This Supplementary Order Paper amends Part 1 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Bill (child support remedial matters) by amending clauses 41(2) and 50 and inserting new clauses 44E and 64A. The amendment to clause 41(2) clarifies that the new offsetting provision in new section 105(2)(e) of the Child Support Act 1991 (inserted by clause 40(4)) is not to apply to a liability to pay child support in respect of a period if the person in whose favour the child support is payable is a social security beneficiary during that period. New clause 44E makes a corresponding amendment to the existing offsetting provision in section 152B of the Child Support Act 1991. The amendments to clause 50 are minor and consequential. New clause 64A amends section 70A of the Social Security Act 1964 (which provides for reductions of social security benefits in support of the administration of the Child Support Act 1991) to make a change corresponding to the change to the definition of social security benefit in the Child Support Act 1991 being made by clause 4(3) and (4).
The Supplementary Order Paper also makes amendments to other Parts of the bill. Some amendments provide for criteria, relating to beneficiaries or clients of a community housing trust or company, that determine whether the trust or company is a community housing entity for the purposes of section CW 42B of the Income Tax Act 2007. As part of those amendments, clause 75D(4) is replaced so that it amends section CW 42B(3) to refer to the criteria in new schedule 34 of the Income Tax Act 2007. The schedule is inserted by new clause 218B and new schedule 1B. In addition, new clause 247B is inserted to amend section 225D of the Tax Administration Act 1994. Clause 247B(1) replaces section 225D(1) with a provision that authorises an Order in Council to amend the figures in new schedule 34. Clause 247B(2) repeals section 225D(2).
Amendments to clause 192 relate to an option that is available to a taxpayer in determining whether the taxpayer is eligible for the R&D tax credits that are proposed in the bill. Under proposed section MX 3 of the Income Tax Act 2007, the taxpayer may choose to include listed amounts as part of expenditure on employees. The amendments clarify that all the amounts in the list must be included if the taxpayer uses the option.
New clause 251D amends the Goods and Services Tax Act 1985 by inserting a transitional provision relating to the optional registration of unit title bodies corporate. New section 21HC provides for registered persons who, in the period between 1 October 2011 and the introduction of the Bill, have been members of a unit title body corporate that is not a registered person and that has received taxable supplies and used those supplies in making supplies to members. A member who has claimed input tax relating to the taxable supplies received by the unit title body corporate is allowed to deduct input tax equal to a proportion, given by the member’s ownership interest in the unit title body corporate under the Unit Titles Act 2010, of the input tax that the unit title body corporate could have claimed in relation to a taxable activity of making supplies to members.
Amendments to clause 218 reflect a change, on 28 March 2011, in the name of an entity that is listed in schedule 32 of the Income Tax Act 2007 as a recipient of charitable or other public benefit gifts.
Minor amendments are made to clauses 69B, 71, 73, 140, 143, 151B, 153, 213, 217, 251, 251C, 263, 265, and 265B, and schedules 1 and 2 and by new clause 79B. In clauses 69B(1) and 71(8), wording is corrected for consistency of style. In clauses 73, 251C, and 265B, the heading is corrected. In new clause 79B and clauses 140(5), 153(1), 213(14), and 251(1), cross-references are corrected. In clause 143, punctuation is changed. Clauses 151B(3), 153(2), 213(22), 263, and 265and 2 entries in schedule 2 are unnecessary, because of other changes, and are removed. In clause 213(27)(a), a missing word is inserted. In clauses 213(47) and (60) and 217(1), the place where an amendment is to be made is clarified. In schedule 1, an additional cross-reference is included in the shoulder note for the inserted schedule.