2008-2009 The Parliament of the Commonwealth of Australia HOUSE OF REPRESENTATIVES Presented and read a first time Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 (Treasury) A Bill for an Act to amend the law relating to taxation, and for other purposes [Page Break] 1 Short title ............................................................................................ 1 2 Commencement .................................................................................. 1 3 Schedule(s) ......................................................................................... 2 Schedule 1--PAYG instalment reduction for s mall businesses etc. 3 Part 1--Main amendments 3 Taxation Administration Act 1953 3 Part 2--Sunsetting on 1 July 2013 5 Taxation Administration Act 1953 5 Part 3--Application 6 Schedule 2--Unclaimed superannuation money 7 Part 1--Amendment of the Superannuation (Unclaimed Money and Lost Members) Act 1999 7 Part 2--Other amendments 22 Financial Transaction Reports Act 1988 22 Income Tax Assessment Act 1997 22 Small Superannuation Accounts Act 1995 28 Superannuation (Government Co-contribution for Low Income Earners) Act 2003 29 Superannuation Guarantee (Administration) Act 1992 30 Taxation Administration Act 1953 30 Part 3--Application, transitional and saving provisions 32 Schedule 3--Reforms to income tests 34 Part 1--Key concepts 34 Income Tax Assessment Act 1936 34 Income Tax Assessment Act 1997 35 Taxation Administration Act 1953 36 Part 2--Amendment of payment summary provisions 38 Taxation Administration Act 1953 38 i Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 [Page Break] A New Tax System (Family Assistance) Act 1999 40 A New Tax System (Medicare Levy Surcharge--Fringe Benefits) Act 1999 40 Child Support (Assessment) Act 1989 42 Higher Education Support Act 2003 42 Income Tax Assessment Act 1936 43 Income Tax Assessment Act 1997 44 Medicare Levy Act 1986 45 Social Security Act 1991 47 Student Assistance Act 1973 50 Superannuation (Government Co-contribution for Low Income Earners) Act 2003 51 Veterans' Entitlements Act 1986 51 Part 4--Exclusion of certain employer superannuation contributions from test for exceptional circumstances relief payment 52 Farm Household Support Act 1992 52 Part 5--Dependency rebates 54 Income Tax Assessment Act 1936 54 Social Security Act 1991 55 Part 6--Application 56 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 ii [Page Break] 2 taxation, and for other purposes 3 The Parliament of Australia enacts: 4 1 Short title 5 This Act may be cited as the Tax Laws Amendment (2009 6 Measures No. 1) Act 2009. 7 2 Commence ment 8 (1) Each provision of this Act specified in column 1 of the table 9 commences, or is taken to have commenced, in accordance with 10 column 2 of the table. Any other statement in column 2 has effect 11 according to its terms. 12 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 1 [Page Break] Column 1 Column 2 Column 3 Provision(s) Commencement Date/Details 1. Sections 1 to 3 The day on which this Act receives the and anything in Royal Assent. this Act not elsewhere covered by this table 2. Schedule 1, The day on which this Act receives the Part 1 Royal Assent. 3. Schedule 1, 1 Ju ly 2013. 1 Ju ly 2013 Part 2 4. Schedule 1, The day on which this Act receives the Part 3 Royal Assent. 5. Schedules 2 The day after this Act receives the Royal and 3 Assent. 1 Note: This table relates only to the provisions of this Act as originally 2 passed by both Houses of the Parliament and assented to. It will not be 3 expanded to deal with provisions inserted in this Act after assent. 4 (2) Column 3 of the table contains additional information that is not 5 part of this Act. Information in this column may be added to or 6 edited in any published version of this Act. 7 3 Schedule(s) 8 Each Act that is specified in a Schedule to this Act is amended or 9 repealed as set out in the applicable items in the Schedule 10 concerned, and any other item in a Schedule to this Act has effect 11 according to its terms. 12 2 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 [Page Break] Main amendments Part 1 1 2 Schedule 1--PAYG instalment reduction for 3 small businesses etc. 4 Part 1--Main amendments 5 Taxation Administration Act 1953 6 1 Before subsection 45-400(1) in Schedule 1 7 Insert: 8 Scope 9 2 Before subsection 45-400(2) in Schedule 1 10 Insert: 11 Working out amount of instalment 12 3 At the end of section 45-400 in Schedule 1 13 Add: 14 Amount reduced in circumstances specified by regulations 15 (3) In the circumstances (if any) specified by the regulations, the 16 amount worked out in accordance with the table in subsection (2) 17 is reduced by the amount worked out under the regulations. 18 (4) Without limiting subsection (3), the regulations may specify 19 circumstances by: 20 (a) specifying the particular * instalment quarter to which the 21 reduction applies; or 22 (b) specifying the kind of payers to whom the reduction applies. 23 (5) In working out, under subsection (2), the amount of your 24 instalment for an * instalment quarter in an income year, assume 25 that there had not been any reductions under subsection (3) for 26 earlier instalment quarters in that year. Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 3 [Page Break] Part 1 Main amendments 1 December 2008 reduction for small business entities 2 (6) If 31 December 2008 occurs in an * instalment quarter in an income 3 year, the amount worked out in accordance with the table in 4 subsection (2) for the instalment quarter is reduced by 20% if you 5 are: 6 (a) a *small business entity for the 2007-08 or 2008-09 income 7 year; or 8 (b) a partner of a partnership that is a small business entity for 9 the 2007-08 or 2008-09 income year; or 10 (c) a beneficiary of a trust that is a small business entity for the 11 2007-08 or 2008-09 income year. 12 (7) In working out, under subsection (2), the amount of your 13 instalment for a later * instalment quarter in the income year, 14 assume that the reduction under subsection (6) had not happened. 15 4 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 [Page Break] Sunsetting on 1 July 2013 Part 2 1 2 Part 2--Sunsetting on 1 July 2013 3 Taxation Administration Act 1953 4 4 Subsections 45-400(6) and (7) in Schedule 1 5 Repeal the subsections. 6 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 5 [Page Break] Part 3 Application 1 2 Part 3--Application 3 5 Application 4 The amendments made by Part 1 of this Schedule apply in relation to 5 instalment quarters in: 6 (a) the 2007-08 income year; and 7 (b) later income years. 8 6 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 [Page Break] Amend ment of the Superannuation (Unclaimed Money and Lost Members) Act 1999 Part 1 1 2 Schedule 2--Unclaimed superannuation 3 money 4 Part 1--Amendment of the Superannuation 5 (Unclaimed Money and Lost Members) Act 6 1999 7 1 Section 7 (simplified outline) 8 Omit At the end of each half-year, substitute At the times 9 determined by the Commissioner. 10 2 Section 7 (simplified outline) 11 Omit On request by a person entitled to receive that money, the 12 Commissioner must pay it to that person., substitute If the 13 Commissioner is satisfied he or she has received such a payment in 14 respect of a person, the Commissioner must pay the amount he or she 15 has received to the person, to a fund identified by the person or, if the 16 person has died, to the person's death beneficiaries or legal personal 17 representative.. 18 3 Section 7 (simplified outline) 19 Omit: 20 Superannuation of persons who used to hold temporary visas 21 The Commissioner of Taxation must give the superannuation 22 provider for a fund a notice identifying a member of the fund if 23 satisfied that the member used to be the holder of a temporary visa, 24 has left Australia and is not an Australian or New Zealand citizen 25 or the holder of a visa. 26 substitute: 27 Superannuation of former temporary residents 28 The Commissioner of Taxation must give the superannuation 29 provider for a fund a notice identifying a member of the fund if 30 satisfied that the member is a former temporary resident. Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 7 [Page Break] Part 1 A mend ment of the Superannuation (Unclaimed Money and Lost Members) Ac t 1999 1 4 Section 7 (simplified outline) 2 After if the member has died, to the member's, insert death 3 beneficiaries or. 4 5 Section 7 (simplified outline) 5 After: 6 If the Commissioner is satisfied he or she has received a payment 7 under this Act for such a member, the Commissioner must pay the 8 amount he or she has received (and interest, in some cases) to the 9 member, to a fund identified by the member or, if the member has 10 died, to the member's legal personal representative. 11 insert: 12 The Commissioner of Taxation may publish, or make available, 13 details relating to amounts paid to the Commissioner in respect of 14 such members. 15 6 Section 8 16 Insert: 17 former temporary resident has the meaning given by 18 section 20AA. 19 7 Section 8 (definition of scheduled statement day) 20 Repeal the definition, substitute: 21 scheduled statement day has the meaning given by: 22 (a) in relation to a statement required by Part 3--section 15A; 23 and 24 (b) in relation to a statement required by Part 3A--section 20B. 25 8 Section 8 26 Insert: 27 unclaimed money day has the meaning given by section 15A. 28 9 Before section 11 29 Insert: 8 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 [Page Break] Amend ment of the Superannuation (Unclaimed Money and Lost Members) Act 1999 Part 1 1 Division 1--Preliminary 2 10 Subsection 13(1) 3 Omit in relation to a fund, substitute for a fund. 4 11 After section 15 5 Insert: 6 15A Setting dates for statements and payme nts 7 The Commissioner may, by legislative instrument, specify: 8 (a) days as being unclaimed money days for the purposes of this 9 Part; and 10 (b) for each unclaimed money day--a day (the scheduled 11 statement day) by the end of which a statement required by 12 this Part, in relation to the unclaimed money day, is to be 13 given to the Commissioner. 14 Division 2--Statement of unclaimed money 15 12 Subsections 16(1) to (6) 16 Repeal the subsections, substitute: 17 Superannuation provider must give statement to Commissioner 18 (1) A superannuation provider must, for each unclaimed money day, 19 give the Commissioner a statement, in the approved form, of 20 information relevant to either or both of the following: 21 (a) all unclaimed money as at the end of the day; 22 (b) the administration of any of the following in connection with 23 the unclaimed money: 24 (i) this Part; 25 (ii) the Superannuation (Departing Australia 26 Superannuation Payments Tax) Act 2007; 27 (iii) the Income Tax Assessment Act 1997, Part 3AA of this 28 Act, and Chapters 2 and 4 in Schedule 1 to the Taxation 29 Administration Act 1953, so far as they relate to this 30 Part or the Superannuation (Departing Australia 31 Superannuation Payments Tax) Act 2007. Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 9 [Page Break] Part 1 A mend ment of the Superannuation (Unclaimed Money and Lost Members) Act 1999 1 Note 1: Subsection (1) does not apply if the superannuation provider gives a 2 statement, and makes a payment, to a State or Territory authority as 3 provided for in section 18 (State or Territory public sector 4 superannuation schemes). 5 Note 2: The Taxation Administration Act 1953 provides for offences and 6 administrative penalties if the statement required under subsection (1) 7 includes false or misleading information: see sections 8K, 8M , 8N and 8 8R of that Act and Division 284 in Schedule 1 to that Act. 9 Note 3: The approved form may also require the statement to include certain 10 tax file numbers: see subsection 25(1) of this Act. 11 (1A) If, at the end of the unclaimed money day, there is no unclaimed 12 money, the statement must say so. 13 Note: If the fund is a regulated superannuation fund that has fewer than 5 14 members, see subsection (2A). 15 (2) The statement must also contain information, required by the form, 16 relevant to any of the unclaimed money that, between the 17 unclaimed money day and the day on which the statement is given 18 to the Commissioner: 19 (a) the superannuation provider pays to a person who is entitled 20 to it; or 21 (b) otherwise ceases to be unclaimed money (other than because 22 the provider pays the money to the Commissioner under 23 subsection 17(1)). 24 (2A) Subsection (1) does not apply if, at the end of the unclaimed 25 money day: 26 (a) the fund is a regulated superannuation fund that has fewer 27 than 5 members; and 28 (b) there is no unclaimed money. 29 When statement must be given 30 (3) The superannuation provider must give the Commissioner the 31 statement by the end of the scheduled statement day for the 32 unclaimed money day. 33 Note 1: The Commissioner may defer the time for giving the statement: see 34 section 388-55 in Schedule 1 to the Taxation Administration Act 1953. 35 Note 2: The Taxation Administration Act 1953 provides for offences and 36 administrative penalties if the statement is not given when it must be: 37 see sections 8C and 8E of that Act and Division 286 in Schedule 1 to 38 that Act. 10 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 [Page Break] Amend ment of the Superannuation (Unclaimed Money and Lost Members) Act 1999 Part 1 1 13 Subsection 16(7) 2 Omit Subsection (1), substitute This section. 3 Note: The following heading to subsection 16(7) is inserted Certain former temporary 4 residents. 5 14 Subsection 16(7) (note) 6 Omit holders of temporary visas, substitute temporary residents. 7 15 After section 16 8 Insert: 9 16A Error or omission in statement 10 Scope 11 (1) This section applies if: 12 (a) a superannuation provider gives the Commiss ioner a 13 statement under section 16; and 14 (b) the superannuation provider becomes aware of a material 15 error, or material omission, in any information in the 16 statement. 17 Superannuation provider must give information 18 (2) The superannuation provider must, in the approved form, give the 19 Commissioner the corrected or omitted information. 20 (3) Information required by subsection (2) must be given no later than 21 30 days after the superannuation provider becomes aware of the 22 error or omission. 23 Note 1: The Commissioner may defer the time for giving the information: see 24 section 388-55 in Schedule 1 to the Taxation Administration Act 1953. 25 Note 2: The Taxation Administration Act 1953 provides for offences and 26 administrative penalties if the information is not given when it must 27 be: see sections 8C and 8E of that Act and Division 286 in Schedule 1 28 to that Act. 29 Division 3--Payment of unclaimed money 30 16 Subsections 17(1) and (2) 31 Repeal the subsections, substitute: Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 11 [Page Break] Part 1 A mend ment of the Superannuation (Unclaimed Money and Lost Members) Act 1999 1 Provider must pay Commissioner 2 (1) A superannuation provider must pay the Commissioner (for the 3 Commonwealth) the amount, in relation to each unclaimed money 4 day, worked out under subsection (1A). The amount is due and 5 payable at the end of the scheduled statement day for the 6 unclaimed money day. 7 Note 1: Subsection (1) does not apply if the superannuation provider gives a 8 statement, and makes a payment, to a State or Territory authority as 9 provided for in section 18 (State or Territory public sector 10 superannuation schemes). 11 Note 2: The amount the superannuation provider must pay the Commissioner 12 is a tax-related liability for the purposes of the Taxation 13 Administration Act 1953. Division 255 in Schedule 1 to that Act deals 14 with payment and recovery of tax-related liabilities. Division 284 in 15 that Schedule provides for administrative penalties connected with 16 such liabilities. 17 Note 3: The Commissioner may defer the time at which the amount is due and 18 payable: see section 255-10 in Schedule 1 to the Taxation 19 Administration Act 1953. 20 Note 4: Section 18A provides for refunds of overpayments by the 21 superannuation provider to the Commissioner. 22 (1A) Work out the amount using the following formula: 23 All unclaimed money as at the Former unclaimed money end of the unclaimed money day 24 where: 25 former unclaimed money means any of the unclaimed money that, 26 between the unclaimed money day and the day on which the 27 superannuation provider gives the statement in relation to the 28 unclaimed money day to the Commissioner under subsection 29 16(1): 30 (a) the superannuation provider pays to a person who is entitled 31 to it; or 32 (b) otherwise ceases to be unclaimed money (other than because 33 the provider pays the money to the Commissioner under 34 subsection (1)). 35 (1B) Subsection (1) does not require the superannuation provider to pay 36 the Commissioner an amount on account of unclaimed money 37 described in subsection 12(1) payable to a person identified in a 38 notice the Commissioner has given the provider under section 20C. 12 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 [Page Break] Amend ment of the Superannuation (Unclaimed Money and Lost Members) Act 1999 Part 1 1 Note: Such money is payable to the Commissioner under section 20F. 2 Payment by Commissioner in respect of person for whom an 3 amount has been paid to Commissioner 4 (1C) Subsections (2) and (2AA) apply in relation to a person if: 5 (a) a superannuation provider paid unclaimed money to the 6 Commissioner under subsection (1) in respect of the person; 7 and 8 (b) the Commissioner is satisfied, on application in the approved 9 form or on the Commissioner's own initiative, that it is 10 possible for the Commissioner to pay the unclaimed money 11 in accordance with subsection (2). 12 (2) The Commissioner must pay the unclaimed money: 13 (a) to a single fund if: 14 (i) the person has not died; and 15 (ii) the person directs the Commissioner to pay to the fund; 16 and 17 (iii) the fund is a complying superannuation plan (within the 18 meaning of the Income Tax Assessment Act 1997); or 19 (b) in accordance with subsection (2AA) if: 20 (i) the person has died; and 21 (ii) the Commissioner is satisfied that, if the superannuation 22 provider had not paid the unclaimed money to the 23 Commissioner, the provider would have been required 24 to pay an amount or amounts (death benefits) to one or 25 more other persons (death beneficiaries) because of the 26 deceased person's death; or 27 (c) to the person's legal personal representative if the person has 28 died but subparagraph (b)(ii) does not apply; or 29 (d) in any other case--to the person. 30 Note: M oney for payments under subsection (2) is appropriated by 31 section 16 of the Taxation Administration Act 1953. 32 (2AA) In a case covered by paragraph (2)(b), the Commissioner must pay 33 the unclaimed money under subsection (2) by paying to each death 34 beneficiary the amount worked out using the following formula: Amount of unclaimed money Death benefit for the death beneficiary 35 payable under subsection (2) Total death benefits Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 13 [Page Break] Part 1 A mend ment of the Superannuation (Unclaimed Money and Lost Members) Act 1999 1 Note: If there is only one death beneficiary, the whole of the unclaimed 2 money is payable to that beneficiary. 3 Note: The heading to section 17 is altered by omitting to Commissioner. 4 17 Subsection 17(2A) 5 Omit Subsection (2) does, substitute Subsections (1C) to (2AA) do. 6 18 Subsections 17(3), (5) and (6) 7 Repeal the subsections. 8 19 After section 17 9 Insert: 10 17A Payme nts of unclaime d money--late payments 11 General interest charge on late payment 12 (1) If any of the amount a superannuation provider must pay under 13 subsection 17(1) remains unpaid after it is due and payable, the 14 superannuation provider is liable to pay general interest charge on 15 the unpaid amount for each day in the period that: 16 (a) starts at the time it is due and payable; and 17 (b) ends at the end of the last day on which either of the 18 following remains unpaid: 19 (i) the amount unpaid when it is due and payable; 20 (ii) general interest charge on any of the amount. 21 Offence of failing to make payment to Commissioner 22 (2) A person commits an offence if: 23 (a) the person is subject to a requirement under subsection 17(1); 24 and 25 (b) the person engages in conduct; and 26 (c) the person's conduct breaches the requirement. 27 Penalty for an offence against subsection (2): 100 penalty units. 28 Division 4--Various rules for special cases 29 20 Subsections 18(2) and (3) 14 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 [Page Break] Amend ment of the Superannuation (Unclaimed Money and Lost Members) Act 1999 Part 1 1 Repeal the subsections, substitute: 2 (2) The superannuation provider does not have to comply with 3 subsection 16(1) or 17(1) in relation to an unclaimed money day if 4 the provider, in accordance with that law of a State or Territory: 5 (a) gives to a State or Territory authority a statement that 6 complies with items 1 and 2 of the table in subsection (4) in 7 relation to the first half year that ends on or after the 8 unclaimed money day; and 9 (b) pays the amount worked out under item 3 of that table to the 10 State or Territory authority. 11 21 Subsection 18(4) (at the end of table item 3, column 12 headed "Effect of provision") 13 Add , as in force just before the commencement of Schedule 5 to the 14 Tax Laws Amendment (2009 Measures No. 1) Act 2009. 15 22 Subsection 18(5) 16 Omit provisions corresponding to the provisions, and with the effects, 17 set out in the following table:, substitute: 18 provisions: 19 (a) corresponding to the provisions of this Act, as in force just 20 before the commencement of Schedule 5 to the Tax Laws 21 Amendment (2009 Measures No. 1) Act 2009, set out in the 22 following table; and 23 (b) with the effects set out in the table: 24 23 After section 18 25 Insert: 26 18A Refund of overpayment made by superannuation provider 27 (1) This section applies if: 28 (a) a superannuation provider for a fund (the first fund) has 29 made a payment under subsection 17(1) in respect of a 30 person; and 31 (b) the Commissioner is satisfied that the amount paid exceeded 32 the amount (if any) that was payable under that subsection in 33 respect of the person. Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 15 [Page Break] Part 1 A mend ment of the Superannuation (Unclaimed Money and Lost Members) Act 1999 1 (2) The Commissioner must pay the excess: 2 (a) to the superannuation provider; or 3 (b) to a superannuation provider for another fund if the 4 Commissioner is satisfied that: 5 (i) the first fund no longer exists; and 6 (ii) the other fund provides rights relating to the person 7 equivalent to those provided by the first fund. 8 Note: M oney for payments under subsection (2) is appropriated by 9 section 16 of the Taxation Administration Act 1953. 10 18B Commissioner may recover overpayme nt 11 (1) This section applies if: 12 (a) the Commissioner makes a payment in respect of a person 13 under, or purportedly under, this Part; and 14 (b) the amount paid exceeds the amount (if any) properly 15 payable under this Part in respect of the person. 16 (2) The Commissioner may recover all or part of the excess from a 17 person (the debtor) described in subsection (3) as a debt due by the 18 debtor to the Commonwealth if the conditions specified in 19 subsection (4) are met. 20 (3) The persons from whom the Commissioner may recover are as 21 follows: 22 (a) the person to whom the payment was made (whether the 23 payment was made to the person in his or her own right or as 24 the legal personal representative of someone else who had 25 died); 26 (b) the superannuation provider for the fund to which the 27 payment was made; 28 (c) if the payment, or an amount wholly or partly attributable to 29 that payment, was transferred to another fund--the 30 superannuation provider for that other fund. 31 (4) The conditions for recovery are that: 32 (a) the Commissioner gave the debtor written notice, as 33 prescribed by the regulations, of the proposed recovery and 34 the amount to be recovered; and 35 (b) at least 28 days have passed since the notice was given; and 16 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 [Page Break] Amend ment of the Superannuation (Unclaimed Money and Lost Members) Act 1999 Part 1 1 (c) the amount recovered is not more than the amount specified 2 in the notice. 3 (5) Despite subsections (2) and (3), if the Commissioner gives a notice 4 described in paragraph (4)(a) to a superannuation provider for a 5 fund, and the fund does not hold an amount attributable to the 6 payment, the Commissioner cannot recover from the 7 superannuation provider. 8 (6) The Commissioner may revoke a notice described in 9 paragraph (4)(a). 10 (7) The total of the amounts recovered from different debtors in 11 relation to the same excess must not be more than the excess. 12 (8) A notice described in paragraph (4)(a) is not a legislative 13 instrument. 14 18C Superannuation provider to return payme nt from 15 Commissioner that cannot be credited 16 Scope 17 (1) This section applies if: 18 (a) a payment (the Commissioner's payment) is made to a fund 19 under subsection 17(2) in accordance with a person's 20 direction; and 21 (b) the superannuation provider for the fund has not credited the 22 payment to an account for the benefit of the person by the 23 time (the repayment time) that is the end of the 28th day after 24 the day on which the Commissioner's payment was made. 25 Repayment 26 (2) The superannuation provider is liable to repay the Commissioner's 27 payment to the Commonwealth. The repayment is due and payable 28 at the repayment time. 29 Note: The amount the superannuation provider is liable to repay is a 30 tax-related liability for the purposes of the Taxation Administration 31 Act 1953. Division 255 in Schedule 1 to that Act deals with payment 32 and recovery of tax-related liabilities. Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 17 [Page Break] Part 1 A mend ment of the Superannuation (Unclaimed Money and Lost Members) Act 1999 1 (3) The superannuation provider must give the Commissioner, in the 2 approved form, information relating to the Commissioner's 3 payment when repaying it. 4 Note: The Taxation Administration Act 1953 provides for offences and 5 administrative penalties if the form is not given when it must be or 6 includes false or misleading information: see sections 8C, 8K and 8N 7 of that Act and Divisions 284 and 286 in Schedule 1 to that Act. 8 General interest charge 9 (4) If any of the amount the superannuation provider is liable to repay 10 under subsection (2) remains unpaid by the superannuation 11 provider after the repayment time, the superannuation provider is 12 liable to pay general interest charge on the unpaid amount for each 13 day in the period that: 14 (a) starts at the repayment time; and 15 (b) ends at the end of the last day on which either of the 16 following remains unpaid: 17 (i) the amount unpaid at the repayment time; 18 (ii) general interest charge on any of the amount. 19 Part 3AA--Register of unclaimed money 20 21 24 Paragraph 19(1)(a) 22 Omit this Part, substitute Part 3. 23 25 Paragraph 19(1)(b) 24 Omit member, substitute person. 25 26 At the end of subsection 19(1) 26 Add: 27 ; and (c) amounts paid to the Commissioner under section 20F 28 (unclaimed superannuation of former temporary residents); 29 and 30 (d) each person in respect of whom there is an amount referred to 31 in paragraph (c) of this subsection. 32 27 Section 20A (simplified outline) 33 Omit: 18 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 [Page Break] Amend ment of the Superannuation (Unclaimed Money and Lost Members) Act 1999 Part 1 1 The Commissioner must give the superannuation provider for a 2 fund a notice if the Commissioner is satisfied that: 3 (a) a person who used to be the holder of a temporary 4 visa has a superannuation interest in the fund; and 5 (b) at least 6 months have passed since the person 6 ceased to hold the visa and left Australia; and 7 (c) the person does not hold a visa and is not a citizen. 8 substitute: 9 The Commissioner must give the superannuation provider for a 10 fund a notice if the Commissioner is satisfied that a former 11 temporary resident has a superannuation interest in the fund. 12 28 After section 20A 13 Insert: 14 20AA Meaning of former temporary resident 15 (1) In this Act: 16 former temporary resident: a person is a former temporary 17 resident if: 18 (a) before, on or after the commencement of this section, the 19 person: 20 (i) was, under the Migration Act 1958, the holder of a 21 temporary visa, except a visa prescribed under 22 subsection (2) of this section, that has ceased to be in 23 effect; and 24 (ii) left Australia after starting to be the holder of the visa 25 (whether the visa ceased to be in effect before, when or 26 after the person left); and 27 (b) at least 6 months have passed since the later of the following 28 events (or either of them if they occurred at the same time): 29 (i) the visa ceased to be in effect; 30 (ii) the person left Australia; and 31 (c) the person: Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 19 [Page Break] Part 1 A mend ment of the Superannuation (Unclaimed Money and Lost Members) Act 1999 1 (i) is not, under that Act, the holder of a temporary visa or 2 permanent visa; and 3 (ii) is neither an Australian citizen nor a New Zealand 4 citizen; and 5 (iii) has not made a valid application for a permanent visa 6 that has not been finally determined under that Act. 7 (2) The regulations may prescribe a visa for the purposes of 8 subparagraph (a)(i) of the definition of former temporary resident 9 in subsection (1). 10 Note: The regulations may prescribe a visa by reference to a class of visas: 11 see subsection 13(3) of the Legislative Instruments Act 2003. 12 29 Paragraphs 20C(1)(b) to (d) 13 Repeal the paragraphs, substitute: 14 (b) the person is a former temporary resident. 15 30 Subparagraph 20E(1)(b)(iii) 16 After the Income Tax Assessment Act 1997,, insert Part 3AA of this 17 Act,. 18 31 Paragraph 20L(1)(a) 19 Omit section 20H, substitute this Part. 20 32 Paragraph 20L(1)(b) 21 Omit that section, substitute this Part. 22 33 Subsection 23(1) (note) 23 After Note, insert 1. 24 34 At the end of subsection 23(1) 25 Add: 26 Note 2: The Taxation Administration Act 1953 provides for offences if the 27 statement includes false or misleading information: see sections 8K, 28 8M , 8N and 8R of that Act. 29 Note 3: The Taxation Administration Act 1953 provides for offences and 30 administrative penalties if the statement is not given when it must be: 31 see sections 8C and 8E of that Act and Division 286 in Schedule 1 to 32 that Act. 33 35 Subsection 23(5) 20 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 [Page Break] Amend ment of the Superannuation (Unclaimed Money and Lost Members) Act 1999 Part 1 1 Repeal the subsection. 2 36 Before paragraph 25(1)(a) 3 Insert: 4 (aa) the superannuation provider; and 5 37 Subsection 26(2) 6 Omit approved form, substitute form approved by a State or 7 Territory authority. 8 38 Section 32 (note 1) 9 Omit , 37. 10 39 Section 37 11 Repeal the section. 12 40 At the end of subsection 46(4) 13 Add: 14 Note 3: See also section 288-35 in Schedule 1 to the Taxation Administration 15 Act 1953. 16 41 At the end of subsection 48(5) 17 Add: 18 Note 4: See also sections 8L, 8M , 8Q, 8R, 8T and 8V of the Taxation 19 Administration Act 1953 and section 288-25 in Schedule 1 to that Act. 20 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 21 [Page Break] Part 2 Other amendments 1 2 Part 2--Other amendments 3 Financial Transaction Reports Act 1988 4 42 Paragraph 18(4B)(ca) 5 Omit section 17 or 18, substitute Part 3 or 3A. 6 Income Tax Assessment Act 1997 7 43 At the end of Subdivision 301-C 8 Add: 9 Miscellaneous 10 301-125 Unclaimed money payme nts by the Commissioner 11 For the purposes of this Subdivision, treat a * superannuation lump 12 sum paid by the Commissioner under subsection 17(2) or 13 section 20H of the Superannuation (Unclaimed Money and Lost 14 Members) Act 1999 as if it were paid from a *superannuation plan. 15 44 Paragraph 306-15(1)(d) 16 Omit for the * superannuation plan, substitute , for the 17 superannuation plan from which the benefit is paid,. 18 45 At the end of subsection 306-15(1) 19 Add: 20 Note: To work out your untaxed plan cap amount in relation to an unclaimed 21 money payment from the Commissioner, see subsection 307-350(2B). 22 46 Subsection 307-5(1) (table item 5, column 2) 23 Omit section 17 or 18, substitute subsection 17(1) or (2), 24 section 18. 25 47 Subsection 307-5(1) (table item 5, column 3) 26 Omit section 17, 18, substitute subsection 17(1) or (2) or 27 section 18. 22 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 [Page Break] Other amend ments Part 2 1 48 Paragraph 307-120(2)(e) 2 After payment under, insert subsection 17(2) or. 3 49 Section 307-142 4 Repeal the section, substitute: 5 307-142 Components of certain unclaimed money payme nts 6 Preliminary 7 (1) This section explains how to work out the * tax free component, and 8 the * taxable component, of a * superannuation benefit that is a 9 payment by the Commissioner under subsection 17(2) or 10 section 20H of the Superannuation (Unclaimed Money and Lost 11 Members) Act 1999 in respect of a person. 12 Tax free component 13 (2) Work out the * tax free component as follows: 14 Method statement 15 Step 1. Work out the amount (the unclaimed amount) (or 16 amounts), set out in column 1 of the table in 17 subsection (3), to which the * superannuation benefit is 18 attributable. 19 Note: A payment made under subsection 17(2) of the 20 Superannuation (Unclaimed Money and Lost Members) 21 Act 1999 is attributable to a single unclaimed amount set 22 out in item 1 or 2 of the table. 23 A payment under section 20H of that Act may be 24 attributable to more than one unclaimed amount. 25 Step 2. Assume that the unclaimed amount (or each unclaimed 26 amount), instead of being paid to the Commissioner, had 27 been paid to the person as the payment (the claimed 28 equivalent) set out in column 2 of the table. 29 Step 3. The * tax free component of the * superannuation benefit 30 consists of so much of the superannuation benefit as is 31 attributable to the amount set out in column 3 of the table Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 23 [Page Break] Part 2 Other amendments 1 for the claimed equivalent (or as is attributable to the 2 amounts set out in that column for the claimed 3 equivalents). 4 (3) This is the table mentioned in subsection (2): 5 Tax free component Item Column 1 Column 2 Column 3 Unclai med amount Clai med Tax free equi valent component of claimed equi valent 1 an amount paid, on or after a * superannuation the * tax free 1 Ju ly 2007, to the benefit paid fro m a component of that Co mmissioner under subsection * superannuation superannuation 17(1) of the Superannuation plan benefit (Unclaimed Money and Lost Members) Act 1999 in respect of the person 2 an amount paid, before 1 July an elig ible the total of the 2007, to the Co mmissioner termination components, of that under subsection 17(1) of the payment (within the elig ible termination Superannuation (Unclaimed mean ing of payment, referred to Money and Lost Members) Act subsection 27A(1) in subsection 1999 in respect of the person of the Income Tax 307-225(2) of this Assessment Act Act 1936, as in force just before 1 Ju ly 2007) 3 an amount paid to the a * superannuation the * tax free Co mmissioner under subsection benefit paid fro m a component of that 20F(1) of the Superannuation * superannuation superannuation (Unclaimed Money and Lost plan benefit Members) Act 1999 in respect of the person (other than an amount referred to in section 65AA of the Superannuation Guarantee (Administration) Act 1992) 6 Note 1: Section 65AA of the Superannuation Guarantee (Administration) Act 7 1992 requires certain shortfall components to be treated as amounts 8 paid to the Commissioner under subsection 20F(1) of the 9 Superannuation (Unclaimed Money and Lost Members) Act 1999. 24 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 [Page Break] Other amend ments Part 2 1 The effect of excluding such shortfall components from item 3 of the 2 table in this subsection is that the taxable component includes so much 3 of the superannuation benefit as is attributable to such a shortfall 4 component. 5 Note 2: The table in this subsection does not cover interest paid by the 6 Commissioner under subsection 20H(2A) of the Superannuation 7 (Unclaimed Money and Lost Members) Act 1999. 8 The effect of this is that the taxable component includes so much of 9 the superannuation benefit as is attributable to such interest. 10 Taxable component 11 (4) The * taxable component is so much (if any) of the * superannuation 12 benefit as is not the * tax free component. 13 50 At the end of subsection 307-145(1) 14 Add: 15 Note: This section does not apply to an unclaimed money payment. 16 51 Section 307-300 17 Repeal the section, substitute: 18 307-300 Certain unclaimed money payme nts 19 Preliminary 20 (1) This section explains how to work out the * element taxed in the 21 fund, and the * element untaxed in the fund, of the * taxable 22 component of a * superannuation benefit that is a payment by the 23 Commissioner under subsection 17(2) or section 20H of the 24 Superannuation (Unclaimed Money and Lost Members) Act 1999. 25 Element taxed in the fund 26 (2) Work out the element taxed in the fund as follows: 27 Method statement 28 Step 1. Work out the amount (the unclaimed amount) (or 29 amounts), set out in column 1 of the table in 30 subsection (3), to which the * taxable component is 31 attributable. Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 25 [Page Break] Part 2 Other amendments 1 Note: A payment made under subsection 17(2) of the 2 Superannuation (Unclaimed Money and Lost Members) 3 Act 1999 is attributable to a single unclaimed amount set 4 out in item 1 or 2 of the table. 5 A payment under section 20H of that Act may be 6 attributable to more than one unclaimed amount. 7 Step 2. Assume that the unclaimed amount (or each unclaimed 8 amount), instead of being paid to the Commissioner, had 9 been paid to the person as the payment (the claimed 10 equivalent) set out in column 2 of the table. 11 Step 3. The element taxed in the fund of the * taxable component 12 consists of so much of the taxable component as is 13 attributable to the amount set out in column 3 of the table 14 for the claimed equivalent (or as is attributable to the 15 amounts set out in that column for the claimed 16 equivalents). 17 (3) This is the table mentioned in subsection (2): 18 Element taxed in the fund Item Column 1 Column 2 Column 3 Unclai med amount Clai med Taxed element of equi valent claimed equi valent 1 an amount paid, on or after a * superannuation the * element taxed in 1 Ju ly 2007, to the benefit paid fro m a the fund of the Co mmissioner under * superannuation * taxable co mponent subsection 17(1) of the plan of that Superannuation (Unclaimed superannuation Money and Lost Members) Act benefit 1999 in respect of the person 2 an amount paid, before 1 July an elig ible the taxed element of 2007, to the Co mmissioner termination the post-June 83 under subsection 17(1) of the payment (within the component of that Superannuation (Unclaimed mean ing of elig ible termination Money and Lost Members) Act subsection 27A(1) payment under 1999 in respect of the person of the Income Tax Subdivision AA of Assessment Act Div ision 2 of Part III 1936, as in force of the Income Tax just before 1 Ju ly Assessment Act 1936, 2007) as in force just before 26 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 [Page Break] Other amend ments Part 2 Element taxed in the fund Item Column 1 Column 2 Column 3 Unclai med amount Clai med Taxed element of equi valent claimed equi valent 1 Ju ly 2007 3 an amount paid to the a * superannuation the * element taxed in Co mmissioner under benefit paid fro m a the fund of the subsection 20F(1) of the * superannuation * taxable co mponent Superannuation (Unclaimed plan of that Money and Lost Members) Act superannuation 1999 in respect of the person benefit (other than an amount referred to in section 65AA of the Superannuation Guarantee (Administration) Act 1992) 1 Note 1: Section 65AA of the Superannuation Guarantee (Administration) Act 2 1992 requires certain shortfall components to be treated as amounts 3 paid to the Commissioner under subsection 20F(1) of the 4 Superannuation (Unclaimed Money and Lost Members) Act 1999. 5 The effect of excluding such shortfall components from item 3 of the 6 table in this subsection is that the element untaxed in the fund includes 7 so much of the superannuation benefit as is attributable to such a 8 shortfall component. 9 Note 2: The table in this subsection does not cover interest paid by the 10 Commissioner under subsection 20H(2A) of the Superannuation 11 (Unclaimed Money and Lost Members) Act 1999. 12 The effect of this is that the element untaxed in the fund of the taxable 13 component includes so much of the superannuation benefit as is 14 attributable to such interest. 15 Element untaxed in the fund 16 (4) The element untaxed in the fund of the * taxable component is so 17 much (if any) of the taxable component as is not the element taxed 18 in the fund. 19 52 After subsection 307-350(2A) 20 Insert: 21 (2B) For the purposes of the application of this section in relation to 22 * superannuation lump sums paid by the Commissioner under 23 subsection 17(2) and section 20H of the Superannuation Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 27 [Page Break] Part 2 Other amendments 1 (Unclaimed Money and Lost Members) Act 1999, treat all such 2 lump sums as if they were paid from a single * superannuation plan. 3 Small Superannuation Accounts Act 1995 4 53 Section 4 5 Insert: 6 leave Australia has the same meaning as in the Migration Act 7 1958. 8 54 Section 14 (simplified outline) 9 Omit: 10 Permanent departure from Australia 11 · The balance of the amount standing to the credit of an 12 individual's account may be debited from the Special Account 13 if: 14 (a) the individual was the holder of an eligible 15 temporary residents visa that has expired or been 16 cancelled; and 17 (b) the individual has permanently departed from 18 Australia. 19 substitute: 20 Former temporary resident 21 · The balance of the amount standing to the credit of an 22 individual's account may be debited from the Special Account 23 if the individual is a former temporary resident. 24 55 Section 62 (simplified outline) 25 Omit: 26 · The balance of an individual's account may be withdrawn if: 28 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 [Page Break] Other amend ments Part 2 1 (a) the individual was the holder of an eligible 2 temporary residents visa that has expired or been 3 cancelled; and 4 (b) the individual has permanently departed from 5 Australia. 6 substitute: 7 · The balance of an individual's account may be withdrawn if 8 the individual is a former temporary resident. 9 56 Paragraph 67A(1)(b) 10 Repeal the paragraph, substitute: 11 (b) the individual satisfies the Commissioner of Taxation that 12 before, on or after the commencement of this section, the 13 individual: 14 (i) was, under the Migration Act 1958, the holder of a 15 temporary visa that has ceased to be in effect; and 16 (ii) left Australia after starting to be the holder of the visa 17 (whether the visa ceased to be in effect before, when or 18 after the person left); and 19 (c) the individual satisfies the Commissioner of Taxation that the 20 individual: 21 (i) is not, under the Migration Act 1958, the holder of a 22 permanent visa; and 23 (ii) is neither an Australian citizen nor a New Zealand 24 citizen. 25 Note: The heading to section 67A is altered by omitting permanent departure from 26 Australia and substituting former temporary resident. 27 57 Subsection 67A(6) 28 Repeal the subsection. 29 Superannuation (Government Co-contribution for Low 30 Income Earners) Act 2003 31 58 Paragraph 6(1)(f) Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 29 [Page Break] Part 2 Other amendments 1 Repeal the paragraph, substitute: 2 (f) the person: 3 (i) is not the holder of a temporary visa under the 4 Migration Act 1958 at any time in the income year; or 5 (ii) at all times when he or she holds such a temporary visa 6 during the income year, is a New Zealand citizen or the 7 holder of a visa prescribed for the purposes of 8 subsection 20AA(2) of the Superannuation (Unclaimed 9 Money and Lost Members) Act 1999. 10 59 Section 56 (definition of eligible temporary resident visa) 11 Repeal the definition. 12 Superannuation Guarantee (Administration) Act 1992 13 60 Subsection 65(1) 14 After section, insert 65AA,. 15 61 After section 65 16 Insert: 17 65AA Shortfall component and forme r te mporary resident 18 (1) This section applies if the employee is a former temporary resident 19 (within the meaning of the Superannuation (Unclaimed Money and 20 Lost Members) Act 1999). 21 (2) The Commissioner must treat the amount of the shortfall 22 component as if it had been paid to the Commissioner by a 23 superannuation provider in respect of the employee under 24 section 20F of that Act. 25 62 Section 65A 26 Omit The Commissioner must, substitute Except in a case covered 27 by section 65AA, the Commissioner must. 28 63 Sections 66 and 67 29 Omit If, substitute Except in a case covered by section 65AA, if. 30 Taxation Administration Act 1953 30 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 [Page Break] Other amend ments Part 2 1 64 Subsection 8AAB(5) (after table item 13A) 2 Insert: 13AA 17A Superannuation (Unclaimed Money and Lost Members) Act 1999 13A B 18C Superannuation (Unclaimed Money and Lost Members) Act 1999 3 65 Subsection 15-10(2) in Schedule 1 4 After 12-FA,, insert 12-FAA,. 5 66 Subsection 250-10(2) in Schedule 1 (after table item 67) 6 Insert: 67A payment of unclaimed 17 Superannuation (Unclaimed money to the Money and Lost Members) Act Co mmissioner 1999 67B payment fro m 18C Superannuation (Unclaimed Co mmissioner that Money and Lost Members) Act cannot be credited 1999 7 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 31 [Page Break] Part 3 Application, transitional and saving provisions 1 2 Part 3--Application, transitional and saving 3 provisions 4 67 Unclaimed money days 5 (1) An unclaimed money day, specified by the Commissioner under 6 paragraph 15A(a) of the Superannuation (Unclaimed Money and Lost 7 Members) Act 1999, must be a day that occurs on or after 1 July 2009. 8 (2) Despite the amendments of sections 16, 17 and 18 of the 9 Superannuation (Unclaimed Money and Lost Members) Act 1999 made 10 by this Schedule, those sections, as in force just before the 11 commencement of this Schedule, continue to apply, from that 12 commencement, in relation to half-years ending before 1 July 2009. 13 68 Errors or omissions in statements 14 Section 16A of the Superannuation (Unclaimed Money and Lost 15 Members) Act 1999, as inserted by this Schedule, does not apply in 16 relation to statements given to the Commissioner under section 16 of 17 that Act as in force just before the commencement of this Schedule. 18 69 Payments made before commencement 19 (1) To avoid doubt, a reference in a law of the Commonwealth to a 20 payment made under subsection 17(1) or (2) of the Superannuation 21 (Unclaimed Money and Lost Members) Act 1999 includes a reference to 22 a payment made under that subsection as in force before the 23 commencement of this Schedule. 24 (2) However, sections 17A, 18A, 18B and 18C of that Act, as inserted by 25 this Schedule, do not apply in relation to such a payment. 26 70 Saving--regulations 27 (1) If, just before the commencement of this Schedule, regulations made for 28 the purposes of subparagraph 20C(1)(b)(i) of the Superannuation 29 (Unclaimed Money and Lost Members) Act 1999 were in force, the 30 regulations have effect, from that commencement, as if they had been 31 made for the purposes of subsection 20AA(2) of that Act, as inserted by 32 this Schedule. 32 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 [Page Break] Application, transitional and saving provisions Part 3 1 (2) If, just before the commencement of this Schedule, regulations made for 2 the purposes of paragraph 20L(4)(a) of the Superannuation (Unclaimed 3 Money and Lost Members) Act 1999 were in force, the regulations have 4 effect, from that commencement, as if they had also been made for the 5 purposes of paragraph 18B(4)(a) of that Act, as inserted by this 6 Schedule. 7 71 Application--the Superannuation (Government 8 Co-contribution for Low Income Earners) Act 2003 9 The amendment of section 6 of the Superannuation (Government 10 Co-contribution for Low Income Earners) Act 2003 made by this 11 Schedule applies in relation to: 12 (a) the 2009-10 income year; and 13 (b) later income years. 14 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 33 [Page Break] Part 1 Key concepts 1 2 Schedule 3--Reforms to income tests 3 Part 1--Key concepts 4 Income Tax Assessment Act 1936 5 1 Subsection 6(1) 6 Insert: 7 adjusted fringe benefits total of a taxpayer for a year of income is 8 the amount worked out using the formula: 9 Taxpayer's reportable 1 ­ FBT rate fringe benefits total 10 where: 11 FBT rate is the rate of tax set by the Fringe Benefits Tax Act 1986 12 for the FBT year (as defined in the Fringe Benefits Tax Assessment 13 Act 1986) beginning on the 1 April just before the start of the year 14 of income. 15 2 Subsection 6(1) 16 Insert: 17 rebate income of an individual for a year of income is the sum of: 18 (a) the individual's taxable income for the year of income; and 19 (b) the individual's reportable superannuation contributions for 20 the year of income; and 21 (c) the individual's total net investment loss for the year of 22 income; and 23 (d) the individual's adjusted fringe benefits total for the year of 24 income. 25 3 Subsection 6(1) (definition of reportable fringe benefits 26 total) 27 Repeal the definition, substitute: 28 reportable fringe benefits total has the same meaning as in the 29 Fringe Benefits Tax Assessment Act 1986. 34 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 [Page Break] Key concepts Part 1 1 4 Subsection 6(1) 2 Insert: 3 reportable superannuation contributions has the same meaning as 4 in the Income Tax Assessment Act 1997. 5 5 Subsection 6(1) 6 Insert: 7 total net investment loss has the same meaning as in the Income 8 Tax Assessment Act 1997. 9 Income Tax Assessment Act 1997 10 6 Subsection 995-1(1) 11 Insert: 12 financial investment includes the following: 13 (a) a *share in a company; 14 (b) an interest in a managed investment scheme (within the 15 meaning of the Corporations Act 2001); 16 (c) a *forestry interest in a * forestry managed investment 17 scheme; 18 (d) a right or option in respect of an investment referred to in 19 paragraph (a), (b) or (c); 20 (e) an investment of a like nature to any of those referred to in 21 paragraphs (a) to (d). 22 7 Subsection 995-1(1) 23 Insert: 24 income for surcharge purposes, for a person and an income year, 25 means the sum of the following: 26 (a) the person's taxable income for the income year 27 (disregarding subsection 271-105(1) of Schedule 2F to the 28 Income Tax Assessment Act 1936); 29 (b) the person's * reportable fringe benefits total (if any) for the 30 income year; 31 (c) the person's * reportable superannuation contributions for the 32 income year; Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 35 [Page Break] Part 1 Key concepts 1 (d) the person's * total net investment loss for the income year; 2 less the amount mentioned in subsection 301-20(3) for the person 3 for the income year if the person is entitled to a tax offset under 4 subsection 301-20(2) for the income year. 5 8 Subsection 995-1(1) 6 Insert: 7 reportable employer superannuation contribution has the 8 meaning given by section 16-182 in Schedule 1 to the Taxation 9 Administration Act 1953. 10 9 Subsection 995-1(1) 11 Insert: 12 reportable superannuation contributions, for an individual and an 13 income year, means the sum of: 14 (a) the individual's * reportable employer superannuation 15 contributions (if any) for the income year; and 16 (b) the individual's deductions (if any) under Subdivision 290-C 17 for the income year. 18 10 Subsection 995-1(1) 19 Insert: 20 total net investment loss of an individual for an income year means 21 the sum of: 22 (a) the amount (if any) by which the individual's deductions for 23 the income year that are attributable to * financial investments 24 exceed the individual's gross income for that year from those 25 investments; and 26 (b) the amount (if any) by which the individual's deductions for 27 the income year that are attributable to rental property exceed 28 the individual's gross income for that year from rental 29 property. 30 Taxation Administration Act 1953 31 11 At the end of Subdivision 16-C in Schedule 1 32 Add: 36 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 [Page Break] Key concepts Part 1 1 16-182 Definition of reportable employer superannuation contribution 2 (1) A reportable employer superannuation contribution, for an 3 individual for an income year, is an amount contributed: 4 (a) by an employer of the individual, or an * associate of the 5 employer, for the individual's benefit in respect of the 6 income year; and 7 (b) to a *superannuation fund or an * RSA; 8 to the extent that either or both of the following paragraphs apply: 9 (c) the individual has or has had, or might reasonably be 10 expected to have or have had, the capacity to influence the 11 size of the amount; 12 (d) the individual has or has had, or might reasonably be 13 expected to have or have had, the capacity to influence the 14 way the amount is contributed so that his or her assessable 15 income is reduced. 16 (2) However, an amount is not a reportable employer superannuation 17 contribution to the extent that it is included in the individual's 18 assessable income for the income year. 19 (3) For the purposes of this section, employer has the expanded 20 meaning given by section 12 of the Superannuation Guarantee 21 (Administration) Act 1992 (assuming that subsection 12(11) of that 22 Act had not been enacted). 23 (4) For the purposes of this section, disregard whether any 24 * superannuation benefits arising from a contribution are payable to 25 a * SIS dependant of the individual if the individual dies before or 26 after becoming entitled to receive the benefits. 27 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 37 [Page Break] Part 2 A mend ment of payment summary provisions 1 2 Part 2--Amendment of payment summary provisions 3 Taxation Administration Act 1953 4 12 At the end of subsection 16-153(2) in Schedule 1 5 Add: 6 ; or (d) the entity made * reportable employer superannuation 7 contributions in respect of a person's employment. 8 Note: The heading to section 16-153 in Schedule 1 is altered by omitting about withholding 9 payments and reportable fringe benefits. 10 13 Subparagraph 16-153(3)(b)(i) in Schedule 1 11 Omit and * reportable fringe-benefit amounts, substitute , * reportable 12 fringe-benefit amounts and * reportable employer superannuation 13 contributions. 14 14 At the end of subsection 16-155(1) in Schedule 1 15 Add: 16 ; or (d) the recipient is an individual and * reportable employer 17 superannuation contributions have been made by the payer, 18 in respect of the individual's employment, during the year. 19 15 At the end of subsection 16-155(2) in Schedule 1 20 Add: 21 ; and (c) if paragraph (1)(d) applies--the total of the * reportable 22 employer superannuation contributions, except so much of 23 those contributions as are covered by a previous payment 24 summary given by the payer to the recipient under 25 section 16-160. 26 16 At the end of paragraph 16-160(1)(c) in Schedule 1 27 Add or. 28 17 After paragraph 16-160(1)(c) in Schedule 1 29 Insert: 38 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 [Page Break] Amend ment of payment summary provisions Part 2 1 (d) * reportable employer superannuation contributions made by 2 the payer, in respect of the recipient's employment, during 3 the financial year; 4 18 After paragraph 16-170(1)(e) in Schedule 1 5 Insert: 6 (f) specifies the * reportable employer superannuation 7 contributions (if any) that it covers and the income year to 8 which those contributions relate; and 9 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 39 [Page Break] Part 3 A mend ment of inco me tests 1 2 Part 3--Amendment of income tests 3 A New Tax System (Family Assistance) Act 1999 4 19 Paragraph 2(1)(d) of Schedule 3 5 Repeal the paragraph, substitute: 6 (d) the individual's total net investment loss (within the meaning 7 of the Income Tax Assessment Act 1997) for that year; 8 20 After paragraph 2(1)(e) of Schedule 3 9 Insert: 10 (f) the individual's reportable superannuation contributions 11 (within the meaning of the Income Tax Assessment Act 1997) 12 for that year; 13 21 Clause 6 of Schedule 3 14 Repeal the clause. 15 A New Tax System (Medicare Levy Surcharge--Fringe 16 Benefits) Act 1999 17 22 Subsection 3(1) 18 Insert: 19 income for surcharge purposes has the same meaning as in the 20 Income Tax Assessment Act 1997. 21 23 Subsection 3(1) (definition of reportable fringe benefits 22 total) 23 Repeal the definition, substitute: 24 reportable fringe benefits total has the same meaning as in the 25 Fringe Benefits Tax Assessment Act 1986. 26 24 Subsection 3(1) (definition of taxable income) 27 Repeal the definition. 28 25 Section 9 40 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 [Page Break] Amend ment of inco me tests Part 3 1 Repeal the section. 2 26 Paragraph 12(1)(a) 3 Repeal the paragraph, substitute: 4 (a) the person's income for surcharge purposes for the year of 5 income exceeds the singles surcharge threshold for the year 6 of income; and 7 27 Paragraph 13(1)(a) 8 Repeal the paragraph, substitute: 9 (a) the person's income for surcharge purposes for the year of 10 income exceeds the person's family surcharge threshold for 11 the year of income; and 12 28 Paragraphs 15(1)(b) and (c) 13 Repeal the paragraphs, substitute: 14 (b) the sum of the person's income for surcharge purposes, and 15 the person's spouse's income for surcharge purposes, for the 16 year of income exceeds the person's family surcharge 17 threshold for the year of income; and 18 (c) the person's income for surcharge purposes for the year of 19 income exceeds $17,309. 20 29 Paragraph 15(2)(a) 21 Omit taxable income, substitute income for surcharge purposes. 22 30 Paragraphs 16(2)(b) and (c) 23 Repeal the paragraphs, substitute: 24 (b) the sum of the person's income for surcharge purposes, and 25 the person's spouse's income for surcharge purposes, for the 26 year of income exceeds the person's family surcharge 27 threshold for the year of income; and 28 (c) the person's income for surcharge purposes for the year of 29 income exceeds $17,309. 30 31 Paragraph 16(3)(b) 31 Repeal the paragraph, substitute: Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 41 [Page Break] Part 3 A mend ment of inco me tests 1 (b) the person's income for surcharge purposes for the year of 2 income exceeds the person's family surcharge threshold for 3 the year of income. 4 32 Paragraph 16(5)(a) 5 Omit taxable income, substitute income for surcharge purposes. 6 Child Support (Assessment) Act 1989 7 33 Subsection 5(1) (definition of net rental property loss) 8 Repeal the definition. 9 34 Paragraph 43(1)(d) 10 Repeal the paragraph, substitute: 11 (d) the parent's total net investment loss (within the meaning of 12 the Income Tax Assessment Act 1997) for that year of 13 income; 14 35 At the end of subsection 43(1) 15 Add: 16 ; (f) the parent's reportable superannuation contributions (within 17 the meaning of the Income Tax Assessment Act 1997) for that 18 year of income. 19 Higher Education Support Act 2003 20 36 Paragraph 154-5(1)(b) 21 Repeal the paragraph, substitute: 22 (b) the person's total net investment loss (within the meaning of 23 the Income Tax Assessment Act 1997) for the income year; 24 and 25 37 Paragraph 154-5(1)(d) 26 Repeal the paragraph, substitute: 27 (d) the person's * exempt foreign income for the income year; 28 and 29 (e) the person's reportable superannuation contributions (within 30 the meaning of the Income Tax Assessment Act 1997) for the 31 income year. 42 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 [Page Break] Amend ment of inco me tests Part 3 1 38 Subsections 154-5(2) and (3) 2 Repeal the subsections. 3 39 Clause 1 of Schedule 1 (definition of rental property loss) 4 Repeal the definition. 5 Income Tax Assessment Act 1936 6 40 Subsection 160AAAA(3) 7 Omit taxpayer has a taxable income for the year of income, substitute 8 taxpayer's rebate income for the year of income is. 9 41 Subsection 160AAAA(4) 10 Repeal the subsection, substitute: 11 (4) If the taxpayer is the spouse of another person, the amount 12 applicable to the taxpayer under subsection (3) is half of the sum 13 of: 14 (a) the taxpayer's rebate income for the year of income; and 15 (b) the taxpayer's spouse's rebate income for the year of income 16 (reduced by any amount included in the spouse's assessable 17 income under section 100); and 18 (c) any share of the net income of a trust estate to which the 19 taxpayer's spouse is presently entitled and that is assessed 20 under section 98. 21 42 Subsection 160AAAB(3) 22 Omit has a taxable income, substitute has an amount applicable 23 under subsection (4) or (5). 24 43 Subsections 160AAAB(4) and (5) 25 Repeal the subsections, substitute: 26 (4) If the beneficiary is not the spouse of another person, the amount 27 applicable to the beneficiary under subsection (3) is the amount 28 that would be the beneficiary's rebate income for the year of 29 income if the beneficiary's taxable income for that year were the 30 beneficiary's share of the net income of the trust estate. Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 43 [Page Break] Part 3 A mend ment of inco me tests 1 (5) If the beneficiary is the spouse of another person, the amount 2 applicable to the beneficiary under subsection (3) is half the sum 3 of: 4 (a) the amount that would be applicable to the beneficiary under 5 subsection (3) if the beneficiary were not the spouse of 6 another person; and 7 (b) the beneficiary's spouse's rebate income for the year of 8 income (reduced by any amount included in the spouse's 9 assessable income under section 100); and 10 (c) any share of the net income of a trust estate to which the 11 beneficiary's spouse is presently entitled and that is assessed 12 under section 98. 13 Income Tax Assessment Act 1997 14 44 After paragraph 61-570(1)(b) 15 Insert: 16 (c) the total of your * reportable employer superannuation 17 contributions for the year; 18 45 At the end of paragraph 61-580(1)(d) 19 Add: 20 ; (v) your * reportable superannuation contributions for the 21 current year; 22 (vi) your * total net investment loss for the current year. 23 46 At the end of subsection 290-160(2) 24 Add: 25 ; (c) the total of your * reportable employer superannuation 26 contributions for the income year. 27 47 Paragraph 290-230(2)(c) 28 Repeal the paragraph, substitute: 29 (c) the total of your spouse's: 30 (i) assessable income; and 31 (ii) * reportable fringe benefits total; and 32 (iii) * reportable employer superannuation contributions; 33 for the income year is less than $13,800; and 44 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 [Page Break] Amend ment of inco me tests Part 3 1 Medicare Levy Act 1986 2 48 Subsection 3(1) 3 Insert: 4 income for surcharge purposes has the same meaning as in the 5 Income Tax Assessment Act 1997. 6 49 Subsection 3(1) (definition of reportable fringe benefits 7 total) 8 Repeal the definition. 9 50 Subsection 3(2) 10 Repeal the subsection, substitute: 11 (2) In this Act, a reference to income for surcharge purposes, net 12 income or taxable income is to be read as a reference to that term 13 for the year of income. 14 51 Subsection 8B(2) 15 Omit total of a person's taxable income and reportable fringe benefits 16 total (if any), substitute person's income for surcharge purposes. 17 Note: The heading to section 8B is altered by omitting Increase in levy and substituting 18 Levy surcharge. 19 52 Subsection 8C(3) 20 Omit If the total of a person's taxable income and reportable fringe 21 benefits total (if any) exceeds the family surcharge threshold, 22 substitute If the person's income for surcharge purposes exceeds the 23 person's family surcharge threshold. 24 Note: The heading to section 8C is altered by omitting Increase in levy and substituting 25 Levy surcharge. 26 53 Paragraphs 8D(3)(b) and (c) 27 Repeal the paragraphs, substitute: 28 (b) the sum of the person's income for surcharge purposes and 29 the person's spouse's income for surcharge purposes exceeds 30 the person's family surcharge threshold; and 31 (c) the person's income for surcharge purposes exceeds $17,309. Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 45 [Page Break] Part 3 A mend ment of inco me tests 1 Note: The heading to section 8D is altered by omitting Increase in levy and substituting 2 Levy surcharge. 3 54 Subparagraphs 8D(4)(a)(i) and (ii) 4 Repeal the subparagraphs, substitute: 5 (i) the sum of the person's income for surcharge purposes 6 and the person's spouse's income for surcharge 7 purposes exceeds the person's family surcharge 8 threshold; 9 (ii) the person's income for surcharge purposes exceeds 10 $17,309; or 11 55 Paragraph 8D(4)(b) 12 Repeal the paragraph, substitute: 13 (b) the person's income for surcharge purposes exceeds the 14 person's family surcharge threshold, if the person is married 15 for only some of the year of income. 16 56 Subsection 8D(5) 17 Repeal the subsection, substitute: 18 (5) In this section: 19 income for surcharge purposes, in relation to the person's spouse, 20 includes any share in the net income of a trust estate: 21 (a) to which the spouse is presently entitled as a beneficiary; and 22 (b) in respect of which the trustee of the trust estate in that 23 capacity is liable to be assessed under section 98 of the 24 Assessment Act. 25 Note: The heading to section 8E is altered by omitting Increase in levy and substituting 26 Levy surcharge. 27 57 Subsection 8F(2) 28 Omit family surcharge threshold, substitute beneficiary's family 29 surcharge threshold. 30 Note: The heading to section 8F is altered by omitting Increase in levy and substituting 31 Levy surcharge. 32 58 Paragraph 8G(2)(b) 33 Repeal the paragraph, substitute: 46 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 [Page Break] Amend ment of inco me tests Part 3 1 (b) the sum of the beneficiary's trust income and the 2 beneficiary's spouse's income for surcharge purposes 3 exceeds the beneficiary's family surcharge threshold; and 4 Note: The heading to section 8G is altered by omitting Increase in levy and substituting 5 Levy surcharge. 6 59 Subparagraph 8G(3)(a)(i) 7 Repeal the subparagraph, substitute: 8 (i) the sum of the beneficiary's trust income and the 9 beneficiary's spouse's income for surcharge purposes 10 exceeds the beneficiary's family surcharge threshold; 11 and 12 60 Paragraph 8G(3)(b) 13 Omit family surcharge threshold, substitute beneficiary's family 14 surcharge threshold. 15 61 Subsection 8G(4) 16 Repeal the subsection, substitute: 17 (4) In this section: 18 income for surcharge purposes, in relation to the benefic iary's 19 spouse, includes any share in the net income of a trust estate: 20 (a) to which the spouse is presently entitled as a beneficiary; and 21 (b) in respect of which the trustee of the trust estate in that 22 capacity is liable to be assessed under section 98 of the 23 Assessment Act. 24 Note: The heading to section 9 is altered by omitting (other than certain levy increases). 25 Social Security Act 1991 26 62 Subsection 10A(2) (definition of net rental property loss) 27 Repeal the definition. 28 63 Subsection 10A(15) 29 Repeal the subsection. 30 64 Subsection 10B(2) (definition of business) 31 Repeal the definition, substitute: Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 47 [Page Break] Part 3 A mend ment of inco me tests 1 business includes: 2 (a) the carrying on of primary production; and 3 (b) the provision of professional services; and 4 (c) the earning of income as a rentier; 5 but does not include employment (whether or not the employment 6 is remunerated by wages or salary). 7 65 Subsection 10B(2) (definition of net passive business 8 loss) 9 Repeal the definition. 10 66 Subsection 10B(2) (definition of passive business) 11 Repeal the definition. 12 67 Subsection 10B(2) 13 Insert: 14 total net investment loss has the same meaning as in the Income 15 Tax Assessment Act 1997. 16 68 Paragraph 10B(3)(e) 17 Omit net passive business loss, substitute total net investment loss. 18 69 Subsection 19AB(2) (definition of rental property loss) 19 Repeal the definition. 20 70 Paragraph 1061ZZFA(1)(b) 21 Repeal the paragraph, substitute: 22 (b) the person's total net investment loss (within the meaning of 23 the Income Tax Assessment Act 1997) for the income year; 24 and 25 71 Paragraph 1061ZZFA(1)(d) 26 Repeal the paragraph, substitute: 27 (d) the person's exempt foreign income for the income year; and 28 (e) the person's reportable superannuation contributions (within 29 the meaning of the Income Tax Assessment Act 1997) for the 30 income year. 48 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 [Page Break] Amend ment of inco me tests Part 3 1 72 Subsections 1061ZZFA(2) and (3) 2 Repeal the subsections. 3 73 Paragraph 1067G-F10(d) 4 Repeal the paragraph, substitute: 5 (d) the parent's total net investment loss for that year; 6 (e) the parent's reportable superannuation contributions (within 7 the meaning of the Income Tax Assessment Act 1997) for that 8 year. 9 74 Point 1067G-F10 (note 5) 10 Repeal the note, substitute: 11 Note 5: For total net investment loss, see subsection 10B(2). 12 75 Subpoint 1067G-F11(4) 13 Repeal the subpoint. 14 76 Point 1067G-F19A 15 Repeal the point. 16 77 Paragraph 1067G-G9(4)(b) 17 Repeal the paragraph, substitute: 18 (b) the reportable superannuation contributions (within the 19 meaning of the Income Tax Assessment Act 1997) of each of 20 the following people for the appropriate tax year: 21 (i) the person; 22 (ii) each family member of the person. 23 78 Subpoint 1067G-G13(1) (formula) 24 Repeal the formula, substitute: GAM 25 2 TNITML TNIL 2 26 79 Subpoint 1067G-G13(2) (definition of NPBL (net passive 27 business loss)) 28 Repeal the definition. Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 49 [Page Break] Part 3 A mend ment of inco me tests 1 80 Subpoint 1067G-G13(2) 2 Insert: 3 TNIL (total net investment loss) means the sum of the total net 4 investment losses of each of the parents of the claimant/recipient in 5 the appropriate tax year. 6 81 Paragraph 1071-3(d) 7 Repeal the paragraph, substitute: 8 (d) the person's total net investment loss (within the meaning of 9 the Income Tax Assessment Act 1997) for that year. 10 82 Point 1071-3 (note 4) 11 Repeal the note. 12 83 Point 1071-8 13 Repeal the point, substitute: 14 Total net investment loss 15 1071-8 For the purposes of this Part, a person's total net investment loss 16 for a particular tax year is the person's accepted estimate of the 17 amount of that loss for that year. 18 Student Assistance Act 1973 19 84 Subsection 3(1) (definition of rental property loss) 20 Repeal the definition. 21 85 Paragraph 12ZL(1)(b) 22 Repeal the paragraph, substitute: 23 (b) the person's total net investment loss (within the meaning of 24 the Income Tax Assessment Act 1997) for the income year; 25 and 26 86 Paragraph 12ZL(1)(d) 27 Repeal the paragraph, substitute: 28 (d) the person's exempt foreign income for the income year; and 50 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 [Page Break] Amend ment of inco me tests Part 3 1 (e) the person's reportable superannuation contributions (within 2 the meaning of the Income Tax Assessment Act 1997) for the 3 income year. 4 87 Subsections 12ZL(2) and (3) 5 Repeal the subsections. 6 Superannuation (Government Co-contribution for Low 7 Income Earners) Act 2003 8 88 At the end of subsection 8(1) 9 Add: 10 ; and (c) the total of the person's reportable employer superannuation 11 contributions (within the meaning of the Income Tax 12 Assessment Act 1997) for the income year. 13 Veterans' Entitlements Act 1986 14 89 Paragraph 118ZZA-3(d) 15 Repeal the paragraph, substitute: 16 (d) the person's total net investment loss (within the meaning of 17 the Income Tax Assessment Act 1997) for that year. 18 90 Point 118ZZA-3 (note 4) 19 Repeal the note. 20 91 Point 118ZZA-7 21 Repeal the point, substitute: 22 Total net investment loss 23 118ZZA-7 For the purposes of this Division, a person's total net investment 24 loss for a particular tax year is the person's accepted estimate of 25 the amount of that loss for that year. 26 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 51 [Page Break] Part 4 Exclusion of certain employer superannuation contributions from test for exceptional circu mstances relief pay ment 1 2 Part 4--Exclusion of certain employer 3 superannuation contributions from test for 4 exceptional circumstances relief payment 5 Farm Household Support Act 1992 6 92 At the end of section 24A 7 Add: 8 Certain superannuation contributions disregarded 9 (9) For the purposes of calculating a rate referred to in subsection (1) 10 for a person who has not reached pension age, disregard 11 contributions made by the person's employer to a superannuation 12 fund or RSA for the person's benefit, other than contributions 13 made by a company or trust if the person is: 14 (a) an attributable stakeholder of the company or trust; or 15 (b) an associate under paragraph 1207C(1)(e), (h), (i) or (j) of the 16 Social Security Act 1991 of a person who is an attributable 17 stakeholder of the company or trust. 18 Note: Those paragraphs of the Social Security Act 1991 cover a relative, a 19 business partner, a spouse or child of a business partner and a trustee 20 of a trust (where the person concerned can benefit from the trust). 21 (10) In subsection (9): 22 attributable stakeholder of a company or trust has the meaning 23 given by section 1207X of the Social Security Act 1991. 24 pension age has the meaning given by section 23 of the Social 25 Security Act 1991. 26 RSA has the meaning given by the Retirement Savings Accounts 27 Act 1997. 28 superannuation fund has the meaning given by section 10 of the 29 Superannuation Industry (Supervision) Act 1993. 30 93 At the end of section 24AA 31 Add: 52 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 [Page Break] Exclusion of certain employer superannuation contributions from test for exceptional circu mstances relief pay ment Part 4 1 Certain superannuation contributions disregarded 2 (11) For the purposes of calculating a rate referred to in subsection (1) 3 for a person who has not reached pension age (within the meaning 4 of section 23 of the Social Security Act 1991), disregard 5 contributions that are disregarded under subsection 24A(9). 6 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 53 [Page Break] Part 5 Dependency rebates 1 2 Part 5--Dependency rebates 3 Income Tax Assessment Act 1936 4 94 Subsection 159J(1AB) 5 Repeal the subsection, substitute: 6 (1AB) A taxpayer is not entitled, in his or her assessment in respect of a 7 year of income, to a rebate under this section in respect of a 8 dependant included in class 1, 2, 5 or 6 in the table in 9 subsection (2) if: 10 (a) for a dependant included in class 1--the taxpayer's adjusted 11 taxable income for the year is more than the income limit for 12 family tax benefit (Part B) for the year; or 13 (b) for a dependant included in class 2, 5 or 6--subsection (1AC) 14 applies to the taxpayer for the year. 15 (1AC) This subsection applies to a taxpayer for a year of income if the 16 sum of: 17 (a) the taxpayer's adjusted taxable income for the year; and 18 (b) if the taxpayer has a spouse during the year--the spouse's 19 adjusted taxable income for the year; and 20 (c) if the taxpayer has a spouse during only part of the year--this 21 amount: 22 Spouse's adjusted taxable Number of days a spouse income for the year Number of days in the year 23 is more than the income limit for family tax benefit (Part B) for the 24 year. 25 Note: If the taxpayer has a different spouse during different parts of the year, 26 the adjusted taxable income of each spouse will be included under 27 paragraph (c). 28 95 Subsection 159J(4) 29 Omit separate net income derived by the dependant in, substitute 30 dependant's adjusted taxable income for. 31 96 Subsection 159J(5) 54 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 [Page Break] Dependency rebates Part 5 1 Omit a separate net income in, substitute an adjusted taxable income 2 for. 3 97 Subsection 159J(6) 4 Insert: 5 adjusted taxable income has the same meaning as in the A New 6 Tax System (Family Assistance) Act 1999, except that, for the 7 purposes of this section, clauses 3 and 3A of Schedule 3 to that Act 8 are taken not to have been enacted. 9 98 Subsection 159J(6) 10 Insert: 11 income limit for family tax benefit (Part B) means the amount 12 specified in subclause 28B(1) of Schedule 1 to the A New Tax 13 System (Family Assistance) Act 1999, as indexed under Part 2 of 14 Schedule 4 to that Act. 15 99 Subsection 159J(6) (definition of separate net income) 16 Repeal the definition. 17 100 Subsection 159L(3B) 18 Repeal the subsection, substitute: 19 (3B) A taxpayer is not entitled, in his or her assessment in respect of a 20 year of income, to a rebate under this section if subsection 21 159J(1AC) applies to the taxpayer for the year. 22 Social Security Act 1991 23 101 Subpoint 1067G-G13(2) (paragraph (b) of the definition of 24 NITML (notional income tax/medicare levy)) 25 Omit a separate net income within the meaning of section 159J of the 26 Income Tax Assessment Act 1936 in that year, substitute an adjusted 27 taxable income within the meaning of the A New Tax System (Family 28 Assistance) Act 1999 in that year. 29 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 55 [Page Break] Part 6 Application 1 2 Part 6--Application 3 102 Application 4 (1) The amendments made by this Schedule apply in relation to income 5 years starting on or after 1 July 2009. 6 (2) However, the amendments do not apply in relation to the following: 7 (a) a claim for baby bonus (within the meaning of the A New Tax 8 System (Family Assistance) Act 1999) if an estimate 9 contained in the claim is for a period beginning before 1 July 10 2009; 11 (b) an election to work out a parent's adjusted taxable income 12 under section 60 of the Child Support (Assessment) Act 1989 13 if the remaining period (within the meaning of subsection 14 60(5) of that Act) concerned starts before 1 July 2009; 15 (c) working out a parent's real remaining period adjusted taxable 16 income under section 64 of the Child Support (Assessment) 17 Act 1989 in relation to an election covered by paragraph (b) 18 of this subitem. 56 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009