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This is a Bill, not an Act. For current law, see the Acts databases.

TAX LAWS AMENDMENT (PERSONAL INCOME TAX REDUCTION) BILL 2005

2004-2005
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Tax Laws Amendment (2005 Measures
No. 3) Bill 2005
No. , 2005
(Treasury)
A Bill for an Act to amend the law relating to
taxation, and for related purposes
i Tax Laws Amendment (2005 Measures No. 3) Bill 2005 No. , 2005
Contents
1
Short title.......................................................................................1
2
Commencement .............................................................................1
3
Schedule(s)....................................................................................2
Schedule 1--Philanthropy
3
Income Tax Assessment Act 1936
3
Income Tax Assessment Act 1997
3
Schedule 2--International shipping and airline profits
7
Income Tax Assessment Act 1936
7
Schedule 3--Secrecy provisions
8
Taxation Administration Act 1953
8
Schedule 4--Rebatable employer status
9
Fringe Benefits Tax Assessment Act 1986
9
Schedule 5--Dependent child age criterion
10
Income Tax Assessment Act 1936
10
Tax Laws Amendment (2005 Measures No. 3) Bill 2005 No. , 2005 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 (2005
5
Measures No. 3) Act 2005.
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 (2005 Measures No. 3) Bill 2005 No. , 2005
Commencement information
Column 1
Column 2
Column 3
Provision(s)
Commencement
Date/Details
1. Sections 1 to 3
and anything in
this Act not
elsewhere covered
by this table
The day on which this Act receives the
Royal Assent.
2. Schedules 1 to
3
The day on which this Act receives the
Royal Assent.
3. Schedule 4
Immediately after the commencement of
Schedule 10 to the Tax Laws Amendment
(2004 Measures No. 1) Act 2004.
1 July 2005
4. Schedule 5
The day on which this Act receives the
Royal Assent.
Note:
This table relates only to the provisions of this Act as originally
1
passed by the Parliament and assented to. It will not be expanded to
2
deal with provisions inserted in this Act after assent.
3
(2) Column 3 of the table contains additional information that is not
4
part of this Act. Information in this column may be added to or
5
edited in any published version of this Act.
6
3 Schedule(s)
7
Each Act 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
Philanthropy Schedule 1
Tax Laws Amendment (2005 Measures No. 3) Bill 2005 No. , 2005 3
1
Schedule 1--Philanthropy
2
3
Income Tax Assessment Act 1936
4
1 Section 102M (subparagraph (b)(ii) of the definition of
5
exempt entity)
6
After "50-5", insert "or item 4.1 of the table in section 50-20".
7
2 Subsection 121F(1) (paragraph (aa) of the definition of
8
relevant exempting provision)
9
After "50-15,", insert "50-20,".
10
3 Paragraph 269B(1)(b)
11
After "50-15,", insert "50-20,".
12
4 Paragraph 272-90(7)(b) in Schedule 2F
13
Omit "or 50-10", substitute ", 50-10 or 50-20".
14
Income Tax Assessment Act 1997
15
5 Section 11-5 (after table item headed "film")
16
Insert:
17
funds established by will or trust
contributions to other funds.......................... 50-20
6 Subparagraph 43-55(1)(a)(i)
18
After "50-15,", insert "50-20,".
19
7 After section 50-15
20
Insert:
21
50-20 Funds contributing to other funds
22
23
Schedule 1 Philanthropy
4 Tax Laws Amendment (2005 Measures No. 3) Bill 2005 No. , 2005
Funds contributing to other funds
Item
Exempt entity
Special conditions
4.1
fund established by will or
instrument of trust solely for a
purpose referred to in
paragraph (a) or (b) of the column
headed "Recipient" in item 2 of
the table in section 30-15 (and not
covered by item 1.5, 1.5A or 1.5B
of the table in section 50-5)
see sections 50-52 and 50-72
8 Section 50-52 (heading)
1
Repeal the heading, substitute:
2
50-52 Special condition for items 1.1, 1.5, 1.5A, 1.5B and 4.1
3
9 Subsection 50-52(1)
4
Omit "or 1.5B", substitute ", 1.5B or 4.1".
5
10 Subsection 50-52(1) (note)
6
Omit "or section 50-60 (for an entity covered by item 1.5A or 1.5B)",
7
substitute ", 50-60 (for an entity covered by item 1.5A or 1.5B) or
8
section 50-72 (for an entity covered by item 4.1)".
9
11 Subsection 50-52(3) (note)
10
Omit "or 1.5B", substitute ", 1.5B or 4.1".
11
12 Subsection 50-52(3) (note)
12
Omit "and 50-60", substitute ", 50-60 and 50-72".
13
13 Paragraphs 50-60(c) and (d)
14
Repeal the paragraphs, substitute:
15
(c) distributes solely, and has at all times since 1 July 1997
16
distributed solely, to either or both of the following:
17
(i) a charitable fund, foundation or institution which, to the
18
best of the trustee's knowledge, is located in Australia
19
and incurs its expenditure principally in Australia and
20
pursues its charitable purposes solely in Australia;
21
Philanthropy Schedule 1
Tax Laws Amendment (2005 Measures No. 3) Bill 2005 No. , 2005 5
(ii) a charitable fund, foundation or institution that, to the
1
best of the trustee's knowledge, meets the description
2
and requirements in item 1 or 2 of the table in
3
section 30-15.
4
14 After section 50-70
5
Insert:
6
50-72 Special condition for item 4.1
7
(1) A fund covered by item 4.1 is not exempt from income tax unless
8
the fund:
9
(a) is applied for the purposes for which it is established; and
10
(b) distributes solely, and has at all times since the time
11
mentioned in subsection (2) distributed solely, to a fund,
12
authority or institution that:
13
(i) meets the description and requirements in item 1 of the
14
table in section 30-15; and
15
(ii) is an
*
exempt entity.
16
(2) The time is the start of the income year after the income year in
17
which the Tax Laws Amendment (2005 Measures No. 3) Act 2005
18
receives the Royal Assent.
19
15 Paragraph 50-75(3)(b)
20
Repeal the paragraph, substitute:
21
(b) distributes solely, and has at all times since 1 July 1997
22
distributed solely, to a charitable fund, foundation or
23
institution described in subparagraph 50-60(c)(i) or (ii);
24
16 At the end of subsection 50-110(2)
25
Add "or item 4.1 of the table in section 50-20".
26
17 Subsection 50-110(5)
27
Omit ", either".
28
18 Paragraph 50-110(5)(a)
29
After "section 50-5", insert "and item 4.1 of the table in section 50-20".
30
19 At the end of subsection 50-110(5)
31
Schedule 1 Philanthropy
6 Tax Laws Amendment (2005 Measures No. 3) Bill 2005 No. , 2005
Add:
1
; or (c) if the entity is covered by item 4.1 of the table in
2
section 50-20 and has not made any distributions--there
3
must be reasonable grounds for believing that the entity will
4
satisfy section 50-72.
5
20 After subsection 118-60(1)
6
Insert:
7
(1A) If the only reason the gain or loss is not disregarded under
8
subsection (1) is because the property has not been valued by the
9
Commissioner at more than $5,000, then, for the purposes of that
10
subsection, it is taken to have been so valued.
11
21 Subsection 207-115(2) (heading)
12
Repeal the heading, substitute:
13
Income tax exempt charitable or other institutions
14
22 Paragraph 207-115(2)(a)
15
After "section 50-5", insert "or item 4.1 of the table in section 50-20".
16
23 Application
17
The amendments made by this Schedule apply to the income year after
18
the income year in which this Act receives the Royal Assent and each
19
later income year.
20
International shipping and airline profits Schedule 2
Tax Laws Amendment (2005 Measures No. 3) Bill 2005 No. , 2005 7
1
Schedule 2--International shipping and airline
2
profits
3
4
Income Tax Assessment Act 1936
5
1 Paragraph 23AH(1)(a)
6
After "deriving foreign branch income,", insert "(except income and
7
capital gains from the operation of ships or aircraft in international
8
traffic)".
9
2 After subsection 23AH(14)
10
Insert:
11
(14A) This section does not apply to foreign income, or to a capital gain
12
or capital loss, of a company to the extent that the income, gain or
13
loss is from:
14
(a) the operation of ships or aircraft in international traffic at or
15
through a PE of the company in a listed country or unlisted
16
country; or
17
(b) things that are ancillary to that operation.
18
(14B) A company operates a ship or aircraft in international traffic if the
19
company operates it for transporting passengers or goods between
20
a place in one country and a place in another country.
21
3 Application
22
The amendments made by this Schedule apply to income years starting
23
on or after 1 July 2004.
24
Schedule 3 Secrecy provisions
8 Tax Laws Amendment (2005 Measures No. 3) Bill 2005 No. , 2005
1
Schedule 3--Secrecy provisions
2
3
Taxation Administration Act 1953
4
1 Subsection 2(1) (before paragraph (da) of the definition of
5
head)
6
Insert:
7
(dag) in the case of the Corruption and Crime Commission of
8
Western Australia--the Commissioner for that Commission;
9
2 Subsection 2(1) (after paragraph (daf) of the definition of
10
law enforcement agency)
11
Insert:
12
(dag) the Corruption and Crime Commission of Western Australia;
13
or
14
3 Application
15
The amendments made by this Schedule apply to communications or
16
disclosures of information after the day on which this item commences
17
(regardless of whether the information was acquired before or after that
18
commencement).
19
Rebatable employer status Schedule 4
Tax Laws Amendment (2005 Measures No. 3) Bill 2005 No. , 2005 9
1
Schedule 4--Rebatable employer status
2
3
Fringe Benefits Tax Assessment Act 1986
4
1 Paragraph 65J(1)(baa)
5
After "charitable institution", insert "(other than an institution of the
6
Commonwealth, a State or a Territory)".
7
2 Paragraph 123E(1)(a)
8
Omit "subsections (2) and (3)", substitute "subsection (2)".
9
3 Application
10
The amendments made by this Schedule apply to benefits provided on
11
or after 1 July 2005.
12
Schedule 5 Dependent child age criterion
10 Tax Laws Amendment (2005 Measures No. 3) Bill 2005 No. , 2005
1
Schedule 5--Dependent child age criterion
2
3
Income Tax Assessment Act 1936
4
1 Subsection 159J(2) (cell at table item dealing with Class 3,
5
column headed "Dependant")
6
Omit "16", substitute "21".
7
2 Paragraphs 159L(1)(a) and (b)
8
Omit "16", substitute "21".
9
3 Subparagraphs 251R(3)(b)(ii) and (iii)
10
Omit "16", substitute "21".
11
4 Application
12
The amendments made by this Schedule apply to assessments for the
13
2005-2006 income year and later income years.
14

 

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