Taxation Laws Amendment Act (No. 4) 1985 (Cth)
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 I - PRELIMINARY
Section
Short title [
Commencement [
PART II - AMENDMENTS OF THE INCOME TAX ASSESSMENT ACT 1936
Principal Act
Income of certain persons serving with an armed force under the control
of the United Nations
Exemption of certain pensions
Insertion of new section -
Meals provided to clients, &c., in in-house dining facilities
Interpretation
Assessable income to include certain superannuation and kindred payments
Insertion of new sections -
Deductions not allowable for entertainment expenses
Car expenses incurred by employee
Deductions for travel expenses where person accompanied by
eligible relative
10. Insertion of new section -
Certain election expenses not deductible
11. Deduction of expenditure on conserving or conveying water
12. Deduction of expenditure on prevention of land degradation
14. Insertion of new Subdivision -
Interpretation
Documentary evidence
Car expenses
Car expenses where income-producing use exceeds 5,000 kilometres
Car expenses where income-producing use does not exceed 5,000
kilometres
Elections
Other expenses
Retention, and production, of documents
Aggregate claims not exceeding a certain amount
15. Modified application of Act in relation to certain unit trusts
16. Insertion of new Division -
Interpretation
Trading trusts
Public unit trusts
Resident unit trusts
Public trading trusts
Taxation of net income of public trading trust
Modified application of Act in relation to certain unit trusts
17. Rebate in respect of certain pensions
18. Rebate in respect of amounts assessable under section 26AH
19. Amendment of assessments
20. Interpretation
21. Prescribed persons
22. Release of liability of members of the Defence Force on death
23. Application of amendments
PART III - AMENDMENTS OF THE INCOME TAX (INDIVIDUALS) ACT 1985
25. Principal Act
26. Title
27. Interpretation
28. Imposition of income tax
PART IV - AMENDMENTS OF THE INCOME TAX (INTERNATIONAL AGREEMENTS)
ACT 1953
29. Principal Act
30. Interpretation
31. Ascertainment of Australian tax
32. Withholding tax
PART V - AMENDMENTS OF THE INCOME TAX (RATES) ACT 1982
33. Principal Act
34. Title
35. Interpretation
TAXATION LAWS AMENDMENT ACT (No. 4) 1985 No. 173 of 1985 - LONG TITLE
An Act to amend the law relating to income tax
TAXATION LAWS AMENDMENT ACT (No. 4) 1985 No. 173 of 1985
- SECT 1
Short
title [
1. This Act may be cited as the Taxation Laws Amendment Act (No. 4)
1985.
TAXATION LAWS AMENDMENT ACT (No. 4) 1985 No. 173 of 1985
- SECT 2
Commencement
[
2. (1) Subject to this section, this Act shall come into operation on the
day on which it receives the Royal Assent.
(2) Sub-section 5 (1) shall be deemed to have come into operation on 6 June
1985.
(3) Sub-section 5 (2) shall be deemed to have come into operation on 1
November 1985.
(4) Section 4, sub-section 5 (3) and sections 17, 20, 21 and 22 shall come
into operation on the day on which the Veterans' Entitlements Act 1986 comes
into operation.
TAXATION LAWS AMENDMENT ACT (No. 4) 1985 No. 173 of 1985
- SECT 3
Principal Act
3. The Income Tax Assessment Act 1936*1* is in this Part referred to as the
Principal Act.
*1*No. 27, 1936, as amended. For previous amendments, see No. 88, 1936; No. 5,
1937; No. 46, 1938; No. 30, 1939; Nos. 17 and 65, 1940; Nos. 58 and 69, 1941;
Nos. 22, and 50, 1942; No. 10, 1943; Nos. 3 and 28, 1944; Nos. 4 and 37, 1945;
No. 6, 1946; Nos. 11 and 63, 1947; No. 44, 1948; No. 66, 1949; No. 48, 1950;
No. 44, 1951; Nos. 4, 28 and 90, 1952; Nos. 1, 28, 45 and 81, 1953; No. 43,
1954; Nos. 18 and 62, 1955; Nos. 25, 30 and 101, 1956; Nos. 39 and 65, 1957;
No. 55, 1958; Nos. 12, 70 and 85, 1959; Nos. 17, 18, 58 and 108, 1960; Nos.
17, 27 and 94, 1961; Nos. 39 and 98, 1962; Nos. 34 and 69, 1963; Nos. 46, 68,
110 and 115, 1964; Nos. 33, 103 and 143, 1965; Nos. 50 and 83, 1966; Nos. 19,
38, 76 and 85, 1967; Nos. 4, 60, 70, 87 and 148, 1968; Nos. 18, 93 and 101,
1969; No. 87, 1970; Nos. 6, 54 and 93, 1971; Nos. 5, 46, 47, 65 and 85, 1972;
Nos. 51, 52, 53, 164 and 165, 1973; No. 216, 1973 (as amended by No. 20,
1974); Nos. 26 and 126, 1974; Nos. 80 and 117, 1975; Nos. 50, 53, 56, 98, 143,
165 and 205, 1976; Nos. 57, 126 and 127, 1977; Nos. 36, 57, 87, 90, 123, 171
and 172, 1978; Nos. 12, 19, 27, 43, 62, 146, 147 and 149, 1979; Nos. 19, 24,
57, 58, 124, 133, 134 and 159, 1980; Nos. 61, 92, 108, 109, 110, 111, 154 and
175, 1981; Nos. 29, 38, 39, 76, 80, 106 and 123, 1982; 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); and Nos. 47, 49, 104 and 123,
1985.
TAXATION LAWS AMENDMENT ACT (No. 4) 1985 No. 173 of 1985
- SECT 4
Income of certain persons serving with an armed force under the control
of the United Nations
4. Section 23AB of the Principal Act is amended by omitting from paragraphs
(5) (c) and (10) (c) "serving on special service within the meaning of the
Repatriation (Special Overseas Service) Act 1962" and substituting "rendering
continuous full-time service outside Australia while the taxpayer was allotted
for duty in an operational area described in item 4, 5, 6, 7 or 8 of Column 1
of Schedule 2 to the Veterans' Entitlements Act 1986".
TAXATION LAWS AMENDMENT ACT (No. 4) 1985 No. 173 of 1985
- SECT 5
Exemption of certain pensions
5. (1) Section 23AD of the Principal Act is amended -
(a) by inserting ", as in force by virtue of sub-section 66 (2) of the
Repatriation Legislation Amendment Act 1985," after "Interim Forces Benefits
Act 1947-1974)" in sub-paragraph (b) (iii) of the definition of "excepted
payment" in sub-section (1);
(b) by inserting ", as in force by virtue of sub-section 66 (2) of the
Repatriation Legislation Amendment Act 1985," after "Interim Forces Benefits
Act 1947-1974)" in paragraph (d) of the definition of "excepted pension" in
sub-section (1); and
(c) by inserting in paragraph (3) (a) "(including pensions and allowances
payable by virtue of sub-section 66 (2) of the Repatriation Legislation
Amendment Act 1985)" after "Seamen's War Pensions and Allowances Act
1940-1973".
(2) Section 23AD of the Principal Act is amended -
(a) by inserting before the definition of "commencing day" in subsection (1)
the following definition:
"'carer's pension' means -
(a) a pension payable under Division 6 of Part III of the
Social Security Act 1947 to or in respect of a person, where the relative for
whom the person is providing constant care and attention in accordance with
Division 6 of Part III of that Act, being a man, has attained
the age of 65 years or, being a woman, has attained the age of 60 years; or
(b) a pension payable under section 85AA of the
Repatriation Act 1920 (including that section as applying by virtue of
Division 5A, 6, 7, 8 or 9 of Part III of that Act or by virtue of the
Repatriation (Special Overseas Service) Act 1962) to or in respect of a
person, where the relative for whom the person is providing constant care and
attention in accordance with section 85AA of the Repatriation Act 1920, being
a man, has attained the age of 65 years or, being a woman, has attained the
age of 60 years;";
(b) by inserting after the definition of "commencing day" in sub-section
(1) the following definition:
"'dependent child', in relation to a person, has the same meaning
as in section 6 of the Social Security Act 1947;";
(c) by inserting "or a carer's pension" after "wife's pension" in
subparagraph
(a) (i) of the definition of "excepted payment" in
subsection
(1);
(d) by omitting "the spouse" from sub-paragraph (b) (ii) of the definition
of "excepted payment" in sub-section (1) and substituting "a
relative";
(e) by omitting "Director-General of Social Security" from sub-paragraph
(c) (i) of the definition of "excepted payment" in sub-section (1)
and substituting "Secretary to the Department of Social Security";
(f) by omitting ", lodging or board and lodging" from paragraph (d) of
the definition of "excepted payment" in sub-section (1);
(g) by omitting "the custody, care and control of a" from paragraph
(e) of the definition of "excepted payment" in sub-section (1) and
substituting "a dependent";
(h) by omitting "the custody, care and control of a" from paragraph
(f) of the definition of "excepted payment" in sub-section (1) and
substituting "a dependent";
(j) by omitting "the spouse" from paragraph (c) of the definition of
"excepted pension" in sub-section (1) and substituting "a relative";
(k) by omitting paragraph (d) of the definition of "prescribed person"
in sub-section (1) and substituting the following paragraph:
"(d) a person to or in respect of whom a carer's pension is
payable;";
(m) by omitting from sub-section (1) the definition of "spouse carer's
pension" and substituting the following definition:
"'rent' has the same meaning as in section 6 of the Social
Security Act 1947;";
(n) by omitting from sub-section (2) "spouse"; and
(o) by omitting from paragraph (4) (h) "Parliamentary Retiring
Allowances Act 1948" and substituting "Parliamentary
Contributory Superannuation Act 1948".
(3) Section 23AD of the Principal Act is amended -
(a) by omitting "section 85AA of the Repatriation Act 1920 (including
that section as applying by virtue of Division 5A, 6, 7, 8 OR 9 of
Part III of that Act or by virtue of the Repatriation (Special
Overseas Service) Act 1962)" from paragraph (b) of the definition
of "carer's pension" in sub-section (1) and substituting "section 41
of the Veterans' Entitlements Act 1986";
(b) by omitting "section 85AA of the Repatriation Act 1920" (last
occurring) from paragraph (b) of the definition of "carer's pension"
in sub-section (1) and substituting "section 41 of that Act";
(c) by omitting sub-paragraph (b) (ii) of the definition of "excepted
payment" in sub-section (1) and substituting the following
subparagraph:
"(ii) Part III (other than section 57) of the Veterans' Entitlements Act 1986
to the extent to which that Part applies to or in respect of the person or a
relative of the person otherwise than by virtue of section 39 of that Act; or";
(d) by omitting "sub-section 66 (2) of the Repatriation Legislation
Amendment Act 1985" from sub-paragraph (b) (iii) of the definition
of "excepted payment" in sub-section (1) and substituting
"subsection 4 (6) of the Veterans' Entitlements (Transitional Provisions and
Consequential Amendments) Act 1986";
(e) by omitting paragraph (e) of the definition of "excepted payment" in
sub-section (1) and substituting the following paragraph:
"(e) so much of a payment of a pension, allowance or benefit
referred to in paragraph (a) or (b) made to or in respect of a person as, in
the opinion of the Commissioner, represents an increase in the rate of that
pension, allowance or benefit that is calculated by reference to another
person or other persons; or";
(f) by omitting paragraph (c) of the definition of "excepted pension"
in sub-section (1) and substituting the following paragraph:
"(c) Part III of the Veterans' Entitlements Act 1986 to the extent
to which that Part applies to or in respect of a person or a
relative of a person by virtue of section 39 of that Act; or";
(g) by omitting "sub-section 66 (2) of the Repatriation Legislation
Amendment Act 1985" from paragraph (d) of the definition of "excepted pension"
in sub-section (1) and substituting "sub-section 4 (6) of the Veterans'
Entitlements (Transitional Provisions and Consequential Amendments) Act 1986";
(h) by omitting paragraph (b) of the definition of "wife's pension" in
sub-section (1) and substituting the following paragraph:
"(b) a wife's service pension payable under Part III of the
Veterans' Entitlements Act 1986 to the wife of a veteran (within the meaning
of that Part), being a veteran who has attained the age of 65 years; or"; and
(j) by omitting paragraph (3) (a) and substituting the following paragraph:
"(a) payments (other than excepted payments) of pensions and
attendant allowances under the Veterans' Entitlements Act 1986 and payments
(other than excepted payments) of pensions and attendant allowances of a like
nature under the Seamen's War Pensions and Allowances Act 1940 (including
payments (other than excepted payments) payable by virtue of sub-section 4 (6)
of the Veterans' Entitlements (Transitional Provisions and Consequential
Amendments) Act 1986);".
TAXATION LAWS AMENDMENT ACT (No. 4) 1985 No. 173 of 1985
- SECT 6
6. After section 26AAAB of the Principal Act the following section is
inserted:
Meals provided to clients, &c., in in-house dining facilities
"26AAAC. (1) Where -
(a) the taxpayer incurs a loss or outgoing in a year of income in respect of
the provision of entertainment, being a loss or outgoing in respect of the
provision of a meal (not being a meal provided at a party, reception or other
social function) on a working day to a person other than -
(i) in any case - an employee of the taxpayer; or
(ii) if the taxpayer is a company - an employee of the taxpayer
or of a company that is related to the taxpayer,
in an in-house dining facility of the taxpayer;
(b) the loss or outgoing is deductible under section 51; and
(c) but for sub-paragraph 51AE (5) (f) (i), the loss or outgoing would not
be deductible under section 51,
the assessable income of the taxpayer of the year of income shall include, in
respect of the meal, $30.
"(2) An expression used in this section and in section 51AE has the same
meaning in this section as in that section.".
TAXATION LAWS AMENDMENT ACT (No. 4) 1985 No. 173 of 1985
- SECT 7
Interpretation
7. Section 27A of the Principal Act is amended -
(a) by inserting after the definition of "immediate annuity" in subsection
(1) the following definitions:
"'immediate annuity eligible termination payment' means a
payment that is an eligible termination payment by virtue of
the application of paragraph (g), (h) or (j) of the definition of 'eligible
termination payment' in relation to an immediate annuity other than an
immediate annuity the whole of the purchase price of which consists of a
rolled-over amount or rolled-over amounts;
'income component', in relation to an eligible termination
payment that is an immediate annuity eligible termination payment by virtue of
the application of paragraph (g), (h) or (j) of the definition of 'eligible
termination payment' in relation to a payment (in this definition referred to
as the 'capital annuity payment') made in respect of a taxpayer, means -
(a) in a case where any amount of the annuity to which
the eligible termination payment relates has been derived by the taxpayer -
the amount ascertained in accordance with the formula A - (B - C), where -
A is the amount of the capital annuity payment;
B is the purchase price of the annuity; and
C is the aggregate of all amounts that would have
been deductible amounts for the purposes of subsection 27H (1) in relation to
amounts of the annuity derived by the taxpayer if the component B in the
formula in sub-section 27H (2) were replaced by a component being the purchase
price of the annuity; or
(b) in any other case - the amount of the capital annuity
payment reduced by the purchase price of the annuity to which the eligible
termination payment relates;";
(b) by inserting after the definition of "life assurance company" in
subsection (1) the following definition:
"'non-qualifying component', in relation to an immediate annuity
eligible termination payment, means -
(a) in a case where the purchase price of the annuity to
which the eligible termination payment relates consists partly of a
rolled-over amount or rolled-over amounts - the amount ascertained in
accordance with
AB
__, where -
C
A is the income component in relation to the eligible
termination payment;
B is so much of the purchase price of the annuity
as does not consist of a rolled-over amount or rolled-over amounts; and
C is the purchase price of the annuity; or
(b) in any other case - the income component in relation
to the eligible termination payment;"; and
(c) by inserting after sub-section (12) the following sub-section:
"(12A) Notwithstanding sub-section (12), an eligible termination
payment shall not be taken to be a qualifying eligible termination payment to
the extent to which it consists of a non-qualifying component.".
TAXATION LAWS AMENDMENT ACT (No. 4) 1985 No. 173 of 1985
- SECT 8
Assessable income to include certain superannuation and kindred
payments
8. Section 27B of the Principal Act is amended -
(a) by omitting from sub-section (1) the definition of component A and
substituting the following definition:
"A is the amount or value of the eligible termination payment -
(a) reduced by the amount of the concessional component
in relation to the eligible termination payment; and
(b) if the eligible termination payment is an immediate
annuity eligible termination payment, reduced also by the non-qualifying
component in relation to the eligible termination payment;"; and
(b) by adding at the end the following sub-section:
"(3) Where in a year of income an immediate annuity eligible
termination payment is made in relation to a taxpayer, the assessable income
of the taxpayer of the year of income shall include the non-qualifying
component (if any) in relation to that eligible termination payment.".
TAXATION LAWS AMENDMENT ACT (No. 4) 1985 No. 173 of 1985
- SECT 9
9. After section 51AD of the Principal Act the following sections are
inserted:
Deductions not allowable for entertainment expenses
"51AE. (1) In this section, unless the contrary intention appears -
'agreement' means any agreement, arrangement or understanding, whether formal
or informal, whether express or implied and whether or not enforceable, or
intended to be enforceable, by legal proceedings;
'business' includes a prospective business;
'eligible dining facility', in relation to a taxpayer, means -
(a) a canteen, dining room or similar facility; or
(b) a cafe, restaurant or similar facility,
that is located on premises of the taxpayer or, if the taxpayer is a company,
of the taxpayer or of a company that is related to the taxpayer;
'eligible relative', in relation to a person, means a relative of the person
and includes another person who, although not legally married to the person,
lives with the person as the husband or wife of the person on a bona fide
domestic basis;
'eligible seminar' means a seminar that has a continuous duration of not less
than 4 hours, but does not include -
(a) a seminar (other than an exempt training seminar) where it
would be concluded that the sole or dominant purpose of the seminar was to
enable participants, or prospective participants, in a particular business to
-
(i) give information relating to the business to;
(ii) receive information relating to the business from; or
(iii) discuss matters relating to the business with,
other participants, or prospective participants, in the business or other
persons;
(b) a seminar where it would be concluded that the sole or
dominant purpose of the seminar was the promotion or advertising of a business
or of goods or services provided by a business; or
(c) a seminar where, having regard to -
(i) the content and location of the seminar; and
(ii) any food, drink, accommodation, travel or
opportunities for recreation connected with the
seminar,
it would be concluded that the sole or dominant purpose of the seminar was the
provision of entertainment at, or in connection with, the seminar;
'employee', in relation to a company, includes a director of the company;
'exempt training seminar' means a seminar that -
(a) is organised by, or on behalf of, an employer solely for either
or both of the following purposes:
(i) training -
(A) the employer and employees of the employer; or
(B) employees of the employer, in matters relevant to the employer's
business;
(ii) enabling -
(A) the employer and employees of the employer;
or
(B) employees of the employer,
to discuss general policy issues relevant to the internal management of the
employer's business; and
(b) is conducted on premises that -
(i) are not premises of the employer or, if the employer
is a company, of the employer or of a company that is related to the employer;
and
(ii) are premises of a person whose business consists of or
includes organising seminars or making available premises for the purposes of
the conduct of seminars;
'industrial instrument' means a law of the Commonwealth or of a State or
Territory or an award, order, determination or industrial agreement in force
under any such law;
'in-house dining facility', in relation to a taxpayer, means a canteen, dining
room or similar facility that is -
(a) located on premises of the taxpayer or, if the taxpayer is a
company, of the taxpayer or of a company that is related to the taxpayer;
(b) operated wholly or principally for providing food and drink
on working days -
(i) in any case - to employees of the taxpayer; or
(ii) if the taxpayer is a company - to employees of the
taxpayer or of a company that is related to the taxpayer; and
(c) not open to the public at any time;
'in-house recreational facility', in relation to a taxpayer, means a
recreational facility that is -
(a) located on premises of the taxpayer or, if the taxpayer is a
company, of the taxpayer or of a company that is related to the taxpayer; and
(b) operated wholly or principally for use on working days by -
(i) in any case - employees of the taxpayer; or
(ii) if the taxpayer is a company - employees of the
taxpayer or of a company that is related to the taxpayer;
'participant', in relation to a business, means a person involved in, or
associated with, the carrying on of the business, whether as an agent,
employee, partner, shareholder, provider of finance, adviser or otherwise;
'premises' includes a vessel or floating structure;
'recreation' includes -
(a) amusement;
(b) sport or similar leisure-time pursuits; and
(c) recreation or amusement provided on, or by means of, a
vehicle, vessel or aircraft;
'recreational facility' means a facility for recreation, but does not include
a facility for accommodation or a facility (other than a food or drink vending
machine) for drinking or dining;
'seminar' includes a conference, convention, lecture, meeting (including a
meeting for the presentation of awards), speech, 'question and answer
session', training session or educational course.
"(2) For the purposes of the definition of 'eligible seminar' in subsection
(1), any part of a seminar that occurs during a meal, and any break during a
seminar for the purpose of a meal, rest or recreation -
(a) shall not be taken to affect the continuity of the seminar; and
(b) shall not be taken to form part of the seminar.
"(3) A reference in this section to the provision of entertainment is a
reference to the provision (whether to the taxpayer or to another person and
whether gratuitously, pursuant to an agreement or otherwise) of -
(a) entertainment by way of food, drink or recreation; or
(b) accommodation or travel in connection with, or for the purpose of
facilitating, entertainment to which paragraph (a) applies (whether or not the
accommodation or travel is also in connection with something else or for
another purpose),
whether or not -
(c) business discussions or business transactions occur;
(d) in connection with the working of overtime or otherwise in
connection with the performance of the duties of any office or
employment;
(e) for the purposes of promotion or advertising; or
(f) at or in connection with a seminar.
"(4) A deduction is not allowable under section 51 in respect of losses or
outgoings incurred after 19 September 1985 to the extent to which they are in
respect of the provision of entertainment.
"(5) Sub-section (4) does not apply to a loss or outgoing incurred by the
taxpayer in a year of income to the extent to which -
(a) in a case where the taxpayer carries on a business that consists of,
or includes, the provision for payment of entertainment to clients
or customers of that business - the loss or outgoing is in respect of
the provision of that entertainment by the taxpayer for payment in
the ordinary course of that business;
(b) the loss or outgoing is incurred by the taxpayer -
(i) in respect of the provision of entertainment to another person
under a contract between the taxpayer and that other person
for the supply of goods or services to that other person in
the ordinary course of a business carried on by the taxpayer;
and
(ii) for the purpose of promoting or advertising to the public -
(A) a business carried on by the taxpayer; or
(B) goods or services provided by a business carried on by the
taxpayer;
(c) the loss or outgoing is incurred by the taxpayer for the purpose of
promoting or advertising to the public goods or services provided by a
business carried on by the taxpayer, being a loss or outgoing
incurred in providing or exhibiting those goods or services;
(d) the loss or outgoing is in respect of entertainment provided by the
taxpayer -
(i) for the purpose of promoting or advertising to the public -
(A) a business carried on by the taxpayer or another
person; or
(B) goods or services provided by a business carried on by
the taxpayer or another person; and
(ii) on the basis that the opportunities available to any of the
following:
(A) clients, customers or suppliers of the taxpayer or the
other person;
(B) employees of the taxpayer or the other person;
(C) any other associates of the taxpayer or the other
person;
(D) journalists;
(E) dignitaries;
(F) any other special class of persons,
to obtain the benefits of the entertainment are not greater than those of
ordinary members of the public;
(e) the loss or outgoing is incurred by the taxpayer by way of an
allowance to an employee of the taxpayer, being an allowance that
is included in the assessable income of the employee;
(f) the loss or outgoing is incurred by the taxpayer in respect of -
(i) the provision of food and drink (not being food or drink
provided at a party, reception or other social function) on
working days to persons in an in-house dining facility of the
taxpayer in respect of which the taxpayer has not made an
election under sub-paragraph (ii) in relation to the year of
income;
(ii) in a case where the taxpayer elects that this sub-paragraph
shall apply to the taxpayer in relation to an in-house dining
facility of the taxpayer in relation to the year of income, the
provision of food and drink (not being food or drink provided
at a party, reception or other social function) on working
days -
(A) in any case - to employees of the taxpayer; or
(B) if the taxpayer is a company - to employees of the
taxpayer or of a company that is related to the
taxpayer,
in that in-house dining facility of the taxpayer;
(iii) the provision, in an eligible dining facility of the taxpayer, of
food and drink (not being food or drink provided at a party,
reception or other social function) on working days -
(A) in any case - to employees of the taxpayer; or
(B) if the taxpayer is a company - to employees of the
taxpayer or of a company that is related to the
taxpayer,
being employees the duties of whose employment consist of, or consist
principally of, duties to be performed in, or in connection with -
(C) that eligible dining facility; or
(D) a facility for the provision of accommodation,
recreation or travel of which the eligible dining facility
forms part;
(iv) the provision of entertainment to a person (including the
taxpayer) that -
(A) is reasonably incidental to the person's attendance at
an eligible seminar; and
(B) is not by way of, or in connection with, the recreation
of the person;
(v) the provision of an in-house recreational facility of the
taxpayer; or
(vi) the provision of food or drink to an employee of the taxpayer
pursuant to the provisions of an industrial instrument relating to overtime;
(g) the loss or outgoing is incurred by the taxpayer in respect of the
provision of entertainment to a person (in this paragraph referred to as the
'recipient') being -
(i) the taxpayer;
(ii) an employee of the taxpayer; or
(iii) a person who, although not employed by the taxpayer, is
performing services for the taxpayer,
where -
(iv) in a case to which sub-paragraph (ii) or (iii) applies - a
deduction would, but for this section, be allowable to the
recipient under section 51 in respect of the loss or outgoing
if it were incurred by the recipient; and
(v) in any case - it would not be concluded that a purpose of
the taxpayer or, in a case to which sub-paragraph (ii) or (iii) applies, of
the taxpayer or the recipient, in relation to the provision of the
entertainment, is to enable or facilitate the provision of entertainment to a
person other than the recipient;
(h) in a case where -
(i) the taxpayer is an employee and the duties of the taxpayer's
employment consist of, or include, the provision of entertainment; and
(ii) the employer of the taxpayer carries on a business that
consists of, or includes, the provision for payment of that entertainment to
clients or customers of that business,
the loss or outgoing is incurred by the taxpayer in respect of the provision
of that entertainment in the performance of those duties;
(j) in a case where the taxpayer is an employee and receives an
allowance pursuant to the provisions of an industrial instrument for
the purpose of enabling the taxpayer to purchase food and drink in
connection with overtime worked by the taxpayer - the loss or
outgoing is incurred by the taxpayer in respect of the purchase of
food or drink in connection with that overtime; or
(k) the loss or outgoing is incurred by the taxpayer in providing
gratuitous
entertainment to members of the public who are sick, disabled, poor
or otherwise disadvantaged.
"(6) Paragraph (5) (a) or (b) does not apply in relation to a loss or
outgoing incurred by a taxpayer in respect of the provision of entertainment
to another person for payment or under a contract, as the case may be, if the
Commissioner is satisfied that the entertainment was provided instead of
entertainment that the taxpayer could reasonably be expected to have provided
to that other person, otherwise than for payment or otherwise than under a
contract, as the case may be, if this section had not been enacted.
"(7) Where -
(a) an eligible relative of an employee of an employer provides or
facilitates the provision of, or is expected by the employer to provide
or facilitate the provision of, entertainment in connection with the
employee's employment;
(b) the employer provides an allowance to the eligible relative in respect
of the provision or facilitation of the provision of that entertainment;
and
(c) the allowance is provided by the employer to the eligible relative in
the capacity of an employee of the employer,
the allowance shall not be taken, for the purposes of paragraph (5) (e), to be
an allowance provided to an employee of the employer.
"(8) For the purposes of calculating, in accordance with section 90, the net
income, or partnership loss, of a partnership, sub-section (7) and the
definition of 'exempt training seminar' in sub-section (1) apply as if each
partner in the partnership were an employee of the partnership.
"(9) An election for the purposes of sub-paragraph (5) (f) (ii) in respect
of an in-house dining facility in relation to a year of income -
(a) shall be exercised by notice in writing to the Commissioner; and
(b) shall be lodged with the Commissioner on or before the date of lodgment
of the return of income of the taxpayer for the year of income, or before such
later date as the Commissioner allows.
"(10) Paragraphs (5) (g) and (h) do not apply in relation to -
(a) a loss or outgoing incurred by the taxpayer to the extent to which the
loss or outgoing is -
(i) in respect of the provision of entertainment to a person
(including the taxpayer) that is in respect of, or incidental to, the person's
attendance, while undertaking deductible travel, at a seminar other than -
(A) an exempt training seminar; or
(B) a seminar to which paragraph (a) of the definition of
'eligible seminar' in sub-section (1) applies (whether or not the seminar has
a continuous duration of not less than 4 hours),
not being the provision of entertainment consisting of -
(C) accommodation or travel; or
(D) entertainment by way of food or drink otherwise than
at a meal during which, or during part of which, the whole or a part of the
seminar occurs; or
(ii) in respect of the provision of entertainment to a person
(including the taxpayer) that is in respect of, or incidental to, the person's
attendance, otherwise than while undertaking deductible travel, at a seminar;
or
(b) a loss or outgoing incurred by the taxpayer to the extent to which the
loss or outgoing is in respect of the purchase of food or drink in connection
with overtime worked by the taxpayer as an employee.
"(11) A reference in sub-section (10) to deductible travel is a reference to
travel undertaken by a person in circumstances where, if the person incurred
expenditure in taking meals by himself or herself in the course of undertaking
that travel, a deduction would, but for this section, be allowable to the
person under section 51 in respect of that expenditure.
"(12) Nothing in sub-section (5) shall be taken, by implication, to extend
the class of losses or outgoings that are deductible under section 51.
"(13) Where, under an agreement -
(a) a taxpayer incurs a loss or outgoing; and
(b) non-deductible entertainment is provided to the taxpayer or another
person,
the Commissioner may, for the purposes of this section, treat the loss or
outgoing as having been incurred by the taxpayer in respect of the provision
of that entertainment to such extent as the Commissioner considers reasonable.
"(14) Where property is used by the taxpayer after 19 September 1985 for the
purpose of providing, or in connection with the provision of, nondeductible
entertainment (whether or not the property is also used for another purpose),
that use of the property by the taxpayer shall be taken, for the purposes of
this Act (other than Subdivision B of this Division), not to be for the
purpose of producing assessable income or in carrying on a business for that
purpose.
"(15) For the purposes of sub-sections (13) and (14), the provision of
entertainment shall be taken to be the provision of non-deductible
entertainment if, by virtue of sub-section (4), had a loss or outgoing been
incurred by the taxpayer after 19 September 1985 in respect of the provision
of the entertainment, the loss or outgoing would not be deductible.
"(16) For the purposes of this section, a company shall be taken to be
related to another company if -
(a) one of the companies is a subsidiary of the other company; or
(b) each of the companies is a subsidiary of the same company.
"(17) For the purposes of this section, a company (in this sub-section
referred to as the 'subsidiary company') shall be taken to be the subsidiary
of another company (in this sub-section referred to as the 'holding company')
if -
(a) all the shares in the subsidiary company are beneficially owned by -
(i) the holding company;
(ii) a company that is, or 2 or more companies each of which
is, a subsidiary of the holding company; or
(iii) the holding company and a company that is, or 2 or more
companies each of which is, a subsidiary of the holding company; and
(b) there is no agreement in force by virtue of which any person is in a
position to affect rights of the holding company or of a subsidiary of the
holding company in relation to the subsidiary company.
"(18) For the purposes of this section, where a company is a subsidiary of
another company (including a company that is such a subsidiary by virtue of
another application or other applications of this sub-section), every company
that is a subsidiary of the first-mentioned company shall be taken to be a
subsidiary of that other company.
"(19) For the purposes of sub-section (17), a person shall be taken to be in
a position to affect any rights of a company in relation to another company if
that person has a right, power or option (whether by virtue of any provision
in the constituent document of either of those companies or by virtue of any
agreement or instrument or otherwise) to acquire those rights or do an act or
thing that would prevent the first-mentioned company from exercising those
rights for its own benefit or receiving any benefits accruing by reason of
those rights.
Car expenses incurred by employee
"51AF. (1) Where -
(a) during a particular period, an employer provides a car for the exclusive
use of a person who is, or of persons any of whom is, an employee of the
employer or an eligible relative of such an employee; and
(b) at any time during that period, the employee or an eligible relative of
the employee is entitled to use the car for private purposes,
a deduction is not allowable under this Act in respect of a car expense that
relates to the car and -
(c) is incurred by the employee during that period; or
(d) is incurred by the employee and is wholly or partly attributable to
that period.
"(2) Expressions used in this section and in Subdivision F have the same
respective meanings in this section as they have in that Subdivision.
Deductions for travel expenses where person accompanied by eligible
relative
"51AG. (1) Where a person, while undertaking travel in the course of -
(a) performing duties as an employee of an employer; or
(b) a business carried on by the person for the purpose of gaining or
producing assessable income,
is accompanied during a particular period by an eligible relative of the
person in circumstances where -
(c) the eligible relative is not an employee of the employer of the
person, or is not an employee of the person, as the case may be;
(d) the eligible relative is an employee of the employer of the person,
or is an employee of the person, as the case may be, and during
that period performs no substantial duties as such an employee; or
(e) the eligible relative is an employee of the employer of the person,
or is an employee of the person, as the case may be, and -
(i) the duties performed during that period by the eligible relative
as such an employee are incidental to the duties, or business,
as the case may be, of the person; and
(ii) it is reasonable to conclude that, but for the personal
relationship between the person and the eligible relative, the
eligible relative would not have accompanied the person during that period,
a deduction is not allowable to the person, and, in a case where paragraph (a)
applies, is not allowable to the employer of the person, under section 51 in
respect of a loss or outgoing incurred in respect of the travel, to the extent
to which the loss or outgoing is attributable to the eligible relative.
"(2) In this section, 'eligible relative', 'employee' and 'employer' have
the same respective meanings as those expressions have in Subdivision F.".
TAXATION LAWS AMENDMENT ACT (No. 4) 1985 No. 173 of 1985
- SECT 10
10. After section 74A of the Principal Act the following section is
inserted:
Certain election expenses not deductible
"74B. (1) Expenditure incurred by a taxpayer after 19 September 1985 is not
an allowable deduction under section 74 or 74A to the extent to which the
expenditure is in respect of the provision of entertainment other than
entertainment that is available to the public generally.
"(2) Sub-section (1) does not prevent a deduction being allowable to the
taxpayer in respect of expenditure incurred by the taxpayer in respect of the
provision of entertainment to the taxpayer by way of the provision of food or
drink to the taxpayer if it would not be concluded that a purpose of the
taxpayer in relation to the provision of the food or drink was to enable or
facilitate the provision of entertainment to another person.
"(3) A reference in this section to the provision of entertainment has the
same meaning as in section 51AE.".
TAXATION LAWS AMENDMENT ACT (No. 4) 1985 No. 173 of 1985
- SECT 11
Deduction of expenditure on conserving or conveying water
11. Section 75B of the Principal Act is amended -
(a) by omitting sub-section (2) and substituting the following subsection:
"(2) Subject to this section, this section applies to expenditure of a
capital nature incurred on or after 14 April 1980 and before 20 September 1985
by a taxpayer who carries on a business of primary production on land in
Australia, being expenditure incurred -
(a) on the construction, acquisition or installation of plant or a
structural improvement for the purpose of conserving or conveying water for
use in carrying on that business on that land; or
(b) on the construction, acquisition or installation of an extension to
plant or to a structural improvement for the purpose of conserving or
conveying water for use in carrying on that business on that land.";
(b) by inserting in sub-section (3) "by virtue of sub-section (2)" after
"applies";
(c) by inserting after sub-section (3) the following sub-sections:
"(3A) Subject to this section, this section also applies to
expenditure of a capital nature incurred on or after 20 September 1985 by a
taxpayer who carries on a business of primary production on land in Australia,
being expenditure incurred -
(a) on the construction, acquistion or installation of plant or a
structural improvement primarily and principally for the purpose of conserving
or conveying water for use in carrying on that business on that land; or
(b) on the construction, acquisition or installation of an extension
to plant or to a structural improvement primarily and principally for the
purpose of conserving or conveying water for use in carrying on that business
on that land.
"(3B) Subject to the succeeding provisions of this section, where
a taxpayer incurs expenditure to which this section applies by virtue of
sub-section (3A), an amount equal to one-fifth of that expenditure is an
allowable deduction to the taxpayer in respect of the year of income in which
the expenditure is incurred and in respect of each of the 4 succeeding years
of income.
"(3C) For the purposes of this section -
(a) expenditure incurred on or after 20 September 1985 in
pursuance of a contract entered into by a taxpayer on or after 14 April 1980
and before 20 September 1985; or
(b) expenditure incurred on or after 20 September 1985 on the
construction or installation by a taxpayer of plant or a structural
improvement or of an extension to plant or to a structural improvement where
that construction or installation by the taxpayer commenced on or after 14
April 1980 and before 20 September 1985,
shall be deemed to have been incurred on or after 14 April 1980 and before 20
September 1985."; and
(d) by inserting in sub-section (10) "or (3B)" after "sub-section (3)".
TAXATION LAWS AMENDMENT ACT (No. 4) 1985 No. 173 of 1985
- SECT 12
Deduction of expenditure on prevention of land degradation
12. Section 75D of the Principal Act is amended -
(a) by inserting in paragraphs (1) (a), (b) and (c) "primarily and
principally" after "an operation";
(b) by omitting from paragraph (1) (c) "soil erosion" and substituting "land
degradation";
(c) by inserting in paragraph (1) (d) "primarily and principally" after "on
the land";
(d) by omitting from paragraph (1) (d) "soil erosion or excessive salinity"
and substituting "land degradation";
(e) by omitting from paragraph (1) (d) "soil erosion or salinity" and
substituting "land degradation"; and
(f) by inserting in paragraph (1) (f) "primarily and principally" after "on
the land,".
TAXATION LAWS AMENDMENT ACT (No. 4) 1985 No. 173 of 1985
- SECT 14
14. After section 82KS of the Principal Act the following Subdivision is
inserted in Division 3 of Part III:
"Subdivision F - Substantiation of Certain Expenses
Interpretation
"82KT. (1) In this Subdivision, unless the contrary intention appears -
'car' means a motor vehicle (including a vehicle known as a four wheel drive
vehicle), being -
(a) a motor car, station wagon, panel van, utility truck or similar
vehicle; or
(b) any other road vehicle designed to carry a load of less than
1 tonne or fewer than 9 passengers,
but does not include a motor cycle or similar vehicle; 'car expense' means an
outgoing incurred in connection with a car and, without limiting the
generality of the foregoing, includes -
(a) an outgoing incurred in connection with the operation of a
car;
(b) expenditure incurred in connection with borrowing money
for the purpose of acquiring a car;
(c) expenditure (other than a payment of principal or interest)
incurred in connection with the discharge of a mortgage given
as security for -
(i) the repayment of money borrowed for the purpose of
acquiring a car; or
(ii) the payment of the whole or a part of the cost of
acquiring a car;
(d) in a case where a car is leased -
(i) expenditure incurred by the lessee in connection with
the lease; and
(ii) without limiting the generality of sub-paragraph (i),
expenditure incurred by the lessee for the preparation,
registration and stamping of the lease, or of an
assignment or surrender of the lease;
(e) a payment of interest on money borrowed for the purpose
of acquiring a car or on the outstanding balance of the cost
of acquiring a car;
(f) expenditure incurred for repairs to a car; and
(g) depreciation in respect of a car,
but does not include -
(h) such an outgoing incurred, such expenditure incurred, or
such a payment made, in respect of travel outside Australia;
or
(j) a taxi fare or similar expense;
'depreciation' means depreciation that is, or would but for this Subdivision
be, allowable under this Act;
'elect' means elect in accordance with this Subdivision;
'eligible expense' means -
(a) in relation to a meal allowance - an outgoing incurred, by a
taxpayer to whom the allowance was paid or is payable, in respect of the
purchase of food or drink to which the allowance relates; or
(b) in relation to a travel allowance - an outgoing incurred, by a
taxpayer to whom the allowance was paid or is payable, in respect of the
travel to which the allowance relates, being an outgoing in respect of
accommodation, in respect of the purchase of food or drink, or in respect of
expenditure incidental to the travel;
'eligible relative', in relation to a person, means a relative of the person
and includes another person who, although not legally married to the person,
lives with the person as the husband or wife of the person on a bona fide
domestic basis;
'employee' means an employee as defined in section 221A and, whether or not
the Governor-General has entered into an arrangement in accordance with
section 221B with the Governor in Council of the State concerned, includes a
member of the Parliament of a State and a person employed by a State or by an
authority of a State;
'employer' means an employer as defined in section 221A and, whether or not
the Governor-General has entered into an arrangement in accordance with
section 221B with the Governor in Council of the State concerned, includes a
State and an authority of a State;
'employment-related expense' means an outgoing incurred by a taxpayer in
producing salary or wages of the taxpayer, and, without limiting the
generality of the foregoing, includes -
(a) in a case where, during a year of income, a taxpayer -
(i) incurred an outgoing by way of a periodical
subscription to a trade, business or professional association; and
(ii) derived salary or wages,
that outgoing;
(b) expenditure incurred by a taxpayer in connection with
borrowing money used by the taxpayer wholly or partly for the purpose of
producing salary or wages of the taxpayer;
(c) expenditure (other than a payment of principal or interest)
incurred by a taxpayer in connection with the discharge of a mortgage given by
the taxpayer as security for -
(i) the repayment of money borrowed by the taxpayer;
or
(ii) the payment by the taxpayer of the whole or a part
of the purchase price of property purchased by the taxpayer,
where that money or property was used by the taxpayer wholly or partly for the
purpose of producing salary or wages of the taxpayer;
(d) in a case where property leased to a taxpayer was used by
the taxpayer wholly or partly for the purpose of producing salary or wages of
the taxpayer -
(i) expenditure incurred by the taxpayer in connection
with the lease; and
(ii) without limiting the generality of sub-paragraph (i),
expenditure incurred by the taxpayer for the preparation, registration and
stamping of the lease, or of an assignment or surrender of the lease;
(e) a payment of interest on money borrowed by a taxpayer
where that money was used by the taxpayer wholly or partly
for the purpose of producing salary or wages of the taxpayer;
(f) expenditure incurred by a taxpayer for repairs to any premises,
or part of premises, plant, machinery, implements, utensils,
or articles held, occupied or used by the taxpayer wholly or
partly for the purpose of producing salary or wages of the
taxpayer;
(g) depreciation in respect of property owned by a taxpayer
and -
(i) used by the taxpayer; or
(ii) installed ready for use,
wholly or partly for the purpose of producing salary or wages
of the taxpayer; and
(h) expenditure incurred by a taxpayer in respect of which a
deduction is, or would but for this Subdivision be, allowable
under section 74 or 74A,
but does not include a car expense, a travel expense or an eligible expense in
relation to a meal allowance or in relation to a travel allowance;
'expense' means -
(a) a car expense, an employment-related expense, or a travel
expense, incurred by a taxpayer; or
(b) an eligible expense incurred by a taxpayer in relation to a
meal allowance or in relation to a travel allowance;
'industrial instrument' means a law of the Commonwealth or of a State or
Territory or an award, order, determination or industrial agreement in force
under any such law;
'meal allowance' means an allowance paid or payable to an employee for the
purpose of enabling the employee to purchase food and drink, but does not
include any part of a travel allowance;
'outgoing' includes a loss;
'overtime meal allowance' means a meal allowance paid or payable to an
employee, pursuant to the provisions of an industrial instrument, for the
purpose of enabling the employee to purchase food and drink in connection with
overtime worked by the employee;
'person' includes a partnership;
'relevant car documents', in relation to a car expense that relates to a car
and is incurred by a taxpayer during a year of income, means the following
documents:
(a) a daily log book or similar document in which, in respect of
each journey undertaken in the car during the year of income in the course of
producing assessable income of the taxpayer, an entry setting out particulars
of -
(i) the date on which the journey began and the date on
which it ended;
(ii) the respective odometer readings of the car at the
beginning and end of the journey;
(iii) the number of kilometres travelled by the car in the
course of the journey;
(iv) the purpose or purposes of the journey;
(v) the name of the person, or the names of the persons,
driving the car on that journey;
(vi) the date on which the entry is made; and
(vii) the name of the person by whom the entry is made,
is made in the English language at, or as soon as reasonably practicable
after, the end of the journey, and that, in relation to each such entry so
made, is signed, at the time when the entry is made, by the person who made
the entry;
(b) a document in which particulars of -
(i) the odometer reading of the car at the commencement
of the year of income or, if the first use of the car in
the course of producing assessable income of the
taxpayer occurred during the year of income, at the
commencement of that use;
(ii) the odometer reading of the car at the end of the
year of income or, if the last use of the car by the
taxpayer occurred during the year of income, at the
end of that use;
(iii) the respective dates on which the entries are made;
and
(iv) the name of the person, or the names of the respective
persons, by whom the entries are made,
are entered in the English language, and that is signed by the person or
persons referred to in sub-paragraph (iv), at, or as soon as reasonably
practicable after, the respective times to which those odometer readings
relate;
'retention period', in relation to an expense incurred by a taxpayer during a
year of income, means the period commencing on the day on which documentary
evidence of the expense was obtained by or on behalf of the taxpayer and
ending at the end of the period of -
(a) in a case where the expense is a car expense and, at any
time during the year of income, the car to which the expense
relates is used in the course of producing assessable income
of the taxpayer, not being salary or wages - 7 years;
(b) in a case where the expense is a travel expense and, while
undertaking the travel to which the expense relates, the
taxpayer engages in an activity in the course of producing
assessable income of the taxpayer, not being salary or wages -
7 years; or
(c) in any other case - 3 years and 6 months,
that commences on the day on which the taxpayer lodges a return of income of
the taxpayer of the year of income, or, if at the end of that period of 7
years, or 3 years and 6 months, as the case may be, an objection, or a request
for amendment of an assessment (not being an objection), relating to the
expense or to matters including the expense, or a review or appeal arising out
of such an objection, has not been determined or otherwise finally disposed
of, ending on the day on which the objection (and any review or appeal arising
out of it), the request, or the review or appeal (and any appeal or further
appeal arising out of it), as the case may be, has or have been determined or
so disposed of;
'salary or wages' means assessable income, being salary or wages as defined by
section 221A;
'taxpayer' does not include a company or a person in the capacity of a
trustee;
'travel allowance' means an allowance paid by an employer to an employee for
the purpose of enabling the employee to incur, in respect of travel away from
the employee's ordinary place of residence undertaken in the course of
performing duties as an employee of the employer, outgoings in respect of
accommodation, in respect of the purchase of food and drink, and in respect of
expenditure incidental to the travel;
'travel diary', in relation to particular travel undertaken by a taxpayer,
means a diary or similar document in which the taxpayer has made, as mentioned
in sub-section 82KZ (2), entries relating to activities engaged in by the
taxpayer while undertaking the travel;
'travel expense' means an outgoing incurred by a person in respect of -
(a) travel by the person outside Australia; or
(b) travel by the person within Australia that involves the person being
away from the person's ordinary place of residence for a continuous period
including more than 5 nights,
but does not include a car expense or an eligible expense in relation to a
travel allowance.
"(2) For the purposes of this Subdivision, where -
(a) during a particular period during a day, 2 or more journeys are
undertaken in a car; and
(b) each of the journeys undertaken in the car during that period is
undertaken in the course of producing assessable income of a
particular taxpayer,
the journeys referred to in paragraph (b) shall be deemed to constitute a
single journey.
"(3) For the purposes of this Subdivision, where a car expense or an
employment-related expense is constituted by depreciation of property, being
depreciation that is, or would but for this Subdivision be, an allowable
deduction to a taxpayer in respect of a particular year of income, the expense
shall be taken to be incurred by the taxpayer on the last day of the year of
income.
"(4) Except so far as the contrary intention appears, a reference in this
Subdivision to producing assessable income, or assessable income of a
particular kind, includes a reference to -
(a) gaining assessable income, or assessable income of that kind, as the
case may be; or
(b) except in the case of salary or wages - carrying on a business for
the purpose of gaining or producing assessable income, or assessable
income of that kind, as the case may be.
"(5) A reference in this Subdivision to a business of a particular kind that
is carried on by a person includes a reference to a business of that kind that
is carried on by the person as part of, or in conjunction with, any other
business.
"(6) For the avoidance of doubt, it is declared that -
(a) nothing in this Subdivision shall be taken by implication to affect
the interpretation or application of this Act as in force at any time
before the commencement of this Subdivision; and
(b) nothing in this Subdivision (other than paragraphs 82KW (2) (a)
and (3) (a) and (b) and 82KX (1) (a)) entitles a taxpayer to a
deduction to which the taxpayer would not have been entitled if
this Subdivision had not been enacted.
Documentary evidence
"82KU. (1) A reference in this Subdivision to documentary evidence of an
expense incurred by a taxpayer is, except in the case of depreciation, a
reference to a document, being a receipt, invoice or similar document, that -
(a) sets out -
(i) in any case - in the English language; or
(ii) in a case where the expense was incurred outside Australia -
in a language of the country where the expense was incurred,
particulars of -
(iii) the date on which the expense was incurred;
(iv) unless sub-paragraph (v) applies - the name of the person
who supplied the goods or services to which the expense
relates;
(v) if the goods or services to which the expense relates were
supplied in the course of a business carried on by a person -
the name of the person or the business name under which
the person carries on the business;
(vi) the amount of the expense expressed in the currency in
which the expense was incurred;
(vii) the nature of those goods or services; and
(viii) the date on which the document was made out;
(b) is signed, and supplied, by or on behalf of the person referred to in
sub-paragraph (a) (iv) or (v), as the case may be; and
(c) is obtained by or on behalf of the taxpayer at, or as soon as
reasonably practicable after, the time when the expense is incurred.
"(2) A reference in this Subdivision to documentary evidence of an expense
incurred by a taxpayer is, in the case of depreciation in respect of property,
a reference to a document, being a receipt, invoice or similar document, that
-
(a) sets out -
(i) in any case - in the English language; or
(ii) in a case where the property was imported into Australia by
or on behalf of the taxpayer - in a language of the country
from which the property was originally exported,
particulars of -
(iii) the date on which the property was acquired by the taxpayer;
(iv) unless sub-paragraph (v) applies - the name of the person
from whom the property was acquired by the taxpayer;
(v) if the property was supplied in the course of a business
carried on by a person - the name of the person or the
business name under which the person carries on the business;
(vi) the cost of the property to the taxpayer; and
(vii) the date on which the document was made out;
(b) is signed, and supplied, by or on behalf of the person referred to in
sub-paragraph (a) (iv) or (v), as the case may be; and
(c) is obtained by or on behalf of the taxpayer before, at, or as soon as
reasonably practicable after, the time when the property is first used, or is
installed ready for use, for the purpose of producing -
(i) in a case where the property is a car - assessable income of
the taxpayer; or
(ii) in any other case - salary or wages of the taxpayer.
- SECT 19
Amendment of assessments
19. Section 170 of the Principal Act is amended by inserting in subsection
(10) "or F" after "Subdivision E".
TAXATION LAWS AMENDMENT ACT (No. 4) 1985 No. 173 of 1985
- SECT 20
Interpretation
20. Section 251R of the Principal Act is amended by omitting subsection (1)
and substituting the following sub-section:
"(1) In this Part, 'Medicare levy' or 'levy' means Medicare levy imposed as
such by any Act as assessed under this Act.".
TAXATION LAWS AMENDMENT ACT (No. 4) 1985 No. 173 of 1985
- SECT 21
Prescribed persons
21. Section 251U of the Principal Act is amended by omitting from paragraph
(1) (b) "any of the Repatriation Acts" and substituting "the Veterans'
Entitlements Act 1986 or the Seamen's War Pensions and Allowances Act 1940".
TAXATION LAWS AMENDMENT ACT (No. 4) 1985 No. 173 of 1985
- SECT 22
Release of liability of members of the Defence Force on death
22. Section 265A of the Principal Act is amended -
(a) by omitting from sub-section (3) "the Repatriation Act 1920-1962,
the Repatriation (Far East Strategic Reserve) Act 1956-1962 or the
Repatriation (Special Overseas Service) Act 1962" and substituting
"Part II or IV of the Veterans' Entitlements Act 1986";
(b) by inserting in sub-section (3) "or veterans" after "members of the
Forces"; and
(c) by omitting from sub-section (4) "in respect of his death" and
substituting ", or any decision of an authority constituted under the
Veterans' Entitlements Act 1986 on a question affecting the right of a
dependant of a deceased veteran to a pension under Part II or IV of that Act,
in respect of his or her death".
TAXATION LAWS AMENDMENT ACT (No. 4) 1985 No. 173 of 1985
- SECT 23
Application of amendments
23. (1) In this section, "amended Act" means the Principal Act as amended by
this Part.
(2) The amendments made by sections 7 and 8 apply in relation to the
commutation, or payment of the residual capital value, after 22 August 1985 of
any eligible annuity purchased on or after 1 July 1983.
(3) Neither section 26AAAC nor section 51AE of the amended Act applies in
relation to a loss or outgoing to the extent to which it is incurred by a
taxpayer before 15 November 1985 in respect of the provision of food and drink
on working days to persons in an in-house dining facility of the taxpayer, not
being food or drink provided at a party, reception or other social function.
(4) Section 51AF of the amended Act applies in relation to a car expense, as
defined in sub-section 82KT (1) of the amended Act, incurred on or after 1
July 1986.
(5) Section 51AG of the amended Act applies in relation to a loss or
outgoing incurred on or after 1 July 1986.
(6) The amendments made by sections 11 and 12 apply to expenditure incurred
on or after 20 September 1985.
(7) Subdivision F of Division 3 of Part III of the amended Act (other than
sub-section 82KY (5) of the amended Act) applies in relation to an expense, as
defined in sub-section 82KT (1) of the amended Act, incurred by a taxpayer
during a year of income commencing on or after 1 July 1986.
(8) The amendments made by section 18 apply to assessments in respect of
income of the year of income in which 28 August 1982 occurred and of all
subsequent years of income.
TAXATION LAWS AMENDMENT ACT (No. 4) 1985 No. 173 of 1985
- SECT 25
Principal Act
25. The Income Tax (Individuals) Act 1985*2* is in this Part referred to as
the Principal Act.
*2*No. 124, 1985.
TAXATION LAWS AMENDMENT ACT (No. 4) 1985 No. 173 of 1985
- SECT 26
Title
26. The title of the Principal Act is amended by omitting "corporate" and
substituting "prescribed".
TAXATION LAWS AMENDMENT ACT (No. 4) 1985 No. 173 of 1985
- SECT 27
Interpretation
27. Section 3 of the Principal Act is amended -
(a) by omitting from sub-section (1) the definition of "corporate unit
trust"; and
(b) by inserting after the definition of "ineligible approved deposit fund"
the following definition:
"'prescribed unit trust' means a trust estate that -
(a) is a corporate unit trust within the meaning of Division
6B of Part III of the Assessment Act; or
(b) is a public trading trust within the meaning of Division
6C of Part III of the Assessment Act;".
TAXATION LAWS AMENDMENT ACT (No. 4) 1985 No. 173 of 1985
- SECT 28
Imposition of income tax
28. Section 5 of the Principal Act is amended by omitting from paragraph (2) (c)
"corporate" and substituting "prescribed".
TAXATION LAWS AMENDMENT ACT (No. 4) 1985 No. 173 of 1985
- SECT 29
Principal Act
29. The Income Tax (International Agreements) Act 1953*3* is in this Part
referred to as the Principal Act.
*3*No. 82, 1953, as amended. For previous amendments, see No. 25, 1958; No.
88, 1959; Nos, 19 and 29, 1960; No. 71, 1963; No. 112, 1964; No. 105, 1965;
No. 17, 1966; Nos. 39 and 86, 1967; No. 3, 1968; No. 24, 1969; No. 48, 1972;
Nos. 11 and 216, 1973; No. 129, 1974; No. 119, 1975; Nos. 52, 55 and 143,
1976; No. 134, 1977; No. 87, 1978; Nos. 23 and 127, 1980; Nos. 28, 110, 143
and 154, 1981; Nos. 51 and 57, 1983; Nos. 123 and 125, 1984.
TAXATION LAWS AMENDMENT ACT (No. 4) 1985 No. 173 of 1985
- SECT 30
Interpretation
30. Section 3 of the Principal Act is amended -
(a) by inserting after the definition of "foreign tax" in sub-section (1)
the following definition:
"'prescribed trust estate', in relation to a year of income, means
a trust estate that -
(a) is a corporate unit trust, within the meaning of Division
6B of Part III of the Assessment Act, in relation to the year of income; or
(b) is a public trading trust, within the meaning of Division
6C of Part III of the Assessment Act, in relation to the year of income;";
(b) by omitting from sub-section (4) "corporate unit trust, within the
meaning of Division 6B of Part III of the Assessment Act," and substituting
"prescribed trust estate";
(c) by omitting from sub-section (11) "corporate unit trust" and
substituting "prescribed trust estate"; and
(d) by omitting from sub-section (12) the definition of "corporate unit
trust".
TAXATION LAWS AMENDMENT ACT (No. 4) 1985 No. 173 of 1985
- SECT 31
Ascertainment of Australian tax
31. Section 15 of the Principal Act is amended by omitting from sub-section
(5A) "corporate unit trust, within the meaning of Division 6B of Part III of
the Assessment Act," and substituting "prescribed trust estate".
TAXATION LAWS AMENDMENT ACT (No. 4) 1985 No. 173 of 1985
- SECT 32
Withholding tax
32. Section 17A of the Principal Act is amended by omitting sub-section (3)
and substituting the following sub-section:
"(3) In sub-section (2), 'unit trust dividend' means a unit trust dividend
within the meaning of Division 6B or 6C of Part III of the Assessment Act.".
TAXATION LAWS AMENDMENT ACT (No. 4) 1985 No. 173 of 1985
- SECT 33
Principal Act
33. The Income Tax (Rates) Act 1982*4* is in this Part referred to as the
Principal Act.
*4*No. 105, 1982, as amended. For previous amendments, see Nos. 15 and 104,
1983; and No. 98, 1984.
TAXATION LAWS AMENDMENT ACT (No. 4) 1985 No. 173 of 1985
- SECT 34
Title
34. The title of the Principal Act is amended by omitting "corporate" and
substituting "prescribed".
TAXATION LAWS AMENDMENT ACT (No. 4) 1985 No. 173 of 1985
- SECT 35
Interpretation
35. Section 3 of the Principal Act is amended -
(a) by inserting after the definition of "prescribed non-resident" in
subsection (1) the following definition:
"'prescribed unit trust', in relation to a year of income, means a
trust estate that -
(a) is a corporate unit trust, within the meaning of Division
6B of Part III of the Assessment Act, in relation to the year of income; or
(b) is a public trading trust, within the meaning of Division
6C of Part III of the Assessment Act, in relation to the year of income;";
and
(b) by omitting "corporate unit trust, within the meaning of Division 6B of
Part III of the Assessment Act," from paragraph (b) of the definition of "tax"
in sub-section (1) and substituting "prescribed unit trust".
The
Act No. 173, 1985 amended as indicated in the Tables below.
Act |
Number and year |
Date of Assent |
Date of commencement |
Application, saving or transitional provisions |
173, 1985 |
16 Dec 1985 |
|||
49, 1986 |
24 June 1986 |
Ss. 33 and 36:
Ss. 34, 35 and
37–39: |
— | |
75, 2010 |
28 June 2010 |
Schedule 6 (item 68): 29 June 2010 |
— |
(a) Subsections 2(2) and (3) of theTaxation Laws Amendment Act (No. 2) 1986 provide as follows:
(2) Sections 33 and 36 shall be deemed to have come into operation immediately after the commencement
of section 1 of the
Taxation Laws Amendment Act (No. 4) 1985 .Section 1 of the
Ta xation Laws Amendment Act (No. 4) 1985 commenced on 16 December 1985.
(3) Sections 34, 35, 37, 38 and 39 shall be deemed to have come into operation immediately after the
commencement of the
Veterans' Entitlements Act 1986 .The
Veterans' Entitlements Act 1986 commenced on 22 May 1986.
am. = amended rep. = repealed rs. = repealed and substituted | |
Provision affected | How affected |
S. 2.......................................... | am. No. 49, 1986 |
Ss. 4, 5.................................... | am. No. 49, 1986 |
S. 13........................................ | rep. No. 49, 1986 |
S. 17........................................ | am. No. 49, 1986 |
Ss. 21, 22................................ | am. No. 49, 1986 |
S. 24........................................ | rep. No. 75, 2010 |
0
0
0