Tax Laws Amendment (2007 Measures No. 4) Act 2007 (143 of 2007)

Schedule 1   New foreign income tax offset rules

Part 4   Consequential and other amendments

Income Tax Assessment Act 1936

20   Subsection 6(1)

Insert:

passive income , in relation to a taxpayer, in relation to a year of income means:

(a) dividends (within the meaning of this section) and non-share dividends paid to the taxpayer in the year of income; or

(b) unit trust dividends (within the meaning of Division 6B or 6C) paid to the taxpayer in the year of income; or

(c) a distribution made to the taxpayer in the year of income that is taken to be a dividend because of section 47; or

(d) an amount that is taken to be a dividend paid to the taxpayer in the year of income because of section 47A or 108 or Division 7A of Part III; or

(e) interest income derived by the taxpayer in the year of income; or

(f) annuities derived by the taxpayer in the year of income; or

(g) income derived by the taxpayer by way of rent (within the meaning of Part X) in the year of income; or

(h) royalties derived by the taxpayer in the year of income; or

(i) an amount derived by the taxpayer in the year of income as consideration for the assignment, in whole or in part, of any copyright, patent, design, trade mark or other like property or right; or

(j) profits of a capital nature that accrued to the taxpayer in the year of income; or

(k) passive commodity gains that accrued to the taxpayer in the year of income; or

(l) an amount included in the assessable income of the taxpayer of the year of income under section 102AAZD, 456, 457, 459A or 529;

but does not include:

(m) an amount that arose from an asset necessarily held by the taxpayer in connection with an insurance business actively carried on by the taxpayer; or

(n) an amount included in the taxpayer's assessable income under Division 13A.