16 Sep 099 2009 Measures No 5 Bill introduced into House
On 16 September 2009, Tax Laws Amendment (2009 Measures No 5) Bill 2009 was introduced into the House of Representatives. The following is an extract from the Explanatory Memorandum.
SCHEDULE 1 to the Bill amends the A New Tax System (Goods and Services Tax) Act 1999 to ensure that a representative of an incapacitated entity is responsible for the GST consequences that arise during its appointment. The amendments reverse the decision of the Federal Court in FCT v PM Developments Ltd  FCA 1886. The proposed amendments will also ensure that the GST consequences that arise from an action performed by the representative are the same as those that would have arisen had the action been performed by the incapacitated entity.
The main operative provisions will take effect from 1 July 2000, the introduction date of the GST. The consequential amendment to the Fuel Tax Act 2006 will take effect from 1 July 2006 which is the commencement date for that Act. The remaining consequential and minor amendments will commence from the date of Royal Assent.
SCHEDULE 2 to the Bill amends the pay as you go instalment provisions to address a number of issues arising out of amendments to the Taxation Administration Act 1953 contained in the Tax Laws Amendment (Taxation of Financial Arrangements) Act 2009 (TOFA Act). The amendments generally apply to entities with effect from their first applicable income year (within the meaning of item 102 of Schedule 1 to the TOFA Act and later income years.
SCHEDULE 3 to the Bill amends the ITAA 1997 to ensure that the outer regional and remote payment made under the Helping Children with Autism package is not subject to income tax. This measure applies retrospectively to amounts received in the 2008-09 income year and later income years and does not adversely affect taxpayers.
SCHEDULE 4 to the Bill amends the ITAA 1997 to ensure that payments made under the Continence Aids Payment Scheme are not subject to income tax. This measure applies to amounts received in the 2009-10 income year and later income years.
SCHEDULE 5 to the Bill amends section 128F of the ITAA1936 to extend eligibility for exemption from interest withholding tax to debt issued in Australia by the Commonwealth or Commonwealth authorities. This amendment applies to interest paid on or after the commencement date. The commencement date is the day after Royal Assent.
SCHEDULE 6 to the Bill provides the Victorian Bushfire Appeal Fund Independent Advisory Panel with greater scope to support communities and individuals affected by the 2009 Victorian bushfires. This measure applies to payments made by the Red Cross to the Appeal Fund after 28 January 2009 and before 6 February 2014.
In a joint media release issued on 16 September 2009, the Assistant Treasurer, Senator Nick Sherry, and the Parliamentary Secretary for Victorian Bushfire Reconstruction, Bill Shorten, commented on the introduction of the legislation, saying that the changes provided for by Schedule 6 of the Bill will be one-off, representing the unprecedented and tragic circumstances of the Victorian Bushfires, and will not apply to other cases, where the current charitable taxation law will continue to apply in full.
For a copy of the Bill, go here
For a copy of the Explanatory Memorandum, go here
For a copy of the Ministers' media release, No 2009/052, 16 September 2009, go here