Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT (FOREIGN INCOME) ACT 1990 No. 5 of 1991 - SECT 29

29. After section 160AE of the Principal Act the following section is
inserted: Passive income

"160AEA. (1) In this Division: `passive income', in relation to a taxpayer, in
relation to a year of income, means:

   (a)  dividends (within the meaning of section 6) paid to the taxpayer in
        the year of income; or

   (b)  unit trust dividends (within the meaning of Division 6B or 6C) paid to
        the taxpayer in the year of income; or

   (c)  a distribution made to the taxpayer in the year of income where the
        distribution is taken to be a dividend because of section 47; or

   (d)  an amount that is taken to be a dividend paid to the company in the
        year of income because of section 47A or 108; or

   (e)  interest income derived by the taxpayer in the year of income; or

   (f)  annuities derived by the taxpayer in the year of income; or

   (g)  rental income derived by the taxpayer in the year of income; or

   (h)  royalties derived by the taxpayer in the year of income; or

   (j)  an amount derived by the taxpayer in the year of income as
        consideration for the assignment, in whole or in part, of any
        copyright, patent, design, trade mark or other like property or right;
        or

   (k)  profits of a capital nature that accrued to the taxpayer in the year
        of income; or

   (m)  passive commodity gains that accrued to the taxpayer in the year of
        income; or

   (n)  an amount included in the assessable income of the taxpayer of the
        year of income under section 102AAZD, 456, 457, 458 or 459; but does
        not include offshore banking income.

"(2) In this Division: `modified passive income', in relation to a taxpayer,
in relation to a year of income, means amounts that would be passive income of
the taxpayer of the year of income if that passive income did not include
interest income of the taxpayer of the year of income.

"(3) In this section: `commodity' means any thing that is capable of delivery
under an agreement for its delivery, but does not include an instrument
creating or evidencing a chose in action; `passive commodity gain', in
relation to a taxpayer, in relation to a year of income, means a gain realised
by the taxpayer in a year of income from disposing of a passive commodity
investment; `passive commodity investment', in relation to a taxpayer, means:

   (a)  either of the following contracts:

   (i)  a forward contract in respect of a commodity;

   (ii) a futures contract in respect of a commodity; or

   (b)  a right or option in respect of such a contract; except where both of
        the following conditions are satisfied:

   (c)  the taxpayer carries on:

   (i)  a business of producing or processing the commodity; or

   (ii) a business that involves the use of the commodity as a raw material in
        a production process;

   (d)  the contract, right or option relates to the carrying on of that
        business; `rent' has the same meaning as in Part X; `rental income'
        means income derived by way of rent.".