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This is a Bill, not an Act. For current law, see the Acts databases.
2016-2017-2018
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Treasury Laws Amendment (Black
Economy Taskforce Measures No. 2) Bill
2018
No. , 2018
(Treasury)
A Bill for an Act to amend the law relating to
taxation, and for related purposes
No. , 2018
Treasury Laws Amendment (Black Economy Taskforce Measures
No. 2) Bill 2018
i
Contents
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 1
3
Schedules ........................................................................................... 2
Schedule 1--Removing tax deductibility of non-compliant
payments
3
Income Tax Assessment Act 1997
3
Schedule 2--Taxable payments reporting system
7
Taxation Administration Act 1953
7
Schedule 3--Taxing tobacco at the time of manufacture
11
Excise Act 1901
11
Taxation Administration Act 1953
13
No. , 2018
Treasury Laws Amendment (Black Economy Taskforce Measures
No. 2) Bill 2018
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 is the Treasury Laws Amendment (Black Economy
5
Taskforce Measures No. 2) Act 2018.
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 (Black Economy Taskforce Measures
No. 2) Bill 2018
No. , 2018
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
The first 1 January, 1 April, 1 July or
1 October to occur after the day this Act
receives the Royal Assent.
3. Schedule 2
The later of:
(a) the first 1 January, 1 April, 1 July or
1 October to occur after the day this Act
receives the Royal Assent; and
(b) immediately after the commencement of
Schedule 2 to the Treasury Laws
Amendment (Black Economy Taskforce
Measures No. 1) Act 2018.
However, the provisions do not commence
at all if the event mentioned in paragraph (b)
does not occur.
4. Schedule 3
The first 1 January, 1 April, 1 July or
1 October to occur after 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
Removing tax deductibility of non-compliant payments Schedule 1
No. , 2018
Treasury Laws Amendment (Black Economy Taskforce Measures
No. 2) Bill 2018
3
Schedule 1--Removing tax deductibility of
1
non-compliant payments
2
3
Income Tax Assessment Act 1997
4
1 At the end of Division 26 of Part 2-5
5
Add:
6
26-105 Non-compliant payments for work and services
7
No deduction if amount not withheld or Commissioner not notified
8
(1) You cannot deduct under this Act a payment if:
9
(a) any of the following provisions in Schedule 1 to the Taxation
10
Administration Act 1953 require you to withhold an amount
11
from the payment:
12
(i) section 12-35 (about payments to employees);
13
(ii) section 12-40 (about payments to directors);
14
(iii) section 12-47 (about payments to
*
religious
15
practitioners);
16
(iv) section 12-60 (about payments under labour hire and
17
certain other arrangements);
18
(v) in relation to a
*
supply, other than a supply referred to
19
in subsection (3) of this section--section 12-190 (about
20
quoting of
*
ABN); and
21
(b) either:
22
(i) you fail to withhold an amount (whether or not that
23
amount is the amount required to be withheld as
24
mentioned in paragraph (a)) from the payment; or
25
(ii) after withholding the amount from the payment, you fail
26
to comply, or purportedly comply, with section 16-150
27
or 389-5 (as the case requires) in that Schedule, in
28
relation to the amount.
29
(2) You cannot deduct under this Act a
*
non-cash benefit if:
30
(a) section 14-5 in Schedule 1 to the Taxation Administration Act
31
1953 requires you to pay an amount to the Commissioner
32
Schedule 1 Removing tax deductibility of non-compliant payments
4
Treasury Laws Amendment (Black Economy Taskforce Measures
No. 2) Bill 2018
No. , 2018
before providing the benefit, because of any of the following
1
provisions in that Schedule:
2
(i) section 12-35 (about payments to employees);
3
(ii) section 12-40 (about payments to directors);
4
(iii) section 12-47 (about payments to
*
religious
5
practitioners);
6
(iv) section 12-60 (about payments under labour hire and
7
certain other arrangements);
8
(v) in relation to a
*
supply, other than a supply referred to
9
in subsection (3) of this section--section 12-190 (about
10
quoting of
*
ABN); and
11
(b) you fail to comply, or purportedly comply, with
12
section 16-150 in that Schedule in relation to the amount.
13
(3) For the purposes of subparagraphs (1)(a)(v) and (2)(a)(v), the
14
supplies are supplies that are wholly a
*
supply of either or both of
15
the following:
16
(a) a supply of goods (within the meaning of section 195-1 of the
17
*
GST Act);
18
(b) a supply of real property (within the meaning of that section
19
of that Act).
20
Exception--nil amounts
21
(4) Subsection (1) or (2) does not apply if the amount required to be
22
withheld, or the amount required to be paid to the Commissioner,
23
(as the case requires) is a nil amount.
24
Exception--ABN quoted
25
(5) Subsection (1) does not apply in relation to an amount required to
26
be withheld from a payment under section 12-35 in Schedule 1 to
27
the Taxation Administration Act 1953, if:
28
(a) when the payment is made, you have been given:
29
(i) an
*
invoice or some other document that relates to the
30
payment that
*
quotes the individual's
*
ABN; or
31
(ii) if the payment relates to a
*
supply that has been made
32
through an
*
agent--an invoice or some other document
33
that relates to the payment that quotes the agent's ABN;
34
or
35
Removing tax deductibility of non-compliant payments Schedule 1
No. , 2018
Treasury Laws Amendment (Black Economy Taskforce Measures
No. 2) Bill 2018
5
(b) when the payment is made:
1
(i) you have been given an invoice or some other document
2
that relates to the payment that purports to quote the
3
individual's ABN; and
4
(ii) the individual does not have an ABN, or the invoice or
5
other document does not in fact quote the individual's
6
ABN; and
7
(iii) you have no reasonable grounds to believe that the
8
individual does not have an ABN, or that the invoice or
9
other document does not quote the individual's ABN; or
10
(c) if the payment relates to a supply that has been made through
11
an agent--when the payment is made:
12
(i) you have been given an invoice or some other document
13
that relates to the payment that purports to quote the
14
agent's ABN; and
15
(ii) the agent does not have an ABN, or the invoice or other
16
document does not in fact quote the agent's ABN; and
17
(iii) you have no reasonable grounds to believe that the
18
agent does not have an ABN, or that the invoice or other
19
document does not quote the agent's ABN.
20
(6) Subsection (2) does not apply in relation to a
*
non-cash benefit that
21
requires an amount to be paid to the Commissioner, if:
22
(a) when the non-cash benefit is provided, you have been given:
23
(i) an
*
invoice or some other document that relates to the
24
non-cash benefit that
*
quotes the individual's
*
ABN; or
25
(ii) if the non-cash benefit relates to a
*
supply that has been
26
made through an
*
agent--an invoice or some other
27
document that relates to the non-cash benefit that quotes
28
the agent's ABN; or
29
(b) when the non-cash benefit is provided:
30
(i) you have been given an invoice or some other document
31
that relates to the non-cash benefit that purports to quote
32
the individual's ABN; and
33
(ii) the individual does not have an ABN, or the invoice or
34
other document does not in fact quote the individual's
35
ABN; and
36
Schedule 1 Removing tax deductibility of non-compliant payments
6
Treasury Laws Amendment (Black Economy Taskforce Measures
No. 2) Bill 2018
No. , 2018
(iii) you have no reasonable grounds to believe that the
1
individual does not have an ABN, or that the invoice or
2
other document does not quote the individual's ABN; or
3
(c) if the non-cash benefit relates to a supply that has been made
4
through an agent--when the non-cash benefit is provided:
5
(i) you have been given an invoice or some other document
6
that relates to the non-cash benefit that purports to quote
7
the agent's ABN; and
8
(ii) the agent does not have an ABN, or the invoice or other
9
document does not in fact quote the agent's ABN; and
10
(iii) you have no reasonable grounds to believe that the
11
agent does not have an ABN, or that the invoice or other
12
document does not quote the agent's ABN.
13
Exception--voluntarily tell the Commissioner about a mistake
14
(7) Subsection (1) does not apply if, before the Commissioner tells you
15
that an examination is to be made of your affairs relating to a
16
*
taxation law for a relevant period, you voluntarily tell the
17
Commissioner, in the
*
approved form, that you have failed to:
18
(a) withhold an amount; or
19
(b) comply with section 16-150 or 389-5 (as the case requires) in
20
Schedule 1 to the Taxation Administration Act 1953 in
21
relation to the amount.
22
(8) Subsection (2) does not apply if, before the Commissioner tells you
23
that an examination is to be made of your affairs relating to a
24
*
taxation law for a relevant period, you voluntarily tell the
25
Commissioner, in the
*
approved form, that you have failed to
26
comply with section 16-150 in Schedule 1 to the Taxation
27
Administration Act 1953 in relation to the amount.
28
2 Application
29
The amendments made by this Schedule apply in relation to a payment
30
made, or a non-cash benefit provided, on or after 1 July 2019.
31
Taxable payments reporting system Schedule 2
No. , 2018
Treasury Laws Amendment (Black Economy Taskforce Measures
No. 2) Bill 2018
7
Schedule 2--Taxable payments reporting
1
system
2
3
Taxation Administration Act 1953
4
1 Section 396-55 in Schedule 1 (table item 12)
5
Repeal the item, substitute:
6
12
an entity that makes a
*
supply of a courier
service or a road
freight service and
has an
*
ABN
the provision of consideration (within the meaning
of the
*
GST Act) by the entity to another entity
wholly or partly for the
*
supply by the other entity
of a courier service or a road freight service, unless:
(a) the entities are
*
members of the same
*
consolidated group or
*
MEC group; or
(b) Division 12 requires that an amount be withheld
from the payment of the consideration
13
an entity that makes a
*
supply of a security,
investigation or
surveillance service
and has an
*
ABN
the provision of consideration (within the meaning
of the
*
GST Act) by the entity to another entity
wholly or partly for the
*
supply by the other entity
of a security, investigation or surveillance service,
unless:
(a) the entities are
*
members of the same
*
consolidated group or
*
MEC group; or
(b) Division 12 requires that an amount be withheld
from the payment of the consideration
14
an entity that makes a
*
supply of an
information
technology service
and has an
*
ABN
the provision of consideration (within the meaning
of the
*
GST Act) by the entity to another entity
wholly or partly for the
*
supply by the other entity
of an information technology service, unless:
(a) the entities are
*
members of the same
*
consolidated group or
*
MEC group; or
(b) Division 12 requires that an amount be withheld
from the payment of the consideration
2 Application
7
(1)
Item 12 of the table in the amended provision applies in relation to a
8
road freight service transaction unless:
9
Schedule 2 Taxable payments reporting system
8
Treasury Laws Amendment (Black Economy Taskforce Measures
No. 2) Bill 2018
No. , 2018
(a) the transaction happens before 1 July 2019; or
1
(b) the transaction happens during an alternative reporting period
2
for item 12 that begins before 1 July 2019.
3
(2)
An inserted item applies to a transaction unless:
4
(a) the transaction happens before 1 July 2019; or
5
(b) the transaction happens during an alternative reporting period
6
for the item that begins before 1 July 2019.
7
(3)
In this item:
8
alternative reporting period means a period specified under
9
subparagraph (a)(ii) of the amended provision.
10
amended provision means section 396-55 in Schedule 1 to the Taxation
11
Administration Act 1953, as amended by item 1 of this Schedule.
12
inserted item means either item 13 or 14 of the table in the amended
13
provision.
14
road freight service transaction means a transaction described in
15
item 12 of the table that is not a transaction in relation to a courier
16
service.
17
3 General exemptions
18
(1)
As from 1 July 2019 or the commencement of this Schedule, whichever
19
is the later, the Commissioner is taken to have:
20
(a) determined, under subsection 396-70(4) in Schedule 1 to the
21
Taxation Administration Act 1953, the matter in subitem (2);
22
and
23
(b) revoked the determination of the matter in subitem 3(3) of
24
Schedule 2 to the Treasury Laws Amendment (Black
25
Economy Taskforce Measures No. 1) Act 2018, as amended
26
by the Commissioner if it has been amended.
27
(2)
Where the amended provision requires an entity to prepare and give a
28
report for a transaction that is described in item 12 of the table in that
29
provision and that happens during a particular period (the reporting
30
period), the entity is not so required if:
31
(a) the total value of the consideration that:
32
(i) is received by the entity during the reporting period; and
33
Taxable payments reporting system Schedule 2
No. , 2018
Treasury Laws Amendment (Black Economy Taskforce Measures
No. 2) Bill 2018
9
(ii) relates to the supply by the entity, including by a
1
contractor or subcontractor on behalf of the entity, of a
2
courier service or a road freight service;
3
is less than 10% of the entity's relevant GST turnover as at
4
the end of the reporting period; and
5
(b) the transaction is not described in another item of the table in
6
the amended provision; and
7
(c) the entity has not, before the time by which the amended
8
provision requires the report to be given, or within such
9
further time allowed by the Commissioner, chosen to be
10
required to prepare and give a report for the transaction.
11
(3)
For the purposes of paragraph (2)(c), giving a report for the transaction
12
is sufficient evidence of the making of the choice.
13
(4)
Neither of the following is a legislative instrument:
14
(a) the determination mentioned in paragraph (1)(a);
15
(b) the revocation mentioned in paragraph (1)(b).
16
(5)
The Commissioner may, by legislative instrument under
17
subsection 396-70(4) in Schedule 1 to the Taxation Administration Act
18
1953, repeal or amend the determination mentioned in paragraph (1)(a)
19
as if the Commissioner had made it by legislative instrument under
20
subsection 396-70(4).
21
Note:
See subsection 33(3) of the Acts Interpretation Act 1901. The legislative instrument
22
would provide that the determination is repealed or amended.
23
(6)
For a transaction that happens on or after 1 July 2019 but during an
24
alternative reporting period that begins before 1 July 2019:
25
(a) the determination mentioned in paragraph (1)(a) does not
26
apply; and
27
(b) the determination to which paragraph (1)(b) refers applies
28
despite its revocation.
29
(7)
In this item:
30
alternative reporting period means a period specified under
31
subparagraph 396-55(a)(ii) in Schedule 1 to the Taxation
32
Administration Act 1953 for item 12 of the table in section 396-55.
33
amended provision means section 396-55 in Schedule 1 to the Taxation
34
Administration Act 1953, as amended by item 1 of this Schedule.
35
Schedule 2 Taxable payments reporting system
10
Treasury Laws Amendment (Black Economy Taskforce Measures
No. 2) Bill 2018
No. , 2018
relevant GST turnover, as at the end of a reporting period, means:
1
(a) if the entity has been making supplies for at least 12
2
months--the entity's current GST turnover as at the end of
3
the reporting period; or
4
(b) otherwise--the entity's projected GST turnover, within the
5
meaning of the A New Tax System (Goods and Services Tax)
6
Act 1999, as at the end of the reporting period.
7
Taxing tobacco at the time of manufacture Schedule 3
No. , 2018
Treasury Laws Amendment (Black Economy Taskforce Measures
No. 2) Bill 2018
11
Schedule 3--Taxing tobacco at the time of
1
manufacture
2
3
Excise Act 1901
4
1 Subsection 4(1)
5
Insert:
6
tobacco goods means goods mentioned in subitem 5.1, 5.5 or 5.8
7
of the table in the Schedule to the Excise Tariff Act 1921.
8
2 At the end of subsection 39A(2)
9
Add:
10
; or (m) in relation to an application for a manufacturer licence that
11
permits the manufacture of any tobacco goods--the applicant
12
has previously failed to comply with a requirement to provide
13
security under section 16.
14
3 At the end of subsection 39D(3)
15
Add:
16
Note:
If the licence permits the manufacture of tobacco goods, the Collector
17
must state the tobacco excise period in the licence and the licence
18
holder must give a tobacco excise return for each tobacco excise
19
period, see section 66.
20
4 After paragraph 39G(1)(m)
21
Insert:
22
(ma) in relation to a manufacturer licence that permits the
23
manufacture of any tobacco goods--the licence holder has
24
failed to comply with a requirement to provide security under
25
section 16 in relation to that licence; or
26
5 At the end of section 54
27
Add:
28
(4) To avoid doubt, if the excisable goods are tobacco goods, only the
29
licensed manufacturer of the goods is liable to pay Excise duty on
30
the goods.
31
Schedule 3 Taxing tobacco at the time of manufacture
12
Treasury Laws Amendment (Black Economy Taskforce Measures
No. 2) Bill 2018
No. , 2018
Note:
Under subsection 66(7), tobacco goods are taken to be entered, and
1
delivered, for home consumption at the time they are manufactured.
2
6 Subsection 61C(1)
3
After "deliver goods", insert "(other than tobacco goods)".
4
7 Before section 68
5
Insert:
6
66 Payment of duty relating to tobacco goods
7
(1) If the Collector grants a person a licence under subsection 39A(1)
8
that permits the manufacture of any tobacco goods, the Collector
9
must determine a recurring 7 day period (the tobacco excise
10
period) for the licence.
11
(2) However, if the licence is granted on a day that is not the first day
12
of the tobacco excise period, the Collector must determine the first
13
tobacco excise period to be the period from that day until the day
14
before the next tobacco excise period starts.
15
(3) The tobacco excise period, and any tobacco excise period
16
determined under subsection (2), must be stated in the licence.
17
(4) The person must, for each tobacco excise period for the licence that
18
begins before the licence ends or is cancelled, give a tobacco
19
excise return to the Collector which includes:
20
(a) the amount (including a nil amount) of tobacco goods
21
manufactured under the licence during the period; and
22
(b) the amount of the Excise duty payable on those tobacco
23
goods.
24
(5) The return must be:
25
(a) in the approved form; and
26
(b) given to the Collector:
27
(i) on the first business day after the tobacco excise period
28
ends; or
29
(ii) if the licence ends or is cancelled during the tobacco
30
excise period--on the first business day after the day
31
the licence ends or is cancelled.
32
Taxing tobacco at the time of manufacture Schedule 3
No. , 2018
Treasury Laws Amendment (Black Economy Taskforce Measures
No. 2) Bill 2018
13
(6) The Excise duty on the tobacco goods manufactured under the
1
licence during the tobacco excise period is due and payable by the
2
person on the same day that the return must be given for that
3
period.
4
(7) For the purposes of this Act, the tobacco goods manufactured
5
under the licence during the tobacco excise period are taken to be
6
entered for home consumption, and delivered for home
7
consumption, at the time the goods are manufactured.
8
67 General interest charge on unpaid duty
9
If any of the Excise duty remains unpaid after it is due under
10
subsection 66(6), the person liable to pay the duty is liable to pay
11
the general interest charge (within the meaning of the Taxation
12
Administration Act 1953) on the unpaid amount of the Excise duty
13
for each day in the period that:
14
(a) started at the beginning of the day by which the amount was
15
due to be paid; and
16
(b) finishes at the end of the last day, at the end of which, any of
17
the following remains unpaid:
18
(i) the amount;
19
(ii) general interest charge on any of the amount.
20
Note:
The general interest charge is worked out under Part IIA of the
21
Taxation Administration Act 1953.
22
8 Paragraph 59(a)
23
Omit "section 61C(2)", substitute "subsection 61C(2) or 66(7)".
24
Taxation Administration Act 1953
25
9 Subsection 8AAB(4) (after table item 3A)
26
Insert:
27
3B
67
Excise Act 1901
payment of excise duty for
tobacco goods
10 Application of amendments
28
The amendments made by this Schedule apply in relation to tobacco
29
goods manufactured on or after 1 July 2019.
30