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This is a Bill, not an Act. For current law, see the Acts databases.
TAX LAWS AMENDMENT (2012 MEASURES NO. 6) BILL 2012
2010-2011-2012
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Tax Laws Amendment (2012 Measures
No. 6) Bill 2012
No. , 2012
(Treasury)
A Bill for an Act to amend the law relating to
taxation and superannuation, and for related
purposes
i Tax Laws Amendment (2012 Measures No. 6) Bill 2012 No. , 2012
Contents
1 Short
title
...........................................................................................
1
2 Commencement
.................................................................................
1
3 Schedule(s)
........................................................................................
2
4
Amendment of assessments ............................................................... 2
Schedule 1--Tax treatment of native title benefits
4
Part 1--Main amendments
4
Income Tax Assessment Act 1936
4
Income Tax Assessment Act 1997
4
Part 2--Other amendments
8
Income Tax Assessment Act 1936
8
Income Tax Assessment Act 1997
9
Schedule 2--Deductible gift recipients
10
Income Tax Assessment Act 1997
10
Schedule 3--Geothermal energy
12
Income Tax Assessment Act 1997
12
Schedule 4--Extension of interim streaming provisions for
managed investment trusts
19
Tax Laws Amendment (2011 Measures No. 5) Act 2011
19
Schedule 5--Rebate for medical expenses
20
Income Tax Assessment Act 1936
20
Schedule 6--Limited recourse debt
26
Income Tax Assessment Act 1997
26
Schedule 7--In-house fringe benefits under salary packaging
arrangements
28
Fringe Benefits Tax Assessment Act 1986
28
Schedule 8--Miscellaneous amendments
31
Part 1--Amendments of superannuation regulations
31
Retirement Savings Accounts Regulations 1997
31
Superannuation Industry (Supervision) Regulations 1994
31
Tax Laws Amendment (2012 Measures No. 6) Bill 2012 No. , 2012 ii
Part 2--Other amendments of taxation laws
33
A New Tax System (Goods and Services Tax) Act 1999
33
Fringe Benefits Tax Assessment Act 1986
34
Income Tax Assessment Act 1997
35
Taxation Administration Act 1953
36
Tax Laws Amendment (2009 Measures No. 2) Act 2009
36
Tax Laws Amendment (2012 Measures No. 6) Bill 2012 No. , 2012 1
A Bill for an Act to amend the law relating to
1
taxation and superannuation, and for related
2
purposes
3
The Parliament of Australia enacts:
4
1 Short title
5
This Act may be cited as the Tax Laws Amendment (2012
6
Measures No. 6) Act 2012.
7
2 Commencement
8
(1) Each provision of this Act specified in column 1 of the table
9
commences, or is taken to have commenced, in accordance with
10
column 2 of the table. Any other statement in column 2 has effect
11
according to its terms.
12
13
2 Tax Laws Amendment (2012 Measures No. 6) Bill 2012 No. , 2012
Commencement information
Column 1
Column 2
Column 3
Provision(s)
Commencement
Date/Details
1. Sections 1 to 4
and anything in
this Act not
elsewhere covered
by this table
The day this Act receives the Royal Assent.
2. Schedules 1 to
7
The day this Act receives the Royal Assent.
3. Schedule 8,
Part 1
1 July 2007.
1 July 2007
4. Schedule 8,
Part 2
The day this Act receives the Royal Assent.
Note:
This table relates only to the provisions of this Act as originally
1
enacted. It will not be amended to deal with any later amendments of
2
this Act.
3
(2) Any information in column 3 of the table is not part of this Act.
4
Information may be inserted in this column, or information in it
5
may be edited, in any published version of this Act.
6
3 Schedule(s)
7
(1) Each Act, and each set of regulations, that is specified in a
8
Schedule to this Act is amended or repealed as set out in the
9
applicable items in the Schedule concerned, and any other item in a
10
Schedule to this Act has effect according to its terms.
11
(2) The amendment of any regulation under subsection (1) does not
12
prevent the regulation, as so amended, from being amended or
13
repealed by the Governor-General.
14
4 Amendment of assessments
15
Section 170 of the Income Tax Assessment Act 1936 does not
16
prevent the amendment of an assessment if:
17
(a) the assessment was made before the commencement of this
18
section; and
19
(b) the amendment is made within 2 years after that
20
commencement; and
21
Tax Laws Amendment (2012 Measures No. 6) Bill 2012 No. , 2012 3
(c) the amendment is made for the purposes of giving effect to
1
Part 1 of Schedule 1 (about the tax treatment of native title
2
benefits) to this Act.
3
4
Schedule 1 Tax treatment of native title benefits
Part 1 Main amendments
4 Tax Laws Amendment (2012 Measures No. 6) Bill 2012 No. , 2012
Schedule 1--Tax treatment of native title
1
benefits
2
Part 1--Main amendments
3
Income Tax Assessment Act 1936
4
1 Subsection 128U(1) (definition of mining payment)
5
Omit all the words after "but does not", substitute:
6
include:
7
(d) a payment made by a distributing body; or
8
(e) a native title benefit (within the meaning of the Income Tax
9
Assessment Act 1997).
10
Income Tax Assessment Act 1997
11
2 Section 11-55 (after table item headed "National Rental
12
Affordability Scheme")
13
Insert:
14
native title benefits
native title benefits ............................................... 59-50
3 After section 59-45
15
Insert:
16
59-50 Native title benefits
17
(1) To the extent that a
*
native title benefit would otherwise be
18
included in your assessable income, it is not assessable income and
19
is not
*
exempt income if you are an
*
Indigenous person or an
20
*
Indigenous holding entity.
21
(2) To the extent that an amount, or other benefit, arising directly or
22
indirectly from a
*
native title benefit would otherwise be included
23
in your assessable income, it is not assessable income and is not
24
*
exempt income if you are an
*
Indigenous person or an
25
*
Indigenous holding entity.
26
Tax treatment of native title benefits Schedule 1
Main amendments Part 1
Tax Laws Amendment (2012 Measures No. 6) Bill 2012 No. , 2012 5
(3) Neither subsection (1) nor (2) applies to an amount, or benefit, to
1
the extent that it:
2
(a) is for the purposes of meeting the provider's administrative
3
costs; or
4
(b) is remuneration or consideration for the provision of goods or
5
services.
6
(4) Subsection (2) does not apply to an amount, or benefit, to the
7
extent that it arises directly or indirectly:
8
(a) from so much of:
9
(i)
the
*
native title benefit; or
10
(ii) an amount, or benefit, arising directly or indirectly from
11
the native title benefit;
12
as is not
*
non-assessable non-exempt income of an entity
13
because of this section; or
14
(b) from an entity investing any or all of:
15
(i) the native title benefit; or
16
(ii) an amount, or benefit, arising directly or indirectly from
17
the native title benefit.
18
(5)
A
native title benefit is an amount, or
*
non-cash benefit, that:
19
(a)
arises
under:
20
(i) an agreement made under an Act of the Commonwealth,
21
a State or a Territory, or under an instrument made
22
under such an Act; or
23
(ii) an ancillary agreement to such an agreement;
24
to the extent that the amount or benefit relates to an act that
25
would extinguish
*
native title or that would otherwise be
26
wholly or partly inconsistent with the continued existence,
27
enjoyment or exercise of native title; or
28
(b) is compensation determined in accordance with Division 5 of
29
Part 2 of the Native Title Act 1993.
30
Note 1:
Agreements that can be covered by paragraph (a) include:
31
(a) indigenous land use agreements (within the meaning of the
32
Native Title Act 1993); and
33
(b) an agreement of the kind mentioned in paragraph 31(1)(b) of that
34
Act; and
35
(c) recognition and settlement agreements (within the meaning of the
36
Traditional Owner Settlement Act 2010 (Vic.)).
37
Note 2:
Paragraph (a) does not require a determination of native title under the
38
Native Title Act 1993.
39
Schedule 1 Tax treatment of native title benefits
Part 1 Main amendments
6 Tax Laws Amendment (2012 Measures No. 6) Bill 2012 No. , 2012
(6)
An
Indigenous holding entity is:
1
(a)
a
*
distributing body; or
2
(b) a trust, if the beneficiaries of the trust can only be
3
*
Indigenous persons or distributing bodies.
4
4 After section 118-75
5
Insert:
6
118-77 Native title and rights to native title benefits
7
(1)
A
*
capital gain or
*
capital loss you make is disregarded if:
8
(a) you are an
*
Indigenous person or an
*
Indigenous holding
9
entity; and
10
(b) you make the gain or loss because one of the following things
11
happens in relation to a
*
CGT asset mentioned in
12
subsection (2):
13
(i) you transfer the CGT asset to one or more entities that
14
are either Indigenous persons or Indigenous holding
15
entities;
16
(ii) you create a trust, that is an Indigenous holding entity,
17
over the CGT asset;
18
(iii) your ownership of the CGT asset ends, resulting in
19
*
CGT event C2 happening in relation to the CGT asset.
20
(2)
The
*
CGT assets are as follows:
21
(a)
*
native title;
22
(b) the right to be provided with a
*
native title benefit.
23
Note:
Paragraph (a) does not require a determination of native title under the
24
Native Title Act 1993.
25
5 Subsection 995-1(1)
26
Insert:
27
Indigenous holding entity has the meaning given by subsection
28
59-50(6).
29
6 Subsection 995-1(1)
30
Insert:
31
Indigenous person means an individual who is:
32
Tax treatment of native title benefits Schedule 1
Main amendments Part 1
Tax Laws Amendment (2012 Measures No. 6) Bill 2012 No. , 2012 7
(a) a member of the Aboriginal race of Australia; or
1
(b) a descendant of an Indigenous inhabitant of the Torres Strait
2
Islands.
3
7 Subsection 995-1(1)
4
Insert:
5
native title has the same meaning as in the Native Title Act 1993.
6
8 Subsection 995-1(1)
7
Insert:
8
native title benefit has the meaning given by subsection 59-50(5).
9
9 Application of amendments
10
(1)
The amendments made by items 1, 2 and 3 apply in relation to income
11
years starting on or after 1 July 2008.
12
(2)
The amendment made by item 4 applies in relation to CGT events
13
happening on or after 1 July 2008.
14
15
Schedule 1 Tax treatment of native title benefits
Part 2 Other amendments
8 Tax Laws Amendment (2012 Measures No. 6) Bill 2012 No. , 2012
Part 2--Other amendments
1
Income Tax Assessment Act 1936
2
10 Subsection 6(1)
3
Insert:
4
Indigenous land has the same meaning as in the Income Tax
5
Assessment Act 1997.
6
11 Subsection 6(1)
7
Insert:
8
Indigenous person has the same meaning as in the Income Tax
9
Assessment Act 1997.
10
12 Division 11C of Part III (heading)
11
Repeal the heading, substitute:
12
Division 11C--Payments in respect of mining operations
13
on Indigenous land
14
13 Subsection 128U(1) (definition of Aboriginal)
15
Repeal the definition.
16
14 Subsection 128U(1) (definition of Aboriginal land)
17
Repeal the definition.
18
15 Subsection 128U(1) (subparagraphs (d)(i) and (ii) of the
19
definition of distributing body)
20
Omit "Aboriginals" (wherever occurring), substitute "Indigenous
21
persons".
22
16 Subsection 128U(1) (definition of mining payment)
23
Omit "Aboriginal or Aboriginals", substitute "Indigenous person or
24
persons".
25
17 Subsection 128U(1) (paragraph (c) of the definition of
26
mining payment)
27
Tax treatment of native title benefits Schedule 1
Other amendments Part 2
Tax Laws Amendment (2012 Measures No. 6) Bill 2012 No. , 2012 9
Omit "Aboriginals", substitute "Indigenous persons".
1
18 Subsection 128U(1) (subparagraphs (c)(i), (ii) and (iii) of
2
the definition of mining payment)
3
Omit "Aboriginal land" (wherever occurring), substitute "Indigenous
4
land".
5
Income Tax Assessment Act 1997
6
19 Section 11-55 (table item headed "mining")
7
Omit "Aboriginals", substitute "Indigenous persons".
8
20 Subsection 30-300(2)
9
Omit "Aboriginal arts", substitute "arts of
*
Indigenous persons".
10
21 Paragraphs 59-15(1)(b) and (2)(b)
11
Omit "
*
Aboriginals", substitute "
*
Indigenous persons".
12
22 Subsection 995-1(1) (definition of Aboriginal)
13
Repeal the definition.
14
23 Subsection 995-1(1)
15
Insert:
16
Indigenous land means any estate or interest in land that, under an
17
*
Australian law relating to
*
Indigenous persons, is held for the use
18
or benefit of Indigenous persons.
19
20
Schedule 2 Deductible gift recipients
10 Tax Laws Amendment (2012 Measures No. 6) Bill 2012 No. , 2012
Schedule 2--Deductible gift recipients
1
2
Income Tax Assessment Act 1997
3
1 Subsection 30-25(2) (table item 2.2.34)
4
Omit "1 July 2012", substitute "1 July 2015".
5
2 Subsection 30-25(2) (table item 2.2.38)
6
Omit "1 July 2012", substitute "1 July 2016".
7
3 Subsection 30-25(2) (at the end of the table)
8
Add:
9
2.2.41
Teach for Australia
the gift must be made
after 31 December 2012
4 Subsection 30-80(2) (after table item 9.2.8)
10
Insert:
11
9.2.9
AE1 Inc
the gift must be made
after 25 September 2011
and before 26 September
2014
5 Subsection 30-80(2) (table item 9.2.10)
12
Omit "and before 28 June 2012".
13
6 Subsection 30-80(2) (table item 9.2.24 (table item dealing
14
with Rhodes Trust in Australia))
15
Omit "9.2.24", substitute "9.2.25".
16
Note:
This item corrects duplicated numbering.
17
7 Section 30-315 (after table item 2AAB)
18
Insert:
19
2AAC AE1
Inc
item
9.2.9
8 Section 30-315 (table item 97AAA)
20
Omit "9.2.24", substitute "9.2.25".
21
Note:
This item is consequential on item 6.
22
Deductible gift recipients Schedule 2
Tax Laws Amendment (2012 Measures No. 6) Bill 2012 No. , 2012 11
9 Section 30-315 (after table item 114)
1
Insert:
2
114A
Teach for Australia
item 2.2.41
3
Schedule 3 Geothermal energy
12 Tax Laws Amendment (2012 Measures No. 6) Bill 2012 No. , 2012
Schedule 3--Geothermal energy
1
2
Income Tax Assessment Act 1997
3
1 Section 10-5 (after table item headed "general insurance
4
companies and companies that self insure")
5
Insert:
6
geothermal energy
providing geothermal exploration information ................. 15-40
2 Section 12-5 (table item headed "capital allowances")
7
Omit:
8
exploration or prospecting ................................................ 40-80(1), 40-730
substitute:
9
exploration or prospecting ................................................ 40-80(1) and (1A),
40-730
geothermal exploration information ................................ Subdivision 40-B
geothermal exploration rights ........................................... Subdivision 40-B
3 Section 15-40 (heading)
10
Repeal the heading, substitute:
11
15-40 Providing mining, quarrying or prospecting information or
12
geothermal exploration information
13
4 Section 15-40
14
After "prospecting information", insert "or
*
geothermal exploration
15
information".
16
5 After paragraph 40-30(2)(b)
17
Insert:
18
(ba)
*
geothermal exploration rights;
19
(bb)
*
geothermal exploration information;
20
6 Section 40-40 (after table item 9)
21
Insert:
22
9A
*
Geothermal exploration information that an entity
The entity
Geothermal energy Schedule 3
Tax Laws Amendment (2012 Measures No. 6) Bill 2012 No. , 2012 13
has and that is relevant to:
(a)
*
geothermal energy extraction carried on, or
proposed to be carried on, by the entity; or
(b) a
*
business carried on by the entity that includes
*
exploration or prospecting for
*
geothermal
energy resources from which energy can be
extracted by geothermal energy extraction;
whether or not the information is generally
available
7 After subsection 40-80(1)
1
Insert:
2
(1A) The decline in value of a
*
depreciating asset you
*
hold is the
3
asset's
*
cost if:
4
(a) you first use the asset for
*
exploration or prospecting for
5
*
geothermal energy resources from which energy can be
6
extracted by
*
geothermal energy extraction; and
7
(b) when you first use the asset, you do not use it for:
8
(i) development drilling for geothermal energy resources;
9
or
10
(ii) operations in the course of working a property
11
containing geothermal energy resources; and
12
(c) you satisfy one or more of these subparagraphs at the asset's
13
*
start time:
14
(i) you carry on geothermal energy extraction;
15
(ii) it would be reasonable to conclude you proposed to
16
carry on geothermal energy extraction;
17
(iii) you carry on a
*
business of, or a business that included,
18
exploration or prospecting for geothermal energy
19
resources from which energy can be extracted by
20
geothermal energy extraction, and expenditure on the
21
asset was necessarily incurred in carrying on that
22
business.
23
8 Subsection 40-290(5)
24
Repeal the subsection, substitute:
25
Schedule 3 Geothermal energy
14 Tax Laws Amendment (2012 Measures No. 6) Bill 2012 No. , 2012
Exception: mining, quarrying or prospecting information and
1
geothermal exploration information
2
(5) This section does not apply to
*
mining, quarrying or prospecting
3
information or
*
geothermal exploration information.
4
9 Subsection 40-300(2) (at the end of the table)
5
Add:
6
12
You stop
*
holding a
*
geothermal
exploration right relating to an area
because you
*
acquire a
*
geothermal
energy extraction right relating to the
same area or an area that is not
significantly different
Zero
10 Paragraph 40-630(1)(b)
7
After "operations", insert "or
*
geothermal energy extraction".
8
11 Subsection 40-630(1) (note)
9
After "operations", insert "or geothermal energy extraction".
10
12 Paragraphs 40-630(1A)(b), (1B)(b) and (3)(b)
11
After "operations", insert "or
*
geothermal energy extraction".
12
13 Paragraph 40-650(3)(a)
13
After "operations", insert "or
*
geothermal energy extraction".
14
14 At the end of paragraph 40-650(3)(b)
15
Add "or that extraction".
16
15 Before subsection 40-730(1)
17
Insert:
18
Exploration or prospecting for minerals or quarry materials
19
16 After subsection 40-730(2)
20
Insert:
21
Geothermal energy Schedule 3
Tax Laws Amendment (2012 Measures No. 6) Bill 2012 No. , 2012 15
Exploration or prospecting for geothermal energy resources
1
(2A) You can deduct expenditure you incur in an income year on
2
*
exploration or prospecting for
*
geothermal energy resources from
3
which energy can be extracted by
*
geothermal energy extraction if:
4
(a) you carried on geothermal energy extraction; or
5
(b) it would be reasonable to conclude you proposed to carry on
6
geothermal energy extraction; or
7
(c) you carried on a
*
business of, or a business that included,
8
exploration or prospecting for geothermal energy resources
9
from which energy can be extracted by geothermal energy
10
extraction, and the expenditure was necessarily incurred in
11
carrying on that business.
12
(2B) However, you cannot deduct expenditure under subsection (2A) if
13
it is expenditure on:
14
(a) development drilling for
*
geothermal energy resources; or
15
(b) operations in the course of working a property containing
16
geothermal energy resources.
17
No deduction under this section for cost of depreciating asset
18
17 Subsection 40-730(3)
19
Omit "Also, you cannot deduct expenditure under subsection (1)",
20
substitute "You cannot deduct expenditure under subsection (1) or
21
(2A)".
22
18 Before subsection 40-730(4)
23
Insert:
24
Definitions
25
19 Paragraph 40-730(4)(b)
26
After "petroleum mining", insert "and for
*
geothermal energy
27
resources".
28
20 Paragraph 40-730(4)(c)
29
After "materials", insert ", or of extracting energy from geothermal
30
energy resources,".
31
21 At the end of subsection 40-730(4)
32
Schedule 3 Geothermal energy
16 Tax Laws Amendment (2012 Measures No. 6) Bill 2012 No. , 2012
Add:
1
; and (e) obtaining
*
geothermal exploration information associated
2
with the search for, and evaluation of, areas containing
3
geothermal energy resources.
4
22 After subsection 40-730(7)
5
Insert:
6
(7A)
Geothermal energy resources means matter occurring naturally
7
within the Earth and containing energy as heat.
8
(7B)
Geothermal energy extraction means operations that are for:
9
(a) the extraction of energy from
*
geothermal energy resources;
10
and
11
(b)
the
*
purpose of producing assessable income.
12
23 At the end of section 40-730
13
Add:
14
(9)
Geothermal exploration information is geological, geophysical or
15
technical information that:
16
(a) relates to the presence, absence or extent of
*
geothermal
17
energy resources in an area; or
18
(b) is likely to help in determining the presence, absence or
19
extent of such resources in an area.
20
24 Subparagraph 43-70(2)(fa)(iv)
21
After "40-80(1)", insert "or (1A)".
22
25 At the end of Subdivision 112-A
23
Add:
24
112-38 Geothermal extraction rights
25
The first element of the
*
cost base and
*
reduced cost base of a
26
*
geothermal energy extraction right is nil if:
27
(a)
you
*
acquire the right because you
*
held a
*
geothermal
28
exploration right; and
29
(b) you stopped holding the geothermal exploration right because
30
you acquired the geothermal energy extraction right; and
31
Geothermal energy Schedule 3
Tax Laws Amendment (2012 Measures No. 6) Bill 2012 No. , 2012 17
(c) the area the geothermal energy extraction right relates to is
1
the same as, or not significantly different from, the area the
2
geothermal exploration right related to.
3
26 After paragraph 165-55(2)(b)
4
Insert:
5
(ba) deductions for exploration or prospecting for
*
geothermal
6
energy resources (see section 40-80 and Subdivision 40-H);
7
27 Paragraphs 716-300(1)(b) and (c)
8
After "40-80(1)", insert "or (1A)".
9
28 Subsection 716-300(1) (note)
10
Omit "Subsection 40-80(1), which is in that Subdivision, provides",
11
substitute "Subsections 40-80(1) and (1A), which are in that
12
Subdivision, provide".
13
29 Subsection 995-1(1)
14
Insert:
15
geothermal energy extraction has the meaning given by subsection
16
40-730(7B).
17
30 Subsection 995-1(1)
18
Insert:
19
geothermal energy extraction right means:
20
(a) an authority, licence, permit or right under an
*
Australian law
21
to carry on
*
geothermal energy extraction; or
22
(b) a lease of land that allows the lessee to carry on geothermal
23
energy extraction on the land; or
24
(c) an interest in such an authority, licence, permit, right or lease.
25
31 Subsection 995-1(1)
26
Insert:
27
geothermal energy resources has the meaning given by subsection
28
40-730(7A).
29
32 Subsection 995-1(1)
30
Schedule 3 Geothermal energy
18 Tax Laws Amendment (2012 Measures No. 6) Bill 2012 No. , 2012
Insert:
1
geothermal exploration information has the meaning given by
2
subsection 40-730(9).
3
33 Subsection 995-1(1)
4
Insert:
5
geothermal exploration right means:
6
(a) an authority, licence, permit or right under an
*
Australian law
7
to explore for
*
geothermal energy resources; or
8
(b) a lease of land that allows the lessee to explore for
9
geothermal energy resources on the land; or
10
(c) an interest in such an authority, licence, permit, right or lease.
11
34 Application of amendments
12
(1)
The amendments of section 15-40 of the Income Tax Assessment Act
13
1997 made by this Schedule apply to amounts received on or after
14
1 July 2012.
15
(2)
The amendments of sections 40-30, 40-40, 40-80, 40-290 and 716-300
16
of the Income Tax Assessment Act 1997 made by this Schedule apply to
17
depreciating assets whose start time is on or after 1 July 2012.
18
(3)
The amendment of section 40-300 of the Income Tax Assessment Act
19
1997 made by this Schedule applies to depreciating assets that started to
20
be held on or after 1 July 2012.
21
(4)
The amendments of sections 40-630 and 40-650 and subsection
22
40-730(3) of the Income Tax Assessment Act 1997 made by this
23
Schedule apply to expenditure incurred on or after 1 July 2012.
24
(5)
Subsections 40-730(2A) and (2B) of the Income Tax Assessment Act
25
1997 apply to expenditure incurred on or after 1 July 2012.
26
(6)
Section 112-38 of the Income Tax Assessment Act 1997 applies to
27
geothermal energy extraction rights acquired on or after 1 July 2012.
28
29
Extension of interim streaming provisions for managed investment trusts Schedule 4
Tax Laws Amendment (2012 Measures No. 6) Bill 2012 No. , 2012 19
Schedule 4--Extension of interim streaming
1
provisions for managed investment
2
trusts
3
4
Tax Laws Amendment (2011 Measures No. 5) Act 2011
5
1 Subitem 51(5) of Schedule 2 (heading)
6
Repeal the heading, substitute:
7
MITs and the 2010-11, 2011-12, 2012-13 and 2013-14 income
8
years
9
2 Subitem 51(6) of Schedule 2
10
Repeal the subitem, substitute:
11
(6)
The amendments made by this Schedule do not apply to an assessment
12
for an income year mentioned in paragraph (7)(c) unless the trustee of
13
the entity makes a choice in accordance with subitem (7) in relation to
14
the income year or an earlier income year.
15
3 At the end of subitem 51(7) of Schedule 2
16
Add:
17
; and (c) can only be made in relation to the following income years:
18
(i) the 2010-11 income year;
19
(ii) the 2011-12 income year;
20
(iii) the 2012-13 income year;
21
(iv) the 2013-14 income year.
22
23
Schedule 5 Rebate for medical expenses
20 Tax Laws Amendment (2012 Measures No. 6) Bill 2012 No. , 2012
Schedule 5--Rebate for medical expenses
1
2
Income Tax Assessment Act 1936
3
1 Subsection 6(1)
4
Insert:
5
adjusted taxable income for rebates means adjusted taxable
6
income (within the meaning of the A New Tax System (Family
7
Assistance) Act 1999, disregarding clauses 3 and 3A of Schedule 3
8
to that Act).
9
2 Subsection 6(1)
10
Insert:
11
family tier 1 threshold has the meaning given by the A New Tax
12
System (Medicare Levy Surcharge--Fringe Benefits) Act 1999.
13
3 Subsection 6(1)
14
Insert:
15
medical expense rebate higher phase-in limit has the meaning
16
given by subsection 159Q(5).
17
4 Subsection 6(1)
18
Insert:
19
medical expense rebate lower phase-in limit has the meaning
20
given by subsection 159Q(6).
21
5 Subsection 6(1)
22
Insert:
23
rebatable medical expense amount has the meaning given by
24
subsections 159P(1) and (3).
25
6 Subsection 6(1)
26
Insert:
27
Rebate for medical expenses Schedule 5
Tax Laws Amendment (2012 Measures No. 6) Bill 2012 No. , 2012 21
singles tier 1 threshold has the meaning given by the A New Tax
1
System (Medicare Levy Surcharge--Fringe Benefits) Act 1999.
2
7 Section 159HA (heading)
3
Omit "sections 159J, 159L and 159P", substitute "this Subdivision".
4
8 Subsection 159HA(1)
5
Omit "159P", substitute "159Q".
6
9 Subsection 159HA(7) (definition of indexable amount)
7
Repeal the definition, substitute:
8
indexable amount means:
9
(a) an amount mentioned in column 1 of an item of the following
10
table; or
11
(b) if that amount has been altered under this section in relation
12
to the year of income mentioned in column 2 of the item, or a
13
later year of income--the altered amount:
14
15
Indexable amounts
Item Column
1
Indexable amount
Column 2
First indexable year
1
the amount specified in:
(a) paragraph 23AB(7A)(a); or
(b) paragraph (d) of the definition of
relevant rebate amount in subsection
79A(4); or
(c) paragraph (d) of the definition of
concessional rebate amount in
subsection 79B(6)
the 2008-09 year of
income
2
an amount specified in subsection
159J(1B) or (2) (other than the amounts
specified in column 3 of the table in
subsection 159J(2) in respect of a
dependant included in class 3 or 4)
the 2008-09 year of
income
3
the amounts specified in subsection
159L(2)
the 2008-09 year of
income
4
the amount specified in subsection
159Q(5) (medical expense rebate higher
the 2013-14 year of
income
Schedule 5 Rebate for medical expenses
22 Tax Laws Amendment (2012 Measures No. 6) Bill 2012 No. , 2012
Indexable amounts
Item Column
1
Indexable amount
Column 2
First indexable year
phase-in limit)
5
the amount specified in subsection
159Q(6) (medical expense rebate lower
phase-in limit)
the 2011-12 year of
income
10 Paragraphs 159J(1AB)(a) and (1AC)(a) and (b)
1
Omit "adjusted taxable income", substitute "adjusted taxable income for
2
rebates".
3
11 Paragraph 159J(1AC)(c) (formula)
4
Repeal the formula, substitute:
5
Spouse's adjusted taxable
Numbers of days a spouse
income for rebates
Number of days in the year
for the year
�
6
12 Subsection 159J(1AC) (note)
7
Omit "adjusted taxable income", substitute "adjusted taxable income for
8
rebates".
9
13 Subsections 159J(4) and (5)
10
Omit "adjusted taxable income", substitute "adjusted taxable income for
11
rebates".
12
14 Subsection 159J(6) (definition of adjusted taxable income)
13
Repeal the definition.
14
15 Before subsection 159P(1)
15
Insert:
16
Definition of rebatable medical expense amount
17
16 Subsections 159P(1) and (3)
18
Omit "shall, for the purposes of this section, be treated as a rebatable
19
amount", substitute "is a rebatable medical expense amount".
20
Rebate for medical expenses Schedule 5
Tax Laws Amendment (2012 Measures No. 6) Bill 2012 No. , 2012 23
17 Subsection 159P(3A)
1
Repeal the subsection, substitute:
2
Rebate
3
(3A) A taxpayer is entitled to a rebate of tax in the taxpayer's
4
assessment in respect of income of a year of income if one or more
5
rebatable medical expense amounts are applicable to the taxpayer
6
in respect of the year.
7
(3AA) The amount of the rebate is:
8
(a) if the medical expense rebate higher phase-in limit applies--
9
10% of the amount by which the total of the rebatable
10
medical expense amounts exceeds the medical expense rebate
11
higher phase-in limit; or
12
(b) otherwise--20% of the amount by which the total of the
13
rebatable medical expense amounts exceeds the medical
14
expense rebate lower phase-in limit.
15
Note:
For the phase-in limits, see section 159Q.
16
18 Subsection 159P(3B)
17
Omit "treated, for the purposes of this section, as a rebatable amount",
18
substitute "a rebatable medical expense amount".
19
19 Before subsection 159P(4)
20
Insert:
21
Other definitions
22
20 At the end of Subdivision A of Division 17 of Part III
23
Add:
24
159Q Rebate for medical expenses--phase-in limits
25
When medical expense rebate higher phase-in limit applies
26
(1) The medical expense rebate higher phase-in limit applies if:
27
(a) an item of the following table applies to the following
28
individual (the principal individual) for the year of income:
29
(i) other than in a case to which subparagraph (ii) applies--
30
the taxpayer;
31
Schedule 5 Rebate for medical expenses
24 Tax Laws Amendment (2012 Measures No. 6) Bill 2012 No. , 2012
(ii) in the case of an assessment mentioned in paragraph
1
159P(3)(a)--the beneficiary; and
2
(b) the amount mentioned in column 2 of the item exceeds the
3
threshold mentioned in column 3 of the item.
4
5
When medical expense rebate higher phase-in limit applies
Item Column
1
This item applies to
the principal
individual for a year
of income if:
Column 2
Income amount
Column 3
Threshold
1
on the last day of the
year, the principal
individual is married
(within the meaning of
the A New Tax System
(Medicare Levy
Surcharge--Fringe
Benefits) Act 1999).
the total of:
(a) the principal
individual's
adjusted taxable
income for rebates
for the year; and
(b) the adjusted taxable
income for rebates
for the year of the
individual to whom
the principal
individual is
married
the principal
individual's family tier
1 threshold for the year
2
(a) item 1 does not
apply; and
(b) on any day in the
year, the principal
individual has one
or more dependants
(within the meaning
of the A New Tax
System (Medicare
Levy Surcharge--
Fringe Benefits) Act
1999).
the principal
individual's adjusted
taxable income for
rebates for the year
the principal
individual's family tier
1 threshold for the year
3
items 1 and 2 do not
apply.
the principal
individual's adjusted
taxable income for
rebates for the year
the principal
individual's singles tier
1 threshold for the year
Rebate for medical expenses Schedule 5
Tax Laws Amendment (2012 Measures No. 6) Bill 2012 No. , 2012 25
(2) The reference in item 1 of the table in subsection (1) to the last day
1
of the year is treated as being a reference to the day the principal
2
individual dies, if the principal individual dies during the year.
3
(3) Despite section 5 of the A New Tax System (Medicare Levy
4
Surcharge--Fringe Benefits) Act 1999, for the purposes of item 2
5
of the table in subsection (1) of this section, an individual is treated
6
as not being a dependant of the principal individual on a day if the
7
individual is married (within the meaning of that Act) to the
8
principal individual on that day.
9
(4) In the case of an assessment mentioned in paragraph 159P(3)(a),
10
treat a reference in the table in subsection (1) to the principal
11
individual's adjusted taxable income for rebates for the year as
12
being a reference to the amount in respect of which the trustee is
13
liable to be assessed, as mentioned in that paragraph.
14
Phase-in limits
15
(5)
The
medical expense rebate higher phase-in limit is $5,000.
16
Note:
This amount is indexed annually: see section 159HA.
17
(6)
The
medical expense rebate lower phase-in limit is $2,000.
18
Note:
This amount is indexed annually: see section 159HA.
19
21 Application of amendments
20
The amendments made by this Schedule apply to assessments for the
21
2012-13 year of income and later years of income.
22
23
Schedule 6 Limited recourse debt
26 Tax Laws Amendment (2012 Measures No. 6) Bill 2012 No. , 2012
Schedule 6--Limited recourse debt
1
2
Income Tax Assessment Act 1997
3
1 Subsection 243-20(2)
4
Repeal the subsection, substitute:
5
(2) An obligation imposed by law on an entity (the debtor) to pay an
6
amount to another entity (the creditor) is also a limited recourse
7
debt if it is reasonable to conclude that the rights of the creditor as
8
against the debtor in the event of default in payment of the debt or
9
of interest:
10
(a) are capable of being limited in the way mentioned in
11
subsection (1); or
12
(b) are in substance or effect limited wholly or predominantly to
13
rights (including the right to money payable) in relation to
14
any or all of the following:
15
(i)
the
*
debt property or the use of the debt property;
16
(ii) goods produced, supplied, carried, transmitted or
17
delivered, or services provided, by means of the debt
18
property;
19
(iii) the loss or disposal of the whole or a part of the debt
20
property or of the debtor's interest in the debt property.
21
Note:
Paragraph (b) could apply to a special purpose entity. For example, an
22
entity's only significant asset is one that it financed by way of a bank
23
loan. The bank's rights to recover the debt (if the entity defaults) are
24
not contractually limited, however they are in effect limited to rights
25
in relation to the asset.
26
2 Subsection 243-20(3)
27
Omit the second sentence.
28
3 After subsection 243-20(3)
29
Insert:
30
(3A) In reaching a conclusion for the purposes of subsection (2) or (3),
31
have regard to the following:
32
(a) the debtor's assets (other than assets that are indemnities or
33
guarantees provided in relation to the debt);
34
(b)
any
*
arrangement to which the debtor is a party;
35
Limited recourse debt Schedule 6
Tax Laws Amendment (2012 Measures No. 6) Bill 2012 No. , 2012 27
(c) except for the purposes of paragraph (2)(b)--whether all of
1
the debtor's assets would be available for the purpose of
2
discharging the debt (other than assets that are security for
3
other debts of the debtor or any other entity);
4
(d) whether the debtor and creditor are dealing at
*
arm's length
5
in relation to the debt.
6
4 Application of amendments
7
The amendments made by this Schedule apply in relation to debt
8
arrangements terminated at or after 7.30 pm, by legal time in the
9
Australian Capital Territory, on 8 May 2012.
10
11
Schedule 7 In-house fringe benefits under salary packaging arrangements
28 Tax Laws Amendment (2012 Measures No. 6) Bill 2012 No. , 2012
Schedule 7--In-house fringe benefits under
1
salary packaging arrangements
2
3
Fringe Benefits Tax Assessment Act 1986
4
1 Subsection 41(2)
5
Repeal the subsection, substitute:
6
(2) This section does not apply to food or drink provided to, and
7
consumed by, an employee if the food or drink is provided under a
8
salary packaging arrangement.
9
2 Before paragraph 42(1)(a)
10
Insert:
11
(aa) if the recipient's property was provided to the recipient under
12
a salary packaging arrangement--an amount equal to the
13
notional value of the recipient's property at the provision
14
time; or
15
3 Paragraph 42(1)(a)
16
Omit "if the recipient's property", substitute "if paragraph (aa) does not
17
apply and the recipient's property".
18
4 Paragraph 42(1)(b)
19
Omit "if paragraph (a) does not apply", substitute "if neither
20
paragraph (aa) nor (a) applies".
21
5 At the end of paragraphs 47(1)(a), (b), (c) and (e)
22
Add "and".
23
6 After paragraph 47(1)(e)
24
Insert:
25
(f) the benefit is not provided under a salary packaging
26
arrangement;
27
7 Before paragraph 48(a)
28
Insert:
29
In-house fringe benefits under salary packaging arrangements Schedule 7
Tax Laws Amendment (2012 Measures No. 6) Bill 2012 No. , 2012 29
(aa) if the benefit was provided to the recipient under a salary
1
packaging arrangement--an amount equal to the notional
2
value of the benefit at the comparison time; or
3
8 Paragraph 48(a)
4
Omit "where", substitute "if paragraph (aa) does not apply and".
5
9 Before paragraph 49(a)
6
Insert:
7
(aa) if the benefit was provided to the recipient under a salary
8
packaging arrangement--an amount equal to the notional
9
value of the benefit at the comparison time; or
10
10 Paragraph 49(a)
11
Omit "where", substitute "if paragraph (aa) does not apply and".
12
11 Paragraph 62(2)(a)
13
After "in-house fringe benefit", insert "not provided under a salary
14
packaging arrangement".
15
12 Subsection 136(1)
16
Insert:
17
salary packaging arrangement means an arrangement under
18
which a benefit is provided to an employee if:
19
(a) the benefit is provided in return for the employee agreeing to
20
a reduction in the employee's salary or wages that would not
21
have happened apart from the arrangement; or
22
(b) the arrangement is part of the employee's remuneration
23
package, and the benefit is provided in circumstances where
24
it is reasonable to conclude that the employee's salary or
25
wages would be greater if the benefit were not provided.
26
13 Application of amendments
27
(1)
The amendments made by this Schedule apply in relation to benefits
28
provided on or after 22 October 2012.
29
(2)
However, the amendments made by items 1 to 11 do not apply in
30
relation to benefits provided to an employee under an existing salary
31
Schedule 7 In-house fringe benefits under salary packaging arrangements
30 Tax Laws Amendment (2012 Measures No. 6) Bill 2012 No. , 2012
packaging arrangement to the extent that the benefits are provided
1
before the earlier of:
2
(a) 1 April 2014; and
3
(b) the first time on or after 22 October 2012 that the existing
4
salary packaging arrangement is varied in a material way.
5
(3)
For the purposes of subitem (2), an existing salary packaging
6
arrangement is a salary packaging arrangement entered into by the
7
employer and employee before 22 October 2012.
8
9
Miscellaneous amendments Schedule 8
Amendments of superannuation regulations Part 1
Tax Laws Amendment (2012 Measures No. 6) Bill 2012 No. , 2012 31
Schedule 8--Miscellaneous amendments
1
Part 1--Amendments of superannuation regulations
2
Retirement Savings Accounts Regulations 1997
3
1 Paragraph 4A.04(1)(b)
4
Omit "allocated pension or market linked pension", substitute
5
"allocated pension, market linked pension or account based pension".
6
2 Paragraph 4A.05(6A)(b)
7
Omit "allocated pension or market linked pension", substitute
8
"allocated pension, market linked pension or account based pension".
9
3 Paragraph 4A.08(1)(b)
10
Omit "allocated pension or market linked pension", substitute
11
"allocated pension, market linked pension or account based pension".
12
4 Subparagraph 4A.15(1)(b)(ii)
13
Omit "allocated pension or market linked pension", substitute
14
"allocated pension, market linked pension or account based pension".
15
5 Paragraph 4A.18(1)(b)
16
Omit "allocated pension or market linked pension", substitute
17
"allocated pension, market linked pension or account based pension".
18
6 Paragraph 4A.27(1)(b)
19
Omit "allocated pension or market linked pension", substitute
20
"allocated pension, market linked pension or account based pension".
21
7 Paragraph 4A.28(1)(b)
22
Omit "allocated pension or market linked pension", substitute
23
"allocated pension, market linked pension or account based pension".
24
Superannuation Industry (Supervision) Regulations 1994
25
8 Paragraph 7A.03A(1)(b)
26
Schedule 8 Miscellaneous amendments
Part 1 Amendments of superannuation regulations
32 Tax Laws Amendment (2012 Measures No. 6) Bill 2012 No. , 2012
Omit "allocated pension or market linked pension", substitute
1
"allocated pension, market linked pension or account-based pension".
2
9 Paragraph 7A.03B(6A)(b)
3
Omit "allocated pension or market linked pension", substitute
4
"allocated pension, market linked pension or account-based pension".
5
10 Subparagraph 7A.03E(b)(i)
6
Omit "allocated pension or market linked pension", substitute
7
"allocated pension, market linked pension or account-based pension".
8
11 Subparagraph 7A.04(1)(b)(ii)
9
Omit "allocated pension or market linked pension", substitute
10
"allocated pension, market linked pension or account-based pension".
11
12 Paragraph 7A.07(1)(b)
12
Omit "allocated pension or market linked pension", substitute
13
"allocated pension, market linked pension or account-based pension".
14
13 Paragraph 7A.16(1)(b)
15
Omit "allocated pension or market linked pension", substitute
16
"allocated pension, market linked pension or account-based pension".
17
14 Subregulation 7A.16(4)
18
Omit "allocated pension or a market linked pension", substitute
19
"allocated pension, market linked pension or account-based pension".
20
15 Paragraph 7A.17(1)(b)
21
Omit "allocated pension or market linked pension", substitute
22
"allocated pension, market linked pension or account-based pension".
23
16 Paragraph 7A.18(1)(b)
24
Omit "allocated pension or market linked pension", substitute
25
"allocated pension, market linked pension or account-based pension".
26
27
Miscellaneous amendments Schedule 8
Other amendments of taxation laws Part 2
Tax Laws Amendment (2012 Measures No. 6) Bill 2012 No. , 2012 33
Part 2--Other amendments of taxation laws
1
A New Tax System (Goods and Services Tax) Act 1999
2
17 Section 75-15
3
Repeal the section, substitute:
4
75-15 Subdivided real property
5
(1) This section applies if you make a
*
taxable supply of
*
real property
6
that relates only to part of the land or premises in which you
7
acquired an interest, unit or lease.
8
(2) In applying any of sections 75-10 to 75-14 in working out the
9
*
margin for the
*
taxable supply, use only the corresponding
10
proportion of the following (as applicable):
11
(a)
the
*
consideration for the acquisition or supply referred to in
12
that section of that interest, unit or lease;
13
(b)
an
*
approved valuation of that interest, unit or lease as at the
14
day referred to in that section;
15
(c)
the
*
GST inclusive market value of that interest, unit or lease
16
as at the day or time referred to in that section.
17
Example 1: If subsection 75-11(2) applies, use only the corresponding proportion
18
of an approved valuation of your interest, unit or lease in the
19
unsubdivided property as at 1 July 2000.
20
Example 2: If subparagraph 75-11(5)(e)(ii) applies, use only the corresponding
21
proportion of the consideration for the acquisition of the interest, unit
22
or lease in the unsubdivided property by the entity that supplied it to
23
you.
24
18 Section 195-1 (at the end of the definition of margin)
25
Add:
26
Note:
This meaning is affected by sections 75-12 to 75-15.
27
19 Application of amendments
28
(1)
The amendments made by items 17 and 18 apply in relation to taxable
29
supplies made on or after the start of the first quarterly tax period
30
starting on or after the commencement of those items.
31
Schedule 8 Miscellaneous amendments
Part 2 Other amendments of taxation laws
34 Tax Laws Amendment (2012 Measures No. 6) Bill 2012 No. , 2012
(2)
For the purposes of subitem (1), it does not matter whether quarterly tax
1
periods are the tax periods that apply to you.
2
Fringe Benefits Tax Assessment Act 1986
3
20 At the end of subsection 132(1) (before the note)
4
Add:
5
Penalty: 30 penalty units.
6
21 At the end of subsection 132(2)
7
Add:
8
Penalty: 30 penalty units.
9
22 At the end of subsection 132(3)
10
Add:
11
Penalty: 30 penalty units.
12
23 Subsection 132(5) (penalty)
13
Repeal the penalty.
14
24 Subsection 132(5) (notes)
15
Repeal the notes.
16
25 At the end of section 132
17
Add:
18
(6) An offence under this section is an offence of strict liability.
19
Note 1:
For strict liability, see section 6.1 of the Criminal Code.
20
Note 2:
There is an administrative penalty if you do not keep or retain records
21
as required by this section: see section 288-25 in Schedule 1 to the
22
Taxation Administration Act 1953.
23
Note 3:
See section 4AA of the Crimes Act 1914 for the current value of a
24
penalty unit.
25
26 Application of amendment
26
The amendment made by item 25 applies in relation to offences
27
committed on or after the commencement of that item.
28
Miscellaneous amendments Schedule 8
Other amendments of taxation laws Part 2
Tax Laws Amendment (2012 Measures No. 6) Bill 2012 No. , 2012 35
Income Tax Assessment Act 1997
1
27 Section 13-1 (table item headed "water")
2
Repeal the item.
3
28 Section 67-23 (table item 25)
4
Repeal the item.
5
29 Subsection 328-130(2) (example)
6
Omit "and trustees of the same trust".
7
30 Subsections 393-40(1) and (2)
8
Omit "within 12 months after the end of", substitute "before the last day
9
of the 12 months after".
10
31 Application of amendments
11
(1)
The amendments made by item 30 apply to assessments for the 2010-11
12
income year and later income years.
13
(2)
Former subsection 393-37(1) in Schedule 2G to the Income Tax
14
Assessment Act 1936, as inserted by Part 1 of Schedule 1 to the
15
Taxation Laws Amendment (Earlier Access to Farm Management
16
Deposits) Act 2002, is taken to always have applied as if the references
17
in that former subsection to:
18
(a) within 12 months; and
19
(b) within the 12 months;
20
were references to before the last day of the 12 months.
21
(3)
Former subsections 393-37(1) and (2) in Schedule 2G to the Income
22
Tax Assessment Act 1936, as inserted by Part 2 of Schedule 1 to the
23
Taxation Laws Amendment (Earlier Access to Farm Management
24
Deposits) Act 2002, are taken to always have applied as if the references
25
in those former subsections to within the 12 months were references to
26
before the last day of the 12 months.
27
32 Division 402
28
Repeal the Division.
29
Schedule 8 Miscellaneous amendments
Part 2 Other amendments of taxation laws
36 Tax Laws Amendment (2012 Measures No. 6) Bill 2012 No. , 2012
Taxation Administration Act 1953
1
33 Section 45-630 in Schedule 1 (note 1)
2
Omit "income law", substitute "income tax law".
3
34 Subdivision 290-A in Schedule 1 (heading)
4
Repeal the heading, substitute:
5
Subdivision 290-A--Preliminary
6
35 At the end of Subdivision 290-A in Schedule 1
7
Add:
8
290-10 Extra-territorial application
9
This Division extends to acts, omissions, matters and things
10
outside Australia.
11
36 Application of amendment
12
The amendment made by item 35 applies in relation to acts, omissions,
13
matters and things happening on or after the commencement of that
14
item.
15
37 Subsection 355-70(1) in Schedule 1 (table item 3)
16
Omit "1 July 2013", substitute "1 July 2015".
17
Tax Laws Amendment (2009 Measures No. 2) Act 2009
18
38 Part 2 of Schedule 4
19
Repeal the Part.
20
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