102MA(2)(a)

102MA(2)(b)

[Schedule 6, items 1 and 2]

207-59(1)

230-380(2) and (3)

230-380(6)(a)

995-1(1)(definition of 'non-arm's length limited resource debt')

[Schedule 6, items 3 to 6]

30-37(a)

Tax Laws Amendment (2006 Measures No . 3) Act 2006

2(1)(item 10 in the table)

Item 3 of Schedule 11

721-25(1A)(a)

30-5(1)

30-5(1)(note 1)

30-5(1)(note 2)

30-15(2)(note 1)

30-15(2)(note 2)

30-115

30-D

30-315(item 41 in the table)

104-185(2)(c)

112-48(item 1 in the table)

118-60(1)

[Schedule 6, items 11 to 20]

30-10

30-15

30-20

[Schedule 6, item 21]

11(1)

[Schedule 6, item 22]

252(1)

[Schedule 6, item 23]

7(1)

[Schedule 6, item 24]

13-1

[Schedule 6, items 25 and 26]

As a result of this amendment, the list of tax offsets includes references to 'film' covered in Division 376 and to 'life insurance company subsidiary joining consolidated group' in subsection 713-545(5).

2(1)

3AA(1A)

[Schedule 6, items 27 and 28]

This separation of definitions is consistent with a similar separation of definitions between the ITAA 1997 and the Income Tax Assessment Act 1936 (ITAA 1936): see subsection 995-1(2) of the ITAA 1997 and subsection 6(1AA) of the ITAA 1936. One reason for this is that the ITAA 1936 does not follow the 'one expression, one meaning' approach generally adopted in the ITAA 1997.

The body of the TAA 1953 also does not follow the 'one expression, one meaning' approach. By contrast, Schedule 1 to the TAA 1953 is effectively incorporated into the ITAA 1997, and does follow that approach.

8C(1)(a)

[Schedule 6, item 29]

The purpose of this amendment is to clarify that an offence under paragraph 8C(1)(a) is not limited to failure to furnish an approved form as defined in Schedule 1 to the TAA 1953, or any other particular form. For example, it would include a failure to lodge a Superannuation Guarantee statement as required under the Superannuation Guarantee (Administration) Act 1992 .

603(1)(h)

[Schedule 6, items 30 and 31]

The amendment applies to the 2007-08 and later income years. The amendment will allow the law to operate as intended and will not have a detrimental effect on taxpayers.

Div 305

[Schedule 6, item 32]

Section 305-80 is a continuation of the deduction previously allowable under former section 533B of Part XI of the ITAA 1936.

The amendment applies to the 2010-2011 and later income years. The amendment will allow the law to operate as intended and will not have a detrimental effect on taxpayers.

19-20(1)(a)

33-1 (definition of 'connected with')

[Schedule 6, items 33 and 34]

28-170(3)(item 2 in the table, column 2)

28-175(3)(b)

70-30(5)

70-35(1)(b)

70-100(6)(b) and 10(b)

165-115BB(2) (paragraph (a) of the definition of 'previous capital losses, deductions or trading stock losses')

165-115F(3) and (4)

385-135(3)(b)(ii)

715-145(2)(item 2 in the table, column headed 'If:')

723-50(2)(a)

723-50(2)(b)

725-225(5)

725-245(item 1 in the table, column headed 'Up interest')

725-245(item 2 in the table, column headed 'Up interest')

725-245(item 3 in the table, column headed 'Up interest')

725-310(2)

725-315

725-315(a)

725-315(2)

725-335(3)( item 2 in the table, column headed 'To:')

725-335(3)(items 4 to 6 in the table, column headed 'To:')

977-25(3)(b)

977-35(2)(b)

995-1(1)(paragraph (b) of the definition of 'apportionable deductions')

995-1(1)(paragraph (b) of the definition of 'consideration receivable')

[Schedule 6, items 35 to 59]

36-25(item 5 in the table relating to tax losses of companies)

36-25(item 1 in the table relating to tax losses of corporate tax entities)

36-25(item 1 in the table relating to tax losses of entities that become foreign hybrids)

70-80(3)(a)

115-228(1) (definition of 'net financial benefit')

124-445(a)

216-10(1)(b)

216-30

[Schedule 6, items 60 to 67]

9-20(1)(d)

113-5(1)

177-12(4)(b)

195-1(definition of 'non-cash benefit')

195-1(definition of 'withholding payment' covered by a particular provision in Schedule 1 to the Taxation Administration Act 1953)

195-1(definition of 'withholding payment')

Income Tax Assessment Act 1997

995-1 (Various definitions)

Taxation Administration Act 1953

426-1 in Schedule 1

426-5(a) in Schedule 1

426-5(b) in Schedule 1

426-40(1) in Schedule 1 (paragraph (a) of note 1)

426-55(1) in Schedule 1 (paragraph (a) of note 1)

426-65(1)(a) in Schedule 1

426-65(1)(b) in Schedule 1

446-5(6) in Schedule 1 (items 9 and 10 in the table )

850-100(8)(a) in Schedule 1 (example)

850-100(8)(b) in Schedule 1 (example)

[Schedule 6, items 68 to 93]

118-195(1) (at the end of the cell in item 1 in the table, column headed 'And also one of these items')

118-200(3)

[Schedule 6, items 94 to 96]

Income Tax Assessment Act 1936

170

170A

[Schedule 6, subitem 4(1) and item 188]

•

the beneficiary or trustee's ownership interest in the dwelling ends within two years of the deceased's death; and

•

just before the deceased's death, for post-CGT dwellings:

-

the dwelling was their main residence; and

-

it was not then being used to produce assessable income.

Where a trustee or beneficiary of a deceased estate cannot access a CGT exemption under section 118-195, section 118-200 may provide a partial exemption.

In particular, subsection 118-200(3) ensures that for post-CGT dwellings, where the trustee or beneficiary's ownership interest ends within two years of the deceased's death, the period between the deceased's death and when their ownership interest ends can be ignored when calculating a capital gain or capital loss.

The amendments give the Commissioner discretion to extend the time period in subsections 118-195(1) and 118-200(3) where the trustee or beneficiary of a deceased estate's ownership interest ends after two years from the deceased's death.

The Commissioner would be expected to exercise discretion in situations such as where:

•

the ownership of a dwelling or a will is challenged;

•

the complexity of a deceased estate delays the completion of administration of the estate;

•

a trustee or beneficiary is unable to attend to the deceased estate due to unforeseen or serious personal circumstances arising during the two-year period (for example, the taxpayer or a family member has a severe illness or injury); or

•

settlement of a contract of sale over the dwelling is unexpectedly delayed or falls through for circumstances outside the beneficiary or trustee's control.

These examples are not exhaustive.

In exercising this discretion, the Commissioner is expected to consider whether and to what extent the dwelling is used to produce assessable income and the period that the trustee or beneficiary held the ownership interest in the dwelling.

The amendments will apply in relation to CGT events that happen in the 2008-09 income year and later income years. The amendments are beneficial to taxpayers.

The operation of section 170 of the ITAA 1936 is modified so that taxpayers are able to seek an amended assessment to take advantage of these amendments where their original assessment was made before the commencement of these amendments but their period for seeking an amendment to their tax return has expired. Broadly, taxpayers are able to seek an amended assessment in these circumstances within two years of that commencement.

48-110(1)

48-115(1)(b)

48-110(2)(b)

51-110(1)

51-115(1)(b)

51-115(2)(b)

195-1 (definition of 'cease to be a member of a GST group')

195-1 (definition of 'cease to be a participant of a GST joint venture')

[Schedule 6, items 97 to 105]

Section 195-1 of the GST Act defines the terms 'cease to be a member of a GST group' and 'cease to be a participant of a GST joint venture' by reference to the Commissioner's approval of revocation of a member of a GST group or a participant of a GST joint venture respectively. These amendments remove these definitions as they are no longer needed following the introduction of a self-assessment system for GST groups and GST joint ventures by the Tax Laws Amendment (2010 GST Administration Measures No. 2) Act 2010 .

These amendments also make consequential amendments to Division 48 (GST groups) and Division 51 (GST joint ventures) by deleting the asterisk in front of the words 'cease to be a member of a GST group' and 'cease to be a participant of a GST joint venture' respectively.

152-70(2) and (3)

[Schedule 6, items 106 to 109]

Income Tax Assessment Act 1936

170

170A

[Schedule 6, subitem 4(2) and item 188]

Division 152 of the ITAA 1997 (all references in this Part are to this Act unless otherwise stated) provides four small business CGT concessions. To access these concessions in relation to a share in a company, it is necessary for that company to have one or more significant individuals. The significant individual test represents a readily verifiable proxy for active participation in a small business.

However, where shares are jointly held, those joint holders may be unable to qualify as a significant individual. To qualify as a significant individual, the individual's direct and indirect small business participation percentage in the company must be at least 20 per cent (sections 152-55 and 152-65).

Under subsection 152-70(1), an entity's direct small business participation percentage in a company is the smallest of the entity's percentage of:

•

the voting power in the company the entity is entitled to exercise;

•

any dividend payment that the entity is entitled to receive; and

•

any capital distribution that the entity is entitled to receive.

Where shares are jointly held, it is arguable that each joint holder in their own right has a zero percentage of voting power as no joint holder individually controls the voting power bestowed on the jointly held shares. This gives each joint holder a direct small business participation percentage of zero in relation to those jointly held shares and consequently may exclude them from qualifying for the small business CGT concessions.

These amendments switch off the voting power calculation in subsection 152-70(1) to accommodate joint shareholders for the purpose of qualifying for the small business CGT concessions. This has the effect that joint shareholders calculate their small business participation percentage based on the lesser of their percentage entitlement to any dividend or capital distribution of the company.

These amendments apply to CGT events happening in the 2006-07 income year and later income years, in line with the commencement of the original provisions. These amendments are beneficial for taxpayers.

The operation of section 170 of the ITAA 1936 is modified so that taxpayers are able to seek an amended assessment to take advantage of these amendments where their original assessment was made before the commencement of these amendments but their period for seeking an amendment to their tax return has expired. Broadly, taxpayers are able to seek an amended assessment in these circumstances within two years of that commencement.

11-15(item in the table headed 'family assistance')

11-15(item in the table headed 'social security or like payments')

52-10(1)(b)

52-10(1B) and (1C)

52-65(1)(bb) and (c)

52-65(1B) and (1C)

52-75(item 1C in the table)

52-75(cell in item 1 in the table, column headed 'Payment made because of a person's death')

52-75(cell in item 3 in the table, column headed 'Payment made because of a person's death')

52-75(cell in item 6 in the table, column headed 'Payment made because of a person's death')

52-75(cell in item 7 in the table, column headed 'Payment made because of a person's death')

52-75(cell in item 9 in the table, column headed 'Payment made because of a person's death')

52-150(1)

52-150(2)

[Schedule 6, items 117 to 131]

Repeals certain provisions from Division 52 that exempt payments from income tax which are no longer being made.

6-20(1)(note)

11-1

11-1(b) and (c)

11-10

11-15(heading)

11-15(after items in the table headed 'family assistance ' and 'foreign aspects of income taxation')

11-15(after item in the table headed 'health')

11-15(after item in the table headed 'life-insurance companies')

11-15(after item in the table headed 'social security or like payments')

11-15(after item in the table headed 'superannuation and related business')

[Schedule 6, items 132 to 142]

11-15(item in the table headed 'social security or like payments')

[Schedule 6, item 143]

Item 16 of Schedule 10 (heading)

Item 2 of Schedule 10

11-15(item in the table headed 'family assistance')

11-15(at the end of item in the table headed 'family')

[Schedule 6, items 144 and 145]

Income Tax Assessment Act 1997

11-15(item in the table headed 'family assistance')

11-15(item in the table headed 'social security or like payments')

[Schedule 6, items 146 to 148]

320F

320-180

320-180(1)

[Schedule 6, items 149 to 152]

The amendment ensures that a deferred annuity policy held by an individual that was purchased before 1 July 2007 from an eligible termination payment is included in the complying superannuation business of life insurance companies.

Prior to the introduction of the First Home Saver Account life insurance policies rules, deferred annuity policies were treated as virtual pooled superannuation trust policies. When the First Home Saver Account life insurance policies rules were introduced, virtual pooled superannuation trust policies were changed to complying superannuation / First Home Saver Account life insurance policies. Therefore from that time deferred annuity policies will be treated as complying superannuation / First Home Saver Account life insurance policies.

This amendment requires retrospective application from the 2007-08 income year, as that is when the Better Super reforms commenced. This amendment will be beneficial to affected taxpayers.

202B(2)

[Schedule 6, items 153 to 156]

In particular, the Commissioner will be able to determine the most efficient application method and how the documentary evidence is to be provided. This will enable electronic lodgment of applications and ensure there is clear and consistent direction as to the manner in which a TFN application is to be made.

405-45 (formula in step 2 in the method statement)

[Schedule 6, items 157 and 158]

Division 405 of the ITAA 1997 was enacted by the Tax Law Improvement Act (No. 1) 1998 . Section 405-45 was designed to replace section 158J of the ITAA 1936. Section 158J contained a formula to allocate apportionable deductions between the taxpayer's special professional income and their other income. When the section 158J formula was reproduced in section 405-45, the denominator was transcribed incorrectly such that '+' became '-'.

Both before and after 1998, the ATO systems have consistently calculated taxable professional income using a '+' in the denominator when applying the formula. A retrospective amendment would ensure that the formula contained in the Act accords with the intent of the law, and ATO processing of tax returns.

713-265(heading)

[Schedule 6, item 159]

715-90(2)

[Schedule 6, items 160 and 161]

The amendment ensures that the leaving entity can apply the assumptions that are ordinarily applied in respect of trading stock losses for the purposes of determining whether it satisfies the same business test.

This amendment applies from the commencement of section 715- 90, which was 1 July 2002. The amendment is beneficial to taxpayers, as it will make it easier for them to satisfy the same business test (and therefore avoid the operation of the integrity rules).

316-155(2)

[Schedule 6, items 162 and 163]

Demutualisation involves the participants of a friendly society giving up the right to benefit in the future from any accumulated mutual surplus that has been (or may be) built up in the fund. Upon demutualisation there is effectively a distribution of any accumulated mutual surplus to the participants. Ordinarily, this triggers a CGT taxing point as participants may receive shares, rights to acquire shares or cash.

There are different conditions to access the CGT concessions under Division 316 depending on if the demutualising friendly society has lost policy holders or not. If a mutual fund does not have lost policy holders, there is no requirement that the demutualisation scheme be court-approved. If a friendly society has lost policy holders, the demutualisation scheme must be court-approved and a lost policy holders' trust must be established to hold distributed assets or cash on the behalf of the lost policy holders (subsection 316-155(2)).

Since the introduction of Division 316, it has become apparent that where there are lost policy holders a demutualisation can proceed without court approval. Accordingly, the requirement in subsection 316-155(2) for court approval is an unnecessary impediment to demutualisations where there are lost policy holders.

The amendments will remove the requirement in subsection 316-155(2) that the lost policy holders' trust has to exist under a scheme approved by a court. This will ensure that lost policy holders that have an interest in the demutualisation will receive equal CGT treatment to other policy holders where the other relevant conditions are satisfied.

The amendment applies in relation to demutualisations occurring on or after 1 July 2008 so that demutualisations that have already applied the demutualisation concessions may benefit from this amendment.

40-80(1)(c)(i)

40-95(11)(b)

40-110(3B)

40-740(1)(d)

124-710(1)(a)

855-20(b)

995-1 (definition of 'exploration or prospecting')

995-1(1) (paragraph (b) of the definition of 'housing and welfare')

995-1 (definition of 'minerals')

995-1 (definition of 'mining operations')

995-1 (definition of 'mining, quarrying or prospecting information')

995-1 (definition of 'mining, quarrying or prospecting rights')

995-1 (definition of 'natural resources')

995-1 (definition of 'petroleum')

[Schedule 6, items 164 to 176]

The amendments also fix the asterisking of the terms 'minerals' and 'petroleum'.

Corrects the spelling of the word 'education' in paragraph (b) of the definition of 'housing and welfare'.

995-1(1)

[Schedule 6, items 177 and 178]

705-115(1) (formula)

711-45(1)

711-45(3) (formula)

Taxation Administration Act 1953

288-80(3) in Schedule 1 (formula)

[Schedule 6, items 179 to 182]

53-10 (paragraph (a) of the cell in item 5 in the table, column headed '... is exempt subject to these exemptions and special conditions:')

[Schedule 6, item 183]

This amendment ensures that an income tax exemption for a United Kingdom wounds and disability pension paid to members of the armed services continue. The reference to 'subsection 315(2) of the Income and Corporation Taxes Act 1988 of the United Kingdom' in column 3 of item 5 in the table in section 53-10 is being replaced with the reference to 'section 641 of the Income Tax (Earnings and Pensions) Act 2003 (UK) '.

195-1(definition of 'electronic signature')

[Schedule 6, item 184]

22

[Schedule 6, item 185]

45-910(3)(c) in Schedule 1

45-910(3) in Schedule 1 (note)

[Schedule 6, items 186 and 187]

170A

[Schedule 6, items 188 and 189]

A taxpayer can take advantage of retrospective changes to the law provided the ATO processes their request for an amendment to an assessment and issues an amended assessment.

The Commissioner can amend an ordinary assessment after a limited amendment period expires if, broadly, the taxpayer has raised an issue affecting the assessment before the period expires and the Commissioner is still considering the issue. Therefore, it is proposed to allow the Commissioner to amend an assessment after the two-year period that commences from the date of Royal Assent to the amending Act to allow a taxpayer to take advantage of the retrospective change in circumstances.

This amendment ensures that taxpayers are not unfairly disadvantaged if the ATO is unable to issue an amended assessment, despite the request for amendment being lodged and having been considered, within a two-year period.

Example

Tax Laws Amendment (2010 Measures No. 1) Act 2010 inserted section 716-860 (which is about CGT events which straddle the time that an entity joins or leaves a consolidated group) into the ITAA 1997.

Section 4 of the Tax Laws Amendment (2010 Measures No. 1) Act 2010 provides for the amendment of assessments in respect of section 713-725. It effectively requires that an amended assessment must be made by 3 June 2012, two years after Royal Assent.

Head Co lodges a request for a private ruling on 1 June 2012. The private ruling is for the purpose of amending their assessment in respect of section 713-725.

Section 170A extends the period in which the Commissioner has to amend Head Co's assessment beyond 3 June 2012.

7-1 of Schedule 5

[Schedule 6, item 190]

The amendment, to insert subitem 7(2), ensures that the transitional rules do apply as intended to ensure a trust that was in existence in either (or both) of the 2008-09 and 2009-10 income years and that was a managed investment trust within the meaning of section 12-400 in Schedule 1 to the TAA 1953 immediately before the commencement of Schedule 5 to the Tax Laws Amendment (2010 Measures No. 3) Act 2010 , can make an election under Division 275 of the ITAA 1997.

12-402(3)(e) in Schedule 1

[Schedule 6, items 191 and 192]

The amendment to paragraph 12-402(3)(e) ensures that the paragraph is applying as intended, to include an entity that is recognised under a foreign law as being used for collective investment by pooling the contribution of its members, provided the entity has at least 50 members and the contributing members that have acquired rights to benefits produced by the entity do not have day-to-day control over the entity's operation. A contributing member would include members who have acquired interests in the entity from the initial pooling of contributions or subsequently from one or more other members (for example, in the case of a limited partnership where a partner acquires rights to benefits produced by a limited partnership when taking up the interests of a retiring limited partner).

10(1) (definition of 'self managed superannuation fund')

17(A)(heading)

17(A)(1)

17(a)(2)

17A(3)(c)

17B

[Schedule 6, items 193 to 199]

Amends paragraph 17A(3)(c) so that if the trustee of the self managed superannuation fund is a body corporate, a parent or guardian can be director of the body corporate in place of a member who is a minor and does not have a legal personal representative.

The definition of 'self managed superannuation fund' includes that all members must be a trustee of the fund or a director of the corporate trustee. Paragraph 17A(3)(c) contains an exception where a parent or guardian can be trustee in place of a member who is a minor and does not have a legal personal representative. This amendment corrects an oversight when this paragraph was inserted so that the exception also applies to self managed superannuation funds with a corporate trustee.

This amendment applies from 8 October 1999, because that is when paragraph 17A(3)(c) was inserted.

This amendment clarifies that the prohibition on the remuneration of trustees and directors of a body corporate that is trustee of the fund applies only to duties or services performed in the capacity of trustee or in the capacity of director and in connection with the body corporate's capacity of trustee.

The definition of 'self managed superannuation fund' specifies that trustees or directors of the body corporate, if the trustee is a body corporate, cannot receive remuneration for duties or services performed in relation to the fund.

Section 17B also places certain restrictions on trustee remuneration for non-trustee duties and services. The purpose of these restrictions is to ensure that trustee remuneration is not used by trustees to obtain access to their superannuation benefits before they are eligible.

Trustees and directors may be remunerated for non-trustee duties or services, provided that:

•

they are appropriately qualified and licensed to perform the duties or services;

•

the duties or services are performed as part of a business through which the trustee or director provides the same services to the public; and

•

the remuneration is on an arm's length basis.

Subsection 17B(1), which applies to remuneration of trustees, applies from 8 October 1999 because this is when paragraphs 17A(1)(f) and (2)(c) were inserted.

Subsection 17B(2), which applies to the remuneration of a director of a body corporate that is trustee of the fund, applies to the 2007-08 income year and later income years because those are the income years to which paragraphs 17A(1)(g) and (2)(d) apply.

These amendments ensure that the law operates as it was intended will not have detrimental effects on taxpayers.

210-70(1)(b)(i)

210-70(1)(b)(ii)

210-170(2)(a)

210-170(2)(b)

[Schedule 6, items 200 to 203]

Superannuation Industry (Supervision) Act 1993

6(1)(note)

17A(6)(notes 1 and 2)

29N(1A)

35B(heading)

35D(heading)

229(1)(aa)(i)

229(3) and 231(3)

327 (paragraph (aa) of the definition of 'modifiable provision')

[Schedule 6, items 204 to 211]

Taxation Administration Act 1953

355-65(3) in Schedule 1 (paragraph (a) in the cell in item 8 in the table, column headed 'and the record or disclosure...')

355-65(3) in Schedule 1 (paragraphs (b) and (c) in the cell in item 8 in the table, column headed 'and the record or disclosure...')

[Schedule 6, items 212 and 213]

Corrects references to 'self managed superannuation fund' that incorrectly used a hyphen.

307-350(2)

307-350(2A)

[Schedule 6, items 214 to 216]

Updates a reference to the amended subsection 307-350(2).

These amendments apply on and after 1 July 2007 because that is when subsection 307-350(2) was inserted. These amendments do not have an adverse effect on taxpayers.

775-205(c)(i)

[Schedule 6, item 217]

16-153(2)(c)

[Schedule 6, item 218]

63-10(1)

770-5

770-10(1)

995-1(1)

Income Tax Assessment Act 1936

6(1)

160AD

251R

251S(1)

251T

251U

251V

251VA

251W

251X

251Z

Taxation Administration Act 1953 - Schedule 1

11-1(b)

15-30(b)

45-5(1)(b)

45340

45-375

90-1

Taxation (Interest on Overpayments and Early Payments) Act 1983

3(1)

[Schedule 6, items 219 to 248]

Amendments are made to the ITAA 1997 to ensure that any foreign income tax offset for an income year that remains after being applied against a taxpayer's basic income tax liability can be applied first to reduce any liability for the Medicare levy for the income year and if any remains, to reduce any liability for the Medicare levy surcharge for the income year.

Consequential amendments are also made to the ITAA 1936, the TAA 1953, the ITAA 1997 and the Taxation (Interest on Overpayments and Early Payments) Act 1983 to include definitions of the Medicare levy and the Medicare levy (fringe benefits) surcharge in subsection 6(1) of the ITAA 1936, and to include a definition of the 'Medicare levy' in the ITAA 1997.

The amendments apply to income years starting on or after 1 July 2008 - the start date for the new foreign income tax offset rules - to ensure those rules apply, as intended, from their first application.

45-340 in Schedule 1 (step 4 in the method statement)

45-375 in Schedule 1 (step 4 in the method statement)

[Schedule 6, items 249 to 251]

This amendment will not have a dertrimental effect on taxpayers. It will apply from 1 July 2009, as that was the date from which claims for Family Tax Benefit, including previous year claims could no longer be accepted by the ATO as a result of the Family Assistance and Other Legislation Amendment (2008 Budget and Other Measures) Act 2009 .

109CA

[Schedule 6, items 252 and 253]

The amendment fixes an unintended outcome that the continuity of ownership test applies to payments made after 1 July 2009 and not from the time that the company acquired the dwelling. This situation was inappropriate because the intent of the continuity of ownership was to ensure that the ownership of a dwelling does not change on or after 1 July 2009 rather than before 1 July 2009.

This amendment will enable the law to operate as intended and will not have a detrimental effect on taxpayers.

45C(3)(b)

[Schedule 6, items 254 and 255]

This amendment is to apply to notices of determination, under subsection 45A(2) or 45B(3) of the ITAA 1936, served on or after 1 July 2002. This will ensure that the law operates as it was originally intended.