Commonwealth Consolidated Acts Commonwealth Consolidated ActsPart 1 -- National Rental Affordability Scheme Tax Offset
Income Tax Assessment Act 1997
1 Sections 380 - 5 to 380 - 20
Repeal the sections, substitute:
NRAS certificates issued to individuals, corporate tax entities and superannuation fun d s
380 - 5 Claims by individuals, corporate tax entities and superannuation funds
Entitlement
(1) An entity is entitled to a * tax offset for an income year if:
(a) the * Housing Secretary issues an * NRAS certificate in relation to an * NRAS year to the entity (other than in the entity's capacity (if any) as the * NRAS approved participant of an * NRAS consortium); and
(b) the income year begins in the NRAS year; and
(c) the entity is an individual, a * corporate tax entity or a * superannuation fund.
Amount
(2) The amount of the entity's * tax offset is the amount stated in the * NRAS certificate.
NRAS certificates issued to NRAS approved participan t s
380 - 10 Members of NRAS consortiums--individuals, corporate tax entities and superannuation funds
Entitlement
(1) A * member of an * NRAS consortium is entitled to a * tax offset for an income year if:
(a) the * Housing Secretary issues an * NRAS certificate in relation to an * NRAS year to the * NRAS approved participant of the NRAS consortium; and
(b) the income year commences in the NRAS year; and
(c) the member is an individual, a * corporate tax entity or a * superannuation fund.
Amount
(2) The amount of the * tax offset is the total of the amounts worked out using the following formula for each * NRAS dwelling:
(a) covered by the * NRAS certificate; and
(b) from which the * member * derives * NRAS rent during the * NRAS year:
(3) Treat the references in subsection ( 2) to the * NRAS year as being references to a period that occurs during the NRAS year, if the * NRAS certificate is apportioned for the period.
380 - 14 Members of NRAS consortiums--partnerships and trustees
(1) This section applies if:
(a) the * Housing Secretary issues an * NRAS certificate in relation to an * NRAS year to the * NRAS approved participant of an * NRAS consortium; and
(b) the NRAS certificate covers one or more * NRAS dwellings; and
(c) a * member of the NRAS consortium , other than the NRAS approved partic ipant, * derives * NRAS rent during the NRAS year from any of those NRAS dwellings; and
(d) the member is a partnership or a trustee of a trust.
(2) For the purposes of sections 380 - 15 and 380 - 20, assume that:
(a) the * member has been issued with an * NRAS certificate in relation to the * NRAS year; and
(b) the NRAS certificate covers each * NRAS dwelling:
(i) covered by the NRAS certificate mentioned in paragraph ( 1)(b) of this section; and
(ii) from which the member * derives * NRAS rent during the NRAS year; and
(c) the amount stated in the NRAS certificate for each of those NRAS dwellings is the amount worked out using the formula in subsection 380 - 10(2) in relation to the NRAS dwelling for the NRAS year for the member.
NRAS certificates issued to partnerships and truste e s
380 - 15 Entities to whom NRAS rent flows indirectly
(1) An entity is entitled to a * tax offset for an income year (the offset year ) if:
(a) the * Housing Secretary issues an * NRAS certificate in relation to an * NRAS year to a partnership or a trustee of a trust; and
(b) * NRAS rent * derived:
(i) from any of the * NRAS dwellings covered by the NRAS certificate; and
(ii) during the NRAS year;
* flows indirectly to the entity in any income year; and
(c) the offset year of the partnership or trustee begins in the NRAS year; and
(d) the entity is:
(i) an individual; or
(ii) a * corporate tax entity when the NRAS rent flows indirectly to it; or
(iii) the trustee of a trust that is liable to be assessed on a share of, or all or a part of, the trust's * net income under section 98, 99 or 99A of the Income Tax Assessment Act 1936 for the offset year; or
(iv) the trustee of an * FHSA; or
(v) a * superannuation fund, an * approved deposit fund or a * pooled superannuation trust.
Note: The entities covered by this section are the ultimate recipients of the NRAS rent because the NRAS rent does not flow indirectly through them to other entities.
(2) The amount of the * tax offset is the sum of the amounts worked out using the following formula for each * NRAS dwelling from which there is * NRAS rent covered by paragraph ( 1)(b):
(3) Treat the references in subsection ( 2) to the * NRAS year as being references to a period that occurs during the NRAS year, if the * NRAS certificate is apportioned for the period.
380 - 20 Trustee of a trust that does not have net income for an income year
(1) An entity is entitled to a * tax offset for an income year (the offset year ) if:
(a) the * Housing Secretary issues an * NRAS certificate in relation to an * NRAS year to a partnership or a trustee of a trust; and
(b) the entity is a trustee of a trust; and
(c) the trust mentioned in paragraph ( b) does not have a * net income for an income year; and
(d) * NRAS rent * derived during the NRAS year from an * NRAS dwelling covered by the NRAS certificate would otherwise * flow indirectly to the entity in the income year mentioned in paragraph ( c) as if:
(i) the trust did have a net income for the income year; and
(ii) for the purposes of paragraph 380 - 25(4)(b), the entity has a share amount, being the net income referred to in subparagraph ( i) of this paragraph; and
(iii) the entity's * share of the NRAS rent under section 380 - 30 was a positive amount; and
(e) the offset year of the partnership or trustee begins in the NRAS year.
(2) The amount of the * tax offset is the amount worked out in accordance with subsection 380 - 15(2), as if the reference in the formula to the * NRAS certificate were a reference to the NRAS certificate mentioned in paragraph ( 1)(a) of this section.
(3) For the purposes of working out the entity's * share of * NRAS rent for an * NRAS dwelling, assume subparagraphs ( 1)(d)(i), (ii) and (iii) of this section apply.
(4) If the trustee of a trust is entitled to a * tax offset under this section:
(a) a beneficiary of the trust; or
(b) a subsequent entity to whom * NRAS rent for an * NRAS dwelling mentioned in paragraph ( 1)(d) * flows indirectly;
is not entitled to a tax offset under this Subdivision in relation to the NRAS rent * derived during the * NRAS year from for the NRAS dwelling.
2 At the end of Subdivision 380 - A
Add:
A reference in this Subdivision to an * NRAS certificate in relation to an * NRAS year is to be treated as a reference to an amended NRAS certificate in relation to the NRAS year, if the * Housing Secretary issues such an amended certificate.
3 Application provision
The amendments made by this Division apply to NRAS rent derived during the 2009 - 10 NRAS year or later NRAS years.
Division 2--Elections by NRAS approved participants
Income Tax Assessment Act 1997
4 After section 380 - 10
Insert:
380 - 11 Elections by NRAS approved participants
Scope
(1) This section and sections 380 - 12 and 380 - 13 apply if:
(a) a * member (the electing member ) of an * NRAS consortium would, apart from subsection 380 - 12(3), be entitled to a * tax offset under section 380 - 10 for an income year because of:
(i) an * NRAS certificate in relation to an * NRAS year; and
(ii) an * NRAS dwelling covered by the NRAS certificate; and
(b) the electing member was the * NRAS approved participant of the NRAS consortium at any time during the NRAS year; and
(c) the electing member elects to have this section apply to the NRAS certificate and NRAS dwelling for the income year.
Requirements for an election
(2) The election must be made:
(a) in the * approved form; and
(b) within 30 days after the day the * Housing Secretary issues the * NRAS certificate.
(3) The Commissioner may require a copy or copies of the election to be given, within the 30 day period mentioned in paragraph ( 2)(b):
(a) to the Commissioner; or
(b) to each * member of the * NRAS consortium who may be entitled to a * tax offset under section 380 - 12 as a result of the election; or
(c) both to the Commissioner and to each such member.
(4) The election may not be revoked.
380 - 12 Elections by NRAS approved participants--tax offsets
Entitlement to tax offset
(1) A * member of the * NRAS consortium (other than the electing member) is entitled to a * tax offset for the income year if the member is an individual, a * corporate tax entity or a * superannuation fund .
Amount of tax offset
(2) The amount of the * tax offset is the amount worked out using the following formula:
where:
"member's rent" means:
(a) if * NRAS rent was payable for the * NRAS dwelling in relation to the whole of the * NRAS year--the rent * derived by the * member from the NRAS dwelling during the NRAS year; or
(b) if NRAS rent was payable for the NRAS dwelling in relation to only part of the NRAS year--the rent derived by the member from the NRAS dwelling during that part of the NRAS year.
"total rent" means:
(a) if * NRAS rent was payable for the * NRAS dwelling in relation to the whole of the * NRAS year--the rent * derived from the NRAS dwelling during the NRAS year; or
(b) if NRAS rent was payable for the NRAS dwelling in relation to only part of the NRAS year--the rent derived from the NRAS dwelling during that part of the NRAS year.
(3) The * tax offset to which the electing member would otherwise be entitled under section 380 - 10 for the income year because of the * NRAS certificate and the * NRAS dwelling is reduced by the same amount.
(4) Treat the references in subsection ( 2) to the * NRAS year as being references to a period that occurs during the NRAS year, if the * NRAS certificate is apportioned for the period.
Amount of tax offset--rent that passes through NRAS approved participant
(5) For the purposes of the references in the definitions in subsection ( 2) to rent * derived from the * NRAS dwelling during the * NRAS year, disregard * NRAS rent derived by a * member of the * NRAS consortium from the NRAS dwelling during a period in the NRAS year, to the extent that another member derives rent from the NRAS dwelling during the period because:
(a) the first member is the * NRAS approved participant of the NRAS consortium throughout the period; and
(b) the first member, in accordance with the contractual * arrangements that established the NRAS consortium, passes the NRAS rent on to the other member.
Note: There may be more than one NRAS approved participant during an NRAS year. The electing member may be the NRAS approved participant for only part of the NRAS year.
(6) For the purposes of paragraph ( 5)(b), treat any * NRAS rent retained by the first * member under the * arrangements as management fees or commission as having been passed on to the other member.
380 - 13 Elections by NRAS approved participants--special rule for partnerships and trustees
For the purposes of sections 380 - 14 to 380 - 30 (which apply if a partnership or the trustee of a trust derives NRAS rent), for each * NRAS dwelling:
(a) from which the electing member * derived * NRAS rent during the * NRAS year; and
(b) that is covered by the * NRAS certificate; and
(c) from which a partnership, or the trustee of a trust, that is a * member of the * NRAS consortium derived rent during the NRAS year;
treat the following proportion of the NRAS rent as being NRAS rent derived during the NRAS year by the member mentioned in paragraph ( c):
where:
"member's rent" has the same meaning as in subsection 380 - 12(2).
"total rent" has the same meaning as in subsection 380 - 12(2).
5 Subsection 380 - 14(2)
Omit "sections 380 - 15 and 380 - 20", substitute "sections 380 - 15 to 380 - 20".
6 After section 380 - 15
Insert:
380 - 16 Elections by NRAS approved participants that are partnerships or trustees
Scope
(1) This section and sections 380 - 17 and 380 - 18 apply if:
(a) an entity (the indirect entity ) is entitled to a * tax offset under section 380 - 15 or 380 - 20 for an income year because * NRAS rent * derived:
(i) from any of the * NRAS dwellings covered by an * NRAS certificate issued by the * Housing Secretary in relation to an * NRAS year to a * member (the electing member ) of an * NRAS consortium; and
(ii) during the NRAS year;
* flows indirectly to the indirect entity in any income year (or would otherwise flow indirectly to the indirect entity, as mentioned in paragraph 380 - 20(1)(d)); and
(b) the electing member was the * NRAS approved participant of the NRAS consortium at any time during the NRAS year; and
(c) the electing member elects to have this section apply to the NRAS certificate and NRAS dwelling for the income year.
Requirements for an election
(2) The election must be made:
(a) in the * approved form; and
(b) within 30 days after the day the * Housing Secretary issues the * NRAS certificate.
(3) The Commissioner may require a copy or copies of the election to be given, within the 30 day period mentioned in paragraph ( 2)(b):
(a) to the Commissioner; or
(b) to each * member of the * NRAS consortium who may be entitled to a * tax offset under section 380 - 17 as a result of the election; or
(c) both to the Commissioner and to each such member.
(4) The election may not be revoked.
380 - 17 Elections by NRAS approved participants that are partnerships or trustees--tax offsets
Entitlement to tax offset
(1) A * member of the * NRAS consortium (other than the electing member) is entitled to a * tax offset for the income year if the member is an individual, a * corporate tax entity or a * superannuation fund .
Amount of tax offset
(2) The amount of the * tax offset is the amount worked out using the following formula:
where:
"member's rent" means:
(a) if * NRAS rent was payable for the * NRAS dwelling in relation to the whole of the * NRAS year--the rent * derived by the * member from the NRAS dwelling during the NRAS year; or
(b) if NRAS rent was payable for the NRAS dwelling in relation to only part of the NRAS year--the rent derived by the member from the NRAS dwelling during that part of the NRAS year.
"total rent" means:
(a) if * NRAS rent was payable for the * NRAS dwelling in relation to the whole of the * NRAS year--the rent * derived from the NRAS dwelling during the NRAS year; or
(b) if NRAS rent was payable for the NRAS dwelling in relation to only part of the NRAS year--the rent derived from the NRAS dwelling during that part of the NRAS year.
"total tax offsets" means the total of the * tax offsets to which entities would be entitled under section 380 - 15 or 380 - 20 because of * NRAS rent * derived:
(a) from any of the * NRAS dwellings covered by the * NRAS certificate; and
(b) during the * NRAS year;
that * flows indirectly to them from the electing member (or would otherwise flow indirectly to them from the electing member, as mentioned in paragraph 380 - 20(1)(d)).
(3) The * tax offset to which the indirect entity would otherwise be entitled under section 380 - 15 for the income year because of the * NRAS certificate and the * NRAS dwelling is reduced by the amount worked out using the following formula:
where:
"total tax offsets" has the same meaning as in subsection ( 2).
(4) Treat the references in subsection ( 2) to the * NRAS year as being references to a period that occurs during the NRAS year, if the * NRAS certificate is apportioned for the period.
Amount of tax offset--rent that passes through NRAS approved participant
(5) For the purposes of the references in the definitions in subsection ( 2) to rent * derived from the * NRAS dwelling during the * NRAS year, disregard * NRAS rent derived by a * member of the * NRAS consortium from the NRAS dwelling during a period in the NRAS year, to the extent that another member derives rent from the NRAS dwelling during the period because:
(a) the first member is the * NRAS approved participant of the NRAS consortium throughout the period; and
(b) the first member, in accordance with the contractual * arrangements that established the NRAS consortium, passes the NRAS rent on to the other member.
Note: There may be more than one NRAS approved participant during an NRAS year. The electing member may be the NRAS approved participant for only part of the NRAS year.
(6) For the purposes of paragraph ( 5)(b), treat any * NRAS rent retained by the first * member under the * arrangements as management fees or commission as having been passed on to the other member.
For the purposes of sections 380 - 15 and 380 - 20 to 380 - 30 (which apply if a partnership or the trustee of a trust derives NRAS rent), for each * NRAS dwelling:
(a) from which the electing member * derived * NRAS rent during the * NRAS year; and
(b) that is covered by the * NRAS certificate; and
(c) from which a partnership or trust that is a * member of the * NRAS consortium derived rent during the NRAS year;
treat the following proportion of the NRAS rent as being NRAS rent derived during the NRAS year by the member mentioned in paragraph ( c):
where:
"member's rent" has the same meaning as in subsection 380 - 14B(2).
"total rent" has the same meaning as in subsection 380 - 14B(2).
7 Application provision
The amendment made by this Division applies to assessments for:
(a) the 2010 - 11 income year; and
(b) later income years.
8 Transitional provision--elections
An election in relation to an NRAS certificate under section 380 - 11 or 380 - 16 of the Income Tax Assessment Act 1997 , inserted by this Division, may be made within 30 days after the day this item commences, if the Housing Secretary issues the NRAS certificate before that commencement.
Income Tax Assessment Act 1997
9 Paragraph 118 - 37(1)(j)
After "to you", insert "(whether directly or indirectly, such as through an * NRAS consortium of which you are a * member)".
10 Section 380 - 35
Omit "or a * non - cash benefit provided to you", substitute ", or a * non - cash benefit provided to you, (whether directly or indirectly, such as through an * NRAS consortium of which you are a * member)".
11 Application provision
The amendments made by this Part apply to assessments for:
(a) the 2008 - 09 income year; and
(b) later income years.
Income Tax Assessment Act 1997
12 Paragraph 118 - 37(1)(j)
Omit "National Rental Affordability Scheme", substitute " * National Rental Affordability Scheme".
13 Section 380 - 35
Omit "National Rental Affordability Scheme", substitute " * National Rental Affordability Scheme".
14 Subsection 995 - 1(1) (at the end of the definition of member )
Add:
; and (e) in relation to an * NRAS consortium--means:
(i) an entity (other than in the capacity as a partner of a partnership) that is a party to the contractual * arrangement, or to one of the contractual arrangements, that established the NRAS consortium (whether or not the entity was a party to the arrangement when the NRAS consortium was established); or
(ii) a partnership, if all of the partners of the partnership are parties to the contractual arrangement, or to one of the contractual arrangements, that established the NRAS consortium (whether or not the partners were parties to the arrangement when the NRAS consortium was established).
15 Subsection 995 - 1(1)
Insert:
"NRAS approved participant" (short for National Rental Affordability Scheme approved participant), of an * NRAS consortium, means a * member of the NRAS consortium who is the approved participant (within the meaning of the regulations made for the purposes of the National Rental Affordability Scheme Act 2008 ) for the NRAS consortium.
16 Subsection 995 - 1(1)
Insert:
"NRAS certificate" (short for National Rental Affordability Scheme certificate) means a certificate issued by the * Housing Secretary under the * National Rental Affordability Scheme.
17 Subsection 995 - 1(1)
Insert:
"NRAS consortium" (short for National Rental Affordability Scheme consortium) means a consortium, joint venture or * non - entity joint venture:
(a) established by one or more contractual * arrangements, the purpose of which are to facilitate the leasing of * NRAS dwellings; and
(b) that is not a * corporate tax entity, a * superannuation fund, a trust or a partnership.
18 Subsection 995 - 1(1)
Insert:
"NRAS dwelling" (short for National Rental Affordability Scheme dwelling) means an approved rental dwelling (within the meaning of the regulations made for the purposes of the National Rental Affordability Scheme Act 2008 ).
19 Subsection 995 - 1(1) (definition of NRAS rent )
Omit "rental dwelling under the National Rental Affordability Scheme", substitute " * NRAS dwelling under the * National Rental Affordability Scheme".
