A New Tax System (Tax Administration) Act 1999 (179 of 1999)

Schedule 6   Shorter period of review (SPOR) taxpayers

Part 1   Income Tax Assessment Act 1936

2   After section 6AC

Insert:

6AD Shorter period of review taxpayer

(1) For the purposes of this Act, a taxpayer is a shorter period of review taxpayer or a SPOR taxpayer for a year of income if the taxpayer is an individual, other than an individual in the capacity of a trustee, who, for that year of income:

(a) satisfies the SPOR income test under subsection (2); and

(b) satisfies the SPOR deduction test under subsection (3); and

(c) is not ineligible to be a SPOR taxpayer under subsection (4).

(2) A taxpayer satisfies the SPOR income test for a year of income if the taxpayer's assessable income for that year of income consists only of one or more of the following amounts:

(a) an amount that is salary or wages for the purposes of Subdivision AB of Division 17 of Part III;

(b) an amount of interest payable by a financial institution or a government body (as defined by section 202A);

(c) an amount that is a dividend, if the company that paid it was a resident, and a listed public company (as defined by subsection 995-1(1) of the Income Tax Assessment Act 1997) whose shares were listed for quotation in the official list of the Australian Stock Exchange Limited, at the earliest of the following times:

(i) if the liability to pay the dividend arose when the dividend was declared - that time;

(ii) when the dividend became due and payable;

(iii) when the dividend was paid.

(3) A taxpayer satisfies the SPOR deduction test for a year of income if the only amounts that are deducted from the taxpayer's assessable income in the Commissioner's determination of the amount of the taxpayer's taxable income (if any) for that year of income are one or more of the following amounts:

(a) an amount to the extent that it was expenditure incurred for managing tax affairs as mentioned in paragraph 25-5(1)(a) of the Income Tax Assessment Act 1997;

(b) an amount that was paid in respect of:

(i) an account-keeping fee charged by a financial institution; or

(ii) a tax imposed under a law of the Commonwealth, of a State or of a Territory in relation to an account kept with such an institution (for example, financial institutions duty, debits tax or a similar tax);

(c) an amount of a gift of money, or an amount of a contribution of money, to which item 1, 2 or 3 in the table in section 30-15 of the Income Tax Assessment Act 1997 applies.

(4) A taxpayer is ineligible to be a SPOR taxpayer for a year of income if any of the following circumstances exist in relation to the taxpayer for that year of income:

(a) the taxpayer is not a resident of Australia for the whole of that year of income;

(b) the taxpayer is entitled to a credit under Division 18 or 18A of Part III;

(c) an amount of expenditure incurred to an associate (as defined by subsection 318(1)) was deducted from the taxpayer's assessable income in the Commissioner's determination of the amount of the taxpayer's taxable income (if any);

(d) the taxpayer derived income from an associate (as defined by subsection 318(1));

(e) the taxpayer added up a capital gain or capital loss made during that year of income under step 1 of the method statement in subsection 102-5(1) or 102-10(1) of the Income Tax Assessment Act 1997;

(f) the taxpayer derived an amount of income that is exempt from tax under section 23AF or 23AG.