Tax Laws Amendment (2009 Measures No. 2) Act 2009 (42 of 2009)

Schedule 4   National Urban Water and Desalination Plan

Part 1   Main amendments

Income Tax Assessment Act 1997

10   After Division 396

Insert:

Division 402 Environment protection expenditure

Table of Subdivisions

Guide to Division 402

402-W Urban water tax offset

Guide to Division 402

402-1 What this Division is about

This Division provides for certain tax measures in relation to environment protection.

Subdivision 402-W - Urban water tax offset

Guide to Subdivision 402-W

402-750 What this Subdivision is about

A company may get a refundable tax offset under the National Urban Water and Desalination Plan for a project that the Water Minister certifies as being eligible for the tax offset.

The amount of the urban water tax offset is specified in the certificate.

The urban water tax offset is only available for the income years 2009-10 to 2012-13.

Note: This Subdivision will be repealed on 1 July 2014: see Part 2 of Schedule 4 to the Tax Laws Amendment (2009 Measures No. 2) Act 2009.

Table of sections

402-755 Entitlement to urban water tax offset

402-760 Certificates

402-765 Amount of urban water tax offset

402-770 Revoking certificates

402-775 AAT review

402-780 Guidelines

402-755 Entitlement to urban water tax offset

(1) A company is entitled to a *tax offset for a project for an income year if the *Water Minister certifies under section 402-760 that the project is eligible for the tax offset for the year.

(2) The amount of the *tax offset is the amount specified in the certificate.

Note: The tax offset is subject to the refundable tax offset rules: see section 67-23.

402-760 Certificates

Issuing certificates

(1) The *Water Minister may certify, in writing, to a company that a project is eligible for the urban water tax offset for an income year, if:

(a) the eligible up-front capital costs of the project (within the meaning given by the guidelines made under section 402-780) are:

(i) in the case of a stormwater harvesting project - $4 million or more; or

(ii) in any other case - $30 million or more; and

(b) the other requirements specified in those guidelines are met.

(2) The *Water Minister may only issue certificates for the following income years:

(a) the 2009-10 income year;

(b) the 2010-11 income year;

(c) the 2011-12 income year;

(d) the 2012-13 income year.

(3) In deciding whether to issue a certificate, the *Water Minister must comply with the guidelines made under section 402-780.

(4) If the *Water Minister issues a certificate under this section, he or she must, within 30 days, give a copy to the Commissioner.

Refusal to issue certificates

(5) If the *Water Minister refuses to issue a certificate to a company under this section, he or she must, within 30 days, give written notice of the refusal to the company.

(6) The notice must explain that the company may apply to the *AAT for review of the *Water Minister's refusal to issue a certificate to the company (see section 402-775).

402-765 Amount of urban water tax offset

(1) A certificate issued under section 402-760 must specify the amount of the *tax offset.

(2) In specifying an amount, the *Water Minister must comply with the guidelines made under section 402-780.

(3) The total of the amounts specified in certificates issued to a company for a stormwater harvesting project for one or more income years:

(a) must not exceed 50% of the eligible up-front capital costs of the project (within the meaning given by the guidelines made under section 402-780); and

(b) must not exceed $20 million.

(4) The total of the amounts specified in certificates issued to a company for a project (other than a stormwater harvesting project) for one or more income years:

(a) must not exceed 10% of the eligible up-front capital costs of the project (within the meaning given by the guidelines made under section 402-780); and

(b) must not exceed $100 million.

(5) A certificate issued to a company under section 402-760 must explain that the company may apply to the *AAT for review of the amount specified in the certificate (see section 402-775).

402-770 Revoking certificates

Revoking certificates

(1) The *Water Minister may revoke a certificate issued to a company under section 402-760.

(2) However, the *Water Minister may only do so in the circumstances provided for in the guidelines made under section 402-780.

(3) If the *Water Minister revokes the certificate, he or she must, within 30 days, give to the company and to the Commissioner:

(a) written notice of the revocation; and

(b) written reasons for the decision to revoke the certificate.

(4) The notice given to the company must explain that the company may apply to the *AAT for review of the *Water Minister's revocation of the certificate (see section 402-775).

Revoked certificates taken never to have been issued

(5) If the *Water Minister revokes a certificate under this section, the certificate is taken, for the purposes of this Subdivision, never to have been issued.

(6) Section 170 of the Income Tax Assessment Act 1936 does not prevent the amendment of an assessment for the purpose of giving effect to this Subdivision for an income year if:

(a) a certificate issued to a company is revoked under this section after the time the company lodged its *income tax return for the income year; and

(b) the amendment is made at any time during the period of 4 years starting immediately after the revocation of the certificate.

Note: Section 170 of the Income Tax Assessment Act 1936 specifies the usual period within which assessments may be amended.

Certificates cannot be varied

(7) A certificate issued under section 402-760 cannot be varied.

402-775 AAT review

A company may apply to the *AAT for review of a decision of the *Water Minister under this Subdivision:

(a) to refuse to issue a certificate to the company; or

(b) to specify a particular amount in a certificate issued to the company; or

(c) to revoke a certificate issued to the company.

402-780 Guidelines

(1) The *Water Minister must, by legislative instrument, make guidelines about issuing and revoking certificates under this Subdivision.

(2) Despite subsection 14(2) of the Legislative Instruments Act 2003, the guidelines may make provision in relation to a matter by applying, adopting or incorporating any matter contained in an instrument or other writing as in force or existing from time to time if:

(a) the instrument or other writing is issued by the *Water Minister or by the *Water Department; and

(b) the instrument or other writing, as in force or existing from time to time, is publicly available.

(3) A legislative instrument made under subsection (1) does not take effect before the end of the period in which it could be disallowed in either House of the Parliament.