Commonwealth: Tax and Superannuation Laws Amendment (2014 Measures No. 4) Act 2014 (Cth)

Tax and Superannuation Laws Amendment (2014 Measures No. 4) Act 2014 No. 110, 2014 An Act to amend the law relating to taxation, superannuation and excise, and for other purposes Contents 1 Short title 2 Commencement 3 Schedule(s) Schedule 1—Thin capitalisation Part 1—Safe harbour debt amount Income Tax Assessment Act 1997 Part 2—Worldwide gearing debt amount for outward investing entities (non‑ADI) Income Tax Assessment Act 1997 Part 3—Worldwide capital amount Income Tax Assessment Act 1997 Part 4—Safe harbour capital amount Income Tax Assessment Act 1997 Part 5—De minimis threshold Income Tax Assessment Act 1997 Part 6—Worldwide gearing debt amount for inward investing entities (non‑ADI) Income Tax Assessment Act 1997 Part 7—Consequential amendments Income Tax Assessment Act 1997 Part 8—Application Schedule 2—Foreign dividends Part 1—Foreign equity distributions on participation interests Income Tax Assessment Act 1936 Income Tax Assessment Act 1997 Part 2—Repeal of portfolio dividend exemption for CFCs Income Tax Assessment Act 1936 Part 3—Consequential amendments Income Tax Assessment Act 1936 Income Tax Assessment Act 1997 Part 4—Application Schedule 3—Foreign resident CGT integrity measures Part 1—Duplicated assets of corporate groups Income Tax Assessment Act 1997 Part 2—Assets used by permanent establishments Income Tax Assessment Act 1997 Schedule 4—Tax receipts Income Tax Assessment Act 1997 Taxation Administration Act 1953 Schedule 5—Miscellaneous amendments Part 1—References to specific Ministers, Departments and Secretaries Division 1—Main amendments A New Tax System (Goods and Services Tax) Act 1999 Income Tax Assessment Act 1936 Income Tax Assessment Act 1997 Taxation Administration Act 1953 Division 2—Contingent amendments Income Tax Assessment Act 1997 Part 2—Amendments relating to excise Aviation Fuel Revenues (Special Appropriation) Act 1988 Part 3—Amendments relating to numbering Income Tax Assessment Act 1997 Part 4—Other amendments of principal Acts A New Tax System (Goods and Services Tax) Act 1999 Fuel Tax Act 2006 Income Tax Assessment Act 1936 Income Tax Assessment Act 1997 Superannuation Guarantee (Administration) Act 1992 Taxation Administration Act 1953 Part 5—Other amendments of amending Acts New Business Tax System (Consolidation, Value Shifting, Demergers and Other Measures) Act 2002 Superannuation Legislation Amendment (Stronger Super) Act 2012 Tax Laws Amendment (2009 Budget Measures No. 2) Act 2009 Tax Laws Amendment (2011 Measures No. 9) Act 2012 Tax Laws Amendment (2012 Measures No. 3) Act 2012 Tax Laws Amendment (2012 Measures No. 6) Act 2013 Tax Laws Amendment (Research and Development) Act 2011 Tax Laws Amendment (Temporary Budget Repair Levy) Act 2014 Tax and Superannuation Laws Amendment (2014 Measures No. 4) Act 2014 No. 110, 2014 An Act to amend the law relating to taxation, superannuation and excise, and for other purposes [Assented to 16 October 2014] The Parliament of Australia enacts: 1 Short title This Act may be cited as the Tax and Superannuation Laws Amendment (2014 Measures No. 4) Act 2014. 2 Commencement (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms. Commencement information Column 1 Column 2 Column 3 Provision(s) Commencement Date/Details 1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table The day this Act receives the Royal Assent. 16 October 2014 2. Schedules 1 and 2 The day after this Act receives the Royal Assent. 17 October 2014 3. Schedules 3 and 4 The day this Act receives the Royal Assent. 16 October 2014 4. Schedule 5, Part 1, Division 1 The day this Act receives the Royal Assent. 16 October 2014 5. Schedule 5, Part 1, Division 2 The later of: 16 October 2014 (a) the start of the day this Act receives the Royal Assent; and (paragraph (a) applies) (b) immediately after the start of the day Part 2 of Schedule 2 to the Land Transport Infrastructure Amendment Act 2014 commences. However, the provision(s) do not commence at all if the event mentioned in paragraph (b) does not occur. 6. Schedule 5, Part 2 At the same time as Part 2 of Schedule 1 to the Excise Tariff Amendment (Tobacco) Act 2014 commences. 1 December 2013 7. Schedule 5, Parts 3 and 4 The day this Act receives the Royal Assent. 16 October 2014 8. Schedule 5, items 141 and 142 Immediately after the commencement of item 34 of Schedule 13 to the New Business Tax System (Consolidation, Value Shifting, Demergers and Other Measures) Act 2002. 29 June 2002 9. Schedule 5, item 143 Immediately after the commencement of item 19 of Schedule 15 to the New Business Tax System (Consolidation, Value Shifting, Demergers and Other Measures) Act 2002. 24 October 2002 10. Schedule 5, items 144 and 145 1 July 2014. 1 July 2014 11. Schedule 5, item 146 Immediately after the commencement of item 55 of Schedule 1 to the Tax Laws Amendment (2009 Budget Measures No. 2) Act 2009. 14 December 2009 12. Schedule 5, item 147 Immediately after the commencement of item 29 of Schedule 6 to the Tax Laws Amendment (2011 Measures No. 9) Act 2012. 22 December 1999 13. Schedule 5, item 148 Immediately after the commencement of item 83 of Schedule 6 to the Tax Laws Amendment (2011 Measures No. 9) Act 2012. 21 March 2012 14. Schedule 5, item 149 Immediately after the commencement of item 140 of Schedule 6 to the Tax Laws Amendment (2011 Measures No. 9) Act 2012. 21 March 2012 15. Schedule 5, item 150 Immediately after the commencement of item 12 of Schedule 1 to the Tax Laws Amendment (2012 Measures No. 3) Act 2012. 21 June 2012 16. Schedule 5, items 151 and 152 Immediately after the commencement of section 4 of the Tax Laws Amendment (2012 Measures No. 6) Act 2013. 28 June 2013 17. Schedule 5, items 153 and 154 Immediately after the commencement of Part 6 of Schedule 3 to the Tax Laws Amendment (Research and Development) Act 2011. 8 September 2011 18. Schedule 5, items 155 and 156 Immediately after the commencement of section 3 of the Tax Laws Amendment (Temporary Budget Repair Levy) Act 2014. 25 June 2014 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. Schedule 1—Thin capitalisation Part 1—Safe harbour debt amount Income Tax Assessment Act 1997 1 Section 820‑95 (method statement, step 7) Omit "3/4", substitute "3/5". 2 Subsection 820‑100(2) (method statement, step 8) Omit "20/21", substitute "15/16". 3 Section 820‑195 (method statement, step 5) Omit "3/4", substitute "3/5". 4 Subsection 820‑200(2) (method statement, step 6) Omit "20/21", substitute "15/16". 5 Section 820‑205 (method statement, step 5) Omit "3/4", substitute "3/5". 6 Subsection 820‑210(2) (method statement, step 6) Omit "20/21", substitute "15/16". Part 2—Worldwide gearing debt amount for outward investing entities (non‑ADI) Income Tax Assessment Act 1997 7 Paragraph 820‑90(1)(c) Before "a negative amount", insert "nil or". 8 Subsection 820‑90(1) (note) Repeal the note, substitute: Note 1: The safe harbour debt amount differs depending on whether the entity is an outward investor (general) or an outward investor (financial), see sections 820‑95 and 820‑100. Note 2: The worldwide gearing debt amount for an entity that is not also an inward investment vehicle (general) or an inward investment vehicle (financial) differs depending on whether the entity is an outward investor (general) or an outward investor (financial), see section 820‑110. 9 Subsection 820‑90(2) Repeal the subsection, substitute: Entity is also an inward investment vehicle (general) or inward investment vehicle (financial) (2) The entity's maximum allowable debt for an income year is the greatest of the following amounts if the entity is also an *inward investment vehicle (general) or an *inward investment vehicle (financial) for all or any part of that year: (a) the *safe harbour debt amount; (b) the *arm's length debt amount; (c) unless subsection (3) applies to the entity—the *worldwide gearing debt amount. Note 1: The safe harbour debt amount differs depending on whether the entity is an outward investor (general) or an outward investor (financial), see sections 820‑95 and 820‑100. Note 2: The worldwide gearing debt amount for an entity that is also an inward investment vehicle (general) or an inward investment vehicle (financial) differs depending on whether the entity is an outward investor (general) or an outward investor (financial), see section 820‑111. Inward investment vehicles that are not eligible for the worldwide gearing debt amount (3) This subsection applies to an entity, if: (a) the entity has *statement worldwide equity, or *statement worldwide assets, of nil or a negative amount; or (b) *audited consolidated financial statements for the entity for the income year do not exist; or (c) the result of applying the following formula is greater than 0.5: where: average Australian assets of an entity is the average value, for the statement period mentioned in subsection (4), of all the assets of the entity, other than: (a) any assets attributable to the entity's *overseas permanent establishments; or (b) any *debt interests held by the entity, to the extent to which any value of the interests is all or a part of the *controlled foreign entity debt of the entity; or (c) any *equity interests or debt interests held by the entity, to the extent to which any value of the interests is all or a part of the *controlled foreign entity equity of the entity. (4) For the purposes of the definition of average Australian assets in subsection (3) the statement period is the period for which the *audited consolidated financial statements for the entity for the income year have been prepared. (5) For the purposes of the formula in paragraph (3)(c), if: (a) an amount is included in *statement worldwide assets in respect of an asset; and (b) the asset was acquired, held or otherwise dealt with by an entity for a purpose (other than an incidental purpose) that included ensuring that subsection (3) does not apply to an entity; and (c) as a result of the acquisition, holding or dealing with of the asset, the amount included in statement worldwide assets exceeds the amount (including nil) that would otherwise be so included; apply the amount of the excess to reduce statement worldwide assets (or statement worldwide assets as reduced by a previous application of this subsection). 10 Section 820‑110 (heading) Repeal the heading, substitute: 820‑110 Worldwide gearing debt amount—outward investor that is not also an inward investment vehicle 11 Subsection 820‑110(1) (method statement, steps 2, 3 and 4) Repeal the steps, substitute: Step 3. Add 1 to the result of step 1. Step 4. Divide the result of step 1 by the result of step 3. 12 Subsection 820‑110(2) (method statement, steps 2, 3 and 4) Repeal the steps, substitute: Step 3. Add 1 to the result of step 1. Step 4. Divide the result of step 1 by the result of step 3. 13 After section 820‑110 Insert: 820‑111 Worldwide gearing debt amount—outward investor that is also an inward investment vehicle Outward investor (general) (1) If the entity is an *outward investor (general) for the income year, and is also an *inward investment vehicle (general) for all or any part of that year, the worldwide gearing debt amount is the result of applying the method statement in this subsection. Method statement Step 1. Divide the entity's *statement worldwide debt for the income year by the entity's *statement worldwide equity for that year. Step 2. Add 1 to the result of step 1. Step 3. Divide the result of step 1 by the result of step 2. Step 4. Multiply the result of step 3 in this method statement by the result of step 6 in the method statement in section 820‑95. Step 5. Add to the result of step 4 the average value, for that year, of the entity's *associate entity excess amount. The result of this step is the worldwide gearing debt amount. Example: RKR Limited, a company that is an Australian entity, has a worldwide parent entity in Canada. RKR Limited also has permanent establishments in Singapore. RKR Limited has statement worldwide debt of $120 million and statement worldwide equity of $40 million. The result of applying step 1 is therefore 3. Dividing 3 by 4 (through applying steps 2 and 3) and multiplying the result by $75 million (which is the result of step 6 of the method statement in section 820‑95) equals $56.25 million. As the average value of the company's associate entity excess amount is $4 million, the worldwide gearing debt amount is therefore $60.25 million. Outward investor (financial) (2) If the entity is an *outward investor (financial) for the income year, and is also an *inward investment vehicle (financial) for all or any part of that year, the worldwide gearing debt amount is the result of applying the method statement in this subsection. Method statement Step 1. Divide the entity's *statement worldwide debt for the income year by the entity's *statement worldwide equity for that year. Step 2. Add 1 to the result of step 1. Step 3. Divide the result of step 1 by the result of step 2. Step 4. Multiply the result of step 3 in this method statement by the result of step 7 in the method statement in subsection 820‑100(2). Step 5. Add to the result of step 4 the average value, for that year, of the entity's *zero‑capital amount (other than any zero‑capital amount that is attributable to the entity's *overseas permanent establishments). Step 6. Add to the result of step 5 the average value, for that year, of the entity's *associate entity excess amount. The result of this step is the worldwide gearing debt amount. Example: TRR Limited, a company that is an Australian entity, has a worldwide parent entity in the United States of America. TRR Limited also has permanent establishments in Malaysia. TRR Limited has statement worldwide debt of $90 million and statement worldwide equity of $30 million. The result of applying step 1 is therefore 3. Dividing 3 by 4 (through applying steps 2 and 3) and multiplying the result by $100 million (which is the result of step 7 of the method statement in subsection 820‑100(2)) equals $75 million. The zero capital amount is $5 million. Adding that amount to $75 million results in $80 million. As the company does not have any associate entity excess amount, the worldwide gearing debt amount is therefore $80 million. Part 3—Worldwide capital amount Income Tax Assessment Act 1997 14 Subsection 820‑320(2) (method statement, steps 2 and 3) Repeal the steps, substitute: Step 3. Multiply the result of step 1 by the entity's worldwide group capital ratio for that year (see subsection (3)). Part 4—Safe harbour capital amount Income Tax Assessment Act 1997 15 Subsection 820‑310(1) (method statement, step 2) Omit "4%", substitute "6%". 16 Section 820‑405 (method statement, step 2) Omit "4%", substitute "6%". 17 Subsection 820‑615(3) (method statement, step 2) Omit "4%", substitute "6%". Part 5—De minimis threshold Income Tax Assessment Act 1997 18 Section 820‑35 Repeal the section, substitute: 820‑35 Application—$2 million threshold Subdivision 820‑B, 820‑C, 820‑D or 820‑E does not apply to disallow any *debt deduction of an entity for an income year if the total debt deductions of that entity and all its *associate entities for that year are $2 million or less. Part 6—Worldwide gearing debt amount for inward investing entities (non‑ADI) Income Tax Assessment Act 1997 19 Section 820‑190 Repeal the section, substitute: 820‑190 Maximum allowable debt (1) The entity's maximum allowable debt for an income year is the greatest of the following amounts: (a) the *safe harbour debt amount; (b) the *arm's length debt amount; (c) unless subsection (2) applies to the entity—the *worldwide gearing debt amount. Note 1: The safe harbour debt amount differs depending on whether the entity is an inward investment vehicle (general), inward investment vehicle (financial), inward investor (general) or inward investor (financial), see sections 820‑195 to 820‑215. Note 2: The worldwide gearing debt amount differs depending on whether the entity is an inward investment vehicle (general), inward investment vehicle (financial), inward investor (general) or an inward investor (financial), see sections 820‑216 to 820‑219. Entities that are not eligible for the worldwide gearing debt amount (2) This subsection applies to an entity, if: (a) the entity has *statement worldwide equity, or *statement worldwide assets, of nil or a negative amount; or (b) *audited consolidated financial statements for the entity for the income year do not exist; or (c) the result of applying the following formula is greater than 0.5: where: average Australian assets: (a) of an *Australian entity—is the average value, for the statement period mentioned in subsection (3), of all the assets of the entity, other than: (i) any *debt interests held by the entity, to the extent to which any value of the interests is all or a part of the *controlled foreign entity debt of the entity; or (ii) any *equity interests or debt interests held by the entity, to the extent to which any value of the interests is all or a part of the *controlled foreign entity equity of the entity; and (b) of a *foreign entity—is the average value, for the statement period mentioned in subsection (3), of all the assets of the entity that are: (i) located in Australia; or (ii) attributable to the entity's *Australian permanent establishments; or (iii) debt interests held by the entity, that were *issued by an *Australian entity and are *on issue; (iv) equity interests held by the entity in an *Australian entity. (3) For the purposes of the definition of average Australian assets in subsection (2) the statement period is the period for which the *audited consolidated financial statements for the entity for the income year have been prepared. (4) For the purposes of the formula in paragraph (2)(c), if: (a) an amount is included in *statement worldwide assets in respect of an asset; and (b) the asset was acquired, held or otherwise dealt with by an entity for a purpose (other than an incidental purpose) that included ensuring that subsection (2) does not apply to an entity; and (c) as a result of the acquisition, holding or dealing with of the asset, the amount included in statement worldwide assets exceeds the amount (including nil) that would otherwise be so included; apply the amount of the excess to reduce statement worldwide assets (or statement worldwide assets as reduced by a previous application of this subsection). 20 After section 820‑215 Insert: 820‑216 Worldwide gearing debt amount—inward investment vehicle (general) If the entity is an *inward investment vehicle (general) for the income year, and is not also an *outward investor (general) for all or any part of that year, the worldwide gearing debt amount is the result of applying the method statement in this section. Method statement Step 1. Divide the entity's *statement worldwide debt for the income year by the entity's *statement worldwide equity for that year. Step 2. Add 1 to the result of step 1. Step 3. Divide the result of step 1 by the result of step 2. Step 4. Multiply the result of step 3 in this method statement by the result of step 4 in the method statement in section 820‑195. Step 5. Add to the result of step 4 the average value, for that year, of the entity's *associate entity excess amount. The result of this step is the worldwide gearing debt amount. Example: SJP Limited, a company that is an Australian entity, has a worldwide parent entity in Japan. SJP Limited has statement worldwide debt of $120 million and statement worldwide equity of $40 million. The result of applying step 1 is therefore 3. Dividing 3 by 4 (through applying steps 2 and 3) and multiplying the result by $75 million (which is the result of step 4 of the method statement in section 820‑195) equals $56.25 million. As the average value of the company's associate entity excess amount is $4 million, the worldwide gearing debt amount is therefore $60.25 million. 820‑217 Worldwide gearing debt amount—inward investment vehicle (financial) If the entity is an *inward investment vehicle (financial) for the income year, and is not also an *outward investor (financial) for all or any part of that year, the worldwide gearing debt amount is the result of applying the method statement in this section. Method statement Step 1. Divide the entity's *statement worldwide debt for the income year by the entity's *statement worldwide equity for that year. Step 2. Add 1 to the result of step 1. Step 3. Divide the result of step 1 by the result of step 2. Step 4. Multiply the result of step 3 in this method statement by the result of step 5 in the method statement in subsection 820‑200(2). Step 5. Add to the result of step 4 the average value, for that year, of the entity's *zero‑capital amount. Step 6. Add to the result of step 5 the average value, for that year, of the entity's *associate entity excess amount. The result of this step is the worldwide gearing debt amount. Example: RGR Limited, a company that is an Australian entity, has a worldwide parent entity in France. RGR Limited has statement worldwide debt of $90 million and statement worldwide equity of $30 million. The result of applying step 1 is therefore 3. Dividing 3 by 4 (through applying steps 2 and 3) and multiplying the result by $100 million (which is the result of step 5 of the method statement in subsection 820‑200(2)) equals $75 million. The zero capital amount is $5 million. Adding that amount to $75 million results in $80 million. As the company does not have any associate entity excess amount, the worldwide gearing debt amount is therefore $80 million. 820‑218 Worldwide gearing debt amount—inward investor (general) If the entity is an *inward investor (general) for the income year, the worldwide gearing debt amount is the result of applying the method statement in this section. Method statement Step 1. Divide the entity's *statement worldwide debt for the income year by the entity's *statement worldwide equity for that year. Step 2. Add 1 to the result of step 1. Step 3. Divide the result of step 1 by the result of step 2. Step 4. Multiply the result of step 3 in this method statement by the result of step 4 in the method statement in section 820‑205. Step 5. Add to the result of step 4 the average value, for that year, of the entity's *associate entity excess amount. The result of this step is the worldwide gearing debt amount. Example: MLO Limited, a company that is not an Australian entity, has investments in Australia. MLO Limited has statement worldwide debt of $120 million and statement worldwide equity of $40 million. The result of applying step 1 is therefore 3. Dividing 3 by 4 (through applying steps 2 and 3) and multiplying the result by $75 million (which is the result of step 4 of the method statement in section 820‑205) equals $56.25 million. As the average value of the company's associate entity excess amount is $4 million, the worldwide gearing debt amount is therefore $60.25 million. 820‑219 Worldwide gearing debt amount—inward investor (financial) If the entity is an *inward investor (financial) for the income year, the worldwide gearing debt amount is the result of applying the method statement in this section. Method statement Step 1. Divide the entity's *statement worldwide debt for the income year by the entity's *statement worldwide equity for that year. Step 2. Add 1 to the result of step 1. Step 3. Divide the result of step 1 by the result of step 2. Step 4. Multiply the result of step 3 in this method statement by the result of step 5 in the method statement in subsection 820‑210(2). Step 5. Add to the result of step 4 the average value, for that year, of the entity's *zero‑capital amount that has arisen because of the Australian investments mentioned in step 1 of the method statement in subsection 820‑210(2). Step 6. Add to the result of step 5 the average value, for that year, of the entity's *associate entity excess amount. The result of this step is the worldwide gearing debt amount. Example: MSR Limited, a company that is not an Australian entity, has investments in Australia. MSR Limited has statement worldwide debt of $90 million and statement worldwide equity of $30 million. The result of applying step 1 is therefore 3. Dividing 3 by 4 (through applying steps 2 and 3) and multiplying the result by $100 million (which is the result of step 5 of the method statement in subsection 820‑210(2)) equals $75 million. The zero‑capital amount is $5 million. Adding that amount to $75 million results in $80 million. As the company does not have any associate entity excess amount, the worldwide gearing debt amount is therefore $80 million. 21 After Subdivision 820‑J Insert: Subdivision 820‑JA—Worldwide debt and equity concepts Guide to Subdivision 820‑JA 820‑931 What this Subdivision is about This Subdivision provides for the meanings of worldwide debt, worldwide equity, statement worldwide debt, statement worldwide equity and statement worldwide assets. Table of sections Operative provisions 820‑932 Worldwide debt and worldwide equity 820‑933 Statement worldwide debt, statement worldwide equity and statement worldwide assets 820‑935 Requirements for audited consolidated financial statements Operative provisions 820‑932 Worldwide debt and worldwide equity Worldwide debt (1) An entity's worldwide debt at a particular time, means the total of the following amounts: (a) all the *debt interests issued by the entity: (i) to entities other than any *Australian controlled foreign entities (the controlled entities) of which the entity is an *Australian controller at that time; and (ii) that are still *on issue at that time; (b) all the debt interests issued by the controlled entities: (i) to entities other than the entity or other controlled entities; and (ii) that are still on issue at that time. Worldwide equity (2) An entity's worldwide equity at a particular time, means the total of the following amounts: (a) all the *equity capital of the entity as at that time, but worked out disregarding *equity interests in the entity held at that time by *Australian controlled foreign entities (the controlled entities) of which the entity is an *Australian controller at that time; (b) all the equity capital of the controlled entities as at that time, but worked out disregarding equity interests in the controlled entities held at that time by: (i) the entity; or (ii) other controlled entities. 820‑933 Statement worldwide debt, statement worldwide equity and statement worldwide assets Statement worldwide debt (1) An entity's statement worldwide debt for a period is the amount (see subsection (4)) of liabilities for the entity for the period, reduced (but not below zero) by the sum of the following amounts (see subsection (4)) for the entity for the period: (a) provisions; (b) liabilities in relation to distributions to equity participants; (c) trade payables; (d) deferred tax liabilities; (e) liabilities relating to employee benefits; (f) current tax liabilities; (g) deferred revenue; (h) liabilities relating to insurance; (i) any other amount specified in a legislative instrument under subsection (5). Statement worldwide equity (2) An entity's statement worldwide equity for a period means the amount (see subsection (4)) of net assets for the entity for the period. Statement worldwide assets (3) An entity's statement worldwide assets for a period means the amount (see subsection (4)) of assets for the entity for the period. Amounts from audited consolidated financial statements to be used (4) For the purposes of this section: (a) an amount for an entity for a period is taken to be that amount as shown in the *audited consolidated financial statements for the entity for the period; and (b) sections 820‑680, 820‑682, 820‑683 and 820‑684 do not apply. Other amounts (5) The Minister may, by legislative instrument, specify one or more amounts for the purposes of paragraph (1)(i). 820‑935 Meaning of audited consolidated financial statements (1) Audited consolidated financial statements for an entity for a period are: (a) the financial statements that meet the requirements in subsection (2) for the entity for the period; or (b) if more than one set of financial statements meet the requirements in subsection (2) for the entity for the period—whichever of those sets of financial statements the entity chooses. (2) Financial statements meet the requirements in this subsection for an entity for a period (the relevant period) if: (a) the statements have been prepared on a consolidated basis in relation to the entity and one or more other entities in accordance with standards covered by subsection (3) or (4) (the recognised overseas accounting standards); and (b) one of the entities is a worldwide parent entity mentioned in subsection (6); and (c) the statements show the amounts mentioned in subsections 820‑933(1), (2) and (3) (however described) on that consolidated basis and in accordance with those standards; and (d) the statements have been audited (and the auditor's report is unqualified) in accordance with a requirement in the law of: (i) a foreign jurisdiction mentioned in subsection (3) of this section; or (ii) another jurisdiction that has adopted the standards mentioned in subsection (4); and (e) the statements are for the most recent period ending: (i) no later than the end of the relevant period; and (ii) no earlier than 12 months before the start of the relevant period. Recognised overseas accounting standards (3) This subsection covers the standards (however described) that apply to the preparation of financial statements and are made, or adopted, by the responsible body in any of the following (a foreign jurisdiction): (a) the European Union; (b) the United States of America; (c) Canada; (d) Japan; (e) New Zealand; (f) a jurisdiction specified in an instrument under subsection (5). (4) This subsection covers the international financial reporting standards that are made or adopted by the International Accounting Standards Board. (5) The Minister may, by legislative instrument, specify one or more jurisdictions for the purposes of paragraph (3)(f). Worldwide parent entity (6) For the purposes of paragraph (2)(b), an entity in relation to which financial statements have been prepared is a worldwide parent entity if, for the purposes of the standards in accordance with which the statements were prepared, the entity is not controlled by another entity. Part 7—Consequential amendments Income Tax Assessment Act 1997 22 Section 820‑10 (after table item 7) Insert: 7A Subdivision 820‑JA worldwide debt and equity concepts. 23 Subsection 820‑85 (note 1) Omit "$250,000", substitute "$2 million". 24 Section 820‑95 (example) Repeal the example, substitute: Example: AK Pty Ltd, a company that is an Australian entity, has an average value of assets (other than assets attributable to its overseas permanent establishments) of $100 million. The average values of its excluded equity interests, associate entity debt, associate entity equity, controlled foreign entity debt, controlled foreign entity equity and non‑debt liabilities are $5 million, $10 million, $8 million, $5 million, $2 million and $5 million respectively. Deducting these amounts from the result of step 1 (through applying steps 1A to 6) leaves $65 million. Multiplying $65 million by 3/5 results in $39 million. As the average value of the company's associate entity excess amount is $4.5 million, the safe harbour debt amount is therefore $43.5 million. 25 Subsection 820‑100(2) (example) Repeal the example, substitute: Example: GLM Limited, a company that is an Australian entity, has an average value of assets (other than assets attributable to its overseas permanent establishments) of $160 million. The average values of its relevant excluded equity interests, associate entity debt, associate entity equity, controlled foreign entity debt, controlled foreign entity equity, non‑debt liabilities and zero‑capital amount are $5 million, $5 million, $5 million, $9 million, $6 million, $5 million and $4 million respectively. Deducting these amounts from the result of step 1 (through applying steps 1A to 7) leaves $121 million. Multiplying $121 million by 15/16 results in $113.4375 million. Adding the average zero‑capital amount of $4 million results in $117.4375 million. As the company does not have any associate entity excess amount, the total debt amount is therefore $117.4375 million. 26 Subsection 820‑100(3) (method statement, step 7) Omit "3/4", substitute "3/5". 27 Subsection 820‑100(3) (example) Repeal the example, substitute: Example: GLM Limited, a company that is an Australian entity, has an average value of assets (other than assets attributable to its overseas permanent establishments) of $160 million. The average values of its relevant excluded equity interests, associate entity equity, controlled foreign entity debt, controlled foreign entity equity, non‑debt liabilities and on‑lent amount are $5 million, $5 million, $9 million, $6 million, $5 million and $35 million respectively. Deducting these amounts from the result of step 1 (through applying steps 1A to 6) leaves $95 million. Multiplying $95 million by 3/5 results in $57 million. Adding the average on‑lent amount of $35 million results in $92 million. Reducing the result of step 8 by the associate entity debt amount of $5 million equals $87 million. As the company does not have any associate entity excess amount, the adjusted on‑lent amount is therefore $87 million. 28 Subsection 820‑110(1) (heading) Repeal the heading, substitute: Outward investor (general) that is not also an inward investment vehicle (general) 29 Subsection 820‑110(1) After "the income year,", insert "and not also an *inward investment vehicle (general) for all or any part of that year,". 30 Subsection 820‑110(1) (example) Repeal the example, substitute: Example: AK Pty Ltd, a company that is an Australian entity, has an average value of worldwide debt of $90 million and an average value of worldwide equity of $30 million. The result of applying step 1 is therefore 3. Dividing 3 by 4 (through applying steps 3 and 4) and multiplying the result by $65 million (which is the result of step 6 in the method statement in section 820‑95) equals $48.75 million. As the average value of the company's associate entity excess amount is $4.5 million, the worldwide gearing debt amount is therefore $53.25 million. 31 Subsection 820‑110(2) (heading) Repeal the heading, substitute: Outward investor (financial) that is not also an inward investment vehicle (financial) 32 Subsection 820‑110(2) After "that year,", insert "and not also an *inward investment vehicle (financial) for all or any part of that year,". 33 Subsection 820‑110(2) (example) Repeal the example, substitute: Example: GLM Limited, a company that is an Australian entity, has an average value of worldwide debt of $120 million and an average value of worldwide equity of $40 million. The result of applying step 1 is therefore 3. Dividing 3 by 4 (through applying steps 3 and 4) and multiplying the result by $121 million (which is the result of step 7 of the method statement in subsection 820‑100(2)) equals $90.75 million. The average value of zero‑capital amount (see step 7 of the method statement in subsection 820‑100(2)) is $4 million. Adding that amount to $90.75 million results in $94.75 million. As the company does not have any associate entity excess amount, the worldwide gearing debt amount is therefore $94.75 million. 34 Subsection 820‑185 (note 1) Omit "$250,000", substitute "$2 million". 35 Section 820‑195 (example) Repeal the example, substitute: Example: ALWZ Ltd, a company that is an Australian entity, has an average value of assets of $100 million. The average values of its excluded equity interests, associate entity debt, associate entity equity and non‑debt liabilities are $5 million, $10 million, $5 million and $5 million respectively. Deducting these amounts from the result of step 1 (through applying steps 1A to 4) leaves $75 million. Multiplying $75 million by 3/5 results in $45 million. As the average value of the company's associate entity excess amount is $2 million, the safe harbour debt amount is therefore $47 million. 36 Subsection 820‑200(2) (example) Repeal the example, substitute: Example: KJW Finance Pty Ltd, a company that is an Australian entity, has an average value of assets of $120 million. The average values of its excluded equity interests, associate entity debt, associate entity equity, its non‑debt liabilities and its zero‑capital amount are $5 million, $5 million, $3 million, $2 million and $5 million respectively. Deducting these amounts from the result of step 1 (through applying steps 1A to 5) leaves $100 million. Multiplying $100 million by 15/16 results in $93.75 million. Adding the zero‑capital amount of $5 million to $93.75 million results in $98.75 million. As the company does not have any associate entity excess amount, the total debt amount is therefore $98.75 million. 37 Subsection 820‑200(3) (method statement, step 5) Omit "3/4", substitute "3/5". 38 Subsection 820‑200(3) (example) Repeal the example, substitute: Example: KJW Finance Pty Ltd, a company that is an Australian entity, has an average value of assets of $120 million. The average values of its excluded equity interests, associate entity equity, non‑debt liabilities and on‑lent amount are $5 million, $3 million, $2 million and $35 million respectively. Deducting these amounts from the result of step 1 (through applying steps 1A to 4) leaves $75 million. Multiplying $75 million by 3/5 results in $45 million. Adding the average on‑lent amount of $35 million results in $80 million. Reducing $80 million by the associate entity debt amount of $5 million results in $75 million. As the company does not have any associate entity excess amount, the adjusted on‑lent amount is therefore $75 million. 39 Section 820‑205 (example) Repeal the example, substitute: Example: RJ Corporation is a company that is not an Australian entity. The average value of its Australian investments is $100 million. The average value of its relevant excluded equity interests, associate entity debt, associate entity equity and non‑debt liabilities is $5 million, $10 million, $5 million and $5 million respectively. Deducting those amounts from the result of step 1 leaves $75 million. Multiplying $75 million by 3/5 results in $45 million. As the company does not have any associate entity excess amount, the safe harbour debt amount is therefore $45 million. 40 Subsection 820‑210(2) (example) Repeal the example, substitute: Example: FXS Financial SA is a company that is not an Australian entity. The average value of its Australian investments is $120 million. The average value of its relevant excluded equity interests, associate entity debt, associate entity equity, non‑debt liabilities and zero‑capital amount are $5 million, $5 million, $2 million, $3 million and $5 million respectively. Deducting those amounts from the result of step 1 (through applying steps 1A to 5) leaves $100 million. Multiplying $100 million by 15/16 results in $93.75 million. Adding the average zero‑capital amount of $5 million results in $98.75 million. As the company does not have any associate entity excess amount, the total debt amount is therefore $98.75 million. 41 Subsection 820‑210(3) (method statement, step 5) Omit "3/4", substitute "3/5". 42 Subsection 820‑210(3) (example) Repeal the example, substitute: Example: FXS Financial SA is a company that is not an Australian entity. The average value of its Australian investments is $120 million. The average value of its relevant excluded equity interests, associate entity equity, non‑debt liabilities and on‑lent amount are $5 million, $2 million, $3 million and $35 million respectively. Deducting those amounts from the result of step 1 (through applying steps 1A to 4) leaves $75 million. Multiplying $75 million by 3/5 results in $45 million. Adding the average on‑lent amount of $35 million results in $80 million. Reducing the result of step 6 by the associate entity debt amount of $5 million results in $75 million. As the company does not have any associate entity excess amount, the adjusted on‑lent amount is therefore $75 million. 43 Subsection 820‑300(1) (note 1) Omit "$250,000", substitute "$2 million". 44 Subsection 820‑310(1) (example) Repeal the example, substitute: Example: The Southern Cross Bank is an Australian bank that carries on its banking business through its overseas permanent establishments and through foreign entities that it controls. For the income year, its average value of risk‑weighted assets and intangible assets comprising capitalised software expenses is $150 million (having discounted those assets that are excluded by step 1) and the average value of its relevant tier 1 prudential capital deductions is $2 million. Multiplying $150 million by 6% equals $9 million, which is the result of step 2. Adding $2 million to $9 million equals $11 million, which is the safe harbour capital amount. 45 Subsection 820‑320(2) (example) Repeal the example, substitute: Example: Southern Cross Bank has an average value of risk‑weighted assets of $150 million (having discounted those risk‑weighted assets that are excluded by step 1) and the average value of its relevant tier 1 prudential capital deductions is $2 million. The entity's worldwide group capital ratio is 0.0875. Multiplying $150 million by 0.0875 equals $13.125 million, which is the result of step 3. Adding that amount to the average value of the relevant tier 1 prudential capital deductions equals $15.125 million, which is the worldwide capital amount. 46 Subsection 820‑395(1) (note 1) Omit "$250,000", substitute "$2 million". 47 Section 820‑405 (example) Repeal the example, substitute: Example: The Global Bank is a foreign bank that carries on its banking business in Australia through a permanent establishment. The average value of its relevant risk‑weighted assets is $140 million. Multiplying that amount by 6% results in $8.4 million, which is the safe harbour capital amount. 48 Paragraph 820‑910(2)(b) Omit "$250,000", substitute "$2 million". 49 Subsection 820‑920(3) (method statement, step 4, paragraph (a)) Omit "20/21", substitute "15/16". 50 Subsection 820‑920(3) (method statement, step 4, paragraphs (b) and (c)) Omit "3/4", substitute "3/5". 51 Paragraph 820‑946(1)(c) Omit "$250,000", substitute "$2 million". 52 Subsection 995‑1(1) Insert: audited consolidated financial statements for an entity for a period has the meaning given by section 820‑935. statement worldwide assets of an entity for a period has the meaning given by subsection 820‑933(3). statement worldwide debt of an entity for a period has the meaning given by subsection 820‑933(1). statement worldwide equity of an entity for a period has the meaning given by subsection 820‑933(2). 53 Subsection 995‑1(1) (definition of worldwide debt) Repeal the definition, substitute: worldwide debt of an entity and at a particular time has the meaning given by subsection 820‑932(1). 54 Subsection 995‑1(1) (definition of worldwide equity) Repeal the definition, substitute: worldwide equity of an entity and at a particular time has the meaning given by subsection 820‑932(2). 55 Subsection 995‑1(1) (definition of worldwide gearing debt amount) Repeal the definition, substitute: worldwide gearing debt amount: (a) for an *outward investing entity (non‑ADI)—has the meaning given by sections 820‑110 and 820‑111; and (b) for an inward investment vehicle (general)—has the meaning given by section 820‑216; and (c) for an inward investment vehicle (financial)—has the meaning given by section 820‑217; and (d) for an *inward investor (general)—has the meaning given by section 820‑218; and (e) for an *inward investor (financial)—has the meaning given by section 820‑219. Part 8—Application 56 Application The amendments made by this Schedule apply to assessments for income years starting on or after 1 July 2014. Schedule 2—Foreign dividends Part 1—Foreign equity distributions on participation interests Income Tax Assessment Act 1936 1 Section 23AJ Repeal the section. Income Tax Assessment Act 1997 2 Paragraph 25‑90(b) Repeal the paragraph, substitute: (b) the income is *non‑assessable non‑exempt income under section 768‑5, or section 23AI or 23AK of the Income Tax Assessment Act 1936; and 3 Division 768 (heading) Repeal the heading, substitute: Division 768—Foreign non‑assessable income and gains 4 Before Subdivision 768‑B Insert: Subdivision 768‑A—Returns on foreign investment Guide to Subdivision 768‑A 768‑1 What this Subdivision is about If: (a) an Australian corporate tax entity receives a foreign equity distribution from a foreign company, either directly or indirectly through one or more interposed trusts or partnerships; and (b) the Australian corporate tax entity holds a participation interest of at least 10% in the foreign company; the distribution is non‑assessable non‑exempt income for the Australian corporate tax entity. Table of sections Foreign equity distributions on participation interests 768‑5 Foreign equity distributions on participation interests 768‑10 Meaning of foreign equity distribution 768‑15 Participation test—minimum 10% participation Foreign equity distributions on participation interests 768‑5 Foreign equity distributions on participation interests Foreign equity distributions received directly (1) A *foreign equity distribution is not assessable income, and is not *exempt income, of the entity to which it is made if: (a) the entity is an Australian resident and a *corporate tax entity; and (b) at the time the distribution is made, the entity satisfies the participation test in section 768‑15 in relation to the company that made the distribution; and (c) the entity: (i) does not receive the distribution in the capacity of a trustee; or (ii) receives the distribution in the capacity of a trustee of a *corporate unit trust or *public trading trust. Foreign equity distributions received through interposed trusts and partnerships (2) An amount is not assessable income, and is not *exempt income, of an entity if: (a) the entity is a beneficiary of a trust or a partner in a partnership, an Australian resident and a *corporate tax entity; and (b) the amount is all or part of the net income of the trust or partnership that would, apart from this subsection, be included in the entity's assessable income because of Division 5 or 6 of Part III of the Income Tax Assessment Act 1936; and (c) the amount can be attributed (either directly or indirectly through one or more interposed trusts or partnerships that are not *corporate tax entities) to a *foreign equity distribution; and (d) at the time the distribution is made, the entity satisfies the participation test in section 768‑15 in relation to the company that made the distribution; and (e) the entity: (i) does not receive the distribution in the capacity of a trustee; or (ii) receives the distribution in the capacity of a trustee of a *corporate unit trust or *public trading trust. (3) An amount that is *non‑assessable non‑exempt income under subsection (2) is taken, for the purpose of section 25‑90 (about deductions relating to foreign non‑assessable non‑exempt income) to be derived from the same source as the *foreign equity distribution. 768‑10 Meaning of foreign equity distribution A foreign equity distribution is a *distribution or *non‑share dividend made by a company that is a foreign resident in respect of an *equity interest in the company. 768‑15 Participation test—minimum 10% participation An entity satisfies the participation test in this section in relation to another entity at a time if, at that time, the sum of the following is at least 10%: (a) the *direct participation interest the entity would have in the other entity if rights on winding‑up were disregarded; (b) the *indirect participation interest the entity would have in the other entity if: (i) rights on winding‑up were disregarded; and (ii) section 960‑185 only applied to intermediate entities that are not *corporate tax entities. 5 Subsection 995‑1(1) Insert: foreign equity distribution has the meaning given by section 768‑10. Part 2—Repeal of portfolio dividend exemption for CFCs Income Tax Assessment Act 1936 6 Section 404 Repeal the section, substitute: 404 Application of Subdivision 768‑A of the Income Tax Assessment Act 1997 For the purpose of applying Subdivision 768‑A of the Income Tax Assessment Act 1997 (about returns on foreign investment) in calculating the attributable income of the eligible CFC, disregard section 389A of this Act (which is about disregarding Division 974 of the Income Tax Assessment Act 1997 and certain other provisions). Part 3—Consequential amendments Income Tax Assessment Act 1936 7 Subsection 44(1) (note 1) Repeal the note, substitute: Note 1: Some other provisions that expressly deal with dividends are sections 23AI, 23AK and 128D of this Act and section 768‑5 of the Income Tax Assessment Act 1997. 8 Subparagraph 47A(2)(a)(ii) Omit "section 23AI or 23AJ", substitute "section 23AI or section 768‑5 of the Income Tax Assessment Act 1997". 9 Paragraph 47A(7)(b) Omit "section 23AJ", substitute "section 768‑5 of the Income Tax Assessment Act 1997". 10 Subsection 320(1) (definition of section 404 country) Repeal the definition. 11 Section 332A Repeal the section. 12 Subsection 399(2) (definition of excluded modifications) Omit "404 and". Income Tax Assessment Act 1997 13 Section 11‑15 (note) Omit "sections 403 and 404", substitute "section 403". 14 Section 11‑55 (table item headed "foreign aspects of income taxation") Omit: dividend from a foreign country, non‑portfolio. 23AJ 15 Section 11‑55 (table item headed "foreign aspects of income taxation") After: distributions of conduit foreign income............ 802‑20 insert: foreign equity distributions on participation interests... 768‑5 16 After subparagraph 118‑12(2)(a)(via) Insert: (vib) section 768‑5 (foreign equity distributions on participation interests); 17 Subparagraph 118‑12(2)(b)(iii) Repeal the subparagraph. 18 Subsection 118‑20(6) Omit "section 23AJ (about exempting certain non‑portfolio dividends paid by non‑resident companies) of the Income Tax Assessment Act 1936 because a company pays a *dividend to you", substitute "section 768‑5 (about foreign equity distributions on participation interests) because a company makes a *foreign equity distribution". 19 Paragraph 220‑350(1)(c) Omit "section 23AI, 23AJ or 23AK of the Income Tax Assessment Act 1936", substitute "section 768‑5, or section 23AI or 23AK of the Income Tax Assessment Act 1936". 20 Paragraph 230‑15(3)(c) Repeal the paragraph, substitute: (c) the income is *non‑assessable non‑exempt income under section 768‑5, or section 23AI or 23AK of the Income Tax Assessment Act 1936; and 21 Paragraphs 230‑335(4)(a) and (b) Repeal the paragraphs, substitute: (a) the *financial arrangement hedges a foreign currency risk in relation to an anticipated *foreign equity distribution from a *connected entity; and (b) the distribution is *non‑assessable non‑exempt income under section 768‑5. 22 Paragraph 802‑30(3)(c) Omit "section 23AJ of the Income Tax Assessment Act 1936", substitute "section 768‑5". Part 4—Application 23 Application The amendments made by this Schedule apply to distributions and non‑share dividends made after the day the Tax and Superannuation Laws Amendment (2014 Measures No. 4) Act 2014 receives the Royal Assent. Schedule 3—Foreign resident CGT integrity measures Part 1—Duplicated assets of corporate groups Income Tax Assessment Act 1997 1 After subsection 855‑30(2) Insert: Note: The market value of any of the latter kind of assets that are duplicated within the test entity's corporate group could be disregarded (see section 855‑32). 2 Subsection 855‑30(4) (note) Omit "Note", substitute "Note 1". 3 At the end of subsection 855‑30(4) Add: Note 2: The market value of an asset of the other entity that is not taxable Australian real property, and is duplicated within the other entity's corporate group, could be disregarded (see section 855‑32). 4 After section 855‑30 Insert: 855‑32 Disregard market value of duplicated non‑TARP assets (1) The purpose of this section is to prevent double counting of the *market value of the assets of a corporate group that: (a) are not *taxable Australian real property; and (b) are created under *arrangements under which corresponding liabilities are created in other members of the group. (2) For the purposes of subsections 855‑30(2) and (4), subsection (4) of this section applies to an asset that is not *taxable Australian real property if: (a) the parties to an *arrangement included the 2 entities referred to in subsection (3); and (b) an effect of the arrangement was to create, before the *CGT event happened: (i) the asset as an asset of one of those 2 parties; and (ii) a corresponding liability of the other (the other party). (3) The 2 entities are either: (a) the first entity and the other entity (see subsection 855‑30(3)), if table item 2 in subsection 855‑30(4) applies to those entities; or (b) both: (i) that first entity or that other entity; and (ii) an entity that is a first entity or other entity for the purposes of a related application of subsection 855‑30(3) and table item 2 in subsection 855‑30(4). (4) Disregard: (a) if the other party is the test entity (see subsection 855‑30(2))—the asset's *market value; or (b) otherwise—the percentage of the asset's market value equal to the percentage that is the test entity's *total participation interest in the other party. Example: The test entity loans money to its wholly‑owned subsidiary. The market value of the loan asset created as an asset of the test entity is disregarded for the purposes of subsection 855‑30(2). 5 Application of amendment Section 855‑32 of the Income Tax Assessment Act 1997 (as inserted by this Part) applies in relation to a CGT event if: (a) in a case where the 2 entities that are parties to the arrangement were members of the same consolidated group or MEC group at the time the asset was created—the CGT event happens after 7.30 pm, by legal time in the Australian Capital Territory, on 14 May 2013; and (b) otherwise—the CGT event happens on or after 13 May 2014. Part 2—Assets used by permanent establishments Income Tax Assessment Act 1997 6 Section 855‑15 (cell at table item 3, column headed "Description") Repeal the cell, substitute: A *CGT asset that: (a) you have used at any time in carrying on a *business through: (i) if you are a resident in a country that has entered into an *international tax agreement with Australia containing a *permanent establishment article—a permanent establishment (within the meaning of the relevant international tax agreement) in Australia; or (ii) otherwise—a *permanent establishment in Australia; and (b) is not covered by item 1, 2 or 5 of this table 7 After section 855‑15 Insert: 855‑16 Meaning of permanent establishment article A permanent establishment article is: (a) Article 5 of the United Kingdom convention (within the meaning of the International Tax Agreements Act 1953); or (b) a corresponding provision of another *international tax agreement. 8 Subsection 855‑35(1) Omit "(within the meaning of section 23AH of the Income Tax Assessment Act 1936)", substitute "(as mentioned in that item)". 9 Subsection 995‑1(1) Insert: permanent establishment article has the meaning given by section 855‑16. 10 Application of amendments The amendments made by this Part apply to CGT events happening on or after the commencement of item 112 of Schedule 4 to the Tax Laws Amendment (2006 Measures No. 4) Act 2006. Schedule 4—Tax receipts Income Tax Assessment Act 1997 1 Subsection 995‑1(1) Insert: tax receipt means a receipt given to you under subsection 70‑5(1) of Schedule 1 to the Taxation Administration Act 1953. Taxation Administration Act 1953 2 After Part 2‑10 in Schedule 1 Insert: Part 2‑15—Returns and assessments Division 70—Tax receipts Table of Subdivisions Guide to Division 70 70‑A Tax receipts Guide to Division 70 70‑1 What this Division is about The Commissioner must provide you with a tax receipt for an income year if you are an individual taxpayer and the total tax assessed to you for the income year is $100 or more (or such other amount as determined by the Commissioner from time to time). The tax receipt must include information about how the total tax assessed to you for the income year is notionally used to finance different categories of Commonwealth government expenditure. The tax receipt must also include information about the total amount of Commonwealth government debt, for the current and previous financial years, and the expected total amount of interest to be paid on that debt during the current financial year. Subdivision 70‑A—Tax receipts Table of sections 70‑5 Tax receipt to be provided to certain individual taxpayers 70‑5 Tax receipt to be provided to certain individual taxpayers (1) The Commissioner must give you a *tax receipt in respect of an income year if: (a) the Commissioner is required to give you a notice of assessment in respect of the income year and has not previously given you a notice in respect of the income year; and (b) you are an individual; and (c) the amount of income tax you owe (as worked out under step 4 of subsection 4‑10(3) of the Income Tax Assessment Act 1997) for the *financial year that corresponds to the income year is equal to or greater than: (i) if subparagraph (ii) does not apply—$100; or (ii) if the Commissioner has made a determination under subsection (2)—the amount specified in the determination; and (d) the notice is given to you within the period of 18 months after the end of the income year. (2) The Commissioner may, by legislative instrument, make a determination that specifies an amount for the purposes of subparagraph (1)(c)(ii). (3) The *tax receipt must include the following information: (a) your name; (b) the amount mentioned in paragraph (1)(c); (c) how the amount mentioned in paragraph (1)(c) is notionally used to finance different categories of Commonwealth government expenditure (other than expenditure that relates to amounts collected under the *GST law that are paid to the States and Territories); (d) an estimate of the total face value of Commonwealth stock and securities on issue at the end of the previous *financial year; (e) an estimate of the expected total face value of Commonwealth stock and securities on issue at the end of the financial year; (f) the expected total interest to be paid during the financial year in respect of the Commonwealth stock and securities referred to in paragraph (e). Note: The allocation of how the total tax assessed to you is spent is a notional calculation and may not represent how the tax assessed to you is actually spent. (4) For the purposes of determining the amounts in paragraphs (2)(d) to (f), the Commissioner must use the information in the budget economic and fiscal outlook report prepared for the purpose of section 10 of the Charter of Budget Honesty Act 1998 in respect of the *financial year referred to in paragraph (1)(c). (5) For the purposes of determining the form of the information to be included in the *tax receipt, the Commissioner must seek the advice of the Minister and take that advice into account. (6) The Commissioner must give you the *tax receipt as soon as practicable. 3 Application The amendments made by this Schedule apply to assessments for the 2014‑15 income year and later income years. Schedule 5—Miscellaneous amendments Part 1—References to specific Ministers, Departments and Secretaries Division 1—Main amendments A New Tax System (Goods and Services Tax) Act 1999 1 Paragraphs 79‑100(1)(b) and (c) Omit "Treasurer", substitute "Minister". 2 Subsection 79‑100(2) (heading)