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Tax Laws Amendment (New Tax System for Managed Investment Trusts) Bill 2015
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Schedule 8 Application and transitional provisions etc.

   

1  Application provision

(1)       The amendments made by Schedules 1, 2, 3, 4, 6 » and 9 apply to assessments for income years starting on or after:

                     (a)  unless paragraph (b) applies—1 July 2016; or

                     (b)  if the assessment is in respect of a trust, and the trustee of the trust has made a choice under subitem (5)—1 July 2015.

(2)       The amendments made by Schedule 5 apply to assessments for income years starting on or after 1 July 2016.

(3)       Despite subitem (1), the amendments made by items 32, 33 and 34 in Schedule  « 6 » apply to income years starting on or after 1 July 2016.

(4)       The amendments made by Schedule 7 apply to income years starting on or after 1 July 2014.

(5)       The trustee of a trust may make a choice for the purposes of paragraph (1)(b) if the 2015-16 income year of the trust starts on or after 1 July 2015.

( « 6 » )       The choice cannot be revoked.

Income « Tax » (Transitional Provisions) Act 1997

2  At the end of Division 275

Add:

Subdivision 275-L Modification for non-arm’s length income

Table of sections

275-605    Trustee taxed on amount of non-arm’s length income of managed investment trust—not applicable for pre-introduction scheme where amount derived before start of 2018-19 income year

275-605   Trustee taxed on amount of non-arm’s length income of managed investment trust—not applicable for pre-introduction scheme where amount derived before start of 2018-19 income year

             (1)  This section applies if:

                     (a)  the requirements set out in paragraphs 275-610(1)(a), (b) and (c) of the Income « Tax » Assessment Act 1997 are satisfied in respect of an amount of non-arm’s length income of a managed investment trust in relation to an income year; and

                     (b)  the managed investment trust became a party to the scheme mentioned in paragraph 275-610(1)(a) of that Act before the day on which the « Bill » that became the « Tax » « Laws » « Amendment » (New « Tax » System for Managed Investment Trusts) Act 2015 was introduced into the House of Representatives; and

                     (c)  the amount was derived before the start of the 2018-19 income year.

             (2)  Subsections 275-605(2), (3) and (4) of that Act do not apply in respect of the amount.

3  At the end of Part 3-25

Add:

Division 276 Attribution managed investment trusts

Table of Subdivisions

276-A   Application

276-B    Starting income year

276-T    Becoming an AMIT: unders and overs

276-U   Becoming an AMIT: CGT treatment of payment by trustee of AMIT

Subdivision 276-A Application

Table of sections

276-5        Application of Division 276

276-5   Application of Division 276

                   Division 276 of the Income « Tax » Assessment Act 1997 as inserted in that Act by the « Tax » « Laws » « Amendment » (New « Tax » System for Managed Investment Trusts) Act 2015 (the amending Act ) applies as set out in subitem 1(1) of Schedule 8 to the amending Act.

Subdivision 276-B Starting income year

Table of sections

276-25      Starting income year

276-25   Starting income year

                   In this Division:

starting income year means the first income year starting on or after:

                     (a)  unless paragraph (b) or (c) applies—1 July 2017; or

                     (b)  if the trustee of the trust has made a choice for the purposes of paragraph 1(1)(b) of Schedule 8 to the « Tax » « Laws » « Amendment » (New « Tax » System for Managed Investment Trusts) Act 2015 —1 July 2015; or

                     (c)  if the trustee of the trust has made a choice for the purposes of subparagraph 276-10(1)(e)(i) in respect of the 2016-17 income year—1 July 2016.

Subdivision 276-T Becoming an AMIT: unders and overs

Table of sections

276-700    Application of Subdivision to MIT that becomes AMIT

276-705    Accounting for unders and overs for base years before becoming an AMIT

276-700   Application of Subdivision to MIT that becomes AMIT

                   This Subdivision applies if:

                     (a)  a managed investment trust becomes an AMIT for the starting income year; and

                     (b)  the trust existed in an earlier income year (the base year ); and

                     (c)  the trust is an AMIT for an income year (the discovery year ) that is the starting income year or a later income year.

276-705   Accounting for unders and overs for base years before becoming an AMIT

             (1)  This section applies if the trust has an under or over of a character in the discovery year relating to the base year.

             (2)  For the purposes of subsection (1):

                     (a)  assume that the trust is an AMIT for the base year and every later year before the starting income year; and

                     (b)  if, at a time, the trust sent its members distribution statements for an income year that is prior to the starting income year—assume that the trust sent those members AMMA statements for that income year at that time.

             (3)  For the purposes of Division 276 of the Income « Tax » Assessment Act 1997 , treat the under or over mentioned in subsection (1) as an under or over of the AMIT, in the discovery year relating to the base year, of the character mentioned in that subsection.

             (4)  If:

                     (a)  had the under or over mentioned in subsection (1) been discovered before the starting income year, this Act would have operated to produce a particular effect (the pre-AMIT scheme effect ) for the base year in relation to the amount or amounts reflected in the under or over; and

                     (b)  subsection (3) accounts for the pre-AMIT scheme effect;

treat this Act as not operating to produce the pre-AMIT scheme effect for the base year.

Note:          Subsection (3) continues to operate in relation to the under or over.

Subdivision 276-U Becoming an AMIT: CGT treatment of payment by trustee of AMIT

Table of sections

276-750    Payment by trustee on or after 1 July 2011—certain CGT provisions etc. apply for the purposes of working out non-assessable part for first income year of AMIT

276-755    Payment by trustee before 1 July 2011—limit on « amendment » of assessment

276-750   Payment by trustee on or after 1 July 2011—certain CGT provisions etc. apply for the purposes of working out non-assessable part for first income year of AMIT

             (1)  This section applies if:

                     (a)  a trust becomes an AMIT for an income year; and

                     (b)  the trustee of the trust made a payment to an entity at a time:

                              (i)  on or after 1 July 2011; and

                             (ii)  before the start of the income year mentioned in paragraph (a).

             (2)  Subsection (3) applies for the purpose of:

                     (a)  working out whether CGT event E4 happens because of the payment; and

                     (b)  working out the amount (if any) of the entity’s capital gain under subsection 104-70(4) of the Income « Tax » Assessment Act 1997 .

             (3)  For the purpose of working out the amount of the non-assessable part mentioned in paragraph 104-70(1)(b), treat the following provisions as being in operation at the time the payment was made:

                     (a)  sections 104-107F and 104-107G of the Income « Tax » Assessment Act 1997 ;

                     (b)  any other provision of that Act, to the extent that it relates to the operation of the provisions mentioned in paragraph (a).

             (4)  Subsection (3) does not apply to the extent (if any) that the entity, in the income « tax » return that it lodged for the income year in which the payment was made, included the amount of the payment in its assessable income for that income year.

             (5)  For the purposes of section 118-20 of the Income « Tax » Assessment Act 1997 , treat this section as being in Part 3-1 of that Act.

Note:          Section 118-20 deals with reducing capital gains if an amount is otherwise assessable.

276-755   Payment by trustee before 1 July 2011—limit on « amendment » of assessment

             (1)  This section applies if:

                     (a)  a trust becomes an AMIT for an income year; and

                     (b)  the trustee of the trust made a payment to an entity at a time before 1 July 2011.

             (2)  The Commissioner cannot amend the entity’s assessment for the income year in which the payment was made in a particular way if:

                     (a)  the effect of the « amendment » would be to increase the entity’s assessable income for that income year; and

                     (b)  the Commissioner could not amend the assessment in that way if the following provisions were in operation at the time the payment was made:

                              (i)  sections 104-107F, 104-107G and 104-107H of the Income « Tax » Assessment Act 1997 ;

                             (ii)  any other provision of that Act, to the extent that it relates to the operation of the provisions mentioned in subparagraph (i); and

                     (c)  the entity has not requested the Commissioner to amend the assessment in that way.

« Tax » « Laws » « Amendment » (2011 « Measures » « No » .   5) Act 2011

4  Subitem 51(5) of Schedule 2 (heading)

Repeal the heading, substitute:

MITs and the 2010-11, 2011-12, « 2012 » -13, 2013-14, 2014-15, 2015-16 and 2016-17 income years

5  Subitem 51(7) of Schedule 2

Repeal the subitem, substitute:

(7)       A choice mentioned in subitem ( « 6 » ):

                     (a)  can only be made before the end of 2 months after the later of:

                              (i)  the end of the income year in relation to which the choice is made; and

                             (ii)  the commencement of:

                                        (A)  if that income year is the 2010-11, 2011-12, « 2012 » -13 or 2013-14 income year—Schedule 2 to the « Tax » « Laws » « Amendment » (2011 « Measures » « No » .   5) Act 2011 ; or

                                        (B)  if that income year is the 2014-15, 2015-16 or 2016-17 income year—Schedule 8 to the « Tax » « Laws » « Amendment » (New « Tax » System for Managed Investment Trusts) Act 2015 ; and

                     (b)  can only be made in writing; and

                     (c)  can only be made in relation to the following income years:

                              (i)  the 2010-11 income year;

                             (ii)  the 2011-12 income year;

                            (iii)  the « 2012 -13 income year;

                            (iv)  the 2013-14 income year;

                             (v)  the 2014-15 income year;

                            (vi)  the 2015-16 income year;

                           (vii)  the 2016-17 income year.