Taxation Laws Amendment Act 1994 (Cth)
This compilation was prepared on 23 September 2010
taking into account amendments up to Act No. 75 of 2010
The text of any of those amendments not in force
on that date is appended in the Notes section
The operation of amendments that have been incorporated may be
affected by application provisions that are set out in the Notes section
Prepared by the Office of Legislative Drafting and Publishing,
Attorney-General’s Department, Canberra
TABLE OF PROVISIONS
PART 1 - PRELIMINARY
Section
Short title [
Commencement [
PART 2 - AMENDMENT OF THE FRINGE BENEFITS TAX ASSESSMENT ACT 1986
Principal Act
Object of Division
Exempt benefits - certain travel to obtain medical treatment
Application of amendment
Object of Division
Interpretation
Application of amendments
Object of Division
Rebate for certain non-profit employers etc.
Application of amendment
PART 3 - AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936
Principal Act
Object of Division
General
Direct infrastructure borrowing - requirement relating to spending
of borrowed money
Direct infrastructure borrowing - requirement relating to use of
facilities on which borrowed money is to be spent
Application of amendments
Object of Division
Interpretation
Components in respect of superannuation pensions
Components in respect of rebatable ETP annuities
Application of amendments
Objects of Subdivision
Interpretation
Carer pension
Job search allowance
Newstart allowance
Sickness allowance
Special benefit
Insertion of new sections:
Exempt bereavement payment calculator AA
Exempt bereavement payment calculator AB
Application of amendments
Objects of Subdivision
Interpretation
Index of payments covered by Subdivision
Interpretation - supplementary amounts
Insertion of new sections:
Mature age allowance
Mature age partner allowance
Application of amendments
Objects of Division
Deemed assessment
Interpretation
Liability to pay instalments
Insertion of new Subdivision:
221AZMA. Medium taxpayer in large group treated as large
taxpayer
221AZMB. Instalment taxpayer groups
221AZMC. When one instalment taxpayer controls another
Penalty applies if estimate is too low
Due date for payment of tax
Application of amendments
Object of Division
Penalty for over-franking
Application of amendments
Object of Division
Insertion of new Subdivision:
Object
Outline of Subdivision
Definitions
Expenditure does not include expenditure on plant or
articles
Minister must set maximum approval limit
Minister may set closing date for applications
Provisional certificate criteria and procedures
Application for provisional certificate
Form etc. of application
Minister may request further information
Issue of provisional certificate
Contents of provisional certificate
When provisional certificate in force
Application for final certificate
Person dying - application for final certificate
Final certificate
Transactions between persons not at arm's length
Heritage conservation rebate
Heritage conservation rebate - partnerships
Heritage conservation rebate - trust estates
Heritage conservation rebate - corporate unit trusts and
public trading trusts
No deduction allowed in respect of work covered by a
certificate
Review of final certificate decision
Provision of information to recognised heritage bodies
Delegation by Minister
Disallowable instruments
Qualifying expenditure
Qualifying expenditure
Reduction of amounts for purposes of reduced cost base
Object of Division
Exemptions
Interpretation
Interpretation
Interpretation
Liability to withholding tax
Other interpretative provisions
Certain exempting provisions ineffective
Application of amendments
Transitional
Object of Division
Uplifted provisional tax amendment
Provisional tax on estimated income
Application of amendments
Object of Division
Deductions to be allowable for expenditure incurred in
gaining superannuation premiums
Deductions to be allowable for expenditure incurred in
gaining the investment component of certain premiums
Repeal of sections 111A and 111AA
Insertion of new sections:
Reinsurance recoveries and refunds of premiums not
assessable income
Deductions to be allowable for expenditure incurred in
obtaining superannuation premiums
Deductions to be allowable for expenditure incurred in
obtaining the investment component of certain premiums
Reduction in deductions that are not exclusively related to
producing assessable income
Deductions not allowable for expenditure incurred in gaining
certain premium income
Repeal of section and substitution of new section:
Deductions not allowable for expenditure incurred in
gaining certain premium income
Insertion of new section:
Deductions not allowable for benefits or reinsurance
premiums
Expenses of general management relating to producing assessable
income
Insertion of new section:
Expenses of general management incurred in obtaining
certain premiums
Apportionment of current year deductions between classes
Insertion of new section:
Reinsurance recoveries and refunds of premiums not
assessable income
Deductions allowable from assessable income of registered
organizations
Deductions to be allowable for expenditure incurred in
gaining superannuation premiums
Repeal of sections 116HA and 116HAA
Insertion of new sections:
Deductions to be allowable for expenditure incurred in
obtaining superannuation premiums
Deductions to be allowable for expenditure incurred in
obtaining the investment component of certain premiums
Deductions not allowable for benefits or reinsurance
premiums
Period allowed for furnishing amended returns without incurring
penalty
PART 4 - AMENDMENT OF THE SUPERANNUATION GUARANTEE (ADMINISTRATION)
ACT 1992
Principal Act
Object of Division
Repeal of section and substitution of new section:
Application of Act to Commonwealth
Insertion of new section:
Application of Act to Commonwealth authorities
Object of Division
Interpretation - general
Object of Division
Interpretation: notional earnings base where employer contributing
to superannuation fund for benefit of employee immediately before
21 August 1991
Insertion of new section:
Interpretation: notional earnings base where employer
contributing to Seafarers' Retirement Fund
Application of amendments
Object of Division
Interpretation - salary or wages
Object of Division
Reduction of charge percentage where contribution made to fund
other than defined benefit superannuation scheme
Object of Division
Reduction of charge percentage if contribution made to
fund other than defined benefit superannuation scheme
Object of Division
Reduction of charge percentage if contribution made to
fund other than defined benefit superannuation scheme
Object of Division
Certain contributions taken to be in accordance with
industrial award that specifies notional earnings base
Object of Division
Repeal of section and substitution of new section:
Payment to employee retired due to permanent incapacity
or invalidity
PART 5 - AMENDMENT OF THE TAXATION LAWS AMENDMENT (SUPERANNUATION)
ACT 1989
Principal Act
Object of Part
Amendment of section 17 of the Principal Act
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994 - LONG TITLE
An Act to amend the law relating to taxation
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 1
Short title [
1. This Act may be cited as the Taxation Laws Amendment Act 1994.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 2
Commencement [
2. (1) Subject to this section, this Act commences on the day on which it
receives the Royal Assent.
(2) Subdivision A of Division 4 of Part 3 is taken to have commenced on 1
July 1993.
(3) Subdivision B of Division 4 of Part 3 commences, or is taken to have
commenced, on 20 March 1994.
(4) Division 8 of Part 3 commences on 1 July 1994.
(5) Subsection 70(1) is taken to have commenced immediately after the
commencement of section 16 of the Taxation Laws Amendment (Superannuation)
Act 1989.
(6) Subsection 71(1) is taken to have commenced immediately after the
commencement of section 11 of the Taxation Laws Amendment Act (No. 5) 1989.
(7) Subsection 75(1) is taken to have commenced immediately after section
12 of the Taxation Laws Amendment Act (No. 5) 1989.
(8) Subsection 83(1) is taken to have commenced immediately after the
commencement of section 24 of the Taxation Laws Amendment (Superannuation)
Act 1989.
(9) Subsections 70(2), 71(2) and 83(2) are taken to have commenced
immediately after the commencement of the Taxation Laws Amendment (Foreign
Income) Act 1990.
(10) Section 112 is taken to have commenced immediately after the
commencement of section 17 of the Taxation Laws Amendment (Superannuation)
Act 1989.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 3
Principal Act
3. In this Part, "Principal Act" means the Fringe Benefits Tax Assessment
Act 1986.*1*
Fringe Benefits Tax Assessment Act 1986
*1* No. 39, 1986, as amended. For previous amendments, see Nos. 48 and 112,
1986; Nos. 23 and 145, 1987; No. 139, 1987 (as amended by Nos. 11 and 78,
1988); Nos. 6, 78, 95, 97 and 153, 1988; Nos. 2, 11, 97 and 107, 1989; Nos.
37, 58, 60 and 135, 1990; Nos. 48, 100 and 216, 1991; Nos. 35, 92, 101, 118,
191, 210, 223 and 237, 1992; and Nos. 17 and 18, 1993.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 4
Object of Division
4. The object of this Division is to remove the requirement that a foreign
location must be prescribed by regulations before an exemption from fringe
benefits tax is allowed in respect of a benefit paid to employees working at
that location to enable them to travel from their workplace to receive
medical treatment.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 5
Exempt benefits-certain travel to obtain medical treatment
5. Section 58L of the Principal Act is amended by omitting from
subparagraphs (1)(d)(i), (ii) and (iii) "prescribed".
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 6
Application of amendment
6. The amendment made by this Division:
(a) applies in respect of medical treatment provided on or after the day
on which this Division commences; and
(b) is taken also to have applied in respect of medical treatment provided
on or after 1 July 1986 and before the day referred to in paragraph (a) if:
(i) the Minister for Foreign Affairs certifies in writing that
the relevant foreign country is a developing country; or
(ii) that Minister certifies in writing that the relevant
foreign country ceased to be a developing country at a time stated in the
certificate, and the treatment was provided, or began to be provided, before
that time.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 7
Object of Division
7. The objects of this Division are:
(a) to ensure that a car parking benefit is valued only by reference to
fees charged by commercial parking station operators during daylight hours;
and
(b) to exclude kerbside parking meters from being regarded as a commercial
parking station.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 8
Interpretation
8. Section 136 of the Principal Act is amended by omitting from subsection
(1) the definitions of "all-day parking" and "commercial parking station"
and substituting respectively the following definitions:
"'all-day parking', in relation to a particular day, means parking of a
single car for a continuous period of 6 hours or more during a daylight
period on that day;
'commercial parking station', in relation to a particular day, means a
permanent commercial car parking facility where any or all of the car parking
spaces are available in the ordinary course of business to members of the
public for all-day parking on that day on payment of a fee, but does not
include a parking facility on a public street, road, lane, thoroughfare or
footpath paid for by inserting money in a meter or by obtaining a voucher;".
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 9
Application of amendments
9. The amendments made by this Division:
(a) in so far as they relate to fringe benefits tax, apply to assessments of
the fringe benefits taxable amount of the year of tax beginning on 1 April
1994 and of all later years of tax; and
(b) in so far as they relate to income tax, apply in relation to expenditure
incurred by a taxpayer on or after 1 July 1994.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 10
Object of Division
10. The object of this Division is to allow certain non-government schools
to receive a rebate against their liability to fringe benefits tax.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 11
Rebate for certain non-profit employers etc.
11. Section 65J of the Principal Act is amended by inserting after paragraph
(1)(b) the following paragraph:
"(ba) a school (including a pre-school but not including a tertiary
institution) that:
(i) although established by or under a law of the Commonwealth,
a State or a Territory, is not conducted for or on behalf of the Commonwealth,
a State or a Territory; and
(ii) is not conducted for the purpose of profit or gain to the
persons or body of persons conducting it;".
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 12
Application of amendment
12. The amendment made by this Division applies in relation to fringe
benefits tax (including instalments) for the year of tax beginning on 1 April
1994 and for all later years of tax.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 13
Principal Act
13. In this Part, "Principal Act" means the Income Tax Assessment Act
1936.*2*
Income Tax Assessment Act 1936
*2* 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, 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; Nos. 14, 25, 39, 49,
51, 54 and 103, 1983; Nos. 14, 42, 47, 63, 76, 115, 124, 165 and 174, 1984;
No. 123, 1984 (as amended by No. 65, 1985); Nos. 47, 49, 104, 123, 168 and
174, 1985; No. 173, 1985 (as amended by No. 49, 1986); Nos. 41, 46, 48, 51,
109, 112 and 154, 1986; No. 49, 1986 (as amended by No. 141, 1987); No. 52,
1986 (as amended by No. 141, 1987); No. 90, 1986 (as amended by No. 141,
1987); Nos. 23, 58, 61, 120, 145 and 163, 1987; No. 62, 1987 (as amended by
No. 108, 1987); No. 108, 1987 (as amended by No. 138, 1987); No. 138, 1987 (as
amended by No. 11, 1988); No. 139, 1987 (as amended by Nos. 11 and 78, 1988);
Nos. 8, 11, 59, 75, 78, 80, 87, 95, 97, 127 and 153, 1988; Nos. 2, 11, 56, 70,
73, 105, 107, 129, 163 and 167, 1989; No. 97, 1989 (as amended by No. 105,
1989); Nos. 20, 35, 45, 57, 58, 60, 61, 87, 119 and 135, 1990; Nos. 4, 5, 6,
48, 55, 100, 203, 208 and 216, 1991; Nos. 3, 35, 69, 70, 80, 81, 92, 98, 101,
118, 138, 167, 190, 191, 208, 223, 224, 227, 237 and 238, 1992; and Nos. 7,
17, 18, 27 and 32, 1993.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 14
Object of Division
14. The objects of this Division are:
(a) to allow tax-exempt infrastructure borrowings made after 17 August 1993
to be used to finance interest on direct infrastructure borrowings falling due
during the construction of the relevant infrastructure facility; and
(b) to extend the tax exemption to borrowings raised for the construction of
infrastructure facilities on certain leases of Crown land granted under
commercial contracts.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 15
General
15. Section 159GZZZU of the Principal Act is amended by omitting the
definition of "Crown lease" and substituting the following definition:
"'Crown lease' means a lease of land granted by:
(a) the Commonwealth, a State or a Territory; or
(b) an authority of the Commonwealth, a State, or a Territory, if, assuming
that the authority derived income at the time when the lease is granted, that
income would be exempt from tax because of a relevant exempting provision
(within the meaning of section 160K);".
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 16
Direct infrastructure borrowing-requirement relating to spending of
borrowed money
16. Section 159GZZZZA of the Principal Act is amended:
(a) by adding at the end of subsection (1) the following word and
paragraph:
"; or (c) subject to subsection (2A), the payment of interest, or of amounts
in the nature of interest, on a direct infrastructure borrowing.";
(b) by inserting after subsection (2) the following subsection:
"(2A) Spending money on the payment of interest, or of amounts in the nature
of interest, only qualifies under subsection (1):
(a) to the extent that the interest or those amounts relate to that part of
the period of the borrowing that occurs during the period (the 'construction
period') in which any of the facilities referred to in paragraph (1)(a), or
any of the facilities referred to in paragraph (1)(b) that are being
constructed, are under construction; and
(b) if the payment is made during the construction period.".
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 17
Direct infrastructure borrowing-requirement relating to use of
facilities on which borrowed money is to be spent
17. Section 159GZZZZB of the Principal Act is amended by omitting subsection
(2) and substituting the following subsection:
"(2) For the purposes of paragraph (1)(a), if the borrower intends that any
of the facilities concerned will be a fixture on land that is the subject of a
Crown lease and:
(a) if the Crown lease is a lease of land granted under a statutory law of
the Commonwealth, of a State or of a Territory-it can reasonably be expected,
when the borrowing takes place, that the Crown lease will run, or (because of
law, custom or otherwise) be extended or renewed to run, for at least the 25
year assessable use period; or
(b) in any other case-at the time (the 'relevant time') when the first of
the facilities begins to be constructed:
(i) if the term of the lease will not end before the last day of
the 25 year assessable use period-both the lessor and the lessee intend that
the lessee will continue to hold the lease throughout the whole of that period
on the same terms and conditions as those on which the lease is held at the
relevant time; or
(ii) if the term of the lease will end before the last day of
the 25 year assessable use period:
(A) the lessee has an option to renew the lease on the terms
and conditions referred to in subparagraph (i) for a period that will not end,
or has successive options to renew the lease on those terms and conditions for
periods the last of which will not end, before the last day of the 25 year
assessable use period; and
(B) both the lessor and the lessee intend that the lessee will
continue to hold the lease throughout the whole of that period on the same
terms and conditions as those on which the lease is held at the relevant
time;
then the borrower is taken to intend to own the facility concerned.".
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 18
Application of amendments
18. (1) The amendments made by sections 15 and 17 apply to borrowings that
took place after 23 June 1993.
(2) The amendment made by section 16 applies to borrowings that took place
after 17 August 1993.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 19
Object of Division
19. The object of this Division is to extend the rebate that applies to
superannuation pensions and roll-over annuities paid from a taxed source so
that it applies to:
(a) superannuation pensions and roll-over annuities bought by rolling over
an eligible termination payment representing the commutation of a deferred
annuity; and
(b) superannuation pensions and roll-over annuities bought by rolling over
an eligible termination payment representing the commutation of a pension from
an untaxed superannuation fund.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 20
Interpretation
20. Section 159SJ of the Principal Act is amended by adding at the end of
the definition of "commutation type ETP" in subsection (1) "but does not
include an ETP paid on the commutation of a deferred annuity as defined by
subsection 27A(1)".
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 21
Components in respect of superannuation pensions
21. Section 159SN of the Principal Act is amended by omitting from paragraph
(b) "in respect of a particular non-commutation type ETP".
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 22
Components in respect of rebatable ETP annuities
22. Section 159SV of the Principal Act is amended by omitting from paragraph
(b) "in respect of a particular non-commutation type ETP".
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 23
Application of amendments
23. The amendments made by this Division apply to pensions and annuities
that began to be paid on or after 1 July 1988.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 24
Objects of Subdivision
24. This Subdivision amends the income tax law to take account of recent
changes to the bereavement payments available under the social security law.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 25
Interpretation
25. Section 24A of the Principal Act is amended:
(a) by inserting after subparagraph (a)(vi) of the definition of
"bereavement Subdivision" the following subparagraphs:
"(via) Subdivision AA of Division 9 of Part 2.11;
(vib) Subdivision AA of Division 9 of Part 2.12;
(vic) Subdivision AA of Division 9 of Part 2.14;
(vid) Subdivision AA of Division 9 of Part 2.15;";
(b) by inserting ", 589A(1)(f), 660LA(1)(f), 728PA(1)(f), 768A(1)(f)" after
"501(1)(e)" in the definition of "exclusion provision".
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 26
Carer pension
26. Section 24ABF of the Principal Act is amended:
(a) by omitting subsection (2) and substituting the following subsection:
"(2) Subsection (1) has effect subject to:
(a) subsection (4) (which deals with taxpayers who derive bereavement lump
sum payments under section 239 of the Social Security Act 1991); and
(b) subsection (4A) (which deals with taxpayers who derive bereavement lump
sum payments under section 236A of the Social Security Act 1991).";
(b) by inserting after subsection (4) the following subsection:
"(4A) If a taxpayer derives a payment under section 236A of the Social
Security Act 1991:
(a) so much of the sum of that payment and other payments under the Social
Security Act 1991 derived by the taxpayer on pension paydays that occurred
during the bereavement lump sum period as does not exceed the tax-free amount
calculated using the exempt bereavement payment calculator AA in section
24ABZC is exempt; and
(b) the balance of the sum is not exempt.".
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 27
Job search allowance
27. Section 24ABL of the Principal Act is amended by adding at the end the
following subsections:
"(2) Payments under section 589B, 592C or 592D of the Social Security Act
1991 (which deal with bereavement payments) are exempt.
"(3) If a taxpayer derives a payment under section 589C of the Social
Security Act 1991:
(a) so much of the sum of that payment and other payments under the Social
Security Act 1991 derived by the taxpayer during the bereavement lump sum
period as does not exceed the tax-free amount calculated using the exempt
bereavement payment calculator AB in section 24ABZD is exempt; and
(b) the balance of the sum is not exempt.
"(4) If:
(a) a taxpayer's partner died; and
(b) the taxpayer would have been qualified for payments under a bereavement
Subdivision but for an exclusion provision (taxpayer's pension or allowance
increased on partner's death to such an extent that no bereavement payments);
and
(c) the taxpayer derives payments of job search allowance during the
bereavement period;
then those payments are not treated under subsection (1) but as follows:
(d) the supplementary amounts are exempt;
(e) so much of the balance as exceeds what would have been the balance
(payments less supplementary amounts) if the partner had not died is exempt;
(f) the rest of the balance is not exempt.".
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 28
Newstart allowance
28. Section 24ABM of the Principal Act is amended by adding at the end the
following subsections:
"(2) Payments under section 660LB, 660R or 660S of the Social Security Act
1991 (which deal with bereavement payments) are exempt.
"(3) If a taxpayer derives a payment under section 660LC of the Social
Security Act 1991:
(a) so much of the sum of that payment and other payments under the Social
Security Act 1991 derived by the taxpayer during the bereavement lump sum
period as does not exceed the tax-free amount calculated using the exempt
bereavement payment calculator AB in section 24ABZD is exempt; and
(b) the balance of the sum is not exempt.
"(4) If:
(a) a taxpayer's partner died; and
(b) the taxpayer would have been qualified for payments under a bereavement
Subdivision but for an exclusion provision (taxpayer's pension or allowance
increased on partner's death to such an extent that no bereavement payments);
and
(c) the taxpayer derives payments of newstart allowance during the
bereavement period;
then those payments are not treated under subsection (1) but as follows:
(d) the supplementary amounts are exempt;
(e) so much of the balance as exceeds what would have been the balance
(payments less supplementary amounts) if the partner had not died is exempt;
(f) the rest of the balance is not exempt.".
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 29
Sickness allowance
29. Section 24ABO of the Principal Act is amended by omitting subsection (2)
and substituting the following subsections:
"(2) Payments under section 728PB, 728X or 728Y of the Social Security Act
1991 (which deal with bereavement payments) are exempt.
"(3) If a taxpayer derives a payment under section 728PC of the Social
Security Act 1991:
(a) so much of the sum of that payment and other payments under the Social
Security Act 1991 derived by the taxpayer during the bereavement lump sum
period as does not exceed the tax-free amount calculated using the exempt
bereavement payment calculator AB in section 24ABZD is exempt; and
(b) the balance of the sum is not exempt.
"(4) If:
(a) a taxpayer's partner died; and
(b) the taxpayer would have been qualified for payments under a bereavement
Subdivision but for an exclusion provision (taxpayer's pension or allowance
increased on partner's death to such an extent that no bereavement payments);
and
(c) the taxpayer derives payments of sickness allowance during the
bereavement period;
then those payments are not treated under subsection (1) but as follows:
(d) the supplementary amounts are exempt;
(e) so much of the balance as exceeds what would have been the balance
(payments less supplementary amounts) if the partner had not died is exempt;
(f) the rest of the balance is not exempt.".
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 30
Special benefit
30. Section 24ABP of the Principal Act is amended by adding at the end the
following subsections:
"(2) Payments under section 768B, 771C or 771D of the Social Security Act
1991 (which deal with bereavement payments) are exempt.
"(3) If a taxpayer derives a payment under section 768C of the Social
Security Act 1991:
(a) so much of the sum of that payment and other payments under the Social
Security Act 1991 derived by the taxpayer on pension paydays that occurred
during the bereavement lump sum period as does not exceed the tax-free amount
calculated using the exempt bereavement payment calculator AB in section
24ABZD is exempt; and
(b) the balance of the sum is not exempt.
"(4) If:
(a) a taxpayer's partner died; and
(b) the taxpayer would have been qualified for payments under a bereavement
Subdivision but for an exclusion provision (taxpayer's pension or allowance
increased on partner's death to such an extent that no bereavement payments);
and
(c) the taxpayer derives payments of special benefit during the bereavement
period;
then those payments are not treated under subsection (1) but as follows:
(d) the supplementary amounts are exempt;
(e) so much of the balance as exceeds what would have been the balance
(payments less supplementary amounts) if the partner had not died is exempt;
(f) the rest of the balance is not exempt.".
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 31
Insertion of new sections
31. After section 24ABZB of the Principal Act the following sections are
inserted in Subdivision B of Division 1AA of Part III:
Exempt bereavement payment calculator AA
"24ABZC. The exempt bereavement payment calculator AA is as follows:
EXEMPT BEREAVEMENT PAYMENT CALCULATOR AA
This is how to work out the tax-free amount:
Method statement
Step 1: Work out the amount of payments under the Social Security Act 1991
that would have been derived by the taxpayer during the bereavement lump sum
period and that would have been exempt if:
(a) the severely handicapped person had not died; and
(b) the severely handicapped person had been under pension age;
the result is called the notional exempt amount for the taxpayer.
Step 2: Work out the amount of payments under the Social Security Act 1991
that would have been derived by the severely handicapped person during the
bereavement lump sum period if the severely handicapped person had not died:
the result is called the notional amount for the caree.
Step 3: Add up the notional exempt amount for the taxpayer and the notional
amount for the caree: the result is the tax-free amount.
Exempt bereavement payment calculator AB
"24ABZD. The exempt bereavement payment calculator AB is as follows:
EXEMPT BEREAVEMENT PAYMENT CALCULATOR AB
This is how to work out the tax-free amount:
Method statement
Step 1: Work out the amount of payments under the Social Security Act 1991
that would have been derived by the taxpayer during the bereavement lump sum
period and that would have been exempt if:
(a) the partner had not died; and
(b) the partner had been under pension age; and
(c) if immediately before the partner's death the couple were an illness
separated couple or a respite care couple-they were not such a couple;
the result is called the notional exempt amount for the taxpayer.
Step 2: Work out the amount of payments (if any) under the Social Security Act
1991 that would have been derived by the partner during the bereavement lump
sum period if the partner had not died; the result is called the notional
amount for the partner.
Step 3: Add up the notional exempt amount for the taxpayer and the notional
partner amount: the result is the tax-free amount.".
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 32
Application of amendments
32. The amendments made by this Subdivision apply to payments received under
the Social Security Act 1991 on or after 1 July 1993.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 33
Objects of Subdivision
33. This Subdivision amends the income tax law to take account of mature age
allowance and mature age partner allowance payments becoming available under
the social security law.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 34
Interpretation
34. Section 24A of the Principal Act is amended:
(a) by inserting after subparagraph (a)(vib) of the definition of
"bereavement Subdivision" the following subparagraph:
"(viba) Subdivision A of Division 11 of Part 2.12A;";
(b) by inserting ", 66OXKA(1)(e)" after "660LA(1)(f)" in the definition of
"exclusion provision".
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 35
Index of payments covered by Subdivision
35. Section 24AB of the Principal Act is amended by inserting in the Table
after the entry for job search allowance the following entry:
24ABMA
24ABMB".
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 36
Interpretation-supplementary amounts
36. Section 24ABA of the Principal Act is amended:
(a) by omitting from the Table in subsection (1) "Special needs widow B
pension" and substituting:
"Special needs widow B pension
Mature age allowance
Mature age partner allowance".
(b) by adding at the end the following subsection:
"(4) For the purposes of this section, a payment under section 660XKH of the
Social Security Act 1991 is taken to be a payment of a mature age partner
allowance.".
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 37
Insertion of new sections
37. After section 24ABM of the Principal Act the following sections are
inserted:
Mature age allowance
"24ABMA.(1) The treatment of payments of mature age allowance under Part
2.12A of the Social Security Act 1991 is as follows:
(a) the supplementary amount is exempt;
(b) the balance is not exempt.
"(2) Subsection (1) has effect subject to subsection (4) (which deals with
taxpayers who derive bereavement lump sum payments under section 660XKC of the
Social Security Act 1991).
"(3) Payments under sections 660XKB, 660XKE and 660XKG of the Social
Security Act 1991 (which deal with bereavement payments) are exempt.
"(4) If a taxpayer derives a payment under section 660XKC of the Social
Security Act 1991:
(a) so much of the sum of that payment and other payments under the Social
Security Act 1991 derived by the taxpayer on pension paydays that occurred
during the bereavement lump sum period as do not exceed the tax-free amount
calculated using the exempt bereavement payment calculator A in section 24ABZB
is exempt; and
(b) the balance of the sum is not exempt.
"(5) If:
(a) a taxpayer's partner died; and
(b) the taxpayer would have been qualified for payments under a bereavement
Subdivision but for an exclusion provision (taxpayer's pension or allowance
increased on partner's death to such an extent that no bereavement payments);
and
(c) the taxpayer derives payments of mature age allowance under Part 2.12A
of the Social Security Act 1991 on one or more of the 7 pension paydays after
the death;
then those payments on that payday or each of those paydays are not treated
under subsection (1) but as follows:
(d) supplementary amounts are exempt;
(e) so much of the balance as exceeds what would have been the balance
(payments less supplementary amounts) if the partner had not died is exempt;
(f) the rest of the balance is not exempt.
Mature age partner allowance
"24ABMB.(1) The treatment of payments of mature age partner allowance under
Part 2.12A of the Social Security Act 1991 is as follows:
Category Supplementary amounts Balance of payment
Taxpayer not under pension age
Not exempt
Taxpayer under pension age
Exempt
"(2) Subsection (1) has effect subject to subsection (4) (which deals with
taxpayers who derive bereavement lump sum payments under section 660XKL of the
Social Security Act 1991).
"(3) Payments under sections 660XKK and 660XKM of the Social Security Act
1991 (which deal with bereavement payments) are exempt.
"(4) If a taxpayer derives a payment under section 660XKL of the Social
Security Act 1991:
(a) so much of the sum of that payment and other payments under the Social
Security Act 1991 derived by the taxpayer on pension paydays that occurred
during the bereavement lump sum period as do not exceed the tax-free amount
calculated using the exempt bereavement payment calculator A in section 24ABZB
is exempt; and
(b) the balance of the sum is not exempt.
"(5) For the purposes of this section, a payment under section 660XKH of the
Social Security Act 1991 is taken to be a payment of a mature age partner
allowance.".
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 38
Application of amendments
38. The amendments made by this Subdivision apply to payments received under
the Social Security Act 1991 on or after 20 March 1994.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 39
Objects of Division
39. The objects of this Division are:
(a) to include in the new company tax instalment rules provision for
treating a medium taxpayer as large for instalment purposes, if the taxpayer
is part of a group of controlled instalment taxpayers; and
(b) to make it clear that, in calculating the base amount in relation to a
penalty under section 221AZP, only a taxpayer's first estimate for the current
year is relevant; and
(c) to make minor technical amendments of the company tax instalment rules.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 40
Deemed assessment
40. Section 166A of the Principal Act is amended by omitting from subsection
(2) "Subdivision" and substituting "Division".
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 41
Interpretation
41. Section 221AZH of the Principal Act is amended:
(a) by inserting "or because of section 221AZMA" after "221AZK" in the
definition of "large taxpayer";
(b) by inserting ", subject to section 221AZMA," after "means" in the
definition of "medium taxpayer".
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 42
Liability to pay instalments
42. Section 221AZK of the Principal Act is amended by inserting in paragraph
(3)(a) "subject to section 221AZMA," before "a taxpayer".
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 43
Insertion of new Subdivision
43. After Subdivision B of Division 1C of Part VI of the Principal Act the
following Subdivision is inserted:
"Subdivision BA-Instalment taxpayer groups
Medium taxpayer in large group treated as large taxpayer
"221AZMA. An instalment taxpayer is classified as large, and is not
classified as medium, if:
(a) apart from this section, it would be classified as medium; and
(b) at the beginning of the first day of month 9:
(i) it is a member of an instalment taxpayer group; and
(ii) the total of the respective amounts of likely tax of all
members of the group (including the taxpayer) is more than $300,000.
Instalment taxpayer groups
"221AZMB. An instalment taxpayer group consists of:
(a) an instalment taxpayer that:
(i) controls at least one other instalment taxpayer; but
(ii) is itself controlled by no other instalment taxpayer; and
(b) each instalment taxpayer that the first-mentioned taxpayer controls.
When one instalment taxpayer controls another
"221AZMC. For the purposes of section 221AZMB, an instalment taxpayer ('the
first taxpayer') controls another instalment taxpayer ('the second taxpayer')
if, and only if:
(a) the second taxpayer is a company and:
(i) the first taxpayer is in a position to cast, or control the
casting of, more than 50% of the maximum number of votes that might be cast at
a general meeting of the second taxpayer; or
(ii) the first taxpayer has the power to appoint or remove the
majority of the directors of the second taxpayer; or
(iii) the second taxpayer is, or a majority of its directors
are, accustomed or under an obligation, whether formal or informal, to act
according to the directions, instructions or wishes of the first taxpayer; or
(b) the second taxpayer is a trustee covered by any of paragraphs
221AZK(1)(b) to (f) and:
(i) the first taxpayer beneficially owns, or is able in any way,
whether directly or indirectly, to control the application of, more than 50%
of the interests in the trust property or in the trust income; or
(ii) the first taxpayer has the power to appoint or remove the
trustee of the trust; or
(iii) the trustee of the trust is accustomed or under an
obligation, whether formal or informal, to act according to the directions,
instructions or wishes of the first taxpayer; or
(c) in any case-the first taxpayer is taken, because of any other
application or applications of this subsection, to control an instalment
taxpayer that in turn is so taken to control the second taxpayer.".
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 44
Penalty applies if estimate is too low
44. Section 221AZP of the Principal Act is amended by omitting from
paragraph (1)(a) "the estimate" and substituting "its first or only estimate
for the current year".
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 45
Due date for payment of tax
45. Section 221AZT of the Principal Act is amended by inserting in paragraph
(a) "the" after "if".
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 46
Application of amendments
46. (1) The amendments made by sections 40, 44 and 45 apply for the 1994-95
year of income and all later years of income.
(2) The amendments made by sections 41, 42 and 43 apply for the 1995-96 year
of income and all later years of income.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 47
Object of Division
47. The object of this Division is to alter the rules about over-franking of
dividends so that liability for franking additional tax is not affected by an
initial payment of company tax that reduces franking deficit tax by the amount
calculated according to subsection 160AQJ(2).
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 48
Penalty for over-franking
48. (1) Section 160ARX of the Principal Act is amended by omitting from
subsection (1) "payable" and substituting "that would be payable apart from
subsection 160AQJ(2)".
(2) Section 160ARX of the Principal Act is amended by omitting from
subsection (2) "payable" and substituting "that would be payable apart from
subsection 160AQJ(2)".
(3) Section 160ARX of the Principal Act, as it applies in relation to a
company in relation to a franking year in relation to which the amendments
made by section 103 of the Taxation Laws Amendment Act (No. 3) 1993 do not
apply, is amended by omitting "payable" and substituting "that would be
payable apart from subsection 160AQJ(2)".
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 49
Application of amendments
49. The amendment made by subsection 48(1), (2) or (3) applies in relation
to a franking year of a company if, and only if:
(a) all of the following are the case:
(i) 14 December 1993 fell during that franking year;
(ii) the franked amount, class A franked amount, or class B
franked amount, as the case requires, of a dividend paid, during that franking
year, to a shareholder in the company exceeded the required franking amount,
class A required franking amount, or class B required franking amount, as the
case may be, for that dividend;
(iii) the declaration under section 160AQF of the Principal Act
that relates to the dividend mentioned in subparagraph (ii) of this paragraph
was made after 14 December 1993; or
(b) that franking year began after 14 December 1993.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 50
Object of Division
50. The object of this Division is to provide a rebate of tax for
expenditure on certain conservation work on heritage listed buildings and
structures.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 51
Insertion of new Subdivision
51. After Subdivision AAC of Division 17 of Part III of the Principal Act,
the following Subdivision is inserted:
"Subdivision AAD-Heritage conservation rebate
Object
"159U. The object of this Subdivision is to provide a rebate of tax for
expenditure on certain conservation work on heritage listed buildings and
structures.
Outline of Subdivision
"159UA. The following is a simplified outline of this Subdivision:
A: General
1. The Subdivision provides for rebates of tax for approved expenditure on
certain conservation work on heritage listed buildings and structures. The
expenditure must be at least $5,000. The entitlement to the rebate is set out
in section 159UQ (taxpayers other than partnerships or trustees), section
159UR (partnerships), section 159US (trust estates) and section 159UT
(corporate unit trusts and public trading trusts).
2. The Subdivision also contains a provision (subsection 159UU(1)) ensuring
that deductions are not obtained for amounts for which there is an entitlement
to a rebate.
3. Obtaining a rebate is a 2 step process.
B: Step 1-provisional certificate
1. The taxpayer applies for a provisional certificate (section 159UG)
2. The Minister then determines whether a provisional certificate is to be
issued to the taxpayer and, if it is, issues the certificate (sections 159UJ
and 159UK). The certificate specifies the maximum amount of expenditure that
will be eligible for a rebate. In making his or her decision, the Minister
will take into account criteria and procedures that he or she issues (sections
159UF and 159UJ).
3. The total of the amounts specified in certificates that the Minister
approves in a financial year is not to exceed a limit set by the Minister
(section 159UD). As a result, not all applications that may otherwise have
been approved will be able to be approved, and some taxpayers may get approval
for only part of the expenditure that they will incur.
C: Step 2-final certificate
1. When a taxpayer who has been issued with a provisional certificate
finishes the work, the taxpayer may apply for a final certificate (section
159UM). The work must be completed, and the final certificate applied for,
while the provisional certificate is in force.
2. If the work is to the standard specified in the provisional certificate
(section 159UO) and the expenditure is at least $5,000 (section 159UM), the
taxpayer will be issued with a final certificate.
Definitions
"159UB. In this Subdivision:
'Crown lease' means a lease granted by the Crown under a statutory law of
the Commonwealth, a State or a Territory;
'eligible heritage conservation works expenditure' has the meaning given by
paragraph 159UO(1)(b);
'final certificate' means a certificate issued under section 159UO;
'heritage conservation works' means works for the purpose of the
conservation, maintenance, preservation, restoration, reconstruction, or
adaptation, of a building, or other structure, where the building or
structure:
(a) is of cultural significance; and
(b) is listed in a heritage register declared in writing by the Minister to
be a recognised heritage register;
'maximum approval limit' has the meaning given by section 159UD;
'Minister' means the Minister for Communications and the Arts;
'provisional certificate' means a certificate issued under section 159UJ;
'provisional certificate criteria' means criteria determined under section
159UF;
'provisional certificate procedures' means procedures determined under
section 159UF;
'qualifying expenditure limit' means an amount specified under paragraph
159UK(d);
'recognised heritage body' means a body declared in writing by the Minister
to be a recognised heritage body;
'Secretary' means the Secretary to the Department of Communications and the
Arts.
Expenditure does not include expenditure on plant or articles
"159UC. In this Subdivision, 'expenditure' does not include expenditure on
plant or articles within the meaning of section 54.
Minister must set maximum approval limit
"159UD.(1) The Minister must, by written notice, specify an amount as the
maximum approval limit for each financial year in respect of applications for
provisional certificates.
"(2) The maximum approval limit for a financial year must be specified
before the Minister issues any provisional certificates in that financial
year.
"(3) The Minister must not, under paragraph 159UK(d), specify a qualifying
expenditure limit that would cause the maximum approval limit for that
financial year to be exceeded.
Minister may set closing date for applications
"159UE.(1) The Minister may, by notice published in the Gazette, specify a
day as the closing day for applications for provisional certificates in
relation to a financial year.
"(2) The day specified in the notice must be at least 21 days after the day
on which the notice is published in the Gazette.
"(3) The Minister may, but need not, consider an application given to the
Minister after the day specified in the notice.
Provisional certificate criteria and procedures
"159UF. (1) The Minister must, in writing, determine provisional certificate
criteria to be applied, and provisional certificate procedures to be complied
with, by the Minister in deciding:
(a) whether to issue provisional certificates; and
(b) how much to specify in provisional certificates as qualifying
expenditure limits in respect of expenditure proposed to be incurred on
heritage conservation works, so that each amount specified is at least $5,000
and that the total specified in respect of a financial year does not exceed
the maximum approval limit for the year; and
(c) the standards to state in provisional certificates in order for the
works to qualify for the issue of final certificates.
"(2) The criteria or procedures may require the Minister, in issuing
provisional certificates, to take into account:
(a) specified heritage conservation criteria; or
(b) recommendations of recognised heritage bodies; or
(c) any other factors.
Application for provisional certificate
"159UG. (1) A taxpayer may apply for a provisional certificate in relation
to expenditure that the taxpayer proposes to incur on heritage conservation
works.
"(2) An application may only be made if the taxpayer, either alone or with
another person or persons:
(a) holds a freehold interest in the land on which the building or structure
concerned is situated; or
(b) holds a Crown lease over the land on which the building or structure
concerned is situated.
Form etc. of application
"159UH. An application for a provisional certificate must:
(a) be in a form approved in writing by the Minister; and
(b) specify the amount of expenditure that the taxpayer proposes to incur on
the works; and
(c) be given to the Minister; and
(d) be accompanied by such other information as the Minister, by written
notice, requires.
Minister may request further information
"159UI. (1) The Minister may, in writing, ask a taxpayer to provide
additional information for the purpose of determining the taxpayer's
application.
"(2) The Minister does not have to consider, or further consider, the
taxpayer's application until the additional information has been provided.
Issue of provisional certificate
"159UJ.(1) If the Minister is satisfied that:
(a) the application complies with the requirements of sections 159UG and
159UH; and
(b) the provisional certificate procedures have been complied with; and
(c) the issue of a provisional certificate would be in accordance with the
provisional certificate criteria; and
(d) in accordance with the provisional certificate criteria, an amount would
be specified in the provisional certificate as the qualifying expenditure
limit;
the Minister must notify the taxpayer in accordance with subsection (2).
"(2) The Minister must notify the taxpayer in writing that a provisional
certificate will be issued if the taxpayer:
(a) pays to the Minister the prescribed fee (if any); and
(b) gives the Minister a statement, signed by the taxpayer, that the
taxpayer has obtained all building and other approvals that are necessary to
enable the work to be lawfully carried out.
"(3) If the taxpayer pays the fee (if any) and gives the Minister the
statement, the Minister must issue the provisional certificate to the
taxpayer.
"(4) If the Minister is not satisfied of the matters in subsection (1), the
Minister must notify the taxpayer, in writing, that the Minister refuses to
issue the certificate.
Contents of provisional certificate
"159UK. The provisional certificate must:
(a) state the taxpayer's name; and
(b) describe the heritage conservation works that the taxpayer proposes to
carry out in relation to the building or structure; and
(c) specify the standard to which the works must be completed in order to
qualify for the issue of a final certificate; and
(d) specify, in accordance with the provisional certificate criteria, the
qualifying expenditure limit in respect of the works.
When provisional certificate in force
"159UL.(1) A provisional certificate is in force from the time of issue
until the earliest of the following happens:
(a) the taxpayer disposes of his or her interest in the property; or
(b) the taxpayer dies or, being a partnership, company or trust, is
dissolved or otherwise terminated; or
(c) 24 months elapse from the date of the issue of the provisional
certificate without the Minister granting an extension under subsection (2);
or
(d) an extension under subsection (2) expires; or
(e) a final certificate is issued in respect of the work.
"(2) The Minister may, on written application by a taxpayer to whom a
provisional certificate has been issued, extend the period under paragraph
(1)(c) in relation to the certificate from 24 months to 27 months.
"(3) An application for an extension must be given to the Minister before
the end of the period of 23 months starting when the provisional certificate
is issued.
Application for final certificate
"159UM. (1) The taxpayer may apply to the Minister for a final certificate,
if the taxpayer has:
(a) completed the heritage conservation works covered by the provisional
certificate, to the standard specified in the provisional certificate, while
the provisional certificate was in force; and
(b) incurred expenditure of at least $5,000 during the period in carrying
out the works.
"(2) The application must:
(a) be in a form approved in writing by the Minister; and
(b) specify the amount of expenditure incurred by the taxpayer during the
period in carrying out the works; and
(c) be given to the Minister while the provisional certificate is in force;
and
(d) be accompanied by such other information as the Minister, by written
notice, requires.
Person dying-application for final certificate
"159UN. (1) If:
(a) an individual who holds a provisional certificate, or who is a partner
in a partnership that holds a provisional certificate, dies; and
(b) within 3 months after the death, a person mentioned in subsection (2)
makes a written application to the Minister for a final certificate;
for the purposes of this Subdivision, the application is taken to have been
made immediately before the death.
"(2) The application may only be made by:
(a) in any case-an executor, administrator or other personal representative
of the individual; or
(b) if a partnership holds the provisional certificate-one of the surviving
partners.
Final certificate
"159UO.(1) If the Minister is satisfied that the requirements of section
159UM are satisfied in relation to a provisional certificate, the Minister
must issue the taxpayer with a final certificate:
(a) stating the taxpayer's name; and
(b) specifying an amount, being so much of the amount specified by the
taxpayer under paragraph 159UM(2)(b) as does not exceed the qualifying
expenditure limit in the provisional certificate, as the eligible heritage
conservation works expenditure in respect of the heritage conservation works.
"(2) If the Minister is not satisfied that the requirements of section 159UM
are satisfied in relation to a provisional certificate, the Minister must
notify the taxpayer, in writing, that the Minister refuses to issue the final
certificate.
Transactions between persons not at arm's length
"159UP. If:
(a) a taxpayer applies to the Minister for a final certificate; and
(b) the Minister considers that the taxpayer and another party, or parties,
to any transaction involving the incurring of any of the expenditure mentioned
in the application were not dealing with each other at arm's length in
relation to the transaction; and
(c) the Minister considers that the amount of the expenditure exceeds the
amount that would have been incurred if the parties had been dealing with each
other at arm's length in relation to the transaction;
the Minister must, for the purposes of section 159UO, disregard the excess.
Heritage conservation rebate
"159UQ. If a taxpayer, other than a partnership or trustee, is issued with a
final certificate that specifies an amount of eligible heritage conservation
works expenditure, the taxpayer is entitled to a rebate of tax in the
taxpayer's assessment for the year of income in which the taxpayer applied for
the final certificate equal to 20% of the eligible heritage conservation works
expenditure.
Heritage conservation rebate-partnerships
"159UR. If:
(a) a partnership is issued with a final certificate that specifies an
amount of eligible heritage conservation works expenditure; and
(b) the partnership has net income for the year of income in which the
partnership applied for the final certificate;
each partner is entitled to a rebate of tax in the partner's assessment for
the year of income equal to:
x Partner's individual interest in
the net income of the partnership
of the year of income
Net income of the partnership of
the year of income
Heritage conservation rebate-trust estates
"159US.(1) This section applies if:
(a) the trustee of a trust estate is issued with a final certificate that
specifies an amount of eligible heritage conservation works expenditure; and
(b) the trust estate has net income for the year of income in which the
trustee applied for the final certificate; and
(c) the trust estate is not a corporate unit trust (within the meaning of
section 102J), or a public trading trust (within the meaning of section 102R)
in relation to the year of income.
"(2) If a share of the net income of the trust estate is included, under
section 97, in the assessable income of a beneficiary of the trust estate of
the year of income, the beneficiary is entitled to a rebate of tax in the
beneficiary's assessment for the year of income equal to:
x Beneficiary's share of the net
income of the trust estate of the
year of income
Net income of the trust estate
of the year of income
"(3) If the trustee is liable to be assessed under section 98 in respect of
a share, or shares, of the net income of the trust estate of the year of
income, the trustee is entitled, in respect of each such share, to a rebate of
tax in the trustee's assessment for the year of income equal to:
x Share of the net income of the
trust estate of the
year of income
Net income of the trust estate of
the year of income
"(4) If the trustee is liable to be assessed under section 99 or 99A in
respect of the net income, or a part of the net income, of the trust estate of
the year of income, the trustee is entitled to a rebate of tax in the
trustee's assessment for the year of income equal to:
x Net income, or part of the net
income, of the trust estate
of the year of income
Net income of the trust estate of
the year of income
Heritage conservation rebate-corporate unit trusts and public trading trusts
"159UT. If the trustee of a corporate unit trust (within the meaning of
section 102J), or a public trading trust (within the meaning of section 102R),
in relation to a year of income in which the trustee applies for a final
certificate is issued with the final certificate, the trustee is entitled to a
rebate of tax in the trustee's assessment for the year of income equal to 20%
of the eligible heritage conservation works expenditure specified in the
certificate.
No deduction allowed in respect of work covered by a certificate
"159UU.(1) If:
(a) while a provisional certificate is in force, expenditure is incurred by
a taxpayer in carrying out heritage conservation works that are covered by the
certificate; and
(b) apart from this subsection, a deduction or deductions would be allowable
from the taxpayer's assessable income of one or more years of income in
relation to that expenditure;
the deduction is, or the deductions are, only allowable in respect of so much
of the expenditure as exceeds the greater of nil and the amount worked out
using the formula:
Qualifying expenditure limit - Total expenditure previously
incurred by the taxpayer in
relation to the works while
the certificate was in force
"(2) If a provisional certificate ceases to be in force and either:
(a) the taxpayer did not apply for a final certificate in respect of the
works while the certificate was in force; or
(b) the Minister notifies the taxpayer that the Minister refuses to issue a
final certificate and:
(i) the time for making an application under section 159UV for
review of the refusal decision has expired without an application being made;
or
(ii) an application under section 159UV for review of the
refusal decision has been made and the Tribunal has dismissed the application
or affirmed the Minister's decision;
then:
(c) a deduction, equal to the total amount of deductions not allowed because
of subsection (1) for the year of income in which the provisional certificate
ceases to be in force, and all prior years of income, is allowable from the
taxpayer's assessable income of the year of income in which the provisional
certificate ceases to be in force; and
(d) the amount of any deduction not allowable because of subsection (1) that
would have been allowable for a later year of income is allowable for that
later year of income.
Review of final certificate decision
"159UV.(1) Applications may be made to the Tribunal for review of a decision
of the Minister:
(a) refusing to issue a final certificate; or
(b) specifying a particular amount as the amount of the eligible heritage
conservation works expenditure in a final certificate.
"(2) If the Minister makes a decision covered by subsection (1) and gives
written notice of the decision to the taxpayer, that notice must:
(a) in all cases-include a statement to the effect that, subject to the
Administrative Appeals Tribunal Act 1975, application may be made to the
Tribunal, by or on behalf of any person whose interests are affected by the
decision, for review of the decision; and
(b) except where subsection 28(4) of that Act applies-include a statement to
the effect that a request may be made under section 28 of that Act by or on
behalf of such a person for a statement:
(i) setting out the findings on material questions of fact; and
(ii) referring to the evidence or other material on which those
findings were based; and
(iii) giving the reasons for the decision.
"(3) A failure to comply with the requirements of subsection (2) in relation
to a decision does not affect the validity of the decision.
Provision of information to recognised heritage bodies
"159UW. (1) In spite of section 16, if the Minister considers that it would
assist in determining whether to issue a provisional certificate or final
certificate in relation to any heritage conservation works, the Minister may
give information about the works, that was provided under section 159UG or
159UI, to a recognised heritage body for the purpose of enabling that body to
provide advice to the Minister in relation to the works.
"(2) In spite of section 16, if the Minister considers that it would assist
in determining whether to issue a final certificate in relation to any
heritage conservation works, the Minister may give a copy of the provisional
certificate in relation to the works, or information about the works, that was
provided under section 159UM, to a recognised heritage body for the purpose of
enabling that body to provide advice to the Minister in relation to the issue
of the final certificate in relation to the works.
"(3) Any person who is given information under this section, and any person
or employee under his or her control, is subject to the same rights,
privileges, obligations and liabilities, under subsections 16(2) and (3) in
relation to that information, as if he or she were an officer within the
meaning of section 16.
Delegation by Minister
"159UX. The Minister may, by written notice, delegate to the Secretary, or
to a person holding or performing the duties of a Senior Executive Service
office in the Minister's Department, all or any of the Minister's powers under
this Subdivision other than:
(a) the Minister's power to make declarations for the purposes of the
definition of 'heritage conservation works' or 'recognised heritage body' in
section 159UB; and
(b) the Minister's powers under sections 159UD, 159UE and 159UF. In this
section 'Senior Executive Service office' has the same meaning as in the
Public Service Act 1922.
Disallowable instruments
"159UY. The following are disallowable instruments for the purposes of
section 46A of the Acts Interpretation Act 1901:
(a) a declaration by the Minister for the purposes of the definition of
'heritage conservation works' or 'recognised heritage body' in section 159UB;
(b) a notice by the Minister under section 159UD;
(c) provisional certificate criteria and provisional certificate procedures
issued by the Minister under section 159UF.".
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 52
Qualifying expenditure
52. Section 124ZB of the Principal Act is amended by adding at the end the
following subsection:
"(4) References in subsection (1) or (2) to expenditure of a capital nature
incurred in respect of the construction of a building, or of an extension,
alteration or improvement to a building, are to be read as not applying to
expenditure that is eligible heritage conservation expenditure within the
meaning of Subdivision AAD of Division 17.".
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 53
Qualifying expenditure
53. Section 124ZG of the Principal Act is amended by adding at the end the
following subsection:
"(5) References in subsection (2A) to expenditure of a capital nature
incurred in respect of the construction of a building, or of an extension,
alteration or improvement to a building, are to be read as not applying to
expenditure that is eligible heritage conservation expenditure within the
meaning of Subdivision AAD of Division 17.".
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 54
Reduction of amounts for purposes of reduced cost base
54. Section 160ZK of the Principal Act is amended:
(a) by inserting after subsection (1) the following subsection:
"(1A) The reference in paragraph (1)(a) to any part of the consideration, of
the costs or of the expenditure that has been allowed, or is allowable as a
deduction to the taxpayer in respect of any year of income is taken to include
an amount that, apart from subsections 124ZB(4) and 124ZG(5), would have been
so allowed or allowable under Division 10C or 10D of Part III.";
(b) by inserting after subsection (3) the following subsection:
"(3A) The reference in paragraph (3)(a) to any part of the consideration, of
the costs or of the expenditure that has been allowed, or is allowable as a
deduction to the partnership in respect of any year of income is taken to
include an amount that, apart from subsections 124ZB(4) and 124ZG(5), would
have been so allowed or allowable under Division 10C or 10D of Part III.".
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 55
Object of Division
55. The object of this Division is to remove the exemption from income tax
and withholding tax in respect of the income of certain savings banks.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 56
Exemptions
56. Section 23 of the Principal Act is amended by omitting paragraph (i).
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 57
Interpretation
57. Section 102M of the Principal Act is amended by omitting ", (i)" from
paragraph (a) of the definition of "exempt entity".
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 58
Interpretation
58. Section 121F of the Principal Act is amended by omitting "(i)," from
paragraph (a) of the definition of "relevant exempting provision" in
subsection (1).
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 59
Interpretation
59. Section 124ZA of the Principal Act is amended by omitting "(i)," from
the definition of "exempt body" in subsection (1).
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 60
Liability to withholding tax
60. Section 128B of the Principal Act is amended by omitting from paragraph
(3)(a) "(i),".
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 61
Other interpretative provisions
61. Section 160K of the Principal Act is amended by omitting "(i)," from
paragraph (a) of the definition of "relevant exempting provision" in
subsection (1).
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 62
Certain exempting provisions ineffective
62. Section 269B of the Principal Act is amended by omitting from subsection
(1) "(i),".
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 63
Application of amendments
63. (1) The amendments made by this Division, other than by section 60,
apply to assessments in respect of income of the 1994-95 year of income and of
all later years of income.
(2) Subject to section 64, the amendment made by section 60 applies to
income derived on or after 1 July 1994.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 64
Transitional
64. (1) Subject to subsection (2), section 128B of the Principal Act, as in
force immediately before its amendment by this Division, continues to apply to
income consisting of amounts paid under a contract entered into before 1 July
1994 as if paragraph 23(i) of that Act had not been omitted by this Division.
(2) Subsection (1) does not apply if the income consists of:
(a) interest paid in respect of loan money:
(i) that was borrowed by the borrower on or after 1 July 1994;
and
(ii) that, before 1 July 1994, the borrower was not under a
contractual obligation to borrow; or
(b) interest paid in respect of a loan resulting from a 'roll-over', on or
after 1 July 1994, of the whole or a part of a previous loan; or
(c) interest paid in respect of a period of extension of a period for which
loan money was lent where the extension occurred on or after 1 July 1994.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 65
Object of Division
65. The object of this Division is to exclude the low income rebate from the
provisional tax arrangements so that the rebate is provided only on
assessment.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 66
Uplifted provisional tax amendment
66. Section 221YCAA of the Principal Act is amended by inserting in
paragraph (2)(m) "159N," after "159L,".
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 67
Provisional tax on estimated income
67. Section 221YDA of the Principal Act is amended:
(a) by inserting in paragraph (1)(da) "(other than section 159N)" after
"Subdivision A";
(b) by inserting in subparagraph (2)(a)(ii) "(other than section 159N)"
after "Subdivision A".
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 68
Application of amendments
68. (1) The amendment made by section 66 applies to provisional tax
(including instalments) payable in respect of income of the 1994-95 year of
income and in respect of income of all later years of income.
(2) The amendment made by paragraph 67(a) applies to estimates of
provisional tax (including instalments) payable in respect of income of the
1993-94 year of income (other than estimates included in statements furnished
to the Commissioner before 14 December 1993) and to estimates of provisional
tax in respect of all later years of income.
(3) The amendment made by paragraph 67(b) applies to calculations of
provisional tax on the basis of estimates to which the amendment made by
paragraph 67(a) applies.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 69
Object of Division
69. The object of this Division is to clarify the deductions allowable to
life assurance companies and registered organizations.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 70
Deductions to be allowable for expenditure incurred in gaining
superannuation premiums
70. (1) Section 111A of the Principal Act is amended by adding at the end
the following subsection:
"(1A) For the purposes of the application of this section to assessments in
respect of income of the year of income in which 1 July 1988 occurred and to
assessments in respect of income of any later year of income that is derived
before the end of the 1989-90 year of income, the reference in subsection (1)
to superannuation premiums does not include a reference to premiums that are:
(a) received in respect of a superannuation policy issued by a life
assurance company in the course of a business carried on by it at or through a
permanent establishment of the company in a foreign country; or
(b) exempt from tax under paragraph 23(r).".
(2) Section 111A of the Principal Act is amended:
(a) by omitting subsection (2);
(b) by adding at the end the following subsection:
"(3) For the purposes of the application of this section to assessments in
respect of income of the 1990-91 year of income or to assessments in respect
of income of any later year of income, the reference in subsection (1) to
superannuation premiums does not include a reference to premiums that are:
(a) received in respect of eligible non-resident policies; or
(b) exempt from tax under section 23AH; or
(c) exempt from tax under paragraph 23(r).".
(3) Section 111A of the Principal Act is amended by adding at the end the
following subsection:
"(4) This section does not apply, and is taken not to have applied, to
superannuation premiums received on or after 1 January 1994.".
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 71
Deductions to be allowable for expenditure incurred in gaining the
investment component of certain premiums
71. (1) Section 111AA of the Principal Act is amended by inserting after
subsection (1) the following subsection:
"(1A) The reference in subsection (1) to premiums received in respect of
life assurance policies does not include a reference to premiums that are
received on or after 1 January 1990 and before the end of the 1989-90 year of
income and:
(a) are so received in respect of a life assurance policy issued by a life
assurance company in the course of a business carried on by it at or through a
permanent establishment of the company in a foreign country; or
(b) are exempt from tax under paragraph 23(r).".
(2) Section 111AA of the Principal Act is amended:
(a) by omitting from paragraph (1)(c) "amounts; or" and substituting
"amounts.";
(b) by omitting paragraphs (1)(d) and (e);
(c) by inserting after subsection (1A) the following subsection:
"(1B) For the purposes of the application of this section to assessments in
respect of income of the 1990-91 year of income or to assessments in respect
of income of later years of income, the reference in subsection (1) to
premiums received in respect of life assurance policies does not include a
reference to premiums that are:
(a) received in respect of eligible non-resident policies; or
(b) exempt from tax under section 23AH; or
(c) exempt from tax under paragraph 23(r).".
(3) Section 111AA of the Principal Act is amended by adding at the end the
following subsection:
"(4) This section does not apply, and is taken not to have applied, to
premiums received on or after 1 January 1994.".
(4) If, in relation to a particular life assurance company:
(a) as a result of an amendment made by this section, the premiums to which
section 111AA of the Principal Act as amended by this section applies in
respect of a year of income differ from the premiums to which that section
would have applied in respect of that year of income if the amendment had not
been made; and
(b) the company obtained a certificate under section 111AA of the Principal
Act in relation to that year of income;
section 111AA of the Principal Act as amended by this section is taken not to
have applied to premiums received by the company in that year of income
unless:
(c) after the commencement of this subsection the company furnishes an
amended return in respect of that year of income; and
(d) after that commencement but before the amended return is furnished (or
within such further period as the Commissioner allows) the company obtains a
further certificate under section 111AA of the Principal Act as amended by
this section with respect to the operation of that section in relation to that
year of income.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 72
Repeal of sections 111A and 111AA
72. Sections 111A and 111AA of the Principal Act are repealed.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 73
Insertion of new sections
73. Before section 111B of the Principal Act the following sections are
inserted:
Reinsurance recoveries and refunds of premiums not assessable income
"111AB. (1) If:
(a) a life assurance company has entered into a contract of reinsurance in
respect of the whole or any part of a life assurance policy; and
(b) a premium paid or payable by the company under the contract of
reinsurance is not an allowable deduction to the company because of paragraph
112BA(1)(c);
the company's assessable income does not include:
(c) any amount received or recovered by it under the contract of reinsurance
in respect of its liability under the life assurance policy, or the part of
that policy, that was reinsured; or
(d) any amount received or recovered by it that is a refund, or in the
nature of a refund, of the premium.
"(2) This section applies to assessments in respect of income of the year of
income in which 1 July 1988 occurred and to assessments in respect of income
of all later years of income.
Deductions to be allowable for expenditure incurred in obtaining
- SECT 84
Repeal of sections 116HA and 116HAA
84. Sections 116HA and 116HAA of the Principal Act are repealed.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 85
Insertion of new sections
85. Before section 116HB of the Principal Act the following sections are
inserted:
Deductions to be allowable for expenditure incurred in obtaining
superannuation premiums
"116HAB. (1) Subject to this section, the expenses mentioned in subsection
(2) that are incurred by a registered organization in the year of income in
connection with the obtaining of superannuation premiums are allowable
deductions.
"(2) The expenses to which subsection (1) applies are:
(a) salaries, wages, bonuses, commissions, allowances, or similar benefits,
in respect of the sale, renewal or continuation of superannuation policies;
and
(b) expenditure in recruiting or training people in the selling of
superannuation policies; and
(c) salaries, wages, allowances or similar benefits paid or payable to
employees of the organization to the extent to which the benefits relate to
the provision of administrative, technical or other assistance or support to
people who sell superannuation policies; and
(d) expenditure in developing, or engaging in research in connection with,
superannuation policies; and
(e) any other losses or outgoings to the extent to which they are incurred
in preparing, selling or issuing superannuation policies or collecting
superannuation premiums; and
(f) expenses in the general management of the organization's business to the
extent to which the expenses are incurred in gaining or producing
superannuation premiums.
"(3) If:
(a) a provision of this Act (other than this section or section 51, 116H or
116HAC) allows a deduction from a taxpayer's assessable income in respect of a
loss, outgoing or expenditure; and
(b) the provision extends to a taxpayer that is a registered organization;
the provision has effect in determining the deductions allowable to a
registered organization as if any reference in the provision to assessable
income included a reference to superannuation premiums.
"(4) Expenses incurred by a registered organization (other than expenses in
respect of which a deduction is allowable because of subsection (3)) that are
of a capital nature are not allowable deductions under this section.
"(5) If, assuming that:
(a) the Taxation Laws Amendment Act 1994 had not been enacted; and
(b) this Act provided that a registered organization's assessable income
included the superannuation premiums received by the organization;
a deduction would not have been allowed to a registered organization in
respect of a loss, outgoing or expenditure or a part of a loss, outgoing or
expenditure, then, a deduction is not allowable to the organization in respect
of the loss, outgoing or expenditure or the part of the loss, outgoing or
expenditure, as the case may be, under this section or under another provision
of this Act as it has effect because of this section.
"(6) A reference in this section to a deduction in respect of a loss,
outgoing or expenditure includes a reference to a deduction based on, or
calculated by reference to, all or a portion of the loss, outgoing or
expenditure.
"(7) In this section:
'superannuation premiums' do not include premiums that are exempt from tax
under section 23AH.
"(8) This section applies to expenses incurred, or to deductions in respect
of a loss, outgoing or expenditure incurred, on or after 1 January 1994.
Deductions to be allowable for expenditure incurred in obtaining the
investment component of certain premiums
"116HAC. (1) In this section:
'authorised actuary', in relation to a registered organization, means a
Fellow or an Accredited Member of the Institute of Actuaries of Australia;
'relevant life assurance premiums' means premiums received in respect of
life assurance policies other than:
(a) superannuation premiums; or
(b) premiums received in respect of eligible policies; or
(c) specified roll-over amounts; or
(d) premiums exempt from tax under section 23AH;
'relevant life assurance policy' means a life assurance policy in respect of
which premiums received are relevant life assurance premiums.
"(2) Subject to this section, the expenses mentioned in subsection (3)
incurred by a registered organization in the year of income in connection with
the obtaining of relevant life assurance premiums, to the extent to which the
expenses relate to the investment component of those premiums, are allowable
deductions.
"(3) The expenses to which subsection (2) applies are:
(a) salaries, wages, bonuses, commissions, allowances, or similar benefits,
in respect of the sale, renewal or continuation of relevant life assurance
policies; and
(b) expenditure in recruiting or training people in the selling of relevant
life assurance policies; and
(c) salaries, wages, allowances or similar benefits paid or payable to
employees of the organization to the extent to which the benefits relate to
the provision of administrative, technical or other assistance or support to
people who sell relevant life assurance policies; and
(d) expenditure in developing, or engaging in research in connection with,
relevant life assurance policies; and
(e) any other losses or outgoings to the extent to which they are incurred
in preparing, selling or issuing relevant life assurance policies or
collecting relevant life assurance premiums; and
(f) expenses in the general management of the organization's business to the
extent to which the expenses are incurred in gaining or producing relevant
life assurance premiums.
"(4) If:
(a) a provision of this Act (other than this section or section 51, 116H or
116HAB) allows a deduction from a taxpayer's assessable income in respect of a
loss, outgoing or expenditure; and
(b) the provision extends to a taxpayer that is a registered organization;
the provision has effect in determining the deductions allowable to a
registered organization as if any reference in the provision to assessable
income included a reference to the investment component of relevant life
assurance premiums.
"(5) Expenses incurred by a registered organization (other than expenses in
respect of which a deduction is allowable because of subsection (4)) that are
of a capital nature are not allowable deductions under this section.
"(6) If, assuming that:
(a) the Taxation Laws Amendment Act 1994 had not been enacted; and
(b) this Act provided that a registered organization's assessable income
included the investment component of relevant life assurance premiums received
by the organization;
a deduction would not have been allowed to a registered organization in
respect of a loss, outgoing or expenditure or a part of a loss, outgoing or
expenditure, then, a deduction is not allowable to the organization in respect
of the loss, outgoing or expenditure or the part of the loss, outgoing or
expenditure, as the case may be, under this section or under another provision
of this Act as it has effect because of this section.
"(7) 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, in the approved form, with respect to the operation
of this section, before the date of lodgment of the return of income of the
organization of the year of income or within such further time as the
Commissioner allows.
"(8) A reference in this section to a deduction in respect of a loss,
outgoing or expenditure includes a reference to a deduction based on, or
calculated by reference to, all or a portion of the loss, outgoing or
expenditure.
"(9) This section applies to expenses incurred, or to deductions in respect
of a loss, outgoing or expenditure incurred, on or after 1 July 1994.
Deductions not allowable for benefits or reinsurance premiums
"116HAD. (1) Despite any other provision of this Act, a deduction is not
allowable to a registered organization in respect of:
(a) a benefit paid or payable under a life assurance policy; or
(b) the inclusion of an amount in the organization's reserves for the
purpose of meeting any future liability (including a contingent liability) of
the organization to pay benefits to which paragraph (a) would apply; or
(c) a premium paid or payable by the organization in respect of the
reinsurance of the whole or any part of a life assurance policy; or
(d) an amount paid or payable to, or to an associate of, the holder of a
life insurance policy in settlement of a dispute as to the liability of the
organization under the policy.
"(2) A reference in subsection (1) to a benefit paid or payable under a life
assurance policy includes a reference to an amount paid or payable:
(a) in respect of a claim under the policy; or
(b) as consideration for, in connection with, or as a consequence of, the
surrender, cancellation, forfeiture, termination or disposal of the policy or
any rights under the policy; or
(c) in respect of a bonus under the policy; or
(d) in respect of an annuity under the policy; or
(e) that is a refund, or is in the nature of a refund, of a premium that is
not included in the organization's assessable income.
"(3) To remove any doubt, it is declared that a supplementary benefit (known
as a rider benefit) that is paid or payable in respect of a non-life assurance
risk (including an accident and disability risk, a sickness risk and a trauma
risk) and in respect of which the premiums received by the registered
organization that issued the relevant life assurance policy are included in
the organization's assessable income is not a benefit paid or payable under a
life assurance policy for the purposes of subsection (1).
"(4) If a registered organization makes a late payment in respect of an
amount that the organization is liable to pay under, or in relation to, a life
assurance policy, any interest paid or payable by the organization because of
the late payment is not a benefit paid or payable under the policy for the
purposes of subsection (1).
"(5) In this section:
'associate' has the same meaning as in subsection 26AAB(14).
"(6) This section applies to assessments in respect of income of the year of
income in which 1 July 1988 occurred and to assessments in respect of income
of all later years of income.".
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 86
Period allowed for furnishing amended returns without incurring penalty
86. (1) If:
(a) a taxpayer furnished a return of income before the commencement of this
section; and
(b) the return included a claim for a deduction under Division 8 or 8A of
the Principal Act; and
(c) when the return was made it was reasonably arguable that the deduction
was allowable under that Division; and
(d) that deduction is taken by the Principal Act as amended by this Division
not to have been allowable; and
(e) within 6 months (or such further period as the Commissioner allows)
after the day on which this Act received the Royal Assent the taxpayer
furnishes an amended return that does not include a claim for the deduction;
no penalty is payable by the taxpayer because of the claim for the deduction
but the Income Tax (Interest on Underpayments) Act 1986 applies in respect of
any underpayment of tax as a result of any increase in tax that is payable
because the deduction is not allowable.
(2) The question whether a matter was reasonably arguable as mentioned in
paragraph (1)(c) is to be determined in the same way as the question would be
determined under section 222C of the Income Tax Assessment Act 1936 if that
section were applicable.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 88
Principal Act
88. In this Part, "Principal Act" means the Superannuation Guarantee
(Administration) Act 1992.*3*
Superannuation Guarantee (Administration) Act 1992
*3* No. 111, 1992, as amended. For previous amendments, see No. 208, 1992; and
No. 7, 1993.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 89
Object of Division
89. The object of this Division is to ensure that Commonwealth authorities
are liable to pay superannuation guarantee charge.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 90
Repeal of section and substitution of new section
90. (1) Section 5 of the Principal Act is repealed and the following section
is substituted:
Application of Act to Commonwealth
"5. (1) The Commonwealth is not liable to pay superannuation guarantee
charge.
"(2) This Act applies in all other respects as if the Commonwealth were
liable to pay superannuation guarantee charge.
"(3) Part 8 has effect as if any superannuation guarantee charge in respect
of a superannuation guarantee shortfall of the Commonwealth had been paid on
14 August in the year following the year to which the charge relates.
"(4) Subsection 14ZX(4), section 14ZZ and Divisions 4 and 5 of Part IVC of
the Taxation Administration Act 1953 do not apply to the Commonwealth.".
(2) The amendment made by subsection (1) applies to assessments of
superannuation guarantee shortfall for the year beginning on 1 July 1993 and
for all later years.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 91
Insertion of new section
91. The following section is inserted at the end of Part 1 of the Principal
Act:
Application of Act to Commonwealth authorities
"5A. (1) In this section:
'Commonwealth authority' means an authority or body that is established by
or under a law of the Commonwealth.
"(2) If:
(a) a law, or a provision of a law, passed before the commencement of this
section purports to exempt a Commonwealth authority from liability to pay:
(i) taxes under the laws of the Commonwealth; or
(ii) certain taxes under the laws of the Commonwealth; and
(b) apart from this subsection, the exemption would apply to superannuation
guarantee charge;
that law or provision is taken, for the year beginning on 1 July 1993 and for
all later years, not to have exempted, or not to exempt, that authority from
liability to pay the charge.
"(3) If:
(a) a law, or a provision of a law, passed after the commencement of this
section purports to exempt a Commonwealth authority from liability to pay:
(i) taxes under the laws of the Commonwealth; or
(ii) certain taxes under the laws of the Commonwealth; and
(b) apart from this subsection, the exemption would apply to superannuation
guarantee charge;
the law or provision is not taken, for the year beginning on 1 July 1993 or
for any later year, to have exempted, or to exempt, the authority from
liability to pay the charge unless the law or provision expressly exempts the
authority from liability to pay the charge.".
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 92
Object of Division
92. The object of this Division is to provide that ordinary time earnings do
not include certain lump sum payments made to employees on the termination of
their employment.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 93
Interpretation-general
93. (1) Section 6 of the Principal Act is amended by omitting subparagraph
(a)(i) of the definition of "ordinary time earnings" in subsection (1)
and substituting the following subparagraph:
"(i) earnings in respect of ordinary hours of work other than earnings
consisting of a lump sum payment of any of the following kinds made to the
employee on the termination of his or her employment:
(A) a payment in lieu of unused sick leave;
(B) a payment in lieu of unused annual leave within the
meaning of subsection 26AC(1) of the Income Tax Assessment Act 1936;
(C) a payment in lieu of unused long service leave within the
meaning of subsection 26AD(1) of the Income Tax Assessment Act 1936; and".
(2) The amendment made by subsection (1) applies to assessments of
superannuation guarantee shortfall for the year beginning on 1 July 1993 and
for all later years.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 94
Object of Division
94. The object of this Division is to allow employers in the maritime
industry who contribute to the Seafarers' Retirement Fund to use the notional
earnings base.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 95
Interpretation: notional earnings base where employer contributing to
superannuation fund for benefit of employee immediately before 21 August 1991
95. Section 13 of the Principal Act is amended by inserting after paragraph
(a) of the definition of "reference earnings" in subsection (5) the
following paragraph:
"(aa) if the employer is contributing for the benefit of the employee in
relation to a contribution period to the superannuation fund known as the
Seafarers' Retirement Fund that was established by a trust deed on 3 May
1973-the benchmark rate stated in the trust deed; and".
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 96
Insertion of new section
96. After section 13 of the Principal Act the following section is
inserted:
Interpretation: notional earnings base where employer contributing to
Seafarers' Retirement Fund
"13A. (1) This section deals with the meaning of the expression 'notional
earnings base' in relation to an employee if:
(a) an employer is contributing for the benefit of the employee in relation
to a contribution period to the superannuation fund known as the Seafarers'
Retirement Fund that was established by a trust deed on 3 May 1973; and
(b) the employer was not so contributing immediately before 21 August 1991;
and
(c) section 13 would apply in relation to the employee if the employer had
been so contributing immediately before that date.
"(2) The expression 'notional earnings base' has, in relation to the
employee, the same meaning as in section 13.".
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 97
Application of amendments
97. The amendments made by sections 95 and 96 have effect as if those
sections had commenced on 1 July 1992, immediately after the commencement of
the Principal Act.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 98
Object of Division
98. The object of this Division is to make it clear that payments made to
contractors for their labour are treated as salary or wages.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 99
Interpretation-salary or wages
99. (1) Section 11 of the Principal Act is amended by inserting after
paragraph (1)(b) the following paragraph:
"(ba) payments under a contract referred to in subsection 12(3) that are
made in respect of the labour of the person working under the contract; and".
(2) The amendment made by subsection (1) has effect as if that subsection
had commenced on 1 July 1992, immediately after the commencement of the
Principal Act.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 100
Object of Division
100. The object of this Division is to allow an employer to pay to the
estate of an employee who has died contributions that could have been paid at
the time of the death.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 101
Reduction of charge percentage where contribution made to fund other
than defined benefit superannuation scheme
101. (1) Section 23 of the Principal Act is amended by inserting after
subsection (9) the following subsection:
(Contributions to estate of deceased employee)
"(9A) If:
(a) an employee has died; and
(b) the employer would, if the employee had not died, have made a
contribution to a complying superannuation fund for the benefit of the
employee; and
(c) the employer pays to the legal personal representative of the employee
an amount equal to the amount of the contribution that would have been paid;
the amount paid is taken for the purposes of this section to have been a
contribution made by the employer to a complying superannuation fund for the
benefit of the employee.".
(2) The amendment made by subsection (1) has effect as if that subsection
had commenced on 1 July 1992, immediately after the commencement of the
Principal Act.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 102
Object of Division
102. The object of this Division is to defer the introduction of quarterly
contributions until the 1994-95 year.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 103
Reduction of charge percentage if contribution made to fund other
than defined benefit superannuation scheme
103. (1) Section 23 of the Principal Act is amended by inserting after
subsection (6) the following subsection:
(Contribution made during a particular period may be taken into account for
any of several periods)
"(6A) A contribution to a complying superannuation fund made by an employer
for the benefit of an employee in the period starting on 1 July 1993 and
ending on 28 July 1994 may be taken into account under this section as if it
had been made in any of the contribution periods in the 1993-94 year.".
(2) The amendment made by subsection (1) applies to assessments of
superannuation guarantee shortfall for the year beginning on 1 July 1993 and
for all later years.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 104
Object of Division
104. The object of this Division is to ensure that employers are not liable
to superannuation guarantee charge in respect of amounts that are excluded
from the definition of salary or wages.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 105
Reduction of charge percentage if contribution made to fund other
than defined benefit superannuation scheme
105. (1) Section 23 of the Principal Act is amended by adding at the end the
following subsections:
(Reduction of notional earnings base if amount excluded from employee's salary
or wages)
"(11) If an employee's notional earnings base includes an amount of the
employee's salary or wages that, because of section 27 or 28, is not taken
into account for the purpose of making a calculation under section 18 or 19,
the employee's notional earnings base for the purposes of this section is
taken to be reduced by that amount.
(Reduction of ordinary time earnings if amount excluded from employee's salary
or wages)
"(12) If, because of section 27 or 28, an amount of an employee's salary or
wages is not taken into account for the purpose of making a calculation under
section 18 or 19, the employee's ordinary time earnings for the purposes of
this section are taken to be reduced by that amount.".
(2) The amendment made by subsection (1) has effect as if that subsection
had commenced on 1 July 1992, immediately after the commencement of the
Principal Act.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 106
Object of Division
106. The object of this Division is to clarify the treatment of flat dollar
superannuation contributions made by certain employers and to adjust notional
earnings bases for part-time employees.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 107
Certain contributions taken to be in accordance with industrial
award that specifies notional earnings base
107. (1) Section 25A of the Principal Act is amended:
(a) by adding at the end of subsection (1) the following word and
paragraphs:
"; and (c) the award was operative immediately before 21 August 1991; and
(d) immediately before that date:
(i) the award specified an amount of money as mentioned in
paragraph (a); and
(ii) that amount was required to be adjusted as mentioned in
paragraph (b).";
(b) by omitting paragraph (2)(b) and substituting the following paragraph:
"(b) the award has not, on or after 21 August 1991, been amended in a way
that has the effect of reducing an employee's notional earnings base;";
(c) by omitting subsection (3) and substituting the following subsection:
"(3) Subject to subsection (4), the employee's notional earnings base in
relation to a contribution period for the purposes of subsection 23(2) is:
(a) subject to paragraph (b), the adjustment earnings in respect of the
period; or
(b) if the employee is a part-time employee-the amount worked out using the
formula:
x Adjustment earnings
Full-time employee's hours
where:
'Number of hours employed' means the number of hours for which the employee is
employed in the period;
'Full-time employee's hours' means the number of ordinary hours of work for
which an equivalent full-time employee would have been employed in the period
under the award;
'Adjustment earnings' means the adjustment earnings in respect of the
period.".
(2) The amendments made by subsection (1) apply to assessments of
superannuation guarantee shortfall for the year beginning on 1 July 1993 and
for all later years.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 108
Object of Division
108. The object of this Division is to provide for payment of a shortfall
component to an employee who retires due to permanent incapacity or
invalidity.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 109
Repeal of section and substitution of new section
109. (1) Section 66 of the Principal Act is repealed and the following
section is substituted:
Payment to employee retired due to permanent incapacity or invalidity
"66. If:
(a) the employee is under 55 but has retired because of permanent incapacity
or permanent invalidity; and
(b) the former employee has lodged with the Commissioner:
(i) written notice of the retirement; and
(ii) a copy of a certificate signed by 2 registered medical
practitioners certifying that the former employee is unlikely to be able to
work again in a capacity for which he or she is reasonably qualified by
education, training or experience;
the Commissioner must pay the amount of the shortfall component to the former
employee.".
(2) The amendment made by subsection (1) applies to assessments of
superannuation guarantee shortfall for the year beginning on 1 July 1993 and
for all later years.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 110
Principal Act
110. In this Part, "Principal Act" means the Taxation Laws Amendment
(Superannuation) Act 1989.*4*
*4* No. 105, 1989.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 111
Object of Part
111. This Part makes an amendment that is consequential on the amendments
made by Division 10 of Part 3.
TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994
- SECT 112
Amendment of section 17 of the Principal Act
112. (1) Section 17 of the Principal Act is amended by omitting subsection
(2) of the section 112 that was inserted in the Income Tax Assessment Act 1936
by section 17 of the Principal Act and substituting the following subsection:
"(2) This section does not apply to superannuation premiums to which section
111A applies.".
(2) To remove any doubt, it is declared that, for all purposes (including
the purposes of section 65 of the Taxation Laws Amendment (Superannuation) Act
1989), the section that was inserted in the Income Tax Assessment Act 1936 by
section 17 of the Principal Act is taken to have been that section as amended
by subsection (1) of this section.
(3) This section does not affect the operation of paragraph 12(b) of the
Taxation Laws Amendment Act (No. 5) 1989 and, to remove any doubt, it is
declared that the subsection 112(2) of the Income Tax Assessment Act 1936 that
was omitted by that paragraph is taken to have been that subsection as amended
by subsection (1) of this section.
The
Act No. 56, 1994 amended as indicated in the Tables below.
Act | Number and year | Date of Assent | Date of commencement | Application, saving or transitional provisions |
56, 1994 | 7 Apr 1994 | |||
75, 2010 | 28 June 2010 | Schedule 6 (item 30): 29 June 2010 | — |
| |
Provision affected | How affected |
Div. 11 of Part 3........................ | rep. No. 75, 2010 |
S. 87......................................... | rep. No. 75, 2010 |
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0
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