TAXATION LAWS AMENDMENT ACT (No. 4) 1985 No. 173 of 1985
TAXATION LAWS AMENDMENT ACT (No. 4) 1985 No. 173 of 1985 - TABLE OF PROVISIONS
TABLE OF PROVISIONS PART I - PRELIMINARYSection 1. Short title 2. Commencement PART II - AMENDMENTS OF THE INCOME TAX ASSESSMENT ACT 1936 3. Principal Act 4. Income of certain persons serving with an armed force under the control of the United Nations 5. Exemption of certain pensions 6. Insertion of new section - 26AAAC. Meals provided to clients, &c., in in-house dining facilities 7. Interpretation 8. Assessable income to include certain superannuation and kindred payments 9. Insertion of new sections - 51AE. Deductions not allowable for entertainment expenses 51AF. Car expenses incurred by employee 51AG. Deductions for travel expenses where person accompanied by eligible relative 10. Insertion of new section - 74B. Certain election expenses not deductible 11. Deduction of expenditure on conserving or conveying water 12. Deduction of expenditure on prevention of land degradation 13. Rebates for residents of isolated areas 14. Insertion of new Subdivision - Subdivision F - Substantiation of Certain Expenses 82KT. Interpretation 82KU. Documentary evidence 82KV. Car expenses 82KW. Car expenses where income-producing use exceeds 5,000 kilometres 82KX. Car expenses where income-producing use does not exceed 5,000 kilometres 82KY. Elections 82KZ. Other expenses 82KZA. Retention, and production, of documents 82KZB. Aggregate claims not exceeding a certain amount 15. Modified application of Act in relation to certain unit trusts 16. Insertion of new Division - Division 6C - Income of Certain Public Trading Trusts 102M. Interpretation 102N. Trading trusts 102P. Public unit trusts 102Q. Resident unit trusts 102R. Public trading trusts 102S. Taxation of net income of public trading trust 102T. Modified application of Act in relation to certain unit trusts 17. Rebate in respect of certain pensions 18. Rebate in respect of amounts assessable under section 26AH 19. Amendment of assessments 20. Interpretation 21. Prescribed persons 22. Release of liability of members of the Defence Force on death 23. Application of amendments 24. Amendment of assessments PART III - AMENDMENTS OF THE INCOME TAX (INDIVIDUALS) ACT 1985 25. Principal Act 26. Title 27. Interpretation 28. Imposition of income tax PART IV - AMENDMENTS OF THE INCOME TAX (INTERNATIONAL AGREEMENTS) ACT 1953 29. Principal Act 30. Interpretation 31. Ascertainment of Australian tax 32. Withholding tax PART V - AMENDMENTS OF THE INCOME TAX (RATES) ACT 1982 33. Principal Act 34. Title 35. Interpretation TAXATION LAWS AMENDMENT ACT (No. 4) 1985 No. 173 of 1985 - LONG TITLE
An Act to amend the law relating to income tax TAXATION LAWS AMENDMENT ACT (No. 4) 1985 No. 173 of 1985 - PART I PART I - PRELIMINARY
TAXATION LAWS AMENDMENT ACT (No. 4) 1985 No. 173 of 1985 - SECT 1 Short title
(Assented to 16 December
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1985) 1. This Act may be cited as the Taxation Laws Amendment Act (No. 4) 1985. (Minister's second reading speech made in - House of Representatives on 15 November 1985; Senate on 3 December 1985) TAXATION LAWS AMENDMENT ACT (No. 4) 1985 No. 173 of 1985 - SECT 2 Commencement
2. (1) Subject to this section, this Act shall come into operation on the day on which it receives the Royal Assent. (2) Sub-section 5 (1) shall be deemed to have come into operation on 6 June 1985.
(3) Sub-section 5 (2) shall be deemed to have come into operation on 1 November 1985.
(4) Section 4, sub-section 5 (3) and sections 13, 17, 20, 21 and 22 shall come into operation or shall be deemed to have come into operation, as the case requires, on the day on which the Veterans' Entitlements Act 1985 comes or came into operation.
TAXATION LAWS AMENDMENT ACT (No. 4) 1985 No. 173 of 1985 - PART II PART II - AMENDMENTS OF THE INCOME TAX ASSESSMENT ACT 1936
TAXATION LAWS AMENDMENT ACT (No. 4) 1985 No. 173 of 1985 - SECT 3 Principal Act
3. The Income Tax Assessment Act 1936*1* is in this Part referred to as the Principal Act. *1*No. 27, 1936, as amended. For previous amendments, see No. 88, 1936; No. 5, 1937; No. 46, 1938; No. 30, 1939; Nos. 17 and 65, 1940; Nos. 58 and 69, 1941; Nos. 22, and 50, 1942; No. 10, 1943; Nos. 3 and 28, 1944; Nos. 4 and 37, 1945; No. 6, 1946; Nos. 11 and 63, 1947; No. 44, 1948; No. 66, 1949; No. 48, 1950; No. 44, 1951; Nos. 4, 28 and 90, 1952; Nos. 1, 28, 45 and 81, 1953; No. 43, 1954; Nos. 18 and 62, 1955; Nos. 25, 30 and 101, 1956; Nos. 39 and 65, 1957; No. 55, 1958; Nos. 12, 70 and 85, 1959; Nos. 17, 18, 58 and 108, 1960; Nos. 17, 27 and 94, 1961; Nos. 39 and 98, 1962; Nos. 34 and 69, 1963; Nos. 46, 68, 110 and 115, 1964; Nos. 33, 103 and 143, 1965; Nos. 50 and 83, 1966; Nos. 19, 38, 76 and 85, 1967; Nos. 4, 60, 70, 87 and 148, 1968; Nos. 18, 93 and 101, 1969; No. 87, 1970; Nos. 6, 54 and 93, 1971; Nos. 5, 46, 47, 65 and 85, 1972; Nos. 51, 52, 53, 164 and 165, 1973; No. 216, 1973 (as amended by No. 20, 1974); Nos. 26 and 126, 1974; Nos. 80 and 117, 1975; Nos. 50, 53, 56, 98, 143, 165 and 205, 1976; Nos. 57, 126 and 127, 1977; Nos. 36, 57, 87, 90, 123, 171 and 172, 1978; Nos. 12, 19, 27, 43, 62, 146, 147 and 149, 1979; Nos. 19, 24, 57, 58, 124, 133, 134 and 159, 1980; Nos. 61, 92, 108, 109, 110, 111, 154 and 175, 1981; Nos. 29, 38, 39, 76, 80, 106 and 123, 1982; Nos. 14, 25, 39, 49, 51, 54 and 103, 1983; Nos. 14, 42, 47, 63, 76, 115, 124, 165 and 174, 1984; No. 123, 1984 (as amended by No. 65, 1985); and Nos. 47, 49, 104 and 123, 1985. TAXATION LAWS AMENDMENT ACT (No. 4) 1985 No. 173 of 1985 - SECT 4 Income of certain persons serving with an armed force under the control of the United Nations
4. Section 23AB of the Principal Act is amended by omitting from paragraphs (5) (c) and (10) (c) "serving on special service within the meaning of the Repatriation (Special Overseas Service) Act 1962" and substituting "rendering continuous full-time service outside Australia while the taxpayer was allotted for duty in an operational area described in item 4, 5, 6, 7 or 8 of Column 1 of Schedule 2 to the Veterans' Entitlements Act 1985". TAXATION LAWS AMENDMENT ACT (No. 4) 1985 No. 173 of 1985 - SECT 5 Exemption of certain pensions
5. (1) Section 23AD of the Principal Act is amended - (a) by inserting ", as in force by virtue of sub-section 66 (2) of the Repatriation Legislation Amendment Act 1985," after "Interim Forces Benefits Act 1947-1974)" in sub-paragraph (b) (iii) of the definition of "excepted payment" in sub-section (1); (b) by inserting ", as in force by virtue of sub-section 66 (2) of the Repatriation Legislation Amendment Act 1985," after "Interim Forces Benefits Act 1947-1974)" in paragraph (d) of the definition of "excepted pension" in sub-section (1); and (c) by inserting in paragraph (3) (a) "(including pensions and allowances payable by virtue of sub-section 66 (2) of the Repatriation Legislation Amendment Act 1985)" after "Seamen's War Pensions and Allowances Act 1940-1973". (2) Section 23AD of the Principal Act is amended - (a) by inserting before the definition of "commencing day" in subsection (1) the following definition: "'carer's pension' means - (a) a pension payable under Division 6 of Part III of the Social Security Act 1947 to or in respect of a person, where the relative for whom the person is providing constant care and attention in accordance with Division 6 of Part III of that Act, being a man, has attained the age of 65 years or, being a woman, has attained the age of 60 years; or (b) a pension payable under section 85AA of the Repatriation Act 1920 (including that section as applying by virtue of Division 5A, 6, 7, 8 or 9 of Part III of that Act or by virtue of the
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Repatriation (Special Overseas Service) Act 1962) to or in respect of a person, where the relative for whom the person is providing constant care and attention in accordance with section 85AA of the Repatriation Act 1920, being a man, has attained the age of 65 years or, being a woman, has attained the age of 60 years;"; (b) by inserting after the definition of "commencing day" in sub-section (1) the following definition: "'dependent child', in relation to a person, has the same meaning as in section 6 of the Social Security Act 1947;"; (c) by inserting "or a carer's pension" after "wife's pension" in subparagraph (a) (i) of the definition of "excepted payment" in subsection (1); (d) by omitting "the spouse" from sub-paragraph (b) (ii) of the definition of "excepted payment" in sub-section (1) and substituting "a relative"; (e) by omitting "Director-General of Social Security" from sub-paragraph (c) (i) of the definition of "excepted payment" in sub-section (1) and substituting "Secretary to the Department of Social Security"; (f) by omitting ", lodging or board and lodging" from paragraph (d) of the definition of "excepted payment" in sub-section (1); (g) by omitting "the custody, care and control of a" from paragraph (e) of the definition of "excepted payment" in sub-section (1) and substituting "a dependent"; (h) by omitting "the custody, care and control of a" from paragraph (f) of the definition of "excepted payment" in sub-section (1) and substituting "a dependent"; (j) by omitting "the spouse" from paragraph (c) of the definition of "excepted pension" in sub-section (1) and substituting "a relative"; (k) by omitting paragraph (d) of the definition of "prescribed person" in sub-section (1) and substituting the following paragraph: "(d) a person to or in respect of whom a carer's pension is payable;"; (m) by omitting from sub-section (1) the definition of "spouse carer's pension" and substituting the following definition: "'rent' has the same meaning as in section 6 of the Social Security Act 1947;"; (n) by omitting from sub-section (2) "spouse"; and (o) by omitting from paragraph (4) (h) "Parliamentary Retiring Allowances Act 1948" and substituting "Parliamentary Contributory Superannuation Act 1948". (3) Section 23AD of the Principal Act is amended - (a) by omitting "section 85AA of the Repatriation Act 1920 (including that section as applying by virtue of Division 5A, 6, 7, 8 OR 9 of Part III of that Act or by virtue of the Repatriation (Special Overseas Service) Act 1962)" from paragraph (b) of the definition of "carer's pension" in sub-section (1) and substituting "section 41 of the Veterans' Entitlements Act 1985"; (b) by omitting "section 85AA of the Repatriation Act 1920" (last occurring) from paragraph (b) of the definition of "carer's pension" in sub-section (1) and substituting "section 41 of that Act"; (c) by omitting sub-paragraph (b) (ii) of the definition of "excepted payment" in sub-section (1) and substituting the following subparagraph: "(ii) Part III (other than section 57) of the Veterans' Entitlements Act 1985 to the extent to which that Part applies to or in respect of the person or a relative of the person otherwise than by virtue of section 39 of that Act; or"; (d) by omitting "sub-section 66 (2) of the Repatriation Legislation Amendment Act 1985" from sub-paragraph (b) (iii) of the definition of "excepted payment" in sub-section (1) and substituting "subsection 4 (6) of the Veterans' Entitlements (Transitional Provisions and Consequential Amentments) Act 1985"; (e) by omitting paragraph (e) of the definition of "excepted payment" in sub-section (1) and substituting the following paragraph: "(e) so much of a payment of a pension, allowance or benefit referred to in paragraph (a) or (b) made to or in respect of a person as, in the opinion of the Commissioner, represents an increase in the rate of that pension, allowance or benefit that is calculated by reference to another person or other persons; or"; (f) by omitting paragraph (c) of the definition of "excepted pension" in sub-section (1) and substituting the following paragraph: "(c) Part III of the Veterans' Entitlements Act 1985 to the extent to which that Part applies to or in respect of a person or a relative of a person by virtue of section 39 of that Act; or"; (g) by omitting "sub-section 66 (2) of the Repatriation Legislation Amendment Act 1985" from paragraph (d) of the definition of "excepted pension" in sub-section (1) and substituting "sub-section 4 (6) of the Veterans'
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Entitlements (Transitional Provisions and Consequential Amendments) Act 1985"; (h) by omitting paragraph (b) of the definition of "wife's pension" in sub-section (1) and substituting the following paragraph: "(b) a wife's service pension payable under Part III of the Veterans' Entitlements Act 1985 to the wife of a veteran (within the meaning of that Part), being a veteran who has attained the age of 65 years; or"; and (j) by omitting paragraph (3) (a) and substituting the following paragraph: "(a) payments (other than excepted payments) of pensions and attendant allowances under the Veterans' Entitlements Act 1985 and payments (other than excepted payments) of pensions and attendant allowances of a like nature under the Seamen's War Pensions and Allowances Act 1940 (including payments (other than excepted payments) payable by virtue of sub-section 4 (6) of the Veterans' Entitlements (Transitional Provisions and Consequential Amendments) Act 1985);". TAXATION LAWS AMENDMENT ACT (No. 4) 1985 No. 173 of 1985 - SECT 6
6. After section 26AAAB of the Principal Act the following section is inserted:
Meals provided to clients, &c., in in-house dining facilities "26AAAC. (1) Where - (a) the taxpayer incurs a loss or outgoing in a year of income in respect of the provision of entertainment, being a loss or outgoing in respect of the provision of a meal (not being a meal provided at a party, reception or other social function) on a working day to a person other than - (i) in any case - an employee of the taxpayer; or (ii) if the taxpayer is a company - an employee of the taxpayer or of a company that is related to the taxpayer, in an in-house dining facility of the taxpayer; (b) the loss or outgoing is deductible under section 51; and (c) but for sub-paragraph 51AE (5) (f) (i), the loss or outgoing would not be deductible under section 51, the assessable income of the taxpayer of the year of income shall include, in respect of the meal, $30. "(2) An expression used in this section and in section 51AE has the same meaning in this section as in that section.".