House of Representatives

Explanatory Memorandum

(Circulated by the authority of the Treasurer, the Hon J. B. Hockey MP)

Chapter 6 - Miscellaneous amendments

Outline of chapter

6.1 Schedule 6 to this Bill makes a number of miscellaneous amendments to the taxation, superannuation and other laws. These amendments are part of the Government's commitment to the care and maintenance of the taxation and superannuation systems.

6.2 These amendments include style and formatting changes, the repeal of redundant provisions, the correction of anomalous outcomes and corrections to previous amending Acts.

Context of amendments

6.3 Miscellaneous amendments to the taxation and superannuation laws such as those contained in Schedule 6 are periodically made to remove anomalies and correct unintended outcomes. Progressing such amendments gives priority to the care and maintenance of the tax system, a process supported by a 2008 recommendation from the Tax Design Review Panel.

6.4 Industry input is collected through the Tax Issues Entry System (TIES). Part 1 of Schedule 6 addresses three TIES issues:

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Ensuring that life insurance companies are not inappropriately liable for franking deficit tax (TIES issue 0011/2013);

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Correcting inconsistent wording in a provision of the Fringe Benefits Tax Assessment Act 1986 that defines in-house residual fringe benefits (TIES issue 0004/2013); and

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Correcting a diagram intended to provide guidance on when an entity is required to, or may, register for goods and services tax (GST) (TIES issue 0010/2013).

Summary of new law

6.5 These miscellaneous amendments address technical deficiencies and legislative uncertainties within various taxation, superannuation and other provisions.

6.6 Schedule 6 contains the following Parts:

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Part 1: General amendments

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Part 2: Consequential amendments relating to the Public Governance, Performance and Accountability Act 2013.

Detailed explanation of new law

Part 1: General amendments

Updating section references in the A New Tax System (Goods and Services Tax) Act 1999

6.7 Section 23-1 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) includes a diagram showing entities when they:

•

are required to be registered for GST; and

•

may be registered for GST.

6.8 Before the amendments made by this Schedule, that diagram referred to Division 147 of the GST Act. Division 147 was repealed by the Tax Laws Amendment (2009) Measures No. 5) Act 2009 and replaced with Division 58, but the diagram was not updated to reflect that change. Accordingly, this amendment replaces the reference to Division 147 in the diagram with a reference to Division 58. This addresses TIES issue 0010/2013. [Schedule 6, item 1, section 23-1 of the A New Tax System (Goods and Services Tax) Act 1999]

6.9 Section 134-10 of the GST Act sets out rules to recover an amount of an input tax credit that an entity received in respect of an acquisition where the entity receives a subsequent payment in respect of the acquisition from a third party (for example, a rebate paid by the manufacturer of a product to the final purchaser). Before the amendments, paragraph 134-10(1)(e) provides that no such adjustment is required where the payment is considered to be for a separate supply from you.

6.10 The terminology in paragraph 134-10(1)(e) was inconsistent with that used elsewhere in the GST Act, where supplies are not described as being 'from you'; rather, they are described as being supplies 'you make'. This Schedule standardises the terminology in paragraph 134-10(1)(e) so it refers to a supply 'you make' instead of a supply 'from you'. [Schedule 6, item 2, paragraph 134-10(1)(e) of GST Act]

Misdescribed amendments to the Income Tax Assessment Act 1997

6.11 The Charities Act 2013 extended charitable status to ancillary funds where they contributed to an entity that would be charitable if it were not a government entity. This enables such entities to retain their charitable status and therefore removed the need for a specific income tax exemption for public and private ancillary funds.

6.12 The Charities (Consequential Amendments and Transitional Provisions) Act 2013 made consequential amendments to the Income Tax Assessment Act 1997 (ITAA 1997) to remove this specific tax exemption. One of those consequential amendments was intended to change the words 'charitable institutions and trust funds for charitable purposes' to 'charities' in section 50-100 of the ITAA 1997. A spelling error in the Charities (Consequential Amendments and Transitional Provisions) Act 2013 meant that the amendment was misdescribed, i.e. the text it sought to replace was not identical to the text it was actually replacing. This Schedule corrects the spelling error. [Schedule 6, item 3, item 31 of Schedule 1 to the Charities (Consequential Amendments and Transitional Provisions) Act 2013]

6.13 To ensure the effectiveness of this amendment, it commences immediately following the commencement of the relevant provisions in the Charities (Consequential Amendments and Transitional Provisions) Act 2013.

6.14 The Minerals Resource Rent Tax (Consequential Amendments) and Transitional Provisions Act 2012 made consequential amendments following the introduction of the Minerals Resource Rent Tax. The Minerals Resource Rent Tax has since been repealed by the Minerals Resource Rent Tax Repeal and Other Measures Act 2014, but not all of the minor consequential changes were reversed.

6.15 One of the consequential amendments sought to change the words '*mining operations' in subparagraph 40-80(1)(c)(i) of the ITAA 1997 to 'mining and quarrying operations'. However, that amendment was misdescribed because that subparagraph of the ITAA1997 did not include an asterisk before the words 'mining operations.

6.16 The amendment was therefore not reversed when the Minerals Resource Rent Tax was repealed.

6.17 This Schedule removes the asterisk in the amending Act. [Schedule 6, item 41, item 16 of Schedule 3 to the Minerals Resource Rent Tax (Consequential Amendments and Transitional Provisions) Act 2012]

6.18 To ensure the effectiveness of this amendment, it commences immediately following the commencement of the relevant provisions in the Minerals Resource Rent Tax (Consequential Amendments) and Transitional Provisions Act 2012.

Inconsistent wording in the Fringe Benefits Tax Assessment Act 1986

6.19 The Fringe Benefits Tax Assessment Act 1986 (FBTAA) provides for the taxation of various fringe benefits. Different rules apply to different types of fringe benefit. One type of benefit is in-house residual fringe benefits.

6.20 A residual fringe benefit is a fringe benefit that is not one of the types of fringe benefit with its own specific rules (e.g. car fringe benefits) (sections 45 and 136(1) FBTAA). A residual fringe benefit can be an in-house residual fringe benefit in two cases (subsection 136(1) FBTAA, definition of in-house residual fringe benefit).

6.21 The first case is where the benefit is provided by the employer or an associate of the employer, and the provider carried on a business providing the same or similar benefits to outsiders.

6.22 The second case is where the benefit is provided by someone other than the employer or an associate of the employer, but the provider purchased the benefit from the employer or an associate of the employer (the seller), and both the provider and the seller carried on a business providing the same or similar property to outsiders. This provision prevents employers setting up artificial arrangements to avoid falling within the first case.

6.23 The use of the word 'property' instead of 'benefits' in the second case was an error, and created inconsistency between the two cases. This amendment corrects the error by replacing 'property' with 'benefits'. This addresses TIES issue 0004/2013. [Schedule 6, item 4, subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986]

Consequential amendments relating to the standardisation of the definition of Australia across the tax law

6.24 Schedule 4 to the Treasury Legislation Amendment (Repeal Day) Act 2015 made various amendments to the tax law as part of rewriting and standardising the definition of 'Australia' for income tax purposes.

6.25 GST and other indirect taxes only operate in a subset of what is included in the standardised definition of 'Australia'. Therefore, the definition of 'Australia' for GST and other indirect taxes was relabelled as the 'indirect tax zone'. This change did not entail any change in scope for indirect tax purposes.

6.26 This Schedule makes consequential amendments to the Fuel Tax Act 2006 to replace 'Australia' with 'indirect tax zone' where appropriate. [Schedule 6, items 5 to 11, sections 3-5, 41-5, 41-10, 42-5, 43-7 and 110-5 of the Fuel Tax Act 2006]

6.27 To ensure alignment with the application of the new standardised definition of Australia in other areas of tax law, these amendments to the Fuel Tax Act 2006 apply to taxable fuel acquired, manufactured or imported on or after 1 July 2015. [Schedule 6, item 12]

Style changes to the ITAA 1997

6.28 Section 13-1 of the ITAA 1997 sets out a list of tax offsets, and directs readers to the provision that allows each offset. The formatting of two of the items in the list, relating to farm household allowance, is inconsistent with other items in the list. This Schedule corrects the formatting. [Schedule 6, items 13 and 14, section 13-1 of the Income Tax Assessment Act 1997]

6.29 The ITAA 1997 uses asterisks to indicate the use of a defined term (section 2-10 ITAA 1997). Where a definition only applies in certain contexts, an asterisk is generally only used where the defined term is being used in the context in which the definition applies.

6.30 Carrying on is defined in subsection 995-1(1). That definition applies when an entity is carrying on an enterprise.

6.31 The ITAA 1997 frequently uses the words 'carrying on' in the phrase 'carrying on a business'. Although there is considerable overlap between an enterprise and a business, they do not have the same meaning under the ITAA 1997. Therefore, many instances of this phrase do not have an asterisk before the words 'carrying on'.

6.32 However, an asterisk does precede the term 'carrying on' when it is used in the phrase 'carrying on a business' in some instances. This creates inconsistencies in drafting practice within the ITAA 1997.

6.33 The same issue arises with the phrases 'carry on', 'carries on' and 'carried on'.

6.34 This Schedule amends various provisions of the ITAA 1997 to standardise the use of asterisks for the term 'carrying on' and its derivatives. [Schedule 6, items 15 to 26, 32 to 34 and 36, sections 25-110, 26-47, 30-242, 35-5, 35-10, 40-880, 41-20, 316-65, 415-15, 415-20 and 995-1 of the ITAA 1997]

6.35 Defined terms are also not asterisked in non-operative or guide material (subsection 2-15(2) ITAA 1997).

6.36 Section 104-5 of the ITAA 1997 includes a table summarising CGT events. CGT events are events for which you can make a capital gain or loss. This table includes a summary of CGT event K1 that uses the terms Kyoto unit and Australian carbon credit unit, which are defined in subsection 995-1(1) of the ITAA 1997. These terms are marked with an asterisk in the table. This is inconsistent with normal drafting practice, and other defined terms used in the table are not asterisked.

6.37 The same issue arose in table item 18A of the table included in section 112-97, which included the term 'Kyoto unit' with an asterisk. That table sets out cost base modifications outside Parts 3-1 and 3-3 of the ITAA 1997.

6.38 This Schedule removes these asterisks to provide consistency of drafting. [Schedule 6, items 29 and 30, sections 104-5 and 112-97 of the ITAA 1997]

6.39 Subsection 995-1(1) of the ITAA 1997 provides that "available frankable profits has the meaning given by section 215-20 and affected by subsection 215-5(1)". This Schedule amends that definition to remove the grammatical error by replacing 'give' with 'given'. [Schedule 6, item 35, subsection 995-1(1) of the ITAA 1997]

Clarification of the objects of the taxation of employee share schemes

6.40 The rules for the taxation of employee share schemes are contained in Division 83A of the ITAA 1997. Where employees or their associates receive discounts on shares or rights to acquire beneficial interests in shares under an employee share scheme (ESS interests), those discounts are generally included in their assessable income, and so are liable to income tax.

6.41 In some cases, the inclusion of the discounts in assessable income is deferred, and so is the liability to pay tax.

6.42 Division 83A is intended to provide that these deferrals are not unduly brought to an end just because a company is going through a takeover or restructure, including a demerger. The objects clause in subsection 83A-130(1) sets out where it is intended that the employee share scheme will continue to apply where a takeover or restructure occurs.

6.43 This objects clause does not correctly describe restructures which are demergers, because the CGT demerger rules require no change in the ownership of the old company (section 125-70(2) of the ITAA97 - referred to as the 'head entity'). In demergers, the change in ownership instead occurs in the demerger subsidiary.

6.44 This Schedule amends subparagraph 83A-130(1)(a)(ii) of the ITAA 1997 to provide that the object of section 83A-130 is to allow Division 83A to continue to apply when the whole or partial replacement of ESS interests is a result of a change (the restructure) in the ownership (including the structure of the ownership) of either the old company or a demerger subsidiary of the old company. [Schedule 6, item 27, subparagraph 83A-130(1)(a)(ii) of the ITAA 1997]

6.45 To ensure subsection 83A-130(1) operates as intended, this amendment applies in relation to ESS interests acquired on or after 1 July 2009, the initial application date of Division 83A. [Schedule 6, item 28]

Incorrect references relating to franking debits and life insurance companies

6.46 Subsection 205-30(1) of the ITAA 1997 includes a table (the general table) setting out circumstances when a debit arises in the franking account of an entity, and the amount of debit that will arise.

6.47 Subsection 219-30(1) of the ITAA 1997 provides that the general table also applies to life insurance companies, except items 2 and 3. Subsection 219-30(2) provides a different table (the life insurance table) setting out circumstances where franking debits arise for life insurance companies, and the amount of debit that will arise.

6.48 Items 2 and 3 of the general table were excluded from applying to life insurance companies because the circumstances in which they applied were supposed to be identical to the circumstances in item 2 and 3 of the life insurance table, and the life insurance table was to take priority in those circumstances. However, it is instead items 2 and 2A of the general table which are identical to items 2 and 3 of the life insurance table. This means that item 3 of the general table has incorrectly been stopped from applying to life insurance companies, and item 2A of the general table has been incorrectly applying instead.

6.49 This Schedule amends subsection 219-30(1) to correct this error and provide that the table in section 205-30 (except items 2 and 2A) applies to a life insurance company in the same way as it applies to any other company. This addresses TIES issue 0011/2013. [Schedule 6, item 31, subsections 205-30(1) and 219-30(1) of the ITAA 1997]

6.50 To ensure the effectiveness of this amendment, it commences immediately following the commencement of the provision that inserted the error.

Standardising the definition of taxable dealing in relation to wine across the tax law

6.51 Subsection 995-1(1) of the ITAA 1997 provides that wine taxable dealing means a taxable dealing (within the meaning of section 33-1 of the A New Tax System (Wine Equalisation Tax) Act 1999).

6.52 Section 33-1 of the A New Tax System (Wine Equalisation Tax) Act 1999 provides that taxable dealing means an assessable dealing that happens on or after 1 July 2000 for which no exemption is available under Division 7.

6.53 The existence of two different terms in the tax law creates unnecessary complexity. Therefore, this Schedule amends the ITAA 1997 to change the defined term from 'wine taxable dealing' to 'taxable dealing'. The term taxable dealing will only refer to a taxable dealing within the meaning of section 33-1 of the A New Tax System (Wine Equalisation Tax) Act 1999) when it is used in relation to wine.

6.54 As the defined terms in subsection 995-1(1) also apply to Schedule 1 to the TAA 1953, this Schedule also replaces the term 'wine taxable dealing' with 'taxable dealing in relation to wine' where it appears in Schedule 1 to the TAA 1953. [Schedule 6, items 37 to 38, 55 and 56, section 995-1 of the ITAA 1997 and sections 111-60 and 382-5 of Schedule 1 to the TAA 1953]

Renumbering the Income Tax Rates Act 1986

6.55 The Income Tax Rates Amendment (Research and Development) Act 2011 and the Income Tax Rates Amendment (Temporary Flood and Cyclone Reconstruction Levy) Act 2011 separately inserted a new section 12B into the Income Tax Rates Act 1986. As a result, there are 2 sections numbered 12B in the Income Tax Rates Act 1986. One specifies to the rate of income tax payable for recoupments of research and development activities and the other specifies the rate of the temporary flood and cyclone reconstruction levy.

6.56 The Income Tax Rates Amendment (Temporary Flood and Cyclone Reconstruction Levy) Act 2011 provides for section 12B to be repealed on 1 July 2016. However, given there are two sections 12B, this will not be effective because it is not clear which section 12B the legislation should repeal.

6.57 To ensure the correct section is repealed on 1 July 2016, and to remove the confusion created by having two identical section numbers, this Schedule renumbers the section specifying the rate of the temporary flood and cyclone reconstruction levy to section 12C and amends the Income Tax Rates Amendment (Temporary Flood and Cyclone Reconstruction Levy) Act 2011 to provide that section 12C will be repealed on 1 July 2016. [Schedule 6, items 39 and 40, section 12B of the Income Tax Rates Act 1986]

Removing doubt as to the constitutional basis of the Product Stewardship (Oil) Act 2000

6.58 The Product Stewardship (Oil) Act 2000 (PSO Act) was enacted on the basis that it is supported by the Commonwealth's legislative and executive powers under the Constitution. Nevertheless, this Schedule inserts specific saving rules into the PSO Act to safeguard its provisions in the event of an adverse constitutional challenge.

6.59 The savings rules rely on the Commonwealth's external affairs power in paragraph 51(xxix) of the Constitution and the taxation power in paragraph 51(ii) of the Constitution. This is done by providing that:

•

the PSO Act also has the effect it would have if its operation in relation to product stewardship (oil) benefits were expressly confined to an operation limited to product stewardship (oil) benefits in relation to external affairs; and

•

the PSO Act also has the effect it would have if its operation in relation to product stewardship (oil) benefits were expressly confined to an operation limited to product stewardship (oil) benefits in relation to taxation. [Schedule 6, item 42, section 4A of the Product Stewardship (Oil) Act 2000]

Updating terminology in the Superannuation (Government Co-contribution for Low Income Earners) Act 2003

6.60 The Superannuation (Government Co-contribution for Low Income Earners) Act 2003 provides for a government co-contribution to be paid into a person's superannuation fund or retirement savings account where certain criteria are met. Sections 16 and 20 of that Act require trustees of complying superannuation funds and providers of retirement savings accounts to repay government co-contributions paid to them where the trustee or the provider has not credited the co-contribution to the person's account by the end of the 28th day after the day on which the co-contribution was paid to the trustee or provider. Paragraphs 16(1)(d) and 20(1)(d) require those trustees or providers to give the Commissioner a statement in the approved form in relation to the co-contribution.

6.61 The requirement to provide a statement in the approved form was inserted by the Treasury Legislation Amendment (Repeal Day) Act 2015. Previously, the requirement was to provide prescribed information.

6.62 However, the Treasury Legislation Amendment (Repeal Day) Act 2015 did not update the terminology used in subsections 16(3) and 20(3) of the Superannuation (Government Co-contribution for Low Income Earners) Act 2003, which set out penalties where a taxpayer does not provide prescribed information under the respective sections.

6.63 To ensure consistency, this Schedule replaces the references to prescribed information in subsections 16(3) and 20(3) with references to statements in the approved form. It also inserts commas into paragraphs 16(1)(d) and 20(1)(d) for ease of reading. [Schedule 6, items 43 to 46, sections 16 and 20 of the Superannuation (Government Co-contribution for Low Income Earners) Act 2003]

Grammatical errors in the Tax Agents Services Act 2009

6.64 Section 20-5 of the Tax Agent Services Act 2009 provides for the conditions that a partnership needs to meet to be eligible for registration as a registered tax agent, BAS agent or tax (financial) adviser.

6.65 The requirements relating to tax (financial) advisers were added into the Act by the Tax Laws Amendment (2013 Measures No. 3) Act 2013. The amendments adding those requirements for tax (financial) advice services contained an error, which means that the end of subparagraphs 20-5(2)(c)(ii) and 20-5(3)(d)(ii) read "; and; or" instead of "; or", and subparagraphs 20-5(2)(c)(iii) and 20-5(2)(d)(iii) end in a full stop instead of "; and". This Schedule fixes those errors. [Schedule 6, items 47 to 50, section 20-5 of the Tax Agent Services Act 2009]

6.66 To ensure the effectiveness of these amendments, they commence immediately following the commencement of the provision that inserted the error.

Grammatical error in Schedule 1 to the TAA 1953

6.67 Subsection 12-390(4) of Schedule 1 to the TAA 1953 requires certain entities to withhold an amount from certain payments it receives on behalf of a foreign resident (the recipient) if the payment, or part of it, was covered by a notice or information under section 12-395. A note under this subsection informs the reader that if the recipient [is] not a foreign resident, the entity must provide a notice or information about the payment under section 12-395. This note is missing the word 'is'.

6.68 This Schedule inserts the missing word. [Schedule 6, item 51, section 12-390 of Schedule 1 to the TAA 1953]

Repealing redundant address for service provision

6.69 Section 105-140 in Schedule 1 to the TAA 1953 provides address for service rules for the purposes of all indirect tax laws. However, Part 2A of the Taxation Administration Regulations 1976, supported by section 388-50 in Schedule 1 to the TAA 1953 (which allows the Commissioner to require an entity to provide such an address when providing an approved form), will provide preferred address for service rules for all taxation laws, including indirect tax laws, from

1 July 2015. This is because of recent amendments made by the Treasury Laws Amendment (2015 Measures No. 1) Regulations 2015. This Schedule repeals section 105-140 because it will be redundant from

1 July 2015. [Schedule 6, items 52 and 53, sections 105-1 and 105-140 of Schedule 1 to the TAA 1953]

6.70 To align with the application of the changes to the general address for service rules made by the Treasury Laws Amendment (2015 Measures No. 1) Regulations 2015, these amendments apply on or after 1 July 2015. [Schedule 6, item 54]

Revoking endorsements for tax concessions

6.71 This Schedule amends section 426-55 of Schedule 1 to the TAA 1953 to ensure that the Commissioner can revoke endorsement for access to certain tax concessions in relation to past periods of non-compliance regardless of whether such non-compliance is present at the time a decision to revoke endorsement happens. [Schedule 6, items 57 and 58, section 426-55 of Schedule 1 to the TAA 1953]

6.72 Section 426-55 of Schedule 1 to the TAA 1953 gives the Commissioner the power to revoke the endorsement of an entity to access a tax concession (e.g. a charity endorsed to access an income tax exemption) if certain circumstances are present. The primary circumstance is where the entity is not entitled to be endorsed because of non-complying behaviour. The revocation of endorsement happens from the day specified by the Commissioner. The objective of the endorsement regime is to ensure that before an entity accesses certain tax concessions, there is an assessment of the entity's entitlement by the Commissioner. The regime is then structured in a manner consistent with the self-assessment regime in that an entity has an obligation to advise the Commissioner if they are no longer entitled to endorsement so that the Commissioner can take necessary action to revoke endorsement. Similarly, the Commissioner may by way of audit, identify an entity was not entitled to endorsement in relation to a prior period, and can revoke endorsement retrospectively.

6.73 In the case of Cancer and Bowel Research Association Inc v Commissioner of Taxation, the Federal Court of Australia identified a defect in the revocation provisions in that the Commissioner would not be able to revoke endorsement in a situation in which he or she has identified (through audit) that the entity is no longer entitled to be endorsed but at the time the Commissioner makes a decision to revoke endorsement, the entity changes its behaviour to be entitled to endorsement on that day.

6.74 The consequence of this defect is that a non-complying entity can frustrate the Commissioner's actions to revoke endorsement (because of non-complying behaviour over an extended period), by changing its behaviour when it gets notice of an audit or compliance action.

6.75 The amendments correct the defect and ensure the Commissioner can take appropriate action in relation to past periods of non-compliance, identified by way of audit, by revoking endorsement in relation to those periods of non-compliance where such action is appropriate given the circumstances of the taxpayer concerned.

6.76 The amendments made by Part 2 apply to decisions to revoke endorsements where the decision is made on or after the day this Bill receives Royal Assent (regardless of when the endorsement took effect). [Schedule 6, item 59]

Repeal redundant provisions in the Taxation (Deficit Reduction) Act (No. 3) 1993

6.77 Division 4 of Part 2 of the Taxation (Deficit Reduction) Act (No. 3) 1993 provided for a change in income tax rates. This Division was to commence in accordance with regulations made for that purpose (subsection 2(3) of the Taxation (Deficit Reduction) Act (No. 3) 1993). No such regulations have been made, and none are intended. This Schedule repeals subsection 2(3) and Division 4 of Part 2 of the Taxation (Deficit Reduction) Act (No. 3) 1993 because they are redundant. [Schedule 6, items 60 to 61, sections 2 and 7 of the Taxation (Deficit Reduction) Act (No. 3) 1993]

Updating a section reference regarding general interest charge

6.78 Section 12A of the Taxation (Interest on Overpayments and Early Payments) Act 1983 provides that the Commissioner of Taxation may have to pay interest where the Commissioner remits or refunds certain amounts paid by a person more than 30 days after the day on which the person requested the remission or refund.

6.79 This includes where the Commissioner remits the whole or part of an amount paid as general interest charge under section 163AA and subsection 204(3) of the Income Tax Assessment Act 1936. Section 163AA imposes general interest charge on an unpaid late lodgement penalty. Subsection 204(3) imposed general interest charge on an unpaid amount of tax or shortfall interest charge.

6.80 Subsection 204(3) was repealed by the Tax Laws Amendment (Transfer of Provisions) Act 2010, and rewritten as section 5-15 of the ITAA 1997.

6.81 This Schedule replaces the reference to subsection 204(3) of the Income Tax Assessment Act 1936 with a reference to section 5-15 of the ITAA 1997. [Schedule 6, item 62, section 12A of the Taxation (Interest on Overpayments and Early Payments) Act 1983]

6.82 To align with the repeal of subsection 204(3) of the Income Tax Assessment Act 1936, this amendment applies from 1 July 2010. [Schedule 6, item 63]

Clarifying the application date of previous amendments to the tax law

6.83 Part 2 of Schedule 2 to the Treasury Legislation Amendment (Repeal Day) Act 2015 inserted Division 393 into Schedule 1 to the TAA 1953. This Division provides for investment bodies to report investment information to the Commissioner of Taxation. Item 73 contains an application provision intended to provide that the amendments made by Part 2 (i.e. the new Division 393) apply in relation to quarters or financial years beginning on or after 1 July 2015. However, due to an error, it implies that all of the amendments made by Schedule 2 may apply from that date. This application provision was not intended to apply to the amendments made by the other Parts of Schedule 2 (Parts 1, 3 and 4).

6.84 This Schedule clarifies that the application provision in

item 73 of Part 2 of Schedule 2 to the Treasury Legislation Amendment (Repeal Day) Act 2015 has only operated and will only operate with respect to that Part. [Schedule 6, item 64, item 73 of Schedule 2 to the Treasury Legislation Amendment (Repeal Day) Act 2015]

Part 2: Consequential amendments relating to the Public Governance, Performance and Accountability Act 2013

6.85 The Public Governance, Performance and Accountability Act 2013 replaced the Financial Management and Accountability Act 1997 (FMA Act) and the Commonwealth Authorities and Companies Act 1997 (CAC Act) as the primary financial legislation of the Commonwealth from 1 July 2014.

6.86 As a result, consequential amendments are required to update legislative references to either the FMA Act or the CAC Act. This Schedule amends the Australian Charities and Not-for-profits Commission Act 2012 to replace references to the FMA and CAC Acts with the equivalent provisions in the Public Governance, Performance and Accountability Act 2013. [Schedule 6, items 65 to 81, sections 110-15, 115-30, 115-50, 125-5, 125-10, 125-15, 135-15, 140-20, 145-5, 175-70 and 300-5 of the Australian Charities and Not-for-profits Commission Act 2012]

6.87 To ensure the effectiveness of these amendments, they commence immediately following the commencement of section 6 of the Public Governance, Performance and Accountability Act 2013.

STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Schedule 6: Miscellaneous Amendments

6.88 This Schedule is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview

6.89 Schedule 6 to this Bill makes a number of miscellaneous amendments to the taxation, superannuation and other laws. These amendments are part of the Government's commitment to the care and maintenance of the taxation and superannuation systems.

6.90 These amendments include style and formatting changes, the repeal of redundant provisions, the correction of anomalous outcomes and corrections to previous amending Acts.

Human rights implications

6.91 These amendments make a number of minor and machinery changes to the taxation and superannuation provisions to ensure the provisions are consistent with their original policy intent. As such, this Schedule does not engage any of the applicable rights or freedoms.

Conclusion

6.92 This Schedule is compatible with human rights as it does not raise any human rights issues.