Commonwealth Consolidated Acts

TAX LAW IMPROVEMENT ACT (NO. 1) 1998 - SCHEDULE 8

Part 1—Amendment of the Income Tax (Transitional Provisions) Act 1997
1 At the end of the Act

Add:

[The next Division is Division 405.]

Division 405—Above-average special professional income of authors, inventors, performing artists, production associates and sportspersons

Table of sections

405-1 Application of Division 405 of the Income Tax Assessment Act 1997

405-1 Application of Division 405 of the Income Tax Assessment Act 1997

(1)

Division 405 of the Income Tax Assessment Act 1997 applies for the purposes of assessments for the 1998-99 income year and later income years.

(2)

It applies for the purposes of your assessment as if:

(a) for each income year earlier than the 1998-99 income year you had a taxable professional income equal to your eligible taxable income (if any) under Division 16A of Part III of the Income Tax Assessment Act 1936 for that earlier income year; and
(b) you had been an Australian resident for each income year before the 1998-99 income year for which you were a qualifying resident taxpayer under Division 16A of Part III of the Income Tax Assessment Act 1936 .

Part 2—Consequential amendment of the Income Tax Assessment Act 1936
2 Before section 158B

Insert:

158BA Division 16A does not apply to 1998-99 or later year of income

This Division does not apply for the purposes of an assessment for the 1998-99 year of income or a later year of income.

3 Subsection 159ZR(1) (paragraph (b) of the definition of normal taxable income )

Repeal the paragraph, substitute:

(b) the taxable income were reduced by:
(i) any abnormal income amount taken to be included in the taxable income under section 158L; or
(ii) any above-average special professional income included in the taxable income under section 405-15 of the Income Tax Assessment Act 1997 ; and
4 Paragraph 221YBA(2)(b)

Repeal the paragraph, substitute:

(b) the above-average special professional income included in the taxpayer's taxable income under section 405-15 of the Income Tax Assessment Act 1997 .
5 Subsection 221YCAA(2) (paragraph (f) of the definition of adjusted preceding year's tax )

Repeal the paragraph, substitute:

(f) the taxpayer's taxable professional income for the preceding year of income had been increased by the provisional tax uplift factor for the current year of income, for the purposes of Division 405 of the Income Tax Assessment Act 1997 (which deals with above-average special professional income) except working out the taxpayer's average taxable professional income for the current year of income; and
6 Subparagraph 221YCAA(3)(b)(iv)

Repeal the subparagraph, substitute:

(iv) for the purposes of Division 405 of the Income Tax Assessment Act 1997 (which deals with above-average special professional income), the taxpayer's taxable professional income for the preceding year of income were any amount determined by the Commissioner.
7 Paragraph 221YDA(1)(dab)

Repeal the paragraph, substitute:

(dab) the taxpayer's taxable professional income and average taxable professional income for the year of income for the purposes of Division 405 of the Income Tax Assessment Act 1997 (which deals with above-average special professional income); and
8 Subparagraph 221YDA(2)(a)(iii)

Repeal the subparagraph, substitute:

(iii) the taxpayer's taxable professional income and average taxable professional income for the year of income for the purposes of Division 405 of the Income Tax Assessment Act 1997 (which deals with above-average special professional income) were those amounts as shown in the statement; and
9 Application of amendments made by items 4 to 8

The amendments made by items 4 to 8 apply for the purposes of working out amounts of provisional tax payable for the 1999-2000 year of income and later years of income.

Part 3—Consequential amendment of the Income Tax Rates Act 1986
10 Subsection 3(1) (definition of abnormal income amount )

Omit "the abnormal income amount (if any) included in the taxable income of the taxpayer of the year of income as specified in section 158L of the Assessment Act", substitute "any above-average special professional income included in the taxpayer's taxable income for the year of income under section 405-15 of the Income Tax Assessment Act 1997 ".