TAX LAWS AMENDMENT (2011 MEASURES NO. 9) BILL 2011

i Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011

Contents

1 Short

title

...........................................................................................

2 Commencement

.................................................................................

3 Schedule(s)

........................................................................................

Amendment of assessments ............................................................... 5

Schedule 1--Form for portability of superannuation

Retirement Savings Accounts Act 1997

Superannuation Industry (Supervision) Act 1993

Schedule 2--Capital gains tax and certain business

restructures

Part 1--Share and interest sale facilities for foreign interest

holders in a restructure

Income Tax Assessment Act 1997

Part 2--CGT demerger relief

Income Tax Assessment Act 1997

Part 3--Roll-overs for change of incorporation

Division 1--Main amendments

Income Tax Assessment Act 1997

Division 2--Consequential amendments

Income Tax Assessment Act 1997

Division 3--Application of amendments

Income Tax (Transitional Provisions) Act 1997

Schedule 3--GST financial supply provisions

Part 1--Increasing financial acquisitions threshold

A New Tax System (Goods and Services Tax) Act 1999

Part 2--Treatment of borrowings

A New Tax System (Goods and Services Tax) Act 1999

Part 3--Hire purchase agreements

A New Tax System (Goods and Services Tax) Act 1999

Schedule 4--New residential premises

Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011 ii

Part 1--Amendments

A New Tax System (Goods and Services Tax) Act 1999

Part 2--Application of amendments

Schedule 5--Deductible gift recipients

Income Tax Assessment Act 1997

Schedule 6--Miscellaneous amendments

Part 1--Corrections to cross-references

Division 1--Income Tax Assessment Act 1936

Division 2--Income Tax Assessment Act 1997

Division 3--Citizenship

Income Tax Assessment Act 1997

Tax Laws Amendment (2006 Measures No. 3) Act 2006

Division 4--Tax-related liabilities

Income Tax Assessment Act 1997

Part 2--Repeal of references to Cultural Bequests Program and

redundant subsection numbers

Division 1--Cultural Bequests Program

Income Tax Assessment Act 1997

Income Tax (Transitional Provisions) Act 1997

Division 2--Redundant subsection numbers

A New Tax System (Medicare Levy Surcharge--Fringe Benefits) Act

1999

Superannuation Industry (Supervision) Act 1993

Superannuation (Self Managed Superannuation Funds) Supervisory

Levy Imposition Act 1991

Part 3--List of tax offsets

Income Tax Assessment Act 1997

Part 4--Taxation Administration Act 1953

Part 5--Foreign superannuation funds

Division 1--Pensions and annuities

Income Tax Assessment Act 1936

iii Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011

Division 2--Superannuation lump sums

Income Tax (Transitional Provisions) Act 1997

Part 6--Asterisks

Division 1--A New Tax System (Wine Equalisation Tax) Act 1999

Division 2--Trading stock and revenue assets

Income Tax Assessment Act 1997

Division 3--Other amendments

Income Tax Assessment Act 1997

Part 7--References to Acts

A New Tax System (Goods and Services Tax) Act 1999

Income Tax Assessment Act 1997

Taxation Administration Act 1953

Part 8--Extensions of time

Income Tax Assessment Act 1997

Part 9--Cessation of membership of GST groups etc.

A New Tax System (Goods and Services Tax) Act 1999

Part 10--Small business participation percentage

Division 1--Companies

Income Tax Assessment Act 1997

Division 2--Discretionary trusts

Income Tax Assessment Act 1997

Part 11--Exempt income

Division 1--Repeal of spent provisions

Income Tax Assessment Act 1997

Division 2--Lists of exempt income

Income Tax Assessment Act 1997

Division 3--Australian Victim of Terrorism Overseas Payment

Income Tax Assessment Act 1997

Division 4--Amendments contingent on the Clean Energy

(Household Assistance Amendments) Act 2011

Clean Energy (Household Assistance Amendments) Act 2011

Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011 iv

Income Tax Assessment Act 1997

Part 12--Complying superannuation/FHSA life insurance

policies

Division 1--Virtual PST life insurance policies

Income Tax (Transitional Provisions) Act 1997

Division 2--Complying superannuation/FHSA life insurance policies

Income Tax (Transitional Provisions) Act 1997

Part 13--Applications for tax file numbers

Income Tax Assessment Act 1936

Part 14--Taxable professional income

Income Tax Assessment Act 1997

Part 15--Consolidated groups

Division 1--Partnerships

Income Tax Assessment Act 1997

Division 2--Amendments applying from 1 July 2002

Income Tax Assessment Act 1997

Part 16--Demutualisation

Income Tax Assessment Act 1997

Part 17--Mining and quarrying definitions

Income Tax Assessment Act 1997

Part 18--BAS amount

Income Tax Assessment Act 1997

Part 19--Corporate tax rate

Income Tax Assessment Act 1997

Taxation Administration Act 1953

Part 20--UK wounds and disability pension

Income Tax Assessment Act 1997

Part 21--Repeal of redundant provisions

A New Tax System (Goods and Services Tax) Act 1999

Income Tax Rates Act 1986

v Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011

Taxation Administration Act 1953

Part 22--Limited amendment period

Income Tax Assessment Act 1936

Part 23--Definition of managed investment trust

Tax Laws Amendment (2010 Measures No. 3) Act 2010

Part 24--Equivalent foreign collective investment vehicles

Taxation Administration Act 1953

Part 25--Self managed superannuation funds

Division 1--Definition of self managed superannuation fund

Superannuation Industry (Supervision) Act 1993

Division 2--References to self managed superannuation funds

Income Tax Assessment Act 1997

Superannuation Industry (Supervision) Act 1993

Taxation Administration Act 1953

Part 26--Untaxed plan cap

Income Tax Assessment Act 1997

Part 27--Correction of typographical errors

Income Tax Assessment Act 1997

Taxation Administration Act 1953

Part 28--Foreign income tax offset, Medicare levy and

surcharge

Income Tax Assessment Act 1936

Income Tax Assessment Act 1997

Taxation Administration Act 1953

100

Taxation (Interest on Overpayments and Early Payments) Act 1983

101

Part 29--Adjusted tax

102

Taxation Administration Act 1953

102

Part 30--Section 109CA of the Income Tax Assessment Act

1936

103

Income Tax Assessment Act 1936

103

Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011 1

A Bill for an Act to amend the law relating to

taxation and superannuation, and for other

purposes

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Tax Laws Amendment (2011

Measures No. 9) Act 2011.

2 Commencement

(1) Each provision of this Act specified in column 1 of the table

commences, or is taken to have commenced, in accordance with

column 2 of the table. Any other statement in column 2 has effect

according to its terms.

2 Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011

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 this Act receives the Royal Assent.

2. Schedule 1

The day after this Act receives the Royal

Assent.

3. Schedule 2

The day this Act receives the Royal Assent.

4. Schedule 3

1 July 2012.

1 July 2012

5. Schedules 4

and 5

The day this Act receives the Royal Assent.

6. Schedule 6,

Part 1,

Divisions 1 and 2

The day this Act receives the Royal Assent.

7. Schedule 6,

item 7

At the same time as item 42 of Schedule 1 to

the Australian Citizenship (Transitionals

and Consequentials) Act 2007 commences.

1 July 2007

8. Schedule 6,

items 8 and 9

Immediately after the commencement of

section 2 of the Tax Laws Amendment (2006

Measures No. 3) Act 2006.

30 June 2006

9. Schedule 6,

Part 1, Division 4

At the same time as item 29 of Schedule 1 to

the Tax Laws Amendment (Transfer of

Provisions) Act 2010 commences.

1 July 2010

10. Schedule 6,

Parts 2 and 3

The day this Act receives the Royal Assent.

11. Schedule 6,

Part 4

Immediately after the commencement of

item 1 of Schedule 1 to the A New Tax

System (Pay As You Go) Act 1999.

22 December

1999

12. Schedule 6,

Part 5, Division 1

Immediately after the commencement of

item 140 of Schedule 1 to the

Superannuation Legislation Amendment

(Simplification) Act 2007.

15 March 2007

13. Schedule 6,

Part 5, Division 2

The day this Act receives the Royal Assent.

14. Schedule 6,

Parts 6 to 8

The day this Act receives the Royal Assent.

Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011 3

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

15. Schedule 6,

Part 9

The day after this Act receives the Royal

Assent.

16. Schedule 6,

Part 10,

Division 1

The day after this Act receives the Royal

Assent.

17. Schedule 6,

Part 10,

Division 2

Immediately after the commencement of the

provision(s) covered by table item 16.

18. Schedule 6,

Part 11,

Division 1

The day this Act receives the Royal Assent.

19. Schedule 6,

Part 11,

Division 2

Immediately after the commencement of the

provision(s) covered by table item 18.

20. Schedule 6,

Part 11,

Division 3

The later of:

(a) immediately after the commencement of

the provision(s) covered by table

item 19; and

(b) the commencement of item 17 of

Schedule 1 to the Social Security

Amendment (Supporting Australian

Victims of Terrorism Overseas) Act

2011.

However, the provision(s) do not commence

at all if the event mentioned in paragraph (b)

does not occur.

21. Schedule 6,

item 144

Immediately after the commencement of

item 16 of Schedule 10 to the Clean Energy

(Household Assistance Amendments) Act

2011.

However, the provision(s) do not commence

at all if that item 16 commences before or at

the same time as the provision(s) covered by

table item 18.

22. Schedule 6,

item 145

Immediately after the commencement of

item 2 of Schedule 10 to the Clean Energy

(Household Assistance Amendments) Act

14 May 2012

4 Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

2011.

23. Schedule 6,

items 146 to 148

Immediately after the commencement of the

provision(s) covered by table item 19.

However, the provision(s) do not commence

at all if item 2 of Schedule 10 to the Clean

Energy (Household Assistance Amendments)

Act 2011 does not commence before that

time.

24. Schedule 6,

Part 12,

Division 1

The day this Act receives the Royal Assent.

25. Schedule 6,

Part 12,

Division 2

Immediately after the commencement of the

provision(s) covered by table item 24.

26. Schedule 6,

Part 13

The day after this Act receives the Royal

Assent.

27. Schedule 6,

Parts 14 to 18

The day this Act receives the Royal Assent.

28. Schedule 6,

item 179

At the same time as item 169 of Schedule 3

to the Tax Laws Amendment (2008 Measures

No. 4) Act 2008 commences.

3 October 2008

29. Schedule 6,

item 180

Immediately after the commencement of

item 115 of Schedule 5 to the Tax Laws

Amendment (2010 Measures No. 1) Act

2010.

3 June 2010

30. Schedule 6,

items 181 and 182

At the same time as item 169 of Schedule 3

to the Tax Laws Amendment (2008 Measures

No. 4) Act 2008 commences.

3 October 2008

31. Schedule 6,

Parts 20 to 31

The day this Act receives the Royal Assent.

Note:

This table relates only to the provisions of this Act as originally

enacted. It will not be amended to deal with any later amendments of

this Act.

(2) Any information in column 3 of the table is not part of this Act.

Information may be inserted in this column, or information in it

may be edited, in any published version of this Act.

Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011 5

3 Schedule(s)

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.

4 Amendment of assessments

(1) Section 170 of the Income Tax Assessment Act 1936 does not

prevent the amendment of an assessment if:

(a) the assessment was made before the commencement of Part 8

of Schedule 6 to this Act; and

(b) the amendment is made within 2 years after that

commencement; and

that Part.

(2) Section 170 of the Income Tax Assessment Act 1936 does not

prevent the amendment of an assessment if:

(a) the assessment was made before the commencement of

Division 1 of Part 10 of Schedule 6 to this Act; and

(b) the amendment is made within 2 years after that

commencement; and

that Division.

(3) Section 170 of the Income Tax Assessment Act 1936 does not

prevent the amendment of an assessment if:

(a) the assessment was made before the commencement of

Division 2 of Part 10 of Schedule 6 to this Act; and

(b) the amendment is made within 2 years after that

commencement; and

that Division.

Schedule 1 Form for portability of superannuation

6 Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011

Schedule 1--Form for portability of

superannuation

Retirement Savings Accounts Act 1997

1 Subparagraph 3(1)(a)(ii)

Repeal the subparagraph, substitute:

(ii) Division 4 of Part 4 (Other provisions relating to the

operation of RSAs); and

2 Subparagraph 3(1)(a)(iii)

Omit "Divisions 2 and 4A", substitute "the provisions mentioned in

subparagraph (e)(ii)".

3 Paragraph 3(1)(e)

Repeal the paragraph, substitute:

(e) the Commissioner of Taxation has the general administration

of:

(i) Division 3 of Part 4 (Portability forms); and

(ii) Division 2 of Part 11, section 138A, Division 4A of

Part 11 and subsection 144(1A) (about tax file

numbers).

4 Subsection 3(1) (note)

Omit "paragraph (e) is that people who acquire information under

Divisions 2 and 4A of Part 11", substitute "a provision being

administered by the Commissioner of Taxation (see paragraph (e)) is

that people who acquire information under the provision".

5 Section 16 (at the end of the definition of Regulator)

Add:

; and (c) the Commissioner of Taxation, if the provision in which it

occurs is, or is being applied for the purposes of, a provision

that is administered by the Commissioner of Taxation.

6 Before section 37

Insert:

Form for portability of superannuation Schedule 1

Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011 7

Division 1--Object of Part

7 Before section 38

Insert:

Division 2--Operating standards

8 After section 39

Insert:

Division 3--Portability forms

39A Portability forms

(1) For the purposes of standards made under Division 2, and without

limiting that Division, the regulations may prescribe a scheme

under which:

(a) the holder of an RSA gives to the Commissioner of Taxation

a request for the benefits held for the holder in the RSA to be

rolled-over or transferred; and

(b) the Commissioner may pass the request on to the provider of

the RSA.

Note:

The standards may require the provider to act on the request. See

paragraph 38(2)(h).

(2) The regulations may provide that the request must be given to the

Commissioner in the approved form.

Note:

The approved form may require the holder to set out his or her tax file

number. See subsection 144(2A).

Division 4--Other provisions relating to the operation of

RSAs

9 At the end of Division 3 of Part 11

Add:

Schedule 1 Form for portability of superannuation

8 Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011

138A Portability forms

Requesting tax file numbers

(1) The Commissioner of Taxation may request a holder of an RSA to

quote the holder's tax file number to the Commissioner in

connection with the operation, or the possible future operation, of a

scheme prescribed for the purposes of section 39A (Portability

forms).

(2) The holder is not obliged to comply with the request, but the

regulations made for the purposes of that section may provide that

failure to comply with the request affects whether the

Commissioner may pass a request on to the provider of the RSA

under the prescribed scheme.

Passing on tax file numbers

(3) The Commissioner of Taxation may inform the provider of an RSA

of the tax file number of a holder of the RSA as part of the

Commissioner passing on to the provider a request made by the

holder under a scheme prescribed for the purposes of section 39A

(Portability forms).

(4) If the Commissioner does so, the holder is:

(a) taken to have quoted the tax file number to the provider in

connection with the operation or the possible future operation

of this Act and the other Superannuation Acts; and

(b) taken to have quoted that tax file number at the time when

the Commissioner of Taxation informs the provider of the tax

file number.

10 After subsection 144(2)

Insert:

Portability forms

(2A) An approved form mentioned in subsection 39A(2) may require the

tax file number of the holder making the relevant request to be set

out in the request.

Form for portability of superannuation Schedule 1

Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011 9

Superannuation Industry (Supervision) Act 1993

11 Subparagraph 6(1)(a)(xii)

Omit "(except Division 1)".

12 Paragraph 6(1)(b)

After "paragraph (f)", insert "or (g)".

13 Paragraph 6(1)(g)

Repeal the paragraph, substitute:

(g) the Commissioner of Taxation also has the general

administration of:

(i) Division 3 of Part 3 (Portability forms); and

(ii) Division 1 of Part 25A, section 299NA, Division 3A of

Part 25A and subsection 299U(2A) (about tax file

numbers).

14 Subsection 6(1) (note)

Omit "paragraphs (e), (f) and (g) is that people who acquire information

under those provisions (to the extent that they relate to self-managed

superannuation funds)", substitute "a provision being administered by

the Commissioner of Taxation (see paragraphs (e), (f) and (g)) is that

people who acquire information under the provision".

15 Before section 30

Insert:

Division 1--Object of Part

16 Before section 31

Insert:

Division 2--Operating standards

17 At the end of Part 3

Add:

Schedule 1 Form for portability of superannuation

10 Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011

Division 3--Portability forms

34A Portability forms

(1) For the purposes of standards made under Division 2, and without

limiting that Division, the regulations may prescribe a scheme

under which:

(a) a beneficiary of:

(i) a regulated superannuation fund; or

(ii) an approved deposit fund;

gives to the Commissioner of Taxation a request for the

benefits held for the beneficiary in the fund to be rolled-over

or transferred; and

(b) the Commissioner may pass the request on to the trustee of

the fund.

Note:

The standards may require the trustee to act on the request. See

paragraphs 31(2)(i) and 32(2)(d).

(2) The regulations may provide that the request must be given to the

Commissioner in the approved form.

Note:

The approved form may require the beneficiary to set out his or her

tax file number. See subsection 299U(2A).

18 At the end of Division 2 of Part 25A

Add:

299NA Portability forms

Requesting tax file numbers

(1) The Commissioner of Taxation may request a beneficiary of:

(a) a regulated superannuation fund; or

(b) an approved deposit fund;

to quote the beneficiary's tax file number to the Commissioner in

connection with the operation, or the possible future operation, of a

scheme prescribed for the purposes of section 34A (Portability

forms).

(2) The beneficiary is not obliged to comply with the request, but the

regulations made for the purposes of that section may provide that

failure to comply with the request affects whether the

Form for portability of superannuation Schedule 1

Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011 11

Commissioner may pass a request on to the trustee of the fund

under the prescribed scheme.

Passing on tax file numbers

(3) The Commissioner of Taxation may inform the trustee of:

(a) a regulated superannuation fund; or

(b) an approved deposit fund;

of the tax file number of a beneficiary of the fund as part of the

Commissioner passing on to the trustee a request made by the

beneficiary under a scheme prescribed for the purposes of

section 34A (Portability forms).

(4) If the Commissioner does so, the beneficiary is:

(a) taken to have quoted the tax file number to the trustee in

connection with the operation or the possible future operation

of this Act and the other Superannuation Acts; and

(b) taken to have quoted that tax file number at the time when

the Commissioner informs the trustee of the tax file number.

19 After subsection 299U(2)

Insert:

Portability forms

(2A) An approved form mentioned in subsection 34A(2) may require the

tax file number of the beneficiary making the relevant request to be

set out in the request.

Schedule 2 Capital gains tax and certain business restructures

Part 1 Share and interest sale facilities for foreign interest holders in a restructure

12 Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011

Schedule 2--Capital gains tax and certain

business restructures

Part 1--Share and interest sale facilities for foreign

interest holders in a restructure

Income Tax Assessment Act 1997

1 At the end of Subdivision 124-A

Add:

124-20 Share and interest sale facilities

Share and interest sale facilities

(1) An entity (the investor) is treated as owning an

ownership interest

(the roll-over interest) in a company or trust (the issuer) at a time

(the deeming time), if:

(a) the investor owned an ownership interest (the original

interest) in a company or trust; and

(b) a transaction happened in relation to the original interest; and

(c)

because:

(i)

foreign law impedes the ability of the issuer to issue

or transfer the roll-over interest to the investor; or

(ii) it would be impractical or unreasonably onerous to

determine whether a foreign law impedes the ability of

the issuer to issue or transfer the roll-over interest to the

investor;

arranged that the issuer will issue or transfer the

roll-over interest to another entity (the facility) under the

transaction instead of to the investor; and

(d) in accordance with that arrangement and as a result of the

transaction, the facility:

(i) becomes the owner of the roll-over interest; and

(ii) owns the roll-over interest at the deeming time; and

(e) under the arrangement, the investor is entitled to receive from

the facility:

Capital gains tax and certain business restructures Schedule 2

Share and interest sale facilities for foreign interest holders in a restructure Part 1

Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011 13

(i) an amount equivalent to the

capital proceeds of any

CGT event that happens in relation to the roll-over

interest (less expenses); or

(ii) if a CGT event happens in relation to the roll-over

interest together with CGT events happening in relation

to other ownership interests--an amount equivalent to

the investor's proportion of the total capital proceeds of

the CGT events (less expenses).

(2) The facility is treated as not owning the roll-over interest at the

deeming time.

(3) This section applies for the purposes of:

(a) applying one of the following provisions (the roll-over

provision) in relation to the transaction:

(i) Subdivision 124-G (Exchange of shares in one company

for shares in another company);

(ii) Subdivision 124-H (Exchange of units in a unit trust for

shares in a company);

(iii) Subdivision 124-I (Change of incorporation);

(iv) Subdivision 124-N (Disposal of assets by a trust to a

company);

(v) Subdivision 124-Q (Exchange of stapled ownership

interests for ownership interests in a unit trust); and

(b) the following provisions, to the extent that they relate to a

roll-over under the roll-over provision that involves the

transaction:

(i) item 2 of the table in subsection 115-30(1);

(ii) sections 124-10 and 124-15.

Incorporated bodies

(4) Without limiting this section, it also has effect, in a case covered

by subparagraph (3)(a)(iii) (about Subdivision 124-I), as if each

reference in this section to an

ownership interest in a company or

trust were a reference to:

(a) an interest in an incorporated body; and

(b) any rights relating to the body owned by the entity that owns

that interest.

Schedule 2 Capital gains tax and certain business restructures

Part 1 Share and interest sale facilities for foreign interest holders in a restructure

14 Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011

(5) This section applies, in a case covered by subparagraph (3)(a)(iii)

(about Subdivision 124-I), in relation to rights as a

member of a

company incorporated under the Corporations (Aboriginal and

Torres Strait Islander) Act 2006 in the same way as it applies in

relation to

shares in a company.

2 At the end of paragraphs 124-360(1)(c) and 124-370(1)(e)

Add:

Note:

See section 124-20 if an exchanging member uses a share sale

facility.

3 Subsections 124-382(3) and (4)

Repeal the subsections.

4 At the end of paragraphs 124-445(c) and 124-455(1)(e)

Add:

Note:

See section 124-20 if an exchanging member uses a share sale

facility.

5 Subsection 124-860(6) (note)

Omit "Note", substitute "Note 1".

6 At the end of subsection 124-860(6)

Add:

Note 2:

See section 124-20 if an entity uses an interest sale facility.

7 At the end of paragraph 124-1045(1)(d)

Add:

Note:

See section 124-20 if an exchanging member uses an interest sale

facility.

8 Section 124-1065

Repeal the section.

9 At the end of Division 125

Add:

Capital gains tax and certain business restructures Schedule 2

Share and interest sale facilities for foreign interest holders in a restructure Part 1

Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011 15

Subdivision 125-E--Miscellaneous

Table of sections

125-235 Share and interest sale facilities

125-235 Share and interest sale facilities

Share and interest sale facilities

(1) An entity (the investor) is treated as owning an

ownership interest

(the roll-over interest) in a

demerged entity at a time (the deeming

time), if:

(a) the investor owned an ownership interest in a company or

trust that was the

head entity of a

demerger group; and

(b)

demerger happens to the demerger group; and

(c)

because:

(i)

foreign law impedes the ability of a member of the

demerger group to issue or transfer the roll-over interest

to the investor; or

(ii) it would be impractical or unreasonably onerous to

determine whether a foreign law impedes the ability of a

member of the demerger group to issue or transfer the

roll-over interest to the investor;

arranged that the member will issue or transfer the

roll-over interest to another entity (the facility) under the

demerger instead of to the investor; and

(d) in accordance with that arrangement and as a result of the

demerger, the facility:

(i) becomes the owner of the roll-over interest (which is a

new or replacement interest in the demerged entity); and

(ii) owns the roll-over interest at the deeming time; and

(e) under the arrangement, the investor is entitled to receive from

the facility:

(i) an amount equivalent to the

capital proceeds of any

CGT event that happens in relation to the roll-over

interest (less expenses); or

(ii) if a CGT event happens in relation to the roll-over

interest together with CGT events happening in relation

to other ownership interests--an amount equivalent to

Schedule 2 Capital gains tax and certain business restructures

Part 1 Share and interest sale facilities for foreign interest holders in a restructure

16 Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011

the investor's proportion of the total capital proceeds of

the CGT events (less expenses).

(2) The facility is treated as not owning the roll-over interest at the

deeming time.

(3) This section applies for the purposes of:

(a) applying this Division in relation to the demerger; and

(b) item 2 of the table in subsection 115-30(1), to the extent that

it relates to a roll-over under this Division that involves the

demerger.

10 At the end of Subdivision 126-G

Add:

126-265 Interest sale facilities

Interest sale facilities

(1) For the purposes of this Subdivision, an entity (the investor) is

treated as owning a

membership interest (the roll-over interest) in

the receiving trust at a time (the deeming time), if:

(a) the investor owned a membership interest in the transferring

trust; and

(b) a trust is created, or a transfer happens, (the transaction) as

mentioned in paragraph 126-225(1)(a) in relation to

CGT

assets of the transferring trust; and

(c)

because:

(i)

foreign law impedes the ability of the receiving trust

to issue or transfer the roll-over interest to the investor;

(ii) it would be impractical or unreasonably onerous to

determine whether a foreign law impedes the ability of

the receiving trust to issue or transfer the roll-over

interest to the investor;

arranged that the receiving trust will issue or transfer the

roll-over interest to another entity (the facility) under the

transaction instead of to the investor; and

(d) in accordance with that arrangement and as a result of the

transaction, the facility:

(i) becomes the owner of the roll-over interest; and

Capital gains tax and certain business restructures Schedule 2

Share and interest sale facilities for foreign interest holders in a restructure Part 1

Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011 17

(ii) owns the roll-over interest at the deeming time; and

(e) under the arrangement, the investor is entitled to receive from

the facility:

(i) an amount equivalent to the

capital proceeds of any

CGT event that happens in relation to the roll-over

interest (less expenses); or

(ii) if a CGT event happens in relation to the roll-over

interest together with CGT events happening in relation

to other membership interests--an amount equivalent to

the investor's proportion of the total capital proceeds of

the CGT events (less expenses).

(2) The facility is treated as not owning the roll-over interest at the

deeming time.

11 Application of amendments

The amendments made by this Part apply to CGT events happening

after 7.30 pm (by legal time in the Australian Capital Territory) on

11 May 2010.

Schedule 2 Capital gains tax and certain business restructures

Part 2 CGT demerger relief

18 Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011

Part 2--CGT demerger relief

Income Tax Assessment Act 1997

12 After subsection 125-65(2)

Insert:

(2A) Neither a corporation sole nor a

complying superannuation entity

is a member of a

demerger group.

13 Paragraph 125-70(1)(g)

Omit "

superannuation fund", substitute "

non-complying

superannuation fund".

14 Application of amendments

The amendments made by this Part apply to CGT events happening

after 7.30 pm (by legal time in the Australian Capital Territory) on

11 May 2010.

Capital gains tax and certain business restructures Schedule 2

Roll-overs for change of incorporation Part 3

Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011 19

Part 3--Roll-overs for change of incorporation

Division 1--Main amendments

Income Tax Assessment Act 1997

15 Subdivision 124-I

Repeal the Subdivision, substitute:

Subdivision 124-I--Change of incorporation

Guide to Subdivision 124-I

124-510 What this Subdivision is about

Roll-over relief is available for members of a body that is

incorporated under one law and is converted to, or replaced with, a

body incorporated under another law.

Table of sections

Object of this Subdivision

124-515 Object of this Subdivision

Change of incorporation without change of entity

124-520 Change of incorporation without change of entity

Old corporation wound up

124-525 Old corporation wound up

Special consequences of some roll-overs

124-530 Shares in company replacing pre-CGT and post-CGT mix of interest and

rights in body

124-535 Rights as member of Indigenous corporation replacing pre-CGT and

post-CGT mix of interest and rights in body

Schedule 2 Capital gains tax and certain business restructures

Part 3 Roll-overs for change of incorporation

20 Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011

Object of this Subdivision

124-515 Object of this Subdivision

The object of this Subdivision is to ensure that CGT considerations

for

members of a body incorporated under a law do not impede a

change of incorporation involving converting the body to, or

replacing it with, a company incorporated under:

(a)

the

Corporations Act 2001 or a similar

foreign law; or

(b)

the

Corporations (Aboriginal and Torres Strait Islander) Act

2006.

Note:

Subdivision 620-A provides a roll-over for the assets of the body.

Change of incorporation without change of entity

124-520 Change of incorporation without change of entity

(1) This section applies if:

(a) you are a

member of a body incorporated under a law

described in column 1 of an item of the table; and

(b) the body is converted into a company incorporated under a

law described in column 2 of the item, without creating a

new legal entity; and

difference:

(i) between the ownership of the body, and of rights

relating to the body held by entities that owned the

body, just before the conversion and the ownership of

the company just after the conversion; or

(ii) between the mix of ownership of the body, and of rights

relating to the body held by entities that owned the

body, just before the conversion and the mix of

ownership of the company just after the conversion.

Note:

See section 124-20 if an entity uses a share or interest sale

facility.

Capital gains tax and certain business restructures Schedule 2

Roll-overs for change of incorporation Part 3

Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011 21

Laws the body and company are incorporated under

Column

Body incorporated under this law

Column 2

Company incorporated under this law

A law other than the Corporations

Act 2001 and a similar

foreign law

relating to companies

The Corporations Act 2001 or a similar

foreign law relating to companies

A law other than the Corporations

(Aboriginal and Torres Strait

Islander) Act 2006

The Corporations (Aboriginal and

Torres Strait Islander) Act 2006

(2) You can choose to obtain a roll-over if:

(a) as a result of the conversion you are issued with

shares in

the company and you receive nothing else; and

(b) either you are an Australian resident at the time of the

conversion or, if you are a foreign resident at that time:

(i) each of your interest and your other rights (if any)

relating to the body was

taxable Australian property

just before that time; and

(ii) the shares are taxable Australian property when they are

issued.

Note 1:

The roll-over consequences are set out in Subdivision 124-A and

section 124-530.

Note 2:

Section 103-25 tells you when you have to make the choice.

(3) If the company is incorporated under the Corporations (Aboriginal

and Torres Strait Islander) Act 2006, subsection (2) applies in

relation to rights as a

member of the company in the same way as

that subsection applies to

shares in a company.

Note:

This may allow you to choose to obtain a roll-over. The roll-over

consequences are set out in Subdivision 124-A and section 124-535.

Exception for demutualisation of certain bodies

(4) This section does not apply to demutualisation of a body if

Division 326 in Schedule 2H to the Income Tax Assessment Act

1936 applies to the demutualisation.

Note:

That Division deals with demutualisation of entities other than

insurance companies and health insurers.

Schedule 2 Capital gains tax and certain business restructures

Part 3 Roll-overs for change of incorporation

22 Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011

Old corporation wound up

124-525 Old corporation wound up

(1) This section applies if:

(a) a body is incorporated under a law described in column 1 of

an item of the table; and

(b) a company is incorporated under a law described in column 2

of the item; and

after the time (the switch time) the

members of the body

receive

shares in the company, or rights as members of it if

it is incorporated under the Corporations (Aboriginal and

Torres Strait Islander) Act 2006, on account of:

(i) their interests in the body; and

(ii) their other rights (if any) relating to the body; and

(d) the members of the body do not receive anything else on

account of the expected ending of those interests and rights;

and

(e) it is reasonable to conclude that there is no significant

difference:

(i) between the ownership of the body, and of rights

relating to the body held by entities that owned the

body, just before the switch time and the ownership of

the company just after the switch time; or

(ii) between the mix of ownership of the body, and of rights

relating to the body held by entities that owned the

body, just before the switch time and the mix of

ownership of the company just after the switch time;

and

Note:

See section 124-20 if an entity uses a share or interest sale

facility.

(f)

the

body

disposes of all its

CGT assets to the company,

except any assets expected to be needed to meet the body's

existing or expected liabilities before it ceases to exist.

Capital gains tax and certain business restructures Schedule 2

Roll-overs for change of incorporation Part 3

Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011 23

Laws the body and company are incorporated under

Column

Body incorporated under this law

Column 2

Company incorporated under this law

A law other than the Corporations

Act 2001 and a similar

foreign law

relating to companies

The Corporations Act 2001 or a similar

foreign law relating to companies

A law other than the Corporations

(Aboriginal and Torres Strait

Islander) Act 2006

The Corporations (Aboriginal and

Torres Strait Islander) Act 2006

(2) You can choose to obtain a roll-over if:

(a) you were a

member of the body just before the switch time;

and

(b) your ownership of your interest in the body ends at a time

(the end time) after the switch time; and

shares in the company that you

received at the switch time; and

(d) either you are an Australian resident at the end time or, if you

are a foreign resident at the end time:

(i) each of your interest in the body and your other rights

(if any) relating to the body was

taxable Australian

property just before the end time; and

(ii) the shares in the company that you received at the

switch time are taxable Australian property at the end

time.

Note 1:

The roll-over consequences are set out in Subdivision 124-A and

section 124-530.

Note 2:

Section 103-25 tells you when you have to make the choice.

(3) If the company is incorporated under the Corporations (Aboriginal

and Torres Strait Islander) Act 2006, subsection (2) applies in

relation to rights as a

member of the company in the same way as

that subsection applies to

shares in a company.

Note:

This may allow you to choose to obtain a roll-over. The roll-over

consequences are set out in Subdivision 124-A and section 124-535.

Schedule 2 Capital gains tax and certain business restructures

Part 3 Roll-overs for change of incorporation

24 Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011

Special consequences of some roll-overs

124-530 Shares in company replacing pre-CGT and post-CGT mix

of interest and rights in body

(1) This section applies if:

(a) you choose to obtain a roll-over under section 124-520 or

124-525 relating to

shares you have in the company on

account of the following (your original assets):

(i) your interest in the body mentioned in that section;

(ii) your other rights relating to the body mentioned in that

section; and

(b)

you

acquired some of your original assets before

20 September 1985 and the rest of them on or after that day.

(2) You are taken to have

acquired so many of the

shares before

20 September 1985 as is reasonable, having regard to:

(a) the number and

market value of your original assets; and

(b) the number and market value of the shares.

(3) The first element of the

cost base of each of the

shares not taken

by subsection (2) to have been

acquired before 20 September

1985 (your post-CGT shares) is such amount as is reasonable

having regard to:

(a) the total of the cost bases of your original assets that you

acquired on or after 20 September 1985; and

(b) the number and

market value of your post-CGT shares.

(4) The reduced cost base of each of your post-CGT shares is worked

out similarly.

(5) This section has effect despite subsections 124-15(5) and (6).

124-535 Rights as member of Indigenous corporation replacing

pre-CGT and post-CGT mix of interest and rights in body

(1) This section applies if:

(a) you choose to obtain a roll-over under section 124-520 or

124-525 relating to rights (the replacement rights) you have

as a

member of a company incorporated under the

Capital gains tax and certain business restructures Schedule 2

Roll-overs for change of incorporation Part 3

Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011 25

Corporations (Aboriginal and Torres Strait Islander) Act

2006 on account of the following (your original assets):

(i) your interest in the body mentioned in that section;

(ii) your other rights relating to the body mentioned in that

section; and

(b)

you

acquired any of your original assets before

20 September 1985.

(2) You are taken to have

acquired the replacement rights before

20 September 1985.

(3) This section has effect despite subsection 124-15(5).

16 Before Part 3-90

Insert:

Part 3-80--Roll-overs applying to assets generally

Division 620--Assets of wound-up corporation passing to

corporation with not significantly different

ownership

Table of Subdivisions

620-A Corporations covered by Subdivision 124-I

Subdivision 620-A--Corporations covered by Subdivision 124-I

Guide to Subdivision 620-A

620-5 What this Subdivision is about

There are tax-neutral consequences of a body, that is incorporated

under one law and ceases to exist, disposing of an asset to a

company incorporated under another law, if the ownership of the

company is not significantly different from the ownership of the

body.

Table of sections

Schedule 2 Capital gains tax and certain business restructures

Part 3 Roll-overs for change of incorporation

26 Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011

Application and object of this Subdivision

620-10 Application

620-15 Object

CGT consequences

620-20

Disregard body's capital gains and losses from CGT assets

620-25

Cost base and pre-CGT status of CGT asset for company

Consequences for depreciating assets

620-30

Roll-over relief for balancing adjustment events

Consequences for trading stock

620-40

Body taken to have sold trading stock to company

Consequences for revenue assets

620-50

Body taken to have sold revenue assets to company

Application and object of this Subdivision

620-10 Application

This Subdivision applies to a body that is incorporated under one

law and ceases to exist, and to a company incorporated under

another law, if section 124-525 applies in relation to the body and

the company.

Note:

That section applies if the ownership of the company is not

significantly different from the ownership of the body and rights

relating to the body.

620-15 Object

The object of this Subdivision is to ensure tax-neutral

consequences when the body ceases to hold an asset and also if the

asset becomes held by the company.

CGT consequences

620-20 Disregard body's capital gains and losses from CGT assets

(1) This section applies if:

Capital gains tax and certain business restructures Schedule 2

Roll-overs for change of incorporation Part 3

Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011 27

(a)

the

body

disposes of a

CGT asset to the company because

the body ceases to exist; or

(b)

another

CGT event happens to a CGT asset of the body

because the body ceases to exist.

(2)

capital gain or a

capital loss the body makes from the

CGT

asset is disregarded.

620-25 Cost base and pre-CGT status of CGT asset for company

(1) This section applies to a

CGT asset if the body

disposes of it to

the company because the body ceases to exist.

(2) The first element of the

CGT asset's

cost base for the company is

equal to the asset's cost base for the body in connection with the

disposal.

(3) The first element of the

CGT asset's

reduced cost base for the

company is worked out similarly.

(4)

the

body

acquired the

CGT asset before 20 September 1985,

the company is taken to have acquired the CGT asset before that

day.

Consequences for depreciating assets

620-30 Roll-over relief for balancing adjustment events

(1) This section applies if:

(a) there is a

balancing adjustment event because the body

disposes of a

depreciating asset in an income year to the

company because the body ceases to exist; and

(b) the disposal involves a

CGT event.

(2) This Act applies as if:

(a) there were roll-over relief under subsection 40-340(1) for the

balancing adjustment event; and

(b) the body were the transferor mentioned in that subsection and

subsection 328-243(1A); and

and subsection 328-243(1A).

Note:

Some effects of this are as follows:

Schedule 2 Capital gains tax and certain business restructures

Part 3 Roll-overs for change of incorporation

28 Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011

(a) the balancing adjustment event does not affect the body's

assessable income or deductions (see subsection 40-345(1));

(b) the company can deduct for the decline in value of the asset on

the same basis as the body did (see subsection 40-345(2));

company as if it had done the things the body did (see subsection

40-350(1)).

(3) Disregard paragraph 328-243(1A)(c) in determining whether

subsection 328-243(1A) applies.

Consequences for trading stock

620-40 Body taken to have sold trading stock to company

(1) This subsection applies to each item of

trading stock that the body

disposes of to the company because the body ceases to exist.

(2) The body is taken to have sold, and the company is taken to have

bought, the item (in the ordinary course of

business and dealing

with each other at arm's length), at the time of the disposal (or just

before that time if the disposal occurred when the body ceased to

exist), for:

(a)

the

cost of the item for the body; or

(b) if the body held the item as

trading stock at the start of the

income year, the

value of the item for the body then.

(3) The company is taken to have held the item as

trading stock when

it bought the item.

Consequences for revenue assets

620-50 Body taken to have sold revenue assets to company

Disposal

(1) Subsections (2) and (3) apply to a

CGT asset:

(a) that the body

disposes of to the company because the body

ceases to exist; and

(b) that is a

revenue asset of the body just before the disposal.

Note:

Trading stock and depreciating assets are not revenue assets. See

section 977-50.

Capital gains tax and certain business restructures Schedule 2

Roll-overs for change of incorporation Part 3

Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011 29

(2) The body is taken to have disposed of the

revenue asset to the

company for an amount such that the body would not make a profit

or a loss on the disposal.

(3) For the purpose of calculating any profit or loss on a future

disposal of, cessation of owning, or other realisation of, the

revenue asset, the company is taken to have paid the body that

amount for the disposal of the revenue asset to the company.

Ceasing to own or other realising

(4) Subsection (5) applies to a

CGT asset:

(a) that the body ceases to own, or otherwise realises, because

the body ceases to exist; and

(b) that is a

revenue asset of the body just before the cessation

or realisation.

Note:

Trading stock and depreciating assets are not revenue assets. See

section 977-50.

(5) The body is taken to have disposed of the

revenue asset for an

amount such that the body would not make a profit or a loss on the

disposal.

Division 2--Consequential amendments

Income Tax Assessment Act 1997

17 Subsection 40-340(1) (note)

Omit "Note:", substitute "Note 1:".

18 At the end of subsection 40-340(1)

Add:

Note 2:

This Act also applies as if there were roll-over relief under this

subsection in the circumstances set out in section 620-30 (which is

about a body incorporated under one law ceasing to exist and

disposing of its assets to a company incorporated under another law

that has not significantly different ownership).

19 At the end of subsection 70-80(1)

Add:

Note:

An incorporated body is treated as disposing of an item of its trading

stock in the ordinary course of business if the body ceases to exist and

Schedule 2 Capital gains tax and certain business restructures

Part 3 Roll-overs for change of incorporation

30 Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011

disposes of the asset to a company that has not significantly different

ownership: see Division 620.

20 After section 112-53AA

Insert:

112-53AB Change of incorporation

Change of incorporation

Item

In this situation:

Element affected:

See section:

Shares in company that has

changed its incorporation or

has ownership not

significantly different from

that of a former body

incorporated under another

law

First element of cost base

and reduced cost base

124-530

21 Section 112-97 (at the end of the table)

Add:

A CGT asset is held by a

company that has ownership

not significantly different

from that of a former body

that held the asset and was

incorporated under another

law

First element of cost base

and reduced cost base

Section 620-2

22 Section 112-115 (cell at table item 11, column headed "For

the rules about this roll-over:")

Repeal the cell, substitute:

Change of incorporation

23 Section 112-150 (at the end of the table)

Add:

Corporations covered by Subdivision 124-I

sections 620-10,

620-15, 620-20 and

620-25

Capital gains tax and certain business restructures Schedule 2

Roll-overs for change of incorporation Part 3

Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011 31

Division 3--Application of amendments

Income Tax (Transitional Provisions) Act 1997

24 At the end of Division 124

Add:

Subdivision 124-I--Change of incorporation

Table of sections

124-510 Application of Subdivision 124-I of the Income Tax Assessment Act 1997

124-510 Application of Subdivision 124-I of the Income Tax

Assessment Act 1997

Subdivision 124-I of the Income Tax Assessment Act 1997, as

amended by Schedule 2 to the Tax Laws Amendment (2011

Measures No. 9) Act 2011, applies to CGT events happening after

7.30 pm (by legal time in the Australian Capital Territory) on

11 May 2010.

25 After Part 3-45

Insert:

Part 3-80--Roll-overs applying to assets generally

Division 620--Assets of wound-up corporation passing to

corporation with not significantly different

ownership

Table of Subdivisions

620-A Corporations covered by Subdivision 124-I

Subdivision 620-A--Corporations covered by Subdivision 124-I

Table of sections

620-10

Application of Subdivision 620-A of the Income Tax Assessment Act 1997

GST financial supply provisions Schedule 3

Increasing financial acquisitions threshold Part 1

Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011 33

Schedule 3--GST financial supply provisions

Part 1--Increasing financial acquisitions threshold

A New Tax System (Goods and Services Tax) Act 1999

1 Paragraphs 189-5(1)(a) and (2)(a)

Omit "$50,000", substitute "$150,000".

2 Paragraphs 189-10(1)(a) and (2)(a)

Omit "$50,000", substitute "$150,000".

3 Application of amendments

The amendments made by this Part apply for working out whether you

exceed the financial acquisitions threshold at a time during July 2012 or

a later month.

Schedule 3 GST financial supply provisions

Part 2 Treatment of borrowings

34 Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011

Part 2--Treatment of borrowings

A New Tax System (Goods and Services Tax) Act 1999

4 Paragraph 11-15(5)(a)

After "borrowing", insert "(other than through a

deposit account you

make available)".

5 Section 195-1

Insert:

deposit account: an account is a deposit account if:

(a) the account is made available by an Australian ADI (within

the meaning of the Corporations Act 2001) in the course of

carrying on a banking business (within the meaning of the

Banking Act 1959); and

(b) amounts credited to the account represent money taken by the

ADI on deposit (other than as part-payment for identified

goods or services); and

(as defined in section 9 of the Corporations Act 2001) of the

ADI.

6 Application of amendments

The amendments made by this Part apply in relation to acquisitions

made on or after 1 July 2012.

GST financial supply provisions Schedule 3

Hire purchase agreements Part 3

Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011 35

Part 3--Hire purchase agreements

A New Tax System (Goods and Services Tax) Act 1999

7 Section 29-39 (after table item 8A)

Insert:

8AA

Hire purchase agreements

Division 158

8 Section 29-69 (at the end of the table)

Add:

Hire purchase agreements

Division 158

9 After section 156-22

Insert:

156-23 Certain supplies or acquisitions under hire purchase

agreements treated as not on progressive or periodic basis

For the purposes of this Division, a supply or acquisition of goods

or credit under a

hire purchase agreement is treated as not being a

supply or acquisition made on a progressive or periodic basis.

10 After Division 157

Insert:

Division 158--Hire purchase agreements

158-1 What this Division is about

If you account on a cash basis, you are treated as if you do not

account on a cash basis for any acquisition made under a hire

purchase agreement.

158-5 Treat as not accounting on a cash basis

(1) This section applies if you

account on a cash basis.

(2) This Act and the regulations apply in relation to:

(a) an acquisition you make under a

hire purchase agreement; or

New residential premises Schedule 4

Amendments Part 1

Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011 37

Schedule 4--New residential premises

Part 1--Amendments

A New Tax System (Goods and Services Tax) Act 1999

1 Before subsection 40-75(1)

Insert:

When premises are new residential premises

2 At the end of subsection 40-75(1)

Add:

Paragraphs (b) and (c) have effect subject to paragraph (a).

Note 1:

For example, residential premises will be new residential premises if

they are created as described in paragraph (b) or (c) to replace earlier

premises that had ceased to be new residential premises because of

paragraph (a).

Note 2:

However, premises that are new residential premises because of

paragraph (b) or (c) will cease to be new residential premises once

they are sold, or supplied by way of long-term lease, as residential

premises (see paragraph (a)).

Note 3:

Premises created because of the registration of, for example, a strata

title plan, or a plan to subdivide land, may not become new residential

premises (see subsection (2AA)).

3 Subsection 40-75(2)

Omit "premises are not new residential premises", substitute

residential premises are not new residential premises".

4 Paragraph 40-75(2)(a)

Omit "

residential premises", substitute "residential premises".

5 After subsection 40-75(2)

Insert:

Subdivisions etc. may not result in new residential premises

(2AA) Despite subsection (1), the

residential premises are not new

residential premises if:

Schedule 4 New residential premises

Part 1 Amendments

38 Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011

(a) they are created from residential premises that became the

subject of a

property subdivision plan; and

(b) the residential premises referred to in paragraph (a) were not

new residential premises immediately before they became the

subject of that plan.

This subsection has effect subject to paragraphs (1)(b) and (c).

6 Before subsection 40-75(2A)

Insert:

Disregard certain supplies of the premises

7 Subsection 40-75(2A)

Omit "premises is disregarded as a sale", substitute "

residential

premises is disregarded as a sale or supply".

8 After subsection 40-75(2A)

Insert:

(2B) A supply (the wholesale supply) of the

residential premises is

disregarded as a sale or supply for the purposes of applying

paragraph (1)(a) if:

(a) the premises from which the residential premises were

created had earlier been supplied to the

recipient of the

wholesale supply or one or more of its

associates; and

(b) an arrangement (including an agreement) was made by:

(i) the supplier of the earlier supply, or one or more

associates of the supplier; and

(ii) the recipient of the earlier supply, or one or more

associates of the recipient; and

on:

(i) specified building or renovation work being undertaken

by the recipient of the earlier supply, or by one or more

associates of the recipient; or

(ii) circumstances existing as specified in regulations made

for the purposes of this subparagraph.

Note 1:

The premises referred to in paragraph (a) could be vacant land.

Note 2:

For subparagraph (c)(ii), circumstances may be specified by class (see

subsection 13(3) of the Legislative Instruments Act 2003).

New residential premises Schedule 4

Amendments Part 1

Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011 39

Note 3:

This subsection does not apply to a supply if certain commercial

commitments were in place before 27 January 2011 (see item 12 of

Schedule 4 to the Tax Laws Amendment (2011 Measures No. 9) Act

2011).

(2C) A supply of the

residential premises is disregarded as a sale or

supply for the purposes of applying paragraph (1)(a) if it is made

because a

property subdivision plan relating to the premises was

lodged for registration (however described) by the

recipient of the

supply or the recipient's

associate.

Note:

This subsection does not apply to a supply if the plan was lodged for

registration before 27 January 2011 (see item 13 of Schedule 4 to the

Tax Laws Amendment (2011 Measures No. 9) Act 2011).

9 Before subsection 40-75(3)

Insert:

New residential premises include associated land

10 Section 195-1

Insert:

property subdivision plan means a plan:

(a) for the division of

real property; and

(b) that is registered (however described) under an

Australian

law.

Note:

Examples are strata title plans and plans to subdivide land.

Schedule 4 New residential premises

Part 2 Application of amendments

40 Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011

Part 2--Application of amendments

11 Application of amendments

(1)

The amendments made by this Schedule (other than item 2) apply in

relation to supplies of residential premises on or after 27 January 2011.

(2)

Subitem (1) has effect subject to items 12 and 13.

(3)

The amendment made by item 2 applies in relation to supplies of

residential premises on or after the day after this Schedule commences.

12 Exception--arrangements made before 27 January 2011 to

develop premises

(1)

Subsection 40-75(2B) of the A New Tax System (Goods and Services

Tax) Act 1999 (as inserted by this Schedule) does not apply to a supply

(the wholesale supply) of residential premises if:

(a) the wholesale supply happens:

(i) on or after 27 January 2011; or

(ii) before 27 January 2011, and the next supply of the

residential premises happens on or after 27 January

2011; and

(b) subitem (2) is satisfied in relation to the wholesale supply.

(2)

This subitem is satisfied in relation to the wholesale supply if:

(a) the premises from which the residential premises were

created had earlier been supplied to the recipient of the

wholesale supply or one or more of its associates; and

(b) immediately before 27 January 2011, the recipient of the

wholesale supply or one or more of its associates were

commercially committed to an arrangement; and

on specified building or renovation work being undertaken

by the recipient of the wholesale supply or by one or more of

its associates; and

(d) no GST return (as amended) given to the Commissioner

reports a net amount for a tax period that includes amounts

equivalent to the input tax credits that the recipient of the

wholesale supply would have been entitled to if its

acquisitions relating to the next sale or long term lease of the

residential premises were creditable acquisitions.

New residential premises Schedule 4

Application of amendments Part 2

Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011 41

Note:

The premises referred to in paragraph (a) could be vacant land.

(3)

In this item:

arrangement includes an agreement.

commercially committed: to be commercially committed, in relation to

an arrangement, means:

(a) to be a party to the arrangement, where the arrangement is

legally binding; or

(b) to be the preferred tenderer (however described) in the final

step in a bidding or tendering process relating to the

arrangement; or

total GST exclusive value of at least $200,000, in relation to

the arrangement; or

(d) to have directly incurred (with associates) internal direct

costs, of at least $200,000, in relation to the arrangement.

13 Exception--property subdivision plans lodged for

registration before 27 January 2011

Subsection 40-75(2C) of the A New Tax System (Goods and Services

Tax) Act 1999 (as inserted by this Schedule) does not apply to a supply

of residential premises on or after 27 January 2011 if the supply is made

because a property subdivision plan relating to the premises was lodged

for registration (however described) before 27 January 2011 by the

recipient of the supply or the recipient's associate.

Schedule 5 Deductible gift recipients

42 Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011

Schedule 5--Deductible gift recipients

Income Tax Assessment Act 1997

1 Subsection 30-70(2) (cell at table item 8.2.12, column

headed "Fund, authority or institution")

Repeal the cell, substitute:

Playgroup Australia Limited

2 Subsection 30-80(2) (at the end of the table)

Add:

9.2.24

Rhodes Trust in Australia

the gift must be made

after 21 October 2011

3 Subsection 30-315(2) (cell at table item 86AA, column

without a heading)

Repeal the cell, substitute:

Playgroup Australia Limited

4 Subsection 30-315(2) (after table item 97)

Insert:

97AAA

Rhodes Trust in Australia

item 9.2.24

5 Application of amendments

(1)

The amendments made by items 1 and 3 of this Schedule apply to gifts

made after 25 October 2010.

(2)

The amendments made by items 2 and 4 of this Schedule apply to gifts

made after 21 October 2011.

Miscellaneous amendments Schedule 6

Corrections to cross-references Part 1

Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011 43

Schedule 6--Miscellaneous amendments

Part 1--Corrections to cross-references

Division 1--Income Tax Assessment Act 1936

1 Paragraph 102MA(2)(a)

Repeal the paragraph.

2 After paragraph 102MA(2)(b)

Insert:

(ba) an arrangement to which Division 242 (about leases of luxury

cars) of the Income Tax Assessment Act 1997 applies; or

Division 2--Income Tax Assessment Act 1997

3 Subsection 207-59(1)

Omit "Subsection (3)", substitute "Subsection (2)".

4 Subsections 230-380(2) and (3)

Omit "subsection (1)", substitute "subsection (1A)".

5 Paragraph 230-380(6)(a)

Omit "subsection (1)", substitute "subsection (1A)".

6 Subsection 995-1(1) (definition of non-arm's length limited

recourse debt)

Omit "subsection 243-20(6)", substitute "subsection 243-20(7)".

Division 3--Citizenship

Income Tax Assessment Act 1997

7 Paragraph 30-37(a)

Omit "Australian Citizenship Act 1948", substitute "Australian

Citizenship Act 2007".

Miscellaneous amendments Schedule 6

Repeal of references to Cultural Bequests Program and redundant subsection numbers

Part 2

Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011 45

Part 2--Repeal of references to Cultural Bequests

Program and redundant subsection

numbers

Division 1--Cultural Bequests Program

Income Tax Assessment Act 1997

11 Subsection 30-5(1)

Omit ", or a testamentary gift under the Cultural Bequests Program".

12 Subsection 30-5(1) (note 1)

Repeal the note.

13 Subsection 30-5(1) (note 2)

Omit "Note 2", substitute "Note".

14 Subsection 30-15(2) (note 1)

Repeal the note.

15 Subsection 30-15(2) (note 2)

Omit "Note 2", substitute "Note".

16 Section 30-115

Omit ", 30-B or 30-D", substitute "or 30-B".

17 Subdivision 30-D

Repeal the Subdivision.

18 Section 30-315 (table item 41)

Repeal the item.

19 Paragraph 104-185(2)(c)

Repeal the paragraph.

20 Subsection 118-60(1)

Omit "under the Cultural Bequests Program or".

Schedule 6 Miscellaneous amendments

Part 2 Repeal of references to Cultural Bequests Program and redundant subsection

numbers

46 Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011

Income Tax (Transitional Provisions) Act 1997

21 Sections 30-10, 30-15 and 30-20

Repeal the sections.

Division 2--Redundant subsection numbers

A New Tax System (Medicare Levy Surcharge--Fringe

Benefits) Act 1999

22 Subsection 11(1)

Omit "(1)".

Superannuation Industry (Supervision) Act 1993

23 Subsection 252(1)

Omit "(1)".

Superannuation (Self Managed Superannuation Funds)

Supervisory Levy Imposition Act 1991

24 Subsection 7(1)

Omit "(1)".

Miscellaneous amendments Schedule 6

List of tax offsets Part 3

Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011 47

Part 3--List of tax offsets

Income Tax Assessment Act 1997

25 Section 13-1 (after table item headed "farm help income

support")

Insert:

film

...................................................................................... Division 376

26 Section 13-1 (after table item headed "life assurance")

Insert:

life insurance company

subsidiary joining consolidated group .............................. 713-545(5)

Schedule 6 Miscellaneous amendments

Part 4 Taxation Administration Act 1953

48 Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011

Part 4--Taxation Administration Act 1953

27 Subsection 2(1)

Insert:

approved form has the meaning given by Schedule 1.

28 After subsection 3AA(1)

Insert:

Definitions in Schedule 1 do not apply to rest of Act

(1A) So far as a provision in Schedule 1 gives an expression a particular

meaning, the provision does not also have effect for the purposes

of this Act (other than Schedule 1), except as provided in this Act

(other than Schedule 1).

29 Paragraph 8C(1)(a)

Omit "to furnish an approved form or any information", substitute "to

give any information or document".

Miscellaneous amendments Schedule 6

Foreign superannuation funds Part 5

Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011 49

Part 5--Foreign superannuation funds

Division 1--Pensions and annuities

Income Tax Assessment Act 1936

30 Paragraph 603(1)(h)

Before "Division 82", insert "section 27H of this Act,".

31 Application of amendment

The amendment made by this Division applies to the 2007-08 income

year and later income years.

Division 2--Superannuation lump sums

Income Tax (Transitional Provisions) Act 1997

32 After Division 304

Insert:

Division 305--Superannuation benefits paid from

non-complying superannuation plans

Table of Subdivisions

305-B Superannuation benefits from foreign superannuation funds

Subdivision 305-B--Superannuation benefits from foreign

superannuation funds

Table of sections

305-80

Lump sums paid into complying superannuation plans post-FIF abolition

305-80 Lump sums paid into complying superannuation plans

post-FIF abolition

(1) You are entitled to a deduction for an income year (the deduction

year) if:

Schedule 6 Miscellaneous amendments

Part 5 Foreign superannuation funds

50 Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011

(a) you have an interest in a FIF (within the meaning of Part XI

of the Income Tax Assessment Act 1936, as in force just

before the commencement of item 37 of Schedule 1 to the

Tax Laws Amendment (Foreign Source Income Deferral) Act

(No. 1) 2010) (the paying fund); and

(b) Subdivision 305-B of the Income Tax Assessment Act 1997

applies in relation to the paying fund (see section 305-55 of

that Act); and

superannuation fund in respect of you during the deduction

year; and

(d) you choose under section 305-80 of the Income Tax

Assessment Act 1997 that the amount, or part of the amount,

is to be treated as assessable income of the complying

superannuation fund; and

(e) immediately before the transfer happens, there is a post-FIF

abolition surplus (within the meaning of the Income Tax

Assessment Act 1936) for the paying fund in relation to you;

and

(f) the deduction year is the 2010-11 income year or a later

income year.

(2) The amount of the deduction is the lesser of:

(a) the post-FIF abolition surplus; and

(b) the amount covered by your choice mentioned in

paragraph (1)(d).

Miscellaneous amendments Schedule 6

Asterisks Part 6

Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011 51

Part 6--Asterisks

Division 1--A New Tax System (Wine Equalisation Tax)

Act 1999

33 Paragraph 19-20(1)(a)

Omit "ITAA 1997", substitute "

ITAA 1997".

34 Section 33-1 (definition of connected with)

Omit "ITAA 1997", substitute "

ITAA 1997".

Division 2--Trading stock and revenue assets

Income Tax Assessment Act 1997

35 Subsection 28-170(3) (table item 2, column 2)

Omit "trading stock", substitute "

trading stock".

36 Paragraph 28-175(3)(b)

Omit "trading stock", substitute "

trading stock".

37 Subsection 70-30(5)

Omit "

trading stock" (second occurring), substitute "trading stock".

38 Paragraph 70-35(1)(b)

Omit "

trading stock", substitute "trading stock".

39 Paragraphs 70-100(6)(b) and (10)(b)

Omit "

trading stock", substitute "trading stock".

40 Subsection 165-115BB(2) (paragraph (a) of the definition

of previous capital losses, deductions or trading stock

losses)

Omit "trading stock losses", substitute "

trading stock losses".

41 Subsections 165-115F(3) and (4)

Omit "trading stock", substitute "

trading stock".

Schedule 6 Miscellaneous amendments

Part 6 Asterisks

52 Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011

42 Subparagraph 385-135(3)(b)(ii)

Omit "trading stock", substitute "

trading stock".

43 Subsection 715-145(2) (table item 2, column headed "If:")

Omit "

trading stock" (second occurring), substitute "trading stock".

44 Paragraph 723-50(2)(a)

Omit "trading stock" (first occurring), substitute "

trading stock".

45 Paragraph 723-50(2)(b)

Omit "revenue asset", substitute "

revenue asset".

46 Subsection 725-225(5)

Omit "trading stock or revenue assets", substitute "

trading stock or

revenue assets".

47 Section 725-245 (table item 1, column headed "Up

interests")

Omit "

revenue assets nor your

trading stock", substitute "revenue

assets nor your trading stock".

48 Section 725-245 (table item 2, column headed "Up

interests")

Omit "

trading stock or

revenue assets", substitute "trading stock or

revenue assets".

49 Section 725-245 (table item 3, column headed "Up

interests")

Omit "

revenue assets or your

trading stock", substitute "revenue

assets or your trading stock".

50 Subsection 725-310(2)

Omit "trading stock", substitute "

trading stock".

51 Section 725-315

Omit "trading stock" (first occurring), substitute "

trading stock".

52 Paragraph 725-315(a)

Miscellaneous amendments Schedule 6

Asterisks Part 6

Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011 53

Omit "

trading stock", substitute "trading stock".

53 Subsection 725-335(2)

Omit "trading stock and revenue assets" (first occurring), substitute

trading stock and

revenue assets".

54 Subsection 725-335(3) (table item 2, column headed "To:")

Omit "

revenue assets or your

trading stock", substitute "revenue

assets or your trading stock".

55 Subsection 725-335(3) (table items 4 and 5, column

headed "To:")

Omit "

revenue assets nor your

trading stock", substitute "revenue

assets nor your trading stock".

56 Subsection 725-335(3) (table item 6, column headed "To:")

Omit "

trading stock or

revenue assets", substitute "trading stock or

revenue assets".

57 Paragraphs 977-25(3)(b) and 977-35(2)(b)

Omit "trading stock", substitute "

trading stock".

58 Subsection 995-1(1) (paragraph (b) of the definition of

apportionable deductions)

Omit "trading stock", substitute "

trading stock".

59 Subsection 995-1(1) (paragraph (b) of the definition of

consideration receivable)

Omit "trading stock", substitute "

trading stock".

Division 3--Other amendments

Income Tax Assessment Act 1997

60 Section 36-25 (table relating to tax losses of companies,

item 5)

Omit "

life insurance company", substitute "life insurance company".

Schedule 6 Miscellaneous amendments

Part 6 Asterisks

54 Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011

61 Section 36-25 (table relating to tax losses of corporate tax

entities, item 1)

Omit "

corporate tax entity that has an amount of

excess franking

offsets for an income year: it works out its

tax loss", substitute

"corporate tax entity that has an amount of excess franking offsets for

an income year: it works out its tax loss".

62 Section 36-25 (table relating to tax losses of entities that

become foreign hybrids, item 1)

Omit "

foreign hybrid", substitute "foreign hybrid".

63 Paragraph 70-80(3)(a)

Omit "

business", substitute "business".

64 Subsection 115-228(1) (definition of net financial benefit)

Omit "capital gain" (first occurring), substitute "

capital gain".

65 Paragraph 124-445(a)

Omit "member", substitute "

member".

66 Paragraph 216-10(1)(b)

Omit "

securities lending arrangement", substitute "securities lending

arrangement".

67 Section 216-30

Omit "

securities lending arrangements", substitute "securities lending

arrangements".

Miscellaneous amendments Schedule 6

References to Acts Part 7

Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011 55

Part 7--References to Acts

A New Tax System (Goods and Services Tax) Act 1999

68 Paragraph 9-20(1)(d)

Omit "Income Tax Assessment Act 1997", substitute "

ITAA 1997".

69 Subsection 113-5(1)

Omit "Income Tax Assessment Act 1997", substitute "

ITAA 1997".

70 Paragraph 177-12(4)(b)

Omit "Income Tax Assessment Act 1997", substitute "

ITAA 1997".

71 Section 195-1 (definition of non-cash benefit)

Omit "Income Tax Assessment Act 1997", substitute "

ITAA 1997".

72 Section 195-1 (definition of withholding payment covered

by a particular provision in Schedule 1 to the Taxation

Administration Act 1953)

Omit "Income Tax Assessment Act 1997", substitute "

ITAA 1997".

73 Section 195-1 (definition of withholding payment)

Omit "Income Tax Assessment Act 1997", substitute "

ITAA 1997".

Income Tax Assessment Act 1997

74 Subsection 995-1(1) (definition of annual tax period

election)

Omit "A New Tax System (Goods and Services Tax) Act 1999",

substitute "

GST Act".

75 Subsection 995-1(1) (definition of fund-raising event)

Omit "A New Tax System (Goods and Services Tax) Act 1999",

substitute "

GST Act".

76 Subsection 995-1(1) (definition of precious metal)

Omit "A New Tax System (Goods and Services Tax) Act 1999",

substitute "

GST Act".

Schedule 6 Miscellaneous amendments

Part 7 References to Acts

56 Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011

77 Subsection 995-1(1) (definition of pre-school course)

Omit "A New Tax System (Goods and Services Tax) Act 1999",

substitute "

GST Act".

78 Subsection 995-1(1) (definition of primary course)

Omit "A New Tax System (Goods and Services Tax) Act 1999",

substitute "

GST Act".

79 Subsection 995-1(1) (definition of residential premises)

Omit "A New Tax System (Goods and Services Tax) Act 1999",

substitute "

GST Act".

80 Subsection 995-1(1) (definition of retirement village)

Omit "A New Tax System (Goods and Services Tax) Act 1999",

substitute "

GST Act".

81 Subsection 995-1(1) (definition of secondary course)

Omit "A New Tax System (Goods and Services Tax) Act 1999",

substitute "

GST Act".

82 Subsection 995-1(1) (definition of tertiary course)

Omit "A New Tax System (Goods and Services Tax) Act 1999",

substitute "

GST Act".

83 Subsection 995-1(1) (definition of untaxed Commonwealth

entity)

Omit "A New Tax System (Goods and Services Tax) Act 1999",

substitute "

GST Act".

Taxation Administration Act 1953

84 Section 426-1 in Schedule 1

Omit "A New Tax System (Goods and Services Tax) Act 1999",

substitute "GST Act".

85 Paragraph 426-5(a) in Schedule 1

Omit "A New Tax System (Goods and Services Tax) Act 1999",

substitute "

GST Act".

Miscellaneous amendments Schedule 6

References to Acts Part 7

Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011 57

86 Paragraph 426-5(b) in Schedule 1

Omit "A New Tax System (Goods and Services Tax) Act 1999",

substitute "GST Act".

87 Subsection 426-40(1) in Schedule 1 (paragraph (a) of note

Omit "A New Tax System (Goods and Services Tax) Act 1999",

substitute "GST Act".

88 Subsection 426-55(1) in Schedule 1 (paragraph (a) of the

note)

Omit "A New Tax System (Goods and Services Tax) Act 1999",

substitute "GST Act".

89 Paragraph 426-65(1)(a) in Schedule 1

Omit "A New Tax System (Goods and Services Tax) Act 1999",

substitute "

GST Act".

90 Paragraph 426-65(1)(b) in Schedule 1

Omit "A New Tax System (Goods and Services Tax) Act 1999",

substitute "GST Act".

91 Subsection 446-5(6) in Schedule 1 (table items 9 and 10,

column headed "If the resolution affects the operation

of ...")

Omit "A New Tax System (Goods and Services Tax) Act 1999",

substitute "

GST Act".

92 Paragraph 850-100(8)(a) in Schedule 1 (example)

Omit "A New Tax System (Goods and Services Tax) Act 1999",

substitute "GST Act".

93 Paragraph 850-100(8)(b) in Schedule 1 (example)

Omit "A New Tax System (Goods and Services Tax) Act 1999",

substitute "GST Act".

Schedule 6 Miscellaneous amendments

Part 8 Extensions of time

58 Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011

Part 8--Extensions of time

Income Tax Assessment Act 1997

94 Subsection 118-195(1) (at the end of the cell at table

item 1, column headed "And also one of these items")

Add ", or within a longer period allowed by the Commissioner".

95 Subsection 118-200(3)

Repeal the subsection (not including the notes), substitute:

(3) However, you can adjust the formula by ignoring any non-main

residence days and total days in the period from the deceased's

death until your

ownership interest ended, if:

(a)

the

deceased

acquired the ownership interest on or after

20 September 1985; and

(b) your ownership interest ends within:

(i) 2 years of the deceased's death; or

(ii) a longer period allowed by the Commissioner; and

96 Application of amendments

The amendments made by this Part apply in relation to CGT events that

happen in the 2008-09 income year and later income years.

Miscellaneous amendments Schedule 6

Cessation of membership of GST groups etc. Part 9

Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011 59

Part 9--Cessation of membership of GST groups etc.

A New Tax System (Goods and Services Tax) Act 1999

97 Subsection 48-110(1)

Omit "

cease", substitute "cease".

98 Paragraph 48-115(1)(b)

Omit "

cease", substitute "cease".

99 Paragraph 48-115(2)(b)

Omit "

ceased", substitute "ceased".

100 Subsection 51-110(1)

Omit "

cease", substitute "cease".

101 Paragraph 51-115(1)(b)

Omit "

cease", substitute "cease".

102 Paragraph 51-115(2)(b)

Omit "

ceased", substitute "ceased".

103 Section 195-1 (definition of cease to be a member of a

GST group)

Repeal the definition.

104 Section 195-1 (definition of cease to be a participant of a

GST joint venture)

Repeal the definition.

105 Application of amendments

The amendments made by this Part apply to tax periods starting on or

after the commencement of this item.

Schedule 6 Miscellaneous amendments

Part 10 Small business participation percentage

60 Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011

Part 10--Small business participation percentage

Division 1--Companies

Income Tax Assessment Act 1997

106 Before subsection 152-70(2)

Insert:

Companies

107 Subsection 152-70(2)

Omit "in", substitute "of".

108 At the end of section 152-70

Add:

(3) Paragraph (a) of item 1 of the table does not apply if the entity

holds the legal and equitable interests in the

shares jointly with

another entity.

109 Application of amendments

The amendments made by this Division apply to CGT events that

happen in the 2006-07 income year or later income years.

Division 2--Discretionary trusts

Income Tax Assessment Act 1997

110 Subsection 152-70(1) (paragraph (a) of the cell at table

item 3, column headed "Is:")

Omit "(the current year)", substitute "(the relevant year)".

111 Subsection 152-70(1) (paragraph (b) of the cell at table

item 3, column headed "Is:")

Omit "current year", substitute "relevant year".

112 At the end of section 152-70

Add:

Miscellaneous amendments Schedule 6

Small business participation percentage Part 10

Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011 61

Discretionary trusts

(4) Subsections (5) and (6) apply for the purpose of working out the

direct small business participation percentage in an entity in

connection with a

CGT event that happened in an income year

(the CGT event year), if:

(a) the entity is a trust (where entities do not have entitlements to

all the income and capital of the trust); and

(b) during the relevant year mentioned in item 3 of the table in

subsection (1) (disregarding subsection (5)), the trustee

mentioned in that item:

(i) does not make a distribution of income; and

(ii) does not make a distribution of capital.

(5) Treat the references in that item to the relevant year as being

references to:

(a) if the trustee made a distribution of income or capital during

the CGT event year--the CGT event year; or

(b) otherwise--the last income year before the CGT event year

in which the trustee did make a distribution of income or

capital.

(6) Despite subsection (5), an entity holds a direct small business

participation percentage of 0% in the trust at the relevant time if

either:

(a)

the

trust:

(i)

had

net income for the relevant year; and

(ii) did not have a

tax loss for the relevant year; or

(b) the trustee did not make a distribution of income or capital at

any time before the end of the CGT event year.

113 Paragraph 152-105(c) (note)

Repeal the note.

114 Paragraph 152-110(1)(c) (note)

Repeal the note.

115 Section 152-120

Repeal the section.

Miscellaneous amendments Schedule 6

Exempt income Part 11

Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011 63

Part 11--Exempt income

Division 1--Repeal of spent provisions

Income Tax Assessment Act 1997

117 Section 11-15 (table item headed "family assistance")

Omit:

one-off payment to families ............................................... 52-150

payments to families under the scheme determined

under Schedule 3 to the Family Assistance

Legislation Amendment (More Help for Families--

One-off Payments) Act 2004 ........................................

52-150

118 Section 11-15 (table item headed "social security or like

payments")

Omit:

2008 one-off payment to older Australians under the

Veterans' Entitlements Act 1986 ..................................

52-65

payments under the scheme determined under item 2

of Schedule 2 to the Social Security and Veterans'

Entitlements Legislation Amendment (One-off

Payments and Other Budget Measures) Act 2008 .......

52-65

119 Paragraph 52-10(1)(b)

Repeal the paragraph.

120 Subsections 52-10(1B) and (1C)

Repeal the subsections.

121 Paragraphs 52-65(1)(bb) and (c)

Repeal the paragraphs.

122 Subsections 52-65(1B) and (1C)

Repeal the subsections.

123 Section 52-75 (table item 1C)

Repeal the item.

Schedule 6 Miscellaneous amendments

Part 11 Exempt income

64 Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011

124 Section 52-75 (cell at table item 1, column headed

"Payment made because of a person's death")

Repeal the cell, substitute:

Division 12A of Part IIIB

125 Section 52-75 (cell at table item 3, column headed

"Payment made because of a person's death")

Repeal the cell, substitute:

Division 12A of Part IIIB

126 Section 52-75 (cell at table item 6, column headed

"Payment made because of a person's death")

Repeal the cell, substitute:

Division 12A of Part IIIB

127 Section 52-75 (cell at table item 7, column headed

"Payment made because of a person's death")

Repeal the cell, substitute:

Division 12A of Part IIIB

128 Section 52-75 (cell at table item 9, column headed

"Payment made because of a person's death")

Repeal the cell, substitute:

Division 12A of Part IIIB

129 Subsection 52-150(1)

Omit "(1)".

130 Subsection 52-150(1)

Omit "one-off payment to families,".

131 Subsection 52-150(2)

Repeal the subsection.

Miscellaneous amendments Schedule 6

Exempt income Part 11

Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011 65

Division 2--Lists of exempt income

Income Tax Assessment Act 1997

132 Subsection 6-20(1) (note)

Omit ", 11-10".

133 Section 11-1

Omit "3 main classes", substitute "2 main classes".

134 Paragraphs 11-1(b) and (c)

Repeal the paragraphs, substitute:

(b) ordinary or statutory income of a kind that is exempt (see

table in section 11-15).

135 Section 11-10

Repeal the section.

136 Section 11-15 (heading)

Repeal the heading, substitute:

11-15 Ordinary or statutory income which is exempt

137 Section 11-15 (after table item headed "defence")

Insert:

dividends or shares

pooled development fund company dividend ................... 124ZM

pooled development fund company shares, income

from sale of ..................................................................

124ZN

138 Section 11-15 (table items headed "family assistance"

and "foreign aspects of income taxation")

Repeal the items, substitute:

family assistance

baby bonus ......................................................................... 52-150

back to school bonus or single income family bonus ........ 52-150

child care benefit ............................................................... 52-150

child care rebate ................................................................ 52-150

Schedule 6 Miscellaneous amendments

Part 11 Exempt income

66 Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011

economic security strategy payment to families ................ 52-150

families, payments to, under the scheme determined

under Schedule 4 to the Social Security and Other

Legislation Amendment (Economic Security

Strategy) Act 2008 ........................................................ 52-160

family tax benefit .............................................................. 52-150

Household Stimulus Package Act (No. 2) 2009,

payments under scheme determined under

Schedule 4 to the .......................................................... 52-165

maternity immunisation allowance .................................... 52-150

financial arrangements

gains related to exempt income .......................................... 230-30

financial transactions

infrastructure borrowings, income in relation to ............... 159GZZZZE

pooled development fund company dividends .................. 124ZM

pooled development fund company shares, income

from sale of ..................................................................

124ZN

foreign aspects of income taxation

approved overseas project, income from .......................... 23AF

Australian-American Education Foundation, grant

from ..............................................................................

51-10

Commonwealth of Nations country officer, official

salary and foreign income ...........................................

768-100

consul and official staff member, official salary and

foreign income .............................................................

768-100

Defence Force member, foreign resident, pay and

allowances of ...............................................................

842-105

Defence Force member, pay and allowances from

being on eligible duty ..................................................

23AD

Defence Force member, pay and allowances from

performing duties in operational areas ........................

23AC

defence of Australia, overseas person's income from

assisting in Australia's defence ....................................

842-105

diplomat and official staff member, official salary and

foreign income .............................................................

768-100

educational, scientific, religious or philanthropic

society, income of a visiting representative of ............

842-105

expert, foreign resident, remuneration of .......................... 842-105

foreign society or association representative, income of

......................................................................................

842-105

forex realisation gains, certain ........................................... 775-20

Miscellaneous amendments Schedule 6

Exempt income Part 11

Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011 67

government representative and members of the

entourage, foreign resident, income of ........................

842-105

OBU investment trusts for overseas charitable

institutions ....................................................................

121EL(2)

OBU off-shore investment trusts, income to which

subsection 121D(6) applies .........................................

121EL

overseas charitable institutions, income from OBUs ......... 121ELA(1)

overseas employment income, resident, income of .......... 23AG

persecution victim, payments to ........................................ 768-105

press representative, foreign, income of ........................... 842-105

resistance fighter and victim of wartime persecution,

payments to ..................................................................

768-105

Territory resident company or trust, income from

sources outside Australia .............................................

24F

Territory resident, income from sources in a prescribed

Territory .......................................................................

24G

United Nations, income from service with ....................... 23AB

United States projects, income from approved overseas

projects ........................................................................

23AA

139 Section 11-15 (after table item headed "health")

Insert:

interest

judgement debt, personal injury ......................................... 51-57

140 Section 11-15 (after table item headed "life-insurance

companies")

Insert:

non-cash benefits

business benefit .................................................................. 23L(2)

exempt fringe benefit ......................................................... 23L(1A)

prizes

Prime Minister's Literary Awards .................................... 51-60

Prime Minister's Prize for Australian History .................. 51-60

Prime Minister's Prize for Science ................................... 51-60

141 Section 11-15 (table item headed "social security or like

payments")

Repeal the item, substitute:

Schedule 6 Miscellaneous amendments

Part 11 Exempt income

68 Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011

social security or like payments

ABSTUDY scheme, payment under .................................. Subdivision 52-E

Better Start for Children with Disability initiative,

Outer Regional and Remote payment under ...............

52-172

carer adjustment payment .................................................. 53-10

carers, 2005 one-off payment to, (carer payment

related), 2005 one-off payment to carers (carer

service pension related) or 2005 one-off payment to

carers (carer allowance related) ....................................

52-10

carers, 2006 one-off payment to, (carer payment

related), 2006 one-off payment to carers (wife

pension related), 2006 one-off payment to carers

(partner service pension related), 2006 one-off

payment to carers (carer service pension related) or

2006 one-off payment to carers (carer allowance

related) .........................................................................

52-10

carers, 2007 one-off payment to, (carer payment

related), 2007 one-off payment to carers (wife

pension related), 2007 one-off payment to carers

(partner service pension related), 2007 one-off

payment to carers (carer service pension related) or

2007 one-off payment to carers (carer allowance

related). .........................................................................

52-10

carers, 2008 one-off payment to, (carer payment

related), 2008 one-off payment to carers (wife

pension related), 2008 one-off payment to carers

(partner service pension related), 2008 one-off

payment to carers (carer service pension related) or

2008 one-off payment to carers (carer allowance

related) ..........................................................................

52-10

carers, one-off payment to, (carer allowance related) or

one-off payment to carers (carer payment related) .....

52-10

carers, payments to, under the scheme determined

under Schedule 3 to the Family Assistance

Legislation Amendment (More Help for Families--

One-off Payments) Act 2004 ........................................

52-10

carer supplement. ............................................................... 52-10

child disability assistance ................................................... Subdivision 52-A

Commonwealth education or training payment ................. Subdivision 52-F

DFISA bonus and DFISA bonus bereavement payment ... 52-65

disability services payment ............................................... 53-10

Miscellaneous amendments Schedule 6

Exempt income Part 11

Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011 69

economic security strategy payment under the Social

Security Act 1991..........................................................

52-10

economic security strategy payment under the

Veterans' Entitlements Act 1986 ..................................

52-65

education entry payment supplement under the Social

Security Act 1991..........................................................

52-10

exceptional circumstances relief, payment for .................. 53-10 and 53-15

farmers hardship bonus under the Social Security Act

1991 ..............................................................................

52-10

farm help income support .................................................. 53-10 and 53-15

Helping Children with Autism package, Outer

Regional and Remote payment under .........................

52-170

Household Stimulus Package Act (No. 2) 2009,

payments under the scheme determined under

Schedule 4 to the ..........................................................

52-165

matched savings scheme (income management)

payment under the Social Security Act 1991 ................

52-10

older Australians, 2006 one-off payment to, under the

Social Security Act 1991 ..............................................

52-10

older Australians, 2007 one-off payment to, under the

Social Security Act 1991 ..............................................

52-10

older Australians, 2008 one-off payment to, under the

Social Security Act 1991 ..............................................

52-10

pension bonus and pension bonus bereavement

payment ........................................................................

52-10 and 52-65

persecution victim, payments to ....................................... 768-105

private health insurance ..................................................... 52-125

resistance fighter and victim of wartime persecution,

payments to ..................................................................

768-105

Social Security and Other Legislation Amendment

(Economic Security Strategy) Act 2008, payments

under the scheme determined under Schedule 4 to

the .................................................................................

52-160

Social Security and Veterans' Affairs Legislation

Amendment (One-off Payments and Other 2007

Budget Measures) Act 2007, payments under a

scheme determined under item 1 of Schedule 2 to

the .................................................................................

52-10

Social Security and Veterans' Affairs Legislation

Amendment (One-off Payments and Other 2007

Budget Measures) Act 2007, payments under the

scheme determined under Schedule 4 to the ................

52-10

Schedule 6 Miscellaneous amendments

Part 11 Exempt income

70 Tax Laws Amendment (2011 Measures No. 9) Bill 2011 No. , 2011

Social Security and Veterans' Entitlements Legislation

Amendment (One-off Payments and Other Budget

Measures) Act 2008, payments under a scheme

determined under item 1 of Schedule 2 to the ..............

52-10

Social Security and Veterans' Entitlements Legislation

Amendment (One-off Payments and Other Budget

Measures) Act 2008, payments under the scheme

determined under Schedule 4 to the .............................

52-10

Social Security and Veterans' Entitlements Legislation

Amendment (One-off Payments to Increase

Assistance for Older Australians and Carers and

Other Measures) Act 2006, payments under the

scheme determined under item 1 of Schedule 2 to

the .................................................................................

52-10

Social Security and Veterans' Entitlements Legislation

Amendment (One-off Payments to Increase

Assistance for Older Australians and Carers and

Other Measures) Act 2006, payments under the

scheme determined under Schedule 4 to the ................

52-10

Social Security Legislation Amendment (One-off

Payments for Carers) Act 2005, payments under

the scheme determined under Schedule 2 to the ..........

52-10

social security payments ................................................... Subdivision 52-A

training and learning bonus under the Social Security

Act 1991 ........................................................................

52-10

travelling expenses for Australian participants in

British nuclear tests .....................................................

Subdivision 52-CB

veteran, Australian and United Kingdom, payment to ..... 53-20

veteran, payment to ........................................................... Subdivisions 52-B

and 52-C

Veterans' Entitlements Act 1986, lump sum payment

under section 198N of the ............................................

52-65

voluntary income management incentive payment

under the Social Security Act 1991 ..............................

52-10

wounds and disability pension .......................................... 53-10

Commonwealth of Australia Bills

TAX LAWS AMENDMENT (2011 MEASURES NO. 9) BILL 2011