Taxation Laws Amendment Act 1994

Act No. 56 of 1994 as amended

This compilation was prepared on 23 September 2010
taking into account amendments up to Act No. 75 of 2010

The text of any of those amendments not in force
on that date is appended in the Notes section

The operation of amendments that have been incorporated may be
affected by application provisions that are set out in the Notes section

Prepared by the Office of Legislative Drafting and Publishing,
Attorney-General’s Department, Canberra

TABLE OF PROVISIONS

PART 1 - PRELIMINARY

Section

1. Short title [see Note 1]

2. Commencement [see Note 1]

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

Division 1 - Principal Act

3. Principal Act

Division 2 - Employees employed in foreign locations

4. Object of Division

5. Exempt benefits - certain travel to obtain medical treatment

6. Application of amendment

Division 3 - Car parking benefits

7. Object of Division

8. Interpretation

9. Application of amendments

Division 4 - Non-government schools

10. Object of Division

11. Rebate for certain non-profit employers etc.

12. Application of amendment

PART 3 - AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

Division 1 - Principal Act

13. Principal Act

Division 2 - Tax-exempt infrastructure borrowings

14. Object of Division

15. General

16. Direct infrastructure borrowing - requirement relating to spending

of borrowed money

17. Direct infrastructure borrowing - requirement relating to use of

facilities on which borrowed money is to be spent

18. Application of amendments

Division 3 - Pensions and annuity rebates

19. Object of Division

20. Interpretation

21. Components in respect of superannuation pensions

22. Components in respect of rebatable ETP annuities

23. Application of amendments

Division 4 - Exemptions for pensions and allowances

Subdivision A - Bereavement payments

24. Objects of Subdivision

25. Interpretation

26. Carer pension

27. Job search allowance

28. Newstart allowance

29. Sickness allowance

30. Special benefit

31. Insertion of new sections:

24ABZC. Exempt bereavement payment calculator AA

24ABZD. Exempt bereavement payment calculator AB

32. Application of amendments

Subdivision B - Mature age allowance and mature age partner

allowance

33. Objects of Subdivision

34. Interpretation

35. Index of payments covered by Subdivision

36. Interpretation - supplementary amounts

37. Insertion of new sections:

24ABMA. Mature age allowance

24ABMB. Mature age partner allowance

38. Application of amendments

Division 5 - Payment of instalments by companies and certain

trustees

39. Objects of Division

40. Deemed assessment

41. Interpretation

42. Liability to pay instalments

43. Insertion of new Subdivision:

Subdivision BA - Instalment taxpayer groups

221AZMA. Medium taxpayer in large group treated as large

taxpayer

221AZMB. Instalment taxpayer groups

221AZMC. When one instalment taxpayer controls another

44. Penalty applies if estimate is too low

45. Due date for payment of tax

46. Application of amendments

Division 6 - Penalties for over-franking dividends

47. Object of Division

48. Penalty for over-franking

49. Application of amendments

Division 7 - Heritage conservation rebate

50. Object of Division

51. Insertion of new Subdivision:

Subdivision AAD - Heritage conservation rebate

159U. Object

159UA. Outline of Subdivision

159UB. Definitions

159UC. Expenditure does not include expenditure on plant or

articles

159UD. Minister must set maximum approval limit

159UE. Minister may set closing date for applications

159UF. Provisional certificate criteria and procedures

159UG. Application for provisional certificate

159UH. Form etc. of application

159UI. Minister may request further information

159UJ. Issue of provisional certificate

159UK. Contents of provisional certificate

159UL. When provisional certificate in force

159UM. Application for final certificate

159UN. Person dying - application for final certificate

159UO. Final certificate

159UP. Transactions between persons not at arm's length

159UQ. Heritage conservation rebate

159UR. Heritage conservation rebate - partnerships

159US. Heritage conservation rebate - trust estates

159UT. Heritage conservation rebate - corporate unit trusts and

public trading trusts

159UU. No deduction allowed in respect of work covered by a

certificate

159UV. Review of final certificate decision

159UW. Provision of information to recognised heritage bodies

159UX. Delegation by Minister

159UY. Disallowable instruments

52. Qualifying expenditure

53. Qualifying expenditure

54. Reduction of amounts for purposes of reduced cost base

Division 8 - Savings banks

55. Object of Division

56. Exemptions

57. Interpretation

58. Interpretation

59. Interpretation

60. Liability to withholding tax

61. Other interpretative provisions

62. Certain exempting provisions ineffective

63. Application of amendments

64. Transitional

Division 9 - Exclusion of low income rebate from provisional tax

arrangements

65. Object of Division

66. Uplifted provisional tax amendment

67. Provisional tax on estimated income

68. Application of amendments

Division 10 - Life assurance companies and registered organizations

69. Object of Division

70. Deductions to be allowable for expenditure incurred in

gaining superannuation premiums

71. Deductions to be allowable for expenditure incurred in

gaining the investment component of certain premiums

72. Repeal of sections 111A and 111AA

73. Insertion of new sections:

111AB. Reinsurance recoveries and refunds of premiums not

assessable income

111AC. Deductions to be allowable for expenditure incurred in

obtaining superannuation premiums

111AD. Deductions to be allowable for expenditure incurred in

obtaining the investment component of certain premiums

74. Reduction in deductions that are not exclusively related to

producing assessable income

75. Deductions not allowable for expenditure incurred in gaining

certain premium income

76. Repeal of section and substitution of new section:

112. Deductions not allowable for expenditure incurred in

gaining certain premium income

77. Insertion of new section:

112BA. Deductions not allowable for benefits or reinsurance

premiums

78. Expenses of general management relating to producing assessable

income

79. Insertion of new section:

113A. Expenses of general management incurred in obtaining

certain premiums

80. Apportionment of current year deductions between classes

81. Insertion of new section:

116GE. Reinsurance recoveries and refunds of premiums not

assessable income

82. Deductions allowable from assessable income of registered

organizations

83. Deductions to be allowable for expenditure incurred in

gaining superannuation premiums

84. Repeal of sections 116HA and 116HAA

85. Insertion of new sections:

116HAB. Deductions to be allowable for expenditure incurred in

obtaining superannuation premiums

116HAC. Deductions to be allowable for expenditure incurred in

obtaining the investment component of certain premiums

116HAD. Deductions not allowable for benefits or reinsurance

premiums

86. Period allowed for furnishing amended returns without incurring

penalty

PART 4 - AMENDMENT OF THE SUPERANNUATION GUARANTEE (ADMINISTRATION)

ACT 1992

Division 1 - Principal Act

88. Principal Act

Division 2 - Liability of Commonwealth authorities

89. Object of Division

90. Repeal of section and substitution of new section:

5. Application of Act to Commonwealth

91. Insertion of new section:

5A. Application of Act to Commonwealth authorities

Division 3 - Ordinary time earnings

92. Object of Division

93. Interpretation - general

Division 4 - Industrial award

94. Object of Division

95. Interpretation: notional earnings base where employer contributing

to superannuation fund for benefit of employee immediately before

21 August 1991

96. Insertion of new section:

13A. Interpretation: notional earnings base where employer

contributing to Seafarers' Retirement Fund

97. Application of amendments

Division 5 - Contractors

98. Object of Division

99. Interpretation - salary or wages

Division 6 - Payments to estate of a dead employee

100. Object of Division

101. Reduction of charge percentage where contribution made to fund

other than defined benefit superannuation scheme

Division 7 - Contribution periods

102. Object of Division

103. Reduction of charge percentage if contribution made to

fund other than defined benefit superannuation scheme

Division 8 - Reduction of notional earnings base and ordinary time

earnings

104. Object of Division

105. Reduction of charge percentage if contribution made to

fund other than defined benefit superannuation scheme

Division 9 - Flat dollar contributions and part-time employees

106. Object of Division

107. Certain contributions taken to be in accordance with

industrial award that specifies notional earnings base

Division 10 - Retirement of employee due to permanent incapacity or

invalidity

108. Object of Division

109. Repeal of section and substitution of new section:

66. Payment to employee retired due to permanent incapacity

or invalidity

PART 5 - AMENDMENT OF THE TAXATION LAWS AMENDMENT (SUPERANNUATION)

ACT 1989

110. Principal Act

111. Object of Part

112. Amendment of section 17 of the Principal Act

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994 - LONG TITLE

An Act to amend the law relating to taxation

PART 1 - PRELIMINARY

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 1

Short title [see Note 1]

1. This Act may be cited as the Taxation Laws Amendment Act 1994.

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 2

Commencement [see Note 1]

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

receives the Royal Assent.

(2) Subdivision A of Division 4 of Part 3 is taken to have commenced on 1

July 1993.

(3) Subdivision B of Division 4 of Part 3 commences, or is taken to have

commenced, on 20 March 1994.

(4) Division 8 of Part 3 commences on 1 July 1994.

(5) Subsection 70(1) is taken to have commenced immediately after the

commencement of section 16 of the Taxation Laws Amendment (Superannuation)

Act 1989.

(6) Subsection 71(1) is taken to have commenced immediately after the

commencement of section 11 of the Taxation Laws Amendment Act (No. 5) 1989.

(7) Subsection 75(1) is taken to have commenced immediately after section

12 of the Taxation Laws Amendment Act (No. 5) 1989.

(8) Subsection 83(1) is taken to have commenced immediately after the

commencement of section 24 of the Taxation Laws Amendment (Superannuation)

Act 1989.

(9) Subsections 70(2), 71(2) and 83(2) are taken to have commenced

immediately after the commencement of the Taxation Laws Amendment (Foreign

Income) Act 1990.

(10) Section 112 is taken to have commenced immediately after the

commencement of section 17 of the Taxation Laws Amendment (Superannuation)

Act 1989.

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

Division 1 - Principal Act

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 3

Principal Act

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

Act 1986.*1*

Fringe Benefits Tax Assessment Act 1986

*1* No. 39, 1986, as amended. For previous amendments, see Nos. 48 and 112,

1986; Nos. 23 and 145, 1987; No. 139, 1987 (as amended by Nos. 11 and 78,

1988); Nos. 6, 78, 95, 97 and 153, 1988; Nos. 2, 11, 97 and 107, 1989; Nos.

37, 58, 60 and 135, 1990; Nos. 48, 100 and 216, 1991; Nos. 35, 92, 101, 118,

191, 210, 223 and 237, 1992; and Nos. 17 and 18, 1993.

Division 2 - Employees employed in foreign locations

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 4

Object of Division

4. The object of this Division is to remove the requirement that a foreign

location must be prescribed by regulations before an exemption from fringe

benefits tax is allowed in respect of a benefit paid to employees working at

that location to enable them to travel from their workplace to receive

medical treatment.

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 5

Exempt benefits-certain travel to obtain medical treatment

5. Section 58L of the Principal Act is amended by omitting from

subparagraphs (1)(d)(i), (ii) and (iii) "prescribed".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 6

Application of amendment

6. The amendment made by this Division:

(a) applies in respect of medical treatment provided on or after the day

on which this Division commences; and

(b) is taken also to have applied in respect of medical treatment provided

on or after 1 July 1986 and before the day referred to in paragraph (a) if:

(i) the Minister for Foreign Affairs certifies in writing that

the relevant foreign country is a developing country; or

(ii) that Minister certifies in writing that the relevant

foreign country ceased to be a developing country at a time stated in the

certificate, and the treatment was provided, or began to be provided, before

that time.

Division 3 - Car parking benefits

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 7

Object of Division

7. The objects of this Division are:

(a) to ensure that a car parking benefit is valued only by reference to

fees charged by commercial parking station operators during daylight hours;

and

(b) to exclude kerbside parking meters from being regarded as a commercial

parking station.

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 8

Interpretation

8. Section 136 of the Principal Act is amended by omitting from subsection

(1) the definitions of "all-day parking" and "commercial parking station"

and substituting respectively the following definitions:

"'all-day parking', in relation to a particular day, means parking of a

single car for a continuous period of 6 hours or more during a daylight

period on that day;

'commercial parking station', in relation to a particular day, means a

permanent commercial car parking facility where any or all of the car parking

spaces are available in the ordinary course of business to members of the

public for all-day parking on that day on payment of a fee, but does not

include a parking facility on a public street, road, lane, thoroughfare or

footpath paid for by inserting money in a meter or by obtaining a voucher;".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 9

Application of amendments

9. The amendments made by this Division:

(a) in so far as they relate to fringe benefits tax, apply to assessments of

the fringe benefits taxable amount of the year of tax beginning on 1 April

1994 and of all later years of tax; and

(b) in so far as they relate to income tax, apply in relation to expenditure

incurred by a taxpayer on or after 1 July 1994.

Division 4 - Non-government schools

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 10

Object of Division

10. The object of this Division is to allow certain non-government schools

to receive a rebate against their liability to fringe benefits tax.

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 11

Rebate for certain non-profit employers etc.

11. Section 65J of the Principal Act is amended by inserting after paragraph

(1)(b) the following paragraph:

"(ba) a school (including a pre-school but not including a tertiary

institution) that:

(i) although established by or under a law of the Commonwealth,

a State or a Territory, is not conducted for or on behalf of the Commonwealth,

a State or a Territory; and

(ii) is not conducted for the purpose of profit or gain to the

persons or body of persons conducting it;".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 12

Application of amendment

12. The amendment made by this Division applies in relation to fringe

benefits tax (including instalments) for the year of tax beginning on 1 April

1994 and for all later years of tax.

PART 3 - AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

Division 1 - Principal Act

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 13

Principal Act

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

1936.*2*

Income Tax Assessment Act 1936

*2* No. 27, 1936, as amended. For previous amendments, see No. 88, 1936; No.

5, 1937; No. 46, 1938; No. 30, 1939; Nos. 17 and 65, 1940; Nos. 58 and 69,

1941; Nos. 22 and 50, 1942; No. 10, 1943; Nos. 3 and 28, 1944; Nos. 4 and 37,

1945; No. 6, 1946; Nos. 11 and 63, 1947; No. 44, 1948; No. 66, 1949; No. 48,

1950; No. 44, 1951; Nos. 4, 28 and 90, 1952; Nos. 1, 28, 45 and 81, 1953; No.

43, 1954; Nos. 18 and 62, 1955; Nos. 25, 30 and 101, 1956; Nos. 39 and 65,

1957; No. 55, 1958; Nos. 12, 70 and 85, 1959; Nos. 17, 18, 58 and 108, 1960;

Nos. 17, 27 and 94, 1961; Nos. 39 and 98, 1962; Nos. 34 and 69, 1963; Nos. 46,

68, 110 and 115, 1964; Nos. 33, 103 and 143, 1965; Nos. 50 and 83, 1966; Nos.

19, 38, 76 and 85, 1967; Nos. 4, 70, 87 and 148, 1968; Nos. 18, 93 and 101,

1969; No. 87, 1970; Nos. 6, 54 and 93, 1971; Nos. 5, 46, 47, 65 and 85, 1972;

Nos. 51, 52, 53, 164 and 165, 1973; No. 216, 1973 (as amended by No. 20,

1974); Nos. 26 and 126, 1974; Nos. 80 and 117, 1975; Nos. 50, 53, 56, 98, 143,

165 and 205, 1976; Nos. 57, 126 and 127, 1977; Nos. 36, 57, 87, 90, 123, 171

and 172, 1978; Nos. 12, 19, 27, 43, 62, 146, 147 and 149, 1979; Nos. 19, 24,

57, 58, 124, 133, 134 and 159, 1980; Nos. 61, 92, 108, 109, 110, 111, 154 and

175, 1981; Nos. 29, 38, 39, 76, 80, 106 and 123, 1982; Nos. 14, 25, 39, 49,

51, 54 and 103, 1983; Nos. 14, 42, 47, 63, 76, 115, 124, 165 and 174, 1984;

No. 123, 1984 (as amended by No. 65, 1985); Nos. 47, 49, 104, 123, 168 and

174, 1985; No. 173, 1985 (as amended by No. 49, 1986); Nos. 41, 46, 48, 51,

109, 112 and 154, 1986; No. 49, 1986 (as amended by No. 141, 1987); No. 52,

1986 (as amended by No. 141, 1987); No. 90, 1986 (as amended by No. 141,

1987); Nos. 23, 58, 61, 120, 145 and 163, 1987; No. 62, 1987 (as amended by

No. 108, 1987); No. 108, 1987 (as amended by No. 138, 1987); No. 138, 1987 (as

amended by No. 11, 1988); No. 139, 1987 (as amended by Nos. 11 and 78, 1988);

Nos. 8, 11, 59, 75, 78, 80, 87, 95, 97, 127 and 153, 1988; Nos. 2, 11, 56, 70,

73, 105, 107, 129, 163 and 167, 1989; No. 97, 1989 (as amended by No. 105,

1989); Nos. 20, 35, 45, 57, 58, 60, 61, 87, 119 and 135, 1990; Nos. 4, 5, 6,

48, 55, 100, 203, 208 and 216, 1991; Nos. 3, 35, 69, 70, 80, 81, 92, 98, 101,

118, 138, 167, 190, 191, 208, 223, 224, 227, 237 and 238, 1992; and Nos. 7,

17, 18, 27 and 32, 1993.

Division 2 - Tax-exempt infrastructure borrowings

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 14

Object of Division

14. The objects of this Division are:

(a) to allow tax-exempt infrastructure borrowings made after 17 August 1993

to be used to finance interest on direct infrastructure borrowings falling due

during the construction of the relevant infrastructure facility; and

(b) to extend the tax exemption to borrowings raised for the construction of

infrastructure facilities on certain leases of Crown land granted under

commercial contracts.

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 15

General

15. Section 159GZZZU of the Principal Act is amended by omitting the

definition of "Crown lease" and substituting the following definition:

"'Crown lease' means a lease of land granted by:

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

(b) an authority of the Commonwealth, a State, or a Territory, if, assuming

that the authority derived income at the time when the lease is granted, that

income would be exempt from tax because of a relevant exempting provision

(within the meaning of section 160K);".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 16

Direct infrastructure borrowing-requirement relating to spending of

borrowed money

16. Section 159GZZZZA of the Principal Act is amended:

(a) by adding at the end of subsection (1) the following word and

paragraph:

"; or (c) subject to subsection (2A), the payment of interest, or of amounts

in the nature of interest, on a direct infrastructure borrowing.";

(b) by inserting after subsection (2) the following subsection:

"(2A) Spending money on the payment of interest, or of amounts in the nature

of interest, only qualifies under subsection (1):

(a) to the extent that the interest or those amounts relate to that part of

the period of the borrowing that occurs during the period (the 'construction

period') in which any of the facilities referred to in paragraph (1)(a), or

any of the facilities referred to in paragraph (1)(b) that are being

constructed, are under construction; and

(b) if the payment is made during the construction period.".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 17

Direct infrastructure borrowing-requirement relating to use of

facilities on which borrowed money is to be spent

17. Section 159GZZZZB of the Principal Act is amended by omitting subsection

(2) and substituting the following subsection:

"(2) For the purposes of paragraph (1)(a), if the borrower intends that any

of the facilities concerned will be a fixture on land that is the subject of a

Crown lease and:

(a) if the Crown lease is a lease of land granted under a statutory law of

the Commonwealth, of a State or of a Territory-it can reasonably be expected,

when the borrowing takes place, that the Crown lease will run, or (because of

law, custom or otherwise) be extended or renewed to run, for at least the 25

year assessable use period; or

(b) in any other case-at the time (the 'relevant time') when the first of

the facilities begins to be constructed:

(i) if the term of the lease will not end before the last day of

the 25 year assessable use period-both the lessor and the lessee intend that

the lessee will continue to hold the lease throughout the whole of that period

on the same terms and conditions as those on which the lease is held at the

relevant time; or

(ii) if the term of the lease will end before the last day of

the 25 year assessable use period:

(A) the lessee has an option to renew the lease on the terms

and conditions referred to in subparagraph (i) for a period that will not end,

or has successive options to renew the lease on those terms and conditions for

periods the last of which will not end, before the last day of the 25 year

assessable use period; and

(B) both the lessor and the lessee intend that the lessee will

continue to hold the lease throughout the whole of that period on the same

terms and conditions as those on which the lease is held at the relevant

time;

then the borrower is taken to intend to own the facility concerned.".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 18

Application of amendments

18. (1) The amendments made by sections 15 and 17 apply to borrowings that

took place after 23 June 1993.

(2) The amendment made by section 16 applies to borrowings that took place

after 17 August 1993.

Division 3 - Pensions and annuity rebates

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 19

Object of Division

19. The object of this Division is to extend the rebate that applies to

superannuation pensions and roll-over annuities paid from a taxed source so

that it applies to:

(a) superannuation pensions and roll-over annuities bought by rolling over

an eligible termination payment representing the commutation of a deferred

annuity; and

(b) superannuation pensions and roll-over annuities bought by rolling over

an eligible termination payment representing the commutation of a pension from

an untaxed superannuation fund.

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 20

Interpretation

20. Section 159SJ of the Principal Act is amended by adding at the end of

the definition of "commutation type ETP" in subsection (1) "but does not

include an ETP paid on the commutation of a deferred annuity as defined by

subsection 27A(1)".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 21

Components in respect of superannuation pensions

21. Section 159SN of the Principal Act is amended by omitting from paragraph

(b) "in respect of a particular non-commutation type ETP".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 22

Components in respect of rebatable ETP annuities

22. Section 159SV of the Principal Act is amended by omitting from paragraph

(b) "in respect of a particular non-commutation type ETP".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 23

Application of amendments

23. The amendments made by this Division apply to pensions and annuities

that began to be paid on or after 1 July 1988.

Division 4 - Exemptions for pensions and allowances

Subdivision A - Bereavement payments

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 24

Objects of Subdivision

24. This Subdivision amends the income tax law to take account of recent

changes to the bereavement payments available under the social security law.

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 25

Interpretation

25. Section 24A of the Principal Act is amended:

(a) by inserting after subparagraph (a)(vi) of the definition of

"bereavement Subdivision" the following subparagraphs:

"(via) Subdivision AA of Division 9 of Part 2.11;

(vib) Subdivision AA of Division 9 of Part 2.12;

(vic) Subdivision AA of Division 9 of Part 2.14;

(vid) Subdivision AA of Division 9 of Part 2.15;";

(b) by inserting ", 589A(1)(f), 660LA(1)(f), 728PA(1)(f), 768A(1)(f)" after

"501(1)(e)" in the definition of "exclusion provision".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 26

Carer pension

26. Section 24ABF of the Principal Act is amended:

(a) by omitting subsection (2) and substituting the following subsection:

"(2) Subsection (1) has effect subject to:

(a) subsection (4) (which deals with taxpayers who derive bereavement lump

sum payments under section 239 of the Social Security Act 1991); and

(b) subsection (4A) (which deals with taxpayers who derive bereavement lump

sum payments under section 236A of the Social Security Act 1991).";

(b) by inserting after subsection (4) the following subsection:

"(4A) If a taxpayer derives a payment under section 236A of the Social

Security Act 1991:

(a) so much of the sum of that payment and other payments under the Social

Security Act 1991 derived by the taxpayer on pension paydays that occurred

during the bereavement lump sum period as does not exceed the tax-free amount

calculated using the exempt bereavement payment calculator AA in section

24ABZC is exempt; and

(b) the balance of the sum is not exempt.".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 27

Job search allowance

27. Section 24ABL of the Principal Act is amended by adding at the end the

following subsections:

"(2) Payments under section 589B, 592C or 592D of the Social Security Act

1991 (which deal with bereavement payments) are exempt.

"(3) If a taxpayer derives a payment under section 589C of the Social

Security Act 1991:

(a) so much of the sum of that payment and other payments under the Social

Security Act 1991 derived by the taxpayer during the bereavement lump sum

period as does not exceed the tax-free amount calculated using the exempt

bereavement payment calculator AB in section 24ABZD is exempt; and

(b) the balance of the sum is not exempt.

"(4) If:

(a) a taxpayer's partner died; and

(b) the taxpayer would have been qualified for payments under a bereavement

Subdivision but for an exclusion provision (taxpayer's pension or allowance

increased on partner's death to such an extent that no bereavement payments);

and

bereavement period;

then those payments are not treated under subsection (1) but as follows:

(d) the supplementary amounts are exempt;

(e) so much of the balance as exceeds what would have been the balance

(payments less supplementary amounts) if the partner had not died is exempt;

(f) the rest of the balance is not exempt.".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 28

Newstart allowance

28. Section 24ABM of the Principal Act is amended by adding at the end the

following subsections:

"(2) Payments under section 660LB, 660R or 660S of the Social Security Act

1991 (which deal with bereavement payments) are exempt.

"(3) If a taxpayer derives a payment under section 660LC of the Social

Security Act 1991:

(a) so much of the sum of that payment and other payments under the Social

Security Act 1991 derived by the taxpayer during the bereavement lump sum

period as does not exceed the tax-free amount calculated using the exempt

bereavement payment calculator AB in section 24ABZD is exempt; and

(b) the balance of the sum is not exempt.

"(4) If:

(a) a taxpayer's partner died; and

(b) the taxpayer would have been qualified for payments under a bereavement

Subdivision but for an exclusion provision (taxpayer's pension or allowance

increased on partner's death to such an extent that no bereavement payments);

and

bereavement period;

then those payments are not treated under subsection (1) but as follows:

(d) the supplementary amounts are exempt;

(e) so much of the balance as exceeds what would have been the balance

(payments less supplementary amounts) if the partner had not died is exempt;

(f) the rest of the balance is not exempt.".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 29

Sickness allowance

29. Section 24ABO of the Principal Act is amended by omitting subsection (2)

and substituting the following subsections:

"(2) Payments under section 728PB, 728X or 728Y of the Social Security Act

1991 (which deal with bereavement payments) are exempt.

"(3) If a taxpayer derives a payment under section 728PC of the Social

Security Act 1991:

(a) so much of the sum of that payment and other payments under the Social

Security Act 1991 derived by the taxpayer during the bereavement lump sum

period as does not exceed the tax-free amount calculated using the exempt

bereavement payment calculator AB in section 24ABZD is exempt; and

(b) the balance of the sum is not exempt.

"(4) If:

(a) a taxpayer's partner died; and

(b) the taxpayer would have been qualified for payments under a bereavement

Subdivision but for an exclusion provision (taxpayer's pension or allowance

increased on partner's death to such an extent that no bereavement payments);

and

bereavement period;

then those payments are not treated under subsection (1) but as follows:

(d) the supplementary amounts are exempt;

(e) so much of the balance as exceeds what would have been the balance

(payments less supplementary amounts) if the partner had not died is exempt;

(f) the rest of the balance is not exempt.".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 30

Special benefit

30. Section 24ABP of the Principal Act is amended by adding at the end the

following subsections:

"(2) Payments under section 768B, 771C or 771D of the Social Security Act

1991 (which deal with bereavement payments) are exempt.

"(3) If a taxpayer derives a payment under section 768C of the Social

Security Act 1991:

(a) so much of the sum of that payment and other payments under the Social

Security Act 1991 derived by the taxpayer on pension paydays that occurred

during the bereavement lump sum period as does not exceed the tax-free amount

calculated using the exempt bereavement payment calculator AB in section

24ABZD is exempt; and

(b) the balance of the sum is not exempt.

"(4) If:

(a) a taxpayer's partner died; and

(b) the taxpayer would have been qualified for payments under a bereavement

Subdivision but for an exclusion provision (taxpayer's pension or allowance

increased on partner's death to such an extent that no bereavement payments);

and

period;

then those payments are not treated under subsection (1) but as follows:

(d) the supplementary amounts are exempt;

(e) so much of the balance as exceeds what would have been the balance

(payments less supplementary amounts) if the partner had not died is exempt;

(f) the rest of the balance is not exempt.".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 31

Insertion of new sections

31. After section 24ABZB of the Principal Act the following sections are

inserted in Subdivision B of Division 1AA of Part III:

Exempt bereavement payment calculator AA

"24ABZC. The exempt bereavement payment calculator AA is as follows:

EXEMPT BEREAVEMENT PAYMENT CALCULATOR AA

This is how to work out the tax-free amount:

Method statement

Step 1: Work out the amount of payments under the Social Security Act 1991

that would have been derived by the taxpayer during the bereavement lump sum

period and that would have been exempt if:

(a) the severely handicapped person had not died; and

(b) the severely handicapped person had been under pension age;

the result is called the notional exempt amount for the taxpayer.

Step 2: Work out the amount of payments under the Social Security Act 1991

that would have been derived by the severely handicapped person during the

bereavement lump sum period if the severely handicapped person had not died:

the result is called the notional amount for the caree.

Step 3: Add up the notional exempt amount for the taxpayer and the notional

amount for the caree: the result is the tax-free amount.

Exempt bereavement payment calculator AB

"24ABZD. The exempt bereavement payment calculator AB is as follows:

EXEMPT BEREAVEMENT PAYMENT CALCULATOR AB

This is how to work out the tax-free amount:

Method statement

Step 1: Work out the amount of payments under the Social Security Act 1991

that would have been derived by the taxpayer during the bereavement lump sum

period and that would have been exempt if:

(a) the partner had not died; and

(b) the partner had been under pension age; and

separated couple or a respite care couple-they were not such a couple;

the result is called the notional exempt amount for the taxpayer.

Step 2: Work out the amount of payments (if any) under the Social Security Act

1991 that would have been derived by the partner during the bereavement lump

sum period if the partner had not died; the result is called the notional

amount for the partner.

Step 3: Add up the notional exempt amount for the taxpayer and the notional

partner amount: the result is the tax-free amount.".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 32

Application of amendments

32. The amendments made by this Subdivision apply to payments received under

the Social Security Act 1991 on or after 1 July 1993.

Subdivision B - Mature age allowance and mature age partner allowance

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 33

Objects of Subdivision

33. This Subdivision amends the income tax law to take account of mature age

allowance and mature age partner allowance payments becoming available under

the social security law.

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 34

Interpretation

34. Section 24A of the Principal Act is amended:

(a) by inserting after subparagraph (a)(vib) of the definition of

"bereavement Subdivision" the following subparagraph:

"(viba) Subdivision A of Division 11 of Part 2.12A;";

(b) by inserting ", 66OXKA(1)(e)" after "660LA(1)(f)" in the definition of

"exclusion provision".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 35

Index of payments covered by Subdivision

35. Section 24AB of the Principal Act is amended by inserting in the Table

after the entry for job search allowance the following entry:

"Mature age allowance 24ABMA

Mature age partner allowance 24ABMB".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 36

Interpretation-supplementary amounts

36. Section 24ABA of the Principal Act is amended:

(a) by omitting from the Table in subsection (1) "Special needs widow B

pension" and substituting:

"Special needs widow B pension

Mature age allowance

Mature age partner allowance".

(b) by adding at the end the following subsection:

"(4) For the purposes of this section, a payment under section 660XKH of the

Social Security Act 1991 is taken to be a payment of a mature age partner

allowance.".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 37

Insertion of new sections

37. After section 24ABM of the Principal Act the following sections are

inserted:

Mature age allowance

"24ABMA.(1) The treatment of payments of mature age allowance under Part

2.12A of the Social Security Act 1991 is as follows:

(a) the supplementary amount is exempt;

(b) the balance is not exempt.

"(2) Subsection (1) has effect subject to subsection (4) (which deals with

taxpayers who derive bereavement lump sum payments under section 660XKC of the

Social Security Act 1991).

"(3) Payments under sections 660XKB, 660XKE and 660XKG of the Social

Security Act 1991 (which deal with bereavement payments) are exempt.

"(4) If a taxpayer derives a payment under section 660XKC of the Social

Security Act 1991:

(a) so much of the sum of that payment and other payments under the Social

Security Act 1991 derived by the taxpayer on pension paydays that occurred

during the bereavement lump sum period as do not exceed the tax-free amount

calculated using the exempt bereavement payment calculator A in section 24ABZB

is exempt; and

(b) the balance of the sum is not exempt.

"(5) If:

(a) a taxpayer's partner died; and

(b) the taxpayer would have been qualified for payments under a bereavement

Subdivision but for an exclusion provision (taxpayer's pension or allowance

increased on partner's death to such an extent that no bereavement payments);

and

of the Social Security Act 1991 on one or more of the 7 pension paydays after

the death;

then those payments on that payday or each of those paydays are not treated

under subsection (1) but as follows:

(d) supplementary amounts are exempt;

(e) so much of the balance as exceeds what would have been the balance

(payments less supplementary amounts) if the partner had not died is exempt;

(f) the rest of the balance is not exempt.

Mature age partner allowance

"24ABMB.(1) The treatment of payments of mature age partner allowance under

Part 2.12A of the Social Security Act 1991 is as follows:

Item Category Supplementary amounts Balance of payment

1 Taxpayer not under pension age

Exempt Not exempt

2 Taxpayer under pension age

Exempt Exempt

"(2) Subsection (1) has effect subject to subsection (4) (which deals with

taxpayers who derive bereavement lump sum payments under section 660XKL of the

Social Security Act 1991).

"(3) Payments under sections 660XKK and 660XKM of the Social Security Act

1991 (which deal with bereavement payments) are exempt.

"(4) If a taxpayer derives a payment under section 660XKL of the Social

Security Act 1991:

(a) so much of the sum of that payment and other payments under the Social

Security Act 1991 derived by the taxpayer on pension paydays that occurred

during the bereavement lump sum period as do not exceed the tax-free amount

calculated using the exempt bereavement payment calculator A in section 24ABZB

is exempt; and

(b) the balance of the sum is not exempt.

"(5) For the purposes of this section, a payment under section 660XKH of the

Social Security Act 1991 is taken to be a payment of a mature age partner

allowance.".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 38

Application of amendments

38. The amendments made by this Subdivision apply to payments received under

the Social Security Act 1991 on or after 20 March 1994.

Division 5 - Payment of instalments by companies and certain trustees

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 39

Objects of Division

39. The objects of this Division are:

(a) to include in the new company tax instalment rules provision for

treating a medium taxpayer as large for instalment purposes, if the taxpayer

is part of a group of controlled instalment taxpayers; and

(b) to make it clear that, in calculating the base amount in relation to a

penalty under section 221AZP, only a taxpayer's first estimate for the current

year is relevant; and

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 40

Deemed assessment

40. Section 166A of the Principal Act is amended by omitting from subsection

(2) "Subdivision" and substituting "Division".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 41

Interpretation

41. Section 221AZH of the Principal Act is amended:

(a) by inserting "or because of section 221AZMA" after "221AZK" in the

definition of "large taxpayer";

(b) by inserting ", subject to section 221AZMA," after "means" in the

definition of "medium taxpayer".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 42

Liability to pay instalments

42. Section 221AZK of the Principal Act is amended by inserting in paragraph

(3)(a) "subject to section 221AZMA," before "a taxpayer".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 43

Insertion of new Subdivision

43. After Subdivision B of Division 1C of Part VI of the Principal Act the

following Subdivision is inserted:

"Subdivision BA-Instalment taxpayer groups

Medium taxpayer in large group treated as large taxpayer

"221AZMA. An instalment taxpayer is classified as large, and is not

classified as medium, if:

(a) apart from this section, it would be classified as medium; and

(b) at the beginning of the first day of month 9:

(i) it is a member of an instalment taxpayer group; and

(ii) the total of the respective amounts of likely tax of all

members of the group (including the taxpayer) is more than $300,000.

Instalment taxpayer groups

"221AZMB. An instalment taxpayer group consists of:

(a) an instalment taxpayer that:

(i) controls at least one other instalment taxpayer; but

(ii) is itself controlled by no other instalment taxpayer; and

(b) each instalment taxpayer that the first-mentioned taxpayer controls.

When one instalment taxpayer controls another

"221AZMC. For the purposes of section 221AZMB, an instalment taxpayer ('the

first taxpayer') controls another instalment taxpayer ('the second taxpayer')

if, and only if:

(a) the second taxpayer is a company and:

(i) the first taxpayer is in a position to cast, or control the

casting of, more than 50% of the maximum number of votes that might be cast at

a general meeting of the second taxpayer; or

(ii) the first taxpayer has the power to appoint or remove the

majority of the directors of the second taxpayer; or

(iii) the second taxpayer is, or a majority of its directors

are, accustomed or under an obligation, whether formal or informal, to act

according to the directions, instructions or wishes of the first taxpayer; or

(b) the second taxpayer is a trustee covered by any of paragraphs

221AZK(1)(b) to (f) and:

(i) the first taxpayer beneficially owns, or is able in any way,

whether directly or indirectly, to control the application of, more than 50%

of the interests in the trust property or in the trust income; or

(ii) the first taxpayer has the power to appoint or remove the

trustee of the trust; or

(iii) the trustee of the trust is accustomed or under an

obligation, whether formal or informal, to act according to the directions,

instructions or wishes of the first taxpayer; or

application or applications of this subsection, to control an instalment

taxpayer that in turn is so taken to control the second taxpayer.".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 44

Penalty applies if estimate is too low

44. Section 221AZP of the Principal Act is amended by omitting from

paragraph (1)(a) "the estimate" and substituting "its first or only estimate

for the current year".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 45

Due date for payment of tax

45. Section 221AZT of the Principal Act is amended by inserting in paragraph

(a) "the" after "if".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 46

Application of amendments

46. (1) The amendments made by sections 40, 44 and 45 apply for the 1994-95

year of income and all later years of income.

(2) The amendments made by sections 41, 42 and 43 apply for the 1995-96 year

of income and all later years of income.

Division 6 - Penalties for over-franking dividends

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 47

Object of Division

47. The object of this Division is to alter the rules about over-franking of

dividends so that liability for franking additional tax is not affected by an

initial payment of company tax that reduces franking deficit tax by the amount

calculated according to subsection 160AQJ(2).

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 48

Penalty for over-franking

48. (1) Section 160ARX of the Principal Act is amended by omitting from

subsection (1) "payable" and substituting "that would be payable apart from

subsection 160AQJ(2)".

(2) Section 160ARX of the Principal Act is amended by omitting from

subsection (2) "payable" and substituting "that would be payable apart from

subsection 160AQJ(2)".

(3) Section 160ARX of the Principal Act, as it applies in relation to a

company in relation to a franking year in relation to which the amendments

made by section 103 of the Taxation Laws Amendment Act (No. 3) 1993 do not

apply, is amended by omitting "payable" and substituting "that would be

payable apart from subsection 160AQJ(2)".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 49

Application of amendments

49. The amendment made by subsection 48(1), (2) or (3) applies in relation

to a franking year of a company if, and only if:

(a) all of the following are the case:

(i) 14 December 1993 fell during that franking year;

(ii) the franked amount, class A franked amount, or class B

franked amount, as the case requires, of a dividend paid, during that franking

year, to a shareholder in the company exceeded the required franking amount,

class A required franking amount, or class B required franking amount, as the

case may be, for that dividend;

(iii) the declaration under section 160AQF of the Principal Act

that relates to the dividend mentioned in subparagraph (ii) of this paragraph

was made after 14 December 1993; or

(b) that franking year began after 14 December 1993.

Division 7 - Heritage conservation rebate

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 50

Object of Division

50. The object of this Division is to provide a rebate of tax for

expenditure on certain conservation work on heritage listed buildings and

structures.

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 51

Insertion of new Subdivision

51. After Subdivision AAC of Division 17 of Part III of the Principal Act,

the following Subdivision is inserted:

"Subdivision AAD-Heritage conservation rebate

Object

"159U. The object of this Subdivision is to provide a rebate of tax for

expenditure on certain conservation work on heritage listed buildings and

structures.

Outline of Subdivision

"159UA. The following is a simplified outline of this Subdivision:

A: General

1. The Subdivision provides for rebates of tax for approved expenditure on

certain conservation work on heritage listed buildings and structures. The

expenditure must be at least $5,000. The entitlement to the rebate is set out

in section 159UQ (taxpayers other than partnerships or trustees), section

159UR (partnerships), section 159US (trust estates) and section 159UT

(corporate unit trusts and public trading trusts).

2. The Subdivision also contains a provision (subsection 159UU(1)) ensuring

that deductions are not obtained for amounts for which there is an entitlement

to a rebate.

3. Obtaining a rebate is a 2 step process.

B: Step 1-provisional certificate

1. The taxpayer applies for a provisional certificate (section 159UG)

2. The Minister then determines whether a provisional certificate is to be

issued to the taxpayer and, if it is, issues the certificate (sections 159UJ

and 159UK). The certificate specifies the maximum amount of expenditure that

will be eligible for a rebate. In making his or her decision, the Minister

will take into account criteria and procedures that he or she issues (sections

159UF and 159UJ).

3. The total of the amounts specified in certificates that the Minister

approves in a financial year is not to exceed a limit set by the Minister

(section 159UD). As a result, not all applications that may otherwise have

been approved will be able to be approved, and some taxpayers may get approval

for only part of the expenditure that they will incur.

C: Step 2-final certificate

1. When a taxpayer who has been issued with a provisional certificate

finishes the work, the taxpayer may apply for a final certificate (section

159UM). The work must be completed, and the final certificate applied for,

while the provisional certificate is in force.

2. If the work is to the standard specified in the provisional certificate

(section 159UO) and the expenditure is at least $5,000 (section 159UM), the

taxpayer will be issued with a final certificate.

Definitions

"159UB. In this Subdivision:

'Crown lease' means a lease granted by the Crown under a statutory law of

the Commonwealth, a State or a Territory;

'eligible heritage conservation works expenditure' has the meaning given by

paragraph 159UO(1)(b);

'final certificate' means a certificate issued under section 159UO;

'heritage conservation works' means works for the purpose of the

conservation, maintenance, preservation, restoration, reconstruction, or

adaptation, of a building, or other structure, where the building or

structure:

(a) is of cultural significance; and

(b) is listed in a heritage register declared in writing by the Minister to

be a recognised heritage register;

'maximum approval limit' has the meaning given by section 159UD;

'Minister' means the Minister for Communications and the Arts;

'provisional certificate' means a certificate issued under section 159UJ;

'provisional certificate criteria' means criteria determined under section

159UF;

'provisional certificate procedures' means procedures determined under

section 159UF;

'qualifying expenditure limit' means an amount specified under paragraph

159UK(d);

'recognised heritage body' means a body declared in writing by the Minister

to be a recognised heritage body;

'Secretary' means the Secretary to the Department of Communications and the

Arts.

Expenditure does not include expenditure on plant or articles

"159UC. In this Subdivision, 'expenditure' does not include expenditure on

plant or articles within the meaning of section 54.

Minister must set maximum approval limit

"159UD.(1) The Minister must, by written notice, specify an amount as the

maximum approval limit for each financial year in respect of applications for

provisional certificates.

"(2) The maximum approval limit for a financial year must be specified

before the Minister issues any provisional certificates in that financial

year.

"(3) The Minister must not, under paragraph 159UK(d), specify a qualifying

expenditure limit that would cause the maximum approval limit for that

financial year to be exceeded.

Minister may set closing date for applications

"159UE.(1) The Minister may, by notice published in the Gazette, specify a

day as the closing day for applications for provisional certificates in

relation to a financial year.

"(2) The day specified in the notice must be at least 21 days after the day

on which the notice is published in the Gazette.

"(3) The Minister may, but need not, consider an application given to the

Minister after the day specified in the notice.

Provisional certificate criteria and procedures

"159UF. (1) The Minister must, in writing, determine provisional certificate

criteria to be applied, and provisional certificate procedures to be complied

with, by the Minister in deciding:

(a) whether to issue provisional certificates; and

(b) how much to specify in provisional certificates as qualifying

expenditure limits in respect of expenditure proposed to be incurred on

heritage conservation works, so that each amount specified is at least $5,000

and that the total specified in respect of a financial year does not exceed

the maximum approval limit for the year; and

works to qualify for the issue of final certificates.

"(2) The criteria or procedures may require the Minister, in issuing

provisional certificates, to take into account:

(a) specified heritage conservation criteria; or

(b) recommendations of recognised heritage bodies; or

Application for provisional certificate

"159UG. (1) A taxpayer may apply for a provisional certificate in relation

to expenditure that the taxpayer proposes to incur on heritage conservation

works.

"(2) An application may only be made if the taxpayer, either alone or with

another person or persons:

(a) holds a freehold interest in the land on which the building or structure

concerned is situated; or

(b) holds a Crown lease over the land on which the building or structure

concerned is situated.

Form etc. of application

"159UH. An application for a provisional certificate must:

(a) be in a form approved in writing by the Minister; and

(b) specify the amount of expenditure that the taxpayer proposes to incur on

the works; and

(d) be accompanied by such other information as the Minister, by written

notice, requires.

Minister may request further information

"159UI. (1) The Minister may, in writing, ask a taxpayer to provide

additional information for the purpose of determining the taxpayer's

application.

"(2) The Minister does not have to consider, or further consider, the

taxpayer's application until the additional information has been provided.

Issue of provisional certificate

"159UJ.(1) If the Minister is satisfied that:

(a) the application complies with the requirements of sections 159UG and

159UH; and

(b) the provisional certificate procedures have been complied with; and

provisional certificate criteria; and

(d) in accordance with the provisional certificate criteria, an amount would

be specified in the provisional certificate as the qualifying expenditure

limit;

the Minister must notify the taxpayer in accordance with subsection (2).

"(2) The Minister must notify the taxpayer in writing that a provisional

certificate will be issued if the taxpayer:

(a) pays to the Minister the prescribed fee (if any); and

(b) gives the Minister a statement, signed by the taxpayer, that the

taxpayer has obtained all building and other approvals that are necessary to

enable the work to be lawfully carried out.

"(3) If the taxpayer pays the fee (if any) and gives the Minister the

statement, the Minister must issue the provisional certificate to the

taxpayer.

"(4) If the Minister is not satisfied of the matters in subsection (1), the

Minister must notify the taxpayer, in writing, that the Minister refuses to

issue the certificate.

Contents of provisional certificate

"159UK. The provisional certificate must:

(a) state the taxpayer's name; and

(b) describe the heritage conservation works that the taxpayer proposes to

carry out in relation to the building or structure; and

qualify for the issue of a final certificate; and

(d) specify, in accordance with the provisional certificate criteria, the

qualifying expenditure limit in respect of the works.

When provisional certificate in force

"159UL.(1) A provisional certificate is in force from the time of issue

until the earliest of the following happens:

(a) the taxpayer disposes of his or her interest in the property; or

(b) the taxpayer dies or, being a partnership, company or trust, is

dissolved or otherwise terminated; or

certificate without the Minister granting an extension under subsection (2);

(d) an extension under subsection (2) expires; or

(e) a final certificate is issued in respect of the work.

"(2) The Minister may, on written application by a taxpayer to whom a

provisional certificate has been issued, extend the period under paragraph

(1)(c) in relation to the certificate from 24 months to 27 months.

"(3) An application for an extension must be given to the Minister before

the end of the period of 23 months starting when the provisional certificate

is issued.

Application for final certificate

"159UM. (1) The taxpayer may apply to the Minister for a final certificate,

if the taxpayer has:

(a) completed the heritage conservation works covered by the provisional

certificate, to the standard specified in the provisional certificate, while

the provisional certificate was in force; and

(b) incurred expenditure of at least $5,000 during the period in carrying

out the works.

"(2) The application must:

(a) be in a form approved in writing by the Minister; and

(b) specify the amount of expenditure incurred by the taxpayer during the

period in carrying out the works; and

and

(d) be accompanied by such other information as the Minister, by written

notice, requires.

Person dying-application for final certificate

"159UN. (1) If:

(a) an individual who holds a provisional certificate, or who is a partner

in a partnership that holds a provisional certificate, dies; and

(b) within 3 months after the death, a person mentioned in subsection (2)

makes a written application to the Minister for a final certificate;

for the purposes of this Subdivision, the application is taken to have been

made immediately before the death.

"(2) The application may only be made by:

(a) in any case-an executor, administrator or other personal representative

of the individual; or

(b) if a partnership holds the provisional certificate-one of the surviving

partners.

Final certificate

"159UO.(1) If the Minister is satisfied that the requirements of section

159UM are satisfied in relation to a provisional certificate, the Minister

must issue the taxpayer with a final certificate:

(a) stating the taxpayer's name; and

(b) specifying an amount, being so much of the amount specified by the

taxpayer under paragraph 159UM(2)(b) as does not exceed the qualifying

expenditure limit in the provisional certificate, as the eligible heritage

conservation works expenditure in respect of the heritage conservation works.

"(2) If the Minister is not satisfied that the requirements of section 159UM

are satisfied in relation to a provisional certificate, the Minister must

notify the taxpayer, in writing, that the Minister refuses to issue the final

certificate.

Transactions between persons not at arm's length

"159UP. If:

(a) a taxpayer applies to the Minister for a final certificate; and

(b) the Minister considers that the taxpayer and another party, or parties,

to any transaction involving the incurring of any of the expenditure mentioned

in the application were not dealing with each other at arm's length in

relation to the transaction; and

amount that would have been incurred if the parties had been dealing with each

other at arm's length in relation to the transaction;

the Minister must, for the purposes of section 159UO, disregard the excess.

Heritage conservation rebate

"159UQ. If a taxpayer, other than a partnership or trustee, is issued with a

final certificate that specifies an amount of eligible heritage conservation

works expenditure, the taxpayer is entitled to a rebate of tax in the

taxpayer's assessment for the year of income in which the taxpayer applied for

the final certificate equal to 20% of the eligible heritage conservation works

expenditure.

Heritage conservation rebate-partnerships

"159UR. If:

(a) a partnership is issued with a final certificate that specifies an

amount of eligible heritage conservation works expenditure; and

(b) the partnership has net income for the year of income in which the

partnership applied for the final certificate;

each partner is entitled to a rebate of tax in the partner's assessment for

the year of income equal to:

20% x Eligible heritage x Partner's individual interest in

conservation works the net income of the partnership

expenditure of the year of income

Net income of the partnership of

the year of income

Heritage conservation rebate-trust estates

"159US.(1) This section applies if:

(a) the trustee of a trust estate is issued with a final certificate that

specifies an amount of eligible heritage conservation works expenditure; and

(b) the trust estate has net income for the year of income in which the

trustee applied for the final certificate; and

section 102J), or a public trading trust (within the meaning of section 102R)

in relation to the year of income.

"(2) If a share of the net income of the trust estate is included, under

section 97, in the assessable income of a beneficiary of the trust estate of

the year of income, the beneficiary is entitled to a rebate of tax in the

beneficiary's assessment for the year of income equal to:

20% x Eligible heritage x Beneficiary's share of the net

conservation works income of the trust estate of the

expenditure year of income

Net income of the trust estate

of the year of income

"(3) If the trustee is liable to be assessed under section 98 in respect of

a share, or shares, of the net income of the trust estate of the year of

income, the trustee is entitled, in respect of each such share, to a rebate of

tax in the trustee's assessment for the year of income equal to:

20% x Eligible heritage x Share of the net income of the

conservation works trust estate of the

expenditure year of income

Net income of the trust estate of

the year of income

"(4) If the trustee is liable to be assessed under section 99 or 99A in

respect of the net income, or a part of the net income, of the trust estate of

the year of income, the trustee is entitled to a rebate of tax in the

trustee's assessment for the year of income equal to:

20% x Eligible heritage x Net income, or part of the net

conservation works income, of the trust estate

expenditure of the year of income

Net income of the trust estate of

the year of income

Heritage conservation rebate-corporate unit trusts and public trading trusts

"159UT. If the trustee of a corporate unit trust (within the meaning of

section 102J), or a public trading trust (within the meaning of section 102R),

in relation to a year of income in which the trustee applies for a final

certificate is issued with the final certificate, the trustee is entitled to a

rebate of tax in the trustee's assessment for the year of income equal to 20%

of the eligible heritage conservation works expenditure specified in the

certificate.

No deduction allowed in respect of work covered by a certificate

"159UU.(1) If:

(a) while a provisional certificate is in force, expenditure is incurred by

a taxpayer in carrying out heritage conservation works that are covered by the

certificate; and

(b) apart from this subsection, a deduction or deductions would be allowable

from the taxpayer's assessable income of one or more years of income in

relation to that expenditure;

the deduction is, or the deductions are, only allowable in respect of so much

of the expenditure as exceeds the greater of nil and the amount worked out

using the formula:

Qualifying expenditure limit - Total expenditure previously

specified in the provisional incurred by the taxpayer in

certificate relation to the works while

the certificate was in force

"(2) If a provisional certificate ceases to be in force and either:

(a) the taxpayer did not apply for a final certificate in respect of the

works while the certificate was in force; or

(b) the Minister notifies the taxpayer that the Minister refuses to issue a

final certificate and:

(i) the time for making an application under section 159UV for

review of the refusal decision has expired without an application being made;

(ii) an application under section 159UV for review of the

refusal decision has been made and the Tribunal has dismissed the application

or affirmed the Minister's decision;

then:

of subsection (1) for the year of income in which the provisional certificate

ceases to be in force, and all prior years of income, is allowable from the

taxpayer's assessable income of the year of income in which the provisional

certificate ceases to be in force; and

(d) the amount of any deduction not allowable because of subsection (1) that

would have been allowable for a later year of income is allowable for that

later year of income.

Review of final certificate decision

"159UV.(1) Applications may be made to the Tribunal for review of a decision

of the Minister:

(a) refusing to issue a final certificate; or

(b) specifying a particular amount as the amount of the eligible heritage

conservation works expenditure in a final certificate.

"(2) If the Minister makes a decision covered by subsection (1) and gives

written notice of the decision to the taxpayer, that notice must:

(a) in all cases-include a statement to the effect that, subject to the

Administrative Appeals Tribunal Act 1975, application may be made to the

Tribunal, by or on behalf of any person whose interests are affected by the

decision, for review of the decision; and

(b) except where subsection 28(4) of that Act applies-include a statement to

the effect that a request may be made under section 28 of that Act by or on

behalf of such a person for a statement:

(i) setting out the findings on material questions of fact; and

(ii) referring to the evidence or other material on which those

findings were based; and

(iii) giving the reasons for the decision.

"(3) A failure to comply with the requirements of subsection (2) in relation

to a decision does not affect the validity of the decision.

Provision of information to recognised heritage bodies

"159UW. (1) In spite of section 16, if the Minister considers that it would

assist in determining whether to issue a provisional certificate or final

certificate in relation to any heritage conservation works, the Minister may

give information about the works, that was provided under section 159UG or

159UI, to a recognised heritage body for the purpose of enabling that body to

provide advice to the Minister in relation to the works.

"(2) In spite of section 16, if the Minister considers that it would assist

in determining whether to issue a final certificate in relation to any

heritage conservation works, the Minister may give a copy of the provisional

certificate in relation to the works, or information about the works, that was

provided under section 159UM, to a recognised heritage body for the purpose of

enabling that body to provide advice to the Minister in relation to the issue

of the final certificate in relation to the works.

"(3) Any person who is given information under this section, and any person

or employee under his or her control, is subject to the same rights,

privileges, obligations and liabilities, under subsections 16(2) and (3) in

relation to that information, as if he or she were an officer within the

meaning of section 16.

Delegation by Minister

"159UX. The Minister may, by written notice, delegate to the Secretary, or

to a person holding or performing the duties of a Senior Executive Service

office in the Minister's Department, all or any of the Minister's powers under

this Subdivision other than:

(a) the Minister's power to make declarations for the purposes of the

definition of 'heritage conservation works' or 'recognised heritage body' in

section 159UB; and

(b) the Minister's powers under sections 159UD, 159UE and 159UF. In this

section 'Senior Executive Service office' has the same meaning as in the

Public Service Act 1922.

Disallowable instruments

"159UY. The following are disallowable instruments for the purposes of

section 46A of the Acts Interpretation Act 1901:

(a) a declaration by the Minister for the purposes of the definition of

'heritage conservation works' or 'recognised heritage body' in section 159UB;

(b) a notice by the Minister under section 159UD;

issued by the Minister under section 159UF.".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 52

Qualifying expenditure

52. Section 124ZB of the Principal Act is amended by adding at the end the

following subsection:

"(4) References in subsection (1) or (2) to expenditure of a capital nature

incurred in respect of the construction of a building, or of an extension,

alteration or improvement to a building, are to be read as not applying to

expenditure that is eligible heritage conservation expenditure within the

meaning of Subdivision AAD of Division 17.".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 53

Qualifying expenditure

53. Section 124ZG of the Principal Act is amended by adding at the end the

following subsection:

"(5) References in subsection (2A) to expenditure of a capital nature

incurred in respect of the construction of a building, or of an extension,

alteration or improvement to a building, are to be read as not applying to

expenditure that is eligible heritage conservation expenditure within the

meaning of Subdivision AAD of Division 17.".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 54

Reduction of amounts for purposes of reduced cost base

54. Section 160ZK of the Principal Act is amended:

(a) by inserting after subsection (1) the following subsection:

"(1A) The reference in paragraph (1)(a) to any part of the consideration, of

the costs or of the expenditure that has been allowed, or is allowable as a

deduction to the taxpayer in respect of any year of income is taken to include

an amount that, apart from subsections 124ZB(4) and 124ZG(5), would have been

so allowed or allowable under Division 10C or 10D of Part III.";

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

"(3A) The reference in paragraph (3)(a) to any part of the consideration, of

the costs or of the expenditure that has been allowed, or is allowable as a

deduction to the partnership in respect of any year of income is taken to

include an amount that, apart from subsections 124ZB(4) and 124ZG(5), would

have been so allowed or allowable under Division 10C or 10D of Part III.".

Division 8 - Savings banks

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 55

Object of Division

55. The object of this Division is to remove the exemption from income tax

and withholding tax in respect of the income of certain savings banks.

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 56

Exemptions

56. Section 23 of the Principal Act is amended by omitting paragraph (i).

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 57

Interpretation

57. Section 102M of the Principal Act is amended by omitting ", (i)" from

paragraph (a) of the definition of "exempt entity".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 58

Interpretation

58. Section 121F of the Principal Act is amended by omitting "(i)," from

paragraph (a) of the definition of "relevant exempting provision" in

subsection (1).

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 59

Interpretation

59. Section 124ZA of the Principal Act is amended by omitting "(i)," from

the definition of "exempt body" in subsection (1).

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 60

Liability to withholding tax

60. Section 128B of the Principal Act is amended by omitting from paragraph

(3)(a) "(i),".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 61

Other interpretative provisions

61. Section 160K of the Principal Act is amended by omitting "(i)," from

paragraph (a) of the definition of "relevant exempting provision" in

subsection (1).

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 62

Certain exempting provisions ineffective

62. Section 269B of the Principal Act is amended by omitting from subsection

(1) "(i),".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 63

Application of amendments

63. (1) The amendments made by this Division, other than by section 60,

apply to assessments in respect of income of the 1994-95 year of income and of

all later years of income.

(2) Subject to section 64, the amendment made by section 60 applies to

income derived on or after 1 July 1994.

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 64

Transitional

64. (1) Subject to subsection (2), section 128B of the Principal Act, as in

force immediately before its amendment by this Division, continues to apply to

income consisting of amounts paid under a contract entered into before 1 July

1994 as if paragraph 23(i) of that Act had not been omitted by this Division.

(2) Subsection (1) does not apply if the income consists of:

(a) interest paid in respect of loan money:

(i) that was borrowed by the borrower on or after 1 July 1994;

and

(ii) that, before 1 July 1994, the borrower was not under a

contractual obligation to borrow; or

(b) interest paid in respect of a loan resulting from a 'roll-over', on or

after 1 July 1994, of the whole or a part of a previous loan; or

loan money was lent where the extension occurred on or after 1 July 1994.

Division 9 - Exclusion of low income rebate from provisional tax

arrangements

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 65

Object of Division

65. The object of this Division is to exclude the low income rebate from the

provisional tax arrangements so that the rebate is provided only on

assessment.

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 66

Uplifted provisional tax amendment

66. Section 221YCAA of the Principal Act is amended by inserting in

paragraph (2)(m) "159N," after "159L,".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 67

Provisional tax on estimated income

67. Section 221YDA of the Principal Act is amended:

(a) by inserting in paragraph (1)(da) "(other than section 159N)" after

"Subdivision A";

(b) by inserting in subparagraph (2)(a)(ii) "(other than section 159N)"

after "Subdivision A".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 68

Application of amendments

68. (1) The amendment made by section 66 applies to provisional tax

(including instalments) payable in respect of income of the 1994-95 year of

income and in respect of income of all later years of income.

(2) The amendment made by paragraph 67(a) applies to estimates of

provisional tax (including instalments) payable in respect of income of the

1993-94 year of income (other than estimates included in statements furnished

to the Commissioner before 14 December 1993) and to estimates of provisional

tax in respect of all later years of income.

(3) The amendment made by paragraph 67(b) applies to calculations of

provisional tax on the basis of estimates to which the amendment made by

paragraph 67(a) applies.

Division 10 - Life assurance companies and registered organizations

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 69

Object of Division

69. The object of this Division is to clarify the deductions allowable to

life assurance companies and registered organizations.

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 70

Deductions to be allowable for expenditure incurred in gaining

superannuation premiums

70. (1) Section 111A of the Principal Act is amended by adding at the end

the following subsection:

"(1A) For the purposes of the application of this section to assessments in

respect of income of the year of income in which 1 July 1988 occurred and to

assessments in respect of income of any later year of income that is derived

before the end of the 1989-90 year of income, the reference in subsection (1)

to superannuation premiums does not include a reference to premiums that are:

(a) received in respect of a superannuation policy issued by a life

assurance company in the course of a business carried on by it at or through a

permanent establishment of the company in a foreign country; or

(b) exempt from tax under paragraph 23(r).".

(2) Section 111A of the Principal Act is amended:

(a) by omitting subsection (2);

(b) by adding at the end the following subsection:

"(3) For the purposes of the application of this section to assessments in

respect of income of the 1990-91 year of income or to assessments in respect

of income of any later year of income, the reference in subsection (1) to

superannuation premiums does not include a reference to premiums that are:

(a) received in respect of eligible non-resident policies; or

(b) exempt from tax under section 23AH; or

(3) Section 111A of the Principal Act is amended by adding at the end the

following subsection:

"(4) This section does not apply, and is taken not to have applied, to

superannuation premiums received on or after 1 January 1994.".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 71

Deductions to be allowable for expenditure incurred in gaining the

investment component of certain premiums

71. (1) Section 111AA of the Principal Act is amended by inserting after

subsection (1) the following subsection:

"(1A) The reference in subsection (1) to premiums received in respect of

life assurance policies does not include a reference to premiums that are

received on or after 1 January 1990 and before the end of the 1989-90 year of

income and:

(a) are so received in respect of a life assurance policy issued by a life

assurance company in the course of a business carried on by it at or through a

permanent establishment of the company in a foreign country; or

(b) are exempt from tax under paragraph 23(r).".

(2) Section 111AA of the Principal Act is amended:

(a) by omitting from paragraph (1)(c) "amounts; or" and substituting

"amounts.";

(b) by omitting paragraphs (1)(d) and (e);

"(1B) For the purposes of the application of this section to assessments in

respect of income of the 1990-91 year of income or to assessments in respect

of income of later years of income, the reference in subsection (1) to

premiums received in respect of life assurance policies does not include a

reference to premiums that are:

(a) received in respect of eligible non-resident policies; or

(b) exempt from tax under section 23AH; or

(3) Section 111AA of the Principal Act is amended by adding at the end the

following subsection:

"(4) This section does not apply, and is taken not to have applied, to

premiums received on or after 1 January 1994.".

(4) If, in relation to a particular life assurance company:

(a) as a result of an amendment made by this section, the premiums to which

section 111AA of the Principal Act as amended by this section applies in

respect of a year of income differ from the premiums to which that section

would have applied in respect of that year of income if the amendment had not

been made; and

(b) the company obtained a certificate under section 111AA of the Principal

Act in relation to that year of income;

section 111AA of the Principal Act as amended by this section is taken not to

have applied to premiums received by the company in that year of income

unless:

amended return in respect of that year of income; and

(d) after that commencement but before the amended return is furnished (or

within such further period as the Commissioner allows) the company obtains a

further certificate under section 111AA of the Principal Act as amended by

this section with respect to the operation of that section in relation to that

year of income.

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 72

Repeal of sections 111A and 111AA

72. Sections 111A and 111AA of the Principal Act are repealed.

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 73

Insertion of new sections

73. Before section 111B of the Principal Act the following sections are

inserted:

Reinsurance recoveries and refunds of premiums not assessable income

"111AB. (1) If:

(a) a life assurance company has entered into a contract of reinsurance in

respect of the whole or any part of a life assurance policy; and

(b) a premium paid or payable by the company under the contract of

reinsurance is not an allowable deduction to the company because of paragraph

112BA(1)(c);

the company's assessable income does not include:

in respect of its liability under the life assurance policy, or the part of

that policy, that was reinsured; or

(d) any amount received or recovered by it that is a refund, or in the

nature of a refund, of the premium.

"(2) This section applies to assessments in respect of income of the year of

income in which 1 July 1988 occurred and to assessments in respect of income

of all later years of income.

Deductions to be allowable for expenditure incurred in obtaining

superannuation premiums

"111AC. (1) Subject to this section, the expenses mentioned in subsection

(2) that are incurred by a life assurance company in the year of income in

connection with the obtaining of superannuation premiums are allowable

deductions.

"(2) The expenses to which subsection (1) applies are:

(a) salaries, wages, bonuses, commissions, allowances, or similar benefits,

in respect of the sale, renewal or continuation of superannuation policies;

and

(b) expenditure in recruiting or training people in the selling of

superannuation policies; and

employees of the company to the extent to which the benefits relate to the

provision of administrative, technical or other assistance or support to

people who sell superannuation policies; and

(d) expenditure in developing, or engaging in research in connection with,

superannuation policies; and

(e) any other losses or outgoings to the extent to which they are incurred

in preparing, selling or issuing superannuation policies or collecting

superannuation premiums.

"(3) If:

(a) a provision of this Act (other than this section or section 51 or 111AD)

allows a deduction from a taxpayer's assessable income in respect of a loss,

outgoing or expenditure; and

(b) the provision extends to a taxpayer that is a life assurance company;

the provision has effect in determining the deductions allowable to a life

assurance company as if any reference in the provision to assessable income

included a reference to superannuation premiums.

"(4) Expenses incurred by a life assurance company that are of a capital

nature (other than expenses in respect of which a deduction is allowable

because of subsection (3)) are not allowable deductions under this section.

"(5) Expenses incurred by a life assurance company in the general management

of the business of the company within the meaning of section 113 or 113A are

not allowable deductions under this section.

"(6) If, assuming that:

(a) the Taxation Laws Amendment Act 1994 had not been enacted; and

(b) this Act provided that a life assurance company's assessable income

included the superannuation premiums received by the company;

a deduction would not have been allowed to a life assurance company in respect

of a loss, outgoing or expenditure or a part of a loss, outgoing or

expenditure, then, a deduction is not allowable to the company in respect of

the loss, outgoing or expenditure or the part of the loss, outgoing or

expenditure, as the case may be, under this section or under another provision

of this Act as it has effect because of this section.

"(7) A reference in this section to a deduction in respect of a loss,

outgoing or expenditure includes a reference to a deduction based on, or

calculated by reference to, all or a portion of the loss, outgoing or

expenditure.

"(8) In this section:

'superannuation premiums' does not include:

(a) premiums received in respect of eligible non-resident policies; or

(b) premiums exempt from tax under section 23AH; or

"(9) This section applies to expenses incurred, or to deductions in respect

of a loss, outgoing or expenditure incurred, on or after 1 January 1994.

Deductions to be allowable for expenditure incurred in obtaining the

investment component of certain premiums

"111AD.(1) In this section:

'relevant life assurance premiums' means premiums received in respect of life

assurance policies other than:

(a) superannuation premiums; or

(b) premiums received in respect of exempt policies; or

(d) premiums received in respect of eligible non-resident policies; or

(e) premiums exempt from tax under section 23AH; or

(f) premiums exempt from tax under paragraph 23(r);

'relevant life assurance policy' means a life assurance policy in respect of

which premiums received are relevant life assurance premiums.

"(2) Subject to this section, the expenses mentioned in subsection (3) that

are incurred by a life assurance company in the year of income in connection

with the obtaining of relevant life assurance premiums, to the extent to which

the expenses relate to the investment component of those premiums, are

allowable deductions.

"(3) The expenses to which subsection (2) applies are:

(a) salaries, wages, bonuses, commissions, allowances, or similar benefits,

in respect of the sale, renewal or continuation of relevant life assurance

policies; and

(b) expenditure in recruiting or training people in the selling of relevant

life assurance policies; and

employees of the company to the extent to which the benefits relate to the

provision of administrative, technical or other assistance or support to

people who sell relevant life assurance policies; and

(d) expenditure in developing, or engaging in research in connection with,

relevant life assurance policies; and

(e) any other losses or outgoings to the extent to which they are incurred

in preparing, selling or issuing relevant life assurance policies or

collecting relevant life assurance premiums.

"(4) If:

(a) a provision of this Act (other than this section or section 51 or 111AC)

allows a deduction from a taxpayer's assessable income in respect of a loss,

outgoing or expenditure; and

(b) the provision extends to a taxpayer that is a life assurance company;

the provision has effect in determining the deductions allowable to a life

assurance company as if any reference in the provision to assessable income

included a reference to the investment component of relevant life assurance

premiums.

"(5) Expenses incurred by a life assurance company that are of a capital

nature (other than expenses in respect of which a deduction is allowable

because of subsection (4)) are not allowable deductions under this section.

"(6) Expenses incurred by a life assurance company in the general management

of the business of the company within the meaning of section 113 or 113A are

not allowable deductions under this section.

"(7) If, assuming that:

(a) the Taxation Laws Amendment Act 1994 had not been enacted; and

(b) this Act provided that a life assurance company's assessable income

included the investment component of relevant life assurance premiums received

by the company;

a deduction would not have been allowed to a life assurance company in respect

of a loss, outgoing or expenditure or a part of a loss, outgoing or

expenditure, then, a deduction is not allowable to the company in respect of

the loss, outgoing or expenditure or the part of the loss, outgoing or

expenditure, as the case may be, under this section or under another provision

of this Act as it has effect because of this section.

"(8) This section does not apply to premiums derived by a life assurance

company in a year of income unless the company obtains a certificate by an

authorised actuary, in the approved form, with respect to the operation of

this section in relation to that year of income, before the date of lodgment

of the return of income of the company of the year of income or within such

further time as the Commissioner allows.

"(9) A reference in this section to a deduction in respect of a loss,

outgoing or expenditure includes a reference to a deduction based on, or

calculated by reference to, all or a portion of the loss, outgoing or

expenditure.

"(10) This section applies to expenses incurred, or to deductions in respect

of a loss, outgoing or expenditure incurred, on or after 1 January 1994.".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 74

Reduction in deductions that are not exclusively related to

producing assessable income

74. (1) Section 111C of the Principal Act is amended:

(a) by omitting from paragraph (1)(a) "51 or 113" and substituting "51,

111AC (other than subsection (3)), 111AD (other than subsection (4)) or 113";

(b) by omitting from subsection (2) all the words from and including

"where:" to the end of the subsection;

"(4) In this section:

'Deduction' means the amount of the deduction concerned;

'Assessable income', in relation to a life assurance company includes:

(a) superannuation premiums to which section 111AC applies that are received

by the company; and

(b) the investment component of relevant life assurance premiums to which

section 111AD applies that are received by the company;

'Total income' means the total of all the amounts that would be assessable

income of the company apart from any exempting provision.".

(2) The amendment made by paragraph (1)(a) applies in apportioning

deductions in respect of a loss, outgoing or expenditure (including a

deduction based on, or calculated by reference to, all or a portion of a loss,

outgoing or expenditure) incurred on or after 1 January 1994.

(3) The amendments made by paragraphs (1)(b) and (c) apply in respect of

premiums received on or after 1 January 1994.

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 75

Deductions not allowable for expenditure incurred in gaining certain

premium income

75. (1) Section 112 of the Principal Act is amended by inserting in

subparagraph (1)(a)(i) "to which section 111A applies" after "premiums".

(2) The amendment made by subsection (1) applies to expenditure incurred on

or after 1 January 1990.

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 76

Repeal of section and substitution of new section

76. Section 112 of the Principal Act is repealed and the following section

is substituted:

Deductions not allowable for expenditure incurred in gaining certain premium

income

"112. (1) A deduction is not allowable to a life assurance company in

respect of expenditure incurred exclusively in gaining:

(a) premiums that are excluded from assessable income by section 111 other

than:

(i) superannuation premiums to which section 111AC applies; or

(ii) the investment component of relevant life assurance

premiums to which section 111AD applies; or

(b) the risk component of any such relevant life assurance premiums.

"(2) This section applies to expenditure incurred on or after 1 January

1994.".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 77

Insertion of new section

77. After section 112A of the Principal Act the following section is

inserted:

Deductions not allowable for benefits or reinsurance premiums

"112BA. (1) Despite any other provision of this Act, a deduction is not

allowable to a life assurance company in respect of:

(a) a benefit paid or payable under a life assurance policy; or

(b) the inclusion of an amount in the company's reserves for the purpose of

meeting any future liability (including a contingent liability) of the company

to pay benefits to which paragraph (a) would apply; or

of the whole or any part of a life assurance policy; or

(d) an amount paid or payable to, or to an associate of, the holder of a

life assurance policy in settlement of a dispute as to the liability of the

company under the policy.

"(2) A reference in subsection (1) to a benefit paid or payable under a life

assurance policy:

(a) includes a reference to an amount paid or payable:

(i) in respect of a claim under the policy; or

(ii) as consideration for, in connection with, or as a

consequence of, the surrender, cancellation, forfeiture, termination or

disposal of the policy or any rights under the policy; or

(iii) in respect of a bonus under the policy; or

(iv) in respect of an annuity under the policy; or

(v) that is a refund, or is in the nature of a refund, of a premium that,

under section 111, is not included in the company's assessable income; but

(b) does not include any interest payable under section 57 of the Insurance

Contracts Act 1984.

"(3) To remove any doubt, it is declared that a supplementary benefit (known

as a rider benefit) that is paid or payable in respect of a non-life assurance

risk (including an accident and disability risk, a sickness risk and a trauma

risk) and in respect of which the premiums received by the life assurance

company that issued the relevant life assurance policy are included in the

company's assessable income is not a benefit paid or payable under a life

assurance policy for the purposes of subsection (1).

"(4) In this section:

'associate' has the same meaning as in subsection 26AAB(14).

"(5) This section applies to assessments in respect of income of the year of

income in which 1 July 1988 occurred and to assessments in respect of income

of all later years of income.".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 78

Expenses of general management relating to producing assessable income

78. (1) Section 113 of the Principal Act is amended by adding at the end the

following subsection:

"(5) In this section:

'assessable income', in relation to a life insurance company, includes:

(a) superannuation premiums to which section 111AC applies that are received

by the company; and

(b) the investment component of relevant life assurance premiums to which

section 111AD applies that are received by the company.".

(2) The amendment made by subsection (1) applies to expenditure incurred on

or after 1 January 1994.

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 79

Insertion of new section

79. After section 113 of the Principal Act the following section is

inserted:

Expenses of general management incurred in obtaining certain premiums

"113A. (1) If:

(a) expenditure is incurred by a life assurance company in the year of

income in the general management of the company's business; and

(b) the expenditure is not an allowable deduction under section 113 because

of paragraph 113(3)(b);

the expenditure is an allowable deduction to the extent to which it was

incurred in gaining or producing:

(d) the investment component of relevant life insurance premiums to which

section 111AD applies.

"(2) If, assuming that:

(a) the Taxation Laws Amendment Act 1994 had not been enacted; and

(b) this Act provided that a life assurance company's assessable income

included the superannuation premiums and the investment component of relevant

life assurance premiums received by the company;

a deduction would not have been allowed to a life assurance company in respect

of a loss, outgoing or expenditure or a part of a loss, outgoing or

expenditure, then, a deduction is not allowable to the company in respect of

the loss, outgoing or expenditure or the part of the loss, outgoing or

expenditure, as the case may be, under this section.

"(3) For the purposes of this section, expenditure of a capital nature is

taken not to be expenditure incurred in the general management of the business

of the company.

"(4) A reference in this section to a deduction in respect of a loss,

outgoing or expenditure includes a reference to a deduction based on, or

calculated by reference to, all or a portion of the loss, outgoing or

expenditure.

"(5) In this section:

'relevant life assurance premiums' means premiums received in respect of

life assurance policies other than:

(a) superannuation premiums; or

(b) premiums received in respect of exempt policies; or

(d) premiums received in respect of eligible non-resident policies; or

(e) premiums exempt from tax under section 23AH; or

(f) premiums exempt from tax under paragraph 23(r).

"(6) This section applies to expenses incurred, or to deductions in respect

of a loss, outgoing or expenditure incurred, on or after 1 January 1994.".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 80

Apportionment of current year deductions between classes

80. (1) Section 116CF of the Principal Act is amended:

(a) by omitting from subsections (4), (5) and (6) "subsection 111A(1)" and

substituting "section 111AC"; and

(b) by omitting from subsections (4), (6) and (7) "section 111AA" and

substituting "section 111AD".

(2) Subsections 116CF(4), (5), (6) and (7) of the Principal Act as amended

by subsection (1) of this section apply in relation to premiums received by a

life assurance company on or after 1 January 1994.

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 81

Insertion of new section

81. After section 116GD of the Principal Act the following section is

inserted:

Reinsurance recoveries and refunds of premiums not assessable income

"116GE. (1) If:

(a) a registered organization has entered into a contract of reinsurance in

respect of the whole or any part of a life assurance policy; and

(b) a premium paid or payable by the organization under the contract of

reinsurance is not an allowable deduction to the organization because of

paragraph 116HAD(1)(c);

the organization's assessable income does not include:

in respect of its liability under the life assurance policy, or the part of

that policy, that was reinsured; or

(d) any amount received or recovered by it that is a refund, or in the

nature of a refund, of the premium.

"(2) This section applies to assessments in respect of income of the year of

income in which 1 July 1988 occurred and to assessments in respect of income

of all later years of income.".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 82

Deductions allowable from assessable income of registered organizations

82. (1) Section 116H of the Principal Act is amended:

(a) by inserting after paragraph (a) the following paragraph:

"(aa) any deductions that, apart from this section, would be allowable to

the organization in relation to the year of income under section 116HAB or

116HAC; and";

(b) by adding at the end the following subsection:

"(2) In paragraph (1)(b):

'assessable income', in relation to a registered organization:

(a) includes superannuation premiums to which section 116HAB applies that

are received on or after 1 January 1994 by the organization; and

(b) includes the investment component of relevant life assurance premiums to

which section 116HAC applies that are received on or after 1 July 1994 by the

organization.".

(2) The amendment made by paragraph (1)(a) applies to deductions in respect

of a loss, outgoing or expenditure (including a deduction based on, or

calculated by reference to, all or a portion of a loss, outgoing or

expenditure) incurred:

(a) in respect of deductions under section 116HAB-on or after 1 January

1994; or

(b) in respect of deductions under section 116HAC-on or after 1 July 1994.

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 83

Deductions to be allowable for expenditure incurred in gaining

superannuation premiums

83. (1) Section 116HA of the Principal Act is amended by adding at the end

the following subsection:

"(2) For the purposes of the application of this section to assessments in

respect of income of the year of income in which 1 July 1988 occurred and to

assessments in respect of income of any later year of income that is derived

before the end of the 1989-90 year of income, if:

(a) a registered organization receives premiums (the 'foreign premiums') in

respect of a superannuation policy issued by it in the course of a business

carried on by it at or through a permanent establishment of the organization

in a foreign country; and

(b) the organization's assessable income does not include the income from

the investment of the foreign premiums;

then the reference in subsection (1) to superannuation premiums does not

include a reference to the foreign premiums.".

(2) Section 116HA of the Principal Act is amended by adding at the end the

following subsection:

"(3) For the purposes of the application of this section to assessments in

respect of income of the 1990-91 year of income or to assessments in respect

of income of any later year of income, the reference in subsection (1) to

superannuation premiums does not include a reference to premiums that are

exempt from tax under section 23AH.".

(3) Section 116HA of the Principal Act is amended by adding at the end the

following subsection:

"(4) This section does not apply to premiums received on or after 1 January

1994.".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 84

Repeal of sections 116HA and 116HAA

84. Sections 116HA and 116HAA of the Principal Act are repealed.

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 85

Insertion of new sections

85. Before section 116HB of the Principal Act the following sections are

inserted:

Deductions to be allowable for expenditure incurred in obtaining

superannuation premiums

"116HAB. (1) Subject to this section, the expenses mentioned in subsection

(2) that are incurred by a registered organization in the year of income in

connection with the obtaining of superannuation premiums are allowable

deductions.

"(2) The expenses to which subsection (1) applies are:

(a) salaries, wages, bonuses, commissions, allowances, or similar benefits,

in respect of the sale, renewal or continuation of superannuation policies;

and

(b) expenditure in recruiting or training people in the selling of

superannuation policies; and

employees of the organization to the extent to which the benefits relate to

the provision of administrative, technical or other assistance or support to

people who sell superannuation policies; and

(d) expenditure in developing, or engaging in research in connection with,

superannuation policies; and

(e) any other losses or outgoings to the extent to which they are incurred

in preparing, selling or issuing superannuation policies or collecting

superannuation premiums; and

(f) expenses in the general management of the organization's business to the

extent to which the expenses are incurred in gaining or producing

superannuation premiums.

"(3) If:

(a) a provision of this Act (other than this section or section 51, 116H or

116HAC) allows a deduction from a taxpayer's assessable income in respect of a

loss, outgoing or expenditure; and

(b) the provision extends to a taxpayer that is a registered organization;

the provision has effect in determining the deductions allowable to a

registered organization as if any reference in the provision to assessable

income included a reference to superannuation premiums.

"(4) Expenses incurred by a registered organization (other than expenses in

respect of which a deduction is allowable because of subsection (3)) that are

of a capital nature are not allowable deductions under this section.

"(5) If, assuming that:

(a) the Taxation Laws Amendment Act 1994 had not been enacted; and

(b) this Act provided that a registered organization's assessable income

included the superannuation premiums received by the organization;

a deduction would not have been allowed to a registered organization in

respect of a loss, outgoing or expenditure or a part of a loss, outgoing or

expenditure, then, a deduction is not allowable to the organization in respect

of the loss, outgoing or expenditure or the part of the loss, outgoing or

expenditure, as the case may be, under this section or under another provision

of this Act as it has effect because of this section.

"(6) A reference in this section to a deduction in respect of a loss,

outgoing or expenditure includes a reference to a deduction based on, or

calculated by reference to, all or a portion of the loss, outgoing or

expenditure.

"(7) In this section:

'superannuation premiums' do not include premiums that are exempt from tax

under section 23AH.

"(8) This section applies to expenses incurred, or to deductions in respect

of a loss, outgoing or expenditure incurred, on or after 1 January 1994.

Deductions to be allowable for expenditure incurred in obtaining the

investment component of certain premiums

"116HAC. (1) In this section:

'authorised actuary', in relation to a registered organization, means a

Fellow or an Accredited Member of the Institute of Actuaries of Australia;

'relevant life assurance premiums' means premiums received in respect of

life assurance policies other than:

(a) superannuation premiums; or

(b) premiums received in respect of eligible policies; or

(d) premiums exempt from tax under section 23AH;

'relevant life assurance policy' means a life assurance policy in respect of

which premiums received are relevant life assurance premiums.

"(2) Subject to this section, the expenses mentioned in subsection (3)

incurred by a registered organization in the year of income in connection with

the obtaining of relevant life assurance premiums, to the extent to which the

expenses relate to the investment component of those premiums, are allowable

deductions.

"(3) The expenses to which subsection (2) applies are:

(a) salaries, wages, bonuses, commissions, allowances, or similar benefits,

in respect of the sale, renewal or continuation of relevant life assurance

policies; and

(b) expenditure in recruiting or training people in the selling of relevant

life assurance policies; and

employees of the organization to the extent to which the benefits relate to

the provision of administrative, technical or other assistance or support to

people who sell relevant life assurance policies; and

(d) expenditure in developing, or engaging in research in connection with,

relevant life assurance policies; and

(e) any other losses or outgoings to the extent to which they are incurred

in preparing, selling or issuing relevant life assurance policies or

collecting relevant life assurance premiums; and

(f) expenses in the general management of the organization's business to the

extent to which the expenses are incurred in gaining or producing relevant

life assurance premiums.

"(4) If:

(a) a provision of this Act (other than this section or section 51, 116H or

116HAB) allows a deduction from a taxpayer's assessable income in respect of a

loss, outgoing or expenditure; and

(b) the provision extends to a taxpayer that is a registered organization;

the provision has effect in determining the deductions allowable to a

registered organization as if any reference in the provision to assessable

income included a reference to the investment component of relevant life

assurance premiums.

"(5) Expenses incurred by a registered organization (other than expenses in

respect of which a deduction is allowable because of subsection (4)) that are

of a capital nature are not allowable deductions under this section.

"(6) If, assuming that:

(a) the Taxation Laws Amendment Act 1994 had not been enacted; and

(b) this Act provided that a registered organization's assessable income

included the investment component of relevant life assurance premiums received

by the organization;

a deduction would not have been allowed to a registered organization in

respect of a loss, outgoing or expenditure or a part of a loss, outgoing or

expenditure, then, a deduction is not allowable to the organization in respect

of the loss, outgoing or expenditure or the part of the loss, outgoing or

expenditure, as the case may be, under this section or under another provision

of this Act as it has effect because of this section.

"(7) This section does not apply to premiums derived by a registered

organization in a year of income unless the organization obtains a certificate

by an authorised actuary, in the approved form, with respect to the operation

of this section, before the date of lodgment of the return of income of the

organization of the year of income or within such further time as the

Commissioner allows.

"(8) A reference in this section to a deduction in respect of a loss,

outgoing or expenditure includes a reference to a deduction based on, or

calculated by reference to, all or a portion of the loss, outgoing or

expenditure.

"(9) This section applies to expenses incurred, or to deductions in respect

of a loss, outgoing or expenditure incurred, on or after 1 July 1994.

Deductions not allowable for benefits or reinsurance premiums

"116HAD. (1) Despite any other provision of this Act, a deduction is not

allowable to a registered organization in respect of:

(a) a benefit paid or payable under a life assurance policy; or

(b) the inclusion of an amount in the organization's reserves for the

purpose of meeting any future liability (including a contingent liability) of

the organization to pay benefits to which paragraph (a) would apply; or

reinsurance of the whole or any part of a life assurance policy; or

(d) an amount paid or payable to, or to an associate of, the holder of a

life insurance policy in settlement of a dispute as to the liability of the

organization under the policy.

"(2) A reference in subsection (1) to a benefit paid or payable under a life

assurance policy includes a reference to an amount paid or payable:

(a) in respect of a claim under the policy; or

(b) as consideration for, in connection with, or as a consequence of, the

surrender, cancellation, forfeiture, termination or disposal of the policy or

any rights under the policy; or

(d) in respect of an annuity under the policy; or

(e) that is a refund, or is in the nature of a refund, of a premium that is

not included in the organization's assessable income.

"(3) To remove any doubt, it is declared that a supplementary benefit (known

as a rider benefit) that is paid or payable in respect of a non-life assurance

risk (including an accident and disability risk, a sickness risk and a trauma

risk) and in respect of which the premiums received by the registered

organization that issued the relevant life assurance policy are included in

the organization's assessable income is not a benefit paid or payable under a

life assurance policy for the purposes of subsection (1).

"(4) If a registered organization makes a late payment in respect of an

amount that the organization is liable to pay under, or in relation to, a life

assurance policy, any interest paid or payable by the organization because of

the late payment is not a benefit paid or payable under the policy for the

purposes of subsection (1).

"(5) In this section:

'associate' has the same meaning as in subsection 26AAB(14).

"(6) This section applies to assessments in respect of income of the year of

income in which 1 July 1988 occurred and to assessments in respect of income

of all later years of income.".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 86

Period allowed for furnishing amended returns without incurring penalty

86. (1) If:

(a) a taxpayer furnished a return of income before the commencement of this

section; and

(b) the return included a claim for a deduction under Division 8 or 8A of

the Principal Act; and

was allowable under that Division; and

(d) that deduction is taken by the Principal Act as amended by this Division

not to have been allowable; and

(e) within 6 months (or such further period as the Commissioner allows)

after the day on which this Act received the Royal Assent the taxpayer

furnishes an amended return that does not include a claim for the deduction;

no penalty is payable by the taxpayer because of the claim for the deduction

but the Income Tax (Interest on Underpayments) Act 1986 applies in respect of

any underpayment of tax as a result of any increase in tax that is payable

because the deduction is not allowable.

(2) The question whether a matter was reasonably arguable as mentioned in

paragraph (1)(c) is to be determined in the same way as the question would be

determined under section 222C of the Income Tax Assessment Act 1936 if that

section were applicable.

PART 4 - AMENDMENT OF THE SUPERANNUATION GUARANTEE (ADMINISTRATION)

ACT 1992

Division 1 - Principal Act

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 88

Principal Act

88. In this Part, "Principal Act" means the Superannuation Guarantee

(Administration) Act 1992.*3*

Superannuation Guarantee (Administration) Act 1992

*3* No. 111, 1992, as amended. For previous amendments, see No. 208, 1992; and

No. 7, 1993.

Division 2 - Liability of Commonwealth authorities

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 89

Object of Division

89. The object of this Division is to ensure that Commonwealth authorities

are liable to pay superannuation guarantee charge.

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 90

Repeal of section and substitution of new section

90. (1) Section 5 of the Principal Act is repealed and the following section

is substituted:

Application of Act to Commonwealth

"5. (1) The Commonwealth is not liable to pay superannuation guarantee

charge.

"(2) This Act applies in all other respects as if the Commonwealth were

liable to pay superannuation guarantee charge.

"(3) Part 8 has effect as if any superannuation guarantee charge in respect

of a superannuation guarantee shortfall of the Commonwealth had been paid on

14 August in the year following the year to which the charge relates.

"(4) Subsection 14ZX(4), section 14ZZ and Divisions 4 and 5 of Part IVC of

the Taxation Administration Act 1953 do not apply to the Commonwealth.".

(2) The amendment made by subsection (1) applies to assessments of

superannuation guarantee shortfall for the year beginning on 1 July 1993 and

for all later years.

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 91

Insertion of new section

91. The following section is inserted at the end of Part 1 of the Principal

Act:

Application of Act to Commonwealth authorities

"5A. (1) In this section:

'Commonwealth authority' means an authority or body that is established by

or under a law of the Commonwealth.

"(2) If:

(a) a law, or a provision of a law, passed before the commencement of this

section purports to exempt a Commonwealth authority from liability to pay:

(i) taxes under the laws of the Commonwealth; or

(ii) certain taxes under the laws of the Commonwealth; and

(b) apart from this subsection, the exemption would apply to superannuation

guarantee charge;

that law or provision is taken, for the year beginning on 1 July 1993 and for

all later years, not to have exempted, or not to exempt, that authority from

liability to pay the charge.

"(3) If:

(a) a law, or a provision of a law, passed after the commencement of this

section purports to exempt a Commonwealth authority from liability to pay:

(i) taxes under the laws of the Commonwealth; or

(ii) certain taxes under the laws of the Commonwealth; and

(b) apart from this subsection, the exemption would apply to superannuation

guarantee charge;

the law or provision is not taken, for the year beginning on 1 July 1993 or

for any later year, to have exempted, or to exempt, the authority from

liability to pay the charge unless the law or provision expressly exempts the

authority from liability to pay the charge.".

Division 3 - Ordinary time earnings

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 92

Object of Division

92. The object of this Division is to provide that ordinary time earnings do

not include certain lump sum payments made to employees on the termination of

their employment.

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 93

Interpretation-general

93. (1) Section 6 of the Principal Act is amended by omitting subparagraph

(a)(i) of the definition of "ordinary time earnings" in subsection (1)

and substituting the following subparagraph:

"(i) earnings in respect of ordinary hours of work other than earnings

consisting of a lump sum payment of any of the following kinds made to the

employee on the termination of his or her employment:

(A) a payment in lieu of unused sick leave;

(B) a payment in lieu of unused annual leave within the

meaning of subsection 26AC(1) of the Income Tax Assessment Act 1936;

meaning of subsection 26AD(1) of the Income Tax Assessment Act 1936; and".

(2) The amendment made by subsection (1) applies to assessments of

superannuation guarantee shortfall for the year beginning on 1 July 1993 and

for all later years.

Division 4 - Industrial award

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 94

Object of Division

94. The object of this Division is to allow employers in the maritime

industry who contribute to the Seafarers' Retirement Fund to use the notional

earnings base.

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 95

Interpretation: notional earnings base where employer contributing to

superannuation fund for benefit of employee immediately before 21 August 1991

95. Section 13 of the Principal Act is amended by inserting after paragraph

(a) of the definition of "reference earnings" in subsection (5) the

following paragraph:

"(aa) if the employer is contributing for the benefit of the employee in

relation to a contribution period to the superannuation fund known as the

Seafarers' Retirement Fund that was established by a trust deed on 3 May

1973-the benchmark rate stated in the trust deed; and".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 96

Insertion of new section

96. After section 13 of the Principal Act the following section is

inserted:

Interpretation: notional earnings base where employer contributing to

Seafarers' Retirement Fund

"13A. (1) This section deals with the meaning of the expression 'notional

earnings base' in relation to an employee if:

(a) an employer is contributing for the benefit of the employee in relation

to a contribution period to the superannuation fund known as the Seafarers'

Retirement Fund that was established by a trust deed on 3 May 1973; and

(b) the employer was not so contributing immediately before 21 August 1991;

and

been so contributing immediately before that date.

"(2) The expression 'notional earnings base' has, in relation to the

employee, the same meaning as in section 13.".

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 97

Application of amendments

97. The amendments made by sections 95 and 96 have effect as if those

sections had commenced on 1 July 1992, immediately after the commencement of

the Principal Act.

Division 5 - Contractors

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 98

Object of Division

98. The object of this Division is to make it clear that payments made to

contractors for their labour are treated as salary or wages.

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 99

Interpretation-salary or wages

99. (1) Section 11 of the Principal Act is amended by inserting after

paragraph (1)(b) the following paragraph:

"(ba) payments under a contract referred to in subsection 12(3) that are

made in respect of the labour of the person working under the contract; and".

(2) The amendment made by subsection (1) has effect as if that subsection

had commenced on 1 July 1992, immediately after the commencement of the

Principal Act.

Division 6 - Payments to estate of a dead employee

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 100

Object of Division

100. The object of this Division is to allow an employer to pay to the

estate of an employee who has died contributions that could have been paid at

the time of the death.

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 101

Reduction of charge percentage where contribution made to fund other

than defined benefit superannuation scheme

101. (1) Section 23 of the Principal Act is amended by inserting after

subsection (9) the following subsection:

(Contributions to estate of deceased employee)

"(9A) If:

(a) an employee has died; and

(b) the employer would, if the employee had not died, have made a

contribution to a complying superannuation fund for the benefit of the

employee; and

an amount equal to the amount of the contribution that would have been paid;

the amount paid is taken for the purposes of this section to have been a

contribution made by the employer to a complying superannuation fund for the

benefit of the employee.".

(2) The amendment made by subsection (1) has effect as if that subsection

had commenced on 1 July 1992, immediately after the commencement of the

Principal Act.

Division 7 - Contribution periods

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 102

Object of Division

102. The object of this Division is to defer the introduction of quarterly

contributions until the 1994-95 year.

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 103

Reduction of charge percentage if contribution made to fund other

than defined benefit superannuation scheme

103. (1) Section 23 of the Principal Act is amended by inserting after

subsection (6) the following subsection:

(Contribution made during a particular period may be taken into account for

any of several periods)

"(6A) A contribution to a complying superannuation fund made by an employer

for the benefit of an employee in the period starting on 1 July 1993 and

ending on 28 July 1994 may be taken into account under this section as if it

had been made in any of the contribution periods in the 1993-94 year.".

(2) The amendment made by subsection (1) applies to assessments of

superannuation guarantee shortfall for the year beginning on 1 July 1993 and

for all later years.

Division 8 - Reduction of notional earnings base and ordinary time

earnings

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 104

Object of Division

104. The object of this Division is to ensure that employers are not liable

to superannuation guarantee charge in respect of amounts that are excluded

from the definition of salary or wages.

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 105

Reduction of charge percentage if contribution made to fund other

than defined benefit superannuation scheme

105. (1) Section 23 of the Principal Act is amended by adding at the end the

following subsections:

(Reduction of notional earnings base if amount excluded from employee's salary

or wages)

"(11) If an employee's notional earnings base includes an amount of the

employee's salary or wages that, because of section 27 or 28, is not taken

into account for the purpose of making a calculation under section 18 or 19,

the employee's notional earnings base for the purposes of this section is

taken to be reduced by that amount.

(Reduction of ordinary time earnings if amount excluded from employee's salary

or wages)

"(12) If, because of section 27 or 28, an amount of an employee's salary or

wages is not taken into account for the purpose of making a calculation under

section 18 or 19, the employee's ordinary time earnings for the purposes of

this section are taken to be reduced by that amount.".

(2) The amendment made by subsection (1) has effect as if that subsection

had commenced on 1 July 1992, immediately after the commencement of the

Principal Act.

Division 9 - Flat dollar contributions and part-time employees

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 106

Object of Division

106. The object of this Division is to clarify the treatment of flat dollar

superannuation contributions made by certain employers and to adjust notional

earnings bases for part-time employees.

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 107

Certain contributions taken to be in accordance with industrial

award that specifies notional earnings base

107. (1) Section 25A of the Principal Act is amended:

(a) by adding at the end of subsection (1) the following word and

paragraphs:

"; and (c) the award was operative immediately before 21 August 1991; and

(d) immediately before that date:

(i) the award specified an amount of money as mentioned in

paragraph (a); and

(ii) that amount was required to be adjusted as mentioned in

paragraph (b).";

(b) by omitting paragraph (2)(b) and substituting the following paragraph:

"(b) the award has not, on or after 21 August 1991, been amended in a way

that has the effect of reducing an employee's notional earnings base;";

"(3) Subject to subsection (4), the employee's notional earnings base in

relation to a contribution period for the purposes of subsection 23(2) is:

(a) subject to paragraph (b), the adjustment earnings in respect of the

period; or

(b) if the employee is a part-time employee-the amount worked out using the

formula:

Number of hours employed x Adjustment earnings

Full-time employee's hours

where:

'Number of hours employed' means the number of hours for which the employee is

employed in the period;

'Full-time employee's hours' means the number of ordinary hours of work for

which an equivalent full-time employee would have been employed in the period

under the award;

'Adjustment earnings' means the adjustment earnings in respect of the

period.".

(2) The amendments made by subsection (1) apply to assessments of

superannuation guarantee shortfall for the year beginning on 1 July 1993 and

for all later years.

Division 10 - Retirement of employee due to permanent incapacity or

invalidity

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 108

Object of Division

108. The object of this Division is to provide for payment of a shortfall

component to an employee who retires due to permanent incapacity or

invalidity.

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 109

Repeal of section and substitution of new section

109. (1) Section 66 of the Principal Act is repealed and the following

section is substituted:

Payment to employee retired due to permanent incapacity or invalidity

"66. If:

(a) the employee is under 55 but has retired because of permanent incapacity

or permanent invalidity; and

(b) the former employee has lodged with the Commissioner:

(i) written notice of the retirement; and

(ii) a copy of a certificate signed by 2 registered medical

practitioners certifying that the former employee is unlikely to be able to

work again in a capacity for which he or she is reasonably qualified by

education, training or experience;

the Commissioner must pay the amount of the shortfall component to the former

employee.".

(2) The amendment made by subsection (1) applies to assessments of

superannuation guarantee shortfall for the year beginning on 1 July 1993 and

for all later years.

PART 5 - AMENDMENT OF THE TAXATION LAWS AMENDMENT (SUPERANNUATION)

ACT 1989

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 110

Principal Act

110. In this Part, "Principal Act" means the Taxation Laws Amendment

(Superannuation) Act 1989.*4*

*4* No. 105, 1989.

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 111

Object of Part

111. This Part makes an amendment that is consequential on the amendments

made by Division 10 of Part 3.

TAXATION LAWS AMENDMENT ACT 1994No. 56, 1994

- SECT 112

Amendment of section 17 of the Principal Act

112. (1) Section 17 of the Principal Act is amended by omitting subsection

(2) of the section 112 that was inserted in the Income Tax Assessment Act 1936

by section 17 of the Principal Act and substituting the following subsection:

"(2) This section does not apply to superannuation premiums to which section

111A applies.".

(2) To remove any doubt, it is declared that, for all purposes (including

the purposes of section 65 of the Taxation Laws Amendment (Superannuation) Act

1989), the section that was inserted in the Income Tax Assessment Act 1936 by

section 17 of the Principal Act is taken to have been that section as amended

by subsection (1) of this section.

(3) This section does not affect the operation of paragraph 12(b) of the

Taxation Laws Amendment Act (No. 5) 1989 and, to remove any doubt, it is

declared that the subsection 112(2) of the Income Tax Assessment Act 1936 that

was omitted by that paragraph is taken to have been that subsection as amended

by subsection (1) of this section.

Notes to the Taxation Laws Amendment Act 1994

Note 1

The Taxation Laws Amendment Act 1994 as shown in this compilation comprises
Act No. 56, 1994 amended as indicated in the Tables below.

Table of Acts

Act	Number and year	Date of Assent	Date of commencement	Application, saving or transitional provisions
Taxation Laws Amendment Act 1994	56, 1994	7 Apr 1994	See s. 2
Tax Laws Amendment (2010 Measures No. 2) Act 2010	75, 2010	28 June 2010	Schedule 6 (item 30): 29 June 2010	—

Table of Amendments

ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted
Provision affected	How affected
Div. 11 of Part 3...........	rep. No. 75, 2010
S. 87...................	rep. No. 75, 2010

Taxation Laws Amendment Act 1994

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