Taxation Laws Amendment (Infrastructure Borrowings) Act 1997

Administered by Department of the Treasury

Legislation au C2004A05195 Not in force Act

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No. 104, 1997

Taxation Laws Amendment (Infrastructure Borrowings) Act 1997

No. 104, 1997

An Act to amend the law relating to infrastructure borrowings

Contents

1 Short title..................................1

2 Commencement..............................1

3 Schedule(s).................................2

Schedule 1—Amendment of the Development Allowance Authority Act 1992 3

Part 1—Termination of application, advice and certificate issue provisions etc. 3

Part 2—Restriction on varying existing certificates 6

Schedule 2—Amendment of the Income Tax Assessment Act 1936 9

Taxation Laws Amendment (Infrastructure Borrowings) Act 1997

No. 104, 1997

An Act to amend the law relating to infrastructure borrowings

[Assented to 30 June 1997]

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Taxation Laws Amendment (Infrastructure Borrowings) Act 1997.

2 Commencement

This Act commences on the day on which it receives the Royal Assent.

3 Schedule(s)

Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Amendment of the Development Allowance Authority Act 1992

Part 1—Termination of application, advice and certificate issue provisions etc.

1 At the end of section 93A

Add:

However, the incentives have been terminated for new cases by the Taxation Laws Amendment (Infrastructure Borrowings) Act 1997.

2 At the end of paragraph 93B(a)

Add:

Note: As a result of amendments made by the Taxation Laws Amendment (Infrastructure Borrowings) Act 1997, no new applications can be made.

3 Subsection 93D(1)

Insert:

borrowings cut-off time means 12 pm, by legal time in the Australian Capital Territory, on 14 February 1997.

4 Subsection 93N(1)

Omit “A person”, substitute “Subject to subsection (7), a person”.

5 At the end of section 93N

Add:

New applications not to be made

(7) After the commencement of the Taxation Laws Amendment (Infrastructure Borrowings) Act 1997, a person is not entitled to apply to the DAA for a certificate under this Chapter.

Certain past applications ineffective

(8) If a person applied to the DAA for a certificate under this Chapter during the period from the borrowings cut-off time until the commencement of the Taxation Laws Amendment (Infrastructure Borrowings) Act 1997, the application has no effect, and is taken never to have had any effect.

6 Subsection 93O(1)

Omit “section 93P”, substitute “sections 93P and 93PA”.

7 Subsection 93P(1)

Omit “If”, substitute “Subject to subsection (4), if”.

8 At the end of section 93P

Add:

New advice not to be given

(4) After the commencement of the Taxation Laws Amendment (Infrastructure Borrowings) Act 1997, the DAA must not give advice to the applicant under subsection (1).

Certain past advice ineffective

(5) If the DAA gave advice to an applicant under subsection (1) during the period from the borrowings cut-off time until the commencement of the Taxation Laws Amendment (Infrastructure Borrowings) Act 1997, that advice has no effect, and is taken never to have had any effect.

9 After section 93P

Insert:

93PA Termination of certificate issue provisions

(1) After the commencement of the Taxation Laws Amendment (Infrastructure Borrowings) Act 1997, the DAA must not issue a certificate under this Chapter unless it gave written advice to the applicant for the certificate in accordance with subsection 93P(1) of this Act before the borrowings cut-off time.

(2) Any certificate issued by the DAA under this Chapter during the period from the borrowings cut-off time until the commencement of the Taxation Laws Amendment (Infrastructure Borrowings) Act 1997 has no effect, and is taken never to have had any effect, unless the DAA gave written advice to the applicant for the certificate in accordance with subsection 93P(1) of this Act before the borrowings cut-off time.

10 Subsection 93X(6)

Repeal the subsection.

11 Section 93Y

Repeal the section.

Part 2—Restriction on varying existing certificates

12 Section 93T

Omit “If”, substitute “Subject to section 93TA, if”.

13 After section 93T

Insert:

93TA Conditions not to be varied if total tax payable reduced

Request to Commissioner of Taxation

(1) If, after the commencement of the Taxation Laws Amendment (Infrastructure Borrowings) Act 1997, the DAA becomes satisfied as mentioned in section 93T of this Act in relation to an application to vary the conditions applying to a certificate, the DAA must request the Commissioner of Taxation in writing to make a determination in accordance with subsection (2).

Nature of determination

(2) After receiving the request, the Commissioner must determine whether or not, if the conditions are varied in accordance with the application, there is likely to be, as a result of the variation, a reduction in the sum of the present values (worked out when the Commissioner makes the determination) of all amounts of tax that have or may become payable, under Acts of which the Commissioner of Taxation has the general administration, by the persons whose liability to tax may be affected by the variation.

Information to Commissioner

(3) The DAA must give the Commissioner any information that the Commissioner requires for the purposes of making the determination.

Written advice of determination

(4) The Commissioner must advise the DAA and the applicant in writing of the Commissioner’s determination.

Conditions not to be varied unless reduction unlikely

(5) The DAA must not vary the conditions if the Commissioner’s determination is that there is likely to be a reduction of the kind mentioned in subsection (2).

Objections

(6) If the applicant is dissatisfied with the determination by the Commissioner, the applicant may object against it in the manner set out in Part IVC of the Taxation Administration Act 1953.

93TB Reconsideration of pre-commencement variations

Request to Commissioner

(1) If, during the period from the borrowings cut-off time until the commencement of the Taxation Laws Amendment (Infrastructure Borrowings) Act 1997, the DAA approved any variation of conditions applying to a certificate, the DAA must, as soon as practicable after the commencement of that Act, request the Commissioner of Taxation in writing to advise in accordance with subsection (2).

Commissioner to advise of determination

(2) After receiving the request, the Commissioner must advise the DAA and the person who applied for the variation, in writing, of the determination that the Commissioner would have made under subsection 93TA(2) (assuming that section 93TA had been in force at the time) if the DAA had requested the Commissioner to make a determination in relation to the variation of the conditions immediately before they were varied.

Application of subsections 93TA(3) and (6) etc.

(3) Subsections 93TA(3) and (6), and Part IVC of the Taxation Administration Act 1953, apply in the same way to the Commissioner’s advice as they do to a determination under subsection 93TA(2).

Effect of advice

(4) If the Commissioner advises that he or she would have determined that there was likely to be a reduction of the kind mentioned in subsection 93TA(2), the variation of the conditions has no effect, and is taken never to have had any effect.

Schedule 2—Amendment of the Income Tax Assessment Act 1936

1 After the heading to Division 16L of Part III

Insert:

Note: The issue of certificates that give rise to the tax concessions in this Division has been terminated for new cases by the Taxation Laws Amendment (Infrastructure Borrowings) Act 1997.

[Minister’s second reading speech made in—

House of Representatives on 26 March 1997

Senate on 30 May 1997]

(52/97)

I HEREBY CERTIFY that the above is a fair print of the Taxation Laws Amendment (Infrastructure Borrowings) Bill 1997 which originated in the House of Representatives and has been finally passed by the Senate and the House of Representatives.

Clerk of the House of Representatives

IN THE NAME OF HER MAJESTY, I assent to this Act.

Governor-General

1997

(52/97)

Overview

The Taxation Laws Amendment (Infrastructure Borrowings) Act 1997, enacted by the Parliament of Australia, was introduced to address the issue of infrastructure borrowings and associated tax incentives. This Act aimed to amend existing legislation to terminate the application of certain tax incentives and to impose restrictions on varying existing certificates related to infrastructure borrowings. The policy objective was to bring about a more regulated and controlled environment for infrastructure borrowings, ensuring that tax concessions were not unfairly extended or misused. The Act was designed to effectively close off new applications for these incentives and to prevent any future variations to existing certificates unless certain conditions were met, thereby aligning the tax laws with the broader economic and fiscal policy objectives of the government. The Act, which received Royal Assent on 30 June 1997, made specific amendments to the Development Allowance Authority Act 1992 and the Income Tax Assessment Act 1936. It introduced provisions to terminate the application of tax incentives for new cases, disallow new applications for certificates, and invalidate any advice or certificates issued after a specified cut-off time. Furthermore, it restricted the variation of existing certificates unless a determination by the Commissioner of Taxation confirmed that such variation would not lead to a reduction in tax liabilities. This legislative framework was crucial in ensuring that the tax system remained fair and effective, while also supporting the government's strategic infrastructure investment goals.

Scope and Application

The Taxation Laws Amendment (Infrastructure Borrowings) Act 1997 is a Commonwealth Act that amends existing tax laws, specifically targeting infrastructure borrowings and associated tax concessions. This Act applies to entities and individuals involved in infrastructure projects that have borrowed funds and are seeking tax incentives under the Development Allowance Authority Act 1992 and the Income Tax Assessment Act 1936. The Act's amendments take effect from the date of Royal Assent, which was on 30 June 1997. The Act terminates new applications for certain tax incentives related to infrastructure borrowings by prohibiting the Development Allowance Authority (DAA) from issuing new certificates or providing new advice after its commencement. It also nullifies any applications made and advice given during the period from the specified borrowings cut-off time until the Act's commencement. The Act extends its effect through amendments to the Development Allowance Authority Act 1992 and the Income Tax Assessment Act 1936, with Schedules detailing the specific changes to be made to these Acts. The Act's amendments are comprehensive and include both substantive changes and the repeal of certain subsections and sections to ensure the termination of specified tax incentives for new cases.

Key Provisions

The Taxation Laws Amendment (Infrastructure Borrowings) Act 1997 (C2004A05195) is a legislative instrument designed to amend existing laws concerning infrastructure borrowings. It primarily affects the Development Allowance Authority Act 1992 and the Income Tax Assessment Act 1936. The Act terminates certain incentives and provisions related to infrastructure borrowings, effectively ceasing new applications for certificates under the Development Allowance Authority Act 1992. It also stipulates that any applications made during a specified period, from the borrowings cut-off time until the Act's commencement, are rendered ineffective. Additionally, it prohibits the issuance of any new certificates unless the relevant advice was provided before the borrowings cut-off time. Under the Act, the Development Allowance Authority (DAA) is mandated to request the Commissioner of Taxation to determine whether varying the conditions of existing certificates would likely reduce the present values of future tax liabilities. If the Commissioner determines that such a reduction is likely, the DAA must not vary the conditions. For variations that occurred before the Act's commencement, the DAA must seek retrospective advice from the Commissioner. If the advice indicates a likely reduction in tax liabilities, the variation is deemed ineffective. The Act imposes specific obligations on the DAA, including the prohibition of new applications and the cessation of providing certain advice post-commencement. For variations made before the Act's commencement, the DAA must seek retrospective advice from the Commissioner of Taxation. Failure to adhere to these provisions could result in the nullification of applications and variations, with significant tax implications for the affected parties. The Act does not explicitly outline criminal or civil penalties for non-compliance within its provisions. However, the consequences of not following the stipulated requirements could include the invalidity of applications and variations, leading to potential tax liabilities or the loss of tax benefits that were initially intended. The specific financial or legal repercussions would depend on the broader tax laws and administrative procedures in place.

Area of Law: Taxation Law
Instrument: Act
Concepts: Commencement Provisions; Repeal & Amendment; Transitional Provisions; Offence Provisions; Compliance Obligations; Prohibited Conduct

Interactions

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

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