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This is a Bill, not an Act. For current law, see the Acts databases.
2019
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Treasury Laws Amendment (2018
Measures No. 2) Bill 2019
No. , 2019
(Treasury)
A Bill for an Act to amend the law relating to
corporations, consumer credit and taxation, and for
related purposes
No. , 2019
Treasury Laws Amendment (2018 Measures No. 2) Bill 2019
i
Contents
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 1
3
Schedules ........................................................................................... 2
4
Independent review of operation of Schedule 1 ................................. 2
Schedule 1--FinTech Sandbox Regulatory Licensing
Exemptions
4
Part 1--Amendment of the Corporations Act 2001
4
Corporations Act 2001
4
Part 2--Amendment of the National Consumer Credit
Protection Act 2009
5
National Consumer Credit Protection Act 2009
5
Schedule 2--Innovation measures
6
Part 1--Venture capital investments
6
Income Tax Assessment Act 1997
6
Part 2--Early stage investor tax offsets
7
Income Tax Assessment Act 1997
7
Part 3--Managed investment trusts
10
Income Tax Assessment Act 1997
10
Part 4--Public trading trusts
11
Income Tax Assessment Act 1936
11
No. , 2019
Treasury Laws Amendment (2018 Measures No. 2) Bill 2019
1
A Bill for an Act to amend the law relating to
1
corporations, consumer credit and taxation, and for
2
related purposes
3
The Parliament of Australia enacts:
4
1 Short title
5
This Act is the Treasury Laws Amendment (2018 Measures No. 2)
6
Act 2019.
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
Treasury Laws Amendment (2018 Measures No. 2) Bill 2019
No. , 2019
Commencement information
Column 1
Column 2
Column 3
Provisions
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. Schedule 1
The day after this Act receives the Royal
Assent.
3. Schedule 2
The first 1 January, 1 April, 1 July or
1 October to occur after 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 Schedules
7
Legislation that is specified in a Schedule to this Act is amended or
8
repealed as set out in the applicable items in the Schedule
9
concerned, and any other item in a Schedule to this Act has effect
10
according to its terms.
11
4 Independent review of operation of Schedule 1
12
(1) The Minister must cause an independent review to be conducted of
13
the operation of the amendments made by Schedule 1 to this Act.
14
(2) The review must:
15
(a) start as soon as practicable after the end of 12 months after
16
the commencement of the first regulations made for the
17
purposes of section 926B of the Corporations Act 2001 that
18
exempt a person or class of persons from subsection 911A(1)
19
of that Act to enable testing of particular financial services;
20
and
21
(b) be completed within 6 months.
22
No. , 2019
Treasury Laws Amendment (2018 Measures No. 2) Bill 2019
3
(3) The persons who conduct the review must give the Minister a
1
written report of the review.
2
(4) The Minister must cause copies of the report to be tabled in each
3
House of the Parliament within 15 sitting days of that House after
4
the report is given to the Minister.
5
Schedule 1 FinTech Sandbox Regulatory Licensing Exemptions
Part 1 Amendment of the Corporations Act 2001
4
Treasury Laws Amendment (2018 Measures No. 2) Bill 2019
No. , 2019
Schedule 1--FinTech Sandbox Regulatory
1
Licensing Exemptions
2
Part 1--Amendment of the Corporations Act 2001
3
Corporations Act 2001
4
1 Paragraph 911B(1)(e)
5
Repeal the paragraph, substitute:
6
(e) if the principal (rather than the provider) provided the
7
service, the principal would not need an Australian financial
8
services licence because the provision of the service would
9
be exempt under:
10
(i) subsection 911A(2); or
11
(ii) regulations made for the purposes of
12
subsection 926B(1).
13
2 At the end of section 926B
14
Add:
15
(3) An exemption that:
16
(a) is made for the purposes of paragraph (1)(a); and
17
(b) exempts a person or class of persons from
18
subsection 911A(1) to enable testing of particular financial
19
services;
20
may apply unconditionally or subject to specified conditions.
21
(4) A person to whom a condition specified in an exemption applies
22
must comply with the condition. The Court may order the person to
23
comply with the condition in a specified way. Only ASIC may
24
apply to the Court for the order.
25
(5) An exemption described in subsection (3) may empower ASIC to
26
make decisions relating to how the exemption starts or ceases to
27
apply to a person or class of persons.
28
FinTech Sandbox Regulatory Licensing Exemptions Schedule 1
Amendment of the National Consumer Credit Protection Act 2009 Part 2
No. , 2019
Treasury Laws Amendment (2018 Measures No. 2) Bill 2019
5
Part 2--Amendment of the National Consumer Credit
1
Protection Act 2009
2
National Consumer Credit Protection Act 2009
3
3 Paragraph 29(4)(d)
4
Omit "110(a)", substitute "110(1)(a)".
5
4 Section 110
6
Before "The", insert "(1)".
7
5 At the end of section 110
8
Add:
9
(2) An exemption that:
10
(a) is made for the purposes of paragraph (1)(a); and
11
(b) exempts a person or class of persons from subsection 29(1) to
12
enable testing of particular credit activities;
13
may apply unconditionally or subject to specified conditions.
14
(3) A person to whom a condition specified in an exemption applies
15
must comply with the condition. The Court may order the person to
16
comply with the condition in a specified way. Only ASIC may
17
apply to the Court for the order.
18
(4) An exemption described in subsection (2) may empower ASIC to
19
make decisions relating to how the exemption starts or ceases to
20
apply to a person or class of persons.
21
6 Subsection 160C(2)
22
Omit "110(a)", substitute "110(1)(a)".
23
7 Paragraph 160C(3)(c)
24
Omit "110(a)", substitute "110(1)(a)".
25
Schedule 2 Innovation measures
Part 1 Venture capital investments
6
Treasury Laws Amendment (2018 Measures No. 2) Bill 2019
No. , 2019
Schedule 2--Innovation measures
1
Part 1--Venture capital investments
2
Income Tax Assessment Act 1997
3
1 Subsection 118-408(2) (at the end of the definition of
4
valuation year capital gain)
5
Add:
6
Work out the capital gain based on what the
*
capital proceeds
7
would have been, and on other matters relating to the amount of
8
the gain being determined on a reasonable basis, if the CGT event
9
resulting in the gain had happened at the end of that period.
10
2 Subparagraph 118-428(1)(c)(ii)
11
After "other", insert "pre-owned".
12
3 Application of amendments
13
(1)
The amendment made by item 1 of this Part applies in relation to CGT
14
events happening on or after 1 July 2018.
15
(2)
The amendment made by item 2 of this Part applies in relation to
16
investments made on or after 1 July 2018.
17
Innovation measures Schedule 2
Early stage investor tax offsets Part 2
No. , 2019
Treasury Laws Amendment (2018 Measures No. 2) Bill 2019
7
Part 2--Early stage investor tax offsets
1
Income Tax Assessment Act 1997
2
4 Subsection 61-770(3)
3
Repeal the subsection, substitute:
4
(3) If, under the terms and conditions under which the trust or
5
partnership operates, the
*
member would be entitled to a fixed
6
proportion of any
*
capital gain from a
*
disposal:
7
(a) relating to the trust or partnership; and
8
(b) of investments made as a result of the contributions that gave
9
rise to the notional tax offset; and
10
(c) happening at the end of the income year to which the notional
11
tax offset relates;
12
the percentage determined under subsection (2) must be equivalent
13
to that fixed proportion, and a determination of any other
14
percentage has no effect.
15
5 After subparagraph 360-15(1)(a)(i)
16
Insert:
17
(ia) an
*
ESVCLP;
18
6 Paragraph 360-15(1)(f)
19
Repeal the paragraph, substitute:
20
(f) immediately after the issue of those shares, you do not hold
21
equity interests in the company, or in an entity
*
connected
22
with the company, that carry the right to:
23
(i) receive more than 30% of any distribution of income by
24
the company or the entity; or
25
(ii) receive more than 30% of any distribution of capital by
26
the company or the entity; or
27
(iii) exercise, or control the exercise of, more than 30% of
28
the total voting power in the company or the entity.
29
7 Subsection 360-15(2)
30
Repeal the subsection, substitute:
31
Schedule 2 Innovation measures
Part 2 Early stage investor tax offsets
8
Treasury Laws Amendment (2018 Measures No. 2) Bill 2019
No. , 2019
Members of trusts or partnerships
1
(2) A
*
member of a trust or partnership (other than a partnership that is
2
an
*
ESVCLP) at the end of an income year is entitled to a
*
tax
3
offset for the income year if:
4
(a) the trust or partnership would be entitled to a tax offset,
5
under this section, for the income year if the trust or
6
partnership were an individual; and
7
(b) the member is not a
*
widely held company or a
*
100%
8
subsidiary of a widely held company.
9
8 Subsection 360-25(1)
10
Repeal the subsection, substitute:
11
(1) If subsection 360-15(1) applies, the amount of your
*
tax offset is
12
20% of the sum of the following:
13
(a) an amount equal to any money received, or entitled to be
14
received, by the company referred to in
15
paragraph 360-15(1)(b) for the issue to you of the
*
shares as
16
described in that paragraph;
17
(b) an amount equal to the
*
market value of any
*
non-cash
18
benefit received, or entitled to be received, by the company
19
referred to in paragraph 360-15(1)(b) for the issue to you of
20
the shares as described in that paragraph, as at the time the
21
shares were issued to you.
22
9 After subsection 360-30(1)
23
Insert:
24
(1A) However, reduce the amount worked out under subsection (1) to
25
the extent necessary to ensure that the sum of the following does
26
not exceed $200,000:
27
(a) the sum of the
*
tax offsets under this Subdivision for the
28
income year for which the member and the member's
29
*
affiliates (if any) are entitled;
30
(b) the sum of the tax offsets under this Subdivision that the
31
member and the member's affiliates (if any) carry forward to
32
the income year.
33
Innovation measures Schedule 2
Early stage investor tax offsets Part 2
No. , 2019
Treasury Laws Amendment (2018 Measures No. 2) Bill 2019
9
10 Subsection 360-30(3)
1
Repeal the subsection, substitute:
2
(3) If, under the terms and conditions under which the trust or
3
partnership operates, the
*
member would be entitled to a fixed
4
proportion of any
*
capital gain from a
*
disposal:
5
(a) relating to the trust or partnership; and
6
(b) of the
*
shares that gave rise to the notional tax offset; and
7
(c) happening at the end of the income year to which the notional
8
tax offset relates;
9
the percentage determined under subsection (2) must be equivalent
10
to that fixed proportion, and a determination of any other
11
percentage has no effect.
12
11 Paragraph 360-35(b)
13
Omit all the words after "the sum of", substitute "the amounts worked
14
out under section 360-30 (disregarding any reductions under
15
subsection 360-30(1A)) for those tax offsets".
16
12 Subparagraph 360-40(1)(a)(ii)
17
After "those income years", insert "before the current year".
18
13 At the end of subsection 360-40(1)
19
Add:
20
; and (f) at the test time, the company is not a foreign company
21
(within the meaning of the Corporations Act 2001).
22
Note:
For the purposes of paragraph (e), one way a company can
23
demonstrate something is by engaging the services of another entity.
24
14 Application of amendments
25
The amendments made by this Part apply in relation to income years
26
commencing on or after 1 July 2018.
27
Schedule 2 Innovation measures
Part 3 Managed investment trusts
10
Treasury Laws Amendment (2018 Measures No. 2) Bill 2019
No. , 2019
Part 3--Managed investment trusts
1
Income Tax Assessment Act 1997
2
15 Subsection 275-10(4A)
3
Omit "a
*
VCLP or an
*
ESVCLP", substitute "an
*
AFOF, an
*
ESVCLP
4
or a
*
VCLP".
5
16 Paragraph 275-10(4A)(a)
6
Omit "VCLP or ESVCLP", substitute "AFOF, ESVCLP or VCLP".
7
17 Application of amendments
8
The amendments made by this Part apply in relation to income years
9
commencing on or after 1 July 2018.
10
Innovation measures Schedule 2
Public trading trusts Part 4
No. , 2019
Treasury Laws Amendment (2018 Measures No. 2) Bill 2019
11
Part 4--Public trading trusts
1
Income Tax Assessment Act 1936
2
18 At the end of section 102R
3
Add:
4
(5) In determining whether a unit trust is a public trading trust under
5
this section, disregard any interest that the trust has that is
6
disregarded under subsection 275-10(4A) of the Income Tax
7
Assessment Act 1997.
8
19 Application of amendment
9
The amendment made by this Part applies in relation to years of income
10
commencing on or after 1 July 2016.
11
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