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Thursday, 21 June 2001
Page: 28353


Mr HOCKEY (Minister for Financial Services and Regulation) (5:24 PM) —by leave—I present the explanatory memorandum to the New Business Tax System (Capital Allowances) Bill 2001. For the clarification of the House, I also present the explanatory memorandum to the New Business Tax System (Simplified Tax System) Bill 2000. The amendments I am about to move relate to schedule 1 of the bill, which provides for the rules to implement the uniform capital allowance system. I move government amendments Nos 1 to 15:

(1) Schedule 1, item 1, page 18 (line 21), omit paragraph (a), substitute:

(a) is mentioned in an item in the table in subsection 40-95(7) (except item 5, 7 or 8); and

(2) Schedule 1, item 1, page 20 (line 19), omit “Note”, substitute “Note 1”.

(3) Schedule 1, item 1, page 20 (after line 21), insert:

Note 2: The opening adjustable value of a depreciating asset for which a balancing adjustment event occurs because you still hold the asset and you expect not to use it is affected by subsection 40-285(4).

(4) Schedule 1, item 1, page 23 (table item 5), after “25 years”, insert “from when you acquire the copyright”.

(5) Schedule 1, item 1, page 23 (table item 7), after “25 years”, insert “from when you become the licensee”.

(6) Schedule 1, item 1, page 31 (table item 3), omit “and you start to use it again”, substitute “and you continue to hold it”.

(7) Schedule 1, item 1, page 31 (table item 4), omit “and you start to use it”, substitute “and you continue to hold it”.

(8) Schedule 1, item 1, page 39 (line 28), after “40-180(2).”, insert “Instead, the asset's *opening adjustable value for the income year (the later year) after the one in which the *balancing adjustment event occurred is that cost plus any amounts included in the second element of that cost after the event occurred and before the start of the later year.”.

(9) Schedule 1, item 1, page 39 (line 30), omit “start using”, substitute “still hold”.

(10) Schedule 1, item 1, page 41 (lines 7 to 9), omit paragraphs (b) and (c), substitute:

(b) you stop using it, or having it *installed ready for use, for any purpose and you expect never to use it, or have it installed ready for use, again; or

(c) you have not used it and:

(i) if you have had it installed ready for use—you stop having it so installed; and

(ii) you decide never to use it.

(11) Schedule 1, item 1, page 42 (table item 1), after “*depreciating asset”, insert “, or having it *installed ready for use,”.

(12) Schedule 1, item 1, page 42 (table item 1), after “stopped using it”, insert “or having it *installed ready for use”.

(13) Schedule 1, item 1, page 54 (line 18), omit “Note”, substitute “Note 1”.

(14) Schedule 1, item 1, page 54 (after line 18), insert:

Note 2: If you are an STS taxpayer for the income year, you must deduct amounts for your depreciating assets under Subdivision 328-D unless deductions for particular assets are specifically excluded by that Subdivision.

(15) Schedule 1, item 1, page 54 (lines 19 to 21), omit subsection (2).

Amendments ageed to.

Bill, as amended, agreed to.