TAX LAWS AMENDMENT (2010 MEASURES NO. 5) BILL 2010

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

Contents

1 Short

title

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

2 Commencement

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

3 Schedule(s)

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

Amendment of assessments ............................................................... 2

Schedule 1--Film tax offsets

Income Tax Assessment Act 1997

Schedule 2--Capital protected borrowings

Income Tax Assessment Act 1997

Income Tax (Transitional Provisions) Act 1997

Schedule 3--Extending CGT exemption for certain compulsory

acquisitions

Income Tax Assessment Act 1997

Schedule 4--Deductions in relation to benefits for terminal

medical conditions

Income Tax Assessment Act 1997

Schedule 5--Non-profit sub-entities

A New Tax System (Goods and Services Tax) Act 1999

Schedule 6--Running balance accounts

Taxation Administration Act 1953

Schedule 7--Education expenses tax offset (uniforms)

Income Tax Assessment Act 1997

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

Measures No. 5) 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. 5) Bill 2010 No. , 2010

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

1. Sections 1 to 4

and anything in

this Act not

elsewhere covered

by this table

The day this Act receives the Royal Assent.

2. Schedules 1 to

The day this Act receives the Royal Assent.

3. Schedule 5

The day after this Act receives the Royal

Assent.

4. Schedule 6

1 July 2011.

1 July 2011

5. Schedule 7

The day this Act receives the Royal Assent.

Note:

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

enacted. It will not be amended to deal with any later amendments of

this Act.

(2) Any information in column 3 of the table is not part of this Act.

Information may be inserted in this column, or information in it

may be 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.

4 Amendment of assessments

(1) Section 170 of the Income Tax Assessment Act 1936 does not

prevent the amendment of an assessment if:

(a) the assessment was made before the commencement of

Schedule 2 to this Act; and

(b) the amendment is made within 2 years after that

commencement; and

that Schedule.

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

(2) Section 170 of the Income Tax Assessment Act 1936 does not

prevent the amendment of an assessment if:

(a) the assessment was made before the commencement of

Schedule 3 to this Act; and

(b) the amendment is made within 2 years after that

commencement; and

that Schedule.

(3) Section 170 of the Income Tax Assessment Act 1936 does not

prevent the amendment, after the end of the period mentioned in

paragraph (2)(b), of an assessment of your income tax if:

(a) you requested the amendment before the end of that period;

and

(b) the amendment is made for the purpose of giving effect to

Schedule 3.

Schedule 1 Film tax offsets

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

Schedule 1--Film tax offsets

Income Tax Assessment Act 1997

1 Paragraph 376-10(1)(a)

Repeal the paragraph.

2 Paragraph 376-10(1)(b)

Omit "if the total of the company's qualifying Australian production

expenditure on the film (as determined by the Arts Minister under

section 376-30) is at least $50 million--the company's qualifying

Australian production expenditure", substitute "the company's

qualifying Australian production expenditure".

3 Paragraph 376-20(5)(b)

Repeal the paragraph.

4 Paragraph 376-20(5)(c)

Omit "if the total of the company's qualifying Australian production

expenditure on the film is at least $50 million,".

5 Subsection 376-20(5) (note)

Omit "subparagraph (b)(ii) and".

6 Section 376-25

Repeal the section.

7 Paragraph 376-45(5)(a)

Omit "$5 million", substitute "$500,000".

8 Section 376-130 (note)

Omit "The total amount of all production expenditure is relevant to a

company's eligibility for the location offset: see the test in paragraph

376-20(5)(b)."

9 Section 376-140 (note)

Repeal the note.

Film tax offsets Schedule 1

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

10 Paragraph 376-180(1)(d)

Omit "subparagraph 376-20(5)(b)(ii) and".

11 Subsection 376-230(1)

Repeal the subsection, substitute:

(1) A company may apply to the

Arts Minister for the issue of a

certificate to the company for a

film under section 376-20

(certificate for the location offset) when all of the company's

qualifying Australian production expenditure for the film has been

incurred.

12 Application provision

(1)

The amendments made by items 1, 2, 3, 4, 5, 6, 8, 9, 10 and 11 of this

Schedule apply to a film which commences principal photography or

production of the animated image in Australia on or after 1 July 2010.

(2)

The amendment made by item 7 of this Schedule applies to a film

which commences post, digital and visual effects production in

Australia on or after 1 July 2010.

Schedule 2 Capital protected borrowings

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

Schedule 2--Capital protected borrowings

Income Tax Assessment Act 1997

1 Paragraph 247-20(1)(a)

Repeal the paragraph, substitute:

(aa) the borrower has an excess using the method statement in

subsection (3) for:

(i)

capital protected borrowing entered into after 7.30

pm, by legal time in the Australian Capital Territory, on

13 May 2008 (the 2008 Budget time); or

(ii) an extension of the capital protected borrowing; or

(a) the borrower has an amount that is reasonably attributable to

the

capital protection as mentioned in subsection (2) for a

capital protected borrowing entered into or extended on or

after 1 July 2007 and at or before the 2008 Budget time; or

2 Paragraph 247-20(1)(b)

Omit "

capital", substitute "capital".

3 Paragraph 247-20(1)(b)

Omit "capital protected borrowing, or an extension of a capital

protected borrowing, entered into", substitute "capital protected

borrowing entered into or extended".

4 At the end of subsection 247-20(1)

Add:

Note:

If a capital protected borrowing covered by paragraph (1)(a) or (b) is

extended or otherwise changed after the 2008 Budget time,

section 247-85 of the Income Tax (Transitional Provisions) Act 1997

applies to the capital protected borrowing.

5 Subsection 247-20(2)

Omit "paragraph (1)(b)", substitute "paragraphs (1)(a) and (b)".

6 Subsection 247-20(3) (method statement, step 2)

Omit "subsection (4) or (5)", substitute "either or both of

subsections (4) and (5A)".

Capital protected borrowings Schedule 2

Tax Laws Amendment (2010 Measures No. 5) Bill 2010 No. , 2010 7

7 Subsections 247-20(4) and (5)

Repeal the subsections, substitute:

(4)

If:

(a)

the

capital protected borrowing is at a fixed rate for all or

part of the term of the capital protected borrowing; and

(b) that fixed rate is applicable to the capital protected borrowing

for all or part of the income year;

use the rate worked out under subsection (5) at the first time an

amount covered by step 1 of the method statement in

subsection (3) was incurred, in any income year, during the term of

the capital protected borrowing or that part of the term.

(5) The rate (the adjusted loan rate), at a particular time, is the sum of:

(a) the Reserve Bank of Australia's Indicator Lending Rate for

Standard Variable Housing Loans at that time; and

(b) 100 basis points.

(5A)

If:

(a)

the

capital protected borrowing is at a variable rate for all or

part of the term of the capital protected borrowing; and

(b) a variable rate is applicable to the capital protected borrowing

for all or part of the income year;

use the average of the adjusted loan rates applicable during those

parts of the income year when the capital protected borrowing is at

a variable rate.

8 Paragraph 247-20(6)(b)

Omit "(1)(b)", substitute "(1)(a) or (b)".

Income Tax (Transitional Provisions) Act 1997

9 Division 247 (heading)

Repeal the heading, substitute:

Division 247--Capital protected borrowings

Table of Subdivisions

247-A Interim apportionment methodology

Schedule 2 Capital protected borrowings

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

247-B Other

transitional

provisions

Subdivision 247-A--Interim apportionment methodology

10 Section 247-5

Omit "Division", substitute "Subdivision".

11 Section 247-5

Omit "capital protected borrowing, or an extension of it, is entered

into", substitute "capital protected borrowing is entered into or

extended".

12 At the end of Division 247

Add:

Subdivision 247-B--Other transitional provisions

Table of sections

247-75

Post-July 2007 capital protected borrowings

247-80

Capital protected borrowings in existence on 1 July 2013

247-85

Extensions and other changes

247-75 Post-July 2007 capital protected borrowings

(1) For a capital protected borrowing entered into or extended:

(a) on or after 1 July 2007; but

(b) at or before 7.30 pm, by legal time in the Australian Capital

Territory, on 13 May 2008 (the 2008 Budget time);

work out the amount that is reasonably attributable to the capital

protection using the following method statement.

Method statement

Step 1. Work out the total amount incurred by the borrower

under or in respect of the capital protected borrowing for

the income year, ignoring amounts that are not in

substance for capital protection or interest.

Step 2. Work out the total interest that would have been incurred

for the income year on a borrowing or provision of credit

Capital protected borrowings Schedule 2

Tax Laws Amendment (2010 Measures No. 5) Bill 2010 No. , 2010 9

of the same amount as under the capital protected

borrowing at the rate applicable under either or both of

subsections (2) and (3).

Step 3. If the step 1 amount exceeds the step 2 amount, the

excess is reasonably attributable to the capital protection

for the income year.

Example: Amounts that would be ignored under step 1 include amounts that are

in substance the repayment of a loan or credit, the payment of an

application fee or brokerage commission and the payment of stamp

duty or other tax.

(2)

If:

(a) the capital protected borrowing is at a fixed rate for all or part

of the term of the capital protected borrowing; and

(b) that fixed rate is applicable to the capital protected borrowing

for all or part of the income year;

use the Reserve Bank of Australia's Indicator Lending Rate for

Personal Unsecured Loans--Variable Rate (the personal

unsecured loan rate) at the first time an amount covered by step 1

of the method statement in subsection (1) was incurred, in any

income year, during the term of the capital protected borrowing or

that part of the term.

(3)

If:

(a) the capital protected borrowing is at a variable rate for all or

part of the term of the capital protected borrowing; and

(b) a variable rate is applicable to the capital protected borrowing

for all or part of the income year;

use the average of the personal unsecured loan rates applicable

during those parts of the income year when the capital protected

borrowing is at a variable rate.

247-80 Capital protected borrowings in existence on 1 July 2013

(1) This section applies to a capital protected borrowing (including one

covered by Subdivision 247-A or section 247-75):

(a) entered into at or before the 2008 Budget time; and

(b) in existence on 1 July 2013; and

Schedule 2 Capital protected borrowings

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

(2) Work out the amount that is reasonably attributable to the capital

protection using the method statement in subsection 247-75(1) and,

for step 2 in that method statement, using the rate applicable under

either or both of subsections (3) and (5) on or after 1 July 2013.

(3)

If:

(a) the capital protected borrowing is at a fixed rate for all or part

of the term of the capital protected borrowing; and

(b) that fixed rate is applicable to the capital protected borrowing

for all or part of the income year that is on or after 1 July

2013;

use the rate worked out under subsection (4) at the first time an

amount covered by step 1 of that method statement was incurred,

in any income year, while the capital protected borrowing is at that

fixed rate.

(4) The rate (the adjusted loan rate), at a particular time, is the sum of:

(a) the Reserve Bank of Australia's Indicator Lending Rate for

Standard Variable Housing Loans at that time; and

(b) 100 basis points.

(5)

If:

(a) the capital protected borrowing is at a variable rate for all or

part of the term of the capital protected borrowing; and

(b) a variable rate is applicable to the capital protected borrowing

for all or part of the income year that is on or after 1 July

2013;

use the average of the adjusted loan rates applicable during those

parts of the income year when the capital protected borrowing is at

a variable rate.

247-85 Extensions and other changes

(1) This section applies to a capital protected borrowing entered into at

or before the 2008 Budget time (including one covered by

Subdivision 247-A or section 247-75) where, after that time, one or

both of these events occurred:

(a) the term of the capital protected borrowing is extended;

(b) some other change is made to the terms and conditions of the

capital protected borrowing.

Capital protected borrowings Schedule 2

Tax Laws Amendment (2010 Measures No. 5) Bill 2010 No. , 2010 11

(2) Work out the amount that is reasonably attributable to the capital

protection using the method statement in subsection 247-75(1) and,

for step 2 in that method statement, using the rate applicable under

either or both of subsections (3) and (4) from the earlier of these

times:

(a) the time the extension or change took effect;

(b) the start of 1 July 2013;

(the switch-over time).

(3)

If:

(a) the capital protected borrowing is at a fixed rate for all or part

of the term of the capital protected borrowing; and

(b) that fixed rate is applicable to the capital protected borrowing

for all or part of the income year that is at or after the

switch-over time;

use the adjusted loan rate (as described in subsection 247-80(4))

applicable at the first time an amount covered by step 1 of that

method statement was incurred, in any income year, while the

capital protected borrowing is at that fixed rate.

(4)

If:

(a) the capital protected borrowing is at a variable rate for all or

part of the term of the capital protected borrowing; and

(b) a variable rate is applicable to the capital protected borrowing

for all or part of the income year that is at or after the

switch-over time;

use the average of the adjusted loan rates (as described in

subsection 247-80(4)) applicable during those parts of the income

year when the capital protected borrowing is at a variable rate.

Schedule 3 Extending CGT exemption for certain compulsory acquisitions

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

Schedule 3--Extending CGT exemption for

certain compulsory acquisitions

Income Tax Assessment Act 1997

1 At the end of section 118-100

Add:

There is a similar exemption for a CGT event that is a compulsory

acquisition (or similar arrangement) happening to adjacent land but

not also to the dwelling itself.

2 Section 118-105

Repeal the section, substitute:

118-105 Map of this Subdivision

Extending CGT exemption for certain compulsory acquisitions Schedule 3

Tax Laws Amendment (2010 Measures No. 5) Bill 2010 No. , 2010 13

3 At the end of subsection 118-110(1)

Add:

Note 3:

There is a separate rule for a CGT event that is a compulsory

acquisition (or similar arrangement) happening to adjacent land but

not also to the dwelling itself: see section 118-245.

4 Section 118-120

Repeal the section, substitute:

A CGT event

happens to your

dwelling

You are an individual

and did not acquire the

interest as a beneficiary

of a deceased estate

You acquire the interest

as trustee or beneficiary

of a deceased estate

Full exemption

section 118-110

Partial

exemption

section 118-185

Full exemption

section 118-195

Partial

exemption

section 118-200

Adjust if dwelling

used to produce

assessable income

section 118-190

Rules extending the

exemption: sections

118-135 to 118-160

Rules limiting the

exemption: sections

118-165 to 118-180

Event that may

attract exemption

The 2 different

cases

Extent of exemption

depends on whether

dwelling is your main

residence throughout

ownership period

(and on other factors

for deceased estates)

Other rules

that apply

Basic case

Deceased estates

case

Separate exemption for a

compulsory acquisition of

land adjacent to your

dwelling: sections

118-240 to 118-265

Schedule 3 Extending CGT exemption for certain compulsory acquisitions

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

118-120 Extension to adjacent land etc.

Adjacent land

(1) This Subdivision applies to a

dwelling's

adjacent land (if the

same

CGT event happens to that land or your

ownership interest

in it) as if it were a dwelling.

(2) Land adjacent to a

dwelling is its adjacent land to the extent that

the land was used primarily for private or domestic purposes in

association with the dwelling.

(3) The maximum area of

adjacent land covered by the exemption for

the

CGT event (the current event) is 2 hectares, less the area of

the land immediately under the

dwelling.

(4) However, if subsection 118-245(2) applied to you for an earlier

CGT event that happened in relation to:

(a) other land that was part of the

dwelling's

adjacent land at

the time of the earlier CGT event; or

(b)

your

ownership interest in that other land at that time;

the maximum area of land covered by the exemption for the

current event is the

maximum exempt area for the current event

and the dwelling.

Adjacent structures

(5) This Subdivision applies to an

adjacent structure of a flat or home

unit (if the same

CGT event happens to that structure or your

ownership interest in it) as if it were a

dwelling.

(6) A garage, storeroom or other structure associated with a flat or

home unit is an adjacent structure of the flat or home unit to the

extent that the structure was used primarily for private or domestic

purposes in association with the flat or home unit.

5 At the end of section 118-165

Add:

Note:

There is a separate rule for a CGT event that is a compulsory

acquisition (or similar arrangement) happening to adjacent land but

not also to the dwelling itself: see section 118-245.

6 At the end of Subdivision 118-B

Extending CGT exemption for certain compulsory acquisitions Schedule 3

Tax Laws Amendment (2010 Measures No. 5) Bill 2010 No. , 2010 15

Add:

Compulsory acquisitions of adjacent land only

118-240 What the following provisions are about

You can ignore a capital gain or capital loss you make from a

compulsory acquisition (or similar arrangement) that happens only

to land that is adjacent to:

(a)

a dwelling that is your main residence; or

(b)

a dwelling that passed to you as a beneficiary, or

trustee, of a deceased estate;

to the extent that the land was used primarily for private or

domestic purposes in association with the dwelling.

There is a limit on the maximum area of land covered by the

exemption.

Note:

The exemption may not apply in full if the dwelling:

(a) was not always a main residence; or

(b) was used for the purpose of producing assessable income.

118-245 CGT events happening only to adjacent land

Total adjacent land is 2 hectares or less

(1)

capital gain or

capital loss you make from a

CGT event that

happens in relation to land (the exempt land), or your

ownership

interest in it, is disregarded if:

(a) you are an individual; and

(b) the exempt land is all or part of a

dwelling's

adjacent land

at the time of the CGT event; and

and does not happen in relation to your ownership interest in

the dwelling; and

(d) one of the following subparagraphs applies:

(i) the dwelling was your main residence throughout all or

part of your

ownership period of the dwelling;

Schedule 3 Extending CGT exemption for certain compulsory acquisitions

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

(ii) your ownership interest in the dwelling

passed to you

as a beneficiary in a deceased estate;

(iii) you own your ownership interest in the dwelling as the

trustee of a deceased estate; and

(e) section 118-250 (about compulsory acquisitions of adjacent

land) applies to the CGT event and the exempt land; and

(f) the sum of the following is 2 hectares or less:

(i) the area of all of the dwelling's adjacent land at the time

of the CGT event;

(ii) the area of the land immediately under the dwelling;

(iii) if this section applied to you for an earlier CGT event

that involved reducing the area of the dwelling's

adjacent land at the time of that earlier CGT event--that

reduction in area.

Note:

You may get only a partial exemption for the gain or loss (see

section 118-260).

Total adjacent land is more than 2 hectares

(2)

If:

(a) apart from paragraph (1)(f), subsection (1) would apply to the

gain or loss; and

(b) you choose this subsection to apply to the gain or loss;

disregard so much of the gain or loss that relates to land (the

exempt land) within the

maximum exempt area for the

CGT

event and the

dwelling.

Note:

You may get only a partial exemption for this portion of the gain or

loss (see section 118-260).

118-250 Compulsory acquisitions of adjacent land

(1) This section applies to the

CGT event and the exempt land if the

CGT event involves:

(a)

the

compulsory

acquisition of the exempt land by:

(i)

Australian government agency; or

(ii) an entity under a power conferred by an

Australian

law; or

(b)

you

disposing of the exempt land to an entity in

circumstances meeting all of these conditions:

Extending CGT exemption for certain compulsory acquisitions Schedule 3

Tax Laws Amendment (2010 Measures No. 5) Bill 2010 No. , 2010 17

(i) the disposal takes place after a notice was served on you

by or on behalf of the entity;

(ii) the notice invited you to negotiate with the entity with a

view to the entity acquiring the exempt land by

agreement;

(iii) the notice informed you that if the negotiations were

unsuccessful, the exempt land would be compulsorily

acquired by the entity;

(iv) the compulsory acquisition would have been under a

power of compulsory acquisition conferred by an

Australian law.

Note:

For paragraph (b), the entity may be an Australian government

agency.

(2) This section applies to the

CGT event and the exempt land if the

CGT event involves:

(a)

your

ownership interest in the exempt land being

compulsorily cancelled (however described) or varied

(however described) by:

(i)

Australian government agency; or

(ii) an entity under a power conferred by an

Australian

law; or

(b) you surrendering (however described) or varying (however

described) your ownership interest in the exempt land in

circumstances meeting all of these conditions:

(i) the surrender or variation takes place after a notice was

served on you by or on behalf of an entity;

(ii) the notice invited you to negotiate with the entity with a

view to you agreeing to surrender or vary your

ownership interest;

(iii) the notice informed you that if the negotiations were

unsuccessful, your ownership interest would be

compulsorily cancelled, or varied, under a power

conferred by an Australian law.

Note:

For paragraph (b), the entity may be an Australian government

agency.

(3) This section applies to the

CGT event and the exempt land if the

CGT event involves:

(a) an interest or right in or relating to the exempt land being

compulsorily conferred on:

Schedule 3 Extending CGT exemption for certain compulsory acquisitions

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

(i)

Australian government agency; or

(ii) an entity under a power conferred by an

Australian

law; or

(b) you conferring on an entity an interest or right in or relating

to the exempt land in circumstances meeting all of these

conditions:

(i) the conferral takes place after a notice was served on

you by or on behalf of an entity;

(ii) the notice invited you to negotiate with the entity with a

view to you agreeing to confer an interest or right in or

relating to the exempt land;

(iii) the notice informed you that if the negotiations were

unsuccessful, an interest or right in or relating to the

exempt land would be compulsorily conferred on the

entity under a power conferred by an Australian law.

Note:

For paragraph (b), the entity may be an Australian government

agency.

(4) This section applies to the

CGT event and the exempt land if:

(a)

your

ownership interest in the exempt land:

(i) was conferred on you by an

Australian government

agency; and

(ii) had a limited, but renewable, period of operation; and

(b) the CGT event involves that ownership interest not being

renewed by that agency.

118-255 Maximum exempt area

Your

maximum exempt area for the

CGT event and the

dwelling

is 2 hectares less the amount worked out as follows:

Method statement

Step 1. Identify each earlier

CGT event (if any) that:

(a)

happened in relation to land that was part of the

dwelling's

adjacent land at the time of the earlier

CGT event, or happened in relation to your

ownership interest in that land at that time; and

Extending CGT exemption for certain compulsory acquisitions Schedule 3

Tax Laws Amendment (2010 Measures No. 5) Bill 2010 No. , 2010 19

(b)

resulted in you losing rights to the substantial use

and enjoyment of that land either completely or for

at least 10 years;

for which you made a

capital gain or

capital loss that

was wholly or partly disregarded because of the

application of subsection 118-245(2).

Step 2. For each earlier

CGT event covered by step 1, work out

the area of the exempt land for that application of

subsection 118-245(2).

Step 3. Add the results from step 2 to the area of the land

immediately under the

dwelling.

118-260 Partial exemption rules

(1) If section 118-245 applies to a

CGT event, the amount of the

capital gain or

capital loss that you would have made apart from

this section from the CGT event is increased by an amount that is

reasonable having regard to the following:

(a) the extent that the

dwelling was not a main residence for the

relevant period;

(b) the extent that the dwelling was used for the

purpose of

producing assessable income during the relevant period.

(2) In determining what is a reasonable increase, have regard to the

principles in this Subdivision applicable to

CGT events happening

in relation to a

dwelling or your

ownership interest in it.

118-265 Extension to adjacent structures

Sections 118-245 to 118-260 (with appropriate modifications)

apply to an

adjacent structure of a flat or home unit in a

corresponding way to the way they apply to a

dwelling's

adjacent

land.

7 Subsection 995-1(1)

Insert:

adjacent land has the meaning given by subsection 118-120(2).

Schedule 3 Extending CGT exemption for certain compulsory acquisitions

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

8 Subsection 995-1(1)

Insert:

adjacent structure has the meaning given by subsection

118-120(6).

9 Subsection 995-1(1)

Insert:

maximum exempt area has the meaning given by section 118-255.

10 Application provision

(1)

Subject to subitem (2), the amendments made by this Schedule apply in

relation to CGT events happening on or after the day (the

commencement day) this Act receives the Royal Assent.

(2)

You may choose the amendments made by this Schedule to apply in

relation to CGT events relating to you that happen during the period:

(a) starting at the start of the 2004-05 income year; and

(b) ending immediately before the commencement day.

(3)

A choice you can make under subitem (2) must be made:

(a) by the day you lodge your income tax return for the income

year that includes the commencement day; or

(b) within a further time allowed by the Commissioner.

(4)

The way you prepare your income tax return for the applicable income

year is sufficient evidence of the making of a choice under subitem (2).

Deductions in relation to benefits for terminal medical conditions Schedule 4

Tax Laws Amendment (2010 Measures No. 5) Bill 2010 No. , 2010 21

Schedule 4--Deductions in relation to benefits

for terminal medical conditions

Income Tax Assessment Act 1997

1 After paragraph 295-460(a)

Insert:

(aa) a benefit consisting of an amount payable to an individual

because a

terminal medical condition exists in relation to the

individual;

2 Paragraph 295-460(c)

Omit "a person under an income stream because of the person's",

substitute "an individual under an income stream because of the

individual's".

3 Subparagraph 295-470(1)(b)(i)

After "295-460(a)", insert ", (aa)".

4 Subsection 995-1(1) (paragraph (a) of the definition of

disability superannuation benefit)

Omit "a person", substitute "an individual".

5 Subsection 995-1(1) (paragraph (b) of the definition of

disability superannuation benefit)

Omit "person", substitute "individual".

6 Application provision

The amendments made by this Schedule apply in relation to a benefit

provided on or after 16 February 2008.

7 Transitional provision--actuaries' certificates

Subsection 295-465(3) of the Income Tax Assessment Act 1997

(Actuary's certificate) applies to an amount as if the reference in that

subsection to the date for lodgment of a fund's income tax return for an

income year were a reference to the day the fund applies to amend the

fund's assessment for the income year, if:

Schedule 4 Deductions in relation to benefits for terminal medical conditions

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

(a) the relevant premiums are attributable (in whole or in part) to

a liability to provide benefits that are covered by paragraph

295-460(aa) of that Act, as inserted by this Schedule; and

(b) the date for lodgment occurred before the commencement of

this item; and

of the Income Tax Assessment Act 1936.

Non-profit sub-entities Schedule 5

Tax Laws Amendment (2010 Measures No. 5) Bill 2010 No. , 2010 23

Schedule 5--Non-profit sub-entities

A New Tax System (Goods and Services Tax) Act 1999

1 Section 63-25 (after the heading)

Insert:

(1) Subsection 23-15(2) applies in relation to a

non-profit sub-entity

of an entity (the parent entity) whether or not the parent entity is a

non-profit body.

2 Section 63-25

Before "Regulations", insert "(2)".

3 After section 63-25

Insert:

63-27 Application of particular provisions relating to charitable

institutions etc.

Application of particular provisions

(1) For the purposes of the provisions mentioned in subsection (2), a

non-profit sub-entity of an entity (the parent entity) is taken to be

a body of the following type, if the parent entity is a body of that

type:

(a) a non-profit body;

(b) a charitable institution, a trustee of a charitable fund or a

gift-deductible entity;

(c)

government school;

(d)

endorsed charitable institution or an

endorsed trustee of

a charitable fund;

(e) a gift-deductible entity endorsed as a deductible gift recipient

(within the meaning of the

ITAA 1997) under

section 30-120 of the ITAA 1997;

(f) a fund, authority or institution of a kind referred to in

paragraph 30-125(1)(b) of the ITAA 1997;

(g) a body that has a particular

gift-deductible purpose;

(h) a body that operates a particular

retirement village;

Schedule 5 Non-profit sub-entities

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

(i)

particular

school.

(2) The provisions are:

(a) paragraph 9-15(3)(b) (gifts to non-profit bodies not

consideration); and

(b) Subdivision 38-G (Activities of charitable institutions etc.);

and

(d) Subdivision 40-F (fund-raising events); and

(e) section 111-18 (reimbursement of volunteers' expenses); and

(f) section 129-45 (Gifts to gift-deductible entities); and

(g) Division 157 (Accounting basis of charitable institutions

etc.).

(3) To avoid doubt, subsection (1) does not prevent the

non-profit

sub-entity being a body of a particular type merely because the

parent entity is not a body of that type.

4 Application provision

The amendments made by this Schedule apply to tax periods

commencing on or after the day this item commences.

Schedule 7 Education expenses tax offset (uniforms)

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

Schedule 7--Education expenses tax offset

(uniforms)

Income Tax Assessment Act 1997

1 Subsection 61-640(4) (at the end of the table)

Add:

Clothing (including hats) and

footwear that is required or

approved by a primary or secondary

school to be worn as its school

uniform

cost of acquiring (whether by way of

purchase, hire or hire-purchase).

2 Application provision

The amendment made by this Schedule applies to expenses incurred on

or after 1 July 2011.

Commonwealth of Australia Bills

TAX LAWS AMENDMENT (2010 MEASURES NO. 5) BILL 2010