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This is a Bill, not an Act. For current law, see the Acts databases.
2002
The Parliament of
the
Commonwealth of
Australia
HOUSE OF
REPRESENTATIVES
Presented and read a first
time
Taxation
Laws Amendment Bill (No. 1) 2002
No.
, 2002
(Treasury)
A
Bill for an Act to amend the law relating to taxation, and for related
purposes
Contents
Part 1—Prepayments 3
Income Tax Assessment Act
1936 3
Income Tax Assessment Act
1997 4
Part 2—Non-commercial
losses 6
Income Tax Assessment Act
1997 6
Part 3—Years after year including 21 September
2002 7
Income Tax Assessment Act
1936 7
Part 4—Application of
amendments 8
A Bill for an Act to amend the law relating to taxation,
and for related purposes
The Parliament of Australia enacts:
This Act may be cited as the Taxation Laws Amendment Act (No. 1)
2002.
This Act commences on the day on which it receives the Royal
Assent.
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repealed as set out in the applicable items in the Schedule concerned, and any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.
Income Tax Assessment Act
1936
1 After section 82KZMF
Insert:
(1) Sections 82KZMB, 82KZMD and 82KZMF do not affect the timing of a
deduction for expenditure incurred by a taxpayer in a year of income (the
expenditure year) to the extent that the requirements of this
section are met.
General requirements for expenditure
(2) There are these requirements for the expenditure:
(a) it must be incurred on or after 2 October 2001 under an
agreement; and
(b) the eligible service period for the expenditure must be 12 months or
shorter and must end on or before the last day of the year of income after the
expenditure year; and
(c) it must be incurred in return for the doing of a thing under the
agreement that is not to be wholly done within the expenditure year.
Requirements for agreement
(3) There are these requirements for the agreement:
(a) the agreement must be for planting and tending trees for felling;
and
(b) the taxpayer must not have day to day control over the operation of
the agreement (whether or not the taxpayer has the right to be consulted or give
directions); and
(c) at least one of these must be satisfied:
(i) there is more than one participant in the agreement in the same
capacity as the taxpayer;
(ii) the person (the manager) who manages, arranges or
promotes the agreement, or an associate of that person, manages, arranges or
promotes similar agreements for other taxpayers.
Requirements for expenditure
(4) The expenditure incurred by the taxpayer must be paid for seasonally
dependent agronomic activities undertaken by the manager during the
establishment period for the relevant planting of trees for felling.
Example: Examples of seasonally dependent agronomic
activities include:
• tending the seedlings prior to planting, and
planting them;
• ripping and mounding the site where the planting is
to occur;
• applying fertiliser, herbicide or pesticide in
conjunction with the planting.
(5) The establishment period for a particular planting of
trees starts on the day when the first seasonally dependent agronomic activity
for that planting is done and ends on the later of:
(a) the day when the last seedling is planted as part of that planting,
not including replacement of seedlings already planted; and
(b) the day when any fertiliser, herbicide or pesticide is applied to the
seedlings in conjunction with that planting.
Income Tax Assessment Act
1997
2 Section 10-5 (after table item headed
“foreign investment funds (FIFs)”)
Insert:
|
forestry agreement |
|
|
|
amount where section 82KZMG of the 1936 Act applies |
15-45 |
|
3 At the end of
Division 15
Add:
(1) Your assessable income includes an amount you receive under an
agreement for the planting and tending of trees for felling if:
(a) you are the manager of the agreement as mentioned in
section 82KZMG of the Income Tax Assessment Act 1936; and
(b) the amount satisfies, for the entity that paid it, the requirements of
that section.
The amount is included for the income year in which the entity can claim a
deduction for the amount.
(2) No part of an amount included under subsection (1) is included in
your assessable income for a later income year.
4 Transitional
(1) Section 15-45 of the Income Tax Assessment Act
1997 may apply differently for the manager of an agreement mentioned in
section 82KZMG of the Income Tax Assessment Act 1936 if an entity
can first claim a deduction in accordance with section 82KZMG for the
2001-02 or 2002-03 income year for an amount paid under the agreement.
(2) The manager can choose to include in the manager’s assessable
income for the income year in which the amount was paid one half of the amount
that the manager would otherwise be required to include for that year under
section 15-45 of the Income Tax Assessment Act 1997, and to include
one half of that amount for the following income year.
Income Tax Assessment Act
1997
5 Paragraph 35-55(1)(b)
After “carried on and”, insert “, for that or those
income years”.
6 Subparagraph
35-55(1)(b)(i)
Repeal the subparagraph, substitute:
(i) because of its nature, it has not satisfied, or will not satisfy, one
of the tests set out in section 35-30, 35-35, 35-40 or 35-45; and
7 Subsection 35-55(2)
Repeal the subsection.
Part 3—Years
after year including 21 September 2002
Income Tax Assessment Act
1936
8 Subsection 82KZMG(1)
Omit “82KZMB,”.
Part 4—Application
of amendments
9 Application of amendments
(1) The amendments made by Part 1 of this Schedule apply to
expenditure incurred on or after 2 October 2001.
(2) The amendments made by Part 2 of this Schedule apply to
assessments for the 2000-01 income year and later income years.
(3) The amendments made by Part 3 of this Schedule apply to
expenditure incurred by a taxpayer in an income year after the taxpayer’s
income year that includes 21 September 2002.