TAX LAWS AMENDMENT (2005 MEASURES NO. 4) BILL 2005

i Tax Laws Amendment (2005 Measures No. 4) Bill 2005 No. , 2005

Contents

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

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

Schedule(s)....................................................................................2

Schedule 1--Child care tax offset

Part 1--Main amendments

Income Tax Assessment Act 1997

Part 2--Consequential amendments

A New Tax System (Family Assistance) (Administration) Act 1999

Taxation Administration Act 1953

Part 3--Application

Schedule 2--Deductible gift recipients

Income Tax Assessment Act 1997

Schedule 3--Secrecy provisions

Income Tax Assessment Act 1936

Schedule 4--Wine equalisation tax

Part 1--Main amendments

A New Tax System (Wine Equalisation Tax) Act 1999

Part 2--Consequential amendments

Taxation Administration Act 1953

Tax Laws Amendment (2005 Measures No. 4) Bill 2005 No. , 2005 1

A Bill for an Act to amend the law relating to

taxation, and for related purposes

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Tax Laws Amendment (2005

Measures No. 4) Act 2005.

2 Commencement

(1) Each provision of this Act specified in column 1 of the table

commences, or is taken to have commenced, in accordance with

column 2 of the table. Any other statement in column 2 has effect

according to its terms.

2 Tax Laws Amendment (2005 Measures No. 4) Bill 2005 No. , 2005

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

1. Sections 1 to 3

and anything in

this Act not

elsewhere covered

by this table

The day on which this Act receives the

Royal Assent.

2. Schedules 1 to

The day on which this Act receives the

Royal Assent.

3. Schedule 4

A single day to be fixed by Proclamation.

However, if any of the provision(s) do not

commence within the period of 12 months

beginning on the day on which this Act

receives the Royal Assent, they commence

on the first day after the end of that period.

Note:

This table relates only to the provisions of this Act as originally

passed by the Parliament and assented to. It will not be expanded to

deal with provisions inserted in this Act after assent.

(2) Column 3 of the table contains additional information that is not

part of this Act. Information in this column may be added to or

edited in any published version of this Act.

3 Schedule(s)

Each Act 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.

Child care tax offset Schedule 1

Main amendments Part 1

Tax Laws Amendment (2005 Measures No. 4) Bill 2005 No. , 2005 3

Schedule 1--Child care tax offset

Part 1--Main amendments

Income Tax Assessment Act 1997

1 Section 13-1 (table item headed "child")

Before:

first child.....................................................

Subdivision 61-I

insert:

child care.....................................................

Subdivision 61-IA

2 After Subdivision 61-I

Insert:

Subdivision 61-IA--Child care tax offset

Guide to Subdivision 61-IA

61-460 What this Subdivision is about

You are entitled to a tax offset for an income year for child care

fees if you meet certain conditions.

The amount of the offset is 30% of the difference between the

amounts for each child, in the previous year, of child care fees

incurred and child care benefit entitlement. This is subject to an

indexed cap of $4,000 per child.

If the amount of the tax offset exceeds the amount of your income

tax liability, the excess may be transferred to your spouse as a tax

offset.

Table of sections

Operative provisions

61-465

Object of this Subdivision

Schedule 1 Child care tax offset

Part 1 Main amendments

4 Tax Laws Amendment (2005 Measures No. 4) Bill 2005 No. , 2005

Entitlement to the child care tax offset

61-470

Who is entitled to the tax offset

61-475

Meaning of approved child care

61-480

Meaning of entitled to child care benefit and entitlement to child care

benefit

Amount of the child care tax offset

61-485

Amount of the child care tax offset

61-490

Component of formula--approved child care fees

61-495

Component of formula--child care offset limit

Transfer of entitlement to unused balance of child care tax offset

61-496

Entitlement to transfer

61-497

Form of transfer

Operative provisions

61-465 Object of this Subdivision

The object of this Subdivision is to provide a

tax offset to assist

families with the cost of child care.

Entitlement to the child care tax offset

61-470 Who is entitled to the tax offset

(1) You are entitled to a

tax offset for an income year (the child care

offset year) for

approved child care provided in the previous

income year (the child care base year) if:

(a) you are an individual; and

(b) there is at least 1

child care base week for you and a

particular child in the child care base year.

Example: If there is at least 1 child care base week for you and a child in the

2004-2005 income year (the child care base year), you are entitled to a

tax offset for the child for the 2005-2006 income year (the child care

offset year).

(2) A week is a child care base week for you and a particular child in

the child care base year if:

(a) the week starts on a Monday in the child care base year

(whether or not it finishes in the child care base year); and

Child care tax offset Schedule 1

Main amendments Part 1

Tax Laws Amendment (2005 Measures No. 4) Bill 2005 No. , 2005 5

(b) you are

entitled to child care benefit for

approved child care

provided for the child in the week; and

G of Division 4 of Part 3 of the A New Tax System (Family

Assistance) Act 1999 to your

entitlement to child care

benefit for that week:

(i) the 50 hour limit (see section 54 of that Act);

(ii) the more than 50 hour limit (see section 55 of that Act);

(iii) the 24 hour care limit for a particular session (or

sessions) of care (see section 56 of that Act).

Note:

If one of the paragraph (c) limits applies, you satisfy the paragraph (c)

condition even if you have not used approved child care for the child

during the week up to the full extent of the limit.

(3) If you are

entitled to child care benefit subject to a limit of only 20

hours for a week under subsection 53(3) of the A New Tax System

(Family Assistance) Act 1999, the condition mentioned in

paragraph (2)(c) is not satisfied for the week.

61-475 Meaning of approved child care

(1) Approved child care, for a particular child, is care provided for the

child by a child care service that is approved under section 195 of

the A New Tax System (Family Assistance) (Administration) Act

1999.

(2) Approved child care is also taken to have been provided by such a

child care service for the child during a period of absence from

care if section 10 or 10A of the A New Tax System (Family

Assistance) Act 1999 applies to the period of absence.

Note:

If a child is absent from care during a period for which child care fees

are incurred for the child, but neither of sections 10 or 10A of the A

New Tax System (Family Assistance) Act 1999 apply to the period of

absence, approved child care would not be taken to have been

provided for the child. As a result, child care fees incurred for the

child during the period would not count as approved child care fees

for which the child care tax offset is payable (see sections 61-485 and

61-490).

Schedule 1 Child care tax offset

Part 1 Main amendments

6 Tax Laws Amendment (2005 Measures No. 4) Bill 2005 No. , 2005

61-480 Meaning of entitled to child care benefit and entitlement to

child care benefit

(1) You are entitled to child care benefit for

approved child care for a

child as provided in this section, and not otherwise. The amount of

your entitlement to child care benefit for the care is as provided in

this section, and not otherwise.

Note:

Child care benefit is a benefit provided for by the A New Tax System

(Family Assistance) Act 1999.

General rule--actual determination of entitlement must have been

made

(2) You are only entitled to child care benefit for the care if you are so

entitled because of a determination made under section 51B or 52E

of the A New Tax System (Family Assistance) (Administration) Act

1999. The amount of your entitlement to child care benefit for the

care is the amount worked out under that Act by reference to that

determination.

Entitlement based on fee reductions under a determination of

conditional entitlement

(3) However, if:

(a) a determination (the conditional determination) has been

made under section 50F of the A New Tax System (Family

Assistance) (Administration) Act 1999 that you are

conditionally eligible for child care benefit by fee reduction

for the care; and

(b) under section 219A of that Act as it applies in relation to the

determination, fees for the care have been reduced;

you are, subject to subsections (4) and (5), taken to be entitled to

child care benefit for the care. The amount of your entitlement to

child care benefit for the care is the amount of the reduction.

(4) Despite subsection (3), if:

(a) a determination (the final determination) is subsequently

made under section 51B of the A New Tax System (Family

Assistance) (Administration) Act 1999 of your entitlement to

be paid child care benefit by fee reduction for the care; and

(b) the amount (the final determination amount) of your

entitlement to child care benefit for the care, as worked out

Child care tax offset Schedule 1

Main amendments Part 1

Tax Laws Amendment (2005 Measures No. 4) Bill 2005 No. , 2005 7

by reference to the final determination, differs from the

amount of the reduction referred to in paragraph (3)(b);

the amount of your entitlement to child care benefit for the care is

taken to be, and always to have been, the final determination

amount.

(5) Despite subsection (3), if a determination is subsequently made

under section 51C of the A New Tax System (Family Assistance)

(Administration) Act 1999 that you are not entitled to be paid child

care benefit by fee reduction for the care, you are taken not to be,

and never to have been, entitled to be paid any child care benefit

for the care.

Entitlement does not end with receipt

(6) In applying this Act at a particular time in relation to yourself and

the care, the fact that you have, by that time, received some or all

of your entitlement to child care benefit for the care does not mean

that you are no longer to be regarded as being entitled to child care

benefit for the care.

Later determinations, variations and substitutions to be taken into

account

(7) If, after applying this Act at a particular time in relation to yourself

and the care, a determination mentioned in this section is made or

varied, or is set aside and a new determination substituted, the

question of your entitlement to child care benefit for the care is to

be redetermined taking account of the making, variation or

substitution.

Amount of the child care tax offset

61-485 Amount of the child care tax offset

The amount of your

tax offset for a child care offset year is

worked out in this way:

Method statement

Schedule 1 Child care tax offset

Part 1 Main amendments

8 Tax Laws Amendment (2005 Measures No. 4) Bill 2005 No. , 2005

Step 1.

For each child in relation to whom you are entitled to the

tax offset for the child care offset year, work out

amounts in accordance with steps 2, 3 and 4.

Step 2.

Work out the total amount of your

approved child care

fees for the child in each

child care base week for you

and the child in the child care base year.

Step 3.

Work out the total amount of your

entitlement to child

care benefit for

approved child care for the child in each

child care base week for you and the child in the child

care base year.

Step 4.

Work out the lesser of the following amounts (the child

offset) for the child:

(a)

the amount worked out using the formula:

30%

Step 2 amount

Step 3 amount

(b)

the

child care offset limit for the child care base

year.

Step 5.

Total the child offsets for each of those children. The

result is the amount of your

tax offset for the child care

offset year.

61-490 Component of formula--approved child care fees

General rule--approved child care fees for a child care base week

for you and a child

(1) The amount of your approved child care fees for a child for a

child care base week for you and the child is the amount of fees

for

approved child care for the child during the week that are

incurred by:

(a) you; or

(b) your partner, within the meaning of the A New Tax System

(Family Assistance) Act 1999, during the week.

Child care tax offset Schedule 1

Main amendments Part 1

Tax Laws Amendment (2005 Measures No. 4) Bill 2005 No. , 2005 9

Subject to subsection (2), it does not matter whether you are

entitled to child care benefit for all of that care.

Special rule if the week is also a child care base week for your

partner and the child

(2) If the

child care base week is also a child care base week for your

partner and the child, your approved child care fees for the week

do not include any fees incurred by your partner for

approved

child care, for the child in the week, for which you are not

entitled

to child care benefit.

If fee reduction applies, count unreduced amount of fees

(3) If fees for

approved child care have been reduced under

section 219A of the A New Tax System (Family Assistance)

(Administration) Act 1999, then for this section, a reference to the

fees incurred for the care is taken to be a reference to the fees that

would have been incurred for the care if they had not been so

reduced.

61-495 Component of formula--child care offset limit

(1) The child care offset limit for the 2004-2005 child care base year

is $4,000. The limit is indexed annually.

Note:

Subdivision 960-M shows you how to index amounts.

(2) In applying the indexation formula in subsection 960-275(1) to

determine the child care offset limit for the 2005-2006 child care

base year or a later child care base year, the relevant financial year

is the child care base year rather than the child care offset year for

which the offset is being calculated.

Transfer of entitlement to unused balance of child care tax

offset

61-496 Entitlement to transfer

(1) This section applies if the amount of

tax offset for a child care

offset year to which you are entitled under section 61-470 exceeds

the amount of income tax that you would have to pay for the year

if:

Schedule 1 Child care tax offset

Part 1 Main amendments

10 Tax Laws Amendment (2005 Measures No. 4) Bill 2005 No. , 2005

(a) you had not got the tax offset; and

(b) you had not got any tax offsets that are of a higher priority

under subsection 65-25(2).

(2) You may transfer your entitlement to so much of the

tax offset as

is equal to the excess to an individual who was your

spouse on the

last day of the child care offset year, subject to subsection (5).

(3) If you make a transfer:

(a) the transferee is entitled to so much of the

tax offset for the

child care offset year as is equal to the excess; and

(b) you are no longer entitled to so much of the tax offset as is

equal to the excess.

(4) A transfer cannot be revoked.

(5) If you die during the child care offset year, the reference to your

spouse in subsection (2) is taken to be a reference to your spouse

just before your death.

61-497 Form of transfer

(1) A transfer has effect only if it is in the

approved form.

(2) The

approved form must require the inclusion of:

(a) your

tax file number; and

(b) the tax file number of the transferee; and

(i) the transfer; and

(ii) the disclosure of his or her tax file number in the form.

(3) Subsection (2) does not limit what may be required by the

approved form.

3 Subsection 65-25(2) (after table item 2)

Insert:

child care tax offset

Subdivision 61-IA

4 Section 960-265 (at the end of the table)

Add:

child care offset limit

section 61-495

Child care tax offset Schedule 1

Main amendments Part 1

Tax Laws Amendment (2005 Measures No. 4) Bill 2005 No. , 2005 11

5 Subsection 995-1(1)

Insert:

approved child care has the meaning given by section 61-475.

6 Subsection 995-1(1)

Insert:

approved child care fees has the meaning given by section 61-490.

7 Subsection 995-1(1)

Insert:

child care base week has the meaning given by section 61-470.

8 Subsection 995-1(1)

Insert:

child care offset limit has the meaning given by section 61-495.

9 Subsection 995-1(1)

Insert:

entitled to child care benefit has the meaning given by

section 61-480.

10 Subsection 995-1(1)

Insert:

entitlement to child care benefit has the meaning given by

section 61-480.

Schedule 1 Child care tax offset

Part 2 Consequential amendments

12 Tax Laws Amendment (2005 Measures No. 4) Bill 2005 No. , 2005

Part 2--Consequential amendments

A New Tax System (Family Assistance) (Administration) Act

1999

11 After section 169

Insert:

169A Disclosure of information--child care tax offset

(1) The Secretary may, for the purposes of the administration of the

child care tax offset provided by Subdivision 61-IA of the Income

Tax Assessment Act 1997, give the Commissioner of Taxation

information about people, including their tax file numbers,

acquired by an officer in the exercise of the officer's powers, or the

performance of the officer's duties or functions, under the family

assistance law.

(2) Information (including tax file numbers) given to the

Commissioner of Taxation under subsection (1) may be used only

for the purposes of the administration of the child care tax offset

provided by Subdivision 61-IA of the Income Tax Assessment Act

1997.

(3) This section does not limit the powers of the Secretary under

section 168.

Taxation Administration Act 1953

12 Section 45-340 in Schedule 1 (method statement, step 1)

Repeal the step, substitute:

Step 1.

The income tax payable on your

adjusted taxable

income, or on your

adjusted withholding income, for the

base year is worked out disregarding any

tax offset

under:

Child care tax offset Schedule 1

Consequential amendments Part 2

Tax Laws Amendment (2005 Measures No. 4) Bill 2005 No. , 2005 13

(a)

Subdivision 61-H of the Income Tax Assessment

Act 1997 (the private health insurance tax offset);

(b)

Subdivision 61-IA of the Income Tax Assessment

Act 1997 (the child care tax offset); or

(c)

Subdivision 61-J of the Income Tax Assessment

Act 1997 (the 25% entrepreneurs' tax offset); or

(d)

Subdivision 61-K of the Income Tax Assessment

Act 1997 (the mature age worker tax offset); or

(e)

section 205-70 of the Income Tax Assessment Act

1997 (the tax offset for

franking deficit tax

liabilities); or

(f)

section 159N of the Income Tax Assessment Act

1936 (the tax offset for certain low income

earners); or

(g)

section 159T of the Income Tax Assessment Act

1936 (the tax offset for superannuation

contributions made for a spouse).

13 Section 45-375 in Schedule 1 (method statement, step 1)

Repeal the step, substitute:

Step 1.

The income tax payable on your

adjusted assessed

taxable income for the variation year is worked out

disregarding any

tax offset under:

(a)

Subdivision 61-H of the Income Tax Assessment

Act 1997 (the private health insurance tax offset);

(b)

Subdivision 61-IA of the Income Tax Assessment

Act 1997 (the child care tax offset); or

(c)

Subdivision 61-K of the Income Tax Assessment

Act 1997 (the mature age worker tax offset); or

Schedule 1 Child care tax offset

Part 2 Consequential amendments

14 Tax Laws Amendment (2005 Measures No. 4) Bill 2005 No. , 2005

(d)

section 205-70 of the Income Tax Assessment Act

1997 (the tax offset for

franking deficit tax

liabilities); or

(e)

section 159N of the Income Tax Assessment Act

1936 (the tax offset for certain low income

earners); or

(f)

section 159T of the Income Tax Assessment Act

1936 (the tax offset for superannuation

contributions made for a spouse).

Child care tax offset Schedule 1

Application Part 3

Tax Laws Amendment (2005 Measures No. 4) Bill 2005 No. , 2005 15

Part 3--Application

14 Application of certain amendments

(1)

The amendments made by items 1 to 10 of this Schedule apply in

relation to assessments for income years that start on or after 1 July

2005.

(2)

The amendment made by item 12 of this Schedule applies in relation to

the calculation of an entity's adjusted tax for base years that are income

years starting on or after 1 July 2005.

(3)

The amendment made by item 13 of this Schedule applies in relation to

the calculation of an entity's adjusted assessed tax for variation years

that are income years starting on or after 1 July 2005.

Schedule 2 Deductible gift recipients

16 Tax Laws Amendment (2005 Measures No. 4) Bill 2005 No. , 2005

Schedule 2--Deductible gift recipients

Income Tax Assessment Act 1997

1 Subsection 30-40(2) (at the end of the table)

Add:

3.2.8

The Chifley Research Centre Limited

the gift must be made

after 19 May 2005

2 Subsection 30-45(2) (at the end of the table)

Add:

4.2.31

Crime Stoppers Northern Territory Program

the gift must be made

after 13 March 2005

3 Subsection 30-70(2) (at the end of the table)

Add:

8.2.4

Playgroup NSW (Inc).

the gift must be made

after 14 April 2005

8.2.5

Playgroup WA (Inc)

the gift must be made

after 13 March 2005

8.2.6

Playgroup Queensland Incorporated

the gift must be made

after 14 April 2005

8.2.7

Playgroup Tasmania Inc.

the gift must be made

after 14 April 2005

8.2.8

Playgroup Association Northern Territory

Incorporated

the gift must be made

after 24 May 2005

8.2.9

ACT Playgroups Association Incorporated

the gift must be made

after 14 April 2005

4 Section 30-95 (table item 11.2.3)

Repeal the item.

5 Section 30-105 (at the end of the table)

Add:

13.2.10

The Rotary Club of Katoomba Inc--Convict

Roadbuilders & Pioneer Memorial Wall

Fund

the gift must be made

after 24 May 2005 and

before 25 May 2006

Deductible gift recipients Schedule 2

Tax Laws Amendment (2005 Measures No. 4) Bill 2005 No. , 2005 17

6 Subsection 30-315(2) (after table item 2AA)

Insert:

2AAA

ACT Playgroups Association

Incorporated

item 8.2.9

7 Subsection 30-315(2) (after table item 30A)

Insert:

30B

Chifley Research Centre Limited

item 3.2.8

8 Subsection 30-315(2) (after table item 40B)

Insert:

40C

Crime Stoppers Northern Territory

Program

item 4.2.31

9 Subsection 30-315(2) (table item 55)

Repeal the item.

10 Subsection 30-315(2) (after table item 86)

Insert:

86A

Playgroup Association Northern

Territory Incorporated

item 8.2.8

86B

Playgroup NSW (Inc)

item 8.2.4

86C

Playgroup Queensland Incorporated

item 8.2.6

86D

Playgroup Tasmania Inc

item 8.2.7

86E

Playgroup WA (Inc)

item 8.2.5

11 Subsection 30-315(2) (after table item 97)

Insert:

97AAAA

Rotary Club of Katoomba Inc--

Convict Roadbuilders & Pioneer

Memorial Wall Fund

item 13.2.10

12 Application

The amendment made by item 4 applies in relation to gifts made on or

after 20 May 2005.

Schedule 3 Secrecy provisions

18 Tax Laws Amendment (2005 Measures No. 4) Bill 2005 No. , 2005

Schedule 3--Secrecy provisions

Income Tax Assessment Act 1936

1 Paragraph 16(4)(ga)

Repeal the paragraph, substitute:

(ga) the Australian Statistician for the purposes of the Census and

Statistics Act 1905, being the following kind of information

about a person who is an employer (whether or not the

person is also a business person):

(i) the name and address of the person;

(ii) the name or description of the industry, trade, business,

calling, service, profession or occupation in which the

person is an employer;

(iii) the number of males and the number of females who are

employees of the person;

(gb) the Australian Statistician for the purposes of the Census and

Statistics Act 1905, being the following kind of information

about a person who is a business person (whether or not the

person is also an employer):

(i) the name and address of the person;

(ii) the name or description of the business;

(iii) such other information in relation to the business as is

requested by the Australian Statistician;

2 Subsection 16(4AA)

Omit "paragraph (4)(ga)", substitute "paragraphs (4)(ga) and (gb)".

3 Application

The amendments made by this Schedule apply to communications of

information after the day on which this item commences (regardless of

whether the information was acquired before or after that

commencement).

Wine equalisation tax Schedule 4

Main amendments Part 1

Tax Laws Amendment (2005 Measures No. 4) Bill 2005 No. , 2005 19

Schedule 4--Wine equalisation tax

Part 1--Main amendments

A New Tax System (Wine Equalisation Tax) Act 1999

1 Section 17-5 (table item CR9)

Repeal the item, substitute:

CR9

Producer rebate An

assessable

dealing is made

in circumstances

that entitle you

to a producer

rebate under

Division 19.

the amount of

the producer

rebate under

Division 19

immediately

before the end of

the financial

year in which

the assessable

dealing occurs

2 Subsection 17-10(1)

After "a

wine tax credit", insert "(other than a claim for a

producer

rebate under subsection 19-5(2))".

3 Subsection 17-10(2)

After "a

wine tax credit", insert "(other than a claim for a

producer

rebate under subsection 19-5(2))".

4 After subsection 17-10(2)

Insert:

(2A) If you are a

New Zealand participant, you may make a claim for a

wine tax credit under subsection 19-5(2) in the

approved form.

The claim must be accompanied by such supporting evidence as

the Commissioner requires.

(2B) The Commissioner may determine, by legislative instrument, the

time or times during which claims for

wine tax credits under

subsection 19-5(2) may be made.

5 Subsection 17-10(3)

After "subsection 17-10(2)", insert "or (2A)".

Schedule 4 Wine equalisation tax

Part 1 Main amendments

20 Tax Laws Amendment (2005 Measures No. 4) Bill 2005 No. , 2005

6 Section 17-15

After "subsection 17-10(2)", insert "or (2A)".

7 Section 17-20

After "subsection 17-10(2)", insert "or (2A)".

8 Section 19-5

Before "You are entitled", insert "(1)".

9 At the end of section 19-5

Add:

(2) You are entitled to a

producer rebate for

rebatable wine for a

financial year if:

(a) you are approved as a

New Zealand participant; and

(b) the wine was

produced by you in

New Zealand and

exported to

Australia; and

taxable dealing in

the wine during the financial year.

10 After section 19-5

Insert:

19-7 Approval as New Zealand participant

(1) You may apply, in writing, in the

approved form, to the

Commissioner for approval as a

New Zealand participant.

(2) You are eligible to be approved as a

New Zealand participant if

the Commissioner is satisfied, on the basis of your application and

any other relevant information of which the Commissioner

becomes aware, that:

(a) you are a

producer of

rebatable wine in

New Zealand; and

(b) the rebatable wine has been, or is likely to be, exported to

Australia.

(3) If the Commissioner, after consideration of your application, is

satisfied of the matters referred to in subsection (2) in relation to

you, the Commissioner must, by written instrument, approve you

as a

New Zealand participant.

Wine equalisation tax Schedule 4

Main amendments Part 1

Tax Laws Amendment (2005 Measures No. 4) Bill 2005 No. , 2005 21

(4) The Commissioner must decide the date of effect of that approval

and include that date in the instrument of approval. That date may

be the day of the decision, or a day before or after that day.

Note:

Deciding under this subsection the date of effect of any approval of an

entity as a New Zealand participant is a reviewable wine tax decision

(see Division 7 of Part VI of the Taxation Administration Act 1953

(5) If the Commissioner approves you as a

New Zealand participant,

the Commissioner must, by notice in writing sent to you, inform

you that you have been so approved and of the date from which the

approval has effect.

(6) If the Commissioner, after consideration of your application, is not

satisfied of the matters referred to in subsection (2) in relation to

you, the Commissioner must:

(a) by written instrument, refuse to approve you as a

New

Zealand participant; and

(b) by notice in writing sent to you, inform you that the

Commissioner has so decided and of the reasons for that

decision.

Note:

Refusing to approve an entity as a New Zealand participant is a

reviewable wine tax decision (see Division 7 of Part VI of the

Taxation Administration Act 1953)

(7) An instrument of approval under subsection (3) and an instrument

refusing approval under subsection (6) are not legislative

instruments.

19-8 Revoking an approval as a New Zealand participant

(1) If, at any time, the Commissioner becomes aware that you cease to

satisfy the criteria for approval as a

New Zealand participant, the

Commissioner must, by written instrument, revoke your approval.

Note:

Revoking under this subsection the approval of an entity as a New

Zealand participant is a reviewable wine tax decision (see Division 7

of Part VI of the Taxation Administration Act 1953).

(2) The Commissioner must decide the date of effect of that revocation

and include that date in the instrument of revocation. That date

may be the day of the decision, or a day before or after that day.

Note:

Deciding under this subsection the date of effect of any revocation of

an approval as a New Zealand participant is a reviewable wine tax

decision (see Division 7 of Part VI of the Taxation Administration Act

1953

Schedule 4 Wine equalisation tax

Part 1 Main amendments

22 Tax Laws Amendment (2005 Measures No. 4) Bill 2005 No. , 2005

(3) If the Commissioner revokes your approval as a

New Zealand

participant, the Commissioner must, by notice in writing sent to

you, inform you that the Commissioner has revoked your approval,

indicate the date from which the revocation has effect and of the

reasons for revoking that approval.

(4) An instrument of revocation under subsection (1) is not a

legislative instrument.

19-9 Notification of changed circumstances

(1) An entity approved as a

New Zealand participant must notify the

Commissioner in writing of any circumstances under which the

Commissioner must revoke the approval. The notification must be

given to the Commissioner within 21 days after the circumstances

occurred.

(2) A notification under subsection (1) is not a legislative instrument.

11 Subsection 19-10(1)

Omit "for a dealing in wine because of paragraph 19-5(b)", substitute

"because of paragraph 19-5(1)(b) for a dealing in wine".

12 Subsection 19-10(2)

After "

producer rebate", insert "because of subsection 19-5(1)".

13 At the end of section 19-10

Add:

(3) You are not entitled to a

producer rebate because of subsection

19-5(2) for a dealing in wine

produced in

New Zealand if:

(a) the wine is exported from

Australia after that dealing; and

(b) at the time of a claim for producer rebate in respect of that

wine you were, or should reasonably have been, aware that

the wine had been, or would be, so exported.

(4) You are not entitled to a

producer rebate because of subsection

19-5(2) for a dealing in wine

produced in

New Zealand if a

producer rebate has previously been paid in respect of the wine.

14 Subsection 19-15(1)

After "you are entitled", insert "because of subsection 19-5(1)".

Wine equalisation tax Schedule 4

Main amendments Part 1

Tax Laws Amendment (2005 Measures No. 4) Bill 2005 No. , 2005 23

15 After subsection 19-15(1)

Insert:

(1A) The amount of the

producer rebates to which you are entitled

because of subsection 19-5(2) for the wine for the

financial year is

an amount equal to 29% of the approved selling price for the wine.

(1B) In working out the amount of the

producer rebate to which you are

entitled because of subsection 19-5(2), any component used to

determine the approved selling price that is expressed in a currency

other than Australian currency is to be treated as if it were an

amount of Australian currency worked out in the manner

determined, by legislative instrument, by the Commissioner.

(1C) In this section:

approved selling price, in relation to wine sold by a

New Zealand

participant, means the participant's selling price for the wine net of

any expenses unrelated to the production of the wine in

New

Zealand, including but not limited to:

(a) expenses relating to transportation, freight and insurance,

agent's fees and any other costs associated with exportation

of the wine from New Zealand and importation of the wine

into

Australia; and

(b) New Zealand and Australian taxes including customs duties.

16 Subsection 19-15(2)

After "a

financial year", insert "under this Division".

17 Subsection 19-15(3)

After "the financial year", insert "under this Division".

18 Subsection 19-25(1)

After "claim", insert "because of subsection 19-5(1)".

19 After subsection 19-25(1)

Insert:

(1A) If the sum of the amounts of

producer rebates that you claim

because of subsection 19-5(2) for the

financial year exceeds the

amount of the producer rebates to which you are entitled in respect

Schedule 4 Wine equalisation tax

Part 1 Main amendments

24 Tax Laws Amendment (2005 Measures No. 4) Bill 2005 No. , 2005

of that financial year, you are liable to pay an amount equal to that

excess.

20 Subsection 19-25(2)

After "the financial year", insert "under this Division".

21 Subsection 19-25(4)

After "

financial year, and,", insert "except in the case of a

New

Zealand participant,".

22 At the end of section 19-25

Add:

(5) For the purposes of the application of Part VI of the Taxation

Administration Act 1953, a

producer rebate under subsection

19-5(2) is to be treated as a net amount.

23 Section 33-1

Insert:

New Zealand means the territory of New Zealand but does not

include Tokelau or the Associated Self Governing States of the

Cook Islands and Niue.

24 Section 33-1

Insert:

New Zealand participant means an entity that is approved as a

New Zealand participant under section 19-7.

25 Application

The amendment made by item 9 of this Schedule applies only to wine

on which wine tax has been paid for a taxable dealing during the

financial year starting on 1 July 2005 or on a subsequent 1 July.

Wine equalisation tax Schedule 4

Consequential amendments Part 2

Tax Laws Amendment (2005 Measures No. 4) Bill 2005 No. , 2005 25

Part 2--Consequential amendments

Taxation Administration Act 1953

26 Subsection 62(2A)

Repeal the subsection, substitute:

(2A) Each of the following decisions is a reviewable wine tax decision

under the Wine Tax Act:

Reviewable wine tax decisions

Item

Decision

Provision of

this Part under

which decision

is made

disallowing the whole or a part of your claim for

a wine tax credit

section 17-45

deciding the date of effect of your approval as a

New Zealand participant

section 19-7

refusing to approve you as a New Zealand

participant

section 19-7

revoking your approval as a New Zealand

participant

section 19-8

deciding the date of effect of revocation of your

approval as a New Zealand participant

section 19-8

27 Transitional provision

If:

(a) an application has been made for the review of a decision that

was a reviewable wine tax decision within the meaning of

subsection 62(2A) of the Taxation Administration Act 1953

as in force immediately before the repeal of that subsection;

and

(b) that review has not been completed before the day of that

repeal;

Commonwealth of Australia Bills

TAX LAWS AMENDMENT (2005 MEASURES NO. 4) BILL 2005