Commonwealth: Tax Laws Amendment (2011 Measures No. 2) Act 2011 (Cth)

Tax Laws Amendment (2011 Measures No. 2) Act 2011 No. 41, 2011 as amended Compilation start date: 29 June 2013 Includes amendments up to: Act No. 124, 2013 About this compilation This compilation This is a compilation of the Tax Laws Amendment (2011 Measures No. 2) Act 2011 as in force on 29 June 2013. It includes any commenced amendment affecting the legislation to that date. This compilation was prepared on 20 September 2013. 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) Schedule 1—Deductible gift recipients Part 1—Amendments commencing on 1 January 2011 Income Tax Assessment Act 1997 Part 2—Amendments commencing on Royal Assent Income Tax Assessment Act 1997 Schedule 2—Self managed superannuation funds Superannuation Industry (Supervision) Act 1993 Schedule 3—Use of TFNs for superannuation purposes Part 1—Amendments commencing on 1 July 2011 Retirement Savings Accounts Act 1997 Superannuation Industry (Supervision) Act 1993 Part 2—Amendments commencing on Proclamation Retirement Savings Accounts Act 1997 Superannuation Industry (Supervision) Act 1993 Schedule 4—GST: payments of taxes, fees and charges A New Tax System (Goods and Services Tax) Act 1999 A New Tax System (Luxury Car Tax) Act 1999 Schedule 5—Other amendments Part 1—A New Tax System (Goods and Services Tax) Act 1999 Part 2—Approved worker entitlement funds Fringe Benefits Tax Assessment Act 1986 Income Tax Assessment Act 1997 Taxation Administration Act 1953 Part 3—Confidentiality of taxpayer Information Division 1—Main amendments Income Tax Assessment Act 1936 Income Tax Assessment Act 1997 Taxation Administration Act 1953 Division 2—Amendment contingent on the Human Services Legislation Amendment Act 2011 Taxation Administration Act 1953 Part 4—Employee share schemes Division 1—Income Tax Assessment Act 1997 Division 2—Income Tax (Transitional Provisions) Act 1997 Division 3—Minor amendment Income Tax Assessment Act 1997 Part 5—General interest charge Taxation Administration Act 1953 Part 6—Deductible gift recipients Division 1—Amendments commencing on Royal Assent Income Tax Assessment Act 1997 Division 2—Amendments commencing on 1 July 2011 Income Tax Assessment Act 1997 Division 3—Other amendment Tax Laws Amendment (Repeal of Inoperative Provisions) Act 2006 Part 7—Section 23AB of the Income Tax Assessment Act 1936 Income Tax Assessment Act 1936 Part 8—Definitions and signposts to related material Income Tax Assessment Act 1936 Part 9—Repeal of redundant reference to Papua New Guinea Income Tax Assessment Act 1936 Part 10—Repeal of redundant references to franking Income Tax Assessment Act 1936 Part 11—Correction of cross‑reference in provision about dividend streaming etc. Income Tax Assessment Act 1936 Part 12—Minor changes to provisions about concessional rebates Income Tax Assessment Act 1936 Part 13—Fixing outdated references to Medicare levy Income Tax Assessment Act 1997 Part 14—Repeal of references to previously repealed provisions Income Tax Assessment Act 1997 Part 15—Correction of asterisking of reference to tax debts Income Tax Assessment Act 1997 Part 16—Repeal of outdated provisions about exemption from income tax Income Tax Assessment Act 1936 Income Tax Assessment Act 1997 Part 17—Correction of asterisking of references to quarter Income Tax Assessment Act 1997 Part 18—Inclusion of Commissioner's discretion to extend main residence exemption from CGT Income Tax Assessment Act 1997 Part 19—Nomination of controllers of discretionary trust Income Tax Assessment Act 1997 Part 20—Definitions mainly relevant to Subdivision 165‑F of the Income Tax Assessment Act 1997 Income Tax Assessment Act 1997 Taxation Administration Act 1953 Part 21—Removal of definition from imputation provisions Income Tax Assessment Act 1997 Part 22—Correction of outdated references to virtual PST assets Income Tax Assessment Act 1997 Part 23—Repeal of spent provisions about land transport facilities borrowings Income Tax Assessment Act 1997 Part 24—Prevention of double counting for direct value shifts Income Tax Assessment Act 1997 Part 25—Ineligible income tax remission decisions Taxation Administration Act 1953 Part 26—Correction of references to chains of fixed trusts Income Tax Assessment Act 1997 Part 27—Gender‑specific language Income Tax Assessment Act 1936 Part 28—Misdescribed amendments Tax Laws Amendment (2010 Measures No. 1) Act 2010 Tax Laws Amendment (Transfer of Provisions) Act 2010 Part 29—References to Schedules Family Trust Distribution Tax (Primary Liability) Act 1998 Family Trust Distribution Tax (Secondary Liability) Act 1998 Fringe Benefits Tax Assessment Act 1986 Income Tax Assessment Act 1936 Income Tax Assessment Act 1997 Income Tax (Transitional Provisions) Act 1997 Medicare Levy Act 1986 Superannuation Contributions Tax (Assessment and Collection) Act 1997 Part 30—References to taxation laws Income Tax Assessment Act 1997 Taxation Administration Act 1953 Part 31—Other amendments Income Tax Assessment Act 1936 Income Tax Assessment Act 1997 Income Tax (Transitional Provisions) Act 1997 Superannuation Legislation Amendment Act 2010 Taxation Administration Act 1953 Taxation (Interest on Overpayments and Early Payments) Act 1983 Tax Laws Amendment (2007 Measures No. 5) Act 2007 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 Laws Amendment (2011 Measures No. 2) Act 2011. 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. 27 June 2011 2. Schedule 1, Part 1 1 January 2011. 1 January 2011 3. Schedule 1, Part 2 The day this Act receives the Royal Assent. 27 June 2011 4. Schedule 1, Part 3 1 July 2016. 1 July 2016 5. Schedule 2 1 July 2011. 1 July 2011 6. Schedule 3, Part 1 1 July 2011. 1 July 2011 7. Schedule 3, Part 2 The later of: 1 January 2012 (a) immediately after the commencement of the provision(s) covered by table item 6; and (b) the start of a single day to be fixed by Proclamation. However, if any of the provision(s) do not commence before 1 January 2012, they commence on that day. 8. Schedule 4 The day this Act receives the Royal Assent. 27 June 2011 9. Schedule 5, Part 1 The day this Act receives the Royal Assent. 27 June 2011 10. Schedule 5, Part 2 The day after this Act receives the Royal Assent. 28 June 2011 11. Schedule 5, Part 3, Division 1 The day after this Act receives the Royal Assent. 28 June 2011 12. Schedule 5, Part 3, Division 2 The later of: 1 July 2011 (paragraph (b) applies) (a) immediately after the start of the day after this Act receives the Royal Assent; and (b) the commencement of Schedule 2 to the Human Services Legislation Amendment Act 2011. However, the provision(s) do not commence at all if the event mentioned in paragraph (b) does not occur. 13. Schedule 5, Parts 4 and 5 The day this Act receives the Royal Assent. 27 June 2011 14. Schedule 5, Part 6, Division 1 The day this Act receives the Royal Assent. 27 June 2011 15. Schedule 5, Part 6, Division 2 The later of: 1 July 2011 (paragraph (b) applies) (a) the day this Act receives the Royal Assent; and (b) 1 July 2011. 16. Schedule 5, Part 6, Division 3 Immediately after the commencement of item 15 of Schedule 3 to the Tax Laws Amendment (Repeal of Inoperative Provisions) Act 2006. 1 January 2008 17. Schedule 5, Parts 7 to 27 The day this Act receives the Royal Assent. 27 June 2011 18. Schedule 5, item 368 Immediately after the time specified in the Tax Laws Amendment (2010 Measures No. 1) Act 2010 for the commencement of item 105 of Schedule 5 to that Act. 3 June 2010 19. Schedule 5, item 369 Immediately after the time specified in the Tax Laws Amendment (2010 Measures No. 1) Act 2010 for the commencement of item 173 of Schedule 5 to that Act. 3 June 2010 20. Schedule 5, item 370 Immediately after the time specified in the Tax Laws Amendment (2010 Measures No. 1) Act 2010 for the commencement of item 201 of Schedule 5 to that Act. 3 June 2010 21. Schedule 5, item 371 Immediately after the time specified in the Tax Laws Amendment (2010 Measures No. 1) Act 2010 for the commencement of item 11 of Schedule 6 to that Act. 3 June 2010 22. Schedule 5, item 372 Immediately after the time specified in the Tax Laws Amendment (Transfer of Provisions) Act 2010 for the commencement of item 16 of Schedule 2 to that Act. 1 July 2010 23. Schedule 5, Parts 29 to 31 The day this Act receives the Royal Assent. 27 June 2011 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—Deductible gift recipients Part 1—Amendments commencing on 1 January 2011 Income Tax Assessment Act 1997 1 Section 30‑90 (cell at table item 10.2.2, column headed "Fund, authority or institution") Repeal the cell, substitute: Girl Guides Australia 2 Section 30‑90 (table item 10.2.3) Omit "Guides Australia Incorporated", substitute "Girl Guides Australia". 3 Section 30‑315 (cell at table item 53A, column without a heading) Repeal the cell, substitute: Girl Guides Australia Part 2—Amendments commencing on Royal Assent Income Tax Assessment Act 1997 4 Subsection 30‑25(2) (at the end of the table) Add: 2.2.39 The Charlie Perkins Scholarship Trust the gift must be made after 1 August 2010 and before 2 August 2013 2.2.40 Roberta Sykes Indigenous Education Foundation the gift must be made after 1 August 2010 and before 2 August 2013 5 Section 30‑315 (after table item 30AA) Insert: 30A Charlie Perkins Scholarship Trust item 2.2.39 6 Section 30‑315 (after table item 97) Insert: 97AA Roberta Sykes Indigenous Education Foundation item 2.2.40 Schedule 2—Self managed superannuation funds Superannuation Industry (Supervision) Act 1993 1 After section 62 Insert: 62A Self managed superannuation funds—investment in collectables and personal use assets The regulations may prescribe rules in relation to the trustees of regulated superannuation funds that are self managed superannuation funds making, holding and realising investments involving: (a) artwork (within the meaning of the Income Tax Assessment Act 1997); or (b) jewellery; or (c) antiques; or (d) artefacts; or (e) coins or medallions; or (f) postage stamps or first day covers; or (g) rare folios, manuscripts or books; or (h) memorabilia; or (i) wine; or (j) cars; or (k) recreational boats; or (l) memberships of sporting or social clubs; or (m) assets of a particular kind, if assets of that kind are ordinarily used or kept mainly for personal use or enjoyment (not including land). Note: The regulations may prescribe penalties of not more than 10 penalty units for offences against the regulations. See paragraph 353(1)(d). 2 Paragraph 353(1)(d) Omit "subject to subsection 376(6),". Note: This item removes a cross‑reference to a provision that has been repealed. 3 Application provision (1) The amendment made by item 1 of this Schedule applies to investments made before, on or after the commencement of this item. (2) To avoid doubt, regulations made for the purposes of section 62A of the Superannuation Industry (Supervision) Act 1993, inserted by item 1 of this Schedule, may be expressed to apply to only some of those investments. Schedule 3—Use of TFNs for superannuation purposes Part 1—Amendments commencing on 1 July 2011 Retirement Savings Accounts Act 1997 1 Subsections 137(4) and (5) Repeal the subsections. 2 After section 137 Insert: 137A Use of tax file number to locate amounts (1) This section applies if: (a) a holder of an RSA; or (b) a person applying to become such a holder; quotes his or her tax file number to the RSA provider in connection with the operation, or the possible future operation, of this Act and the other Superannuation Acts. (2) An RSA provider may, subject to any conditions contained in the regulations, use tax file numbers quoted as mentioned in subsection (1) in order to locate, in the records or accounts of the RSA provider, amounts held in RSAs provided by it. Note: Sections 8WA and 8WB of the Taxation Administration Act 1953 contain offences for unauthorised use etc. of tax file numbers. (3) This section does not affect the operation of subclauses 7.1 and 7.1A of National Privacy Principle 7 in Schedule 3 to the Privacy Act 1988. Note 1: Subclause 7.1 prohibits an RSA provider adopting a tax file number of an individual as the RSA provider's own identifier of the individual, such as by using the tax file number as an account or membership number. Note 2: See also Division 4 of Part III of the Privacy Act 1988 and the guidelines issued under that Division concerning the collection, storage, use and security of tax file number information. Superannuation Industry (Supervision) Act 1993 3 Subsections 299H(4) and (5) Repeal the subsections. 4 Subsection 299H(6) Omit "subsection (2), (3) or (5)", substitute "subsection (2) or (3)". Note: The following heading to subsection 299H(6) is inserted "Offences". 5 Subsection 299H(7) Omit "(2), (3) or (5)", substitute "subsection (2) or (3)". 6 Subsections 299J(4) and (5) Repeal the subsections. 7 Subsections 299J(6) and (7) Omit "or (5)". Note: The following heading to subsection 299J(6) is inserted "Offences". 8 Subsections 299K(4) and (5) Repeal the subsections. 9 Subsections 299K(6) and (7) Omit "subsection (2), (3) or (5)", substitute "subsection (2) or (3)". Note: The following heading to subsection 299K(6) is inserted "Offences". 10 Subsections 299L(4) and (5) Repeal the subsections. 11 Subsections 299L(6) and (7) Omit "or (5)". Note: The following heading to subsection 299L(6) is inserted "Offences". 12 After section 299L Insert: 299LA Use of tax file number to locate amounts (1) This section applies if: (a) a beneficiary of an eligible superannuation entity, or of a regulated exempt public sector superannuation scheme; or (b) an applicant to become such a beneficiary; quotes his or her tax file number to a trustee of the entity or scheme in connection with the operation, or the possible future operation, of this Act and the other Superannuation Acts. (2) A trustee of an eligible superannuation entity, or of a regulated exempt public sector superannuation scheme, may, subject to any conditions contained in the regulations, use tax file numbers quoted as mentioned in subsection (1) in order to locate, in the records or accounts of the entity or scheme, amounts held for the benefit of persons. Note: Sections 8WA and 8WB of the Taxation Administration Act 1953 contain offences for unauthorised use etc. of tax file numbers. (3) This section does not affect the operation of subclauses 7.1 and 7.1A of National Privacy Principle 7 in Schedule 3 to the Privacy Act 1988. Note 1: Subclause 7.1 prohibits a trustee adopting a tax file number of an individual as the trustee's own identifier of the individual, such as by using the tax file number as an account or membership number. Note 2: See also Division 4 of Part III of the Privacy Act 1988 and the guidelines issued under that Division concerning the collection, storage, use and security of tax file number information. 13 Application provision The amendments made by this Part apply to the use of tax file numbers on or after the commencement of this item, whether the tax file numbers were quoted before, on or after that commencement. Part 2—Amendments commencing on Proclamation Retirement Savings Accounts Act 1997 14 Section 16 Insert: eligible superannuation entity has the meaning given by Part 25A of the Superannuation Industry (Supervision) Act 1993. 15 Section 16 Insert: regulated exempt public sector superannuation scheme has the meaning given by Part 25A of the Superannuation Industry (Supervision) Act 1993. 16 Subsection 137A(2) Repeal the subsection, substitute: (2) An RSA provider may, subject to any conditions contained in the regulations, use tax file numbers quoted as mentioned in subsection (1): (a) in order to locate, in the records or accounts of the RSA provider, amounts held in RSAs provided by it; or (b) in order to facilitate the consolidation of any of the following in relation to a particular person: (i) RSAs provided by one or more RSA providers and held by the person; (ii) interests of the person in eligible superannuation entities or regulated exempt public sector superannuation schemes. Note: Sections 8WA and 8WB of the Taxation Administration Act 1953 contain offences for unauthorised use etc. of tax file numbers. (2A) Without limiting subsection (2), regulations made for the purposes of that subsection may contain conditions relating to: (a) a person consenting to use of a tax file number; or (b) procedures to be followed in a consolidation mentioned in paragraph (2)(b), including procedures to safeguard the integrity of the consolidation; or (c) an RSA provider disclosing tax file numbers to another RSA provider, or to a trustee of an eligible superannuation entity or of a regulated exempt public sector superannuation scheme, in order to facilitate such a consolidation. Note: The heading to section 137A is altered by adding at the end "or for consolidation". Superannuation Industry (Supervision) Act 1993 17 Subsection 299LA(2) Repeal the subsection, substitute: (2) A trustee of an eligible superannuation entity, or of a regulated exempt public sector superannuation scheme, may, subject to any conditions contained in the regulations, use tax file numbers quoted as mentioned in subsection (1): (a) in order to locate, in the records or accounts of the entity or scheme, amounts held for the benefit of persons; or (b) in order to facilitate the consolidation of any of the following in relation to a particular person: (i) RSAs provided by one or more RSA providers and held by the person; (ii) interests of the person in eligible superannuation entities or regulated exempt public sector superannuation schemes. Note: Sections 8WA and 8WB of the Taxation Administration Act 1953 contain offences for unauthorised use etc. of tax file numbers. (2A) Without limiting subsection (2), regulations made for the purposes of that subsection may contain conditions relating to: (a) a person consenting to use of a tax file number; or (b) procedures that must be followed in a consolidation mentioned in paragraph (2)(b), including procedures to safeguard the integrity of the consolidation; or (c) a trustee disclosing tax file numbers to another trustee, or to an RSA provider, in order to facilitate such a consolidation. Note: The heading to section 299LA is altered by adding at the end "or for consolidation". 18 Application provision The amendments made by this Part apply to the use of tax file numbers on or after the commencement of this item, whether the tax file numbers were quoted before, on or after that commencement. 19 Transitional provision—regulations (1) A regulation: (a) made for the purposes of subsection 137A(2) of the Retirement Savings Accounts Act 1997; and (b) in force immediately before the commencement of this item; has effect, after the commencement of this item, as if it had been made for the purposes of that subsection as amended by this Part. (2) A regulation: (a) made for the purposes of subsection 299LA(2) of the Superannuation Industry (Supervision) Act 1993; and (b) in force immediately before the commencement of this item; has effect, after the commencement of this item, as if it had been made for the purposes of that subsection as amended by this Part. Schedule 4—GST: payments of taxes, fees and charges A New Tax System (Goods and Services Tax) Act 1999 1 Subparagraph 13‑20(2)(ba)(i) Repeal the subparagraph, substitute: (i) is not an amount, the payment of which (or the discharging of a liability to make a payment of which), because of Division 81 or regulations made under that Division, is not the provision of *consideration; and Note: Division 81 excludes certain taxes, fees and charges from the provision of consideration. 2 Division 81 Repeal the Division, substitute: Division 81—Payments of taxes, fees and charges 81‑1 What this Division is about GST does not apply to payments of taxes, fees and charges that are excluded from the GST by this Division or by regulations. GST applies to certain taxes, fees and charges prescribed by regulations. 81‑5 Effect of payment of tax Australian tax not consideration (1) A payment, or the discharging of a liability to make a payment, is not the provision of *consideration to the extent the payment is an *Australian tax. Regulations may provide for exceptions (2) However, a payment you make, or a discharging of your liability to make a payment, is treated as the provision of *consideration to the extent the payment is an *Australian tax that is, or is of a kind, prescribed by the regulations. (3) For the purposes of subsection (2), the *consideration is taken to be provided to the entity to which the tax is payable, for a supply that the entity makes to you. 81‑10 Effect of payment of certain fees and charges Certain fees and charges not consideration (1) A payment, or the discharging of a liability to make a payment, is not the provision of *consideration to the extent the payment is an *Australian fee or charge that is of a kind covered by subsection (4) or (5). Prescribed fees and charges treated as consideration (2) However, a payment you make, or a discharging of your liability to make a payment, is treated as the provision of *consideration to the extent the payment is an *Australian fee or charge that is, or is of a kind, prescribed by the regulations. (3) For the purposes of subsection (2), the *consideration is taken to be provided to the entity to which the fee or charge is payable, for a supply that the entity makes to you. Fees or charges paid for permissions etc. (4) This subsection covers a fee or charge if the fee or charge: (a) relates to; or (b) relates to an application for; the provision, retention, or amendment, under an *Australian law, of a permission, exemption, authority or licence (however described). Fees or charges relating to information and record‑keeping etc. (5) This subsection covers a fee or charge paid to an *Australian government agency if the fee or charge relates to the agency doing any of the following: (a) recording information; (b) copying information; (c) modifying information; (d) allowing access to information; (e) receiving information; (f) processing information; (g) searching for information. 81‑15 Other fees and charges that do not constitute consideration The regulations may provide that the payment of a prescribed *Australian fee or charge, or of an Australian fee or charge of a prescribed kind, or the discharging of a liability to make such a payment, is not the provision of *consideration. 81‑20 Division has effect despite section 9‑15 This Division has effect despite section 9‑15 (which is about consideration). 81‑25 Date of effect of regulations Despite subsection 12(2) of the Legislative Instruments Act 2003, regulations made for the purposes of subsection 81‑5(2), 81‑10(2) or section 81‑15 may be expressed to take effect from a date before the regulations are registered under that Act. 3 Subsection 82‑10(3) Repeal the subsection, substitute: (3) If the other supply constitutes the payment of: (a) an *Australian tax prescribed by regulations made for the purposes of subsection 81‑5(2); or (b) an *Australian fee or charge prescribed by regulations made for the purposes of subsection 81‑10(2); this section overrides those regulations in relation to the payment. 4 Subparagraph 117‑5(1)(ba)(i) Repeal the subparagraph, substitute: (i) is not an amount, the payment of which (or the discharging of a liability to make a payment of which), because of Division 81 or regulations made under that Division, is not the provision of *consideration; and Note: Division 81 excludes certain taxes, fees and charges from the provision of consideration. 5 Section 195‑1 Insert: Australian fee or charge means a fee or charge (however described), other than an *Australian tax, imposed under an *Australian law and payable to an *Australian government agency. 6 Section 195‑1 Insert: Australian tax means a tax (however described) imposed under an *Australian law. 7 Section 195‑1 (definition of Australian tax, fee or charge) Repeal the definition. 8 Section 195‑1 (note at the end of the definition of connected with Australia) Omit "sections 81‑10 and 96‑5", substitute "section 96‑5". 9 Section 195‑1 (note at the end of the definition of consideration) After "81‑5,", insert "81‑10, 81‑15,". 10 Section 195‑1 (note at the end of the definition of taxable supply) Omit "81‑10,". A New Tax System (Luxury Car Tax) Act 1999 11 Paragraph 5‑20(1)(b) Omit "*Australian tax, fee or charge", substitute "*Australian tax or *Australian fee or charge". 12 Paragraph 5‑20(6)(b) Omit "*Australian tax, fee or charge", substitute "*Australian tax or *Australian fee or charge". 13 Section 27‑1 Insert: Australian fee or charge has the meaning given by section 195‑1 of the *GST Act. 14 Section 27‑1 Insert: Australian tax has the meaning given by section 195‑1 of the *GST Act. 15 Section 27‑1 (definition of Australian tax, fee or charge) Repeal the definition. 16 Application provision (1) The amendments made by this Schedule apply in relation to the payment, or the discharging of liability to make a payment, relating to an Australian tax, or an Australian fee or charge, imposed on or after 1 July 2011. (2) However, the amendments do not apply in relation to a payment, or a discharge of a liability to make a payment, relating to an Australian tax, or an Australian fee or charge, imposed before 1 July 2012 if the payment is of a kind specified by legislative instrument (a Division 81 determination): (a) made for the purposes of subsection 81‑5(2) of the A New Tax System (Goods and Services Tax) Act 1999; and (b) in force immediately before the commencement of this item. (3) Despite the repeal of subsection 81‑5(2) of the A New Tax System (Goods and Services Tax) Act 1999 by item 2 of this Schedule, a Division 81 determination continues to have effect, after the commencement of this item and before 1 July 2012, as if the repeal had not happened. Schedule 5—Other amendments Part 1—A New Tax System (Goods and Services Tax) Act 1999 1 Subparagraph 153‑50(1)(d)(i) Omit "agent's", substitute "intermediary's". Note: This item amends a reference to "agent's" that was not amended when Schedule 3 to the Tax Laws Amendment (2009 GST Administration Measures) Act 2010 replaced references to "agent" in section 153‑50 of the A New Tax System (Goods and Services Tax) Act 1999 with references to "intermediary". 2 Section 195‑1 (definition of member) Omit "means". Note: Items 2 and 3 fix a grammatical error. 3 Section 195‑1 (paragraph (b) of the definition of member) Before "an entity", insert "means". Part 2—Approved worker entitlement funds Fringe Benefits Tax Assessment Act 1986 4 Subsections 58PB(2) and (3) Repeal the subsections, substitute: Endorsed funds (2) A fund is also an approved worker entitlement fund if: (a) the fund is endorsed as an approved worker entitlement fund under subsection (3); or (b) the entity that operates the fund is endorsed for the operation of the fund under subsection (3A). (3) The Commissioner must endorse a fund as an approved worker entitlement fund if: (a) the fund is entitled to be endorsed as an approved worker entitlement fund (see subsection (4)); and (b) the fund has applied for the endorsement in accordance with Division 426 in Schedule 1 to the Taxation Administration Act 1953. (3A) The Commissioner must endorse an entity for the operation of a fund as an approved worker entitlement fund if: (a) the entity is entitled to be endorsed for the operation of the fund as an approved worker entitlement fund (see subsection (4A)); and (b) the entity has applied for the endorsement in accordance with Division 426 in Schedule 1 to the Taxation Administration Act 1953. 5 Subsection 58PB(4) Omit "Before the Governor‑General makes a regulation under paragraph (2)(a) prescribing a fund for the purposes of that paragraph, the Commissioner must be satisfied that", substitute "A fund is entitled to be endorsed as an approved worker entitlement fund if". 6 At the end of subsection 58PB(4) Add: ; and (f) the fund, or the entity that operates the fund, has an ABN. 7 After subsection 58PB(4) Insert: (4A) An entity is entitled to be endorsed for the operation of a fund as an approved worker entitlement fund if the fund is entitled to be endorsed as an approved worker entitlement fund. 8 Section 58PC Repeal the section. Income Tax Assessment Act 1997 9 Paragraph 126‑130(2)(b) Repeal the paragraph, substitute: (b) the amendment or replacement is done for the purpose of having: (i) the fund endorsed as an approved worker entitlement fund under subsection 58PB(3) of the Fringe Benefits Tax Assessment Act 1986; or (ii) the entity that operates the fund endorsed for the operation of the fund as an approved worker entitlement fund under subsection 58PB(3A) of that Act. Taxation Administration Act 1953 10 After paragraph 426‑5(b) in Schedule 1 Insert: (ba) endorsement of: (i) a fund as an approved worker entitlement fund under subsection 58PB(3) of the Fringe Benefits Tax Assessment Act 1986; or (ii) an entity for the operation of a fund as an approved worker entitlement fund under subsection 58PB(3A) of that Act; 11 Section 426‑55 in Schedule 1 (paragraph (b) of the note) After "subsections", insert "58PB(4) and (4A),". 12 After paragraph 426‑65(1)(b) in Schedule 1 Insert: (ba) as an approved worker entitlement fund under subsection 58PB(3) of the Fringe Benefits Tax Assessment Act 1986; (bb) for the operation of an approved worker entitlement fund under subsection 58PB(3A) of the Fringe Benefits Tax Assessment Act 1986; 13 Transitional provision—approved worker entitlement funds Scope (1) This item applies to a fund that, just before the commencement of this item, was an approved worker entitlement fund under subsection 58PB(2) of the Fringe Benefits Tax Assessment Act 1986. Fund taken to have been endorsed (2) Treat the fund as having been endorsed, on that commencement, by the Commissioner under subsection 58PB(3) of that Act, as amended by this Part. (3) To avoid doubt, subitem (2) does not prevent the Commissioner from revoking that endorsement at a later time under section 426‑55 in Schedule 1 to the Taxation Administration Act 1953. Fund not required to have ABN for 6 months (4) Paragraph 58PB(4)(f) of the Fringe Benefits Tax Assessment Act 1986, as added by this Part, does not apply to the fund before the end of the period of 6 months starting on the day this item commences. 14 Transitional provision—Australian Business Registrar During the period of 18 months starting on the day this item commences, the Australian Business Registrar: (a) may enter, but is not required to enter, in the Australian Business Register under subsection 426‑65(1) in Schedule 1 to the Taxation Administration Act 1953 a statement that: (i) an approved worker entitlement fund is endorsed as mentioned in paragraph (ba) of that subsection, as inserted by this Part; or (ii) an entity is endorsed as mentioned in paragraph (bb) of that subsection, as inserted by this Part; and (b) may publish on the Australian Taxation Office website, in relation to an approved worker entitlement fund: (i) the name of the fund; and (ii) the ABN (within the meaning of the A New Tax System (Australian Business Number) Act 1999) of the fund, or of the entity that operates the fund; and (iii) the date on which the fund was endorsed as mentioned in paragraph (ba) of that subsection, or on which an entity was endorsed for the operation of the fund under paragraph (bb) of that subsection. Part 3—Confidentiality of taxpayer Information Division 1—Main amendments Income Tax Assessment Act 1936 15 Subsection 6(1) (definition of Employment Department) Repeal the definition. 16 Subsection 6(1) (definition of Employment Minister) Repeal the definition. 17 Subsection 6(1) (definition of Employment Secretary) Repeal the definition, substitute: Employment Secretary has the meaning given by the Income Tax Assessment Act 1997. Income Tax Assessment Act 1997 18 Subsection 995‑1(1) Insert: Employment Department means the Department that: (a) deals with matters arising under Chapter 2 of the Fair Work Act 2009; and (b) is administered by the *Employment Minister. 19 Subsection 995‑1(1) Insert: Employment Minister means the Minister administering Chapter 2 of the Fair Work Act 2009. 20 Subsection 995‑1(1) Insert: Employment Secretary means the Secretary of the *Employment Department. Taxation Administration Act 1953 21 Subsection 355‑65(2) in Schedule 1 (cell at table item 4, column headed "The record is made for or the disclosure is to ...") At the end of the cell, add "or the *Employment Secretary". 22 Subsection 355‑65(2) in Schedule 1 (cell at table item 6, column headed "The record is made for or the disclosure is to ...") At the end of the cell, add "or the Chief Executive Officer of Centrelink". 23 Subsection 355‑65(5) in Schedule 1 (paragraph (b) of the cell at table item 2, column headed "and the record or disclosure ...") Omit "or residential address information", substitute ", residential address information or spousal information". Division 2—Amendment contingent on the Human Services Legislation Amendment Act 2011 Taxation Administration Act 1953 24 Subsection 355‑65(2) in Schedule 1 (table item 6, column headed "The record is made for or the disclosure is to ...") Omit "Chief Executive Officer of Centrelink", substitute "Chief Executive Centrelink (within the meaning of the Human Services (Centrelink) Act 1997)". Part 4—Employee share schemes Division 1—Income Tax Assessment Act 1997 25 Subsection 104‑75(6) (note) Repeal the note, substitute: Note: There are also exceptions for employee share trusts: see sections 130‑80 and 130‑90. 26 At the end of subsection 104‑85(6) Add: Note: There is also an exception for employee share trusts: see section 130‑90. 27 Before subsection 130‑90(1) Insert: Shares held for future acquisition under employee share schemes (1A) Disregard any *capital gain or *capital loss made by an *employee share trust to the extent that it results from a *CGT event, if: (a) immediately before the event happens, an *ESS interest is a *CGT asset of the trust; and (b) either of the following subparagraphs applies: (i) the event is CGT event E5, and the event happens because a beneficiary of the trust becomes absolutely entitled to the ESS interest as against the trustee; (ii) the event is CGT event E7, and the event happens because the trustee *disposes of the ESS interest to a beneficiary of the trust; and (c) Subdivision 83A‑B or 83A‑C (about employee share schemes) applies to the ESS interest. Shares held to satisfy the future exercise of rights acquired under employee share schemes 28 Subsection 130‑90(2) After "Subsection", insert "(1A) or". 29 Application provision The amendments made by this Division apply in relation to CGT events that happened, or that happen, on or after 1 July 2009. Division 2—Income Tax (Transitional Provisions) Act 1997 30 After subsection 83A‑5(2) Insert: (2A) To avoid doubt, for the purposes of subparagraph (2)(a)(i), section 139CDA of the Income Tax Assessment Act 1936 applied to the interest at the pre‑Division 83A time if the taxpayer in question first became or becomes an employee, as mentioned in that section, before the cessation time for the interest. It does not matter whether the employee so became or becomes an employee before, on or after the pre‑Division 83A time. Note: Section 139CDA was about shares or rights acquired while engaged in foreign service. 31 At the end of section 83A‑15 Add: Amendment of assessments (3) Section 170 of the Income Tax Assessment Act 1936 does not prevent the amendment of an assessment at any time for the purpose of giving effect to subsection (2) of this section. 32 After Division 124 Insert: Division 125—Demerger relief Table of Subdivisions 125‑B Consequences for owners of interests Subdivision 125‑B—Consequences for owners of interests Table of sections 125‑75 Employee share schemes 125‑75 Employee share schemes Despite the amendment of section 125‑75 of the Income Tax Assessment Act 1997 made by Schedule 1 to the Tax Laws Amendment (2009 Budget Measures No. 2) Act 2009, subsection (1) of that section continues to apply, from the commencement of that Schedule, to each ownership interest that it applied to just before that commencement. Division 3—Minor amendment Income Tax Assessment Act 1997 33 Section 130‑100 (the section 130‑100 inserted by item 40 of Schedule 1 to the Tax Laws Amendment (2009 Budget Measures No. 2) Act 2009) Renumber as section 130‑97. Part 5—General interest charge Taxation Administration Act 1953 34 Subsection 8AAB(1) Omit "Subsections (4) and (5) list", substitute "Subsection (4) lists". 35 Subsections 8AAB(4) and (5) Repeal the subsections, substitute: (4) The following table is an index of the laws that deal with liability to the charge. Liability to general interest charge Item Column 1 Column 2 Column 3 Section Act Topic 1 162‑100 A New Tax System (Goods and Services Tax) Act 1999 payment of GST instalments 2 168‑10 A New Tax System (Goods and Services Tax) Act 1999 supplies later found to be GST‑free supplies 3 25‑10 A New Tax System (Wine Equalisation Tax) Act 1999 purchases later found to be GST free supplies 4 52 First Home Saver Accounts Act 2008 repayment of FHSA contributions 5 93 Fringe Benefits Tax Assessment Act 1986 payment of fringe benefits tax or penalty tax 6 112B Fringe Benefits Tax Assessment Act 1986 payment of fringe benefits tax instalments 7 102UP Income Tax Assessment Act 1936 payment of trustee beneficiary non‑disclosure tax 8 128C Income Tax Assessment Act 1936 payment of withholding tax 9 163AA Income Tax Assessment Act 1936 returns by instalment taxpayers 10 163B Income Tax Assessment Act 1936 returns by persons other than instalment taxpayers 11 271‑80 in Schedule 2F Income Tax Assessment Act 1936 payment of family trust distribution tax 12 5‑15 Income Tax Assessment Act 1997 unpaid income tax or shortfall interest charge 13 197‑75 Income Tax Assessment Act 1997 payment of untainting tax 14 214‑155 Income Tax Assessment Act 1997 payment of franking tax by a corporate tax entity 15 292‑390 Income Tax Assessment Act 1997 payment of excess contributions tax or shortfall interest charge 16 345‑115 Income Tax Assessment Act 1997 payment of FHSA misuse tax 17 721‑30 Income Tax Assessment Act 1997 liability of members of consolidated groups 18 840‑810 Income Tax Assessment Act 1997 payment of managed investment trust withholding tax 19 214‑105 Income Tax (Transitional Provisions) Act 1997 payment of franking deficit tax 20 85 Petroleum Resource Rent Tax Assessment Act 1987 payment of petroleum resource rent tax, shortfall interest charge or instalment transfer interest charge 21 35 Product Grants and Benefits Administration Act 2000 payment of a designated scheme debt 22 21 Superannuation Contributions Tax (Assessment and Collection) Act 1997 increase in liability to pay superannuation contributions surcharge because of amendment of assessment 23 22 Superannuation Contributions Tax (Assessment and Collection) Act 1997 liability to pay superannuation contributions surcharge because of new assessment 24 25 Superannuation Contributions Tax (Assessment and Collection) Act 1997 payment of superannuation contributions surcharge or advance instalment 25 18 Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997 increase in liability to pay superannuation contributions surcharge because of amendment of assessment 26 21 Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997 payment of superannuation contributions surcharge 27 25 Superannuation (Government Co‑contribution for Low Income Earners) Act 2003 repayments or underpayments of Government co‑contributions that cannot be credited to an account 28 49 Superannuation Guarantee (Administration) Act 1992 payment of superannuation guarantee charge 29 15DC Superannuation (Self Managed Superannuation Funds) Taxation Act 1987 payment of superannuation (self managed superannuation funds) supervisory levy 30 17A Superannuation (Unclaimed Money and Lost Members) Act 1999 payment of unclaimed money 31 18C Superannuation (Unclaimed Money and Lost Members) Act 1999 repayment of Commissioner's payment that cannot be credited to an account 32 20F Superannuation (Unclaimed Money and Lost Members) Act 1999 payment of unclaimed superannuation of former temporary residents 33 20M Superannuation (Unclaimed Money and Lost Members) Act 1999 repayment of Commissioner's payment for former temporary resident that cannot be credited to an account 34 24F Superannuation (Unclaimed Money and Lost Members) Act 1999 payment in respect of lost member accounts 35 24L Superannuation (Unclaimed Money and Lost Members) Act 1999 repayment of Commissioner's payment for former lost member that cannot be credited to an account 36 8AAZF Taxation Administration Act 1953 RBA deficit debts 37 8AAZN Taxation Administration Act 1953 overpayments made by the Commissioner 38 16‑80 in Schedule 1 Taxation Administration Act 1953 payment of PAYG withholding amounts 39 45‑80 in Schedule 1 Taxation Administration Act 1953 payment of PAYG instalments 40 45‑230 in Schedule 1 Taxation Administration Act 1953 shortfall in quarterly PAYG instalments worked out on the basis of a varied rate 41 45‑232 in Schedule 1 Taxation Administration Act 1953 shortfall in quarterly PAYG instalments worked out on the basis of estimated benchmark tax 42 45‑235 in Schedule 1 Taxation Administration Act 1953 shortfall in annual PAYG instalments 43 45‑600 and 45‑620 in Schedule 1 Taxation Administration Act 1953 tax benefits relating to PAYG instalments 44 45‑870 and 45‑875 in Schedule 1 Taxation Administration Act 1953 head company's liability on shortfall in quarterly PAYG instalments 45 105‑80 in Schedule 1 Taxation Administration Act 1953 payment of a net fuel amount or an amount of indirect tax 46 263‑30 in Schedule 1 Taxation Administration Act 1953 payment of a foreign revenue claim 47 268‑75 in Schedule 1 Taxation Administration Act 1953 late payment of estimate 48 298‑25 in Schedule 1 Taxation Administration Act 1953 payment of administrative penalty 49 9 Tax Bonus for Working Australians Act (No. 2) 2009 repayment of overpayment of tax bonus 50 13 Termination Payments Tax (Assessment and Collection) Act 1997 increase in liability to pay termination payments surcharge because of amendment of assessment 51 16 Termination Payments Tax (Assessment and Collection) Act 1997 payment of termination payments surcharge Part 6—Deductible gift recipients Division 1—Amendments commencing on Royal Assent Income Tax Assessment Act 1997 36 Subsection 30‑20(2) (table items 1.2.2 and 1.2.3) Repeal the items. 37 Subsection 30‑20(2) (cell at table item 1.2.4, column headed "Fund, authority or institution") Repeal the cell, substitute: The Royal Australian and New Zealand College of Radiologists 38 Subsection 30‑20(2) (table items 1.2.11 and 1.2.15) Repeal the items. 39 Subsection 30‑25(2) (table items 2.2.15 and 2.2.19) Repeal the items. 40 Subsection 30‑40(2) (table item 3.2.3) Repeal the item. 41 Subsection 30‑45(2) (table items 4.2.5 and 4.2.15) Repeal the items. 42 Subsection 30‑50(2) (table items 5.2.16, 5.2.24 and 5.2.27) Repeal the items. 43 Section 30‑65 (table items 7.2.1, 7.2.2 and 7.2.4) Repeal the items. 44 Subsection 30‑80(2) (table items 9.2.2, 9.2.15 and 9.2.16) Repeal the items. 45 Section 30‑90 (table item 10.2.6) Repeal the item. 46 Section 30‑105 (table items 13.2.5, 13.2.11 and 13.2.14) Repeal the items. 47 Section 30‑315 (table items 5, 19, 21, 24, 25, 25C, 26, 28AAA, 28A, 28AB, 31A, 34, 38, 50A, 60A, 61, 83 and 91) Repeal the items. 48 Section 30‑315 (after table item 98) Insert: 98A Royal Australian and New Zealand College of Radiologists item 1.2.4 49 Section 30‑315 (table items 105B, 112AFA, 112AG, 112BA and 121C) Repeal the items. 50 Transitional provision—endorsement as deductible gift recipients (1) Treat Breast Cancer Network Australia and Indigenous Community Volunteers Limited as having been endorsed as deductible gift recipients under section 30‑120 of the Income Tax Assessment Act 1997 at the commencement of this item. (2) To avoid doubt, subitem (1) does not prevent the Commissioner from revoking either or both of those endorsements at a later time under section 426‑55 in Schedule 1 to the Taxation Administration Act 1953. Division 2—Amendments commencing on 1 July 2011 Income Tax Assessment Act 1997 51 Subsection 30‑50(2) (table item 5.2.25) Repeal the item. 52 Subsection 30‑80(2) (table item 9.2.20) Repeal the item. 53 Section 30‑105 (table items 13.2.4, 13.2.6, 13.2.12 and 13.2.13) Repeal the items. 54 Section 30‑315 (table items 20AA, 45AA, 49A, 81, 86F and 127AA) Repeal the items. Division 3—Other amendment Tax Laws Amendment (Repeal of Inoperative Provisions) Act 2006 55 Item 15 of Schedule 3 (heading) Omit "49A,". Note: This item makes an amendment consequential on item 3 of Schedule 6 to the Tax Laws Amendment (2008 Measures No. 2) Act 2008. 56 Effect of omission To avoid doubt, item 15 of Schedule 3 to the Tax Laws Amendment (Repeal of Inoperative Provisions) Act 2006 is taken never to have repealed item 49A of the table in section 30‑105 of the Income Tax Assessment Act 1997. Part 7—Section 23AB of the Income Tax Assessment Act 1936 Income Tax Assessment Act 1936 57 At the end of paragraph 23AB(5)(a) Add "and". Note: This item and items 59 and 60 add conjunctions at the end of paragraphs, for consistency with current drafting practice. 58 Subsection 23AB(7) After "that service" (first occurring), insert ". The amount of the rebate is". 59 At the end of paragraph 23AB(7)(a) Add "and". 60 At the end of paragraph 23AB(10)(a) Add "or". Part 8—Definitions and signposts to related material Income Tax Assessment Act 1936 61 Subsection 6(1) (at the end of the definition of dividend) Add: Note: Subsection (4) sets out when paragraph (d) of this definition does not apply. 62 Subsection 6(1) (at the end of the definition of permanent establishment) Add: Note: Subsection (6) treats a person as carrying on, at or through a permanent establishment that is a place described in paragraph (d) of this definition, the business of selling the goods manufactured, assembled, processed, packed or distributed by the other person as described in that paragraph. 63 Subsection 6(1) (definition of RSA) Repeal the definition, substitute: RSA has the same meaning as in the Income Tax Assessment Act 1997. Note: That Act defines RSA as having the meaning given by the Retirement Savings Accounts Act 1997. 64 Subsection 6(1) (definition of RSA provider) Repeal the definition, substitute: RSA provider has the same meaning as in the Income Tax Assessment Act 1997. Note: That Act defines RSA provider as having the same meaning as in the Retirement Savings Accounts Act 1997. Part 9—Repeal of redundant reference to Papua New Guinea Income Tax Assessment Act 1936 65 At the end of paragraph 6AA(1)(d) Add "and". 66 Paragraph 6AA(1)(e) Omit "Australia; and", substitute "Australia.". 67 Paragraph 6AA(1)(f) Repeal the paragraph. Part 10—Repeal of redundant references to franking Income Tax Assessment Act 1936 68 Paragraph 45C(3)(a) Omit "class C". 69 Application provision—amendment of paragraph 45C(3)(a) The amendment of paragraph 45C(3)(a) of the Income Tax Assessment Act 1936 made by this Part applies to notices of determination under section 45B of that Act served on or after 1 July 2002. 70 Subsections 45C(5) and (6) Repeal the subsections. Part 11—Correction of cross‑reference in provision about dividend streaming etc. Income Tax Assessment Act 1936 71 Subsection 45D(2) Omit "referred to in paragraph (1)(b)", substitute "under section 45A". 72 Application provision—amendment of subsection 45D(2) The amendment of subsection 45D(2) of the Income Tax Assessment Act 1936 made by this Part applies to determinations made under section 45A of that Act on or after 24 October 2002. Part 12—Minor changes to provisions about concessional rebates Income Tax Assessment Act 1936 Note: The heading to section 159HA is altered by omitting ", 159K". 73 Subsection 159J(1B) Omit "the the", substitute "the". Part 13—Fixing outdated references to Medicare levy Income Tax Assessment Act 1997 74 Section 3‑1 Repeal the section. 75 Subsection 3‑5(1) (note 1) Omit "Division 785", substitute "the Medicare Levy Act 1986 and Part VIIB of the Income Tax Assessment Act 1936". Part 14—Repeal of references to previously repealed provisions Income Tax Assessment Act 1997 76 Section 11‑15 (table item headed "United Nations") Omit: Australian Federal Police member in Cambodia, pay and allowance 23ADA 77 Section 830‑75 Omit "*subject to tax" (wherever occurring), substitute "*subject to foreign tax". Note: This item corrects references to a definition that was repealed. Part 15—Correction of asterisking of reference to tax debts Income Tax Assessment Act 1997 78 Subsection 25‑5(7) Omit "tax debts", substitute "*tax debts". Part 16—Repeal of outdated provisions about exemption from income tax Income Tax Assessment Act 1936 79 Paragraph 128B(3)(ab) Repeal the paragraph. Income Tax Assessment Act 1997 80 Section 11‑5 (table item headed "film") Repeal the item. 81 Section 11‑5 (table item headed "mining") Omit: Phosphate Mining Company of Christmas Island...... 50‑35 82 Section 50‑35 (table item 7.1) Repeal the item. 83 Section 50‑45 (heading) Repeal the heading, substitute: 50‑45 Sports, culture and recreation 84 Section 50‑45 (table items 9.3 and 9.4) Repeal the items. Part 17—Correction of asterisking of references to quarter Income Tax Assessment Act 1997 85 Subsection 114‑15(2) Omit "quarter", substitute "*quarter". 86 Subsection 114‑15(3) (method statement, steps 1 and 3) Omit "quarter",