Taxation (Deficit Reduction) Act (No. 2) 1993 (Cth)

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Taxation (Deficit Reduction) Act (No. 2) 1993

Act No. 55 of 1993 as amended

This compilation was prepared on 1 July 2000

taking into account amendments up to Act No. 58 of 2000

The text of any of those amendments not in force

on that date is appended in the Notes section

Prepared by the Office of Legislative Drafting,

Attorney-General’s Department, Canberra

Contents

An Act to amend the law relating to taxation

Part 1Preliminary1Short title [see Note 1]

This Act may be cited as the Taxation (Deficit Reduction) Act (No. 2) 1993.

2Commencement [see Note 1]
  1. (1)

    Subject to this section, this Act commences on the day on which it receives the Royal Assent.

  2. (2)

    Subdivision B of Division 3 of Part 3 commences on 1 July 1995.

  3. (3)

    Subdivision D of Division 3 of Part 3 commences on 1 July 2000.

    1. (4)

      Subdivision C of Division 2 of Part 4 commences on 1 July 2000.

Part 2Amendment of the Fringe Benefits Tax Act 1986 to give effect to an increase in the rate of FBT3Object of Part

The object of this Part is to increase the rate of fringe benefits tax from 48.25% to 48.4%.

4Principal Act

In this Part, Principal Act means the Fringe Benefits Tax Act 1986.

5Rate of tax

Section 6 of the Principal Act is amended by omitting “48.25%” and substituting “48.4%”.

6Application of amendments

The amendments made by this Part apply to the year of tax beginning on 1 April 1994 and all later years of tax.

Part 3Amendment of the Income Tax Assessment Act 1936Division 1Principal Act7Principal Act

In this Part, Principal Act means the Income Tax Assessment Act 1936.

Division 2Amendments to allow deductions to registered organisations for expenditure incurred in gaining the investment component of certain premiums8Object of Division

The object of this Division is to allow deductions to registered organisations for expenditure incurred in gaining the investment component of certain premiums.

9Interpretation

Section 116E of the Principal Act is amended by inserting the following definitions in subsection (1):

investment component, in relation to a premium received in respect of a life assurance policy, means so much of the premium as does not consist of a risk component.

risk component,in relation to a premium received in respect of a life assurance policy, means the risk component (if any) of the premium worked out on the basis specified in the regulations.

10Insertion of new section

After section 116HA of the Principal Act the following section is inserted:

116HAADeductions to be allowable for expenditure incurred in gaining the investment component of certain premiums

Premiums to which section applies

  1. (1)

    This section applies to premiums received in respect of life assurance policies other than:

    1. (a)

      superannuation premiums; or

    2. (b)

      premiums received in respect of eligible policies; or

    3. (c)

      specified roll-over amounts; or

    4. (d)

      premiums exempt from tax under section 23AH.

Assumption to be made in determining allowable deductions

  1. (2)

    For the purposes of determining the deductions allowable to a registered organization, the investment component of a premium to which this section applies is to be treated as assessable income.

Actuary’s certificate

  1. (3)

    This section does not apply to premiums derived by a registered organization in a year of income unless the organization obtains a certificate by an authorised actuary with respect to the operation of this section. The certificate must be in a form approved in writing by the Commissioner. The organization must obtain the certificate:

    1. (a)

      before the date of lodgment of the organization’s return of income of the year of income; or

    2. (b)

      within such further time as the Commissioner allows.

Definition

  1. (4)

    In this section:

authorised actuary means a Fellow or an Accredited Member of the Institute of Actuaries of Australia.

11Application of amendments

The amendments made by this Division apply in relation to expenditure incurred by a registered organisation on or after 1 July 1994.

Division 3Amendments relating to rebates for bonuses received by holders of life assurance policies issued by friendly societiesSubdivision AObject of Division12Object of Division

The object of this Division is to increase the rebates for bonuses paid to holders of life assurance policies issued by friendly societies.

Subdivision BIncrease for 1995‑96, 1996‑97, 1997‑98, 1998‑99 and 1999‑200013Rebate in respect of amounts assessable under section 26AH
  1. (1)

    Section 160AAB of the Principal Act is amended by omitting “30%”from paragraph (a) of the definition of statutory percentage in subsection (1) and substituting “33%”.

  2. (2)

    The amendments made by subsection (1) apply to amounts received (within the meaning of section 26AH of the Principal Act) on or after 1 July 1995.

Subdivision DIncrease for 2000‑2001 and later years15Rebate in respect of amounts assessable under section 26AH
  1. (1)

    Section 160AAB of the Principal Act is amended:

    1. (a)

      by omitting from subsection (1) the definition of statutory percentage;

    2. (b)

      by omitting from subsections (2) to (6) (inclusive) “the statutory percentage” (wherever occurring) and substituting “39%”.

  2. (2)

    The amendments made by subsection (1) apply to amounts received (within the meaning of section 26AH of the Principal Act) on or after 1 July 2000.

Part 4Amendment of the Income Tax Rates Act 1986Division 1Principal Act16Principal Act

In this Part, Principal Act means the Income Tax Rates Act 1986.

Division 2Registered organisationsSubdivision APreliminary17Object of Division

The object of this Division is to increase the rate of tax payable by a registered organisation in respect of its eligible insurance business.

Subdivision BRate for 1994‑95, 1995‑96, 1996‑97, 1997‑98, 1998‑99 and 1999‑200018Rates of tax payable by companies
  1. (1)

    Section 23 of the Principal Act is amended by omitting from paragraph (4)(b) “30%” and substituting “33%”.

  2. (2)

    The amendments made by subsection (1) apply to assessments in respect of income of the 1994-95 year of income, of the 1995-96 year of income, of the 1996‑97 year of income, of the 1997‑98 year of income, of the 1998‑99 year of income and of the 1999‑2000 year of income.

Subdivision CRate for 2000‑01 and later years19Rates of tax payable by companies
  1. (1)

    Section 23 of the Principal Act is amended by omitting from paragraph (4)(b) “33%” and substituting “39%”.

  2. (2)

    The amendment made by subsection (1) applies to assessments in respect of income of the 2000‑01 year of income and of all later years of income.

Notes to theTaxation (Deficit Reduction) Act (No. 2) 1993

Note 1

The Taxation (Deficit Reduction) Act (No. 2) 1993 as shown in this compilation comprises Act No. 55, 1993 amended as indicated in the Tables below.

Table of Acts

Act

Number

and year

Date

of Assent

Date of commencement

Application, saving or transitional provisions

Taxation (Deficit Reduction) Act (No. 2) 1993

55, 1993

27 Oct 1993

S. 13: 1 July 1995

Ss. 15 and 19: 1 July 2000 Remainder: Royal Assent

Taxation Laws Amendment (Budget Measures) Act 1995

94, 1995

27 July 1995

Schedule 3 (Part 2 (items 5, 6)): 1 July 1995

Schedule 9: Royal Assent

Remainder: 9 May 1995

—

Taxation Laws Amendment Act (No. 4) 1997

174, 1997

21 Nov 1997

Schedule 8: 1 July 1997

Remainder: Royal Assent

—

Taxation Laws Amendment Act (No. 2) 2000

58, 2000

31 May 2000

Schedule 7: Royal Assent (a)

—

(a) The Taxation (Deficit Reduction) Act (No. 2) 1993 was amended by Schedule 7 only of the Taxation Laws Amendment Act (No. 2) 2000, subsection 2(1) of which provides as follows:

  1. (1)

    Subject to this section, this Act commences on the day on which it receives the Royal Assent.

Table of Amendments

  1. ad. = added or inserted

    am. = amended rep. = repealed rs. = repealed and substituted

Provision affected

How affected

S. 2...........................................

am. No. 94, 1995; No. 174, 1997; No. 58, 2000

Heading to Subdiv. B of............

Div. 3 of Part 3

am. No. 94, 1995

rs. No. 174, 1997

Subdiv. C of Div. 3 of................

Part 3 (s. 14)

rep. No. 94, 1995

S. 14.........................................

rep. No. 94, 1995

Heading to Subdiv. D of ..........

Div. 3 of Part 3

rs. No. 174, 1997

S. 15.........................................

am. No. 174, 1997

Heading to Subdiv. B of............

Div. 2 of Part 4

am. No. 94, 1995

rs. No. 174, 1997; No. 58, 2000

S. 18.........................................

am. No. 94, 1995; No. 174, 1997; No. 58, 2000

Heading to Subdiv. C of............

Div. 2 of Part 4

rs. No. 174, 1997; No. 58, 2000

Subdiv. C of Div. 2 of................

Part 4 (s. 19)

rs. No. 94, 1995

S. 19.........................................

rs. No. 94, 1995

am. No. 174, 1997; No. 58, 2000

Subdiv. D of Div. 2 of ..............

Part 4 (s. 20)

rep. No. 94, 1995

S. 20.........................................

rep. No. 94, 1995

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