2004-2005

 

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

 

THE SENATE

 

 

Tax Laws Amendment (2005 Measures No. 1) Bill 2005

 

 

Schedule of the amendments made by the Senate

 

 

 

 

(1)     Clause 2, page 1 (line 7) to page 2 (line 6), omit the clause, substitute:

2   Commencement

                   This Act commences on the day on which it receives the Royal Assent.

(2)     Schedule 3, item 3, page 6 (lines 18 to 22), omit the item.

(3)     Schedule 3, page 6 (after line 26), after item 4, insert:

4A  At the end of subsection 83-5(2)

Add:

               ; or (c)  a supply that is disregarded under paragraph 188-15(3)(b) or (c) or 188-20(3)(b) or (c) (which are about supplies of rights or options offshore).

(4)     Schedule 3, page 8 (after line 21), after item 16, insert:

16A  Section 151-5

Before “You are eligible”, insert “(1)”.

16B  At the end of section 151-5

Add:

             (2)  However, you are not eligible to make an * annual tax period election if the only reason you are not * required to be registered is because you disregarded supplies under paragraph 188-15(3)(b) or (c) or 188-20(3)(b) or (c) (which are about supplies of rights or options offshore).

16C  Subsection 188-15(3)

Repeal the subsection, substitute:

Supplies that are disregarded

             (3)  In working out your current annual turnover , disregard:

                     (a)  any supply that is not * connected with Australia; and

                     (b)  any supply that is connected with Australia because of paragraph 9-25(5)(c); and

                     (c)  any supply (other than a supply covered by paragraph (a) or (b)):

                              (i)  of a right or option to use * commercial accommodation in Australia; and

                             (ii)  that is not made in Australia; and

                            (iii)  that is made through an * enterprise that the supplier does not * carry on in Australia.

16D  Subsection 188-20(3)

Repeal the subsection, substitute:

Supplies that are disregarded

             (3)  In working out your projected annual turnover , disregard:

                     (a)  any supply that is not * connected with Australia; and

                     (b)  any supply that is connected with Australia because of paragraph 9-25(5)(c); and

                     (c)  any supply (other than a supply covered by paragraph (a) or (b)):

                              (i)  of a right or option to use * commercial accommodation in Australia; and

                             (ii)  that is not made in Australia; and

                            (iii)  that is made through an * enterprise that the supplier does not * carry on in Australia.

(5)     Schedule 3, item 17, page 8 (lines 22 to 25), omit the item, substitute:

17  Application provision

The amendments made by items 1 to 16D apply to supplies made on or after 1 October 2005.

18  Transitional provision

For the purposes of sections 188-15 and 188-20 of the A New Tax System (Goods and Services Tax) Act 1999 , in working out an enterprise’s current annual turnover, or projected annual turnover, at a time during July, August or September 2005, disregard a supply if:

                     (a)  the enterprise through which the supply is made is not carried on in Australia; and

                     (b)  the supply:

                              (i)  is a supply of a right or option to use commercial accommodation in Australia; and

                             (ii)  is not made in Australia.

(6)     Schedule 4, heading to item 5, page 11 (line 30), at the end of the heading, add “ of items 1 to 4 ”.

(7)     Schedule 4, item 5, page 11 (line 31), omit “this Schedule”, substitute “items 1 to 4”.

(8)     Schedule 4, page 11 (after line 32), at the end of the Schedule, add:

Taxation Administration Act 1953

6  Section 45-340 in Schedule 1 (method statement, step 1, after paragraph (a))

Insert:

7  Application of item 6

The amendment made by item 6 applies in relation to the calculation of an entity’s adjusted tax:

                     (a)  for a base year that is the first income year starting on or after 1 July 2004 or a later income year; and

                     (b)  only for the purposes of a PAYG instalment period that includes, or starts after, the day on which this Act receives the Royal Assent.

8  Section 45-375 in Schedule 1 (method statement, step 1, after paragraph (a))

Insert:

9  Application of item 8

The amendment made by item 8 applies in relation to the calculation of an entity’s adjusted assessed tax for a variation year that is the first income year starting on or after 1 July 2004 or a later income year.

 

 

 

 

 

HARRY EVANS

Clerk of the Senate

 

 

The Senate

23 June 2005