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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. 6) Bill
2014
No. , 2014
(Treasury)
A Bill for an Act to amend the law relating to
taxation and grants, and for related purposes
No. , 2014
Tax and Superannuation Laws Amendment (2014 Measures No. 6) Bill
2014
i
Contents
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 1
3
Schedules ........................................................................................... 2
4
Amendment of assessments ............................................................... 2
Schedule 1--Roll-overs for business restructures
4
Part 1--Main amendments
4
Income Tax Assessment Act 1997
4
Part 2--Consequential amendments
15
Income Tax Assessment Act 1936
15
Income Tax Assessment Act 1997
15
Petroleum Resource Rent Tax Assessment Act 1987
18
Taxation Administration Act 1953
18
Part 3--Rights under arrangements
19
Division 1--Disposals by a trust to a company
19
Income Tax Assessment Act 1997
19
Division 2--Transfers between certain trusts
19
Income Tax Assessment Act 1997
19
Part 4--Application and transitional provisions
20
Income Tax (Transitional Provisions) Act 1997
20
Schedule 2--MIT withholding regime for foreign pension funds
23
Income Tax Assessment Act 1997
23
Taxation Administration Act 1953
24
Schedule 3--Income tax exemption for Force Posture
Initiatives
25
Income Tax Assessment Act 1936
25
Schedule 4--Fuel tax credits
26
Fuel Tax Act 2006
26
Schedule 5--Energy Grants (Cleaner Fuels) Scheme
29
ii
Tax and Superannuation Laws Amendment (2014 Measures No. 6) Bill
2014
No. , 2014
Energy Grants (Cleaner Fuels) Scheme Regulations 2004
29
No. , 2014
Tax and Superannuation Laws Amendment (2014 Measures No. 6) Bill
2014
1
A Bill for an Act to amend the law relating to
1
taxation and grants, 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. 6) 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. 6) Bill
2014
No. , 2014
Commencement information
Column 1
Column 2
Column 3
Provisions
Commencement
Date/Details
1. Sections 1 to 4
and anything in
this Act not
elsewhere covered
by this table
The day this Act receives the Royal Assent.
2. Schedules 1 to
3
The day this Act receives the Royal Assent.
3. Schedules 4
and 5
10 November 2014.
10 November
2014
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 Schedules
7
(1) Legislation 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
(2) The amendment of any regulation under subsection (1) does not
12
prevent the regulation, as so amended, from being amended or
13
repealed by the Governor-General.
14
4 Amendment of assessments
15
(1) Section 170 of the Income Tax Assessment Act 1936 does not
16
prevent the amendment of an assessment if:
17
(a) the assessment was made before the commencement of
18
Schedule 1 (about roll-overs for business restructures) to this
19
Act; and
20
(b) the amendment is made for the purpose of giving effect to
21
that Schedule; and
22
No. , 2014
Tax and Superannuation Laws Amendment (2014 Measures No. 6) Bill
2014
3
(c) the amendment is made within 2 years after the day that
1
Schedule commences.
2
(2) Section 170 of the Income Tax Assessment Act 1936 does not
3
prevent the amendment of an assessment if:
4
(a) the assessment was made before the commencement of
5
Schedule 2 (about MIT withholding regime for foreign
6
pension funds) to this Act; and
7
(b) the amendment is made for the purpose of giving effect to
8
that Schedule; and
9
(c) the amendment is made within 2 years after the day that
10
Schedule commences.
11
Schedule 1 Roll-overs for business restructures
Part 1 Main amendments
4
Tax and Superannuation Laws Amendment (2014 Measures No. 6) Bill
2014
No. , 2014
Schedule 1
--Roll-overs for business
1
restructures
2
Part 1
--Main amendments
3
Income Tax Assessment Act 1997
4
1 Before Division 620
5
Insert:
6
Division 615--Roll-overs for business restructures
7
Table of Subdivisions
8
Guide to Division 615
9
615-A Choosing to obtain roll-overs
10
615-B Further requirements for choosing to obtain roll-overs
11
615-C Consequences of roll-overs
12
615-D Consequences for the interposed company
13
Guide to Division 615
14
615-1 What this Division is about
15
You can choose for transactions under a scheme to restructure a
16
company's or unit trust's business to be tax neutral if, under the
17
scheme:
18
(a)
you cease to own shares in the company or units in the
19
trust; and
20
(b)
in exchange, you become the owner of new shares in
21
another company.
22
Subdivision 615-A--Choosing to obtain roll-overs
23
Table of sections
24
615-5
Disposing of interests in one entity for shares in a company
25
Roll-overs for business restructures Schedule 1
Main amendments Part 1
No. , 2014
Tax and Superannuation Laws Amendment (2014 Measures No. 6) Bill
2014
5
615-10
Redeeming or cancelling interests in one entity for shares in a company
1
615-5 Disposing of interests in one entity for shares in a company
2
(1) You can choose to obtain a roll-over if:
3
(a) you are a
*
member of a company or a unit trust (the original
4
entity); and
5
(b) you and at least one other entity (the exchanging members)
6
own all the
*
shares or units in it; and
7
(c) under a
*
scheme for reorganising its affairs, the exchanging
8
members
*
dispose of all their shares or units in it to a
9
company (the interposed company) in exchange for shares in
10
the interposed company (and nothing else); and
11
(d) the requirements in Subdivision 615-B are satisfied.
12
Note 1:
For paragraph (c), see section 124-20 if an exchanging member uses a
13
share sale facility.
14
Note 2:
After the completion of the scheme, later dealings between the
15
interposed company and the original entity may be subject to the rules
16
for consolidated groups (see Part 3-90).
17
(2) You are taken to have chosen to obtain the roll-over if:
18
(a) immediately before the completion time (see section 615-15),
19
the original entity is the
*
head company of a
*
consolidated
20
group; and
21
(b) immediately after the completion time, the interposed
22
company is the head company of the group.
23
Note:
The consolidated group continues in existence because of
24
section 703-70.
25
615-10 Redeeming or cancelling interests in one entity for shares in
26
a company
27
(1) You can choose to obtain a roll-over if you are a
*
member of a
28
company or a unit trust (the original entity), and under a
*
scheme
29
for reorganising its affairs:
30
(a) a company (the interposed company)
*
acquires no more than
31
5
*
shares or units in the original entity; and
32
(b) these are the first shares or units that the interposed company
33
acquires in the original entity; and
34
Schedule 1 Roll-overs for business restructures
Part 1 Main amendments
6
Tax and Superannuation Laws Amendment (2014 Measures No. 6) Bill
2014
No. , 2014
(c) you and at least one other entity (the exchanging members)
1
own all the remaining shares or units in the original entity;
2
and
3
(d) those remaining shares or units are redeemed or cancelled;
4
and
5
(e) each exchanging member receives shares (and nothing else)
6
in the interposed company in return for their shares or units
7
in the original entity being redeemed or cancelled;
8
and the requirements in Subdivision 615-B are satisfied.
9
Note:
For paragraph (e), see section 124-20 if an exchanging member uses a
10
share sale facility.
11
(2) You are taken to have chosen to obtain the roll-over if:
12
(a) immediately before the completion time (see section 615-15),
13
the original entity is the
*
head company of a
*
consolidated
14
group; and
15
(b) immediately after the completion time, the interposed
16
company is the head company of the group.
17
Note:
The consolidated group continues in existence because of
18
section 703-70.
19
(3) The original entity, or its trustee if it is a unit trust, can issue other
20
*
shares or units to the interposed company as part of the
*
scheme.
21
Note:
Some of the interposed company's shares or units in the original entity
22
may be taken to be acquired before 20 September 1985: see
23
section 615-65.
24
Subdivision 615-B--Further requirements for choosing to
25
obtain roll-overs
26
Table of sections
27
615-15
Interposed company must own all the original interests
28
615-20
Requirements relating to your interests in the original entity
29
615-25
Requirements relating to the interposed company
30
615-30
Interposed company must make a particular choice
31
615-35
ADI restructures--disregard certain preference shares
32
Roll-overs for business restructures Schedule 1
Main amendments Part 1
No. , 2014
Tax and Superannuation Laws Amendment (2014 Measures No. 6) Bill
2014
7
615-15 Interposed company must own all the original interests
1
The interposed company must own all the
*
shares or units in the
2
original entity immediately after the time (the completion time) all
3
the exchanging members have had their shares or units in the
4
original entity disposed of, redeemed or cancelled under the
5
*
scheme.
6
615-20 Requirements relating to your interests in the original entity
7
(1) Immediately after the completion time, each exchanging member
8
must own:
9
(a) a whole number of
*
shares in the interposed company; and
10
(b) a percentage of the shares in the interposed company that
11
were issued to all the exchanging members that is equal to
12
the percentage of the shares or units in the original entity that
13
were:
14
(i) owned by the member; and
15
(ii) disposed of, redeemed or cancelled under the
*
scheme.
16
(2) The following ratios must be equal:
17
(a) the ratio of:
18
(i) the
*
market value of each exchanging member's
*
shares
19
in the interposed company; to
20
(ii) the market value of the shares in the interposed
21
company issued to all the exchanging members (worked
22
out immediately after the completion time);
23
(b) the ratio of:
24
(i) the market value of that member's shares or units in the
25
original entity that were disposed of, redeemed or
26
cancelled under the
*
scheme; to
27
(ii) the market value of all the shares or units in the original
28
entity that were disposed of, redeemed or cancelled
29
under the scheme (worked out immediately before the
30
first disposal, redemption or cancellation).
31
Example 1: There are 100 shares in A Pty Ltd (the original entity), all having the
32
same rights. B Pty Ltd (the interposed company) acquires all the
33
shares in A by issuing each shareholder in A 10 shares in itself for
34
each share they have in A. All shares in B have the same rights. Bill
35
owned 15 shares in A and received 150 shares in B in exchange.
36
Schedule 1 Roll-overs for business restructures
Part 1 Main amendments
8
Tax and Superannuation Laws Amendment (2014 Measures No. 6) Bill
2014
No. , 2014
Example 2: There are 1,000 units in the A unit trust (the original entity), all having
1
the same rights. 2 new units in A are issued to B Pty Ltd (the
2
interposed company), and all other units in A are cancelled. Each
3
unitholder in A is issued 10 shares in B for each 100 units they have in
4
A. All shares in B have the same rights. Alison owned 200 units in A
5
and received 20 shares in B in exchange.
6
(3) Either:
7
(a) you are an Australian resident at the time your
*
shares or
8
units in the original entity are disposed of, redeemed or
9
cancelled under the
*
scheme; or
10
(b) if you are a foreign resident at that time:
11
(i) your shares or units in the original entity were
*
taxable
12
Australian property immediately before that time; and
13
(ii) your shares in the interposed company are taxable
14
Australian property immediately after the completion
15
time.
16
615-25 Requirements relating to the interposed company
17
(1) The
*
shares issued in the interposed company must not be
18
*
redeemable shares.
19
(2) Each exchanging member who is issued
*
shares in the interposed
20
company must own the shares from the time they are issued until at
21
least the completion time.
22
(3) Immediately after the completion time:
23
(a) the exchanging members must own all the
*
shares in the
24
interposed company; or
25
(b) entities other than those members must own no more than 5
26
shares in the interposed company, and the
*
market value of
27
those shares expressed as a percentage of the market value of
28
all the shares in the interposed company must be such that it
29
is reasonable to treat the exchanging members as owning all
30
the shares.
31
615-30 Interposed company must make a particular choice
32
(1) Unless subsection (2) applies, the interposed company must choose
33
that section 615-65 applies.
34
Roll-overs for business restructures Schedule 1
Main amendments Part 1
No. , 2014
Tax and Superannuation Laws Amendment (2014 Measures No. 6) Bill
2014
9
(2) The interposed company must choose that a
*
consolidated group
1
continues in existence at and after the completion time with the
2
interposed company as its
*
head company, if:
3
(a) immediately before the completion time, the consolidated
4
group consisted of the original entity as head company and
5
one or more other members (the other group members); and
6
(b) immediately after the completion time, the interposed
7
company is the head company of a
*
consolidatable group
8
consisting only of itself and the other group members.
9
Note:
Sections 703-65 to 703-80 deal with the effects of the choice for the
10
consolidated group.
11
(3) A choice under subsection (1) or (2) must be made:
12
(a) within 2 months after the completion time, if the choice is
13
under subsection (1); or
14
(b) within 28 days after the completion time, if the choice is
15
under subsection (2); or
16
(c) within such further time as the Commissioner allows.
17
The choice cannot be revoked.
18
(4) The way the interposed company prepares its
*
income tax returns
19
is sufficient evidence of the making of the choice.
20
615-35 ADI restructures--disregard certain preference shares
21
For the purposes of this Division, disregard any
*
shares in the
22
original entity that can be disregarded under subsection 703-37(4)
23
if:
24
(a) the interposed company is a non-operating holding company
25
within the meaning of the Financial Sector (Business
26
Transfer and Group Restructure) Act 1999; and
27
(b) a restructure instrument under Part 4A of that Act is in force
28
in relation to the interposed company; and
29
(c) because of the restructure to which the instrument relates, an
30
*
ADI becomes a subsidiary (within the meaning of that Act)
31
of the interposed company; and
32
(d) the original entity is:
33
(i) the ADI; or
34
Schedule 1 Roll-overs for business restructures
Part 1 Main amendments
10
Tax and Superannuation Laws Amendment (2014 Measures No. 6) Bill
2014
No. , 2014
(ii) part of an extended licensed entity (within the meaning
1
of the
*
prudential standards) that includes the ADI.
2
Subdivision 615-C--Consequences of roll-overs
3
Table of sections
4
615-40
CGT consequences
5
615-45
Additional consequences--deferral of profit or loss
6
615-50
Trading stock
7
615-55
Revenue assets
8
615-60
Disregard CGT exemption for trading stock
9
615-40 CGT consequences
10
The consequences set out in Subdivision 124-A also apply to a
11
roll-over under this Division as if that roll-over were a roll-over
12
covered by Division 124 (about replacement-asset roll-overs).
13
Note:
Those consequences generally involve:
14
(a) disregarding a capital gain or capital loss you make from the
15
disposal, redemption or cancellation of your shares or units in the
16
original entity; and
17
(b) working out the first element of the cost base of each of your new
18
shares in the interposed entity by reference to the cost bases of
19
your shares or units in the original entity.
20
615-45 Additional consequences--deferral of profit or loss
21
The additional consequences in sections 615-50 and 615-55 apply
22
if:
23
(a) under this Division:
24
(i) you are taken to have chosen to obtain the roll-over; or
25
(ii) you otherwise choose to obtain the roll-over; and
26
(b) if subparagraph (a)(ii) applies to you, you choose for these
27
additional consequences to apply; and
28
(c) some or all of your
*
shares or units in the original entity at
29
the time immediately before they were:
30
(i) disposed of as described in paragraph 615-5(1)(c); or
31
(ii) redeemed or cancelled as described in
32
paragraph 615-10(1)(d);
33
Roll-overs for business restructures Schedule 1
Main amendments Part 1
No. , 2014
Tax and Superannuation Laws Amendment (2014 Measures No. 6) Bill
2014
11
had the character of being your
*
trading stock or
*
revenue
1
assets; and
2
(d) the shares in the interposed company that you acquired in
3
return for those shares or units have the same character.
4
Note 1:
Apply this section separately for assets of each character.
5
Note 2:
The CGT exemption for trading stock does not prevent you obtaining
6
the roll-over (see section 615-60).
7
615-50 Trading stock
8
(1) The amount included in your assessable income because of the
9
disposal, redemption or cancellation of each of your
*
shares or
10
units described in paragraph 615-45(c) that was your
*
trading stock
11
at the time mentioned in that paragraph is equal to:
12
(a) if the share or unit had been your trading stock ever since the
13
start of the income year that included that time--the total of:
14
(i) its
*
value as trading stock at the start of the income year;
15
and
16
(ii) the amount (if any) by which its cost had increased
17
since the start of the income year; or
18
(b) otherwise--its cost at that time.
19
(2) For each of the
*
shares that you acquired as described in
20
paragraph 615-45(d) that is your
*
trading stock, you are taken to
21
have paid:
22
*
Total included in your assessable income under subsection (1)
for your corresponding shares or units in the original entity
Number of your shares acquired as described in
paragraph 615 45(d) that are y
*
our trading stock
23
(3) For the purposes of Division 70 (about trading stock), you, the
24
original entity and the interposed company are taken to have dealt
25
with each other in the ordinary course of
*
business and at
*
arm's
26
length for each of the transactions referred to in
27
paragraph 615-5(1)(c) or 615-10(1)(d) or (e).
28
615-55 Revenue assets
29
(1) For each of your
*
shares or units that:
30
Schedule 1 Roll-overs for business restructures
Part 1 Main amendments
12
Tax and Superannuation Laws Amendment (2014 Measures No. 6) Bill
2014
No. , 2014
(a) is described in paragraph 615-45(c); and
1
(b) was a
*
revenue asset immediately before its disposal,
2
redemption or cancellation;
3
your gross proceeds for that disposal, redemption or cancellation
4
are taken to be the amount you would have needed to have
5
received in order to have a nil profit and nil loss for that disposal,
6
redemption or cancellation.
7
(2) For the purpose of calculating any profit or loss on a future
8
disposal, cessation of ownership, or other realisation of a
*
share
9
that:
10
(a) you acquired as described in paragraph 615-45(d); and
11
(b) is a
*
revenue asset;
12
you are taken to have paid the following for your acquisition of
13
that share:
14
*
*
Total worked out under subsection (1) for your
corresponding shares or units in the original entity
Number of your shares acquired as described
in paragraph 615 45(d) that are revenue assets
15
615-60 Disregard CGT exemption for trading stock
16
For the purposes of this Division, disregard section 118-25 (which
17
gives a CGT exemption for trading stock).
18
Subdivision 615-D--Consequences for the interposed company
19
Table of sections
20
615-65
Consequences for the interposed company
21
Roll-overs for business restructures Schedule 1
Main amendments Part 1
No. , 2014
Tax and Superannuation Laws Amendment (2014 Measures No. 6) Bill
2014
13
615-65 Consequences for the interposed company
1
(1) This section applies if the interposed company so chooses under
2
subsection 615-30(1).
3
(2) A number of the
*
shares or units that the interposed company owns
4
in the original entity (immediately after the completion time) are
5
taken to have been
*
acquired before 20 September 1985 if any of
6
the original entity's assets as at the completion time were acquired
7
by it before that day.
8
Note:
Generally, a capital gain or capital loss you make from a CGT asset
9
that you acquired before 20 September 1985 can be disregarded: see
10
Division 104.
11
(3) That number (worked out as at the completion time) is the greatest
12
possible whole number that (when expressed as a percentage of all
13
the
*
shares or units) does not exceed:
14
(a) the
*
market value of the original entity's assets that it
15
*
acquired before 20 September 1985; less
16
(b) its liabilities (if any) in respect of those assets;
17
expressed as a percentage of the market value of all the original
18
entity's assets less all of its liabilities.
19
(4) The first element of the
*
cost base of the interposed company's
20
*
shares or units in the original entity that are not taken to have been
21
*
acquired before 20 September 1985 is:
22
(a) the total of the cost bases (as at the completion time) of the
23
original entity's assets that it acquired on or after that day;
24
less
25
(b) its liabilities (if any) in respect of those assets.
26
The first element of the
*
reduced cost base of those shares or units
27
is worked out similarly.
28
(5) A liability of the original entity that is not a liability in respect of a
29
specific asset or assets of the original entity is taken to be a liability
30
in respect of all the assets of the original entity.
31
Note:
An example is a bank overdraft.
32
(6) If a liability is in respect of 2 or more assets, the proportion of the
33
liability that is in respect of any one of those assets is equal to:
34
Schedule 1 Roll-overs for business restructures
Part 1 Main amendments
14
Tax and Superannuation Laws Amendment (2014 Measures No. 6) Bill
2014
No. , 2014
*
The market value of the asset
Total market value of all the assets that the liability is in respect of
1
Roll-overs for business restructures Schedule 1
Consequential amendments Part 2
No. , 2014
Tax and Superannuation Laws Amendment (2014 Measures No. 6) Bill
2014
15
Part 2
--Consequential amendments
1
Income Tax Assessment Act 1936
2
2 Section 121AS (note 5)
3
Omit "124-G, 124-H,".
4
3 Section 121AS (note 5)
5
After "section 128-10 or 128-15", insert ", or Division 615,".
6
Income Tax Assessment Act 1997
7
4 Paragraph 103-25(3)(a)
8
Repeal the paragraph.
9
5 Section 112-115 (table items 9 and 10)
10
Repeal the items.
11
6 Section 112-115 (after table item 14C)
12
Insert:
13
14D
Exchange of shares in one company for shares in
an interposed company
Division 615
14E
Exchange of units in a unit trust for shares in a
company
Division 615
7 Subparagraphs 124-20(3)(a)(i) and (ii)
14
Repeal the subparagraphs.
15
8 Subparagraph 124-20(3)(a)(v)
16
Omit "and".
17
9 At the end of paragraph 124-20(3)(a)
18
Add:
19
(vi) Division 615 (Roll-overs for business restructures); and
20
Schedule 1 Roll-overs for business restructures
Part 2 Consequential amendments
16
Tax and Superannuation Laws Amendment (2014 Measures No. 6) Bill
2014
No. , 2014
10 Subdivisions 124-G and 124-H
1
Repeal the Subdivisions.
2
11 Subsection 124-795(3)
3
Omit "Subdivision 124-G", substitute "615".
4
12 Subsection 124-795(3) (note)
5
Omit "Subdivision 124-G deals with company reorganisation",
6
substitute "Division 615 deals with business restructures".
7
13 Subsection 125-70(5) (note)
8
Omit "124-G, 124-H or 124-M", substitute "or 124-M or Division 615".
9
14 Subsection 703-5(2) (note)
10
Omit "124-380(5)", substitute "615-30(2)".
11
15 Section 703-65
12
Omit "subsection 124-380(5)", substitute "subsection 615-30(2)".
13
16 Section 703-65 (note)
14
Omit "Subdivision 124-G", substitute "Division 615".
15
17 Section 703-70 (heading)
16
Repeal the heading, substitute:
17
703-70 Consolidated group continues in existence with interposed
18
company as head company and original entity as a
19
subsidiary member
20
18 Subsection 703-70(1)
21
Omit "124-380(5) as the original company", substitute "615-30(2) as
22
the original entity".
23
19 Subsection 703-70(2)
24
Omit "original company" (wherever occurring), substitute "original
25
entity".
26
Roll-overs for business restructures Schedule 1
Consequential amendments Part 2
No. , 2014
Tax and Superannuation Laws Amendment (2014 Measures No. 6) Bill
2014
17
20 Subsection 703-70(2) (note)
1
Omit "original company's", substitute "original entity's".
2
21 Subsection 703-70(3) (note)
3
Omit "original company", substitute "original entity".
4
22 Section 703-75 (heading)
5
Repeal the heading, substitute:
6
703-75 Interposed company treated as substituted for original entity
7
at all times before the completion time
8
23 Subsection 703-75(1)
9
Omit "original company" (wherever occurring), substitute "original
10
entity".
11
24 Subsection 703-75(1) (note)
12
Omit "original company's", substitute "original entity's".
13
25 Subsections 703-75(2) and (3)
14
Omit "original company", substitute "original entity".
15
26 Section 703-80 (heading)
16
Repeal the heading, substitute:
17
703-80 Effects on the original entity's tax position
18
27 Section 703-80
19
Omit "original company" (first occurring), substitute "original entity".
20
28 Section 703-80 (note 2)
21
Omit "original company's" (wherever occurring), substitute "original
22
entity's".
23
29 Section 703-80 (note 2)
24
Omit "original company", substitute "original entity".
25
Schedule 1 Roll-overs for business restructures
Part 2 Consequential amendments
18
Tax and Superannuation Laws Amendment (2014 Measures No. 6) Bill
2014
No. , 2014
Petroleum Resource Rent Tax Assessment Act 1987
1
30 Subsection 58T(1)
2
Omit "124-380(5)" (wherever occurring), substitute "615-30(2)".
3
31 Subsections 58T(1) and (2)
4
Omit "original company" (wherever occurring), substitute "original
5
entity".
6
32 Subsection 58T(2) (note)
7
Omit "original company's", substitute "original entity's".
8
Taxation Administration Act 1953
9
33 Paragraph 45-705(4)(a) in Schedule 1
10
Omit "124-380(5)", substitute "615-30(2)".
11
34 Subparagraphs 45-705(4)(d)(i) and (ii) in Schedule 1
12
Omit "original company", substitute "original entity".
13
35 Paragraph 45-705(5)(d) in Schedule 1
14
Omit "124-380(5)", substitute "615-30(2)".
15
36 Paragraph 45-740(2)(a) in Schedule 1
16
Omit "124-380(5)", substitute "615-30(2)".
17
Roll-overs for business restructures Schedule 1
Rights under arrangements Part 3
No. , 2014
Tax and Superannuation Laws Amendment (2014 Measures No. 6) Bill
2014
19
Part 3
--Rights under arrangements
1
Division 1
--Disposals by a trust to a company
2
Income Tax Assessment Act 1997
3
37 Paragraph 124-860(4)(b)
4
Repeal the paragraph, substitute:
5
(b) has no
*
CGT assets, other than any or all of the following:
6
(i) small amounts of cash or debt;
7
(ii) its rights under an
*
arrangement, if (collectively) those
8
rights only facilitate the transfer of assets to the
9
transferee from the transferor; and
10
Division 2
--Transfers between certain trusts
11
Income Tax Assessment Act 1997
12
38 Paragraph 126-225(1)(b)
13
Repeal the paragraph, substitute:
14
(b) if subparagraph (a)(ii) applies--the receiving trust has no
15
CGT assets immediately before the transfer time, other than
16
any or all of the following:
17
(i) small amounts of cash or debt;
18
(ii) its rights under an
*
arrangement, if (collectively) those
19
rights only facilitate the transfer of assets to it from the
20
transferring trust; and
21
Schedule 1 Roll-overs for business restructures
Part 4 Application and transitional provisions
20
Tax and Superannuation Laws Amendment (2014 Measures No. 6) Bill
2014
No. , 2014
Part 4
--Application and transitional provisions
1
39 Application of amendments
2
(1)
The amendments made by Parts 1 and 2 apply in relation to shares or
3
units disposed of, redeemed or cancelled at or after 7.30 pm, by legal
4
time in the Australian Capital Territory, on 10 May 2011.
5
(2)
The amendment made by Division 1 of Part 3 applies in relation to CGT
6
events happening at or after 7.30 pm, by legal time in the Australian
7
Capital Territory, on 10 May 2011.
8
(3)
The amendment made by Division 2 of Part 3 applies in relation to CGT
9
events happening on or after 1 November 2008.
10
40 Transitional provision
--transfers between certain trusts
11
(1)
This item applies if:
12
(a) a roll-over under Subdivision 126-G of the Income Tax
13
Assessment Act 1997 is chosen after the commencement of
14
this Schedule; and
15
(b) the transfer time (within the meaning of
16
paragraph 126-225(1)(a) of that Act) for the roll-over
17
happens during an income year ending before the
18
commencement of this Schedule.
19
(2)
Subsection 126-260(1) of that Act applies to the trustee of the
20
transferring trust as if the reference in that subsection to "within 3
21
months after the end of the transfer year" were a reference to "within 3
22
months after the time the roll-over is chosen".
23
Income Tax (Transitional Provisions) Act 1997
24
41 Before Division 620
25
Insert:
26
Division 615--Roll-overs for business restructures
27
Table of Subdivisions
28
Roll-overs for business restructures Schedule 1
Application and transitional provisions Part 4
No. , 2014
Tax and Superannuation Laws Amendment (2014 Measures No. 6) Bill
2014
21
615-A Modifications for roll-overs between the 2011 and 2012
1
Budget times
2
Subdivision 615-A--Modifications for roll-overs between the
3
2011 and 2012 Budget times
4
Table of sections
5
615-5
Roll-overs between the 2011 and 2012 Budget times
6
615-10
Modifications--when additional consequences can apply
7
615-15
Modifications--trading stock
8
615-20
Modifications--revenue assets
9
615-5 Roll-overs between the 2011 and 2012 Budget times
10
Subdivision 615-C of the Income Tax Assessment Act 1997 applies
11
to you with the modifications set out in this Subdivision if you
12
chose to obtain a roll-over involving
*
shares or units that:
13
(a) were disposed of, redeemed or cancelled during the period:
14
(i) starting at 7.30 pm, by legal time in the Australian
15
Capital Territory, on 10 May 2011; and
16
(ii) ending immediately before 7.30 pm, by legal time in the
17
Australian Capital Territory, on 8 May 2012; and
18
(b) were your trading stock, or revenue assets, at the time
19
immediately before that disposal, redemption or cancellation.
20
615-10 Modifications--when additional consequences can apply
21
(1) Disregard subparagraph 615-45(a)(ii), and paragraph 615-45(b), of
22
the Income Tax Assessment Act 1997 if the roll-over relates to
23
*
shares that were disposed of, redeemed or cancelled.
24
(2) Disregard paragraph 615-45(d) of that Act.
25
615-15 Modifications--trading stock
26
Substitute the following for subsection 615-50(2) of that Act:
27
(2) For each of the
*
shares in the interposed company that you
28
acquired in return for those of your shares or units in the original
29
Schedule 1 Roll-overs for business restructures
Part 4 Application and transitional provisions
22
Tax and Superannuation Laws Amendment (2014 Measures No. 6) Bill
2014
No. , 2014
entity that were your
*
trading stock at the time mentioned in
1
paragraph 615-45(c), you are taken to have paid:
2
*
Total included in your assessable income under subsection (1)
for those shares or units in the original entity
Number of those shares in the interposed company
3
615-20 Modifications--revenue assets
4
Substitute the following for subsection 615-55(2) of that Act:
5
(2) For the purpose of calculating any profit or loss on a future
6
disposal, cessation of ownership, or other realisation of a
*
share in
7
the interposed company that you acquired in return for those of
8
your shares or units in the original entity that were
*
revenue assets
9
at the time mentioned in paragraph 615-45(c), you are taken to
10
have paid:
11
*
Total worked out under subsection (1)
for those shares or units in the original entity
Number of those shares in the interposed company
12
MIT withholding regime for foreign pension funds Schedule 2
No. , 2014
Tax and Superannuation Laws Amendment (2014 Measures No. 6) Bill
2014
23
Schedule 2
--MIT withholding regime for
1
foreign pension funds
2
3
Income Tax Assessment Act 1997
4
1 Section 840-800
5
After "beneficiary", insert "(other than a foreign pension fund)".
6
2 After subsection 840-805(4)
7
Insert:
8
Modification--foreign pension funds
9
(4A) For the purposes of subsections (2), (3) and (4), if:
10
(a) the beneficiary, in respect of a fund payment part, is a
11
beneficiary in the capacity of a trustee of another trust; and
12
(b) the beneficiary is a
*
foreign pension fund;
13
the foreign pension fund is taken, in respect of that fund payment
14
part, to be a beneficiary in its own right, and not a beneficiary in
15
the capacity of the trustee of another trust.
16
(4B) Foreign pension fund means:
17
(a) an entity, the principal purpose of which is to fund pensions
18
(including disability and similar benefits) for the citizens or
19
other contributors of a foreign country, if:
20
(i) the entity is a fund established by an
*
exempt foreign
21
government agency; or
22
(ii) the entity is established under a
*
foreign law for an
23
exempt foreign government agency; or
24
(b) a
*
foreign superannuation fund that has at least 50
*
members.
25
(4C) If:
26
(a) a
*
foreign pension fund is liable to pay income tax on a fund
27
payment part (a taxed part) because of the operation of
28
subsection (4A); and
29
Schedule 2 MIT withholding regime for foreign pension funds
24
Tax and Superannuation Laws Amendment (2014 Measures No. 6) Bill
2014
No. , 2014
(b) you are a beneficiary of the foreign pension fund and are
1
presently entitled to a share of the income or capital of the
2
foreign pension fund;
3
then, in working out for the purposes of paragraph (4)(b) whether
4
all or part of that share is reasonably attributable to a payment that
5
is a
*
fund payment, disregard the taxed part.
6
3 Subsection 995-1(1)
7
Insert:
8
foreign pension fund has the meaning given by
9
subsection 840-805(4B).
10
Taxation Administration Act 1953
11
4 At the end of section 18-32 in Schedule 1
12
Add:
13
(3) Subsection (4) applies if:
14
(a) all or part of an amount (the fund payment part) is
15
represented by a payment that is a
*
fund payment; and
16
(b) under subsection 840-805(4A) of the Income Tax Assessment
17
Act 1997, a
*
foreign pension fund is taken, in respect of the
18
fund payment part, to be a beneficiary in its own right, and
19
not a beneficiary in the capacity of the trustee of another
20
trust; and
21
(c) there is an
*
amount withheld from the fund payment under
22
Subdivision 12-H.
23
(4) For the purposes of paragraph (1)(b):
24
(a) treat the
*
foreign pension fund as having borne all or part of
25
the amount withheld; and
26
(b) treat a beneficiary of the foreign pension fund as not having
27
borne all or part of the amount withheld.
28
5 Application
29
The amendments made by this Schedule apply to fund payments made
30
in relation to the first income year starting on or after 1 July 2008 and
31
later income years.
32
Income tax exemption for Force Posture Initiatives Schedule 3
No. , 2014
Tax and Superannuation Laws Amendment (2014 Measures No. 6) Bill
2014
25
Schedule 3
--Income tax exemption for Force
1
Posture Initiatives
2
3
Income Tax Assessment Act 1936
4
1 Subsection 23AA(1) (definition of approved project)
5
Omit "or of the Joint Defence Space Communications Station",
6
substitute ", of the Joint Defence Space Communications Station or of a
7
Force Posture Initiative".
8
2 Subsection 23AA(1)
9
Insert:
10
Force Posture Agreement means the Force Posture Agreement
11
between the Government of Australia and the Government of the
12
United States of America done at Sydney on 12 August 2014, as
13
amended and in force for Australia from time to time.
14
Note:
The Treaty could in 2014 be viewed in the Australian Treaties Library
15
on the AustLII website (http://www.austlii.edu.au).
16
Force Posture Initiative has the same meaning as in the Force
17
Posture Agreement.
18
Note:
As well as some announced initiatives, this includes future initiatives
19
that Australia and the United States mutually decide to be Force
20
Posture Initiatives for the purposes of that Agreement.
21
3 Application of amendments
22
The amendments made by this Schedule apply in relation to
23
assessments for the 2014-15 income year and later income years.
24
Schedule 4 Fuel tax credits
26
Tax and Superannuation Laws Amendment (2014 Measures No. 6) Bill
2014
No. , 2014
Schedule 4
--Fuel tax credits
1
2
Fuel Tax Act 2006
3
1 Subsection 43-5(2A)
4
Repeal the subsection, substitute:
5
Day for rate of fuel tax, grant or subsidy
6
(2A) Work out the day using the table:
7
8
Day for rate of fuel tax, grant or subsidy
If:
The day is:
1 You acquired or imported the fuel
The day you acquired or
imported the fuel
2 You:
(a) manufactured the fuel; and
(b) entered the fuel for home
consumption (within the meaning
of the Excise Act 1901)
The day you entered the
fuel for home
consumption (within the
meaning of the Excise
Act 1901)
Note:
Division 65 sets out which tax period a credit is attributable to.
9
2 After section 43-5
10
Insert:
11
43-6 Meaning of fuel tax
12
(1) Fuel tax is duty that is payable on fuel under:
13
(a) the Excise Act 1901 and the Excise Tariff Act 1921; or
14
(b) the Customs Act 1901 and the Customs Tariff Act 1995;
15
other than any duty that is expressed as a percentage of the value of
16
fuel for the purposes of section 9 of the Customs Tariff Act 1995.
17
(2) For the purposes of subsection (1), if:
18
(a) an Excise Tariff alteration, proposed by a motion moved in
19
the House of Representatives, relates to duty payable on fuel;
20
or
21
Fuel tax credits Schedule 4
No. , 2014
Tax and Superannuation Laws Amendment (2014 Measures No. 6) Bill
2014
27
(b) a Customs Tariff alteration, proposed by a motion moved in
1
the House of Representatives, relates to duty payable on fuel;
2
the alteration is taken to have effect as if it is an amendment of the
3
Act it proposes to alter, and as if that amendment is in force.
4
(3) However, the alteration ceases to be taken to have that effect
5
unless, before whichever of the following first happens:
6
(a) the close of the session in which the Excise Tariff alteration
7
or Customs Tariff alteration, is proposed;
8
(b) the expiration of 12 months after the Excise Tariff alteration
9
or Customs Tariff alteration, is proposed;
10
one or more amendments of an Act come into force that have the
11
effect proposed by the alteration.
12
(4) For the purposes of subsection (3), the Excise Tariff alteration, or
13
the Customs Tariff alteration, is taken to have been proposed at the
14
time the motion referred to in subsection (2) was moved.
15
3 Subsection 43-10(6)
16
Repeal the subsection, substitute:
17
Working out the amount of the reduction
18
(6) The
*
amount by which a fuel tax credit for taxable fuel is reduced
19
under subsection (1) or (3) is worked out by reference to the rate of
20
fuel tax or road user charge in force on the day worked out using
21
the table in subsection 43-5(2A).
22
4 Subsection 44-5(1)
23
Repeal the subsection, substitute:
24
(1) You have a
*
fuel tax adjustment if you use fuel, or make a
*
taxable
25
supply of fuel, and the
*
amount of the fuel tax credit to which you
26
would have been entitled for the use or supply would have been
27
different from the amount to which you are or were entitled if one
28
or both of the following were to apply:
29
(a) you had originally acquired, manufactured or imported the
30
fuel to use or make a taxable supply in the circumstances in
31
which you did use, or make a taxable supply of, the fuel;
32
(b) an alteration of a kind referred to in subsection 43-6(2) that:
33
Schedule 4 Fuel tax credits
28
Tax and Superannuation Laws Amendment (2014 Measures No. 6) Bill
2014
No. , 2014
(i) under that subsection, had been taken to have effect as if
1
it is an amendment of an Act; and
2
(ii) under subsection 43-6(3) ceased to be taken to have that
3
effect;
4
had never been proposed as mentioned in subsection 43-6(2).
5
5 Section 110-5 (definition of fuel tax)
6
Repeal the definition, substitute:
7
fuel tax has the meaning given by section 43-6.
8
6 Application
9
The amendments made by items 1 and 3 apply in relation to:
10
(a) a tax period that starts on or after 1 July 2014; or
11
(b) a fuel tax return period, if the return for that period is lodged
12
on or after 1 July 2014.
13
Energy Grants (Cleaner Fuels) Scheme Schedule 5
No. , 2014
Tax and Superannuation Laws Amendment (2014 Measures No. 6) Bill
2014
29
Schedule 5
--Energy Grants (Cleaner Fuels)
1
Scheme
2
3
Energy Grants (Cleaner Fuels) Scheme Regulations 2004
4
1 After regulation 3
5
Insert:
6
3A Effect on the duty rate of proposed Excise Tariff alterations
7
(1) For the purposes of the definition of duty rate in regulation 3, if an
8
Excise Tariff alteration, proposed by a motion moved in the House
9
of Representatives, relates to the excise duty rate for biodiesel, the
10
alteration is taken to have effect as if:
11
(a) it is an amendment of the Act it proposes to alter; and
12
(b) that amendment is in force.
13
(2) However, the alteration does not have, and is taken never to have
14
had, that effect unless, before whichever of the following first
15
happens:
16
(a) the close of the session in which the Excise Tariff alteration
17
is proposed;
18
(b) the expiration of 12 months after the Excise Tariff alteration
19
is proposed;
20
one or more amendments of an Act come into force that have the
21
effect proposed by the alteration.
22
(3) For the purposes of subregulation (2), Excise Tariff alteration is
23
taken to have been proposed at the time the motion referred to in
24
subregulation (1) was moved.
25
2 Regulation 6 (formula)
26
Repeal the formula, substitute:
27
V
Relevant duty rate
Previous grant
28
Schedule 5 Energy Grants (Cleaner Fuels) Scheme
30
Tax and Superannuation Laws Amendment (2014 Measures No. 6) Bill
2014
No. , 2014
3 Regulation 6 (after the definition of V)
1
Insert:
2
relevant duty rate means the duty rate at the time when the
3
biodiesel is entered.
4
4 Regulation 7C (formula)
5
Repeal the formula, substitute:
6
Renewable diesel
Relevant duty rate
Previous grant
amount
7
5 Regulation 7C (after the definition of renewable diesel
8
amount)
9
Insert:
10
relevant duty rate means the duty rate at the time when the
11
renewable diesel is entered.
12