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Tax Laws Amendment (2009 Measures No. 2) Bill 2009

Schedule 4 National Urban Water and Desalination Plan

Part 1 Main amendments

Income Tax Assessment Act 1936

1  Subsection 73I(4) (note)

Omit “section 67-25”, substitute “section 67-23”.

Income Tax Assessment Act 1997

2  Section 13-1 (after table item headed “unit trusts”)

Insert:

water

 

urban water tax offset...............................................................

Subdivision 402-W

3  After section 67-20

Insert:

67-23   Refundable tax offsets

                   The following * tax offsets are subject to the refundable tax offset rules:

 

Refundable tax offsets

Item

Subject matter

Tax offset

5

private health insurance

private health insurance tax offsets under Subdivision 61-G, other than those arising under subsection 61-205(2)

10

children

first child tax offsets under Subdivision 61-I

15

no-TFN contributions income

the * tax offset available under Subdivision 295-J

20

films

the * tax offsets available under Division 376

25

National Urban Water and Desalination Plan

urban water tax offset under Subdivision 402-W

30

life insurance company’s subsidiary joining consolidated group

the * tax offset available under subsection 713-545(5)

35

research and development

the * tax offset available under section 73I of the Income Tax Assessment Act 1936

Note 1:       Subsection 61-205(2) of this Act deals with tax offsets for trustees who are assessed and liable to pay tax under section 98 of the Income Tax Assessment Act 1936 .

Note 2:       For the tax offsets available under Division 207 and Subdivision 210-H (franked distributions), see section 67-25.

4  Section 67-25 (heading)

Repeal the heading, substitute:

67-25   Refundable tax offsets—franked distributions

5  Subsection 67-25(1) (heading)

Repeal the heading.

6  Subsections 67-25(2) to (6)

Repeal the subsections.

7  Subsection 376-10(1) (note)

Omit “subsection 67-25(2A)”, substitute “section 67-23”.

8  Subsection 376-35(1) (note)

Omit “subsection 67-25(2A)”, substitute “section 67-23”.

9  Subsection 376-55(1) (note)

Omit “subsection 67-25(2A)”, substitute “section 67-23”.

10  After Division 396

Insert:

Division 402 Environment protection expenditure

Table of Subdivisions

             Guide to Division 402

402-W   Urban water tax offset

Guide to Division 402

402-1   What this Division is about

This Division provides for certain tax measures in relation to environment protection.

Subdivision 402-W Urban water tax offset

Guide to Subdivision 402-W

402-750   What this Subdivision is about

A company may get a refundable tax offset under the National Urban Water and Desalination Plan for a project that the Water Minister certifies as being eligible for the tax offset.

The amount of the urban water tax offset is specified in the certificate.

The urban water tax offset is only available for the income years 2009-10 to 2012-13.

                   Note:             This Subdivision will be repealed on 1 July 2014: see Part 2 of Schedule 4 to the Tax Laws Amendment (2009 Measures No. 2) Act 2009 .

Table of sections

402-755    Entitlement to urban water tax offset

402-760    Certificates

402-765    Amount of urban water tax offset

402-770    Revoking certificates

402-775    AAT review

402-780    Guidelines

402-755   Entitlement to urban water tax offset

             (1)  A company is entitled to a * tax offset for a project for an income year if the * Water Minister certifies under section 402-760 that the project is eligible for the tax offset for the year.

             (2)  The amount of the * tax offset is the amount specified in the certificate.

Note:          The tax offset is subject to the refundable tax offset rules: see section 67-23.

402-760   Certificates

Issuing certificates

             (1)  The * Water Minister may certify, in writing, to a company that a project is eligible for the urban water tax offset for an income year, if:

                     (a)  the eligible up-front capital costs of the project (within the meaning given by the guidelines made under section 402-780) are:

                              (i)  in the case of a stormwater harvesting project—$4 million or more; or

                             (ii)  in any other case—$30 million or more; and

                     (b)  the other requirements specified in those guidelines are met.

             (2)  The * Water Minister may only issue certificates for the following income years:

                     (a)  the 2009-10 income year;

                     (b)  the 2010-11 income year;

                     (c)  the 2011-12 income year;

                     (d)  the 2012-13 income year.

             (3)  In deciding whether to issue a certificate, the * Water Minister must comply with the guidelines made under section 402-780.

             (4)  If the * Water Minister issues a certificate under this section, he or she must, within 30 days, give a copy to the Commissioner.

Refusal to issue certificates

             (5)  If the * Water Minister refuses to issue a certificate to a company under this section, he or she must, within 30 days, give written notice of the refusal to the company.

             (6)  The notice must explain that the company may apply to the * AAT for review of the * Water Minister’s refusal to issue a certificate to the company (see section 402-775).

402-765   Amount of urban water tax offset

             (1)  A certificate issued under section 402-760 must specify the amount of the * tax offset.

             (2)  In specifying an amount, the * Water Minister must comply with the guidelines made under section 402-780.

             (3)  The total of the amounts specified in certificates issued to a company for a stormwater harvesting project for one or more income years:

                     (a)  must not exceed 50% of the eligible up-front capital costs of the project (within the meaning given by the guidelines made under section 402-780); and

                     (b)  must not exceed $20 million.

             (4)  The total of the amounts specified in certificates issued to a company for a project (other than a stormwater harvesting project) for one or more income years:

                     (a)  must not exceed 10% of the eligible up-front capital costs of the project (within the meaning given by the guidelines made under section 402-780); and

                     (b)  must not exceed $100 million.

             (5)  A certificate issued to a company under section 402-760 must explain that the company may apply to the * AAT for review of the amount specified in the certificate (see section 402-775).

402-770   Revoking certificates

Revoking certificates

             (1)  The * Water Minister may revoke a certificate issued to a company under section 402-760.

             (2)  However, the * Water Minister may only do so in the circumstances provided for in the guidelines made under section 402-780.

             (3)  If the * Water Minister revokes the certificate, he or she must, within 30 days, give to the company and to the Commissioner:

                     (a)  written notice of the revocation; and

                     (b)  written reasons for the decision to revoke the certificate.

             (4)  The notice given to the company must explain that the company may apply to the * AAT for review of the * Water Minister’s revocation of the certificate (see section 402-775).

Revoked certificates taken never to have been issued

             (5)  If the * Water Minister revokes a certificate under this section, the certificate is taken, for the purposes of this Subdivision, never to have been issued.

             (6)  Section 170 of the Income Tax Assessment Act 1936 does not prevent the amendment of an assessment for the purpose of giving effect to this Subdivision for an income year if:

                     (a)  a certificate issued to a company is revoked under this section after the time the company lodged its * income tax return for the income year; and

                     (b)  the amendment is made at any time during the period of 4 years starting immediately after the revocation of the certificate.

Note:          Section 170 of the Income Tax Assessment Act 1936 specifies the usual period within which assessments may be amended.

Certificates cannot be varied

             (7)  A certificate issued under section 402-760 cannot be varied.

402-775   AAT review

                   A company may apply to the * AAT for review of a decision of the * Water Minister under this Subdivision:

                     (a)  to refuse to issue a certificate to the company; or

                     (b)  to specify a particular amount in a certificate issued to the company; or

                     (c)  to revoke a certificate issued to the company.

402-780   Guidelines

             (1)  The * Water Minister must, by legislative instrument, make guidelines about issuing and revoking certificates under this Subdivision.

             (2)  Despite subsection 14(2) of the Legislative Instruments Act 2003 , the guidelines may make provision in relation to a matter by applying, adopting or incorporating any matter contained in an instrument or other writing as in force or existing from time to time if:

                     (a)  the instrument or other writing is issued by the * Water Minister or by the * Water Department; and

                     (b)  the instrument or other writing, as in force or existing from time to time, is publicly available.

             (3)  A legislative instrument made under subsection (1) does not take effect before the end of the period in which it could be disallowed in either House of the Parliament.

11  Subsection 995-1(1)

Insert:

Water Department means the Department that:

                     (a)  deals with matters arising under section 1 of the Water Act 2007 ; and

                     (b)  is administered by the * Water Minister.

12  Subsection 995-1(1)

Insert:

Water Minister means the Minister administering section 1 of the Water Act 2007 .

Taxation (Interest on Overpayments and Early Payments) Act 1983

13  Subsection 3(1) (note at the end of the definition of income tax crediting amount )

Omit “Section 67-25”, substitute “Division 67”.

14  Subsection 8E(1) (note)

Omit “Section 67-25”, substitute “Division 67”.

15  Subsection 8G(1) (note)

Omit “Section 67-25”, substitute “Division 67”.



 

Part 2 Sunsetting on 1 July 2014

Income Tax Assessment Act 1997

16  Section 13-1 (table item headed “water”)

Repeal the item.

17  Section 67-23 (table item 25)

Repeal the item.

18  Subdivision 402-W

Repeal the Subdivision.

19  Transitional—revoking certificates

Revoking certificates

(1)       Subject to subitem (3) and despite the repeal of section 402-770 of the Income Tax Assessment Act 1997 by this Part, that section continues to apply, after the commencement of this Part, to a certificate issued under former section 402-760 of that Act until the end of the period of 10 years starting on the day the certificate was issued.

(2)       For the purposes of subitem (1), a reference in section 402-770 of the Income Tax Assessment Act 1997 to guidelines made under section 402-780 of that Act is taken, from the commencement of this Part, to be a reference to those guidelines as in force immediately before that commencement.

(3)       Despite the repeal of subsection 402-770(6) of the Income Tax Assessment Act 1997 by this Part, that subsection continues to apply, after the commencement of this Part, in relation to the revocation of a certificate occurring before or after that commencement.

AAT review

(4)       Despite the repeal of section 402-775 of the Income Tax Assessment Act 1997 by this Part, that section continues to apply, after the commencement of this Part, in relation to a decision to revoke a certificate made before or after that commencement.