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 (the relevant 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 relevant amount would be *MIT agricultural income (disregarding this section) of the managed investment trust because it is attributable to an asset that is *Australian agricultural land for rent; and
(c) the managed investment trust derived, received or made the relevant amount before 1 July 2026; and
(d) if the managed investment trust derived, received or made the relevant amount because the managed investment trust held the asset:
(i) the managed investment trust held the asset just before 27 March 2018; or
(ii) before 27 March 2018, the managed investment trust entered into a contract for the *acquisition or lease of the asset; and
(e) if the managed investment trust derived, received or made the relevant amount because another entity (the second entity ) held the asset:
(i) the second entity held the asset just before 27 March 2018; or
(ii) before 27 March 2018, the second entity entered into a contract for the acquisition or lease of the asset; and
(f) if paragraph (e) applies - immediately before 27 March 2018, the managed investment trust held a *total participation interest (the pre-announcement TPI ) of greater than nil in the second entity. 12-449(2)
If paragraph (1)(d) applies, treat the relevant amount as not being *MIT agricultural income of the *managed investment trust. 12-449(3)
If paragraph (1)(e) applies, treat part of the relevant amount as not being *MIT agricultural income of the *managed investment trust. 12-449(4)
That part is equal to the relevant amount multiplied by the fraction worked out under subsections (5) and (6). 12-449(5)
If the *total participation interest (the post-announcement TPI ) held by the *managed investment trust in the second entity at the end of the most recent income year ending before it derived, received or made the relevant amount exceeds the pre-announcement TPI, work out that fraction by dividing:
(a) the pre-announcement TPI;
(b) the post-announcement TPI. 12-449(6)
Otherwise, the fraction is 1.