TAXATION LAWS AMENDMENT ACT (No. 3) 1992
No. 98, 1992
TAXATION LAWS AMENDMENT ACT (No. 3) 1992
No. 98, 1992 - TABLE OF PROVISIONS
TABLE OF PROVISIONS Section PART 1 - PRELIMINARY 1. Short title 2. Commencement PART 2 - AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936 Division 1 - Principal Act 3. Principal Act Division 2 - Amendments relating to horticulture 4. Interpretation 5. Application of amendments Division 3 - Amendment relating to expenditure on research and development activities 6. Expenditure on research and development activities 7. Application of amendment Division 4 - Amendments relating to pooled development funds 8. Interpretation 9. Insertion of new sections: 79EA. Loss of company's first year as a PDF where taxable income consists of pre-PDF income 79EB. Losses incurred while a PDF not allowable after company ceases to be a PDF 10. Transfer of loss within company group 11. Insertion of new Division: Division 10E - Shares in PDFs 124ZM. Treatment of dividends on shares in a PDF 124ZN. Exemption of income from sale of shares in a PDF 124ZO. Shares in a PDF are not trading stock 124ZP. Part IIIA does not apply to disposal of shares in a PDF 124ZQ. Effect of company becoming a PDF 124ZR. Effect of company ceasing to be a PDF 12. Liability to withholding tax 13. Interpretation 14. Receipt of franked dividends 15. Extra amount to be included in assessable income where franked dividend paid 16. Transfer of shareholder status for tax purposes - cum-dividend stock exchange sales and securities lending arrangements 17. Net capital gains and net capital losses 18. Return of capital on investment in trust 19. Transfer of net capital loss within company group 20. Application of amendments Division 5 - Amendments relating to debts 21. Interpretation 22. Bad debts 23. Bad debts etc. of company not allowable deductions unless there is substantial continuity of beneficial ownership of shares in company 24. Bad debts etc. of company not allowable deductions in certain circumstances 25. Bad debts etc. of a company may be allowable deductions where company carries on same business 26. Bad debts etc. of money-lenders not allowable deductions where attributable to listed country branches 27. Insertion of new sections: 63E. Debt/equity swaps 63F. Limit on deductions where debt write offs and debt/equity swaps occur 28. Loss resulting from bad debt etc. not to be taken into account in certain circumstances 29. Interpretation 30. Modified application of bad debt etc. provisions 31. Application of amendments Division 6 - Amendments relating to infrastructure borrowings 32. Division not to apply to certain interest 33. Liability to withholding tax 34. Insertion of new Division: Division 16L - Tax-exempt infrastructure borrowings Subdivision A - Interpretation 159GZZZU. General 159GZZZV. Kinds of infrastructure borrowing 159GZZZW. Direct infrastructure borrowing 159GZZZX. Indirect infrastructure borrowing
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159GZZZY. Refinancing infrastructure borrowing 159GZZZZ. Infrastructure borrowings - borrower requirements 159GZZZZA. Direct infrastructure borrowing - requirement relating to spending of borrowed money 159GZZZZB. Direct infrastructure borrowing - requirement relating to use of facilities on which borrowed money is to be spent 159GZZZZC. Infrastructure facilities 159GZZZZD. Related facilities Subdivision B - Tax effects of infrastructure borrowings 159GZZZZE. Infrastructure borrowings to be non-assessable and non-deductible 159GZZZZF. Tax exemption to be disregarded for certain purposes 35. Return of capital on investment in trust 36. Application of Division Division 7 - Amendments relating to depreciation of property installed on leased Crown land 37. Insertion of new section: 54AA. Property installed on leased Crown land - lessee deemed to be owner etc. 38. Application of amendments relating to depreciation of property installed on leased Crown land Division 8 - Amendments relating to deductions for capital expenditure on traveller accommodation 39. Interpretation 40. Qualifying expenditure 41. Deductions in respect of capital expenditure 42. Reduction of deductions 43. Deduction in respect of destruction of building 44. Qualifying expenditure 45. Keeping of records 46. Application of amendments relating to deductions for traveller accommodation Division 9 - Amendments relating to deductions for capital expenditure on industrial buildings 47. Interpretation 48. Insertion of new section: 124ZFA. When building used in eligible industrial manner 49. Deductions in respect of qualifying expenditure 50. Reduction of deductions 51. Deductions in respect of destruction of building 52. Keeping of records Division 10 - Amendments relating to deductions for capital expenditure on income-producing structural improvements 53. Heading to Division 10D of Part III 54. Interpretation 55. Qualifying expenditure 56. Insertion of new section: 124ZFB. Division has effect as if certain structural improvements were buildings 57. Application of amendments relating to structural improvements Division 11 - Amendments relating to development allowance 58. Officers to observe secrecy 59. Deductions not allowable for entertainment expenses 60. Special depreciation on trading ships 61. Heading to Subdivision B of Division 3 of Part III 62. Insertion of new section: 82AAAA. Object 63. Property to which Subdivision applies 64. Deduction for new plant installed after 26 February 1992 65. Lessor may transfer benefit of deduction to lessees 66. Subdivision not to apply to certain structural improvements 67. Subdivision not to apply to certain other property 68. Disposal etc. of property within 12 months after installation etc. 69. Disposal etc. of property after 12 months after installation etc. 70. Goods or services used to produce exempt income 71. Notional disposal of property under hire-purchase 72. Special provisions relating to partnerships 73. Disposals within company group 74. Property acquired etc. in substitution for other property
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75. Deduction under Subdivision to be in addition to certain other deductions 76. Repeal of section 82AP 77. Insertion of new section: 82APA. Leases etc. granted in an entity's capacity as an eligible entertainment/tourism operator 78. Interpretation 79. Minor consequential amendments 80. Transitional - old investment allowance provisions Division 12 - Amendment of assessments 81. Amendment of assessments PART 3 - AMENDMENT OF THE INCOME TAX RATES ACT 1986 82. Principal Act 83. Interpretation 84. Rates of tax payable by companies 85. Application of amendments PART 4 - AMENDMENT OF THE OCCUPATIONAL SUPERANNUATION STANDARDS ACT 1987 86. Principal Act 87. Notification of determinations 88. Amendment of interim determinations 89. Person may request copy of previous determination 90. Review of certain decisions 91. Insertion of new section: 18A. Transmission of information to the Commissioner of Taxation PART 5 - AMENDMENT OF THE TAXATION ADMINISTRATION ACT 1953 92. Principal Act 93. Annual report 94. Secrecy 95. Insertion of new section: 8AB. Application of Part to the Development Allowance Authority Act 1992 96. Interpretation 97. Court may order payment of amount in addition to penalty 98. Provision of Commonwealth taxation information to State taxation authorities 99. Certification by State taxation officer of copies of, and extracts from, documents 100. Appearance by Commissioner etc. 101. Certification by Commissioner of copies of, and extracts from, documents PART 6 - AMENDMENT OF THE TAXATION LAWS AMENDMENT ACT 1992 102. Principal Act 103. Transitional - section 58 of the amended Act 104. Application of amendments TAXATION LAWS AMENDMENT ACT (No. 3) 1992
No. 98, 1992 - LONG TITLE
An Act to amend the law relating to taxation TAXATION LAWS AMENDMENT ACT (No. 3) 1992
No. 98, 1992 - PART 1 PART 1 - PRELIMINARY
TAXATION LAWS AMENDMENT ACT (No. 3) 1992
No. 98, 1992 - SECT 1 Short title
(Assented to 30 June 1992) 1. This Act may be cited as the Taxation Laws Amendment Act (No. 3) 1992. (Mnister's second reading speech made in- House of Representatives on 26 February 1992 Senate on 1 June 1992) TAXATION LAWS AMENDMENT ACT (No. 3) 1992
No. 98, 1992 - SECT 2 Commencement
2.(1) Subject to subsection (2), this Act commences on the day on which it receives the Royal Assent. (2) Division 6 of Part 2 commences on the day after the day on which this Act receives the Royal Assent. TAXATION LAWS AMENDMENT ACT (No. 3) 1992
No. 98, 1992 - PART 2 PART 2 - AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936
TAXATION LAWS AMENDMENT ACT (No. 3) 1992
No. 98, 1992 - DIVISION Division 1 - Principal Act
TAXATION LAWS AMENDMENT ACT (No. 3) 1992
No. 98, 1992 - SECT 3 Principal Act
3. In this Part, "Principal Act" means the Income Tax Assessment Act 1936.*1* *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,
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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, 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); Nos. 47, 49, 104, 123, 168 and 174, 1985; No. 173, 1985 (as amended by No. 49, 1986); Nos. 41, 46, 48, 51, 109, 112 and 154, 1986; No. 49, 1986 (as amended by No. 141, 1987); No. 52, 1986 (as amended by No. 141, 1987); No. 90, 1986 (as amended by No. 141, 1987); Nos. 23, 58, 61, 120, 145 and 163, 1987; No. 62, 1987 (as amended by No. 108, 1987); No. 108, 1987 (as amended by No. 138, 1987); No. 138, 1987 (as amended by No. 11, 1988); No. 139, 1987 (as amended by Nos. 11 and 78, 1988); Nos. 8, 11, 59, 75, 78, 80, 87, 95, 97, 127 and 153, 1988; Nos. 2, 11, 56, 70, 73, 105, 107, 129, 163 and 167, 1989; No. 97, 1989 (as amended by No. 105, 1989); Nos. 20, 35, 45, 57, 58, 60, 61, 87, 119 and 135, 1990; Nos. 4, 5, 6, 48, 55, 100, 203, 208, and 216, 1991; and No. 3, 1992. NOTES TAXATION LAWS AMENDMENT ACT (No. 3) 1992
No. 98, 1992 - DIVISION 2 Division 2 - Amendments relating to horticulture
TAXATION LAWS AMENDMENT ACT (No. 3) 1992
No. 98, 1992 - SECT 4 Interpretation
4. Section 6 of the Principal Act is amended: (a) by omitting "or" from paragraph (c) of the definition of "primary production" in subsection (1); (b) by inserting after paragraph (d) of the definition of "primary production" in subsection (1) the following word and paragraph: "; or (e) horticulture;"; (c) by inserting in subsection (1) the following definition: " 'horticulture' includes: (a) propagation as well as cultivation; or (b) propagation or cultivation of seeds, bulbs, spores or similar things; or (c) propagation or cultivation of fungi; or (d) propagation or cultivation in environments other than soil, whether natural or artificial; but does not include the doing of any thing other than in the course of, or for the purposes of, a business;". TAXATION LAWS AMENDMENT ACT (No. 3) 1992
No. 98, 1992 - SECT 5 Application of amendments
5. The amendments made by this Division apply to the doing of things after 26 May 1992. TAXATION LAWS AMENDMENT ACT (No. 3) 1992
No. 98, 1992 - DIVISION 3 Division 3 - Amendment relating to expenditure on research and development activities
TAXATION LAWS AMENDMENT ACT (No. 3) 1992
No. 98, 1992 - SECT 6 Expenditure on research and development activities
6. Section 73B of the Principal Act is amended by omitting from paragraph (2)(c) "determining the size or quality of any deposits" and substituting "discovering deposits, determining more precisely the location of deposits or determining the size or quality of deposits". TAXATION LAWS AMENDMENT ACT (No. 3) 1992
No. 98, 1992 - SECT 7 Application of amendment
7. The amendment made by this Division applies to activities carried on on or after 1 July 1985 (including after the commencement of this section). TAXATION LAWS AMENDMENT ACT (No. 3) 1992
No. 98, 1992 - DIVISION 4 Division 4 - Amendments relating to pooled