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This is a Bill, not an Act. For current law, see the Acts databases.
2002-2003-2004
The Parliament
of the
Commonwealth of
Australia
HOUSE OF
REPRESENTATIVES
Presented and read a first
time
Tax
Laws Amendment (Wine Producer Rebate and Other Measures) Bill
2004
No. ,
2004
(Treasury)
A Bill
for an Act about tax relating to wine and capital allowances for grapevines, and
for related purposes
Contents
A New Tax System (Wine Equalisation Tax) Act
1999 3
A New Tax System (Wine Equalisation Tax) Act
1999 8
Income Tax Assessment Act
1997 10
A New Tax System (Wine Equalisation Tax) Act
1999 14
A Bill for an Act about tax relating to wine and capital
allowances for grapevines, and for related purposes
The Parliament of Australia enacts:
This Act may be cited as the Tax Laws Amendment (Wine Producer Rebate
and Other Measures) Act 2004.
(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.
|
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 on which this Act receives the Royal Assent. |
|
|
2. Schedule 1 |
1 October 2004. |
1 October 2004 |
|
3. Schedule 2 |
The day on which this Act receives the Royal Assent. |
|
|
4. Schedule 3 |
1 October 2004. |
1 October 2004 |
|
5. Schedule 4 |
The day on which this Act receives the Royal Assent. |
|
Note: This table relates only to the provisions of this Act
as originally passed by 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.
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repealed as set out in the applicable items in the Schedule concerned, and any
other item in a Schedule to this Act has effect according to its
terms.
A New Tax System (Wine
Equalisation Tax) Act 1999
1 Division 19
Repeal the Division, substitute:
Wine producers are entitled to a rebate for certain dealings in wine. The
rebate is provided in the form of a wine tax credit.
Note: Credit ground CR9 is producer
rebates.
You are entitled to a *producer rebate
for *rebatable wine for a
*financial year if you are the
*producer of the wine and:
(a) you are liable to wine tax for a
*taxable dealing in the wine during the
financial year; or
(b) you would have been liable to wine tax for a dealing in the wine
during the financial year had the purchaser not
*quoted for the sale at or before the time of
the sale.
(1) You are not entitled to a *producer
rebate for a dealing in wine because of paragraph 19-5(b) if the purchaser
notifies you at or before the time of purchase that the purchaser intends to
make a *supply of the wine that will be
*GST-free.
(2) You are not entitled to a *producer
rebate for a dealing in wine for which you are liable to wine tax if you have
claimed a *wine tax credit, or a wine tax
credit subsequently arises for you, for the dealing (except because of a
producer rebate).
(1) The amount of the *producer rebates
to which you are entitled for the wine for the
*financial year is:
(a) for *wholesale sales—29% of the
*price (excluding wine tax and
*GST) for which the wine was sold;
and
(b) for *retail sales and
*AOUs—29% of the
*notional wholesale selling price of the
wine.
(2) The maximum amount of *producer
rebates to which a *producer is entitled for a
*financial year is $290,000.
(3) However, if the *producer is an
*associated producer of one or more other
producers for a *financial year, the maximum
amount of *producer rebates to which those
producers are entitled as a group for the financial year is $290,000.
(1) A *producer is an associated
producer of another producer for a
*financial year if, at the end of that
financial year:
(a) the producer would be *connected with
the other producer if subsection 152-30(8) of the ITAA 1997 were omitted;
or
(b) the producer:
(i) is under an obligation (whether formal or informal); or
(ii) might reasonably be expected;
to act in accordance with the directions, instructions or wishes (however
communicated) of the other producer in relation to the first producer’s
financial affairs; or
(c) the other producer:
(i) is under an obligation (whether formal or informal); or
(ii) might reasonably be expected;
to act in accordance with the directions, instructions or wishes (however
communicated) of the first producer in relation to the other producer’s
financial affairs.
(2) 2 *producers are associated
producers if each of them:
(a) is under an obligation (whether formal or informal); or
(b) might reasonably be expected;
to act in accordance with the directions, instructions or wishes (however
communicated) of the same third entity in relation to their financial
affairs.
(3) A *producer is an associated
producer of another producer if:
(a) the first producer:
(i) is under an obligation (whether formal or informal); or
(ii) might reasonably be expected;
to act in accordance with the directions, instructions or wishes (however
communicated) of a third producer in relation to the first producer’s
financial affairs; and
(b) the third producer:
(i) is under an obligation (whether formal or informal); or
(ii) might reasonably be expected;
to act in accordance with the directions, instructions or wishes (however
communicated) of the other producer in relation to the third producer’s
financial affairs.
(1) If the sum of the amounts of
*producer rebates that you claim for
*tax periods during the
*financial year exceeds the amount of the
*producer rebates to which you are entitled in
respect of the financial year, you are liable to pay an amount equal to that
excess.
(2) Subsection (3) applies if a
*producer is an
*associated producer of one or more other
producers for a *financial year and the
*producer rebates claimed by those producers as
a group for the financial year is more than $290,000.
(3) Each *producer member of the group is
jointly and severally liable to pay an amount equal to the excess. However, none
of the individual producer members is liable to pay an amount that exceeds the
sum of the amounts of *producer rebates that
that producer claimed for the *financial
year.
(4) An amount payable under this section is to be treated as if it were
wine tax payable at the end of the *financial
year, and, for the purposes of Part 5, were attributable to the last tax
period of the financial year.
Note: The main effect of treating the amount as if it were
wine tax is to apply the collection and recovery rules in Part VI of the
Taxation Administration Act 1953.
A person is guilty of an offence if:
(a) the person purchases wine from a
*producer and
*quotes for the purchase; and
(b) the person intends, at the time of the purchase, to make a supply of
the wine that will be *GST-free; and
(c) the person does not notify the producer, in the
*approved form, of that intention at or before
the time of the purchase.
Maximum penalty: 20 penalty units.
Note 1: Chapter 2 of the Criminal Code sets out
the general principles of criminal responsibility.
Note 2: See section 4AA of the Crimes Act 1914
for the current value of a penalty unit.
2 Section 33-1 (definition of annual
rebatable turnover)
Repeal the definition.
3 Section 33-1
Insert:
associated producer has the meaning given by
section 19-20.
4 Section 33-1
Insert:
connected with has the meaning given by section 152-30
of the ITAA 1997.
5 Section 33-1 (definition of
producer)
Repeal the definition, substitute:
producer, of *rebatable
wine, means an entity that *manufactures the
wine, or supplies to another entity the grapes, other fruit, vegetables or honey
from which the wine is manufactured.
6 Section 33-1 (definition of
producer’s licence)
Repeal the definition.
7 Application
The amendments made by this Schedule apply to dealings in wine made on or
after 1 October 2004.
8 Transitional provisions
(1) The amount of producer rebate for a producer of rebatable wine under
the A New Tax System (Wine Equalisation Tax) Act 1999 (as in force
immediately before the commencement of this Schedule) for dealings in wine made
on or after 1 July 2004 and before 1 October 2004 is the amount worked
out under section 19-10 of that Act (as so in force) as if
30 September 2004 were the end of a financial year.
(2) The maximum amount of producer rebate for a producer, or a group of
associated producers, of rebatable wine under the A New Tax System (Wine
Equalisation Tax) Act 1999 (as in force after the commencement of this
Schedule) for the 2004-05 financial year is $217,500.
A New Tax System (Wine
Equalisation Tax) Act 1999
1 Section 5-5 (at the end of the Assessable
Dealings Table)
Add:
|
AD15 |
*retail sale, in the course of any
business, of wine that is placed in *containers
at a time after wine tax became payable on the wine by a person other than the
seller |
seller |
time of sale |
the *notional wholesale selling
price |
2 After section 17-35
Insert:
(1) A *wine tax credit under
*CR10 in relation to wine that is
*exported is subject to the condition that you
are liable to pay an amount equal to the credit if:
(a) the wine is returned to Australia; and
(b) the *local entry of the wine is not
taxable because of:
(i) paragraph 7-5(b) (as it operates because of section 42-10 of the
*GST Act); or
(ii) section 7-25; and
(c) you later sell the wine by *retail
sale or there is a later *AOU of the
wine.
(2) The amount is to be treated as if it were wine tax that became payable
by you at the time of the later sale or later
*AOU of the wine, and, for the purposes of
Part 5, were attributable to the *tax
period in which the later sale or later AOU happened.
Note: The main effect of treating the amount as if it were
wine tax is to apply the collection and recovery rules in Part VI of the
Taxation Administration Act 1953.
3 Application
The amendment made by item 1 of this Schedule applies to wine that is
placed in containers after the commencement of this Schedule.
Income Tax Assessment Act
1997
1 Section 12-5 (table item headed
“capital allowances”)
Omit “, horticultural plants and grapevines”, substitute
“and horticultural plants”.
2 Section 12-5 (table item headed “grape
vines”)
Repeal the item.
3 Section 40-10 (table
item 1.5)
Repeal the item, substitute:
|
1.5 |
Primary production depreciating assets You can deduct amounts for capital expenditure on: • water facilities over 3 income years; or • horticultural plants over a period that relates to
the effective life of the plant. |
Subdivision 40-F |
4 Subsection 40-425(2)
Omit “(including a grapevine)”.
5 Subsection 40-425(5)
Omit “(including a grapevine)”.
6 Section 40-510
Omit “, horticultural plants or grapevines”, substitute
“or horticultural plants”.
7 Section 40-515 (heading)
Repeal the heading, substitute:
8 Paragraphs 40-515(1)(b) and
(c)
Repeal the paragraphs, substitute:
(b) a *horticultural plant.
9 Subsection 40-515(1) (note 1)
Omit “, 40-545 and 40-550”, substitute “and
40-545”.
10 Subsection 40-525(3)
Repeal the subsection.
11 Section 40-530
(heading)
Repeal the heading, substitute:
12 Section 40-530
Omit “, *horticultural plant or
grapevine”, substitute “or horticultural plant”.
13 Section 40-530 (table
item 3)
Repeal the table item.
14 Section 40-550
Repeal the section.
15 Subsection 40-555(3)
(heading)
Repeal the heading, substitute:
Horticultural plants
16 Subsection 40-555(3)
Omit “or a grapevine”.
17 Section 40-565
(heading)
Repeal the heading, substitute:
18 Subsection 40-565(1)
Repeal the subsection, substitute:
(1) You can deduct the amount worked out under subsection (2) for a
*horticultural plant for an income year if its
*effective life is 3 years or more and it is
destroyed during the income year while you own it and use it for
*commercial horticulture.
19 Subsection 40-565(2) (method
statement)
Repeal the method statement, substitute:
Method statement
Step 1. Work out the total of the amounts you could have deducted
under this Subdivision for the *horticultural
plant for the period:
(a) starting when the plant could first be used for
*commercial horticulture; and
(b) ending when it was destroyed;
assuming that, during that period, you satisfied a condition in
section 40-525 for the plant and used it for commercial
horticulture.
Step 2. Subtract from the capital expenditure that is attributable
to the establishment of the *horticultural
plant:
(a) the result from step 1; and
(b) any amount you received (under an insurance policy or otherwise) for
the destruction.
The remaining amount (if any) is your deduction under
subsection (1).
20 Subsection 40-565(3)
Omit “or 40-550”.
21 Section 40-575
(heading)
Repeal the heading, substitute:
22 Subsection 40-575(1)
Repeal the subsection, substitute:
(1) If you begin to satisfy a condition in section 40-525 for a
*horticultural plant, you may give the last
entity (if any) that satisfied such a condition for the plant a written notice
requiring the entity to give you any or all of the following
information:
(a) the amount of establishment expenditure for the plant;
(b) if the entity used the plant’s
*effective life to work out the decline in
value of the plant—its effective life and the day on which it could first
be used for *commercial horticulture.
23 Subsection 40-575(6)
Omit “or grapevine”.
24 Subparagraph
40-840(2)(d)(ii)
Omit “including grapevines”.
25 Application
The amendments made by this Schedule do not apply to a grapevine:
(a) for which an entity has satisfied a condition in subsection 40-525(3)
of the Income Tax Assessment Act 1997 (as in force immediately before the
commencement of this Schedule) before 1 October 2004; and
(b) that the entity first used in a primary production business for the
purpose of producing assessable income before 1 October 2004; and
(c) for which the entity has deducted or can deduct an amount worked out
under section 40-550 of that Act (as so in force).
A New Tax System (Wine
Equalisation Tax) Act 1999
1 Subsection 3-5(3) (table
item 4)
Repeal the table item.