On 27 March 2014, Tax Laws Amendment (2014 Measures No 1) Bill 2014 was introduced into the House of Representatives.
The following is extracted from the Explanatory Memorandum.
SCHEDULE 1 to the Bill amends the ITAA 1997 and the Banking Act 1959 (Banking Act) to improve the operation of the Farm Management Deposit (FMD) Scheme by:
- allowing taxpayers to consolidate multiple FMDs that they might hold with different providers;
- raising the non-primary production income threshold; and
- limiting the rules in the Banking Act for unclaimed moneys to prevent them applying to FMDs.
Date of effect: The increase in the non-primary income threshold and the changes to allow taxpayer to consolidate FMDs apply to income years commencing on or after 1 July 2014.
SCHEDULE 2 to the Bill amends the A New Tax System (Goods and Services Tax) Act 1999 and the Taxation Administration Act 1953 to ensure that overpaid GST is refundable only in certain circumstances. The amendments allow taxpayers to determine their entitlement to a refund of excess GST rather than having to rely on the Commissioner of Taxation exercising a discretion to refund an overpaid amount of GST.
Date of effect: The amendments in Schedule 2 apply generally in working out the net amount for a tax period starting on or after the day following Royal Assent.