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Income Tax Assessment Act 1997

Authoritative Version
  • - C2012C00272
  • In force - Superseded Version
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Act No. 38 of 1997 as amended, taking into account amendments up to Clean Energy (Tax Laws Amendments) Act 2011
An Act about income tax and related matters
Administered by: Treasury
General Comments: This compilation is affected by retrospective amendments. Please see the Tax Laws Amendment (2011 Measures No. 9) Act 2012 (Act No. 12, 2012), the Superannuation Laws Amendment (Capital Gains Tax Relief and Other Efficiency Measures) Act 2012 (Act No. 158, 2012) and the Tax and Superannuation Laws Amendment (2013 Measures No. 2) Act 2013 (Act No. 85, 2013) for details.
Registered 02 Mar 2012
Start Date 01 Jan 2012
End Date 20 Mar 2012

Income Tax Assessment Act 1997

Act No. 38 of 1997 as amended

This compilation was prepared on 20 February 2012
taking into account amendments up to Act No. 159 of 2011

Volume 11 includes:   Notes 2 – 19
                                    Table A

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

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

  

  

  


Notes to the Income Tax Assessment Act 1997

Note 2

Subsection 995‑1(1)—Schedule 13 (item 34) of the New Business Tax System (Consolidation, Value Shifting, Demergers and Other Measures) Act 2002 (No. 90, 2002) provides as follows:

Schedule 13

34  Subsection 995‑1(1) (definition of surplus)

Repeal the definition, substitute:

surplus:

                            (a)   section 205‑40 sets out when a *franking account is in surplus; and

                            (b)   section 208‑125 sets out when an *exempting account is in surplus.

The proposed amendment was misdescribed and is not incorporated in this compilation.

Note 3

Subsection 995‑1(1)—Schedule 27 (item 13) of the New Business Tax System (Consolidation and Other Measures) Act 2003 (No. 16, 2003) provides as follows:

Schedule 27

13  Subsection 995‑1(1) (definition of surplus)

Repeal the definition, substitute:

surplus:

                     (a)  section 205‑40 sets out when a *franking account is in surplus; and

                     (b)  section 208‑125 sets out when an *exempting account is in surplus; and

                     (c)  section 210‑130 sets out when a *venture capital sub‑account is in surplus.

The proposed amendment was misdescribed and is not incorporated in this compilation.

Note 4

Paragraph 30‑37(a)—Schedule 11 (item 3) of the Tax Laws Amendment (2006 Measures No. 3) Act 2006 (No. 80, 2006) provides as follows:

Schedule 11

3  Paragraph 30‑37(a)

Omit “1948”, substitute “2006”.

Subsection 2(1) (item 10) of the Tax Laws Amendment (2006 Measures No. 3) Act 2006 provides as follows:

Provision(s)

Commencement

Date/Details

10.  Schedule 11, item 3

The later of:

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

(b) immediately after the commencement of item 42 of Schedule 1 to the Australian Citizenship (Transitionals and Consequentials) Act 2006.

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

 

The Australian Citizenship (Transitionals and Consequentials) Act 2006 was incorrectly cited and the amendment is not incorporated in this compilation.

Note 5

Tax Laws Amendment (2008 Measures No. 2) Act 2008 (No. 38, 2008)

The following amendments commence on 1 July 2012:

Schedule 8

12  Subsections 40‑1005(1), (2), (3) and (4)

Repeal the subsections, substitute:

             (1)  You can deduct an amount for an income year if:

                     (a)  you or another entity incurred capital expenditure that is covered under section 40‑1010 in relation to particular trees; and

                     (b)  you satisfy a condition in subsection (5) for the trees for at least part of the income year; and

                     (c)  you are carrying on a *business in the income year; and

                     (d)  you use the land occupied by the trees for the primary and principal purpose of *carbon sequestration by the trees (see section 40‑1015); and

                     (e)  your purposes in using the land occupied by the trees do not include any of the following:

                              (i)  felling the trees;

                             (ii)  using the trees for *commercial horticulture; and

                      (f)  you do not use the land in connection with:

                              (i)  a *managed investment scheme; or

                             (ii)  a *forestry managed investment scheme.

             (2)  The amount of the deduction is worked out under this formula:

where:

establishment expenditure is the amount of expenditure mentioned in subsection (1).

write‑off days in income year is the number of days in the income year:

                     (a)  that occur within the period:

                              (i)  starting on the first day of the income year in which the trees are established; and

                             (ii)  ending 14 years and 105 days after that day; and

                     (b)  on which you use the land occupied by the trees for the primary and principal purpose of *carbon sequestration by the trees; and

                     (c)  on which you satisfy a condition in subsection (5) for the trees.

write‑off rate is 7%.

             (3)  You cannot deduct more in total than the amount of capital expenditure incurred for establishing the trees up to the time at which they are established.

13  Paragraph 40‑1010(1)(b)

After “you incur”, insert “or another entity incurs”.

14  Paragraph 40‑1010(1)(c)

Omit “you are”, substitute “the entity incurring the expenditure (the establishing entity) is”.

15  Paragraph 40‑1010(1)(d)

Omit “your”, substitute “the establishing entity’s”.

16  Paragraph 40‑1010(1)(e)

Omit “your”, substitute “the establishing entity’s”.

17  Paragraph 40‑1010(1)(f)

Omit “you do”, substitute “the establishing entity does”.

18  Paragraph 40‑1010(1)(h)

Omit “you give”, substitute “the establishing entity gives”.

19  Paragraph 40‑1010(4)(a)

Repeal the paragraph, substitute:

                     (a)  if the establishing entity lodges its *income tax return for the income year within 5 months after the end of the income year—the day the establishing entity lodges that income tax return; or

20  At the end of Subdivision 40‑J

Add:

40‑1030  Extra deduction for destruction of trees in carbon sink forest

             (1)  You can deduct the amount worked out under subsection (2) for an income year if:

                     (a)  you or another entity incurred capital expenditure that is covered under section 40‑1010 in relation to particular trees; and

                     (b)  you use the land occupied by the trees for the primary and principal purpose of *carbon sequestration by the trees; and

                     (c)  the trees are destroyed during the income year; and

                     (d)  you satisfy a condition in subsection 40‑1005(5) for the trees just before they are destroyed.

             (2)  Work out the amount of the deduction as follows:

Method statement

Step 1.   Work out the total of the amounts you could have deducted under this Subdivision in relation to the trees for the period:

                   (a)     starting on the first day of the income year in which the trees are established; and

                   (b)     ending when the trees were destroyed;

              assuming that, during that period, you satisfied a condition in the table in subsection 40‑1005(5).

Step 2.   Subtract from the expenditure that is covered under section 40‑1010 in relation to the trees:

                   (a)     the result from step 1; and

                   (b)     any amount you received (under an insurance policy or otherwise) for the destruction.

              The remaining amount (if positive) is your deduction under subsection (1).

             (3)  This deduction is in addition to any deduction for the income year under section 40‑1005.

40‑1035  Getting information if you acquire a carbon sink forest

             (1)  This section applies if:

                     (a)  you or another entity incurred capital expenditure; and

                     (b)  the expenditure is covered under section 40‑1010 in relation to particular trees; and

                     (c)  you begin to satisfy a condition in the table in subsection 40‑1005(5) for the trees.

             (2)  You may give the last entity (if any) that satisfied a condition mentioned in subsection 40‑1005(5) for the trees a written notice requiring the entity to give you any or all of the following information:

                     (a)  the amount of the expenditure covered under section 40‑1010 in relation to the trees;

                     (b)  the income year in which the trees were established.

             (3)  The notice must:

                     (a)  be given within 60 days of your beginning to satisfy the condition mentioned in paragraph (1)(c); and

                     (b)  specify a period of at least 60 days within which the information must be given; and

                     (c)  set out the effect of subsection (4).

Note:          Subsections (5), (6) and (7) explain how this subsection operates if the entity to which the notice is to be given is a partnership.

Requirement to comply with notice

             (4)  The entity to whom the notice is given must not intentionally refuse or fail to comply with the notice.

Penalty:  10 penalty units.

Giving the notice to a partnership

             (5)  If the entity to whom the notice is given is a partnership:

                     (a)  you may give it to the partnership by giving it to any of the partners (this does not limit how else you can give it); and

                     (b)  the obligation to comply with the notice is imposed on each of the partners (not on the partnership), but may be discharged by any of them.

             (6)  A partner must not intentionally refuse or fail to comply with that obligation.

Penalty:  10 penalty units.

             (7)  Subsection (6) does not apply if another partner has already complied with that obligation.

Note:          A defendant bears an evidential burden in relation to the matters in subsection (7), see subsection 13.3(3) of the Criminal Code.

Limits on giving a notice

             (8)  Only one notice can be given in relation to the same trees.

As at 20 February 2012 the amendments are not incorporated in this compilation.

Note 6

Tax Laws Amendment (2009 Measures No. 2) Act 2009 (No. 42, 2009)

The following amendments commence on 1 July 2014:

Schedule 4

16  Section 13‑1 (table item headed “water”)

Repeal the item.

17  Section 67‑23 (table item 25)

Repeal the item.

18  Subdivision 402‑W

Repeal the Subdivision.

As at 20 February 2012 the amendments are not incorporated in this compilation.

Note 7

Tax Laws Amendment (2009 Measures No. 5) Act 2009 (No. 118, 2009)

The following amendments commence on 30 June 2016:

Schedule 6

6  Subsection 30‑45(1) (note)

Repeal the note.

7  Subsection 30‑45(2) (table item 4.2.41)

Repeal the item.

As at 20 February 2012 the amendments are not incorporated in this compilation.

Note 8

Subsection 707‑325(5) (note)—Schedule 1 (item 55) of the Tax Laws Amendment (2009 Budget Measures No. 2) Act 2009 (No. 133, 2009) provides as follows:

Schedule 1

55  Subsection 707‑325(5) (note)

Omit “and section 139CD of the Income Tax Assessment Act 1936 deal”, substitute “deals”.

The proposed amendment was misdescribed and is not incorporated in this compilation.

Note 9

Tax Laws Amendment (2009 Measures No. 6) Act 2010 (No. 19, 2010) (as amended by the Superannuation Legislation Amendment Act 2010
(No. 117, 2010))

The amendments made by the Superannuation Legislation Amendment Act 2010 commenced on 17 November 2010 and have been incorporated into this Note.

The following amendments commence on 1 July 2013:

Schedule 2

12  Subsection 40‑340(1) (table item 6)

Repeal the item.

13  Section 112‑97 (table items 33 and 34)

Repeal the items.

14  Subsection 115‑30(1) (table item 10)

Repeal the item.

15  Section 116‑25 (table item dealing with CGT event A1)

Omit “If a roll‑over under Subdivision 310‑D applies: see section 116‑110”.

16  Section 116‑25 (table item dealing with CGT event C2)

Omit “, 116‑80 and 116‑110”, substitute “and 116‑80”.

17  Section 116‑25 (table item dealing with CGT event E2)

Omit “If a roll‑over under Subdivision 310‑D applies: see section 116‑110”, substitute “None”.

18  Section 116‑110

Repeal the section.

21  Division 310

Repeal the Division.

As at 20 February 2012 the amendments are not incorporated in this compilation.

Note 10

Tax Laws Amendment (2010 Measures No. 2) Act 2010 (No. 75, 2010)

The following amendments commence on 1 January 2018:

Schedule 5

10  Section 11‑5 (table item headed “charity, education, science or religion”)

Omit:

Global Carbon Capture and Storage Institute Ltd...............

50‑5

11  Section 50‑5 (table item 1.8)

Repeal the item.

As at 20 February 2012 the amendments are not incorporated in this compilation.

Note 11

Superannuation Legislation Amendment Act 2010 (No. 117, 2010)

The following amendment commences on 1 January 2017:

Schedule 2

6  Paragraph 295‑460(b) (note)

Repeal the note.

As at 20 February 2012 the amendment is not incorporated in this compilation.

Note 12

Tax Laws Amendment (Temporary Flood and Cyclone Reconstruction Levy) Act 2011 (No. 16, 2011)

The following amendments commence on 1 July 2016:

Schedule 2

1  Subsection 4‑10(3) (note 1)

Omit “Note 1”, substitute “Note”.

2  Subsection 4‑10(3) (note 2)

Repeal the note.

As at 20 February 2012 the amendments are not incorporated in this compilation.

Note 13

Tax Laws Amendment (2011 Measures No. 1) Act 2011 (No. 31, 2011)

The following amendments commence on 1 July 2014:

Schedule 1

3  Section 11‑15 (table item headed “welfare”)

Omit:

Assistance for New Zealand non‑protected special category visa holders for a disaster that occurred in Australia during the 2010‑11 financial year.....................................................................



51‑30

Disaster Income Recovery Subsidy for the floods that occurred in Australia during the period starting on 29 November 2010, or for Cyclone Yasi......................................



51‑30

4  Section 51‑30 (table items 5.1A and 5.1B)

Repeal the items.

Schedule 2

4  Section 11‑55 (table item headed “disasters”)

Repeal the item.

5  Sections 59‑55 and 59‑60

Repeal the sections.

As at 20 February 2012 the amendments are not incorporated in this compilation.

Note 14

Tax Laws Amendment (2011 Measures No. 2) Act 2011 (No. 41, 2011)

The following amendments commence on 1 July 2016:

Schedule 1

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

Repeal the table items.

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

Repeal the table items.

As at 20 February 2012 the amendments are not incorporated in this compilation.

Note 15

Families, Housing, Community Services and Indigenous Affairs and Other Legislation Amendment (Election Commitments and Other Measures) Act 2011 (No. 50, 2011)

The following amendments commence on 1 July 2014:

Schedule 4

10  Section 11‑15 (table item headed “welfare”)

Omit:

thalidomide payment—ex‑gratia payment.......................

51‑30

11  Section 51‑30 (table item 5.5)

Repeal the item.

As at 20 February 2012 the amendments are not incorporated in this compilation.

Note 16

Tax Laws Amendment (2011 Measures No. 6) Act 2011 (No. 129, 2011)

The following amendments commence on 1 July 2013:

Schedule 3

9  Subsection 30‑20(2) (table item 1.2.17)

Repeal the item.

10  Section 30‑315 (table item 27A)

Repeal the item.

The following amendments commence on 1 July 2014:

Schedule 3

11  Subsection 30‑20(2) (table item 1.2.16)

Repeal the item.

12  Section 30‑315 (table item 73A)

Repeal the item.

The following amendments commence on 1 July 2015:

Schedule 3

13  Subsection 30‑80(2) (table item 9.2.24)

Repeal the item.

14  Section 30‑315 (table item 31AA)

Repeal the item.

As at 20 February 2012 the amendments are not incorporated in this compilation.

Note 17

Clean Energy (Consequential Amendments) Act 2011 (No. 132, 2011)

The following amendments commence on 2 April 2012:

Schedule 2

4  Section 10‑5 (after table item headed “recoupment”)

Insert:

registered emissions units

 

disposal of................................................................................

420‑25

disposal for a non‑commercial purpose.............................

420‑40

difference between opening and closing value of............

420‑45

5  Section 12‑5 (after table item headed “children’s income”)

Insert:

clean energy

 

unit shortfall charge...............................................................

26‑18

6  Section 12‑5 (after table item headed “regional headquarters (RHQs)”)

Insert:

registered emissions units

 

expenditure incurred in becoming the holder of...............

420‑15

expenditure incurred in ceasing to hold..............................

420‑42

excess of opening over closing value of.............................

420‑45

7  Subsection 20‑30(1) (after table item 1.27)

Insert:

 

1.27A

420‑15

registered emissions unit

 

8  After section 26‑17

Insert:

26‑18  Unit shortfall charge—clean energy

                   You cannot deduct under this Act unit shortfall charge (within the meaning of the Clean Energy Act 2011).

9  Section 67‑23 (after table item 23)

Insert:

24

conservation tillage

the *tax offset available under Subdivision 385‑J

10  At the end of Subdivision 70‑A

Add:

70‑12  Registered emissions units

                   A *registered emissions unit is not *trading stock.

11  At the end of section 70‑30 (before the note)

Add:

             (6)  Subsection (1) does not apply if:

                     (a)  you start holding an item as *trading stock; and

                     (b)  immediately before you started holding the item as trading stock, you *held the item as a *registered emissions unit.

12  Section 70‑110

Before “If you stop”, insert “(1)”.

13  At the end of section 70‑110 (after example 2, before the note)

Add:

             (2)  This section does not apply if:

                     (a)  you stop holding an item as *trading stock; and

                     (b)  immediately after you stopped holding the item as trading stock, you start to *hold the item as a *registered emissions unit.

14  Section 104‑5 (before table item relating to CGT event K2)

Insert:

K1 As the result of an incoming international transfer of a *carbon unit, an *international emissions unit or an *Australian carbon credit unit from your foreign account or your nominee’s foreign account, you start to hold the unit as a registered emissions unit

[See section 104‑205]

when you start to hold the unit as a registered emissions unit

market value of unit less its cost base

reduced cost base of unit less its market value

15  Before section 104‑210

Insert:

104‑205  Incoming international transfer of emissions unit: CGT event K1

             (1)  CGT event K1 happens if:

                     (a)  any of the following conditions is satisfied:

                              (i)  a *carbon unit is transferred from your foreign account (within the meaning of the Clean Energy Act 2011) to your Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011) or your nominee’s Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011);

                             (ii)  a *carbon unit is transferred from your nominee’s foreign account (within the meaning of the Clean Energy Act 2011) to your Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011) or your nominee’s Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011);

                            (iii)  an *international emissions unit is transferred from your foreign account (within the meaning of the Australian National Registry of Emissions Units Act 2011) to your Registry account (within the meaning of that Act) or your nominee’s Registry account (within the meaning of that Act);

                            (iv)  an *international emissions unit is transferred from your nominee’s foreign account (within the meaning of the Australian National Registry of Emissions Units Act 2011) to your Registry account (within the meaning of that Act) or your nominee’s Registry account (within the meaning of that Act);

                             (v)  an *Australian carbon credit unit is transferred from your foreign account (within the meaning of the Carbon Credits (Carbon Farming Initiative) Act 2011) to your Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011) or your nominee’s Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011);

                            (vi)  an *Australian carbon credit unit is transferred from your nominee’s foreign account (within the meaning of the Carbon Credits (Carbon Farming Initiative) Act 2011) to your Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011) or your nominee’s Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011); and

                     (b)  as a result of the transfer, you start to *hold the unit as a *registered emissions unit; and

                     (c)  just before the transfer, the unit was neither your *trading stock nor your *revenue asset.

             (2)  The time of the event is when you start to *hold the unit as a *registered emissions unit.

             (3)  You make a capital gain if the unit’s *market value (just before you started to *hold the unit as a *registered emissions unit) is more than its *cost base. You make a capital loss if that market value is less than its *reduced cost base.

15A  Section 109‑60 (table item 11)

Omit “70‑110(b)”, substitute “70‑110(1)(b)”.

15B  Section 112‑97 (table item 1)

Omit “70‑110(b)”, substitute “70‑110(1)(b)”.

16  Section 112‑97 (after table item 18)

Insert:

18A

You cease to hold a registered emissions unit as the result of an outgoing international transfer of an *international emissions unit

First element of cost base and reduced cost base

Section 420‑35

17  After section 118‑13

Insert:

118‑15  Registered emissions units

             (1)  A *capital gain or *capital loss you make from a *registered emissions unit is disregarded.

             (2)  A *capital gain or *capital loss you make from a right to receive a *free carbon unit is disregarded.

             (3)  A *capital gain or *capital loss you make from a right to receive an *Australian carbon credit unit is disregarded.

18  Subsection 122‑25(2) (paragraph (d) of the cell at table item 1, column headed “This Subdivision does not apply to:”)

Omit “creation”, substitute “creation; or”.

19  Subsection 122‑25(2) (at the end of the cell at table item 1, column headed “This Subdivision does not apply to:”)

Add:

(e) an asset that becomes a *registered emissions unit *held by the company just after the *disposal or creation

20  Subsection 122‑25(2) (paragraph (c) of the cell at table item 2, column headed “This Subdivision does not apply to:”)

Omit “disposed of it)”, substitute “disposed of it); or”.

21  Subsection 122‑25(2) (at the end of the cell at table item 2, column headed “This Subdivision does not apply to:”)

Add:

(d) an asset that becomes a *registered emissions unit *held by the company just after the *disposal or creation (unless it was a registered emissions unit held by you when you disposed of it)

22  At the end of subsection 122‑25(3)

Add:

               ; or (d)  a *registered emissions unit.

23  At the end of section 124‑75

Add:

             (6)  The other asset cannot become a *registered emissions unit *held by you just after you *acquire it.

23A  At the end of subsection 124‑80(2)

Add “nor can it be a *registered emissions unit”.

24  Subsection 126‑50(2)

Omit all the words after “not”, substitute:

                   be:

                     (a)  *trading stock of the recipient company just after the time of the trigger event; or

                     (b)  a *registered emissions unit *held by the recipient company just after the time of the trigger event.

25  After subsection 126‑50(3)

Insert:

          (3A)  If:

                     (a)  the roll‑over asset is an option referred to in Division 134; and

                     (b)  the recipient company *acquires another *CGT asset by exercising the option;

the other asset cannot become a *registered emissions unit *held by the recipient company just after the recipient company acquired it.

26  At the end of Subdivision 230‑H

Add:

230‑481  Registered emissions units

                   A *registered emissions unit is exempt from this Division.

27  At the end of Division 385

Add:

Subdivision 385‑JRefundable tax offset for conservation tillage

385‑175  Refundable tax offset for conservation tillage

             (1)  You are entitled to a *tax offset under this section (the conservation tillage offset) for an income year in respect of a *depreciating asset if:

                     (a)  the asset is an *eligible no‑till seeder; and

                     (b)  the income year is:

                              (i)  the 2012‑13 income year; or

                             (ii)  the 2013‑14 income year; or

                            (iii)  the 2014‑15 income year; and

                     (c)  at a particular time during the income year, you:

                              (i)  start to use the asset to carry on a *primary production business (without previously having the asset *installed ready for use); or

                             (ii)  have the asset installed ready for use to carry on a primary production business; and

                     (d)  at the time mentioned in paragraph (c), you *hold the asset; and

                     (e)  the time mentioned in paragraph (c) is not:

                              (i)  before 1 July 2012; or

                             (ii)  after 30 June 2015; and

                      (f)  the *Agriculture Secretary has issued a Research Participation Certificate to you under section 385‑190 for the income year; and

                     (g)  you claim the offset in your *income tax return for the income year.

Note:          The conservation tillage offset is a refundable tax offset: see section 67‑23.

             (2)  You are not entitled to the conservation tillage offset if the *depreciating asset has, at any time before the time mentioned in paragraph (1)(c), been used, or *installed ready for use, by:

                     (a)  you; or

                     (b)  any other entity.

385‑180  Amount of the conservation tillage offset

                   The amount of the conservation tillage offset is 15% of the *cost of the *depreciating asset.

385‑185  Application for Research Participation Certificate

Application

             (1)  An entity may apply to the *Agriculture Secretary for the issue of a Research Participation Certificate to the entity for an income year under section 385‑190.

Form of application

             (2)  The application must:

                     (a)  be in writing; and

                     (b)  be in a form approved, in writing, by the *Agriculture Secretary.

385‑190  Issue of Research Participation Certificate

             (1)  The *Agriculture Secretary must issue a written certificate to an entity for an income year if:

                     (a)  the entity has made an application under section 385‑185 in relation to the income year; and

                     (b)  the Agriculture Secretary is satisfied that the entity has, at any time during the income year, completed a conservation tillage survey; and

                     (c)  the time mentioned in paragraph (b) is not:

                              (i)  before 1 July 2012; or

                             (ii)  after 30 June 2015.

             (2)  A certificate under this section is to be known as a Research Participation Certificate.

             (3)  For the purposes of this section, a conservation tillage survey is a survey:

                     (a)  conducted by the *Agriculture Secretary; and

                     (b)  that relates to:

                              (i)  farming practices; and

                             (ii)  climate change.

             (4)  For the purposes of this section, an entity completes a conservation tillage survey if the entity:

                     (a)  fills up and supplies, in accordance with the instructions set out in the relevant survey form, the information specified in the survey form; and

                     (b)  gives the filled‑up survey form to a person specified in the instructions.

385‑195  Notice of refusal to issue Research Participation Certificate

                   If:

                     (a)  an entity makes an application under section 385‑185 for the issue of a Research Participation Certificate to the entity for an income year; and

                     (b)  the *Agriculture Secretary decides not to issue a Research Participation Certificate under section 385‑190 to the applicant for the income year;

the Agriculture Secretary must give the applicant written notice of the decision (including reasons for the decision).

385‑200  Revocation of Research Participation Certificate

             (1)  The *Agriculture Secretary may revoke a Research Participation Certificate issued to an entity under section 385‑190 if the Agriculture Secretary is satisfied that the issue of the certificate was obtained by fraud or serious misrepresentation.

             (2)  If the *Agriculture Secretary revokes a Research Participation Certificate under subsection (1), the Agriculture Secretary must give the entity to whom the certificate was issued written notice of the revocation (including reasons for the decision to revoke the certificate).

             (3)  If a certificate is revoked under subsection (1), it is taken, for the purposes of this Subdivision, never to have been issued.

Note:          This means that if an assessment of an entity’s income tax is issued on the basis that the entity is entitled to a conservation tillage offset and the Research Participation Certificate is then revoked, the assessment will be amended to take account of the fact that the entity was never entitled to conservation tillage offset: see section 385‑220.

             (4)  Subsection (3) does not apply for the purposes of:

                     (a)  the operation of this section or section 385‑210; or

                     (b)  a review by a court or the *AAT of the decision to revoke the Research Participation Certificate.

385‑205  Notification relating to Research Participation Certificate

             (1)  The *Agriculture Secretary must:

                     (a)  give the Commissioner written notice of the issue of a Research Participation Certificate to an entity; and

                     (b)  do so within 30 days after issuing the certificate.

             (2)  The *Agriculture Secretary must:

                     (a)  give the Commissioner written notice of the revocation of a Research Participation Certificate issued to an entity; and

                     (b)  do so within 30 days after revoking the certificate.

             (3)  A notice under subsection (1) or (2) must specify:

                     (a)  the income year to which the Research Participation Certificate relates; and

                     (b)  the date of issue of the Research Participation Certificate; and

                     (c)  the name of the entity; and

                     (d)  if the entity has an *ABN—the ABN; and

                     (e)  such other matters (if any) as the *Agriculture Secretary considers should be reported to the Commissioner.

             (4)  A notice under subsection (1) or (2) must be accompanied by a copy of the Research Participation Certificate concerned.

385‑210  Notice of decision or determination

             (1)  This section applies to a notice of a decision given under section 385‑195 (refusal to issue a Research Participation Certificate) or 385‑200 (revocation of a Research Participation Certificate).

             (2)  The notice of the decision or determination is to include the statements set out in subsections (3) and (4).

             (3)  There must be a statement to the effect that, subject to the Administrative Appeals Tribunal Act 1975, an application may be made to the *AAT, by (or on behalf of) any entity whose interests are affected by the decision or determination, for review of the decision or determination.

             (4)  There must also be a statement to the effect that a request may be made under section 28 of the Administrative Appeals Tribunal Act 1975 by (or on behalf of) such an entity for a statement:

                     (a)  setting out the findings on material questions of fact; and

                     (b)  referring to the evidence or other material on which those findings were based; and

                     (c)  giving the reasons for the decision or determination;

except where subsection 28(4) of that Act applies.

             (5)  If the *Agriculture Secretary fails to comply with subsection (3) or (4), that failure does not affect the validity of the decision or determination.

385‑215  Review of decisions by the Administrative Appeals Tribunal

                   Applications may be made to the *AAT for review of:

                     (a)  a decision made by the *Agriculture Secretary to refuse an application for a Research Participation Certificate under section 385‑190; or

                     (b)  a decision made by the Agriculture Secretary under section 385‑200 to revoke a Research Participation Certificate.

385‑220  Amendment of assessments

                   Section 170 of the Income Tax Assessment Act 1936 does not prevent the amendment of an assessment for the purposes of giving effect to this Subdivision for an income year if:

                     (a)  a Research Participation Certificate issued to an entity for an income year is revoked under section 385‑200 after the time the entity lodged its *income tax return for the income year; and

                     (b)  the amendment is made at any time during the period of 4 years starting immediately after the revocation of the Research Participation Certificate.

Note:          Section 170 of that Act specifies the periods within which assessments may be amended.

385‑225  Evidentiary certificate

             (1)  If requested to do so by the Commissioner, the *Agriculture Secretary may, by writing, certify that a specified asset is an *eligible no‑till seeder.

             (2)  In any proceedings arising out of this Subdivision, a certificate under subsection (1) is prima facie evidence of the matter certified.

             (3)  A document purporting to be a certificate under subsection (1) must, unless the contrary is established, be taken to be such a certificate and to have been properly given.

385‑230  Delegation by Agriculture Secretary

                   The *Agriculture Secretary may, by writing, delegate any or all of his or her functions and powers under this Subdivision to an SES employee, or acting SES employee, in the *Agriculture Department.

Note:          The expressions SES employee and acting SES employee are defined in the Acts Interpretation Act 1901.

385‑235  Eligible no‑till seeder

                   An eligible no‑till seeder is a no‑till seeder (comprising the combination of cart and tool) that is:

                     (a)  a tine machine fitted with minimum tillage points designed to achieve minimum soil disturbance and less than full cut‑out; or

                     (b)  a disc opener with single, double or triple disc blades designed to achieve minimum soil disturbance and less than full cut‑out; or

                     (c)  a disc/tine hybrid machine fitted with:

                              (i)  single, double or triple disc blades designed to achieve minimum soil disturbance and less than full cut‑out; and

                             (ii)  minimum tillage points designed to achieve minimum soil disturbance and less than full cut‑out; or

                     (d)  a disc/blade hybrid machine fitted with:

                              (i)  single, double or triple disc blades designed to achieve minimum soil disturbance and less than full cut‑out; and

                             (ii)  blades designed to achieve minimum soil disturbance and less than full cut‑out.

For the purposes of paragraph (a) and subparagraph (c)(ii), each of the following points are taken to be minimum tillage points designed to achieve minimum soil disturbance and less than full cut‑out:

                     (e)  narrow points;

                      (f)  knife points;

                     (g)  inverted “T” points.

28  After Part 3‑45

Insert:

Part 3‑50Climate change

Division 420Registered emissions units

Table of Subdivisions

             Guide to Division 420

420‑A   Registered emissions units

420‑B    Acquiring registered emissions units

420‑C    Disposing of registered emissions units etc.

420‑D   Accounting for registered emissions units you hold at the start or end of the income year

420‑E    Exclusivity of Division

Guide to Division 420

420‑1  What this Division is about

This Division deals with amounts you can deduct, and amounts included in your assessable income, because of these situations:

•      you acquire a registered emissions unit;

•      you hold a registered emissions unit at the start or the end of the income year;

•      you dispose of a registered emissions unit.

Table of sections

420‑5        The 4 key features of tax accounting for registered emissions units

420‑5  The 4 key features of tax accounting for registered emissions units

                   The purpose of income tax accounting for registered emissions units is to produce the same tax treatment, irrespective of your purpose in acquiring or holding the registered emissions units.

                   There are 4 key features:

             (1)  You bring your gross expenditure and gross proceeds to account, not your net profits and losses on disposal of a registered emissions unit.

             (2)  The gross expenditure is deductible.

             (3)  The gross proceeds are assessable income.

             (4)  You must bring to account any difference between the value of your registered emissions units held at the start and at the end of the income year. This is done in such a way that:

                     (a)  any increase in value is included in assessable income; and

                     (b)  any decrease in value is a deduction.

Subdivision 420‑ARegistered emissions units

Table of sections

420‑10      Meaning of registered emissions unit

420‑12      Meaning of hold a registered emissions unit

420‑10  Meaning of registered emissions unit

A registered emissions unit is:

                     (a)  a *carbon unit; or

                     (b)  a *Kyoto unit; or

                     (c)  a *prescribed international unit; or

                     (d)  an *Australian carbon credit unit;

for which there is an entry in a Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011).

420‑12  Meaning of hold a registered emissions unit

             (1)  You hold a *registered emissions unit if you are the entity in whose Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011) there is an entry for the unit.

             (2)  However, if the entity (the nominee entity) in whose Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011) there is an entry for a *registered emissions unit holds the unit as nominee for another entity:

                     (a)  the other entity is taken to hold the unit; and

                     (b)  the nominee entity is taken not to hold the unit.

Subdivision 420‑BAcquiring registered emissions units

Table of sections

420‑15      What you can deduct

420‑20      Non‑arm’s length transactions and transactions with associates

420‑21      Incoming international transfers of emissions units

420‑22      Becoming taxable in Australia on the proceeds of sale of registered emissions units

420‑15  What you can deduct

             (1)  You can deduct expenditure to the extent that you incur it in becoming the *holder of a *registered emissions unit.

Note:          A carbon unit is an example of a registered emissions unit. You can become the holder of a carbon unit as a result of the unit being issued to you under the Clean Energy Act 2011 or as a result of your acquisition of the unit from another entity.

Timing

             (2)  You deduct the expenditure in the income year in which you start to *hold the *registered emissions unit.

Free carbon units

             (3)  You cannot deduct under this section expenditure you incur in becoming the *holder of a *carbon unit issued to you in accordance with:

                     (a)  the Jobs and Competitiveness Program (within the meaning of the Clean Energy Act 2011); or

                     (b)  Part 8 (coal‑fired electricity generation) of that Act.

Australian carbon credit units

             (4)  You cannot deduct under this section expenditure you incur in becoming the *holder of an *Australian carbon credit unit issued to you in accordance with the Carbon Credits (Carbon Farming Initiative) Act 2011 unless you incur the expenditure in preparing or lodging:

                     (a)  an application for a certificate of entitlement (within the meaning of that Act); or

                     (b)  an offsets report (within the meaning of that Act).

No deduction if sale proceeds would not be assessable

             (5)  You cannot deduct under this section expenditure you incur in becoming the *holder of a *registered emissions unit if, assuming that you had sold the unit to someone else immediately after you started to *hold the unit, the proceeds of the sale would not have been included in your assessable income under section 420‑25.

Note:          Under the International Tax Agreements Act 1953, for some foreign residents, the proceeds of the sale of a registered emissions unit are not assessable income in Australia.

420‑20  Non‑arm’s length transactions and transactions with associates

             (1)  If:

                     (a)  an entity becomes the *holder of a *registered emissions unit; and

                     (b)  either:

                              (i)  the entity and the previous holder of the unit did not deal with each other at arm’s length; or

                             (ii)  the previous holder is the entity’s *associate; and

                     (c)  the entity did not pay or give consideration equal to the *market value of the unit for becoming the holder of the unit;

the entity is treated as if:

                     (d)  the entity had incurred expenditure in becoming the holder of the unit; and

                     (e)  the amount of the expenditure were equal to that market value.

             (2)  This section does not apply if a *registered emissions unit *held by an individual just before the individual’s death:

                     (a)  devolves to the individual’s *legal personal representative; or

                     (b)  *passes to a beneficiary in the individual’s estate.

             (3)  This section does not apply to:

                     (a)  the issue of a *carbon unit under the Clean Energy Act 2011; or

                     (b)  the issue of an *Australian carbon credit unit under the Carbon Credits (Carbon Farming Initiative) Act 2011.

Note:          In the application of Division 13 of Part III of the Income Tax Assessment Act 1936 (about international transfer‑pricing arrangements), this section is disregarded—see subsection 136AB(2) of the Income Tax Assessment Act 1936.

420‑21  Incoming international transfers of emissions units

Unit held as trading stock or as a revenue asset

             (1)  If:

                     (a)  any of the following conditions is satisfied:

                              (i)  a *carbon unit is transferred from your foreign account (within the meaning of the Clean Energy Act 2011) to your Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011) or your nominee’s Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011);

                             (ii)  a carbon unit is transferred from your nominee’s foreign account (within the meaning of the Clean Energy Act 2011) to your Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011) or your nominee’s Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011);

                            (iii)  an *international emissions unit is transferred from your foreign account (within the meaning of the Australian National Registry of Emissions Units Act 2011) to your Registry account (within the meaning of that Act) or your nominee’s Registry account (within the meaning of that Act);

                            (iv)  an international emissions unit is transferred from your nominee’s foreign account (within the meaning of the Australian National Registry of Emissions Units Act 2011) to your Registry account (within the meaning of that Act) or your nominee’s Registry account (within the meaning of that Act);

                             (v)  an *Australian carbon credit unit is transferred from your foreign account (within the meaning of the Carbon Credits (Carbon Farming Initiative) Act 2011) to your Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011) or your nominee’s Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011);

                            (vi)  an Australian carbon credit unit is transferred from your nominee’s foreign account (within the meaning of the Carbon Credits (Carbon Farming Initiative) Act 2011) to your Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011) or your nominee’s Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011); and

                     (b)  as a result of the transfer, you start to *hold the unit as a *registered emissions unit; and

                     (c)  just before the transfer, the unit was your *trading stock or *revenue asset;

you are treated as if:

                     (d)  just before the transfer, you had sold the unit to someone else for its *cost; and

                     (e)  you had, immediately after the sale, bought it back as a registered emissions unit for the same amount.

Example:    An Australian resident company carries on a business of trading in emissions units. The units are trading stock. The company owns 10,000 emission reduction units (a type of international emissions unit) that are registered in New Zealand. 5,000 of those emission reduction units are transferred from the company’s New Zealand registry account to the company’s Australian registry account.

                   The company is treated as having sold each unit to someone else at its cost just before it became a registered emissions unit. As the unit was previously held as trading stock, the unit ceases to be trading stock (section 70‑12). The cost of the unit just before it became a registered emissions unit is included in the company’s assessable income.

                   The company is also treated as having bought 5,000 registered emissions units for the same amount. The company is entitled to a deduction for that amount (section 420‑15).

Unit held otherwise than as trading stock or as a revenue asset

             (2)  If:

                     (a)  any of the following conditions is satisfied:

                              (i)  a *carbon unit is transferred from your foreign account (within the meaning of the Clean Energy Act 2011) to your Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011) or your nominee’s Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011);

                             (ii)  a carbon unit is transferred from your nominee’s foreign account (within the meaning of the Clean Energy Act 2011) to your Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011) or your nominee’s Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011);

                            (iii)  an *international emissions unit is transferred from your foreign account (within the meaning of the Australian National Registry of Emissions Units Act 2011) to your Registry account (within the meaning of that Act) or your nominee’s Registry account (within the meaning of that Act);

                            (iv)  an international emissions unit is transferred from your nominee’s foreign account (within the meaning of the Australian National Registry of Emissions Units Act 2011) to your Registry account (within the meaning of that Act) or your nominee’s Registry account (within the meaning of that Act);

                             (v)  an *Australian carbon credit unit is transferred from your foreign account (within the meaning of the Carbon Credits (Carbon Farming Initiative) Act 2011) to your Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011) or your nominee’s Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011);

                            (vi)  an Australian carbon credit unit is transferred from your nominee’s foreign account (within the meaning of the Carbon Credits (Carbon Farming Initiative) Act 2011) to your Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011) or your nominee’s Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011); and

                     (b)  as a result of the transfer, you start to *hold the unit as a *registered emissions unit; and

                     (c)  just before the transfer, the unit was neither your *trading stock nor your *revenue asset;

you are treated as if:

                     (d)  just before the transfer, you had sold the unit to someone else for its *market value just before the transfer; and

                     (e)  you had, immediately after the sale, bought it back as a registered emissions unit for the same amount.

420‑22  Becoming taxable in Australia on the proceeds of sale of registered emissions units

                   If:

                     (a)  you start to *hold a *registered emissions unit at a particular time; and

                     (b)  assuming that you had sold the unit to someone else immediately after you started to hold the unit, the proceeds of the sale would not have been included in your assessable income under section 420‑25; and

                     (c)  you hold the unit until a later time (the taxable status commencement time), where the following conditions are satisfied:

                              (i)  assuming that you had sold the unit to someone else immediately before the taxable status commencement time, the proceeds of the sale would not have been included in your assessable income under section 420‑25;

                             (ii)  assuming that you had sold the unit to someone else at the taxable status commencement time, the proceeds of the sale would have been included in your assessable income under section 420‑25;

you are treated as if:

                     (d)  immediately after the taxable status commencement time, you had bought the unit from someone else for its *market value; and

                     (e)  you had started to hold the unit immediately after the taxable status commencement time instead of at the time mentioned in paragraph (a).

Note:          Under the International Tax Agreements Act 1953, for some foreign residents, the proceeds of the sale of a registered emissions unit are not assessable income in Australia.

Subdivision 420‑CDisposing of registered emissions units etc.

Table of sections

420‑25      Assessable income on disposal of registered emissions units

420‑30      Non‑arm’s length transactions and transactions with associates

420‑35      Outgoing international transfers of emissions units

420‑40      Disposal of registered emissions units for a purpose other than gaining assessable income

420‑41      Ceasing to be taxable in Australia on the proceeds of sale of registered emissions units

420‑42      Deduction for expenses incurred in ceasing to hold a registered emissions unit

420‑43      Deduction for charge imposed on the surrender of an eligible international emissions unit

420‑25  Assessable income on disposal of registered emissions units

             (1)  Your assessable income includes an amount that you are entitled to receive because you cease to *hold a *registered emissions unit.

Timing

             (2)  The amount is included in your assessable income for the income year in which you cease to *hold the unit.

Source

             (3)  An amount included in your assessable income under subsection (1) is taken, for the purposes of the *income tax laws, to have a source in Australia.

420‑30  Non‑arm’s length transactions and transactions with associates

                   If:

                     (a)  an entity (the transferor) ceases to *hold a *registered emissions unit; and

                     (b)  the cessation is because of the transfer of the unit to:

                              (i)  a Registry account (within the meaning of the Australian National Registry of Emissions Units Act 2011); or

                             (ii)  a foreign account (within the meaning of that Act);

                            kept by another entity (the transferee); and

                     (c)  either:

                              (i)  the transferor and the transferee did not deal with each other at arm’s length; or

                             (ii)  the transferee is the transferor’s *associate; and

                     (d)  the transferee did not pay or give consideration equal to the *market value of the unit for the transfer of the unit;

the transferor is treated as if the transferor were entitled to receive an amount equal to that market value because the transferor ceased to be the holder of the unit.

Note:          In the application of Division 13 of Part III of the Income Tax Assessment Act 1936 (about international transfer‑pricing arrangements), this section is disregarded—see subsection 136AB(2) of the Income Tax Assessment Act 1936.

420‑35  Outgoing international transfers of emissions units

                   If:

                     (a)  you stop *holding a *registered emissions unit; and

                     (b)  you do so as a result of the transfer of the unit to:

                              (i)  if the unit is a *carbon unit—your foreign account (within the meaning of the Clean Energy Act 2011) or your nominee’s foreign account (within the meaning of that Act); or

                             (ii)  if the unit is an *international emissions unit—your foreign account (within the meaning of the Australian National Registry of Emissions Units Act 2011) or your nominee’s foreign account (within the meaning of that Act); or

                            (iii)  if the unit is an *Australian carbon credit unit—your foreign account (within the meaning of the Carbon Credits (Carbon Farming Initiative) Act 2011) or your nominee’s foreign account (within the meaning of that Act);

you are treated as if:

                     (c)  just before the transfer, you had sold the unit to someone else for its *market value just before the transfer; and

                     (d)  you had, immediately after the sale, bought it back for the same amount.

Example:    An Australian resident company carries on a business of trading in emission units. The company owns 10,000 emission reduction units (a type of international emissions unit) that are registered in Australia. 5,000 of those units are transferred from the company’s Australian registry account to the company’s New Zealand registry account.

                   The company is treated as having sold each unit to someone else at its market value just before it stopped being a registered emissions unit. As the unit was a registered emissions unit, the market value is included in the company’s assessable income (section 420‑25).

                   The company is also treated as having bought 5,000 emission reduction units for the same amount. As those units are trading stock, the company may be able to deduct that amount under section 8‑1.

420‑40  Disposal of registered emissions units for a purpose other than gaining assessable income

             (1)  If:

                     (a)  an entity (the first entity) incurs expenditure in:

                              (i)  becoming the *holder of a *registered emissions unit; or

                             (ii)  ceasing to hold a registered emissions unit; and

                     (b)  the first entity has deducted or can deduct the expenditure under section 420‑15 or 420‑42; and

                     (c)  the first entity ceases to hold the unit in a particular income year; and

                     (d)  the cessation is neither:

                              (i)  in gaining or producing the first entity’s assessable income; nor

                             (ii)  in carrying on a *business for the purpose of gaining or producing the first entity’s assessable income; and

                     (e)  section 420‑30 (non‑arm’s length transactions and transactions with associates) did not apply to the first entity ceasing to hold the unit;

the first entity’s assessable income for that income year includes an amount equal to the amount the first entity has deducted or can deduct.

Death

             (2)  If:

                     (a)  the first entity is an individual; and

                     (b)  the cessation is because of the first entity’s death; and

                     (c)  the *registered emissions unit devolves to the first entity’s *legal personal representative;

then:

                     (d)  the first entity’s legal personal representative is treated as having bought the unit for the amount included in the first entity’s assessable income under subsection (1); and

                     (e)  if the unit *passes to a beneficiary in the first entity’s estate:

                              (i)  the first entity’s legal personal representative is treated as having disposed of the unit for the amount included in the first entity’s assessable income under subsection (1); and

                             (ii)  the beneficiary is treated as having bought the unit for the amount included in the first entity’s assessable income under subsection (1).

             (3)  If:

                     (a)  the first entity is an individual; and

                     (b)  the cessation is because of the first entity’s death; and

                     (c)  the *registered emissions unit *passes to a beneficiary in the first entity’s estate without devolving to the first entity’s *legal personal representative;

the beneficiary is treated as having bought the unit for the amount included in the first entity’s assessable income under subsection (1).

Transfer—treatment of acquirer

             (4)  If:

                     (a)  the cessation is because of the transfer of the unit to another entity; and

                     (b)  neither subsection (2) nor (3) applies;

the other entity is treated as having bought the unit for the amount included in the first entity’s assessable income under subsection (1).

             (5)  If subsection (4) applies to the transfer of the unit to another entity:

                     (a)  the first entity must inform the other entity that, as a result of subsection (4) applying, the other entity is treated as having bought the unit for a particular amount; and

                     (b)  the first entity must do so:

                              (i)  at, or as soon as practicable after, the time of the transfer; or

                             (ii)  by a later time allowed by the Commissioner.

Source

             (6)  An amount included in the first entity’s assessable income under subsection (1) is taken, for the purposes of the *income tax laws, to have a source in Australia.

420‑41  Ceasing to be taxable in Australia on the proceeds of sale of registered emissions units

                   If:

                     (a)  you start to *hold a *registered emissions unit; and

                     (b)  assuming that you had sold the unit to someone else immediately after you started to hold the unit, the proceeds of sale would have been included in your assessable income under section 420‑25; and

                     (c)  you hold the unit until a later time (the taxable status cessation time), where the following conditions are satisfied:

                              (i)  assuming that you had sold the unit to someone else immediately before the taxable status cessation time, the proceeds of the sale would have been included in your assessable income under section 420‑25;

                             (ii)  assuming that you had sold the unit to someone else at the taxable status cessation time, the proceeds of sale would not have been included in your assessable income under section 420‑25;

you are treated as if:

                     (d)  just before the taxable status cessation time, you had sold the unit to someone else for its *market value; and

                     (e)  you had, at the taxable status cessation time, bought it back for the same amount.

Note:          Under the International Tax Agreements Act 1953, for some foreign residents, the proceeds of the sale of a registered emissions unit are not assessable income in Australia.

420‑42  Deduction for expenses incurred in ceasing to hold a registered emissions unit

             (1)  You can deduct expenditure to the extent that you incur it in ceasing to *hold a *registered emissions unit.

Timing

             (2)  You deduct the expenditure in the income year in which you cease to *hold the *registered emissions unit.

420‑43  Deduction for charge imposed on the surrender of an eligible international emissions unit

             (1)  You can deduct an amount of charge imposed by the Clean Energy (International Unit Surrender Charge) Act 2011 on the surrender by you of an eligible international emissions unit (within the meaning of the Australian National Registry of Emissions Units Act 2011).

Timing

             (2)  You deduct the amount in the income year in which you pay the amount.

Subdivision 420‑DAccounting for registered emissions units you hold at the start or end of the income year

Table of sections

420‑45      You include the value of your registered emissions units in working out your assessable income and deductions

420‑50      Value of registered emissions units at start of income year

420‑51      Valuation methods

420‑52      FIFO cost method of working out the value of units

420‑53      Actual cost method of working out the value of units

420‑54      Market value method of working out the value of units

420‑55      Valuation method for first income year at the end of which you held registered emissions units

420‑57      Valuation method for later income years at the end of which you held registered emissions units

420‑58      Value of registered emissions units at end of income year—certain free carbon units

420‑60      Cost of registered emissions units

420‑45  You include the value of your registered emissions units in working out your assessable income and deductions

             (1)  You compare:

                     (a)  the *value of all *registered emissions units you *held at the start of the income year; and

                     (b)  the value of all registered emissions units you held at the end of the income year.

Increase in value is included in assessable income

             (2)  Your assessable income includes any excess of the *value at the end of the income year over the value at the start of the income year.

Decrease in value is a deduction

             (3)  On the other hand, you can deduct any excess of the *value at the start of the income year over the value at the end of the income year.

Source

             (4)  An amount included in your assessable income under subsection (2) is taken, for the purposes of the *income tax laws, to have a source in Australia.

Disregard value of unit if sale proceeds would not be assessable

             (5)  For the purposes of this Subdivision, disregard the *value of a *registered emissions unit you *held at the end of the income year if, assuming that you had sold the unit to someone else immediately after you started to hold the unit, the proceeds of the sale would not have been included in your assessable income under section 420‑25.

Note:          Under the International Tax Agreements Act 1953, for some foreign residents, the proceeds of the sale of a registered emissions unit are not assessable income in Australia.

420‑50  Value of registered emissions units at start of income year

             (1)  The value of a *registered emissions unit you *held at the start of an income year is the same amount at which it was taken into account under this Subdivision at the end of the last income year.

             (2)  The value of the unit is a nil amount if the unit was not taken into account under this Subdivision at the end of the last income year.

420‑51  Valuation methods

             (1)  The value of a *registered emissions unit you *held at the end of an income year is worked out using one of the following methods:

                     (a)  the *FIFO cost method;

                     (b)  the *actual cost method;

                     (c)  the *market value method.

Sections 420‑55 and 420‑57 tell you which method applies.

             (2)  This section has effect subject to section 420‑58 (certain free carbon units).

420‑52  FIFO cost method of working out the value of units

                   The FIFO cost method for working out the *value of the *registered emissions units you *held at the end of an income year means that the value of the units is the *cost of the registered emissions units, and, for the purposes of the application of this Subdivision to you for the income year:

                     (a)  if any of the registered emissions units are:

                              (i)  *carbon units that have a *vintage year that is the same as, or earlier than, the financial year to which the income year relates; or

                             (ii)  eligible international emissions units (within the meaning of the Australian National Registry of Emissions Units Act 2011); or

                            (iii)  *Australian carbon credit units;

                            you must account for those units on a first‑in first‑out basis; and

                     (b)  if:

                              (i)  any of the registered emissions units are carbon units that have the same vintage year; and

                             (ii)  that vintage year is later than the financial year to which the income year relates;

                            you must account for those units on a first‑in first‑out basis; and

                     (c)  if any of the registered emissions units are *Kyoto units that are not eligible international emissions units (within the meaning of the Australian National Registry of Emissions Units Act 2011)—you must account for those units on a first‑in first‑out basis.

420‑53  Actual cost method of working out the value of units

                   The actual cost method for working out the value of the *registered emissions units you *held at the end of the income year means that the value of the units is the *cost of the units, and, for the purposes of the application of this Subdivision to you for the income year, you must not account for any of those units on a first‑in first‑out basis.

420‑54  Market value method of working out the value of units

                   The market value method for working out the value of the *registered emissions units you *held at the end of the income year means that the value of the units is the *market value of the units at the end of the income year.

420‑55  Valuation method for first income year at the end of which you held registered emissions units

Scope

             (1)  This section applies if:

                     (a)  you *held one or more *registered emissions units at the end of an income year; and

                     (b)  the income year is the first income year at the end of which you held one or more registered emissions units.

Choice of method

             (2)  You may choose one of the following methods:

                     (a)  the *FIFO cost method;

                     (b)  the *actual cost method;

                     (c)  the *market value method;

for working out the value of the *registered emissions units you *held at the end of the income year.

FIFO cost method applies if no choice made

             (3)  If you do not make a choice under subsection (2) for the income year, the value of the *registered emissions units you *held at the end of the income year is worked out using the *FIFO cost method.

Time for making choice

             (4)  You must make a choice under subsection (2) before you lodge your *income tax return for the income year for which you make the choice.

No revocation of choice

             (5)  A choice made under subsection (2) cannot be revoked.

Certain free carbon units

             (6)  This section has effect subject to section 420‑58 (certain free carbon units).

420‑57  Valuation method for later income years at the end of which you held registered emissions units

Scope

             (1)  This section applies if:

                     (a)  you *held one or more *registered emissions units at the end of an income year (the current income year); and

                     (b)  the current income year is not the first income year at the end of which you held one or more registered emissions units.

Choice of method

             (2)  You may choose one of the following methods:

                     (a)  the *FIFO cost method;

                     (b)  the *actual cost method;

                     (c)  the *market value method;

for working out the value of the *registered emissions units you *held at the end of the current income year.

Previous method applies if no choice made

             (3)  If you do not make a choice under subsection (2) for the current income year, the value of the *registered emissions units you *held at the end of the current income year is worked out using the method that applied to the most recent income year at the end of which you held one or more registered emissions units.

Limitation on choice—before 2015‑16 income year

             (4)  If the current income year is before the 2015‑16 income year, you must not make a choice under subsection (2) for the current income year if you have previously made a choice under that subsection for an earlier income year.

Limitation on choice—2015‑16 income year or a later income year

             (5)  If the current income year is:

                     (a)  the 2015‑16 income year; or

                     (b)  a later income year;

you must not make a choice under subsection (2) for the current income year unless:

                     (c)  the same method applied for each of the 4 most recent income years at the end of which you *held one or more *registered emissions units; and

                     (d)  the method mentioned in paragraph (c) is different from the method to which your choice for the current income year relates.

Limitation on choice—change from FIFO cost method to actual cost method

             (6)  You must not choose under subsection (2) the *actual cost method for the current income year if the *FIFO cost method applied for the most recent income year at the end of which you *held one or more *registered emissions units.

Time for making choice

             (7)  You must make a choice under subsection (2) before you lodge your *income tax return for the income year for which you make the choice.

No revocation of choice

             (8)  A choice made under subsection (2) cannot be revoked.

Certain free carbon units

             (9)  This section has effect subject to section 420‑58 (certain free carbon units).

420‑58  Value of registered emissions units at end of income year—certain free carbon units

Scope

             (1)  This section applies to a *carbon unit with a particular *vintage year if:

                     (a)  it was issued to you in accordance with the Jobs and Competitiveness Program (within the meaning of the Clean Energy Act 2011); and

                     (b)  you *held it throughout the period:

                              (i)  beginning when it was issued to you; and

                             (ii)  ending at the end of an income year that ended before 1 February in the financial year next following the vintage year.

Value

             (2)  The value of the unit you *held at the end of an income year that ended during that period is a nil amount.

             (3)  For the purposes of:

                     (a)  subsection 420‑57(3); and

                     (b)  paragraph 420‑57(5)(c);

the method that applied to a previous income year mentioned in that subsection or paragraph, as the case may be, is the method that would have applied if this section had not been enacted.

420‑60  Cost of registered emissions units

Free carbon units

             (1)  If a *carbon unit was issued to you free of charge under the Clean Energy Act 2011, the cost of the unit is its *market value immediately after you began to *hold the unit.

             (2)  Subsection (1) does not affect the operation of section 420‑58.

Australian carbon credit units

             (3)  If an *Australian carbon credit unit was issued to you under the Carbon Credits (Carbon Farming Initiative) Act 2011, the cost of the unit is its *market value immediately after you began to *hold the unit.

Other registered emissions units

             (4)  If a *registered emissions unit (other than an *Australian carbon credit unit) was not issued to you free of charge under the Clean Energy Act 2011, the cost of the unit is the total of the expenditure that you:

                     (a)  incurred in becoming the *holder of the unit; and

                     (b)  can deduct under section 420‑15.

Subdivision 420‑EExclusivity of Division

Table of sections

420‑65      Exclusivity of deductions etc.

420‑70      Exclusivity of assessable income etc.

420‑65  Exclusivity of deductions etc.

Expenditure incurred in becoming the holder of a registered emissions unit

             (1)  You cannot deduct under any provision of this Act outside this Division any expenditure to the extent that you incur it in becoming the *holder of a *registered emissions unit.

             (2)  To the extent you incur expenditure in becoming the *holder of a *registered emissions unit, the expenditure is not to be taken into account in working out:

                     (a)  an amount you can deduct; or

                     (b)  an amount included in your assessable income;

under any provision of this Act outside this Division.

Free carbon units

             (3)  Subsections (1) and (2) do not affect the application of a provision of this Act outside this Division to expenditure you incur in becoming the *holder of a *carbon unit issued to you in accordance with:

                     (a)  the Jobs and Competitiveness Program (within the meaning of the Clean Energy Act 2011); or

                     (b)  Part 8 (coal‑fired electricity generation) of that Act.

Australian carbon credit units

             (4)  Subsections (1) and (2) do not affect the application of a provision of this Act outside this Division to expenditure you incur in becoming the *holder of an *Australian carbon credit unit issued to you in accordance with the Carbon Credits (Carbon Farming Initiative) Act 2011 if you do not incur the expenditure in preparing or lodging:

                     (a)  an application for a certificate of entitlement (within the meaning of that Act); or

                     (b)  an offsets report (within the meaning of that Act).

             (5)  Subsections (1) and (2) do not affect the operation of Division 30 (deductions for gifts and contributions).

Note:          If you make a gift or contribution, Division 30 applies in the normal way to determine whether you can deduct the amount of the gift or contribution.

Expenditure incurred in ceasing to hold a registered emissions unit

             (6)  You cannot deduct under any provision of this Act outside this Division any expenditure to the extent that you incur it in ceasing to *hold a *registered emissions unit.

420‑70  Exclusivity of assessable income etc.

             (1)  An amount that you are entitled to receive because you ceased to *hold a *registered emissions unit is not to be:

                     (a)  included in your assessable income; or

                     (b)  taken into account in working out your assessable income; or

                     (c)  taken into account in working out an amount you can deduct;

under any provision of this Act outside this Division.

             (2)  Subsection (1) does not affect the operation of Division 6 so far as that Division provides for the significance of residence or source for the assessability of ordinary and statutory income.

Note:          An amount included in your assessable income under this Division may be ordinary or statutory income for the purposes of Division 6.

Free carbon units

             (3)  An amount is not to be included in your assessable income under any provision of this Act outside this Division because a *carbon unit was issued to you in accordance with:

                     (a)  the Jobs and Competitiveness Program (within the meaning of the Clean Energy Act 2011); or

                     (b)  Part 8 (coal‑fired electricity generation) of that Act.

Note 1:       A capital gain or capital loss you make from a registered emissions unit is disregarded (subsection 118‑15(1)).

Note 2:       A capital gain or capital loss you make from a right to receive a free carbon unit is disregarded (subsection 118‑15(2)).

Australian carbon credit units

             (4)  An amount is not to be included in your assessable income under any provision of this Act outside this Division because an *Australian carbon credit unit was issued to you in accordance with the Carbon Credits (Carbon Farming Initiative) Act 2011.

Note 1:       A capital gain or capital loss you make from a registered emissions unit is disregarded (subsection 118‑15(1)).

Note 2:       A capital gain or capital loss you make from a right to receive an Australian carbon credit unit is disregarded (subsection 118‑15(3)).

29  Subsection 701‑10(5) (heading)

Repeal the heading, substitute:

Multiple setting of tax cost for same trading stock or registered emissions unit

30  Paragraph 701‑10(5)(a)

After “*trading stock”, insert “or a *registered emissions unit”.

31  Paragraph 701‑25(2)(a)

Repeal the paragraph, substitute:

                     (a)  either:

                              (i)  the asset is *trading stock of the *head company; or

                             (ii)  the asset is a *registered emissions unit and an asset of the head company; and

32  Subsection 701‑25(3) (note)

After “trading stock”, insert “or registered emissions units”.

33  Subsection 701‑25(4)

Omit “The asset is taken”, substitute “If subparagraph (2)(a)(i) applies, the asset is taken”.

34  At the end of section 701‑25 (after the note)

Add:

Setting value of registered emissions unit at tax‑neutral amount

             (5)  If subparagraph (2)(a)(ii) applies, the asset is taken to be an asset of the *head company at the end of the income year (but not at the start of the next income year) and the head company’s *value for the asset at that time is taken to be equal to:

                     (a)  if the asset was *held by the head company at the start of the income year—the value of the asset at the start of the income year; or

                     (b)  otherwise—the expenditure incurred by the head company in becoming the holder of the asset.

35  Subsection 701‑35(2)

Repeal the subsection, substitute:

Assets to which section applies

             (2)  This section applies in relation to an asset if:

                     (a)  the asset is *trading stock of the entity just before it becomes a *subsidiary member of the group; or

                     (b)  the asset is:

                              (i)  a *registered emissions unit; and

                             (ii)  an asset of the entity;

                            just before it becomes a subsidiary member of the group.

36  Subsection 701‑35(3) (note)

After “trading stock”, insert “or registered emissions units”.

37  Subsection 701‑35(4)

Omit “The *value of the”, substitute “If paragraph (2)(a) applies, the *value of the”.

38  At the end of section 701‑35 (after the note)

Add:

Setting value of registered emissions unit at tax‑neutral amount

             (5)  If paragraph (2)(b) applies, the *value of the *registered emissions unit at the end of the income year that ends, or, if section 701‑30 applies, of the income year that is taken by subsection (3) of that section to end, when the entity becomes a *subsidiary member is taken to be equal to:

                     (a)  if the unit was *held by the joining entity at the start of the income year—the value of the unit at the start of the income year; or

                     (b)  otherwise—the expenditure incurred by the joining entity in becoming the holder of the unit.

Note:          See also section 701A‑7 of the Income Tax (Transitional Provisions) Act 1997.

39  After subsection 701‑55(3)

Insert:

Registered emissions unit provisions

          (3A)  If Division 420 is to apply in relation to the asset, the expression means that the Division applies as if the asset were a *registered emissions unit at the start of the income year in which the particular time occurs, and its *value at that time were equal to the asset’s *tax cost setting amount.

39A  Subsection 701‑58(2)

After “(3)”, insert “(3A),”.

40  After subsection 705‑30(1)

Insert:

Registered emissions units

          (1A)  If an asset of the joining entity is a *registered emissions unit, the joining entity’s terminating value for the unit is equal to:

                     (a)  if the unit was *held by the joining entity at the start of the income year—the *value of the unit at the start of the income year; or

                     (b)  otherwise—the expenditure incurred by the joining entity in becoming the holder of the unit.

41  Section 705‑40 (heading)

Repeal the heading, substitute:

705‑40  Tax cost setting amount for reset cost base assets held on revenue account etc.

42  Subsection 705‑40(1)

After “*depreciating asset”, insert “, a *registered emissions unit”.

43  Subsection 705‑40(2)

After “*depreciating assets”, insert “, *registered emissions units”.

44  Paragraph 705‑40(3)(b)

After “*depreciating asset”, insert “, to a *registered emissions unit”.

45  Subsection 705‑57(1)

After “*depreciating assets”, insert “, *registered emissions units”.

46  Paragraph 705‑57(2)(c)

After “*depreciating asset”, insert “, a *registered emissions unit”.

47  Subsection 705‑163(1)

After “*depreciating assets”, insert “, *registered emissions units”.

48  Subsection 705‑240(1)

After “*depreciating assets”, insert “, *registered emissions units”.

49  Subsection 713‑225(4) (heading)

Repeal the heading, substitute:

Special character of partnership cost setting interest in partnership asset that is trading stock, a depreciating asset or a registered emissions unit

50  Subsection 713‑225(4)

Omit “or a *depreciating asset”, substitute “, a *depreciating asset or a *registered emissions unit”.

51  Subsection 715‑660(1) (after table item 1)

Insert:

2

A provision of Subdivision 420‑D that provides for a choice

Valuing *registered emissions units

51B  At the end of paragraph 715‑910(3)(b)

Add “and”.

51C  After paragraph 715‑910(3)(b)

Insert:

                     (c)  subsection 701‑35(5) (setting value of registered emissions unit at tax‑neutral amount);

51D  At the end of paragraph 715‑920(3)(b)

Add “and”.

51E  After paragraph 715‑920(3)(b)

Insert:

                     (c)  subsection 701‑35(5) (setting value of registered emissions unit at tax‑neutral amount);

52  Section 719‑165 (heading)

Repeal the heading, substitute:

719‑165  Trading stock value and registered emissions unit value not set for assets of eligible tier‑1 companies

53  At the end of section 719‑165

Add:

             (3)  Subsection 701‑35(5) (setting value of registered emissions unit at tax‑neutral amount) does not apply to the assets of the MEC joining entity if it is an *eligible tier‑1 company at the MEC joining time.

54  Subsection 995‑1(1)

Insert:

actual cost method of working out the *value of a *registered emissions unit has the meaning given by section 420‑53.

55  Subsection 995‑1(1)

Insert:

Australian carbon credit unit has the same meaning as in the Carbon Credits (Carbon Farming Initiative) Act 2011.

56  Subsection 995‑1(1)

Insert:

carbon unit has the same meaning as in the Clean Energy Act 2011.

57  Subsection 995‑1(1) (paragraph (b) of the definition of cost)

Omit “section 70‑55.”, substitute “section 70‑55; and”.

58  Subsection 995‑1(1) (at the end of the definition of cost, after the note)

Add:

                     (c)  cost of a *registered emissions unit has the meaning given by section 420‑60.

59  Subsection 995‑1(1)

Insert:

eligible no‑till seeder has the meaning given by section 385‑235.

60  Subsection 995‑1(1)

Insert:

FIFO cost method of working out the *value of a *registered emissions unit has the meaning given by section 420‑52.

61  Subsection 995‑1(1)

Insert:

free carbon unit has the same meaning as in the Clean Energy Act 2011.

62  Subsection 995‑1(1) (at the end of the definition of hold)

Add:

             ; and (c)  hold a *registered emissions unit has the meaning given by section 420‑12.

63  Subsection 995‑1(1)

Insert:

international emissions unit means:

                     (a)  a *Kyoto unit; or

                     (b)  a *prescribed international unit.

64  Subsection 995‑1(1)

Insert:

Kyoto unit has the same meaning as in the Australian National Registry of Emissions Units Act 2011.

65  Subsection 995‑1(1)

Insert:

market value method of working out the *value of a *registered emissions unit has the meaning given by section 420‑54.

66  Subsection 995‑1(1)

Insert:

prescribed international unit has the same meaning as in the Australian National Registry of Emissions Units Act 2011.

67  Subsection 995‑1(1)

Insert:

registered emissions unit has the meaning given by section 420‑10.

68  Subsection 995‑1(1) (definition of trading stock)

After “modified by”, insert “section 70‑12 of this Act and”.

69  Subsection 995‑1(1) (paragraph (b) of the definition of value)

Omit “70‑C.”, substitute “70‑C; and”.

70  Subsection 995‑1(1) (after paragraph (b) of the definition of value)

Insert:

                     (c)  the value of a *registered emissions unit has the meaning given by Subdivision 420‑D; and

71  Subsection 995‑1(1)

Insert:

vintage year of a *carbon unit has the same meaning as in the Clean Energy Act 2011.

The following amendments commence on 1 July 2015:

Schedule 2

74  Section 67‑23 (table item 24)

Repeal the item.

75  Subdivision 385‑J

Repeal the Subdivision.

76  Subsection 995‑1(1) (definition of eligible no‑till seeder)

Repeal the definition.

As at 20 February 2012 the amendments are not incorporated in this compilation.

Note 18

Clean Energy (Household Assistance Amendments) Act 2011
(No. 141, 2011)

The following amendments commence on 14 May 2012:

Schedule 10

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

Add:

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

52‑150

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

52‑150

3  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

4  At the end of subsection 52‑10(1) (before the note)

Add:

             ; or (zb)  clean energy payments under the Social Security Act 1991.

5  Before subsection 52‑10(2)

Insert:

          (1L)  Clean energy payments under the Social Security Act 1991 are exempt from income tax.

6  Section 52‑15 (at the end of the cell at table item 1, column headed “the supplementary amount is the total of:”)

Add:

; and (e) so much of the payment as is included by way of clean energy supplement

7  Section 52‑15 (at the end of the cell at table item 2, column headed “the supplementary amount is the total of:”)

Add:

; and (g) so much of the payment as is included by way of clean energy supplement

8  Section 52‑15 (at the end of the cell at table item 3, column headed “the supplementary amount is the total of:”)

Add:

; and (f) so much of the payment as is included by way of clean energy supplement

9  Section 52‑15 (at the end of the cell at table item 4, column headed “the supplementary amount is the total of:”)

Add:

; and (e) so much of the payment as is included by way of clean energy supplement

10  Section 52‑40 (after table item 4)

Insert:

4A

Clean energy payment

Part 2.18A

Not applicable

Not applicable

11  After paragraph 52‑65(1)(a)

Insert:

                     (b)  clean energy payments; or

12  Before subsection 52‑65(2)

Insert:

          (1G)  Clean energy payments under the Veterans’ Entitlements Act 1986 are exempt from income tax.

13  At the end of section 52‑70

Add:

             ; and (e)  so much of the payment as is included by way of clean energy supplement.

14  Section 52‑75 (after table item 3)

Insert:

3A

Clean energy payment

Part IIIE

Not applicable

15  Section 52‑114 (at the end of the table)

Add:

22

Clean energy payment (sections 83A, 209A and 238A and Part 5A of Chapter 11)

Exempt

Not applicable

16  Subsection 52‑150(1)

Omit “or single income family bonus”, substitute “, single income family bonus, clean energy advance or single income family supplement”.

17  Section 53‑10 (after table item 1)

Insert:

1A

Clean energy advance

The Farm Household Support Act 1992

None

As at 20 February 2012 the amendments are not incorporated in this compilation.

Note 19

Clean Energy (Tax Laws Amendments) Act 2011 (No. 159, 2011)

The following amendments commence on 1 July 2012:

Schedule 3

17  Section 13‑1 (table item headed “low income earner”)

Omit “aged beneficiary”, substitute “aged or pensioner beneficiary”.

18  Section 13‑1 (table item headed “low income earner”)

After “aged person”, insert “or pensioner”.

19  Section 13‑1 (table item headed “social security and other benefit payments”)

Omit “160AAA(2)”, substitute “160AAAA”.

20  Subsection 63‑10(1) (table items 5 and 10, column headed “Tax offset”)

After “aged persons”, insert “and pensioners”.

21  Subsection 63‑10(1) (table item 15, column headed “Tax offset”)

Omit “pensions”, substitute “benefits”.

As at 20 February 2012 the amendments are not incorporated in this compilation.


Table A

Application, saving or transitional provisions

Taxation Laws Amendment (Private Health Insurance Incentives) Act 1997 (No. 56, 1997)

Schedule 2 

10  Application

(1)       The amendments of the Income Tax Assessment Act 1936 apply to assessments in respect of income for the 1997‑98 year of income and all later years of income.

(2)       The amendments of the Income Tax Assessment Act 1997 apply to assessments in respect of income for the 1997‑98 income year and all later income years.

 

Taxation Laws Amendment Act (No. 2) 1997 (No. 95, 1997)

Schedule 3 

18  Application of amendments

(1)       The amendment made by item 15 of this Schedule applies in relation to the income year for the loss company in which 1 July 1997 occurs and later income years.

(2)       The amendment made by item 16 of this Schedule applies in relation to the income year for the income company in which 1 July 1997 occurs and later income years.

(3)       The amendment made by item 17 of this Schedule applies to assessments for the income year in which 1 July 1997 occurs and later income years.

 

Tax Law Improvement Act 1997 (No. 121, 1997)

4  Application of amendments

An amendment made by an item in a Schedule (except Schedule 1) applies to assessments for the 1997‑98 income year and later income years, unless otherwise indicated in that Schedule.

Schedule 5 

24  Application of amendment of subsection 165‑60(4)

The amendment made by item 23 applies for assessments for the 1998‑99 income year and later income years.

 

Franchise Fees Windfall Tax (Consequential Amendments) Act 1997
(No. 134, 1997)

4  Application of amendments

(2)       The amendments of the Income Tax Assessment Act 1997 apply to the 1997‑98 year of income and to all later years of income.

 

Taxation Laws Amendment Act (No. 3) 1997 (No. 147, 1997)

Schedule 6 

13  Application

The amendments made by this Part apply in respect of years of income in which proceeds are derived as a result of firearms surrender arrangements.

Note:       Firearms surrender arrangements has the meaning given by subsection 6(1) of the Income Tax Assessment Act 1936.

Schedule 15 

13  Application

The amendments made by this Part apply to assessments for the 1997/98 income year and later income years.

 

Taxation Laws Amendment Act (No. 4) 1997 (No. 174, 1997)

Schedule 6 

23  Application

(1)       The amendments made by Part 1 of this Schedule apply to assessments for the 1997‑98 income year and later income years.

Schedule 9 

30  Application

(1)       The amendments made by Part 1 of this Schedule apply to assessments for the 1997‑98 income year and later income years.

 

Farm Household Support Amendment (Restart and Exceptional Circumstances) Act 1997 (No. 179, 1997)

Schedule 3

4  References in Acts to exceptional circumstances relief payment also cover drought relief payment

A reference in the amended FHS Act, or in another Act that is amended by this Act, to exceptional circumstances relief payment paid to a person has effect, after the commencement of this Act, as if it included a reference to drought relief payment paid to a person under the Farm Household Support Act 1992.

 

Social Security Legislation Amendment (Parenting and Other Measures)
Act 1997
(No. 197, 1997)

Schedule 1 

343  Saving: new terminology includes old payment types

(1)       Where a term set out in the second column of the table below is used in the Income Tax Assessment Act 1997, the Income Tax Assessment Act 1936 or the Income Tax Rates Act 1986, it is to be interpreted as including a reference to the corresponding term or terms set out in the third column of the table:

 

Terminology Table

Item

Term used

Term included

1

parenting payment

parenting allowance

sole parent pension

2

pension PP (single)

sole parent pension

3

PP (partnered)

parenting allowance

4

benefit PP (partnered)

benefit parenting allowance

5

non‑benefit PP (partnered)

non‑benefit parenting allowance

(2)       Subitem (1) does not apply in relation to section 159J of the Income Tax Assessment Act 1936.

 

Taxation Laws Amendment Act (No. 1) 1998 (No. 16, 1998)

Schedule 3 

20  Division 396 also applies to certain other infrastructure borrowings

(1)       Division 396 of the Income Tax Assessment Act 1997 applies to the following as if they were land transport facilities:

                     (a)  an infrastructure facility (within the meaning of section 93L of the Development Allowance Authority Act 1992) where an application had been made for a certificate under Part 3 of Chapter 3 of that Act on or before 14 February 1997 in respect of borrowings in connection with the facility;

                     (b)  an infrastructure facility (within the meaning of section 93L of the Development Allowance Authority Act 1992) that is an extension of a an infrastructure facility in respect of which a certificate under Part 3 of Chapter 3 of that Act is in force.

(2)       That Division also applies to facilities that are related facilities (within the meaning of section 93M of the Development Allowance Authority Act 1992) in relation to facilities covered by subsection (1) as if they were related facilities to land transport facilities.

21  Certain projects taken to be approved

(1)       This item applies to an infrastructure facility or a related facility (within the meaning of section 93L or 93M of the Development Allowance Authority Act 1992) if:

                     (a)  an application had been made for a certificate under Part 3 of Chapter 3 of that Act on or before 14 February 1997 in respect of borrowings in connection with the facility; and

                     (b)  a certificate had been issued under that Act in respect of those borrowings but the certificate is not effective because of the operation of the Taxation Laws Amendment (Infrastructure Borrowings) Act 1997; and

                     (c)  the Minister for Transport and Regional Development determines, by written notice, that this item applies to the facility.

(2)       A determination is to include all of the matters that would be set out if the determination were a decision to approve a borrower and a project under section 396‑70 of the Income Tax Assessment Act 1997.

(3)       The income years specified in the determination must not include an income year that starts more than 5 years after the first borrowing is made in respect of the project.

(4)       The Minister for Transport and Regional Development must not specify in the determination a maximum amount of tax offsets for the project for an income year that would cause the maximum amount referred to in section 396‑20 of the Income Tax Assessment Act 1997 for that income year to be exceeded.

(5)       If this item applies to an infrastructure facility:

                     (a)  Division 396 of the Income Tax Assessment Act 1997 applies to the facility as if it were a land transport facility; and

                     (b)  the Minister for Transport and Regional Development is taken to have made a decision under section 396‑70 of the Income Tax Assessment Act 1997 to approve the borrower and the project specified in the determination.

22  Provision of information by Development Allowance Authority

                   Section 93ZF of the Development Allowance Authority Act 1992 applies as if paragraph (d) of that section included a reference to this Part of this Schedule and to Division 396 of the Income Tax Assessment Act 1997.

Schedule 4 

2  Application

The amendment made by item 1 applies for the 1997‑98 income year and later income years.

Schedule 5 

44  Application

The amendments made by this Schedule apply to assessments for the 1997‑98 income year and later income years.

Schedule 10 

19  Application

The amendments made by this Part apply to assessments for the 1997‑98 income year and later income years.

Schedule 11 

123  Application

The amendments made by this Schedule apply to assessments for the 1997‑98 income year and later income years.

 

Commonwealth Places (Consequential Amendments) Act 1998
(No. 23, 1998)

4  Application of amendments

(2)       The amendments of the Income Tax Assessment Act 1997 apply to the 1997‑98 year of income and to all later years of income.

 

Taxation Laws (Technical Amendments) Act 1998 (No. 41, 1998)

Schedule 3 

7  Application

(2)       The amendments made by Part 2 apply to assessments for the 1997‑98 income year and later income years.

Schedule 4 

5  Application

The amendments made by this Schedule apply to assessments for the 1997‑98 income year and later income years.

 

Tax Law Improvement Act (No. 1) 1998 (No. 46, 1998)

4  Application of amendments

                   An amendment made by an item in a Schedule (except an item in Schedule 1 or in Part 1 of any of Schedules 2 to 8) applies to assessments for the 1998‑99 income year and later income years, unless otherwise indicated in the Schedule in which the item appears.

Schedule 9 

8  Application

The amendments made by this Schedule apply to assessments for the 1997‑98 income year and later income years.

 

Taxation Laws Amendment Act (No. 3) 1998 (No. 47, 1998)

Schedule 1 

5  Application

(1)       The amendments made by items 1 and 3 apply in relation to expenses incurred in the 1997‑98 income year.

(2)       The amendments made by items 2 and 4 do not affect the application of the Income Tax Assessment Act 1997 in relation to expenses incurred in the 1997‑98 income year.

Schedule 3 

16  Application

The amendments of the Income Tax Assessment Act 1997 made by this Schedule apply in relation to income derived on or after 1 July 1997.

Schedule 5 

4  Application

The amendments made by this Schedule apply to assessments for the 1997‑98 income year and later income years.

Schedule 9 

14  Application

The amendments made by this Schedule apply to assessments for the 1998‑99 income year and later income years.

15  Transitional—lower tax offset for the 1998‑99 income year

(1)       For the 1998‑99 income year, the rate of tax offset specified in subsections 61‑55(2) and 61‑65(2) of the Income Tax Assessment Act 1997 is taken to be 7.5%; not 15%.

(2)       Accordingly, for that income year, the maximum amount of tax offset specified in subsections 61‑55(3) and 61‑65(3) of that Act is taken to be $225; not $450.

(3)       In working out your provisional tax for the 1999‑2000 income year under Division 3 of Part VI of the Income Tax Assessment Act 1936, work out your tax offset under Subdivision 61‑A of the Income Tax Assessment Act 1997 for the 1998‑99 income year disregarding subitems (1) and (2) of this item.

16  Transitional—provisional tax for the 1998‑99 income year

In working out your provisional tax for the 1998‑99 income year under Division 3 of Part VI of the Income Tax Assessment Act 1936, it is to be assumed that:

                     (a)  Subdivision 61‑A of the Income Tax Assessment Act 1997 had applied to your assessment for the 1997‑98 income year; and

                     (b)  subitems 15(1) and (2) had applied for that income year (as well as the 1998‑99 income year); and

                     (c)  any tax offset under that Subdivision were worked out for the 1998‑99 income year disregarding Steps 2 and 4 of the method statement in subsection 61‑55(2) of that Act (which deal with certain superannuation contributions).

 

Taxation Laws Amendment (Company Law Review) Act 1998
(No. 63, 1998)

Schedule 6 

18  Application

(1)       The amendments made by Part 1 of this Schedule apply to things done after the commencement of this item.

(2)       The amendments made by Part 2 of this Schedule apply to things done after the commencement of this item where the relevant company has shares with no par value.

 

Taxation Laws Amendment (Landcare and Water Facility Tax Offset) Act 1998 (No. 91, 1998)

Schedule 1 

19  Application

The amendments made by this Schedule apply to assessments for the 1997‑98 income year and later income years.

 

Social Security and Veterans’ Affairs Legislation Amendment (Budget and Other Measures) Act 1998 (No. 93, 1998)

Schedule 7 

45  Saving: new terminology includes old payment types

Where a term set out in the second column of the table below is used in the Income Tax Assessment Act 1997, it is to be interpreted as including a reference to the corresponding term set out in the third column of the table:

 

Terminology Table

Item

Term in ITAA 1997

Term included

1

family allowance

family payment

2

family allowance advance

family payment advance

 

Primary Industries and Energy Legislation Amendment Act (No. 1) 1998
(No. 102, 1998)

Schedule 2 

11  Application

            Items 3 to 10 (inclusive) apply in relation to the 1997‑98 income year and all subsequent income years.

 

Taxation Laws Amendment (Private Health Insurance) Act 1998
(No. 128, 1998)

Schedule 2 

16  Application

            The amendments of the Income Tax Assessment Act 1936 made by this Schedule apply to assessments in respect of income for the 1998‑99 income year and all later income years.

 

Taxation Laws Amendment Act (No. 3) 1999 (No. 11, 1999)

Schedule 1 

404  Application

(1)       This item applies to amendments made by items 4, 5, 28, 30, 31, 32, 33, 34, 35, 36, 52, 76, 116, 122, 123, 124, 125, 126, 129, 144, 145, 146, 147, 150, 155, 157, 159, 160, 176, 177, 181, 182, 183, 184, 190, 205, 206, 207, 208, 209, 210, 218, 219, 220, 229, 230, 231, 243, 244, 253, 279, 299, 300, 302, 321, 336, 342, 343, 365, 367, 370, 374, 386 and 395.

(2)       The amendments apply in relation to credits and payments to which section 8AAZL of the Taxation Administration Act 1953 applies.

 

Assistance for Carers Legislation Amendment Act 1999 (No. 13, 1999)

Schedule 1 

128  Application

The amendments made by this Part apply to assessments for the 1997‑98 income year and later years.

133  Application

The amendments made by this Part apply to assessments for the 1998‑99 income year.

137  Application

The amendments made by this Part apply to assessments for the 1999‑2000 income year and later years.

Schedule 2 

63  Application

The amendments made by this Part apply to assessments for the 1999‑2000 income year and later income years.

64  Continuation of references to old allowance and benefit

(1)       The Income Tax Assessment Act 1997 has effect after the commencement of this Part as if:

                     (a)  the entry in the table in section 11‑15 of that Act, under the heading “social security or like payments”, relating to domiciliary nursing care benefit had not been omitted; and

                     (b)  the references in item 3A.1 of the table in section 52‑10, and item 3A of the table in section 52‑40, of that Act to carer allowance included references to child disability allowance within the meaning of the Social Security Act 1991 as previously in force; and

                     (c)  item 2 of the table in section 53‑10 of the Income Tax Assessment Act 1997 had not been repealed by this Act and had referred to Part VB of the National Health Act 1953 as previously in force.

(3)       In this item:

as previously in force means as in force immediately before the commencement of this Part.

 

Taxation Laws Amendment Act (No. 1) 1999 (No. 16, 1999)

Schedule 3 

12  Application

(3)       The repeals made by items 9, 10 and 11 apply in relation to expenditure to the extent to which it is incurred in respect of the provision of car parking facilities for a car on a day on or after 1 July 1997.

Schedule 4 

2  Application

The amendment made by this Schedule applies to assessments for the 1997‑98 income year and later income years.

Schedule 7 

14  Application

(1)       The amendments made by this Part apply to assessments for the 1998‑99 income year and later income years.

(2)       However, the amendments made by items 12 and 13 do not apply to expenditure incurred before the day on which the Bill that became the Taxation Laws Amendment Act (No. 1) 1999 was introduced into the House of Representatives.

 

Taxation Laws Amendment (Software Depreciation) Act 1999
(No. 39, 1999)

Schedule 1

21  Application

The amendments made by this Schedule apply to expenditure on software after 10 am by legal time in the Australian Capital Territory on 11 May 1998.

22  Transitional—projects commenced before 11 May 1998

You can deduct expenditure on software that you incur before 1 July 1999 and that you could otherwise deduct under Subdivision 46‑B or 46‑D of the Income Tax Assessment Act 1997 if, at or before 10 am by legal time in the Australian Capital Territory on 11 May 1998:

                     (a)  you entered into a contract to acquire the software; or

                     (b)  you commenced the development of the software for your own use; or

                     (c)  you commissioned another entity to develop the software for your own use;

to the extent that you use, or intend to use, the software for the purpose of producing assessable income.

Note:       Under this item you can deduct the expenditure for the year in which you incur it, instead of having to write it off gradually under Subdivision 46‑B or 46‑D.

23  Transitional—backdating software pool to 11 May 1998

When making a choice under section 46‑80 of the Income Tax Assessment Act 1997 for the first income year beginning after 11 May 1998, you may elect that the choice be treated as also applying to any expenditure on software incurred after 10 am by legal time in the Australian Capital Territory on 11 May 1998 but before that income year begins.

Note 1:    You will get section 46‑90 deductions for that expenditure one year earlier than any deductions you will get for expenditure incurred in that later income year. This is because the timing of section 46‑90 deductions depends on the income year in which you incurred the expenditure (not on when you made the choice).

Note 2:    If it were not for this item, the choice could not apply to expenditure incurred before the beginning of the income year in which the choice is made: see paragraph 46‑85(b).

24  Transitional—revoking software pool choice

(1)       When lodging your return for the second income year beginning after 11 May 1998, you may revoke a previous choice that you made to create a software pool under section 46‑80 of the Income Tax Assessment Act 1997.

(2)       You may do so whether or not you also made an election under item 23 of this Schedule when you made that choice.

(3)       If you revoke the choice, no expenditure on software for that second income year or any later income year goes into your software pool. But any expenditure from before that second income year remains in your software pool unaffected by the revocation.

(4)       You can never revoke the revocation, or make a fresh choice under section 46‑80.

 

Taxation Laws Amendment Act (No. 6) 1999 (No. 54, 1999)

Schedule 1 

36  Application

The amendments made by this Schedule apply to spectrum licences obtained on or after 11 March 1998.

Schedule 2 

16  Application

The amendments made by this Schedule apply to assessments for the 1997‑98 income year and later income years.

Schedule 5 

10  Application of amendments

The amendments made by this Part apply to assessments for the 1998‑99 income year and later income years.

Schedule 7 

3  Application of amendments

The amendments made by this Schedule apply to assessments for the 1998‑99 income year and later income years.

 

A New Tax System (Income Tax Laws Amendment) Act 1999 (No. 60, 1999)

Schedule 2 

7  Application

The amendments made by this Part apply to assessments for the 1999‑2000 income year and later income years.

 

A New Tax System (Personal Income Tax Cuts) Act 1999 (No. 69, 1999)

Schedule 3 

1  Application

(1)       Subject to subitem (2), the amendments made by this Act (except items 1, 2, 4, 6, 7 and 9 of Schedule 1) apply to assessments for the 2000‑2001 income year and later income years.

 

A New Tax System (Closely Held Trusts) Act 1999 (No. 70, 1999)

Schedule 2 

14  Application

The amendment made by this Part applies to assessments for the income year in which 13 August 1998 occurred, and all later income years.

 

A New Tax System (Family Assistance) (Consequential and Related Matters) Act (No. 2) 1999 (No. 83, 1999)

Schedule 10

68  Application

(1)       Subject to this item, the amendments made by this Schedule apply to assessments in relation to the 2000‑2001 year of income and later years of income.

69  Saving provision—Income Tax Assessment Act 1997

(1)       Despite the amendments of the Income Tax Assessment Act 1997 made by this Schedule, that Act as in force immediately before the commencement of item 1 of this Schedule continues to apply, in respect of:

                     (a)  an eligible family payment; or

                     (b)  an exceptional circumstances relief payment within the meaning of the Farm Household Support Act 1992;

received during the 2000‑2001 year of income or a later year of income, as if those amendments had not been made.

(2)       In this item:

eligible family payment means any of the following payments:

                     (a)  family allowance;

                     (b)  family allowance advance;

                     (c)  family tax payment;

                     (d)  maternity allowance;

                     (e)  maternity immunisation allowance;

                      (f)  parenting payment (non‑benefit PP (partnered));

                     (g)  so much of parenting payment (benefit PP (partnered)) as is included by way of provisional rate of parenting payment up to the maximum basic component of the parenting payment worked out using the method statement in point 1068B‑A3;

within the meaning of the Social Security Act 1991 as in force immediately before the commencement of item 1 of this Schedule.

 

Taxation Laws Amendment Act (No. 2) 1999 (No. 93, 1999)

Schedule 1 

39  Application

(1)       Subject to this item, the amendments made by this Schedule apply in relation to transactions entered into after 2 July 1998.

Schedule 3 

33  Application

(1)       The amendments made by this Schedule other than items 8, 9, 10 and 11 apply where the transition time or acquisition time, as the case may be, referred to in Division 58 inserted in the Income Tax Assessment Act 1997 by item 7 is a time on or after 4 August 1997.

(2)       The amendments made by items 8, 9, 10 and 11 apply to assessments for the 1998‑99 income year and later income years.

 

Taxation Laws Amendment Act (No. 4) 1999 (No. 94, 1999)

Schedule 1 

30  Application of amendments

The amendments made by items 8, 10 and 11 apply to gifts made on or after the day on which this Act receives the Royal Assent.

Schedule 2 

3  Exemption of grants paid from fund

Any amount of ordinary income or statutory income that is paid directly to an entity by way of grant to the entity from the Katherine District Business Re‑establishment Fund is exempt from tax under the Income Tax Assessment Act 1997.

Note:       This exemption does not apply to amounts paid to a third party.

4  Amounts are excluded exempt income

Income that is exempt under item 3 is excluded exempt income for the purposes of the Income Tax Assessment Act 1997.

Note:       Subsection 36‑20(3) of the Income Tax Assessment Act 1997 contains the general definition of excluded exempt income.

6  Application

This Part applies only in relation to assessments for the 1997‑98 income year.

Schedule 3 

6  Application

The repeals made by items 4 and 5 apply to assessments for the 1998‑99 income year and later income years.

32  Application

The amendments made by this Part apply to a public entity if the test time (within the meaning of Division 149 of the Income Tax Assessment Act 1997) is on or after 30 June 1999.

42  Application

The amendments made by this Part apply to CGT assets so far as they are held on or after 11 March 1999.

Schedule 5 

35  Application of amendments

Subject to item 37, the amendments made by this Schedule apply to assessments for the 1998‑99 income year and all later income years.

36  Transitional—effect of Subdivision 118‑F and Division 123 of the Income Tax Assessment Act 1997

Subdivision 118‑F, and Division 123, of the Income Tax Assessment Act 1997 apply to a person (with such modifications as are necessary) for the purpose of working out whether the person has a net capital gain for the 1997‑98 income year and, if so, the amount of that net capital gain if:

                     (a)  a CGT event happened in relation to land or a building owned by the person; and

                     (b)  the CGT event happened after 13 August 1998 and before the start of the person’s 1998‑99 income year; and

                     (c)  if the CGT event had happened in the person’s 1998‑99 income year, the land or building would have been an active asset because of subsection 123‑80(2) of the Income Tax Assessment Act 1997.

Note:       This provision is for taxpayers who have a substituted accounting period and are late balancers and who would not otherwise be able to take advantage of the extension to the definition of active asset in section 123‑80 of the Income Tax Assessment Act 1997 made by this Act.

37  Application of item 36

Item 36 applies to assessments for the 1997‑98 income year.

Schedule 6 

73  Application

The amendments made by this Schedule apply to assessments for the 1998‑99 income year and all later income years.

 

Further 1998 Budget Measures Legislation Amendment (Social Security) Act 1999 (No. 152, 1999)

Schedule 4

19  Application

The amendments made by this Part apply to assessments for the 1999‑2000 income year and later income years.

 

New Business Tax System (Capital Allowances) Act 1999 (No. 164, 1999)

Schedule 1 

15  Application of amendments

(1)       The amendments made by items 1 to 13 apply to a balancing adjustment event happening after 11.45 am, by legal time in the Australian Capital Territory, on 21 September 1999.

(2)       The amendment made by item 14 applies to a CGT event happening after 11.45 am, by legal time in the Australian Capital Territory, on 21 September 1999.

(3)       The amendment made by item 14 also applies to a CGT event happening at or before 11.45 am, by legal time in the Australian Capital Territory, on 21 September 1999, if:

                     (a)  the event is CGT event A1 (disposal of a CGT asset); and

                     (b)  the time of the event is when you entered into the contract for the disposal of the CGT asset; and

                     (c)  the change of ownership constituting the disposal occurred after 11.45 am, by legal time in the Australian Capital Territory, on 21 September 1999.

Schedule 2 

23  Application of amendments

(1)       The amendments made by this Schedule (other than by items 17 and 18) apply to assessments for the income year in which 21 September 1999 occurred and later income years.

(2)       The amendment made by item 17 applies to arrangements entered into after 27 February 1998.

(3)       The amendment made by item 18 applies to debts that are terminated after 27 February 1998.

Schedule 3 

14  Application of amendments

The amendments made by this Schedule apply to plant if:

                     (a)  you became its owner or quasi‑owner under a contract entered into after 11.45 am, by legal time in the Australian Capital Territory, on 21 September 1999; or

                     (b)  you constructed it and the construction started after that time; or

                     (c)  you acquired it in some other way after that time.

Schedule 4 

12  Application of amendments

(1)       The amendments made by this Schedule relating to IRUs apply to expenditure on IRUs incurred after 11.45 am, by legal time in the Australian Capital Territory, on 21 September 1999.

(2)       The amendments made by this Schedule relating to part disposals of a cable system apply to the granting of IRUs over the system under contracts entered into after 11.45 am, by legal time in the Australian Capital Territory, on 21 September 1999.

(3)       Those amendments do not apply to an international telecommunications submarine cable system, or an IRU over the system, if the system had been used for telecommunications purposes at or before 11.45 am, by legal time in the Australian Capital Territory, on 21 September 1999.

Schedule 5 

6  Application of amendments

The amendments made by this Schedule apply to plant if:

                     (a)  you became its owner or quasi‑owner under a contract entered into after 11.45 am, by legal time in the Australian Capital Territory, on 21 September 1999; or

                     (b)  you constructed it and the construction started after that time; or

                     (c)  you acquired it in some other way after that time.

 

New Business Tax System (Capital Gains) Act 1999 (No. 165, 1999)

Schedule 1 

61  Application of amendments

            The amendments made by this Schedule apply to assessments for the income year including 21 September 1999 and all later income years, but only for CGT events that happen after 11.45 am, by legal time in the Australian Capital Territory, on 21 September 1999.

Note:       The 15‑year exemption in Subdivision 152‑B of the Income Tax Assessment Act 1997, as inserted by this Division, will effectively only apply to CGT events that happen on or after 20 September 2000, since the 15‑year exemption is only relevant to CGT assets acquired on or after 20 September 1985.

62  Transitional—old CGT retirement exemption limit carries over

If an individual’s CGT retirement exemption limit was reduced by one or more amounts under:

                     (a)  section 118‑435 of the Income Tax Assessment Act 1997; or

                     (b)  section 160ZZPZN of the Income Tax Assessment Act 1936;

or both, then the individual’s CGT retirement exemption limit under Subdivision 152‑D of that Act (as inserted by this Schedule) is taken to have been reduced by the total of all those amounts at 11.45 am, by legal time in the Australian Capital Territory, on 21 September 1999.

Note:       This could result in the individual’s new limit being reduced to nil at that time, if he or she has already used it up under those old provisions.

Schedule 2 

7  Application of amendments

The amendments made by this Schedule apply to CGT events happening on or after the day on which this Act receives the Royal Assent.

Schedule 3 

18  Application of amendments

The amendments made by this Schedule apply to the issue or allotment of venture capital equity in a resident investment vehicle on or after the day on which this Act receives the Royal Assent.

 

New Business Tax System (Integrity and Other Measures) Act 1999
(No. 169, 1999)

Schedule 1 

18  Application of amendments

The amendments made by this Schedule apply to assessments for the income year in which 22 February 1999 occurs and later income years.

Schedule 2 

5  Application of amendments

The amendments made by this Schedule apply to trigger events that happen on or after 22 February 1999.

Schedule 3 

7  Application of amendments

The amendments made by this Schedule apply to assessments for the 1999‑2000 income year and later income years.

Schedule 4 

19  Application

(1)       The amendments made by this Schedule apply to CGT events happening on or after 21 October 1999.

(2)       The amendment made by item 2 is to be disregarded for the purposes of any application of section 110‑55 of the Income Tax Assessment Act 1997 as previously in force, or any application of subsection 160ZK(1) of the Income Tax Assessment Act 1936, as a result of a CGT event or disposal that occurred before 21 October 1999.

(3)       The amendment made by item 3 is to be disregarded for the purposes of any application of section 110‑60 of the Income Tax Assessment Act 1997 as previously in force, or any application of subsection 160ZK(3) of the Income Tax Assessment Act 1936, as a result of a CGT event or disposal that occurred before 21 October 1999.

Schedule 6 

16  Application and saving

The amendments made by this Schedule, except in so far as they relate to changes in the ownership or control of a company that has an unrealised net loss, apply to net capital losses, tax losses or deductions claimed in a return for a year of income ending after 21 September 1999.

Schedule 7 

12  Application

(1)       The amendments made by Division 1 of Part 1 and by Part 2 apply in relation to:

                     (a)  expenditure incurred by a taxpayer after 11.45 am (by legal time in the Australian Capital Territory) on 21 September 1999; and

                     (b)  the taxpayer’s assessments for the year of income including that day and for later years of income.

Schedule 8 

10  Application

The amendments made by this Schedule apply to the calculation of the cost base of a CGT asset for a CGT event occurring after 11.45 am (by legal time in the Australian Capital Territory) on 21 September 1999.

Schedule 9 

14  Application and transitional provisions

(1)       The amendments of Divisions 100, 102, 104 and 109 of the Income Tax Assessment Act 1997 made by this Part, and Division 115 of that Act, apply to assessments for the income year including 21 September 1999 and for later income years.

(2)       The amendments of sections 110‑25 and 114‑5 of the Income Tax Assessment Act 1997 made by this Part apply to the calculation of a cost base of a CGT asset for a CGT event happening after 11.45 am (by legal time in the Australian Capital Territory) on 21 September 1999.

31  Application

The amendments of the Income Tax Assessment Act 1997 made by this Division apply to assessments for the income year including 21 September 1999 and later income years.

33  Application

The amendment of the Income Tax Assessment Act 1997 made by this Division applies to assessments for the income year including 21 September 1999 and later income years.

 

A New Tax System (Pay As You Go) Act 1999 (No. 178, 1999)

Schedule 2

92  Application of amendments

The amendments made by this Part apply in relation to amounts that are due to be paid on or after 1 July 1999.

93  Transitional—pre‑1 July 1999 debts

(1)       This item applies to an amount (including an amount of penalty or interest) that a person owes to the Commonwealth directly under a taxation law (including a law that has been repealed or amended) and that became payable at any time before 1 July 1999, if all or some of the amount (the unpaid debt) remains unpaid at the beginning of 1 July 1999.

(2)       The person is liable, and is taken to have been liable, to pay general interest charge on the unpaid debt for each day in the period that:

                     (a)  started at the beginning of the day by which the amount was due to be paid; and

                     (b)  finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid:

                              (i)  the unpaid debt;

                             (ii)  general interest charge on any of the unpaid debt.

(3)       The general interest charge is worked out under Division 1 of Part IIA of the Taxation Administration Act 1953.

(4)       For the purposes of this item, the general interest charge rate for a day before 1 July 1999 is taken to have been 12.72% divided by the number of days in the calendar year that the day was in.

(5)       If this item results in a person being liable, or being taken to have been liable, to pay both general interest charge and some other penalty or interest in respect of the same debt, the Commissioner must remit either that general interest charge or that other penalty or interest (the Commissioner chooses which).

 

A New Tax System (Tax Administration) Act 1999 (No. 179, 1999)

Schedule 7

18  Application

(1)       The amendments of Subdivisions 30‑A and 30‑D of the Income Tax Assessment Act 1997 made by this Schedule apply in relation to gifts made on or after 1 July 2000.

(2)       Section 30‑228 of the Income Tax Assessment Act 1997 applies to gifts made on or after 1 July 2000.

(3)       The amendments of Division 50 of the Income Tax Assessment Act 1997 made by this Schedule apply in relation to ordinary income and statutory income for a period starting on or after 1 July 2000.

Schedule 8

16  Application

Subdivision 50‑A of the Income Tax Assessment Act 1997 as amended by this Schedule applies in relation to ordinary income and statutory income for a period starting on or after 1 July 2000.

Schedule 16

37  Application

The amendments made by this Schedule apply to the 2000‑2001 year of income and later years of income.

 

Taxation Laws Amendment Act (No. 2) 2000 (No. 58, 2000)

Schedule 2

4  Application

(2)       The amendments made by items 2 and 3 apply to the 1997‑98 year of income and later years of income.

Schedule 4

6  Application

The amendments made by this Schedule apply to losses, outgoings or expenditure incurred in the 1999‑2000 income year or a later income year.

Schedule 5

6  Application

                   The amendments made by this Schedule apply to losses, outgoings or expenditure incurred in the 1999‑2000 income year or a later income year.

Schedule 6

34  Application

The amendments made by this Schedule apply to gifts made on or after 1 July 1999.

Schedule 10

17  Application

(3)       The amendments made by items 12 and 13 apply:

                     (a)  so far as the amendments affect Subdivision 165‑A (including as modified by Subdivision 166‑A) of the Income Tax Assessment Act 1997—where the loss year mentioned in that Subdivision is the 1996‑97 income year or any later income year and the income year mentioned in that Subdivision is the 1997‑98 income year or any later income year; and

                     (b)  so far as the amendments affect Subdivision 165‑B (including as modified by Subdivision 166‑B) of the Income Tax Assessment Act 1997—where the income year mentioned in that Subdivision is the 1997‑98 income year or any later income year; and

                     (c)  so far as the amendments affect Subdivision 165‑CA of the Income Tax Assessment Act 1997—where the earlier income year mentioned in that Subdivision is the 1996‑97 income year or any later income year and the current income year mentioned in that Subdivision is the 1998‑99 income year or any later income year; and

                     (d)  so far as the amendments affect Subdivision 165‑CB (including as modified by Subdivision 166‑B) of the Income Tax Assessment Act 1997—where the income year mentioned in that Subdivision is the 1998‑99 income year or any later income year; and

                     (e)  so far as the amendments affect Subdivision 165‑C (including as modified by Subdivision 166‑C) of the Income Tax Assessment Act 1997—where the debt mentioned in that Subdivision was incurred in the 1996‑97 income year or any later income year and the current year mentioned in that Subdivision is the 1998‑99 income year or any later income year.

(4)       The amendments made by item 14 apply:

                     (a)  so far as the amendments affect Subdivision 175‑A of the Income Tax Assessment Act 1997—where the loss year mentioned in that Subdivision is the 1996‑97 income year or any later income year and the income year mentioned in that Subdivision is the 1997‑98 income year or any later income year; and

                     (b)  so far as the amendments affect Subdivision 175‑B of the Income Tax Assessment Act 1997—where the income year mentioned in that Subdivision is the 1997‑98 income year or any later income year; and

                     (c)  so far as the amendments affect Subdivision 175‑CA of the Income Tax Assessment Act 1997—where the earlier income year mentioned in that Subdivision is the 1996‑97 income year or any later income year and the income year mentioned in that Subdivision is the 1998‑99 income year or any later income year; and

                     (d)  so far as the amendments affect Subdivision 175‑CB of the Income Tax Assessment Act 1997—where the income year mentioned in that Subdivision is the 1998‑99 income year or any later income year; and

                     (e)  so far as the amendments affect Subdivision 175‑C of the Income Tax Assessment Act 1997—where the debt mentioned in that Subdivision was incurred in the 1996‑97 income year or any later income year and the income year mentioned in that Subdivision is the 1998‑99 income year or any later income year.

(5)       Subdivision 180‑A of the Income Tax Assessment Act 1997 as inserted by item 15 of this Schedule applies where:

                     (a)  the loss year mentioned in paragraph 180‑5(2)(a) is the 1996‑97 income year or any later income year and the income year for which that paragraph is being applied is the 1997‑98 income year or any later income year; or

                     (b)  the income year for which subparagraph 180‑5(2)(b)(i) is being applied is the 1997‑98 income year or any later income year; or

                     (c)  the income year for which subparagraph 180‑5(2)(b)(ii) is being applied is the 1998‑99 income year or any later income year; or

                     (d)  the earlier income year mentioned in paragraph 180‑5(2)(c) is the 1996‑97 income year or any later income year and the income year for which that paragraph is being applied is the 1998‑99 income year or any later income year; or

                     (e)  the debt mentioned in paragraph 180‑5(2)(d) was incurred in the 1996‑97 income year or any later income year and the income year mentioned in that paragraph is the 1998‑99 income year or any later income year.

(6)       Subdivision 180‑B of the Income Tax Assessment Act 1997 as inserted by item 15 of this Schedule applies where:

                     (a)  the loss year mentioned in paragraph 180‑15(2)(a) is the 1996‑97 income year or any later income year and the income year mentioned in that paragraph is the 1997‑98 income year or any later income year; or

                     (b)  the income year mentioned in paragraph 180‑15(2)(b) is the 1997‑98 income year or any later income year; or

                     (c)  the earlier income year mentioned in paragraph 180‑15(2)(c) is the 1996‑97 income year or any later income year and the income year mentioned in that paragraph is the 1998‑99 income year or any later income year; or

                     (d)  the income year mentioned in paragraph 180‑15(2)(d) is the 1998‑99 income year or any later income year; or

                     (e)  the debt mentioned in paragraph 180‑15(2)(e) was incurred in the 1996‑97 income year or any later income year and the income year mentioned in that paragraph is the 1998‑99 income year or any later income year.

38  Application

(3)       The amendments made by items 31 and 37 (so far as the amendments made by those items affect Subdivision 165‑A of the Income Tax Assessment Act 1997) apply where the loss year mentioned in that Subdivision is the 1996‑97 income year or any later income year and the income year mentioned in that Subdivision is the 1997‑98 income year or any later income year.

(4)       The amendments made by items 32, 33 and 37 (so far as the amendments made by those items affect Subdivision 165‑B of the Income Tax Assessment Act 1997) apply where the income year mentioned in that Subdivision is the 1997‑98 income year or any later income year.

(5)       The amendments made by items 31, 32, 33, 34, 35 and 37 (so far as the amendments made by those items affect Subdivision 165‑CA of the Income Tax Assessment Act 1997) apply where the earlier income year mentioned in that Subdivision is the 1996‑97 income year or any later income year and the current year mentioned in that Subdivision is the 1998‑99 income year or any later income year.

(6)       The amendments made by items 31, 32, 33, 34, 35 and 37 (so far as the amendments made by those items affect Subdivision 165‑CB of the Income Tax Assessment Act 1997) apply where the income year mentioned in that Subdivision is the 1998‑99 income year or any later income year.

(7)       The amendments made by items 36 and 37 (so far as the amendments made by those items affect Subdivision 165‑C of the Income Tax Assessment Act 1997) apply where the debt mentioned in that Subdivision was incurred in the 1996‑97 income year or any later income year and the current year mentioned in that Subdivision is the 1998‑99 income year or any later income year.

 

Taxation Laws Amendment Act (No. 3) 2000 (No. 66, 2000)

Schedule 3

5  Application of amendment

The amendment made by item 4 applies to assessments for the 1999‑2000 income year and later income years.

Schedule 4

1  Exemption of grants paid from fund

Any amount of ordinary income or statutory income that is paid directly to you, by way of grant of assistance for business recovery, from the Cyclones Elaine and Vance Trust Account is exempt from tax under the Income Tax Assessment Act 1997.

Note:       This exemption does not apply to amounts paid to a third party.

2  Amounts are excluded exempt income

Income that is exempt under item 1 is also excluded exempt income for the purposes of the Income Tax Assessment Act 1997.

Note:       Subsection 36‑20(3) of the Income Tax Assessment Act 1997 contains the general definition of excluded exempt income.

3  No capital gain to arise as a result of grant

If a CGT event relates to a right to receive a grant of assistance for business recovery from the Cyclones Elaine and Vance Trust Account, you do not make a capital gain under Part 3‑1 or 3‑3 of the Income Tax Assessment Act 1997 in respect of that grant.

Example: CGT event C1 (see section 104‑20) deals with the loss or destruction of a CGT asset.

4  Application

This Schedule applies only in relation to assessments for the 1998‑99 and 1999‑2000 income years.

Schedule 5

2  Application of amendment

The amendment made by this Schedule applies to a balancing adjustment if the event that necessitates the adjustment happens after 4.00 pm, by legal time in the Australian Capital Territory, on 3 December 1998.

 

New Business Tax System (Miscellaneous) Act (No. 1) 2000 (No. 79, 2000)

Schedule 1

4  Application of amendments

(2)       The amendments made by items 2 and 3 apply to unfranked non‑portfolio dividends paid to the resident company on or after 1 July 2000.

Schedule 2

7  Application of amendments

The amendments made by this Schedule that relate to tax offsets under Part IIIAA of the Income Tax Assessment Act 1936 apply to offsets that relate to dividends paid on or after 1 July 2000.

Schedule 6

15  Application of amendments

(1)       The amendments made by this Schedule, to the extent that they relate to:

                     (a)  plant whose cost does not exceed $300; or

                     (b)  low‑cost plant (plant whose cost is less than $1,000);

apply to assessments for the income year in which 1 July 2000 occurs and later income years.

(2)       The amendments made by this Schedule, to the extent that they relate to plant that you can allocate to a low‑value pool under subsection 42‑455(3) of the Income Tax Assessment Act 1997, apply to assessments for the 2000‑01 income year and later income years.

 

New Business Tax System (Alienation of Personal Services Income) Act 2000 (No. 86, 2000)

Schedule 1

26  Application

(1)       The amendments made by this Part of this Schedule apply to assessments for the 2000‑2001 income year and later income years.

(2)       However, the Commissioner may, before 1 July 2000, declare in writing that the amendments made by this Part of this Schedule apply to an assessment that:

                     (a)  is an assessment for the 2000‑2001 income year or the 2001‑2002 income year; and

                     (b)  relates to a PPS entity that is included in a class of entities specified in the declaration;

            as if the entity were conducting a personal services business and subsection 87‑15(3) of the Income Tax Assessment Act 1997 did not apply. The declaration has effect accordingly.

(3)       An entity is a PPS entity for the purposes of paragraph (2)(b) if:

                     (a)  on or before 13 April 2000, the entity was entitled to make, and had made, a payee declaration to an eligible paying authority under section 221YHB of the Income Tax Assessment Act 1936; and

                     (b)  the Commissioner had received the payee declaration for the entity from the eligible paying authority before the end of that day; and

                     (c)  the declaration was in force at the end of that day.

(4)       In subitem (3), eligible paying authority and payee declaration have the same meanings as in Division 3A of Part VI of the Income Tax Assessment Act 1936.

 

New Business Tax System (Miscellaneous) Act (No. 2) 2000 (No. 89, 2000)

Schedule 1

68  Application

(1)       The amendments made by items 6 to 17 apply to tax losses, net capital losses or deductions claimed in returns for an income year ending after 11 November 1999.

(2)       The amendments made by items 3 to 5, 20 to 22, 24 to 29, 31 to 33 and 34 to 36 apply to tax losses, net capital losses or deductions claimed in returns for an income year ending after 21 September 1999.

(3)       The amendment made by item 30 applies for the purpose of determining whether a time after 11 November 1999 is a changeover time or alteration time in respect of a company.

(4)       The amendments made by items 37, 39 and 46 to 50, paragraph (aa) inserted by item 43 and paragraph (aa) inserted by item 54, apply where the agreement transferring the relevant tax loss or net capital loss was made on or after 22 February 1999.

(4A)     Paragraph (ab) inserted by item 43 and paragraph (ab) inserted by item 54 apply where the agreement transferring the relevant tax loss or net capital loss was made on or after 13 April 2000.

(5)       The amendments made by items 41, 42, 44, 52, 53 and 55 apply where the agreement transferring the relevant tax loss or net capital loss was made on or after 13 April 2000.

(6)       The amendments made by items 56 to 65 are taken to have applied, or apply, to CGT events happening on or after 21 October 1999.

Schedule 4

6  Application of amendments

The amendments made by this Schedule apply to assessments for the income year including 21 September 1999 and all later income years, for CGT events that happen after 11.45 am, by legal time in the Australian Capital Territory, on 21 September 1999.

Schedule 5

31  Transitional

If you obtain a roll‑over under Subdivision 124‑M for a CGT event that happened before the day on which this Act received the Royal Assent, the requirement to inform a replacement entity about the cost base of your original interest must be complied with within 28 days after that day.

34  Application of amendments

(1)       Subject to subitem (2), the amendments made by this Schedule apply to CGT events happening on or after 10 December 1999.

(2)       The amendment made by item 9 applies to CGT events happening on or after 13 April 2000.

Schedule 6

2  Application of amendment

The amendment made by this Schedule applies to assessments for the 1999‑2000 income year and later income years.

 

New Business Tax System (Integrity Measures) Act 2000 (No. 90, 2000)

Schedule 1

4  Application of amendments

The amendments made by this Schedule apply to assessments for the 2000‑01 income year and later income years.

 

A New Tax System (Tax Administration) Act (No. 2) 2000 (No. 91, 2000)

Schedule 3

18  Application

The items in Schedule 18 to the A New Tax System (Tax Administration) Act 1999 that are repealed by item 17 of this Schedule are taken never to have had any effect.

 

Taxation Laws Amendment Act (No. 4) 2000 (No. 114, 2000)

Schedule 4

82  Application

(1)       The amendments made by this Schedule (other than by item 45) apply to assessments for the 1998‑99 income year and later income years.

(2)       The amendment made by item 45 of this Schedule applies to CGT events happening on or after the day on which this Act receives the Royal Assent.

 

Farm Household Support Amendment Act 2000 (No. 144, 2000)

Schedule 3

7  Transitional provisions

(3)       The Income Tax Assessment Act 1936 and the Income Tax Assessment Act 1997 continue to have effect, after the farm help scheme payment commencement day, in relation to payments of restart income support made in respect of periods before that day, as if the repeals and amendments made by Schedule 2 had not happened.

8  Definitions

In this Schedule:

amended FHS Act means the Farm Household Support Act 1992 as amended and in force from time to time after the commencement of item 2 of Schedule 1 to the Farm Household Support Amendment Act 2000.

restart income support has the meaning given by the Farm Household Support Act 1992 as in force immediately before the farm help scheme payment commencement day.

restart re‑establishment grant has the meaning given by the Farm Household Support Act 1992 as in force immediately before the farm help scheme payment commencement day.

 

Taxation Laws Amendment Act (No. 8) 2000 (No. 156, 2000)

Schedule 6

49  Application

(3)       The amendments made by items 47 and 48 apply to assessments for the 2000‑2001 income year and later income years.

 

Taxation Laws Amendment Act (No. 7) 2000 (No. 173, 2000)

Schedule 3

17  Application of amendments

The amendments made by this Schedule apply to assessments for the income year including 21 September 1999 and all later income years, but only for CGT events that happen after 11.45 am, by legal time in the Australian Capital Territory, on 21 September 1999.

Schedule 4

65  Application of amendments

(1)       The amendments made by this Schedule (except those made by items 2, 6 and 30) apply to assessments for the 1998‑99 income year and later income years.

(3)       The amendment made by item 30 applies to things done on or after 1 July 1998.

Schedule 6

6  Application of amendments

The amendments of Division 115 of the Income Tax Assessment Act 1997 made by this Schedule apply to assessments for the income year including 21 September 1999 and for later income years, in relation to CGT events happening after 11.45 am (by legal time in the Australian Capital Territory) on that day.

 

Defence Legislation Amendment (Enhancement of the Reserves and Modernisation) Act 2001 (No. 10, 2001)

Schedule 2

94  Saving—old regulations

(1)       Regulations that were in effect under any Act immediately before the commencement of this item continue to have effect after that time as if members of an arm of the Defence Force who were members of a particular part or component of that arm immediately before the commencement of this item were still members of that part or component after that time, even if that part or component no longer exists.

Example: Assume that, immediately before the commencement of this item, regulations imposed training obligations on members of the Air Force Specialist Reserve. Those obligations would continue to apply to former members of that Reserve after commencement, even though the Air Force Specialist Reserve itself is no longer mentioned in the Air Force Act 1923 and the members have now become members of the Air Force Reserve.

(2)       However, regulations that continue in effect under this item do so only to the extent that they are not amended or revoked by later regulations.

95  Regulations about transitional matters

(1)       The regulations may make provision in relation to other saving and transitional matters in connection with the amendments made by this Schedule.

(2)       In particular, such regulations may deal with the status, after the commencement of the amendments, of persons who were members of the Defence Force immediately before that time.

(3)       Subitem (2) does not limit the scope of subitem (1).

 

Taxation Laws Amendment (Changes for Senior Australians) Act 2001
(No. 44, 2001)

Schedule 3

2  Application

The amendment made by this Schedule applies to assessments for the 2000‑2001 year of income and later years of income.

 

Governor‑General Legislation Amendment Act 2001 (No. 57, 2001)

Schedule 2

4  Application

(1)       The repeal and amendments made by this Schedule apply in relation to income derived on or after 29 June 2001 (the commencing day).

(2)       However, the repeal and amendments do not apply in relation to income derived on or after the commencing day by a State Governor who held that office immediately before the commencing day.

 

Taxation Laws Amendment Act (No. 1) 2001 (No. 72, 2001)

Schedule 2

108  Amendments related to arrangements treated as sale and loan

(1)       Division 240 of the Income Tax Assessment Act 1997 applies to arrangements entered into after 27 February 1998.

(2)       The amendments made by Part 2 of this Schedule (other than by item 35) apply to arrangements entered into after 27 February 1998.

(3)       The amendment made by item 35 of this Schedule applies to assessments for the 1998‑99 income year and later income years.

109  Amendments related to limited recourse debt

(1)       Division 243 of the Income Tax Assessment Act 1997 applies to debts that are terminated after 27 February 1998.

(2)       The amendments made by Part 3 of this Schedule (other than by items 83 and 90) apply to debts that are terminated after 27 February 1998.

(3)       The amendments made by items 83 and 90 of this Schedule apply to assessments for the 1998‑99 income year and later income years.

110  Amendments related to property transferred as security

The amendments made by Part 4 of this Schedule apply to transfers of property where the transaction under which the property was provided, or redeemed, as security was entered into after 27 February 1998.

 

Taxation Laws Amendment Act (No. 3) 2001 (No. 73, 2001)

Schedule 1

62  Application

(2)       The amendments made by items 56 and 57 apply to assessments for the 2000‑2001 income year and later income years.

Schedule 2

47  Application

The amendments of the Income Tax Assessment Act 1997 made by this Part apply in respect of the 2001‑2002 income year and later income years.

48  Preliminary

(1)       This Part sets out transitional rules for:

                     (a)  new categories of payers of *PAYG instalment for some *instalment quarters in the 2000‑2001 income year; and

                     (b)  some existing PAYG instalment payers for some instalment quarters in the 2000‑2001 income year; and

                     (c)  a method of calculating instalment amounts for some instalment quarters in the 2000‑2001 and 2001‑2002 income years; and

                     (d)  some PAYG instalment payers for some instalment quarters in the 2002 income year.

(2)       In this Part, if there is an asterisk appearing at the start of a term (as in “*instalment quarters”), the term has the same meaning as in subsection 995‑1(1) of the Income Tax Assessment Act 1997.

Schedule 3

19  Application

The amendment of the Income Tax Assessment Act 1997 made by this Part applies, and is taken to have applied, on or after 1 April 2001.

 

New Business Tax System (Capital Allowances) Act 2001 (No. 76, 2001)

Schedule 1

2  Application

The amendments made by this Schedule apply to:

                     (a)  depreciating assets:

                              (i)  you start to hold under a contract entered into after 30 June 2001; or

                             (ii)  you constructed where the construction started after that day; or

                            (iii)  you start to hold in some other way after that day; and

                     (b)  expenditure that does not form part of the cost of a depreciating asset incurred after that day.

Schedule 2

4  Application

The amendments made by this Schedule apply to assessments for the income year in which 1 July 2000 occurs, and for later income years.

Schedule 3

3  Application

The amendments made by this Schedule apply to plant:

                     (a)  you start to own or be the quasi‑owner of under a contract entered into at or after 10 am, by legal time in the Australian Capital Territory, on 9 May 2001; or

                     (b)  you constructed where the construction started at or after that time; or

                     (c)  you start to own or be the quasi‑owner of in some other way at or after that time.

 

New Business Tax System (Capital Allowances—Transitional and Consequential) Act 2001 (No. 77, 2001)

Schedule 2

488  Application

(1)       Subject to this item, the amendments made by this Schedule apply to:

                     (a)  depreciating assets:

                              (i)  you start to hold under a contract entered into after 30 June 2001; or

                             (ii)  you constructed where the construction started after that day; or

                            (iii)  you start to hold in some other way after that day; and

                     (b)  expenditure that does not form part of the cost of a depreciating asset incurred after that day.

(1A)     The amendment made by item 194 applies to amounts received on or after 1 July 2001.

(1B)     The amendments made by items 255 to 258 (inclusive) and 260 to 314 (inclusive) apply to CGT events happening on or after 1 July 2001.

(1C)     The amendment made by item 259 applies to balancing adjustment events occurring on or after 1 July 2001.

(2)       The amendment made by item 244 applies where the transition time or acquisition time, as the case may be, referred to in Division 58 inserted in the Income Tax Assessment Act 1997 by that item is a time on or after 1 July 2001.

(3)       Despite its repeal by item 336 of this Schedule, Division 388 of the former Act continues to apply until the end of the 2002‑03 income year.

Schedule 3

6  Application

The amendments made by this Schedule apply to arrangements entered into on or after 1 July 2001.

 

New Business Tax System (Simplified Tax System) Act 2001 (No. 78, 2001)

Schedule 1

2  Application of amendments

The amendments made by this Schedule apply to assessments for the first income year starting after 30 June 2001, and for later income years.

Schedule 2

24  Application of amendments

The amendments made by this Schedule apply to assessments for the first income year starting after 30 June 2001, and for later income years.

 

Taxation Laws Amendment (Superannuation Contributions) Act 2001
(No. 89, 2001)

Schedule 1

11  Application of amendments

(1)       The amendments made by Parts 1 and 2 of this Schedule apply to contributions made after 4 pm (by legal time in the Australian Capital Territory) on 30 June 2000.

 

New Business Tax System (Debt and Equity) Act 2001 (No. 163, 2001)

Schedule 1

118  Application of amendments

Definitions

(1)       In this item:

CGT amendments means the amendments made by items 7 to 32 of this Schedule.

debt and equity test amendments means the amendments made by this Schedule (other than the CGT amendments).

Application of debt and equity test amendments

(2)       The debt and equity test amendments apply to transactions that take place on or after 1 July 2001. This is so whether the interest in relation to which the transaction takes place was issued before, or is issued on or after, that date. This subitem has effect subject to any election made under subitem (6).

Application of the CGT amendments

(3)       The amendments made by items 7 to 11 of this Schedule apply to:

                     (a)  equity interests issued or allotted; and

                     (b)  options granted;

on or after 1 July 2001.

(4)       The amendments made by items 12 to 32 of this Schedule apply to the conversion of a convertible interest, or the exercise of a right, on or after 1 July 2001.

(5)       Section 130‑40 of the Income Tax Assessment Act 1997 applies to all convertible notes acquired before 20 September 1985 as if they were convertible interests.

Application of debt and equity test amendments to interests issued before 1 July 2001

(6)       If an interest was issued before 1 July 2001, the debt and equity test amendments:

                     (a)  apply only to transactions that take place in relation to the interest on or after 1 July 2004 if the issuer of the interest does not make an election under paragraph (b); and

                     (b)  apply to transactions that take place in relation to the interest on or after 1 July 2001 if the issuer elects to have this paragraph apply to the interest.

(7)       For the purposes of subitem (6), an interest is taken to be issued on or after 1 July 2001 if:

                     (a)  the interest is issued on or after that date; or

                     (b)  the interest is issued before that date; and:

                              (i)  the terms of the interest are altered on or after that date; or

                             (ii)  the interest is rolled over on or after that date; or

                            (iii)  the original term of the interest is extended on or after that date.

In applying subparagraph (b)(i), disregard minor alterations that do not affect rights and obligations in relation to the interest.

(9)       If paragraph (6)(a) applies to an interest:

                     (a)  the interest is disregarded for the purposes of paragraph 164‑10(1)(b) and subsection 164‑15(3) of the Income Tax Assessment Act 1997; and

                     (b)  section 164‑15 of the Income Tax Assessment Act 1997 applies to the interest as if references in paragraph 164‑15(3)(b) and subsection 164‑15(4) to 1 July 2001 were references to 1 July 2004.

(10)     An election in relation to an interest is effective for the purposes of paragraph (6)(b) only if:

                     (a)  the election is lodged with the Commissioner within:

                              (i)  90 days after the day on which this Act receives the Royal Assent; or

                             (ii)  such further time as the Commissioner allows; and

                     (b)  an election under paragraph (6)(b) is made in relation to all other interests that:

                              (i)  were issued by the issuer before 1 July 2001; and

                             (ii)  are substantially similar to that interest and in relation to which an election under that subitem can be made; and

                     (c)  the election contains the following information:

                              (i)  the name of the issuer;

                             (ii)  the tax file number of the issuer;

                            (iii)  the legal form of the interest;

                            (iv)  ASX code or other stock exchange listing code allotted to the issue (if applicable);

                             (v)  the date of the issue;

                            (vi)  the face value of the issue;

                           (vii)  the number of interests of that kind on issue when the election is made;

                          (viii)  coupon/dividend rates and terms including contingencies;

                            (ix)  maturity details;

                             (x)  redemption details and terms including contingencies;

                            (xi)  conversion/exercise details.

An election under paragraph (6)(b) cannot be revoked.

(11)     The Commissioner may allow further time under subparagraph (10)(a)(ii) if he or she:

                     (a)  is satisfied that the issuer would otherwise not have sufficient opportunity to make the election; or

                     (b)  otherwise considers it reasonable to do so.

(12)     If:

                     (a)  paragraph (6)(a) applies to an interest; and

                     (b)  on or after 1 July 2001 and before 1 July 2004:

                              (i)  the terms of the interest are altered; or

                             (ii)  the interest is rolled over; or

                            (iii)  the original term of the interest is extended;

then:

                     (c)  the debt and equity test amendments apply to the transactions in relation to the interest that take place after the event referred to in paragraph (b) occurs; and

                     (d)  subitem (9) applies to the interest as if references in that subitem to 1 July 2004 were references to the time when that event occurs.

In applying subparagraph (b)(i), disregard minor alterations that do not affect rights and obligations in relation to the interest.

(13)     A reference in this item to a transaction includes a reference to:

                     (a)  making a return; and

                     (b)  paying a dividend or unit trust dividend; and

                     (c)  making a distribution in relation to a unit trust; and

                     (d)  paying, crediting or lending an amount; and

                     (e)  making a non‑share distribution; and

                      (f)  forgiving a debt; and

                     (g)  redeeming, cancelling or buying back an interest; and

                     (h)  converting an interest.

 

Tax Laws Amendment Act (No. 2) 2001 (No. 167, 2001)

Schedule 4

10  Application

The amendments of the Income Tax Assessment Act 1997 made by items 8 and 9 of this Schedule apply to gifts made in the 1997‑98 income year and later income years.

Schedule 7

15  Application of amendments

(1)       Subject to subitem (2), the amendments made by this Schedule apply to conservation covenants entered into on or after 15 June 2000.

(2)       The amendments made by this Schedule apply to each conservation covenant entered into on or after 1 July 2002 where the covenantor did not receive money, property or other material benefit for entering into the covenant.

Schedule 8

4  Application

The amendments made by this Schedule apply to gifts made, or conservation covenants entered into, on or after 1 July 2002.

 

Taxation Laws Amendment Act (No. 5) 2001 (No. 168, 2001)

Schedule 1

17  Application

The amendments of the Income Tax Assessment Act 1997 made by this Schedule apply to any withholding payments mentioned in those amendments that an individual receives, or is entitled to receive, on or after 1 July 2002.

Schedule 3

4  Transitional

(1)       The amount of the non‑assessable part referred to in section 104‑70 of the Income Tax Assessment Act 1997 is reduced by a further amount if:

                     (a)  the trustee of a trust makes a payment to you in respect of your unit or your interest in the trust; and

                     (b)  the payment is made on or after 11.45 am, by legal time in the Australian Capital Territory, on 21 September 1999 and before 1 July 2001; and

                     (c)  you are the trustee of a trust that is not a complying superannuation entity; and

                     (d)  a discount capital gain is excluded from the net capital gain of the trust making the payment because of step 3 of the method statement in subsection 102‑5(1) of that Act.

(2)       The reduction is so much of the excluded discount capital gain as is reflected in the payment.

5  Application

(1)       The amendments made by this Schedule apply to payments by trustees made on or after 1 July 2001.

(2)       Item 4 applies to payments by trustees made on or after 11.45 am, by legal time in the Australian Capital Territory, on 21 September 1999 and before 1 July 2001.

Schedule 4

7  Application

The amendment of table item 6.2.9 in subsection 30‑55(2) of the Income Tax Assessment Act 1997 applies to gifts made after 9 March 2000.

9  Application

The amendment of table item 7.2.3 in section 30‑65 of the Income Tax Assessment Act 1997 applies to gifts made after 10 January 2001.

16  Application

The amendment of table item 12.2.2 in subsection 30‑100(2) of the Income Tax Assessment Act 1997 applies to gifts made after 23 July 2000.

Schedule 5

5  Application

The amendment made by item 4 applies to income derived on or after 1 July 2000.

 

Taxation Laws Amendment Act (No. 6) 2001 (No. 169, 2001)

Schedule 4

15  Application

The amendments made by this Schedule apply to LIC capital gains made by listed investment companies on or after 1 July 2001.

Schedule 5

9  Application

The amendments made by this Part apply to things done on or after 15 May 2001.

Schedule 6

19  Application

(1)       The amendments made by this Schedule (other than items 4A, 4B, 16C to 16J, 16L, 18 and 18A) apply, and are taken to have applied, to assessments for the 2000‑2001 income year and later income years.

(2)       However, a declaration made under subitem 26(2) of Schedule 1 to the New Business Tax System (Alienation of Personal Services Income) Act 2000 has effect, and is taken to have had effect, in relation to the amendments made by this Schedule in the same way that it has, and had, effect in relation to the amendments made by Part 1 of that Schedule.

(2A)     The amendments made by items 4A, 4B, 4C and 16M apply to assessments for the 2002‑2003 income year and later income years.

 

Taxation Laws Amendment (Research and Development) Act 2001
(No. 170, 2001)

Schedule 2

51  Application

The amendments made by this Division to the Income Tax Assessment Act 1936 and the Income Tax Assessment Act 1997 apply to assessments for the income year in which 29 January 2001 occurs and for later income years.

92  Application

The amendments made by this Division to the Income Tax Assessment Act 1936 and the Income Tax Assessment Act 1997 apply to assessments for the income year in which 1 July 2001 occurs and for later income years.

Schedule 3

19  Application

(1)       Subject to subitem (2), the amendments made by this Schedule apply to assessments for the first year of income starting after 30 June 2001 and for later years.

 

Taxation Laws Amendment (Superannuation) Act (No. 1) 2002
(No. 15, 2002)

Schedule 1

21  Application

The amendments made by this Schedule apply to payments made on or after 1 July 2002.

 

Taxation Laws Amendment Act (No. 1) 2002 (No. 26, 2002)

Schedule 1

4  Transitional

(1)       Section 15‑45 of the Income Tax Assessment Act 1997 may apply differently for the manager of an agreement mentioned in section 82KZMG of the Income Tax Assessment Act 1936 if an entity can first claim a deduction in accordance with section 82KZMG for the 2001‑02 or 2002‑03 income year for an amount paid under the agreement.

(2)       The manager can choose to include in the manager’s assessable income for the income year in which the amount was paid one half of the amount that the manager would otherwise be required to include for that year under section 15‑45 of the Income Tax Assessment Act 1997, and to include one half of that amount for the following income year.

9  Application of amendments

(1)       The amendments made by Part 1 of this Schedule apply to expenditure incurred on or after 2 October 2001 and on or before 30 June 2006.

(2)       The amendments made by Part 2 of this Schedule apply to assessments for the 2000‑01 income year and later income years.

 

Taxation Laws Amendment (Film Incentives) Act 2002 (No. 27, 2002)

Schedule 1

12  Application

The amendments made by this Schedule apply to expenditure incurred at any time (whether before or after the commencement of this Schedule).

 

Taxation Laws Amendment (Baby Bonus) Act 2002 (No. 32, 2002)

4  Application

                   The amendments made by this Act apply to assessments for the 2001‑02 income year and later income years.

 

Taxation Laws Amendment (Superannuation) Act (No. 2) 2002
(No. 51, 2002)

4  Amendment of assessments

                   Section 37 of the Superannuation Guarantee (Administration) Act 1992 does not prevent the amendment of an assessment for the purposes of giving effect to this Act.

Schedule 1

202  Application of amendments made by Part 2

(2)       The amendments made by items 170 to 186 apply in relation to assessments under the Income Tax Assessment Act 1936 for the 2003‑2004 year of income and later years of income.

Schedule 3

4  Application of amendments made by Part 1

The amendments made by Part 1 apply in relation to assessments for the 2002‑2003 year of income and later years of income.

 

Taxation Laws Amendment Act (No. 4) 2002 (No. 53, 2002)

Schedule 1

46  Application—amendments of the Income Tax Assessment Act 1997 and the Income Tax (Transitional Provisions) Act 1997

The amendments of the Income Tax Assessment Act 1997 and the Income Tax (Transitional Provisions) Act 1997 made by this Schedule apply in relation to an income year that begins on or after 1 July 2001.

Schedule 2

16  Transitional

The choice referred to in section 124‑865, or subsection 124‑870(1), of the Income Tax Assessment Act 1997 must be made within 12 months after the day on which the Taxation Laws Amendment Act (No. 4) 2002 received the Royal Assent (the Assent day) for a trust restructure that happened on or after 11 November 1999 and before the Assent day.

17  Application of amendments

The amendments made by this Schedule apply to CGT events happening on or after 11 November 1999.

Schedule 4

15  Application

(1)       The amendments made by items 1 to 9, 13 and 14 apply to a depreciating asset if the start time for the asset occurs on or after 1 July 2002.

(2)       The amendments made by items 10 to 12 apply to a privatised asset held on or after 1 July 2002.

 

Taxation Laws Amendment Act (No. 2) 2002 (No. 57, 2002)

Schedule 4

4  Application

(2)       The amendment made by item 3 of this Schedule applies to tax offsets that relate to dividends paid on or after 1 July 2000.

8  Application

The amendments made by items 5 to 7 of this Schedule apply to assessments for income years ending on or after 22 May 2001.

Schedule 7

3  Application

The amendments made by this Schedule apply to all income years, whether beginning before or after this item commences.

Schedule 9

45  Application—various items in Part 2

The amendments made by items 10, 13, 14, 21, 25, 26, 33 and 36 apply in relation to gifts made after 30 June 1997.

Schedule 11

5  Application

The amendments made by this Schedule apply to CGT events happening on or after 10 December 1999.

Schedule 12

22  Application

The amendment made by item 21 applies to assessments for the 1998‑99 income year and later income years.

24  Application

The amendment made by item 23 applies to assessments for the 1997‑98 income year and later income years.

86  Application

An item in a Schedule to an Act that is repealed by an item in this Part is taken never to have had any effect.

 

New Business Tax System (Consolidation) Act (No. 1) 2002 (No. 68, 2002)

Schedule 3

2  Application

The amendment of section 4‑15 of the Income Tax Assessment Act 1997 made by this Schedule applies to the income year including 1 July 2002 and each later income year.

19  Application of amendments of Subdivision 104‑J

The amendments of Subdivision 104‑J of the Income Tax Assessment Act 1997 made by this Schedule apply in relation to a break‑up time happening after 30 June 2002.

23  Application of amendments of Subdivision 126‑B

(1)       The amendments of Subdivision 126‑B of the Income Tax Assessment Act 1997 made by this Schedule apply in relation to a trigger event happening after 30 June 2003, except a trigger event to which subitem (2) applies.

(2)       This subitem and subitem (3) apply to a trigger event if:

                     (a)  the originating company or the recipient company involved in the trigger event becomes a member of a consolidated group, or MEC group, on the day (the consolidation day) on which that group comes into existence; and

                     (b)  the consolidation day either is before 1 July 2003 or is both:

                              (i)  the first day of the first income year starting after 30 June 2003 of the group’s head company (for a consolidated group) or provisional head company (for a MEC group) on the consolidation day; and

                             (ii)  before 1 July 2004; and

                     (c)  the originating company was not a member of a consolidated group or MEC group before the consolidation day.

(3)       The amendments of Subdivision 126‑B of the Income Tax Assessment Act 1997 made by this Schedule apply in relation to the trigger event if it happens on or after the consolidation day.

37  Basic rule about application of amendments of Division 170

(1)       The amendments of Division 170 of the Income Tax Assessment Act 1997 made by this Schedule apply in relation to a company for each of its:

                     (a)  income years starting after 30 June 2003; and

                     (b)  non‑membership periods (if any) under section 701‑30 of the Income Tax Assessment Act 1997 starting after 30 June 2003.

(2)       This item does not apply in relation to a company to which item 38 applies.

38  Different application for members of certain groups

(1)       This item applies to a company if:

                     (a)  the company becomes a member of a consolidated group or MEC group on the day (the consolidation day) the group comes into existence; and

                     (b)  the consolidation day either is before 1 July 2003 or is both:

                              (i)  the first day of the first income year starting after 30 June 2003 of the group’s head company (for a consolidated group) or provisional head company (for a MEC group) on the consolidation day; and

                             (ii)  before 1 July 2004; and

                     (c)  the company was not a member of a consolidated group or MEC group before the consolidation day.

(2)       The amendments of Division 170 of the Income Tax Assessment Act 1997 made by this Schedule apply in relation to the company for each of its:

                     (a)  income years starting on or after the consolidation day; and

                     (b)  non‑membership periods (if any) under section 701‑30 of the Income Tax Assessment Act 1997 starting on or after the consolidation day.

39  Transfer for final income year before amendments apply

(1)       In this item:

apportioning day of a company means:

                     (a)  if item 37 applies to the company—1 July 2003; or

                     (b)  if item 38 applies to the company—the consolidation day.

Application

(2)       This item applies to these transfers under Subdivision 170‑A or 170‑B of the Income Tax Assessment Act 1997 involving a company:

                     (a)  a transfer by the company of a loss it made for the income year (the final year) just before the first income year for which the amendments of those Subdivisions by this Schedule apply to the company;

                     (b)  a transfer to the company for the final year of a loss made for that income year or an earlier income year.

However, this item does not apply to a transfer involving companies that would satisfy either subsections 170‑30(3) and (4) or 170‑130(3) and (4) of that Act (as amended by this Schedule) if those subsections applied for the final year.

Object

(3)       The main object of this item is to ensure that the company can either:

                     (a)  transfer a loss it makes for the final year only so far as the loss is attributable to so much of the final year as occurs before its apportioning day; or

                     (b)  utilise a loss transferred to it to reduce income or gains for the final year only so far as the income or gains are attributable to so much of the final year as occurs before its apportioning day.

Apportioning limit on transferring company’s loss for final year

(4)       Despite section 170‑45 of the Income Tax Assessment Act 1997, the amount of a tax loss made for the final year by the company that can be transferred cannot exceed the amount worked out using the formula:

Note:       If the company’s final year ends just before its apportioning day, this subitem does not reduce the amount of the tax loss the company can transfer.

(5)       Despite section 170‑145 of the Income Tax Assessment Act 1997, a net capital loss made for the final year by the company:

                     (a)  can be transferred only if the sum of the capital losses made by the company during the final year before its apportioning day exceeds the sum of the capital gains made by the company during the final year before its apportioning day; and

                     (b)  cannot be transferred to an extent greater than that excess.

Note:       If the company’s final year ends just before its apportioning day, this subitem does not reduce the amount of the net capital loss the company can transfer.

Apportioning limit based on transferee company’s income or gains for final year

(6)       Despite section 170‑45 of the Income Tax Assessment Act 1997, the amount of a tax loss (for the final year or an earlier income year) that can be transferred to the company for the final year cannot exceed the amount worked out using the formula:

Note:       If the company’s final year ends just before its apportioning day, this subitem does not reduce the amount of the tax loss that can be transferred to the company.

(7)       Despite section 170‑145 of the Income Tax Assessment Act 1997, a net capital loss (for the final year or an earlier income year) can be transferred to the company for the final year:

                     (a)  only if the company would have had a net capital gain for the final year apart from that section had the final year ended on the day before the company’s apportioning day; and

                     (b)  only to the extent to which it could have been transferred consistently with subsection 170‑145(6) of that Act if the result of step 1 of the method statement had been the amount of the company’s net capital gain worked out on the basis described in paragraph (a) of this subitem.

Note:       If the company’s final year ends just before its apportioning day, this subitem does not reduce the amount of the net capital loss that can be transferred to the company.

Transfer not prevented by transferor joining consolidated group

(8)       Subsections 170‑45(1) and 170‑145(1) of the Income Tax Assessment Act 1997 apply in relation to a transfer from a company (whether or not it is the company mentioned in subitem (4) or (5)) that becomes a member of a consolidated group or MEC group as if the fact that the company becomes such a member does not affect its ability to carry forward losses for the final year or an earlier income year.

Application to non‑membership periods less than a year

(9)       If, under section 701‑30 of the Income Tax Assessment Act 1997, the company has a non‑membership period that ends just before the company first becomes a subsidiary member of a consolidated group or MEC group, Subdivisions 170‑A and 170‑B of that Act and subitems (3) to (8) (inclusive) apply in relation to the period as if it were the final year.

(10)     To avoid doubt, section 701‑30 of the Income Tax Assessment Act 1997 does not prevent a company from transferring under Subdivision 170‑A or 170‑B of that Act (applying as described in subitem (9)) a non‑membership period loss described in that section for the non‑membership period mentioned in that subitem.

 

New Business Tax System (Consolidation, Value Shifting, Demergers and Other Measures) Act 2002 (No. 90, 2002)

Schedule 14

19  Application

The amendments made by this Schedule apply to a time at or after 1 pm (by legal time in the Australian Capital Territory) on 11 November 1999.

Schedule 15

13  Saving for former Division 138

Despite the repeal by item 9, the repealed provisions continue to apply to an act referred to in Division 138 of the Income Tax Assessment Act 1997 as the trigger event, if the act was done:

                     (a)  under a scheme entered into before 27 June 2002; or

                     (b)  on or after 27 June 2002 and before 1 July 2002.

14  Saving for former Division 139

Despite the repeal by item 10, the repealed provisions continue to apply to an event or act referred to in Division 139 of the Income Tax Assessment Act 1997 as the trigger event, if the event happened, or the act was done:

                     (a)  under a scheme entered into before 27 June 2002; or

                     (b)  on or after 27 June 2002 and before 1 July 2002.

15  Saving for former provisions about direct value shifts

Despite the repeal by item 11, the repealed provisions continue to apply to a scheme, unless Division 725 of the Income Tax Assessment Act 1997 applies to the scheme.

Schedule 16

54  Transitional

A company that makes payments in respect of shares in the company under a demerger that happens on or after 1 July 2002 and before this Act receives the Royal Assent can choose to apply section 45B of the Income Tax Assessment Act 1936 as that section existed before the amendments made by this Act to the demerger rather than that section as amended by this Act if:

                     (a)  the head entity of the demerger group is a listed public company; and

                     (b)  the only CGT events (if any) that happen under the demerger to all original interests in that head entity are CGT event A1, CGT event C2 or CGT event G1.

55  Application

The amendments made by this Schedule apply to demergers happening on or after 1 July 2002.

 

New Business Tax System (Consolidation and Other Measures) Act (No. 1) 2002 (No. 117, 2002)

Schedule 2

11  Application of certain amendments

The amendments made by items 1 to 7 apply on and after 1 July 2002.

Schedule 8

6  Application of amendments

The amendments made by this Schedule to subsections 719‑5(4) and 719‑40(1) of the Income Tax Assessment Act 1997 apply in relation to a notice, whether given before, at or after the commencement of this item.

Schedule 12

12  Application of amendments of Subdivision 170‑A

The amendments of Subdivision 170‑A of the Income Tax Assessment Act 1997 made by this Schedule apply in relation to deduction years ending after 1 July 2002.

22  Application of amendments of Subdivision 170‑B

The amendments of Subdivision 170‑B of the Income Tax Assessment Act 1997 made by this Schedule apply in relation to application years ending after 1 July 2002.

Schedule 17

6  Application

(1)       The amendments of the Income Tax Assessment Act 1997 made by items 1, 4 and 5 of this Schedule apply to non‑share dividends paid after 30 June 2002.

(2)       The amendment of the Income Tax Assessment Act 1997 made by item 2 of this Schedule applies to franking periods that begin after 30 June 2002.

 

Taxation Laws Amendment Act (No. 5) 2002 (No. 119, 2002)

Schedule 1

8  Application of amendments

The amendments of the Income Tax (Transitional Provisions) Act 1997 and the Income Tax Assessment Act 1997 made by this Schedule apply to assessments for the 2001‑2002 income year.

Schedule 2

7  Application

The amendments made by this Schedule apply to amounts paid on or after 23 September 1998.

Schedule 3

100  Application of amendments

(1)       The amendments made by items 1 to 39 (inclusive), 50 to 58 (inclusive) and 76 of this Schedule apply to:

                     (a)  depreciating assets:

                              (i)  you start to hold under a contract entered into after 30 June 2001; or

                             (ii)  you constructed where the construction started after that day; or

                            (iii)  you start to hold in some other way after that day; and

                     (b)  expenditure that does not form part of the cost of a depreciating asset incurred after that day.

(2)       The amendments made by items 40 to 49 (inclusive) of this Schedule apply to expenditure that does not form part of the cost of a depreciating asset incurred on or after 1 July 2001.

(3)       The amendments made by items 59 and 60 of this Schedule apply to balancing adjustment events occurring on or after 1 July 2001.

(4)       The amendments made by items 61 and 64 to 71 (inclusive) of this Schedule apply to CGT events happening on or after 1 July 2001.

(5)       The amendment made by item 62 of this Schedule applies to assessments for the income year in which 29 January 2001 occurs and later income years.

(6)       The amendment made by item 63 of this Schedule applies to assessments for the income year in which 1 July 2001 occurs and later income years.

(7)       The amendment made by item 64 of this Schedule applies to debts that are terminated after 27 February 1998.

(8)       The amendments made by items 72, 73, 74, 75, 77 and 78 of this Schedule apply to assessments for the first income year starting after 30 June 2001, and for later income years.

 

Taxation Laws Amendment (Venture Capital) Act 2002 (No. 136, 2002)

Schedule 1

27  Application

The amendments made by this Schedule apply, and are taken to have applied, to CGT events relating to investments made on or after 1 July 2002.

Schedule 2

28  Application

The amendments made by this Schedule apply, and are taken to have applied, to the 2002‑2003 income year and later income years.

Schedule 3

18  Application

The amendments made by this Schedule apply, and are taken to have applied, to the 2002‑2003 income year and later income years.

 

Taxation Laws Amendment (Structured Settlements and Structured Orders) Act 2002 (No. 139, 2002)

Schedule 1

16A  Application of amended definitions

(1)       The amendments made by items 1A and 12A apply to assessments for the 2001‑2002 income year and later income years.

(2)       However, the amendments do not apply unless the date of the settlement or order (within the meaning of Division 54 of the Income Tax Assessment Act 1997) is 26 September 2001 or a later date.

 

Taxation Laws Amendment Act (No. 1) 2003 (No. 12, 2003)

Schedule 2

2  Application of amendment

The amendment of the Income Tax Assessment Act 1997 made by this Schedule applies to assessments for the 2001‑2002 income year and later income years.

Schedule 3

2  Application

The amendment made by this Part applies to an assessment for the income year including 1 January 2003 or a later income year.

6  Application

The amendments made by this Part apply to an assessment for the income year including 1 January 2003 or a later income year.

11  Application

The amendments made by this Part apply to an assessment for the income year including 1 January 2003 or a later income year.

13  Application

The definition of scholarship plan in subsection 995‑1(1) of the Income Tax Assessment Act 1997 as amended by this Part applies on and after 1 January 2003.

 

New Business Tax System (Consolidation and Other Measures) Act 2003
(No. 16, 2003)

Schedule 9

21  Application of amendments of subsection 995‑1(1)

The amendments of subsection 995‑1(1) of the Income Tax Assessment Act 1997 made by this Part apply on and after 1 July 2002.

Schedule 13

5  Application of amendment of subsection 995‑1(1)

The amendment of subsection 995‑1(1) of the Income Tax Assessment Act 1997 made by this Schedule applies on and after 1 July 2002.

Schedule 24

23  Application of amendments

The amendments made by items 20 to 22 apply on and after 1 July 2002.

Schedule 26

8  Application

The amendments made by this Schedule apply to a time at or after 1 pm (by legal time in the Australian Capital Territory) on 11 November 1999.

Schedule 27

21  Application

(1)       The amendments made by items 1 and 2 of this Schedule apply to distributions made after 30 June 2002.

(2)       The amendments made by items 3 to 19 of this Schedule apply to events that occur after 30 June 2002.

Schedule 28

19  Application

(1)       The amendment made by item 1 of this Schedule applies to distributions made after 30 June 2002.

(2)       The amendment made by item 2 of this Schedule applies where the franking periods to which the notice relates occur after 30 June 2002.

(3)       The amendments made by items 3 to 12 and item 16 of this Schedule apply to income years ending after 30 June 2002.

Schedule 30

2  Application

The amendments made by this Schedule apply to distributions made after 30 June 2002.

 

Family and Community Services Legislation Amendment (Australians Working Together and other 2001 Budget Measures) Act 2003 (No. 35, 2003)

Schedule 2

7  Application provision

The amendments made by items 5 and 6 of this Schedule apply in relation to assessments in respect of income of the first year of income ending after the commencement of this Schedule and of all later years of income.

 

Taxation Laws Amendment Act (No. 2) 2003 (No. 65, 2003)

Schedule 2

5  Application

The amendments of the Income Tax Assessment Act 1997 made by this Schedule apply to assessments for the 1996‑97 income year and assessments for later income years.

 

Taxation Laws Amendment Act (No. 4) 2003 (No. 66, 2003)

Schedule 2

17  Application of amendments

The amendments made by this Schedule apply to assessments for the income year in which 1 July 2001 occurred and later income years.

Schedule 3

140  Application

(1)       Subject to this item, the amendments made by this Schedule apply to assessments for the 2003‑04 income year and later income years.

(2)       The amendment made by item 71 applies to things done on or after 1 July 2000.

(3)       The amendments made by items 92, 93 and 95 apply to assessments for the 1997‑98 income year and later income years.

(4)       The amendments made by items 91 and 94 apply to assessments for the 2000‑01 income year and later income years.

(5)       The amendments made by items 41, 42, 43, 44, 45, 126, 127 and 128 apply to amounts derived on or after 1 July 2000.

(6)       The amendments made by items 109 and 110 apply to events that occur on or after 1 July 2002.

(8)       The amendments made by items 70A and 128A apply to an assessment for the income year including 1 January 2003 or a later income year.

141  Transitional

(1)       Subparagraphs 207‑120(1)(b)(ii) and 207‑120(2)(b)(ii) of the Income Tax Assessment Act 1997 have effect during the period starting on 1 July 2002 and ending just before the start of the 2003‑04 income year as if references in those subparagraphs to an amount being non‑assessable non‑exempt income were references to the amount being neither assessable income nor exempt income.

(2)       Paragraphs 15‑60(3)(b) and 320‑112(3)(b) of the Income Tax Assessment Act 1997 have effect during any period starting before the start of the 2003‑04 income year as if references in those paragraphs to an amount being non‑assessable non‑exempt income were references to the amount being neither assessable income nor exempt income.

Schedule 4

5  Application

(1)       The amendment made by item 1 of this Schedule applies to tax offsets arising because of events that occur on or after 1 July 2000.

(2)       The amendment made by item 2 of this Schedule applies to tax offsets arising because of events that occur on or after 1 July 2002.

(3)       The amendments made by items 3 and 4 of this Schedule apply to tax offsets arising because of premiums, or amounts in respect of premiums, paid on or after 1 July 2002.

Schedule 6

3  Application

The amendments made by this Schedule apply to payments made after the commencement of this Schedule.

Schedule 7

9  Application

The amendments made by items 6 to 8 of this Schedule apply to CGT events that happen on or after 1 April 2003.

 

Taxation Laws Amendment Act (No. 6) 2003 (No. 67, 2003)

Schedule 8

3  Application

Items 1 and 2 of Schedule 15 to the New Business Tax System (Consolidation, Value Shifting, Demergers and Other Measures) Act 2002 are taken always to have had effect as amended by this Schedule.

Schedule 10

23  Application

The amendments made by this Division apply to transactions, events and things in relation to which section 960‑50 of the Income Tax Assessment Act 1997 applies, or would apply apart from subsection (10) of that section, because of paragraph 960‑55(1)(a) of that Act.

 

Australian Heritage Council (Consequential and Transitional Provisions) Act 2003 (No. 86, 2003)

Schedule 1

5  Application of amendment of section 30‑15

The amendment of section 30‑15 of the Income Tax Assessment Act 1997 applies to gifts made after the commencement of Divisions 1A and 3A of Part 15 of the Environment Protection and Biodiversity Conservation Act 1999 and Part 5 of the Australian Heritage Council Act 2003.

 

Taxation Laws Amendment Act (No. 3) 2003 (No. 101, 2003)

5  No tax consequences result from AGL’s corporate conversion etc.

             (1)  The object of this section is to ensure that no taxation consequences (other than those arising under subsections (9) and (10)) arise in relation to any person as a result of:

                     (a)  AGL’s corporate conversion; or

                     (b)  AGL’s registration; or

                     (c)  the operation of any provision of the Conversion Act; or

                     (d)  any action taken under any provision of the Conversion Act.

             (2)  In resolving any ambiguity as to the meaning of this section, an interpretation that is consistent with the object of this section is to be preferred to an interpretation that is not consistent with that object.

             (3)  This section only has effect for the purposes of any Commonwealth laws relating to taxation, including, but not limited to:

                     (a)  the income tax law; and

                     (b)  the GST law; and

                     (c)  the fringe benefits tax law; and

                     (d)  the A New Tax System (Australian Business Number) Act 1999; and

                     (e)  the Taxation Administration Act 1953; and

                      (f)  the International Tax Agreements Act 1953; and

                     (g)  the Taxation (Interest on Overpayments and Early Payments) Act 1983; and

                     (h)  the Superannuation Guarantee (Administration) Act 1992; and

                      (i)  the Superannuation Guarantee Charge Act 1992.

             (4)  AGL, corporatised AGL and registered AGL are taken to be, and to have always been, the same company and the same entity.

             (5)  Subsections (6) to (8) do not limit, by implication, any other effects of this section.

             (6)  No taxation consequences (other than those arising under subsections (9) and (10)) are taken to have arisen in relation to any person as a result of:

                     (a)  AGL’s corporate conversion; or

                     (b)  AGL’s registration; or

                     (c)  the operation of any provision of the Conversion Act; or

                     (d)  any action taken under any provision of the Conversion Act.

             (7)  The legal and beneficial ownership of:

                     (a)  shares in AGL; and

                     (b)  interests in shares in AGL;

are taken not to have altered as a result of AGL’s corporate conversion or AGL’s registration. However, this subsection does not imply that those shares are not shares in corporatised AGL or registered AGL.

             (8)  Anything done by or to:

                     (a)  AGL’s Secretary; or

                     (b)  the estate of AGL’s Secretary; or

                     (c)  a replacement trustee in respect of the trust created by subclause 4(1)(c) of Schedule 3 to the Conversion Act;

as a result of the operation of clause 4 of Schedule 3 to the Conversion Act is taken to have been done by or to corporatised AGL or registered AGL, as the case may be.

             (9)  Despite any other provision of this section:

                     (a)  the item 9 of Schedule 2 to the Taxation Laws Amendment (Company Law Review) Act 1998 that was included in that Act as originally enacted; and

                     (b)  the item of Schedule 2 to the Taxation Laws Amendment (Company Law Review) Act 1998 that was inserted in that Act by item 7 of Schedule 1 to the Taxation Laws Amendment Act (No. 7) 1999;

apply to AGL as if the reference in each of those items of Schedule 2 to the Taxation Laws Amendment (Company Law Review) Act 1998 to “Schedule 5 to the Company Law Review Act 1998” were a reference to “Schedule 4 to the Conversion Act”.

Note:          Item 7 of Schedule 1 to the Taxation Laws Amendment Act (No. 7) 1999 inserted a second item 9 of Schedule 2 to the Taxation Laws Amendment (Company Law Review) Act 1998 into that Act.

           (10)  Despite any other provision of this section, any Commonwealth law that:

                     (a)  relates to taxation; and

                     (b)  has a substantially similar effect to an item of Schedule 2 to the Taxation Laws Amendment (Company Law Review) Act 1998 mentioned in paragraph (9)(a) or (9)(b); and

                     (c)  commences after the commencement of this section;

is taken to be modified in such a way as to enable it to apply to AGL and to apply to AGL in that modified form.

           (11)  In this section:

AGL has the same meaning as in the Conversion Act.

AGL’s corporate conversion means AGL being constituted as a body corporate under the Conversion Act.

AGL’s registration means corporatised AGL’s registration as a public company limited by shares under Part 5B.1 of the Corporations Act 2001 in accordance with the Conversion Act.

AGL’s Secretary means a person who was the Secretary of AGL under AGL’s constitution immediately before AGL’s corporate conversion.

Conversion Act means the AGL Corporate Conversion Act 2002 of New South Wales.

corporatised AGL has the same meaning as in the Conversion Act.

registered AGL has the same meaning as in the Conversion Act.

taxation means any taxation imposed under a Commonwealth law.

           (12)  Other expressions mean the same in this section as in the Income Tax Assessment Act 1997.

Schedule 1 

22  Application

The amendment made by item 2 applies to gifts made after 30 June 1997.

Schedule 2 

12  Application

(1)       The amendments made by items 1, 2, 4, 7, 8, 10 and 11 apply to assessments for the 1998‑99 income year and later income years.

(2)       The amendments made by items 3 and 5 apply to shares or rights where the beneficial interest in the share or right was acquired after 5 pm (by legal time in the Australian Capital Territory) on 27 February 2001.

(3)       The amendments made by items 6 and 9 apply to shares or rights acquired (within the meaning of Division 13A of Part III of the Income Tax Assessment Act 1936) by you after 5 pm (by legal time in the Australian Capital Territory) on 27 February 2001. Those amendments also apply to shares or rights acquired by you at or before that time if you choose that the amendments apply.

(4)       A share or right that, under section 139DQ of the Income Tax Assessment Act 1936, is treated as if it were a continuation of another share or right for the purposes of Division 13A of Part III of that Act:

                     (a)  is treated in the same way for the purposes of subitem (3) of this item; and

                     (b)  is taken, for the purposes of that subitem, to have been acquired at the time of the last acquisition of the share or right that was not treated as such a continuation for the purposes of that Division.

Schedule 3 

6  Application

The amendments made by this Schedule apply to distributions made on or after 1 July 2002.

 

Taxation Laws Amendment Act (No. 8) 2003 (No. 107, 2003)

Schedule 1

9  Application

(1)       The amendments made by Part 1 of this Schedule apply to non‑share dividends paid after 30 June 2002.

Schedule 2

40  Application

The amendments made by this Schedule apply on and after 1 July 2002.

Schedule 3

2  Application

The amendment made by this Schedule applies to conservation covenants entered into on or after 1 July 2002.

Schedule 5

3  Application of amendments

The amendments made by items 1 and 2 apply in relation to gifts made on or after 1 July 2003.

Schedule 7

9  Application

Subject to the rules on the application of Part 3‑6 of the Income Tax Assessment Act 1997 set out in the Income Tax (Transitional Provisions) Act 1997, the amendments made by items 1 to 8 apply to events that occur on or after 1 July 2002.

18  Application

The amendments made by items 13 to 17 apply in relation to an entity’s assessments for the first income year (within the meaning of section 205‑75 of the Income Tax (Transitional Provisions) Act 1997) and later income years.

 

Superannuation (Government Co‑contribution for Low Income Earners) (Consequential Amendments) Act 2003 (No. 111, 2003)

Schedule 1

25  Application of amendments

The amendments made by Part 1 of this Schedule apply in relation to contributions made to complying superannuation funds and RSAs on or after 1 July 2003.

 

New Business Tax System (Taxation of Financial Arrangements) Act (No. 1) 2003 (No. 133, 2003)

Schedule 1

17  Application of amendments

(2)       The amendments of sections 122‑25, 122‑135 and 126‑50 of the Income Tax Assessment Act 1997 made by this Schedule apply to the disposal or redemption of an exchangeable interest on or after 1 July 2001.

Schedule 2

9  Application of amendments

The amendments made by this Schedule apply to the conversion of a convertible interest on or after 1 July 2001.

Schedule 3

2  Application of amendment

The amendment made by this Schedule applies to the exercise of a right on or after 1 July 2001.

Schedule 4

77  Transitional—Division 3B of Part III of the Income Tax Assessment Act 1936

(2)       Despite the following amendments:

                     (a)  the amendment of subsection 20‑30(2) of the Income Tax Assessment Act 1997 by this Schedule;

                     (b)  the amendment of subsection 170(10) of the Income Tax Assessment Act 1936 by this Schedule;

subsection 20‑30(2) of the Income Tax Assessment Act 1997 and subsection 170(10) of the Income Tax Assessment Act 1936 continue to apply, in relation to the former Division 3B of Part III of the Income Tax Assessment Act 1936, as if those amendments had not been made.

78  Transitional—sections 20, 102AAX and 391 of the Income Tax Assessment Act 1936 and sections 103‑20 and 376‑60 of the Income Tax Assessment Act 1997

(1)       Despite the repeals of sections 20, 102AAX and 391 of the Income Tax Assessment Act 1936 and sections 103‑20 and 376‑60 of the Income Tax Assessment Act 1997 by this Schedule, those sections continue to apply, in relation to a transaction, event or thing:

                     (a)  that involves an amount in a foreign currency; and

                     (b)  to which section 960‑50 of the Income Tax Assessment Act 1997 does not apply;

as if those repeals had not happened.

(2)       Despite the following amendments:

                     (a)  the amendment of section 102AAW of the Income Tax Assessment Act 1936 by this Schedule;

                     (b)  the amendment of section 389 of the Income Tax Assessment Act 1936 by this Schedule;

sections 102AAW and 389 of the Income Tax Assessment Act 1936 continue to apply, in relation to the former section 20 of the Income Tax Assessment Act 1936, as if those amendments had not been made.

 

Taxation Laws Amendment Act (No. 5) 2003 (No. 142, 2003)

Schedule 1

1  Application

The amendments made by this Schedule apply in relation to an income year that begins on or after 1 July 2001.

Schedule 2

1  Application

The amendments made by this Schedule (except Part 5) apply in relation to an income year that begins on or after 1 July 2002.

49  Application

The amendments made by this Part (except items 50 and 51) do not apply for the purposes of working out a capital gain made from a CGT event happening before 1 July 2002.

51  Application

Item 31 of Schedule 4 to the Taxation Laws Amendment Act (No. 7) 2000 is taken always to have had effect as amended by item 50 of this Schedule.

Schedule 3

15  Application

The amendments made by this Part apply in relation to an income year that begins on or after 1 July 2003.

18  Application

The amendments made by this Part apply in relation to an income year that begins on or after 1 July 2003, and are not intended to affect the interpretation of subsection 820‑680(1) as applying in relation to an income year that starts before that day.

Schedule 7

15  Application

(1)       The amendments made by this Part apply to assessments for the 1997‑98 income year and later income years.

(2)       However, an amendment made by this Part affecting a provision does not apply to anything to which the provision did not apply before the amendment.

Example: Section 707‑125 of the Income Tax Assessment Act 1997 applies on and after 1 July 2002. Despite the reference in subitem (1) to the 1997‑98 income year, the amendments of that section made by this Part do not apply before 1 July 2002.

23  Application

The amendments made by this Part apply to assessments for the 1998‑99 income year and later income years.

Schedule 8

24  Application of amendments

(2)       The amendments made by items 7, 8, 9, 12, 14, 15 and 16 apply in relation to the deduction of a tax loss in the income year including 1 July 2002 and each later income year.

(3)       The amendments made by items 4, 5, 6, 10, 11, 13, 17, 17A, 17B, 18, 19, 20 and 21 apply to the income year including 1 July 2002 and each later income year.

 

Taxation Laws Amendment Act (No. 2) 2004 (No. 20, 2004)

Schedule 3

6  Application of amendments in items 2, 3 and 4

The amendments made by items 2, 3 and 4 of this Schedule apply to assessments for the 2000‑2001 income year and each subsequent income year.

Schedule 4

9  Application

The amendments made by this Schedule apply to sugar industry exit grants received on or after 1 February 2003.

Schedule 7

9  Application

The amendments made by this Schedule apply to balancing adjustment events occurring on or after 1 July 2001.

Schedule 8

14  Application of amendments made by this Schedule

The amendments made by this Schedule apply on and after 1 July 2002.

 

Family Assistance Legislation Amendment (Extension of Time Limits) Act 2004 (No. 33, 2004)

Schedule 1

9  Application

The amendments made by this Part apply to fees or commission incurred, and in relation to advice provided, either before or after the commencement of this Part.

 

Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004 (No. 52, 2004)

Schedule 4

14  Application of amendments

(2)       Subject to subitem (3), the amendments made by Part 2 of this Schedule apply to assessments for the 2004‑05 income year and later income years.

(3)       Subsections 51‑32(1) and (4) and 51‑33(1) of the Income Tax Assessment Act 1997, substituted by item 10 of this Schedule, apply to assessments for the 1996‑97 income year and later income years.

15  Amendment of assessments

Section 170 of the Income Tax Assessment Act 1936 does not prevent the amendment of an assessment made before the commencement of this item for the purposes of giving effect to subsections 51‑32(1) and (4) and 51‑33(1) of the Income Tax Assessment Act 1997 substituted by item 10 of this Schedule.

 

Family Assistance Legislation Amendment (More Help for Families—Increased Payments) Act 2004 (No. 59, 2004)

Schedule 2

38  Application of amendment of section 52‑150

The amendment of section 52‑150 of the Income Tax Assessment Act 1997 made by this Division applies to assessments for the 2004‑05 income year and later income years.

42  Application of amendments of Division 61

The amendments of Division 61 of the Income Tax Assessment Act 1997 made by this Division apply to assessments for the 2001‑02 income year and later income years.

 

Bankruptcy Legislation Amendment Act 2004 (No. 80, 2004)

Schedule 1

212  Transitional—pre‑commencement deeds and compositions

(1)       For the purposes of this item, if a deed of assignment or a deed of arrangement was executed by a debtor and a trustee under Part X of the Bankruptcy Act 1966 before the commencement of this item, the deed is a pre‑commencement deed.

(2)       For the purposes of this item, if a composition was accepted before the commencement of this item by a special resolution of a meeting of creditors under section 204 of the Bankruptcy Act 1966, the composition is a pre‑commencement composition.

(3)       Despite the repeals and amendments made by Parts 1 and 2 of this Schedule:

                     (a)  the Bankruptcy Act 1966 and regulations under that Act; and

                     (b)  the Acts amended by Part 2 of this Schedule;

continue to apply, in relation to:

                     (c)  a pre‑commencement deed; and

                     (d)  a pre‑commencement composition; and

                     (e)  any matter connected with, or arising out of:

                              (i)  a pre‑commencement deed; or

                             (ii)  a pre‑commencement composition;

as if those repeals had not happened and those amendments had not been made.

213  Transitional—pre‑commencement authorities

(1)       For the purposes of this item, if:

                     (a)  an authority given by a debtor under section 188 of the Bankruptcy Act 1966 became effective before the commencement of this item; and

                     (b)  as at the commencement of this item, none of the following had happened:

                              (i)  the execution by the debtor and the trustee of a deed of assignment under Part X of the Bankruptcy Act 1966;

                             (ii)  the execution by the debtor and the trustee of a deed of arrangement under Part X of the Bankruptcy Act 1966;

                            (iii)  the acceptance of a composition by a special resolution of a meeting of the debtor’s creditors under section 204 of the Bankruptcy Act 1966;

the authority is a pre‑commencement authority.

(2)       Despite the repeals and amendments made by Parts 1 and 2 of this Schedule:

                     (a)  the Bankruptcy Act 1966 and regulations under that Act; and

                     (b)  the Acts amended by Part 2 of this Schedule;

continue to apply, in relation to:

                     (c)  a pre‑commencement authority; and

                     (d)  the control of the debtor’s property following a pre‑commencement authority becoming effective; and

                     (e)  a meeting of the debtor’s creditors called under a pre‑commencement authority; and

                      (f)  whichever of the following is applicable:

                              (i)  a deed of assignment executed after the commencement of this item by the debtor and the trustee under Part X of the Bankruptcy Act 1966 in accordance with a special resolution of such a meeting;

                             (ii)  a deed of arrangement executed after the commencement of this item by the debtor and the trustee under Part X of the Bankruptcy Act 1966 in accordance with a special resolution of such a meeting;

                            (iii)  a composition accepted after the commencement of this item by a special resolution of such a meeting; and

                     (g)  any other matter connected with, or arising out of:

                              (i)  a pre‑commencement authority; or

                             (ii)  a deed of assignment mentioned in subparagraph (f)(i); or

                            (iii)  a deed of arrangement mentioned in subparagraph (f)(ii); or

                            (iv)  a composition mentioned in subparagraph (f)(iii);

as if those repeals had not happened and those amendments had not been made.

215  Transitional—regulations

(1)       The regulations may make provision for matters of a transitional nature arising from the amendments made by Parts 1 and 2 of this Schedule.

(2)       The Governor‑General may make regulations for the purposes of subitem (1).

 

Tax Laws Amendment (2004 Measures No. 2) Act 2004 (No. 83, 2004)

Schedule 1

126  Application

(2)       The amendments made by items 85 to 94 apply in relation to depreciating assets that, apart from the effect of any of those amendments, a life insurance company:

                     (a)  started to hold under a contract entered into after 30 June 2001; or

                     (b)  started to construct after that day; or

                     (c)  started to hold in some other way after that day.

(3)       The amendments made by items 95 to 99 apply in relation to a consolidated group that comes into existence on or after 1 July 2002.

(4)       The amendment made by item 100 applies to assessments for the 2001‑2002 income year and later income years, where the date of the settlement or order (within the meaning of Division 54 of the Income Tax Assessment Act 1997) is 26 September 2001 or a later date.

(5)       The amendments made by items 101 to 104 apply to amounts derived by a life insurance company on or after 1 July 2000.

(8)       The amendment made by item 116 applies to any reinsurance commission received or recovered by a life insurance company at any time after the day on which this Act receives the Royal Assent.

(9)       The amendments made by items 117 to 122 apply to the 2003‑2004 income year and later income years.

(10)     The amendments made by items 123 and 124 apply to the income year in which 30 June 2002 occurs and later income years.

Schedule 2

1  Application

Except as provided otherwise, the amendments made by this Schedule apply on and after 1 July 2002.

6  Application

The amendment made by this Schedule to subsection 124‑380(7) of the Income Tax Assessment Act 1997 applies to choices made after the commencement of this item.

37  Application

The amendments made by this Part apply for assessments for the year of income including 1 July 2002 and later years of income.

53  Application of amendment of subparagraph 717‑15(1)(b)(i)

The amendment of subparagraph 717‑15(1)(b)(i) of the Income Tax Assessment Act 1997 made by this Division applies to consolidated groups that come into existence on or after 1 July 2004.

64  Application

The amendments made by this Part apply to assessments for the 1998‑99 income year and later income years.

Schedule 3

6  Application

The amendments made by this Schedule apply to things done on or after 2 December 2003.

7  Transitional

(1)       This item applies to a limited partnership:

                     (a)  that was formed as a legal entity on or after 2 December 2003 and before the day on which this Act received the Royal Assent; and

                     (b)  in respect of which an application has been made to the PDF Board for registration as a VCLP or an AFOF under the Venture Capital Act 2002; and

                     (c)  that could not be registered or conditionally registered as a VCLP or an AFOF before the day on which this Act received the Royal Assent only because it has a legal personality separate from that of its members.

(2)       If the PDF Board decided, before the day on which this Act received the Royal Assent, that it would have registered or conditionally registered a limited partnership to which this item applies as a VCLP or an AFOF under the Venture Capital Act 2002 had this Act received the Royal Assent before that decision was made:

                     (a)  the PDF Board is taken to have granted registration or conditional registration of the limited partnership as a VCLP or an AFOF under that Act on the day on which that decision was made; and

                     (b)  that registration is taken to have been in force for the purposes of section 13‑10 of that Act from that day.

Schedule 5

2  Application

The amendment made by this Schedule applies to shares or units acquired under a demerger on or after 1 July 2002.

Schedule 6

4  Application

The amendments made by this Schedule apply to amounts paid on or after 1 July 2003.

Schedule 8

11  Application

The amendments made by items 9 and 10 apply to gifts made on or after 1 April 2004.

Schedule 10

43  Application provisions

(2)       Subject to the rules on the application of Part 3‑6 of the Income Tax Assessment Act 1997 set out in the Income Tax (Transitional Provisions) Act 1997, the amendments made by the following items of this Schedule apply to events that occur on or after 1 July 2002:

                     (a)  items 3 to 23;

                     (b)  item 29;

                     (c)  item 41.

(3)       The amendments made by items 24 to 28 of this Schedule apply to assessments for the 2003‑04 income year and later income years.

(4)       Subject to the rules on the application of Part 3‑6 of the Income Tax Assessment Act 1997 set out in the Income Tax (Transitional Provisions) Act 1997, the amendments made by the following items of this Schedule apply in relation to things happening on or after 1 April 2003:

                     (a)  items 30 to 40;

                     (b)  item 42.

44  Transitional provision

            Subparagraph 207‑110(1)(b)(ii) of the Income Tax Assessment Act 1997 as amended by item 29 of this Schedule has effect during the period starting on 1 July 2002 and ending just before the start of the 2003‑04 income year as if the reference in that subparagraph to an amount being non‑assessable non‑exempt income were a reference to the amount being neither assessable income nor exempt income.

Schedule 12

9  Application

The amendments made by this Part apply to assessments for the 2000‑2001 income year and each subsequent income year.

16  Application

The amendments made by this Part apply to assessments for the income year after the income year in which this Act receives the Royal Assent and each subsequent income year.

 

Superannuation Laws Amendment (2004 Measures No. 1) Act 2004
(No. 92, 2004)

Schedule 1

3  Application of item 2

The amendment made by item 2 of this Schedule applies to assessments for the 2004‑2005 income year and for subsequent income years.

 

Superannuation Laws Amendment (2004 Measures No. 2) Act 2004
(No. 93, 2004)

4  Application of amendments

             (1)  The amendment made by item 3 of Schedule 1 applies to assessments for the 2004‑2005 income year and for subsequent income years.

 

Tax Laws Amendment (2004 Measures No. 1) Act 2004 (No. 95, 2004)

Schedule 2

11  Application

The amendments made by this Schedule apply to assessments for the 2001‑2002 income year and each later income year.

Schedule 3

7  Application of amendments

The amendments made by this Schedule apply to CGT events happening after 11.45 am, by legal time in the Australian Capital Territory, on 21 September 1999.

8  Transitional: general

(1)       In this item and in item 9:

assent day means the day on which this Act receives the Royal Assent.

(2)       The subsection 152‑30(5) of the Income Tax Assessment Act 1997 inserted by this Schedule applies to assessments for the 1999‑2000, 2000‑01 and 2001‑02 income years as if the reference to any of the 4 income years before the income year for which relief is sought for a CGT event under Division 152 of that Act were a reference to the income year for which that relief is sought.

(3)       The following subitems apply in relation to:

                     (a)  a CGT event that happened before the assent day; and

                     (b)  an entity who becomes eligible to make a choice under Division 152 of the Income Tax Assessment Act 1997 in relation to that event because of this Schedule.

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

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

                     (b)  12 months after the assent day; and

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

(5)       The period within which the entity must acquire a replacement asset as mentioned in subsection 152‑420(1) or (2) of the Income Tax Assessment Act 1997 ends on the latest of:

                     (a)  2 years after the happening of the last CGT event in the income year for which the entity obtained the small business roll‑over; and

                     (b)  12 months after the assent day; and

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

(6)       The period within which a replacement asset the entity acquires must be an active asset as mentioned in subsection 152‑420(4) of the Income Tax Assessment Act 1997 (if it is not an active asset when acquired) ends on the latest of:

                     (a)  2 years after the happening of the last CGT event in the income year for which the entity obtained the small business roll‑over; and

                     (b)  12 months after the assent day; and

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

9  Transitional: choice

(1)       This item applies to CGT events that happen no later than the end of the 2003‑04 income year.

(2)       Subject to subitem (3), an entity can choose that Division 152 of the Income Tax Assessment Act 1997 apply to such a CGT event as if the amendments made by this Schedule had not been made.

(3)       However, subsection 152‑30(6) inserted by item 4 of this Schedule applies to those CGT events.

(4)       A choice under this item must be made by the latest of:

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

                     (b)  12 months after the assent day; and

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

Schedule 5

9  Application

The amendments made by this Schedule apply to CGT events that happen after the end of the day the Bill for this Act was introduced into the Parliament.

Schedule 7

13  Application of amendments

The amendments made by this Schedule apply in relation to contributions made on or after 1 July 2004.

Schedule 10

44  Transitional—GST and FBT endorsements

(1)       This item applies in relation to an entity if:

                     (a)  immediately before 1 July 2005, the entity was endorsed under section 30‑120 or section 50‑105 of the Income Tax Assessment Act 1997; and

                     (b)  the entity failed to notify the Commissioner in writing before 1 July 2005 that it chose not to have this item apply to it.

(2)       The entity is taken to have made an application to the Commissioner under section 426‑15 in Schedule 1 to the Taxation Administration Act 1953 for whichever of these kinds of endorsement is most appropriate for the entity:

                     (a)  endorsement as a charitable institution under subsection 176‑1(1) of the A New Tax System (Goods and Services Tax) Act 1999;

                     (b)  endorsement as a trustee of a charitable fund under subsection 176‑5(1) of the A New Tax System (Goods and Services Tax) Act 1999.

(3)       The entity is taken to have made an application to the Commissioner under section 426‑15 in Schedule 1 to the Taxation Administration Act 1953 for whichever of these kinds of endorsement is most appropriate for the entity:

                     (a)  endorsement as a public benevolent institution under subsection 123C(1) of the Fringe Benefits Tax Assessment Act 1986;

                     (b)  endorsement for the operation of a public benevolent institution under subsection 123C(3) of the Fringe Benefits Tax Assessment Act 1986;

                     (c)  endorsement as a health promotion charity under subsection 123D(1) of the Fringe Benefits Tax Assessment Act 1986;

                     (d)  endorsement under subsection 123E(1) of the Fringe Benefits Tax Assessment Act 1986 as a charitable institution covered by paragraph 65J(1)(baa) of that Act.

45  Transitional—acts or things done before commencement under repealed endorsement provisions

(1)       In this item:

repealed provision means any of these provisions (as in force immediately before the commencement of this item):

                     (a)  sections 30‑130 to 30‑175 of the Income Tax Assessment Act 1997;

                     (b)  sections 50‑115 to 50‑160 of that Act.

(2)       This item applies to an act or thing if:

                     (a)  the act or thing was done before the commencement of this item; and

                     (b)  the act or thing was done under, or for the purposes of, a repealed provision.

(3)       The act or thing has effect, after the commencement of this item, as if it had been done under, or for the purposes of, the corresponding provision of the Taxation Administration Act 1953 (as in force on and after the commencement of this item).

 

New International Tax Arrangements (Participation Exemption and Other Measures) Act 2004 (No. 96, 2004)

Schedule 1

1  Application

The amendments made by this Schedule apply in relation to a CGT event happening on or after 1 April 2004.

Schedule 2

140  Application of amendments

(2)       Subject to subitem (2A), the amendments made by Parts 2 and 3 of this Schedule apply to things happening after 30 June 2004.

(3)       The amendments made by Parts 4 and 5 of this Schedule apply to income years and statutory accounting periods starting on or after 1 July 2004.

 

Taxation Laws Amendment Act (No. 1) 2004 (No. 101, 2004)

Schedule 1

4  Application of amendments

The amendments made by this Schedule apply to assessments for the 2001‑2002 income year and later income years.

Schedule 3

72  Transitional—Division 30 of the Income Tax Assessment Act 1997

(1)       Despite the amendments made by this Schedule, Division 30 of the Income Tax Assessment Act 1997 continues to apply, in relation to gifts made before 1 July 2003, as if those amendments had not been made.

(2)       Despite the amendments made by this Schedule, Subdivision 30DE of the Income Tax Assessment Act 1997 continues to apply, in relation to covenants entered into under Division 31 of that Act before 1 July 2003, as if those amendments had not been made.

Schedule 7

8  Application

Subject to the rules on the application of Part 3‑6 of the Income Tax Assessment Act 1997 set out in the Income Tax (Transitional Provisions) Act 1997, the amendments made by items 1 to 7 apply to events that occur on or after 1 July 2002.

Schedule 9

17  Application of amendments

The amendments made by this Schedule apply to CGT events happening on or after 11 March 2002.

Schedule 11

143  Application

The amendment of section 43‑55 of the Income Tax Assessment Act 1997 made by this Part applies in relation to the income year including 1 July 2001 and later income years.

145  Application

The amendment of section 208‑145 of the Income Tax Assessment Act 1997 made by this Part applies in relation to income years ending on or after 1 July 2002.

 

Tax Laws Amendment (2004 Measures No. 3) Act 2004 (No. 105, 2004)

Schedule 1

19  Application

The amendments made by this Schedule apply, and are taken to have applied, to CGT events relating to investments made on or after 1 July 2002.

 

Tax Laws Amendment (Wine Producer Rebate and Other Measures) Act 2004 (No. 129, 2004)

Schedule 3

25  Application

The amendments made by this Schedule do not apply to a grapevine:

                     (a)  for which an entity has satisfied a condition in subsection 40‑525(3) of the Income Tax Assessment Act 1997 (as in force immediately before the commencement of this Schedule) before 1 October 2004; and

                     (b)  that the entity first used in a primary production business for the purpose of producing assessable income before 1 October 2004; and

                     (c)  for which the entity has deducted or can deduct an amount worked out under section 40‑550 of that Act (as so in force).

 

Family and Community Services and Veterans’ Affairs Legislation Amendment (2004 Election Commitments) Act 2004
(No. 132, 2004)

Schedule 2

13  Special payment of seniors concession allowance in December 2004

(1)       In this item:

1 December test day means the seniors concession allowance test day that occurs on 1 December 2004.

Administration Act means the Social Security (Administration) Act 1999 as amended by this Schedule and Schedule 1 to this Act.

seniors concession allowance means seniors concession allowance under Part 2.25B of the Act.

seniors concession allowance test day has the meaning given by subsection 1061UA(3) of the Act.

social security law means the social security law (within the meaning of subsection 23(17) of the Act) as amended by this Schedule and Schedule 1 to this Act.

the Act means the Social Security Act 1991 as amended by this Schedule and Schedule 1 to this Act.

transitional day means a day in December 2004 (other than 1 December 2004).

Veterans’ Entitlements Act means the Veterans’ Entitlements Act 1986 as amended by this Schedule and Schedule 1 to this Act.

(2)       Transitional seniors concession allowance is payable under this item to a person in relation to the transitional day if:

                     (a)  seniors concession allowance would be payable to the person under section 1061UA of the Act in relation to the transitional day if that day were a seniors concession allowance test day; and

                     (b)  seniors concession allowance was not payable to the person under section 1061UA of the Act in relation to the 1 December test day.

(3)       Transitional seniors concession allowance is payable only once in relation to December 2004.

(4)       If transitional seniors concession allowance is payable to a person in relation to the transitional day, the person is to be paid an instalment of the allowance as soon as is reasonably practicable on or after the transitional day. The amount of the instalment is $100.

(5)       For the purposes of the social security law, the Veterans’ Entitlements Act and the Income Tax Assessment Act 1997:

                     (a)  transitional seniors concession allowance payable under this item in relation to the transitional day is to be treated as if it were seniors concession allowance payable under Part 2.25B of the Act in relation to the 1 December test day; and

                     (b)  an instalment of transitional seniors concession allowance paid under this item in relation to the transitional day is to be treated as if it were a payment of an instalment of seniors concession allowance under section 49B of the Administration Act in relation to the 1 December test day.

(6)       The Consolidated Revenue Fund is appropriated for the purposes of this item.

24  Special payment of seniors concession allowance in December 2004

(1)       In this item:

1 December test day means the seniors concession allowance test day that occurs on 1 December 2004.

seniors concession allowance means seniors concession allowance under Part VIIAD of the Act.

seniors concession allowance test day has the meaning given by section 118P of the Act.

Social Security Act means the Social Security Act 1991 as amended by this Schedule and Schedule 1 to this Act.

social security law means the social security law (within the meaning of subsection 23(17) of the Social Security Act) as amended by this Schedule and Schedule 1 to this Act.

the Act means the Veterans’ Entitlements Act 1986 as amended by this Schedule and Schedule 1 to this Act.

transitional day means a day in December 2004 (other than 1 December 2004).

(2)       Transitional seniors concession allowance is payable under this item to a person in relation to the transitional day if:

                     (a)  seniors concession allowance would be payable to the person under section 118PB of the Act in relation to the transitional day if that day had been a seniors concession allowance test day; and

                     (b)  seniors concession allowance was not payable to the person under section 118PB of the Act in relation to the 1 December test day.

(3)       Transitional seniors concession allowance is payable only once in relation to December 2004.

(4)       If transitional seniors concession allowance is payable to a person in relation to the transitional day, the person is to be paid an instalment of the allowance as soon as is reasonably practicable on or after the transitional day. The amount of the instalment is $100.

(5)       For the purposes of the Act, the social security law and the Income Tax Assessment Act 1997:

                     (a)  transitional seniors concession allowance payable under this item in relation to the transitional day is to be treated as if it were seniors concession allowance payable under Part VIIAD of the Act in relation to the 1 December test day; and

                     (b)  an instalment of transitional seniors concession allowance paid under this item in relation to the transitional day is to be treated as if it were a payment of an instalment of seniors concession allowance under Part VIIAD of the Act in relation to the 1 December test day.

(6)       The Consolidated Revenue Fund is appropriated for the purposes of this item.

 

Private Health Insurance Incentives Amendment Act 2005 (No. 9, 2005)

Schedule 1

7  Application of amendments

The amendments made by this Schedule apply to amounts of premium, and amounts in respect of premium, paid or payable in respect of a period beginning on or after 1 April 2005.

 

New International Tax Arrangements (Managed Funds and Other Measures) Act 2005 (No. 21, 2005)

Schedule 1

7  Application

(1)       The amendments made by items 1 to 3, and 5 and 6, of this Schedule apply to capital gains or capital losses made on or after the day on which this Act receives the Royal Assent.

(2)       The amendment made by item 4 of this Schedule applies to payments made on or after the day on which this Act receives the Royal Assent.

Schedule 3

47  Application

(1)       The amendments made by Part 1 of this Schedule apply to interest paid on debentures or debt interests issued on or after the day on which this Act receives the Royal Assent (the Assent day).

 

Tax Laws Amendment (2004 Measures No. 6) Act 2005 (No. 23, 2005)

Schedule 1

1  Application

Except as provided otherwise, the amendments made by this Schedule apply on and after 1 July 2002.