Tax Laws Amendment (2011 Measures No. 8) Act 2011

Administered by Department of the Treasury

Legislation au C2011A00136 In force Act

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No. 136, 2011

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

Contents

1 Short title

2 Commencement

3 Schedule(s)

4 Amendment of assessments

Schedule 1—Commissioner’s discretion for primary production concessions

Income Tax Assessment Act 1997

Schedule 2—Clarifying taxing point for Petroleum Resource Rent Tax

Petroleum Resource Rent Tax Assessment Act 1987

Schedule 4—Consequential amendments for taxation of gaseous fuels

Part 1—Excise Act 1901

Part 2—Fuel Tax Act 2006

Tax Laws Amendment (2011 Measures No. 8) Act 2011

No. 136, 2011

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

[Assented to 29 November 2011]

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Tax Laws Amendment (2011 Measures No. 8) Act 2011.

2 Commencement

(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

Commencement information
Column 1	Column 2	Column 3
Provision(s)	Commencement	Date/Details
1. Sections 1 to 4 and anything in this Act not elsewhere covered by this table	The day this Act receives the Royal Assent.	29 November 2011
2. Schedules 1 and 2	The day this Act receives the Royal Assent.	29 November 2011
7. Schedule 4	Immediately after the commencement of Schedule 1 to the Taxation of Alternative Fuels Legislation Amendment Act 2011.	1 December 2011

Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3 Schedule(s)

Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

4 Amendment of assessments

Section 170 of the Income Tax Assessment Act 1936 does not prevent the amendment of an assessment if:

(a) the assessment was made before the commencement of Schedule 1 to this Act; and

(b) the amendment is made for the purpose of giving effect to item 1, 2 or 3 of that Schedule; and

Schedule 1—Commissioner’s discretion for primary production concessions

Income Tax Assessment Act 1997

1 Paragraph 385‑163(3)(a)

Repeal the paragraph.

2 At the end of section 385‑163

Add:

(4) However, in the case of a trust, a disentitling event does not happen if:

(a) either:

(i) the disentitling event is covered by paragraph 3(c); or

(ii) the disentitling event is covered by paragraph 3(d) and a beneficiary leaves Australia permanently, or it appears to the Commissioner that a beneficiary is about to do so; and

(b) the Commissioner makes a determination under subsection (5).

(5) The Commissioner may make a determination for the purpose of subsection (4) if it is fair and reasonable to do so having regard to:

(a) the nature of the *disentitling event to which subsection (3) applies; and

(b) any relevant circumstances relating to the beneficiary mentioned in paragraph (3)(c) or (d); and

(d) any other matters the Commissioner considers relevant.

(6) A determination made under subsection (5) must be made in writing.

(7) The Commissioner must give the trustee of the trust a copy of the determination.

3 Application of amendments

The amendments made by this Schedule apply to assessments for the 2005‑06 income year and later income years.

Schedule 2—Clarifying taxing point for Petroleum Resource Rent Tax

Petroleum Resource Rent Tax Assessment Act 1987

1 Section 2 (definition of marketable petroleum commodity)

Repeal the definition, substitute:

marketable petroleum commodity has the meaning given by section 2E.

2 After section 2D

Insert:

2E Marketable petroleum commodity

(1) A marketable petroleum commodity is a product listed in subsection (2) that:

(a) is produced from petroleum for the purpose of:

(i) sale; or

(ii) use as a feedstock for conversion to another product (whether a product listed in subsection (2) or not); or

(iii) direct consumption as energy; and

(b) is in its final form for that purpose.

(2) The products are as follows:

(a) stabilised crude oil;

(b) sales gas;

(d) liquefied petroleum gas;

(e) ethane;

(f) any other product specified in regulations made for the purposes of this paragraph.

(3) However, a product cannot be a marketable petroleum commodity if it has been produced wholly or partly from a product that was a marketable petroleum commodity.

3 Application of amendments

The amendments made by this Schedule apply in relation to the year of tax commencing on 1 July 1990 and each later year of tax.

Schedule 4—Consequential amendments for taxation of gaseous fuels

Part 1—Excise Act 1901

1 Section 77HA

Before “Compressed natural gas”, insert “(1)”.

2 At the end of section 77HA

Add:

; (d) the gas is exempt from excise duty under subsection (2).

(2) Compressed natural gas is exempt from excise duty if:

(a) the gas was compressed at residential premises (within the meaning of the A New Tax System (Goods and Services Tax) Act 1999); and

(b) the rate at which natural gas can be compressed at those premises is not more than:

(i) the amount of compressed natural gas per hour prescribed by the regulations; or

(ii) if no amount is prescribed—10 kilograms of compressed natural gas per hour; and

(c) the gas is not sold or otherwise supplied in the course of carrying on an enterprise (within the meaning of the A New Tax System (Goods and Services Tax) Act 1999).

3 Subsection 77L(3)

Repeal the subsection, substitute:

Contents of notice

(3) A notice given under this section must comply with any requirements prescribed by the regulations.

4 Transitional provision—regulations

Regulations that are in force under paragraph 77L(3)(b) of the Excise Act 1901 immediately before this item commences are taken, after that time, to have been made for the purposes of subsection 77L(3) of that Act (as inserted by this Part).

Part 2—Fuel Tax Act 2006

5 Subparagraph 41‑10(3)(d)(i)

Omit “and is for use in *carrying on an *enterprise”.

6 Subparagraph 41‑10(3)(d)(ii)

Omit “carrying on an enterprise”, substitute “*carrying on an *enterprise”.

7 Application of amendments

The amendments to paragraph 41‑10(3)(d) of the Fuel Tax Act 2006 made by this Part apply to taxable fuel acquired, manufactured or imported on or after the day this Part commences.

[Minister’s second reading speech made in—

House of Representatives on 13 October 2011

Senate on 22 November 2011]

(219/11)

Overview

The Tax Laws Amendment (2011 Measures No. 8) Act 2011, enacted by the Parliament of Australia, was introduced to address various issues in the taxation laws. This Act, assented to on 29 November 2011, primarily seeks to amend existing legislation concerning taxation, thereby ensuring that the tax system operates effectively and equitably. It provides for amendments to the Income Tax Assessment Act 1997, the Petroleum Resource Rent Tax Assessment Act 1987, the Excise Act 1901, and the Fuel Tax Act 2006. The overarching policy objective of this Act is to clarify and refine certain aspects of the tax laws, including the taxing point for petroleum resource rent tax, the discretion of the Commissioner regarding primary production concessions, and the taxation of gaseous fuels. These amendments aim to enhance the precision and applicability of the tax system, ensuring it meets the current economic and regulatory environment.

Scope and Application

The Tax Laws Amendment (2011 Measures No. 8) Act 2011 amends various taxation laws in Australia to refine and clarify the application of certain tax provisions. It applies to entities and individuals involved in primary production, petroleum resource rent taxation, and the taxation of gaseous fuels. The Act's amendments affect the Income Tax Assessment Act 1997, the Petroleum Resource Rent Tax Assessment Act 1987, the Excise Act 1901, and the Fuel Tax Act 2006. The amendments pertain to specific fiscal years, with some provisions applying from the 2005-06 income year onwards and others from 1 July 1990. The Act allows for the amendment of assessments made before its commencement, within two years of the Act's commencement, for certain specified purposes. The Act's application is comprehensive across the Commonwealth of Australia, impacting various sectors and transactions within the defined scope of the amended Acts.

Key Provisions

The Tax Laws Amendment (2011 Measures No. 8) Act 2011 amends various taxation laws, specifically targeting primary production concessions, petroleum resource rent tax, and the taxation of gaseous fuels. Section 1 of the Act provides that it may be cited as the Tax Laws Amendment (2011 Measures No. 8) Act 2011. The commencement details are outlined in Section 2, with key provisions and schedules starting on the day the Act receives Royal Assent on 29 November 2011, and others following specific dates or the commencement of related acts. Section 3 details the amendments to various Acts specified in the schedules. The Act also includes provisions for the amendment of assessments, particularly concerning primary production concessions and petroleum resource rent tax, within a specified timeframe. The obligations imposed by the Act primarily revolve around the application of the new provisions to assessments and taxation years specified in the schedules. For example, the amendments to the Income Tax Assessment Act 1997, as outlined in Schedule 1, relate to the Commissioner’s discretion for primary production concessions. These amendments clarify the conditions under which a disentitling event does not occur for certain beneficiaries of a trust and provide the Commissioner with the discretion to make determinations based on fairness and reasonableness. Schedule 2 clarifies the definition of marketable petroleum commodities for the purposes of the Petroleum Resource Rent Tax Assessment Act 1987, ensuring that only certain products qualify as marketable commodities. Schedule 4 addresses consequential amendments related to the taxation of gaseous fuels, particularly compressed natural gas, under the Excise Act 1901 and the Fuel Tax Act 2006. Breaches of the provisions outlined in the Act can lead to various civil or criminal consequences. While the Act itself does not specify penalties, the underlying Acts it amends (such as the Income Tax Assessment Act 1997 and the Excise Act 1901) include provisions for penalties. For instance, non-compliance with tax obligations can result in penalties under the Income Tax Assessment Act 1997, which may include fines and interest on unpaid taxes. Similarly, breaches related to excise duties under the Excise Act 1901 can result in penalties, including fines and potential criminal charges for serious or repeated offences.

Area of Law: Taxation Law
Instrument: Act
Concepts: Commencement Provisions; Repeal & Amendment; Amendment of assessments; Compliance Obligations

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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