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This is a Bill, not an Act. For current law, see the Acts databases.
2013-2014
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Tax and Superannuation Laws
Amendment (2014 Measures No. 2) Bill
2014
No. , 2014
(Treasury)
A Bill for an Act to amend the law relating to
taxation, and for related purposes
No. , 2014
Tax and Superannuation Laws Amendment (2014 Measures No. 2) Bill
2014
i
Contents
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 1
3
Schedule(s) ........................................................................................ 2
Schedule 1--Medicare levy thresholds
3
Income Tax Assessment Act 1936
3
Medicare Levy Act 1986
3
Schedule 2--Protection for anticipation of certain discontinued
announcements
4
Income Tax Assessment Act 1936
4
Schedule 3--Preventing distribution washing
11
Part 1--Main amendments
11
Income Tax Assessment Act 1997
11
Part 2--Miscellaneous amendments
14
Income Tax Assessment Act 1997
14
No. , 2014
Tax and Superannuation Laws Amendment (2014 Measures No. 2) Bill
2014
1
A Bill for an Act to amend the law relating to
1
taxation, and for related purposes
2
The Parliament of Australia enacts:
3
1 Short title
4
This Act may be cited as the Tax and Superannuation Laws
5
Amendment (2014 Measures No. 2) Act 2014.
6
2 Commencement
7
(1) Each provision of this Act specified in column 1 of the table
8
commences, or is taken to have commenced, in accordance with
9
column 2 of the table. Any other statement in column 2 has effect
10
according to its terms.
11
12
2
Tax and Superannuation Laws Amendment (2014 Measures No. 2) Bill
2014
No. , 2014
Commencement information
Column 1
Column 2
Column 3
Provision(s)
Commencement
Date/Details
1. Sections 1 to 3
and anything in
this Act not
elsewhere covered
by this table
The day this Act receives the Royal Assent.
2. Schedules 1, 2
and 3
The day this Act receives the Royal Assent.
Note:
This table relates only to the provisions of this Act as originally
1
enacted. It will not be amended to deal with any later amendments of
2
this Act.
3
(2) Any information in column 3 of the table is not part of this Act.
4
Information may be inserted in this column, or information in it
5
may be edited, in any published version of this Act.
6
3 Schedule(s)
7
Each Act that is specified in a Schedule to this Act is amended or
8
repealed as set out in the applicable items in the Schedule
9
concerned, and any other item in a Schedule to this Act has effect
10
according to its terms.
11
Medicare levy thresholds Schedule 1
No. , 2014
Tax and Superannuation Laws Amendment (2014 Measures No. 2) Bill
2014
3
Schedule 1
--Medicare levy thresholds
1
2
Income Tax Assessment Act 1936
3
1 Subsection 251R(4)
4
Omit "subsection 159J(1A)", substitute "subsections 159J(1A) and
5
(1F)".
6
Medicare Levy Act 1986
7
2 Subsection 8(5) (definition of family income threshold)
8
Omit "$33,693", substitute "$34,367".
9
3 Subsection 8(5) (definition of family income threshold)
10
Omit "$3,094", substitute "$3,156".
11
4 Subsection 8(5) (definition of family income threshold)
12
Omit "subsection 159J(1A)", substitute "subsections 159J(1A) and
13
(1F)".
14
5 Subsections 8(6) and (7)
15
Omit "$33,693", substitute "$34,367".
16
6 Application of amendments
17
(1)
The amendments made by items 1 and 4 apply to assessments for the
18
2012-13 year of income and later years of income.
19
(2)
The amendments made by items 2, 3 and 5 apply to assessments for the
20
2013-14 year of income and later years of income.
21
Schedule 2 Protection for anticipation of certain discontinued announcements
4
Tax and Superannuation Laws Amendment (2014 Measures No. 2) Bill
2014
No. , 2014
Schedule 2
--Protection for anticipation of
1
certain discontinued announcements
2
3
Income Tax Assessment Act 1936
4
1 Subsection 170(10) (after table item 27)
5
Insert:
6
27A
Subsection 170B(7)
Removal of protection relating to discontinued
announcement because of later inconsistent return
2 After section 170A
7
Insert:
8
170B Protection for anticipation of certain discontinued
9
announcements
10
Limit on amending assessments
11
(1) The Commissioner cannot amend an assessment of a taxpayer
12
about a particular in a way that would produce a less favourable
13
result for the taxpayer if:
14
(a) the taxpayer has anticipated amendments (see
15
subsection (3)); and
16
(b) in making the assessment, the particular was ascertained on
17
the basis of the taxpayer's anticipated amendments having
18
been made; and
19
(c) that way of amending the assessment would instead ascertain
20
the particular on the basis of the anticipated amendments not
21
having been made.
22
Anticipation not to give rise to administrative overpayment
23
(2) If ascertaining that particular on the basis of the taxpayer's
24
anticipated amendments not having been made:
25
(a) would not result in an amendment of the assessment; but
26
(b) would, apart from this subsection, result in an amount the
27
Commissioner paid to the taxpayer on the basis of the
28
Protection for anticipation of certain discontinued announcements Schedule 2
No. , 2014
Tax and Superannuation Laws Amendment (2014 Measures No. 2) Bill
2014
5
assessment being an administrative overpayment (within the
1
meaning of section 8AAZN of the Taxation Administration
2
Act 1953);
3
the amount of the administrative overpayment is taken, for the
4
purposes of the taxation law, to be an amount to which the
5
taxpayer is entitled.
6
Meaning of anticipated amendments
7
(3) One or more hypothetical amendments of the taxation law, taken
8
together, are anticipated amendments a taxpayer has if:
9
(a) the amendments, if made, would reasonably reflect an
10
announcement mentioned in the table in subsection (8); and
11
(b) a statement made by or on behalf of the taxpayer:
12
(i) is consistent with the amendments having been made;
13
and
14
(ii) is made in good faith; and
15
(iii) meets the timing requirement in column 2 of an
16
applicable item of the following table.
17
18
Timing requirements for statements
Item
Column 1
In this case:
Column 2
The timing requirement is:
1
The statement is made in a return
lodged on or before 14 December
2013
The return:
(a) is lodged in the period that the
announcement is on foot (see
subsection (8)); and
(b) was not required to be lodged
before the start of that period.
2
The statement is made otherwise
than in a return
The statement is made in the period
that the announcement is on foot.
3
All of the following apply:
(a) the statement is made in a return
of the taxpayer lodged after
14 December 2013;
(b) the return was not required to be
lodged on or before that date;
(c) just before the statement is made,
The statement relates to the
application of the taxation law (as
hypothetically amended by the
amendments) to events or
circumstances:
(a) that happened or existed on or
before 14 December 2013; or
Schedule 2 Protection for anticipation of certain discontinued announcements
6
Tax and Superannuation Laws Amendment (2014 Measures No. 2) Bill
2014
No. , 2014
Timing requirements for statements
Item
Column 1
In this case:
Column 2
The timing requirement is:
no return has been given, and no
assessment has been made, in
relation to the taxpayer in respect
of the year of income to which
the statement relates
(b) to the happening or existence of
which the taxpayer had
definitively committed on or
before 14 December 2013.
1
(4) In determining, for the purpose of paragraph (3)(a), whether
2
amendments would reasonably reflect an announcement, have
3
regard to the following:
4
(a) the terms of the announcement;
5
(b) any related document published after the announcement on
6
behalf of the Commonwealth Government, the Department of
7
the Treasury or the Commissioner;
8
(c) if the announcement proposes to apply to a particular kind of
9
scheme or practice--that kind of scheme or practice;
10
(d) existing provisions of the taxation law, if:
11
(i) the announcement proposes to effect a particular result
12
in relation to the operation of the taxation law; and
13
(ii) those existing provisions effect that result, or a
14
substantially similar result, in relation to another matter;
15
(e) any other relevant matter.
16
Operation of section
17
(5) Subsections (1) and (2) apply despite any other provision of the
18
taxation law, apart from subsections (6) and (7), (which are about
19
exceptions).
20
Exceptions
21
(6) Subsection (1) does not prevent an amendment if:
22
(a) the taxpayer applies for the amendment; or
23
(b) the Commissioner may make the amendment in accordance
24
with item 6 (objection, review or appeal) of the table in
25
subsection 170(1).
26
Protection for anticipation of certain discontinued announcements Schedule 2
No. , 2014
Tax and Superannuation Laws Amendment (2014 Measures No. 2) Bill
2014
7
(7) Subsections (1) and (2) do not apply in relation to a particular
1
ascertained on the basis of a taxpayer's anticipated amendments, in
2
any year of income, if:
3
(a) the taxpayer makes a statement (in a return of income or
4
otherwise) for a later year of income that is not consistent
5
with the taxpayer's anticipated amendments; and
6
(b) if the assessment for the later year of income was to be made
7
on the basis of the taxpayer's anticipated amendments,
8
instead of on the basis of the statement, the result would be
9
less favourable to the taxpayer in that year of income.
10
Note:
An amendment of an assessment can be made at any time to give
11
effect to this subsection (see item 27A of the table in
12
subsection 170(10)).
13
Table of discontinued announcements
14
(8) The following table lists the announcements to which this section
15
applies. An announcement is on foot during the period:
16
(a) starting on the day mentioned in column 2 of the table for the
17
announcement; and
18
(b) ending on 14 December 2013.
19
20
Discontinued announcements
Item
Column 1
Announcement
Column 2
Announcement
date
1
Budget Paper No. 2, Budget Measures 2012-13, Part 1,
topic headed "Bad debts--ensuring consistent
treatment in related party financing arrangements".
8 May 2012
2
Budget Paper No. 2, Budget Measures 2012-13, Part 1,
topic headed "Capital gains tax--refinements to the
income tax law in relation to deceased estates", second
dot point (which is about modifying application dates
for 2 minor changes from the 2011-12 Budget).
8 May 2012
3
The following constitute the announcement:
(a) Media Release No. 137, issued by the then
Assistant Treasurer on 9 October 2011, titled "No
Capital Gains Tax for Properties in Natural Disaster
Land Swap Programs";
9 October 2011
Schedule 2 Protection for anticipation of certain discontinued announcements
8
Tax and Superannuation Laws Amendment (2014 Measures No. 2) Bill
2014
No. , 2014
Discontinued announcements
Item
Column 1
Announcement
Column 2
Announcement
date
(b) Budget Paper No. 2, Budget Measures 2012-13,
Part 1, topic headed "Capital gains tax--
broadening relief for taxpayers affected by natural
disasters".
4
Budget Paper No. 2, Budget Measures 2011-12, Part 1,
topic headed "Income tax relief for water reforms".
10 May 2011
5
Budget Paper No. 2, Budget Measures 2011-12, Part 1,
topic headed "Capital gains tax and other roll-overs for
amalgamations of indigenous corporations".
10 May 2011
6
Budget Paper No. 2, Budget Measures 2011-12, Part 1,
topic headed "Securities lending arrangements tax
rules--extending the scope to address insolvency
issues".
10 May 2011
7
Budget Paper No. 2, Budget Measures 2011-12, Part 1,
topic headed "Capital gains tax--exemption for
incentives related to renewable resources or for
preserving environmental benefits".
10 May 2011
8
Budget Paper No. 2, Budget Measures 2011-12, Part 1,
topic headed "Improvements to the company loss
recoupment rules", but not the sentence stating "This
measure will modify the continuity of ownership test
so that ownership does not need to be traced through
certain superannuation entities.".
10 May 2011
9
Mid-Year Economic and Fiscal Outlook 2010-11,
Appendix A, Part 2, topic headed "Consolidation--
operation of the rules following a demerger".
9 November 2010
10
The following constitute the announcement:
(a) Budget Paper No. 2, Budget Measures 2009-10,
Part 1, topic headed "Uniform capital allowance
regime--technical changes";
(b) Media Release No. 048, issued by the then
Assistant Treasurer on 12 May 2009, Attachment D
headed "Technical changes to uniform capital
allowance regime".
12 May 2009
11
The following constitute the announcement:
8 May 2007
Protection for anticipation of certain discontinued announcements Schedule 2
No. , 2014
Tax and Superannuation Laws Amendment (2014 Measures No. 2) Bill
2014
9
Discontinued announcements
Item
Column 1
Announcement
Column 2
Announcement
date
(a) Budget Paper No. 2, Budget Measures 2007-08,
Part 1, topic headed "Consolidation--further
improvements to the operation of the income tax
law for consolidated groups";
(b) Media Release No. 050, issued by the then Minister
for Revenue and Assistant Treasurer on 8 May
2007, topic headed "Extension of the single entity
rule and entry history rule for certain CGT integrity
provisions affecting third parties".
12
The following constitute the announcement:
(a) Budget Paper No. 2, Budget Measures 2007-08,
Part 1, topic headed "Consolidation--further
improvements to the operation of the income tax
law for consolidated groups";
(b) Media Release No. 050, issued by the then Minister
for Revenue and Assistant Treasurer on 8 May
2007, topic headed "Trusts joining or leaving a
consolidated group or MEC group part way through
an income year".
8 May 2007
13
The following constitute the announcement:
(a) Budget Paper No. 2, Budget Measures 2006-07,
Part 1, topic headed "Simplified imputation
system--franking credits available to life tenants";
(b) Media Release No. 010, issued by the then Minister
for Revenue and Assistant Treasurer on 20 March
2006, titled "Franking credits available to life
tenants".
20 March 2006
(9) In this section:
1
anticipated amendments, in relation to a taxpayer, has the meaning
2
given by subsection (3).
3
on foot, in relation to an announcement, has the meaning given by
4
subsection (8).
5
Schedule 2 Protection for anticipation of certain discontinued announcements
10
Tax and Superannuation Laws Amendment (2014 Measures No. 2) Bill
2014
No. , 2014
taxation law has the meaning given by subsection 995-1(1) of the
1
Income Tax Assessment Act 1997.
2
Preventing distribution washing Schedule 3
Main amendments Part 1
No. , 2014
Tax and Superannuation Laws Amendment (2014 Measures No. 2) Bill
2014
11
Schedule 3
--Preventing distribution washing
1
Part 1
--Main amendments
2
Income Tax Assessment Act 1997
3
1 After paragraph 207-145(1)(d)
4
Insert:
5
(da) the distribution is one to which section 207-157 (which is
6
about distribution washing) applies;
7
2 After paragraph 207-150(1)(e)
8
Insert:
9
(ea) the distribution is one to which section 207-157 (which is
10
about distribution washing) applies;
11
3 After section 207-155
12
Insert:
13
207-157 Distribution washing
14
(1) This section applies to a
*
franked distribution received by a
15
*
member of a
*
corporate tax entity on a
*
membership interest (the
16
washed interest) if:
17
(a) the washed interest was acquired after the member, or a
18
*
connected entity of the member, disposed of a substantially
19
identical membership interest; and
20
(b) a corresponding franked distribution is made to the member,
21
or the connected entity, on the substantially identical interest.
22
Further requirement for connected entities
23
(2) However, if the entity that disposed of the substantially identical
24
interest was a
*
connected entity of the member, this section does
25
not apply to the
*
franked distribution unless:
26
(a) it would be concluded that the disposal took place wholly or
27
partly because there was an expectation that the acquisition
28
would, or would be likely to, take place; or
29
Schedule 3 Preventing distribution washing
Part 1 Main amendments
12
Tax and Superannuation Laws Amendment (2014 Measures No. 2) Bill
2014
No. , 2014
(b) it would be concluded that the acquisition took place wholly
1
or partly because there was a belief that the disposal had
2
taken place.
3
Substantially identical interests
4
(3) Without limiting paragraph (1)(a), for the purpose of that
5
paragraph a
*
membership interest is substantially identical to the
6
washed interest if it is any one or more of the following:
7
(a) fungible with, or economically equivalent to, the washed
8
interest;
9
(b) a membership interest in the same
*
corporate tax entity as the
10
washed interest and of a class that is the same as, or not
11
materially different from, the washed interest;
12
(c) a membership interest in the same corporate tax entity as the
13
washed interest and of a class that is exchangeable at a fixed
14
rate for an interest of the same class as the washed interest;
15
(d) a membership interest in another corporate tax entity that
16
holds predominantly membership interests that are covered
17
by any of the preceding paragraphs;
18
(e) a membership interest in another corporate tax entity that is
19
exchangeable at a fixed rate for interests that are covered by
20
any one or more of paragraphs (a) to (c).
21
Exception for individuals who are small holders
22
(4) Despite subsection (1), this section does not apply to a
*
franked
23
distribution made to an individual in an income year if the sum of
24
the
*
tax offsets to which the individual would be entitled, worked
25
out on the basis mentioned in subsection (5), is $5000 or less.
26
(5) Work out the sum of the
*
tax offsets:
27
(a) disregarding this Subdivision, to the extent it applies to the
28
individual; and
29
(b) not disregarding this Subdivision, to the extent it applies to
30
any other entity through which a
*
franked distribution
*
flows
31
indirectly to the individual.
32
Preventing distribution washing Schedule 3
Main amendments Part 1
No. , 2014
Tax and Superannuation Laws Amendment (2014 Measures No. 2) Bill
2014
13
4 Application
1
The amendments made by this Part apply to distributions made on or
2
after 1 July 2013.
3
Schedule 3 Preventing distribution washing
Part 2 Miscellaneous amendments
14
Tax and Superannuation Laws Amendment (2014 Measures No. 2) Bill
2014
No. , 2014
Part 2
--Miscellaneous amendments
1
Income Tax Assessment Act 1997
2
5 Paragraph 207-95(6)(b)
3
Omit "this Subdivision", substitute "this Division".
4
6 Paragraph 207-145(1)(f)
5
Omit "this Subdivision", substitute "this Division".
6
7 Paragraph 207-150(1)(g)
7
Omit "this Subdivision", substitute "this Division".
8
8 Paragraph 207-150(6)(b)
9
Omit "this Subdivision", substitute "this Division".
10
9 Application
11
Subject to the rules on the application of Part 3-6 of the Income Tax
12
Assessment Act 1997 set out in the Income Tax (Transitional
13
Provisions) Act 1997, the amendments made by this Part apply to events
14
that occur on or after 1 July 2002.
15