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Tax Laws Amendment (2011 Measures No. 9) Bill 2011

2010-2011-2012

 

The Parliament of the

Commonwealth of Australia

 

HOUSE OF REPRESENTATIVES

 

 

 

 

As passed by both Houses

 

 

 

 

 

 

 

 

 

Tax Laws Amendment (2011 Measures No. 9) Bill 2012

 

No.      , 2012

 

 

 

 

 

A Bill for an Act to amend the law relating to taxation and superannuation, and for other purposes

   

   



Contents

1............ Short title............................................................................................. 1

2............ Commencement................................................................................... 1

3............ Schedule(s)......................................................................................... 5

4............ Amendment of assessments................................................................ 5

Schedule 1—Form for portability of superannuation                                      6

Retirement Savings Accounts Act 1997                                                                    6

Superannuation Industry (Supervision) Act 1993                                                 9

Schedule 2—Capital gains tax and certain business restructures           12

Part 1—Share and interest sale facilities for foreign interest holders in a restructure       12

Income Tax Assessment Act 1997                                                                             12

Part 2—CGT demerger relief                                                                                   18

Income Tax Assessment Act 1997                                                                             18

Part 3—Roll-overs for change of incorporation                                              19

Division 1—Main amendments                                                                               19

Income Tax Assessment Act 1997                                                                             19

Division 2—Consequential amendments                                                               29

Income Tax Assessment Act 1997                                                                             29

Division 3—Application of amendments                                                               31

Income Tax (Transitional Provisions) Act 1997                                                   31

Schedule 3—GST financial supply provisions                                                     33

Part 1—Increasing financial acquisitions threshold                                      33

A New Tax System (Goods and Services Tax) Act 1999                                       33

Part 2—Treatment of borrowings                                                                          34

A New Tax System (Goods and Services Tax) Act 1999                                       34

Part 3—Hire purchase agreements                                                                         35

A New Tax System (Goods and Services Tax) Act 1999                                       35

Schedule 4—New residential premises                                                                     37

Part 1—Amendments                                                                                                   37

A New Tax System (Goods and Services Tax) Act 1999                                       37

Part 2—Application of amendments                                                                    40

Schedule 5—Deductible gift recipients                                                                     42

Income Tax Assessment Act 1997                                                                             42

Schedule 6—Miscellaneous amendments                                                                43

Part 1—Corrections to cross-references                                                              43

Division 1—Income Tax Assessment Act 1936                                                   43

Division 2—Income Tax Assessment Act 1997                                                   43

Division 3—Citizenship                                                                                             43

Income Tax Assessment Act 1997                                                                             43

Tax Laws Amendment (2006 Measures No. 3) Act 2006                                     44

Division 4—Tax-related liabilities                                                                            44

Income Tax Assessment Act 1997                                                                             44

Part 2—Repeal of references to Cultural Bequests Program and redundant subsection numbers              45

Division 1—Cultural Bequests Program                                                                 45

Income Tax Assessment Act 1997                                                                             45

Income Tax (Transitional Provisions) Act 1997                                                   46

Division 2—Redundant subsection numbers                                                        46

A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999   46

Superannuation Industry (Supervision) Act 1993                                               46

Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Act 1991   46

Part 3—List of tax offsets                                                                                         47

Income Tax Assessment Act 1997                                                                             47

Part 4—Taxation Administration Act 1953                                                      48

Part 5—Foreign superannuation funds                                                                49

Division 1—Pensions and annuities                                                                        49

Income Tax Assessment Act 1936                                                                             49

Division 2—Superannuation lump sums                                                                49

Income Tax (Transitional Provisions) Act 1997                                                   49

Part 6—Asterisks                                                                                                            51

Division 1—A New Tax System (Wine Equalisation Tax) Act 1999                51

Division 2—Trading stock and revenue assets                                                      51

Income Tax Assessment Act 1997                                                                             51

Division 3—Other amendments                                                                               53

Income Tax Assessment Act 1997                                                                             53

Part 7—References to Acts                                                                                       55

A New Tax System (Goods and Services Tax) Act 1999                                       55

Income Tax Assessment Act 1997                                                                             55

Taxation Administration Act 1953                                                                          56

Part 8—Extensions of time                                                                                       58

Income Tax Assessment Act 1997                                                                             58

Part 9—Cessation of membership of GST groups etc.                                59

A New Tax System (Goods and Services Tax) Act 1999                                       59

Part 10—Small business participation percentage                                         60

Division 1—Companies                                                                                             60

Income Tax Assessment Act 1997                                                                             60

Division 2—Discretionary trusts                                                                               60

Income Tax Assessment Act 1997                                                                             60

Part 11—Exempt income                                                                                           63

Division 1—Repeal of spent provisions                                                                  63

Income Tax Assessment Act 1997                                                                             63

Division 2—Lists of exempt income                                                                       65

Income Tax Assessment Act 1997                                                                             65

Division 3—Australian Victim of Terrorism Overseas Payment                        71

Income Tax Assessment Act 1997                                                                             71

Division 4—Amendments contingent on the Clean Energy (Household Assistance Amendments) Act 2011               71

Clean Energy (Household Assistance Amendments) Act 2011                          71

Income Tax Assessment Act 1997                                                                             72

Part 12—Complying superannuation/FHSA life insurance policies     73

Division 1—Virtual PST life insurance policies                                                     73

Income Tax (Transitional Provisions) Act 1997                                                   73

Division 2—Complying superannuation/FHSA life insurance policies            73

Income Tax (Transitional Provisions) Act 1997                                                   73

Part 13—Applications for tax file numbers                                                      75

Income Tax Assessment Act 1936                                                                             75

Part 14—Taxable professional income                                                                76

Income Tax Assessment Act 1997                                                                             76

Part 15—Consolidated groups                                                                                77

Division 1—Partnerships                                                                                           77

Income Tax Assessment Act 1997                                                                             77

Division 2—Amendments applying from 1 July 2002                                        77

Income Tax Assessment Act 1997                                                                             77

Part 16—Demutualisation                                                                                          78

Income Tax Assessment Act 1997                                                                             78

Part 17—Mining and quarrying definitions                                                      79

Income Tax Assessment Act 1997                                                                             79

Part 18—BAS amount                                                                                                 81

Income Tax Assessment Act 1997                                                                             81

Part 19—Corporate tax rate                                                                                      82

Income Tax Assessment Act 1997                                                                             82

Taxation Administration Act 1953                                                                          82

Part 20—UK wounds and disability pension                                                  83

Income Tax Assessment Act 1997                                                                             83

Part 21—Repeal of redundant provisions                                                          84

A New Tax System (Goods and Services Tax) Act 1999                                       84

Income Tax Rates Act 1986                                                                                       84

Taxation Administration Act 1953                                                                          84

Part 22—Limited amendment period                                                                  85

Income Tax Assessment Act 1936                                                                             85

Part 23—Definition of managed investment trust                                        88

Tax Laws Amendment (2010 Measures No. 3) Act 2010                                     88

Part 24—Equivalent foreign collective investment vehicles                    89

Taxation Administration Act 1953                                                                          89

Part 25—Self managed superannuation funds                                                90

Division 1—Definition of self managed superannuation fund                          90

Superannuation Industry (Supervision) Act 1993                                               90

Division 2—References to self managed superannuation funds                       92

Income Tax Assessment Act 1997                                                                             92

Superannuation Industry (Supervision) Act 1993                                               92

Taxation Administration Act 1953                                                                          93

Part 26—Untaxed plan cap                                                                                       95

Income Tax Assessment Act 1997                                                                             95

Part 27—Correction of typographical errors                                                    96

Income Tax Assessment Act 1997                                                                             96

Taxation Administration Act 1953                                                                          96

Part 28—Foreign income tax offset, Medicare levy and surcharge      97

Income Tax Assessment Act 1936                                                                             97

Income Tax Assessment Act 1997                                                                             99

Taxation Administration Act 1953                                                                        100

Taxation (Interest on Overpayments and Early Payments) Act 1983             101

Part 29—Adjusted tax                                                                                               102

Taxation Administration Act 1953                                                                        102

Part 30—Section 109CA of the Income Tax Assessment Act 1936 103

Income Tax Assessment Act 1936                                                                           103

Part 31—Franking debits                                                                                         104

Income Tax Assessment Act 1936                                                                           104

 



A Bill for an Act to amend the law relating to taxation and superannuation, and for other purposes

The Parliament of Australia enacts:

1   Short title

                   This Act may be cited as the Tax Laws Amendment (2011 Measures No. 9) Act 2012 .

2   Commencement

             (1)  Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

1.  Sections 1 to 4 and anything in this Act not elsewhere covered by this table

The day this Act receives the Royal Assent.

 

2.  Schedule  1

The day after this Act receives the Royal Assent.

 

3.  Schedule 2

The day this Act receives the Royal Assent.

 

4.  Schedule 3

1 July 2012.

1 July 2012

5.  Schedules 4 and 5

The day this Act receives the Royal Assent.

 

 

6.  Schedule 6, Part 1, Divisions 1 and 2

The day this Act receives the Royal Assent.

 

7.  Schedule 6, item 7

At the same time as item 42 of Schedule 1 to the Australian Citizenship (Transitionals and Consequentials) Act 2007 commences.

1 July 2007

8.  Schedule 6, items 8 and 9

Immediately after the commencement of section 2 of the Tax Laws Amendment (2006 Measures No. 3) Act 2006 .

30 June 2006

9.  Schedule 6, Part 1, Division 4

At the same time as item 29 of Schedule 1 to the Tax Laws Amendment (Transfer of Provisions) Act 2010 commences.

1 July 2010

10.  Schedule 6, Parts 2 and 3

The day this Act receives the Royal Assent.

 

11.  Schedule 6, Part 4

Immediately after the commencement of item 1 of Schedule 1 to the A New Tax System (Pay As You Go) Act 1999 .

22 December 1999

12.  Schedule 6, Part 5, Division 1

Immediately after the commencement of item 140 of Schedule 1 to the Superannuation Legislation Amendment (Simplification) Act 2007 .

15 March 2007

13.  Schedule 6, Part 5, Division 2

The day this Act receives the Royal Assent.

 

14.  Schedule 6, Parts 6 to 8

The day this Act receives the Royal Assent.

 

15.  Schedule 6, Part 9

The day after this Act receives the Royal Assent.

 

16.  Schedule 6, Part 10, Division 1

The day after this Act receives the Royal Assent.

 

17.  Schedule 6, Part 10, Division 2

Immediately after the commencement of the provision(s) covered by table item 16.

 

18.  Schedule 6, Part 11, Division 1

The day this Act receives the Royal Assent.

 

19.  Schedule 6, Part 11, Division 2

Immediately after the commencement of the provision(s) covered by table item 18.

 

20.  Schedule 6, Part 11, Division 3

The later of:

(a) immediately after the commencement of the provision(s) covered by table item 19; and

(b) the commencement of item 17 of Schedule 1 to the Social Security Amendment (Supporting Australian Victims of Terrorism Overseas) Act 2012 .

However, the provision(s) do not commence at all if the event mentioned in paragraph (b) does not occur.

 

21.  Schedule 6, item 144

Immediately after the commencement of item 16 of Schedule 10 to the Clean Energy (Household Assistance Amendments) Act 2011 .

However, the provision(s) do not commence at all if that item 16 commences before or at the same time as the provision(s) covered by table item 18.

 

22.  Schedule 6, item 145

Immediately after the commencement of item 2 of Schedule 10 to the Clean Energy (Household Assistance Amendments) Act 2011 .

14 May 2012

23.  Schedule 6, items 146 to 148

Immediately after the commencement of the provision(s) covered by table item 19.

However, the provision(s) do not commence at all if item 2 of Schedule 10 to the Clean Energy (Household Assistance Amendments) Act 2011 does not commence before that time.

 

24.  Schedule 6, Part 12, Division 1

The day this Act receives the Royal Assent.

 

25.  Schedule 6, Part 12, Division 2

Immediately after the commencement of the provision(s) covered by table item 24.

 

26.  Schedule 6, Part 13

The day after this Act receives the Royal Assent.

 

27.  Schedule 6, Parts 14 to 18

The day this Act receives the Royal Assent.

 

28.  Schedule 6, item 179

At the same time as item 169 of Schedule 3 to the Tax Laws Amendment (2008 Measures No. 4) Act 2008 commences.

3 October 2008

29.  Schedule 6, item 180

Immediately after the commencement of item 115 of Schedule 5 to the Tax Laws Amendment (2010 Measures No. 1) Act 2010 .

3 June 2010

30.  Schedule 6, items 181 and 182

At the same time as item 169 of Schedule 3 to the Tax Laws Amendment (2008 Measures No. 4) Act 2008 commences.

3 October 2008

31.  Schedule 6, Parts 20 to 31

The day this Act receives the Royal Assent.

 

Note:          This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

             (2)  Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3   Schedule(s)

                   Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

4   Amendment of assessments

             (1)  Section 170 of the Income Tax Assessment Act 1936 does not prevent the amendment of an assessment if:

                     (a)  the assessment was made before the commencement of Part 8 of Schedule 6 to this Act; and

                     (b)  the amendment is made within 2 years after that commencement; and

                     (c)  the amendment is made for the purpose of giving effect to that Part.

             (2)  Section 170 of the Income Tax Assessment Act 1936 does not prevent the amendment of an assessment if:

                     (a)  the assessment was made before the commencement of Division 1 of Part 10 of Schedule 6 to this Act; and

                     (b)  the amendment is made within 2 years after that commencement; and

                     (c)  the amendment is made for the purpose of giving effect to that Division.

             (3)  Section 170 of the Income Tax Assessment Act 1936 does not prevent the amendment of an assessment if:

                     (a)  the assessment was made before the commencement of Division 2 of Part 10 of Schedule 6 to this Act; and

                     (b)  the amendment is made within 2 years after that commencement; and

                     (c)  the amendment is made for the purpose of giving effect to that Division.