Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Minerals Resource Rent Tax Repeal and Other Measures Bill 2013

Schedule 2 Loss carry back

Part 1 Repeals

Income Tax Assessment Act 1997

1  Division 160

Repeal the Division.

Income Tax (Transitional Provisions) Act 1997

2  Division 160

Repeal the Division.

Part 2 Consequential amendments

Income Tax Assessment Act 1936

3  Subsection 6(1) (definition of loss carry back tax offset )

Repeal the definition.

4  Subsection 92A(3)

Omit “or 160”.

5  Paragraph 177C(1)(baa)

Repeal the paragraph.

6  Paragraph 177C(1)(ea)

Repeal the paragraph.

7  Paragraph 177C(2)(ca)

Repeal the paragraph.

8  Subsection 177C(3)

Omit “, (ca)(i)”.

9  Paragraph 177C(3)(caa)

Repeal the paragraph.

10  Paragraph 177C(3)(fa)

Repeal the paragraph.

11  Paragraph 177CB(1)(ca)

Repeal the paragraph.

12  Paragraph 177F(1)(ca)

Repeal the paragraph.

13  Paragraph 177F(3)(ca)

Repeal the paragraph.

Income Tax Assessment Act 1997

14  Section 13-1 (table item headed “losses”)

Repeal the item.

15  Subsection 36-17(1) (note 1)

Omit “1”.

16  Subsection 36-17(1) (note 2)

Repeal the note.

17  Section 36-25 (table dealing with tax losses of corporate tax entities)

Omit:

 

See also Division 160 (loss carry back tax offset)

 

18  Section 36-25 (table dealing with tax losses of pooled development funds (PDFs), item 1)

Repeal the item, substitute:

1.

A company is a pooled development fund (PDF) at the end of an income year for which it has a tax loss: it can only deduct the loss while it is a PDF.

Section 195-5

19  Section 36-25 (table dealing with tax losses of VCLPs, ESVCLPs, AFOFs and VCMPs, item 1)

Repeal the item, substitute:

1.

A limited partnership that has a tax loss becomes a VCLP, an ESVCLP, an AFOF or a VCMP: it cannot deduct the loss while it is a VCLP, an ESVCLP, an AFOF or a VCMP.

Subdivision 195-B

20  Section 67-23 (table item 13A)

Repeal the item.

21  Paragraph 195-15(5)(b)

Omit “and”.

22  Paragraph 195-15(5)(c)

Repeal the paragraph.

23  Group heading before section 195-37

Repeal the heading.

24  Section 195-37

Repeal the section.

25  Section 195-72

Repeal the section.

26  Subparagraph 205-35(1)(b)(ii)

Omit “a * loss carry back tax offset, or”.

27  Subparagraph 205-35(1)(b)(ii)

Omit “(about R&D),”, substitute “(about R&D)”.

28  Paragraph 320-149(2)(aa)

Repeal the paragraph.

29  Subsection 830-65(3)

Omit “or 160”.

30  Paragraph 960-20(2)(b)

Omit “amount; or”, substitute “amount.”.

31  Paragraph 960-20(2)(c)

Repeal the paragraph.

32  Paragraph 960-20(4)(e)

Omit “forward; or”, substitute “forward.”.

33  Paragraph 960-20(4)(f)

Repeal the paragraph.

34  Subsection 995-1(1) (definition of carry back )

Repeal the definition.

35  Subsection 995-1(1) (definition of income tax liability )

Repeal the definition.

36  Subsection 995-1(1) (definition of interest in membership interests )

Repeal the definition.

37  Subsection 995-1(1) (definition of loss carry back choice )

Repeal the definition.

38  Subsection 995-1(1) (definition of loss carry back tax offset )

Repeal the definition.

39  Subsection 995-1(1) (definition of loss carry back tax offset component )

Repeal the definition.

40  Subsection 995-1(1) (definition of scheme for a disposition )

Repeal the definition.

Taxation Administration Act 1953

41  Section 45-340 in Schedule 1 (method statement, step 1, paragraph (dc))

Repeal the paragraph.

Part 3 Application, transitional and saving provisions

42  Application

The amendments made by this Schedule apply to assessments for the 2013-14 income year and later income years.

43  Making and amending assessments, and doing other things, in relation to past matters

(1)       Even though a part of an Act is repealed or amended by this Schedule, the repeal or amendment is disregarded for the purpose of doing any of the following under any Act or legislative instrument (within the meaning of the Legislative Instruments Act 2003 ):

                     (a)  making or amending an assessment (including under a provision that is itself repealed or amended);

                     (b)  exercising any right or power, performing any obligation or duty or doing any other thing (including under a provision that is itself repealed or amended);

in relation to any act done or omitted to be done, any state of affairs existing, or any period ending, before the repeal or amendment applies.

(2)       This item does not limit the operation of the Acts Interpretation Act 1901 .

Income Tax (Transitional Provisions) Act 1997

44  Before Subdivision 960-E

Insert:

Subdivision 960-B Utilisation of tax attributes

Table of sections

960-20      Utilisation—corporate loss carry back

960-20   Utilisation—corporate loss carry back

             (1)  For the purposes of subsection 960-20(2) of the Income Tax Assessment Act 1997 , a tax loss is utilised to the extent that it is carried back under former Division 160 of that Act (which provided for a corporate loss carry back tax offset for the 2012-13 income year).

             (2)  For the purposes of subsection 960-20(4) of that Act, net exempt income for an income year is utilised to the extent that, because of it, an amount was reduced under step 2 of the method statement in former subsection 160-15(2) of that Act (which was about calculating a loss carry back tax offset component).