Tax and Superannuation Laws Amendment (Norfolk Island Reforms) Act 2015

Tax and Superannuation Laws Amendment (Norfolk Island Reforms) Act 2015

No. 53, 2015

Compilation No. 1

Compilation date: 1 July 2026

Includes amendments: No. 57, 2025

About this compilation

This compilation

This is a compilation of the Tax and Superannuation Laws Amendment (Norfolk Island Reforms) Act 2015 that shows the text of the law as amended and in force on 1 July 2026 (the compilation date).

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au).

Application, saving and transitional provisions

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Editorial changes

For more information about any editorial changes made in this compilation, see the endnotes.

Presentational changes

The Legislation Act 2003 provides for First Parliamentary Counsel to make presentational changes to a compilation. Presentational changes are applied to give a more consistent look and feel to legislation published on the Register, and enable the user to more easily navigate those documents.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. Any modifications affecting the law are accessible on the Register.

Self‑repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

Contents

1 Short title

2 Commencement

3 Schedules

Schedule 1—Income tax (including the Medicare levy)

Income Tax Assessment Act 1936

Income Tax Assessment Act 1997

Income Tax (Transitional Provisions) Act 1997

Schedule 2—Superannuation guarantee

Superannuation Guarantee (Administration) Act 1992

Endnotes

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

An Act to amend the law relating to taxation and superannuation, and for related purposes

1  Short title

  This Act may be cited as the Tax and Superannuation Laws Amendment (Norfolk Island Reforms) Act 2015.

2  Commencement

  This Act commences on 1 July 2016.

3  Schedules

  Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Income tax (including the Medicare levy)

Income Tax Assessment Act 1936

1  Division 1A of Part III

Repeal the Division.

2  Paragraph 202DDB(2)(a)

Omit “or 202EF, or both”.

3  Sub‑subparagraph 202DDB(2)(b)(ii)(A)

Omit “or 202EF, or both”.

4  Section 202EF

Repeal the section.

5  Paragraphs 251S(1)(a) and (b)

Omit “other than a Territory resident (within the meaning of section 24C)”.

6  At the end of paragraph 251T(a)

Add “or”.

7  Paragraph 251T(b)

Repeal the paragraph.

8  Paragraph 251U(1)(d)

Omit “, or was a resident only because the definition of Australia includes the prescribed Territory (within the meaning of section 24B)”.

Income Tax Assessment Act 1997

9  Section 11‑15 (table item headed “foreign aspects of income taxation”)

Omit:

10  Section 109‑60 (table item 1)

Omit “section 24P”, substitute “subsection 102‑25(1) of the Income Tax (Transitional Provisions) Act 1997”.

11  Section 109‑60 (after table item 1)

Insert:

12  Section 112‑97 (table item 2)

Omit “section 24P”, substitute “subsection 102‑25(1) of the Income Tax (Transitional Provisions) Act 1997”.

13  Section 112‑97 (after table item 2)

Insert:

14  Section 118‑1 (note 1)

Omit:

• section 24B (about External Territories);

15  Paragraph 202‑45(b)

Repeal the paragraph.

16  Subsection 960‑505(1) (note 1)

Omit “Note 1”, substitute “Note”.

17  Subsection 960‑505(1) (note 2)

Repeal the note.

Income Tax (Transitional Provisions) Act 1997

18  At the end of Division 102

Add:

102‑25  Transitional capital gains tax provisions for certain Cocos (Keeling) Islands and Norfolk Island assets

 (1) If:

 (a) an entity was a prescribed person (within the meaning of former Division 1A of Part III of the Income Tax Assessment Act 1936) because of residence in the Territory of Cocos (Keeling) Islands on or before 30 June 1991; and

 (b) the entity acquired a CGT asset on or before that day; and

 (c) the asset is not a pre‑CGT asset; and

 (d) had a CGT event happened in relation to the asset immediately before 1 July 1991, and had the Income Tax Assessment Act 1997 been in force at the time of the event, any capital gain or capital loss from the event would have been disregarded because the entity was a prescribed person;

then, for the purposes of Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997:

 (e) the asset is taken to have been acquired by the entity on 30 June 1991; and

 (f) the first element of the asset’s cost base in the hands of the entity (at the end of that day) is its market value at that time.

Note: A prescribed person was a Territory resident, a Territory company or a trustee of a Territory trust, as defined by former sections 24C, 24D and 24E of the Income Tax Assessment Act 1936.

 (2) If:

 (a) an entity was a prescribed person (within the meaning of former Division 1A of Part III of the Income Tax Assessment Act 1936) because of residence in Norfolk Island on or before 30 June 2016; and

 (b) the entity acquired a CGT asset on or before that day; and

 (c) the asset is not a pre‑CGT asset; and

 (d) had a CGT event happened in relation to the asset immediately before 1 July 2016, any capital gain or capital loss from the event would have been disregarded because the entity was a prescribed person;

then, for the purposes of Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997:

 (e) the asset is taken to have been acquired by the entity on 30 June 2016; and

 (f) the first element of the asset’s cost base in the hands of the entity (at the end of that day) is its market value at that time.

 (3) Despite Division 121 of the Income Tax Assessment Act 1997, the entity is not required to keep records of the date of acquisition of an asset in relation to which subsection (1) or (2) of this section applies, or its cost base on 30 June 1991 or 30 June 2016 (as the case requires).

 (4) However, if, as at the date on which a CGT event happens in relation to the asset, the entity has complied with Division 121 of the Income Tax Assessment Act 1997 in relation to the asset, the entity may choose that this section does not apply in relation to the asset.

19  Application

The amendments made by this Part (other than item 18) apply in relation to the 2016‑17 income year and later income years.

Schedule 2—Superannuation guarantee

Superannuation Guarantee (Administration) Act 1992

1  Paragraphs 27(1)(b) and (c)

Repeal the paragraphs, substitute:

 (b) salary or wages paid to an employee who is not a resident of Australia for work done outside Australia (except to the extent that the salary or wages relate to employment covered by a certificate under section 15C);

 (c) salary or wages paid by an employer who is not a resident of Australia to an employee who is a resident of Australia for work done outside Australia;

2  Application and transitional

(1) The amendments made by this Part apply in relation to quarters starting on or after 1 July 2016.

(2) However, for the purpose of making the calculation of an employer’s individual superannuation guarantee shortfall for an employee for a quarter under section 19 of the Superannuation Guarantee (Administration) Act 1992, if:

 (a) some or all of the salary or wages paid by the employer to the employee for the quarter consists of Norfolk Island salary or wages; and

 (b) the quarter occurs in a financial year starting on or after1 July 2016, and ending before 1 July 2026;

the total salary and wages paid by the employer to the employee for the quarter is taken to be reduced by an amount worked out using the formula:

where:

charge percentage is the charge percentage for the employer for the quarter, as specified in subsection 19(2) of the Superannuation Guarantee (Administration) Act 1992.

Norfolk Island charge percentage is:

 (a) if the quarter occurs in the financial year starting on 1 July 2016—1; or

 (b) if the quarter occurs in a later financial year—the number worked out by increasing by 1 the Norfolk Island charge percentage for a quarter that occurred in the financial year preceding that later financial year.

Example: If the quarter occurs in the 2018‑19 financial year, the Norfolk Island charge percentage will be 3, because in the quarters of the 2017‑18 financial year it will have been 2 (having increased by 1 from the 2016‑17 financial year).

(3) In this item:

Norfolk Island salary or wages means salary or wages that, if the amendments made by this Part had not been made, would, because of subparagraph 27(1)(b)(ii) or (c)(ii) of the Superannuation Guarantee (Administration) Act 1992, not have been taken into account for the purpose of making a calculation under section 19 of that Act.

Endnotes

Endnote 1—About the endnotes

The endnotes provide information about this compilation and the compiled law.

The following endnotes are included in every compilation:

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Abbreviation key—Endnote 2

The abbreviation key sets out abbreviations that may be used in the endnotes.

Legislation history and amendment history—Endnotes 3 and 4

Amending laws are annotated in the legislation history and amendment history.

The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.

The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.

Editorial changes

The Legislation Act 2003 authorises First Parliamentary Counsel to make editorial and presentational changes to a compiled law in preparing a compilation of the law for registration. The changes must not change the effect of the law. Editorial changes take effect from the compilation registration date.

If the compilation includes editorial changes, the endnotes include a brief outline of the changes in general terms. Full details of any changes can be obtained from the Office of Parliamentary Counsel.

Misdescribed amendments

A misdescribed amendment is an amendment that does not accurately describe how an amendment is to be made. If, despite the misdescription, the amendment can be given effect as intended, then the misdescribed amendment can be incorporated through an editorial change made under section 15V of the Legislation Act 2003.

If a misdescribed amendment cannot be given effect as intended, the amendment is not incorporated and “(md not incorp)” is added to the amendment history.

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history