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This is a Bill, not an Act. For current law, see the Acts databases.
Presented and read a first time
Tax Laws Amendment (2008 Measures No. 1) Bill 2008
No. , 2008
(Treasury)
A Bill for an Act to amend the law relating to taxation, and for related purposes
Tax Laws Amendment (2008 Measures No. 1) Bill 2008 No. , 2008
Tax Laws Amendment (2008 Measures No. 1) Bill 2008 No. , 2008
Contents
1 Short title 1
2 Commencement 1
3 Schedule(s) 2
Schedule 1--Political contributions and gifts 3
Income Tax Assessment Act 1936 3
Income Tax Assessment Act 1997 3
Schedule 2--Superannuation lump sum paid to a member having a terminal medical condition 6
Part 1--Amendments 6
Income Tax Assessment Act 1997 6
Income Tax (Transitional Provisions) Act 1997 7
Part 2--Application 8
Schedule 3--Capital expenditure for the establishment of trees in carbon sink forests 9
Part 1--Income years 2007-08 to 2011-12 9
Income Tax Assessment Act 1997 9
Part 2--Income year 2012-13 and later income years 16
Income Tax Assessment Act 1997 16
Schedule 4--Tax offset for Equine Workers Hardship Wage Supplement Payments 21
Income Tax Assessment Act 1936 21
Income Tax Assessment Act 1997 21
Schedule 5--Tobacco industry exit grants 22
Income Tax Assessment Act 1997 22
Schedule 6--Farm management deposits 23
Income Tax Assessment Act 1936 23
Schedule 3 Capital expenditure for the establishment of trees in carbon sink forests
Part 2 Income year 2012-13 and later income years
Capital expenditure for the establishment of trees in carbon sink forests Schedule 3
Income years 2007-08 to 2011-12 Part 1
Tax Laws Amendment (2008 Measures No. 1) Bill 2008 No. , 2008
Tax Laws Amendment (2008 Measures No. 1) Bill 2008 No. , 2008
Tax Laws Amendment (2008 Measures No. 1) Bill 2008 No. , 2008
A Bill for an Act to amend the law relating to taxation, and for related purposes
The Parliament of Australia enacts:
1 Short title
This Act may be cited as the Tax Laws Amendment (2008 Measures No. 1) Act 2008.
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.
Commencement information
Column 1
Column 2
Column 3
Provision(s)
Commencement
Date/Details
1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table
The day on which this Act receives the Royal Assent.
2. Schedules 1 and 2
The day on which this Act receives the Royal Assent.
3. Schedule 3, Part 1
The day on which this Act receives the Royal Assent.
4. Schedule 3, Part 2
1 July 2012.
1 July 2012
5. Schedules 4 to 6
The day on which this Act receives the Royal Assent.
Note: This table relates only to the provisions of this Act as originally passed by both Houses of the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent.
(2) Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or edited in any published version of this Act.
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.
Schedule 1--Political contributions and gifts
Income Tax Assessment Act 1936
1 Subsections 78A(2), (3) and (4)
Omit "fund, authority, institution or person" (wherever occurring), substitute "fund, authority or institution".
Income Tax Assessment Act 1997
2 Section 12-5 (table item headed "political parties")
Repeal the item, substitute:
political contributions and gifts
deductions for
26-22
3 After section 26-20
Insert:
26-22 Political contributions and gifts
You cannot deduct political contributions or gifts
(1) You cannot deduct under this Act:
(a) a contribution (including a membership fee) or gift to a political party that is registered under Part XI of the Commonwealth Electoral Act 1918 or under corresponding State or Territory legislation; or
(b) a contribution or gift to an individual when the individual is a candidate in an election for members of:
(i) an *Australian legislature; or
(ii) a *local governing body; or
(c) a contribution or gift to an individual who is a member of:
(i) an Australian legislature; or
(ii) a local governing body.
Exception for employees and office holders
(2) However, subsection (1) does not apply to a loss or outgoing incurred in gaining or producing assessable income from which an amount is required to be withheld under section 12-35 or 12-45 in Schedule 1 to the Taxation Administration Act 1953.
Note: These provisions of the Taxation Administration Act 1953 require amounts to be withheld from income of employees and office holders.
Starting and stopping being a candidate
(3) For the purposes of this section, an individual:
(a) starts being a candidate when the individual's intention to be or to attempt to be a candidate for the election is publicly available; and
(b) stops being a candidate at the earlier of:
(i) the time when the result of the election is declared or otherwise publicly announced by an entity (an electoral official) authorised under the relevant electoral legislation; and
(ii) the time (if any) when the individual's intention to no longer be a candidate for the election is publicly available.
Starting being a member
(4) An individual who becomes a member as a result of an election (including an election that is later declared void) is taken to start being a member when the individual's election as a member is declared or otherwise publicly announced by an electoral official.
4 Subsection 30-5(1)
Omit "a contribution or gift to a political party, independent candidate or member, or".
5 Subsection 30-5(1) (note 1)
Omit "Note 1", substitute "Note".
6 Subsection 30-5(1) (note 2)
Repeal the note.
7 Subsection 30-15(2) (note 1)
Omit "Note 1", substitute "Note".
8 Subsection 30-15(2) (note 2)
Repeal the note.
9 Subdivision 30-DA
Repeal the Subdivision.
10 Subsection 30-315(2) (table item 87)
Repeal the item.
11 At the end of section 110-38
Add:
(6) Expenditure does not form part of any element of the cost base to the extent that section 26-22 prevents it being deducted.
Note: Section 26-22 denies deductions for political contributions and gifts.
12 After subsection 110-55(9E)
Insert:
(9F) Expenditure does not form part of the reduced cost base to the extent that section 26-22 prevents it being deducted.
Note: Section 26-22 denies deductions for political contributions and gifts.
13 Subsection 995-1(1) (definition of independent candidate)
Repeal the definition.
14 Subsection 995-1(1) (definition of independent member)
Repeal the definition.
15 Application
The amendments made by this Schedule apply in relation to contributions or gifts made on or after 1 July 2008.
Schedule 2--Superannuation lump sum paid to a member having a terminal medical condition
Part 1--Amendments
Income Tax Assessment Act 1997
1 Section 11-55 (table item headed "superannuation")
After:
roll-over superannuation benefits
306-5
insert:
superannuation lump sum for recipient having terminal medical condition
303-10
2 At the end of Division 303
Add:
303-10 Superannuation lump sum member benefit paid to member having a terminal medical condition
(1) This section applies to a *superannuation member benefit that:
(a) is a *superannuation lump sum; and
(b) is:
(i) paid from a *complying superannuation plan; or
(ii) a *superannuation guarantee payment, a *small superannuation account payment, an *unclaimed money payment, a *superannuation co-contribution benefit payment or a *superannuation annuity payment.
(2) The lump sum is not assessable income and is not *exempt income if a *terminal medical condition exists in relation to you when you receive the lump sum or within 90 days after you receive it.
Note: For a lump sum you receive in the 2007-08 financial year, the period of 90 days may be extended until 30 June 2008: see section 303-10 of the Income Tax (Transitional Provisions) Act 1997.
3 Subsection 995-1(1)
Insert:
terminal medical condition has the meaning given by the regulations.
Income Tax (Transitional Provisions) Act 1997
4 After Division 302
Insert:
Division 303--Superannuation benefits paid in special circumstances
Table of sections
303-10 Superannuation lump sum paid to member having a terminal medical condition
303-10 Superannuation lump sum member benefit paid to member having a terminal medical condition
(1) This section applies to a superannuation member benefit that you receive during the 2007-08 financial year and that:
(a) is a superannuation lump sum; and
(b) is:
(i) paid from a complying superannuation plan; or
(ii) a superannuation guarantee payment, a small superannuation account payment, an unclaimed money payment, a superannuation co-contribution benefit payment or a superannuation annuity payment.
(2) The lump sum is not assessable income and is not exempt income if a terminal medical condition exists in relation to you at a time in the period:
(a) starting when you receive the lump sum; and
(b) ending at the later of:
(i) 90 days after you receive it; and
(ii) 30 June 2008.
Part 2--Application
5 Application
The amendments made by this Schedule apply to payments made on or after 1 July 2007.
Schedule 3--Capital expenditure for the establishment of trees in carbon sink forests
Part 1--Income years 2007-08 to 2011-12
Income Tax Assessment Act 1997
1 Section 12-5 (table item headed "capital allowances")
After:
telecommunications site access rights
Subdivision 40-B
insert:
trees in carbon sink forests
Subdivision 40-J
2 Section 12-5 (after table item headed "travel expenses")
Insert:
trees in carbon sink forests
see capital allowances
3 Section 40-10 (at the end of the table)
Add:
2.4
Capital expenditure for establishing trees in carbon sink forests
You can deduct amounts for capital expenditure for the establishment of trees in carbon sink forests.
Subdivision 40-J
4 Subsection 40-50(1)
Omit "or 40-G (about capital expenditure of primary producers and other landholders)", substitute ", 40-G (about capital expenditure of primary producers and other landholders) or 40-J (about capital expenditure for the establishment of trees in carbon sink forests)".
5 After subsection 40-630(2B)
Insert:
Exception: deduction available under Subdivision 40-J
(2C) You cannot deduct an amount under this Subdivision for capital expenditure if any entity can deduct an amount for that expenditure for any income year under Subdivision 40-J.
6 At the end of Division 40
Add:
Subdivision 40-J--Capital expenditure for the establishment of trees in carbon sink forests
Guide to Subdivision 40-J
40-1000 What this Subdivision is about
You can deduct amounts for capital expenditure incurred for establishing trees that meet the requirements for constituting a carbon sink forest.
Table of sections
Operative provisions
40-1005 Deduction for expenditure for establishing trees in carbon sink forests
40-1010 Expenditure for establishing trees in carbon sink forests
40-1015 Carbon sequestration by trees
40-1020 Certain expenditure disregarded
40-1025 Non-arm's length transactions
Operative provisions
40-1005 Deduction for expenditure for establishing trees in carbon sink forests
(1) You can deduct an amount for an income year if:
(a) you incur capital expenditure that is covered under section 40-1010 in relation to particular trees established in the income year; and
(b) you satisfy a condition in subsection (5) for the trees when they are established.
(2) The amount of the deduction is the amount of the expenditure.
(3) You can deduct an amount for an income year if:
(a) you incur capital expenditure in the income year or an earlier income year for establishing particular trees; and
(b) that expenditure is not covered under section 40-1010 in relation to the trees, because some or all of the trees are established after the end of the income year; and
(c) the trees established after the end of the income year are established within 4 months after the end of the income year; and
(d) you could deduct the amount for the income year under subsection (1) in respect of the expenditure, assuming that, for the purposes of paragraphs 40-1010(1)(a) and (2)(a), the income year ended 4 months after it actually ended.
(4) If:
(a) you can deduct an amount for an income year under subsection (3) in relation to particular trees; and
(b) you incur capital expenditure in the next income year for establishing other trees;
in determining whether you can deduct an amount under subsection (1) for the next income year in respect of the other trees, for the purposes of paragraph 40-1010(2)(a), disregard the trees mentioned in paragraph (a).
(5) The conditions are as follows:
Conditions for deduction for establishing trees in carbon sink forest
Item
Condition
1
You own the trees and any holder of a lease, lesser interest or licence relating to the land occupied by the trees does not use the land for the primary and principal purpose of *carbon sequestration by the trees.
2
The trees occupy land you hold under a lease, or a *quasi-ownership right granted by an *exempt Australian government agency or an *exempt foreign government agency, and:
(a) the lease or quasi-ownership right enables you to use the land for the primary and principal purpose of *carbon sequestration by the trees; and
(b) any holder of a lesser interest or licence relating to the land does not use the land for the primary and principal purpose of carbon sequestration by the trees.
3
You:
(a) hold a licence relating to the land occupied by the trees; and
(b) use the land for the primary and principal purpose of *carbon sequestration by the trees, as a result of holding the licence.
40-1010 Expenditure for establishing trees in carbon sink forests
(1) Expenditure is covered under this section in relation to particular trees if:
(a) the trees are established in an income year; and
(b) you incur the expenditure in the income year or an earlier income year for establishing the trees; and
(c) you are carrying on a *business in the income year; and
(d) your primary and principal purpose for establishing the trees is *carbon sequestration by the trees (see section 40-1015); and
(e) your purposes for establishing the trees do not include any of the following:
(i) felling the trees;
(ii) using the trees for *commercial horticulture; and
(f) you do not incur the expenditure under:
(i) a *managed investment scheme; or
(ii) a *forestry managed investment scheme; and
(g) all of the conditions in subsection (2) are satisfied for the trees; and
(h) you give the Commissioner, in accordance with subsection (4), a statement that:
(i) sets out all information necessary to determine whether all of the conditions in subsection (2) are satisfied for the trees; and
(ii) is in the *approved form.
(2) The conditions are as follows:
(a) at the end of the income year, the trees occupy a continuous land area in Australia of 0.2 hectares or more;
(b) at the time the trees are established, it is more likely than not that they will:
(i) attain a crown cover of 20% or more; and
(ii) reach a height of at least 2 metres;
(c) on 1 January 1990, the area occupied by the trees was clear of other trees that:
(i) attained, or were more likely than not to attain, a crown cover of 20% or more; and
(ii) reached, or were more likely than not to reach, a height of at least 2 metres;
(d) the establishment of the trees meets the requirements of the guidelines mentioned in subsection (3).
(3) The *Climate Change Minister must, by legislative instrument, make guidelines about environmental and natural resource management in relation to the establishment of trees for the purposes of *carbon sequestration.
(4) The statement mentioned in paragraph (1)(h) is to be given to the Commissioner no later than:
(a) if you lodge your *income tax return for the income year within 5 months after the end of the income year--the day you lodge that income tax return; or
(b) otherwise--5 months after the end of the income year.
(5) However, expenditure is not covered under this section if the *Climate Change Secretary gives the Commissioner a notice under subsection (6) in relation to the trees.
(6) The *Climate Change Secretary must give the Commissioner a notice in writing under this subsection if the Climate Change Secretary is satisfied that one or more of the conditions in subsection (2) have not been satisfied for the trees.
(7) A person may apply to the *AAT for review of a decision (as defined in the Administrative Appeals Tribunal Act 1975) of the *Climate Change Secretary to give a notice under subsection (6).
(8) The Commissioner may give the *Climate Change Secretary a copy of the statement mentioned in paragraph (1)(h), for the purposes of subsections (5), (6) and (7).
40-1015 Carbon sequestration by trees
Carbon sequestration by trees means the process by which trees absorb carbon dioxide from the atmosphere.
40-1020 Certain expenditure disregarded
In working out a deduction under this Subdivision in relation to the establishment of trees, disregard expenditure incurred:
(a) in draining swamp or low-lying land; or
(b) in clearing land.
40-1025 Non-arm's length transactions
If an entity incurred capital expenditure under an *arrangement and:
(a) there is at least one other party to the arrangement with whom the entity did not deal at *arm's length; and
(b) apart from this section, the amount of the expenditure would be more than the *market value of what it was for;
the amount of expenditure taken into account under this Subdivision is that market value.
7 After subsection 70-120(5)
Insert:
No deduction for carbon sink forests
(5A) You cannot deduct under this section so much of an amount you paid or incurred as is attributable to the establishment of trees for which any entity has deducted, or can deduct, an amount for any income year under Subdivision 40-J.
8 Subsection 995-1(1)
Insert:
carbon sequestration has the meaning given by section 40-1015.
9 Subsection 995-1(1)
Insert:
Climate Change Minister means the Minister administering the National Greenhouse and Energy Reporting Act 2007.
10 Subsection 995-1(1)
Insert:
Climate Change Secretary means the Secretary of the Department that administers the National Greenhouse and Energy Reporting Act 2007.
11 Application
The amendments made by this Part of this Schedule apply to the 2007-08 income year and later income years.
Part 2--Income year 2012-13 and later income years
Income Tax Assessment Act 1997
12 Subsections 40-1005(1), (2), (3) and (4)
Repeal the subsections, substitute:
(1) You can deduct an amount for an income year if:
(a) you or another entity incurred capital expenditure that is covered under section 40-1010 in relation to particular trees; and
(b) you satisfy a condition in subsection (5) for the trees for at least part of the income year; and
(c) you are carrying on a *business in the income year; and
(d) you use the land occupied by the trees for the primary and principal purpose of *carbon sequestration by the trees (see section 40-1015); and
(e) your purposes in using the land occupied by the trees do not include any of the following:
(i) felling the trees;
(ii) using the trees for *commercial horticulture; and
(f) you do not use the land in connection with:
(i) a *managed investment scheme; or
(ii) a *forestry managed investment scheme.
(2) The amount of the deduction is worked out under this formula:
where:
establishment expenditure is the amount of expenditure mentioned in subsection (1).
write-off days in income year is the number of days in the income year:
(a) that occur within the period:
(i) starting on the first day of the income year in which the trees are established; and
(ii) ending 14 years and 105 days after that day; and
(b) on which you use the land occupied by the trees for the primary and principal purpose of *carbon sequestration by the trees; and
(c) on which you satisfy a condition in subsection (5) for the trees.
write-off rate is 7%.
(3) You cannot deduct more in total than the amount of capital expenditure incurred for establishing the trees up to the time at which they are established.
13 Paragraph 40-1010(1)(b)
After "you incur", insert "or another entity incurs".
14 Paragraph 40-1010(1)(c)
Omit "you are", substitute "the entity incurring the expenditure (the establishing entity) is".
15 Paragraph 40-1010(1)(d)
Omit "your", substitute "the establishing entity's".
16 Paragraph 40-1010(1)(e)
Omit "your", substitute "the establishing entity's".
17 Paragraph 40-1010(1)(f)
Omit "you do", substitute "the establishing entity does".
18 Paragraph 40-1010(1)(h)
Omit "you give", substitute "the establishing entity gives".
19 Paragraph 40-1010(4)(a)
Repeal the paragraph, substitute:
(a) if the establishing entity lodges its *income tax return for the income year within 5 months after the end of the income year--the day the establishing entity lodges that income tax return; or
20 At the end of Subdivision 40-J
Add:
40-1030 Extra deduction for destruction of trees in carbon sink forest
(1) You can deduct the amount worked out under subsection (2) for an income year if:
(a) you or another entity incurred capital expenditure that is covered under section 40-1010 in relation to particular trees; and
(b) you use the land occupied by the trees for the primary and principal purpose of *carbon sequestration by the trees; and
(c) the trees are destroyed during the income year; and
(d) you satisfy a condition in subsection 40-1005(5) for the trees just before they are destroyed.
(2) Work out the amount of the deduction as follows:
Method statement
Step 1. Work out the total of the amounts you could have deducted under this Subdivision in relation to the trees for the period:
(a) starting on the first day of the income year in which the trees are established; and
(b) ending when the trees were destroyed;
assuming that, during that period, you satisfied a condition in the table in subsection 40-1005(5).
Step 2. Subtract from the expenditure that is covered under section 40-1010 in relation to the trees:
(a) the result from step 1; and
(b) any amount you received (under an insurance policy or otherwise) for the destruction.
The remaining amount (if positive) is your deduction under subsection (1).
(3) This deduction is in addition to any deduction for the income year under section 40-1005.
40-1035 Getting information if you acquire a carbon sink forest
(1) This section applies if:
(a) you or another entity incurred capital expenditure; and
(b) the expenditure is covered under section 40-1010 in relation to particular trees; and
(c) you begin to satisfy a condition in the table in subsection 40-1005(5) for the trees.
(2) You may give the last entity (if any) that satisfied a condition mentioned in subsection 40-1005(5) for the trees a written notice requiring the entity to give you any or all of the following information:
(a) the amount of the expenditure covered under section 40-1010 in relation to the trees;
(b) the income year in which the trees were established.
(3) The notice must:
(a) be given within 60 days of your beginning to satisfy the condition mentioned in paragraph (1)(c); and
(b) specify a period of at least 60 days within which the information must be given; and
(c) set out the effect of subsection (4).
Note: Subsections (5), (6) and (7) explain how this subsection operates if the entity to which the notice is to be given is a partnership.
Requirement to comply with notice
(4) The entity to whom the notice is given must not intentionally refuse or fail to comply with the notice.
Penalty: 10 penalty units.
Giving the notice to a partnership
(5) If the entity to whom the notice is given is a partnership:
(a) you may give it to the partnership by giving it to any of the partners (this does not limit how else you can give it); and
(b) the obligation to comply with the notice is imposed on each of the partners (not on the partnership), but may be discharged by any of them.
(6) A partner must not intentionally refuse or fail to comply with that obligation.
Penalty: 10 penalty units.
(7) Subsection (6) does not apply if another partner has already complied with that obligation.
Note: A defendant bears an evidential burden in relation to the matters in subsection (7), see subsection 13.3(3) of the Criminal Code.
Limits on giving a notice
(8) Only one notice can be given in relation to the same trees.
21 Application
The amendments made by this Part of this Schedule apply to the 2012-13 income year and later income years.
Schedule 4--Tax offset for Equine Workers Hardship Wage Supplement Payments
Income Tax Assessment Act 1936
1 Subsection 160AAA(1) (at the end of the definition of rebatable benefit)
Add:
; or (g) known as the Equine Workers Hardship Wage Supplement Payment.
Income Tax Assessment Act 1997
2 Section 13-1 (after table item headed "entrepreneurs' tax offset")
Insert:
Equine Workers Hardship Wage Supplement Payment
see social security and other benefit payments
3 Section 13-1 (table item headed "social security and other benefit payments")
After:
Cyclone Larry or Cyclone Monica income support payment
160AAA(3)
insert:
Equine Workers Hardship Wage Supplement Payment
160AAA(3)
4 Application
The amendments made by this Schedule apply in relation to Equine Workers Hardship Wage Supplement Payments received in the 2007-08 income year and later income years.
Schedule 5--Tobacco industry exit grants
Income Tax Assessment Act 1997
1 Section 11-10 (table item headed "sugar industry exit grants")
Repeal the item.
2 Section 11-15 (before table item headed "copyright collecting societies")
Insert:
agricultural industry exit grants
sugar industry exit grants.........
53-10
tobacco industry exit grants.........
53-10
3 Section 53-10 (after table item 4B)
Insert:
4C
Tobacco industry exit grant
The program known as the Tobacco Growers Adjustment Assistance Programme 2006
As a condition of receiving the grant, you entered into an undertaking not to become the owner or operator of any agricultural *enterprise within 5 years after receiving the grant
4 At the end of subsection 118-37(1)
Add:
; (g) a tobacco industry exit grant that you receive under the program known as the Tobacco Growers Adjustment Assistance Programme 2006 if, as a condition of receiving the grant, you entered into an undertaking not to become the owner or operator of any agricultural *enterprise within 5 years after receiving the grant.
5 Application of amendments
The amendments made by this Schedule apply to tobacco industry exit grants received in the 2006-07 income year and later income years.
Schedule 6--Farm management deposits
Income Tax Assessment Act 1936
1 Paragraphs 393-37(3)(b) and (c) in Schedule 2G
Repeal the paragraphs, substitute:
(b) at the time of the withdrawal, that owner is eligible for the issue of an exceptional circumstances certificate (within the meaning of subsection 8A(2) of the Farm Household Support Act 1992) that relates to a primary production business of that owner;
(c) by the end of 3 months after the end of the year of income in which the withdrawal is made, such an exceptional circumstances certificate is issued in respect of that owner;
(d) a declaration of exceptional circumstances (as referred to in paragraph 8(c) of the Rural Adjustment Act 1992) was not in force in relation to that primary production business when the deposit was made.
2 Application
The amendment made by this Schedule applies to assessments for the 2002-03 year of income and later years of income.
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