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This is a Bill, not an Act. For current law, see the Acts databases.
2016-2017
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Treasury Laws Amendment (Enterprise
Tax Plan Base Rate Entities) Bill 2017
No. , 2017
(Treasury)
A Bill for an Act to amend the law relating to
taxation, and for related purposes
No. , 2017
Treasury Laws Amendment (Enterprise Tax Plan Base Rate Entities)
Bill 2017
i
Contents
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 1
3
Schedules ........................................................................................... 2
Schedule 1--Main amendments
3
Part 1--Amendments applying from the 2017-18 year of
income
3
Income Tax Rates Act 1986
3
Part 2--Application of amendments
5
Schedule 2--Consequential amendments
6
Part 1--Amendments applying from the 2017-18 income year
6
Income Tax Assessment Act 1997
6
Part 2--Contingent amendments
7
Income Tax Rates Act 1986
7
No. , 2017
Treasury Laws Amendment (Enterprise Tax Plan Base Rate Entities)
Bill 2017
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 (Enterprise Tax Plan
5
Base Rate Entities) Act 2017.
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 (Enterprise Tax Plan Base Rate Entities)
Bill 2017
No. , 2017
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
Immediately after the commencement of
Part 2 of Schedule 1 to the Treasury Laws
Amendment (Enterprise Tax Plan) Act 2017.
1 July 2017
3. Schedule 1,
Part 2
The day this Act receives the Royal Assent.
4. Schedule 2,
Part 1
Immediately after the commencement of
Part 2 of Schedule 1 to the Treasury Laws
Amendment (Enterprise Tax Plan) Act 2017.
1 July 2017
5. Schedule 2,
Part 2
At the same time as Part 5 of Schedule 1 to
the Treasury Laws Amendment (Enterprise
Tax Plan No. 2) Act 2017 commences.
However, the provisions do not commence
at all if that Part does not commence.
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
Main amendments Schedule 1
Amendments applying from the 2017-18 year of income Part 1
No. , 2017
Treasury Laws Amendment (Enterprise Tax Plan Base Rate Entities)
Bill 2017
3
Schedule 1--Main amendments
1
Part 1--Amendments applying from the 2017-18 year
2
of income
3
Income Tax Rates Act 1986
4
1 Subsection 3(1)
5
Insert:
6
base rate entity passive income has the meaning given by
7
section 23AB.
8
2 Section 23AA
9
Repeal the section, substitute:
10
23AA Meaning of base rate entity
11
An entity is a base rate entity for a year of income if:
12
(a) no more than 80% of its assessable income for the year of
13
income is base rate entity passive income; and
14
(b) its aggregated turnover (within the meaning of the Income
15
Tax Assessment Act 1997) for the year of income, worked out
16
as at the end of that year, is less than $25 million.
17
23AB Meaning of base rate entity passive income
18
Base rate entity passive income is assessable income that is any of
19
the following:
20
(a) a distribution (within the meaning of the Income Tax
21
Assessment Act 1997) by a corporate tax entity (within the
22
meaning of that Act), other than a non-portfolio dividend
23
(within the meaning of section 317 of the Assessment Act);
24
(b) an amount of a franking credit (within the meaning of the
25
Income Tax Assessment Act 1997) on such a distribution;
26
(c) a non-share dividend (within the meaning of the Income Tax
27
Assessment Act 1997) by a company;
28
Schedule 1 Main amendments
Part 1 Amendments applying from the 2017-18 year of income
4
Treasury Laws Amendment (Enterprise Tax Plan Base Rate Entities)
Bill 2017
No. , 2017
(d) interest income (within the meaning of the Assessment Act),
1
royalties and rent;
2
(e) a gain on a qualifying security (within the meaning of
3
Division 16E of Part III of the Assessment Act);
4
(f) a net capital gain (within the meaning of the Income Tax
5
Assessment Act 1997);
6
(g) an amount included in the assessable income of a partner in a
7
partnership or of a beneficiary of a trust estate under
8
Division 5 or 6 of Part III of the Assessment Act, to the
9
extent that the amount is referable (either directly or
10
indirectly through one or more interposed partnerships or
11
trust estates) to another amount that is base rate entity passive
12
income under a preceding paragraph of this definition.
13
Main amendments Schedule 1
Application of amendments Part 2
No. , 2017
Treasury Laws Amendment (Enterprise Tax Plan Base Rate Entities)
Bill 2017
5
Part 2--Application of amendments
1
3 Application of amendments
2
The amendments made by Part 1 of this Schedule apply to the 2017-18
3
year of income and later years of income.
4
Schedule 2 Consequential amendments
Part 1 Amendments applying from the 2017-18 income year
6
Treasury Laws Amendment (Enterprise Tax Plan Base Rate Entities)
Bill 2017
No. , 2017
Schedule 2--Consequential amendments
1
Part 1--Amendments applying from the 2017-18
2
income year
3
Income Tax Assessment Act 1997
4
1 Subsection 995-1(1) (definition of corporate tax rate for
5
imputation purposes)
6
Repeal the definition, substitute:
7
corporate tax rate for imputation purposes, of an entity for an
8
income year, means:
9
(a) unless paragraph (b) applies--the entity's
*
corporate tax rate
10
for the income year, worked out on the assumptions that:
11
(i) the entity's
*
aggregated turnover for the income year is
12
equal to its aggregated turnover for the previous income
13
year; and
14
(ii) the entity's base rate entity passive income (within the
15
meaning of the Income Tax Rates Act 1986) for the
16
income year is equal to its base rate entity passive
17
income for the previous income year; and
18
(iii) the entity's assessable income for the income year is
19
equal to its assessable income for the previous income
20
year; or
21
(b) if the entity did not exist in the previous income year--the
22
rate of tax in respect of the taxable income of a company
23
covered by paragraph 23(2)(a) of the Income Tax Rates Act
24
1986.
25
2 Application of amendment
26
The amendment made by this Part applies to the 2017-18 income year
27
and later income years.
28
Consequential amendments Schedule 2
Contingent amendments Part 2
No. , 2017
Treasury Laws Amendment (Enterprise Tax Plan Base Rate Entities)
Bill 2017
7
Part 2--Contingent amendments
1
Income Tax Rates Act 1986
2
3 Subsection 3(1) (definition of base rate entity passive
3
income)
4
Repeal the definition.
5
4 Section 23AB
6
Repeal the section.
7
5 Application of amendments
8
The amendments made by this Part apply to the 2023-24 year of income
9
and later years of income.
10