This Act may be cited as the Taxation (Deficit Reduction) Act (No. 2) 1993.
2 Commencement [see Note 1]
(1) Subject to this section, this Act commences on the day on which it receives the Royal Assent.
(2) Subdivision B of Division 3 of Part 3 commences on 1 July 1995.
(3) Subdivision D of Division 3 of Part 3 commences on 1 July 2000.
(4) Subdivision C of Division 2 of Part 4 commences on 1 July 2000.
Part 2—Amendment of the Fringe Benefits Tax Act 1986 to give effect to an increase in the rate of FBT
3 Object of Part
The object of this Part is to increase the rate of fringe benefits tax from 48.25% to 48.4%.
4 Principal Act
In this Part, Principal Act means the Fringe Benefits Tax Act 1986.
5 Rate of tax
Section 6 of the Principal Act is amended by omitting “48.25%” and substituting “48.4%”.
6 Application of amendments
The amendments made by this Part apply to the year of tax beginning on 1 April 1994 and all later years of tax.
Part 3—Amendment of the Income Tax Assessment Act 1936
Division 1—Principal Act
7 Principal Act
In this Part, Principal Act means the Income Tax Assessment Act 1936.
Division 2—Amendments to allow deductions to registered organisations for expenditure incurred in gaining the investment component of certain premiums
8 Object of Division
The object of this Division is to allow deductions to registered organisations for expenditure incurred in gaining the investment component of certain premiums.
9 Interpretation
Section 116E of the Principal Act is amended by inserting the following definitions in subsection (1):
investment component, in relation to a premium received in respect of a life assurance policy, means so much of the premium as does not consist of a risk component.
risk component, in relation to a premium received in respect of a life assurance policy, means the risk component (if any) of the premium worked out on the basis specified in the regulations.
10 Insertion of new section
After section 116HA of the Principal Act the following section is inserted:
116HAA Deductions to be allowable for expenditure incurred in gaining the investment component of certain premiums
Premiums to which section applies
(1) This section applies to premiums received in respect of life assurance policies other than:
(a) superannuation premiums; or
(b) premiums received in respect of eligible policies; or
(c) specified roll-over amounts; or
(d) premiums exempt from tax under section 23AH.
Assumption to be made in determining allowable deductions
(2) For the purposes of determining the deductions allowable to a registered organization, the investment component of a premium to which this section applies is to be treated as assessable income.
Actuary’s certificate
(3) This section does not apply to premiums derived by a registered organization in a year of income unless the organization obtains a certificate by an authorised actuary with respect to the operation of this section. The certificate must be in a form approved in writing by the Commissioner. The organization must obtain the certificate:
(a) before the date of lodgment of the organization’s return of income of the year of income; or
(b) within such further time as the Commissioner allows.
Definition
(4) In this section:
authorised actuary means a Fellow or an Accredited Member of the Institute of Actuaries of Australia.
11 Application of amendments
The amendments made by this Division apply in relation to expenditure incurred by a registered organisation on or after 1 July 1994.
Division 3—Amendments relating to rebates for bonuses received by holders of life assurance policies issued by friendly societies
Subdivision A—Object of Division
12 Object of Division
The object of this Division is to increase the rebates for bonuses paid to holders of life assurance policies issued by friendly societies.
Subdivision B—Increase for 1995‑96, 1996‑97, 1997‑98, 1998‑99 and 1999‑2000
13 Rebate in respect of amounts assessable under section 26AH
(1) Section 160AAB of the Principal Act is amended by omitting “30%” from paragraph (a) of the definition of statutory percentage in subsection (1) and substituting “33%”.
(2) The amendments made by subsection (1) apply to amounts received (within the meaning of section 26AH of the Principal Act) on or after 1 July 1995.
Subdivision D—Increase for 2000‑2001 and later years
15 Rebate in respect of amounts assessable under section 26AH
(1) Section 160AAB of the Principal Act is amended:
(a) by omitting from subsection (1) the definition of statutory percentage;
(b) by omitting from subsections (2) to (6) (inclusive) “the statutory percentage” (wherever occurring) and substituting “39%”.
(2) The amendments made by subsection (1) apply to amounts received (within the meaning of section 26AH of the Principal Act) on or after 1 July 2000.
Part 4—Amendment of the Income Tax Rates Act 1986
Division 1—Principal Act
16 Principal Act
In this Part, Principal Act means the Income Tax Rates Act 1986.
Division 2—Registered organisations
Subdivision A—Preliminary
17 Object of Division
The object of this Division is to increase the rate of tax payable by a registered organisation in respect of its eligible insurance business.
Subdivision B—Rate for 1994‑95, 1995‑96, 1996‑97, 1997‑98, 1998‑99 and 1999‑2000
18 Rates of tax payable by companies
(1) Section 23 of the Principal Act is amended by omitting from paragraph (4)(b) “30%” and substituting “33%”.
(2) The amendments made by subsection (1) apply to assessments in respect of income of the 1994-95 year of income, of the 1995-96 year of income, of the 1996‑97 year of income, of the 1997‑98 year of income, of the 1998‑99 year of income and of the 1999‑2000 year of income.
Subdivision C—Rate for 2000‑01 and later years
19 Rates of tax payable by companies
(1) Section 23 of the Principal Act is amended by omitting from paragraph (4)(b) “33%” and substituting “39%”.
(2) The amendment made by subsection (1) applies to assessments in respect of income of the 2000‑01 year of income and of all later years of income.
Subdivision Subdivision D - Taxation (Deficit Reduction) Act (No. 2) 1993 - Increase for 2000‑2001 and later years | Zoe