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Treasury Laws Amendment (2019 Tax Integrity and Other Measures No. 1) Bill 2019

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2019

 

The Parliament of the

Commonwealth of Australia

 

THE SENATE

 

 

Treasury Laws Amendment (2019 Tax Integrity and Other Measures No. 1) Bill 2019

 

 

(1)     Schedule 3, item 3, page 12 (after line 13), at the end of section 26-102, add:

Exception—structures affected by natural disasters or other exceptional circumstances

             (6)  Subsection (1) does not stop you deducting a loss or outgoing relating to holding land if:

                     (a)  had an earlier time been the critical time (see paragraph (1)(b)), paragraph (1)(b) would not have applied to you for the land because of the existence at that earlier time of a substantial and permanent structure on the land; and

                     (b)  after that earlier time, paragraph (1)(b):

                              (i)  began to apply to you for the land wholly or mainly because of a circumstance affecting that structure; and

                             (ii)  continued to do so at the critical time; and

                     (c)  the circumstance was exceptional and beyond the reasonable control of you, and of all the entities referred to in paragraphs (2)(b), (c) and (d); and

                     (d)  the critical time happened before:

                              (i)  the third anniversary of the time paragraph (1)(b) began to apply to you for the land as described in subparagraph (b)(i) of this subsection; or

                             (ii)  such later time as the Commissioner allows.

             (7)  If subsection (6) applies to you and you deduct the loss or outgoing, you must keep written records of:

                     (a)  the circumstance; and

                     (b)  the circumstance’s effect on the affected structure;

until the fifth anniversary of the end of the income year in which you incurred the loss or outgoing.

Note:          There is an administrative penalty if you fail to keep these records (see section 288-25 in Schedule 1 to the Taxation Administration Act 1953 ).

Exception—land held by primary producers

             (8)  Subsection (1) does not stop you deducting a loss or outgoing relating to holding land if, at the critical time (see paragraph (1)(b)):

                     (a)  the land is under lease, hire or licence to another entity; and

                     (b)  you are, or an entity referred to in paragraph (2)(b), (c) or (d) is, carrying on a * primary production business; and

                     (c)  the land does not contain * residential premises; and

                     (d)  residential premises are not being constructed on the land.

Exception—land in use or available for use in carrying on a business

             (9)  Subsection (1) does not stop you deducting a loss or outgoing relating to holding land if, at the critical time (see paragraph (1)(b)):

                     (a)  the land is under lease, hire or licence to another entity as a result of a dealing at * arm’s length; and

                     (b)  the land is in use, or available for use, in carrying on a * business; and

                     (c)  the land does not contain * residential premises; and

                     (d)  residential premises are not being constructed on the land.

[exceptions]