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This is a Bill, not an Act. For current law, see the Acts databases.
2022-2023
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Treasury Laws Amendment (2023
Measures No. 2) Bill 2023
No. , 2023
(Treasury)
A Bill for an Act to amend the law relating to
taxation and housing, and to amend the
Commonwealth Banks Act 1959
, and for related
purposes
No. , 2023
Treasury Laws Amendment (2023 Measures No. 2) Bill 2023
i
Contents
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 1
3
Schedules ........................................................................................... 2
Schedule 1
--
Medicare levy and Medicare levy surcharge
income thresholds
3
A New Tax System (Medicare Levy Surcharge
--
Fringe Benefits) Act
1999
3
Medicare Levy Act 1986
3
Schedule 2
--
Maintaining the Commonwealth Bank
superannuation fund guarantee
5
Commonwealth Banks Act 1959
5
Schedule 3
--
Tax accounting for primary producer registered
emissions units
6
Income Tax Assessment Act 1997
6
Schedule 4
--
Cash flow relief for small and medium businesses
11
Part 1
--
Amendments
11
Taxation Administration Act 1953
11
Part 2
--
Sunsetting
12
Taxation Administration Act 1953
12
Schedule 5
--
Enhancements to the Home Guarantee Scheme
13
National Housing Finance and Investment Corporation Act 2018
13
No. , 2023
Treasury Laws Amendment (2023 Measures No. 2) Bill 2023
1
A Bill for an Act to amend the law relating to
1
taxation and housing, and to amend the
2
Commonwealth Banks Act 1959
, and for related
3
purposes
4
The Parliament of Australia enacts:
5
1 Short title
6
This Act is the
Treasury Laws Amendment (2023 Measures No. 2)
7
Act 2023
.
8
2 Commencement
9
(1) Each provision of this Act specified in column 1 of the table
10
commences, or is taken to have commenced, in accordance with
11
2
Treasury Laws Amendment (2023 Measures No. 2) Bill 2023
No. , 2023
column 2 of the table. Any other statement in column 2 has effect
1
according to its terms.
2
3
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
and 2
The day after this Act receives the Royal
Assent.
3. Schedule 3
The first 1 January, 1 April, 1 July or
1 October to occur after the day this Act
receives the Royal Assent.
4. Schedule 4,
Part 1
The day after this Act receives the Royal
Assent.
5. Schedule 4,
Part 2
1 July 2028.
1 July 2028
6. Schedule 5
The later of:
(a) 1 July 2023; and
(b) the day after this Act receives the Royal
Assent.
Note:
This table relates only to the provisions of this Act as originally
4
enacted. It will not be amended to deal with any later amendments of
5
this Act.
6
(2) Any information in column 3 of the table is not part of this Act.
7
Information may be inserted in this column, or information in it
8
may be edited, in any published version of this Act.
9
3 Schedules
10
Legislation that is specified in a Schedule to this Act is amended or
11
repealed as set out in the applicable items in the Schedule
12
concerned, and any other item in a Schedule to this Act has effect
13
according to its terms.
14
Medicare levy and Medicare levy surcharge income thresholds
Schedule 1
No. , 2023
Treasury Laws Amendment (2023 Measures No. 2) Bill 2023
3
Schedule
1--Medicare levy and Medicare levy
1
surcharge income thresholds
2
3
A New Tax System (Medicare Levy Surcharge--Fringe
4
Benefits) Act 1999
5
1 Paragraphs 15(1)(c) and 16(2)(c)
6
Omit "$23,365", substitute "$24,276".
7
Medicare Levy Act 1986
8
2 Subsection 3(1) (paragraph (a) of the definition of
phase-in
9
limit
)
10
Omit "$46,156", substitute "$47,956".
11
3 Subsection 3(1) (paragraph (c) of the definition of
phase-in
12
limit
)
13
Omit "$29,206", substitute "$30,345".
14
4 Subsection 3(1) (paragraph (a) of the definition of
threshold
15
amount
)
16
Omit
"$36,925", substitute "$38,365".
17
5 Subsection 3(1) (paragraph (c) of the definition of
threshold
18
amount
)
19
Omit "$23,365", substitute "$24,276".
20
6 Subsection 8(5) (definition of
family income threshold
)
21
Omit "$39,402", substitute "$40,939".
22
7 Subsection 8(5) (definition of
family income threshold
)
23
Omit "$3,619", substitute "$3,760".
24
8 Subsections 8(6) and (7)
25
Omit "$39,402", substitute "$40,939".
26
Schedule 1
Medicare levy and Medicare levy surcharge income thresholds
4
Treasury Laws Amendment (2023 Measures No. 2) Bill 2023
No. , 2023
9 Subsection 8(7)
1
Omit "$51,401", substitute "$53,406".
2
10 Paragraph 8D(3)(c)
3
Omit "$23,365", substitute "$24,276".
4
11 Subparagraph 8D(4)(a)(ii)
5
Omit "$23,365", substitute "$24,276".
6
12 Paragraph 8G(2)(c)
7
Omit "$23,365", substitute "$24,276".
8
13 Subparagraph 8G(3)(a)(ii)
9
Omit "$23,365", substitute "$24,276".
10
14 Application of amendments
11
The amendments made by this Schedule apply to assessments for the
12
2022-23 year of income and later years of income.
13
Maintaining the Commonwealth Bank superannuation fund guarantee
Schedule 2
No. , 2023
Treasury Laws Amendment (2023 Measures No. 2) Bill 2023
5
Schedule
2--Maintaining the Commonwealth
1
Bank superannuation fund guarantee
2
3
Commonwealth Banks Act 1959
4
1 After subsection 117(3)
5
Insert:
6
(3A) If:
7
(a) immediately before the day (the
commencement day
) that
8
Schedule 1 to the
Treasury Laws Amendment (2023
9
Measures No. 2) Act 2023
commences a person holds an
10
interest in the superannuation fund; and
11
(b) immediately before the commencement day the
12
Commonwealth guarantees under subsection (3) the due
13
payment of any amount in respect of the person; and
14
(c) on or after the commencement day:
15
(i) the interest is transferred from the superannuation fund
16
to a successor fund (within the meaning of the
Income
17
Tax Assessment Act 1997
); and
18
(ii) the successor fund is a regulated superannuation fund;
19
then, so long as the person continues to hold an interest in the
20
successor fund, the Commonwealth guarantees the due payment of
21
any amount that is payable to or from the successor fund, by the
22
trustee of the successor fund or by the Commonwealth Bank, in
23
respect of the person.
24
(3B) Disregard subsection (3) when determining whether a regulated
25
superannuation fund confers on a person equivalent rights in
26
respect of an interest to the rights they had under another regulated
27
superannuation fund in respect of the interest for the purposes of
28
any law of the Commonwealth dealing with successor funds.
29
2 Subsection 117(4)
30
Insert:
31
regulated superannuation fund
has the same meaning as in the
32
Superannuation Industry (Supervision) Act 1993
.
33
Schedule 3
Tax accounting for primary producer registered emissions units
6
Treasury Laws Amendment (2023 Measures No. 2) Bill 2023
No. , 2023
Schedule
3--Tax accounting for primary
1
producer registered emissions units
2
3
Income Tax Assessment Act 1997
4
1 Subsection 392-45(2)
5
Repeal the subsection, substitute:
6
(2) Your
basic assessable income
for an income year is your
7
assessable income for the income year, less:
8
(a) any amount included in your assessable income under
9
section 82-65, 82-70 or 302-145 (certain employment
10
termination payments and superannuation benefits); and
11
(b) any
*
net capital gain included in your assessable income
12
under Division 102.
13
2 Subsections 392-80(2) and (3)
14
Repeal the subsections, substitute:
15
Assessable primary production income
16
(2) Your
assessable primary production income
for the
*
current year
17
is the sum of:
18
(a) any amount of your
*
basic assessable income for the current
19
year that was
*
derived from, or resulted from, your carrying
20
on a
*
primary production business; and
21
(b) any amount included in your assessable income under
22
section 420-25 for the current year because you cease to
23
*
hold a
*
primary producer registered emissions unit; and
24
(c) any amount of your basic assessable income for the current
25
year to the extent that:
26
(i) you are a beneficiary of a trust that is carrying on a
27
primary production business; and
28
(ii)
the amount is your share of the trust's
*
net income that
29
is attributable to, or resulted from, an amount being
30
included in the trust's assessable income under
31
section 420-25 because the trust ceases to hold an
32
*
Australian carbon credit unit; and
33
Tax accounting for primary producer registered emissions units
Schedule 3
No. , 2023
Treasury Laws Amendment (2023 Measures No. 2) Bill 2023
7
(iii) the unit would have been a primary producer registered
1
emissions unit if you had started to hold, held and
2
ceased to hold the unit instead of the trust; and
3
(d) any amount of your basic assessable income for the current
4
year to the extent that:
5
(i) you are a partner in a partnership that is carrying on a
6
primary production business; and
7
(ii)
the amount is your share of the partnership's net income
8
that is attributable to, or resulted from, an amount being
9
included in the partnership's assessable
income under
10
section 420-25 because a partner (the
holding partner
)
11
in the partnership ceases to hold a primary producer
12
registered emissions unit; and
13
(iii) the unit would still have been a primary producer
14
registered emissions unit if each other partner in the
15
partnership had started to hold, held and ceased to hold
16
the unit instead of the holding partner; and
17
(e) any amount of your basic assessable income for the current
18
year that was derived from, or resulted from, an
*
arrangement
19
with a
*
carbon service provider to the extent that:
20
(i) the arrangement relates to the provider starting to hold,
21
holding or ceasing to hold an Australian carbon credit
22
unit; and
23
(ii) the unit would have been a primary producer registered
24
emissions unit if you were starting to hold, holding or
25
ceasing to hold the unit (as applicable) instead of the
26
provider; and
27
(iii) the amount does not relate to you giving the provider a
28
*
quasi-ownership right over land.
29
Primary production deductions
30
(3) Your
primary production deductions
for the
*
current year are:
31
(a) all amounts you can deduct that relate exclusively to the
32
amount referred to in paragraph (2)(a); and
33
(b) so much of any other amounts you can deduct (other than
34
*
apportionable deductions) to the extent that they reasonably
35
relate to the amount referred to in paragraph (2)(a); and
36
Schedule 3
Tax accounting for primary producer registered emissions units
8
Treasury Laws Amendment (2023 Measures No. 2) Bill 2023
No. , 2023
(c) so much of any other amounts you can deduct for the current
1
year in relation to expenditure you incur in:
2
(i) starting to
*
hold a
*
primary producer registered
3
emissions unit; or
4
(ii) holding such a unit; or
5
(iii) ceasing to hold such a unit; and
6
(d) so much of any other amounts you can deduct for the current
7
year in relation to expenditure you incur under an
8
*
arrangement with a
*
carbon service provider to the extent
9
that:
10
(i) the arrangement relates to the provider starting to hold,
11
holding or ceasing to hold an
*
Australian carbon credit
12
unit; and
13
(ii) the unit would have been a primary producer registered
14
emissions unit if you were starting to hold, holding or
15
ceasing to hold the unit (as applicable) instead of the
16
provider; and
17
(iii) the expenditure does not relate to you giving the
18
provider a
*
quasi-ownership right over land.
19
Note 1:
For the expenditure covered by subparagraph (c)(i), see
20
subsections 420-15(1) and (4) and 420-65(4).
21
Note 2:
For the expenditure covered by subparagraph (c)(iii), see
22
subsection 420-42(1).
23
3 At the end of Subdivision 420-A
24
Add:
25
420-13 Meaning of
primary producer registered emissions unit
26
A
*
registered emissions unit you start to
*
hold, hold or cease to
27
hold is a
primary producer registered emissions unit
if:
28
(a) the unit is an
*
Australian carbon credit unit; and
29
(b) you are an individual; and
30
(c) your holding of the unit starts on or after 1 July 2022 because
31
the unit:
32
(i) is issued to you under the
Carbon Credits (Carbon
33
Farming Initiative) Act 2011
in relation to an eligible
34
offsets project (within the meaning of that Act); or
35
Tax accounting for primary producer registered emissions units
Schedule 3
No. , 2023
Treasury Laws Amendment (2023 Measures No. 2) Bill 2023
9
(ii) is transferred to you by a
*
carbon service provider that
1
was holding the unit because the unit was issued to the
2
provider on or after 1 July 2022 under that Act in
3
relation to such a project; and
4
(d) at all times while the project is carried on, a
*
primary
5
production business is carried on:
6
(i) in the same area as the project; or
7
(ii) in an area connected to an area in which the project is
8
carried on; and
9
(e) at all times while the project is carried on, you are:
10
(i) carrying on a primary production business covered by
11
paragraph (d); or
12
(ii) a beneficiary of a trust that is carrying on a primary
13
production business covered by paragraph (d); or
14
(iii) a partner in a partnership that is carrying on a primary
15
production business covered by paragraph (d).
16
Note 1:
If you cease to hold the registered emissions unit, the unit is not a
17
primary producer registered emissions unit for any new holder of the
18
unit (see paragraph (c)).
19
Note 2:
A consequence of paragraph (c) is that the unit will not be a primary
20
producer registered emissions unit for you for a subsequent holding of
21
it. That is, if after disposing of the unit you later reacquire it.
22
Note 3:
Different subparagraphs of paragraph (e) may apply to you at different
23
times.
24
4 At the end of Subdivision 420-D
25
Add:
26
420-62 Primary producer registered emissions units
27
This Subdivision (other than section 420-60) does not apply to you
28
in relation to a
*
primary producer registered emissions unit.
29
5 At the end of section 420-65
30
Add:
31
Primary producer registered emissions units
32
(7) Subsections (1), (2) and (6) do not affect the application of:
33
Schedule 3
Tax accounting for primary producer registered emissions units
10
Treasury Laws Amendment (2023 Measures No. 2) Bill 2023
No. , 2023
(a) Division 392 (long-
term averaging of primary producers' tax
1
liability); or
2
(b) Division 393 (farm management deposits);
3
to expenditure to the extent that you incur it in becoming the
4
*
holder of, or ceasing to hold, a
*
primary producer registered
5
emissions unit.
6
6 After subsection 420-70(2)
7
Insert:
8
(3) Subsections (1) and (4) do not affect the application of:
9
(a) Division 392 (long-
term averaging of primary producers' tax
10
liability); or
11
(b) Division 393 (farm management deposits);
12
to an amount that you are entitled to receive because you ceased to
13
*
hold a
*
primary producer registered emissions unit.
14
7 Subsection 995-1(1)
15
Insert:
16
carbon service provider
means an entity that carries on the
17
*
business of providing services wholly or mainly relating to offsets
18
projects (within the meaning of the
Carbon Credits (Carbon
19
Farming Initiative) Act 2011
), including services involving the
20
entity carrying out such projects as the project proponent (within
21
the meaning of that Act).
22
primary producer registered emissions unit
has the meaning given
23
by section 420-13.
24
8 Application of amendments
25
The amendments made by this Schedule apply to assessments for the
26
income year that includes 1 July 2022 and later income years.
27
Cash flow relief for small and medium businesses
Schedule 4
Amendments
Part 1
No. , 2023
Treasury Laws Amendment (2023 Measures No. 2) Bill 2023
11
Schedule
4--Cash flow relief for small and
1
medium businesses
2
Part
1--Amendments
3
Taxation Administration Act 1953
4
1 At the end of section 45-405 in Schedule 1
5
Add:
6
Reduced
GDP adjustment
for 2023-24 income year
7
(10) Despite subsections (3) and (6), if the current year is the 2023-24
8
income year, then for the purposes of the formula in subsection (2)
9
the
GDP adjustment
is 6%.
10
Note:
This subsection will be repealed on 1 July 2028: see Part 2 of
11
Schedule 4 to the
Treasury Laws Amendment (2023 Measures No. 2)
12
Act 2023
.
13
2 Application of amendment
14
The amendment made by this Part applies for the purposes of working
15
out the amount of an instalment:
16
(a) for an instalment quarter for the 2023-24 income year; and
17
(b) that becomes due on or after the commencement of this Part.
18
Schedule 4
Cash flow relief for small and medium businesses
Part 2
Sunsetting
12
Treasury Laws Amendment (2023 Measures No. 2) Bill 2023
No. , 2023
Part
2--Sunsetting
1
Taxation Administration Act 1953
2
3 Subsection 45-405(10) in Schedule 1
3
Repeal the subsection.
4
Enhancements to the Home Guarantee Scheme
Schedule 5
No. , 2023
Treasury Laws Amendment (2023 Measures No. 2) Bill 2023
13
Schedule
5--Enhancements to the Home
1
Guarantee Scheme
2
3
Note:
This Schedule amends the
National Housing Finance and Investment Corporation Act
4
2018
. If, at or before the commencement of this Schedule, another Act amends that
5
short title, then references in this Schedule to that short title are instead references to
6
that short title as amended by the other Act (see section 10 of the
Acts Interpretation Act
7
1901
).
8
National Housing Finance and Investment Corporation Act
9
2018
10
1 Paragraph 3(f)
11
Repeal the paragraph, substitute:
12
(f) assisting earlier access to the housing market by:
13
(i) single parents with dependants; and
14
(ii) legal guardians of children where the legal guardian is
15
single; and
16
(g) assisting earlier access to the housing market by individuals
17
who have not held an ownership interest in real property in
18
Australia in the last 10 years.
19