Tax Laws Amendment (2013 Measures No. 2) Act 2013 (Cth)

Tax Laws Amendment (2013 Measures No. 2) Act 2013 No. 124, 2013 Compilation No. 1 Compilation date: 11 July 2013 Includes amendments up to: Act No. 21, 2015 Registered: 2 April 2015 About this compilation This compilation This is a compilation of the Tax Laws Amendment (2013 Measures No. 2) Act 2013 that shows the text of the law as amended and in force on 11 July 2013 (the compilation date). This compilation was prepared on 31 March 2015. 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 ComLaw (www.comlaw.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 ComLaw 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. 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 ComLaw 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 Self‑repealing provisions If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.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 Schedule(s) Schedule 1—Monthly PAYG instalments Part 1—Main amendments Taxation Administration Act 1953 Part 2—Consequential amendments Income Tax Assessment Act 1997 Part 3—Application and transitional provisions Schedule 2—Incentives for designated infrastructure projects Part 1—Main amendments Income Tax Assessment Act 1936 Income Tax Assessment Act 1997 Part 2—Consequential amendments Income Tax Assessment Act 1936 Income Tax Assessment Act 1997 Infrastructure Australia Act 2008 Part 3—Application of amendments Income Tax (Transitional Provisions) Act 1997 Part 4—Miscellaneous amendments Division 1—Income Tax Assessment Act 1936 Division 2—Income Tax Assessment Act 1997 Schedule 5—Tax secrecy and transparency Part 1—Main amendments Taxation Administration Act 1953 Part 2—Consequential amendments Income Tax Assessment Act 1997 Part 3—Application of amendments Schedule 6—Petroleum resource rent tax Petroleum Resource Rent Tax Assessment Act 1987 Schedule 7—Removing CGT discount for foreign individuals Income Tax Assessment Act 1997 Schedule 8—Tax exemption for payments under Defence Abuse Reparation Scheme Income Tax Assessment Act 1997 Schedule 9—GST‑free treatment for National Disability Insurance Scheme funded supports A New Tax System (Goods and Services Tax) Act 1999 Schedule 10—Deductible gift recipients Part 1—Main amendments Income Tax Assessment Act 1997 Tax Laws Amendment (2011 Measures No. 2) Act 2011 Part 2—The Charlie Perkins Scholarship Trust Income Tax Assessment Act 1997 Tax Laws Amendment (Special Conditions for Not‑for‑profit Concessions) Act 2013 Schedule 11—Miscellaneous amendments Part 1—Amendments commencing after the Australian Charities and Not‑for‑profits Commission Act 2012 Income Tax Assessment Act 1997 Income Tax (Transitional Provisions) Act 1997 Part 2—Amendment commencing after Schedule 1 to the Tax Laws Amendment (2012 Measures No. 6) Act 2013 Income Tax Assessment Act 1997 Income Tax (Transitional Provisions) Act 1997 Part 3—Fringe Benefits Tax Fringe Benefits Tax Assessment Act 1986 Taxation Administration Act 1953 Part 4—Updating indexation provisions Income Tax Assessment Act 1997 Superannuation (Government Co‑contribution for Low Income Earners) Act 2003 Superannuation Guarantee (Administration) Act 1992 Part 5—Other amendments Income Tax Assessment Act 1936 Income Tax Assessment Act 1997 Endnotes Endnote 1—About the endnotes Endnote 2—Abbreviation key Endnote 3—Legislation history Endnote 4—Amendment history An Act to amend the law relating to taxation and the Tax Agent Services Act 2009, and for other purposes 1 Short title This Act may be cited as the Tax Laws Amendment (2013 Measures No. 2) Act 2013. 2 Commencement (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms. Commencement information Column 1 Column 2 Column 3 Provision(s) Commencement Date/Details 1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table The day this Act receives the Royal Assent. 29 June 2013 2. Schedule 1 The day this Act receives the Royal Assent. 29 June 2013 3. Schedule 2, Parts 1 to 3 A single day to be fixed by Proclamation. 11 July 2013 However, if the provision(s) do not commence within the period of 6 months beginning on the day this Act receives the Royal Assent, they commence on the day after the end of that period. (see F2013L01359) 4. Schedule 2, Part 4, Division 1 The day this Act receives the Royal Assent. 29 June 2013 5. Schedule 2, Part 4, Division 2 The later of: 11 July 2013 (a) immediately after the commencement of the provision(s) covered by table item 3; and (paragraph (a) applies) (b) the commencement of item 34 of Schedule 6 to the Tax and Superannuation Laws Amendment (2013 Measures No. 1) Act 2013. However, the provision(s) do not commence at all if the event mentioned in paragraph (b) does not occur. 10. Schedules 5 to 9 The day this Act receives the Royal Assent. 29 June 2013 11. Schedule 10, Part 1 The day this Act receives the Royal Assent. 29 June 2013 12. Schedule 10, item 13 The day this Act receives the Royal Assent. 29 June 2013 However, the provision(s) do not commence at all if item 5 of Schedule 1 to the Tax Laws Amendment (Special Conditions for Not‑for‑profit Concessions) Act 2013 commences on or before that day. 13. Schedule 10, item 14 The later of: Does not commence (a) the start of the day this Act receives the Royal Assent; and (b) immediately after the commencement of item 13 of Schedule 1 to the Tax Laws Amendment (Special Conditions for Not‑for‑profit Concessions) Act 2013. However, the provision(s) do not commence at all if the event mentioned in paragraph (b) does not occur. 14. Schedule 10, item 15 Immediately after the commencement of Schedule 1 to the Tax Laws Amendment (Special Conditions for Not‑for‑profit Concessions) Act 2013. Does not commence However, the provision(s) do not commence at all if that Schedule commences before the day this Act receives the Royal Assent. 15. Schedule 11, Part 1 Immediately after the commencement of Chapter 2 of the Australian Charities and Not‑for‑profits Commission Act 2012. 3 December 2012 16. Schedule 11, Part 2 Immediately after the commencement of Schedule 1 to the Tax Laws Amendment (2012 Measures No. 6) Act 2013. 28 June 2013 17. Schedule 11, Part 3 The day after this Act receives the Royal Assent. 30 June 2013 18. Schedule 11, item 28 The later of: 30 June 2013 (paragraph (a) applies) (a) the start of the day after this Act receives the Royal Assent; and (b) immediately after the commencement of item 238 of Schedule 7 to the Tax and Superannuation Laws Amendment (2013 Measures No. 1) Act 2013. However, the provision(s) do not commence at all if the event mentioned in paragraph (b) does not occur. 19. Schedule 11, items 29 to 31 The day after this Act receives the Royal Assent. 30 June 2013 20. Schedule 11, subitem 32(1) The later of: 30 June 2013 (a) the start of the day after this Act receives the Royal Assent; and (paragraph (a) applies) (b) immediately after the commencement of item 238 of Schedule 7 to the Tax and Superannuation Laws Amendment (2013 Measures No. 1) Act 2013. However, the provision(s) do not commence at all if the event mentioned in paragraph (b) does not occur. 21. Schedule 11, subitems 32(2) and (3) The day after this Act receives the Royal Assent. 30 June 2013 22. Schedule 11, Part 5 The day after this Act receives the Royal Assent. 30 June 2013 Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act. (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act. 3 Schedule(s) Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms. Schedule 1—Monthly PAYG instalments Part 1—Main amendments Taxation Administration Act 1953 1 Section 45‑1 in Schedule 1 Omit: Generally, instalments are payable for each quarter of your income year. substitute: Generally, instalments are payable for each quarter of your income year. Alternatively, instalments could be payable monthly or annually. 2 Section 45‑1 in Schedule 1 Omit: If you are not required to be registered for GST purposes, you may be able to choose to pay an annual instalment after the end of the income year. (In this case, you are an annual payer). substitute: If your business or investment income exceeds a certain limit, you may have to pay an instalment after the end of each month. (In this case, you are a monthly payer). If you are not required to be registered for GST purposes, you may be able to choose to pay an annual instalment after the end of the income year. (In this case, you are an annual payer). 3 After subsection 45‑5(2) in Schedule 1 Insert: (2A) Alternatively: (a) you may be required to pay instalments after the end of each *instalment month worked out on the basis of your instalment income for that month; or (b) you may be able to choose to pay an annual instalment for the income year. 4 After subsection 45‑5(5) in Schedule 1 Insert: (5A) If you are a *monthly payer, the amount of each of your instalments for an income year is the same proportion (as nearly as possible, subject to the principles in subsections (3) and (4)) of the total of those instalments as your *instalment income for that *instalment month is of your total instalment income for the income year. 5 After subsection 45‑20(2) in Schedule 1 Insert: (2A) If you are a *monthly payer for the period, you must give the notification electronically, unless the Commissioner otherwise approves. Note: A penalty applies if you fail to give the notification electronically as required—see section 288‑10. (2B) The notification is given electronically if it is transmitted to the Commissioner in an electronic format approved by the Commissioner. 6 After subsection 45‑50(2) in Schedule 1 Insert: (2A) Subject to subsection (4), you are liable to pay an instalment for an *instalment month if, at the end of that month, you are a *monthly payer. 7 Subsection 45‑50(4) in Schedule 1 After "an *instalment quarter", insert ", an *instalment month". 8 Paragraph 45‑50(4)(b) in Schedule 1 After "quarter", insert ", month". 9 After section 45‑61 in Schedule 1 Insert: 45‑65 Meaning of instalment month For an income year (whether it ends on 30 June or not), the following are instalment months: (a) the month that starts on the first day of the income year; (b) each subsequent month. Note: For the meaning of month, see section 2G of the Acts Interpretation Act 1901. 45‑67 When monthly instalments are due—payers of monthly instalments You are not a deferred BAS payer (1) If you are a *monthly payer, the instalment for an *instalment month that you are liable to pay is due on or before the 21st day of the next instalment month. (2) If: (a) subsection (1) would, but for this subsection, have applied to you in relation to an *instalment month; but (b) you are a *deferred BAS payer on the 21st day of the next instalment month; the instalment for the month mentioned in paragraph (a) is instead due on or before: (c) the 28th day of that next instalment month unless that next instalment month is January; or (d) if that next instalment month is January—the next 28 February. Note: If you are the head company of a consolidated group to which Subdivision 45‑Q applies, the instalment is due on or before the 21st day of that next month: see section 45‑715 (as it has effect because of section 45‑703). 10 After section 45‑70 in Schedule 1 Insert: 45‑72 Means of payment of instalment You must pay an instalment by *electronic payment, or any other means approved in writing by the Commissioner. 11 After section 45‑112 in Schedule 1 Insert: 45‑114 How to work out amount of monthly instalment (1) Work out the amount of an instalment you are liable to pay for an *instalment month as follows if, at the end of that instalment month, you are a *monthly payer: (2) For the purposes of the formula in subsection (1): applicable instalment rate means: (a) unless paragraph (b) or (c) applies—the most recent instalment rate given to you by the Commissioner under section 45‑15 before the end of that month; or (b) if you have chosen an instalment rate for that month under section 45‑205—that rate; or (c) if you have chosen an instalment rate under section 45‑205 for an earlier *instalment month in that income year (and paragraph (b) does not apply)—that rate. Note: If you believe the Commissioner's rate is not appropriate for the current income year, you may choose a different instalment rate under Subdivision 45‑F. (3) The Commissioner may, by legislative instrument, determine one or more specified additional methods by which a specified class of entity that is a *monthly payer at the end of an *instalment month may work out, in specified circumstances, the amount of an instalment that it is liable to pay for the instalment month. Note: For specification by class, see subsection 13(3) of the Legislative Instruments Act 2003. (4) You may choose a method specified in the determination: (a) unless paragraph (b) applies—for any *instalment month; or (b) if the determination provides that that method can be chosen only for the first instalment month in an *instalment quarter—for the first instalment month in an instalment quarter. (5) The determination may provide that an entity that chooses a method in accordance with paragraph (4)(b) for the first *instalment month in an *instalment quarter is taken to have chosen that method under subsection (4) for the other instalment months in that quarter. The determination has effect accordingly. (6) Subsection (7) applies if: (a) the Commissioner has made a determination under subsection (3); and (b) at the end of an *instalment month, you are a *monthly payer; and (c) you choose under subsection (4), for that month: (i) if the determination specifies one additional method to work out that amount—that method; or (ii) if the determination specifies more than one additional method to work out that amount—one of those methods. (7) Despite subsection (1), work out the amount of an instalment you are liable to pay for that *instalment month in accordance with the method that you chose for that month under subsection (4). 12 Paragraph 45‑125(1)(a) in Schedule 1 Omit "you are not an *annual payer", substitute "you are not a *monthly payer or an *annual payer". 13 Subsection 45‑125(5) in Schedule 1 Repeal the subsection, substitute: How and when you stop being such a payer (5) If you are a *quarterly payer who pays on the basis of instalment income because of paragraph (1)(a), you stop being such a payer at the start of the first *instalment quarter in the next income year if: (a) at the end of that quarter, you become: (i) a quarterly payer who pays on the basis of GDP‑adjusted notional tax; or (ii) an *annual payer; or (b) at the end of the first *instalment month of that quarter, you become a *monthly payer. No quarterly payer status in quarter if monthly payer in following month (5A) Despite subsections (1) and (3), you cannot be a *quarterly payer who pays on the basis of instalment income at a time in an *instalment quarter if you are a *monthly payer at a time in the first *instalment month that ends after that quarter. 14 Paragraph 45‑130(1)(a) in Schedule 1 Omit "an *annual payer or a *quarterly payer", substitute "an *annual payer, a *monthly payer or a *quarterly payer". 15 After subparagraph 45‑130(1)(c)(ii) in Schedule 1 Insert: (iia) you are not a *monthly payer; 16 Subsection 45‑130(4) in Schedule 1 Repeal the subsection, substitute: (4) In addition, you stop being such a payer at the start of the first *instalment quarter in the next income year if: (a) at the end of that quarter, you become: (i) a *quarterly payer who pays on the basis of instalment income; or (ii) an *annual payer; or (b) at the end of the first *instalment month of that quarter, you become a *monthly payer. No quarterly payer status in quarter if monthly payer in following month (5) Despite subsections (1) and (2), you cannot be a *quarterly payer who pays on the basis of GDP‑adjusted notional tax at a time in an *instalment quarter if you are a *monthly payer at a time in the first *instalment month that ends after that quarter. 17 Subsection 45‑132(4) in Schedule 1 Repeal the subsection, substitute: (4) In addition, you stop being such a payer at the start of the first *instalment quarter in the next income year if: (a) at the end of that quarter, you become: (i) a *quarterly payer who pays on the basis of instalment income; or (ii) an *annual payer; or (b) at the end of the first *instalment month of that quarter, you become a *monthly payer. 18 Subsection 45‑134(4) in Schedule 1 Repeal the subsection, substitute: (4) In addition, you stop being such a payer at the start of the first *instalment quarter in the next income year if: (a) at the end of that quarter, you become: (i) a *quarterly payer who pays on the basis of instalment income; or (ii) an *annual payer; or (b) at the end of the first *instalment month of that quarter, you become a *monthly payer. 19 After Subdivision 45‑D in Schedule 1 Insert: Subdivision 45‑DA—Monthly payers Table of sections 45‑136 Monthly payer 45‑138 Monthly payer requirement 45‑136 Monthly payer (1) You are a monthly payer at a time if: (a) you were a monthly payer immediately before that time; or (b) if paragraph (a) does not apply—you satisfy the requirement in subsection 45‑138(1) for the income year in which that time occurs. Note: If paragraph (b) applies, see subsection (3) for the time at which you become a monthly payer. (2) The starting instalment month in an income year (the current year) is: (a) if the Commissioner gives you an instalment rate for the first time during an *instalment month in the current year—the next instalment month in the current year; or (b) if the Commissioner has given you an instalment rate during a previous income year and your instalment rate has not been withdrawn—the first instalment month in the current year. How and when you become such a payer (3) Despite subsection (1), if paragraph (1)(b) applies, you become a *monthly payer just before the end of the *starting instalment month in the income year. How and when you stop being such a payer (4) Despite subsection (1), you stop being a *monthly payer at the start of the first *instalment month in a later income year if: (a) you do not satisfy the requirement in subsection 45‑138(1) for that later income year; and (b) you give the Commissioner a notice (the MP stop notice) in the *approved form for that later income year before the start of that later income year. 45‑138 Monthly payer requirement (1) You satisfy the requirement in this subsection for an income year if at the start of your *MPR test day for that income year, your base assessment instalment income (within the meaning of section 45‑320) for the *base year equals or exceeds: (a) $20 million; or (b) if regulations made for the purposes of this paragraph specify a different amount—that amount. (2) However, you do not satisfy the requirement in subsection (1) for an income year if, at the start of your *MPR test day for that income year: (a) you have (or, if you are a *member of a *GST group, the *representative member of the GST group has) an obligation to give the Commissioner a *GST return for a quarterly *tax period; and (b) you are not the *head company of a *consolidated group nor the *provisional head company of a *MEC group; and (c) your base assessment instalment income (within the meaning of section 45‑320) for the *base year is less than $100 million. (3) For the purposes of subsections (1) and (2), at the start of an entity's *MPR test day: (a) determine the amount of the entity's base assessment instalment income (within the meaning of section 45‑320) for the *base year only on the basis of the information provided by the Commissioner to the entity before that start of that day; and (b) in determining on that day whether an entity has an obligation mentioned in paragraph (2)(a), disregard any creation or removal of such an obligation after that day (even if that change is made retrospective to that day). (4) An entity's MPR test day for an income year is: (a) if the Commissioner gives the entity an instalment rate for the first time during an *instalment month in the income year—the last day of that month; or (b) otherwise—the first day of the third last month of the previous income year. (5) Subsection (6) applies if, disregarding that subsection, an entity does not satisfy the requirement in subsection (1) for an income year. (6) For the purposes of this section, in determining the entity's base assessment instalment income (within the meaning of section 45‑320) for the *base year: (a) disregard subsection 45‑120(2C); and (b) disregard paragraph (3)(a) of this section, to the extent that that paragraph relates to the operation of subsection 45‑120(2C). (7) If, because of subsection (6), the entity satisfies the requirement in subsection (1) for an income year, the entity must give the Commissioner a notice in the *approved form in respect of that income year before: (a) if the *starting instalment month in the income year is determined under paragraph 45‑136(2)(a)—the end of that starting instalment month; or (b) if the starting instalment month in the income year is determined under paragraph 45‑136(2)(b)—the start of that starting instalment month. 20 Subdivision 45‑F in Schedule 1 (heading) Repeal the heading, substitute: Subdivision 45‑F—Varying the instalment rate for quarterly or monthly payers who pay on the basis of instalment income 21 Section 45‑200 in Schedule 1 Before "This", insert "(1)". 22 At the end of section 45‑200 in Schedule 1 Add: (2) If you are a *monthly payer, this Subdivision has effect in relation to you in respect of an *instalment month in the same way in which it has effect in relation to a *quarterly payer in respect of an *instalment quarter. 23 At the end of section 45‑205 in Schedule 1 Add: (5) Subsection (6) applies if you are a monthly payer. (6) Treat the references in subsections (1) and (4) to section 45‑110 as instead being references to section 45‑114. 24 Before section 45‑230 in Schedule 1 Insert: 45‑225 Effect of Subdivision in relation to monthly payers If you are a *monthly payer, this Subdivision has effect in relation to you in respect of an *instalment month in the same way in which it has effect in relation to a *quarterly payer in respect of an *instalment quarter. 25 After section 45‑595 in Schedule 1 Insert: 45‑597 Effect of Subdivision in relation to instalment months This Subdivision has effect in relation to an *instalment month in the same way in which it has effect in relation to an *instalment quarter. 26 Before section 45‑705 in Schedule 1 Insert: 45‑703 Effect of this Subdivision and Subdivision 45‑R in relation to monthly payers (1) If: (a) a company is the *head company of a *consolidated group; and (b) the company is a *monthly payer; this Subdivision and Subdivision 45‑R have effect in relation to the company as the head company of the group in respect of an *instalment month in the same way in which they have effect in relation to a company that is a *quarterly payer as the head company of a consolidated group in respect of an *instalment quarter. (2) If: (a) an entity is a *subsidiary member of a *consolidated group; and (b) the entity is a *monthly payer; this Subdivision and Subdivision 45‑R have effect in relation to the entity in respect of an *instalment month in the same way in which they have effect in relation to an entity that is a *quarterly payer in respect of an *instalment quarter. (3) However, those effects are subject to any modifications set out in those Subdivisions. Note: Subdivision 45‑S can also have effect in relation to a monthly payer because of the operation of this section and section 45‑910. 27 After subsection 45‑705(4) in Schedule 1 Insert: When the period begins—modified timing for head company that is monthly payer (4A) Subsection (4B) applies if: (a) apart from subsection (4B), this Subdivision starts to apply to a company as the *head company of a *consolidated group at a particular time because of the operation of subsection (2), (3) or (4); and (b) the company is a *monthly payer; and (c) the Commissioner gave the *initial head company instalment rate as mentioned in subsection (2), subparagraph (3)(c)(ii), subparagraph (4)(d)(ii) or subparagraph (4)(d)(iv) in an *instalment month. (4B) Treat subsection (2), (3) or (4) (as the case requires) as providing that this Subdivision starts to apply to the company as the *head company of the group at the start of the next *instalment month. Note: For the application of this Subdivision to a monthly payer, see section 45‑703. 28 Section 45‑715 in Schedule 1 Before "If", insert "(1)". 29 At the end of section 45‑715 in Schedule 1 Add: (2) Subsection (3) applies if section 45‑703 applies to the *head company of the *consolidated group (because it is a *monthly payer). (3) Treat the reference in subsection (1) to subsection 45‑61(2) as instead being a reference to subsection 45‑67(2). 30 Paragraph 45‑860(1)(b) in Schedule 1 Omit "ends before the end", substitute "starts before the start". 31 At the end of section 45‑870 in Schedule 1 Add: (5) Subsections (6) and (7) apply if: (a) the *head company of the *consolidated group is a *monthly payer at a time in an *instalment month (the current month); and (b) any of the other *members of the group (the subsidiary quarterly payers) are *quarterly payers at a time in the *instalment quarter (the c