Inserts for
Tax Laws Amendment (2013 Measures No. 1) Bill 2013: miscellaneous amendments

EXPOSURE DRAFT

Commencement information	
Column 1	Column 2	Column 3	
Provision(s)	Commencement	Date/Details	
1.  			
2.  Schedule ??, item 1	Immediately after the commencement of Schedule 2 to the Clean Energy (Tax Laws Amendments) Act 2011.	1 July 2012	
3.  Schedule ??, item 2	The day this Act receives the Royal Assent.		
4.  Schedule ??, item 3	Immediately after the commencement of the Excise Tariff Amendment (Condensate) Act 2011.	24 November 2011	
5.  Schedule ??, items 4 to 30	The day this Act receives the Royal Assent.		
6.  Schedule ??, item 31	Immediately after the commencement of item 1 of Schedule 2 to the Superannuation Laws Amendment (Capital Gains Tax Relief and Other Efficiency Measures) Act 2012.		
7.  Schedule ??, items 32 to 35	The day this Act receives the Royal Assent.		
8.  Schedule ??, items 36	Immediately after the commencement of item 14 of Schedule 1 to the Tax Laws Amendment (2011 Measures No. 9) Act 2012.	22 March 2012	
9.  Schedule ??, items 37 to 40	Immediately after the commencement of Division 2 of Part 25 of Schedule 6 to the Tax Laws Amendment (2011 Measures No. 9) Act 2012.	21 March 2012	
10.  Schedule ??, items 41 to 49	The day this Act receives the Royal Assent.		
The following section will be inserted into the body of the Bill:
4  Amendment of assessments
		Section 170 of the Income Tax Assessment Act 1936 does not prevent the amendment of an assessment if:
	(a)	the assessment was made before the commencement of section 1 of this Act; and
	(b)	the amendment is made within 2 years after that commencement; and
	(c)	the amendment is made for the purpose of giving effect to items 11 to 15 of Schedule ?? (miscellaneous amendments) to this Act.
Schedule ??—Miscellaneous amendments
Part 1—General amendments
A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999
1  Paragraphs 15(1)(c) and 16(2)(c)
Before “20,542”, insert “$”.
Crimes (Taxation Offences) Act 1980
2  Subsection 3(1) (paragraph (b) of the definition of income tax)
Before “section 170AA”, insert “former”.
Excise Tariff Amendment (Condensate) Act 2011
3  Item 4 of Schedule 1
After “At the end of the Act”, insert “(before The Schedule)”.
Fringe Benefits Tax Assessment Act 1986
4  Subsection 136(1) (definition of Chief Executive Centrelink)
Repeal the definition.
Fuel Tax Act 2006
5  Subsections 43‑10(11) and (12)
Omit “*road user charge”, substitute “road user charge”.
Income Tax Assessment Act 1936
6  Subsection 159P(4) (subparagraphs (g)(i) and (ii) of the definition of medical expenses)
After “spectacles”, insert “or contact lenses”.
Income Tax Assessment Act 1997
7  Section 10‑5 (table item headed “balancing adjustment”)
Omit “industrial property,”.
8  Section 10‑5 (table item headed “industrial property”)
Repeal the item.
9  Section 10‑5 (table item headed “residual value”)
Repeal the item.
10  Section 102‑20 (the note 5 inserted by item 69 of Schedule 1 to the Tax Laws Amendment (Taxation of Financial Arrangements) Act 2009)
Omit “Note 5”, substitute “Note 6”.
11  Paragraph 250‑55(b)
Repeal the paragraph, substitute:
	(b)	the end user is:
	(i)	an entity that is a foreign resident; or
	(ii)	an entity that is an Australian resident, to the extent that the entity carries on *business in a foreign country at or through a *permanent establishment of the entity in that country.
12  Subparagraph 250‑60(1)(b)(ii)
Omit “(non‑resident)”, substitute “(foreign resident or business)”.
13  Subparagraph 250‑60(2)(b)(ii)
After “(foreign resident”, insert “or business”.
14  Paragraph 250‑115(3)(b)
After “foreign residents”, insert “or businesses”.
15  Application of amendments
The amendments made by items 11 to 14 apply in relation to end users of assets on or after 1 July 2007.
16  Paragraph 727‑95(a)
Omit “a non‑arm’s length dealing”, substitute “a dealing that is not at *arm’s length”.
17  Subsection 995‑1(1) (definition of natural resource, first occurring)
Repeal the definition.
Income Tax Rates Act 1986
18  Subsection 3(1)
Insert:
net income phase‑out limit has the meaning given by subsection 14(3).
19  Subsection 3(1)
Insert:
non‑resident phase‑out limit has the meaning given by subsection 15(8).
20  Subsection 3(1)
Insert:
resident phase‑out limit has the meaning given by subsection 13(10).
21  Subsection 13(2)
Omit “$1,307”, substitute “the resident phase‑out limit”.
22  Paragraphs 13(5)(b), (6)(c) and (8)(b)
Omit “$1,307”, substitute “the resident phase‑out limit”.
23  At the end of section 13
Add:
	(10)	The resident phase‑out limit is the following amount rounded down to the nearest dollar:

24  Paragraph 14(2)(c)
Omit “$594”, substitute “the net income phase‑out limit”.
25  At the end of section 14
Add:
	(3)	The net income phase‑out limit is the following amount rounded down to the nearest dollar:

26  Paragraphs 15(2)(b), (4)(d) and (6)(b)
Omit “$663”, substitute “the non‑resident phase‑out limit”.
27  At the end of section 15
Add:
	(8)	The non‑resident phase‑out limit is the following amount rounded down to the nearest dollar:

28  Application of amendments
The amendments made by items 18 to 27 apply in relation to the 2012‑13 income year and later income years.
New Business Tax System (Former Subsidiary Tax Imposition) Act 1999
29  Paragraphs 4(2)(a) and (b)
Omit “section 170AA”, substitute “former section 170AA”.
New Business Tax System (Venture Capital Deficit Tax) Act 2003
30  Subsection 2(1) (table item 2)
Omit “(No. 2)”.
Superannuation Laws Amendment (Capital Gains Tax Relief and Other Efficiency Measures) Act 2012
31  Item 1 of Schedule 2
Omit “or (g)” (wherever occurring).
Taxation Administration Act 1953
32  Subparagraph 426‑102(1)(a)(ii) in Schedule 1
Before “is prescribed”, insert “each trustee of the trust”.
Taxation (Interest on Overpayments and Early Payments) Act 1983
33  Subsection 3C(1) (definition of relevant tax) (table item 15)
Omit “section 170AA of the Tax Act”, substitute “former section 170AA of the Income Tax Assessment Act 1936”.
34  Subparagraph 8A(1)(a)(vb)
Omit “or 170AA”, substitute “, or former section 170AA,”.
Tax Laws Amendment (2011 Measures No. 9) Act 2012
35  At the end of section 4
Add:
	(4)	Section 170 of the Income Tax Assessment Act 1936 does not prevent the amendment of an assessment if:
	(a)	the assessment was made before the commencement of Part 28 of Schedule 6 to this Act; and
	(b)	the amendment is made within 2 years after that commencement; and
	(c)	the amendment is made for the purpose of giving effect to that Part.
36  Item 14 of Schedule 1
Omit “self‑managed superannuation funds”, substitute “self managed superannuation funds”.
37  Item 200 of Schedule 6
Omit “self managed superannuation fund (within the meaning of the Superannuation Industry (Supervision) Act 1993)”, substitute “self managed superannuation fund (within the meaning of the Superannuation Industry Supervision Act 1993)”.
38  Item 201 of Schedule 6
Omit “self managed superannuation fund (within the meaning of the Superannuation Industry (Supervision) Act 1993)”, substitute “self managed superannuation fund (within the meaning of the Superannuation Industry Supervision Act 1993)”.
39  Item 202 of Schedule 6
Omit “self managed superannuation fund (within the meaning of the Superannuation Industry (Supervision) Act 1993)”, substitute “self managed superannuation fund (within the meaning of the Superannuation Industry Supervision Act 1993)”.
40  Item 203 of Schedule 6
Omit “self managed superannuation fund (within the meaning of the Superannuation Industry (Supervision) Act 1993)”, substitute “self managed superannuation fund (within the meaning of the Superannuation Industry Supervision Act 1993)”.
Tax Laws Amendment (Income Tax Rates) Act 2012
41  Subsection 2(1) (table item 3)
Repeal the item.
42  Part 2 of Schedule 1
Repeal the Part.

Part 2—Asterisking amendments
Income Tax Assessment Act 1997
43  Amendments relating to asterisking
The provisions of the Income Tax Assessment Act 1997 listed in the table are amended as set out in the table.

Asterisking amendments	
Item	Provision	Omit:	Substitute:	
1	Paragraph 43‑170(2)(b)	arm’s length	*arm’s length	
2	Paragraph 70‑20(b)	arm’s length	*arm’s length	
3	Paragraph 70‑30(1)(a)	arm’s length	*arm’s length	
4	Paragraph 70‑110(1)(a)	arm’s length	*arm’s length	
5	Paragraph 70‑120(6)(b)	arm’s length	*arm’s length	
6	Paragraph 87‑40(2)(e)	arm’s length	*arm’s length	
7	Paragraph 112‑20(1)(c)	arm’s length	*arm’s length	
8	Paragraph 112‑20(2)(a)	arm’s length	*arm’s length	
9	Subparagraph 116‑30(2)(b)(i)	arm’s length	*arm’s length	
10	Paragraph 207‑128(1)(e)	arm’s length	*arm’s length	
11	Subsection 243‑20(7)	arm’s length	*arm’s length	
12	Paragraph 243‑25(1)(d)	arm’s length	*arm’s length	
13	Subparagraph 420‑20(1)(b)(i)	arm’s length	*arm’s length	
14	Subparagraph 420‑30(c)(i)	arm’s length	*arm’s length	
15	Subsection 620‑40(2)	arm’s length	*arm’s length	
16	Subparagraph 707‑325(4)(b)(i)	arm’s length	*arm’s length	
17	Paragraph 775‑120(a)	arm’s length	*arm’s length	
18	Subparagraph 820‑105(1)(b)(ii)	arm’s length	*arm’s length	
19	Paragraph 820‑105(3)(h)	arm’s length	*arm’s length	
20	Subparagraph 820‑215(1)(b)(ii)	arm’s length	*arm’s length	
21	Paragraph 820‑215(3)(h)	arm’s length	*arm’s length	
22	Paragraph 820‑315(1)(d)	arm’s length	*arm’s length	
23	Paragraph 820‑315(3)(f)	arm’s length	*arm’s length	
24	Paragraph 820‑410(1)(d)	arm’s length	*arm’s length	
25	Paragraph 820‑410(3)(f)	arm’s length	*arm’s length	
26	Paragraph 820‑910(3)(d)	arm’s length	*arm’s length	
27	Paragraph 820‑942(2)(g)	arm’s length	*arm’s length	
28	Subsections 960‑280(1), (2) and (4)	a quarter	a *quarter	
29	Subsection 960‑285(6)	a quarter	a *quarter	
44  Subsection 960‑275(1) (formula)
Repeal the formula, substitute:

45  Subsection 960‑275(1A) (formula)
Repeal the formula, substitute:

46  Subsection 960‑275(2) (formula)
Repeal the formula, substitute:

47  Subsection 960‑275(3) (formula)
Repeal the formula, substitute:

48  Subsection 960‑285(3A) (formula)
Repeal the formula, substitute:

49  Subsection 960‑285(4) (formula)
Repeal the formula, substitute: