Miscellaneous

301-125 Unclaimed money payments by the Commissioner

For the purposes of this Subdivision, treat a *superannuation lump sum paid by the Commissioner under subsection 17(2) or section 20H of the Superannuation (Unclaimed Money and Lost Members) Act 1999 as if it were paid from a *superannuation plan.

44   Paragraph 306-15(1)(d)

Omit “for the *superannuation plan”, substitute “, for the superannuation plan from which the benefit is paid,”.

45   At the end of subsection 306-15(1)

Add:

Note: To work out your untaxed plan cap amount in relation to an unclaimed money payment from the Commissioner, see subsection 307-350(2B).

46   Subsection 307-5(1) (table item 5, column 2)

Omit “section 17 or 18”, substitute “subsection 17(1) or (2), section 18”.

47   Subsection 307-5(1) (table item 5, column 3)

Omit “section 17, 18”, substitute “subsection 17(1) or (2) or section 18”.

48   Paragraph 307-120(2)(e)

After “payment under”, insert “subsection 17(2) or”.

49   Section 307-142

Repeal the section, substitute:

307-142 Components of certain unclaimed money payments

Preliminary

(1) This section explains how to work out the *tax free component, and the *taxable component, of a *superannuation benefit that is a payment by the Commissioner under subsection 17(2) or section 20H of the Superannuation (Unclaimed Money and Lost Members) Act 1999 in respect of a person.

Tax free component

(2) Work out the *tax free component as follows:

Method statement

Step 1. Work out the amount (the unclaimed amount ) (or amounts), set out in column 1 of the table in subsection (3), to which the *superannuation benefit is attributable.

Note: A payment made under subsection 17(2) of the Superannuation (Unclaimed Money and Lost Members) Act 1999 is attributable to a single unclaimed amount set out in item 1 or 2 of the table.

A payment under section 20H of that Act may be attributable to more than one unclaimed amount.

Step 2. Assume that the unclaimed amount (or each unclaimed amount), instead of being paid to the Commissioner, had been paid to the person as the payment (the claimed equivalent ) set out in column 2 of the table.

Step 3. The *tax free component of the *superannuation benefit consists of so much of the superannuation benefit as is attributable to the amount set out in column 3 of the table for the claimed equivalent (or as is attributable to the amounts set out in that column for the claimed equivalents).

(3) This is the table mentioned in subsection (2):

Note 1: Section 65AA of the Superannuation Guarantee (Administration) Act 1992 requires certain shortfall components to betreated as amounts paid to the Commissioner under subsection 20F(1) of the Superannuation (Unclaimed Money and Lost Members) Act 1999.

The effect of excluding such shortfall components from item 3 of the table in this subsection is that the taxable component includes so much of the superannuation benefit as is attributable to such a shortfall component.

Note 2: The table in this subsection does not cover interest paid by the Commissioner under subsection 20H(2A) of the Superannuation (Unclaimed Money and Lost Members) Act 1999.

The effect of this is that the taxable component includes so much of the superannuation benefit as is attributable to such interest.

Taxable component

(4) The *taxable component is so much (if any) of the *superannuation benefit as is not the *tax free component.

50   At the end of subsection 307-145(1)

Add:

Note: This section does not apply to an unclaimed money payment.

51   Section 307-300

Repeal the section, substitute:

307-300 Certain unclaimed money payments

Preliminary

(1) This section explains how to work out the *element taxed in the fund, and the *element untaxed in the fund, of the *taxable component of a *superannuation benefit that is a payment by the Commissioner under subsection 17(2) or section 20H of the Superannuation (Unclaimed Money and Lost Members) Act 1999.

Element taxed in the fund

(2) Work out the element taxed in the fund as follows:

Method statement

Step 1. Work out the amount (the unclaimed amount ) (or amounts), set out in column 1 of the table in subsection (3), to which the *taxable component is attributable.

Note: A payment made under subsection 17(2) of the Superannuation (Unclaimed Money and Lost Members) Act 1999 is attributable to a single unclaimed amount set out in item 1 or 2 of the table.

A payment under section 20H of that Act may be attributable to more than one unclaimed amount.

Step 2. Assume that the unclaimed amount (or each unclaimed amount), instead of being paid to the Commissioner, had been paid to the person as the payment (the claimed equivalent ) set out in column 2 of the table.

Step 3. The element taxed in the fund of the *taxable component consists of so much of the taxable component as is attributable to the amount set out in column 3 of the table for the claimed equivalent (or as is attributable to the amounts set out in that column for the claimed equivalents).

(3) This is the table mentioned in subsection (2):

Note 1: Section 65AA of the Superannuation Guarantee (Administration) Act 1992 requires certain shortfall components to be treated as amounts paid to the Commissioner under subsection 20F(1) of the Superannuation (Unclaimed Money and Lost Members) Act 1999.

The effect of excluding such shortfall components from item 3 of the table in this subsection is that the element untaxed in the fund includes so much of the superannuation benefit as is attributable to such a shortfall component.

Note 2: The table in this subsection does not cover interest paid by the Commissioner under subsection 20H(2A) of the Superannuation (Unclaimed Money and Lost Members) Act 1999.

The effect of this is that theelement untaxed in the fund of the taxable component includes so much of the superannuation benefit as is attributable to such interest.

Element untaxed in the fund

(4) The element untaxed in the fund of the *taxable component is so much (if any) of the taxable component as is not the element taxed in the fund.

52   After subsection 307-350(2A)

Insert:

(2B) For the purposes of the application of this section in relation to *superannuation lump sums paid by the Commissioner under subsection 17(2) and section 20H of the Superannuation (Unclaimed Money and Lost Members) Act 1999, treat all such lump sums as if they were paid from a single *superannuation plan.

Small Superannuation Accounts Act 1995

53   Section 4

Insert:

leave Australia has the same meaning as in the Migration Act 1958.

54   Section 14 (simplified outline)

Omit:

Permanent departure from Australia

• The balance of the amount standing to the credit of an individual’s account may be debited from the Special Account if:

(a) the individual was the holder of an eligible temporary residents visa that has expired or been cancelled; and

(b) the individual has permanently departed from Australia.

substitute:

Former temporary resident

• The balance of the amount standing to the credit of an individual’s account may be debited from the Special Account if the individual is a former temporary resident.

55   Section 62 (simplified outline)

Omit:

• The balance of an individual’s account may be withdrawn if:

(a) the individual was the holder of an eligible temporary residents visa that has expired or been cancelled; and

(b) the individual has permanently departed from Australia.

substitute:

• The balance of an individual’s account may be withdrawn if the individual is a former temporary resident.

56   Paragraph 67A(1)(b)

Repeal the paragraph, substitute:

(b) the individual satisfies the Commissioner of Taxation that before, on or after the commencement of this section, the individual:

(i) was, under the Migration Act 1958, the holder of a temporary visa that has ceased to be in effect; and

(ii) left Australia after starting to be the holder of the visa (whether the visa ceased to be in effect before, when or after the person left); and

(c) the individual satisfies the Commissioner of Taxation that the individual:

(i) is not, under the Migration Act 1958, the holder of a permanent visa; and

(ii) is neither an Australian citizen nor a New Zealand citizen.

Note: The heading to section 67A is altered by omitting “ permanent departure from Australia ” and substituting “ former temporary resident ”.

57   Subsection 67A(6)

Repeal the subsection.

Superannuation (Government Co-contribution for Low Income Earners) Act 2003

58   Paragraph 6(1)(f)

Repeal the paragraph, substitute:

(f) the person:

(i) is not the holder of a temporary visa under the Migration Act 1958 at any time in the income year; or

(ii) at all times when he or she holds such a temporary visa during the income year, is a New Zealand citizen or the holder of a visa prescribed for the purposes of subsection 20AA(2) of the Superannuation (Unclaimed Money and Lost Members) Act 1999.

59   Section 56 (definition of eligible temporary resident visa )

Repeal the definition.

Superannuation Guarantee (Administration) Act 1992

60   Subsection 65(1)

After “section”, insert “65AA,”.

61   After section 65

Insert:

65AA Shortfall component and former temporary resident

(1) This section applies if the employee is a former temporary resident (within the meaning of the Superannuation (Unclaimed Money and Lost Members) Act 1999).

(2) The Commissioner must treat the amount of the shortfall component as if it had been paid to the Commissioner by a superannuation provider in respect of the employee under section 20F of that Act.

62   Section 65A

Omit “The Commissioner must”, substitute “Except in a case covered by section 65AA, the Commissioner must”.

63   Sections 66 and 67

Omit “If”, substitute “Except in a case covered by section 65AA, if”.

Taxation Administration Act 1953

64   Subsection 8AAB(5) (after table item 13A)

Insert:

65   Subsection 15-10(2) in Schedule 1

After “12-FA,”, insert “12-FAA,”.

66   Subsection 250-10(2) in Schedule 1 (after table item 67)

Insert:

Part 3   Application, transitional and saving provisions

67   Unclaimed money days

(1) An unclaimed money day, specified by the Commissioner under paragraph 15A(a) of the Superannuation (Unclaimed Money and Lost Members) Act 1999, must be a day that occurs on or after 1 July 2009.

(2) Despite the amendments of sections 16, 17 and 18 of the Superannuation (Unclaimed Money and Lost Members) Act 1999 made by this Schedule, those sections, as in force just before the commencement of this Schedule, continue to apply, from that commencement, in relation to half-years ending before 1 July 2009.

68   Errors or omissions in statements

Section 16A of the Superannuation (Unclaimed Money and Lost Members) Act 1999, as inserted by this Schedule, does not apply in relation to statements given to the Commissioner under section 16 of that Act as in force just before the commencement of this Schedule.

69   Payments made before commencement

(1) To avoid doubt, a reference in a law of the Commonwealth to a payment made under subsection 17(1) or (2) of the Superannuation (Unclaimed Money and Lost Members) Act 1999 includes a reference to a payment made under that subsection as in force before the commencement of this Schedule.

(2) However, sections 17A, 18A, 18B and 18C of that Act, as inserted by this Schedule, do not apply in relation to such a payment.

70   Saving - regulations

(1) If, just before the commencement of this Schedule, regulations made for the purposes of subparagraph 20C(1)(b)(i) of the Superannuation (Unclaimed Money and Lost Members) Act 1999 were in force, the regulations have effect, from that commencement, as if they had been made for the purposes of subsection 20AA(2) of that Act, as inserted by this Schedule.

(2) If, just before the commencement of this Schedule, regulations made for the purposes of paragraph 20L(4)(a) of the Superannuation (Unclaimed Money and Lost Members) Act 1999 were in force, the regulations have effect, from that commencement, as if they had also been made for the purposes of paragraph 18B(4)(a) of that Act, as inserted by this Schedule.

71   Application - the Superannuation (Government Co-contribution for Low Income Earners) Act 2003

The amendment of section 6 of the Superannuation (Government Co-contribution for Low Income Earners) Act 2003 made by this Schedule applies in relation to:

(a) the 2009-10 income year; and

(b) later income years.

Schedule 3   Reforms to income tests

Part 1   Key concepts

Income Tax Assessment Act 1936

1   Subsection 6(1)

Insert:

adjusted fringe benefits total of a taxpayer for a year of income is the amount worked out using the formula:

where:

FBT rate is the rate of tax set by the Fringe Benefits Tax Act 1986 for the FBT year (as defined in the Fringe Benefits Tax Assessment Act 1986) beginning on the 1 April just before the start of the year of income.

2   Subsection 6(1)

Insert:

rebate income of an individual for a year of income is the sum of:

(a) the individual’s taxable income for the year of income; and

(b) the individual’s reportable superannuation contributions for the year of income; and

(c) the individual’s total net investment loss for the year of income; and

(d) the individual’s adjusted fringe benefits total for the year of income.

3   Subsection 6(1) (definition of reportable fringe benefits total )

Repeal the definition, substitute:

reportable fringe benefits total has the same meaning as in the Fringe Benefits Tax Assessment Act 1986.

4   Subsection 6(1)

Insert:

reportable superannuation contributions has the same meaning as in the Income Tax Assessment Act 1997.

5   Subsection 6(1)

Insert:

total net investment loss has the same meaning as in the Income Tax Assessment Act 1997.

Income Tax Assessment Act 1997

6   Subsection 995-1(1)

Insert:

financial investment includes the following:

(a) a *share in a company;

(b) an interest in a managed investment scheme (within the meaning of the Corporations Act 2001);

(c) a *forestry interest in a *forestry managed investment scheme;

(d) a right or option in respect of an investment referred to in paragraph (a), (b) or (c);

(e) an investment of a like nature to any of those referred to in paragraphs (a) to (d).

7   Subsection 995-1(1)

Insert:

income for surcharge purposes , for a person and an income year, means the sum of the following:

(a) the person’s taxable income for the income year (disregarding subsection 271-105(1) of Schedule 2F to the Income Tax Assessment Act 1936);

(b) the person’s *reportable fringe benefits total (if any) for the income year;

(c) the person’s *reportable superannuation contributions for the income year;

(d) the person’s *total net investment loss for the income year;

less the amount mentioned in subsection 301-20(3) for the person for the income year if the person is entitled to a tax offset under subsection 301-20(2) for the income year.

8   Subsection 995-1(1)

Insert:

reportable employer superannuation contribution has the meaning given by section 16-182 in Schedule 1 to the Taxation Administration Act 1953.

9   Subsection 995-1(1)

Insert:

reportable superannuation contributions , for an individual and an income year, means the sum of:

(a) the individual’s *reportable employer superannuation contributions (if any) for the income year; and

(b) the individual’s deductions (if any) under Subdivision 290-C for the income year.

10   Subsection 995-1(1)

Insert:

total net investment loss of an individual for an income year means the sum of:

(a) the amount (if any) by which the individual’s deductions for the income year that are attributable to *financial investments exceed the individual’s gross income for that year from those investments; and

(b) the amount (if any) by which the individual’s deductions for the income year that are attributable to rental property exceed the individual’s gross income for that year from rental property.

Taxation Administration Act 1953

11   At the end of Subdivision 16-C in Schedule 1

Add:

16-182 Definition of reportable employer superannuation contribution

(1) A reportable employer superannuation contribution , for an individual for an income year, is an amount contributed:

(a) by an employer of the individual, or an *associate of the employer, for the individual’s benefit in respect of the income year; and

(b) to a *superannuation fund or an *RSA;

to the extent that either or both of the following paragraphs apply:

(c) the individual has or has had, or might reasonably be expected to have or have had, the capacity to influence the size of the amount;

(d) the individual has or has had, or might reasonably be expected to have or have had, the capacity to influence the way the amount is contributed so that his or her assessable income is reduced.

(2) However, an amount is not a reportable employer superannuation contribution to the extent that it is included in the individual’s assessable income for the income year.

(3) For the purposes of this section, employer has the expanded meaning given by section 12 of the Superannuation Guarantee (Administration) Act 1992 (assuming that subsection 12(11) of that Act had not been enacted).

(4) For the purposes of this section, disregard whether any *superannuation benefits arising from a contribution are payable to a *SIS dependant of the individual if the individual dies before or after becoming entitled to receive the benefits.

Part 2   Amendment of payment summary provisions

Taxation Administration Act 1953

12   At the end of subsection 16-153(2) in Schedule 1

Add:

; or (d) the entity made *reportable employer superannuation contributions in respect of a person’s employment.

Note: The heading to section 16-153 in Schedule 1 is altered by omitting “ about withholding payments and reportable fringe benefits ”.

13   Subparagraph 16-153(3)(b)(i) in Schedule 1

Omit “and *reportable fringe-benefit amounts”, substitute “, *reportable fringe-benefit amounts and *reportable employer superannuation contributions”.

14   At the end of subsection 16-155(1) in Schedule 1

Add:

; or (d) the recipient is an individual and *reportable employer superannuation contributions have been made by the payer, in respect of the individual’s employment, during the year.

15   At the end of subsection 16-155(2) in Schedule 1

Add:

; and (c) if paragraph (1)(d) applies - the total of the *reportable employer superannuation contributions, except so much of those contributions as are covered by a previous payment summary given by the payer to the recipient under section 16-160.

16   At the end of paragraph 16-160(1)(c) in Schedule 1

Add “or”.

17   After paragraph 16-160(1)(c) in Schedule 1

Insert:

(d) *reportable employer superannuation contributions made by the payer, in respect of the recipient’s employment, during the financial year;

18   After paragraph 16-170(1)(e) in Schedule 1

Insert:

(f) specifies the *reportable employer superannuation contributions (if any) that it covers and the income year to which those contributions relate; and

Part 3   Amendment of income tests

A New Tax System (Family Assistance) Act 1999

19   Paragraph 2(1)(d) of Schedule 3

Repeal the paragraph, substitute:

(d) the individual’s total net investment loss (within the meaning of the Income Tax Assessment Act 1997) for that year;

20   After paragraph 2(1)(e) of Schedule 3

Insert:

(f) the individual’s reportable superannuation contributions (within the meaning of the Income Tax Assessment Act 1997) for that year;

21   Clause 6 of Schedule 3

Repeal the clause.

A New Tax System (Medicare Levy Surcharge - Fringe Benefits) Act 1999

22   Subsection 3(1)

Insert:

income for surcharge purposes has the same meaning as in the Income Tax Assessment Act 1997.

23   Subsection 3(1) (definition of reportable fringe benefits total )

Repeal the definition, substitute:

reportable fringe benefits total has the same meaning as in the Fringe Benefits Tax Assessment Act 1986.

24   Subsection 3(1) (definition of taxable income )

Repeal the definition.

25   Section 9

Repeal the section.

26   Paragraph 12(1)(a)

Repeal the paragraph, substitute:

(a) the person’s income for surcharge purposes for the year of income exceeds the singles surcharge threshold for the year of income; and

27   Paragraph 13(1)(a)

Repeal the paragraph, substitute:

(a) the person’s income for surcharge purposes for the year of income exceeds the person’s family surcharge threshold for the year of income; and

28   Paragraphs 15(1)(b) and (c)

Repeal the paragraphs, substitute:

(b) the sum of the person’s income for surcharge purposes, and the person’s spouse’s income for surcharge purposes, for the year of income exceeds the person’s family surcharge threshold for the year of income; and

(c) the person’s income for surcharge purposes for the year of income exceeds $17,309.

29   Paragraph 15(2)(a)

Omit “taxable income”, substitute “income for surcharge purposes”.

30   Paragraphs 16(2)(b) and (c)

Repeal the paragraphs, substitute:

(b) the sum of the person’s income for surcharge purposes, and the person’s spouse’s income for surcharge purposes, for the year of income exceeds the person’s family surcharge threshold for the year of income; and

(c) the person’s income for surcharge purposes for the year of income exceeds $17,309.

31   Paragraph 16(3)(b)

Repeal the paragraph, substitute:

(b) the person’s income for surcharge purposes for the year of income exceeds the person’s family surcharge threshold for the year of income.

32   Paragraph 16(5)(a)

Omit “taxable income”, substitute “income for surcharge purposes”.

Child Support (Assessment) Act 1989

33   Subsection 5(1) (definition of net rental property loss )

Repeal the definition.

34   Paragraph 43(1)(d)

Repeal the paragraph, substitute:

(d) the parent’s total net investment loss (within the meaning of the Income Tax Assessment Act 1997) for that year of income;

35   At the end of subsection 43(1)

Add:

; (f) the parent’s reportable superannuation contributions (within the meaning of the Income Tax Assessment Act 1997) for that year of income.

Higher Education Support Act 2003

36   Paragraph 154-5(1)(b)

Repeal the paragraph, substitute:

(b) the person’s total net investment loss (within the meaning of the Income Tax Assessment Act 1997) for the income year; and

37   Paragraph 154-5(1)(d)

Repeal the paragraph, substitute:

(d) the person’s *exempt foreign income for the income year; and

(e) the person’s reportable superannuation contributions (within the meaning of the Income Tax Assessment Act 1997) for the income year.

38   Subsections 154-5(2) and (3)

Repeal the subsections.

39   Clause 1 of Schedule 1 (definition of rental property loss )

Repeal the definition.

Income Tax Assessment Act 1936

40   Subsection 160AAAA(3)

Omit “taxpayer has a taxable income for the year of income”, substitute “taxpayer’s rebate income for the year of income is”.

41   Subsection 160AAAA(4)

Repeal the subsection, substitute:

(4) If the taxpayer is the spouse of another person, the amount applicable to the taxpayer under subsection (3) is half of the sum of:

(a) the taxpayer’s rebate income for the year of income; and

(b) the taxpayer’s spouse’s rebate income for the year of income (reduced by any amount included in the spouse’s assessable income under section 100); and

(c) any share of the net income of a trust estate to which the taxpayer’s spouse is presently entitled and that is assessed under section 98.

42   Subsection 160AAAB(3)

Omit “has a taxable income”, substitute “has an amount applicable under subsection (4) or (5)”.

43   Subsections 160AAAB(4) and (5)

Repeal the subsections, substitute:

(4) If the beneficiary is not the spouse of another person, the amount applicable to the beneficiary under subsection (3) is the amount that would be the beneficiary’s rebate income for the year of income if the beneficiary’s taxable income for that year were the beneficiary’s share of the net income of the trust estate.

(5) If the beneficiary is the spouse of another person, the amount applicable to the beneficiary under subsection (3) is half the sum of:

(a) the amount that would be applicable to the beneficiary under subsection (3) if the beneficiary were not the spouse of another person; and

(b) the beneficiary’s spouse’s rebate income for the year of income (reduced by any amount included in the spouse’s assessable income under section 100); and

(c) any share of the net income of a trust estate to which the beneficiary’s spouse is presently entitled and that is assessed under section 98.

Income Tax Assessment Act 1997

44   After paragraph 61-570(1)(b)

Insert:

(c) the total of your *reportable employer superannuation contributions for the year;

45   At the end of paragraph 61-580(1)(d)

Add:

; (v) your *reportable superannuation contributions for the current year;

(vi) your *total net investment loss for the current year.

46   At the end ofsubsection 290-160(2)

Add:

; (c) the total of your *reportable employer superannuation contributions for the income year.

47   Paragraph 290-230(2)(c)

Repeal the paragraph, substitute:

(c) the total of your spouse’s:

(i) assessable income; and

(ii) *reportable fringe benefits total; and

(iii) *reportable employer superannuation contributions;

for the income year is less than $13,800; and

Medicare Levy Act 1986

48   Subsection 3(1)

Insert:

income for surcharge purposes has the same meaning as in the Income Tax Assessment Act 1997.

49   Subsection 3(1) (definition of reportable fringe benefits total )

Repeal the definition.

50   Subsection 3(2)

Repeal the subsection, substitute:

(2) In this Act, a reference to income for surcharge purposes, net income or taxable income is to be read as a reference to that term for the year of income.

51   Subsection 8B(2)

Omit “total of a person’s taxable income and reportable fringe benefits total (if any)”, substitute “person’s income for surcharge purposes”.

Note: The heading to section 8B is altered by omitting “ Increase in levy ” and substituting “ Levy surcharge ”.

52   Subsection 8C(3)

Omit “If the total of a person’s taxable income and reportable fringe benefits total (if any) exceeds the family surcharge threshold”, substitute “If the person’s income for surcharge purposes exceeds the person’s family surcharge threshold”.

Note: The heading to section 8C is altered by omitting “ Increase in levy ” and substituting “ Levy surcharge ”.

53   Paragraphs 8D(3)(b) and (c)

Repeal the paragraphs, substitute:

(b) the sum of the person’s income for surcharge purposes and the person’s spouse’s income for surcharge purposes exceeds the person’s family surcharge threshold; and

(c) the person’s income for surcharge purposes exceeds $17,309.

Note: The heading to section 8D is altered by omitting “ Increase in levy ” and substituting “ Levy surcharge ”.

54   Subparagraphs 8D(4)(a)(i) and (ii)

Repeal the subparagraphs, substitute:

(i) the sum of the person’s income for surcharge purposes and the person’s spouse’s income for surcharge purposes exceeds the person’s family surcharge threshold;

(ii) the person’s income for surcharge purposes exceeds $17,309; or

55   Paragraph 8D(4)(b)

Repeal the paragraph, substitute:

(b) the person’s income for surcharge purposes exceeds the person’s family surcharge threshold, if the person is married for only some of the year of income.

56   Subsection 8D(5)

Repeal the subsection, substitute:

(5) In this section:

income for surcharge purposes , in relation to the person’s spouse, includes any share in the net income of a trust estate:

(a) to which the spouse is presently entitled as a beneficiary; and

(b) in respect of which the trustee of the trust estate in that capacity is liable to be assessed under section 98 of the Assessment Act.

Note: The heading to section 8E is altered by omitting “ Increase in levy ” and substituting “ Levy surcharge ”.

57   Subsection 8F(2)

Omit “family surcharge threshold”, substitute “beneficiary’s family surcharge threshold”.

Note: The heading to section 8F is altered by omitting “ Increase in levy ” and substituting “ Levy surcharge ”.

58   Paragraph 8G(2)(b)

Repeal the paragraph, substitute:

(b) the sum of the beneficiary’s trust income and the beneficiary’s spouse’s income for surcharge purposes exceeds the beneficiary’s family surcharge threshold; and

Note: The heading to section 8G is altered by omitting “ Increase in levy ” and substituting “ Levy surcharge ”.

59   Subparagraph 8G(3)(a)(i)

Repeal the subparagraph, substitute:

(i) the sum of the beneficiary’s trust income and the beneficiary’s spouse’s income for surcharge purposes exceeds the beneficiary’s family surcharge threshold; and

60   Paragraph 8G(3)(b)

Omit “family surcharge threshold”, substitute “beneficiary’s family surcharge threshold”.

61   Subsection 8G(4)

Repeal the subsection, substitute:

(4) In this section:

income for surcharge purposes , in relation to the beneficiary’s spouse, includes any share in the net income of a trust estate:

(a) to which the spouse is presently entitled as a beneficiary; and

(b) in respect of which the trustee of the trust estate in that capacity is liable to be assessed under section 98 of the Assessment Act.

Note: The heading to section 9 is altered by omitting “ (other than certain levy increases) ”.

Social Security Act 1991

62   Subsection 10A(2) (definition of net rental property loss )

Repeal the definition.

63   Subsection 10A(15)

Repeal the subsection.

64   Subsection 10B(2) (definition of business )

Repeal the definition, substitute:

business includes:

(a) the carrying on of primary production; and

(b) the provision of professional services; and

(c) the earning of income as a rentier;

but does not include employment (whether or not the employment is remunerated by wages or salary).

65   Subsection 10B(2) (definition of net passive business loss )

Repeal the definition.

66   Subsection 10B(2) (definition of passive business )

Repeal the definition.

67   Subsection 10B(2)

Insert:

total net investment loss has the same meaning as in the Income Tax Assessment Act 1997.

68   Paragraph 10B(3)(e)

Omit “net passive business loss”, substitute “total net investment loss”.

69   Subsection 19AB(2) (definition of rental property loss )

Repeal the definition.

70   Paragraph 1061ZZFA(1)(b)

Repeal the paragraph, substitute:

(b) the person’s total net investment loss (within the meaning of the Income Tax Assessment Act 1997) for the income year; and

71   Paragraph 1061ZZFA(1)(d)

Repeal the paragraph, substitute:

(d) the person’s exempt foreign income for the income year; and

(e) the person’s reportable superannuation contributions (within the meaning of the Income Tax Assessment Act 1997) for the income year.

72   Subsections 1061ZZFA(2) and (3)

Repeal the subsections.

73   Paragraph 1067G-F10(d)

Repeal the paragraph, substitute:

(d) the parent’s total net investment loss for that year;

(e) the parent’s reportable superannuation contributions (within the meaning of the Income Tax Assessment Act 1997) for that year.

74   Point 1067G-F10 (note 5)

Repeal the note, substitute:

Note 5: For total net investment loss , see subsection 10B(2).

75   Subpoint 1067G-F11(4)

Repeal the subpoint.

76   Point 1067G-F19A

Repeal the point.

77   Paragraph 1067G-G9(4)(b)

Repeal the paragraph, substitute:

(b) the reportable superannuation contributions (within the meaning of the Income Tax Assessment Act 1997) of each of the following people for the appropriate tax year:

(i) the person;

(ii) each family member of the person.

78   Subpoint 1067G-G13(1) (formula)

Repeal the formula, substitute:

79   Subpoint 1067G-G13(2) (definition of NPBL (net passive business loss) )

Repeal the definition.

80   Subpoint 1067G-G13(2)

Insert:

TNIL (total net investment loss) means the sum of the total net investment losses of each of the parents of the claimant/recipient in the appropriate tax year.

81   Paragraph 1071-3(d)

Repeal the paragraph, substitute:

(d) the person’s total net investment loss (within the meaning of the Income Tax Assessment Act 1997) for that year.

82   Point 1071-3 (note 4)

Repeal the note.

83   Point 1071-8

Repeal the point, substitute:

Total net investment loss

1071-8 For the purposes of this Part, a person’s total net investment loss for a particular tax year is the person’s accepted estimate of the amount of that loss for that year.

Student Assistance Act 1973

84   Subsection 3(1) (definition of rental property loss )

Repeal the definition.

85   Paragraph 12ZL(1)(b)

Repeal the paragraph, substitute:

(b) the person’s total net investment loss (within the meaning of the Income Tax Assessment Act 1997) for the income year; and

86   Paragraph 12ZL(1)(d)

Repeal the paragraph, substitute:

(d) the person’s exempt foreign income for the income year; and

(e) the person’s reportable superannuation contributions (within the meaning of the Income Tax Assessment Act 1997) for the income year.

87   Subsections 12ZL(2) and (3)

Repeal the subsections.

Superannuation (Government Co-contribution for Low Income Earners) Act 2003

88   At the end of subsection 8(1)

Add:

; and (c) the total of the person’s reportable employer superannuation contributions (within the meaning of the Income Tax Assessment Act 1997) for the income year.

Veterans' Entitlements Act 1986

89   Paragraph 118ZZA-3(d)

Repeal the paragraph, substitute:

(d) the person’s total net investment loss (within the meaning of the Income Tax Assessment Act 1997) for that year.

90   Point 118ZZA-3 (note 4)

Repeal the note.

91   Point 118ZZA-7

Repeal the point, substitute:

Total net investment loss

118ZZA-7 For the purposes of this Division, a person’s total net investment loss for a particular tax year is the person’s accepted estimate of the amount of that loss for that year.

Part 4   Exclusion of certain employer superannuation contributions from test for exceptional circumstances relief payment

Farm Household Support Act 1992

92   At the end of section 24A

Add:

Certain superannuation contributions disregarded

(9) For the purposes of calculating a rate referred to in subsection (1) for a person who has not reached pension age, disregard contributions made by the person’s employer to a superannuation fund or RSA for the person’s benefit, other than contributions made by a company or trust if the person is:

(a) an attributable stakeholder of the company or trust; or

(b) an associate under paragraph 1207C(1)(e), (h), (i) or (j) of the Social Security Act 1991 of a person who is an attributable stakeholder of the company or trust.

Note: Those paragraphs of the Social Security Act 1991 cover a relative, a business partner, a spouse or child of a business partner and a trustee of a trust (where the person concerned can benefit from the trust).

(10) In subsection (9):

attributable stakeholder of a company or trust has the meaning given by section 1207X of the Social Security Act 1991.

pension age has the meaning given by section 23 of the Social Security Act 1991.

RSA has the meaning given by the Retirement Savings Accounts Act 1997.

superannuation fund has the meaning given by section 10 of the Superannuation Industry (Supervision) Act 1993.

93   At the end of section 24AA

Add:

Certain superannuation contributions disregarded

(11) For the purposes of calculating a rate referred to in subsection (1) for a person who has not reached pension age (within the meaning of section 23 of the Social Security Act 1991), disregard contributions that are disregarded under subsection 24A(9).

Part 5   Dependency rebates

Income Tax Assessment Act 1936

94   Subsection 159J(1AB)

Repeal the subsection, substitute:

(1AB) A taxpayer is not entitled, in his or her assessment in respect of a year of income, to a rebate under this section in respect of a dependant included in class 1, 2, 5 or 6 in the table in subsection (2) if:

(a) for a dependant included in class 1 - the taxpayer’s adjusted taxable income for the year is more than the income limit for family tax benefit (Part B) for the year; or

(b) for a dependant included in class 2, 5 or 6 - subsection (1AC) applies to the taxpayer for the year.

(1AC) This subsection applies to a taxpayer for a year of income if the sum of:

(a) the taxpayer’s adjusted taxable income for the year; and

(b) if the taxpayer has a spouse during the year - the spouse’s adjusted taxable income for the year; and

(c) if the taxpayer has a spouse during only part of the year - this amount:

is more than the income limit for family tax benefit (Part B) for the year.

Note: If the taxpayer has a different spouse during different parts of the year, the adjusted taxable income of each spouse will be included under paragraph (c).

95   Subsection 159J(4)

Omit “separate net income derived by the dependant in”, substitute “dependant’s adjusted taxable income for”.

96   Subsection 159J(5)

Omit “a separate net income in”, substitute “an adjusted taxable income for”.

97   Subsection 159J(6)

Insert:

adjusted taxable income has the same meaning as in the A New Tax System (Family Assistance) Act 1999, except that, for the purposes of this section, clauses 3 and 3A of Schedule 3 to that Act are taken not to have been enacted.

98   Subsection 159J(6)

Insert:

income limit for family tax benefit (Part B) means the amount specified in subclause 28B(1) of Schedule 1 to the A New Tax System (Family Assistance) Act 1999, as indexed under Part 2 of Schedule 4 to that Act.

99   Subsection 159J(6) (definition of separate net income )

Repeal the definition.

100   Subsection 159L(3B)

Repeal the subsection, substitute:

(3B) A taxpayer is not entitled, in his or her assessment in respect of a year of income, to a rebate under this section if subsection 159J(1AC) applies to the taxpayer for the year.

Social Security Act 1991

101   Subpoint 1067G-G13(2) (paragraph (b) of the definition of NITML (notional income tax/medicare levy) )

Omit “a separate net income within the meaning of section 159J of the Income Tax Assessment Act 1936 in that year”, substitute “an adjusted taxable income within the meaning of the A New Tax System (Family Assistance) Act 1999 in that year”.

Part 6   Application

102   Application

(1) The amendments made by this Schedule apply in relation to income years starting on or after 1 July 2009.

(2) However, the amendments do not apply in relation to the following:

(a) a claim for baby bonus (within the meaning of the A New Tax System (Family Assistance) Act 1999) if an estimate contained in the claim is for a period beginning before 1 July 2009;

(b) an election to work out a parent’s adjusted taxable income under section 60 of the Child Support (Assessment) Act 1989 if the remaining period (within the meaning of subsection 60(5) of that Act) concerned starts before 1 July 2009;

(c) working out a parent’s real remaining period adjusted taxable income under section 64 of the Child Support (Assessment) Act 1989 in relation to an election covered by paragraph (b) of this subitem.