Proposed changes to tax laws, updates on bills, and policy announcements
Tax Policy
(Clauses 14 and 46)
Changes are being made to update cross-references to schedules for the tax depreciation rules that take into account the changes that came into effect from 1 April 2005.
The reference to schedule 12 in section EE 30(3)(b) of the Income Tax Act 2007 is being replaced with schedule 11, which is the correct schedule for assets acquired after 1 April 2005. A reference to schedule 11 of the Income Tax Act 2007 is being added to sections 91AAH(2)(a) and 91AAH(3)(ab) of the Tax Administration Act 1994.
These changes ensure that the Commissioner is able to select the appropriate banded rates schedule when considering a special or provisional depreciation rate application. These changes are consistent with the original policy intent of having different banded rates applying to assets acquired on or after 1 April 2005.
The change applies from the 2008–09 and later income years.