Australia: TimeBase LawOne Weekly Email Report - Part 3
Last Updated: 17 January 2012


Tax Laws Amendment (2011 Measures No. 6) Act 2011 (Act 129/2011)

Assent

3/11/2011 Gazette No GN 45, 16 November 2011, p 2699

Commencement

1/07/2015 Schedule 3, Part 3, Division 3

1/07/2014 Schedule 3, Part 3, Division 2

1/07/2013 Schedule 3, Part 3, Division 1

3/11/2011 Schedule 3, Part 2 - The day this Act receives the Royal Assent

22/02/2011 Schedule 3, Part 1

28/12/2011 Schedule 2, Part 2 - The later of:
(a) immediately after the commencement of the provision(s) covered by table item 3; and
(b) the same time as item 4 of Schedule 1 to the Acts Interpretation Amendment Act 2011 commences.
However, the provision(s) do not commence at all if the event mentioned in paragraph (b) does not occur - both to be proclaimed

3/11/2011 Schedule 2, Part 1 - The day this Act receives the Royal Assent.

3/11/2011 Schedule 1 - The day this Act receives the Royal Assent

3/11/2011 Sections 1 to 3 and anything in this Act not elsewhere covered by this table - The day this Act receives the Royal Assent

Amends

Fringe Benefits Tax Assessment Act 1986

Income Tax Assessment Act 1997

Summary

Outer regional and remote payment
Schedule 1 to this Act amends the Income Tax Assessment Act 1997 to ensure that the outer regional and remote payment (OR&R payment) made under the Better Start for Children with Disability initiative is not subject to income tax.
Date of effect: This measure applies to payments made in the 2011-12 income year and later income years.
Extension of fringe benefits tax exemption for fly-in fly-out arrangements
Schedule 2 to this Act amends the Fringe Benefits Tax Assessment Act 1986 to provide an exemption from fringe benefits tax for transport, from an employee's usual place of residence to their usual place of employment, where the employee is an Australian resident employed in a remote area overseas, under what is commonly known as a fly-in fly-out arrangement.
Date of effect: These amendments apply to fringe benefits provided after 1 July 2009.
Deductible gift recipients
Schedule 3 to this Act amends the Income Tax Assessment Act 1997 to update the list of deductible gift recipients (DGRs) by adding two entities, (the New Zealand Government's Christchurch Earthquake Appeal Trust and the Cancer Australia Gift Fund) as DGRs, changing the name of one entity, and removing two other entities from the list.
Date of effect: The listing of the New Zealand Government's Christchurch Earthquake Appeal Trust applies to gifts made after 21 March 2011 and before 22 March 2013. The listing of the Cancer Australia Gift Fund applies to gifts made after 8 June 2011.

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Higher Education Legislation Amendment (Student Services and Amenities) Act 2011 (Act 130/2011)

Assent

3/11/2011 Gazette No GN 45, 16 November 2011, p 2699

Commencement

1/01/2012 Schedule 1 - A single day to be fixed by Proclamation - Legislative Instrument Number F2011L02499

3/11/2011 Sections 1 to 3 and anything in this Act not elsewhere covered by this table - The day this Act receives the Royal Assent.

Amends

Higher Education Support Act 2003

Income Tax Assessment Act 1936

Summary

This Act will amend the Higher Education Support Act 2003 to allow higher education providers to charge a compulsory student services and amenities fee. The fee will be capped at $250 per student per annum (indexed to $254 in 2011, and thereafter indexed annually). The Act provides for the establishment of a new component of the Higher Education Loan Program (HELP): Services and Amenities- HELP (SA-HELP), which will provide eligible students with an option to access a loan for the fee through SA-HELP if they wish. In addition, the Act will require higher education providers that receive funding for student places under the Commonwealth Grant Scheme, to comply with new benchmarks from 2011 onwards, for the provision of information on and access to basic student support services of a non-academic nature; and requirements to ensure the provision of student representation and advocacy.

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Tax Laws Amendment (2011 Measures No. 7) Act 2011 (Act 147/2011)

Assent

29/11/2011 Gazette No GN 48, 7 December 2011, p 2873

Commencement

29/11/2011 Schedule 9 - The day this Act receives the Royal Assent.

29/11/2011 Schedule 8, Part 2 - The day this Act receives the Royal Assent.

1/01/2012 Schedule 8, Part 1, Division 3

1/07/2012 Schedule 8, Part 1, Division 2

1/01/2012 Schedule 8, Part 1, Division 1

29/11/2011 Schedules 5 to 7 - The day this Act receives the Royal Assent.

30/11/2011 Schedule 4 - The day after this Act receives the Royal Assent.

29/11/2011 Schedule 3 - The day this Act receives the Royal Assent.

1/07/2016 Schedule 2, Part 2

29/11/2011 Schedule 2, Part 1 - The day this Act receives the Royal Assent.

29/11/2011 Schedule 1 - The day this Act receives the Royal Assent.

29/11/2011 Sections 1 to 4 and anything in this Act not elsewhere covered by this table - The day this Act receives the Royal Assent.

Amends

Tax Laws Amendment (2009 Measures No. 6) Act 2010

A New Tax System (Australian Business Number) Act 1999

Income Tax Assessment Act 1936

Banking Act 1959

Tax Laws Amendment (Taxation of Financial Arrangements) Act 2009

Taxation Administration Act 1953

Income Tax Rates Act 1986

Income Tax Assessment Act 1997

Summary

Removing tax issues facing special disability trusts
Schedule 1 to this Act amends the Income Tax Assessment Act 1997 to provide:
- a capital gains tax (CGT) exemption for an asset transferred into a special disability trust (SDT) for no consideration;
- a CGT main residence exemption for a trustee of an SDT;
- a CGT exemption for a recipient of the principal beneficiary's main residence, if their ownership interest ends within two years of the principal beneficiary's death; and
" equivalent taxation treatment amongst SDTs established under different Acts.
Pacific Seasonal Workers — reduction in marginal tax rate
Schedule 2 to this Act amends the Income Tax Rates Act 1986 to reduce the lowest marginal tax rate for workers participating in the Pacific Seasonal Worker Pilot Scheme (Scheme) from 29 per cent to 15 per cent. All other tax brackets for participants in the Scheme will remain unchanged. This change only applies to non-residents who hold a Special Program Visa (subclass 416) and who are employed by an 'Approved Employer' under the Scheme. Tax rates for other non-residents remain unchanged.
This measure is designed to achieve two things, namely, to address equity issues associated with the high effective tax rate that currently applies to participants in the Scheme and to deliver better remittance outcomes for participants in the Scheme.
Taxation of financial arrangements and pay as you go instalments
Schedule 3 to this Act amends the Taxation Administration Act 1953 so that instalment income of a taxpayer who is required to apply Division 230 of the Income Tax Assessment Act 1997 to their financial arrangements also includes their net gains from their Division 230 financial arrangements (to the extent the gains equal or exceed the losses) as worked out under the taxation of financial arrangements (TOFA) provisions.
Commissioner's discretion to extend the time for notifying taxation of financial arrangements transitional elections
Schedule 4 to this Act amends the Tax Laws Amendment (Taxation of Financial Arrangements) Act 2009 (TOFA Act) to give the Commissioner of Taxation (Commissioner) a limited discretion to extend the time for a taxpayer to notify the Commissioner of the making of the transitional election to apply Division 230 of the Income Tax Assessment Act 1997 and related consequential and transitional amendments (TOFA provisions) to its existing financial arrangements.
Farm management deposits
Schedule 5 to this Act amends Division 393 of the Income Tax Assessment Act 1997 (ITAA 1997) to allow a farm management deposit (FMD) owner affected by an applicable natural disaster to access their FMDs within 12 months of making a deposit while retaining concessional tax treatment.
Extend the temporary loss relief for merging superannuation funds by three months
Schedule 6 to this Act amends the Tax Laws Amendment (2009 Measures No. 6) Act 2010 to extend the end date of the temporary loss relief for complying superannuation fund mergers by three months — from 30 June 2011 to 30 September 2011. This will provide additional time for mergers to be completed and still meet the eligibility requirements of the loss relief. The requirement that affected mergers are completed in a single income year of the transferring fund is also relaxed to permit funds to benefit from the extension.
Penalty notice validation
Schedule 7 to this Act ensures the ongoing validity of certain director penalty notices, notwithstanding the New South Wales Court of Appeal (NSWCA) decision in Soong v Deputy Commissioner of Taxation [2011] NSWCA 26 (Soong).
Public ancillary funds
Schedule 8 to this Act amends the Income Tax Assessment Act 1997, the Taxation Administration Act 1953 and the A New Tax System (Australian Business Number) Act 1999 to improve the integrity of public ancillary funds. These amendments among other things:
" rename the funds as public ancillary funds (their more commonly used name);
" give the Treasurer the power to make legislative guidelines about the establishment and maintenance of public ancillary funds; and
" give the Commissioner of Taxation (Commissioner) the power to impose administrative penalties on trustees that fail to comply with the guidelines and to remove or suspend trustees of non-complying funds.
Film tax offsets
Schedule 9 to this Act amends Division 376 of the Income Tax Assessment Act 1997 to make a number of changes to the film tax offsets.

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Competition and Consumer Legislation Amendment Act 2011 (Act 184/2011)

Assent

6/12/2011 Gazette No GN 49, 14 December 2011, p 2950

Commencement

1/01/2011 Schedule 3 - Immediately after the commencement of Schedule 5 to the Trade Practices Amendment (Australian Consumer Law) Act (No. 2) 2010.

1/01/2012 Schedule 2 - The later of:
(a) the day this Act receives the Royal Assent; and
(b) 1 January 2012 - paragraph (b) applies

Schedule 1 - A single day to be fixed by Proclamation.
However, if the provision(s) do not commence within the period of 2 months beginning on the day this Act receives the Royal Assent, they commence on the day after the end of that period ie. 7 February 2012

6/12/2011 Sections 1 to 3 and anything in this Act not elsewhere covered by this table - The day this Act receives the Royal Assent.

Amends

Trade Practices Amendment (Australian Consumer Law) Act (No. 2) 2010

Australian Securities and Investments Commission Act 2001

Competition and Consumer Act 2010

Summary

The Act amends the Competition and Consumer Act 2010 ('the CC Act') (formerly the Trade Practices Act 1974) to clarify the operation of the provision relating to mergers and acquisitions; section 50 of the CC Act. The Act will also insert a statement of interpretative principles into the unconscionable conduct provisions of the Australian Consumer Law (ACL) and the Australian Securities and Investments Act 2001 (ASIC Act) and unify sections 21 and 22 of the ACL (formerly sections 51AB and 51AC of the CC Act). The changes to the unconscionable conduct provisions will generally be reflected in the ASIC Act.
The Act will also correct a small number of minor drafting errors made in the Trade Practices Amendment (Australian Consumer Law) Act (No. 2) 2010.
Date of effect: The provisions relating to mergers and acquisitions will commence on a single day to be fixed by Proclamation. However, if any of the provision(s) do not commence within the period of two months beginning on the day this Act receives the Royal Assent, they commence on the day after the end of that period. This will ensure that those who may be affected by the new provisions will have time to consider the provisions prior to their commencement.
The provisions relating to unconscionable conduct will commence on the later of the day it receives the Royal Assent or 1 January 2012. This will ensure that those who may be affected by the new provisions will have time to consider the provisions prior to their commencement.
The corrections of the drafting errors in a previous amendment Act will apply retrospectively from 1 January 2011 (the day that amendment Act commenced) to ensure that the amendments in that Act have always applied as intended

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