Commonwealth: Tax and Superannuation Laws Amendment (2013 Measures No. 1) Act 2013 (Cth)

Tax and Superannuation Laws Amendment (2013 Measures No. 1) Act 2013 No. 88, 2013 as amended Compilation start date: 30 September 2014 Includes amendments up to: Act No. 96, 2014 About this compilation This compilation This is a compilation of the Tax and Superannuation Laws Amendment (2013 Measures No. 1) Act 2013 as in force on 30 September 2014. It includes any commenced amendment affecting the legislation to that date. This compilation was prepared on 2 October 2014. The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of each amended provision. Uncommenced amendments The effect of uncommenced amendments is not reflected in the text of the compiled law but the text of the amendments is included in the endnotes. Application, saving and transitional provisions for provisions and amendments If the operation of a provision or amendment is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes. Modifications If a provision of the compiled law is affected by a modification that is in force, details are included in the endnotes. Provisions ceasing to have effect If a provision of the compiled law has expired or otherwise ceased to have effect in accordance with a provision of the law, details are included in the endnotes. Contents 1 Short title 2 Commencement 3 Schedule(s) 4 Amendment of assessments Schedule 1—Interest on unclaimed money Part 1—Superannuation Income Tax Assessment Act 1997 Superannuation (Departing Australia Superannuation Payments Tax) Act 2007 Superannuation (Unclaimed Money and Lost Members) Act 1999 Part 2—Other amendments Income Tax Assessment Act 1997 Schedule 2—Airline transport fringe benefits Fringe Benefits Tax Assessment Act 1986 Schedule 3—Rural water use Income Tax Assessment Act 1997 Schedule 5—Loss carry back Part 1—Main amendments Income Tax Assessment Act 1997 Income Tax (Transitional Provisions) Act 1997 Part 2—Ascertainment of totals of tax offset refunds Division 1—Amendments relating to the 2012‑13 income year Income Tax Assessment Act 1997 Income Tax (Transitional Provisions) Act 1997 Division 2—Amendments applying from the 2013‑14 year of income Income Tax Assessment Act 1936 Income Tax (Transitional Provisions) Act 1997 Taxation Administration Act 1953 Division 3—Taxation Administration Act 1953 Part 3—Anti‑avoidance Income Tax Assessment Act 1936 Schedule 6—Loss carry back consequential amendments Part 1—Concepts and definitions Income Tax Assessment Act 1936 Income Tax Assessment Act 1997 Income Tax (Transitional Provisions) Act 1997 Taxation Administration Act 1953 Part 2—Other amendments Income Tax Assessment Act 1936 Income Tax Assessment Act 1997 Taxation Administration Act 1953 Schedule 7—Miscellaneous amendments Part 1—Resource rent taxation Income Tax Assessment Act 1997 Minerals Resource Rent Tax Act 2012 Minerals Resource Rent Tax (Consequential Amendments and Transitional Provisions) Act 2012 Petroleum Resource Rent Tax Assessment Act 1987 Taxation Administration Act 1953 Taxation (Interest on Overpayments and Early Payments) Act 1983 Part 2—General amendments A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999 Crimes (Taxation Offences) Act 1980 Excise Tariff Amendment (Condensate) Act 2011 Fringe Benefits Tax Assessment Act 1986 Fuel Tax Act 2006 Income Tax Assessment Act 1936 Income Tax Assessment Act 1997 Income Tax Rates Act 1986 New Business Tax System (Former Subsidiary Tax Imposition) Act 1999 New Business Tax System (Venture Capital Deficit Tax) Act 2003 Superannuation Laws Amendment (Capital Gains Tax Relief and Other Efficiency Measures) Act 2012 Taxation Administration Act 1953 Taxation (Interest on Overpayments and Early Payments) Act 1983 Tax Laws Amendment (2011 Measures No. 9) Act 2012 Tax Laws Amendment (Income Tax Rates) Act 2012 Part 3—Asterisking amendments Income Tax Assessment Act 1997 Endnotes Endnote 1—About the endnotes Endnote 2—Abbreviation key Endnote 3—Legislation history Endnote 4—Amendment history Endnote 5—Uncommenced amendments [none] Endnote 6—Modifications [none] Endnote 7—Misdescribed amendments [none] Endnote 8—Miscellaneous [none] An Act to amend the law relating to taxation and superannuation, and for related purposes 1 Short title This Act may be cited as the Tax and Superannuation Laws Amendment (2013 Measures No. 1) Act 2013. 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 4 and anything in this Act not elsewhere covered by this table The day this Act receives the Royal Assent. 28 June 2013 2. Schedule 1, Part 1 The day this Act receives the Royal Assent. 28 June 2013 3. Schedule 1, Part 2 1 July 2013. 1 July 2013 4. Schedule 2 The later of: 28 June 2013 (a) immediately after the start of the day this Act receives the Royal Assent; and (paragraph (b) applies) (b) immediately after the commencement of Schedule 7 to the Tax Laws Amendment (2012 Measures No. 6) Act 2013. However, the provision(s) do not commence at all if the event mentioned in paragraph (b) does not occur. 5. Schedule 3 The day this Act receives the Royal Assent. 28 June 2013 8. Schedule 5, Part 1 The day after this Act receives the Royal Assent. 29 June 2013 9. Schedule 5, Part 2, Division 1 The day after this Act receives the Royal Assent. 29 June 2013 10. Schedule 5, Part 2, Divisions 2 and 3 1 July 2013. 1 July 2013 11. Schedule 5, items 28 to 34 The day after this Act receives the Royal Assent. 29 June 2013 12. Schedule 5, item 35 The later of: 29 June 2013 (a) the start of the day after this Act receives the Royal Assent; and (paragraph (b) applies) (b) immediately after the commencement of item 5 of Schedule 1 to the Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Act 2013. However, the provision(s) do not commence at all if the event mentioned in paragraph (b) does not occur. 13. Schedule 5, items 36 to 38 The day after this Act receives the Royal Assent. 29 June 2013 14. Schedule 6 The day after this Act receives the Royal Assent. 29 June 2013 15. Schedule 7, items 1 to 136 Immediately after the commencement of the Minerals Resource Rent Tax Act 2012. 1 July 2012 16. Schedule 7, item 137 Immediately after the commencement of Part 2 of Schedule 2 to the Petroleum Resource Rent Tax Assessment Amendment Act 2012. 29 September 2012 17. Schedule 7, items 138 to 193 Immediately after the commencement of the Minerals Resource Rent Tax Act 2012. 1 July 2012 18. Schedule 7, item 194 Immediately after the commencement of Schedule 2 to the Clean Energy (Tax Laws Amendments) Act 2011. 1 July 2012 19. Schedule 7, item 195 The day this Act receives the Royal Assent. 28 June 2013 20. Schedule 7, item 196 Immediately after the commencement of the Excise Tariff Amendment (Condensate) Act 2011. 24 November 2011 21. Schedule 7, items 197 to 223 The day this Act receives the Royal Assent. 28 June 2013 22. Schedule 7, item 224 Immediately after the commencement of item 1 of Schedule 2 to the Superannuation Laws Amendment (Capital Gains Tax Relief and Other Efficiency Measures) Act 2012. 31 January 2013 23. Schedule 7, items 225 to 228 The day this Act receives the Royal Assent. 28 June 2013 24. Schedule 7, item 229 Immediately after the commencement of item 14 of Schedule 1 to the Tax Laws Amendment (2011 Measures No. 9) Act 2012. 22 March 2012 25. Schedule 7, items 230 to 233 Immediately after the commencement of Division 2 of Part 25 of Schedule 6 to the Tax Laws Amendment (2011 Measures No. 9) Act 2012. 21 March 2012 26. Schedule 7, items 234 to 242 The day this Act receives the Royal Assent. 28 June 2013 Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act. (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act. 3 Schedule(s) Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms. 4 Amendment of assessments Section 170 of the Income Tax Assessment Act 1936 does not prevent the amendment of an assessment if: (a) the assessment was made before the commencement of this section; and (b) the amendment is made within 2 years after that commencement; and (c) the amendment is made for the purpose of giving effect to items 204 to 208 of Schedule 7 (Miscellaneous amendments) to this Act. Schedule 1—Interest on unclaimed money Part 1—Superannuation Income Tax Assessment Act 1997 1 Subsection 295‑190(1A) Omit "section 20H", substitute "subsection 20H(2), (2AA) or (2A)". 2 Section 301‑125 Omit "subsection 17(2) or section 20H or 24G", substitute "subsection 17(2), 20H(2), (2AA), (2A) or (3) or 24G(2)". 3 Subsections 301‑170(2), (3) and (4) Omit "section 20H", substitute "subsection 20H(2), (2AA), (2A) or (3)". 4 Subsection 307‑5(1) (table item 5, column 2) Omit "subsection 17(1) or (2) or 20F(1) or section 20H, 24E or 24G", substitute "subsection 17(1), (2) or (2AB), 20F(1) or 20H(2), (2AA) or (2A), section 24E or subsection 24G(2) or (3A)". 5 Subsection 307‑5(1) (table item 5, column 3) Omit "subsection 17(1) or (2) or section 20H or 24G", substitute "subsection 17(1), (2), (2AB) or (2AC), 20H(2), (2AA), (2A) or (3) or 24G(2), (3A) or (3B)". 6 Paragraph 307‑120(2)(e) Omit "subsection 17(2) or section 20H or 24G", substitute "subsection 17(2), (2AB) or (2AC), 20H(2), (2AA), (2A) or (3) or 24G(2), (3A) or (3B)". 7 Subsection 307‑142(1) Omit "subsection 17(2) or section 20H or 24G", substitute "subsection 17(2), (2AB) or (2AC), 20H(2), (2AA), (2A) or (3) or 24G(2), (3A) or (3B)". 8 Subsection 307‑142(2) After "as follows", insert "(unless subsection (3B) or (3C) applies)". 9 Subsection 307‑142(2) (method statement, step 1, note) Omit "section 20H", substitute "subsection 20H(2) or (3)". 10 Subsection 307‑142(2) (method statement, step 1, note) Omit "section 24G", substitute "subsection 24G(2)". 11 After subsection 307‑142(3A) Insert: (3B) The *tax free component is the amount of the benefit, if the *superannuation benefit is paid under subsection 17(2AB) or (2AC), 20H(2AA) or 24G(3A) or (3B) of the Superannuation (Unclaimed Money and Lost Members) Act 1999 (interest). (3C) Despite subsection (3B), the *tax free component is nil, if the *superannuation benefit is paid under subsection 20H(2AA) of the Superannuation (Unclaimed Money and Lost Members) Act 1999 (interest) in respect of a person who: (a) is a former temporary resident (within the meaning of that Act) when the payment is made; or (b) if the person died before the payment is made—was a former temporary resident just before dying. 12 Subsection 307‑220(4) Omit "section 20H", substitute "subsection 20H(2), (2AA) or (2A)". 13 Subsection 307‑300(1) Omit "subsection 17(2) or section 20H or 24G", substitute "subsection 17(2), 20H(2), (2AA), (2A) or (3) or 24G(2)". 14 Subsection 307‑300(2) After "as follows", insert "(unless subsection (3A) applies)". 15 Subsection 307‑300(2) (method statement, step 1, note) Omit "section 20H", substitute "subsection 20H(2) or (3)". 16 Subsection 307‑300(2) (method statement, step 1, note) Omit "section 24G", substitute "subsection 24G(2)". 17 After subsection 307‑300(3) Insert: (3A) The element taxed in the fund is nil, if the *superannuation benefit is paid under subsection 20H(2AA) of the Superannuation (Unclaimed Money and Lost Members) Act 1999 (interest). Note: The taxable component of a superannuation benefit paid by the Commissioner under subsection 17(2AB) or (2AC) or 24G(3A) or (3B) of the Superannuation (Unclaimed Money and Lost Members) Act 1999, or under subsection 20H(2AA) in respect of a person who is not a former temporary resident, is nil: see subsections 307‑142(3B) and (4) of this Act. 18 Subsection 307‑350(2B) Omit "subsection 17(2) and sections 20H and 24G", substitute "subsections 17(2), 20H(2), (2AA), (2A) and (3) and 24G(2)". Superannuation (Departing Australia Superannuation Payments Tax) Act 2007 19 Subsection 5(2) Omit "section 20H", substitute "subsection 20H(2), (2AA) or (2A)". Superannuation (Unclaimed Money and Lost Members) Act 1999 20 Subsection 17(2A) Omit "section 20H", substitute "subsection 20H(2) or (3)". 21 Subsection 17(2A) (note) Omit "Section 20H provides", substitute "Subsections 20H(2) and (3) provide". 22 Subparagraph 20H(1)(b)(iii) Omit "section 17", substitute "subsection 17(2)". 23 Subparagraph 20H(1)(b)(iv) Omit "this section in respect of the person", substitute "subsections (2) and (3) of this section in respect of the person (disregarding an amount paid under subsection (3), to the extent the amount was attributable to interest that would have been payable under subsection (2A) apart from subsection (3))". 24 Subparagraph 20H(1)(b)(vi) Omit "section 24G", substitute "subsection 24G(2)". 25 Paragraph 20H(2B)(a) Omit "section 17, 24E or 24G", substitute "subsection 17(1) or (2), section 24E or subsection 24G(2)". 26 Paragraph 20M(1)(a) Omit "section 20H", substitute "subsection 20H(2), (2AA) or (2A)". 27 Section 20P (paragraph (a) of the example) Omit "section 20H", substitute "subsection 20H(2) or (3)". 28 Subsection 24E(5) (note 1) Omit "section 17", substitute "subsection 17(1)". 29 Subsection 24G(4) Omit "section 20H", substitute "subsection 20H(2) or (3)". 30 Subsection 24G(4) (note) Omit "Section 20H provides", substitute "Subsections 20H(2) and (3) provide". 31 Paragraph 24L(1)(a) Omit "section 24G", substitute "subsection 24G(2) or (3A)". 32 Subsection 29(4) Omit "section 20H", substitute "subsection 20H(2), (2AA), (2A) or (3)". Part 2—Other amendments Income Tax Assessment Act 1997 33 Section 11‑15 (at the end of the table item headed "interest") Add: unclaimed money and property 51‑120 34 At the end of Division 51 Add: 51‑120 Interest on unclaimed money and property The following amounts are exempt from income tax: (a) an amount of interest paid under paragraph 69(7AA)(b) of the Banking Act 1959; Note: An amount of interest paid under paragraph 69(7AA)(a) of the Banking Act 1959 is not ordinary income or statutory income. (b) an amount of interest paid under subsection 1341(3A) of the Corporations Act 2001; (c) an amount of interest paid under subsection 51C(1A) of the First Home Saver Accounts Act 2008; (d) an amount an *FHSA provider contributes or pays under paragraph 51C(2)(b) of the First Home Saver Accounts Act 2008 because it receives an amount under subsection 51C(1A); (e) an amount of interest paid under paragraph 216(7A)(b) of the Life Insurance Act 1995. Note: An amount of interest paid under paragraph 216(7A)(a) of the Life Insurance Act 1995 is not ordinary income or statutory income. Note: For interest paid under the Superannuation (Unclaimed Money and Lost Members) Act 1999, see subsections 307‑142(3B) and (3C). Schedule 2—Airline transport fringe benefits Fringe Benefits Tax Assessment Act 1986 1 Division 8 of Part III Repeal the Division. 2 After paragraph 42(1)(aa) Insert: (ab) if paragraph (aa) does not apply and the benefit is an airline transport fringe benefit—an amount equal to 75% of the stand‑by airline travel value of the benefit at the time the transport starts; or 3 Paragraph 42(1)(a) Omit "paragraph (aa) does not apply", substitute "neither paragraph (aa) nor (ab) applies". 4 Paragraph 42(1)(b) Omit "neither paragraph (aa) nor (a)", substitute "none of the above paragraphs". 5 After paragraph 48(aa) Insert: (ab) if paragraph (aa) does not apply and the benefit is an airline transport fringe benefit—an amount equal to 75% of the stand‑by airline travel value of the benefit at the comparison time; or 6 Paragraph 48(a) Omit "paragraph (aa) does not apply", substitute "neither paragraph (aa) nor (ab) applies". 7 After paragraph 49(aa) Insert: (ab) if paragraph (aa) does not apply and the benefit is an airline transport fringe benefit—an amount equal to 75% of the stand‑by airline travel value of the benefit at the comparison time; or 8 Paragraph 49(a) Omit "paragraph (aa) does not apply", substitute "neither paragraph (aa) nor (ab) applies". 9 Paragraph 58P(1)(b) Repeal the paragraph. 10 Section 62 (heading) Repeal the heading, substitute: 62 Reduction of aggregate taxable value of in‑house fringe benefits 11 Subsection 62(1) Omit "eligible fringe benefits", substitute "in‑house fringe benefits". 12 Subsection 62(2) Repeal the subsection, substitute: (2) Subsection (1) does not apply to an in‑house fringe benefit provided under a salary packaging arrangement. 13 Subsection 136(1) (definition of airline operator) Repeal the definition. 14 Subsection 136(1) (definition of airline transport benefit) Repeal the definition. 15 Subsection 136(1) (definition of airline transport fringe benefit) Repeal the definition, substitute: airline transport fringe benefit means an in‑house property fringe benefit, or in‑house residual fringe benefit, to the extent that the benefit: (a) is the provision of transport in a passenger aircraft operated by a carrier and any incidental services on board the aircraft; and (b) is provided subject to the stand‑by restrictions that customarily apply in relation to the provision of airline transport to employees in the airline industry. 16 Subsection 136(1) (definition of comparison time) Repeal the definition, substitute: comparison time, in relation to a residual fringe benefit, means: (a) if the fringe benefit is constituted by a benefit to which subsection 46(2) applies—the start of the billing period referred to in that subsection in relation to the benefit; or (b) if the fringe benefit is a period residual fringe benefit—the time when the recipients overall benefit started to be provided; or (c) if the fringe benefit is an airline transport fringe benefit—the time when the transport starts; or (d) otherwise—the time when the benefit is provided. 17 Subsection 136(1) (definition of domestic route) Repeal the definition. 18 Subsection 136(1) (definition of exclusive employee airline transport benefit) Repeal the definition. 19 Subsection 136(1) (definition of extended travel airline transport benefit) Repeal the definition. 20 Subsection 136(1) (definition of international route) Repeal the definition. 21 Subsection 136(1) (definition of providers published air fare) Repeal the definition. 22 Subsection 136(1) (definition of qualifying air fare) Repeal the definition. 23 Subsection 136(1) (paragraph (a) of the definition of recipients contribution) Omit "an airline transport fringe benefit,". 24 Subsection 136(1) (paragraph (a) of the definition of recipients contribution) Omit "the recipients transport,". 25 Subsection 136(1) (definition of recipients transport) Repeal the definition. 26 Subsection 136(1) Insert: stand‑by airline travel value, in relation to an airline transport fringe benefit, means: (a) if the transport is over a domestic route—50% of the carrier's lowest standard single economy air fare: (i) for that route; and (ii) as publicly advertised during the year of tax; or (b) if the transport is over an international route—50% of the lowest of any carrier's standard single economy air fare: (i) for that route; and (ii) as publicly advertised during the year of tax. 27 Subsection 136(1) (definition of stand‑by value) Repeal the definition. 28 Subsection 136(1) (definition of travel agent) Repeal the definition. 29 Subsection 136(1) (definition of travel diary) Omit "an airline transport fringe benefit,". 30 Paragraph 138C(a) Repeal the paragraph. 31 Application of amendments The amendments made by this Schedule apply in relation to the provision after 7.30 pm, by legal time in the Australian Capital Territory, on 8 May 2012 of: (a) transport in aircraft; and (b) incidental services on board aircraft. Schedule 3—Rural water use Income Tax Assessment Act 1997 1 Section 11‑55 (after table item headed "employment") Insert: environment water infrastructure improvement payments......... 59‑65 2 Section 12‑5 (table item headed "water facilities") Repeal the item, substitute: water facilities improvements............................. 26‑100 see also capital allowances 3 At the end of Division 26 Add: 26‑100 Expenditure attributable to water infrastructure improvement payments (1) You cannot deduct under this Act *SRWUIP expenditure if the matching *SRWUIP payment is, or is reasonably expected to be, *non‑assessable non‑exempt income (whether for you or for another entity) under section 59‑65. (2) SRWUIP expenditure, in respect of a *SRWUIP program, is expenditure that: (a) you incur that satisfies an obligation under an *arrangement under the program; and (b) is, or is reasonably expected to be, matched by a *SRWUIP payment in respect of the program. (3) However, treat the expenditure as if it had never been SRWUIP expenditure if it is no longer reasonable to expect that the expenditure will be matched by a *SRWUIP payment in respect of the program. 4 After section 40‑220 Insert: 40‑222 Cost reduced by water infrastructure improvement expenditure The *cost of a *depreciating asset is reduced by any portion of it that consists of expenditure that you cannot deduct because of section 26‑100. 5 Subsection 40‑515(3) Repeal the subsection, substitute: Limit on deduction (3) You cannot deduct more in total than: (a) for a *water facility—the amount of capital expenditure (disregarding expenditure that you cannot deduct because of section 26‑100 (about water infrastructure improvement expenditure)) incurred on the facility; or (b) for a *horticultural plant—the amount of capital expenditure incurred on the plant. 6 Section 40‑540 (definition of expenditure) After "capital expenditure", insert "(disregarding expenditure that you cannot deduct because of section 26‑100 (about water infrastructure improvement expenditure))". 7 At the end of subsection 43‑70(2) Add: ; or (i) expenditure that you cannot deduct because of section 26‑100 (about water infrastructure improvement expenditure). 8 At the end of Division 59 Add: 59‑65 Water infrastructure improvement payments (1) A *SRWUIP payment, in respect of a *SRWUIP program, to an entity that is a participant in the program is not assessable income and is not *exempt income if: (a) the entity has made a choice under subsection (2) for the program; and (b) if the payment is an *indirect SRWUIP payment—the entity *derives the payment because it owns an asset (otherwise than under a *financial arrangement) to which the program relates. Note: One of the requirements for a SRWUIP payment is for the SRWUIP program to be on the published list of SRWUIP programs for the day the payment is made (see subsection 59‑67(5)). (2) An entity may make a choice for a *SRWUIP program under this subsection if, in an income year: (a) the entity *derives a *SRWUIP payment in respect of the program but has not, in an earlier income year: (i) derived a SRWUIP payment in respect of the program; or (ii) incurred *SRWUIP expenditure in respect of the program; or (b) the entity incurs SRWUIP expenditure in respect of the program but has not, in an earlier income year: (i) derived a SRWUIP payment in respect of the program; or (ii) incurred SRWUIP expenditure in respect of the program. Disregard subsection 26‑100(3) (about expenditure that is never SRWUIP expenditure) for the purposes of this subsection. (3) The choice must be: (a) made in the *approved form; and (b) made: (i) unless subparagraph (ii) or (iii) applies—on or before the day the entity lodges its *income tax return for the income year; or (ii) if the Commissioner makes an assessment of the entity's taxable income for the income year before the entity lodges its income tax return for the income year, and subparagraph (iii) does not apply—on or before the day the Commissioner makes that assessment; or (iii) within such further time as the Commissioner allows. The choice cannot be revoked. Integrity rule (4) Subsection (1) does not apply if, at the time the entity *derives the *SRWUIP payment in respect of a *SRWUIP program, it is reasonable to conclude that: (a) the entity will not incur expenditure at least equal to the payment on works required by the program; and (b) despite not incurring such expenditure, the entity will comply with the program because an *associate of the entity will incur expenditure on those works; and (c) the associate has not made, and will not make, a choice under subsection (2) for the program. 59‑67 Meaning of SRWUIP program, SRWUIP payment, direct SRWUIP payment and indirect SRWUIP payment (1) A SRWUIP program is a program under the program administered by the Commonwealth known as the Sustainable Rural Water Use and Infrastructure program. (2) A SRWUIP payment, in respect of a *SRWUIP program, is: (a) a *direct SRWUIP payment in respect of the program; or (b) an *indirect SRWUIP payment in respect of the program. (3) A direct SRWUIP payment is a payment by the Commonwealth to a participant in a *SRWUIP program to the extent that it is made under that program. (4) An indirect SRWUIP payment is a payment to a participant in a *SRWUIP program to the extent that it is reasonably attributable to a payment by the Commonwealth under that program. (5) For the purposes of subsections (3) and (4), treat a payment as being made under a *SRWUIP program only if that SRWUIP program is on the published list of SRWUIP programs (see section 59‑70) for the day the payment is made. (6) However, treat a payment as if it had never been made under a *SRWUIP program to the extent that the Commonwealth seeks to recover the payment. Example: The Commonwealth seeks to recover half of a payment made under a SRWUIP program. The remaining half is still a payment made under the SRWUIP program. 59‑70 List of SRWUIP programs (1) The *Water Secretary must keep a list of *SRWUIP programs. The list must: (a) specify the days for which each program is on the list; and (b) be published on the *Water Department's website. Example: A program could be listed for each day on or after 1 July 2011. Entering SRWUIP programs on the list (2) The *Water Secretary must enter on the list each *SRWUIP program (and its days) in accordance with a direction under subsection (3). (3) The Minister and the *Water Minister may jointly direct the *Water Secretary to enter a program (and its days) on the list only if the Water Minister has notified the Minister in writing that the Water Minister is satisfied that the program: (a) is a *SRWUIP program; and (b) will generate efficiencies in water use through infrastructure improvements. (4) A direction under subsection (3) must be in writing and specify the days for which the *SRWUIP program is to be on the list. Some or all of those days may be before the day the direction is given. Changing the days for which a SRWUIP program is listed (5) The Minister and the *Water Minister may jointly direct the *Water Secretary to change the list to specify: (a) additional days (including days before the day the direction is given) for which a *SRWUIP program is on the list; or (b) the final day (which must be after the day the direction is given) for which a SRWUIP program is on the list. The *Water Secretary must change the list accordingly. (6) A direction under subsection (5) must be in writing. Giving directions (7) The Minister and the *Water Minister must have regard to the policies and budgetary priorities of the Commonwealth Government in deciding whether to give a direction under subsection (3) or (5). 59‑75 Commissioner to be kept informed The *Water Secretary must notify the Commissioner about each payment described in subsection 59‑67(6) that the Commonwealth seeks to recover. 59‑80 Amending assessments Section 170 of the Income Tax Assessment Act 1936 does not prevent the amendment of an assessment for the purpose of giving effect to an outcome that is consequential on any or all of the following events: (a) the inclusion of a *SRWUIP program on the published list of SRWUIP programs (see section 59‑70); (b) the publication of a change to a SRWUIP program's listing on the published list of SRWUIP programs; (c) the Commonwealth seeking to recover a payment described in subsection 59‑67(6); (d) the making of a choice under subsection 59‑65(2); (e) the event that causes subsection 26‑100(3) to treat expenditure as if it had never been *SRWUIP expenditure; if the amendment is made at any time during the period of 2 years starting immediately after that event. Note: Section 170 of the Income Tax Assessment Act 1936 specifies the usual period within which assessments may be amended. 9 At the end of section 110‑38 Add: (7) Expenditure does not form part of any element of the cost base to the extent that section 26‑100 prevents it being deducted. Note: Section 26‑100 denies deductions for certain expenditure on water infrastructure improvements. 10 After subsection 110‑55(9F) Insert: (9G) Expenditure does not form part of the reduced cost base to the extent that section 26‑100 prevents it being deducted. Note: Section 26‑100 denies deductions for certain expenditure on water infrastructure improvements. 11 After paragraph 118‑37(1)(g) Insert: (ga) a *water entitlement, to the extent that the CGT event happens because an entity *derives a *SRWUIP payment that is *non‑assessable non‑exempt income under section 59‑65; (gb) a *SRWUIP payment you derive that is non‑assessable non‑exempt income under section 59‑65; 12 Subsection 995‑1(1) Insert: direct SRWUIP payment has the meaning given by subsection 59‑67(3). 13 Subsection 995‑1(1) Insert: indirect SRWUIP payment has the meaning given by subsection 59‑67(4). 14 Subsection 995‑1(1) Insert: SRWUIP expenditure has the meaning given by subsections 26‑100(2) and (3). 15 Subsection 995‑1(1) Insert: SRWUIP payment has the meaning given by subsection 59‑67(2). 16 Subsection 995‑1(1) Insert: SRWUIP program has the meaning given by subsection 59‑67(1). 17 Subsection 995‑1(1) Insert: Water Secretary means the Secretary of the *Water Department. 18 Application of amendments The amendments made by this Schedule apply in relation to payments made on or after 1 April 2010 by the Commonwealth under a SRWUIP program. 19 Transitional provision—time for making choices (1) This item applies if, apart from this item, a choice under subsection 59‑65(2) of the Income Tax Assessment Act 1997 must be made on or before the day this Schedule commences. (2) Despite paragraph 59‑65(3)(b) of that Act, the choice must be made and given to the Commissioner: (a) within the 2 year period starting at that commencement; or (b) within such further time as the Commissioner allows. Note: The requirements for making the choice must still be satisfied (see subsection 59‑65(2) of that Act). This item does not change the income years referred to in that subsection. Schedule 5—Loss carry back Part 1—Main amendments Income Tax Assessment Act 1997 1 Section 67‑23 (after table item 13) Insert: 13A corporate losses *loss carry back tax offset under Division 160 2 Before Division 164 Insert: Division 160—Corporate loss carry back tax offset Table of Subdivisions Guide to Division 160 160‑A Object of this Division 160‑B Entitlement to and amount of loss carry back tax offset 160‑C Loss carry back choice Guide to Division 160 160‑1 What this Division is about A corporate tax entity can choose to "carry back" a tax loss it has for the current year, or for the preceding income year, against the income tax liability it had for either of the 2 income years preceding the current year. The entity gets a refundable tax offset for the current year that is a proxy for the tax the entity would save if it deducted the loss in the income year to which the loss is "carried back". The refundable tax offset is capped at the lesser of $1,000,000 multiplied by the corporate tax rate, and the entity's franking account balance. Subdivision 160‑A—Object of this Division Table of sections 160‑5 Object of this Division 160‑5 Object of this Division The object of this Division is to reduce the tax disincentive for corporate tax entities to take sensible investment risks. The Division does this by allowing such entities to offset their tax losses against their income tax liabilities for the 2 previous income years through a refundable tax offset. Subdivision 160‑B—Entitlement to and amount of loss carry back tax offset Table of sections 160‑10 Entitlement to loss carry back tax offset 160‑15 Amount of loss carry back tax offset 160‑10 Entitlement to loss carry back tax offset An entity is entitled to a *tax offset (the loss carry back tax offset) for the *current year if the following conditions are satisfied: (a) the entity is a *corporate tax entity throughout the current year; Note: See also section 160‑25. (b) either or both of the following income years were *loss years: (i) the current year; (ii) the income year just before the current year (the middle year); (c) the entity had an *income tax liability for either or both of the following income years: (i) the middle year; (ii) the income year just before the middle year (the earliest year); (d) any of the following requirements are satisfied for the current year and each of the 5 income years before the current year: (i) the entity has lodged its *income tax return for the year; (ii) the entity was not required to lodge an income tax return for the year; (iii) the Commissioner has made an assessment of the entity's income tax for the year; (e) the entity makes a *loss carry back choice for the current year in accordance with Subdivision 160‑C. Note 1: The entity is entitled to only one loss carry back tax offset for the current year. However, that offset has 2 components, one relating to the earliest year and one relating to the middle year: see section 160‑15. Note 2: The loss carry back tax offset is a refundable tax offset: see section 67‑23. 160‑15 Amount of loss carry back tax offset (1) The amount of the entity's *loss carry back tax offset for the *current year is the least of the following amounts: (a) the sum of the *loss carry back tax offset components for the earliest year and the middle year; (b) the entity's *franking account balance at the end of the current year; (c) $1,000,000 multiplied by the *corporate tax rate for the current year. (2) For the purposes of working out the amount of the entity's *loss carry back tax offset for the *current year, the entity's loss carry back tax offset component for an income year is worked out as follows: Method statement Step 1. Start with the amount of the *tax loss the entity *carries back to the income year (or the sum of the amounts of the tax losses the entity carries back to the income year). Note: If no amount is carried back to the income year, the step 1 amount, and the loss carry back tax offset component for the income year, are nil. Step 2. Reduce the step 1 amount by the entity's *net exempt income for the income year. Note: Do not reduce the step 1 amount by the entity's net exempt income to the extent the net exempt income has already been utilised: see section 960‑20. Step 3. Multiply the step 2 amount by the *corporate tax rate for the *current year. Step 4. The entity's loss carry back tax offset component for the income year is so much of the entity's *income tax liability for the income year as does not exceed the step 3 amount. Example: Redom Pty Ltd has at the end of the 2013‑14 income year: (a) a tax loss of $900,000 for that year and a franking account balance of $280,000; and (b) for the 2011‑12 income year—an income tax liability of $120,000 and net exempt income of $5,000; and (c) for the 2012‑13 income year—an income tax liability of $210,000. Redom chooses to carry back $405,000 of its tax loss for the 2013‑14 year to the 2011‑12 year and $495,000 of that loss to the 2012‑13 year. Redom's loss carry back tax offset for the 2013‑14 year is $268,500, worked out as follows: (a) an offset component for the 2011‑12 income year of $120,000, calculated by starting with the $405,000 carried back, reducing that at step 2 by $5,000, and multiplying the result by 30%. (b) an offset component for the 2012‑13 income year of $148,500, calculated by starting with the $495,000 carried back and multiplying the result by 30%. The sum of the 2 components is $268,500 (which is less than Redom's $280,000 franking account balance at the end of the 2013‑14 year). If that sum had exceeded that balance, the amount of the offset would have been limited under paragraph (1)(b) to that balance. Income tax liability for earliest year already utilised (3) For the purposes of applying step 4 of the method statement in subsection (2) to work out the entity's *loss carry back tax offset component for the earliest year, disregard so much of the entity's *income tax liability for the earliest year as has previously been included (for the purpose of working out the entity's entitlement to a *loss carry back tax offset for the middle year) in a loss carry back tax offset component. Foreign residents (4) Paragraph (1)(b) does not apply if the entity was a foreign resident (other than an *NZ franking company) for: (a) if the entity *carries back an amount to the earliest year—more than half of the earliest year; and (b) if the entity carries back an amount to the middle year—more than half of the middle year. Subdivision 160‑C—Loss carry back choice Table of sections 160‑20 Loss carry back choice 160‑25 Entity must have been a corporate tax entity during relevant years 160‑30 Transferred tax losses etc. not included 160‑35 Integrity rule—no loss carry back tax offset if scheme entered into 160‑20 Loss carry back choice (1) The entity may make a loss carry back choice for the *current year that specifies: (a) how much of the entity's *tax loss for the current year (if any) is to be carried back to the earliest year; and (b) how much of the entity's tax loss for the middle year (if any) is to be carried back to the earliest year; and (c) how much of the entity's tax loss for the current year (if any) is to be carried back to the middle year. (2) The choice must be made in the *approved form by: (a) the day the entity lodges its *income tax return for the *current year; or (b) such later day as the Commissioner allows. 160‑25 Entity must have been a corporate tax entity during relevant years (1) The entity cannot *carry back an amount of a *tax loss to the earliest year unless the entity was a *corporate tax entity throughout the earliest year (disregarding any period when the entity was not in existence) and the middle year. (2) The entity cannot *carry back an amount of a *tax loss to the middle year unless the entity was a *corporate tax entity throughout the middle year (disregarding any period when the entity was not in existence). Note: The entity must be a corporate tax entity throughout the current year: see paragraph 160‑10(a). 160‑30 Transferred tax losses etc. not included The entity cannot *carry back an amount of a *tax loss for an income year, to the extent that the loss: (a) was transferred to or from the entity under Division 170 or Subdivision 707‑A (about certain company groups); or (b) exceeds the amount that would be the entity's tax loss for the year if section 36‑55 (about excess franking offsets) were disregarded. 160‑35 Integrity rule—no loss carry back tax offset if scheme entered into No loss carry back tax offset if scheme entered into (1) The *corporate tax entity cannot *carry back an amount of a *tax loss to an income year (the gain year) if: (a) there is a *scheme for a disposition of *membership interests, or an *interest in membership interests, in: (i) the corporate tax entity; or (ii) an entity that has a direct or indirect interest in the corporate tax entity; and (b) the scheme is entered into or carried out during the period: (i) starting at the start of the gain year; and (ii) ending at the end of the *current year; and (c) the disposition results in a change in who controls, or is able to control, (whether directly, or indirectly through one or more interposed entities) the voting power in the corporate tax entity; and (d) another entity receives, in connection with the scheme, a *financial benefit calculated by reference to one or more *loss carry back tax offsets to which it was reasonable, at the time the scheme was entered into or carried out, to expect the corporate tax entity would be entitled; and (e) having regard to the relevant circumstances of the scheme, it would be concluded that a person, or one of the persons, who entered into or carried out the scheme or any part of the scheme did so for a purpose (whether or not the dominant purpose but not including an incidental purpose) of enabling the corporate tax entity to get a loss carry back tax offset. Relevant circumstances (2) For the purposes of paragraph (1)(e), the relevant circumstances of the *scheme for a disposition include the following: (a) the extent to which the *corporate tax entity continued to conduct the same activities after the scheme as it did before the scheme; (b) if the corporate tax entity continued to use the same assets after the scheme as it did before the scheme—the extent to which those assets were assets for which equivalents were not readily available at the time of the scheme; (c) the matters referred to in subparagraphs 177D(b)(i) to (viii) of the Income Tax Assessment Act 1936 (applying subparagraph 177D(b)(iv) as if the reference to Part IVA of that Act were instead a reference to this section). Application of this section to non‑share equity interests (3) This section: (a) applies to a *non‑share equity interest in the same way as it applies to a *membership interest; and (b) applies to an *equity holder in the same way as it applies to a *member. 3 Subsection 995‑1(1) Insert: income tax liability, of an entity for an income year, is the amount assessed as being the amount of income tax that the entity owes (as mentioned in step 4 of the method statement in subsection 4‑10(3)) for the financial year applicable to the entity under subsection 4‑10(2). 4 Subsection 995‑1(1) Insert: interest in membership interests has the same meaning as in section 177EA of the Income Tax Assessment Act 1936. 5 Subsection 995‑1(1) Insert: scheme for a disposition, in relation to *membership interests or an *interest in membership interests, has the same meaning as in section 177EA of the Income Tax Assessment Act 1936. Income Tax (Transitional Provisions) Act 1997 6 Before Division 165 Insert: Division 160—Loss carry back tax offset Table of Subdivisions 160‑A Application of Division 160 of the Income Tax Assessment Act 1997 Subdivision 160‑A—Application of Division 160 of the Income Tax Assessment Act 1997 Table of sections 160‑1 Application of Division 160 of the Income Tax Assessment Act 1997 160‑5 Modification for 2012‑13 income year—no carry back to 2010‑11 income year 160‑1 Application of Division 160 of the Income Tax Assessment Act 1997 Division 160 of the Income Tax Assessment Act 1997 applies to assessments for the 2012‑13 income year and later income years. 160‑5 Modification for 2012‑13 income year—no carry back to 2010‑11 income year (1) This section applies to assessments for the 2012‑13 income year. (2) Despite subsection 160‑15(2) of the Income Tax Assessment Act 1997, an entity's loss carry back tax offset component for the 2010‑11 income year is treated as being nil. Part 2—Ascertainment of totals of tax offset refunds Division 1—Amendments relating to the 2012‑13 income year Income Tax Assessment Act 1997 7 Section 355‑700 Repeal the section. 8 Application of amendment The amendment made by item 7 does not apply in relation to an objection made before the commencement of this item. 9 Subsection 995‑1(1) Insert: tax offset refund, of yours for an income year, means a refund you can get as mentioned in item 40 of the table in subsection 63‑10(1) (refundable tax offsets) for the income year. Income Tax (Transitional Provisions) Act 1997 10 At the end of Part 2‑20 Add: Division 67—Refundable tax offset rules Table of Subdivisions 67‑L Notices of totals of tax offset refunds for 2012‑13 income year Subdivision 67‑L—Notices of totals of tax offset refunds for 2012‑13 income year Table of sections Giving notices 67‑100 Notices of total of tax offset refunds 67‑105 Deemed notices 67‑110 Requests for notices 67‑115 Effect of notices Amending notices 67‑120 Amendment of notices Validity of notices, evidence and review 67‑125 Validity of notices 67‑130 Evidence 67‑135 Review of notices Giving notices 67‑100 Notices of total of tax offset refunds (1) The Commissioner may at any time give you a notice specifying: (a) the amount the Commissioner has ascertained as being the total of your tax offset refunds for the 2012‑13 income year; or (b) that the Commissioner has ascertained that you can get no such refunds for the 2012‑13 income year. (2) The notice may be included in any notice the Commissioner gives to you, including a notice of assessment. (3) The Commissioner may give you the notice electronically if you are required to lodge, or have lodged, your income tax return for the income year electronically. 67‑105 Deemed notices (1) This section applies if: (a) an entity is a self‑assessment entity for the 2012‑13 income year; and (b) the entity lodges its income tax return for the 2012‑13 income year at a particular time; and (c) just before that time, the Commissioner has not already given the entity a notice under section 67‑100. (2) The Commissioner is taken: (a) to have ascertained, in accordance with what the entity specified in the return: (i) an amount as being the total of the entity's tax offset refunds for the income year; or (ii) that the entity can get no such refunds for the income year; and (b) to have given the entity a notice to that effect under section 67‑100 on the day on which the entity lodges the return. 67‑110 Requests for notices (1) You may request the Commissioner in the approved form to give you a notice under this Subdivision. (2) The Commissioner must comply with the request if: (a) the Commissioner has not already given you a notice under this Subdivision; and (b) you make the request on or after: (i) the day you lodge your income tax return for the income year; or (ii) if you were not required to lodge an income tax return for the income year—the day after the end of the income year; and (c) you make the request before the end of: (i) if the Commissioner has given or gives you a notice of assessment for the income year—the period within which you may object against the assessment under paragraph 14ZW(1)(aa) of the Taxation Administration Act 1953; or (ii) otherwise—2 years after the end of the income year; or (iii) in any case—such further period as the Commissioner allows. (3) The Commissioner is treated, for the purposes of section 67‑135, as having given you, on the 60th day after you make the request, a notice specifying that the Commissioner has ascertained that you can get no tax offset refunds for the income year, if the Commissioner has not complied with the request by that 60th day. 67‑115 Effect of notices (1) Your entitlement to a tax offset refund, and the time by which the refund must be applied in accordance with Divisions 3 and 3A of Part IIB of the Taxation Administration Act 1953, do not depend on, and are not in any way affected by, the giving of a notice under this Subdivision. (2) An ascertainment mentioned in subsection 67‑100(1) is not an assessment for the purposes of the income tax law. Amending notices 67‑120 Amendment of notices The Commissioner may amend a notice at any time. An amended notice is a notice for all purposes of this Subdivision. Validity of notices, evidence and review 67‑125 Validity of notices The validity of a notice is not affected by non‑compliance with the provisions of this Act or of any other taxation law. 67‑130 Evidence (1) The production of: (a) a notice given under this Subdivision; or (b) a document under the hand of the Commissioner, a Second Commissioner, or a Deputy Commissioner, purporting to be a copy of a notice given under this Subdivision; is, except in proceedings under Part IVC of the Taxation Administration Act 1953 on a review or appeal relating to the notice, conclusive evidence that the notice was given and of the particulars in it. (2) The production of a document under the hand of the Commissioner, a Second Commissioner, or a Deputy Commissioner, purporting to be a copy of or extract from a notice given under this Subdivision is evidence of the matters set out in the document to the same extent as the original would have been evidence of those matters. 67‑135 Review of notices (1) You may object, in the manner set out in Part IVC of the Taxation Administration Act 1953, against a notice given to you under this Subdivision if you are dissatisfied with the notice. (2) Section 14ZV of the Taxation Administration Act 1953 applies to an amended notice in the same way as it applies to an amended determination. (3) Despite subsection 14ZW(1) of that Act (and without limiting subsections 14ZW(2) and (3)), you must lodge the objection with the Commissioner before the end of: (a) if the Commissioner gives you a notice of assessment for the income year—the period within which you may object against the assessment; or (b) if the Commissioner does not give you a notice of assessment—the period within which you may have objected against an assessment under subsection 14ZW(1) if the Commissioner had given you notice of the assessment on the day the Commissioner gave you the notice under this Subdivision. Division 2—Amendments applying from the 2013‑14 year of income Income Tax Assessment Act 1936 11 Subsection 6(1) (paragraphs (a) to (d) of the definition of assessment) Repeal the paragraphs, substitute: (a) the ascertainment: (i) of the amount of taxable income (or that there is no taxable income); and (ii) of the tax payable on that taxable income (or that no tax is payable); and (iii) of the total of a taxpayer's tax offset refunds for a year of income (or that the taxpayer can get no such refunds for the year of income); or Note 1: A taxpayer does not have a taxable income if the taxpayer's deductions equal or exceed the taxpayer's assessable income: see subsection 4‑15(1) of the Income Tax Assessment Act 1997. Note 2: A taxpayer may have no tax payable on an amount of taxable income if that income is below the tax‑free threshold or if the taxpayer's tax offsets reduce the taxpayer's basic income tax liability to nil. (b) for a taxpayer that is the trustee of a unit trust that is a corporate unit trust (within the meaning of section 102J)—the ascertainment: (i) of the net income of the trust (within the meaning of section 102D) (or that there is no net income); and (ii) of the tax payable on that net income (or that no tax is payable); and (iii) of the total of the taxpayer's tax offset refunds for a year of income (or that the taxpayer can get no such refunds for the year of income); or (c) for a taxpayer that is the trustee of a unit trust that is a public trading trust (within the meaning of section 102R)—the ascertainment: (i) of the net income of the trust (within the meaning of section 102M) (or that there is no net income); and (ii) of the tax payable on that net income (or that no tax is payable); and (iii) of the total of a taxpayer's tax offset refunds for a year of income (or that the taxpayer can get no such refunds for the year of income); or (d) for a taxpayer that is the trustee of a trust estate (other than a trustee to which paragraph (b) or (c) applies or the trustee of a complying superannuation fund, a non‑complying superannuation fund, a complying approved deposit fund, a non‑complying approved deposit fund or a pooled superannuation trust)—the ascertainment: (i) of so much of the net income of the trust estate as is net income in respect of which the trustee is liable to pay tax (or that there is no net income in respect of which the trustee is so liable); and (ii) of the tax payable on that net income (or that no tax is payable); and (iii) of the total of a taxpayer's tax offset refunds for a year of income (or that the taxpayer can get no such refunds for the year of income); or 12 Subsection 6(1) Insert: tax offset refund has the meaning given by the Income Tax Assessment Act 1997. 13 After paragraph 161AA(b) Insert: (ba) the total of its tax offset refunds for that year of income (or that it can get no such refund for that year of income); or 14 Section 166 Repeal the section, substitute: 166 Assessment From the returns, and from any other information in the Commissioner's possession, or from any one or more of these sources, the Commissioner must make an assessment of: (a) the amount of the taxable income (or that there is no taxable income) of any taxpayer; and (b) the amount of the tax payable thereon (or that no tax is payable); and (c) the total of the taxpayer's tax offset refunds (or that the taxpayer can get no such refunds). 15 Paragraph 166A(3)(c) Repeal the paragraph, substitute: (c) the Commissioner is taken to have made an assessment of: (i) the taxable income or net income (or an assessment that there is no taxable income or net income); and (ii) the tax payable on that income (or that no tax is payable); and (iii) the total of the taxpayer's tax offset refunds for the year of income (or that the taxpayer can get no such refunds); in accordance with what the taxpayer specified in the return; 16 Subsection 168(1) Repeal the subsection, substitute: (1) The Commissioner may at any time during any year, or after its expiration, make an assessment of: (a) the taxable income derived (or that there is no taxable income) in that year or any part of it by any taxpayer; and (b) the tax payable thereon (or that no tax is payable); and (c) the total of the taxpayer's tax offset refunds for that year or that part of it (or that the taxpayer can get no such refunds). 17 After section 172 Insert: 172A Consequences of amendment of assessments of tax offset refunds Amendment increases total of tax offset refunds (1) If, by reason of an amendment of an assessment, the total of a person's tax offset refunds is increased, the Commissioner must apply the amount of the increase in accordance with Divisions 3 and 3A of Part IIB of the Taxation Administration Act 1953. Note: Interest on the amount of the increase may be payable under the Taxation (Interest on Overpayments and Early Payments) Act 1983. Amendment reduces total of tax offset refunds (2) If: (a) by reason of an amendment of an assessment, the total of a person's tax offset refunds is reduced; and (b) as a result, an amount applied in accordance with Divisions 3 and 3A of Part IIB of the Taxation Administration Act 1953 before the amendment was excessive; the person is liable to pay to the Commonwealth the amount of the excess. The amount is due 21 days after the Commissioner gives the person notice of the amended assessment. Note: For provisions about collection and recovery of the amount, see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953. (3) If any of the amount (the overpayment) the person is liable to pay under subsection (2) remains unpaid after the time by which it is due to be paid, the person is liable to pay the general interest charge on the unpaid amount for each day in the period that: (a) starts at the beginning of the day on which the overpayment was due to be paid; and (b) finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid: (i) the overpayment; (ii) general interest charge on any of the overpayment. Note: The general interest charge is worked out under Part IIA of the Taxation Administration Act 1953. 18 Paragraph 175A(2)(b) Omit "payable;", substitute "payable.". 19 Subsection 175A(2) Omit "unless the taxpayer is seeking an increase in the taxpayer's liability". 20 At the end of section 175A Add: (3) Subsection (2) does not prevent the taxpayer from objecting against an assessment if the taxpayer is seeking an increase in: (a) the taxpayer's liability; or (b) the total of the taxpayer's tax offset refunds. Income Tax (Transitional Provisions) Act 1997 21 At the end of subsection 67‑100(1) Add: Note: The total of your tax offset refunds for later income years is included in your assessment for those years: see Part IV of the Income Tax Assessment Act 1936. Taxation Administration Act 1953 22 Subsection 8AAB(4) (after table item 10) Insert: 10A 172A Income Tax Assessment Act 1936 repayments of excessive tax offset refunds 23 Subsection 250‑10(1) in Schedule 1 (after table item 50) Insert: 70 excessive tax offset refunds 172A(2) 24 Application of amendments The amendments made by this Division apply to assessments made on or after 1 July 2013 for the 2013‑14 income year or later income years. Division 3—Taxation Administration Act 1953 25 Paragraph 14ZZK(b) Repeal the paragraph, substitute: (b) the applicant has the burden of proving: (i) if the taxation decision concerned is an assessment—that the assessment is excessive or otherwise incorrect and what the assessment should have been; or (ii) in any other case—that the taxation decision concerned should not have been made or should have been made differently. 26 Paragraph 14ZZO(b) Repeal the paragraph, substitute: (b) the appellant has the burden of proving: (i) if the taxation decision concerned is an assessment—that the assessment is excessive or otherwise incorrect and what the assessment should have been; or (ii) in any other case—that the taxation decision should not have been made or should have been made differently. 27 Application of amendments The amendments made by this Division apply to an assessment if: (a) the assessment is made on or after 1 July 2013; and (b) in the case of an assessment that relates to an income year or other accounting period: (i) the income year is the 2013‑14 income year or a later income year; or (ii) the other accounting period commences on or after 1 July 2013. Part 3—Anti‑avoidance Income Tax Assessment Act 1936 28 Subsection 6(1) Insert: loss carry back tax offset has the same meaning as in the Income Tax Assessment Act 1997. 29 After paragraph 177C(1)(ba) Insert: (baa) a loss carry back tax offset being allowable to the taxpayer where the whole or a part of that loss carry back tax offset would not have been allowable, or might reasonably be expected not to have been allowable, to the taxpayer if the scheme had not been entered into or carried out; or 30 After paragraph 177C(1)(e) Insert: (ea) in a case where paragraph (baa) applies—the amount of the whole of the loss carry back tax offset or of