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Treasury Laws Amendment (A Tax Plan for the COVID-19 Economic Recovery) Bill 2020

Type
Government
Portfolio
Treasury
Originating house
House of Representatives
Status
Act
Parliament no
46

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Summary

Amends: the Income Tax Rates Act 1986 to: bring forward, to the 2020-21 financial year, the increases to certain income tax thresholds; the Income Tax Assessment Act 1936, Income Tax Assessment Act 1997 and Taxation Administration Act 1953 to bring forward, to the 2020-21 financial year, the increase in the amount of the low income tax offset to $700; the Income Tax Assessment Act 1997 to: retain the low and middle income tax offset for the 2020-21 financial year; enable corporate tax entities with an aggregated turnover of less than $5 billion to carry back a tax loss for the 2019-20, 2020-21 or 2021-22 financial years and apply it against tax paid in a previous financial year back to the 2018-19 financial year; and extend the concept of tax benefits in the general anti-avoidance rule in Part IVA of the Income Tax Assessment Act 1936 to include the research and development (R&D) tax offset; the Income Tax Assessment Act 1936 to provide that the income tax general anti-avoidance rule applies to schemes entered into for the purpose of obtaining a low carry back tax offset; seven Acts to enable eligible entities with an aggregated turnover of $10 million or more and less than $50 million to access certain small business entity tax concessions; Income Tax Assessment Act 1997 and Tax Laws Amendment (Research and Development) Act 2015 to: permanently increase the R&D expenditure threshold from $100 million to $150 million; link the R&D tax offset for refundable R&D tax offset claimants to claimants' corporate tax rates plus an 18.5 percentage point premium; and increase the R&D tax incentive for larger R&D entities with high levels of R&D intensity; Income Tax Assessment Act 1997, Income Tax Rates Act 1986 and Income Tax (Transitional Provisions) Act 1997 to: remake and consolidate provisions relating to clawback of R&D recoupments and feedstock adjustments; introduce a new uniform clawback rule that applies for recoupments, feedstock adjustments and balancing adjustment amounts that are included in an R&D entity's assessable income; and introduce a new catch-up rule for R&D assets; Taxation Administration Act 1953 to require the Commissioner of Taxation to publish information about the R&D activities of R&D entities claiming the R&D tax offset; Industry Research and Development Act 1986 to: provide for the Board of Innovation and Science Australia (ISA) to make a determination, by notifiable instrument, about how it will exercise its powers and perform its functions and duties; and expand the existing power of the Board of ISA and its committees to delegate some or all of their functions to include certain members of the Australian Public Service; the Industry Research and Development Decision-making Principles 2011 to impose a three-month limit on the Board of ISA's ability to grant an extension of time; Income Tax (Transitional Provisions) Act 1997 to enable businesses with an aggregated turnover of less than $5 billion to deduct the full cost of eligible depreciating assets that are first held, and first used or installed ready for use for a taxable purpose, between the 2020 budget time and 30 June 2022; and Income Tax Assessment Act 1997 and Income Tax (Transitional Provisions) Act 1997 to extend the time by which assets that qualify for the enhanced instant asset write-off must be first used or installed ready for use for a taxable purpose until 30 June 2021.

Progress

House of Representatives
Introduced and read a first time 07 Oct 2020
Second reading moved 07 Oct 2020
Second reading debate 08 Oct 2020
Second reading agreed to 08 Oct 2020
Third reading agreed to 08 Oct 2020
Senate
Introduced and read a first time 08 Oct 2020
Second reading moved 08 Oct 2020
Second reading debate 08 Oct 2020
Second reading debate 09 Oct 2020
Second reading agreed to 09 Oct 2020
Committee of the Whole debate 09 Oct 2020
Third reading moved 09 Oct 2020
Third reading debated 09 Oct 2020
Third reading agreed to 09 Oct 2020
Finally passed both Houses 09 Oct 2020
Assent
  • Act no: 92
  • Year: 2020
14 Oct 2020

Documents and transcripts

Text of bill

Explanatory memoranda

Proposed amendments

Senate

Schedules of amendments

No documents at present

Notes

Helpful information

Text of bill

  • First reading: Text of the bill as introduced into the Parliament
  • Third reading: Prepared if the bill is amended by the house in which it was introduced. This version of the bill is then considered by the second house.
  • As passed by both houses: Final text of bill agreed to by both the House of Representatives and the Senate which is presented to the Governor-General for assent.

Explanatory memoranda

  • Explanatory memorandum: Accompanies and provides an explanation of the content of the introduced version (first reading) of the bill.
  • Supplementary explanatory memorandum: Accompanies and explains amendments proposed by the government to the bill.
  • Revised explanatory memorandum: Accompanies and explains the amended version (third reading) of the bill. It supersedes the explanatory memorandum.

Proposed amendments

Circulated by members and senators when they propose to make changes to the bill. For details about the outcome of proposed amendments please refer to either the Votes and Proceedings (House of Representatives) or the Journals (Senate).

Schedules of amendments

Schedules of amendments list amendments agreed to by the second house are communicated to the first house for consideration. Subsequent action by either house may also be included in a schedule.