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Tax Laws Amendment (2011 Measures No. 2) Act 2011

Authoritative Version
  • - C2011A00041
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Act No. 41 of 2011 as made
An Act to amend the law relating to taxation and superannuation, and for related purposes
Administered by: Treasury
Originating Bill: Tax Laws Amendment (2011 Measures No. 2) Bill 2011
Registered 28 Jun 2011
Date of Assent 27 Jun 2011
Table of contents.

 

 

 

 

 

 

Tax Laws Amendment (2011 Measures No. 2) Act 2011

 

No. 41, 2011

 

 

 

 

 

An Act to amend the law relating to taxation and superannuation, and for related purposes

  

  


Contents

1............ Short title............................................................................................. 1

2............ Commencement................................................................................... 2

3............ Schedule(s)......................................................................................... 4

Schedule 1—Deductible gift recipients                                                                      5

Part 1—Amendments commencing on 1 January 2011                               5

Income Tax Assessment Act 1997                                                                              5

Part 2—Amendments commencing on Royal Assent                                   6

Income Tax Assessment Act 1997                                                                              6

Part 3—Sunsetting on 1 July 2016                                                                         7

Income Tax Assessment Act 1997                                                                              7

Schedule 2—Self managed superannuation funds                                            8

Superannuation Industry (Supervision) Act 1993                                                8

Schedule 3—Use of TFNs for superannuation purposes                            10

Part 1—Amendments commencing on 1 July 2011                                     10

Retirement Savings Accounts Act 1997                                                                 10

Superannuation Industry (Supervision) Act 1993                                              11

Part 2—Amendments commencing on Proclamation                                 13

Retirement Savings Accounts Act 1997                                                                 13

Superannuation Industry (Supervision) Act 1993                                              14

Schedule 4—GST: payments of taxes, fees and charges                              16

A New Tax System (Goods and Services Tax) Act 1999                                      16

A New Tax System (Luxury Car Tax) Act 1999                                                     20

Schedule 5—Other amendments                                                                                 22

Part 1—A New Tax System (Goods and Services Tax) Act 1999      22

Part 2—Approved worker entitlement funds                                                 23

Fringe Benefits Tax Assessment Act 1986                                                             23

Income Tax Assessment Act 1997                                                                            24

Taxation Administration Act 1953                                                                         24

Part 3—Confidentiality of taxpayer Information                                         27

Division 1—Main amendments                                                                              27

Income Tax Assessment Act 1936                                                                            27

Income Tax Assessment Act 1997                                                                            27

Taxation Administration Act 1953                                                                         28

Division 2—Amendment contingent on the Human Services Legislation Amendment Act 2011   28

Taxation Administration Act 1953                                                                         28

Part 4—Employee share schemes                                                                          29

Division 1—Income Tax Assessment Act 1997                                                  29

Division 2—Income Tax (Transitional Provisions) Act 1997                            30

Division 3—Minor amendment                                                                              31

Income Tax Assessment Act 1997                                                                            31

Part 5—General interest charge                                                                             32

Taxation Administration Act 1953                                                                         32

Part 6—Deductible gift recipients                                                                        38

Division 1—Amendments commencing on Royal Assent                                 38

Income Tax Assessment Act 1997                                                                            38

Division 2—Amendments commencing on 1 July 2011                                    39

Income Tax Assessment Act 1997                                                                            39

Division 3—Other amendment                                                                               40

Tax Laws Amendment (Repeal of Inoperative Provisions) Act 2006               40

Part 7—Section 23AB of the Income Tax Assessment Act 1936        41

Income Tax Assessment Act 1936                                                                            41

Part 8—Definitions and signposts to related material                                42

Income Tax Assessment Act 1936                                                                            42

Part 9—Repeal of redundant reference to Papua New Guinea             43

Income Tax Assessment Act 1936                                                                            43

Part 10—Repeal of redundant references to franking                                44

Income Tax Assessment Act 1936                                                                            44

Part 11—Correction of cross‑reference in provision about dividend streaming etc.         45

Income Tax Assessment Act 1936                                                                            45

Part 12—Minor changes to provisions about concessional rebates      46

Income Tax Assessment Act 1936                                                                            46

Part 13—Fixing outdated references to Medicare levy                             47

Income Tax Assessment Act 1997                                                                            47

Part 14—Repeal of references to previously repealed provisions         48

Income Tax Assessment Act 1997                                                                            48

Part 15—Correction of asterisking of reference to tax debts                 49

Income Tax Assessment Act 1997                                                                            49

Part 16—Repeal of outdated provisions about exemption from income tax        50

Income Tax Assessment Act 1936                                                                            50

Income Tax Assessment Act 1997                                                                            50

Part 17—Correction of asterisking of references to quarter                    51

Income Tax Assessment Act 1997                                                                            51

Part 18—Inclusion of Commissioner’s discretion to extend main residence exemption from CGT         52

Income Tax Assessment Act 1997                                                                            52

Part 19—Nomination of controllers of discretionary trust                       53

Income Tax Assessment Act 1997                                                                            53

Part 20—Definitions mainly relevant to Subdivision 165‑F of the Income Tax Assessment Act 1997 57

Income Tax Assessment Act 1997                                                                            57

Taxation Administration Act 1953                                                                         62

Part 21—Removal of definition from imputation provisions                 63

Income Tax Assessment Act 1997                                                                            63

Part 22—Correction of outdated references to virtual PST assets       65

Income Tax Assessment Act 1997                                                                            65

Part 23—Repeal of spent provisions about land transport facilities borrowings 66

Income Tax Assessment Act 1997                                                                            66

Part 24—Prevention of double counting for direct value shifts            67

Income Tax Assessment Act 1997                                                                            67

Part 25—Ineligible income tax remission decisions                                     69

Taxation Administration Act 1953                                                                         69

Part 26—Correction of references to chains of fixed trusts                    70

Income Tax Assessment Act 1997                                                                            70

Part 27—Gender‑specific language                                                                     71

Income Tax Assessment Act 1936                                                                            71

Part 28—Misdescribed amendments                                                                   87

Tax Laws Amendment (2010 Measures No. 1) Act 2010                                    87

Tax Laws Amendment (Transfer of Provisions) Act 2010                                  87

Part 29—References to Schedules                                                                       88

Family Trust Distribution Tax (Primary Liability) Act 1998                            88

Family Trust Distribution Tax (Secondary Liability) Act 1998                        88

Fringe Benefits Tax Assessment Act 1986                                                             88

Income Tax Assessment Act 1936                                                                            88

Income Tax Assessment Act 1997                                                                            89

Income Tax (Transitional Provisions) Act 1997                                                  90

Medicare Levy Act 1986                                                                                           90

Superannuation Contributions Tax (Assessment and Collection) Act 1997 91

Part 30—References to taxation laws                                                                 92

Income Tax Assessment Act 1997                                                                            92

Taxation Administration Act 1953                                                                         92

Part 31—Other amendments                                                                                   94

Income Tax Assessment Act 1936                                                                            94

Income Tax Assessment Act 1997                                                                            94

Income Tax (Transitional Provisions) Act 1997                                                  95

Superannuation Legislation Amendment Act 2010                                            95

Taxation Administration Act 1953                                                                         95

Taxation (Interest on Overpayments and Early Payments) Act 1983              96

Tax Laws Amendment (2007 Measures No. 5) Act 2007                                    96

 


 

 

Tax Laws Amendment (2011 Measures No. 2) Act 2011

No. 41, 2011

 

 

 

An Act to amend the law relating to taxation and superannuation, and for related purposes

[Assented to 27 June 2011]

The Parliament of Australia enacts:

1  Short title

                   This Act may be cited as the Tax Laws Amendment (2011 Measures No. 2) Act 2011.

2  Commencement

             (1)  Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

1.  Sections 1 to 3 and anything in this Act not elsewhere covered by this table

The day this Act receives the Royal Assent.

27 June 2011

2.  Schedule 1, Part 1

1 January 2011.

1 January 2011

3.  Schedule 1, Part 2

The day this Act receives the Royal Assent.

27 June 2011

4.  Schedule 1, Part 3

1 July 2016.

1 July 2016

5.  Schedule 2

1 July 2011.

1 July 2011

6.  Schedule 3, Part 1

1 July 2011.

1 July 2011

7.  Schedule 3, Part 2

The later of:

(a) immediately after the commencement of the provision(s) covered by table item 6; and

(b) the start of a single day to be fixed by Proclamation.

However, if any of the provision(s) do not commence before 1 January 2012, they commence on that day.

1 January 2012

8.  Schedule 4

The day this Act receives the Royal Assent.

27 June 2011

9.  Schedule 5, Part 1

The day this Act receives the Royal Assent.

27 June 2011

10.  Schedule 5, Part 2

The day after this Act receives the Royal Assent.

28 June 2011

11.  Schedule 5, Part 3, Division 1

The day after this Act receives the Royal Assent.

28 June 2011

12.  Schedule 5, Part 3, Division 2

The later of:

(a) immediately after the start of the day after this Act receives the Royal Assent; and

(b) the commencement of Schedule 2 to the Human Services Legislation Amendment Act 2011.

However, the provision(s) do not commence at all if the event mentioned in paragraph (b) does not occur.

1 July 2011 (paragraph (b) applies)

13.  Schedule 5, Parts 4 and 5

The day this Act receives the Royal Assent.

27 June 2011

14.  Schedule 5, Part 6, Division 1

The day this Act receives the Royal Assent.

27 June 2011

15.  Schedule 5, Part 6, Division 2

The later of:

(a) the day this Act receives the Royal Assent; and

(b) 1 July 2011.

1 July 2011 (paragraph (b) applies)

16.  Schedule 5, Part 6, Division 3

Immediately after the commencement of item 15 of Schedule 3 to the Tax Laws Amendment (Repeal of Inoperative Provisions) Act 2006.

1 January 2008

17.  Schedule 5, Parts 7 to 27

The day this Act receives the Royal Assent.

27 June 2011

18.  Schedule 5, item 368

Immediately after the time specified in the Tax Laws Amendment (2010 Measures No. 1) Act 2010 for the commencement of item 105 of Schedule 5 to that Act.

3 June 2010

19.  Schedule 5, item 369

Immediately after the time specified in the Tax Laws Amendment (2010 Measures No. 1) Act 2010 for the commencement of item 173 of Schedule 5 to that Act.

3 June 2010

20.  Schedule 5, item 370

Immediately after the time specified in the Tax Laws Amendment (2010 Measures No. 1) Act 2010 for the commencement of item 201 of Schedule 5 to that Act.

3 June 2010

21.  Schedule 5, item 371

Immediately after the time specified in the Tax Laws Amendment (2010 Measures No. 1) Act 2010 for the commencement of item 11 of Schedule 6 to that Act.

3 June 2010

22.  Schedule 5, item 372

Immediately after the time specified in the Tax Laws Amendment (Transfer of Provisions) Act 2010 for the commencement of item 16 of Schedule 2 to that Act.

1 July 2010

23.  Schedule 5, Parts 29 to 31

The day this Act receives the Royal Assent.

27 June 2011

Note:          This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

             (2)  Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3  Schedule(s)

                   Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.


 

Schedule 1Deductible gift recipients

Part 1Amendments commencing on 1 January 2011

Income Tax Assessment Act 1997

1  Section 30‑90 (cell at table item 10.2.2, column headed “Fund, authority or institution”)

Repeal the cell, substitute:

Girl Guides Australia

2  Section 30‑90 (table item 10.2.3)

Omit “Guides Australia Incorporated”, substitute “Girl Guides Australia”.

3  Section 30‑315 (cell at table item 53A, column without a heading)

Repeal the cell, substitute:

Girl Guides Australia


 

Part 2Amendments commencing on Royal Assent

Income Tax Assessment Act 1997

4  Subsection 30‑25(2) (at the end of the table)

Add:

2.2.39

The Charlie Perkins Scholarship Trust

the gift must be made after 1 August 2010 and before 2 August 2013

2.2.40

Roberta Sykes Indigenous Education Foundation

the gift must be made after 1 August 2010 and before 2 August 2013

5  Section 30‑315 (after table item 30AA)

Insert:

30A

Charlie Perkins Scholarship Trust

item 2.2.39

6  Section 30‑315 (after table item 97)

Insert:

97AA

Roberta Sykes Indigenous Education Foundation

item 2.2.40


 

Part 3Sunsetting on 1 July 2016

Income Tax Assessment Act 1997

7  Subsection 30‑25(2) (table items 2.2.39 and 2.2.40)

Repeal the table items.

8  Section 30‑315 (table items 30A and 97AA)

Repeal the table items.


 

Schedule 2Self managed superannuation funds

  

Superannuation Industry (Supervision) Act 1993

1  After section 62

Insert:

62A  Self managed superannuation funds—investment in collectables and personal use assets

                   The regulations may prescribe rules in relation to the trustees of regulated superannuation funds that are self managed superannuation funds making, holding and realising investments involving:

                     (a)  artwork (within the meaning of the Income Tax Assessment Act 1997); or

                     (b)  jewellery; or

                     (c)  antiques; or

                     (d)  artefacts; or

                     (e)  coins or medallions; or

                      (f)  postage stamps or first day covers; or

                     (g)  rare folios, manuscripts or books; or

                     (h)  memorabilia; or

                      (i)  wine; or

                      (j)  cars; or

                     (k)  recreational boats; or

                      (l)  memberships of sporting or social clubs; or

                    (m)  assets of a particular kind, if assets of that kind are ordinarily used or kept mainly for personal use or enjoyment (not including land).

Note:          The regulations may prescribe penalties of not more than 10 penalty units for offences against the regulations. See paragraph 353(1)(d).

2  Paragraph 353(1)(d)

Omit “subject to subsection 376(6),”.

Note:       This item removes a cross‑reference to a provision that has been repealed.

3  Application provision

(1)       The amendment made by item 1 of this Schedule applies to investments made before, on or after the commencement of this item.

(2)       To avoid doubt, regulations made for the purposes of section 62A of the Superannuation Industry (Supervision) Act 1993, inserted by item 1 of this Schedule, may be expressed to apply to only some of those investments.


 

Schedule 3Use of TFNs for superannuation purposes

Part 1Amendments commencing on 1 July 2011

Retirement Savings Accounts Act 1997

1  Subsections 137(4) and (5)

Repeal the subsections.

2  After section 137

Insert:

137A  Use of tax file number to locate amounts

             (1)  This section applies if:

                     (a)  a holder of an RSA; or

                     (b)  a person applying to become such a holder;

quotes his or her tax file number to the RSA provider in connection with the operation, or the possible future operation, of this Act and the other Superannuation Acts.

             (2)  An RSA provider may, subject to any conditions contained in the regulations, use tax file numbers quoted as mentioned in subsection (1) in order to locate, in the records or accounts of the RSA provider, amounts held in RSAs provided by it.

Note:          Sections 8WA and 8WB of the Taxation Administration Act 1953 contain offences for unauthorised use etc. of tax file numbers.

             (3)  This section does not affect the operation of subclauses 7.1 and 7.1A of National Privacy Principle 7 in Schedule 3 to the Privacy Act 1988.

Note 1:       Subclause 7.1 prohibits an RSA provider adopting a tax file number of an individual as the RSA provider’s own identifier of the individual, such as by using the tax file number as an account or membership number.

Note 2:       See also Division 4 of Part III of the Privacy Act 1988 and the guidelines issued under that Division concerning the collection, storage, use and security of tax file number information.

Superannuation Industry (Supervision) Act 1993

3  Subsections 299H(4) and (5)

Repeal the subsections.

4  Subsection 299H(6)

Omit “subsection (2), (3) or (5)”, substitute “subsection (2) or (3)”.

Note:       The following heading to subsection 299H(6) is inserted “Offences”.

5  Subsection 299H(7)

Omit “(2), (3) or (5)”, substitute “subsection (2) or (3)”.

6  Subsections 299J(4) and (5)

Repeal the subsections.

7  Subsections 299J(6) and (7)

Omit “or (5)”.

Note:       The following heading to subsection 299J(6) is inserted “Offences”.

8  Subsections 299K(4) and (5)

Repeal the subsections.

9  Subsections 299K(6) and (7)

Omit “subsection (2), (3) or (5)”, substitute “subsection (2) or (3)”.

Note:       The following heading to subsection 299K(6) is inserted “Offences”.

10  Subsections 299L(4) and (5)

Repeal the subsections.

11  Subsections 299L(6) and (7)

Omit “or (5)”.

Note:       The following heading to subsection 299L(6) is inserted “Offences”.

12  After section 299L

Insert:

299LA  Use of tax file number to locate amounts

             (1)  This section applies if:

                     (a)  a beneficiary of an eligible superannuation entity, or of a regulated exempt public sector superannuation scheme; or

                     (b)  an applicant to become such a beneficiary;

quotes his or her tax file number to a trustee of the entity or scheme in connection with the operation, or the possible future operation, of this Act and the other Superannuation Acts.

             (2)  A trustee of an eligible superannuation entity, or of a regulated exempt public sector superannuation scheme, may, subject to any conditions contained in the regulations, use tax file numbers quoted as mentioned in subsection (1) in order to locate, in the records or accounts of the entity or scheme, amounts held for the benefit of persons.

Note:          Sections 8WA and 8WB of the Taxation Administration Act 1953 contain offences for unauthorised use etc. of tax file numbers.

             (3)  This section does not affect the operation of subclauses 7.1 and 7.1A of National Privacy Principle 7 in Schedule 3 to the Privacy Act 1988.

Note 1:       Subclause 7.1 prohibits a trustee adopting a tax file number of an individual as the trustee’s own identifier of the individual, such as by using the tax file number as an account or membership number.

Note 2:       See also Division 4 of Part III of the Privacy Act 1988 and the guidelines issued under that Division concerning the collection, storage, use and security of tax file number information.

13  Application provision

The amendments made by this Part apply to the use of tax file numbers on or after the commencement of this item, whether the tax file numbers were quoted before, on or after that commencement.


 

Part 2Amendments commencing on Proclamation

Retirement Savings Accounts Act 1997

14  Section 16

Insert:

eligible superannuation entity has the meaning given by Part 25A of the Superannuation Industry (Supervision) Act 1993.

15  Section 16

Insert:

regulated exempt public sector superannuation scheme has the meaning given by Part 25A of the Superannuation Industry (Supervision) Act 1993.

16  Subsection 137A(2)

Repeal the subsection, substitute:

             (2)  An RSA provider may, subject to any conditions contained in the regulations, use tax file numbers quoted as mentioned in subsection (1):

                     (a)  in order to locate, in the records or accounts of the RSA provider, amounts held in RSAs provided by it; or

                     (b)  in order to facilitate the consolidation of any of the following in relation to a particular person:

                              (i)  RSAs provided by one or more RSA providers and held by the person;

                             (ii)  interests of the person in eligible superannuation entities or regulated exempt public sector superannuation schemes.

Note:          Sections 8WA and 8WB of the Taxation Administration Act 1953 contain offences for unauthorised use etc. of tax file numbers.

          (2A)  Without limiting subsection (2), regulations made for the purposes of that subsection may contain conditions relating to:

                     (a)  a person consenting to use of a tax file number; or

                     (b)  procedures to be followed in a consolidation mentioned in paragraph (2)(b), including procedures to safeguard the integrity of the consolidation; or

                     (c)  an RSA provider disclosing tax file numbers to another RSA provider, or to a trustee of an eligible superannuation entity or of a regulated exempt public sector superannuation scheme, in order to facilitate such a consolidation.

Note:       The heading to section 137A is altered by adding at the end “or for consolidation”.

Superannuation Industry (Supervision) Act 1993

17  Subsection 299LA(2)

Repeal the subsection, substitute:

             (2)  A trustee of an eligible superannuation entity, or of a regulated exempt public sector superannuation scheme, may, subject to any conditions contained in the regulations, use tax file numbers quoted as mentioned in subsection (1):

                     (a)  in order to locate, in the records or accounts of the entity or scheme, amounts held for the benefit of persons; or

                     (b)  in order to facilitate the consolidation of any of the following in relation to a particular person:

                              (i)  RSAs provided by one or more RSA providers and held by the person;

                             (ii)  interests of the person in eligible superannuation entities or regulated exempt public sector superannuation schemes.

Note:          Sections 8WA and 8WB of the Taxation Administration Act 1953 contain offences for unauthorised use etc. of tax file numbers.

          (2A)  Without limiting subsection (2), regulations made for the purposes of that subsection may contain conditions relating to:

                     (a)  a person consenting to use of a tax file number; or

                     (b)  procedures that must be followed in a consolidation mentioned in paragraph (2)(b), including procedures to safeguard the integrity of the consolidation; or

                     (c)  a trustee disclosing tax file numbers to another trustee, or to an RSA provider, in order to facilitate such a consolidation.

Note:       The heading to section 299LA is altered by adding at the end “or for consolidation”.

18  Application provision

The amendments made by this Part apply to the use of tax file numbers on or after the commencement of this item, whether the tax file numbers were quoted before, on or after that commencement.

19  Transitional provision—regulations

(1)       A regulation:

                     (a)  made for the purposes of subsection 137A(2) of the Retirement Savings Accounts Act 1997; and

                     (b)  in force immediately before the commencement of this item;

has effect, after the commencement of this item, as if it had been made for the purposes of that subsection as amended by this Part.

(2)       A regulation:

                     (a)  made for the purposes of subsection 299LA(2) of the Superannuation Industry (Supervision) Act 1993; and

                     (b)  in force immediately before the commencement of this item;

has effect, after the commencement of this item, as if it had been made for the purposes of that subsection as amended by this Part.


 

Schedule 4GST: payments of taxes, fees and charges

  

A New Tax System (Goods and Services Tax) Act 1999

1  Subparagraph 13‑20(2)(ba)(i)

Repeal the subparagraph, substitute:

                              (i)  is not an amount, the payment of which (or the discharging of a liability to make a payment of which), because of Division 81 or regulations made under that Division, is not the provision of *consideration; and

Note:       Division 81 excludes certain taxes, fees and charges from the provision of consideration.

2  Division 81

Repeal the Division, substitute:

Division 81Payments of taxes, fees and charges

81‑1  What this Division is about

GST does not apply to payments of taxes, fees and charges that are excluded from the GST by this Division or by regulations.

GST applies to certain taxes, fees and charges prescribed by regulations.

81‑5  Effect of payment of tax

Australian tax not consideration

             (1)  A payment, or the discharging of a liability to make a payment, is not the provision of *consideration to the extent the payment is an *Australian tax.

Regulations may provide for exceptions

             (2)  However, a payment you make, or a discharging of your liability to make a payment, is treated as the provision of *consideration to the extent the payment is an *Australian tax that is, or is of a kind, prescribed by the regulations.

             (3)  For the purposes of subsection (2), the *consideration is taken to be provided to the entity to which the tax is payable, for a supply that the entity makes to you.

81‑10  Effect of payment of certain fees and charges

Certain fees and charges not consideration

             (1)  A payment, or the discharging of a liability to make a payment, is not the provision of *consideration to the extent the payment is an *Australian fee or charge that is of a kind covered by subsection (4) or (5).

Prescribed fees and charges treated as consideration

             (2)  However, a payment you make, or a discharging of your liability to make a payment, is treated as the provision of *consideration to the extent the payment is an *Australian fee or charge that is, or is of a kind, prescribed by the regulations.

             (3)  For the purposes of subsection (2), the *consideration is taken to be provided to the entity to which the fee or charge is payable, for a supply that the entity makes to you.

Fees or charges paid for permissions etc.

             (4)  This subsection covers a fee or charge if the fee or charge:

                     (a)  relates to; or

                     (b)  relates to an application for;

the provision, retention, or amendment, under an *Australian law, of a permission, exemption, authority or licence (however described).

Fees or charges relating to information and record‑keeping etc.

             (5)  This subsection covers a fee or charge paid to an *Australian government agency if the fee or charge relates to the agency doing any of the following:

                     (a)  recording information;

                     (b)  copying information;

                     (c)  modifying information;

                     (d)  allowing access to information;

                     (e)  receiving information;

                      (f)  processing information;

                     (g)  searching for information.

81‑15  Other fees and charges that do not constitute consideration

                   The regulations may provide that the payment of a prescribed *Australian fee or charge, or of an Australian fee or charge of a prescribed kind, or the discharging of a liability to make such a payment, is not the provision of *consideration.

81‑20  Division has effect despite section 9‑15

                   This Division has effect despite section 9‑15 (which is about consideration).

81‑25  Date of effect of regulations

                   Despite subsection 12(2) of the Legislative Instruments Act 2003, regulations made for the purposes of subsection 81‑5(2), 81‑10(2) or section 81‑15 may be expressed to take effect from a date before the regulations are registered under that Act.

3  Subsection 82‑10(3)

Repeal the subsection, substitute:

             (3)  If the other supply constitutes the payment of:

                     (a)  an *Australian tax prescribed by regulations made for the purposes of subsection 81‑5(2); or

                            (b)  an *Australian fee or charge prescribed by regulations made for the purposes of subsection 81‑10(2);

this section overrides those regulations in relation to the payment.

4  Subparagraph 117‑5(1)(ba)(i)

Repeal the subparagraph, substitute:

                              (i)  is not an amount, the payment of which (or the discharging of a liability to make a payment of which), because of Division 81 or regulations made under that Division, is not the provision of *consideration; and

Note:       Division 81 excludes certain taxes, fees and charges from the provision of consideration.

5  Section 195‑1

Insert:

Australian fee or charge means a fee or charge (however described), other than an *Australian tax, imposed under an *Australian law and payable to an *Australian government agency.

6  Section 195‑1

Insert:

Australian tax means a tax (however described) imposed under an *Australian law.

7  Section 195‑1 (definition of Australian tax, fee or charge)

Repeal the definition.

8  Section 195‑1 (note at the end of the definition of connected with Australia)

Omit “sections 81‑10 and 96‑5”, substitute “section 96‑5”.

9  Section 195‑1 (note at the end of the definition of consideration)

After “81‑5,”, insert “81‑10, 81‑15,”.

10  Section 195‑1 (note at the end of the definition of taxable supply)

Omit “81‑10,”.

A New Tax System (Luxury Car Tax) Act 1999

11  Paragraph 5‑20(1)(b)

Omit “*Australian tax, fee or charge”, substitute “*Australian tax or *Australian fee or charge”.

12  Paragraph 5‑20(6)(b)

Omit “*Australian tax, fee or charge”, substitute “*Australian tax or *Australian fee or charge”.

13  Section 27‑1

Insert:

Australian fee or charge has the meaning given by section 195‑1 of the *GST Act.

14  Section 27‑1

Insert:

Australian tax has the meaning given by section 195‑1 of the *GST Act.

15  Section 27‑1 (definition of Australian tax, fee or charge)

Repeal the definition.

16  Application provision

(1)       The amendments made by this Schedule apply in relation to the payment, or the discharging of liability to make a payment, relating to an Australian tax, or an Australian fee or charge, imposed on or after 1 July 2011.

(2)       However, the amendments do not apply in relation to a payment, or a discharge of a liability to make a payment, relating to an Australian tax, or an Australian fee or charge, imposed before 1 July 2012 if the payment is of a kind specified by legislative instrument (a Division 81 determination):

                     (a)  made for the purposes of subsection 81‑5(2) of the A New Tax System (Goods and Services Tax) Act 1999; and

                     (b)  in force immediately before the commencement of this item.

(3)       Despite the repeal of subsection 81‑5(2) of the A New Tax System (Goods and Services Tax) Act 1999 by item 2 of this Schedule, a Division 81 determination continues to have effect, after the commencement of this item and before 1 July 2012, as if the repeal had not happened.


 

Schedule 5Other amendments

Part 1A New Tax System (Goods and Services Tax) Act 1999

1  Subparagraph 153‑50(1)(d)(i)

Omit “agent’s”, substitute “intermediary’s”.

Note:       This item amends a reference to “agent’s” that was not amended when Schedule 3 to the Tax Laws Amendment (2009 GST Administration Measures) Act 2010 replaced references to “agent” in section 153‑50 of the A New Tax System (Goods and Services Tax) Act 1999 with references to “intermediary”.

2  Section 195‑1 (definition of member)

Omit “means”.

Note:       Items 2 and 3 fix a grammatical error.

3  Section 195‑1 (paragraph (b) of the definition of member)

Before “an entity”, insert “means”.


 

Part 2Approved worker entitlement funds

Fringe Benefits Tax Assessment Act 1986

4  Subsections 58PB(2) and (3)

Repeal the subsections, substitute:

Endorsed funds

             (2)  A fund is also an approved worker entitlement fund if:

                     (a)  the fund is endorsed as an approved worker entitlement fund under subsection (3); or

                     (b)  the entity that operates the fund is endorsed for the operation of the fund under subsection (3A).

             (3)  The Commissioner must endorse a fund as an approved worker entitlement fund if:

                     (a)  the fund is entitled to be endorsed as an approved worker entitlement fund (see subsection (4)); and

                     (b)  the fund has applied for the endorsement in accordance with Division 426 in Schedule 1 to the Taxation Administration Act 1953.

          (3A)  The Commissioner must endorse an entity for the operation of a fund as an approved worker entitlement fund if:

                     (a)  the entity is entitled to be endorsed for the operation of the fund as an approved worker entitlement fund (see subsection (4A)); and

                     (b)  the entity has applied for the endorsement in accordance with Division 426 in Schedule 1 to the Taxation Administration Act 1953.

5  Subsection 58PB(4)

Omit “Before the Governor‑General makes a regulation under paragraph (2)(a) prescribing a fund for the purposes of that paragraph, the Commissioner must be satisfied that”, substitute “A fund is entitled to be endorsed as an approved worker entitlement fund if”.

6  At the end of subsection 58PB(4)

Add:

             ; and (f)  the fund, or the entity that operates the fund, has an ABN.

7  After subsection 58PB(4)

Insert:

          (4A)  An entity is entitled to be endorsed for the operation of a fund as an approved worker entitlement fund if the fund is entitled to be endorsed as an approved worker entitlement fund.

8  Section 58PC

Repeal the section.

Income Tax Assessment Act 1997

9  Paragraph 126‑130(2)(b)

Repeal the paragraph, substitute:

                     (b)  the amendment or replacement is done for the purpose of having:

                              (i)  the fund endorsed as an approved worker entitlement fund under subsection 58PB(3) of the Fringe Benefits Tax Assessment Act 1986; or

                             (ii)  the entity that operates the fund endorsed for the operation of the fund as an approved worker entitlement fund under subsection 58PB(3A) of that Act.

Taxation Administration Act 1953

10  After paragraph 426‑5(b) in Schedule 1

Insert:

                   (ba)  endorsement of:

                              (i)  a fund as an approved worker entitlement fund under subsection 58PB(3) of the Fringe Benefits Tax Assessment Act 1986; or

                             (ii)  an entity for the operation of a fund as an approved worker entitlement fund under subsection 58PB(3A) of that Act;

11  Section 426‑55 in Schedule 1 (paragraph (b) of the note)

After “subsections”, insert “58PB(4) and (4A),”.

12  After paragraph 426‑65(1)(b) in Schedule 1

Insert:

                   (ba)  as an approved worker entitlement fund under subsection 58PB(3) of the Fringe Benefits Tax Assessment Act 1986;

                   (bb)  for the operation of an approved worker entitlement fund under subsection 58PB(3A) of the Fringe Benefits Tax Assessment Act 1986;

13  Transitional provision—approved worker entitlement funds

Scope

(1)       This item applies to a fund that, just before the commencement of this item, was an approved worker entitlement fund under subsection 58PB(2) of the Fringe Benefits Tax Assessment Act 1986.

Fund taken to have been endorsed

(2)       Treat the fund as having been endorsed, on that commencement, by the Commissioner under subsection 58PB(3) of that Act, as amended by this Part.

(3)       To avoid doubt, subitem (2) does not prevent the Commissioner from revoking that endorsement at a later time under section 426‑55 in Schedule 1 to the Taxation Administration Act 1953.

Fund not required to have ABN for 6 months

(4)       Paragraph 58PB(4)(f) of the Fringe Benefits Tax Assessment Act 1986, as added by this Part, does not apply to the fund before the end of the period of 6 months starting on the day this item commences.

14  Transitional provision—Australian Business Registrar

During the period of 18 months starting on the day this item commences, the Australian Business Registrar:

                     (a)  may enter, but is not required to enter, in the Australian Business Register under subsection 426‑65(1) in Schedule 1 to the Taxation Administration Act 1953 a statement that:

                              (i)  an approved worker entitlement fund is endorsed as mentioned in paragraph (ba) of that subsection, as inserted by this Part; or

                             (ii)  an entity is endorsed as mentioned in paragraph (bb) of that subsection, as inserted by this Part; and

                     (b)  may publish on the Australian Taxation Office website, in relation to an approved worker entitlement fund:

                              (i)  the name of the fund; and

                             (ii)  the ABN (within the meaning of the A New Tax System (Australian Business Number) Act 1999) of the fund, or of the entity that operates the fund; and

                            (iii)  the date on which the fund was endorsed as mentioned in paragraph (ba) of that subsection, or on which an entity was endorsed for the operation of the fund under paragraph (bb) of that subsection.


 

Part 3Confidentiality of taxpayer Information

Division 1—Main amendments

Income Tax Assessment Act 1936

15  Subsection 6(1) (definition of Employment Department)

Repeal the definition.

16  Subsection 6(1) (definition of Employment Minister)

Repeal the definition.

17  Subsection 6(1) (definition of Employment Secretary)

Repeal the definition, substitute:

Employment Secretary has the meaning given by the Income Tax Assessment Act 1997.

Income Tax Assessment Act 1997

18  Subsection 995‑1(1)

Insert:

Employment Department means the Department that:

                     (a)  deals with matters arising under Chapter 2 of the Fair Work Act 2009; and

                     (b)  is administered by the *Employment Minister.

19  Subsection 995‑1(1)

Insert:

Employment Minister means the Minister administering Chapter 2 of the Fair Work Act 2009.

20  Subsection 995‑1(1)

Insert:

Employment Secretary means the Secretary of the *Employment Department.

Taxation Administration Act 1953

21  Subsection 355‑65(2) in Schedule 1 (cell at table item 4, column headed “The record is made for or the disclosure is to ...”)

At the end of the cell, add “or the *Employment Secretary”.

22  Subsection 355‑65(2) in Schedule 1 (cell at table item 6, column headed “The record is made for or the disclosure is to ...”)

At the end of the cell, add “or the Chief Executive Officer of Centrelink”.

23  Subsection 355‑65(5) in Schedule 1 (paragraph (b) of the cell at table item 2, column headed “and the record or disclosure ...”)

Omit “or residential address information”, substitute “, residential address information or spousal information”.

Division 2—Amendment contingent on the Human Services Legislation Amendment Act 2011

Taxation Administration Act 1953

24  Subsection 355‑65(2) in Schedule 1 (table item 6, column headed “The record is made for or the disclosure is to ...”)

Omit “Chief Executive Officer of Centrelink”, substitute “Chief Executive Centrelink (within the meaning of the Human Services (Centrelink) Act 1997)”.


 

Part 4Employee share schemes

Division 1—Income Tax Assessment Act 1997

25  Subsection 104‑75(6) (note)

Repeal the note, substitute:

Note:          There are also exceptions for employee share trusts: see sections 130‑80 and 130‑90.

26  At the end of subsection 104‑85(6)

Add:

Note:          There is also an exception for employee share trusts: see section 130‑90.

27  Before subsection 130‑90(1)

Insert:

Shares held for future acquisition under employee share schemes

          (1A)  Disregard any *capital gain or *capital loss made by an *employee share trust to the extent that it results from a *CGT event, if:

                     (a)  immediately before the event happens, an *ESS interest is a *CGT asset of the trust; and

                     (b)  either of the following subparagraphs applies:

                              (i)  the event is CGT event E5, and the event happens because a beneficiary of the trust becomes absolutely entitled to the ESS interest as against the trustee;

                             (ii)  the event is CGT event E7, and the event happens because the trustee *disposes of the ESS interest to a beneficiary of the trust; and

                     (c)  Subdivision 83A‑B or 83A‑C (about employee share schemes) applies to the ESS interest.

Shares held to satisfy the future exercise of rights acquired under employee share schemes

28  Subsection 130‑90(2)

After “Subsection”, insert “(1A) or”.

29  Application provision

The amendments made by this Division apply in relation to CGT events that happened, or that happen, on or after 1 July 2009.

Division 2—Income Tax (Transitional Provisions) Act 1997

30  After subsection 83A‑5(2)

Insert:

          (2A)  To avoid doubt, for the purposes of subparagraph (2)(a)(i), section 139CDA of the Income Tax Assessment Act 1936 applied to the interest at the pre‑Division 83A time if the taxpayer in question first became or becomes an employee, as mentioned in that section, before the cessation time for the interest. It does not matter whether the employee so became or becomes an employee before, on or after the pre‑Division 83A time.

Note:          Section 139CDA was about shares or rights acquired while engaged in foreign service.

31  At the end of section 83A‑15

Add:

Amendment of assessments

             (3)  Section 170 of the Income Tax Assessment Act 1936 does not prevent the amendment of an assessment at any time for the purpose of giving effect to subsection (2) of this section.

32  After Division 124

Insert:

Division 125Demerger relief

Table of Subdivisions

125‑B    Consequences for owners of interests

Subdivision 125‑BConsequences for owners of interests

Table of sections

125‑75      Employee share schemes

125‑75  Employee share schemes

                   Despite the amendment of section 125‑75 of the Income Tax Assessment Act 1997 made by Schedule 1 to the Tax Laws Amendment (2009 Budget Measures No. 2) Act 2009, subsection (1) of that section continues to apply, from the commencement of that Schedule, to each ownership interest that it applied to just before that commencement.

Division 3—Minor amendment

Income Tax Assessment Act 1997

33  Section 130‑100 (the section 130‑100 inserted by item 40 of Schedule 1 to the Tax Laws Amendment (2009 Budget Measures No. 2) Act 2009)

Renumber as section 130‑97.


 

Part 5General interest charge

Taxation Administration Act 1953

34  Subsection 8AAB(1)

Omit “Subsections (4) and (5) list”, substitute “Subsection (4) lists”.

35  Subsections 8AAB(4) and (5)

Repeal the subsections, substitute:

             (4)  The following table is an index of the laws that deal with liability to the charge.

 

Liability to general interest charge

Item

Column 1

Section

Column 2

Act

Column 3

Topic

1

162‑100

A New Tax System (Goods and Services Tax) Act 1999

payment of GST instalments

2

168‑10

A New Tax System (Goods and Services Tax) Act 1999

supplies later found to be GST‑free supplies

3

25‑10

A New Tax System (Wine Equalisation Tax) Act 1999

purchases later found to be GST free supplies

4

52

First Home Saver Accounts Act 2008

repayment of FHSA contributions

5

93

Fringe Benefits Tax Assessment Act 1986

payment of fringe benefits tax or penalty tax

6

112B

Fringe Benefits Tax Assessment Act 1986

payment of fringe benefits tax instalments

7

102UP

Income Tax Assessment Act 1936

payment of trustee beneficiary non‑disclosure tax

8

128C

Income Tax Assessment Act 1936

payment of withholding tax

9

163AA

Income Tax Assessment Act 1936

returns by instalment taxpayers

10

163B

Income Tax Assessment Act 1936

returns by persons other than instalment taxpayers

11

271‑80 in Schedule 2F

Income Tax Assessment Act 1936

payment of family trust distribution tax

12

5‑15

Income Tax Assessment Act 1997

unpaid income tax or shortfall interest charge

13

197‑75

Income Tax Assessment Act 1997

payment of untainting tax

14

214‑155

Income Tax Assessment Act 1997

payment of franking tax by a corporate tax entity

15

292‑390

Income Tax Assessment Act 1997

payment of excess contributions tax or shortfall interest charge

16

345‑115

Income Tax Assessment Act 1997

payment of FHSA misuse tax

17

721‑30

Income Tax Assessment Act 1997

liability of members of consolidated groups

18

840‑810

Income Tax Assessment Act 1997

payment of managed investment trust withholding tax

19

214‑105

Income Tax (Transitional Provisions) Act 1997

payment of franking deficit tax

20

85

Petroleum Resource Rent Tax Assessment Act 1987

payment of petroleum resource rent tax, shortfall interest charge or instalment transfer interest charge

21

35

Product Grants and Benefits Administration Act 2000

payment of a designated scheme debt

22

21

Superannuation Contributions Tax (Assessment and Collection) Act 1997

increase in liability to pay superannuation contributions surcharge because of amendment of assessment

23

22

Superannuation Contributions Tax (Assessment and Collection) Act 1997

liability to pay superannuation contributions surcharge because of new assessment

24

25

Superannuation Contributions Tax (Assessment and Collection) Act 1997

payment of superannuation contributions surcharge or advance instalment

25

18

Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997

increase in liability to pay superannuation contributions surcharge because of amendment of assessment

26

21

Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997

payment of superannuation contributions surcharge

27

25

Superannuation (Government Co‑contribution for Low Income Earners) Act 2003

repayments or underpayments of Government co‑contributions that cannot be credited to an account

28

49

Superannuation Guarantee (Administration) Act 1992

payment of superannuation guarantee charge

29

15DC

Superannuation (Self Managed Superannuation Funds) Taxation Act 1987

payment of superannuation (self managed superannuation funds) supervisory levy

30

17A

Superannuation (Unclaimed Money and Lost Members) Act 1999

payment of unclaimed money

31

18C

Superannuation (Unclaimed Money and Lost Members) Act 1999

repayment of Commissioner’s payment that cannot be credited to an account

32

20F

Superannuation (Unclaimed Money and Lost Members) Act 1999

payment of unclaimed superannuation of former temporary residents

33

20M

Superannuation (Unclaimed Money and Lost Members) Act 1999

repayment of Commissioner’s payment for former temporary resident that cannot be credited to an account

34

24F

Superannuation (Unclaimed Money and Lost Members) Act 1999

payment in respect of lost member accounts

35

24L

Superannuation (Unclaimed Money and Lost Members) Act 1999

repayment of Commissioner’s payment for former lost member that cannot be credited to an account

36

8AAZF

Taxation Administration Act 1953

RBA deficit debts

37

8AAZN

Taxation Administration Act 1953

overpayments made by the Commissioner

38

16‑80 in Schedule 1

Taxation Administration Act 1953

payment of PAYG withholding amounts

39

45‑80 in Schedule 1

Taxation Administration Act 1953

payment of PAYG instalments

40

45‑230 in Schedule 1

Taxation Administration Act 1953

shortfall in quarterly PAYG instalments worked out on the basis of a varied rate

41

45‑232 in Schedule 1

Taxation Administration Act 1953

shortfall in quarterly PAYG instalments worked out on the basis of estimated benchmark tax

42

45‑235 in Schedule 1

Taxation Administration Act 1953

shortfall in annual PAYG instalments

43

45‑600 and 45‑620 in Schedule 1

Taxation Administration Act 1953

tax benefits relating to PAYG instalments

44

45‑870 and 45‑875 in Schedule 1

Taxation Administration Act 1953

head company’s liability on shortfall in quarterly PAYG instalments

45

105‑80 in Schedule 1

Taxation Administration Act 1953

payment of a net fuel amount or an amount of indirect tax

46

263‑30 in Schedule 1

Taxation Administration Act 1953

payment of a foreign revenue claim

47

268‑75 in Schedule 1

Taxation Administration Act 1953

late payment of estimate

48

298‑25 in Schedule 1

Taxation Administration Act 1953

payment of administrative penalty

49

9

Tax Bonus for Working Australians Act (No. 2) 2009

repayment of overpayment of tax bonus

50

13

Termination Payments Tax (Assessment and Collection) Act 1997

increase in liability to pay termination payments surcharge because of amendment of assessment

51

16

Termination Payments Tax (Assessment and Collection) Act 1997

payment of termination payments surcharge


 

Part 6Deductible gift recipients

Division 1—Amendments commencing on Royal Assent

Income Tax Assessment Act 1997

36  Subsection 30‑20(2) (table items 1.2.2 and 1.2.3)

Repeal the items.

37  Subsection 30‑20(2) (cell at table item 1.2.4, column headed “Fund, authority or institution”)

Repeal the cell, substitute:

The Royal Australian and New Zealand College of Radiologists

38  Subsection 30‑20(2) (table items 1.2.11 and 1.2.15)

Repeal the items.

39  Subsection 30‑25(2) (table items 2.2.15 and 2.2.19)

Repeal the items.

40  Subsection 30‑40(2) (table item 3.2.3)

Repeal the item.

41  Subsection 30‑45(2) (table items 4.2.5 and 4.2.15)

Repeal the items.

42  Subsection 30‑50(2) (table items 5.2.16, 5.2.24 and 5.2.27)

Repeal the items.

43  Section 30‑65 (table items 7.2.1, 7.2.2 and 7.2.4)

Repeal the items.

44  Subsection 30‑80(2) (table items 9.2.2, 9.2.15 and 9.2.16)

Repeal the items.

45  Section 30‑90 (table item 10.2.6)

Repeal the item.

46  Section 30‑105 (table items 13.2.5, 13.2.11 and 13.2.14)

Repeal the items.

47  Section 30‑315 (table items 5, 19, 21, 24, 25, 25C, 26, 28AAA, 28A, 28AB, 31A, 34, 38, 50A, 60A, 61, 83 and 91)

Repeal the items.

48  Section 30‑315 (after table item 98)

Insert:

98A

Royal Australian and New Zealand College of Radiologists

item 1.2.4

49  Section 30‑315 (table items 105B, 112AFA, 112AG, 112BA and 121C)

Repeal the items.

50  Transitional provision—endorsement as deductible gift recipients

(1)       Treat Breast Cancer Network Australia and Indigenous Community Volunteers Limited as having been endorsed as deductible gift recipients under section 30‑120 of the Income Tax Assessment Act 1997 at the commencement of this item.

(2)       To avoid doubt, subitem (1) does not prevent the Commissioner from revoking either or both of those endorsements at a later time under section 426‑55 in Schedule 1 to the Taxation Administration Act 1953.

Division 2—Amendments commencing on 1 July 2011

Income Tax Assessment Act 1997

51  Subsection 30‑50(2) (table item 5.2.25)

Repeal the item.

52  Subsection 30‑80(2) (table item 9.2.20)

Repeal the item.

53  Section 30‑105 (table items 13.2.4, 13.2.6, 13.2.12 and 13.2.13)

Repeal the items.

54  Section 30‑315 (table items 20AA, 45AA, 49A, 81, 86F and 127AA)

Repeal the items.

Division 3—Other amendment

Tax Laws Amendment (Repeal of Inoperative Provisions) Act 2006

55  Item 15 of Schedule 3 (heading)

Omit “49A,”.

Note:       This item makes an amendment consequential on item 3 of Schedule 6 to the Tax Laws Amendment (2008 Measures No. 2) Act 2008.

56  Effect of omission

To avoid doubt, item 15 of Schedule 3 to the Tax Laws Amendment (Repeal of Inoperative Provisions) Act 2006 is taken never to have repealed item 49A of the table in section 30‑105 of the Income Tax Assessment Act 1997.


 

Part 7Section 23AB of the Income Tax Assessment Act 1936

Income Tax Assessment Act 1936

57  At the end of paragraph 23AB(5)(a)

Add “and”.

Note:       This item and items 59 and 60 add conjunctions at the end of paragraphs, for consistency with current drafting practice.

58  Subsection 23AB(7)

After “that service” (first occurring), insert “. The amount of the rebate is”.

59  At the end of paragraph 23AB(7)(a)

Add “and”.

60  At the end of paragraph 23AB(10)(a)

Add “or”.


 

Part 8Definitions and signposts to related material

Income Tax Assessment Act 1936

61  Subsection 6(1) (at the end of the definition of dividend)

Add:

Note:          Subsection (4) sets out when paragraph (d) of this definition does not apply.

62  Subsection 6(1) (at the end of the definition of permanent establishment)

Add:

Note:          Subsection (6) treats a person as carrying on, at or through a permanent establishment that is a place described in paragraph (d) of this definition, the business of selling the goods manufactured, assembled, processed, packed or distributed by the other person as described in that paragraph.

63  Subsection 6(1) (definition of RSA)

Repeal the definition, substitute:

RSA has the same meaning as in the Income Tax Assessment Act 1997.

Note:          That Act defines RSA as having the meaning given by the Retirement Savings Accounts Act 1997.

64  Subsection 6(1) (definition of RSA provider)

Repeal the definition, substitute:

RSA provider has the same meaning as in the Income Tax Assessment Act 1997.

Note:          That Act defines RSA provider as having the same meaning as in the Retirement Savings Accounts Act 1997.


 

Part 9Repeal of redundant reference to Papua New Guinea

Income Tax Assessment Act 1936

65  At the end of paragraph 6AA(1)(d)

Add “and”.

66  Paragraph 6AA(1)(e)

Omit “Australia; and”, substitute “Australia.”.

67  Paragraph 6AA(1)(f)

Repeal the paragraph.


 

Part 10Repeal of redundant references to franking

Income Tax Assessment Act 1936

68  Paragraph 45C(3)(a)

Omit “class C”.

69  Application provision—amendment of paragraph 45C(3)(a)

The amendment of paragraph 45C(3)(a) of the Income Tax Assessment Act 1936 made by this Part applies to notices of determination under section 45B of that Act served on or after 1 July 2002.

70  Subsections 45C(5) and (6)

Repeal the subsections.


 

Part 11Correction of cross‑reference in provision about dividend streaming etc.

Income Tax Assessment Act 1936

71  Subsection 45D(2)

Omit “referred to in paragraph (1)(b)”, substitute “under section 45A”.

72  Application provision—amendment of subsection 45D(2)

The amendment of subsection 45D(2) of the Income Tax Assessment Act 1936 made by this Part applies to determinations made under section 45A of that Act on or after 24 October 2002.


 

Part 12Minor changes to provisions about concessional rebates

Income Tax Assessment Act 1936

Note:       The heading to section 159HA is altered by omitting “, 159K”.

73  Subsection 159J(1B)

Omit “the the”, substitute “the”.


 

Part 13Fixing outdated references to Medicare levy

Income Tax Assessment Act 1997

74  Section 3‑1

Repeal the section.

75  Subsection 3‑5(1) (note 1)

Omit “Division 785”, substitute “the Medicare Levy Act 1986 and Part VIIB of the Income Tax Assessment Act 1936”.


 

Part 14Repeal of references to previously repealed provisions

Income Tax Assessment Act 1997

76  Section 11‑15 (table item headed “United Nations”)

Omit:

Australian Federal Police member in Cambodia, pay and allowance ..................................................................


23ADA

77  Section 830‑75

Omit “*subject to tax” (wherever occurring), substitute “*subject to foreign tax”.

Note:       This item corrects references to a definition that was repealed.


 

Part 15Correction of asterisking of reference to tax debts

Income Tax Assessment Act 1997

78  Subsection 25‑5(7)

Omit “tax debts”, substitute “*tax debts”.


 

Part 16Repeal of outdated provisions about exemption from income tax

Income Tax Assessment Act 1936

79  Paragraph 128B(3)(ab)

Repeal the paragraph.

Income Tax Assessment Act 1997

80  Section 11‑5 (table item headed “film”)

Repeal the item.

81  Section 11‑5 (table item headed “mining”)

Omit:

Phosphate Mining Company of Christmas Island..............

50‑35

82  Section 50‑35 (table item 7.1)

Repeal the item.

83  Section 50‑45 (heading)

Repeal the heading, substitute:

50‑45  Sports, culture and recreation

84  Section 50‑45 (table items 9.3 and 9.4)

Repeal the items.


 

Part 17Correction of asterisking of references to quarter

Income Tax Assessment Act 1997

85  Subsection 114‑15(2)

Omit “quarter”, substitute “*quarter”.

86  Subsection 114‑15(3) (method statement, steps 1 and 3)

Omit “quarter”, substitute “*quarter”.

87  Subsections 114‑15(5) and (6)

Omit “quarter”, substitute “*quarter”.

88  Section 114‑20

Omit “quarter”, substitute “*quarter”.


 

Part 18Inclusion of Commissioner’s discretion to extend main residence exemption from CGT

Income Tax Assessment Act 1997

89  Paragraph 118‑150(4)(a)

Repeal the paragraph, substitute:

                     (a)  4 years, or a longer time allowed by the Commissioner, before the *dwelling becomes your main residence; and

90  Application provision—amendment of subsection 118‑150(4)

The amendment of subsection 118‑150(4) of the Income Tax Assessment Act 1997 made by this Part applies in relation to CGT events happening on or after the day this Act receives the Royal Assent.


 

Part 19Nomination of controllers of discretionary trust

Income Tax Assessment Act 1997

91  Paragraph 152‑10(1)(c) (note)

Repeal the note, substitute:

Note:       For determining whether an entity is a small business entity, see Subdivision 328‑C (as affected by sections 152‑48 and 152‑78).

92  Subsection 152‑10(1A) (note 1)

Repeal the note, substitute:

Note 1:       The meaning of connected with is affected by section 152‑78.

Note 2:       For determining whether an entity is a small business entity, see Subdivision 328‑C (as affected by sections 152‑48 and 152‑78).

93  Subsection 152‑10(1A) (note 2)

Omit “Note 2:”, substitute “Note 3:”.

94  Section 152‑15 (note)

After “Note”, insert “1”.

95  At the end of section 152‑15

Add:

Note 2:       The meaning of connected with is affected by section 152‑78.

96  At the end of subsections 152‑20(2), (3) and (4)

Add:

Note:          The meaning of connected with is affected by section 152‑78.

97  Subsection 152‑40(1) (note 2)

Omit “152‑42”, substitute “152‑78”.

98  At the end of subsections 152‑40(4) and (4A)

Add:

Note:          The meaning of connected with is affected by section 152‑78.

99  Section 152‑42

Repeal the section.

100  At the end of subsection 152‑47(1)

Add:

Note:          The meaning of connected with an entity is affected by section 152‑78.

101  At the end of subsection 152‑48(2)

Add:

Note:          Paragraphs (a) and (b)—the meaning of connected with is affected by section 152‑78.

102  After section 152‑75

Insert:

Nomination of controllers of discretionary trust

152‑78  Trustee of discretionary trust may nominate beneficiaries to be controllers of trust

             (1)  This section applies for the purposes of determining whether an entity is *connected with you, for the purposes of:

                     (a)  this Subdivision; and

                     (b)  sections 328‑110, 328‑115 and 328‑125 so far as they relate to this Subdivision.

             (2)  The trustee of a discretionary trust may nominate not more than 4 beneficiaries as being controllers of the trust for an income year (the relevant income year) for which the trustee did not make a distribution of income or capital if the trust had a *tax loss, or no *net income, for that year.

             (3)  A nomination under subsection (2) has effect as if each nominated beneficiary controlled the trust for the relevant income year in a way described in section 328‑125.

Note:          This means each nominated beneficiary is connected with the trust.

             (4)  A nomination under subsection (2) must:

                     (a)  be in writing; and

                     (b)  be signed by the trustee and by each nominated beneficiary.

103  Subsection 328‑115(1) (note)

Repeal the note, substitute:

Note:          For small business CGT relief purposes, additional entities may be treated as being connected with you or your affiliate under sections 152‑48 and 152‑78.

104  Subsection 995‑1(1) (note at the end of the definition of connected with)

Omit “152‑42”, substitute “152‑78”.

105  Application and transitional provisions

Application provision

(1)       Section 152‑78 of the Income Tax Assessment Act 1997 applies:

                     (a)  for the purposes of the following provisions relating to CGT events that happen on or after the day this Act receives the Royal Assent:

                              (i)  Subdivision 152‑A of that Act;

                             (ii)  sections 328‑110, 328‑115 and 328‑125 of that Act so far as they relate to that Subdivision; and

                     (b)  for the purposes of the following provisions (and not any other provisions of Subdivision 152‑A of that Act) relating to CGT events that happen before the day this Act receives the Royal Assent but after the start of the 2007‑08 income year:

                              (i)  paragraph 152‑10(1A)(a) of that Act;

                             (ii)  another provision of that Subdivision so far as the provision relates to that paragraph;

                            (iii)  sections 328‑110, 328‑115 and 328‑125 of that Act so far as they relate to a provision covered by subparagraph (i) or (ii) of this paragraph.

Note:       Section 152‑78 of the Income Tax Assessment Act 1997 does not apply for the purposes of a provision of Subdivision 152‑A of that Act that is not covered by subparagraph (1)(b)(i) or (ii) of this item relating to CGT events that happen between the start of the 2007‑08 income year and the day this Act receives the Royal Assent.

(2)       The repeal of section 152‑42 of the Income Tax Assessment Act 1997 applies for the purposes of subparagraph 152‑40(1)(a)(iii) or paragraph 152‑40(1)(b) of that Act relating to CGT events that happen on or after the day this Act receives the Royal Assent.

Extension of time to make choice

(3)       Subitem (4) applies in relation to:

                     (a)  a CGT event that happened before the day this Act receives the Royal Assent; and

                     (b)  an entity that becomes eligible to make a choice under Division 152 of the Income Tax Assessment Act 1997 in relation to that event because of the satisfaction of the conditions in subsection 152‑10(1A) of that Act because of this Part.

(4)       Despite subsection 103‑25(1) of the Income Tax Assessment Act 1997, any such choice by the entity must be made by the latest of:

                     (a)  the day the entity lodges its income tax return for the income year in which the relevant CGT event happened; and

                     (b)  12 months after the day this Act receives the Royal Assent; and

                     (c)  a later day allowed by the Commissioner of Taxation.


 

Part 20Definitions mainly relevant to Subdivision 165‑F of the Income Tax Assessment Act 1997

Income Tax Assessment Act 1997

106  Paragraphs 115‑50(2)(a), (3)(a) and (4)(a)

Omit “fixed entitlements”, substitute “*fixed entitlements”.

107  Subsection 121‑30(2)

Omit “fixed trusts”, substitute “*fixed trusts”.

108  Paragraph 124‑810(3)(a)

Omit “fixed entitlements”, substitute “*fixed entitlements”.

109  Subsection 165‑45(4) (note 2)

After “to”, insert “subsections (3) and (4) of”.

110  Subparagraph 165‑215(2)(a)(i)

Omit “fixed entitlements”, substitute “*fixed entitlements”.

111  Subparagraph 165‑215(2)(a)(ii)

Omit “non‑fixed trusts”, substitute “*non‑fixed trusts”.

112  Subparagraph 165‑215(2)(b)(i)

Omit “fixed trust”, substitute “*fixed trust”.

113  Subsection 165‑215(3)

Omit “fixed entitlements” (first occurring), substitute “*fixed entitlements”.

114  Paragraph 165‑215(4)(a)

Omit “fixed entitlements”, substitute “*fixed entitlements”.

115  Subsection 165‑215(5)

Omit “non‑fixed trust (other than an excepted trust) that, at any time during the *ownership test period, held directly or indirectly a fixed entitlement”, substitute “*non‑fixed trust (other than an *excepted trust) that, at any time during the *ownership test period, held directly or indirectly a *fixed entitlement”.

116  At the end of subsection 165‑215(5)

Add:

Note:          See section 165‑245 for when an entity is taken to have held or had, directly or indirectly, a fixed entitlement to a share of income or capital of a company.

117  Subparagraph 165‑220(2)(a)(i)

Omit “fixed entitlements”, substitute “*fixed entitlements”.

118  Subparagraph 165‑220(2)(a)(ii)

Omit “non‑fixed trusts”, substitute “*non‑fixed trusts”.

119  Subparagraph 165‑220(2)(b)(i)

Omit “fixed trust”, substitute “*fixed trust”.

120  Subparagraph 165‑220(2)(b)(ii)

Omit “*family trusts”, substitute “family trusts”.

121  Subsection 165‑220(3)

Omit “fixed entitlements” (first occurring), substitute “*fixed entitlements”.

122  Paragraph 165‑220(4)(a)

Omit “fixed entitlements”, substitute “*fixed entitlements”.

123  Subsection 165‑220(5)

Omit “non‑fixed trust (other than an excepted trust) that, at any time in the income year, held directly or indirectly a fixed entitlement”, substitute “*non‑fixed trust (other than an *excepted trust) that, at any time in the income year, held directly or indirectly a *fixed entitlement”.

124  At the end of subsection 165‑220(5)

Add:

Note:          See section 165‑245 for when an entity is taken to have held or had, directly or indirectly, a fixed entitlement to a share of income or capital of a company.

125  Section 165‑225

Repeal the section, substitute:

165‑225  Special way of dividing the income year under Subdivision 165‑B

             (1)  If:

                     (a)  the company is required to calculate:

                              (i)  its taxable income and *tax loss for the income year under Subdivision 165‑B; and

                             (ii)  its *net capital gain and *net capital loss for the income year under Subdivision 165‑CB; and

                     (b)  the company meets the requirements of subsections 165‑220(2) and (4);

then, in dividing the income year into periods, apply subsection (2) of this section instead of subsections 165‑45(3) and (4).

             (2)  The last period ends at the end of the income year. Each period (except the last) ends at the earliest of:

                     (a)  the latest time that would result in the persons holding *fixed entitlements to shares of the income or shares of the capital of:

                              (i)  if the company meets the requirements of paragraph 165‑220(2)(a)—the company; or

                             (ii)  if the company meets the requirements of paragraph 165‑220(2)(b)—the holding entity mentioned in that paragraph;

                            and the percentages of the shares that they hold, remaining the same during the whole of the period; and

                     (b)  the times that, for all of the *non‑fixed trusts, other than *excepted trusts, holding directly or indirectly a fixed entitlement to a share of the income or capital of the company at any time during the income year, are the latest times that would result in individuals having *more than a 50% stake in their income or capital; and

                     (c)  the earliest time in the period when a group (within the meaning of Schedule 2F to the Income Tax Assessment Act 1936) begins to *control a non‑fixed trust, other than an excepted trust, that holds directly or indirectly a fixed entitlement to a share of the income or capital of the company at any time during the income year.

Note:          See section 165‑245 for when an entity is taken to have held or had, directly or indirectly, a fixed entitlement to a share of income or capital of a company.

126  Subparagraph 165‑230(2)(a)(i)

Omit “fixed entitlements”, substitute “*fixed entitlements”.

127  Subparagraph 165‑230(2)(a)(ii)

Omit “non‑fixed trusts”, substitute “*non‑fixed trusts”.

128  Subparagraph 165‑230(2)(b)(i)

Omit “fixed trust”, substitute “*fixed trust”.

129  Subparagraph 165‑230(2)(b)(ii)

Omit “*family trusts”, substitute “family trusts”.

130  Subsection 165‑230(3)

Omit “fixed entitlements” (first occurring), substitute “*fixed entitlements”.

131  Paragraph 165‑230(4)(a)

Omit “fixed entitlements”, substitute “*fixed entitlements”.

132  Subsection 165‑230(5)

Omit “non‑fixed trust (other than an excepted trust) that, at any time during the *ownership test period, held directly or indirectly a fixed entitlement”, substitute “*non‑fixed trust (other than an *excepted trust) that, at any time during the *ownership test period, held directly or indirectly a *fixed entitlement”.

133  At the end of subsection 165‑230(5)

Add:

Note:          See section 165‑245 for when an entity is taken to have held or had, directly or indirectly, a fixed entitlement to a share of income or capital of a company.

134  Subsection 165‑235(3)

Omit “non‑fixed trust”, substitute “*non‑fixed trust”.

135  Paragraph 165‑235(4)(a)

Omit “non‑fixed trust”, substitute “*non‑fixed trust”.

136  Subsection 165‑240(1)

Omit “non‑fixed trust”, substitute “*non‑fixed trust”.

137  Section 165‑245

Repeal the section, substitute:

165‑245  When an entity has a fixed entitlement to income or capital of a company

                   For the purposes of this Act, an entity is taken to have held or had, directly or indirectly, a *fixed entitlement to a share of income or capital of a company at a time if and only if the entity held or had, directly or indirectly, that fixed entitlement at that time for the purposes of Schedule 2F to the Income Tax Assessment Act 1936.

138  Paragraph 207‑130(6)(f)

Omit “more than a 50% stake”, substitute “*more than a 50% stake”.

139  Subsection 707‑130(1) (note 1)

Omit “(as defined in that Schedule)”.

140  Subsection 707‑130(1) (note 1)

Omit “, as defined in that Schedule,”.

141  Subsection 995‑1(1)

Insert:

control a non‑fixed trust has the meaning given by Subdivision 269‑E in Schedule 2F to the Income Tax Assessment Act 1936.

142  Subsection 995‑1(1)

Insert:

excepted trust has the meaning given by section 272‑100 in Schedule 2F to the Income Tax Assessment Act 1936.

143  Subsection 995‑1(1) (definition of fixed entitlement)

After “capital of a”, insert “company, partnership or”.

144  Subsection 995‑1(1) (at the end of the definition of fixed entitlement)

Add:

Note:          Section 165‑245 affects when an entity is taken to have held or had, directly or indirectly, a fixed entitlement to a share of income or capital of a company.

145  Subsection 995‑1(1) (definition of more than a 50% stake)

Repeal the definition, substitute:

more than a 50% stake:

                     (a)  more than a 50% stake in a company has the meaning given by section 165‑37; and

                     (b)  more than a 50% stake in the income or capital of a trust has the meaning given by section 269‑50 in Schedule 2F to the Income Tax Assessment Act 1936.

Taxation Administration Act 1953

146  Paragraph 45‑287(1)(a) in Schedule 1

Omit “fixed entitlements”, substitute “*fixed entitlements”.

147  Paragraph 45‑287(4)(a) in Schedule 1

Omit “fixed entitlement”, substitute “*fixed entitlement”.


 

Part 21Removal of definition from imputation provisions

Income Tax Assessment Act 1997

148  Section 204‑70

Repeal the section, substitute:

204‑70  Application of this Subdivision

             (1)  This Subdivision applies to an entity if the difference between:

                     (a)  the *benchmark franking percentage for the entity for a *franking period (the current franking period); and

                     (b)  the benchmark franking percentage for the entity for the last franking period in which a *frankable distribution was made (the last relevant franking period);

is more than the amount worked out using the following formula (whether the percentage for the current franking period is more than or less than the percentage for the last relevant franking period):

             (2)  However, this Subdivision does not apply to an entity to which the benchmark rule does not apply.

Note:          Section 203‑20 identifies the entities to which the benchmark rule does not apply.

149  Subsections 204‑75(1) and (2)

Repeal the subsections, substitute:

             (1)  The entity must notify the Commissioner in writing of the difference.

150  Subsection 204‑80(1)

Omit “If the *benchmark franking percentage for an entity for a *franking period (the current franking period) *differs significantly from the benchmark franking percentage for the entity for the last franking period in which a *frankable distribution was made (the last relevant franking period), the”, substitute “The”.


 

Part 22Correction of outdated references to virtual PST assets

Income Tax Assessment Act 1997

151  Subparagraph 320‑141(2)(a)(i)

Omit “*virtual PST assets”, substitute “*complying superannuation/FHSA assets”.

152  Subparagraph 320‑141(2)(a)(ii)

Omit “virtual PST assets”, substitute “complying superannuation/FHSA assets”.

153  Application provision—amendments of paragraph 320‑141(2)(a)

The amendments of paragraph 320‑141(2)(a) of the Income Tax Assessment Act 1997 made by this Part apply on and after 26 June 2008.


 

Part 23Repeal of spent provisions about land transport facilities borrowings

Income Tax Assessment Act 1997

154  Section 13‑1 (table item headed “land transport facilities borrowings”)

Repeal the item.

155  Subsection 250‑60(3)

Omit “facilities”, substitute “facilities”.

156  Paragraph 250‑60(3)(d)

Repeal the paragraph.

157  Paragraph 250‑60(3)(e)

Omit “other”.

158  Division 396

Repeal the Division.

159  Subsection 995‑1(1) (definition of land transport facilities borrowings agreement)

Repeal the definition.

160  Subsection 995‑1(1) (definition of land transport facility)

Repeal the definition.

161  Subsection 995‑1(1) (definition of LTF interest)

Repeal the definition.

162  Subsection 995‑1(1) (definition of related facility)

Repeal the definition.

Part 24Prevention of double counting for direct value shifts

Income Tax Assessment Act 1997

163  At the end of section 725‑250

Add:

Reducing uplift to prevent double increase in cost base etc.

             (3)  However, if, apart from paragraph (2)(b), an amount is included in the *cost base or *reduced cost base of an *up interest as a result of the *scheme under which the *direct value shift happens, the uplift in the *adjustable value of the interest under that paragraph is reduced by that amount.

164  At the end of subsection 725‑255(2)

Add:

Note:          If subsection 725‑250(3) is relevant, it will affect all the uplifts worked out under all those items.

165  After subsection 725‑335(3)

Insert:

Reducing uplift to prevent double increase in adjustable value

          (3A)  However, if, apart from paragraph (3)(b), an amount is included, as a result of the *scheme under which the *direct value shift happens, in the *adjustable value of an *up interest that is your *trading stock or *revenue asset, the uplift in the adjustable value of the interest under that paragraph is reduced by that amount.

166  At the end of subsection 725‑340(2)

Add:

Note:          If subsection 725‑335(3A) is relevant, it will affect all the uplifts worked out under all those items.

167  Application provision

Subsections 725‑250(3) and 725‑335(3A) of the Income Tax Assessment Act 1997 apply in relation to schemes entered into on or after the commencement of those subsections.


 

Part 25Ineligible income tax remission decisions

Taxation Administration Act 1953

168  Subsection 2(1)

Insert:

ineligible income tax remission decision has the meaning given by section 14ZS.

169  Section 14ZQ (definition of ineligible income tax remission decision)

Repeal the definition.

170  Subsection 14ZS(1)

Repeal the subsection.

171  Subsection 14ZS(2)

Omit “(2) An objection decision is an ineligible income tax remission decision”, substitute “(1) An objection decision is an ineligible income tax remission decision”.

172  Subsection 14ZS(5)

Renumber as subsection (2).


 

Part 26Correction of references to chains of fixed trusts

Income Tax Assessment Act 1997

173  Subparagraph 855‑40(2)(b)(i)

Omit “fixed trust”, substitute “*fixed trust”.

174  Subparagraph 855‑40(2)(b)(ii)

Omit “a *chain of fixed trusts”, substitute “a *chain of trusts, each trust in which is a fixed trust”.

175  Paragraph 855‑40(6)(b)

Omit “a *chain of fixed trusts”, substitute “a *chain of trusts, each trust in which is a fixed trust”.


 

Part 27Gender‑specific language

Income Tax Assessment Act 1936

176  Subsection 6(1) (definition of income from personal exertion)

Omit “him” (wherever occurring), substitute “the taxpayer”.

177  Subsection 6(1) (paragraph (a) of the definition of income from personal exertion)

Omit “his”, substitute “the taxpayer’s”.

178  Subsection 6(1) (paragraph (e) of the definition of permanent establishment)

After “his”, insert “or her”.

179  Subsection 6(1) (subparagraphs (a)(i) and (ii) of the definition of resident)

Omit “his”, substitute “the person’s”.

180  Subsection 6(1) (subparagraph (a)(ii) of the definition of resident)

Omit “he”, substitute “the person”.

181  Section 6A

Omit “his” (wherever occurring), substitute “the person’s”.

182  Subsection 14(2)

After “him”, insert “or her”.

183  Subsection 14(2)

After “he”, insert “or she”.

184  Subsection 23AA(2)

After “him”, insert “or her”.

185  Paragraphs 23AA(3)(a), (b) and (c) and (6)(a)

Omit “he”, substitute “the person”.

186  Subsection 23AB(2)

After “his”, insert “, her”.

187  Subsection 23AB(7)

After “his”, insert “or her”.

188  Subsection 23AB(7)

After “he”, insert “or she”.

189  Paragraph 23AB(7)(b)

After “him”, insert “or her”.

190  Subsection 23AB(11)

After “his”, insert “or her”.

191  Subparagraph 23AC(3)(a)(i)

Omit “he” (wherever occurring), substitute “the member”.

192  Subparagraph 23AC(3)(a)(i)

Omit “his”, substitute “the member’s”.

193  Subparagraphs 23AC(3)(a)(ii) and (iii)

Omit “he” (wherever occurring), substitute “the member”.

194  Subparagraph 23AC(3)(a)(iii)

Omit “his”, substitute “the member’s”.

195  Subparagraph 23AC(3)(a)(iv)

Omit “he” (wherever occurring), substitute “the member”.

196  Subparagraph 23AC(3)(b)(i)

Omit “his” (first occurring), substitute “the member’s”.

197  Subparagraph 23AC(3)(b)(i)

Omit “he” (wherever occurring), substitute “the member”.

198  Subparagraph 23AC(3)(b)(i)

Omit “his” (second occurring), substitute “the member’s”.

199  Subparagraph 23AC(3)(b)(ii)

Omit “he” (wherever occurring), substitute “the member”.

200  Subsection 23AF(11)

Omit “he”, substitute “that Minister”.

201  Subsection 23AF(11)

Omit “him”, substitute “that Minister”.

202  Subsection 23AF(12)

Omit “him”, substitute “that Minister”.

203  Subsection 23AF(12)

Omit “his”, substitute “that Minister’s”.

204  Subsection 23AF(18) (paragraph (a) of the definition of eligible foreign remuneration)

After “his”, insert “or her”.

205  Subsection 24B(1) (paragraph (b) of the definition of prescribed person)

After “his”, insert “or her”.

206  Paragraph 24C(a)

After “his”, insert “or her”.

207  Subsection 24D(4)

Omit “his”, substitute “that holder’s”.

208  Paragraph 24E(1)(b)

After “his”, insert “or her”.

209  Paragraph 24E(4)(b)

Omit “he”, substitute “the trustee”.

210  Paragraph 24E(4)(c)

Omit “his”, substitute “the trustee’s”.

211  Paragraph 24G(1)(e)

After “he”, insert “or she”.

212  Subsection 25A(1)

Omit “him”, substitute “the taxpayer”.

213  Paragraph 25A(10)(a)

Omit “his”, substitute “the Commissioner’s”.

214  Subparagraph 25A(11)(b)(i)

Omit “his”, substitute “the transferee’s”.

215  Subsection 26AB(4)

Omit “he”, substitute “the taxpayer”.

216  Paragraphs 26AG(3)(d) and (e)

After “his”, insert “or her”.

217  Subsection 26AG(4)

After “his”, insert “or her”.

218  Paragraphs 26AG(10)(f) and (g)

After “his” (wherever occurring), insert “or her”.

219  Paragraph 26AH(2)(b)

After “he”, insert “or she”.

220  Subsection 26AH(4)

After “his”, insert “or her”.

221  Subsection 26AH(4)

After “he”, insert “or she”.

222  Subparagraph 26C(2)(b)(i)

After “his”, insert “or her”.

223  Subsection 27(1)

Omit “him”, substitute “the resident”.

224  Subsection 27(1)

Omit “his”, substitute “the resident’s”.

225  Subsection 51AD(9)

Omit “he” (wherever occurring), substitute “the Commissioner”.

226  Paragraph 51AD(20)(f)

Omit “he”, substitute “the taxpayer”.

227  Subsection 52(1)

Omit “his” (first occurring), substitute “the taxpayer’s”.

228  Subsection 52(1)

After “he”, insert “or she”.

229  Subsection 52(1)

After “his” (second occurring), insert “or her”.

230  Subsection 52(1)

Omit “him”, substitute “the taxpayer”.

231  Paragraph 52A(3)(j)

After “he”, insert “or she”.

232  Subsection 73A(2)

Omit “by him or on his behalf”, substitute “by or on behalf of the taxpayer”.

233  Paragraph 73A(2)(b)

Omit “he”, substitute “the taxpayer”.

234  Subsection 79A(1)

Omit “his”, substitute “the taxpayer’s”.

235  Paragraph 79A(2)(f)

Omit “him” (first occurring), substitute “the taxpayer”.

236  Paragraph 79A(2)(f)

Omit “he”, substitute “the taxpayer”.

237  Paragraph 79A(2)(f)

Omit “him” (last occurring), substitute “the taxpayer”.

238  Subsection 79A(2A)

Omit “his”, substitute “the taxpayer’s”.

239  Paragraph 79A(3B)(c)

After “his”, insert “or her”.

240  Subsection 79A(3E)

After “he”, insert “or she”.

241  Subsection 79B(1)

After “his”, insert “or her”.

242  Paragraph 79B(2)(b)

After “him”, insert “or her”.

243  Subsections 79B(5) and (5A)

Omit “him”, substitute “the Treasurer”.

244  Section 82

Omit “him”, substitute “the person”.

245  Subsection 82KL(8)

Omit “his”, substitute “the Commissioner’s”.

246  Subsection 82L(1) (paragraph (b) of the definition of convertible note)

After “him” (wherever occurring), insert “or her”.

247  Paragraph 82M(1)(b)

After “him” (wherever occurring), insert “or her”.

248  Paragraphs 82P(2)(b) and (3)(b)

After “him” (wherever occurring), insert “or her”.

249  Subsection 82R(2)

After “him” (wherever occurring), insert “or her”.

250  Subparagraph 82SA(1)(d)(i)

After “him”, insert “or her”.

251  Subparagraph 82SA(1)(d)(vii)

After “his”, insert “or her”.

252  Subparagraph 82SA(1)(d)(vii)

After “he” (first occurring), insert “or she”.

253  Subparagraph 82SA(1)(d)(vii)

After “he” (last occurring), insert “, she”.

254  Subparagraph 82SA(1)(d)(viii)

After “he”, insert “or she”.

255  Paragraph 94(2)(a)

After “his”, insert “or her”.

256  Subsections 94(9), (10), (10A) and (10B)

After “his” (wherever occurring), insert “or her”.

257  Sub‑subparagraph 94(10C)(a)(i)(A)

After “his”, insert “or her”.

258  Section 95B

After “his”, insert “or her”.

259  Paragraph 99A(3)(c)

After “he”, insert “or she”.

260  Paragraph 99C(2)(e)

After “his”, insert “or her”.

261  Section 101

Omit “his” (first occurring), substitute “the trustee’s”.

262  Section 101

Omit “him”, substitute “the beneficiary”.

263  Section 101

Omit “his” (second occurring), substitute “the beneficiary’s”.

264  Subsection 101A(1)

Omit “him during his”, substitute “him or her during his or her”.

265  Subsection 101A(2)

After “his”, insert “or her”.

266  Paragraph 102(1)(a)

Omit “he”, substitute “the person”.

267  Subsection 102(2)

Omit “his”, substitute “the person’s”.

268  Subsection 102(2)

Omit “him” (first occurring), substitute “the person”.

269  Subsection 102(2)

After “he” (first occurring), insert “or she”.

270  Subsection 102(2)

Omit “him” (last occurring), substitute “the person”.

271  Paragraphs 102(2)(a) and (b)

After “he”, insert “or she”.

272  Subsection 102(3)

After “his” (wherever occurring), insert “or her”.

273  Subparagraphs 102A(4)(a)(i) and (b)(i)

After “he”, insert “or she”.

274  Paragraph 102G(11)(a)

After “he”, insert “or she”.

275  Paragraphs 102G(11)(b) and (c)

After “his” (wherever occurring), insert “or her”.

276  Subsection 103(2)

After “his”, insert “or her”.

277  Paragraph 103A(5)(d)

Omit “he”, substitute “the Commissioner”.

278  Paragraph 103A(7)(a)

After “he”, insert “or she”.

279  Paragraphs 103A(7)(b) and (c)

After “his” (wherever occurring), insert “or her”.

280  Subsection 120(2)

After “his” (wherever occurring), insert “or her”.

281  Subsection 126(3)

Omit “he shall refund to him the amount of tax paid by the company in respect of his debentures”, substitute “the Commissioner must refund to that person the amount of tax paid by the company in respect of his or her debentures”.

282  Subsection 128A(3)

After “he”, insert “or she”.

283  Subsections 128B(10) and (11)

After “him”, insert “or her”.

284  Sections 129 and 130

After “him” (wherever occurring), insert “or her”.

285  Section 131

Omit “he”, substitute “the Commissioner”.

286  Section 134

Omit “him”, substitute “the person”.

287  Sections 134 and 135

After “he”, insert “or she”.

288  Subsections 136AF(1) and (3)

Omit “he”, substitute “the Commissioner”.

289  Subsection 136AF(5)

Omit “his”, substitute “the Commissioner’s”.

290  Sections 142, 143 and 147

Omit “him” (wherever occurring), substitute “the insurer”.

291  Subsection 148(2)

Omit “his” (wherever occurring), substitute “that person’s”.

292  Paragraph 148(2)(b)

Omit “he”, substitute “that person”.

293  Subsection 148(3)

After “he”, insert “or she”.

294  Subsection 148(3)

After “him”, insert “or her”.

295  Subsection 148(4)

Omit “him” (wherever occurring), substitute “that person”.

296  Subsections 148(5) and (8)

Omit “he”, substitute “that person”.

297  Subsection 148(9)

Omit “him”, substitute “that person”.

298  Paragraph 148(9)(a)

Omit “he”, substitute “that person”.

299  Paragraph 148(9)(a)

Omit “his”, substitute “that person’s”.

300  Paragraph 148(9)(b)

Omit “he” (wherever occurring), substitute “that person”.

301  Section 152

Omit “him as if he”, substitute “the taxpayer as if he or she”.

302  Subsection 155(1)

After “his” (wherever occurring), insert “or her”.

303  Subsection 155(1)

After “he” (first occurring), insert “or she”.

304  Subsection 155(1)

After “him”, insert “or her”.

305  Subsection 155(1)

After “he” (last occurring), insert “or she”.

306  Subsection 155(2)

After “him”, insert “or her”.

307  Subsection 155(2)

After “he”, insert “or she”.

308  Subsection 156(1) (definition of relevant primary production deductions)

Omit “his” (wherever occurring), substitute “the taxpayer’s”.

309  Subsection 156(5)

After “his”, insert “or her”.

310  Subsection 157(3)

After “he”, insert “or she”.

311  Subsection 157(4)

Omit “him as if he”, substitute “the taxpayer as if he or she”.

312  Paragraph 159H(a)

After “him”, insert “or her”.

313  Subsections 159J(1), (1A) and (1B)

After “his”, insert “or her”.

314  Subsections 159L(1) and (3)

After “his” (wherever occurring), insert “or her”.

315  Paragraph 159L(4)(a)

Omit “he”, substitute “the taxpayer”.

316  Paragraph 159L(4)(a)

After “his”, insert “or her”.

317  Section 159M

After “his”, insert “or her”.

318  Subsection 159P(4) (paragraph (h) of the definition of medical expenses)

After “him”, insert “or her”.

319  Subsections 160AAB(2), (3) and (6)

After “his” (wherever occurring), insert “or her”.

320  Section 163

Omit “him”, substitute “the Commissioner”.

321  Section 164

Omit “him or with his”, substitute “the person or with the person’s”.

322  Section 166

Omit “his”, substitute “the Commissioner’s”.

323  Section 167

After “his”, insert “or her”.

324  Subsection 171(1)

Omit “he”, substitute “the taxpayer”.

325  Paragraph 177E(1)(c)

After “his”, insert “or her”.

326  Subsections 177F(1) and (3)

After “he” (wherever occurring), insert “or she”.

327  Subsection 177F(6)

Omit “his”, substitute “the Commissioner’s”.

328  Subsection 251R(4)

Omit “his”, substitute “the person’s”.

329  Subsection 251S(2)

Omit “him”, substitute “the person”.

330  Paragraph 252(1)(c)

Omit “him”, substitute “the officer”.

331  Paragraph 252(1)(g)

Omit “he is required to do in his”, substitute “the officer is required to do in the officer’s”.

332  Paragraph 252(1)(i)

Omit “him”, substitute “the officer”.

333  Subsection 252A(3)

After “him”, insert “or her”.

334  Subsection 252A(6)

Omit “his”, substitute “the officer’s”.

335  Subsection 252A(12)

Omit “he is required to do in his”, substitute “the officer is required to do in the officer’s”.

336  Paragraph 254(1)(a)

After “He”, insert “or she”.

337  Paragraph 254(1)(a)

After “him”, insert “or her”.

338  Paragraph 254(1)(a)

After “his” (wherever occurring), insert “or her”.

339  Paragraph 254(1)(b)

After “He”, insert “or she”.

340  Paragraph 254(1)(b)

After “his”, insert “or her”.

341  Paragraph 254(1)(c)

After “he”, insert “or she”.

342  Paragraph 254(1)(d)

After “He”, insert “or she”.

343  Paragraph 254(1)(d)

Omit “him in his”, substitute “him or her in his or her”.

344  Paragraph 254(1)(e)

After “He”, insert “or she”.

345  Paragraph 254(1)(e)

After “he” (wherever occurring), insert “or she”.

346  Paragraph 254(1)(f)

After “He”, insert “or she”.

347  Paragraphs 254(1)(f) and (g)

After “he”, insert “or she”.

348  Paragraph 254(1)(g)

Omit “the other or others shall be liable to pay him each his”, substitute “each other one is liable to pay him or her an”.

349  Paragraph 254(1)(h)

Omit “he”, substitute “the Commissioner”.

350  Paragraphs 255(1)(a) and (b)

Omit “he”, substitute “the person”.

351  Paragraph 255(1)(b)

Omit “him”, substitute “the person”.

352  Paragraph 255(1)(c)

Omit “he” (first occurring), substitute “the person”.

353  Paragraph 255(1)(c)

Omit “him”, substitute “the person”.

354  Paragraph 255(1)(c)

Omit “he” (second and third occurring), substitute “the person”.

355  Paragraph 255(1)(d)

Omit “he” (wherever occurring), substitute “the person”.

356  Subsection 255(2)

Omit “him” (wherever occurring), substitute “the person”.

357  Section 257

Omit “him”, substitute “the banker”.

358  Section 262

Omit “his”, substitute “the person’s”.

359  Subsection 263(1)

Omit “him”, substitute “the Commissioner”.

360  Paragraph 264(1)(a)

Omit “him”, substitute “the Commissioner”.

361  Paragraph 264(1)(a)

Omit “he”, substitute “the Commissioner”.

362  Paragraph 264(1)(b)

Omit “him” (first and second occurring), substitute “the Commissioner”.

363  Paragraph 264(1)(b)

Omit “his” (first occurring), substitute “the person’s”.

364  Paragraph 264(1)(b)

Omit “him” (last occurring), substitute “the person”.

365  Paragraph 264(1)(b)

Omit “his” (second and third occurring), substitute “the person’s”.

366  Subsection 264(2)

Omit “he”, substitute “the Commissioner”.

367  Subsection 264(2)

Omit “him”, substitute “the Commissioner”.


 

Part 28Misdescribed amendments

Tax Laws Amendment (2010 Measures No. 1) Act 2010

368  Item 105 of Schedule 5

Omit “*accounting standards, or”, substitute “*accounting standards or”.

369  Item 173 of Schedule 5

Omit “comes into existence”, substitute “come into existence”.

370  Item 201 of Schedule 5

Omit “*virtual”, substitute “virtual”.

371  Item 11 of Schedule 6 (heading)

Omit “capital gains tax”, substitute “capital gains”.

Tax Laws Amendment (Transfer of Provisions) Act 2010

372  Item 16 of Schedule 2

Repeal the item (including the note).

Note:       This item repeals an item that amends provisions that have been repealed.


 

Part 29References to Schedules

Family Trust Distribution Tax (Primary Liability) Act 1998

373  Section 3

Omit “of Schedule 2F”, substitute “in Schedule 2F”.

Family Trust Distribution Tax (Secondary Liability) Act 1998

374  Section 3

Omit “of Schedule 2F”, substitute “in Schedule 2F”.

Fringe Benefits Tax Assessment Act 1986

375  Subsection 136(1) (paragraph (q) of the definition of fringe benefit)

Omit “of Schedule 2F”, substitute “in Schedule 2F”.

Income Tax Assessment Act 1936

376  Subsection 95(1) (note at the end of the definition of net income)

Omit “of Schedule 2F”, substitute “in Schedule 2F”.

377  Subsection 102D(1) (note at the end of the definition of net income)

Omit “of Schedule 2F”, substitute “in Schedule 2F”.

378  Section 102M (note at the end of the definition of net income)

Omit “of Schedule 2F”, substitute “in Schedule 2F”.

379  Subsection 102UC(4) (definition of discretionary trust)

Omit “of Schedule 2F”, substitute “in Schedule 2F”.

380  Subsection 102UC(4) (paragraphs (a), (d) and (e) of the definition of excluded trust)

Omit “of Schedule 2F”, substitute “in Schedule 2F”.

381  Subsection 102UC(4) (definition of fixed entitlement)

Omit “of Schedule 2F”, substitute “in Schedule 2F”.

382  Subsection 102UC(4) (definition of indirectly)

Omit “of Schedule 2F”, substitute “in Schedule 2F”.

Income Tax Assessment Act 1997

383  Subsection 25‑35(5) (cell at table item 5, column headed “See:”)

Omit “of Schedule 2F”, substitute “in Schedule 2F”.

384  Section 36‑25

Omit “of Schedule 2F” (wherever occurring), substitute “in Schedule 2F”.

385  Section 109‑60 (cell at table item 9, column headed “See:”)

Omit “of Schedule 2D”, substitute “in Schedule 2D”.

386  Section 109‑60 (cell at table item 10, column headed “See:”)

Omit “of Schedule 2H”, substitute “in Schedule 2H”.

387  Section 112‑97 (cell at table item 5A, column headed “See:”)

Omit “of Schedule 2H”, substitute “in Schedule 2H”.

388  Section 112‑97 (cell at table item 20, column headed “See:”)

Omit “of Schedule 2D”, substitute “in Schedule 2D”.

389  Subsection 128‑15(1) (note 2)

Omit “of Schedule 2D”, substitute “in Schedule 2D”.

390  Subsections 165‑215(5), 165‑220(5), 165‑230(5), 180‑10(1) and 180‑20(1)

Omit “of Schedule 2F”, substitute “in Schedule 2F”.

391  Subsection 230‑460(7)

Omit “Division 323 of Schedule J to the Income Tax Assessment Act 1936”, substitute “Subdivision 321‑C”.

392  Subsection 328‑10(1) (cell at table item 12, column headed “Provision”)

Omit “of Schedule 1”, substitute “in Schedule 1”.

393  Subsection 328‑110(4) (paragraph (a) of the note)

Omit “of Schedule 1”, substitute “in Schedule 1”.

394  Subsection 995‑1(1) (definition of family trust)

Omit “of Schedule 2F”, substitute “in Schedule 2F”.

395  Subsection 995‑1(1) (paragraph (a) of the definition of income for surcharge purposes)

Omit “of Schedule 2F”, substitute “in Schedule 2F”.

396  Subsection 995‑1(1) (note 1 to paragraph (a) of the definition of tax loss)

Omit “of Schedule 2F”, substitute “in Schedule 2F”.

Income Tax (Transitional Provisions) Act 1997

397  Subparagraph 40‑285(2)(a)(ii)

Omit “of Schedule 2D”, substitute “in Schedule 2D”.

Medicare Levy Act 1986

398  Subsection 3(2A)

Omit “of Schedule 2F”, substitute “in Schedule 2F”.

Superannuation Contributions Tax (Assessment and Collection) Act 1997

399  Paragraphs 7A(3)(b) and (c) and 7B(3)(b) and (c)

Omit “of Schedule 2F”, substitute “in Schedule 2F”.


 

Part 30References to taxation laws

Income Tax Assessment Act 1997

400  Subsection 995‑1(1)

Insert:

Excise Acts has the meaning given by the Excise Act 1901.

Taxation Administration Act 1953

401  Subsection 2(1) (at the end of the definition of taxation law)

Add:

Note:          See also subsection (2).

402  Subsection 2(2)

Omit “, and Subdivision 284‑B in Schedule 1 to,”.

403  Paragraph 284‑75(1)(a) in Schedule 1

After “*taxation law”, insert “(other than the *Excise Acts)”.

404  Subsection 284‑75(1) in Schedule 1 (note 1)

Repeal the note.

405  Subsection 284‑75(1) in Schedule 1 (note 2)

Omit “Note 2”, substitute “Note”.

406  Subparagraph 284‑75(4)(a)(ii) in Schedule 1

After “*taxation law”, insert “(other than the *Excise Acts)”.

407  Paragraph 284‑75(4)(b) in Schedule 1

After “taxation law”, insert “(other than the Excise Acts)”.

408  Subparagraph 284‑75(6)(d)(i) in Schedule 1

After “*taxation law”, insert “(other than the *Excise Acts)”.

409  Subparagraph 284‑75(6)(d)(ii) in Schedule 1

After “taxation law”, insert “(other than the Excise Acts)”.

410  Subsection 284‑80(1) in Schedule 1 (table item 2)

After “*taxation law”, insert “(other than the *Excise Acts)”.

411  Subsection 284‑90(1) in Schedule 1 (table items 1 to 3C, column headed “In this situation:”)

Omit “*taxation law”, substitute “*taxation law (other than the *Excise Acts)”.


 

Part 31Other amendments

Income Tax Assessment Act 1936

412  Subsection 170(10AA) (table items 24, 25, 30 (the table item 30 inserted by item 19 of Schedule 1 to the Tax Laws Amendment (2009 Budget Measures No. 2) Act 2009) and 35)

Repeal the table items, substitute:

23

Subdivision 61‑G

Private health insurance offset complementary to Part 2‑2 of the Private Health Insurance Act 2007

24

Subdivision 61‑I

Tax offset for first child

26

Section 83A‑310

Forfeiture of ESS interests acquired under an employee share scheme

28

Section 83A‑340

Rights that become rights to acquire shares

Note:       This item corrects the numbering and order of items in a table.

413  Subsection 202DR(2)

Omit “give”, substitute “given”.

Note:       This item fixes a grammatical error.

Income Tax Assessment Act 1997

414  Subsection 112‑20(3) (note 1)

Omit “Note (1)”, substitute “Note 1”.

Note:       This item fixes a typographical error.

415  Subdivision H of Division 240 (heading)

Repeal the heading, substitute:

Subdivision 240‑HApplication of Division 16E to certain arrangements

Note:       This item fixes a typographical error.

416  Subparagraph 376‑170(4)(a)(i)

Repeal the subparagraph.

Note:       This item repeals a provision that related to a corporation that no longer exists.

417  Subparagraph 705‑25(5)(c)(ii)

Omit “; or” (last occurring).

Note:       This item fixes a typographical error.

418  Subsection 974‑150(2)

Omit “subsection (2)”, substitute “subsection (1)”.

Note:       This item corrects an incorrect cross‑reference.

Income Tax (Transitional Provisions) Act 1997

419  Section 126‑155

Repeal the section.

Note:       This item repeals a spent provision.

Superannuation Legislation Amendment Act 2010

420  Subitem 21(1) of Schedule 1

Omit “Subparagraph 49A(1)(b)(i)”, substitute “Paragraph 49A(1)(b)”.

Note:       This item corrects an incorrect cross‑reference.

Taxation Administration Act 1953

421  Subsection 388‑65(3A) in Schedule 1

Omit “paragraph (1)(c)”, substitute “paragraph (3)(c)”.

422  Application provision

The amendment made by item 421 of this Schedule applies to determinations made under paragraph 388‑65(3)(c) in Schedule 1 to the Taxation Administration Act 1953 on or after 1 April 2004.

Taxation (Interest on Overpayments and Early Payments) Act 1983

423  Section 3C (definition of relevant tax) (table item 50)

Omit “subsection 12ZN(1) of the Student and Youth Assistance Act 1973”, substitute “section 12ZN of the Student Assistance Act 1973”.

Note:       This item corrects an incorrect cross‑reference.

Tax Laws Amendment (2007 Measures No. 5) Act 2007

424  Part 2 of Schedule 12 (heading relating to the Industrial Research and Development Incentives Act 1976)

Repeal the heading.

Note:       This item repeals a heading relating to an Act that is not being amended.

 

 

 

[Minister’s second reading speech made in—

House of Representatives on 24 March 2011

Senate on 14 June 2011]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(68/11)