Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT (NO. 6) 1999 NO. 54, 1999 - SCHEDULE 5--"Catch-up"

1 Section 11-15 (table item headed "education")

Repeal the item, substitute:

education
bursary, educational allowance etc.	51-10 and 51-35
CRAFT scheme, employer's income from	51-10
foreign student, scholarship and bursary to	23(ya)
full-time student, income from a scholarship, bursary, other educational allowance or educational assistance	51-10 and 51-35
isolated child, income for the provision of education of	51-10 and 51-40
secondary student, income for the provision of education of	51-10 and 51-40

2 Section 11-15 (table item headed "social security or like payments")

Before:

disability services payment

53-10

insert:

Commonwealth education or training payment

Subdivision 52-F

3 Section 51-10 (before table item 2.1)

Insert:

2.1A	a full-time student at a school, college or university	a scholarship, bursary, educational allowance or educational assistance	see section 51-35
2.1B	(a) a student; or (b) a recipient of a payment in respect of a student	a payment under a Commonwealth scheme for assistance of: (a) secondary education; or (b) the education of isolated children	see section 51-40

4 Section 51-30 (link note)

Repeal the link note.

5 After section 51-30

Insert:

51-35 Payments to a full-time student at a school, college or university The following payments made to or on behalf of a full-time student at a school, college or university are not exempt from income tax under item 2.1A of the table in section 51-10:

(a) a payment by the Commonwealth for assistance for secondary education or in connection with education of isolated children;

(b) a ^* Commonwealth education or training payment;

(c) a payment by a person or an authority on the condition that the student will (or will if required) become, or continue to be, an employee of the person or authority;

(d) a payment by a person or an authority on the condition that the student will (or will if required) enter into, or continue to be a party to, a contract with the person or authority that is wholly or principally for the labour of the student;

(e) a payment under a scholarship where the scholarship is not provided principally for educational purposes;

(f) an education entry payment under Part 2.13A of the Social Security Act 1991 .

Note: The whole or part of a Commonwealth education or training payment may be exempt under Subdivision 52-F.

(a) a ^* Commonwealth education or training payment;

(b) an education entry payment under Part 2.13A of the Social Security Act 1991 .

Note: The whole or part of a Commonwealth education or training payment may be exempt under Subdivision 52-F.

Add:

Subdivision 52-F--Exemption of Commonwealth education or training payments Table of sections

52-140 Supplementary amount of a Commonwealth education or training payment is exempt

52-145 Meaning of Commonwealth education or training payment

52-140 Supplementary amount of a Commonwealth education or training payment is exempt (1) This section tells you about the income tax treatment of a ^* Commonwealth education or training payment.

(2) The ^* supplementary amount of the payment is exempt from income tax.

(3) The supplementary amount is the total of:

(a) so much of the payment as is included to assist you with, or to reimburse you for, the costs of any one or more of the following:

(i) rent;

(ii) living in a remote area;

(iii) commencing employment;

(iv) travel to, or participation in, courses, interviews, education or training;

(v) a child or children wholly or substantially dependent on you;

(vi) telephone bills;

(vii) living away from your usual residence;

(viii) maintaining your usual residence while living away from that residence;

(ix) accommodation, books or equipment;

(x) discharging a HEC assessment debt (within the meaning of Chapter 4 of the Higher Education Funding Act 1988 );

(xi) transport in travelling to undertake education or training, or to visit your usual residence when undertaking education or training away from that residence;

(xii) if you are disabled--acquiring any special equipment, services or transport as a result of the disability;

(xiii) anything that would otherwise prevent you from beginning, continuing or completing any education or training; and

(b) so much of the payment as is included by way of pharmaceutical allowance.

(a) to or on behalf of a participant in a ^* Commonwealth labour market program; or

(b) to or on behalf of a student under:

(i) the scheme known as ABSTUDY; or

(ii) the scheme known as the Assistance for Isolated Children Scheme; or

(iii) the scheme known as the Veterans' Children Education Scheme;

in respect of a period commencing at a time when the student was at least 16 years old.

(a) unemployed persons are given training in skills to improve their employment prospects; or

(b) unemployed persons are assisted in obtaining employment or to become self-employed; or

(c) employed persons are given training in skills and other assistance to aid them in continuing to be employed by their current employer or in obtaining other employment.

Insert:

Commonwealth education or training payment has the meaning given by subsection 52-145(1).

8 Subsection 995- 1(1)

Insert:

Commonwealth labour market program has the meaning given by subsection 52-145(2).

9 Subsection 995- 1(1) (table in the definition of supplementary amount )

Repeal the table, substitute:

Supplementary amount of a payment
Item	Supplementary amount of this kind of payment:	has the meaning given by:
1	Commonwealth education or training payment	section 52-140
2	Exceptional circumstances relief payment, or payment of restart income support or farm household support	section 53-15
3	Payment made because of the Veterans' Entitlements (Transitional Provisions and Consequential Amendments) Act 1986	section 52-105
4	Social security payment	section 52-15
5	Veterans' affairs payment	section 52-70

10 Application of amendments

The amendments made by this Part apply to assessments for the 1998-99 income year and later income years.

Part 2--Amendment of the Income Tax Assessment Act 1936

11 At the end of section 22A

Add:

Provisions cut off from 1998-99

(2) A provision of this Act set out in the second column of the table does not apply to an assessment for the 1998-99 year of income or a later year of income.

Note: The last column of the table shows the provision of the Income Tax Assessment Act 1997 that applies instead.

Old exempt income provisions that no longer apply
Item	Provision of this Act	Corresponding provision of the Income Tax Assessment Act 1997
1	Paragraph 23(z)	table item 2.1A in section 51-10
2	Paragraph 23(zaa)	table item 2.1B in section 51-10

12 At the end of section 24

Add:

(2) Subdivision BA does not apply to an assessment for the 1998-99 year of income or a later year of income.

Note: For the law applying to the 1998-99 year of income and later years of income, see Subdivision 52-F of the Income Tax Assessment Act 1997 .

Repeal the paragraph, substitute:

(e) a payment that is covered by Division 52, 53 or 55 of the Income Tax Assessment Act 1997 , but that is not exempt from income tax under that Division;

Omit "Subdivision BA of Division 1AA of Part III of this Act or".

15 Application

The amendment made by item 13 applies for the purpose of determining whether a lump sum payment is eligible income in the 1998-99 year of income or a later year of income.