Senate

Taxation Laws Amendment Bill (No. 2) 1995

Explanatory Memorandum

(Circulated by authority of the Treasurer, the Hon Ralph Willis, MP)
THIS MEMORANDUM TAKES ACCOUNT OF AMENDMENTS MADE BY THE HOUSE OF REPRESENTATIVES TO THE BILL AS INTRODUCED

CHAPTER 14 - Minor amendments

Overview

14.1 Schedule 10 of the Bill makes several minor amendments to the taxation laws.

Explanation of the amendments

Infrastructure borrowings

14.2 This amendment corrects an error in section 93K(4)(c) of the Development Allowance Authority Act 1992 by substituting the word another with the word any. [Item 1]

14.3 The amendment is effective from 16 December 1994 (the date the original amendment to the Development Allowance Authority Act 1992 took effect).

Franking of dividends

14.4 This amendment omits the definition of proper franking tax from subsection 160ARXA(1) of the Income Tax Assessment Act 1936 . The provision which previously referred to proper franking tax (ie. the former definition of franking tax shortfall in subsection 160ARXA(1)) has been replaced with a new provision which no longer makes such a reference. The definition therefore serves no purpose and can be omitted. [Item 2]

14.5 The amendment is effective from 13 October 1994 (the date from which the definition was last amended).

Interest on early and over payments

14.6 This amendment substitutes the words Tax Act for the inappropriate reference Income Tax Assessment Act 1936 in paragraph 3(1)(baa) of the Taxation (Interest on Overpayments and Early Payments) Act 1983 . [Item 3]

14.7 The amendment is effective from the date the Bill receives the Royal Assent.

Early payment interest

14.8 The Bill amends the Taxation (Interest on Overpayments and Early Payments) Act 1983 to allow two payments to be eligible for early payment interest:

Subparagraph 8A(1)(a)(v) is amended to include interest under section 170AA as an amount that is eligible for early payment interest. A taxpayer is liable to interest under section 170AA where there has been an amendment of an assessment increasing the income tax payable by the taxpayer [item 4]
Paragraph 8A(1)(b) is amended to include a payment of income tax under an amended assessment in respect of a relevant entity or an instalment taxpayer as an amount that is eligible for early inadvertently overlooked when the interest on early payment provisions were introduced in 1994 [item 5] .

14.9 These amendments apply to payments of interest under section 170AA or income tax under an amended assessment in respect of the 1993-94 year of income where the payment is made on or after 1 July 1994. This allows these payments to be treated in the same manner as other payments to which the interest on early payment provisions apply. [Item 6]

Partner allowance

14.10 In Taxation Laws Amendment Act (No.3) 1994 the date of commencement for the partner allowance was inadvertently set at 29 September 1994 (the commencement date for the home child care allowance) instead of 20 September 1994 (the commencement date for the partner allowance in the Social Security Act 1991 ) . This Bill amends the commencement date for the tax provisions for the partner allowance to 20 September 1994. [Item 7]

Sales tax

14.11 This amendment substitutes the word 'sections' for the incorrect reference to 'section' in paragraph 130(a) of the Taxation Laws Amendment Act (No. 3) 1994 . [Item 8]

14.12 The amendment is effective from 28 November 1994 (the date of Royal Assent of Taxation Laws Amendment Act (No. 3) 1994).


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