Commonwealth Numbered Acts

TAX LAWS AMENDMENT (2011 MEASURES NO. 9) ACT 2012 (NO. 12, 2012) - SCHEDULE 3

Part 1 -- Increasing financial acquisitions threshold

A New Tax System (Goods and Services Tax) Act 1999

1  Paragraphs 189-5(1)(a) and (2)(a)

Omit "$50,000", substitute "$150,000".

2  Paragraphs 189-10(1)(a) and (2)(a)

Omit "$50,000", substitute "$150,000".

3  Application of amendments

The amendments made by this Part apply for working out whether you exceed the financial acquisitions threshold at a time during July 2012 or a later month.

Part 2 -- Treatment of borrowings

A New Tax System (Goods and Services Tax) Act 1999

4  Paragraph 11-15(5)(a)

After "borrowing", insert "(other than through a * deposit account you make available)".

5  Section 195-1

Insert:

"deposit account" : an account is a deposit account if:

                     (a)  the account is made available by an Australian ADI (within the meaning of the Corporations Act 2001 ) in the course of carrying on a banking business (within the meaning of the Banking Act 1959 ); and

                     (b)  amounts credited to the account represent money taken by the ADI on deposit (other than as part-payment for identified goods or services); and

                     (c)  amounts credited to the account do not relate to a debenture (as defined in section 9 of the Corporations Act 2001 ) of the ADI.

6  Application of amendments

The amendments made by this Part apply in relation to acquisitions made on or after 1 July 2012.

Part 3 -- Hire purchase agreements

A New Tax System (Goods and Services Tax) Act 1999

7  Section 29-39 (after table item 8A)

Insert:

8  Section 29-69 (at the end of the table)

Add:

9  After section 156-22

Insert:

156-23   Certain supplies or acquisitions under hire purchase agreements treated as not on progressive or periodic basis

                   For the purposes of this Division, a supply or acquisition of goods or credit under a * hire purchase agreement is treated as not being a supply or acquisition made on a progressive or periodic basis.

10  After Division 157

Insert:

Division 158 -- Hire purchase agreements

158-1   What this Division is about

158-5   Treat as not accounting on a cash basis

             (1)  This section applies if you * account on a cash basis.

             (2)  This Act and the regulations apply in relation to:

                     (a)  an acquisition you make under a * hire purchase agreement; or

                     (b)  an input tax credit to which you are entitled, or an * adjustment you have, under subsection 58-10(1) for an acquisition made under a hire purchase agreement;

as if you do not * account on a cash basis.

11  Application of amendments

The amendments made by this Part apply in relation to hire purchase agreements entered into on or after 1 July 2012.