Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990 - SECT 58

58. Section 251R of the Principal Act is amended:

   (a)  by omitting from subsection (3) "and (6)" and substituting ", (6),
        (6B), (6C) and (6D)";

   (b)  by inserting after subsection (6) the following subsections:

"(6A) A reference in subsections (6B), (6C) and (6D) to an eligible prescribed
person in relation to a period is a reference to a person who would, apart
from subsections 251U (2) and (3), be taken to have been a prescribed person,
for the purposes of this Part and of any Act imposing levy, during that period
by virtue of paragraph 251U (1) (a), (b) or (c).

"(6B) For the purposes of this Part, where:

   (a)  a person (in this subsection called the 'first person') was an
        eligible prescribed person in relation to a period in a year of
        income; and

   (b)  apart from this subsection, another person (in this subsection called
        the 'leviable person') would be a dependant of the first person during
        that period; and

   (c)  levy is payable by the leviable person upon the taxable income of the
        year of income; the leviable person is not to be taken to have been a
        dependant of the first person during that period.

"(6C) For the purposes of this Part, where:

   (a)  a person (in this subsection called the 'first person') was an
        eligible prescribed person in relation to a period in a year of
        income; and

   (b)  another person (in this subsection called the 'spouse') was the spouse
        of the first person during the whole of that period; and

   (c)  the spouse was not an eligible prescribed person in relation to that
        period; and

   (d)  levy is payable by the spouse upon the taxable income of the year of
        income; and

   (e)  apart from this subsection, a child of both the first person and the
        spouse would be a dependant of both the first person and the spouse
        during that period; that child is not to be taken to have been a
        dependant of the first person during that period.

"(6D) Subject to subsection (6F), for the purposes of this Part, where:

   (a)  a person (in this subsection and subsections (6E) to (6H) (inclusive)
        called the 'first person') was an eligible prescribed person in
        relation to a period in a year of income; and

   (b)  another person (in this subsection called the 'spouse') was the spouse
        of the first person during the whole of that period; and

   (c)  the spouse was an eligible prescribed person in relation to that
        period; and

   (d)  apart from this subsection, levy would be payable by both the first
        person and the spouse upon their respective taxable incomes of the
        year of income; and

   (e)  apart from this subsection, a child of both the first person and the
        spouse would be a dependant of both the first person and the spouse
        during that period; and

   (f)  the first person and the spouse have entered into an agreement (in
        subsections (6E) to (6H) (inclusive) called the 'family agreement')
        stating that, for levy purposes, that child:

        (i)    is not to be treated as a dependant of the first person during
               that period; and

        (ii)   is to be treated as a dependant of the spouse during that
               period; that child is not to be taken to be a dependant of the
               first person during that period.

"(6E) The family agreement must be entered into on or before the date of
lodgment of the return of income of the first person for the year of income
concerned or within such further time as the Commissioner allows.

"(6F) Subsection (6D) does not apply, and is to be taken never to have
applied, if the first person fails to retain the family agreement for the
period of 5 years commencing on the date of lodgment of the return of income
of the first person for the year of income concerned.

"(6G) Where the family agreement is lost or destroyed and the Commissioner is
satisfied that the first person has a document (in this subsection called the
'substitute family agreement') that:

   (a)  is a copy of the family agreement; or

   (b)  properly records all the matters set out in the family agreement and
        was in existence when the family agreement was lost or destroyed; the
        substitute family agreement is to be taken, for the purposes of this
        section, to be, and to have been at all times after the family
        agreement was lost or destroyed, the family agreement.

"(6H) Where the family agreement is lost or destroyed and the Commissioner is
satisfied that:

   (a)  the family agreement was lost or destroyed because of circumstances
        beyond the control of the first person; and

   (b)  subsection (6G) does not apply; subsection (6F) does not apply and is
        to be taken never to have applied.

"(6j) Section 170 does not prevent the amendment of an assessment at any time
for the purposes of giving effect to subsection (6F), (6G) or (6H).".