Commonwealth Consolidated Acts Commonwealth Consolidated Acts
A New Tax System (Australian Business Number) Act 1999
1 After section 5
Insert:
5A Application to religious practitioners and religious institutions
If a * religious practitioner:
(a) does an activity, or a series of activities:
(i) in pursuit of his or her vocation as a religious practitioner; and
(ii) as a member of a religious institution; and
(b) does not do the activity, or series of activities, as an employee or agent of the religious institution or another entity;
this Act applies as if the activity, or series of activities, had been done by the religious institution and not by the religious practitioner.
Note: This will mean that such an activity will be an enterprise of the religious institution under subsection 38(1) and not an enterprise of the religious practitioner.
2 Section 41
Insert:
"religious practitioner" means:
(a) a minister of religion; or
(b) a student at an institution who is undertaking a course of instruction in the duties of a minister of religion; or
(c) a full - time member of a religious order; or
(d) a student at a college conducted solely for training persons to become members of religious orders.
3 Application
The amendments of the A New Tax System (Australian Business Number) Act 1999 made by this Schedule apply to activities done by a religious practitioner on or after 1 July 2000.
A New Tax System (Goods and Services Tax) Act 1999
4 After Division 49
Insert:
Division 50 -- GST treatment of religious practitioners
50 - 1 What this Division is about
Activities of a religious practitioner done in pursuit of his or her vocation as a religious practitioner and as a member of a religious institution will be treated as activities done by the religious institution, unless the religious practitioner is acting as an employee or agent.
Table of sections
50 - 5 GST treatment of religious practitioners
50 - 5 GST treatment of religious practitioners
If a * religious practitioner:
(a) does an activity, or a series of activities:
(i) in pursuit of his or her vocation as a religious practitioner; and
(ii) as a member of a religious institution; and
(b) does not do the activity, or series of activities, as an employee or agent of the religious institution or another entity;
the * GST law applies as if the activity, or series of activities, had been done by the religious institution and not by the religious practitioner.
Note: This will mean that such an activity will be an enterprise of the religious institution under subsection 9 - 20(1) and not an enterprise of the religious practitioner.
5 Section 195 - 1
Insert:
"religious practitioner" means:
(a) a minister of religion; or
(b) a student at an institution who is undertaking a course of instruction in the duties of a minister of religion; or
(c) a full - time member of a religious order; or
(d) a student at a college conducted solely for training persons to become members of religious orders.
6 Application
The amendments of the A New Tax System (Goods and Services Tax) Act 1999 made by this Schedule apply to activities done by a religious practitioner on or after 1 July 2000.
Fringe Benefits Tax Assessment Act 1986
7 Subsection 136(1) (definition of salary or wages )
Repeal the definition, substitute:
"salary or wages" means:
(a) a payment from which an amount must be withheld (even if the amount is not withheld) under a provision in Schedule 1 to the Taxation Administration Act 1953 listed in the table, to the extent that the payment is assessable income; and
(b) a payment from which an amount must be withheld (even if the amount is not withheld) under section 12 - 47 in Schedule 1 to the Taxation Administration Act 1953 where:
(i) the payment is made to a religious practitioner by a religious institution; and
(ii) the activity, or series of activities, for which the payment is made is done by the religious practitioner as a member of the religious institution.
Withholding payments covered | ||
Item | Provision | Subject matter |
1 | Section 12 - 35 | Payment to employee |
2 | Section 12 - 40 | Payment to company director |
3 | Section 12 - 45 | Payment to office holder |
4 | Section 12 - 115 | Commonwealth education or training payment |
5 | Section 12 - 120 | Compensation, sickness or accident payment |
8 Application
The amendment of the Fringe Benefits Tax Assessment Act 1986 made by item 7 of this Schedule applies to payments made on or after 1 July 2002.
9 Transitional treatment of payments to religious practitioners
(1) This item applies to payments made to religious practitioners during the period (the transitional period ) from the start of 1 July 2000 until the end of 30 June 2002.
(2) For the purposes of the Fringe Benefits Tax Assessment Act 1986 , a payment to a religious practitioner during the transitional period is taken to be a payment of salary or wages if it would have been a payment of salary or wages had it been made immediately after the end of the transitional period.
(3) In this item, religious practitioner has the meaning given by subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986 .
Income Tax Assessment Act 1997
10 Subsection 26 - 30(6)
Repeal the subsection, substitute:
Withholding payments covered
(6) This subsection covers:
(a) a * withholding payment covered by any of the provisions in Schedule 1 to the Taxation Administration Act 1953 listed in the table; and
(b) a withholding payment covered by section 12 - 47 in Schedule 1 to the Taxation Administration Act 1953 where:
(i) the payment is made to a religious practitioner by a religious institution; and
(ii) the activity, or series of activities, for which the payment is made is done by the religious practitioner as a member of the religious institution.
Withholding payments covered | ||
Item | Provision | Subject matter |
1 | Section 12 - 40 | Payment to company director |
2 | Section 12 - 45 | Payment to office holder |
3 | Section 12 - 50 | Return to work payment |
4 | Subdivision 12 - D | Benefit, training and compensation payments |
11 Subsection 28 - 185(3) (after table item 3)
Insert:
3A | Section 12 - 47 | Payment to * religious practitioner |
12 Section 85 - 35 (heading)
Repeal the heading, substitute:
85 - 35 Exception: employees, office holders and religious practitioners
13 At the end of section 85 - 35
Add:
(2) This Division does not apply to an amount, payment or contribution to the extent that the amount, payment or contribution relates to a payment referred to in section 12 - 47 in Schedule 1 to the Taxation Administration Act 1953 (payments to * religious practitioners).
14 Subsection 130 - 90(5) (after table item 3)
Insert:
3A | Section 12 - 47 | Payment to * religious practitioner |
15 Subsection 900 - 12(3) (after table item 3)
Insert:
3A | Section 12 - 47 | Payment to * religious practitioner |
16 Subsection 995 - 1(1)
Insert:
"religious practitioner" means:
(a) a minister of religion; or
(b) a student at an institution who is undertaking a course of instruction in the duties of a minister of religion; or
(c) a full - time member of a religious order; or
(d) a student at a college conducted solely for training persons to become members of religious orders.
17 Application
The amendments of the Income Tax Assessment Act 1997 made by this Schedule apply to any withholding payments mentioned in those amendments that an individual receives, or is entitled to receive, on or after 1 July 2002.
Taxation Administration Act 1953
18 Subsection 10 - 5(1) in Schedule 1 (after table item 3)
Insert:
3A | a payment to a * religious practitioner | 12 - 47 |
19 Subsection 12 - 1(1) in Schedule 1
After "12 - 45,", insert "12 - 47,".
20 Subsection 12 - 1(2) in Schedule 1
After "12 - 45,", insert "12 - 47,".
21 Subsection 12 - 1(3) in Schedule 1
After "12 - 45," insert "12 - 47,".
22 Subsection 12 - 5(2) in Schedule 1 (table item 1, column 2)
After "12 - 45", insert ", 12 - 47".
23 Subsection 12 - 5(2) in Schedule 1 (after table item 1)
Insert:
1A | section 12 - 35 or 12 - 45 | a payment for work or services | section 12 - 47 (a payment to a * religious practitioner) |
24 After section 12 - 45 in Schedule 1
Insert:
12 - 47 Payment to religious practitioners
An entity must withhold an amount from a payment it makes to a * religious practitioner for an activity, or a series of activities, if:
(a) the activity, or series of activities, is done by the religious practitioner in pursuit of his or her vocation as a religious practitioner; and
(b) the activity, or series of activities, is done by the religious practitioner as a member of a religious institution; and
(c) the payment is made by the entity in the course or furtherance of an enterprise that the entity carries on.
25 Application
The amendments of the Taxation Administration Act 1953 made by this Schedule apply to payments made on or after 1 July 2002.