Commonwealth: Treasury Laws Amendment (2020 Measures No. 5) Act 2020 (Cth)

Treasury Laws Amendment (2020 Measures No. 5) Act 2020 No. 118, 2020 Compilation No. 1 Compilation date: 24 November 2021 Registered: 24 November 2021 This compilation only includes an editorial change About this compilation This compilation This is a compilation of the Treasury Laws Amendment (2020 Measures No. 5) Act 2020 that shows the text of the law as amended and in force on 24 November 2021 (the compilation date). The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law. Uncommenced amendments The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Legislation Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the series page on the Legislation Register for the compiled law. Application, saving and transitional provisions for provisions and amendments If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes. Editorial changes For more information about any editorial changes made in this compilation, see the endnotes. Modifications If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the series page on the Legislation Register for the compiled law. Self‑repealing provisions If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes. Contents 1 Short title 2 Commencement 3 Schedules Schedule 1—Making tax free certain small business grants relating to the coronavirus recovery Income Tax Assessment Act 1997 Schedule 2—Payment of amounts to KiwiSaver scheme provider Part 1—Main amendments Income Tax Assessment Act 1997 Superannuation (Unclaimed Money and Lost Members) Act 1999 Part 2—Contingent amendments Superannuation (Unclaimed Money and Lost Members) Act 1999 Schedule 3—Deductible gift recipients Income Tax Assessment Act 1997 Endnotes Endnote 1—About the endnotes Endnote 2—Abbreviation key Endnote 3—Legislation history Endnote 4—Amendment history Endnote 5—Editorial changes An Act to amend the law relating to taxation and superannuation, and for related purposes 1 Short title This Act is the Treasury Laws Amendment (2020 Measures No. 5) Act 2020. 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 Provisions 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. 11 December 2020 2. Schedule 1 The day after this Act receives the Royal Assent. 12 December 2020 3. Schedule 2, Part 1 A single day to be fixed by Proclamation. 11 December 2021 However, if the provisions do not commence within the period of 12 months beginning on the day this Act receives the Royal Assent, they commence on the day after the end of that period. 4. Schedule 2, Part 2 The later of: 11 December 2021 (a) the commencement of the provisions covered by table item 3; and (paragraph (a) applies) (b) immediately after the commencement of Schedule 1 to the Treasury Laws Amendment (Reuniting More Superannuation) Act 2021. However, the provisions do not commence at all if the event mentioned in paragraph (b) does not occur. 5. Schedule 3 The first 1 January, 1 April, 1 July or 1 October to occur after the day this Act receives the Royal Assent. 1 January 2021 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 Schedules Legislation 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—Making tax free certain small business grants relating to the coronavirus recovery Income Tax Assessment Act 1997 1 Section 11‑55 (table item headed "Coronavirus economic response payment") Repeal the item, substitute: Coronavirus economic response certain payments in accordance with the Coronavirus Economic Response Package (Payments and Benefits) Act 2020 59‑95 State and Territory grants to small business relating to the recovery from the coronavirus 59‑97 2 After section 59‑95 Insert: 59‑97 State and Territory grants to small business relating to the recovery from the coronavirus known as COVID‑19 (1) A payment an entity receives is not assessable income and is not *exempt income if: (a) the entity receives the payment under a grant program administered by: (i) a State or a Territory; or (ii) an authority of a State or a Territory; and (b) the grant program is declared under subsection (3) to be an eligible program (whether this declaration is made before, on or after the day the entity receives the payment); and (c) the entity receives the payment in the 2020‑21 *financial year; and (d) the entity is a *small business entity, or an entity covered by subsection (2), for the income year in which the entity receives the payment. (2) An entity is covered by this subsection for an income year if: (a) the entity is not a *small business entity for the income year; and (b) the entity would be a small business entity for the income year if: (i) each reference in Subdivision 328‑C (about what is a small business entity) to $10 million were instead a reference to $50 million; and (ii) the reference in paragraph 328‑110(5)(b) to a small business entity were instead a reference to an entity covered by this subsection. (3) The Minister must, by legislative instrument, declare a grant program to be an eligible program if the Minister is satisfied that: (a) the program was first publicly announced on or after 13 September 2020 by the State, Territory or authority that is administering it; and (b) the program is, in effect, responding to economic impacts of the coronavirus known as COVID‑19; and (c) the program is, in effect, directed at supporting businesses: (i) who are the subject of a public health directive applying to a geographical area in which the businesses operate; and (ii) whose operations have been significantly disrupted as a result of the public health directive; and (d) the State, Territory or authority has requested the program to be declared to be an eligible program under this subsection. 3 Application of amendments The amendments made by this Schedule apply in relation to the 2020‑21 income year and later income years. Schedule 2—Payment of amounts to KiwiSaver scheme provider Part 1—Main amendments Income Tax Assessment Act 1997 1 Section 11‑55 (table item headed "superannuation") After: KiwiSaver schemes, superannuation benefits paid from complying superannuation funds to 312‑15 insert: KiwiSaver schemes, superannuation benefits paid by Commissioner to 312‑20 2 Section 11‑55 (table item headed "superannuation") Omit: unclaimed money payment .................... 306‑20 substitute: unclaimed money payment to government .......... 306‑20 3 Section 312‑1 Omit: This Division deals with amounts transferred between KiwiSaver schemes and complying superannuation funds. substitute: This Division deals with amounts transferred between KiwiSaver schemes and complying superannuation funds. This Division also deals with amounts paid by the Commissioner to KiwiSaver schemes. 4 Section 312‑5 After "with", insert "the Superannuation (Unclaimed Money and Lost Members) Act 1999 and". 5 Section 312‑15 (heading) After "paid", insert "from complying superannuation funds". 6 At the end of Subdivision 312‑C Add: 312‑20 Superannuation benefits paid by Commissioner to KiwiSaver schemes An *unclaimed money payment that you are taken to receive under section 307‑15 because it is paid to a KiwiSaver scheme provider by the Commissioner in accordance with the Superannuation (Unclaimed Money and Lost Members) Act 1999 is not assessable income and is not *exempt income. Superannuation (Unclaimed Money and Lost Members) Act 1999 7 Section 7 After: (b) to a fund identified by the person; or insert: (ba) to a KiwiSaver scheme provider identified by the person; or 8 Section 7 Omit: Superannuation of lost members At the times determined by the Commissioner, superannuation providers must give the Commissioner of Taxation details relating to: (a) small accounts of lost members; and (b) inactive accounts of unidentifiable lost members. Superannuation providers must pay to the Commissioner of Taxation the value of any such accounts. Later, the Commissioner must, if satisfied that it is possible to do so, pay an amount he or she has received in respect of a person: (a) to a fund identified by the person; or (b) if the person has reached eligibility age or the amount is less than $200—to the person; or (c) if the person has died—to the person's death beneficiaries or legal personal representative. Superannuation of inactive low‑balance members At times determined by the Commissioner, superannuation providers must give the Commissioner of Taxation details relating to inactive low‑balance accounts. Superannuation providers must pay to the Commissioner of Taxation the value of any such accounts. Later, the Commissioner must, if satisfied that it is possible to do so, pay an amount the Commissioner has received in respect of a person: (a) to a fund identified by the person; or (b) if the person has reached eligibility age or the amount is less than $200—to the person; or (c) if the person has died—to the person's death beneficiaries or legal personal representative. substitute: Superannuation of lost members At the times determined by the Commissioner, superannuation providers must give the Commissioner of Taxation details relating to: (a) small accounts of lost members; and (b) inactive accounts of unidentifiable lost members. Superannuation providers must pay to the Commissioner of Taxation the value of any such accounts. Later, the Commissioner must, if satisfied that it is possible to do so, pay an amount the Commissioner has received in respect of a person: (a) to a fund identified by the person; or (b) to a KiwiSaver scheme provider identified by the person; or (c) if the person has reached eligibility age or the amount is less than $200—to the person; or (d) if the person has died—to the person's death beneficiaries or legal personal representative. Superannuation of inactive low‑balance members At times determined by the Commissioner, superannuation providers must give the Commissioner of Taxation details relating to inactive low‑balance accounts. Superannuation providers must pay to the Commissioner of Taxation the value of any such accounts. Later, the Commissioner must, if satisfied that it is possible to do so, pay an amount the Commissioner has received in respect of a person: (a) to a fund identified by the person; or (b) to a KiwiSaver scheme provider identified by the person; or (c) if the person has reached eligibility age or the amount is less than $200—to the person; or (d) if the person has died—to the person's death beneficiaries or legal personal representative. 9 Section 8 Insert: KiwiSaver scheme has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997. KiwiSaver scheme provider has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997. 10 After paragraph 17(2)(a) Insert: (aa) to a single KiwiSaver scheme provider if: (i) the person has not died; and (ii) the person directs the Commissioner to pay to the KiwiSaver scheme provider; and (iii) the matters (if any) prescribed by the regulations are satisfied; or 11 Paragraph 17(2AB)(a) After "a fund,", insert "a KiwiSaver scheme provider,". 12 Paragraph 17(2AB)(b) After "(2)(a),", insert "(aa),". 13 Subsection 17(2AB) After "the fund,", insert "KiwiSaver scheme provider,". 14 Paragraph 18B(1)(a) After "this Part", insert "(other than a payment to a KiwiSaver scheme provider)". 15 Paragraph 18C(1)(a) Omit "subsection 17(2)", substitute "paragraph 17(2)(a)". 16 After paragraph 20H(2)(b) Insert: (ba) to a single KiwiSaver scheme provider, if the person directs the Commissioner to pay to the provider and the matters (if any) prescribed by the regulations are satisfied; or 17 Subsection 20H(2AA) After "fund", insert ", KiwiSaver scheme provider". 18 Paragraph 20L(1)(a) After "this Part", insert "(other than a payment to a KiwiSaver scheme provider)". 19 Paragraph 20M(1)(a) Omit "subsection 20H(2), (2AA)", substitute "paragraph 20H(2)(b) or subsection 20H(2AA)". 20 After paragraph 20QF(2)(a) Insert: (aa) to a single KiwiSaver scheme provider if: (i) the person has not died; and (ii) the person directs the Commissioner to pay to the KiwiSaver scheme provider; and (iii) the matters (if any) prescribed by the regulations are satisfied; or 21 Paragraph 20QF(3)(a) Omit "subparagraph (2)(a)(ii) does", substitute "subparagraphs (2)(a)(ii) and (aa)(ii) do". 22 Paragraph 20QF(5)(a) After "a fund,", insert "a KiwiSaver scheme provider,". 23 Paragraph 20QF(5)(b) After "(2)(a),", insert "(aa),". 24 Subsection 20QF(5) After "the fund,", insert "KiwiSaver scheme provider,". 25 Paragraph 20QK(1)(a) After "this Part", insert "(other than a payment to a KiwiSaver scheme provider)". 26 Paragraph 20QL(1)(a) Omit "subsection 20QF(2) or (5)", substitute "paragraph 20QF(2)(a) or subsection 20QF(5)". 27 After paragraph 24G(2)(a) Insert: (aa) to a single KiwiSaver scheme provider if: (i) the person has not died; and (ii) the person directs the Commissioner to pay to the KiwiSaver scheme provider; and (iii) the matters (if any) prescribed by the regulations are satisfied; or 28 Paragraph 24G(2A)(a) Omit "subparagraph (2)(a)(ii) does", substitute "subparagraphs (2)(a)(ii) and (aa)(ii) do". 29 Paragraph 24G(3A)(a) After "a fund,", insert "a KiwiSaver scheme provider,". 30 Paragraph 24G(3A)(b) After "(2)(a),", insert "(aa),". 31 Subsection 24G(3A) After "the fund,", insert "KiwiSaver scheme provider,". 32 Paragraph 24K(1)(a) After "this Part", insert "(other than a payment to a KiwiSaver scheme provider)". 33 Paragraph 24L(1)(a) Omit "subsection 24G(2) or (3A)", substitute "paragraph 24G(2)(a) or subsection 24G(3A)". 34 Application of amendments The amendments of the Superannuation (Unclaimed Money and Lost Members) Act 1999 made by this Part apply in relation to payments of amounts made by the Commissioner on or after the commencement of this Part, regardless of when the amounts were received by the Commissioner. Part 2—Contingent amendments Superannuation (Unclaimed Money and Lost Members) Act 1999 35 Section 7 Omit: Superannuation of eligible rollover fund members Superannuation providers who are trustees of eligible rollover funds must, by 30 June 2020 and 30 June 2021, give the Commissioner of Taxation details relating to accounts of those funds. Superannuation providers must pay to the Commissioner of Taxation the value of any such accounts. Payments must be made by 30 June 2020 (for accounts that had balances of less than $6,000 on 1 June 2020) and 30 June 2021 (for all other accounts). Later, the Commissioner must, if satisfied that it is possible to do so, pay an amount the Commissioner has received in respect of a person: (a) to a fund identified by the person; or (b) if the person has reached eligibility age or the amount is less than $200—to the person; or (c) if the person has died—to the person's death beneficiaries or legal personal representative. substitute: Superannuation of eligible rollover fund members Superannuation providers who are trustees of eligible rollover funds must, by 30 June 2020 and 30 June 2021, give the Commissioner of Taxation details relating to accounts of those funds. Superannuation providers must pay to the Commissioner of Taxation the value of any such accounts. Payments must be made by 30 June 2020 (for accounts that had balances of less than $6,000 on 1 June 2020) and 30 June 2021 (for all other accounts). Later, the Commissioner must, if satisfied that it is possible to do so, pay an amount the Commissioner has received in respect of a person: (a) to a fund identified by the person; or (b) to a KiwiSaver scheme provider identified by the person; or (c) if the person has reached eligibility age or the amount is less than $200—to the person; or (d) if the person has died—to the person's death beneficiaries or legal personal representative. 36 After paragraph 21E(2)(a) Insert: (aa) to a single KiwiSaver scheme provider if: (i) the person has not died; and (ii) the person directs the Commissioner to pay to the KiwiSaver scheme provider; and (iii) the matters (if any) prescribed by the regulations are satisfied; or 37 Paragraph 21E(3)(a) Omit "subparagraph (2)(a)(ii) does", substitute "subparagraphs (2)(a)(ii) and (aa)(ii) do". 38 Paragraph 21E(5)(a) After "a fund,", insert "a KiwiSaver scheme provider,". 39 Paragraph 21E(5)(b) After "(2)(a),", insert "(aa),". 40 Subsection 21E(5) After "the fund,", insert "KiwiSaver scheme provider,". 41 Paragraph 21G(1)(a) After "this Part", insert "(other than a payment to a KiwiSaver scheme provider)". 42 Paragraph 21H(1)(a) Omit "subsection 21E(2) or (5)", substitute "paragraph 21E(2)(a) or subsection 21E(5)". 43 Application of amendments The amendments of the Superannuation (Unclaimed Money and Lost Members) Act 1999 made by this Part apply in relation to payments of amounts made by the Commissioner on or after the commencement of this Part, regardless of when the amounts were received by the Commissioner. Schedule 3—Deductible gift recipients Income Tax Assessment Act 1997 1 In the appropriate position in subsection 30‑45(2) (table) Insert: 4.2.48 Neighbourhood Watch Australasia Limited the gift must be made after 30 June 2019 2 Section 30‑315 (after table item 79) Insert: 79A Neighbourhood Watch Australasia Limited item 4.2.48 Endnotes Endnote 1—About the endnotes The endnotes provide information about this compilation and the compiled law. The following endnotes are included in every compilation: Endnote 1—About the endnotes Endnote 2—Abbreviation key Endnote 3—Legislation history Endnote 4—Amendment history Abbreviation key—Endnote 2 The abbreviation key 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 (or will amend) the compiled law. The information includes commencement details for amending laws and details of any 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 (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law. Editorial changes The Legislation Act 2003 authorises First Parliamentary Counsel to make editorial and presentational changes to a compiled law in preparing a compilation of the law for registration. The changes must not change the effect of the law. Editorial changes take effect from the compilation registration date. If the compilation includes editorial changes, the endnotes include a brief outline of the changes in general terms. Full details of any changes can be obtained from the Office of Parliamentary Counsel. Misdescribed amendments A misdescribed amendment is an amendment that does not accurately describe the amendment to be made. If, despite the misdescription, the amendment can be given effect as intended, the amendment is incorporated into the compiled law and the abbreviation "(md)" added to the details of the amendment included in the amendment history. If a misdescribed amendment cannot be given effect as intended, the abbreviation "(md not incorp)" is added to the details of the amendment included in the amendment history. Endnote 2—Abbreviation key ad = added or inserted o = order(s) am = amended Ord = Ordinance amdt = amendment orig = original c = clause(s) par = paragraph(s)/subparagraph(s) C[x] = Compilation No. x /sub‑subparagraph(s) Ch = Chapter(s) pres = present def = definition(s) prev = previous Dict = Dictionary (prev…) = previously disallowed = disallowed by Parliament Pt = Part(s) Div = Division(s) r = regulation(s)/rule(s) ed = editorial change reloc = relocated exp = expires/expired or ceases/ceased to have renum = renumbered effect rep = repealed F = Federal Register of Legislation rs = repealed and substituted gaz = gazette s = section(s)/subsection(s) LA = Legislation Act 2003 Sch = Schedule(s) LIA = Legislative Instruments Act 2003 Sdiv = Subdivision(s) (md) = misdescribed amendment can be given SLI = Select Legislative Instrument effect SR = Statutory Rules (md not incorp) = misdescribed amendment Sub‑Ch = Sub‑Chapter(s) cannot be given effect SubPt = Subpart(s) mod = modified/modification underlining = whole or part not No. = Number(s) commenced or to be commenced Endnote 3—Legislation history Act Number and year Assent Commencement Application, saving and transitional provisions Treasury Laws Amendment (2020 Measures No. 5) Act 2020 118, 2020 11 Dec 2020 Sch 1: 12 Dec 2020 (s 2(1) item 2) Sch 2: 11 Dec 2021 (s 2(1) items 3, 4) Sch 3: 1 Jan 2021 (s 2(1) item 5) Remainder: 11 Dec 2020 (s 2(1) item 1) Endnote 4—Amendment history Provision affected How affected s 2..................... ed C1 Endnote 5—Editorial changes In preparing this compilation for registration, the following kinds of editorial change(s) were made under the Legislation Act 2003. Subsection 2(1) (table item 4, column 2) Kind of editorial change Update to a reference of a law or a provision Details of editorial change This compilation was editorially changed to update a reference from the Treasury Laws Amendment (Reuniting More Superannuation) Act 2020 to the Treasury Laws Amendment (Reuniting More Superannuation) Act 2021 in column 2 of table item 4 of subsection 2(1).