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17 Mar 1010 2010 Measures No 2 Bill introduced into Parliament

On 17 March 2010, Tax Laws Amendment (2010 Measures No 2) Bill 2010 was introduced into the House of Representatives. The following is extracted from the Explanatory Memorandum.

SCHEDULE 1 to the Bill amends the non-commercial loan rules in Division 7A of the ITAA 1936 to prevent a shareholder of a private company (or an associate of the shareholder) accessing tax-free dividends from the provision of company assets, for less than their market value. Other technical amendments have also been made to strengthen the non-commercial loan rules to ensure that they operate in accordance with their original policy intent and cannot be circumvented by the use of a closely held corporate limited partnership or interposed entities. This measure applies from 1 July 2009.

SCHEDULE 2 to the Bill amends the ITAA 1936, the ITAA 1997 and the Taxation Administration Act 1953 to extend the existing arrangements for tax file number (TFN) withholding to cover closely held trusts, including family trusts. The information collected by the ATO under these amendments will facilitate data-matching and allow the ATO to check whether the assessable income of beneficiaries of these trusts correctly includes their share of the net income of the trust.: This measure applies from 1 July 2010.

SCHEDULE 3 to the Bill amends the ITAA 1997 to exempt from income tax the Higher Education Contribution Scheme-Higher Education Loan Programme benefit (HECS-HELP benefit). This measure applies to assessments for the 2008-09 income year and later income years. It was not previously announced.

SCHEDULE 4 to the Bill amends the ITAA 1997 to update the list of deductible gift recipients (DGRs) to include two new entities, and extend the period for which another DGR may collect deductible gifts.

SCHEDULE 5 to the Bill amends the ITAA 1997 to make the Global Carbon Capture and Storage Institute Limited (the Institute) income tax exempt for a four-year period. The exemption applies to income received on or after 1 July 2009 and before 1 July 2013.

SCHEDULE 6 to the Bill amends various taxation laws to repeal over 100 unlimited amendment periods. As result, a number of provisions which provide the Commissioner of Taxation with an indefinite time to amend taxpayers’ assessments are replaced with the existing amendment provisions that have certain finite periods. This measure removes the specified unlimited amendment periods the day after this Bill receives Royal Assent.

In media release No 2010/047, issued on 17 March 2010, the Assistant Treasurer, Senator Nick Sherry, commented on the introduction of the Bill and said that the Bill contains several key measures announced in the 2009-10 Budget, in addition to a range of other amendments.

In media release No 2010/048, issued on 17 March 2010, the Assistant Treasurer also commented on the repeal of over 100 unlimited amendment periods contained in Schedule 6 to the Bill.


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