TAX LAWS AMENDMENT (2010 MEASURES NO. 1) ACT 2010 - SCHEDULE 6 Miscellaneous amendments

118 - 147 Absence from dwelling replacing main residence that was compulsorily acquired, destroyed etc.

1 After subsection 118 - 145(3)

Insert:

(3A) This section does not apply if the * dwelling was your main residence because of section 118 - 147 and ceases to be your main residence because of subsections 118 - 147(3) and (4).

2 After section 118 - 145

Insert:

(1) This section applies if:

(a) a * dwelling (the old dwelling ) is treated as your main residence because of your choice under section 118 - 145; and

(b) because of an event (the key event ) described in subsection 124 - 70(1):

(i) you cease to have any * ownership interest in the old dwelling; or

(ii) the old dwelling is lost or destroyed; and

(i) a dwelling (the substitute dwelling ); or

(ii) land (the substitute land ) that did not have a dwelling on it at the later of the time just after the key event and the time you * acquired the interest; and

(d) you acquired the substitute property interest at a time (the substitute property acquisition time ) no later than one year, or within such further time as the Commissioner allows in special circumstances, after the end of the income year in which the key event happens.

Note 1: Subsection 124 - 70(1) deals with compulsory acquisitions, disposals in circumstances involving powers of compulsory acquisition, expiry of leases granted by Australian government agencies and loss or destruction of a CGT asset.

Note 2: The substitute property acquisition time may be before, at or after the time the key event happened. The old dwelling and the substitute dwelling may be different or the same. The land on which the old dwelling is erected and the substitute land may be different or the same.

(2) You may choose to treat the substitute dwelling, or a * dwelling you built on the substitute land within 4 years after the later of the time of the key event and the substitute property acquisition time, as your main residence from the later of the following times (or from either of them if they are the same):

(a) the substitute property acquisition time;

(b) the time one year before the key event happened.

(3) Subsection (4) limits the time you can treat a * dwelling as your main residence under this section if you use all or part of it or the substitute land, after the later of the key event and the substitute property acquisition time, for the * purpose of producing assessable income.

(4) The maximum period you can treat the * dwelling that way while you use it or the substitute land as described in subsection (3) is:

(a) 6 years; or

(b) if, just before the key event, you used all or part of the old dwelling for that purpose--so much of the period of 6 years described in subsection 118 - 145(2) in relation to the old dwelling as had not passed before the event.

(5) If you do not use the * dwelling or substitute land as described in subsection (3) you can treat the dwelling as your main residence under this section indefinitely.

(6) If you make the choice:

(a) you cannot treat any other * dwelling as your main residence while you apply this section; and

(b) section 118 - 140 does not apply in relation to your * acquisition, while you still have an * ownership interest in the old dwelling, of an ownership interest in the dwelling you choose to treat as your main residence under this section; and

(c) section 118 - 150 does not apply after the key event to the land on which the old dwelling is erected or the substitute land; and

(d) section 118 - 155 does not apply after the key event in relation to the old dwelling, the substitute dwelling or a dwelling built on the substitute land.

(7) Paragraph (6)(a) does not prevent the old dwelling from being your main residence at any time before the key event happened.

3 Paragraph 118 - 150(3)(a)

After "residence", insert "(except because of section 118 - 147)".

4 After subsection 118 - 190(3)

Insert:

(3A) Also, you ignore any use of the * dwelling for the * purpose of producing assessable income during any period that you treat it as your main residence under section 118 - 147 (about absences) to the extent that any part of the old dwelling mentioned in that section was not used for that purpose just before the old dwelling last ceased to be your main residence.

5 At the end of paragraph 118 - 200(4)(b)

Add "or (3A)".

6 Application provision

Section 118 - 147 of the Income Tax Assessment Act 1997 applies in relation to CGT events happening on or after the day this Act receives the Royal Assent in relation to dwellings described in subsection (2) of that section (whether the key events described in that section happen before, on or after that day).

Part 2 -- Small business retirement exemption

Division 1--Main amendment

Division 2--Related amendments

7 Paragraph 152 - 310(2)(a)

Omit "exempt from income tax for", substitute "not assessable income, and is not * exempt income, of".

8 Application provision

The amendment of paragraph 152 - 310(2)(a) of the Income Tax Assessment Act 1997 made by this Division applies in relation to payments made after 30 June 2007.

Part 3 -- Waiver connected with proceeds of crime proceedings

9 Section 11 - 15 (table item headed "small business retirement exemption")

Repeal the item.

10 Section 11 - 55 (table item headed "capital gains tax")

Repeal the item, substitute:

capital gains tax
small business retirement exemption, payments made directly or indirectly to CGT concession stakeholder so company or trust complies with section 152 - 325	152 - 310

11 Section 12 - 5 (table item headed " capital gains ")

After:

no deduction for an amount that would otherwise be deductible only because a net capital gain is included in assessable income

51AAA

insert:

small business retirement exemption, no deduction for payments made directly or indirectly to CGT concession stakeholder so company or trust complies with section 152 - 325

152 - 310

Division 340 -- Commissioner's power in cases of hardship

12 Division 340 in Schedule 1 (heading)

Repeal the heading, substitute:

13 At the end of Part 4 - 50 in Schedule 1

Add:

Division 342 -- Commissioner's power relating to proceeds of crime proceedings

Table of Subdivisions

Guide to Division 342

342 - A Power to waive right to payment of tax - related liabilities

Guide to Division 342

342 - 1 What this Division is about

To facilitate the starting, conduct and ending of proceedings under the Proceeds of Crime Act 2002 , the Commissioner may waive the right to payment of certain tax - related liabilities.

Subdivision 342 - A -- Power to waive right to payment of tax - related liabilities

Table of sections

342 - 5 Object of this Subdivision

342 - 10 Power to waive right to payment of tax - related liability

342 - 5 Object of this Subdivision

The object of this Subdivision is to facilitate the starting, conduct and ending of proceedings under the Proceeds of Crime Act 2002 by allowing the Commissioner to waive the right to payment of certain liabilities to the Commonwealth arising under * taxation laws.

Note: The Commissioner may also exercise other powers so as to facilitate the starting, conduct and ending of proceedings under the Proceeds of Crime Act 2002 . Examples of those other powers include:

(a) the power under section 255 - 10 to defer the time a tax - related liability is due and payable; and

(b) the power under section 8AAG to remit general interest charge.

342 - 10 Power to waive right to payment of tax - related liability

(1) The Commissioner may waive the Commonwealth's right to payment of all or part of a * tax - related liability if the Commissioner is satisfied that:

(a) the waiver will facilitate the starting, conduct or ending (by settlement or otherwise) of proceedings under the Proceeds of Crime Act 2002 ; and

(b) the liability is connected with circumstances associated with the proceedings.

Note: The Commissioner may waive the right to payment only after the liability has arisen, but may do so whether or not the liability is due and payable.

Example: A liability is connected with circumstances associated with the proceedings if the liability arose because of activities constituting an offence to which the proceedings relate.

(2) In deciding whether to waive the right, the Commissioner must consider:

(a) the amount the Commonwealth will forgo as a result of the waiver and the time the Commonwealth could reasonably be expected to receive that amount apart from the waiver; and

(b) the amount the Commonwealth could reasonably be expected to receive as a result of the proceedings and the time the Commonwealth could reasonably be expected to receive that amount.

(3) Subsection (2) does not limit the matters that the Commissioner may consider in making the decision.

Extended operation of this section

(4) This section (except this subsection) applies in relation to a pecuniary liability to the Commonwealth that arises directly under a * taxation law, but is not a * tax - related liability, in the same way as this section applies in relation to a tax - related liability.

Example: This section applies to a civil penalty under Division 290 (which penalises certain conduct involving promotion of schemes) in the same way as this section applies to a tax - related liability.

14 Application provision

(1) Division 342 in Schedule 1 to the Taxation Administration Act 1953 applies in relation to:

(a) proceedings started, or proposed to be started, on or after the commencement of that Division; and

(b) proceedings started, and not ended, before that commencement.

That Division applies whether the liability was incurred before, on or after that commencement.

(2) For the purposes of paragraph (1)(b), proceedings are taken not to have ended before that commencement if any appeal relating to the proceedings has not ended, or a period for lodging an appeal relating to the proceedings has not ended, before that commencement.

Part 4 -- Amendments relating to higher education

A New Tax System (Goods and Services Tax) Act 1999

15 Section 195 - 1 (definition of higher education institution )

Repeal the definition, substitute:

"higher education institution" means an entity that is a higher education provider as defined in section 16 - 1 of the Higher Education Support Act 2003 .

Fringe Benefits Tax Assessment Act 1986

16 Section 135M (first paragraph)

Omit "the Higher Education Funding Act 1988 or".

17 Subsection 82A(2) (paragraphs (a), (ab) and (b) of the definition of expenses of self - education )

Repeal the paragraphs.

18 Application provision

The amendment of section 82A of the Income Tax Assessment Act 1936 made by this Part applies in relation to assessments for the income year in which this Act receives the Royal Assent and later income years.

19 Paragraphs 26 - 20(1)(a), (b) and (c)

Repeal the paragraphs.

20 Application provision

The amendment of subsection 26 - 20(1) of the Income Tax Assessment Act 1997 made by this Part applies in relation to assessments for the income year in which this Act receives the Royal Assent and later income years.

21 Subsection 30 - 25(1) (cell at table item 2.1.3, column headed "Fund, authority or institution")

Repeal the cell, substitute:

a charitable or public institution that is a higher education provider within the meaning of the Higher Education Support Act 2003

22 Subsection 30 - 25(1) (cell at table item 2.1.6, column headed "Fund, authority or institution")

Repeal the cell, substitute:

a residential educational institution that is affiliated with a charitable or public institution that is a higher education provider within the meaning of the Higher Education Support Act 2003

23 Application provision

The amendments of subsection 30 - 25(1) of the Income Tax Assessment Act 1997 made by this Part apply in relation to gifts made on or after the day this Act receives the Royal Assent.

24 Subparagraph 52 - 132(a)(x)

Repeal the subparagraph.

25 Subparagraph 52 - 140(3)(a)(x)

Repeal the subparagraph.

26 Application provision

The amendments of sections 52 - 132 and 52 - 140 of the Income Tax Assessment Act 1997 made by this Part apply in relation to payments received on or after the day this Act receives the Royal Assent.

Taxation (Interest on Overpayments and Early Payments) Act 1983

27 Section 8AAZA (definition of HEC assessment debt )

Repeal the definition.

28 Paragraph 8AAZLD(a)

Repeal the paragraph.

Note: The heading to section 8AAZLD is altered by omitting " HEC and ".

29 Paragraph 8AAZLD(aa)

Omit "secondly,", substitute "first,".

30 Paragraph 11 - 1(c) in Schedule 1

Repeal the paragraph.

31 Subsection 15 - 25(1) in Schedule 1

Omit "(c),".

32 Paragraph 15 - 30(c) in Schedule 1

Repeal the paragraph.

33 Paragraph 15 - 50(1)(b) in Schedule 1

Omit "(c),".

34 Paragraph 45 - 5(1)(c) in Schedule 1

Repeal the paragraph.

35 Section 45 - 340 in Schedule 1 (method statement, step 3)

Omit "an accumulated HEC debt under the Higher Education Funding Act 1988 , or an * accumulated HELP debt under the Higher Education Support Act 2003 ,", substitute "an * accumulated HELP debt".

36 Section 45 - 375 in Schedule 1 (method statement, step 3)

Omit "an accumulated HEC debt under the Higher Education Funding Act 1988 , or an * accumulated HELP debt under the Higher Education Support Act 2003 ,", substitute "an * accumulated HELP debt".

37 Subsection 3(1) (definition of HEC assessment debt )

Repeal the definition.

38 Section 3C (table item 40)

Repeal the item.

39 Subparagraph 8A(1)(a)(ii)

Repeal the subparagraph.

40 Paragraph 8A(2)(b)

Repeal the paragraph.

41 Subparagraphs 8E(1)(d)(iii) and (2)(d)(iii)

Omit "an HEC assessment debt or", substitute "a".

42 Sub - subparagraph 12A(1)(a)(iv)(B)

Repeal the sub - subparagraph.

43 Paragraph 12A(2)(b)

Repeal the paragraph.

Part 5 -- PAYG withholding from delayed payments for termination of employment

Division 1--Main amendments

Subdivision 12 - C -- Payments for retirement or because of termination of employment

44 Subsection 10 - 5(1) in Schedule 1 (table item 8)

Omit "an * employment termination payment", substitute "a payment for termination of employment".

45 Subsection 12 - 5(2) in Schedule 1 (table item 2)

Omit "an * employment termination payment", substitute "a payment for termination of employment".

46 Subdivision 12 - C in Schedule 1 (heading)

Repeal the heading, substitute:

47 Section 12 - 85 in Schedule 1 (heading)

Repeal the heading, substitute:

12 - 85 Superannuation lump sums and payments for termination of employment

48 Paragraph 12 - 85(b) in Schedule 1

Repeal the paragraph, substitute:

(b) a payment that is an * employment termination payment or would be one except that it is received more than 12 months after termination of employment.

49 Section 16 - 165 in Schedule 1 (heading)

Repeal the heading, substitute:

16 - 165 Payment summaries for superannuation lump sums and payments for termination of employment

50 Paragraph 16 - 165(2)(b) in Schedule 1

Omit "an * employment termination payment,", substitute "a payment that is an * employment termination payment or would be one except that it is received more than 12 months after termination of employment,".

51 Subparagraph 18 - 65(3)(d)(ii) in Schedule 1

Omit "( * superannuation benefits, annuities, * employment termination payments and unused leave payments)", substitute "(Payments for retirement or because of termination of employment)".

52 Section 390 - 1 in Schedule 1 (note)

Omit "and employment termination payments".

53 Application provision

The amendments made by this Division apply in relation to payments made on or after the later of the following days (or either of them if they are the same):

(a) the day this Division commences;

(b) 1 July 2010.

Division 2--Related amendments

Child Support (Registration and Collection) Act 1988

54 Subsection 4(1) (note at the end of the definition of work and income support related withholding payments )

Omit "employment termination payments,", substitute "payments for termination of employment,".

55 Subsection 6(1) (note at the end of the definition of work and income support related withholding payments and benefits )

Omit "employment termination payments,", substitute "payments for termination of employment,".

Part 6 -- Administrative penalties for false or misleading statements

56 Subsection 28 - 185(3) (cell at table item 5, column headed "Subject matter")

Repeal the cell, substitute:

Payments for retirement or because of termination of employment

57 Subsection 900 - 12(3) (cell at table item 5, column headed "Subject matter")

Repeal the cell, substitute:

Payments for retirement or because of termination of employment

Division 1--Main amendments

284 - 95 Joint and several liability of directors of corporate trustee that makes a false or misleading statement

58 Section 284 - 25 in Schedule 1

Omit "in an * approved form".

59 Paragraph 284 - 75(1)(a) in Schedule 1

Omit "or your agent makes", substitute "make".

60 Paragraph 284 - 75(1)(b) in Schedule 1

Omit "it; and", substitute "it.".

61 Paragraph 284 - 75(1)(c) in Schedule 1

Repeal the paragraph.

62 Subsection 284 - 75(1) in Schedule 1 (note)

Omit "Note:", substitute "Note 1:".

63 At the end of subsection 284 - 75(1) in Schedule 1

Add:

Note 2: This section applies to a statement made by your agent as if it had been made by you: see section 284 - 25.

64 Paragraph 284 - 75(2)(a) in Schedule 1

Omit "or your agent makes", substitute "make".

65 Paragraph 284 - 75(2)(b) in Schedule 1

Omit "or your agent".

66 Paragraph 284 - 75(2)(c) in Schedule 1

Repeal the paragraph.

67 At the end of section 284 - 75 in Schedule 1

Add:

(4) You are liable to an administrative penalty if:

(a) you make a statement to an entity other than:

(i) the Commissioner; and

(ii) an entity exercising powers or performing functions under a * taxation law; and

(b) the statement is, or purports to be, one required or permitted by a taxation law; and

(5) You are not liable to an administrative penalty under subsection (1) or (4) for a statement that is false or misleading in a material particular if you, and your * agent (if relevant), took reasonable care in connection with the making of the statement.

68 Subsection 284 - 80(1) in Schedule 1 (note)

Repeal the note.

69 Subsection 284 - 90(1) in Schedule 1

After "this table", insert "and section 284 - 224 if relevant".

70 Subsection 284 - 90(1) in Schedule 1 (table items 1, 2 and 3)

Omit "Your * shortfall amount or part of it", substitute "You have a * shortfall amount as a result of a statement described in subsection 284 - 75(1) or (4) and the amount, or part of the amount,".

71 Subsection 284 - 90(1) in Schedule 1 (after table item 3)

Insert:

3A	A statement described in subsection 284 - 75(1) or (4) was false or misleading because of intentional disregard of a * taxation law by you or your * agent but did not result in you having a * shortfall amount	60 penalty units
3B	A statement described in subsection 284 - 75(1) or (4) was false or misleading because of recklessness by you or your * agent as to the operation of a * taxation law but did not result in you having a * shortfall amount	40 penalty units
3C	A statement described in subsection 284 - 75(1) or (4) was false or misleading because of a failure by you or your * agent to take reasonable care to comply with a * taxation law but did not result in you having a * shortfall amount	20 penalty units

72 Subsection 284 - 90(1) in Schedule 1 (table item 4)

Omit "Your * shortfall amount or part of it", substitute "You have a * shortfall amount, all or part of which".

73 Subsection 284 - 90(1) in Schedule 1 (note)

Repeal the note.

74 Subsection 284 - 90(2) in Schedule 1

Omit "to you for your * shortfall amount or a part of it".

75 At the end of Subdivision 284 - B in Schedule 1

Add:

(1) This section applies if a trustee of a * self managed superannuation fund, or of a fund that is treated as a self managed superannuation fund under subsection 10(4) of the Superannuation Industry (Supervision) Act 1993 :

(a) is liable to an administrative penalty under subsection 284 - 75(1) or (4); and

(b) is a body corporate.

(2) The directors of the body corporate at the time it becomes liable to the penalty are jointly and severally liable to pay the amount of the * tax - related liability in respect of the penalty.

Note: See section 265 - 45 for rules on joint liability.

76 Subsection 284 - 150(2) in Schedule 1 (note)

Repeal the note.

77 Section 284 - 160 in Schedule 1

After " * scheme is", insert ", subject to section 284 - 224".

78 Section 284 - 160 in Schedule 1 (note)

Repeal the note.

79 Section 284 - 215 in Schedule 1

Repeal the section.

80 Subsection 284 - 220(1) in Schedule 1

Omit "for an accounting period".

81 Paragraph 284 - 220(1)(a) in Schedule 1

After " * shortfall amount", insert ", or the false or misleading nature of a statement,".

82 Paragraph 284 - 220(1)(b) in Schedule 1

Repeal the paragraph, substitute:

(b) you:

(i) became aware of such a shortfall amount after a statement had been made to the Commissioner about the relevant * tax - related liability; or

(ii) became aware of the false or misleading nature of a statement made to the Commissioner or another entity after the statement had been made;

and you did not tell the Commissioner or other entity about it within a reasonable time; or

83 Paragraph 284 - 220(1)(c) in Schedule 1

Omit "for a previous accounting period", substitute "previously".

84 After paragraph 284 - 220(1)(c) in Schedule 1

Insert:

(ca) the base penalty amount was worked out using item 3A, 3B or 3C of the table in subsection 284 - 90(1) and a base penalty amount for you was worked out under one of those items previously; or

85 Paragraph 284 - 220(1)(d) in Schedule 1

Omit "for a previous accounting period", substitute "previously".

86 Paragraph 284 - 220(1)(e) in Schedule 1

After "you were", insert "previously".

87 Paragraph 284 - 220(1)(e) in Schedule 1

Omit "for a previous accounting period".

88 After section 284 - 220 in Schedule 1

Insert:

284 - 224 Reduction of base penalty amount if law was applied in an accepted way

(1) If, apart from this section, you would have a * base penalty amount because you or your * agent treated a * taxation law as applying in a particular way, and that way agreed with:

(a) advice given to you or your agent by or on behalf of the Commissioner; or

(b) general administrative practice under that law; or

your base penalty amount is reduced to the extent that it was caused by that treatment.

(2) For the purposes of subsection (1) it does not matter whether the * base penalty amount also relates to:

(a) a statement; or

(b) a failure to give the Commissioner a return, notice or other document when required; or

89 Section 284 - 225 in Schedule 1 (heading)

Repeal the heading, substitute:

284 - 225 Reduction of base penalty amount if you voluntarily tell the Commissioner

90 Subsections 284 - 225(1) and (2) in Schedule 1

Repeal the subsections, substitute:

(1) The * base penalty amount for your * shortfall amount or * scheme shortfall amount, for part of it or for your false or misleading statement is reduced by 20% if:

(a) the Commissioner tells you that an examination is to be made of your affairs relating to a * taxation law for a relevant period; and

(b) after that time, you voluntarily tell the Commissioner, in the * approved form, about the shortfall, the part of it or the false or misleading nature of the statement; and

(c) telling the Commissioner can reasonably be estimated to have saved the Commissioner a significant amount of time or significant resources in the examination.

(2) The * base penalty amount for your * shortfall amount or * scheme shortfall amount, for part of it or for your false or misleading statement is reduced under subsection (3), (4) or (4A) if you voluntarily tell the Commissioner, in the * approved form, about the shortfall amount, the part of it or the false or misleading nature of the statement before :

(a) the day the Commissioner tells you that an examination is to be made of your affairs relating to a * taxation law for a relevant period; or

(b) if the Commissioner makes a public statement requesting entities to make a voluntary disclosure by a particular earlier day about a * scheme or transaction that applies to your affairs--that earlier day.

91 After subsection 284 - 225(4) in Schedule 1

Insert:

(4A) The * base penalty amount for your false or misleading statement that does not result in you having a * shortfall amount is reduced to nil.

92 Subsection 284 - 225(5) in Schedule 1

Omit "or part of it, after the Commissioner tells you that a * tax audit is to be conducted of your financial affairs", substitute "part of it or the false or misleading nature of the statement after the Commissioner tells you that an examination is to be conducted of your affairs relating to a * taxation law for a relevant period".

93 Subsection 284 - 225(5) in Schedule 1

Omit "the audit", substitute "the examination".

94 Section 288 - 85 in Schedule 1

Repeal the section.

95 Subsection 361 - 5(1) in Schedule 1 (note 1)

Omit "1".

96 Subsection 361 - 5(1) in Schedule 1 (note 2)

Repeal the note.

97 Subsection 361 - 5(3) in Schedule 1

Repeal the subsection.

Division 2--Consequential amendments

Product Grants and Benefits Administration Act 2000

98 Paragraph 35(1)(b)

After "subsection 284 - 75(1)", insert "or (4)".

Superannuation Industry (Supervision) Act 1993

99 Section 38A (subparagraph (ab)(i) of the definition of regulatory provision )

Repeal the subparagraph, substitute:

(i) subsections 284 - 75(1) and (4) and section 284 - 95;

100 Subsection 39(1B)

Omit "section 288 - 85 in Schedule 1 to the Taxation Administration Act 1953 as a contravention of that section", substitute "subsection 284 - 75(1) or (4) in Schedule 1 to the Taxation Administration Act 1953 as a contravention of that subsection".

Division 3--Application provision

101 Application provision--Divisions 1 and 2

The amendments made by Divisions 1 and 2 apply in relation to things done on or after the commencement of those Divisions.

Division 4--Amendments with contingent commencement

Part 7 -- Offsets against superannuation guarantee charge

102 Subsections 284 - 75(1A) and (1B) in Schedule 1

Repeal the subsections.

103 Before subsection 284 - 75(5) in Schedule 1

Insert:

Exceptions to subsections (1) and (4)

104 At the end of section 284 - 75 in Schedule 1

Add:

(6) You are not liable to an administrative penalty under subsection (1) or (4) if:

(a) you engage a * registered tax agent or BAS agent; and

(b) you give the registered tax agent or BAS agent all relevant taxation information; and

(d) the false or misleading nature of the statement did not result from:

(i) intentional disregard by the registered tax agent or BAS agent of a * taxation law; or

(ii) recklessness by the agent as to the operation of a taxation law.

(7) If you wish to rely on subsection (6), you bear an evidential burden in relation to paragraph (6)(b).

105 Application provision

The amendments made by this Division apply in relation to statements made on or after the commencement of this Division.

Tax Laws Amendment (2008 Measures No. 2) Act 2008

106 After item 7 of Schedule 2

Insert:

7A Application of section 23A of the Superannuation Guarantee (Administration) Act 1992 as amended

(1) Section 23A of the Superannuation Guarantee (Administration) Act 1992 , as amended by this Schedule, applies to:

(a) contributions made before, on or after 1 January 2006; and

(b) elections made on or after 24 June 2008.

Note: The amendments of that section made by this Schedule commenced on 24 June 2008.

(2) This item has effect subject to items 8 and 9.

(3) To avoid doubt, this item:

(a) has effect despite subitem 10(1) of Schedule 6 to the Tax Laws Amendment (Loss Recoupment Rules and Other Measures) Act 2005 ; and

(b) does not affect the application of amendments of section 23A of the Superannuation Guarantee (Administration) Act 1992 commencing after the commencement of the amendments of that section made by this Schedule.

Note: Subitem 10(1) of Schedule 6 to the Tax Laws Amendment (Loss Recoupment Rules and Other Measures) Act 2005 applied the amendment inserting section 23A in the Superannuation Guarantee (Administration) Act 1992 to contributions made on or after 1 January 2006.

107 Paragraphs 8(1)(a) and 9(a) of Schedule 2

After "this Schedule", insert "(apart from item 7A)".

Part 8 -- Status of certain superannuation funds

Part 9 -- Technical corrections

108 Subsection 267(1) (at the end of the definition of constitutionally protected fund )

Add "and is not established under Schedule 3 to the Superannuation Act 1988 of South Australia".

A New Tax System (Luxury Car Tax) Act 1999

109 Section 9 - 20

Omit "from", substitute "form".

Note: This item corrects a misspelling.

Tax Laws Amendment (2009 Measures No. 4) Act 2009

110 Section 363 - 35 in Schedule 1

Renumber as section 263 - 35.

Note: This item corrects a numbering error.

111 Subparagraphs 426 - 165(1)(b)(a) and (b) in Schedule 1

Renumber as subparagraphs (i) and (ii).

Note: This item corrects a numbering error.

112 Item 132 of Schedule 5

Omit "the Arts", substitute "Arts".

Note: This item corrects a misdescribed amendment.

113 Item 133 of Schedule 5

Omit "and Arts", substitute "and the Arts".

Note: This item corrects a misdescribed amendment.

Part 10 -- Repeal of redundant material

114 Subsection 6(1) (definition of accrued leave transfer payment )

Repeal the definition.

Note: This repeals a definition that is not used any more and defines accrued leave transfer payment by reference to a repealed provision.

115 Subsection 116 - 30(1) (note)

Repeal the note.

Note: This repeals a note that merely refers to 2 sections that have been repealed.

Part 11 -- Other minor changes

116 Subsection 16 - 150(1) in Schedule 1

Omit "(1) An", substitute "An".

Note: This omits a subsection number from a section that is no longer divided into subsections.

A New Tax System (Goods and Services Tax) Act 1999

117 Section 195 - 1

Insert:

"luxury car" has the same meaning as in section 25 - 1 of the A New Tax System (Luxury Car Tax) Act 1999 .

118 Subsection 6(1) (definition of agent )

Repeal the definition, substitute:

"agent" : this Act applies to some entities (within the meaning of the Income Tax Assessment Act 1997 ) that are not agents in the same way as it applies to agents: see section 960 - 105 of the Income Tax Assessment Act 1997 .

119 Transitional provision relating to agents

A declaration in force for the purposes of paragraph (b) of the definition of agent in subsection 6(1) of the Income Tax Assessment Act 1936 immediately before the repeal of that definition by this Part continues to have effect on and after that repeal as if it were a determination under subsection 960 - 105(2) of the Income Tax Assessment Act 1997 .

120 Subsection 6(1) (definition of allowable deduction )

Repeal the definition, substitute:

"allowable deduction" has the same meaning as deduction has in the Income Tax Assessment Act 1997 .

121 Subsection 6(1) (definition of friendly society dispensary )

Repeal the definition, substitute:

"friendly society dispensary" has the meaning given by subsection 995 - 1(1) of the Income Tax Assessment Act 1997 .

122 Subsection 6(1) (definition of paid - up share capital )

Repeal the definition, substitute:

"paid-up share capital" has the meaning given by subsection 995 - 1(1) of the Income Tax Assessment Act 1997 .

123 Subsection 6(1) (definition of person )

Repeal the definition, substitute:

"person" has the same meaning as in the Income Tax Assessment Act 1997 .

124 Subsection 45B(9)

Omit "a dividend.", substitute "an assessable dividend.".

125 Application provision

(1) The amendment of subsection 45B(9) of the Income Tax Assessment Act 1936 made by this Part applies to capital benefits provided on or after 30 November 2009.

(2) The amendment is to be disregarded for the purposes of interpreting that subsection as in force before the commencement of the amendment.

126 Subsection 45B(10)

Repeal the subsection, substitute:

(10) In this section:

"scheme" has the meaning given by subsection 995 - 1(1) of the Income Tax Assessment Act 1997 .

115 - 32 Special rule about time of acquisition for certain replacement - asset roll - overs

127 Section 12 - 5 (table item headed "family tax benefit")

Repeal the item.

128 Section 25 - 7

Repeal the section.

129 Section 67 - 23 (after table item 10)

Insert:

education expenses

the * tax offset available under Subdivision 61 - M

130 Application provision

Item 12 of the table in section 67 - 23 of the Income Tax Assessment Act 1997 applies to tax offsets for the 2009 - 2010 income year and later income years.

131 Section 67 - 23 (after table item 20)

Insert:

National Rental Affordability Scheme

the * tax offsets available under Division 380

132 Application provision

Item 23 of the table in section 67 - 23 of the Income Tax Assessment Act 1997 applies to tax offsets for the 2008 - 09 income year and later income years.

133 Subsection 67 - 25(7)

Repeal the subsection.

134 Application provision

The repeal of subsection 67 - 25(7) of the Income Tax Assessment Act 1997 by this Part applies to tax offsets for the 2009 - 2010 income year and later income years.

135 Section 109 - 55 (table item 8C)

After "replacement - asset roll - over", insert "(other than a roll - over covered by section 115 - 34)".

136 At the end of section 109 - 55

Add:

Note: Section 115 - 34 sets out other acquisition rules for certain cases involving replacement - asset roll - overs covered by that section.

137 Section 112 - 97 (cell at table item 21, column headed "See:")

Repeal the cell, substitute:

subsection 320 - 200(2)

138 Section 112 - 97 (cell at table item 22, column headed "See:")

Repeal the cell, substitute:

subsection 320 - 255(2)

139 Subsection 115 - 25(1) (note)

Omit "Note", substitute "Note 1".

140 At the end of subsection 115 - 25(1)

Add:

Note 2: Section 115 - 30 or 115 - 34 may affect the time when the entity is treated as having acquired the CGT asset.

141 Subsection 115 - 30(1) (table item 2)

Repeal the item, substitute:

A * CGT asset that the acquirer * acquired as a replacement asset for a * replacement - asset roll - over (other than a roll - over covered by paragraph 115 - 34(1)(c))

(a) when the acquirer acquired the original asset involved in the roll - over; or

(b) if the acquirer acquired the replacement asset for a roll - over that was the last in an unbroken series of replacement - asset roll - overs (other than roll - overs covered by paragraph 115 - 34(1)(c))--when the acquirer acquired the original asset involved in the first roll - over in the series

142 After section 115 - 30

Insert:

(1) This section applies if:

(a) a * CGT event happens to:

(i) your * share in a company; or

(ii) your * trust voting interest, unit or other fixed interest in a trust; and

(b) you * acquired the share or interest as a replacement asset for a * replacement - asset roll - over (other than a roll - over covered by paragraph 115 - 34(1)(c)); and

(i) owns a * membership interest in an entity (the original entity ); and

(ii) has owned that membership interest for less than 12 months; and

(d) that membership interest is the original asset for the roll - over.

Note: This section does not affect the time when you are treated as having acquired the replacement asset. That time is worked out under item 2 of the table in subsection 115 - 30(1).

Application of tests about the assets of the company or trust

(2) Subsection 115 - 45(4) applies as if the company or trust had * acquired the original asset at least 12 months before the * CGT event, if the condition in that subsection would not be met were it to be applied to the original entity and the CGT event.

(3) Subsection 115 - 45(6) applies as if the company or trust had * acquired the original asset at least 12 months before the * CGT event, if the condition in subsection 115 - 45(5) would not be met were it to be applied to the original entity and the CGT event.

115 - 34 Further special rule about time of acquisition for certain replacement - asset roll - overs

(1) This section applies if:

(a) a * CGT event happens to your * share in a company; and

(b) at the time of the CGT event, you had owned the share for less than 12 months; and

(i) a * replacement - asset roll - over under Subdivision 122 - A (disposal of assets by individuals or trustees to a wholly - owned company) for which you * disposed of a * CGT asset, or all the assets of a * business, to the company; or

(ii) a replacement - asset roll - over under Subdivision 122 - B (disposal of assets by partners to a wholly - owned company) for which you disposed of your interests in a CGT asset, or your interests in all the assets of a business, to the company; or

(iii) a replacement - asset roll - over under Subdivision 124 - N (disposal of assets by trusts to a company) for which a trust of which you were a beneficiary disposed of all of its CGT assets to the company.

Application of tests about when you acquired the share

(2) Sections 115 - 25 and 115 - 40 apply as if you had * acquired the * share at least 12 months before the * CGT event.

Application of tests about the company's assets

(3) For each asset mentioned in subparagraph (1)(c)(i), subsections 115 - 45(4) and (6) apply as if the company had * acquired that asset when you acquired it.

(4) For each asset mentioned in subparagraph (1)(c)(ii), subsections 115 - 45(4) and (6) apply as if the company had * acquired that asset when you acquired your interests in it.

(5) For each asset mentioned in subparagraph (1)(c)(iii), subsections 115 - 45(4) and (6) apply as if the company had * acquired that asset when the trust acquired it.

Relationship with Subdivision 109 - A

(6) This section has effect despite Subdivision 109 - A (which contains rules about the time of acquisition of CGT assets).

143 Section 115 - 40 (note)

After "Section 115 - 30", insert "or 115 - 34".

144 Subsection 115 - 45(4) (note)

Omit "Section 115 - 30", substitute "Sections 115 - 30 and 115 - 32, or section 115 - 34,".

145 Subsection 115 - 45(6) (note)

Omit "Section 115 - 30", substitute "Sections 115 - 30 and 115 - 32, or section 115 - 34,".

146 Application provision

The amendments made by items 135, 136 and 139 to 145 apply to assessments for the income year including 21 September 1999 and for later income years, in relation to CGT events happening after 11.45 am (by legal time in the Australian Capital Territory) on that day.

147 At the end of subsection 152 - 320(1)

Add:

Note: The $500,000 is also reduced by any reduction under old provisions about reduction of the CGT retirement exemption limit: see item 62 of Schedule 1 to the New Business Tax System (Capital Gains Tax) Act 1999 .

148 Paragraph 974 - 110(1)(b)

After "subsequently changed", insert ", including where one or more (but not all) of the schemes cease to exist".

149 Application provision

The amendment of paragraph 974 - 110(1)(b) of the Income Tax Assessment Act 1997 made by this Part applies in relation to changes occurring on or after the day this Act receives the Royal Assent.

150 Subsection 995 - 1(1)

Insert:

"common stake" has the meaning given by section 124 - 783.

151 Subsection 995 - 1(1)

Insert:

"common stakeholder" has the meaning given by section 124 - 783.

152 Subsection 995 - 1(1) (definition of quote )

Repeal the definition, substitute:

"quote" :

(a) quote an entity's * ABN means quote in a form and manner approved by the Commissioner;

(b) quote a * tax file number in connection with a * Part VA investment: you quote your tax file number in connection with the investment if you are taken, for the purposes of Part VA of the Income Tax Assessment Act 1936 , to have quoted the number in connection with the investment.

153 Subsection 995 - 1(1) (definition of quoted )

Repeal the definition.

154 Subsection 995 - 1(1)

Insert:

"significant stake" has the meaning given by section 124 - 783.

155 Subsection 995 - 1(1)

Insert:

"significant stakeholder" has the meaning given by section 124 - 783.

Income Tax (Transitional Provisions) Act 1997

156 Section 1 - 10

Repeal the section, substitute:

1 - 10 Definitions and rules for interpreting this Act

(1) In this Act, an expression has the same meaning as in the Income Tax Assessment Act 1997 .

(2) Division 950 of the Income Tax Assessment Act 1997 (which contains rules for interpreting that Act) applies to this Act as if the provisions of this Act were provisions of that Act.

157 Subsection 770 - 230(5)

Omit "limit".

158 Application provision--amendment of subsection 770 - 230(5)

The amendment of subsection 770 - 230(5) of the Income Tax (Transitional Provisions) Act 1997 made by this Part applies in relation to income years, statutory accounting periods and notional accounting periods starting on or after 1 July 2008.