Income Tax Assessment Amendment Act (No. 4) 1983 (Cth)

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Income Tax Assessment Amendment Act (No. 4) 1983

No. 103 of 1983

TABLE OF PROVISIONS

Section

1. Short title, &c.

2. Commencement

3. Interpretation

4. Exemptions

5. Exemption of certain pensions

6. Rebate in respect of certain dividends paid to residents

7. Deduction of certain expenditure on land used for primary production

8. Loss in deriving exempt income

9. Rebates for residents of isolated areas

10. Payments to which Subdivision applies

11. Partner not having control and disposal of share in partnership income

12. Rebate of tax for, or complementary tax payable by, certain primary producers

13. Repeal of sections 158a and 158aa and substitution of new section —

158a. Election that Division not apply

14. Rebates for dependants

15. General concessional rebates

16. Liability to provisional tax

17. Provisional tax on estimated income

18. Interpretation

19. Insertion of new section—

221yhaa. Special provisions relating to certain prescribed payments

20. Duties of payees

21. Duties of eligible paying authorities

22. Deduction exemption certificates

23. Repeal of section 221yhr and substitution of new section—

221yhr. Reporting exemptions

24. Offences

25. Provisional tax for 1983-84 year of income

Income Tax Assessment Amendment Act (No. 4) 1983

No. 103 of 1983

 

An Act to amend the law relating to income tax

[Assented to 23 November 1983]

BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:

Short title, &c.

1. (1) This Act may be cited as the Income Tax Assessment Amendment Act (No. 4) 1983.

(2) The Income Tax Assessment Act 19361is in this Act referred to as the Principal Act.

Commencement

2. (1) Subject to sub-section (2), this Act shall come into operation on the day on which it receives the Royal Assent.

(2) Section 3 shall come into operation on the day on which the Health Legislation Amendment Act (No. 2) 1983 receives the Royal Assent.

 

Interpretation

3. Section 6 of the Principal Act is amended by omitting the definition of “friendly society dispensary” in sub-section (1) and substituting the following definition:

“‘friendly society dispensary’ means an approved pharmaceutical chemist within the meaning of Part VII of the National Health Act 1953, being a friendly society, or a friendly society body, within the meaning of that Part;”.

Exemptions

4. (1) Section 23 of the Principal Act is amended—

(a) by inserting after paragraph (kb) the following paragraph:

“(kba) payments by way of an open employment incentive bonus under Part VIIIa of the Handicapped Persons Assistance Act 1974;”;

(b) by inserting in paragraph (s) “one-half of” before “the pay and allowances”;

(c) by inserting in paragraph (sa) “one-half of” before “the pay and allowances”; and

(d) by inserting in paragraph (sa) “one-half of” before “any gratuity”.

(2) The amendment made by paragraph (1) (a) applies to payments made on or after 1 October 1983.

(3) The amendments made by paragraphs (1) (b), (c) and (d) apply to pay and allowances in respect of service, and a gratuity in respect of a calling out, on or after 1 December 1983.

Exemption of certain pensions

5. (1) Section 23ad of the Principal Act is amended—

(a) by inserting “(other than section 98aa)” after “Division 5” in sub-paragraph (b) (ii) of the definition of “excepted payment” in sub-section (1);

(b) by inserting “(other than section 98aa)” after “including that Division” in sub-paragraph (b) (ii) of the definition of “excepted payment” in sub-section (1);

(c) by omitting from the definition of “excepted payment” in sub-section (1) all the words after paragraph (c) and substituting:

“but does not include—

(d) so much of a payment referred to in paragraph (a), (b) or (c) made to or in respect of a person as was included in the payment by reason that the person or the spouse of the person paid rent, lodging or board and lodging;

 

(e) in a case where a payment referred to in paragraph (a) or (b) was made to or in respect of a person who had another person dependent on him for support or who, or whose spouse, had the custody, care and control of a child or children—so much of the payment as is determined by the Commissioner to have been attributable to the dependent person or to the child or children, as the case may be; or

(f) in a case where a payment referred to in paragraph (c) was made to or in respect of a person who had the custody, care and control of a child or children or who was making regular contributions towards the maintenance of a child or children—so much of the payment as is determined by the Commissioner to have been attributable to the child or children;”;

(d) by omitting “or” from paragraph (b) of the definition of “prescribed person” in sub-section (1);

(e) by adding at the end of the definition of “prescribed person” in sub-section (1) the following word and paragraph:

“or (d) a man to or in respect of whom a spouse carer’s pension is payable;”;

(f) by inserting after the definition of “prescribed person” in sub-section (1) the following definition:

“‘spouse carer’s pension’ means—

(a) a pension payable under Division 6 of Part III of the Social Security Act 1947 to or in respect of a man whose wife, within the meaning of Part III of that Act, has attained the age of 60 years; or

(b) a pension payable under section 85aa of the Repatriation Act 1920 (including that section as applying by virtue of Division 5a, 6, 7, 8 or 9 of Part III of that Act or by virtue of the Repatriation (Special Overseas Service) Act 1962)to or in respect of a man whose wife, as defined by section 83 of the Repatriation Act 1920, has attained the age of 60 years;”;

(g) by inserting in sub-section (2) “or spouse carer’s pension” after “wife’s pension”; and

(h) by omitting from sub-section (2) “woman” and substituting “person”.

(2) The amendment made by paragraph (1) (c) applies to payments of instalments of pensions, allowances and benefits falling due on or after 1 March 1984.

(3) The amendments made by paragraphs (1) (d) to (1) (h) (inclusive) apply to payments made on or after 1 December 1983.

 

Rebate in respect of certain dividends paid to residents

6. (1) Section 46c of the Principal Act is repealed.

(2) The amendment made by sub-section (1) applies to assessments in respect of income of the year of income that commenced on 1 July 1983 and of all subsequent years of income.

Deduction of certain expenditure on land used for primary production

7. Section 75a of the Principal Act is amended by adding at the end thereof the following sub-section:

“(6) This section does not apply in relation to expenditure incurred by a taxpayer after 23 August 1983 unless the expenditure was incurred in pursuance of a contract entered into on or before that date.”.

Loss in deriving exempt income

8. Section 77 of the Principal Act is amended by adding at the end thereof the following sub-section:

“(4) A deduction is not allowable under this section in respect of a loss incurred in the year of income that commenced on 1 July 1983 or in any subsequent year of income.”.

Rebates for residents of isolated areas

9. Section 79a of the Principal Act is amended—

(a) by omitting from sub-section (2) “sub-section 79b (4)” and substituting “sub-sections (2a) and 79b (4)”;

(b) by inserting after sub-section (2) the following sub-section:

“(2a) The amount of any rebate that would, but for this sub-section, be allowable to a taxpayer under this section in his assessment in respect of income of a year of income shall be reduced by the amount of any prescribed allowance paid to the taxpayer in respect of the year of income.”; and

(c) by inserting after the definition of “census population” in sub-section (4) the following definition:

“‘prescribed allowance’ means an allowance paid in accordance with Part IIa of the Social Security Act 1947 or section 98aa of the Repatriation Act 1920 (including that section as applied by virtue of Division 5a, 6, 7, 8 or 9 of Part III of that Act or by virtue of the Repatriation (Special Overseas Service) Act 1962);”.

Payments to which Subdivision applies

10. Section 82kn of the Principal Act is amended by adding at the end thereof the following sub-section:

“(7) This Subdivision does not apply to an amount paid by a taxpayer after 23 August 1983 in respect of thermal insulation material in relation to a

 

dwelling unless the payment was made in pursuance of a contract entered into on or before that date.”.

Partner not having control and disposal of share in partnership income

11. (1) Section 94 of the Principal Act is amended—

(a) by omitting from sub-section (10a) “Where a taxpayer is not entitled to a rebate of tax under section 156 in his assessment in respect of income” and substituting “Where Division 16 does not apply in relation to the income of a taxpayer”;

(b) by omitting from sub-section (10b) “Where a taxpayer is entitled to a rebate of tax under section 156 in his assessment in respect of income” and substituting “Where Division 16 applies in relation to the income of a taxpayer”;

(c) by omitting from sub-section (12a) “Where a trustee of a trust estate is not entitled to a rebate of tax under section 156 in his assessment in respect of the net income of the” and substituting “Where Division 16 does not apply in respect of the net income of a”; and

(d) by omitting from sub-section (12b) “Where a trustee of a trust estate is entitled to a rebate of tax under section 156 in his assesment in respect of the net income of the” and substituting “Where Division 16 applies in respect of the net income of a”.

(2) The amendments made by sub-section (1) apply to assessments in respect of income of the year of income that commenced on 1 July 1983 and of all subsequent years of income.

Rebate of tax for, or complementary tax payable by, certain primary producers

12. (1) Section 156 of the Principal Act is amended—

(a) by omitting from paragraph (4) (b) “and Division 6aa” (wherever occurring) and substituting “, Division 6aa and Part VIIb”;

(b) by inserting after sub-section (4) the following sub-section:

“(4a) Where—

(a) this Division applies to the income of a taxpayer of a year of income, not being income in respect of which the taxpayer is liable to be assessed and to pay tax in the capacity of a trustee of a trust estate; and

(b) the amount of tax that would, apart from this section, section 94, Division 6aa and Part VIIb and but for any rebate or credit to which the taxpayer is entitled, be payable by the taxpayer in respect of his taxable income of the year of income if the notional rates declared by the Parliament for the purposes of this section were the rates of tax payable by the taxpayer in respect of that taxable income exceeds the amount of tax that would, apart from this section, section 94, Division 6aa and Part VIIb and but for any rebate or credit to which the taxpayer

 

is entitled, be payable by the taxpayer in respect of that taxable income,

the taxpayer is liable to pay complementary tax, at the rate declared by the Parliament for the purposes of this sub-section, on so much of the taxable income of the taxpayer of the year of income as is equal to the deemed taxable income from primary production of the taxpayer of the year of income.”;

(c) by omitting from sub-section (5) “and Division 6aa” (wherever occurring) and substituting “, Division 6aa and Part VIIb”; and

(d) by inserting after sub-section (5) the following sub-section:

“(5a) Where—

(a) this Division applies to a share of the net income of a trust estate of a year of income in respect of which a trustee is liable to be assessed and to pay tax in pursuance of sub-section 98 (1) or (2) or to the net income or a part of the net income of a trust estate of a year of income in respect of which a trustee is liable to be assessed and to pay tax in pursuance of section 99 (which share, net income or part, as the case may be, is in this sub-section referred to as the ‘eligible net income’); and

(b) the amount of tax that would, apart from this section, section 94, Division 6aa and Part VIIb and but for any rebate or credit to which the trustee is entitled, be payable by the trustee in respect of the eligible net income if the notional rates declared by the Parliament for the purposes of this section were the rates of tax payable by the trustee in respect of the eligible net income exceeds the amount of tax that would, apart from this section, section 94, Division 6aa and Part VIIb and but for any rebate or credit to which the trustee is entitled, be payable by the trustee in respect of the eligible net income,

the trustee is liable to pay complementary tax, at the rate declared by the Parliament for the purposes of this sub-section, on so much of the net income of the trust estate as is equal to the deemed net income from primary production.”.

(2) The amendments made by sub-section (1) apply to assessments in respect of income of the year of income that commenced on 1 July 1983 and of all subsequent years of income.

13. (1) Sections 158a and 158aa of the Principal Act are repealed and the following section is substituted:

Election that Division not apply

“158a. (1) A taxpayer may elect that this Division shall not apply in relation to income of the taxpayer of a year of income specified in the election and of all subsequent years of income.

“(2) An election in pursuance of sub-section (1) shall be made in writing and lodged with the Commissioner on or before the date of lodgment of the

 

return of income of the taxpayer for the year of income specified in the election or within such further time as the Commissioner allows.

“(3) Where a taxpayer makes an election under sub-section (1), this Division shall not apply in relation to income of the taxpayer of the year of income specified in the election or of any subsequent year of income.”.

(2) The amendment made by sub-section (1) applies to assessments in respect of income of the year of income that commenced on 1 July 1983 and of all subsequent years of income.

Rebates for dependants

14. (1) Section 159j of the Principal Act is amended by inserting after sub-section (3) the following sub-section:

“(3a) In the application of the definition of ‘resident’ in sub-section 6 (1) for the purposes of this section, a dependant included in class 1, 2, 3 or 4, and a child of the taxpayer being a dependant included in class 5, in the table in sub-section (2) shall be deemed to have a domicile in Australia at all times when the taxpayer has a domicile in Australia.”.

(2) The amendment made by sub-section (1) applies to assessments in respect of income of the year of income that commenced on 1 July 1982 and of all subsequent years of income.

(3) Nothing in section 170 of the Income Tax Assessment Act 1936 prevents the amendment of an assessment made before the commencement of this section for the purpose of giving effect to the amendment made by sub-section (1) of this section.

General concessional rebates

15. (1) Section 159n of the Principal Act is amended by omitting from sub-section (2) “$1,590” (wherever occurring) and substituting “$2,000”.

(2) The amendment made by sub-section (1) applies to assessments in respect of income of the year of income that commenced on 1 July 1983 and of all subsequent years of income.

Liability to provisional tax

16. Section 221yb is amended by inserting after sub-section (1) the following sub-section:

“(1a) Notwithstanding sub-section (1), a trustee of a trust estate is not liable to pay provisional tax in respect of income in respect of which the trustee is liable to be assessed and to pay tax under sub-section 98 (3) or (4).”.

Provisional tax on estimated income

17. Section 221yda of the Principal Act is amended—

(a) by omitting sub-paragraph (1) (d) (ia);

 

(b) by omitting paragraph (1) (daa) and substituting the following paragraph:

“(daa) the amount of the prescribed payments from which deductions have been, or will be, made in accordance with Division 3a during that year of income;”; and

(c) by omitting from sub-paragraph (2) (a) (i) “of prescribed payments,”.

Interpretation

18. (1) Section 221yha of the Principal Act is amended—

(a) by inserting after the definition of “deduction variation certificate” in sub-section (1) the following definition:

“‘first instalment payment’ means the first prescribed payment in an instalment series;”;

(b) by inserting after the definition of “householder notification form” in sub-section (1) the following definitions:

“‘instalment series’ means a series of 2 or more prescribed payments made, or liable to be made, in respect of the same invoice;

“‘invoice’ means a demand or request for payment;”;

(c) by inserting after the definition of “month” in sub-section (1) the following definitions:

“‘non-instalment payment’ means a prescribed payment other than a first instalment payment or a subsequent instalment payment;

“‘non-reportable payment’ means—

(a) a prescribed payment in respect of which a reporting exemption declaration is in force; or

(b) a prescribed payment in respect of which a reporting exemption approval number has been quoted to the eligible paying authority in accordance with an approval of the Commissioner that is in force under sub-section 221yhr (5) at the time of the quotation of the number;

“‘obligation transfer form’ means a document in a form published by the Commissioner in the Gazette for the purposes of this definition;”;

(d) by omitting “,a reporting exemption certificate” from the definition of “prescribed certificate” in sub-section (1);

(e) by omitting from sub-section (1) the definition of “reporting exemption certificate” and substituting the following definition:

“‘reporting exemption declaration’ means a document in a form that is published by the Commissioner in the Gazette for the purposes of this definition;”;

 

(f) by inserting after the definition of “structure” in sub-section (1) the following definition:

“‘subsequent instalment payment’ means a payment in an instalment series, other than the first instalment payment in the series;”; and

(g) by omitting paragraphs (6) (a) and (b) and substituting the following paragraphs:

“(a) in a case where the prescribed payment is not the first payment made to the payee by the eligible paying authority during the month (in this paragraph referred to as the ‘payment month’) in which the prescribed payment is made—the payee has, before the time of making of the first prescribed payment made to the payee by the eligible paying authority during the payment month, but not earlier than the commencement of the month immediately preceding the payment month, completed in respect of the payment month the part of a deduction form applicable to the payee and delivered the form to the eligible paying authority; and

(b) in any other case—the payee has, before the time of making of the prescribed payment but not earlier than the commencement of the month immediately preceding the month in which the prescribed payment is made, completed in respect of that last-mentioned month the part of a deduction form applicable to the payee and delivered the form to the eligible paying authority.”.

(2) The amendment made by paragraph (1) (g) applies in relation to any deduction form the applicable part of which is completed by a payee after the date of commencement of this section.

19. (1) After section 221yha of the Principal Act the following section is inserted:

Special provisions relating to certain prescribed payments

“221yhaa. (1) Where—

(a) a payee has, in respect of a month, completed the part of a deduction form applicable to the payee and delivered the form to an eligible paying authority; and

(b) no prescribed payment is made to the payee by the eligible paying authority during the month,

the payee shall be taken to have properly furnished a deduction form to the eligible paying authority in relation to prescribed payments made to the payee by the eligible paying authority during the first subsequent month in which a prescribed payment is made to the payee by the eligible paying authority.

 

“(2) Where—

(a) a payee has, or is, by virtue of sub-section (1), to be taken to have, properly furnished a deduction form to an eligible paying authority in respect of prescribed payments made to the payee by the eligible paying authority during a month; and

(b) a first instalment payment is made to the payee by the eligible paying authority during the month,

the payee shall be taken to have properly furnished a deduction form to the eligible paying authority in relation to prescribed payments made to the payee by the eligible paying authority during any subsequent month in which—

(c) a subsequent instalment payment in the same instalment series is made to the payee by the eligible paying authority; and

(d) no non-instalment payment or first instalment payment is made to the payee by the eligible paying authority.

“(3) Where—

(a) in respect of a month in a year of income, a payee completes the part of a deduction form applicable to the payee and delivers the form to an eligible paying authority; and

(b) after the form is received by the eligible paying authority, the eligible paying authority completes, and forwards to the payee, an obligation transfer form that specifies, as the month from which the obligation transfer form has effect, a month during the year of income (in this sub-section referred to as the ‘relevant month’), not being a month before the month in which the obligation transfer form is forwarded to the payee,

the payee shall be taken to have properly furnished a deduction form to the eligible paying authority in relation to prescribed payments made to the payee by the eligible paying authority during each month, being the relevant month or a subsequent month, in the year of income, in which a prescribed payment is made to the payee by the eligible paying authority.

“(4) Where a payee is taken, by virtue of this section, to have properly furnished a deduction form to an eligible paying authority in relation to prescribed payments made to the payee by the eligible paying authority during a month, section 211yhc does not apply in relation to prescribed payments made to the payee by the eligible paying authority during that month.”.

(2) The amendment made by sub-section (1) applies in relation to any deduction form the applicable part of which is completed by a payee after the date of commencement of this section.

Duties of payees

20. (1) Section 221yhc of the Principal Act is amended—

(a) by omitting from sub-section (1) “section 221yhr” and substituting “sections 221yhaa and 221yhr”;

 

(b) by omitting from sub-section (1) “7 days before the commencement of” and substituting “the commencement of the month immediately preceding”; and

(c) by omitting from sub-section (1) “in respect of the month” and substituting “in respect of that last-mentioned month”.

(2) The amendments made by sub-section (1) apply in relation to any deduction form the applicable part of which is completed by a payee after the date of commencement of this section.

Duties of eligible paying authorities

21. Section 221yhd of the Principal Act is amended—

(a) by omitting from paragraph (1) (b) “sub-sections (2) and (3)” and substituting “sub-section (2)”;

(b) by omitting sub-paragraph (1) (b) (i) and substituting the following sub-paragraph:

“(i) in relation to each payee who has properly furnished a deduction form to the eligible paying authority in relation to prescribed payments made to the payee by the eligible paying authority during the relevant month—

(a) in a case to which sub-sub-paragraph (b) does not apply—complete the part of the deduction form applicable to the eligible paying authority; or

(b) where the payee is taken, by virtue only of sub-section 221yhaa (1) or (2) or by virtue of sub-section 221yhaa (3), to have properly furnished a deduction form to the eligible paying authority in relation to prescribed payments made to the payee by the eligible paying authority during the relevant month—complete the part of a deduction form (in this sub-sub-paragraph referred to as the ‘relevant deduction form’) applicable to the payee by transcribing the particulars (not including any signature) contained in the last deduction form completed by the payee and delivered to the eligible paying authority and complete the part of the relevant deduction form applicable to the eligible paying authority;”;

(c) by omitting from sub-sub-paragraph (5) (a) (iii) (a) “and”;

(d) by inserting after sub-sub-paragraph (5) (a) (iii) (b) the following word and sub-sub-paragraph:

“; and (C) the eligible paying authority has no reasonable grounds for believing that the deduction variation certificate has been revoked,”; and

(e) by inserting after sub-section (5) the following sub-section:

“(5a) For the purposes of the application of sub-section (5) in relation to a prescribed payment to be made to a payee by an eligible

 

paying authority during a month in a case where the payee is taken, by virtue only of sub-section 221yhaa (1) or (2) or by virtue of sub-section 221yhaa (3), to have properly furnished a deduction form to the eligible paying authority in relation to prescribed payments made to the payee by the eligible paying authority during the month, there shall be taken to be included in that deduction form the same declaration by the payee as was included in the last deduction form completed by the payee and delivered to the eligible paying authority.”.

Deduction exemption certificates

22. Section 221yhq of the Principal Act is amended—

(a) by omitting paragraph (9) (b) and substituting the following paragraph:

“(b) if the payment is not to be made to the payee in person—

(i) the payee has declared in the deduction form that a deduction exemption certificate has been issued to the payee in respect of the period specified in the declaration and has not been revoked; and

(ii) the eligible paying authority has no reasonable grounds for believing that the deduction exemption certificate has been revoked,”; and

(b) by adding at the end thereof the following sub-section:

“(10) For the purposes of the application of sub-section (9) in relation to a prescribed payment to be made to a payee by an eligible paying authority during a month in a case where the payee is taken, by virtue only of sub-section 221yhaa (1) or (2) or by virtue of sub-section 221yhaa (3), to have properly furnished a deduction form to the eligible paying authority in relation to prescribed payments made to the payee by the eligible paying authority during the month, there shall be taken to be included in that deduction form the same declaration by the payee as was included in the last deduction form completed by the payee and delivered to the eligible paying authority.”.

23. (1) Section 221yhr of the Principal Act is repealed and the following section is substituted:

Reporting exemptions

“221yhr. (1) A person who is the holder of a deduction exemption certificate that is in force, being a deduction exemption certificate issued by virtue of the conditions specified in paragraphs 221yhq (2) (a) to (e) (inclusive) being satisfied or by virtue of sub-section 221yhq (4), may furnish to an eligible paying authority a reporting exemption declaration in relation to a financial year.

 

“(2) A reporting exemption declaration furnished to an eligible paying authority by a person in relation to a financial year is in force in relation to all prescribed payments made or liable to be made to the person by the eligible paying authority after the date on which the declaration is furnished and before—

(a) the end of the financial year; or

(b) the date on which the deduction exemption certificate in relation to which the declaration was furnished ceases to be in force,

whichever is the earlier.

“(3) Where an eligible paying authority receives a reporting exemption declaration furnished to the eligible paying authority under this section in relation to a financial year, the eligible paying authority shall—

(a) within 14 days after the end of the month in which the declaration is received, or within such further period as the Commissioner allows, forward the declaration to the Commissioner; and

(b) retain a copy of the declaration until the end of the financial year to which the declaration relates.

“(4) An eligible paying authority, other than a government body, who fails to comply with the requirements of sub-section (3) is guilty of an offence punishable on conviction by a fine not exceeding $2,000.

“(5) Where—

(a) a person is entitled to furnish a reporting exemption declaration to an eligible paying authority under sub-section (1);

(b) the person makes an application to the Commissioner, in a form approved by the Commissioner for the purposes of this sub-section, for an approval under this sub-section; and

(c) the Commissioner, having regard to—

(i) the purposes of this Division;

(ii) the special circumstances (if any) that exist in relation to the person; and

(iii) such other matters as he thinks fit,

considers it appropriate that the person should be granted an approval under this sub-section,

the Commissioner may, by notice in writing, grant an approval to the person to quote a specified number as a reporting exemption approval number, in a manner and form specified in the approval, to any eligible paying authority who makes a prescribed payment to the person while the approval remains in force.

“(6) An approval granted under sub-section (5) commences to be in force on a date specified in, or ascertained in accordance with, the approval and remains in force while the deduction exemption certificate to which the approval relates remains in force.

 

“(7) A person shall not—

(a) quote a number that is, or purports to be, a reporting exemption approval number except in accordance with an approval of the Commissioner that is in force in relation to the person under sub-section (5); or

(b) falsely represent that an approval of the Commissioner under sub-section (5) is in force in relation to the person.

Penalty: $5,000 or imprisonment for 12 months, or both.

“(8) For the purposes of the application of sub-section (7) in relation to a person, where an approval of the Commissioner granted to the person under sub-section (5) ceases to be in force by reason of the revocation of the deduction exemption certificate to which the approval relates, the approval shall be deemed to continue to be in force until the person receives notification of the revocation.

“(9) Where—

(a) a person has furnished a reporting exemption declaration to an eligible paying authority or has quoted a reporting exemption approval number to an eligible paying authority in accordance with an approval by the Commissioner under sub-section (5);

(b) after the declaration is furnished or the number is quoted, as the case may be, the person received notification of the revocation of the deduction exemption certificate in relation to which the declaration was furnished or the approval was granted, as the case may be;

(c) after the receipt of the notification, the person received a prescribed payment from the eligible paying authority; and

(d) the person did not, before receipt of the prescribed payment, notify the eligible paying authority of the revocation of the deduction exemption certificate,

the person is guilty of an offence punishable, on conviction, by a fine not exceeding $2,000.

“(10) Section 221yhc does not apply in relation to a person in relation to a prescribed payment that the person becomes entitled to receive from an eligible paying authority if the prescribed payment is a non-reportable payment.

“(11) Section 221yhd does not apply in relation to an eligible paying authority in relation to a prescribed payment that the eligible paying authority believes, on reasonable grounds, to be a non-reportable payment.”.

(2) Notwithstanding the repeal of section 221yhr of the Principal Act effected by sub-section (1) of this section, the provisions of Division 3a of Part VI of the Principal Act continue to have effect in relation to reporting exemption certificates issued under that section as if the amendments of that Division made by this Act had not been made.

 

Offences

24. Section 221yhu of the Principal Act is amended by omitting paragraph (f) and substituting the following paragraph:

“(f) by the production of a document other than—

(i) a prescribed certificate issued to him that is for the time being in force;

(ii) a reporting exemption declaration that is for the time being in force; or

(iii) a document in which is quoted a reporting exemption approval number,

cause an eligible paying authority to refrain from making a deduction from a prescribed payment or to make a deduction from a prescribed payment of an amount less than the amount applicable under the regulations in relation to the prescribed payment.”.

Provisional tax for 1983-84 year of income

25. (1) Subject to this section, for the purposes of the application of sub-section 221yc (1) of the Income Tax Assessment Act 1936 (in this section referred to as the “Assessment Act”) in ascertaining the amount of provisional tax payable by a taxpayer (in this section referred to as a “prescribed taxpayer”) in respect of the year of income that commenced on 1 July 1983 (in this section referred to as the “relevant year of income”), being a taxpayer who, if sections 46c, 159xa and 159znb of the Assessment Act were not applicable in relation to the year of income next preceding the relevant year of income (in this section referred to as the “next preceding year of income”) would, apart from this section, be liable to pay provisional tax calculated in accordance with sub-section 221yc (1) or (1a) of the Assessment Act in respect of the relevant year of income—

(a) if paragraph 221yc (1) (a) of the Assessment Act applies to the taxpayer—the amount of provisional tax payable by the taxpayer in respect of the relevant year of income by virtue of that paragraph is the amount ascertained by deducting from the amount of income tax that would have been assessed in respect of the amount that would have been the taxable income of the taxpayer of the next preceding year of income if—

(i) the taxable income of the taxpayer of the next preceding year of income had, except for the purpose of determining the notional income for the purpose of section 59ab, 86 or 158d of the Assessment Act, been increased by 11% (which taxable income, as so increased, is in this section referred to as the “adjusted taxable income”); and

(ii) where, for the purposes of Division 6aa of Part III of the Assessment Act—

(A) in the case of a taxpayer to whom Division 3 of Part II of the Income Tax (Rates) Act 1982 applied—the eligible

 

taxable income of the next preceding year of income exceeded $1,040; or

(b) in the case of a taxpayer to whom Division 4 of Part II of the Income Tax (Rates) Act 1982 applied—the eligible taxable income of the next preceding year of income exceeded $136,

that eligible taxable income had been increased by 11%;

(iii) for the purposes of section 156 of the Assessment Act, the deemed taxable income from primary production of the taxpayer of the next preceding year of income had been increased by 11%;

(iv) the Income Tax (Rates) Act 1982 as that Act, as amended by the Income Tax (Rates) Amendment Act (No. 2) 1983, applies to assessments in respect of the relevant year of income, had been in force and applied to assessments in respect of the next preceding year of income;

(v) the amendments to the Assessment Act made by sections 11 and 12 of this Act, as those amendments apply to assessments in respect of the relevant year of income, had been in force and applied to assessments in respect of the next preceding year of income;

(vi) where Division 16 of Part III of the Assessment Act applied in the taxpayer’s assessment in respect of the next preceding year of income—that Division had applied as if the conditions set out in sub-paragraphs (i) to (v) (inclusive) were applicable for the purposes of making that assessment other than for the purpose of determining the average income of the taxpayer for the purposes of the application of that Division; and

(vii) the taxpayer were not entitled to any rebate (other than any rebate under section 156 of the Assessment Act applicable in relation to the taxpayer in accordance with sub-paragraph (vi)) or credit in his assessment,

the sum of—

(viii) where the taxpayer was entitled to a rebate under section 23ab, 79a or 79b of the Assessment Act in his assessment in respect of the next preceding year of income—

(a) if sub-sub-paragraph (b) does not apply—the amount of the rebates to which the taxpayer was entitled under those sections in his assessment in respect of the next preceding year of income; or

(b) where the taxpayer was entitled, in his assessment in respect of the next preceding year of income, to a rebate under section 159j of the Assessment Act ascertained in accordance with sub-section (1b) of that section, a rebate under section 159k of the Assessment Act or a rebate under section 159l of the Assessment Act

 

ascertained in accordance with paragraph (2) (a) of that section—the amount of the rebates to which the taxpayer was entitled under sections 23ab, 79a and 79b of the Assessment Act in his assessment in respect of the next preceding year of income increased by such amount, not exceeding $33.50, as the Commissioner considers reasonable;

(ix) where the taxpayer was entitled to a rebate under section 159j, 159k or 159l of the Assessment Act in his assessment in respect of the next preceding year of income—

(a) if sub-sub-paragraph (B) does not apply—the amount of the rebates to which the taxpayer was entitled under sections 159j and 159l of the Assessment Act in his assessment in respect of the next preceding year of income; or

(b) where the taxpayer was entitled, in his assessment in respect of the next preceding year of income, to a rebate under section 159j of the Assessment Act ascertained in accordance with sub-section (1b) of that section, a rebate under section 159k of the Assessment Act or a rebate under section 159l of the Assessment Act ascertained in accordance with paragraph (2) (a) of that section—the amount of the rebates to which the taxpayer was entitled under sections 159j, 159k and 159l of the Assessment Act in his assessment in respect of the next preceding year of income increased by such amount, not exceeding $67.00, as the Commissioner considers reasonable;

(x) where the taxpayer was entitled to a rebate under section 159n of the Assessment Act in his assessment in respect of the next preceding year of income—the amount of the rebate (if any) to which he would have been so entitled under that section if the references in sub-section 159n (2) in respect of the next preceding year of income to $1,590 were references to $2,000 and the rate applicable under that section to assessments for that year had been 30%;

(xi) where the taxpayer was entitled, or where the Commisioner, having regard to the information included in the taxpayer’s return of income in respect of the next preceding year of income, is of the opinion that, but for the operation of section 159znc of the Assessment Act, the taxpayer would have been entitled, to a rebate under section 159zk of the Assessment Act in his assessment in respect of the next preceding year of income—the amount of the rebate to which the taxpayer was or would have been so entitled reduced by such amount (if any) as the Commissioner determines;

 

(xii) where the taxpayer was entitled to a rebate under section 160aaa of the Assessment Act in his assessment in respect of the next preceding year of income—the amount of the rebate to which, in the opinion of the Commissioner, he would have been so entitled under that section if the applicable references in paragraphs (g) and (h) of that section to $5,007 and $167 in respect of the next preceding year of income were references to $5,429 and $250 respectively; and

(xiii) the rebates and credits (other than a rebate under section 23ab, 46c, 79a, 79b, 156, 159j, 159k, 159l, 159n, 159xa, 159zk, 159znb or 160aaa of the Assessment Act) to which the taxpayer was entitled in his assessment in respect of income of the next preceding year of income; and

(b) if paragraph 221yc (1) (b) of the Assessment Act applies to the taxpayer—the amount of provisional tax payable by the taxpayer in respect of the relevant year of income by virtue of that paragraph is—

(i) in a case where—

(a) paragraph 221yc (1) (a) of the Assessment Act would apply to the taxpayer in relation to the relevant year of income but for sub-section 221ya (5) of that Act; and

(b) the taxpayer is a taxpayer to whom paragraph 221ya (5) (a) of the Assessment Act applies, but paragraph 221ya (5) (b) of that Act does not apply, in relation to the relevant year of income,

the amount that would be payable by the taxpayer under paragraph 221yc (1) (a) of the Assessment Act (as affected by paragraph (a) of this sub-section and by sub-sections (2) and (3) of this section) if sub-section 221yr (5) were not included in that Act and Division 16c of Part III of that Act were not applicable in relation to the next preceding year of income;

(ii) in a case where—

(a) paragraph 221yc (1) (a) of the Assessment Act would apply to the taxpayer in relation to the relevant year of income but for sub-section 221ya (5) of that Act; and

(b) the taxpayer is a taxpayer to whom paragraph 221ya (5) (b) of the Assessment Act applies, but paragraph 221ya (5) (a) of that Act does not apply, in relation to the relevant year of income,

the amount that would be payable by the taxpayer under paragraph 221yc (1) (a) of the Assessment Act (as affected by paragraph (a) of this sub-section and by sub-sections (2) and (3) of this section) if sub-section 221ya (5) were not included in that Act and the taxable income of the taxpayer of the next preceding year of income had been increased by the aggregate of the deductions allowed or allowable to the taxpayer under

 

sections 124zaf and 124zafa of that Act in his assessment in respect of the next preceding year of income;

(iii) in a case where—

(a) paragraph 221yc (1) (a) of the Assessment Act would apply to the taxpayer in relation to the relevant year of income but for sub-section 221ya (5) of that Act; and

(b) the taxpayer is a taxpayer to whom paragraphs 221ya (5) (a) and (b) of the Assessment Act apply in relation to the relevant year of income,

the amount that would be payable by the taxpayer under paragraph 221yc (1) (a) of the Assessment Act (as affected by paragraph (a) of this sub-section and by sub-sections (2) and (3) of this section) if—

(c) sub-section 221ya (5) were not included in the Assessment Act;

(d) Division 16c of Part III of the Assessment Act were not applicable in relation to the next preceding year of income; and

(e) the amount that, but for this sub-sub-paragraph, would have been the taxable income of the taxpayer of the next preceding year of income had been increased by the aggregate of the deductions allowed or allowable to the taxpayer under sections 124zaf and 124zafa of the Assessment Act in his assessment in respect of the next preceding year of income; and

(iv) in any other case—the amount that would be payable by the taxpayer under paragraph (a) of this sub-section, as increased by the amount that would be payable under sub-section (2) (as affected by sub-section (3)), if the provisions of that paragraph and those sub-sections applied to the taxpayer in relation to his income of the relevant year of income and—

(a) the taxable income of the taxpayer of the next preceding year of income had been equal to the amount that the Commissioner estimates would have been his provisional income if Division 16c of Part III of the Assessment Act were not applicable in relation to the next preceding year of income increased by the aggregate of the deductions (if any) allowed or allowable to the taxpayer under sections 124zaf and 124zafa of the Assessment Act in his assessment in respect of the next preceding year of income;

(b) for the purposes of Division 16 of Part III of the Assessment Act, the deemed taxable income from primary production of the taxpayer of the next preceding year of income were such amount (if any) as the Commissioner determines; and

 

(c) for the purposes of Division 6aa of Part III of the Assessment Act, the amount of the eligible taxable income of the taxpayer of the next preceding year of income were such amount (if any) as the Commissioner determines.

(2) Where, but for this sub-section and sub-section (3), an amount of provisional tax would be payable by a prescribed taxpayer by virtue of paragraph 221yc (1) (a) of the Assessment Act, as affected by sub-section (1), that amount shall, subject to sub-section (3), be increased by the amount that would have been payable as Medicare levy in respect of his income of the next preceding year of income if—

(a) the taxable income of the taxpayer of the next preceding year of income had been equal to the adjusted taxable income of the taxpayer; and

(b) Part VIIb of the Income Tax Assessment Act 1936 (as amended by the Income Tax Laws Amendment (Medicare Levy) Act 1983), other than paragraphs 251t (a) and (c) and section 251u, and the Medicare Levy Act 1983, other than sub-section 8 (2) and sections 9, 10 and 12, had been in force and had applied in relation to income of the next preceding year of income.

(3) The Commissioner may determine that provisional tax payable by a prescribed taxpayer in respect of income of the relevant year of income shall not be increased by virtue of sub-section (2), or may reduce the amount by which that provisional tax would, but for this sub-section, be increased by virtue of sub-section (2), where the Commissioner considers that the tax payable in respect of that income is likely to be less than the provisional tax that would, but for this sub-section, be payable in respect of that income by reason that no Medicare levy will be payable in respect of that income or the amount of Medicare levy that will be payable in respect of that income is less than the amount of Medicare levy calculated in accordance with sub-section (2).

——————

 

NOTE

1. No. 27, 1936, as amended. For previous amendments, see No. 88, 1936; No. 5, 1937; No. 46, 1938; No. 30, 1939; Nos. 17 and 65, 1940; Nos. 58 and 69, 1941; Nos. 22 and 50, 1942; No. 10, 1943; Nos. 3 and 28, 1944; Nos. 4 and 37, 1945; No. 6, 1946; Nos. 11 and 63, 1947; No. 44, 1948; No. 66, 1949; No. 48, 1950; No. 44, 1951; Nos. 4, 28 and 90, 1952; Nos. 1, 28, 45 and 81, 1953; No. 43, 1954; Nos. 18 and 62, 1955; Nos. 25, 30 and 101, 1956; Nos. 39 and 65, 1957; No. 55, 1958; Nos. 12, 70 and 85, 1959; Nos. 17, 18, 58 and 108, 1960; Nos. 17, 27 and 94, 1961; Nos. 39 and 98, 1962; Nos. 34 and 69, 1963; Nos. 46, 68, 110 and 115, 1964; Nos. 33, 103 and 143, 1965; Nos. 50 and 83, 1966; Nos. 19, 38, 76 and 85, 1967; Nos. 4, 60, 70, 87 and 148, 1968; Nos. 18, 93 and 101, 1969; No. 87, 1970; Nos. 6, 54 and 93, 1971; Nos. 5, 46, 47, 65 and 85, 1972; Nos. 51, 52, 53, 164 and 165, 1973; No. 216, 1973 (as amended by No. 20, 1974); Nos. 26 and 126, 1974; Nos. 80 and 117, 1975; Nos. 50, 53, 56, 98, 143, 165 and 205, 1976; Nos. 57, 126 and 127, 1977; Nos. 36, 57, 87, 90, 123, 171 and 172, 1978; Nos. 12, 19, 27, 43, 62, 146, 147 and 149, 1979; Nos. 19, 24, 57, 58, 124, 133, 134 and 159, 1980; Nos. 61, 92, 108, 109, 110, 111, 154 and 175, 1981; Nos. 29, 38, 39, 76, 80, 106 and 123, 1982; and Nos. 14, 25, 39, 49, 51 and 54, 1983.

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