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This is a Bill, not an Act. For current law, see the Acts databases.
TAX LAWS AMENDMENT (2009 BUDGET MEASURES NO. 1) BILL 2009
2008-2009
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Tax Laws Amendment (2009 Budget
Measures No. 1) Bill 2009
No. , 2009
(Treasury)
A Bill for an Act to amend the law relating to
taxation and superannuation, and for related
purposes
i Tax Laws Amendment (2009 Budget Measures No. 1) Bill 2009 No. , 2009
Contents
1
Short title ............................................................................................ 1
2
Commencement .................................................................................. 1
3
Schedule(s) ......................................................................................... 2
Schedule 1--Exe mption of income derived from foreign service
3
Income Tax Assessment Act 1936
3
Schedule 2--Government Co-contribution for Low Income
Earners
5
Superannuation (Government Co-contribution for Low Income
Earners) Act 2003
5
Schedule 3--Excess contributions tax
8
Income Tax Assessment Act 1997
8
Income Tax (Transitional Provisions) Act 1997
10
Tax Laws Amendment (2009 Budget Measures No. 1) Bill 2009 No. , 2009 1
A Bill for an Act to amend the law relating to
1
taxation and superannuation, and for related
2
purposes
3
The Parliament of Australia enacts:
4
1 Short title
5
This Act may be cited as the Tax Laws Amendment (2009 Budget
6
Measures No. 1) Act 2009.
7
2 Commence ment
8
This Act commences on the day on which it receives the Royal
9
Assent.
10
2 Tax Laws Amendment (2009 Budget Measures No. 1) Bill 2009 No. , 2009
3 Schedule(s)
1
Each Act that is specified in a Schedule to this Act is amended or
2
repealed as set out in the applicable items in the Schedule
3
concerned, and any other item in a Schedule to this Act has effect
4
according to its terms.
5
6
Exemption of inco me derived fro m foreign service Schedule 1
Tax Laws Amendment (2009 Budget Measures No. 1) Bill 2009 No. , 2009 3
Schedule 1
--
Exemption of income derived
1
from foreign service
2
3
Income Tax Assessment Act 1936
4
1 After subsection 23AG(1)
5
Insert:
6
(1AA) However, those foreign earnings are not exempt from tax under
7
this section unless the continuous period of foreign service is
8
directly attributable to any of the following:
9
(a) the delivery of Australian official development assistance by
10
the person's employer;
11
(b) the activities of the person's employer in operating a public
12
fund covered by item 9.1.1 or 9.1.2 of the table in subsection
13
30-80(1) of the Income Tax Assessment Act 1997
14
(international affairs deductible gift recipients);
15
(c) the activities of the person's employer, if the employer is
16
exempt from income tax because of paragraph 50-50(c) or (d)
17
of the Income Tax Assessment Act 1997 (prescribed
18
institutions located or pursuing objectives outside Australia);
19
(d) the person's deployment outside Australia as a member of a
20
disciplined force by:
21
(i) the Commonwealth, a State or a Territory; or
22
(ii) an authority of the Commonwealth, a State or a
23
Territory;
24
(e) an activity of a kind specified in the regulations.
25
2 Application
26
(1)
The amendment made by this Schedule applies to foreign earnings
27
derived on or after 1 July 2009 from foreign service performed on or
28
after 1 July 2009.
29
(2)
Subitem (3) applies to:
30
(a) foreign earnings derived before 1 July 2009 from foreign
31
service performed before, on or after 1 July 2009; and
32
(b) foreign earnings derived on or after 1 July 2009 from foreign
33
service performed before 1 July 2009.
34
Schedule 1 Exemption of income derived fro m foreign service
4 Tax Laws Amendment (2009 Budget Measures No. 1) Bill 2009 No. , 2009
(3)
Disregard the amendment made by this Schedule in determining
1
whether the foreign earnings are exempt from tax under subsection
2
23AG(1) of the Income Tax Assessment Act 1936.
3
4
Govern ment Co-contribution for Lo w Income Earners Schedule 2
Tax Laws Amendment (2009 Budget Measures No. 1) Bill 2009 No. , 2009 5
Schedule 2
--
Government Co-contribution for
1
Low Income Earners
2
3
Superannuation (Government Co-contribution for Low
4
Income Earners) Act 2003
5
1 Paragraph 9(1)(b)
6
Omit "the 2004-05 income year or a later income year", substitute "the
7
2004-05 income year, the 2005-06 income year, the 2006-07 income
8
year, the 2007-08 income year or the 2008-09 income year".
9
2 Paragraph 9(1)(b)
10
Omit "year.", substitute "year; and".
11
3 At the end of subsection 9(1)
12
Add:
13
(c) for the 2009-10 income year, the 2010-11 income year or the
14
2011-12 income year--an amount equal to the sum of the
15
eligible personal superannuation contributions the person
16
makes during the income year; and
17
(d) for the 2012-13 income year or the 2013-14 income year--an
18
amount equal to 125% of the sum of the eligible personal
19
superannuation contributions the person makes during the
20
income year; and
21
(e) for the 2014-15 income year or a later income year--an
22
amount equal to 150% of the sum of the eligible personal
23
superannuation contributions the person makes during the
24
income year.
25
4 Subsection 10(1A)
26
Omit "the 2004-05 income year or a later income year", substitute "the
27
2004-05 income year, the 2005-06 income year, the 2006-07 income
28
year, the 2007-08 income year or the 2008-09 income year".
29
5 After subsection 10(1A)
30
Insert:
31
Schedule 2 Govern ment Co-contribution for Lo w Income Earners
6 Tax Laws Amendment (2009 Budget Measures No. 1) Bill 2009 No. , 2009
(1B) The amount of the Government co-contribution in respect of a
1
person for the 2009-10 income year, the 2010-11 income year or
2
the 2011-12 income year must not exceed the maximum amount
3
worked out using the following table:
4
5
Maximum Government co-contribution
Item
Person's total income for the
income year
Maximum amount
1
the lower inco me threshold or
less
$1,000
2
more than the lower inco me
threshold but less than the
higher inco me threshold
$1,000 reduced by 3.333 cents for
each dollar by which the person's
total income for the inco me year
exceeds the lower income
threshold
(1C) The amount of the Government co-contribution in respect of a
6
person for the 2012-13 income year or the 2013-14 income year
7
must not exceed the maximum amount worked out using the
8
following table:
9
10
Maximum Government co-contribution
Item
Person's total income for the
income year
Maximum amount
1
the lower inco me threshold or
less
$1,250
2
more than the lower inco me
threshold but less than the
higher inco me threshold
$1,250 reduced by 4.167 cents for
each dollar by which the person's
total income for the inco me year
exceeds the lower income
threshold
(1D) The amount of the Government co-contribution in respect of a
11
person for the 2014-15 income year or a later income year must not
12
exceed the maximum amount worked out using the following
13
table:
14
15
Govern ment Co-contribution for Lo w Income Earners Schedule 2
Tax Laws Amendment (2009 Budget Measures No. 1) Bill 2009 No. , 2009 7
Maximum Government co-contribution
Item
Person's total income for the
income year
Maximum amount
1
the lower inco me threshold or
less
$1,500
2
more than the lower inco me
threshold but less than the
higher inco me threshold
$1,500 reduced by 5 cents for
each dollar by which the person's
total income for the inco me year
exceeds the lower income
threshold
6 Subsection 10(2)
1
Omit "Subsections (1) and (1A) has", substitute "Subsections (1), (1A),
2
(1B), (1C) and (1D) have".
3
7 Application
4
The amendments made by this Schedule apply to the 2009-10 income
5
year and later income years.
6
7
Schedule 3 Excess contributions tax
8 Tax Laws Amendment (2009 Budget Measures No. 1) Bill 2009 No. , 2009
Schedule 3
--
Excess contributions tax
1
2
Income Tax Assessment Act 1997
3
1 Subsection 292-20(2)
4
Repeal the subsection (not including the notes), substitute:
5
(2) Your concessional contributions cap is:
6
(a) for the 2007-2008
*
financial year--$50,000; or
7
(b) for the 2008-2009 financial year--$50,000; or
8
(c) for the 2009-2010 financial year--$25,000; or
9
(d) for the 2010-2011 financial year or a later financial year--the
10
amount worked out by indexing annually the amount
11
mentioned in paragraph (c).
12
2 Subsection 292-85(2)
13
Repeal the subsection, substitute:
14
(2) Your non-concessional contributions cap is:
15
(a) for the 2007-2008
*
financial year--the amount that is 3 times
16
your
*
concessional contributions cap for the year; and
17
(b) for the 2008-2009 financial year--the amount that is 3 times
18
your concessional contributions cap for the year; and
19
(c) for the 2009-2010 financial year or a later financial year--the
20
amount that is 6 times your concessional contributions cap
21
for the year.
22
3 Paragraph 292-170(6)(b)
23
Omit "apart from this subsection", substitute "disregarding this
24
subsection and subsection (8)".
25
4 At the end of section 292-170
26
Add:
27
(8) Despite subsection (1), your notional taxed contributions for the
28
*
financial year in respect of the
*
defined benefit interest are equal
29
to your
*
concessional contributions cap for the financial year if:
30
(a) this Subdivision applies in relation to you because you have a
31
defined benefit interest in a financial year; and
32
Excess contributions tax Schedule 3
Tax Laws Amendment (2009 Budget Measures No. 1) Bill 2009 No. , 2009 9
(b) disregarding this subsection, the notional taxed contributions
1
for the financial year in respect of the defined benefit interest
2
exceed your concessional contributions cap for the financial
3
year; and
4
(c) either:
5
(i) you held the defined benefit interest in a
6
*
superannuation fund on 12 May 2009; or
7
(ii) all the requirements in subsection (9) are satisfied; and
8
(d) the conditions (if any) specified in the regulations are
9
satisfied; and
10
(e) the financial year is the 2009-2010 financial year or a later
11
financial year.
12
(9) For the purposes of subparagraph (8)(c)(ii), the requirements are as
13
follows:
14
(a) you held a
*
defined benefit interest (the original interest) in a
15
*
superannuation fund (the original fund) on 12 May 2009;
16
(b) the defined benefit interest mentioned in paragraph (8)(a)
17
(the current interest) is in a different superannuation fund
18
(the current fund);
19
(c) the entire
*
value of the original interest:
20
(i) was transferred directly to the current interest after
21
12 May 2009; or
22
(ii) was transferred to another
*
superannuation interest after
23
12 May 2009, and was later transferred to the current
24
interest (whether directly or through a series of transfers
25
between superannuation interests);
26
(d) your rights to accrue future benefits under the current interest
27
are equivalent to your rights to accrue future benefits under
28
the original interest;
29
(e) either:
30
(i) the notional taxed contributions mentioned in
31
paragraph (8)(b) do not exceed what they would have
32
been if the transfer mentioned in paragraph (c) had not
33
taken place; or
34
(ii) the conditions (if any) specified in the regulations are
35
satisfied;
36
(f) the conditions (if any) specified in the regulations are
37
satisfied.
38
Schedule 3 Excess contributions tax
10 Tax Laws Amendment (2009 Budget Measures No. 1) Bill 2009 No. , 2009
5 Paragraph 960-285(2)(a)
1
Repeal the paragraph, substitute:
2
(a) firstly:
3
(i) if the amount is mentioned in item 9 in section 960-265
4
(concessional contributions cap)--multiplying the
5
amount for the 2009-2010 financial year by its
6
*
indexation factor mentioned in subsection (3A); or
7
(ii) otherwise--multiplying the amount for the 2007-2008
8
income year or financial year by its indexation factor
9
mentioned in subsection (4); and
10
6 Subsection 960-285(3)
11
Omit "subsection (4)", substitute "subsection (3A) or (4)".
12
7 After subsection 960-285(3)
13
Insert:
14
Indexation factor
15
(3A) For indexation of the amount on an annual basis in accordance
16
with subparagraph (2)(a)(i), the indexation factor is:
17
*Index number mentioned in subsection (6) for the quarter ending
on 31 December just before the start of the relevant income year or financial year
*Index number mentioned in subsection (6)
for the quarter ending on 31 December 2008
18
8 Subsection 960-285(4) (heading)
19
Repeal the heading.
20
9 Subsection 960-285(4)
21
After "annual basis", insert "in accordance with
22
subparagraph (2)(a)(ii)".
23
10 Subsection 960-285(5)
24
Omit "subsection (4)", substitute "subsection (3A) or (4)".
25
Income Tax (Transitional Provisions) Act 1997
26
11 Subsection 292-20(2)
27
Excess contributions tax Schedule 3
Tax Laws Amendment (2009 Budget Measures No. 1) Bill 2009 No. , 2009 11
Repeal the subsection, substitute:
1
(2) Despite section 292-20 of the Income Tax Assessment Act 1997,
2
your concessional contributions cap for that financial year is:
3
(a) if the year is the 2007-2008 financial year--$100,000; or
4
(b) if the year is the 2008-2009 financial year--$100,000; or
5
(c) if the year is the 2009-2010 financial year--$50,000; or
6
(d) if the year is the 2010-2011 financial year--$50,000; or
7
(e) if the year is the 2011-2012 financial year--$50,000.
8
Note:
This amount is not indexed.
9