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This is a Bill, not an Act. For current law, see the Acts databases.
TAX LAWS AMENDMENT (2005 MEASURES NO. 6) BILL 2005
2004-2005
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Tax Laws Amendment (2005 Measures
No. 6) Bill 2005
No. , 2005
(Treasury)
A Bill for an Act to amend the law relating to
taxation, and for related purposes
Tax Laws Amendment (2005 Measures No. 6) Bill 2005 No. , 2005 ii
Contents
1 Short
title ...........................................................................................1
2 Commencement.................................................................................1
3 Schedule(s) ........................................................................................2
Schedule 1--Consolidation: available fraction for loss
utilisation purposes
3
Income Tax Assessment Act 1997
3
Schedule 2--Extension of mutuality principle
4
Income Tax Assessment Act 1997
4
Schedule 3--Child care tax offset
5
Income Tax Assessment Act 1997
5
Schedule 4--Medical expenses offset
6
Income Tax Assessment Act 1936
6
Schedule 5--Specific gift recipients
8
Income Tax Assessment Act 1997
8
Tax Laws Amendment (2005 Measures No. 6) Bill 2005 No. , 2005 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 Laws Amendment (2005
5
Measures No. 6) Act 2005.
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 Laws Amendment (2005 Measures No. 6) 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. Schedule 1
The day on which this Act receives the
Royal Assent.
3. Schedule 2
The day on which this Act receives the
Royal Assent.
4. Schedule 3
The later of:
(a) the start of the day on which this Act
receives the Royal Assent; and
(b) immediately after the commencement of
the Family and Community Services
Legislation Amendment (Welfare to
Work) Act 2005.
However, the provision(s) do not commence
at all if the event mentioned in paragraph (b)
does not occur.
5. Schedule 4
The day on which this Act receives the
Royal Assent.
6. Schedule 5
The day on which this Act receives the
Royal Assent.
Note:
This table relates only to the provisions of this Act as originally
1
passed by the Parliament and assented to. It will not be expanded to
2
deal with provisions inserted in this Act after assent.
3
(2) Column 3 of the table contains additional information that is not
4
part of this Act. Information in this column may be added to or
5
edited in any published version of this Act.
6
3 Schedule(s)
7
Each Act 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
Consolidation: available fraction for loss utilisation purposes Schedule 1
Tax Laws Amendment (2005 Measures No. 6) Bill 2005 No. , 2005 3
1
Schedule 1--Consolidation: available fraction
2
for loss utilisation purposes
3
4
Income Tax Assessment Act 1997
5
1 Subsection 707-320(4)
6
Repeal the subsection, substitute:
7
(4)
For
a
*
bundle of losses:
8
(a) subject to paragraph (b)--the available fraction is worked
9
out to 3 decimal places, rounding up if the fourth decimal
10
place is 5 or more; or
11
(b) if the available fraction worked out under paragraph (a) is
12
0.000 and, if it were worked out to more decimal places, it
13
would include one or more non-zero digits--the available
14
fraction is worked out to the number of decimal places that
15
includes the first or only such digit, rounding up if the next
16
decimal place is 5 or more.
17
Examples:
For 0.000328, the available fraction is 0.0003. For
18
0.000086, the available fraction is 0.00009.
19
(4A) Subsections (1) and (2) have effect subject to subsection (4).
20
2 Application
21
The amendment made by this Schedule applies on and after 1 July
22
2002.
23
Schedule 2 Extension of mutuality principle
4 Tax Laws Amendment (2005 Measures No. 6) Bill 2005 No. , 2005
1
Schedule 2--Extension of mutuality principle
2
3
Income Tax Assessment Act 1997
4
1 Section 11-55 (after table item headed "mining")
5
Insert:
6
mutual receipts
amounts that would be mutual receipts but for prohibition
on distributions to members.............................................
59-35
2 At the end of subsection 25-75(1) (before the note)
7
Add:
8
; or (e) for the purpose of producing amounts to which section 59-35
9
applies (amounts that would be mutual receipts but for
10
prohibition on distributions to members); or
11
(f) in carrying on a
*
business for the purpose of producing
12
amounts to which section 59-35 applies.
13
3 At the end of Division 59
14
Add:
15
59-35 Amounts that would be mutual receipts but for prohibition on
16
distributions to members
17
An amount of
*
ordinary income of an entity is not assessable
18
income and not
*
exempt income if:
19
(a) the amount would be a mutual receipt, but for the entity's
20
constituent document preventing the entity from making any
21
*
distribution, whether in money, property or otherwise, to its
22
members; and
23
(b) apart from this section, the amount would be assessable
24
income only because of section 6-5.
25
4 Application
26
The amendments made by this Schedule apply in relation to income
27
years commencing on or after 1 July 2000.
28
Child care tax offset Schedule 3
Tax Laws Amendment (2005 Measures No. 6) Bill 2005 No. , 2005 5
1
Schedule 3--Child care tax offset
2
3
Income Tax Assessment Act 1997
4
1 Subsection 61-470(3)
5
Omit "20", substitute "24".
6
2 At the end of section 61-470
7
Add:
8
(4) The 50 hour limit is taken, for the purposes of paragraph (2)(c), to
9
apply to your entitlement for child care benefit for the week if it
10
would have applied but for the fact that you failed to meet the
11
requirements of paragraph 17A(1)(b) of the A New Tax System
12
(Family Assistance) Act 1999 in relation to the week.
13
3 Application
14
The amendments made by this Schedule apply in relation to
15
assessments for income years that start on or after 1 July 2007.
16
Schedule 4 Medical expenses offset
6 Tax Laws Amendment (2005 Measures No. 6) Bill 2005 No. , 2005
1
Schedule 4--Medical expenses offset
2
3
Income Tax Assessment Act 1936
4
1 Subsection 159P(1)
5
After "himself", insert "or herself".
6
2 Subsection 159P(4)
7
Insert:
8
ineligible medical expenses means payments:
9
(a) to a legally qualified medical practitioner, nurse or chemist,
10
or a public or private hospital, in respect of a cosmetic
11
operation that is not a professional service for which a
12
medicare benefit is payable under Part II of the Health
13
Insurance Act 1973; or
14
(b) to a legally qualified dentist for:
15
(i) dental services; or
16
(ii)
treatment;
17
that is solely cosmetic.
18
3 Subsection 159P(4) (at the end of paragraphs (a) to (f) of
19
the definition of medical expenses)
20
Add "or".
21
4 Subsection 159P(4) (at the end of subparagraph (g)(ii) of
22
the definition of medical expenses)
23
Add "or".
24
5 Subsection 159P(4) (paragraph (i) of the definition of
25
medical expenses)
26
Repeal the paragraph, substitute:
27
(i) for the maintenance of a dog used for the guidance or
28
assistance of, but not social therapy for, a person with a
29
disability, being a dog that the Commissioner is satisfied is
30
properly trained in the guidance or assistance of persons with
31
disabilities;
32
Medical expenses offset Schedule 4
Tax Laws Amendment (2005 Measures No. 6) Bill 2005 No. , 2005 7
but does not include ineligible medical expenses.
1
6 Subsection 159P(4)
2
Insert:
3
professional service has the meaning given by subsection 3(1) of
4
the Health Insurance Act 1973.
5
7 Subsection 159P(5)
6
Omit "paragraph (a) of the definition of medical expenses", substitute
7
"the definitions of ineligible medical expenses and medical expenses".
8
8 Subsection 159P(6)
9
Omit "paragraph (b) of the definition of medical expenses", substitute
10
"the definitions of ineligible medical expenses and medical expenses".
11
9 Application
12
The amendments made by this Schedule apply to assessments for the
13
2005-06 year of income and later years of income.
14
Schedule 5 Specific gift recipients
8 Tax Laws Amendment (2005 Measures No. 6) Bill 2005 No. , 2005
1
Schedule 5--Specific gift recipients
2
3
Income Tax Assessment Act 1997
4
1 Subsection 30-25(2) (at the end of the table)
5
Add:
6
2.2.33
International Specialised Skills Institute
Incorporated
the gift must be made
after 11 August 2005
2.2.34 Yachad
Accelerated Learning Project
Limited
the gift must be made
after 29 June 2005 and
before 1 July 2006
2 Subsection 30-50(2) (table item 5.2.24)
7
Omit "25 April 2005", substitute "1 July 2005".
8
3 Subsection 30-50(2) (at the end of the table)
9
Add:
10
5.2.26
C E W Bean Foundation
the gift must be made
after 14 November 2005
and before 15 November
2007
5.2.27
The Vietnam War Memorial of Victoria
Incorporated
the gift must be made
after 31 December 2004
and before 1 January
2006
4 Subsection 30-80(2) (at the end of the table)
11
Add:
12
9.2.15
Australian Red Cross Society--US 2005
Hurricane Relief Appeal
the gift must be made
after 31 August 2005 and
before 1 September 2006
9.2.16
The Salvation Army Hurricane Katrina
Relief Appeal
the gift must be made
after 1 September 2005
and before 2 September
2006
9.2.17
Xanana Vocational Education Trust
the gift must be made
after 20 July 2005 and
before 21 July 2007
Specific gift recipients Schedule 5
Tax Laws Amendment (2005 Measures No. 6) Bill 2005 No. , 2005 9
5 Section 30-315 (after table item 25B)
1
Insert:
2
25C
Australian Red Cross Society--US 2005
Hurricane Relief Appeal
item 9.2.15
6 Section 30-315 (after table item 30)
3
Insert:
4
30AA
C E W Bean Foundation
item 5.2.26
7 Section 30-315 (after table item 63A)
5
Insert:
6
63B
International Specialised Skills Institute
Incorporated
item 2.2.33
8 Section 30-315 (after table item 105A)
7
Insert:
8
105B
Salvation Army Hurricane Katrina
Relief Appeal
item 9.2.16
9 Section 30-315 (after table item 121B)
9
Insert:
10
121C
Vietnam War Memorial of Victoria
Incorporated
item 5.2.27
10 Section 30-315 (after table item 127)
11
Insert:
12
127A
Xanana Vocational Education Trust
item 9.2.17
127B Yachad
Accelerated Learning Project
Limited
item 2.2.34
13