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This is a Bill, not an Act. For current law, see the Acts databases.
2016-2017
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Treasury Laws Amendment (2017
Measures No. 2) Bill 2017
No. , 2017
(Treasury)
A Bill for an Act to amend the law relating to
taxation, superannuation, personal insolvency and
corporate insolvency, and for related purposes
No. , 2017
Treasury Laws Amendment (2017 Measures No. 2) Bill 2017
i
Contents
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 1
3
Schedules ........................................................................................... 3
Schedule 1--Amendments relating to superannuation reform
package
4
Part 1--Amendments
4
Income Tax Assessment Act 1997
4
Income Tax (Transitional Provisions) Act 1997
8
Legislation Act 2003
12
Superannuation Guarantee (Administration) Act 1992
12
Taxation Administration Act 1953
12
Treasury Laws Amendment (Fair and Sustainable Superannuation)
Act 2016
13
Part 2--Application provisions
14
Income Tax (Transitional Provisions) Act 1997
14
Schedule 2--Amendments relating to insolvency
16
Bankruptcy Act 1966
16
Corporations Act 2001
17
No. , 2017
Treasury Laws Amendment (2017 Measures No. 2) Bill 2017
1
A Bill for an Act to amend the law relating to
1
taxation, superannuation, personal insolvency and
2
corporate insolvency, and for related purposes
3
The Parliament of Australia enacts:
4
1 Short title
5
This Act is the Treasury Laws Amendment (2017 Measures No. 2)
6
Act 2017.
7
2 Commencement
8
(1) Each provision of this Act specified in column 1 of the table
9
commences, or is taken to have commenced, in accordance with
10
2
Treasury Laws Amendment (2017 Measures No. 2) Bill 2017
No. , 2017
column 2 of the table. Any other statement in column 2 has effect
1
according to its terms.
2
3
Commencement information
Column 1
Column 2
Column 3
Provisions
Commencement
Date/Details
1. Sections 1 to 3
and anything in
this Act not
elsewhere covered
by this table
The day this Act receives the Royal Assent.
2. Schedule 1,
items 1 to 19
The first 1 January, 1 April, 1 July or
1 October to occur after the day this Act
receives the Royal Assent.
3. Schedule 1,
item 20
The day this Act receives the Royal Assent.
4. Schedule 1,
item 21
The later of:
(a) the start of the day this Act receives the
Royal Assent; and
(b) immediately after the commencement of
the Superannuation (Objective) Act
2017.
However, the provisions do not commence
at all if the event mentioned in paragraph (b)
does not occur.
5. Schedule 1,
items 22 to 24
The first 1 January, 1 April, 1 July or
1 October to occur after the day this Act
receives the Royal Assent.
6. Schedule 1,
items 25 to 28
Immediately after the commencement of
Schedule 1 to the Treasury Laws
Amendment (Fair and Sustainable
Superannuation) Act 2016.
1 January 2017
7. Schedule 1,
Part 2
The first 1 January, 1 April, 1 July or
1 October to occur after the day this Act
receives the Royal Assent.
8. Schedule 2
The day this Act receives the Royal Assent.
Note:
This table relates only to the provisions of this Act as originally
4
enacted. It will not be amended to deal with any later amendments of
5
this Act.
6
No. , 2017
Treasury Laws Amendment (2017 Measures No. 2) Bill 2017
3
(2) Any information in column 3 of the table is not part of this Act.
1
Information may be inserted in this column, or information in it
2
may be edited, in any published version of this Act.
3
3 Schedules
4
Legislation that is specified in a Schedule to this Act is amended or
5
repealed as set out in the applicable items in the Schedule
6
concerned, and any other item in a Schedule to this Act has effect
7
according to its terms.
8
Schedule 1 Amendments relating to superannuation reform package
Part 1 Amendments
4
Treasury Laws Amendment (2017 Measures No. 2) Bill 2017
No. , 2017
Schedule 1--Amendments relating to
1
superannuation reform package
2
Part 1--Amendments
3
Income Tax Assessment Act 1997
4
1 Section 291-1
5
Before "exceeds", insert "equals or".
6
2 Paragraph 291-370(1)(c)
7
Repeal the paragraph, substitute:
8
(c) if your
*
defined benefit contributions for the financial year
9
(worked out excluding contributions and amounts covered by
10
paragraph (a)) exceed your notional taxed contributions for
11
the financial year (also worked out excluding contributions
12
and amounts covered by paragraph (a))--the amount of that
13
excess;
14
3 Subsection 294-25(1) (at the end of the table)
15
Add:
16
17
4
a
*
transfer balance
credit arises under
section 294-55 because
of a repayment of a
limited recourse
borrowing arrangement
the amount of the credit
specified in
section 294-55
at the time provided by
section 294-55
5
a
*
transfer balance
credit arises under
regulations made for the
purposes of this item
the amount of the credit
worked out in
accordance with the
regulations
at the time specified in
the regulations
4 At the end of section 294-25 (after the note)
18
Add:
19
Amendments relating to superannuation reform package Schedule 1
Amendments Part 1
No. , 2017
Treasury Laws Amendment (2017 Measures No. 2) Bill 2017
5
Regulations may provide for exceptions
1
(3) The regulations may provide that an item of the table in
2
subsection (1) does not apply to a class of
*
superannuation income
3
streams specified in the regulations.
4
5 Section 294-50
5
Repeal the section, substitute:
6
294-50 Assumptions about income streams
7
(1) Subsections (2) and (3) apply for the purposes of working out the
8
following matters at a time:
9
(a) whether you have a
*
transfer balance account;
10
(b) the
*
transfer balance in your transfer balance account.
11
(2) In working out whether there is a superannuation income stream
12
at a time:
13
(a) have regard only to facts and circumstances that exist at that
14
time; and
15
(b) assume a requirement will be met, to the extent (if any) that:
16
(i) the requirement arises under a provision of the
*
taxation
17
law or under any rules or standards under which a
18
benefit is, or is purported to be, provided; and
19
(ii) meeting the requirement is a condition for there to be a
20
superannuation income stream at that time; and
21
(iii) it is not possible to determine, having regard only to
22
facts and circumstances that exist at that time, whether
23
or not the requirement has been met.
24
(3) In working out whether a
*
superannuation income stream is in the
25
retirement phase at a time, disregard the operation of
26
subsection 307-80(4), if the time is before the end of the 60-day
27
period mentioned in paragraph (c) of that subsection.
28
6 At the end of Subdivision 294-B
29
Add:
30
Schedule 1 Amendments relating to superannuation reform package
Part 1 Amendments
6
Treasury Laws Amendment (2017 Measures No. 2) Bill 2017
No. , 2017
294-55 Repayment of limited recourse borrowing arrangement
1
(1) A
*
transfer balance credit arises in your
*
transfer balance account
2
if:
3
(a) a
*
superannuation provider makes a payment in respect of a
4
*
borrowing under an
*
arrangement that is covered by the
5
exception in subsection 67A(1) of the Superannuation
6
Industry (Supervision) Act 1993 (which is about limited
7
recourse borrowing arrangements); and
8
(b) as a result, there is an increase in the
*
value of a
9
*
superannuation interest that supports a
*
superannuation
10
income stream of which you are the
*
retirement phase
11
recipient; and
12
(c) the superannuation interest is in a
*
superannuation fund that
13
is covered by subsection (4) at the time of the payment.
14
(2) The amount of the credit is the amount of the increase in
*
value.
15
(3) The credit arises at the time of the payment.
16
(4) A
*
complying superannuation fund is covered by this subsection at
17
a time if any of the following requirements are satisfied:
18
(a) the fund is a
*
self managed superannuation fund at the time;
19
(b) there are less than 5
*
members of the fund at the time.
20
7 Subsection 294-80(1) (table item 6)
21
Repeal the item, substitute:
22
6
a
*
superannuation
income stream of which
you were a
*
retirement
phase recipient stops
being a superannuation
income stream that is in
the
*
retirement phase at a
time (the stop time), but
items 1 and 5 do not
apply
the
*
value of the
*
superannuation interest
that supported the
superannuation income
stream just before the
stop time
at the stop time
8 Subsection 294-80(1) (at the end of the table)
23
Add:
24
8
a
*
transfer balance debit
the amount of the debit
at the time specified in
Amendments relating to superannuation reform package Schedule 1
Amendments Part 1
No. , 2017
Treasury Laws Amendment (2017 Measures No. 2) Bill 2017
7
arises under regulations
made for the purposes
of this item
worked out in
accordance with the
regulations
the regulations
9 At the end of section 294-80
1
Add:
2
Regulations may provide for exceptions
3
(3) The regulations may provide that an item of the table in
4
subsection (1) does not apply to a class of
*
superannuation income
5
streams specified in the regulations.
6
10 Paragraph 303-4(2)(a)
7
After "to you", insert "in respect of an amount of
*
defined benefit
8
income".
9
11 Paragraph 303-4(2)(b)
10
After "to you", insert "in respect of an amount of defined benefit
11
income".
12
12 At the end of section 307-70
13
Add:
14
Note:
For the purposes of the transfer balance cap, the meaning of
15
superannuation income stream is affected by subsection 294-50(2).
16
13 Subsection 307-80(3)
17
Repeal the subsection, substitute:
18
(3) However, a
*
superannuation income stream from which
19
a
*
superannuation income stream benefit is payable is not in the
20
retirement phase at a time if:
21
(a) the superannuation income stream is any of the following:
22
(i) a transition to retirement income stream (within the
23
meaning of Part 6 of the Superannuation Industry
24
(Supervision) Regulations 1994);
25
(ii) a non-commutable allocated annuity (within the
26
meaning of those regulations);
27
(iii) a non-commutable allocated pension (within the
28
meaning of those regulations);
29
Schedule 1 Amendments relating to superannuation reform package
Part 1 Amendments
8
Treasury Laws Amendment (2017 Measures No. 2) Bill 2017
No. , 2017
(iv) a transition to retirement pension (within the meaning of
1
Part 4 of the Retirement Savings Accounts
2
Regulations 1997);
3
(v) a non-commutable allocated pension (within the
4
meaning of those regulations); and
5
(b) at or before that time, the person to whom the benefit is
6
payable:
7
(i) has not satisfied a condition of release specified in
8
paragraph (2)(c); or
9
(ii) has satisfied a condition of release specified in
10
subparagraph (2)(c)(i), (ii) or (iii), but has not notified
11
the
*
superannuation income stream provider for the
12
superannuation income stream of that fact.
13
14 At the end of section 307-80
14
Add:
15
Note:
The operation of this subsection in relation to the part of the income
16
year before the end of the 60-day period is modified for the purposes
17
of the transfer balance cap: see section 294-50.
18
15 Subsection 995-1(1)
19
Insert:
20
basic concessional contributions cap means the concessional
21
contributions cap under subsection 291-20(2), disregarding any
22
increase under subsection 291-20(3).
23
Income Tax (Transitional Provisions) Act 1997
24
16 Subsections 291-170(2) and (4)
25
Omit "concessional contributions cap" (wherever occurring), substitute
26
"basic concessional contributions cap".
27
17 At the end of Subdivision 294-A
28
Add:
29
294-80 Structured settlement contributions made before 1 July
30
2017--debit increased to match credits
31
(1) This section applies to you if:
32
Amendments relating to superannuation reform package Schedule 1
Amendments Part 1
No. , 2017
Treasury Laws Amendment (2017 Measures No. 2) Bill 2017
9
(a) on 1 July 2017, a transfer balance debit arose in your transfer
1
balance account under item 2 of the table in
2
subsection 294-80(1) of the Income Tax Assessment Act
3
1997; and
4
(b) the sum of all the transfer balance credits that arise in your
5
transfer balance account under item 1 of the table in
6
subsection 294-25(1) of that Act exceeds the amount that
7
would, apart from this section, be the amount of that debit.
8
(2) Despite column 2 of item 2 of the table in subsection 294-80(1) of
9
the Income Tax Assessment Act 1997, the amount of the transfer
10
balance debit is instead equal to the sum worked out under
11
paragraph (1)(b) of this section.
12
18 Paragraph 294-110(1)(b)
13
Repeal the paragraph, substitute:
14
(b) either:
15
(i) at a time (the cessation time) in the pre-commencement
16
period, the asset ceases to be a segregated current
17
pension asset of the fund; or
18
(ii) at the start of 1 July 2017 (also the cessation time), the
19
asset ceases to be a segregated current pension asset of
20
the fund because it supports a superannuation income
21
stream covered by subsection 307-80(3) of the Income
22
Tax Assessment Act 1997; and
23
19 At the end of Subdivision 294-B
24
Add:
25
294-125 Pooled superannuation trust using proportionate or
26
alternative exemption method--deemed sale and
27
purchase of CGT asset
28
Application
29
(1) This section applies in relation to a CGT asset of a trust if:
30
(a) the trust is a pooled superannuation trust throughout the
31
pre-commencement period; and
32
(b) either of the following is greater than nil:
33
Schedule 1 Amendments relating to superannuation reform package
Part 1 Amendments
10
Treasury Laws Amendment (2017 Measures No. 2) Bill 2017
No. , 2017
(i) the proportion mentioned in subsection 295-400(1) of
1
the Income Tax Assessment Act 1997 in respect of the
2
trust for the 2016-17 income year;
3
(ii) if the trustee has made a choice under
4
subsection 295-400(3) of that Act--the percentage
5
mentioned in subsection 295-400(4) of that Act in
6
respect of the trust for the 2016-17 income year; and
7
(c) the trust held the asset throughout the pre-commencement
8
period; and
9
(d) the trustee of the trust makes a choice for the purposes of this
10
paragraph in respect of the asset in accordance with
11
subsection (2).
12
(2) A choice made for the purposes of paragraph (1)(d):
13
(a) is to be in the approved form; and
14
(b) can only be made on or before the day by which the trustee of
15
the trust is required to lodge the trust's income tax return for
16
the 2016-17 income year; and
17
(c) cannot be revoked.
18
Deemed sale and purchase
19
(3) For the purposes of Parts 3-1 and 3-3 of the Income Tax
20
Assessment Act 1997, the trust is taken:
21
(a) to have sold, immediately before 1 July 2017, the asset for a
22
consideration equal to its market value; and
23
(b) to have purchased the asset again just after that sale for a
24
consideration equal to its market value.
25
294-130 Pooled superannuation trusts using proportionate or
26
alternative exemption method--disregard initial capital
27
gain but recognise deferred notional gain
28
Application
29
(1) This section applies in relation to a CGT asset of a pooled
30
superannuation trust if:
31
(a) section 294-125 applies in relation to the CGT asset; and
32
(b) as a result of paragraph 294-125(3)(a), the trust makes a
33
capital gain in respect of the asset (disregarding this section);
34
and
35
Amendments relating to superannuation reform package Schedule 1
Amendments Part 1
No. , 2017
Treasury Laws Amendment (2017 Measures No. 2) Bill 2017
11
(c) the trustee of the trust makes a choice for the purposes of this
1
paragraph in respect of the asset in accordance with
2
subsection (2).
3
(2) A choice made for the purposes of paragraph (1)(c):
4
(a) is to be in the approved form; and
5
(b) can only be made on or before the day by which the trustee of
6
the trust is required to lodge the trust's income tax return for
7
the 2016-17 income year; and
8
(c) cannot be revoked.
9
Disregard initial capital gain
10
(3) Disregard the capital gain mentioned in paragraph (1)(b).
11
Recognition of deferred notional gain
12
(4) The deferred notional gain is the 2016-17 non-exempt proportion
13
of the amount of the trust's net capital gain for the 2016-17 income
14
year determined on the assumptions that:
15
(a) subsection (3) of this section does not apply; and
16
(b) the trust made no capital gains in that income year other than
17
the gain mentioned in paragraph (1)(b); and
18
(c) the trust made no capital losses in that income year; and
19
(d) the trust had no previously unapplied net capital losses from
20
earlier income years.
21
(5) For the purposes of Division 102 of the Income Tax Assessment
22
Act 1997, if a realisation event happens to the asset in an income
23
year that starts on or after 1 July 2017:
24
(a) treat the trust as having made a capital gain in that income
25
year equal to the deferred notional gain; and
26
(b) disregard section 102-20 of that Act in respect of that capital
27
gain; and
28
(c) treat that capital gain as not being a discount capital gain.
29
(6) Section 295-400 of the Income Tax Assessment Act 1997 does not
30
apply to the amount by which a net capital gain is increased (or
31
comes into existence) as a result of subsection (5).
32
(7) In this section:
33
Schedule 1 Amendments relating to superannuation reform package
Part 1 Amendments
12
Treasury Laws Amendment (2017 Measures No. 2) Bill 2017
No. , 2017
2016-17 non-exempt proportion means:
1
(a) unless paragraph (b) applies--1 minus the proportion
2
mentioned in subsection 295-400(1) of the Income Tax
3
Assessment Act 1997; or
4
(b) if the trustee has made a choice under subsection 295-400(3)
5
of that Act--the percentage worked out by subtracting the
6
percentage mentioned in subsection 295-400(4) of that Act in
7
respect of the trust for the 2016-17 income year from 100%.
8
deferred notional gain has the meaning given by subsection (4).
9
Legislation Act 2003
10
20 Paragraph 15J(2)(fa)
11
Repeal the paragraph.
12
21 After paragraph 15J(2)(f)
13
Insert:
14
(fa) if the instrument is a regulation relating to superannuation
15
(other than a regulation to which section 7 of the
16
Superannuation (Objective) Act 2017 does not apply)--
17
contain a statement of compatibility prepared under
18
subsection 7(1) of that Act; and
19
Superannuation Guarantee (Administration) Act 1992
20
22 Subsection 15(5) (definition of concessional contributions
21
cap)
22
Omit "the concessional", substitute "the basic concessional".
23
Taxation Administration Act 1953
24
23 Paragraph 286-80(2)(a) in Schedule 1
25
After "subsection 286-75(1),", insert "(2AA),".
26
24 Section 298-10 in Schedule 1
27
Omit "The Commissioner may do so in any other notice he or she gives
28
to the entity.".
29
Amendments relating to superannuation reform package Schedule 1
Amendments Part 1
No. , 2017
Treasury Laws Amendment (2017 Measures No. 2) Bill 2017
13
Treasury Laws Amendment (Fair and Sustainable
1
Superannuation) Act 2016
2
25 Item 9 of Schedule 3
3
Before "The amendments", insert "(1)".
4
26 Item 9 of Schedule 3
5
Before "this Schedule", insert "items 1, 2 and 6 of".
6
27 At the end of item 9 of Schedule 3
7
Add:
8
(2)
The amendments made by items 3, 4, 7 and 8 of this Schedule apply in
9
relation to the financial year starting on 1 July 2017 and later financial
10
years.
11
(3)
The amendment made by item 5 of this Schedule applies in relation to
12
non-concessional contributions for the 2013-2014 financial year and
13
later financial years.
14
28 Item 28 of Schedule 8
15
Repeal the item, substitute:
16
28 Application of amendments
17
(1)
The amendments made by this Schedule apply in relation to the
18
2017-18 income year and later income years.
19
(2)
The amendments made by items 19, 26 and 27 of this Schedule also
20
apply during the period:
21
(a) starting on the start of the day on which the Bill that became
22
the Treasury Laws Amendment (2017 Measures No. 2) Act
23
2017 was introduced into the House of Representatives; and
24
(b) ending just before 1 July 2017.
25
Schedule 1 Amendments relating to superannuation reform package
Part 2 Application provisions
14
Treasury Laws Amendment (2017 Measures No. 2) Bill 2017
No. , 2017
Part 2--Application provisions
1
Income Tax (Transitional Provisions) Act 1997
2
29 Section 294-10
3
Before "Division 294", insert "(1)".
4
30 At the end of section 294-10
5
Add:
6
(2) Subject to section 294-55, the amendments of Division 294 of the
7
Income Tax Assessment Act 1997 made by Schedule 1 to the
8
Treasury Laws Amendment (2017 Measures No. 2) Act 2017 apply
9
on and after 1 July 2017.
10
31 After section 294-30
11
Insert:
12
294-55 Repayment of limited recourse borrowing arrangements
13
(1) Despite subsection 294-10(2), a transfer balance credit arises under
14
item 4 of the table in subsection 294-25(1) of the Income Tax
15
Assessment Act 1997 only in relation to a borrowing that arises
16
under a contract entered into on or after 1 July 2017.
17
(2) For the purposes of subsection (1), a borrowing (the new
18
borrowing) that arises under a contract entered into on or after
19
1 July 2017 is treated as if it arose under a contract entered into
20
before 1 July 2017 if:
21
(a) the new borrowing is a refinancing of a borrowing (the old
22
borrowing) that was made under a contract:
23
(i) entered into before 1 July 2017; and
24
(ii) covered by the exception in subsection 67A(1) of the
25
Superannuation Industry (Supervision) Act 1993 (which
26
is about limited recourse borrowing arrangements); and
27
(b) the new borrowing is secured by the same asset or assets as
28
the old borrowing; and
29
Amendments relating to superannuation reform package Schedule 1
Application provisions Part 2
No. , 2017
Treasury Laws Amendment (2017 Measures No. 2) Bill 2017
15
(c) the amount of the new borrowing at the time it is first made
1
equals, or is less than, the outstanding balance on the old
2
borrowing just before the refinancing.
3
32 Application of amendments
4
(1)
The amendments made by items 1, 15, 16 and 22 of this Schedule apply
5
in relation to working your concessional contributions cap for the
6
2019-2020 financial year and later financial years.
7
(2)
The amendments made by items 2, 10 and 11 of this Schedule apply in
8
relation to the financial year starting on 1 July 2017 and later financial
9
years.
10
(3)
The amendments made by items 13 and 14 of this Schedule to terms
11
defined in Schedule 11 to the Treasury Laws Amendment (Fair and
12
Sustainable Superannuation) Act 2016 apply in a provision of an Act,
13
regulation or instrument in the same way as that provision applies.
14
(4)
The amendment made by item 23 of this Schedule applies in relation to
15
a notice mentioned in subsection 286-75(2AA) in Schedule 1 to the
16
Taxation Administration Act 1953 that is required to be given on or after
17
the commencement of section 1 of the Treasury Laws Amendment
18
(2017 Measures No. 2) Act 2017.
19
Schedule 2 Amendments relating to insolvency
16
Treasury Laws Amendment (2017 Measures No. 2) Bill 2017
No. , 2017
Schedule 2--Amendments relating to
1
insolvency
2
3
Bankruptcy Act 1966
4
1 Paragraphs 60-20(4)(a) to (c) of Schedule 2
5
Repeal the paragraphs, substitute:
6
(a) the trustee employs or engages a person to provide services
7
in connection with the administration of the estate; and
8
(b) a related entity of the trustee directly or indirectly derives a
9
profit or advantage as a result of that employment or
10
engagement; and
11
(c) one of the following is satisfied:
12
(i) the trustee does not know, and could not reasonably be
13
expected to know, that the related entity would derive
14
that profit or advantage;
15
(ii) the creditors, by resolution, agree to the related entity
16
deriving the profit or advantage;
17
(iii) it is not reasonably practicable in all the circumstances
18
to obtain the agreement, by resolution, of the creditors
19
to the related entity deriving the profit or advantage and
20
the cost of employing or engaging the person to provide
21
the services is reasonable in all the circumstances.
22
2 After subsection 60-20(4) of Schedule 2
23
Insert:
24
(4A) Despite paragraph (2)(c), subsection (1) does not apply to the
25
extent that a related entity of the trustee directly or indirectly
26
derives a profit or advantage:
27
(a) from remuneration paid to the trustee in accordance with
28
section 60-5 of this Schedule; or
29
(b) from a profit or advantage covered by subsection (4).
30
Amendments relating to insolvency Schedule 2
No. , 2017
Treasury Laws Amendment (2017 Measures No. 2) Bill 2017
17
Corporations Act 2001
1
3 Paragraph 411(9)(a)
2
Omit "section 425,", substitute "sections 422A, 422B and 425,".
3
4 Subparagraph 1274(2)(a)(iab)
4
Repeal the subparagraph.
5
5 Section 40-110 of Schedule 2
6
Omit "this section", substitute "this Subdivision".
7
6 Paragraphs 60-20(4)(a) to (c) of Schedule 2
8
Repeal the paragraphs, substitute:
9
(a) the external administrator employs or engages a person to
10
provide services in connection with the external
11
administration of the company; and
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(b) a related entity of the external administrator directly or
13
indirectly derives a profit or advantage as a result of that
14
employment or engagement; and
15
(c) one of the following is satisfied:
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(i) the external administrator does not know, and could not
17
reasonably be expected to know, that the related entity
18
would derive that profit or advantage;
19
(ii) the creditors, by resolution, agree to the related entity
20
deriving the profit or advantage;
21
(iii) it is not reasonably practicable in all the circumstances
22
to obtain the agreement, by resolution, of the creditors
23
to the related entity deriving the profit or advantage and
24
the cost of employing or engaging the person to provide
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the services is reasonable in all the circumstances.
26
7 After subsection 60-20(4) of Schedule 2
27
Insert:
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(4A) Despite paragraph (2)(c), subsection (1) does not apply to the
29
extent that a related entity of the external administrator directly or
30
indirectly derives a profit or advantage:
31
(a) from remuneration paid to the external administrator in
32
accordance with section 60-5 of this Schedule; or
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Schedule 2 Amendments relating to insolvency
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Treasury Laws Amendment (2017 Measures No. 2) Bill 2017
No. , 2017
(b) from a profit or advantage covered by subsection (4).
1
8 Subsection 70-6(4) of Schedule 2
2
Omit "subsection (6)", substitute "subsection (5)".
3