Commonwealth: Tax Laws Amendment (2012 Measures No. 1) Act 2012 (Cth)

Tax Laws Amendment (2012 Measures No. 1) Act 2012 No. 71, 2012 as amended Compilation start date: 28 June 2013 Includes amendments up to: Act No. 85, 2013 About this compilation This compilation This is a compilation of the Tax Laws Amendment (2012 Measures No. 1) Act 2012 as in force on 28 June 2013. It includes any commenced amendment affecting the legislation to that date. This compilation was prepared on 24 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—Disallow deductions against rebatable benefits Income Tax Assessment Act 1997 Schedule 2—Limiting the trading stock exception for superannuation funds Income Tax Assessment Act 1997 Schedule 3—Tax exemption for payments to individuals for recent floods Part 1—Main amendments Income Tax Assessment Act 1997 Schedule 4—Phasing out the dependent spouse tax offset Income Tax Assessment Act 1936 Schedule 5—Miscellaneous amendments to the taxation laws Income Tax Assessment Act 1997 Minerals Resource Rent Tax Act 2012 Taxation Administration Act 1953 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 for related purposes 1 Short title This Act may be cited as the Tax Laws Amendment (2012 Measures No. 1) Act 2012. 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 2012 2. Schedules 1 and 2 The day this Act receives the Royal Assent. 27 June 2012 3. Schedule 3, Part 1 The day this Act receives the Royal Assent. 27 June 2012 4. Schedule 3, Part 2 1 July 2015. 1 July 2015 5. Schedule 4 The day this Act receives the Royal Assent. 27 June 2012 6. Schedule 5, items 1 to 16 Immediately after the commencement of the Minerals Resource Rent Tax Act 2012. 1 July 2012 7. Schedule 5, item 17 Immediately after the commencement of Part 1 of Schedule 2 to the Minerals Resource Rent Tax (Consequential Amendments and Transitional Provisions) Act 2012. 1 July 2012 8. Schedule 5, item 18 Immediately after the commencement of Part 2 of Schedule 2 to the Minerals Resource Rent Tax (Consequential Amendments and Transitional Provisions) Act 2012. Does not commence 9. Schedule 5, item 19 The day this Act receives the Royal Assent. 27 June 2012 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—Disallow deductions against rebatable benefits Income Tax Assessment Act 1997 1 Section 12‑5 (after table item headed "rates and land taxes") Insert: rebatable benefits no deduction for ........................... 26‑19 2 Before section 26‑20 Insert: 26‑19 Rebatable benefits (1) You cannot deduct under this Act a loss or outgoing to the extent that the loss or outgoing is incurred in gaining or producing a rebatable benefit (within the meaning of section 160AAA of the Income Tax Assessment Act 1936). (2) To the extent that you use property in gaining or producing a rebatable benefit, your use of the property is taken not to be for the *purpose of producing assessable income if subsection (1) would stop you deducting a loss or outgoing if you incurred it in the income year in gaining or producing the rebatable benefit. Note: Under some provisions of this Act, in order to deduct an amount for your property, you must have used the property for the purpose of producing assessable income. 3 Subsection 995‑1(1) (note at the end of the definition of purpose of producing assessable income) Omit "Section 32‑15 (about using property in providing entertainment) treats", substitute "Sections 26‑19 (about using property in gaining or producing rebatable benefits) and 32‑15 (about using property in providing entertainment) treat". 4 Application of amendments The amendments made by this Schedule apply to assessments for the 2011‑12 income year and later income years. Schedule 2—Limiting the trading stock exception for superannuation funds Income Tax Assessment Act 1997 1 Section 70‑10 Before "Trading", insert "(1)". 2 Paragraph 70‑10(b) Omit "*live stock;", substitute "*live stock.". 3 Section 70‑10 Omit "but does not include a *Division 230 financial arrangement.". 4 At the end of section 70‑10 (before the notes) Add: (2) Trading stock does not include: (a) a *Division 230 financial arrangement; or (b) a *CGT asset covered by section 275‑105 that: (i) is owned by a *complying superannuation fund, a *complying approved deposit fund or a *pooled superannuation trust; or (ii) is a *complying superannuation/FHSA asset of a *life insurance company. 5 At the end of subsection 295‑85(4) Add: Note: For item 5, certain assets (particularly shares, units in a unit trust, and land) are not trading stock when owned by the entity (see paragraph 70‑10(2)(b)). 6 Application of amendments (1) The amendments made by this Schedule apply in relation to CGT assets owned after 7.30 pm, by legal time in the Australian Capital Territory, on 10 May 2011 (the budget time). (2) However, the amendments made by this Schedule do not apply in relation to a CGT asset owned by an entity after the budget time if, just before the budget time, the entity owned and held the CGT asset as trading stock. Schedule 3—Tax exemption for payments to individuals for recent floods Part 1—Main amendments Income Tax Assessment Act 1997 1 Section 11‑15 (table item headed "welfare") After: Assistance for New Zealand non‑protected special category visa holders for a disaster that occurred in Australia during the 2010‑11 financial year 51‑30 insert: Assistance for New Zealand non‑protected special category visa holders for the floods that occurred in New South Wales and Queensland in January, February and March 2012 51‑30 2 Section 51‑30 (after table item 5.1B) Insert: 5.1C an individual in receipt of an ex‑gratia payment from the Commonwealth known as assistance for New Zealand non‑protected special category visa holders for the floods that occurred in New South Wales and Queensland in January, February and March 2012 the payment the payment must be claimed: (a) after 5 February 2012; and (b) before 7 August 2012 Schedule 4—Phasing out the dependent spouse tax offset Income Tax Assessment Act 1936 1 Sub‑subparagraph 23AB(7)(a)(ii)(B) Omit "in respect of a dependant included in class 5 or 6 in the table in subsection 159J(2)", substitute "in respect of a dependant who is an invalid relative for the purposes of class 5 in the table in subsection 159J(2) or a dependant included in class 6 in the table in subsection 159J(2)". 2 Subparagraph 23AB(7)(a)(iii) Omit "subsection 159J(2)", substitute "subsection 159J(2) or an invalid spouse or carer spouse for the purposes of class 5 in the table in subsection 159J(2)". 3 Subparagraphs 79A(2)(a)(ii), (d)(ii) and (e)(ii) Omit "subsection 159J(2)", substitute "subsection 159J(2) or an invalid spouse or carer spouse for the purposes of class 5 in the table in subsection 159J(2)". 4 Subsection 79A(4) (paragraph (b) of the definition of relevant rebate amount) Omit "in respect of a dependant included in class 5 or 6 in the table in subsection 159J(2)", substitute "in respect of a dependant who is an invalid relative for the purposes of class 5 in the table in subsection 159J(2) or a dependant included in class 6 in the table in subsection 159J(2)". 5 Subparagraph 79B(2)(a)(iii) Omit "class 1", substitute "class 1 or an invalid spouse or carer spouse for the purposes of class 5". 6 Paragraph 79B(4)(c) Omit "subsection 159J(2)", substitute "subsection 159J(2) or an invalid spouse or carer spouse for the purposes of class 5 in the table in subsection 159J(2)". 7 Subparagraph 79B(4A)(b)(iii) Omit "subsection 159J(2)", substitute "subsection 159J(2) or an invalid spouse or carer spouse for the purposes of class 5 in the table in subsection 159J(2)". 8 Subsection 79B(6) (paragraph (b) of the definition of concessional rebate amount) Omit "in respect of a dependant included in class 5 or 6 in the table in subsection 159J(2)", substitute "in respect of a dependant who is an invalid relative for the purposes of class 5 in the table in subsection 159J(2) or a dependant included in class 6 in the table in subsection 159J(2)". 9 Paragraph 159J(1AB)(a) Omit "class 1", substitute "class 1 or who is an invalid spouse or carer spouse for the purposes of class 5 in the table in subsection 159J(2)". 10 Paragraph 159J(1AB)(b) Omit "2, 5 or 6", substitute "2 or 6, or an invalid relative for the purposes of class 5". 11 Subsection 159J(1C) Omit "1 July 1971", substitute "1 July 1952". 12 Application of amendments (1) The amendments made by items 1 to 10 apply to assessments for the 2011‑12 income year and later income years. (2) The amendment made by item 11 applies to assessments for the 2012‑13 income year and later income years. Schedule 5—Miscellaneous amendments to the taxation laws Income Tax Assessment Act 1997 1 Section 960‑260 Omit "in this Act". 2 Section 960‑265 (at the end of the table) Add: 14 Minerals resource rent tax—starting base losses subsection 80‑45(1) of the Minerals Resource Rent Tax Act 2012 3 Subsection 995‑1(1) (paragraph (b) of the definition of index number) Omit "for an amount mentioned in a provision listed at another item in section 960‑265", substitute "for any other amount". Minerals Resource Rent Tax Act 2012 4 Subsection 15‑5(1) (note 2) After "not", insert "necessarily". 5 Subsection 15‑5(4) (note 2) After "not", insert "necessarily". 6 Section 30‑5 (note) Repeal the note, substitute: Note: Most of the amounts are covered by this Division. However, the following amounts may also be included in a miner's mining revenue: (a) amounts that are in effect recoupment of the value of starting base assets (see section 90‑65); (b) certain pre‑mining profits (see section 140‑20); (c) amounts arising as a result of adjustments to take account of changes in circumstances (see Division 160); (d) amounts arising as a result of balancing adjustment events for starting base assets (see Division 165). 7 Paragraph 30‑15(1)(c) Repeal the paragraph, substitute: (c) makes an initial supply of or uses, or exports from Australia, something produced using the taxable resource, but not after: (i) paragraph (a) or (b) has already applied in relation to the taxable resource; or (ii) this paragraph has already applied in relation to the thing produced using the taxable resource. 8 Subsection 30‑15(1) (note) Repeal the note, substitute: Note: There is at least one mining revenue event in relation to each quantity of taxable resource. However, there could only be more than one mining revenue event in relation to a quantity of taxable resource if more than one thing is produced from it. Example: There are 2 mining revenue events in relation to a quantity of coal if it is extracted then consumed producing both electricity and fly‑ash. 9 Paragraph 30‑25(5)(a) Omit "what it is assumed by subsection (4) to do", substitute "the things it is assumed by subsection (4) to do, and the circumstances in which it is assumed by that subsection to do them". 10 Subparagraph 30‑25(5)(a)(ii) Repeal the subparagraph, substitute: (ii) any depreciation of assets; 11 Subsection 30‑25(5) Omit "*taxable resource in relation to which the *mining revenue event happens", substitute "*mining revenue event". 12 Paragraph 30‑55(b) Repeal the paragraph, substitute: (b) the amount is received, or becomes receivable, for a *supply, or a proposed supply, of: (i) *taxable resources extracted, or proposed to be extracted, from the *project area for the mining project interest; or (ii) things produced, or proposed to be produced, using such taxable resources; and 13 Paragraph 35‑40(2)(b) Omit "relating to the mining project interest", substitute "to which a mining project interest relates". 14 Paragraph 115‑10(1)(e) After "*starting base asset", insert "that has a *base value greater than zero". 15 Section 135‑15 Repeal the section, substitute: 135‑15 The effect of renewing or changing mining ventures (1) A change in, or a renewal of, a *mining venture to which a mining project interest relates does not cause the *termination day for the mining project interest to happen. (2) However, if the change in, or the renewal of, the *mining venture would otherwise result in the mining project interest covering an additional area: (a) the *project area for the mining project interest does not include that additional area; and (b) to avoid doubt, the additional area is the project area for another mining project interest. Note: The other mining project interest may be combined with the original mining project interest under Division 115. 16 Subsection 200‑10(1) Omit "$50 million", substitute "$75 million". Taxation Administration Act 1953 17 Subsection 350‑10(1) in Schedule 1 (table item 2) Repeal the item, substitute: 2 (a) a notice of assessment of an *assessable amount; or (a) the assessment or declaration was properly made; and (b) a declaration under: (b) except in proceedings under Part IVC of this Act on a review or appeal relating to the assessment or declaration—the amounts and particulars of the assessment or declaration are correct. (i) subsection 165‑40(1) or 165‑45(3) of the *GST Act; or (ii) subsection 75‑40(1) or 75‑45(3) of the Fuel Tax Act 2006; 18 Subsection 350‑10(1) in Schedule 1 (table item 2) Repeal the item, substitute: 2 a notice of assessment of an *assessable amount; (a) the assessment was properly made; and (b) except in proceedings under Part IVC of this Act on a review or appeal relating to the assessment—the amounts and particulars of the assessment are correct. 19 Subsection 355‑65(8) in Schedule 1 (paragraph (a) of the cell at table item 4, column headed "and the record or disclosure ...") Omit "section 140V", substitute "section 140ZH". Note: This item fixes an incorrect cross‑reference. Endnotes Endnote 1—About the endnotes The endnotes provide details of the history of this legislation and its provisions. The following endnotes are included in each compilation: Endnote 1—About the endnotes Endnote 2—Abbreviation key Endnote 3—Legislation history Endnote 4—Amendment history Endnote 5—Uncommenced amendments Endnote 6—Modifications Endnote 7—Misdescribed amendments Endnote 8—Miscellaneous If there is no information under a particular endnote, the word "none" will appear in square brackets after the endnote heading. Abbreviation key—Endnote 2 The abbreviation key in this endnote sets out abbreviations that may be used in the endnotes. Legislation history and amendment history—Endnotes 3 and 4 Amending laws are annotated in the legislation history and amendment history. The legislation history in endnote 3 provides information about each law that has amended the compiled law. The information includes commencement information for amending laws and details of application, saving or transitional provisions that are not included in this compilation. The amendment history in endnote 4 provides information about amendments at the provision level. It also includes information about any provisions that have expired or otherwise ceased to have effect in accordance with a provision of the compiled law. Uncommenced amendments—Endnote 5 The effect of uncommenced amendments is not reflected in the text of the compiled law but the text of the amendments is included in endnote 5. Modifications—Endnote 6 If the compiled law is affected by a modification that is in force, details of the modification are included in endnote 6. Misdescribed amendments—Endnote 7 An amendment is a misdescribed amendment if the effect of the amendment cannot be incorporated into the text of the compilation. Any misdescribed amendment is included in endnote 7. Miscellaneous—Endnote 8 Endnote 8 includes any additional information that may be helpful for a reader of the compilation. Endnote 2—Abbreviation key ad = added or inserted pres = present am = amended prev = previous c = clause(s) (prev) = previously Ch = Chapter(s) Pt = Part(s) def = definition(s) r = regulation(s)/rule(s) Dict = Dictionary Reg = Regulation/Regulations disallowed = disallowed by Parliament reloc = relocated Div = Division(s) renum = renumbered exp = expired or ceased to have effect rep = repealed hdg = heading(s) rs = repealed and substituted LI = Legislative Instrument s = section(s) LIA = Legislative Instruments Act 2003 Sch = Schedule(s) mod = modified/modification Sdiv = Subdivision(s) No = Number(s) SLI = Select Legislative Instrument o = order(s) SR = Statutory Rules Ord = Ordinance Sub‑Ch = Sub‑Chapter(s) orig = original SubPt = Subpart(s) par = paragraph(s)/subparagraph(s) /sub‑subparagraph(s) Endnote 3—Legislation history Act Number and year Assent Commencement Application, saving and transitional provisions Tax Laws Amendment (2012 Measures No. 1) Act 2012 71, 2012 27 June 2012 See s 2(1) Tax and Superannuation Laws Amendment (2013 Measures No. 2) Act 2013 85, 2013 28 June 2013 Sch 2 (item 5): Royal Assent — Endnote 4—Amendment history Provision affected How affected Sch 3 Pt 2.................... rep No 85, 2013 item 3................... rep No 85, 2013 item 4................... rep No 85, 2013 Endnote 5—Uncommenced amendments [none] Endnote 6—Modifications [none] Endnote 7—Misdescribed amendments [none] Endnote 8—Miscellaneous [none]