House of Representatives
Tax Laws Amendment (2007 Measures No. 3) Bill 2007
Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello MP)Index
Schedule 1: Distributions to entities connected with a private company and related amendments
| Bill reference | Paragraph number |
| Item 1, section 109B of the ITAA 1936 | 1.14 |
| Items 2 and 3, note under subsections 109C(3A) and 109D(4) of the ITAA 1936 | 1.17 |
| Items 4, 5 and 9, paragraph 109E(1)(c) and subsection 109E(2) of the ITAA 1936 | 1.19 and 1.20 |
| Items 6, 10 and 12, subsections 109E(3A) and (3B), 109N(3A) and (3B) and 109R(6) of the ITAA 1936 | 1.29 |
| Items 7 and 9, subsections 109G(3A) and (3B) of the ITAA 1936 | 1.23 |
| Items 8, 34 and 35, subsection 109Y(2), paragraphs 109G(3)(b), 160AEA(1)(d) and 268-40(5)(b) in Schedule 2F of the ITAA 1936 and paragraph 165-60(5)(b), subparagraph 202-45(g)(ii) and section 10-5 of the ITAA 1997 | 1.77 |
| Items 10 and 12, subsections 109N(3C) and (3D) and 109R(7) of the ITAA 1936 | 1.30 |
| Item 12, subsection 109R(5) of the ITAA 1936 | 1.27 |
| Item 13, section 109RB of the ITAA 1936 | 1.31 |
| Item 13, paragraph 109RB(1)(b) of the ITAA 1936 | 1.32 and 1.33 |
| Item 13, subsection 109RB(3) of the ITAA 1936 | 1.35 |
| Item 13, subsection 109RB(4) of the ITAA 1936 | 1.38 |
| Item 13, subsection 109RB(5) of the ITAA 1936 | 1.39 |
| Items 13 and 28, subsection 109RB(6) of the ITAA 1936 and subparagraph 202-45(g)(i) of the ITAA 1997 | 1.41 |
| Items 13 and 28, section 109RC of the ITAA 1936 and subparagraph 202-45(g)(i) of the ITAA 1997 | 1.45 |
| Item 13, subsection 109RC(3) of the ITAA 1936 | 1.46 |
| Item 13, section 109RD of the ITAA 1936 | 1.50 |
| Item 14, subsection 109UA(5) | 1.54 |
| Item 15, subsection 109X(4) | 1.55 |
| Items 16 and 17, subsection 109Y(2) of the ITAA 1936 | 1.57 |
| Item 18, subsection 109Y(2) of the ITAA 1936 | 1.22 |
| Items 19 and 20, subsection 109ZC(2) of the ITAA 1936 | 1.58 |
| Item 23, definition of 'family law obligation' in section 109ZD of the ITAA 1936 | 1.49 |
| Item 29, section 205-30 of the ITAA 1997 | 1.13 |
| Items 30 to 32, subsection 136(1) paragraph (s) of the definition of 'fringe benefit' of the Fringe Benefits Tax Assessment Act 1986 | 1.61 |
| Items 30 to 32, definition of 'fringe benefit' in subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986 and the note in subsection 16(1) | 1.62 |
| Item 33 | 1.65 |
| Items 34 to 36, subsection 109Y(2) of the ITAA 1936 | 1.66 |
| Item 42, subitems 43(4) and (6), subsection 214-60(1A) of the ITAA 1997 | 1.75 |
| Item 42, subsection 214-60(1A) of the ITAA 1997 | 1.68 |
| Subitem 43(1) | 1.69 |
| Subitem 43(2) | 1.70 |
| Subitem 43(3) | 1.71 |
| Subitem 43(4) | 1.42, 1.72, 1.73 and 1.74 |
| Subitem 43(5) | 1.76 |
Schedule 2: Transitional excess non-concessional contributions
| Bill reference | Paragraph number |
| Item 1, paragraph 292-80(3)(b) | 2.12 |
| Item 2, subsection 292-80(7) | 2.13 |
| Item 2, subsection 292-80(8) | 2.14 |
Schedule 3: Capital gains of testamentary trusts
| Bill reference | Paragraph number |
| Item 1, paragraph 103-25(3)(aa) | 3.22 |
| Item 2, paragraph 115-230(1)(a) | 3.10 |
| Item 2, paragraph 115-230(1)(b) | 3.11 |
| Item 2, paragraph 115-230(2)(a) | 3.12 |
| Item 2, paragraph 115-230(2)(b) | 3.13 |
| Item 2, subsection 115-230(3) | 3.15 |
| Item 2, subsection 115-230(4) | 3.25 |
| Item 2, paragraph 115-230(4)(a) | 3.23 |
| Item 2, paragraph 115-230(4)(b) | 3.24 |
| Item 2, paragraph 115-230(5)(a) | 3.20 |
| Item 2, paragraph 115-230(5)(b) | 3.21 |
| Item 3, subsection (1) | 3.28 |
| Item 3, subsection (2) | 3.29 |
| Item 3, subsection (3) | 3.30 |
| Item 4 | 3.33 |
| Item 4, paragraphs (a) and (b) | 3.32 |
Schedule 4: Superannuation of deceased military and police
| Bill reference | Paragraph number |
| Item 1 | 4.26 |
| Item 2, subsection 302-195(2) | 4.14 |
| Item 2, subsection 302-195(3) | 4.15 |
| Item 3, definition of 'died in the line of duty' in subsection 995-1(1) | 4.27 |
| Item 4 | 4.25 |
| Item 5 | 4.22 |
Schedule 5: Thin capitalisation
| Bill reference | Paragraph number |
| Item 1, subsection 820-45(1) | 5.10 |
Schedule 6: Repeal of dividend tainting rules
| Bill reference | Paragraph number |
| Item 1 | 6.7 |
| Item 2, paragraph 177EA(17)(ga) of the ITAA 1936 | 6.15 |
| Items 3, 5, 6 and 7, subsections 197-50(1), 375-872(4) and 975-300(3) | 6.12 |
| Item 4, paragraph 202-45(e) | 6.9 |
| Item 8 | 6.16 |
Schedule 7: Interest withholding tax
| Bill reference | Paragraph number |
| Item 1 | 7.26, 7.27, 7.30, 7.31 |
| Items 1 to 3 | 7.58 |
| Item 2 | 7.28 |
| Item 3 | 7.29 |
| Item 4 | 7.53, 7.54 |
| Item 5 | 7.57 |
| Item 6 | 7.34 |
| Items 7 and 8 | 7.39, 7.42 |
| Item 8 | 7.33, 7.41, 7.43, 7.45, 7.47, 7.50, 7.51, 7.52 |
| Item 9 | 7.60, 7.62 |
| Item 10 | 7.64 |
| Items 11 and 12 | 7.65 |
| Item 13 | 7.66 |
| Items 14 and 15 | 7.63 |
| Item 16 | 7.70, 7.74, 7.77 |
Schedule 8: Forestry managed investment schemes
Chapter 8
| Bill reference | Paragraph number |
| Item 2, section 394-5 | 8.20 |
| Item 2, sections 394-10 and 394-40 | 8.25 |
| Item 2, paragraph 394-10(1)(a) | 8.21 |
| Item 2, paragraph 394-10(1)(b) | 8.21 |
| Item 2, paragraph 394-10(1)(c) | 8.21 |
| Item 2, paragraph 394-10(1)(c) and subsection 394-35(1) | 8.38 |
| Item 2, paragraph 394-10(1)(e) | 8.21 |
| Item 2, paragraph 394-10(1)(f) and subsection 394-10(4) | 8.21 |
| Item 2, subsection 394-10(2) | 8.22 |
| Item 2, subsection 394-10(3) | 8.23 |
| Item 2, subsections 394-10(5) and (6) | 8.21 |
| Item 2, subsection 394-10(7) | 8.21 |
| Item 2, subsection 394-15(1) | 8.21 |
| Item 2, section 394-20 | 8.24 |
| Item 2, section 394-25 | 8.33 |
| Item 2, subsection 394-25(2) | 8.34 |
| Item 2, section 394-35 | 8.36 |
| Item 2, subsections 394-35(1) to (3) | 8.46 |
| Item 2, subsection 394-35(2) | 8.41 |
| Item 2, subsection 394-35(3) | 8.42 |
| Item 2, subsection 394-35(4) | 8.47 |
| Item 2, subsection 394-35(5) | 8.48 |
| Item 2, subsection 394-35(6) | 8.43 |
| Item 2, subsection 394-35(7) | 8.49 |
| Item 2, subsection 394-35(8) | 8.52 |
| Item 2, subsection 394-45(1) | 8.57 |
| Item 2, subsection 394-45(2) | 8.60 |
| Item 2, subsection 394-45(3) | 8.64 |
| Item 2, subsection 394-45(4) | 8.31, 8.66 |
| Item 3, section 394-5 of the Taxation Administration Act 1953 (TAA 1953) | 8.69 |
| Item 3, section 394-10 of the TAA 1953 | 8.70 |
| Items 4 to 6 and 10B, paragraphs 82KH(1)(pa), 82KH(1G)(pa) and 82KH(1L)(p) of the ITAA 1936 | 8.78 |
| Item 7, subsection 262A(2AAA) of the ITAA 1936 | 8.72 |
| Item 7, subsections 262A(2AAB) and (2AAC) of the ITAA 1936 | 8.73 |
| Item 12, section 10-5 | 8.79 |
| Item 13, section 10-5 | 8.80 |
| Item 14, section 12-5 | 8.81 |
| Item 15, section 15-46 | 8.68 |
| Items 17 to 25, subsection 995-1 | 8.82 |
| Item 26, subsection 394-220(1) and (2) | 8.75 |
| Item 26, subsection 394-200(3) and (4) | 8.76 |
Schedule 8: Forestry managed investment schemes
Chapter 9
| Item 1, sections 82KZMGA and 82KZMGB | 9.59 |
| Item 1, section 82KZMGB | 9.60 |
| Item 1, paragraph 82KZMGB(1)(d) | 9.61 |
| Item 2, subsection 394-10(1) | 9.41 |
| Item 2, subsection 394-10(3) | 9.37 |
| Item 2, subsections 394-10(3) and 394-15(4) and (5) | 9.39 |
| Item 2, subsection 394-10(5) | 9.32 |
| Item 2, subsection 394-10(6) | 9.35 |
| Item 2, subsection 394-15(5) | 9.23 |
| Item 2, section 394-25 | 9.20, 9.26 |
| Item 2, subparagraph 394-25(1)(b)(ii) and subsection 394-25(2) | 9.36 |
| Item 2, subsection 394-25(2) | 9.21, 9.27 |
| Item 2, paragraph 394-25(2)(b) | 9.28 |
| Item 2, subsection 394-25(3) | 9.29 |
| Item 2, paragraph 394-30(1)(c) | 9.43 |
| Item 2, subsections 394-30(2) to (5) | 9.55 |
| Item 2, subsections 394-30(2) to (6) | 9.53 |
| Item 2, paragraph 394-30(2)(a) | 9.48 |
| Item 2, paragraph 394-30(2)(b) and subsections 394-30(3) to (5) | 9.47 |
| Item 2, subsection 394-30(5) | 9.55 |
| Item 2, subsection 394-30(6) | 9.55 |
| Item 2, subsections 394-30(7) and (8) | 9.50 |
| Item 2, subsection 394-30(9) | 9.51 |
| Item 16, section 112-97, item 22A | 9.63 |
| Item 26, section 394-220 | 9.62 |
Schedule 9: Non-resident trustee beneficiaries
| Bill reference | Paragraph number |
| Item 1, subsection 98(2A) | 10.15 |
| Item 1, subsections 98(2A) and (3) | 10.16 |
| Item 1, subparagraphs 98(2A)(a)(iii) and (iv) | 10.27 |
| Item 1, subsection 98(3) | 10.15, 10.16 |
| Item 1, paragraph 98(3)(a) | 10.30 |
| Item 1, subsection 98(4) | 10.17 |
| Items 1 and 27 to 29, paragraph 98(3)(b), and sections 5 and 28 of the Income Tax Rates Act 1986 | 10.30 |
| Items 1 and 27 to 29, subsection 98(4) and sections 5 and 28 of the Income Tax Rates Act 1986 | 10.31 |
| Items 2 and 3, subsection 98A(1) and paragraph 98A(2)(a) | 10.58 |
| Item 4, subsection 98A(3) | 10.36 |
| Item 4, subsection 98A(4) | 10.37 |
| Items 4, 9 and 10, subsection 98A(4) and subsection 100(1), note 2 | 10.41 |
| Item 5, section 98B | 10.42 |
| Item 5, paragraph 98B(2)(c) | 10.42 |
| Item 5, subsection 98B(3) | 10.44 |
| Item 5, subsection 98B(4) | 10.45 |
| Items 6 and 7, section 99B | 10.59 |
| Item 8, section 99E | 10.28 |
| Item 11, subsection 100(1B) | 10.40 |
| Item 12, subsection 100(3) | 10.43 |
| Item 14, section 12-5 of the ITAA 1997 | 10.57 |
| Item 15, section 13-1 of the ITAA 1997 | 10.60 |
| Item 16, subparagraphs 115-215(2)(b)(ii) and (iii) of the ITAA 1997 | 10.47 |
| Items 17 to 20, section 115-220 | 10.61 |
| Item 21, section 115-222 of the ITAA 1997 | 10.23 |
| Item 22, subparagraph 207-50(3)(b)(ii) | 10.63 |
| Item 23, subsection 802-17(1) of the ITAA 1997 | 10.20 |
| Item 23, subsection 802-17(3) of the ITAA 1997 | 10.19 |
| Items 24 to 26, subsections 855-40(3) and (4) of the ITAA 1997 | 10.53 |
| Item 26 | 10.55 |
| Items 27 and 28, section 5 of the Income Tax Rates Act 1986 | 10.62 |
| Item 30 | 10.49 |
| Item 31 | 10.52 |
| Items 32 and 33 | 10.50 |
| Item 34 | 10.55 |
Schedule 10: Distributions to foreign residents from managed investment trusts
| Bill reference | Paragraph number |
| Item 1, subsection 12-385(2) | 11.33 |
| Item 1, subsection 12-390(1) | 11.48 |
| Item 1, subsection 12-390(2) | 11.49 |
| Item 1, item 1 in the table in paragraph 12-395(1)(b) | 11.13 |
| Item 1, item 2 in the table in paragraph 12-395(1)(b) | 11.14 |
| Item 1, item 3 in the table in paragraph 12-395(1)(b) and subsection 12-395(2) | 11.15 |
| Item 1, subsection 12-395(3) | 11.17 |
| Item 1, subsection 12-395(4) | 11.19 |
| Item 1, subsection 12-395(5) | 11.20 |
| Item 1, paragraph 12-395(5)(b) | 11.21 |
| Item 1, subsection 12-400(1) | 11.22 |
| Item 1, step 1 in the method statement in subsection 12-400(2) | 11.23 |
| Item 1, step 2 in the method statement in subsection 12-400(1), subsection 12-400(3) | 11.25 |
| Item 1, paragraph (b) of step 2 in the method statement in subsection 12-400(2) | 11.27 |
| Item 1, step 3 in the method statement in subsection 12-400(2) | 11.29 |
| Item 1, subsection 12-400(4) | 11.31 |
| Item 1, subsection 12-400(5) | 11.32 |
| Item 1, paragraph 12-405(1)(a) | 11.37 |
| Item 1, paragraph 12-405(1)(b) | 11.37 |
| Item 1, paragraph 12-405(1)(c) | 11.40 |
| Item 1, paragraph 12-405(1)(d) and subsection 12-405(2) | 11.36 |
| Item 1, section 12-410 | 11.33 |
| Item 1, subsection 12-415(1) | 11.43 |
| Item 1, subsection 12-415(2) | 11.41 |
| Item 1, subsection 12-415(3) | 11.45 |
| Item 1, paragraph 12-420(2)(a) | 11.46 |
| Item 1, paragraph 12-420(2)(b) | 11.47 |
| Item 2, section 18-50 | 11.52 and 11.53 |
| Item 2, subsection 18-50(4) | 11.55 |
| Item 2, subsections 18-50(5) and (6) | 11.54 |
| Item 6, section 99F of the ITAA 1936 | 11.59 |
| Item 6, section 99G of the ITAA 1936 | 11.60, 11.61, 11.62 |
| Item 6, section 99H of the ITAA 1936 | 11.63 |
| Item 7, subsection 100(1C) of the ITAA 1936 | 11.64 |
| Item 8 | 11.65 |
| Item 9 | 11.66 |
| Item 14 | 11.67 |
| Item 15 | 11.68 |
| Items 16 to 18 | 11.69 |
| Item 19, subsection 16-153(4) | 11.70 |
| Items 20 to 24 | 11.71 |
| Items 25 and 26 | 11.72 |
| Items 27 and 28, subsections 18-15(3) and 18-25(9) | 11.56 |
| Items 29 to 31 | 11.73 |
| Item 32 | 11.58 |