Tax Laws Amendment (2012 Measures No. 3) Act 2012

No. 58, 2012 as amended

Compilation start date: 21 June 2012

Includes amendments up to: Act No. 110, 2014

About this compilation

This compilation

This is a compilation of the Tax Laws Amendment (2012 Measures No. 3) Act 2012 as in force on 21 June 2012. It includes any commenced amendment affecting the legislation to that date.

This compilation was prepared on 22 October 2014.

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of each amended provision.

Uncommenced amendments

The effect of uncommenced amendments is not reflected in the text of the compiled law but the text of the amendments is included in the endnotes.

Application, saving and transitional provisions for provisions and amendments

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

Modifications

If a provision of the compiled law is affected by a modification that is in force, details are included in the endnotes.

Provisions ceasing to have effect

If a provision of the compiled law has expired or otherwise ceased to have effect 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—Seasonal Labour Mobility Program 3

Income Tax Assessment Act 1936 3

Income Tax Assessment Act 1997 3

Income Tax (Transitional Provisions) Act 1997 7

Taxation Administration Act 1953 7

Schedule 2—Excise exemptions for certain blends of gaseous fuels and aviation fuels 12

Excise Act 1901 12

Excise Tariff Act 1921 13

Schedule 3—Low-income taxpayer rebate 14

Income Tax Assessment Act 1936 14

Schedule 4—Clean energy payments 15

Income Tax Assessment Act 1997 15

Schedule 5—Better targeting of the employment termination payment tax offset 18

Income Tax Assessment Act 1997 18

Endnotes 21

Endnote 1—About the endnotes 21

Endnote 2—Abbreviation key 23

Endnote 3—Legislation history 24

Endnote 4—Amendment history 25

Endnote 5—Uncommenced amendments [none] 26

Endnote 6—Modifications [none] 26

Endnote 7—Misdescribed amendments [none] 26

Endnote 8—Miscellaneous [none] 26

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 (2012 Measures No. 3) Act 2012.

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.	21 June 2012
2. Schedule 1	The later of: (a) the day this Act receives the Royal Assent; and (b) the day the Income Tax (Seasonal Labour Mobility Program Withholding Tax) Act 2012 receives the Royal Assent. However, the provision(s) do not commence at all if the event mentioned in paragraph (b) does not occur.	21 June 2012
3. Schedules 2 to 4	The day this Act receives the Royal Assent.	21 June 2012
4. Schedule 5	1 July 2012.	1 July 2012

Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be 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.

Seasonal Labour Mobility Program

Income Tax Assessment Act 1936

1 Subsection 170(10AA) (after table item 5)

Insert:

Income Tax Assessment Act 1997

2 Section 11-55 (table item headed “foreign aspects of income taxation”)

After:

insert:

3 Section 12-5 (table item headed “employees”)

After:

insert:

4 After section 26-25

Insert:

26-25A Seasonal Labour Mobility Program

No deduction to extent amount not withheld

Note: Section 16-70 in that Schedule requires you to pay the amount to the Commissioner.

Deduction to extent amount not withheld but withholding tax paid

(1) You cannot deduct under this Act salary, wages, commission, bonuses or allowances from which Subdivision 12-FC in Schedule 1 to the Taxation Administration Act 1953 (about the Seasonal Labour Mobility Program) requires you to withhold an amount, to the extent that:

you fail to withhold the amount; or

after withholding the amount, you fail to comply with section 16-70 in that Schedule in relation to that amount.

You can deduct, for an income year, salary, wages, commission, bonuses or allowances to the extent that:

you cannot deduct the salary, wages, commission, bonuses or allowances for that income year only because of subsection (1) of this section; and

the *Seasonal Labour Mobility Program withholding tax payable for the salary, wages, commission, bonuses or allowance is paid.

5 At the end of Division 840

Add:

Guide to Subdivision 840-S

840-900 What this Subdivision is about

If you are a foreign resident who is employed under the Seasonal Labour Mobility Program, you may be liable to pay income tax on the salary, wages etc. paid to you under that program.

Amounts on which there is a liability to pay the tax are non-assessable non-exempt income.

Table of sections

Operative provisions

840-905 Liability for Seasonal Labour Mobility Program withholding tax

840-910 When Seasonal Labour Mobility Program withholding tax is payable

840-915 Certain income is non-assessable non-exempt income

840-920 Overpayment of Seasonal Labour Mobility Program withholding tax

Operative provisions

840-905 Liability for Seasonal Labour Mobility Program withholding tax

You are liable to pay income tax at the rate declared by the Parliament on income:

Note 1: The tax, which is called Seasonal Labour Mobility Program withholding tax, is imposed by the Income Tax (Seasonal Labour Mobility Program Withholding Tax) Act 2012 and the rate of the tax is set out in that Act.

Note 2: See Subdivision 12-FC in Schedule 1 to the Taxation Administration Act 1953 for provisions dealing with withholding from the salary, wages etc. You are entitled to a credit under section 18-33 in that Schedule for amounts withheld from your salary, wages etc. under that Subdivision.

that is salary, wages, commission, bonuses or allowances paid to you as an employee of an Approved Employer under the Seasonal Labour Mobility Program; and

that you *derive at a time when:

you are a foreign resident; and

you hold a Special Program Visa (subclass 416).

840-910 When Seasonal Labour Mobility Program withholding tax is payable 1

*Seasonal Labour Mobility Program withholding tax is due and payable by you at the end of 21 days after the end of the income year in which you *derived the income to which the tax relates.

If any of the *Seasonal Labour Mobility Program withholding tax that you are liable to pay remains unpaid after the time by which it is due to be paid, you are liable to pay the *general interest charge on the unpaid amount for each day in the period that:

starts at the beginning of the day by which the withholding tax was due to be paid; and

ends at the end of the last day on which, at the end of the day, any of the following remains unpaid:

the withholding tax;

general interest charge on any of the withholding tax.

Note: The general interest charge is worked out under Taxation Administration Act 1953.Part IIA of the

The Commissioner may give you a notice specifying:

the amount of any *Seasonal Labour Mobility Program withholding tax that the Commissioner has ascertained is payable by you; and

the day on which that tax became due and payable.

The ascertainment of an amount of *Seasonal Labour Mobility Program withholding tax is not an assessment for the purposes of this Act.

The production of a notice given under subsection (3), or of a copy of it certified by or on behalf of the Commissioner, is, except in proceedings under Part IVC of this Act on a review or appeal relating to the notice, conclusive evidence that the notice was given and of the particulars in it.

(6) You may object, in the manner set out in Taxation Administration Act 1953, against a notice given to you under subsection (3) of this section, if you are dissatisfied with the notice.Part IVC of the

840-915 Certain income is non-assessable non-exempt income

An amount on which *Seasonal Labour Mobility Program withholding tax is payable is not assessable income and is not *exempt income.

840-920 Overpayment of Seasonal Labour Mobility Program withholding tax

If *Seasonal Labour Mobility Program withholding tax has been overpaid:

the Commissioner must refund the amount overpaid; and

(b) the employee is not entitled to a credit under Taxation Administration Act 1953 in respect of the amount overpaid.section 18-33 in Schedule 1 to the

6 Subsection 995-1(1)

Insert:

Seasonal Labour Mobility Program withholding tax means income tax payable under Subdivision 840-S.

Income Tax (Transitional Provisions) Act 1997

7 At the end of Division 840

Add:

Table of sections

840-905 Application of Subdivision 840-S of the Income Tax Assessment Act 1997

Subdivision 840-S of the Income Tax Assessment Act 1997 applies to income derived on or after 1 July 2012.

Taxation Administration Act 1953

8 Subsection 8AAB(4) (after table item 18)

Insert:

9 Subsection 10-5(1) in Schedule 1 (after table item 22C)

Insert:

10 After Subdivision 12-FB in Schedule 1

Insert:

Table of sections

12-319A Payment to employee

An entity must withhold an amount from salary, wages, commission, bonuses or allowances it pays to an individual:

as an employee of an Approved Employer (whether the entity or another entity) under the Seasonal Labour Mobility Program; and

at a time when:

the employee is a foreign resident; and

the employee holds a Special Program Visa (subclass 416).

11 Application of Subdivision 12-FC in Schedule 1 to the Taxation Administration Act 1953

Subdivision 12-FC in Schedule 1 to the Taxation Administration Act 1953, as inserted by this Schedule, applies to salary, wages, commission, bonuses or allowances paid on or after 1 July 2012.

12 Subsection 15-10(2) in Schedule 1

After “12-FB”, insert “, 12-FC”.

13 Subsection 15-15(1) in Schedule 1

After “Subdivision”, insert “12-FC or”.

14 Subsection 15-15(1) in Schedule 1 (after note 3)

Insert:

Note 3A: Subdivision 12-FC is about the Seasonal Labour Mobility Program.

15 Paragraph 16-153(1)(a) in Schedule 1

After “or Subdivision”, insert “12-FC or”.

16 After paragraph 16-195(1)(aa) in Schedule 1

Insert:

Subdivision 12-FC (Seasonal Labour Mobility Program); or

17 Section 18-1 in Schedule 1

After “or 12-285,” (wherever occurring), insert “Subdivision 12-FC,”.

18 Subsection 18-10(1) in Schedule 1

After “Subdivision 12-FA (about departing Australia superannuation payments),”, insert “Subdivision 12-FC (Seasonal Labour Mobility Program),”.

19 Group heading before section 18-30 in Schedule 1

Repeal the heading, substitute:

Entitlement to credits: dividend, interest or royalty, amount attributable to fund payment or Seasonal Labour Mobility Program

20 After section 18-32 in Schedule 1

Insert:

18-33 Credit: Seasonal Labour Mobility Program 1

An individual is entitled to a credit if:

the individual’s *ordinary income or *statutory income includes salary, wages, commission, bonuses or allowances; and

an amount is withheld from the salary, wages, commission, bonuses or allowances under Subdivision 12-FC (about the Seasonal Labour Mobility Program).

The amount of the credit is the *amount withheld.

21 Section 18-35 in Schedule 1 (heading)

Repeal the heading, substitute:

18-35 Credit: penalty under section 12-415, 16-30, 16-35 or 16-40 or related general interest charge 22 After subsection 18-35(1) in Schedule 1

Insert:

(1AA) If an entity has paid:

the entity liable to pay the *Seasonal Labour Mobility Program withholding tax for the withholding payment is entitled to a credit equal to the lesser of:

an amount of penalty under the Commissioner for a *withholding payment covered by Subdivision 12-FC (Seasonal Labour Mobility Program); orsection 16-30 or 16-35 to

an amount of *general interest charge under section 298-25 for the penalty;

the amount of the penalty, or general interest charge, as appropriate; and

(d) the amount of Seasonal Labour Mobility Program withholding tax (and any general interest charge under Income Tax Assessment Act 1997) in relation to the withholding payment, reduced by:section 840-910 of the

any credits from an application of section 18-33 in relation to the withholding payment; and

any credits from a previous application of this subsection in relation to the withholding payment.

23 Paragraph 18-35(2)(a) in Schedule 1

After “paragraph (1)(a)”, insert “, (1AA)(a)”.

24 Paragraph 18-35(2)(c) in Schedule 1

After “subsection (1)”, insert “, (1AA)”.

25 Paragraph 18-35(3)(a) in Schedule 1

After “paragraph (1)(b)”, insert “, (1AA)(b)”.

26 Paragraph 18-35(3)(c) in Schedule 1

After “subsection (1)”, insert “, (1AA)”.

27 Subsection 250-10(2) in Schedule 1 (after table item 39A)

Insert:

28 Subsection 340-10(2) in Schedule 1 (after paragraph (d) of table item 6, column headed “Provision(s)”)

Insert:

(da) Income Tax Assessment Act 1997; orsection 840-905 of the

Excise exemptions for certain blends of gaseous fuels and aviation fuels

Excise Act 1901

1 After subsection 77H(2)

Insert:

Blends of a relevant fuel that is not subject to remission

Blends of LPG or liquefied natural gas that is subject to remission or not subject to duty

(2A) Goods that are the product of the blending of amounts of one kind of relevant fuel are taken not to be goods covered by paragraph 10(g) of the Schedule to the Excise Tariff Act 1921 if both of the following apply:

none of the amounts of the relevant fuel are subject to a remission (either in full or in part) of excise duty or a duty of Customs;

excise duty or a duty of Customs that is payable on the amounts of the relevant fuel has been paid.

(2B) Goods that are the product of the blending of amounts of one kind of relevant fuel that is either LPG or liquefied natural gas are taken not to be goods covered by paragraph 10(g) of the Schedule to the Excise Tariff Act 1921 if, for each amount in the blend, either of the following applies to the amount:

the amount is subject to a remission (whether in full or in part) of excise duty or a duty of Customs on the grounds that the amount is not used, or intended for use, in an internal combustion engine in either a motor vehicle or a vessel;

the amount is not subject to excise duty or a duty of Customs because the amount was manufactured, produced or imported before 1 December 2011.

2 Subsection 77H(5) (heading)

Repeal the heading, substitute:

Definitions

3 Subsection 77H(5)

Insert:

relevant fuel means:

Excise Tariff Act 1921

gasoline for use in aircraft; or

kerosene for use in aircraft; or

LPG; or

liquefied natural gas; or

(e) compressed natural gas that is classified to subitem 10.19C of the Schedule to the Excise Tariff Act 1921.

4 Schedule (paragraph (g) of the cell at table item 10, column headed “Description of goods”)

After “subsection 77H(1)”, insert “, (2A), (2B)”.

5 Application

The amendments to the Excise Act 1901 and the Excise Tariff Act 1921 made by this Schedule apply in relation to goods that are the product of the blending of amounts of relevant fuel if the blending occurs on or after 1 July 2012 (whether the amounts of relevant fuel being blended were manufactured, produced or imported before, on or after that day).

Low-income taxpayer rebate

Income Tax Assessment Act 1936

1 At the end of section 159N

Add:

Rebate for a trustee assessed under section 98

A trustee who is liable to be assessed under section 98 in respect of a share of the net income of a trust estate in respect of a beneficiary is not entitled under this section to a rebate of tax in their assessment for the year of income to the extent Division 6AA applies to that share.

2 Application

The amendment made by this Schedule applies to assessments for the 2011-12 year of income and later years of income.

Clean energy payments

Income Tax Assessment Act 1997

1 Section 11-15 (table item headed “social security or like payments”)

After:

insert:

2 Section 11-15 (table item headed “social security or like payments”)

After:

insert:

3 Section 11-15 (table item headed “social security or like payments”)

After:

insert:

4 After paragraph 52-65(1)(b)

Insert:

(ba) clean energy payments under the scheme prepared under Veterans’ Entitlements Act 1986; orPart VII (about educating veterans’ children) of the

5 Subsection 52-65(1G)

Repeal the subsection, substitute:

Note: The supplementary amount of each other payment under the scheme mentioned in paragraph (b) is also exempt from income tax (see section 52-140).

The following are exempt from income tax:

(a) clean energy payments under the Veterans’ Entitlements Act 1986;

clean energy payments under the scheme prepared under Part VII (about educating veterans’ children) of that Act.

6 Section 52-75 (after table item 3A)

Insert:

7 Section 52-114 (table item 16)

Repeal the item, substitute:

8 At the end of section 52-114

Add:

Note: The supplementary amount of a payment covered by item 16 of the table made to a person aged 16 or over is also exempt from income tax (see section 52-140).

9 Subsection 52-131(2)

After “crisis payment”, insert “, or clean energy payment,”.

10 After paragraph 52-131(8)(a)

Insert:

a clean energy payment; or

11 At the end of section 52-132

Add:

; and (c) so much of the payment as is included by way of clean energy supplement.

12 At the end of subsection 52-140(3)

Add:

; and (c) so much of the payment as is included by way of clean energy supplement.

13 Section 53-10 (after table item 4C)

Insert:

14 At the end of section 53-15

Add:

and (c) for an exceptional circumstances relief payment—so much of the payment as is included by way of clean energy supplement, worked out as if the payment were the applicable payment of youth allowance, or newstart allowance, referred to in paragraph 24A(1)(a) of the Farm Household Support Act 1992.

15 Application of amendments 1

The amendments made by this Schedule (other than items 3 and 13) apply in relation to payments made in the 2011-12 income year or a later income year.

The amendments made by items 3 and 13 apply in relation to payments made in the 2012-13 income year or a later income year.

Better targeting of the employment termination payment tax offset

Income Tax Assessment Act 1997

1 Subsection 82-10(4)

Repeal the subsection, substitute:

Note 1: For the ETP cap amount, see section 82-160.

Note 2: If you have also received a death benefit termination payment in the same income year, your entitlement to a tax offset under this section is not affected by your entitlement (if any) to a tax concession for the death benefit termination payment (under section 82-65 or 82-70).

Note 3: Certain other life benefit termination payments made before 1 July 2012 may be treated as earlier payments under paragraph (4)(b): see Income Tax (Transitional Provisions) Act 1997.section 82-10H of the

The amount is so much of the *taxable component of the payment as does not exceed the smallest of the following:

the *ETP cap amount reduced (but not below zero) by:

(i) if the payment is a payment of a kind referred to in subsection (6) (an excluded payment)—the amount worked out under this subsection for each *life benefit termination payment you have received earlier in the income year to the extent that it is an excluded payment; or

if the payment is not an excluded payment—the amount worked out under this subsection for each life benefit termination payment you have received earlier in the income year;

the ETP cap amount reduced (but not below zero) by:

if the payment is an excluded payment—the amount worked out under this subsection for each life benefit termination payment you have received earlier in consequence of the same employment termination (whether in the income year or an earlier income year) to the extent that it is an excluded payment; or

if the payment is not an excluded payment—the amount worked out under this subsection for each life benefit termination payment you have received earlier in consequence of the same employment termination (whether in the income year or an earlier income year);

if the payment is not an excluded payment—$180,000, reduced (but not below zero) by your taxable income for the income year in which the payment is made.

In working out, for the purposes of paragraph (4)(c), your taxable income for the income year, disregard:

the taxable component of the payment; and

the taxable component of each *life benefit termination payment you receive later in the income year.

Paragraph (4)(c) does not apply in relation to *life benefit termination payments:

that are *genuine redundancy payments, or that would be genuine redundancy payments but for paragraph 83-175(2)(a); or

that are *early retirement scheme payments; or

that include *invalidity segments, or what would be invalidity segments included in such payments but for paragraph 82-150(1)(c); or

that:

are paid in connection with a genuine dispute; and

are principally compensation for personal injury, unfair dismissal, harassment, discrimination or a matter prescribed by the regulations; and

iii

exceed the amount that could, at the time of the termination of your employment, reasonably be expected to be received by you in consequence of the voluntary termination of your employment.

If the payment is partly an excluded payment:

subsection (4) applies as if the payment were 2 payments as follows:

first, a payment consisting only of the part of the payment that is an excluded payment;

second, another payment, made immediately after the first payment, consisting only of the part of the payment that is not an excluded payment; and

subsection (4) applies to the second payment as if a reference in subsection (5) to the taxable component of a payment were a reference to so much of the taxable component as relates to the part of the payment that is not an excluded payment.

Despite subsections (4) and (7), the amount mentioned in subsection (4) in relation to the payment must not exceed either of the following:

the *ETP cap amount reduced (but not below zero) by the amount worked out under subsection (4) for each *life benefit termination payment you have received earlier in the income year;

the ETP cap amount reduced (but not below zero) by the amount worked out under subsection (4) for each life benefit termination payment you have received earlier in consequence of the same employment termination (whether in the income year or an earlier income year).

2 Application of amendment

The amendment made by this Schedule applies in relation to life benefit termination payments received on or after 1 July 2012.

Endnotes

Endnote 1—About the endnotes

The endnotes provide details of the history of this legislation and its provisions. The following endnotes are included in each compilation:

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Endnote 5—Uncommenced amendments

Endnote 6—Modifications

Endnote 7—Misdescribed amendments

Endnote 8—Miscellaneous

If there is no information under a particular endnote, the word “none” will appear in square brackets after the endnote heading.

Abbreviation key—Endnote 2

The abbreviation key in this endnote 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 the compiled law. The information includes commencement information for amending laws and details of 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 level. It also includes information about any provisions that have expired or otherwise ceased to have effect in accordance with a provision of the compiled law.

Uncommenced amendments—Endnote 5

The effect of uncommenced amendments is not reflected in the text of the compiled law but the text of the amendments is included in endnote 5.

Modifications—Endnote 6

If the compiled law is affected by a modification that is in force, details of the modification are included in endnote 6.

Misdescribed amendments—Endnote 7

An amendment is a misdescribed amendment if the effect of the amendment cannot be incorporated into the text of the compilation. Any misdescribed amendment is included in endnote 7.

Miscellaneous—Endnote 8

Endnote 8 includes any additional information that may be helpful for a reader of the compilation.

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Endnote 5—Uncommenced amendments [none]

Endnote 6—Modifications [none]

Endnote 7—Misdescribed amendments [none]

Endnote 8—Miscellaneous [none]