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This is a Bill, not an Act. For current law, see the Acts databases.
TAX LAWS AMENDMENT (RESALE ROYALTY RIGHT FOR VISUAL ARTISTS) BILL 2009
2008-2009
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Tax Laws Amendment (Resale Royalty
Right for Visual Artists) Bill 2009
No. , 2009
(Treasury)
A Bill for an Act to amend the law relating to
taxation, and for related purposes
i Tax Laws Amendment (Resale Royalty Right for Visual Artists) Bill 2009 No. , 2009
Contents
1 Short
title
...........................................................................................
1
2 Commencement
.................................................................................
1
3 Schedule(s)
........................................................................................
2
Schedule 1--Resale royalty right for visual artists
3
Income Tax Assessment Act 1997
3
Income Tax (Transitional Provisions) Act 1997
8
Taxation Administration Act 1953
8
Tax Laws Amendment (Resale Royalty Right for Visual Artists) Bill 2009 No. , 2009 1
A Bill for an Act to amend the law relating to
1
taxation, and for related purposes
2
The Parliament of Australia enacts:
3
1 Short title
4
This Act may be cited as the Tax Laws Amendment (Resale Royalty
5
Right for Visual Artists) Act 2009.
6
2 Commencement
7
(1) Each provision of this Act specified in column 1 of the table
8
commences, or is taken to have commenced, in accordance with
9
column 2 of the table. Any other statement in column 2 has effect
10
according to its terms.
11
12
2 Tax Laws Amendment (Resale Royalty Right for Visual Artists) 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
At the same time as Part 2 of the Resale
Royalty Right for Visual Artists Act 2009
commences.
Note:
This table relates only to the provisions of this Act as originally
1
passed by both Houses of the Parliament and assented to. It will not be
2
expanded to deal with provisions inserted in this Act after assent.
3
(2) Column 3 of the table contains additional information that is not
4
part of this Act. Information in this column may be added to or
5
edited in any published version of this Act.
6
3 Schedule(s)
7
Each Act that is specified in a Schedule to this Act is amended or
8
repealed as set out in the applicable items in the Schedule
9
concerned, and any other item in a Schedule to this Act has effect
10
according to its terms.
11
12
Resale royalty right for visual artists Schedule 1
Tax Laws Amendment (Resale Royalty Right for Visual Artists) Bill 2009 No. , 2009
3
Schedule 1--Resale royalty right for visual
1
artists
2
3
Income Tax Assessment Act 1997
4
1 Section 10-5 (after table item headed "child")
5
Insert:
6
collecting societies
payments of royalties by copyright collecting societies ...... 15-22
payments of royalties by resale royalty collecting
society ............................................................................
15-23
2 Section 10-5 (table item headed "payments to members of
7
copyright collecting societies")
8
Repeal the item.
9
3 Section 11-15 (table item headed "copyright collecting
10
societies")
11
Repeal the item, substitute:
12
copyright collecting societies
51-43
4 Section 11-15 (after table item headed "life insurance
13
companies")
14
Insert:
15
resale royalty collecting societies
51-45
5 Subsection 15-20(2)
16
After "section 15-22", insert "or 15-23".
17
6 Subsection 15-22(2)
18
Omit "tax", substitute "
*
tax".
19
7 After section 15-22
20
Insert:
21
Schedule 1 Resale royalty right for visual artists
4 Tax Laws Amendment (Resale Royalty Right for Visual Artists) Bill 2009 No. ,
2009
15-23 Payments of resale royalties by resale royalty collecting
1
society
2
(1) This section, instead of Division 6 of Part III of the Income Tax
3
Assessment Act 1936, applies to a payment that the
*
resale royalty
4
collecting society makes to you under section 26 of the Resale
5
Royalty Right for Visual Artists Act 2009.
6
(2) Your assessable income includes the amount of the payment,
7
except to the extent that the payment represents an amount on
8
which the directors of the society are or have been assessed, and
9
are liable to pay
*
tax, under section 98, 99 or 99A of the Income
10
Tax Assessment Act 1936.
11
Note:
Section 410-50 of this Act requires the resale royalty collecting
12
society to give you a notice at the time of payment.
13
8 Section 51-43
14
Repeal the section, substitute:
15
51-43 Income collected or derived by copyright collecting society
16
(1) This section applies to a
*
copyright collecting society if Division 6
17
of Part III of the Income Tax Assessment Act 1936 applies to the
18
income of the society.
19
(2) The following are exempt from income tax:
20
(a)
*
royalties, and interest on royalties, collected or
*
derived by
21
the society in an income year;
22
(b) any other amounts, relating to copyright, that are:
23
(i) derived by the society in an income year; and
24
(ii) prescribed by the regulations for the purposes of this
25
paragraph;
26
(c)
other
*
ordinary income and
*
statutory income derived by the
27
society in an income year, to the extent that it does not
28
exceed the lesser of:
29
(i) 5% of the total amount of the
*
ordinary income and
30
*
statutory income collected and derived by the society
31
in the income year; and
32
(ii) $5 million or such other amount as is prescribed by the
33
regulations for the purposes of this subparagraph.
34
Resale royalty right for visual artists Schedule 1
Tax Laws Amendment (Resale Royalty Right for Visual Artists) Bill 2009 No. , 2009
5
51-45 Income collected or derived by resale royalty collecting society
1
(1) This section applies to the
*
resale royalty collecting society if
2
Division 6 of Part III of the Income Tax Assessment Act 1936
3
applies to the income of the society.
4
(2) The following are exempt from income tax:
5
(a)
*
resale royalties, and interest on resale royalties, collected or
6
*
derived by the society in an income year;
7
(b) any other amounts, relating to
*
resale royalty rights, that are:
8
(i) derived by the society in an income year; and
9
(ii) prescribed by the regulations for the purposes of this
10
paragraph;
11
(c)
other
*
ordinary income and
*
statutory income derived by the
12
society in an income year, to the extent that it does not
13
exceed the lesser of:
14
(i) 5% of the total amount of the ordinary income and
15
statutory income collected and derived by the society in
16
the income year; and
17
(ii) $5 million or such other amount as is prescribed by the
18
regulations for the purposes of this subparagraph.
19
9 Transitional--regulations
20
(1) Regulations:
21
(a) made for the purposes of paragraph (b) of the definition of
22
copyright income in subsection 995-1(1) of the Income Tax
23
Assessment Act 1997; and
24
(b) in force just before the commencement of this item;
25
have effect, from that commencement, as if they had been made for the
26
purposes of paragraph 51-43(2)(b) of that Act, as substituted by this
27
Schedule.
28
(2) Regulations:
29
(a) made for the purposes of subparagraph 51-43(2)(b)(ii) of the
30
Income Tax Assessment Act 1997; and
31
(b) in force just before the commencement of this item;
32
have effect, from that commencement, as if they had been made for the
33
purposes of subparagraph 51-43(2)(c)(ii) of that Act, as substituted by
34
this Schedule.
35
Schedule 1 Resale royalty right for visual artists
6 Tax Laws Amendment (Resale Royalty Right for Visual Artists) Bill 2009 No. ,
2009
10 Division 410
1
Repeal the Division, substitute:
2
Division 410--Copyright and resale royalty collecting
3
societies
4
Table of Subdivisions
5
Guide to Division 410
6
410-A Notice of payments
7
Guide to Division 410
8
410-1 What this Division is about
9
This Division sets out rules that apply whenever:
10
(a)
a copyright collecting society to which
11
section 51-43 applies makes a payment to a
12
member of the society; or
13
(b)
the resale royalty collecting society pays a resale
14
royalty.
15
Subdivision 410-A--Notice of payments
16
Table of sections
17
410-5
Copyright collecting society must give notice to member of society
18
410-50
Resale royalty collecting society must give notice to holder of resale royalty
19
right
20
410-5 Copyright collecting society must give notice to member of
21
society
22
(1)
A
*
copyright collecting society must give a
*
member of the society
23
notice of any payment it makes to the member, if section 51-43
24
applies to the society.
25
(2) The society must give the notice at the time of the payment.
26
Resale royalty right for visual artists Schedule 1
Tax Laws Amendment (Resale Royalty Right for Visual Artists) Bill 2009 No. , 2009
7
(3) The notice must be in the
*
approved form.
1
Note:
Under section 288-75 in Schedule 1 to the Taxation Administration
2
Act 1953 a society is liable to an administrative penalty for failing to
3
give a notice required under this section.
4
410-50 Resale royalty collecting society must give notice to holder of
5
resale royalty right
6
(1)
The
*
resale royalty collecting society must give an entity notice of
7
any payment it makes to the entity under section 26 of the Resale
8
Royalty Right for Visual Artists Act 2009, if section 51-45 of this
9
Act applies to the society.
10
(2) The society must give the notice at the time of the payment.
11
(3) The notice must be in the
*
approved form.
12
Note:
Under section 288-75 in Schedule 1 to the Taxation Administration
13
Act 1953 the society is liable to an administrative penalty for failing to
14
give a notice required under this section.
15
11 Subsection 995-1(1) (subparagraph (b)(iii) of the definition
16
of copyright collecting society)
17
After "subparagraph (ii)", insert "or, if the company is the
*
resale
18
royalty collecting society, relate to the company's functions or duties as
19
resale royalty collecting society".
20
12 Subsection 995-1(1) (subparagraph (b)(iv) of the definition
21
of copyright collecting society)
22
Omit "
*
copyright income", substitute "income of a kind mentioned in
23
paragraph 51-43(2)(a) or (b)".
24
13 Subsection 995-1(1) (definition of copyright income)
25
Repeal the definition.
26
14 Section 995-1 (definition of non-copyright income)
27
Repeal the definition.
28
15 Subsection 995-1(1)
29
Insert:
30
Schedule 1 Resale royalty right for visual artists
8 Tax Laws Amendment (Resale Royalty Right for Visual Artists) Bill 2009 No. ,
2009
resale royalty means resale royalty under the Resale Royalty Right
1
for Visual Artists Act 2009.
2
16 Subsection 995-1(1)
3
Insert:
4
resale royalty collecting society means the collecting society,
5
within the meaning given by the Resale Royalty Right for Visual
6
Artists Act 2009.
7
17 Subsection 995-1(1)
8
Insert:
9
resale royalty right has the meaning given by the Resale Royalty
10
Right for Visual Artists Act 2009.
11
Income Tax (Transitional Provisions) Act 1997
12
18 Subsection 410-1(1)
13
Omit "copyright income, and non-copyright income", substitute
14
"ordinary income, and statutory income,".
15
Taxation Administration Act 1953
16
19 Section 288-75 in Schedule 1
17
Repeal the section, substitute:
18
288-75 Administrative penalty for a copyright or resale royalty
19
collecting society
20
(1)
A
*
copyright collecting society is liable to an administrative
21
penalty of 20 penalty units if the society fails to give a notice as
22
required by section 410-5 of the Income Tax Assessment Act 1997.
23
(2)
The
*
resale royalty collecting society is liable to an administrative
24
penalty of 20 penalty units if the society fails to give a notice as
25
required by section 410-50 of the Income Tax Assessment Act
26
1997.
27
Note:
See section 4AA of the Crimes Act 1914 for the current value of a
28
penalty unit.
29
Resale royalty right for visual artists Schedule 1
Tax Laws Amendment (Resale Royalty Right for Visual Artists) Bill 2009 No. , 2009
9
20 Application
1
The amendments made by this Schedule apply in relation to:
2
(a) the 2009-10 income year; and
3
(b) later income years.
4