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This is a Bill, not an Act. For current law, see the Acts databases.
2013-2014-2015
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Tax and Superannuation Laws
Amendment (2015 Measures No. 5) Bill
2015
No. , 2015
(Treasury)
A Bill for an Act to amend the law relating to
taxation, and for related purposes
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 5) Bill
2015
i
Contents
1
Short title ............................................................................................ 1
2
Commencement .................................................................................. 1
3
Schedules ............................................................................................ 2
Schedule 1--Modernising the car expense deduction rules
3
Part 1--Main amendments
3
Income Tax Asse ssment Act 1997
3
Part 2--Other amendments
4
Fringe Benefits Tax Assessment Act 1986
4
Income Tax Asse ssment Act 1997
7
Part 3--Application and transitional provisions
13
Schedule 2--Zone tax offset
14
Income Tax Asse ssment Act 1936
14
Schedule 3--Limiting FBT concessions on salary packaged
entertainme nt benefits
16
Fringe Benefits Tax Assessment Act 1986
16
Schedule 4--Third party reporting
20
Part 1--Main amendments
20
Taxation Administration Act 1953
20
Part 2--Other amendments
26
Income Tax Asse ssment Act 1997
26
Tax Agent Services Act 2009
26
Taxation Administration Act 1953
27
Part 3--Contingent amendments
30
Division 1--Amendments if the Foreign Acquisitions and Takeovers
Legislation Amendment Act 2015 has not already
received the Royal Assent
30
Taxation Administration Act 1953
30
Division 2--Amendments if the Foreign Acquisitions and Takeovers
Legislat ion Amend ment Act 2015 co mmences
30
ii
Tax and Superannuation Laws Amendment (2015 Measures No. 5) Bill
2015
No. , 2015
Taxation Administration Act 1953
30
Part 4--Application of amendments
31
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 5) Bill
2015
1
A Bill for an Act to amend the law relating to
1
taxation, and for related purposes
2
The Parliament of Australia enacts:
3
1 Short title
4
This Act may be cited as the Tax and Superannuation Laws
5
Amendment (2015 Measures No. 5) Act 2015.
6
2 Commencement
7
(1) Each provision of this Act specified in column 1 of the table
8
commences, or is taken to have commenced, in accordance with
9
column 2 of the table. Any other statement in column 2 has effect
10
according to its terms.
11
12
2
Tax and Superannuation Laws Amendment (2015 Measures No. 5) Bill
2015
No. , 2015
Commencement information
Column 1
Column 2
Column 3
Provisions
Commencement
Date/Details
1. Sections 1 to 3
and anything in
this Act not
elsewhere covered
by this table
The day this Act receives the Royal Assent.
2. Schedules 1, 2
and 3
The day this Act receives the Royal Assent.
3. Schedule 4,
Parts 1 and 2
The day this Act receives the Royal Assent.
4. Schedule 4,
Part 3, Division 1
The day this Act receives the Royal Assent.
However, if the Foreign Acquisitions and
Tak eovers Legislation Amendment Act 2015
receives the Royal Assent before that day,
the provisions do not commence at all.
5. Schedule 4,
Part 3, Division 2
The day this Act receives the Royal Assent.
However, the provisions do not commence
at all if Schedule 4 to the Foreign
Acquisitions and Tak eovers Legislation
Amendment Act 2015 does not commence.
6. Schedule 4,
Part 4
The day this Act receives the Royal Assent.
Note:
This table relates only to the provisions of this Act as originally
1
enacted. It will not be amended to deal with any later amendments of
2
this Act.
3
(2) Any information in column 3 of the table is not part of this Act.
4
Information may be inserted in this column, or information in it
5
may be edited, in any published version of this Act.
6
3 Schedules
7
Legislation that is specified in a Schedule to this Act is amended or
8
repealed as set out in the applicable items in the Schedule
9
concerned, and any other item in a Schedule to this Act has effect
10
according to its terms.
11
Modernising the car expense deduction rules Schedule 1
Main amendments Part 1
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 5) Bill
2015
3
Schedule 1--Modernising the car expense
1
deduction rules
2
Part 1--Main amendments
3
Income Tax Assessment Act 1997
4
1 Subsection 28-25(1)
5
Repeal the subsection, substitute:
6
(1) To calculate your deduction using the "cents per kilometre"
7
method, use this formula:
8
*
*
Rate of cents/kilometre
Number of business kilometres
determined under subsection (4)
travelled by the car in the income year
for the car for the income year
9
2 At the end of section 28-25
10
Add:
11
(4) For the purposes of subsection (1), the Commissioner may, by
12
legislative instrument, determine rates of cents per kilometre for
13
cars for an income year.
14
(5) In determining a rate, the Commissioner must have regard to the
15
average operating costs for the cars to be covered by that rate.
16
Note:
Examples of operating costs include fixed costs such as registration,
17
insurance and depreciation, and variable costs such as fuel and
18
maintenance.
19
3 Subdivisions 28-D and 28-E
20
Repeal the Subdivisions.
21
Schedule 1 Modernising the car expense deduction rules
Part 2 Other amendments
4
Tax and Superannuation Laws Amendment (2015 Measures No. 5) Bill
2015
No. , 2015
Part 2--Other amendments
1
Fringe Benefits Tax Assessment Act 1986
2
4 Paragraph 19(1)(d)
3
Repeal the paragraph, substitute:
4
(d) if:
5
(i) paragraph (ca) does not apply; and
6
(ii) the loan fringe benefit is a car loan benefit in respect of
7
a car held by the recipient during a period (the holding
8
period) in the year of tax;
9
the recipient gives a declaration to the employer, before the
10
declaration date and in a form approved by the
11
Commissioner, that purports to set out:
12
(iii) the holding period; and
13
(iv) the number of whole business kilometres travelled by
14
the car during the holding period; and
15
(v) the number of whole kilometres travelled by the car
16
during the holding period;
17
5 Subparagraph 19(1)(g)(ii)
18
Repeal the subparagraph.
19
6 Paragraph 19(1)(h)
20
Repeal the paragraph.
21
7 Subsections 19(3) and (4)
22
Repeal the subsections.
23
8 Paragraph 24(1)(f)
24
Repeal the paragraph, substitute:
25
(f) if:
26
(i) paragraph (ea) does not apply; and
27
(ii) the expense payment fringe benefit is a car expense
28
payment benefit in respect of a car held by the recipient
29
during a period (the holding period) in the year of tax;
30
Modernising the car expense deduction rules Schedule 1
Other amendments Part 2
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 5) Bill
2015
5
the recipient gives a declaration to the employer, before the
1
declaration date and in a form approved by the
2
Commissioner, that purports to set out:
3
(iii) the holding period; and
4
(iv) the number of whole business kilometres travelled by
5
the car during the holding period; and
6
(v) the number of whole kilometres travelled by the car
7
during the holding period;
8
9 Subparagraph 24(1)(j)(ii)
9
Repeal the subparagraph.
10
10 Paragraph 24(1)(k)
11
Repeal the paragraph.
12
11 Subsections 24(7) and (8)
13
Repeal the subsections.
14
12 Paragraph 44(1)(e)
15
Repeal the paragraph, substitute:
16
(e) if:
17
(i) paragraph (da) does not apply; and
18
(ii) the property fringe benefit is a car property benefit in
19
respect of a car held by the recipient during a period (the
20
holding period) in the year of tax;
21
the recipient gives a declaration to the employer, before the
22
declaration date and in a form approved by the
23
Commissioner, that purports to set out:
24
(iii) the holding period; and
25
(iv) the number of whole business kilometres travelled by
26
the car during the holding period; and
27
(v) the number of whole kilometres travelled by the car
28
during the holding period;
29
13 Subparagraph 44(1)(h)(ii)
30
Repeal the subparagraph.
31
Schedule 1 Modernising the car expense deduction rules
Part 2 Other amendments
6
Tax and Superannuation Laws Amendment (2015 Measures No. 5) Bill
2015
No. , 2015
14 Paragraph 44(1)(j)
1
Repeal the paragraph.
2
15 Subsections 44(3) and (4)
3
Repeal the subsections.
4
16 Paragraph 52(1)(e)
5
Repeal the paragraph, substitute:
6
(e) if:
7
(i) paragraph (da) does not apply; and
8
(ii) the fringe benefit is a car residual benefit in respect of a
9
car held by the recipient during a period (the holding
10
period) in the year of tax;
11
the recipient gives a declaration to the employer, before the
12
declaration date and in a form approved by the
13
Commissioner, that purports to set out:
14
(iii) the holding period; and
15
(iv) the number of whole business kilometres travelled by
16
the car during the holding period; and
17
(v) the number of whole kilometres travelled by the car
18
during the holding period;
19
17 Subparagraph 52(1)(h)(ii)
20
Repeal the subparagraph.
21
18 Paragraph 52(1)(j)
22
Repeal the paragraph.
23
19 Subsections 52(3) and (4)
24
Repeal the subsections.
25
20 Subsection 136(1) (definition of basic car rate)
26
Repeal the definition, substitute:
27
basic car rate, for a car for a year of tax ending on 31 March in a
28
year, means the rate determined under subsection 28-25(4) of the
29
Income Tax Assessment Act 1997 for the car for the year of income
30
ending on 30 June in that year.
31
Modernising the car expense deduction rules Schedule 1
Other amendments Part 2
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 5) Bill
2015
7
Income Tax Assessment Act 1997
1
21 Section 12-
5 (table item headed "car expenses")
2
Omit:
3
"one-third of actual expenses" method ................................. Subdivision 28-E
22 Section 12-
5 (table item headed "car expenses")
4
Omit:
5
"12% of original value" method ............................................. Subdivision 28-D
23 Section 28-5
6
Repeal the section, substitute:
7
Schedule 1 Modernising the car expense deduction rules
Part 2 Other amendments
8
Tax and Superannuation Laws Amendment (2015 Measures No. 5) Bill
2015
No. , 2015
28-5 Map of this Division
1
2
24 Section 28-12
3
Omit "4 methods" (wherever occurring), substitute "2 methods".
4
25 Subsection 28-12(2)
5
Omit "any of the methods", substitute "either of the methods".
6
26 Section 28-15
7
Repeal the section, substitute:
8
The 2 methods of
calculating car expenses
Section 28-12
contains the basic
operative provision.
Choosing the best method
is up to you. Hence it is
important to understand
the methods and how
they differ.
The "log book" method
is more complicated
because it involves
further Subdivisions
about log books and
odometer records.
The exceptions cover
unusual cases which
will not apply to
most taxpayers.
Subdivision 28-B
Choosing which
method to use
"cents per km"
method
"log book"
method
Subdivision 28-F
Subdivision 28-C
Log book and
odometer records
Substantiating expenses
(see Subdivision 900-C)
Exceptions to the above
Subdivision 28-J
Subdivisions 28-G,
28-H and 28-I
Subdivision 28-A
Modernising the car expense deduction rules Schedule 1
Other amendments Part 2
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 5) Bill
2015
9
28-15 Choosing between the 2 methods
1
(1) Below is a diagram giving information about the 2 methods of
2
calculating car expense deductions.
3
(2) The 2 methods give you the choice of which method best suits your
4
situation and needs. For instance, one method may involve more
5
paperwork than the other, but could give you bigger deductions.
6
7
8
27 Subsection 28-20(1)
9
Omit "any other method", substitute "the other method".
10
"Cents per km"
method
"Log book"
method
Special
eligibility
rules
Establish
expense
base
None
Car must
have been
"held"
Business
kms
travelled
Dollar value of car
expenses e.g.
fuel tyres servicing
Multiply
by
Multiply
by
X cents for each km
Business
use
percentage
Calculate
deduction
Do you have to
substantiate the
expenses?
No
Yes
Schedule 1 Modernising the car expense deduction rules
Part 2 Other amendments
10
Tax and Superannuation Laws Amendment (2015 Measures No. 5) Bill
2015
No. , 2015
28 Subdivision 28-J (heading)
1
Repeal the heading, substitute:
2
Subdivision 28-J--Situations where you cannot use, or do not
3
need to use, one of the 2 methods
4
29 Section 28-160
5
Omit "any of the 4 methods", substitute "either of the 2 methods".
6
30 Subsections 28-165(1), 28-170(1) and (2), 28-175(1) and (2),
7
and 28-180(2) and (3)
8
Omit "4 methods", substitute "2 methods".
9
31 Subsection 40-25(6)
10
Repeal the subsection.
11
32 Section 40-55
12
Repeal the section, substitute:
13
40-55 Use of the "cents per kilometre" car expense deduction
14
method
15
You cannot deduct any amount for the decline in value of a
*
car for
16
an income year if you use the "cents per kilometre" method for the
17
car for that year.
18
Note:
See Subdivision 28-C for that method.
19
33 Paragraph 40-370(1)(c)
20
Repeal the paragraph, substitute:
21
(c) you chose the "cents per kilometre" method in
22
Subdivision 28-C for deducting your car expenses for the car
23
for one or more other income years.
24
34 Subsection 40-370(1) (note 1)
25
Omit "or the "one-third of actual expenses" method".
26
Modernising the car expense deduction rules Schedule 1
Other amendments Part 2
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 5) Bill
2015
11
35 Subsection 40-370(1) (note 2)
1
Omit "or the "12% of original value" method".
2
36 Subsections 40-370(3) and (4)
3
Repeal the subsections, substitute:
4
(3) In working out the
*
adjustable value for the income years for which
5
you chose the "cents per kilometre method", assume the decline in
6
value was calculated under this Division on the same basis as those
7
income years when that method did not apply.
8
(4) In working out the reduction in step 2 for the income years for
9
which you chose the "cents per kilometre method", assume that:
10
(a) you had not chosen that method for the
*
car; and
11
(b) Division 28 (about car expenses) had not applied to the car;
12
and
13
(c) 20% was the extent of your use of the car for
*
taxable
14
purposes.
15
37 Paragraph 41-10(3)(a)
16
Repeal the paragraph.
17
38 Subsection 900-70(1)
18
Omit "the "one-third of actual expenses" method or".
19
39 Subsection 900-70(1)
20
Omit "Subdivision 28-E tells you about the "one-third of actual
21
expenses" method and".
22
40 Subsection 900-70(2)
23
Repeal the subsection.
24
41 Subsections 900-250(1) and (2)
25
Omit "4 methods", substitute "2 methods".
26
42 Subsection 900-250(4)
27
Repeal the subsection.
28
Schedule 1 Modernising the car expense deduction rules
Part 2 Other amendments
12
Tax and Superannuation Laws Amendment (2015 Measures No. 5) Bill
2015
No. , 2015
43 Subsection 995-1(1) (definition of business kilometres)
1
Omit ", 28-50, 28-75".
2
44 Subsection 995-1(1)
3
Repeal the following definitions:
4
(a) definition of car-less day;
5
(b) definition of full year car deduction.
6
Modernising the car expense deduction rules Schedule 1
Application and transitional provisions Part 3
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 5) Bill
2015
13
Part 3--Application and transitional provisions
1
45 Application of amendments
2
(1)
Subject to subitems (2) and (3), the amendments made by this Schedule
3
apply in relation to the 2015-16 income year and later income years.
4
(2)
The amendments of the Fringe Benefits Tax Assessment Act 1986 made
5
by this Schedule apply in relation to the 2016-17 FBT year and later
6
FBT years.
7
(3)
Despite the amendments of section 40-370 of the Income Tax
8
Assessment Act 1997 made by this Schedule, that section continues to
9
apply, in relation to a balancing adjustment event, as if those
10
amendments had not been made if:
11
(a) that balancing adjustment event occurs at or after the start of
12
the 2015-16 income year for a car you held; and
13
(b) you chose the "12% of original value" method in former
14
Subdivision 28-D of that Act for deducting your car expenses
15
for the car for one or more earlier income years.
16
46 Transitional
--initial rate of cents per kilometre
17
Treat the Commissioner as having determined, under
18
subsection 28-25(4) of the Income Tax Assessment Act 1997 (as inserted
19
by this Schedule), the rate of 66 cents per kilometre for all cars for the
20
2015-16 income year.
21
Schedule 2 Zone tax offset
14
Tax and Superannuation Laws Amendment (2015 Measures No. 5) Bill
2015
No. , 2015
Schedule 2--Zone tax offset
1
2
Income Tax Assessment Act 1936
3
1 Paragraph 79A(2)(b)
4
Omit "if the taxpayer is a resident of Zone A in the year of income but
5
has not resided or actually been in the special area in Zone A or the
6
special area in Zone B during any part of the year of income", substitute
7
"if the taxpayer is a resident of Zone A (but not of the special area in
8
Zone A or of the special area in Zone B) in the year of income".
9
2 Paragraph 79A(2)(c)
10
Omit "if the taxpayer is a resident of Zone B in the year of income but
11
has not resided or actually been in Zone A or the special area in Zone B
12
during any part of the year of income", substitute "if the taxpayer is a
13
resident of Zone B (but not of Zone A or of the special area in Zone B)
14
in the year of income".
15
3 Paragraph 79A(3B)(a)
16
Omit "resided", substitute "had his or her usual place of residence".
17
4 At the end of paragraph 79A(3B)(a)
18
Add "or".
19
5 Paragraph 79A(3B)(b)
20
Repeal the paragraph.
21
6 Paragraph 79A(3B)(c)
22
Omit "resided", substitute "had his or her usual place of residence".
23
7 At the end of paragraph 79A(3B)(c)
24
Add "or".
25
8 Subparagraphs 79A(3B)(d)(i) and (ii)
26
Omit "resided, or actually was,", substitute "had his or her usual place
27
of residence".
28
Zone tax offset Schedule 2
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 5) Bill
2015
15
9 Subparagraph 79A(3B)(d)(iii)
1
Omit "and".
2
10 Subparagraphs 79A(3B)(e)(i) and (ii)
3
Omit "resided", substitute "had his or her usual place of residence".
4
11 Subparagraph 79A(3B)(e)(iv)
5
Omit "and" (last occurring).
6
12 Subparagraph 79A(3B)(e)(v)
7
Omit "resided", substitute "had his or her usual place of residence".
8
13 Subsection 79A(3C)
9
Omit "residing, or actually being, in a particular area", substitute
10
"having his or her usual place of residence in a particular area".
11
14 Paragraphs 79A(3C)(a) and (b)
12
Omit "residing, or actually being,", substitute "having his or her usual
13
place of residence".
14
15 Application of amendments
15
The amendments made by this Schedule apply to the 2015-16 year of
16
income and later years of income.
17
Schedule 3 Limiting FBT concessions on salary packaged entertainment benefits
16
Tax and Superannuation Laws Amendment (2015 Measures No. 5) Bill
2015
No. , 2015
Schedule 3--Limiting FBT concessions on
1
salary packaged entertainment
2
benefits
3
4
Fringe Benefits Tax Assessment Act 1986
5
1 Subsection 5B(1)
6
Repeal the subsection.
7
2 Subsection 5B(1E) (method statement, steps 3 and 4)
8
Repeal the steps, substitute:
9
Step 3. If step 2 does not apply in respect of one or more
10
employees of the employer, reduce the individual
11
grossed-up non-exempt amount for each such employee
12
by $30,000, but not below nil.
13
Step 4. If the amount calculated under step 2 or 3 in respect of an
14
employee is positive, reduce that amount (but not below
15
nil) by the lesser of:
16
(a)
$5,000; and
17
(b)
so much of the employee's individual grossed-up
18
non-exempt amount as relates to benefits covered
19
by subsection (1M) (about salary packaged meal
20
entertainment and entertainment facility leasing
21
benefits).
22
Step 5. Add together the amounts calculated under step 4 in
23
relation to the employees of the employer. The total
24
amount is the employer's aggregate non-exempt amount
25
for the year of tax.
26
3 After subsection 5B(1L)
27
Insert:
28
Limiting FBT concessions on salary packaged entertainment benefits Schedule 3
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 5) Bill
2015
17
Salary packaged meal entertainment and entertainment facility
1
leasing benefits
2
(1M) This subsection covers a benefit that is provided under a salary
3
packaging arrangement if:
4
(a) the benefit is constituted by the provision of meal
5
entertainment (as defined in section 37AD, whether or not
6
the employer has elected that Division 9A of Part III apply to
7
the employer); or
8
(b) the benefit is wholly or partly attributable to entertainment
9
facility leasing expenses.
10
4 Paragraph 5E(3)(a)
11
Repeal the paragraph, substitute:
12
(a) that is:
13
(i) constituted by the provision of meal entertainment (as
14
defined in section 37AD, whether or not the employer
15
has elected that Division 9A of Part III apply to the
16
employer); and
17
(ii) not provided under a salary packaging arrangement; or
18
5 Paragraph 5E(3)(c)
19
Repeal the paragraph, substitute:
20
(c) that is:
21
(i) a benefit whose taxable value is wholly or partly
22
attributable to entertainment facility leasing expenses;
23
and
24
(ii) not provided under a salary packaging arrangement; or
25
6 Section 37AC
26
Repeal the section, substitute:
27
37AC Meal entertainment benefits
28
If, at a particular time:
29
(a) an employer (the provider) to whom this Division applies
30
provides meal entertainment to another person (the
31
recipient); and
32
Schedule 3 Limiting FBT concessions on salary packaged entertainment benefits
18
Tax and Superannuation Laws Amendment (2015 Measures No. 5) Bill
2015
No. , 2015
(b) the meal entertainment is not provided under a salary
1
packaging arrangement;
2
the provision of the meal entertainment is a meal entertainment
3
benefit provided by the provider to the recipient at that time.
4
7 Subsection 65J(2B) (method statement, steps 2 and 3)
5
Repeal the steps (including the note), substitute:
6
Step 2. Reduce the individual grossed-up non-rebatable amount
7
for each employee of the employer by $30,000, but not
8
below zero.
9
Step 2A. If the amount calculated under step 2 in relation to an
10
employee is positive, reduce that amount (but not below
11
zero) by the lesser of:
12
(a)
$5,000; and
13
(b)
so much of the employee's individual grossed-up
14
non-rebatable amount as relates to benefits covered
15
by subsection (2J) (about salary packaged meal
16
entertainment and entertainment facility leasing
17
benefits).
18
Step 3. Add up the results of step 2A for all the employer's
19
employees.
20
8 After subsection 65J(2H)
21
Insert:
22
Salary packaged meal entertainment and entertainment facility
23
leasing benefits
24
(2J) This subsection covers a benefit that is provided under a salary
25
packaging arrangement if:
26
(a) the benefit is constituted by the provision of meal
27
entertainment (as defined in section 37AD, whether or not
28
the employer has elected that Division 9A of Part III apply to
29
the employer); or
30
Limiting FBT concessions on salary packaged entertainment benefits Schedule 3
No. , 2015
Tax and Superannuation Laws Amendment (2015 Measures No. 5) Bill
2015
19
(b) the benefit is wholly or partly attributable to entertainment
1
facility leasing expenses.
2
9 Subsection 136(1) (definition of salary packaging
3
arrangement)
4
After "an employee", insert ", or an associate of an employee,".
5
10 Section 152B
6
Omit "If:", substitute "(1) If:".
7
11 At the end of section 152B
8
Add:
9
(2) This section does not apply to a fringe benefit provided under a
10
salary packaging arrangement.
11
12 Application of amendments
12
The amendments made by this Schedule apply to assessments for the
13
year of tax starting on 1 April 2016 and later years of tax.
14
Schedule 4 Third party reporting
Part 1 Main amendments
20
Tax and Superannuation Laws Amendment (2015 Measures No. 5) Bill
2015
No. , 2015
Schedule 4--Third party reporting
1
Part 1--Main amendments
2
Taxation Administration Act 1953
3
1 At the end of Division 396 in Schedule 1
4
Add:
5
Subdivision 396-B--Information about transactions that could
6
have tax consequences for taxpayers
7
Guide to Subdivision 396-B
8
396-50 What this Subdivision is about
9
The Commissioner can require certain entities to give information
10
about transactions that could reasonably be expected to have tax
11
consequences for other entities.
12
Table of sections
13
Operative provisions
14
396-55
Reporting tax-related information about transactions to the Commissioner
15
396-60
Information required
16
396-65
Exemptions--wholesale clients
17
396-70
Exemptions--other cases
18
396-75
Errors in reports
19
Operative provisions
20
396-55 Reporting tax-related information about transactions to the
21
Commissioner
22
An entity mentioned in column 1 of an item of this table must:
23
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21
(a) prepare a report in the
*
approved form setting out
1
information about any transactions described in that item that
2
happened during this period:
3
(i) a
*
financial year; or
4
(ii) such other period as the Commissioner specifies by
5
legislative instrument for that item; and
6
(b) give the report to the Commissioner on or before:
7
(i) the 31st day after the end of that period; or
8
(ii) such other time after the end of that period as the
9
Commissioner specifies by legislative instrument for
10
that item;
11
unless section 396-65, or a notice or determination under
12
section 396-70, provides that the entity is not required to do so.
13
14
Information to be reported by third parties about transactions
Column 1
Column 2
Item
This entity:
must report information about this transaction:
1
a government related
entity (within the
meaning of the
*
GST
Act), other than a
*
local governing
body
the provision of a grant by the entity to an entity
that has an
*
ABN
2
a government related
entity (within the
meaning of the
*
GST
Act)
the provision of consideration (within the meaning
of the
*
GST Act):
(a) by the entity to an entity; and
(b) wholly or partly for a
*
supply of services;
unless the supply of services is merely incidental to
a supply of goods (within the meaning of the GST
Act)
3
a State or Territory
the transfer of a freehold or leasehold interest in
real property situated in the State or Territory
4
*
ASIC
a transaction about which data has been delivered to
*
ASIC under the
*
market integrity rules
5
a participant (within
the meaning of
Chapter 7 of the
a transaction, involving the participant, that:
(a) results in a change to the type, name or number
of
*
shares in a company, or units in a unit trust,
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2015
No. , 2015
Information to be reported by third parties about transactions
Column 1
Column 2
Item
This entity:
must report information about this transaction:
Corporations Act
2001) in an
*
Australian financial
market
that are held by another entity; and
(b) is a transaction about which data is required to
be delivered to
*
ASIC under the
*
market
integrity rules
6
a company whose
*
shares are listed for
quotation in the
official list of an
*
Australian financial
market
a transaction that:
(a) results in a change to the type, name or number
of
*
shares in the company that are held by an
entity; and
(b) is not a transaction about which data is required
to be delivered to
*
ASIC under the
*
market
integrity rules
7
the trustee of a unit
trust
a transaction that:
(a) results in a change to the type, name or number
of units in the unit trust that are held by an
entity; and
(b) is not a transaction about which data is required
to be delivered to
*
ASIC under the
*
market
integrity rules
8
the trustee of a trust
(other than a unit
trust)
a transaction that results in a change to the type,
name or number of any
*
shares in a company, or
units in a unit trust:
(a) that are held as assets of the trust; and
(b) to which one or more entities are absolutely
entitled as beneficiaries of the trust;
unless the trustee gives the Commissioner an
*
income tax return for the income year in which the
transaction was entered into
9
an administrator of a
payment system
(within the meaning
of the Payment
Systems (Regulation)
Act 1998)
a transaction involving an electronic payment if:
(a) the transaction is facilitated by the payment
system on behalf of an entity; and
(b) the administrator reasonably believes that the
transaction:
(i) provides a payment to the entity, or
provides a refund or cash to a customer
of the entity; and
Third party reporting Schedule 4
Main amendments Part 1
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Tax and Superannuation Laws Amendment (2015 Measures No. 5) Bill
2015
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Information to be reported by third parties about transactions
Column 1
Column 2
Item
This entity:
must report information about this transaction:
(ii) is for the purposes of a
*
business carried
on by the entity
Note:
An administrative penalty applies to a failure to give the report by that
1
time (see subsection 286-75(1)). An administrative penalty applies for
2
any false statements in the report (see section 284-75).
3
396-60 Information required
4
Transactions not involving market participants
5
(1) For the purposes of section 396-55, the information required by the
6
*
approved form about a transaction (other than a transaction
7
described in table item 5 in that section):
8
(a) must relate to the identification, collection or recovery of a
9
possible
*
tax-related liability of a party to the transaction
10
(disregarding any exemption under a
*
taxation law that may
11
apply to those parties); and
12
(b) may relate to identifying the parties to the transaction; and
13
(c) for a transaction described in table item 3 in that section--
14
may include the
*
tax file numbers of those parties to the
15
transaction who have quoted their tax file numbers to the
16
State or Territory concerned.
17
Transactions involving market participants
18
(2) For the purposes of section 396-55, the information required by the
19
*
approved form about a transaction described in table item 5 in that
20
section must relate to identifying the parties to the transaction.
21
Some reporting entities may request tax file numbers
22
(3) A State or Territory may request an entity to quote the entity's
*
tax
23
file number to the State or Territory if:
24
(a) the tax file number is for a report by the State or Territory
25
under section 396-55 about a transaction described in table
26
item 3 in that section; and
27
(b) the entity is a party to the transaction.
28
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No. , 2015
396-65 Exemptions--wholesale clients
1
An entity is not required to include, in a report under
2
section 396-55, information about a transaction described in table
3
item 5, 6, 7 or 8 in that section to the extent that the information
4
relates to a party to the transaction:
5
(a) who is not an individual; and
6
(b) who is being provided a financial product, or a financial
7
service, under the transaction as a wholesale client.
8
Financial product, financial service and wholesale client have the
9
same meanings in this section as they do in Chapter 7 of the
10
Corporations Act 2001.
11
Note:
This exemption does not apply to information relating to any other
12
party to the transaction, such as the party providing the product or
13
service.
14
396-70 Exemptions--other cases
15
Exemptions for particular entities
16
(1) The Commissioner may, in writing, notify an entity that it:
17
(a) is not required to prepare and give reports under
18
section 396-55; or
19
(b) is not required to do so for specified classes of transactions.
20
(2) An entity dissatisfied with a decision to:
21
(a) give it a notice under subsection (1); or
22
(b) not give it a notice under subsection (1);
23
may object against the decision in the manner set out in Part IVC.
24
(3) A notice under subsection (1) is not a legislative instrument.
25
General exemptions
26
(4) The Commissioner may, by legislative instrument, determine that
27
specified classes of entities:
28
(a) are not required to prepare and give reports under
29
section 396-55; or
30
(b) are not required to do so for specified classes of transactions.
31
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Tax and Superannuation Laws Amendment (2015 Measures No. 5) Bill
2015
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396-75 Errors in reports
1
(1) An entity must give to the Commissioner a corrected report if:
2
(a) the entity has given a report to the Commissioner under this
3
Subdivision; and
4
(b) after giving the report, the entity becomes aware of a material
5
error in it.
6
(2) The report must be in the
*
approved form.
7
(3) The report must be given to the Commissioner no later than 28
8
days after the entity becomes aware of the error.
9
Note 1:
An administrative penalty applies to a failure to give the report by that
10
time (see subsection 286-75(1)). An administrative penalty applies for
11
any false statements in the report (see section 284-75).
12
Note 2:
Section 388-55 allows the Commissioner to defer the time for giving
13
an approved form.
14
Schedule 4 Third party reporting
Part 2 Other amendments
26
Tax and Superannuation Laws Amendment (2015 Measures No. 5) Bill
2015
No. , 2015
Part 2--Other amendments
1
Income Tax Assessment Act 1997
2
2 Subsection 995-1(1)
3
Insert:
4
ASIC means the Australian Securities and Investments
5
Commission.
6
Australian financial market means a financial market (within the
7
meaning of Chapter 7 of the Corporations Act 2001) operating
8
under an Australian market licence granted under
9
subsection 795B(1) of that Act.
10
market integrity rules means rules made under section 798G of the
11
Corporations Act 2001.
12
Tax Agent Services Act 2009
13
3 Paragraph 20-30(2)(b)
14
Omit "the Australian Securities and Investments Commission",
15
substitute "
*
ASIC".
16
4 Paragraph 40-20(3)(b)
17
Omit "the Australian Securities and Investments Commission",
18
substitute "
*
ASIC".
19
5 Subparagraph 60-125(8)(c)(iv)
20
Omit "the Australian Securities and Investments Commission",
21
substitute "
*
ASIC".
22
6 Subparagraph 60-125(8)(d)(iii)
23
Omit "the Australian Securities and Investments Commission",
24
substitute "ASIC".
25
7 Subsection 70-40(3A) (heading)
26
Repeal the heading, substitute:
27
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Disclosures to ASIC
1
8 Subsection 70-40(3A)
2
Omit "the Australian Securities and Investments Commission",
3
substitute "
*
ASIC".
4
9 Subsection 70-40(3A)
5
Omit "the Commission", substitute "ASIC".
6
Taxation Administration Act 1953
7
10 Subparagraph 12-400(3)(b)(ii) in Schedule 1
8
Omit "ASIC", substitute "
*
ASIC".
9
11 Subsection 12-403(3) in Schedule 1
10
Omit "ASIC", substitute "
*
ASIC".
11
12 Section 269-50 in Schedule 1
12
Omit "the Australian Securities and Investments Commission",
13
substitute "
*
ASIC".
14
13 Subsection 355-65(3) in Schedule 1 (table item 6A)
15
Omit "the Australian Securities and Investments Commission",
16
substitute "
*
ASIC".
17
14 Paragraph 355-70(4)(l) in Schedule 1
18
Repeal the paragraph, substitute:
19
(l)
*
ASIC.
20
15 Paragraph 355-70(7)(d) in Schedule 1
21
Repeal the paragraph, substitute:
22
(d)
*
ASIC;
23
16 Part 5-25 (heading) in Schedule 1
24
Repeal the heading, substitute:
25
Schedule 4 Third party reporting
Part 2 Other amendments
28
Tax and Superannuation Laws Amendment (2015 Measures No. 5) Bill
2015
No. , 2015
Part 5-25--Record-keeping and other obligations
1
relating to taxpayers
2
17 Division 396 in Schedule 1 (heading)
3
Repeal the heading, substitute:
4
Division 396--Third party reporting
5
Table of Subdivisions
6
Guide to Division 396
7
396-A FATCA
8
396-B Information about transactions that could have tax
9
consequences for taxpayers
10
18 Before section 396-1 in Schedule 1
11
Insert:
12
396-1A What this Division is about
13
Financial institutions must give the Commissioner information for
14
the purposes of the FATCA Agreement.
15
Certain entities must give the Commissioner information about
16
transactions that could reasonably be expected to have tax
17
consequences for other entities.
18
Subdivision 396-A--FATCA
19
Guide to Subdivision 396-A
20
19 Section 396-1 in Schedule 1 (heading)
21
Repeal the heading, substitute:
22
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2015
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396-1 What this Subdivision is about
1
20 Before section 396-5 in Schedule 1
2
Insert:
3
Operative provisions
4
21 Subsection 396-20(1) in Schedule 1
5
Omit "this Division", substitute "this Subdivision".
6
Schedule 4 Third party reporting
Part 3 Contingent amendments
30
Tax and Superannuation Laws Amendment (2015 Measures No. 5) Bill
2015
No. , 2015
Part 3--Contingent amendments
1
Division 1
--Amendments if the Foreign Acquisitions and
2
Takeovers Legislation Amendment Act 2015
3
has not already received the Royal Assent
4
Taxation Administration Act 1953
5
22 Subsection 355-65(4) in Schedule 1 (table item 1)
6
Omit "the Australian Securities and Investments Commission (ASIC)",
7
substitute "
*
ASIC".
8
23 Subsection 355-65(4) in Schedule 1 (table item 2)
9
Omit "ASIC" (first occurring), substitute "
*
ASIC".
10
24 Subsection 355-65(4) in Schedule 1 (table items 3 and 4)
11
Omit "ASIC", substitute "
*
ASIC".
12
Note:
This Division commences only if the Foreign Acquisitions and Takeovers Legislation
13
Amendment Act 2015 has not already received the Royal Assent.
14
Division 2
--Amendments if the Foreign Acquisitions and
15
Takeovers Legislation Amendment Act 2015
16
commences
17
Taxation Administration Act 1953
18
25 Subsection 355-65(4) in Schedule 1 (table item 1)
19
Omit "the Australian Securities and Investments Commission",
20
substitute "
*
ASIC".
21
26 Subsection 355-65(4) in Schedule 1 (table item 1)
22
Omit "the Commission", substitute "ASIC".
23
Note:
This Division commences only if Schedule 4 to the Foreign Acquisitions and Takeovers
24
Legislation Amendment Act 2015 commences.
25
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Application of amendments Part 4
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2015
31
Part 4--Application of amendments
1
27 Application of amendments
2
(1)
Subdivision 396-B in Schedule 1 to the Taxation Administration Act
3
1953 (as inserted by this Schedule) applies in relation to transactions
4
entered into on or after:
5
(a) if table item 3 or 4 in section 396-55 in that Schedule (as
6
inserted by this Schedule) describes the transaction--1 July
7
2016; or
8
(b) otherwise--1 July 2017.
9
(2)
However, subparagraphs 396-55(a)(ii) and (b)(ii) in Schedule 1 to the
10
Taxation Administration Act 1953 (as inserted by this Schedule) apply
11
in relation to transactions entered into on or after:
12
(a) if table item 3 or 4 in section 396-55 in that Schedule (as
13
inserted by this Schedule) describes the transaction--1 July
14
2016; or
15
(b) otherwise--1 July 2020.
16