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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 (Norfolk Island Reforms)
Bill 2015
No. , 2015
(Treasury)
A Bill for an Act to amend the law relating to
taxation and superannuation, and for related
purposes
No. , 2015
Tax and Superannuation Laws Amendment (Norfolk Island Reforms)
Bill 2015
i
Contents
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 1
3
Schedules ........................................................................................... 2
Schedule 1--Income tax (including the Medicare levy)
3
Income Tax Assessment Act 1936
3
Income Tax Assessment Act 1997
3
Income Tax (Transitional Provisions) Act 1997
5
Schedule 2--Superannuation guarantee
7
Superannuation Guarantee (Administration) Act 1992
7
No. , 2015
Tax and Superannuation Laws Amendment (Norfolk Island Reforms)
Bill 2015
1
A Bill for an Act to amend the law relating to
1
taxation and superannuation, and for related
2
purposes
3
The Parliament of Australia enacts:
4
1 Short title
5
This Act may be cited as the Tax and Superannuation Laws
6
Amendment (Norfolk Island Reforms) Act 2015.
7
2 Commencement
8
This Act commences on 1 July 2016.
9
2
Tax and Superannuation Laws Amendment (Norfolk Island Reforms)
Bill 2015
No. , 2015
3 Schedules
1
Legislation that is specified in a Schedule to this Act is amended or
2
repealed as set out in the applicable items in the Schedule
3
concerned, and any other item in a Schedule to this Act has effect
4
according to its terms.
5
Income tax (including the Medicare levy) Schedule 1
No. , 2015
Tax and Superannuation Laws Amendment (Norfolk Island Reforms)
Bill 2015
3
Schedule 1
--Income tax (including the
1
Medicare levy)
2
3
Income Tax Assessment Act 1936
4
1 Division 1A of Part III
5
Repeal the Division.
6
2 Paragraph 202DDB(2)(a)
7
Omit "or 202EF, or both".
8
3 Sub-subparagraph 202DDB(2)(b)(ii)(A)
9
Omit "or 202EF, or both".
10
4 Section 202EF
11
Repeal the section.
12
5 Paragraphs 251S(1)(a) and (b)
13
Omit "other than a Territory resident (within the meaning of
14
section 24C)".
15
6 At the end of paragraph 251T(a)
16
Add "or".
17
7 Paragraph 251T(b)
18
Repeal the paragraph.
19
8 Paragraph 251U(1)(d)
20
Omit ", or was a resident only because the definition of Australia
21
includes the prescribed Territory (within the meaning of section 24B)".
22
Income Tax Assessment Act 1997
23
9 Section 11-
15 (table item headed "foreign aspects of
24
income taxation")
25
Omit:
26
Schedule 1 Income tax (including the Medicare levy)
4
Tax and Superannuation Laws Amendment (Norfolk Island Reforms)
Bill 2015
No. , 2015
Territory resident company or trust, income from
sources outside Australia ..............................................
24F
Territory resident, income from sources in a prescribed
Territory ........................................................................
24G
10 Section 109-60 (table item 1)
1
Omit "section 24P", substitute "subsection 102-25(1) of the Income Tax
2
(Transitional Provisions) Act 1997".
3
11 Section 109-60 (after table item 1)
4
Insert:
5
1A
CGT event happens to
Norfolk Island asset
30 June 2016
subsection 102-25(2) of
the Income Tax
(Transitional Provisions)
Act 1997
12 Section 112-97 (table item 2)
6
Omit "section 24P", substitute "subsection 102-25(1) of the Income Tax
7
(Transitional Provisions) Act 1997".
8
13 Section 112-97 (after table item 2)
9
Insert:
10
2AA
CGT event happens to
Norfolk Island asset
First element of cost
base and reduced cost
base
subsection 102-25(2)
of the Income Tax
(Transitional
Provisions) Act 1997
14 Section 118-1 (note 1)
11
Omit:
12
•
section 24B (about External Territories);
13
15 Paragraph 202-45(b)
14
Repeal the paragraph.
15
16 Subsection 960-505(1) (note 1)
16
Omit "Note 1", substitute "Note".
17
Income tax (including the Medicare levy) Schedule 1
No. , 2015
Tax and Superannuation Laws Amendment (Norfolk Island Reforms)
Bill 2015
5
17 Subsection 960-505(1) (note 2)
1
Repeal the note.
2
Income Tax (Transitional Provisions) Act 1997
3
18 At the end of Division 102
4
Add:
5
102-25 Transitional capital gains tax provisions for certain Cocos
6
(Keeling) Islands and Norfolk Island assets
7
(1) If:
8
(a) an entity was a prescribed person (within the meaning of
9
former Division 1A of Part III of the Income Tax Assessment
10
Act 1936) because of residence in the Territory of Cocos
11
(Keeling) Islands on or before 30 June 1991; and
12
(b) the entity acquired a CGT asset on or before that day; and
13
(c) the asset is not a pre-CGT asset; and
14
(d) had a CGT event happened in relation to the asset
15
immediately before 1 July 1991, and had the Income Tax
16
Assessment Act 1997 been in force at the time of the event,
17
any capital gain or capital loss from the event would have
18
been disregarded because the entity was a prescribed person;
19
then, for the purposes of Parts 3-1 and 3-3 of the Income Tax
20
Assessment Act 1997:
21
(e) the asset is taken to have been acquired by the entity on
22
30 June 1991; and
23
(f) the first element of the asset's cost base in the hands of the
24
entity (at the end of that day) is its market value at that time.
25
Note:
A prescribed person was a Territory resident, a Territory company or a
26
trustee of a Territory trust, as defined by former sections 24C, 24D
27
and 24E of the Income Tax Assessment Act 1936.
28
(2) If:
29
(a) an entity was a prescribed person (within the meaning of
30
former Division 1A of Part III of the Income Tax Assessment
31
Act 1936) because of residence in Norfolk Island on or before
32
30 June 2016; and
33
Schedule 1 Income tax (including the Medicare levy)
6
Tax and Superannuation Laws Amendment (Norfolk Island Reforms)
Bill 2015
No. , 2015
(b) the entity acquired a CGT asset on or before that day; and
1
(c) the asset is not a pre-CGT asset; and
2
(d) had a CGT event happened in relation to the asset
3
immediately before 1 July 2016, any capital gain or capital
4
loss from the event would have been disregarded because the
5
entity was a prescribed person;
6
then, for the purposes of Parts 3-1 and 3-3 of the Income Tax
7
Assessment Act 1997:
8
(e) the asset is taken to have been acquired by the entity on
9
30 June 2016; and
10
(f) the first element of the asset's cost base in the hands of the
11
entity (at the end of that day) is its market value at that time.
12
(3) Despite Division 121 of the Income Tax Assessment Act 1997, the
13
entity is not required to keep records of the date of acquisition of
14
an asset in relation to which subsection (1) or (2) of this section
15
applies, or its cost base on 30 June 1991 or 30 June 2016 (as the
16
case requires).
17
(4) However, if, as at the date on which a CGT event happens in
18
relation to the asset, the entity has complied with Division 121 of
19
the Income Tax Assessment Act 1997 in relation to the asset, the
20
entity may choose that this section does not apply in relation to the
21
asset.
22
19 Application
23
The amendments made by this Part (other than item 18) apply in
24
relation to the 2016-17 income year and later income years.
25
Superannuation guarantee Schedule 2
No. , 2015
Tax and Superannuation Laws Amendment (Norfolk Island Reforms)
Bill 2015
7
Schedule 2
--Superannuation guarantee
1
2
Superannuation Guarantee (Administration) Act 1992
3
1 Paragraphs 27(1)(b) and (c)
4
Repeal the paragraphs, substitute:
5
(b) salary or wages paid to an employee who is not a resident of
6
Australia for work done outside Australia (except to the
7
extent that the salary or wages relate to employment covered
8
by a certificate under section 15C);
9
(c) salary or wages paid by an employer who is not a resident of
10
Australia to an employee who is a resident of Australia for
11
work done outside Australia;
12
2 Application and transitional
13
(1)
The amendments made by this Part apply in relation to quarters starting
14
on or after 1 July 2016.
15
(2)
However, for the purpose of making the calculation of an employer's
16
individual superannuation guarantee shortfall for an employee for a
17
quarter under section 19 of the Superannuation Guarantee
18
(Administration) Act 1992, if:
19
(a) some or all of the salary or wages paid by the employer to the
20
employee for the quarter consists of Norfolk Island salary or
21
wages; and
22
(b) the quarter occurs in a financial year starting on or after1 July
23
2016, and ending before 1 July 2027;
24
the total salary and wages paid by the employer to the employee for the
25
quarter is taken to be reduced by an amount worked out using the
26
formula:
27
Charge
Norfolk Island
Total Norfolk Island salary
percentage
charge percentage
or wages paid by
the employer to the
Charge
employee for the quarter
percentage
28
where:
29
Schedule 2 Superannuation guarantee
8
Tax and Superannuation Laws Amendment (Norfolk Island Reforms)
Bill 2015
No. , 2015
charge percentage is the charge percentage for the employer for the
1
quarter, as specified in subsection 19(2) of the Superannuation
2
Guarantee (Administration) Act 1992.
3
Norfolk Island charge percentage is:
4
(a) if the quarter occurs in the financial year starting on 1 July
5
2016--1; or
6
(b) if the quarter occurs in a later financial year--the number
7
worked out by increasing by 1 the Norfolk Island charge
8
percentage for a quarter that occurred in the financial year
9
preceding that later financial year.
10
Example: If the quarter occurs in the 2018-19 financial year, the Norfolk
11
Island charge percentage will be 3, because in the quarters of the
12
2017-18 financial year it will have been 2 (having increased by 1
13
from the 2016-17 financial year).
14
(3)
In this item:
15
Norfolk Island salary or wages means salary or wages that, if the
16
amendments made by this Part had not been made, would, because of
17
subparagraph 27(1)(b)(ii) or (c)(ii) of the Superannuation Guarantee
18
(Administration) Act 1992, not have been taken into account for the
19
purpose of making a calculation under section 19 of that Act.
20