Commonwealth Consolidated Acts

TAX LAWS AMENDMENT (2009 MEASURES NO. 5) ACT 2009 - SCHEDULE 2

Part   1 -- Amendment commencing on Royal Assent

Taxation Administration Act 1953

1   Subsection 45 - 120(2B) in Schedule   1

Repeal the subsection   ( including the heading).

2   Application

The amendment made by this Part applies to you for the first applicable income year (within the meaning of item   102 of Schedule   1 to the Tax Laws Amendment (Taxation of Financial Arrangements) Act 2009 ) and later income years.

3   Transitional

(1)   This item applies to you if:

  (a)   you are a quarterly payer who pays on the basis of instalment income at the end of the first instalment quarter ending after the commencement of this item; and

  (b)   an amount is included in your instalment income under subsection 45 - 120(2B) in Schedule   1 to the Taxation Administration Act 1953 (disregarding the amendment made by this Part) for an instalment quarter starting on or after 1   July 2009 and ending before the commencement of this item.

(2)   For each instalment quarter mentioned in paragraph   ( 1)(b), work out:

  (a)   your instalment income for the quarter (taking into account the amendment made by this Part); and

  (b)   your instalment income for the quarter (disregarding the amendment made by this Part).

(3)   Next:

  (a)   work out the total of every amount worked out under paragraph   ( 2)(a); and

  (b)   work out the total of every amount worked out under paragraph   ( 2)(b); and

  (c)   subtract the amount worked out under paragraph   ( b) of this subitem from the amount worked out under paragraph   ( a) of this subitem.

(4)   If the amount worked out under paragraph   ( 3)(c) is more than nil, increase your instalment income for the first instalment quarter ending after the commencement of this item by that amount.

Part   2 -- Amendment commencing immediately after Royal Assent

Taxation Administration Act 1953

4   After subsection 45 - 120(2A) in Schedule   1

Insert:

Net gains under Subdivision   250 - E of the Income Tax Assessment Act 1997 included in instalment income

  (2B)   Your instalment income for a period also includes the difference between:

  (a)   a gain (or gains) you make from a * financial arrangement to the extent to which it is (or they are):

  (i)   assessable under Subdivision   250 - E of the Income Tax Assessment Act 1997 ; and

  (ii)   reasonably attributable to that period; and

  (b)   a loss (or losses) you make from a financial arrangement to the extent to which it is (or they are):

  (i)   allowable to you as a deduction under Subdivision   250 - E of the Income Tax Assessment Act 1997 ; and

  (ii)   reasonably attributable to that period.

This is so only if the gain (or gains) referred to in paragraph   ( a) exceeds the loss (or losses) referred to in paragraph   ( b).

5   Application

The amendment made by this Part applies to you for the first applicable income year (within the meaning of item   102 of Schedule   1 to the Tax Laws Amendment (Taxation of Financial Arrangements) Act 2009 ) and later income years.