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 covers a facility at a time if:
(a) the facility is covered by an approval of the Treasurer under this section that is in force at that time; and
(b) that time is no later than the end of the period of 15 years beginning on the day on which an asset that is part of the facility is first put to use. 12-439(2)
This section covers an improvement to a facility at a time if:
(a) the improvement to the facility is covered by an approval of the Treasurer under this section that is in force at that time; and
(b) that time is no later than the end of the period of 15 years beginning on the day on which an asset that is part of the facility is first put to use after it has been improved under the improvement. 12-439(3)
An *Australian government agency (other than the Commonwealth) may make an application to the Treasurer in respect of a facility, or an improvement to a facility, specified in the application. 12-439(4)
The Treasurer may approve the facility, or the improvement to the facility, specified in the application under subsection (2) if the Treasurer is satisfied that the following criteria are met:
(a) the facility is an *economic infrastructure facility;
(b) in the case of an application in respect of a facility:
(i) the estimated capital expenditure on the facility is $500 million or more; and
(ii) the facility is yet to be constructed; and
(iii) the facility will significantly enhance the long-term productive capacity of the economy; and
(iv) approving the facility is in the national interest;
(c) in the case of an application in respect of an improvement to a facility:
(i) the estimated capital expenditure on the improvement is $500 million or more; and
(ii) the improvement is yet to be constructed; and
(iii) the improvement will significantly enhance the long-term productive capacity of the economy; and
(iv) approving the improvement is in the national interest.
An economic infrastructure facility is a facility that is any of the following:
(a) transport infrastructure;
(b) energy infrastructure;
(c) communications infrastructure;
(d) water infrastructure. 12-439(6)
An approval under subsection (4):
(a) must be in writing; and
(b) must specify the facility, or the improvement, that is approved; and
(c) must specify the date on which the approval comes into force; and
(d) may contain any other information that the Treasurer considers appropriate. 12-439(7)
The Treasurer may publish an approval under subsection (4) in any way that he or she considers appropriate. 12-439(8)
If the Treasurer decides not to approve the facility, or the improvement to a facility, specified in the application under subsection (3), the Treasurer must notify the applicant of the decision, in writing, as soon as practicable after making the decision.
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