Commonwealth Numbered Acts

NEW BUSINESS TAX SYSTEM (SIMPLIFIED TAX SYSTEM) ACT 2001 NO. 78, 2001 - SCHEDULE 3

Income Tax Assessment Act 1936

1 Subsection 82KZL(1)

STS taxpayer has the meaning given by section 328-435 of the Income Tax Assessment Act 1997 .

2 Subparagraph 82KZM(1)(aa)(i)

Note: The heading to section 82KZM is altered by omitting " small business taxpayer and " and substituting " STS taxpayer and individuals incurring ".

3 Subparagraph 82KZM(1)(aa)(ii)

4 Paragraph 82KZM(1)(b)

(b)

the expenditure is not excluded expenditure; and

(ba)

either:

(i)

the eligible service period for the expenditure is longer than 12 months; or

(ii)

the eligible service period for the expenditure is 12 months or shorter but ends after the last day of the year of income after the one in which the expenditure was incurred; and

5 Subsection 82KZMA(1) (notes 1 and 2)

6 Paragraph 82KZMA(2)(a)

(a)

must:

(i)

carry on a business; or

(ii)

be a taxpayer that is not an individual and that does not carry on a business; and

7 Paragraph 82KZMA(2)(b)

8 Subsection 82KZMA(3)

(3) The expenditure must be:

(a)

either:

(i)

incurred in carrying on a business; or

(ii)

incurred otherwise than in carrying on a business by a taxpayer that is not an individual; and

(b)

incurred under an agreement (see subsection 82KZL(1); and

(c)

incurred in return for the doing of a thing under the agreement that is not to be wholly done within the expenditure year.

9 Subsection 82KZMB(7)

9A At the end of section 82KZMB

(8) Subsection (7) does not apply to:

(a)

expenditure described in paragraph 82KZMC(1A)(a); or

(b)

a taxpayer described in paragraph 82KZMC(1A)(b).

10 Subsection 82KZMC(1) (before the note)

(1A) This section does not apply, for a year of income starting after 30 June 2001, to:

(a)

expenditure incurred otherwise than in carrying on a business by a taxpayer who is not an individual; or

(b)

a taxpayer who was a small business taxpayer but not an STS taxpayer for that year.

11 Paragraph 82KZME(1)(b)

Note: The heading to section 82KZME is replaced by the heading " Expenditure under some agreements ".

12 Subsection 82KZME(1) (note 1)

13 Subsection 82KZME(1) (note 2)

New Business Tax System (Integrity and Other Measures) Act 1999

14 Item 9 of Schedule 7 (note)

Note: The heading to section 82KZMD is replaced by the heading " Business expenditure (except by an STS taxpayer) and non-business expenditure by non-individual ".

15 Application

(1) Subject to this item, the amendments made by this Schedule apply to assessments for the first year of income starting after 30 June 2001 and later years of income.
(2) The amendments made by items 5 and 14 apply to expenditure incurred by a taxpayer in a year of income after the taxpayer's year of income that includes 21 September 2002.