House of Representatives

Tax Laws Amendment (2011 Measures No. 2) Bill 2011

Explanatory Memorandum

Circulated By the Authority of the Deputy Prime Minister and Treasurer, the Hon Wayne Swan MP

Chapter 5

Miscellaneous amendments

Outline of chapter

5.1 Schedule 5 makes various miscellaneous amendments to the taxation laws.

Context of amendments

5.2 These amendments seek to ensure the taxation law operates as intended by correcting technical or drafting defects, removing anomalies, and addressing unintended outcomes. The miscellaneous amendments are part of the Government's commitment to the care and maintenance of the taxation laws.

5.3 Miscellaneous amendment packages include addressing issues raised through the Tax Issues Entry System (TIES). The TIES website (www.ties.gov.au), which the Australian Taxation Office (ATO) and Treasury jointly operate, provides a way for tax professionals and the general public to raise issues relating to the care and maintenance of the tax system. The relevant parts of the explanatory memorandum identify TIES issues.

Summary of new law

5.4 The issues these miscellaneous amendments deal with include:

·
correcting grammatical, referencing and asterisking errors;
·
ensuring that provisions are consistent with the original policy intent; and
·
repealing inoperative provisions.

5.5 The table below lists the titles of the various parts of this Schedule.

Part Title
1 A New Tax System (Goods and Services Tax) Act 1999
2 Approved worker entitlement funds
3 Confidentiality of taxpayer information
4 Employee share schemes
5 General interest charge
6 Deductible gift recipients
7 Section 23AB of the Income Tax Assessment Act 1936
8 Definitions and signposts to related material
9 Repeal of redundant reference to Papua New Guinea
10 Repeal of redundant references to franking
11 Correction of cross-reference in provision about dividend streaming etc.
12 Minor changes to provisions about concessional rebates
13 Fixing outdated references to Medicare levy
14 Repeal of references to previously repealed provision
15 Correction of asterisking of reference to tax debts
16 Repeal of outdated provisions about exemption from income tax
17 Correction of asterisking of references to quarter
18 Inclusion of Commissioner's discretion to extend main residence exemption from CGT
19 Nomination of controllers of discretionary trust
20 Definitions mainly relevant to Subdivision 165-F of the Income Tax Assessment Act 1997
21 Removal of definition from imputation provisions
22 Correction of outdated references to virtual PST assets
23 Repeal of spent provisions about land transport facilities borrowings
24 Prevention of double counting for direct value shifts
25 Ineligible income tax remission decisions
26 Correction of references to chains of fixed trusts
27 Gender-specific language
28 Misdescribed amendments
29 References to Schedules
30 References to taxation laws
31 Other amendments

5.6 More significant amendments include:

·
providing the Commissioner of Taxation (Commissioner) with a discretion to extend the main residence exemption from CGT (Part 18, comprising items 93 and 94). (This issue was identified through TIES issue 0056-2009 ); and
·
allowing the nomination of controllers of discretionary trusts for the purposes of the CGT small business concessions (Part 19, comprising items 95 to 109). (This issue was identified through TIES issue 0059-2009 ).

5.7 All of the amendments in this Schedule commence from the date of Royal Assent unless otherwise stated.

Detailed explanation of new law

Part 1 - A New Tax System (Goods and Services Tax) Act 1999

Table 5.1 : Part 1 - A New Tax System (Goods and Services Tax) Act 1999
Provision being amended What the amendment does
A New Tax System (Goods and Services Tax) Act 1999
153-50(1)(d)(i)
[ Item 1 ]
Gives effect to the suggestion made through TIES issue 0014-2010 .
A technical amendment replacing the reference to 'agent's' with a reference to 'intermediary's', which was the intention of the legislation.
A New Tax System (Goods and Services Tax) Act 1999
195-1(definition of 'member'), and paragraph (b) of that definition [Items 2 and 3 ]
Ensures that the definition of 'member' is grammatically correct. The definition uses the word 'means' in the opening line and then has the words 'has the meaning' in paragraphs (a) and (c).

Part 2 - Approved worker entitlement funds

Table 5.2 : Part 2 - Approved worker entitlement funds
Provision being amended What the amendment does
Fringe Benefits Tax Assessment Act 1986   58PB(2) and (3)   58PB(4)   58PC   [ Items 4 to 8 ]

Income Tax Assessment Act 1997   126-130(2)(b)   [ Item 9 ]

Taxation Administration Act 1953   426-5(ba) in Schedule 1   426-55 in Schedule 1 (paragraph (b) of the note)   426-65(ba) and (bb) in Schedule 1   [ Items 10 to 14 ]
Replaces the current approval arrangements with provisions that allow the Commissioner to endorse a fund as an approved worker entitlement fund or an entity endorsed to operate the fund when satisfied that it meets the legislative requirements without the need for the Governor-General to make a regulation. The new arrangements will apply from the day after this Bill receives Royal Assent. Existing funds will be given a six-month period to obtain an Australian Business Number. The Australian Business Registrar will be required to enter a fund or entity as an endorsed fund or entity on the Australian Business Register. The Registrar will have 18 months from the commencement date to make the changes to accommodate these amendments.

Part 3 - Confidentiality of taxpayer information

Table 5.3 : Part 3 - Confidentiality of taxpayer information
Provision being amended What the amendment does
Income Tax Assessment Act 1936   6(1)   [ Items 15 to 17 ] Repeals the definitions of 'Employment Department' and 'Employment Minister' to reflect the fact that these terms are now being defined in the ITAA 1997. The definition of 'Employment Secretary' is also amended so that it links into the appropriate ITAA 1997 definitions.
Income Tax Assessment Act 1997   995-1(1)   [ Items 18 to 20 ] Inserts the definitions of 'Employment Department', 'Employment Minister' and 'Employment Secretary'.
Taxation Administration Act 1953
355-65(2) in Schedule 1 (cell in item 4 in the table, column headed 'The record is made for or the disclosure is to ...')
[ Item 21 ]
Supplements the reference to 'Education Secretary' with a reference to 'Employment Secretary'. This clarifies that disclosure under this provision can be made to the Education/Employment Secretary in each separate capacity.
355-65(2) in Schedule 1 (cell in item 6 in the table, column headed 'The record is made for or the disclosure is to ...')
[ Items 22 and 24 ]
Supplements the reference to the 'Families Secretary' to include a reference to the 'Chief Executive Officer of Centrelink'. This recognises the reality that disclosures made to the Family Assistance Office for the purpose of administering family tax benefit payments are made to Centrelink Officers. An amendment contingent on the Human Services Legislation Amendment Act 2011 is made to replace the reference of 'Chief Executive Officer of Centrelink' with 'Chief Executive Centrelink' (within the meaning of the Human Services (Centrelink) Act 1997 )'.
355-65(5) in Schedule 1 (paragraph (b) of the cell in the table, column headed 'and the record or disclosure ...')
[ Item 23 ]
Replaces the words 'or residential address information' with 'residential address information or spousal information'.

Part 4 - Employee share schemes

5.8 These amendments make some miscellaneous changes to ensure recent reforms to the taxation of employee share schemes, introduced in the Tax Laws Amendment (2009 Budget Measures No. 2) Act 2009 , apply as intended.

5.9 An employee share scheme provides employees with a financial interest in the company they work for through the distribution of shares in that company. Employee share schemes are concessionally taxed to align the interests of employees with their employer.

Table 5.4 : Part 4 - Employee share schemes - Amendments to the Income Tax Assessment Act 1997
Provision being amended What the amendment does
Income Tax Assessment Act 1997   104-75(6)(note)   104-85(6)   130-90(1A)   130-90(2)   [ Items 25 to 29 ] Ensures that any capital gain or loss made by an employee share trust is disregarded if it arises as a result of a beneficiary of the trust becoming absolutely entitled to an employee share scheme share, or as a result of a disposal of an employee share scheme share or right to a beneficiary.

An employee share trust is a trust which obtains employee share scheme interests in a company, and provides them on behalf of employers to employees of that company or their associates, or carries out activities incidental to the holding and providing of employee share scheme interests (for example, bookkeeping, passing on dividends or opening and closing employee accounts). Use of an employee share trust is a common feature of employee share schemes, and provides a convenient mechanism for issuing shares that may later be forfeited.

An employee share trust should not have to include capital gains or losses made when providing shares or rights to shares in the trust to a beneficiary as a part of the operation of an employee share scheme in their assessable income (subject to certain integrity rules).

This is appropriate because any gain is subsequently used to provide remuneration to employees and taxing these would otherwise require the provision of an additional deduction to employers to offset that additional remuneration, which would unnecessarily increase the complexity of the tax system. Further, without this rule, the employee share trust may derive assessable income greater than the deduction provided to the employer (who claims a deduction equal to the amounts contributed value of the interest at the time the employee share trust acquired it).

Capital gains or losses are not disregarded if the employee share trust itself makes a cash profit from the transaction.

Consistent with the current law, the gains or losses will not be disregarded if the employee acquires the share for more than its cost base in the hands of the employee share trust. This is to ensure that there are no untaxed capital gains in the trust which are not embedded (and taxed) in the value of the right to the share to the employee.

The omission of this new provision at the time the employee share scheme reforms were introduced was unintended. The change does not disadvantage any taxpayer.

The amendment applies from 1 July 2009, from when the reforms to employee share schemes applied.

Table 5.5 : Part 4 - Employee share schemes - Amendments to the Income Tax (Transitional Provisions) Act 1997
Provision being amended What the amendment does
Income Tax (Transitional Provisions) Act 1997
83A-5 (2A)
[ Item 30 ]
Ensures that shares or rights acquired while an individual is undertaking employment outside Australia prior to 1 July 2009, which would have been qualifying shares or rights under the previous employee share scheme rules, are transitioned to the new employee share scheme rules, regardless of whether the period of employment that relates to Australia is served after the old rules were repealed.

Under the previous employee share scheme rules, taxpayers who acquire employee shares or rights while employed offshore, and then later become Australian employees while still engaged in employment or service that is relevant to the acquisition of the shares or rights, would have been subject to the employee share scheme provisions at the point of becoming an Australian employee.

Such taxpayers (inbound taxpayers) would have either been assessed in the year of becoming a relevant employee for the first time or at a cessation time for qualifying shares or rights where the relevant election is not made. If assessed in the year of income in which the taxpayer becomes an employee in Australia, the discount will still be valued as at acquisition.

Interests will be transitioned into the new rules if:

·
the interest was acquired before 1 July 2009;
·
at the pre-1 July 2009 time, the old employee share scheme rules did not apply in relation to the interest because it was acquired while engaged in foreign service, and the taxpayer in question was not yet an employee;
·
after 1 July 2009, the old rules would have applied in relation to the interest if they were still in force, because the taxpayer in question became an employee (within the meaning of the old rules); and
·
at the time the taxpayer became an employee, the cessation time under the previous law would not yet have occurred.

Unlike taxpayers who came to Australia pre-1 July 2009, the taxpayers to whom this provision applies will not be able to make an election to be taxed upfront in the year that they arrive in Australia.

This provision clarifies how the transitional rules apply to shares acquired before 1 July 2009. The need for this transitional provision was not identified prior to the passage of the principal reforms.

The amendment applies from 1 July 2009, consistent with the application of the reforms to employee share schemes.

Income Tax (Transitional Provisions) Act 1997
83A-15 (3)
[ Item 31 ]
Ensures that the Commissioner can amend an income tax assessment at any time for the purposes of taxing an employment benefit which becomes an employee share scheme interest.

The employee share scheme reforms introduced a new concept of 'indeterminate rights'.

Indeterminate rights are rights to employment benefits acquired by employees where at the time the right is acquired it may be unclear whether the right will result in receipt of an employee share scheme interest (for example, the employer has a discretion to provide shares or cash) or it may be unclear how many employee share scheme interests will be received. The new law provides that if a right acquired before 1 July 2009 becomes a right to acquire a beneficial interest in a share on or after 1 July 2009, the previous rules are taken to have applied as if the right had always been a right to acquire the beneficial interest in the share.

Based on the treatment of a right as an employee share scheme interest from the time of acquisition, the taxing point for the right under the employee share scheme rules may have occurred in an income year before the nature of the right became clear.

If a taxpayer acquired a right prior to 1 July 2009, which only clearly became a right to acquire a beneficial interest in a share in a company after 1 July 2009, then that taxpayer will be assessable under the previous rules, in an earlier year, where:

·
an election made under the former rules covers the right (the election may have been made in an earlier year in respect of other shares or rights acquired during the year or the Commissioner may allow a later election to be made in relation to the indeterminate right);
·
the indeterminate right did not meet the qualifying conditions under the former rules; or
·
the indeterminate right is a qualifying right and a cessation event (ceasing employment) occurs before 1 July 2009.

When the nature of the right to an employment benefit as an employee share scheme interest becomes clear, the Commissioner may amend an employee's income tax assessment for the income year in which the taxing point for the employee share scheme interest occurred (based on the treatment of the right as an employee share scheme interest from the time of its acquisition). The Commissioner can amend an assessment relating to an employee share scheme at anytime, for the purposes of taxing an employment benefit which becomes an employee share scheme interest.

The omission of this transitional provision at the time the employee share scheme reforms were introduced was an oversight. The explanatory memorandum clearly explained that this outcome was intended.

The amendment applies from 1 July 2009, consistent with the application of the reforms to employee share schemes.

Income Tax (Transitional Provisions) Act 1997
Part 3-3 Division 125
section 125-75
[ Item 32 ]
Ensures that all employee share scheme shares or rights that would have been disregarded from the CGT demerger ownership tests before the commencement of the amending Act ( Tax Laws Amendment (2009 Budget Measures No. 2) Act 2009 ) can continue to be disregarded.

Division 125 of the ITAA 1997 provides 'CGT roll-over' demerger relief rules for certain company demerger events. Generally, for the roll-over to be available, each owner's interest in the new demerged company has to be proportional to their interest in the parent company.

Shares or rights acquired under employee share schemes are often subject to unique contractual arrangements that may make satisfying this proportional ownership rule difficult. For instance, a particular scheme might provide for the issue of shares in the employer in the future (with no provisions to take account of possible demergers).

Moreover, there is no policy incentive to align the interests of parent company employees with the interests of a demerged entity. For these reasons, employee share scheme interests are generally disregarded for these ownership tests.

Before 1 July 2009, the law provided that shares or rights acquired under an employee share scheme were disregarded for the purposes of the CGT demerger relief rules. Specifically, this carve-out applied to 'qualifying shares or rights' acquired under the previous employee share scheme tax provisions. Shares or rights that would meet this test if not for being in a trust were also disregarded.

The amending Act repealed these provisions, and replaced them with updated provisions reflecting new terminology. The amending Act provided that shares or rights acquired under previous taxing regimes, and over which tax was deferred to the 2009-10 income year or later, were transitioned into the new regime. This meant that transitioned shares and rights were intentionally carved out from the demerger ownership tests.

However, shares or rights acquired under previous tax regimes over which tax was payable in a previous income year did not need to be transitioned.

The previous regimes continue to apply to these shares or rights, and the carve-out does not capture them. This amendment ensures that all employee share scheme shares or rights that would have been disregarded from the CGT demerger ownership tests before the commencement of the amending Act continue to be disregarded.

The amendment applies from 1 July 2009, consistent with the application of the reforms to employee share schemes.

Table 5.6 : Part 4 - Employee share schemes - Amendments to the Taxation Administration Act 1953
Provision being amended What the amendment does
Income Tax Assessment Act 1997
130-97
[ Item 33 ]
Renumbers section 130-100 that was inserted by item 40 of Schedule 1 to the Tax Laws Amendment (2009 Budget Measures No. 2) Act 2009 ) as section 130-97.

Part 5 - General interest charge

Table 5.7 : Part 5 - General interest charge
Provision being amended What the amendment does
Taxation Administration Act 1953
8AAB(1)
8AAB(4) and (5)
[ Items 34 and 35 ]
Provides an index of provisions of the laws dealing with references that make a person liable to general interest charge.

Part 6 - Deductible gift recipients

Table 5.8 : Part 6 - Deductible gift recipients
Provision being amended What the amendment does
Income Tax Assessment Act 1997
30-20(2) (cell in item 1.2.4 in the table headed 'Fund, authority or institution')
[ Item 37 ]
Amends the specific listing of the following deductible gift recipients (DGRs) listing to reflect a name change of the listed organisation from the 'College of Radiologists in Australasia' to 'The Royal Australian and New Zealand College of Radiologists'.
Income Tax Assessment Act 1997

30-20(2) (cell in item 1.2.16 in the table headed 'Fund, authority or institution')

30-65 (cell in item 7.2.4 in the table headed 'Fund, authority or institution')

30-20(2) (items 1.2.2, 1.2.3, 1.2.4, 1.2.11 and 1.2.15 in the table)

30-25(2) (items 2.2.15 and 2.2.19 in the table)

30-40(2) (item 3.2.3 in the table)

30- 45(2) (items 4.2.5 and 4.2.15 in the table)

30-50(2) (items 5.5.16, 5.2.24, 5.2.25 and 5.2.27 in the table)

30-65 (items 7.2.1, 7.2.2 and 7.2.4 in the table)

30-80(2) (items 9.2.2, 9.2.15, 9.2.16 and 9.2.20 in the table)

30-90 (item 10.2.6 in the table)

30-105 (items 13.2.4, 13.2.5, 13.2.6, 13.2.11, 13.2.12, 13.2.13 and 13.2.14 in the table)

30-315 (items 5, 19, 20AA, 21, 21A, 24, 25, 25C, 26, 28AAA, 28A, 28AB, 31A, 34, 38, 45AA, 49A, 50A, 60A, 61, 81, 83, 86F, 91, 105B, 112AFA, 112AG, 112BA, 121C, and 127AA in the table)

[ Items 36 to 54 ]

Tax Laws Amendment ( Repeal of Inoperative Provisions ) Act 2006
Item 15 of Schedule 3 (heading)
[ Items 55 and 56 ]

Deems the following specifically listed DGRs, which are eligible for endorsement under the general categories, to have been endorsed by the Commissioner as DGRs under the general categories on the same day as the specific listing is repealed, but does not prevent the Commissioner from revoking that endorsement at a later time:

·
Breast Cancer Network Australia; and
·
Indigenous Community Volunteers Limited.

Repeals and updates the specific listings of the following DGRs where: the organisations no longer exist for the purposes for which they were listed; or the organisations were listed for a limited time and that time has expired, or the organisations have ceased to exist, or have merged with other DGR eligible organisations:

·
Australian College of Occupational Medicine;
·
Australian Council for Children and Youth Organisations Inc;
·
Australian Games Uniform Company Limited;
·
Australian Postgraduate Federation in Medicine;
·
Australian National Travel Association;
·
Australian Red Cross Society-US 2005 Hurricane Relief Appeal;
·
Australian Regional Council of Royal College of Obstetricians and Gynaecologists;
·
Bowral Vietnam Memorial Walk Trust Incorporated;
·
Business Against Domestic Violence Reserve;
·
City of Onkaparinga Memorial Gardens Association Incorporated;
·
Commonwealth (for gifts made for the purposes of research in the Australian Antarctic Territory);
·
Constitutional Centenary Foundation Incorporated;
·
Dunn and Lewis Youth Development Foundation Limited;
·
Foundation for Gambling Studies;
·
Industrial Design Council of Australia;
·
Nonprofit Australia Ltd;
·
Pearl Watson Foundation Limited;
·
Point Nepean Community Trust;
·
Productivity Promotion Council of Australia;
·
St Mary's Cathedral Restoration Appeal Incorporated;
·
St Michael's Church Restoration Fund;
·
St Paul's Cathedral Restoration Fund;
·
The Finding Sydney Foundation;
·
The Salvation Army Hurricane Katrina Relief Appeal;
·
The Vietnam War Memorial of Victoria Incorporated; and
·
World Youth Day 2008 Trust.

All organisations affected have been consulted and none have objected.

The specific listings of 'Commonwealth' enabled gifts for the purposes of research in the Australian Antarctic Territory, but the Commonwealth no longer accesses DGR support under that listing as DGR support was established under other programs.
Amends the specific listing of the following deductible gift recipients (DGRs) listing to reflect a name change of the listed organisation from the 'College of Radiologists in Australasia' to 'The Royal Australian and New Zealand College of Radiologists'.
Deems the following specifically listed DGRs, which are eligible for endorsement under the general categories, to have been endorsed by the Commissioner as DGRs under the general categories on the same day as the specific listing is repealed, but does not prevent the Commissioner from revoking that endorsement at a later time:

·
Breast Cancer Network Australia; and
·
Indigenous Community Volunteers Limited.

Repeals and updates the specific listings of the following DGRs where: the organisations no longer exist for the purposes for which they were listed; or the organisations were listed for a limited time and that time has expired, or the organisations have ceased to exist, or have merged with other DGR eligible organisations:

·
Australian College of Occupational Medicine;
·
Australian Council for Children and Youth Organisations Inc;
·
Australian Games Uniform Company Limited;
·
Australian Postgraduate Federation in Medicine;
·
Australian National Travel Association;
·
Australian Red Cross Society-US 2005 Hurricane Relief Appeal;
·
Australian Regional Council of Royal College of Obstetricians and Gynaecologists;
·
Bowral Vietnam Memorial Walk Trust Incorporated;
·
Business Against Domestic Violence Reserve;
·
City of Onkaparinga Memorial Gardens Association Incorporated;
·
Commonwealth (for gifts made for the purposes of research in the Australian Antarctic Territory);
·
Constitutional Centenary Foundation Incorporated;
·
Dunn and Lewis Youth Development Foundation Limited;
·
Foundation for Gambling Studies;
·
Industrial Design Council of Australia;
·
Nonprofit Australia Ltd;
·
Pearl Watson Foundation Limited;
·
Point Nepean Community Trust;
·
Productivity Promotion Council of Australia;
·
St Mary's Cathedral Restoration Appeal Incorporated;
·
St Michael's Church Restoration Fund;
·
St Paul's Cathedral Restoration Fund;
·
The Finding Sydney Foundation;
·
The Salvation Army Hurricane Katrina Relief Appeal;
·
The Vietnam War Memorial of Victoria Incorporated; and
·
World Youth Day 2008 Trust.

All organisations affected have been consulted and none have objected.
The specific listings of 'Commonwealth' enabled gifts for the purposes of research in the Australian Antarctic Territory, but the Commonwealth no longer accesses DGR support under that listing as DGR support was established under other programs.

Amends the specific listing of the following deductible gift recipients (DGRs) listing to reflect a name change of the listed organisation from the 'College of Radiologists in Australasia' to 'The Royal Australian and New Zealand College of Radiologists'.

Part 7 - Section 23AB of the Income Tax Assessment Act 1936


Provision being amended What the amendment does
Table 5.9 : Part 7 - Section 23AB of the Income Tax Assessment Act 1936 Income Tax Assessment Act 1936
23AB(5)(a)
23AB(7)(a)
23AB(10)(a)
[ Items 57, 59 and 60 ]
23AB(7)
Adds conjunctions that had been omitted at the end of some paragraphs.
[ Item 58 ] Corrects an ambiguity in the wording of the provision, as the previous text did not explicitly state that the rebate was to be calculated as provided in the provision.

Part 8 - Definitions and signposts to related material

Table 5.10 : Part 8 - Definitions and signposts to related material
Provision being amended What the amendment does
Income Tax Assessment Act 1936

6(1) (at the end of the definition of 'dividend')
6(1) (at the end of the definition of 'permanent establishment')
[ Items 61 and 62 ]

Inserts notes to refer to the additional information contained in subsections 6(4) and (6) relating to the definitions of 'dividend' and 'permanent establishment' respectively.
6(1) (definition of 'RSA')

6(1) (definition of 'RSA provider')
[ Items 63 and 64 ]

Replaces the definitions of 'RSA' and 'RSA provider' in the ITAA 1936 with a reference to the meanings given by subsection 995-1(1) of the ITAA 1997.

Part 9 - Repeal of redundant reference to Papua New Guinea

Table 5.11 : Part 9 - Repeal of redundant reference to Papua New Guinea
Provision being amended What the amendment does
Income Tax Assessment Act 1936
6AA(1)(d)
6AA(1)(e)
6AA(1)(f)
[ Items 65 to 67 ]
Repeals the reference to Papua New Guinea as it is no longer required.

Part 10 - Repeal of redundant references to franking

Table 5.12 : Part 10 - Repeal of redundant references to franking
Provision being amended What the amendment does
Income Tax Assessment Act 1936
45C(3)(a)
[ Items 68 and 69 ]
Modifies paragraph 45C(3)(a) to replace a redundant reference to 'a class C franking debit' with a reference to 'a franking debit'. This amendment will apply from 1 July 2002, which is the time when class C franking debits ceased to exist.
45C(5) and (6)
[ Item 70 ]
Repeals subsections 45C(5) and 45C(6). Subsection 45C(5) is a transitional rule that is no longer required. Subsection 45C(6) refers to definitions in Part IIIAA of the ITAA 1936. Part IIIAA was previously removed as an inoperative provision.

Under the simplified imputation system, introduced from 1 July 2002, the way that companies keep franking accounts changed from a taxed income basis to a tax paid basis. This removed the requirement for companies to maintain different classes of franking accounts. The amendments to update the terminology in section 45C will have no adverse impact on taxpayers as it confirms existing practice and removes uncertainty.

Part 11 - Correction of cross-reference in provision about dividend streaming etc.

Table 5.13 : Part 11 - Correction of cross-reference in provision about dividend streaming etc
Provision being amended What the amendment does
Income Tax Assessment Act 1936

45D(2)
[ Items 71 and 72 ]

Replaces an incorrect reference in subsection 45D(2) to a determination made under paragraph 45D(1)(b) with a reference to a determination made under section 45A.

Paragraph 45D(1)(b) was removed when the demerger provisions were introduced in 2002. However, a consequential amendment to update subsection 45D(2) was overlooked. This amendment will not have an adverse impact on taxpayers, as it confirms existing practice and removes uncertainty. Therefore this amendment applies to determinations made by the Commissioner on or after 24 October 2002.

Part 12 - Minor changes to provisions about concessional rebates

Table 5.14 : Part 12 - Minor changes to provisions about concessional rebates
Provision being amended What the amendment does
Income Tax Assessment Act 1936

159J(1B)
[ Item 73 ]

Fixes duplication of the word 'the'.

Part 13 - Fixing outdated references to Medicare levy

Table 5.15 : Part 13 - Fixing outdated references to Medicare levy
Provision being amended What the amendment does
Income Tax Assessment Act 1997

3(1)
3-5(1)(note 1)
[ Items 74 and 75 ]

Repeals the redundant provision and updates the note to subsection 3-5(1) to include the correct references to the Medicare levy.

Part 14 - Repeal of references to previously repealed provisions

Table 5.16 : Part 14 - Repeal of references to previously repealed provisions
Provision being amended What the amendment does
Income Tax Assessment Act 1997

11-15 (item in the table headed 'United Nations')
[ Item 76 ]

830-75
[ Item 77 ]

Removes the item referring to section 23ADA, which was repealed by the Tax Laws Amendment (Repeal of Inoperative Provisions) Act 2006 .

Clarifies that the reference should be 'subject to foreign tax'.

Part 15 - Correction of asterisking of reference to tax debts

Table 5.17 : Part 15 - Correction of asterisking of reference to tax debts - Amendments to the Income Tax Assessment Act 1997
Provision being amended What the amendment does
Income Tax Assessment Act 1997

25-5(7)
[ Item 78 ]

Corrects the asterisking of the reference to 'tax debts'.

Part 16 - Repeal of outdated provisions about exemptions from income tax

Table 5.18 : Part 16 - Repeal of outdated provisions about exemptions from income tax
Provision being amended What the amendment does
Income Tax Assessment Act 1936

128B(3)(ab)
[ Item 79 ]

Income Tax Assessment Act 1997
11-5 (item in the table headed 'film')
11-5 (item in the table headed 'mining')
50-35 (item 7.1 in the table)
50-45 (heading)
50-45 (items 9.3 and 9.4 in the table)
[ Items 80 to 84 ]

Repeals outdated provisions that covered exemptions from income tax. The Phosphate Mining Company of Christmas Island Limited no longer exists; the Australian Film Finance Corporation Pty Limited was deregistered and subsumed into Screen Australia; and the Commonwealth Games Federation entitlement to tax exemptions expired on 1 July 2007. Therefore the provisions relating to these are inoperative and are being repealed.

Part 17 - Correction of asterisking of references to quarter

Table 5.19 : Part 17 - Correction of asterisking of references to quarter
Provision being amended What the amendment does
Income Tax Assessment Act 1997
114-15(2)
114-15(3) steps 1 and 3 in the method statement)
114-15(5) and (6)
114-20
[ Items 85 to 88 ]
Corrects the asterisking of the references to 'quarter'.

Part 18 - Inclusion of Commissioner's discretion to extend main residence exemption from CGT

Table 5.20 : Part 18 - Inclusion of Commissioner's discretion to extend main residence exemption from CGT
Provision being amended What the amendment does
Income Tax Assessment Act 1997
118-150(4)(a)
[ Items 89 and 90 ]
Gives effect to the suggestion made through TIES issue 0056-2009 .

Section 118-150 of the ITAA 1997 extends the CGT main residence exemption to allow a taxpayer to treat land as their main residence for up to four years if they build, repair or renovate a dwelling on the land that subsequently becomes their main residence.
This amendment gives the Commissioner discretion to extend this period where the taxpayer does not build, repair or renovate a dwelling and establish it as their main residence within four years.
The Commissioner would be expected to exercise the discretion in situations such as the following:

·
When the taxpayer is unable to build, repair or renovate the dwelling within this time period due to circumstances outside their control. For example, the relevant builder becomes bankrupt and is unable to complete the building, repairs or renovations.
·
When the taxpayer is unable to build, repair or renovate the dwelling due to unforeseen circumstances arising during this period. For example, the taxpayer or a family member has a severe illness or injury.
·
When building, repairing or renovating the dwelling within the four years would impose a severe financial burden on the taxpayer. For example, the taxpayer would be required to incur an excessively high level of debt relative to their income. Consequently, the taxpayer may spend time accumulating sufficient savings (relative to their income) to build, repair or renovate a reasonable dwelling relative to their circumstances.

These examples are not exhaustive.
atonl; This amendment will apply in relation to CGT events happening on or after Royal Assent.

Part 19 - Nomination of controllers of discretionary trust

5.10 These amendments give effect to the suggestion made through TIES issue 0059-2009 .

5.11 All references to legislative provisions in this Part are references to the Income Tax Assessment Act 1997 unless otherwise stated.

5.12 Section 152-42 currently allows a trustee of a discretionary trust to nominate up to four beneficiaries of the trust as controllers of the trust for an income year in which the trustee did not make a distribution of income or capital and the trust had a tax loss or no taxable income for that year.

5.13 The result of nominating a beneficiary to be a controller of a discretionary trust is that the beneficiary and discretionary trust are connected entities for the income year but only for the purpose of applying the definition of 'active asset' in subparagraph 152-40(1)(a)(iii) or paragraph 152-40(1)(b).

5.14 This allows a capital gain made on a passively held CGT asset (that is, an asset that is owned by one entity and used in the business of an affiliate of, or an entity connected with, the asset-owning entity) to qualify for the small business CGT concessions via the maximum net asset value test where the asset is:

·
owned by a nominated beneficiary (or beneficiaries) or by an entity connected with a nominated beneficiary; and
·
used or held ready for use in the discretionary trust's business.

5.15 However, where a beneficiary is a controller of a discretionary trust only because of the nomination in section 152-42, this does not make the beneficiary a controller of the trust for calculating the maximum net asset value of the entity that owns the asset.

5.16 Currently, section 152-42 does not apply to paragraph 152-10(1A)(a), which is part of the provisions that extend access to the small business CGT concessions via the small business entity test to passively-held assets.

5.17 This means that an entity that does not carry on a business (other than as a partner in partnership) and that is not connected with a discretionary trust cannot access the small business CGT concessions via the small business entity test for a capital gain made on a CGT asset it owned that was used in the business of the discretionary trust.

5.18 The amendments, which repeal section 152-42 with effect from Royal Assent, introduce a new provision to allow a trustee of a discretionary trust to nominate up to four beneficiaries of the trust as controllers of the trust for an income year in which the trustee did not make a distribution of income or capital and the trust had a tax loss or no net income for that year. The nomination must be in writing and signed by the trustee and by each nominated beneficiary. The proposed provision relates to 'net income' rather than 'taxable income', which is used in section 152-42. 'Taxable income' is technically incorrect because, under subsection 95(1) of the ITAA 1936, a trust has net income rather than taxable income. [ Schedule 5, items 99, 102 and subitem 105(2 ), sections 152 - 42 and 152 - 78 of the ITAA 1997 ]

5.19 The amendments also extend the scope of the nomination so that it applies for the purposes of Subdivision 152-A and for sections 328-110, 328-115 and 328-125 as they relate to that Subdivision. [ Schedule 5, item 102, subsection 152 - 78(1 ) of the ITAA 1997 ]

5.20 Where the trustee has made a nomination under the new provision, its extended scope allows an entity that does not carry on a business (other than as a partner in partnership) whose asset is used in the trust's business to access the small business CGT concessions via the small business entity test through the operation of subsection 152-10(1A).

5.21 The extended scope of a nomination also means that it applies for determining whether one entity is connected with another entity for calculating the maximum net asset value of the entity that owned the asset or the aggregated turnover of the discretionary trust that used the asset in its business.

5.22 Various notes in the legislation have been changed and new notes inserted to indicate the location and effect of the amendments. [ Schedule 5, items 91 to 98, 100, 103 and 104, paragraph 152 - 1 -( 1 )( c )( note ), subsection 152 - 10(1A )( note 1 ), subsection 152 - 10(1A )( note 2 ), section 152 - 15(note ), section 152 - 15, subsections 152 - 20(2 ) to ( 4 ), subsection 152 - 40(1 )( note 2 ), subsections 152 - 40(4 ) and ( 4A ), 152 - 47(1 ) and 152 - 48(2 ), subsection 328 - 115(1 )( note ), subsection 995 - 1(1 )( note at the end of the definition of ' connected with' ) of the ITAA 1997 ]

5.23 For access to the small business CGT concessions generally, the amendments apply in relation to CGT events that happen on or after the day this Bill receives Royal Assent. [ Schedule 5, paragraph ( a ) of subitem 105(1 )]

5.24 For access to the small business CGT concessions via the small business entity test only, the amendments also apply in relation to CGT events that happen before the day this Bill receives Royal Assent but after the start of the 2007-08 income year. [ Schedule 5, item 109, paragraph ( b ) of subitem 105(1 )]

5.25 The combination of the two application rules results in:

·
the amendments applying, for access to the concessions via the small business entity test, in relation to CGT events that happen in the 2007-08 income year and later income years (which aligns with the date of effect of the amendments that extended access to the concessions via the small business entity test to passively held assets); and
·
taxpayers who accessed the concessions where a trustee made a nomination under section 152-42 prior to Royal Assent not being disadvantaged by the increased scope of the new nomination, which includes determining whether one entity is connected with another entity for calculating the maximum net asset value of the entity that owned the relevant asset.

5.26 The retrospective component of the amendments will be beneficial to discretionary trust beneficiaries who, following the trustee of the trust making a nomination, will have the opportunity to access the small business CGT concessions via the small business entity test.

5.27 The small business CGT concessions require taxpayers to make choices. For example, the small business retirement exemption and small business roll-over are available only if the taxpayer chooses to obtain them.

5.28 Subsection 103-25(1) limits the date for making a choice to the day an entity lodges its income tax return for the income year in which the relevant CGT event happened or a later date allowed by the Commissioner.

5.29 Taxpayers who become eligible to make a choice under Division 152 due to these amendments will have an extended period, under a transitional rule, to make such a choice in relation to CGT events happening before the day on which this Bill receives Royal Assent.

[ Schedule 5, subitem 105(3 )]

5.30 The time limit for an entity to make the choice it is eligible to make as a result of these amendments is the latest of:

·
the day the entity lodges its income tax return for the income year in which the relevant CGT event happened;
·
12 months after the day this Bill receives Royal Assent; and
·
a later day allowed by the Commissioner.

[ Schedule 5, subitem 105(4 )]

Part 20 - Definitions mainly relevant to Subdivision 165-F of the Income Tax Assessment Act 1997

Table 5.21 : Part 20 - Definitions mainly relevant to Subdivision 165-F of the Income Tax Assessment Act 1997
Provision being amended What the amendment does
Income Tax AssessmentAct 1997

115-50(2)(a), 3(a) and 4(a)

121-30(2)

124-810(3)(a)

165-45(4)(note 2)

165-215(2)(a)(i)

165-215(2)(a)(ii)

165-215(2)(b)(i)

165-215(3)

165-215(4)(a)

165-215(5)

165-220(2)(a)(i)

165-220(2)(a)(ii)

165-220(2)(b)(i)

165-220(2)(b)(ii)

165-220(3)

165-220(4)(a)

165-220(5)

165-225

165-230(2)(a)(i)

165-230(2)(a)(ii)

165-230(2)(b)(i)

165-230(2)(b)(ii)

165-230(3)

165-230(4)(a)

165-230(5)

165-235(3)

165-235(4)(a)

165-240(1)

165-245

207-130(6)(f)

[ Items 106 to 138 ]
707-130(1)(note 1)
[ Items 139 and 140 ]
995-1(1) (definition of 'control of a non-fixed trust')

995-1(1) (definition of 'excepted trust')

995-1(1) (definition of 'more than a 50% stake')

995-1(1) (definition of 'fixed entitlement')

[ Items 141 to 145 ]
Inserts definitions of 'control a non-fixed trust', 'excepted trust', fixed entitlement' and 'more than a 50% stake'
Corrects the asterisking of the references to 'fixed entitlement', 'fixed trust', 'non-fixed trusts', 'fixed entitlements', 'family trusts', 'excepted trust', and 'more than a 50% stake'.
Repeals section 165-245 because the terms that were contained in that section are now defined in either the ITAA 1997 or the ITAA 1936 with cross references as required. Section 165-245 is replaced and a new rule to better explain the meaning of 'holding fixed entitlements directly or indirectly when an entity has fixed entitlement to income or capital of a company'.




































Removes outdated cross-references to definitions.
Taxation Administration Act 1953

45-287(1)(a) in Schedule 1

45-287(4)(a) in Schedule 1

[ Items 146 and 147 ]
Corrects the asterisking of references to 'fixed entitlement'.

Part 21 - Removal of definition from imputation provisions

Table 5.22 : Removal of definition from imputation provisions
Provision being amended What the amendment does
Income Tax Assessment Act 1997 204-70
204-75(1) and (2)
204-80(1)
[ Items 148 to 150 ]
Removes the definition of the term 'differs significantly' from the imputation provisions.

Part 22 - Correction of outdated references to virtual PST assets

Table 5.23 : Part 22 - Correction of outdated references to virtual PST assets
Provision being amended What the amendment does
Income Tax Assessment Act 1997 320-141(2)(a)(i)
320-141(2)(a)(ii)
[ Items 151 to 153 ]
Gives effect to a suggestion made through TIES issue 0057-2009 .

Replaces outdated references in subsection 320-141(2) to 'virtual PST assets' with references to 'complying superannuation/FHSA assets'. This amendment applies on and after 26 June 2008.
The concept of a 'virtual PST asset' was replaced with the concept of a 'complying superannuation/FHSA asset' when the first home savers account amendments were introduced in 2008. The amendments to update the terminology in subsection 320-141(2), which were sought by taxpayers through the TIES system, will have no adverse impact on taxpayers as they confirm existing practice and remove uncertainty.

Part 23 - Repeal of spent provision about land transport facilities borrowings

Table 5.24 : Part 23 - Repeal of spent provision about land transport facilities borrowing
Provision being amended What the amendment does
Income Tax Assessment Act 1997

13-1(item in the table headed 'land transport facilities borrowings')

250-60(3)

250-60(3)(d)

250-60(3)(e)

Division 396

995-1(1) (definition of 'land transport facilities borrowings agreement')

995-1(1) (definition of 'land transport facility')

995-1(1) (definition of 'LTF interest')

995-1(1) (definition of 'related facility')

[ Items 154 to 162 ]
Repeals the provisions that provided the basis for the land transport facilities borrowings scheme. That scheme provided tax offsets to resident financiers on interest received from eligible land transport infrastructure borrowings provided that the borrower agreed to forego the tax deductibility of that interest. The scheme is no longer operative. Since 2004 no new projects have been approved under the scheme and no projects currently receive assistance under it.

Part 24 - Prevention of double counting for direct value shifts

Table 5.25 : Part 24 - Prevention of double counting for direct value shifts
Provision being amended What the amendment does
Income Tax Assessment Act 1997

725-250

725-255(2)

725-335(3)

725-340(2)

[ Items 163 to 167 ]
In certain circumstances, the direct value shifting rules could apply where an amount is already included in the adjustable value (such as the cost base or reduced cost base) of an up interest.

This could happen where, for example, a shareholder makes a payment to another shareholder for an impairment of their share rights. This expenditure could qualify for inclusion in the fourth element of the cost base (and reduced cost base) of the paying shareholder's shares.
Providing that all of the conditions under the direct value shifting rules are satisfied, the payer shareholder would also be able to make an adjustment to increase the cost base of their shares reflecting in whole or part the increase in the market value of their interest. This can duplicate the effect of the inclusion of an amount in the fourth element of the cost base.
This amendment will ensure that where an amount is included in the adjustable value of an up interest, the value will not adjust the cost base of the up interest under the direct value shifting rules.
This amendment applies in relation to schemes entered into on or after Royal Assent.

Part 25 - Ineligible income tax remission decisions

Table 5.26 : Part 25 - Ineligible income tax remission decisions
Provision being amended What the amendment does
Taxation Administration Act 1953
2(1)
14ZQ (definition of 'ineligible income tax remission decision')
14ZS(1)
14ZS(2)
14ZS(5)
[ Items 168 to 172 ]

388-65(3A) in Schedule 1
[ Items 431 and 432 ]
Moves the definition of 'ineligible income tax remission decision' from section 14ZQ to subsection 2(1).

Corrects an incorrect cross-reference, and applies to determinations made on or after 1 April 2004.

Part 26 - Correction of references to chains of fixed trusts

Table 5.27 : Part 26 - Correction of references to chains of fixed trusts
Provision being amended What the amendment does
Income Tax Assessment Act 1997

855-40(2)(b)(i) and (ii)
855-40(6)(b)
[ Items 173 to 175 ]

Corrects the asterisking of the references to 'fixed trust' and 'chains of fixed trusts'.

Part 27 - Gender-specific language

Table 5.28 : Part 27 - Gender-specific language
Provision being amended What the amendments do
Income Tax Assessment Act 1936

6(1) (definition of 'income from personal exertion')

6(1) (paragraph (a) of the definition of 'income from personal exertion')

6(1) (paragraph (e) of the definition of' permanent establishment')

6(1) (subparagraphs (a)(i) and (ii) of the definition of 'resident')

6A

14(2)

23AA(2)

23AA(3)(a), (b) and (c) and (6)(a)

23AB(2)

23AB(7)

23AB(7)(b)

23AB(11)

23AC(3)(a)(i)

23AC(3)(a)(i), (ii), (iii) and (iv)

23AC(3)(b)(i)

23AC(3)(b)(ii)

23AF(11)

23AF(12)

23AF(18) (paragraph (a) of the definition of 'eligible foreign remuneration')

24B(1) (paragraph (b) of the definition of 'prescribed person')

24C(a)

24D(4)

24E(1)(b)

24E(4)(b)

24E(4)(c)

24G(1)(e)

25A(1)

25A(10)(a)

25A(11)(b)(i)

26AB(4)

26AG(3)(d) and (e)

26AG(4)

26AG(10)(f) and (g)

26AH(2)(b)

26AH(4)

26C(2)(b)(i)

27(1)

51AD(9)

51AD(20)(f)

52(1)

52A(3)(j)

73A(2)

73A(2)(b)

79A(1)

79A(2)(f)

79A(2A)

79A(3B)(c)

79A(3E)

79B(1)

79B(2)(b)

79B(5) and (5A)

82

82KL(8)

82L(1) (paragraph (b) of the definition of 'convertible note')

82M(1)(b)

82P(2)(b) and (3)(b)

82R(2)

82SA(1)(d)(i)

82SA(1)(d)(vii)

82SA(1)(d)(viii)

94(2)(a)

94(9), (10), (10A) and (10B)

94(10C)(a)(i)(A)

95B

99A(3)(c)

99C(2)(e)

101

101A(1)

101A(2)

102(1)(a)

102(2)

102(2)(a) and (b)

102(3)

102A(4)(a)(i) and (b)(i)

102G(11)(a)

102G(11)(b) and (c)

103(2)

103A(5)(d)

103A(7)(a), (b) and (c)

120(2)

126(3)

128A(3)

128B(10) and (11)

129

130

131

134

135

136AF(1) and (3)

136AF(5)

142

143

147

148(2)

148(2)(b)

148(3)

148(3)

148(4)

148(5) and (8)

148(9)

148(9)(a)

148(9)(b)

152

155(1)

155(2)

156(1) (definition of 'relevant primary production deductions')

156(5)

157(3)

157(4)

159H(a)

159J(1), (1A) and (1B)

159L(1) and (3)

159L(4)(a)

159M

159P(4) (paragraph (h) of the definition of '
medical expenses')

160AAB(2), (3) and (6)

163

164

166

167

171(1)

177E(1)(c)

177F(1) and (3)

177F(6)

251R(4)

251S(2)

252(1)(c)

252(1)(g)

252(1)(i)

252A(3)

252A(6)

252A(12)

254(1)(a)

254(1)(b)

254(1)(c)

254(1)(d)

254(1)(e)

254(1)(f)

254(1)(g)

254(1)(h)

255(1)(a) and (b)

255(1)(c)

255(1)(d)

255(2)

257

262

263(1)

264(1)(a)

264(1)(b)

264(2)

[ Items 176 to 367 ]
Ensures gender neutral references in the tax law provisions.

Part 28 - Misdescribed amendments

Table 5.29: Part 28 - Misdescribed amendments - Amendments to the Tax Laws Amendment (2010 Measures No.1) Act 2010
Provision being amended What the amendment does
Tax Laws Amendment (2010 Measures No.1) Act 2010

Item 105 of Schedule 5
Item 173 of Schedule 5
Item 201 of Schedule 5
Item 11 of Schedule 6 (heading)
[ Items 368 to 371 ]

Corrects grammatical and other errors, such as asterisking.

Table 5.30 : Part 28 - Misdescribed amendments - Amendments to the Tax Laws Amendment (Transfer of Provisions) Act 2010
Provision being amended What the amendment does
Tax Laws Amendment (Transfer of Provisions)Act 2010

Item 16 of Schedule 2
[ Item 372 ]

Repeals an item that amends provisions that have been repealed.

Part 29 - References to Schedules

Table 5.31 : Part 29 - References to Schedules - Amendments to the Family Trust Distribution Tax (Primary Liability) Act 1998 and to the Family Trust Distribution Tax (Secondary Liability) Act 1998
Provision being amended What the amendment does
Family Trust Distribution Tax (Primary Liability) Act 1998

3
[ Item 373 ]

Family Trust Distribution Tax (Secondary Liability)Act 1998
3
[ Item 374 ]

Corrects the wording of how to refer to a Schedule.

Table 5.32 : Part 29 - References to Schedules - Amendments to the Fringe Benefits Tax Assessment Act 1986
Provision being amended What the amendment does
Fringe Benefits Tax Assessment Act 1986

136(1) (paragraph (q) of the definition of 'fringe benefit')
[ Item 375 ]

Corrects the wording of how to refer to a Schedule.

Table 5.33 : Part 29 - References to Schedules - Amendments to the Income Tax Assessment Act 1936
Provision being amended What the amendment does
Income Tax Assessment Act 1936
95(1) (note at the end of the definition of 'net income')
102D(1) (note at the end of the definition of 'net income')
102M (note at the end of the definition of 'net income')
102UC(4) (definition of 'discretionary trust')
102UC(4) (paragraphs (a), (d) and (e) of the definition of 'excluded trust')
102UC(4) (definition of 'fixed entitlement')
102UC(4) (definition of 'indirectly')
[ Items 376 to 382 ]
Corrects the wording of how to refer to a Schedule.

Table 5.34 : Part 29 - References to Schedules - Amendments to the Income Tax Assessment Act 1997
Provision being amended What the amendment does
Income Tax Assessment Act 1997
25-35(5) (cell in item 5 in the table, column headed 'See:')

36-25

109-60 (cell in item 9 in the table, column headed 'See:')

109-60 (cell in item 10 in the table, column headed 'See:')

112-97 (cell in item 5A in the table, column headed 'See:')

112-97 (cell in item 20 in the table, column headed 'See:')

128-15(1) (note 2)

165-215(5)

165-220(5)

165-230(5)

180-10(1)

180-20(1)

230-460(7)

328-10(1) (cell in item 12 in the table, column headed 'Provision')

328-110(4) (paragraph (a) of the note)

995-1(1) (definition of 'family trust')

995-1(1) (paragraph (a) of the definition of 'income for surcharge purposes')

995-1(1) (note 1 to paragraph (a) of the definition of 'tax loss')

[ Items 383 to 396 ]
Corrects the wording of how to refer to a Schedule.

Updates a reference to the old Schedule 2J in the ITAA 1936, which has since been rewritten into Subdivision 321-C in the ITAA 1997.

Table 5.35 : Part 29 - References to Schedules - Amendments to the Income Tax (Transitional Provisions) Act 1997
Provision being amended   What the amendment does
Income Tax(Transitional Provisions) Act 1997
40-285(2)(a)(ii)
[ Item 397 ]
Corrects the wording of how to refer to a Schedule.

Table 5.36 : Part 29 - References to Schedules - Amendments to the Medicare Levy Act 1986
Provision being amended   What the amendment does
Medicare Levy Act 1986
3(2A)
[ Item 398 ]
Corrects the wording of how to refer to a Schedule.

Table 5.37 : Part 29 - References to Schedules - Amendments to the Superannuation Contributions Tax (Assessment and Collection) Act 1997
Provision being amended   What the amendment does
Superannuation Contributions Tax (Assessment and Collection) Act 1997
7A(3)(b) and (c)
7B(3)(b) and (c)
[ Item 399 ]
Corrects the wording of how to refer to a Schedule.

Part 30 - References to taxation laws

Table 5.38 : Part 30 - References to taxation laws - Amendments to the Income Tax Assessment Act 1997
Provision being amended   What the amendment does
Income Tax Assessment Act 1997
995-1(1)
[ Item 400 ]
Inserts a definition of 'Excise Act'.

Table 5.39 : Part 30 - References to taxation laws - Amendments to the Taxation Administration Act 1953
Provision being amended   What the amendment does
Taxation Administration Act 1953

2(1) (at the end of the definition of 'taxation law')

2(2)

284-75(1)(a) in Schedule 1

284-75(1) in Schedule 1 (note 1)

284-75(1) in Schedule 1 (note 2)

284-75(4)(a)(ii) in Schedule 1

284-75(4)(b) in Schedule 1

284-75(6)(d)(i) in Schedule 1

284-75(6)(d)(ii) in Schedule 1

284-80(1) in Schedule 1 (table item 2)

284-90(1) in Schedule 1 (items 1, 2 and 3 in the table, column headed 'In this situation:')

[ Items 401 to 411 ]
Clarifies the limiting of the definition of 'taxation law' so as to exclude 'Excise Acts'.

Part 31 - Other amendments

Table 5.40 : Part 31 - Other amendments - Amendments to the Income Tax Assessment Act 1936
Provision being amended   What the amendment does
Income Tax Assessment Act 1936
170(10AA) (items 24, 25, 30 and 35 in the table)
202DR(2)
[ Items 412 and 413 ]
Corrects the numbering and ordering of items in the table.

Corrects a grammatical error.

Table 5.41 : Part 31 - Other amendments - Amendments to the Income Tax Assessment Act 1997
Provision being amended   What the amendment does
Income Tax Assessment Act 1997

112-20(3) (note 1)
Subdivision H of Division 240 (heading)
376-170(4)(a)(i)
705-25(5)(c)(ii)
974-150(2)
[ Items 414 to 418 ]

Corrects typographical errors.

Repeals a provision that related to a corporation that no longer exists.
Corrects an incorrect cross-reference.

Table 5.42 : Part 31 - Other amendments - Amendments to the Income Tax (Transitional Provisions) Act 1997
Provision being amended   What the amendment does
Income Tax (Transitional Provisions) Act 1997

126-155
[ Item 419 ]

Repeals a spent provision.

Table 5.43 : Part 31 - Other amendments - Amendments to the Superannuation Legislation Amendment Act 2010
Provision being amended   What the amendment does
Superannuation Legislation Amendment Act 2010

21(1) in Schedule 1
[ Item 420 ]

Corrects an incorrect cross-reference.

Table 5.44 : Part 31 - Other amendments - Amendments to the Taxation (Interest on Overpayments and Early Payments) Act 1983
Provision being amended   What the amendment does
Taxation (Interest on Overpayments and Early Payments) Act 1983

3C (definition of 'relevant tax') (item 50 in the table)
[ Item 423 ]

Corrects an incorrect cross-reference.

Table 5.45 : Part 31 - Other amendments - Amendments to the Taxation Administration Act 1953
Provision being amended   What the amendment does
Taxation Administration Act 1953

2(1)
14ZQ (definition of 'ineligible income tax remission decision')
14ZS(1)
14ZS(2)
14ZS(5)
388-65(3A) in Schedule 1
[ Items 421 and 422 ]

Corrects an incorrect cross-reference, and applies to determinations made on or after 1 April 2004.

Table 5.46 : Part 31 - Other amendments - Amendments to the Tax Laws Amendment (2007 Measures No. 5) Act 2007
Provision being amended   What the amendment does
Tax Laws Amendment (2007 Measures No. 5) Act 2007

Part 2 of Schedule 12 (heading relating to the Industrial Research and Development Incentives Act 1976 )
[ Item 424 ]

Repeals a heading which refers to an Act that is not being amended.


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