Commonwealth Consolidated Acts Commonwealth Consolidated ActsIncome Tax Assessment Act 1936
1 Section 102MD
Repeal the section, substitute:
102MD Exempt institution that is eligible for a refund not treated as exempt entity
For the purposes of this Division, treat an entity as not being an exempt entity if:
(a) the entity is an exempt institution that is eligible for a refund (within the meaning of the Income Tax Assessment Act 1997 ); or
(b) the entity is treated as such an exempt institution that is eligible for a refund .
Example: The Future Fund Board is treated as an exempt institution that is eligible for a refund for the purposes of the Income Tax Assessment Act 1997 (see section 84B of the Future Fund Act 2006 ) .
Income Tax Assessment Act 1997
2 Section 295 - 173
Repeal the section, substitute:
295 - 173 Exception--trustee contributions
Item 1 of the table in section 295 - 160 does not include in assessable income:
(a) a contribution made by an entity that was, when the contribution was made, the trustee of a * complying superannuation fund, a * complying approved deposit fund or a * pooled superannuation trust; or
(b) a contribution made out of the * complying superannuation assets, or out of the * segregated exempt assets, of a * life insurance company .
Part 2 -- Repeal of Division 6B
Income Tax Assessment Act 1936
3 Division 6B of Part III
Repeal the Division .
Part 3 -- Amendments consequential on the repeal of Division 6B
Development Allowance Authority Act 1992
4 Subparagraph 93I(2)(a)(ii)
Omit "a corporate unit trust (within the meaning of section 102J of the Tax Act), or" .
5 Subsection 3(1) (definition of prescribed unit trust )
Repeal the definition, substitute:
"prescribed unit trust" means a trust estate that is a public trading trust within the meaning of Division 6C of Part III of the Assessment Act .
Income Tax Assessment Act 1936
6 Subsection 6(1) ( paragraph ( b) of the definition of assessment )
Repeal the paragraph .
7 Subsection 6(1) ( paragraph ( b) of the definition of full self - assessment taxpayer )
Repeal the paragraph .
8 Subsection 6(1) ( paragraph ( b) of the definition of passive income )
Omit "6B or" .
9 Subparagraph 47A(16)(c)(ii)
Repeal the subparagraph .
10 Sub - subparagraph 47A(18)(d)(ii)(B)
Repeal the sub - subparagraph .
11 Section 102AAB (definition of corporate unit trust )
Repeal the definition .
12 Section 102AAB ( paragraph ( a) of the definition of net income )
Repeal the paragraph .
13 Section 102AAB ( paragraph ( b) of the definition of resident trust estate )
Omit "a corporate unit trust, or" .
14 Sub - subparagraph 102AAE(2)(b)(ii)(C)
Repeal the sub - subparagraph .
15 Paragraph 102AAM(2)(b)
Repeal the paragraph .
16 Sub - subparagraph 102AAM(4)(b)(ii)(C)
Repeal the sub - subparagraph .
17 Sub - subparagraph 102R(1)(a)(iv)(B)
Omit "income; and", substitute "income; or" .
18 Subparagraph 102R(1)(a)(v)
Repeal the subparagraph .
19 Sub - subparagraph 102R(1)(b)(iii)(B)
Omit "income; and", substitute "income . " .
20 Subparagraph 102R(1)(b)(iv)
Repeal the subparagraph .
21 Subsection 102T(4)
Repeal the subsection .
22 Paragraph 124ZM(3)(b)
Repeal the paragraph .
23 Subparagraph 159GZZZZG(1)(a)(ii)
Repeal the subparagraph .
24 Paragraph 338(b)
Omit "a corporate unit trust for the purposes of Division 6B of Part III, or" .
25 Paragraph 371(7)(a)
Repeal the paragraph .
26 Paragraph 446(1)(b)
Omit "6B or" .
27 Paragraph 459A(3)(a)
Repeal the paragraph .
28 Paragraph 460(1)(a)
Repeal the paragraph .
Income Tax Assessment Act 1997
29 Section 9 - 1 ( table item 12)
Repeal the item .
30 Subsection 9 - 5(1) ( table item 7)
Repeal the item .
31 Section 10 - 5 (table item headed "trusts")
Omit:
trustees' liability to tax ....................... | 98, 99, 99A, 102, 102K, 102S |
substitute:
trustees' liability to tax ....................... | 98, 99, 99A, 102, 102S |
32 Section 12 - 5 (table item headed "trusts")
Omit:
unit trusts ................................ | 102D to 102L |
33 Subsection 104 - 70(9)
Omit "a * corporate unit trust or" .
34 Subparagraph 118 - 427(12)(b)(ii)
Omit "a * corporate unit trust or" .
35 Paragraph 124 - 1045(1)(b)
Omit "6B or" .
36 Paragraph 124 - 1045(1)(c)
Omit "6B or" .
37 Subsection 124 - 1045(1) (note)
Repeal the note, substitute:
Note: Division 6C of Part III of the Income Tax Assessment Act 1936 deals with taxing public trading trusts in the same way as companies .
38 Subdivision 125 - D (heading)
Repeal the heading, substitute:
Subdivision 125 - D -- Public trading trusts
39 Section 125 - 230 (heading)
Repeal the heading, substitute:
125 - 230 Application of Division to public trading trusts
40 Section 125 - 230
Omit "102K or" .
41 Subsection 126 - 235(2) (heading)
Repeal the heading, substitute:
Public trading trusts
42 Subsection 126 - 235(2)
Omit "102K or" .
43 Subsection 130 - 20(4)
Repeal the subsection, substitute:
(4) The modifications in this section are not made if, for the income year in which the bonus equitie s are issued, the unit trust is a public trading trust within the meaning of section 102R of the Income Tax Assessment Act 1936 .
Note: Subsection 26BC(9E) of the Income Tax Assessment Act 1936 (about securities lending arrangements) modifies the operation of this section .
44 Paragraph 202 - 20(c)
Repeal the paragraph .
45 Paragraph 205 - 25(1)(b)
Repeal the paragraph .
46 Paragraph 207 - 75(1)(d)
Repeal the paragraph .
47 Paragraph 208 - 155(2)(b)
Omit " * corporate unit trust or" .
48 Section 275 - 110 (heading)
Repeal the heading, substitute:
275 - 110 MIT not to be trading trust
49 Subsection 275 - 110(1)
Repeal the subsection, substitute:
(1) An entity that is a trust meets the requirement in this section at a time if the entity is not, at that time, a trading trust for the purposes of Division 6C of Part III of the Income Tax Assessment Act 1936 in relation to that income year .
50 Subsection 275 - 110(2)
Omit " paragraph ( 1)(b)", substitute " subsection ( 1) " .
51 Subsection 392 - 20(5)
Repeal the subsection, substitute:
Public trading trusts
(5) You are not taken to carry on a * primary production business carried on by the trustee of a public trading trust (as defined in section 102R of the Income Tax Assessment Act 1936 , which deals with public trading trusts) .
52 Section 703 - 25 (table items 2 and 3)
Repeal the items, substitute:
2 | A unit trust (except a * public trading trust for the income year) | The trust must be: (a) a resident trust estate for the income year for the purposes of Division 6 of Part III of the Income Tax Assessment Act 1936 ; and (b) a * resident trust for CGT purposes for the income year |
3 | A * public trading trust for the income year | The trust must be a * resident unit trust for the income year |
53 Section 713 - 120
Omit "corporate unit trust or" .
54 Subsection 713 - 125(2)
Omit " * corporate unit trust, or" .
55 Paragraph 713 - 130(b)
Omit "a * corporate unit trust or" .
56 Subsection 725 - 150(6)
Repeal the subsection, substitute:
Application of subsections ( 3), (4) and (5)
(6) Subsection ( 3) does not apply if, for the income year in which the interest is issued, the issuing entity is a public trading trust within the meaning of section 102R of the Income Tax Assessment Act 1936 .
57 Subparagraph 768 - 5(1)(c)(ii)
Omit " * corporate unit trust or" .
58 Subparagraph 768 - 5(2)(e)(ii)
Omit " * corporate unit trust or" .
59 Paragraph 802 - 30(1)(b)
Omit " * corporate unit trust or" .
60 Paragraph 960 - 115(c)
Repeal the paragraph .
61 Subsection 960 - 120(1) ( table item 3)
Repeal the item .
62 Subsection 960 - 130(1) (table item 3)
Omit "a * corporate unit trust or" .
63 Subsection 960 - 130(1) (table item 4)
Repeal the item .
64 Paragraph 960 - 140(c)
Omit " * corporate unit trust or" .
65 Subsection 995 - 1(1) ( paragraph ( c) of the definition of Australian corporate tax entity )
Omit "a * corporate unit trust or" .
66 Subsection 995 - 1(1) (definition of corporate unit trust )
Repeal the definition .
67 Subsection 995 - 1(1) (definition of resident unit trust )
Repeal the definition, substitute:
"resident unit trust" has the meaning given by section 102Q of the Income Tax Assessment Act 1936 .
68 Subsection 3(1) (definition of corporate unit trust )
Repeal the definition .
69 Subsection 3(1) (definition of prescribed unit trust )
Repeal the definition, substitute:
"prescribed unit trust" , in relation to a year of income, means a trust estate that is a public trading trust in relation to the year of income .
70 Section 24
Repeal the section .
International Tax Agreements Act 1953
71 Subsection 3(1) (definition of prescribed trust estate )
Repeal the definition, substitute:
"prescribed trust estate" , in relation to a year of income, means a trust estate that is a public trading trust, within the meaning of Division 6C of Part III of the Income Tax Assessment Act 1936 , in relation to the year of income .
72 Subsection 17A(3) (definition of unit trust dividend )
Omit "6B or" .
Taxation Administration Act 1953
73 Subsection 45 - 280(4) in Schedule 1
Omit "102K or" .
74 Subsection 45 - 450(3) in Schedule 1
Omit "a * corporate unit trust, or" .
75 Transitional rule for 20% tracing requirement and repeal of Division 6B --imputation
(1) This item applies if at a time (the cessation time ), on or after the commencement of this Schedule, either:
(a ) section 102K of the Income Tax Assessment Act 1936 ceases to apply to the trustee of a trust because of the repeal of that section by Part 2 of this Schedule; or
(b ) section 102S of that Act ceases to apply to the trustee of a trust because of the amendment made by Part 1 of this Schedule .
(2) Subitems ( 3) and (3A) apply if:
(a) an event happens in respect of the trust that is described in:
(i) the table in subsection 205 - 15( 1 ) of the Income Tax Assessment Act 1997 ; or
(ii) the table in subsection 205 - 30 (1) of that Act; and
(b) the event happens on or after the cessation time but before 1 July 2019 ; and
(c) the event is:
(i) the trust paying income tax for an income year starting before 1 July 2016; or
(ii) the trust paying a PAYG instalment in respect of income tax for an income year starting before 1 July 2016; or
(ii i ) the trust receiving a refund of income tax for an income year starting before 1 July 2016; or
(iv) the trust franking a distribution ; or
(v) the trust ceasing to be a franking entity.
(2A) However, subparagraph ( 2)(c)(v) does not apply unless the trust's franking account is in surplus immediately before the trust ceases to be a franking entity.
(3) For the purposes of determining whether a franking credit or franking debit arises in the trust's franking account as a result of the event:
(a) treat the trust as a corporate tax entity at the time the event happens; and
(b) treat the trust as satisfying the residency requirement in section 205 - 25 of the Income Tax Assessment Act 1997 for the income year in which the event happens .
(3A) If the event is an event described in item 4 of the table in subsection 205 - 30(1) of the Income Tax Assessment Act 1997 , treat the event as happening on 1 July 2019.
( 4 ) Subitems ( 5) and (6) apply if:
(a) the trust makes a distribution on or after the cessation time but before 1 July 2019 ; and
( b ) the trust's franking account is in surplus just before the trust makes the distribution ; and
(c) the distribution is not made out of income derived in relation to the 2016 - 17 income year or a later income year.
( 5 ) For the purposes of determining whether the trust franks the distribution as a result of the event :
(a) treat the trust as a corporate tax entity at the time it makes the distribution; and
(b) treat the trust as satisfying the residency requirement in section 202 - 20 of the Income Tax Assessment Act 1997 at the time it makes the distribution .
(6) Treat a beneficiary of the trust who receives the distribution as receiving, for the purposes of the income tax law, a dividend from a corporate tax entity.
Note: As a result, the trust will satisfy the requirement in paragraph 202 - 5(a) of that Act in respect of the distribution . If the other requirements in section 202 - 5 of that Act are satisfied in respect of the distribution, this means that the trust franks the distribution .