2008 The Parliament of the Commonwealth of Australia HOUSE OF REPRESENTATIVES Presented and read a first time First Home Saver Accounts (Consequential Amendments) Bill 2008 No. , 2008 (Treasury) A Bill for an Act to amend the law relating to financial markets, taxation, superannuation, social security and veterans' entitlements, and for related purposes [Page Break] 1 Short title ........................................................................................... 1 2 Commencement ................................................................................. 1 3 Schedule(s) ........................................................................................ 2 Schedule 1--Main taxation related amendments 3 Income Tax Act 1986 3 Income Tax Assessment Act 1936 3 Income Tax Assessment Act 1997 4 Income Tax Rates Act 1986 14 Taxation Administration Act 1953 16 Schedule 2--Amendments relating to the Corporations Act 22 Australian Securities and Investments Commission Act 2001 22 Corporations Act 2001 22 Schedule 3--Other consequential amendments 25 Anti-Money Laundering and Counter-Terrorism Financing Act 2006 25 Australian Prudential Regulation Authority Act 1998 25 Banking Act 1959 26 Life Insurance Act 1995 27 Social Security Act 1991 29 Superannuation (Government Co-contribution for Low Income Earners) Act 2003 30 Superannuation Industry (Supervision) Act 1993 31 Veterans' Entitlements Act 1986 31 Schedule 4--Amendments to change references to virtual PST assets etc. 33 Income Tax Assessment Act 1936 33 Income Tax Assessment Act 1997 33 Taxation Administration Act 1953 36 Schedule 5--Amendments to change references to virtual PST 37 Income Tax Assessment Act 1997 37 Schedule 6--Amendments to change references to complying superannuation class 39 [Page Break] Income Tax Rates Act 1986 40 Taxation Administration Act 1953 40 Schedule 7--Other amendments relating to changes of references to virtual PST etc. 41 Income Tax Assessment Act 1936 41 Income Tax Assessment Act 1997 42 Income Tax Rates Act 1986 49 Taxation Administration Act 1953 50 B08PW251.v06.doc 21/4/2008 4:41 PM [Page Break] 2 financial markets, taxation, superannuation, social 3 security and veterans' entitlements, and for related 4 purposes 5 The Parliament of Australia enacts: 6 1 Short title 7 This Act may be cited as the First Home Saver Accounts 8 (Consequential Amendments) Act 2008. 9 2 Commencement 10 This Act commences on the day after it receives the Royal Assent. [Page Break] 2 Each Act that is specified in a Schedule to this Act is amended or 3 repealed as set out in the applicable items in the Schedule 4 concerned, and any other item in a Schedule to this Act has effect 5 according to its terms. B08PW251.v06.doc 21/4/2008 4:41 PM [Page Break] 2 Schedule 1--Main taxation related 3 amendments 4 5 Income Tax Act 1986 6 1 After subsection 5(2A) 7 Insert: 8 (2B) This Act does not impose tax payable in accordance with 9 section 345-100 of the Income Tax Assessment Act 1997. 10 Income Tax Assessment Act 1936 11 2 Subsection 6(1) (at the end of the definition of assessment) 12 Add: 13 ; or (i) the ascertainment of an amount of FHSA misuse tax (within 14 the meaning of the Income Tax Assessment Act 1997) (or that 15 no tax is payable). 16 3 Subsection 6(1) 17 Insert: 18 FHSA trust has the meaning given by the First Home Saver 19 Accounts Act 2008. 20 4 After section 95 21 Insert: 22 95AA Division does not apply in relation to FHSA trust 23 This Division does not apply in relation to a trust estate that is an 24 FHSA trust. 25 5 After paragraph 124ZM(3)(d) 26 Insert: 27 or (da) an FHSA trust; 28 6 After paragraph 202(ka) [Page Break] 2 (kb) to facilitate: 3 (i) the administration of Division 2 of Part 5 of the First 4 Home Saver Accounts Act 2008 in relation to 5 individuals; and 6 (ii) the administration of that Act in relation to FHSA 7 providers (within the meaning of that Act); and 8 7 At the end of section 272-100 of Schedule 2F 9 Add: 10 ; or (e) it is an FHSA trust at the particular time. 11 Income Tax Assessment Act 1997 12 8 Section 9-1 (after table item 8) 13 Insert: 8A An FHSA provider in relation to an FHSA section 345-5 trust 14 9 Section 11-55 (after table item headed "firearms surrender 15 arrangements") 16 Insert: first home saver accounts credits to and payments from .............................................. 345-50 17 10 Subparagraph 115-100(a)(ii) 18 After "superannuation entity", insert "or *FHSA trust". 19 11 After subparagraph 115-100(b)(i) 20 Insert: 21 (iia) by an FHSA trust; or 22 12 After subparagraph 115-280(1)(a)(i) 23 Insert: 24 (ia) an *FHSA trust; or 25 13 Paragraph 115-280(2)(a) 26 After "superannuation entity", insert "or an *FHSA trust". B08PW251.v06.doc 21/4/2008 4:41 PM [Page Break] 2 After "superannuation entity", insert ", an FHSA trust". 3 15 Paragraph 115-280(5)(a) 4 After "superannuation entity", insert "or an *FHSA trust". 5 16 Paragraph 115-280(5)(b) 6 After "superannuation entity", insert ", an FHSA trust". 7 17 After paragraph 166-245(2)(b) 8 Insert: 9 (ba) an *FHSA trust; and 10 18 After paragraph 166-245(3)(b) 11 Insert: 12 (ba) if the entity is an *FHSA trust--the entity is an FHSA trust; 13 and 14 19 Paragraph 207-15(2)(a) 15 After "a *complying superannuation entity", insert "or *FHSA trust". 16 20 Paragraph 207-35(1)(c) 17 After "a *complying superannuation entity", insert "or *FHSA trust". 18 21 After paragraph 207-45(c) 19 Insert: 20 (ca) the trustee of an *FHSA trust; or 21 22 At the end of section 290-5 22 Add: 23 ; (d) a payment from an *FHSA required under section 22 or 34 of 24 the First Home Saver Accounts Act 2008; 25 (e) a *Government FHSA contribution. 26 23 Subsection 295-10(2) 27 Repeal the subsection, substitute: 28 (2) Use this method for *RSA providers: [Page Break] 2 Step 1. Work out the entity's *no-TFN contributions income. 3 Apply the applicable rates as set out in the Income Tax 4 Rates Act 1986 to that income. 5 Step 2. Work out the entity's assessable income and deductions 6 taking account of the special rules in this Division. 7 Step 3. Work out the *RSA component and *standard component 8 of the entity's taxable income. 9 Step 4. If the entity is also an *FHSA provider, work out the 10 *FHSA component of the entity's taxable income. 11 Step 5. Apply the applicable rates as set out in the Income Tax 12 Rates Act 1986 to the components. The *RSA component 13 and the *FHSA component are taxed at a concessional 14 rate. 15 Step 6. Subtract the entity's *tax offsets from the sum of the 16 entity's step 1 and step 5 amounts. 17 24 After section 295-170 18 Insert: 19 295-171 Exception--payments from FHSAs and Government FHSA 20 contributions 21 Item 1 of the table in section 295-160 does not include in 22 assessable income a contribution that is: 23 (a) a payment from an *FHSA required under section 22 or 34 of 24 the First Home Saver Accounts Act 2008; or 25 (b) a *Government FHSA contribution. 26 25 Subsection 295-555(1) 27 Repeal the subsection, substitute: 28 (1) The taxable income of an *RSA provider is split into: 29 (a) an *RSA component; and B08PW251.v06.doc 21/4/2008 4:41 PM [Page Break] 2 component; and 3 (c) a *standard component. 4 Note: The RSA component and the FHSA component (if applicable) are 5 taxed at the same concessional rate that applies to the low tax 6 component of complying superannuation funds, complying approved 7 deposit funds and pooled superannuation trusts (see section 23 of the 8 Income Tax Rates Act 1986). The standard component is taxed at the 9 standard company rate. 10 26 Subsections 295-555(3) and (4) 11 Repeal the subsections, substitute: 12 (3) However, if the sum of the *RSA component and the *FHSA 13 component (if any) is more than the *RSA provider's taxable 14 income: 15 (a) the provider's taxable income is equal to that sum; and 16 (b) this Act applies to the provider as if it had a *tax loss for the 17 income year of an amount that would have been that loss if 18 the RSA component and the FHSA component (if any) were 19 not *ordinary income or *statutory income. 20 (4) The standard component is the remaining part (if any) of the *RSA 21 provider's taxable income for the income year after subtracting the 22 *RSA component and the *FHSA component (if any). 23 27 Section 320-1 24 Omit "complying superannuation business and", substitute "complying 25 superannuation business or FHSAs, and". 26 28 Section 320-1 27 Omit "complying superannuation business;", substitute "complying 28 superannuation business or FHSAs;". 29 29 Paragraph 320-80(2)(b) 30 After "exempt life insurance policy", insert ", *FHSA". 31 30 After paragraph 320-85(2)(b) 32 Insert: 33 (ba) is an *FHSA; or [Page Break] 2 Insert: 3 Division 345--FHSAs 4 Table of Subdivisions 5 Guide to Division 345 6 345-A Treatment of FHSA providers 7 345-B Treatment of FHSA holders 8 345-C FHSA misuse tax 9 Guide to Division 345 10 345-1 What this Division is about 11 FHSAs (short for first home saver accounts) are accounts, life 12 policies and interests in trusts that comply with requirements in the 13 First Home Saver Accounts Act 2008. 14 This Division sets out the income tax treatment of the financial 15 institutions that provide FHSAs (Subdivision 345-A) and of 16 individuals that hold FHSAs (Subdivision 345-B). 17 Certain payments from FHSAs are subject to FHSA misuse tax 18 (Subdivision 345-C). 19 Subdivision 345-A--Treatment of FHSA providers 20 Table of sections 21 345-5 FHSA provider that is trustee of FHSA trust--tax payable 22 345-10 FHSA provider that is trustee of FHSA trust--CGT to be primary code for 23 calculating gains or losses 24 345-15 FHSA provider that is an ADI (other than RSA provider)--taxable income 25 and standard component of taxable income 26 345-20 FHSA provider that is an ADI--FHSA component of taxable income B08PW251.v06.doc 21/4/2008 4:41 PM [Page Break] 2 (1) The trustee of an *FHSA trust is liable to pay income tax for the 3 *financial year on the taxable income of the trust. 4 (2) The amount of the tax is the amount of income tax that would be 5 payable by the trust under section 4-10 if the trust were an 6 *Australian resident liable (in accordance with section 4-1) to pay 7 income tax for the *financial year. 8 (3) For the purposes of subsection (2): 9 (a) apply the special rules in this Subdivision in working out the 10 taxable income of the trust; and 11 (b) apply the applicable rate of tax specified in section 30 of the 12 Income Tax Rates Act 1986 to the taxable income of the trust. 13 345-10 FHSA provider that is trustee of FHSA trust--CGT to be 14 primary code for calculating gains or losses 15 (1) The modifications in subsection (2) apply if a *CGT event happens 16 involving a *CGT asset that was owned by an *FHSA trust. 17 (2) These provisions do not apply to the *CGT event: 18 (a) sections 6-5 (about *ordinary income); 19 (b) section 8-1 (about amounts you can deduct); 20 (c) sections 15-15 and 25-40 (about profit-making undertakings 21 or plans). 22 Exceptions 23 (3) The provisions referred to in subsection (2) can apply to the *CGT 24 event if: 25 (a) any *capital gain or *capital loss from the event is attributable 26 to currency exchange rate fluctuations; or 27 (b) the *CGT asset is one of the following: 28 (i) debenture stock, a bond, *debenture, certificate of 29 entitlement, bill of exchange, promissory note or other 30 security; 31 (ii) a deposit with a bank, building society or other financial 32 institution; 33 (iii) a loan (secured or not); [Page Break] 2 pay an amount (whether the liability is secured or not). 3 (4) The provisions referred to in subsection (2) can also apply to the 4 *CGT event if a *capital gain or *capital loss from the event is 5 disregarded because of one of the provisions in this table: 6 Where gain or loss disregarded because of CGT provision Item Provision Brief description 1 Paragraph 104-15(4)(a) Title in a CGT asset does not pass when a hire purchase or similar agreement ends 2 Section 118-5 Cars, motor cycles and valour decorations 3 Section 118-10 Collectables and personal use assets 4 Section 118-13 Shares in a PDF 5 Section 118-25 Trading stock 6 Section 118-30 Film copyright 7 Section 118-35 Research and development 8 Section 118-55 Foreign currency hedging gains and losses 9 Section 118-60 Certain gifts 10 Section 118-300 Insurance policies 11 Section 118-305 Superannuation 7 345-15 FHSA provider that is an ADI (other than RSA provider)-- 8 taxable income and standard component of taxable 9 income 10 (1) The taxable income of an *FHSA provider that is an *ADI (other 11 than an *RSA provider) is split into an *FHSA component and a 12 *standard component. 13 Note: The taxable income of an FHSA provider that is an ADI and an RSA 14 provider is split into an RSA component, an FHSA component and a 15 standard component (see section 295-555). 16 (2) If the *FHSA component exceeds the *FHSA provider's taxable 17 income: 18 (a) the provider's taxable income is equal to the FHSA 19 component; and 20 (b) this Act applies to the provider as if it had a *tax loss for the 21 income year of an amount that would have been that loss if B08PW251.v06.doc 21/4/2008 4:41 PM [Page Break] 2 *statutory income. 3 (3) The standard component is the remaining part (if any) of the 4 *FHSA provider's taxable income for the income year after 5 subtracting the *FHSA component. 6 345-20 FHSA provider that is an ADI--FHSA component of taxable 7 income 8 The FHSA component for an income year of an *FHSA provider 9 that is an *ADI is the total earnings or other return for the year 10 credited to *FHSAs provided by the FHSA provider, reduced by 11 the total amount of fees (however described) paid from those 12 FHSAs to the FHSA provider for providing them. 13 Subdivision 345-B--Treatment of FHSA holders 14 Table of sections 15 345-50 Credits to and payments from FHSAs etc. 16 345-50 Credits to and payments from FHSAs etc. 17 (1) An amount of earnings or other return credited to an *FHSA you 18 hold is not your assessable income and is not your *exempt 19 income. 20 (2) A payment made from an *FHSA you hold is not your assessable 21 income and is not your *exempt income. 22 (3) A *Government FHSA contribution payable for you in accordance 23 with the First Home Saver Accounts Act 2008, and paid in 24 accordance with Part 4 of that Act, is not your assessable income 25 and is not your *exempt income. 26 (4) A *capital gain or *capital loss that you make from a *CGT event 27 happening in relation to a right to, or any part of, an *FHSA that 28 you hold is disregarded. [Page Break] 2 Table of sections 3 345-100 Liability for FHSA misuse tax 4 345-110 Due date for payment of FHSA misuse tax 5 345-115 General interest charge 6 345-100 Liability for FHSA misuse tax 7 A person is liable to pay tax imposed by the Income Tax (First 8 Home Saver Accounts Misuse Tax) Act 2008 in respect of a *FHSA 9 home acquisition payment from an *FHSA held by the person if: 10 (a) the payment fails to satisfy the *FHSA payment conditions; 11 or 12 (b) the payment satisfies the FHSA payment conditions, but is an 13 *FHSA ineligibility payment. 14 Note: The Commissioner may make an assessment of the amount of the tax 15 under section 169 of the Income Tax Assessment Act 1936. 16 345-110 Due date for payment of FHSA misuse tax 17 *FHSA misuse tax assessed for a person is due and payable 21 days 18 after the Commissioner gives the person notice of the assessment. 19 345-115 General interest charge 20 If *FHSA misuse tax payable by a person remains unpaid after the 21 time by which it is due and payable, the person is liable to pay the 22 *general interest charge on the unpaid amount for each day in the 23 period that: 24 (a) starts at the beginning of the day on which the FHSA misuse 25 tax was due to be paid; and 26 (b) ends at the end of the last day on which, at the end of the day, 27 any of the following remains unpaid: 28 (i) the FHSA misuse tax; 29 (ii) general interest charge on any of the FHSA misuse tax. 30 Note: The general interest charge is worked out under Part IIA of the 31 Taxation Administration Act 1953. B08PW251.v06.doc 21/4/2008 4:41 PM [Page Break] 2 contract of reinsurance) 3 Repeal the paragraph, substitute: 4 (a) the parts of *complying superannuation/FHSA life insurance 5 policies in respect of which the liabilities of the company that 6 issued the policies are to be discharged out of a *complying 7 superannuation/FHSA asset pool; and 8 33 Subsection 995-1(1) (definition of excluded virtual PST life 9 insurance policy) 10 Repeal the definition. 11 34 Subsection 995-1(1) 12 Insert: 13 FHSA has the meaning given by the First Home Saver Accounts 14 Act 2008. 15 35 Subsection 995-1(1) 16 Insert: 17 FHSA component has the meaning given by section 345-20. 18 36 Subsection 995-1(1) 19 Insert: 20 FHSA holder has the meaning given by the First Home Saver 21 Accounts Act 2008. 22 37 Subsection 995-1(1) 23 Insert: 24 FHSA home acquisition payment has the meaning given by the 25 First Home Saver Accounts Act 2008. 26 38 Subsection 995-1(1) 27 Insert: 28 FHSA ineligibility payment has the meaning given by the First 29 Home Saver Accounts Act 2008. [Page Break] 2 Insert: 3 FHSA misuse tax means tax imposed under the Income Tax (First 4 Home Saver Accounts Misuse Tax) Act 2008. 5 40 Subsection 995-1(1) 6 Insert: 7 FHSA payment conditions has the meaning given by the First 8 Home Saver Accounts Act 2008. 9 41 Subsection 995-1(1) 10 Insert: 11 FHSA provider has the meaning given by the First Home Saver 12 Accounts Act 2008. 13 42 Subsection 995-1(1) 14 Insert: 15 FHSA trust has the meaning given by the First Home Saver 16 Accounts Act 2008. 17 43 Subsection 995-1(1) 18 Insert: 19 Government FHSA contribution has the meaning given by the 20 First Home Saver Accounts Act 2008. 21 44 Subsection 995-1(1) (definition of standard component) 22 Repeal the definition, substitute: 23 standard component: 24 (a) in respect of an *RSA provider--has the meaning given by 25 section 295-555; or 26 (b) in respect of an *FHSA provider that is not an RSA 27 provider--has the meaning given by section 345-15. 28 Income Tax Rates Act 1986 B08PW251.v06.doc 21/4/2008 4:41 PM [Page Break] 2 Insert: 3 ADI has the same meaning as in the Income Tax Assessment Act 4 1997. 5 46 Subsection 3(1) 6 Insert: 7 FHSA component has the same meaning as in the Income Tax 8 Assessment Act 1997. 9 47 Subsection 3(1) 10 Insert: 11 FHSA provider has the same meaning as in the Income Tax 12 Assessment Act 1997. 13 48 Subsection 3(1) 14 Insert: 15 FHSA trust has the same meaning as in the Income Tax 16 Assessment Act 1997. 17 49 After paragraph 23(2)(b) 18 Insert: 19 (ba) an FHSA provider; or 20 50 After paragraph 23(3)(a) 21 Insert: 22 (aa) in respect of the FHSA component (if any)--15%; and 23 51 After subsection 23(3) 24 Insert: 25 (3A) The rates of tax in respect of the taxable income of a company that 26 is an ADI and an FHSA provider (but not an RSA provider) are: 27 (a) in respect of the FHSA component--15%; and 28 (b) in respect of the standard component--30%. 29 52 At the end of Part III [Page Break] 2 30 Rate of tax in relation to trustee of FHSA trust 3 The rate of tax for the purposes of section 345-5 of the Income Tax 4 Assessment Act 1997 is 15%. 5 Taxation Administration Act 1953 6 53 Subsection 8AAB(5) (after table item 1AA) 7 Insert: 1A 52 First Home Saver Accounts Act 2008 8 54 Subsection 8AAB(5) (after table item 2B) 9 Insert: 2C 345-115 Income Tax Assessment Act 1997 10 55 Paragraph 8WA(1AA)(b) 11 After "(j),", insert "(kb),". 12 56 Paragraph 8WB(1A)(a) 13 After "(ka),", insert "(kb),". 14 57 Paragraph 8WB(1A)(b) 15 After "(ka),", insert "(kb),". 16 58 After paragraph 45-120(2)(c) in Schedule 1 17 Insert: 18 or (ca) an *FHSA trust; 19 59 At the end of subsection 45-290(2) in Schedule 1 20 Add: 21 ; or (d) an *FHSA trust for that year. 22 60 At the end of subsection 45-330(2) in Schedule 1 23 Add: 24 ; or (d) an *FHSA trust for that year. 25 61 At the end of subsection 45-370(2) in Schedule 1 B08PW251.v06.doc 21/4/2008 4:41 PM [Page Break] 2 ; or (d) an *FHSA trust for the variation year. 3 62 Subsection 250-10(2) in Schedule 1 (after item 24C of the 4 table) 5 Insert: 24D returnable Government 43 First Home Saver Accounts Act FHSA contributions 2008 24E returnable underpaid 47 First Home Saver Accounts Act amounts in relation to 2008 Government FHSA contributions 6 63 Subsection 250-10(2) in Schedule 1 (after table item 38B) 7 Insert: 38C FHSA misuse tax section 345-110 Income Tax Assessment Act 1997 8 64 After subsection 286-75(2A) in Schedule 1 9 Insert: 10 (2B) You are also liable to an administrative penalty if: 11 (a) you are required under Division 391 to give a statement to an 12 entity (other than the Commissioner) in the *approved form 13 by a particular day; and 14 (b) you do not give the statement in the approved form to the 15 entity by that day. 16 (2C) You are also liable to an administrative penalty if: 17 (a) you are required under section 20 of the First Home Saver 18 Accounts Act 2008 to give a notice to an entity in the 19 *approved form by a particular day; and 20 (b) you do not give the notice in the approved form to the entity 21 by that day. 22 65 Paragraph 286-80(2)(a) in Schedule 1 23 Omit "or (2A)", substitute ", (2A), (2B) or (2C)". 24 66 After Division 390 of Part 5-25 of Schedule 1 25 Insert: [Page Break] 2 Table of Subdivisions 3 Guide to Division 391 4 391-A Account activity statements 5 391-B Transfer statements 6 Guide to Division 391 7 391-1 What this Division is about 8 FHSA providers must give the Commissioner information 9 periodically about FHSAs (such as information about contributions 10 made to FHSAs). 11 FHSA providers are also required to give information to other 12 FHSA providers when making transfer payments from FHSAs to 13 other FHSAs or to superannuation interests. 14 Subdivision 391-A--Account activity statements 15 Table of sections 16 391-5 FHSA account activity statements 17 391-5 FHSA account activity statements 18 (1) An *FHSA provider must give the Commissioner the following 19 statements under this section: 20 (a) a statement in relation to the amount of *personal FHSA 21 contributions (if any) made to each *FHSA provided by the 22 provider during the period mentioned in subsection (3) for 23 that kind of statement; 24 (b) a statement in relation to the balance of an FHSA provided 25 by the provider during the period mentioned in subsection (3) 26 for that kind of statement; 27 (c) a statement in relation to each FHSA opened or issued (if 28 any) by the provider during the period specified in 29 subsection (3) for that kind of statement; B08PW251.v06.doc 21/4/2008 4:41 PM [Page Break] 2 provider during the period specified in subsection (3) for that 3 kind of statement; 4 (e) a statement in relation to payments (other than a payment of a 5 kind mentioned in subparagraph 31(1)(b)(iii) or 6 paragraph (1)(f) or (g) of the First Home Saver Accounts Act 7 2008) (if any) made from each FHSA provided by the 8 provider during the period specified in subsection (3) for that 9 kind of statement. 10 Note: Section 286-75 in Schedule 1 to the Taxation Administration Act 1953 11 provides an administrative penalty for breach of any of these 12 paragraphs. A breach of any of these paragraphs may also be an 13 offence under section 8C of that Act. 14 (2) However, the provider is not required to give a statement 15 mentioned in paragraph (1)(a) if, during the period, the provider 16 transferred the balance of the *FHSA to another FHSA. 17 (3) The period for a particular kind of statement under subsection (1) 18 is: 19 (a) a financial year; or 20 (b) if the Commissioner determines another period under 21 subsection (4) for the kind of statement--that period. 22 (4) The Commissioner may determine, by legislative instrument, a 23 period mentioned in subsection (1) for a kind of statement. 24 (5) A statement under subsection (1) must be in the *approved form. 25 (6) A statement must be given to the Commissioner on or before a day 26 specified in the determination under subsection (7) for the 27 statement. 28 Note: Section 388-55 allows the Commissioner to defer the time for giving 29 an approved form. 30 (7) The Commissioner may determine, by legislative instrument, the 31 day, on or before which, a statement under subsection (1) must be 32 given to the Commissioner. 33 (8) The day specified in the determination may be different: 34 (a) for different kinds of *FHSA provider; and 35 (b) in relation to any other matter. [Page Break] 2 may specify the day. 3 (10) The *approved form may require a statement to contain the 4 following: 5 (a) the *tax file number of the *FHSA holder; 6 (b) the tax file number of the *FHSA provider. 7 (11) Subsection (10) does not limit the information that the *approved 8 form may require a statement to contain. 9 Subdivision 391-B--Transfer statements 10 Table of sections 11 391-10 Statements about transfer payments between FHSAs etc. 12 391-10 Statements about transfer payments between FHSAs etc. 13 (1) This section applies if an *FHSA provider (the first provider) in 14 relation to an *FHSA (the first FHSA) makes a payment from the 15 FHSA: 16 (a) to an FHSA provided by another FHSA provider, in 17 accordance with section 35 of the First Home Saver Accounts 18 Act 2008; or 19 (b) to a *superannuation provider in relation to a *complying 20 superannuation plan, in accordance with section 22 or 34 of 21 that Act. 22 (2) The first provider must: 23 (a) give the other *FHSA provider or *superannuation provider a 24 statement in relation to the payment within 7 days after the 25 day on which the payment is made; and 26 (b) give the individual for whose benefit the payment is made a 27 statement in relation to the payment within 30 days after the 28 day on which the payment is made. 29 Note: Section 286-75 provides an administrative penalty for breach of this 30 subsection. 31 (3) A statement under subsection (2) must be in the *approved form. 32 Note: Section 388-55 allows the Commissioner to defer the time for giving 33 an approved form. B08PW251.v06.doc 21/4/2008 4:41 PM [Page Break] 2 following information: 3 (a) information relating to *personal FHSA contributions made 4 to the first FHSA; 5 (b) information relating to the FHSA holder, including whether 6 the individual is in breach of the account balance cap and 7 whether the condition in subparagraph 32(1)(c)(i) of the First 8 Home Saver Accounts Act 2008 has been met in relation to 9 the individual. 10 (5) Subsection (4) does not limit the information that the *approved 11 form may require the statement to contain. 12 (6) The *approved form may require the statement to contain the *tax 13 file number of: 14 (a) the first provider; and 15 (b) the *FHSA holder. [Page Break] 2 Schedule 2--Amendments relating to the 3 Corporations Act 4 5 Australian Securities and Investments Commission Act 2001 6 1 At the end of subsection 12A(1) 7 Add: 8 ; (h) the First Home Saver Accounts Act 2008. 9 2 After paragraph 12BAA(7)(g) 10 Insert: 11 (ga) an FHSA (first home saver account) within the meaning of 12 the First Home Saver Accounts Act 2008; 13 Corporations Act 2001 14 3 Section 9 15 Insert: 16 FHSA product when used in a provision outside Chapter 7, has the 17 same meaning as it has in Chapter 7. 18 4 Section 9 (after paragraph (h) of the definition of managed 19 investment scheme) 20 Insert: 21 (ha) an FHSA trust, within the meaning of the First Home Saver 22 Accounts Act 2008; 23 5 Section 761A (after paragraph (d) of the definition of basic 24 deposit product) 25 Insert: 26 (da) the facility is not an FHSA product; and 27 6 Section 761A 28 Insert: B08PW251.v06.doc 21/4/2008 4:41 PM [Page Break] 2 Home Saver Accounts Act 2008). 3 7 Subsection 761E(3) (after item 2 of the table) 4 Insert: 2A FHSA product the person becomes the holder (within the meaning of the First Home Saver Accounts Act 2008) of the FHSA product 5 8 After paragraph 761E(3A)(b) 6 Insert: 7 (ba) the client making a further contribution (within the meaning 8 of the First Home Saver Accounts Act 2008) into an FHSA 9 product maintained in the client's name; 10 9 After paragraph 764A(1)(h) 11 Insert: 12 (ha) an FHSA (short for first home saver account) within the 13 meaning of the First Home Saver Accounts Act 2008; 14 10 After paragraph 766E(3)(ca) 15 Insert: 16 (cb) the operation of an FHSA trust (within the meaning of the 17 First Home Saver Accounts Act 2008) by an FHSA provider 18 (within the meaning of that Act); 19 11 After subsection 946AA(1) 20 Insert: 21 (1A) The providing entity does not have to give the client a Statement of 22 Advice as mentioned in subsection (1) if: 23 (a) the advice relates to an FHSA product; and 24 (b) both subparagraphs (1)(a)(i) and (ii) apply. 25 12 Subsection 1016A(1) (after paragraph (d) of the definition 26 of relevant financial product) 27 Insert: 28 (da) an FHSA product; or [Page Break] 2 Insert: 3 (iiia) an FHSA product; or 4 14 After subparagraph 1019A(1)(a)(iii) 5 Insert: 6 (iiia) FHSA products; B08PW251.v06.doc 21/4/2008 4:41 PM [Page Break] 2 Schedule 3--Other consequential 3 amendments 4 5 Anti-Money Laundering and Counter-Terrorism Financing 6 Act 2006 7 1 Section 5 (definition of contribution) 8 Omit "an RSA", substitute "an FHSA or RSA". 9 2 Section 5 10 Insert: 11 FHSA (short for first home saver account) has the same meaning 12 as in the First Home Saver Accounts Act 2008. 13 3 Section 5 14 Insert: 15 FHSA provider (short for first home saver account provider) has 16 the same meaning as in the First Home Saver Accounts Act 2008. 17 4 Subsection 6(2) (after table item 43) 18 Insert: 43A in the capacity of FHSA provider, the FHSA holder accepting a contribution, roll-over or transfer to an FHSA in respect of a new or existing FHSA holder 43B in the capacity of FHSA provider, the FHSA holder, or if the FHSA cashing the whole or a part of an holder has died, the person, or each interest held by an FHSA holder of the persons, who receives the cashed whole or a cashed part of the relevant interest 19 Australian Prudential Regulation Authority Act 1998 20 5 Subsection 3(1) (after paragraph (f) of the definition of 21 prudential regulation framework law) 22 Insert: [Page Break] 2 6 At the end of subsection 3(2) 3 Add: 4 ; (h) an FHSA provider, within the meaning of the First Home 5 Saver Accounts Act 2008. 6 7 Subsection 3(2) (note) 7 Omit "and RSA is short for retirement savings account", substitute ", 8 RSA is short for retirement savings account and FHSA is short for first 9 home saver account". 10 8 Subsection 56(1) (at the end of the definition of protected 11 document) 12 Add: 13 ; or (f) a document given or produced under, or for the purposes of, a 14 provision of the First Home Saver Accounts Act 2008: 15 (i) administered by the Commissioner of Taxation; or 16 (ii) being applied for the purposes of the administration of a 17 provision administered by the Commissioner of 18 Taxation. 19 9 Subsection 56(1) (at the end of the definition of protected 20 information) 21 Add: 22 ; or (f) information given or produced under, or for the purposes of, 23 a provision of the First Home Saver Accounts Act 2008: 24 (i) administered by the Commissioner of Taxation; or 25 (ii) being applied for the purposes of the administration of a 26 provision administered by the Commissioner of 27 Taxation. 28 Banking Act 1959 29 10 Paragraph 11CA(1)(a) 30 Repeal the paragraph, substitute: 31 (a) the body corporate has contravened a provision of: 32 (i) this Act; or B08PW251.v06.doc 21/4/2008 4:41 PM [Page Break] 2 (iii) the First Home Saver Accounts Act 2008; or 3 11 Paragraph 11CA(1)(c) 4 Omit "or the Financial Sector (Collection of Data) Act 2001", substitute 5 ", the Financial Sector (Collection of Data) Act 2001 or the First Home 6 Saver Accounts Act 2008". 7 12 Paragraph 11CA(2)(aa) 8 Repeal the paragraph, substitute: 9 (aa) to comply with the whole or a part of: 10 (i) this Act; or 11 (ii) the Financial Sector (Collection of Data) Act 2001; or 12 (iii) the First Home Saver Accounts Act 2008; 13 13 At the end of section 18A 14 Add: 15 (5) For the purposes of this section, treat a reference in this section to a 16 matter in relation to which APRA has a power or function under 17 this Act as including a matter in relation to which APRA has a 18 power or function under the First Home Saver Accounts Act 2008 19 in respect of ADIs. 20 14 Section 51A (definition of reviewable decision of APRA) 21 After "this Act", insert "or the First Home Saver Accounts Act 2008". 22 15 At the end of section 62A 23 Add: 24 (4) For the purposes of this section, treat a reference in this section to 25 this Act as including a reference to the First Home Saver Accounts 26 Act 2008. 27 Life Insurance Act 1995 28 16 Subparagraph 14(2)(a)(ii) 29 Omit "may be; and", substitute "may be; or". 30 17 At the end of paragraph 14(2)(a) [Page Break] 2 (iii) in accordance with section 31 of the First Home Saver 3 Accounts Act 2008; and 4 18 Subparagraph 14(4)(b)(ii) 5 Omit "may be.", substitute "may be; or". 6 19 At the end of paragraph 14(4)(b) 7 Add: 8 (iii) in accordance with section 31 of the First Home Saver 9 Accounts Act 2008. 10 20 Section 74 11 Before "In", insert "(1)". 12 21 At the end of section 74 13 Add: 14 (2) For the purposes of sections 88, 88A, 98 and 98A of this Part, treat 15 a reference in those sections to this Act as including a reference to 16 the First Home Saver Accounts Act 2008. 17 22 Section 126 18 Before "In", insert "(1)". 19 23 At the end of section 126 20 Add: 21 (2) For the purposes of this Part, treat a reference in this Part to this 22 Act as including a reference to the First Home Saver Accounts Act 23 2008. 24 24 At the end of section 230A 25 Add: 26 (14) For the purposes of this Part, treat a reference in this section to this 27 Act as including a reference to the First Home Saver Accounts Act 28 2008. 29 25 At the end of section 230B B08PW251.v06.doc 21/4/2008 4:41 PM [Page Break] 2 (11) For the purposes of this Part, treat a reference in this section to this 3 Act as including a reference to the First Home Saver Accounts Act 4 2008. 5 26 Subsection 236(1) (definition of reviewable decision) 6 Omit "subsection (1A)", substitute "subsections (1A) and (1AA)". 7 27 After subsection 236(1) 8 Insert: 9 (1AA) For the purposes of this section, treat a reference in this section to a 10 reviewable decision as including a reference to a decision of the 11 Regulator (within the meaning of the First Home Saver Accounts 12 Act 2008) to which, under that Act, this section applies. 13 Social Security Act 1991 14 28 After paragraph 8(8)(b) 15 Insert: 16 (ba) any return on a person's investment in an FHSA (within the 17 meaning of the First Home Saver Accounts Act 2008); 18 29 Subsection 9(1) (at the end of the definition of financial 19 investment) 20 Add: 21 ; but does not include an investment in an FHSA (within the 22 meaning of the First Home Saver Accounts Act 2008). 23 30 Subsection 9(1) (at the end of the definition of investment) 24 Add: 25 ; or (c) in relation to an investment in an FHSA (within the meaning 26 of the First Home Saver Accounts Act 2008)--has the 27 meaning given by subsection (9B). 28 31 Subsection 9(1) (at the end of the definition of return) 29 Add: 30 ; or (c) in relation to an investment in an FHSA (within the meaning 31 of the First Home Saver Accounts Act 2008)--means any [Page Break] 2 or not distributed, in the value or amount of the investment. 3 32 After paragraph 9(1C)(ca) 4 Insert: 5 (cb) an investment in an FHSA (within the meaning of the First 6 Home Saver Accounts Act 2008); 7 33 After subsection 9(9A) 8 Insert: 9 (9B) For the purposes of this Act, a person has an investment in an 10 FHSA (within the meaning of the First Home Saver Accounts Act 11 2008) if the person has benefits in the FHSA (whether the benefits 12 are attributable to amounts paid by the person or someone else). 13 34 Subsection 10B(2) (after paragraph (c) of the definition of 14 trust) 15 Insert: 16 (ca) an FHSA trust (within the meaning of the First Home Saver 17 Accounts Act 2008); or 18 35 After paragraph 1118(1)(f) 19 Insert: 20 (fa) the value of the person's investment in an FHSA (within the 21 meaning of the First Home Saver Accounts Act 2008); 22 36 At the end of subsection 1207P(1) 23 Add: 24 ; or (d) the trust is an FHSA trust (within the meaning of the First 25 Home Saver Accounts Act 2008). 26 Superannuation (Government Co-contribution for Low 27 Income Earners) Act 2003 28 37 At the end of paragraph 7(1)(c) 29 Add: 30 ; (v) a payment from an FHSA required under section 22 or 31 34 of the First Home Saver Accounts Act 2008; B08PW251.v06.doc 21/4/2008 4:41 PM [Page Break] 2 of the First Home Saver Accounts Act 2008). 3 Superannuation Industry (Supervision) Act 1993 4 38 At the end of subsection 29G(2) 5 Add: 6 ; (v) where the RSE licensee is an FHSA provider (within the 7 meaning of the First Home Saver Accounts Act 2008)-- 8 circumstances exist as described in paragraph 107(2)(b), (c), 9 (d), (e) or (f) of that Act. 10 Veterans' Entitlements Act 1986 11 39 After paragraph 5H(8)(i) 12 Insert: 13 (ia) any return on a person's investment in an FHSA (within the 14 meaning of the First Home Saver Accounts Act 2008); 15 40 Subsection 5J(1) (at the end of the definition of financial 16 investment) 17 Add: 18 ; but does not include an investment in an FHSA (within the 19 meaning of the First Home Saver Accounts Act 2008). 20 41 Subsection 5J(1) (at the end of the definition of 21 investment) 22 Add: 23 ; or (c) in relation to an investment in an FHSA (within the meaning 24 of the First Home Saver Accounts Act 2008)--has the 25 meaning given by subsection (6B). 26 42 Subsection 5J(1) (after paragraph (a) of the definition of 27 return) 28 Insert: 29 (aa) in relation to an investment in an FHSA (within the meaning 30 of the First Home Saver Accounts Act 2008)--means any 31 increase, whether of a capital or income nature and whether [Page Break] 2 or 3 43 After paragraph 5J(1C)(ca) 4 Insert: 5 (cb) an investment in an FHSA (within the meaning of the First 6 Home Saver Accounts Act 2008); 7 44 After subsection 5J(6A) 8 Insert: 9 (6B) For the purposes of this Act, a person has an investment in an 10 FHSA (within the meaning of the First Home Saver Accounts Act 11 2008) if the person has benefits in the FHSA (whether the benefits 12 are attributable to amounts paid by the person or someone else). 13 45 After paragraph 52(1)(f) 14 Insert: 15 (faa) the value of the person's investment in an FHSA (within the 16 meaning of the First Home Saver Accounts Act 2008); 17 46 At the end of subsection 52ZZB(1) 18 ; or (d) the trust is an FHSA trust (within the meaning of the First 19 Home Saver Accounts Act 2008). B08PW251.v06.doc 21/4/2008 4:41 PM [Page Break] 2 Schedule 4--Amendments to change 3 references to virtual PST assets etc. 4 5 1 Amendment of Acts 6 The specified provisions of the Acts listed in this Schedule are amended 7 by omitting "virtual PST" and substituting "complying 8 superannuation/FHSA". 9 Income Tax Assessment Act 1936 10 2 Subparagraph 26AH(7)(ba)(i) 11 3 Section 102M (paragraph (b) of the definition of eligible 12 policy) 13 4 Paragraph 519A(a) 14 5 Subsection 519B(1) 15 Note: The heading to subsection 519B(1) is altered by omitting "Virtual PST" and substituting 16 "Complying superannuation/FHSA". 17 6 Subparagraph 519B(3)(b)(i) 18 7 Subparagraph 519B(4)(b)(i) 19 Income Tax Assessment Act 1997 20 8 Paragraph 102-3(2)(d) 21 9 Subsection 110-36(3) 22 10 Subsection 114-5(3) 23 11 Paragraph 115-10(d) 24 12 Subparagraph 115-100(b)(ii) 25 13 Subparagraph 115-280(1)(a)(ii) [Page Break] 2 15 Paragraph 118-350(2)(b) 3 16 Paragraph 295-100(2)(a) 4 17 Paragraph 320-35(a) 5 18 Section 320-45 6 19 Subsection 320-55(1) 7 20 Paragraph 320-55(2)(a) 8 21 Section 320-65 9 22 Paragraph 320-120(1)(a) 10 23 Subsections 320-125(1), (2) and (3) (wherever occurring) 11 24 Paragraph 320-137(2)(a) (wherever occurring) 12 25 Paragraph 320-137(4)(b) (wherever occurring) 13 26 Subparagraphs 320-137(4)(e)(ii) and (iii) 14 27 Subparagraphs 320-141(1)(c)(i) and (ii) 15 28 Subparagraphs 320-143(1)(c)(i) and (ii) 16 29 Subparagraphs 320-143(2)(a)(i) and (ii) 17 30 Subsections 320-170(1), (1A) and (2) 18 31 Paragraph 320-170(3)(a) 19 32 Subsection 320-170(5) 20 33 Paragraphs 320-175(1)(a) and (b) 21 34 Subsection 320-180(1) (first occurring) 22 35 Paragraph 320-180(1)(a) B08PW251.v06.doc 21/4/2008 4:41 PM [Page Break] 2 37 Subsection 320-180(3) (first occurring) 3 38 Paragraph 320-180(3)(a) 4 39 Paragraph 320-180(4)(a) 5 40 Subsection 320-185(1) (first occurring) 6 41 Paragraph 320-185(1)(a) 7 42 Subsection 320-185(3) (last occurring) 8 43 Subsection 320-190(1) (wherever occurring) 9 44 Paragraphs 320-195(3)(a), (b) and (c) (wherever occurring) 10 45 Paragraphs 320-195(4)(b) and (c) (wherever occurring) 11 46 Subsection 320-315(1) (wherever occurring) 12 47 Paragraph 320-320(2)(a) 13 48 Subparagraph 713-510(1)(a)(i) 14 49 Paragraph 713-510(1)(b) 15 50 Subparagraph 713-510(2)(a)(i) 16 51 Paragraph 713-510(2)(b) 17 52 Paragraph 713-515(1)(a) 18 53 Subsection 713-515(4) 19 54 Subsections 713-520(2) and (6) 20 55 Section 713-525 (note) (wherever occurring) 21 56 Subparagraph 713-530(1)(b)(ii) 22 57 Paragraphs 713-535(1)(c) and (2)(b) [Page Break] 2 59 Subparagraph 713-570(1)(c)(ii) 3 60 Paragraph 713-575(2)(a) 4 61 Subsections 713-580(3) and (7) 5 62 Section 713-585 (note) (wherever occurring) 6 63 Subsection 995-1(1) (paragraph (a) of the definition of 7 ordinary investment policy) 8 Taxation Administration Act 1953 9 64 Paragraph 288-70(2)(a) in Schedule 1 10 Note: The headings to subsections 288-70(1) and (2) in Schedule 1 are altered by omitting 11 "Virtual PST" and substituting "Complying superannuation/FHSA asset pool". B08PW251.v06.doc 21/4/2008 4:41 PM [Page Break] 2 Schedule 5--Amendments to change 3 references to virtual PST 4 5 1 Amendment of Act 6 The specified provisions of the Act listed in this Schedule are amended 7 by omitting "virtual PST" and substituting "complying 8 superannuation/FHSA asset pool". 9 Income Tax Assessment Act 1997 10 2 Section 109-60 (table item 11) 11 3 Section 112-97 (table item 21) 12 4 Paragraphs 320-15(1)(da), (db) and (e) (wherever occurring) 13 5 Subsections 320-87(1) and (2) 14 6 Paragraphs 320-87(3)(a) and (b) 15 7 Paragraphs 320-137(2)(b) and (c) 16 8 Paragraph 320-170(7)(a) 17 9 Subparagraph 320-170(7)(a)(ii) 18 10 Paragraph 320-170(7)(b) 19 11 Subsection 320-175(1) 20 12 Paragraph 320-175(2)(a) 21 13 Subsection 320-180(1) (last occurring) 22 14 Subsection 320-180(3) (last occurring) 23 15 Subsection 320-185(1) (last occurring) 24 16 Subsection 320-185(2) [Page Break] 2 18 Subsection 320-185(4) 3 19 Subsections 320-195(1) and (2) 4 20 Subparagraph 320-195(3)(b)(ii) 5 21 Subsection 320-195(3) (last occurring) 6 22 Paragraph 320-195(4)(a) 7 23 Subsection 320-195(4) (last occurring) 8 24 Paragraphs 320-200(1)(a) and (b) 9 25 Subsection 320-200(3) 10 26 Paragraph 713-570(1)(b) B08PW251.v06.doc 21/4/2008 4:41 PM [Page Break] 2 Schedule 6--Amendments to change 3 references to complying 4 superannuation class 5 6 1 Amendment of Acts 7 The specified provisions of the Acts listed in this Schedule are amended 8 by omitting "complying superannuation class" and substituting 9 "complying superannuation/FHSA class". 10 Income Tax Assessment Act 1997 11 2 Subsection 4-15(2) (note) 12 3 Section 320-1 13 4 Subparagraph 320-5(2)(c)(i) 14 5 Paragraph 320-35(b) 15 6 Subsection 320-125(3) (note) 16 7 Section 320-130 17 8 Paragraphs 320-131(1)(a) and (b) 18 9 Subsection 320-133(2) 19 10 Paragraph 320-137(1)(c) 20 11 Paragraph 320-149(1)(b) 21 12 Subsection 320-149(2) (examples 1 and 2) 22 13 Subparagraph 713-530(1)(b)(i) 23 14 Paragraph 713-535(2)(a) 24 15 Subparagraph 713-570(1)(c)(i) [Page Break] 2 loss) (note 3) 3 Income Tax Rates Act 1986 4 17 Paragraph 23A(b) 5 Taxation Administration Act 1953 6 18 Paragraph 45-120(2A)(b) in Schedule 1 7 19 Subsection 45-290(3) in Schedule 1 8 20 Subsection 45-330(3) in Schedule 1 (method statement, 9 steps 4, 5 and 6) (wherever occurring) 10 21 Subsection 45-370(3) in Schedule 1 (method statement, 11 step 2) B08PW251.v06.doc 21/4/2008 4:41 PM [Page Break] 2 Schedule 7--Other amendments relating to 3 changes of references to virtual PST 4 etc. 5 6 Income Tax Assessment Act 1936 7 1 Subsection 124ZM(6) (definition of complying 8 superannuation class of taxable income) 9 Repeal the definition. 10 2 Subsection 124ZM(6) (before the definition of venture 11 capital franked part) 12 Insert: 13 complying superannuation/FHSA class of taxable income is the 14 life assurance company's complying superannuation/FHSA class 15 of taxable income, within the meaning of subsection 995-1(1) of 16 the Income Tax Assessment Act 1997, for the year of income in 17 which the distribution is made. 18 3 Section 470 (definition of virtual PST asset) 19 Repeal the definition. 20 4 Section 470 21 Insert: 22 complying superannuation/FHSA asset has the same meaning as 23 in the Income Tax Assessment Act 1997. 24 5 Division 11A of Part XI (heading) 25 Repeal the heading, substitute: [Page Break] 2 superannuation/FHSA assets, segregated exempt 3 assets and interests held by complying 4 superannuation entities etc. 5 Income Tax Assessment Act 1997 6 6 Subsection 210-175(2) (definition of complying 7 superannuation class of taxable income) 8 Repeal the definition. 9 7 Subsection 210-175(2) (before the definition of tax offset to 10 which the entity would otherwise be entitled) 11 Insert: 12 complying superannuation/FHSA class of taxable income means 13 the *complying superannuation/FHSA class of taxable income of 14 the company for the income year in which the *distribution is 15 made. 16 8 Section 320-45 (heading) 17 Repeal the heading, substitute: 18 320-45 Tax treatment of gains or losses from CGT events in relation 19 to complying superannuation/FHSA assets 20 9 Section 320-55 (heading) 21 Repeal the heading, substitute: 22 320-55 Deduction for life insurance premiums where liabilities 23 under life insurance policies are to be discharged from 24 complying superannuation/FHSA assets 25 10 Section 320-87 (heading) 26 Repeal the heading, substitute: B08PW251.v06.doc 21/4/2008 4:41 PM [Page Break] 2 superannuation/FHSA asset pool 3 11 Paragraph 320-107(1)(b) 4 Omit "virtual PST life insurance policy", substitute "complying 5 superannuation/FHSA life insurance policy". 6 12 Subsection 320-107(3) (formula) 7 Repeal the formula, substitute: Tax saving amount 8 Complying superannuation/FHSA class rate 9 13 Subsection 320-107(3) (definition of complying 10 superannuation class rate) 11 Repeal the definition. 12 14 Subsection 320-107(3) 13 After "where:", insert: 14 complying superannuation/FHSA class rate is the rate of tax 15 imposed on the *complying superannuation/FHSA class of the 16 company's taxable income for the income year. 17 15 Section 320-120 (heading) 18 Repeal the heading, substitute: 19 320-120 Capital losses from assets other than complying 20 superannuation/FHSA assets or segregated exempt assets 21 16 Section 320-125 (heading) 22 Repeal the heading, substitute: 23 320-125 Capital losses from complying superannuation/FHSA assets 24 17 Section 320-137 (heading) 25 Repeal the heading, substitute: [Page Break] 2 18 Subsection 320-137(1) 3 Omit "complying superannuation class", substitute "complying 4 superannuation/FHSA class". 5 19 Section 320-141 (heading) 6 Repeal the heading, substitute: 7 320-141 Tax loss--complying superannuation/FHSA class 8 20 Subsection 320-141(1) (heading) 9 Repeal the heading, substitute: 10 Working out a tax loss of the complying superannuation/FHSA 11 class 12 21 Subsection 320-141(1) 13 Omit "complying superannuation class", substitute "complying 14 superannuation/FHSA class". 15 22 Subsection 320-141(2) (heading) 16 Repeal the heading, substitute: 17 Deducting a tax loss of the complying superannuation/FHSA class 18 23 Subsection 320-141(2) 19 Omit "complying superannuation class", substitute "complying 20 superannuation/FHSA class". 21 24 Subdivision 320-F (heading) 22 Repeal the heading, substitute: 23 Subdivision 320-F--Complying superannuation/FHSA asset 24 pool 25 25 Section 320-165 26 Omit "virtual PST", substitute "complying superannuation/FHSA 27 asset pool". B08PW251.v06.doc 21/4/2008 4:41 PM [Page Break] 2 Repeal the heading, substitute: 3 320-170 Establishment of complying superannuation/FHSA asset 4 pool 5 27 Subsection 320-170(1) (note) 6 Repeal the note. 7 28 Subsection 320-170(6) 8 Repeal the subsection, substitute: 9 (6) The assets from time to time segregated are together to be known 10 as the complying superannuation/FHSA asset pool and each asset 11 from time to time included among those assets is to be known as a 12 complying superannuation/FHSA asset. 13 29 Section 320-175 (heading) 14 Repeal the heading, substitute: 15 320-175 Valuations of complying superannuation/FHSA assets and 16 complying superannuation/FHSA liabilities for each 17 valuation time 18 30 Subsection 320-180(1) (heading) 19 Repeal the heading, substitute: 20 Transfer from the complying superannuation/FHSA asset pool 21 31 Subsection 320-180(3) (heading) 22 Repeal the heading, substitute: 23 Transfer to the complying superannuation/FHSA asset pool 24 32 Section 320-185 (heading) 25 Repeal the heading, substitute: [Page Break] 2 pool otherwise than as a result of a valuation under 3 section 320-175 4 33 Section 320-190 (heading) 5 Repeal the heading, substitute: 6 320-190 Complying superannuation/FHSA liabilities 7 34 Subsection 320-190(2) 8 Omit "virtual PST liabilities", substitute "complying 9 superannuation/FHSA liabilities". 10 35 Section 320-195 (heading) 11 Repeal the heading, substitute: 12 320-195 Transfer of assets and payment of amounts from a 13 complying superannuation/FHSA asset pool otherwise 14 than as a result of a valuation under section 320-175 15 36 Section 320-200 (heading) 16 Repeal the heading, substitute: 17 320-200 Consequences of transfer of assets to or from complying 18 superannuation/FHSA asset pool 19 37 Section 320-315 (heading) 20 Repeal the heading, substitute: 21 320-315 Complying superannuation/FHSA asset pool and segregated 22 exempt assets 23 38 Section 713-535 (heading) 24 Repeal the heading, substitute: B08PW251.v06.doc 21/4/2008 4:41 PM [Page Break] 2 complying superannuation/FHSA assets of life insurance 3 company 4 39 Subsection 713-545(6) (formula) 5 Repeal the formula, substitute: Complying superannuation/FHSA Surplus mentioned - Amount worked out × class tax rate 6 in paragraph (1)(c) under subsection (4) Ordinary class tax rate 7 40 Subsection 713-545(6) (definition of complying 8 superannuation class tax rate) 9 Repeal the definition. 10 41 Subsection 713-545(6) (before the definition of ordinary 11 class tax rate) 12 Insert: 13 complying superannuation/FHSA class tax rate means the rate of 14 tax in respect of the *complying superannuation/FHSA class of the 15 taxable income of a *life insurance company for the income year in 16 which the joining time occurs (see paragraph 23A(b) of the Income 17 Tax Rates Act 1986). 18 42 Subsection 995-1(1) 19 Insert: 20 complying superannuation/FHSA asset has the meaning given by 21 subsection 320-170(6). 22 43 Subsection 995-1(1) 23 Insert: 24 complying superannuation/FHSA asset pool has the meaning 25 given by subsection 320-170(6). 26 44 Subsection 995-1(1) (all the definitions of complying 27 superannuation class) [Page Break] 2 45 Subsection 995-1(1) 3 Insert: 4 complying superannuation/FHSA class: 5 (a) for a taxable income of a *life insurance company--has the 6 meaning given by section 320-137; or 7 (b) for a *tax loss of a *life insurance company--has the meaning 8 given by section 320-141. 9 46 Subsection 995-1(1) 10 Insert: 11 complying superannuation/FHSA liabilities of a *life insurance 12 company means liabilities of the company under *life insurance 13 policies referred to in subsection 320-190(1). 14 47 Subsection 995-1(1) 15 Insert: 16 complying superannuation/FHSA life insurance policy means a 17 *lifeinsurance policy that: 18 (a) is held by: 19 (i) the trustee of a fund that is a *complying superannuation 20 fund or a *complying approved deposit fund; or 21 (ii) the trustee of a *pooled superannuation trust; or 22 (b) is held by an individual and: 23 (i) provides for an *annuity that is not presently payable, if 24 the annuity was purchased out of a *superannuation 25 lump sum or an *employment termination payment; or 26 (ii) is so held in the benefit fund of a *friendly society, 27 being a fund that is a regulated superannuation fund 28 under the Superannuation Industry (Supervision) Act 29 1993; or 30 (c) is held by another *life insurance company and is a 31 *complying superannuation/FHSA asset of that company; or 32 (d) is an *FHSA; 33 and is not an *excluded complying superannuation/FHSA life 34 insurance policy. B08PW251.v06.doc 21/4/2008 4:41 PM [Page Break] 2 Insert: 3 excluded complying superannuation/FHSA life insurance policy 4 means a *life insurance policy that: 5 (a) provides only for *superannuation death benefits, *disability 6 superannuation benefits or temporary disability benefits of a 7 kind referred to in paragraph 295-460(c), that are not 8 *participating benefits; or 9 (b) is an *exempt life insurance policy. 10 49 Subsection 995-1(1) (definition of virtual pooled 11 superannuation trust) 12 Repeal the definition. 13 50 Subsection 995-1(1) (definition of virtual PST) 14 Repeal the definition. 15 51 Subsection 995-1(1) (definition of virtual PST asset) 16 Repeal the definition. 17 52 Subsection 995-1(1) (definition of virtual PST liabilities) 18 Repeal the definition. 19 53 Subsection 995-1(1) (definition of virtual PST life 20 insurance policy) 21 Repeal the definition. 22 Income Tax Rates Act 1986 23 54 Subsection 3(1) (definition of complying superannuation 24 class) 25 Repeal the definition. 26 55 Subsection 3(1) 27 Insert: [Page Break] 2 life insurance company has the same meaning as in the Income Tax 3 Assessment Act 1997. 4 Taxation Administration Act 1953 5 56 Subsection 45-290(3) in Schedule 1 (note) 6 Repeal the note. B08PW251.v06.doc 21/4/2008 4:41 PM