(1) An entity is a designated infrastructure project entity at a time (the relevant time ) if:

(a) at the relevant time, the entity is a *fixed trust or a company; and

(b) at or after the relevant time, the entity *carries on a single *designated infrastructure project; and

(c) the entity does not, at or before the relevant time, carry on any other designated infrastructure project; and

(d) the only activities in which the entity engages at the relevant time, or engaged before the relevant time, are or were for the purposes of the entity carrying on the single designated infrastructure project.

(2) For the purposes of this section:

(a) an *enterprise that becomes a *designated infrastructure project at a time is treated as having been a designated infrastructure project at all earlier times; and

(b) if the entity *carries on (whether or not at the same time) one or more parts, but not the whole, of a single designated infrastructure project - the parts are treated as being a single designated infrastructure project; and

(c) in any case - the following are treated as being a single designated infrastructure project:

(i) a single designated infrastructure project (the listed infrastructure project ) that is included on an Infrastructure Priority List;

(ii) any designated infrastructure projects that the entity carries on (whether or not at the same time) and that are part of the listed infrastructure project; and

Note: For Infrastructure Priority Lists, see paragraph 5(2)(b) of the Infrastructure Australia Act 2008.

(d) in any case - any designated infrastructure projects that the entity carries on (whether or not at the same time) and that are part of a single infrastructure project that:

(i) is included on an Infrastructure Priority List; and

(ii) is not a designated infrastructure project;

are treated as being a single designated infrastructure project.

Partnerships

(3) Subsection (4) applies to an entity if:

(a) the entity is a *fixed trust or a company; and

(b) the person that is the trustee of the trust, or the person that is the company, is a partner in a partnership.

(4) For the purposes of subsections (1) and (2), the entity:

(a) is treated as *carrying on any *designated infrastructure project carried on by the partnership; and

(b) is treated as engaging in any activity engaged in by the partnership; and

(c) if the partnership engages in an activity for the purpose of the partnership carrying on a designated infrastructure project - is treated as engaging in that activity for the purpose of the entity carrying on that designated infrastructure project.

Consolidated groups

(5) For the purposes of working out whether the *head company of a *consolidated group was a *designated infrastructure project entity at a time (whether before or after the group consolidates), section 701-5 (Entry history rule) is treated as not applying to the head company in relation to an entity that was not a *member of the consolidated group at that time.

(6) For the purposes of working out whether an entity is a *designated infrastructure project entity at a time after the entity ceases to be a *subsidiary member of a *consolidated group, section 701-40 (Exit history rule) is treated as not applying to the entity in relation to the group.

Change of ownership of trusts and companies

415-25 Tax losses of trusts

Scope

(1) This section applies to a *tax loss of a *trust if the trust is a *designated infrastructure project entity at a time (the status time ) in the *loss year.

Modifications of Schedule 2F to the Income Tax Assessment Act 1936

(2) Despite paragraph 266-25(1)(b), 266-30(a), 266-75(1)(b) or (2)(b), 266-80(1)(a) or (2)(a), 266-110(1)(b), 266-115(a), 266-150(2)(a), 266-155(2)(a), 267-20(1)(b) or 267-60(a) in Schedule 2F to the Income Tax Assessment Act 1936, for the purposes of sections 266-40 and 266-45, section 266-90, subsections 266-125(1) and (2), subsections 266-165(1) and (2), sections 267-40 and 267-45 or sections 267-70 and 267-75 in that Schedule (whichever are applicable), the test period starts at the first time:

(a) that occurs after the status time; and

(b) at which the trust is not a *designated infrastructure project entity;

if, apart from this subsection, the test period would start earlier.

(3) For the purposes of section 267-30 in that Schedule, disregard any part of an income year during which the trust is a *designated infrastructure project entity.

(4) For the purposes of working out, under subsection 268-10(3), 268-15(3) or 268-20(3) in that Schedule, the end of the first period, disregard any part of the income year mentioned in that subsection during which the trust is a *designated infrastructure project entity.

Note: A trust does not calculate its net income and tax loss under Division 268 in that Schedule if the trust was a designated infrastructure project entity during the whole of the income year: see paragraphs 266-30(c), 266-80(1)(d) and (2)(c), 266-115(b), 266-155(2)(b), 267-60(b) and 272-100(f) in that Schedule.

(5) For the purposes paragraph 268-20(4)(b) in that Schedule, disregard any part of the first of the successive periods during which the trust is a *designated infrastructure project entity.

415-30 Bad debts written off etc. by trusts

Scope

(1) This section applies to a debt to which paragraph 266-35(1)(a), 266-85(1)(a) or (2)(a), 266-120(1)(a), 266-160(1)(a) or (b), 267-25(1)(a) or 267-65(1)(a) in Schedule 2F to the Income Tax Assessment Act 1936 applies, if the trust is a *designated infrastructure project entity at a time (the status time ) in the income year in which the debt was incurred.

Modifications of Schedule 2F to the Income Tax Assessment Act 1936

(2) Despite paragraph 266-35(1)(b), 266-85(1)(b) or (2)(b), 266-120(1)(b), 266-160(2)(a), 267-25(1)(b) or 267-65(1)(a) in that Schedule, for the purposes of sections 266-40 and 266-45, section 266-90, subsections 266-125(1) and (2), subsections 266-165(1) and (2), sections 267-40 and 267-45 or sections 267-70 and 267-75 in that Schedule (whichever are applicable), the test period starts at the first time:

(a) that occurs after the status time; and

(b) at which the trust is not a *designated infrastructure project entity.

(3) For the purposes of section 267-30 in that Schedule, disregard any part of an income year during which the trust is a *designated infrastructure project entity.

415-35 Tax losses of companies

Scope

(1) This section applies to a *tax loss of a company if the company is a *designated infrastructure project entity at a time (the status time ) in the *loss year.

Modifications of Divisions 165 and 166

(2) Despite subsection 165-12(1), 166-5(2) or 166-20(1), the *ownership test period or *test period under that subsection starts at the earlier of:

(a) the first time:

(i) that occurs after the status time; and

(ii) at which the company is not a *designated infrastructure project entity; and

(b) the end of the income year referred to in that subsection as the income year.

(3) In a case to which paragraph (2)(b) applies, the company is treated as meeting the conditions in section 165-12.

(4) Despite subsection 165-13(2), 166-5(5), 165-15(2) or 166-20(4), the *same business test period under that subsection starts at the start of the *ownership test period or *test period (whichever is applicable) if, apart from this subsection, the same business test period would start earlier.

(5) Despite subsection 165-13(2), 165-15(3), 166-5(6) or 166-20(4), the *test time under that subsection occurs just after the start of the *ownership test period or *test period (whichever is applicable) if, apart from this subsection, the test time would occur earlier.

(6) A reference in subsection 165-15(1) to the *loss year is treated as being a reference to the period:

(a) starting at the start of the *ownership test period; and

(b) ending at the end of the income year in which the ownership test period starts.

(7) For the purposes of working out, under paragraph 165-45(3)(a) or (b) or subsection 165-45(4), the end of the first period, disregard any part of the income year mentioned in section 165-45 during which the company is a *designated infrastructure project entity.

Note: A company does not calculate its taxable income and tax loss under Subdivision 165-B if the company was a designated infrastructure project entity during the whole of the income year: see paragraph 165-35(c).

Exceptions

(8) Disregard this section for the purposes of Subdivisions 165-CA and 165-CB (about net capital losses) and 175-A and 175-CA (about tax benefits).

415-40 Bad debts written off by companies

Scope

(1) This section applies to a debt that a company writes off as bad, if the company is a *designated infrastructure project entity at a time (the status time ) in the income year in which the debt was incurred.

Modifications of Divisions 165 and 166

(2) Despite subsection 165-123(1) or 166-40(2), the *ownership test period or *test period under that subsection starts at the earlier of:

(a) the first time that occurs after the status time and on or after:

(i) in the case of subsection 165-123(1) - the start of the *first continuity period; or

(ii) in the case of subsection 166-40(2) - the time the company chooses under that subsection;

and at which the company is not a *designated infrastructure project entity; and

(b) the end of the *second continuity period.

(3) In a case to which paragraph (2)(b) applies, the company is treated as meeting the conditions in section 165-123.

(4) Despite subsection 165-126(2), 165-129(2), 165-132(1) or 166-40(5), the *same business test period under that subsection starts at the start of the *ownership test period or *test period (whichever is applicable) if, apart from this subsection, the same business test period would start earlier.

(5) Despite subsection 165-126(2), 165-129(3) or 166-40(6), the *test time under that subsection occurs just after the start of the *ownership test period or *test period (whichever is applicable) if, apart from this subsection, the test time would occur earlier.

(6) A reference in subsection 165-129(1) to the *first continuity period is treated as being a reference to the period:

(a) starting at the start of the *ownership test period; and

(b) ending at the end of the income year in which the ownership test period starts.

Exception

(7) Disregard this section for the purposes of Subdivision 175-C (about tax benefits).

Consolidated groups

415-45 Losses transferred to head companies of consolidated groups

Subdivision 707-C (Amount of transferred losses that can be utilised) does not apply to a loss transferred under Subdivision 707-A (Transfer of previously unutilised losses to head company), if:

(a) just before the transfer, the transferor of the loss was a *designated infrastructure project entity; and

(b) just after the transfer, the transferee of the loss is a designated infrastructure project entity.

Subdivision 415-C - Designating infrastructure projects

Guide to Subdivision 415-C

415-50 What this Subdivision is about

To receive the special treatment for tax losses and bad debts under Subdivision 415-B, an entity must only engage in activities for the purposes of carrying on an infrastructure project designated by the Infrastructure Coordinator under this Subdivision.

Designation is dependent on:

(a) criteria prescribed by the Minister; and

(b) a cap on the total estimated private capital expenditure that would be incurred for all provisionally designated and designated infrastructure projects.

Table of sections

Designating infrastructure projects

415-55 Applications for designation

415-60 Dealing with applications

415-65 Provisional designation

415-70 Designation

Infrastructure project capital expenditure cap

415-75 Infrastructure project capital expenditure cap

415-80 Acceptance of estimates of infrastructure project capital expenditure

Miscellaneous

415-85 Review of decisions

415-90 Information to be made public

415-95 Delegation

415-100 Infrastructure project designation rules

Designating infrastructure projects

415-55 Applications for designation

(1) An entity may apply to the Infrastructure Coordinator to have the Infrastructure Coordinator designate an *enterprise (the infrastructure project ) that is a proposed investment in, or enhancement to, infrastructure as being an infrastructure project in relation to which Subdivision 415-B applies.

Note: The Infrastructure Coordinator holds office under the Infrastructure Australia Act 2008.

(2) The application must include an estimate of the *infrastructure project capital expenditure that would be incurred for the purpose of the infrastructure project.

(3) Subsection (2) does not apply to *infrastructure project capital expenditure to the extent that the infrastructure project capital expenditure would be:

(a) incurred by an *Australian government agency; or

(b) funded by a grant from an Australian government agency.

(4) The application must:

(a) be in a form (if any) approved by the Infrastructure Coordinator; and

(b) be accompanied by the fee (if any) prescribed by the *infrastructure project designation rules.

415-60 Dealing with applications

Dealing with applications

(1) The Infrastructure Coordinator must deal with applications made under this Division:

(a) in accordance with the requirements prescribed by the *infrastructure project designation rules; or

(b) if the infrastructure project designation rules do not prescribe any requirements - in the order in which the applications are made.

(2) Without limiting paragraph (1)(a), the requirements the *infrastructure project designation rules may prescribe for the purposes of that paragraph include:

(a) requirements relating to the time at which or by which the Infrastructure Coordinator must deal with an application; and

(b) requirements relating to applications that, in the opinion of the Infrastructure Coordinator, are incomplete or do not contain sufficient information for the Infrastructure Coordinator to deal with the applications.

(3) For the purposes of subsection (1), the Infrastructure Coordinator deals with an application by:

(a) designating the infrastructure project provisionally under section 415-65, or deciding not to designate the infrastructure project provisionally under that section; or

(b) designating the infrastructure project under section 415-70 or deciding not to designate the infrastructure project under that section (whether or not the Infrastructure Coordinator has previously dealt with the application by designating the infrastructure project provisionally under section 415-65).

(4) Paragraph (1)(b) does not apply to the Infrastructure Coordinator deciding whether to designate a *provisionally designated infrastructure project under section 415-70.

No designation after 30 June 2017 or later prescribed day

(5) Despite anything else in this Subdivision, the Infrastructure Coordinator must not provisionally designate the infrastructure project under section 415-65, or designate the infrastructure project under section 415-70, after:

(a) 30 June 2017; or

(b) a later day (if any) prescribed by the *infrastructure project designation rules.

415-65 Provisional designation

Provisional designation

(1) The Infrastructure Coordinator must, by instrument in writing, designate the infrastructure project provisionally for the purposes of this Division if:

(a) the entity applies to have the Infrastructure Coordinator designate the infrastructure project in accordance with section 415-55; and

(b) the Infrastructure Coordinator accepts the estimate of the *infrastructure project capital expenditure under section 415-80; and

(c) the provisional designation would not breach the infrastructure project capital expenditure cap under section 415-75; and

(d) the following conditions are satisfied:

(i) the conditions prescribed by the *infrastructure project designation rules;

(ii) if the infrastructure project designation rules do not prescribe any conditions - in the opinion of the Infrastructure Coordinator, the infrastructure is nationally significant infrastructure (within the meaning of the Infrastructure Australia Act 2008); and

(e) the infrastructure project is not a *designated infrastructure project.

(2) The instrument of provisional designation must contain any details prescribed by the *infrastructure project designation rules.

Amendment of instruments of provisional designation

(3) The Infrastructure Coordinator must, by instrument in writing, amend the instrument of provisional designation in accordance with any requirements prescribed by the *infrastructure project designation rules. The Infrastructure Coordinator must not amend the instrument in any other circumstances.

(4) Without limiting subsection (3), the requirements the *infrastructure project designation rules may prescribe for the purposes of that subsection include requirements relating to when an amendment must take effect, which may be a time before the amendment is made.

Revocation of instruments of provisional designation

(5) The Infrastructure Coordinator must, by instrument in writing, revoke the instrument of provisional designation:

(a) if the Infrastructure Coordinator has designated the project under section 415-70, or decides not to designate the project; or

(b) if the Infrastructure Coordinator has revoked the instrument of acceptance of the estimate under section 415-80; or

(c) in the circumstances (if any) prescribed by the *infrastructure project designation rules.

The Infrastructure Coordinator must not revoke the instrument in any other circumstances.

(6) Without limiting paragraph (5)(c), the circumstances the *infrastructure project designation rules may prescribe for the purposes of that paragraph include:

(a) circumstances involving a failure by a prescribed entity to give prescribed information to the Infrastructure Coordinator; and

(b) circumstances involving a breach of conditions set by the Infrastructure Coordinator for the *provisionally designated infrastructure project to remain provisionally designated.

(7) The *infrastructure project designation rules must prescribe matters to which the Infrastructure Coordinator must have regard in setting conditions for a *provisionally designated infrastructure project to remain provisionally designated, if the infrastructure project designation rules provide for the Infrastructure Coordinator to set such conditions, as mentioned in paragraph (6)(b).

415-70 Designation

Designation

(1) The Infrastructure Coordinator must, by instrument in writing, designate the infrastructure project for the purposes of this Division if:

(a) the entity applies to have the Infrastructure Coordinator designate the infrastructure project in accordance with section 415-55; and

(b) the Infrastructure Coordinator accepts the estimate of the *infrastructure project capital expenditure under section 415-80; and

(c) the designation would not breach the infrastructure project capital expenditure cap under section 415-75; and

(d) the following conditions are satisfied:

(i) the conditions prescribed by the *infrastructure project designation rules;

(ii) if the infrastructure project designation rules do not prescribe any conditions - the conditions mentioned in subsection (2);

(whether or not the infrastructure project is a *provisionally designated infrastructure project).

(2) For the purposes of subparagraph (1)(d)(ii), the following are the conditions:

(a) in the opinion of the Infrastructure Coordinator, the infrastructure is nationally significant infrastructure (within the meaning of the Infrastructure Australia Act 2008);

(b) in the opinion of the Infrastructure Coordinator, financial close on the infrastructure project has occurred or is imminent.

(3) The instrument of designation must contain any details prescribed by the *infrastructure project designation rules.

Amendment of instruments of designation

(4) The Infrastructure Coordinator must, by instrument in writing, amend the instrument of designation in accordance with any requirements prescribed by the *infrastructure project designation rules. The Infrastructure Coordinator must not amend the instrument in any other circumstances.

(5) Without limiting subsection (4), the requirements the *infrastructure project designation rules may prescribe for the purposes of that subsection include requirements relating to when an amendment must take effect, which may be a time before the amendment is made.

Revocation of instruments of designation

(6) The Infrastructure Coordinator must, by instrument in writing, revoke the instrument of designation in the circumstances prescribed by the *infrastructure project designation rules. The Infrastructure Coordinator must not revoke the instrument in any other circumstances.

(7) Without limiting subsection (6), the circumstances the *infrastructure project designation rules may prescribe for the purposes of that subsection include:

(a) circumstances involving a failure by a prescribed entity to give prescribed information to the Infrastructure Coordinator; and

(b) circumstances involving a breach of conditions set by the Infrastructure Coordinator for the *designated infrastructure project to remain designated.

(8) The *infrastructure project designation rules must prescribe matters to which the Infrastructure Coordinator must have regard in setting conditions for a *designated infrastructure project to remain designated, if the infrastructure project designation rules provide for the Infrastructure Coordinator to set such conditions, as mentioned in paragraph (7)(b).

Infrastructure Coordinator must notify Commissioner

(9) The Infrastructure Coordinator must notify the Commissioner of a decision made by the Infrastructure Coordinator:

(a) to designate the infrastructure project; or

(b) to amend or to revoke the instrument of designation;

within 28 days after making the decision.

Infrastructure project capital expenditure cap

415-75 Infrastructure project capital expenditure cap

(1) Provisional designation, or designation, of the infrastructure project would breach the *infrastructure project capital expenditure cap under this section if, were the provisional designation or designation to occur, the total of the estimates accepted under section 415-80 for each infrastructure project that, just after the provisional designation or designation, would be:

(a) a *provisionally designated infrastructure project; or

(b) a *designated infrastructure project;

would exceed the amount mentioned in subsection (2).

(2) The amount is:

(a) $25 billion; or

(b) if the *infrastructure project designation rules prescribe a greater amount - that prescribed amount.

(3) For the purposes of subsection (1), disregard so much of the amount of an estimate for an infrastructure project (the listed infrastructure project ) as relates to a part of the listed infrastructure project, if:

(a) thatpart of the listed project is (or would be, were the provisional designation or designation mentioned in that subsection to occur):

(i) a *provisionally designated infrastructure project; or

(ii) a *designated infrastructure project; and

(b) the listed infrastructure project is included on an Infrastructure Priority List.

Note: For Infrastructure Priority Lists, see paragraph 5(2)(b) of the Infrastructure Australia Act 2008.

(4) In this Act:

infrastructure project capital expenditure :

(a) has the meaning given by the *infrastructure project designation rules; or

(b) if the infrastructure project designation rules do not give infrastructure project capital expenditure a meaning - means capital expenditure.

415-80 Acceptance of estimates of infrastructure project capital expenditure

Acceptance of estimates

(1) The Infrastructure Coordinator must, by instrument in writing, accept the estimate of *infrastructure project capital expenditure if the following conditions are satisfied:

(a) the conditions prescribed by the *infrastructure project designation rules;

(b) if the infrastructure project designation rules do not prescribe any conditions - in the opinion of the Infrastructure Coordinator, the estimate is acceptable.

Revocation of instruments of acceptance

(2) The Infrastructure Coordinator must not revoke the instrument of acceptance if the infrastructure project is a *designated infrastructure project.

(3) Subject to subsection (2), the Infrastructure Coordinator must, by instrument in writing, revoke the instrument of acceptance in the circumstances prescribed by the *infrastructure project designation rules. The Infrastructure Coordinator must not revoke the instrument in any other circumstances.

(4) Without limiting subsection (3), the circumstances the *infrastructure project designation rules may prescribe for the purposes of that subsection include:

(a) circumstances involving a failure by a prescribed entity to give prescribed information to the Infrastructure Coordinator; and

(b) circumstances involving a failure by the applicant to amend the estimate in accordance with a request made by the Infrastructure Coordinator.

(5) The *infrastructure project designation rules must prescribe matters to which the Infrastructure Coordinator must have regard in requesting the applicant to amend the estimate, if the infrastructure project designation rules provide for the Infrastructure Coordinator to make such requests as mentioned in paragraph (4)(b).

(6) If:

(a) the *infrastructure project designation rules provide for the Infrastructure Coordinator to request the applicant to amend the estimate; and

(b) the applicant amends the estimate in accordance with such a request;

the acceptance is treated, from the time the amendment is made, as being an acceptance of the amended estimate.

Miscellaneous

415-85 Review of decisions

Applications may be made to the *AAT for review of the following decisions of the Infrastructure Coordinator:

(a) a decision not to designate the infrastructure project provisionally under section 415-65;

(b) a decision to amend or revoke the instrument of provisional designation under section 415-65;

(c) a decision not to designate the infrastructure project under section 415-70;

(d) a decision to amend or revoke the instrument of designation under section 415-70.

415-90 Information to be made public

The Infrastructure Coordinator must comply with any requirements prescribed by the *infrastructure project designation rules in relation to the publication of information about:

(a) *provisionally designated infrastructure projects and *designated infrastructure projects; and

(b) the *infrastructure project capital expenditure cap under section 415-75.

415-95 Delegation

The Infrastructure Coordinator may, by instrument in writing, delegate any of the Infrastructure Coordinator’s powers or functions under this Subdivision to an SES employee, or acting SES employee, who is a member of the staff assisting the Infrastructure Coordinator as mentioned in section 39 of the Infrastructure Australia Act 2008.

415-100 Infrastructure project designation rules

(1) The Minister may, by legislative instrument, make rules (the infrastructure project designation rules ) prescribing matters:

(a) required or permitted by this Subdivision to be prescribed by the rules; or

(b) necessary or convenient to be prescribed for carrying out or giving effect to this Subdivision.

(2) Despite subsection 14(2) of the Legislative Instruments Act 2003, the *infrastructure project designation rules may make provision in relation to a matter by applying, adopting or incorporating any matter contained in an instrument, or other writing, made by Infrastructure Australia as in force or existing from time to time.

5   At the end of section 707-120

Add:

Designated infrastructure project entities

(5) Despite subsection (1A), the loss is transferred under subsection (1) to the full extent if:

(a) the loss is a *tax loss; and

(b) the joining entity is a *designated infrastructure project entity:

(i) at a time in the *loss year; and

(ii) just before the joining time.

6   After subsection 719-265(3)

Insert:

Transfer of tax loss from designated infrastructure project entity

(3A) If:

(a) the focal company made the loss because theloss was transferred under Subdivision 707-A to the focal company as the *head company of a *MEC group; and

(b) subsection 707-120(5) (about designated infrastructure project entities joining consolidated groups) applies to the transfer;

the test company for the focal company is the company that was the *top company for the MEC group at the time of a transfer.

Part 2   Consequential amendments

Income Tax Assessment Act 1936

7   At the end of section 266-15 in Schedule 2F

Add:

Note: The exceptions mentioned in this section apply differently in relation to designated infrastructure project entities: see sections 415-25 and 415-30 of the Income Tax Assessment Act 1997.

8   At the end of section 266-30 in Schedule 2F

Add:

Note: See section 415-25 of the Income Tax Assessment Act 1997 if the trust was a designated infrastructure project entity during part, but not the whole, of the test period.

9   At the end of section 266-65 in Schedule 2F

Add:

Note: The exception mentioned in this section applies differently in relation to designated infrastructure project entities: see sections 415-25 and 415-30 of the Income Tax Assessment Act 1997.

10   At the end of section 266-80 in Schedule 2F

Add:

Note: See section 415-25 of the Income Tax Assessment Act 1997 if the trust was a designated infrastructure project entity during part, but not the whole, of the test period.

11   At the end of section 266-100 in Schedule 2F

Add:

Note: The exceptions mentioned in this section apply differently in relation to designated infrastructure project entities: see sections 415-25 and 415-30 of the Income Tax Assessment Act 1997.

12   At the end of section 266-115 in Schedule 2F

Add:

Note: See section 415-25 of the Income Tax Assessment Act 1997 if the trust was a designated infrastructure project entity during part, but not the whole, of the test period.

13   At the end of section 266-140 in Schedule 2F

Add:

Note: The exceptions mentioned in this section apply differently in relation to designated infrastructure project entities: see sections 415-25 and 415-30 of the Income Tax Assessment Act 1997.

14   At the end of section 266-155 in Schedule 2F

Add:

Note: See section 415-25 of the Income Tax Assessment Act 1997 if the trust was a designated infrastructure project entity during part, but not the whole, of the test period.

15   At the end of section 267-15 in Schedule 2F

Add:

Note: The exceptions mentioned in this section apply differently in relation to designated infrastructure project entities: see sections 415-25 and 415-30 of the Income Tax Assessment Act 1997.

16   At the end of section 267-55 in Schedule 2F

Add:

Note: The exceptions mentioned in this section apply differently in relation to designated infrastructure project entities: see sections 415-25 and 415-30 of the Income Tax Assessment Act 1997.

17   At the end of section 267-60 in Schedule 2F

Add:

Note: See section 415-25 of the Income Tax Assessment Act 1997 if the trust was a designated infrastructure project entity during part, but not the whole, of the test period.

18   Subsection 268-20(4) in Schedule 2F

Repeal the subsection, substitute:

(4) However, what would, apart from this subsection, be 2 or more successive periods are treated as a single period if:

(a) the trust is a listed widely held trust; and

(b) during all of the periods the trust passed the same business test in relation to the time immediately before the end of the first of the successive periods.

19   Subsection 272-140(1) in Schedule 2F

Insert:

designated infrastructure project entity has the meaning given by the Income Tax Assessment Act 1997.

20   Subsection 272-140(1) in Schedule 2F (at the end of paragraph (c) of the definition of tax loss )

Add “(including such a tax loss as increased under section 415-15 of that Act)”.

Income Tax Assessment Act 1997

21   Section 12-5 (table item headed "financial arrangements")

Omit “borrowings”.

22   Section 12-5 (table item headed "infrastructure borrowings")

Repeal the item, substitute:

23   Section 12-5 (table item headed "interest")

Omit “borrowings”.

24   Section 12-5 (table item headed "tax losses")

After:

insert:

25   Section 36-25 (at the end of the table dealing with tax losses of companies)

Add:

26   Section 36-25 (at the end of the table dealing with tax losses of trusts)

Add:

27   At the end of section 165-5

Add:

Note: The exceptions mentioned in this section apply differently in relation to designated infrastructure project entities: see section 415-35.

28   At the end of section 165-117

Add:

Note: The exceptions mentioned in this section apply differently in relation to designated infrastructure project entities: see section 415-40.

29   Subsection 707-120(1)

Repeal the subsection, substitute:

Transfer of loss from joining entity to head company

(1) Subject to subsection (1A), the loss is transferred at the joining time from the joining entity to the *head company of the joined group (even if they are the same entity).

(1A) The loss is transferred under subsection (1) only to the extent (if any) that the loss could have been *utilised by the joining entity for an income year consisting of the *trial year if:

(a) at the joining time, the joining entity had not become a *member of the joined group (but had been a *wholly-owned subsidiary of the *head company if the joining entity is not the head company); and

(b) the amount of the loss that could be utilised for the trial year were not limited by the joining entity’s income or gains for the trial year.

30   Paragraph 707-125(1)(b)

Omit “subsection 707-120(1)”, substitute “section 707-120”.

31   Subsection 707-130(1)

Omit “subsection 707-120(1)”, substitute “section 707-120”.

32   At the end of section 707-300

Add:

Note: This Subdivision does not apply if the joining entity is a designated infrastructure project entity just before the transfer and the head company is a designated infrastructure project entity just after the transfer: see section 415-45.

33   Paragraph 719-265(1)(a)

After “(3),”, insert “(3A),”.

34   Subsection 719-265(7)

After “(3),”, insert “(3A),”.

35   Subsection 995-1(1)

Insert:

designated infrastructure project means an infrastructure project designated under section 415-70.

designated infrastructure project entity has the meaning given by section 415-20.

infrastructure project capital expenditure has the meaning given by subsection 415-75(4).

infrastructure project designation rules has the meaning given by section 415-100.

36   Subsection 995-1(1) (at the end of the definition of ownership test period )

Add “, and affected by sections 415-35 and 415-40”.

37   Subsection 995-1(1)

Insert:

provisionally designated infrastructure project means an infrastructure project designated provisionally under section 415-65.

38   Subsection 995-1(1) (definition of same business test period )

Omit “section 707-400”, substitute “sections 415-35, 415-40 and 707-400”.

39   Subsection 995-1(1) (paragraph (a) of the definition of tax loss )

After “this Act”, insert “(including such a tax loss as increased under section 415-15)”.

40   Subsection 995-1(1) (at the end of paragraph (d) of the definition of tax loss )

Add “(including such a tax loss as increased under section 415-15 of this Act)”.

41   Subsection 995-1(1) (at the end of the definition of test period )

Add “, and affected by sections 415-35 and 415-40”.

42   Subsection 995-1(1) (at the end of the definition of test time )

Add “, and affected by sections 415-35 and 415-40”.

Infrastructure Australia Act 2008

43   Subsection 28(2)

Repeal the subsection, substitute:

(2) The Infrastructure Coordinator has the following additional functions:

(a) any functions that the Minister, by writing, directs the Infrastructure Coordinator to perform;

(b) any other functions conferred on the Infrastructure Coordinator by this Act or any other law.

44   Subsections 28(3) and (4)

Omit “subsection (2)”, substitute “paragraph (2)(a)”.

45   Subsection 40(1)

Omit “subsection 28(2)”, substitute “paragraph 28(2)(a)”.

46   Saving provision - directions

A direction:

(a) made under subsection 28(2) of the Infrastructure Australia Act 2008; and

(b) in force just before the commencement of this item;

has effect, from that commencement, as if it had been made under paragraph 28(2)(a) of that Act, as amended by this Schedule.

Part 3   Application of amendments

Income Tax (Transitional Provisions) Act 1997

47   At the end of Part 3-45

Add:

Division 415 - Designated infrastructure projects

Table of Subdivisions

415-B Application of Subdivision 415-B of the Income Tax Assessment Act 1997

Subdivision 415-B - Application of Subdivision 415-B of the Income Tax Assessment Act 1997

Table of sections

415-10 Application of Subdivision 415-B of the Income Tax Assessment Act 1997

415-10 Application of Subdivision 415-B of the Income Tax Assessment Act 1997

Subdivision 415-B of the Income Tax Assessment Act 1997 applies to:

(a) a tax loss for the 2012-13 income year or a later income year; or

(b) a debt incurred in the 2012-13 income year or a later income year.

48   Application of amendments

(1) The amendments made by items 1, 2 and 3 of this Schedule apply in relation to the 2012-13 income year and later income years.

(2) The amendments made by items 5 and 6 of this Schedule apply to a loss for the 2012-13 income year or a later income year.

Part 4   Miscellaneous amendments

Division 1   Income Tax Assessment Act 1936

49   Subsections 266-185(1) and 267-90(1) in Schedule 2F

Omit “start”, substitute “beginning”.

50   Subsection 268-10(2) in Schedule 2F

Omit “starts at the start”, substitute “begins at the beginning”.

51   Subsection 268-10(2) in Schedule 2F

Omit “starts” (second occurring), substitute “begins”.

52   Subsection 268-15(2) in Schedule 2F

Omit “starts at the start”, substitute “begins at the beginning”.

53   Subsection 268-15(2) in Schedule 2F

Omit “starts” (second occurring), substitute “begins”.

54   Subsection 268-20(2) in Schedule 2F

Omit “starts at the start”, substitute “begins at the beginning”.

55   Subsection 268-20(2) in Schedule 2F

Omit “starts” (second occurring), substitute “begins”.

56   Subsection 268-25(2) in Schedule 2F

Omit “starts at the start”, substitute “begins at the beginning”.

57   Subsection 268-25(2) in Schedule 2F

Omit “starts” (second occurring), substitute “begins”.

58   Subsections 268-75(1) and 268-80(1) in Schedule 2F

Omit “starts” (wherever occurring), substitute “begins”.

59   Subsection 268-85(5) in Schedule 2F

Omit “start”, substitute “begin”.

60   Subsection 269-65(1) in Schedule 2F

Omit “start” (first occurring), substitute “begin”.

61   Subsection 269-65(1) in Schedule 2F

Omit “start” (second occurring), substitute “beginning”.

62   Paragraph 269-65(1)(a) in Schedule 2F

Omit “start”, substitute “beginning”.

63   Paragraphs 269-100(4)(a) and 271-80(a) in Schedule 2F

Omit “started”, substitute “began”.

64   Subparagraph 272-80(6A)(a)(i) in Schedule 2F

Omit “starting”, substitute “beginning”.

65   Paragraphs 272-80(6B)(a) and (b) and 272-85(5C)(a) and (b) in Schedule 2F

Omit “starting”, substitute “beginning”.

Division 2   Income Tax Assessment Act 1997

66   Subsection 415-15(6)

Repeal the subsection.

Schedule 5   Tax secrecy and transparency

Part 1   Main amendments

Taxation Administration Act 1953

1   At the end of Part 1A

Add:

3C Reporting of information about corporate tax entity with reported total income of $100 million or more

(1) This section applies to an entity if:

(a) the entity is a corporate tax entity (within the meaning of the Income Tax Assessment Act 1997); and

(b) the entity has total income equal to or exceeding $100 million for an income year, according to information reported to the Commissioner in the entity’s income tax return (within the meaning of that Act) for the income year.

(2) The Commissioner must, as soon as practicable after the end of the income year, make publicly available the information mentioned in subsection (3).

(3) The information is as follows:

(a) the entity’s ABN (within the meaning of the Income Tax Assessment Act 1997) and name;

(b) the entity’s total income for the income year, according to information reported to the Commissioner in the entity’s income tax return (within the meaning of that Act) for the income year;

(c) the entity’s taxable income or net income (if any) for the income year, according to information reported to the Commissioner in that income tax return;

(d) the entity’s income tax payable (if any) for the financial year corresponding to the income year, according to information reported to the Commissioner in that income tax return.

(4) Subsection (5) applies if:

(a) the entity gives the Commissioner a notice in writing that the return mentioned in paragraph (3)(b) contains an error; and

(b) the notice contains information that corrects the error.

(5) The Commissioner may at any time make the information mentioned in paragraph (4)(b) publicly available, in accordance with subsection (2), in order to correct the error.

(6) To avoid doubt, if the Commissioner considers that information made publicly available under subsection (2) fails to reflect all of the information required to be made publicly available under that subsection, the Commissioner may at any time make publicly available other information in order to remedy the failure.

3D Reporting of information about entity with MRRT payable

(1) This section applies to an entity if the entity has an amount of MRRT payable for an MRRT year, according to information reported to the Commissioner in the entity’s MRRT return for the MRRT year.

(2) The Commissioner must, as soon as practicable after the end of the MRRT year, make publicly available the information mentioned in subsection (3).

(3) The information is as follows:

(a) the entity’s ABN (within the meaning of the Income Tax Assessment Act 1997) and name;

(b) the entity’s MRRT payable for the MRRT year, according to information reported to the Commissioner in the entity’s MRRT return for the MRRT year.

(4) Subsection (5) applies if:

(a) the entity gives the Commissioner a notice in writing that the return mentioned in paragraph (3)(b) contains an error; and

(b) the notice contains information that corrects the error.

(5) The Commissioner may at any time make the information mentioned in paragraph (4)(b) publicly available, in accordance with subsection (2), in order to correct the error.

(6) To avoid doubt, if the Commissioner considers that information made publicly available under subsection (2) fails to reflect all of the information required to be made publicly available under that subsection, the Commissioner may at any time make publicly available other information in order to remedy the failure.

(7) In this section:

MRRT return has the meaning given by the Income Tax Assessment Act 1997.

MRRT year has the meaning given by section 300-1 of the Minerals Resource Rent Tax Act 2012.

3E Reporting of information about entity with PRRT payable

(1) This section applies to an entity if the entity has an amount of PRRT payable for a year of tax, according to information reported to the Commissioner in the entity’s PRRT return for the year of tax.

(2) The Commissioner must, as soon as practicable after the end of the year of tax, make publicly available the information mentioned in subsection (3).

(3) The information is as follows:

(a) the entity’s ABN (within the meaning of the Income Tax Assessment Act 1997) and name;

(b) the PRRT payable by the entity in respect of the year of tax, according to information reported to the Commissioner in the entity’s PRRT return for the year of tax.

(4) Subsection (5) applies if:

(a) the entity gives the Commissioner a notice in writing that the return mentioned in paragraph (3)(b) contains an error; and

(b) the notice contains information that corrects the error.

(5) The Commissioner may at any time make the information mentioned in paragraph (4)(b) publicly available, in accordance with subsection (2), in order to correct the error.

(6) To avoid doubt, if the Commissioner considers that information made publicly available under subsection (2) fails to reflect all of the information required to be made publicly available under that subsection, the Commissioner may at any time make publicly available other information in order to remedy the failure.

(7) In this section:

PRRT return means a return under section 59 or 60 of the Petroleum Resource Rent Tax Assessment Act 1987.

year of tax has the meaning given by the Petroleum Resource Rent Tax Assessment Act 1987.

2   After section 355-45 in Schedule 1

Insert:

355-47 Exception - disclosure of periodic aggregate tax information

(1) Section 355-25 does not apply if the information is *periodic aggregate tax information.

Note: A defendant bears an evidential burden in relation to the matters in this subsection: see subsection 13.3(3) of the Criminal Code.

(2) Periodic aggregate tax information is information that:

(a) specifies the total amount collected or assessed by the Commissioner during a period, or predicted by the Commissioner to be collected or assessed by the Commissioner during a period, in respect of:

(i) tax imposed under a particular Act or particular Acts; or

(ii) if an Act imposes duties of excise - a type of duty of excise imposed under that Act; or

(iii) if an Act imposes duties of customs - a type of duty of customs imposed under that Act; and

(b) does not identify, nor is reasonably capable of being used to identify, an individual.

3   Subsection 355-50(1) in Schedule 1 (note)

Omit “Note:”, substitute “Note 1:”.

4   At the end of subsection 355-50(1) in Schedule 1

Add:

Note 2: An example of a duty mentioned in paragraph (b) is the duty to make available information under sections 3C, 3D and 3E.

5   Subsection 355-65(4) in Schedule 1 (table item 7)

Repeal the item, substitute:

6   After section 355-170 in Schedule 1

Insert:

355-172 Exception - disclosure of periodic aggregate tax information

Section 355-155 does not apply if the information is *periodic aggregate tax information.

Note: A defendant bears an evidential burden in relation to the matters in this section: see subsection 13.3(3) of the Criminal Code.

Part 2   Consequential amendments

Income Tax Assessment Act 1997

7   Subsection 995-1(1)

Insert:

periodic aggregate tax information has the meaning given by subsection 355-47(2) in Schedule 1 to the Taxation Administration Act 1953.

Part 3   Application of amendments

8   Application of amendments

(1) Subject to this item, the amendments made by this Schedule apply to:

(a) the 2013-14 income year and later income years; and

(b) the 2013-2014 MRRT year and later MRRT years; and

(c) the year of tax (within the meaning of the Petroleum Resource Rent Tax Assessment Act 1987) starting on 1 July 2013 and later years of tax.

(2) The amendment made by item 5 of this Schedule applies to records and disclosures made on or after the commencement of that item (whenever the information was obtained).

Schedule 6   Petroleum resource rent tax

Petroleum Resource Rent Tax Assessment Act 1987

1   Subsection 37(1)

Omit “liable to be made”, substitute “to the extent that they are made”.

2   Subsection 37(1)

Omit “liable to be paid by the person in relation to”, substitute “paid by the person, to the extent that the payment relates to”.

3   At the end of section 37

Add:

(3) For the purposes of this section, a person is taken to make a payment when the person becomes liable to make the payment.

4   Subsection 38(1)

Omit “liable to be made”, substitute “to the extent that they are made”.

5   Subsection 38(1)

Omit “liable to be paid by the person in relation to”, substitute “paid by the person, to the extent that the payment relates to”.

6   At the end of section 38

Add:

(3) For the purposes of this section, a person is taken to make a payment when the person becomes liable to make the payment.

7   Subsection 39(1)

Omit “liable to be made”, substitute “to the extent that they are made”.

8   At the end of section 39

Add:

(5) For the purposes of this section, a person is taken to make a payment when the person becomes liable to make the payment.

9   Subsection 41(1)

Repeal the subsection, substitute:

(1) If a person (the eligible person ) makes or made a payment wholly or partly to procure the carrying on or providing of operations, facilities or other things of a kind referred to in section 37, 38 or 39 by another person, then:

(a) for the purposes of this Act:

(i) the operations, facilities or other things are taken to have been carried on or provided by the eligible person and not by the other person; and

(ii) to the extent that the payment is to procure the carrying on or providing of the operations, facilities or other things - it is taken to have been made by the eligible person in carrying on or providing the operations, facilities or other things; and

(b) if subsection (1A) does not apply to the other person in relation to the payment - to the extent that the payment is to procure the carrying on or providing of the operations, facilities or other things, the payment is taken, for the purposes of sections 37, 38, 39 and 44, to have the same character and nature as the operations, facilities or other things procured; and

(c) if subsection (1A) applies to the other person in relation to the payment - to the extent that:

(i) the payment is to procure the carrying on or providing of the operations, facilities or other things; and

(ii) the payment relates to use of property on which the other person has incurred capital expenditure;

the payment is taken, for the purposes of those sections, to have the same character and nature as the operations, facilities or other things procured; and

(d) if subsection (1A) applies to the other person in relation to the payment - to the extent that:

(i) the payment is to procure the carrying on or providing of the operations, facilities or other things; and

(ii) the payment does not relate to use of property on which the other person has incurred capital expenditure;

the payment is taken, for the purposes of those sections, to be of the same amount, and to have the same character and nature, as the expenditure the other person incurred in carrying on or providing the operations, facilities or other things procured.

Note: If the payment is excluded expenditure, it will not be exploration expenditure under section 37, general project expenditure under section 38 or closing-down expenditure under section 39. However, if paragraph (1)(d) applies to the payment, the amount taken to be excluded expenditure may be reduced under subsection (1D) of this section.

(1A) This subsection applies to the other person in relation to a payment if, at the time the payment is made, the other person:

(a) holds an interest in the petroleum project to which the operations, facilities or other things relate; or

(b) is connected (within the meaning of section 328-125 of the Income Tax Assessment Act 1997) with the eligible person.

(1B) The amount of the other person’s expenditure referred to in paragraph (1)(d) is taken not to exceed so much of the amount of the eligible person’s payment as:

(a) is a payment to procure the carrying on or providing of the operations, facilities or other things; and

(b) does not relate to use of property on which the other person has incurred capital expenditure.

(1C) If:

(a) subsection (1A) applies to the other person in relation to the payment; and

(b) the other person, to any extent, procures for:

(i) the eligible person; or

(ii) the eligible person and one or more persons who hold an interest in the project;

the operations, facilities or other things from a third person who is connected (within the meaning of section 328-125 of the Income Tax Assessment Act 1997) with the other person;

the references in paragraph (1)(d) and subsection (1B) to the other person’s expenditure are taken (to the extent that carrying on or providing the operations, facilities or other things was procured from the third person) to be references to the third person’s expenditure.

(1D) If the other person’s expenditure is reduced because of subsection (1B), sections 37, 38, 39 and 44 apply in relation to that expenditure as if it were reduced to the same extent.

10   At the end of section 41

Add:

(3) For the purposes of this section, a person is taken to make a payment when the person becomes liable to make the payment.

11   Application of amendments

(1) The amendments made by this Schedule apply, in relation to a petroleum project, to any payment made by a person on or after:

(a) the applicable commencement date in relation to the project, unless paragraph (b) or (c) applies; or

(b) the starting base day for the person’s interest in the project under subsection 45(5) of the Petroleum Resource Rent Tax Assessment Act 1987, if:

(i) the project is an onshore petroleum project or the North West Shelf project, or an onshore petroleum project is a pre-combination project in relation to the project; and

(ii) item 2 or 3 of the table in that subsection sets out that starting base day; or

(c) the day provided under subclause 15(3) or (4) of Schedule 2 to that Act, in relation to the asset to which the payment relates, if:

(i) the project is an onshore petroleum project or the North West Shelf project, or an onshore petroleum project is a pre-combination project in relation to the project; and

(ii) the person chose, under Part 2 of that Schedule, the book value approach or the market value approach for the person’s interest in the project; and

(iii) the payment is interim expenditure, within the meaning of clause 15 of that Schedule, in relation to that asset.

(2) Despite subitem (1), the amendments made by items 9 and 10 do not apply in relation to a payment by a person that was made:

(a) before 1 July 2012; and

(b) in relation to a petroleum project for which the person has been required under section 59 of the Petroleum Resource Rent Tax Assessment Act 1987 to furnish a return before 14 December 2012.

(3) Despite subitem (1), the amendments made by items 9 and 10 apply in relation to a payment by a person that was made:

(a) before 1 July 2013; and

(b) in relation to a petroleum project for which the person has not been required under section 59 of the Petroleum Resource Rent Tax Assessment Act 1987 to furnish a return before 14 December 2012;

as if subsection 41(1A) of that Act as amended by this Schedule did not apply, in relation to the payment, to the other person referred to in subsection 41(1) of that Act as so amended.

(4) For the purposes of this item, a person is taken to make a payment when the person becomes liable to make the payment.

Schedule 7   Removing CGT discount for foreign individuals

Income Tax Assessment Act 1997

1   Subsection 115-30(1)

Omit “and 115-45”, substitute “, 115-45, 115-105, 115-110 and 115-115”.

2   After subsection 115-30(1)

Insert:

(1A) For the purposes of sections 115-105, 115-110 and 115-115, item 2 of the table in subsection (1) applies in relation to all *replacement-asset roll-overs, including those covered by paragraph 115-34(1)(c).

3   Subparagraph 115-100(a)(i)

After “individual”, insert “and neither section 115-105 nor 115-110 (about foreign or temporary residents) applies to the gain”.

4  Subparagraph 115-100(a)(ii)

After “*FHSA trust)”, insert “and section 115-120 (about foreign or temporary residents) does not apply to the gain”.

5   At the end of section 115-100

Add:

; or (c) the percentage resulting from section 115-115 if section 115-105 or 115-110 applies to the gain; or

(d) the percentage resulting from section 115-120 if that section applies to the gain.

6   At the end of Subdivision 115-B

Add:

115-105 Foreign or temporary residents - individuals with direct gains

Object

(1) The object of this section (with section 115-115) is to adjust the discount percentage so as to deny you a discount to the extent that you accrued a *capital gain while a foreign resident or *temporary resident.

When this section applies

(2) This section applies to a *discount capital gain if:

(a) you are an individual; and

(b) you *acquire a *CGT asset; and

(c) you make the discount capital gain from a *CGT event happening in relation to the CGT asset; and

(d) the period (the discount testing period ):

(i) starting on the day you acquired the CGT asset; and

(ii) ending on the day the CGT event happens;

ends after 8 May 2012; and

(e) you were a foreign resident or *temporary resident during some or all of so much of that period as is after 8 May 2012.

Note: Section 115-30 has special rules about when assets are acquired.

Changed residency status

(3) For the purposes of this section and section 115-115, if:

(a) another individual owned the *CGT asset on a particular day before the discount testing period ends; and

(b) on that day, that individual was one of the following (that individual’s residency status ):

(i) an Australian resident (but not a *temporary resident);

(ii) a temporary resident;

(iii) a foreign resident; and

(c) section 115-30 treats you as having *acquired the CGT asset when that individual, or an earlier owner of the CGT asset, acquired it;

you are treated as having the same residency status on that day as that individual had on that day.

115-110 Foreign or temporary residents - individuals with trust gains

Object

(1) The object of this section (with section 115-115) is to adjust the discount percentage so as to deny you a discount for a *capital gain you make because of section 115-215 to the extent that the gain was accrued while you were a foreign resident or *temporary resident.

When this section applies

(2) This section applies to a *discount capital gain if:

(a) you are an individual and a beneficiary of a trust ( your trust ); and

(b) because of section 115-215, Division 102 applies to you as if you had made the discount capital gain on a particular day ( your gain day ) for a *capital gain (the relevant trust gain ) of the trust estate; and

(c) the period (the discount testing period ) worked out from the following table ends after 8 May 2012; and

(d) you were a foreign resident or *temporary resident during some or all of so much of that period as is after 8 May 2012.

Note: Section 115-30 has special rules about when assets (including membership interests in trusts) are acquired.

Changed residency status

(3) For the purposes of this section and section 115-115, if:

(a) your trust is a *fixed trust and another individual owned your *membership interest in your trust on a particular day before the discount testing period ends; and

(b) on that day, that individual was one of the following (that individual’s residency status ):

(i) an Australian resident (but not a *temporary resident);

(ii) a temporary resident;

(iii) a foreign resident; and

(c) section 115-30 treats you as having *acquired your membership interest in your trust when that individual, or an earlier owner of that membership interest, acquired it;

you are treated as having the same residency status on that day as that individual had on that day.

115-115 Foreign or temporary residents - percentage for individuals

(1) This section applies if section 115-105 or 115-110 applies to a *discount capital gain.

Periods starting after 8 May 2012

(2) If the discount testing period starts after 8 May 2012, the following (expressed as a percentage) is the percentage resulting from this section:

(Number of days during discount testing period that you were an Australian resident (but not a *temporary resident)) / (2 x Number of days in discount testing period)

Note 1: The percentage will be 0% if you were a foreign resident or temporary resident during all of the discount testing period.

Note 2: Subsection 115-105(3) or 115-110(3) may change your residency status for this formula.

Periods starting earlier - Australian residents

(3) If:

(a) the discount testing period starts on or before 8 May 2012; and

(b) you were an Australian resident (but not a *temporary resident) on 8 May 2012;

the following (expressed as a percentage) is the percentage resulting from this section:

(Number of days in discount testing period) - (Number of apportionable days that you were a foreign resident or *temporary resident) / (2 x Number of days in discount testing period)

where:

apportionable day means a day, after 8 May 2012, during the discount testing period.

Note: Subsection 115-105(3) or 115-110(3) may change your residency status for this formula.

Periods starting earlier - other residents may choose market value

(4) The percentage resulting from this section is worked out from the following table if:

(a) the discount testing period starts on or before 8 May 2012; and

(b) you were a foreign resident or *temporary resident on 8 May 2012; and

(c) the most recent *acquisition (before the *CGT event) of the *CGT asset happened on or before 8 May 2012; and

(d) the CGT asset’s *market value on 8 May 2012 exceeds the amount that was its *cost base at the end of that day; and

(e) you choose for this subsection to apply.

Note 1: The CGT event and CGT asset are those expressly or impliedly referred to in section 115-105 or 115-110.

Note 2: Section 115-30 has special rules about when assets are acquired.

(5) For the purposes of table item 2 in subsection (4), the following (expressed as a percentage) is the percentage resulting from this section:

excess formula
          

where:

apportionable day means a day, after 8 May 2012, during the discount testing period.

eligible resident means an Australian resident who is not a *temporary resident.

excess means the excess from paragraph (4)(d).

shortfall means the amount that the excess falls short of the amount of the *discount capital gain.

Note: Subsection 115-105(3) or 115-110(3) may change your residency status for this formula.

Periods starting earlier - other residents not choosing market value

(6) If:

(a) the discount testing period starts on or before 8 May 2012; and

(b) you were a foreign resident or *temporary resident on 8 May 2012; and

(c) subsection (4) does not apply;

the following (expressed as a percentage) is the percentage resulting from this section:

(Number of apportionable days that you were an Australian resident (but not a *temporary resident)) / (2 x Number of days in discount testing period)

where:

apportionable day means a day, after 8 May 2012, during the discount testing period.

Note 1: The percentage will be 0% if you were a foreign resident or temporary resident on each of the apportionable days.

Note 2: Subsection 115-105(3) or 115-110(3) may change your residency status for this formula.

115-120 Foreign or temporary residents - trusts with certain gains

(1) The object of this section is to adjust the discount percentage so as to deny a trustee a discount for a *capital gain for which the trustee is liable:

(a) to be assessed; and

(b) to pay tax;

under section 98 of the Income Tax Assessment Act 1936 in relation to the trust estate in respect of a beneficiary to the extent that the beneficiary was a foreign resident or *temporary resident.

(2) This section applies to a *discount capital gain of a trust estate if:

(a) you are the trustee of that trust; and

(b) section 115-220 applies to you in relation to the discount capital gain and a beneficiary of the trust who is an individual.

(3) The percentage resulting from this section is the same as the *discount percentage for the corresponding *discount capital gain the beneficiary would have made for the purposes of Division 102 had section 115-215 applied to the beneficiary.

Schedule 8   Tax exemption for payments under Defence Abuse Reparation Scheme

Income Tax Assessment Act 1997

1   Section 11-15 (table item headed "defence")

Before:

insert:

2   Section 51-5 (at the end of the table)

Add:

3   Application of amendments

The amendments made by this Schedule apply in relation to the 2012-13 income year and later income years.

Schedule 9   GST-free treatment for National Disability Insurance Scheme funded supports

A New Tax System (Goods and Services Tax) Act 1999

1   After section 38-35

Insert:

38-38 Disability support provided to NDIS participants

A supply is GST-free if the supply:

(a) is a supply to a participant (within the meaning of the National Disability Insurance Scheme Act 2013) for whom a participant’s plan is in effect under section 37 of that Act; and

(b) is a supply of one or more of the reasonable and necessary supports specified in the statement included, under subsection 33(2) of that Act, in the participant’s plan; and

(c) is made under a written agreement, between the supplier and the participant or another person, that:

(i) identifies the participant; and

(ii) states that the supply is a supply of one or more of the reasonable and necessary supports specified in the statement included, under subsection 33(2) of that Act, in the participant’s plan; and

(d) is of a kind that the *Disability Services Minister has determined in writing.

2   At the end of section 177-10

Add:

(5) The *Disability Services Minister may, by legislative instrument, make a determination for the purposes of paragraph 38-38(d).

(6) Despite subsection 12(2) of the Legislative Instruments Act 2003, determinations made under subsection (5) of this section may be expressed to take effect from a date before the determinations are registered under that Act.

3   Section 195-1

Insert:

Disability Services Minister means the Minister administering the National Disability Insurance Scheme Act 2013.

4   Application of amendments

The amendments made by this Schedule apply in relation to supplies made on or after the commencement of section 37 of the National Disability Insurance Scheme Act 2013.

Schedule 10   Deductible gift recipients

Part 1   Main amendments

Income Tax Assessment Act 1997

1   Subsection 30-25(2) (after table item 2.2.4)

Insert:

2   Subsection 30-25(2) (table item 2.2.40, column headed "Special conditions")

Omit “and before 2 August 2013”.

3   Subsection 30-45(2) (after table item 4.2.4)

Insert:

4   Subsection 30-45(2) (after table item 4.2.7)

Insert:

5   Subsection 30-80(2) (after table item 9.2.10)

Insert:

6   Section 30-105 (after table item 13.2.3A)

Insert:

7   Section 30-315 (after table item 9AA)

Insert:

8   Section 30-315 (after table item 9A)

Insert:

9   Section 30-315 (after table item 23)

Insert:

10   Section 30-315 (after table item 65)

Insert:

10A   Section 30-315 (after table item 111A)

Insert:

11   Section 30-315 (after table item 118B)

Insert:

Tax Laws Amendment (2011 Measures No. 2) Act 2011

12   Part 3 of Schedule 1

Repeal the Part.

Part 2   The Charlie Perkins Scholarship Trust

Income Tax Assessment Act 1997

13   Subsection 30-25(2) (table item 2.2.39, column headed "Special conditions")

Omit “and before 2 August 2013”.

14   Subsection 30-80(2) (table item 9.2.28, column headed "Special conditions")

Omit “and before 2 August 2013”.

Tax Laws Amendment (Special Conditions for Not-for-profit Concessions) Act 2013

15   Part 1 of Schedule 1 (amendment of the Tax Laws Amendment (2011 Measures No. 2) Act 2011 )

Repeal the amendment and the heading.

Schedule 11  

Part 1   Amendments commencing after the Australian Charities and Not-for-profits Commission Act 2012

Income Tax Assessment Act 1997

1   At the end of section 50-1

Add:

Note 3: In all cases the exemption is subject to the special condition in section 50-47 (about an entity that is an ACNC type of entity).

2   After section 50-45

Insert:

50-47 Special condition for all items

An entity that:

(a) is covered by any item; and

(b) is an *ACNC type of entity;

is not exempt from income tax unless the entity is registered under the Australian Charities and Not-for-profits Commission Act 2012.

3   At the end of subsection 50-110(5)

Add:

The entity must also satisfy section 50-47, if the entity is an *ACNC type of entity.

Income Tax (Transitional Provisions) Act 1997

4   Section 50-50

Omit “, as amended by Schedules 1 and 2 to the Tax Laws Amendment (Special Conditions for Not-for-profit Concessions) Act 2012”.

Part 2   Amendment commencing after Schedule 1 to the Tax Laws Amendment (2012 Measures No. 6) Act 2013

Income Tax Assessment Act 1997

5   Paragraph 59-50(6)(b)

Omit “distributing bodies”, substitute “Indigenous holding entities”.

6   At the end of subsection 59-50(6)

Add:

; or (c) a *registered charity.

Income Tax (Transitional Provisions) Act 1997

7   Part 2-15 (heading)

Repeal the heading, substitute:

Part 2-15 - Non-assessable income

8   At the end of Part 2-15

Add:

Division 59 - Particular amounts of non-assessable non-exempt income

Table of Subdivisions

59-N Native title benefits

Subdivision 59-N - Native title benefits

Table of sections

59-50 Indigenous holding entities

59-50 Indigenous holding entities

Without limiting subsection 59-50(6) of the Income Tax Assessment Act 1997, an entity was an Indigenous holding entity at a time if:

(a) the time occurred:

(i) during an income year starting on or after 1 July 2008; and

(ii) before the commencement of Chapter 2 of the Australian Charities and Not-for-profits Commission Act 2012; and

(b) at that time, the entity was endorsed under Subdivision 50-B of the Income Tax Assessment Act 1997 as exempt from income tax because the entity was covered by item 1.1, 1.5, 1.5A or 1.5B of the table in section 50-5 of that Act, as in force at that time.

9   Application of amendments

The amendments made by this Part apply in relation to income years starting on or after 1 July 2008.

Part 3   Fringe Benefits Tax

Fringe Benefits Tax Assessment Act 1986

10   Subsection 5B(1E) (method statement, paragraph (d) of step 2)

Omit “by non-profit societies and associations”, substitute “by societies and associations that are rebatable employers”.

11   Subparagraph 57A(2)(b)(iii)

Repeal the subparagraph, substitute:

(ii) a hospital carried on by a society or association that is a rebatable employer;

12   Subsection 57A(4)

Repeal the subsection, substitute:

(4) A benefit provided in respect of the employment of an employee is an exempt benefit if the employer of the employee is a hospital carried on by a society or association that is a rebatable employer.

13   Section 65J (heading)

Repeal the heading, substitute:

65J Rebate for certain not-for-profit employers etc.

14   Subsections 65J(1) and (1A)

Repeal the subsections, substitute:

Rebatable employer

(1) An employer is a rebatable employer for a year of tax if the employer:

(a) is exempt from income tax at any time during the year of tax under any of the provisions set out in the following table; and

(b) satisfies the special conditions (if any) set out in the following table.

Note: Subsection (3) affects the kind of employers that may be considered to be an institution of government.

15   Subsection 65J(2)

Repeal the subsection.

16   Subsection 65J(2A) (definition of rebatable days in year )

Omit “paragraphs (1)(a) to (l) (inclusive)”, substitute “the table items in subsection (1)”.

17   Subsection 65J(5)

Repeal the subsection, substitute:

(5) A society, association or club is not covered by table item 4, 5, 8, 9, 10, 11 or 12 in subsection (1) for a year of tax if it is:

(a) an incorporated company where all the stock or shares in the capital of the company is or are beneficially owned by:

(i) the Commonwealth, a State or a Territory; or

(ii) an authority or institution of the Commonwealth, a State or a Territory; or

(b) an incorporated company where the company is limited by guarantee and the interests and rights of the members in or in relation to the company are beneficially owned by:

(i) the Commonwealth, a State or a Territory; or

(ii) an authority or institution of the Commonwealth, a State or a Territory.

18   Part XA (heading)

Omit “ charitable institutions ”, substitute “ registered charities ”.

19   Section 123E (heading)

Omit “ charitable institution ”, substitute “ registered charity ”.

20   Subsections 123E(1) and (2)

Omit “a charitable institution covered by paragraph 65J(1)(baa)” (wherever occurring), substitute “a registered charity covered by table item 1 in subsection 65J(1)”.

21   Paragraph 123E(2)(a)

Repeal the paragraph, substitute:

(a) is a registered charity covered by column 1 of that table item; and

(aa) satisfies the special conditions set out in that table item (other than the condition relating to endorsement under subsection (1) of this section); and

22   Subsection 135Q(1) (note)

Omit “charitable institutions”, substitute “registered charities”.

23   Subsection 136(1)

Insert:

rebatable employer has the meaning given by section 65J.

24   Paragraph 140(1B)(c)

Repeal the paragraph, substitute:

(c) a hospital carried on by a society or association that is a rebatable employer;

25   Subparagraph 140(1C)(b)(iii)

Repeal the subparagraph, substitute:

(ii) a hospital carried on by a society or association that is a rebatable employer.

Taxation Administration Act 1953

26   Paragraphs 426-5(f) and 426-65(1)(f) in Schedule 1

Omit “a charitable institution covered by paragraph 65J(1)(baa)”, substitute “a registered charity covered by table item 1 in subsection 65J(1)”.

27   Application and transitional provisions

(1) The amendments made by this Part apply for the 2013-14 year of tax and later years of tax.

(2) However, those amendments apply to an entity for the 2014-15 year of tax and later years of tax if the entity is endorsed under subsection 123E(1) of the Fringe Benefits Tax Assessment Act 1986 immediately before the commencement of this Part.

(3) If:

(a) subitem (2) applies to an entity; and

(b) the entity’s endorsement mentioned in that subitem is in force at the end of the 2013-14 year of tax;

that endorsement has effect after the end of that year of tax as if it were an endorsement under subsection 123E(1) of that Act as amended by this Part.

Part 4   Updating indexation provisions

Income Tax Assessment Act 1997

28   Subsection 960-275(1A) (formula)

Repeal the formula, substitute:

(*Index number for the *quarter ending on the 31 of December just before the relevant income year) / (*index number for the *quarter ending on the previous 31 December)

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

29   Subsection 10A(5) (definition of current year )

Omit “31 March”, substitute “31 December”.

Superannuation Guarantee (Administration) Act 1992

30   Paragraph 9(1)(b)

Omit “March quarter” (wherever occurring), substitute “December quarter”.

31   Subsection 9(1) (note)

Repeal the note, substitute:

Note: The December quarter is a quarter beginning on 1 October.

32   Application of amendments

(1) The amendment made by item 28 applies in relation to working out the indexation factor for the 2013-14 income year and later income years.

(2) The amendment made by item 29 applies in relation to working out the indexation factor for the 2013-14 income year and later income years.

(3) The amendments made by items 30 and 31 apply in relation to working out the indexation factor for the 2013-14 year and later years.

Part 5   Other amendments

Income Tax Assessment Act 1936

33   Paragraph 23AG(1AA)(c)

Omit “50-50(c)”, substitute “50-50(1)(c)”.

34   Section 24AT (paragraphs (c) and (d) of the definition of excluded STB )

Omit “50-55(a)”, substitute “50-55(1)(a)”.

Income Tax Assessment Act 1997

35   Section 30-60

Repeal the section, substitute:

30-60 Gifts to a National Parks body or conservation body must satisfy certain requirements

You can deduct a gift that you make to an environmental institution covered by any of table items 6.2.1 to 6.2.12 or 6.2.22 in subsection 30-55(2) only if, at the time of making the gift:

(a) if the institution is not a *registered charity - the institution has agreed to give the *Environment Secretary, within a reasonable period after the end of the income year in which you made the gift, statistical information about gifts made to the institution during that income year; and

(b) the institution has a policy of not acting as a mere conduit for the donation of money or property to other entities.

36   Section 50-15 (at the end of the cell at table item 3.1, column headed "Special conditions")

Add:

37   Section 50-15 (cell at table item 3.2, column headed "Special conditions")

Repeal the cell, substitute:

38   Section 50-50

Omit “An entity covered by item 1.1 or 1.2”, substitute “(1) An entity covered by item 1.1”.

39   Paragraph 50-50(d)

Omit “Australia.”, substitute “Australia;”.

40   After paragraph 50-50(d) (before the notes)

Insert:

and the entity satisfies the conditions in subsection (2).

41   At the end of section 50-50

Add:

(2) The entity must:

(a) comply with all the substantive requirements in its governing rules; and

(b) apply its income and assets solely for the purpose for which the entity is established.

42   Section 50-55

Before “An”, insert “(1)”.

43   Paragraph 50-55(c)

Omit “resident.”, substitute “resident;”.

44   After paragraph 50-55(c) (before the note)

Insert:

and the entity satisfies the conditions in subsection (2).

45   At the end of section 50-55

Add:

(2) The entity must:

(a) comply with all the substantive requirements in its governing rules; and

(b) apply its income and assets solely for the purpose for which the entity is established.

46   Section 50-65

Before “A fund”, insert “(1)”.

47   Paragraph 50-65(b)

Omit “section 30-15.”, substitute “section 30-15;”.

48   After paragraph 50-65(b) (before the note)

Insert:

and the fund satisfies the conditions in subsection (2).

49   At the end of section 50-65

Add:

(2) The fund must:

(a) comply with all the substantive requirements in its governing rules; and

(b) apply its income and assets solely for the purpose for which the fund is established.

50   Section 50-70

Before “An”, insert “(1)”.

51   Paragraph 50-70(c)

Omit “resident.”, substitute “resident;”.

52   After paragraph 50-70(c) (before the note)

Insert:

and the entity satisfies the conditions in subsection (2).

53   At the end of section 50-70

Add:

(2) The entity must:

(a) comply with all the substantive requirements in its governing rules; and

(b) apply its income and assets solely for the purpose for which the entity is established.

54   At the end of subsection 50-72(1)

Add:

; and (c) complies with all the substantive requirements in its governing rules; and

(d) applies its income and assets solely for the purpose for which the fund is established.

55   Subsection 355-100(1) (table item 2)

Before “an *exempt entity”, insert “at any time during the income year”.

56   Application of amendments

(1) The amendments made by this Part (other than item 55) apply in relation to income years starting on or after the commencement of this Part.

(2) The amendment made by item 55 applies in relation to an R&D entity’s assessments for income years commencing on or after 1 July 2013.

(3) The amendment made by item 55 does not affect by implication the interpretation of the Income Tax Assessment Act 1997 in relation to assessments for earlier income years.