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Wednesday, 29 June 1994
Page: 2223


Senator COOK (Minister for Industry, Science and Technology and Minister Assisting the Prime Minister for Science) —I table three supplementary explanatory memoranda relating to the government amendments to be moved to this bill.

  Amendments (by Senator Crowley)—by leave—proposed:

No.1—Clause 2, page 2, at end of clause, add the following subclause:

  "(7) Division 11 of Part 2 commences on 1 January 1995.".

No.2—At end of Part 2, page 65, add the following Division:

"Division 11—Net rental property loss

Family payment income test and parental means test definitions

  "42E. Section 10A of the Principal Act is amended:

  (a)by inserting the following definition in subsection (2):

`"net rental property loss" has the meaning given by subsection (15);';

(b)by adding at the end the following subsection:

Net rental property loss

`(15) The net rental property loss of a person for a tax year is:

    (a)if the expenses incurred by the person on rental property during that year exceed the person's gross rental property income for that year—the amount by which those expenses exceed that gross rental property income; or

  (b)if the expenses incurred by the person on rental property during that year do not exceed the person's gross rental property income for that year—nil.'.

Benefit Rate Calculator A

  "42F.(1) The Rate Calculator in section 1067 of the Principal Act is amended:

(a)by omitting from point 1067-G12 `taxable';

(b)by omitting Note 2 to point 1067-G12 and substituting the following Notes:

`Note 2:For "income" see point 1067-G23 below.

Note 2A:For "exempt spousal maintenance income" see section 23.';

(c)by omitting from point 1067-G13 `taxable';

(d)by omitting Note 2 to point 1067-G13 and substituting the following Notes:

`Note 2:For "income" see point 1067-G23 below.

Note 2A:For "exempt spousal maintenance income" see section 23.';

(e)by omitting from point 1067-G14 `taxable';

(f)by omitting Note 2 to point 1067-G14 and substituting the following Notes:

`Note 2:For "income" see point 1067-G23 below.

Note 2A:For "exempt spousal maintenance income" see section 23.';

(g)by inserting after point 1067-G22 the following point in Module G:

Income

`1067-G23. For the purposes of points 1067-G12, 1067-G13 and 1067-G14, a person's income for a particular tax year is the sum of:

(a)the person's taxable income for that year; and

(b)the person's net rental property loss for that year.

Note 1:For "taxable income" see subsection 23(1).

Note 2:For "net rental property loss" see subsection 10A(15).'.

"(2) The amendments made by subsection (1):

(a)apply to all payments that fall due on or after 1 January 1995; and

(b)apply to all net rental property losses whether incurred before, on or after 1 January 1995.

Family Payment Rate Calculator

  "42G.(1) The Rate Calculator in section 1069 of the Principal Act is amended:

(a)by inserting after point 1069-H2C the following point:

`1069-H2D. For the purposes of this Module, if a person is a member of a couple, the person's net rental property loss for a tax year includes the net rental property loss for that year of the person's partner.

Note:For "net rental property loss" see subsection 10A(15).';

(b)by omitting point 1069-H21 and substituting the following point:

Income

`1069-H21. For the purposes of points 1069-H13, 1069-H14, 1069-H15, 1069-

H16, 1069-H17 and 1069-H19, a person's income for a particular tax year is the sum of:

  (a)the person's taxable income for that year; and

  (b)the person's adjusted fringe benefits value for that year; and

  (c)the person's target foreign income for that year; and

  (d)the person's net rental property loss for that year.

Note 1:For "taxable income" see subsection 23(1).

Note 2:For "adjusted fringe benefits value" see points 1069-H24 and 1069-H25.

Note 3:For "target foreign income" see subsection 10A(2).

Note 4:For "net rental property loss" see subsection 10A(15).';

(c)by omitting Step 7 from the Method Statement in point 1069-H22 and substituting the following Steps:

`

Step 6A. Work out the person's net rental property loss for that tax year.

Note: For the treatment of net rental property loss of members of

a couple see point 1069-H2D.

Step 7. Add the amounts obtained in Steps 2, 5, 6 and 6A. The result is

called the person's adjusted income.

';

(d) by adding at the end of point 1069-H22 the following Note:

`Note 3:For "net rental property loss" see subsection 10A(15).';

(e) by omitting Step 7 from the Method Statement in point 1069-H27 and

substituting the following Steps:

`

Step 6A Work out the person's net rental property loss for that tax year.

Note: For the treatment of net rental property loss of members of

a couple see point 1069-H2D.

Step 7. Add the amounts obtained in Steps 2, 5, 6 and 6A. The result is

called the person's adjusted income.

';

(f) by adding at the end of point 1069-H27 the following notes:

`Note 2: For "target foreign income" see subsection 10A(2).

Note 3: For "net rental property loss" see subsection 10A(15).'.

"(2) The amendments made by subsection (1):

(a) apply to all payments that fall due on or after 1 January 1995; and

(b) apply to all net rental property losses whether incurred before, on

or after 1 January 1995.".