Commonwealth Numbered Acts Commonwealth Numbered Acts
Income Tax Assessment Act 1997
1 Section 10‑5 (after table item headed "child")
Insert:
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collecting societies |
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payments of royalties by copyright collecting societies... |
15‑22 |
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payments of royalties by resale royalty collecting society.............................................................................................. |
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2 Section 10‑5 (table item headed "payments to members of copyright collecting societies")
Repeal the item.
3 Section 11‑15 (table item headed "copyright collecting societies")
Repeal the item, substitute:
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copyright collecting societies |
51‑43 |
4 Section 11‑15 (after table item headed "life insurance companies")
Insert:
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resale royalty collecting societies |
51‑45 |
5 Subsection 15‑20(2)
After "section 15‑22", insert "or 15‑23".
6 Subsection 15‑22(2)
Omit "tax", substitute " * tax".
7 After section 15‑22
Insert:
15‑23 Payments of resale royalties by resale royalty collecting society
(1) This section, instead of Division 6 of Part III of the Income Tax Assessment Act 1936 , applies to a payment that the * resale royalty collecting society makes to you under section 26 of the Resale Royalty Right for Visual Artists Act 2009 .
(2) Your assessable income includes the amount of the payment, except to the extent that the payment represents an amount on which the directors of the society are or have been assessed, and are liable to pay * tax, under section 98, 99 or 99A of the Income Tax Assessment Act 1936 .
Note: Section 410‑50 of this Act requires the resale royalty collecting society to give you a notice at the time of payment.
8 Section 51‑43
Repeal the section, substitute:
51‑43 Income collected or derived by copyright collecting society
(1) This section applies to a * copyright collecting society if Division 6 of Part III of the Income Tax Assessment Act 1936 applies to the income of the society.
(2) The following are exempt from income tax:
(a) * royalties, and interest on royalties, collected or * derived by the society in an income year;
(b) any other amounts, relating to copyright, that are:
(i) derived by the society in an income year; and
(ii) prescribed by the regulations for the purposes of this paragraph;
(c) other * ordinary income and * statutory income derived by the society in an income year, to the extent that it does not exceed the lesser of:
(i) 5% of the total amount of the * ordinary income and * statutory income collected and derived by the society in the income year; and
(ii) $5 million or such other amount as is prescribed by the regulations for the purposes of this subparagraph.
51‑45 Income collected or derived by resale royalty collecting society
(1) This section applies to the * resale royalty collecting society if Division 6 of Part III of the Income Tax Assessment Act 1936 applies to the income of the society.
(2) The following are exempt from income tax:
(a) * resale royalties, and interest on resale royalties, collected or * derived by the society in an income year;
(b) any other amounts, relating to * resale royalty rights, that are:
(i) derived by the society in an income year; and
(ii) prescribed by the regulations for the purposes of this paragraph;
(c) other * ordinary income and * statutory income derived by the society in an income year, to the extent that it does not exceed the lesser of:
(i) 5% of the total amount of the ordinary income and statutory income collected and derived by the society in the income year; and
(ii) $5 million or such other amount as is prescribed by the regulations for the purposes of this subparagraph.
9 Transitional--regulations
(1) Regulations:
(a) made for the purposes of paragraph (b) of the definition of copyright income in subsection 995‑1(1) of the Income Tax Assessment Act 1997 ; and
(b) in force just before the commencement of this item;
have effect, from that commencement, as if they had been made for the purposes of paragraph 51‑43(2)(b) of that Act, as substituted by this Schedule.
(2) Regulations:
(a) made for the purposes of subparagraph 51‑43(2)(b)(ii) of the Income Tax Assessment Act 1997 ; and
(b) in force just before the commencement of this item;
have effect, from that commencement, as if they had been made for the purposes of subparagraph 51‑43(2)(c)(ii) of that Act, as substituted by this Schedule.
10 Division 410
Repeal the Division, substitute:
Division 410 -- Copyright and resale royalty collecting societies
Table of Subdivisions
Guide to Division 410
410‑1 What this Division is about
This Division sets out rules that apply whenever:
(a) a copyright collecting society to which section 51‑43 applies makes a payment to a member of the society; or
(b) the resale royalty collecting society pays a resale royalty.
Subdivision 410‑A -- Notice of payments
Table of sections
410‑5 Copyright collecting society must give notice to member of society
410‑50 Resale royalty collecting society must give notice to holder of resale royalty right
410‑5 Copyright collecting society must give notice to member of society
(1) A * copyright collecting society must give a * member of the society notice of any payment it makes to the member, if section 51‑43 applies to the society.
(2) The society must give the notice at the time of the payment.
(3) The notice must be in the * approved form.
Note: Under section 288‑75 in Schedule 1 to the Taxation Administration Act 1953 a society is liable to an administrative penalty for failing to give a notice required under this section.
410‑50 Resale royalty collecting society must give notice to holder of resale royalty right
(1) The * resale royalty collecting society must give an entity notice of any payment it makes to the entity under section 26 of the Resale Royalty Right for Visual Artists Act 2009 , if section 51‑45 of this Act applies to the society.
(2) The society must give the notice at the time of the payment.
(3) The notice must be in the * approved form.
Note: Under section 288‑75 in Schedule 1 to the Taxation Administration Act 1953 the society is liable to an administrative penalty for failing to give a notice required under this section.
11 Subsection 995‑1(1) (subparagraph (b)(iii) of the definition of copyright collecting society )
After "subparagraph (ii)", insert "or, if the company is the * resale royalty collecting society, relate to the company's functions or duties as resale royalty collecting society".
12 Subsection 995‑1(1) (subparagraph (b)(iv) of the definition of copyright collecting society )
Omit " * copyright income", substitute "income of a kind mentioned in paragraph 51‑43(2)(a) or (b)".
13 Subsection 995‑1(1) (definition of copyright income )
Repeal the definition.
14 Section 995‑1 (definition of non‑copyright income )
Repeal the definition.
15 Subsection 995‑1(1)
Insert:
"resale royalty" means resale royalty under the Resale Royalty Right for Visual Artists Act 2009 .
16 Subsection 995‑1(1)
Insert:
"resale royalty collecting society" means the collecting society, within the meaning given by the Resale Royalty Right for Visual Artists Act 2009 .
17 Subsection 995‑1(1)
Insert:
"resale royalty right" has the meaning given by the Resale Royalty Right for Visual Artists Act 2009 .
Income Tax (Transitional Provisions) Act 1997
18 Subsection 410‑1(1)
Omit "copyright income, and non‑copyright income", substitute "ordinary income, and statutory income,".
Taxation Administration Act 1953
19 Section 288‑75 in Schedule 1
Repeal the section, substitute:
288‑75 Administrative penalty for a copyright or resale royalty collecting society
(1) A * copyright collecting society is liable to an administrative penalty of 20 penalty units if the society fails to give a notice as required by section 410‑5 of the Income Tax Assessment Act 1997 .
(2) The * resale royalty collecting society is liable to an administrative penalty of 20 penalty units if the society fails to give a notice as required by section 410‑50 of the Income Tax Assessment Act 1997 .
Note: See section 4AA of the Crimes Act 1914 for the current value of a penalty unit.
20 Application
The amendments made by this Schedule apply in relation to:
(a) the 2009‑10 income year; and
(b) later income years.
[ Minister's second reading speech made in--
House of Representatives on 16 September 2009
Senate on 23 November 2009 ]
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(173/09) |