Commonwealth Consolidated Acts Commonwealth Consolidated ActsPart 1 -- Amendment of the Income Tax (Transitional Provisions) Act 1997
1 After Division 30
Insert:
Division 32 -- Entertainment expenses
Table of sections
32-1 Application of Division 32 of the Income Tax Assessment Act 1997
32-1 Application of Division 32 of the Income Tax Assessment Act 1997
Division 32 of the Income Tax Assessment Act 1997 applies to assessments for the 1997-98 income year and later income years.
[The next Division is Division 34.]
Part 2 -- Consequential amendment of the Income Tax Assessment Act 1997
2 Section 10-5 (table item headed "benefits")
Omit " 26AAAC ", substitute "32-70".
3 Section 12-5 (table item headed "entertainment")
Omit " 51AE ", substitute "Division 32".
4 Subsection 43-50(4)
Repeal the subsection, substitute:
(4) Section 32-15 treats some property that is used for * entertainment as not being used for the * purpose of producing assessable income.
5 Subsection 995- 1(1)
Insert:
"business meeting" has the meaning given by subsections 32-65(3) and (4).
6 Subsection 995- 1(1)
Insert:
"dining facility" has the meaning given by section 32-60.
7 Subsection 995- 1(1)
Insert:
"entertainment" has the meaning given by section 32-10.
8 Subsection 995- 1(1)
Insert:
"goes for at least 4 hours" , in relation to a * seminar, has the meaning given by subsection 32-65(2).
9 Subsection 995- 1(1)
Insert:
"in-house dining facility" has the meaning given by section 32-55.
10 Subsection 995- 1(1) (at the end of the definition of purpose of producing assessable income )
Add:
Note 1: These provisions treat use of property as being for the purpose of producing assessable income:
Note 2: These provisions treat use of property as not being for the purpose of producing assessable income:
11 Subsection 995- 1(1)
Insert:
"seminar" has the meaning given by subsection 32-65(1).
Part 3 -- Consequential amendment of the Income Tax Assessment Act 1936
12 Subsection 21A(5) (paragraph (a) of the definition of non - deductible entertainment expenditure )
Omit "subsection 51AE(4)", substitute "section 32 - 5 of the Income Tax Assessment Act 1997 ".
13 Subsection 21A(5) (paragraph (b) of the definition of non - deductible entertainment expenditure )
Omit "subsection", substitute "section".
14 Before subsection 26AAAC(1)
Insert:
(1A) This section does not apply to a meal provided in the 1997-98 year of income or a later year of income.
Note: Section 32-70 of the Income Tax Assessment Act 1997 is about when amounts are included in your assessable income for meals provided to persons in an in-house dining facility.
15 Before subsection 51AE(1)
Insert:
(1A) This section does not apply to an assessment for the 1997-98 year of income or a later year of income.
Note: Division 32 of the Income Tax Assessment Act 1997 deals with the deductibility of entertainment expenses.
Part 4 -- Consequential amendments of other Acts
Fringe Benefits Tax Assessment Act 1986
16 Paragraph 37CE(1)(f)
Omit all the words after "of", substitute "section 32- 55 of the Income Tax Assessment Act 1997 ".
17 Paragraph 63A(1)(b)
Omit "(within the meaning of subsection 51AE(3) of the Income Tax Assessment Act 1936 )".
18 Subsection 136(1) (definition of business premises )
Omit all the words after paragraph (d).
19 Subsection 136(1) (definition of deductible expenses )
After "28", insert ", 32".
20 Subsection 136(1)
Insert:
"entertainment" has the meaning given by section 32-10 of the Income Tax Assessment Act 1997 .
21 Subsection 136(1) (definition of non-deductible entertainment expenditure )
Repeal the definition, substitute:
"non-deductible entertainment expenditure" means a loss or outgoing to the extent to which:
(a) one or other of these provisions applies to it, or would apply if it were incurred in producing assessable income:
(i) subsection 51AE(4) of the Income Tax Assessment Act 1936 ;
(ii) section 32-5 of the Income Tax Assessment Act 1997 ; and
(b) apart from those provisions, it would be deductible under
section 51 of the Income Tax Assessment Act 1936 or
section 8-1 of the
Income Tax Assessment Act 1997 , or would be if it were incurred in producing
assessable income;
(on the assumption that subsection 51AE(5AA) of the Income Tax Assessment Act 1936 and section 32-20 of the Income Tax Assessment Act 1997 had not been enacted).
22 Section 152
Repeal the section.
23 Application
The amendments made by items 16 to 22 apply to the providing of entertainment on or after 1 July 1997 .