) In this section-

  "former section 115 amount", in relation to a company in relation to the

transitional year of income, means the amount that would have been allowable

as a deduction from the assessable income of the company of the transitional

year of income under section 115 of the Principal Act as in force immediately

before the commencement of this section if-

     (a)  for the purposes of the application of sections 110A and 114,

paragraphs 115 (1) (a) and (4) (a) and sub-section 115 (8) (other than

paragraph (a)) of the Principal Act as so in force, the transitional year of

income had ended on 10 September 1984; and

     (b)  section 115 of the Principal Act as so in force were amended-

         (i) by omitting from sub-section (5) "the period of 12 months ending

6 months after the end of the year of income" and substituting "the period of

6 months ending on 10 September 1984"; and

        (ii) by omitting paragraph (8) (a);

  "new section 115 amount", in relation to a company in relation to the

transitional year of income, means the amount that, but for sub-section (2) of

this section, would be allowable as a deduction from the assessable income of

the company of the transitional year of income under section 115 of the

Principal Act as amended by sub-section (1) of this section if section 115 of

the Principal Act as so amended were amended by omitting paragraph (3) (a);

  "transitional year of income" means the year of income in which 11 September

1984 occurred.

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 19

Repeal of sections 115A, 116A, 116B and 116C

 

  19. Sections 115A, 116A, 116B and 116C of the Principal Act are repealed.

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 20

Definitions

 

  20. Section 121B of the Principal Act is amended by omitting the definitions

of "investment income" and "transaction".

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 21

Repeal of section 121C

 

  21. Section 121C of the Principal Act is repealed.

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 22

Assessment of income of superannuation funds to which section 23F applies

 

  22. Section 121CA of the Principal Act is amended by omitting ", or, but for

section 121C, would be,".

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 23

Repeal of section 121D

 

  23. Section 121D of the Principal Act is repealed.

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 24

Assessment of income of other superannuation funds

 

  24. Section 121DA of the Principal Act is amended by omitting ", 121D".

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 25

Assessment of income of certain superannuation funds

 

  25. Section 121DAB of the Principal Act is amended by omitting from

paragraph (b) ", 121CB or 121D" and substituting "or 121CB".

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 26

Repeal of section 121DE

 

  26. Section 121DE of the Principal Act is repealed.

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 27

Diverted income and diverted trust income

 

  27. Section 121G of the Principal Act is amended-

  (a)  by adding at the end of paragraphs (4) (c), (5) (c) and (6) (c) "and";

and

  (b)  by omitting paragraphs (4) (d), (5) (d) and (6) (d).

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 28

Rebates for dependants

 

  28. Section 159J of the Principal Act is amended-

  (a)  by omitting from sub-section (5D) "any part of the year of income" and

substituting "the whole or that part of the year of income, as the case may

be"; and

  (b)  by inserting "family income supplement," before "family allowance" in

paragraph (a) and sub-paragraph (b) (i) of the definition of "separate net

income" in sub-section (6).

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 29

Life insurance premiums, &c.

 

  29. Section 159R of the Principal Act is amended-

  (a)  by omitting from paragraph (8) (a) "section 121C and"; and

  (b)  by omitting all the words after "paragraph 23 (jaa)" from sub-paragraph

        (b) (i) of the definition of "policy of life insurance" in sub-section

(9) and substituting "or (ja); or".

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 30

 

  30. After section 160ACC of the Principal Act the following section is

inserted:

Rebate in respect of certain Territory income

  "160ACD. (1) Where the amount of tax that would, but for this section and

Part VIIB, be payable by a taxpayer (not being a company other than a company

in the capacity of trustee) in respect of income of a transitional year of

income exceeds the amount of tax that would be so payable by the taxpayer in

respect of income of that year of income if section 24BA had not been enacted

and Part I of Schedule 2 did not include a reference to the Territory of

Christmas Island, the taxpayer is entitled, in the taxpayer's assessment in

respect of income of that year of income, to a rebate of tax of an amount

equal to-

  (a)  in the case of the year of income commencing on 1 July 1985-75% of the

amount of the excess;

  (b)  in the case of the year of income commencing on 1 July 1986-50% of the

amount of the excess; and

  (c)  in the case of the year of income commencing on 1 July 1987-25% of the

amount of the excess.

  "(2) This section does not apply to an assessment under sub-section 98 (3)

or (4).

  "(3) In this section, 'transitional year of income' means the year of income

commencing on 1 July 1985, 1 July 1986 or 1 July 1987.".

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 31

Remission of certain amounts

 

  31. Section 221N of the Principal Act is amended by adding at the end the

following sub-section:

  "(3) Where the Commissioner makes a decision to remit part only of an amount

payable as mentioned in sub-section (2), or not to remit any part of such an

amount, the Commissioner shall give notice in writing of the decision to the

person by whom the amount is, or but for the remission would be, payable.".

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 32

 

  32. After section 221TA of the Principal Act the following section is

inserted:

Review of decisions

  "221U. (1) Where a person who has been notified of a decision of the

Commissioner made under sub-section 221N  (2) (other than in relation to an

amount payable under sub-section 221EAA (2)) is dissatisfied with the

decision, the person may, within 60 days after service on the person of notice

of the decision of the Commissioner, post to, or lodge with, the Commissioner

an objection in writing against the decision stating fully and in detail the

grounds on which the person relies.

  "(2) The provisions of Division 2 of Part V (other than section 185) apply

in relation to an objection made under sub-section (1) in like manner as those

provisions apply in relation to an objection against an assessment.".

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 33

Notification and review of decisions

 

  33. Section 221YHT of the Principal Act is amended by omitting from

sub-section (2) "section 221YHL (other than sub-section (1))" and substituting

"sub-section 221YHL(2) (other than in relation to an amount payable under

sub-section 221YHH (2))".

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 34

Medicare levy

 

  34. Section 251S of the Principal Act is amended by adding at the end the

following sub-section:

  "(3) In determining for the purposes of paragraph (1) (a) or (b) whether, in

relation to the year of income commencing on 1 July 1985 or any subsequent

year of income, a person was a resident of Australia otherwise than by virtue

of sub-section 7A (2), that sub-section shall be applied as if the reference

in that sub-section to the Territory of Christmas Island were omitted.".

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 35

Prescribed persons

 

  35. Section 251U of the Principal Act is amended by inserting after

sub-section (1) the following sub-section:

  "(1A) In determining for the purposes of paragraph (1) (d) whether, in

relation to the year of income commencing on 1 July 1985 or any subsequent

year of income, a person was a resident solely by virtue of sub-section 7A

(2), that sub-section shall be applied as if the reference in that sub-section

to the Territory of Christmas Island were omitted.".

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 36

Schedule 2

 

  36. Schedule 2 to the Principal Act is amended by adding at the end of Part

I the following paragraph:

  "8. The Territory of Christmas Island.".

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 37

Other amendments

 

  37. The Principal Act is further amended as set out in the Schedule.

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 38

Application and transitional

 

  38. (1) The amendments made by sections 7, 10, 11, 13, 15 to 27 (inclusive)

and 29 apply to assessments in respect of income of the year of income in

which 11 September 1984 occurred and of all subsequent years of income.

  (2) The amendments made by sections 12 and 14 apply in relation to a loss,

outgoing or expenditure incurred after 24 September 1978.

  (3) Where-

  (a)  in the making of an assessment, a tax benefit has not been allowed to a

taxpayer in respect of a loss or outgoing or expenditure to which paragraph

        (v) or (w) of the definition of "relevant expenditure" in sub-section

82KH (1) of the Income Tax Assessment Act 1936 applies;

  (b)  on or before the date of commencement of this section, the taxpayer has

posted to or lodged with the Commissioner an objection in writing against the

assessment; and

  (c)  within 60 days after the date of commencement of this section, the

taxpayer posts to or lodges with the Commissioner an application in writing to

amend the objection to include in the grounds of objection the ground that

section 82KL of the Income Tax Assessment Act 1936 does not operate to deem a

tax benefit not to be allowable to the taxpayer in respect of that loss or

outgoing or that expenditure,

that ground of objection shall, for all purposes of the Income Tax Assessment

Act 1936, be taken to be stated in the taxpayer's objection.

  (4) The amendment made by paragraph 28 (a) applies to assessments in respect

of income of the year of income that commenced on 1 July 1984 and of all

subsequent years of income.

  (5) The amendments made by paragraph 28 (b) apply to payments of family

income supplement made on or after 1 May 1984.

  (6) Notwithstanding sub-section 221U (1) of the Principal Act as amended by

this Act, where a person was notified before the commencement of this Act of a

decision of the Commissioner made under sub-section 221N (2) of the Principal

Act (other than in relation to an amount payable under sub-section 221EAA (2)

of that Act), the person may post or lodge an objection under that sub-section

against the decision within 60 days after the commencement of this section.

  (7) The amendment made by section 36 applies to assessments in respect of

income of the year of income commencing on 1 July 1985 and of all subsequent

years of income.

 

PART III - AMENDMENTS OF THE TAXATION (INTEREST ON OVERPAYMENTS)

ACT 1983

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 40

Principal Act

 

  40. The Taxation (Interest on Overpayments) Act 1983*2* is in this Part

referred to as the Principal Act.

*2* No. 12, 1983, as amended. For previous amendments, see No. 123, 1984; and

No. 4, 1985.

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 41

Interpretation

 

  41. Section 3 of the Principal Act is amended-

  (a)  by omitting "1982)" from sub-paragraph (a) (ii) of the definition of

"objection" in sub-section (1) and substituting "1982";

  (b)  by omitting "1985" from sub-paragraph (a) (iii) of the definition of

"objection" in sub-section (1) and substituting "1985)";

  (c)  by omitting "or 220 (3) or (7)" from paragraph (b) of the definition of

"objection" in sub-section (1) and substituting "220 (3), 220 (7), 221U (1) or

221YHT (2)"; and

  (d)  by inserting after paragraph (b) of the definition of "relevant tax" in

sub-section (1) the following paragraphs:

    "(ba)  an amount payable to the Commissioner under paragraph 221EAA (1)

        (a), sub-sub-paragraph 221F (12) (b) (ii) (A) or sub-paragraph 221G

(4A) (d) (i) of the Income Tax Assessment Act 1936;

     (bb)  an amount payable to the Commissioner under paragraph 221YHH (1)

        (a), sub-sub-paragraph 221YHJ (1) (b) (ii) (A) or sub-section 221YHK

(1) of the Income Tax Assessment Act 1936;".

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 42

Amount of interest

 

  42. Section 10 of the Principal Act is amended-

  (a)  by omitting "or" (last occurring) from sub-sub-paragraph (1) (a) (iii)

            (A); and

  (b)  by omitting sub-sub-paragraph (1) (a) (iii) (B) and substituting the

following sub-sub-paragraphs:

     "(B) the relevant tax is relevant tax of a kind referred to in paragraph

        (ba) of the definition of 'relevant tax' in sub-section 3 (1)-14

December 1984;

     (C) the relevant tax is relevant tax of a kind referred to in paragraph

        (bb) of the definition of 'relevant tax' in sub-section 3 (1)-1

September 1983; or

     (D) none of sub-sub-paragraphs (A), (B) and (C) is applicable in relation

to the relevant tax-20 December 1984.".

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985

- SECT 43

Application

 

  43. In the case of amounts of relevant tax to which paragraph (ba) or

paragraph (bb) of the definition of "relevant tax" in sub-section 3 (1) of the

Principal Act as amended by this Part applies, that Act as so amended applies

to amounts paid to the Commissioner on or after 14 December 1984, or on or

after 1 September 1983, respectively.

                                ----------------

 

TAXATION LAWS AMENDMENT ACT 1985No. 49, 1985 - SCHEDULE

 

                                    SCHEDULE

                                                                     Section 37

           MINOR AMENDMENTS OF THE INCOME TAX ASSESSMENT ACT 1936

Sub-section 16 (5BA)-

  Omit "and Technology".

Sub-section 16 (5C)-

  Omit "and Technology".

Sub-section 23AD (1) (paragraph (b) of the definition of "excepted

payment")-

  Omit ", Part IVAAA, Part IVAA (to the extent to which that Part applies in

relation to a pension under Part IV or a benefit under Part IVAAA) or

sub-section 135T (6) or (7)", substitute "or Part IVAAA".

Sub-section 23AD (1) (paragraph (a) of the definition of "excepted

pension")-

  Omit ", Part IVAA (to the extent to which that Part applies in relation to a

pension under Part III)".

Sub-section 26AG (10)-

  Re-letter paragraphs (c) (second occurring), (d), (e) and (f) as paragraphs

        (d), (e), (f) and (g) respectively.

Sub-paragraph 78 (1) (a) (lv)-

  Omit "and Youth Affairs".

Paragraph 78 (5) (a)-

  Omit "and Youth Affairs".

Paragraph 78 (5) (b)-

  Omit "and Youth Affairs".

Sub-section 78 (6DA)-

  Omit "Home Affairs and Environment", substitute "Arts, Heritage and

Environment".

Sub-section 78 (6DB)-

  Omit "Home Affairs and Environment", substitute "Arts, Heritage and

Environment".

Sub-section 124K (1) (definition of "Australian film")-

  Omit "Home Affairs and Environment", substitute "Arts, Heritage and

Environment".

Sub-section 124K (1A)-

  Omit "Home Affairs and Environment", substitute "Arts, Heritage and

Environment".

Sub-section 124ZAA (1) (definition of "Minister")-

  Omit "Home Affairs and Environment", substitute "Arts, Heritage and

Environment".

Section 179-

  Repeal the section.


Notes to the Taxation Laws Amendment Act 1985

Note 1

The Taxation Laws Amendment Act 1985 as shown in this compilation comprises
Act No. 49, 1985 amended as indicated in the Tables below.

Table of Acts

Act

Number
and year

Date
of Assent

Date of commencement

Application, saving or transitional provisions

Taxation Laws Amendment Act 1985

49, 1985

30 May 1985

30 May 1985

 

Tax Laws Amendment (2010 Measures No. 2) Act 2010

75, 2010

28 June 2010

Schedule 6 (item 21): 29 June 2010


Table of Amendments

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

Provision affected

How affected

S. 39.......................................

rep. No. 75, 2010