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This is a Bill, not an Act. For current law, see the Acts databases.
TAX LAWS AMENDMENT (2008 MEASURES NO. 1) BILL 2008
2008
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Tax Laws Amendment (2008 Measures
No. 1) Bill 2008
No. , 2008
(Treasury)
A Bill for an Act to amend the law relating to
taxation, and for related purposes
i Tax Laws Amendment (2008 Measures No. 1) Bill 2008 No. , 2008
Contents
1
Short title ............................................................................................ 1
2
Commencement .................................................................................. 1
3
Schedule(s) ......................................................................................... 2
Schedule 1--Political contributions and gifts
3
Income Tax Assessment Act 1936
3
Income Tax Assessment Act 1997
3
Schedule 2--Superannuation lump sum paid to a me mber
having a terminal medical condition
6
Part 1--Amendments
6
Income Tax Assessment Act 1997
6
Income Tax (Transitional Provisions) Act 1997
7
Part 2--Application
8
Schedule 3--Capital expenditure for the establishme nt of trees
in carbon sink forests
9
Part 1--Income years 2007-08 to 2011-12
9
Income Tax Assessment Act 1997
9
Part 2--Income year 2012-13 and later income years
16
Income Tax Assessment Act 1997
16
Schedule 4--Tax offset for Equine Workers Hardship Wage
Suppleme nt Payments
21
Income Tax Assessment Act 1936
21
Income Tax Assessment Act 1997
21
Schedule 5--Tobacco industry exit grants
22
Income Tax Assessment Act 1997
22
Schedule 6--Farm management deposits
23
Income Tax Assessment Act 1936
23
Tax Laws Amendment (2008 Measures No. 1) Bill 2008 No. , 2008 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 (2008
5
Measures No. 1) Act 2008.
6
2 Commence ment
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 (2008 Measures No. 1) Bill 2008 No. , 2008
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
and 2
The day on which this Act receives the
Royal Assent.
3. Schedule 3,
Part 1
The day on which this Act receives the
Royal Assent.
4. Schedule 3,
Part 2
1 Ju ly 2012.
1 Ju ly 2012
5. Schedules 4 to
6
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 both Houses of the Parliament and assented to. It will not be
2
expanded to 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
12
Political contributions and gifts Schedule 1
Tax Laws Amendment (2008 Measures No. 1) Bill 2008 No. , 2008 3
1
Schedule 1
--
Political contributions and gifts
2
3
Income Tax Assessment Act 1936
4
1 Subsections 78A(2), (3) and (4)
5
Omit "fund, authority, institution or person" (wherever occurring),
6
substitute "fund, authority or institution".
7
Income Tax Assessment Act 1997
8
2 Section 12-
5 (table item headed "political parties")
9
Repeal the item, substitute:
10
political contributions and gifts
deductions for ............................................................................ 26-22
3 After section 26-20
11
Insert:
12
26-22 Political contributions and gifts
13
You cannot deduct political contributions or gifts
14
(1) You cannot deduct under this Act:
15
(a) a contribution (including a membership fee) or gift to a
16
political party that is registered under Part XI of the
17
Commonwealth Electoral Act 1918 or under corresponding
18
State or Territory legislation; or
19
(b) a contribution or gift to an individual when the individual is a
20
candidate in an election for members of:
21
(i) an
*
Australian legislature; or
22
(ii) a
*
local governing body; or
23
(c) a contribution or gift to an individual who is a member of:
24
(i) an Australian legislature; or
25
(ii) a local governing body.
26
Schedule 1 Po litical contributions and gifts
4 Tax Laws Amendment (2008 Measures No. 1) Bill 2008 No. , 2008
Exception for employees and office holders
1
(2) However, subsection (1) does not apply to a loss or outgoing
2
incurred in gaining or producing assessable income from which an
3
amount is required to be withheld under section 12-35 or 12-45 in
4
Schedule 1 to the Taxation Administration Act 1953.
5
Note:
These provisions of the Taxation Administration Act 1953 require
6
amounts to be withheld from income of employees and office holders.
7
Starting and stopping being a candidate
8
(3) For the purposes of this section, an individual:
9
(a) starts being a candidate when the individual's intention to be
10
or to attempt to be a candidate for the election is publicly
11
available; and
12
(b) stops being a candidate at the earlier of:
13
(i) the time when the result of the election is declared or
14
otherwise publicly announced by an entity (an electoral
15
official) authorised under the relevant electoral
16
legislation; and
17
(ii) the time (if any) when the individual's intention to no
18
longer be a candidate for the election is publicly
19
available.
20
Starting being a member
21
(4) An individual who becomes a member as a result of an election
22
(including an election that is later declared void) is taken to start
23
being a member when the individual's election as a member is
24
declared or otherwise publicly announced by an electoral official.
25
4 Subsection 30-5(1)
26
Omit "a contribution or gift to a political party, independent candidate
27
or member, or".
28
5 Subsection 30-5(1) (note 1)
29
Omit "Note 1", substitute "Note".
30
6 Subsection 30-5(1) (note 2)
31
Repeal the note.
32
Political contributions and gifts Schedule 1
Tax Laws Amendment (2008 Measures No. 1) Bill 2008 No. , 2008 5
7 Subsection 30-15(2) (note 1)
1
Omit "Note 1", substitute "Note".
2
8 Subsection 30-15(2) (note 2)
3
Repeal the note.
4
9 Subdivision 30-DA
5
Repeal the Subdivision.
6
10 Subsection 30-315(2) (table item 87)
7
Repeal the item.
8
11 At the end of section 110-38
9
Add:
10
(6) Expenditure does not form part of any element of the cost base to
11
the extent that section 26-22 prevents it being deducted.
12
Note:
Section 26-22 denies deductions for political contributions and gifts.
13
12 After subsection 110-55(9E)
14
Insert:
15
(9F) Expenditure does not form part of the reduced cost base to the
16
extent that section 26-22 prevents it being deducted.
17
Note:
Section 26-22 denies deductions for political contributions and gifts.
18
13 Subsection 995-1(1) (definition of independent candidate)
19
Repeal the definition.
20
14 Subsection 995-1(1) (definition of independent member)
21
Repeal the definition.
22
15 Application
23
The amendments made by this Schedule apply in relation to
24
contributions or gifts made on or after 1 July 2008.
25
26
Schedule 2 Superannuation lu mp sum paid to a member having a terminal med ical
condition
Part 1 A mend ments
6 Tax Laws Amendment (2008 Measures No. 1) Bill 2008 No. , 2008
1
Schedule 2
--
Superannuation lump sum paid
2
to a member having a terminal medical
3
condition
4
Part 1
--
Amendments
5
Income Tax Assessment Act 1997
6
1 Section 11-
55 (table item headed "superannuation")
7
After:
8
roll-over superannuation benefits ............................................
306-5
insert:
9
superannuation lu mp sum for recipient having terminal
med ical condition .................................................................
303-10
2 At the end of Division 303
10
Add:
11
303-10 Superannuation lump sum me mbe r benefit paid to me mber
12
having a terminal medical condition
13
(1) This section applies to a
*
superannuation member benefit that:
14
(a) is a
*
superannuation lump sum; and
15
(b) is:
16
(i) paid from a
*
complying superannuation plan; or
17
(ii) a
*
superannuation guarantee payment, a
*
small
18
superannuation account payment, an
*
unclaimed money
19
payment, a
*
superannuation co-contribution benefit
20
payment or a
*
superannuation annuity payment.
21
(2) The lump sum is not assessable income and is not
*
exempt income
22
if a
*
terminal medical condition exists in relation to you when you
23
receive the lump sum or within 90 days after you receive it.
24
Note:
For a lump sum you receive in the 2007-08 financial year, the period
25
of 90 days may be extended until 30 June 2008: see section 303-10 of
26
the Income Tax (Transitional Provisions) Act 1997.
27
3 Subsection 995-1(1)
28
Superannuation lump sum paid to a member having a terminal medical condition
Schedule 2
Amend ments Part 1
Tax Laws Amendment (2008 Measures No. 1) Bill 2008 No. , 2008 7
Insert:
1
terminal medical condition has the meaning given by the
2
regulations.
3
Income Tax (Transitional Provisions) Act 1997
4
4 After Division 302
5
Insert:
6
Division 303--Superannuation benefits paid in special
7
circumstances
8
Table of sections
9
303-10
Superannuation lump sum paid to member having a terminal medical
10
condition
11
303-10 Superannuation lump sum me mbe r benefit paid to me mber
12
having a terminal medical condition
13
(1) This section applies to a superannuation member benefit that you
14
receive during the 2007-08 financial year and that:
15
(a) is a superannuation lump sum; and
16
(b) is:
17
(i) paid from a complying superannuation plan; or
18
(ii) a superannuation guarantee payment, a small
19
superannuation account payment, an unclaimed money
20
payment, a superannuation co-contribution benefit
21
payment or a superannuation annuity payment.
22
(2) The lump sum is not assessable income and is not exempt income
23
if a terminal medical condition exists in relation to you at a time in
24
the period:
25
(a) starting when you receive the lump sum; and
26
(b) ending at the later of:
27
(i) 90 days after you receive it; and
28
(ii) 30 June 2008.
29
30
Schedule 2 Superannuation lu mp sum paid to a member having a terminal med ical
condition
Part 2 Application
8 Tax Laws Amendment (2008 Measures No. 1) Bill 2008 No. , 2008
1
Part 2
--
Application
2
5 Application
3
The amendments made by this Schedule apply to payments made on or
4
after 1 July 2007.
5
6
Capital expenditure for the establishment of trees in carbon sink forests Schedule 3
Income years 2007-08 to 2011-12 Part 1
Tax Laws Amendment (2008 Measures No. 1) Bill 2008 No. , 2008 9
1
Schedule 3
--
Capital expenditure for the
2
establishment of trees in carbon sink
3
forests
4
Part 1
--
Income years 2007-08 to 2011-12
5
Income Tax Assessment Act 1997
6
1 Section 12-
5 (table item headed "capital allowances")
7
After:
8
telecommun ications site access rights .....................................
Subdivision 40-B
insert:
9
trees in carbon sink forests ........................................................
Subdivision 40-J
2 Section 12-
5 (after table item headed "travel expenses")
10
Insert:
11
trees in carbon sink forests
see capital allowances
3 Section 40-10 (at the end of the table)
12
Add:
13
2.4
Capital expenditure for establishing trees in carbon
sink forests
You can deduct amounts for capital expenditure for the
establishment of trees in carbon sink forests.
Subdivision 40-J
4 Subsection 40-50(1)
14
Omit "or 40-G (about capital expenditure of primary producers and
15
other landholders)", substitute ", 40-G (about capital expenditure of
16
primary producers and other landholders) or 40-J (about capital
17
expenditure for the establishment of trees in carbon sink forests)".
18
5 After subsection 40-630(2B)
19
Insert:
20
Schedule 3 Capital expenditure fo r the establishment of trees in carbon sink forests
Part 1 Inco me years 2007-08 to 2011-12
10 Tax Laws Amendment (2008 Measures No. 1) Bill 2008 No. , 2008
Exception: deduction available under Subdivision 40-J
1
(2C) You cannot deduct an amount under this Subdivision for capital
2
expenditure if any entity can deduct an amount for that expenditure
3
for any income year under Subdivision 40-J.
4
6 At the end of Division 40
5
Add:
6
Subdivision 40-J--Capital expenditure for the establishment of
7
trees in carbon sink forests
8
Guide to Subdivision 40-J
9
40-1000 What this Subdivision is about
10
You can deduct amounts for capital expenditure incurred for
11
establishing trees that meet the requirements for constituting a
12
carbon sink forest.
13
Table of sections
14
Operative provisions
15
40-1005 Deduction for expenditure for establishing trees in carbon sink forests
16
40-1010 Expenditure for establishing trees in carbon sink forests
17
40-1015 Carbon sequestration by trees
18
40-1020 Certain expenditure disregarded
19
40-1025 Non-arm's length transactions
20
Operative provisions
21
40-1005 Deduction for expenditure for establishing trees in carbon
22
sink forests
23
(1) You can deduct an amount for an income year if:
24
(a) you incur capital expenditure that is covered under
25
section 40-1010 in relation to particular trees established in
26
the income year; and
27
(b) you satisfy a condition in subsection (5) for the trees when
28
they are established.
29
Capital expenditure for the establishment of trees in carbon sink forests Schedule 3
Income years 2007-08 to 2011-12 Part 1
Tax Laws Amendment (2008 Measures No. 1) Bill 2008 No. , 2008 11
(2) The amount of the deduction is the amount of the expenditure.
1
(3) You can deduct an amount for an income year if:
2
(a) you incur capital expenditure in the income year or an earlier
3
income year for establishing particular trees; and
4
(b) that expenditure is not covered under section 40-1010 in
5
relation to the trees, because some or all of the trees are
6
established after the end of the income year; and
7
(c) the trees established after the end of the income year are
8
established within 4 months after the end of the income year;
9
and
10
(d) you could deduct the amount for the income year under
11
subsection (1) in respect of the expenditure, assuming that,
12
for the purposes of paragraphs 40-1010(1)(a) and (2)(a), the
13
income year ended 4 months after it actually ended.
14
(4) If:
15
(a) you can deduct an amount for an income year under
16
subsection (3) in relation to particular trees; and
17
(b) you incur capital expenditure in the next income year for
18
establishing other trees;
19
in determining whether you can deduct an amount under
20
subsection (1) for the next income year in respect of the other trees,
21
for the purposes of paragraph 40-1010(2)(a), disregard the trees
22
mentioned in paragraph (a).
23
(5) The conditions are as follows:
24
25
Conditions for deduction for establishing trees in carbon sink forest
Item
Condition
1
You o wn the trees and any holder of a lease, lesser interest or licence
relating to the land occupied by the trees does not use the land for the
primary and principal purpose of
*
carbon sequestration by the trees.
2
The trees occupy land you hold under a lease, or a
*
quasi-ownership right
granted by an
*
exempt Australian government agency or an
*
exempt foreign
government agency, and:
(a) the lease or quasi-ownership right enables you to use the land for the
primary and principal purpose of
*
carbon sequestration by the trees; and
(b) any holder of a lesser interest or licence relating to the land does not use
the land for the primary and principal purpose of carbon sequestration
by the trees.
Schedule 3 Capital expenditure fo r the establishment of trees in carbon sink forests
Part 1 Inco me years 2007-08 to 2011-12
12 Tax Laws Amendment (2008 Measures No. 1) Bill 2008 No. , 2008
Conditions for deduction for establishing trees in carbon sink forest
Item
Condition
3
You :
(a) hold a licence relating to the land occupied by the trees; and
(b) use the land for the primary and principal purpose of
*
carbon
sequestration by the trees, as a result of holding the licence.
40-1010 Expenditure for establishing trees in carbon sink forests
1
(1) Expenditure is covered under this section in relation to particular
2
trees if:
3
(a) the trees are established in an income year; and
4
(b) you incur the expenditure in the income year or an earlier
5
income year for establishing the trees; and
6
(c) you are carrying on a
*
business in the income year; and
7
(d) your primary and principal purpose for establishing the trees
8
is
*
carbon sequestration by the trees (see section 40-1015);
9
and
10
(e) your purposes for establishing the trees do not include any of
11
the following:
12
(i) felling the trees;
13
(ii) using the trees for
*
commercial horticulture; and
14
(f) you do not incur the expenditure under:
15
(i) a
*
managed investment scheme; or
16
(ii) a
*
forestry managed investment scheme; and
17
(g) all of the conditions in subsection (2) are satisfied for the
18
trees; and
19
(h) you give the Commissioner, in accordance with
20
subsection (4), a statement that:
21
(i) sets out all information necessary to determine whether
22
all of the conditions in subsection (2) are satisfied for
23
the trees; and
24
(ii) is in the
*
approved form.
25
(2) The conditions are as follows:
26
(a) at the end of the income year, the trees occupy a continuous
27
land area in Australia of 0.2 hectares or more;
28
Capital expenditure for the establishment of trees in carbon sink forests Schedule 3
Income years 2007-08 to 2011-12 Part 1
Tax Laws Amendment (2008 Measures No. 1) Bill 2008 No. , 2008 13
(b) at the time the trees are established, it is more likely than not
1
that they will:
2
(i) attain a crown cover of 20% or more; and
3
(ii) reach a height of at least 2 metres;
4
(c) on 1 January 1990, the area occupied by the trees was clear
5
of other trees that:
6
(i) attained, or were more likely than not to attain, a crown
7
cover of 20% or more; and
8
(ii) reached, or were more likely than not to reach, a height
9
of at least 2 metres;
10
(d) the establishment of the trees meets the requirements of the
11
guidelines mentioned in subsection (3).
12
(3) The
*
Climate Change Minister must, by legislative instrument,
13
make guidelines about environmental and natural resource
14
management in relation to the establishment of trees for the
15
purposes of
*
carbon sequestration.
16
(4) The statement mentioned in paragraph (1)(h) is to be given to the
17
Commissioner no later than:
18
(a) if you lodge your
*
income tax return for the income year
19
within 5 months after the end of the income year--the day
20
you lodge that income tax return; or
21
(b) otherwise--5 months after the end of the income year.
22
(5) However, expenditure is not covered under this section if the
23
*
Climate Change Secretary gives the Commissioner a notice under
24
subsection (6) in relation to the trees.
25
(6) The
*
Climate Change Secretary must give the Commissioner a
26
notice in writing under this subsection if the Climate Change
27
Secretary is satisfied that one or more of the conditions in
28
subsection (2) have not been satisfied for the trees.
29
(7) A person may apply to the
*
AAT for review of a decision (as
30
defined in the Administrative Appeals Tribunal Act 1975) of the
31
*
Climate Change Secretary to give a notice under subsection (6).
32
(8) The Commissioner may give the
*
Climate Change Secretary a copy
33
of the statement mentioned in paragraph (1)(h), for the purposes of
34
subsections (5), (6) and (7).
35
Schedule 3 Capital expenditure fo r the establishment of trees in carbon sink forests
Part 1 Inco me years 2007-08 to 2011-12
14 Tax Laws Amendment (2008 Measures No. 1) Bill 2008 No. , 2008
40-1015 Carbon sequestration by trees
1
Carbon sequestration by trees means the process by which trees
2
absorb carbon dioxide from the atmosphere.
3
40-1020 Certain expenditure disregarded
4
In working out a deduction under this Subdivision in relation to the
5
establishment of trees, disregard expenditure incurred:
6
(a) in draining swamp or low-lying land; or
7
(b) in clearing land.
8
40-1025 Non-arm's length transactions
9
If an entity incurred capital expenditure under an
*
arrangement
10
and:
11
(a) there is at least one other party to the arrangement with
12
whom the entity did not deal at
*
arm's length; and
13
(b) apart from this section, the amount of the expenditure would
14
be more than the
*
market value of what it was for;
15
the amount of expenditure taken into account under this
16
Subdivision is that market value.
17
7 After subsection 70-120(5)
18
Insert:
19
No deduction for carbon sink forests
20
(5A) You cannot deduct under this section so much of an amount you
21
paid or incurred as is attributable to the establishment of trees for
22
which any entity has deducted, or can deduct, an amount for any
23
income year under Subdivision 40-J.
24
8 Subsection 995-1(1)
25
Insert:
26
carbon sequestration has the meaning given by section 40-1015.
27
9 Subsection 995-1(1)
28
Insert:
29
Capital expenditure for the establishment of trees in carbon sink forests Schedule 3
Income years 2007-08 to 2011-12 Part 1
Tax Laws Amendment (2008 Measures No. 1) Bill 2008 No. , 2008 15
Climate Change Minister means the Minister administering the
1
National Greenhouse and Energy Reporting Act 2007.
2
10 Subsection 995-1(1)
3
Insert:
4
Climate Change Secretary means the Secretary of the Department
5
that administers the National Greenhouse and Energy Reporting
6
Act 2007.
7
11 Application
8
The amendments made by this Part of this Schedule apply to the
9
2007-08 income year and later income years.
10
11
Schedule 3 Capital expenditure fo r the establishment of trees in carbon sink forests
Part 2 Inco me year 2012-13 and later income years
16 Tax Laws Amendment (2008 Measures No. 1) Bill 2008 No. , 2008
1
Part 2
--
Income year 2012-13 and later income years
2
Income Tax Assessment Act 1997
3
12 Subsections 40-1005(1), (2), (3) and (4)
4
Repeal the subsections, substitute:
5
(1) You can deduct an amount for an income year if:
6
(a) you or another entity incurred capital expenditure that is
7
covered under section 40-1010 in relation to particular trees;
8
and
9
(b) you satisfy a condition in subsection (5) for the trees for at
10
least part of the income year; and
11
(c) you are carrying on a
*
business in the income year; and
12
(d) you use the land occupied by the trees for the primary and
13
principal purpose of
*
carbon sequestration by the trees (see
14
section 40-1015); and
15
(e) your purposes in using the land occupied by the trees do not
16
include any of the following:
17
(i) felling the trees;
18
(ii) using the trees for
*
commercial horticulture; and
19
(f) you do not use the land in connection with:
20
(i) a
*
managed investment scheme; or
21
(ii) a
*
forestry managed investment scheme.
22
(2) The amount of the deduction is worked out under this formula:
23
Write-off days in income year
Establishment
Write-off rate
expenditure
365
24
where:
25
establishment expenditure is the amount of expenditure mentioned
26
in subsection (1).
27
write-off days in income year is the number of days in the income
28
year:
29
(a) that occur within the period:
30
Capital expenditure for the establishment of trees in carbon s ink forests Schedule 3
Income year 2012-13 and later income years Part 2
Tax Laws Amendment (2008 Measures No. 1) Bill 2008 No. , 2008 17
(i) starting on the first day of the income year in which the
1
trees are established; and
2
(ii) ending 14 years and 105 days after that day; and
3
(b) on which you use the land occupied by the trees for the
4
primary and principal purpose of
*
carbon sequestration by the
5
trees; and
6
(c) on which you satisfy a condition in subsection (5) for the
7
trees.
8
write-off rate is 7%.
9
(3) You cannot deduct more in total than the amount of capital
10
expenditure incurred for establishing the trees up to the time at
11
which they are established.
12
13 Paragraph 40-1010(1)(b)
13
After "you incur", insert "or another entity incurs".
14
14 Paragraph 40-1010(1)(c)
15
Omit "you are", substitute "the entity incurring the expenditure (the
16
establishing entity) is".
17
15 Paragraph 40-1010(1)(d)
18
Omit "your", substitute "the establishing entity's".
19
16 Paragraph 40-1010(1)(e)
20
Omit "your", substitute "the establishing entity's".
21
17 Paragraph 40-1010(1)(f)
22
Omit "you do", substitute "the establishing entity does".
23
18 Paragraph 40-1010(1)(h)
24
Omit "you give", substitute "the establishing entity gives".
25
19 Paragraph 40-1010(4)(a)
26
Repeal the paragraph, substitute:
27
(a) if the establishing entity lodges its
*
income tax return for the
28
income year within 5 months after the end of the income
29
year--the day the establishing entity lodges that income tax
30
return; or
31
Schedule 3 Capital expenditure fo r the establishment of trees in carbon sink forests
Part 2 Inco me year 2012-13 and later income years
18 Tax Laws Amendment (2008 Measures No. 1) Bill 2008 No. , 2008
20 At the end of Subdivision 40-J
1
Add:
2
40-1030 Extra deduction for destruction of trees in carbon sink
3
forest
4
(1) You can deduct the amount worked out under subsection (2) for an
5
income year if:
6
(a) you or another entity incurred capital expenditure that is
7
covered under section 40-1010 in relation to particular trees;
8
and
9
(b) you use the land occupied by the trees for the primary and
10
principal purpose of
*
carbon sequestration by the trees; and
11
(c) the trees are destroyed during the income year; and
12
(d) you satisfy a condition in subsection 40-1005(5) for the trees
13
just before they are destroyed.
14
(2) Work out the amount of the deduction as follows:
15
Method statement
16
Step 1. Work out the total of the amounts you could have
17
deducted under this Subdivision in relation to the trees
18
for the period:
19
(a)
starting on the first day of the income year in
20
which the trees are established; and
21
(b)
ending when the trees were destroyed;
22
assuming that, during that period, you satisfied a
23
condition in the table in subsection 40-1005(5).
24
Step 2. Subtract from the expenditure that is covered under
25
section 40-1010 in relation to the trees:
26
(a)
the result from step 1; and
27
(b)
any amount you received (under an insurance
28
policy or otherwise) for the destruction.
29
The remaining amount (if positive) is your deduction
30
under subsection (1).
31
Capital expenditure for the establishment of trees in carbon sink forests Schedule 3
Income year 2012-13 and later income years Part 2
Tax Laws Amendment (2008 Measures No. 1) Bill 2008 No. , 2008 19
(3) This deduction is in addition to any deduction for the income year
1
under section 40-1005.
2
40-1035 Getting information if you acquire a carbon sink forest
3
(1) This section applies if:
4
(a) you or another entity incurred capital expenditure; and
5
(b) the expenditure is covered under section 40-1010 in relation
6
to particular trees; and
7
(c) you begin to satisfy a condition in the table in subsection
8
40-1005(5) for the trees.
9
(2) You may give the last entity (if any) that satisfied a condition
10
mentioned in subsection 40-1005(5) for the trees a written notice
11
requiring the entity to give you any or all of the following
12
information:
13
(a) the amount of the expenditure covered under section 40-1010
14
in relation to the trees;
15
(b) the income year in which the trees were established.
16
(3) The notice must:
17
(a) be given within 60 days of your beginning to satisfy the
18
condition mentioned in paragraph (1)(c); and
19
(b) specify a period of at least 60 days within which the
20
information must be given; and
21
(c) set out the effect of subsection (4).
22
Note:
Subsections (5), (6) and (7) explain how this subsection operates if the
23
entity to which the notice is to be given is a partnership.
24
Requirement to comply with notice
25
(4) The entity to whom the notice is given must not intentionally
26
refuse or fail to comply with the notice.
27
Penalty: 10 penalty units.
28
Giving the notice to a partnership
29
(5) If the entity to whom the notice is given is a partnership:
30
(a) you may give it to the partnership by giving it to any of the
31
partners (this does not limit how else you can give it); and
32
Schedule 3 Capital expenditure fo r the establishment of trees in carbon sink forests
Part 2 Inco me year 2012-13 and later income years
20 Tax Laws Amendment (2008 Measures No. 1) Bill 2008 No. , 2008
(b) the obligation to comply with the notice is imposed on each
1
of the partners (not on the partnership), but may be
2
discharged by any of them.
3
(6) A partner must not intentionally refuse or fail to comply with that
4
obligation.
5
Penalty: 10 penalty units.
6
(7) Subsection (6) does not apply if another partner has already
7
complied with that obligation.
8
Note:
A defendant bears an evidential burden in relation to the matters in
9
subsection (7), see subsection 13.3(3) of the Criminal Code.
10
Limits on giving a notice
11
(8) Only one notice can be given in relation to the same trees.
12
21 Application
13
The amendments made by this Part of this Schedule apply to the
14
2012-13 income year and later income years.
15
16
Tax offset for Equine Workers Hardship Wage Supplement Pay ments Schedule 4
Tax Laws Amendment (2008 Measures No. 1) Bill 2008 No. , 2008 21
1
Schedule 4
--
Tax offset for Equine Workers
2
Hardship Wage Supplement Payments
3
4
Income Tax Assessment Act 1936
5
1 Subsection 160AAA(1) (at the end of the definition of
6
rebatable benefit)
7
Add:
8
; or (g) known as the Equine Workers Hardship Wage Supplement
9
Payment.
10
Income Tax Assessment Act 1997
11
2 Section 13-
1 (after table item headed "entrepreneurs' tax
12
offset")
13
Insert:
14
Equine Workers Hardship Wage Supplement Payment
see social security and other benefit payments
3 Section 13-
1 (table item headed "social security and other
15
benefit payments")
16
After:
17
Cyclone Larry or Cyclone Monica income support
payment .................................................................................
160AAA(3)
insert:
18
Equine Workers Hardship Wage Supplement Pay ment .....
160AAA(3)
4 Application
19
The amendments made by this Schedule apply in relation to Equine
20
Workers Hardship Wage Supplement Payments received in the 2007-08
21
income year and later income years.
22
23
Schedule 5 Tobacco industry exit g rants
22 Tax Laws Amendment (2008 Measures No. 1) Bill 2008 No. , 2008
1
Schedule 5
--
Tobacco industry exit grants
2
3
Income Tax Assessment Act 1997
4
1 Section 11-
10 (table item headed "sugar industry exit
5
grants")
6
Repeal the item.
7
2 Section 11-
15 (before table item headed "copyright
8
collecting societies")
9
Insert:
10
agricultural industry exit grants
sugar industry exit grants......... ................................................
53-10
tobacco industry exit grants.....................................................
53-10
3 Section 53-10 (after table item 4B)
11
Insert:
12
4C
Tobacco industry
exit grant
The program
known as the
Tobacco Gro wers
Adjustment
Assistance
Programme 2006
As a condition of receiv ing
the grant, you entered into
an undertaking not to
become the owner or
operator of any agricultural
*
enterprise within 5 years
after receiving the grant
4 At the end of subsection 118-37(1)
13
Add:
14
; (g) a tobacco industry exit grant that you receive under the
15
program known as the Tobacco Growers Adjustment
16
Assistance Programme 2006 if, as a condition of receiving
17
the grant, you entered into an undertaking not to become the
18
owner or operator of any agricultural
*
enterprise within 5
19
years after receiving the grant.
20
5 Application of amendments
21
The amendments made by this Schedule apply to tobacco industry exit
22
grants received in the 2006-07 income year and later income years.
23
24
Farm management deposits Schedule 6
Tax Laws Amendment (2008 Measures No. 1) Bill 2008 No. , 2008 23
1
Schedule 6
--
Farm management deposits
2
3
Income Tax Assessment Act 1936
4
1 Paragraphs 393-37(3)(b) and (c) in Schedule 2G
5
Repeal the paragraphs, substitute:
6
(b) at the time of the withdrawal, that owner is eligible for the
7
issue of an exceptional circumstances certificate (within the
8
meaning of subsection 8A(2) of the Farm Household Support
9
Act 1992) that relates to a primary production business of that
10
owner;
11
(c) by the end of 3 months after the end of the year of income in
12
which the withdrawal is made, such an exceptional
13
circumstances certificate is issued in respect of that owner;
14
(d) a declaration of exceptional circumstances (as referred to in
15
paragraph 8(c) of the Rural Adjustment Act 1992) was not in
16
force in relation to that primary production business when the
17
deposit was made.
18
2 Application
19
The amendment made by this Schedule applies to assessments for the
20
2002-03 year of income and later years of income.
21