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TAX AND SUPERANNUATION LAWS AMENDMENT (2015 MEASURES NO. 1) BILL 2015

 

 

 

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 

Short title ........................................................................................... 1

 

Commencement ................................................................................. 1

 

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 

home saver accounts, taxation, superannuation and 

charities, and to amend the Product Stewardship 

(Oil) Act 2000, and for related purposes 

The Parliament of Australia enacts: 

1  Short title 

 

  This Act may be cited as the Tax and Superannuation Laws 

Amendment (2015 Measures No. 1) Act 2015

2  Commencement 

 

(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 

according to its terms. 

 

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 

enacted. It will not be amended to deal with any later amendments of 

this Act. 

 

(2)  Any information in column 3 of the table is not part of this Act. 

Information may be inserted in this column, or information in it 

may be edited, in any published version of this Act. 

   

   

 

 

4 

Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill 

2015 

No.      , 2015 

 

3  Schedules 

 

  Legislation that is specified in a Schedule to this Act is amended or 

repealed as set out in the applicable items in the Schedule 

concerned, and any other item in a Schedule to this Act has effect 

according to its terms. 

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 

Part 1

--Repeals of Acts 

First Home Saver Account Providers Supervisory Levy 

Imposition Act 2008 

1  The whole of the Act 

Repeal the Act. 

First Home Saver Accounts Act 2008 

2  The whole of the Act 

Repeal the Act. 

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 

Division 1

--Main amendments 

Anti-Money Laundering and Counter-Terrorism Financing 

Act 2006 

4  Section 5 (definition of contribution

Repeal the definition, substitute: 

contribution, in relation to an RSA, has the same meaning as in the 

Retirement Savings Accounts Act 1997

5  Section 5 (definition of FHSA

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) 

Omit ", RSA is short for retirement savings account and FHSA is short 

for first home saver account", substitute "and RSA is short for 

retirement savings account". 

12  Subsection 56(1) (subparagraph (e)(ii) of the definition of 

protected document

Omit "Taxation; or", substitute "Taxation.". 

13  Subsection 56(1) (paragraph (f) of the definition of 

protected document

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) 

Omit ", the Financial Sector (Collection of Data) Act 2001 or the First 

Home Saver Accounts Act 2008", substitute "or the Financial Sector 

(Collection of Data) Act 2001". 

20  Subparagraph 11CA(2)(aa)(ii) 

Omit "or". 

21  Subparagraph 11CA(2)(aa)(iii) 

Repeal the subparagraph. 

22  Subsection 18A(5) 

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 

deposit product

Repeal the paragraph. 

30  Section 761A (definition of FHSA product

Repeal the definition. 

31  Subsection 761E(3) (table item 2A) 

Repeal the item. 

32  Paragraph 761E(3A)(ba) 

Repeal the paragraph. 

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 

1998 

39  Section 7 (paragraph (f) of the definition of leviable body

Omit "entity;", substitute "entity.". 

40  Section 7 (paragraph (g) of the definition of leviable body

Repeal the paragraph. 

41  Section 7 (definition of leviable FHSA entity

Repeal the definition. 

42  Section 7 (paragraph (f) of the definition of levy

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 

47  Subsection 6(1) (paragraph (h) of the definition of 

assessment

Omit "payable); or", substitute "payable).". 

48  Subsection 6(1) (paragraph (i) of the definition of 

assessment

Repeal the paragraph. 

49  Subsection 6(1) (definition of FHSA

Repeal the definition. 

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) 

Repeal the paragraph. 

58  Paragraph 124ZM(6)(a) 

Insert: 

complying superannuation class of taxable income is the life 

assurance company's complying superannuation class of taxable 

income, within the meaning of the Income Tax Assessment Act 

1997, for the year of income in which the distribution is made. 

59  Paragraph 124ZM(6)(a) (definition of complying 

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 

accounts") 

Repeal the item. 

67  Section 10-

5 (table item headed "reimbursements") 

Omit "first home saver accounts,". 

68  Section 11-

55 (table item headed "first home saver 

accounts") 

Repeal the item. 

69  Section 15-80 

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) 

Repeal the subsection, substitute: 

 

(3)  Despite item 1 or 2 of the table in subsection (1), no credit arises 

on that part of the payment that is attributable to a payment of 

income tax in relation to an 

*

RSA component. 

79  Paragraph 205-30(2)(a) 

Repeal the paragraph, substitute: 

 

(a)  a payment of income tax in relation to an 

*

RSA component; 

80  Paragraphs 207-15(2)(a) and 207-35(1)(c) 

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) 

Omit "and the 

*

FHSA component are", substitute "is". 

88  Section 295-171 

Repeal the section. 

89  Section 295-495 (table item 4A) 

Repeal the item. 

90  Paragraph 295-555(1)(b) 

Repeal the paragraph. 

91  Subsection 295-555(1) (note) 

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) 

Omit ", 

*

FHSA". 

100  Paragraph 320-85(2)(ba) 

Repeal the paragraph. 

101  Subsection 320-107(3) 

Insert: 

complying superannuation class rate is the rate of tax imposed on 

the 

*

complying superannuation class of the company's taxable 

income for the income year. 

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 

subsection 320-170(6). 

complying superannuation asset pool has the meaning given by 

subsection 320-170(6). 

complying superannuation class

 

(a)  for a taxable income of a 

*

life insurance company--has the 

meaning given by section 320-137; or 

 

(b)  for a 

*

tax loss of a 

*

life insurance company--has the meaning 

given by section 320-141. 

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 

*

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

Repeal the definition, substitute: 

standard component has the meaning given by section 295-555. 

Income Tax Rates Act 1986 

109  Subsection 3(1) 

Insert: 

complying superannuation class of the taxable income of a life 

insurance company has the same meaning as in the Income Tax 

Assessment Act 1997

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 

118  Subparagraph 14(2)(a)(ii) 

Omit "or" (last occurring), substitute "and". 

119  Subparagraph 14(2)(a)(iii) 

Repeal the subparagraph. 

120  Subparagraph 14(4)(b)(ii) 

Omit "be; or", substitute "be.". 

121  Subparagraph 14(4)(b)(iii) 

Repeal the subparagraph. 

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 

129  Paragraph 8(8)(ba) 

Repeal the paragraph. 

130  Subsection 9(1) (definition of financial investment

Omit "an investment in an FHSA (within the meaning of the First 

Home Saver Accounts Act 2008) or". 

131  Subsection 9(1) (paragraph (b) of the definition of 

investment

Omit "(9A); or", substitute "(9A).". 

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 

investment

Repeal the paragraph. 

140  Subsection 23(1) (paragraph (b) of the definition of 

return

Omit "9(1); or", substitute "9(1).". 

141  Subsection 23(1) (paragraph (c) of the definition of 

return

Repeal the paragraph. 

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) 

Repeal the paragraph. 

149  Subsection 108A(3) 

Omit all the words after paragraph (b). 

150  Subsection 108A(3) (note) 

Repeal the note. 

Taxation Administration Act 1953 

151  Subsection 8AAB(4) (table items 4 and 16) 

Repeal the items. 

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 

Omit "superannuation/FHSA", substitute "superannuation". 

160  Paragraph 45-330(2)(c) in Schedule 1 

Omit "year; or", substitute "year.". 

161  Paragraph 45-330(2)(d) in Schedule 1 

Repeal the paragraph. 

162  Subsection 45-330(3) in Schedule 1 (steps 4, 5 and 6 of 

the method statement) 

Omit "superannuation/FHSA" (wherever occurring), substitute 

"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 

169  Subsection 288-70(2) in Schedule 1 (heading) 

Repeal the heading, substitute: 

Complying superannuation asset pool--transfer following 

valuation 

170  Paragraph 288-70(2)(a) in Schedule 1 

Omit "superannuation/FHSA", substitute "superannuation". 

171  Subsection 355-65(3) in Schedule 1 (table item 6) 

Repeal the item. 

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

Omit "an investment in an FHSA (within the meaning of the First 

Home Saver Accounts Act 2008) or". 

177  Subsection 5J(1) (paragraph (b) of the definition of 

investment

Omit "(6A); or", substitute "(6A).". 

178  Subsection 5J(1) (paragraph (c) of the definition of 

investment

Repeal the paragraph. 

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) 

Omit "(4)); or", substitute "(4)).". 

187  Paragraph 52ZZB(1)(d) 

Repeal the paragraph. 

Division 2

--Repeals of Tax Code definitions 

Income Tax Assessment Act 1997 

188  Subsection 995-1(1) 

Repeal the following definitions: 

 

(a)  definition of complying superannuation/FHSA asset

 

(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 

Income Tax Assessment Act 1997 

189  The whole of the Act 

Omit every occurrence of "superannuation/FHSA", substitute 

"superannuation". 

190  The whole of the Act 

Omit every occurrence of "superannuation/FHSA", substitute 

"superannuation". 

191  The whole of the Act 

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 

(Spring 2014) Act 2015 

Omnibus Repeal Day (Spring 2014) Act 2015 

193  Division 2 of Part 1 of Schedule 8 (heading specifying 

First Home Saver Accounts Act 2008

Repeal the heading. 

194  Items 4 and 5 of Schedule 8 

Repeal the items. 

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 

Division 1

--Definitions 

195  Definitions 

In this Part: 

FHSA Act means the First Home Saver Accounts Act 2008, as in force 

just before the commencement of this item. 

Division 2

--General provisions 

196  No new FHSAs 

(1) 

An account, life policy or beneficial interest opened or issued after 7:30 

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 

things, in relation to past matters 

Even though an Act is repealed or amended by this Schedule, the repeal 

or amendment is disregarded for the purpose of doing any of the 

following under any Act or legislative instrument: 

 

(a)  making or amending an assessment (including under a 

provision that is itself repealed or amended); 

 

(b)  exercising any right or power, performing any obligation or 

duty or doing any other thing (including under a provision 

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 

apply in the particular case until the end of the period. 

201  Repeals disregarded for the purposes of dependent 

provisions 

(1) 

If the operation of a provision (the subject provision) of any Act or 

legislative instrument made under any Act depends to any extent on an 

Act, or a provision of an Act, that is repealed by this Schedule, the 

repeal is disregarded so far as it affects the operation of the subject 

provision. 

(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 

Government FHSA contributions for the 2013-14 financial year or an 

earlier financial year. 

Example: Subsection 345-50(3) of the Income Tax Assessment Act 1997 (which makes 

Government FHSA contributions not assessable income and not exempt income) applies 

to a Government FHSA contribution for the 2013-14 year, even if it is paid after the 

repeal of that subsection by this Schedule. 

(3) 

Despite anything in the FHSA Act or this Schedule, the Commissioner 

must not pay a Government FHSA contribution after 30 June 2017, 

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 

Part 1

--Main amendments 

Income Tax Assessment Act 1936 

1  Subparagraphs 23AB(7)(a)(ii) and (iii) 

Repeal the subparagraphs, substitute: 

 

(ii)  the amount worked out using subsection (7A); or 

2  Subsection 23AB(7) (notes 1 and 2) 

Repeal the notes. 

3  Subsection 23AB(7A) 

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 

 

(ii)  an amount equal to 50% of the relevant rebate amount 

in relation to the taxpayer in relation to the year of 

income; or 

 

(c)  if the taxpayer is a resident of Zone B in the year of income 

but has not resided or actually been in Zone A or the special 

area in Zone B during any part of the year of income--an 

amount equal to the sum of: 

 

(i)  $57; and 

 

(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) 

Omit "amount; and", substitute "amount." 

11  Paragraph 79B(4)(c) 

Repeal the paragraph. 

12  Subparagraph 79B(4A)(b)(ii) 

Omit "amount; and", substitute "amount;". 

13  Subparagraph 79B(4A)(b)(iii) 

Repeal the subparagraph. 

14  Subsection 79B(6) (definition of concessional rebate 

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 

Table of Subdivisions 

961-A  Dependant (non-student child under 21 or student) notional 

tax offset 

961-B  Dependant (sole parent of a non-student child under 21 or 

student) notional tax offset 

Subdivision 961-A--Dependant (non-student child under 21 or 

student) notional tax offset 

Guide to Subdivision 961-A 

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 

 

(b)  you are an Australian resident; and 

 

(c)  during the year you contribute to the maintenance of another 

individual (the dependant) who: 

 

(i)  is less than 25 years of age, and is a full-time student at 

a school, college or university; or 

 

(ii)  if subparagraph (i) does not apply--is less than 21 years 

of age; and 

 

(d)  during the year: 

 

(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 

 

(b)  in relation to each of the others--$282. 

961-15  Reduced amounts of the dependant (non-student child under 

21 or student) notional tax offset 

 

(1)  The amount of the notional tax offset under section 961-10 is 

reduced by the amount in accordance with subsection (2) of this 

section if one or more of the following applies: 

 

(a)  paragraph 961-5(1)(c) applies during part only of the year; 

 

(b)  paragraph 961-5(1)(d) applies during part only of the year; 

 

(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 

child under 21 or student) notional tax offset 

Guide to Subdivision 961-B 

961-50  What this Subdivision is about 

This Subdivision provides for a notional tax offset for an income 

year if you are the sole contributor to the maintenance of a 

non-student child or a student dependant. The notional tax offset 

can only be taken into account in working out certain tax offsets 

under the Income Tax Assessment Act 1936

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 

provided for by sections 79A and 79B of the Income Tax 

Assessment Act 1936

Note: 

Section 79A of that Act provides a tax offset for residents of isolated 

areas; section 79B provides a tax offset for members of the Defence 

Force who are serving overseas. 

961-60  Amount of the dependant (sole parent of a non-student child 

under 21 or student) notional tax offset 

 

  The amount of the notional tax offset to which you are entitled 

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 

Income Tax Assessment Act 1936 

18  Subsection 159HA(1) 

Omit "Sections 159J, 159L and 159Q apply", substitute "Section 159Q 

applies". 

19  Subsection 159HA(6A) 

Repeal the subsection. 

20  Subsection 159HA(7) (table items 1, 2 and 3) 

Repeal the items. 

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") 

Omit: 

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: 

invalid relative, invalid spouse or carer in receipt of 

carer benefit ...................................................................  

Subdivision 61-A 

26  Section 13-

1 (table items headed "housekeeper", 

"parent/parent-in-law" and "spouse") 

Repeal the items. 

27  Subparagraph 61-10(1)(c)(ii) 

Omit "Australia; and", substitute "Australia.". 

28  Paragraphs 61-10(1)(d) and (e) 

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) 

Repeal the paragraphs, substitute: 

 

(b)  is entitled to a tax offset under Subdivision 61-A of the 

Income Tax Assessment Act 1997 for the year of income in 

respect of the person's child (within the meaning of that Act); 

or 

 

(c)  is entitled to a notional tax offset under Subdivision 961-B of 

the Income Tax Assessment Act 1997 for the year of income; 

32  Subsection 8(5) (definition of family income threshold

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 

Income Tax Assessment Act 1997 

34  Subsection 61-15(3) 

Repeal the subsection. 

35  At the end of section 61-25 

Add: 

Note: 

Clause 31 of Schedule 1 to the A New Tax System (Family Assistance) 

Act 1999 reduces the standard rate for the family tax benefit to take 

account of shared care percentages. 

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 

38  Application of amendments

--Parts 1 and 2 

The amendments made by Parts 1 and 2 of this Schedule apply in 

relation to assessments for the 2014-15 income year and later income 

years. 

39  Application of amendments

--Part 3 

The amendments made by Part 3 of this Schedule apply in relation to 

assessments for the 2012-13 income year and later income years. 

Schedule 3  Offshore banking units 

Part 1  Trading in subsidiaries 

 

 

46 

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2015 

No.      , 2015 

 

Schedule 3

--Offshore banking units 

Part 1

--Trading in subsidiaries 

Income Tax Assessment Act 1936 

1  Paragraph 121D(1)(c) 

After "subsection (4)", insert "(subject to subsection (4A))". 

2  After subsection 121D(4) 

Insert: 

 

(4A)  However, paragraph (1)(c) does not apply to a trading activity done 

by an OBU if: 

 

(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 

Income Tax Assessment Act 1936 

3  Paragraph 121B(2)(a) 

Repeal the paragraph, substitute: 

 

(a)  OB activity (sections 121D, 121EA and 121EAA) together 

with the related definition of offshore person (section 121E); 

and 

4  Section 121C 

Insert: 

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 

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No.      , 2015 

 

Note 2: 

Subsection (2) of this section and subsection 262A(1A) do not apply if 

the OBU does not use money in the thing, but the OBU must keep 

documents containing particulars of the choice: see 

paragraph 262A(2)(b). 

Note 3: 

Subsection (2) does not prevent the OBU from correcting a mistake in 

its accounting records. 

 

(3)  The OBU's non-OB accounting records are the OBU's accounting 

records, other than the accounting records maintained in respect of 

money used in the OBU's OB activities under 

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 

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(6)  In applying subsection (5), have regard to the matters mentioned in 

paragraphs (5)(a) to (f) both: 

 

(a)  in relation to the transaction and other things separately; and 

 

(b)  in relation to the transaction and other things in combination 

with each other. 

7  Subsection 121EB(1) 

Omit "121EA", substitute "121EAA". 

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 

Income Tax Assessment Act 1936 

8  Subsection 6(1) 

Insert: 

statutory income has the meaning given by the Income Tax 

Assessment Act 1997

9  Paragraph 121B(2)(b) 

Repeal the paragraph, substitute: 

 

(b)  special income and allowable deduction definitions relating 

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 

OB income 

 

(1)  Subject to subsections (2) to (5), the OB income of an OBU of a 

year of income is so much of the OBU's ordinary income and 

statutory income of the year of income as is: 

 

(a)  derived from OB activities of the OBU or the part of the 

OBU to which paragraph 121EB(1)(c) applies; or 

 

(b)  included in the statutory income because of such activities. 

 

(2)  Subsection (1) does not apply to amounts included under Part 3-1 

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 

 

(2)  The assessable OB income of an OBU is so much of the OBU's 

OB income of the year of income as is assessable income. 

15  Subsection 121EF(4) 

Repeal the subsection, substitute: 

General OB deduction 

 

(4)  A deduction that: 

 

(a)  is none of the following: 

 

(i)  a loss deduction; 

 

(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 

Income Tax Assessment Act 1936 

17  Section 121C (definition of eligible contract

Repeal the definition, substitute: 

eligible contract means: 

 

(a)  any of the following: 

 

(i)  a futures contract; 

 

(ii)  a forward contract; 

 

(iii)  an options contract; 

 

(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 

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2015 

No.      , 2015 

 

 

(d)  an OB eligible contract activity (see section 121DB); or 

20  Paragraph 121D(1)(f) 

Repeal the paragraph, substitute: 

 

(f)  an OB advisory activity (see section 121DC); or 

21  After paragraph 121D(1)(g) 

Insert: 

 

(ga)  an OB leasing activity (see section 121DD); or 

22  Paragraph 121D(2)(b) 

After "lending money", insert ", or making commitments to lend 

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) 

Insert: 

 

(aa)  trading with any person in non-deliverable forward foreign 

currency contracts; or 

27  At the end of subsection 121D(4) 

Add: 

 

; or (i)  trading with an offshore person in commodities, or in options 

or rights in respect of commodities, if: 

 

(i)  the commodities, options or rights are not mentioned in 

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 

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No.      , 2015 

 

121DC  Meaning of OB advisory activity 

 

(1)  An OB advisory activity is giving investment or other financial 

advice to an offshore person, including advice about disposing of 

an investment. 

 

(2)  Giving advice about the making of a particular investment is not an 

OB advisory activity unless the investment is of a kind mentioned 

in subsection 121D(6) (Investment activity). 

 

(3)  Subsection (2) does not exclude giving advice about a particular 

investment of a different kind if doing so is incidental to advising 

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 

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2015 

57 

 

Part 5

--Internal financial dealings 

Income Tax Assessment Act 1936 

33  At the end of section 121EB 

Add: 

Arm's length pricing 

 

(4)  For the purposes of this Division, treat an amount that, because of 

subsections (1) to (3): 

 

(a)  is included in the OBU's OB income; or 

 

(b)  is an allowable OB deduction of the OBU; 

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 

 

 

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No.      , 2015 

 

Part 6

--Application of amendments 

34  Application of amendments 

(1) 

The amendments made by this Schedule (other than Part 2) apply in 

relation to years of income starting on or after 1 July 2015. 

(2) 

The amendments made by Part 2 apply in relation to a thing an OBU 

does on or after 1 July 2015. 

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 

Infrastructure Hub Ltd 

Part 1

--Amendments commencing day after Royal 

Assent 

Income Tax Assessment Act 1997 

1  Section 11-

5 (table item headed "primary or secondary 

resources, and tourism") 

Before: 

horticultural society etc.  .....................................................  50-40 

insert: 

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 

 

 

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No.      , 2015 

 

Part 2

--Sunsetting on 1 July 2021 

Income Tax Assessment Act 1997 

3  Section 11-

5 (table item headed "primary or secondary 

resources, and tourism") 

Omit: 

Global Infrastructure Hub Ltd  ...........................................  50-40 

4  Section 50-40 (table item 8.4) 

Repeal the item. 

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 

extensions 

   

Income Tax Assessment Act 1997 

1  Subsection 30-50(2) (table items 5.2.32 and 5.2.33) 

Omit "1 January 2015", substitute "1 January 2018". 

Tax and Superannuation Laws Amendment (2013 Measures 

No. 2) Act 2013 

2  Subsection 2(1) (table item 8) 

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 

 

 

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No.      , 2015 

 

Schedule 6

--Miscellaneous amendments 

Part 1

--General amendments 

A New Tax System (Goods and Services Tax) Act 1999 

1  Section 23-1 (diagram) 

Repeal the diagram, substitute: 

 

 

2  Paragraph 134-10(1)(e) 

Omit "from you", substitute "you make". 

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 

4  Subsection 136(1) (subparagraph (b)(iii) of the definition of 

in-house residual fringe benefit

Omit "property", substitute "benefits". 

Fuel Tax Act 2006 

5  Subsection 3-5(3) (table) 

Repeal the table, substitute: 

Common definitions that are not asterisked 

Item 

This term: 

Commissioner 

entity 

fuel tax 

fuel tax credit 

indirect tax zone 

taxable fuel 

you 

6  Subsections 41-5(1) and 41-10(1), (2) and (3) 

Omit "Australia", substitute "the indirect tax zone". 

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 

*

GST Act. 

11  Section 110-5 (paragraph (d) of the definition of taxable 

fuel

Omit "Australia", substitute "the indirect tax zone". 

12  Application 

The amendments of the Fuel Tax Act 2006 made by this Part apply to 

taxable fuel acquired, manufactured or imported on or after 1 July 2015. 

Income Tax Assessment Act 1997 

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) 

Omit "

*

carry on", substitute "carry on". 

17  Paragraph 30-242(3A)(b) 

Omit "

*

carrying on", substitute "carrying on". 

18  Paragraph 35-5(1)(a) 

Omit "

*

carried on", substitute "carried on". 

19  Subsection 35-5(2) 

Omit "

*

carrying on", substitute "carrying on". 

20  Subsection 35-10(2A) 

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 

The amendment of section 83A-130 of the Income Tax Assessment Act 

1997 made by this Part applies in relation to ESS interests acquired on 

or after 1 July 2009. 

29  Section 104-5 (cell at table item dealing with CGT event 

K1, column headed "Event number and description") 

Omit "

*

Kyoto unit or an 

*

Australian carbon credit unit", substitute 

"Kyoto unit or an Australian carbon credit unit". 

30  Section 112-97 (table item 

18A, column headed "In this 

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) 

Insert: 

taxable dealing, in relation to 

*

wine, has the meaning given by 

section 33-1 of the 

*

Wine Tax Act. 

wine has the meaning given by Subdivision 31-A of the 

*

Wine Tax 

Act. 

38  Subsection 995-1(1) (definition of wine taxable dealing

Repeal the definition. 

Income Tax Rates Act 1986 

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)  Without limiting its effect apart from this section, this Act also has 

effect as provided by this section. 

 

(2)  This Act also has the effect it would have if its operation in relation 

to product stewardship (oil) benefits were expressly confined to an 

operation limited to product stewardship (oil) benefits in relation to 

external affairs. 

 

(3)  This Act also has the effect it would have if its operation in relation 

to product stewardship (oil) benefits were expressly confined to an 

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) 

Omit "; and; or", substitute "; or". 

50  Subparagraph 20-5(3)(d)(iii) 

Omit "arrangements.", substitute "arrangements; and". 

Taxation Administration Act 1953 

51  Subsection 12-390(4) in Schedule 1 (note) 

After "If the recipient", insert "is". 

52  Section 105-1 in Schedule 1 

Omit "your address for service of documents and". 

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 

The amendments of section 426-55 in Schedule 1 to the Taxation 

Administration Act 1953 made by this Part apply to a decision, on or 

after the commencement of this Part, to revoke an endorsement 

(regardless of when the endorsement took effect). 

Taxation (Deficit Reduction) Act (No. 3) 1993 

60  Subsection 2(3) 

Repeal the subsection. 

61  Division 4 of Part 2 

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 

Public Governance, Performance and 

Accountability Act 2013 

Australian Charities and Not-for-profits Commission Act 

2012 

65  Section 110-15 (note) 

Repeal the note, substitute: 

Note: 

The expenditure of relevant money (within the meaning of the Public 

Governance, Performance and Accountability Act 2013) must comply 

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 

of that section; or 

68  Subsection 125-5(1) 

Omit "(the Account)". 

69  Subsection 125-5(2) 

Repeal the subsection, substitute: 

 

(2)  The account is a special account for the purposes of the Public 

Governance, Performance and Accountability Act 2013

70  Section 125-10 (heading) 

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) 

Repeal the note, substitute: 

Note: 

The expenditure of relevant money (within the meaning of the Public 

Governance, Performance and Accountability Act 2013) must comply 

with the requirements in that Act. 

77  Section 140-20 

Repeal the section, substitute: 

140-20  Disclosure of interests 

 

(1)  A disclosure by a member of the Advisory Board under

 

section 29 

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 

Part 1

--Main amendments 

Income Tax Assessment Act 1997 

1  Subdivision 842-I 

Repeal the Subdivision, substitute: 

Subdivision 842-I--Investment manager regime 

Guide to Subdivision 842-I 

842-200  What this Subdivision is about 

This Subdivision sets out rules about the taxation of some foreign 

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 

widely held test 

842-240  Extended definition of IMR widely held entity--temporary circumstances 

outside entity's control 

Independent Australian fund managers 

842-245  Meaning of independent Australian fund manager 

842-250  Reductions in IMR concessions if independent Australian fund manager 

entitled to substantial share of IMR entity's income 

Object of this Subdivision 

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 

Schedule 7  Investment Manager Regime 

Part 1  Main amendments 

 

 

76 

Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill 

2015 

No.      , 2015 

 

842-215  IMR concessions 

Concessions relating to IMR financial arrangements 

 

(1)  The following consequences apply to an 

*

IMR entity for an income 

year in relation to an 

*

IMR financial arrangement if the 

requirements of subsection (3) or (5) are met in relation to the year: 

 

(a)  what would otherwise be the entity's assessable income for 

the year is 

*

non-assessable non-exempt income of the entity, 

to the extent that it is attributable to a return or gain: 

 

(i)  from the arrangement (if the arrangement is a 

*

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 

*

permanent establishment of the entity in Australia; or 

34 

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(ii)  if subparagraph (i) does not apply--is treated as having 

a source in Australia because of subsection 815-230(1); 

 

(b)  an amount is not deductible by the entity for the year, to the 

extent that it is attributable to gaining income that is 

non-assessable non-exempt income of the entity because of 

paragraph (a); 

 

(c)  disregard a 

*

capital gain or 

*

capital loss that is from a 

*

CGT 

event that relates to or arises under the IMR financial 

arrangement, and that happens in the year in relation to a 

*

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 

relates (directly or indirectly) to the arrangement. 

 

(4)  For the purposes of paragraph (3)(a), disregard any part of the year 

during which the entity did not exist. 

Indirect investment through independent Australian fund manager 

 

(5)  The requirements of this subsection in relation to the year are that: 

 

(a)  the 

*

IMR financial arrangement was made, on the 

*

IMR 

entity's behalf, by an entity that is an 

*

independent Australian 

fund manager for the IMR entity for the income year (see 

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 

year; and 

 

(b)  is not a 

*

resident trust for CGT purposes for the income year. 

842-225  Meaning of IMR financial arrangement 

 

  A 

*

financial arrangement is an IMR financial arrangement unless 

it is or relates to a 

*

CGT asset that is: 

 

(a) 

*

taxable Australian real property (see section 855-20); or 

 

(b)  an 

*

indirect Australian real property interest (see 

section 855-25). 

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 

purposes of the widely held test 

 

(1)  For the purposes of subsection 842-230(2), apply the rules in this 

section in determining an entity's 

*

total participation interest in 

another entity (the test entity). 

 

(2)  If an entity has, through one or more interposed entities, an 

*

indirect participation interest in the test entity, treat each of those 

interposed entities as having a 

*

total participation interest in the 

test entity of nil. 

 

(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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entity does not affect the 

*

total participation interest in the test 

entity of any other entity that has a direct participation interest or 

indirect participation interest in the test entity. 

 

(8)  In determining a 

*

direct participation interest of one entity in 

another entity, disregard paragraph 350(1)(b) of the Income Tax 

Assessment Act 1936 (rights of shareholders to vote or participate 

in certain decision-making). 

 

(9)  If the test entity is an 

*

IMR entity and another entity is an 

*

independent Australian fund manager for the test entity, in 

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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determine the total participation interests for each of those 

shareholders.) 

 

(Treating the life insurance company's 55% interest as a total 

participation interest of nil ensures that no summing of the other total 

participation interest can exceed the 50% threshold in 

subparagraph 842-230(2)(a)(ii).) 

842-240  Extended meaning of IMR widely held entity--temporary 

circumstances outside entity's control 

 

  Without limiting section 842-230, an entity is an IMR widely held 

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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(i)  the IMR entity is an 

*

IMR widely held entity; 

 

(ii)  70% or less of the managing entity's income, for the 

income year, is income received from the IMR entity or 

entities 

*

connected with the IMR entity; 

 

(iii)  if the managing entity has been carrying out investment 

management activities for 18 months or less--it takes 

all reasonable steps to ensure that the proportion of its 

income received from the IMR entity or entities 

connected with the IMR entity, for the income year in 

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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(ii)  the 

*

independent Australian fund manager or any entity 

*

connected with the independent Australian fund 

manager; and 

 

(b)  the independent Australian fund manager, or an entity 

connected with the independent Australian fund manager, is 

taking steps to address those circumstances. 

 

(3)  Work out the unadjusted concessional amount as follows: 

Amount not

Amounts not

Disregarded

Disregarded

assessable

deductible

capital gains

capital losses

or exempt

 

where: 

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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income that is non-assessable non-exempt income of the IMR 

entity because of paragraph 842-215(2)(a), and not because 

of paragraph 842-215(1)(a). 

disregarded capital gains is the amount obtained by adding 

together: 

 

(a)  the sum (the 842-215(1)(c) amount) of the amounts of the 

*

capital gains that: 

 

(i)  are from 

*

CGT events that happen in the income year; 

and 

 

(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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(b)  the 842-215(2)(a) amount; 

 

(c)  the 842-215(1)(c) amount; 

 

(d)  the 842-215(2)(c) amount. 

Do not apply the sum to reduce an amount referred to in a 

paragraph (other than paragraph (a)) unless the sum has been 

applied to reduce to zero the amount referred to in each paragraph 

preceding that paragraph. 

 

(5)  If the 842-215(1)(c) amount or the 842-215(2)(c) amount relates to 

more than one 

*

capital gain, a reduction of the amount under 

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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Part 2

--Other amendments 

Income Tax Assessment Act 1936 

2  Section 94T 

Before "For", insert "(1)". 

3  At the end of section 94T 

Add: 

 

(2)  In determining whether the partnership carries on business in 

Australia for the purposes of subparagraph (1)(f)(i), if, for the year 

of income, the partnership is an IMR entity (within the meaning of 

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 

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Part 2  Other amendments 

 

 

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No.      , 2015 

 

Income Tax Assessment Act 1997 

5  Section 11-55 

(after table item headed "GST") 

Insert: 

investment manager regime 

 

IMR concessions .................................................................  842-215 

6  Subsection 995-1(1) 

Repeal the following definitions: 

 

(a)  definition of IMR capital gain

 

(b)  definition of IMR capital loss

 

(c)  definition of IMR deduction

7  Subsection 995-1(1) 

Insert: 

10 

IMR entity has the meaning given by section 842-220. 

11 

IMR financial arrangement has the meaning given by 

12 

section 842-225. 

13 

8  Subsection 995-1(1) 

14 

Repeal the following definitions: 

15 

 

(a)  definition of IMR foreign fund

16 

 

(b)  definition of IMR income

17 

9  Subsection 995-1(1) 

18 

Insert: 

19 

IMR widely held entity has the meaning given by sections 842-230 

20 

and 842-240. 

21 

independent Australian fund manager has the meaning given by 

22 

section 842-245. 

23 

10  Subsection 995-1(1) 

24 

Repeal the following definitions: 

25 

 

(a)  definition of non-IMR Division 6E net income

26 

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Other amendments  Part 2 

 

 

No.      , 2015 

Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill 

2015 

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(b)  definition of non-IMR net capital gain

 

(c)  definition of non-IMR net income

 

(d)  definition of non-IMR partnership loss

 

(e)  definition of non-IMR partnership net income

 

(f)  definition of pre-2012 IMR capital gain

 

(g)  definition of pre-2012 IMR income

11  Application of amendments 

The amendments made by this Part (other than item 12) apply in 

relation to the income years in relation to which, under section 842-207 

of the Income Tax (Transitional Provisions) Act 1997 as amended by 

10 

this Act, the new Subdivision 842-I (within the meaning of that section) 

11 

applies. 

12 

Income Tax (Transitional Provisions) Act 1997 

13 

12  Before section 842-210 

14 

Insert: 

15 

842-207  Application of replacement version of Subdivision 842-I 

16 

 

(1)  The new Subdivision 842-I applies, or is taken to have applied, in 

17 

relation to: 

18 

 

(a)  the 2015-16 income year and later income years; and 

19 

 

(b)  if an entity chooses to apply the new Subdivision 842-I in 

20 

relation to the 2011-12, 2012-13, 2013-14 and 2014-15 

21 

income years--those income years. 

22 

 

(2)  In this section: 

23 

new Subdivision 842-I means Subdivision 842-I (Investment 

24 

Manager Regime) of the Income Tax Assessment Act 1997, as 

25 

substituted by Schedule 7 to the Tax and Superannuation Laws 

26 

Amendment (2015 Measures No. 1) Act 2015

27 

Note: 

The new Subdivision 842-I replaced a previous version of that 

28 

Subdivision, which applied in relation to assessments for the 2010-11 

29 

income year and later income years (see item 17 of Schedule 1 to the 

30 

Tax Laws Amendment (Investment Manager Regime) Act 2012). 

31 

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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 

earlier income years 

 

(1)  This section applies for the purposes of: 

 

(a)  this Subdivision (apart from section 842-207); and 

 

(b)  Subdivision 842-I (Investment Manager Regime) of the 

Income Tax Assessment Act 1997, as substituted by 

Schedule 7 to the Tax and Superannuation Laws Amendment 

(2015 Measures No. 1) Act 2015 (the new IMR Schedule). 

 

(2)  Treat an entity as an IMR foreign fund if, and only if: 

 

(a)  it is an IMR entity (within the meaning given by 

10 

section 842-220 of the Income Tax Assessment Act 1997, as 

11 

inserted by the new IMR Schedule); and 

12 

 

(b)  subject to subsection (3) of this section, it is an IMR widely 

13 

held entity (within the meaning given by sections 842-230 

14 

and 842-240 of the Income Tax Assessment Act 1997, as 

15 

inserted by the new IMR Schedule); and 

16 

 

(c)  the entity chooses to be treated as an IMR foreign fund for 

17 

those purposes. 

18 

 

(3)  Treat subsection 842-230(1) of the Income Tax Assessment Act 

19 

1997, as inserted by the new IMR Schedule, as not applying to the 

20 

entity. 

21 

 


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