Taxation Laws Amendment Act (No. 2) 1993 (Cth)

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Taxation Laws Amendment Act (No. 2) 1993

Act No. 18 of 1993 as amended

This compilation was prepared on 24 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

1.

Short title [see Note 1]

2.

Commencement [see Note 1]

PART 2 - AMENDMENT OF THE FRINGE BENEFITS TAX ASSESSMENT ACT 1986

Division 1 - Principal Act

3.

Principal Act

Division 2 - Amendment relating to child care access

4.

Exempt residual benefits

5.

Application

6.

Transitional (change of program name)

PART 3 - AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

Division 1 - Principal Act

7.

Principal Act

Division 2 - Amendments to improve the readability of

section 78 of the Principal Act(which deals with

deductions for gifts, pensions etc.)

Subdivision A - New section 78

8.

Repeal of section and substitution of new section:

78.

Deductions for gifts, pensions etc.

Subdivision B - Consequential amendments

9.

Interpretation

10. Certain gifts not to be allowable deductions

11. Non-resident family trusts

12. Non-resident family trusts

Subdivision C - Application of amendments

13. Application

14. Transitional - approvals and declarations etc.

Division 3 - Amendment relating to migration information

15. Officers to observe secrecy

Division 4 - Amendments relating to service with UN forces

and other bodies

16. Income of certain persons serving with an armed force under

the control of the United Nations

17. Exemption of pay and allowances of members of Defence Force

serving in operational areas

18. Insertion of new sections:

23AD.

Exemption of pay and allowances of Defence Force members

performing certain overseas duty

23ADA.

Exemption of pay and allowances of AFP members serving with

the United Nations Transitional Authority in Cambodia

19. Rebates for members of Defence Force serving overseas

Division 5 - Development allowance

20. Subdivision not to apply to certain other property

21. Assets to which Part applies

22. Application

Division 6 - General investment allowance

Subdivision A - Insertion of new Subdivision

23. Insertion of new Subdivision:

Subdivision BA - General investment allowance

82AR.

Object

82AS.

How to work out entitlement etc. to general investment allowance

82AT.

Change to main deduction provision

82AU.

Change to dates

82AV.

Change to section 82AC (limitation of deduction in case of

leased property)

82AW.

Changes to section 82AD (transfer of deductions)

82AX.

Subdivision B object not applicable

Subdivision B - Consequential amendments

24. Calculation of taxable income

25. Full-year deductions and partnership deductions

26. Calculation of depreciation

27. Limitation of deduction in case of leased property

28. Effect of application of Division on certain deductions etc.

29. Amendment of assessments

Division 7 - Amendments relating to foreign investment

Subdivision A - Overriding subsection 96A(1)

30. Certain provisions not to apply in respect of interests in

non-resident trust estates to which Part XI applies

Subdivision B - Capital gains tax references to section 23AK

31. Capital gains and capital losses

Subdivision C - FIF attribution account payments and CFCs

32. Interpretation

33. Additional notional exempt income - unlisted or listed country CFC

34. Insertion of new section:

607A.

Grossed-up amount of a FIF attribution debit

Subdivision D - Trading stock

35. Definitions

36. Notional deductions - expenditures in acquiring trading stock

Subdivision E - Exclusion of dual residents

37. Taxpayers to whose interests in FIFs and FLPs this Part applies

Subdivision F - Net income of partnerships and trusts

38. Taxpayers to whose interests in FIFs and FLPs this Part applies

39. Insertion of new section:

485A.

Applying operative provision in working out net income of

partnership or trust estate

Subdivision G - Exempt non-portfolio dividends received by CFC

40. Reduction of foreign investment fund income because of interim

dividend or interim distribution of trust income

Subdivision H - Calculation method elections

41. Methods applicable in relation to a FIF

42. Procedure to be followed

43. Procedure to be followed

Subdivision I - Certain foreign investment fund amount

amendments

44. Step 1 - calculation of foreign investment fund amount

45. Step 1 - calculation of foreign investment fund amount

Subdivision J - Foreign currency gains and losses

46. Step 1 - calculation of foreign investment fund amount

47. Step 2 - calculation of foreign investment fund income

Subdivision K - Redemption price

48. How market value is ascertained

Subdivision L - Recalculation of notional deduction for certain

prescribed classes of property

49. Notional deductions - amortisation of expenditure in acquiring property

Subdivision M - Reduction of FIF attribution debits

50. FIF attribution debit

Subdivision N - Correction of sundry errors

51. Foreign tax if CFC has interest in FIF

52. Exemption

53. Exemption

Division 8 - Amendments relating to the payment of instalments

by companies and certain trustees

Subdivision A - Insertion of new Division

54. Insertion of new Division:

Division 1C - Payment of instalments by companies and certain trustees

Subdivision A - Interpretation

221AZH. Interpretation

221AZI. References to tax payable modified for years in which taxpayer

had net capital gain

Subdivision B - General rules for payment of instalments

221AZJ. Object of Division

221AZK. Liability to pay instalments

221AZL. Commissioner may waive or reduce instalment

221AZM. Instalments to be credited against current year's tax etc.

Subdivision C - Calculating likely tax for current year

221AZN. General rule for calculating likely tax

Subdivision D - Estimates of current year's tax

221AZO. Taxpayer may lodge estimates of current year's tax

221AZP. Penalty applies if estimate is too low

221AZQ. Refund of excessive instalment on downwards estimate

221AZR. Liability to pay an additional amount on upwards estimate

Subdivision E - Miscellaneous

221AZS. Taxpayer must specify taxable income etc. in return

221AZT. Due date for payment of tax

221AZU. Avoidance schemes

Subdivision B - Application and transitional

55. Interpretation

56. Application of new Division 1C

57. Penalty if taxpayer classified as large for 1994-95 year on basis of

excessive estimate

Subdivision C - Consequential amendments

58. Consequential amendments

PART 4 - AMENDMENT OF THE INCOME TAX ASSESSMENT AMENDMENT (FOREIGN

INVESTMENT) ACT 1992

Division 1 - Principal Act

60. Principal Act

Division 2 - Amendment relating to passive income

61. Passive income

PART 5 - AMENDMENT OF THE INCOME TAX RATES ACT 1986

Division 1 - Principal Act

62. Principal Act

Division 2 - Tax cuts for companies etc. - 1993-94 and later years

63. Rates of tax payable by companies

64. Rate of tax payable by trustees of corporate unit trusts

65. Rate of tax payable by trustees of public trading trusts

66. Rate of tax payable by trustee to whom subsection 98(3) of the

Assessment Act applies

67. Application

PART 6 - AMENDMENT OF THE SALES TAX ASSESSMENT ACT 1992

Division 1 - Principal Act

68. Principal Act

Division 2 - Amendments relating to contents of containers

69. Taxable dealing with goods that are the contents of a container

70. Schedule 1

71. Application

SCHEDULE

AMENDMENT OF ACTS

TAXATION LAWS AMENDMENT ACT (No. 2) 1993No. 18, 1993 - LONG TITLE

An Act to amend the law relating to taxation

PART 1 - PRELIMINARY

TAXATION LAWS AMENDMENT ACT (No. 2) 1993No. 18, 1993

- SECT 1

Short title [see Note 1]

1. This Act may be cited as the Taxation Laws Amendment Act (No. 2) 1993.

TAXATION LAWS AMENDMENT ACT (No. 2) 1993No. 18, 1993

- SECT 2

Commencement [see Note 1]

2.(1) Subject to this section, this Act commences on the day on which it

receives the Royal Assent.

(2) Divisions 1 and 7 of Part 3, and Part 4, are taken to have commenced

immediately after the commencement of the Income Tax Assessment Amendment

(Foreign Investment) Act 1992.

PART 2 - AMENDMENT OF THE FRINGE BENEFITS TAX ASSESSMENT ACT 1986

Division 1 - Principal Act

TAXATION LAWS AMENDMENT ACT (No. 2) 1993No. 18, 1993

- SECT 3

Principal Act

3. In this Part, "Principal Act" means the Fringe Benefits Tax Assessment

Act 1986.*1*

*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; amd No. 17, 1993.

Division 2 - Amendment relating to child care access

TAXATION LAWS AMENDMENT ACT (No. 2) 1993No. 18, 1993

- SECT 4

Exempt residual benefits

4. Section 47 of the Principal Act is amended by omitting subsection (8) and

substituting the following subsection:

"(8) If:

(a) a residual benefit provided in respect of the employment of an employee

arose out of priority of access, for a child or children of the employee, to:

(i) a place that is an eligible child care centre for the purposes

of any provision of the Child Care Act 1972; or

(ii) family day care; or

(iii) care outside school hours; or

(iv) care in school vacations; and

(b) in order to obtain that priority of access, the employer of the

employee, or an associate of the employer, made a contribution under a program

administered by the Department of Health, Housing, Local Government and

Community Services;

the residual benefit is an exempt benefit.".

TAXATION LAWS AMENDMENT ACT (No. 2) 1993No. 18, 1993

- SECT 5

Application

5. The amendment made by this Division applies to residual benefits provided

on or after 1 July 1993.

TAXATION LAWS AMENDMENT ACT (No. 2) 1993No. 18, 1993

- SECT 6

Transitional (change of program name)

6. Subsection 47 (8) of the Principal Act (as in force immediately before

the commencement of the amendment made by this Division) applies to residual

benefits provided on or after 1 July 1992 and before 1 July 1993 as if the

reference in paragraph (b) of that subsection to the program known as Services

for Families with Children were instead a reference to the Children's Services

Program.

PART 3 - AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

Division 1 - Principal Act

TAXATION LAWS AMENDMENT ACT (No. 2) 1993No. 18, 1993

- SECT 7

Principal Act

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

1936.*2*

*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

185, 1981; Nos. 29, 38, 39, 76, 80, 106 and 123, 1982; Nos. 14, 25, 39, 49,

51, 54 and 103, 1983; 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; Nos. 123, 1984 (as amended by No. 65, 1985);

Nos. 47, 49, 104. 123, 168

and 174, 1985; Nos. 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 No. 17,

1993.

Division 2 - Amendments to improve the readability of section 78 of the

Principal Act (which deals with deductions for gifts,

pensions etc.)

Subdivision A - New section 78

TAXATION LAWS AMENDMENT ACT (No. 2) 1993No. 18, 1993

- SECT 8

8. Section 78 of the Principal Act is repealed and the following section is

substituted:

Deduction for gifts, pensions etc.

Objects

"78.(1) The object of this section is to provide for the deductibility of

certain gifts, contributions, pensions, gratuities and retiring allowances.

Outline

"(2) The following table sets out an outline of this section:

Type of deduction

Entitlement to deduction

Valuation rules

Ancillary provisions

Gifts to certain funds, authorities or institutions

(4), (5)

(12)

-

Gifts to The Australiana Fund, libraries, museums or art galleries

(6)

(13), (14), (15)

(16)

Gifts to Artbank

(7)

(13), (14), (15)

(16)

Gifts of heritage properties to National Trust

(8)

(13), (14), (15)

(16)

Contributions to registered political parties

(9), (10)

(17)

-

Pensions, gratuities or retiring allowances for ex-employees etc.

(11)

-

-

Index

"(3) The following is an index to this section:

Academies-professional

(4)-Table 2

Academy of the Social Sciences in Australia Incorporated

(4)-Table 2, item 2.2.1

Amnesty International

(4)-Table 4, item 4.2.1

Ancillary funds

(5)

Antarctic research

(4)-Table 3, item 3.2.3

Apportionment of deductions under subsection (6), (7) or (8)

(16)

Approved research institutes-section 73A

(4)-Table 3, item 3.1.1

Armed forces, auxiliaries

(4)-Table 5, item 5.1.2

Artbank

(7)

Art galleries

(4)-Table 12, items 12.1.4 and 12.1.5; (6)

Australian Academy of Science

(4)-Table 2, item 2.2.2

Australian Academy of Technological Sciences and Engineering Limited

(4)-Table 2, item 2.2.4

Australian Academy of the Humanities for the Advancement of

Scholarship in Language, Literature, History, Philosophy and the

Fine Arts

(4)-Table 2, item 2.2.3

Australian Administrative Staff College

(4)-Table 2, item 2.2.5

Australiana Fund

(4)-Table 12, item 12.2.1; (6)

Australian and New Zealand Association for the Advancement of Science

(4)-Table 2, item 2.2.6

Australian College of Obstetricians and Gynaecologists

(4)-Table 1, item 1.2.1

Australian College of Occupational Medicine

(4)-Table 1, item 1.2.2

Australian Conservation Foundation Incorporated

(4)-Table 6, item 6.2.1

Australian Institute of International Affairs

(4)-Table 9, item 9.2.1

Australian Ireland Fund

(4)-Table 2, item 2.2.7

Australian National Travel Association

(4)-Table 9, item 9.2.2

Australian Postgraduate Federation in Medicine

(4)-Table 1, item 1.2.3

Australian Regional Council of the Royal College of Obstetricians and

Gynaecologists

(4)-Table 1, item 1.2.11

Australian Sports Foundation

(4)-Table 10, item 10.2.1

Centre for Independent Studies

(4)-Table 3, item 3.2.1

Child Accident Prevention Foundation of Australia

(4)-Table 4, item 4.2.2

College buildings

(4)-Table 2, item 2.1.10

College of Radiologists in Australasia

(4)-Table 1, item 1.2.4

Conditional gifts-subsection (6), (7) or (8)

(15)

Connellan Airways Trust

(4)-Table 11, item 11.2.1

Conservation bodies

(4)-Table 6

Council for Christian Education in Schools

(4)-Table 2, item 2.2.10

Council for Jewish Education in Schools

(4)-Table 2, item 2.2.11

Cultural organisations

(4)-Table 12

Defence organisations

(4)-Table 5

Definitions

(26)

Diseases-institutions researching causes, prevention or cure

(4)-Table 1, items 1.1.4 and 1.1.5

Education bodies

(4)-Table 2

Employees-pensions etc.

(11)

Environmental organisations

(4)-Table 6

Family organisations

(4)-Table 8

Foundation for Development Cooperation Ltd

(4)-Table 9, item 9.2.3

Friends of the Duke of Edinburgh's Award in Australia Incorporated

(4)-Table 11, item 11.2.2

Girl Guides

(4)-Table 10, items 10.2.2 and 10.2.3

Gratuities for ex-employees

(11)

Greening Australia Limited

(4)-Table 6, item 6.2.2

Health organisations

(4)-Table 1

Herbert Vere Evatt Memorial Foundation Incorporated

(4)-Table 11, item 11.2.3

Heritage properties

(8)

Hospitals

(4)-Table 1, items 1.1.1 and 1.1.2

H.R.H. The Duke of Edinburgh's Commonwealth Study Conferences

(Australia) Incorporated

(4)-Table 2, item 2.2.12

Ian Clunies Ross Memorial Foundation

(4)-Table 3, item 3.2.2

Industrial Design Council of Australia

(4)-Table 7, item 7.2.1

Industry, trade and design

(4)-Table 7

International affairs

(4)-Table 9

Joint ownership of property-subsection (6), (7) or (8)

(16)

Landcare Australia Limited

(4)-Table 6, item 6.2.3

Libraries

(4)-Table 12, items 12.1.2 and 12.1.5; (6)

Life Education Centre

(4)-Table 2, item 2.2.8

Lionel Murphy Foundation

(4)-Table 2, item 2.2.13

Marcus Oldham Farm Management College

(4)-Table 2, item 2.2.14

Marriage guidance organisations

(4)-Table 8, item 8.1.1

Medical colleges

(4)-Table 1

Medical research

(4)-Table 1

Museums

(4)-Table 12, items 12.1.3 and 12.1.5; (6)

National Foundation for Australian Women Limited

(4)-Table 4, item 4.2.3

National Parks associations

(4)-Table 6

National Safety Council of Australia

(4)-Table 4, item 4.2.4

National Trust bodies

(4)-Table 6; (8)

Nature organisations

(4)-Table 6

Necessitous circumstances-funds for relief of persons in

(4)-Table 4, item 4.1.3

New South Wales College of Nursing

(4)-Table 1, item 1.2.5

Nursing Mothers' Association of Australia

(4)-Table 8, item 8.2.1

Overseas aid funds

(4)-Table 9, item 9.1.1

Pearl Watson Foundation Limited

(4)-Table 4, item 4.2.5

Pensions for ex-employees

(11)

Philanthropic trusts

(4)-Table 11

Playford Memorial Trust

(4)-Table 11, item 11.2.4

Political contributions

(9), (10)

Political parties

(9), (10)

Prevention of cruelty to animals

(4)-Table 4

Productivity

(4)-Table 7

Productivity Promotion Council of Australia

(4)-Table 7, item 7.2.2

Property-gifts of

(4)-(10)

Property-valuations of

(12)-(17)

Public benevolent institutions

(4)-Table 4, item 4.1.1

Queen Elizabeth II Silver Jubilee Trust for Young Australians

(4)-Table 11, item 11.2.6

Queen Elizabeth the Second Coronation Gift Fund

(4)-Table 11, item 11.2.8

Religious instruction/education

(4)-Table 2

Research institutions

(4)-Table 3

Residential education institutions

(4)-Table 2

Retiring allowances for ex-employees

(11)

Royal Australian and New Zealand College of Psychiatrists

(4)-Table 1, item 1.2.6

Royal Australian College of General Practitioners

(4)-Table 1, item 1.2.7

Royal Australasian College of Physicians

(4)-Table 1, item 1.2.8

Royal Australasian College of Surgeons

(4)-Table 1, item 1.2.9

Royal College of Nursing, Australia

(4)-Table 1, item 1.2.12

Royal College of Pathologists of Australasia

(4)-Table 1, item 1.2.10

Rural school hostels

(4)-Table 2, item 2.1.11

School buildings

(4)-Table 2, item 2.1.10

Schools

(4)-Table 2

Scouts

(4)-Table 10, items 10.2.4 and 10.2.5

Shrine of Remembrance Restoration and Development Trust

(4)-Table 5, item 5.2.1

Sir Robert Menzies Memorial Trust Foundation Limited

(4)-Table 11, 11.2.5

Sports and recreation

(4)-Table 10

Tax incentives for the arts

See 'Property'

Tertiary education/TAFE

(4)-Table 2

Trusts-philanthropic

(4)-Table 11

Trusts-ancillary

(5)

Universities-general

(4)-Table 2

Universities-research

(4)-Table 3

Valuations

(12)-(17)

Valuers

(18)

Victoria Conservation Trust

(4)-Table 6, item 6.2.6

Welfare and rights

(4)-Table 4

Wills

(5)

Winston Churchill Memorial Trust

(4)-Table 11, item 11.2.7

Work Skill Australia Foundation Incorporated

(4)-Table 7, item 7.2.3

Works of art

See 'Property'

World Wide Fund for Nature Australia

(4)-Table 6, item 6.2.22

Deductions for gifts-listed funds, authorities and institutions

"(4) A gift by a taxpayer to a fund, authority or institution mentioned in

any of the following tables is an allowable deduction for the year of income

in which the gift was made if:

(a) the fund, authority or institution is in Australia; and

(b) the gift is:

(i) money; or

(ii) property that was purchased by the taxpayer during the 12

months before the gift was made; or

(iii) property that is trading stock of the taxpayer to which

subsection 36(1) applies, where the taxpayer has not made, and does not make,

an election under subsection 36 (3) or section 36AAA in relation to the

property; and

(c) the value of the gift is $2 or more; and

(d) the gift is not a testamentary gift; and

(e) if one or more special conditions are set out in the table opposite the

name of the fund, authority or institution-those conditions are satisfied;

and

(f) if the gift is property-a deduction is not allowable to the taxpayer

under subsection (6), (7) or (8) in respect of the gift.

Each item is independent of every other item.

GUIDE TO TABLES

1.

Health

2.

Education

3.

Research

4.

Welfare and Rights

5.

Defence

6.

The Environment

7.

Industry, Trade and Design

8.

The Family

9.

International Affairs

10.

Sports and Recreation

11.

Philanthropic Trusts

12.

Cultural Organisations

TABLE 1-HEALTH

Item

Fund, authority or institution

Special conditions

1. General

1.1.1

a public hospital

1.1.2

a hospital carried on by a society or association otherwise than

for the purposes of profit or gain to the individual members of

the society or association

1.1.3

a public fund established before 23 October 1963 and maintained

for the purpose of providing money for hospitals covered by items

1.1.1 or 1.1.2 or for the establishment of such hospitals

1.1.4

a public authority engaged in research into the causes, prevention

or cure of disease in human beings, animals or plants

the gift must be for such research

1.1.5

a public institution engaged solely in research into the causes,

prevention or cure of disease in human beings, animals or plants

2. Specific

1.2.1

the Australian College of Obstetricians and Gynaecologists

1.2.2

the Australian College of Occupational Medicine

1.2.3

the Australian Postgraduate Federation in Medicine

the gift must be made for education or research in medical

knowledge or science

1.2.4

the College of Radiologists in Australasia

the gift must be made for education or research in medical

knowledge or science

1.2.5

the New South Wales College of Nursing

1.2.6

the Royal Australian and New Zealand College of Psychiatrists

1.2.7

the Royal Australian College of General Practitioners

the gift must be made for education or research in medical

knowledge or science

1.2.8

the Royal Australasian College of Physicians

1.2.9

the Royal Australasian College of Surgeons

1.2.10

the Royal College of Pathologists of Australasia

the gift must be made for education or research in medical

knowledge or science

1.2.11

the Australian Regional Council of the Royal College of

Obstetricians and Gynaecologists

1.2.12

the Royal College of Nursing, Australia

TABLE 2-EDUCATION

Item

Fund, authority or institution

Special conditions

1. General

2.1.1

a public university

2.1.2

a public fund for the establishment of a public university

2.1.3

a higher education institution within the meaning of the

Employment, Education and Training Act 1988

2.1.4

a residential educational institution affiliated under statutory

provisions with a public university

2.1.5

a residential educational institution established by the

Commonwealth

2.1.6

residential educational institution that is affiliated with a

higher education institution within the meaning of the Employment,

Education and Training Act 1988

2.1.7

an institution that is certified by the Minister for Employment,

Education and Training, by signed instrument, to be a technical

and further education institution within the meaning of the

Employment, Education and Training Act 1988

the gift must be for certified purposes of the institution

or for the provision of certified facilities for the

institution (see subsection (26))

2.1.8

a public fund established and maintained exclusively for the

purpose of providing religious instruction in government schools

in Australia

2.1.9

a public fund established and maintained by a Roman Catholic

archdiocesan or diocesan authority exclusively for the purpose of

providing religious instruction in government schools in Australia

2.1.10

a public fund established and maintained exclusively for providing

money for the acquisition, construction or maintenance of a

building used, or to be used, as a school or college by:

(a) a government; or

(b) a public authority; or

(c) a society or association which is carried on otherwise than

for the purposes of profit or gain to the individual members of

the society or association

2.1.11

a public fund established and maintained exclusively for providing

money for the acquisition, construction or maintenance of an

eligible rural school hostel building (see subsection (26))

2. Specific

2.2.1

The Academy of the Social Sciences in Australia Incorporated

2.2.2

the Australian Academy of Science

2.2.3

the Australian Academy of the Humanities for the Advancement of

Scholarship in Language, Literature, History, Philosophy and the

Fine Arts

2.2.4

the Australian Academy of Technological Sciences and Engineering

Limited

2.2.5

the Australian Administrative Staff College

2.2.6

the Australian and New Zealand Association for the Advancement of

Science

2.2.7

the Australian Ireland Fund

2.2.8

the Life Education Centre

2.2.9

a company that conducts life education programs under the auspices

of the Life Education Centre

(a) the gift must be for the conduct of such programs; and

(b) the company must not be carried on for the purposes of

profit or gain to its individual members; and

(c) the company must, by the terms of the company's

constituent document, be prohibited from making any

distribution, whether in money, property or otherwise, to its

members

2.2.10

the Council for Christian Education in Schools

2.2.11

the Council for Jewish Education in Schools

2.2.12

H.R.H. The Duke of Edinburgh's Commonwealth Study Conferences

(Australia) Incorporated

2.2.13

the Lionel Murphy Foundation

2.2.14

the Marcus Oldham Farm Management College

the gift must be for certified purposes of the college or for

the provision of certified facilities for the college (see

subsection (26))

TABLE 3-RESEARCH

Item

Fund, authority or institution

Special conditions

1. General

3.1.1

a university, college, institute, association or organisation

which is an approved research institute for the purposes of

section 73A

the gift must be for purposes of scientific research as

defined in section 73A

2. Specific

3.2.1

the Centre for Independent Studies

3.2.2

the Ian Clunies Ross Memorial Foundation

3.2.3

the Commonwealth

the gift must be made for purposes of research in the

Australian Antarctic Territory

TABLE 4-WELFARE AND RIGHTS

Item

Fund, authority or institution

Special conditions

1. General

4.1.1

a public benevolent institution

4.1.2

a public fund established before 23 October 1963 and maintained

for the purpose of providing money for public benevolent

institutions or for the establishment of public benevolent

institutions

4.1.3

a public fund established and maintained for the relief of persons

in Australia who are in necessitous circumstances

2. Specific

4.2.1

Amnesty International

4.2.2

the Child Accident Prevention Foundation of Australia

4.2.3

the National Foundation for Australian Women Limited

4.2.4

the National Safety Council of Australia

4.2.5

the Pearl Watson Foundation Limited

4.2.6

the Royal Society for the Prevention of Cruelty to Animals New

South Wales

4.2.7

the Royal Society for the Prevention of Cruelty to Animals

(Victoria)

4.2.8

the Royal Queensland Society for the Prevention of Cruelty

4.2.9

the Royal Society for the Prevention of Cruelty to Animals (South

Australia) Incorporated

4.2.10

the Royal Society for the Prevention of Cruelty to Animals Western

Australia (Incorporated)

4.2.11

the R.S.P.C.A. (Tasmania) Incorporated

4.2.12

the Society for the Prevention of Cruelty to Animals (Northern

Territory)

4.2.13

the Royal Society for the Prevention of Cruelty to Animals

(A.C.T.) Incorporated

4.2.14

the R.S.P.C.A. Australia Incorporated

TABLE 5-DEFENCE

Item

Fund, authority or institution

Special conditions

1. General

5.1.1

the Commonwealth or a State

the gift must be made for purposes of defence

5.1.2

a public institution established and maintained for the comfort,

recreation or welfare of members of the armed forces of any part

of Her Majesty's dominions, or of any allied or other foreign

force serving in association with Her Majesty's armed forces

2. Specific

5.2.1

the Shrine of Remembrance Restoration and Development Trust

TABLE 6-THE ENVIRONMENT

Item

Fund, authority or institution

Special conditions

1. General

6.1.1

a fund that, when the gift is made, is on the Register of

Environmental Organisations kept under section 78AB

2. Specific

6.2.1

the Australian Conservation Foundation Incorporated

special conditions set out in subsection (25)

6.2.2

Greening Australia Limited

special conditions set out in subsection (25)

6.2.3

Landcare Australia Limited

special conditions set out in subsection (25)

6.2.4

the National Parks Association of New South Wales

special conditions set out in subsection (25)

6.2.5

the Victorian National Parks Association

special conditions set out in subsection (25)

6.2.6

the Victoria Conservation Trust

special conditions set out in subsection (25)

6.2.7

the National Parks Association of Queensland

special conditions set out in subsection (25)

6.2.8

The Nature Conservation Society of South Australia Incorporated

special conditions set out in subsection (25)

6.2.9

the National Parks Foundation of South Australia Incorporated

special conditions set out in subsection (25)

6.2.10

the Western Australian National Parks and Reserves Association

Incorporated

special conditions set out in subsection (25)

6.2.11

the Tasmanian Conservation Trust Incorporated

special conditions set out in subsection (25)

6.2.12

the National Parks Association of the Australian Capital Territory

Incorporated

special conditions set out in subsection (25)

6.2.13

the National Trust of Australia (New South Wales)

6.2.14

the National Trust of Australia (Victoria)

6.2.15

The National Trust of Queensland

6.2.16

The National Trust of South Australia

6.2.17

The National Trust of Australia (W.A.)

6.2.18

the National Trust of Australia (Tasmania)

6.2.19

The National Trust of Australia (Northern Territory)

6.2.20

the National Trust of Australia (A.C.T.)

6.2.21

the Australian Council of National Trusts

6.2.22

the World Wide Fund for Nature Australia

special conditions set out in subsection (25)

TABLE 7-INDUSTRY, TRADE AND DESIGN

Item

Fund, authority or institution

Special conditions

1. General

7.1.1

-

-

2. Specific

7.2.1

the Industrial Design Council of Australia

7.2.2

the Productivity Promotion Council of Australia

7.2.3

the Work Skill Australia Foundation Incorporated

TABLE 8-THE FAMILY

Item

Fund, authority or institution

Special conditions

1. General

8.1.1

a public fund established and maintained exclusively for the

purpose of providing money to be used in giving marriage guidance

to persons in Australia through a voluntary organisation or

through a branch or section of such an organisation

the organisation, branch or section, as the case may be, must

be approved by the Attorney-General (see subsection (24))

2. Specific

8.2.1

the Nursing Mothers' Association of Australia

TABLE 9-INTERNATIONAL AFFAIRS

Item

Fund, authority or institution

Special conditions

1. General

9.1.1

a public fund in respect of which there is in force, at the time

when the gift is made, a declaration under subsection (21) that

the fund is an eligible fund for the purposes of this item

2. Specific

9.2.1

the Australian Institute of International Affairs

9.2.2

the Australian National Travel Association

9.2.3

The Foundation for Development Cooperation Ltd

TABLE 10-SPORTS AND RECREATION

Item

Fund, authority or institution

Special conditions

1. General

10.1.1

-

-

2. Specific

10.2.1

the Australian Sports Foundation

10.2.2

the Girl Guides Association of Australia

10.2.3

an institution that is known as a State or Territory branch of the

Girl Guides Association of Australia

10.2.4

the Scout Association of Australia

10.2.5

an institution that is known as a State or Territory branch of the

Scout Association of Australia

TABLE 11-PHILANTHROPIC TRUSTS

Item

Fund, authority or institution

Special conditions

1. General

11.1.1

-

-

2. Specific

11.2.1

the Connellan Airways Trust

11.2.2

The Friends of the Duke of Edinburgh's Award in Australia

Incorporated

11.2.3

the Herbert Vere Evatt Memorial Foundation Incorporated

11.2.4

the Playford Memorial Trust

11.2.5

The Sir Robert Menzies Memorial Foundation Limited

11.2.6

the Queen Elizabeth II Silver Jubilee Trust for Young Australians

11.2.7

the Winston Churchill Memorial Trust

11.2.8

the Queen Elizabeth the Second Coronation Gift Fund

TABLE 12-CULTURAL ORGANISATIONS

Item

Fund, authority or institution

Special conditions

1. General

12.1.1

a fund that, when the gift is made, is on the Register of Cultural

Organisations kept under section 78AA

12.1.2

a public library

12.1.3

a public museum

12.1.4

a public art gallery

12.1.5

an institution consisting of a public library, public museum and

public art gallery or of any 2 of them

2. Specific

12.2.1

The Australiana Fund

Deductions for gifts-ancillary funds

"(5) A gift by a taxpayer to a fund is an allowable deduction for the year

of income in which the gift was made if:

(a) the fund is a public fund established and maintained under a will or

instrument of trust exclusively for:

(i) the purpose of providing money, property or benefits to or for

funds, authorities or institutions referred to, and for the purposes (if any)

referred to, in any of the items in the tables in subsection (4); or

(ii) the establishment of such funds, authorities or institutions;

and

(b) the Commissioner is satisfied that the terms of the will or instrument

of trust are such that any money (including income derived from investments

and proceeds of the realisation of investments):

(i) paid or accrued to the fund as a direct or indirect result of

the gift; and

(ii) not applied for the purposes of the fund;

may not be invested by the trustee otherwise than in a manner in which

trustees are permitted by an Act, a State Act or a law of a Territory to

invest trust money without special authorisation; and

(c) the gift is:

(i) money; or

(ii) property that was purchased by the taxpayer during the 12

months before the gift was made; or

(iii) property that is trading stock of the taxpayer to which

subsection 36 (1) applies, where the taxpayer has not made, and does not make,

an election under subsection 36 (3) or section 36AAA in relation to the

property; and

(d) the value of the gift is $2 or more; and

(e) the gift is not a testamentary gift; and

(f) if the gift is property-a deduction is not allowable to the taxpayer

under subsection (6), (7) or (8) in respect of the gift.

Deductions for gifts of property-Australiana Fund, libraries, museums and art

galleries

"(6) A gift by a taxpayer to:

(a) The Australiana Fund; or

(b) a public library in Australia; or

(c) a public museum in Australia; or

(d) a public art gallery in Australia; or

(e) an institution in Australia consisting of a public library, a public

museum and a public art gallery or any 2 of them;

is an allowable deduction for the year of income in which the gift was made

if:

(f) the gift is property (other than an estate or interest in land or in a

building or part of a building); and

(g) the value of the gift is $2 or more; and

(h) the property is given to, and accepted by, The Australiana Fund or the

authority or institution concerned for inclusion in the collection, or any of

the collections, maintained or being established by that Fund, authority or

institution; and

(i) the gift is not a testamentary gift; and

(j) the special valuation conditions set out in subsection (13) are complied

with.

Deductions for gifts of property-Artbank

"(7) A gift by a taxpayer to the Commonwealth is an allowable deduction for

the year of income in which the gift was made if:

(a) the gift is property (other than an estate or interest in land or in a

building or part of a building); and

(b) the property is given to, and accepted by the Commonwealth for inclusion

in the collection, or any of the collections, maintained or being established

for the purposes of Artbank; and

(c) the gift is not a testamentary gift; and

(d) the special valuation conditions set out in subsection (13) are complied

with.

Deductions for gifts of heritage properties-National Trust

"(8) A gift by a taxpayer to:

(a) the National Trust of Australia (New South Wales); or

(b) the National Trust of Australia (Victoria); or

(c) The National Trust of Queensland; or

(d) The National Trust of South Australia; or

(e) The National Trust of Australia (W.A.); or

(f) the National Trust of Australia (Tasmania); or

(g) The National Trust of Australia (Northern Territory); or

(h) the National Trust of Australia (A.C.T.); or

(i) the Australian Council of National Trusts;

is an allowable deduction for the year of income in which the gift was made

if:

(j) the gift is property; and

(k) the value of the gift is $2 or more; and

(l) the property consists of a place within the meaning of the Australian

Heritage Commission Act 1975; and

(m) at the time when the gift was made, the place was listed in the Register

of the National Estate kept under the Australian Heritage Commission Act 1975;

and

(n) the property was accepted by the National Trust body concerned for the

purpose of preserving the property for the benefit of the public; and

(o) the gift is not a testamentary gift; and

(p) the special valuation conditions set out in subsection (13) are complied

with.

Deductions for contributions to political parties

"(9) A contribution by a taxpayer to a registered political party (within

the meaning of the Commonwealth Electoral Act 1918) is an allowable deduction

for the year of income in which the contribution was made if:

(a) the contribution is:

(i) money; or

(ii) property that was purchased by the taxpayer during the 12

months before the contribution was made; and

(b) the value of the contribution is $2 or more; and

(c) the taxpayer is not a company; and

(d) the contribution is not a testamentary contribution.

$100 annual limit for deductions for contributions to political parties

"(10) The total deductions allowable to a taxpayer under subsection (9) in

respect of a year of income must not exceed $100.

Deductions for pensions, gratuities or retiring allowances to ex-employees

etc.

"(11) An amount paid by a taxpayer as a pension, gratuity or retiring

allowance to a person who is or was an employee or a dependant of an employee

is an allowable deduction for the year of income in which it was paid.

However:

(a) it is an allowable deduction under this subsection only to the extent

that, in the Commissioner's opinion, it is paid in good faith in consideration

of the past services of the employee in any business operations that were

carried on by the taxpayer for the purpose of gaining or producing assessable

income; and

(b) it is not an allowable deduction under this subsection if it is an

allowable deduction under any other provision of this Act.

Value of property for the purposes of subsections (4) and (5)

"(12) For the purposes of subsections (4) and (5), the value of a gift of

property is:

(a) if:

(i) the property is trading stock of the taxpayer to which

subsection 36 (1) applies; and

(ii) the taxpayer has not made, and does not make, an election under

subsection 36 (3) or section 36AAA in relation to the property;

the value of the property that is, because of subsection 36 (1), included in

the taxpayer's assessable income; or

(b) in any other case-whichever is the lesser of:

(i) the value of the property at the time of the making of the gift;

or

(ii) the amount paid by the taxpayer for the property.

Gifts of property covered by subsections (6), (7) and (8)-special valuation

conditions

"(13) For the purposes of subsections (6), (7) and (8), a taxpayer complies

with the special valuation conditions in relation to a gift of property if:

(a) both:

(i) assuming that the taxpayer had sold the property instead of

making the gift, any profits or proceeds from the sale would have been

included in the taxpayer's assessable income; and

(ii) the making of the gift does not result in an amount being

included in the taxpayer's assessable income; or

(b) all of the following conditions are satisfied:

(i) the taxpayer gives the Commissioner 2 or more written valuations

stating the amount that, in the opinion of the person making the valuation,

was:

(A) the value of the property at the time when the gift was made;

or

(B) if the valuation was made not earlier than 90 days (or such

longer period as the Commissioner allows) before, and not later than 90 days

(or such longer period as the Commissioner allows) after, the day on which the

gift was made-the value of the property at the time when the valuation was

made;

(ii) the valuations are by persons each of whom was, at the time

of making the valuation, an approved valuer in relation to property of the

kind concerned;

(iii) the written valuations are given to the Commissioner:

(A) with the taxpayer's return of income for the year of income in

which the gift was made; or

(B) if more than one such return is given-with the first return;

or

(C) within such further period as the Commissioner allows.

Value of gift-subsections (6), (7) and (8)

"(14) Subject to subsection (15) (which deals with conditional gifts), for

the purposes of subsections (6), (7) and (8), the value of a gift of property

is as follows:

(a) if both:

(i) assuming that the taxpayer had sold the property instead of

making the gift, any profits or proceeds from the sale would have been

included in the taxpayer's assessable income; and

(ii) the making of the gift does not result in an amount being

included in the taxpayer's assessable income;

the value of the gift is:

(iii) if the taxpayer purchased the property-the amount paid by

the taxpayer for the property; or

(iv) if the taxpayer created or produced the property-the amount

equal to so much of the cost of creating or producing the property as would

have been allowed as a deduction to the taxpayer if the property had been sold

by the taxpayer;

(b) if paragraph (a) does not apply and the taxpayer:

(i) acquired the property within 12 months before the making of the

gift otherwise than as a result of:

(A) a will, a codicil or an order of a court that varied or

modified the provisions of a will or codicil; or

(B) an intestacy or an order of a court that varied or modified

the application, in relation to the estate of a deceased person, of the

provisions of the law relating to the distribution of the estates of persons

who died intestate; or

(ii) acquired the property for the purpose of making a gift of the

property to, or subject to an eligible agreement that the property would be

gifted to:

(A) a Fund, authority or institution mentioned in subsection (6)

for inclusion in its collection, or any of its collections; or

(B) the Commonwealth for inclusion in the collection, or any of

the collections, of Artbank; or

(C) a body mentioned in subsection (8);

the value of the gift is whichever is the lesser of:

(iii) the amount (if any) paid by the taxpayer for the property; or

(iv) the amount that, assuming that this paragraph and subsection

(15) had not been enacted, would be the value of the gift;

(c) if neither paragraph (a) nor paragraph (b) applies:

(i) if the Commissioner is of the opinion that an amount equal to

the average of the values specified in the valuations given to the

Commissioner under subsection (13) in relation to the property fairly

represents the value of the property as at the time when the gift was made-the

value of the gift is that amount; or

(ii) in any other case-the value of the gift is the amount that

the Commissioner considers was the value of the property as at the time when

the gift was made.

Value of conditional gift-subsections (6), (7) and (8)

"(15) For the purposes of subsections (6), (7) and (8), if:

(a) the terms and conditions on which a gift of property is made are such

that the recipient does not:

(i) receive immediate custody and control of the property; or

(ii) have the unconditional right to retain custody and control

of the property in perpetuity; or

(iii) obtain an immediate, indefeasible and unencumbered legal

and equitable title to the property; or

(b) the Commissioner is satisfied that the custody, control or use of the

property by the recipient is affected by an eligible agreement entered into in

association with the making or receipt of the gift;

the value of the gift is the value worked out under subsection (14), reduced

by such amount as the Commissioner considers reasonable having regard to the

effect on the value of the gift of those terms and conditions or of that

eligible agreement.

Apportionment of deduction under subsection (6), (7) or (8)-joint ownership

"(16) If:

(a) a taxpayer (the 'first taxpayer') owns property jointly with one or more

other taxpayers; and

(b) the owners make a gift of the property; and

(c) assuming that:

(i) the property had been owned by the first taxpayer alone; and

(ii) the gift had been made by the first taxpayer;

the gift would have been an allowable deduction under subsection (6), (7) or

(8);

the first taxpayer is entitled to an allowable deduction of so much of the

amount of the deduction that would have been allowable as mentioned in

paragraph (c) as the Commissioner considers reasonable having regard to the

interest of the taxpayer in the property.

Value of property for the purposes of subsection (9)

"(17) For the purposes of subsection (9), the value of a contribution of

property is whichever is the lesser of:

(a) the value of the property at the time of the contribution; or

(b) the amount paid by the taxpayer for the property.

Approval of valuer

"(18) The Secretary to the Department of the Arts and Administrative

Services may, by signed instrument, approve a person as a valuer in relation

to a particular kind of property.

In deciding whether to give an approval,

the Secretary to that Department must have regard to:

(a) the person's qualifications, experience and knowledge in relation to the

valuation of property of that kind; and

(b) the person's knowledge of current market values of property of that

kind; and

(c) the person's standing in the professional community; and

(d) any other matters that the Secretary to that Department considers

relevant.

Approval of organisations for the purposes of eligible funds declaration

"(19) The Minister for Foreign Affairs may, by signed instrument, approve an

organisation as an approved organisation for the purposes of subsection (21).

Certification of country for the purposes of eligible funds declaration

"(20) The Minister for Foreign Affairs may, by signed instrument, certify a

country to be a developing country for the purposes of subsection (21).

Declaration of eligible funds

"(21) If the Treasurer is satisfied that a fund:

(a) is a fund established by an approved organisation (whether or not the

organisation was an approved organisation at the time when the fund was

established); and

(b) is exclusively for the relief of persons in a certified country or

certified countries (whether or not that country was a certified country, or

those countries were certified countries, at the time when the fund was

established);

the Treasurer may, by notice in the Gazette, declare it to be an eligible fund

for the purposes of item 9.1.1 of table 9 in subsection (4).

Eligible funds declaration-effective date

"(22) A notice under subsection (21) must specify the date on which the

notice has effect.

The date must not be earlier than the date on which the

notice is published in the Gazette.

Revocation of eligible funds declaration

"(23) The Treasurer may, by notice in the Gazette, revoke a declaration

under subsection (21).

The notice of revocation must specify the date on

which it has effect.

The date of effect must not be earlier than the date on

which the notice of revocation is published in the Gazette.

Approval of marriage guidance organisations

"(24) If the Attorney-General is satisfied that:

(a) an organisation, or a branch or a section of an organisation, is willing

and able to engage in marriage guidance; and

(b) marriage guidance constitutes, or will constitute, the whole or the

major part of the activities of the organisation, branch or section, as the

case may be;

the Attorney-General may, by signed instrument, approve the organisation,

branch or section, as the case may be, for the purposes of item 8.1.1 of table

8 in subsection (4).

Special conditions applicable to gifts made to certain environmental bodies

"(25) The following are the special conditions mentioned in various items in

table 6 in subsection (4):

(a) at the time the gift is made, the institution must have agreed to give

to the Department of the Environment, Sport and Territories, within a

reasonable period after the end of the financial year in which the gift was

made, statistical data about gifts made to the institution during the

financial year;

(b) at the time the gift is made, the institution must have a policy of not

acting as a mere conduit for the donation of money or property to other

institutions, bodies or persons.

Definitions

"(26) In this section:

'approved organisation' means an organisation approved under subsection

(19);

'approved valuer', in relation to a particular kind of property, means a

person in respect of whom there is in force under subsection (18) an approval

of the person as a valuer in relation to that kind of property;

'certified country' means a country certified under subsection (20) to be a

developing country for the purposes of this section;

'certified facilities', in relation to a college or institution, means

facilities (including residential accommodation) in respect of which the

Minister for Employment, Education and Training has certified, by signed

instrument, that he or she is satisfied are, or are to be, used wholly or

principally for certified purposes of the college or institution;

'certified purposes', in relation to a college or institution, means

purposes of the college or institution that have been certified by the

Minister for Employment, Education and Training, by signed instrument, to

relate exclusively to tertiary education;

'eligible agreement' means an agreement, arrangement or understanding:

(a) whether formal or informal; and

(b) whether express or implied; and

(c) whether or not enforceable by legal proceedings (whether or not the

agreement, arrangement or understanding was intended to be so enforceable);

'eligible rural school hostel building' means a building where:

(a) the building is used, or to be used, solely or principally as a

residential accommodation for students whose usual place of residence is in a

rural area and who are undertaking:

(i) primary or secondary education courses; or

(ii) special education programs for children with disabilities;

at a school or schools in the same locality as the residential accommodation;

and

(b) the capital or recurrent costs of the school or schools are funded (in

whole or in part) by the Commonwealth, a State or a Territory; and

(c) the residential accommodation is provided by:

(i) the Commonwealth, a State or a Territory; or

(ii) a public authority; or

(iii) a company that:

(A) is not carried on for the purposes of profit or gain to its

individual members; and

(B) is, by the terms of the company's constituent document,

prohibited from making any distribution, whether in money, property or

otherwise, to its members;

'property' does not include money;

'value', in relation to money, means the amount of money.".

Subdivision B - Consequential amendments

TAXATION LAWS AMENDMENT ACT (No. 2) 1993No. 18, 1993

- SECT 9

Interpretation

9. Section 6 of the Principal Act is amended:

(a) by omitting "or paragraph 78 (1) (a)" from paragraph (a) of the

definition of "apportionable deductions" in subsection (1);

(b) by inserting after paragraph (a) of the definition of "apportionable

deductions" in subsection (1) the following paragraph:

"(aa) deductions allowed or allowable under subsection 78 (4) or (5) (other

than deductions allowed or allowable for gifts of property that is trading

stock of the taxpayer to which subsection 36 (1) applies, where the taxpayer

has not made, and does not make, an election under subsection 36 (3) or

section 36AAA in relation to the property); or".

TAXATION LAWS AMENDMENT ACT (No. 2) 1993No. 18, 1993

- SECT 10

Certain gifts not to be allowable deductions

10. Section 78A of the Principal Act is amended:

(a) by omitting from subsection (5) "paragraph 78 (1) (aa), (ab) or (ac)"

and substituting "subsection 78 (6), (7) or (8)";

(b) by omitting from subsection (5) "78 (6F)" and substituting "78 (15)".

TAXATION LAWS AMENDMENT ACT (No. 2) 1993No. 18, 1993

- SECT 11

Non-resident family trusts

11. Section 102AAH of the Principal Act is amended by omitting from

subsection (5) "paragraph 78 (1) (a)" and substituting "subsection 78 (4) or

(5)".

TAXATION LAWS AMENDMENT ACT (No. 2) 1993No. 18, 1993

- SECT 12

Non-resident family trusts

12. Section 328 of the Principal Act is amended by omitting from subsection

(5) "paragraph 78 (1) (a)" and substituting "subsection 78 (4) or (5)".

Subdivision C - Application of amendments

TAXATION LAWS AMENDMENT ACT (No. 2) 1993No. 18, 1993

- SECT 13

Application

13.(1) The amendments made by this Division (other than the amendments of

sections 102AAH and 328 of the Principal Act) apply in relation to:

(a) gifts and contributions made on or after 1 July 1993; and

(b) pensions, gratuities and retiring allowances paid on or after 1 July

1993.

(2) The amendments of sections 102AAH and 328 of the Principal Act made by

this Division apply in relation to the characterisation of a trust as at a

time on or after 1 July 1993.

TAXATION LAWS AMENDMENT ACT (No. 2) 1993No. 18, 1993

- SECT 14

Transitional-approvals and declarations etc.

14. An approval, declaration or other instrument in force immediately before

the commencement of this section for the purposes of a provision of section 78

of the Principal Act has effect, after that commencement, as if it had been

made for the purposes of the corresponding provision of section 78 of the

Principal Act as amended by this Division.

Division 3 - Amendment relating to migration information

TAXATION LAWS AMENDMENT ACT (No. 2) 1993No. 18, 1993

- SECT 15

Officers to observe secrecy

15. Section 16 of the Principal Act is amended by inserting after paragraph

(4) (hc) the following paragraph:

"(hd) the Secretary to the Department of Immigration and Ethnic Affairs, for

the purpose of assisting in locating persons who are unlawfully in

Australia;".

Division 4 - Amendments relating to service with UN forces and other

bodies

TAXATION LAWS AMENDMENT ACT (No. 2) 1993No. 18, 1993

- SECT 16

Income of certain persons serving with an armed force under the control

of the United Nations

16. Section 23AB of the Principal Act is amended:

(a) by inserting after subsection (6) the following subsection:

"(6A) For the purposes of subsection (6), United Nations service does not

include any period of service in respect of which an exemption from income tax

applies under section 23ADA.";

(b) by inserting in subsection (7) ", (8A)" after "subsections (8)";

(c) by inserting in subsection (8) ", but subject to subsection (8A)" after

"subsection (7)";

(d) by inserting after subsection (8) the following subsection:

"(8A) For the purposes of subsection (7), United Nations service does not

include any period of service of the taxpayer in respect of which an exemption

from income tax applies under section 23ADA.".

TAXATION LAWS AMENDMENT ACT (No. 2) 1993No. 18, 1993

- SECT 17

Exemption of pay and allowances of members of Defence Force serving in

operational areas

17. Section 23AC of the Principal Act is amended:

(a) by inserting after paragraph (2) (cb) the following paragraphs:

"(cc) if the operational area is the former Yugoslavia-there is in force a

certificate in writing issued by the Chief of the Defence Force to the effect

that the allotment concerned was in respect of the member's service as part of

a United Nations peacekeeping force;

(cd) if the operational area is Somalia-there is in force a certificate in

writing issued by the Chief of the Defence Force to the effect that the

allotment concerned was in respect of the member's service as part of:

(i) the operation called Operation Restore Hope; or

(ii) the operation called the United Nations Operation in Somalia;";

(b) by inserting in subsection (2A) ", (cc) or (cd)" after "(2) (cb)";

(c) by inserting in subsection (3) "allotted for duty in an operational area

covered by subsection (6), (6A) or (6B)" after "Defence Force";

(d) by omitting from subparagraphs (3) (a) (i) and (ii) "an operational

area" and substituting "the operational area";

(e) by omitting from subparagraphs (3) (a) (iii) and (iv) "an area" and

substituting "the area";

(f) by inserting after subsection (3) the following subsection:

"(3A) For the purposes of this section, the operational service of a member

of the Defence Force allotted for duty in an operational area to which

subsection (6C) or (6D) applies:

(a) is taken to have begun at the later of:

(i) the time when the member arrived in the operational area; and

(ii) the time when the member's allotment for the duty in the

operational area began; and

(b) is taken to have ended at the earliest of:

(i) the time when the member departed from the operational area; and

(ii) the time when the member's allotment for the duty in the

operational area ended; and

(iii) the end of any termination date (defined in subsection (7))

applicable to the operational area; and

(c) is taken to include a period of hospital treatment resulting from an

illness contracted, or injuries sustained, during the member's operational

service.";

(g) by omitting from subsections (4) and (5) "or (cb)" and substituting ",

(cb), (cc) or (cd)";

(h) by inserting after subsection (6B) the following subsections:

"(6C) For the purposes of this section, the area comprising the former

Yugoslavia is taken to have become an operational area on 12 January 1992.

"(6D) For the purposes of this section, the area comprising Somalia is taken

to have become an operational area on 20 October 1992.";

(i) by omitting "or (6B)" from the definition of "operational area" in

subsection (7) and substituting ", (6B), (6C) or (6D)";

(j) by omitting from subsection (7) the definition of "termination date" and

substituting the following definition:

"'termination date' means:

(a) in relation to an operational area covered by subsection (6) or (6A)-9

June 1991; or

(b) in relation to an operational area covered by subsection (6B), (6C) or

(6D)-the date prescribed by regulations (which may be a date before the

commencement of the regulations) for the purposes of this definition as the

termination date in respect of the operational area covered by that

subsection.".

TAXATION LAWS AMENDMENT ACT (No. 2) 1993No. 18, 1993

- SECT 18

18. After section 23AC of the Principal Act the following sections are

inserted:

Exemption of pay and allowances of Defence Force members performing certain

overseas duty

(Requirements for exemption)

"23AD.(1) The pay and allowances earned by a person serving as a member of

the Defence Force are exempt from tax if:

(a) they are earned while there is in force a certificate in writing issued

"(3) This section does not apply if the estimate is lodged after the due

date for the 3rd instalment.

"Subdivision E-Miscellaneous

Taxpayer must specify taxable income etc. in return

"221AZS. In its return for the current year, an instalment taxpayer must

specify:

(a) its taxable income for the current year; and

(b) the amount (if any) of the tax payable on that taxable income.

Due date for payment of tax

"221AZT. The tax payable by an instalment taxpayer for the current year

becomes due and payable as follows:

(a) on the due date for the final instalment, if taxpayer lodges the

taxpayer's return for the current year on or before the due date for the final

instalment; or

(b) on the date on which the taxpayer lodges the taxpayer's return for the

current year, if the taxpayer lodges the return after the due date for the

final instalment.

Avoidance schemes

"221AZU. Part IVA and the related provisions of this Act apply for the

purposes of this Division as if references in that Part to a taxpayer

obtaining a tax benefit included references to a taxpayer obtaining a benefit

in relation to the operation of this Division.".

Subdivision B - Application and transitional

TAXATION LAWS AMENDMENT ACT (No. 2) 1993No. 18, 1993

- SECT 55

Interpretation

55. In this Subdivision:

"amended Act" means the Principal Act as amended by this Act.

TAXATION LAWS AMENDMENT ACT (No. 2) 1993No. 18, 1993 Application of new

Division 1C

- SECT 56

56.(1) For small and medium taxpayers, the new Division 1C applies for the

1994-95 year of income and all later years of income.

(2) For large taxpayers, the new Division 1C applies for the 1995-96 year of

income and all later years of income. However, for the 1995-96 year of income,

a large taxpayer is not required to pay the first instalment.

(3) In this section:

"new Division 1C" means Division 1C of Part VI of the amended Act.

TAXATION LAWS AMENDMENT ACT (No. 2) 1993No. 18, 1993

- SECT 57

Penalty if taxpayer classified as large for 1994-95 year on basis of

excessive estimate

57.(1) A taxpayer is liable to pay a penalty under this section in respect

of an estimate lodged by the taxpayer for the 1994-95 year of income if:

(a) the taxpayer is classified as large for the 1994-95 year of income only

because of the estimate; and

(b) the estimated amount turns out to be more than 10% above the taxpayer's

net tax for the 1994-95 year of income.

(2) The amount of the penalty is 16% of the difference between the estimated

amount and the net tax.

(3) Section 221AZI of the amended Act applies for the purposes of this

section.

(4) Penalty under this section is to be treated as tax for the purposes of

sections 208, 209, 214, 254, 255, 258 and 259 of the amended Act.

(5) In this section:

"net tax" means the tax payable after deducting the following amounts:

(a) credits under subsection 98A (2), Division 18 of Part III or Division 1AA

or 3A of Part VI of the amended Act, or under the Income Tax (International

Agreements) Act 1953;

(b) offsets under section 160AQK of the amended Act.

Subdivision C - Consequential amendments

TAXATION LAWS AMENDMENT ACT (No. 2) 1993No. 18, 1993

- SECT 58

Consequential amendments

58. The Acts specified in the Schedule are amended as set out in the

Schedule.

PART 4 - AMENDMENT OF THE INCOME TAX ASSESSMENT AMENDMENT

(FOREIGN INVESTMENT) ACT 1992

Division 1 - Principal Act

TAXATION LAWS AMENDMENT ACT (No. 2) 1993No. 18, 1993

- SECT 60

Principal Act

60. In this Part, "Principal Act" means the Income Tax Assessment Amendment

(Foreign Investment) Act 1992.*3*

*3* No. 190, 1992

Division 2 - Amendment relating to passive income

TAXATION LAWS AMENDMENT ACT (No. 2) 1993No. 18, 1993

- SECT 61

Passive income

61. Section 14 of the Principal Act is amended by adding at the end the

following subsection:

"(2) The amendment made by paragraph (1) (c) applies to assessments in

respect of income of the 1992-93 year of income and in respect of income of

all later years of income.".

PART 5 - AMENDMENT OF THE INCOME TAX RATES ACT 1986

Division 1 - Principal Act

TAXATION LAWS AMENDMENT ACT (No. 2) 1993No. 18, 1993

- SECT 62

Principal Act

62. In this Part, "Principal Act" means the Income Tax Rates Act 1986.*4*

*4* No. 107, 1986, as amended.

For previous amendments, see Nos. 60 and 138,

1987; Nos. 11, 78 and 118, 1988; Nos. 70, 98 and 106, 1989; No. 87, 1990; Nos.

48, 100 and 216, 1991; and No. 98, 1992.

Division 2 - Tax cuts for companies etc. - 1993-94 and later years

TAXATION LAWS AMENDMENT ACT (No. 2) 1993No. 18, 1993

- SECT 63

Rates of tax payable by companies

63. Section 23 of the Principal Act is amended:

(a) by omitting from subsections (2), (3) and (4C) "39%" and substituting

"33%";

(b) by omitting paragraph (4A) (c) and substituting the following

paragraph:

"(c) in respect of the non-fund component:

(i) if the company is a mutual life assurance company (within the

meaning of section 110 of the Assessment Act) at the end of the year of

income-39%; or

(ii) in any other case-33%; and";

(c) by omitting from paragraph (4C) (a) and subsection (4D) "30%" and

substituting "25%";

(d) by omitting from subsection (5) "$1,429" and substituting "$1,039".

TAXATION LAWS AMENDMENT ACT (No. 2) 1993No. 18, 1993

- SECT 64

Rate of tax payable by trustees of corporate unit trusts

64. Section 24 of the Principal Act is amended by omitting "39%" and

substituting "33%".

TAXATION LAWS AMENDMENT ACT (No. 2) 1993No. 18, 1993

- SECT 65

Rate of tax payable by trustees of public trading trusts

65. Section 25 of the Principal Act is amended by omitting "39%" and

substituting "33%".

TAXATION LAWS AMENDMENT ACT (No. 2) 1993No. 18, 1993

- SECT 66

Rate of tax payable by trustee to whom subsection 98(3) of the

Assessment Act applies

66. Section 28 of the Principal Act is amended by omitting "39%" and

substituting "33%".

TAXATION LAWS AMENDMENT ACT (No. 2) 1993No. 18, 1993

- SECT 67

Application

67. The amendments made by this Division apply to assessments in respect of

income of the 1993-94 year of income and of all later years of income.

PART 6 - AMENDMENT OF THE SALES TAX ASSESSMENT ACT 1992

Division 1 - Principal Act

TAXATION LAWS AMENDMENT ACT (No. 2) 1993No. 18, 1993

- SECT 68

Principal Act

68. In this Part, "Principal Act" means the Sales Tax Assessment Act

1992.*5*

*5* No. 114, 1992, as amended.

For previous amendments, see Nos. 150, 191 and

224, 1992.

Division 2 - Amendments relating to contents of containers

TAXATION LAWS AMENDMENT ACT (No. 2) 1993No. 18, 1993

- SECT 69

Taxable dealing with goods that are the contents of a container

69. Section 35 of the Principal Act is amended by omitting subsection (4)

and substituting the following subsection:

"(4) This section does not apply if the container is a shipping container

covered by exemption Item 60.".

TAXATION LAWS AMENDMENT ACT (No. 2) 1993No. 18, 1993

- SECT 70

Schedule 1

70. Schedule 1 to the Principal Act is amended:

(a) by omitting all the words in column (3) of Table 3 in relation to CR7

and substituting:

"Claimant is the taxpayer for an assessable dealing with goods ('the output

goods') that is not taxable (for any reason except section 29). Claimant has

borne tax on other goods ('the input goods') that have a sufficient link (as

defined by section 52) with the output goods. The input goods are not covered

by exemption Item 27 (3).";

(b) by inserting after credit ground CR8 in Table 3 the following credit

ground:

"CR8A

Ensuring no double tax in respect of containers

Claimant is the taxpayer for an assessable dealing (other than

one that is not taxable because of section 29) with goods that

are the contents of a container. Container is not covered by

exemption Item 27(3). Claimant has borne tax on the container.

the tax borne on the container

time of the assessable dealing".

TAXATION LAWS AMENDMENT ACT (No. 2) 1993No. 18, 1993

- SECT 71

Application

71.(1) The amendment made by section 69 applies to taxable dealings with

goods taking place after 26 May 1993.

(2) The amendments made by section 70 apply to assessable dealings with

goods taking place after 26 May 1993.

TAXATION LAWS AMENDMENT ACT (No. 2) 1993No. 18, 1993 - SCHEDULE

SCHEDULE

Section 58

AMENDMENT OF ACTS

Crimes (Taxation Offences) Act 1980

Subsection 3 (1) (definition of "income tax"):

After paragraph (ca) insert:

"(cb) any amount payable to the Commissioner under Division 1C

of Part VI of the Income Tax Assessment Act;".

Income Tax Assessment Act 1936

Section 94Y:

Add at the end:

"(2) A corporate limited partnership is not liable to pay instalments

under Division 1C of Part VI for a year of income unless it was also a

corporate limited partnership in relation to the immediately preceding

year of income.".

Section 166A:

Add at the end:

"(2) If Subdivision 1C of Part VI applies to the taxpayer for a year

of income and the taxpayer lodges a return for that year, the following

provisions apply:

(a) the Commissioner is deemed to have made an assessment of the

taxable income or net income, and the tax payable on that income, equal

to those respective amounts specified in the return;

(b) the assessment is deemed to have been made on the due date that

applies under section 221AZT;

(c) on and after the day on which the Commissioner is deemed to have

made the assessment, the return is deemed to be a notice of the deemed

assessment:

(i) under the hand of the Commissioner; and

(ii) served on the taxpayer on the day on which the Commissioner

is deemed to have made the assessment.".

After subsection 170AA (7):

Insert:

"(7A) If Division 1C of Part VI applies to the taxpayer for a year of

income and, on the basis of the taxpayer's return, the taxable income

was nil or no tax was payable on the taxable income, the following

provisions apply for the purposes of subsection (6):

(a) the Commissioner is taken to have served a notice of the kind

specified in paragraph (6) (a); and

(b) the reference in paragraph (6) (c) to the end of 30 days after

the date of service of the notice is to be read as a reference to the

due date that applies under section 221AZT.".

Subsection 218 (6B) (definition of "tax"):

After "1B," (wherever occurring) insert "1C,".

Subsection 218 (6B) (definition of "taxpayer"):

After "1B," insert "1C,".

After section 221AK:

Insert:

Termination of operation of this Division

"221AKA.(1) This Division does not apply to a taxpayer in relation to

a year of income if Division 1C applies to the taxpayer for that year of

income.

"(2) If this Division ceases to apply to a taxpayer because of

subsection (1), the taxpayer is no longer to be regarded as a relevant

entity within the meaning of this Division for any purpose of this

Act.".

Subsection 221YB (1):

Omit "(other than a relevant entity within the meaning of Division 1B)".

After subsection 221YB (1A):

Insert:

"(1B) A taxpayer is not liable to pay provisional tax if Division 1B

or 1C applies to the taxpayer in relation to the year of income

concerned.".

Subsection 222A (1) (definition of "taxation officer statement"):

After "section 221AZD" insert "or 221AZS".

After subsection 222 (1A):

Insert:

"(1B) A taxpayer is liable to pay additional tax by way of penalty

under this subsection if the taxpayer:

(a) fails to keep a record containing particulars of the basis of

the calculation of the amounts that the taxpayer specified under section

221AZS in a return for a year of income; or

(b) refuses or fails to produce to the Commissioner, when and as

required by the Commissioner under this Act, a document containing

particulars of the basis of the calculation of the amounts that the

taxpayer specified under section 221AZS in a return for a year of

income.

The penalty is double the amount of tax payable by the taxpayer for that

year of income.".

Notes to the Taxation Laws Amendment Act (No. 2) 1993

Note 1

The Taxation Laws Amendment Act (No. 2) 1993 as shown in this compilation comprises

Act No. 18, 1993 amended as indicated in the Tables below.

Table of Acts

Act

Number

and year

Date

of Assent

Date of commencement

Application, saving or transitional provisions

Taxation Laws Amendment Act (No. 2) 1993

18, 1993

9 June 1993

See s. 2

Taxation Laws Amendment Act (No. 3) 1994

138, 1994

28 Nov 1994

S. 7(3): Royal Assent

Tax Laws Amendment (2010 Measures No. 2) Act 2010

75, 2010

28 June 2010

Schedule 6 (item 46): 29 June 2010

Table of Amendments

    ad. = added or inserted

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

Provision affected

How affected

S. 57........................................

am. No. 138, 1994

Div. 9 of Part 3.........................

rep. No. 75, 2010

S. 59........................................

rep. No. 75, 2010

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