Commonwealth Consolidated Acts Commonwealth Consolidated Acts
Income Tax Assessment Act 1997
1 Section 10 - 5 (after table item dealing with partnerships)
Insert:
payments to members of copyright collecting societies |
|
payments by copyright collecting societies .......... | 15 - 22 |
2 Section 11 - 15 (before table item dealing with credit unions)
Insert:
copyright collecting societies |
|
copyright income ........................... | 51 - 43(2)(a) |
non - copyright income up to certain limits ..... | 51 - 43(2)(b) |
3 Section 15 - 20
Before "Your", insert "(1)".
4 At the end of section 15 - 20
Add:
(2) Subsection (1) does not apply to an amount of a payment to which section 15 - 22 applies.
5 After section 15 - 20
Insert:
15 - 22 Payments made to members of a copyright collecting society
(1) This section, instead of Division 6 of Part III of the Income Tax Assessment Act 1936 , applies to a payment that a * copyright collecting society, to which section 51 - 43 applies, makes to you as a * member of the society.
(2) Your assessable income includes the amount of the payment, except to the extent that the payment represents an amount on which the directors of the society are or have been assessed, and are liable to pay tax, under section 98, 99 or 99A of the Income Tax Assessment Act 1936 .
Note: Section 410 - 5 of this Act requires a copyright collecting society to give you a notice at the time of payment.
6 After section 51 - 40
Insert:
51 - 43 Income collected or derived by a copyright collecting society
(1) This section applies to a * copyright collecting society if Division 6 of Part III of the Income Tax Assessment Act 1936 applies to the income of the society.
(2) The following are exempt from income tax:
(a) * copyright income collected or * derived by the society in an income year;
(b) * non - copyright income derived by the society in an income year to the extent that it does not exceed the lesser of:
(i) 5% of the total amount of the copyright income and non - copyright income collected and derived by the society in the income year; and
(ii) $5 million or such other amount as is prescribed by the regulations for the purposes of this subparagraph.
7 Section 405 - 50 (link note)
Repeal the link note, substitute:
Division 410 -- Copyright collecting societies
410 - 1 What this Division is about
This Division sets out rules that apply whenever a copyright collecting society to which section 51 - 43 applies makes a payment to a member of the society.
Table of sections
Operative provision
410 - 5 Copyright collecting society must give a notice to a member of the society
410 - 5 Copyright collecting society must give a notice to a member of the society
(1) This section applies to a * copyright collecting society to which section 51 - 43 applies.
(2) If the society makes a payment to a * member of the society, the society must give the member a notice, in writing, that states:
(a) the name of the society and the member; and
(b) the total amount of the payment; and
(c) the amount of the payment on which the directors of the society are or have been assessed, and are liable to pay tax, under section 98, 99 or 99A of the Income Tax Assessment Act 1936 ; and
(d) the amount of the payment that is to be included in the member's assessable income under section 15 - 22 of this Act.
Note 1: Under section 288 - 75 in Schedule 1 to the Taxation Administration Act 1953 a society is liable to an administrative penalty for failing to give a notice required under this section.
Note 2: The amount mentioned in paragraph (2)(c) is not included in the member's assessable income--see section 15 - 22.
(3) The society must give the notice at the time of the payment.
8 Subsection 995 - 1(1)
Insert:
"copyright collecting society" means either of the following bodies:
(a) a body that satisfies all of the following conditions:
(i) a declaration under the Copyright Act 1968 is in force in respect of the body;
(ii) the body is a company whose * constitution contains provisions about the distribution of amounts collected or * derived by it, including a requirement that a * member of the society cannot direct the body to pay an amount at a particular time;
(iii) other conditions prescribed by the regulations (if any) for the purposes of this subparagraph are met;
(b) a company that satisfies all of the following conditions:
(i) the company is incorporated under a law in force in a State or Territory relating to companies;
(ii) the company has and maintains the purpose of collective administration of copyrights;
(iii) if the company has other purposes--these purposes are incidental to the purpose described in subparagraph (ii);
(iv) the company collects or derives, and distributes, * copyright income;
(v) the company's constitution allows any copyright owner, or his or her agent, to be a member of the society, or allows all copyright owners of a particular type to be members;
(vi) the company's constitution prohibits the payment of * dividends;
(vii) the company's constitution contains provisions about the payment, out of amounts collected or derived by it, of the administrative costs of collecting those amounts;
(viii) the company's constitution contains provisions about the distribution of amounts collected or derived by it, including a requirement that an amount must be paid to a member as soon as is reasonably possible after the allocation of the amount to the member, as well as a requirement that a member cannot direct the company to pay an amount at a particular time;
(ix) the company's constitution, or contracts with members, contains such other provisions as are prescribed by the regulations (if any), being provisions necessary to ensure that the interests of members or their agents are protected adequately;
(x) the company's constitution requires the company to hold amounts on trust for copyright owners who are not members, or for members pending the payment of amounts to them;
(xi) the company's constitution, or contracts with members, allows all members to access the company's records;
(xii) other conditions prescribed by the regulations (if any) for the purposes of this subparagraph are met.
9 Subsection 995 - 1(1)
Insert:
"copyright income" of a * copyright collecting society means * ordinary income, or * statutory income, of the following kinds:
(a) * royalties, and interest on royalties, collected or * derived by the society;
(b) such other amounts relating to copyright that are derived by the society as are prescribed by the regulations for the purposes of this paragraph.
10 Subsection 995 - 1(1)
Insert:
"member" of a * copyright collecting society means:
(a) any person who has been admitted as a member under the society's * constitution; or
(b) any person who has authorised the society to license the use of his or her copyright material.
11 Subsection 995 - 1(1)
Insert:
"non-copyright income" of a * copyright collecting society means * ordinary income and * statutory income derived by the society, but does not include * copyright income.
Income Tax (Transitional Provisions) Act 1997
12 Section 405 - 1 (link note)
Repeal the link note, substitute:
Division 410 -- Copyright collecting societies
Table of sections
410 - 1 Application of section 51 - 43 of the Income Tax Assessment Act 1997
410 - 1 Application of section 51 - 43 of the Income Tax Assessment Act 1997
(1) A copyright collecting society to which section 51 - 43 of the Income Tax Assessment Act 1997 applies, may elect that, from 1 July 2004, the section apply to all copyright income, and non - copyright income, collected or derived by the society on or after 1 July 2004.
(2) A society makes a valid election if:
(a) the election is in writing; and
(b) the election is given to the Commissioner within 28 days after the day on which this section commences.
Taxation Administration Act 1953
13 At the end of Division 288 of Part 4 - 25 in Schedule 1 (before the link note)
Add:
288 - 75 Administrative penalty for a copyright collecting society
A * copyright collecting society is liable to an administrative penalty of 20 penalty units if the society fails to give a notice to a * member as required by section 410 - 5 of the Income Tax Assessment Act 1997 .
Note: See section 4AA of the Crimes Act 1914 for the current value of a penalty unit.
14 Application
(1) The amendments made by items 1 to 6 and 8 to 11 of this Schedule apply to copyright income, and non - copyright income, collected or derived by a copyright collecting society on or after 1 July 2002, unless the society has made an election in accordance with section 410 - 1 of the Income Tax (Transitional Provisions) Act 1997 .
Note: If the society has made an election, then from 1 July 2004, the amendments listed above apply to all copyright income, and non - copyright income, collected or derived by the society on or after 1 July 2004.
(2) The amendments made by items 7 and 13 of this Schedule apply to payments of copyright income or non - copyright income made by a copyright collecting society in an income year after the income year in which this item commences.