Source: https://www.legislation.gov.au/Details/C2004A01330
Timestamp: 2019-11-21 03:42:12
Document Index: 718132473

Matched Legal Cases: ['art 2', 'art 1', 'art 2', 'art 2', 'art 1', 'art 3', 'art 5', 'art 5']

Details: C2004A01330
- C2004A01330
Act No. 95 of 2004 as made
Originating Bill: Tax Laws Amendment (2004 Measures No. 1) Bill 2004
Date of Assent 29 Jun 2004
C2004A01330
Schedule 1—Medical expenses offset 4
Schedule 2—Deduction for transport between workplaces 5
Schedule 3—Small business CGT relief and discretionary trusts 9
Schedule 4—Amendment of the Energy Grants (Credits) Scheme (Consequential Amendments) Act 2003 13
Schedule 5—Net input tax credits and capital gains tax 16
Schedule 6—Confidentiality of ABN information 18
Schedule 7—Deductions for contributions relating to fund‑raising events 19
Part 2—Application of amendments 19
Schedule 8—Distributions to certain entities 19
Part 1—Division 7A amendments 19
Part 2—Application 19
Schedule 9—Deductions for dividends on‑paid to non‑resident owners 19
Schedule 10—Endorsement of charities etc. 19
A New Tax System (Australian Business Number) Act 1999 19
A New Tax System (Goods and Services Tax) Act 1999 19
Fringe Benefits Tax Assessment Act 1986 19
Part 2—Application and transitional provisions 19
Schedule 11—Specific gift recipients 19
[Assented to 29 June 2004]
Schedule 1—Medical expenses offset
The amendment made by this Schedule applies, and is taken to have applied, in relation to the 2002‑03 income year and later income years.
Schedule 2—Deduction for transport between workplaces
1 Section 12‑5 (table item headed “car expenses”)
“12% of original value” method.............................................
2 Section 12‑5 (after table item headed “transfer pricing”)
..... incurred in travel between workplaces...........................................
25‑100 Travel between workplaces
(1) If you are an individual, you can deduct a *transport expense to the extent that it is incurred in your *travel between workplaces.
(2) Your travel between workplaces is travel directly between 2 places, to the extent that:
(a) while you were at the first place, you were:
(i) engaged in activities to gain or produce your assessable income; or
(ii) engaged in activities in the course of carrying on a *business for the purpose of gaining or producing your assessable income; and
(b) the purpose of your travel to the second place was to:
(i) engage in activities to gain or produce your assessable income; or
(ii) engage in activities in the course of carrying on a business for the purpose of gaining or producing your assessable income;
(3) Travel between 2 places is not travel between workplaces if one of the places you are travelling between is a place at which you reside.
(4) Travel between 2 places is not travel between workplaces if, at the time of your travel to the second place:
(a) the arrangement under which you gained or produced assessable income at the first place has ceased; or
(b) the *business in respect of which you engaged in activities at the first place has ceased.
(5) You cannot deduct expenditure under subsection (1) to the extent that the expenditure is capital, or of a capital nature.
4 Subsection 28‑25(3)
(3) Business kilometres are kilometres the *car travelled in the course of:
5 Subsection 28‑50(2)
(2) Business kilometres are kilometres the *car travelled in the course of:
6 Subsection 28‑75(2)
7 Subsection 28‑90(4)
(4) Business kilometres are kilometres the *car travelled in the course of:
8 At the end of subsection 900‑30(7) (before the notes)
; (c) expenditure you incur that entitles you to a deduction under section 25‑100 (transport expenses incurred in your travel between workplaces), other than *car expenses.
9 At the end of section 900‑30
Note 3: See Subdivision 900‑C for car expenses that are also transport expenses incurred in your travel between workplaces.
travel between workplaces has the meaning given by section 25‑100.
The amendments made by this Schedule apply to assessments for the 2001‑2002 income year and each later income year.
Schedule 3—Small business CGT relief and discretionary trusts
1 Paragraph 152‑30(2)(a)
Before “beneficially own”, insert “except where the other entity is a discretionary trust—”.
2 At the end of subsection 152‑30(2)
3 Subsection 152‑30(3)
After “subsection (2)”, insert “or (5)”.
4 Subsections 152‑30(5) and (6)
(5) An entity (the first entity) controls a discretionary trust if, for any of the 4 income years before the income year for which relief is sought for a *CGT event under this Division:
(ii) one or more of the first entity’s *small business CGT affiliates; or
(iii) the first entity and one or more of the first entity’s small business CGT affiliates;
(b) the amount paid or applied is at least 40% (the control percentage) of the total amount of income or capital paid or applied by the trustee for that income year.
(6) An entity does not control a discretionary trust because of subsection (5) if the entity is:
(6A) The trustee of a discretionary trust may, for an income year for which the trust had a *tax loss and for which the trustee did not pay or apply any income or capital of the trust, nominate not more than 4 beneficiaries as being controllers of the trust.
Note: The trust might not have had the funds to make a distribution for that income year, which would prevent it from being controlled in that year. The trustee may wish to make the nomination to ensure that a relevant CGT asset is treated as an active asset (see section 152‑40).
(6B) This section has effect as if each nominated beneficiary controlled the trust during the relevant income year in the way described in this section.
(6C) A nomination must be in writing and signed by the trustee and by each nominated beneficiary.
5 Subsection 152‑30(8)
(8) However, if an entity (the first entity) controls an entity of a kind referred to in subsection (9) (the public entity), this section does not, merely because of subsection (7), apply to the first entity as if it controlled any other entity that is controlled by the public entity.
(9) The kinds of entities are:
6 Subsection 152‑305(3)
Omit “(within the meaning of subsection 152‑30(6))”, substitute “of a kind referred to in subsection 152‑30(9)”.
(2) The subsection 152‑30(5) of the Income Tax Assessment Act 1997 inserted by this Schedule applies to assessments for the 1999‑2000, 2000‑01 and 2001‑02 income years as if the reference to any of the 4 income years before the income year for which relief is sought for a CGT event under Division 152 of that Act were a reference to the income year for which that relief is sought.
(a) a CGT event that happened before the assent day; and
(4) Despite subsection 103‑25(1) of the Income Tax Assessment Act 1997, any such choice must be made by the entity by the latest of:
(b) 12 months after the assent day; and
(5) The period within which the entity must acquire a replacement asset as mentioned in subsection 152‑420(1) or (2) of the Income Tax Assessment Act 1997 ends on the latest of:
(a) 2 years after the happening of the last CGT event in the income year for which the entity obtained the small business roll‑over; and
(6) The period within which a replacement asset the entity acquires must be an active asset as mentioned in subsection 152‑420(4) of the Income Tax Assessment Act 1997 (if it is not an active asset when acquired) ends on the latest of:
(1) This item applies to CGT events that happen no later than the end of the 2003‑04 income year.
(3) However, subsection 152‑30(6) inserted by item 4 of this Schedule applies to those CGT events.
Schedule 4—Amendment of the Energy Grants (Credits) Scheme (Consequential Amendments) Act 2003
Omit “This”, substitute “Subject to subitem (1A), this”.
Omit “a person”, substitute “an entity”.
Add “as in force on 1 July 2003 (including as affected by regulations under that Act commencing on that day)”.
(a) the on‑road alternative fuel is liquefied natural gas or biodiesel; or
(b) the entity purchased or imported into Australia the off‑road diesel fuel before 1 July 2002 for a use mentioned in paragraph 53(4)(a) of the Energy Grants (Credits) Scheme Act 2003 as in force on 1 July 2003.
(2) The Energy Grants (Credits) Scheme Act 2003 and regulations under that Act apply to fuel to which this item applies in the same way as they apply to on‑road diesel fuel, on‑road alternative fuel or off‑road diesel fuel purchased or imported into Australia on 1 July 2003.
Omit “the person” (wherever occurring), substitute “the entity”.
(a) the amendments made by this Schedule have the effect of reducing (the amount of the reduction being the recoupment amount) an entity’s entitlement to an energy grant (including to nil); and
(b) before the time at which this item commenced (the commencement time), an assessment was made under section 17 of the Product Grants and Benefits Administration Act 2000 of the entity’s entitlement to the energy grant;
(i) entitlements to grants and benefits within the meaning of the Product Grants and Benefits Administration Act 2000 that arose before the commencement time, where an assessment was not made before that time under section 17 of that Act of the entity’s entitlement to the grant or benefit;
Schedule 5—Net input tax credits and capital gains tax
1 At the end of section 17‑10
(2) However, the amount is not assessable income to the extent that, because it becomes a component of a *net input tax credit, a reduction is made under section 103‑30 (reduction of cost base etc. by net input tax credits).
2 At the end of section 27‑10
(4) However, you cannot deduct an amount under subsection (1) or (3) to the extent that, because it becomes a component of a *net input tax credit, a reduction is made under section 103‑30 (reduction of cost base etc. by net input tax credits).
103‑30 Reduction of cost base etc. by net input tax credits
Reduce the *cost base and *reduced cost base of a *CGT asset, and any other amount that could be involved in the calculation of an entity’s *capital gain or *capital loss, by the amount of any *net input tax credit of the entity in relation to that amount.
Note: Subsection 116‑20(5) deals with the effect of net GST on supplies for the purposes of capital proceeds.
4 Subsection 110‑25(1) (note)
5 At the end of subsection 110‑25(1)
Note 2: The cost base is reduced by net input tax credits: see section 103‑30.
6 Subsection 110‑45(3A)
7 Subsection 110‑50(3A)
8 At the end of subsection 110‑55(1)
Note: The reduced cost base is reduced by net input tax credits: see section 103‑30.
Schedule 6—Confidentiality of ABN information
Omit all the words after “purposes of”, substitute “carrying out functions of the Agency (within the meaning of that Act); or”.
Omit all the words after “purposes of”, substitute “carrying out functions of the Department; or”.
Schedule 7—Deductions for contributions relating to fund‑raising events
1 Subsection 20‑30(1) (after table item 1.8A)
item 7 of the table in section 30‑15
contributions relating to fund‑raising events
item 8 of the table in section 30‑15
contributions relating to fund‑raising auctions
2 Section 30‑15 (at the end of the table)
· the contribution is made in return for a right permitting you to attend, or participate in, a particular *fund‑raising event in Australia; or
· the contribution is made in return for a right permitting an individual (other than you) to attend, or participate in, a particular fund‑raising event in Australia.
(a) if the contribution is money—the amount of the contribution, reduced by the *GST inclusive market value, on the day you made the contribution, of the right to attend, or participate in, the fund‑raising event; or
(b) if the contribution is property that you purchased during the 12 months before making the contribution—the lesser of:
reduced by the GST inclusive market value, on the day you made the contribution, of the right to attend, or participate in, the fund‑raising event; or
(c) if the contribution is property valued by the Commissioner at more than $5,000 and you did not purchase the property during the 12 months before making the contribution—the value of the property as determined by the Commissioner, reduced by the GST inclusive market value, on the day you made the contribution, of the right to attend, or participate in, the fund‑raising event.
(a) if the contribution is money—the GST inclusive market value, on the day you made the contribution, of the right to attend, or participate in, the fund‑raising event must not exceed the lesser of:
· 10% of the amount of the contribution; and
(b) if the contribution is property that you purchased during the 12 months before making the contribution—the GST inclusive market value, on the day you made the contribution, of the right to attend, or participate in, the fund‑raising event must not exceed the lesser of:
· 10% of the lesser of the market value of the property on the day you made the contribution and the amount you paid for the property; and
(c) if the contribution is property valued by the Commissioner at more than $5,000 and you did not purchase the property during the 12 months before making the contribution—the GST inclusive market value, on the day you made the contribution, of the right to attend, or participate in, the fund‑raising event must not exceed $100; and
· the gift had been made for the same purpose for which funds were to be raised by the fund‑raising event;
(f) you cannot deduct more than 2 contributions in relation to the same fund‑raising event; and
(g) if the property is to be valued by the Commissioner—the requirements of section 30‑212 are satisfied.
· was a particular *fund‑raising event in Australia; or
· was held at a particular fund‑raising event in Australia; and
3 At the end of section 30‑15
(4) For the purposes of item 7 of the table in subsection (2), in working out the *GST inclusive market value of the right in question, disregard anything that would prevent or restrict conversion of the right to money.
(5) For the purposes of item 8 of the table in subsection (2), in working out the *GST inclusive market value of the goods or services in question, disregard anything that would prevent or restrict conversion of the goods or services to money.
4 Paragraphs 30‑125(4)(a) and (b)
After “gifts”, insert “, or deductible contributions,”.
5 After subsection 30‑125(4)
(4A) For the purposes of subsection (4), if a contribution described in item 7 or 8 of the table in section 30‑15 is made in relation to a *fund‑raising event:
(b) the contribution is taken to have been made for the same purpose for which funds were raised by the fund‑raising event.
6 Subsection 30‑212(1)
After “gift”, insert “or contribution”.
7 At the end of section 30‑228 (after the note)
(2) If a *deductible gift recipient issues a receipt for a contribution described in item 7 of the table in section 30‑15, the deductible gift recipient must ensure that the receipt states:
(b) the *ABN (if any) of the deductible gift recipient; and
(c) the fact that the receipt is for a contribution made in return for a right to attend, or participate in, a specified *fund‑raising event; and
(d) if the contribution is money—the amount of the contribution; and
(e) the amount of the *GST inclusive market value, on the day the contribution was made, of the right to attend, or participate in, the fund‑raising event.
(3) For the purposes of paragraph (2)(e), in working out the *GST inclusive market value of the right in question, disregard anything that would prevent or restrict conversion of the right to money.
(4) If a *deductible gift recipient issues a receipt for a contribution described in item 8 of the table in section 30‑15, the deductible gift recipient must ensure that the receipt states:
(i) was a specified *fund‑raising event; or
(ii) was held at a specified fund‑raising event; and
(e) if the contribution is money—the amount of the contribution; and
(f) the *GST inclusive market value, on the day the contribution was made, of the goods or services.
(5) For the purposes of paragraph (4)(f), in working out the *GST inclusive market value of the goods or services in question, disregard anything that would prevent or restrict conversion of the goods or services to money.
Note: The heading to section 30‑228 is altered by adding at the end “or contribution”.
8 Subsection 30‑315(2) (after table item 51)
Fund‑raising events—contributions
items 7 and 8 of the table in section 30‑15
9 Subsection 995‑1(1) (paragraph (b) of the definition of apportionable deductions)
Omit “item 1 or 2”, substitute “item 1, 2, 7 or 8”.
fund‑raising event has the meaning given by section 40‑165 of the A New Tax System (Goods and Services Tax) Act 1999, as modified by the omission of subparagraph 40‑165(1)(b)(i) of that Act.
Omit “item 1, 2 or 3”, substitute “item 1, 2, 3, 7 or 8”.
Schedule 8—Distributions to certain entities
Part 1—Division 7A amendments
Omit “, 109UA and 109UB”, substitute “and 109UA”.
Subdivision EA—Unpaid present entitlements
(1) Section 109XB applies if:
(a) a trustee makes a payment to a shareholder or an associate of a shareholder of a private company (except a shareholder or associate that is a company) (the actual transaction); and
(b) the payment is a discharge of or a reduction in a present entitlement of the shareholder or associate that is wholly or partly attributable to an amount that is an unrealised gain; and
(c) the company is presently entitled to an amount from the net income of the trust estate at the time the actual transaction takes place, and the whole of that amount has not been paid to the company before the earlier of the due date for lodgment and the date of lodgment of the trustee’s return of income for the trust for the year of income of the trust in which the actual transaction takes place.
(2) Section 109XB applies if:
(a) a trustee makes a loan to a shareholder or an associate of a shareholder of a private company (except a shareholder or associate that is a company) (the actual transaction); and
(b) the company is presently entitled to an amount from the net income of the trust estate at the time the actual transaction takes place, and the whole of that amount has not been paid to the company before the earlier of the due date for lodgment and the date of lodgment of the trustee’s return of income for the trust for the year of income of the trust in which the actual transaction takes place.
(3) Section 109XB applies if:
(a) all or part of a debt owed to a trustee by a shareholder or an associate of a shareholder of a private company is forgiven (except where the shareholder or associate is a company) (the actual transaction); and
(4) The amount involved in the actual transaction is the lesser of:
(a) the amount actually involved in the actual transaction; and
(a) the amounts that, because of previous applications of section 109UB (as in force before the commencement of this section) have been taken to be loans; and
(b) the amounts that, because of previous applications of this Subdivision, have been included in an entity’s assessable income;
(a) if the actual transaction is a payment—the amount of the present entitlement referred to in paragraph (1)(c) that remained unpaid on the earlier of the dates mentioned in that paragraph; and
(b) if the actual transaction is a loan—the amount of the present entitlement referred to in paragraph (2)(b) that remained unpaid on the earlier of the dates mentioned in that paragraph; and
(c) if the actual transaction is the forgiveness of a debt—the amount of the present entitlement referred to in paragraph (3)(b) that remained unpaid on the earlier of the dates mentioned in that paragraph.
(5) For the purposes of subsection (4), where the actual transaction was a payment and that payment was only partly attributable to an amount that is an unrealised gain, the amount of the actual transaction is taken to be the amount of the payment that was attributable to the amount that is the unrealised gain.
(6) The creation of a present entitlement to the capital or income of a trust estate is not, of itself, a payment for the purposes of this Subdivision.
(a) a year of income before the year in which the actual payment was made; or
(b) the year of income in which the actual payment was made; or
(c) the year of income following the year in which the actual payment was made.
(1) An amount is included, as if it were a dividend, in the assessable income of the shareholder or associate referred to in subsection 109XA(1), (2) or (3) if:
(a) had the actual transaction been done by a private company (the notional company); and
an amount (the Division 7A amount) would have been included in the shareholder’s or associate’s assessable income because of a provision of this Division outside this Subdivision.
(2) Subject to section 109Y, the amount that is included under subsection (1) is the Division 7A amount.
Modifications for this Subdivision only
(1) The modifications in this section have effect for the purposes of the operation of this Subdivision.
(2) This Division (but not this Subdivision) applies to an actual transaction done by a trustee of a trust estate with these modifications:
(a) a reference (except in section 109Y) to an amount paid to a private company has effect as a reference to an amount paid to the trustee; and
(b) a reference to a year of income of a private company has effect as a reference to the corresponding year of income of the trust estate; and
(c) a reference to the ordinary course of a private company’s business has effect as a reference to the ordinary course of the trust estate’s business.
(3) A loan referred to in this Subdivision that is made during a year of income of a trust estate is taken to have been fully repaid at the end of the year for the purposes of paragraph 109E(3)(a) if it is fully repaid by the earlier of the due date for lodgment and the date of lodgment of the trustee’s return of income for the trust for that year of income of the trust.
(4) Section 109J does not apply to a payment to the extent that it is a discharge of or a reduction in a present entitlement.
(5) A loan referred to in this Subdivision is taken to have been made under a written agreement for the purposes of paragraph 109N(1)(a) if a written agreement is made in relation to the loan before the earlier of the due date for lodgment and the date of lodgment of the trustee’s return of income for the trust for the year of income of the trust in which the loan was made.
(6) For the purposes of applying section 109R to an actual transaction:
(a) a reference in that section to obtaining a loan from a private company has effect as a reference to obtaining a loan from the trustee; and
(b) a reference in that section to property transferred to a private company has effect as a reference to property transferred to the trustee; and
(c) a reference in that section to an amount paid by a private company for a transfer of property has effect as a reference to an amount paid by the trustee for a transfer of property.
(7) Section 109Y applies to the Division 7A amount in this way:
(a) assume that the private company referred to in subsection 109XA(1), (2) or (3) had been taken to have paid a dividend to the shareholder or associate referred to in that subsection equal to the Division 7A amount; and
(b) assume that the dividend was taken to have been paid at the end of the year of income of the company in which the actual transaction took place; and
(c) a reference in that section to a private company’s distributable surplus has effect as a reference to the distributable surplus of the private company referred to in paragraph (a).
(8) Subsection 109D(1A), sections 109K, 109NA and 109NB and paragraphs 109R(3)(a), (b) and (ba) do not apply to an actual transaction.
(i) the company is presently entitled to an amount from the net income of the trust estate at the time the actual transaction takes place, and the whole of that amount has not been paid to the company before the earlier of the due date for lodgment and the date of lodgment of the trustee’s return of income for the trust for the year of income of the trust in which the actual transaction takes place; or
(ii) the company becomes presently entitled to an amount from the net income of the trust estate after the actual transaction takes place, but before the earlier of the due date for lodgment and the date of lodgment of the trustee’s return of income for the trust for the year of income of the trust in which the actual transaction takes place, and the whole of the amount has not been paid to the company before the earlier of those dates.
(a) in a case mentioned in subparagraph (1)(c)(i), (2)(b)(i) or (3)(b)(i)—the amount of the present entitlement that remained unpaid on the earlier of the dates mentioned in that subparagraph; and
(b) in a case mentioned in subparagraph (1)(c)(ii), (2)(b)(ii) or (3)(b)(ii)—the amount of the present entitlement that remained unpaid on the earlier of the dates mentioned in that subparagraph.
Schedule 9—Deductions for dividends on‑paid to non‑resident owners
After “this Act”, insert “as in force immediately before 1 July 2002”.
Unfranked amount of flow‑on dividend unfrankable
(5) Part 3‑6 of the Income Tax Assessment Act 1997 (the imputation system) applies to the unfranked amount of the flow‑on dividend as if it were an unfrankable distribution within the meaning of section 202‑45 of that Act if a deduction is allowed to the resident company in relation to the flow‑on dividend.
4 Subsection 46FA(11) (definition of fully‑franked dividend)
fully‑franked dividend means a dividend whose franking percentage (within the meaning of section 203‑35 of the Income Tax Assessment Act 1997) is 100%.
After “160AFE”, insert “as in force immediately before 1 July 2002”.
unfranked amount of a dividend (including an unfrankable distribution within the meaning of section 202‑45 of the Income Tax Assessment Act 1997) means the amount of the dividend less the franked part.
Schedule 10—Endorsement of charities etc.
(ga) any statement required to be entered in the *Australian Business Register in relation to the entity under section 426‑65 in Schedule 1 to the Taxation Administration Act 1953;
4 After subsection 29‑40(2)
(2A) Subsection (2) does not apply in relation to a charitable institution or a trustee of a charitable fund unless the institution or trustee is an *endorsed charitable institution or an *endorsed trustee of a charitable fund.
Example: Subsection (2) does not apply in relation to an entity that is both a charitable institution and a gift‑deductible entity unless the entity is an endorsed charitable institution.
5 Subsection 29‑50(5)
Omit “Paragraph (1)(a)”, substitute “Subject to subsection (6), paragraph (1)(a)”.
6 At the end of section 29‑50
(6) Subsection (5) does not apply in relation to a charitable institution or a trustee of a charitable fund unless the institution or trustee is an *endorsed charitable institution or an *endorsed trustee of a charitable fund.
Example: Subsection (5) does not apply in relation to an entity that is both a charitable institution and a gift‑deductible entity unless the entity is an endorsed charitable institution.
7 At the end of section 38‑250
(3) Subsections (1) and (2) do not apply in relation to a charitable institution or a trustee of a charitable fund unless the institution or trustee is an *endorsed charitable institution or an *endorsed trustee of a charitable fund.
Example: Subsections (1) and (2) do not apply in relation to an entity that is both a charitable institution and a gift‑deductible entity unless the entity is an endorsed charitable institution.
8 At the end of section 38‑255
(2) Subsection (1) does not apply in relation to a charitable institution or a trustee of a charitable fund unless the institution or trustee is an *endorsed charitable institution or an *endorsed trustee of a charitable fund.
Example: Subsection (1) does not apply in relation to an entity that is both a charitable institution and a gift‑deductible entity unless the entity is an endorsed charitable institution.
9 At the end of section 38‑270
10 At the end of section 40‑160
11 After subsection 48‑15(1)
Example: Subparagraph (1)(e)(iii) does not apply in relation to an entity that is both a charitable institution and a gift‑deductible entity unless the entity is an endorsed charitable institution.
12 At the end of section 63‑5
(3) Paragraph (2)(a) does not apply in relation to a charitable institution or a trustee of a charitable fund unless the institution or trustee is an *endorsed charitable institution or an *endorsed trustee of a charitable fund.
Example: Paragraph (2)(a) does not apply in relation to an entity that is both a charitable institution and a gift‑deductible entity unless the entity is an endorsed charitable institution.
13 At the end of section 111‑18
14 At the end of section 129‑45
Division 176—Endorsement of charitable institutions etc.
176‑1 Endorsement by Commissioner as charitable institution
176‑5 Endorsement by Commissioner as trustee of a charitable fund
endorsed charitable institution means a charitable institution that is endorsed under subsection 176‑1(1).
17 Section 195‑1
endorsed trustee of a charitable fund means a trustee of a charitable fund who is endorsed under subsection 176‑5(1).
After “public benevolent institution”, insert “endorsed under subsection 123C(1) or (5)”.
(5) A benefit provided in respect of the employment of an employee is an exempt benefit if:
Note: The heading to section 57A is altered by inserting “, health promotion charities” after “public benevolent institutions”.
Omit “is not a charitable institution described in subsection 57A(5)”, substitute “is not a health promotion charity”.
(baa) a charitable institution that is endorsed under subsection 123E(1);
(1A) Despite subsection (1), if the employer is a charitable institution at any time during the year of tax, the employer is not a rebatable employer for the year of tax unless the employer is endorsed under subsection 123E(1) at that time.
Part XA—Endorsement of charitable institutions etc.
(3) The Commissioner must endorse an entity for the operation of a public benevolent institution if:
(4) An entity is entitled to be endorsed for the operation of a public benevolent institution if:
(5) If an entity is endorsed under subsection (3) for the operation of a public benevolent institution, the public benevolent institution is taken to be endorsed under this subsection as a public benevolent institution.
(1) The Commissioner must endorse an entity as a health promotion charity if:
(a) the entity is entitled to be endorsed as a health promotion charity (see subsection (2)); and
(2) An entity is entitled to be endorsed as a health promotion charity if the entity:
(a) is a health promotion charity; and
(1) The Commissioner must endorse an entity as a charitable institution covered by paragraph 65J(1)(baa) if:
(a) the entity is entitled to be endorsed as a charitable institution covered by paragraph 65J(1)(baa) (see subsections (2) and (3)); and
(2) An entity is entitled to be endorsed as a charitable institution covered by paragraph 65J(1)(baa) if the entity:
Special rules apply for working out the employee’s reportable fringe benefits amount in respect of the employee’s employment if the benefits provided in respect of the employment include exempt benefits under section 57A or 58 (about employment with public benevolent institutions, certain hospitals, health promotion charities and bodies providing care for sick, elderly or disadvantaged persons) (see section 135Q).
entity has the meaning given by section 960‑100 of the Income Tax Assessment Act 1997.
28 Section 30‑120
Omit “If an entity applies for it”, substitute “If an entity applies for endorsement in accordance with Division 426 in Schedule 1 to the Taxation Administration Act 1953”.
29 At the end of section 30‑120
30 Subsection 30‑125(7) (note 2)
Note 2: Section 426‑55 in Schedule 1 to the Taxation Administration Act 1953 deals with revocation of endorsement.
31 At the end of section 30‑125
[The next section is section 30‑180.]
32 Sections 30‑130 to 30‑175
33 Subsections 30‑180(3) and (4)
34 Section 30‑228 (note)
Omit “section 30‑170”, substitute “section 426‑55 in Schedule 1 to the Taxation Administration Act 1953”.
35 Subsection 50‑52(2)
36 Subsection 50‑52(3) (note)
Omit “(or is prescribed for the purposes of paragraph 50‑50(c) or (d))”.
37 Paragraph 50‑105(b)
(b) has applied for that endorsement in accordance with Division 426 in Schedule 1 to the Taxation Administration Act 1953.
38 At the end of section 50‑105
39 Sections 50‑115 to 50‑160
40 Section 425‑30 in Schedule 1 (link note)
41 After Part 5‑30 in Schedule 1
Part 5‑35—Registration and similar processes for various taxes
Division 426—Process of endorsing charities and other entities
426‑A Application of Subdivision 426‑B to various kinds of endorsement
426‑B Process of endorsement etc.
426‑C Entries on Australian Business Register
426‑1 What this Division is about
This Division sets out procedural rules relating to endorsement of charities and other entities (the conditions for entitlement to endorsement are set out in the A New Tax System (Goods and Services Tax) Act 1999, the Fringe Benefits Tax Assessment Act 1986, and the Income Tax Assessment Act 1997). These rules cover matters such as application for and revocation of endorsement, and entry of the details of endorsement on the Australian Business Register.
Subdivision 426‑A—Application of Subdivision 426‑B to various kinds of endorsement
426‑5 Application of Subdivision 426‑B to various kinds of endorsement
426‑10 How Subdivision 426‑B applies to government entities in relation to endorsement under section 30‑120 of the Income Tax Assessment Act 1997
Subdivision 426‑B applies separately in relation to each of these kinds of endorsement:
(a) endorsement of an entity as a charitable institution under subsection 176‑1(1) of the A New Tax System (Goods and Services Tax) Act 1999;
(b) endorsement of an entity as a trustee of a charitable fund under subsection 176‑5(1) of the A New Tax System (Goods and Services Tax) Act 1999;
(c) endorsement of an entity as a public benevolent institution under subsection 123C(1) of the Fringe Benefits Tax Assessment Act 1986;
(d) endorsement of an entity for the operation of a public benevolent institution under subsection 123C(3) of the Fringe Benefits Tax Assessment Act 1986;
(e) endorsement of an entity as a health promotion charity under subsection 123D(1) of the Fringe Benefits Tax Assessment Act 1986;
(f) endorsement of an entity under subsection 123E(1) of the Fringe Benefits Tax Assessment Act 1986 as a charitable institution covered by paragraph 65J(1)(baa) of that Act;
(g) endorsement of an entity as a *deductible gift recipient, or as a deductible gift recipient for the operation of a fund, authority or institution, under section 30‑120 of the Income Tax Assessment Act 1997;
(h) endorsement of an entity as exempt from income tax under section 50‑105 of the Income Tax Assessment Act 1997.
(1) This section applies in relation to endorsement under section 30‑120 of the Income Tax Assessment Act 1997.
(2) Subdivision 426‑B applies in relation to a *government entity in the same way as it applies in relation to an entity.
(3) If, apart from this subsection, section 426‑40 or 426‑45 (as applied by this section) would impose an obligation on a *government entity:
(b) subsection 426‑50(2) as it applies because of this section.
Subdivision 426‑B—Process of endorsement etc.
426‑15 Applying for endorsement
426‑20 Dealing with an application for endorsement
426‑25 Notifying outcome of application for endorsement
426‑30 Date of effect of endorsement
426‑35 Review of refusal of endorsement
426‑40 Checking entitlement to endorsement
426‑45 Telling Commissioner of loss of entitlement to endorsement
426‑50 Partnerships and unincorporated bodies
426‑55 Revoking endorsement
426‑60 Review of revocation of endorsement
(1) An entity may apply to the Commissioner for endorsement.
(c) must be signed for the entity, or include the entity’s *electronic signature if the application is lodged electronically; and
(d) must be lodged at, or posted to, an office or facility designated by the Commissioner as a receiving centre for applications of that kind.
(3) Section 426‑5 does not prevent the Commissioner from approving a single form to be used by an entity to make applications for 2 or more kinds of endorsement.
(1) The Commissioner may require an applicant to give the Commissioner specified information, or a specified document, that the Commissioner needs in order to decide whether the applicant is entitled to endorsement.
(2) After the time worked out under subsection (3), the applicant may give the Commissioner written notice that the applicant wishes to treat the application as having been refused, if the Commissioner has not given the applicant before that time written notice that the Commissioner endorses or refuses to endorse the applicant.
Note: Section 426‑25 requires the Commissioner to give the applicant written notice if the Commissioner endorses or refuses to endorse the applicant.
(3) The time is the end of the 60th day after the application was made. However, if before that time the Commissioner requires the applicant under subsection (1) to give information or a document, the time is the later of the following (or either of them if they are the same):
(a) the end of the 28th day after the last day on which the applicant gives the Commissioner information or a document he or she has required;
(b) the end of the 60th day after the application was made.
(4) If the applicant gives notice under subsection (2), section 426‑35 operates as if the Commissioner had refused the application on the day on which the notice is given.
Note: Section 426‑35 lets the applicant object against refusal of an application in the manner set out in Part IVC of this Act. That Part provides for review of the refusal objected against.
(5) The notice given by the applicant:
(b) must be signed for the applicant, or include the applicant’s *electronic signature if the application is *lodged electronically.
(1) The Commissioner must give the applicant written notice if:
(a) the Commissioner endorses the applicant; or
(b) the Commissioner refuses to endorse the applicant.
(2) The Commissioner may give the notice by way of electronic transmission. This does not limit the ways in which the Commissioner may give the notice.
(1) The endorsement has effect from a date specified by the Commissioner.
(2) The date specified may be any date (including a date before the application for endorsement was made and a date before the applicant had an *ABN).
If the applicant is dissatisfied with the Commissioner’s refusal to endorse the applicant in accordance with the application, the applicant may object against the refusal in the manner set out in Part IVC of this Act.
(1) The Commissioner may require an entity that is endorsed to give the Commissioner information or a document that is relevant to the entity’s entitlement to endorsement. The entity must comply with the requirement.
(a) subsections 176‑1(2) and 176‑5(2) of the A New Tax System (Goods and Services Tax) Act 1999; and
(c) sections 30‑120 and 50‑105 of the Income Tax Assessment Act 1997.
Note 2: Failure to comply with this subsection is an offence against section 8C. Also, the Commissioner may revoke the endorsement of the entity under section 426‑55 if it fails to comply with this subsection.
Note 3: Section 426‑50 modifies the way this subsection operates in relation to partnerships and unincorporated bodies.
(2) The requirement:
(3) The Commissioner may give the notice by way of electronic transmission. This does not limit the ways in which the Commissioner may give the notice.
(4) If the requirement is for the entity to give information in writing, the document setting out the information:
(c) must be signed for the entity, or include the entity’s *electronic signature if the document is lodged electronically.
(1) Before, or as soon as practicable after, an entity that is endorsed ceases to be entitled to be endorsed, the entity must give the Commissioner written notice of the cessation.
Note 2: Section 426‑50 modifies the way this subsection operates in relation to partnerships and unincorporated bodies.
(b) must be signed for the entity, or include the entity’s *electronic signature if the document is lodged electronically.
(3) Subsection (1) does not apply to an entitlement to endorsement ceasing because the entity ceases to have an *ABN.
(1) If, apart from this subsection, section 426‑40 or 426‑45 would impose an obligation on a partnership, the obligation is imposed on each partner, but may be discharged by any of the partners.
(2) If, apart from this subsection, section 426‑40 or 426‑45 would impose an obligation on an unincorporated association or body, the obligation is imposed on each member of the committee of management of the association or body, but may be discharged by any of the members of the committee.
(3) In a prosecution of a person for an offence against section 8C of this Act because of subsection (1) or (2), it is a defence if the person proves that the person:
(b) the Commissioner has required the entity under section 426‑40 to provide information or a document that is relevant to its entitlement to endorsement and the entity has not provided the required information or document within the time specified in the requirement; or
(c) in the case of an entity endorsed under section 30‑120 of the Income Tax Assessment Act 1997—the entity has contravened Subdivision 30‑CA of that Act (which requires the entity to ensure that certain things are stated in any receipts it issues for certain gifts).
(2) The revocation has effect from a day specified by the Commissioner (which may be a day before the Commissioner decided to revoke the endorsement).
(3) However, if the Commissioner revokes the endorsement because the entity is not entitled to it, the Commissioner must not specify a day before the day on which the entity first ceased to be entitled.
Subdivision 426‑C—Entries on Australian Business Register
426‑65 Entries on Australian Business Register
(1) If an entity that is endorsed in any of these ways:
(a) as a charitable institution under subsection 176‑1(1) of the A New Tax System (Goods and Services Tax) Act 1999;
(b) as a trustee of a charitable fund under subsection 176‑5(1) of the A New Tax System (Goods and Services Tax) Act 1999;
(c) as a public benevolent institution under subsection 123C(1) of the Fringe Benefits Tax Assessment Act 1986;
(d) for the operation of a public benevolent institution under subsection 123C(3) of the Fringe Benefits Tax Assessment Act 1986;
(e) as a health promotion charity under subsection 123D(1) of the Fringe Benefits Tax Assessment Act 1986;
(f) as a charitable institution covered by paragraph 65J(1)(baa) of the Fringe Benefits Tax Assessment Act 1986 under subsection 123E(1) of that Act;
(g) as exempt from income tax under section 50‑105 of the Income Tax Assessment Act 1997;
Note 2: For entities and government entities that are endorsed under section 30‑120 of the Income Tax Assessment Act 1997, see section 30‑229 of that Act.
(2) The *Australian Business Registrar may remove the statement from the *Australian Business Register after the end of the period.
(3) The *Australian Business Registrar must take reasonable steps to ensure that a statement appearing in the *Australian Business Register under this section is true. For this purpose, the Registrar may:
(4) Making, changing or removing an entry in the *Australian Business Register as required or permitted by this section does not contravene section 16 of the Income Tax Assessment Act 1936 (Officers to observe secrecy).
The amendments of the A New Tax System (Goods and Services Tax) Act 1999 made by this Schedule apply in relation to net amounts for tax periods starting on or after 1 July 2005.
The amendments of the Fringe Benefits Tax Assessment Act 1986 made by this Schedule apply in relation to benefits provided on or after 1 July 2005.
44 Transitional—GST and FBT endorsements
(a) immediately before 1 July 2005, the entity was endorsed under section 30‑120 or section 50‑105 of the Income Tax Assessment Act 1997; and
(2) The entity is taken to have made an application to the Commissioner under section 426‑15 in Schedule 1 to the Taxation Administration Act 1953 for whichever of these kinds of endorsement is most appropriate for the entity:
(a) endorsement as a charitable institution under subsection 176‑1(1) of the A New Tax System (Goods and Services Tax) Act 1999;
(b) endorsement as a trustee of a charitable fund under subsection 176‑5(1) of the A New Tax System (Goods and Services Tax) Act 1999.
(3) The entity is taken to have made an application to the Commissioner under section 426‑15 in Schedule 1 to the Taxation Administration Act 1953 for whichever of these kinds of endorsement is most appropriate for the entity:
45 Transitional—acts or things done before commencement under repealed endorsement provisions
(a) sections 30‑130 to 30‑175 of the Income Tax Assessment Act 1997;
(b) sections 50‑115 to 50‑160 of that Act.
(b) the act or thing was done under, or for the purposes of, a repealed provision.
Schedule 11—Specific gift recipients
3 Subsection 30‑50(2) (table item 5.2.16)
Omit “16 August 2003”, substitute “16 August 2005”.
5 Subsection 30‑315(2) (after table item 40)
6 Subsection 30‑315(2) (after table item 45)
Senate on 8 March 2004]