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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. 3) 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. 3) Bill
2014
i
Contents
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 1
3
Schedule(s) ........................................................................................ 2
Schedule 1--Capital allowances
3
Part 1--Amendments
3
Income Tax Assessment Act 1997
3
Part 2--Application of amendments
9
No. , 2014
Tax and Superannuation Laws Amendment (2014 Measures No. 3) 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. 3) Act 2014.
6
2 Commencement
7
This Act commences on the day after this Act receives the Royal
8
Assent.
9
2
Tax and Superannuation Laws Amendment (2014 Measures No. 3) Bill
2014
No. , 2014
3 Schedule(s)
1
Each Act that is specified in a Schedule to this Act is amended or
2
repealed as set out in the applicable items in the Schedule
3
concerned, and any other item in a Schedule to this Act has effect
4
according to its terms.
5
Capital allowances Schedule 1
Amendments Part 1
No. , 2014
Tax and Superannuation Laws Amendment (2014 Measures No. 3) Bill
2014
3
Schedule 1
--Capital allowances
1
Part 1
--Amendments
2
Income Tax Assessment Act 1997
3
1 At the end of subsection 40-80(1)
4
Add:
5
; and (d) in a case where the asset is a
*
mining, quarrying or
6
prospecting right--you acquired the asset from an
7
*
Australian government agency or a
*
government entity; and
8
(e) in a case where the asset is
*
mining, quarrying or prospecting
9
information:
10
(i) you acquired the asset from an Australian government
11
agency or a government entity; or
12
(ii) the asset is a geophysical or geological data package
13
you acquired from an entity to which subsection (1AA)
14
applies; or
15
(iii) you created the asset, or contributed to the cost of its
16
creation; or
17
(iv) you caused the asset to be created, or contributed to the
18
cost of it being created, by an entity to which
19
subsection (1AA) applies.
20
2 After subsection 40-80(1)
21
Insert:
22
(1AA) This subsection applies to an entity if, at the time of the acquisition
23
referred to in subparagraph (1)(e)(ii) or the creation referred to in
24
subparagraph (1)(e)(iv), the entity predominantly carries on a
25
*
business of providing
*
mining, quarrying or prospecting
26
information to other entities that:
27
(a) carry on
*
mining and quarrying operations; or
28
(b) it would be reasonable to conclude propose to carry on such
29
operations; or
30
Schedule 1 Capital allowances
Part 1 Amendments
4
Tax and Superannuation Laws Amendment (2014 Measures No. 3) Bill
2014
No. , 2014
(c) carry on a business of, or a business that included,
1
*
exploration or prospecting for
*
minerals or quarry materials
2
obtainable by such operations.
3
(1AB) If an amount is included in the second element of the
*
cost of a
4
*
depreciating asset, subsection (1) applies in relation to that
5
amount only if:
6
(a) your first use of the asset, after the inclusion of the amount in
7
the second element, is for
*
exploration or prospecting for
8
*
minerals, or quarry materials, obtainable by
*
mining and
9
quarrying operations; and
10
(b) at the time of that first use:
11
(i) you satisfy paragraph (1)(b) as if that first use was your
12
first use of the asset; and
13
(ii) you satisfy paragraph (1)(c) as if the time of that first
14
use was the asset's
*
start time; and
15
(c) if the amount relates to a
*
mining, quarrying or prospecting
16
right--after the inclusion of the amount in the second
17
element, you satisfy paragraph (1)(d) in relation to the right;
18
and
19
(d) if the amount relates to
*
mining, quarrying or prospecting
20
information--after the inclusion of the amount in the second
21
element, you satisfy paragraph (1)(e) in relation to the
22
information.
23
(1AC) If subsection (1) does not apply to a
*
depreciating asset:
24
(a) the fact that subsection (1) does not apply to the asset does
25
not prevent the application of subsection (1AB) to an amount
26
included in the second element of the
*
cost of the asset; but
27
(b) subsection (1) only affects the asset's decline in value to the
28
extent that the asset's cost consists of that amount.
29
3 Subsection 40-95(10)
30
Repeal the subsection, substitute:
31
Exceptions: mining, quarrying or prospecting rights and mining,
32
quarrying or prospecting information
33
(10) Subject to subsection (12), the effective life of:
34
(a) a
*
mining, quarrying or prospecting right; or
35
Capital allowances Schedule 1
Amendments Part 1
No. , 2014
Tax and Superannuation Laws Amendment (2014 Measures No. 3) Bill
2014
5
(b)
*
mining, quarrying or prospecting information;
1
is the period you work out yourself by estimating the period (in
2
years, including fractions of years) set out in column 2 of this
3
table:
4
5
Effective life of certain mining, quarrying or prospecting rights and mining,
quarrying or prospecting information
Item
Column 1
For this asset:
Column 2
Estimate the period until the end
of:
1
A
*
mining, quarrying or prospecting
right, or
*
mining, quarrying or
prospecting information, relating to
*
mining and quarrying operations
(except obtaining
*
petroleum or
quarry materials)
The life of the mine or proposed
mine to which the right or
information relates or, if there is
more than one, the life of the mine
that has the longest estimated life
2
A
*
mining, quarrying or prospecting
right, or
*
mining, quarrying or
prospecting information, relating to
*
mining and quarrying operations to
obtain
*
petroleum
The life of the petroleum field or
proposed petroleum field to which
the right or information relates or, if
there is more than one, the life of the
petroleum field that has the longest
estimated life
3
A
*
mining, quarrying or prospecting
right, or
*
mining, quarrying or
prospecting information, relating to
*
mining and quarrying operations to
obtain quarry materials
The life of the quarry or proposed
quarry to which the right or
information relates or, if there is
more than one, the life of the quarry
that has the longest estimated life
(10A) However, if the only reason that subsection 40-80(1) does not
6
apply to the
*
mining, quarrying or prospecting right, or
*
mining,
7
quarrying or prospecting information, is that the right or
8
information does not meet the requirements of
9
paragraph 40-80(1)(d) or (e), the effective life of the right or
10
information is the shorter of:
11
(a) the period that would, apart from this subsection, be the
12
effective life of the information or right under
13
subsection (10); and
14
(b) 15 years.
15
Schedule 1 Capital allowances
Part 1 Amendments
6
Tax and Superannuation Laws Amendment (2014 Measures No. 3) Bill
2014
No. , 2014
4 Paragraph 40-95(11)(a)
1
After "right", insert "or
*
mining, quarrying or prospecting information".
2
5 At the end of section 40-95
3
Add:
4
(12) The effective life of a
*
mining, quarrying or prospecting right, or
5
*
mining, quarrying or prospecting information, is 15 years if the
6
right or information does not relate to:
7
(a) a mine or proposed mine; or
8
(b) a petroleum field or proposed petroleum field; or
9
(c) a quarry or proposed quarry.
10
6 At the end of subsection 40-105(4)
11
Add:
12
; (c)
*
mining, quarrying or prospecting information.
13
7 At the end of subsection 40-110(3A)
14
Add "or
*
mining, quarrying or prospecting information".
15
8 Subsection 40-110(3B)
16
Repeal the subsection, substitute:
17
(3B) You may choose to recalculate the
*
effective life of a
*
mining,
18
quarrying or prospecting right, or
*
mining, quarrying or
19
prospecting information, from a later income year if the effective
20
life you have been using is no longer accurate:
21
(a) because of changed circumstances relating to an existing or
22
proposed mine, petroleum field or quarry to which that right
23
or information relates; or
24
(b) because that right or information now relates to an existing or
25
proposed mine, petroleum field or quarry; or
26
(c) because that right or information no longer relates to an
27
existing or proposed mine, petroleum field or quarry.
28
9 Paragraph 40-110(4)(b)
29
Repeal the paragraph, substitute:
30
Capital allowances Schedule 1
Amendments Part 1
No. , 2014
Tax and Superannuation Laws Amendment (2014 Measures No. 3) Bill
2014
7
(b) if the
*
depreciating asset is a
*
mining, quarrying or
1
prospecting right or
*
mining, quarrying or prospecting
2
information:
3
(i) subsections 40-95(10) and (11) (if the right or
4
information relates to an existing or proposed mine,
5
petroleum field or quarry); or
6
(ii) subsection 40-95(12) (if the right or information no
7
longer relates to an existing or proposed mine,
8
petroleum field or quarry).
9
10 Subsection 40-180(1)
10
Omit "item 3 or 4", substitute "item 3, 4 or 14".
11
11 Subsection 40-180(2) (at the end of the table)
12
Add:
13
14
A
*
balancing adjustment event happens to a
*
depreciating asset you
*
hold because of
subsection 40-295(1B)
What would, apart from
subsection 40-285(3), be
the asset's
*
adjustable
value on the day the
*
balancing adjustment
event occurs
12 Subsection 40-285(4)
14
Omit "item 3 or 4", substitute "item 3, 4 or 14".
15
13 Subsection 40-285(4) (note)
16
Omit "because you still hold an asset you expected not to use",
17
substitute "even though you still hold the asset in question".
18
14 After subsection 40-295(1)
19
Insert:
20
(1A) A balancing adjustment event occurs for a
*
depreciating asset you
21
*
hold that is a
*
mining, quarrying or prospecting right, or
*
mining,
22
quarrying or prospecting information, if:
23
(a) the only reason that subsection 40-80(1) does not apply to the
24
right or information is that the right or information does not
25
meet the requirements of paragraph 40-80(1)(d) or (e); and
26
Schedule 1 Capital allowances
Part 1 Amendments
8
Tax and Superannuation Laws Amendment (2014 Measures No. 3) Bill
2014
No. , 2014
(b) you have neither budgeted nor planned for further
1
expenditure that:
2
(i) will relate to the tenement to which the right or
3
information relates; and
4
(ii) will exceed the minimum expenditure required to
5
maintain the tenement; and
6
(c) you choose to apply this subsection to the right or
7
information.
8
(1B) A balancing adjustment event occurs for a
*
depreciating asset you
9
*
hold that is a
*
mining, quarrying or prospecting right, or
*
mining,
10
quarrying or prospecting information, if:
11
(a) since the last time you commenced to hold the right or
12
information, a
*
balancing adjustment event occurred, because
13
of subsection (1A), to the right or information; and
14
(b) paragraph (1A)(b) no longer applies.
15
15 Subsection 40-300(2) (at the end of the table)
16
Add:
17
13
The
*
balancing adjustment event occurs
under subsection 40-295(1A)
Zero
14
The
*
balancing adjustment event occurs
under subsection 40-295(1B)
What would, apart from
subsection 40-285(3), be the
asset's
*
adjustable value on
the day the
*
balancing
adjustment event occurs
Capital allowances Schedule 1
Application of amendments Part 2
No. , 2014
Tax and Superannuation Laws Amendment (2014 Measures No. 3) Bill
2014
9
Part 2
--Application of amendments
1
16 Application of amendments
2
(1)
The amendments made by this Schedule apply to any mining, quarrying
3
or prospecting right, and any mining, quarrying or prospecting
4
information, that an entity starts to hold after 7.30 pm Australian
5
Eastern Standard Time on 14 May 2013.
6
(2)
However, the amendments made by this Schedule do not apply to a
7
right or information referred to in subitem (1) if:
8
(a) the entity starts to hold the right or information through
9
exercising a right (an acquisition right) to acquire the right
10
or information; and
11
(b) the entity has held the acquisition right continuously since
12
immediately before the time referred to in that subitem; and
13
(c) the terms and conditions for exercising the acquisition right
14
(including the consideration given or to be given for the
15
acquisition right) were agreed before that time.
16