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This is a Bill, not an Act. For current law, see the Acts databases.
2013-2014-2015
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Tax Laws Amendment (Small Business
Measures No. 2) Bill 2015
No. , 2015
(Treasury)
A Bill for an Act to amend the law relating to
taxation, and for related purposes
No. ,
2015
Tax Laws Amendment (Small Business Measures No. 2) Bill 2015
i
Contents
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 1
3
Schedules ........................................................................................... 2
Schedule 1--Accelerated depreciation for small business
entities
3
Part 1--Main amendments
3
Income Tax Assessment Act 1997
3
Income Tax (Transitional Provisions) Act 1997
4
Part 2--Other amendments
6
Income Tax Assessment Act 1997
6
Schedule 2--Accelerated depreciation for primary producers
7
Income Tax Assessment Act 1997
7
No. ,
2015
Tax Laws Amendment (Small Business Measures No. 2) Bill 2015
1
A Bill for an Act to amend the law relating to
1
taxation, and for related purposes
2
The Parliament of Australia enacts:
3
1 Short title
4
This Act may be cited as the Tax Laws Amendment (Small
5
Business Measures No. 2) Act 2015.
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
Tax Laws Amendment (Small Business Measures No. 2) Bill 2015
No. , 2015
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. Schedule 1,
Part 1
The day this Act receives the Royal Assent.
3. Schedule 1,
item 10
1 July 2022.
1 July 2022
4. Schedule 1,
items 11 to 14
1 July 2019.
1 July 2019
5. Schedule 2
The day 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
Accelerated depreciation for small business entities Schedule 1
Main amendments Part 1
No. ,
2015
Tax Laws Amendment (Small Business Measures No. 2) Bill 2015
3
Schedule 1
--Accelerated depreciation for
1
small business entities
2
Part 1
--Main amendments
3
Income Tax Assessment Act 1997
4
1 At the end of subsection 328-175(10)
5
Add:
6
Note 3:
Subsections 328-180(2) and (3) of the Income Tax (Transitional
7
Provisions) Act 1997 affect the operation of this subsection in relation
8
to income years ending on or after 12 May 2015.
9
2 At the end of paragraph 328-180(1)(b)
10
Add:
11
Note:
This threshold is $20,000 for assets you first acquire between
12
12 May 2015 and 30 June 2017: see subsection 328-180(4) of the
13
Income Tax (Transitional Provisions) Act 1997.
14
3 At the end of paragraphs 328-180(2)(a) and (3)(a)
15
Add:
16
Note:
This threshold is $20,000 for costs included between 12 May
17
2015 and 30 June 2017: see subsection 328-180(5) of the Income
18
Tax (Transitional Provisions) Act 1997.
19
4 Subsection 328-210(1) (note)
20
Omit "Note", substitute "Note 1".
21
5 At the end of subsection 328-210(1)
22
Add:
23
Note 2:
This threshold is $20,000 for income years ending on or after 12 May
24
2015 and on or before 30 June 2017: see subsection 328-180(6) of the
25
Income Tax (Transitional Provisions) Act 1997.
26
6 At the end of subsection 328-250(1)
27
Add:
28
Note:
The threshold in subsection 328-180(1) is $20,000 (instead of $1,000)
29
for assets first acquired between 12 May 2015 and 30 June 2017: see
30
Schedule 1 Accelerated depreciation for small business entities
Part 1 Main amendments
4
Tax Laws Amendment (Small Business Measures No. 2) Bill 2015
No. , 2015
subsection 328-180(4) of the Income Tax (Transitional Provisions)
1
Act 1997.
2
7 At the end of subsection 328-250(4)
3
Add:
4
Note:
The threshold in subsection 328-180(1) is $20,000 (instead of $1,000)
5
for assets acquired between 12 May 2015 and 30 June 2017: see
6
subsection 328-180(4) of the Income Tax (Transitional Provisions)
7
Act 1997.
8
8 At the end of subsection 328-253(4)
9
Add:
10
Note:
The threshold in subsection 328-180(1) is $20,000 (instead of $1,000)
11
for assets first acquired between 12 May 2015 and 30 June 2017: see
12
subsection 328-180(4) of the Income Tax (Transitional Provisions)
13
Act 1997.
14
Income Tax (Transitional Provisions) Act 1997
15
9 After section 328-175
16
Insert:
17
328-180 Increased access to accelerated depreciation from 12 May
18
2015 to 30 June 2017
19
(1) In this section:
20
2015 budget time means 7.30 pm, by legal time in the Australian
21
Capital Territory, on 12 May 2015.
22
increased access year means an income year that ends:
23
(a) on or after 12 May 2015; and
24
(b) on or before 30 June 2017.
25
Restrictions on making choice
26
(2) In determining whether you can choose to use Subdivision 328-D
27
of the Income Tax Assessment Act 1997 in an increased access
28
year, disregard subsection 328-175(10) of that Act.
29
Accelerated depreciation for small business entities Schedule 1
Main amendments Part 1
No. ,
2015
Tax Laws Amendment (Small Business Measures No. 2) Bill 2015
5
(3) In applying paragraph 328-175(10)(b) of that Act for the purpose
1
of determining whether you can choose to use that Subdivision in
2
any income year after the increased access years, disregard:
3
(a) the increased access years, other than the last of the increased
4
access years; and
5
(b) all earlier income years.
6
Assets costing less than $20,000
7
(4) Paragraph 328-180(1)(b) of the Income Tax Assessment Act 1997
8
applies to a depreciating asset as if a reference in that paragraph to
9
$1,000 were a reference to $20,000, if:
10
(a) you first acquired the asset at or after the 2015 budget time;
11
and
12
(b) you:
13
(i) first used the asset, for a taxable purpose, at or after the
14
2015 budget time and on or before 30 June 2017; or
15
(ii) first installed the asset ready for use, for a taxable
16
purpose, at or after the 2015 budget time and on or
17
before 30 June 2017.
18
(5) Paragraph 328-180(2)(a) or (3)(a) of the Income Tax Assessment
19
Act 1997 applies to an amount included in the second element of
20
the cost of an asset as if a reference in that paragraph to $1,000
21
were a reference to $20,000, if the amount is so included at any
22
time:
23
(a) at or after the 2015 budget time; and
24
(b) on or before 30 June 2017.
25
Low value pool
26
(6) Section 328-210 of the Income Tax Assessment Act 1997 applies in
27
relation to a deduction for an increased access year as if a reference
28
in that section to $1,000 were a reference to $20,000.
29
Schedule 1 Accelerated depreciation for small business entities
Part 2 Other amendments
6
Tax Laws Amendment (Small Business Measures No. 2) Bill 2015
No. , 2015
Part 2
--Other amendments
1
Income Tax Assessment Act 1997
2
10 Subsection 328-175(10) (note 3)
3
Repeal the note.
4
11 Paragraphs 328-180(1)(b), (2)(a) and (3)(a) (notes)
5
Repeal the notes.
6
12 Subsection 328-210(1) (note 1)
7
Omit "Note 1", substitute "Note".
8
13 Subsection 328-210(1) (note 2)
9
Repeal the note.
10
14 Subsections 328-250(1) and (4) and 328-253(4) (notes)
11
Repeal the notes.
12
Accelerated depreciation for primary producers Schedule 2
No. ,
2015
Tax Laws Amendment (Small Business Measures No. 2) Bill 2015
7
Schedule 2
--Accelerated depreciation for
1
primary producers
2
3
Income Tax Assessment Act 1997
4
1 Section 12-
5 (table item headed "capital allowances")
5
Omit:
6
water facilities and horticultural plants .............................. Subdivision 40-F
substitute:
7
water facilities, horticultural plants, fodder storage
assets and fencing assets ..............................................
Subdivision 40-F
2 Section 40-10 (table item 1.5)
8
Repeal the item, substitute:
9
1.5
Primary production depreciating assets
You can deduct amounts for capital expenditure on:
water facilities immediately; or
horticultural plants over a period that relates to
the effective life of the plant; or
fodder storage assets over 3 income years; or
fencing assets immediately.
Subdivision 40-F
3 At the end of paragraph 40-53(1)(b)
10
Add ",
*
fodder storage asset or
*
fencing asset".
11
4 Section 40-510
12
Omit "or horticultural plants", substitute ", horticultural plants, fodder
13
storage assets or fencing assets".
14
5 Section 40-515 (heading)
15
Repeal the heading, substitute:
16
Schedule 2 Accelerated depreciation for primary producers
8
Tax Laws Amendment (Small Business Measures No. 2) Bill 2015
No. , 2015
40-515 Water facilities, horticultural plants, fodder storage assets
1
and fencing assets
2
6 After paragraph 40-515(1)(b)
3
Insert:
4
; (c) a
*
fodder storage asset;
5
(d) a
*
fencing asset.
6
7 At the end of subsection 40-515(3)
7
Add:
8
; or (c) for a
*
fodder storage asset--the amount of capital
9
expenditure incurred on the asset; or
10
(d) for a
*
fencing asset--the amount of capital expenditure
11
incurred on the asset.
12
8 Subsection 40-515(4) (heading)
13
Repeal the heading, substitute:
14
Reduction of deduction: water facilities, fodder storage assets and
15
fencing assets
16
9 Subsection 40-515(4)
17
After "
*
water facility", insert ",
*
fodder storage asset or
*
fencing asset".
18
10 Subsection 40-515(4)
19
Omit "the facility's decline in value", substitute "the decline in value of
20
the facility or asset".
21
11 Section 40-520 (heading)
22
Repeal the heading, substitute:
23
40-520 Meaning of water facility, horticultural plant, fodder storage
24
asset and fencing asset
25
12 At the end of section 40-520
26
Add:
27
(3) A fodder storage asset is an asset or a structural improvement, or a
28
repair of a capital nature, or an alteration, addition or extension, to
29
Accelerated depreciation for primary producers Schedule 2
No. ,
2015
Tax Laws Amendment (Small Business Measures No. 2) Bill 2015
9
an asset or a structural improvement, that is primarily and
1
principally for the purpose of storing fodder.
2
(4) A fencing asset is:
3
(a) an asset or a structural improvement that is a fence; or
4
(b) a repair of a capital nature, or an alteration, addition or
5
extension, to a fence.
6
13 Subsections 40-525(1) and (2) (paragraph (a) of the note)
7
Omit "in a determination made".
8
14 At the end of section 40-525
9
Add:
10
Fodder storage assets
11
(3) The capital expenditure you incurred on the construction,
12
manufacture, installation or acquisition of the
*
fodder storage asset
13
must have been incurred primarily and principally for use in a
14
*
primary production business that you conduct on land in
15
Australia.
16
Note:
If Division 250 applies to you and an asset that is a fodder storage
17
asset:
18
(a) if section 250-150 applies--the condition in this subsection is
19
taken to be satisfied for the asset to the extent specified under
20
subsection 250-150(3); or
21
(b) otherwise--the condition in this subsection is taken not to be
22
satisfied for the asset.
23
Fencing assets
24
(4) The capital expenditure you incurred on the construction,
25
manufacture, installation or acquisition of the
*
fencing asset must
26
have been incurred primarily and principally for use in a
*
primary
27
production business that you conduct on land in Australia.
28
Note:
If Division 250 applies to you and an asset that is a fencing asset:
29
(a) if section 250-150 applies--the condition in this subsection is
30
taken to be satisfied for the asset to the extent specified under
31
subsection 250-150(3); or
32
(b) otherwise--the condition in this subsection is taken not to be
33
satisfied for the asset.
34
Schedule 2 Accelerated depreciation for primary producers
10
Tax Laws Amendment (Small Business Measures No. 2) Bill 2015
No. , 2015
15 Section 40-530
1
Repeal the section, substitute:
2
40-530 When declines in value start
3
(1) A
*
water facility,
*
fodder storage asset or
*
fencing asset starts to
4
decline in value in the income year in which you first incur
5
expenditure on the facility or asset.
6
(2) A
*
horticultural plant starts to decline in value in:
7
(a) if you are the first entity to satisfy a condition in
8
subsection 40-525(2) for the plant--the income year in which
9
the first commercial season starts; or
10
(b) if not--the later of the income year in which you first
11
satisfied that condition and the income year in which the first
12
commercial season starts.
13
16 Section 40-540
14
Repeal the section, substitute:
15
40-540 How you work out the decline in value for water facilities
16
(1) The decline in value of a
*
water facility for the income year in
17
which you incurred the expenditure is the amount of capital
18
expenditure you incurred on the construction, manufacture,
19
installation or acquisition of the water facility.
20
(2) However, disregard expenditure that you cannot deduct because of
21
section 26-100 (about water infrastructure improvement
22
expenditure).
23
17 After section 40-545
24
Insert:
25
40-548 How you work out the decline in value for fodder storage
26
assets
27
You work out the decline in value of a
*
fodder storage asset for an
28
income year in this way for the income year in which you incurred
29
the expenditure and the 2 following years:
30
Accelerated depreciation for primary producers Schedule 2
No. ,
2015
Tax Laws Amendment (Small Business Measures No. 2) Bill 2015
11
1
3
/
Expenditure
33
%
1
where:
2
expenditure is the amount of capital expenditure you incurred on
3
the construction, manufacture, installation or acquisition of the
4
*
fodder storage asset.
5
40-551 How you work out the decline in value for fencing assets
6
The decline in value of a
*
fencing asset for the income year in
7
which you incurred the expenditure is the amount of capital
8
expenditure you incurred on the construction, manufacture,
9
installation or acquisition of the fencing asset.
10
18 Subsection 40-555(1)
11
Omit "person", substitute "entity".
12
19 At the end of section 40-555
13
Add:
14
Fodder storage assets
15
(4) You cannot deduct an amount for any income year for capital
16
expenditure on the acquisition of a
*
fodder storage asset if any
17
entity has deducted or can deduct an amount under this Subdivision
18
for any income year for earlier capital expenditure on:
19
(a) the construction or manufacture of the asset; or
20
(b) a previous acquisition of the asset.
21
Note:
A depreciating asset and a repair of a capital nature or an alteration,
22
addition or extension to that asset that is a fodder storage asset are not
23
the same depreciating asset for the purposes of section 40-50 and this
24
Subdivision: see section 40-53.
25
Fencing assets
26
(5) You cannot deduct an amount for any income year for capital
27
expenditure on the acquisition of a
*
fencing asset if any entity has
28
deducted or can deduct an amount under this Subdivision for any
29
income year for earlier capital expenditure on:
30
(a) the construction or manufacture of the fencing asset; or
31
Schedule 2 Accelerated depreciation for primary producers
12
Tax Laws Amendment (Small Business Measures No. 2) Bill 2015
No. , 2015
(b) a previous acquisition of the fencing asset.
1
Note:
A depreciating asset and a repair of a capital nature or an alteration,
2
addition or extension to that asset that is a fencing asset are not the
3
same depreciating asset for the purposes of section 40-50 and this
4
Subdivision: see section 40-53.
5
(6) You cannot deduct an amount for any income year for capital
6
expenditure on a
*
fencing asset to the extent that any entity has
7
deducted or can deduct the amount under subsection 40-630(1)
8
(about landcare operations).
9
(7) You cannot deduct an amount for any income year for capital
10
expenditure on a
*
fencing asset if the fencing asset is (or is a repair,
11
alteration, addition or extension to):
12
(a) a stockyard or pen; or
13
(b) a portable fence.
14
20 Subsection 995-1(1)
15
Insert:
16
fencing asset has the meaning given by subsection 40-520(4).
17
fodder storage asset has the meaning given by
18
subsection 40-520(3).
19
21 Application of amendments
20
The amendments made by this Schedule apply to assets that an entity
21
starts to hold, or to expenditure an entity incurs, at or after 7.30 pm, by
22
legal time in the Australian Capital Territory, on 12 May 2015.
23