House of Representatives

Tax Laws Amendment (2007 Measures No. 2) Bill 2007

Tax Laws Amendment (2007 Measures No. 2) Act 2007

Explanatory Memorandum

(Circulated by authority of the Treasurer, the Hon Peter Costello MP)

Index

Schedule 1: Effective life provisions

Bill reference Paragraph number
Item 1, items 11 to 13 in the table in subsection 40-95(7) 1.12
Item 2, subsection 40-95(8) 1.29
Item 3, subsection 40-95(10) 1.16
Item 3, paragraph 40-95(11)(a) 1.17
Item 3, paragraph 40-95(11)(b) 1.17
Item 4, subsection 40-105(4) 1.15
Item 5, subsection 40-110(3A) 1.26
Item 5, subsection 40-110(3B) 1.22
Item 6, subsection 40-110(4) 1.23
Item 7 1.27

Schedule 2: Taxation of boating activities

Bill reference Paragraph number
Item 1, subsection 26-47(2) 2.9, 2.12, 2.14, 2.27
Item 1, subsection 26-47(3) 2.10, 2.17
Item 1, subsection 26-47(4) 2.10, 2.17, 2.20
Item 1, subsections 26-47(5), (6) and (9) 2.11, 2.21
Item 1, subsections 26-47(6) and (7) 2.24
Item 1, subsection 26-47(8) 2.11, 2.21, 2.25
Item 1, subsections 26-47(9) and (10) 2.26
Items 1 and 4, subsection 26-47(5) and section 118-80 2.22
Items 2 and 3, subsections 110-38(5) and 110-55(9E) 2.23
Item 5, paragraph 69-5(3)(e) of the A New Tax System (Goods and Services Tax) Act 1999 2.31
Item 6, item in the table relating to boats in section 12-5 2.29
Items 7 to 17, paragraphs 25-50(1)(a), (b) to (g) and 26-50(7)(a), subsections 25-50(1) and (5) to (7) 2.30
Item 18 2.28

Schedule 3: Research and development

Bill reference Paragraph number
Item 1 3.11
Item 2 3.8
Items 3 and 22 3.7
Item 4 3.17
Item 5 3.9
Item 6 3.19
Items 7 and 8 3.10
Item 9 3.20
Items 10 and 15 3.14
Items 11 and 16 3.24
Items 12 and 13 3.13
Item 14 3.23
Item 17 3.15
Item 18 3.25
Item 19 3.12
Item 20 3.22
Item 21 3.16

Schedule 4: Donation of listed shares to deductible gift recipients

Bill reference Paragraph number
Items 1 to 6, subsection 30-15(2), items 1 and 2 in the table 4.8
Items 1, 4 and 7, subsection 30-15(2), items 1, 2 and 7 in the table 4.10, 4.12, 4.14, 4.16
Items 7 and 9, subsection 30-15(2), item 7 in the table 4.18
Item 8, subsection 30-15(2), item 7 in the table 4.19
Item 10 4.20

Schedule 5: Specifically listed deductible gift recipients

Bill reference Paragraph number
Item 1 5.9, 5.10
Items 1 and 3 to 6 5.13
Items 2, 7 and 8 5.11, 5.12
Items 3 and 5 5.7
Items 3 to 6 5.6
Items 4 and 6 5.8

Schedule 6: Deductions for contributions relating to fund-raising events

Bill reference Paragraph number
Items 1 to 9, subsection 30-15(2), items 7 and 8 in the table 6.8
Item 10 6.10

Schedule 7: Technical corrections

Bill reference Paragraph number
Item 1, paragraph 272-100(d) in Schedule 2F to the ITAA 1936 7.13
Item 2, paragraph 58-5(2)(a) of the ITAA 1997 7.16
Items 3 to 9 and 11 to 13, subparagraph 58-10(2)(b)(i), paragraphs 58-5(4)(a) and (b), 58-5(5)(a), 58-10(1)(a), 58-10(2)(a) and (c) and 58-85(1)(a) and subsection 58-10(1) of the ITAA 1997 7.29
Items 7 to 11, subparagraphs 58-10(2)(b)(i) to (iii), and paragraphs 58-10(1)(a), (2)(a) and (2)(c) 7.17
Item 14, subsection 995-1(1) of the ITAA 1997, definition of 'exempt entity' 7.9
Item 15, and subclause 2(1), item 5 in the table 7.20
Item 16, and subclause 2(1), item 5 in the table 7.20

Schedule 8: Venture capital

Bill reference Paragraph number
Items 1, 6, 16, 18, 26, 39, 41, 42 and 47 to 53, section 118-400, subsections 118-405(4) to (7), subsections 118-410(5) and (6), subsections 118-415(4) to (6), section 118-425 (heading), paragraph 118-435(2)(b), paragraph 118-425(11)(b), subparagraph 118-425(11)(c)(iii), paragraph 118-425(11)(d), paragraphs 118-435(1)(b) to (d), paragraphs 118-435(2)(c) and (d), subsection 118-440(1) (note) and subsection 995-1(1) (definition of 'eligible venture capital investment') of the ITAA 1997 8.17
Items 15, 17, 24 to 27, 38 and 40, subsection 118-410(4) (heading), subsection 118-415(3) (heading), subsection 118-425(9), paragraph 118-425(11)(a), subparagraph 118-425(11)(c)(i) and subsection 118-425(15A) 8.14
Items 19 to 25, paragraph 118-420(1)(c), paragraph 118-420(3)(b), paragraphs 118-420(4)(a) and (b), paragraphs 118-420(5)(b) and (c) and subsection 118-420(6) 8.23
Items 27 to 29 and 34, paragraph 118-425(1)(b) and subparagraphs 118-425(1)(b)(ii) and (iii) and subsection 118-425(9) of the ITAA 1997 8.12
Items 30 and 43, subsection 118-425(2) and subsection 118-425(12A) of the ITAA 1997 8.20
Items 31 to 33, subsection 118-425(5), paragraphs 118-425(5)(a) and (b) and subsection 118-425(5) (note) of the ITAA 1997 8.25
Items 35 to 37, subsection 118-425(10) (heading) and subsection 118-425(10) of the ITAA 1997 8.21
Items 38 and 40, paragraph 118-425(11)(a) and subparagraphs 118-425(11)(c)(i) and (ia) 8.13
Item 44, section 118-427 of the ITAA 1997 8.15
Items 44 to 46, paragraph 118-427(1)(a), paragraphs 118-430(a) and (b) of the ITAA 1997 8.15
Item 44, paragraph 118-427(1)(b) of the ITAA 1997 8.15
Item 44, paragraph 118-427(1)(c), subsections 118-427(3) and (13) of the ITAA 1997 8.15
Item 44, paragraph 118-427(1)(c) and subsections 118-427(4) and (14) of the ITAA 1997 8.15
Item 44, paragraph 118-427(1)(c) and subsection 118-427(5) of the ITAA 1997 8.15
Item 44, paragraph 118-427(1)(c) and subsection 118-427(6) of the ITAA 1997 8.15
Item 44, paragraph 118-427(1)(d) and subsection 118-427(2) of the ITAA 1997 8.15
Item 44, paragraph 118-427(1)(c) and subsection 118-427(8) of the ITAA 1997 8.15
Items 44, 52 and 131 to 138, paragraph 118-427(1)(c), subsection 118-427(7), subsection 118-440(1) (note), subsection 118-440(1), subsections 118-440(3) and (5), paragraphs 118-440(5)(a) and (b), paragraphs 118-440(7)(a) and (c), subsections 118-440(8) and (9) of the ITAA 1997 8.15
Item 44, subsection 118-427(6) of the ITAA 1997 8.26
Item 44, subsection 118-427(9) of the ITAA 1997 8.15
Item 44, subsection 118-427(12) of the ITAA 1997 8.16
Item 54, paragraph 9-1(1)(a) of the VC Act 8.24
Item 54, paragraph 9-1(1)(d) of the VC Act 8.27
Items 56 to 84, paragraph 9-1(1)(e), subparagraphs 9-1(1)(e)(ii) and (iii), paragraph 9-1(1)(f), subparagraphs 9-5(1)(d)(ii) to (iv), paragraph 9-5(1)(e), paragraph 9-10(1)(aa), paragraph 15-1(ga), paragraph 15-1(gb), paragraphs 15-10(c), to (f), paragraph 21-5(3)(d), paragraph 21-5(3)(f), paragraph 21-20(1)(g), paragraph 21-20(1)(h), paragraph 21-20(1)(j), paragraph 21-20(1)(k), paragraph 21-20(1)(l), section 25-1, section 25-1 (note), subsections 25-5(1A) and (2), subsections 25-10(1A) and (2), subsections 25-15(1A) and (2) of the VC Act 8.18
Item 85 8.88
Items 86, 87 and 95, subsection 6(1), subsections 18A(1) and (2) and subparagraph 128B(3)(h)(ii) of the ITAA 1936; items 96 to 99, 104, 116, 120 to 129, 151 to 153, 155 and 156, subsection 4-10(2) (note 2), subsection 9-5(2) (note 2), section 11-15 (item in the table dealing with foreign investment) and section 11-15, section 36-25, section 118-400, subsection 118-410(1) (heading), paragraphs 118-410(1)(b) and (f), subparagraph 118-410(1)(f)(iv), paragraphs 118-410(2)(b) and (d), paragraphs 118-420(4)(c) and (5)(d), paragraphs 118-425(8)(b) and (11)(a), subsection 995-1(1) (after paragraph (a) of the definition of 'investment registration requirement'), subsection 995-1(1) (paragraph (b) of the definition of 'limited partnership'), and subsection 995-1(1) (definition of 'unconditionally registered') of the ITAA 1997 8.55
Item 88, paragraphs 92(2AA)(b) and 92A(1)(b) of the ITAA 1936 8.43
Items 89 to 94, subsection 94D(2), subsection 94D(2) (notes 1 to 3), paragraph 94D(3)(a) and subparagraph 94D(3)(a)(ia) of the ITAA 1936 8.42
Items 100 to 103, subsection 26-68(1) (heading), paragraphs 26-68(1)(a) and (b) and subparagraph 26-68(2)(a)(ii) of the ITAA 1997 8.51
Item 105, paragraph 51-52(1)(a) of the ITAA 1997 8.48
Item 105, paragraphs 51-52(1)(b) and (d) of the ITAA 1997 8.48
Item 105, paragraph 51-52(1)(c) of the ITAA 1997 8.48
Item 105, paragraph 51-52(1)(e) and subsection 51-52(5) of the ITAA 1997 8.48
Item 105, subsection 51-52(3) of the ITAA 1997 8.48
Item 105, subsection 51-52(4) of the ITAA 1997 8.49
Items 105, 110 to 115, subsection 51-52(6), subsections 104-255(1), (4) and (5), paragraphs 104-255(6)(a) and (b), paragraph 116-30(5)(a) and subsection 118-21(1) of the ITAA 1997 8.53
Items 106 to 109, subsection 51-54(1) (heading), paragraphs 51-54(1)(a) and (b) and subparagraph 51-54(2)(a)(ii) of the ITAA 1997 8.50
Item 119, paragraph 118-407(1)(a) of the ITAA 1997 8.44
Item 119, paragraph 118-407(1)(b) of the ITAA 1997 8.44
Item 119, paragraph 118-407(1)(c) of the ITAA 1997 8.44
Item 119, paragraph 118-407(1)(d) of the ITAA 1997 8.44
Item 119, subsection 118-407(2) of the ITAA 1997 8.44
Item 119, subsection 118-407(3) of the ITAA 1997 8.45
Item 119, subsection 118-407(5) of the ITAA 1997 8.46
Items 119, 149 and 150, subsection 118-407(4) and subsection 995-1(1) (definitions of 'early stage venture capital limited' and 'ESVCLP') of the ITAA 1997 8.34
Item 130, paragraph 118-428(1)(a) of the ITAA 1997 8.38
Item 130, subsection 118-428(2) of the ITAA 1997 8.40
Item 130, subsection 118-428(3) of the ITAA 1997 8.41
Items 130 and 154, paragraphs 118-428(1)(b) and (c) and subsection 995-1(1) (definition of 'pre-owned') of the ITAA 1997 8.39
Items 131 to 138, subsections 118-440(1), (3) and (5), paragraphs 118-440(5)(a) and (b), paragraphs 118-440(7)(a) and (c), subsections 118-440(8) and (9) of the ITAA 1997 8.36
Items 139 to 144, section 195-60, section 195-65 (heading), section 195-65, section 195-70 (heading) and section 195-70 of the ITAA 1997 8.52
Item 145, subsection 995-1(1) (definition of 'additional investment' requirement for ESVCLPs) 8.37
Item 147, subsection 995-1(1) (paragraph (a) of the definition of 'carried interest') of the ITAA 1997 8.54
Item 148, definition of 'divesture registration requirement' in subsection 995-1(1) of the ITAA 1997 8.47
Items 157 to 165, subsection 4(1), paragraph 6(3)(a), paragraph 6(3)(ab), paragraph 72(1)(c), paragraph 72(1)(ca), paragraph 73(1)(c), paragraph 73(1)(ca), paragraph 74(2)(c) and paragraph 74(2)(ca) of the Pooled Development Funds Act 1992 (PDF Act) 8.80
Items 166, 167, 168, 172, 173 and 174, section 3-5 (heading), paragraph 3-5(a), Part 2 (heading), subparagraph 9-5(1)(d)(i) and (ii) and paragraph 9-5(1)(e) of the VC Act 8.79
Items 169 and 170, section 7-1 of the VC Act 8.54
Item 171, paragraph 9-3(1)(a) of the VC Act 8.58
Item 171, paragraph 9-3(1)(b) of the VC Act 8.58
Item 171, paragraph 9-3(1)(c) of the VC Act 8.58
Item 171, paragraph 9-3(1)(d) of the VC Act 8.58
Item 171, paragraph 9-3(1)(e), subsections 9-3(4) and (5) of the VC Act 8.59
Item 171, paragraph 9-3(1)(f) of the VC Act 8.59
Item 171, paragraphs 9-3(1)(g) and (h) of the VC Act 8.59
Item 171, paragraph 9-3(1)(i) and subsection 9-3(6) of the VC Act 8.60
Item 171, paragraph 9-3(1)(j) of the VC Act 8.59
Item 171, paragraph 9-3(1)(k) of the VC Act 8.59
Item 171, subsection 9-3(2) of the VC Act 8.59
Item 171, subsection 9-3(3) of the VC Act 8.60
Items 175 and 176, subsection 11-1(1) and paragraph 11-1(2)(ja) of the VC Act 8.61
Item 177, subsection 13-1(1A) of the VC Act 8.62
Item 177, paragraphs 13-1(1A)(g) and (h) of the VC Act 8.63
Item 178, subsections 13-1(3) and (4) of the VC Act 8.64
Item 179, subsection 13-1(5) of the VC Act 8.65
Items 180, 181 and 182, subsections 13-5(1A) and (3) of the VC Act 8.66
Items 181 to 183, subsections 13-10(1) and (2), paragraph 13-10(2)(a) and subsection 13-10(3) of the VC Act 8.67
Items 181 to 183, subsections 13-10(1) and (2), paragraph 13-10(2)(a) and subsection 13-10(3) of the VC Act 8.87
Item 184, section 13-15 of the VC Act 8.69
Item 184, subsection 13-20(1) of the VC Act 8.70
Item 184, subsection 13-20(2) of the VC Act 8.71
Item 184, subsection 13-20(3) of the VC Act 8.72
Items 185 to 187, section 15-1, paragraph 15-1(fa) and section 15-10 of the VC Act 8.73
Item 188, section 15-17 of the VC Act 8.74
Items 189 to 191 and 193 to 199, paragraph 17-1(1)(a), subsections 17-1(1) and (5), paragraph 17-5(1)(ab), subsections 17-5(1) and (6), subsection 17-10(1), subparagraph 17-10(1)(e)(i), section 17-15 and subsections 17-25(1) and 25-5(1) of the VC Act 8.75
Item 192, section 17-3 of the VC Act 8.76
Items 200 and 201, subsections 25-10(1) and 25-15(1) of the VC Act 8.77
Items 202 to 204, paragraphs 29-1(aa), (b) and (c) of the VC Act 8.78
Item 205 8.89
Items 206 to 214, paragraph 118-425(2)(b), subsection 118-425(2), subsection 118-425(3) (note 3), subsection 118-425(14) (heading), subsection 118-425(14), subsection 995-1(1) (definition of 'form approved' by the PDF Board), and subsection 995-1(1) (definition of PDF Board) of the ITAA 1997. Schedule 8, items 218 to 347, subsection 1-15(2), section 3-1 (note), paragraph 3-5(c), section 3-15 (heading), section 3-15, section 3-20, section 7-1, paragraph 9-10(1)(b), subsections 9-10(2) and (3), subsection 11-1(1), paragraph 11-1(2)(l), subsection 11-5(1), section 11-10, subsections 11-15(1) to (4), subsection 113-1(1), paragraph 113-1(1)(d), subsection 13-1(2), paragraph 13-1(2)(d), subsection 13-1(3), subsection 13-1(4), subsection 13-5(1) and (2), section 15-1, paragraph 15-1(h), subsection 15-5(1), section 15-10, section 15-15 and section 15-20, subsections 17-1(1) and (2), paragraphs 17-1(3)(a) to (c), subsection 17-1(5), subsection 17-5(1), paragraph 17-5(2)(a), paragraph 17-5(2)(c), subsection 17-5(3), subsections 17-5(4) and (6), section 17-10 (heading), subsection 17-10(1), subsection 17-10(2), paragraph 17-10(2)(a), section 17-15, section 17-15, section 17-20, subsections 17-25(1) and (2), section 21-1, subsections 21-5(1), (2) and (4), subsections 21-5(4) to (6), subsections 21-10(1) to (4), subsection 21-20(1), section 21-25 (heading), subsections 21-25(1) to (3), paragraph 21-25(3)(a), subsections 21-30(1) and (2), Part 4 (heading), Division 25 (heading), section 25-1, section 25-5 (heading), subsections 25-5(1) to (6), section 25-10 (heading ), subsections 25-10(1) to (6), subsection 25-15 (heading), subsection 25-15(1) to (5), subsection 25-25(5) and (6), section 29-1, subsections 29-5(1) and (2), subsections 29-10(1) and (2), subsections 29-10(4) to (6), paragraph 29-10(6)(b), subsection 29-10(8), paragraph 29-10(8)(a), subsections 29-15(1) and 33-1(1), (2) and (3), section 33-5 (heading), section 33-5, paragraphs 33-5(a), (c) and (d) of the VC Act. 8.82
Items 215, 216 and 217, subsection 4(1) (definition of 'Board'), Part 2 (heading) and section 5 of the PDF Act 8.81
Items 348 and 349, subsection 4(1) at the end of the definition of 'registration applications' and subsection 11(4A) of the PDF Act 8.83
Item 350, section 118-400 (note) of the ITAA 1997; items 352 and 353, section 7-1 (note) and subsection 13-10(2) of the VC Act 8.85
Item 351, subsection 995-1(1) definition of 'unconditionally registered' 8.86


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