TAX LAWS AMENDMENT (2009 MEASURES NO. 1) BILL 2009

i Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009

Contents

Short title ............................................................................................ 1

Commencement .................................................................................. 1

Schedule(s) ......................................................................................... 2

Schedule 1--PAYG instalment reduction for small businesses

etc.

Part 1--Main amendments

Taxation Administration Act 1953

Part 2--Sunsetting on 1 July 2013

Taxation Administration Act 1953

Part 3--Application

Schedule 2--Unclaimed superannuation money

Part 1--Amendment of the Superannuation (Unclaimed

Money and Lost Members) Act 1999

Part 2--Other amendments

Financial Transaction Reports Act 1988

Income Tax Assessment Act 1997

Small Superannuation Accounts Act 1995

Superannuation (Government Co-contribution for Low Income

Earners) Act 2003

Superannuation Guarantee (Administration) Act 1992

Taxation Administration Act 1953

Part 3--Application, transitional and saving provisions

Schedule 3--Reforms to income tests

Part 1--Key concepts

Income Tax Assessment Act 1936

Income Tax Assessment Act 1997

Taxation Administration Act 1953

Part 2--Amendment of payment summary provisions

Taxation Administration Act 1953

Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 ii

Part 3--Amendment of income tests

A New Tax System (Family Assistance) Act 1999

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

1999

Child Support (Assessment) Act 1989

Higher Education Support Act 2003

Income Tax Assessment Act 1936

Income Tax Assessment Act 1997

Medicare Levy Act 1986

Social Security Act 1991

Student Assistance Act 1973

Superannuation (Government Co-contribution for Low Income

Earners) Act 2003

Veterans' Entitlements Act 1986

Part 4--Exclusion of certain employer superannuation

contributions from test for exceptional circumstances

relief payment

Farm Household Support Act 1992

Part 5--Dependency rebates

Income Tax Assessment Act 1936

Social Security Act 1991

Part 6--Application

Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 1

A Bill for an Act to amend the law relating to

taxation, and for other purposes

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Tax Laws Amendment (2009

Measures No. 1) Act 2009.

2 Commence ment

(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 (2009 Measures No. 1) Bill 2009 No. , 2009

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. Schedule 1,

Part 1

The day on which this Act receives the

Royal Assent.

3. Schedule 1,

Part 2

1 Ju ly 2013.

1 Ju ly 2013

4. Schedule 1,

Part 3

The day on which this Act receives the

Royal Assent.

5. Schedules 2

and 3

The day after 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.

PA YG instalment reduction for s mall businesses etc. Schedule 1

Main amendments Part 1

Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 3

Schedule 1

PAYG instalment reduction for

small businesses etc.

Part 1

Main amendments

Taxation Administration Act 1953

1 Before subsection 45-400(1) in Schedule 1

Insert:

Scope

2 Before subsection 45-400(2) in Schedule 1

Insert:

Working out amount of instalment

3 At the end of section 45-400 in Schedule 1

Add:

Amount reduced in circumstances specified by regulations

(3) In the circumstances (if any) specified by the regulations, the

amount worked out in accordance with the table in subsection (2)

is reduced by the amount worked out under the regulations.

(4) Without limiting subsection (3), the regulations may specify

circumstances by:

(a) specifying the particular

instalment quarter to which the

reduction applies; or

(b) specifying the kind of payers to whom the reduction applies.

(5) In working out, under subsection (2), the amount of your

instalment for an

instalment quarter in an income year, assume

that there had not been any reductions under subsection (3) for

earlier instalment quarters in that year.

Schedule 1 PA YG instalment reduction for s mall businesses etc.

Part 1 Main amendments

4 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009

December 2008 reduction for small business entities

(6) If 31 December 2008 occurs in an

instalment quarter in an income

year, the amount worked out in accordance with the table in

subsection (2) for the instalment quarter is reduced by 20% if you

are:

(a) a

small business entity for the 2007-08 or 2008-09 income

year; or

(b) a partner of a partnership that is a small business entity for

the 2007-08 or 2008-09 income year; or

2007-08 or 2008-09 income year.

(7) In working out, under subsection (2), the amount of your

instalment for a later

instalment quarter in the income year,

assume that the reduction under subsection (6) had not happened.

Unclaimed superannuation money Schedule 2

Amend ment of the Superannuation (Unclaimed Money and Lost Members) Act 1999

Part 1

Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 7

Schedule 2

Unclaimed superannuation

money

Part 1

Amendment of the Superannuation

(Unclaimed Money and Lost Members) Act

1999

1 Section 7 (simplified outline)

Omit At the end of each half-year, substitute At the times

determined by the Commissioner.

2 Section 7 (simplified outline)

Omit On request by a person entitled to receive that money, the

Commissioner must pay it to that person., substitute If the

Commissioner is satisfied he or she has received such a payment in

respect of a person, the Commissioner must pay the amount he or she

has received to the person, to a fund identified by the person or, if the

person has died, to the person's death beneficiaries or legal personal

representative..

3 Section 7 (simplified outline)

Omit:

Superannuation of persons who used to hold temporary visas

The Commissioner of Taxation must give the superannuation

provider for a fund a notice identifying a member of the fund if

satisfied that the member used to be the holder of a temporary visa,

has left Australia and is not an Australian or New Zealand citizen

or the holder of a visa.

substitute:

Superannuation of former temporary residents

The Commissioner of Taxation must give the superannuation

provider for a fund a notice identifying a member of the fund if

satisfied that the member is a former temporary resident.

Schedule 2 Unclaimed superannuation money

Part 1 A mend ment of the Superannuation (Unclaimed Money and Lost Members) Act

1999

8 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009

4 Section 7 (simplified outline)

After if the member has died, to the member's, insert death

beneficiaries or.

5 Section 7 (simplified outline)

After:

If the Commissioner is satisfied he or she has received a payment

under this Act for such a member, the Commissioner must pay the

amount he or she has received (and interest, in some cases) to the

member, to a fund identified by the member or, if the member has

died, to the member's legal personal representative.

insert:

The Commissioner of Taxation may publish, or make available,

details relating to amounts paid to the Commissioner in respect of

such members.

6 Section 8

Insert:

former temporary resident has the meaning given by

section 20AA.

7 Section 8 (definition of scheduled statement day)

Repeal the definition, substitute:

scheduled statement day has the meaning given by:

(a) in relation to a statement required by Part 3--section 15A;

and

(b) in relation to a statement required by Part 3A--section 20B.

8 Section 8

Insert:

unclaimed money day has the meaning given by section 15A.

9 Before section 11

Insert:

Unclaimed superannuation money Schedule 2

Amend ment of the Superannuation (Unclaimed Money and Lost Members) Act 1999

Part 1

Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 9

Division 1--Preliminary

10 Subsection 13(1)

Omit in relation to a fund, substitute for a fund.

11 After section 15

Insert:

15A Setting dates for statements and payme nts

The Commissioner may, by legislative instrument, specify:

(a) days as being unclaimed money days for the purposes of this

Part; and

(b) for each unclaimed money day--a day (the scheduled

statement day) by the end of which a statement required by

this Part, in relation to the unclaimed money day, is to be

given to the Commissioner.

Division 2--Statement of unclaimed money

12 Subsections 16(1) to (6)

Repeal the subsections, substitute:

Superannuation provider must give statement to Commissioner

(1) A superannuation provider must, for each unclaimed money day,

give the Commissioner a statement, in the approved form, of

information relevant to either or both of the following:

(a) all unclaimed money as at the end of the day;

(b) the administration of any of the following in connection with

the unclaimed money:

(i) this Part;

(ii) the Superannuation (Departing Australia

Superannuation Payments Tax) Act 2007;

(iii) the Income Tax Assessment Act 1997, Part 3AA of this

Act, and Chapters 2 and 4 in Schedule 1 to the Taxation

Administration Act 1953, so far as they relate to this

Part or the Superannuation (Departing Australia

Superannuation Payments Tax) Act 2007.

Schedule 2 Unclaimed superannuation money

Part 1 A mend ment of the Superannuation (Unclaimed Money and Lost Members) Act

1999

10 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009

Note 1:

Subsection (1) does not apply if the superannuation provider gives a

statement, and makes a payment, to a State or Territory authority as

provided for in section 18 (State or Territory public sector

superannuation schemes).

Note 2:

The Taxation Administration Act 1953 provides for offences and

administrative penalties if the statement required under subsection (1)

includes false or misleading information: see sections 8K, 8M, 8N and

8R of that Act and Division 284 in Schedule 1 to that Act.

Note 3:

The approved form may also require the statement to include certain

tax file numbers: see subsection 25(1) of this Act.

(1A) If, at the end of the unclaimed money day, there is no unclaimed

money, the statement must say so.

Note:

If the fund is a regulated superannuation fund that has fewer than 5

members, see subsection (2A).

(2) The statement must also contain information, required by the form,

relevant to any of the unclaimed money that, between the

unclaimed money day and the day on which the statement is given

to the Commissioner:

(a) the superannuation provider pays to a person who is entitled

to it; or

(b) otherwise ceases to be unclaimed money (other than because

the provider pays the money to the Commissioner under

subsection 17(1)).

(2A) Subsection (1) does not apply if, at the end of the unclaimed

money day:

(a) the fund is a regulated superannuation fund that has fewer

than 5 members; and

(b) there is no unclaimed money.

When statement must be given

(3) The superannuation provider must give the Commissioner the

statement by the end of the scheduled statement day for the

unclaimed money day.

Note 1:

The Commissioner may defer the time for giving the statement: see

section 388-55 in Schedule 1 to the Taxation Administration Act 1953.

Note 2:

The Taxation Administration Act 1953 provides for offences and

administrative penalties if the statement is not given when it must be:

see sections 8C and 8E of that Act and Division 286 in Schedule 1 to

that Act.

Unclaimed superannuation money Schedule 2

Amend ment of the Superannuation (Unclaimed Money and Lost Members) Act 1999

Part 1

Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 11

13 Subsection 16(7)

Omit Subsection (1), substitute This section.

Note:

The following heading to subsection 16(7) is inserted Certain former temporary

residents.

14 Subsection 16(7) (note)

Omit holders of temporary visas, substitute temporary residents.

15 After section 16

Insert:

16A Error or omission in statement

Scope

(1) This section applies if:

(a) a superannuation provider gives the Commiss ioner a

statement under section 16; and

(b) the superannuation provider becomes aware of a material

error, or material omission, in any information in the

statement.

Superannuation provider must give information

(2) The superannuation provider must, in the approved form, give the

Commissioner the corrected or omitted information.

(3) Information required by subsection (2) must be given no later than

30 days after the superannuation provider becomes aware of the

error or omission.

Note 1:

The Commissioner may defer the time for giving the information: see

section 388-55 in Schedule 1 to the Taxation Administration Act 1953.

Note 2:

The Taxation Administration Act 1953 provides for offences and

administrative penalties if the information is not given when it must

be: see sections 8C and 8E of that Act and Division 286 in Schedule 1

to that Act.

Division 3--Payment of unclaimed money

16 Subsections 17(1) and (2)

Repeal the subsections, substitute:

Schedule 2 Unclaimed superannuation money

Part 1 A mend ment of the Superannuation (Unclaimed Money and Lost Members) Act

1999

12 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009

Provider must pay Commissioner

(1) A superannuation provider must pay the Commissioner (for the

Commonwealth) the amount, in relation to each unclaimed money

day, worked out under subsection (1A). The amount is due and

payable at the end of the scheduled statement day for the

unclaimed money day.

Note 1:

Subsection (1) does not apply if the superannuation provider gives a

statement, and makes a payment, to a State or Territory authority as

provided for in section 18 (State or Territory public sector

superannuation schemes).

Note 2:

The amount the superannuation provider must pay the Commissioner

is a tax-related liability for the purposes of the Taxation

Administration Act 1953. Division 255 in Schedule 1 to that Act deals

with payment and recovery of tax-related liabilities. Division 284 in

that Schedule provides for administrative penalties connected with

such liabilities.

Note 3:

The Commissioner may defer the time at which the amount is due and

payable: see section 255-10 in Schedule 1 to the Taxation

Administration Act 1953.

Note 4:

Section 18A provides for refunds of overpayments by the

superannuation provider to the Commissioner.

(1A) Work out the amount using the following formula:

All unclaimed money as at the

Former unclaimed money

end of the unclaimed money day

where:

former unclaimed money means any of the unclaimed money that,

between the unclaimed money day and the day on which the

superannuation provider gives the statement in relation to the

unclaimed money day to the Commissioner under subsection

16(1):

(a) the superannuation provider pays to a person who is entitled

to it; or

(b) otherwise ceases to be unclaimed money (other than because

the provider pays the money to the Commissioner under

subsection (1)).

(1B) Subsection (1) does not require the superannuation provider to pay

the Commissioner an amount on account of unclaimed money

described in subsection 12(1) payable to a person identified in a

notice the Commissioner has given the provider under section 20C.

Unclaimed superannuation money Schedule 2

Amend ment of the Superannuation (Unclaimed Money and Lost Members) Act 1999

Part 1

Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 13

Note:

Such money is payable to the Commissioner under section 20F.

Payment by Commissioner in respect of person for whom an

amount has been paid to Commissioner

(1C) Subsections (2) and (2AA) apply in relation to a person if:

(a) a superannuation provider paid unclaimed money to the

Commissioner under subsection (1) in respect of the person;

and

(b) the Commissioner is satisfied, on application in the approved

form or on the Commissioner's own initiative, that it is

possible for the Commissioner to pay the unclaimed money

in accordance with subsection (2).

(2) The Commissioner must pay the unclaimed money:

(a) to a single fund if:

(i) the person has not died; and

(ii) the person directs the Commissioner to pay to the fund;

and

(iii) the fund is a complying superannuation plan (within the

meaning of the Income Tax Assessment Act 1997); or

(b) in accordance with subsection (2AA) if:

(i) the person has died; and

(ii) the Commissioner is satisfied that, if the superannuation

provider had not paid the unclaimed money to the

Commissioner, the provider would have been required

to pay an amount or amounts (death benefits) to one or

more other persons (death beneficiaries) because of the

deceased person's death; or

died but subparagraph (b)(ii) does not apply; or

(d) in any other case--to the person.

Note:

Money for payments under subsection (2) is appropriated by

section 16 of the Taxation Administration Act 1953.

(2AA) In a case covered by paragraph (2)(b), the Commissioner must pay

the unclaimed money under subsection (2) by paying to each death

beneficiary the amount worked out using the following formula:

Death benefit for the death beneficiary

Amount of unclaimed money

payable under subsection (2)

Total death benefits

Schedule 2 Unclaimed superannuation money

Part 1 A mend ment of the Superannuation (Unclaimed Money and Lost Members) Act

1999

14 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009

Note:

If there is only one death beneficiary, the whole of the unclaimed

money is payable to that beneficiary.

Note:

The heading to section 17 is altered by omitting to Commissioner.

17 Subsection 17(2A)

Omit Subsection (2) does, substitute Subsections (1C) to (2AA) do.

18 Subsections 17(3), (5) and (6)

Repeal the subsections.

19 After section 17

Insert:

17A Payme nts of unclaime d money--late payments

General interest charge on late payment

(1) If any of the amount a superannuation provider must pay under

subsection 17(1) remains unpaid after it is due and payable, the

superannuation provider is liable to pay general interest charge on

the unpaid amount for each day in the period that:

(a) starts at the time it is due and payable; and

(b) ends at the end of the last day on which either of the

following remains unpaid:

(i) the amount unpaid when it is due and payable;

(ii) general interest charge on any of the amount.

Offence of failing to make payment to Commissioner

(2) A person commits an offence if:

(a) the person is subject to a requirement under subsection 17(1);

and

(b) the person engages in conduct; and

Penalty for an offence against subsection (2): 100 penalty units.

Division 4--Various rules for special cases

20 Subsections 18(2) and (3)

Unclaimed superannuation money Schedule 2

Amend ment of the Superannuation (Unclaimed Money and Lost Members) Act 1999

Part 1

Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 15

Repeal the subsections, substitute:

(2) The superannuation provider does not have to comply with

subsection 16(1) or 17(1) in relation to an unclaimed money day if

the provider, in accordance with that law of a State or Territory:

(a) gives to a State or Territory authority a statement that

complies with items 1 and 2 of the table in subsection (4) in

relation to the first half year that ends on or after the

unclaimed money day; and

(b) pays the amount worked out under item 3 of that table to the

State or Territory authority.

21 Subsection 18(4) (at the end of table item 3, column

headed "Effect of provision")

Add , as in force just before the commencement of Schedule 5 to the

Tax Laws Amendment (2009 Measures No. 1) Act 2009.

22 Subsection 18(5)

Omit provisions corresponding to the provisions, and with the effects,

set out in the following table:, substitute:

provisions:

(a) corresponding to the provisions of this Act, as in force just

before the commencement of Schedule 5 to the Tax Laws

Amendment (2009 Measures No. 1) Act 2009, set out in the

following table; and

(b) with the effects set out in the table:

23 After section 18

Insert:

18A Refund of overpayment made by superannuation provider

(1) This section applies if:

(a) a superannuation provider for a fund (the first fund) has

made a payment under subsection 17(1) in respect of a

person; and

(b) the Commissioner is satisfied that the amount paid exceeded

the amount (if any) that was payable under that subsection in

respect of the person.

Schedule 2 Unclaimed superannuation money

Part 1 A mend ment of the Superannuation (Unclaimed Money and Lost Members) Act

1999

16 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009

(2) The Commissioner must pay the excess:

(a) to the superannuation provider; or

(b) to a superannuation provider for another fund if the

Commissioner is satisfied that:

(i) the first fund no longer exists; and

(ii) the other fund provides rights relating to the person

equivalent to those provided by the first fund.

Note:

Money for payments under subsection (2) is appropriated by

section 16 of the Taxation Administration Act 1953.

18B Commissioner may recover overpayme nt

(1) This section applies if:

(a) the Commissioner makes a payment in respect of a person

under, or purportedly under, this Part; and

(b) the amount paid exceeds the amount (if any) properly

payable under this Part in respect of the person.

(2) The Commissioner may recover all or part of the excess from a

person (the debtor) described in subsection (3) as a debt due by the

debtor to the Commonwealth if the conditions specified in

subsection (4) are met.

(3) The persons from whom the Commissioner may recover are as

follows:

(a) the person to whom the payment was made (whether the

payment was made to the person in his or her own right or as

the legal personal representative of someone else who had

died);

(b) the superannuation provider for the fund to which the

payment was made;

that payment, was transferred to another fund--the

superannuation provider for that other fund.

(4) The conditions for recovery are that:

(a) the Commissioner gave the debtor written notice, as

prescribed by the regulations, of the proposed recovery and

the amount to be recovered; and

(b) at least 28 days have passed since the notice was given; and

Unclaimed superannuation money Schedule 2

Amend ment of the Superannuation (Unclaimed Money and Lost Members) Act 1999

Part 1

Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 17

in the notice.

(5) Despite subsections (2) and (3), if the Commissioner gives a notice

described in paragraph (4)(a) to a superannuation provider for a

fund, and the fund does not hold an amount attributable to the

payment, the Commissioner cannot recover from the

superannuation provider.

(6) The Commissioner may revoke a notice described in

paragraph (4)(a).

(7) The total of the amounts recovered from different debtors in

relation to the same excess must not be more than the excess.

(8) A notice described in paragraph (4)(a) is not a legislative

instrument.

18C Superannuation provider to return payme nt from

Commissioner that cannot be credited

Scope

(1) This section applies if:

(a) a payment (the Commissioner's payment) is made to a fund

under subsection 17(2) in accordance with a person's

direction; and

(b) the superannuation provider for the fund has not credited the

payment to an account for the benefit of the person by the

time (the repayment time) that is the end of the 28th day after

the day on which the Commissioner's payment was made.

Repayment

(2) The superannuation provider is liable to repay the Commissioner's

payment to the Commonwealth. The repayment is due and payable

at the repayment time.

Note:

The amount the superannuation provider is liable to repay is a

tax-related liability for the purposes of the Taxation Administration

Act 1953. Division 255 in Schedule 1 to that Act deals with payment

and recovery of tax-related liabilities.

Schedule 2 Unclaimed superannuation money

Part 1 A mend ment of the Superannuation (Unclaimed Money and Lost Members) Act

1999

18 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009

(3) The superannuation provider must give the Commissioner, in the

approved form, information relating to the Commissioner's

payment when repaying it.

Note:

The Taxation Administration Act 1953 provides for offences and

administrative penalties if the form is not given when it must be or

includes false or misleading information: see sections 8C, 8K and 8N

of that Act and Divisions 284 and 286 in Schedule 1 to that Act.

General interest charge

(4) If any of the amount the superannuation provider is liable to repay

under subsection (2) remains unpaid by the superannuation

provider after the repayment time, the superannuation provider is

liable to pay general interest charge on the unpaid amount for each

day in the period that:

(a) starts at the repayment time; and

(b) ends at the end of the last day on which either of the

following remains unpaid:

(i) the amount unpaid at the repayment time;

(ii) general interest charge on any of the amount.

Part 3AA--Register of unclaimed money

24 Paragraph 19(1)(a)

Omit this Part, substitute Part 3.

25 Paragraph 19(1)(b)

Omit member, substitute person.

26 At the end of subsection 19(1)

Add:

; and (c) amounts paid to the Commissioner under section 20F

(unclaimed superannuation of former temporary residents);

and

(d) each person in respect of whom there is an amount referred to

in paragraph (c) of this subsection.

27 Section 20A (simplified outline)

Omit:

Unclaimed superannuation money Schedule 2

Amend ment of the Superannuation (Unclaimed Money and Lost Members) Act 1999

Part 1

Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 19

The Commissioner must give the superannuation provider for a

fund a notice if the Commissioner is satisfied that:

(a) a person who used to be the holder of a temporary

visa has a superannuation interest in the fund; and

(b) at least 6 months have passed since the person

ceased to hold the visa and left Australia; and

substitute:

The Commissioner must give the superannuation provider for a

fund a notice if the Commissioner is satisfied that a former

temporary resident has a superannuation interest in the fund.

28 After section 20A

Insert:

20AA Meaning of former temporary resident

(1) In this Act:

former temporary resident: a person is a former temporary

resident if:

(a) before, on or after the commencement of this section, the

person:

(i) was, under the Migration Act 1958, the holder of a

temporary visa, except a visa prescribed under

subsection (2) of this section, that has ceased to be in

effect; and

(ii) left Australia after starting to be the holder of the visa

(whether the visa ceased to be in effect before, when or

after the person left); and

(b) at least 6 months have passed since the later of the following

events (or either of them if they occurred at the same time):

(i) the visa ceased to be in effect;

(ii) the person left Australia; and

Schedule 2 Unclaimed superannuation money

Part 1 A mend ment of the Superannuation (Unclaimed Money and Lost Members) Act

1999

20 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009

(i) is not, under that Act, the holder of a temporary visa or

permanent visa; and

(ii) is neither an Australian citizen nor a New Zealand

citizen; and

(iii) has not made a valid application for a permanent visa

that has not been finally determined under that Act.

(2) The regulations may prescribe a visa for the purposes of

subparagraph (a)(i) of the definition of former temporary resident

in subsection (1).

Note:

The regulations may prescribe a visa by reference to a class of visas:

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

29 Paragraphs 20C(1)(b) to (d)

Repeal the paragraphs, substitute:

(b) the person is a former temporary resident.

30 Subparagraph 20E(1)(b)(iii)

After the Income Tax Assessment Act 1997,, insert Part 3AA of this

Act,.

31 Paragraph 20L(1)(a)

Omit section 20H, substitute this Part.

32 Paragraph 20L(1)(b)

Omit that section, substitute this Part.

33 Subsection 23(1) (note)

After Note, insert 1.

34 At the end of subsection 23(1)

Add:

Note 2:

The Taxation Administration Act 1953 provides for offences if the

statement includes false or misleading information: see sections 8K,

8M, 8N and 8R of that Act.

Note 3:

The Taxation Administration Act 1953 provides for offences and

administrative penalties if the statement is not given when it must be:

see sections 8C and 8E of that Act and Division 286 in Schedule 1 to

that Act.

35 Subsection 23(5)

Unclaimed superannuation money Schedule 2

Amend ment of the Superannuation (Unclaimed Money and Lost Members) Act 1999

Part 1

Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 21

Repeal the subsection.

36 Before paragraph 25(1)(a)

Insert:

(aa) the superannuation provider; and

37 Subsection 26(2)

Omit approved form, substitute form approved by a State or

Territory authority.

38 Section 32 (note 1)

Omit , 37.

39 Section 37

Repeal the section.

40 At the end of subsection 46(4)

Add:

Note 3:

See also section 288-35 in Schedule 1 to the Taxation Administration

Act 1953.

41 At the end of subsection 48(5)

Add:

Note 4:

See also sections 8L, 8M, 8Q, 8R, 8T and 8V of the Taxation

Administration Act 1953 and section 288-25 in Schedule 1 to that Act.

Schedule 2 Unclaimed superannuation money

Part 2 Other amendments

22 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009

Part 2

Other amendments

Financial Transaction Reports Act 1988

42 Paragraph 18(4B)(ca)

Omit section 17 or 18, substitute Part 3 or 3A.

Income Tax Assessment Act 1997

43 At the end of Subdivision 301-C

Add:

Miscellaneous

301-125 Unclaimed money payme nts by the Commissioner

For the purposes of this Subdivision, treat a

superannuation lump

sum paid by the Commissioner under subsection 17(2) or

section 20H of the Superannuation (Unclaimed Money and Lost

Members) Act 1999 as if it were paid from a

superannuation plan.

44 Paragraph 306-15(1)(d)

Omit for the

superannuation plan, substitute , for the

superannuation plan from which the benefit is paid,.

45 At the end of subsection 306-15(1)

Add:

Note:

To work out your untaxed plan cap amount in relation to an unclaimed

money payment from the Commissioner, see subsection 307-350(2B).

46 Subsection 307-5(1) (table item 5, column 2)

Omit section 17 or 18, substitute subsection 17(1) or (2),

section 18.

47 Subsection 307-5(1) (table item 5, column 3)

Omit section 17, 18, substitute subsection 17(1) or (2) or

section 18.

Unclaimed superannuation money Schedule 2

Other amend ments Part 2

Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 23

48 Paragraph 307-120(2)(e)

After payment under, insert subsection 17(2) or.

49 Section 307-142

Repeal the section, substitute:

307-142 Components of certain unclaimed money payme nts

Preliminary

(1) This section explains how to work out the

tax free component, and

the

taxable component, of a

superannuation benefit that is a

payment by the Commissioner under subsection 17(2) or

section 20H of the Superannuation (Unclaimed Money and Lost

Members) Act 1999 in respect of a person.

Tax free component

(2) Work out the

tax free component as follows:

Method statement

Step 1. Work out the amount (the unclaimed amount) (or

amounts), set out in column 1 of the table in

subsection (3), to which the

superannuation benefit is

attributable.

Note:

A payment made under subsection 17(2) of the

Superannuation (Unclaimed Money and Lost Members)

Act 1999 is attributable to a single unclaimed amount set

out in item 1 or 2 of the table.

A payment under section 20H of that Act may be

attributable to more than one unclaimed amount.

Step 2. Assume that the unclaimed amount (or each unclaimed

amount), instead of being paid to the Commissioner, had

been paid to the person as the payment (the claimed

equivalent) set out in column 2 of the table.

Step 3. The

tax free component of the

superannuation benefit

consists of so much of the superannuation benefit as is

attributable to the amount set out in column 3 of the table

Schedule 2 Unclaimed superannuation money

Part 2 Other amendments

24 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009

for the claimed equivalent (or as is attributable to the

amounts set out in that column for the claimed

equivalents).

(3) This is the table mentioned in subsection (2):

Tax free component

Item

Column 1

Unclaimed amount

Column 2

Claimed

equivalent

Column 3

Tax free

component of

claimed equivalent

an amount paid, on or after

1 Ju ly 2007, to the

Co mmissioner under subsection

17(1) of the Superannuation

(Unclaimed Money and Lost

Members) Act 1999 in respect

of the person

superannuation

benefit paid fro m a

superannuation

plan

the

tax free

component of that

superannuation

benefit

an amount paid, before 1 July

2007, to the Co mmissioner

under subsection 17(1) of the

Superannuation (Unclaimed

Money and Lost Members) Act

1999 in respect of the person

an elig ible

termination

payment (within the

mean ing of

subsection 27A(1)

of the Income Tax

Assessment Act

1936, as in force

just before 1 Ju ly

2007)

the total of the

components, of that

elig ible termination

payment, referred to

in subsection

307-225(2) of this

Act

an amount paid to the

Co mmissioner under subsection

20F(1) of the Superannuation

(Unclaimed Money and Lost

Members) Act 1999 in respect

of the person (other than an

amount referred to in

section 65AA of the

Superannuation Guarantee

(Administration) Act 1992)

superannuation

benefit paid fro m a

superannuation

plan

the

tax free

component of that

superannuation

benefit

Note 1:

Section 65AA of the Superannuation Guarantee (Administration) Act

1992 requires certain shortfall components to be treated as amounts

paid to the Commissioner under subsection 20F(1) of the

Superannuation (Unclaimed Money and Lost Members) Act 1999.

Unclaimed superannuation money Schedule 2

Other amend ments Part 2

Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 25

The effect of excluding such shortfall components from item 3 of the

table in this subsection is that the taxable component includes so much

of the superannuation benefit as is attributable to such a shortfall

component.

Note 2:

The table in this subsection does not cover interest paid by the

Commissioner under subsection 20H(2A) of the Superannuation

(Unclaimed Money and Lost Members) Act 1999.

The effect of this is that the taxable component includes so much of

the superannuation benefit as is attributable to such interest.

Taxable component

(4) The

taxable component is so much (if any) of the

superannuation

benefit as is not the

tax free component.

50 At the end of subsection 307-145(1)

Add:

Note:

This section does not apply to an unclaimed money payment.

51 Section 307-300

Repeal the section, substitute:

307-300 Certain unclaimed money payme nts

Preliminary

(1) This section explains how to work out the

element taxed in the

fund, and the

element untaxed in the fund, of the

taxable

component of a

superannuation benefit that is a payment by the

Commissioner under subsection 17(2) or section 20H of the

Superannuation (Unclaimed Money and Lost Members) Act 1999.

Element taxed in the fund

(2) Work out the element taxed in the fund as follows:

Method statement

Step 1. Work out the amount (the unclaimed amount) (or

amounts), set out in column 1 of the table in

subsection (3), to which the

taxable component is

attributable.

Schedule 2 Unclaimed superannuation money

Part 2 Other amendments

26 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009

Note:

A payment made under subsection 17(2) of the

Superannuation (Unclaimed Money and Lost Members)

Act 1999 is attributable to a single unclaimed amount set

out in item 1 or 2 of the table.

A payment under section 20H of that Act may be

attributable to more than one unclaimed amount.

Step 2. Assume that the unclaimed amount (or each unclaimed

amount), instead of being paid to the Commissioner, had

been paid to the person as the payment (the claimed

equivalent) set out in column 2 of the table.

Step 3. The element taxed in the fund of the

taxable component

consists of so much of the taxable component as is

attributable to the amount set out in column 3 of the table

for the claimed equivalent (or as is attributable to the

amounts set out in that column for the claimed

equivalents).

(3) This is the table mentioned in subsection (2):

Element taxed in the fund

Item

Column 1

Unclaimed amount

Column 2

Claimed

equivalent

Column 3

Taxed element of

claimed equivalent

an amount paid, on or after

1 Ju ly 2007, to the

Co mmissioner under

subsection 17(1) of the

Superannuation (Unclaimed

Money and Lost Members) Act

1999 in respect of the person

superannuation

benefit paid fro m a

superannuation

plan

the

element taxed in

the fund of the

taxable co mponent

of that

superannuation

benefit

an amount paid, before 1 July

2007, to the Co mmissioner

under subsection 17(1) of the

Superannuation (Unclaimed

Money and Lost Members) Act

1999 in respect of the person

an elig ible

termination

payment (within the

mean ing of

subsection 27A(1)

of the Income Tax

Assessment Act

1936, as in force

just before 1 Ju ly

2007)

the taxed element of

the post-June 83

component of that

elig ible termination

payment under

Subdivision AA of

Div ision 2 of Part III

of the Income Tax

Assessment Act 1936,

as in force just before

Unclaimed superannuation money Schedule 2

Other amend ments Part 2

Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 27

Element taxed in the fund

Item

Column 1

Unclaimed amount

Column 2

Claimed

equivalent

Column 3

Taxed element of

claimed equivalent

1 Ju ly 2007

an amount paid to the

Co mmissioner under

subsection 20F(1) of the

Superannuation (Unclaimed

Money and Lost Members) Act

1999 in respect of the person

(other than an amount referred

to in section 65AA of the

Superannuation Guarantee

(Administration) Act 1992)

superannuation

benefit paid fro m a

superannuation

plan

the

element taxed in

the fund of the

taxable co mponent

of that

superannuation

benefit

Note 1:

Section 65AA of the Superannuation Guarantee (Administration) Act

1992 requires certain shortfall components to be treated as amounts

paid to the Commissioner under subsection 20F(1) of the

Superannuation (Unclaimed Money and Lost Members) Act 1999.

The effect of excluding such shortfall components from item 3 of the

table in this subsection is that the element untaxed in the fund includes

so much of the superannuation benefit as is attributable to such a

shortfall component.

Note 2:

The table in this subsection does not cover interest paid by the

Commissioner under subsection 20H(2A) of the Superannuation

(Unclaimed Money and Lost Members) Act 1999.

The effect of this is that the element untaxed in the fund of the taxable

component includes so much of the superannuation benefit as is

attributable to such interest.

Element untaxed in the fund

(4) The element untaxed in the fund of the

taxable component is so

much (if any) of the taxable component as is not the element taxed

in the fund.

52 After subsection 307-350(2A)

Insert:

(2B) For the purposes of the application of this section in relation to

superannuation lump sums paid by the Commissioner under

subsection 17(2) and section 20H of the Superannuation

Schedule 2 Unclaimed superannuation money

Part 2 Other amendments

28 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009

(Unclaimed Money and Lost Members) Act 1999, treat all such

lump sums as if they were paid from a single

superannuation plan.

Small Superannuation Accounts Act 1995

53 Section 4

Insert:

leave Australia has the same meaning as in the Migration Act

1958.

54 Section 14 (simplified outline)

Omit:

Permanent departure from Australia

�

The balance of the amount standing to the credit of an

individual's account may be debited from the Special Account

if:

(a) the individual was the holder of an eligible

temporary residents visa that has expired or been

cancelled; and

(b) the individual has permanently departed from

Australia.

substitute:

Former temporary resident

�

The balance of the amount standing to the credit of an

individual's account may be debited from the Special Account

if the individual is a former temporary resident.

55 Section 62 (simplified outline)

Omit:

�

The balance of an individual's account may be withdrawn if:

Unclaimed superannuation money Schedule 2

Other amend ments Part 2

Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 29

(a) the individual was the holder of an eligible

temporary residents visa that has expired or been

cancelled; and

(b) the individual has permanently departed from

Australia.

substitute:

�

The balance of an individual's account may be withdrawn if

the individual is a former temporary resident.

56 Paragraph 67A(1)(b)

Repeal the paragraph, substitute:

(b) the individual satisfies the Commissioner of Taxation that

before, on or after the commencement of this section, the

individual:

(i) was, under the Migration Act 1958, the holder of a

temporary visa that has ceased to be in effect; and

(ii) left Australia after starting to be the holder of the visa

(whether the visa ceased to be in effect before, when or

after the person left); and

individual:

(i) is not, under the Migration Act 1958, the holder of a

permanent visa; and

(ii) is neither an Australian citizen nor a New Zealand

citizen.

Note:

The heading to section 67A is altered by omitting permanent departure from

Australia and substituting former temporary resident.

57 Subsection 67A(6)

Repeal the subsection.

Superannuation (Government Co-contribution for Low

Income Earners) Act 2003

58 Paragraph 6(1)(f)

Schedule 2 Unclaimed superannuation money

Part 2 Other amendments

30 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009

Repeal the paragraph, substitute:

(f) the person:

(i) is not the holder of a temporary visa under the

Migration Act 1958 at any time in the income year; or

(ii) at all times when he or she holds such a temporary visa

during the income year, is a New Zealand citizen or the

holder of a visa prescribed for the purposes of

subsection 20AA(2) of the Superannuation (Unclaimed

Money and Lost Members) Act 1999.

59 Section 56 (definition of eligible temporary resident visa)

Repeal the definition.

Superannuation Guarantee (Administration) Act 1992

60 Subsection 65(1)

After section, insert 65AA,.

61 After section 65

Insert:

65AA Shortfall component and forme r te mporary resident

(1) This section applies if the employee is a former temporary resident

(within the meaning of the Superannuation (Unclaimed Money and

Lost Members) Act 1999).

(2) The Commissioner must treat the amount of the shortfall

component as if it had been paid to the Commissioner by a

superannuation provider in respect of the employee under

section 20F of that Act.

62 Section 65A

Omit The Commissioner must, substitute Except in a case covered

by section 65AA, the Commissioner must.

63 Sections 66 and 67

Omit If, substitute Except in a case covered by section 65AA, if.

Taxation Administration Act 1953

Unclaimed superannuation money Schedule 2

Other amend ments Part 2

Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 31

64 Subsection 8AAB(5) (after table item 13A)

Insert:

13AA

17A

Superannuation (Unclaimed Money and Lost

Members) Act 1999

13A B

18C

Superannuation (Unclaimed Money and Lost

Members) Act 1999

65 Subsection 15-10(2) in Schedule 1

After 12-FA,, insert 12-FAA,.

66 Subsection 250-10(2) in Schedule 1 (after table item 67)

Insert:

67A

payment of unclaimed

money to the

Co mmissioner

Superannuation (Unclaimed

Money and Lost Members) Act

1999

67B

payment fro m

Co mmissioner that

cannot be credited

18C

Superannuation (Unclaimed

Money and Lost Members) Act

1999

Schedule 2 Unclaimed superannuation money

Part 3 Application, transitional and saving provisions

32 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009

Part 3

Application, transitional and saving

provisions

67 Unclaimed money days

(1)

An unclaimed money day, specified by the Commissioner under

paragraph 15A(a) of the Superannuation (Unclaimed Money and Lost

Members) Act 1999, must be a day that occurs on or after 1 July 2009.

(2)

Despite the amendments of sections 16, 17 and 18 of the

Superannuation (Unclaimed Money and Lost Members) Act 1999 made

by this Schedule, those sections, as in force just before the

commencement of this Schedule, continue to apply, from that

commencement, in relation to half-years ending before 1 July 2009.

68 Errors or omissions in statements

Section 16A of the Superannuation (Unclaimed Money and Lost

Members) Act 1999, as inserted by this Schedule, does not apply in

relation to statements given to the Commissioner under section 16 of

that Act as in force just before the commencement of this Schedule.

69 Payments made before commencement

(1)

To avoid doubt, a reference in a law of the Commonwealth to a

payment made under subsection 17(1) or (2) of the Superannuation

(Unclaimed Money and Lost Members) Act 1999 includes a reference to

a payment made under that subsection as in force before the

commencement of this Schedule.

(2)

However, sections 17A, 18A, 18B and 18C of that Act, as inserted by

this Schedule, do not apply in relation to such a payment.

70 Saving

regulations

(1)

If, just before the commencement of this Schedule, regulations made for

the purposes of subparagraph 20C(1)(b)(i) of the Superannuation

(Unclaimed Money and Lost Members) Act 1999 were in force, the

regulations have effect, from that commencement, as if they had been

made for the purposes of subsection 20AA(2) of that Act, as inserted by

this Schedule.

Unclaimed superannuation money Schedule 2

Application, transitional and saving provisions Part 3

Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 33

(2)

If, just before the commencement of this Schedule, regulations made for

the purposes of paragraph 20L(4)(a) of the Superannuation (Unclaimed

Money and Lost Members) Act 1999 were in force, the regulations have

effect, from that commencement, as if they had also been made for the

purposes of paragraph 18B(4)(a) of that Act, as inserted by this

Schedule.

71 Application

the Superannuation (Government

Co-contribution for Low Income Earners) Act 2003

The amendment of section 6 of the Superannuation (Government

Co-contribution for Low Income Earners) Act 2003 made by this

Schedule applies in relation to:

(a) the 2009-10 income year; and

(b) later income years.

Schedule 3 Reforms to income tests

Part 1 Key concepts

34 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009

Schedule 3

Reforms to income tests

Part 1

Key concepts

Income Tax Assessment Act 1936

1 Subsection 6(1)

Insert:

adjusted fringe benefits total of a taxpayer for a year of income is

the amount worked out using the formula:

Taxpayer's reportable

1 � FBT rate

fringe benefits total

where:

FBT rate is the rate of tax set by the Fringe Benefits Tax Act 1986

for the FBT year (as defined in the Fringe Benefits Tax Assessment

Act 1986) beginning on the 1 April just before the start of the year

of income.

2 Subsection 6(1)

Insert:

rebate income of an individual for a year of income is the sum of:

(a) the individual's taxable income for the year of income; and

(b) the individual's reportable superannuation contributions for

the year of income; and

income; and

(d) the individual's adjusted fringe benefits total for the year of

income.

3 Subsection 6(1) (definition of reportable fringe benefits

total)

Repeal the definition, substitute:

reportable fringe benefits total has the same meaning as in the

Fringe Benefits Tax Assessment Act 1986.

Reforms to income tests Schedule 3

Key concepts Part 1

Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 35

4 Subsection 6(1)

Insert:

reportable superannuation contributions has the same meaning as

in the Income Tax Assessment Act 1997.

5 Subsection 6(1)

Insert:

total net investment loss has the same meaning as in the Income

Tax Assessment Act 1997.

Income Tax Assessment Act 1997

6 Subsection 995-1(1)

Insert:

financial investment includes the following:

(a) a

share in a company;

(b) an interest in a managed investment scheme (within the

meaning of the Corporations Act 2001);

forestry interest in a

forestry managed investment

scheme;

(d) a right or option in respect of an investment referred to in

paragraph (a), (b) or (c);

(e) an investment of a like nature to any of those referred to in

paragraphs (a) to (d).

7 Subsection 995-1(1)

Insert:

income for surcharge purposes, for a person and an income year,

means the sum of the following:

(a) the person's taxable income for the income year

(disregarding subsection 271-105(1) of Schedule 2F to the

Income Tax Assessment Act 1936);

(b) the person's

reportable fringe benefits total (if any) for the

income year;

reportable superannuation contributions for the

income year;

Schedule 3 Reforms to income tests

Part 1 Key concepts

36 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009

(d) the person's

total net investment loss for the income year;

less the amount mentioned in subsection 301-20(3) for the person

for the income year if the person is entitled to a tax offset under

subsection 301-20(2) for the income year.

8 Subsection 995-1(1)

Insert:

reportable employer superannuation contribution has the

meaning given by section 16-182 in Schedule 1 to the Taxation

Administration Act 1953.

9 Subsection 995-1(1)

Insert:

reportable superannuation contributions, for an individual and an

income year, means the sum of:

(a) the individual's

reportable employer superannuation

contributions (if any) for the income year; and

(b) the individual's deductions (if any) under Subdivision 290-C

for the income year.

10 Subsection 995-1(1)

Insert:

total net investment loss of an individual for an income year means

the sum of:

(a) the amount (if any) by which the individual's deductions for

the income year that are attributable to

financial investments

exceed the individual's gross income for that year from those

investments; and

(b) the amount (if any) by which the individual's deductions for

the income year that are attributable to rental property exceed

the individual's gross income for that year from rental

property.

Taxation Administration Act 1953

11 At the end of Subdivision 16-C in Schedule 1

Add:

Reforms to income tests Schedule 3

Key concepts Part 1

Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 37

16-182 Definition of reportable employer superannuation contribution

(1) A reportable employer superannuation contribution, for an

individual for an income year, is an amount contributed:

(a) by an employer of the individual, or an

associate of the

employer, for the individual's benefit in respect of the

income year; and

(b) to a

superannuation fund or an

RSA;

to the extent that either or both of the following paragraphs apply:

expected to have or have had, the capacity to influence the

size of the amount;

(d) the individual has or has had, or might reasonably be

expected to have or have had, the capacity to influence the

way the amount is contributed so that his or her assessable

income is reduced.

(2) However, an amount is not a reportable employer superannuation

contribution to the extent that it is included in the individual's

assessable income for the income year.

(3) For the purposes of this section, employer has the expanded

meaning given by section 12 of the Superannuation Guarantee

(Administration) Act 1992 (assuming that subsection 12(11) of that

Act had not been enacted).

(4) For the purposes of this section, disregard whether any

superannuation benefits arising from a contribution are payable to

SIS dependant of the individual if the individual dies before or

after becoming entitled to receive the benefits.

Schedule 3 Reforms to income tests

Part 2 A mend ment of payment summary provisions

38 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009

Part 2

Amendment of payment summary provisions

Taxation Administration Act 1953

12 At the end of subsection 16-153(2) in Schedule 1

Add:

; or (d) the entity made

reportable employer superannuation

contributions in respect of a person's employment.

Note:

The heading to section 16-153 in Schedule 1 is altered by omitting about withholding

payments and reportable fringe benefits.

13 Subparagraph 16-153(3)(b)(i) in Schedule 1

Omit and

reportable fringe-benefit amounts, substitute ,

reportable

fringe-benefit amounts and

reportable employer superannuation

contributions.

14 At the end of subsection 16-155(1) in Schedule 1

Add:

; or (d) the recipient is an individual and

reportable employer

superannuation contributions have been made by the payer,

in respect of the individual's employment, during the year.

15 At the end of subsection 16-155(2) in Schedule 1

Add:

; and (c) if paragraph (1)(d) applies--the total of the

reportable

employer superannuation contributions, except so much of

those contributions as are covered by a previous payment

summary given by the payer to the recipient under

section 16-160.

16 At the end of paragraph 16-160(1)(c) in Schedule 1

Add or.

17 After paragraph 16-160(1)(c) in Schedule 1

Insert:

Reforms to income tests Schedule 3

Amend ment of payment summary provisions Part 2

Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 39

(d)

reportable employer superannuation contributions made by

the payer, in respect of the recipient's employment, during

the financial year;

18 After paragraph 16-170(1)(e) in Schedule 1

Insert:

(f) specifies the

reportable employer superannuation

contributions (if any) that it covers and the income year to

which those contributions relate; and

Schedule 3 Reforms to income tests

Part 3 A mend ment of inco me tests

40 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009

Part 3

Amendment of income tests

A New Tax System (Family Assistance) Act 1999

19 Paragraph 2(1)(d) of Schedule 3

Repeal the paragraph, substitute:

(d) the individual's total net investment loss (within the meaning

of the Income Tax Assessment Act 1997) for that year;

20 After paragraph 2(1)(e) of Schedule 3

Insert:

(f) the individual's reportable superannuation contributions

(within the meaning of the Income Tax Assessment Act 1997)

for that year;

21 Clause 6 of Schedule 3

Repeal the clause.

A New Tax System (Medicare Levy Surcharge--Fringe

Benefits) Act 1999

22 Subsection 3(1)

Insert:

income for surcharge purposes has the same meaning as in the

Income Tax Assessment Act 1997.

23 Subsection 3(1) (definition of reportable fringe benefits

total)

Repeal the definition, substitute:

reportable fringe benefits total has the same meaning as in the

Fringe Benefits Tax Assessment Act 1986.

24 Subsection 3(1) (definition of taxable income)

Repeal the definition.

25 Section 9

Reforms to income tests Schedule 3

Amend ment of inco me tests Part 3

Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 41

Repeal the section.

26 Paragraph 12(1)(a)

Repeal the paragraph, substitute:

(a) the person's income for surcharge purposes for the year of

income exceeds the singles surcharge threshold for the year

of income; and

27 Paragraph 13(1)(a)

Repeal the paragraph, substitute:

(a) the person's income for surcharge purposes for the year of

income exceeds the person's family surcharge threshold for

the year of income; and

28 Paragraphs 15(1)(b) and (c)

Repeal the paragraphs, substitute:

(b) the sum of the person's income for surcharge purposes, and

the person's spouse's income for surcharge purposes, for the

year of income exceeds the person's family surcharge

threshold for the year of income; and

income exceeds $17,309.

29 Paragraph 15(2)(a)

Omit taxable income, substitute income for surcharge purposes.

30 Paragraphs 16(2)(b) and (c)

Repeal the paragraphs, substitute:

(b) the sum of the person's income for surcharge purposes, and

the person's spouse's income for surcharge purposes, for the

year of income exceeds the person's family surcharge

threshold for the year of income; and

income exceeds $17,309.

31 Paragraph 16(3)(b)

Repeal the paragraph, substitute:

Schedule 3 Reforms to income tests

Part 3 A mend ment of inco me tests

42 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009

(b) the person's income for surcharge purposes for the year of

income exceeds the person's family surcharge threshold for

the year of income.

32 Paragraph 16(5)(a)

Omit taxable income, substitute income for surcharge purposes.

Child Support (Assessment) Act 1989

33 Subsection 5(1) (definition of net rental property loss)

Repeal the definition.

34 Paragraph 43(1)(d)

Repeal the paragraph, substitute:

(d) the parent's total net investment loss (within the meaning of

the Income Tax Assessment Act 1997) for that year of

income;

35 At the end of subsection 43(1)

Add:

; (f) the parent's reportable superannuation contributions (within

the meaning of the Income Tax Assessment Act 1997) for that

year of income.

Higher Education Support Act 2003

36 Paragraph 154-5(1)(b)

Repeal the paragraph, substitute:

(b) the person's total net investment loss (within the meaning of

the Income Tax Assessment Act 1997) for the income year;

and

37 Paragraph 154-5(1)(d)

Repeal the paragraph, substitute:

(d) the person's

exempt foreign income for the income year;

and

(e) the person's reportable superannuation contributions (within

the meaning of the Income Tax Assessment Act 1997) for the

income year.

Reforms to income tests Schedule 3

Amend ment of inco me tests Part 3

Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 43

38 Subsections 154-5(2) and (3)

Repeal the subsections.

39 Clause 1 of Schedule 1 (definition of rental property loss)

Repeal the definition.

Income Tax Assessment Act 1936

40 Subsection 160AAAA(3)

Omit taxpayer has a taxable income for the year of income, substitute

taxpayer's rebate income for the year of income is.

41 Subsection 160AAAA(4)

Repeal the subsection, substitute:

(4) If the taxpayer is the spouse of another person, the amount

applicable to the taxpayer under subsection (3) is half of the sum

of:

(a) the taxpayer's rebate income for the year of income; and

(b) the taxpayer's spouse's rebate income for the year of income

(reduced by any amount included in the spouse's assessable

income under section 100); and

taxpayer's spouse is presently entitled and that is assessed

under section 98.

42 Subsection 160AAAB(3)

Omit has a taxable income, substitute has an amount applicable

under subsection (4) or (5).

43 Subsections 160AAAB(4) and (5)

Repeal the subsections, substitute:

(4) If the beneficiary is not the spouse of another person, the amount

applicable to the beneficiary under subsection (3) is the amount

that would be the beneficiary's rebate income for the year of

income if the beneficiary's taxable income for that year were the

beneficiary's share of the net income of the trust estate.

Schedule 3 Reforms to income tests

Part 3 A mend ment of inco me tests

44 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009

(5) If the beneficiary is the spouse of another person, the amount

applicable to the beneficiary under subsection (3) is half the sum

of:

(a) the amount that would be applicable to the beneficiary under

subsection (3) if the beneficiary were not the spouse of

another person; and

(b) the beneficiary's spouse's rebate income for the year of

income (reduced by any amount included in the spouse's

assessable income under section 100); and

beneficiary's spouse is presently entitled and that is assessed

under section 98.

Income Tax Assessment Act 1997

44 After paragraph 61-570(1)(b)

Insert:

reportable employer superannuation

contributions for the year;

45 At the end of paragraph 61-580(1)(d)

Add:

; (v) your

reportable superannuation contributions for the

current year;

(vi) your

total net investment loss for the current year.

46 At the end of subsection 290-160(2)

Add:

; (c) the total of your

reportable employer superannuation

contributions for the income year.

47 Paragraph 290-230(2)(c)

Repeal the paragraph, substitute:

(i) assessable income; and

(ii)

reportable fringe benefits total; and

(iii)

reportable employer superannuation contributions;

for the income year is less than $13,800; and

Reforms to income tests Schedule 3

Amend ment of inco me tests Part 3

Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 45

Medicare Levy Act 1986

48 Subsection 3(1)

Insert:

income for surcharge purposes has the same meaning as in the

Income Tax Assessment Act 1997.

49 Subsection 3(1) (definition of reportable fringe benefits

total)

Repeal the definition.

50 Subsection 3(2)

Repeal the subsection, substitute:

(2) In this Act, a reference to income for surcharge purposes, net

income or taxable income is to be read as a reference to that term

for the year of income.

51 Subsection 8B(2)

Omit total of a person's taxable income and reportable fringe benefits

total (if any), substitute person's income for surcharge purposes.

Note:

The heading to section 8B is altered by omitting Increase in levy and substituting

Levy surcharge.

52 Subsection 8C(3)

Omit If the total of a person's taxable income and reportable fringe

benefits total (if any) exceeds the family surcharge threshold,

substitute If the person's income for surcharge purposes exceeds the

person's family surcharge threshold.

Note:

The heading to section 8C is altered by omitting Increase in levy and substituting

Levy surcharge.

53 Paragraphs 8D(3)(b) and (c)

Repeal the paragraphs, substitute:

(b) the sum of the person's income for surcharge purposes and

the person's spouse's income for surcharge purposes exceeds

the person's family surcharge threshold; and

Schedule 3 Reforms to income tests

Part 3 A mend ment of inco me tests

46 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009

Note:

The heading to section 8D is altered by omitting Increase in levy and substituting

Levy surcharge.

54 Subparagraphs 8D(4)(a)(i) and (ii)

Repeal the subparagraphs, substitute:

(i) the sum of the person's income for surcharge purposes

and the person's spouse's income for surcharge

purposes exceeds the person's family surcharge

threshold;

(ii) the person's income for surcharge purposes exceeds

$17,309; or

55 Paragraph 8D(4)(b)

Repeal the paragraph, substitute:

(b) the person's income for surcharge purposes exceeds the

person's family surcharge threshold, if the person is married

for only some of the year of income.

56 Subsection 8D(5)

Repeal the subsection, substitute:

(5) In this section:

income for surcharge purposes, in relation to the person's spouse,

includes any share in the net income of a trust estate:

(a) to which the spouse is presently entitled as a beneficiary; and

(b) in respect of which the trustee of the trust estate in that

capacity is liable to be assessed under section 98 of the

Assessment Act.

Note:

The heading to section 8E is altered by omitting Increase in levy and substituting

Levy surcharge.

57 Subsection 8F(2)

Omit family surcharge threshold, substitute beneficiary's family

surcharge threshold.

Note:

The heading to section 8F is altered by omitting Increase in levy and substituting

Levy surcharge.

58 Paragraph 8G(2)(b)

Repeal the paragraph, substitute:

Reforms to income tests Schedule 3

Amend ment of inco me tests Part 3

Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 47

(b) the sum of the beneficiary's trust income and the

beneficiary's spouse's income for surcharge purposes

exceeds the beneficiary's family surcharge threshold; and

Note:

The heading to section 8G is altered by omitting Increase in levy and substituting

Levy surcharge.

59 Subparagraph 8G(3)(a)(i)

Repeal the subparagraph, substitute:

(i) the sum of the beneficiary's trust income and the

beneficiary's spouse's income for surcharge purposes

exceeds the beneficiary's family surcharge threshold;

and

60 Paragraph 8G(3)(b)

Omit family surcharge threshold, substitute beneficiary's family

surcharge threshold.

61 Subsection 8G(4)

Repeal the subsection, substitute:

(4) In this section:

income for surcharge purposes, in relation to the beneficiary's

spouse, includes any share in the net income of a trust estate:

(a) to which the spouse is presently entitled as a beneficiary; and

(b) in respect of which the trustee of the trust estate in that

capacity is liable to be assessed under section 98 of the

Assessment Act.

Note:

The heading to section 9 is altered by omitting (other than certain levy increases).

Social Security Act 1991

62 Subsection 10A(2) (definition of net rental property loss)

Repeal the definition.

63 Subsection 10A(15)

Repeal the subsection.

64 Subsection 10B(2) (definition of business)

Repeal the definition, substitute:

Schedule 3 Reforms to income tests

Part 3 A mend ment of inco me tests

48 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009

business includes:

(a) the carrying on of primary production; and

(b) the provision of professional services; and

but does not include employment (whether or not the employment

is remunerated by wages or salary).

65 Subsection 10B(2) (definition of net passive business

loss)

Repeal the definition.

66 Subsection 10B(2) (definition of passive business)

Repeal the definition.

67 Subsection 10B(2)

Insert:

total net investment loss has the same meaning as in the Income

Tax Assessment Act 1997.

68 Paragraph 10B(3)(e)

Omit net passive business loss, substitute total net investment loss.

69 Subsection 19AB(2) (definition of rental property loss)

Repeal the definition.

70 Paragraph 1061ZZFA(1)(b)

Repeal the paragraph, substitute:

(b) the person's total net investment loss (within the meaning of

the Income Tax Assessment Act 1997) for the income year;

and

71 Paragraph 1061ZZFA(1)(d)

Repeal the paragraph, substitute:

(d) the person's exempt foreign income for the income year; and

(e) the person's reportable superannuation contributions (within

the meaning of the Income Tax Assessment Act 1997) for the

income year.

Reforms to income tests Schedule 3

Amend ment of inco me tests Part 3

Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 49

72 Subsections 1061ZZFA(2) and (3)

Repeal the subsections.

73 Paragraph 1067G-F10(d)

Repeal the paragraph, substitute:

(d) the parent's total net investment loss for that year;

(e) the parent's reportable superannuation contributions (within

the meaning of the Income Tax Assessment Act 1997) for that

year.

74 Point 1067G-F10 (note 5)

Repeal the note, substitute:

Note 5:

For total net investment loss, see subsection 10B(2).

75 Subpoint 1067G-F11(4)

Repeal the subpoint.

76 Point 1067G-F19A

Repeal the point.

77 Paragraph 1067G-G9(4)(b)

Repeal the paragraph, substitute:

(b) the reportable superannuation contributions (within the

meaning of the Income Tax Assessment Act 1997) of each of

the following people for the appropriate tax year:

(i) the person;

(ii) each family member of the person.

78 Subpoint 1067G-G13(1) (formula)

Repeal the formula, substitute:

GAM

TNITML

TNIL

79 Subpoint 1067G-G13(2) (definition of NPBL (net passive

business loss))

Repeal the definition.

Schedule 3 Reforms to income tests

Part 3 A mend ment of inco me tests

50 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009

80 Subpoint 1067G-G13(2)

Insert:

TNIL (total net investment loss) means the sum of the total net

investment losses of each of the parents of the claimant/recipient in

the appropriate tax year.

81 Paragraph 1071-3(d)

Repeal the paragraph, substitute:

(d) the person's total net investment loss (within the meaning of

the Income Tax Assessment Act 1997) for that year.

82 Point 1071-3 (note 4)

Repeal the note.

83 Point 1071-8

Repeal the point, substitute:

Total net investment loss

1071-8

For the purposes of this Part, a person's total net investment loss

for a particular tax year is the person's accepted estimate of the

amount of that loss for that year.

Student Assistance Act 1973

84 Subsection 3(1) (definition of rental property loss)

Repeal the definition.

85 Paragraph 12ZL(1)(b)

Repeal the paragraph, substitute:

(b) the person's total net investment loss (within the meaning of

the Income Tax Assessment Act 1997) for the income year;

and

86 Paragraph 12ZL(1)(d)

Repeal the paragraph, substitute:

(d) the person's exempt foreign income for the income year; and

Reforms to income tests Schedule 3

Amend ment of inco me tests Part 3

Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 51

(e) the person's reportable superannuation contributions (within

the meaning of the Income Tax Assessment Act 1997) for the

income year.

87 Subsections 12ZL(2) and (3)

Repeal the subsections.

Superannuation (Government Co-contribution for Low

Income Earners) Act 2003

88 At the end of subsection 8(1)

Add:

; and (c) the total of the person's reportable employer superannuation

contributions (within the meaning of the Income Tax

Assessment Act 1997) for the income year.

Veterans' Entitlements Act 1986

89 Paragraph 118ZZA-3(d)

Repeal the paragraph, substitute:

(d) the person's total net investment loss (within the meaning of

the Income Tax Assessment Act 1997) for that year.

90 Point 118ZZA-3 (note 4)

Repeal the note.

91 Point 118ZZA-7

Repeal the point, substitute:

Total net investment loss

118ZZA-7 For the purposes of this Division, a person's total net investment

loss for a particular tax year is the person's accepted estimate of

the amount of that loss for that year.

Schedule 3 Reforms to income tests

Part 4 Exclusion of certain employer superannuation contributions from test for

exceptional circu mstances relief pay ment

52 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009

Part 4

Exclusion of certain employer

superannuation contributions from test for

exceptional circumstances relief payment

Farm Household Support Act 1992

92 At the end of section 24A

Add:

Certain superannuation contributions disregarded

(9) For the purposes of calculating a rate referred to in subsection (1)

for a person who has not reached pension age, disregard

contributions made by the person's employer to a superannuation

fund or RSA for the person's benefit, other than contributions

made by a company or trust if the person is:

(a) an attributable stakeholder of the company or trust; or

(b) an associate under paragraph 1207C(1)(e), (h), (i) or (j) of the

Social Security Act 1991 of a person who is an attributable

stakeholder of the company or trust.

Note:

Those paragraphs of the Social Security Act 1991 cover a relative, a

business partner, a spouse or child of a business partner and a trustee

of a trust (where the person concerned can benefit from the trust).

(10) In subsection (9):

attributable stakeholder of a company or trust has the meaning

given by section 1207X of the Social Security Act 1991.

pension age has the meaning given by section 23 of the Social

Security Act 1991.

RSA has the meaning given by the Retirement Savings Accounts

Act 1997.

superannuation fund has the meaning given by section 10 of the

Superannuation Industry (Supervision) Act 1993.

93 At the end of section 24AA

Add:

Reforms to income tests Schedule 3

Exclusion of certain employer superannuation contributions from test for exceptional

circu mstances relief pay ment Part 4

Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 53

Certain superannuation contributions disregarded

(11) For the purposes of calculating a rate referred to in subsection (1)

for a person who has not reached pension age (within the meaning

of section 23 of the Social Security Act 1991), disregard

contributions that are disregarded under subsection 24A(9).

Schedule 3 Reforms to income tests

Part 5 Dependency rebates

54 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009

Part 5

Dependency rebates

Income Tax Assessment Act 1936

94 Subsection 159J(1AB)

Repeal the subsection, substitute:

(1AB) A taxpayer is not entitled, in his or her assessment in respect of a

year of income, to a rebate under this section in respect of a

dependant included in class 1, 2, 5 or 6 in the table in

subsection (2) if:

(a) for a dependant included in class 1--the taxpayer's adjusted

taxable income for the year is more than the income limit for

family tax benefit (Part B) for the year; or

(b) for a dependant included in class 2, 5 or 6--subsection (1AC)

applies to the taxpayer for the year.

(1AC) This subsection applies to a taxpayer for a year of income if the

sum of:

(a) the taxpayer's adjusted taxable income for the year; and

(b) if the taxpayer has a spouse during the year--the spouse's

adjusted taxable income for the year; and

amount:

Number of days a spouse

Spouse's adjusted taxable

income for the year

Number of days in the year

is more than the income limit for family tax benefit (Part B) for the

year.

Note:

If the taxpayer has a different spouse during different parts of the year,

the adjusted taxable income of each spouse will be included under

paragraph (c).

95 Subsection 159J(4)

Omit separate net income derived by the dependant in, substitute

dependant's adjusted taxable income for.

96 Subsection 159J(5)

Reforms to income tests Schedule 3

Dependency rebates Part 5

Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009 55

Omit a separate net income in, substitute an adjusted taxable income

for.

97 Subsection 159J(6)

Insert:

adjusted taxable income has the same meaning as in the A New

Tax System (Family Assistance) Act 1999, except that, for the

purposes of this section, clauses 3 and 3A of Schedule 3 to that Act

are taken not to have been enacted.

98 Subsection 159J(6)

Insert:

income limit for family tax benefit (Part B) means the amount

specified in subclause 28B(1) of Schedule 1 to the A New Tax

System (Family Assistance) Act 1999, as indexed under Part 2 of

Schedule 4 to that Act.

99 Subsection 159J(6) (definition of separate net income)

Repeal the definition.

100 Subsection 159L(3B)

Repeal the subsection, substitute:

(3B) A taxpayer is not entitled, in his or her assessment in respect of a

year of income, to a rebate under this section if subsection

159J(1AC) applies to the taxpayer for the year.

Social Security Act 1991

101 Subpoint 1067G-G13(2) (paragraph (b) of the definition of

NITML (notional income tax/medicare levy))

Omit a separate net income within the meaning of section 159J of the

Income Tax Assessment Act 1936 in that year, substitute an adjusted

taxable income within the meaning of the A New Tax System (Family

Assistance) Act 1999 in that year.

Schedule 3 Reforms to income tests

Part 6 Application

56 Tax Laws Amendment (2009 Measures No. 1) Bill 2009 No. , 2009

Part 6

Application

102 Application

(1)

The amendments made by this Schedule apply in relation to income

years starting on or after 1 July 2009.

(2)

However, the amendments do not apply in relation to the following:

(a) a claim for baby bonus (within the meaning of the A New Tax

System (Family Assistance) Act 1999) if an estimate

contained in the claim is for a period beginning before 1 July

2009;

(b) an election to work out a parent's adjusted taxable income

under section 60 of the Child Support (Assessment) Act 1989

if the remaining period (within the meaning of subsection

60(5) of that Act) concerned starts before 1 July 2009;

income under section 64 of the Child Support (Assessment)

Act 1989 in relation to an election covered by paragraph (b)

of this subitem.

Commonwealth of Australia Bills

TAX LAWS AMENDMENT (2009 MEASURES NO. 1) BILL 2009