Tax Laws Amendment (Repeal of Inoperative Provisions) Act 2006 (101 of 2006)
Schedule 2 Consequential amendments relating to Schedule 1 repeals etc.
Part 1 Amendments: general
Taxation Administration Act 1953
970 At the end of Part 5-45 in Schedule 1
Add:
Division 446 - Local governing bodies
Guide to Division
446-1 What this Division is about
A local governing body can resolve that its members are subject to Pay As You Go withholding. This also results in the members being treated as employees for a wide range of other taxation purposes.
Table of sections
Operative provisions
446-5 Requirements for unanimous resolutions by local governing bodies
Operative provisions
446-5 Requirements for unanimous resolutions by local governing bodies
When section applies
(1) This section applies to the following unanimous resolutions made by a *local governing body:
(a) a resolution that the remuneration of members of the body be subject to withholding under Part 2-5 (about Pay As You Go withholding);
(b) a resolution cancelling a resolution covered by paragraph (a).
Note: Item 14 of Schedule 6 to the Tax Laws Amendment (Repeal of Inoperative Provisions) Act 2006 provides that this section also applies to resolutions in force just before the repeal of the predecessor of this section (section 221B of the Income Tax Assessment Act 1936).
When resolution takes effect
(2) The resolution must specify a day as the day on which the resolution takes effect. The specified day must be within the 28-day period beginning on the day after the day on which the resolution was made.
Resolution not affected by change in membership of body
(3) The resolution continues in force in spite of a change in the membership of the *local governing body.
Commissioner to be notified of resolution
(4) The *local governing body must give written notice of the resolution to the Commissioner within 7 days after the resolution was made.
Eligible local governing bodies to be notified in Gazette
(5) If the Commissioner is notified of the resolution, the Commissioner must cause to be published in the Gazette a notice setting out:
(a) the name of the *local governing body; and
(b) the day on which the resolution takes effect.
When resolution applies for purposes of affected provisions
(6) This table sets out when the resolution applies for the purposes of particular provisions whose operation it affects.
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When the resolution applies |
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Item |
If the resolution affects the operation of ... |
the resolution applies to ... |
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1 |
section 12-45 |
amounts that become payable after the day on which the resolution takes effect |
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2 |
Subdivision AB of Division 17 of Part III of the Income Tax Assessment Act 1936 (about tax offset for lump sum payments in arrears) |
*ordinary income *derived, and amounts that become *statutory income, after the day on which the resolution takes effect |
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3 |
sections 26-30 and 34-5 of the Income Tax Assessment Act 1997 (about deductions for relatives' travel expenses and non-compulsory uniforms) |
expenditure incurred after the day on which the resolution takes effect |
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4 |
Divisions 28 and 900 of the Income Tax Assessment Act 1997 (about car expenses and substantiation) |
expenses incurred after the day on which the resolution takes effect |
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5 |
section 130-90 of the Income Tax Assessment Act 1997 (about capital gains tax and employee share trusts) |
*shares and rights to which a beneficiary becomes absolutely entitled after the day on which the resolution takes effect |
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6 |
provisions of the Fringe Benefits Tax Assessment Act 1986 relating to assessments |
(a) in the case of a loan benefit within the meaning of the Fringe Benefits Tax Assessment Act 1986 - a loan made after the day on which the resolution takes effect; (b) in the case of a housing benefit within the meaning of that Act - the subsistence, after the day on which the resolution takes effect, of the housing right concerned; (c) in the case of a residual benefit within the meaning of that Act that is *provided during a period - so much of the period as occurs after the day on which the resolution takes effect; (d) any other *fringe benefit provided after the day on which the resolution takes effect. |
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7 |
Division 4 of Part II of the Income Tax Rates Act 1986 (about pro-rating the tax-free threshold) |
amounts that become assessable income after the day on which the resolution takes effect |
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8 |
the provisions of the Child Support (Registration and Collection) Act 1988 |
*ordinary income *derived, and amounts that become *statutory income, after the day on which the resolution takes effect |
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9 |
section 9-20 of the A New Tax System (Goods and Services Tax) Act 1999 (about the meaning of enterprise) |
activities, or series of activities, done after the day on which the resolution takes effect |
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10 |
Division 111 of the A New Tax System (Goods and Services Tax) Act 1999 (about reimbursement of employees) |
reimbursements made after the day on which the resolution takes effect |