TAX LAWS AMENDMENT (2010 MEASURES NO. 2) BILL 2010

Order of the day read for the adjourned debate on the motion of the Parliamentary Secretary for Social Inclusion (Senator Stephens)—That this bill be now read a second time.

Debate resumed.

Question put and passed.

Bill read a second time.

The Senate resolved itself into committee for the consideration of the bill.

In the committee

Bill taken as a whole by leave.

Explanatory memorandum: The Special Minister of State (Senator Ludwig) tabled a supplementary explanatory memorandum relating to the government amendments to be moved to the bill.

On the motion of Senator Ludwig the following amendments, taken together by leave, were agreed to:

 Schedule 1, item 13, page 9 (after line 10), after subsection 109CA(7), insert:

  (7A) Subsection (1) does not apply to the provision of a dwelling to the entity if:

 (a) the dwelling is a flat or home unit that is part of a complex of 2 or more flats or home units; and

 (b) the provider of the dwelling is a company that owns a legal or equitable interest in the land on which the complex is erected; and

 (c) there is more than one share in the company, and each share (whether singly or as part of a parcel of shares) gives the relevant shareholder the right to occupy a flat or home unit in the complex; and

 (d) each flat or home unit in the complex is covered by a share, or a parcel of shares, in the company; and

 (e) the dwelling is provided to the entity because a shareholder holds such a share, or parcel of shares; and

 (f) the company does not have legal or equitable interests in any assets other than legal or equitable interests in:

 (i) the complex, and the land on which it is erected; and

 (ii) any related land and buildings; and

 (iii) any related plant, machinery, equipment, furniture or fittings; and

 (iv) any assets relating to the matters mentioned in paragraph (g); and

 (g) the assessable income of the company is derived predominantly from:

 (i) managing and maintaining the complex (including the assets mentioned in subparagraphs (f)(i), (ii) and (iii)); and

 (ii) interest and dividends relating to income derived from managing and maintaining the complex (including the assets mentioned in those subparagraphs).

  (7B) Subsection (7A) does not apply in a case to which Subdivision E (about interposed entities) applies, if the company mentioned in that subsection is interposed between:

 (a) a private company; and

 (b) a shareholder, or an associate of a shareholder, of the private company.

 Schedule 1, item 13, page 9 (lines 12 and 13), omit "subsections (6) and (7)", substitute "subsections (6) to (7A)".

Bill, as amended, agreed to.

Bill to be reported with amendments.

The Acting Deputy President (Senator Hurley) resumed the chair and the Temporary Chair of Committees reported accordingly.

On the motion of Senator Ludwig the report from the committee was adopted and the bill read a third time.