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This is a Bill, not an Act. For current law, see the Acts databases.
2019-2020
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Treasury Laws Amendment (2020
Measures No. 1) Bill 2020
No. , 2020
(Treasury)
A Bill for an Act to amend the law relating to
taxation and superannuation, and for related
purposes
No. , 2020
Treasury Laws Amendment (2020 Measures No. 1) Bill 2020
i
Contents
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 1
3
Schedules ........................................................................................... 2
Schedule 1--Significant global entities
3
Income Tax Assessment Act 1997
3
Taxation Administration Act 1953
8
Schedule 2--Merging superannuation funds
11
Income Tax Assessment Act 1997
11
Superannuation Laws Amendment (Capital Gains Tax Relief and
Other Efficiency Measures) Act 2012
11
Tax Laws Amendment (2009 Measures No. 6) Act 2010
11
No. , 2020
Treasury Laws Amendment (2020 Measures No. 1) Bill 2020
1
A Bill for an Act to amend the law relating to
1
taxation and superannuation, and for related
2
purposes
3
The Parliament of Australia enacts:
4
1 Short title
5
This Act is the
Treasury Laws Amendment (2020 Measures No. 1)
6
Act 2020
.
7
2 Commencement
8
(1) Each provision of this Act specified in column 1 of the table
9
commences, or is taken to have commenced, in accordance with
10
column 2 of the table. Any other statement in column 2 has effect
11
according to its terms.
12
13
2
Treasury Laws Amendment (2020 Measures No. 1) Bill 2020
No. , 2020
Commencement information
Column 1
Column 2
Column 3
Provisions
Commencement
Date/Details
1. The whole of
this Act
The first 1 January, 1 April, 1 July or
1 October to occur after the day this Act
receives the Royal Assent.
Note:
This table relates only to the provisions of this Act as originally
1
enacted. It will not be amended to deal with any later amendments of
2
this Act.
3
(2) Any information in column 3 of the table is not part of this Act.
4
Information may be inserted in this column, or information in it
5
may be edited, in any published version of this Act.
6
3 Schedules
7
Legislation that is specified in a Schedule to this Act is amended or
8
repealed as set out in the applicable items in the Schedule
9
concerned, and any other item in a Schedule to this Act has effect
10
according to its terms.
11
Significant global entities
Schedule 1
No. , 2020
Treasury Laws Amendment (2020 Measures No. 1) Bill 2020
3
Schedule 1--Significant global entities
1
2
Income Tax Assessment Act 1997
3
1 Subdivision 815-E (heading)
4
Repeal the heading, substitute:
5
Subdivision 815-E--Reporting obligations for country by
6
country reporting entities
7
2 Section 815-350
8
Omit "Significant global entities", substitute "CBC reporting entities".
9
3 Paragraph 815-355(1)(a)
10
Omit "
*
significant global entity during a period", substitute "
*
CBC
11
reporting entity for a period".
12
4 Subparagraph 815-355(3)(a)(ii)
13
Repeal the subparagraph, substitute:
14
(ii) if you were a
*
member of a
*
CBC reporting group
15
during the previous income year--the other members of
16
that group;
17
5 At the end of Subdivision 815-E
18
Add:
19
815-370 Meaning of
country by country reporting entity
(or
CBC
20
reporting entity
)
21
An entity is a
country by country reporting entity
(or
CBC
22
reporting entity
) for a period if:
23
(a) the entity is a
*
CBC reporting parent for the period; or
24
(b) the entity is a
*
member of a
*
CBC reporting group during the
25
period and another member of that group is a CBC reporting
26
parent for the period.
27
Schedule 1
Significant global entities
4
Treasury Laws Amendment (2020 Measures No. 1) Bill 2020
No. , 2020
815-375 Meaning of
country by country reporting parent
(or
CBC
1
reporting parent
)
2
(1) An entity is a
country by country reporting parent
(or
CBC
3
reporting parent
) for a period if:
4
(a) the entity is
not
an individual; and
5
(b) if the entity is a
*
member of a
*
CBC reporting group at the
6
end of the period--it is an entity that, according to:
7
(i)
*
accounting principles; or
8
(ii) if accounting principles do not apply in relation to the
9
entity--commercially accepted principles related to
10
accounting;
11
is not controlled by any other member of the CBC reporting
12
group at the end of the period; and
13
(c) the entity's
*
annual global income for the period is $1 billion
14
or more.
15
(2) For the purposes of paragraph (1)(c), in working out the entity's
16
*
annual global income for the period, treat the reference in
17
paragraph 960-565(1)(aa) to
*
notional listed company group as
18
instead being a reference to
*
CBC reporting group.
19
815-380 Meaning of
country by country reporting group
(or
CBC
20
reporting group
)
21
(1) A group of entities is a
country by country reporting group
(or
22
CBC reporting group
) if:
23
(a) none of the entities is an individual; and
24
(b) any of the following requirements are satisfied:
25
(i) the group is consolidated for accounting purposes as a
26
single group;
27
(ii) the group is a
*
notional listed company group.
28
(2) Each entity in the group is a
member
of the
*
CBC reporting group.
29
(3) Subsection (5) applies if:
30
(a) all the members of a group that is consolidated for
31
accounting purposes as a single group (the
smaller group
)
32
are members of:
33
(i) another such group; or
34
Significant global entities
Schedule 1
No. , 2020
Treasury Laws Amendment (2020 Measures No. 1) Bill 2020
5
(ii) a
*
notional listed company group; and
1
(b) at least one entity is a member of the group mentioned in
2
subparagraph (a)(i) or (ii) but is not a member of the smaller
3
group.
4
(4) Subsection (5) also applies if:
5
(a) all the
*
members of a notional listed company group (the
6
smaller group
) are members of:
7
(i) another such group; or
8
(ii) a group that is consolidated for accounting purposes as a
9
single group; and
10
(b) at least one entity is a member of the group mentioned in
11
subparagraph (a)(i) or (ii) but is not a member of the smaller
12
group.
13
(5) For the purposes of subsection (1), treat the smaller group as not
14
being any of the following:
15
(a) a group that is consolidated for accounting purposes as a
16
single group;
17
(b) a
*
notional listed company group.
18
(6) For the purposes of this section, assume that
19
paragraph 960-575(4)(a) were disregarded:
20
(a) in determining whether a
*
notional listed company group
21
exists; and
22
(b) in identifying the
*
members of a notional listed company
23
group.
24
Note:
The effect of that assumption is that certain exceptions in accounting
25
or other principles to requirements to consolidate for accounting
26
purposes are taken into account in working out the membership of the
27
country by country reporting group. Where such exceptions apply, a
28
country by country reporting group may have fewer members than the
29
equivalent notional listed company group.
30
6 Subsection 960-50(7A)
31
Omit "a
*
global parent entity", substitute "an entity".
32
7 After subsection 960-555(2)
33
Insert:
34
(2A) An entity is also a
significant global entity
for a period if:
35
Schedule 1
Significant global entities
6
Treasury Laws Amendment (2020 Measures No. 1) Bill 2020
No. , 2020
(a) the entity is a
*
member of a
*
notional listed company group;
1
and
2
(b) one of the other members of the group is a
*
global parent
3
entity:
4
(i) whose
*
annual global income for the period is $1 billion
5
or more; or
6
(ii) in relation to whom the Commissioner makes a
7
determination under subsection (3) for the period.
8
8 Section 960-565
9
Before "The", insert "(1)".
10
9 Section 960-565
11
Omit "of a
*
global parent entity", substitute "of an entity".
12
10 Before paragraph 960-565(a)
13
Insert:
14
(aa) if the entity is a
*
member of a
*
notional listed company
15
group--the total annual income of all the members of the
16
group (worked out on the assumption that all members of the
17
group were consolidated for accounting purposes as a single
18
group); or
19
11 Paragraph 960-565(a)
20
Omit "if the entity", substitute "if paragraph (aa) does not apply and the
21
entity".
22
12 At the end of section 960-565
23
Add:
24
(2) Subsection (3) applies if:
25
(a)
*
global financial statements have not been prepared for the
26
entity for the period; or
27
(b) global financial statements have not been prepared for the
28
entity for the period that show the total annual income
29
mentioned in subsection (1).
30
(3) Despite subsection (1), the
annual global income
of the
*
entity for
31
the period is the amount that would be, on the assumption that such
32
Significant global entities
Schedule 1
No. , 2020
Treasury Laws Amendment (2020 Measures No. 1) Bill 2020
7
statements had been prepared, the total annual income mentioned
1
in subsection (1) shown in those statements.
2
13 Section 960-570
3
Omit "for a
*
global parent entity", substitute "for an entity".
4
14 At the end of Subdivision 960-U
5
Add:
6
960-575 Meaning of
notional listed company group
7
(1) A
notional listed company group
is a group of entities that would
8
be required to be consolidated for accounting purposes as a single
9
group, on the assumption that an entity (the
test entity
) were a
10
listed company (within the meaning of section 26BC of the
Income
11
Tax Assessment Act 1936
).
12
(2) Each entity in that group is a
member
of the
*
notional listed
13
company group.
14
(3) For the purposes of subsection (1), determine whether a group of
15
entities would be required to be consolidated for accounting
16
purposes as a single group according to:
17
(a)
*
accounting principles; or
18
(b) if accounting principles do not apply in relation to the test
19
entity--commercially accepted principles related to
20
accounting.
21
(4) In applying the
*
accounting principles or commercially accepted
22
principles referred to in subsection (3):
23
(a) disregard any exceptions in those principles to requirements
24
in those principles for entities to be consolidated as a single
25
group; and
26
(b) without limiting paragraph (a), disregard any rule in those
27
principles providing that one or more entities (the
excepted
28
entities
) are not
required to be consolidated as a single group
29
with one or more other entities because the effect of such
30
consolidation would be immaterial as a result of:
31
(i) the size of the excepted entities; or
32
(ii) any other matter.
33
Schedule 1
Significant global entities
8
Treasury Laws Amendment (2020 Measures No. 1) Bill 2020
No. , 2020
15 Subsection 995-1(1)
1
Insert:
2
CBC reporting entity
: see
country by country reporting entity
.
3
CBC reporting group
: see
country by country reporting group
.
4
CBC reporting parent
: see
country by country reporting parent
.
5
country by country reporting entity
has the meaning given by
6
section 815-370.
7
country by country reporting group
has the meaning given by
8
section 815-380.
9
country by country reporting parent
has the meaning given by
10
section 815-375.
11
16 Subsection 995-1(1) (after paragraph (bb) of the definition
12
of
member
)
13
Insert:
14
(bc) in relation to a
*
country by country reporting group--has the
15
meaning given by section 815-380; and
16
(bd) in relation to a
*
notional listed company group--has the
17
meaning given by section 960-575; and
18
17 Subsection 995-1(1)
19
Insert:
20
notional listed company group
has the meaning given by
21
section 960-575.
22
Taxation Administration Act 1953
23
18 Section 3CA (heading)
24
Repeal the heading, substitute:
25
Significant global entities
Schedule 1
No. , 2020
Treasury Laws Amendment (2020 Measures No. 1) Bill 2020
9
3CA Reporting of information by corporate country by country
1
reporting entities
2
19 Paragraph 3CA(1)(a)
3
Omit "significant global entity", substitute "country by country
4
reporting entity".
5
20 After subsection 3CA(1)
6
Insert:
7
(1A) However, this section does not apply to a corporate tax entity for
8
an income year if:
9
(a) the entity is a government related entity (within the meaning
10
of the
A New Tax System (Goods and Services Tax) Act
11
1999
); and
12
(b) the Commissioner has given notice to the entity for the
13
income year under subsection (1B).
14
(1B) For the purposes of paragraph (1A)(b), the Commissioner may give
15
notice in writing to a government related entity (within the
16
meaning of the
A New Tax System (Goods and Services Tax) Act
17
1999
) for one or more specified income years if the Commissioner
18
considers that it is appropriate to do so.
19
21 Application
20
(1)
The amendments made by this Schedule apply in relation to income
21
years or other periods starting on or after 1 July 2019.
22
(2)
To avoid doubt, the amendments made by this Schedule apply for the
23
purposes of working out whether an entity was a CBC reporting entity
24
for a period as mentioned in paragraph 815-355(1)(a) of the
Income Tax
25
Assessment Act 1997
(as amended by this Schedule), even if that period
26
started before 1 July 2019.
27
(3)
Subitem (4) applies if:
28
(a) an entity is a significant global entity for an income year or
29
other period that starts:
30
(i) on or after 1 July 2019; and
31
(ii) before 1 July 2020; and
32
Schedule 1
Significant global entities
10
Treasury Laws Amendment (2020 Measures No. 1) Bill 2020
No. , 2020
(b) disregarding the amendments made by this Schedule, the
1
entity would not be a significant global entity for that income
2
year or other period.
3
(4)
For the purposes of Divisions 284 and 286 in Schedule 1 to the
4
Taxation Administration Act 1953
, treat the entity as not being a
5
significant global entity for that income year or other period.
6
Merging superannuation funds
Schedule 2
No. , 2020
Treasury Laws Amendment (2020 Measures No. 1) Bill 2020
11
Schedule 2--Merging superannuation funds
1
2
Income Tax Assessment Act 1997
3
1 Section 310-1 (notes 1 and 2)
4
Repeal the notes, substitute:
5
Note:
This Division applies to mergers happening between 24 December
6
2008 and 30 June 2011 (or, in certain cases, 30 September 2011), or
7
mergers happening on or after 1 October 2011 (see Part 3 of
8
Schedule 2 to the
Tax Laws Amendment (2009 Measures No. 6) Act
9
2010
).
10
Superannuation Laws Amendment (Capital Gains Tax Relief
11
and Other Efficiency Measures) Act 2012
12
2 Item 19 of Schedule 1
13
Omit "during the period starting on 1 October 2011 and ending at the
14
end of 1 July 2020", substitute "on or after 1 October 2011".
15
Tax Laws Amendment (2009 Measures No. 6) Act 2010
16
3 Subsection 2(1) (table item 4)
17
Repeal the item.
18
4 Subitem 11(1) of Schedule 2
19
Omit "during the period starting on 1 October 2011 and ending at the
20
end of 1 July 2020", substitute "on or after 1 October 2011".
21
5 Subitem 11(1) of Schedule 2 (notes 1 and 2)
22
Omit "this period", substitute "the period or on or after 1 October
23
2011".
24
6 Parts 4 and 5 of Schedule 2
25
Repeal the Parts.
26
7 Application of amendments
27
The amendments made by items 1, 2, 4 and 5 of this Schedule apply in
28
relation to a transferring entity and a receiving entity if:
29
Schedule 2
Merging superannuation funds
12
Treasury Laws Amendment (2020 Measures No. 1) Bill 2020
No. , 2020
(a) the condition in subsection 310-10(3), 310-15(3) or
1
310-20(3) of the
Income Tax Assessment Act 1997
for those
2
entities is satisfied on or after 1 October 2011; and
3
(b) all of the transfer events (if any) referred to in
4
subsection 310-45(2) of that Act for those entities happen on
5
or after 1 October 2011.
6
Note 1: The effect of paragraph (a) is that all of the members of the original fund will need to
7
become members of a continuing fund on or after 1 October 2011.
8
Note 2: The effect of paragraph (b) is that the transferring entity needs to cease to hold all
9
relevant assets on or after 1 October 2011.
10