Commonwealth Consolidated Acts Commonwealth Consolidated ActsIncome Tax Assessment Act 1997
1 Section 152 - 5
Omit "then a small business entity", substitute "an entity".
2 Paragraph 152 - 5(a)
Repeal the paragraph, substitute:
(a) the entity must be a small business entity or a partner in a partnership that is a small business entity, or the net value of assets that the entity and related entities own must not exceed $6,000,000;
3 Paragraph 152 - 10(1)(c)
Repeal the paragraph, substitute:
(c) at least one of the following applies:
(i) you are a * small business entity for the income year;
(ii) you satisfy the maximum net asset value test (see section 152 - 15);
(iii) you are a partner in a partnership that is a small business entity for the income year and the CGT asset is an asset of the partnership;
Note: For the meaning of small business entity , see Subdivision 328 - C.
4 Section 152 - 15
Omit "$5,000,000", substitute "$6,000,000".
5 Paragraph 152 - 15(c)
Omit " * small business CGT affiliates", substitute " * affiliates".
6 Paragraph 152 - 15(c)
Omit "small business CGT affiliates", substitute "affiliates".
7 Paragraph 152 - 20(2)(a)
Omit "a * small business CGT affiliate", substitute "an * affiliate".
8 Subparagraph 152 - 20(2)(b)(i)
Omit " * small business CGT affiliate", substitute " * affiliate".
9 Paragraph 152 - 20(3)(a)
Omit " * small business CGT affiliate", substitute " * affiliate".
10 Paragraph 152 - 20(3)(b)
Omit "small business CGT affiliate", substitute "affiliate".
11 Subsection 152 - 20(4)
Omit " * small business CGT affiliate", substitute " * affiliate".
12 Subsection 152 - 20(4) (example)
Omit "small business CGT affiliate", substitute "affiliate".
13 Section 152 - 25
Repeal the section.
14 Section 152 - 30
Repeal the section.
15 Subparagraph 152 - 40(1)(a)(ii)
Omit " * small business CGT affiliate", substitute " * affiliate".
16 Paragraph 152 - 40(1)(b)
Omit "small business CGT affiliate", substitute "affiliate".
17 Subsection 152 - 40(1) (note)
Omit "Note", substitute "Note 1".
18 At the end of subsection 152 - 40(1)
Add:
Note 2: The meaning of connected with in subparagraph (1)(a)(ii) and paragraph (b) is affected by section 152 - 42.
19 After subsection 152 - 40(1)
Insert:
(1A) The following apply to a * CGT asset that you own if you are an individual:
(a) the asset (whether it is tangible or intangible) is taken to be used, or held ready for use, in the course of carrying on a business by your * affiliate if the asset is used, or held ready for use, in the course of carrying on a business by your * spouse or child under 18 years;
(b) if the asset is an intangible asset--the asset is taken to be inherently connected with a business that your affiliate carries on (for example, goodwill or the benefit of a restrictive covenant) if the asset is inherently connected with a business that your spouse or child under 18 years carries on.
20 Subsection 152 - 40(2)
After "subsection (1)", insert "or (1A)".
21 After section 152 - 40
Insert:
152 - 42 Trustee of discretionary trust may nominate beneficiaries to be controllers of trust
(1) This section applies for the purposes of determining, for the purposes of subparagraph 152 - 40(1)(a)(ii) or paragraph 152 - 40(1)(b), whether an entity is * connected with you.
Note: This affects whether a CGT asset that you own satisfies the active asset test.
(2) The trustee of a discretionary trust may nominate not more than 4 beneficiaries as being controllers of the trust for an income year (the relevant income year ) for which the trustee did not make a distribution of income or capital if the trust had a * tax loss, or no taxable income, for that year.
(3) A nomination under subsection (2) has effect as if each nominated beneficiary controlled the trust for the relevant income year in a way described in section 328 - 125.
Note: This means each nominated beneficiary is connected with the trust.
(4) A nomination under subsection (2) must:
(a) be in writing; and
(b) be signed by the trustee and by each nominated beneficiary.
22 Subsection 165 - 115AA(1)
Omit "$5,000,000", substitute "$6,000,000".
23 Subsection 165 - 115GC(4)
Omit "$5,000,000", substitute "$6,000,000".
24 Subsection 165 - 115GC(8)
Omit "because of the $10,000 or small business entity exclusions", substitute "because of the $10,000 exclusion, or because you satisfy the maximum net asset value test in section 152 - 15".
25 Paragraph 727 - 15(8)(b)
Omit "$5 million", substitute "$6 million".
26 Subsection 995 - 1(1) (definition of small business CGT affiliate )
Repeal the definition.
Part 2 -- Consequential amendments
A New Tax System (Wine Equalisation Tax) Act 1999
27 Paragraph 19 - 20(1)(a)
Omit "subsection 152 - 30(8)", substitute "subsection 328 - 125(8)".
28 Section 33 - 1 (definition of connected with )
Omit "section 152 - 30", substitute "section 328 - 125".
Income Tax Assessment Act 1997
29 Subsection 104 - 197(2) (example)
Omit "section 152 - 30", substitute "section 328 - 125".
30 Subsection 152 - 305(3)
Omit "Public entities of a kind referred to in subsection 152 - 30(9)", substitute "Entities of a kind referred to in subsection 328 - 125(8)".
31 Application
(1) The amendments made by Part 1 and items 29 and 30 of Part 2 of this Schedule apply to CGT events happening in the 2007 - 08 income year and later income years.
(2) The amendments made by items 27 and 28 of Part 2 of this Schedule apply in relation to producer rebates for the 2007 - 08 financial year and later financial years.