Income Tax Assessment Amendment Act (No. 2) 1983 (Cth)

Income Tax Assessment Amendment Act (No. 2) 1983

No. 25 of 1983

An Act to amend the law relating to income tax

[Assented to 19 June 1983]

BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:

Short title, &c.

1. (1) This Act may be cited as the Income Tax Assessment Amendment Act (No. 2) 1983.

(2) The Income Tax Assessment Act 19361is in this Act referred to as the Principal Act.

Commencement

2. This Act shall come into operation on the day on which it receives the Royal Assent.

Deduction for cost of converting oil-fired plant

3. Section 53h of the Principal Act is amended by inserting “and before 20 May 1983” after “22 August 1979” in paragraphs (c) and (d) of the definition of “conversion costs” in sub-section (30).

 

Special depreciation on property used for storage of grain, hay or fodder

4. Section 57ae of the Principal Act is amended—

(a) by inserting in sub-sub-paragraphs (2) (a) (ii) (a) and (B) “and before 20 May 1983” after “19 July 1982”; and

(b) by omitting from paragraphs (4) (c) and (d) “sub-paragraph (2) (a) (ii)” and substituting “this section”.

Special depreciation on property used for primary production

5. Section 57ah of the Principal Act is amended by inserting in sub-sub-paragraphs (3) (a) (ii) (a) and (B) “and before 20 May 1983” after “19 July 1982”.

Special depreciation on storage facilities for petroleum fuel

6. Section 57aj of the Principal Act is amended—

(a) by inserting in sub-paragraphs (2) (c) (i) and (ii) “and before 20 May 1983” after “1 October 1980”; and

(b) by inserting after paragraph (2) (c) the following paragraph:

“(ca) the unit of property was, before 1 July 1984, used by the taxpayer for the purpose of producing assessable income or installed ready for use for that purpose and held in reserve;”.

Deduction in respect of plant installed on or after 22 August 1979

7. Section 82eb of the Principal Act is amended by inserting in sub-paragraphs (1) (b) (i) and (ii) “and before 20 May 1983” after “22 August 1979”.

Division not to apply to certain interest

8. Section 125 of the Principal Act is amended by omitting “or 128g” and substituting”, 128g or 128ga”.

Liability to withholding tax

9. Section 128b of the Principal Act is amended by omitting sub-paragraph (3) (h) (iv) and substituting the following sub-paragraph:

“(iv) interest specified in section 128e or to which section 128ea, 128f, 128g or 128ga applies; or”.

Certain income not included in assessable income

10. Section 128d of the Principal Act is amended by omitting “or section 128g” and substituting “, section 128g or section 128ga”.

 

Division not to apply to interest on borrowings by Australian Industry Development Corporation

11. Section 128ea of the Principal Act is amended by adding at the end thereof the following sub-section:

“(3) This section does not apply to interest paid on or after the date of commencement of this sub-section in respect of a loan raised in pursuance of a contractual obligation entered into on or after 20 May 1983.”.

Division not to apply to interest on certain loans

12. Section 128g of the Principal Act is amended by adding at the end thereof the following sub-section:

“(3) This section does not apply to interest paid on or after the date of commencement of this sub-section in respect of a loan raised in pursuance of a contractual obligation entered into on or after 20 May 1983.”.

13. After section 128g of the Principal Act the following section is inserted:

Division not to apply to interest on certain government loans and government authority loans

“128ga. (1) This section applies to interest in respect of a loan where—

(a) the loan was raised by an authority of the Commonwealth, by a State or by an authority of a State, in pursuance of a contractual obligation entered into on or after 20 May 1983;

(b) the Treasurer has issued a certificate under sub-section (3) in respect of the loan; and

(c) the loan was raised outside Australia.

“(2) An entity that has raised a loan the interest on which would, subject to the issue of a certificate under sub-section (3) in respect of the loan, be interest referred to in sub-section (1) may apply to the Treasurer in writing for the issue of such a certificate.

“(3) Subject to sub-section (4), where an application is made in accordance with sub-section (2) in respect of a loan, the Treasurer may issue to the applicant a certificate under this sub-section containing particulars of the loan.

“(4) The Treasurer shall not issue a certificate under sub-section (3) in respect of a loan if he is satisfied that the loan moneys will be used by an authority of the Commonwealth or of a State in competing directly with a non-government enterprise.

“(5) Tax is not payable, and shall be deemed not to have been payable, in accordance with this Division, in respect of interest to which this section applies.

“(6) In this section, ‘non-government enterprise’ means an enterprise carried on by an entity other than the Commonwealth, a State or an authority of the Commonwealth or of a State.”.

 

Premiums paid for basic health insurance

14. Section 159xa of the Principal Act is amended—

(a) by inserting in paragraph (2) (a) “or after 30 June 1983” after “1 July 1981”;

(b) by inserting in paragraph (2) (b) “and before 1 July 1983” after “after 1 July 1981”; and

(c) by inserting in sub-paragraph (2) (b) (i) “or after 30 June 1983” after “before 1 July 1981”.

Rebatable amounts

15. Section 159zna of the Principal Act is amended by inserting in paragraph (1) (b) “and before 1 July 1983” after “1 July 1982”.

Transitional

16. (1) Where—

(a) section 128ea or 128g of the Income Tax Assessment Act 1936 would, but for this section, apply in respect of interest (in this sub-section referred to as the “relevant interest”) paid before the date of commencement of this section in respect of a loan raised in pursuance of a contractual obligation entered into on or after 20 May 1983; and

(b) the Commissioner, having regard to the amount of the loan to which the relevant interest relates, the terms of the contractual obligation and the amount of the relevant interest, is satisfied that the whole or a part (which whole or part is in this sub-section referred to as the “disqualified interest”) of the relevant interest was paid before the date of commencement of this section, rather than at a later time, for the purpose of obtaining the benefit of the application of section 128ea or section 128g, as the case may be, of the Income Tax Assessment Act 1936,

section 128ea or 128g, as the case may be, of the Income Tax Assessment Act 1936 does not apply in relation to the disqualified interest.

(2) A person is not guilty of an offence by virtue of the operation of sub-section (1).

 

NOTE

1. No. 27, 1936, as amended. For previous amendments, see No. 88, 1936; No. 5, 1937; No. 46, 1938; No. 30, 1939; Nos. 17 and 65, 1940; Nos. 58 and 69, 1941; Nos. 22 and 50, 1942; No. 10, 1943; Nos. 3 and 28, 1944; Nos. 4 and 37, 1945; No. 6, 1946; Nos. 11 and 63, 1947; No. 44, 1948; No. 66, 1949; No. 48, 1950; No. 44, 1951; Nos. 4, 28 and 90, 1952; Nos. 1, 28, 45 and 81, 1953; No. 43, 1954; Nos. 18 and 62, 1955; Nos. 25, 30 and 101, 1956; Nos. 39 and 65, 1957; No. 55, 1958; Nos. 12, 70 and 85, 1959; Nos. 17, 18, 58 and 108, 1960; Nos. 17, 27 and 94, 1961; Nos. 39 and 98, 1962; Nos. 34 and 69, 1963; Nos. 46, 68, 110 and 115, 1964; Nos. 33, 103 and 143, 1965; Nos. 50 and 83, 1966; Nos. 19, 38, 76 and 85, 1967; Nos. 4, 60, 70, 87 and 148, 1968; Nos. 18, 93 and 101, 1969; No. 87, 1970; Nos. 6, 54 and 93, 1971; Nos. 5, 46, 47, 65 and 85, 1972; Nos. 51, 52, 53, 164 and 165, 1973; No. 216, 1973 (as amended by No. 20, 1974); Nos. 26 and 126, 1974; Nos. 80 and 117, 1975; Nos. 50, 53, 56, 98, 143, 165 and 205, 1976; Nos. 57, 126 and 127, 1977; Nos. 36, 57, 87, 90, 123, 171 and 172, 1978; Nos. 12, 19, 27, 43, 62, 146, 147 and 149, 1979; Nos. 19, 24, 57, 58, 124, 133, 134 and 159, 1980; Nos. 61, 92, 108, 109, 110, 111, 154 and 175, 1981; Nos. 29, 38, 39, 76, 80, 106 and 123, 1982; and No. 14, 1983.