Schedule 4—Miscellaneous amendments

  

A New Tax System (Indirect Tax Administration) Act 1999

1  Item 1 of Schedule 1

Repeal the item, substitute:

1  Subsection 8AAB(5) (after table item 17)

Insert:

 

17AA

40

Taxation Administration Act 1953

A New Tax System (Pay As You Go) Act 1999

2  Subitem 3(1) of Schedule 1

After “Division 12”, insert “(except section 12‑190)”.

3  After subitem 3(1) of Schedule 1

Insert:

(1A)     Section 12‑190 in Schedule 1 to the Taxation Administration Act 1953 applies to a payment made on or after 1 July 2000, but only if some or all of the supply is made on or after that day. (When a supply is made is determined for the purposes of this subitem in the same way as for the purposes of the A New Tax System (Goods and Services Tax Transition) Act 1999.)

Income Tax Assessment Act 1936

4  Subsection 202DH(1)

Omit all the words after “to have”, substitute “made a TFN declaration in relation to the trustee that has effect under Division 3.”.

5  Application

The amendment made by item 4 applies to a person who quotes his or her tax file number before, at or after the item’s commencement.

6  Section 202DI

Omit all the words after “to have”, substitute “made a TFN declaration in relation to the provider of the RSA that has effect under Division 3.”.

Note:       The heading to section 202DI is altered by inserting “of” after “taxation”.

7  Application

The amendment made by item 6 applies to a person who quotes his or her tax file number before, at or after the item’s commencement.

8  Subsection 202DJ(1)

Omit “has quoted his or her tax file number as mentioned in subregulation 98(8) or regulation 100 of the Income Tax Regulations,”, substitute “has made a TFN declaration in relation to the trustee of the entity, scheme or fund, or the RSA provider, that states his or her tax file number, and has effect under Division 3 (except a declaration that includes a statement mentioned in subsection 202CB(2)),”.

9  Saving

The amendment made by item 8 applies to a person who, immediately before that item’s commencement, is taken to have quoted his or her tax file number to a trustee or an RSA provider because of subsection 202DJ(1) of the Income Tax Assessment Act 1936, as if that person had made a TFN declaration in relation to the trustee or the RSA provider as mentioned in that subsection as amended by that item.

10  Subsection 221AZK(2)

After “221AZKC”, insert “, 221AZKEA”.

11  Before section 221AZKE

Insert:

221AZKEA  Effect on sections 221AZKB and 221AZKC if assessment is amended

                   If an instalment taxpayer’s assessment for the 1999‑2000 year of income is amended on one or more occasions, sections 221AZKB and 221AZKC apply, and are taken always to have applied, as if the taxpayer’s assessed tax for that year had always been the total of:

                     (a)  the tax payable for that year; and

                     (b)  the amount of interest (if any) payable under section 102AAM for that year;

as shown in the notice of the taxpayer’s latest assessment for that year.

Note:          This may affect how much of the final instalment can be deferred, and the number and amounts of quarterly payments by which the taxpayer must pay off the deferred amount.

12  At the end of section 221AZKE

Add:

             (2)  Subsection (1) also has effect for the purposes of section 221AZKEA as applying to the entity.

             (3)  In this section:

entity has the meaning given by section 960‑100 of the Income Tax Assessment Act 1997.

Income Tax Assessment Act 1997

13  Subsection 2‑15(3) (after item 4 of the table headed “Key participants in the income tax system”)

Insert:

4A.

foreign resident

section 995‑1

14  Subsections 26‑25(1) and (2)

Repeal the subsections, substitute:

             (1)  You cannot deduct under this Act interest (within the meaning of Division 11A of Part III of the Income Tax Assessment Act 1936) or a *royalty if:

                     (a)  Subdivision 12‑F in Schedule 1 to the Taxation Administration Act 1953 requires you to withhold an amount from the interest or royalty; and

                     (b)  either:

                              (i)  you fail to withhold the amount; or

                             (ii)  after withholding the amount, you fail to comply with section 16‑70 in that Schedule in relation to that amount.

             (2)  You cannot deduct under this Act interest (within the meaning of Division 11A of Part III of the Income Tax Assessment Act 1936), or a *royalty, that is in the form of a *non‑cash benefit if:

                     (a)  section 14‑5 or 14‑10 in Schedule 1 to the Taxation Administration Act 1953 requires you to pay an amount to the Commissioner before providing the benefit, because of Subdivision 12‑F in that Schedule; and

                     (b)  you fail to pay the amount as required by that section.

15  Paragraph 26‑25(3)(a)

Omit “a payment of”.

16  Paragraph 26‑25(3)(a)

Omit “, for”, substitute “for”.

Taxation Administration Act 1953

17  Subsection 8AAB(5) (after table item 17F)

Insert:

17GA

45‑232 in Schedule 1

Taxation Administration Act 1953

18  Section 6‑1 in Schedule 1

Omit “and liability”, substitute “, liability”.

19  Section 6‑1 in Schedule 1

After “(HECS)”, insert “and liability to repay financial supplement debts under the Student Financial Supplement Scheme (SFSS)”.

20  After paragraph 11‑1(c) in Schedule 1

Insert:

                   (da)  amounts of liabilities to the Commonwealth under Part 2B.3 of the Social Security Act 1991; and

                   (db)  amounts of liabilities to the Commonwealth under Division 6 of Part 4A of the Student Assistance Act 1973; and

21  Section 12‑215 in Schedule 1

Omit all the words before paragraph (a), substitute:

                   An entity that receives a payment of a *dividend of a company that is an Australian resident must withhold an amount from the dividend if:

22  Paragraph 12‑215(b) in Schedule 1

After “is”, insert “or becomes”.

23  At the end of section 12‑215 in Schedule 1

Add:

             (2)  The entity must withhold the amount:

                     (a)  if the foreign resident is so entitled when the entity receives the payment—immediately after the entity receives the payment; or

                     (b)  if the foreign resident becomes so entitled after the entity receives the payment—immediately after the foreign resident becomes so entitled.

24  Section 12‑250 in Schedule 1

Omit all the words before paragraph (a), substitute:

                   An entity that receives a payment of interest (within the meaning of Division 11A of Part III of the Income Tax Assessment Act 1936) must withhold an amount from the payment if:

25  Paragraph 12‑250(b) in Schedule 1

After “is”, insert “or becomes”.

26  At the end of section 12‑250 in Schedule 1

Add:

             (2)  The entity must withhold the amount:

                     (a)  if the foreign resident is so entitled when the entity receives the payment—immediately after the entity receives the payment; or

                     (b)  if the foreign resident becomes so entitled after the entity receives the payment—immediately after the foreign resident becomes so entitled.

27  Section 12‑285 in Schedule 1

Omit all the words before paragraph (a), substitute:

                   An entity that receives a payment of a *royalty must withhold an amount from the payment if:

28  Paragraph 12‑285(b) in Schedule 1

After “is”, insert “or becomes”.

29  At the end of section 12‑285 in Schedule 1

Add:

             (2)  The entity must withhold the amount:

                     (a)  if the foreign resident is so entitled when the entity receives the payment—immediately after the entity receives the payment; or

                     (b)  if the foreign resident becomes so entitled after the entity receives the payment—immediately after the foreign resident becomes so entitled.

30  After paragraph 15‑30(c) in Schedule 1

Insert:

                   (da)  the rates specified in section 1061ZZFA (about repayments of accumulated FS debts) of the Social Security Act 1991; and

                   (db)  the rates specified in section 12ZK (about repayments of accumulated FS debts) of the Student Assistance Act 1973; and

31  Paragraph 15‑50(1)(b) in Schedule 1

Omit “11‑1(b) or (c)”, substitute “11‑1(b), (c), (da) or (db)”.

32  Section 16‑5 in Schedule 1 (note 2)

Omit “immediately after receiving the payment”, substitute “at the time required by that section”.

33  Section 16‑165 in Schedule 1

Repeal the section, substitute:

16‑165  Payment summary for retained amount in relation to eligible termination payment

             (1)  Within 14 days after an entity (the payer) makes an *eligible termination payment that includes one or more retained amounts mentioned in subsection 27AC(2) of the Income Tax Assessment Act 1936, the payer must:

                     (a)  give a *payment summary that covers the retained amount or amounts to the recipient of the payment (the recipient); and

                     (b)  give a copy of the summary to the Commissioner.

(The summary must cover only the retained amount or amounts.)

Note:          The payer must give the payment summary even if the payment is not covered by section 12‑85.

Exceptions

             (2)  Subsection (1) does not apply if the *eligible termination payment:

                     (a)  is of a kind mentioned in paragraph (a) or (jaa) of the definition of eligible termination payment in subsection 27A(1) of the Income Tax Assessment Act 1936; and

                     (b)  is a CGT exempt component within the meaning of that subsection.

             (3)  Subsection (1) also does not apply if the *eligible termination payment:

                     (a)  is a death benefit of a kind set out in item 2 or 4 of Table 1 in subsection 27AAA(2) of the Income Tax Assessment Act 1936; and

                     (b)  is made to a person who is a dependant (within the meaning of paragraph (b) of the definition of dependant in subsection 27A(1) of that Act) of the deceased taxpayer concerned.

34  Paragraph 16‑170(1)(f) in Schedule 1

Repeal the paragraph, substitute:

                      (f)  specifies the retained amount or amounts (if any) mentioned in subsection 16‑165(1) that it covers; and

                     (g)  is in the *approved form.

35  At the end of section 45‑5 in Schedule 1

Add:

            ; and (d)  amounts of liabilities to the Commonwealth under Part 2B.3 of the Social Security Act 1991; and

                     (e)  amounts of liabilities to the Commonwealth under Division 6 of Part 4A of the Student Assistance Act 1973.

36  After subsection 45‑120(2) in Schedule 1

Insert:

          (2A)  The instalment income of a *life insurance entity or *registered organisation for a period also includes its *statutory income, to the extent that the statutory income:

                     (a)  is reasonably attributable to that period; and

                     (b)  is included in the *CS/RA class of its assessable income for the income year that is or includes that period.

Note:          The CS/RA class relates to the Complying Superannuation/Roll‑over Annuity aspect of the entity’s business.

37  At the end of section 45‑330 in Schedule 1

Add:

Special rule for life insurance entities and registered organisations

             (3)  The adjusted taxable income of a *life insurance entity or *registered organisation for the *base year is worked out as follows:

Method statement

Step 1.   Recalculate each component of the taxable income for the *base assessment (except the *CS/RA component), disregarding any *capital gains.

Step 2.   Add up the components recalculated under step 1.

Step 3.   Add to the step 2 result the *CS/RA component for the *base assessment.

Step 4.   Add to the step 3 result the deductions for *tax losses used in making the *base assessment.

Step 5.   Reduce the step 4 result by the amount of any *tax loss, to the extent that the life insurance entity or registered organisation can carry it forward to the next income year.

38  Section 45‑340 in Schedule 1 (after step 3 of the method statement)

Insert:

Step 3A. The amount (if any) that you would have been liable to pay for the *base year by way of an *FS assessment debt if your taxable income for the base year had been your *adjusted taxable income, or your *adjusted withholding income, for that year is worked out.

39  Section 45‑340 in Schedule 1 (step 4 of the method statement)

Omit “and 3”, substitute “, 3 and 3A”.

40  Section 45‑375 in Schedule 1 (after step 3 of the method statement)

Insert:

Step 3A. The amount (if any) that you would have been liable to pay for the variation year by way of an *FS assessment debt if your taxable income for that year had been your *adjusted assessed taxable income for that year is worked out.

41  Section 45‑375 in Schedule 1 (step 4 of the method statement)

Omit “and 3”, substitute “, 3 and 3A”.

42  Group heading before section 360‑60 in Schedule 1

Repeal the heading, substitute:

Exercise of powers by authorised person

43  Section 360‑60 (heading) in Schedule 1

Repeal the heading, substitute:

360‑60  Where powers to be exercised

44  Subsection 360‑60(1) in Schedule 1

Repeal the subsection, substitute:

             (1)  A person who is authorised to perform a function, or exercise a power, of the Commissioner under this Division must do so only at places approved by the Commissioner.

45  Section 360‑75 in Schedule 1 (table item 35)

Repeal the item.

46  Section 360‑75 in Schedule 1 (after table item 50)

Insert:

53

section 52‑150

Family assistance payments

47  After paragraph 360‑80(a) in Schedule 1

Insert:

                   (ba)  a fee or commission you incur as mentioned in section 25‑7 (for advice about family tax benefit) of the Income Tax Assessment Act 1997; or

48  Section 360‑85 in Schedule 1 (table item 10)

Repeal the item.