Tax Laws Amendment (Shipping Reform) Act 2012 (Cth)

Tax Laws Amendment (Shipping Reform) Act 2012

No. 57, 2012

An Act to amend the law relating to taxation, and for related purposes

Contents 1 Short title 2 Commencement 3 Schedule(s) Schedule 1—Exempt shipping income Income Tax Assessment Act 1997 Schedule 2—Capital allowances Part 1—Statutory capped life Income Tax Assessment Act 1997 Part 2—Balancing adjustment events and roll‑over relief Income Tax Assessment Act 1997 Schedule 3—Seafarer tax offset Income Tax Assessment Act 1997 Schedule 4—Exempting bareboat charters from royalty withholding tax Income Tax Assessment Act 1936 Schedule 5—Shipping information Taxation Administration Act 1953

Tax Laws Amendment (Shipping Reform) Act 2012 No. 57, 2012

An Act to amend the law relating to taxation, and for related purposes

[Assented to 21 June 2012]

The Parliament of Australia enacts:

1 Short title This Act may be cited as the Tax Laws Amendment (Shipping Reform) Act 2012.

2 Commencement This Act commences on the day this Act receives the Royal Assent.

3 Schedule(s) Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Exempt shipping income

Income Tax Assessment Act 1997

1 Section 11‑15 (after table item headed "resale royalty collecting societies") Insert: shipping income from shipping activities................. 51‑100

2 At the end of section 36‑10 Add: (5) For subsection (3), if you have *exempt income under section 51‑100 (about shipping), disregard 90% of so much of your *net exempt income as directly relates to that exempt income.

3 After subsection 36‑17(4) Insert: (4A) For subsection (3) or (4), if the entity has *exempt income under section 51‑100 (about shipping) for the later income year, disregard 90% of so much of the entity's *net exempt income for the later income year as directly relates to that exempt income.