2008-2009 The Parliament of the Commonwealth of Australia HOUSE OF REPRESENTATIVES Presented and read a first time Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 (Treasury) A Bill for an Act to amend the law relating to taxation, and for related purposes [Page Break] 1 Short title ............................................................................................ 1 2 Commencement .................................................................................. 1 3 Schedule(s) ......................................................................................... 3 Schedule 1--Tax treatment of payments unde r financial claims scheme 4 Banking Act 1959 4 First Home Saver Accounts Act 2008 5 Income Tax Assessment Act 1936 8 Income Tax Assessment Act 1997 13 Income Tax (Transitional Provisions) Act 1997 21 Insurance Act 1973 23 Taxation Administration Act 1953 24 Schedule 2--CGT concessions for small business 27 Part 1--Main amendments 27 Income Tax Assessment Act 1997 27 Part 2--Other amendments 33 Income Tax Assessment Act 1936 33 Income Tax Assessment Act 1997 33 Tax Laws Amendment (2008 Measures No. 6) Act 2009 38 Part 3--Application provisions 39 Schedule 3--Tax benefits and capital gains tax 41 Income Tax Assessment Act 1997 41 Schedule 4--National Urban Water and Desalination Plan 42 Part 1--Main amendments 42 Income Tax Assessment Act 1936 42 Income Tax Assessment Act 1997 42 Taxation (Interest on Overpayments and Early Payments) Act 1983 49 Part 2--Sunsetting on 1 July 2014 50 Income Tax Assessment Act 1997 50 i Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 [Page Break] Part 1--Amendments commencing on Royal Assent 51 Income Tax Assessment Act 1997 51 Part 2--Other amendments 53 Tax Laws Amendment (Repeal of Inoperative Provisions) Act 2006 53 Part 3--Application provision 54 Schedule 6--ABN changes 55 Part 1--Amendments commencing on Royal Assent 55 A New Tax System (Australian Business Number) Act 1999 55 Product Grants and Benefits Administration Act 2000 61 Taxation Administration Act 1953 61 Part 2--Amendments commencing on Proclamation 62 A New Tax System (Australian Business Number) Act 1999 62 Schedule 7--Fuel tax 68 Part 1--Fuel Tax Act 2006 68 Part 2--Fuel Tax (Consequential and Transitional Provisions) Act 2006 70 Part 3--Application provisions 71 Schedule 8--Government grants for businesses in relation to 2009 Victorian bushfires 72 Part 1--Amendments commencing on Royal Assent 72 Income Tax Assessment Act 1997 72 Part 2--Sunsetting on 1 July 2011 73 Income Tax Assessment Act 1997 73 Part 3--Application provision 74 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 ii [Page Break] 2 taxation, and for related 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. 2) 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. 2) 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 Royal Assent. 3. Schedule 2, Immediately after the commencement of 21 June 2007 item 1 item 3 of Schedule 4 to the Tax Laws Amendment (Small Business) Act 2007. 4. Schedule 2, The day on which this Act receives the items 2 to 39 Royal Assent. 5. Schedule 2, Immediately before the co mmencement of item 40 item 52 of Schedule 4 to the Tax Laws Amendment (2008 Measures No. 6) Act 2009. 6. Schedule 2, The day on which this Act receives the Part 3 Royal Assent. 7. Schedule 3 1 Ju ly 2009. 1 Ju ly 2009 8. Schedule 4, The day on which this Act receives the Part 1 Royal Assent. 9. Schedule 4, 1 Ju ly 2014. 1 Ju ly 2014 Part 2 10. Schedule 5, The day on which this Act receives the Part 1 Royal Assent. 11. Schedule 5, Immediately before the co mmencement of Part 2 Schedule 3 to the Tax Laws Amendment (Repeal of Inoperative Provisions) Act 2006. 12. Schedule 5, The day on which this Act receives the Part 3 Royal Assent. 13. Schedule 6, The day on which this Act receives the Part 1 Royal Assent. 14. Schedule 6, A single day to be fixed by Proclamat ion. Part 2 However, if any of the provision(s) do not commence with in the period of 12 months beginning on the day on which this Act 2 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 [Page Break] Column 1 Column 2 Column 3 Provision(s) Commencement Date/Details receives the Royal Assent, they commence on the first day after the end of that period. 15. Schedule 7 1 Ju ly 2009. 1 Ju ly 2009 16. Schedule 8, The day on which this Act receives the Part 1 Royal Assent. 17. Schedule 8, 1 Ju ly 2011. 1 Ju ly 2011. Part 2 18. Schedule 8, The day on which this Act receives the Part 3 Royal 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 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 3 [Page Break] 1 2 Schedule 1--Tax treatment of payments under 3 financial claims scheme 4 5 Banking Act 1959 6 1 After section 16AH 7 Insert: 8 16AHA Giving information about payments in a financial year 9 (1) This section applies if one or more amounts are paid to, or applied 10 for the benefit of, one or more account-holders in a financial year 11 to meet (wholly or partly) the account-holders' entitlements under 12 this Subdivision. 13 Giving each account-holder an annual statement 14 (2) Within 14 days after the end of the financial year, APRA must give 15 each of those account-holders a statement about the amounts paid 16 to, or applied for the benefit of, the account-holder in the financial 17 year. The statement must: 18 (a) be in the approved form; and 19 (b) name the account-holder; and 20 (c) state the account-holder's tax file number, if APRA knows it; 21 and 22 (d) state the total of the amounts and the total of the amounts (if 23 any) withheld from them under the Taxation Administration 24 Act 1953; and 25 (e) specify the financial year to which the statement relates. 26 Giving the Commissioner of Taxation an annual report 27 (3) Within 4 months after the end of the financial year, APRA must 28 give the Commissioner a report in the approved form about all the 29 amounts described in subsection (1). 4 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 [Page Break] 1 Provisions about statements and reports in approved forms 2 (4) Division 388 in Schedule 1 to the Taxation Administration Act 3 1953 applies as if this section were a taxation law for the purposes 4 of that Act. 5 Note: That Division sets out rules about approved forms and when they can 6 be given. 7 This section does not limit the Taxation Administration Act 1953 8 (5) Subsection (4) does not limit the operation of the Taxation 9 Administration Act 1953 in relation to APRA. 10 2 Application of section 16AHA 11 Section 16AHA of the Banking Act 1959 applies in relation to amounts 12 paid or applied before, on or after the commencement of the section. 13 3 After paragraph 16AK(4)(e) 14 Insert: 15 (ea) preparing or giving a statement or report required by 16 section 16AHA; 17 (eb) complying with an obligation under a law relating to 18 taxation; 19 First Home Saver Accounts Act 2008 20 4 At the end of subsection 15(1) 21 Add: 22 Note: If the person has or had an entitlement arise under Division 2AA 23 (Financial claims scheme for account-holders with insolvent ADIs) of 24 Part II of the Banking Act 1959 in relation to an FHSA, section 128A 25 of this Act affects this section. 26 5 At the end of subsection 19(3) 27 Add: 28 Note: Section 128A prevents this section from applying to the opening of an 29 FHSA on a person's behalf by APRA or a liquidator under 30 Division 2AA (Financial claims scheme for account-holders with 31 insolvent ADIs) of Part II of the Banking Act 1959. 32 6 At the end of subsection 20(5) Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 5 [Page Break] 1 Add: 2 Note: Section 128A extends the operation of this section in relation to an 3 FHSA opened on a person's behalf by APRA or a liquidator under 4 Division 2AA (Financial claims scheme for account-holders with 5 insolvent ADIs) of Part II of the Banking Act 1959. 6 7 Subsection 31(1) (note) 7 Omit "Note:", substitute "Note 1:". 8 8 At the end of subsection 31(1) 9 Add: 10 Note 2: If an entitlement under Division 2AA (Financial claims scheme for 11 account-holders with insolvent ADIs) of Part II of the Banking Act 12 1959 arises in connection with the FHSA, this section does not 13 prevent a payment from the FHSA connected with the right to be paid 14 that section 16AI of that Act gives APRA in relation to the FHSA (see 15 section 128A of this Act). 16 9 After section 128 17 Insert: 18 128A Special provisions applying if financial claims scheme 19 entitlements arise in relation to FHSAs 20 Application 21 (1) This section applies if an entitlement under Division 2AA 22 (Financial claims scheme for account-holders with insolvent ADIs) 23 of Part II of the Banking Act 1959 arises in connection with an 24 FHSA (the old FHSA) held by a person. 25 Some contributions treated as transfers from old FHSA 26 (2) If a contribution to another FHSA is made for the purposes of: 27 (a) meeting the entitlement (wholly or partly); or 28 (b) paying a distribution attributable to the old FHSA from the 29 liquidation of the provider of the old FHSA; 30 this Act applies as if the contribution were by way of a transfer 31 from the old FHSA to the other FHSA. 32 Note: The effects of this include the contribution being covered by 33 paragraph 11(3)(a), so that the contribution is not a personal FHSA 34 contribution, does not count against the limit on contributions set by 6 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 [Page Break] 1 section 27 and does not count for working out the amount of a 2 Government FHSA contribution for the person under section 38. 3 Old FHSA does not affect whether person meets FHSA eligibility 4 requirements 5 (3) For the purposes of determining whether the person meets the 6 FHSA eligibility requirements after the entitlement arises, 7 disregard the old FHSA for the purposes of paragraphs 15(1)(e) 8 and (f). 9 Note: This ensures that the holding and closure of the old FHSA after the 10 entitlement arises cannot prevent the person from meeting the FHSA 11 eligibility requirements. 12 Opening of new FHSA to meet entitlement 13 (4) Subsection 19(1) does not apply to the opening of an FHSA: 14 (a) under section 16AH of the Banking Act 1959 for the purposes 15 of meeting the entitlement (wholly or partly); or 16 (b) under section 16AR of that Act for the purposes of paying a 17 distribution attributable to the old FHSA from the liquidation 18 of the provider of the old FHSA. 19 Note: A defendant in a prosecution for an offence against section 19 bears 20 an evidential burden in relation to the matter in subsection (4) of this 21 section: see subsection 13.3(3) of the Criminal Code. 22 Notice of person not meeting the FHSA eligibility requirements 23 (5) If: 24 (a) an FHSA (the new FHSA) is opened: 25 (i) under section 16AH of the Banking Act 1959 for the 26 purposes of meeting the entitlement (wholly or partly); 27 or 28 (ii) under section 16AR of that Act for the purposes of 29 paying a distribution attributable to the old FHSA from 30 the liquidation of the provider of the old FHSA; and 31 (b) before the new FHSA was opened, circumstances arose 32 resulting in the person not meeting the FHSA eligibility 33 requirements; and 34 (c) after the opening of the new FHSA, the person continues not 35 to meet the FHSA eligibility requirements; Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 7 [Page Break] 1 section 20 applies to the person as the holder of the new FHSA in 2 relation to the provider of the new FHSA, but so as to require the 3 person to give notice within 30 days after notice is sent to the 4 person of the opening of the new FHSA. 5 Payment connected with right given to APRA by the Banking Act 6 1959 7 (6) Nothing in this Act or the regulations prevents the provider of the 8 old FHSA from paying an amount out of the FHSA in connection 9 with a right to be paid an amount by the provider that APRA had in 10 connection with the old FHSA because of section 16AI of the 11 Banking Act 1959. 12 Note: Section 16AI of the Banking Act 1959 gives APRA the right (or part 13 of the right) the holder of the old FHSA had to be paid an amount by 14 the provider of the old FHSA in connection with the old FHSA. 15 10 Application 16 The amendments of the First Home Saver Accounts Act 2008 made by 17 this Schedule apply in relation to entitlements arising under 18 Division 2AA (Financial claims scheme for account-holders with 19 insolvent ADIs) of Part II of the Banking Act 1959 after 17 October 20 2008. 21 Note: Division 2AA of Part II of the Banking Act 1959 commenced on 18 October 2008. 22 Income Tax Assessment Act 1936 23 11 At the end of subsection 393-15(3) in Schedule 2G 24 Add: 25 Note: Section 393-80 affects the unrecouped FM D deduction of a new 26 deposit linked to an old farm management deposit in relation to which 27 there arose an entitlement under Division 2AA (Financial claims 28 scheme for account-holders with insolvent ADIs) of Part II of the 29 Banking Act 1959. 30 12 At the end of subsection 393-15(4) in Schedule 2G 31 Add: 32 Note 3: Section 393-85 limits the operation of subsection (4) of this section if: 33 (a) the farm management deposit is with an ADI that becomes a 34 declared ADI under Division 2AA (Financial claims scheme for 35 account-holders with insolvent ADIs) of Part II of the Banking 36 Act 1959; and 8 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 [Page Break] 1 (b) an amount equal to the deposit has not been paid to you as an 2 entitlement under that Division, or in liquidation of the ADI, by 3 the end of the year of income. 4 13 Section 393-25 in Schedule 2G 5 Insert: 6 ADI has the same meaning as in the Banking Act 1959. 7 14 Section 393-25 in Schedule 2G (paragraph (a) of the 8 definition of financial institution) 9 Omit "(authorised deposit-taking institution) for the purposes of the 10 Banking Act 1959". 11 15 At the end of Division 393 in Schedule 2G 12 Add: 13 Subdivision 393-D--Special rules relating to financial claims 14 scheme for account-holders with insolvent ADIs 15 Guide to Subdivision 393-D 16 393-75 What this Subdivision is about 17 A deposit (the new deposit) arising from: 18 (a) an entitlement under Division 2AA of Part II of the 19 Banking Act 1959 relating to a farm management 20 deposit with an ADI; or 21 (b) a distribution from liquidation of the ADI that is 22 attributable to a farm management deposit; 23 is treated as a transfer of the farm management deposit that does 24 not give rise to new assessable income or deductions. 25 Table of sections 26 Operati ve provisions Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 9 [Page Break] 1 393-80 Farm management deposits arising from farm management deposits with 2 ADIs subject to financial claims scheme 3 393-85 Repayment if owner of farm management deposit with insolvent ADI is 4 bankrupt, dies or ceases to be a primary producer 5 Operative provisions 6 393-80 Farm management deposits arising from farm management 7 deposits with ADIs subject to financial claims scheme 8 Application 9 (1) This section applies if an entitlement arises under Division 2AA 10 (Financial claims scheme for account-holders with insolvent ADIs) 11 of Part II of the Banking Act 1959 in connection with an account 12 containing a farm management deposit (the old farm management 13 deposit) with an ADI (the old ADI) and either: 14 (a) an amount (the new deposit) is deposited into one of the 15 following to meet, in whole or part, so much of the 16 entitlement as relates to the old farm management deposit: 17 (i) an existing account for a farm management deposit; 18 (ii) an account established under section 16AH of that Act 19 for the purposes of meeting (wholly or partly) the 20 entitlement; or 21 (b) an amount (also the new deposit) is deposited by a liquidator 22 of the old ADI into one of the following as so much of a 23 distribution from the liquidation of the old ADI as relates to 24 the old farm management deposit: 25 (i) an existing account for a farm management deposit; 26 (ii) an account established under section 16AR of that Act 27 for the payment of the distribution. 28 Note: If an amount is deposited in connection with an account with the old 29 ADI containing 2 or more old farm management deposits, the amount 30 is to be apportioned between each old farm management deposit, so 31 that so much of the amount as is attributable to a particular old farm 32 management deposit is regarded as a distinct new deposit relating to 33 that old farm management deposit. 34 New deposit is a farm management deposit 35 (2) This Division (except this section) applies to the new deposit as if 36 it were a transfer of the old farm management deposit in 37 accordance with a requirement of the agreement for the old farm 10 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 [Page Break] 1 management deposit as mentioned in subsection 393-40(5). To 2 avoid doubt, this Division applies in that way as if the amount 3 transferred were the amount of the new deposit, even if that is 4 more or less than the amount of the old farm management deposit. 5 Note 1: The effects of this include the following: 6 (a) the applicable depositing day for the old farm management 7 deposit is maintained under paragraph 393-37(7)(c) or (d) for the 8 new deposit (which affects whether a withdrawal of the new 9 deposit prevents it from being a farm management deposit); 10 (b) the new deposit is not regarded as a repayment of the old farm 11 management deposit that is assessable income (see subsection 12 393-50(5)); 13 (c) the making of the new deposit does not give rise to a deduction 14 (see subsection 393-50(5)). 15 Note 2: Also, the unrecouped FMD deduction in respect of the new deposit is 16 the same as the unrecouped FM D deduction in respect of the old farm 17 management deposit (see subsection 393-50(5)), unless subsection (6) 18 or (7) of this section applies because the new deposit is less than the 19 old farm management deposit. 20 (3) Subsection 393-35(5) does not apply in relation to either of the 21 following to prevent it from being a farm management deposit: 22 (a) the new deposit; 23 (b) a deposit made later directly by the transfer of the new 24 deposit in accordance with a requirement of the agreement 25 for the new deposit as mentioned in subsection 393-40(5). 26 Note: This means that the new deposit, or a deposit made as a direct result of 27 the transfer of the new deposit, can be a farm management deposit 28 (despite subsection 393-45(1)) even if it is less than $1,000. 29 (4) For the purposes of subsection 393-35(7), disregard the old farm 30 management deposit in determining whether a deposit made after 31 the entitlement arises is a farm management deposit. 32 Note: This means that a deposit made with a financial institution other than 33 the old ADI after the entitlement arises can be a farm management 34 deposit (despite subsection 393-45(1)) even though the owner of the 35 deposit still has the old farm management deposit with the old ADI. 36 (5) Subsection 393-35(7) does not apply to the new deposit to prevent 37 it from being a farm management deposit. 38 Note: This ensures that the new deposit can be a farm management deposit 39 (despite subsection 393-45(1)) even though the owner of the new 40 deposit has other farm management deposits with other financial 41 institutions when the new deposit is made. Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 11 [Page Break] 1 Unrecouped FMD deduction for new deposit less than old farm 2 management deposit 3 (6) Despite subsection (2) and paragraph 393-50(5)(c), if the new 4 deposit is less than the old farm management deposit at the time 5 (the declaration time) the old ADI became a declared ADI under 6 the Banking Act 1959, the unrecouped FMD deduction in respect 7 of the new deposit is the amount worked out using the formula: Unrecouped FMD deduction New deposit 8 in respect of old farm management deposit just before declaration time Old farm management deposit just before declaration time 9 Note: The new deposit could be less than the old farm management deposit 10 if the entitlement is paid in instalments (each of which will be a 11 separate new deposit). 12 (7) However, if the amount worked out under subsection (6) is more 13 than the difference (if any) between: 14 (a) the unrecouped FMD deduction in respect of the old farm 15 management deposit just before the declaration time; and 16 (b) the total of the amounts worked out under all previous 17 applications of subsection (6) in relation to that old farm 18 management deposit; 19 the unrecouped FMD deduction in respect of the new deposit is 20 equal to the difference (if any). 21 Note: This ensures that when new deposits linked to the old farm 22 management deposit are repaid, the total amount included in 23 assessable income will not exceed the unrecouped FM D deduction in 24 respect of the old farm management deposit. 25 Relationship with other provisions 26 (8) This section has effect despite Division 253 of the Income Tax 27 Assessment Act 1997 (which is about tax treatment of entitlements 28 under the financial claims scheme for insolvent ADIs). 29 393-85 Repayment if owne r of farm manage ment deposit with 30 insolvent ADI dies, is bankrupt or ceases to be a primary 31 producer 32 (1) This section applies if: 12 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 [Page Break] 1 (a) you are the owner of a farm management deposit with an 2 ADI that becomes repayable during a year of income in 3 accordance with a requirement of the agreement concerned to 4 the effect mentioned in subsection 393-40(3) (which covers 5 death, bankruptcy and ceasing to be a primary producer); and 6 (b) during the year of income the ADI becomes a declared ADI 7 under Division 2AA (Financial claims scheme for 8 account-holders with insolvent ADIs) of Part II of the 9 Banking Act 1959; and 10 (c) at the end of the year of income, you have either or both of 11 the following: 12 (i) an unmet entitlement under that Division connected 13 with the account for the farm management deposit; 14 (ii) an unmet claim against the ADI, or an unpaid debt owed 15 to you by the ADI, in the winding up of the ADI that is 16 a claim or debt that is connected with the account for the 17 farm management deposit. 18 (2) Subsection 393-15(4) does not apply in relation to so much of the 19 farm management deposit as is equal to the sum of the amounts 20 described in subparagraphs (1)(c)(i) and (ii). 21 16 Application 22 The amendments of Schedule 2G to the Income Tax Assessment Act 23 1936 made by this Schedule apply to assessments for the year of income 24 including 18 October 2008 and later years of income. 25 Note: Division 2AA (Financial claims scheme for account-holders with insolvent ADIs) of 26 Part II of the Banking Act 1959 commenced on 18 October 2008. 27 Income Tax Assessment Act 1997 28 17 At the end of subsection 104-10(5) 29 Add: 30 Note 4: A capital gain or loss you make because of section 16AI of the 31 Banking Act 1959 is disregarded: see section 253-10 of this Act. 32 Section 16AI of the Banking Act 1959: 33 (a) reduces your right to be paid an amount by an ADI in connection 34 with an account to the extent of your entitlement under 35 Division 2AA of Part II of that Act to be paid an amount by 36 APRA; and Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 13 [Page Break] 1 (b) provides that, to the extent of the reduction, the right becomes a 2 right of APRA. 3 Note 5: A capital gain or loss you make because, under section 62ZZL of the 4 Insurance Act 1973, you dispose of a CGT asset consisting of your 5 rights against a general insurance company to APRA is disregarded: 6 see section 322-30 of this Act. 7 18 At the end of subsection 104-25(5) 8 Add: 9 Note 7: A capital gain or loss you make from the meeting of your entitlement 10 under Division 2AA (Financial claims scheme for account-holders 11 with insolvent ADIs) of Part II of the Banking Act 1959 or Part VC 12 (Financial claims scheme for account-holders with insolvent general 13 insurers) of the Insurance Act 1973 is disregarded: see sections 253-10 14 and 322-30 of this Act. 15 19 Section 112-97 (at the end of the table) 16 Add: 31 An entitlement arises under The total cost base, and Section 253-15 Div ision 2AA of Part II of the reduced cost base, of the Banking Act 1959 in entitlement and of the connection with an remainder (if any) of the account-holder's account with right to be paid by the an ADI ADI in connection with the account 17 20 At the end of Part 3-10 18 Add: 19 Division 253--Financial claims scheme for account-holders 20 with insolvent ADIs 21 Table of Subdivisions 22 253-A Tax treatment of entitlements under financial claims scheme 14 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 [Page Break] 1 Subdivision 253-A--Tax treatment of entitlements under 2 financial claims scheme 3 Guide to Subdivision 253-A 4 253-1 What this Subdivision is about 5 This Act applies to a payment of an entitlement under 6 Division 2AA (Financial claims scheme for account-holders with 7 insolvent ADIs) of Part II of the Banking Act 1959 as if the 8 payment were made by the ADI under the agreement for the 9 account concerned. 10 Special rules prevent the arising and payment of such an 11 entitlement from creating inappropriate capital gains or losses 12 affecting assessable income. 13 Table of sections 14 Operati ve provisions 15 253-5 Payment of entitlement under financial claims scheme treated as payment 16 from ADI 17 253-10 Disposal of rights against ADI to APRA and meeting of financial claims 18 scheme entitlement have no CGT effects 19 253-15 Cost base of financial claims scheme entitlement and any remaining part of 20 account that gave rise to entitlement 21 Operative provisions 22 253-5 Payment of entitlement under financial claims scheme treated 23 as payment from ADI 24 (1) This Act applies to you as if an amount paid to you, or applied for 25 your benefit, to meet your entitlement under Division 2AA 26 (Financial claims scheme for account-holders with insolvent ADIs) 27 of Part II of the Banking Act 1959 connected with an account with 28 an *ADI had been paid to you by the ADI under the terms and 29 conditions of the agreement for keeping the account. 30 Note: This section has effect subject to more detailed provisions about: Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 15 [Page Break] 1 (a) entitlements relating to retirement savings accounts (see 2 section 306-25); and 3 (b) entitlements relating to farm management deposits (see 4 Subdivision 393-D in Schedule 2G to the Income Tax Assessment 5 Act 1936). 6 (2) To avoid doubt, subsection (1) does not affect the operation of 7 Part 2-5 in Schedule 1 to the Taxation Administration Act 1953. 8 Note: Division 21 in Schedule 1 to the Taxation Administration Act 1953 9 contains special provisions about how Part 2-5 in that Schedule 10 operates in relation to the meeting of entitlements under Division 2AA 11 of Part II of the Banking Act 1959. 12 253-10 Disposal of rights against ADI to APRA and meeting of 13 financial claims scheme entitlement have no CGT effects 14 Disregard a * capital gain or * capital loss you make: 15 (a) because of the operation of section 16AI of the Banking Act 16 1959; or 17 (b) because your entitlement under Subdivision C of 18 Division 2AA of Part II of that Act is met. 19 Note: Section 16AI of the Banking Act 1959 reduces the right of an 20 account-holder who has a protected account with a declared ADI to be 21 paid an amount by the ADI, by the account-holder's entitlement under 22 Subdivision C of Division 2AA of Part II of that Act to be paid an 23 amount by APRA in connection with the account. 24 253-15 Cost base of financial claims scheme entitlement and any 25 re maining part of account that gave rise to entitlement 26 (1) This section applies if an entitlement arises under Divis ion 2AA 27 (Financial claims scheme for account-holders with insolvent ADIs) 28 of Part II of the Banking Act 1959 in connection with an 29 account-holder's account with an * ADI. 30 (2) The *cost base and * reduced cost base of the * CGT asset consisting 31 of the entitlement are each the amount of the entitlement. 32 (3) The *cost base of the *CGT asset representing the part (if any) of 33 the account-holder's right to be paid an amount by the * ADI in 34 connection with the account that remains after the reduction of that 35 right by section 16AI of the Banking Act 1959 (by the amount of 36 the entitlement) is the difference (if any) between: 16 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 [Page Break] 1 (a) the cost base of the right as it was immediately before the 2 reduction; and 3 (b) the amount of the entitlement. 4 The * reduced cost base is worked out similarly. 5 (4) This section has effect despite: 6 (a) Division 110 (Cost base and reduced cost base); and 7 (b) subsections 112-30(2), (3), (4) and (5) (which are about 8 apportioning a * cost base if a * CGT event happens to only 9 part of a * CGT asset). 10 21 At the end of Division 306 11 Add: 12 306-25 Payments connected with financial claims sche me to RSAs 13 (1) This section applies if: 14 (a) a person is the holder of an * RSA (the old RSA) of which an 15 * ADI is the * RSA provider; and 16 (b) an entitlement of the person arises under Division 2AA 17 (Financial claims scheme for account-holders with insolvent 18 ADIs) of Part II of the Banking Act 1959 in connection with 19 the old RSA; and 20 (c) either: 21 (i) the entitlement, so far as it relates to the old RSA, is met 22 wholly or partly by the making of a payment to another 23 RSA (the new RSA) that the person is the holder of 24 (whether or not the new RSA was established under 25 section 16AH of the Banking Act 1959); or 26 (ii) a liquidator of the ADI pays a distribution from the 27 liquidation of the ADI, so far as the distribution is 28 attributable to the old RSA, to another RSA (also the 29 new RSA) that the person is the holder of (whether or 30 not the new RSA was established under section 16AR 31 of the Banking Act 1959). 32 (2) This Part (except this section), and the other provisions of this Act 33 (except this section) so far as they relate to this Part, apply in 34 relation to the payment to the new RSA as if: 35 (a) the payment were made from the old RSA to the new RSA; 36 and Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 17 [Page Break] 1 (b) the entity that made the payment (rather than the * ADI) were 2 the * RSA provider of the old RSA. 3 Note: The effects of this include: 4 (a) the payment is a superannuation member benefit of the person 5 (because of sections 307-5 and 307-15); and 6 (b) the payment is a superannuation lump sum under 7 Subdivision 307-B (unless regulations prevent this); and 8 (c) the payment is a roll-over superannuation benefit under 9 section 306-10 (unless regulations prevent this); and 10 (d) reporting obligations (such as those in section 390-10 in 11 Schedule 1 to the Taxation Administration Act 1953) apply to the 12 entity that made the payment as if it were the RSA provider of 13 the old RSA. 14 (3) However, for the purposes of section 307-125, determine the 15 * value of the *superannuation interest, and the amount of each of 16 the * tax free component and the * taxable component of the interest: 17 (a) when the entitlement arose; or 18 (b) if a * superannuation income stream benefit had been paid 19 from the old RSA before that time--at the time the relevant 20 * superannuation income stream commenced. 21 (4) Subsection (3) has effect despite: 22 (a) subsection 307-125(3) (as it applies because of subsection (2) 23 of this section); and 24 (b) paragraph 307-125(3)(a) of the Income Tax (Transitional 25 Provisions) Act 1997. 26 (5) This section has effect despite: 27 (a) Division 253; and 28 (b) Division 21 in Schedule 1 to the Taxation Administration Act 29 1953. 30 22 Application 31 (1) Section 306-25 of the Income Tax Assessment Act 1997 applies in 32 relation to entitlements arising under Division 2AA (Financial claims 33 scheme for account-holders with insolvent ADIs) of Part II of the 34 Banking Act 1959 after 17 October 2008. 35 Note: Division 2AA of Part II of the Banking Act 1959 commenced on 18 October 2008. 36 (2) However, this item does not: 18 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 [Page Break] 1 (a) require a person to do anything the person would have been 2 required by Division 390 in Schedule 1 to the Taxation 3 Administration Act 1953 to do before the commencement of 4 this item had section 306-25 of the Income Tax Assessment 5 Act 1997 commenced on 18 October 2008; or 6 (b) make a person liable to a criminal or administrative penalty 7 for an omission occurring before the commencement of this 8 item. 9 23 Division 322 (heading) 10 Repeal the heading, substitute: 11 Division 322--Assistance for policyholders with insolvent 12 general insurers 13 24 At the end of section 322-1 14 Add "and deals with the tax treatment of entitlements under Part VC 15 (Financial claims scheme for policyholders with insolvent general 16 insurers) of the Insurance Act 1973". 17 25 Group heading before section 322-5 18 Repeal the heading, substitute: 19 Subdivision 322-A--HIH rescue package 20 26 At the end of Division 322 21 Add: 22 Subdivision 322-B--Tax treatment of entitlements under 23 financial claims scheme 24 Guide to Subdivision 322-B 25 322-20 What this Subdivision is about 26 This Act applies to a payment of an entitlement under Part VC 27 (Financial claims scheme for policyholders with insolvent general 28 insurers) of the Insurance Act 1973 as if the payment were made 29 by the insurer under the insurance policy concerned. Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 19 [Page Break] 1 Disregard a capital gain or loss from: 2 (a) the disposal to APRA under that Part of rights 3 against the insurer under an insurance policy; or 4 (b) the payment of an entitlement under that Part. 5 Table of sections 6 Operati ve provisions 7 322-25 Payment of entitlement under financial claims scheme treated as payment 8 from insurer 9 322-30 Disposal of rights against insurer to APRA and meeting of financial claims 10 scheme entitlement have no CGT effects 11 Operative provisions 12 322-25 Payment of entitlement under financial claims scheme 13 treated as payment from insurer 14 (1) This Act applies to you as if an amount paid to you, or applied for 15 your benefit, to meet your entitlement under Part VC (Financial 16 claims scheme for policyholders with insolvent general insurers) of 17 the Insurance Act 1973 relating to a * general insurance policy 18 issued by a * general insurance company had been paid to you by 19 the company under the terms and conditions of the policy. 20 (2) To avoid doubt, subsection (1) does not affect the operation of 21 Part 2-5 in Schedule 1 to the Taxation Administration Act 1953. 22 Note: Division 21 in Schedule 1 to the Taxation Administration Act 1953 23 contains special provisions about how Part 2-5 in that Schedule 24 operates in relation to the meeting of entitlements under Part VC of 25 the Insurance Act 1973. 26 322-30 Disposal of rights against insurer to APRA and meeting of 27 financial claims scheme entitlement have no CGT effects 28 Disregard a * capital gain or * capital loss you make because: 29 (a) under section 62ZZL of the Insurance Act 1973, you * dispose 30 of a * CGT asset consisting of your rights against a * general 31 insurance company to * APRA; or 20 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 [Page Break] 1 (b) your entitlement under Division 3 of Part VC of that Act is 2 met. 3 Note 1: Section 62ZZL of the Insurance Act 1973 causes you to cease to be 4 the owner, and APRA to become the owner, of rights against a general 5 insurance company relating to a general insurance policy when your 6 entitlement arises under Part VC of that Act in relation to the policy. 7 Note 2: Division 3 of Part VC of the Insurance Act 1973 entitles persons with 8 valid claims based on general insurance policies issued by certain 9 general insurance companies that have since become insolvent to be 10 paid the amount of those claims by APRA. 11 Income Tax (Transitional Provisions) Act 1997 12 27 At the end of Part 3-10 13 Add: 14 Division 253--Financial claims scheme for account-holders 15 with insolvent ADIs 16 Table of Subdivisions 17 253-A Tax treatment of entitlements under financial claims scheme 18 Subdivision 253-A--Tax treatment of entitlements under 19 financial claims scheme 20 Table of sections 21 253-5 Application of section 253-5 of the Income Tax Assessment Act 1997 22 253-10 Application of sections 253-10 and 253-15 of the Income Tax Assessment 23 Act 1997 24 253-5 Application of section 253-5 of the Income Tax Assessment Act 25 1997 26 Section 253-5 of the Income Tax Assessment Act 1997 applies to 27 amounts paid or applied before, on or after the commencement of 28 that section to meet entitlements arising under Division 2AA of 29 Part II of the Banking Act 1959 after 17 October 2008. 30 Note: Division 2AA of Part II of the Banking Act 1959 commenced on 31 18 October 2008. Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 21 [Page Break] 1 253-10 Application of sections 253-10 and 253-15 of the Income Tax 2 Assessment Act 1997 3 Sections 253-10 and 253-15 of the Income Tax Assessment Act 4 1997 apply to CGT events happening after 17 October 2008. 5 28 Part 3-35 (heading) 6 Repeal the heading, substitute: 7 Part 3-35--Insurance business 8 29 At the end of Part 3-35 9 Add: 10 Division 322--Assistance for policyholders with insolvent 11 general insurers 12 Table of Subdivisions 13 322-B Tax treatment of entitlements under financial claims scheme 14 Subdivision 322-B--Tax treatment of entitlements under 15 financial claims scheme 16 Table of sections 17 322-25 Application of section 322-25 of the Income Tax Assessment Act 1997 18 322-30 Application of section 322-30 of the Income Tax Assessment Act 1997 19 322-25 Application of section 322-25 of the Income Tax Assessment 20 Act 1997 21 Section 322-25 of the Income Tax Assessment Act 1997 applies to 22 amounts paid or applied before, on or after the commencement of 23 that section to meet entitlements arising under Part VC of the 24 Insurance Act 1973 after 17 October 2008. 25 Note: Part VC of the Insurance Act 1973 commenced on 18 October 2008. 22 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 [Page Break] 1 322-30 Application of section 322-30 of the Income Tax Assessment 2 Act 1997 3 Section 322-30 of the Income Tax Assessment Act 1997 applies to 4 CGT events happening after 17 October 2008. 5 Insurance Act 1973 6 30 After section 62ZZK 7 Insert: 8 62ZZKA Giving information about payments in a financial year 9 (1) This section applies if one or more amounts are paid to, or applied 10 for the benefit of, one or more persons (the recipients) in a 11 financial year to meet (wholly or partly) the recipients' 12 entitlements under this Division. 13 Giving each recipient an annual statement 14 (2) Within 14 days after the end of the financial year, APRA must give 15 each of the recipients a statement about the amounts paid to, or 16 applied for the benefit of, the recipient in the financial year. The 17 statement must: 18 (a) be in the approved form; and 19 (b) name the recipient; and 20 (c) state the recipient's tax file number, if APRA knows it; and 21 (d) state the total of the amounts and the total of the amounts (if 22 any) withheld from them under the Taxation Administration 23 Act 1953; and 24 (e) specify the financial year to which the statement relates. 25 Giving the Commissioner of Taxation an annual report 26 (3) Within 4 months after the end of the financial year, APRA must 27 give the Commissioner a report in the approved form about all the 28 amounts described in subsection (1). Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 23 [Page Break] 1 Provisions about statements and reports in approved forms 2 (4) Division 388 in Schedule 1 to the Taxation Administration Act 3 1953 applies as if this section were a taxation law for the purposes 4 of that Act. 5 Note: That Division sets out rules about approved forms and when they can 6 be given. 7 This section does not limit the Taxation Administration Act 1953 8 (5) Subsection (4) does not limit the operation of the Taxation 9 Administration Act 1953 in relation to APRA. 10 31 Application of section 62ZZKA 11 Section 62ZZKA of the Insurance Act 1973 applies in relation to 12 amounts paid or applied before, on or after the commencement of the 13 section. 14 32 At the end of subsection 62ZZM(1) 15 Add "under the terms and conditions of the policy". 16 33 After paragraph 62ZZP(4)(d) 17 Insert: 18 (da) preparing or giving a statement or report required by 19 section 62ZZKA; 20 (db) complying with an obligation under a law relating to 21 taxation; 22 Taxation Administration Act 1953 23 34 At the end of Part 2-5 in Schedule 1 24 Add: 25 Division 21--Entitlements relating to insolvent ADIs and 26 general insurers 27 Table of Subdivisions 28 Guide to Division 21 29 21-A Treatment of some payments by APRA 24 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 [Page Break] 1 Guide to Division 21 2 21-1 What this Division is about 3 This Part applies in relation to a payment by APRA under: 4 (a) Division 2AA of Part II of the Banking Act 1959 5 applying in relation to an account with an ADI; or 6 (b) Part VC of the Insurance Act 1973 applying in 7 relation to a general insurance policy issued by a 8 general insurance company; 9 in a way corresponding to the way this Part would have applied if 10 the payment had been made by the ADI or company in connection 11 with the account or policy. 12 Subdivision 21-A--Treatment of some payments by APRA 13 Table of sections 14 21-5 APRA treated like ADI or general insurance company 15 21-5 APRA treated like ADI or general insurance company 16 (1) This section applies if: 17 (a) an entity's entitlement under Division 2AA of Part II of the 18 Banking Act 1959 to be paid an amount by * APRA in 19 connection with the entity's account with an * ADI is met 20 wholly or partly; or 21 (b) an entity's entitlement under Part VC of the Insurance Act 22 1973 to be paid an amount in connection with a * general 23 insurance policy issued by a * general insurance company is 24 met wholly or partly. 25 Note 1: Division 2AA of Part II of the Banking Act 1959 entitles entities that 26 have certain accounts with certain insolvent ADIs to be paid amounts 27 by APRA worked out by reference to the balance of those accounts. 28 Note 2: Part VC of the Insurance Act 1973 entitles entities with valid claims 29 against certain insolvent general insurance companies under certain 30 general insurance policies issued by those companies to be paid 31 amounts by APRA. Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 25 [Page Break] 1 (2) This Part applies in relation to * APRA and the meeting of the 2 entitlement in a way corresponding to the way in which this Part 3 would have applied in relation to the * ADI or * general insurance 4 company doing, in connection with the account or policy, whatever 5 was done in meeting the entitlement. 6 Example: APRA (or APRA's agent or delegate) pays an entity an amount of the 7 entity's entitlement relating to an account with an ADI. This Part 8 applies in relation to APRA and the payment in a way corresponding 9 to the way in which this Part would have applied in relation to the 10 ADI had the ADI made a payment at that time of that amount under 11 the arrangements for keep ing the account. 12 35 Application of Division 21 in Schedule 1 to the Taxation 13 Administration Act 1953 14 (1) Division 21 in Schedule 1 to the Taxation Administration Act 1953 15 applies in relation to things done before, on or after the commencement 16 of the Division to meet entitlements arising after 17 October 2008 under 17 the following provisions: 18 (a) Division 2AA of Part II of the Banking Act 1959; 19 (b) Part VC of the Insurance Act 1973. 20 Note: Division 2AA of Part II of the Banking Act 1959 and Part VC of the Insurance Act 1973 21 commenced on 18 October 2008. 22 (2) However, this item does not: 23 (a) require APRA to do anything APRA would have been 24 required by Part 2-5 in Schedule 1 to the Taxation 25 Administration Act 1953 to do before the commencement of 26 this item had Division 21 in that Schedule commenced on 27 18 October 2008; or 28 (b) make APRA liable to a criminal or administrative penalty for 29 an omission occurring before the commencement of this 30 item. 31 26 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 [Page Break] Main amendments Part 1 1 2 Schedule 2--CGT concessions for small 3 business 4 Part 1--Main amendments 5 Income Tax Assessment Act 1997 6 1 Subparagraph 152-10(1)(c)(iii) 7 After "asset is an", insert "interest in an". 8 2 At the end of paragraph 152-10(1)(c) (before the note) 9 Add: 10 (iv) the conditions mentioned in subsection (1A) or (1B) are 11 satisfied in relation to the CGT asset in the income year; 12 3 Paragraph 152-10(1)(c) (note) 13 Repeal the note, substitute: 14 Note: For determining whether an entity is a small business entity, see 15 Subdivision 328-C (as affected by section 152-48). 16 4 After subsection 152-10(1) 17 Insert: 18 Passively held assets--affiliates and entities connected with you 19 (1A) The conditions in this subsection are satisfied in relation to the 20 * CGT asset in the income year if: 21 (a) your * affiliate, or an entity that is * connected with you, is a 22 * small business entity for the income year; and 23 (b) you do not carry on a * business in the income year (other 24 than in partnership); and 25 (c) if you carry on a business in partnership--the CGT asset is 26 not an interest in an asset of the partnership; and 27 (d) in any case--the small business entity referred to in 28 paragraph (a) is the entity that, at a time in the income year, 29 carries on the business (as referred to in subparagraph 30 152-40(1)(a)(ii) or (iii) or paragraph 152-40(1)(b)) in relation 31 to the CGT asset. Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 27 [Page Break] Part 1 Main amendments 1 Note 1: For determining whether an entity is a small business entity, see 2 Subdivision 328-C (as affected by section 152-48). 3 Note 2: For businesses that are winding up, see section 152-49 and subsection 4 328-110(5). 5 Passively held assets--partnerships 6 (1B) The conditions in this subsection are satisfied in relation to the 7 * CGT asset in the income year if: 8 (a) you are a partner in a partnership in the income year; and 9 (b) the partnership is a * small business entity for the income 10 year; and 11 (c) you do not carry on a * business in the income year (other 12 than in partnership); and 13 (d) the CGT asset is not an interest in an asset of the partnership; 14 and 15 (e) the business you carry on as a partner in the partnership 16 referred to in paragraph (a) is the business that you, at a time 17 in the income year, carry on (as referred to in subparagraph 18 152-40(1)(a)(i) or paragraph 152-40(1)(b)) in relation to the 19 CGT asset. 20 Note 1: For determining whether an entity is a small business entity, see 21 Subdivision 328-C (as affected by section 152-48). 22 Note 2: For businesses that are winding up, see section 152-49 and subsection 23 328-110(5). 24 5 Before subsection 152-10(2) 25 Insert: 26 Additional basic conditions for shares in a company or interests in 27 a trust 28 6 Before subsection 152-10(3) 29 Insert: 30 Extra conditions for some concessions 31 7 Before subsection 152-10(4) 32 Insert: 28 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 [Page Break] Main amendments Part 1 1 Special rules for certain CGT events 2 8 Paragraphs 152-40(1)(a) and (b) 3 Repeal the paragraphs, substitute: 4 (a) you own the asset (whether the asset is tangible or intangible) 5 and it is used, or held ready for use, in the course of carrying 6 on a * business that is carried on (whether alone or in 7 partnership) by: 8 (i) you; or 9 (ii) your * affiliate; or 10 (iii) another entity that is * connected with you; or 11 (b) if the asset is an intangible asset--you own it and it is 12 inherently connected with a business that is carried on 13 (whether alone or in partnership) by you, your affiliate, or 14 another entity that is connected with you. 15 9 Subsection 152-40(1) (note 2) 16 Omit "subparagraph (1)(a)(ii)", substitute "subparagraph (1)(a)(iii)". 17 10 At the end of subsection 152-40(1) 18 Add: 19 Note 3: An example of an asset that is inherently connected with a business is 20 goodwill or the benefit of a restrictive covenant. 21 Note 4: For businesses that are winding up, see section 152-49 and subsection 22 328-110(5). 23 11 Subsection 152-40(1A) 24 Repeal the subsection. 25 12 Subsection 152-40(2) 26 Omit "or (1A)". 27 13 Subsection 152-42(1) 28 Omit "subparagraph 152-40(1)(a)(ii)", substitute "subparagraph 29 152-40(1)(a)(iii)". 30 14 After section 152-45 31 Insert: Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 29 [Page Break] Part 1 Main amendments 1 Treatment of passively held CG T assets 2 152-47 Spouses or children taken to be affiliates for certain passively 3 held CGT assets 4 (1) This section applies if: 5 (a) one entity (the asset owner) owns a *CGT asset (whether the 6 asset is tangible or intangible); and 7 (b) either: 8 (i) the asset is used, or held ready for use, in the course of 9 carrying on a * business in an income year by another 10 entity (the business entity); or 11 (ii) the asset is inherently connected with a business that is 12 carried on in an income year by another entity (the 13 business entity); and 14 (c) the business entity is not (apart from this section) an *affiliate 15 of, or * connected with, the asset owner. 16 (2) For the purposes of this Subdivision, in determining whether the 17 business entity is an *affiliate of, or is * connected with, the asset 18 owner, take the following to be affiliates of an individual: 19 (a) a *spouse of the individual; 20 (b) a *child of the individual, being a child who is under 18 21 years. 22 (3) If an entity is an * affiliate of, or * connected with, another entity as 23 a result of subsection (2), then the * spouse or * child mentioned in 24 that subsection is, in addition, taken to be an affiliate of the 25 individual for the purposes of this Subdivision, and for the 26 purposes of sections 328-110 to 328-125 to the extent that they 27 relate to this Subdivision. 28 Example: The spouse or child mentioned in subsection (2) is taken to be an 29 affiliate of the individual for the purposes of working out which 30 entities are affiliates of or connected with entities under 31 section 152-48. 32 (4) To avoid doubt, subsection (2) applies: 33 (a) for the purposes of reducing or disregarding, under this 34 Division, any * capital gain from any * CGT asset; but 35 (b) only while: 36 (i) a *spouse remains a spouse; or 30 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 [Page Break] Main amendments Part 1 1 (ii) a *child remains a child who is under 18 years. 2 152-48 Working out an entity's aggregated turnove r for passively 3 held CGT assets 4 (1) This section applies for the purposes of section 328-115 to 5 determine whether an entity (the test entity) is a * small business 6 entity for the purposes of subsection 152-10(1A) or (1B). 7 (2) An entity (the deemed entity) is taken to be an *affiliate of, or 8 * connected with, the test entity (as the case requires) if: 9 (a) the deemed entity is an affiliate of, or connected with, the 10 entity that owns the * CGT asset referred to in subsection 11 152-10(1A) or (1B); and 12 (b) the deemed entity is not (apart from this section) an affiliate 13 of, or connected with, the test entity. 14 (3) If: 15 (a) the entity that owns the * CGT asset referred to in subsection 16 152-10(1B) is a partner in 2 or more partnerships; and 17 (b) the asset is: 18 (i) used, or held ready for use, in the course of carrying on 19 a * business that is carried on by at least 2 of those 20 partnerships; or 21 (ii) inherently connected with businesses that are carried on 22 by at least 2 of those partnerships; 23 then, each partnership referred to in paragraph (b) that is not (apart 24 from this section) * connected with the test entity is taken to be 25 connected with the test entity. 26 152-49 Businesses that are winding up 27 (1) This section applies to an entity in an income year (the CGT event 28 year) if: 29 (a) a * business that the entity previously carried on (including in 30 partnership) is being wound up in that year; and 31 (b) either: 32 (i) the asset was used, or held ready for use, in the course 33 of carrying on the business at a time in the income year 34 in which the business stopped being carried on; or Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 31 [Page Break] Part 1 Main amendments 1 (ii) if the asset is an intangible asset--the asset was 2 inherently connected with the business that was carried 3 on at a time in the income year in which the business 4 stopped being carried on. 5 (2) For the purposes of paragraphs 152-40(1)(a) and (b) as they apply 6 for the purposes of paragraphs 152-10(1A)(d) and (1B)(e): 7 (a) the entity is taken to carry on the * business at a time in the 8 CGT event year; and 9 (b) either: 10 (i) the * CGT asset is taken to be used, or held ready for 11 use, in the course of carrying on the business at that 12 time; or 13 (ii) if the asset is an intangible asset--the CGT asset is 14 taken to be inherently connected with the business at 15 that time. 16 Note: The entity might also be taken to be a small business entity in the 17 CGT event year (see subsection 328-110(5)). 18 15 At the end of subsection 328-115(1) 19 Add: 20 Note: For small business relief purposes, additional entities may be treated 21 as being connected with you or your affiliate under section 152-48. 22 16 At the end of section 328-130 (before the example) 23 Add: 24 Note: For small business relief purposes, a spouse or a child under 18 years 25 may also be an affiliate under section 152-47. 26 32 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 [Page Break] Other amend ments Part 2 1 2 Part 2--Other amendments 3 Income Tax Assessment Act 1936 4 17 At the end of subsection 109(1) 5 Add: 6 Note: This section does not apply to an amount if the amount is paid to a 7 CGT concession stakeholder under subsection 152-325(1) of the 8 Income Tax Assessment Act 1997 (see subsection 152-325(11)). 9 18 Subsection 109C(1) (note 1) 10 Repeal the note, substitute: 11 Note 1: Some payments do not give rise to dividends under Subdivision D. 12 This section also does not give rise to a dividend if the amount is paid 13 to a CGT concession stakeholder under subsection 152-325(1) of the 14 Income Tax Assessment Act 1997 (see subsection 152-325(11)). 15 Income Tax Assessment Act 1997 16 19 Section 11-55 (after table item headed "bonds") 17 Insert: 18 capital gains tax payments made by an interposed entity in relation to the small business retirement exempt ion ................................ 152-310(3) 19 20 At the end of subsection 104-197(1) 20 Add: 21 Note: You do not have to satisfy the basic conditions in Subdivision 152-A 22 for the gain in relation to CGT event J5 (see subsection 152-305(4)). 23 21 At the end of subsection 104-198(1) 24 Add: 25 Note: You do not have to satisfy the basic conditions in Subdivision 152-A 26 for the gain in relation to CGT event J6 (see subsection 152-305(4)). 27 22 Section 152-5 28 Omit: Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 33 [Page Break] Part 2 Other amendments 1 There are limitations on the availability of the small business 2 concessions for CGT events J2, J5 and J6. 3 Substitute: 4 There are limitations on the availability of the small business 5 concessions for CGT events J2, J5 and J6. 6 You do not need to satisfy the basic conditions for the retirement 7 exemption in relation to CGT events J5 and J6. 8 23 Subsection 152-10(4) (note) 9 Omit "Note", substitute "Note 1". 10 24 At the end of subsection 152-10(4) 11 Add: 12 Note 2: This Subdivision does not apply to CGT events J5 and J6 in relation to 13 the retirement exemption (see subsection 152-305(4)). 14 25 Paragraph 152-20(2)(a) 15 After "first-mentioned entity" (second occurring), insert ", but include 16 any liabilities related to any such shares, units or interests". 17 26 Paragraph 152-40(4)(e) 18 Omit "in the course of carrying on the * business mentioned in 19 subsection (1)", substitute "by you". 20 27 After subsection 152-40(4) 21 Insert: 22 (4A) For the purposes of paragraph (4)(e), in determining the main use 23 of an asset: 24 (a) disregard any personal use or enjoyment of the asset by you; 25 and 26 (b) treat any use by your * affiliate, or an entity that is * connected 27 with you, as your use. 28 28 Group heading before section 152-80 29 Repeal the heading, substitute: 34 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 [Page Break] Other amend ments Part 2 1 CG T event happens to asset or interest within 2 years of an 2 individual's death 3 29 Section 152-80 (heading) 4 Repeal the heading, substitute: 5 152-80 CGT event happens to an asset or inte rest within 2 years of 6 individual's death 7 30 Paragraphs 152-80(1)(a) and (b) 8 Repeal the paragraphs, substitute: 9 (a) a *CGT asset: 10 (i) forms part of the estate of a deceased individual; or 11 (ii) was owned by joint tenants and one of them dies; and 12 (b) any of the following applies: 13 (i) the asset devolves to the individual's * legal personal 14 representative; 15 (ii) the asset * passes to a beneficiary of the individual; 16 (iii) an interest in the asset is * acquired by the surviving joint 17 tenant or tenants (as the case may be) as mentioned in 18 section 128-50; 19 (iv) the asset devolves to a trustee of a trust established by 20 the will of the individual; and 21 31 Paragraph 152-80(1)(c) 22 Omit "the individual", substitute "the deceased individual referred to in 23 subparagraph (a)(i) or (ii)". 24 32 Subsection 152-80(2) 25 Repeal the subsection, substitute: 26 (2) A person mentioned in subsection (2A) is entitled to reduce or 27 disregard a *capital gain under this Division in the same way as the 28 deceased individual would have been entitled to as if: 29 (a) paragraph 152-105(d) only required the deceased individual 30 to have been 55 or over, or permanently incapacitated, at the 31 time of the *CGT event referred to in paragraph (1)(c) of this 32 section; and 33 (b) paragraph 152-305(1)(b) did not apply. Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 35 [Page Break] Part 2 Other amendments 1 (2A) The following persons (as the case requires) are entitled to reduce 2 or disregard a *capital gain under this Division in accordance with 3 subsection (2): 4 (a) the * legal personal representative of the individual; 5 (b) the beneficiary of the individual; 6 (c) the surviving joint tenant or tenants; 7 (d) the trustee or a beneficiary of the trust. 8 33 Section 152-300 9 Omit: 10 You may choose not to apply the concession in section 152-205 11 (small business 50% reduction) before this one. For an additional 12 concession, see also Subdivision 152-E (small business roll-over). 13 Substitute: 14 You may choose not to apply the concession in section 152-205 15 (small business 50% reduction) before this one. For an additional 16 concession, see also Subdivision 152-E (small business roll-over). 17 You do not need to satisfy the basic conditions for this exemption 18 in relation to CGT events J5 and J6. 19 34 After subsection 152-305(1) 20 Insert: 21 (1A) If you receive the * capital proceeds from the * CGT event in 22 instalments, paragraphs (1)(b) and (c) apply to each instalment in 23 succession (up to the asset's * CGT exempt amount). 24 35 At the end of section 152-305 25 Add: 26 (4) Paragraphs (1)(a) and (2)(a) do not apply if the * capital gain arose 27 from * CGT event J5 or J6. 28 36 Subsection 152-310(3) 29 Repeal the subsection, substitute: 36 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 [Page Break] Other amend ments Part 2 1 Additional consequences in relation to interposed entities 2 (3) If: 3 (a) an entity (the paying entity) receives a payment (whether 4 directly or indirectly through one or more interposed entities) 5 that a company or trust makes to comply with 6 section 152-325; and 7 (b) the paying entity passes on the payment to the *CGT 8 concession stakeholder or another interposed entity; 9 then: 10 (c) the payment cannot be deducted from the paying entity's 11 assessable income; and 12 (d) the payment received by the paying entity is not assessable 13 income and is not * exempt income. 14 37 Subsection 152-325(1) 15 After "payment", insert "(whether directly or indirectly through one or 16 more interposed entities)". 17 38 Subsection 152-325(9) 18 Repeal the subsection, substitute: 19 Payments are not dividends or frankable distributions 20 (9) Subsection (10) applies if: 21 (a) a company makes a payment to comply with subsection (1) 22 to: 23 (i) a *CGT concession stakeholder; or 24 (ii) an interposed entity, in relation to a CGT concession 25 stakeholder; or 26 (b) both of the following apply: 27 (i) an interposed entity receives a payment (whether 28 directly or indirectly through one or more interposed 29 entities) that a company or trust makes to comply with 30 subsection (1), in relation to a CGT concession 31 stakeholder; 32 (ii) the interposed entity passes on the payment to the CGT 33 concession stakeholder or another interposed entity. Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 37 [Page Break] Part 2 Other amendments 1 (10) This Act applies to the payment, to the extent that it is less than or 2 equal to the amount mentioned in subsection (3) for the 3 stakeholder, as if: 4 (a) it were not a * dividend; and 5 (b) it were not a * frankable distribution. 6 (11) Subsection (10) applies in relation to the payment despite 7 section 109 and Division 7A of Part III of the Income Tax 8 Assessment Act 1936. 9 39 At the end of section 328-110 10 Add: 11 Partners in a partnership 12 (6) A person who is a partner in a partnership in an income year is not, 13 in his or her capacity as a partner, a small business entity for the 14 income year. 15 Tax Laws Amendment (2008 Measures No. 6) Act 2009 16 40 Item 52 of Schedule 4 (table item 8) 17 Repeal the table item. 18 38 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 [Page Break] Application provisions Part 3 1 2 Part 3--Application provisions 3 41 Application of amendments made by Part 1 4 (1) The amendments made by Part 1 of this Schedule apply to CGT events 5 (other than CGT events to which subitem (2) applies) happening in the 6 2007-08 income year and later income years. 7 (2) Subitem (1) does not apply in relation to a CGT event (the excluded 8 event) if: 9 (a) the excluded event happens in relation to a CGT asset before 10 the day on which the Bill for this Act is introduced into the 11 Parliament; and 12 (b) an entity makes a capital gain from the excluded event; and 13 (c) the basic conditions in Subdivision 152-A of the Income Tax 14 Assessment Act 1997 (as in force immediately before Part 1 15 of this Schedule commences) are satisfied for the gain; and 16 (d) the basic conditions would not be satisfied for the gain if: 17 (i) subsection 152-40(1A) of that Act (as in force 18 immediately before Part 1 of this Schedule commences) 19 did not apply to the entity; or 20 (ii) section 152-47 of that Act (as in force immediately after 21 Part 1 of this Schedule commences) applied to the 22 entity. 23 (3) The amendments made by Part 1 of this Schedule apply to excluded 24 events happening on or after the day on which the Bill for this Act is 25 introduced into the Parliament. 26 42 Application of amendments made by items 25 to 27 27 The amendments made by items 25 to 27 of this Schedule apply to CGT 28 events that happen on or after the day on which this Act receives the 29 Royal Assent. 30 43 Application of amendments made by items 30 to 32 31 The amendments made by items 30 to 32 of this Schedule apply to CGT 32 events happening in the 2006-07 income year and later income years. 33 44 Application of amendment made by item 34 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 39 [Page Break] Part 3 Application provisions 1 The amendment made by item 34 applies to proceeds received in the 2 2007-08 income year and later income years. 3 45 Application of amendment made by item 35 4 The amendment made by item 35 of this Schedule applies to CGT 5 events happening in the 2006-07 income year and later income years. 6 46 Application of amendments made by items 36 to 38 7 The amendments made by items 36 to 38 of this Schedule apply to 8 payments that are made (whether by a company or trust to comply with 9 section 152-325 of the Income Tax Assessment Act 1997 or by an 10 interposed entity) on or after the day on which this Act receives the 11 Royal Assent. 12 47 Application of amendment made by item 39 13 The amendment made by item 39 of this Schedule applies to 14 assessments for the 2007-08 income year and later income years. 15 48 Transitional: choice 16 (1) Subitem (2) applies in relation to: 17 (a) a CGT event that happened before the day on which this Act 18 receives the Royal Assent; and 19 (b) an entity who becomes eligible to make a choice under 20 Division 152 of the Income Tax Assessment Act 1997 in 21 relation to that event because of this Schedule. 22 (2) Despite subsection 103-25(1) of the Income Tax Assessment Act 1997, 23 any such choice must be made by the entity by the latest of: 24 (a) the day the entity lodges its income tax return for the income 25 year in which the relevant CGT event happened; and 26 (b) 12 months after the day on which this Act receives the Royal 27 Assent; and 28 (c) a later day allowed by the Commissioner of Taxation. 29 40 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 [Page Break] 1 2 Schedule 3--Tax benefits and capital gains tax 3 4 Income Tax Assessment Act 1997 5 1 Paragraph 118-37(1)(h) 6 Repeal the paragraph, substitute: 7 (h) a right or entitlement to a * tax offset, a * deduction, or a 8 similar benefit under an *Australian law, a *foreign law or a 9 law of part of a foreign country; 10 2 Application 11 The amendment made by this Schedule applies in relation to a CGT 12 event happening in: 13 (a) the 2009-10 income year; or 14 (b) a later income year. 15 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 41 [Page Break] Part 1 Main amendments 1 2 Schedule 4--National Urban Water and 3 Desalination Plan 4 Part 1--Main amendments 5 Income Tax Assessment Act 1936 6 1 Subsection 73I(4) (note) 7 Omit "section 67-25", substitute "section 67-23". 8 Income Tax Assessment Act 1997 9 2 Section 13-1 (after table item headed "unit trusts") 10 Insert: water urban water tax offset ................................................................ Subdivision 402- W 11 3 After section 67-20 12 Insert: 13 67-23 Refundable tax offsets 14 The following * tax offsets are subject to the refundable tax offset 15 rules: 16 Refundable tax offsets Item Subject matter Tax offset 5 private health insurance private health insurance tax offsets under Subdivision 61-G, other than those arising under subsection 61-205(2) 10 children first child tax o ffsets under Subdivision 61-I 15 no-TFN contributions the * tax offset availab le under income Subdivision 295-J 20 films the * tax offsets available under Division 376 25 National Urban Water and urban water tax offset under Desalination Plan Subdivision 402-W 42 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 [Page Break] Main amendments Part 1 Refundable tax offsets Item Subject matter Tax offset 30 life insurance company's the * tax offset availab le under subsection subsidiary join ing 713-545(5) consolidated group 35 research and development the * tax offset availab le under section 73I of the Income Tax Assessment Act 1936 1 Note 1: Subsection 61-205(2) of this Act deals with tax offsets for trustees 2 who are assessed and liable to pay tax under section 98 of the Income 3 Tax Assessment Act 1936. 4 Note 2: For the tax offsets available under Division 207 and 5 Subdivision 210-H (franked distributions), see section 67-25. 6 4 Section 67-25 (heading) 7 Repeal the heading, substitute: 8 67-25 Refundable tax offsets--franked distributions 9 5 Subsection 67-25(1) (heading) 10 Repeal the heading. 11 6 Subsections 67-25(2) to (6) 12 Repeal the subsections. 13 7 Subsection 376-10(1) (note) 14 Omit "subsection 67-25(2A)", substitute "section 67-23". 15 8 Subsection 376-35(1) (note) 16 Omit "subsection 67-25(2A)", substitute "section 67-23". 17 9 Subsection 376-55(1) (note) 18 Omit "subsection 67-25(2A)", substitute "section 67-23". 19 10 After Division 396 20 Insert: 21 Division 402--Environment protection expenditure 22 Table of Subdivisions Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 43 [Page Break] Part 1 Main amendments 1 Guide to Division 402 2 402-W Urban water tax offset 3 Guide to Division 402 4 402-1 What this Division is about 5 This Division provides for certain tax measures in relation to 6 environment protection. 7 Subdivision 402-W--Urban water tax offset 8 Guide to Subdivision 402-W 9 402-750 What this Subdivision is about 10 A company may get a refundable tax offset under the National 11 Urban Water and Desalination Plan for a project that the Water 12 Minister certifies as being eligible for the tax offset. 13 The amount of the urban water tax offset is specified in the 14 certificate. 15 The urban water tax offset is only available for the income years 16 2009-10 to 2012-13. 17 Note: This Subdivision will be repealed on 1 July 2014: see 18 Part 2 of Schedule 4 to the Tax Laws Amendment (2009 19 Measures No. 2) Act 2009. 20 Table of sections 21 402-755 Entitlement to urban water tax offset 22 402-760 Certificates 23 402-765 Amount of urban water tax offset 24 402-770 Revoking certificates 25 402-775 AAT review 26 402-780 Guidelines 44 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 [Page Break] Main amendments Part 1 1 402-755 Entitle ment to urban wate r tax offset 2 (1) A company is entitled to a * tax offset for a project for an income 3 year if the * Water Minister certifies under section 402-760 that the 4 project is eligible for the tax offset for the year. 5 (2) The amount of the * tax offset is the amount specified in the 6 certificate. 7 Note: The tax offset is subject to the refundable tax offset rules: see 8 section 67-23. 9 402-760 Certificates 10 Issuing certificates 11 (1) The * Water Minister may certify, in writing, to a company that a 12 project is eligible for the urban water tax offset for an income year, 13 if: 14 (a) the eligible up-front capital costs of the project (within the 15 meaning given by the guidelines made under 16 section 402-780) are: 17 (i) in the case of a stormwater harvesting project--$4 18 million or more; or 19 (ii) in any other case--$30 million or more; and 20 (b) the other requirements specified in those guidelines are met. 21 (2) The * Water Minister may only issue certificates for the following 22 income years: 23 (a) the 2009-10 income year; 24 (b) the 2010-11 income year; 25 (c) the 2011-12 income year; 26 (d) the 2012-13 income year. 27 (3) In deciding whether to issue a certificate, the * Water Minister must 28 comply with the guidelines made under section 402-780. 29 (4) If the * Water Minister issues a certificate under this section, he or 30 she must, within 30 days, give a copy to the Commissioner. Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 45 [Page Break] Part 1 Main amendments 1 Refusal to issue certificates 2 (5) If the * Water Minister refuses to issue a certificate to a company 3 under this section, he or she must, within 30 days, give written 4 notice of the refusal to the company. 5 (6) The notice must explain that the company may apply to the * AAT 6 for review of the * Water Minister's refusal to issue a certificate to 7 the company (see section 402-775). 8 402-765 Amount of urban wate r tax offset 9 (1) A certificate issued under section 402-760 must specify the amount 10 of the * tax offset. 11 (2) In specifying an amount, the * Water Minister must comply with the 12 guidelines made under section 402-780. 13 (3) The total of the amounts specified in certificates issued to a 14 company for a stormwater harvesting project for one or more 15 income years: 16 (a) must not exceed 50% of the eligible up-front capital costs of 17 the project (within the meaning given by the guidelines made 18 under section 402-780); and 19 (b) must not exceed $20 million. 20 (4) The total of the amounts specified in certificates issued to a 21 company for a project (other than a stormwater harvesting project) 22 for one or more income years: 23 (a) must not exceed 10% of the eligible up-front capital costs of 24 the project (within the meaning given by the guidelines made 25 under section 402-780); and 26 (b) must not exceed $100 million. 27 (5) A certificate issued to a company under section 402-760 must 28 explain that the company may apply to the * AAT for review of the 29 amount specified in the certificate (see section 402-775). 46 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 [Page Break] Main amendments Part 1 1 402-770 Revoking certificates 2 Revoking certificates 3 (1) The * Water Minister may revoke a certificate issued to a company 4 under section 402-760. 5 (2) However, the * Water Minister may only do so in the circumstances 6 provided for in the guidelines made under section 402-780. 7 (3) If the * Water Minister revokes the certificate, he or she must, 8 within 30 days, give to the company and to the Commissioner: 9 (a) written notice of the revocation; and 10 (b) written reasons for the decision to revoke the certificate. 11 (4) The notice given to the company must explain that the company 12 may apply to the * AAT for review of the * Water Minister's 13 revocation of the certificate (see section 402-775). 14 Revoked certificates taken never to have been issued 15 (5) If the * Water Minister revokes a certificate under this section, the 16 certificate is taken, for the purposes of this Subdivision, never to 17 have been issued. 18 (6) Section 170 of the Income Tax Assessment Act 1936 does not 19 prevent the amendment of an assessment for the purpose of giving 20 effect to this Subdivision for an income year if: 21 (a) a certificate issued to a company is revoked under this 22 section after the time the company lodged its * income tax 23 return for the income year; and 24 (b) the amendment is made at any time during the period of 4 25 years starting immediately after the revocation of the 26 certificate. 27 Note: Section 170 of the Income Tax Assessment Act 1936 specifies the 28 usual period within which assessments may be amended. 29 Certificates cannot be varied 30 (7) A certificate issued under section 402-760 cannot be varied. Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 47 [Page Break] Part 1 Main amendments 1 402-775 AAT review 2 A company may apply to the * AAT for review of a decision of the 3 * Water Minister under this Subdivision: 4 (a) to refuse to issue a certificate to the company; or 5 (b) to specify a particular amount in a certificate issued to the 6 company; or 7 (c) to revoke a certificate issued to the company. 8 402-780 Guidelines 9 (1) The * Water Minister must, by legislative instrument, make 10 guidelines about issuing and revoking certificates under this 11 Subdivision. 12 (2) Despite subsection 14(2) of the Legislative Instruments Act 2003, 13 the guidelines may make provision in relation to a matter by 14 applying, adopting or incorporating any matter contained in an 15 instrument or other writing as in force or existing from time to time 16 if: 17 (a) the instrument or other writing is issued by the * Water 18 Minister or by the * Water Department; and 19 (b) the instrument or other writing, as in force or existing from 20 time to time, is publicly available. 21 (3) A legislative instrument made under subsection (1) does not take 22 effect before the end of the period in which it could be disallowed 23 in either House of the Parliament. 24 11 Subsection 995-1(1) 25 Insert: 26 Water Department means the Department that: 27 (a) deals with matters arising under section 1 of the Water Act 28 2007; and 29 (b) is administered by the * Water Minister. 30 12 Subsection 995-1(1) 31 Insert: 32 Water Minister means the Minister administering section 1 of the 33 Water Act 2007. 48 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 [Page Break] Main amendments Part 1 1 Taxation (Interest on Overpayments and Early Payments) Act 2 1983 3 13 Subsection 3(1) (note at the end of the definition of 4 income tax crediting amount) 5 Omit "Section 67-25", substitute "Division 67". 6 14 Subsection 8E(1) (note) 7 Omit "Section 67-25", substitute "Division 67". 8 15 Subsection 8G(1) (note) 9 Omit "Section 67-25", substitute "Division 67". 10 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 49 [Page Break] Part 2 Sunsetting on 1 July 2014 1 2 Part 2--Sunsetting on 1 July 2014 3 Income Tax Assessment Act 1997 4 16 Section 13-1 (table item headed "water") 5 Repeal the item. 6 17 Section 67-23 (table item 25) 7 Repeal the item. 8 18 Subdivision 402-W 9 Repeal the Subdivision. 10 19 Transitional--revoking certificates 11 Revoking certificates 12 (1) Subject to subitem (3) and despite the repeal of section 402-770 of the 13 Income Tax Assessment Act 1997 by this Part, that section continues to 14 apply, after the commencement of this Part, to a certificate issued under 15 former section 402-760 of that Act until the end of the period of 10 16 years starting on the day the certificate was issued. 17 (2) For the purposes of subitem (1), a reference in section 402-770 of the 18 Income Tax Assessment Act 1997 to guidelines made under 19 section 402-780 of that Act is taken, from the commencement of this 20 Part, to be a reference to those guidelines as in force immediately before 21 that commencement. 22 (3) Despite the repeal of subsection 402-770(6) of the Income Tax 23 Assessment Act 1997 by this Part, that subsection continues to apply, 24 after the commencement of this Part, in relation to the revocation of a 25 certificate occurring before or after that commencement. 26 AAT review 27 (4) Despite the repeal of section 402-775 of the Income Tax Assessment Act 28 1997 by this Part, that section continues to apply, after the 29 commencement of this Part, in relation to a decision to revoke a 30 certificate made before or after that commencement. 31 50 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 [Page Break] Amend ments commencing on Royal Assent Part 1 1 2 Schedule 5--Deductible gift recipients 3 Part 1--Amendments commencing on Royal Assent 4 Income Tax Assessment Act 1997 5 1 Subsection 30-20(2) (at the end of the table) 6 Add: 1.2.18 The Australasian College for Emergency the gift must be made Medicine after 2 February 2009 7 2 Subsection 30-25(2) (table item 2.2.34) 8 Omit "1 July 2008", substitute "1 July 2009". 9 3 Subsection 30-40(2) (at the end of the table) 10 Add: 3.2.11 Grattan Institute the gift must be made after 4 March 2009 and before 5 March 2011 11 4 Subsection 30-45(2) (after table item 4.2.31) 12 Insert: 4.2.31 ACT Region Crime Stoppers Limited the gift must be made A after 12 February 2009 13 5 Section 30-105 (table item 13.2.8) 14 Omit "1 January 2008", substitute "1 January 2011". 15 6 Section 30-105 (table item 13.2.12) (the item 13.2.12 dealing 16 with the Bunbury Diocese Cathedral Rebuilding Fund) 17 Repeal the item, substitute: 13.2.14 Bunbury Diocese Cathedral Rebuilding Fund the gift must be made A after 18 December 2006 and before 19 December 2010 18 7 Section 30-105 (at the end of the table) 19 Add: Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 51 [Page Break] Part 1 A mend ments commencing on Royal Assent 13.2.17 PWR Melbourne 2009 Limited the gift must be made after 2 February 2009 and before 1 January 2010 1 8 Section 30-315 (after table item 2AAA) 2 Insert: 2AAB ACT Region Crime Stoppers Limited item 4.2.31A 3 9 Section 30-315 (after table item 9AA) 4 Insert: 9AB Australasian College for Emergency item 1.2.18 Medicine 5 10 Section 30-315 (table item 28ABA) 6 Omit "item 13.2.12", substitute "13.2.14A". 7 11 Section 30-315 (after table item 52) 8 Insert: 52A Grattan Institute item 3.2.11 9 12 Section 30-315 (after table item 93) 10 Insert: 94 PWR Melbourne 2009 Limited item 13.2.17 11 52 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 [Page Break] Other amend ments Part 2 1 2 Part 2--Other amendments 3 Tax Laws Amendment (Repeal of Inoperative Provisions) Act 4 2006 5 13 Item 14 of Schedule 3 (heading) 6 Omit "13.2.8", substitute "13.2.9". 7 14 Item 15 of Schedule 3 (heading) 8 Omit ", 110AA and 112AF", substitute " and 110AA". 9 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 53 [Page Break] Part 3 Application provision 1 2 Part 3--Application provision 3 15 Application of Part 1 amendments 4 The amendments made by Part 1 of this Schedule apply in relation to 5 assessments for: 6 (a) the 2007-08 income year; and 7 (b) later income years. 8 54 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 [Page Break] Amend ments commencing on Royal Assent Part 1 1 2 Schedule 6--ABN changes 3 Part 1--Amendments commencing on Royal Assent 4 A New Tax System (Australian Business Number) Act 1999 5 1 Subsection 9(1) 6 After "apply", insert "to the * Registrar". 7 2 Subsections 9(2) and (3) 8 Repeal the subsections, substitute: 9 (2) * Your application must be in the * approved form. 10 (3) That form may request, but not compel, * you to provide your * TFN 11 or that of an * associate. 12 Note: Including a TFN in an app lication will not be an offence against 13 subsection 8WB(1) of the Taxation Administration Act 1953 (see 14 paragraph 8WB(1A)(a) of that Act). 15 3 After paragraph 10(1)(c) 16 Insert: 17 (ca) if details about an * associate of yours were requested in the 18 * approved form for registration--the Registrar is satisfied 19 that the identity of the associate has been established; and 20 4 Paragraph 10(2)(b) 21 After "your identity", insert ", or that of an *associate referred to in 22 paragraph (1)(ca),". 23 5 At the end of subsection 11(1) 24 Add: 25 Note: A decision setting the date of effect of your registration is a 26 reviewable ABN decision. 27 6 Subsection 11(3) (note) 28 Omit "a registered entity", substitute "an entity registered under this 29 section". Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 55 [Page Break] Part 1 A mend ments commencing on Royal Assent 1 7 At the end of subsection 12(1) 2 Add: 3 Note: This subsection applies only to entities registered under section 11. 4 8 Subsection 13(1) (note) 5 Repeal the note, substitute: 6 Note: A decision refusing to register you is a reviewable ABN decision. 7 9 Paragraph 14(2)(b) 8 Repeal the paragraph, substitute: 9 (b) must be in the * approved form. 10 10 Subsection 14(2) (note) 11 Repeal the note. 12 11 Section 15 13 Repeal the section, substitute: 14 15 Obligation to give Registrar information if requested 15 (1) The * Registrar may request an * entity to give the Registrar 16 information in accordance with the following table. The entity 17 must comply with the request. 18 Entities that can be requested to gi ve informati on Item These enti ties ... can be requested to gi ve this informati on ... 1 * You, if you are registered in the informat ion that is relevant to: * Australian Business Register (a) your entitlement to be registered; or (b) confirming your identity; or (c) the details entered in relat ion to you in the Register 2 * Your * associate (if any) entered in informat ion relevant to confirming the * Australian Business Register in the associate's identity relation to you 19 Note: This Act is a taxation law for the purposes of the Taxation 20 Administration Act 1953. If an entity fails to comply with this 56 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 [Page Break] Amend ments commencing on Royal Assent Part 1 1 subsection, the entity commits an offence against section 8C of that 2 Act. 3 (2) A request under subsection (1) to an *entity: 4 (a) is to be made by notice in writing to the entity; and 5 (b) may ask the entity to give the information in writing; and 6 (c) must specify: 7 (i) the information the entity is to give; and 8 (ii) the period within which the entity is to give the 9 information. 10 The period specified under subparagraph (c)(ii) must end at least 11 14 days after the notice is given. 12 Note: Section 12 deals with giving notice to an entity registered under 13 section 11. 14 (3) If the request asks the *entity to give the information in writing, the 15 information: 16 (a) must be lodged with the * Registrar; and 17 (b) must be in the * approved form. 18 12 Subsection 17(1) (note) 19 Omit "a registered entity", substitute "an entity registered under 20 section 11". 21 13 Subsection 18(1) (note) 22 Omit "Note", substitute "Note 1". 23 14 At the end of subsection 18(1) 24 Add: 25 Note 2: A decision to cancel your registration is a reviewable ABN decision. 26 15 Subsection 18(2) (note 1) 27 Repeal the note, substitute: 28 Note 1: A decision setting the date of effect of a cancellation is a reviewable 29 ABN decision. 30 16 Subsection 18(2) (note 2) 31 Omit "a registered entity", substitute "an entity registered under 32 section 11". Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 57 [Page Break] Part 1 A mend ments commencing on Royal Assent 1 17 Subsection 18(4) 2 Repeal the subsection, substitute: 3 At your request 4 (4) The * Registrar may cancel * your registration if you apply to the 5 Registrar for cancellation of the registration in the * approved form. 6 Note: A decision to refuse to cancel your registration is a reviewable ABN 7 decision. 8 18 Subsection 18(5) (note) 9 Repeal the note, substitute: 10 Note 1: Section 12 deals with giving notice to an entity registered under 11 section 11. 12 19 At the end of subsection 18(5) 13 Add: 14 Note 2: A decision setting the date of effect of a cancellation is a reviewable 15 ABN decision. 16 20 Subsection 19(2) (note) 17 Omit "a registered entity", substitute "an entity registered under 18 section 11". 19 21 Division 7 20 Repeal the Division. 21 22 Division 8 22 Repeal the Division, substitute: 23 Division 8--Review of reviewable ABN decisions 24 21 Review of reviewable ABN decisions 25 (1) * You may object, in the manner set out in Part IVC of the Taxation 26 Administration Act 1953, against a decision you are dissatisfied 27 with that is a * reviewable ABN decision. 28 (2) Each of the following decisions is a reviewable ABN decision: 29 58 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 [Page Break] Amend ments commencing on Royal Assent Part 1 Reviewable AB N decisions Item Decision Provision under which decision is made 1 Setting the date of effect of * your registration subsection 11(1) 2 Refusing to register * you section 13 3 Cancelling * your registration subsection 18(1) 4 Refusing to cancel * your registration subsection 18(4) 5 Setting the date of effect of a cancellation subsection 18(2) or (5) 6 Refusing an application not to disclose details subsection 26(4) or 27(7) 1 (3) Part IVC of the Taxation Administration Act 1953 applies in 2 relation to a * reviewable ABN decision as if references in that Part 3 to the Commissioner of Taxation were references to the * Registrar. 4 23 After paragraph 25(2)(a) 5 Insert: 6 (aa) details about the entity's * associates that were requested in 7 the *approved form for registration in that Register; 8 24 At the end of subsection 26(4) 9 Add: 10 Note: A decision refusing an application not to disclose details is a 11 reviewable ABN decision. 12 25 At the end of subsection 27(7) 13 Add: 14 Note: A decision refusing an application not to disclose details is a 15 reviewable ABN decision. 16 26 Division 10A 17 Repeal the Division. 18 27 After section 29 19 Insert: Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 59 [Page Break] Part 1 A mend ments commencing on Royal Assent 1 29A Adjustments to details 2 (1) This section applies if the * Registrar is satisfied that details entered 3 in relation to an * entity in the * Australian Business Register are 4 incorrect and the Registrar has access to details that the Registrar 5 believes to be the correct ones. 6 (2) The * Registrar may adjust the details accordingly. 7 28 Section 41 8 Insert: 9 approved form has the same meaning as in the * ITAA 1997. 10 29 Section 41 (definition of electronic signature) 11 Repeal the definition. 12 30 Section 41 (definition of lodged electronically) 13 Repeal the definition. 14 31 Section 41 15 Insert: 16 reviewable ABN decision has the meaning given by section 21. 17 32 Application 18 (1) The amendments made by items 1, 2, 3, 4, 23 and 28 of this Schedule 19 apply in relation to applications made under section 9 of the A New Tax 20 System (Australian Business Number) Act 1999 after the 21 commencement of those items. 22 (2) The amendments made by items 9 and 10 of this Schedule apply in 23 relation to changes in circumstances, for the purposes of paragraph 24 14(1)(c) of that Act, happening after the commencement of those items. 25 (3) The amendment made by item 11 of this Schedule applies in relation to 26 requests given under subsection 15(1) of that Act after the 27 commencement of that item. 28 (4) The amendment made by item 17 of this Schedule applies in relation to 29 applications made under subsection 18(4) of that Act after the 30 commencement of that item. 60 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 [Page Break] Amend ments commencing on Royal Assent Part 1 1 Product Grants and Benefits Administration Act 2000 2 33 Paragraph 57(1)(a) 3 After "address shown in the Register", insert "under subsection 25(2) of 4 the A New Tax System (Australian Business Number) Act 1999". 5 Taxation Administration Act 1953 6 34 Paragraph 105-140(1)(a) in Schedule 1 7 After "address shown in the Register", insert "under subsection 25(2) of 8 the A New Tax System (Australian Business Number) Act 1999". 9 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 61 [Page Break] Part 2 A mend ments commencing on Proclamation 1 2 Part 2--Amendments commencing on Proclamation 3 A New Tax System (Australian Business Number) Act 1999 4 35 Before subsection 3(1) 5 Insert: 6 Main object 7 36 Before subsection 3(3) 8 Insert: 9 Reducing registration and reporting requirements 10 37 At the end of section 3 11 Add: 12 Multi-agency dealings 13 (4) The objects of this Act also include allowing the * Registrar to 14 register and maintain details about representatives of * businesses 15 that are registered under this Act, for the purpose of facilitating 16 electronic dealings by those businesses with * government entities. 17 38 Section 9 (heading) 18 Repeal the heading, substitute: 19 9 Applying for an ABN 20 39 After section 9 21 Insert: 22 9A Applying for registration of representatives 23 (1) If * you are registered in the * Australian Business Register, or you 24 are applying to be so registered, you may make an application to 25 the * Registrar requesting the Registrar to register details about a 26 nominated representative (who is an individual) for the purpose of 27 facilitating your electronic dealings with * government entities. 62 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 [Page Break] Amend ments commencing on Proclamation Part 2 1 (2) An application must be in the * approved form. 2 (3) That form may request, but not compel, the provision of: 3 (a) the * TFN of the representative; and 4 (b) the TFN of the individual (the nominating individual) who is 5 to sign the declaration in the form. 6 Note: Including a TFN in an application will not be an offence against 7 subsection 8WB(1) of the Taxation Administration Act 1953 (see 8 paragraph 8WB(1A)(a) of that Act). 9 40 After section 10 10 Insert: 11 10A Registrar must register your representative if conditions met 12 (1) The * Registrar must register * your representative in the * Australian 13 Business Register if: 14 (a) an application has been made under section 9A; and 15 (b) the Registrar is satisfied that the identity of the nominating 16 individual (see paragraph 9A(3)(b)) has been established; and 17 (c) if the representative is to be authorised to nominate other 18 representatives of yours--the Registrar is satisfied that the 19 identity of the representative has been established; and 20 (d) the representative's details are not already registered in the 21 * Australian Business Register in relation to you. 22 (2) If * your proposed representative is to be authorised to nominate 23 other representatives of yours, the * Registrar may request you or 24 your proposed representative to give the Registrar specified 25 information or a specified document the Registrar needs to be 26 satisfied that the identity of the proposed representative is 27 established. 28 41 Subsection 11(1) 29 After "* you", insert "(for an application under section 9)". 30 42 After section 11 31 Insert: Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 63 [Page Break] Part 2 A mend ments commencing on Proclamation 1 11A Steps taken by Registrar to register your representative 2 The * Registrar registers * your representative (for an application 3 under section 9A) by entering in the * Australian Business Register 4 in relation to you: 5 (a) the name of the representative; and 6 (b) the representative's email address; and 7 (c) the date of effect of the registration. 8 43 Subsection 13(1) 9 After "for registration", insert "under section 9 or your application for 10 registration of your representative under section 9A". 11 44 Subsection 13(1) (note) 12 After "register you", insert "or your representative". 13 45 Subsection 13(2) 14 After "for registration", insert "under section 9, or your application for 15 registration of your representative under section 9A,". 16 46 Subsection 13(4) 17 Repeal the subsection, substitute: 18 (4) For the purposes of measuring the 28 days mentioned in 19 subsection (2) for * your application under section 9, disregard each 20 period (if any): 21 (a) starting on the day when the * Registrar requests you under 22 subsection 10(2) to give the Registrar specified information 23 or a specified document; and 24 (b) ending at the end of the day you give the Registrar the 25 specified information or document. 26 (5) For the purposes of measuring the 28 days mentioned in 27 subsection (2) for * your application under section 9A, disregard 28 each period (if any): 29 (a) starting on the day when the * Registrar requests you, or your 30 proposed representative, under subsection 10A(2) to give the 31 Registrar specified information or a specified document; and 32 (b) ending at the end of the day you give the Registrar the 33 specified information or document. 64 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 [Page Break] Amend ments commencing on Proclamation Part 2 1 47 Subsection 15(1) (at the end of the table) 2 Add: 3 Either: informat ion relevant to: (a) * your representative (if any) (a) confirming the representative's registered in the * Australian identity; or Business Register in relat ion to (b) the details entered in relation to you; or the representative in the Register (b) you 3 48 After subsection 18(1) 4 Insert: 5 (1A) The * Registrar may cancel the registration of * your representative 6 in the * Australian Business Register if satisfied that: 7 (a) your registration is cancelled under subsection (1); or 8 (b) the representative no longer represents you; or 9 (c) the representative is registered under an identity that is not 10 the representative's true identity; or 11 (d) the representative's identity is no longer satisfactorily 12 established. 13 Note: A decision to cancel the registration of your representative is a 14 reviewable ABN decision. 15 49 Subsection 18(4) 16 Repeal the subsection, substitute: 17 At your request 18 (4) The * Registrar may: 19 (a) cancel * your registration if you apply to the Registrar for 20 cancellation of the registration in the * approved form; or 21 (b) cancel the registration of your representative, if you apply to 22 the Registrar for cancellation of the registration in the 23 approved form. 24 Note: A decision to refuse to cancel your registration or that of your 25 representative is a reviewable ABN decision. 26 50 Subsection 19(1) 27 After "* your registration", insert ", or the registration of your 28 representative,". Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 65 [Page Break] Part 2 A mend ments commencing on Proclamation 1 51 Subsection 21(2) 2 Repeal the subsection, substitute: 3 (2) Each of the following decisions is a reviewable ABN decision: 4 Reviewable AB N decisions Item Decision Provision under which decision is made 1 Setting the date of effect of * your registration subsection 11(1) 2 Refusing to register * you or your representative section 13 3 Cancelling * your registration subsection 18(1) 4 Cancelling the registration of * your subsection 18(1A) representative 5 Refusing to cancel * your registration or that of subsection 18(4) your representative 6 Setting the date of effect of a cancellation subsection 18(2) or (5) 7 Refusing an application not to disclose details subsection 26(4) or 27(7) 5 52 Division 9 (heading) 6 Repeal the heading, substitute: 7 Division 9--Offences 8 53 Section 23 (heading) 9 Repeal the heading, substitute: 10 23 Identification offences 11 54 At the end of section 23 12 Add: 13 (3) * You commit an offence if: 14 (a) you purport to identify yourself as being registered under this 15 Act as the representative of an * entity; and 16 (b) you are not the registered representative of the entity. 66 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 [Page Break] Amend ments commencing on Proclamation Part 2 1 Penalty: Imprisonment for 2 years. 2 55 At the end of section 25 (before the notes) 3 Add: 4 (3) Under section 11A, the * Registrar enters in the * Australian 5 Business Register in relation to each representative registered in 6 the Register: 7 (a) the representative's name; and 8 (b) the representative's email address; and 9 (c) the date of effect of the registration. 10 (4) The * Registrar must also enter in the *Australian Business Register 11 in relation to a representative the details prescribed in the 12 regulations. 13 56 Subsection 29A(1) 14 Repeal the subsection, substitute: 15 (1) This section applies if the * Registrar is satisfied that: 16 (a) details entered in relation to an * entity in the * Australian 17 Business Register; or 18 (b) details entered in relation to an entity's representative in that 19 Register; 20 are incorrect and the Registrar has access to details that the 21 Registrar believes to be the correct ones. 22 57 At the end of subsection 30(3) 23 Add: 24 ; (e) the entrusted person is the Registrar and the disclosure: 25 (i) is of information relating to an individual who is, or 26 who has been, registered as an * entity's representative in 27 the * Australian Business Register; and 28 (ii) is for the purposes of facilitating the entity's electronic 29 dealings with * government entities or for maintaining 30 details in the Register. 31 Note: A disclosure under paragraph (3)(e) could, for example, be for the 32 purpose of administering or cancelling the representative's 33 registration. 34 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 67 [Page Break] Part 1 Fuel Tax Act 2006 1 2 Schedule 7--Fuel tax 3 Part 1--Fuel Tax Act 2006 4 1 Section 41-5 (note 1) 5 Omit "Subdivisions 41-B and 45-A", substitute "Subdivision 41-B". 6 2 Section 44-1 (note) 7 Repeal the note. 8 3 Division 45 9 Repeal the Division. 10 4 Subsection 60-5(1) (note 1 at the end of the definition of 11 Total fuel tax credits) 12 Repeal the note. 13 5 Subsection 60-5(1) (note 2 at the end of the definition of 14 Total fuel tax credits) 15 Omit "2". 16 6 Subsection 65-5(5) 17 Repeal the subsection. 18 7 Subsection 65-10(1) 19 Omit "(1)". 20 8 Subsection 65-10(2) 21 Repeal the subsection. 22 9 Section 110-5 (paragraph (a) of the definition of decreasing 23 fuel tax adjustment) 24 Omit "and subsection 45-5(2)". 25 10 Section 110-5 (definition of Environment Minister) 26 Repeal the definition. 27 11 Section 110-5 (definition of Environment Secretary) 68 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 [Page Break] Fuel Tax Act 2006 Part 1 1 Repeal the definition. 2 12 Section 110-5 (definition of Greenhouse Challenge Plus 3 Programme) 4 Repeal the definition. 5 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 69 [Page Break] Part 2 Fuel Tax (Consequential and Transitional Provisions) Act 2006 1 2 Part 2--Fuel Tax (Consequential and Transitional 3 Provisions) Act 2006 4 13 Item 35 of Schedule 3 (heading) 5 Omit "Subsection 65-10(1)", substitute "Section 65-10". 6 14 Item 40 of Schedule 3 (heading) 7 Omit "Subsection 65-10(1)", substitute "Section 65-10". 8 15 Item 41 of Schedule 3 9 Omit "and subsection 45-5(2)". 10 70 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 [Page Break] Application provisions Part 3 1 2 Part 3--Application provisions 3 16 Application of Part 1 amendments 4 Meaning of programme end time 5 (1) In this Part: 6 programme end time means the time occurring just before the 7 commencement of Part 1 of this Schedule. 8 Application 9 (2) The amendments made by Part 1 of this Schedule apply in relation to 10 tax periods ending in financial years commencing on or after 1 July 11 2009. 12 (3) To avoid doubt, despite the repeal of subsection 65-5(5) of the Fuel Tax 13 Act 2006 by that Part, subsection 65-5(4) of that Act continues not to 14 apply in respect of the whole or a part of a fuel tax credit that, just 15 before the programme end time, you were not entitled to take into 16 account under subsection 45-5(1) of that Act. 17 Decreasing fuel tax adjustment 18 (4) Subitem (5) applies if, at the programme end time, you were not a 19 member of a programme mentioned in subsection 45-5(1) of the Fuel 20 Tax Act 2006. 21 (5) The Fuel Tax Act 2006 is taken to have had effect, at the programme 22 end time, as if you became a member of such a programme at that time. 23 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 71 [Page Break] Part 1 A mend ments commencing on Royal Assent 1 2 Schedule 8--Government grants for 3 businesses in relation to 2009 4 Victorian bushfires 5 Part 1--Amendments commencing on Royal Assent 6 Income Tax Assessment Act 1997 7 1 Section 11-55 (after table item headed "demutualisation of 8 private health insurers") 9 Insert: disasters 2009 Victorian bushfires--Clean-up and Restoration Grants for primary producers ............................................ 59-50 2009 Victorian bushfires--Clean-up and Restoration Grants for small businesses ............................................... 59-50 10 2 At the end of Division 59 11 Add: 12 59-50 Clean-up and Restoration Grants for 2009 Victorian bushfires 13 The following payments administered by the Rural Finance 14 Corporation of Victoria in relation to the Victorian bushfires of 15 2009 are not assessable income and are not * exempt income: 16 (a) Clean-up and Restoration Grants for primary producers; 17 (b) Clean-up and Restoration Grants for small businesses. 18 72 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 [Page Break] Sunsetting on 1 July 2011 Part 2 1 2 Part 2--Sunsetting on 1 July 2011 3 Income Tax Assessment Act 1997 4 3 Section 11-55 (table item headed "disasters") 5 Repeal the item. 6 4 Section 59-50 7 Repeal the section. 8 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009 73 [Page Break] Part 3 Application provision 1 2 Part 3--Application provision 3 5 Application of Part 1 amendments 4 The amendments made by Part 1 of this Schedule apply in relation to: 5 (a) the 2008-09 income year; and 6 (b) the 2009-10 income year. 74 Tax Laws Amendment (2009 Measures No. 2) Bill 2009 No. , 2009