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This is a Bill, not an Act. For current law, see the Acts databases.
2019
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Treasury Laws Amendment (2019 Tax
Integrity and Other Measures No. 1) Bill
2019
No. , 2019
(Treasury)
A Bill for an Act to amend the law relating to
taxation, and for other purposes
No. , 2019
Treasury Laws Amendment (2019 Tax Integrity and Other Measures
No. 1) Bill 2019
i
Contents
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 1
3
Schedules ........................................................................................... 2
Schedule 1--Tax treatment of concessional loans involving tax
exempt entities
3
Income Tax Assessment Act 1936
3
Schedule 2--Enhancing the integrity of the small business CGT
concessions in relation to partnerships
8
Income Tax Assessment Act 1997
8
Schedule 3--Limiting deductions for vacant land
10
Income Tax Assessment Act 1997
10
Schedule 4--Extending anti-avoidance rules for circular trust
distributions
13
Income Tax Assessment Act 1936
13
Taxation Administration Act 1953
14
Schedule 5--Disclosure of business tax debts
15
Income Tax Assessment Act 1997
15
Taxation Administration Act 1953
15
Schedule 6--Electronic invoicing
19
Taxation Administration Act 1953
19
Schedule 7--Salary sacrifice integrity
21
Superannuation Guarantee (Administration) Act 1992
21
No. , 2019
Treasury Laws Amendment (2019 Tax Integrity and Other Measures
No. 1) Bill 2019
1
A Bill for an Act to amend the law relating to
1
taxation, and for other purposes
2
The Parliament of Australia enacts:
3
1 Short title
4
This Act is the Treasury Laws Amendment (2019 Tax Integrity and
5
Other Measures No. 1) Act 2019.
6
2 Commencement
7
(1) Each provision of this Act specified in column 1 of the table
8
commences, or is taken to have commenced, in accordance with
9
column 2 of the table. Any other statement in column 2 has effect
10
according to its terms.
11
12
2
Treasury Laws Amendment (2019 Tax Integrity and Other Measures
No. 1) Bill 2019
No. , 2019
Commencement information
Column 1
Column 2
Column 3
Provisions
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. Schedules 1 to
4
The first 1 January, 1 April, 1 July or
1 October to occur after the day this Act
receives the Royal Assent.
3. Schedules 5 to
7
The day after this Act receives the Royal
Assent.
Note:
This table relates only to the provisions of this Act as originally
1
enacted. It will not be amended to deal with any later amendments of
2
this Act.
3
(2) Any information in column 3 of the table is not part of this Act.
4
Information may be inserted in this column, or information in it
5
may be edited, in any published version of this Act.
6
3 Schedules
7
Legislation 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
Tax treatment of concessional loans involving tax exempt entities Schedule 1
No. , 2019
Treasury Laws Amendment (2019 Tax Integrity and Other Measures
No. 1) Bill 2019
3
Schedule 1--Tax treatment of concessional
1
loans involving tax exempt entities
2
3
Income Tax Assessment Act 1936
4
1 At the end of subsection 57-25(3) in Schedule 2D
5
Add:
6
Note:
If the asset is, or is part of, a Division 230 financial arrangement,
7
section 57-32 may affect how the market value of the asset is worked
8
out.
9
2 At the end of subsection 57-30(2) in Schedule 2D
10
Add:
11
Note:
If the liability is, or is part of, a Division 230 financial arrangement,
12
section 57-32 may affect how the market value of the corresponding
13
right or other asset is worked out.
14
3 After section 57-30 in Schedule 2D
15
Insert:
16
57-32 Division 230 financial arrangements--market value of assets
17
and rights
18
(1) This section applies in relation to an asset (the subject asset) held
19
by an entity (the holder) if:
20
(a) the subject asset is:
21
(i) covered by subsection 57-25(1); or
22
(ii) a right, or other asset, corresponding to a liability
23
covered by subsection 57-30(1); and
24
(b) the subject asset, or the corresponding liability for the subject
25
asset, is or is part of a Division 230 financial arrangement at
26
the transition time; and
27
(c) when the arrangement was entered into:
28
(i) the parties to the arrangement were not dealing at arm's
29
length (within the meaning of the Income Tax
30
Assessment Act 1997) in relation to the subject asset; or
31
Schedule 1 Tax treatment of concessional loans involving tax exempt entities
4
Treasury Laws Amendment (2019 Tax Integrity and Other Measures
No. 1) Bill 2019
No. , 2019
(ii) if the subject asset gives rise to an interest that is not an
1
equity interest in an entity--the return on the interest
2
would reasonably be expected to be less than the
3
benchmark rate of return (within the meaning of that
4
Act) for the interest.
5
(2) For the purposes mentioned in subsection (3), assume at the
6
transition time that the market value of the subject asset is the total
7
amount (the initial amount) of the financial benefits (within the
8
meaning of the Income Tax Assessment Act 1997) that the holder
9
provided in relation to the subject asset before the transition time:
10
(a) reduced by:
11
(i) repayments of principal made in relation to the subject
12
asset before the transition time; and
13
(ii) the amount of any impairment (within the meaning of
14
the accounting principles (within the meaning of that
15
Act)) of the subject asset at the transition time; and
16
(b) increased by the amount of the cumulative amortisation
17
(worked out using the effective interest method recognised
18
by the accounting principles (within the meaning of that
19
Act)) of any difference at the transition time between:
20
(i) the initial amount; and
21
(ii) the amount payable on the maturity of the subject asset.
22
(3) Subsection (2) has effect for the purposes of working out the
23
subject asset's adjusted market value under section 57-25 or 57-30
24
for use when applying Division 230 of the Income Tax Assessment
25
Act 1997 to the subject asset or the corresponding liability for the
26
subject asset.
27
57-33 Division 230 financial arrangements--transition taxpayer's
28
right to receive or obligation to provide payment
29
(1) This section applies in relation to the following:
30
(a) an asset covered by subsection 57-25(1) to which
31
section 57-32 applies;
32
(b) the corresponding liability for a right, or other asset, covered
33
by subsection 57-30(1) to which section 57-32 applies.
34
Note:
Section 57-32 applies if the asset or liability is or is part of a
35
Division 230 financial arrangement.
36
Tax treatment of concessional loans involving tax exempt entities Schedule 1
No. , 2019
Treasury Laws Amendment (2019 Tax Integrity and Other Measures
No. 1) Bill 2019
5
(2) For the purposes of section 230-60 of the Income Tax Assessment
1
Act 1997, assume the following:
2
(a) in the case of an asset--that the transition taxpayer acquired
3
the asset at the transition time in return for the transition
4
taxpayer starting to have an obligation to provide one or
5
more financial benefits in relation to the Division 230
6
financial arrangement;
7
(b) in the case of a liability--that the transition taxpayer started
8
to have the liability at the transition time in return for the
9
transition taxpayer starting to have a right to receive one or
10
more financial benefits under the Division 230 financial
11
arrangement.
12
4 At the end of Division 57 in Schedule 2D
13
Add:
14
Subdivision 57-P--Balancing adjustment on ceasing to have a
15
Division 230 financial arrangement
16
57-135 Balancing adjustment on ceasing to have a Division 230
17
financial arrangement referred to in section 57-32
18
(1) This section applies if:
19
(a) section 57-32 was applied to work out the market value of an
20
asset (the subject asset); and
21
(b) the transition taxpayer is a party to the Division 230 financial
22
arrangement (the financial arrangement) to which the
23
subject asset, or the corresponding liability for the subject
24
asset, is or is part of; and
25
(c) a balancing adjustment is made under Subdivision 230-G of
26
the Income Tax Assessment Act 1997, after the transition
27
time, in relation to the financial arrangement.
28
(2) For the purposes of making the balancing adjustment under
29
Subdivision 230-G of the Income Tax Assessment Act 1997 in
30
relation to the financial arrangement, adjust the amount worked out
31
using the method statement (the method statement) in
32
subsection 230-445(1) of that Act by:
33
Schedule 1 Tax treatment of concessional loans involving tax exempt entities
6
Treasury Laws Amendment (2019 Tax Integrity and Other Measures
No. 1) Bill 2019
No. , 2019
(a) if the transition taxpayer is the holder of the subject asset--
1
increasing any gain or reducing any loss by the amount
2
worked out under subsection (4) of this section; or
3
(b) if the transition taxpayer is the holder of the corresponding
4
liability for the subject asset--reducing any gain or
5
increasing any loss by the amount worked out under
6
subsection (4) of this section.
7
(3) Despite subsection (2):
8
(a) if the amount worked out under subsection (4) exceeds the
9
amount of the loss to be reduced under paragraph (2)(a)--the
10
transition taxpayer is taken, for the purposes of making the
11
balancing adjustment, to have made a gain equal to the
12
amount of the excess; or
13
(b) if the amount worked out under subsection (4) exceeds the
14
amount of the gain to be reduced under paragraph (2)(b)--the
15
transition taxpayer is taken, for the purposes of making the
16
balancing adjustment, to have made a loss equal to the
17
amount of the excess; or
18
(c) if when applying the method statement no balancing
19
adjustment is made in relation to the financial arrangement--
20
the transition taxpayer is taken, for the purposes of making
21
the balancing adjustment, to have:
22
(i) if the transition taxpayer is the holder of the subject
23
asset--made a gain equal to the amount worked out
24
under subsection (4); or
25
(ii) if the transition taxpayer is the holder of the
26
corresponding liability for the subject asset--made a
27
loss equal to the amount worked out under
28
subsection (4).
29
(4) For the purposes of subsections (2) and (3), the amount is the
30
difference between:
31
(a) the amount that the transition taxpayer would need to receive
32
or pay under the financial arrangement without an amount
33
being assessable income of, or deductible to, the transition
34
taxpayer if the subject asset, or the corresponding liability for
35
the subject asset, were disposed of at the time the balancing
36
adjustment is made; and
37
Tax treatment of concessional loans involving tax exempt entities Schedule 1
No. , 2019
Treasury Laws Amendment (2019 Tax Integrity and Other Measures
No. 1) Bill 2019
7
(b) the amount that the transition taxpayer would need to receive
1
or pay under the financial arrangement without an amount
2
being assessable income of, or deductible to, the transition
3
taxpayer if:
4
(i) the subject asset, or the corresponding liability for the
5
subject asset, were disposed of at the time the balancing
6
adjustment is made; and
7
(ii) the assumptions in subsection (5) were made.
8
(5) The assumptions referred to in subparagraph (4)(b)(ii) are that,
9
when the financial arrangement was entered into:
10
(a) the parties to the arrangement were dealing with each other at
11
arm's length (within the meaning of the Income Tax
12
Assessment Act 1997) in relation to the arrangement; and
13
(b) if the arrangement gives rise to an interest that is not an
14
equity interest in an entity--the return on the interest would
15
reasonably be expected to be equal to the benchmark rate of
16
return (within the meaning of the Income Tax Assessment Act
17
1997) for the interest.
18
(6) This section applies despite section 230-510 of the Income Tax
19
Assessment Act 1997.
20
5 Application of amendments
21
The amendments made by this Schedule apply if the transition time is at
22
or after 7.30 pm, by legal time in the Australian Capital Territory, on
23
8 May 2018.
24
Schedule 2 Enhancing the integrity of the small business CGT concessions in relation
to partnerships
8
Treasury Laws Amendment (2019 Tax Integrity and Other Measures
No. 1) Bill 2019
No. , 2019
Schedule 2--Enhancing the integrity of the
1
small business CGT concessions in
2
relation to partnerships
3
4
Income Tax Assessment Act 1997
5
1 Section 152-5
6
Omit:
7
Additional basic conditions must be satisfied if the CGT asset is a
8
share in a company or an interest in a trust.
9
substitute:
10
Additional basic conditions must be satisfied in the following
11
circumstances:
12
(a)
the CGT asset is a share in a company or an interest in a
13
trust;
14
(b)
the CGT event involves certain rights or interests in
15
relation to the income or capital of a partnership.
16
2 After subsection 152-10(2B)
17
Insert:
18
Additional basic condition for CGT events involving certain rights
19
or interests in relation to the income or capital of a partnership
20
(2C) If the
*
CGT event involves the creation, transfer, variation or
21
cessation of a right or interest that would entitle an entity to:
22
(a) an amount of the income or capital of a partnership; or
23
(b) an amount calculated by reference to a partner's entitlement
24
to an amount of income or capital of a partnership;
25
it is an additional basic condition that the right or interest is a
26
*
membership interest of the entity in the partnership:
27
(c) immediately after the CGT event happens; or
28
Enhancing the integrity of the small business CGT concessions in relation to
partnerships Schedule 2
No. , 2019
Treasury Laws Amendment (2019 Tax Integrity and Other Measures
No. 1) Bill 2019
9
(d) if the CGT event involved the cessation of the right or
1
interest--immediately before the CGT event happens.
2
3 Application
3
The amendments made by this Schedule apply in relation to CGT
4
events happening after 7.30 pm, by legal time in the Australian Capital
5
Territory, on 8 May 2018.
6
Schedule 3 Limiting deductions for vacant land
10
Treasury Laws Amendment (2019 Tax Integrity and Other Measures
No. 1) Bill 2019
No. , 2019
Schedule 3--Limiting deductions for vacant
1
land
2
3
Income Tax Assessment Act 1997
4
1 Section 12-
5 (before table item headed "land degradation")
5
Insert:
6
land
land degradation, see primary production
vacant land, limit on deduction .......................................... 26-102
2 Section 12-
5 (table item headed "land degradation")
7
Repeal the item.
8
3 After section 26-100
9
Insert:
10
26-102 Expenses associated with holding vacant land
11
Limit on deduction
12
(1) If:
13
(a) at a particular time, you incur a loss or outgoing relating to
14
holding land (including interest or any other ongoing costs of
15
borrowing to acquire the land); and
16
(b) at the earlier of the following (the critical time):
17
(i) that time;
18
(ii) if you have ceased to hold the land--the time just before
19
you ceased to hold the land;
20
there is no substantial and permanent structure in use or
21
available for use on the land having a purpose that is
22
independent of, and not incidental to, the purpose of any
23
other structure or proposed structure;
24
you can only deduct under this Act the loss or outgoing to the
25
extent that the land is in use, or available for use, in carrying on a
26
business covered by subsection (2) at the time applying under
27
subsection (3).
28
Limiting deductions for vacant land Schedule 3
No. , 2019
Treasury Laws Amendment (2019 Tax Integrity and Other Measures
No. 1) Bill 2019
11
Note 1:
The ordinary meaning of structure includes a building and anything
1
else built or constructed.
2
Note 2:
The land need not be all of the land under a land title.
3
(2) A
*
business is covered by this subsection if the business is carried
4
on for the purpose of gaining or producing the assessable income
5
of one or more of the following entities:
6
(a) you;
7
(b) your
*
affiliate, or an entity of which you are an affiliate;
8
(c) if you are an individual--your
*
spouse, or any of your
9
*
children who is under 18 years of age;
10
(d) an entity
*
connected with you.
11
(3) The time applying under this subsection is the critical time unless:
12
(a) the business referred to in subsection (1) ceases before the
13
critical time; and
14
(b) the loss or outgoing is otherwise deductible because of the
15
use or availability for use of the land at an earlier time or
16
during an earlier period; and
17
(c) at that earlier time or during that earlier period the land was
18
in use or available for use in carrying on that business;
19
in which case the time applying under this subsection is that earlier
20
time or the end of that earlier period.
21
Disregard certain residential premises if not rented etc.
22
(4) For the purposes of paragraph (1)(b), treat a building as not being a
23
substantial and permanent structure if it is
*
residential premises
24
constructed, or
*
substantially renovated, while you hold the land
25
unless:
26
(a) the residential premises are lawfully able to be occupied; and
27
(b) the residential premises are:
28
(i) leased, hired or licensed; or
29
(ii) available for lease, hire or licence.
30
Note:
If all of the structures on the land are disregarded under this
31
subsection, then subsection (1) may deny you a deduction for a loss or
32
outgoing relating to the land.
33
Schedule 3 Limiting deductions for vacant land
12
Treasury Laws Amendment (2019 Tax Integrity and Other Measures
No. 1) Bill 2019
No. , 2019
Exception--kind of entity
1
(5) Subsection (1) does not stop you deducting a loss or outgoing if, at
2
any time during the income year in which the loss or outgoing is
3
incurred, you are:
4
(a) a
*
corporate tax entity; or
5
(b) a
*
superannuation plan that is not a
*
self managed
6
superannuation fund; or
7
(c) a
*
managed investment trust; or
8
(d) a public unit trust (within the meaning of section 102P of the
9
Income Tax Assessment Act 1936); or
10
(e) a unit trust or partnership, if each
*
member of the trust or
11
partnership is covered by a paragraph of this subsection at
12
that time during the income year.
13
4 Application of amendments
14
The amendments made by this Schedule apply in relation to losses or
15
outgoings incurred on or after 1 July 2019 (whether the applicable land
16
is acquired before, on or after 1 July 2019).
17
Extending anti-avoidance rules for circular trust distributions Schedule 4
No. , 2019
Treasury Laws Amendment (2019 Tax Integrity and Other Measures
No. 1) Bill 2019
13
Schedule 4--Extending anti-avoidance rules
1
for circular trust distributions
2
3
Income Tax Assessment Act 1936
4
1 Subsection 102UC(4) (paragraph (b) of the definition of
5
excluded trust)
6
Omit "Limited; or", substitute "Limited.".
7
2 Subsection 102UC(4) (paragraphs (c), (d) and (e) of the
8
definition of excluded trust)
9
Repeal the paragraphs.
10
3 After paragraph 102UK(1)(c)
11
Insert:
12
(ca) the closely held trust is none of the following:
13
(i) a family trust (within the meaning of section 272-75 in
14
Schedule 2F);
15
(ii) a trust in relation to which an interposed entity election
16
has been made and is in force in accordance with
17
section 272-85 in Schedule 2F;
18
(iii) a trust covered by subsection 272-90(5) in Schedule 2F;
19
and
20
4 After paragraph 102UT(1)(b)
21
Insert:
22
and (c) the closely held trust is none of the following:
23
(i) a family trust (within the meaning of section 272-75 in
24
Schedule 2F);
25
(ii) a trust in relation to which an interposed entity election
26
has been made and is in force in accordance with
27
section 272-85 in Schedule 2F;
28
(iii) a trust covered by subsection 272-90(5) in Schedule 2F;
29
Schedule 4 Extending anti-avoidance rules for circular trust distributions
14
Treasury Laws Amendment (2019 Tax Integrity and Other Measures
No. 1) Bill 2019
No. , 2019
Taxation Administration Act 1953
1
5 Subparagraph 12-175(1)(c)(ii) in Schedule 1
2
Omit ", disregarding paragraphs (c), (d) and (e) of the definition of
3
excluded trust in subsection (4) of that section".
4
6 Application of amendments
5
The amendments made by this Schedule apply in relation to years of
6
income starting on or after 1 July 2019.
7
Disclosure of business tax debts Schedule 5
No. , 2019
Treasury Laws Amendment (2019 Tax Integrity and Other Measures
No. 1) Bill 2019
15
Schedule 5--Disclosure of business tax debts
1
2
Income Tax Assessment Act 1997
3
1 Subsection 995-1(1)
4
Insert:
5
credit reporting bureau has the meaning given by
6
subsection 355-72(7) in Schedule 1 to the Taxation Administration
7
Act 1953.
8
Taxation Administration Act 1953
9
2 After section 355-70 in Schedule 1
10
Insert:
11
355-72 Exception--disclosure to credit reporting bureaus
12
Exception--entities in declared class of entities
13
(1) Section 355-25 does not apply if:
14
(a) the entity is a
*
taxation officer; and
15
(b) the record is made for, or the disclosure is to, a
*
credit
16
reporting bureau; and
17
(c) the record or disclosure is of information that relates to the
18
*
tax debts of an entity (the primary entity) that is included in
19
a class of entities declared under subsection (5) of this
20
section; and
21
(d) the record or disclosure is for the purpose of enabling the
22
credit reporting bureau to prepare, issue, update, correct or
23
confirm credit worthiness reports in relation to the primary
24
entity; and
25
(e) in the case of a disclosure of information other than for the
26
purposes of updating, correcting or confirming information
27
previously disclosed under this exception--both:
28
(i) the Inspector-General of Taxation has been consulted on
29
the disclosure; and
30
Schedule 5 Disclosure of business tax debts
16
Treasury Laws Amendment (2019 Tax Integrity and Other Measures
No. 1) Bill 2019
No. , 2019
(ii) 21 days have passed after a notice under subsection (2)
1
of this section was given to the primary entity for the
2
disclosure.
3
Note:
A defendant bears an evidential burden in relation to the matters in
4
this subsection: see subsection 13.3(3) of the Criminal Code.
5
Notice of disclosure
6
(2) The Commissioner must notify a primary entity if:
7
(a) information that relates to the primary entity is to be
8
disclosed to a
*
credit reporting bureau under this section; and
9
(b) the information is not information that updates, corrects or
10
confirms the information previously disclosed under the
11
exception in subsection (1).
12
(3) The notice must:
13
(a) be in writing; and
14
(b) explain the type of information that is to be disclosed to the
15
*
credit reporting bureau; and
16
(c) set out the amount of any
*
tax debts payable by the primary
17
entity at the time the notice is given by the Commissioner;
18
and
19
(d) explain how the primary entity may make a complaint in
20
relation to the proposed disclosure of the entity's
21
information; and
22
(e) be served on the primary entity.
23
Exception--entities no longer in declared class of entities
24
(4) Section 355-25 does not apply if:
25
(a) the entity is a
*
taxation officer; and
26
(b) the record is made for, or the disclosure is to, a
*
credit
27
reporting bureau; and
28
(c) the record or disclosure is of information that relates to the
29
*
tax debts of an entity that:
30
(i) has had information previously disclosed under the
31
exception in subsection (1) of this section; and
32
Disclosure of business tax debts Schedule 5
No. , 2019
Treasury Laws Amendment (2019 Tax Integrity and Other Measures
No. 1) Bill 2019
17
(ii) is no longer an entity that is included in a class of
1
entities declared under subsection (5) of this section;
2
and
3
(d) the record or disclosure is of information that relates to why
4
the entity to which the information relates is no longer
5
included in a class of entities declared under subsection (5) of
6
this section; and
7
(e) the record or disclosure is for the purpose of enabling the
8
credit reporting bureau to update or correct credit worthiness
9
reports in relation to the entity to which the information
10
relates.
11
Note:
A defendant bears an evidential burden in relation to the matters in
12
this subsection: see subsection 13.3(3) of the Criminal Code.
13
Class of entities
14
(5) The Minister may, by legislative instrument, declare one or more
15
classes of entities for the purposes of this section.
16
(6) Before making an instrument under subsection (5), the Minister
17
must:
18
(a) consult the Information Commissioner in relation to matters
19
that relate to the privacy functions (within the meaning of the
20
Australian Information Commissioner Act 2010) and would
21
be affected by the proposed instrument; and
22
(b) consider any submissions made by the Information
23
Commissioner because of that consultation.
24
Credit reporting bureau
25
(7) An entity is a credit reporting bureau if the entity is recognised by
26
the Commissioner as an entity that prepares and issues credit
27
worthiness reports in relation to other entities.
28
(8) The Commissioner must keep and publish a list of credit reporting
29
bureaus on the Australian Taxation Office website.
30
(9) The list of credit reporting bureaus is not a legislative instrument.
31
3 At the end of Subdivision 355-C in Schedule 1
32
Add:
33
Schedule 5 Disclosure of business tax debts
18
Treasury Laws Amendment (2019 Tax Integrity and Other Measures
No. 1) Bill 2019
No. , 2019
355-215 Exception--on-disclosure of information disclosed to credit
1
reporting bureaus
2
Section 355-155 does not apply if:
3
(a) the information was originally disclosed under the exception
4
in subsection 355-72(1) or (4); and
5
(b) the information was acquired by the entity under that
6
exception or the exception in section 355-175; and
7
(c) when making the record, or disclosing the information, the
8
entity is not:
9
(i) a
*
credit reporting bureau; or
10
(ii) an entity appointed or employed by, or otherwise
11
performing services for, a credit reporting bureau.
12
Note:
A defendant bears an evidential burden in relation to the matters in
13
this section: see subsection 13.3(3) of the Criminal Code.
14
4 Application of amendments
15
The amendments made by this Schedule apply in relation to records and
16
disclosures of information made on or after the commencement of this
17
Schedule, regardless of when the information was acquired.
18
Electronic invoicing Schedule 6
No. , 2019
Treasury Laws Amendment (2019 Tax Integrity and Other Measures
No. 1) Bill 2019
19
Schedule 6--Electronic invoicing
1
2
Taxation Administration Act 1953
3
1 Title
4
Omit "purposes connected therewith", substitute "other purposes".
5
2 At the end of Part IA
6
Add:
7
3G Electronic invoicing
8
(1) The Commissioner's functions include the function of developing
9
and/or administering a framework or system for electronic
10
invoicing.
11
(2) Without limiting subsection (1), the Commissioner may develop
12
the framework or system by adopting (with appropriate
13
modifications) a framework or system for electronic invoicing
14
operating outside Australia.
15
(3) The Commissioner has power to do all things that are necessary or
16
convenient to be done for or in connection with the performance of
17
the Commissioner's functions under this section.
18
(4) Without limiting subsection (3), the Commissioner's powers under
19
that subsection include:
20
(a) entering into agreements for integrating the framework or
21
system for electronic invoicing mentioned in subsection (1)
22
with frameworks or systems for electronic invoicing that
23
operate outside Australia; and
24
(b) entering into agreements for accessing the framework or
25
system for electronic invoicing mentioned in subsection (1);
26
and
27
(c) liaising with:
28
(i) foreign countries; and
29
(ii) agencies, and other entities, of foreign countries;
30
Schedule 6 Electronic invoicing
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Treasury Laws Amendment (2019 Tax Integrity and Other Measures
No. 1) Bill 2019
No. , 2019
to develop common approaches to electronic invoices
1
between countries.
2
(5) This section does not limit any functions or powers the
3
Commissioner has apart from this section.
4
Salary sacrifice integrity Schedule 7
No. , 2019
Treasury Laws Amendment (2019 Tax Integrity and Other Measures
No. 1) Bill 2019
21
Schedule 7--Salary sacrifice integrity
1
2
Superannuation Guarantee (Administration) Act 1992
3
1 Subsection 6(1)
4
Insert:
5
quarterly salary or wages base, for an employer in respect of an
6
employee, for a quarter has the meaning given by subsection 19(1).
7
sacrificed contribution means a contribution to a complying
8
superannuation fund or an RSA made under a salary sacrifice
9
arrangement.
10
sacrificed ordinary time earnings amount has the meaning given
11
by subsection 15A(2).
12
sacrificed salary or wages amount has the meaning given by
13
subsection 15A(2).
14
salary sacrifice arrangement has the meaning given by
15
subsection 15A(1).
16
2 At the end of Part 2
17
Add:
18
15A Interpretation: salary sacrifice arrangements
19
Salary sacrifice arrangement
20
(1) An arrangement under which a contribution is, or is to be, made to
21
a complying superannuation fund or an RSA by an employer for
22
the benefit of an employee is a salary sacrifice arrangement if the
23
employee agreed:
24
(a) for the contribution to be made; and
25
(b) in return, for either or both of the following amounts to be
26
reduced (including to nil):
27
(i) the ordinary time earnings of the employee;
28
(ii) the salary or wages of the employee.
29
Schedule 7 Salary sacrifice integrity
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Treasury Laws Amendment (2019 Tax Integrity and Other Measures
No. 1) Bill 2019
No. , 2019
Sacrificed amounts
1
(2) If an amount mentioned in subparagraph (1)(b)(i) or (ii) is reduced
2
under a salary sacrifice arrangement, the amount of that reduction
3
is:
4
(a) if ordinary time earnings for a quarter are reduced--a
5
sacrificed ordinary time earnings amount of the employee
6
for the quarter in respect of the employer; and
7
(b) if salary or wages for a quarter are reduced--a sacrificed
8
salary or wages amount of the employee for the quarter in
9
respect of the employer.
10
Excluded salary or wages
11
(3) In working out the amount of a reduction for the purposes of
12
subsection (2), disregard any amounts that, had they been paid to
13
the employee (instead of being reduced), would have been
14
excluded salary or wages.
15
(4) For the purposes of this section, excluded salary or wages are
16
salary or wages that, under section 27 or 28, are not to be taken
17
into account for the purpose of making a calculation under
18
section 19.
19
3 Subsection 19(1) (formula)
20
Repeal the formula, substitute:
21
Charge percentage for
the employer
Quarterly salary or wages base,
for the quarter
for the employer in respect of the employee,
100
for the quarter
22
4 At the end of subsection 19(1)
23
Add:
24
quarterly salary or wages base, for an employer in respect of an
25
employee, for a quarter means the sum of:
26
(a) the total salary or wages paid by the employer to the
27
employee for the quarter; and
28
(b) any sacrificed salary or wages amounts of the employee for
29
the quarter in respect of the employer.
30
Salary sacrifice integrity Schedule 7
No. , 2019
Treasury Laws Amendment (2019 Tax Integrity and Other Measures
No. 1) Bill 2019
23
5 Subsection 19(3)
1
Repeal the subsection, substitute:
2
(3) For the purposes of the definition of quarterly salary or wages
3
base in subsection (1), disregard an amount in a quarter if:
4
(a) the amount would be covered by paragraph (a) of that
5
definition for the quarter (about amounts paid to the
6
employee); but
7
(b) the amount is taken into account under paragraph (b) of that
8
definition (about sacrificed salary or wages amounts) for any
9
quarter.
10
Note:
This prevents double counting if a sacrificed salary or wages amount
11
is later paid as salary or wages, instead of being contributed to
12
superannuation.
13
(4) If the quarterly salary or wages base, for an employer in respect of
14
an employee, for a quarter exceeds the maximum contribution base
15
for the quarter, the employer's quarterly salary or wages base to be
16
taken into account for the purposes of the application of
17
subsection (1) in relation to the quarter is the amount equal to the
18
maximum contribution base.
19
6 Subsection 23(2)
20
Omit "contributes", substitute "makes a contribution (other than a
21
sacrificed contribution)".
22
7 Subsection 23(2) (formula)
23
Repeal the formula, substitute:
24
Contribution
100
Ordinary time earnings base
25
8 Subsection 23(2) (definition of ordinary time earnings)
26
Repeal the definition (including the example).
27
9 Subsection 23(2)
28
Insert:
29
ordinary time earnings base is the number of dollars in the sum of:
30
Schedule 7 Salary sacrifice integrity
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Treasury Laws Amendment (2019 Tax Integrity and Other Measures
No. 1) Bill 2019
No. , 2019
(a) the ordinary time earnings of the employee for the quarter in
1
respect of the employer; and
2
(b) any sacrificed ordinary time earnings amounts, of the
3
employee for the quarter in respect of the employer.
4
10 After subsection 23(7)
5
Insert:
6
Sacrificed ordinary time earnings amounts taken into account in a
7
quarter not to be taken into account for any other quarter
8
(7A) For the purposes of the definition of ordinary time earnings base
9
in subsection (2), disregard an amount in a quarter if:
10
(a) the amount would be covered by paragraph (a) of that
11
definition for the quarter (about ordinary time earnings of the
12
employee); but
13
(b) the amount is taken into account under paragraph (b) of that
14
definition (about sacrificed ordinary time earnings amounts)
15
for any quarter.
16
Note:
This prevents double counting if a sacrificed ordinary time earnings
17
amount is later paid as ordinary time earnings, instead of being
18
contributed to superannuation.
19
11 Subsection 23(12) (heading)
20
Repeal the heading, substitute:
21
Reduction of ordinary time earnings base if amount excluded from
22
employee's salary or wages
23
12 Subsection 23(12)
24
After "ordinary time earnings", insert "base".
25
13 Subsection 23(12)
26
Omit "are", substitute "is".
27
14 Subsection 23A(1)
28
After "A contribution", insert "(other than a sacrificed contribution)".
29
Salary sacrifice integrity Schedule 7
No. , 2019
Treasury Laws Amendment (2019 Tax Integrity and Other Measures
No. 1) Bill 2019
25
15 Section 23B
1
Before "For", insert "(1)".
2
16 Section 23B
3
Omit "sections 23 and 23A", substitute "a provision covered by
4
subsection (2)".
5
17 At the end of section 23B
6
Add:
7
(2) The provisions are as follows:
8
(a) section 15A (which deals with salary sacrifice arrangements);
9
(b) section 23 (which deals with reduction of charge percentage);
10
(c) section 23A (which deals with offsetting late payments
11
against an employer's liability to pay superannuation
12
guarantee charge).
13
18 Application
14
The amendments made by this Schedule apply in relation to working
15
out an employer's superannuation guarantee shortfall for quarters
16
beginning on or after 1 July 2020.
17