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This is a Bill, not an Act. For current law, see the Acts databases.
2013-2014-2015
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Tax and Superannuation Laws
Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
(Treasury)
A Bill for an Act to amend the law relating to first
home saver accounts, taxation, superannuation and
charities, and to amend the Product Stewardship
(Oil) Act 2000, and for related purposes
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
i
Contents
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 1
3
Schedules ........................................................................................... 4
Schedule 1--First Home Saver Accounts
5
Part 1--Repeals of Acts
5
First Home Saver Account Providers Supervisory Levy Imposition Act
2008
5
First Home Saver Accounts Act 2008
5
Income Tax (First Home Saver Accounts Misuse Tax) Act 2008
5
Part 2--Consequential amendments
6
Division 1--Main amendments
6
Anti-Money Laundering and Counter-Terrorism Financing Act 2006
6
Australian Prudential Regulation Authority Act 1998
6
Australian Securities and Investments Commission Act 2001
7
Banking Act 1959
7
Corporations Act 2001
8
Financial Institutions Supervisory Levies Collection Act 1998
10
Fringe Benefits Tax Assessment Act 1986
10
Income Tax Act 1986
10
Income Tax Assessment Act 1936
11
Income Tax Assessment Act 1997
12
Income Tax Rates Act 1986
18
Life Insurance Act 1995
19
Social Security Act 1991
20
Superannuation (Government Co-contribution for Low Income
Earners) Act 2003
21
Superannuation Industry (Supervision) Act 1993
21
Taxation Administration Act 1953
22
Veterans' Entitlements Act 1986
24
Division 2--Repeals of Tax Code definitions
26
ii
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
Income Tax Assessment Act 1997
26
Division 3--Other bulk amendments
27
Income Tax Assessment Act 1997
27
Part 3--Amendment of the Omnibus Repeal Day (Spring
2014) Act 2015
28
Omnibus Repeal Day (Spring 2014) Act 2015
28
Part 4--Application and transitional provisions
29
Division 1--Definitions
29
Division 2--General provisions
29
Division 3--Specific provisions
31
Schedule 2--Dependent spouse tax offset
33
Part 1--Main amendments
33
Income Tax Assessment Act 1936
33
Income Tax Assessment Act 1997
35
Part 2--Consequential amendments
41
Income Tax Assessment Act 1936
41
Income Tax Assessment Act 1997
41
Medicare Levy Act 1986
42
Tax and Superannuation Laws Amendment (2014 Measures No. 1) Act
2014
43
Part 3--Technical amendments
44
Income Tax Assessment Act 1997
44
Part 4--Application of amendments
45
Schedule 3--Offshore banking units
46
Part 1--Trading in subsidiaries
46
Income Tax Assessment Act 1936
46
Part 2--The choice principle
47
Income Tax Assessment Act 1936
47
Part 3--Allocation of expenses
50
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
iii
Income Tax Assessment Act 1936
50
Part 4--Eligible OB activities
53
Income Tax Assessment Act 1936
53
Part 5--Internal financial dealings
57
Income Tax Assessment Act 1936
57
Part 6--Application of amendments
58
Schedule 4--Exemption for Global Infrastructure Hub Ltd
59
Part 1--Amendments commencing day after Royal Assent
59
Income Tax Assessment Act 1997
59
Part 2--Sunsetting on 1 July 2021
60
Income Tax Assessment Act 1997
60
Schedule 5--Deductible gift recipient extensions
61
Income Tax Assessment Act 1997
61
Tax and Superannuation Laws Amendment (2013 Measures No. 2) Act
2013
61
Schedule 6--Miscellaneous amendments
62
Part 1--General amendments
62
A New Tax System (Goods and Services Tax) Act 1999
62
Charities (Consequential Amendments and Transitional Provisions)
Act 2013
62
Fringe Benefits Tax Assessment Act 1986
63
Fuel Tax Act 2006
63
Income Tax Assessment Act 1997
64
Income Tax Rates Act 1986
67
Income Tax Rates Amendment (Temporary Flood and Cyclone
Reconstruction Levy) Act 2011
67
Minerals Resource Rent Tax (Consequential Amendments and
Transitional Provisions) Act 2012
67
Product Stewardship (Oil) Act 2000
67
iv
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
Superannuation (Government Co-contribution for Low Income
Earners) Act 2003
68
Tax Agent Services Act 2009
68
Taxation Administration Act 1953
69
Taxation (Deficit Reduction) Act (No. 3) 1993
70
Taxation (Interest on Overpayments and Early Payments) Act 1983
70
Treasury Legislation Amendment (Repeal Day) Act 2015
70
Part 2--Consequential amendments relating to the Public
Governance, Performance and Accountability Act
2013
71
Australian Charities and Not-for-profits Commission Act 2012
71
Schedule 7--Investment Manager Regime
74
Part 1--Main amendments
74
Income Tax Assessment Act 1997
74
Part 2--Other amendments
87
Income Tax Assessment Act 1936
87
Income Tax Assessment Act 1997
88
Income Tax (Transitional Provisions) Act 1997
89
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
1
A Bill for an Act to amend the law relating to first
1
home saver accounts, taxation, superannuation and
2
charities, and to amend the Product Stewardship
3
(Oil) Act 2000, and for related purposes
4
The Parliament of Australia enacts:
5
1 Short title
6
This Act may be cited as the Tax and Superannuation Laws
7
Amendment (2015 Measures No. 1) Act 2015.
8
2 Commencement
9
(1) Each provision of this Act specified in column 1 of the table
10
commences, or is taken to have commenced, in accordance with
11
2
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
column 2 of the table. Any other statement in column 2 has effect
1
according to its terms.
2
3
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. Schedule 1,
Part 1
1 July 2015.
1 July 2015
3. Schedule 1,
Part 2,
Divisions 1 and 2
1 July 2015.
1 July 2015
4. Schedule 1,
Part 2, Division 3
Immediately after the commencement of the
provisions covered by table item 3.
1 July 2015
5. Schedule 1,
Part 3
Immediately after the commencement of
item 4 of Schedule 8 to the Omnibus Repeal
Day (Spring 2014) Act 2015.
However, the provisions do not commence
at all if that item 4 commences before 1 July
2015.
6. Schedule 1,
Part 4
1 July 2015.
1 July 2015
7. Schedules 2, 3
and 4
The day this Act receives the Royal Assent.
8. Schedule 5
The day after this Act receives the Royal
Assent.
9. Schedule 6,
items 1 and 2
The day this Act receives the Royal Assent.
10. Schedule 6,
item 3
Immediately after the commencement of
Part 1 of Schedule 1 to the Charities
(Consequential Amendments and
Transitional Provisions) Act 2013.
1 January 2014
11. Schedule 6,
items 4 to 30
The day this Act receives the Royal Assent.
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
3
Commencement information
Column 1
Column 2
Column 3
Provisions
Commencement
Date/Details
12. Schedule 6,
item 31
Immediately after the commencement of
Schedule 6 to the Tax and Superannuation
Laws Amendment (2013 Measures No. 1)
Act 2013.
29 June 2013
13. Schedule 6,
items 32 to 40
The day this Act receives the Royal Assent.
14. Schedule 6,
item 41
Immediately after the commencement of
Part 1 of Schedule 3 to the Minerals
Resource Rent Tax (Consequential
Amendments and Transitional Provisions)
Act 2012.
1 July 2012
15. Schedule 6,
items 42 to 46
The day this Act receives the Royal Assent.
16. Schedule 6,
items 47 to 50
Immediately after the commencement of
items 6 and 8 of Schedule 1 to the Tax Laws
Amendment (2013 Measures No. 3) Act
2013.
1 July 2014
17. Schedule 6,
items 51 to 63
The day this Act receives the Royal Assent.
18. Schedule 6,
item 64
Immediately after the commencement of
Part 2 of Schedule 2 to the Treasury
Legislation Amendment (Repeal Day) Act
2015.
25 February
2015
19. Schedule 6,
Part 2
Immediately after the commencement of
section 6 of the Public Governance,
Performance and Accountability Act 2013.
1 July 2014
20. Schedule 7
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
4
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
3 Schedules
1
Legislation 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
First Home Saver Accounts Schedule 1
Repeals of Acts Part 1
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
5
Schedule 1
--First Home Saver Accounts
1
Part 1
--Repeals of Acts
2
First Home Saver Account Providers Supervisory Levy
3
Imposition Act 2008
4
1 The whole of the Act
5
Repeal the Act.
6
First Home Saver Accounts Act 2008
7
2 The whole of the Act
8
Repeal the Act.
9
Income Tax (First Home Saver Accounts Misuse Tax) Act
10
2008
11
3 The whole of the Act
12
Repeal the Act.
13
Schedule 1 First Home Saver Accounts
Part 2 Consequential amendments
6
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
Part 2
--Consequential amendments
1
Division 1
--Main amendments
2
Anti-Money Laundering and Counter-Terrorism Financing
3
Act 2006
4
4 Section 5 (definition of contribution)
5
Repeal the definition, substitute:
6
contribution, in relation to an RSA, has the same meaning as in the
7
Retirement Savings Accounts Act 1997.
8
5 Section 5 (definition of FHSA)
9
Repeal the definition.
10
6 Section 5 (definition of FHSA provider)
11
Repeal the definition.
12
7 Subsection 6(2) (table items 43A and 43B)
13
Repeal the items.
14
Australian Prudential Regulation Authority Act 1998
15
8 Subsection 3(1) (paragraph (fa) of the definition of
16
prudential regulation framework law)
17
Repeal the paragraph.
18
9 Paragraph 3(2)(g)
19
Omit "1997;", substitute "1997.".
20
10 Paragraph 3(2)(h)
21
Repeal the paragraph.
22
First Home Saver Accounts Schedule 1
Consequential amendments Part 2
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
7
11 Subsection 3(2) (note)
1
Omit ", RSA is short for retirement savings account and FHSA is short
2
for first home saver account", substitute "and RSA is short for
3
retirement savings account".
4
12 Subsection 56(1) (subparagraph (e)(ii) of the definition of
5
protected document)
6
Omit "Taxation; or", substitute "Taxation.".
7
13 Subsection 56(1) (paragraph (f) of the definition of
8
protected document)
9
Repeal the paragraph.
10
14 Subsection 56(1) (subparagraph (e)(ii) of the definition of
11
protected information)
12
Omit "Taxation; or", substitute "Taxation.".
13
15 Subsection 56(1) (paragraph (f) of the definition of
14
protected information)
15
Repeal the paragraph.
16
Australian Securities and Investments Commission Act 2001
17
16 Paragraph 12A(1)(h)
18
Repeal the paragraph.
19
17 Paragraph 12BAA(7)(ga)
20
Repeal the paragraph.
21
Banking Act 1959
22
18 Subparagraph 11CA(1)(a)(iii)
23
Repeal the subparagraph.
24
Schedule 1 First Home Saver Accounts
Part 2 Consequential amendments
8
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
19 Paragraph 11CA(1)(c)
1
Omit ", the Financial Sector (Collection of Data) Act 2001 or the First
2
Home Saver Accounts Act 2008", substitute "or the Financial Sector
3
(Collection of Data) Act 2001".
4
20 Subparagraph 11CA(2)(aa)(ii)
5
Omit "or".
6
21 Subparagraph 11CA(2)(aa)(iii)
7
Repeal the subparagraph.
8
22 Subsection 18A(5)
9
Repeal the subsection.
10
23 Section 51A (definition of reviewable decision of APRA)
11
Omit "or the First Home Saver Accounts Act 2008".
12
24 Subsection 62A(4)
13
Repeal the subsection.
14
25 Paragraph 69(3)(b)
15
Repeal the paragraph.
16
26 Subsection 69(3) (note)
17
Repeal the note.
18
Corporations Act 2001
19
27 Section 9 (definition of FHSA product)
20
Repeal the definition.
21
28 Section 9 (paragraph (ha) of the definition of managed
22
investment scheme)
23
Repeal the paragraph.
24
First Home Saver Accounts Schedule 1
Consequential amendments Part 2
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
9
29 Section 761A (paragraph (da) of the definition of basic
1
deposit product)
2
Repeal the paragraph.
3
30 Section 761A (definition of FHSA product)
4
Repeal the definition.
5
31 Subsection 761E(3) (table item 2A)
6
Repeal the item.
7
32 Paragraph 761E(3A)(ba)
8
Repeal the paragraph.
9
33 Paragraph 764A(1)(ha)
10
Repeal the paragraph.
11
34 Paragraph 766E(3)(cb)
12
Repeal the paragraph.
13
35 Subsection 946AA(1A)
14
Repeal the subsection.
15
36 Paragraph 961F(c)
16
Repeal the paragraph.
17
37 Subsection 1016A(1) (paragraph (da) of the definition of
18
relevant financial product)
19
Repeal the paragraph.
20
38 Subparagraphs 1017D(1)(b)(iiia) and 1019A(1)(a)(iiia)
21
Repeal the subparagraphs.
22
Schedule 1 First Home Saver Accounts
Part 2 Consequential amendments
10
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
Financial Institutions Supervisory Levies Collection Act
1
1998
2
39 Section 7 (paragraph (f) of the definition of leviable body)
3
Omit "entity;", substitute "entity.".
4
40 Section 7 (paragraph (g) of the definition of leviable body)
5
Repeal the paragraph.
6
41 Section 7 (definition of leviable FHSA entity)
7
Repeal the definition.
8
42 Section 7 (paragraph (f) of the definition of levy)
9
Omit "1998; or", substitute "1998.".
10
43 Section 7 (paragraph (g) of the definition of levy)
11
Repeal the paragraph.
12
44 Subsection 8(7)
13
Repeal the subsection.
14
Fringe Benefits Tax Assessment Act 1986
15
45 Subsection 136(1) (paragraph (hd) of the definition of
16
fringe benefit)
17
Repeal the paragraph.
18
Income Tax Act 1986
19
46 Subsection 5(2B)
20
Repeal the subsection.
21
First Home Saver Accounts Schedule 1
Consequential amendments Part 2
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
11
Income Tax Assessment Act 1936
1
47 Subsection 6(1) (paragraph (h) of the definition of
2
assessment)
3
Omit "payable); or", substitute "payable).".
4
48 Subsection 6(1) (paragraph (i) of the definition of
5
assessment)
6
Repeal the paragraph.
7
49 Subsection 6(1) (definition of FHSA)
8
Repeal the definition.
9
50 Subsection 6(1) (definition of FHSA trust)
10
Repeal the definition.
11
51 Subsection 6(1) (paragraph (f) of the definition of full
12
self-assessment taxpayer)
13
Omit "year;", substitute "year.".
14
52 Subsection 6(1) (paragraph (g) of the definition of full
15
self-assessment taxpayer)
16
Repeal the paragraph.
17
53 Subparagraph 26AH(7)(ba)(i)
18
Omit "superannuation/FHSA", substitute "superannuation".
19
54 Section 95AA
20
Repeal the section.
21
55 Subparagraph 102MD(a)(ii)
22
Omit "superannuation/FHSA", substitute "superannuation".
23
56 Paragraph 124ZM(3)(d)
24
Omit "or" (last occurring).
25
Schedule 1 First Home Saver Accounts
Part 2 Consequential amendments
12
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
57 Paragraph 124ZM(3)(da)
1
Repeal the paragraph.
2
58 Paragraph 124ZM(6)(a)
3
Insert:
4
complying superannuation class of taxable income is the life
5
assurance company's complying superannuation class of taxable
6
income, within the meaning of the Income Tax Assessment Act
7
1997, for the year of income in which the distribution is made.
8
59 Paragraph 124ZM(6)(a) (definition of complying
9
superannuation/FHSA class of taxable income)
10
Repeal the definition.
11
60 Paragraph 202(kb)
12
Repeal the paragraph.
13
61 Section 202A (definition of interest-bearing account)
14
Omit "or FHSA".
15
62 Section 202A (definition of interest-bearing deposit)
16
Omit "or FHSA".
17
63 Section 202A (definition of unit trust)
18
Omit "an FHSA trust or".
19
64 Paragraph 272-100(e) in Schedule 2F
20
Repeal the paragraph.
21
Income Tax Assessment Act 1997
22
65 Section 9-1 (table item 8A)
23
Repeal the item.
24
First Home Saver Accounts Schedule 1
Consequential amendments Part 2
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
13
66 Section 10-
5 (table item headed "first home saver
1
accounts")
2
Repeal the item.
3
67 Section 10-
5 (table item headed "reimbursements")
4
Omit "first home saver accounts,".
5
68 Section 11-
55 (table item headed "first home saver
6
accounts")
7
Repeal the item.
8
69 Section 15-80
9
Repeal the section.
10
70 Paragraphs 51-120(c) and (d)
11
Repeal the paragraphs.
12
71 Subparagraph 115-100(a)(ii)
13
Omit "or
*
FHSA trust".
14
72 Subparagraphs 115-100(b)(iia) and 115-280(1)(a)(ia)
15
Repeal the subparagraphs.
16
73 Paragraph 115-280(2)(a)
17
Omit "or an
*
FHSA trust".
18
74 Paragraph 115-280(2)(b)
19
Omit ", an FHSA trust".
20
75 Paragraph 115-280(5)(a)
21
Omit "or an
*
FHSA trust".
22
76 Paragraph 115-280(5)(b)
23
Omit ", an FHSA trust".
24
77 Paragraphs 166-245(2)(ba) and (3)(ba)
25
Repeal the paragraphs.
26
Schedule 1 First Home Saver Accounts
Part 2 Consequential amendments
14
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
78 Subsection 205-15(3)
1
Repeal the subsection, substitute:
2
(3) Despite item 1 or 2 of the table in subsection (1), no credit arises
3
on that part of the payment that is attributable to a payment of
4
income tax in relation to an
*
RSA component.
5
79 Paragraph 205-30(2)(a)
6
Repeal the paragraph, substitute:
7
(a) a payment of income tax in relation to an
*
RSA component;
8
80 Paragraphs 207-15(2)(a) and 207-35(1)(c)
9
Omit "or
*
FHSA trust".
10
81 Paragraph 207-45(ca)
11
Repeal the paragraph.
12
82 Subsection 210-175(2)
13
Insert:
14
complying superannuation class of taxable income means the
15
*
complying superannuation class of taxable income of the
16
company for the income year in which the
*
distribution is made.
17
83 Subsection 210-175(2) (definition of complying
18
superannuation/FHSA class of taxable income)
19
Repeal the definition.
20
84 Subparagraph 290-5(c)(iii)
21
Omit "Australia;", substitute "Australia.".
22
85 Paragraphs 290-5(d) and (e)
23
Repeal the paragraphs.
24
86 Subsection 295-10(2) (step 4 of the method statement)
25
Repeal the step.
26
First Home Saver Accounts Schedule 1
Consequential amendments Part 2
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
15
87 Subsection 295-10(2) (step 5 of the method statement)
1
Omit "and the
*
FHSA component are", substitute "is".
2
88 Section 295-171
3
Repeal the section.
4
89 Section 295-495 (table item 4A)
5
Repeal the item.
6
90 Paragraph 295-555(1)(b)
7
Repeal the paragraph.
8
91 Subsection 295-555(1) (note)
9
Omit "and the FHSA component (if applicable) are", substitute "is".
10
92 Subsection 295-555(3)
11
Omit "sum of the
*
RSA component and the
*
FHSA component (if
12
any)", substitute "
*
RSA component".
13
93 Paragraph 295-555(3)(b)
14
Omit "and the FHSA component (if any)".
15
94 Subsection 295-555(4)
16
Omit "and the
*
FHSA component (if any)".
17
95 Paragraph 295-615(1)(b)
18
Omit ", the First Home Saver Accounts Act 2008".
19
96 Paragraph 295-615(1)(d)
20
Omit "1997;", substitute "1997.".
21
97 Paragraph 295-615(1)(e)
22
Repeal the paragraph.
23
98 Section 320-1
24
Omit "or FHSAs" (wherever occurring).
25
Schedule 1 First Home Saver Accounts
Part 2 Consequential amendments
16
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
99 Paragraph 320-80(2)(b)
1
Omit ",
*
FHSA".
2
100 Paragraph 320-85(2)(ba)
3
Repeal the paragraph.
4
101 Subsection 320-107(3)
5
Insert:
6
complying superannuation class rate is the rate of tax imposed on
7
the
*
complying superannuation class of the company's taxable
8
income for the income year.
9
102 Subsection 320-107(3) (definition of complying
10
superannuation/FHSA class rate)
11
Repeal the definition.
12
103 Division 345
13
Repeal the Division.
14
104 Subparagraph 380-15(1)(d)(iv)
15
Repeal the subparagraph.
16
105 Subsection 713-545(6)
17
Insert:
18
complying superannuation class tax rate means the rate of tax in
19
respect of the
*
complying superannuation class of the taxable
20
income of a
*
life insurance company for the income year in which
21
the joining time occurs (see paragraph 23A(b) of the Income Tax
22
Rates Act 1986).
23
106 Subsection 713-545(6) (definition of complying
24
superannuation/FHSA class tax rate)
25
Repeal the definition.
26
107 Subsection 995-1(1)
27
Insert:
28
First Home Saver Accounts Schedule 1
Consequential amendments Part 2
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
17
complying superannuation asset has the meaning given by
1
subsection 320-170(6).
2
complying superannuation asset pool has the meaning given by
3
subsection 320-170(6).
4
complying superannuation class:
5
(a) for a taxable income of a
*
life insurance company--has the
6
meaning given by section 320-137; or
7
(b) for a
*
tax loss of a
*
life insurance company--has the meaning
8
given by section 320-141.
9
complying superannuation liabilities of a
*
life insurance company
10
means liabilities of the company under
*
life insurance policies
11
referred to in subsection 320-190(1).
12
complying superannuation life insurance policy means a
*
life
13
insurance policy that:
14
(a) is held by:
15
(i) the trustee of a fund that is a
*
complying superannuation
16
fund or a
*
complying approved deposit fund; or
17
(ii) the trustee of a
*
pooled superannuation trust; or
18
(b) is held by an individual and:
19
(i) provides for an
*
annuity that is not presently payable, if
20
the annuity was purchased out of a
*
superannuation
21
lump sum or an
*
employment termination payment; or
22
(ii) is so held in the benefit fund of a
*
friendly society,
23
being a fund that is a
*
regulated superannuation fund; or
24
(c) is held by another
*
life insurance company and is a
25
*
complying superannuation asset of that company;
26
and is not an
*
excluded complying superannuation life insurance
27
policy.
28
excluded complying superannuation life insurance policy means
29
a
*
life insurance policy that:
30
(a) provides only for
*
superannuation death benefits,
*
disability
31
superannuation benefits or temporary disability benefits of a
32
kind referred to in paragraph 295-460(c), that are not
33
*
participating benefits; or
34
(b) is an
*
exempt life insurance policy.
35
Schedule 1 First Home Saver Accounts
Part 2 Consequential amendments
18
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
108 Subsection 995-1(1) (definition of standard component)
1
Repeal the definition, substitute:
2
standard component has the meaning given by section 295-555.
3
Income Tax Rates Act 1986
4
109 Subsection 3(1)
5
Insert:
6
complying superannuation class of the taxable income of a life
7
insurance company has the same meaning as in the Income Tax
8
Assessment Act 1997.
9
110 Subsection 3(1) (definition of complying
10
superannuation/FHSA class)
11
Repeal the definition.
12
111 Subsection 3(1) (definition of FHSA component)
13
Repeal the definition.
14
112 Subsection 3(1) (definition of FHSA provider)
15
Repeal the definition.
16
113 Subsection 3(1) (definition of FHSA trust)
17
Repeal the definition.
18
114 Paragraphs 23(2)(ba) and (3)(aa)
19
Repeal the paragraphs.
20
115 Subsection 23(3A)
21
Repeal the subsection.
22
116 Paragraph 23A(b)
23
Omit "superannuation/FHSA", substitute "superannuation".
24
117 Section 30
25
Repeal the section.
26
First Home Saver Accounts Schedule 1
Consequential amendments Part 2
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
19
Life Insurance Act 1995
1
118 Subparagraph 14(2)(a)(ii)
2
Omit "or" (last occurring), substitute "and".
3
119 Subparagraph 14(2)(a)(iii)
4
Repeal the subparagraph.
5
120 Subparagraph 14(4)(b)(ii)
6
Omit "be; or", substitute "be.".
7
121 Subparagraph 14(4)(b)(iii)
8
Repeal the subparagraph.
9
122 Subsection 74(1)
10
Omit "(1)".
11
123 Subsection 74(2)
12
Repeal the subsection.
13
124 Subsection 126(1)
14
Omit "(1) In", substitute "In".
15
125 Subsection 126(2)
16
Repeal the subsection.
17
126 Subsection 216(1)
18
Omit "or FHSAs (within the meaning of the First Home Saver Accounts
19
Act 2008)".
20
127 Subsection 216(1) (note)
21
Repeal the note.
22
128 Subsections 230A(14), 230B(11) and 236(1AA)
23
Repeal the subsections.
24
Schedule 1 First Home Saver Accounts
Part 2 Consequential amendments
20
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
Social Security Act 1991
1
129 Paragraph 8(8)(ba)
2
Repeal the paragraph.
3
130 Subsection 9(1) (definition of financial investment)
4
Omit "an investment in an FHSA (within the meaning of the First
5
Home Saver Accounts Act 2008) or".
6
131 Subsection 9(1) (paragraph (b) of the definition of
7
investment)
8
Omit "(9A); or", substitute "(9A).".
9
132 Subsection 9(1) (paragraph (c) of the definition of
10
investment)
11
Repeal the paragraph.
12
133 Subsection 9(1) (paragraph (b) of the definition of return)
13
Omit "investment; or", substitute "investment.".
14
134 Subsection 9(1) (paragraph (c) of the definition of return)
15
Repeal the paragraph.
16
135 Paragraph 9(1C)(cb)
17
Repeal the paragraph.
18
136 Subsection 9(9B)
19
Repeal the subsection.
20
137 Subsection 10B(2) (paragraph (ca) of the definition of
21
trust)
22
Repeal the paragraph.
23
138 Subsection 23(1) (paragraph (b) of the definition of
24
investment)
25
Omit "(9A); or", substitute "(9A).".
26
First Home Saver Accounts Schedule 1
Consequential amendments Part 2
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
21
139 Subsection 23(1) (paragraph (c) of the definition of
1
investment)
2
Repeal the paragraph.
3
140 Subsection 23(1) (paragraph (b) of the definition of
4
return)
5
Omit "9(1); or", substitute "9(1).".
6
141 Subsection 23(1) (paragraph (c) of the definition of
7
return)
8
Repeal the paragraph.
9
142 Paragraph 1118(1)(fa)
10
Repeal the paragraph.
11
143 Paragraph 1207P(1)(c)
12
Omit "(4)); or", substitute "(4)).".
13
144 Paragraph 1207P(1)(d)
14
Repeal the paragraph.
15
Superannuation (Government Co-contribution for Low
16
Income Earners) Act 2003
17
145 Subparagraph 7(1)(c)(iv)
18
Omit "1997;", substitute "1997.".
19
146 Subparagraphs 7(1)(c)(v) and (vi)
20
Repeal the subparagraphs.
21
Superannuation Industry (Supervision) Act 1993
22
147 Paragraph 29G(2)(f)
23
Omit "29EB;", substitute "29EB.".
24
Schedule 1 First Home Saver Accounts
Part 2 Consequential amendments
22
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
148 Paragraph 29G(2)(v)
1
Repeal the paragraph.
2
149 Subsection 108A(3)
3
Omit all the words after paragraph (b).
4
150 Subsection 108A(3) (note)
5
Repeal the note.
6
Taxation Administration Act 1953
7
151 Subsection 8AAB(4) (table items 4 and 16)
8
Repeal the items.
9
152 Paragraph 15C(8)(c)
10
Repeal the paragraph.
11
153 Paragraph 12-1(3)(b) in Schedule 1
12
Repeal the paragraph, substitute:
13
(b) is not an exempt benefit under section 22 of that Act (about
14
reimbursement of car expenses on the basis of distance
15
travelled).
16
154 Paragraph 45-120(2)(c) in Schedule 1
17
Omit "or".
18
155 Paragraph 45-120(2)(ca) in Schedule 1
19
Repeal the paragraph.
20
156 Paragraph 45-120(2A)(b) in Schedule 1
21
Omit "superannuation/FHSA", substitute "superannuation".
22
157 Paragraph 45-290(2)(c) in Schedule 1
23
Omit "year; or", substitute "year.".
24
158 Paragraph 45-290(2)(d) in Schedule 1
25
Repeal the paragraph.
26
First Home Saver Accounts Schedule 1
Consequential amendments Part 2
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
23
159 Subsection 45-290(3) in Schedule 1
1
Omit "superannuation/FHSA", substitute "superannuation".
2
160 Paragraph 45-330(2)(c) in Schedule 1
3
Omit "year; or", substitute "year.".
4
161 Paragraph 45-330(2)(d) in Schedule 1
5
Repeal the paragraph.
6
162 Subsection 45-330(3) in Schedule 1 (steps 4, 5 and 6 of
7
the method statement)
8
Omit "superannuation/FHSA" (wherever occurring), substitute
9
"superannuation".
10
163 Paragraph 45-370(2)(c) in Schedule 1
11
Omit "year; or", substitute "year.".
12
164 Paragraph 45-370(2)(d) in Schedule 1
13
Repeal the paragraph.
14
165 Subsection 45-370(3) in Schedule 1 (step 2 of the method
15
statement)
16
Omit "superannuation/FHSA", substitute "superannuation".
17
166 Subsection 250-10(2) in Schedule 1 (table items 24D, 24E
18
and 38C)
19
Repeal the items.
20
167 Subsections 286-75(2B) and (2C) in Schedule 1
21
Repeal the subsections.
22
168 Subsection 288-70(1) in Schedule 1 (heading)
23
Repeal the heading, substitute:
24
Schedule 1 First Home Saver Accounts
Part 2 Consequential amendments
24
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
Complying superannuation asset pool--calculation of an amount
1
169 Subsection 288-70(2) in Schedule 1 (heading)
2
Repeal the heading, substitute:
3
Complying superannuation asset pool--transfer following
4
valuation
5
170 Paragraph 288-70(2)(a) in Schedule 1
6
Omit "superannuation/FHSA", substitute "superannuation".
7
171 Subsection 355-65(3) in Schedule 1 (table item 6)
8
Repeal the item.
9
172 Subsection 355-65(4) in Schedule 1 (table item 5)
10
Repeal the item.
11
173 Subsection 355-65(5) in Schedule 1 (cell at table item 2,
12
column headed "and the record or disclosure ... ")
13
Repeal the cell, substitute:
14
(a) is of rental information, residential
address information or spousal
information; and
(b) is for the purpose of administering
the First Home Owner Grant (New
Homes) Act 2000 (NSW), or a
similar
*
State law or
*
Territory law.
174 Division 391 in Schedule 1
15
Repeal the Division.
16
Veterans' Entitlements Act 1986
17
175 Paragraph 5H(8)(ia)
18
Repeal the paragraph.
19
First Home Saver Accounts Schedule 1
Consequential amendments Part 2
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
25
176 Subsection 5J(1) (definition of financial investment)
1
Omit "an investment in an FHSA (within the meaning of the First
2
Home Saver Accounts Act 2008) or".
3
177 Subsection 5J(1) (paragraph (b) of the definition of
4
investment)
5
Omit "(6A); or", substitute "(6A).".
6
178 Subsection 5J(1) (paragraph (c) of the definition of
7
investment)
8
Repeal the paragraph.
9
179 Subsection 5J(1) (paragraph (aa) of the definition of
10
return)
11
Repeal the paragraph.
12
180 Paragraph 5J(1C)(cb)
13
Repeal the paragraph.
14
181 Subsection 5J(6B)
15
Repeal the subsection.
16
182 Subsection 5Q(1) (paragraph (b) of the definition of
17
investment)
18
Omit "subsection 5J(6A); or", substitute "subsection 5J(6A).".
19
183 Subsection 5Q(1) (paragraph (c) of the definition of
20
investment)
21
Repeal the paragraph.
22
184 Subsection 5Q(1) (paragraph (b) of the definition of
23
return)
24
Repeal the paragraph.
25
185 Paragraph 52(1)(faa)
26
Repeal the paragraph.
27
Schedule 1 First Home Saver Accounts
Part 2 Consequential amendments
26
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
186 Paragraph 52ZZB(1)(c)
1
Omit "(4)); or", substitute "(4)).".
2
187 Paragraph 52ZZB(1)(d)
3
Repeal the paragraph.
4
Division 2
--Repeals of Tax Code definitions
5
Income Tax Assessment Act 1997
6
188 Subsection 995-1(1)
7
Repeal the following definitions:
8
(a) definition of complying superannuation/FHSA asset;
9
(b) definition of complying superannuation/FHSA asset pool;
10
(c) definition of complying superannuation/FHSA class;
11
(d) definition of complying superannuation/FHSA liabilities;
12
(e) definition of complying superannuation/FHSA life
13
insurance policy;
14
(f) definition of excluded complying superannuation/FHSA
15
life insurance policy;
16
(g) definition of FHSA;
17
(h) definition of FHSA component;
18
(i) definition of FHSA holder;
19
(j) definition of FHSA home acquisition payment;
20
(k) definition of FHSA ineligibility payment;
21
(l) definition of FHSA misuse tax;
22
(m) definition of FHSA mortgage payment;
23
(n) definition of FHSA payment conditions;
24
(o) definition of FHSA provider;
25
(p) definition of FHSA trust;
26
(q) definition of Government FHSA contribution.
27
First Home Saver Accounts Schedule 1
Consequential amendments Part 2
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
27
Division 3
--Other bulk amendments
1
Income Tax Assessment Act 1997
2
189 The whole of the Act
3
Omit every occurrence of "superannuation/FHSA", substitute
4
"superannuation".
5
190 The whole of the Act
6
Omit every occurrence of "superannuation/FHSA", substitute
7
"superannuation".
8
191 The whole of the Act
9
Omit every occurrence of "superannuation/FHSA", substitute
10
"superannuation".
11
192 The whole of the Act
12
Omit every occurrence of "superannuation/FHSA", substitute
13
"superannuation".
14
Schedule 1 First Home Saver Accounts
Part 3 Amendment of the Omnibus Repeal Day (Spring 2014) Act 2015
28
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
Part 3
--Amendment of the Omnibus Repeal Day
1
(Spring 2014) Act 2015
2
Omnibus Repeal Day (Spring 2014) Act 2015
3
193 Division 2 of Part 1 of Schedule 8 (heading specifying
4
First Home Saver Accounts Act 2008)
5
Repeal the heading.
6
194 Items 4 and 5 of Schedule 8
7
Repeal the items.
8
First Home Saver Accounts Schedule 1
Application and transitional provisions Part 4
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
29
Part 4
--Application and transitional provisions
1
Division 1
--Definitions
2
195 Definitions
3
In this Part:
4
FHSA Act means the First Home Saver Accounts Act 2008, as in force
5
just before the commencement of this item.
6
Division 2
--General provisions
7
196 No new FHSAs
8
(1)
An account, life policy or beneficial interest opened or issued after 7:30
9
pm (by legal time in the Australian Capital Territory) on 13 May 2014
10
is not, and never was, an FHSA.
11
(2)
Subitem (1) does not apply if:
12
(a) the application for that opening or issuing (see
13
paragraph 19(1)(a) of the FHSA Act) was given to the
14
provider before that 7:30 pm; and
15
(b) the account, life policy or beneficial interest was opened or
16
issued on or before 30 June 2015.
17
197 FHSA regime ends on 1 July 2015
18
(1)
On 1 July 2015, an FHSA ceases to be an FHSA.
19
(2)
Despite subitem (1), the repeals and amendments made by this Schedule
20
do not apply in relation to acts done or omitted to be done, or states of
21
affairs existing:
22
(a) before 1 July 2015; or
23
(b) on or after 1 July 2015 as a result of the operation of this Part
24
(including this subitem).
25
Schedule 1 First Home Saver Accounts
Part 4 Application and transitional provisions
30
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
198 Making and amending assessments, and doing other
1
things, in relation to past matters
2
Even though an Act is repealed or amended by this Schedule, the repeal
3
or amendment is disregarded for the purpose of doing any of the
4
following under any Act or legislative instrument:
5
(a) making or amending an assessment (including under a
6
provision that is itself repealed or amended);
7
(b) exercising any right or power, performing any obligation or
8
duty or doing any other thing (including under a provision
9
that is itself repealed or amended);
10
in relation to any act done or omitted to be done, any state of affairs
11
existing, or any period ending, before the repeal or amendment applies.
12
199 Saving of provisions about effect of assessments
13
If a provision or part of a provision that is repealed or amended by this
14
Schedule deals with the effect of an assessment, the repeal or
15
amendment is disregarded in relation to assessments made, before or
16
after the repeal or amendment applies, in relation to any act done or
17
omitted to be done, any state of affairs existing, or any period ending,
18
before the repeal or amendment applies.
19
200 Saving of provisions about FHSA misuse tax, general
20
interest charge and interest
21
If:
22
(a) a provision or part of a provision that is repealed or amended
23
by this Schedule provides for the payment of:
24
(i) FHSA misuse tax (within the meaning of the Income
25
Tax Assessment Act 1997, as in force just before the
26
commencement of this item); or
27
(ii) general interest charge (within the meaning of the
28
Taxation Administration Act 1953); or
29
(iii) interest under the Taxation (Interest on Overpayments
30
and Early Payments) Act 1983; and
31
(b) in a particular case, the period in respect of which the tax,
32
charge or interest is payable (whether under the provision or
33
under the Taxation Administration Act 1953) has not begun,
34
or has begun but not ended, when the provision is repealed or
35
amended;
36
First Home Saver Accounts Schedule 1
Application and transitional provisions Part 4
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
31
then, despite the repeal or amendment, the provision or part continues to
1
apply in the particular case until the end of the period.
2
201 Repeals disregarded for the purposes of dependent
3
provisions
4
(1)
If the operation of a provision (the subject provision) of any Act or
5
legislative instrument made under any Act depends to any extent on an
6
Act, or a provision of an Act, that is repealed by this Schedule, the
7
repeal is disregarded so far as it affects the operation of the subject
8
provision.
9
(2)
Subitem (1) does not apply to the repeal of a provision of the Social
10
Security Act 1991 or the Veterans' Entitlements Act 1986 by this
11
Schedule.
12
202 Interaction with other laws
13
(1)
This Division does not limit the operation of section 7 of the Acts
14
Interpretation Act 1901.
15
(2)
This Division has effect subject to Division 3.
16
Division 3
--Specific provisions
17
203 FHSA eligibility requirements
18
(1)
Section 20 of the FHSA Act (including that section as affected by
19
subsection 128A(5)) does not apply, on or after 1 July 2015, in respect
20
of circumstances that arose on or after 1 June 2015.
21
(2)
Section 21 of the FHSA Act does not apply on or after 1 July 2015,
22
even in relation to circumstances that arose before 1 July 2015.
23
(3)
Section 22 of the FHSA Act does not apply, on or after 1 July 2015, in
24
relation to trigger days that occur on or after 17 June 2015.
25
204 Government FHSA contributions
26
(1)
A Government FHSA contribution is not payable for the 2014-15
27
financial year or a later financial year.
28
Schedule 1 First Home Saver Accounts
Part 4 Application and transitional provisions
32
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
(2)
The amendments made by this Schedule do not apply in relation to
1
Government FHSA contributions for the 2013-14 financial year or an
2
earlier financial year.
3
Example: Subsection 345-50(3) of the Income Tax Assessment Act 1997 (which makes
4
Government FHSA contributions not assessable income and not exempt income) applies
5
to a Government FHSA contribution for the 2013-14 year, even if it is paid after the
6
repeal of that subsection by this Schedule.
7
(3)
Despite anything in the FHSA Act or this Schedule, the Commissioner
8
must not pay a Government FHSA contribution after 30 June 2017,
9
unless the relevant income tax return is lodged, or the relevant notice is
10
given, (as mentioned in paragraph 41(2)(a) of the FHSA Act) on or
11
before 30 June 2017.
12
205 Tax file numbers
13
An individual who, just before the commencement of this item:
14
(a) had quoted his or her tax file number to an FHSA provider in
15
connection with the operation or the possible future operation
16
of the FHSA Act and the Superannuation Acts; and
17
(b) holds an FHSA provided by the FHSA provider that is an
18
account;
19
is treated, from that commencement, as having quoted the individual's
20
TFN to the FHSA provider in connection with the account under
21
Division 4 of Part VA of the Income Tax Assessment Act 1936.
22
Dependent spouse tax offset Schedule 2
Main amendments Part 1
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
33
Schedule 2
--Dependent spouse tax offset
1
Part 1
--Main amendments
2
Income Tax Assessment Act 1936
3
1 Subparagraphs 23AB(7)(a)(ii) and (iii)
4
Repeal the subparagraphs, substitute:
5
(ii) the amount worked out using subsection (7A); or
6
2 Subsection 23AB(7) (notes 1 and 2)
7
Repeal the notes.
8
3 Subsection 23AB(7A)
9
Repeal the subsection, substitute:
10
(7A) For the purposes of subparagraph (7)(a)(ii), the amount is equal to
11
50% of the sum of the following rebates (if any) in respect of the
12
year of income:
13
(a) any tax offset to which the taxpayer is entitled under
14
Subdivision 61-A of the Income Tax Assessment Act 1997;
15
(b) any notional tax offset to which the taxpayer is entitled under
16
Subdivision 961-A of the Income Tax Assessment Act 1997.
17
4 Paragraphs 79A(2)(a), (d) and (e)
18
Repeal the paragraphs, substitute:
19
(a) if the taxpayer is a resident of the special area in Zone A, or
20
of the special area in Zone B, in the year of income--an
21
amount equal to the sum of:
22
(i) $1,173; and
23
(ii) an amount equal to 50% of the relevant rebate amount
24
in relation to the taxpayer in relation to the year of
25
income; or
26
(b) if the taxpayer is a resident of Zone A in the year of income
27
but has not resided or actually been in the special area in
28
Zone A or the special area in Zone B during any part of the
29
year of income--an amount equal to the sum of:
30
Schedule 2 Dependent spouse tax offset
Part 1 Main amendments
34
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
(i) $338; and
1
(ii) an amount equal to 50% of the relevant rebate amount
2
in relation to the taxpayer in relation to the year of
3
income; or
4
(c) if the taxpayer is a resident of Zone B in the year of income
5
but has not resided or actually been in Zone A or the special
6
area in Zone B during any part of the year of income--an
7
amount equal to the sum of:
8
(i) $57; and
9
(ii) an amount equal to 20% of the relevant rebate amount
10
in relation to the taxpayer in relation to the year of
11
income; or
12
5 Paragraph 79A(2)(f)
13
Omit "paragraph (e)", substitute "paragraph (c)".
14
6 Subsection 79A(4) (definition of dependent spouse relevant
15
rebate amount)
16
Repeal the definition.
17
7 Subsection 79A(4) (definition of relevant rebate amount)
18
Repeal the definition (including the notes), substitute:
19
relevant rebate amount, in relation to a taxpayer in relation to a
20
year of income, means the sum of the following rebates (if any):
21
(a) any tax offset to which the taxpayer is entitled under
22
Subdivision 61-A of the Income Tax Assessment Act 1997;
23
(b) any notional tax offset to which the taxpayer is entitled under
24
Subdivision 961-A of the Income Tax Assessment Act 1997;
25
(c) any notional tax offset to which the taxpayer is entitled under
26
Subdivision 961-B of the Income Tax Assessment Act 1997.
27
8 Subparagraph 79B(2)(a)(ii)
28
Omit "amount; and", substitute "amount; or".
29
9 Subparagraph 79B(2)(a)(iii)
30
Repeal the subparagraph.
31
Dependent spouse tax offset Schedule 2
Main amendments Part 1
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
35
10 Paragraph 79B(4)(b)
1
Omit "amount; and", substitute "amount."
2
11 Paragraph 79B(4)(c)
3
Repeal the paragraph.
4
12 Subparagraph 79B(4A)(b)(ii)
5
Omit "amount; and", substitute "amount;".
6
13 Subparagraph 79B(4A)(b)(iii)
7
Repeal the subparagraph.
8
14 Subsection 79B(6) (definition of concessional rebate
9
amount)
10
Repeal the definition (including the notes), substitute:
11
concessional rebate amount, in relation to a taxpayer in relation to
12
a year of income, means the sum of the following rebates (if any):
13
(a) any tax offset to which the taxpayer is entitled under
14
Subdivision 61-A of the Income Tax Assessment Act 1997;
15
(b) any notional tax offset to which the taxpayer is entitled under
16
Subdivision 961-A of the Income Tax Assessment Act 1997;
17
(c) any notional tax offset to which the taxpayer is entitled under
18
Subdivision 961-B of the Income Tax Assessment Act 1997.
19
15 Subsection 79B(6) (definition of dependent spouse
20
concessional rebate amount)
21
Repeal the definition.
22
16 Sections 159J, 159JA, 159K, 159L, 159LA and 159M
23
Repeal the sections.
24
Income Tax Assessment Act 1997
25
17 After Division 960
26
Insert:
27
Schedule 2 Dependent spouse tax offset
Part 1 Main amendments
36
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
Division 961--Notional tax offsets
1
Table of Subdivisions
2
961-A Dependant (non-student child under 21 or student) notional
3
tax offset
4
961-B Dependant (sole parent of a non-student child under 21 or
5
student) notional tax offset
6
Subdivision 961-A--Dependant (non-student child under 21 or
7
student) notional tax offset
8
Guide to Subdivision 961-A
9
961-1 What this Subdivision is about
10
This Subdivision provides for a notional tax offset for an income
11
year if you contribute to the maintenance of a non-student child or
12
a student dependant. The notional tax offset can only be taken into
13
account in working out certain tax offsets under the Income Tax
14
Assessment Act 1936.
15
Table of sections
16
Entitlement to the notional tax offset
17
961-5
Who is entitled to the notional tax offset
18
Amount of the notional tax offset
19
961-10
Amount of the dependant (non-student child under 21 or student) notional
20
tax offset
21
961-15
Reduced amounts of the dependant (non-student child under 21 or student)
22
notional tax offset
23
961-20
Reductions to take account of the dependant's income
24
Entitlement to the notional tax offset
25
961-5 Who is entitled to the notional tax offset
26
(1) You are entitled to a notional tax offset for an income year if:
27
Dependent spouse tax offset Schedule 2
Main amendments Part 1
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
37
(a) you are an individual; and
1
(b) you are an Australian resident; and
2
(c) during the year you contribute to the maintenance of another
3
individual (the dependant) who:
4
(i) is less than 25 years of age, and is a full-time student at
5
a school, college or university; or
6
(ii) if subparagraph (i) does not apply--is less than 21 years
7
of age; and
8
(d) during the year:
9
(i) the dependant is an Australian resident; or
10
(ii) you had a domicile in Australia.
11
(2) You may be entitled to more than one notional tax offset for the
12
year under subsection (1) if you contributed to the maintenance of
13
more than one dependant during the year.
14
Note:
The amount of the notional tax offset in relation to each subsequent
15
dependant may only be part of the full amount: see
16
subsection 961-15(1).
17
(3) The notional tax offset only affects your income tax liability as
18
provided for by sections 23AB, 79A and 79B of the Income Tax
19
Assessment Act 1936.
20
Note:
Section 23AB of that Act provides a tax offset for service with an
21
armed force under the control of the United Nations; section 79A
22
provides a tax offset for residents of isolated areas; section 79B
23
provides a tax offset for members of the Defence Force who are
24
serving overseas.
25
Amount of the notional tax offset
26
961-10 Amount of the dependant (non-student child under 21 or
27
student) notional tax offset
28
(1) The amount of the notional tax offset to which you are entitled in
29
relation to a dependant under section 961-5 for an income year is
30
$376.
31
(2) However, if you are entitled to 2 or more such notional tax offsets
32
for the income year in relation to individuals covered by
33
subparagraph 961-5(1)(c)(ii), the amount of the notional tax offset
34
under section 961-5 is:
35
Schedule 2 Dependent spouse tax offset
Part 1 Main amendments
38
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
(a) in relation to the oldest of those individuals--$376; and
1
(b) in relation to each of the others--$282.
2
961-15 Reduced amounts of the dependant (non-student child under
3
21 or student) notional tax offset
4
(1) The amount of the notional tax offset under section 961-10 is
5
reduced by the amount in accordance with subsection (2) of this
6
section if one or more of the following applies:
7
(a) paragraph 961-5(1)(c) applies during part only of the year;
8
(b) paragraph 961-5(1)(d) applies during part only of the year;
9
(c) during the whole or part of the year, 2 or more individuals
10
contribute to the maintenance of the dependant;
11
(d) the dependant only meets the description of the individual
12
covered by subparagraph 961-5(1)(c)(i) or (ii) for part of the
13
year.
14
(2) The amount of a notional tax offset is reduced to an amount that, in
15
the Commissioner's opinion, is a reasonable apportionment in the
16
circumstances, having regard to the applicable matters referred to
17
in paragraphs (1)(a) to (d).
18
961-20 Reductions to take account of the dependant's income
19
The amount of the notional tax offset under sections 961-10 and
20
961-15 in relation to the dependant for the year is reduced by $1
21
for every $4 by which the following exceeds $282:
22
(a) if you contribute to the maintenance of the dependant for the
23
whole of the year--the dependant's
*
adjusted taxable income
24
for offsets for the year;
25
(b) if paragraph (a) does not apply--the dependant's adjusted
26
taxable income for offsets for that part of the year during
27
which you contribute to the dependant's maintenance.
28
Dependent spouse tax offset Schedule 2
Main amendments Part 1
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
39
Subdivision 961-B--Dependant (sole parent of a non-student
1
child under 21 or student) notional tax offset
2
Guide to Subdivision 961-B
3
961-50 What this Subdivision is about
4
This Subdivision provides for a notional tax offset for an income
5
year if you are the sole contributor to the maintenance of a
6
non-student child or a student dependant. The notional tax offset
7
can only be taken into account in working out certain tax offsets
8
under the Income Tax Assessment Act 1936.
9
Table of sections
10
Operative provisions
11
961-55
Who is entitled to the notional tax offset
12
961-60
Amount of the dependant (sole parent of a non-student child under 21 or
13
student) notional tax offset
14
961-65
Reductions to take account of change in circumstances
15
Operative provisions
16
961-55 Who is entitled to the notional tax offset
17
(1) You are entitled to a notional tax offset for an income year if:
18
(a) during the year you have the sole care of another individual
19
(the dependant) who:
20
(i) is less than 25 years of age, and is a full-time student at
21
a school, college or university; or
22
(ii) if subparagraph (i) does not apply--is less than 21 years
23
of age; and
24
(b) you are entitled to a notional tax offset under
25
Subdivision 961-A for the dependant; and
26
(c) during the year you did not have a
*
spouse.
27
(2) Paragraph (1)(c) does not apply if, in the opinion of the
28
Commissioner, because of special circumstances, the paragraph
29
should not apply.
30
Schedule 2 Dependent spouse tax offset
Part 1 Main amendments
40
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
(3) The notional tax offset only affects your income tax liability as
1
provided for by sections 79A and 79B of the Income Tax
2
Assessment Act 1936.
3
Note:
Section 79A of that Act provides a tax offset for residents of isolated
4
areas; section 79B provides a tax offset for members of the Defence
5
Force who are serving overseas.
6
961-60 Amount of the dependant (sole parent of a non-student child
7
under 21 or student) notional tax offset
8
The amount of the notional tax offset to which you are entitled
9
under section 961-55 for an income year is $1,607.
10
Note:
The amount of the offset under this section applies regardless of
11
whether you have one or more dependants that satisfy section 961-55.
12
961-65 Reductions to take account of change in circumstances
13
(1) The amount of the notional tax offset under section 961-60 is
14
reduced in accordance with subsection (2) if:
15
(a) paragraph 961-55(1)(a) applies during only part of the year;
16
or
17
(b) paragraph 961-55(1)(c) does not apply because of
18
subsection 961-55(2).
19
(2) The amount of the notional tax offset is reduced to an amount that,
20
in the Commissioner's opinion, is a reasonable apportionment in
21
the circumstances, having regard to the matters referred to in
22
paragraphs (1)(a) and (b).
23
Dependent spouse tax offset Schedule 2
Consequential amendments Part 2
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
41
Part 2
--Consequential amendments
1
Income Tax Assessment Act 1936
2
18 Subsection 159HA(1)
3
Omit "Sections 159J, 159L and 159Q apply", substitute "Section 159Q
4
applies".
5
19 Subsection 159HA(6A)
6
Repeal the subsection.
7
20 Subsection 159HA(7) (table items 1, 2 and 3)
8
Repeal the items.
9
21 Subsection 159P(4) (paragraphs (c), (ca) and (d) of the
10
definition of dependant)
11
Repeal the paragraphs.
12
22 Subsection 159P(4) (at the end of the definition of
13
dependant)
14
Add:
15
; or (g) a person in respect of whom the taxpayer is entitled to a
16
notional tax offset under Subdivision 961-A of the Income
17
Tax Assessment Act 1997.
18
23 Subsection 251R(4)
19
Omit "would be entitled to a rebate in respect of that child under
20
section 159J in the person's assessment in respect of income of that year
21
of income but for subsections 159J(1A) and (1F)", substitute "is entitled
22
to a notional tax offset in respect of that child under Subdivision 961-A
23
of the Income Tax Assessment Act 1997".
24
Income Tax Assessment Act 1997
25
24 Section 13-
1 (table item headed "child/housekeeper")
26
Repeal the item.
27
Schedule 2 Dependent spouse tax offset
Part 2 Consequential amendments
42
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
25 Section 13-
1 (table item headed "dependants")
1
Omit:
2
child of person keeping house for the person ..................... 159J
housekeeper, caring for child, invalid relative or
disabled spouse ..............................................................
159L
invalid relative, invalid spouse or carer in receipt of
carer benefit ...................................................................
159J,
Subdivision 61-A
parents/parents in law .......................................................... 159J
spouse .................................................................................. 159J
substitute:
3
invalid relative, invalid spouse or carer in receipt of
carer benefit ...................................................................
Subdivision 61-A
26 Section 13-
1 (table items headed "housekeeper",
4
"parent/parent-in-law" and "spouse")
5
Repeal the items.
6
27 Subparagraph 61-10(1)(c)(ii)
7
Omit "Australia; and", substitute "Australia.".
8
28 Paragraphs 61-10(1)(d) and (e)
9
Repeal the paragraphs.
10
29 Subsection 61-10(1) (note)
11
Repeal the note.
12
Medicare Levy Act 1986
13
30 Paragraphs 8(1)(b), (c) and (d)
14
Repeal the paragraphs, substitute:
15
(b) is entitled to a tax offset under Subdivision 61-A of the
16
Income Tax Assessment Act 1997 for the year of income in
17
respect of the person's child (within the meaning of that Act);
18
or
19
(c) is entitled to a notional tax offset under Subdivision 961-B of
20
the Income Tax Assessment Act 1997 for the year of income;
21
Dependent spouse tax offset Schedule 2
Consequential amendments Part 2
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
43
31 Paragraphs 8(2)(b), (c) and (d)
1
Repeal the paragraphs, substitute:
2
(b) is entitled to a tax offset under Subdivision 61-A of the
3
Income Tax Assessment Act 1997 for the year of income in
4
respect of the person's child (within the meaning of that Act);
5
or
6
(c) is entitled to a notional tax offset under Subdivision 961-B of
7
the Income Tax Assessment Act 1997 for the year of income;
8
32 Subsection 8(5) (definition of family income threshold)
9
Repeal the definition, substitute:
10
family income threshold, in relation to a person (the relevant
11
person), means $35,261 increased by $3,238 for each person
12
covered by paragraph 961-5(1)(c) of the Income Tax Assessment
13
Act 1997 in respect of whom:
14
(a) in a case to which paragraph (b) does not apply--the relevant
15
person; or
16
(b) if the relevant person was a married person on the last day of
17
the year of income--the relevant person or the spouse of the
18
relevant person;
19
is entitled to a notional tax offset under Subdivision 961-A of the
20
Income Tax Assessment Act 1997 for the year of income.
21
Tax and Superannuation Laws Amendment (2014 Measures
22
No. 1) Act 2014
23
33 Items 4 and 5 of Schedule 3
24
Repeal the items, substitute:
25
4 Section 159HA
26
Repeal the section.
27
Schedule 2 Dependent spouse tax offset
Part 3 Technical amendments
44
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
Part 3
--Technical amendments
1
Income Tax Assessment Act 1997
2
34 Subsection 61-15(3)
3
Repeal the subsection.
4
35 At the end of section 61-25
5
Add:
6
Note:
Clause 31 of Schedule 1 to the A New Tax System (Family Assistance)
7
Act 1999 reduces the standard rate for the family tax benefit to take
8
account of shared care percentages.
9
36 Paragraph 61-40(1)(f)
10
Before "during", insert "the other individual is your spouse, and,".
11
37 Subsection 61-40(2)
12
Omit "is reasonable", substitute "is a reasonable apportionment".
13
Dependent spouse tax offset Schedule 2
Application of amendments Part 4
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
45
Part 4
--Application of amendments
1
38 Application of amendments
--Parts 1 and 2
2
The amendments made by Parts 1 and 2 of this Schedule apply in
3
relation to assessments for the 2014-15 income year and later income
4
years.
5
39 Application of amendments
--Part 3
6
The amendments made by Part 3 of this Schedule apply in relation to
7
assessments for the 2012-13 income year and later income years.
8
Schedule 3 Offshore banking units
Part 1 Trading in subsidiaries
46
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
Schedule 3
--Offshore banking units
1
Part 1
--Trading in subsidiaries
2
Income Tax Assessment Act 1936
3
1 Paragraph 121D(1)(c)
4
After "subsection (4)", insert "(subject to subsection (4A))".
5
2 After subsection 121D(4)
6
Insert:
7
(4A) However, paragraph (1)(c) does not apply to a trading activity done
8
by an OBU if:
9
(a) the thing traded in affected the OBU's total participation
10
interest (within the meaning of the Income Tax Assessment
11
Act 1997) in another entity; and
12
(b) just before the trading activity:
13
(i) the OBU's total participation interest in the other entity
14
was at least 10%; or
15
(ii) any of the thing traded in was held by the OBU, and
16
was not recorded in the OBU's accounting records as
17
held for trading in accordance with accounting standards
18
(within the meaning of that Act).
19
(4B) For the purposes of subsection (4A), disregard rights on
20
winding-up.
21
Offshore banking units Schedule 3
The choice principle Part 2
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
47
Part 2
--The choice principle
1
Income Tax Assessment Act 1936
2
3 Paragraph 121B(2)(a)
3
Repeal the paragraph, substitute:
4
(a) OB activity (sections 121D, 121EA and 121EAA) together
5
with the related definition of offshore person (section 121E);
6
and
7
4 Section 121C
8
Insert:
9
non-OB accounting records has the meaning given by
10
subsection 121EAA(3).
11
5 Subsection 121D(1)
12
Omit ", provided that the requirement relating to the OBU in
13
section 121EA is met", substitute "(subject to sections 121EA and
14
121EAA)".
15
6 After section 121EA
16
Insert:
17
121EAA Activities recorded in domestic books not OB activities
18
(1) An OBU may, when it does a thing that would otherwise be an OB
19
activity of the OBU, choose to have the thing not be an OB
20
activity.
21
Accounting records
22
(2) The OBU recording the thing in the OBU's non-OB accounting
23
records is sufficient evidence of the making of the choice, if the
24
OBU uses money in the thing.
25
Note 1:
The OBU must maintain accounting records, separate from its non-OB
26
accounting records, in respect of money used in its OB activities: see
27
subsection 262A(1A).
28
Schedule 3 Offshore banking units
Part 2 The choice principle
48
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
Note 2:
Subsection (2) of this section and subsection 262A(1A) do not apply if
1
the OBU does not use money in the thing, but the OBU must keep
2
documents containing particulars of the choice: see
3
paragraph 262A(2)(b).
4
Note 3:
Subsection (2) does not prevent the OBU from correcting a mistake in
5
its accounting records.
6
(3) The OBU's non-OB accounting records are the OBU's accounting
7
records, other than the accounting records maintained in respect of
8
money used in the OBU's OB activities under
9
subsection 262A(1A).
10
Grouping
11
(4) The OBU is treated as having chosen under subsection (1) to have
12
a thing (the transaction) done by the OBU not be an OB activity if:
13
(a) it is reasonable to regard the transaction and one or more
14
other things done by the OBU as constituting a single scheme
15
(within the meaning of the Income Tax Assessment Act
16
1997); and
17
(b) the OBU chooses under subsection (1) to have any of those
18
other things done by the OBU not be an OB activity.
19
(5) For the purposes of subsection (4), whether the transaction and one
20
or more other things constitute a single scheme is a question of fact
21
and degree determined having regard to the following (whichever
22
are applicable):
23
(a) the nature of the transaction and the other things;
24
(b) their terms and conditions (including those relating to any
25
payment or other consideration for them);
26
(c) the circumstances surrounding their creation and their
27
proposed exercise or performance (including what can
28
reasonably be seen as the purposes of one or more of the
29
entities involved);
30
(d) whether they can be dealt with separately or must be dealt
31
with together;
32
(e) normal commercial understandings and practices in relation
33
to them (including whether they are regarded commercially
34
as separate things or as a group or series that forms a whole);
35
(f) the objects of this Division.
36
Offshore banking units Schedule 3
The choice principle Part 2
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
49
(6) In applying subsection (5), have regard to the matters mentioned in
1
paragraphs (5)(a) to (f) both:
2
(a) in relation to the transaction and other things separately; and
3
(b) in relation to the transaction and other things in combination
4
with each other.
5
7 Subsection 121EB(1)
6
Omit "121EA", substitute "121EAA".
7
Schedule 3 Offshore banking units
Part 3 Allocation of expenses
50
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
Part 3
--Allocation of expenses
1
Income Tax Assessment Act 1936
2
8 Subsection 6(1)
3
Insert:
4
statutory income has the meaning given by the Income Tax
5
Assessment Act 1997.
6
9 Paragraph 121B(2)(b)
7
Repeal the paragraph, substitute:
8
(b) special income and allowable deduction definitions relating
9
to OB activities (sections 121EDA to 121EF).
10
10 Section 121C (definition of assessable OB income)
11
Repeal the definition, substitute:
12
assessable OB income has the meaning given by
13
subsection 121EE(2).
14
11 Section 121C
15
Insert:
16
OB income has the meaning given by section 121EDA.
17
12 Section 121E
18
Omit "For the purposes of section 121D, a reference in that section",
19
substitute "A reference".
20
13 After section 121ED
21
Insert:
22
Offshore banking units Schedule 3
Allocation of expenses Part 3
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
51
121EDA Meaning of OB income
1
OB income
2
(1) Subject to subsections (2) to (5), the OB income of an OBU of a
3
year of income is so much of the OBU's ordinary income and
4
statutory income of the year of income as is:
5
(a) derived from OB activities of the OBU or the part of the
6
OBU to which paragraph 121EB(1)(c) applies; or
7
(b) included in the statutory income because of such activities.
8
(2) Subsection (1) does not apply to amounts included under Part 3-1
9
of the Income Tax Assessment Act 1997 (about capital gains).
10
(3) Subsection (1) does not apply to the extent that the money lent,
11
invested or otherwise used in carrying on the OB activities is
12
non-OB money of the OBU.
13
(4) A typical example of an amount covered by the exception in
14
subsection (3) is interest derived from the OB activity of lending
15
money to an offshore person, where the money lent is non-OB
16
money.
17
Reduction of OB income because of certain investment activities
18
(5) Ordinary or statutory income that:
19
(a) would otherwise be taken into account under subsection (1);
20
and
21
(b) is derived from an investment activity (within the meaning of
22
subsection 121D(6A) or (6B)) included in OB activities of
23
the OBU or the part of the OBU to which
24
paragraph 121EB(1)(c) applies;
25
is reduced by the average Australian asset percentage (within the
26
meaning of subsection 121DA(2)) of the portfolio investment
27
concerned.
28
14 Subsections 121EE(2) to (3A)
29
Repeal the subsections, substitute:
30
Schedule 3 Offshore banking units
Part 3 Allocation of expenses
52
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
Assessable OB income
1
(2) The assessable OB income of an OBU is so much of the OBU's
2
OB income of the year of income as is assessable income.
3
15 Subsection 121EF(4)
4
Repeal the subsection, substitute:
5
General OB deduction
6
(4) A deduction that:
7
(a) is none of the following:
8
(i) a loss deduction;
9
(ii) an apportionable deduction;
10
(iii) an exclusive OB deduction;
11
(iv) an exclusive non-OB deduction; and
12
(b) is allowable from the OBU's assessable income of the year of
13
income;
14
is a general OB deduction to the extent that:
15
(c) it is incurred in gaining or producing the OB income of the
16
OBU; or
17
(d) it is necessarily incurred in carrying on a business for the
18
purpose of gaining or producing the OB income of the OBU.
19
16 Paragraph 121EH(a)
20
Omit "subsection 121EE(2)", substitute "subsection 121EDA(3)".
21
Offshore banking units Schedule 3
Eligible OB activities Part 4
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
53
Part 4
--Eligible OB activities
1
Income Tax Assessment Act 1936
2
17 Section 121C (definition of eligible contract)
3
Repeal the definition, substitute:
4
eligible contract means:
5
(a) any of the following:
6
(i) a futures contract;
7
(ii) a forward contract;
8
(iii) an options contract;
9
(iv) a swap contract;
10
(v) a cap, collar, floor or similar contract; or
11
(b) a loan contract; or
12
(c) a securities lending or repurchase arrangement; or
13
(d) a non-deliverable forward foreign currency contract.
14
18 Section 121C
15
Insert:
16
OB advisory activity has the meaning given by section 121DC.
17
OB eligible contract activity has the meaning given by
18
section 121DB.
19
OB leasing activity has the meaning given by section 121DD.
20
offshore property means property that:
21
(a) cannot be in Australia; or
22
Example: Land outside Australia.
23
(b) is used, or will be used:
24
(i) wholly outside Australia; or
25
(ii) in Australia to an extent that is not material.
26
19 Paragraph 121D(1)(d)
27
Repeal the paragraph, substitute:
28
Schedule 3 Offshore banking units
Part 4 Eligible OB activities
54
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
(d) an OB eligible contract activity (see section 121DB); or
1
20 Paragraph 121D(1)(f)
2
Repeal the paragraph, substitute:
3
(f) an OB advisory activity (see section 121DC); or
4
21 After paragraph 121D(1)(g)
5
Insert:
6
(ga) an OB leasing activity (see section 121DD); or
7
22 Paragraph 121D(2)(b)
8
After "lending money", insert ", or making commitments to lend
9
money,".
10
23 At the end of subsection 121D(2)
11
Add:
12
; or (e) acting as an arranger in a syndicated lending arrangement
13
that includes a borrowing or lending activity to which
14
paragraph (a), (b), (c) or (d) applies.
15
24 Paragraphs 121D(3)(a) and (b)
16
Repeal the paragraphs, substitute:
17
(a) providing a guarantee or letter of credit to an offshore person
18
in relation to activities that are, or will be, conducted:
19
(i) wholly outside Australia; or
20
(ii) in Australia to an extent that is not material; or
21
(b) underwriting a risk for an offshore person in respect of:
22
(i) offshore property; or
23
(ii) an event, if the likelihood of the event happening in
24
Australia is not material; or
25
25 Paragraph 121D(3)(d)
26
Repeal the paragraph, substitute:
27
(d) issuing a performance bond to an offshore person in relation
28
to activities that are, or will be, conducted:
29
(i) wholly outside Australia; or
30
(ii) in Australia to an extent that is not material;
31
Offshore banking units Schedule 3
Eligible OB activities Part 4
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
55
26 After paragraph 121D(4)(a)
1
Insert:
2
(aa) trading with any person in non-deliverable forward foreign
3
currency contracts; or
4
27 At the end of subsection 121D(4)
5
Add:
6
; or (i) trading with an offshore person in commodities, or in options
7
or rights in respect of commodities, if:
8
(i) the commodities, options or rights are not mentioned in
9
another paragraph of this subsection; and
10
(ii) the trading is incidental to an OB eligible contract
11
activity.
12
28 Subsection 121D(5)
13
Repeal the subsection.
14
29 Paragraph 121D(6A)(e)
15
Omit "subsection 121DA(5)); and", substitute "subsection 121DA(5)).".
16
30 Paragraph 121D(6A)(f)
17
Repeal the paragraph.
18
31 Subsection 121D(7)
19
Repeal the subsection.
20
32 After section 121DA
21
Insert:
22
121DB Meaning of OB eligible contract activity
23
An OB eligible contract activity is entering into an eligible
24
contract (other than a loan contract that is not a securities lending
25
or repurchase arrangement) with:
26
(a) an offshore person; or
27
(b) if the eligible contract is a non-deliverable forward foreign
28
currency contract--any person.
29
Schedule 3 Offshore banking units
Part 4 Eligible OB activities
56
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
121DC Meaning of OB advisory activity
1
(1) An OB advisory activity is giving investment or other financial
2
advice to an offshore person, including advice about disposing of
3
an investment.
4
(2) Giving advice about the making of a particular investment is not an
5
OB advisory activity unless the investment is of a kind mentioned
6
in subsection 121D(6) (Investment activity).
7
(3) Subsection (2) does not exclude giving advice about a particular
8
investment of a different kind if doing so is incidental to advising
9
on an investment of a kind mentioned in subsection 121D(6) (for
10
example for the purpose of comparison or because the investments
11
are commercially related).
12
(4) To avoid doubt, for the purposes of this section, advice about
13
disposing of an investment is not advice about the making of the
14
investment.
15
121DD Meaning of OB leasing activity
16
(1) An OB leasing activity is leasing activity with an offshore person
17
involving offshore property.
18
(2) Without limiting subsection (1), OB leasing activity includes
19
entering into:
20
(a) any arrangement (within the meaning of section 51AD) under
21
which a right to use offshore property is granted by the owner
22
to another person; or
23
(b) any arrangement (within the meaning of that section) under
24
which a right to use offshore property, being a right derived
25
directly or indirectly from a right mentioned in paragraph (a)
26
in relation to the property, is granted by a person to another
27
person;
28
with an offshore person.
29
Offshore banking units Schedule 3
Internal financial dealings Part 5
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
57
Part 5
--Internal financial dealings
1
Income Tax Assessment Act 1936
2
33 At the end of section 121EB
3
Add:
4
Arm's length pricing
5
(4) For the purposes of this Division, treat an amount that, because of
6
subsections (1) to (3):
7
(a) is included in the OBU's OB income; or
8
(b) is an allowable OB deduction of the OBU;
9
as being the amount that would be so included, or that would be the
10
amount of the allowable OB deduction, were the OBU and the
11
permanent establishments mentioned in paragraph (1)(d) dealing
12
with each other at arm's length.
13
(5) For the purposes of determining the effect subsection (4) has in
14
relation to the amount that is included or allowable, work out the
15
arm's length dealing so as best to achieve consistency with:
16
(a) the documents covered by section 815-235 of the Income Tax
17
Assessment Act 1997 (Guidance); and
18
(b) subject to paragraph (a), the documents covered by
19
section 815-135 of that Act.
20
Schedule 3 Offshore banking units
Part 6 Application of amendments
58
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
Part 6
--Application of amendments
1
34 Application of amendments
2
(1)
The amendments made by this Schedule (other than Part 2) apply in
3
relation to years of income starting on or after 1 July 2015.
4
(2)
The amendments made by Part 2 apply in relation to a thing an OBU
5
does on or after 1 July 2015.
6
Exemption for Global Infrastructure Hub Ltd Schedule 4
Amendments commencing day after Royal Assent Part 1
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
59
Schedule 4
--Exemption for Global
1
Infrastructure Hub Ltd
2
Part 1
--Amendments commencing day after Royal
3
Assent
4
Income Tax Assessment Act 1997
5
1 Section 11-
5 (table item headed "primary or secondary
6
resources, and tourism")
7
Before:
8
horticultural society etc. ..................................................... 50-40
insert:
9
Global Infrastructure Hub Ltd ........................................... 50-40
2 Section 50-40 (at the end of the table)
10
Add:
11
8.4
Global Infrastructure Hub Ltd
only amounts included in assessable
income:
(a) on or after 24 December 2014;
and
(b) before 1 July 2019
Schedule 4 Exemption for Global Infrastructure Hub Ltd
Part 2 Sunsetting on 1 July 2021
60
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
Part 2
--Sunsetting on 1 July 2021
1
Income Tax Assessment Act 1997
2
3 Section 11-
5 (table item headed "primary or secondary
3
resources, and tourism")
4
Omit:
5
Global Infrastructure Hub Ltd ........................................... 50-40
4 Section 50-40 (table item 8.4)
6
Repeal the item.
7
Deductible gift recipient extensions Schedule 5
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
61
Schedule 5
--Deductible gift recipient
1
extensions
2
3
Income Tax Assessment Act 1997
4
1 Subsection 30-50(2) (table items 5.2.32 and 5.2.33)
5
Omit "1 January 2015", substitute "1 January 2018".
6
Tax and Superannuation Laws Amendment (2013 Measures
7
No. 2) Act 2013
8
2 Subsection 2(1) (table item 8)
9
Repeal the item, substitute:
10
8. Schedule 4,
Part 2, Division 1
1 July 2022.
1 July 2022
3 Division 1 of Part 2 of Schedule 4 (heading)
11
Repeal the heading, substitute:
12
Division 1--Repeal on 1 July 2022
13
Schedule 6 Miscellaneous amendments
Part 1 General amendments
62
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
Schedule 6
--Miscellaneous amendments
1
Part 1
--General amendments
2
A New Tax System (Goods and Services Tax) Act 1999
3
1 Section 23-1 (diagram)
4
Repeal the diagram, substitute:
5
6
7
2 Paragraph 134-10(1)(e)
8
Omit "from you", substitute "you make".
9
Charities (Consequential Amendments and Transitional
10
Provisions) Act 2013
11
3 Item 31 of Schedule 1
12
Omit "trusts", substitute "trust".
13
Are you carrying on an enterprise?
(see section 9-20)
You can't be registered
Does your GST turnover meet the
registration turnover threshold?
(see section 23-15)
No
Yes
You may be registered
(see section 23-10)
No
You are required to be registered
(see section 23-5 and
Divisions 57, 58 and 144)
Yes
Miscellaneous amendments Schedule 6
General amendments Part 1
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
63
Fringe Benefits Tax Assessment Act 1986
1
4 Subsection 136(1) (subparagraph (b)(iii) of the definition of
2
in-house residual fringe benefit)
3
Omit "property", substitute "benefits".
4
Fuel Tax Act 2006
5
5 Subsection 3-5(3) (table)
6
Repeal the table, substitute:
7
Common definitions that are not asterisked
Item
This term:
1
Commissioner
2
entity
3
fuel tax
4
fuel tax credit
5
indirect tax zone
6
taxable fuel
7
you
6 Subsections 41-5(1) and 41-10(1), (2) and (3)
8
Omit "Australia", substitute "the indirect tax zone".
9
7 Section 42-5
10
Omit "Australia", substitute "the indirect tax zone".
11
8 Paragraph 43-7(5)(a)
12
Omit "Australia", substitute "the indirect tax zone".
13
9 Section 110-5 (definition of Australia)
14
Repeal the definition.
15
10 Section 110-5
16
Insert:
17
Schedule 6 Miscellaneous amendments
Part 1 General amendments
64
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
indirect tax zone has the meaning given by section 195-1 of the
1
*
GST Act.
2
11 Section 110-5 (paragraph (d) of the definition of taxable
3
fuel)
4
Omit "Australia", substitute "the indirect tax zone".
5
12 Application
6
The amendments of the Fuel Tax Act 2006 made by this Part apply to
7
taxable fuel acquired, manufactured or imported on or after 1 July 2015.
8
Income Tax Assessment Act 1997
9
13 Section 13-
1 (table item headed "primary production")
10
Omit:
11
farm household allowance see social security and
other benefit payments ..................................................
substitute:
12
farm household allowance see social security and
other benefit payments
14 Section 13-1
(table item headed "social security and other
13
benefit payments")
14
Omit:
15
farm household allowance under the Farm Household
Support Act 2014 see unemployment, sickness and
other benefit payments under the Social Security
Act 1991 .........................................................................
substitute:
16
farm household allowance under the Farm Household
Support Act 2014 see unemployment, sickness and
other benefit payments under the Social Security
Act 1991
15 Paragraph 25-110(1)(a)
17
Omit "
*
carrying on", substitute "carrying on".
18
Miscellaneous amendments Schedule 6
General amendments Part 1
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
65
16 Paragraph 26-47(3)(b)
1
Omit "
*
carry on", substitute "carry on".
2
17 Paragraph 30-242(3A)(b)
3
Omit "
*
carrying on", substitute "carrying on".
4
18 Paragraph 35-5(1)(a)
5
Omit "
*
carried on", substitute "carried on".
6
19 Subsection 35-5(2)
7
Omit "
*
carrying on", substitute "carrying on".
8
20 Subsection 35-10(2A)
9
Omit "
*
carry on", substitute "carry on".
10
21 Paragraph 35-10(2B)(a)
11
Omit "
*
carry on", substitute "carry on".
12
22 Subsections 35-10(2C) and (2D)
13
Omit "
*
carried on", substitute "carried on".
14
23 Paragraphs 40-880(1)(c) and (2)(b)
15
Omit "
*
carried on", substitute "carried on".
16
24 Subsections 40-880(3) and (4)
17
Omit "
*
carry on", substitute "carry on".
18
25 Subsection 40-880(7)
19
Omit "
*
carried on", substitute "carried on".
20
26 Paragraph 41-20(1)(d)
21
Omit "
*
carrying on", substitute "carrying on".
22
27 Subparagraph 83A-130(1)(a)(ii)
23
After "of the old company", insert "or a
*
demerger subsidiary of the old
24
company".
25
Schedule 6 Miscellaneous amendments
Part 1 General amendments
66
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
28 Application
1
The amendment of section 83A-130 of the Income Tax Assessment Act
2
1997 made by this Part applies in relation to ESS interests acquired on
3
or after 1 July 2009.
4
29 Section 104-5 (cell at table item dealing with CGT event
5
K1, column headed "Event number and description")
6
Omit "
*
Kyoto unit or an
*
Australian carbon credit unit", substitute
7
"Kyoto unit or an Australian carbon credit unit".
8
30 Section 112-97 (table item
18A, column headed "In this
9
situation")
10
Omit "
*
Kyoto unit", substitute "Kyoto unit".
11
31 Subsection 219-30(1)
12
Omit "items 2 and 3", substitute "items 2 and 2A".
13
32 Subsection 316-65(1) (definitions of embedded value of
14
the friendly society's other business (if any) and market
15
value of the friendly society's health insurance
16
business (if any))
17
Omit "
*
carried on", substitute "carried on".
18
33 Paragraphs 415-15(3)(b) and 415-20(1)(b) and (2)(b)
19
Omit "
*
carries on", substitute "carries on".
20
34 Paragraph 415-20(4)(a)
21
Omit "
*
carrying on", substitute "carrying on".
22
35 Subsection 995-1(1) (definition of available frankable
23
profits)
24
Omit "give", substitute "given".
25
36 Subsection 995-1(1) (paragraph (a) of the definition of
26
foreign resident life insurance policy)
27
Omit "
*
carrying on", substitute "carrying on".
28
Miscellaneous amendments Schedule 6
General amendments Part 1
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
67
37 Subsection 995-1(1)
1
Insert:
2
taxable dealing, in relation to
*
wine, has the meaning given by
3
section 33-1 of the
*
Wine Tax Act.
4
wine has the meaning given by Subdivision 31-A of the
*
Wine Tax
5
Act.
6
38 Subsection 995-1(1) (definition of wine taxable dealing)
7
Repeal the definition.
8
Income Tax Rates Act 1986
9
39 Section 12B (the section 12B inserted by item 1 of
10
Schedule 1 to the Income Tax Rates Amendment
11
(Temporary Flood and Cyclone Reconstruction Levy)
12
Act 2011)
13
Renumber as section 12C.
14
Income Tax Rates Amendment (Temporary Flood and
15
Cyclone Reconstruction Levy) Act 2011
16
40 Item 1 of Schedule 2 (heading)
17
Omit "12B", substitute "12C".
18
Minerals Resource Rent Tax (Consequential Amendments
19
and Transitional Provisions) Act 2012
20
41 Item 16 of Schedule 3
21
Omit "
*
mining operations", substitute "mining operations".
22
Product Stewardship (Oil) Act 2000
23
42 After section 4
24
Insert:
25
Schedule 6 Miscellaneous amendments
Part 1 General amendments
68
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
4A Alternative constitutional basis
1
(1) Without limiting its effect apart from this section, this Act also has
2
effect as provided by this section.
3
(2) This Act also has the effect it would have if its operation in relation
4
to product stewardship (oil) benefits were expressly confined to an
5
operation limited to product stewardship (oil) benefits in relation to
6
external affairs.
7
(3) This Act also has the effect it would have if its operation in relation
8
to product stewardship (oil) benefits were expressly confined to an
9
operation limited to product stewardship (oil) benefits in relation to
10
taxation.
11
Superannuation (Government Co-contribution for Low
12
Income Earners) Act 2003
13
43 Paragraph 16(1)(d)
14
Omit "approved form", substitute "approved form,".
15
44 Subsection 16(3)
16
Omit "the prescribed information", substitute "a statement, in the
17
approved form,".
18
45 Paragraph 20(1)(d)
19
Omit "approved form", substitute "approved form,".
20
46 Subsection 20(3)
21
Omit "the prescribed information", substitute "a statement, in the
22
approved form,".
23
Tax Agent Services Act 2009
24
47 Subparagraph 20-5(2)(c)(ii)
25
Omit "; and; or", substitute "; or".
26
48 Subparagraph 20-5(2)(c)(iii)
27
Omit "arrangements.", substitute "arrangements; and".
28
Miscellaneous amendments Schedule 6
General amendments Part 1
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
69
49 Subparagraph 20-5(3)(d)(ii)
1
Omit "; and; or", substitute "; or".
2
50 Subparagraph 20-5(3)(d)(iii)
3
Omit "arrangements.", substitute "arrangements; and".
4
Taxation Administration Act 1953
5
51 Subsection 12-390(4) in Schedule 1 (note)
6
After "If the recipient", insert "is".
7
52 Section 105-1 in Schedule 1
8
Omit "your address for service of documents and".
9
53 Section 105-140 in Schedule 1
10
Repeal the section.
11
54 Application
12
The amendments of sections 105-1 and 105-140 in Schedule 1 to the
13
Taxation Administration Act 1953 made by this Part apply on and after
14
1 July 2015.
15
55 Subsection 111-60(1) in Schedule 1
16
Omit "or a
*
wine taxable dealing", substitute ", or a
*
taxable dealing in
17
relation to
*
wine,".
18
56 Paragraph 382-5(2)(c) in Schedule 1
19
Omit "
*
wine taxable dealing", substitute "
*
taxable dealing, in relation to
20
*
wine,".
21
57 Paragraph 426-55(1)(a) in Schedule 1
22
Repeal the paragraph, substitute:
23
(a) at any time after the date of effect of the endorsement, the
24
entity is not, or was not, entitled to be endorsed; or
25
58 Subsection 426-55(3) in Schedule 1
26
After "is not", insert ", or was not,".
27
Schedule 6 Miscellaneous amendments
Part 1 General amendments
70
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
59 Application of amendments
1
The amendments of section 426-55 in Schedule 1 to the Taxation
2
Administration Act 1953 made by this Part apply to a decision, on or
3
after the commencement of this Part, to revoke an endorsement
4
(regardless of when the endorsement took effect).
5
Taxation (Deficit Reduction) Act (No. 3) 1993
6
60 Subsection 2(3)
7
Repeal the subsection.
8
61 Division 4 of Part 2
9
Repeal the Division.
10
Taxation (Interest on Overpayments and Early Payments)
11
Act 1983
12
62 Subparagraph 12A(1)(a)(i)
13
Omit "and subsection 204(3) of the Tax Act", substitute "of the Tax Act
14
or section 5-15 of the Income Tax Assessment Act 1997".
15
63 Application
16
The amendment of section 12A of the Taxation (Interest on
17
Overpayments and Early Payments) Act 1983 made by this Part is taken
18
to have applied from the commencement of Schedule 1 to the Tax Laws
19
Amendment (Transfer of Provisions) Act 2010.
20
Treasury Legislation Amendment (Repeal Day) Act 2015
21
64 Item 73 of Schedule 2
22
Omit "Schedule", substitute "Part of this Schedule".
23
Miscellaneous amendments Schedule 6
Consequential amendments relating to the Public Governance, Performance and
Accountability Act 2013 Part 2
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
71
Part 2
--Consequential amendments relating to the
1
Public Governance, Performance and
2
Accountability Act 2013
3
Australian Charities and Not-for-profits Commission Act
4
2012
5
65 Section 110-15 (note)
6
Repeal the note, substitute:
7
Note:
The expenditure of relevant money (within the meaning of the Public
8
Governance, Performance and Accountability Act 2013) must comply
9
with the requirements in that Act.
10
66 Section 115-30
11
Repeal the section, substitute:
12
115-30 Disclosure of interests
13
(1) A disclosure by the Commissioner under
section 29 of the Public
14
Governance, Performance and Accountability Act 2013 (which
15
deals with the duty to disclose interests) must be made to the
16
Minister.
17
(2) Subsection (1) applies in addition to any rules made for the
18
purposes of that section.
19
(3) For the purposes of this Act and the Public Governance,
20
Performance and Accountability Act 2013, the Commissioner is
21
taken not to have complied with section 29 of that Act if the
22
Commissioner does not comply with subsection (1) of this section.
23
67 Paragraph 115-50(2)(c)
24
Repeal the paragraph, substitute:
25
(c) the Commissioner fails, without reasonable excuse, to
26
comply with section 29 of the Public Governance,
27
Performance and Accountability Act 2013 (which deals with
28
Schedule 6 Miscellaneous amendments
Part 2 Consequential amendments relating to the Public Governance, Performance and
Accountability Act 2013
72
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
the duty to disclose interests) or rules made for the purposes
1
of that section; or
2
68 Subsection 125-5(1)
3
Omit "(the Account)".
4
69 Subsection 125-5(2)
5
Repeal the subsection, substitute:
6
(2) The account is a special account for the purposes of the Public
7
Governance, Performance and Accountability Act 2013.
8
70 Section 125-10 (heading)
9
Repeal the heading, substitute:
10
125-10 Credits to the account
11
71 Section 125-10
12
Omit "Account" (first, second and third occurring), substitute
13
"account".
14
72 Section 125-10 (note)
15
Omit "Special Account if any of the purposes of the Account",
16
substitute "special account if any of the purposes of the special
17
account".
18
73 Section 125-15 (heading)
19
Repeal the heading, substitute:
20
125-15 Purposes of the account
21
74 Section 125-15
22
Omit "Account" (first and second occurring), substitute "account".
23
75 Section 125-15 (note)
24
Repeal the note, substitute:
25
Note:
See section 80 of the Public Governance, Performance and
26
Accountability Act 2013 (which deals with special accounts).
27
Miscellaneous amendments Schedule 6
Consequential amendments relating to the Public Governance, Performance and
Accountability Act 2013 Part 2
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
73
76 Subsection 135-15(2) (note)
1
Repeal the note, substitute:
2
Note:
The expenditure of relevant money (within the meaning of the Public
3
Governance, Performance and Accountability Act 2013) must comply
4
with the requirements in that Act.
5
77 Section 140-20
6
Repeal the section, substitute:
7
140-20 Disclosure of interests
8
(1) A disclosure by a member of the Advisory Board under
section 29
9
of the Public Governance, Performance and Accountability Act
10
2013 (which deals with the duty to disclose interests) must be
11
made
to the Minister.
12
(2) Subsection (1) applies in addition to any rules made for the
13
purposes of that section.
14
(3)
For the purposes of this Act and the Public Governance,
15
Performance and Accountability Act 2013, t
he member is taken not
16
to have complied with section 29 of that Act if the member does
17
not comply with subsection (1) of this section.
18
78 Subsections 145-5(5), (6) and (7)
19
Repeal the subsections.
20
79 Subsection 175-70(2) (note 1)
21
Omit "Note 1", substitute "Note".
22
80 Subsection 175-70(2) (note 2)
23
Repeal the note.
24
81 Section 300-5 (definition of Account)
25
Repeal the definition.
26
Schedule 7 Investment Manager Regime
Part 1 Main amendments
74
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
Schedule 7
--Investment Manager Regime
1
Part 1
--Main amendments
2
Income Tax Assessment Act 1997
3
1 Subdivision 842-I
4
Repeal the Subdivision, substitute:
5
Subdivision 842-I--Investment manager regime
6
Guide to Subdivision 842-I
7
842-200 What this Subdivision is about
8
This Subdivision sets out rules about the taxation of some foreign
9
residents (known as IMR entities) that invest into or through
10
Australia.
11
Income and capital gains from IMR financial arrangements are not
12
subject to Australian income tax. Deductions and capital losses
13
from IMR financial arrangements are disregarded for the purposes
14
of this Act.
15
Table of sections
16
Object of this Subdivision
17
842-205 Object of this Subdivision
18
IMR concessions
19
842-210 IMR concessions apply only to foreign residents etc.
20
842-215 IMR concessions
21
842-220 Meaning of IMR entity
22
842-225 Meaning of IMR financial arrangement
23
IMR widely held entities
24
842-230 Meaning of IMR widely held entity
25
Investment Manager Regime Schedule 7
Main amendments Part 1
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
75
842-235 Rules for determining total participation interests for the purposes of the
1
widely held test
2
842-240 Extended definition of IMR widely held entity--temporary circumstances
3
outside entity's control
4
Independent Australian fund managers
5
842-245 Meaning of independent Australian fund manager
6
842-250 Reductions in IMR concessions if independent Australian fund manager
7
entitled to substantial share of IMR entity's income
8
Object of this Subdivision
9
842-205 Object of this Subdivision
10
The object of this Subdivision is to encourage particular kinds of
11
investment made into or through Australia by some foreign
12
residents that have wide membership, or that use Australian fund
13
managers.
14
IMR concessions
15
842-210 IMR concessions apply only to foreign residents etc.
16
(1) This Subdivision applies only for the purposes of working out the
17
assessable income of an entity (the foreign entity) that:
18
(a) is a foreign resident; and
19
(b) is not a trust or partnership.
20
(2) Despite subsection (1), this Subdivision applies in relation to a
21
partnership or trust, to the extent necessary to work out an amount
22
included in the assessable income of the foreign entity.
23
Note 1:
This Subdivision applies, for example, in working out the net income
24
of a partnership or trust, to the extent necessary to work out the
25
assessable income, attributable to that partnership or trust, of a partner
26
or beneficiary who is a foreign resident.
27
Note 2:
This Subdivision could operate in relation to an entity (if it is a
28
partnership or trust) and/or one or more partnerships or trusts
29
interposed between the entity and the foreign resident.
30
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842-215 IMR concessions
1
Concessions relating to IMR financial arrangements
2
(1) The following consequences apply to an
*
IMR entity for an income
3
year in relation to an
*
IMR financial arrangement if the
4
requirements of subsection (3) or (5) are met in relation to the year:
5
(a) what would otherwise be the entity's assessable income for
6
the year is
*
non-assessable non-exempt income of the entity,
7
to the extent that it is attributable to a return or gain:
8
(i) from the arrangement (if the arrangement is a
9
*
derivative financial arrangement); or
10
(ii) from the entity disposing of, ceasing to own or
11
otherwise realising the arrangement;
12
(b) an amount is not deductible by the entity for the year, to the
13
extent that it is attributable to an outgoing or loss:
14
(i) from the arrangement (if the arrangement is a derivative
15
financial arrangement); or
16
(ii) from the entity disposing of, ceasing to own or
17
otherwise realising the arrangement;
18
(c) disregard a
*
capital gain or
*
capital loss that is from a
*
CGT
19
event that happens in the year in relation to the arrangement.
20
Further concessions relating to permanent establishments
21
(2) Without limiting subsection (1), the following further
22
consequences apply to an
*
IMR entity for an income year if the
23
requirements of subsection (5) are met in relation to the year:
24
(a) income that relates to or arises under the
*
IMR financial
25
arrangement, and that would otherwise be the entity's
26
assessable income for the year, is
*
non-assessable
27
non-exempt income of the entity, to the extent that the
28
income:
29
(i) if the entity is resident in a country that has entered into
30
an
*
international tax agreement with Australia
31
containing a
*
business profits article--is treated as
32
having a source in Australia because it is attributable to
33
a
*
permanent establishment of the entity in Australia; or
34
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(ii) if subparagraph (i) does not apply--is treated as having
1
a source in Australia because of subsection 815-230(1);
2
(b) an amount is not deductible by the entity for the year, to the
3
extent that it is attributable to gaining income that is
4
non-assessable non-exempt income of the entity because of
5
paragraph (a);
6
(c) disregard a
*
capital gain or
*
capital loss that is from a
*
CGT
7
event that relates to or arises under the IMR financial
8
arrangement, and that happens in the year in relation to a
9
*
CGT asset that:
10
(i) is covered by item 3 of the table in section 855-15 in
11
relation to the entity; or
12
(ii) is covered by item 4 of the table in section 855-15 in
13
relation to the fund because it is an option or right to
14
*
acquire a CGT asset covered by item 3 of that table in
15
relation to the entity.
16
Direct investment by IMR widely held entity
17
(3) The requirements of this subsection in relation to the year are that:
18
(a) during the whole of the year, the
*
IMR entity is an
*
IMR
19
widely held entity; and
20
(b) during the whole of the year, the interest of the entity in the
21
issuer of, or counterparty to, the
*
IMR financial arrangement
22
does not pass the
*
non-portfolio interest test (see
23
section 960-195); and
24
(c) none of the returns, gains or losses for the year from the
25
arrangement are attributable to:
26
(i) if the entity is a resident of a country that has entered
27
into an
*
international tax agreement with Australia
28
containing a
*
permanent establishment article--a
29
permanent establishment (within the meaning of the
30
relevant international tax agreement) of the entity in
31
Australia; or
32
(ii) otherwise--a permanent establishment of the entity in
33
Australia; and
34
(d) the IMR entity does not, during the year, carry on in
35
Australia a trading business (within the meaning of
36
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section 102M of the Income Tax Assessment Act 1936) that
1
relates (directly or indirectly) to the arrangement.
2
(4) For the purposes of paragraph (3)(a), disregard any part of the year
3
during which the entity did not exist.
4
Indirect investment through independent Australian fund manager
5
(5) The requirements of this subsection in relation to the year are that:
6
(a) the
*
IMR financial arrangement was made, on the
*
IMR
7
entity's behalf, by an entity that is an
*
independent Australian
8
fund manager for the IMR entity for the income year (see
9
section 842-245); and
10
(b) if the issuer of, or counterparty to, the arrangement is an
11
Australian resident, or a
*
resident trust for CGT purposes--
12
during the whole of the year, the interest of the entity in the
13
issuer or counterparty does not pass the
*
non-portfolio
14
interest test (see section 960-195); and
15
(c) the IMR entity does not, during the year, carry on in
16
Australia a trading business (within the meaning of
17
section 102M of the Income Tax Assessment Act 1936) that
18
relates (directly or indirectly) to the arrangement.
19
Withholding taxes etc.
20
(6) If what would otherwise be the
*
IMR entity's assessable income is
21
*
non-assessable non-exempt income of the entity because of
22
subsection (1) or (2), for the purposes of determining an entity's
23
liability to pay, in relation to that income:
24
(a)
*
withholding tax; or
25
(b) a payment from which an amount must be withheld under
26
Division 12 in Schedule 1 to the Taxation Administration Act
27
1953 (even if the amount is not withheld);
28
assume that any
*
independent Australian fund manager for the
29
IMR entity is not a
*
permanent establishment of the IMR entity.
30
842-220 Meaning of IMR entity
31
An entity is an IMR entity for an income year if the entity:
32
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(a) is not an Australian resident at all times during the income
1
year; and
2
(b) is not a
*
resident trust for CGT purposes for the income year.
3
842-225 Meaning of IMR financial arrangement
4
A
*
financial arrangement is an IMR financial arrangement unless
5
it is or relates to a
*
CGT asset that is:
6
(a)
*
taxable Australian real property (see section 855-20); or
7
(b) an
*
indirect Australian real property interest (see
8
section 855-25).
9
IMR widely held entities
10
842-230 Meaning of IMR widely held entity
11
(1) An IMR widely held entity is any of the following:
12
(a) a
*
foreign life insurance company;
13
(b) an entity that is covered by paragraph 12-402(3)(a), (b), (c),
14
(d), (f), (g) or (h) in Schedule 1 to the Taxation
15
Administration Act 1953;
16
(c) an entity of a kind specified in regulations made for the
17
purposes of this paragraph.
18
(2) Without limiting subsection (1) of this section, an entity is an IMR
19
widely held entity if:
20
(a) either:
21
(i) no other entity has a
*
total participation interest in the
22
entity of 20% or more (see section 842-235); or
23
(ii) there are not 5 or fewer other entities the sum of whose
24
total participation interests in the entity is 50% or more
25
(see section 842-235); or
26
(b) the entity has never satisfied the requirements of
27
paragraph (a), but investment in the entity is being actively
28
marketed with the intention that the entity satisfies the
29
requirements of that paragraph; or
30
(c) the reason for failing to satisfy the requirements of
31
paragraph (a) relates to the entity's activities and investments
32
being wound down.
33
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842-235 Rules for determining total participation interests for the
1
purposes of the widely held test
2
(1) For the purposes of subsection 842-230(2), apply the rules in this
3
section in determining an entity's
*
total participation interest in
4
another entity (the test entity).
5
(2) If an entity has, through one or more interposed entities, an
6
*
indirect participation interest in the test entity, treat each of those
7
interposed entities as having a
*
total participation interest in the
8
test entity of nil.
9
(3) If the test entity is a trust, do not treat an object of the trust as
10
having a
*
direct participation interest or
*
indirect participation
11
interest in the test entity.
12
(4) Treat the following (the affiliated entities):
13
(a) an entity;
14
(b) each of the entity's
*
affiliates;
15
as together being one entity, that has all of the interests and rights
16
of the affiliated entities.
17
Note:
Such interests and rights may give rise to a participation interest in the
18
test entity.
19
(5) If an entity (the nominee) has interests and rights in the capacity of
20
nominee of another entity:
21
(a) treat the nominee as not having those interests and rights; and
22
(b) instead, treat the other entity as having those interests and
23
rights (in addition to the other entity's interests and rights
24
apart from this subsection).
25
(6) If an entity that has a
*
direct participation interest or
*
indirect
26
participation interest in the test entity is an entity covered by:
27
(a) subsection 842-230(1); or
28
(b) paragraph 12-402(3)(e) in Schedule 1 to the Taxation
29
Administration Act 1953 (foreign collective investment
30
vehicles with a wide membership);
31
treat the entity's
*
total participation interest in the test entity as nil.
32
(7) The application of subsection (6) to an entity that has a
*
direct
33
participation interest or
*
indirect participation interest in the test
34
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Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
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entity does not affect the
*
total participation interest in the test
1
entity of any other entity that has a direct participation interest or
2
indirect participation interest in the test entity.
3
(8) In determining a
*
direct participation interest of one entity in
4
another entity, disregard paragraph 350(1)(b) of the Income Tax
5
Assessment Act 1936 (rights of shareholders to vote or participate
6
in certain decision-making).
7
(9) If the test entity is an
*
IMR entity and another entity is an
8
*
independent Australian fund manager for the test entity, in
9
determining the
*
total participation interest of the other entity, or
10
any entity
*
connected with the other entity, in the test entity,
11
disregard any direct or indirect entitlements (including contingent
12
entitlements) of the other entity, or connected entity, to
13
remuneration from the test entity:
14
(a) to the extent that the remuneration is subject to income tax in
15
relation to the income year for which the consequences (if
16
any) under subsection 842-215(1) or (2) are being determined
17
in relation to the test entity; and
18
(b) to the extent that the remuneration is subject to taxation in
19
relation to that income year under a
*
foreign law.
20
Example: Assume that 4 entities have interests in an IMR entity, as follows:
21
(a) a life insurance company has a 55% interest;
22
(b) an endowment fund has a 5% interest;
23
(c) company A has a 25% interest. It has 2 shareholders (who are not
24
affiliated): shareholder Y holds 60% of the shares and
25
shareholder Z holds 40%;
26
(d) company B has a 15% interest. It has several shareholders.
27
The IMR entity is an IMR widely held entity because:
28
(e) under subsection 842-235(6), the life insurance company has a
29
total participation interest of nil, as it is covered by
30
paragraph 12-402(3)(a) in Schedule 1 to the Taxation
31
Administration Act 1953; and
32
(f) the endowment fund has a total participation interest below the
33
20% threshold in subparagraph 842-230(2)(a)(i); and
34
(g) under subsection 842-235(2), company A's 25% interest is
35
divided between shareholder Y (15%) and shareholder Z (10%),
36
and company A is treated as having a total participation interest
37
in the IMR entity of nil; and
38
(h) company B's 15% interest is below the 20% threshold, so none
39
of its shareholders can have a total participation interest above
40
that threshold. (In these circumstances, it is not necessary to
41
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2015
No. , 2015
determine the total participation interests for each of those
1
shareholders.)
2
(Treating the life insurance company's 55% interest as a total
3
participation interest of nil ensures that no summing of the other total
4
participation interest can exceed the 50% threshold in
5
subparagraph 842-230(2)(a)(ii).)
6
842-240 Extended meaning of IMR widely held entity--temporary
7
circumstances outside entity's control
8
Without limiting section 842-230, an entity is an IMR widely held
9
entity if:
10
(a) apart from a particular circumstance, the entity would be an
11
*
IMR widely held entity because of section 842-230; and
12
(b) the circumstance is temporary; and
13
(c) the circumstance arose outside the entity's control; and
14
(d) it is fair and reasonable to treat the entity as an IMR widely
15
held entity, having regard to the following matters:
16
(i) the matters in paragraphs (b) and (c);
17
(ii) the nature of the circumstance;
18
(iii) the actions (if any) taken by the entity to address or
19
remove the circumstance, and the speed with which
20
such actions are taken;
21
(iv) any other relevant matter.
22
Independent Australian fund managers
23
842-245 Meaning of independent Australian fund manager
24
(1) An entity (the managing entity) is an independent Australian
25
fund manager for an
*
IMR entity for an income year if:
26
(a) the managing entity is an Australian resident; and
27
(b) the managing entity carries out investment management
28
activities for the IMR entity in the ordinary course of
29
*
business; and
30
(c) the managing entity's remuneration for carrying out those
31
activities is what the remuneration would be between parties
32
dealing at
*
arm's length; and
33
(d) one or more of the following applies:
34
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Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
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(i) the IMR entity is an
*
IMR widely held entity;
1
(ii) 70% or less of the managing entity's income, for the
2
income year, is income received from the IMR entity or
3
entities
*
connected with the IMR entity;
4
(iii) if the managing entity has been carrying out investment
5
management activities for 18 months or less--it takes
6
all reasonable steps to ensure that the proportion of its
7
income received from the IMR entity or entities
8
connected with the IMR entity, for the income year in
9
which that 18 month period ends, will be reduced to
10
70% or less.
11
(2) In applying paragraph (1)(c), have regard to the documents covered
12
by section 815-135.
13
842-250 Reductions in IMR concessions if independent Australian
14
fund manager entitled to substantial share of IMR
15
entity's income
16
(1) The application of section 842-215 to an
*
IMR entity for an income
17
year is modified, as provided by subsection (4) of this section, if:
18
(a) an entity is an
*
independent Australian fund manager for the
19
IMR entity; and
20
(b) that entity, or another entity
*
connected with the entity, has a
21
direct or indirect right to receive part of the profits of the
22
IMR entity for the year; and
23
(c) the sum of the amounts that the entity, and any other entity
24
connected with the entity, receive for the year in connection
25
with the entity being that independent Australian fund
26
manager exceeds 20% of the amount (the unadjusted
27
concessional amount) worked out under subsection (3); and
28
(d) the requirements of subsection 842-215(3) in relation to the
29
year are not met.
30
(2) However, this section does not apply if:
31
(a) the circumstances giving rise to the requirements of
32
paragraph (1)(c) being met arose outside the control of:
33
(i) the
*
IMR entity; or
34
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2015
No. , 2015
(ii) the
*
independent Australian fund manager or any entity
1
*
connected with the independent Australian fund
2
manager; and
3
(b) the independent Australian fund manager, or an entity
4
connected with the independent Australian fund manager, is
5
taking steps to address those circumstances.
6
(3) Work out the unadjusted concessional amount as follows:
7
Amount not
Amounts not
Disregarded
Disregarded
assessable
deductible
capital gains
capital losses
or exempt
8
where:
9
amount not assessable or exempt is the sum of:
10
(a) the amount (the 842-215(1)(a) amount) of the
*
IMR entity's
11
income for the income year that is, or would (apart from this
12
section) be,
*
non-assessable non-exempt income of the IMR
13
entity because of paragraph 842-215(1)(a); and
14
(b) the amount (the 842-215(2)(a) amount) of the IMR entity's
15
income for the income year that is, or would (apart from this
16
section) be, non-assessable non-exempt income of the IMR
17
entity because of paragraph 842-215(2)(a), and not because
18
of paragraph 842-215(1)(a).
19
amounts not deductible is the amount obtained by adding together:
20
(a) the sum of the amounts that are not deductible by the
*
IMR
21
entity for the income year because of
22
paragraph 842-215(1)(b); and
23
(b) the sum of the amounts that are not deductible by the IMR
24
entity for the income year because of
25
paragraph 842-215(2)(b), and not because of
26
paragraph 842-215(1)(b); and
27
(c) the sum of the amounts that would otherwise be deductible
28
by the IMR entity for the income year under section 8-1 if the
29
income in relation to which they were incurred were not
30
income that is
*
non-assessable non-exempt income of the
31
IMR entity because of paragraph 842-215(1)(a); and
32
(d) the sum of the amounts that would otherwise be deductible
33
by the IMR entity for the income year under section 8-1 if the
34
income in relation to which they were incurred were not
35
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Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
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income that is non-assessable non-exempt income of the IMR
1
entity because of paragraph 842-215(2)(a), and not because
2
of paragraph 842-215(1)(a).
3
disregarded capital gains is the amount obtained by adding
4
together:
5
(a) the sum (the 842-215(1)(c) amount) of the amounts of the
6
*
capital gains that:
7
(i) are from
*
CGT events that happen in the income year;
8
and
9
(ii) are, or would (apart from this section) be, disregarded in
10
relation to the
*
IMR entity, because of
11
paragraph 842-215(1)(c); and
12
(b) the sum (the 842-215(2)(c) amount) of the amounts of the
13
capital gains that:
14
(i) are from CGT events that happen in the income year;
15
and
16
(ii) are, or would (apart from this section) be, disregarded in
17
relation to the IMR entity because of
18
paragraph 842-215(2)(c), and not because of
19
paragraph 842-215(1)(c).
20
disregarded capital losses is the amount obtained by adding
21
together:
22
(a) the sum of the amounts of the
*
capital losses that:
23
(i) are from
*
CGT events that happen in the income year;
24
and
25
(ii) are disregarded in relation to the
*
IMR entity because of
26
paragraph 842-215(1)(c); and
27
(b) the sum of the amounts of the capital losses that:
28
(i) are from CGT events that happen in the income year;
29
and
30
(ii) are disregarded in relation to the IMR entity because of
31
paragraph 842-215(2)(c), and not because of
32
paragraph 842-215(1)(c).
33
(4) Apply the sum referred to in paragraph (1)(c) to reduce (including
34
reduce to zero) the following amounts:
35
(a) the 842-215(1)(a) amount;
36
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No. , 2015
(b) the 842-215(2)(a) amount;
1
(c) the 842-215(1)(c) amount;
2
(d) the 842-215(2)(c) amount.
3
Do not apply the sum to reduce an amount referred to in a
4
paragraph (other than paragraph (a)) unless the sum has been
5
applied to reduce to zero the amount referred to in each paragraph
6
preceding that paragraph.
7
(5) If the 842-215(1)(c) amount or the 842-215(2)(c) amount relates to
8
more than one
*
capital gain, a reduction of the amount under
9
subsection (4) is taken to reduce each of the capital gains by the
10
following amount:
11
The amount of the *capital gain
The amount of the reduction
under subsection (4)
The amount being reduced
under subsection (4)
12
(6) Without limiting the circumstances in which the requirements of
13
paragraph (1)(c) are not met, those requirements are taken not to be
14
met in relation to the
*
IMR entity for an income year if they are not
15
met in relation to the IMR entity for a period (a qualifying period)
16
of up to 5 consecutive income years including the income year (but
17
not including any future income years).
18
(7) In ascertaining for the purposes of subsection (6) whether the
19
requirements of paragraph (1)(c) are not met in relation to the
20
*
IMR entity for a qualifying period, assume that the qualifying
21
period is the income year referred to in subsection (1).
22
(8) For the purposes of paragraphs (1)(b) and (c) (including
23
paragraph (1)(c) as affected by subsections (6) and (7)), disregard
24
any direct or indirect entitlements (including contingent
25
entitlements) of the
*
independent Australian fund manager, or any
26
entity
*
connected with the independent Australian fund manager, to
27
remuneration from the
*
IMR entity:
28
(a) to the extent that the remuneration is subject to income tax in
29
relation to the income year referred to in subsection (1); and
30
(b) to the extent that the remuneration is subject to taxation in
31
relation to that income year under a
*
foreign law.
32
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No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
87
Part 2
--Other amendments
1
Income Tax Assessment Act 1936
2
2 Section 94T
3
Before "For", insert "(1)".
4
3 At the end of section 94T
5
Add:
6
(2) In determining whether the partnership carries on business in
7
Australia for the purposes of subparagraph (1)(f)(i), if, for the year
8
of income, the partnership is an IMR entity (within the meaning of
9
the Income Tax Assessment Act 1997, but disregarding
10
paragraph 842-220(a) of that Act), disregard business that:
11
(a) is carried on by the partnership (either by itself directly or by
12
another entity on its behalf); and
13
(b) solely relates to IMR financial arrangements (within the
14
meaning of that Act).
15
4 Subsection 128B(3F) (definition of permanent
16
establishment)
17
Repeal the definition, substitute:
18
permanent establishment of a person:
19
(a) has the same meaning as in a double tax agreement (as
20
defined in Part X) that relates to a foreign country and affects
21
the person; or
22
(b) has the meaning given by subsection 6(1), if there is no such
23
agreement.
24
Those meanings are not affected by the operation of
25
subparagraph 842-215(2)(a)(i) of the Income Tax Assessment Act
26
1997.
27
Schedule 7 Investment Manager Regime
Part 2 Other amendments
88
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
Income Tax Assessment Act 1997
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5 Section 11-55
(after table item headed "GST")
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Insert:
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investment manager regime
IMR concessions ................................................................. 842-215
6 Subsection 995-1(1)
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Repeal the following definitions:
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(a) definition of IMR capital gain;
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(b) definition of IMR capital loss;
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(c) definition of IMR deduction.
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7 Subsection 995-1(1)
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Insert:
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IMR entity has the meaning given by section 842-220.
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IMR financial arrangement has the meaning given by
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section 842-225.
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8 Subsection 995-1(1)
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Repeal the following definitions:
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(a) definition of IMR foreign fund;
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(b) definition of IMR income.
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9 Subsection 995-1(1)
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Insert:
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IMR widely held entity has the meaning given by sections 842-230
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and 842-240.
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independent Australian fund manager has the meaning given by
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section 842-245.
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10 Subsection 995-1(1)
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Repeal the following definitions:
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(a) definition of non-IMR Division 6E net income;
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Investment Manager Regime Schedule 7
Other amendments Part 2
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
89
(b) definition of non-IMR net capital gain;
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(c) definition of non-IMR net income;
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(d) definition of non-IMR partnership loss;
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(e) definition of non-IMR partnership net income;
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(f) definition of pre-2012 IMR capital gain;
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(g) definition of pre-2012 IMR income.
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11 Application of amendments
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The amendments made by this Part (other than item 12) apply in
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relation to the income years in relation to which, under section 842-207
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of the Income Tax (Transitional Provisions) Act 1997 as amended by
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this Act, the new Subdivision 842-I (within the meaning of that section)
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applies.
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Income Tax (Transitional Provisions) Act 1997
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12 Before section 842-210
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Insert:
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842-207 Application of replacement version of Subdivision 842-I
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(1) The new Subdivision 842-I applies, or is taken to have applied, in
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relation to:
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(a) the 2015-16 income year and later income years; and
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(b) if an entity chooses to apply the new Subdivision 842-I in
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relation to the 2011-12, 2012-13, 2013-14 and 2014-15
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income years--those income years.
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(2) In this section:
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new Subdivision 842-I means Subdivision 842-I (Investment
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Manager Regime) of the Income Tax Assessment Act 1997, as
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substituted by Schedule 7 to the Tax and Superannuation Laws
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Amendment (2015 Measures No. 1) Act 2015.
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Note:
The new Subdivision 842-I replaced a previous version of that
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Subdivision, which applied in relation to assessments for the 2010-11
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income year and later income years (see item 17 of Schedule 1 to the
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Tax Laws Amendment (Investment Manager Regime) Act 2012).
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Schedule 7 Investment Manager Regime
Part 2 Other amendments
90
Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill
2015
No. , 2015
842-209 Modified meaning of IMR foreign fund for the purposes of
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earlier income years
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(1) This section applies for the purposes of:
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(a) this Subdivision (apart from section 842-207); and
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(b) Subdivision 842-I (Investment Manager Regime) of the
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Income Tax Assessment Act 1997, as substituted by
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Schedule 7 to the Tax and Superannuation Laws Amendment
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(2015 Measures No. 1) Act 2015 (the new IMR Schedule).
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(2) Treat an entity as an IMR foreign fund if, and only if:
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(a) it is an IMR entity (within the meaning given by
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section 842-220 of the Income Tax Assessment Act 1997, as
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inserted by the new IMR Schedule); and
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(b) subject to subsection (3) of this section, it is an IMR widely
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held entity (within the meaning given by sections 842-230
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and 842-240 of the Income Tax Assessment Act 1997, as
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inserted by the new IMR Schedule); and
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(c) the entity chooses to be treated as an IMR foreign fund for
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those purposes.
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(3) Treat subsection 842-230(1) of the Income Tax Assessment Act
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1997, as inserted by the new IMR Schedule, as not applying to the
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entity.
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