The Assistant Treasurer introduced the Tax and Superannuation Laws Amendment (2016 Measures No 2) Bill 2016 in the House of Reps on Wed 14.9.2016. It contains the following amendments:

  • REMEDIAL POWER: proposes to establish a Remedial Power for the Commissioner of Taxation 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 where:
    • the modification is not inconsistent with the intended purpose or object of the provision;
    • the Commissioner considers the modification to be reasonable, having regard to both the intended purpose or object of the relevant provision and whether the costs of complying with the provision are disproportionate to achieving the intended purpose or object; and
    • the Department of the Treasury or the Department of Finance advises the Commissioner that any impact on the Commonwealth budget would be negligible.
    • Date of effect: This measure would commence on the day after Royal Assent. This would allow the Commissioner to make legislative instruments from that date to modify the operation of a taxation law.
  • PRIMARY PRODUCER AVERAGING: the Bill proposes to amend the ITAA 1997 to allow primary producers to access income tax averaging 10 income years after choosing to opt out, instead of that choice being permanent. Date of effect: This change would apply to the 2016-17 income year and later income years.
  • LCT RELIEF: the Bill would amend the A New Tax System (Luxury Car Tax) Act 1999 to provide relief from luxury car tax (LCT) to certain public institutions that import or acquire luxury cars for the sole purpose of public display. The changes would apply to public museums, galleries, and libraries that are registered for goods and services tax and that have been endorsed as deductible gift recipients. Date of effect: These amendments would apply to luxury cars that are imported or acquired from the day after the Bill receives Royal Assent.
  • MISC AMENDMENTS: The Bill proposes to make a 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.

[APH website – Bills Digest; Bill; Explanatory Memorandum] [LTN 178, 14/9/16]

Taxation Administration Act 1953, First Schdule

[Proposed] 370-5 Commissioner’s remedial power

(1) The Commissioner may, by legislative instrument, determine a modification of the operation of a provision of a *taxation law if:

(a) the modification is not inconsistent with the intended purpose or object of the provision; and

(b) the Commissioner considers the modification to be reasonable, having regard to:

(i)  the intended purpose or object of the provision; and

(ii)  whether the cost of complying with the provision is disproportionate to that intended purpose or object; and

(c)  any of the following persons advises the Commissioner that any impact of the modification on the Commonwealth budget would be negligible:

(i)  the Secretary of the Department, or an APS employee in the Department who is authorised by the Secretary for the purposes of this paragraph;

(ii)  the *Finance Secretary, or an APS employee in the *Finance Department who is authorised by the Finance Secretary for the purposes of this paragraph.

 (2)  If the Commissioner determines a modification of the operation of a provision of a *taxation law under subsection (1), the provision operates with the modification.

Scope of determination

(3)  A modification applies generally, unless the determination states that the modification only applies:

(a) to a specified class of entities; or

(b) in specified circumstances.

(4)  An entity (the first entity) must treat a modification as:

(a) not applying to the first entity; and
(b) not applying to any other entity;

if the modification would produce a less favourable result for the first entity.

(5)  If the Commissioner determines a modification of the operation of a provision of a *taxation law, the modification (as applied by subsection (2)) does not affect a right or liability under an order (including any judgment, conviction or sentence) made by a court before the commencement of the determination.