TAXATION (DEFICIT REDUCTION) ACT (NO. 2) 1993 TAXATION (DEFICIT REDUCTION) ACT (NO. 2) 1993 - TABLE OF PROVISIONS PART 1--PRELIMINARY 1. Short title [see Note 1] 2. Commencement [see Note 1] PART 2--AMENDMENT OF THE FRINGE BENEFITS TAX ACT 1986 TO GIVE EFFECT 3. Object of Part 4. Principal Act 5. Rate of tax 6. Application of amendments PART 3--AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936 Division 1--Principal Act 7. Principal Act Division 2--Amendments to allow deductions to registered organisations for expenditure incurred in gaining the investment component of certain premiums 8. Object of Division 9. Interpretation 10. Insertion of new section 11. Application of amendments Division 3--Amendments relating to rebates for bonuses received by holders of life assurance policies issued by friendly societies TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993Subdivision A--Object of Division 12. Object of Division Subdivision B--Increase for 1995-96, 1996-97, 1997-98, 1998-99 and 1999-2000 13. Rebate in respect of amounts assessable under section 26AH Subdivision D--Increase for 2000-2001 and later years 15. Rebate in respect of amounts assessable under section 26AH PART 4--AMENDMENT OF THE INCOME TAX RATES ACT 1986 Division 1--Principal Act 16. Principal Act Division 2--Registered organisations TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993Subdivision A--Preliminary 17. Object of Division Subdivision B--Rate for 1994-95, 1995-96, 1996-97, 1997-98, 1998-99 and 1999-2000 18. Rates of tax payable by companies Subdivision C--Rate for 2000-01 and later years 19. Rates of tax payable by companies TAXATION (DEFICIT REDUCTION) ACT (NO. 2) 1993 - LONG TITLE An Act to amend the law relating to taxation TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SECT 1 Short title [see Note 1] This Act may be cited as the Taxation (Deficit Reduction) Act (No. 2) 1993. TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SECT 2 Commencement [see Note 1] (1) Subject to this section, this Act commences on the day on which it receives the Royal Assent. (2) Subdivision B of Division 3 of Part 3 commences on 1 July 1995. (3) Subdivision D of Division 3 of Part 3 commences on 1 July 2000. (4) Subdivision C of Division 2 of Part 4 commences on 1 July 2000. to an increase in the rate of FBT TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SECT 3 Object of Part The object of this Part is to increase the rate of fringe benefits tax from 48.25% to 48.4%. TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SECT 4 Principal Act In this Part, Principal Act means the Fringe Benefits Tax Act 1986. TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SECT 5 Rate of tax Section 6 of the Principal Act is amended by omitting "48.25%" and substituting "48.4%". TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SECT 6 Application of amendments The amendments made by this Part apply to the year of tax beginning on 1 April 1994 and all later years of tax. TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993Division 1--Principal Act TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SECT 7 Principal Act In this Part, Principal Act means the Income Tax Assessment Act 1936. TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993Division 2--Amendments to allow deductions to registered organisations for expenditure incurred in gaining the investment component of certain premiums TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SECT 8 Object of Division The object of this Division is to allow deductions to registered organisations for expenditure incurred in gaining the investment component of certain premiums. TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SECT 9 Interpretation Section 116E of the Principal Act is amended by inserting the following definitions in subsection (1): investment component, in relation to a premium received in respect of a life assurance policy, means so much of the premium as does not consist of a risk component. risk component, in relation to a premium received in respect of a life assurance policy, means the risk component (if any) of the premium worked out on the basis specified in the regulations. TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SECT 10 Insertion of new section After section 116HA of the Principal Act the following section is inserted: 116HAA Deductions to be allowable for expenditure incurred in gaining the investment component of certain premiums Premiums to which section applies (1) This section applies to premiums received in respect of life assurance policies other than: (a) superannuation premiums; or (b) premiums received in respect of eligible policies; or (c) specified roll-over amounts; or (d) premiums exempt from tax under section 23AH. Assumption to be made in determining allowable deductions (2) For the purposes of determining the deductions allowable to a registered organization, the investment component of a premium to which this section applies is to be treated as assessable income. Actuary's certificate (3) This section does not apply to premiums derived by a registered organization in a year of income unless the organization obtains a certificate by an authorised actuary with respect to the operation of this section. The certificate must be in a form approved in writing by the Commissioner. The organization must obtain the certificate: (a) before the date of lodgment of the organization's return of income of the year of income; or (b) within such further time as the Commissioner allows. Definition (4) In this section: "authorised actuary "means a Fellow or an Accredited Member of the Institute of Actuaries of Australia. TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SECT 11 Application of amendments The amendments made by this Division apply in relation to expenditure incurred by a registered organisation on or after 1 July 1994. TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993Division 3--Amendments relating to rebates for bonuses received by holders of life assurance policies issued by friendly societies TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993Subdivision A--Object of Division TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SECT 12 Object of Division The object of this Division is to increase the rebates for bonuses paid to holders of life assurance policies issued by friendly societies. TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993Subdivision B--Increase for 1995-96, 1996-97, 1997-98, 1998-99 and 1999-2000 TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SECT 13 Rebate in respect of amounts assessable under section 26AH (1) Section 160AAB of the Principal Act is amended by omitting "30%" from paragraph (a) of the definition of statutory percentage in subsection (1) and substituting "33%". (2) The amendments made by subsection (1) apply to amounts received (within the meaning of section 26AH of the Principal Act) on or after 1 July 1995. TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993Subdivision D--Increase for 2000-2001 and later years TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SECT 15 Rebate in respect of amounts assessable under section 26AH (1) Section 160AAB of the Principal Act is amended: (a) by omitting from subsection (1) the definition of statutory percentage; (b) by omitting from subsections (2) to (6) (inclusive) "the statutory percentage" (wherever occurring) and substituting "39%". (2) The amendments made by subsection (1) apply to amounts received (within the meaning of section 26AH of the Principal Act) on or after 1 July 2000. TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993Division 1--Principal Act TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SECT 16 Principal Act In this Part, Principal Act means the Income Tax Rates Act 1986. TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993Division 2--Registered organisations TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993Subdivision A--Preliminary TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SECT 17 Object of Division The object of this Division is to increase the rate of tax payable by a registered organisation in respect of its eligible insurance business. TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993Subdivision B--Rate for 1994-95, 1995-96, 1996-97, 1997-98, 1998-99 and 1999-2000 TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SECT 18 Rates of tax payable by companies (1) Section 23 of the Principal Act is amended by omitting from paragraph (4)(b) "30%" and substituting "33%". (2) The amendments made by subsection (1) apply to assessments in respect of income of the 1994-95 year of income, of the 1995-96 year of income, of the 1996-97 year of income, of the 1997-98 year of income, of the 1998-99 year of income and of the 1999-2000 year of income. TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993Subdivision C--Rate for 2000-01 and later years TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993 - SECT 19 Rates of tax payable by companies (1) Section 23 of the Principal Act is amended by omitting from paragraph (4)(b) "33%" and substituting "39%". (2) The amendment made by subsection (1) applies to assessments in respect of income of the 2000-01 year of income and of all later years of income. TAXATION (DEFICIT REDUCTION) ACT (NO. 2) 1993 - NOTES Compilation Information Taxation (Deficit Reduction) Act (No. 2) 1993 Act No. 55 of 1993 as amended This compilation was prepared on 1 July 2000taking into account amendments up to Act No. 58 of 2000 The text of any of those amendments not in force on that date is appended in the Notes section Prepared by the Office of Legislative Drafting,Attorney-General's Department, Canberra TAXATION (DEFICIT REDUCTION) ACT (NO. 2) 1993 - NOTES TAXATION (DEFICIT REDUCTION) ACT (No. 2) 1993Notes to the Taxation (Deficit Reduction) Act (No. 2) 1993 Note 1 The Taxation (Deficit Reduction) Act (No. 2) 1993 as shown in this reprint comprises Act No. 55, 1993 amended as indicated in the Tables below. Table of Acts Act Number and year Date of Assent Date of commencement Application, saving or transitional provisions Taxation (Deficit Reduction) Act (No. 2) 1993 55, 1993 27 Oct 1993 S. 13: 1 July 1995Ss. 15 and 19: 1 July 2000 Remainder: Royal Assent Taxation Laws Amendment (Budget Measures) Act 1995 94, 1995 27 July 1995 Schedule 3 (Part 2 [items 5, 6]): 1 July 1995Schedule 9: Royal AssentRemainder: 9 May 1995 -- Taxation Laws Amendment Act (No. 4) 1997 174, 1997 21 Nov 1997 Schedule 8: 1 July 1997Remainder: Royal Assent Taxation Laws Amendment Act (No. 2) 2000 58, 2000 31 May 2000 Schedule 7: Royal Assent (a) -- (a) The Taxation (Deficit Reduction) Act (No. 2) 1993 was amended by Schedule 7 only of the Taxation Laws Amendment Act (No. 2) 2000, subsection 2(1) of which provides as follows: (1) Subject to this section, this Act commences on the day on which it receives the Royal Assent. TAXATION (DEFICIT REDUCTION) ACT (NO. 2) 1993 - NOTES Table of Amendments ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted Provision affected How affected S. 2 am. No. 94, 1995; No. 174, 1997; No. 58, 2000 Heading to Subdiv. B of Div. 3 of Part 3 am. No. 94, 1995 rs. No. 174, 1997 Subdiv. C of Div. 3 of Part 3 (s. 14) rep. No. 94, 1995 S. 14 rep. No. 94, 1995 Heading to Subdiv. D of Div. 3 of Part 3 rs. No. 174, 1997 S. 15 am. No. 174, 1997 Heading to Subdiv. B of Div. 2 of Part 4 am. No. 94, 1995 rs. No. 174, 1997; No. 58, 2000 S. 18 am. No. 94, 1995; No. 174, 1997; No. 58, 2000 Heading to Subdiv. C of Div. 2 of Part 4 rs. No. 174, 1997; No. 58, 2000 Subdiv. C of Div. 2 of Part 4 (s. 19) rs. No. 94, 1995 S. 19 rs. No. 94, 1995 am. No. 174, 1997; No. 58, 2000 Subdiv. D of Div. 2 of Part 4 (s. 20) rep. No. 94, 1995 S. 20 rep. No. 94, 1995