Income Tax Assessment Amendment Act (No. 4) 1980 (Cth)
[
BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:
“26ae. (1) Subject to sub-section (2), this section applies to a benefit that is received by a taxpayer from a paragraph 23(ja) fund or a section 79 fund, being a benefit that—
(a) is paid after 19 August 1980;
(b) is received by the taxpayer by reason that the taxpayer is or was a member of the fund;
(c) is paid in accordance with the terms and conditions applicable to the fund at the time of payment;
(d) is not income; and
(e) is not a benefit to which section 26af applies and is not an allowance, a gratuity or compensation to which paragraph (d) of section 26 applies.
“(2) This section does not apply to a benefit that is received by a taxpayer during a year of income from a paragraph 23(ja) fund or a section 79 fund unless a deduction is allowable to the taxpayer in relation to that year of income, or was allowable to the taxpayer in relation to any preceding year of income, under section 82aatin respect of a contribution or contributions made by the taxpayer to that fund.
“(3) Where in a year of income a taxpayer receives from a fund a benefit to which this section applies, 5% of so much of the amount of the benefit as is attributable to—
(a) contributions made to the fund after 19 August 1980 by the taxpayer or by any other person; or
(b) income of, or other accretions to, the fund attributable to contributions made to the fund after 19 August 1980 by the taxpayer or by any other person,
shall be included in the assessable income of the taxpayer of the year of income.
“(4) In this section—
‘paragraph 23(ja) fund’ means a fund the income of which of any year of income is or has been exempt from tax by virtue of paragraph (ja) of section 23 or would, but for the provisions of section 121c, be, or have been, exempt from tax by virtue of that paragraph;
‘section 79 fund’ means a fund to which section 79 applies, or has applied, in relation to any year of income.
“26af. (1) Where—
(a) in a year of income and after 19 August 1980, a taxpayer receives or obtains a benefit of any kind out of, or attributable to assets of, a paragraph 23 (ja) fund or a section 79 fund;
(b) the benefit is received or obtained otherwise than in accordance with approved terms and conditions applicable to the fund at the time when the benefit is received or obtained; and
(c) the Commissioner is satisfied that the taxpayer received or obtained the benefit—
(i) by reason that the taxpayer was, or had been, a member of the fund;
(ii) by reason that the taxpayer was, or had been, a dependent of a person who was, or had been, a member of the fund; or
(iii) by reason that the taxpayer was, or had been, associated with a person who was, or had been, a member of the fund,
the assessable income of the taxpayer of the year of income shall, notwithstanding paragraph (d) of section 26, include the amount or value of that benefit.
“(2) Where, in a year of income and after 19 August 1980, a taxpayer receives valuable consideration in respect of the transfer by the taxpayer to another person (whether by assignment, by declaration of trust or by any other means) of a right (whether vested or contingent) to receive a benefit from a paragraph 23 (ja) fund or a section 79 fund, the assessable income of the taxpayer of the year of income shall include the amount or value of that consideration.
“(3) In this section—
‘approved terms and conditions’, in relation to a fund, means—
(a) in the case of a paragraph 23(ja) fund—terms and conditions approved by the Commissioner under sub-paragraph (ii) of paragraph (ja) of section 23; or
(b) in the case of a section 79 fund—terms and conditions approved by the Commissioner under sub-section (2) of section 79;
‘paragraph 23 (ja) fund’ means a fund the income of which of any year of income is or has been exempt from tax by virtue of paragraph (ja) of section 23 or would, but for the provisions of section 121c, be, or have been, exempt from tax by virtue of that paragraph;
‘section 79 fund’ means a fund to which section 79 applies, or has applied, in relation to any year of income.”.
(a) by inserting after sub-section (1) the following sub-section:
“(1a) Where—
(a) live stock, being assets of a business of primary production carried on in Australia by a taxpayer, a partnership or the trustee of a trust estate—
(i) die by reason of a disease for the purpose of controlling or eradicating which provision is made by a law of the Commonwealth, of a State or of a Territory for or in relation to the compulsory destruction of live stock; or
(ii) are destroyed in pursuance of a law of the Commonwealth, of a State or of a Territory that makes provision for or in relation to the compulsory destruction of live stock for the purpose of controlling or eradicating a disease;
(b) the proceeds of the death of the live stock would, apart from this section, be included in the assessable income of the taxpayer, the partnership or the trust estate, of a year or years of income;
(c) there is a profit on the death of the live stock;
(d) no election has been made under section 36aa in relation to that profit; and
(e) it is established to the satisfaction of the Commissioner that the proceeds of the death of the live stock have been or will be applied by the taxpayer, the partnership or the trustee, as the case may be, wholly or principally in the purchase of live stock, or in the maintenance of breeding stock, for the purpose of replacing the live stock that died or were destroyed,
the taxpayer, the partnership or the trustee, together with each beneficiary entitled to make an election under section 36aain relation to that profit, as the case may be, may, in lieu of any election that a person is entitled to make under section 36aain relation to that profit, elect that this section shall apply in relation to that profit and in relation to the proceeds of the death of the live stock.”;
(b) by omitting from sub-section (2) “the last preceding sub-section in relation to the disposal of live stock” and substituting “sub-section (1) in relation to the disposal of live stock or under sub-section (1a) in relation to the death or destruction of live stock”;
(c) by omitting paragraph (a) of sub-section (2) and substituting the following paragraphs:
“(a) if the election is an election under sub-section (1), the assessable income of the taxpayer, the partnership or the trust estate, as the case may be, of the year of income to which the election relates shall be reduced by an amount equal to the profit on the disposal of the live stock;
“(aa) if the election is an election under sub-section (1a)
— (i) the whole of the proceeds of the death of the live stock to which the election relates (whenever received) shall be included in the assessable income of the taxpayer, the partnership or the trust estate, as the case may be, of the year of income to which the election relates and no part of those proceeds shall be included in the assessable income of the taxpayer, the partnership or the trust estate, as the case may be, of any other year of income; and
(ii) the assessable income of the taxpayer, the partnership or the trust estate, as the case may be, of the year of income to which the election relates shall be reduced by an amount equal to the profit on the death of the live stock;”;
(d) by omitting from paragraph (b) of sub-section (2) “referred to in the last preceding paragraph” and substituting “to which the election relates”;
(e) by omitting from paragraph (b) of sub-section (2) “disposed of and substituting “to which the election relates”;
(f) by inserting in sub-paragraph (ii) of paragraph (b) of sub-section (2) “or death” after “disposal” (wherever occurring);
(g) by omitting paragraph (c) of sub-section (2) and substituting the following paragraph:
“(c) if, in relation to the year of income to which the election under sub-section (1) or (1a) relates or any of the next 5 succeeding years of income, the taxpayer, the partnership or trustee, as the case may be, makes an election under sub-section (4), there shall be included in the assessable income of the taxpayer, the partnership or the trust estate, as the case may be, of the year of income to which the election under sub-section (4) relates the amount specified in the election; and”;
(h) by omitting from paragraph (d) of sub-section (2) “referred to in paragraph (a)” and substituting “to which the election under sub-section (1) or (1a) relates”;
(j) by inserting in paragraph (d) of sub-section (2) “or death” after “disposal”;
(k) by omitting from sub-section (3) “disposed of by the taxpayer, the partnership or the trustee, as the case may be,” and substituting “that were disposed of or that died or were destroyed”;
(l) by omitting sub-paragraph (i) of paragraph (a) of sub-section (3) and substituting the following sub-paragraph:
“(i) an amount ascertained by dividing the profit on the disposal or death of live stock of that species by the number of live stock of that species that were disposed of or that died or were destroyed; or”;
(m) by omitting sub-paragraph (i) of paragraph (b) of sub-section (3) and substituting the following sub-paragraph:
“(i) an amount ascertained by dividing the profit on the disposal or death of live stock of the species of live stock that the live stock purchased replace by the number of live stock of that species that were disposed of or that died or were destroyed; or”;
(n) by omitting from paragraph (c) of sub-section (3) “disposed of and substituting “that were disposed of or that died or were destroyed”;
(o) by inserting in sub-section (4) “or (1a)” after “sub-section (1)”;
(p) by omitting from sub-section (4) “disposed of and substituting “that were disposed of or that died or were destroyed”;
(q) by inserting in paragraph (a) of sub-section (5) “or under sub-section (1a) in relation to the death or destruction of live stock” after “live stock”;
(r) by omitting from sub-paragraph (iii) of paragraph (b) of sub-section (5) “disposed of and substituting “that were disposed of or that died or were destroyed”;
(s) by inserting in sub-section (5) “or death” after “on the disposal”;
(t) by inserting in paragraph (a) of sub-section (6) “or under sub-section (1a) in relation to the death or destruction of live stock” after “live stock”;
(u) by omitting from sub-paragraph (ii) of paragraph (b) of sub-section (6) “disposed of and substituting “that were disposed of or that died or were destroyed”;
(v) by inserting in sub-section (6) “or death” after “on the disposal”;
(w) by inserting in paragraph (a) of sub-section (7) “or under sub-section (1a) in relation to the death or destruction of live stock” after “live stock”;
(x) by inserting in sub-section (7) “or death” after “on the disposal”;
(y) by omitting from paragraph (a) of sub-section (8) “disposed of and substituting “that were disposed of or that died or were destroyed”;
(z) by inserting in sub-section (8) “, death or destruction” after “disposal”;
(za) by inserting in paragraph (a) of sub-section (9) “or under sub-section (1a) in relation to the death or destruction of live stock” after “live stock”;
(zb) by omitting from sub-paragraph (iii) of paragraph (b) of sub-section (9) “disposed of and substituting “that were disposed of or that died or were destroyed”;
(zc) by inserting in sub-section (9) “or death” after “on the disposal”;
(zd) by inserting in paragraph (a) of sub-section (10) “or under sub-section (1a) in relation to the death or destruction of live stock” after “live stock”;
(ze) by inserting in sub-section (10) “or death” after “on the disposal”;
(zf) by inserting in paragraph (a) of sub-section (11) “or under sub-section (1a) in relation to the death or destruction of live stock” after “live stock”;
(zg) by omitting from paragraph (b) of sub-section (11) “that disposal exceeds the amount that is the reduced profit on that disposal” and substituting “the disposal, death or destruction of the live stock exceeds the amount that is the reduced profit on the disposal or death of the live stock”;
(zh) by inserting in paragraph (a) of sub-section (12) “or under sub-section (1a) in relation to the death or destruction of live stock” after “live stock”;
(zj) by inserting in paragraph (b) of sub-section (12) “, died or were destroyed” after “were disposed of;
(zk) by omitting from paragraph (b) of sub-section (12) “stock disposed of and substituting “stock that were disposed of or that died or were destroyed”;
(zl) by inserting in sub-section (12) “, or in relation to the death or destruction,” after “disposal” (last occurring);
(zm) by inserting in sub-section (13) “or in relation to live stock that, being an asset of a business carried on by a taxpayer or by the trustee of a trust estate, died or were destroyed” after “trustee of a trust estate”;
(zn) by omitting paragraph (a) of sub-section (13) and substituting the following paragraph:
“(a) this section, other than paragraphs (a) and (aa) of sub-section (2), shall, subject to the succeeding paragraphs of this sub-section, apply in relation to the partnership in respect of the disposal, death or destruction of the live stock as if the live stock had been an asset of a business carried on by the partnership at the time when the live stock were disposed of, died or were destroyed and the election by the partnership under sub-section (12) had been an election by the partnership under sub-section (1) in relation to the disposal of the live stock or under sub-section (1a) in relation to the death or destruction of the live stock, as the case may be;”;
(zo) by inserting in paragraph (b) of sub-section (13) “or death” after “disposal” (wherever occurring);
(zp) by inserting in paragraph (c) of sub-section (13) “or death” after “disposal” (wherever occurring);
(zq) by inserting in paragraph (d) of sub-section (13) “or (1a)” after “sub-section (1)”;
(zr) by omitting from paragraph (d) of sub-section (13) “that sub-section” and substituting “sub-section (1) or sub-section (1a), as the case may be,”;
(zs) by inserting in paragraph (f) of sub-section (13) “or death” after “disposal”;
(zt) by inserting after paragraph (a) of sub-section (14) the following paragraph:
“(aa) in the case of an election under sub-section (1a)—
(i) if the whole of the proceeds of the death of the live stock to which the election relates were received in one year of income—on or before the date of lodgment of the return of income of that year of income; or
(ii) if the proceeds of the death of the live stock to which the election relates were received in 2 or more years of income—on or before the date of lodgment of the return of income of the later or latest of those years of income;”;
(zu) by omitting from paragraph (d) of sub-section (14) “disposed of and substituting “that were disposed of or that died or were destroyed”;
(zv) by omitting sub-section (16) and substituting the following sub-section:
“(16) Where an election has been made by a taxpayer, a partnership or the trustee of, or the trustee of and any beneficiaries in, a trust estate under sub-section (1) in relation to the disposal of live stock or under sub-section (1a) in relation to the death or destruction of live stock, the reduced profit on the disposal or death of the live stock on any day is, for the purposes of this section, the profit on the disposal of the live stock or the profit on the death of the live stock, as the case may be, less the sum of—
(a) an amount equal to the total consideration actually paid for live stock purchased by the taxpayer, the partnership or the trust estate, as the case may be, on or before that day to replace any live stock disposed of or to replace any live stock that died or were destroyed, as the case may be, less the total of the amounts that, by virtue of paragraph (b) of sub-section (2), are deemed to be the purchase prices of the animals included in the live stock so purchased; and
(b) each amount that, by virtue of this section, is included or required to be included, in relation to the disposal or the death or destruction of the live stock, in the assessable income of the taxpayer, the partnership or the trust estate, as the case may be, of any year of income prior to the year of income in which that day falls.”;
(zw) by omitting sub-section (18) and substituting the following sub-section:
“(18) Live stock of a particular species purchased by a taxpayer, partnership or trustee shall not, for the purposes of this section, be treated as replacing live stock of another species that, being an asset of a business carried on by the taxpayer, partnership or trustee, were disposed of, died or were destroyed unless the Commissioner is satisfied that the taxpayer, partnership or trustee purchased the live stock for the purpose of replacing live stock of that other species.”; and
(zx) by adding at the end thereof the following sub-sections:
“(20) In this section, a reference to the proceeds of the death of any live stock shall be read as a reference to the sum of—
(a) any amount received by the person who owned the live stock from the Commonwealth, from a State, from a Territory or from an authority constituted by or under a law of the Commonwealth, of a State or of a Territory by way of compensation for the death or destruction of the live stock; and
(b) any amount received by the person who owned the live stock as payment for the carcases, or any part of the carcases, of the live stock.
“(21) In this section, a reference to profit on the death of any live stock shall be read as a reference to the amount remaining after deducting from the proceeds of the death of the live stock the sum of—
(a) in respect of any of the live stock that were on hand at the beginning of the year of income in which the live stock died or were destroyed—the value at which that live stock is, for the purposes of this Act, to be taken into account at the beginning of that year of income; and
(b) in respect of any of the live stock that were not on hand at the beginning of that year of income—
(i) in the case of live stock acquired by purchase—the purchase price of that live stock; and
(ii) in the case of live stock acquired otherwise than by purchase, but not including natural increase bred during that year of income by the person who owned the live stock at the time of the death or destruction—the amount that, under this Act, is deemed to be the purchase price of that live stock.
“(22) Sub-section (21) has effect for the purpose of determining the profit on the death of live stock of a particular species included in live stock that died or were destroyed and, for that purpose, a reference in that sub-section to live stock shall be read as a reference to live stock of that species.
“(23) In this section, a reference to the year of income to which an election under sub-section (1a) relates shall be read as a reference to the year of income in which the live stock to which the election relates died or were destroyed.”.
“(7) Subject to sub-section (8), depreciation of a unit of property is not an allowable deduction to a taxpayer in respect of any year of income if expenditure incurred by the taxpayer or another person in respect of the unit of property—
(a) has been allowed, or is allowable, as a deduction under section 75c from the assessable income of the taxpayer or that other person of any year of income; or
(b) would have been allowed, or would be allowable, as a deduction under that section from the assessable income of any year of income of the taxpayer or that other person but for sub-section (9) of that section.
“(8) Sub-section (7) does not operate to prevent depreciation being allowed to a taxpayer in respect of expenditure incurred in respect of a unit of property to the extent to which a deduction has not been allowed, and is not allowable, under section 75c (otherwise than by reason of the operation of sub-section (9) of that section) to any taxpayer in respect of that expenditure.”.
“57ag. (1) In this section, ‘plant’ means property that is plant for the purposes of section 54, but a motor vehicle (including a vehicle known as a four wheel drive vehicle) that is—
(a) a motor car, station wagon, panel van, utility truck or similar vehicle;
(b) a motor cycle or similar vehicle; or
(c) any other road vehicle designed to carry a load of less than 1 tonne or fewer than 9 passengers,
shall not be treated as plant or as an article for the purposes of this section.
“(2) This section applies to property, being plant or articles owned by a taxpayer, in respect of which depreciation is allowable under this Act and which—
(a) is property—
(i) which was acquired by the taxpayer under a contract entered into after 19 August 1980; or
(ii) which was constructed by the taxpayer and the construction of which by the taxpayer commenced after 19 August 1980; and
(b) is not property in relation to expenditure on which a deduction has been allowed, or is allowable, to the taxpayer in accordance with section 57ae, or in respect of which sub-section (2) of section 55, or sub-section (5) of section 73a, applies.
“(3) Notwithstanding anything contained in sub-section (1) of section 55, sub-section (1) of section 56, or section 56a or 57, but subject to sub-sections (1a), (1b), (1c), (2), (3) and (4) of section 56, the depreciation that is an allowable deduction under section 54 in respect of property to which this section applies shall be the amount that would be that amount of depreciation if the annual depreciation per centum fixed under sub-section (1) of section 55 in respect of that property had been increased by 20% of the percentage actually fixed.
“(4) Where the Commissioner is satisfied that—
(a) a contract or arrangement was entered into by a taxpayer on or before 19 August 1980 for the acquisition of a unit of property (in this sub-section referred to as the ‘original unit’);
(b) after that date—
(i) the taxpayer entered into a contract (whether with the same or another person) for the acquisition (whether with or without the acquisition of other property) of the original unit or of another unit of property (in this sub-section referred to as the ‘substituted unit’) identical with, or having a purpose similar to that of, the original unit and intended by the taxpayer to be in lieu of the original unit; or
(ii) the taxpayer commenced the construction of a unit of property (in this sub-section also referred to as the ‘substituted unit’) identical with, or having a purpose similar to that of, the original unit and intended by the taxpayer to be in lieu of the original unit; and
(c) the taxpayer entered into the contract for the acquisition of the original unit or substituted unit, or commenced the construction of the substituted unit, for the purpose, or for purposes that included the purpose, of obtaining a deduction or depreciation calculated in accordance with sub-section (3),
the Commissioner may refuse to allow a deduction for depreciation calculated in accordance with that sub-section—
(d) in a case to which sub-paragraph (i) of paragraph (b) applies—in relation to the original unit or the substituted unit; or
(e) in a case to which sub-paragraph (ii) of paragraph (b) applies—in relation to the substituted unit.
“(5) Where the Commissioner is satisfied that—
(a) a taxpayer commenced construction of a unit of property (in this sub-section referred to as the ‘original unit’) on or before 19 August 1980;
(b) after that date—
(i) the taxpayer commenced the construction of a unit of property (in this sub-section referred to as the ‘substituted unit’) identical with, or having a purpose similar to that of, the original unit and intended by the taxpayer to be in lieu of the original unit; or
(ii) the taxpayer entered into a contract for the acquisition (whether with or without the acquisition of other property) of the original unit or of another unit of property (in this sub-section also referred to as the ‘substituted unit’) identical with, or having a purpose similar to that of, the original unit and intended by the taxpayer to be in lieu of the original unit;
and
(c) the taxpayer commenced the construction of the substituted unit, or entered into the contract for the acquisition of the original unit or of the substituted unit, for the purpose, or for purposes that included the purpose, of obtaining a deduction for depreciation calculated in accordance with sub-section (3),
the Commissioner may refuse to allow a deduction for depreciation calculated in accordance with that sub-section—
(d) in a case to which sub-paragraph (i) of paragraph (b) applies—in relation to the substituted unit; or
(e) in a case to which sub-paragraph (ii) of paragraph (b) applies—in relation to the original unit or the substituted unit.
“(6) In this section, a reference to the acquisition by a taxpayer of property shall be read as including a reference to the construction of the property for the taxpayer by another person or other persons.”.
“75c. (1) In this section, unless the contrary intention appears— ‘eligible expenditure’ means—
(a) expenditure incurred by a taxpayer before 1 July 1984 on the construction by the taxpayer of a stockyard fence on land in Australia on which, at the time when the expenditure was incurred, the taxpayer carried on a business of primary production, where—
(i) at the time when the taxpayer first incurred expenditure in respect of that fence, there was in force, in relation to the land, a certificate of the kind to which paragraph (a) or (c) of sub-section (4) applies; and
(ii) construction of the fence commenced on or after the date of issue of that certificate and before 1 July 1984;
(b) expenditure incurred by a taxpayer before 1 July 1984 on the construction by the taxpayer of a subdivisional fence on land in Australia on which, at the time when the expenditure was incurred, the taxpayer carried on a business of primary production, where—
(i) at the time when the taxpayer first incurred expenditure in respect of that fence, there was in force, in relation to the land, a certificate of the kind to which paragraph (b) or (c) of sub-section (4) applies; and
(ii) construction of the fence commenced on or after the date of issue of that certificate and before 1 July 1984;
(c) expenditure incurred by a taxpayer on the acquisition of a stockyard fence for use on land in Australia on which, at the time when the expenditure was incurred, the taxpayer carried on a business of primary production, where—
(i) the expenditure was incurred before 1 July 1984 under a contract entered into before that date; and
(ii) at the time when the contract was entered into, there was in force, in relation to the land, a certificate of the kind to which paragraph (b) or (c) of sub-section (4) applies; and
(d) expenditure incurred by a taxpayer on the acquisition of a subdivisional fence for use on land in Australia on which, at the time when the expenditure was incurred, the taxpayer carried on a business of primary production, where—
(i) the expenditure was incurred before 1 July 1984 under a contract entered into before that date; and
(ii) at the time when the contract was entered into, there was in force, in relation to the land, a certificate of the kind to which paragraph (b) or (c) of sub-section (4) applies;
‘prescribed disease’ means bovine brucellosis or bovine tuberculosis;
‘Secretary’ means the Secretary to the Department of Primary Industry;
‘stockyard fence’ means a fence enclosing a stockyard and includes loading ramps, races, cradles, crushes and other similar facilities for handling live stock;
‘subdivisional fence’ means a fence that subdivides land but does not include a stockyard fence, a boundary fence, or a fence along a public road, public stock route or other public right of way.
“(2) A reference in this section to a stockyard fence or a subdivisional fence shall be read as including a reference to an extension, alteration or addition to a stockyard fence or subdivisional fence, as the case may be.
“(3) A reference in this section to the acquisition by a taxpayer of a stockyard fence or subdivisional fence shall be read as including a reference to the construction of a stockyard fence or subdivisional fence for the taxpayer by another person or other persons.
“(4) The Secretary may issue to a person carrying on a business of primary production on any land in Australia—
(a) a certificate stating that the Secretary is satisfied that, on the date specified in the certificate as the date of issue of the certificate, it is desirable, for the purpose of assisting in the control or eradication of a prescribed disease, that stockyard fences be constructed or used on such of the land as is specified in the certificate;
(b) a certificate stating that the Secretary is satisfied that, on the date specified in the certificate as the date of issue of the certificate, it is desirable, for the purpose of assisting in the control or eradication of a prescribed disease, that subdivisional fences be constructed or used on such of the land as is specified in the certificate; or
(c) a certificate stating that the Secretary is satisfied that, on the date specified in the certificate as the date of issue of the certificate, it is desirable, for the purpose of assisting in the control or eradication of a prescribed disease, that stockyard fences and subdivisional fences be constructed or used on such of the land as is specified in the certificate.
“(5) In forming an opinion for the purpose of sub-section (4) as to whether it is desirable, for the purpose of assisting in the control or eradication of a prescribed disease, that stockyard fences be constructed or used on any land, the Secretary shall have regard to such matters as he considers relevant, including whether stockyard fences or additional stockyard fences are necessary to facilitate testing for, or identifying, a prescribed disease or for loading live stock for transport for the purpose of controlling or eradicating a prescribed disease.
“(6) In forming an opinion for the purpose of sub-section (4) as to whether it is desirable, for the purpose of assisting in the control or eradication of a prescribed disease, that subdivisional fences be constructed or used on any land, the Secretary shall have regard to such matters as he considers relevant, including whether subdivisional fences or additional subdivisional fences are necessary for the formation of paddocks for holding or isolating live stock for the purpose of controlling or eradicating a prescribed disease.
“(7) Where, at any time, the Secretary is not satisfied, in relation to any land in respect of which a certificate has been issued under sub-section (4), as to the matter specified in paragraph (a), (b) or (c), as the case requires, of sub-section (4), the Secretary may, by notice in writing given to the person who, for the time being, carries on a business of primary production on that land, revoke the certificate and the revocation has effect from the date specified in the notice (not being a date earlier than the date on which the notice is given) as the date from which the notice has effect.
“(8) Subject to the succeeding provisions of this section, where, in a year of income, a taxpayer incurs eligible expenditure, the amount of that eligible expenditure is an allowable deduction from the assessable income of the taxpayer of the year of income.
“(9) A deduction is not allowable, and shall be deemed never to have been allowable, under this section to a taxpayer in respect of a year of income in relation to eligible expenditure incurred by the taxpayer, where—
(a) the taxpayer is recouped, or becomes entitled to be recouped, in respect of the expenditure by the Commonwealth, by a State, by a Territory, by an authority constituted by or under a law of the Commonwealth, of a State or of a Territory or by any other person; and
(b) the amount recouped, or to be recouped, is not, and will not be, included in the assessable income of the taxpayer of any year of income.
“(10) Where a taxpayer receives, or becomes entitled to receive, an amount that constitutes to an unspecified extent a recoupment of eligible expenditure to which this section would, apart from sub-section (9), apply, the Commissioner may, for the purposes of sub-section (9), determine the extent to which the amount constitutes a recoupment of that expenditure.
“(11) This section does not apply in relation to the calculation of the net income of a partnership, or a partnership loss, in accordance with section 90, but, where a partnership has incurred eligible expenditure to which this section would apply if the partnership were a taxpayer, then, for the purposes of the application of sub-section (8) in respect of a partner in the partnership, that partner shall be deemed to have incurred—
(a) so much of the amount of that eligible expenditure as the partners have agreed is to be borne by that partner; or
(b) if the partners have not agreed as to the part of that amount that is to be borne by that partner—so much of that amount as bears to that amount the same proportion as the individual interest of the partner in the net income of the partnership of the year of income in which the relevant expenditure was incurred bears to that net income or, as the case requires, as the individual interest of the partner in the partnership loss for that year of income bears to that partnership loss.
“(12) Where—
(a) a taxpayer has incurred eligible expenditure on the acquisition of a fence (in this sub-section referred to as the ‘relevant fence’) under a contract (in this sub-section referred to as the ‘relevant contract’);
(b) the Commissioner is satisfied that—
(i) before the date of issue of the certificate by virtue of which the expenditure is eligible expenditure, the taxpayer had entered into a contract or arrangement for the acquisition of the relevant fence or had commenced construction of the relevant fence; or
(ii) before the date of issue of the certificate by virtue of which the expenditure is eligible expenditure, the taxpayer had entered into a contract or arrangement for the acquisition of another fence or had commenced construction of another fence and the relevant fence is identical with, or has a purpose similar to that of, that other fence and was intended by the taxpayer to be in lieu of that other fence; and
(c) the Commissioner is satisfied that the taxpayer entered into the relevant contract for the purpose, or for purposes that included the purpose, of obtaining a deduction under this section,
the Commissioner may refuse to allow a deduction under this section in respect of the eligible expenditure.
“(13) Where—
(a) a taxpayer has incurred eligible expenditure on the construction of a fence (in this sub-section referred to as the ‘relevant fence’);
(b) the Commissioner is satisfied that—
(i) before the date of issue of the certificate by virtue of which the expenditure is eligible expenditure, the taxpayer had entered into a contract or arrangement for the acquisition of another fence or had commenced construction of another fence; and
(ii) the relevant fence is identical with, or has a purpose similar to that of, that other fence and was intended by the taxpayer to be in lieu of the other fence; and
(c) the Commissioner is satisfied that the taxpayer commenced the construction of the relevant fence for the purpose or for purposes that included the purpose, of obtaining a deduction under this section,
the Commissioner may refuse to allow a deduction under this section in respect of the eligible expenditure.
“(14) Where—
(a) in a year of income, a taxpayer has incurred eligible expenditure (in this sub-section referred to as the ‘relevant expenditure’) on the acquisition or construction of a stockyard fence or a subdivisional fence;
(b) that relevant expenditure is attributable, in whole or in part, to a transaction to which the taxpayer was a party;
(c) the Commissioner is satisfied that, having regard to any connection between any 2 or more of the parties to the transaction and to any other relevant circumstances, those parties were not dealing with each other at arm’s length in relation to the transaction; and
(d) the Commissioner is satisfied that the amount of the relevant expenditure is greater than the amount (in this sub-section referred to as the ‘arm’s length amount’) that would have been the amount of expenditure incurred by the taxpayer in that year of income in respect of the construction or acquisition of the relevant fence if the parties to the transaction had dealt with each other at arm’s length in relation to the transaction,
the arm’s length amount shall, for the purposes of this section, be deemed to be the amount of the expenditure incurred by the taxpayer in that year of income in respect of the construction or acquisition of that fence.”.
(a) by omitting sub-paragraph (xliii) of paragraph (a) of sub-section (1);
(b) by inserting after sub-paragraph (liii) of paragraph (a) of sub-section (1) the following sub-paragraphs:
“; (liv) a college of advanced education within the meaning of the
Tertiary Education Commission Act 1977;(lv) an institution that is certified by the Minister for Education, by instrument signed by him, to be a technical and further education institution within the meaning of the
Tertiary Education Commission Act 1977, where the gift is for certified purposes of the institution or for the provision of certified facilities for the institution;(lvi) an institution that is a prescribed Commonwealth institution within the meaning of the
Tertiary Education Commission Act 1977;(lvii) a residential educational institution that is affiliated with an institution to which sub-paragraph (liv) or (lvi) applies;
(lviii) the Marcus Oldham Farm Management College, where the gift is for certified purposes of the college or for the provision of certified facilities for the college,”; and
(c) by omitting sub-section (5) and substituting the following sub-section:
“(5) For the purposes of sub-paragraphs (lv) and (lviii) of paragraph (a) of sub-section (1)—
(a) ‘certified purposes’, in relation to a certified technical and further education institution or the Marcus Oldham Farm Management College, means purposes of the institution or college that have been certified by the Minister for Education, by instrument signed by him, to relate exclusively to tertiary education; and
(b) ‘certified facilities’, in relation to a certified technical and further education institution or the Marcus Oldham Farm Management College, means facilities (including residential accommodation) in respect of which the Minister for Education has certified, by instrument signed by him, that he is satisfied are, or are to be, used wholly or principally for purposes of the institution or college that are certified purposes of the institution or college within the meaning of paragraph (a) of this sub-section.”.
“82aas. (1) In this Subdivision, unless the contrary intention appears—
‘dependant’, in relation to a taxpayer, includes the spouse and any child of the taxpayer;
‘qualifying superannuation fund’ means a superannuation fund—
(a) the income of which of the year of income is exempt from tax by virtue of paragraph (ja) of section 23 or would, but for the provisions of section 121c, be exempt from tax by virtue of that paragraph; or
(b) which is a fund to which section 79 applies in relation to the year of income.
“(2) Subject to sub-section (3), a person (in this sub-section referred to as the ‘relevant person’) is an eligible person in relation to a year of income for the purposes of this Subdivision unless—
(a) during the whole or a part of the year of income circumstances existed by reason of which it was reasonable to expect that superannuation benefits would be provided for the relevant person upon retirement or for dependants of the relevant person in the event of the death of the relevant person (whether or not any condition other than the retirement or death of the relevant person would be required to be satisfied in order that those benefits be provided); and
(b) to the extent to which those benefits would be attributable to the year of income—
(i) the benefits would be wholly or partly attributable to contributions made to a superannuation fund in relation to the relevant person by a person other than the relevant person; or
(ii) the benefits would, in whole or in part, be paid out of moneys that would not represent—
(a) contributions made by the relevant person to a superannuation fund;
(b) contributions made by the relevant person under a scheme for the payment of benefits upon retirement or death, being a scheme constituted by or under a law of the Commonwealth or of a State or Territory; or
(c) income or accretions arising from contributions referred to in clause (a) or (b).
“(3) Where, apart from this sub-section, a person would not be an eligible person in relation to a year of income for the purposes of this Subdivision by reason of the operation of sub-section (2) in relation to a part only of a year of income and the Commissioner, having regard to—
(a) the period or periods during the year of income or during any preceding year of income during which circumstances of the kind specified in that sub-section existed in relation to the person; and
(b) such other matters as the Commissioner thinks relevant,
is of the opinion that it is reasonable that the person should be treated as an eligible person in relation to the year of income for the purposes of this Subdivision, the person shall be deemed to be an eligble person in relation to the year of income for the purposes of this Subdivision.
“82aat. (1) Subject to sub-section (2), there shall be allowed as a deduction from the assessable income of an eligible person of a year of income the amount of any contribution, or the sum of the amounts of any contributions, made by the eligible person during the year of income and after 19 August 1980 to a qualifying superannuation fund, being contributions made to obtain superannuation benefits for the eligible person or, in the event of the death of the eligible person, for the dependants of the eligible person.
“(2) The deduction allowable to a taxpayer under this section from the assessable income of a year of income shall not exceed $1,200.”.
“(8a) Tothe extent that contributions made to a superannuation fund are allowable as deductions under section 82aat,those contributions shall not be taken into account for the purposes of sub-section (1) of this section.”.
(a) by inserting in sub-section (10) “section 36aaa,” after “section 31c,”;and
(b) by inserting in sub-section (10) “section 75c,” after “section 75b,”.
(a) by inserting “sub-section (2) of section 100,” before “or Division 18”; and
(b) by adding at the end thereof the following sub-section:
“(2) Where—
(a) the amount of income tax payable by a person in respect of income of the year next preceding the year of income is greater than the amount of income tax that would have been payable by that person in respect of income of that next preceding year if Division 6aa of Part III had not been enacted; and
(b) the amount of income tax that the person will be liable to pay in respect of income of the year of income is likely to be the same amount as the amount of the income tax that the person would be liable to pay in respect of the income of the year of income if that Division had not been enacted,
the Commissioner may reduce the provisional tax by such amount (if any) as he thinks reasonable in the circumstances.”.
(a) if paragraph 221yc(1)(a) of the Assessment Act applies to the taxpayer—the amount of provisional tax payable by the taxpayer in respect of income of the relevant year of income by virtue of that paragraph is the amount ascertained by deducting from the amount of income tax that would have been assessed in respect of the amount that would have been the taxable income of the taxpayer of the year of income next preceding the relevant year of income if—
(i) the taxable income of the taxpayer of the year of income next preceding the relevant year of income had, except for the purpose of determining the notional income for the purpose of section 59ab, 86 or 158d of the Assessment Act, been increased by 7.5%;
(ii) where the eligible taxable income for the purposes of Division 6aa of Part III of the Assessment Act of the taxpayer of the year of income next preceding the relevant year of income exceeded $1,040—that eligible taxable income had been increased by 7.5%;
(iii) the deemed taxable income from primary production for the purposes of section 156 of the Assessment Act of the taxpayer of the year of income next preceding the relevant year of income had been increased by 7.5%;
(iv) each reference in section 6ha of the
Income Tax (Rates) Act 1976 to $3,625 were a reference to $3,432;(v) the reference in sub-section 6j (4) of the
Income Tax (Rates) Act 1976 to $1,228 were a reference to $1,155;(vi) each reference in Schedules 13, 14 and 16 to the
Income Tax (Rates) Act 1976 to $3,893 were a reference to $4,041;(vii) each reference in Schedules 13, 14 and 16 to the
Income Tax (Rates) Act 1976 to $16,608 were a reference to $17,239;(viii) each reference in Schedules 13, 16a and 16b to the
Income Tax (Rates) Act 1976 to $33,216 were a reference to $34,478;(ix) each reference in Schedules 13 and 14 to the
Income Tax (Rates) Act 1976 to 33.07 were a reference to 32;(x) each reference in Schedules 16a and 16b to the
Income Tax (Rates) Act 1976 to 47.07% were a reference to 46%;(xi) each reference in Schedules 16a and 16b to the
Income Tax (Rates) Act 1976 to 61.07% were a reference to 60%;(xii) the reference in sub-section 6h (7) of the
Income Tax (Rates) Act 1976 and in sub-section 7 (3) of theIncome Tax (Companies and Superannuation Funds) Act 1979 to 61.07% were a reference to 60%; and(xiii) the taxpayer were not entitled to any rebate or credit in his assessment,
the sum of—
(xiv) the rebates (if any) to which the taxpayer would have been entitled under sections 23ab, 79a and 79b of the Assessment Act in his assessment in respect of income of the year of income next preceding the relevant year of income if the rebates (if any) to which the taxpayer was entitled in his assessment in respect of income of that last-mentioned year of income under sections 159j, 159k and 159l of the Assessment Act or would have been entitled in respect of that last-mentioned year of income under section 159j of the Assessment Act but for sub-section 159j(1a) of that Act had been increased by 34%;
(xv) the rebate (if any) to which the taxpayer would have been entitled under section 156 of the Assessment Act in his assessment in respect of income of the year of income next preceding the relevant year of income if the conditions set out in sub-paragraphs (i) to (xi) (inclusive) of this paragraph were applicable for the purposes of making that assessment other than for the purposes of determining the average income of the taxpayer for the purposes of the application of Division 16 of Part III of the Assessment Act;
(xvi) each of the rebates (if any) to which the taxpayer was entitled under sections 159j, 159k and 159l of the Assessment Act in his assessment in respect of income of the year of income next preceding the relevant year of income, as increased by 34%; and
(xvii) the rebates and credits (other than a rebate under section 23ab, 79a, 79b, 156, 159j, 159k or 159l of the Assessment Act) to which the taxpayer was entitled in his assessment in respect of income of the year of income next preceding the relevant year of income; and
(b) if paragraph 221yc(1)(b) of the Assessment Act applies to the taxpayer—the amount of provisional tax payable by him in respect of income of the relevant year of income by virtue of that paragraph is—
(i) in a case where paragraph 221yc(1)(a) of the Assessment Act would apply to the taxpayer in relation to the relevant year of income but for sub-section 221ya(5) of that Act—the amount that would be payable by the taxpayer under paragraph 221yc(1)(a) of the Assessment Act (as affected by paragraph (a) of this section) if that Act had not contained sub-section 221ya(5) and Division 16c of Part III of the Assessment Act were not applicable in relation to the year of income next preceding the relevant year of income; and
(ii) in any other case—the amount that would be payable by the taxpayer under paragraph (a) of this section if the provisions of that paragraph applied to the taxpayer in relation to his income of the relevant year of income and—
(a) the taxable income of the taxpayer of the year of income next preceding the relevant year of income had been equal to the amount that the Commissioner estimates would have been his provisional income if Division 16c of Part III of the Assessment Act were not applicable in relation to the year of income next preceding the relevant year of income;
(b) the deemed taxable income from primary production for the purposes of Division 16 of Part III of the Assessment Act of the taxpayer of that next preceding year were such amount (if any) as the Commissioner determines; and
(c) the amount of the eligible taxable income for the purposes of Division 6aa of Part III of the Assessment Act of the taxpayer of that next preceding year were such amount (if any) as the Commissioner determines.
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