The Tax and Superannuation Laws Amendment (2016 Measures No 2) Bill 2016 was introduced in the House of Reps on Thur 17.3.2016. It proposes the following amendments:

  • Commissioner’s remedial power – proposes to establish a remedial power to allow for a more timely resolution of certain unforeseen or unintended outcomes in the taxation and superannuation laws. The power allows the Commissioner to make, by disallowable legislative instrument, one or more modifications to the operation of a taxation law to ensure the law can be administered to achieve its intended purpose or object. The power can only be validly exercised under certain circumstances. Before exercising the power, the Commissioner must be satisfied that any appropriate and reasonably practicable consultation has been undertaken. DATE OF EFFECT: will commence on the day after Royal Assent.
  • Primary producer income averaging – proposes to amend the ITAA 1997 to allow eligible primary producers to access income tax averaging 10 income years after choosing to opt out, instead of that choice being permanent. DATE OF EFFECT: will apply to the 2016-17 income year and later income years.
  • Cars for display by public institutions – proposes to amend the A New Tax System (Luxury Car Tax) Act 1999 to provide relief from luxury car tax to certain public institutions that import or acquire luxury cars for the sole purpose of public display. DATE OF EFFECT: will apply to luxury cars that are imported or acquired from the day after the Bill receives Royal Assent.
  • Miscellaneous amendments – number of miscellaneous amendments to the taxation, superannuation and other laws. These amendments include style and formatting changes, the repeal of redundant provisions, the correction of anomalous outcomes and corrections to previous amending Acts. DATE OF EFFECT: various.

[LTN 52, 17/3/16] [APH website]


EXTRACT FROM BILL – Remedial Power

Guide to Division 370

370-1   What this Division is about

The Commissioner may determine a modification of the operation of a provision of a taxation law. The modification must not be inconsistent with the intended purpose or object of the provision. Furthermore:

      (a)     the Commissioner must consider the modification to be reasonable; and

      (b)     the Department, or the Finance Department, must advise that any impact of the modification on the Commonwealth budget would be negligible.

Example: After a provision of a taxation law is enacted, it is found that, because of developments in the practices of businesses or the Commissioner, the provision imposes disproportionate compliance costs on taxpayers. The Commissioner might, under this Division, be able to modify the operation of the provision to give timely relief.

An entity must not apply a modification if it would produce a less favourable result for the entity.

Note:       The Commissioner must include in the Commissioner’s annual report under section 3B of this Act information about the exercise of his or her powers under this Subdivision.

[APH website – Bill] [APH website – EM] [Related TT article]