SCHEDULE 1 to the Bill amends the A New Tax System (Goods and Services Tax) Act 1999 to ensure the third party payment adjustment provisions operate appropriately where there are third party payments relating to a supply by the payer that is not taxable or a supply to the payee that is goods and services tax (GST)-free, not connected with Australia or subject to a refund under the Tourist Refund Scheme.
Date of effect: 1 July 2010.
SCHEDULE 2 to the Bill amends the ITAA 1997 to provide a CGT roll-over for taxpayers who replace an entitlement to water with one or more different entitlements. This Schedule will also allow taxpayers to include any termination fees they incur in relation to an asset in the asset’s cost base.
Date of effect: Taxpayers can elect that the water entitlement roll-over apply to CGT events that happen in the 2005-06 and later income years or, in the absence of an election, on the day that the amendments receive Royal Assent. Taxpayers can elect that the termination fee cost base changes apply to CGT events happening on or after 1 July 2008 or, in the absence of an election, on the day that the amendments receive Royal Assent.
PART 1 OF SCHEDULE 3 to the Bill amends Division 230 of the ITAA 1997 and the consequential and transitional provisions inserted by the Tax Laws Amendment (Taxation of Financial Arrangements) Act 2009 (TOFA Act 2009) to make minor policy refinements and technical amendments and corrections to the provisions.
PART 2 OF SCHEDULE 3 to the Bill extends the transitional arrangements relating to the application of the debt/equity rules made by the New Business Tax System (Debt and Equity) Act 2001 (Debt and Equity Act 2001) to 1 July 2010 for Upper Tier 2 instruments issued before 1 July 2001.
Date of effect: The amendments to Division 230 of the ITAA 1997 and other provisions inserted by the TOFA Act 2009 apply for income years commencing on or after 1 July 2010, unless a taxpayer elects to apply Division 230 for income years commencing on or after 1 July 2009. The amendments to the debt/equity transitional provisions commence from Royal Assent and apply to Upper Tier 2 instruments that are issued before 1 July 2001.
PART 3 OF SCHEDULE 3 to the Bill amends Division 775 (foreign currency gains and losses provisions) of the ITAA 1997 to extend the scope of a number of compliance cost saving measures, and to make technical amendments to ensure that the provisions operate as intended.
Date of effect: These amendments apply from 17 December 2003.
SCHEDULE 4 to the Bill amends the ITAA 1997 to make it easier for takeovers and mergers regulated by the Corporations Act 2001 to qualify for the capital gains tax (CGT) scrip for scrip roll-over.
Date of effect: These amendments apply to CGT events that happen on or after 6 January 2010.
SCHEDULE 5 to the Bill amends the Income Tax Assessment Act 1936 to increase the threshold from $1,500 to $2,000 per annum, above which a taxpayer may claim the medical expenses tax offset and to commence annually indexing the threshold to the consumer price index.
Date of effect: These amendments apply to the income year starting on or after 1 July 2010. The first indexation adjustment to the claim threshold will occur on 1 July 2011.
SCHEDULE 6 to the Bill amends the ITAA 1997 to update the list of deductible gift recipients (DGRs) to make one entity a deductible gift recipient, extend the period of listing of one entity and change the name of another entity.
SCHEDULE 7 to the Bill adds three new DGR categories into the ITAA 1997. This measure widens the accessibility of tax deductible donations to all entities providing volunteer based emergency services, including volunteer fire brigades. This measure also extends DGR status to all state and territory government bodies that coordinate volunteer fire brigades and State Emergency Services. These amendments commence from the date of Royal Assent.
In media release No 2010/139, issued 23 June2010, the Assistant Treasurer, Senator Nick Sherry commented on the changes proposed by the Bill.