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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. 5) 2002
No.
, 2002
(Treasury)
A
Bill for an Act to amend the law relating to taxation, and for related
purposes
Contents
Income Tax (Transitional Provisions) Act
1997 4
Income Tax Assessment Act
1997 7
Income Tax Assessment Act
1997 9
Income Tax Assessment Act
1936 11
Income Tax Assessment Act
1997 11
Income Tax (Transitional Provisions) Act
1997 23
New Business Tax System (Capital Allowances—Transitional and
Consequential) Act
2001 25
Part 1—Main
amendments 27
Income Tax Assessment Act
1936 27
Part 2—Technical
amendments 31
Income Tax Assessment Act
1936 31
Part 3—Application of
amendments 33
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. 5)
2002.
(1) Each provision of this Act specified in column 1 of the table
commences, or is taken to have commenced, on the day or at the time specified in
column 2 of the table.
|
Commencement information |
||
|---|---|---|
|
Column 1 |
Column 2 |
Column 3 |
|
Provision(s) |
Commencement |
Date/Details |
|
1. Sections 1 to 4 and anything in this Act not elsewhere covered by
this table |
The day on which this Act receives the Royal Assent |
|
|
2. Schedules 1 and 2 |
The day on which this Act receives the Royal Assent |
|
|
3. Items 1 to 12 of Schedule 3 |
Immediately after the commencement of section 2 of the New Business
Tax System (Capital Allowances—Transitional and Consequential) Act
2001 |
|
|
4. Items 13 to 49 of Schedule 3 |
Immediately after the commencement of section 2 of the New Business
Tax System (Capital Allowances) Act 2001 |
|
|
5. Items 50 to 71 of Schedule 3 |
Immediately after the commencement of section 2 of the New Business
Tax System (Capital Allowances—Transitional and Consequential) Act
2001 |
|
|
6. Items 72 to 75 of Schedule 3 |
Immediately after the commencement of section 2 of the New Business
Tax System (Simplified Tax System) Act 2001 |
|
|
7. Item 76 of Schedule 3 |
Immediately after the commencement of section 2 of the New Business
Tax System (Capital Allowances—Transitional and Consequential) Act
2001 |
|
|
8. Items 77 to 78 of Schedule 3 |
Immediately after the commencement of section 2 of the New Business
Tax System (Simplified Tax System) Act 2001 |
|
|
9. Items 79 to 99 of Schedule 3 |
Immediately after the commencement of section 2 of the New Business
Tax System (Capital Allowances—Transitional and Consequential) Act
2001 |
|
|
10. Item 100 of Schedule 3 |
The day on which this Act receives the Royal Assent |
|
|
11. Schedule 4 |
The day on which this Act receives the Royal Assent |
|
Note: This table relates only to the provisions of this Act
as originally passed by the Parliament and assented to. It will not be expanded
to deal with provisions inserted in this Act after assent.
(2) Column 3 of the table is for additional information that is not part
of this Act. This information may be included in any published version of this
Act.
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.
Section 170 of the Income Tax Assessment Act 1936 does not
prevent the amendment of an assessment made before the commencement of this
section for the purposes of giving effect to this Act.
Income Tax (Transitional
Provisions) Act 1997
1 Section 70-40 (link
note)
Repeal the link note, substitute:
Application
(1) This section applies to you if:
(a) you carry on a business of oyster farming (other than oyster farming
carried on in hatcheries); and
(b) you held oysters that are covered by subsection (2) as trading
stock on hand at the start of the 2001-2002 income year (the relevant
stock); and
(c) some or all of those oysters should have been taken into account, as
items of your trading stock on hand, and under Division 70 of the Income
Tax Assessment Act 1997, at the end of the 2000-2001 income year;
and
(d) none of those oysters was so taken into account.
Oysters covered by subsection
(2) This subsection covers oysters all of which:
(a) were farmed by you solely for use as food for human consumption;
and
(b) had not yet been harvested at the start of the 2001-2002 income year;
and
(c) at or before that time, were acquired by you in this manner:
(i) you placed plastic slats or wooden sticks in the water for the
purposes of capturing oyster spat; and
(ii) the oysters, as spat, attached themselves to those slats or
sticks;
whether or not the oysters were, at the start of the 2001-2002 income
year, still attached to those slats or sticks.
What happens if this section applies to you
(3) If this section applies to you, subsections (4) to (7) have
effect for the purposes of Division 70, and Subdivision 328-E, of the
Income Tax Assessment Act 1997.
General rule
(4) The value of the relevant stock, as the value of items of your trading
stock on hand at the start of the 2001-2002 income year:
(a) is not to be worked out under section 70-40 of the Income Tax
Assessment Act 1997; and
(b) is the amount worked out in accordance with
subsection (6).
Special rule for an STS taxpayer
(5) If you were an STS taxpayer for the 2001-2002 income year, the value
of all your trading stock on hand at the start of that income year:
(a) is not to be worked out under subsection 328-295(1) of the Income
Tax Assessment Act 1997; and
(b) is the sum of:
(i) the value of the relevant stock (worked out in accordance with
subsection (6)); and
(ii) the total value of items of your trading stock on hand at the end of
the 2000-2001 income year that was taken into account under Division 70 of
that Act at the end of the 2000-2001 income year.
Note 1: This means that, if no value was taken into account
as mentioned in subparagraph (b)(ii), the value of all your trading stock
on hand at the start of the 2001-2002 income year is the value of the relevant
stock.
Note 2: The total value mentioned in
subparagraph (b)(ii) would not include the value of any oysters that were
items of the relevant stock (see paragraph (1)(d) and
subsection (3)).
Value of the relevant stock
(6) The value of the relevant stock is the amount worked out
in accordance with the following method statement:
Method statement
Step 1. Work out the total number of plastic slats that were used to
acquire any items of the relevant stock (see subsection (7)), where each of
the slats was approximately 1 metre long.
Step 2. Add to the result of step 1 the number of times by which any
of those slats were reused, after being used to acquire any items of the
relevant stock for the first time, to acquire other items of the relevant
stock.
Step 3. Multiply the result of step 2 by 50 cents.
Step 4. Work out the total number of wooden sticks, and plastic
slats, that were used to acquire any items of the relevant stock, where each of
the plastic slats was approximately 2 metres long.
Step 5. Add to the result of step 4 the number of times by which any
of the sticks or slats covered by step 4 were reused, after being used to
acquire any items of the relevant stock for the first time, to acquire other
items of the relevant stock.
Step 6. Multiply the result of step 5 by $1.
Step 7. Add the results of steps 3 and 6. The result of this step is
the value of the relevant stock.
Slats and sticks used to acquire items of relevant stock
(7) For the purposes of subsection (6), a plastic slat or wooden
stick is taken to have been used to acquire items of the relevant
stock if it was used in the manner described in paragraph (2)(c) to capture
oysters, as spat, that were items of the relevant stock.
Certain provisions are not affected
(8) This section does not affect the operation of any of the following
provisions:
(a) section 102AAY of the Income Tax Assessment Act 1936
(modified application of trading stock provisions for certain non-resident trust
estates);
(b) section 397 of that Act (modified application of trading stock
provisions for eligible CFCs);
(c) section 57-115 of Schedule 2D to that Act (modified
application of trading stock provisions for tax exempt entities that become
taxable);
(d) section 165-115W of the Income Tax Assessment Act 1997
(trading stock decrease for a CGT asset).
[The next section is section 70-55.]
Income Tax Assessment Act
1997
2 Subsection 70-40(2)
(note)
Omit “Note”, substitute “Note 1”.
3 At the end of subsection
70-40(2)
Add:
Note 2: If you held, as trading stock at the start of the
2001-2002 income year, oysters that were acquired by using the traditional stick
farming method, see section 70-41 of the Income Tax (Transitional
Provisions) Act 1997.
4 Subsection 328-295(1)
(note)
Omit “Note”, substitute “Note 1”.
5 At the end of subsection
328-295(1)
Add:
Note 2: If you held, as trading stock at the start of the
2001-2002 income year, oysters that were acquired by using the traditional stick
farming method, see section 70-41 of the Income Tax (Transitional
Provisions) Act 1997.
6 Subsection 995-1(1) (the note at the end of
the definition of value of an item of trading stock)
Omit “Note”, substitute “Note 1”.
7 Subsection 995-1(1) (at the end of the
definition of value of an item of trading stock)
Add:
Note 2: For the value of oysters acquired by using the
traditional stick farming method and held as trading stock at the start of the
2001-2002 income year, see section 70-41 of the Income Tax (Transitional
Provisions) Act 1997.
8 Application of amendments
The amendments of the Income Tax (Transitional Provisions) Act 1997
and the Income Tax Assessment Act 1997 made by this Schedule apply to
assessments for the 2001-2002 income year.
Income Tax Assessment Act
1997
1 Section 10-5 (at the end of the
table)
Add:
|
work in progress |
|
|
|
receipt of a work in progress amount |
15-50 |
|
2 Section 12-5 (at the end of the
table)
Add:
|
work in progress |
|
|
|
payment of a work in progress amount |
25-95 |
|
3 At the end of
Division 15
Add:
Your assessable income includes a *work
in progress amount that you receive.
Note: To find out whether the amount is deductible to the
payer, see section 25-95.
4 Subsection 20-30(1) (after table
item 1.8)
Insert:
|
1.8A |
25-95 |
work in progress amount |
5 At the end of
Division 25
Add:
(1) You can deduct a *work in progress
amount that you pay for the income year in which you pay it to the extent that,
as at the end of that income year:
(a) a recoverable debt has arisen in respect of the completion or partial
completion of the work to which the amount related; or
(b) you reasonably expect a recoverable debt to arise in respect of the
completion or partial completion of that work within the period of 12 months
after the amount was paid.
(2) You can deduct the remainder (if any) of the
*work in progress amount for the following
income year.
(3) An amount is a work in progress amount to the extent
that:
(a) an entity agrees to pay the amount to another entity (the
recipient); and
(b) the amount can be identified as being in respect of work (but not
goods) that has been partially performed by the recipient for a third entity but
not yet completed to the stage where a recoverable debt has arisen in respect of
the completion or partial completion of the work.
(4) An amount does not stop being a work in progress amount
merely because it is paid after a recoverable debt has arisen in respect of the
completion or partial completion of the work to which the amount
related.
6 Subsection 995-1(1)
Insert:
work in progress amount has the meaning given by
section 25-95.
7 Application
The amendments made by this Schedule apply to amounts paid on or after
23 September 1998.
Income Tax Assessment Act
1936
1 Subsection 57-85(3) of Schedule 2D (table
items 10 and 11)
Before “40-I”, insert “40-B or”.
2 Section 57-130 of
Schedule 2D
Omit “Subdivision 57-I”, substitute
“Subdivisions 57-I and 57-J”.
3 At the end of section 57-130 of
Schedule 2D
Add:
(2) Despite subsection (1), Subdivision 57-J applies for the
purposes of section 40-35 of the Income Tax (Transitional Provisions)
Act 1997 to capital expenditure incurred by a transition taxpayer before
1 July 2001 that relates to property that is not a depreciating
asset.
Income Tax Assessment Act
1997
4 Subsection 27-80(3A)
After “*opening adjustable value for
an income year”, insert “and its
*cost”.
5 Paragraph 27-80(3A)(d)
Repeal the paragraph, substitute:
(d) the entity can deduct amounts for the asset under Division 40 or
328.
The reduction is the amount of the input tax credit.
6 Subsection 27-80(4)
After “*opening adjustable value for
an income year”, insert “and its
*cost”.
7 Subsection 27-80(5)
Omit “or (4)”, substitute “, (3A) or
(4)”.
8 Paragraph 27-80(5)(b)
Omit “subsection (4)”, substitute
“subsection (3A) or (4)”.
9 Subsection 27-85(3)
After “*opening adjustable value for
an income year”, insert “and its
*cost”.
10 At the end of subsection
27-87(1)
Add:
; and (c) section 27-95 does not apply to the entity in relation to
the asset.
11 Subsection 27-90(3)
After “*opening adjustable value for
an income year”, insert “and its
*cost”.
12 Subsection 27-105(5)
Repeal the subsection, substitute:
(5) If the entity is a partnership and partners in that partnership can
deduct amounts under Division 40 because section 40-570 or 40-665
applies, an amount equal to the *input tax
credit, the *decreasing adjustment or the
*increasing adjustment is apportioned to each
of the partners as set out in subsection 40-570(2) or 40-665(2).
13 Subsection 40-25(1) (note
2)
After “STS taxpayers”, insert “both deduct
and”.
14 At the end of subsection 40-25(5) (before the
note)
Add:
Despite subsection (1), you can continue to deduct an amount equal to
the decline in value for an income year (as worked out under this Division) of
such an asset even though you do not continue to
*hold that asset.
15 Subsection 40-45(2)
Repeal the subsection, substitute:
Capital works
(2) This Division does not apply to capital works for which you can deduct
amounts under Division 43, or for which you could deduct amounts under that
Division:
(a) but for expenditure being incurred, or capital works being started,
before a particular day; or
(b) had you used the capital works for a purpose relevant to those capital
works under section 43-140.
Note: Section 43-20 lists the capital works to which
that Division applies.
16 Subsections 40-50(1) and
(2)
After “You cannot deduct an amount”, insert “, or work
out a decline in value,”.
17 Paragraph 40-75(2)(c)
Omit “for which the asset’s cost or
*adjustable value”, substitute “for
which the asset’s *opening adjustable
value”.
18 Paragraph 40-75(2)(d)
Repeal the paragraph.
19 Paragraph 40-75(2)(e)
Omit “adjustable value”, substitute “opening adjustable
value”.
20 Paragraph 40-75(2)(f)
Omit “*opening adjustable
value”, substitute “opening adjustable value”.
21 Paragraph 40-75(2)(f)
Omit “27-80(4)”, substitute “27-80(3A) or
(4)”.
22 Subsection 40-75(4)
Repeal the subsection, substitute:
(4) The remaining effective life of a
*depreciating asset is any period of its
*effective life that is yet to elapse as
at:
(a) the start of the change year; or
(b) in the case of a roll-over under section 40-340—the time
when the *balancing adjustment event occurs for
the transferor.
Note: Effective life is worked out in years and fractions of
years.
23 Subsection 40-85(2) (notes 1 and
2)
Repeal the notes, substitute:
Note: The opening adjustable value of a depreciating asset
may be modified by one of these provisions:
• Subdivision 27-B;
• subsection 40-90(3);
• subsection 40-285(4);
• paragraph 40-365(5)(b).
24 At the end of
section 40-175
Add:
Note: The cost of a depreciating asset may be modified by
one of these provisions:
• Subdivision 27-B;
• subsection 40-90(2);
• paragraph 40-365(5)(a).
25 Subsection 40-180(2) (table items 5 and
6)
Repeal the items, substitute:
|
5 |
A partnership asset that was *held, just
before it became a partnership asset, by one or more partners (whether or not
any other entity was a joint holder) or a partnership asset to which subsection
40-295(2) applies |
The *market value of the asset when the
partnership started to hold it or when the change referred to in subsection
40-295(2) occurred |
|
6 |
There is roll-over relief under section 40-340 for a
*balancing adjustment event happening to a
*depreciating asset |
The *adjustable value of the asset to the
transferor just before the balancing adjustment event occurred |
26 Subsection 40-180(2) (table
item 12)
Omit “The asset’s *adjustable
value at the time of death”, substitute “The asset’s
*adjustable value on the day the person died
or, if the asset is allocated to a low-value pool, so much of the
*closing pool balance for the income year in
which the person died as is reasonably attributable to the
asset”.
27 Subsection 40-215(1)
After “Division”, insert “or
Division 328”.
28 Subsection 40-230(1)
After “section 40-225”, insert “and
Subdivision 27-B”.
29 At the end of
section 40-230
Add:
(4) If you *hold a
*car that is also held by one or more other
entities, subsection (1) applies to the
*cost of the car despite section 40-35.
Then section 40-35 applies to the cost of the car as reduced under
subsection (1).
30 Subsection 40-285(2)
(note)
Omit “Note”, substitute “Note 1”.
31 At the end of subsection
40-285(2)
Add:
Note 2: The timing of a deduction allowed under this
subsection is determined under Subdivision 170-D where that Subdivision
applies to the balancing adjustment event.
32 Paragraph 40-295(2)(b)
Omit “held”, substitute “had an interest
in”.
33 Subsection 40-300(2) (table
item 9)
Omit “The *adjustable value of the
asset when you die”, substitute “The asset’s
*adjustable value on the day you died or, if
the asset is allocated to a low-value pool, so much of the
*closing pool balance for the income year in
which you died as is reasonably attributable to the asset”.
34 Subsection 40-300(2) (table
item 10)
Omit “just before”, substitute “on the
day”.
35 At the end of
section 40-300
Add:
(3) The termination value of a
*depreciating asset does not include an amount
that is included in assessable income as
*ordinary income under section 6-5 or as
*statutory income under section 6-10
(except an amount that is statutory income under this Division).
Note: Termination value may be adjusted under
Subdivision 27-B so that any GST consequences are accounted
for.
36 Section 40-325
After “*car limit)”, insert
“after applying Subdivision 27-B”.
37 Paragraph 40-340(3)(b)
Omit “*held”, substitute
“had an interest in”.
38 Subsection 40-365(5)
Repeal the subsection, substitute:
(5) For the purposes of applying this Act to the replacement
asset:
(a) its *cost is reduced by the amount
covered by the choice for the income year in which the asset’s
*start time occurs; and
(b) if the income year is later than the one in which the asset’s
*start time occurs—the sum of its
*opening adjustable value for that later year
and any amount included in the second element of the asset’s cost for that
later year is reduced by the amount covered by the choice.
39 Subsection 40-665(3)
Omit “this section”, substitute “this
Subdivision”.
40 Paragraph 40-880(1)(a)
Omit “a *business”, substitute
“your *business
structure”.
41 At the end of paragraph
40-880(1)(a)
Add:
Example: You incorporate a company or create some other
structure, such as a partnership or trust, through which your business will be
carried on. The capital expenditure you incur in doing this is covered by this
paragraph.
42 At the end of paragraph
40-880(1)(b)
Add:
Example: Michael and Sandra operate a fish shop in
partnership. They agree to incorporate their business so they dispose of the
partnership assets to a company. The capital expenses of incorporating the
company and of transferring the partnership assets to it are covered by this
paragraph.
43 At the end of paragraph
40-880(1)(c)
Add:
Example: CL Ltd wishes to issue shares for business
expansion. The capital expenditure it incurs to prepare and issue a prospectus
for this purpose is covered by this paragraph.
44 At the end of paragraph
40-880(1)(d)
Add:
Example: MH Limited has made an offer to take over AL
limited. The capital expenditure incurred by AL Limited in complying with
subsection 633(1) or 635(1) of the Corporations Act 2001 is covered by
this paragraph.
45 At the end of paragraph
40-880(1)(e)
Add:
Example: MGP Ltd tried unsuccessfully to take over MM Ltd.
Capital expenditure incurred by MGP in complying with subsection 633(1) or
635(1) of the Corporations Act 2001 is covered by this
paragraph.
46 Paragraph 40-880(1)(g)
Omit “a business”, substitute “your
business”.
47 At the end of paragraph
40-880(1)(g)
Add:
Example: You stop carrying on your business and, in doing
this, you incur legal costs in terminating the services of your employees. This
expenditure is covered by this paragraph.
48 Subsection 40-880(1)
Omit “is or was”, substitute “is, was or will
be”.
49 At the end of subsection
40-880(3)
Add:
; or (d) it is in relation to a lease or other legal or equitable right;
or
(e) it would, apart from this section, be taken into account in working
out:
(i) a profit that is included in your assessable income (for example,
under section 6-5 or 15-15); or
(ii) a loss that you can deduct (for example, under section 8-1 or
25-40); or
(f) it would, apart from this section, be taken into account in working
out the amount of a *capital gain or
*capital loss from a
*CGT event; or
(g) it is specifically made non-deductible under another provision of this
Act.
50 At the end of
section 43-140
Add:
(2) This Division applies to an entity as if the entity used property for
the *purpose of producing assessable income if
the entity uses the property for:
(a) *environmental protection activities;
or
(b) the environmental impact assessment of a project;
unless a provision of this Act expressly provides that that use is not for
the purpose of producing assessable income.
51 Section 45-1
Omit “depreciation”, substitute “the decline in
value”.
52 Paragraph 45-15(1)(a)
Omit “depreciation”, substitute “the decline in
value”.
53 Paragraph 45-15(1)(b)
Omit “owned or was the *quasi-owner
of”, substitute
“*held”.
54 Paragraph 45-15(1)(c)
Omit “owned or was the quasi-owner of”, substitute
“held”.
55 Subparagraph
45-20(1)(b)(ii)
Omit “owned or was the *quasi-owner
of”, substitute
“*held”.
56 Paragraph 45-20(1)(c)
Omit “*held”, substitute
“held”.
57 Paragraph 45-35(2)(b)
Omit “depreciation”, substitute “the decline in
value”.
58 Paragraph 45-35(3)(b)
Omit “depreciation”, substitute “the decline in
value”.
59 Subsection 104-235(1A)
Repeal the subsection, substitute:
(1A) However, subsection (1) does not apply if:
(a) you are an eligible company (within the meaning of section 73B of
the Income Tax Assessment Act 1936) and the
*depreciating asset is a section 73BA
depreciating asset (within the meaning of section 73BB of that Act);
or
(b) there is roll-over relief for the
*balancing adjustment event under
section 40-340 of this Act; or
(c) the asset is one for which you or another entity has deducted or can
deduct amounts under Subdivision 40-F or 40-G.
60 Paragraph 104-235(4)(b)
Omit “asset’s decline in value”, substitute
“asset”.
61 Subsection 106-5(5)
Repeal the subsection.
62 Paragraph 108-55(1)(b)
After “73B”, insert “or 73BM”.
63 Paragraph 108-55(1)(b)
After “73B”, insert “, 73BF”.
64 After paragraph
110-45(2)(a)
Insert:
(ab) the deduction is under Division 243; or
65 Subsection 115-20(1)
Repeal the subsection, substitute:
(1) To be a *discount capital gain, the
*capital gain must have been worked
out:
(a) using a *cost base that has been
calculated without reference to indexation at any time; or
(b) for a capital gain that arose under
*CGT event K7—using the
*cost of the
*depreciating asset concerned.
Note: A listed investment company must also calculate
capital gains without reference to indexation in order to allow its shareholders
to access the concessions in Subdivision 115-D.
66 Section 116-25 (table item
K7)
Repeal the item.
67 Section 118-24
Repeal the section, substitute:
(1) A *capital gain or
*capital loss you make from a
*CGT event (that is also a
*balancing adjustment event) that happens to a
*depreciating asset or a section 73BA
depreciating asset (within the meaning of section 73BB of the Income Tax
Assessment Act 1936) is disregarded if the asset was:
(a) an asset you *held; or
(b) if you are a partner, an asset of the partnership; or
(c) if you are absolutely entitled to the asset as against the trustee of
a trust (disregarding any legal disability), an asset of the trustee;
where the decline in value of the asset was worked out under
Division 40, or the deduction for the asset was calculated under
Division 328, or would have been if the asset had been used.
(2) However, subsection (1) does not apply to:
(a) a *capital gain or
*capital loss you make from
*CGT event J2 or
*CGT event K7 happening; or
(b) a *depreciating asset for which you
or another entity has deducted or can deduct amounts under Subdivision 40-F
or 40-G.
68 Paragraph 124-75(2)(a)
After “*depreciating asset”,
insert “whose decline in value is worked out under Division 40 or
deductions for which are calculated under Division 328”.
69 Subsection 124-75(5)
After “*depreciating asset”,
insert “whose decline in value is worked out under Division 40 or
deductions for which are calculated under Division 328”.
70 Subsection 124-80(2)
After “*depreciating asset”,
insert “whose decline in value is worked out under Division 40 or
deductions for which are calculated under Division 328”.
71 At the end of
section 152-110
Add:
Exception
(3) However, subsection (2) does not apply to income
*derived by a company or trust as a result of a
*balancing adjustment event occurring to a
*depreciating asset:
(a) whose decline in value is worked out under Division 40;
or
(b) deductions for which are calculated under Division 328.
72 Subsection 328-175(6)
Omit “is intended”, substitute “might reasonably be
expected”.
73 Subsection 328-180(1)
Omit “You cannot deduct any further amount for the
asset.”.
74 Subsection 328-180(2)
Repeal the subsection, substitute:
(2) You can also deduct for an income year for which you are an
*STS taxpayer the
*taxable purpose proportion of an amount
included in the second element of the *cost of
a *low-cost asset for which you have deducted
an amount under subsection (1) if:
(a) the amount so included is less than $1,000; and
(b) you started to use the asset, or have it
*installed ready for use, for a
*taxable purpose during an earlier income
year.
(3) A *low-cost asset for which you have
deducted an amount under this section is allocated to your
*general STS pool if:
(a) an amount of $1,000 or more is included in the second element of the
asset’s *cost; or
(b) any amount is included in the second element of the asset’s cost
and you have deducted or can deduct an amount under subsection (2) for an
amount previously included in the second element of the asset’s
cost.
(4) This Division applies to the asset as if its
*adjustable value were the amount included in
the second element of its *cost as mentioned in
subsection (3).
(5) Subsection (3) applies even if the amount is included in the
second element of the asset’s *cost when
you are not an *STS taxpayer.
75 Subsection 328-225(3)
Omit “the end of”, substitute “the beginning
of”.
76 Subsection 995-1(1) (after paragraph (a)
of the definition of capital allowance)
Insert:
(ab) Division 43 (capital works) of this Act; or
77 Subsection 995-1(1) (before
paragraph (b) of the definition of capital
allowance)
Insert:
(ac) Subdivision 328-D (capital allowances for STS taxpayers) of this
Act; or
78 Subsection 995-1(1) (paragraph (b) of
the definition of in-house software)
Omit “Division 40”, substitute “Divisions 40
and 328”.
Income Tax (Transitional
Provisions) Act 1997
79 Paragraph 40-10(1)(a)
After “2001”, insert “and the New Business Tax
System (Capital Allowances—Transitional and Consequential) Act
2001”.
80 Subsection 40-10(2)
After “2001”, insert “and the New Business Tax
System (Capital Allowances—Transitional and Consequential) Act
2001”.
81 Paragraph 40-10(2)(b)
After “Act”, insert “, or that you would have used if you
had used the plant for the purpose of producing assessable income at the end of
30 June 2001”.
82 Paragraph 40-20(1)(a)
After “former Act”, insert “or you would have been able
to deduct an amount for it under that Division if you had used it for the
purpose of producing assessable income before 1 July 2001”.
83 Paragraph 40-20(2)(a)
After “former Act”, insert “or that you would have used
if you had used the IRU for the purpose of producing assessable income before
1 July 2001”.
84 Subsection 40-25(2)
After “former Act” (first occurring), insert “or for
which you could have deducted amounts under that Subdivision if you had used the
software for the purpose of producing assessable income before 1 July
2001”.
85 Subsection 40-25(2)
Omit “Subdivision 40-B”, substitute
“Division 40”.
86 Paragraph 40-25(2)(d)
After “former Act”, insert “or that you would have used
if you had used the software for the purpose of producing assessable income
before 1 July 2001”.
87 At the end of subsection
40-30(1)
Add “or you could have deducted an amount under that Division for
that expenditure if you had used the licence for the purpose of producing
assessable income on or before that day”.
88 Subsection 40-30(2)
Omit “Subdivision 40-B”, substitute
“Division 40”.
89 Paragraph 40-45(1)(b)
After “former Act”, insert “or you could have deducted an
amount under that Division for that expenditure if you had used the asset for
the purpose of producing assessable income on or before that
day”.
90 Subsection 40-45(2)
Omit “Subdivision 40-B”, substitute
“Division 40”.
91 Subsection 40-50(2)
Omit “Subdivision 40-B”, substitute
“Division 40”.
92 At the end of
Subdivision 40-B
Add:
A determination by the Commissioner of the effective life of an asset
that was made under section 42-110 of the former Act and that was in force
at the end of 30 June 2001 has effect as if it had been made under
section 40-100 of the new Act.
93 Paragraph 40-340(1)(b)
After “subsection 40-10(3)”, insert “or
40-12(3)”.
94 Paragraph 40-340(2)(d)
After “subsection 40-10(3)”, insert “or
40-12(3)”.
95 Subsection 40-340(3)
After “subsection 40-10(3)”, insert “or
40-12(3)”.
96 Section 40-425
Repeal the section.
New Business Tax System
(Capital Allowances—Transitional and Consequential) Act
2001
97 Subitem 488(1) of
Schedule 2
Omit “subitem (2)”, substitute “this
item”.
98 After subitem 488(1) of
Schedule 2
Insert:
(1A) The amendment made by item 194 applies to amounts received on or
after 1 July 2001.
(1B) The amendments made by items 255 to 258 (inclusive) and 260 to
314 (inclusive) apply to CGT events happening on or after 1 July
2001.
(1C) The amendment made by item 259 applies to balancing adjustment
events occurring on or after 1 July 2001.
99 Subitem 488(3) of
Schedule 2
Repeal the subitem, substitute:
(3) Despite its repeal by item 336 of this Schedule, Division 388
of the former Act continues to apply until the end of the 2002-03 income
year.
100 Application of
amendments
(1) The amendments made by items 1 to 39 (inclusive), 50 to 58
(inclusive) and 76 of this Schedule apply to:
(a) depreciating assets:
(i) you start to hold under a contract entered into after 30 June
2001; or
(ii) you constructed where the construction started after that day;
or
(iii) you start to hold in some other way after that day; and
(b) expenditure that does not form part of the cost of a depreciating
asset incurred after that day.
(2) The amendments made by items 40 to 49 (inclusive) of this Schedule
apply to expenditure that does not form part of the cost of a depreciating asset
incurred on or after 1 July 2001.
(3) The amendments made by items 59 and 60 of this Schedule apply to
balancing adjustment events occurring on or after 1 July 2001.
(4) The amendments made by items 61 and 64 to 71 (inclusive) of this
Schedule apply to CGT events happening on or after 1 July 2001.
(5) The amendment made by item 62 of this Schedule applies to
assessments for the income year in which 29 January 2001 occurs and later
income years.
(6) The amendment made by item 63 of this Schedule applies to
assessments for the income year in which 1 July 2001 occurs and later
income years.
(7) The amendment made by item 64 of this Schedule applies to debts
that are terminated after 27 February 1998.
(8) The amendments made by items 72, 73, 74, 75, 77 and 78 of this
Schedule apply to assessments for the first income year starting after
30 June 2001, and for later income years.
Income Tax Assessment Act
1936
1 Subsection 222AFB(1) (definition of due
date)
Repeal the definition, substitute:
due date, in relation to an amount required to be paid to the
Commissioner under a remittance provision, means the day on, by or before which
the amount must be paid to the Commissioner.
2 Subsection 222AFB(1)
Insert:
non-cash benefit has the same meaning as in the Income Tax
Assessment Act 1997.
3 Subsection 222AFB(1) (at the end of the
definition of person)
Add:
and (h) an entity within the meaning of the Income Tax Assessment Act
1997.
4 Paragraphs 222AGA(1)(a) and
(b)
Repeal the paragraphs, substitute:
(a) a person (the person liable) has become liable under a
remittance provision to pay an amount to the Commissioner; and
(b) the liability to pay that amount remains undischarged after the due
date;
5 Subsection 222AGA(2)
Repeal the subsection, substitute:
(2) In making the estimate, the Commissioner may have regard to anything
he or she thinks relevant, for example, information about:
(a) amounts deducted; or
(b) amounts withheld from payments; or
(c) payments received; or
(d) non-cash benefits provided;
during a period earlier than the period in relation to which the liability
arose.
6 Paragraph 222AGB(2)(e)
Repeal the paragraph, substitute:
(e) state that if the person or the person’s trustee gives the
Commissioner a statutory declaration substantiating the actual unpaid amount of
the liability to which the estimate relates, the estimate will be reduced
accordingly; and
(ea) state that the estimate will be revoked if the person or the
person’s trustee gives the Commissioner a statutory declaration to the
effect that, during the period concerned, the person did not:
(i) make any deductions for the purposes of Division 1AA, 2, 3A, 3B
or 4; or
(ii) withhold any amounts under Division 12 in Schedule 1 to the
Taxation Administration Act 1953; or
(iii) receive any payments that gave rise to a liability under
Division 13 in that Schedule; or
(iv) provide any non-cash benefits that gave rise to a liability under
Division 14 in that Schedule;
as the case requires; and
(eb) state that a statutory declaration mentioned in paragraph (e) or
(ea) must comply with section 222AGF; and
7 Paragraph 222AGD(1)(b)
Repeal the paragraph, substitute:
(b) the declaration is to the effect that, during the period concerned,
the person did not:
(i) make any deductions for the purposes of Division 1AA, 2, 3A, 3B
or 4; or
(ii) withhold any amounts under Division 12 in Schedule 1 to the
Taxation Administration Act 1953; or
(iii) receive any payments that gave rise to a liability under
Division 13 in that Schedule; or
(iv) provide any non-cash benefits that gave rise to a liability under
Division 14 in that Schedule;
as the case requires.
8 Subsection 222AGF(4)
Repeal the subsection, substitute:
(4) The declaration must:
(a) specify:
(i) the total of the amounts of the deductions that the person made for
the purposes of Division 1AA, 2, 3A, 3B or 4 during the period concerned;
or
(ii) the total of the amounts withheld under Division 12 in
Schedule 1 to the Taxation Administration Act 1953 during the period
concerned; or
(iii) the total of the amounts of the payments received during the period
concerned that gave rise to a liability under Division 13 in that Schedule
and the total of the amounts of those liabilities; or
(iv) the total of the values of the non-cash benefits, or the amounts of
the dividends, interest or royalties, provided during the period concerned that
gave rise to a liability under Division 14 in that Schedule and the total
of the amounts of those liabilities;
as the case requires; or
(b) state to the effect that during the period concerned, the person did
not:
(i) make any deductions for the purposes of Division 1AA, 2, 3A, 3B
or 4; or
(ii) withhold any amounts under Division 12 in Schedule 1 to the
Taxation Administration Act 1953; or
(iii) receive any payments that gave rise to a liability under
Division 13 in that Schedule; or
(iv) provide any non-cash benefits that gave rise to a liability under
Division 14 in that Schedule;
as the case requires.
9 Subsection 222AGF(5)
Omit “that Division in relation to the deductions (if any) that the
person so made”, substitute “a remittance
provision”.
10 At the end of
section 222ANB
Add:
(3) A person purporting to withhold an amount under Division 12 in
Schedule 1 to the Taxation Administration Act 1953 is taken to have
withheld the amount under that Division.
Income Tax Assessment Act
1936
11 Paragraph 222AIB(1)(a)
Omit “section 260”, substitute
“section 234”.
12 Section 222AIC
Before “that section”, insert “of”.
13 Paragraph 222AJB(1)(b)
Omit “a penalty payable”, substitute “pay a general
interest charge”.
Note: The heading to section 222AJB is altered by
omitting “or late payment penalty”.
14 Paragraph 222AJB(1)(b)
Omit “this Act”, substitute “this Part”.
15 Subsection 222AJB(3)
Repeal the subsection, substitute:
(3) If, because a judgment debt carries interest, section 8AAH of the
Taxation Administration Act 1953 reduces the amount of a general interest
charge payable as mentioned in paragraph (1)(b), the amount of the
reduction is taken for the purposes of subsection (2) to have been applied
towards discharging the person’s liability to the charge.
16 Subsection 222AOF(1)
Omit “ASC documents”, substitute “ASIC
documents”.
17 Subsection 222AOF(2) (definition of ASC
document)
Repeal the definition.
18 Subsection 222AOF(2)
Insert:
ASIC document means a return:
(a) lodged with the Australian Securities and Investments Commission under
section 205B or 345 of the Corporations Act 2001; or
(b) lodged with a person under a law that, for the purposes of the
Corporations Act 2001, is a previous law corresponding to
section 205B or 345 of that Act.
Part 3—Application
of amendments
19 Application
The amendments made by Part 1 of this Schedule apply to:
(a) an amount withheld under Division 12 in Schedule 1 to the
Taxation Administration Act 1953 during a financial year beginning on or
after 1 July 2001; and
(b) a payment received during a financial year beginning on or after
1 July 2001 that gives rise to a liability under Division 13 of that
Schedule; and
(c) a non-cash benefit provided during a financial year beginning on or
after 1 July 2001 that gives rise to a liability under Division 14 of
that Schedule.