Commonwealth Numbered Acts

INCOME TAX LAWS AMENDMENT ACT 1980 No. 19 of 1980 - SECT 12

12. (1) Section 98 of the Principal Act is amended by adding at the end
thereof the following sub-sections:



"(2) Where a beneficiary of a trust estate-

   (a)  is deemed to be presently entitled to a share of the income of the
        trust estate of a year of income by virtue of the operation of
        sub-section (2) of section 95A;

   (b)  is not a beneficiary to whom sub-section (1) or (1A) of section 97A
        applies in relation to the year of income; and

   (c)  is not under a legal disability, the trustee of the trust estate shall
        be assessed and liable to pay tax in respect of-

   (d)  so much of that share of the net income of the trust estate as is
        attributable to a period when the beneficiary was a resident; and

   (e)  so much of that share of the net income of the trust estate as is
        attributable to a period when the beneficiary was not a resident and
        is also attributable to sources in Australia, as if it were the income
        of an individual and were not subject to any deduction other than the
        concessional deductions (if any) that would have been allowable to the
        beneficiary if the beneficiary had been assessed in respect of the
        amount, or the sum of the amounts, applicable by virtue of paragraphs
        (d) and (e).



"(3) The net income of a trust estate in respect of which the trustee of the
trust estate is liable to be assesed and to pay tax under sub-section (2) does
not include so much of the net income of the trust estate as, in the opinion
of the Commissioner, relates to the income of the trust estate to which a
beneficiary, being-

   (a)  a body, association or fund to which paragraph (d), (e), (ea), (eb),
        (ec), (f), (g), (h), (i) or (j) of section 23 applies;

   (b)  an organization that is prescribed for the purposes of paragraph (x)
        of that section; or

   (c)  an organization the income of which is exempt from tax by virtue of a
        regulation in force under the International Organizations (Privileges
        and Immunities) Act 1963, is deemed, by virtue of sub-section (2) of
        section 95A, to be presently entitled.



"(4) A reference in this Act to net income of a trust estate in respect of
which a trustee is liable to be assessed and to pay tax in pursuance of this
section shall be read as including a reference to net income of the trust
estate in respect of which the trustee would, but for sub-section (3) of this
section, be liable to be assessed and to pay tax in pursuance of this
section.".

(2) The amendment made by sub-section (1) applies to assessments in respect of
income of the year of income that commenced on 1 July 1979 and in respect of
income of all subsequent years of income.