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Tax Laws Amendment (2011 Measures No. 9) Act 2012

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Act No. 12 of 2012 as made
An Act to amend the law relating to taxation and superannuation, and for other purposes
Administered by: Treasury
Originating Bill: Tax Laws Amendment (2011 Measures No. 9) Bill 2011
Registered 27 Mar 2012
Date of Assent 21 Mar 2012
Table of contents.

 

 

 

 

 

 

Tax Laws Amendment (2011 Measures No. 9) Act 2012

 

No. 12, 2012

 

 

 

 

 

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

  

  


Contents

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

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

3............ Schedule(s)......................................................................................... 5

4............ Amendment of assessments................................................................ 5

Schedule 1—Form for portability of superannuation                                     7

Retirement Savings Accounts Act 1997                                                                   7

Superannuation Industry (Supervision) Act 1993                                              10

Schedule 2—Capital gains tax and certain business restructures          13

Part 1—Share and interest sale facilities for foreign interest holders in a restructure      13

Income Tax Assessment Act 1997                                                                            13

Part 2—CGT demerger relief                                                                                  19

Income Tax Assessment Act 1997                                                                            19

Part 3—Roll‑overs for change of incorporation                                             20

Division 1—Main amendments                                                                              20

Income Tax Assessment Act 1997                                                                            20

Division 2—Consequential amendments                                                              30

Income Tax Assessment Act 1997                                                                            30

Division 3—Application of amendments                                                              32

Income Tax (Transitional Provisions) Act 1997                                                  32

Schedule 3—GST financial supply provisions                                                   34

Part 1—Increasing financial acquisitions threshold                                     34

A New Tax System (Goods and Services Tax) Act 1999                                      34

Part 2—Treatment of borrowings                                                                         35

A New Tax System (Goods and Services Tax) Act 1999                                      35

Part 3—Hire purchase agreements                                                                        36

A New Tax System (Goods and Services Tax) Act 1999                                      36

Schedule 4—New residential premises                                                                    38

Part 1—Amendments                                                                                                  38

A New Tax System (Goods and Services Tax) Act 1999                                      38

Part 2—Application of amendments                                                                   41

Schedule 5—Deductible gift recipients                                                                    43

Income Tax Assessment Act 1997                                                                            43

Schedule 6—Miscellaneous amendments                                                               44

Part 1—Corrections to cross‑references                                                             44

Division 1—Income Tax Assessment Act 1936                                                  44

Division 2—Income Tax Assessment Act 1997                                                  44

Division 3—Citizenship                                                                                            44

Income Tax Assessment Act 1997                                                                            44

Tax Laws Amendment (2006 Measures No. 3) Act 2006                                    45

Division 4—Tax‑related liabilities                                                                           45

Income Tax Assessment Act 1997                                                                            45

Part 2—Repeal of references to Cultural Bequests Program and redundant subsection numbers             46

Division 1—Cultural Bequests Program                                                                46

Income Tax Assessment Act 1997                                                                            46

Income Tax (Transitional Provisions) Act 1997                                                  47

Division 2—Redundant subsection numbers                                                       47

A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999  47

Superannuation Industry (Supervision) Act 1993                                              47

Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Act 1991  47

Part 3—List of tax offsets                                                                                        48

Income Tax Assessment Act 1997                                                                            48

Part 4—Taxation Administration Act 1953                                                     49

Part 5—Foreign superannuation funds                                                               50

Division 1—Pensions and annuities                                                                       50

Income Tax Assessment Act 1936                                                                            50

Division 2—Superannuation lump sums                                                               50

Income Tax (Transitional Provisions) Act 1997                                                  50

Part 6—Asterisks                                                                                                           52

Division 1—A New Tax System (Wine Equalisation Tax) Act 1999               52

Division 2—Trading stock and revenue assets                                                     52

Income Tax Assessment Act 1997                                                                            52

Division 3—Other amendments                                                                              55

Income Tax Assessment Act 1997                                                                            55

Part 7—References to Acts                                                                                      56

A New Tax System (Goods and Services Tax) Act 1999                                      56

Income Tax Assessment Act 1997                                                                            56

Taxation Administration Act 1953                                                                         57

Part 8—Extensions of time                                                                                      59

Income Tax Assessment Act 1997                                                                            59

Part 9—Cessation of membership of GST groups etc.                               60

A New Tax System (Goods and Services Tax) Act 1999                                      60

Part 10—Small business participation percentage                                        61

Division 1—Companies                                                                                            61

Income Tax Assessment Act 1997                                                                            61

Division 2—Discretionary trusts                                                                              61

Income Tax Assessment Act 1997                                                                            61

Part 11—Exempt income                                                                                          64

Division 1—Repeal of spent provisions                                                                 64

Income Tax Assessment Act 1997                                                                            64

Division 2—Lists of exempt income                                                                      66

Income Tax Assessment Act 1997                                                                            66

Division 3—Australian Victim of Terrorism Overseas Payment                       72

Income Tax Assessment Act 1997                                                                            72

Division 4—Amendments contingent on the Clean Energy (Household Assistance Amendments) Act 2011              72

Clean Energy (Household Assistance Amendments) Act 2011                         72

Income Tax Assessment Act 1997                                                                            73

Part 12—Complying superannuation/FHSA life insurance policies    74

Division 1—Virtual PST life insurance policies                                                    74

Income Tax (Transitional Provisions) Act 1997                                                  74

Division 2—Complying superannuation/FHSA life insurance policies           75

Income Tax (Transitional Provisions) Act 1997                                                  75

Part 13—Applications for tax file numbers                                                     76

Income Tax Assessment Act 1936                                                                            76

Part 14—Taxable professional income                                                               77

Income Tax Assessment Act 1997                                                                            77

Part 15—Consolidated groups                                                                               78

Division 1—Partnerships                                                                                          78

Income Tax Assessment Act 1997                                                                            78

Division 2—Amendments applying from 1 July 2002                                       78

Income Tax Assessment Act 1997                                                                            78

Part 16—Demutualisation                                                                                         79

Income Tax Assessment Act 1997                                                                            79

Part 17—Mining and quarrying definitions                                                     80

Income Tax Assessment Act 1997                                                                            80

Part 18—BAS amount                                                                                                82

Income Tax Assessment Act 1997                                                                            82

Part 19—Corporate tax rate                                                                                     83

Income Tax Assessment Act 1997                                                                            83

Taxation Administration Act 1953                                                                         83

Part 20—UK wounds and disability pension                                                 84

Income Tax Assessment Act 1997                                                                            84

Part 21—Repeal of redundant provisions                                                         85

A New Tax System (Goods and Services Tax) Act 1999                                      85

Income Tax Rates Act 1986                                                                                      85

Taxation Administration Act 1953                                                                         85

Part 22—Limited amendment period                                                                 86

Income Tax Assessment Act 1936                                                                            86

Part 23—Definition of managed investment trust                                       89

Tax Laws Amendment (2010 Measures No. 3) Act 2010                                    89

Part 24—Equivalent foreign collective investment vehicles                   90

Taxation Administration Act 1953                                                                         90

Part 25—Self managed superannuation funds                                               91

Division 1—Definition of self managed superannuation fund                         91

Superannuation Industry (Supervision) Act 1993                                              91

Division 2—References to self managed superannuation funds                      93

Income Tax Assessment Act 1997                                                                            93

Superannuation Industry (Supervision) Act 1993                                              93

Taxation Administration Act 1953                                                                         94

Part 26—Untaxed plan cap                                                                                      96

Income Tax Assessment Act 1997                                                                            96

Part 27—Correction of typographical errors                                                   97

Income Tax Assessment Act 1997                                                                            97

Taxation Administration Act 1953                                                                         97

Part 28—Foreign income tax offset, Medicare levy and surcharge     98

Income Tax Assessment Act 1936                                                                            98

Income Tax Assessment Act 1997                                                                          100

Taxation Administration Act 1953                                                                       101

Taxation (Interest on Overpayments and Early Payments) Act 1983            102

Part 29—Adjusted tax                                                                                              103

Taxation Administration Act 1953                                                                       103

Part 30—Section 109CA of the Income Tax Assessment Act 1936 104

Income Tax Assessment Act 1936                                                                          104

Part 31—Franking debits                                                                                        105

Income Tax Assessment Act 1936                                                                          105

 


 

 

Tax Laws Amendment (2011 Measures No. 9) Act 2012

No. 12, 2012

 

 

 

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

[Assented to 21 March 2012]

The Parliament of Australia enacts:

1  Short title

                   This Act may be cited as the Tax Laws Amendment (2011 Measures No. 9) Act 2012.

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 4 and anything in this Act not elsewhere covered by this table

The day this Act receives the Royal Assent.

21 March 2012

2.  Schedule 1

The day after this Act receives the Royal Assent.

22 March 2012

3.  Schedule 2

The day this Act receives the Royal Assent.

21 March 2012

4.  Schedule 3

1 July 2012.

1 July 2012

5.  Schedules 4 and 5

The day this Act receives the Royal Assent.

21 March 2012

 

6.  Schedule 6, Part 1, Divisions 1 and 2

The day this Act receives the Royal Assent.

21 March 2012

7.  Schedule 6, item 7

At the same time as item 42 of Schedule 1 to the Australian Citizenship (Transitionals and Consequentials) Act 2007 commences.

1 July 2007

8.  Schedule 6, items 8 and 9

Immediately after the commencement of section 2 of the Tax Laws Amendment (2006 Measures No. 3) Act 2006.

30 June 2006

9.  Schedule 6, Part 1, Division 4

At the same time as item 29 of Schedule 1 to the Tax Laws Amendment (Transfer of Provisions) Act 2010 commences.

1 July 2010

10.  Schedule 6, Parts 2 and 3

The day this Act receives the Royal Assent.

21 March 2012

11.  Schedule 6, Part 4

Immediately after the commencement of item 1 of Schedule 1 to the A New Tax System (Pay As You Go) Act 1999.

22 December 1999

12.  Schedule 6, Part 5, Division 1

Immediately after the commencement of item 140 of Schedule 1 to the Superannuation Legislation Amendment (Simplification) Act 2007.

15 March 2007

13.  Schedule 6, Part 5, Division 2

The day this Act receives the Royal Assent.

21 March 2012

14.  Schedule 6, Parts 6 to 8

The day this Act receives the Royal Assent.

21 March 2012

15.  Schedule 6, Part 9

The day after this Act receives the Royal Assent.

22 March 2012

16.  Schedule 6, Part 10, Division 1

The day after this Act receives the Royal Assent.

22 March 2012

17.  Schedule 6, Part 10, Division 2

Immediately after the commencement of the provision(s) covered by table item 16.

22 March 2012

18.  Schedule 6, Part 11, Division 1

The day this Act receives the Royal Assent.

21 March 2012

19.  Schedule 6, Part 11, Division 2

Immediately after the commencement of the provision(s) covered by table item 18.

21 March 2012

20.  Schedule 6, Part 11, Division 3

The later of:

(a) immediately after the commencement of the provision(s) covered by table item 19; and

(b) the commencement of item 17 of Schedule 1 to the Social Security Amendment (Supporting Australian Victims of Terrorism Overseas) Act 2012.

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

22 January 2013

(paragraph (b) applies)

21.  Schedule 6, item 144

Immediately after the commencement of item 16 of Schedule 10 to the Clean Energy (Household Assistance Amendments) Act 2011.

However, the provision(s) do not commence at all if that item 16 commences before or at the same time as the provision(s) covered by table item 18.

14 May 2012

22.  Schedule 6, item 145

Immediately after the commencement of item 2 of Schedule 10 to the Clean Energy (Household Assistance Amendments) Act 2011.

14 May 2012

23.  Schedule 6, items 146 to 148

Immediately after the commencement of the provision(s) covered by table item 19.

However, the provision(s) do not commence at all if item 2 of Schedule 10 to the Clean Energy (Household Assistance Amendments) Act 2011 does not commence before that time.

Do not commence

24.  Schedule 6, Part 12, Division 1

The day this Act receives the Royal Assent.

21 March 2012

25.  Schedule 6, Part 12, Division 2

Immediately after the commencement of the provision(s) covered by table item 24.

21 March 2012

26.  Schedule 6, Part 13

The day after this Act receives the Royal Assent.

22 March 2012

27.  Schedule 6, Parts 14 to 18

The day this Act receives the Royal Assent.

21 March 2012

28.  Schedule 6, item 179

At the same time as item 169 of Schedule 3 to the Tax Laws Amendment (2008 Measures No. 4) Act 2008 commences.

3 October 2008

29.  Schedule 6, item 180

Immediately after the commencement of item 115 of Schedule 5 to the Tax Laws Amendment (2010 Measures No. 1) Act 2010.

3 June 2010

30.  Schedule 6, items 181 and 182

At the same time as item 169 of Schedule 3 to the Tax Laws Amendment (2008 Measures No. 4) Act 2008 commences.

3 October 2008

31.  Schedule 6, Parts 20 to 31

The day this Act receives the Royal Assent.

21 March 2012

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.

4  Amendment of assessments

             (1)  Section 170 of the Income Tax Assessment Act 1936 does not prevent the amendment of an assessment if:

                     (a)  the assessment was made before the commencement of Part 8 of Schedule 6 to this Act; and

                     (b)  the amendment is made within 2 years after that commencement; and

                     (c)  the amendment is made for the purpose of giving effect to that Part.

             (2)  Section 170 of the Income Tax Assessment Act 1936 does not prevent the amendment of an assessment if:

                     (a)  the assessment was made before the commencement of Division 1 of Part 10 of Schedule 6 to this Act; and

                     (b)  the amendment is made within 2 years after that commencement; and

                     (c)  the amendment is made for the purpose of giving effect to that Division.

             (3)  Section 170 of the Income Tax Assessment Act 1936 does not prevent the amendment of an assessment if:

                     (a)  the assessment was made before the commencement of Division 2 of Part 10 of Schedule 6 to this Act; and

                     (b)  the amendment is made within 2 years after that commencement; and

                     (c)  the amendment is made for the purpose of giving effect to that Division.


 

Schedule 1Form for portability of superannuation

  

Retirement Savings Accounts Act 1997

1  Subparagraph 3(1)(a)(ii)

Repeal the subparagraph, substitute:

                             (ii)  Division 4 of Part 4 (Other provisions relating to the operation of RSAs); and

2  Subparagraph 3(1)(a)(iii)

Omit “Divisions 2 and 4A”, substitute “the provisions mentioned in subparagraph (e)(ii)”.

3  Paragraph 3(1)(e)

Repeal the paragraph, substitute:

                     (e)  the Commissioner of Taxation has the general administration of:

                              (i)  Division 3 of Part 4 (Portability forms); and

                             (ii)  Division 2 of Part 11, section 138A, Division 4A of Part 11 and subsection 144(1A) (about tax file numbers).

4  Subsection 3(1) (note)

Omit “paragraph (e) is that people who acquire information under Divisions 2 and 4A of Part 11”, substitute “a provision being administered by the Commissioner of Taxation (see paragraph (e)) is that people who acquire information under the provision”.

5  Section 16 (at the end of the definition of Regulator)

Add:

            ; and (d)  the Commissioner of Taxation, if the provision in which it occurs is, or is being applied for the purposes of, a provision that is administered by the Commissioner of Taxation.

6  Before section 37

Insert:

Division 1Object of Part

7  Before section 38

Insert:

Division 2Operating standards

8  After section 39

Insert:

Division 3Portability forms

39A  Portability forms

             (1)  For the purposes of standards made under Division 2, and without limiting that Division, the regulations may prescribe a scheme under which:

                     (a)  the holder of an RSA gives to the Commissioner of Taxation a request for the benefits held for the holder in the RSA to be rolled‑over or transferred; and

                     (b)  the Commissioner may pass the request on to the provider of the RSA.

Note:          The standards may require the provider to act on the request. See paragraph 38(2)(h).

             (2)  The regulations may provide that the request must be given to the Commissioner in the approved form.

Note:          The approved form may require the holder to set out his or her tax file number. See subsection 144(2A).

Division 4Other provisions relating to the operation of RSAs

9  At the end of Division 3 of Part 11

Add:

138A  Portability forms

Requesting tax file numbers

             (1)  The Commissioner of Taxation may request a holder of an RSA to quote the holder’s tax file number to the Commissioner in connection with the operation, or the possible future operation, of a scheme prescribed for the purposes of section 39A (Portability forms).

             (2)  The holder is not obliged to comply with the request, but the regulations made for the purposes of that section may provide that failure to comply with the request affects whether the Commissioner may pass a request on to the provider of the RSA under the prescribed scheme.

Passing on tax file numbers

             (3)  The Commissioner of Taxation may inform the provider of an RSA of the tax file number of a holder of the RSA as part of the Commissioner passing on to the provider a request made by the holder under a scheme prescribed for the purposes of section 39A (Portability forms).

             (4)  If the Commissioner does so, the holder is:

                     (a)  taken to have quoted the tax file number to the provider in connection with the operation or the possible future operation of this Act and the other Superannuation Acts; and

                     (b)  taken to have quoted that tax file number at the time when the Commissioner of Taxation informs the provider of the tax file number.

10  After subsection 144(2)

Insert:

Portability forms

          (2A)  An approved form mentioned in subsection 39A(2) may require the tax file number of the holder making the relevant request to be set out in the request.

Superannuation Industry (Supervision) Act 1993

11  Subparagraph 6(1)(a)(xii)

Omit “(except Division 1)”.

12  Paragraph 6(1)(b)

After “paragraph (f)”, insert “or (g)”.

13  Paragraph 6(1)(g)

Repeal the paragraph, substitute:

                     (g)  the Commissioner of Taxation also has the general administration of:

                              (i)  Division 3 of Part 3 (Portability forms); and

                             (ii)  Division 1 of Part 25A, section 299NA, Division 3A of Part 25A and subsection 299U(2A) (about tax file numbers).

14  Subsection 6(1) (note)

Omit “paragraphs (e), (f) and (g) is that people who acquire information under those provisions (to the extent that they relate to self‑managed superannuation funds)”, substitute “a provision being administered by the Commissioner of Taxation (see paragraphs (e), (f) and (g)) is that people who acquire information under the provision”.

15  Before section 30

Insert:

Division 1Object of Part

16  Before section 31

Insert:

Division 2Operating standards

17  At the end of Part 3

Add:

Division 3Portability forms

34A  Portability forms

             (1)  For the purposes of standards made under Division 2, and without limiting that Division, the regulations may prescribe a scheme under which:

                     (a)  a beneficiary of:

                              (i)  a regulated superannuation fund; or

                             (ii)  an approved deposit fund;

                            gives to the Commissioner of Taxation a request for the benefits held for the beneficiary in the fund to be rolled‑over or transferred; and

                     (b)  the Commissioner may pass the request on to the trustee of the fund.

Note:          The standards may require the trustee to act on the request. See paragraphs 31(2)(i) and 32(2)(d).

             (2)  The regulations may provide that the request must be given to the Commissioner in the approved form.

Note:          The approved form may require the beneficiary to set out his or her tax file number. See subsection 299U(2A).

18  At the end of Division 2 of Part 25A

Add:

299NA  Portability forms

Requesting tax file numbers

             (1)  The Commissioner of Taxation may request a beneficiary of:

                     (a)  a regulated superannuation fund; or

                     (b)  an approved deposit fund;

to quote the beneficiary’s tax file number to the Commissioner in connection with the operation, or the possible future operation, of a scheme prescribed for the purposes of section 34A (Portability forms).

             (2)  The beneficiary is not obliged to comply with the request, but the regulations made for the purposes of that section may provide that failure to comply with the request affects whether the Commissioner may pass a request on to the trustee of the fund under the prescribed scheme.

Passing on tax file numbers

             (3)  The Commissioner of Taxation may inform the trustee of:

                     (a)  a regulated superannuation fund; or

                     (b)  an approved deposit fund;

of the tax file number of a beneficiary of the fund as part of the Commissioner passing on to the trustee a request made by the beneficiary under a scheme prescribed for the purposes of section 34A (Portability forms).

             (4)  If the Commissioner does so, the beneficiary is:

                     (a)  taken to have quoted the tax file number to the trustee in connection with the operation or the possible future operation of this Act and the other Superannuation Acts; and

                     (b)  taken to have quoted that tax file number at the time when the Commissioner informs the trustee of the tax file number.

19  After subsection 299U(2)

Insert:

Portability forms

          (2A)  An approved form mentioned in subsection 34A(2) may require the tax file number of the beneficiary making the relevant request to be set out in the request.


 

Schedule 2Capital gains tax and certain business restructures

Part 1Share and interest sale facilities for foreign interest holders in a restructure

Income Tax Assessment Act 1997

1  At the end of Subdivision 124‑A

Add:

124‑20  Share and interest sale facilities

Share and interest sale facilities

             (1)  An entity (the investor) is treated as owning an *ownership interest (the roll‑over interest) in a company or trust (the issuer) at a time (the deeming time), if:

                     (a)  the investor owned an ownership interest (the original interest) in a company or trust; and

                     (b)  a transaction happened in relation to the original interest; and

                     (c)  because:

                              (i)  a *foreign law impedes the ability of the issuer to issue or transfer the roll‑over interest to the investor; or

                             (ii)  it would be impractical or unreasonably onerous to determine whether a foreign law impedes the ability of the issuer to issue or transfer the roll‑over interest to the investor;

                            it is *arranged that the issuer will issue or transfer the roll‑over interest to another entity (the facility) under the transaction instead of to the investor; and

                     (d)  in accordance with that arrangement and as a result of the transaction, the facility:

                              (i)  becomes the owner of the roll‑over interest; and

                             (ii)  owns the roll‑over interest at the deeming time; and

                     (e)  under the arrangement, the investor is entitled to receive from the facility:

                              (i)  an amount equivalent to the *capital proceeds of any *CGT event that happens in relation to the roll‑over interest (less expenses); or

                             (ii)  if a CGT event happens in relation to the roll‑over interest together with CGT events happening in relation to other ownership interests—an amount equivalent to the investor’s proportion of the total capital proceeds of the CGT events (less expenses).

             (2)  The facility is treated as not owning the roll‑over interest at the deeming time.

             (3)  This section applies for the purposes of:

                     (a)  applying one of the following provisions (the roll‑over provision) in relation to the transaction:

                              (i)  Subdivision 124‑G (Exchange of shares in one company for shares in another company);

                             (ii)  Subdivision 124‑H (Exchange of units in a unit trust for shares in a company);

                            (iii)  Subdivision 124‑I (Change of incorporation);

                            (iv)  Subdivision 124‑N (Disposal of assets by a trust to a company);

                             (v)  Subdivision 124‑Q (Exchange of stapled ownership interests for ownership interests in a unit trust); and

                     (b)  the following provisions, to the extent that they relate to a roll‑over under the roll‑over provision that involves the transaction:

                              (i)  item 2 of the table in subsection 115‑30(1);

                             (ii)  sections 124‑10 and 124‑15.

Incorporated bodies

             (4)  Without limiting this section, it also has effect, in a case covered by subparagraph (3)(a)(iii) (about Subdivision 124‑I), as if each reference in this section to an *ownership interest in a company or trust were a reference to:

                     (a)  an interest in an incorporated body; and

                     (b)  any rights relating to the body owned by the entity that owns that interest.

             (5)  This section applies, in a case covered by subparagraph (3)(a)(iii) (about Subdivision 124‑I), in relation to rights as a *member of a company incorporated under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 in the same way as it applies in relation to *shares in a company.

2  At the end of paragraphs 124‑360(1)(c) and 124‑370(1)(e)

Add:

Note:       See section 124‑20 if an exchanging member uses a share sale facility.

3  Subsections 124‑382(3) and (4)

Repeal the subsections.

4  At the end of paragraphs 124‑445(c) and 124‑455(1)(e)

Add:

Note:       See section 124‑20 if an exchanging member uses a share sale facility.

5  Subsection 124‑860(6) (note)

Omit “Note”, substitute “Note 1”.

6  At the end of subsection 124‑860(6)

Add:

Note 2:       See section 124‑20 if an entity uses an interest sale facility.

7  At the end of paragraph 124‑1045(1)(d)

Add:

Note:       See section 124‑20 if an exchanging member uses an interest sale facility.

8  Section 124‑1065

Repeal the section.

9  At the end of Division 125

Add:

Subdivision 125‑EMiscellaneous

Table of sections

125‑235    Share and interest sale facilities

125‑235  Share and interest sale facilities

Share and interest sale facilities

             (1)  An entity (the investor) is treated as owning an *ownership interest (the roll‑over interest) in a *demerged entity at a time (the deeming time), if:

                     (a)  the investor owned an ownership interest in a company or trust that was the *head entity of a *demerger group; and

                     (b)  a *demerger happens to the demerger group; and

                     (c)  because:

                              (i)  a *foreign law impedes the ability of a member of the demerger group to issue or transfer the roll‑over interest to the investor; or

                             (ii)  it would be impractical or unreasonably onerous to determine whether a foreign law impedes the ability of a member of the demerger group to issue or transfer the roll‑over interest to the investor;

                            it is *arranged that the member will issue or transfer the roll‑over interest to another entity (the facility) under the demerger instead of to the investor; and

                     (d)  in accordance with that arrangement and as a result of the demerger, the facility:

                              (i)  becomes the owner of the roll‑over interest (which is a new or replacement interest in the demerged entity); and

                             (ii)  owns the roll‑over interest at the deeming time; and

                     (e)  under the arrangement, the investor is entitled to receive from the facility:

                              (i)  an amount equivalent to the *capital proceeds of any *CGT event that happens in relation to the roll‑over interest (less expenses); or

                             (ii)  if a CGT event happens in relation to the roll‑over interest together with CGT events happening in relation to other ownership interests—an amount equivalent to the investor’s proportion of the total capital proceeds of the CGT events (less expenses).

             (2)  The facility is treated as not owning the roll‑over interest at the deeming time.

             (3)  This section applies for the purposes of:

                     (a)  applying this Division in relation to the demerger; and

                     (b)  item 2 of the table in subsection 115‑30(1), to the extent that it relates to a roll‑over under this Division that involves the demerger.

10  At the end of Subdivision 126‑G

Add:

126‑265  Interest sale facilities

Interest sale facilities

             (1)  For the purposes of this Subdivision, an entity (the investor) is treated as owning a *membership interest (the roll‑over interest) in the receiving trust at a time (the deeming time), if:

                     (a)  the investor owned a membership interest in the transferring trust; and

                     (b)  a trust is created, or a transfer happens, (the transaction) as mentioned in paragraph 126‑225(1)(a) in relation to *CGT assets of the transferring trust; and

                     (c)  because:

                              (i)  a *foreign law impedes the ability of the receiving trust to issue or transfer the roll‑over interest to the investor; or

                             (ii)  it would be impractical or unreasonably onerous to determine whether a foreign law impedes the ability of the receiving trust to issue or transfer the roll‑over interest to the investor;

                            it is *arranged that the receiving trust will issue or transfer the roll‑over interest to another entity (the facility) under the transaction instead of to the investor; and

                     (d)  in accordance with that arrangement and as a result of the transaction, the facility:

                              (i)  becomes the owner of the roll‑over interest; and

                             (ii)  owns the roll‑over interest at the deeming time; and

                     (e)  under the arrangement, the investor is entitled to receive from the facility:

                              (i)  an amount equivalent to the *capital proceeds of any *CGT event that happens in relation to the roll‑over interest (less expenses); or

                             (ii)  if a CGT event happens in relation to the roll‑over interest together with CGT events happening in relation to other membership interests—an amount equivalent to the investor’s proportion of the total capital proceeds of the CGT events (less expenses).

             (2)  The facility is treated as not owning the roll‑over interest at the deeming time.

11  Application of amendments

The amendments made by this Part apply to CGT events happening after 7.30 pm (by legal time in the Australian Capital Territory) on 11 May 2010.


 

Part 2CGT demerger relief

Income Tax Assessment Act 1997

12  After subsection 125‑65(2)

Insert:

          (2A)  Neither a corporation sole nor a *complying superannuation entity is a member of a *demerger group.

13  Paragraph 125‑70(1)(g)

Omit “*superannuation fund”, substitute “*non‑complying superannuation fund”.

14  Application of amendments

The amendments made by this Part apply to CGT events happening after 7.30 pm (by legal time in the Australian Capital Territory) on 11 May 2010.


 

Part 3Roll‑overs for change of incorporation

Division 1—Main amendments

Income Tax Assessment Act 1997

15  Subdivision 124‑I

Repeal the Subdivision, substitute:

Subdivision 124‑IChange of incorporation

Guide to Subdivision 124‑I

124‑510  What this Subdivision is about

Roll‑over relief is available for members of a body that is incorporated under one law and is converted to, or replaced with, a body incorporated under another law.

Table of sections

Object of this Subdivision

124‑515    Object of this Subdivision

Change of incorporation without change of entity

124‑520    Change of incorporation without change of entity

Old corporation wound up

124‑525    Old corporation wound up

Special consequences of some roll‑overs

124‑530    Shares in company replacing pre‑CGT and post‑CGT mix of interest and rights in body

124‑535    Rights as member of Indigenous corporation replacing pre‑CGT and post‑CGT mix of interest and rights in body

Object of this Subdivision

124‑515  Object of this Subdivision

                   The object of this Subdivision is to ensure that CGT considerations for *members of a body incorporated under a law do not impede a change of incorporation involving converting the body to, or replacing it with, a company incorporated under:

                     (a)  the Corporations Act 2001 or a similar *foreign law; or

                     (b)  the Corporations (Aboriginal and Torres Strait Islander) Act 2006.

Note:          Subdivision 620‑A provides a roll‑over for the assets of the body.

Change of incorporation without change of entity

124‑520  Change of incorporation without change of entity

             (1)  This section applies if:

                     (a)  you are a *member of a body incorporated under a law described in column 1 of an item of the table; and

                     (b)  the body is converted into a company incorporated under a law described in column 2 of the item, without creating a new legal entity; and

                     (c)  it is reasonable to conclude that there is no significant difference:

                              (i)  between the ownership of the body, and of rights relating to the body held by entities that owned the body, just before the conversion and the ownership of the company just after the conversion; or

                             (ii)  between the mix of ownership of the body, and of rights relating to the body held by entities that owned the body, just before the conversion and the mix of ownership of the company just after the conversion.

Note:       See section 124‑20 if an entity uses a share or interest sale facility.

 

Laws the body and company are incorporated under

 

Column 1

Body incorporated under this law

Column 2

Company incorporated under this law

1

A law other than the Corporations Act 2001 and a similar *foreign law relating to companies

The Corporations Act 2001 or a similar foreign law relating to companies

2

A law other than the Corporations (Aboriginal and Torres Strait Islander) Act 2006

The Corporations (Aboriginal and Torres Strait Islander) Act 2006

             (2)  You can choose to obtain a roll‑over if:

                     (a)  as a result of the conversion you are issued with *shares in the company and you receive nothing else; and

                     (b)  either you are an Australian resident at the time of the conversion or, if you are a foreign resident at that time:

                              (i)  each of your interest and your other rights (if any) relating to the body was *taxable Australian property just before that time; and

                             (ii)  the shares are taxable Australian property when they are issued.

Note 1:       The roll‑over consequences are set out in Subdivision 124‑A and section 124‑530.

Note 2:       Section 103‑25 tells you when you have to make the choice.

             (3)  If the company is incorporated under the Corporations (Aboriginal and Torres Strait Islander) Act 2006, subsection (2) applies in relation to rights as a *member of the company in the same way as that subsection applies to *shares in a company.

Note:          This may allow you to choose to obtain a roll‑over. The roll‑over consequences are set out in Subdivision 124‑A and section 124‑535.

Exception for demutualisation of certain bodies

             (4)  This section does not apply to demutualisation of a body if Division 326 in Schedule 2H to the Income Tax Assessment Act 1936 applies to the demutualisation.

Note:          That Division deals with demutualisation of entities other than insurance companies and health insurers.

Old corporation wound up

124‑525  Old corporation wound up

             (1)  This section applies if:

                     (a)  a body is incorporated under a law described in column 1 of an item of the table; and

                     (b)  a company is incorporated under a law described in column 2 of the item; and

                     (c)  the body ceases to exist, but the company continues to exist, after the time (the switch time) the *members of the body receive *shares in the company, or rights as members of it if it is incorporated under the Corporations (Aboriginal and Torres Strait Islander) Act 2006, on account of:

                              (i)  their interests in the body; and

                             (ii)  their other rights (if any) relating to the body; and

                     (d)  the members of the body do not receive anything else on account of the expected ending of those interests and rights; and

                     (e)  it is reasonable to conclude that there is no significant difference:

                              (i)  between the ownership of the body, and of rights relating to the body held by entities that owned the body, just before the switch time and the ownership of the company just after the switch time; or

                             (ii)  between the mix of ownership of the body, and of rights relating to the body held by entities that owned the body, just before the switch time and the mix of ownership of the company just after the switch time; and

Note:       See section 124‑20 if an entity uses a share or interest sale facility.

                      (f)  the body *disposes of all its *CGT assets to the company, except any assets expected to be needed to meet the body’s existing or expected liabilities before it ceases to exist.

 

Laws the body and company are incorporated under

 

Column 1

Body incorporated under this law

Column 2

Company incorporated under this law

1

A law other than the Corporations Act 2001 and a similar *foreign law relating to companies

The Corporations Act 2001 or a similar foreign law relating to companies

2

A law other than the Corporations (Aboriginal and Torres Strait Islander) Act 2006

The Corporations (Aboriginal and Torres Strait Islander) Act 2006

             (2)  You can choose to obtain a roll‑over if:

                     (a)  you were a *member of the body just before the switch time; and

                     (b)  your ownership of your interest in the body ends at a time (the end time) after the switch time; and

                     (c)  at the end time you have the *shares in the company that you received at the switch time; and

                     (d)  either you are an Australian resident at the end time or, if you are a foreign resident at the end time:

                              (i)  each of your interest in the body and your other rights (if any) relating to the body was *taxable Australian property just before the end time; and

                             (ii)  the shares in the company that you received at the switch time are taxable Australian property at the end time.

Note 1:       The roll‑over consequences are set out in Subdivision 124‑A and section 124‑530.

Note 2:       Section 103‑25 tells you when you have to make the choice.

             (3)  If the company is incorporated under the Corporations (Aboriginal and Torres Strait Islander) Act 2006, subsection (2) applies in relation to rights as a *member of the company in the same way as that subsection applies to *shares in a company.

Note:          This may allow you to choose to obtain a roll‑over. The roll‑over consequences are set out in Subdivision 124‑A and section 124‑535.

Special consequences of some roll‑overs

124‑530  Shares in company replacing pre‑CGT and post‑CGT mix of interest and rights in body

             (1)  This section applies if:

                     (a)  you choose to obtain a roll‑over under section 124‑520 or 124‑525 relating to *shares you have in the company on account of the following (your original assets):

                              (i)  your interest in the body mentioned in that section;

                             (ii)  your other rights relating to the body mentioned in that section; and

                     (b)  you *acquired some of your original assets before 20 September 1985 and the rest of them on or after that day.

             (2)  You are taken to have *acquired so many of the *shares before 20 September 1985 as is reasonable, having regard to:

                     (a)  the number and *market value of your original assets; and

                     (b)  the number and market value of the shares.

             (3)  The first element of the *cost base of each of the *shares not taken by subsection (2) to have been *acquired before 20 September 1985 (your post‑CGT shares) is such amount as is reasonable having regard to:

                     (a)  the total of the cost bases of your original assets that you acquired on or after 20 September 1985; and

                     (b)  the number and *market value of your post‑CGT shares.

             (4)  The reduced cost base of each of your post‑CGT shares is worked out similarly.

             (5)  This section has effect despite subsections 124‑15(5) and (6).

124‑535  Rights as member of Indigenous corporation replacing pre‑CGT and post‑CGT mix of interest and rights in body

             (1)  This section applies if:

                     (a)  you choose to obtain a roll‑over under section 124‑520 or 124‑525 relating to rights (the replacement rights) you have as a *member of a company incorporated under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 on account of the following (your original assets):

                              (i)  your interest in the body mentioned in that section;

                             (ii)  your other rights relating to the body mentioned in that section; and

                     (b)  you *acquired any of your original assets before 20 September 1985.

             (2)  You are taken to have *acquired the replacement rights before 20 September 1985.

             (3)  This section has effect despite subsection 124‑15(5).

16  Before Part 3‑90

Insert:

Part 3‑80Roll‑overs applying to assets generally

Division 620Assets of wound‑up corporation passing to corporation with not significantly different ownership

Table of Subdivisions

620‑A   Corporations covered by Subdivision 124‑I

Subdivision 620‑ACorporations covered by Subdivision 124‑I

Guide to Subdivision 620‑A

620‑5  What this Subdivision is about

There are tax‑neutral consequences of a body, that is incorporated under one law and ceases to exist, disposing of an asset to a company incorporated under another law, if the ownership of the company is not significantly different from the ownership of the body.

Table of sections

Application and object of this Subdivision

620‑10      Application

620‑15      Object

CGT consequences

620‑20      Disregard body’s capital gains and losses from CGT assets

620‑25      Cost base and pre‑CGT status of CGT asset for company

Consequences for depreciating assets

620‑30      Roll‑over relief for balancing adjustment events

Consequences for trading stock

620‑40      Body taken to have sold trading stock to company

Consequences for revenue assets

620‑50      Body taken to have sold revenue assets to company

Application and object of this Subdivision

620‑10  Application

                   This Subdivision applies to a body that is incorporated under one law and ceases to exist, and to a company incorporated under another law, if section 124‑525 applies in relation to the body and the company.

Note:          That section applies if the ownership of the company is not significantly different from the ownership of the body and rights relating to the body.

620‑15  Object

                   The object of this Subdivision is to ensure tax‑neutral consequences when the body ceases to hold an asset and also if the asset becomes held by the company.

CGT consequences

620‑20  Disregard body’s capital gains and losses from CGT assets

             (1)  This section applies if:

                     (a)  the body *disposes of a *CGT asset to the company because the body ceases to exist; or

                     (b)  another *CGT event happens to a CGT asset of the body because the body ceases to exist.

             (2)  A *capital gain or a *capital loss the body makes from the *CGT asset is disregarded.

620‑25  Cost base and pre‑CGT status of CGT asset for company

             (1)  This section applies to a *CGT asset if the body *disposes of it to the company because the body ceases to exist.

             (2)  The first element of the *CGT asset’s *cost base for the company is equal to the asset’s cost base for the body in connection with the *disposal.

             (3)  The first element of the *CGT asset’s *reduced cost base for the company is worked out similarly.

             (4)  If the body *acquired the *CGT asset before 20 September 1985, the company is taken to have acquired the CGT asset before that day.

Consequences for depreciating assets

620‑30  Roll‑over relief for balancing adjustment events

             (1)  This section applies if:

                     (a)  there is a *balancing adjustment event because the body disposes of a *depreciating asset in an income year to the company because the body ceases to exist; and

                     (b)  the disposal involves a *CGT event.

             (2)  This Act applies as if:

                     (a)  there were roll‑over relief under subsection 40‑340(1) for the *balancing adjustment event; and

                     (b)  the body were the transferor mentioned in that subsection and subsection 328‑243(1A); and

                     (c)  the company were the transferee mentioned in that subsection and subsection 328‑243(1A).

Note:          Some effects of this are as follows:

(a)    the balancing adjustment event does not affect the body’s assessable income or deductions (see subsection 40‑345(1));

(b)    the company can deduct for the decline in value of the asset on the same basis as the body did (see subsection 40‑345(2));

(c)    Division 45 (Disposal of leases and leased plant) applies to the company as if it had done the things the body did (see subsection 40‑350(1)).

             (3)  Disregard paragraph 328‑243(1A)(c) in determining whether subsection 328‑243(1A) applies.

Consequences for trading stock

620‑40  Body taken to have sold trading stock to company

             (1)  This subsection applies to each item of *trading stock that the body disposes of to the company because the body ceases to exist.

             (2)  The body is taken to have sold, and the company is taken to have bought, the item (in the ordinary course of *business and dealing with each other at arm’s length), at the time of the disposal (or just before that time if the disposal occurred when the body ceased to exist), for:

                     (a)  the *cost of the item for the body; or

                     (b)  if the body held the item as *trading stock at the start of the income year, the *value of the item for the body then.

             (3)  The company is taken to have held the item as *trading stock when it bought the item.

Consequences for revenue assets

620‑50  Body taken to have sold revenue assets to company

Disposal

             (1)  Subsections (2) and (3) apply to a *CGT asset:

                     (a)  that the body *disposes of to the company because the body ceases to exist; and

                     (b)  that is a *revenue asset of the body just before the disposal.

Note:       Trading stock and depreciating assets are not revenue assets. See section 977‑50.

             (2)  The body is taken to have disposed of the *revenue asset to the company for an amount such that the body would not make a profit or a loss on the disposal.

             (3)  For the purpose of calculating any profit or loss on a future disposal of, cessation of owning, or other realisation of, the *revenue asset, the company is taken to have paid the body that amount for the disposal of the revenue asset to the company.

Ceasing to own or other realising

             (4)  Subsection (5) applies to a *CGT asset:

                     (a)  that the body ceases to own, or otherwise realises, because the body ceases to exist; and

                     (b)  that is a *revenue asset of the body just before the cessation or realisation.

Note:       Trading stock and depreciating assets are not revenue assets. See section 977‑50.

             (5)  The body is taken to have disposed of the *revenue asset for an amount such that the body would not make a profit or a loss on the disposal.

Division 2—Consequential amendments

Income Tax Assessment Act 1997

17  Subsection 40‑340(1) (note)

Omit “Note:”, substitute “Note 1:”.

18  At the end of subsection 40‑340(1)

Add:

Note 2:       This Act also applies as if there were roll‑over relief under this subsection in the circumstances set out in section 620‑30 (which is about a body incorporated under one law ceasing to exist and disposing of its assets to a company incorporated under another law that has not significantly different ownership).

19  At the end of subsection 70‑80(1)

Add:

Note:          An incorporated body is treated as disposing of an item of its trading stock in the ordinary course of business if the body ceases to exist and disposes of the asset to a company that has not significantly different ownership: see Division 620.

20  After section 112‑53AA

Insert:

112‑53AB  Change of incorporation

 

Change of incorporation

Item

In this situation:

Element affected:

See section:

1

Shares in company that has changed its incorporation or has ownership not significantly different from that of a former body incorporated under another law

First element of cost base and reduced cost base

124‑530

21  Section 112‑97 (at the end of the table)

Add:

35

A CGT asset is held by a company that has ownership not significantly different from that of a former body that held the asset and was incorporated under another law

First element of cost base and reduced cost base

Section 620‑25

22  Section 112‑115 (cell at table item 11, column headed “For the rules about this roll‑over:”)

Repeal the cell, substitute:

Change of incorporation

23  Section 112‑150 (at the end of the table)

Add:

11

Corporations covered by Subdivision 124‑I

sections 620‑10, 620‑15, 620‑20 and 620‑25

Division 3—Application of amendments

Income Tax (Transitional Provisions) Act 1997

24  At the end of Division 124

Add:

Subdivision 124‑IChange of incorporation

Table of sections

124‑510    Application of Subdivision 124‑I of the Income Tax Assessment Act 1997

124‑510  Application of Subdivision 124‑I of the Income Tax Assessment Act 1997

                   Subdivision 124‑I of the Income Tax Assessment Act 1997, as amended by Schedule 2 to the Tax Laws Amendment (2011 Measures No. 9) Act 2012, applies to CGT events happening after 7.30 pm (by legal time in the Australian Capital Territory) on 11 May 2010.

25  After Part 3‑45

Insert:

Part 3‑80Roll‑overs applying to assets generally

Division 620Assets of wound‑up corporation passing to corporation with not significantly different ownership

Table of Subdivisions

620‑A   Corporations covered by Subdivision 124‑I

Subdivision 620‑ACorporations covered by Subdivision 124‑I

Table of sections

620‑10      Application of Subdivision 620‑A of the Income Tax Assessment Act 1997

620‑10  Application of Subdivision 620‑A of the Income Tax Assessment Act 1997

                   Subdivision 620‑A of the Income Tax Assessment Act 1997 applies in relation to the cessation of existence of bodies corporate occurring after 7.30 pm (by legal time in the Australian Capital Territory) on 11 May 2010.


 

Schedule 3GST financial supply provisions

Part 1Increasing financial acquisitions threshold

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

1  Paragraphs 189‑5(1)(a) and (2)(a)

Omit “$50,000”, substitute “$150,000”.

2  Paragraphs 189‑10(1)(a) and (2)(a)

Omit “$50,000”, substitute “$150,000”.

3  Application of amendments

The amendments made by this Part apply for working out whether you exceed the financial acquisitions threshold at a time during July 2012 or a later month.


 

Part 2Treatment of borrowings

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

4  Paragraph 11‑15(5)(a)

After “borrowing”, insert “(other than through a *deposit account you make available)”.

5  Section 195‑1

Insert:

deposit account: an account is a deposit account if:

                     (a)  the account is made available by an Australian ADI (within the meaning of the Corporations Act 2001) in the course of carrying on a banking business (within the meaning of the Banking Act 1959); and

                     (b)  amounts credited to the account represent money taken by the ADI on deposit (other than as part‑payment for identified goods or services); and

                     (c)  amounts credited to the account do not relate to a debenture (as defined in section 9 of the Corporations Act 2001) of the ADI.

6  Application of amendments

The amendments made by this Part apply in relation to acquisitions made on or after 1 July 2012.


 

Part 3Hire purchase agreements

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

7  Section 29‑39 (after table item 8A)

Insert:

8AA

Hire purchase agreements

Division 158

8  Section 29‑69 (at the end of the table)

Add:

2

Hire purchase agreements

Division 158

9  After section 156‑22

Insert:

156‑23  Certain supplies or acquisitions under hire purchase agreements treated as not on progressive or periodic basis

                   For the purposes of this Division, a supply or acquisition of goods or credit under a *hire purchase agreement is treated as not being a supply or acquisition made on a progressive or periodic basis.

10  After Division 157

Insert:

Division 158Hire purchase agreements

158‑1  What this Division is about

If you account on a cash basis, you are treated as if you do not account on a cash basis for any acquisition made under a hire purchase agreement.

158‑5  Treat as not accounting on a cash basis

             (1)  This section applies if you *account on a cash basis.

             (2)  This Act and the regulations apply in relation to:

                     (a)  an acquisition you make under a *hire purchase agreement; or

                     (b)  an input tax credit to which you are entitled, or an *adjustment you have, under subsection 58‑10(1) for an acquisition made under a hire purchase agreement;

as if you do not *account on a cash basis.

11  Application of amendments

The amendments made by this Part apply in relation to hire purchase agreements entered into on or after 1 July 2012.


 

Schedule 4New residential premises

Part 1Amendments

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

1  Before subsection 40‑75(1)

Insert:

When premises are new residential premises

2  At the end of subsection 40‑75(1)

Add:

Paragraphs (b) and (c) have effect subject to paragraph (a).

Note 1:       For example, residential premises will be new residential premises if they are created as described in paragraph (b) or (c) to replace earlier premises that had ceased to be new residential premises because of paragraph (a).

Note 2:       However, premises that are new residential premises because of paragraph (b) or (c) will cease to be new residential premises once they are sold, or supplied by way of long‑term lease, as residential premises (see paragraph (a)).

Note 3:       Premises created because of the registration of, for example, a strata title plan, or a plan to subdivide land, may not become new residential premises (see subsection (2AA)).

3  Subsection 40‑75(2)

Omit “premises are not new residential premises”, substitute “*residential premises are not new residential premises”.

4  Paragraph 40‑75(2)(a)

Omit “*residential premises”, substitute “residential premises”.

5  After subsection 40‑75(2)

Insert:

Subdivisions etc. may not result in new residential premises

       (2AA)  Despite subsection (1), the *residential premises are not new residential premises if:

                     (a)  they are created from residential premises that became the subject of a *property subdivision plan; and

                     (b)  the residential premises referred to in paragraph (a) were not new residential premises immediately before they became the subject of that plan.

This subsection has effect subject to paragraphs (1)(b) and (c).

6  Before subsection 40‑75(2A)

Insert:

Disregard certain supplies of the premises

7  Subsection 40‑75(2A)

Omit “premises is disregarded as a sale”, substitute “*residential premises is disregarded as a sale or supply”.

8  After subsection 40‑75(2A)

Insert:

          (2B)  A supply (the wholesale supply) of the *residential premises is disregarded as a sale or supply for the purposes of applying paragraph (1)(a) if:

                     (a)  the premises from which the residential premises were created had earlier been supplied to the *recipient of the wholesale supply or one or more of its *associates; and

                     (b)  an arrangement (including an agreement) was made by:

                              (i)  the supplier of the earlier supply, or one or more associates of the supplier; and

                             (ii)  the recipient of the earlier supply, or one or more associates of the recipient; and

                     (c)  under the arrangement, the wholesale supply was conditional on:

                              (i)  specified building or renovation work being undertaken by the recipient of the earlier supply, or by one or more associates of the recipient; or

                             (ii)  circumstances existing as specified in regulations made for the purposes of this subparagraph.

Note 1:       The premises referred to in paragraph (a) could be vacant land.

Note 2:       For subparagraph (c)(ii), circumstances may be specified by class (see subsection 13(3) of the Legislative Instruments Act 2003).

Note 3:       This subsection does not apply to a supply if certain commercial commitments were in place before 27 January 2011 (see item 12 of Schedule 4 to the Tax Laws Amendment (2011 Measures No. 9) Act 2012).

          (2C)  A supply of the *residential premises is disregarded as a sale or supply for the purposes of applying paragraph (1)(a) if it is made because a *property subdivision plan relating to the premises was lodged for registration (however described) by the *recipient of the supply or the recipient’s *associate.

Note:          This subsection does not apply to a supply if the plan was lodged for registration before 27 January 2011 (see item 13 of Schedule 4 to the Tax Laws Amendment (2011 Measures No. 9) Act 2012).

9  Before subsection 40‑75(3)

Insert:

New residential premises include associated land

10  Section 195‑1

Insert:

property subdivision plan means a plan:

                     (a)  for the division of *real property; and

                     (b)  that is registered (however described) under an *Australian law.

Note:          Examples are strata title plans and plans to subdivide land.


 

Part 2Application of amendments

11  Application of amendments

(1)       The amendments made by this Schedule (other than item 2) apply in relation to supplies of residential premises on or after 27 January 2011.

(2)       Subitem (1) has effect subject to items 12 and 13.

(3)       The amendment made by item 2 applies in relation to supplies of residential premises on or after the day after this Schedule commences.

12  Exception—arrangements made before 27 January 2011 to develop premises

(1)       Subsection 40‑75(2B) of the A New Tax System (Goods and Services Tax) Act 1999 (as inserted by this Schedule) does not apply to a supply (the wholesale supply) of residential premises if:

                     (a)  the wholesale supply happens:

                              (i)  on or after 27 January 2011; or

                             (ii)  before 27 January 2011, and the next supply of the residential premises happens on or after 27 January 2011; and

                     (b)  subitem (2) is satisfied in relation to the wholesale supply.

(2)       This subitem is satisfied in relation to the wholesale supply if:

                     (a)  the premises from which the residential premises were created had earlier been supplied to the recipient of the wholesale supply or one or more of its associates; and

                     (b)  immediately before 27 January 2011, the recipient of the wholesale supply or one or more of its associates were commercially committed to an arrangement; and

                     (c)  under the arrangement, the wholesale supply was conditional on specified building or renovation work being undertaken by the recipient of the wholesale supply or by one or more of its associates; and

                     (d)  no GST return (as amended) given to the Commissioner reports a net amount for a tax period that includes amounts equivalent to the input tax credits that the recipient of the wholesale supply would have been entitled to if its acquisitions relating to the next sale or long term lease of the residential premises were creditable acquisitions.

Note:       The premises referred to in paragraph (a) could be vacant land.

(3)       In this item:

arrangement includes an agreement.

commercially committed: to be commercially committed, in relation to an arrangement, means:

                     (a)  to be a party to the arrangement, where the arrangement is legally binding; or

                     (b)  to be the preferred tenderer (however described) in the final step in a bidding or tendering process relating to the arrangement; or

                     (c)  to have directly made (with associates) acquisitions, having a total GST exclusive value of at least $200,000, in relation to the arrangement; or

                     (d)  to have directly incurred (with associates) internal direct costs, of at least $200,000, in relation to the arrangement.

13  Exception—property subdivision plans lodged for registration before 27 January 2011

Subsection 40‑75(2C) of the A New Tax System (Goods and Services Tax) Act 1999 (as inserted by this Schedule) does not apply to a supply of residential premises on or after 27 January 2011 if the supply is made because a property subdivision plan relating to the premises was lodged for registration (however described) before 27 January 2011 by the recipient of the supply or the recipient’s associate.


 

Schedule 5Deductible gift recipients

  

Income Tax Assessment Act 1997

1  Subsection 30‑70(2) (cell at table item 8.2.12, column headed “Fund, authority or institution”)

Repeal the cell, substitute:

Playgroup Australia Limited

2  Subsection 30‑80(2) (at the end of the table)

Add:

9.2.24

Rhodes Trust in Australia

the gift must be made after 21 October 2011

3  Subsection 30‑315(2) (cell at table item 86AA, column without a heading)

Repeal the cell, substitute:

Playgroup Australia Limited

4  Subsection 30‑315(2) (after table item 97)

Insert:

97AAA

Rhodes Trust in Australia

item 9.2.24

5  Application of amendments

(1)       The amendments made by items 1 and 3 of this Schedule apply to gifts made after 25 October 2010.

(2)       The amendments made by items 2 and 4 of this Schedule apply to gifts made after 21 October 2011.


 

Schedule 6Miscellaneous amendments

Part 1Corrections to cross‑references

Division 1—Income Tax Assessment Act 1936

1  Paragraph 102MA(2)(a)

Repeal the paragraph.

2  After paragraph 102MA(2)(b)

Insert:

                   (ba)  an arrangement to which Division 242 (about leases of luxury cars) of the Income Tax Assessment Act 1997 applies; or

Division 2—Income Tax Assessment Act 1997

3  Subsection 207‑59(1)

Omit “Subsection (3)”, substitute “Subsection (2)”.

4  Subsections 230‑380(2) and (3)

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

5  Paragraph 230‑380(6)(a)

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

6  Subsection 995‑1(1) (definition of non‑arm’s length limited recourse debt)

Omit “subsection 243‑20(6)”, substitute “subsection 243‑20(7)”.

Division 3—Citizenship

Income Tax Assessment Act 1997

7  Paragraph 30‑37(a)

Omit “Australian Citizenship Act 1948”, substitute “Australian Citizenship Act 2007”.

Tax Laws Amendment (2006 Measures No. 3) Act 2006

8  Subsection 2(1) (table item 10)

Repeal the item.

Note:       This item and item 9 repeal provisions made redundant by item 7.

9  Item 3 of Schedule 11

Repeal the item.

Division 4—Tax‑related liabilities

Income Tax Assessment Act 1997

10  Paragraph 721‑25(1A)(a)

Omit “item 25”, substitute “item 3”.


 

Part 2Repeal of references to Cultural Bequests Program and redundant subsection numbers

Division 1—Cultural Bequests Program

Income Tax Assessment Act 1997

11  Subsection 30‑5(1)

Omit “, or a testamentary gift under the Cultural Bequests Program”.

12  Subsection 30‑5(1) (note 1)

Repeal the note.

13  Subsection 30‑5(1) (note 2)

Omit “Note 2”, substitute “Note”.

14  Subsection 30‑15(2) (note 1)

Repeal the note.

15  Subsection 30‑15(2) (note 2)

Omit “Note 2”, substitute “Note”.

16  Section 30‑115

Omit “, 30‑B or 30‑D”, substitute “or 30‑B”.

17  Subdivision 30‑D

Repeal the Subdivision.

18  Section 30‑315 (table item 41)

Repeal the item.

19  Paragraph 104‑185(2)(c)

Repeal the paragraph.

20  Subsection 118‑60(1)

Omit “under the Cultural Bequests Program or”.

Income Tax (Transitional Provisions) Act 1997

21  Sections 30‑10, 30‑15 and 30‑20

Repeal the sections.

Division 2—Redundant subsection numbers

A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999

22  Subsection 11(1)

Omit “(1)”.

Superannuation Industry (Supervision) Act 1993

23  Subsection 252(1)

Omit “(1)”.

Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Act 1991

24  Subsection 7(1)

Omit “(1)”.


 

Part 3List of tax offsets

Income Tax Assessment Act 1997

25  Section 13‑1 (after table item headed “farm help income support”)

Insert:

film

 

.................................................................................................

Division 376

26  Section 13‑1 (after table item headed “life assurance”)

Insert:

life insurance company

 

subsidiary joining consolidated group .............................

713‑545(5)


 

Part 4Taxation Administration Act 1953

27  Subsection 2(1)

Insert:

approved form has the meaning given by Schedule 1.

28  After subsection 3AA(1)

Insert:

Definitions in Schedule 1 do not apply to rest of Act

          (1A)  So far as a provision in Schedule 1 gives an expression a particular meaning, the provision does not also have effect for the purposes of this Act (other than Schedule 1), except as provided in this Act (other than Schedule 1).

29  Paragraph 8C(1)(a)

Omit “to furnish an approved form or any information”, substitute “to give any information or document”.


 

Part 5Foreign superannuation funds

Division 1—Pensions and annuities

Income Tax Assessment Act 1936

30  Paragraph 603(1)(h)

Before “Division 82”, insert “section 27H of this Act,”.

31  Application of amendment

The amendment made by this Division applies to the 2007‑08 income year and later income years.

Division 2—Superannuation lump sums

Income Tax (Transitional Provisions) Act 1997

32  After Division 304

Insert:

Division 305Superannuation benefits paid from non‑complying superannuation plans

Table of Subdivisions

305‑B    Superannuation benefits from foreign superannuation funds

Subdivision 305‑BSuperannuation benefits from foreign superannuation funds

Table of sections

305‑80      Lump sums paid into complying superannuation plans post‑FIF abolition

305‑80  Lump sums paid into complying superannuation plans post‑FIF abolition

             (1)  You are entitled to a deduction for an income year (the deduction year) if:

                     (a)  you have an interest in a FIF (within the meaning of Part XI of the Income Tax Assessment Act 1936, as in force just before the commencement of item 37 of Schedule 1 to the Tax Laws Amendment (Foreign Source Income Deferral) Act (No. 1) 2010) (the paying fund); and

                     (b)  Subdivision 305‑B of the Income Tax Assessment Act 1997 applies in relation to the paying fund (see section 305‑55 of that Act); and

                     (c)  the paying fund transfers an amount to a complying superannuation fund in respect of you during the deduction year; and

                     (d)  you choose under section 305‑80 of the Income Tax Assessment Act 1997 that the amount, or part of the amount, is to be treated as assessable income of the complying superannuation fund; and

                     (e)  immediately before the transfer happens, there is a post‑FIF abolition surplus (within the meaning of the Income Tax Assessment Act 1936) for the paying fund in relation to you; and

                      (f)  the deduction year is the 2010‑11 income year or a later income year.

             (2)  The amount of the deduction is the lesser of:

                     (a)  the post‑FIF abolition surplus; and

                     (b)  the amount covered by your choice mentioned in paragraph (1)(d).


 

Part 6Asterisks

Division 1—A New Tax System (Wine Equalisation Tax) Act 1999

33  Paragraph 19‑20(1)(a)

Omit “ITAA 1997”, substitute “*ITAA 1997”.

34  Section 33‑1 (definition of connected with)

Omit “ITAA 1997”, substitute “*ITAA 1997”.

Division 2—Trading stock and revenue assets

Income Tax Assessment Act 1997

35  Subsection 28‑170(3) (table item 2, column 2)

Omit “trading stock”, substitute “*trading stock”.

36  Paragraph 28‑175(3)(b)

Omit “trading stock”, substitute “*trading stock”.

37  Subsection 70‑30(5)

Omit “*trading stock” (second occurring), substitute “trading stock”.

38  Paragraph 70‑35(1)(b)

Omit “*trading stock”, substitute “trading stock”.

39  Paragraphs 70‑100(6)(b) and (10)(b)

Omit “*trading stock”, substitute “trading stock”.

40  Subsection 165‑115BB(2) (paragraph (a) of the definition of previous capital losses, deductions or trading stock losses)

Omit “trading stock losses”, substitute “*trading stock losses”.

41  Subsections 165‑115F(3) and (4)

Omit “trading stock”, substitute “*trading stock”.

42  Subparagraph 385‑135(3)(b)(ii)

Omit “trading stock”, substitute “*trading stock”.

43  Subsection 715‑145(2) (table item 2, column headed “If:”)

Omit “*trading stock” (second occurring), substitute “trading stock”.

44  Paragraph 723‑50(2)(a)

Omit “trading stock” (first occurring), substitute “*trading stock”.

45  Paragraph 723‑50(2)(b)

Omit “revenue asset”, substitute “*revenue asset”.

46  Subsection 725‑225(5)

Omit “trading stock or revenue assets”, substitute “*trading stock or *revenue assets”.

47  Section 725‑245 (table item 1, column headed “Up interests”)

Omit “*revenue assets nor your *trading stock”, substitute “revenue assets nor your trading stock”.

48  Section 725‑245 (table item 2, column headed “Up interests”)

Omit “*trading stock or *revenue assets”, substitute “trading stock or revenue assets”.

49  Section 725‑245 (table item 3, column headed “Up interests”)

Omit “*revenue assets or your *trading stock”, substitute “revenue assets or your trading stock”.

50  Subsection 725‑310(2)

Omit “trading stock”, substitute “*trading stock”.

51  Section 725‑315

Omit “trading stock” (first occurring), substitute “*trading stock”.

52  Paragraph 725‑315(a)

Omit “*trading stock”, substitute “trading stock”.

53  Subsection 725‑335(2)

Omit “trading stock and revenue assets” (first occurring), substitute “*trading stock and *revenue assets”.

54  Subsection 725‑335(3) (table item 2, column headed “To:”)

Omit “*revenue assets or your *trading stock”, substitute “revenue assets or your trading stock”.

55  Subsection 725‑335(3) (table items 4 and 5, column headed “To:”)

Omit “*revenue assets nor your *trading stock”, substitute “revenue assets nor your trading stock”.

56  Subsection 725‑335(3) (table item 6, column headed “To:”)

Omit “*trading stock or *revenue assets”, substitute “trading stock or revenue assets”.

57  Paragraphs 977‑25(3)(b) and 977‑35(2)(b)

Omit “trading stock”, substitute “*trading stock”.

58  Subsection 995‑1(1) (paragraph (b) of the definition of apportionable deductions)

Omit “trading stock”, substitute “*trading stock”.

59  Subsection 995‑1(1) (paragraph (b) of the definition of consideration receivable)

Omit “trading stock”, substitute “*trading stock”.

Division 3—Other amendments

Income Tax Assessment Act 1997

60  Section 36‑25 (table relating to tax losses of companies, item 5)

Omit “*life insurance company”, substitute “life insurance company”.

61  Section 36‑25 (table relating to tax losses of corporate tax entities, item 1)

Omit “*corporate tax entity that has an amount of *excess franking offsets for an income year: it works out its *tax loss”, substitute “corporate tax entity that has an amount of excess franking offsets for an income year: it works out its tax loss”.

62  Section 36‑25 (table relating to tax losses of entities that become foreign hybrids, item 1)

Omit “*foreign hybrid”, substitute “foreign hybrid”.

63  Paragraph 70‑80(3)(a)

Omit “*business”, substitute “business”.

64  Subsection 115‑228(1) (definition of net financial benefit)

Omit “capital gain” (first occurring), substitute “*capital gain”.

65  Paragraph 124‑445(a)

Omit “member”, substitute “*member”.

66  Paragraph 216‑10(1)(b)

Omit “*securities lending arrangement”, substitute “securities lending arrangement”.

67  Section 216‑30

Omit “*securities lending arrangements”, substitute “securities lending arrangements”.


 

Part 7References to Acts

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

68  Paragraph 9‑20(1)(d)

Omit “Income Tax Assessment Act 1997”, substitute “*ITAA 1997”.

69  Subsection 113‑5(1)

Omit “Income Tax Assessment Act 1997”, substitute “*ITAA 1997”.

70  Paragraph 177‑12(4)(b)

Omit “Income Tax Assessment Act 1997”, substitute “*ITAA 1997”.

71  Section 195‑1 (definition of non‑cash benefit)

Omit “Income Tax Assessment Act 1997”, substitute “*ITAA 1997”.

72  Section 195‑1 (definition of withholding payment covered by a particular provision in Schedule 1 to the Taxation Administration Act 1953)

Omit “Income Tax Assessment Act 1997”, substitute “*ITAA 1997”.

73  Section 195‑1 (definition of withholding payment)

Omit “Income Tax Assessment Act 1997”, substitute “*ITAA 1997”.

Income Tax Assessment Act 1997

74  Subsection 995‑1(1) (definition of annual tax period election)

Omit “A New Tax System (Goods and Services Tax) Act 1999”, substitute “*GST Act”.

75  Subsection 995‑1(1) (definition of fund‑raising event)

Omit “A New Tax System (Goods and Services Tax) Act 1999”, substitute “*GST Act”.

76  Subsection 995‑1(1) (definition of precious metal)

Omit “A New Tax System (Goods and Services Tax) Act 1999”, substitute “*GST Act”.

77  Subsection 995‑1(1) (definition of pre‑school course)

Omit “A New Tax System (Goods and Services Tax) Act 1999”, substitute “*GST Act”.

78  Subsection 995‑1(1) (definition of primary course)

Omit “A New Tax System (Goods and Services Tax) Act 1999”, substitute “*GST Act”.

79  Subsection 995‑1(1) (definition of residential premises)

Omit “A New Tax System (Goods and Services Tax) Act 1999”, substitute “*GST Act”.

80  Subsection 995‑1(1) (definition of retirement village)

Omit “A New Tax System (Goods and Services Tax) Act 1999”, substitute “*GST Act”.

81  Subsection 995‑1(1) (definition of secondary course)

Omit “A New Tax System (Goods and Services Tax) Act 1999”, substitute “*GST Act”.

82  Subsection 995‑1(1) (definition of tertiary course)

Omit “A New Tax System (Goods and Services Tax) Act 1999”, substitute “*GST Act”.

83  Subsection 995‑1(1) (definition of untaxed Commonwealth entity)

Omit “A New Tax System (Goods and Services Tax) Act 1999”, substitute “*GST Act”.

Taxation Administration Act 1953

84  Section 426‑1 in Schedule 1

Omit “A New Tax System (Goods and Services Tax) Act 1999”, substitute “GST Act”.

85  Paragraph 426‑5(a) in Schedule 1

Omit “A New Tax System (Goods and Services Tax) Act 1999”, substitute “*GST Act”.

86  Paragraph 426‑5(b) in Schedule 1

Omit “A New Tax System (Goods and Services Tax) Act 1999”, substitute “GST Act”.

87  Subsection 426‑40(1) in Schedule 1 (paragraph (a) of note 1)

Omit “A New Tax System (Goods and Services Tax) Act 1999”, substitute “GST Act”.

88  Subsection 426‑55(1) in Schedule 1 (paragraph (a) of the note)

Omit “A New Tax System (Goods and Services Tax) Act 1999”, substitute “GST Act”.

89  Paragraph 426‑65(1)(a) in Schedule 1

Omit “A New Tax System (Goods and Services Tax) Act 1999”, substitute “*GST Act”.

90  Paragraph 426‑65(1)(b) in Schedule 1

Omit “A New Tax System (Goods and Services Tax) Act 1999”, substitute “GST Act”.

91  Subsection 446‑5(6) in Schedule 1 (table items 9 and 10, column headed “If the resolution affects the operation of …”)

Omit “A New Tax System (Goods and Services Tax) Act 1999”, substitute “*GST Act”.

92  Paragraph 850‑100(8)(a) in Schedule 1 (example)

Omit “A New Tax System (Goods and Services Tax) Act 1999”, substitute “GST Act”.

93  Paragraph 850‑100(8)(b) in Schedule 1 (example)

Omit “A New Tax System (Goods and Services Tax) Act 1999”, substitute “GST Act”.


 

Part 8Extensions of time

Income Tax Assessment Act 1997

94  Subsection 118‑195(1) (at the end of the cell at table item 1, column headed “And also one of these items”)

Add “, or within a longer period allowed by the Commissioner”.

95  Subsection 118‑200(3)

Repeal the subsection (not including the notes), substitute:

             (3)  However, you can adjust the formula by ignoring any non‑main residence days and total days in the period from the deceased’s death until your *ownership interest ended, if:

                     (a)  the deceased *acquired the ownership interest on or after 20 September 1985; and

                     (b)  your ownership interest ends within:

                              (i)  2 years of the deceased’s death; or

                             (ii)  a longer period allowed by the Commissioner; and

                     (c)  you get a more favourable result by doing so.

96  Application of amendments

The amendments made by this Part apply in relation to CGT events that happen in the 2008‑09 income year and later income years.


 

Part 9Cessation of membership of GST groups etc.

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

97  Subsection 48‑110(1)

Omit “*cease”, substitute “cease”.

98  Paragraph 48‑115(1)(b)

Omit “*cease”, substitute “cease”.

99  Paragraph 48‑115(2)(b)

Omit “*ceased”, substitute “ceased”.

100  Subsection 51‑110(1)

Omit “*cease”, substitute “cease”.

101  Paragraph 51‑115(1)(b)

Omit “*cease”, substitute “cease”.

102  Paragraph 51‑115(2)(b)

Omit “*ceased”, substitute “ceased”.

103  Section 195‑1 (definition of cease to be a member of a GST group)

Repeal the definition.

104  Section 195‑1 (definition of cease to be a participant of a GST joint venture)

Repeal the definition.

105  Application of amendments

The amendments made by this Part apply to tax periods starting on or after the commencement of this item.


 

Part 10Small business participation percentage

Division 1—Companies

Income Tax Assessment Act 1997

106  Before subsection 152‑70(2)

Insert:

Companies

107  Subsection 152‑70(2)

Omit “in”, substitute “of”.

108  At the end of section 152‑70

Add:

             (3)  Paragraph (a) of item 1 of the table does not apply if the entity holds the legal and equitable interests in the *shares jointly with another entity.

109  Application of amendments

The amendments made by this Division apply to CGT events that happen in the 2006‑07 income year or later income years.

Division 2—Discretionary trusts

Income Tax Assessment Act 1997

110  Subsection 152‑70(1) (paragraph (a) of the cell at table item 3, column headed “Is:”)

Omit “(the current year)”, substitute “(the relevant year)”.

111  Subsection 152‑70(1) (paragraph (b) of the cell at table item 3, column headed “Is:”)

Omit “current year”, substitute “relevant year”.

112  At the end of section 152‑70

Add:

Discretionary trusts

             (4)  Subsections (5) and (6) apply for the purpose of working out the *direct small business participation percentage in an entity in connection with a *CGT event that happened in an income year (the CGT event year), if:

                     (a)  the entity is a trust (where entities do not have entitlements to all the income and capital of the trust); and

                     (b)  during the relevant year mentioned in item 3 of the table in subsection (1) (disregarding subsection (5)), the trustee mentioned in that item:

                              (i)  does not make a distribution of income; and

                             (ii)  does not make a distribution of capital.

             (5)  Treat the references in that item to the relevant year as being references to:

                     (a)  if the trustee made a distribution of income or capital during the CGT event year—the CGT event year; or

                     (b)  otherwise—the last income year before the CGT event year in which the trustee did make a distribution of income or capital.

             (6)  Despite subsection (5), an entity holds a direct small business participation percentage of 0% in the trust at the relevant time if either:

                     (a)  the trust:

                              (i)  had a *net income for the relevant year; and

                             (ii)  did not have a *tax loss for the relevant year; or

                     (b)  the trustee did not make a distribution of income or capital at any time before the end of the CGT event year.

113  Paragraph 152‑105(c) (note)

Repeal the note.

114  Paragraph 152‑110(1)(c) (note)

Repeal the note.

115  Section 152‑120

Repeal the section.

116  Application of amendments

(1)       The amendments made by items 110 to 112 apply in relation to CGT events that happen in:

                     (a)  the 2006‑07 income year; and

                     (b)  later income years.

(2)       The amendments made by items 113 to 115 apply in relation to CGT events that happen on or after the commencement of this item.


 

Part 11Exempt income

Division 1—Repeal of spent provisions

Income Tax Assessment Act 1997

117  Section 11‑15 (table item headed “family assistance”)

Omit:

one‑off payment to families..............................................

52‑150

payments to families under the scheme determined under Schedule 3 to the Family Assistance Legislation Amendment (More Help for Families—One‑off Payments) Act 2004........................................




52‑150

118  Section 11‑15 (table item headed “social security or like payments”)

Omit:

2008 one‑off payment to older Australians under the Veterans’ Entitlements Act 1986.................................


52‑65

payments under the scheme determined under item 2 of Schedule 2 to the Social Security and Veterans’ Entitlements Legislation Amendment (One‑off Payments and Other Budget Measures) Act 2008...




52‑65

119  Paragraph 52‑10(1)(b)

Repeal the paragraph.

120  Subsections 52‑10(1B) and (1C)

Repeal the subsections.

121  Paragraphs 52‑65(1)(bb) and (c)

Repeal the paragraphs.

122  Subsections 52‑65(1B) and (1C)

Repeal the subsections.

123  Section 52‑75 (table item 1C)

Repeal the item.

124  Section 52‑75 (cell at table item 1, column headed “Payment made because of a person’s death”)

Repeal the cell, substitute:

Division 12A of Part IIIB

125  Section 52‑75 (cell at table item 3, column headed “Payment made because of a person’s death”)

Repeal the cell, substitute:

Division 12A of Part IIIB

126  Section 52‑75 (cell at table item 6, column headed “Payment made because of a person’s death”)

Repeal the cell, substitute:

Division 12A of Part IIIB

127  Section 52‑75 (cell at table item 7, column headed “Payment made because of a person’s death”)

Repeal the cell, substitute:

Division 12A of Part IIIB

128  Section 52‑75 (cell at table item 9, column headed “Payment made because of a person’s death”)

Repeal the cell, substitute:

Division 12A of Part IIIB

129  Subsection 52‑150(1)

Omit “(1)”.

130  Subsection 52‑150(1)

Omit “one‑off payment to families,”.

131  Subsection 52‑150(2)

Repeal the subsection.

Division 2—Lists of exempt income

Income Tax Assessment Act 1997

132  Subsection 6‑20(1) (note)

Omit “, 11‑10”.

133  Section 11‑1

Omit “3 main classes”, substitute “2 main classes”.

134  Paragraphs 11‑1(b) and (c)

Repeal the paragraphs, substitute:

                     (b)  ordinary or statutory income of a kind that is exempt (see table in section 11‑15).

135  Section 11‑10

Repeal the section.

136  Section 11‑15 (heading)

Repeal the heading, substitute:

11‑15  Ordinary or statutory income which is exempt

137  Section 11‑15 (after table item headed “defence”)

Insert:

dividends or shares

 

pooled development fund company dividend ...............

124ZM

pooled development fund company shares, income from sale of ....................................................................


124ZN

138  Section 11‑15 (table items headed “family assistance” and “foreign aspects of income taxation”)

Repeal the items, substitute:

family assistance

 

baby bonus............................................................................

52‑150

back to school bonus or single income family bonus....

52‑150

child care benefit .................................................................

52‑150

child care rebate....................................................................

52‑150

economic security strategy payment to families............

52‑150

families, payments to, under the scheme determined under Schedule 4 to the Social Security and Other Legislation Amendment (Economic Security Strategy) Act 2008.........................................................

52‑160

family tax benefit ................................................................

52‑150

Household Stimulus Package Act (No. 2) 2009, payments under scheme determined under Schedule 4 to the............................................................

52‑165

maternity immunisation allowance..................................

52‑150

financial arrangements

 

gains related to exempt income.........................................

230‑30

financial transactions

 

infrastructure borrowings, income in relation to ............

159GZZZZE

pooled development fund company dividends..............

124ZM

pooled development fund company shares, income from sale of ....................................................................


124ZN

foreign aspects of income taxation

 

approved overseas project, income from .......................

23AF

Australian‑American Education Foundation, grant from..................................................................................


51‑10

Commonwealth of Nations country officer, official salary and foreign income ...........................................


768‑100

consul and official staff member, official salary and foreign income ...............................................................


768‑100

Defence Force member, foreign resident, pay and
allowances of .................................................................


842‑105

Defence Force member, pay and allowances from being on eligible duty ....................................................


23AD

Defence Force member, pay and allowances from performing duties in operational areas ......................


23AC

defence of Australia, overseas person’s income from assisting in Australia’s defence....................................


842‑105

diplomat and official staff member, official salary and foreign income .......................................................


768‑100

educational, scientific, religious or philanthropic society, income of a visiting representative of .........


842‑105

expert, foreign resident, remuneration of ........................

842‑105

foreign society or association representative, income of ......................................................................................


842‑105

forex realisation gains, certain...........................................

775‑20

government representative and members of the entourage, foreign resident, income of ......................


842‑105

OBU investment trusts for overseas charitable institutions.......................................................................


121EL(2)

OBU off‑shore investment trusts, income to which subsection 121D(6) applies .........................................


121EL

overseas charitable institutions, income from OBUs.....

121ELA(1)

overseas employment income, resident, income of ......

23AG

persecution victim, payments to .......................................

768‑105

press representative, foreign, income of ..........................

842‑105

resistance fighter and victim of wartime persecution, payments to ...................................................................


768‑105

Territory resident company or trust, income from sources outside Australia .............................................


24F

Territory resident, income from sources in a prescribed Territory ..........................................................................


24G

United Nations, income from service with ......................

23AB

United States projects, income from approved overseas projects ...........................................................


23AA

139  Section 11‑15 (after table item headed “health”)

Insert:

interest

 

judgement debt, personal injury........................................

51‑57

140  Section 11‑15 (after table item headed “life‑insurance companies”)

Insert:

non‑cash benefits

 

business benefit.....................................................................

23L(2)

exempt fringe benefit...........................................................

23L(1A)

prizes

 

Prime Minister’s Literary Awards .....................................

51‑60

Prime Minister’s Prize for Australian History .................

51‑60

Prime Minister’s Prize for Science .....................................

51‑60

141  Section 11‑15 (table item headed “social security or like payments”)

Repeal the item, substitute:

social security or like payments

 

ABSTUDY scheme, payment under.................................

Subdivision 52‑E

Better Start for Children with Disability initiative, Outer Regional and Remote payment under ......................


52‑172

carer adjustment payment.................................................

53‑10

carers, 2005 one‑off payment to, (carer payment related), 2005 one‑off payment to carers (carer service pension related) or 2005 one‑off payment to carers (carer allowance related)..............................




52‑10

carers, 2006 one‑off payment to, (carer payment related), 2006 one‑off payment to carers (wife pension related), 2006 one‑off payment to carers (partner service pension related), 2006 one‑off payment to carers (carer service pension related) or 2006 one‑off payment to carers (carer allowance related) ............................................................................







52‑10

carers, 2007 one‑off payment to, (carer payment related), 2007 one‑off payment to carers (wife pension related), 2007 one‑off payment to carers (partner service pension related), 2007 one‑off payment to carers (carer service pension related) or 2007 one‑off payment to carers (carer allowance related).............................................................................







52‑10

carers, 2008 one‑off payment to, (carer payment related), 2008 one‑off payment to carers (wife pension related), 2008 one‑off payment to carers (partner service pension related), 2008 one‑off payment to carers (carer service pension related) or 2008 one‑off payment to carers (carer allowance related).............................................................................







52‑10

carers, one‑off payment to, (carer allowance related) or one‑off payment to carers (carer payment related) ............................................................................


52‑10

carers, payments to, under the scheme determined under Schedule 3 to the Family Assistance Legislation Amendment (More Help for Families—One‑off Payments) Act 2004........................................




52‑10

carer supplement..................................................................

52‑10

child disability assistance....................................................

Subdivision 52‑A

Commonwealth education or training payment............

Subdivision 52‑F

DFISA bonus and DFISA bonus bereavement payment...........................................................................

52‑65

disability services payment ................................................

53‑10

economic security strategy payment under the Social Security Act 1991...........................................................


52‑10

economic security strategy payment under the Veterans’ Entitlements Act 1986.................................


52‑65

education entry payment supplement under the Social Security Act 1991...........................................................


52‑10

exceptional circumstances relief, payment for ..............

53‑10 and 53‑15

farmers hardship bonus under the Social Security Act 1991..................................................................................


52‑10

farm help income support...................................................

53‑10 and 53‑15

Helping Children with Autism package, Outer Regional and Remote payment under .......................................


52‑170

Household Stimulus Package Act (No. 2) 2009, payments under the scheme determined under Schedule 4 to the............................................................



52‑165

matched savings scheme (income management) payment under the Social Security Act 1991...........


52‑10

older Australians, 2006 one‑off payment to, under the Social Security Act 1991..............................................


52‑10

older Australians, 2007 one‑off payment to, under the Social Security Act 1991..............................................


52‑10

older Australians, 2008 one‑off payment to, under the Social Security Act 1991..............................................


52‑10

pension bonus and pension bonus bereavement payment...........................................................................

52‑10 and 52‑65

persecution victim, payments to .......................................

768‑105

private health insurance......................................................

52‑125

resistance fighter and victim of wartime persecution, payments to ...................................................................


768‑105

Social Security and Other Legislation Amendment (Economic Security Strategy) Act 2008, payments under the scheme determined under Schedule 4 to the.....................................................................................




52‑160

Social Security and Veterans’ Affairs Legislation Amendment (One‑off Payments and Other 2007 Budget Measures) Act 2007, payments under a scheme determined under item 1 of Schedule 2 to the.....................................................................................





52‑10

Social Security and Veterans’ Affairs Legislation Amendment (One‑off Payments and Other 2007 Budget Measures) Act 2007, payments under the scheme determined under Schedule 4 to the.............




52‑10

Social Security and Veterans’ Entitlements Legislation Amendment (One‑off Payments and Other Budget Measures) Act 2008, payments under a scheme determined under item 1 of Schedule 2 to the............................................................




52‑10

Social Security and Veterans’ Entitlements Legislation Amendment (One‑off Payments and Other Budget Measures) Act 2008, payments under the scheme determined under Schedule 4 to the.....................................................................................




52‑10

Social Security and Veterans’ Entitlements Legislation Amendment (One‑off Payments to Increase Assistance for Older Australians and Carers and Other Measures) Act 2006, payments under the scheme determined under item 1 of Schedule 2 to the............................................................






52‑10

Social Security and Veterans’ Entitlements Legislation Amendment (One‑off Payments to Increase Assistance for Older Australians and Carers and Other Measures) Act 2006, payments under the scheme determined under Schedule 4 to the.....................................................................................





52‑10

Social Security Legislation Amendment (One‑off Payments for Carers) Act 2005, payments under the scheme determined under Schedule 2 to the......



52‑10

social security payments ....................................................

Subdivision 52‑A

training and learning bonus under the Social Security Act 1991...........................................................................


52‑10

travelling expenses for Australian participants in British nuclear tests .......................................................


Subdivision 52‑CB

veteran, Australian and United Kingdom, payment to

53‑20

veteran, payment to ............................................................

Subdivisions 52‑B and 52‑C

Veterans’ Entitlements Act 1986, lump sum payment under section 198N of the............................................


52‑65

voluntary income management incentive payment under the Social Security Act 1991............................


52‑10

wounds and disability pension ..........................................

53‑10

see also welfare

 

142  Section 11‑15 (table item headed “superannuation and related business”)

After:

approved deposit fund, non‑reversionary bonuses on policies of life assurance ..............................................

295‑335 (table item 1)

insert:

benefits from non‑complying funds ................................

305‑5

Division 3—Australian Victim of Terrorism Overseas Payment

Income Tax Assessment Act 1997

143  Section 11‑15 (table item headed “social security or like payments”)

After:

ABSTUDY scheme, payment under.................................

Subdivision 52‑E

insert:

Australian Victim of Terrorism Overseas Payment........

52‑10

Division 4—Amendments contingent on the Clean Energy (Household Assistance Amendments) Act 2011

Clean Energy (Household Assistance Amendments) Act 2011

144  Item 16 of Schedule 10 (heading)

Omit “Subsection 52‑150(1)”, substitute “Section 52‑150”.

145  Item 2 of Schedule 10

Repeal the item, substitute:

1A  Section 11‑15 (table item headed “family assistance”)

After:

child care rebate....................................................................

52‑150

insert:

clean energy advance............................................................

52‑150

2  Section 11‑15 (at the end of the table item headed “family assistance”)

Add:

single income family supplement........................................

52‑150

Income Tax Assessment Act 1997

146  Section 11‑15 (table item headed “family assistance”)

After:

child care rebate....................................................................

52‑150

insert:

clean energy advance............................................................

52‑150

147  Section 11‑15 (at the end of the table item headed “family assistance”)

Add:

single income family supplement........................................

52‑150

148  Section 11‑15 (table item headed “social security or like payments”)

After:

child disability assistance......................................................

Subdivision 52‑A

insert:

clean energy advance under the Farm Household Support Act 1992.............................................................


53‑10

clean energy payment under the Social Security Act 1991....................................................................................


52‑10

clean energy payment under the Veterans’ Entitlements Act 1986.............................................................................


52‑65

clean energy payment under the Military Rehabilitation and Compensation Act 2004..............


52‑114


 

Part 12Complying superannuation/FHSA life insurance policies

Division 1—Virtual PST life insurance policies

Income Tax (Transitional Provisions) Act 1997

149  At the end of Subdivision 320‑F

Add:

320‑180  Deferred annuities purchased before 1 July 2007

             (1)  Subsection (3) applies for the purposes of subparagraph (b)(i) of the definition of virtual PST life insurance policy in subsection 995‑1(1) of the Income Tax Assessment Act 1997, as in force just after the commencement of item 259 of Schedule 1 to the Superannuation Legislation Amendment (Simplification) Act 2007.

             (3)  Treat an annuity as having been purchased out of a superannuation lump sum or an employment termination payment, if the annuity was purchased:

                     (a)  before 1 July 2007; and

                     (b)  out of an eligible termination payment (within the meaning of the Income Tax Assessment Act 1997, as in force just before the commencement mentioned in subsection (1) of this section).

150  Application of amendment

The amendment made by this Division applies to the 2007‑08 income year and later income years.

Division 2—Complying superannuation/FHSA life insurance policies

Income Tax (Transitional Provisions) Act 1997

151  After subsection 320‑180(1)

Insert:

             (2)  Subsection (3) also applies for the purposes of subparagraph (b)(i) of the definition of complying superannuation/FHSA life insurance policy in subsection 995‑1(1) of the Income Tax Assessment Act 1997, as in force just after the commencement of item 47 of Schedule 7 to the First Home Saver Accounts (Consequential Amendments) Act 2008.

152  Application of amendment

The amendment made by this Division applies from 26 June 2008.


 

Part 13Applications for tax file numbers

Income Tax Assessment Act 1936

153  Section 202A (definition of approved form)

Repeal the definition.

154  Subsection 202B(2)

Repeal the subsection, substitute:

             (2)  An application must be in the approved form. The approved form may require the application to include documentary evidence of the applicant’s identity.

155  Application of amendments

The amendments made by this Part apply to applications made on or after the commencement of this item.

156  Saving provision—approved forms

A form that, just before the commencement of this item:

                     (a)  had been approved by the Commissioner for the purposes of subsection 202B(2) of the Income Tax Assessment Act 1936; and

                     (b)  was in force;

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


 

Part 14Taxable professional income

Income Tax Assessment Act 1997

157  Section 405‑45 (formula in step 2 of the method statement)

Repeal the formula, substitute:

158  Application of amendment

The amendment made by this Part applies for the purposes of assessments for the 1998‑99 income year and later income years.


 

Part 15Consolidated groups

Division 1—Partnerships

Income Tax Assessment Act 1997

159  Section 713‑265 (heading)

Repeal the heading, substitute:

713‑265  Partnership leaves group—adjustments to allocable cost amount of partner who also leaves group

Division 2—Amendments applying from 1 July 2002

Income Tax Assessment Act 1997

160  Subsection 715‑90(2)

Omit “has effect as if it”, substitute “and paragraph 165‑115BA(5)(c) have effect as if they”.

161  Application of amendment

The amendment made by this Division applies on and after 1 July 2002.


 

Part 16Demutualisation

Income Tax Assessment Act 1997

162  Subsection 316‑155(2)

Omit “the scheme approved by a court for the demutualisation provides for a trust (the lost policy holders trust) to exist”, substitute “, under the demutualisation, a trust (the lost policy holders trust) exists”.

163  Application of amendment

The amendment made by this Part applies in relation to demutualisations occurring on or after 1 July 2008.


 

Part 17Mining and quarrying definitions

Income Tax Assessment Act 1997

164  Subparagraph 40‑80(1)(c)(i)

Omit “*mining operations”, substitute “mining operations”.

165  Paragraph 40‑95(11)(b)

Omit “petroleum field”, substitute “*petroleum field”.

166  Subsection 40‑110(3B)

Omit “petroleum field”, substitute “*petroleum field”.

167  Paragraph 40‑740(1)(d)

Omit “petroleum”, substitute “*petroleum”.

168  Paragraphs 124‑710(1)(a) and 855‑20(b)

Omit “minerals”, substitute “*minerals”.

169  Section 995‑1 (definition of exploration or prospecting)

Repeal the definition, substitute:

exploration or prospecting has a meaning affected by subsection 40‑730(4).

170  Subsection 995‑1(1) (paragraph (b) of the definition of housing and welfare)

Repeal the paragraph, substitute:

                     (b)  health, education, recreation or similar facilities, or facilities for meals; or

Note:       This item fixes a misspelling.

171  Section 995‑1 (definition of minerals)

Repeal the definition, substitute:

minerals has a meaning affected by subsection 40‑730(5).

172  Subsection 995‑1(1) (definition of mining operations)

Omit “section 40‑730”, substitute “subsection 40‑730(7)”.

173  Subsection 995‑1(1) (definition of mining, quarrying or prospecting information)

Omit “section 40‑730”, substitute “subsection 40‑730(8)”.

174  Subsection 995‑1(1) (paragraph (a) of the definition of mining, quarrying or prospecting right)

Omit “minerals”, substitute “*minerals”.

175  Subsection 995‑1(1) (definition of natural resource)

Omit “minerals”, substitute “*minerals”.

176  Subsection 995‑1(1) (definition of petroleum)

Omit “section 40‑730”, substitute “subsection 40‑730(6)”.


 

Part 18BAS amount

Income Tax Assessment Act 1997

177  Subsection 995‑1(1)

Insert:

BAS amount means any debt or credit that arises directly under the *BAS provisions.

Note:          BAS stands for Business Activity Statement.

178  Subsection 995‑1(1) (definition of BAS amounts)

Repeal the definition.


 

Part 19Corporate tax rate

Income Tax Assessment Act 1997

179  Subsection 705‑115(1) (formula)

Repeal the formula, substitute:

180  Subsection 711‑35(1)

Omit “*general company tax rate”, substitute “*corporate tax rate”.

181  Subsection 711‑45(3) (formula)

Repeal the formula, substitute:

Taxation Administration Act 1953

182  Subsection 288‑80(3) in Schedule 1 (formula)

Repeal the formula, substitute:


 

Part 20UK wounds and disability pension

Income Tax Assessment Act 1997

183  Section 53‑10 (paragraph (a) of the cell at table item 5, column headed “... is exempt subject to these exceptions and special conditions:”)

Omit “subsection 315(2) of the Income and Corporation Taxes Act 1988 of the United Kingdom”, substitute “section 641 of the Income Tax (Earnings and Pensions) Act 2003 of the United Kingdom”.


 

Part 21Repeal of redundant provisions

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

184  Section 195‑1 (definition of electronic signature)

Repeal the definition.

Income Tax Rates Act 1986

185  Section 22

Repeal the section.

Taxation Administration Act 1953

186  Paragraph 45‑910(3)(c) in Schedule 1

Repeal the paragraph.

187  Subsection 45‑910(3) in Schedule 1 (note)

Omit “(c),”.


 

Part 22Limited amendment period

Income Tax Assessment Act 1936

188  After section 170

Insert:

170A  Amendment of assessments—interaction with other Acts

Scope

             (1)  This section applies if a law other than section 170 or this section provides that section 170 does not prohibit the amendment of an assessment if the amendment is made:

                     (a)  for a particular purpose; and

                     (b)  within a particular period (the later amendment period).

Extensions—applications by taxpayer

             (2)  Section 170 does not prevent the Commissioner amending the assessment even though the later amendment period has ended if the taxpayer applies:

                     (a)  before the end of the later amendment period; and

                     (b)  in the approved form mentioned in subsection 170(5);

for an amendment for the purpose mentioned in paragraph (1)(a) of this section. The Commissioner may amend the assessment to give effect to the decision on the application.

Extensions—giving effect to private rulings

             (3)  The Commissioner may amend an assessment even though the later amendment period has ended if:

                     (a)  the taxpayer applies for a private ruling under Division 359 in Schedule 1 to the Taxation Administration Act 1953:

                              (i)  before the end of the later amendment period; and

                             (ii)  for the purpose mentioned in paragraph (1)(a); and

                     (b)  the Commissioner makes a private ruling under that Division because of the application.

The Commissioner may amend the assessment to give effect to the ruling.

Extensions—Federal Court orders or taxpayer consent

             (4)  If:

                     (a)  the Commissioner has started to examine the affairs of a taxpayer in relation to an assessment for the purpose mentioned in paragraph (1)(a); and

                     (b)  the Commissioner has not completed the examination before the end of the later amendment period or that period as extended;

the later amendment period may be extended as follows:

 

Extensions of later amendment period

 

In this case:

The position is:

1

The Commissioner, before the end of the later amendment period or that period as extended, applies to the Federal Court of Australia for an order extending the later amendment period

The Court may order an extension of the later amendment period for a specified period if it is satisfied that it was not reasonably practicable, or it was inappropriate, for the Commissioner to complete the examination within the later amendment period, or that period as extended, because of:

(a) any action taken by the taxpayer; or

(b) any failure of the taxpayer to take action that would have been reasonable for the taxpayer to take.

2

The Commissioner, before the end of the later amendment period or that period as extended, requests the taxpayer to consent to extending the later amendment period

The taxpayer may, by notice in writing, consent to extending the later amendment period for a specified period.

             (5)  The later amendment period for an assessment may be extended more than once under subsection (4).

189  Application of amendment

The amendment made by this Part applies in relation to laws that:

                     (a)  provide that section 170 of the Income Tax Assessment Act 1936 does not prohibit the amendment of an assessment as mentioned in subsection 170A(1) of that Act (as inserted by this Part); and

                     (b)  commence no earlier than 2 years before the commencement of this item.


 

Part 23Definition of managed investment trust

Tax Laws Amendment (2010 Measures No. 3) Act 2010

190  After subitem 7(1) of Schedule 5

Insert:

(1A)     Without limiting subitem (1), this item also applies for the purposes of Division 275 of the Income Tax Assessment Act 1997 (Australian managed investment trusts) if:

                     (a)  apart from this item, a trust is not a managed investment trust in relation to an income year; and

                     (b)  the income year is the 2008‑09 or 2009‑10 income year.


 

Part 24Equivalent foreign collective investment vehicles

Taxation Administration Act 1953

191  Paragraph 12‑402(3)(e) in Schedule 1

Repeal the paragraph, substitute:

                     (e)  an entity:

                              (i)  that is recognised under a *foreign law as being used for collective investment by pooling the contributions of its members as consideration to acquire rights to benefits produced by the entity; and

                             (ii)  that has at least 50 members; and

                            (iii)  the contributing members of which do not have day‑to‑day control over the entity’s operation;

192  Application of amendment

Item 6 of Schedule 5 to the Tax Laws Amendment (2010 Measures No. 3) Act 2010 applies in relation to the amendment made by this Part in the same way as that item applies in relation to the amendments made by that Schedule.


 

Part 25Self managed superannuation funds

Division 1—Definition of self managed superannuation fund

Superannuation Industry (Supervision) Act 1993

193  Subsection 10(1) (definition of self managed superannuation fund)

Omit “section 17A”, substitute “sections 17A and 17B”.

194  Section 17A (heading)

Repeal the heading, substitute:

17A  Definition of self managed superannuation fund

195  At the end of subsection 17A(1)

Add:

Note:          Section 17B contains exceptions to paragraphs (1)(f) and (g).

196  At the end of subsection 17A(2)

Add:

Note:          Section 17B contains exceptions to paragraphs (2)(c) and (d).

197  Paragraph 17A(3)(c)

Repeal the paragraph, substitute:

                     (c)  if a member of the fund is under a legal disability because of age and does not have a legal personal representative:

                              (i)  the parent or guardian of the member is a trustee of the fund in place of the member; or

                             (ii)  if the trustee of the fund is a body corporate—the parent or guardian of the member is a director of the body corporate in place of the member; or

198  After section 17A

Insert:

17B  Definition of self managed superannuation fund—remuneration of trustees etc.

             (1)  Paragraphs 17A(1)(f) and (2)(c) do not apply to remuneration for any duties or services performed by a trustee of a fund, if:

                     (a)  the trustee performs the duties or services other than in the capacity of trustee; and

                     (b)  the trustee is appropriately qualified, and holds all necessary licences, to perform the duties or services; and

                     (c)  the trustee performs the duties or services in the ordinary course of a business, carried on by the trustee, of performing similar duties or services for the public; and

                     (d)  the remuneration is no more favourable to the trustee than that which it is reasonable to expect would apply if the trustee were dealing with the relevant other party at arm’s length in the same circumstances.

             (2)  Paragraphs 17A(1)(g) and (2)(d) do not apply to remuneration for any duties or services performed by a director of a body corporate that is a trustee of a fund, if:

                     (a)  the director performs the duties or services other than:

                              (i)  in the capacity of director; and

                             (ii)  in connection with the body corporate’s capacity of trustee; and

                     (b)  the director is appropriately qualified, and holds all necessary licences, to perform the duties or services; and

                     (c)  the director performs the duties or services in the ordinary course of a business, carried on by the director, of performing similar duties or services for the public; and

                     (d)  the remuneration is no more favourable to the director than that which it is reasonable to expect would apply if the director were dealing with the relevant other party at arm’s length in the same circumstances.

199  Application of amendments

(1)       Item 197 applies from 8 October 1999.

(2)       Subsection 17B(1) of the Superannuation Industry (Supervision) Act 1993, inserted by this Division, applies from 8 October 1999.

(3)       Subsection 17B(2) of the Superannuation Industry (Supervision) Act 1993, inserted by this Division, applies to the 2007‑2008 income year and later income years.

Division 2—References to self managed superannuation funds

Income Tax Assessment Act 1997

200  Subparagraph 210‑70(1)(b)(i)

Omit “self managed superannuation fund (within the meaning of the Superannuation Industry (Supervision) Act 1993)”, substitute “*self managed superannuation fund”.

201  Subparagraph 210‑70(1)(b)(ii)

Omit “self managed superannuation fund (within the meaning of the Superannuation Industry (Supervision) Act 1993)”, substitute “self managed superannuation fund”.

202  Paragraph 210‑170(2)(a)

Omit “self managed superannuation fund (within the meaning of the Superannuation Industry (Supervision) Act 1993)”, substitute “*self managed superannuation fund”.

203  Paragraph 210‑170(2)(b)

Omit “self managed superannuation fund (within the meaning of the Superannuation Industry (Supervision) Act 1993)”, substitute “self managed superannuation fund”.

Superannuation Industry (Supervision) Act 1993

204  Subsection 6(1) (note)

Omit “self‑managed superannuation funds”, substitute “self managed superannuation funds”.

205  Subsection 17A(6) (notes 1 and 2)

Omit “self‑managed superannuation fund”, substitute “self managed superannuation fund”.

206  Subsection 29N(1A)

Omit “self‑managed superannuation fund”, substitute “self managed superannuation fund”.

207  Section 35B (heading)

Repeal the heading, substitute:

35B  Accounts and statements (self managed superannuation funds only)

208  Section 35D (heading)

Repeal the heading, substitute:

35D  Trustee to lodge annual returns (self managed superannuation funds only)

209  Subparagraph 229(1)(aa)(i)

Omit “self‑managed superannuation fund”, substitute “self managed superannuation fund”.

210  Subsections 229(3) and 231(3)

Omit “self‑managed superannuation fund”, substitute “self managed superannuation fund”.

211  Paragraph 327 (paragraph (aa) of the definition of modifiable provision)

Omit “self‑managed superannuation funds”, substitute “self managed superannuation funds”.

Taxation Administration Act 1953

212  Subsection 355‑65(3) in Schedule 1 (paragraph (a) of the cell at table item 8, column headed “and the record or disclosure …”)

Omit “self‑managed superannuation fund”, substitute “*self managed superannuation fund”.

213  Subsection 355‑65(3) in Schedule 1 (paragraphs (b) and (c) of the cell at table item 8, column headed “and the record or disclosure …”)

Omit “self‑managed superannuation fund”, substitute “self managed superannuation fund”.


 

Part 26Untaxed plan cap

Income Tax Assessment Act 1997

214  Subsection 307‑350(2)

Repeal the subsection, substitute:

Reductions and increases

          (1A)  Subsection (2) applies if:

                     (a)  you receive one or more *superannuation member benefits from a *superannuation plan at a time; and

                     (b)  the benefit, or one or more of the benefits:

                              (i)  is a *superannuation lump sum; and

                             (ii)  includes an *element untaxed in the fund.

             (2)  Reduce your untaxed plan cap amount just after that time:

                     (a)  if the total of the *elements untaxed in the fund of the *superannuation member benefits to which paragraph (1A)(b) applies falls short of your untaxed plan cap amount at that time—by that total; or

                     (b)  otherwise—to nil.

215  Subsection 307‑350(2A)

Omit “subsection (2)”, substitute “subsections (1A) and (2)”.

216  Application of amendments

The amendments made by this Part apply on and after 1 July 2007.


 

Part 27Correction of typographical errors

Income Tax Assessment Act 1997

217  Subparagraph 775‑205(c)(i)

Omit “set‑off”, substitute “set off”.

Taxation Administration Act 1953

218  Paragraph 16‑153(2)(c) in Schedule 1

Omit “*reportable fringe benefit amount”, substitute “*reportable fringe benefits amount”.


 

Part 28Foreign income tax offset, Medicare levy and surcharge

Income Tax Assessment Act 1936

219  Subsection 6(1)

Insert:

Medicare levy means Medicare levy imposed as such by any Act as assessed under this Act.

220  Subsection 6(1)

Insert:

Medicare levy (fringe benefits) surcharge has the meaning given by the Income Tax Assessment Act 1997.

221  Subsections 251R(1) and (1A)

Repeal the subsections.

222  Subsections 251R(2), (2A) and (6A)

Omit “levy”, substitute “Medicare levy”.

223  Paragraphs 251R(6B)(c), (6C)(d) and (6D)(d) and (f)

Omit “levy”, substitute “Medicare levy”.

224  Subsection 251R(7)

Omit “levy payable in accordance with this Part and surcharge”, substitute “Medicare levy payable in accordance with this Part and Medicare levy (fringe benefits) surcharge”.

225  Subsection 251S(1) (note)

Repeal the note, substitute:

Note 1:       Subdivision 61‑L (tax offset for Medicare levy surcharge (lump sum payments in arrears)) of the Income Tax Assessment Act 1997 might provide a tax offset for a person if Medicare levy surcharge (within the meaning of that Act) is payable by the person.

Note 2:       The tax offset for foreign income tax under Division 770 of the Income Tax Assessment Act 1997 can be applied against your liability to pay Medicare levy or Medicare levy (fringe benefits) surcharge: see item 22 of the table in subsection 63‑10(1) of that Act.

226  Section 251T (heading)

Repeal the heading, substitute:

251T  Medicare levy (other than Medicare levy surcharge) not payable by prescribed persons or by certain trustees

227  Subsections 251U(1) to (3)

Omit “levy” (wherever occurring), substitute “Medicare levy”.

228  Section 251V (heading)

Repeal the heading, substitute:

251V  Subsections 251R(4), (5), (6B), (6C) and (6D) not to apply to Medicare levy surcharge

229  Subsection 251V(2)

Omit “the levy”, substitute “the Medicare levy”.

230  Section 251VA (heading)

Repeal the heading, substitute:

251VA  Subsection 251U(3) not to apply for Medicare levy surcharge

231  Subsection 251VA(2)

Omit “the levy”, substitute “the Medicare levy”.

232  Subsection 251W(1)

Omit “levy or surcharge”, substitute “Medicare levy or Medicare levy (fringe benefits) surcharge”.

233  Section 251X

Omit “levy or surcharge”, substitute “Medicare levy or Medicare levy (fringe benefits) surcharge”.

234  Section 251Z (heading)

Repeal the heading, substitute:

251Z  Administration of Medicare levy (fringe benefits) surcharge Act

Income Tax Assessment Act 1997

235  Subsection 63‑10(1) (cell at table item 22, column headed “What happens to any excess”)

Repeal the cell, substitute:

Apply it against your liability (if any) to pay *Medicare levy for the income year.

To the extent that an amount of it remains, apply it against your liability (if any) to pay *Medicare levy (fringe benefits) surcharge for the income year.

To the extent that an amount of it remains, you cannot get a refund of it, you cannot transfer it and you cannot carry it forward to a later income year

236  At the end of section 770‑5

Add:

Note 1:       This Division applies in relation to Medicare levy and Medicare levy (fringe benefits) surcharge in the same way as it applies to Australian income tax. See section 90‑1 in Schedule 1 to the Taxation Administration Act 1953.

Note 2:       The tax offset under this Division can be applied against your Medicare levy and Medicare levy (fringe benefits) surcharge liability for the year, if an amount of it remains after you apply it against your basic income tax liability. See item 22 of the table in subsection 63‑10(1).

237  Subsection 995‑1(1) (paragraph (b) of the definition of income tax law)

Omit “Medicare levy”, substitute “*Medicare levy”.

238  Subsection 995‑1(1)

Insert:

Medicare levy has the meaning given by the Income Tax Assessment Act 1936.

239  Subsection 995‑1(1)

Insert:

Medicare levy (fringe benefits) surcharge means Medicare levy surcharge imposed by the A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999.

240  Subsection 995‑1(1) (definition of Medicare levy surcharge)

Repeal the definition, substitute:

Medicare levy surcharge means:

                     (a)  an amount (other than a nil amount) of *Medicare levy that is payable by you only because of section 8B, 8C, 8D, 8E, 8F or 8G of the Medicare Levy Act 1986; or

                     (b)  *Medicare levy (fringe benefits) surcharge.

Taxation Administration Act 1953

241  Paragraphs 11‑1(b), 15‑30(b) and 45‑5(1)(b) in Schedule 1

Omit “Medicare levy”, substitute “*Medicare levy”.

242  Section 45‑340 in Schedule 1 (method statement, step 2)

Omit “Medicare levy” (first occurring), substitute “*Medicare levy”.

243  Section 45‑375 in Schedule 1 (method statement, step 2)

Omit “Medicare levy” (first occurring), substitute “*Medicare levy”.

244  Paragraphs 90‑1(a) and (b) in Schedule 1

Repeal the paragraphs, substitute:

                     (a)  *Medicare levy;

                     (b)  *Medicare levy (fringe benefits) surcharge.

245  Paragraphs 340‑10(1)(c) and (d) in Schedule 1

Repeal the paragraphs, substitute:

                     (c)  *Medicare levy;

                     (d)  *Medicare levy (fringe benefits) surcharge;

246  Paragraph 357‑55(b) in Schedule 1

Omit “Medicare levy”, substitute “*Medicare levy”.

Taxation (Interest on Overpayments and Early Payments) Act 1983

247  Subsection 3(1) (paragraph (b) of the definition of income tax)

Omit “levy”, substitute “Medicare Levy”.

248  Application of amendments

The amendments made by this Part apply to income years starting on or after 1 July 2008.


 

Part 29Adjusted tax

Taxation Administration Act 1953

249  Section 45‑340 in Schedule 1 (method statement, step 4)

Omit “, and reduced by what would have been your *FTB amount (if any) for the *base year if your taxable income for the base year had been your *adjusted taxable income, or your *adjusted withholding income, for that year”.

250  Section 45‑375 in Schedule 1 (method statement, step 4)

Omit “, and reduced by what would have been your *FTB amount (if any) for the variation year if your taxable income for that year had been your *adjusted assessed taxable income for that year”.

251  Application of amendments

The amendments made by this Part apply to a base year that is:

                     (a)  the 2009‑10 income year; or

                     (b)  a later income year.


 

Part 30Section 109CA of the Income Tax Assessment Act 1936

Income Tax Assessment Act 1936

252  Subparagraph 109CA(7)(d)(i)

Repeal the subparagraph, substitute:

                              (i)  starting on the start of 1 July 2009; and

253  Application of amendment

The amendment made by this Part applies in relation to payments made on or after 1 July 2009.


 

Part 31Franking debits

Income Tax Assessment Act 1936

254  Paragraph 45C(3)(b)

Repeal the paragraph, substitute:

                     (b)  the amount of the franking debit is the amount that, if the company had:

                              (i)  paid a dividend of an amount equal to the amount of the capital benefit, or the part of the capital benefit, at the time when it was provided; and

                             (ii)  fully franked the dividend;

                            would have been the amount of the franking credit of the company that would have arisen as a result of the dividend.

255  Application of amendment

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

 

 

 

[Minister’s second reading speech made in—

House of Representatives on 23 November 2011

Senate on 27 February 2012]

(257/11)