TAX LAWS AMENDMENT (2009 MEASURES NO. 5) BILL 2009

i Tax Laws Amendment (2009 Measures No. 5) Bill 2009 No. , 2009

Contents

1 Short

title

...........................................................................................

2 Commencement

.................................................................................

3 Schedule(s)

........................................................................................

Schedule 1--GST and representatives of incapacitated entities

Part 1--Amendments commencing on 1 July 2000

A New Tax System (Goods and Services Tax) Act 1999

Part 2--Amendment commencing on 1 July 2006

Fuel Tax Act 2006

Part 3--Amendments commencing on Royal Assent

A New Tax System (Goods and Services Tax) Act 1999

Fuel Tax Act 2006

Taxation Administration Act 1953

Part 4--Transitional provisions

Schedule 2--Taxation of financial arrangements

Part 1--Amendment commencing on Royal Assent

Taxation Administration Act 1953

Part 2--Amendment commencing immediately after Royal

Assent

Taxation Administration Act 1953

Schedule 3--Helping Children with Autism package

Income Tax Assessment Act 1997

Schedule 4--Continence Aids Payment Scheme

Income Tax Assessment Act 1997

Schedule 5--Exempting Commonwealth Government

Securities from interest withholding tax

Income Tax Assessment Act 1936

Schedule 6--2009 Victorian Bushfire Appeal Trust Account

Part 1--Main provisions

Tax Laws Amendment (2009 Measures No. 5) Bill 2009 No. , 2009 1

A Bill for an Act to amend the law relating to

taxation, and for other purposes

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Tax Laws Amendment (2009

Measures No. 5) Act 2009.

2 Commencement

(1) Each provision of this Act specified in column 1 of the table

commences, or is taken to have commenced, in accordance with

column 2 of the table. Any other statement in column 2 has effect

according to its terms.

2 Tax Laws Amendment (2009 Measures No. 5) Bill 2009 No. , 2009

Commencement information

Column 1

Column 2

Column 3

Provision(s) Commencement

Date/Details

1. Sections 1 to 3

and anything in

this Act not

elsewhere covered

by this table

The day this Act receives the Royal Assent.

2. Schedule 1,

Part 1

1 July 2000.

1 July 2000

3. Schedule 1,

Part 2

1 July 2006.

1 July 2006

4. Schedule 1,

Parts 3 and 4

The day this Act receives the Royal Assent.

5. Schedule 2,

Part 1

The day this Act receives the Royal Assent.

6. Schedule 2,

Part 2

Immediately after the commencement of the

provision(s) covered by table item 5.

7. Schedule 3

The day this Act receives the Royal Assent.

8. Schedule 4

1 July 2010.

1 July 2010

9. Schedule 5

The day after this Act receives the Royal

Assent.

10. Schedule 6,

Part 1

The day this Act receives the Royal Assent.

11. Schedule 6,

item 5

The day this Act receives the Royal Assent.

12. Schedule 6,

items 6 and 7

30 June 2016.

30 June 2016

Note:

This table relates only to the provisions of this Act as originally

passed by both Houses of the Parliament and assented to. It will not be

expanded to deal with provisions inserted in this Act after assent.

(2) Column 3 of the table contains additional information that is not

part of this Act. Information in this column may be added to or

edited in any published version of this Act.

3 Schedule(s)

Each Act that is specified in a Schedule to this Act is amended or

repealed as set out in the applicable items in the Schedule

Schedule 1 GST and representatives of incapacitated entities

Part 1 Amendments commencing on 1 July 2000

4 Tax Laws Amendment (2009 Measures No. 5) Bill 2009 No. , 2009

Schedule 1--GST and representatives of

incapacitated entities

Part 1--Amendments commencing on 1 July 2000

A New Tax System (Goods and Services Tax) Act 1999

1 Section 9-69 (after table item 4A)

Insert:

Representatives of incapacitated entities

Division 58

2 Section 11-99 (after table item 10)

Insert:

10A

Representatives of incapacitated entities

Division 58

3 Section 13-99 (after table item 3)

Insert:

Representatives of incapacitated entities

Division 58

4 Section 15-99 (after table item 3)

Insert:

Representatives of incapacitated entities

Division 58

5 Section 17-99 (table item 10)

Omit "Division 147", substitute "Divisions 58 and 147".

6 Section 21-99 (after table item 2)

Insert:

Representatives of incapacitated entities

Division 58

7 Section 29-39 (after table item 10)

Insert:

Representatives of incapacitated entities

Division 58

8 After Division 57 of Part 4-1

Insert:

GST and representatives of incapacitated entities Schedule 1

Amendments commencing on 1 July 2000 Part 1

Tax Laws Amendment (2009 Measures No. 5) Bill 2009 No. , 2009 5

Division 58--Representatives of incapacitated entities

58-1 What this Division is about

This Division sets out how to ascribe activities of a representative

of an incapacitated entity between the representative and the

incapacitated entity for GST purposes.

In particular, supplies, acquisitions and importations, and

associated acts and omissions, by the representative are, in most

cases, treated as having been by the incapacitated entity. This

ensures that a transaction by the representative has the same

consequences under the GST law as if the incapacitated entity had

no representative.

However, in most cases, GST-related liabilities and entitlements

are allocated to the representative for transactions that are within

the scope of the representative's responsibility or authority.

58-5 General principle for the relationship between incapacitated

entities and their representatives

(1) Subject to this Division, any supply, acquisition or importation by

an entity in the capacity of a

representative of another entity that

is an

incapacitated entity is taken to be a supply, acquisition or

importation by the other entity.

(2) Subject to this Division, any other act, or any omission, of an entity

in the capacity of a

representative of another entity that is an

incapacitated entity is taken to be an act or omission of the other

entity, but only for the purposes of determining, for the purposes of

the

GST law:

(a) whether a supply or importation is a

taxable supply or

taxable importation, or the amount of GST payable on the

supply or importation; or

(b) whether an acquisition or importation is a

creditable

acquisition or

creditable importation, or the amount of the

input tax credit for the acquisition or importation; or

Schedule 1 GST and representatives of incapacitated entities

Part 1 Amendments commencing on 1 July 2000

6 Tax Laws Amendment (2009 Measures No. 5) Bill 2009 No. , 2009

(c)

whether

adjustment arises in relation to a supply,

acquisition or importation, or the amount of such an

adjustment.

(3) To avoid doubt, if the other entity ceases to be an

incapacitated

entity, this section continues to apply in relation to the supply,

acquisition or importation, or to the act or omission, after the other

entity ceases to be an incapacitated entity.

(4) To avoid doubt, to the extent that an act or omission referred to in

subsection (2) relates to deciding to

account on a cash basis, that

subsection does not apply for the purposes of determining, for the

purposes of the

GST law, whether an

adjustment arises under

Division 21 in relation to a supply or acquisition.

58-10 Circumstances in which representatives have GST-related

liabilities and entitlements

General rule

(1)

representative of an

incapacitated entity:

(a) is liable to pay any GST that the incapacitated entity would,

but for this section or section 48-40, be liable to pay on a

taxable supply or a

taxable importation; and

(b) is entitled to any input tax credit that the incapacitated entity

would, but for this section or section 48-45, be entitled to for

creditable acquisition or a

creditable importation; and

(c)

has

any

adjustment that the incapacitated entity would, but

for this section or section 48-50, have;

to the extent that the making of the supply, importation or

acquisition to which the GST, input tax credit or adjustment relates

is within the scope of the representative's responsibility or

authority for managing the incapacitated entity's affairs.

Exceptions for certain taxable supplies

(2) This section does not apply to the GST payable on a

taxable

supply to the extent that one or more of the following apply:

(a)

the

incapacitated entity received the

consideration for the

supply before the

representative became a representative of

the incapacitated entity;

GST and representatives of incapacitated entities Schedule 1

Amendments commencing on 1 July 2000 Part 1

Tax Laws Amendment (2009 Measures No. 5) Bill 2009 No. , 2009 7

(b) if, under Division 83 or 84, the GST is payable by the

recipient of the supply--the incapacitated entity provided the

consideration for the supply before the representative became

a representative of the incapacitated entity;

(c)

if:

(i) the supply is a supply for which a

voucher to which

Division 100 applies is redeemed; and

(ii) the incapacitated entity supplied the voucher before the

representative became a representative of the

incapacitated entity;

the consideration for the supply referred to in

subparagraph (i) does not exceed the consideration provided

for the incapacitated entity's supply of the voucher.

Exception for certain creditable acquisitions

(3) This section does not apply to an input tax credit for a

creditable

acquisition to the extent that the

incapacitated entity provided the

consideration for the acquisition before the

representative

became a representative of the incapacitated entity.

Exceptions for certain adjustments

(4) This section does not apply to an

adjustment to the extent that one

or more of the following apply:

(a) if the adjustment relates to a supply--the

incapacitated

entity received the

consideration for the supply before the

representative became a representative of the incapacitated

entity;

(b) if the adjustment relates to an acquisition--the incapacitated

entity provided the consideration for the supply before the

representative became a representative of the incapacitated

entity;

applying to the representative in the capacity of a

representative of the incapacitated entity.

Incapacitated entity not liable to pay GST etc.

(5)

incapacitated entity or, if the incapacitated entity is a

member

of a

GST group, the

representative member of that group:

Schedule 1 GST and representatives of incapacitated entities

Part 1 Amendments commencing on 1 July 2000

8 Tax Laws Amendment (2009 Measures No. 5) Bill 2009 No. , 2009

(a) is not liable to pay the GST on a

taxable supply or a

taxable

importation to the extent that a

representative of the

incapacitated entity is liable under this section to pay the

GST on the supply or importation; and

(b) is not entitled to the input tax credit for a

creditable

acquisition or a

creditable importation to the extent that a

representative of the incapacitated entity is entitled under this

section to the input tax credit for the acquisition or

importation; and

adjustment to the extent that a

representative of the incapacitated entity has the adjustment

under this section.

Other

(6) This section has effect despite sections 9-40, 11-20, 13-15, 15-15,

83-5 and 84-10 and subsections 48-40(1), 48-45(1) and 48-50(1)

(which are about who is liable for GST, and who is entitled to input

tax credits).

58-15 Adjustments for bad debts

(1) For the purposes of determining whether an

adjustment arises

under section 21-5 or 21-15 for the whole or a part of a debt

relating to a

taxable supply or

creditable acquisition for which a

representative of an

incapacitated entity is liable to pay GST, or

is entitled to an input tax credit, under section 58-10:

(a) the adjustment cannot arise if, when the whole or part of the

debt is written off, or has been

overdue for 12 months, the

representative

accounts on a cash basis; but

(b) it does not matter whether the incapacitated entity accounts

on a cash basis at that or any other time.

(2) This section has effect despite subsections 21-5(2) and 21-15(2)

(which preclude adjustments for bad debts when accounting on a

cash basis).

58-40 Effect on attribution rules of not accounting on a cash basis

(1)

If:

(a)

representative of an

incapacitated entity does not

account

on a cash basis; and

GST and representatives of incapacitated entities Schedule 1

Amendments commencing on 1 July 2000 Part 1

Tax Laws Amendment (2009 Measures No. 5) Bill 2009 No. , 2009 9

(b) because of section 58-10, all or part of the amount of GST

payable on a

taxable supply is payable by the representative,

or the representative is entitled to all or part of the input tax

credit for a

creditable acquisition;

then, to the extent that, but for this section, the GST or input tax

credit would be attributable to a tax period that ended before the

representative became a representative of the incapacitated entity,

the GST or input tax credit is instead attributable to the first tax

period applying to the representative in that capacity.

(2) This section has effect despite sections 29-5 and 29-10 (which are

about attribution of GST on taxable supplies and of input tax

credits for creditable acquisitions).

9 Section 147-20 (heading)

Repeal the heading, substitute:

147-20 Effect of representative failing to notify the Commissioner of

certain adjustments

10 Subsection 147-20(1)

Repeal the subsection, substitute:

(1)

If:

(a)

increasing adjustment relates to a supply, acquisition or

importation that an

incapacitated entity made before a

representative of the incapacitated entity was appointed; and

(b) the adjustment arises after that appointment; and

notice that:

(i) states that the adjustment has arisen in these

circumstances; and

(ii) specifies the amount of the adjustment;

the adjustment is to be treated as if:

(d) the representative had the adjustment; and

(e) the incapacitated entity did not have the adjustment.

GST and representatives of incapacitated entities Schedule 1

Amendments commencing on Royal Assent Part 3

Tax Laws Amendment (2009 Measures No. 5) Bill 2009 No. , 2009 11

Part 3--Amendments commencing on Royal Assent

A New Tax System (Goods and Services Tax) Act 1999

12 Section 17-99 (table item 10)

Omit "Divisions 58 and 147", substitute "Division 58".

13 Section 23-99 (table item 1)

Omit "Division 147", substitute "Division 58".

14 Section 25-99 (table item 2)

Omit "Division 147", substitute "Division 58".

15 After section 27-38

Insert:

27-39 Tax periods of incapacitated entities

(1) If an entity becomes an

incapacitated entity, the entity's tax period

at the time is taken to have ended at the end of the day before the

entity became incapacitated.

(2) If a tax period (the first tax period) ends on a particular day

because of subsection (1), the next tax period starts on the day after

that day and ends when the first tax period would have ended but

for that subsection.

16 Subsection 27-40(1)

Repeal the subsection, substitute:

(1)

If:

(a) an individual dies; or

(b) another entity for any reason ceases to exist;

the individual's or entity's tax period at the time is taken to have

ceased at the end of the day before the death or cessation.

17 Section 27-99 (table item 1AA)

Repeal the item, substitute:

1AA GST

groups

Division

Schedule 1 GST and representatives of incapacitated entities

Part 3 Amendments commencing on Royal Assent

12 Tax Laws Amendment (2009 Measures No. 5) Bill 2009 No. , 2009

1AB

Payment of GST by instalments

Division 162

18 Section 27-99 (table item 1A)

Omit "Division 147", substitute "Division 58".

19 Section 31-99 (after table item 4A)

Insert:

Representatives of incapacitated entities

Division 58

20 Section 37-1 (table item 25)

Omit "Division 147", substitute "Division 58".

21 After subsection 48-70(1)

Insert:

(1A) The Commissioner must revoke the approval of one of the

members of a

GST group if:

(a) the member becomes an

incapacitated entity; and

(b)

the

representative of the incapacitated entity applies to the

Commissioner in the

approved form for the member's

approval to be revoked.

22 After section 48-70

Insert:

48-72 Effect of representative member becoming an incapacitated

entity

(1)

The

representative member of a

GST group ceases to be the

representative member of the group if the representative member

becomes an

incapacitated entity.

(2) Subsection (1) does not apply if, when the

representative member

of the group becomes an

incapacitated entity, all the other

members of the group are incapacitated entities.

(3)

The

representative member of a

GST group ceases to be the

representative member of the group if:

(a)

all

the

members of the group are

incapacitated entities; and

GST and representatives of incapacitated entities Schedule 1

Amendments commencing on Royal Assent Part 3

Tax Laws Amendment (2009 Measures No. 5) Bill 2009 No. , 2009 13

(b) a member of the group who is not the representative member

ceases to be an incapacitated entity.

(4)

member of a

GST group ceases, because of this section, to be

the

representative member of the group, the Commissioner must

approve another member of the group to replace that member as

the representative member of the group if:

(a) any member of the group applies to the Commissioner in the

approved form for that other member to be so approved; and

(b) that other member is not an

incapacitated entity.

48-73 Tax periods of GST groups with incapacitated members

(1)

member of a

GST group becomes an

incapacitated entity,

the

representative member of that group may, by notifying the

Commissioner in the

approved form, elect for the tax period that

applies at the time to the members of the group to end at the same

time as the incapacitated entity's tax period ends under subsection

27-39(1).

Note 1:

Section 31-10 provides for when a GST return must be given to the

Commissioner for a tax period other than a quarterly tax period.

Note 2:

If the representative member does not make an election under this

section when a member of the group becomes an incapacitated entity,

it is likely that the member would no longer satisfy paragraph

48-10(1)(d), and that the Commissioner would revoke its approval as a

member of the group under subsection 48-70(2).

(2) If a tax period (the first tax period) ends on a particular day

because of subsection (1), the next tax period starts on the day after

that day and ends when the first tax period would have ended but

for that subsection.

(3) This section has effect despite Division 27 (which is about how to

work out the tax periods that apply).

23 Subsection 48-75(2)

Repeal the subsection, substitute:

(2) The Commissioner must revoke the approval of a

GST group if:

(a) the Commissioner is satisfied that none of its

members, or

only one of its members,

satisfies the membership

requirements for that GST group; or

(b) the Commissioner is satisfied that:

Schedule 1 GST and representatives of incapacitated entities

Part 3 Amendments commencing on Royal Assent

14 Tax Laws Amendment (2009 Measures No. 5) Bill 2009 No. , 2009

(i) a member of the GST group has ceased, because of

section 48-72, to be the

representative member of the

group; and

(ii) in the period of 21 days since the cessation, the

Commissioner has not been required under subsection

48-72(4) to approve another member of the group to

replace that member as the representative member of the

group.

Note:

Revoking under this subsection the approval of a GST group is a

reviewable GST decision (see Subdivision 110-F in Schedule 1 to the

Taxation Administration Act 1953).

24 After section 58-15

Insert:

58-20 Representatives are required to be registered

(1)

representative of an

incapacitated entity is required to be

registered in that capacity if the incapacitated entity is

registered

required to be registered.

(2) This section has effect despite section 23-5 (which is about who is

required to be registered).

58-25 Cancellation of registration of a representative

(1) The Commissioner must cancel the

registration of a

representative of an

incapacitated entity if the Commissioner is

satisfied that the representative is not

required to be registered in

that capacity.

Note:

Cancelling the registration of a representative under this subsection is

a reviewable GST decision (see Subdivision 110-F in Schedule 1 to

the Taxation Administration Act 1953).

(2) The Commissioner must notify the

representative of the

cancellation.

(3) Sections 25-50 and 25-55 do not apply to the cancellation of the

registration of a

representative of an

incapacitated entity.

GST and representatives of incapacitated entities Schedule 1

Amendments commencing on Royal Assent Part 3

Tax Laws Amendment (2009 Measures No. 5) Bill 2009 No. , 2009 15

58-30 Notice of cessation of representation

representative who ceases to be a representative of an

incapacitated entity must notify the Commissioner of that

cessation, in the

approved form, within 21 days after so ceasing.

58-35 Tax periods of representatives

(1)

representative of an

incapacitated entity is

required to be

registered in that capacity, the tax periods applying to the

representative in that capacity are the same tax periods that apply

to the incapacitated entity.

(2) This section has effect despite Division 27 (which is about how to

work out the tax periods that apply).

25 At the end of Division 58

Add:

58-45 GST returns for representatives of incapacitated entities

(1) If an individual is appointed as a

representative of 2 or more

incapacitated entities, the individual may give to the

Commissioner one

GST return for a tax period in respect of the

entities if the entities are

members of the same

GST group.

(2) This section has effect despite section 31-5 (which is about who

must give GST returns).

58-50 Representatives to give GST returns for incapacitated entities

(1)

representative of an

incapacitated entity must give to the

Commissioner a

GST return for a tax period applying to the

incapacitated entity if:

(a) the incapacitated entity has failed to give to the

Commissioner a GST return for a tax period; and

(b) the Commissioner, in writing, directs the representative to

give to the Commissioner a GST return.

Note:

Deciding to direct a representative of an incapacitated entity to give to

the Commissioner a GST return is a reviewable GST decision (see

Subdivision 110-F in Schedule 1 to the Taxation Administration Act

1953).

Schedule 1 GST and representatives of incapacitated entities

Part 3 Amendments commencing on Royal Assent

16 Tax Laws Amendment (2009 Measures No. 5) Bill 2009 No. , 2009

(2) The tax period may be any tax period applying to the

incapacitated entity, including:

(a) a tax period that ends before the

representative became a

representative of the incapacitated entity; and

(b) a tax period that starts after the representative became a

representative of the incapacitated entity.

(3)

The

GST return by the

representative:

(a) must be in accordance with the requirements of Division 31

as they would apply in relation to the

incapacitated entity

except to the extent that the direction under paragraph (1)(b)

modifies those requirements; and

(b) must be given to the Commissioner within the period

specified in the direction.

(4) Without limiting the matters that the Commissioner may take into

account in deciding whether to give a direction under

paragraph (1)(b), the Commissioner must take into account:

(a) the likelihood of a dividend to unsecured creditors of the

incapacitated entity being declared, and the likely amounts

of any such dividend; and

(b) the likelihood that, if the Commissioner were given the

GST

return, it would reveal a liability to pay an amount to the

Commissioner under the

GST law; and

possible to prepare the GST return; and

(d) the likelihood that the cost to the

representative of preparing

the GST return would be covered by the incapacitated

entity's assets without resulting in an unreasonable impact on

the other creditors of the incapacitated entity.

(5)

The

incapacitated entity is taken to have complied with

Division 31 in relation to giving a

GST return for a tax period if

the

representative gives to the Commissioner a return for the tax

period in accordance with this section.

(6) A direction under paragraph (1)(b) is not a legislative instrument.

(7) This section has effect despite section 31-5 (which is about who

must give GST returns).

GST and representatives of incapacitated entities Schedule 1

Amendments commencing on Royal Assent Part 3

Tax Laws Amendment (2009 Measures No. 5) Bill 2009 No. , 2009 17

58-55 Incapacitated entities not required to give GST returns in

some cases

(1)

incapacitated entity is not required to give a

GST return for a

tax period if:

(a)

the

entity's

net amount for the tax period is zero; and

(b) the entity does not have an

increasing adjustment that is

attributable to the tax period; and

period.

(2) This section has effect despite section 31-5 (which is about who

must give GST returns).

58-60 Representative to notify Commissioner of certain liabilities

etc.

(1)

representative of an

incapacitated entity must notify the

Commissioner, in the

approved form, of an amount of GST for

which the entity is liable, or an

increasing adjustment that the

entity has, if:

(a) the representative becomes aware, or could reasonably be

expected to have become aware, of the amount of GST, or

the adjustment; and

(b) the amount of GST, or the adjustment, has not been taken

into account in any

GST return that has been given to the

Commissioner; and

amount of GST, or the adjustment, under this section.

Note:

Section 286-75 in Schedule 1 to the Taxation Administration Act 1953

provides an administrative penalty for breach of this subsection.

(2) The notification must be given to the Commissioner before the day

on which the

representative declares a dividend to unsecured

creditors of the

incapacitated entity.

(3) This section does not apply if the

representative is a representative

of a kind that does not have the capacity to declare dividends to

unsecured creditors of the

incapacitated entity.

(4) This section does not apply in circumstances determined by the

Commissioner under subsection (5).

Schedule 1 GST and representatives of incapacitated entities

Part 3 Amendments commencing on Royal Assent

18 Tax Laws Amendment (2009 Measures No. 5) Bill 2009 No. , 2009

(5) The Commissioner may, by legislative instrument, determine

circumstances in which this section does not apply.

58-65 Money available to meet representative's liabilities

representative of an

incapacitated entity who is liable to pay an

amount because of this Division is authorised and required to apply

any money which the representative receives in his or her capacity

as that representative in order to pay the liability.

58-70 Protection for actions of representative

representative of an

incapacitated entity is not liable to civil or

criminal proceedings in relation to an act done, or omitted to be

done, in good faith, in the performance or purported performance,

or exercise or purported exercise, of the representative's duties or

powers under, or in relation to, the

GST law.

26 Subsection 129-20(1)

After "under section", insert "27-39 or".

27 Subsection 129-20(1) (note)

Before "Section 27-40", insert "Section 27-39 deals with an

incapacitated entity's tax periods."

28 Subsection 131-60(3)

After "under section", insert "27-39 or".

29 Before paragraph 138-10(1)(a)

Insert:

(aa) if you are an

incapacitated entity--your tax period under

section 27-39; or

30 Division 147

Repeal the Division.

31 Subsection 151-25(1)

After "at the end of your", insert "tax period under subsection 27-39(1),

at the end of your".

GST and representatives of incapacitated entities Schedule 1

Amendments commencing on Royal Assent Part 3

Tax Laws Amendment (2009 Measures No. 5) Bill 2009 No. , 2009 19

32 Subsection 151-55(3)

Repeal the subsection, substitute:

(3) However, this section does not affect the application of:

(a) section 27-39; or

(b) if an entity for any reason ceases to exist--section 27-40.

33 Section 151-60 (heading)

Repeal the heading, substitute:

151-60 The effect of incapacitation or cessation

34 Subsection 151-60(1)

Repeal the subsection, substitute:

(1) If an entity becomes an

incapacitated entity, or the entity for any

reason ceases to exist, the entity must give the

GST return, for the

annual tax period that ends as a result, to the Commissioner:

(a) on or before the 21st day of the month following the end of

the annual tax period; or

(b) within such further period as the Commissioner allows.

35 After section 156-15

Insert:

156-17 Application of Division 58 to progressive or periodic supplies

and acquisitions

(1) A supply that is made:

(a) for a period or on a progressive basis; and

(b)

for

consideration that is to be provided on a progressive or

periodic basis;

is treated, for the purposes of Division 58 (which is about

representatives of incapacitated entities), as if each progressive or

periodic component of the supply were a separate supply.

(2) An acquisition that is made:

(a) for a period or on a progressive basis; and

(b)

for

consideration that is to be provided on a progressive or

periodic basis;

Schedule 1 GST and representatives of incapacitated entities

Part 3 Amendments commencing on Royal Assent

20 Tax Laws Amendment (2009 Measures No. 5) Bill 2009 No. , 2009

is treated, for the purposes of Division 58 (which is about

representatives of incapacitated entities), as if each progressive or

periodic component of the acquisition were a separate acquisition.

36 Section 156-25

Omit "section 156-15", substitute "sections 156-15 and 156-17".

37 Subsection 162-30(1)

After "at the end of your", insert "tax period under subsection 27-39(1),

at the end of your".

38 Subsection 162-85(4)

Repeal the subsection, substitute:

(4) However, this section does not affect the application of:

(a) section 27-39; or

(b)

GST instalment payer for any reason ceases to exist--

section 27-40.

39 Section 162-90 (heading)

Repeal the heading, substitute:

162-90 The effect of incapacitation or cessation

40 Subsection 162-90(1)

Repeal the subsection, substitute:

(1)

GST instalment payer becomes an

incapacitated entity, or for

any reason ceases to exist, the GST instalment payer must give the

GST return, for the

instalment tax period that ends as a result, to

the Commissioner:

(a) on or before the 21st day of the month following the end of

the instalment tax period; or

(b) within such further period as the Commissioner allows.

41 Section 195-1 (at the end of the definition of GST return)

Add ", and includes a return given in accordance with section 58-50 of

this Act".

GST and representatives of incapacitated entities Schedule 1

Amendments commencing on Royal Assent Part 3

Tax Laws Amendment (2009 Measures No. 5) Bill 2009 No. , 2009 21

42 Section 195-1 (after paragraph (c) of the definition of

representative)

Insert:

(ca) a controller (within the meaning of section 9 of the

Corporations Act 2001); or

43 Section 195-1 (at the end of the definition of

representative member)

Add "or subsection 48-72(4)".

44 Section 195-1 (definition of required to be registered)

Omit "144-5 and 147-5", substitute "58-20 and 144-5".

45 Section 195-1 (definition of tax period)

Omit "57-35, 147-25 or 151-40", substitute "48-73, 57-35, 58-35 or

151-40".

Fuel Tax Act 2006

46 Section 70-25

Omit "Divisions 58 and 147", substitute "Division 58".

Taxation Administration Act 1953

47 Subsection 110-50(2) in Schedule 1 (after table item 49)

Insert:

49A

cancelling the registration of a

representative of

incapacitated entity

subsection 58-25(1)

49B

deciding to direct a

representative of an

incapacitated entity to give to the Commissioner a

GST return

paragraph

58-50(1)(b)

48 Subsection 110-50(2) in Schedule 1 (table item 54)

Repeal the item.

49 Subsections 444-70(1) and (2) in Schedule 1

Repeal the subsections, substitute:

Schedule 1 GST and representatives of incapacitated entities

Part 3 Amendments commencing on Royal Assent

22 Tax Laws Amendment (2009 Measures No. 5) Bill 2009 No. , 2009

(1)

If:

(a) there are, at the same time, 2 or more

representatives of the

same

incapacitated entity; and

(b) the representatives were not appointed to act in different

capacities as representatives;

the representatives are jointly and severally liable to pay any

amount that is payable under an

indirect tax law by any of the

representatives in relation to that same incapacitated entity.

(2)

If:

(a) there are, at the same time, 2 or more

representatives of the

same

incapacitated entity; and

(b) the representatives were not appointed to act in different

capacities as representatives;

any offence against an

indirect tax law that is committed by one of

the representatives is taken to have been committed by each of the

representatives.

GST and representatives of incapacitated entities Schedule 1

Transitional provisions Part 4

Tax Laws Amendment (2009 Measures No. 5) Bill 2009 No. , 2009 23

Part 4--Transitional provisions

50 Application of Division 72

(1)

Division 72 of the A New Tax System (Goods and Services Tax) Act

1999 does not apply in relation to a supply or acquisition that an

incapacitated entity made to or from an associate of the incapacitated

entity if:

(a) making the supply or acquisition was within the scope of the

representative's responsibility or authority for managing the

incapacitated entity's affairs; and

(b) the supply or acquisition was made before the day this Act

received the Royal Assent.

(2)

Division 72 of that Act does not apply in relation to a supply or

acquisition that an incapacitated entity made to or from an associate of

the incapacitated entity if:

(a) making the supply or acquisition was within the scope of the

representative's responsibility or authority for managing the

incapacitated entity's affairs; and

(b) the incapacitated entity is being wound up under a members'

voluntary winding up (within the meaning of the

Corporations Act 2001); and

of the Corporations Act 2001) was passed before the day on

which the Bill that became this Act was introduced into the

House of Representatives.

51 Cancellations of registration under section 147-10

(1) If:

(a) before the commencement of this item, the Commissioner

cancelled the registration of an incapacitated entity; and

(b) but for the enactment of this Schedule, the cancellation

would have continued to have effect under section 147-10 of

the A New Tax System (Goods and Services Tax) Act 1999;

the cancellation continues to have effect after that commencement as a

cancellation under section 58-25 of that Act as inserted by this

Schedule.

(2) If:

Schedule 1 GST and representatives of incapacitated entities

Part 4 Transitional provisions

24 Tax Laws Amendment (2009 Measures No. 5) Bill 2009 No. , 2009

(a) before the commencement of this item, an objection had been

made under section 110-50 in Schedule 1 to the Taxation

Administration Act 1953 against a decision under

section 147-10 of the A New Tax System (Goods and Services

Tax) Act 1999; and

(b) as at that commencement, the objection had not been finally

determined;

Part IVC of the Taxation Administration Act 1953 continues to apply

after that commencement in relation to the objection as if the decision

were a decision under section 58-25 of the A New Tax System (Goods

and Services Tax) Act 1999 as inserted by this Schedule.

52 Notices under section 147-15

If:

(a) before this Act received the Royal Assent, a representative

who ceased to be a representative of an incapacitated entity

notified the Commissioner of that cessation; and

(b) but for the enactment of this Schedule, the notice would have

met the requirements of section 147-15 of the A New Tax

System (Goods and Services Tax) Act 1999;

the notice has effect as a notice under section 58-30 of that Act as

inserted by this Schedule.

53 Time limit on recovery by the Commissioner

If:

(a) because of the amendments made by this Schedule, you are

liable to pay a net amount, net fuel amount or amount of

indirect tax that you would not have been liable to pay if the

amendments had not been made; and

(b) the net amount, net fuel amount or amount of indirect tax

corresponds to an amount paid to you as a refund, or applied

under Division 3 of Part IIB of the Taxation Administration

Act 1953:

(i) on or after 12 December 2008 and before this Act

received the Royal Assent; and

(ii) in relation to the net amount, net fuel amount or amount

of indirect tax;

GST and representatives of incapacitated entities Schedule 1

Transitional provisions Part 4

Tax Laws Amendment (2009 Measures No. 5) Bill 2009 No. , 2009 25

that Act applies in relation to the net amount, net fuel amount or amount

of indirect tax as if the reference in subsection 105-50(1) in Schedule 1

to that Act to 4 years after the net amount, net fuel amount or amount of

indirect tax became payable by you were a reference to 4 years after the

payment of the refund or application of the amount under that Division.

54 Refunds of amounts wrongly paid by incapacitated

entities

If:

(a) before this Act received the Royal Assent, an incapacitated

entity paid an amount of indirect tax (including any relevant

general interest charge under the Taxation Administration Act

1953) that was payable by a representative of an

incapacitated entity; and

(b) but for this item, the Commissioner would be liable to refund

the amount to the incapacitated entity;

the Commissioner is not liable to refund the amount unless the

representative has also paid the amount to the Commissioner.

55 Liability of representatives of incapacitated entities

A representative of an incapacitated entity is not liable to make a

payment to the Commissioner relating to a net amount if:

(a) but for this item, the representative would be liable, because

of amendments made by this Schedule, to make the payment;

and

(b) the liability arose as a result of acts or omissions that were

within the scope of the representative's responsibility or

authority for managing the incapacitated entity's affairs; and

(d) the net amount has been disclosed in a GST return given to

the Commissioner in accordance with the A New Tax System

(Goods and Services Tax) Act 1999:

(i) before 6 February 2009; or

(ii) within the period required under that Act for giving the

return; and

(e) either the incapacitated entity has paid the net amount to the

Commissioner, or both of the following apply:

(i) the incapacitated entity was unable to pay the net

amount to the Commissioner before 6 February 2009;

Taxation of financial arrangements Schedule 2

Amendment commencing on Royal Assent Part 1

Tax Laws Amendment (2009 Measures No. 5) Bill 2009 No. , 2009 27

Schedule 2--Taxation of financial

arrangements

Part 1--Amendment commencing on Royal Assent

Taxation Administration Act 1953

1 Subsection 45-120(2B) in Schedule 1

Repeal the subsection (including the heading).

2 Application

The amendment made by this Part applies to you for the first applicable

income year (within the meaning of item 102 of Schedule 1 to the Tax

Laws Amendment (Taxation of Financial Arrangements) Act 2009) and

later income years.

3 Transitional

(1)

This item applies to you if:

(a) you are a quarterly payer who pays on the basis of instalment

income at the end of the first instalment quarter ending after

the commencement of this item; and

(b) an amount is included in your instalment income under

subsection 45-120(2B) in Schedule 1 to the Taxation

Administration Act 1953 (disregarding the amendment made

by this Part) for an instalment quarter starting on or after

1 July 2009 and ending before the commencement of this

item.

(2)

For each instalment quarter mentioned in paragraph (1)(b), work out:

(a) your instalment income for the quarter (taking into account

the amendment made by this Part); and

(b) your instalment income for the quarter (disregarding the

amendment made by this Part).

(3) Next:

(a) work out the total of every amount worked out under

paragraph (2)(a); and

(b) work out the total of every amount worked out under

paragraph (2)(b); and

Schedule 2 Taxation of financial arrangements

Part 1 Amendment commencing on Royal Assent

28 Tax Laws Amendment (2009 Measures No. 5) Bill 2009 No. , 2009

subitem from the amount worked out under paragraph (a) of

this subitem.

(4)

If the amount worked out under paragraph (3)(c) is more than nil,

increase your instalment income for the first instalment quarter ending

after the commencement of this item by that amount.

Taxation of financial arrangements Schedule 2

Amendment commencing immediately after Royal Assent Part 2

Tax Laws Amendment (2009 Measures No. 5) Bill 2009 No. , 2009 29

Part 2--Amendment commencing immediately after

Royal Assent

Taxation Administration Act 1953

4 After subsection 45-120(2A) in Schedule 1

Insert:

Net gains under Subdivision 250-E of the Income Tax Assessment

Act 1997 included in instalment income

(2B) Your instalment income for a period also includes the difference

between:

(a) a gain (or gains) you make from a

financial arrangement to

the extent to which it is (or they are):

(i) assessable under Subdivision 250-E of the Income Tax

Assessment Act 1997; and

(ii) reasonably attributable to that period; and

(b) a loss (or losses) you make from a financial arrangement to

the extent to which it is (or they are):

(i) allowable to you as a deduction under

Subdivision 250-E of the Income Tax Assessment Act

1997; and

(ii) reasonably attributable to that period.

This is so only if the gain (or gains) referred to in paragraph (a)

exceeds the loss (or losses) referred to in paragraph (b).

5 Application

The amendment made by this Part applies to you for the first applicable

income year (within the meaning of item 102 of Schedule 1 to the Tax

Laws Amendment (Taxation of Financial Arrangements) Act 2009) and

later income years.

Schedule 3 Helping Children with Autism package

30 Tax Laws Amendment (2009 Measures No. 5) Bill 2009 No. , 2009

Schedule 3--Helping Children with Autism

package

Income Tax Assessment Act 1997

1 Section 11-15 (table item headed "social security or like

payments")

After:

farm help income support ................................................... 53-10 and 53-15

Insert:

Helping Children with Autism package, Outer Regional

and Remote payment under .........................................

52-170

2 At the end of Subdivision 52-H

Add:

52-170 Outer Regional and Remote payments under the Helping

Children with Autism package are exempt

Payments known as Outer Regional and Remote payments under

the Helping Children with Autism package are exempt from

income tax.

3 Application

The amendments made by this Schedule apply in relation to payments

made in:

(a) the 2008-09 income year; and

(b) later income years.

Continence Aids Payment Scheme Schedule 4

Tax Laws Amendment (2009 Measures No. 5) Bill 2009 No. , 2009 31

Schedule 4--Continence Aids Payment

Scheme

Income Tax Assessment Act 1997

1 Section 11-15 (after table item headed "foreign aspects of

income taxation")

Insert:

health

Continence Aids Payment Scheme, payments under ........ 52-175

2 At the end of Subdivision 52-H

Add:

52-175 Continence aids payments are exempt

Payments under the scheme known as the Continence Aids

Payment Scheme are exempt from income tax.

3 Application

The amendments made by this Schedule apply in relation to payments

made in:

(a) the 2010-11 income year; and

(b) later income years.

Schedule 5 Exempting Commonwealth Government Securities from interest

withholding tax

32 Tax Laws Amendment (2009 Measures No. 5) Bill 2009 No. , 2009

Schedule 5--Exempting Commonwealth

Government Securities from interest

withholding tax

Income Tax Assessment Act 1936

1 Subsections 128F(5A) and (5B)

Repeal the subsections.

2 Subsection 128F(7)

Repeal the subsection, substitute:

Australian public bodies are treated as Australian resident

companies

(7) This section applies in relation to a debenture or debt interest

issued by:

(a) the Commonwealth, a State or a Territory; or

(b) an authority of the Commonwealth, of a State or of a

Territory;

as if the Commonwealth, State, Territory or authority were a

company and a resident of Australia.

3 Application

The amendments made by this Schedule apply to interest paid on or

after the commencement of this Schedule.

2009 Victorian Bushfire Appeal Trust Account Schedule 6

Main provisions Part 1

Tax Laws Amendment (2009 Measures No. 5) Bill 2009 No. , 2009 33

Schedule 6--2009 Victorian Bushfire Appeal

Trust Account

Part 1--Main provisions

1 Interpretation

Expressions used in this Part that are also used in the Income Tax

Assessment Act 1997 have the same meaning as in that Act.

2 2009 Victorian Bushfire Appeal Trust Account

This Part applies if the 2009 Victorian Bushfire Appeal Trust Account

mentioned in item 4.2.41 of the table in subsection 30-45(2) of the

Income Tax Assessment Act 1997 is used only for one or more of the

following purposes for the benefit of communities and individuals

affected by the Victorian bushfires of January and February 2009:

(a) purposes consistent with those described in item 4.1.5 of the

table in subsection 30-45(1) of that Act for Australian

disaster relief funds covered by that item;

(b) providing broad public benefits that:

(i) are consistent with the purposes of one or more exempt

entities; and

(ii) are widely and publicly accessible; and

(iii) are commercial or private only to an incidental and

ancillary extent, if at all;

for purposes covered by paragraph (a) or (b);

(d) providing long-term assistance to orphans who are less than

18 years old;

(e)

providing:

(i) assistance to individuals whose main residences were

destroyed in the bushfires, if the residences had the

characteristics of being the owner-occupied main

residences of the individuals (ignoring the actual legal

ownership of the residences); or

(ii) assistance to individuals who, because of the bushfires,

have lived or are living in transitional housing, up to

$15,000 for each individual;

(f) providing assistance to individuals who:

Schedule 6 2009 Victorian Bushfire Appeal Trust Account

Part 1 Main provisions

34 Tax Laws Amendment (2009 Measures No. 5) Bill 2009 No. , 2009

(i) carry on primary production businesses; or

(ii) are partners in partnerships that carry on primary

production businesses; or

(iii) are beneficiaries of trusts that carry on primary

production businesses;

up to $10,000 for each individual.

3 Australian Red Cross Society

For the purposes of a taxation law, in determining whether the

Australian Red Cross Society is a public benevolent institution or a

charitable institution, disregard any payments from the Society to the

2009 Victorian Bushfire Appeal Trust Account.

4 Application

Item 3 applies in relation to payments made:

(a) after 28 January 2009; and

(b) before 6 February 2014.

2009 Victorian Bushfire Appeal Trust Account Schedule 6

Consequential amendments Part 2

Tax Laws Amendment (2009 Measures No. 5) Bill 2009 No. , 2009 35

Part 2--Consequential amendments

Income Tax Assessment Act 1997

5 At the end of subsection 30-45(1)

Add:

Note:

In determining whether the Australian Red Cross Society is a public

benevolent institution or a charitable institution, see Part 1 of

Schedule 6 to the Tax Laws Amendment (2009 Measures No. 5) Act

2009.

6 Subsection 30-45(1) (note)

Repeal the note.

7 Subsection 30-45(2) (table item 4.2.41)

Repeal the item.

Commonwealth of Australia Bills

TAX LAWS AMENDMENT (2009 MEASURES NO. 5) BILL 2009