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

No. 19, 2010

Compilation No. 7

Compilation date: 1 July 2020

Includes amendments up to: Act No. 49, 2020

Registered: 5 August 2020

About this compilation

This compilation

This is a compilation of the Tax Laws Amendment (2009 Measures No. 6) Act 2010 that shows the text of the law as amended and in force on 1 July 2020 (the compilation date).

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Legislation Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the series page on the Legislation Register for the compiled law.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Editorial changes

For more information about any editorial changes made in this compilation, see the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the series page on the Legislation Register for the compiled law.

Self - repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

Contents

1 Short title 1

2 Commencement 1

3 Schedule(s) 2

Schedule 1—Abolishing trust cloning and providing a CGT roll-over for certain trusts 3

Part 1—Removing trust cloning exception 3

Income Tax Assessment Act 1997 3

Part 2—Roll-over for certain trusts 4

Income Tax Assessment Act 1997 4

Part 3—Other amendments 17

A New Tax System (Goods and Services Tax) Act 1999 17

Income Tax Assessment Act 1997 17

Schedule 2—Loss relief for merging superannuation funds 19

Part 1—Main amendment 19

Income Tax Assessment Act 1997 19

Part 2—Other amendments 35

Income Tax Assessment Act 1997 35

Part 3—Application provision 39

Schedule 3—Exempt annuity business of life insurance companies 40

30 June 2000 40Part 1—Amendments applying from

Division 1—Amendment of the Income Tax Assessment Act 1997 40

Division 2—Consequential amendment 42

Tax Laws Amendment (2006 Measures No. 2) Act 2006 42

Part 2—Amendments applying from the 2007-08 income year 43

Division 1—Amendment of the Income Tax Assessment Act 1997 43

Division 2—Consequential amendments 44

Superannuation Legislation Amendment (Simplification) Act 2007 44

Part 3—Application provision 45

Schedule 4—Deductible gift recipients 46

4 June 2009 46Part 1—Amendments commencing on

Income Tax Assessment Act 1997 46

Part 2—Amendments commencing on Royal Assent 47

Income Tax Assessment Act 1997 47

Part 3—Application provision 48

Schedule 5—North Western Queensland floods 49

Part 1—Main amendments 49

Income Tax Assessment Act 1936 49

Income Tax Assessment Act 1997 49

1 July 2011 50Part 2—Sunsetting on

Income Tax Assessment Act 1997 50

Part 3—Application provision 51

Schedule 6—Spirit blending 52

Excise Act 1901 52

Endnotes 53

Endnote 1—About the endnotes 53

Endnote 2—Abbreviation key 55

Endnote 3—Legislation history 56

Endnote 4—Amendment history 58

An Act to amend the law relating to taxation, and for related purposes

1 Short title

This Act may be cited as the Tax Laws Amendment (2009 Measures No. 6) Act 2010.

2 Commencement 1

Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

Commencement information	Commencement information	Commencement information
Column 1	Column 2	Column 3
Provision(s)	Commencement	Date/Details
1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table	The day this Act receives the Royal Assent.	24 March 2010
2. Schedule 1	The day this Act receives the Royal Assent.	24 March 2010
3. Schedule 2, Parts 1, 2 and 3	The day after this Act receives the Royal Assent.	25 March 2010
5. Schedule 3, Part 1, Division 1	Immediately after the commencement of item 57 of Schedule 1 to the Tax Laws Amendment (2004 Measures No. 2) Act 2004.	30 June 2000
6. Schedule 3, Part 1, Division 2	Immediately after the commencement of item 214 of Schedule 7 to the Tax Laws Amendment (2006 Measures No. 2) Act 2006.	22 June 2006
7. Schedule 3, Part 2, Division 1	At the same time as Schedule 1 to the Superannuation Legislation Amendment (Simplification) Act 2007 commences.	15 March 2007
8. Schedule 3, Part 2, Division 2	Immediately after the start of the day on which the Superannuation Legislation Amendment (Simplification) Act 2007 received the Royal Assent.	15 March 2007
9. Schedule 3, Part 3	The day this Act receives the Royal Assent.	24 March 2010
10. Schedule 4, Part 1	4 June 2009.	4 June 2009
11. Schedule 4, Parts 2 and 3	The day this Act receives the Royal Assent.	24 March 2010
12. Schedule 5, Part 1	25 February 2009.	25 February 2009
13. Schedule 5, Part 2	Immediately before the commencement of item 5 of Schedule 5 to the Tax Laws Amendment (2008 Measures No. 6) Act 2009.	1 July 2011
14. Schedule 5, Part 3	The day this Act receives the Royal Assent.	24 March 2010
15. Schedule 6	The day this Act receives the Royal Assent.	24 March 2010

Note: This table relates only to the provisions of this Act as originally passed by both Houses of the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent.

Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or edited in any published version of this Act.

3 Schedule(s)

Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Abolishing trust cloning and providing a CGT roll-over for certain trusts

Income Tax Assessment Act 1997

1 Subsection 104-55(5)

Repeal the subsection, substitute:

Exceptions

(5) CGT event E1 does not happen if you are the sole beneficiary of the trust and:

you are absolutely entitled to the asset as against the trustee (disregarding any legal disability); and

the trust is not a unit trust.

2 Subsection 104-60(5)

Repeal the subsection, substitute:

Exceptions

(5) CGT event E2 does not happen if you are the sole beneficiary of the trust and:

you are absolutely entitled to the asset as against the trustee (disregarding any legal disability); and

the trust is not a unit trust.

3 Application provision

The amendments made by this Part apply to CGT events happening on or after 1 November 2008.

Income Tax Assessment Act 1997

4 Subsection 40-340(1) (at the end of the table)

Add:

5 Section 109-55 (after table item 8F)

Insert:

6 After section 112-54

Insert:

112-54A Transfer of assets between certain trusts 7 Section 112-150 (at the end of the table)

Add:

8 Subsection 115-30(1) (at the end of the table)

Add:

9 At the end of Division 126

Add:

Guide to Subdivision 126-G

126-215 What this Subdivision is about

Roll-overs may be available when CGT assets are transferred between certain trusts.

Table of sections

Operative provisions

126-220 Object of this Subdivision

126-225 When a roll-over may be chosen

126-230 Beneficiaries’ entitlements not be discretionary etc.

126-235 Exceptions for roll-over

126-240 Consequences for the trusts

126-245 Consequences for beneficiaries—general approach for working out cost base etc.

126-250 Consequences for beneficiaries—other approach for working out cost base etc.

126-255 No other cost base etc. adjustment for beneficiaries

126-260 Giving information to beneficiaries

Operative provisions

126-220 Object of this Subdivision

The object of this Subdivision is to ensure that CGT considerations are not an impediment to the restructure of trusts, whilst ensuring that subsequent changes to the manner and extent to which beneficiaries can benefit from the trusts are subject to appropriate tax consequences.

126-225 When a roll-over may be chosen 1

(1) A roll-over may be chosen for a *CGT asset (the roll-over asset) if:

(a) the trustee of a trust (the transferring trust):

(i) creates a trust (the receiving trust), by declaration or settlement, over one or more CGT assets that include the roll-over asset; or

(ii) transfers the roll-over asset to an existing trust (the receiving trust);

at a particular time (the transfer time); and

Exception if other roll-over assets already transferred

Obtaining the roll-over

if subparagraph (a)(ii) applies—the receiving trust has no CGT assets, other than small amounts of cash or debt, just before the transfer time; and

just after the transfer time:

each of the trusts has the same beneficiaries; and

the receiving trust has the same *classes of *membership interests that the transferring trust had just before, and has just after, the transfer time; and

iii

the sum of the *market values of each beneficiary’s membership interests of a particular class in both trusts is substantially the same as the sum of the market values, just before the transfer time, of the beneficiary’s membership interests of that class in both trusts; and

the requirement in section 126-230 is met; and

the exceptions in section 126-235 do not apply.

However, paragraph (1)(b) does not apply if:

the roll-over asset is transferred to the receiving trust under an *arrangement; and

the roll-over asset was an asset of the transferring trust just before the arrangement was made; and

at least one other asset of the receiving trust:

is an asset for which a roll-over was obtained under this Subdivision for the trusts; and

is an asset over which the receiving trust was created, or was transferred by the transferring trust to the receiving trust under the arrangement; and

(d) the transfer time is in the income year for the transferring trust that includes the earliest transfer time (the start time) for the assets covered by paragraph (c).

The roll-over only happens if both the trustee of the transferring trust and the trustee of the receiving trust choose to obtain it.

126-230 Beneficiaries’ entitlements not be discretionary etc. 1

The conditions in subsections (2) and (3) must be met:

if subsection 126-225(2) applies—at all times during the period:

starting at the start time; and

ending at the transfer time; and

otherwise—at the transfer time.

CGT event E4 is capable of happening

Note: A roll-over cannot be chosen if either trust is a discretionary trust.

Beneficiaries’ entitlements not discretionary

The first condition is met at a particular time if, at that time, *CGT event E4 is capable of happening to all of the *membership interests in each of the trusts.

The second condition is met at a particular time if, at that time, the manner or extent to which each beneficiary of each trust can benefit from the trust is not capable of being significantly affected by the exercise, or non-exercise, of a power.

However, if both trusts are *managed investment trusts, disregard a power if the power’s existence at that time does not significantly affect the *market value at that time of each *membership interest in each of the trusts.

126-235 Exceptions for roll-over

Foreign trusts

Corporate unit trusts and public trading trusts

Choices

Note: For paragraph (a), the other trust must still be able, under the relevant provision of the taxation law, to make the mirror choice.

that provision is taken to apply for a mirror choice, in force for the other trust at or after that time, in a way corresponding to the way in which it applies for the first choice.

Note: For example, if the provision sets out consequences that flow from the revocation of the first choice, then those consequences will also flow if the mirror choice is revoked.

An exception applies for a *CGT asset if:

the receiving trust is a *foreign trust for CGT purposes for the income year that includes the transfer time; and

the roll-over asset is not *taxable Australian property just after the transfer time.

(2) Another exception applies if either trust is a trust to which Income Tax Assessment Act 1936 applies for the income year that includes the transfer time.section 102K or 102S of the

Another exception applies if, just after the transfer time:

a choice (however described) under a provision of a *taxation law is in force for either of the trusts in relation to particular circumstances; and

(b) the same choice (however described) under that provision for the other trust in relation to those circumstances (a mirror choice) is not also in force; and

the absence of a mirror choice would or could have an ongoing effect on the calculation of an entity’s *net income, or taxable income, for:

the entity’s income year that includes the transfer time; or

a later income year.

However, the exception in subsection (3) does not apply if:

the other trust makes a mirror choice before the first time after the transfer time when the absence of the mirror choice would affect the calculation of an entity’s *net income, or taxable income, for an income year; or

it would not be reasonable for subsection (3) to apply.

If, just after the transfer time:

(a) a choice (however described) referred to in paragraph (3)(a) is in force for either of the trusts (the first choice); and

a provision of a *taxation law:

prevents the revocation or variation of that choice; or

sets out a consequence for an entity if that choice is revoked or varied;

126-240 Consequences for the trusts

Disregard any capital gain or loss

at the transfer time.

Adjust roll-over asset’s cost base and reduced cost base

Any pre-transfer losses of receiving trust cannot be utilised

References in this subsection to the transfer time are to be read as references to the start time if subsection 126-225(2) applies.

Note: Subsection 126-225(2) applies if the roll-over asset is transferred to the receiving trust after an earlier roll-over under this Subdivision, for another asset, was obtained for the trusts.

Pre-CGT assets

the receiving trust is taken to have acquired it before that day.

If the roll-over is chosen, disregard any *capital gain or *capital loss the trustee of the transferring trust makes from:

creating the receiving trust over the roll-over asset; or

transferring the roll-over asset to the receiving trust;

If the roll-over is chosen:

the first element of the roll-over asset’s *cost base, in the hands of the receiving trust, is its cost base just before the transfer time; and

the first element of the roll-over asset’s *reduced cost base is worked out similarly.

If the roll-over is chosen:

any *net capital loss of the receiving trust for an income year ending before the transfer time cannot be applied after the transfer time to reduce an amount of that trust’s *capital gains; and

(b) the sum of the receiving trust’s *capital losses for the income year that includes the transfer time (the transfer year) is reduced by an amount equal to any net capital loss that the trust would have had for that year had that year ended just before the transfer time; and

any *tax loss of the receiving trust for an income year ending before the transfer time cannot be deducted after the transfer time from an amount of that trust’s assessable income or *net exempt income; and

the sum of the receiving trust’s deductions for the transfer year is reduced by an amount equal to any tax loss that the trust would have had for that year had that year ended just before the transfer time.

If:

the roll-over is chosen; and

the transferring trust last *acquired the roll-over asset before 20 September 1985;

126-245 Consequences for beneficiaries—general approach for working out cost base etc. 1

If the roll-over is chosen, each of the following:

the *cost base and *reduced cost base of each of a beneficiary’s *membership interests in each trust;

the time each of the beneficiary’s membership interests in the receiving trust is treated as having been *acquired;

is adjusted under this section for the transfer time unless the beneficiary has chosen for them to be adjusted under section 126-250.

Note: The beneficiary can choose for these things to be adjusted once for several consecutive transfer times (for multiple roll-over assets) if the beneficiary owned the interests at all of those times (see section 126-250).

First element of cost base of interests in transferring trust

First element of cost base of interests in receiving trust

reasonably approximates:

First element of reduced cost base of interests in each trust

Time of acquisition for interests in the receiving trust

Time of acquisition for pre-CGT interests in the receiving trust

The first element of the *cost base, just after the transfer time, of each of the beneficiary’s *membership interests in the transferring trust is an amount equal to such proportion of the interest’s cost base just before the transfer time as is reasonable having regard to:

the *market value of the interest just after the transfer time, or a reasonable approximation of that market value; and

the market value of the interest just before the transfer time, or a reasonable approximation of that market value.

The first element of the *cost base, just after the transfer time, of each of the beneficiary’s *membership interests in the receiving trust is such amount so that the sum of:

the cost base, just before the transfer time, of that membership interest in the receiving trust; and

if, just after the transfer time, that interest in the receiving trust corresponds to at least one of the beneficiary’s membership interests in the transferring trust—the cost base, just before the transfer time, of each of those corresponding membership interests in the transferring trust; and

if, just after the transfer time, that interest in the receiving trust corresponds to a proportion of one of the beneficiary’s membership interests in the transferring trust—that proportion of the cost base, just before the transfer time, of that corresponding membership interest in the transferring trust;

if paragraph (b) applies—the sum of the cost bases, just after the transfer time, of each of the interests referred to in paragraphs (a) and (b); and

if paragraph (c) applies—the sum of:

the cost base, just after the transfer time, of the interest referred to in paragraph (a); and

the proportion of the cost base, just after the transfer time, of the interest referred to in paragraph (c).

The first element of the *reduced cost base, just after the transfer time, of each of the beneficiary’s *membership interests in each trust is worked out similarly.

Each of the beneficiary’s *membership interests in the receiving trust is treated as having been *acquired just after the transfer time.

However, if one or more of the beneficiary’s *membership interests in the transferring trust were *pre-CGT assets just before the transfer time, the beneficiary is treated as having *acquired before 20 September 1985 its interests in the receiving trust that correspond to those interests in the transferring trust.

126-250 Consequences for beneficiaries—other approach for working out cost base etc. 1

This section applies if the beneficiary owns one or more *membership interests in the transferring trust at all times during the period:

(a) starting just before this time (the starting time):

the transfer time; or

the transfer time for an asset referred to in paragraph 126-225(2)(c) (assuming subsection 126-225(2) applies); and

(b) ending just after this time (the ending time):

the transfer time (assuming this is not also the starting time); or

a later time in the transfer year that is the transfer time for another asset for which a roll-over is obtained under this Subdivision for the trusts.

Note: Subsection 126-225(2) applies if the roll-over asset is transferred to the receiving trust after an earlier roll-over under this Subdivision, for another asset, was obtained for the trusts.

to be adjusted under subsection (3) for the period.

The beneficiary may choose for each of the following:

the *cost base and *reduced cost base of each of those *membership interests and of the beneficiary’s corresponding membership interests in the receiving trust;

the time each of those corresponding interests in the receiving trust is treated as having been *acquired;

For each of the interests referred to in subsection (2), subsections 126-245(2), (3), (4), (5) and (6) apply as if:

references in those subsections to just before the transfer time were references to just before the starting time; and

references in those subsections to just after the transfer time were references to just after the ending time.

126-255 No other cost base etc. adjustment for beneficiaries

If a beneficiary of the trusts makes adjustments under section 126-245 or 126-250 to the *cost base and *reduced cost base of the beneficiary’s *membership interests in relation to the *CGT event that is:

no other adjustment is to be made under this Act to those cost bases and reduced cost bases because of something that happens in relation to that event.

Note: This section prevents the general value shifting regime from applying in relation to the event because sections 126-245 and 126-250 deal with any value shift that might occur.

the creation of the receiving trust over the roll-over asset; or

the transfer of the roll-over asset to the receiving trust;

126-260 Giving information to beneficiaries

Beneficiaries must be given particulars of the roll-over

Note: The trustee may also notify beneficiaries of other details of the roll-over.

The particulars that must be given

Offence

Penalty: 30 penalty units.

Note: For strict liability, see Criminal Code.section 6.1 of the

If the transferring trust has multiple trustees

Note: Each of the trustees commits an offence against subsection (3) if none of them discharges the obligation imposed by subsection (1).

Note: A defendant bears a legal burden in relation to the matters in subsection (6): see Criminal Code.section 13.4 of the

Obligations of beneficiary unaffected if not notified of roll-over

If the roll-over is chosen, the trustee of the transferring trust must, within 3 months after the end of the transfer year, send written notice of the particulars set out in subsection (2) to each of the trust’s beneficiaries:

by post to the address most recently notified by the beneficiary as the beneficiary’s address; or

by any other means notified by the beneficiary for receiving correspondence from the trust.

The particulars are as follows:

the roll-over asset’s transfer time;

sufficient information to enable a beneficiary to work out which of the beneficiary’s *membership interests in the receiving trust correspond to each of the beneficiary’s membership interests in the transferring trust;

the *market value of each of the membership interests held by the beneficiary in the transferring trust just after the roll-over asset’s transfer time, or a reasonable approximation of that market value;

the market value of each of the membership interests held by the beneficiary in the transferring trust just before the roll-over asset’s transfer time, or a reasonable approximation of that market value.

A trustee commits an offence if the trustee contravenes subsection (1).

An offence against subsection (3) is an offence of strict liability.

If the transferring trust has 2 or more trustees, the obligation imposed by subsection (1) is imposed on each of the trustees, but may be discharged by any of the trustees.

In a prosecution of a trustee for an offence against subsection (3) for an act or omission contravening subsection (1), it is a defence if the trustee proves that the trustee:

did not aid, abet, counsel or procure the act or omission; and

was not in any way knowingly concerned in, or party to, the act or omission (whether directly or indirectly and whether by any act or omission of the trustee).

A failure by a trustee to comply with subsection (1) does not affect the application of section 126-245 to the beneficiary.

10 Subsection 995-1(1) (definition of class) (second occurring)

After “company”, insert “or trust”.

11 Application provision

The amendments made by items 4 to 9 apply to CGT events happening on or after 1 November 2008.

12 Transitional: time for making mirror choices 1

(1) Subsection 126-235(3) of the Income Tax Assessment Act 1997 does not apply if the other trust makes a mirror choice under a provision of a taxation law by:

6 months after the day this Act receives the Royal Assent; or

a later day allowed by the Commissioner of Taxation.

Note: For this item to have effect, the other trust must still be able, under that provision of the taxation law, to make the mirror choice.

(2) This item has effect in addition to subsection 126-235(4) of the Income Tax Assessment Act 1997.

13 Transitional: deadline for giving information to beneficiaries 1

(1) This item applies in relation to a roll-over chosen under Subdivision 126-G of the Income Tax Assessment Act 1997 if the transfer year for the roll-over is the transferring trust’s 2008-09 income year.

Subsection 126-260(1) of that Act has effect, in relation to the roll-over, as if the reference in that subsection to 3 months after the end of the transfer year were a reference to 6 months after the day this Act receives the Royal Assent.

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

14 Subsection 184-1(2) (note)

Omit “Note”, substitute “Note 1”.

15 At the end of subsection 184-1(2)

Add:

Note 2: The entity that is the trustee of a trust or fund does not change merely because of a change in the person who is the trustee of the trust or fund, or persons who are the trustees of the trust or fund.

Income Tax Assessment Act 1997

16 Subsection 104-10(2)

Repeal the subsection, substitute:

Note: A change in the trustee of a trust does not constitute a change in the entity that is the trustee of the trust (see subsection 960-100(2)). This means that CGT event A1 will not happen merely because of a change in the trustee.

(2) You dispose of a *CGT asset if a change of ownership occurs from you to another entity, whether because of some act or event or by operation of law. However, a change of ownership does not occur if you stop being the legal owner of the asset but continue to be its beneficial owner.

17 At the end of subsection 104-55(1)

Add:

Note: A change in the trustee of a trust does not constitute a change in the entity that is the trustee of the trust (see subsection 960-100(2)). This means that CGT event E1 will not happen merely because of a change in the trustee.

18 At the end of subsection 104-60(1)

Add:

Note: A change in the trustee of a trust does not constitute a change in the entity that is the trustee of the trust (see subsection 960-100(2)). This means that CGT event E2 will not happen merely because of a change in the trustee.

19 Subsection 960-100(2) (note)

Omit “Note”, substitute “Note 1”.

20 At the end of subsection 960-100(2)

Add:

Loss relief for merging superannuation funds

Income Tax Assessment Act 1997

1 At the end of Part 3-30

Add:

Table of Subdivisions

Guide to Division 310

310-A Object of this Division

310-B Choice to transfer losses

310-C Consequences of choosing to transfer losses

310-D Choice for assets roll-over

310-E Consequences of choosing assets roll-over

310-F Choices

Guide to Division 310

310-1 What this Division is about

This Division sets out special rules for certain merging superannuation funds. These rules relate to the transfer of losses, the treatment of CGT events related to the merger and the treatment of assets related to the merger.

Note 1: This Division applies only to mergers happening between 24 December 2008 and 30 June 2011 (see Tax Laws Amendment (2009 Measures No. 6) Act 2010).Part 3 of Schedule 2 to the

Note 2: This Division and associated provisions will be repealed on 1 July 2013 (see Parts 4 and 5 of that Schedule).

Operative provisions

310-5 Object

The main object of this Division is to facilitate the consolidation of the superannuation industry by allowing certain merging *superannuation funds to retain the value, for income tax purposes, of certain losses that might otherwise cease to be able to be utilised as a result of the merger.

Table of sections

310-10 Original fund’s assets extend beyond life insurance policies and units in pooled superannuation trusts

310-15 Original fund’s assets include a complying superannuation/FHSA life insurance policy

310-20 Original fund’s assets include units in a pooled superannuation trust

310-10 Original fund’s assets extend beyond life insurance policies and units in pooled superannuation trusts 1

A trustee of:

(a) a *complying superannuation fund (the transferring entity or the original fund); or

(b) a *complying approved deposit fund (the transferring entity or the original fund);

can choose to transfer losses if an *arrangement is made for which the conditions in this section are satisfied.

Transferring entity’s assets include other assets

Note: Other entities may also choose under this Subdivision to transfer losses, for the same arrangement, if the transferring entity holds a complying superannuation/FHSA life insurance policy or units in a pooled superannuation trust.

Original fund’s members transfer to a continuing fund

Continuing funds will usually not be able to be small funds

Ignore members who cannot transfer to a continuing fund

The first condition is satisfied if, just before the *arrangement was made, the transferring entity’s assets included assets other than:

a *complying superannuation/FHSA life insurance policy; or

units in a *pooled superannuation trust.

The second condition is satisfied if, under the *arrangement:

(a) the transferring entity ceases to have any members (within the meaning of the Superannuation Industry (Supervision) Act 1993) at a particular time (the completion time); and

(b) the individuals who cease to be members (within the meaning of that Act) of the transferring entity become members (within the meaning of that Act) of one or more *complying superannuation funds (the continuing funds).

The third condition is satisfied if either:

none of the continuing funds was a *small superannuation fund, and all existed, just before the *arrangement was made; or

the following subparagraphs apply:

only one of the continuing funds either was a small superannuation fund, or did not exist, just before the arrangement was made;

(ii) under the arrangement, a *complying superannuation fund or *complying approved deposit fund, other than the original fund, ceases to have any members (within the meaning of the Superannuation Industry (Supervision) Act 1993);

iii

under the arrangement, the individuals who cease to be members (within the meaning of that Act) of that other fund become members (within the meaning of that Act) of the continuing fund;

either the other fund or the original fund was not a small superannuation fund just before the arrangement was made;

the continuing fund is not a small superannuation fund just after the earliest time when both the other fund and the original fund cease to have any members (within the meaning of that Act).

For the purposes of subsections (3) and (4), ignore an individual who remains a member of a *complying superannuation fund or *complying approved deposit fund because of circumstances beyond the control of the trustee of that fund.

310-15 Original fund’s assets include a complying superannuation/FHSA life insurance policy 1

(1) A *life insurance company (the transferring entity) can choose to transfer losses if an *arrangement is made for which the conditions in this section are satisfied.

Original fund holds a complying superannuation/FHSA life insurance policy

Note: Other entities may also choose under this Subdivision to transfer losses, for the same arrangement, if the original fund holds other assets.

Original fund’s members transfer to a continuing fund

Continuing funds will usually not be able to be small funds

Ignore members who cannot transfer to a continuing fund

The first condition is satisfied if, just before the *arrangement was made, a *complying superannuation/FHSA life insurance policy issued by the transferring entity was held by:

(a) a *complying superannuation fund (the original fund); or

(b) a *complying approved deposit fund (the original fund).

The second condition is satisfied if, under the *arrangement:

(a) the original fund ceases to have any members (within the meaning of the Superannuation Industry (Supervision) Act 1993) at a particular time (the completion time); and

(b) the individuals who cease to be members (within the meaning of that Act) of the original fund become members (within the meaning of that Act) of one or more *complying superannuation funds (the continuing funds).

The third condition is satisfied if either:

none of the continuing funds was a *small superannuation fund, and all existed, just before the *arrangement was made; or

the following subparagraphs apply:

only one of the continuing funds either was a small superannuation fund, or did not exist, just before the arrangement was made;

iii

under the arrangement, the individuals who cease to be members (within the meaning of that Act) of that other fund become members (within the meaning of that Act) of the continuing fund;

either the other fund or the original fund was not a small superannuation fund just before the arrangement was made;

the continuing fund is not a small superannuation fund just after the earliest time when both the other fund and the original fund cease to have any members (within the meaning of that Act).

310-20 Original fund’s assets include units in a pooled superannuation trust 1

(1) A trustee of a *pooled superannuation trust (the transferring entity) can choose to transfer losses if an *arrangement is made for which the conditions in this section are satisfied.

Units in the trust were held by the original fund

Note: Other entities may also choose under this Subdivision to transfer losses, for the same arrangement, if the original fund holds other assets.

Original fund’s members transfer to a continuing fund

Continuing funds will usually not be able to be small funds

Ignore members who cannot transfer to a continuing fund

Table of sections

310-25 Who losses can be transferred to

310-30 Losses that can be transferred

310-35 Effect of transferring a net capital loss

310-40 Effect of transferring a tax loss

The first condition is satisfied if, just before the *arrangement was made, units in the transferring entity were held by:

(a) a *complying superannuation fund (the original fund); or

(b) a *complying approved deposit fund (the original fund).

The second condition is satisfied if, under the *arrangement:

(a) the original fund ceases to have any members (within the meaning of the Superannuation Industry (Supervision) Act 1993) at a particular time (the completion time); and

The third condition is satisfied if either:

none of the continuing funds was a *small superannuation fund, and all existed, just before the *arrangement was made; or

the following subparagraphs apply:

only one of the continuing funds either was a small superannuation fund, or did not exist, just before the arrangement was made;

iii

under the arrangement, the individuals who cease to be members (within the meaning of that Act) of that other fund become members (within the meaning of that Act) of the continuing fund;

either the other fund or the original fund was not a small superannuation fund just before the arrangement was made;

the continuing fund is not a small superannuation fund just after the earliest time when both the other fund and the original fund cease to have any members (within the meaning of that Act).

310-25 Who losses can be transferred to

An entity choosing under Subdivision 310-B to transfer losses can choose to transfer any or all of the transferring entity’s losses set out in receiving entity):section 310-30, in whole or in part, to one or more of the following entities (a

a continuing fund for the choice;

a *pooled superannuation trust in which units are held by a continuing fund for the choice just after the completion time;

a *life insurance company with which a *complying superannuation/FHSA life insurance policy is held by a continuing fund for the choice just after the completion time.

310-30 Losses that can be transferred 1

The transferring entity’s losses that can be transferred are:

(a) any of its *net capital losses for income years earlier than the income year for the transferring entity that includes the completion time (the transfer year), to the extent that it was not *utilised before the completion time (an earlier year net capital loss); and

(b) any net capital loss it would have made for the transfer year were the transfer year to have ended at the completion time (a transfer year net capital loss); and

(c) any of its *tax losses for income years earlier than the transfer year, to the extent that it was not utilised before the completion time (an earlier year tax loss); and

(d) any tax loss it would have incurred for the transfer year were the transfer year to have ended at the completion time (a transfer year tax loss);

worked out subject to the modifications set out in this section.

Note: If the entity choosing to transfer losses also chooses an asset roll-over under Subdivision 310-D for the same arrangement, none of the transfer events for the roll-over will contribute towards a loss transferred under this Subdivision (see subsections 310-55(1), 310-60(3), 310-65(1) and 310-70(1)).

For a choice under section 310-15 (life insurance companies), work out those losses by only considering the following to the extent that they relate to assets reasonably attributable to a *complying superannuation/FHSA life insurance policy issued by the transferring entity and held by the original fund:

*capital gains from *complying superannuation/FHSA assets;

*capital losses from complying superannuation/FHSA assets;

assessable income covered by subsection 320-137(2) (about complying superannuation/FHSA assets);

deductions covered by subsection 320-137(4) (about complying superannuation/FHSA assets).

For a choice under section 310-20 (pooled superannuation trusts), work out those losses by only considering *capital gains, *capital losses, assessable income and deductions to the extent that they relate to assets reasonably attributable to units in the transferring entity held by the original fund.

310-35 Effect of transferring a net capital loss 1

To the extent that an earlier year net capital loss is transferred to a receiving entity:

the transferring entity is taken not to have made the loss for that earlier income year; and

an amount equal to the transferred amount is taken to be:

if the receiving entity is a *life insurance company—a *capital loss from *complying superannuation/FHSA assets made by the receiving entity for that earlier year; and

otherwise—a capital loss made by the receiving entity for that earlier year.

To the extent that a transfer year net capital loss is transferred to a receiving entity:

if the transferring entity is a *life insurance company—the sum of the transferring entity’s *capital losses from *complying superannuation/FHSA assets for the transfer year is reduced by an amount equal to the transferred amount; and

if the transferring entity is not a life insurance company—the sum of the transferring entity’s capital losses for the transfer year is reduced by an amount equal to the transferred amount; and

if the receiving entity is a life insurance company—an amount equal to the transferred amount is taken to be a capital loss from complying superannuation/FHSA assets made by the receiving entity for the transfer year; and

if the receiving entity is not a life insurance company—an amount equal to the transferred amount is taken to be a capital loss made by the receiving entity for the transfer year.

310-40 Effect of transferring a tax loss 1

To the extent that an earlier year tax loss is transferred to a receiving entity:

the transferring entity is taken not to have incurred the loss for that earlier income year; and

an amount equal to the transferred amount is taken to be:

if the receiving entity is a *life insurance company—a *tax loss of the *complying superannuation/FHSA class incurred by the receiving entity for that earlier year; and

otherwise—a tax loss incurred by the receiving entity for that earlier year.

To the extent that a transfer year tax loss is transferred to a receiving entity:

if the transferring entity is a *life insurance company—the sum of the transferring entity’s deductions covered by subsection 320-137(4) (about complying superannuation/FHSA assets) for the transfer year is reduced by an amount equal to the transferred amount; and

if the transferring entity is not a life insurance company—the sum of the transferring entity’s deductions for the transfer year is reduced by an amount equal to the transferred amount; and

if the receiving entity is a life insurance company—an amount equal to the transferred amount is taken to be a *tax loss of the *complying superannuation/FHSA class incurred by the receiving entity for the transfer year; and

if the receiving entity is not a life insurance company—an amount equal to the transferred amount is taken to be a tax loss incurred by the receiving entity for the transfer year.

Table of sections

310-45 Choosing the assets roll-over

310-50 Choosing the form of the assets roll-over

310-45 Choosing the assets roll-over 1

An entity can choose a roll-over under this Subdivision if:

(a) the entity makes or could make a choice under Subdivision 310-B (the losses choice) to transfer the losses of an entity (the transferring entity); and

the conditions in this section are satisfied for the *arrangement to which the losses choice relates.

(2) The first condition is that, under the *arrangement, one or more *CGT events (the transfer events) happen in relation to the following assets (the original assets) of the transferring entity with the result that it ceases to own those assets:

for a losses choice under section 310-10 (original funds)—all of its *CGT assets;

for a losses choice under section 310-15 (life insurance companies)—all of its CGT assets reasonably attributable to the *complying superannuation/FHSA life insurance policy held by the original fund for the losses choice just before the arrangement was made;

for a losses choice under section 310-20 (pooled superannuation trusts)—all of its CGT assets reasonably attributable to the units in that entity held by the original fund for the losses choice just before the arrangement was made.

(3) The second condition is that the transfer events all happen in the income year (the transfer year) for the transferring entity that includes the completion time for the losses choice.

(4) The third condition is that, for each transfer event, an asset (the received asset) becomes an asset of one of the following (the receiving entity) as a result of the event:

a continuing fund for the losses choice;

a *pooled superannuation trust in which units are held by a continuing fund for the losses choice just after the completion time;

a *life insurance company with which a *complying superannuation/FHSA life insurance policy is held by a continuing fund for the losses choice just after the completion time.

For the purposes of subsection (2), ignore any *CGT assets retained by the transferring entity:

to pay its existing or expected debts relating to the *arrangement; or

(b) to meet its liabilities relating to individuals who have remained members (within the meaning of the Superannuation Industry (Supervision) Act 1993) of the original fund because of circumstances beyond the control of the trustee of that fund.

310-50 Choosing the form of the assets roll-over 1

For those of the original assets that are not *revenue assets, the form of the roll-over is worked out as follows:

Method statement

Step 1. For the transfer events relating to those original assets:

Step 2. If the result of step 1 is more than zero, the entity choosing the roll-over can choose either section 310-55 (global asset approach) or 310-60 (individual asset approach) to apply to those assets and the corresponding received assets.

Step 3. Otherwise, section 310-60 (individual asset approach) applies to those original assets and the corresponding received assets.

Method statement

Step 1. For the transfer events relating to those original assets:

Step 2. If the result of step 1 is more than zero, the entity choosing the roll-over can choose either section 310-65 (global asset approach) or 310-70 (individual asset approach) to apply to those assets and the corresponding received assets.

Step 3. Otherwise, section 310-70 (individual asset approach) applies to those original assets and the corresponding received assets.

Table of sections

310-55 CGT assets—if global asset approach chosen

310-60 CGT assets—individual asset approach

310-65 Revenue assets—if global asset approach chosen

310-70 Revenue assets—individual asset approach

310-75 Further consequences for roll-overs involving life insurance companies

add up any *capital losses of the transferring entity for the events; and

subtract any *capital gains of the transferring entity for the events.

For those of the original assets that are *revenue assets, the form of the roll-over is worked out as follows:

add up any amounts the transferring entity would be able to deduct as a result of the events; and

subtract any amounts that would be included in the transferring entity’s assessable income as a result of the events.

310-55 CGT assets—if global asset approach chosen

Consequences for transferring entity

Note: This section only applies if it is chosen to apply under subsection 310-50(1).

Consequences for receiving entity

For each of the original assets to which this section applies, the transferring entity’s *capital proceeds from the relevant transfer event are taken to be an amount equal to:

if, apart from this subsection, the event would result in a *capital gain—the asset’s *cost base just before the event; or

if, apart from this subsection, the event would result in a *capital loss—the asset’s *reduced cost base just before the event.

For each of the received assets to which this section applies, the first element of the *cost base of the asset (in the hands of the receiving entity) is taken to be an amount equal to the cost base of the corresponding original asset just before the relevant transfer event.

For each of the received assets to which this section applies, the first element of the *reduced cost base of the asset (in the hands of the receiving entity) is taken to be an amount equal to the reduced cost base of the corresponding original asset just before the relevant transfer event.

310-60 CGT assets—individual asset approach

Consequences for transferring entity

Note: This section does not apply if section 310-55 (global asset approach) is chosen to apply under subsection 310-50(1).

Consequences for receiving entity

The transferring entity may disregard any *capital loss for a transfer event relating to an original asset to which this section applies.

Subsections (3), (4) and (5) apply if under subsection (1) the transferring entity disregards a *capital loss for a transfer event relating to an original asset.

The transferring entity’s *capital proceeds from the transfer event are taken to be an amount equal to the *reduced cost base of the original asset just before the event.

The first element of the *cost base of the corresponding received asset (in the hands of the receiving entity) is taken to be an amount equal to the cost base of the original asset just before the event.

The first element of the *reduced cost base of the corresponding received asset (in the hands of the receiving entity) is taken to be an amount equal to the reduced cost base of the original asset just before the event.

310-65 Revenue assets—if global asset approach chosen

Consequences for transferring entity

Note: This section only applies if it is chosen to apply under subsection 310-50(2).

Consequences for receiving entity

(1) For each of the original assets to which this section applies, the transferring entity’s gross proceeds for the relevant transfer event are taken to be the amount (the deemed proceeds) the transferring entity would need to have received in order to have a nil profit and nil loss for the event.

For each of the received assets to which this section applies, the receiving entity is taken, for the purposes of this Act, to have paid an amount for that asset at the time of the transfer event that is equal to the deemed proceeds for the corresponding original asset.

310-70 Revenue assets—individual asset approach

Consequences for transferring entity

Note: This section does not apply if section 310-65 (global asset approach) is chosen to apply under subsection 310-50(2).

Consequences for receiving entity

(1) If the transferring entity incurs a *tax loss for a transfer event relating to an original asset to which this section applies, the entity choosing the roll-over can choose for the transferring entity’s gross proceeds for the event to be taken to be the amount (the deemed proceeds) the transferring entity would need to have received in order to have a nil profit and nil loss for the event.

If a choice is made under subsection (1), the receiving entity is taken to have paid an amount for the corresponding received asset at the time of the transfer event that is equal to the deemed proceeds for the event.

310-75 Further consequences for roll-overs involving life insurance companies 1

Section 320-200 (about consequences of transferring assets to or from a complying superannuation/FHSA asset pool) does not apply for a transfer event for the roll-over if either the transferring entity or the receiving entity is a *life insurance company.

If the receiving entity for the roll-over is a *life insurance company, each received asset of that entity is taken:

to be a *complying superannuation/FHSA asset of that entity; and

not to be, in whole or in part, a *life insurance premium.

Table of sections

310-85 Choices

310-85 Choices 1

A choice under this Division must be made:

by the day the transferring entity’s *income tax return is lodged for the transfer year for the entity; or

within a further time allowed by the Commissioner.

The way the transferring entity’s *income tax return is prepared is sufficient evidence of the making of the choice.

Income Tax Assessment Act 1997

2 Subsection 40-340(1) (at the end of the table)

Add:

3 Section 112-97 (at the end of the table)

Add:

4 Subsection 115-30(1) (at the end of the table)

Add:

5 Section 116-25 (table item dealing with CGT event A1)

Repeal the item, substitute:

6 Section 116-25 (table item dealing with CGT event C2)

Omit “and 116-80”, substitute “, 116-80 and 116-110”.

7 Section 116-25 (table item dealing with CGT event E2)

Repeal the item, substitute:

8 At the end of Division 116

Add:

116-110 Roll-overs for merging superannuation funds

If a roll-over is chosen under Subdivision 310-D in relation to *CGT event A1, C2 or E2, the *capital proceeds of the transferring entity (within the meaning of that Division) from the event are the amount worked out under subsection 310-55(1) or 310-60(3).

9 At the end of section 290-170

Add:

Application to merging superannuation funds

then subsections (1) to (4), and section 290-180, apply as if:

If:

(a) after making your contribution, a choice is made under Subdivision 310-B in relation to the *superannuation fund (the original fund), another superannuation fund (the continuing fund) and an *arrangement; and

(b) under the arrangement, you became a member (within the meaning of the Superannuation Industry (Supervision) Act 1993) of the continuing fund; and

(c) you did not give a notice under subsection (1) in relation to the contribution while you were a member (within the meaning of the Superannuation Industry (Supervision) Act 1993) of the original fund;

references in those provisions to the fund were references to the continuing fund; and

references in those provisions to the trustee were references to the trustee of the continuing fund.

10 At the end of section 290-180

Add:

Application to merging superannuation funds

then subsections (2) and (3A) apply as if:

If:

(a) after a valid notice is given, a choice is made under Subdivision 310-B in relation to the *superannuation fund (the original fund), another superannuation fund (the continuing fund) and an *arrangement; and

(b) under the arrangement, you became a member (within the meaning of the Superannuation Industry (Supervision) Act 1993) of the continuing fund; and

(c) you seek to vary the valid notice after you cease to be a member (within the meaning of the Superannuation Industry (Supervision) Act 1993) of the original fund;

the reference in subsection (3A) to the fund were a reference to the continuing fund; and

references in those subsections to the trustee were references to the trustee of the continuing fund.

11 Application provision 1

The amendments made by Parts 1 and 2 of this Schedule apply in relation to a transferring entity and a receiving entity if:

(a) the condition in subsection 310-10(3), 310-15(3) or 310-20(3) of the Income Tax Assessment Act 1997 (as amended by this Schedule) for those entities is satisfied; and

all the transfer events (if any) referred to in subsection 310-45(2) of that Act for those entities happen;

during the period starting on 24 December 2008 and ending at the end of 30 June 2011, or on or after 1 October 2011.

Note 1: The effect of paragraph (1)(a) is that, subject to subitem (2), all of the members of the original fund will need to become members of a continuing fund during the period or on or after 1 October 2011.

Note 2: The effect of paragraph (1)(b) is that, subject to subitem (2), the transferring fund needs to cease to hold all relevant assets during the period or on or after 1 October 2011.

The amendments also apply in relation to a transferring entity and a receiving entity if:

(a) the condition in subsection 310-10(3), 310-15(3) or 310-20(3) of the Income Tax Assessment Act 1997 (as amended by this Schedule) for those entities is satisfied during the period starting on 24 December 2008 and ending at the end of 30 September 2011; and

all the transfer events (if any) referred to in subsection 310-45(2) of that Act for those entities happen during the period starting on 1 July 2010 and ending at the end of 30 September 2011.

Exempt annuity business of life insurance companies 1 Subparagraphs 320-246(1)(e)(ii) and (iii)

Omit “the conditions in subsections (3), (4) and (5)”, substitute “whichever of the conditions in subsection (3) are applicable”.

2 Subsections 320-246(3) to (5)

Repeal the subsections, substitute:

Tax Laws Amendment (2006 Measures No. 2) Act 2006

The following table sets out the conditions mentioned in subparagraphs (1)(e)(ii) and (iii):

3 Item 214 of Schedule 7 (table item 30)

Repeal the item.

4 Subparagraphs 320-246(1)(e)(i) to (iii)

Repeal the subparagraphs, substitute:

was purchased on or before 9 December 1987; or

is a *superannuation income stream; or

iii

satisfies whichever of the conditions in subsection (3) are applicable; or

5 Subsection 320-246(3)

Omit “subparagraphs (1)(e)(ii) and (iii)”, substitute “subparagraph (1)(e)(iii)”.

6 Subsection 320-246(3) (cell at table item 1, column 1)

Omit “section 27A”, substitute “section 27H”.

7 Subsection 320-246(3) (cell at table item 2, column 2)

Omit “reduced purchase price (within the meaning of that section)”, substitute “purchase price (within the meaning of that section), reduced by the sum of the deductible amounts excluded from assessable income under that section”.

8 Subsection 320-246(3) (cell at table item 3, column 2)

Superannuation Legislation Amendment (Simplification) Act 2007

9 Items 237, 238, 239 and 241 of Schedule 1

Repeal the items.

10 Item 51 of Schedule 3

Repeal the item.

11 Application of Part 2 amendments

The amendments made by Division 1 of Part 2 of this Schedule apply to:

the 2007-08 income year; and

later income years.

12 Effect of repeal

To avoid doubt, the following provisions are taken never to have had effect:

Note 1: The provision mentioned in paragraph (a) is repealed by Division 2 of Part 1 of this Schedule.

Note 2: The provisions mentioned in paragraph (b) are repealed by Division 2 of Part 2 of this Schedule.

(a) item 30 of the table in item 214 of Schedule 7 to the Tax Laws Amendment (2006 Measures No. 2) Act 2006;

(b) items 237, 238, 239 and 241 of Schedule 1, and item 51 of Schedule 3, to the Superannuation Legislation Amendment (Simplification) Act 2007.

Deductible gift recipients

Income Tax Assessment Act 1997

1 Subsection 30-25(2) (table item 2.2.21)

Omit “Dymocks Literacy Foundation Limited”, substitute “Dymocks Children’s Charities Limited”.

2 Section 30-315 (table item 45A)

Omit “Dymocks Literacy Foundation Limited”, substitute “Dymocks Children’s Charities Limited”.

Income Tax Assessment Act 1997

3 Subsection 30-40(2) (at the end of the table)

Add:

4 Section 30-315 (after table item 53)

Insert:

5 Section 30-315 (after table item 118A)

Insert:

6 Application provision

The amendments made by this Schedule apply in relation to assessments for:

the 2008-09 income year; and

later income years.

North Western Queensland floods

Income Tax Assessment Act 1936

1 Subsection 159J(6) (after paragraph (bb) of the definition of separate net income)

Insert:

Income Tax Assessment Act 1997

does not include an ex-gratia payment from the Commonwealth known as Income Recovery Subsidy for the North Western Queensland floods of January and February 2009; and

2 Section 11-15 (table item headed “welfare”)

After:

Insert:

3 Section 51-30 (at the end of the table)

Add:

Income Tax Assessment Act 1997

4 Section 11-15 (table item headed “welfare”)

Omit:

5 Section 51-30 (table item 5.4)

Repeal the item.

6 Application provision

The amendments made by Part 1 of this Schedule apply in relation to the 2008-09 income year.

Spirit blending

Excise Act 1901

1 At the end of Part VIIAA

Add:

77FM Spirit blending is to be treated as manufacture 1

Subject to subsection (2), for greater certainty so far as concerns the application of the provisions of this Act, spirit blending to produce spirit is taken to constitute the manufacture of that spirit.

For the purposes of this Act, spirit blending to produce spirit is taken not to constitute the manufacture of that spirit if the spirit blending occurred in circumstances specified in an instrument under subsection (3).

The CEO may, by legislative instrument, specify circumstances for the purposes of subsection (2).

Subsection (1) does not imply that, in the absence of such a provision, the blending of substances (whether spirit or not) would not constitute the manufacture of the substance produced by the blending.

Endnotes

Endnote 1—About the endnotes

The endnotes provide information about this compilation and the compiled law.

The following endnotes are included in every compilation:

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Abbreviation key—Endnote 2

The abbreviation key sets out abbreviations that may be used in the endnotes.

Legislation history and amendment history—Endnotes 3 and 4

Amending laws are annotated in the legislation history and amendment history.

The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.

The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.

Editorial changes

The Legislation Act 2003 authorises First Parliamentary Counsel to make editorial and presentational changes to a compiled law in preparing a compilation of the law for registration. The changes must not change the effect of the law. Editorial changes take effect from the compilation registration date.

If the compilation includes editorial changes, the endnotes include a brief outline of the changes in general terms. Full details of any changes can be obtained from the Office of Parliamentary Counsel.

Misdescribed amendments

A misdescribed amendment is an amendment that does not accurately describe the amendment to be made. If, despite the misdescription, the amendment can be given effect as intended, the amendment is incorporated into the compiled law and the abbreviation “(md)” added to the details of the amendment included in the amendment history.

If a misdescribed amendment cannot be given effect as intended, the abbreviation “(md not incorp)” is added to the details of the amendment included in the amendment history.

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history