2008-2009 The Parliament of the Commonwealth of Australia HOUSE OF REPRESENTATIVES Presented and read a first time Tax Laws Amendment (2009 Measures No. 4) 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 4 Amendment of assessments ................................................................ 3 Schedule 1--Research and development 4 Income Tax Assessment Act 1936 4 Schedule 2--Private ancillary funds 5 Part 1--Amendments commencing on 1 October 2009 5 A New Tax System (Australian Business Number) Act 1999 5 Income Tax Assessment Act 1936 5 Income Tax Assessment Act 1997 5 Taxation Administration Act 1953 7 Part 2--Amendments commencing on 1 January 2010 19 Income Tax Assessment Act 1997 19 Taxation Administration Act 1953 19 Part 3--Transitional provisions 20 Div ision 1--Preliminary 20 Div ision 2--Declared prescribed private funds 20 Div ision 3--Transitional private ancillary funds 20 Schedule 3--Demutualisation of friendly society health or life insure rs 23 Part 1--Main amendment 23 Income Tax Assessment Act 1997 23 Part 2--Related amendments 43 Income Tax Assessment Act 1936 43 Income Tax Assessment Act 1997 43 Income Tax (Transitional Provisions) Act 1997 48 Schedule 4--Consolidation: application of losses with nil available fraction 50 Income Tax Assessment Act 1936 50 i Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] Schedule 5--Minor amendme nts 54 Part 1--References to Ministers, Departments and Secretaries 54 Div ision 1--A mend ments commencing on Royal Assent 54 Excise Act 1901 54 Excise Tariff Act 1921 55 Fringe Benefits Tax (Application to the Commonwealth) Act 1986 55 Fringe Benefits Tax Assessment Act 1986 56 Income Tax Assessment Act 1936 56 Income Tax Assessment Act 1997 67 Income Tax (Transitional Provisions) Act 1997 78 Petroleum Resource Rent Tax Assessment Act 1987 78 Superannuation Contributions Tax (Application to the Commonwealth) Act 1997 80 Taxation Administration Act 1953 81 Div ision 2--Other amend ments 81 Income Tax Assessment Act 1997 81 Taxation Administration Act 1953 81 Part 2--Repeal of Part IV of the Taxation Administration Act 1953 83 Administrative Decisions (Judicial Review) Act 1977 83 Banking Act 1959 83 Taxation Administration Act 1953 83 Part 3--Amendments relating to foreign income tax offsets and foreign losses 85 Income Tax Assessment Act 1997 85 Income Tax (Transitional Provisions) Act 1997 85 Part 4--Other amendments 89 A New Tax System (Australian Business Number) Act 1999 89 Fringe Benefits Tax Assessment Act 1986 89 Income Tax Assessment Act 1936 91 Income Tax Assessment Act 1997 92 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 ii [Page Break] Tax Laws Amendment (2007 Measures No. 5) Act 2007 95 Part 5--Transitional provision 96 iii Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [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. 4) 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. 4) 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, 1 October 2009. 1 October 2009 Part 1 4. Schedule 2, 1 January 2010. 1 January 2010 Part 2 5. Schedule 2, 1 October 2009. 1 October 2009 Part 3 6. Schedules 3 The day on which this Act receives the and 4 Royal Assent. 7. Schedule 5, The day on which this Act receives the Part 1, Division 1 Royal Assent. 8. Schedule 5, The later of: items 237 and 238 (a) immediately after the start of the day on which this Act receives the Royal Assent; and (b) the time item 1 of Schedule 1 to the Nation Building Program (National Land Transport) Amendment Act 2009 commences. However, the provision(s) covered by this table item do not commence at all if the event mentioned in paragraph (b) does not occur. 9. Schedule 5, The later of: items 239 to 243 (a) the start of the day on which this Act receives the Royal Assent; and (b) immed iately after the commencement of item 1 of Schedule 2 to the Migration Legislation Amendment (Worker Protection) Act 2008. 10. Schedule 5, The day on which this Act receives the 2 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] Column 1 Column 2 Column 3 Provision(s) Commencement Date/Details Parts 2 to 5 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 4 Amendment of assessments 13 Section 170 of the Income Tax Assessment Act 1936 does not 14 prevent the amendment of an assessment if: 15 (a) the assessment was made before the commencement of this 16 section; and 17 (b) the amendment is made within 2 years after that 18 commencement; and 19 (c) the amendment is made for the purpose of giving effect to 20 Schedule 4. 21 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 3 [Page Break] 1 Schedule 1--Research and development 2 3 Income Tax Assessment Act 1936 4 1 Paragraph 73J(1)(c) 5 Omit "$1,000,000", substitute "$2,000,000". 6 2 Application 7 The amendment made by this Schedule applies to years of income 8 starting on or after 1 July 2009. 9 4 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] Amend ments commencing on 1 October 2009 Part 1 1 Schedule 2--Private ancillary funds 2 Part 1--Amendments commencing on 1 October 3 2009 4 A New Tax System (Australian Business Number) Act 1999 5 1 Paragraph 26(3)(ga) 6 After "section 426-65", insert "or 426-115". 7 Income Tax Assessment Act 1936 8 2 Subsection 6(1) 9 Insert: 10 private ancillary fund has the meaning given by section 426-105 11 in Schedule 1 to the Taxation Administration Act 1953. 12 3 At the end of subsection 16(4) 13 Add: 14 ; or (n) if the information relates to the non-compliance of a private 15 ancillary fund or charity (or a trustee of a private ancillary 16 fund or charity) with a law of the Commonwealth, a State or 17 a Territory--the Attorney-General of a State or Territory for 18 the purposes of the administration of a law of the State or 19 Territory governing trusts or charities. 20 Income Tax Assessment Act 1997 21 4 Subsection 30-15(2) (table item 2, column headed 22 "Recipient") 23 Omit "* prescribed private fund", substitute "* private ancillary fund". 24 5 Subsection 30-15(2) (paragraph (c) of the cell at table 25 item 2, column headed "Special conditions") 26 Omit ", unless the fund is a prescribed private fund". 27 6 Paragraph 30-17(1)(b) Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 5 [Page Break] Part 1 A mend ments commencing on 1 October 2009 1 Repeal the paragraph. 2 7 Subsection 30-125(1) 3 Repeal the subsection, substitute: 4 Endorsement of an entity that is a fund, authority or institution 5 (1) An entity is entitled to be endorsed as a * deductible gift recipient 6 if: 7 (a) the entity has an *ABN; and 8 (b) the entity is a fund, authority or institution that: 9 (i) is described (but not by name) in item 1, 2 or 4 of the 10 table in section 30-15; and 11 (ii) is not described by name in Subdivision 30-B if it is 12 described in item 1 of that table; and 13 (iii) meets the relevant conditions (if any) identified in the 14 column headed "Special conditions" of the item of that 15 table in which it is described; and 16 (c) the entity meets the requirements of subsection (6), unless: 17 (i) the entity is established by an Act; and 18 (ii) the Act (or another Act) does not provide for the 19 winding up or termination of the entity; and 20 (d) in the case of a * private ancillary fund: 21 (i) the fund complies with the rules in the * private ancillary 22 fund guidelines; and 23 (ii) all of the trustees of the fund comply with those rules. 24 8 Subparagraph 30-227(2)(a)(iii) 25 Repeal the subparagraph. 26 9 After subsection 30-229(2) 27 Insert: 28 (2A) If: 29 (a) the * deductible gift recipient is: 30 (i) a fund, authority or institution; or 31 (ii) a deductible gift recipient only because it is endorsed 32 under Subdivision 30-BA as a deductible gift recipient 33 for the operation of a fund, authority or institution; and 6 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] Amend ments commencing on 1 October 2009 Part 1 1 (b) the fund, authority or institution is covered by item 1, 2 or 4 2 of the table in section 30-15; 3 the statement may specify that the fund, authority or institution is 4 covered by that item. 5 10 Paragraph 31-10(1)(b) 6 Omit "* prescribed private fund", substitute "* private ancillary fund". 7 11 Paragraph 31-10(2)(b) 8 Omit "or be a * prescribed private fund". 9 12 Subsection 995-1(1) 10 Insert: 11 constitutional corporation means: 12 (a) a corporation to which paragraph 51(xx) of the Constitution 13 applies; or 14 (b) a body corporate that is incorporated in a Territory. 15 13 Subsection 995-1(1) (definition of prescribed private fund) 16 Repeal the definition. 17 14 Subsection 995-1(1) 18 Insert: 19 private ancillary fund has the meaning given by section 426-105 20 in Schedule 1 to the Taxation Administration Act 1953. 21 15 Subsection 995-1(1) 22 Insert: 23 private ancillary fund guidelines has the meaning given by 24 section 426-110 in Schedule 1 to the Taxation Administration Act 25 1953. 26 Taxation Administration Act 1953 27 16 Subsection 2(1) 28 Insert: Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 7 [Page Break] Part 1 A mend ments commencing on 1 October 2009 1 private ancillary fund has the meaning given by section 426-105 2 in Schedule 1. 3 17 Subsection 3C(4) 4 Repeal the subsection, substitute: 5 (4) Nothing in subsection (2) prohibits the Commissioner, a Second 6 Commissioner, a Deputy Commissioner or a person authorised by 7 the Commissioner, a Second Commissioner or a Deputy 8 Commissioner from communicating any information to: 9 (a) a person performing, as an officer, duties in relation to a 10 taxation law, for the purpose of enabling the person to 11 perform those duties; or 12 (b) if the information relates to the non-compliance of a private 13 ancillary fund or charity (or a trustee of a private ancillary 14 fund or charity) with a law of the Commonwealth, a State or 15 a Territory--the Attorney-General of a State or Territory for 16 the purposes of the administration of a law of the State or 17 Territory governing trusts and charities. 18 18 Subsection 250-10(2) in Schedule 1 (table item 140, 19 column headed "Provision") 20 Omit "Divisions 284, 286 and 288", substitute "298-15" 21 19 Paragraph 298-5(c) in Schedule 1 22 Omit "or Division 16", substitute ", Division 16 or section 426-120". 23 20 Subsection 353-20(3) in Schedule 1 24 Repeal the subsection, substitute: 25 (3) The Minister may only disclose information provided under 26 subsection (2) for a purpose relating to the removal of the name of 27 the * deductible gift recipient from Division 30 of the Income Tax 28 Assessment Act 1997. 29 21 At the end of section 426-1 in Schedule 1 30 Add: 31 Subdivision 426-D deals with a type of private philanthropic trust 32 fund known as a private ancillary fund. 8 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] Amend ments commencing on 1 October 2009 Part 1 1 22 At the end of Division 426 in Schedule 1 2 Add: 3 Subdivision 426-D--Private ancillary funds 4 Guide to Subdivision 426-D 5 426-100 What this Subdivision is about 6 This Subdivision deals with a type of private philanthropic trust 7 fund known as a private ancillary fund. 8 The Minister may make guidelines determining when private 9 ancillary funds are entitled to be endorsed as deductible gift 10 recipients. 11 This Subdivision also provides for: 12 (a) penalties for trustees who fail to comply with the 13 private ancillary fund guidelines, and the liability 14 of directors of trustees to pay those penalties in 15 certain circumstances; and 16 (b) powers for the Commissioner to suspend or 17 remove trustees who breach their obligations. 18 Table of sections 19 Private ancillary funds 20 426-105 Private ancillary funds 21 426-110 Private ancillary fund guidelines 22 426-115 Australian Business Register must show private ancillary fund status 23 Administrati ve penalties 24 426-120 Administrative penalties for trustees of private ancillary funds 25 Suspension and removal of trustees 26 426-125 Suspension or removal of trustees 27 426-130 Commissioner to appoint acting trustee in cases of suspension or removal 28 426-135 Terms and conditions of appointment of acting trustee Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 9 [Page Break] Part 1 A mend ments commencing on 1 October 2009 1 426-140 Termination of appointment of acting trustee 2 426-145 Resignation of acting trustee 3 426-150 Property vesting orders 4 426-155 Powers of acting trustee 5 426-160 Commissioner may give directions to acting trustee 6 426-165 Property vested in acting trustee--former trustees' obligations relating to 7 books, identification of property and transfer of property 8 Private ancillary funds 9 426-105 Private ancillary funds 10 (1) A trust is a private ancillary fund if: 11 (a) each trustee of the trust is a *constitutional corporation; and 12 (b) each trustee has agreed, in the * approved form given to the 13 Commissioner, to comply with the rules in the * private 14 ancillary fund guidelines, as in force from time to time; and 15 (c) none of the trustees has revoked that agreement in 16 accordance with subsection (2). 17 (2) A trustee may revoke an agreement mentioned in paragraph (1)(b) 18 only by giving the revocation to the Commissioner in the 19 * approved form. 20 426-110 Private ancillary fund guidelines 21 The Minister must, by legislative instrument, formulate guidelines 22 (the private ancillary fund guidelines) setting out: 23 (a) rules that * private ancillary funds and their trustees must 24 comply with if the funds are to be, or are to remain, endorsed 25 as * deductible gift recipients; and 26 (b) the amount of the administrative penalty, or how to work out 27 the amount of the administrative penalty, under subsection 28 426-120(1). 29 426-115 Australian Business Register must show private ancillary 30 fund status 31 (1) If a * private ancillary fund has an * ABN, the * Australian Business 32 Registrar may enter in the * Australian Business Register in relation 33 to the fund a statement that it is a private ancillary fund. 10 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] Amend ments commencing on 1 October 2009 Part 1 1 Note 1: An entry (or lack of entry) of a statement required by this section does 2 not affect whether a trust is a private ancillary fund. 3 Note 2: The Australian Business Register will also show if a private ancillary 4 fund is endorsed as a deductible gift recipient: see section 30-229 of 5 the Income Tax Assessment Act 1997. 6 (2) The *Australian Business Registrar must take reasonable steps to 7 ensure that a statement appearing in the * Australian Business 8 Register under this section is true. For this purpose, the Registrar 9 may: 10 (a) change the statement; or 11 (b) remove the statement from the Register if the statement is not 12 true. 13 Administrative penalties 14 426-120 Administrative penalties for trustees of private ancillary 15 funds 16 Administrative penalty 17 (1) The persons mentioned in subsection (2) are jointly and severally 18 liable to an administrative penalty if: 19 (a) a trustee of a * private ancillary fund holds the fund out as 20 being endorsed, entitled to be endorsed, or entitled to remain 21 endorsed, as a * deductible gift recipient; and 22 (b) the fund is not so endorsed or entitled. 23 (2) The persons are: 24 (a) each person who is a trustee of the fund; and 25 (b) each director of each *constitutional corporation that is a 26 trustee of the fund, if: 27 (i) any of the penalty cannot reasonably be recovered from 28 the constitutional corporation; and 29 (ii) the constitutional corporation is not a registered trustee 30 company. 31 Note: A person mentioned in paragraph (2)(a) may, in certain circumstances, 32 not be a constitutional corporation: see item 28 of Schedule 2 to the 33 Tax Laws Amendment (2009 Measures No. 4) Act 2009 (former 34 prescribed private funds). 35 (3) The amount of the penalty is: Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 11 [Page Break] Part 1 A mend ments commencing on 1 October 2009 1 (a) the amount specified in the * private ancillary fund guidelines 2 under paragraph 426-110(b); or 3 (b) the amount worked out in accordance with the method 4 specified under that paragraph. 5 The private ancillary fund guidelines may specify different 6 penalties or methods for different circumstances. 7 (4) The penalty must not be reimbursed from the fund. 8 Note: Division 298 in this Schedule contains machinery provisions for 9 administrative penalties. 10 Defences for directors 11 (5) Paragraph (2)(b) does not apply to a director if: 12 (a) the director was not aware of the holding out mentioned in 13 paragraph (1)(a) and it would not have been reasonable to 14 expect the director to have been aware of that holding out; or 15 (b) the director took all reasonable steps to ensure that the 16 holding out mentioned in that paragraph did not occur; or 17 (c) there were no such steps that the director could have taken. 18 (6) In determining what is reasonable for the purposes of 19 paragraph (5)(a), (b) or (c), have regard to all relevant 20 circumstances. 21 (7) A person who wishes to rely on subsection (5) bears an evidential 22 burden in relation to the matters in that subsection. 23 Power of courts to grant relief 24 (8) Section 1318 of the Corporations Act 2001 (power of Court to 25 grant relief in case of breach of director's duty) does not apply to a 26 liability of a director under this section. 27 Suspension and removal of trustees 28 426-125 Suspension or re moval of trustees 29 Suspension 30 (1) The Commissioner may suspend all of the trustees of a * private 31 ancillary fund if the Commissioner is satisfied that the fund, or any 32 of the trustees of the fund, have breached: 12 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] Amend ments commencing on 1 October 2009 Part 1 1 (a) the * private ancillary fund guidelines; or 2 (b) any other * Australian law. 3 (2) The suspension of a trustee: 4 (a) starts when the Commissioner gives the trustee notice of the 5 suspension under subsection (3); and 6 (b) ends at the time specified in the notice. 7 (3) If the Commissioner decides to suspend a trustee under this 8 section, the Commissioner must give to the trustee a written notice: 9 (a) setting out the decision; and 10 (b) giving the reasons for the decision; and 11 (c) setting out the time the suspension ends. 12 Extension of suspensions 13 (4) The Commissioner may change the time the suspension of a trustee 14 ends. 15 (5) If the Commissioner decides to change the time the suspension of a 16 trustee ends under this section, the Commissioner must give to the 17 trustee a written notice: 18 (a) setting out the decision; and 19 (b) giving the reasons for the decision; and 20 (c) setting out the new time the suspension ends. 21 Removal 22 (6) The Commissioner may remove all of the trustees of a * private 23 ancillary fund if the Commissioner is satisfied that the fund, or any 24 of the trustees of the fund, have breached: 25 (a) the * private ancillary fund guidelines; or 26 (b) any other * Australian law. 27 (7) If the Commissioner decides to remove a trustee under this section, 28 the Commissioner must give to the trustee a written notice: 29 (a) setting out the decision; and 30 (b) giving the reasons for the decision. Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 13 [Page Break] Part 1 A mend ments commencing on 1 October 2009 1 Review of decisions under this section 2 (8) A trustee who is dissatisfied with any of the following decisions 3 under this section may object in the manner set out in Part IVC of 4 this Act: 5 (a) a decision to suspend the trustee; 6 (b) a decision to change the time a suspension of the trustee 7 ends; 8 (c) a decision to remove the trustee. 9 426-130 Commissioner to appoint acting trustee in cases of 10 suspension or re moval 11 Appointment of acting trustee 12 (1) If the Commissioner suspends all of the trustees of a * private 13 ancillary fund under section 426-125, the Commissioner must 14 appoint a single entity to act as the trustee (the acting trustee) of 15 the fund during the period of the suspension. 16 (2) If the Commissioner removes all of the trustees of a * private 17 ancillary fund under section 426-125, the Commissioner must 18 appoint a single entity to act as the trustee (the acting trustee) of 19 the fund until all of the vacancies in the position of trustee are 20 filled. 21 Acting trustee need not be constitutional corporation 22 (3) An acting trustee need not be a *constitutional corporation, and 23 may be the Commissioner. Paragraph 426-105(1)(a) does not apply 24 in relation to an acting trustee. 25 (4) An entity that is not a *constitutional corporation may not act as 26 trustee under this section for longer than 6 months. 27 Acting trustee must have agreed to comply with guidelines 28 (5) An entity may only be appointed as acting trustee if the entity has, 29 in accordance with paragraph 426-105(1)(b), agreed to comply 30 with the rules in the * private ancillary fund guidelines, as in force 31 from time to time. 14 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] Amend ments commencing on 1 October 2009 Part 1 1 426-135 Terms and conditions of appointment of acting trustee 2 (1) The Commissioner may determine the terms and conditions of the 3 appointment of the acting trustee, including fees. The 4 determination has effect despite anything in: 5 (a) any * Australian law other than this section; or 6 (b) the * private ancillary fund's governing rules. 7 (2) Without limiting subsection (1), the Commissioner may make a 8 determination under that subsection to the effect that the acting 9 trustee's fees are to be paid out of the corpus of the * private 10 ancillary fund. 11 426-140 Termination of appointme nt of acting trustee 12 The Commissioner may terminate the appointment of the acting 13 trustee at any time. 14 426-145 Resignation of acting trustee 15 (1) The acting trustee may resign by writing given to the 16 Commissioner. 17 (2) The resignation does not take effect until the end of the seventh 18 day after the day on which it was given to the Commissioner. 19 426-150 Property vesting orders 20 (1) If the Commissioner appoints an acting trustee, the Commissioner 21 must make a written order vesting the property of the * private 22 ancillary fund in the acting trustee. 23 (2) If the appointment ends, the Commissioner must make a written 24 order vesting the property of the fund in the new acting trustee, the 25 previously suspended trustee or trustees or the new actual trustee or 26 trustees (whichever is applicable). 27 (3) If the Commissioner makes an order under this section vesting 28 property of a * private ancillary fund in an entity or entities, then, 29 subject to subsection (4), the property immediately vests in the 30 entity or entities by force of this section. 31 (4) If: Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 15 [Page Break] Part 1 A mend ments commencing on 1 October 2009 1 (a) the property is of a kind whose transfer or transmission may 2 be registered under an * Australian law; and 3 (b) that law enables the registration of such an order, or enables 4 the entity or entities to be registered as the owner of that 5 property; 6 the property does not vest in the entity or entities until the 7 requirements of the law referred to in paragraph (a) have been 8 complied with. 9 426-155 Powe rs of acting trustee 10 Subject to section 426-150: 11 (a) the acting trustee has and may exercise all the rights, title and 12 powers, and must perform all the functions and duties, of the 13 original trustee or trustees; and 14 (b) the * private ancillary fund's governing rules and every 15 * Australian law apply in relation to the acting trustee as if the 16 acting trustee were the trustee of the fund. 17 426-160 Commissioner may give directions to acting trustee 18 (1) The Commissioner may give the acting trustee a written notice 19 directing the acting trustee to do, or not to do, one or more 20 specified acts or things in relation to the * private ancillary fund. 21 (2) The acting trustee commits an offence if: 22 (a) the acting trustee engages in conduct (within the meaning of 23 subsection 2(1) of this Act); and 24 (b) that engagement in conduct contravenes a notice given to the 25 acting trustee under subsection (1). 26 Penalty: 100 penalty units. 27 (3) This section does not affect the validity of a transaction entered 28 into in contravention of a notice given under subsection (1). 16 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] Amend ments commencing on 1 October 2009 Part 1 1 426-165 Property vested in acting trustee--forme r trustees' 2 obligations relating to books, identification of prope rty 3 and transfer of property 4 Books 5 (1) An entity commits an offence if: 6 (a) the Commissioner makes an order under subsection 7 426-150(1) or (2) vesting the property of a * private ancillary 8 fund in an acting trustee; and 9 (b) just before the Commissioner made the order, the property 10 was vested in: 11 (a) the entity (the former trustee); or 12 (b) 2 or more entities (the former trustees), including the 13 entity; and 14 (c) the former trustee or former trustees do not, within 14 days of 15 the Commissioner making the order, give the acting trustee 16 all books (within the meaning of the Corporations Act 2001) 17 relating to the fund's affairs that are in the former trustee's or 18 former trustees' possession, custody or control. 19 Penalty: 50 penalty units. 20 Identification of property and transfer of property 21 (2) Subsections (3) to (5) apply if: 22 (a) the property of a * private ancillary fund is vested in an entity 23 (the former trustee) or entities (the former trustees); and 24 (b) the Commissioner makes an order under subsection 25 426-150(1) or (2) vesting the property in an acting trustee. 26 (3) The acting trustee may, by notice in writing to the former trustee or 27 former trustees, require the former trustee or former trustees, so far 28 as the former trustee or former trustees can do so: 29 (a) to identify property of the fund; and 30 (b) to explain how the former trustee or former trustees have 31 kept account of that property. 32 (4) The acting trustee may, by notice in writing to the former trustee or 33 former trustees, require the former trustee or former trustees to take 34 specified action that is necessary to bring about a transfer of 35 specified property of the fund to the acting trustee. Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 17 [Page Break] Part 1 A mend ments commencing on 1 October 2009 1 (5) The former trustee, or each of the former trustees, commits an 2 offence if: 3 (a) the acting trustee gives the former trustee or former trustees a 4 notice under subsection (3) or (4); and 5 (b) the former trustee or former trustees do not, within 28 days of 6 the notice being given, comply with the requirement in the 7 notice. 8 Penalty: 50 penalty units. 9 Strict liability 10 (6) Subsections (1) and (5) are offences of strict liability. 11 Note: For strict liability, see section 6.1 of the Criminal Code. 12 18 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] Amend ments commencing on 1 January 2010 Part 2 1 Part 2--Amendments commencing on 1 January 2 2010 3 Income Tax Assessment Act 1997 4 23 Subsection 30-229(2A) 5 Omit "may", substitute "must". 6 Taxation Administration Act 1953 7 24 Subsection 426-115(1) in Schedule 1 8 Omit "may", substitute "must". 9 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 19 [Page Break] Part 3 Transitional provisions 1 Part 3--Transitional provisions 2 Division 1--Preliminary 3 25 Definitions 4 In this Part: 5 commencement time means the time at which this item commences. 6 constitutional corporation has the meaning given by the Income Tax 7 Assessment Act 1997. 8 deductible gift recipient has the meaning given by the Income Tax 9 Assessment Act 1997. 10 prescribed private fund has the meaning given by the Income Tax 11 Assessment Act 1997 (as in force just before the commencement time). 12 private ancillary fund has the meaning given by section 426-105 in 13 Schedule 1 to the Taxation Administration Act 1953. 14 private ancillary fund guidelines has the meaning given by 15 section 426-110 in Schedule 1 to the Taxation Administration Act 1953. 16 Division 2--Declared prescribed private funds 17 26 Transitional--prescribed private fund declarations 18 (1) The Minister may, by legislative instrument, declare a trust to be a 19 prescribed private fund. 20 (2) Despite subsection 12(2) of the Legislative Instruments Act 2003, 21 the declaration has effect during the period: 22 (a) starting at the time specified in the declaration, which must 23 be before the commencement time; and 24 (b) ending just before the commencement time. 25 Division 3--Transitional private ancillary funds 26 27 Application of Division 27 This Division applies to a trust if, just before the commencement time, 28 the trust was a prescribed private fund (whether or not because of a 29 declaration made under item 26). 20 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] Transitional provisions Part 3 1 28 Transitional--trustees need not be constitutional 2 corporations 3 Paragraph 426-105(1)(a) (trustees of private ancillary funds must be 4 constitutional corporations) and sections 426-125 to 426-165 5 (Suspension and removal of trustees) in Schedule 1 to the Taxation 6 Administration Act 1953 do not apply to the trust during the period: 7 (a) starting at the commencement time; and 8 (b) ending at the earlier of the following: 9 (i) the time (at or after the commencement time) the trust 10 first satisfies the requirements of that 11 paragraph (disregarding this item); 12 (ii) the first time any of the trustees of the trust revoke the 13 agreement mentioned in item 29 in accordance with 14 subsection 426-105(2) in that Schedule. 15 29 Transitional--agreement to comply with private ancillary 16 fund guidelines 17 (1) For the purposes of Subdivision 426-D in Schedule 1 to the Taxation 18 Administration Act 1953, each of the trustees of the trust is taken to 19 have agreed, at the commencement time and in accordance with 20 paragraph 426-105(1)(b) in that Schedule, to comply with the rules in 21 the private ancillary fund guidelines, as in force from time to time. 22 (2) To avoid doubt, subitem (1) does not prevent a trustee from revoking 23 that agreement at a later time as mentioned in paragraph 426-105(1)(c) 24 in that Schedule. 25 30 Transitional--endorsement as a deductible gift recipient 26 (1) The trust is taken to have been endorsed as a deductible gift recipient 27 under section 30-120 of the Income Tax Assessment Act 1997 at the 28 commencement time. 29 (2) To avoid doubt, subitem (1) does not prevent the Commissioner from 30 revoking that endorsement at a later time under section 426-55 in 31 Schedule 1 to the Taxation Administration Act 1953. 32 31 Transitional--transfer of property Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 21 [Page Break] Part 3 Transitional provisions 1 For the purposes of item 2 of the column headed "Recipient" of the 2 table in subsection 30-15(2) of the Income Tax Assessment Act 1997, 3 disregard a transfer of all of the property of the trust to another private 4 ancillary fund if: 5 (a) the other fund is a deductible gift recipient; and 6 (b) every trustee of the other fund is a constitutional corporation; 7 and 8 (c) the transfer happens during the period mentioned in item 28. 9 22 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] Main amendment Part 1 1 Schedule 3--Demutualisation of friendly 2 society health or life insurers 3 Part 1--Main amendment 4 Income Tax Assessment Act 1997 5 1 At the end of Part 3-32 6 Add: 7 Division 316--Demutualisation of friendly society health or 8 life insurers 9 Table of Subdivisions 10 Guide to Division 316 11 316-A Application 12 316-B Capital gains and losses connected with the demutualisation 13 316-C Cost base of shares and rights issued under the 14 demutualisation 15 316-D Lost policy holders trust 16 316-E Special CGT rules for legal personal representatives and 17 beneficiaries 18 316-F Non-CGT consequences of the demutualisation 19 Guide to Division 316 20 316-1 What this Division is about 21 Special tax consequences follow the demutualisation of a friendly 22 society that provides health insurance or life insurance, or has a 23 wholly-owned subsidiary that does. 24 Subdivision 316-A--Application 25 Table of sections 26 316-5 Application of this Division Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 23 [Page Break] Part 1 Main amendment 1 316-5 Application of this Division 2 This Division applies in relation to a demutualisation of a * friendly 3 society if: 4 (a) the society is, or has a *wholly-owned subsidiary (a 5 health/life insurance subsidiary) that is: 6 (i) a private health insurer as defined in the Private Health 7 Insurance Act 2007; or 8 (ii) a company registered under section 21 of the Life 9 Insurance Act 1995; and 10 (b) the society does not have capital divided into * shares held by 11 its * members; and 12 (c) after the demutualisation the society is to be carried on for 13 the object of securing a profit or pecuniary gain for its 14 * members. 15 Subdivision 316-B--Capital gains and losses connected with the 16 demutualisation 17 Guide to Subdivision 316-B 18 316-50 What this Subdivision is about 19 Disregard capital gains and losses made by any entity from a CGT 20 event happening under the demutualisation, unless the entity: 21 (a) is or has been a member of the friendly society or 22 insured through the society or any of its 23 wholly-owned subsidiaries; and 24 (b) receives money for the event. 25 Table of sections 26 Gains and losses of members, insured entities and successors 27 316-55 Disregarding capital gains and losses, except some involving receipt of 28 money 29 316-60 Taking account of some capital gains and losses involving receipt of money 30 316-65 Valuation factor for sections 316-60, 316-105 and 316-165 31 316-70 Value of the friendly society 24 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] Main amendment Part 1 1 Friendl y society's gains and losses 2 316-75 Disregarding friendly society's capital gains and losses 3 Other entities' gains and losses 4 316-80 Disregarding other entities' capital gains and losses 5 Gains and losses of members, insured entities and successors 6 316-55 Disregarding capital gains and losses, except some involving 7 receipt of money 8 (1) Disregard an entity's * capital gain or * capital loss from a * CGT 9 event that happens under the demutualisation to a * CGT asset if: 10 (a) the entity: 11 (i) is or has been a * member of the * friendly society; or 12 (ii) is or has been insured through the friendly society or a 13 health/life insurance subsidiary of the friendly society; 14 and 15 (b) the CGT asset is one of these (an interest affected by 16 demutualisation): 17 (i) an interest in the friendly society as the owner or holder 18 of a policy of insurance with the friendly society or 19 health/life insurance subsidiary; 20 (ii) a * membership interest in the friendly society; 21 (iii) a right or interest of another kind in the friendly society; 22 (iv) a right or interest of another kind that arises under the 23 demutualisation, except an interest in a lost policy 24 holders trust (see section 316-155). 25 Note: Subdivision 316-D deals with the effects of CGT events happening to 26 interests in lost policy holders trusts. 27 (2) Disregard a * capital gain or * capital loss of an entity (the 28 successor) from a * CGT event that happens under the 29 demutualisation to a * CGT asset if: 30 (a) the successor is the * legal personal representative, or 31 beneficiary in the estate, of a deceased individual who was: 32 (i) a * member of the * friendly society; or 33 (ii) insured through the friendly society or a health/life 34 insurance subsidiary of the friendly society; and 35 (b) the CGT asset: Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 25 [Page Break] Part 1 Main amendment 1 (i) forms part of the deceased individual's estate; and 2 (ii) devolves or * passes to the successor; and 3 (iii) is an interest affected by demutualisation (see 4 paragraph (1)(b)). 5 316-60 Taking account of some capital gains and losses involving 6 receipt of money 7 (1) This section applies if: 8 (a) a *CGT event happens under the demutualisation to an 9 entity's interest affected by demutualisation (see 10 section 316-55); and 11 (b) the event involves: 12 (i) the variation or abrogation of rights attaching to or 13 consisting of the interest; or 14 (ii) the conversion, cancellation, extinguishment or 15 redemption of the interest; and 16 (c) either: 17 (i) the entity is one described in paragraph 316-55(1)(a); or 18 (ii) the entity is one described in paragraph 316-55(2)(a) 19 and the interest is a * CGT asset described in paragraph 20 316-55(2)(b); and 21 (d) the *capital proceeds from the event include or consist of 22 money received by the entity. 23 (2) Work out whether the entity makes a *capital gain or * capital loss 24 from the * CGT event, and the amount of the gain or loss, assuming 25 that: 26 (a) the *capital proceeds from the CGT event were the amount 27 they would be if they did not include any * market value of 28 property other than money; and 29 (b) the *cost base and * reduced cost base for the interest were the 30 amount worked out using the formula: *Capital proceeds from Valuation factor worked out 31 the *CGT event under section 316-65 32 Example: Assume the entity receives $50 in money and 10 shares with a market 33 value of $4 each in respect of CGT event C2 happening, and that the 34 valuation factor worked out under section 316-65 is 0.9. The entity 35 makes a capital gain from the event of $5, worked out as follows: 26 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] Main amendment Part 1 1 $50 $50 0.9 2 This ignores the market value of the shares because they are property 3 other than money. 4 Note: Division 114 (Indexation of cost base) is not relevant, because this 5 section provides exhaustively for working out the amount of the cost 6 base. 7 (3) The *capital gain or * capital loss is not to be disregarded, despite: 8 (a) section 316-55; and 9 (b) any provision of this Act for disregarding the * capital gain or 10 * capital loss because the interest affected by demutualisation 11 was *acquired before 20 September 1985. 12 Note: The capital gain is not a discount capital gain: see section 115-55. 13 316-65 Valuation factor for sections 316-60, 316-105 and 316-165 14 (1) For the purposes of sections 316-60, 316-105 and 316-165, the 15 valuation factor is the amount worked out using the formula: Market value of the friendly society's health insurance Embedded value of the friendly business (if any) society's other business (if any) 16 Total *capital proceeds for all entities from *CGT events happening under the demutualisation to interests affected by demutualisation (except those described in subparagraph 316-55(1)(b)(iv)) 17 where: 18 embedded value of the friendly society's other business (if any) 19 means the amount that would be the value of the * friendly society 20 worked out under section 316-70 assuming that neither the friendly 21 society, nor any health/life insurance subsidiary of it, * carried on 22 any health insurance business within the meaning of the Private 23 Health Insurance Act 2007. 24 market value of the friendly society's health insurance business 25 (if any) means the total * market value of every health insurance 26 business, within the meaning of the Private Health Insurance Act 27 2007, * carried on by either or both of the * friendly society and its 28 health/life insurance subsidiaries (if any), taking account of any 29 consideration paid to the society or subsidiary for disposal or 30 control of that business. Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 27 [Page Break] Part 1 Main amendment 1 (2) Disregard paragraph 316-60(2)(a) for the purposes of the formula 2 in subsection (1) of this section. 3 316-70 Value of the friendly society 4 (1) The value of the * friendly society is the sum, worked out in 5 accordance with this section, of the friendly society's existing 6 business value and its adjusted net worth on the day (the applicable 7 accounting day) identified under subsection (3). 8 Eligible actuary and Australian actuarial practice 9 (2) The sum is to be worked out, according to Australian actuarial 10 practice, by an *actuary who is not an employee of: 11 (a) the * friendly society; or 12 (b) a health/life insurance subsidiary of the friendly society; or 13 (c) an entity of which the friendly society is to become a 14 * wholly-owned subsidiary under the demutualisation. 15 Applicable accounting day 16 (3) The applicable accounting day is: 17 (a) if an accounting period of the * friendly society ends on the 18 day (the demutualisation resolution day) identified under 19 subsection (4)--that day; or 20 (b) in any other case--the last day of the most recent accounting 21 period of the friendly society ending before the 22 demutualisation resolution day. 23 Demutualisation resolution day 24 (4) The demutualisation resolution day is: 25 (a) the day on which the resolution to proceed with the 26 demutualisation is passed; or 27 (b) if, under the demutualisation, the whole of the * life insurance 28 business of the * friendly society or of a health/life insurance 29 subsidiary of the friendly society is transferred to another 30 company under a scheme confirmed by the Federal Court of 31 Australia--the day (or the last day) on which the transfer 32 takes place. 28 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] Main amendment Part 1 1 Adjustment for changes after applicable accounting day 2 (5) In a case covered by paragraph (3)(b), if any significant change in 3 the amount of the existing business value or adjusted net worth 4 occurs between the applicable accounting day and the 5 demutualisation resolution day, the amount is to be adjusted to take 6 account of the change. 7 Continued business assumption 8 (6) In working out the existing business value or the adjusted net 9 worth, assume: 10 (a) that after the applicable accounting day the * friendly society, 11 and any health/life insurance subsidiary of the friendly 12 society, will continue to conduct * business and any other 13 activity in the same way as before that day, and will not 14 conduct any different business or other activity; and 15 (b) that the demutualisation will not occur; and 16 (c) that any health/life insurance subsidiary of the friendly 17 society will continue to be a * wholly-owned subsidiary of the 18 friendly society. 19 Expenditure assumption 20 (7) In working out the existing business value, assume that expenditure 21 that the *friendly society and any of its health/life insurance 22 subsidiaries will incur, in conducting * business, on recurring items 23 after the demutualisation resolution day will be of the same kinds 24 and amounts (increased to take account of any inflation) as it 25 incurred in the accounting period, or part of an accounting period, 26 ending on the demutualisation resolution day. 27 Friendly society's gains and losses 28 316-75 Disregarding friendly society's capital gains and losses 29 Disregard the * friendly society's * capital gain or * capital loss from 30 a *CGT event that happens under the demutualisation. Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 29 [Page Break] Part 1 Main amendment 1 Other entities' gains and losses 2 316-80 Disregarding othe r entities' capital gains and losses 3 Disregard an entity's * capital gain or * capital loss from a * CGT 4 event that happens under the demutualisation if: 5 (a) the entity is established solely for the purpose of participating 6 in the demutualisation and is not a lost policy holders trust 7 (see section 316-155); and 8 (b) the CGT event: 9 (i) happens before or at the same time as the allocation or 10 distribution of the accumulated surplus of the * friendly 11 society; and 12 (ii) is connected to that allocation or distribution. 13 Note: The allocation or distribution of the accumulated surplus could happen 14 through an arrangement involving more than one transaction. 15 Subdivision 316-C--Cost base of shares and rights issued under 16 the demutualisation 17 Guide to Subdivision 316-C 18 316-100 What this Subdivision is about 19 The value of the friendly society and its business affects cost bases 20 of shares and certain rights issued under the demutualisation to: 21 (a) entities that are or were members of the friendly 22 society; or 23 (b) entities insured through the society or its 24 subsidiaries; or 25 (c) successors of such entities; or 26 (d) the trustee of the lost policy holders trust. 27 Table of sections 28 316-105 Cost base and time of acquisition of shares and certain rights issued under 29 demutualisation 30 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] Main amendment Part 1 1 316-110 Demutualisation assets 2 316-115 Entities to which section 316-105 applies 3 316-105 Cost base and time of acquisition of shares and certain 4 rights issued under demutualisation 5 First element of cost base 6 (1) The first element of the *cost base and * reduced cost base of a 7 * CGT asset is the amount worked out using the formula in 8 subsection (2) if: 9 (a) the asset is a CGT asset (a demutualisation asset) covered by 10 section 316-110; and 11 (b) the asset is issued to an entity covered by section 316-115. 12 (2) The formula is: Value of the *CGT asset Valuation factor worked out 13 when it was issued under section 316-65 14 Time of acquisition 15 (3) The entity is taken to have * acquired the * CGT asset at the time it 16 is issued. 17 316-110 Demutualisation assets 18 (1) This section covers a * CGT asset that: 19 (a) is: 20 (i) a *share in the * friendly society; or 21 (ii) a right to * acquire a share in the friendly society; or 22 (iii) a share in an entity that owns all of the shares in the 23 friendly society; or 24 (iv) a right to acquire a share in an entity mentioned in 25 subparagraph (iii); and 26 (b) is issued under the demutualisation; and 27 (c) is issued in connection with: 28 (i) the variation or abrogation of rights attaching to or 29 consisting of an interest affected by demutualisation 30 (see paragraph 316-55(1)(b)); or Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 31 [Page Break] Part 1 Main amendment 1 (ii) the conversion, cancellation, extinguishment or 2 redemption of an interest affected by demutualisation. 3 Exclusion for rights with an exercise price 4 (2) Despite subsection (1), this section does not cover a right to 5 * acquire a *share in an entity if the holder of the right must pay an 6 amount to exercise the right. 7 Exclusion where assets not issued simultaneously 8 (3) Despite subsection (1), a * CGT asset is not covered by this section 9 unless all of the CGT assets covered by subsection (1) for the 10 demutualisation are issued: 11 (a) at the same time; and 12 (b) to entities that are covered by section 316-115. 13 316-115 Entities to which section 316-105 applies 14 (1) This section covers an entity that: 15 (a) either: 16 (i) is or has been a * member of the * friendly society; or 17 (ii) is or has been insured through the friendly society or a 18 health/life insurance subsidiary of the friendly society; 19 and 20 (b) is entitled under the demutualisation to an allocation of 21 demutualisation assets. 22 (2) This section also covers an entity that has become entitled to an 23 allocation of demutualisation assets because of the death of an 24 individual who was an entity described in subsection (1). 25 (3) This section also covers the trustee of a lost policy holders trust 26 (see section 316-155). 32 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] Main amendment Part 1 1 Subdivision 316-D--Lost policy holders trust 2 Guide to Subdivision 316-D 3 316-150 What this Subdivision is about 4 If the demutualisation creates a trust just to hold shares, rights to 5 acquire shares or money for entities that were members of the 6 friendly society or insured through the society or its subsidiary, or 7 are successors of such entities, then: 8 (a) capital gains or losses from CGT events happening 9 to beneficiaries' interests in the trust are 10 disregarded, except where the capital proceeds 11 include money; and 12 (b) when a CGT event happens involving the transfer 13 of the shares or rights to a beneficiary, or a 14 beneficiary's absolute entitlement to them, the 15 trustee's capital gain or loss is disregarded and the 16 beneficiary has the same cost base and time of 17 acquisition as the trustee; and 18 (c) the trustee is assessed on any capital gains from 19 other CGT events happening to the shares or 20 rights. 21 Table of sections 22 Application 23 316-155 Lost policy holders trust 24 Effects of CGT events happeni ng to interests and assets in trust 25 316-160 Disregarding beneficiaries' capital gains and losses, except some involving 26 receipt of money 27 316-165 Taking account of some capital gains and losses involving receipt of money 28 by beneficiaries 29 316-170 Roll-over where shares or rights to acquire shares transferred to beneficiary 30 of lost policy holders trust 31 316-175 Trustee assessed if shares or rights dealt with not for benefit of beneficiary 32 of lost policy holders trust Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 33 [Page Break] Part 1 Main amendment 1 316-180 Subdivision 126-E does not apply 2 Application 3 316-155 Lost policy holders trust 4 (1) This Subdivision applies if the conditions in subsections (2) and (5) 5 are met. 6 First condition 7 (2) The first condition is that the scheme approved by a court for the 8 demutualisation provides for a trust (the lost policy holders trust) 9 to exist solely for one or both of the purposes that are described in 10 subsection (3) in relation to persons (beneficiaries of the lost 11 policy holders trust) covered by subsection (4). 12 (3) The purposes are as follows: 13 (a) holding demutualisation assets (see section 316-110) that are 14 * shares or rights to * acquire shares, or proceeds from disposal 15 of those assets, on behalf of one or more beneficiaries of the 16 lost policy holders trust and transferring those assets or 17 proceeds to those beneficiaries; 18 (b) holding on behalf of one or more beneficiaries of the lost 19 policy holders trust, and paying to them, money payable to 20 them for: 21 (i) the variation or abrogation of rights attaching to or 22 consisting of the beneficiaries' interests affected by 23 demutualisation (see paragraph 316-55(1)(b)); or 24 (ii) the conversion, cancellation, extinguishment or 25 redemption of those interests. 26 (4) This subsection covers: 27 (a) a person who is or has been a * member of the friendly society 28 or is or has been insured through the * friendly society or a 29 health/life insurance subsidiary of the friendly society; and 30 (b) a * legal personal representative, or beneficiary in the estate, 31 of such a person who has died. 34 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] Main amendment Part 1 1 Second condition 2 (5) The second condition is that, under the demutualisation, the trustee 3 of the lost policy holders trust is: 4 (a) issued with demutualisation assets that are * shares, or rights 5 to * acquire shares; or 6 (b) paid money described in paragraph (3)(b) to hold and pay to 7 beneficiaries of the lost policy holders trust. 8 Effects of CG T events happening to interests and assets in trust 9 316-160 Disregarding beneficiaries' capital gains and losses, except 10 some involving receipt of money 11 Disregard a * capital gain or * capital loss of a beneficiary of the lost 12 policy holders trust from a *CGT event that happens to the 13 beneficiary's interest in the trust. 14 316-165 Taking account of some capital gains and losses involving 15 receipt of money by beneficiaries 16 (1) This section applies if: 17 (a) a *CGT event happens to an interest of a beneficiary of the 18 lost policy holders trust in that trust; and 19 (b) the *capital proceeds from the event include or consist of 20 money received by the beneficiary. 21 (2) Work out whether the beneficiary makes a * capital gain or * capital 22 loss from the * CGT event, and the amount of the gain or loss, 23 assuming that: 24 (a) the *capital proceeds from the CGT event were the amount 25 they would be if they did not include any * market value of 26 property other than money; and 27 (b) the *cost base and * reduced cost base for the interest were the 28 amount worked out using the formula: *Capital proceeds from Valuation factor worked out 29 the *CGT event under section 316-65 30 Example: Assume that the beneficiary of the lost policy holders trust is paid $50 31 in money by the trustee to satisfy the beneficiary's interest in the trust 32 so that a CGT event happens, and that the valuation factor worked out Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 35 [Page Break] Part 1 Main amendment 1 under section 316-65 is 0.9. The beneficiary makes a capital gain from 2 the event of $5, worked out as follows: 3 $50 $50 0.9 4 Note: Division 114 (Indexation of cost base) is not relevant, because this 5 section provides exhaustively for working out the amount of the cost 6 base. 7 (3) The *capital gain or * capital loss is not to be disregarded, despite 8 sections 316-55 and 316-160. 9 Note: The capital gain is not a discount capital gain: see section 115-55. 10 316-170 Roll-over whe re shares or rights to acquire shares 11 transferred to beneficiary of lost policy holders trust 12 (1) This section applies in relation to a * CGT event if: 13 (a) the CGT event happens in relation to an asset that: 14 (i) is a * share or a right to * acquire one or more shares; and 15 (ii) is held by the trustee of the lost policy holders trust on 16 behalf of a beneficiary of the lost policy holders trust; 17 and 18 (b) the CGT event happens because the beneficiary of the lost 19 policy holders trust either: 20 (i) is transferred the asset by the trustee; or 21 (ii) becomes absolutely entitled to the asset. 22 Consequence for trustee 23 (2) Disregard a * capital gain or * capital loss the trustee makes from the 24 * CGT event. 25 Consequences for beneficiary 26 (3) The *cost base and * reduced cost base of the asset in the hands of 27 the trustee of the lost policy holders trust just before the *CGT 28 event becomes the first element of the cost base and reduced cost 29 base of the asset in the hands of the beneficiary of the lost policy 30 holders trust. 31 Note: Section 316-105 affects the cost base of the asset in the hands of the 32 trustee of the lost policy holders trust if the asset is covered by 33 section 316-110. 36 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] Main amendment Part 1 1 (4) The beneficiary of the lost policy holders trust is taken to have 2 * acquired the asset when the trustee acquired it. 3 316-175 Trustee assessed if shares or rights dealt with not for benefit 4 of beneficiary of lost policy holde rs trust 5 (1) This section applies in relation to a * capital gain from a * CGT 6 event if: 7 (a) the CGT event happens in relation to a demutualisation asset 8 that: 9 (i) is a * share or a right to * acquire a share; and 10 (ii) is held by the trustee of a lost policy holders trust; and 11 (b) section 316-170 does not apply to the CGT event. 12 (2) For the purposes of sections 97, 98A and 100 of the Income Tax 13 Assessment Act 1936, the share of the net income of the trust that is 14 attributable to the * capital gain is taken not to be included in the 15 assessable income of a beneficiary of the trust. 16 (3) The trustee is not assessed, and is not liable to pay tax, in respect of 17 the share under section 98 of the Income Tax Assessment Act 1936. 18 Note: Because of these consequences in relation to sections 97 and 98 of the 19 Income Tax Assessment Act 1936, the trustee will be assessed on the 20 beneficiary's share under section 99A of that Act. 21 316-180 Subdivision 126-E does not apply 22 Subdivision 126-E does not apply in relation to the 23 demutualisation. 24 Note: Subdivision 126-E is about an entitlement to shares after 25 demutualisation and scrip for scrip roll-over. 26 Subdivision 316-E--Special CGT rules for legal personal 27 representatives and beneficiaries 28 Table of sections 29 316-200 Demutualisation assets not owned by deceased but passing to beneficiary in 30 deceased estate 31 316-205 Interest in lost policy holders trust not owned by deceased but passing to 32 beneficiary in deceased estate Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 37 [Page Break] Part 1 Main amendment 1 316-200 Demutualisation assets not owned by deceased but passing 2 to beneficiary in deceased estate 3 (1) This section sets out what happens if a * CGT asset: 4 (a) is a demutualisation asset (see section 316-110); and 5 (b) forms part of the estate of an individual who is an entity 6 described in subsection 316-115(1) and has died; and 7 (c) was not owned by the individual just before dying; and 8 (d) * passes to a beneficiary in the individual's estate because the 9 asset is transferred to the beneficiary by the individual's 10 * legal personal representative. 11 Note: Division 128 deals with the effect of death in relation to CGT assets a 12 person owns just before dying. 13 Consequence for legal personal representative 14 (2) Disregard a * capital gain or * capital loss the * legal personal 15 representative makes because the asset * passes to the beneficiary. 16 Consequence for beneficiary 17 (3) The *cost base and * reduced cost base of the asset in the hands of 18 the * legal personal representative just before the asset * passes to 19 the beneficiary becomes the first element of the cost base and 20 reduced cost base of the asset in the hands of the beneficiary. 21 (4) The beneficiary is taken to have *acquired the asset when the * legal 22 personal representative acquired it. 23 316-205 Interest in lost policy holders trust not owned by deceased 24 but passing to beneficiary in deceased estate 25 (1) This section sets out what happens if a * CGT asset: 26 (a) is an interest in a lost policy holders trust (see 27 section 316-155); and 28 (b) forms part of the estate of an individual who is an entity 29 described in subsection 316-115(1) and has died; and 30 (c) was not owned by the individual just before dying; and 31 (d) * passes to a beneficiary in the individual's estate because the 32 asset is transferred to the beneficiary by the individual's 33 * legal personal representative. 38 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] Main amendment Part 1 1 Note: Division 128 deals with the effect of death in relation to CGT assets a 2 person owns just before dying. 3 Consequence for legal personal representative 4 (2) Disregard a * capital gain or * capital loss the * legal personal 5 representative makes because the asset * passes to the beneficiary. 6 Subdivision 316-F--Non-CG T consequences of the 7 demutualisation 8 Guide to Subdivision 316-F 9 316-250 What this Subdivision is about 10 In many cases, income from demutualisation is assessed through 11 the CGT provisions rather than as ordinary income or other 12 statutory income. 13 Franking debits arise for the friendly society and its subsidiaries to 14 ensure they do not enjoy a franking surplus. Franking debits and 15 credits arise to negate credits and debits from things attributable to 16 the time before demutualisation. 17 Table of sections 18 316-255 General taxation consequences of issue of demutualisation assets etc. 19 316-260 Franking debits to stop the friendly society and its subsidiaries having 20 franking surpluses 21 316-265 Franking debits to negate franking credits from some distributions to 22 friendly society and subsidiaries 23 316-270 Franking debits to negate franking credits from post-demutualisation 24 payments of pre-demutualisation tax 25 316-275 Franking credits to negate franking debits from refunds of tax paid before 26 demutualisation 27 316-255 General taxation consequences of issue of demutualisation 28 assets etc. 29 (1) An amount of * ordinary income or * statutory income (other than a 30 * net capital gain) of an entity covered by subsection (2) is not 31 assessable income and is not * exempt income if: Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 39 [Page Break] Part 1 Main amendment 1 (a) the amount would otherwise be included in the ordinary 2 income or statutory income of the entity only because a 3 demutualisation asset (see section 316-110) was issued to the 4 entity; or 5 (b) the amount is a payment made to the entity, under the 6 demutualisation, in connection with: 7 (i) the variation or abrogation of rights attaching to or 8 consisting of an interest affected by demutualisation 9 (see paragraph 316-55(1)(b)); or 10 (ii) the conversion, cancellation, extinguishment or 11 redemption of an interest affected by demutualisation; 12 or 13 (c) the amount would otherwise be included in the ordinary 14 income or statutory income of the entity only because a 15 * share or a right to * acquire one or more shares was 16 transferred to the entity by the trustee of a lost policy holders 17 trust (see section 316-155); or 18 (d) the amount is a payment made to the entity from a lost policy 19 holders trust in connection with: 20 (i) the variation or abrogation of rights attaching to or 21 consisting of an interest affected by demutualisation; or 22 (ii) the conversion, cancellation, extinguishment or 23 redemption of an interest affected by demutualisation. 24 (2) This subsection covers an entity that: 25 (a) is or has been a * member of the * friendly society; or 26 (b) is or has been insured through the friendly society or a 27 health/life insurance subsidiary of the friendly society; or 28 (c) is issued with the demutualisation asset, or receives the 29 payment, because of the death of a person covered by 30 paragraph (a) or (b); or 31 (d) is a beneficiary of a lost policy holders trust (see 32 section 316-155). 33 316-260 Franking debits to stop the friendly society and its 34 subsidiaries having franking surpluses 35 (1) A *franking debit arises in the * franking account of the *friendly 36 society or a *wholly-owned subsidiary of the society if the account 40 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] Main amendment Part 1 1 is in * surplus immediately before the demutualisation resolution 2 day identified under subsection 316-70(4). 3 (2) The amount of the * franking debit equals the * surplus. 4 (3) The * franking debit arises at the start of that day. 5 316-265 Franking debits to negate franking credits from some 6 distributions to friendly society and subsidiaries 7 (1) This section applies if a * franking credit arises in the * franking 8 account of the * friendly society or a *wholly-owned subsidiary of 9 the society because a * distribution declared before the 10 demutualisation resolution day identified under subsection 11 316-70(4) is made to the society or subsidiary on or after that day. 12 (2) A *franking debit arises in that account. 13 (3) The amount of the * franking debit equals the amount of the 14 * franking credit. 15 (4) The * franking debit arises at the same time as the *franking credit 16 arises. 17 316-270 Franking debits to negate franking credits from 18 post-demutualisation payments of pre-demutualisation 19 tax 20 (1) This section applies if a * franking credit arises in the * franking 21 account of the * friendly society or a *wholly-owned subsidiary of 22 the society because, on or after the demutualisation resolution day 23 identified under subsection 316-70(4), the society or subsidiary 24 * pays a PAYG instalment, or * pays income tax, that is wholly or 25 partly attributable to a period before that day. 26 (2) A *franking debit arises in that account. 27 (3) The amount of the * franking debit is so much of the * franking 28 credit as is attributable to the period before that day. 29 (4) The * franking debit arises at the same time as the *franking credit 30 arises. Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 41 [Page Break] Part 1 Main amendment 1 316-275 Franking credits to negate franking debits from refunds of 2 tax paid before demutualisation 3 (1) This section applies if a * franking debit arises in the * franking 4 account of the * friendly society or a *wholly-owned subsidiary of 5 the society because, on or after the demutualisation resolution day 6 identified under subsection 316-70(4), the society or subsidiary 7 * receives a refund of income tax that is wholly or partly 8 attributable to a period before that day. 9 (2) A *franking credit arises in that account. 10 (3) The amount of the * franking credit is so much of the * franking 11 debit as is attributable to the period before that day. 12 (4) The * franking credit arises at the same time as the *franking debit 13 arises. 14 42 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] Related amend ments Part 2 1 Part 2--Related amendments 2 Income Tax Assessment Act 1936 3 2 At the end of Subdivision C of Division 9AA of Part III 4 Add: 5 121AU This Subdivision does not apply to de mutualisation of 6 friendly society health or life insurers 7 This Subdivision does not apply in relation to the demutualisation 8 of a company in relation to whose demutualisation Division 316 9 (Demutualisation of friendly society health or life insurers) of the 10 Income Tax Assessment Act 1997 applies. 11 Note: Section 316-5 of the Income Tax Assessment Act 1997 explains which 12 demutualisations of entities Division 316 of that Act applies to. 13 3 After paragraph 326-10(1)(ba) in Schedule 2H 14 Insert: 15 (bb) is not an entity in relation to whose demutualisation 16 Division 316 (Demutualisation of friendly society health or 17 life insurers) of that Act applies; and 18 4 Application 19 The amendments of the Income Tax Assessment Act 1936 made by this 20 Part apply in relation to demutualisations occurring on or after 1 July 21 2008. 22 Income Tax Assessment Act 1997 23 5 Section 11-55 (before table item headed "demutualisation 24 of private health insurers") 25 Insert: demutualisation of friendl y society health or life insurers amounts related to issue, or transfer fro m lost policy holders trust, of demutualisation assets ............................ 316-255 payments received directly, or fro m lost policy holders trust, in exchange for cancellat ion or variation of 316-255 interests under the demutualisation ................................... Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 43 [Page Break] Part 2 Related amend ments 1 6 Section 102-30 (after table item 10) 2 Insert: 10A All entit ies Div ision 316 contains special ru les Div ision 316 affecting capital gains and capital losses connected with demutualisation of friendly society health or life insurers. 3 7 Section 109-60 (table item 4, column headed "In these 4 circumstances:") 5 After "company", insert "except a friendly society health or life 6 insurer". 7 8 Section 109-60 (table item 10, column headed "In these 8 circumstances:") 9 Omit "or health insurer", substitute ", health insurer and friendly society 10 health or life insurer". 11 9 Section 109-60 (table items 13 and 14, column headed "In 12 these circumstances:") 13 After "insurer", insert "except a friendly society health or life insurer". 14 10 Section 109-60 (after table item 14) 15 Insert: 14A You are issued with a share, the time the share or section 316-105 or a right to acquire shares, right is issued under a demutualisation of a friendly society health or life insurer 14B You are transferred a share, the time the share or section 316-170 or right to acquire shares, by right is issued to the a lost policy holders trust trustee under a demutualisation of a friendly society health or life insurer 16 11 Section 112-97 (table item 5, column headed "In this 17 situation") 18 After "company", insert "except a friendly society health or life 19 insurer". 44 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] Related amend ments Part 2 1 12 Section 112-97 (table item 5A, column headed "In this 2 situation") 3 Omit "or health insurer", substitute ", health insurer and friendly society 4 health or life insurer". 5 13 Section 112-97 (table items 29 and 30, column headed "In 6 this situation") 7 After "insurer", insert "except a friendly society health or life insurer". 8 14 Section 112-97 (after table item 30) 9 Insert: 30A A CGT event occurs under a All elements of cost base section 316-60 demutualisation of a friendly society health or life insurer and the capital proceeds from the event include money 30B You are issued with an asset First element of cost base section 316-105 under a demutualisation of a and reduced cost base friendly society health or life insurer 30C A CGT event happens to an All elements of cost base section 316-165 interest in a lost policy holders trust and the capital proceeds fro m the event include money 30D You are transferred a share, or The total cost base and section 316-170 right to acquire shares, by a reduced cost base lost policy holders trust under a demutualisation of a friendly society health or life insurer 10 15 At the end of Subdivision 115-A 11 Add: 12 115-55 Capital gains involving money received from 13 demutualisation of friendly society health or life insurer 14 Your * capital gain from a * CGT event is not a discount capital 15 gain if it is affected by section 316-60 or 316-165. 16 Note: Those sections affect capital gains involving the receipt of money as a 17 result of the demutualisation of a friendly society health or life insurer. Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 45 [Page Break] Part 2 Related amend ments 1 16 Section 118-1 (note 3) 2 Omit "Division 315 (about demutualisation of private health insurers)", 3 substitute "Divisions 315 and 316 (about demutualisation of certain 4 insurers)". 5 17 Subsection 118-20(4) 6 Omit "section 59-40", substitute "sections 59-40 and 316-255". 7 18 Paragraphs 149-165(1)(b) and 149-170(1)(b) 8 Repeal the paragraphs, substitute: 9 (b) has since stopped being a company of either of those kinds, 10 but either: 11 (i) has continued in existence as a company covered by 12 paragraph 149-50(1)(a) or (e) or a * publicly traded unit 13 trust; or 14 (ii) has undergone a demutualisation in relation to which 15 Division 316 (Demutualisation of friendly society health 16 or life insurers) applied and has continued in existence 17 as a company; and 18 19 After section 197-37 19 Insert: 20 197-38 Exclusion for transfers connected with de mutualisations of 21 friendly society health or life insurers 22 (1) Subject to subsection (2), this Division does not apply to the 23 transferred amount if: 24 (a) the amount is transferred in connection with a 25 demutualisation of a company; and 26 (b) Division 316 (about demutualisations of friendly society 27 health and life insurers) applies in relation to the 28 demutualisation; and 29 (c) the company (the issuing company) to whose * share capital 30 account the amount is transferred is either: 31 (i) the * friendly society described in that Division; or 32 (ii) the company that owns all the shares in the friendly 33 society. 46 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] Related amend ments Part 2 1 (2) Subsection (1) does not stop this Division from applying to so 2 much, if any, of the transferred amount as exceeds the sum of the 3 * cost bases of * shares in the issuing company that: 4 (a) are demutualisation assets (see section 316-110); and 5 (b) are issued to an entity covered by section 316-115. 6 Note: Section 316-115 identifies entities connected directly or indirectly 7 with the friendly society and affected by the special cost base rules in 8 section 316-105. 9 (3) For the purposes of subsection (2), work out the * cost base of a 10 * share on the day on which it is issued, taking account of 11 section 316-105. 12 20 Subsection 205-15(1) (at the end of the table) 13 Add: 6 a * franking cred it arises the amount of the debit at the time provided by under section 316-275 specified in subsection subsection 316-275(4) for the * friendly society 316-275(3) or one of its * wholly-owned subsidiaries because the society or subsidiary * receives a refund of inco me tax 14 21 Subsection 205-30(1) (at the end of the table) 15 Add: 10 a * franking debit arises the amount of the debit at the time provided by under section 316-260 specified in subsection subsection 316-260(3) for the * friendly society 316-260(2) or one of its * wholly-owned subsidiaries because the * franking account of the society or subsidiary is in * surplus 11 a * franking debit arises the amount of the debit at the time provided by under section 316-265 specified in subsection subsection 316-265(4) for the * friendly society 316-265(3) or one of its Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 47 [Page Break] Part 2 Related amend ments * wholly-owned subsidiaries because a * franking cred it arises for the society or subsidiary 12 a * franking debit arises the amount of the debit at the time provided by under section 316-270 specified in subsection subsection 316-270(4) for the * friendly society 316-270(3) or one of its * wholly-owned subsidiaries because a * franking cred it arises for the society or subsidiary 1 22 After subparagraph 315-15(a)(ii) 2 Insert: 3 (iia) is not an entity to whose demutualisation Division 316 4 applies; and 5 23 Application 6 The amendments of the Income Tax Assessment Act 1997 made by this 7 Part apply in relation to demutualisations occurring on or after 1 July 8 2008. 9 Income Tax (Transitional Provisions) Act 1997 10 24 After Part 3-30 11 Insert: 12 Part 3-32--Co-operatives and mutual entities 13 Division 316--Demutualisation of friendly society health or 14 life insurers 15 Table of Subdivisions 16 316-A Application 48 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] Related amend ments Part 2 1 Subdivision 316-A--Application 2 Table of sections 3 316-1 Application of Division 316 of the Income Tax Assessment Act 1997 4 316-1 Application of Division 316 of the Income Tax Assessment Act 5 1997 6 Division 316 of the Income Tax Assessment Act 1997 applies in 7 relation to demutualisations occurring on or after 1 July 2008. 8 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 49 [Page Break] 1 Schedule 4--Consolidation: application of 2 losses with nil available fraction 3 4 Income Tax Assessment Act 1936 5 1 At the end of subsection 245-105(1) in Schedule 2C 6 Add: 7 Note: The total net forgiven amount may be reduced under section 707-415 8 of the Income Tax Assessment Act 1997. 9 Income Tax Assessment Act 1997 10 2 At the end of subsection 104-520(3) 11 Add: 12 Note: The amount remaining may be reduced under section 707-415. 13 3 Subsection 243-35(2) (method statement, at the end of step 14 1) 15 Add: 16 Note: The amount of a capital allowance deduction may be reduced under 17 section 707-415. 18 4 At the end of Subdivision 707-D 19 Add: 20 707-415 Application of losses with nil available fraction for certain 21 purposes 22 (1) Subsection (2) applies if: 23 (a) an entity (the joining entity) becomes a * member of a 24 * consolidated group at a time (the joining time); and 25 (b) a * tax loss or a * net capital loss was transferred from the 26 joining entity to the * head company of the group at the 27 joining time under Subdivision 707-A; and 28 (c) that loss is included in a * bundle of losses for which the 29 * available fraction is 0. 50 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] 1 (2) The * head company can choose to apply the loss as shown in the 2 table: 3 Item If ... the head company can for the purposes choose to apply the of ... loss in reduction of ... 1 (a) the jo ining entity owed the total net forgiven applying that total a debt just before the amount mentioned in net forgiven joining t ime to an entity subsection 245-105(1) amount in that was not a * member in that Schedule accordance with of the group at the subsections joining t ime; and 245-105(5), (6), (b) the loss is wholly or (7) and (8) of that partly attributable to the Schedule. debt; and (c) Subdivision 245-E in Schedule 2C to the Income Tax Assessment Act 1936 applies in relation to the debt (or another debt that is reasonably connected to the debt) because the debt is forgiven after the joining t ime 2 (a) the jo ining entity owed the deduction working out the a * limited recourse debt excess referred to just before the joining in subsection time to an entity that 243-35(1). was not a * member of the group at the joining time; and (b) Div ision 243 applies in relation to the debt; and (c) the loss is wholly o r partly attributable to a deduction mentioned in paragraph 243-15(1)(c) for an income year ending before the joining t ime 3 (a) the jo ining entity ceases the amount remain ing working out to be a *subsidiary mentioned in paragraph Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 51 [Page Break] Item If ... the head company can for the purposes choose to apply the of ... loss in reduction of ... member of the group at 104-520(1)(b ) whether * CGT a time (the leaving event L5 happens time) after the joining at the leaving time; and time, and if so, (b) the entity's liab ilities at the amount of any the leaving time are the * capital gain same as, or are under subsection reasonably connected 104-520(3). to, the liabilities that it had at the joining time 1 Limits on application of loss 2 (3) The loss can be applied under subsection (2) in relation to an 3 income year only to the extent that it could be * utilised by the 4 * head company for the income year, on the assumption that the 5 * available fraction for the * bundle of losses was 1. 6 (4) The amount of the loss that may be applied in accordance with 7 item 1 of the table in subsection (2) cannot exceed the gross 8 forgiven amount (within the meaning of section 245-75 in 9 Schedule 2C to the Income Tax Assessment Act 1936) of the debt to 10 which the loss is attributable. 11 (5) The amount of the loss that may be applied in accordance with 12 item 2 of the table in subsection (2) cannot exceed the amount of 13 the loss that is attributable to the deduction mentioned in that item. 14 (6) For the purposes of item 3 of the table in subsection (2), if: 15 (a) assuming that the joining entity ceased to be a *subsidiary 16 member of the *consolidated group just after the joining time, 17 the * head company of the group would make a * capital gain 18 because of * CGT event L5; and 19 (b) the sum of the losses in the * bundle of losses mentioned in 20 paragraph (1)(c) exceeds the amount of the capital gain; 21 the total amount of those losses that may be applied in accordance 22 with that item cannot exceed the amount of the capital gain. 23 (7) To avoid doubt, a loss can be applied under this section only to the 24 extent that it has not already been applied. 52 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] 1 5 Application 2 The amendments made by this Schedule apply on and after 1 July 2002. 3 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 53 [Page Break] Part 1 References to Ministers, Depart ments and Secretaries 1 Schedule 5--Minor amendments 2 Part 1--References to Ministers, Departments and 3 Secretaries 4 Division 1--Amendments commencing on Royal Assent 5 Excise Act 1901 6 1 Subsection 4(1) 7 Insert: 8 Finance Minister has the meaning given by the Income Tax 9 Assessment Act 1997. 10 2 Subsection 4(1) (definition of Industry Minister) 11 Repeal the definition. 12 3 Subsection 4(1) 13 Insert: 14 Resources Minister has the meaning given by the Petroleum 15 Resource Rent Tax Assessment Act 1987. 16 4 At the end of paragraphs 162B(5)(a) and (b) 17 Add "and". 18 5 Subsection 162B(5) 19 Omit "Minister for Finance", substitute "Finance Minister". 20 6 Paragraph 165A(1)(b) 21 Omit "Industry Minister", substitute "Resources Minister". 22 7 Paragraph 165A(2)(b) 23 Omit "Industry Minister", substitute "Resources Minister". 24 8 Subsection 165A(3) 25 Omit "Industry Minister", substitute "Resources Minister". 54 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] References to Ministers, Departments and Secretaries Part 1 1 9 Subsection 165A(4) 2 Omit "Industry Minister", substitute "Resources Minister". 3 10 Subsection 165A(11) 4 Omit "Minister for Finance", substitute "Finance Minister". 5 11 Subsection 165A(12) 6 Omit "Minister for Finance", substitute "Finance Minister". 7 Excise Tariff Act 1921 8 12 Subsection 3(1) (definition of intermediate area) 9 Omit "Minister for Industry, Science and Resources", substitute 10 "Resources Minister". 11 13 Subsection 3A(1) 12 Omit "Minister for Industry, Science and Resources", substitute 13 "Resources Minister". 14 Fringe Benefits Tax (Application to the Commonwealth) Act 15 1986 16 14 Subsection 3(1) 17 Insert: 18 Finance Department means the Department that: 19 (a) deals with matters arising under section 1 of the Financial 20 Management and Accountability Act 1997; and 21 (b) is administered by the Finance Minister. 22 15 Subsection 3(1) 23 Insert: 24 Finance Minister has the meaning given by the Income Tax 25 Assessment Act 1997. 26 16 Subsection 3(1) (at the end of paragraph (a) of the 27 definition of responsible Department) 28 Add "and". Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 55 [Page Break] Part 1 References to Ministers, Depart ments and Secretaries 1 17 Subsection 3(1) (paragraph (c) of the definition of 2 responsible Department) 3 Omit "Department of the Special Minister of State", substitute "Finance 4 Department". 5 18 Subsection 7(1) 6 Omit "Minister for Finance", substitute "Finance Minister". 7 Note: The heading to section 7 is altered by omitting "Minister for Finance" and substituting 8 "Finance Minister". 9 Fringe Benefits Tax Assessment Act 1986 10 19 Paragraph 47(8)(b) 11 Omit "Department of Health, Housing, Local Government and 12 Community Services", substitute "Families Department". 13 20 Subsection 136(1) 14 Insert: 15 Families Department has the meaning given by the Income Tax 16 Assessment Act 1997. 17 Income Tax Assessment Act 1936 18 21 Subsection 6(1) 19 Insert: 20 Agriculture Secretary has the meaning given by the Income Tax 21 Assessment Act 1997. 22 22 Subsection 6(1) 23 Insert: 24 Arts Department has the meaning given by the Income Tax 25 Assessment Act 1997. 26 23 Subsection 6(1) 27 Insert: 56 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] References to Ministers, Departments and Secretaries Part 1 1 Arts Minister has the meaning given by the Income Tax 2 Assessment Act 1997. 3 24 Subsection 6(1) 4 Insert: 5 Arts Secretary has the meaning given by the Income Tax 6 Assessment Act 1997. 7 25 Subsection 6(1) 8 Insert: 9 Defence Department means the Department that: 10 (a) deals with matters arising under section 1 of the Defence Act 11 1903; and 12 (b) is administered by the Defence Minister. 13 26 Subsection 6(1) 14 Insert: 15 Defence Minister has the meaning given by the Income Tax 16 Assessment Act 1997. 17 27 Subsection 6(1) 18 Insert: 19 Defence Secretary means the Secretary of the Defence 20 Department. 21 28 Subsection 6(1) 22 Insert: 23 Education Department has the meaning given by the Income Tax 24 Assessment Act 1997. 25 29 Subsection 6(1) 26 Insert: 27 Education Secretary means the Secretary of the Education 28 Department. 29 30 Subsection 6(1) Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 57 [Page Break] Part 1 References to Ministers, Depart ments and Secretaries 1 Insert: 2 Employment Department means the Department that: 3 (a) deals with matters arising under section 1 of the Fair Work 4 Act 2009; and 5 (b) is administered by the Employment Minister. 6 31 Subsection 6(1) 7 Insert: 8 Employment Minister means the Minister administering section 1 9 of the Fair Work Act 2009. 10 32 Subsection 6(1) 11 Insert: 12 Employment Secretary means the Secretary of the Employment 13 Department. 14 33 Subsection 6(1) 15 Insert: 16 Families Secretary has the meaning given by the Income Tax 17 Assessment Act 1997. 18 34 Subsection 6(1) 19 Insert: 20 Health Department means the Department that: 21 (a) deals with matters arising under section 1 of the National 22 Health Act 1953; and 23 (b) is administered by the Health Minister. 24 35 Subsection 6(1) 25 Insert: 26 Health Minister means the Minister administering section 1 of the 27 National Health Act 1953. 28 36 Subsection 6(1) 29 Insert: 58 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] References to Ministers, Departments and Secretaries Part 1 1 Health Secretary means the Secretary of the Health Department. 2 37 Subsection 6(1) 3 Insert: 4 Housing Secretary has the meaning given by the Income Tax 5 Assessment Act 1997. 6 38 Subsection 6(1) 7 Insert: 8 Immigration Department means the Department that: 9 (a) deals with matters arising under section 1 of the Migration 10 Act 1958; and 11 (b) is administered by the Immigration Minister. 12 39 Subsection 6(1) 13 Insert: 14 Immigration Minister means the Minister administering section 1 15 of the Migration Act 1958. 16 40 Subsection 6(1) 17 Insert: 18 Immigration Secretary means the Secretary of the Immigration 19 Department. 20 41 Subsection 6(1) 21 Insert: 22 Research Department means the Department that: 23 (a) deals with matters arising under section 1 of the Australian 24 Research Council Act 2001; and 25 (b) is administered by the Research Minister. 26 42 Subsection 6(1) 27 Insert: 28 Research Minister means the Minister administering section 1 of 29 the Australian Research Council Act 2001. Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 59 [Page Break] Part 1 References to Ministers, Depart ments and Secretaries 1 43 Subsection 6(1) 2 Insert: 3 Research Secretary means the Secretary of the Research 4 Department. 5 44 Subsection 6(1) 6 Insert: 7 social security law has the meaning given by the Social Security 8 Act 1991. 9 45 Subsection 6(1) 10 Insert: 11 Trade Department means the Department that: 12 (a) deals with matters arising under section 1 of the Export 13 Market Development Grants Act 1997; and 14 (b) is administered by the Trade Minister. 15 46 Subsection 6(1) 16 Insert: 17 Trade Minister means the Minister administering section 1 of the 18 Export Market Development Grants Act 1997. 19 47 Subsection 6(1) 20 Insert: 21 Trade Secretary means the Secretary of the Trade Department. 22 48 Subsection 6(1) 23 Insert: 24 Veterans' Affairs Department means the Department that: 25 (a) deals with matters arising under section 1 of the Veterans' 26 Entitlements Act 1986; and 27 (b) is administered by the Veterans' Affairs Minister. 28 49 Subsection 6(1) 29 Insert: 60 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] References to Ministers, Departments and Secretaries Part 1 1 Veterans' Affairs Minister means the Minister administering 2 section 1 of the Veterans' Entitlements Act 1986. 3 50 Subsection 6(1) 4 Insert: 5 Veterans' Affairs Secretary means the Secretary of the Veterans' 6 Affairs Department. 7 51 At the end of paragraphs 16(4)(a), (b), (c) and (d) 8 Add "or". 9 52 Paragraph 16(4)(e) 10 Repeal the paragraph, substitute: 11 (e) the Employment Secretary, or the Families Secretary, for the 12 purpose of the administration of the social security law; or 13 53 Paragraph 16(4)(ea) 14 Omit "Secretary to the Department of Employment, Education and 15 Training", substitute "Employment Secretary". 16 54 At the end of paragraph 16(4)(ea) 17 Add "or". 18 55 Paragraph 16(4)(eb) 19 Omit "(within the meaning of the Social Security Act 1991);", substitute 20 "; or". 21 56 Paragraph 16(4)(f) 22 Omit "Secretary to the Department of Health", substitute "Health 23 Secretary". 24 57 Paragraph 16(4)(f) 25 Omit "Minister of State for Health", substitute "Health Minister". 26 58 At the end of paragraphs 16(4)(f), (fa) and (fb) 27 Add "or". 28 59 Paragraph 16(4)(fc) Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 61 [Page Break] Part 1 References to Ministers, Depart ments and Secretaries 1 Omit "Secretary to the Department of Family and Community 2 Services", substitute "Families Secretary". 3 60 At the end of paragraphs 16(4)(fc), (fd), (g), (gaa), (ga) and 4 (gb) 5 Add "or". 6 61 Paragraph 16(4)(h) 7 Omit "Secretary, Department of Defence,", substitute "Defence 8 Secretary". 9 62 At the end of paragraphs 16(4)(h) and (ha) 10 Add "or". 11 63 Paragraph 16(4)(hb) 12 Omit "Secretary to the Department of Education and the Secretary to 13 the Department of Social Security", substitute "Education Secretary or 14 the Secretary of the Department of Human Services,". 15 64 At the end of paragraphs 16(4)(hb), (hba), (hc), (hca), 16 (hcaa) and (hcb) 17 Add "or". 18 65 Paragraph 16(4)(hd) 19 Omit "Secretary to the Department of Immigration and Ethnic Affairs", 20 substitute "Immigration Secretary". 21 66 At the end of paragraph 16(4)(hd) 22 Add "or". 23 67 Paragraph 16(4)(j) 24 Omit "Secretary to the Department of Housing and Construction", 25 substitute "Housing Secretary or the Secretary of the Department of the 26 Treasury". 27 68 At the end of paragraphs 16(4)(j) and (ja) 28 Add "or". 29 69 Subsection 16(5B) 62 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] References to Ministers, Departments and Secretaries Part 1 1 Omit "Secretary to the Department of Trade", substitute "Trade 2 Secretary". 3 70 Subsection 16(5C) 4 Omit "Secretary to the Department of Trade", substitute "Trade 5 Secretary". 6 71 Subsections 23AF(11) to (14) 7 Omit "Minister for Trade", substitute "Trade Minister". 8 72 Subsection 23AF(18) (at the end of paragraphs (a) to (d) of 9 the definition of eligible project) 10 Add "or". 11 73 Subsection 23AF(18) (paragraph (f) of the definition of 12 eligible project) 13 Omit "Minister for Trade", substitute "Trade Minister". 14 74 Subsection 73A(6) (definition of Research Secretary) 15 Repeal the definition. 16 75 Subsection 124K(1) (definition of Australian film) 17 Omit "Minister", substitute "Arts Minister". 18 76 Subsection 124K(1) (definition of Minister) 19 Repeal the definition. 20 77 Subsections 124K(1A) and (1B) 21 Omit "Minister", substitute "Arts Minister". 22 78 Subsection 124K(1B) 23 Omit "Secretary to the Minister's Department", substitute "Arts 24 Secretary". 25 79 Subsection 124K(1B) 26 Omit "Minister's Department" (second occurring), substitute "Arts 27 Department". 28 80 Subsection 124K(1D) Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 63 [Page Break] Part 1 References to Ministers, Depart ments and Secretaries 1 Omit "Minister", substitute "Arts Minister". 2 81 Subsection 124ZAA(1) (definition of Minister) 3 Repeal the definition. 4 82 Subsection 124ZAA(11) 5 Omit "Minister" (first occurring), substitute "Arts Minister". 6 83 Subsection 124ZAB(1) 7 Omit "Minister", substitute "Arts Minister". 8 84 At the end of paragraph 124ZAB(2)(a) 9 Add "and". 10 85 Paragraph 124ZAB(2)(c) 11 Omit "Minister", substitute "Arts Minister". 12 86 Subsections 124ZAB(3) to (4) 13 Omit "Minister" (first occurring), substitute "Arts Minister". 14 87 Subsection 124ZAB(5) 15 Omit "Minister", substitute "Arts Minister". 16 88 Paragraph 124ZAB(6)(a) 17 Omit "Minister", substitute "Arts Minister". 18 89 Subsections 124ZAB(6A) and (7) 19 Omit "Minister" (first occurring), substitute "Arts Minister". 20 90 Subsection 124ZAC(1) 21 Omit "Minister", substitute "Arts Minister". 22 91 At the end of paragraph 124ZAC(2)(a) 23 Add "and". 24 92 Paragraph 124ZAC(2)(c) 25 Omit "Minister", substitute "Arts Minister". 26 93 Subsections 124ZAC(3) and (5) 64 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] References to Ministers, Departments and Secretaries Part 1 1 Omit "Minister" (first occurring), substitute "Arts Minister". 2 94 Section 124ZAD 3 Omit "Minister" (first occurring), substitute "Arts Minister". 4 95 At the end of paragraphs 124ZAD(a) and (b) 5 Add "and". 6 96 At the end of subparagraph 124ZAD(c)(i) 7 Add "and". 8 97 At the end of paragraphs 124ZAD(c) and (d) 9 Add "and". 10 98 Subsection 124ZADAA(1) 11 Omit "(1) The Minister", substitute "The Arts Minister". 12 Note: The heading to section 124ZADAA is altered by omitting "Minister" and substituting 13 "Arts Minister". 14 99 Subsection 124ZADAA(1) 15 Omit "Secretary to the Minister's Department", substitute "Arts 16 Secretary". 17 100 Subsection 124ZADAA(1) 18 Omit "Minister's Department" (second occurring), substitute "Arts 19 Department". 20 101 Subsections 124ZADAB(1) and (2) 21 Omit "Minister", substitute "Arts Minister". 22 Note: The heading to section 124ZADAB is altered by omitting "Minister" and substituting 23 "Arts Minister". 24 102 Subsection 159J(6) (paragraph (c) of the definition of 25 invalid relative) 26 Omit "Department of Health", substitute "Health Department". 27 103 Subsection 159J(6) (paragraph (c) of the definition of 28 invalid relative) Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 65 [Page Break] Part 1 References to Ministers, Depart ments and Secretaries 1 Omit "Secretary to the Department of Social Security", substitute 2 "Families Secretary". 3 104 Subsection 202CB(6) 4 Omit "Secretary to the Department of Social Security", substitute 5 "Education Secretary, to the Employment Secretary". 6 105 Subsection 202CB(7) 7 Omit "Secretary to the Department of Veterans' Affairs", substitute 8 "Veterans' Affairs Secretary". 9 106 Subsection 202CE(7) 10 Omit "Secretary to the Department of Social Security", substitute 11 "Employment Secretary". 12 107 Subsection 202CE(8) 13 Omit "Secretary to the Department of Veterans' Affairs", substitute 14 "Veterans' Affairs Secretary". 15 108 Paragraph 251R(5)(d) 16 Omit "Secretary of the Department whose Minister administers that 17 Act", substitute "Families Secretary". 18 109 At the end of paragraphs 251U(1)(a), (b), (c), (ca), (caa), 19 (cb), (cc) and (d) 20 Add "or". 21 110 At the end of subparagraph 251U(1)(e)(i) 22 Add "or". 23 111 Paragraph 251U(1)(f) 24 Omit "Minister for Health", substitute "Health Minister". 25 112 Subsection 264AA(1) 26 Omit "Secretary to the Department of Primary Industries and Energy", 27 substitute "Agriculture Secretary". 28 Note: The heading to section 264AA is altered by omitting "Department of Primary 29 Industries and Energy" and substituting "Agriculture Secretary". 66 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] References to Ministers, Departments and Secretaries Part 1 1 Income Tax Assessment Act 1997 2 113 Section 25-7 (note) 3 Omit "Secretary to the Department of Family and Community 4 Services", substitute "Families Secretary". 5 114 Subsection 30-25(1) (table item 2.1.7) 6 Omit "Minister for Employment, Education, Training and Youth 7 Affairs", substitute "* Education Minister". 8 115 Paragraph 30-30(1)(c) 9 Omit "Minister for Employment, Education, Training and Youth 10 Affairs", substitute "* Education Minister". 11 116 Paragraph 30-30(1)(d) 12 Omit "Minister", substitute "Education Minister". 13 117 Section 30-75 14 Before "Minister", insert "* Families". 15 118 Subsection 30-80(1) (table item 9.1.2) 16 Omit "Minister for Foreign Affairs", substitute "* Foreign Affairs 17 Minister". 18 119 Paragraph 30-85(2)(a) 19 Omit "Minister for Foreign Affairs", substitute "* Foreign Affairs 20 Minister". 21 120 Paragraph 30-85(2)(b) 22 Omit "Minister for Foreign Affairs", substitute "Foreign Affairs 23 Minister". 24 121 Subsection 30-85(5) 25 Omit "Minister for Foreign Affairs", substitute "* Foreign Affairs 26 Minister". 27 122 Subsection 30-210(1) 28 Omit "Secretary to the Department of Communications and the Arts", 29 substitute "* Arts Secretary". Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 67 [Page Break] Part 1 References to Ministers, Depart ments and Secretaries 1 123 Subsections 30-230(5) and 30-235(1) 2 Omit "Minister for Communications and the Arts", substitute "* Arts 3 Minister". 4 124 Section 30-240 5 Omit "Minister for Communications and the Arts", substitute "* Arts 6 Minister". 7 125 Section 30-287 8 Omit "Secretary of the Department of Family and Community 9 Services", substitute "* Families Secretary". 10 126 Subsection 30-289(4) 11 Omit "Minister for Family and Community Services", substitute 12 "* Families Minister". 13 127 Subsections 30-289A(3) and 30-289B(1) 14 Omit "Secretary of the Department of Family and Community 15 Services", substitute "* Families Secretary". 16 128 Subsections 30-289B(1) and (4) and 30-289C(1) 17 Omit "Minister for Family and Community Services", substitute 18 "* Families Minister". 19 129 Subsection 30-289C(1) 20 Omit "Secretary of the Department of Family and Community 21 Services", substitute "* Families Secretary". 22 130 Section 30-295 23 Omit "Secretary to the Department of Communications and the Arts", 24 substitute "* Arts Secretary". 25 131 Subsection 30-300(6) 26 Omit "Minister for Communications and the Arts", substitute "* Arts 27 Minister". 28 132 Subsection 30-300(7) 29 Omit "Secretary to the Department of Communications and the Arts", 30 substitute "* Arts Secretary". 68 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] References to Ministers, Departments and Secretaries Part 1 1 133 Subsection 30-305(1) 2 Omit "Secretary to the Department of Communications and Arts", 3 substitute "* Arts Secretary". 4 134 Subsections 30-305(1) and (4) and 30-310(1) 5 Omit "Minister for Communications and the Arts", substitute "* Arts 6 Minister". 7 135 Subsection 30-310(1) 8 Omit "Secretary to the Department of Communications and the Arts", 9 substitute "* Arts Secretary". 10 136 Subsection 34-25(1) 11 Omit "Secretary to the Department of Industry, Science and Tourism 12 (the Industry Secretary)", substitute "* Industry Secretary". 13 137 Section 34-65 14 Omit "Department of Industry, Science and Tourism", substitute 15 "* Industry Department". 16 138 Subsection 40-180(2) (table item 10) 17 Omit "Minister for Finance", substitute "* Finance Minister". 18 139 Subsection 40-300(2) (table item 11) 19 Omit "Minister for Finance", substitute "* Finance Minister". 20 140 Paragraph 40-670(1)(a) 21 Omit "Secretary of the Department of Agriculture, Fisheries and 22 Forestry", substitute "* Agriculture Secretary". 23 141 Paragraph 40-670(1)(b) 24 Omit "that Department", substitute "the * Agriculture Department". 25 142 Paragraph 40-670(1)(b) 26 Omit "that Secretary", substitute "the Agriculture Secretary". 27 143 Paragraph 51-32(3)(b) 28 Omit "Minister administering section 1 of the Defence Act 1903", 29 substitute "* Defence Minister". Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 69 [Page Break] Part 1 References to Ministers, Depart ments and Secretaries 1 144 Subsection 51-32(3) 2 Omit "that Act", substitute "the Defence Act 1903". 3 145 Subsection 52-131(9) (note) 4 Repeal the note, substitute: 5 Note: In 2009, the ABSTUDY Policy M anual was accessible through the 6 website of the Education Department. 7 146 Subsection 61-630(3) 8 Omit "Minister administering the Student Assistance Act 1973 (the 9 Education Minister)", substitute "* Education Minister". 10 147 Subsection 61-630(5) 11 Omit "Education Minister", substitute "* Education Minister". 12 148 Paragraph 375-865(2)(b) 13 Omit "Arts Minister", substitute "* Arts Minister". 14 149 Paragraphs 376-10(1)(b) and (c), 376-230(1)(a) and (b) and 15 376-240(3)(d) 16 Omit "* Arts Minister", substitute "Arts Minister". 17 150 Section 396-5 18 Omit "Minister for Transport and Regional Development", substitute 19 "Transport Minister". 20 151 Section 396-40 21 Omit "Minister for Transport and Regional Development", substitute 22 "* Transport Minister". 23 152 Subsections 396-65(1) and (2) 24 Omit "Minister for Transport and Regional Development", substitute 25 "* Transport Minister". 26 153 Section 396-70 (heading) 27 Repeal the heading, substitute: 70 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] References to Ministers, Departments and Secretaries Part 1 1 396-70 Transport Minister to consider applications 2 154 Subsections 396-70(1), (5) and (6) 3 Omit "Minister for Transport and Regional Development", substitute 4 "* Transport Minister". 5 155 Subsection 396-70(7) 6 Omit "Minister for Transport and Regional Development" (first 7 occurring), substitute "* Transport Minister". 8 156 Subsection 396-70(7) 9 Omit "for Transport and Regional Development" (second occurring). 10 157 Subsection 396-75(1) 11 Omit "Minister for Transport and Regional Development" (first 12 occurring), substitute "* Transport Minister". 13 158 Paragraph 396-75(1)(g) 14 Omit "for Transport and Regional Development". 15 159 Subsection 396-75(2) 16 Omit "Minister for Transport and Regiona l Development", substitute 17 "* Transport Minister". 18 160 Subsection 396-80(1) 19 Omit "Minister for Transport and Regional Development" (first 20 occurring), substitute "* Transport Minister". 21 161 Subsection 396-80(1) 22 Omit "for Transport and Regional Development" (second occurring). 23 162 Subsection 396-80(4) 24 Omit "Minister for Transport and Regional Development", substitute 25 "* Transport Minister". 26 163 Paragraph 396-80(5)(b) 27 Omit "Minister for Transport and Regional Development", substitute 28 "* Transport Minister". Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 71 [Page Break] Part 1 References to Ministers, Depart ments and Secretaries 1 164 Subsection 396-80(5) 2 Omit "for Transport and Regional Development" (last occurring). 3 165 Subsection 396-90(2) 4 Omit "Minister for Transport and Regional Development", substitute 5 "* Transport Minister". 6 166 Section 396-100 7 Omit "Minister for Transport and Regional Development", substitute 8 "* Transport Minister". 9 167 Section 396-105 (heading) 10 Repeal the heading, substitute: 11 396-105 Delegation by Transport Minister 12 168 Section 396-105 13 Omit "Minister for Transport and Regional Development", substitute 14 "* Transport Minister". 15 169 Section 396-105 16 Omit "Secretary to that Minister's Department", substitute "* Transport 17 Secretary". 18 170 Section 396-105 19 Omit "that Minister's Department" (second occurring), substitute "the 20 * Transport Department". 21 171 Section 396-110 (heading) 22 Repeal the heading, substitute: 23 396-110 Decision by Transport Minister not revie wable by AAT 24 172 Section 396-110 25 Omit "Minister for Transport and Regional Development", substitute 26 "* Transport Minister". 27 173 Subsection 995-1(1) 72 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] References to Ministers, Departments and Secretaries Part 1 1 Insert: 2 Agriculture Department means the Department that: 3 (a) deals with matters arising under section 1 of the Farm 4 Household Support Act 1992; and 5 (b) is administered by the * Agriculture Minister. 6 174 Subsection 995-1(1) 7 Insert: 8 Agriculture Minister means the Minister administering section 1 9 of the Farm Household Support Act 1992. 10 175 Subsection 995-1(1) 11 Insert: 12 Agriculture Secretary means the Secretary of the * Agriculture 13 Department. 14 176 Subsection 995-1(1) 15 Insert: 16 Arts Department means the Department that: 17 (a) deals with matters arising under section 1 of the National 18 Gallery Act 1975; and 19 (b) is administered by the * Arts Minister. 20 177 Subsection 995-1(1) (definition of Arts Minister) 21 Repeal the definition, substitute: 22 Arts Minister means the Minister administering section 1 of the 23 National Gallery Act 1975. 24 178 Subsection 995-1(1) (definition of Arts Secretary) 25 Repeal the definition, substitute: 26 Arts Secretary means the Secretary of the * Arts Department. 27 179 Subsection 995-1(1) 28 Insert: 29 Climate Change Department means the Department that: Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 73 [Page Break] Part 1 References to Ministers, Depart ments and Secretaries 1 (a) deals with matters arising under section 1 of the National 2 Greenhouse and Energy Reporting Act 2007; and 3 (b) is administered by the * Climate Change Minister. 4 180 Subsection 995-1(1) (definition of Climate Change 5 Minister) 6 After "administering", insert "section 1 of". 7 181 Subsection 995-1(1) (definition of Climate Change 8 Secretary) 9 Repeal the definition, substitute: 10 Climate Change Secretary means the Secretary of the * Climate 11 Change Department. 12 182 Subsection 995-1(1) (definition of Defence Minister) 13 After "administering", insert "section 1 of". 14 183 Subsection 995-1(1) 15 Insert: 16 Education Department means the Department that: 17 (a) deals with matters arising under section 1 of the Student 18 Assistance Act 1973; and 19 (b) is administered by the * Education Minister. 20 184 Subsection 995-1(1) 21 Insert: 22 Education Minister means the Minister administering section 1 of 23 the Student Assistance Act 1973. 24 185 Subsection 995-1(1) 25 Insert: 26 Environment Department means the Department that: 27 (a) deals with matters arising under section 1 of the Environment 28 Protection and Biodiversity Conservation Act 1999; and 29 (b) is administered by the * Environment Minister. 74 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] References to Ministers, Departments and Secretaries Part 1 1 186 Subsection 995-1(1) (definition of Environment Minister) 2 After "administering", insert "section 1 of". 3 187 Subsection 995-1(1) (definition of Environment 4 Secretary) 5 Repeal the definition, substitute: 6 Environment Secretary means the Secretary of the * Environment 7 Department. 8 188 Subsection 995-1(1) 9 Insert: 10 Families Department means the Department that: 11 (a) deals with matters arising under section 1 of the A New Tax 12 System (Family Assistance) (Administration) Act 1999; and 13 (b) is administered by the * Families Minister. 14 189 Subsection 995-1(1) 15 Insert: 16 Families Minister means the Minister administering section 1 of 17 the A New Tax System (Family Assistance) (Administration) Act 18 1999. 19 190 Subsection 995-1(1) 20 Insert: 21 Families Secretary means the Secretary of the * Families 22 Department. 23 191 Subsection 995-1(1) 24 Insert: 25 Finance Minister means the Minister administering section 1 of 26 the Financial Management and Accountability Act 1997. 27 192 Subsection 995-1(1) 28 Insert: Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 75 [Page Break] Part 1 References to Ministers, Depart ments and Secretaries 1 Foreign Affairs Minister means the Minister administering 2 section 1 of the International Development Association Act 1960. 3 193 Subsection 995-1(1) 4 Insert: 5 Heritage Department means the Department that: 6 (a) deals with matters arising under section 1 of the Australian 7 Heritage Council Act 2003; and 8 (b) is administered by the * Heritage Minister. 9 194 Subsection 995-1(1) 10 Insert: 11 Heritage Minister means the Minister administering section 1 of 12 the Australian Heritage Council Act 2003. 13 195 Subsection 995-1(1) (definition of Heritage Secretary) 14 Repeal the definition, substitute: 15 Heritage Secretary means the Secretary of the * Heritage 16 Department. 17 196 Subsection 995-1(1) 18 Insert: 19 Housing Department means the Department that: 20 (a) deals with matters arising under section 1 of the National 21 Rental Affordability Scheme Act 2008; and 22 (b) is administered by the * Housing Minister. 23 197 Subsection 995-1(1) 24 Insert: 25 Housing Minister means the Minister administering section 1 of 26 the National Rental Affordability Scheme Act 2008. 27 198 Subsection 995-1(1) (definition of Housing Secretary) 28 Repeal the definition, substitute: 76 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] References to Ministers, Departments and Secretaries Part 1 1 Housing Secretary means the Secretary of the * Housing 2 Department. 3 199 Subsection 995-1(1) 4 Insert: 5 Industry Department means the Department that: 6 (a) deals with matters arising under section 1 of the Industry 7 Research and Development Act 1986; and 8 (b) is administered by the * Industry Minister. 9 200 Subsection 995-1(1) 10 Insert: 11 Industry Minister means the Minister administering section 1 of 12 the Industry Research and Development Act 1986. 13 201 Subsection 995-1(1) (definition of Industry Secretary) 14 Repeal the definition, substitute: 15 Industry Secretary means the Secretary of the * Industry 16 Department. 17 202 Subsection 995-1(1) 18 Insert: 19 Transport Department means the Department that: 20 (a) deals with matters arising under section 1 of the AusLink 21 (National Land Transport) Act 2005; and 22 (b) is administered by the * Transport Minister. 23 203 Subsection 995-1(1) 24 Insert: 25 Transport Minister means the Minister administering section 1 of 26 the AusLink (National Land Transport) Act 2005. 27 204 Subsection 995-1(1) 28 Insert: Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 77 [Page Break] Part 1 References to Ministers, Depart ments and Secretaries 1 Transport Secretary means the Secretary of the * Transport 2 Department. 3 Income Tax (Transitional Provisions) Act 1997 4 205 Section 30-10 5 Before "Minister" (second occurring), insert "Arts". 6 206 Subsection 30-15(1) 7 Before "Minister" (second occurring), insert "Arts". 8 207 Subsection 30-15(1) (note) 9 Before "Minister", insert "Arts". 10 208 Section 30-20 11 Before "Minister" (second occurring), insert "Arts". 12 Petroleum Resource Rent Tax Assessment Act 1987 13 209 Section 2 (definition of certifying Minister) 14 Repeal the definition. 15 210 Section 2 16 Insert: 17 Resources Department means the Department that: 18 (a) deals with matters arising under section 1 of the Offshore 19 Petroleum and Greenhouse Gas Storage Act 2006; and 20 (b) is administered by the Resources Minister. 21 211 Section 2 22 Insert: 23 Resources Minister means the Minister administering section 1 of 24 the Offshore Petroleum and Greenhouse Gas Storage Act 2006. 25 212 Subsection 18(2) 78 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] References to Ministers, Departments and Secretaries Part 1 1 Omit "certifying Minister or an officer of the Department of Primary 2 Industries and Energy authorised by the certifying", substitute 3 "Resources Minister or an officer of the Resources Department 4 authorised by the". 5 213 Subsection 18(3) 6 Omit "certifying Minister", substitute "Resources Minister". 7 214 Subsection 20(1) 8 Omit "certifying Minister" (first occurring), substitute "Resources 9 Minister". 10 215 At the end of paragraph 20(1)(a) 11 Add "and". 12 216 Subsection 20(1) 13 Omit "certifying Minister shall", substitute "Minister must". 14 217 Paragraph 20(2)(b) 15 Omit "certifying Minister" (first occurring), substitute "Resources 16 Minister". 17 218 Paragraph 20(2)(b) 18 Omit "certifying" (second and third occurring). 19 219 Subsection 20(7) 20 Omit "certifying Minister" (first occurring), substitute "Resources 21 Minister". 22 220 Subsection 20(7) 23 Omit "certifying Minister shall", substitute "Minister must". 24 221 Subsection 20(8) 25 Omit "certifying Minister" (first occurring), substitute "Resources 26 Minister". 27 222 Subsection 20(8) 28 Omit "certifying" (second and third occurring). Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 79 [Page Break] Part 1 References to Ministers, Depart ments and Secretaries 1 223 Subsections 20(8) and (9) 2 Omit "certifying Minister shall", substitute "Minister must". 3 224 Paragraph 20(12)(a) 4 Omit "certifying Minister", substitute "Resources Minister". 5 225 At the end of paragraph 20(12)(a) 6 Add "or". 7 226 Paragraphs 20(12)(b) and (c) 8 Omit "certifying". 9 227 Subsection 36B(1) 10 Omit "Minister administering the Offshore Petroleum and Greenhouse 11 Gas Storage Act 2006", substitute "Resources Minister". 12 228 Subsections 36B(2), (3) and (5) 13 Omit "Minister", substitute "Resources Minister". 14 229 Subsection 36B(5) 15 Omit "Minister's Department", substitute "Resources Department". 16 230 Subsection 108(5) 17 Omit "certifying Minister", substitute "Resources Minister". 18 Superannuation Contributions Tax (Application to the 19 Commonwealth) Act 1997 20 231 At the end of section 3 21 Add: 22 (3) In this Act: 23 Finance Minister has the meaning given by the Income Tax 24 Assessment Act 1997. 25 232 Subsection 6(1) 26 Omit "Minister for Finance", substitute "Finance Minister". 80 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] References to Ministers, Departments and Secretaries Part 1 1 Note: The heading to section 6 is altered by omitting "Minister for Finance" and substituting 2 "Finance Minister". 3 Taxation Administration Act 1953 4 233 Subsection 2(1) 5 Insert: 6 Immigration Secretary has the meaning given by the Income Tax 7 Assessment Act 1936. 8 234 Subsection 14Q(1) (definition of Immigration Department) 9 Repeal the definition. 10 235 Subparagraph 14S(4)(b)(i) 11 Omit "Secretary to the Immigration Department", substitute 12 "Immigration Secretary". 13 236 Subsection 14S(5) 14 Omit "Secretary to the Immigration Department", substitute 15 "Immigration Secretary". 16 Division 2--Other amendments 17 Income Tax Assessment Act 1997 18 237 Subsection 995-1(1) (paragraph (a) of the definition of 19 Transport Department) 20 Omit "AusLink (National Land Transport) Act 2005", substitute 21 "Nation Building Program (National Land Transport) Act 2009". 22 238 Subsection 995-1(1) (definition of Transport Minister) 23 Omit "AusLink (National Land Transport) Act 2005", substitute 24 "Nation Building Program (National Land Transport) Act 2009". 25 Taxation Administration Act 1953 26 239 Subsection 2(1) 27 Insert: Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 81 [Page Break] Part 1 References to Ministers, Depart ments and Secretaries 1 Immigration Department has the meaning given by the Income 2 Tax Assessment Act 1936. 3 240 Subsection 2(1) 4 Insert: 5 Immigration Minister has the meaning given by the Income Tax 6 Assessment Act 1936. 7 241 Subsection 2(1) 8 Insert: 9 migration officer means: 10 (a) the Immigration Secretary; or 11 (b) an employee of the Immigration Department. 12 242 Subparagraphs 3ED(1)(b)(i) and (ii) and (3)(a)(i) and (ii) 13 and (b)(i) 14 Omit "Minister's", substitute "Immigration Minister's". 15 243 Section 3ED(5) (definition of migration officer) 16 Repeal the definition. 17 82 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] Repeal of Part IV of the Taxation Ad min istration Act 1953 Part 2 1 Part 2--Repeal of Part IV of the Taxation 2 Administration Act 1953 3 Administrative Decisions (Judicial Review) Act 1977 4 244 Paragraph (g) of Schedule 1 5 Repeal the paragraph. 6 Banking Act 1959 7 245 Section 39B 8 Repeal the section. 9 Taxation Administration Act 1953 10 246 Subsection 3(1) 11 Omit "(1) Subject to subsection (2), this", substitute "This". 12 247 Subsection 3(2) 13 Repeal the subsection. 14 248 Paragraph 3B(1AA)(a) 15 Repeal the paragraph, substitute: 16 (a) include information concerning any breaches, of which the 17 Commissioner has notice, of undertakings given for the 18 purposes of subsection 14C(2); and 19 249 Subsection 3B(4) (definition of this Act) 20 Omit "except insofar as it relates to Part IV". 21 250 Subsection 3C(9) (definition of this Act) 22 Omit "except insofar as it relates to Part IV". 23 251 Paragraph 8J(2)(p) 24 Omit "or 14I(1)(c)". 25 252 Part IV 26 Repeal the Part. Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 83 [Page Break] Part 2 Repeal of Part IV of the Taxation Administration Act 1953 1 253 Section 14ZQ (definition of appealable objection 2 decision) 3 Repeal the definition. 4 254 Paragraph 14ZR(1)(a) 5 Omit ", but not including section 14E of this Act". 6 255 Paragraphs 14ZZ(a) to (c) 7 Repeal the paragraphs, substitute: 8 (a) if the decision is a reviewable objection decision--either: 9 (i) apply to the Tribunal for review of the decision; or 10 (ii) appeal to the Federal Court against the decision; or 11 (b) otherwise--appeal to the Federal Court against the decision. 12 256 Sections 14ZZN, 14ZZO and 14ZZP 13 Omit "appealable". 14 Note 1: The heading to section 14ZZP is altered by omitting "appealable". 15 Note 2: The heading to section 14ZZQ is altered by omitting "appealable". 16 257 Paragraphs 14ZZS(1)(a) and (b) 17 Omit "appealable". 18 84 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] Amend ments relating to foreign income ta x offsets and foreign losses Part 3 1 Part 3--Amendments relating to foreign income tax 2 offsets and foreign losses 3 Income Tax Assessment Act 1997 4 258 Subsection 770-135(1) 5 After "entity", insert "(other than a * CFC or a * FIF)". 6 Income Tax (Transitional Provisions) Act 1997 7 259 Subsection 770-1(1) 8 Omit "The Income Tax Assessment Act 1936", substitute "Subject to 9 subsection (4), the Income Tax Assessment Act 1936". 10 260 At the end of section 770-1 11 Add: 12 (4) A reference in section 90 of the 1936 Act to deductions allowable 13 under Division 36 of the 1997 Act does not include a reference to 14 deductions in respect of the foreign loss component of the tax loss. 15 Note: For foreign loss component, see section 770-25. 16 261 Paragraphs 770-5(1)(a) and (b) 17 Repeal the paragraphs, substitute: 18 (a) the entity has incurred an overall foreign loss in respect of a 19 class of assessable foreign income (within the meaning of 20 former section 160AFD of the 1936 Act) for the earlier 21 income year; and 22 (b) a positive amount (an unutilised overall foreign loss 23 amount) remains after reducing the overall foreign loss to the 24 extent that it has been taken into account under that former 25 section in reducing the entity's assessable foreign income of 26 the relevant class for an income year before the 27 commencement year; and 28 (c) a positive amount (a reduced unutilised overall foreign loss 29 amount) remains after reducing the unutilised overall foreign 30 loss amount under section 770-10. 31 262 Subsection 770-5(3) Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 85 [Page Break] Part 3 A mend ments relating to foreign income tax offsets and foreign losses 1 Omit all the words after "sum of the", substitute "reduced unutilised 2 overall foreign loss amounts for all classes of assessable foreign income 3 for the earlier year". 4 263 Section 770-10 (heading) 5 Repeal the heading, substitute: 6 770-10 Reducing an unutilised overall foreign loss amount 7 264 Section 770-10 8 Omit "overall foreign loss", substitute "unutilised overall foreign loss 9 amount". 10 265 Section 770-10 (method statement, step 1) 11 Omit "amount applicable under paragraph 770-5(1)(a) to the extent (if 12 any) that the loss", substitute "unutilised overall foreign loss amount to 13 the extent (if any) that the relevant overall foreign loss". 14 266 Section 770-10 (method statement, at the end of step 1) 15 Add: 16 Otherwise--do not reduce the unutilised overall foreign 17 loss amount under this step. 18 267 Section 770-10 (method statement, note to step 1) 19 Repeal the note. 20 268 Subsection 770-30(1) 21 Omit "any", substitute "an". 22 269 At the end of section 770-30 23 Add: 24 (3) To avoid doubt, if, because of subsection (1) or section 770-100, an 25 entity cannot deduct all or part of a tax loss in an income year, 26 subsection 36-17(7) of the 1997 Act does not prevent the entity 27 deducting other tax losses in the same year in accordance with that 28 subsection. 86 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] Amend ments relating to foreign income tax offsets and foreign losses Part 3 1 270 Paragraph 770-95(b) 2 Omit "transfer; and", substitute "transfer.". 3 271 Paragraph 770-95(c) 4 Repeal the paragraph. 5 272 Section 770-95 (notes 1 and 2) 6 Repeal the notes, substitute: 7 Note: This section ensures a tax loss retains its foreign loss component and 8 starting total even though the head company is taken, after the 9 transfer, to have made the loss for the income year in which the 10 transfer occurs. 11 273 Subsection 770-100(2) 12 Omit "(the deduction year)". 13 274 Subsection 770-100(3) 14 Omit "other entities", substitute "any entity". 15 275 Subsection 770-100(3) 16 Omit "end of the deduction year", substitute "latest time (the latest 17 transfer time) the loss was transferred to the head company". 18 276 At the end of section 770-100 19 Add: 20 (4) In applying paragraph (b) of item 2, 3 or 4 of the table in 21 subsection 770-30(1) of this Act, disregard any amount deducted, 22 in respect of a tax loss mentioned in subsection (1) of this section, 23 before the latest transfer time. 24 277 Paragraphs 770-165(1)(a) and (b) 25 Repeal the paragraphs, substitute: 26 (a) the eligible CFC has a loss under section 426 of the 1936 Act 27 for the earlier period in relation to notional assessable income 28 of a class; and 29 (b) a positive amount (an unutilised CFC loss amount) remains 30 after reducing the loss to the extent that it has been 31 previously taken into account under section 431 of the 1936 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 87 [Page Break] Part 3 A mend ments relating to foreign income tax offsets and foreign losses 1 Act in respect of a statutory accounting period before the 2 commencement period; and 3 (c) a positive amount (a reduced unutilised CFC loss amount) 4 remains after reducing the unutilised CFC loss amount under 5 section 770-170. 6 278 Subsection 770-165(3) 7 Omit all the words after "sum of the", substitute "reduced unutilised 8 CFC loss amounts in relation to notional assessable income of all 9 classes for the earlier period". 10 279 Section 770-170 (heading) 11 Repeal the heading, substitute: 12 770-170 Reducing an unutilised CFC loss amount 13 280 Section 770-170 14 Omit "each loss", substitute "each unutilised CFC loss amount". 15 281 Section 770-170 (method statement, step 1) 16 Omit "amount applicable under paragraph 770-165(1)(a) to the extent 17 (if any) that the loss", substitute "unutilised CFC loss amount to the 18 extent (if any) that the relevant loss". 19 282 Application of Part 20 The amendments made by this Part apply in relation to income years, 21 statutory accounting periods and notional accounting periods starting on 22 or after 1 July 2008. 23 88 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] Other amend ments Part 4 1 Part 4--Other amendments 2 A New Tax System (Australian Business Number) Act 1999 3 283 Subsection 25(2) (note 1) 4 Omit "Income Tax Assessment Act 1997", substitute "ITAA 1997". 5 284 Section 41 (definition of electronic signature) 6 Omit "Income Tax Assessment Act 1997", substitute "* ITAA 1997". 7 285 Section 41 (definition of non-cash benefit) 8 Omit "Income Tax Assessment Act 1997", substitute "* ITAA 1997". 9 286 Section 41 (definition of withholding payment) 10 Omit "Income Tax Assessment Act 1997", substitute "* ITAA 1997". 11 287 Section 41 (definition of withholding payment covered by 12 a particular provision in Schedule 1 to the Taxation 13 Administration Act 1953) 14 Omit "Income Tax Assessment Act 1997", substitute "* ITAA 1997". 15 Fringe Benefits Tax Assessment Act 1986 16 288 At the end of subparagraphs 10(3)(a)(i), (ii), (iii) and (iv) 17 Add "and". 18 289 Sub-subparagraph 10(3)(a)(v)(B) 19 Omit "sales tax or". 20 290 At the end of subparagraph 10(3)(c)(i) 21 Add "and". 22 291 At the end of paragraph 10(3D)(a) 23 Add "or". 24 292 Paragraph 10(3D)(c) 25 Omit "sales tax or". Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 89 [Page Break] Part 4 Other amendments 1 293 Paragraph 42(1)(a) 2 Omit "where the recipients", substitute "if the recipient's". 3 294 Subparagraph 42(1)(a)(i) 4 Omit "retailers, an", substitute "retailers--an". 5 295 At the end of sub-subparagraph 42(1)(a)(i)(B) 6 Add "or". 7 296 Subparagraph 42(1)(a)(i) 8 Omit all the words after sub-subparagraph (B). 9 297 Subparagraph 42(1)(a)(ii) 10 Omit "where", substitute "if". 11 298 Sub-subparagraph 42(1)(a)(ii)(B) 12 Omit "recipients property", substitute "recipient's property". 13 299 Subparagraph 42(1)(a)(iii) 14 Omit "recipients property", substitute "recipient's property" 15 300 At the end of subparagraph 42(1)(a)(iii) 16 Add "or". 17 301 Paragraph 42(1)(b) 18 Repeal the paragraph, substitute: 19 (b) if paragraph (a) does not apply and the property was acquired 20 by the provider--an amount equal to the lesser of: 21 (i) the arm's length price in respect of the acquisition of the 22 recipient's property by the provider; or 23 (ii) the notional value of the recipient's property at the 24 provision time; or 25 302 Paragraph 42(1)(c) 26 Omit "recipients property", substitute "recipient's property" 27 303 Subsection 42(1) 28 Omit "recipients contribution", substitute "recipient's contribution". 90 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] Other amend ments Part 4 1 304 After subsection 148(2) 2 Insert: 3 (2A) Subsection (2) does not apply if the employee would be entitled to 4 a deduction under Division 30 (Gifts or contributions) of the 5 Income Tax Assessment Act 1997 if the employee, rather than the 6 provider, provided the benefit to the recipient. 7 305 Application of item 304 8 The amendment made by item 304 of this Schedule applies in relation 9 to: 10 (a) the FBT year starting on 1 April 2008; and 11 (b) later FBT years. 12 Income Tax Assessment Act 1936 13 306 Subsection 6(1) (at the end of the definition of full 14 self-assessment taxpayer) 15 Add: 16 ; (g) the trustee of an FHSA trust in relation to the current year. 17 307 Application of item 306 18 The amendment made by item 306 of this Schedule applies in relation 19 to: 20 (a) the 2009-10 year of income; and 21 (b) later years of income. 22 308 Subsection 16(5BA) 23 Repeal the subsection. 24 309 Subsection 16(5C) 25 Omit ", the Secretary to the Department of Science". 26 310 Paragraph 16(5C)(a) 27 Omit "or (5BA)". 28 311 Subsection 82KZL(1) (at the end of paragraphs (a) and 29 (b) of the definition of excluded expenditure) Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 91 [Page Break] Part 4 Other amendments 1 Add "or". 2 312 At the end of paragraph 82KZL(2)(a) 3 Add "and". 4 313 Paragraph 99H(1)(c) 5 Omit "subsection 12-400(4)", substitute "subsection 12-405(4)". 6 314 At the end of subsection 128W(1) 7 Add: 8 Note: For provisions about collection and recovery of mining withholding 9 tax and other amounts, see Part 4-15 in Schedule 1 to the Taxation 10 Administration Act 1953. 11 315 Subsections 128W(2), (3) and (7) 12 Repeal the subsections. 13 316 Application of item 315 14 The amendment made by item 315 of this Schedule does not apply in 15 relation to any mining withholding tax that became due and payable 16 before 1 July 2000. 17 317 Paragraph 161AA(d) 18 Omit "fund that is an eligible superannuation fund (as defined in 19 section 267)", substitute "superannuation fund". 20 318 Application of item 317 21 The amendment made by item 317 of this Schedule applies in relation 22 to: 23 (a) the 2009-10 year of income; and 24 (b) later years of income. 25 Income Tax Assessment Act 1997 26 319 Subsection 30-25(1) (table item 2.1.7) 27 Omit "declared by a signed instrument to be a technical and further 28 education institution within the meaning of the Employment, Education 29 and Training Act 1988", substitute "determined to be a technical and 30 further education institution under the Student Assistance Act 1973". 92 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] Other amend ments Part 4 1 320 Subsection 30-86(4) 2 Omit "declaration", substitute "recognition". 3 321 Subsection 40-425(2) 4 Omit ", except a * horticultural plant", substitute "(except a 5 * horticultural plant)". 6 322 Paragraphs 54-10(1)(e) and (1A)(e) 7 Omit "State insurers", substitute "* State insurers". 8 323 Subsection 54-10(2) 9 Repeal the subsection. 10 324 Subsection 124-10(3) (note 2) 11 After "Subdivision 124-B (about compulsory acquisition, loss or 12 destruction),", insert "Subdivision 124-C (about statutory licences),". 13 325 Subsection 124-140(1) (note) 14 After "Note", insert "1". 15 326 At the end of subsection 124-140(1) 16 Add: 17 Note 2: Subdivision 124-C of the Income Tax (Transitional Provisions) Act 18 1997 modifies this roll-over for certain water-related licences. 19 327 Subparagraphs 130-90(3)(a)(i) and (ii) 20 Repeal the subparagraphs, substitute: 21 (i) in any case--under an *employee share scheme; or 22 (ii) in the case of a share--as a result of exercising a right 23 acquired under an employee share scheme; or 24 (iii) in the case of a share--in satisfaction of a beneficial 25 interest that was the result of exercising a right acquired 26 under an employee share scheme; 27 328 Paragraph 130-90(3)(c) 28 After "exercising a right,", insert "or in satisfaction of a beneficial 29 interest that was the result of exercising a right--". 30 329 Subsection 149-30(1) (second sentence) Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 93 [Page Break] Part 4 Other amendments 1 Repeal the sentence. 2 330 After subsection 149-30(1) 3 Insert: 4 (1A) Also, Part 3-1 and this Part (except this Division) apply to the asset 5 as if the entity had acquired it at that earliest time. 6 331 Subsection 149-30(2) 7 Omit "subsection (1) applies", substitute "subsections (1) and (1A) 8 apply". 9 332 After subsection 152-110(1) 10 Insert: 11 (1A) For the purposes of paragraphs (1)(b) and (c), disregard subsection 12 149-30(1A) (which applies if an asset stops being a pre-CGT 13 asset). 14 333 Paragraph 152-125(1)(a) 15 Omit "of the following applies", substitute "or more of the following 16 apply". 17 334 Subparagraph 152-125(1)(a)(iii) 18 Omit "and". 19 335 At the end of paragraph 152-125(1)(a) 20 Add: 21 (iv) subparagraph (i) of this paragraph would have applied 22 to an amount (the exempt amount) if subsection 23 149-30(1A) and section 149-35 had not applied to the 24 relevant asset; and 25 336 Application of items 332 to 335 26 The amendments made by items 332 to 335 of this Schedule apply in 27 relation to a payment made by a company or trust on or after the 28 commencement of this item. 29 337 Paragraph 855-20(a) 94 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 [Page Break] Other amend ments Part 4 1 After "Australia", insert "(including a lease of land, if the land is 2 situated in Australia)". 3 338 Application of item 337 4 (1) The amendment made by item 337 of this Schedule applies in relation 5 to CGT events happening on or after 20 May 2009. 6 (2) Furthermore, the amendment is to be disregarded for the purposes of 7 interpreting Subdivision 855-A of the Income Tax Assessment Act 1997 8 as in force before the commencement of this item. 9 339 Subsection 960-190(1) (table item 3) 10 Omit "* partnership", substitute "partnership". 11 340 Subsection 995-1(1) (paragraphs (a) and (b) of the 12 definition of legal personal representative) 13 Omit "a person", substitute "an individual". 14 341 Subsection 995-1(1) 15 Insert: 16 State insurer means a body that carries on State insurance (within 17 the meaning of paragraph 51(xiv) of the Constitution). 18 International Tax Agreements Act 1953 19 342 Subsections 16(4) and (5) 20 Repeal the subsections, substitute: 21 (4) A rebate, or the sum of the rebates, a taxpayer is entitled to under 22 subsection (2), in respect of income of a year of income, must not 23 exceed the amount of Australian tax payable in respect of the 24 taxpayer's taxable income of that year after all other rebates of, and 25 deductions from, that tax have been taken into account. 26 Tax Laws Amendment (2007 Measures No. 5) Act 2007 27 343 Item 14 of Schedule 7 28 After "Schedule", insert "(other than item 13)". 29 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009 95 [Page Break] Part 5 Transitional provision 1 Part 5--Transitional provision 2 344 Transitional provision--technical and further education 3 institutions 4 (1) An institution that, just before the commencement of item 319 of this 5 Schedule, was covered by item 2.1.7 of the table in subsection 30-25(1) 6 of the Income Tax Assessment Act 1997 is taken, for the purposes of that 7 item in that table, to have been determined by the Education Minister to 8 be a technical and further education institution under the Student 9 Assistance Act 1973 at that commencement. 10 (2) To avoid doubt, subitem (1) does not prevent the Education Minister 11 from revoking that determination. 96 Tax Laws Amendment (2009 Measures No. 4) Bill 2009 No. , 2009