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This is a Bill, not an Act. For current law, see the Acts databases.
2016-2017
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Treasury Laws Amendment (2017
Enterprise Incentives No. 1) Bill 2017
No. , 2017
(Treasury)
A Bill for an Act to amend the law relating to
taxation, and for related purposes
No. , 2017
Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill
2017
i
Contents
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 1
3
Schedules ........................................................................................... 2
Schedule 1--Access to losses
3
Part 1--Companies
3
Income Tax Assessment Act 1997
3
Part 2--Listed widely held trusts
6
Income Tax Assessment Act 1936
6
Part 3--Consequential amendments
9
Income Tax Assessment Act 1936
9
Income Tax Assessment Act 1997
10
Schedule 2--Intangible asset depreciation
27
Income Tax Assessment Act 1997
27
No. , 2017
Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill
2017
1
A Bill for an Act to amend the law relating to
1
taxation, and for related purposes
2
The Parliament of Australia enacts:
3
1 Short title
4
This Act is the Treasury Laws Amendment (2017 Enterprise
5
Incentives No. 1) Act 2017.
6
2 Commencement
7
(1) Each provision of this Act specified in column 1 of the table
8
commences, or is taken to have commenced, in accordance with
9
column 2 of the table. Any other statement in column 2 has effect
10
according to its terms.
11
12
2
Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill
2017
No. , 2017
Commencement information
Column 1
Column 2
Column 3
Provisions
Commencement
Date/Details
1. The whole of
this Act
The first 1 January, 1 April, 1 July or
1 October to occur after the day this Act
receives the Royal Assent.
Note:
This table relates only to the provisions of this Act as originally
1
enacted. It will not be amended to deal with any later amendments of
2
this Act.
3
(2) Any information in column 3 of the table is not part of this Act.
4
Information may be inserted in this column, or information in it
5
may be edited, in any published version of this Act.
6
3 Schedules
7
Legislation that is specified in a Schedule to this Act is amended or
8
repealed as set out in the applicable items in the Schedule
9
concerned, and any other item in a Schedule to this Act has effect
10
according to its terms.
11
Access to losses Schedule 1
Companies Part 1
No. , 2017
Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill
2017
3
Schedule 1--Access to losses
1
Part 1--Companies
2
Income Tax Assessment Act 1997
3
1 Section 165-210 (heading)
4
Repeal the heading, substitute:
5
165-210 The business continuity test--carrying on the same business
6
2 Subsection 165-210(1)
7
Omit "same business test if throughout the
*
same business test period",
8
substitute "business continuity test if throughout the
*
business
9
continuity test period".
10
3 Subsection 165-210(2)
11
Omit "
*
same business test if, at any time during the
*
same business test
12
period,", substitute "
*
business continuity test under this section if, at
13
any time during the
*
business continuity test period,".
14
4 Subsection 165-210(3)
15
Omit "
*
same business test if", substitute "
*
business continuity test
16
under this section if".
17
5 Subsection 165-210(3)
18
Omit "
*
same business test period", substitute "
*
business continuity test
19
period".
20
6 Subsection 165-210(4)
21
Omit "
*
same business test is", substitute "
*
business continuity test
22
under this section is".
23
7 Subsection 165-210(4)
24
Omit "
*
same business test period", substitute "
*
business continuity test
25
period".
26
Schedule 1 Access to losses
Part 1 Companies
4
Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill
2017
No. , 2017
8 After section 165-210
1
Insert:
2
165-211 The business continuity test--carrying on a similar business
3
(1) A company also satisfies the business continuity test in relation to:
4
(a) a
*
tax loss for an income year starting on or after 1 July 2015;
5
or
6
(b) taxable income for an income year starting on or after 1 July
7
2015; or
8
(c) a
*
net capital loss for an income year starting on or after
9
1 July 2015; or
10
(d) a debt, incurred in an income year starting on or after 1 July
11
2015, that the company writes off as bad;
12
if throughout the
*
business continuity test period it carries on a
13
business (its current business) that is similar to the
*
business it
14
carried on immediately before the
*
test time (its former business).
15
(2) Without limiting the matters that may be taken into account in
16
ascertaining whether the company's current business is similar to
17
its former business, the following must be taken into account:
18
(a) the extent to which the assets (including goodwill) that are
19
used in its current business to generate assessable income
20
throughout the
*
business continuity test period were also used
21
in its former business to generate assessable income;
22
(b) the extent to which the activities and operations from which
23
its current business generated assessable income throughout
24
the business continuity test period were also the activities and
25
operations from which its former business generated
26
assessable income;
27
(c) the identity of its current business and the identity of its
28
former business;
29
(d) the extent to which any changes to its former business result
30
from development or commercialisation of assets, products,
31
processes, services or marketing or organisational methods of
32
the former business.
33
(3) However, the company does not satisfy the
*
business continuity
34
test under this section if, before the
*
test time, it:
35
Access to losses Schedule 1
Companies Part 1
No. , 2017
Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill
2017
5
(a) started to carry on a
*
business it had not previously carried
1
on; or
2
(b) in the course of its business operations, entered into a
3
transaction of a kind that it had not previously entered into;
4
and did so for the purpose, or for purposes including the purpose,
5
of being taken to have carried on throughout the
*
business
6
continuity test period a business that is similar to the business it
7
carried on immediately before the test time.
8
9 Paragraph 175-5(2)(b)
9
Repeal the paragraph, substitute:
10
(b) meets the condition in section 165-13 in respect of the
11
income year by satisfying the
*
business continuity test under
12
section 165-210.
13
10 Paragraph 175-40(2)(b)
14
Repeal the paragraph, substitute:
15
(b) would meet the condition in section 165-13 in respect of the
16
income year by satisfying the
*
business continuity test under
17
section 165-210.
18
11 Paragraph 175-80(2)(b)
19
Repeal the paragraph, substitute:
20
(b) meets the condition in section 165-126 by satisfying the
21
*
business continuity test under section 165-210.
22
12 After subsection 707-140(1)
23
Insert:
24
(1A) However, subsection (1) does not affect the operation of
25
paragraph 165-211(1)(a) or (c).
26
Note:
This subsection ensures that the head company can only apply the
27
version of the business continuity test in section 165-211 if the loss of
28
the joining entity was incurred on or after 1 July 2015.
29
13 Application of amendments
30
The amendments made by this Part apply in relation to income years
31
starting on or after 1 July 2015.
32
Schedule 1 Access to losses
Part 2 Listed widely held trusts
6
Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill
2017
No. , 2017
Part 2--Listed widely held trusts
1
Income Tax Assessment Act 1936
2
14 Section 269-100 (heading) in Schedule 2F
3
Repeal the heading, substitute:
4
269-100 Passing the business continuity test
5
15 Subsection 269-100(1) in Schedule 2F
6
Omit "passes the same business test during a period (the same business
7
test period)", substitute "passes the business continuity test during a
8
period (the business continuity test period)".
9
16 Subsection 269-100(1) in Schedule 2F
10
Omit "same business test period", substitute "business continuity test
11
period".
12
17 Subsection 269-100(3) in Schedule 2F
13
Omit "the same business test if, at any time during the same business
14
test period,", substitute "the business continuity test under this section
15
if, at any time during the business continuity test period,".
16
18 Subsection 269-100(4) in Schedule 2F
17
Omit "pass the same business test", substitute "pass the business
18
continuity test under this section".
19
19 Subsection 269-100(4) in Schedule 2F
20
Omit "same business test period", substitute "business continuity test
21
period".
22
20 Subsection 269-100(5) in Schedule 2F
23
Omit "the test if, at any time during the same business test period,",
24
substitute "the business continuity test under this section if, at any time
25
during the business continuity test period,".
26
Access to losses Schedule 1
Listed widely held trusts Part 2
No. , 2017
Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill
2017
7
21 At the end of Subdivision 269-F in Schedule 2F
1
Add:
2
269-105 Modified test for income years starting on or after 1 July
3
2015
4
Cases in which businesses need only be similar
5
(1) A listed widely held trust also passes the business continuity test
6
during a period (the business continuity test period) in relation to a
7
time (the test time) and in relation to:
8
(a) a tax loss for a loss year starting on or after 1 July 2015; or
9
(b) net income for an income year starting on or after 1 July
10
2015; or
11
(c) a debt, incurred in an income year starting on or after 1 July
12
2015, that the trust writes off as bad; or
13
(d) a debt, incurred in an income year starting on or after 1 July
14
2015, in relation to which a debt/equity swap (within the
15
meaning of section 63E) occurs;
16
if throughout the business continuity test period it carries on a
17
business (its current business) that is similar to the business it
18
carried on immediately before the test time (its former business).
19
Relevance of being a trust
20
(2) The mere fact of being a trust does not mean that the trust cannot
21
carry on a business.
22
Matters to be considered
23
(3) Without limiting the matters that may be taken into account in
24
ascertaining whether the trust's current business is similar to its
25
former business, the following must be taken into account:
26
(a) the extent to which the assets (including goodwill) that are
27
used in its current business to generate assessable income
28
throughout the business continuity test period were also used
29
in its former business to generate assessable income;
30
(b) the extent to which the activities and operations from which
31
its current business generated assessable income throughout
32
the business continuity test period were also the activities and
33
Schedule 1 Access to losses
Part 2 Listed widely held trusts
8
Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill
2017
No. , 2017
operations from which its former business generated
1
assessable income;
2
(c) the identity of its current business and the identity of its
3
former business;
4
(d) the extent to which any changes to its former business result
5
from development or commercialisation of assets, products,
6
processes, services or marketing or organisational methods of
7
the former business.
8
Exception
9
(4) However, the trust does not pass the business continuity test under
10
this section if, before the test time, it:
11
(a) began to carry on a business it had not previously carried on;
12
or
13
(b) in the course of its business operations, entered into a
14
transaction of a kind that it had not previously entered into;
15
and did so for the purpose, or for purposes including the purpose,
16
of being taken to have carried on throughout the business
17
continuity test period a business that is similar to the business it
18
carried on immediately before the test time.
19
22 Application of amendments
20
The amendments made by this Part apply in relation to income years
21
starting on or after 1 July 2015.
22
Access to losses Schedule 1
Consequential amendments Part 3
No. , 2017
Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill
2017
9
Part 3--Consequential amendments
1
Income Tax Assessment Act 1936
2
23 Section 266-125 (heading) in Schedule 2F
3
Repeal the heading, substitute:
4
266-125 There must be no abnormal trading (subject to 50% stake
5
or business continuity exceptions)
6
24 Paragraph 266-125(2)(b) in Schedule 2F
7
Omit "same business test", substitute "business continuity test".
8
25 Subsection 266-125(2) in Schedule 2F (second note)
9
Omit "same business test", substitute "business continuity test".
10
26 Paragraphs 266-135(2)(b) and (c) in Schedule 2F
11
Omit "same business test", substitute "business continuity test".
12
27 Subsection 266-135(3) in Schedule 2F
13
Omit "same business test", substitute "business continuity test".
14
28 Paragraph 268-20(4)(b) in Schedule 2F
15
Omit "same business test", substitute "business continuity test".
16
29 Section 269-5 in Schedule 2F
17
Omit "same business test", substitute "business continuity test".
18
30 Subdivision 269-F (heading) in Schedule 2F
19
Repeal the heading, substitute:
20
Subdivision 269-F--Business continuity test
21
31 Subsection 272-140(1) in Schedule 2F
22
Insert:
23
Schedule 1 Access to losses
Part 3 Consequential amendments
10
Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill
2017
No. , 2017
pass the business continuity test has the meaning given by
1
Subdivision 269-F.
2
32 Subsection 272-140(1) (definition of pass the same
3
business test) in Schedule 2F
4
Repeal the definition.
5
Income Tax Assessment Act 1997
6
33 Subsection 4-15(2) (table item 1)
7
Omit "same business test", substitute "business continuity test".
8
34 Subsection 25-35(5) (table item 1)
9
Omit "same business test", substitute "business continuity test".
10
35 Section 36-25 (table relating to tax losses of companies,
11
table items 1 and 2)
12
Omit "same business test", substitute "business continuity test".
13
36 Section 102-30 (table items 4 and 5)
14
Omit "same business test", substitute "business continuity test".
15
37 Section 165-5
16
Omit:
17
(b)
it satisfies the same business test by carrying on
18
the same business, entering into no new kinds of
19
transactions and conducting no new kinds of
20
business.
21
substitute:
22
(b)
it satisfies the business continuity test by carrying
23
on the same business (including entering into no
24
new kinds of transactions and conducting no new
25
kinds of business), or by carrying on a similar
26
business (on or after 1 July 2015).
27
Access to losses Schedule 1
Consequential amendments Part 3
No. , 2017
Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill
2017
11
38 Paragraph 165-10(b)
1
Omit "same business test", substitute "business continuity test".
2
39 Section 165-13 (heading)
3
Repeal the heading, substitute:
4
165-13 Alternatively, the company must satisfy the business
5
continuity test
6
40 Subsection 165-13(2)
7
Omit "
*
same business test for the income year (the same business test
8
period)", substitute "
*
business continuity test for the income year (the
9
business continuity test period)".
10
41 Subsection 165-13(2) (note)
11
Omit "same business test", substitute "business continuity test".
12
42 Section 165-15 (heading)
13
Repeal the heading, substitute:
14
165-15 The same people must control the voting power, or the
15
company must satisfy the business continuity test
16
43 Subsection 165-15(2)
17
Omit "
*
same business test for the income year (the same business test
18
period)", substitute "
*
business continuity test for the income year (the
19
business continuity test period)".
20
44 Subsection 165-15(3)
21
Omit "
*
same business test", substitute "
*
business continuity test".
22
45 Subsection 165-15(3) (note)
23
Omit "same business test", substitute "business continuity test".
24
46 Section 165-23
25
Omit "same business test", substitute "business continuity test".
26
Schedule 1 Access to losses
Part 3 Consequential amendments
12
Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill
2017
No. , 2017
47 Section 165-30
1
Repeal the section, substitute:
2
165-30 Flow chart showing the application of this Subdivision
3
4
5
Did the company experience a
change in beneficial ownership or
a change in the control of its
voting power during the income
year?
Did the company satisfy the
business continuity test during the
rest of the income year?
Did the company incur a notional
loss in a period of the income year
before or after the change in
beneficial ownership or control?
This Subdivision applies:
1. Calculate the taxable income under section 165-65, excluding
the notional loss incurred in any period.
2. Calculate the tax loss under section 165-70, taking into account
each notional loss.
yes
yes
no
This
Subdivision
does not apply.
Work out the
company's
taxable
income under
section 4-15.
no
no
yes
Access to losses Schedule 1
Consequential amendments Part 3
No. , 2017
Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill
2017
13
Note:
If the company was a partner during the income year, special rules
1
apply to calculating a notional loss or notional taxable income.
2
48 Section 165-35 (heading)
3
Repeal the heading, substitute:
4
165-35 On a change of ownership, unless the company satisfies the
5
business continuity test
6
49 Paragraph 165-35(b)
7
Omit "
*
same business test for the rest of the income year (the same
8
business test period)", substitute "
*
business continuity test for the rest
9
of the income year (the business continuity test period)".
10
50 Section 165-35
11
Omit "apply the
*
same business test", substitute "apply the business
12
continuity test".
13
51 Section 165-35 (note 1)
14
Omit "same business test", substitute "business continuity test".
15
52 Section 165-40 (heading)
16
Repeal the heading, substitute:
17
165-40 On a change of control of the voting power in the company,
18
unless the company satisfies the business continuity test
19
53 Subsection 165-40(2)
20
Omit "
*
same business test for the rest of the income year (the same
21
business test period)", substitute "
*
business continuity test for the rest
22
of the income year (the business continuity test period)".
23
54 Subsection 165-40(3)
24
Omit "
*
same business test", substitute "
*
business continuity test".
25
55 Subsection 165-40(3) (note)
26
Omit "same business test", substitute "business continuity test".
27
Schedule 1 Access to losses
Part 3 Consequential amendments
14
Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill
2017
No. , 2017
56 Subsection 165-45(4)
1
Omit "
*
same business test for all of them, considered as a single period
2
(the same business test period). Apply the same business test",
3
substitute "
*
business continuity test for all of them, considered as a
4
single period (the business continuity test period). Apply the business
5
continuity test".
6
57 Subsection 165-45(4) (note 1)
7
Omit "same business test", substitute "business continuity test".
8
58 Section 165-93
9
Omit:
10
(b)
it satisfies the same business test by carrying on
11
the same business, entering into no new kinds of
12
transactions and conducting no new kinds of
13
business.
14
substitute:
15
(b)
it satisfies the business continuity test by carrying
16
on the same business (including entering into no
17
new kinds of transactions and conducting no new
18
kinds of business), or by carrying on a similar
19
business (on or after 1 July 2015).
20
59 Section 165-99
21
Omit "same business test", substitute "business continuity test".
22
60 Section 165-102 (heading)
23
Repeal the heading, substitute:
24
165-102 On a change of ownership, or of control of voting power,
25
unless the company satisfies the business continuity test
26
61 Section 165-115
27
Omit "same business test", substitute "business continuity test".
28
Access to losses Schedule 1
Consequential amendments Part 3
No. , 2017
Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill
2017
15
62 Paragraph 165-115AA(3)(b)
1
Omit "same business test", substitute "business continuity test".
2
63 Subsection 165-115B(4) (heading)
3
Repeal the heading, substitute:
4
Need to meet business continuity test
5
64 Subsection 165-115B(4)
6
Omit "same business test", substitute "business continuity test".
7
65 Subsection 165-115BA(4) (heading)
8
Repeal the heading, substitute:
9
No increase in assessable income if company satisfies the business
10
continuity test
11
66 Subsection 165-115BA(4)
12
Omit "same business test", substitute "business continuity test".
13
67 Subsection 165-115BA(5) (heading)
14
Repeal the heading, substitute:
15
Assumptions for purposes of business continuity test
16
68 Paragraph 165-115BA(5)(d)
17
Omit "same business test period", substitute "
*
business continuity test
18
period".
19
69 Section 165-117
20
Omit "same business test by carrying on the same business, entering
21
into no new kinds of transactions and conducting no new kinds of
22
business", substitute "business continuity test by carrying on the same
23
business (including entering into no new kinds of transactions and
24
conducting no new kinds of business), or by carrying on a similar
25
business (on or after 1 July 2015)".
26
Schedule 1 Access to losses
Part 3 Consequential amendments
16
Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill
2017
No. , 2017
70 Paragraph 165-120(1)(c)
1
Omit "same business test", substitute "business continuity test".
2
71 Section 165-126 (heading)
3
Repeal the heading, substitute:
4
165-126 Alternatively, the company must satisfy the business
5
continuity test
6
72 Subsection 165-126(2)
7
Omit "
*
same business test for the
*
second continuity period (the same
8
business test period)", substitute "
*
business continuity test for the
9
*
second continuity period (the business continuity test period)".
10
73 Subsection 165-126(2) (note)
11
Omit "same business test", substitute "business continuity test".
12
74 Section 165-129 (heading)
13
Repeal the heading, substitute:
14
165-129 Same people must control the voting power, or the company
15
must satisfy the business continuity test
16
75 Subsection 165-129(2)
17
Omit "
*
same business test for the
*
second continuity period (the same
18
business test period)", substitute "
*
business continuity test for the
19
*
second continuity period (the business continuity test period)".
20
76 Subsection 165-129(3)
21
Omit "
*
same business test", substitute "
*
business continuity test".
22
77 Subsection 165-129(3) (note)
23
Omit "same business test", substitute "business continuity test".
24
78 Paragraph 165-132(1)(b)
25
Omit "same business test", substitute "business continuity test".
26
Access to losses Schedule 1
Consequential amendments Part 3
No. , 2017
Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill
2017
17
79 Subsection 165-132(1)
1
Omit "
*
same business test for the later income year (the same business
2
test period)", substitute "
*
business continuity test for the later income
3
year (the business continuity test period)".
4
80 Subsection 165-132(2) (note)
5
Omit "same business test", substitute "business continuity test".
6
81 Subdivision 165-E (heading)
7
Repeal the heading, substitute:
8
Subdivision 165-E--Business continuity test
9
82 Subsections 165-212D(1) and (2)
10
Omit "
*
same business test", substitute "
*
business continuity test".
11
83 Section 165-212E (heading)
12
Repeal the heading, substitute:
13
165-212E Entry history rule does not apply for the purposes of
14
sections 165-210 and 165-211
15
84 Section 165-212E
16
Omit "section 165-210", substitute "sections 165-210 and 165-211".
17
85 Subsection 166-5(5) (heading)
18
Repeal the heading, substitute:
19
Satisfies the business continuity test
20
86 Subsection 166-5(5)
21
Omit "
*
same business test for the income year (the same business test
22
period)", substitute "
*
business continuity test for the income year (the
23
business continuity test period)".
24
87 Subsection 166-5(5) (note 1)
25
Omit "same business test", substitute "business continuity test".
26
Schedule 1 Access to losses
Part 3 Consequential amendments
18
Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill
2017
No. , 2017
88 Subsection 166-5(6)
1
Omit "
*
same business test", substitute "
*
business continuity test".
2
89 Subsection 166-20(4) (heading)
3
Repeal the heading, substitute:
4
Satisfies the business continuity test
5
90 Subsection 166-20(4)
6
Omit "
*
same business test for the rest of the income year (the same
7
business test period)", substitute "
*
business continuity test for the rest
8
of the income year (the business continuity test period)".
9
91 Subsection 166-20(4) (note 1)
10
Omit "same business test", substitute "business continuity test".
11
92 Subsection 166-20(5)
12
Omit "
*
same business test", substitute "
*
business continuity test".
13
93 Subsection 166-40(5) (heading)
14
Repeal the heading, substitute:
15
Satisfies the business continuity test
16
94 Subsection 166-40(5)
17
Omit "
*
same business test for the
*
second continuity period (the same
18
business test period)", substitute "
*
business continuity test for the
19
*
second continuity period (the business continuity test period)".
20
95 Subsection 166-40(5) (note 1)
21
Omit "same business test", substitute "business continuity test".
22
96 Subsection 166-40(6)
23
Omit "
*
same business test", substitute "
*
business continuity test".
24
97 Subsection 175-80(2)
25
After "if", insert "the company".
26
Access to losses Schedule 1
Consequential amendments Part 3
No. , 2017
Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill
2017
19
98 Paragraph 175-80(2)(a)
1
Omit "the company".
2
99 Subsection 415-35(4)
3
Omit "
*
same business test period", substitute "
*
business continuity test
4
period".
5
100 Subsection 415-35(4)
6
Omit "same business test period would", substitute "business continuity
7
test period would".
8
101 Subsection 415-40(4)
9
Omit "
*
same business test period", substitute "
*
business continuity test
10
period".
11
102 Subsection 415-40(4)
12
Omit "same business test period would", substitute "business continuity
13
test period would".
14
103 Section 701-5 (note 3)
15
Omit "same business test", substitute "business continuity test".
16
104 Subsection 707-120(3)
17
Repeal the subsection, substitute:
18
Business continuity test involving trial year
19
(3) When working out whether the joining entity carried on,
20
throughout the
*
trial year (or a period including the trial year):
21
(a) the same business as the business it carried on at a particular
22
time; or
23
(b) a similar business to the business it carried on at that time;
24
assume that the entity carried on at and just after the joining time
25
the same business that it carried on just before the joining time.
26
105 Section 707-125 (heading)
27
Repeal the heading, substitute:
28
Schedule 1 Access to losses
Part 3 Consequential amendments
20
Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill
2017
No. , 2017
707-125 Modified business continuity test for companies' post-1999
1
losses
2
106 Subsection 707-125(2)
3
Omit "
*
same business test", substitute "
*
business continuity test".
4
107 Paragraph 707-125(2)(a)
5
Omit "same business test period", substitute "business continuity test
6
period".
7
108 Paragraph 707-125(3)(a)
8
Omit "(the same business test period) for the
*
same business test",
9
substitute "(the business continuity test period) for the
*
business
10
continuity test".
11
109 Paragraph 707-125(3)(b)
12
Omit "same business test", substitute "business continuity test".
13
110 Paragraph 707-125(4)(a)
14
Omit "
*
same business test for the period (the same business test
15
period)", substitute "
*
business continuity test for the period (the
16
business continuity test period)".
17
111 Paragraph 707-125(4)(b)
18
Omit "same business test", substitute "business continuity test".
19
112 Section 707-135 (heading)
20
Repeal the heading, substitute:
21
707-135 Transferring loss transferred to joining entity because
22
business continuity test was satisfied
23
113 Subsection 707-135(1)
24
Repeal the subsection, substitute:
25
(1) This section operates if the loss had been transferred to the joining
26
entity (by a previous operation of this Subdivision) because the
27
Access to losses Schedule 1
Consequential amendments Part 3
No. , 2017
Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill
2017
21
entity from which the loss was transferred carried on during a
1
particular period:
2
(a) the same business as it carried on at a particular time; or
3
(b) if section 165-211 applies in relation to the loss--a business
4
similar to the business it carried on at a particular time.
5
Note:
Section 165-211 enables an entity to satisfy the business continuity
6
test by carrying on a similar business.
7
114 Subsection 707-135(2)
8
Omit "
*
same business test", substitute "
*
business continuity test".
9
115 Paragraph 707-135(2)(a)
10
Omit "same business test period", substitute "business continuity test
11
period".
12
116 Subsection 707-210(6) (heading)
13
Repeal the heading, substitute:
14
Business continuity test applying to latest transferee under
15
Division 166
16
117 Subsection 707-210(6)
17
Omit "
*
same business test", substitute "
*
business continuity test".
18
118 Paragraph 707-400(1)(a)
19
Omit "
*
same business test", substitute "
*
business continuity test".
20
119 Paragraph 707-400(1)(b)
21
Omit "same business test period", substitute "business continuity test
22
period".
23
120 Subsection 707-400(1)
24
Omit "same business test period", substitute "business continuity test
25
period".
26
121 Subsection 707-400(1)
27
Omit "same business test" (last occurring), substitute "business
28
continuity test".
29
Schedule 1 Access to losses
Part 3 Consequential amendments
22
Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill
2017
No. , 2017
122 Subsection 709-215(6) (heading)
1
Repeal the heading, substitute:
2
Test time for business continuity test under section 165-126
3
123 Paragraph 715-15(1)(a)
4
Omit "
*
same business test", substitute "
*
business continuity test".
5
124 Paragraph 715-15(1)(b)
6
Omit "same business test", substitute "business continuity test".
7
125 Subparagraph 715-15(1)(c)(iii)
8
Omit "same business test", substitute "business continuity test".
9
126 Paragraph 715-15(1)(d)
10
Omit "same business test", substitute "business continuity test".
11
127 Section 715-50 (heading)
12
Repeal the heading, substitute:
13
715-50 Step 1 amount is reduced if membership interest in
14
subsidiary member is 165-CC tagged asset and business
15
continuity test is failed
16
128 Paragraph 715-50(1)(d)
17
Omit "
*
same business test", substitute "
*
business continuity test".
18
129 Subparagraph 715-50(1)(d)(i)
19
Omit "same business test period", substitute "business continuity test
20
period".
21
130 Section 715-55 (heading)
22
Repeal the heading, substitute:
23
Access to losses Schedule 1
Consequential amendments Part 3
No. , 2017
Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill
2017
23
715-55 Step 2 amount is affected if liability of subsidiary member is
1
165-CC tagged asset of another group member and
2
business continuity test is failed
3
131 Paragraph 715-55(1)(d)
4
Omit "
*
same business test", substitute "
*
business continuity test".
5
132 Subparagraph 715-55(1)(d)(i)
6
Omit "same business test period", substitute "business continuity test
7
period".
8
133 Paragraph 715-60(1)(d)
9
Omit "
*
same business test", substitute "
*
business continuity test".
10
134 Subparagraph 715-60(1)(d)(i)
11
Omit "same business test period", substitute "business continuity test
12
period".
13
135 Paragraph 715-70(2)(c)
14
Omit "
*
same business test", substitute "
*
business continuity test".
15
136 Subparagraph 715-70(2)(c)(i)
16
Omit "same business test period", substitute "business continuity test
17
period".
18
137 Section 715-90 (heading)
19
Repeal the heading, substitute:
20
715-90 How business continuity test applies if leaving time is
21
changeover time for leaving company
22
138 Subsection 715-90(2) (note)
23
Omit "same business test", substitute "business continuity test".
24
139 Subsection 715-95(3)
25
Omit "
*
same business test", substitute "
*
business continuity test".
26
Schedule 1 Access to losses
Part 3 Consequential amendments
24
Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill
2017
No. , 2017
140 Paragraph 715-95(3)(a)
1
Omit "same business test period", substitute "business continuity test
2
period".
3
141 Paragraph 715-355(3)(c)
4
Omit "
*
same business test", substitute "
*
business continuity test".
5
142 Subparagraph 715-355(3)(c)(i)
6
Omit "same business test period", substitute "business continuity test
7
period".
8
143 Paragraph 715-360(3)(c)
9
Omit "
*
same business test", substitute "
*
business continuity test".
10
144 Subparagraph 715-360(3)(c)(i)
11
Omit "same business test period", substitute "business continuity test
12
period".
13
145 Subsection 719-260(2) (note)
14
Omit "same business test", substitute "business continuity test".
15
146 Subsection 719-260(3) (heading)
16
Repeal the heading, substitute:
17
Business continuity test for focal company under Division 166
18
147 Subsection 719-260(3)
19
Omit "
*
same business test", substitute "
*
business continuity test".
20
148 Subsection 719-260(4) (heading)
21
Repeal the heading, substitute:
22
Business continuity test for focal company to transfer loss
23
149 Subsection 719-260(4) (note)
24
Omit "same business test period", substitute "business continuity test
25
period".
26
Access to losses Schedule 1
Consequential amendments Part 3
No. , 2017
Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill
2017
25
150 Subsection 719-265(3) (heading)
1
Repeal the heading, substitute:
2
Loss transferred because business continuity test satisfied
3
151 Subsection 719-265(3)
4
Omit "
*
same business test for", substitute "
*
business continuity test
5
for".
6
152 Paragraph 719-265(3)(a)
7
Omit "
*
same business test period", substitute "
*
business continuity test
8
period".
9
153 Group heading before section 719-285
10
Repeal the heading, substitute:
11
Business continuity test and change of head company
12
154 Section 719-285 (heading)
13
Repeal the heading, substitute:
14
719-285 Business continuity test and change of head company
15
155 Section 719-285
16
Omit "
*
same business test", substitute "
*
business continuity test".
17
156 Section 719-285 (note 1)
18
Omit "same business test", substitute "business continuity test".
19
157 Subsection 719-455(3) (notes 1 and 2)
20
Omit "same business test", substitute "business continuity test".
21
158 Subsection 719-455(4) (heading)
22
Repeal the heading, substitute:
23
Schedule 1 Access to losses
Part 3 Consequential amendments
26
Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill
2017
No. , 2017
Business continuity test for head company under Division 166
1
159 Subsection 719-455(4)
2
Omit "
*
same business test", substitute "
*
business continuity test to".
3
160 Subsection 995-1(1)
4
Insert:
5
business continuity test has the meaning given by
6
Subdivision 165-E.
7
business continuity test period has the meaning given by
8
sections 165-13, 165-15, 165-35, 165-40, 165-45, 165-126,
9
165-129, 165-132, 166-5, 166-20, 166-40, 707-125, 707-135,
10
715-50, 715-55, 715-60, 715-70, 715-95, 715-355 and 715-360,
11
and affected by sections 415-35, 415-40 and 707-400.
12
161 Subsection 995-1(1)
13
Repeal the following definitions:
14
(a) definition of same business test;
15
(b) definition of same business test period.
16
162 Subsection 995-1(1) (definition of test time)
17
Omit "
*
same business test", substitute "
*
business continuity test".
18
163 Subsection 995-1(1) (definition of trading stock loss)
19
Omit "165-115A(1B)", substitute "165-115A(1D)".
20
164 Application of amendments
21
The amendments made by this Part apply in relation to income years
22
starting on or after 1 July 2015.
23
Intangible asset depreciation Schedule 2
No. , 2017
Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill
2017
27
Schedule 2--Intangible asset depreciation
1
2
Income Tax Assessment Act 1997
3
1 Paragraph 40-75(5)(a)
4
After "is", insert "of a kind".
5
2 Paragraph 40-75(5)(b)
6
Omit "asset.", substitute "asset; and".
7
3 After paragraph 40-75(5)(b)
8
Insert:
9
(c) has as its
*
effective life the period applicable to the asset
10
under that item.
11
4 Subsection 40-75(5)
12
Omit "you acquire the asset", substitute "you start to
*
hold the asset".
13
5 Subsection 40-75(6)
14
Repeal the subsection, substitute:
15
(6) The adjustment is to use, instead of the asset's
*
effective life, the
16
period remaining in that effective life as at the time you start to
17
*
hold the asset.
18
Note:
The asset's effective life is the period described in paragraph (5)(c).
19
6 Subsection 40-95(6)
20
Omit "However, you must use an
*
effective life determined by the
21
Commissioner", substitute "Despite subsection (5), (5B) or (5C), you
22
must use the
*
effective life referred to in subsection (6A)".
23
7 After subsection 40-95(6)
24
Insert:
25
(6A) For the purposes of subsection (6), the asset's
*
effective life:
26
(a) unless paragraph (b) of this subsection applies--is
27
determined by the Commissioner; or
28
Schedule 2 Intangible asset depreciation
28
Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill
2017
No. , 2017
(b) if the asset is an intangible
*
depreciating asset of a kind
1
mentioned in an item of the table in subsection (7)--is the
2
period applicable to the asset under that item.
3
8 Subsection 40-95(7)
4
Omit all the words before the table, substitute:
5
Exception: intangible depreciating assets
6
(7) The effective life of an intangible
*
depreciating asset of a kind
7
mentioned in an item of this table is the period applicable to the
8
asset under that item unless:
9
(a) you start to
*
hold the asset on or after 1 July 2016; and
10
(b) you choose to work out the effective life of the asset yourself
11
under section 40-105.
12
9 After subsection 40-95(7)
13
Insert:
14
(7A) If you wish to make the choice referred to in paragraph (7)(b), you
15
must do so for the income year in which the asset's
*
start time
16
occurs.
17
Note:
For rules about choices, see section 40-130.
18
(7B) To avoid doubt:
19
(a) subsection (7) does not apply to an intangible
*
depreciating
20
asset to which subsection (4) applies; and
21
(b) except as described in paragraph (6A)(b), subsection (7) does
22
not apply to an intangible depreciating asset to which
23
subsection (5) applies.
24
10 Paragraph 40-105(4)(a)
25
Repeal the paragraph, substitute:
26
(a) an asset of a kind mentioned in an item of the table in
27
subsection 40-95(7) if the asset's
*
effective life:
28
(i) is the period applicable to the asset under that item; and
29
(ii) is not being recalculated under section 40-110;
30
Intangible asset depreciation Schedule 2
No. , 2017
Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill
2017
29
11 Subparagraph 40-110(2)(a)(iii)
1
Omit "and", substitute "or".
2
12 At the end of paragraph 40-110(2)(a)
3
Add:
4
(iv) are using an effective life applicable to the asset under
5
an item of the table in subsection 40-95(7) (or the period
6
remaining in that effective life, as provided for under
7
subsection 40-75(6)); and
8
13 Subsection 40-110(5)
9
Repeal the subsection, substitute:
10
Exception: intangibles that you start to hold before 1 July 2016
11
(5) This section does not apply to an intangible
*
depreciating asset, of
12
a kind mentioned in an item of the table in subsection 40-95(7),
13
which you start to
*
hold before 1 July 2016.
14
14 Paragraph 701-55(2)(d)
15
Omit "--either".
16
15 After subparagraph 701-55(2)(d)(i)
17
Insert:
18
(ia) the head company were able to choose at that time an
19
effective life for the asset in accordance with
20
subsections 40-95(7) and (7A); or
21
16 Subparagraph 701-55(2)(d)(ii)
22
Omit "(7),".
23
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