TAX LAWS AMENDMENT (2010 MEASURES NO. 3) BILL 2010

i Tax Laws Amendment (2010 Measures No. 3) Bill 2010 No. , 2010

Contents

1 Short

title

...........................................................................................

2 Commencement

.................................................................................

3 Schedule(s)

........................................................................................

Schedule 1--Government co-contribution for low income

earners

Superannuation (Government Co-contribution for Low Income

Earners) Act 2003

Schedule 2--Thin capitalisation

Income Tax Assessment Act 1997

Schedule 3--Exempting certain transactions involving security

agencies

Taxation Administration Act 1953

Schedule 4--Special disability trusts

Income Tax Assessment Act 1936

Income Tax Assessment Act 1997

Schedule 5--Managed investment trusts

Income Tax Assessment Act 1997

Taxation Administration Act 1953

Tax Laws Amendment (2010 Measures No. 3) Bill 2010 No. , 2010 1

A Bill for an Act to amend the law relating to

taxation and superannuation, and for related

purposes

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Tax Laws Amendment (2010

Measures No. 3) Act 2010.

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 (2010 Measures No. 3) Bill 2010 No. , 2010

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 this Act receives the Royal Assent.

2. Schedule 1

1 July 2010.

1 July 2010

3. Schedules 2 to

The day this Act receives the Royal Assent.

Note:

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

passed by both Houses of 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repealed as set out in the applicable items in the Schedule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.

Government co-contribution for low income earners Schedule 1

Tax Laws Amendment (2010 Measures No. 3) Bill 2010 No. , 2010 3

Schedule 1--Government co-contribution for

low income earners

Superannuation (Government Co-contribution for Low

Income Earners) Act 2003

1 Paragraphs 9(1)(c), (d) and (e)

Repeal the paragraphs, substitute:

amount equal to the sum of the eligible personal

superannuation contributions the person makes during the

income year.

2 Subsections 10(1B), (1C) and (1D)

Repeal the subsections, substitute:

(1B) The amount of the Government co-contribution in respect of a

person for the 2009-10 income year or a later income year must not

exceed the maximum amount worked out using the following

table:

Maximum Government co-contribution

Item

Person's total income for the

income year

Maximum amount

the lower income threshold or

less

$1,000

more than the lower income

threshold but less than the

higher income threshold

$1,000 reduced by 3.333 cents for

each dollar by which the person's

total income for the income year

exceeds the lower income

threshold

3 Subsection 10(2)

Omit "Subsections (1), (1A), (1B), (1C) and (1D)", substitute

"Subsections (1), (1A) and (1B)".

4 Paragraph 10A(1)(a)

Schedule 1 Government co-contribution for low income earners

4 Tax Laws Amendment (2010 Measures No. 3) Bill 2010 No. , 2010

After "later income years", insert "(apart from the 2010-11 and 2011-12

income years)".

5 Paragraph 10A(1)(b)

After "each later income year", insert "(apart from the 2010-11 and

2011-12 income years)".

6 After subsection 10A(5)

Insert:

(5A) Despite subsection (5), the indexation factor for the 2010-11 and

2011-12 income years is 1.

7 Application provision

The amendments made by this Schedule apply to the 2009-10 income

year and later income years.

Thin capitalisation Schedule 2

Tax Laws Amendment (2010 Measures No. 3) Bill 2010 No. , 2010 5

Schedule 2--Thin capitalisation

Income Tax Assessment Act 1997

1 At the end of section 820-300

Add:

(4) For the purposes of paragraph (3)(a), treat treasury shares (within

the meaning of

accounting standard AASB 132) in the entity as

included in the

ADI equity capital of the entity, to the extent that

those shares are part of the entity's eligible tier 1 capital (within the

meaning of the

prudential standards).

2 Section 820-310

Before "The safe harbour capital amount is", insert "(1)".

3 Section 820-310 (method statement, step 1)

Omit all the words before paragraph (a), substitute:

Step 1. Work out the average value, for the income year, of all

the entity's:

(aa)

risk-weighted assets; and

(ab)

intangible assets comprising capitalised software

expenses;

that are attributable to none of the following:

4 Section 820-310 (method statement, step 3)

Repeal the step, substitute:

Step 3. Add to the result of step 2 the average value, for that

year, of all the

tier 1 prudential capital deductions for the

entity, to the extent that they are not attributable to:

(a)

any of the entity's

overseas permanent

establishments; or

Schedule 2 Thin capitalisation

6 Tax Laws Amendment (2010 Measures No. 3) Bill 2010 No. , 2010

(b)

any

Australian controlled foreign entities of which

the entity is an

Australian controller; or

(c)

any of the entity's goodwill or intangible assets

which relate to the excess mentioned in paragraph

5.3 of

accounting standard AASB 1038, as issued

on 17 November 1998, to the extent that the excess

is referrable to

VBIF; or

Note:

Paragraph 5.3 of that accounting standard applies to any

excess of the net market values of an interest in a

subsidiary over the net amount of that subsidiary's assets

and liabilities.

(d)

any of the entity's intangible assets comprising

capitalised software expenses.

The result of this step is the safe harbour capital

amount.

5 Section 820-310 (example)

Omit "risk-weighted assets is $150 million (having discounted those

risk-weighted assets", substitute "risk-weighted assets and intangible

assets comprising capitalised software expenses is $150 million (having

discounted those assets".

6 At the end of section 820-310

Add:

(2)

VBIF is the value of business in force at the time of acquisition of

the relevant subsidiary (within the meaning of paragraph 5.3 of

accounting standard AASB 1038, as issued on 17 November

1998) of the entity.

(3)

VBIF is taken to be nil at all times unless the value of VBIF at the

time of acquisition of the relevant subsidiary was worked out by an

actuary according to Australian actuarial practice.

7 Subsection 820-680(1) (note)

After "sections", insert "820-310,".

8 Subsection 995-1(1)

Schedule 3 Exempting certain transactions involving security agencies

8 Tax Laws Amendment (2010 Measures No. 3) Bill 2010 No. , 2010

Schedule 3--Exempting certain transactions

involving security agencies

Taxation Administration Act 1953

1 At the end of Chapter 5 in Schedule 1

Add:

Part 5-100--Miscellaneous

Division 850--Transactions exempt from application of

taxation laws

Table of Subdivisions

850-A Declaration relating to security or intelligence agency

Subdivision 850-A--Declaration relating to security or

intelligence agency

Table of sections

850-100 Declaration relating to security or intelligence agency

850-100 Declaration relating to security or intelligence agency

Object

(1) The object of this section is to remove the possibility of a conflict

arising between Australia's national security interests and

Australia's taxation laws.

Making a declaration

(2) The Director-General of Security holding office under the

Australian Security Intelligence Organisation Act 1979 may

declare that this section applies to one or more specified entities

(the Australian Security Intelligence Organisation itself may be

specified) in relation to one or more specified transactions.

Exempting certain transactions involving security agencies Schedule 3

Tax Laws Amendment (2010 Measures No. 3) Bill 2010 No. , 2010 9

(3) The Director-General of the Australian Secret Intelligence Service

(ASIS) may declare that this section applies to one or more

specified entities (ASIS itself may be specified) in relation to one

or more specified transactions.

(4) A declaration under this section may only be made if the relevant

Director-General is satisfied that the making of the declaration is

necessary for the proper performance of the functions of:

(a) for the Director-General of Security--the Australian Security

Intelligence Organisation; or

(b) for the Director-General of ASIS--ASIS.

(5) A declaration under this section must be in writing, signed by the

relevant Director-General.

Note 1:

A declaration may specify an entity or transaction by reference to a

class of entities or transactions (see subsection 46(3) of the Acts

Interpretation Act 1901). For example, a declaration may specify the

subsidiaries of a specified company, or the parties to a specified

transaction.

Note 2:

For variation and revocation, see subsection 33(3) of the Acts

Interpretation Act 1901.

(6) A declaration may be made even though:

(a) a transaction it specifies has already been entered into or

carried out; or

(b) an entity it specifies has died or ceased to exist;

(whether before or after the commencement of this section).

(7) A written document signed by the relevant Director-General

purporting to be a declaration is prima facie evidence that this

section has been complied with in making the declaration, but this

subsection does not affect the performance of the functions of the

Inspector-General of Intelligence and Security.

Effect of declaration

(8) For an entity specified in a declaration in relation to a specified

transaction, the transaction is to be disregarded in determining any

of the following:

(a) the existence or amount of a liability of the entity relating to

taxation under any

Commonwealth law, even if the law

requires express words to be used to exempt an entity or

transaction from liability to taxation under that law;

Schedule 3 Exempting certain transactions involving security agencies

10 Tax Laws Amendment (2010 Measures No. 3) Bill 2010 No. , 2010

Example: Examples of liabilities covered by paragraph (a) are a liability to

GST (despite section 177-5 of the A New Tax System (Goods and

Services Tax) Act 1999), and amounts required to be paid by

Part 2-5 in this Schedule (Pay as you go (PAYG) withholding).

(b) the existence or amount of any kind of benefit (however the

benefit is expressed) relating to taxation under any

Commonwealth law;

Example: Examples of benefits covered by paragraph (b) are deductions,

credits and offsets under the Income Tax Assessment Act 1997,

and input tax credits under the A New Tax System (Goods and

Services Tax) Act 1999.

the entity relating to a liability or benefit of a kind mentioned

in paragraph (a) or (b).

Example: Examples of obligations covered by paragraph (c) include the

following:

(a) an obligation to withhold money from a payment;

(b) an obligation to lodge a return, or to provide information, to the

Commissioner of Taxation;

(9) A declaration under this section is not a legislative instrument.

Special disability trusts Schedule 4

Tax Laws Amendment (2010 Measures No. 3) Bill 2010 No. , 2010 11

Schedule 4--Special disability trusts

Income Tax Assessment Act 1936

1 Subsection 6(1)

Insert:

principal beneficiary of a special disability trust has the same

meaning as in the Income Tax Assessment Act 1997.

2 Subsection 6(1)

Insert:

special disability trust has the same meaning as in the Income Tax

Assessment Act 1997.

3 After section 95AA

Insert:

95AB Modifications for special disability trusts

(1) This Division applies with the modifications set out in this section

in relation to a year of income in relation to a trust estate that is a

special disability trust at the end of the year of income.

(2) Treat the principal beneficiary of the trust estate as being presently

entitled to all of the income of the trust estate of the year of

income.

(3) If the principal beneficiary of the trust estate is a resident of

Australia at the end of the year of income treat that person as being

under a legal disability throughout the year of income.

(4) If there is no income of the trust estate assume that:

(a) there is income of the trust estate of the year of income; and

(b) the principal beneficiary of the trust estate is presently

entitled to all of the income of the trust estate of the year of

income.

(5) If the amount to be deducted under subsection 100(2) from the

income tax assessed against the principal beneficiary is greater

Schedule 4 Special disability trusts

12 Tax Laws Amendment (2010 Measures No. 3) Bill 2010 No. , 2010

than the amount of the income tax assessed against the principal

beneficiary, the Commissioner must pay to the principal

beneficiary an amount equal to the difference between those 2

amounts.

Note:

The tax offset is subject to the refundable tax offset rules: see

section 67-23 of the Income Tax Assessment Act 1997.

4 After paragraph 102AC(2)(d)

Insert:

(da) the minor is the principal beneficiary of a special disability

trust;

Income Tax Assessment Act 1997

5 Section 67-23 (before table item 5)

Insert:

principal beneficiary of a

special disability trust

the

tax offset available under subsection

95AB(5) of the Income Tax Assessment Act

1936

6 Subsection 995-1(1)

Insert:

principal beneficiary of a special disability trust has the meaning

given by section 1209M of the Social Security Act 1991.

7 Subsection 995-1(1)

Insert:

special disability trust has the meaning given by section 1209L of

the Social Security Act 1991.

8 Application provision

The amendments made by this Schedule apply to assessments for the

2008-09 income year and later income years.

Managed investment trusts Schedule 5

Tax Laws Amendment (2010 Measures No. 3) Bill 2010 No. , 2010 13

Schedule 5--Managed investment trusts

Income Tax Assessment Act 1997

1 Before section 275-15

Insert:

275-5 Treatment of trading trusts etc.

For the purposes of this Division, treat a trust in the same way as a

managed investment trust in relation to an income year if it would

be a managed investment trust in relation to the income year if

paragraph 12-400(2)(a) in Schedule 1 to the Taxation

Administration Act 1953 were disregarded.

Note:

If a trading trust is treated as a managed investment trust for the

purposes of this Division for an income year, sections 275-100 (CGT

to be primary code for calculating MIT gains or losses) and 275-120

(revenue account treatment) will not apply to the trust for the year (see

subsections 275-100(1), 275-110(1) and 275-120(1)).

275-10 Trust with investment management activities outside

Australia

For the purposes of this Division, treat a trust in the same way as a

managed investment trust in relation to an income year if it would

be a managed investment trust in relation to the income year if

paragraph 12-400(1)(c) in Schedule 1 to the Taxation

Administration Act 1953 were disregarded.

2 Paragraphs 275-15(1)(a) and (b)

Repeal the paragraphs, substitute:

(a) the condition in paragraph 12-400(1)(a) in Schedule 1 to the

Taxation Administration Act 1953 is satisfied; and

(b)

either:

(i)

the

only

member of the trust is an entity covered by

subsection 12-402(3) of that Schedule (other than an

entity mentioned in paragraph (e) of that subsection); or

(ii) the only member of the trust is an entity treated in the

same way as a managed investment trust in relation to

the income year because of this Subdivision; and

Schedule 5 Managed investment trusts

14 Tax Laws Amendment (2010 Measures No. 3) Bill 2010 No. , 2010

of that Schedule in relation to the income year.

3 Subsection 995-1(1)

Insert:

MIT participation interest has the meaning given by

section 12-404 in Schedule 1 to the Taxation Administration Act

1953.

Taxation Administration Act 1953

4 Section 12-400 in Schedule 1

Repeal the section, substitute:

12-400 Meaning of managed investment trust

(1) A trust is a managed investment trust in relation to an income year

if:

(a) at the time the trustee of the trust makes the first

fund

payment in relation to the income year, or at an earlier time

in the income year:

(i) the trustee of the trust was an Australian resident; or

(ii) the central management and control of the trust was in

Australia; and

(b) the trust is not a trust covered by subsection (2) (trading trust

etc.) in relation to the income year; and

to the trust throughout the income year are carried out in

Australia; and

(d) at the time the payment is made, the trust is a managed

investment scheme (within the meaning of section 9 of the

Corporations Act 2001); and

(e) for a trust that is registered under section 601EB of the

Corporations Act 2001 at the time the payment is made--the

trust satisfies the widely-held requirements in section 12-401

in relation to the income year; and

(f) for a trust that is not so registered at the time the payment is

made:

Managed investment trusts Schedule 5

Tax Laws Amendment (2010 Measures No. 3) Bill 2010 No. , 2010 15

(i) the trust satisfies the widely-held requirements in

section 12-402 in relation to the income year; and

(ii) the trust satisfies the licensing requirements in

section 12-403 in relation to the income year; and

(iii) at the time the payment is made, the trust is not required

to be registered in accordance with section 601ED of the

Corporations Act 2001 because of subsection 601ED(2)

of that Act (no product disclosure statement required) or

because it is operated or managed by an entity covered

by subsection 12-403(2) (Crown entities); and

(iv) at the time the payment is made, the total number of

entities that had become a

member of the trust because

a financial product or a financial service was provided

to, or acquired by, the entity as a retail client (within the

meaning of sections 761G and 761GA of that Act) is no

more than 20; and

(v) at the time the payment is made, the entities mentioned

in subparagraph (iv) have a total

MIT participation

interest in the trust of no more than 10%.

Trading unit trust or other trust carrying on trading business etc.

cannot be managed investment trust

(2) A trust is covered by this subsection in relation to an income year

if:

(a) in the case of a unit trust--the trust is a trading trust for the

purposes of Division 6C in Part III of the Income Tax

Assessment Act 1936 in relation to the income year; or

(b) in any other case--the trust at any time in the income year:

(i) carried on a trading business (within the meaning of that

Division); or

(ii) controlled, or was able to control, directly or indirectly,

the affairs or operations of another person in respect of

the carrying on by that other person of a trading

business (within the meaning of that Division).

Crown entities, etc.

(3) For the purposes of paragraphs (1)(e) and (f), treat an entity as

registered under section 601EB of the Corporations Act 2001 at the

time the payment is made if at that time the trust is operated by:

Schedule 5 Managed investment trusts

16 Tax Laws Amendment (2010 Measures No. 3) Bill 2010 No. , 2010

(a) an entity that would, but for subsection 5A(4) of that Act

(about the Crown not being bound by Chapter 6CA or 7 of

that Act), be required under that Act to be a financial services

licensee (within the meaning of section 761A of that Act)

whose licence would cover operating such a managed

investment scheme; or

(b) an entity that:

(i)

wholly-owned subsidiary of an entity of a kind

mentioned in paragraph (a); and

(ii) would, but for any instrument issued by ASIC under

that Act that has effect in relation to the entity and

operation of the scheme mentioned in paragraph

12-400(1)(d), be required under that Act to be a

financial services licensee (within the meaning of

section 761A of that Act) whose licence would cover

operating such a managed investment scheme.

Start-up and wind-down phases

(4) Treat the requirements in paragraph (1)(e) and

subparagraph (1)(f)(i) as being satisfied if:

(a) the trust is created during the income year; or

(b) the trust ceases to exist during the income year, and was a

managed investment trust (disregarding paragraph (a)) in

relation to the previous income year.

12-401 Widely-held requirements for registered MIS

(1) The trust satisfies the requirements in this section in relation to the

income year if:

(a) at the time the payment mentioned in paragraph 12-400(1)(a)

is made:

(i) units in the trust are listed for quotation in the official

list of an

approved stock exchange in Australia; or

(ii) the trust has at least 50

members (ignoring objects of a

trust); and

(b) at no time in the income year do any of the following

situations exist:

(i) 20 or fewer persons have a total

MIT participation

interest in the trust of 75% or more;

Managed investment trusts Schedule 5

Tax Laws Amendment (2010 Measures No. 3) Bill 2010 No. , 2010 17

(ii) one foreign resident individual has a MIT participation

interest in the trust of 10% or more.

(2) For the purposes of paragraph (1)(a) and subparagraph (1)(b)(i),

apply these rules:

(a) treat the following entities as together being one entity:

(i)

individual;

(ii) each of his or her relatives;

(iii) each entity acting in the capacity of nominee of an

individual mentioned in subparagraph (i) or (ii);

(b) treat the following entities as together being one entity:

(i) an entity that is not an individual;

(ii) each entity acting in the capacity of nominee of the

entity mentioned in subparagraph (i).

12-402 Widely-held requirements for unregistered MIS

(1) The trust satisfies the requirements in this section in relation to the

income year if:

(a) at the time the payment mentioned in paragraph 12-400(1)(a)

is made the trust has at least 30

members; and

(b) at no time in the income year do any of the following

situations exist:

(i) 12 or fewer persons (not including entities covered by

subsection (3)) have a total

MIT participation interest

in the trust of 75% or more;

(ii) one foreign resident individual has a MIT participation

interest in the trust of 10% or more.

(2) For the purposes of paragraph (1)(a), determine the number of

members of the trust as follows:

(a) first, by applying the rules in subsection (4), identify:

(i) the members of the trust that are not entities covered by

subsection (3); and

(ii) the members of the trust that are entities covered by

subsection (3);

(b) next, work out the number of members mentioned in

subparagraph (a)(i);

(c)

Schedule 5 Managed investment trusts

18 Tax Laws Amendment (2010 Measures No. 3) Bill 2010 No. , 2010

(i)

work

out

the

MIT participation interest of each entity

mentioned in subparagraph (a)(ii); and

(ii) multiply the total of those interests by 50 and round the

result upwards to the nearest whole number;

(d) next, work out the total of the results of paragraphs (b) and

(c).

(3) This section covers the following kinds of entity:

(a)

life insurance company;

(b)

complying superannuation fund, a

complying approved

deposit fund or a

foreign superannuation fund, being a fund

that has at least 50

members;

(c)

pooled superannuation trust that has at least one member

that is a complying superannuation fund that has at least 50

members;

(d)

managed investment trust in relation to the income year;

(e) an entity that is recognised, under a

foreign law relating to

corporate regulation, as an entity with a similar status to a

managed investment scheme and that has at least 50

members.

(4) The rules are as follows:

(a) if an entity that is not a trust holds interests in the trust

indirectly, through a

chain of trusts:

(i) treat the entity as a member of the trust; and

(ii) do not treat a trust in the chain of trusts as a member of

the trust;

(b) do not treat as a member of the trust any of the following:

(i) an object of the trust;

(ii) an individual (other than an individual who became a

member of the trust because a financial product or a

financial service was provided to, or acquired by, the

individual as a wholesale client (within the meaning of

section 761G of the Corporations Act 2001));

(5) For the purposes of paragraph (4)(a), treat an entity covered by

subsection (3) as an entity that is not a trust.

(6) For the purposes of subparagraph (1)(b)(i) and subsection (4),

apply these rules:

Managed investment trusts Schedule 5

Tax Laws Amendment (2010 Measures No. 3) Bill 2010 No. , 2010 19

(a) treat the following entities as together being one entity:

(i)

individual;

(ii) each of his or her relatives;

(iii) each entity acting in the capacity of nominee of an

individual mentioned in subparagraph (i) or (ii);

(b) treat the following entities as together being one entity (the

notional entity):

(i) an entity that is not an individual;

(ii) each entity acting in the capacity of nominee of the

entity mentioned in subparagraph (i).

(7) For the purposes of subsection (4), if the entity mentioned in

subparagraph (6)(b)(i) is an entity covered by subsection (3), treat

the notional entity as an entity covered by subsection (3).

12-403 Licensing requirements for unregistered MIS

(1) The trust satisfies the requirements in this section in relation to the

income year if, at the time the payment mentioned in paragraph

12-400(1)(a) is made (the time of the first fund payment for the

income year):

(a) the trust is operated or managed by:

(i) a financial services licensee (within the meaning of

section 761A of the Corporations Act 2001) holding an

Australian financial services licence whose licence

covers it providing financial services (within the

meaning of section 766A of that Act) to wholesale

clients (within the meaning of section 761G of that

Act); or

(ii) an authorised representative (within the meaning of

section 761A of that Act) of such a financial services

licensee; or

(b) the trust is operated or managed by an entity covered by

subsection (2); or

(i)

wholly-owned subsidiary of an entity covered by

subsection (2); and

(ii) is an entity covered by subsection (3).

Schedule 5 Managed investment trusts

20 Tax Laws Amendment (2010 Measures No. 3) Bill 2010 No. , 2010

(2) An entity is covered by this subsection if it would, but for

subsection 5A(4) of that Act (about the Crown not being bound by

Chapter 6CA or 7 of that Act), be required under the Corporations

Act 2001 to be a financial services licensee (within the meaning of

section 761A of that Act).

(3) An entity is covered by this subsection if it would, but for any

instrument issued by ASIC under that Act that has effect in relation

to the entity and the operation of the scheme mentioned in

paragraph 12-400(1)(d), be required under the Corporations Act

2001 to be a financial services licensee (within the meaning of

section 761A of that Act).

12-404 MIT participation interest

(1) An entity has a MIT participation interest in a trust if the entity,

directly or indirectly:

(a) holds, or has the right to

acquire, interests representing a

percentage of the value of the interests in the trust; or

(b) has the control of, or the ability to control, a percentage of

the rights attaching to

membership interests in the trust; or

income that the trust may make.

(2)

The

MIT participation interest of the entity in the trust is the

greatest of the percentages mentioned in paragraphs (1)(a), (b) and

(c).

5 Paragraph 45-286(b) in Schedule 1

Omit "the condition in item 1 of the table in subsection 12-400(1)",

substitute "the condition in paragraph 12-400(1)(a)".

6 Application provision

(1)

Subject to this item, the amendments made by this Schedule apply to

fund payments made in relation to the first income year starting on or

after the first 1 July after the day on which this Act receives the Royal

Assent and later income years.

(2)

Subject to subitems (3) and (4), the amendments made by this Schedule

do not apply to fund payments made by a trustee of a trust made in

relation to an income year if:

Managed investment trusts Schedule 5

Tax Laws Amendment (2010 Measures No. 3) Bill 2010 No. , 2010 21

(a) the income year is the 2010-11, 2011-12, 2012-13, 2013-14

or 2014-15 income year; and

(b) before the day on which the Bill that became this Act was

introduced into the House of Representatives, the trustee of

the trust made a fund payment in relation to an income year.

(3)

The amendments made by this Schedule apply in relation to

Division 275 of the Income Tax Assessment Act 1997 in the same way

as the amendments made by Schedule 3 to the Tax Laws Amendment

(2010 Measures No. 1) Act 2010 apply in relation to that Division.

(4)

The amendments made by this Schedule apply in relation to

Subdivision 126-G of the Income Tax Assessment Act 1997 in relation

to CGT events happening on or after 1 November 2008.

Commonwealth of Australia Bills

TAX LAWS AMENDMENT (2010 MEASURES NO. 3) BILL 2010