25 Nov 10 2010 Measures No 5 Bill introduced
SCHEDULE 1 to the Bill amends the ITAA 1997 to make two changes to the eligibility criteria for accessing the film tax offsets. These amendments apply retrospectively from 1 July 2010. As the changes broaden access to the offsets, this retrospectivity is beneficial for affected taxpayers.
SCHEDULE 2 to the Bill amends Division 247 of the ITAA1997 and Division 247 of the Income Tax (Transitional Provisions) Act 1997 to adjust the benchmark interest rate used to determine the cost of capital protection on a capital protected borrowing from the Reserve Bank of Australia’s (RBA’s) Indicator Lending Rate for Personal Unsecured Loans to the RBA’s Indicator Lending Rate for Standard Variable Housing Loans plus 100 basis points.
The new benchmark interest rate for determining the cost of capital protection on a capital protected borrowing applies to capital protected borrowings entered into or extended after 7.30 pm on 13 May 2008, and applies to capital protected borrowings entered into or extended at or before 7:30 pm on 13 May 2008 from 1 July 2013.
SCHEDULE 3 to the Bill amends the ITAA 1997 to extend the main residence CGT exemption to a CGT event that is a compulsory acquisition (or similar arrangement) of part of the adjacent land or structure of a main residence, without the compulsory acquisition applying to the dwelling.
This measure applies to CGT events happening on or after the day this Bill receives Royal Assent. However, taxpayers may choose to apply the measure to CGT events relating to them that happen in the period that starts with the 2004-05 income year and ends immediately before this Bill receives Royal Assent.
SCHEDULE 4 to the Bill extends the benefits in section 295-460 of the ITAA 1997 to include terminal medical condition benefits. The benefits in section 295-460 are benefits in relation to which complying superannuation funds and retirement savings account providers can claim a deduction. This measure applies from 16 February 2008.
SCHEDULE 5 to the Bill amends the A New Tax System (Goods and Services Tax) Act 1999 to allow non-profit sub-entities to access the goods and services tax concessions available to their parent entity, including the higher registration turnover threshold available for non-profit bodies. This measure applies from the start of the first tax period after Royal Assent.
SCHEDULE 6 to the Bill amends the Taxation Administration Act 1953 to provide that it will not be mandatory for the Commissioner of Taxation to apply a payment, credit or running balance account surplus against a tax debt that is a business activity statement amount unless that amount is due and payable. This measure applies on and from 1 July 2011.
SCHEDULE 7 to the Bill amends the ITAA 1997 to include school uniforms in the range of eligible expenses for the education expenses tax offset from 1 July 2011. This measure applies to assessments for the 2011-12 and later years of income.