Taxation Administration Act 1953
Note: See section 3AA .Chapter 2 - Collection, recovery and administration of income tax
Note: A Commissioner ' s Remedial Power modification is relevant to this part of the tax law.
Taxation Administration (Remedial Power - Seasonal Labour Mobility Program) Determination 2020 (F2020L01474) modifies the operation of s 840-905(b)(ii) of the Income Tax Assessment Act 1997 (ITAA 1997) and s 12-319A(b)(ii) of Sch 1 to the Taxation Administration Act 1953 (TAA 1953) to include foreign resident employees of Approved Employers under the Seasonal Labour Mobility Program ( " employees under the Program " ) who previously held a Temporary Work (International Relations) Visa (subclass 403) and have extended their stay in Australia using a different temporary visa (including a bridging visa) granted under the Migration Act 1958 .
The operation of the relevant provisions is modified as follows:
The modification applies to salary, wages, commissions, bonuses or allowances paid on and after 24 March 2020. The modification ensures that employees under the Program continue to be taxed by application of a final withholding tax rate of 15%. It also ensures that this income is otherwise treated as non-assessable non-exempt income. As is currently the case for those holding a Temporary Work (International Relations) Visa (subclass 403), these employees under the Program will not have to lodge an income tax return unless they earn other Australian sourced income.
An entity must treat a modification as not applying to it or any other entity if the modification would produce a less favourable result for it. The Commissioner is empowered by s 370-5 of Sch 1 to TAA 1953 to make modifications, by legislative instrument, to ensure the law is administered to achieve its intended purpose or object.
This section applies if:
(a) an amount is included in the assessable income for an income year of a *managed investment trust in relation to the income year (worked out for the purposes of determining the trust ' s *net income, or in the case of an *AMIT, the trust ' s total assessable income, for the income year); and
(b) the amount mentioned in paragraph (a) is not an amount mentioned in paragraph 12-405(1)(a) , (b), (c), (d) or (e). 12-448(2)
The amount is MIT agricultural income of the *managed investment trust to the extent that it is attributable to an asset that is *Australian agricultural land for rent (whether or not held by the managed investment trust). 12-448(3)
Australian agricultural land for rent is *Division 6C land situated in Australia that:
(a) is used, or could reasonably be used, for carrying on a *primary production business; and
(b) is held primarily for the purposes of deriving or receiving rent. 12-448(4)
For the purposes of this section, if an *economic infrastructure facility is a fixture on *Australian agricultural land for rent:
(a) treat the economic infrastructure facility as being separate from the Australian agricultural land for rent; and
(b) treat the economic infrastructure facility as not being Australian agricultural land for rent. 12-448(5)
Division 6C land is land (within the meaning of Division 6C of Part III of the Income Tax Assessment Act 1936 ), and includes a thing if an investment in the thing would be an investment in land under subsection 102MB(1) of that Act.