Taxation Laws Amendment Act 1989 (Cth)

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Taxation Laws Amendment Act 1989

Act No. 11 of 1989 as amended

This compilation was prepared on 13 September 2010

taking into account amendments up to Act No. 75 of 2010

The text of any of those amendments not in force

on that date is appended in the Notes section

The operation of amendments that have been incorporated may be

affected by application provisions that are set out in the Notes section

Prepared by the Office of Legislative Drafting and Publishing,

Attorney-General’s Department, Canberra

    

TABLE OF PROVISIONS

 

PART I - PRELIMINARY

Section

 

1.

 Short title [see Note 1]

 

2.

 Commencement [see Note 1]

PART II - AMENDMENT OF THE FRINGE BENEFITS TAX ASSESSMENT ACT 1936

 

3.

 Principal Act

 

4.

 Reduction of taxable value - ''otherwise deductible'' rule

 

5.

 Reduction of taxable value - ''otherwise deductible'' rule

 

6.

 Insertion of new section:

 

58LA.

    Exempt benefits - compassionate travel

 

7.

 Reduction of taxable value - remote area holiday transport fringe

  benefits subject to ceiling

 

8.

 Reduction of taxable value - remote area holiday transport fringe

 benefits not subject to ceiling

 

9.

 Reduction of taxable value - overseas employment holiday transport

 

10.

 Reduction of taxable value of certain expense payment fringe

  benefits in respect of relocation transport

 

11.

 Reduction of taxable value of certain expense payment fringe

       benefits in respect of employment interviews or selection tests

 

12.

 Reduction of taxable value of certain expense payment fringe benefits

  associated with work-related medical examinations, work-related medical

  screenings, work-related preventative health care, work-related

  counselling or migrant language training

 

13.

 Heading to Part X

 

14.

 Insertion of new section:

 

123A.

    Car records to be completed before declaration date

 

15.

 Interpretation

 

16.

 Insertion of new section:

 

136A.

    Reimbursement etc. of tax not to be regarded as consideration

  in respect of benefit etc.

 

17.

 Remote area holiday transport

 

18.

 Amendments relating to car records

 

19.

 Application of amendments

 

20.

 Amendment of assessments

PART III - AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

 

21.

 Principal Act

 

22.

 Insertion of new section:

 

23M.

      Reimbursement etc. in respect of fringe benefits tax not

  assessable income

 

23.

 Deductions not allowable for entertainment expenses

 

24.

 Interpretation

 

25.

 Repeal of sections and substitution of new sections:

 

82KTA.

    Holding of car or motor vehicle

 

82KTB.

    Holding period of car or motor vehicle

 

26.

 Deemed specification of matters in odometer records

 

27.

 Log book year of income

 

28.

 Deductions not allowable for car expenses incurred in a log book year

  of income unless log book records and odometer records etc. are

  maintained

 

29.

 Other expenses

 

30.

 Retention, and production, of documents

 

31.

 Relief from certain substantiation requirements where taxpayer had a

 reasonable expectation that substantiation would not be required

 

32.

 Other interpretative provisions

 

33.

 Composite assets

 

34.

 Indexation of indexed cost base limit

 

35.

 Disposal of taxable Australian assets

 

36.

 Acquisition by lessee of reversionary interest of lessor

 

37.

 Insertion of new Division:

Division 5A - Crown Leases

 

160ZWA.

  Roll-over or conversion of Crown lease

 

38.

 Insertion of new Division:

Division 10A - Rights to Acquire Units in a Unit Trust

 

160ZYQA.

 Application

 

160ZYQB.

 Exercise of rights not to constitute disposal

 

160ZYQC.

 Time of acquisition of rights

 

160ZYQD.

 Unit holder not to be deemed to have paid or given

 consideration for rights

 

160ZYQE.

 Exercise of rights

 

160ZYQF.

 Application of Division to holders of convertible

  notes

  

39.

 Insertion of new Division:

Division 11A - Unit Trust-issued Options to Unitholders to Acquire

Unissued Units

 

160ZYXA.

 Application

 

160ZYXB.

 Exercise of option not to constitute disposal

 

160ZYXC.

 Time of acquisition of option

 

160ZYXD.

 Unitholder not to be deemed to have paid or given

  consideration for option

 

160ZYXE.

 Exercise of option

 

160ZYXF.

 Application of Division to holders of convertible notes

 

40.

 Heading to Division 12 of Part IIIA

 

41.

 Insertion of new Division:

Division 12A - Convertible Notes - Unit Trusts

 

160ZZBA.

 Definition of convertible note

 

160ZZBB.

 Conversion of note not to constitute disposal

 

160ZZBC.

 Time of acquisition of units

 

160ZZBD.

 Consideration in respect of acquisition

 

42.

 Options

 

43.

 Roll-over of prospecting rights and mining rights

 

44.

 Involuntary disposal

 

45.

 Asset received as a result of involuntary disposal

 

46.

 Insertion of new section:

 

160ZZMA.

 Transfer of asset from company or trust to spouse upon

  breakdown of marriage

 

47.

 Transfer of asset to wholly-owned company

 

48.

 Transfer of asset between companies in the same group

 

49.

 Insertion of new sections:

 160ZZPAA. Exchange of units in the same unit trust

 160ZZPAB. Options and rights to acquire unissued shares affected by

  share splits or share consolidations

 160ZZPAC. Options and rights to acquire unissued units affected by unit

   splits or unit consolidations

 

50.

 Insertion of new sections:

 

160ZZPC.

 Company schemes of arrangement - exchange of shares in

 original company for shares in interposed company

 

160ZZPD.

 Company schemes of arrangement - redemption or cancellation

  of shares in original company in exchange for shares in

  interposed company

 

160ZZPE.

 Renewal or extension of statutory licence

 

160ZZPF.

 In specie distribution of shares by trustee of public trading

  trust

 

51.

 Exemption of principal residence

 

52.

 Application of amendments

SCHEDULE

AMENDMENTS OF THE FRINGE BENEFITS TAX ASSESSMENT ACT 1986 RELATING TO CAR

RECORDS

TAXATION LAWS AMENDMENT ACT 1989No. 11, 1989 - LONG TITLE

 

 An Act to amend the law relating to taxation

 

PART I – PRELIMINARY

 

TAXATION LAWS AMENDMENT ACT 1989No. 11, 1989

- SECT 1

Short title [see Note 1]

 

 1. This Act may be cited as the Taxation Laws Amendment Act 1989.

 

TAXATION LAWS AMENDMENT ACT 1989No. 11, 1989

- SECT 2

Commencement [see Note 1]

 

 2. This Act commences on the day on which it receives the Royal Assent.

 

PART II – AMENDMENT OF THE FRINGE BENEFITS TAX ASSESSMENT ACT 1986

 

TAXATION LAWS AMENDMENT ACT 1989No. 11, 1989

- SECT 3

Principal Act

 

 3. In this Part, "Principal Act" means the Fringe Benefits Tax Assessment

Act 1986*1*.

*1* No. 39, 1986, as amended. For previous amendments, see Nos. 48 and 112,

1986; Nos. 23 and 145, 1987; No. 139, 1987 (as amended by Nos. 11 and 78,

1988); and Nos. 6, 7, 95, 97 and 153, 1988.

 

TAXATION LAWS AMENDMENT ACT 1989No. 11, 1989

- SECT 4

Reduction of taxable value-''otherwise deductible'' rule

 

 4. Section 19 of the Principal Act is amended:

 

(a)

 by inserting in subparagraph (1) (b) (i) ", not being a foreign source

deduction," before "would, or";

 

(b)

 by inserting in sub-subparagraph (1) (ba) (ii) (A) "other than a

foreign source deduction" after "once-only deduction".

 

TAXATION LAWS AMENDMENT ACT 1989No. 11, 1989

- SECT 5

Reduction of taxable value-''otherwise deductible'' rule

 

 5. Section 24 of the Principal Act is amended:

 

(a)

 by inserting in subparagraph (1) (b) (iii) ", not being a foreign

source deduction," before "would, or";

 

(b)

 by inserting in sub-subparagraph (1) (ba) (ii) (A) "other than a

foreign source deduction" after "once-only deduction";

 

(c)

 by omitting from paragraph (1) (c) "expense benefit" (wherever

occurring) and substituting "expense payment benefit";

 

(d)

 by inserting in paragraph (1) (d) "(other than an international aircrew

expense payment benefit)" after "extended travel expense payment benefit".

 

TAXATION LAWS AMENDMENT ACT 1989No. 11, 1989

- SECT 6

 

 6. After section 58L of the Principal Act the following section is inserted:

Exempt benefits-compassionate travel

 "58LA. Where:

 

(a)

  any of the following benefits is provided in, or in respect of, a year

of tax in respect of the employment of an employee of an employer, being

benefits in relation to the transport of a person (in this section called the

'traveller') who is the employee or a close relative of the employee:

 

(i)

  a car benefit relating to a particular car where the application

or

availability of the car is in respect of the provision of the transport;

 

(ii)

  an expense payment benefit where the recipients expenditure is in

respect of the provision of:

 (A) the transport; or

 (B) meals or accommodation for the traveller in connection with the

transport;

 

(iii)

  a property benefit where the recipients property consists of

meals

for the traveller in connection with the transport;

 

(iv)

  a residual benefit where the recipients benefit consists of the

provision of:

 (A) the transport; or

 (B) accommodation for the traveller in connection with the transport;

 

(b)

  the sole reason that the transport is required is:

 

(i)

  if the traveller is the employee:

 (A) to enable the traveller to attend the funeral of a close relative

of the traveller; or

 (B) to enable the traveller to visit a close relative of the traveller

in connection with a serious illness of the close relative or of the

traveller; or

 

(ii)

  if the traveller is a close relative of the employee:

 (A) to enable the traveller to attend the funeral of the employee;

 (B) to enable the traveller to visit the employee in connection with a

serious illness of the employee or of the traveller;

 (C) to enable the traveller to attend the funeral of another close

relative of the employee; or

 (D) to enable the traveller to visit another close relative of the

employee in connection with a serious illness of the other close relative or

of the traveller;

 

(c)

  the travel to which the transport relates commences during a period in

respect of which any of the following conditions is satisfied (or, in a case

to which sub-subparagraph (b) (ii) (A) applies, would have been satisfied but

for the employee's death):

 

(i)

  during that period, the employee is undertaking travel in the course

of performing the duties of that employment;

 

(ii)

  in a case to which subparagraph (i) does not apply-the employee is

required, during that period, to live away from his or her usual place of

residence in order to perform the duties of that employment;

 

(iii)

  in a case to which neither subparagraph (i) nor (ii) applies-during

that period, the usual place of residence of the employee is at, or the

employee is performing duties of that employment at, a place that:

 (A) is in a State or internal Territory; and

 (B) is not at a location in, or adjacent to, an eligible urban area;

 

(d)

 in a case to which sub-subparagraph (b) (ii) (C) or (D) applies-the

travel to which the transport relates commences during a period during which

the traveller ordinarily resides with the employee; and

 

(e)

 if subparagraph (a) (ii) applies and the recipients expenditure is

incurred after 25 May 1988-documentary evidence of the recipients expenditure

is obtained by the recipient and that documentary evidence, or a copy, is

given to the employer before the declaration date;

the benefit is an exempt benefit in relation to the year of tax.".

 

TAXATION LAWS AMENDMENT ACT 1989No. 11, 1989

- SECT 7

Reduction of taxable value-remote area holiday transport fringe benefits

subject to ceiling

 

 7. Section 60A of the Principal Act is amended:

 

(a)

 by inserting in paragraph (4) (b) "following" before "rates";

 

(b)

 by omitting subparagraph (4) (b) (i) and substituting the following

subparagraph:

 

"(i)

  the basic car rate;";

 

(c)

 by omitting from subparagraph (4) (b) (ii) "prescribed for the purposes

of this subparagraph" and substituting "the supplementary car rate";

 

(d)

 by adding at the end the following subsection:

 "(5) Where:

 

(a)

  a remote area holiday transport fringe benefit in relation to an

employee consists of the provision of an allowance to the spouse or a child of

the employee; and

 

(b)

  the whole or a part of the allowance has been expended by the

recipient in obtaining the transport, meals or accommodation in respect of

which the allowance was paid;

 this section applies in relation to the fringe benefit as follows:

 

(c)

  the fringe benefit shall be treated as if it were an expense payment

fringe benefit;

 

(d)

  the amount expended as mentioned in paragraph (b) shall be treated as

if it were the recipients expenditure;

 

(e)

  so much of the allowance as does not exceed the recipients

expenditure shall be treated as if it were a reimbursement of the recipients

expenditure.".

 

TAXATION LAWS AMENDMENT ACT 1989No. 11, 1989

- SECT 8

Reduction of taxable value-remote area holiday transport fringe benefits not

subject to ceiling

 

 8. Section 61 of the Principal Act is amended:

 

(a)

 by inserting in paragraph (1) (f) "following" before "rates";

 

(b)

 by omitting subparagraph (1) (f) (i) and substituting the following

subparagraph:

 

"(i)

  the basic car rate;";

 

(c)

 by omitting from subparagraph (1) (f) (ii) "prescribed for the purposes

of this subparagraph" and substituting "the supplementary car rate";

 

(d)

 by adding at the end the following subsection:

 "(3) Where:

 

(a)

  a remote area holiday transport fringe benefit in relation to an

employee consists of the provision of an allowance to the spouse or a child of

the employee; and

 

(b)

  the whole or a part of the allowance has been expended by the

recipient in obtaining the transport, meals or accommodation in respect of

which the allowance was paid;

 this section applies in relation to the fringe benefit as follows:

 

(c)

  the fringe benefit shall be treated as if it were an expense payment

fringe benefit;

 

(d)

  the amount expended as mentioned in paragraph (b) shall be treated as

if it were the recipients expenditure;

 

(e)

  so much of the allowance as does not exceed the recipients

expenditure shall be treated as if it were a reimbursement of the recipients

expenditure.".

 

TAXATION LAWS AMENDMENT ACT 1989No. 11, 1989

- SECT 9

Reduction of taxable value-overseas employment holiday transport

 

 9. Section 61A of the Principal Act is amended:

 

(a)

 by inserting in paragraph (5) (b) "following" before "rates";

 

(b)

 by omitting subparagraph (5) (b) (i) and substituting the following

subparagraph:

 

"(i)

  the basic car rate;";

 

(c)

 by omitting from subparagraph (5) (b) (ii) "prescribed for the purposes

of this subparagraph" and substituting "the supplementary car rate".

 

TAXATION LAWS AMENDMENT ACT 1989No. 11, 1989

- SECT 10

Reduction of taxable value of certain expense payment fringe benefits in

respect of relocation transport

 

 10. Section 61B of the Principal Act is amended:

 

(a)

 by inserting "following" before "rates";

 

(b)

 by omitting paragraph (d) and substituting the following paragraph:

 

"(d)

  the basic car rate;";

 

(c)

 by omitting from paragraph (e) "prescribed for the purposes of this

paragraph" and substituting "the supplementary car rate".

 

TAXATION LAWS AMENDMENT ACT 1989No. 11, 1989

- SECT 11

Reduction of taxable value of certain expense payment fringe benefits in

respect of employment interviews or selection tests

 

 11. Section 61E of the Principal Act is amended by omitting "the rate

prescribed for the purposes of paragraph 82KX (1) (a) of the Income Tax

Assessment Act 1936" and substituting "the basic car rate".

 

TAXATION LAWS AMENDMENT ACT 1989No. 11, 1989

- SECT 12

Reduction of taxable value of certain expense payment fringe benefits

associated with work-related medical examinations, work-related medical screenings,

work-related preventative health care, work-related counselling or migrant

language training

 

 12. Section 61F of the Principal Act is amended:

 

(a)

 by inserting "following" before "rates";

 

(b)

 by omitting paragraph (d) and substituting the following paragraph:

 

"(d)

  the basic car rate;";

 

(c)

 by omitting from paragraph (e) "prescribed for the purposes of this

paragraph" and substituting "the supplementary car rate".

 

TAXATION LAWS AMENDMENT ACT 1989No. 11, 1989

- SECT 13

Heading to Part X

 

 13. The heading to Part X of the Principal Act is amended by omitting

"RETENTION OF".

 

TAXATION LAWS AMENDMENT ACT 1989No. 11, 1989

- SECT 14

 

 14. After section 123 of the Principal Act the following section is

inserted:

Car records to be completed before declaration date

 "123A. (1) For the purposes of this Act (other than section 115A), a matter

shall not be taken to have been specified or nominated in car records of an

employer for a year of tax unless the matter was included in those records

before the declaration date.

 "(2) Subsection (1) is subject to any other provision of this Act that

requires a particular matter to be treated as if it had been specified or

nominated in car records of an employer.".

 

TAXATION LAWS AMENDMENT ACT 1989No. 11, 1989

- SECT 15

Interpretation

 

 15. Section 136 of the Principal Act is amended:

 

(a)

 by inserting after paragraph (a) of the definition of "statutory

evidentiary document" in subsection (1) the following paragraph:

 

"(aa)

  car records that:

 

(i)

  are maintained by the employer in relation to the current year

of tax; or

 

(ii)

  were maintained by the employer in relation to an earlier year

of tax but are relevant to the employer's liability under this Act in respect

of the current year of tax;";

 

(b)

 by omitting from subsection (1) the definition of "eligible incidental

travel expense payment benefit" and substituting the following definition:

 " 'eligible incidental travel expense payment benefit' means an expense

payment fringe benefit where:

 

(a)

  either:

 

(i)

  the recipients expenditure:

 (A) is in respect of travel by the recipient away from the

recipient's usual place of residence undertaken in the course of performing

the duties of his or her employment, being expenditure in respect of

accommodation, the purchase of food or drink or otherwise incidental to the

travel; and

 (B) relates solely to travel by the recipient in Australia; or

 

(ii)

  the recipients expenditure:

 (A) is in respect of travel by the recipient away from the

recipient's usual place of residence undertaken in the course of performing

the duties of his or her employment, being expenditure in respect of the

purchase of food or drink or otherwise incidental to the travel (except in

respect of accommodation); and

 (B) relates solely or principally to travel by the recipient

outside Australia; and

 

(b)

  the payment or reimbursement, as the case may be, that constitutes

the fringe benefit is in the nature of compensation to the recipient for the

expenses that the recipient might reasonably be expected to have incurred in

respect of the matters specified in sub-subparagraph (a) (i) (A) or (a) (ii)

 (A), as the case requires;";

 

(c)

 by inserting in subsection (1) the following definitions:

 " 'basic car rate', in relation to a year of tax ending on

31 March in a year, means the rate prescribed for the purposes of paragraph

82KX (1) (a) of the Income Tax Assessment Act 1936 in relation to the year of

income ending on 30 June in that year;

 'car records', in relation to an employer in relation to a year of tax,

means records that are maintained by the employer in relation to the year of

tax for the purposes of the provisions of this Act that refer to car records

and that:

 

(a)

  in the case of the year of tax commencing on 1 April 1988 or an

earlier year of tax-are in writing in the English language or are in a form

that enables them to be readily accessible and convertible into writing in the

English language; or

 

(b)

  in the case of a later year of tax-are maintained in a form

approved by the Commissioner;

 'close relative', in relation to a person, means:

 

(a)

  the spouse of the person;

 

(b)

  a child or parent of the person; or

 

(c)

  a parent of the person's spouse;

 'foreign source deduction' means:

 

(a)

  a deduction that relates exclusively to income derived from a

foreign source or foreign sources within the meaning of section 160AFD of the

Income Tax Assessment Act 1936; or

 

(b)

  so much of a deduction as, in the opinion of the Commissioner, may

appropriately be related to income derived from a foreign source or foreign

sources within the meaning of that section;

 'international aircrew expense payment benefit' means an expense payment

fringe benefit where the recipients expenditure:

 

(a)

  is in respect of travel by the recipient in the course of

performing the duties of the recipient's employment as the pilot, flight

engineer, flight attendant, or other member of the crew, of an aircraft, being

expenditure in respect of accommodation, the purchase of food or drink or

otherwise incidental to the travel; and

 

(b)

  relates to travel by the recipient outside Australia;

 'supplementary car rate', in relation to a year of tax, means the rate

prescribed for the purposes of this definition in relation to the year of

tax;".

 

TAXATION LAWS AMENDMENT ACT 1989No. 11, 1989

- SECT 16

 

 16. After section 136 of the Principal Act the following section is

inserted:

Reimbursement etc. of tax not to be regarded as consideration in respect of

benefit etc.

 "136A. For the purposes of this Act, an amount paid (including an amount

deemed by section 145 to have been paid) in respect of fringe benefits tax

shall not be regarded as also being consideration for or in respect of:

 

(a)

  the provision of a benefit; or

 

(b)

  any other matter.".

 

TAXATION LAWS AMENDMENT ACT 1989No. 11, 1989

- SECT 17

Remote area holiday transport

 

 17. Section 143 of the Principal Act is amended by omitting paragraph (1)

 (d) and substituting the following paragraph:

 

"(d)

  in the case of a residual fringe benefit-the recipients benefit

consists of:

 

(i)

  the provision of transport or accommodation in connection with

transport; or

 

(ii)

  the receipt of an allowance in respect of the cost of obtaining

transport, or of obtaining meals or accommodation in connection with

transport;".

 

TAXATION LAWS AMENDMENT ACT 1989No. 11, 1989

- SECT 18

Amendments relating to car records

 

 18. The Principal Act is amended as set out in the Schedule.

 

TAXATION LAWS AMENDMENT ACT 1989No. 11, 1989

- SECT 19

Application of amendments

 

 19. (1) In this section:

 "amended Act" means the Principal Act as amended by this Part.

 (2) Subject to this section, the amendments made by this Part apply to:

 

(a)

  assessments of the fringe benefits taxable amount of an employer of the

transitional year of tax and of each subsequent year of tax; and

 

(b)

  instalments of tax in respect of the transitional year of tax.

 (3) The amendments made by section 4 and paragraphs 5 (a) and (b) apply

where the loan concerned was made, or the recipients expenditure incurred, as

the case requires, after 25 May 1988.

 (4) In applying section 60A or 61 of the amended Act to a fringe benefit to

which subsection 60A (5) or 61 (3) of the amended Act applies, the condition

specified in paragraph 60A (2) (b) or 61 (1) (d), as the case requires, of the

amended Act shall be taken to be satisfied if the fringe benefit was provided

on or before 25 May 1988.

 (5) The amendment made by section 16 applies to amounts paid after 25 May

1988.

 (6) Subject to this section, section 115A of the Principal Act shall be

taken never to have applied in relation to percentages specified, or

purporting to be specified, in returns.

 (7) Section 115A of the amended Act applies to the specification, or

purported specification, of a percentage in car records of an employer only

if:

 

(a)

  the specification, or purported specification, occurs after the

commencement of this section (whether or not the specification is deemed by

subsection (8) of this section to have occurred before the commencement of

this section);

 

(b)

  the percentage is deemed by subsection (9) of this section to have been

specified in the car records; or

 

(c)

  because of the application of section 162D of the amended Act in

relation to a document lodged after the commencement of this section, the

percentage is deemed to have been specified in the car records.

 (8) Where, not later than one month after the commencement of this section,

an employer specifies or nominates a particular in car records of the employer

for a year of tax ending before the commencement of this section, that

particular shall be deemed to have been specified or nominated in those car

records before the declaration date in relation to that year of tax.

 (9) Where, in a return for a year of tax lodged before the commencement of

this section, an employer specified, or purported to specify, (including a

specification that is treated as having occurred because of section 162D of

the Principal Act) a percentage as mentioned in paragraph 115A (1) (a) or (2)

 (a) of the Principal Act, that percentage shall be deemed, for the purposes

of section 115A of the amended Act, to have been specified in car records of the

employer for that year of tax.

 

TAXATION LAWS AMENDMENT ACT 1989No. 11, 1989

- SECT 20

Amendment of assessments

 

 20. Nothing in section 74 of the Principal Act prevents the amendment of an

assessment made before the commencement of this section for the purpose of

giving effect to the amendments made by this Act.

 

PART III – AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

 

TAXATION LAWS AMENDMENT ACT 1989No. 11, 1989

- SECT 21

Principal Act

 

21. In this Part, "Principal Act" means the Income Tax Assessment Act

1936*2*.

*2* 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, 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; Nos. 14, 25, 39, 49,

51, 54 and 103, 1983; Nos. 14, 42, 47, 63, 76, 115, 124, 165 and 174, 1984;

No. 123, 1984 (as amended by No. 65, 1985); Nos. 47, 49, 104, 123, 168 and

174, 1985; No. 173, 1985 (as amended by No. 49, 1986); Nos. 41, 46, 48, 51,

109, 112 and 154, 1986; No. 49, 1986 (as amended by No. 141, 1987); No. 52,

1986 (as amended by No. 141, 1987); No. 90, 1986 (as amended by No. 141,

1987); Nos. 23, 58, 61, 120, 145 and 163, 1987; No. 62, 1987 (as amended by

No. 108, 1987); No. 108, 1987 (as amended by No. 138, 1987); No. 138, 1987 (as

amended by No. 11, 1988); No. 139, 1987 (as amended by Nos. 11 and 78, 1988);

Nos. 8, 11, 59, 75, 78, 80, 87, 95, 97, 127 and 153, 1988; and No. 2, 1989.

 

TAXATION LAWS AMENDMENT ACT 1989No. 11, 1989

- SECT 22

 

 22. After section 23L of the Principal Act the following section is

inserted:

Reimbursement etc. in respect of fringe benefits tax not assessable income

 "23M. The assessable income of a taxpayer shall not include an amount

derived by the taxpayer if subsection 51 (4A) applies to the incurring of the

amount by another person (whether or not a deduction would, apart from that

subsection, be allowable to the other person in respect of the amount).".

 

TAXATION LAWS AMENDMENT ACT 1989No. 11, 1989

- SECT 23

Deductions not allowable for entertainment expenses

 

 23. Section 51AE of the Principal Act is amended by inserting in paragraph

(5A) (d) ", 58LA" after "58L".

 

TAXATION LAWS AMENDMENT ACT 1989No. 11, 1989

- SECT 24

Interpretation

 

 24. Section 82KT of the Principal Act is amended:

 

(a)

 by omitting "(other than rental log book cars)" from sub-subparagraph

 (b) (iii) (A) of the definition of "applicable log book period" in subsection

(1);

 

(b)

 by omitting "(including a vehicle known as a four wheel drive vehicle)"

from the definition of "car" in subsection (1);

 

(c)

 by omitting "but does not include a motor cycle or similar vehicle;"

from the definition of "car" in subsection (1) and substituting the

following:

 "but does not include:

 

(c)

  a motor cycle or similar vehicle;

 

(d)

  a taxi taken on hire; or

 

(e)

  a car taken on hire under an agreement of a kind ordinarily entered

into by persons taking cars on hire intermittently as occasion requires on an

hourly, daily, weekly or other short-term basis unless the car has been or may

reasonably be expected to be taken on hire under successive agreements of a

kind that result in substantial continuity of the taking of the car on

hire;";

 

(d)

 by omitting "a car" from the definition of "odometer records" in

subsection (1) and substituting "a motor vehicle";

 

(e)

 by omitting "the car" (wherever occurring) from the definition of

"odometer records" in subsection (1) and substituting "the motor vehicle";

 

(f)

 by omitting subparagraph (a) (i) of the definition of "retention

period" in subsection (1) and substituting the following subparagraph:

 

"(i)

  in the case of an expense:

 (A) that is in respect of fuel or oil and that was incurred in respect

of a motor vehicle when owned or leased by the taxpayer at a time during the

year of income; and

 (B) where documentary evidence of the expense was not obtained by or on

behalf of the taxpayer;

 whichever of the following times is applicable:

 (C) if the taxpayer elects that subsection 82KW (2) apply in relation

to the motor vehicle in relation to the year of income-the commencement of the

holding period within the meaning of that subsection or, if the first use of

the motor vehicle in the course of producing assessable income of the taxpayer

occurred during that holding period, the commencement of that use;

 (D) in any other case-the commencement of the holding period within the

meaning of section 82KUA or of the period referred to in subparagraph 82KZ (1)

 (c) (i) or, if the first use of the motor vehicle in the course of producing

assessable income of the taxpayer occurred during that holding period or

period, the commencement of that use; or";

 

(g)

 by omitting from subsection (1) the definition of "long-term log book

car" and substituting the following definition:

 " 'long-term log book car', in relation to a taxpayer, in relation to a

year of income, means a log book car in relation to the taxpayer in relation

to the year of income other than a car while it is held by the taxpayer

pending its replacement, for use in the course of producing assessable income

of the taxpayer, by another car;";

 

(h)

 by omitting from subsection (1) the definition of "rental log book car";

 

(j)

 by inserting in subsection (1) the following definition:

 " 'motor vehicle' includes a vehicle known as a four wheel drive

vehicle;".

 

TAXATION LAWS AMENDMENT ACT 1989No. 11, 1989

- SECT 25

 

 25. Sections 82KTA and 82KTB of the Principal Act are repealed and the

following sections are substituted:

Holding of car or motor vehicle

 "82KTA. (1) A reference in this Subdivision:

 

(a)

 to a car held by a taxpayer; or

 

(b)

 to a motor vehicle held by a taxpayer; is a reference to a car or to a

motor vehicle, as the case may be, owned or leased by the taxpayer for use in

the course of producing assessable income of the taxpayer (whether or not the

car or motor vehicle was used for any other purpose while it was so owned or

leased).

 "(2) A reference in this Subdivision:

 

(a)

 to a period during which a car was held by a taxpayer; or

 

(b)

 to a period during which a motor vehicle was held by a taxpayer; is a

reference to a period during which the car or the motor vehicle, as the case

may be, was continuously held by the taxpayer.

Holding period of car or motor vehicle

 "82KTB. Unless the contrary intention appears, a reference in this

Subdivision:

 

(a)

 to a period in a year of income during which a taxpayer held a car; or

 

(b)

 to a period in a year of income during which a taxpayer held a motor

vehicle; is a reference to the period that:

 

(c)

  commences on whichever of the following times is applicable:

 

(i)

  if the taxpayer held the car or the motor vehicle, as the case may

be, at the time of commencement of the year of income-that time;

 

(ii)

  in any other case-the time in the year of income when the taxpayer

commenced to hold the car or the motor vehicle, as the case may be; and

 

(d)

  ends at whichever of the following times is applicable:

 

(i)

  if the taxpayer continued to hold the car or the motor vehicle, as

the case may be, until the time of the end of the year of income-that time;

 

(ii)

  in any other case-the time in the year of income when the taxpayer

ceased to hold the car or the motor vehicle, as the case may be.".

 

TAXATION LAWS AMENDMENT ACT 1989No. 11, 1989

- SECT 26

Deemed specification of matters in odometer records

 

 26. Section 82KTD of the Principal Act is amended:

 

(a)

 by omitting from paragraph (a) "car" and substituting "motor vehicle";

 

(b)

 by omitting from paragraph (b) "the car" and substituting "the motor

vehicle".

 

TAXATION LAWS AMENDMENT ACT 1989No. 11, 1989

- SECT 27

Log book year of income

 

 27. Section 82KTG of the Principal Act is amended by omitting from

subparagraphs (d) (i) and (ii) "that was a rental log book car or any car".

 

TAXATION LAWS AMENDMENT ACT 1989No. 11, 1989

- SECT 28

Deductions not allowable for car expenses incurred in a log book year of income

unless log book records and odometer records etc. are maintained

 

 28. Section 82KUB of the Prinicpal Act is amended by omitting from

paragraphs (a) and (b) "the deductible car is not a rental log book car and".

 

TAXATION LAWS AMENDMENT ACT 1989No. 11, 1989

- SECT 29

Other expenses

 

 29. Section 82KZ of the Principal Act is amended:

 

(a)

 by omitting from subsection (1) "unless documentary evidence of the

expense is obtained by or on behalf of the taxpayer." and substituting the

following:

 "unless:

 

(c)

  if the expense is in respect of fuel or oil in relation to a motor

vehicle:

 

(i)

  odometer records are maintained by or on behalf of the taxpayer

for the period during which the motor vehicle is held by the taxpayer during

the year of income; or

 

(ii)

  documentary evidence of the expense is obtained by or on behalf

of the taxpayer; or

 

(d)

  in any other case-documentary evidence of the expense is obtained by

or on behalf of the taxpayer.";

 

(b)

 by adding at the end the following subsections:

 "(5) Where:

 

(a)

  a travel allowance in respect of the purchase of food and drink and

expenditure incidental to travel (whether or not the allowance is also in

respect of accommodation) was paid or is payable (whether or not under an

industrial instrument) to a taxpayer (in this subsection called the 'relevant

taxpayer');

 

(b)

  the allowance relates solely or principally to travel by the relevant

taxpayer outside Australia;

 

(c)

  the amount of the allowance in respect of the purchase of food and

drink and expenditure incidental to travel is, in the opinion of the

Commissioner, reasonable having regard to the total of the amounts of the

outgoings that it would be reasonable for a taxpayer to whom the allowance was

paid or is payable to incur, in respect of the travel to which the allowance

relates, in respect of the purchase of food and drink and expenditure

incidental to the travel; and

 

(d)

  the total of the amounts of the eligible expenses in respect of the

purchase of food and drink and expenditure incidental to travel, in relation

to the allowance, incurred by the relevant taxpayer and claimed by the

relevant taxpayer as deductions in respect of the year of income in which the

expenses were incurred does not exceed the amount of the allowance in respect

of the purchase of food and drink and expenditure incidental to travel;

 the following provisions have effect in relation to the relevant taxpayer

in relation to the expenses referred to in paragraph (d):

 

(e)

  subsection (1) does not apply, and shall be deemed never to have

applied;

 

(f)

  section 82KZA applies, and shall be deemed always to have applied, as

if:

 

(i)

  paragraph (1) (a) of that section were omitted;

 

(ii)

  subsections (2) and (3) of that section were omitted and the

following subsections were substituted:

 '(2) Where subsection 82KZ (5) applies in relation to a taxpayer in

relation to a travel allowance, the Commissioner may, except where subsection

82KZ (6) also applies in relation to the allowance, by notice in writing

served on the taxpayer, require the taxpayer to produce to the Commissioner,

within a specified period of not less than 28 days, the travel diary relating

to the travel to which the expenses referred to in paragraph 82KZ (5) (d)

relate.

 '(3) Where:

 

(a)

  at the time when the notice is served, the retention period in

relation to any of the expenses has not ended; and

 

(b)

  the taxpayer does not produce the travel diary to the

Commissioner within the period specified in the notice or such longer period

as the Commissioner allows;

 a deduction is not allowable, and shall be deemed never to have been

allowable, under this Act in respect of the expense.';

 

(iii)

  subsection (6) of that section were omitted; and

 

(iv)

  paragraph (7) (g) of that section were amended by omitting

"paragraphs (1) (c) and (3) (f)" and substituting "paragraph (1) (c) and

subsection (3)";

 

(g)

  section 82KZBB applies, and shall be deemed always to have applied,

as if paragraph (1) (g) of that section were amended by omitting "section 82KZ

and paragraphs 82KZA (1) (a), (aa) and (c) and (3) (ba), (c), (d) and (f) do

not apply" and substituting "section 82KZ, paragraphs 82KZA (1) (a), (aa) and

 (c) and subsection 82KZA (3) do not apply".

 "(6) Where:

 

(a)

  a travel allowance was paid or is payable to a taxpayer;

 

(b)

  the allowance relates solely or principally to travel outside

Australia by the taxpayer as the pilot, flight engineer, flight attendant, or

other member of the crew, of an aircraft; and

 

(c)

  the total of the amounts of the eligible expenses, in relation to the

allowance, incurred by the taxpayer and claimed by the taxpayer as deductions

in respect of the year of income in which the expenses were incurred does not

exceed the amount of the allowance;

 the following provisions have effect in relation to the taxpayer in

relation to the expenses referred to in paragraph (c):

 

(d)

  subsections (2) and (3) do not apply, and shall be deemed never to

have applied;

 

(e)

  section 82KZA applies, and shall be deemed always to have applied,

(in addition to any application of that section to the taxpayer in accordance

with subsection (5) of this section) as if paragraph (1) (c) of that section

were omitted and, where apart from this subsection subsection (2) of that

section applies, paragraph (3) (f) of that section were omitted.".

 

TAXATION LAWS AMENDMENT ACT 1989No. 11, 1989

- SECT 30

Retention, and production, of documents

 

 30. Section 82KZA of the Principal Act is amended:

 

(a)

 by omitting paragraph (1) (aa) and substituting the following

paragraph:

 

"(aa)

  in the case of an expense that is in respect of fuel or oil and

that was incurred in respect of a motor vehicle when owned or leased by the

taxpayer:

 

(i)

  documentary evidence of the expense; or

 

(ii)

  odometer records maintained by or on behalf of the taxpayer for:

 (A) if the taxpayer elects that subsection 82KW (2) apply in

relation to the motor vehicle in relation to the year of income-the holding

period within the meaning of that subsection; or

 (B) in any other case-the holding period within the meaning of

section 82KUA or the period referred to in subparagraph 82KZ (1) (c) (i), as

the case requires;";

 

(b)

 by omitting paragraph (3) (ba) and substituting the following

paragraph:

 

"(ba)

  in the case of an expense that is in respect of fuel or oil and

that was incurred in respect of a motor vehicle when owned or leased by the

taxpayer-produces to the Commissioner, within the period specified in the

notice or such longer period as the Commissioner allows:

 

(i)

  documentary evidence of the expense; or

 

(ii)

  odometer records maintained by or on behalf of the taxpayer for:

 (A) if the taxpayer elects that subsection 82KW (2) apply in

relation to the motor vehicle in relation to the year of income-the holding

period within the meaning of that subsection; or

 (B) in any other case-the holding period within the meaning of

section 82KUA or the period referred to in subparagraph 82KZ (1) (c) (i), as

the case requires;";

 

(c)

 by omitting from paragraph (5) (aa) and subsection (6A) "a car" and

substituting "an".

 

TAXATION LAWS AMENDMENT ACT 1989No. 11, 1989

- SECT 31

Relief from certain substantiation requirements where taxpayer had a reasonable

expectation that substantiation would not be required

 

 31. Section 82KZBB of the Principal Act is amended:

 

(a)

 by omitting from paragraph (1) (g) "and (c) and (3)" and substituting

", (aa) and (c) and (3) (ba),";

 

(b)

 by omitting from paragraph (2) (a) and subparagraph (2) (b) (i) "car"

(wherever occurring) and substituting "motor vehicle";

 

(c)

 by omitting from subparagraph (2) (b) (iii) "car after" and

substituting "motor vehicle after";

 

(d)

 by omitting from paragraphs (2) (d) and (g) "car" and substituting

"motor vehicle".

 

TAXATION LAWS AMENDMENT ACT 1989No. 11, 1989

- SECT 32

Other interpretative provisions

 

 32. Section 160K of the Principal Act is amended:

 (a) by inserting in subsection (1) the following definitions:

 " 'Crown lease' means:

 

(a)

  a lease of land granted by the Crown under a statutory law of the

Commonwealth, of a State or of a Territory; or

 

(b)

  a similar lease granted under a statutory law of a foreign country

(whether or not that country is a republic);

 'law', in relation to a foreign country, means a law of that country, or

of any part of, or place in, that country;

 'statutory law' means a law, being a statutory instrument;";

 (b) by omitting from subsection (2) "other than section 160ZZM" and

substituting "(other than sections 160ZZM and 160ZZMA)".

 

TAXATION LAWS AMENDMENT ACT 1989No. 11, 1989

- SECT 33

Composite assets

 

 33. Section 160P of the Principal Act is amended:

 

(a)

 by inserting in paragraph (6) (a) "(other than a periodic roll-over

asset)" after "asset";

 

(b)

 by inserting after subsection (6) the following subsection:

 "(6A) Where:

 

(a)

  a periodic roll-over asset (in this subsection called the 'actual

asset') acquired by a taxpayer before 20 September 1985 has been disposed of

on or after that date;

 

(b)

  if it were assumed that:

 

(i)

  the actual asset; and

 

(ii)

  all the predecessor assets of the actual asset;

 together constituted a single asset (in this subsection called the

'overall asset'), an act or thing done in relation to the actual asset or any

of the predecessor assets after the taxpayer first acquired any of the

predecessor assets would constitute an improvement of a capital nature to the

overall asset;

 

(c)

  if the improvement were a separate asset from the overall asset:

 

(i)

  the improvement would be taken, for the purposes of this Part, to

have been acquired by the taxpayer on or after 20 September 1985; and

 

(ii)

  the indexed cost base to the taxpayer of the improvement would

exceed the amount applicable for the purposes of subparagraph (6) (c) (ii) in

relation to the year of income in which the actual asset was disposed of; and

 

(d)

  the amount of the indexed cost base referred to in subparagraph (c)

 (ii) exceeds 5% of the consideration in respect of the disposal of the actual

asset;

 the improvement shall be taken, for the purposes of this Part, to be an

asset separate from the actual asset and each of those predecessor assets.";

 

(c)

 by adding at the end the following subsections:

 "(9) For the purposes of this section:

 

(a)

  an asset is a predecessor of a second asset if the second asset

replaced the first-mentioned asset in circumstances of a kind referred to in a

periodic roll-over provision; and

 

(b)

  where there is a series of acquisitions of assets such that each

asset replaced a previously acquired asset in circumstances of a kind referred

to in a periodic roll-over provision, each of the assets involved in the

series (other than the last asset to be acquired) shall be taken to be a

predecessor of the last asset to be acquired.

 "(10) In this section:

 'periodic roll-over asset' means an asset to which a periodic roll-over

provision applies;

 'periodic roll-over provision' means section 160ZWA, 160ZZF or 160ZZPE.".

 

TAXATION LAWS AMENDMENT ACT 1989No. 11, 1989

- SECT 34

Indexation of indexed cost base limit

 

 34. Section 160Q of the Principal Act is amended by inserting in paragraph

(10) (a) "relates" after "160P (6) (b)".

 

TAXATION LAWS AMENDMENT ACT 1989No. 11, 1989

- SECT 35

Disposal of taxable Australian assets

 

 35. Section 160T of the Principal Act is amended:

 (a) by omitting "or" from the end of paragraph (g);

 (b) by adding at the end the following paragraphs:

 

"(j)

  the asset comprised a share in, or security of, a company and the

following conditions are satisfied in relation to the acquisition of the asset

by the taxpayer:

 

(i)

  the asset was received by the taxpayer as consideration in

respect of the disposal (in this paragraph called the 'previous disposal') of

another asset by the taxpayer to the company;

 

(ii)

  the previous disposal took place after 28 January 1988;

 

(iii)

  section 160ZZN or 160ZZO applied in respect of the previous

disposal;

 

(iv)

  at the time of the previous disposal, the taxpayer:

 (A) was not a trustee of a trust estate and was not a resident of

Australia; or

 (B) was a trustee of a trust estate that was not a resident trust

estate or of a unit trust that was not a resident unit trust; or

 

(k)

  the following conditions are satisfied in relation to the acquisition

of the asset by the taxpayer:

 

(i)

  the taxpayer acquired the asset as a result of a disposal (in

this paragraph called the 'previous disposal') in respect of which section

160ZZN or 160ZZO applied;

 

(ii)

  the previous disposal was by:

 (A) another taxpayer who was not a trustee of a trust estate and was

not a resident of Australia; or

 (B) a trustee of a trust estate that was not a resident trust estate

or of a unit trust that was not a resident unit trust;

 

(iii)

  the previous disposal took place after 28 January 1988 and on or

before 25 May 1988.".

 

TAXATION LAWS AMENDMENT ACT 1989No. 11, 1989

- SECT 36

Acquisition by lessee of reversionary interest of lessor

 

 36. Section 160ZW of the Principal Act is amended by omitting subsection (1)

and substituting the following subsection:

 "(1) Where:

 

(a)

  the lessee under a lease of land acquires the reversionary interest of

the lessor in the land; and

 

(b)

  section 160ZWA does not apply in respect of that acquisition; the

following provisions of this section have effect for the purposes of this Part.".

 

TAXATION LAWS AMENDMENT ACT 1989No. 11, 1989

- SECT 37

 

 37. After section 160ZW of the Principal Act the following Division is

inserted:

 "Division 5A-Crown Leases

Roll-over or conversion of Crown lease

 "160ZWA. (1) This section applies where:

 

(a)

 at a particular time, one or more Crown leases (in this section called

the 'original Crown leases') owned by a taxpayer expire or are surrendered;

 

(b)

  one or more fresh Crown leases (in this section called the 'new Crown

leases') or one or more freehold interests, or both, is or are granted to the

taxpayer by way of any one or more of the following:

 

(i)

  the renewal of the original Crown leases, where the renewal is

(whether by law, custom or otherwise) wholly or principally attributable to

the taxpayer's prior ownership of the original Crown leases;

 

(ii)

  the extension of the term of the original Crown leases, where the

extension is (whether by law, custom or otherwise) wholly or principally

attributable to the taxpayer's prior ownership of the original Crown leases;

 

(iii)

  changing the purpose for which the land to which the original Crown

leases related may be used;

 

(iv)

  in a case where the original Crown leases were not leases in

perpetuity-the conversion of the original Crown leases to Crown leases in

perpetuity;

 

(v)

  the conversion of the original Crown leases to freehold interests;

 

(vi)

  the consolidation, or the consolidation and division, of the

original Crown leases;

 

(vii)

  the subdivision of the original Crown leases;

 

(viii)

  excising or relinquishing a part (which part is in this section

called the 'excised area') of the area of land to which the original Crown

leases related;

 

(ix)

  expanding the area of land to which the original Crown leases

related; and

 

(c)

 in the case of a taxpayer in the capacity of a trustee of a trust

estate-immediately after the grant of the new Crown leases or the freehold

interests, the taxpayer holds the new Crown leases or the freehold interests

upon the same trust as the taxpayer held the original Crown leases.

 "(2) Subject to subsection (4), this Part (other than this section) does not

apply in respect of the expiry or surrender of any of the original Crown

leases.

 "(3) For the purposes of this section:

 

(a)

 an original Crown lease acquired by the taxpayer before 20 September

1985 shall be taken to be a pre-20 September 1985 original Crown lease; and

 

(b)

  any other original Crown lease shall be taken to be a post-20 September

1985 original Crown lease.

 "(4) Subject to this Part, if the taxpayer received, or was entitled to

receive, any consideration in respect of the expiry or surrender of a post- 20

September 1985 original Crown lease that related, in whole or in part, to the

excised area:

 

(a)

 if the original Crown lease related wholly to the excised area-this

Part applies in respect of the disposal of that Crown lease; and

 

(b)

 if the original Crown lease related only in part to the excised

area-the taxpayer shall be taken, for the purposes of this Part, to have

disposed of that part of that Crown lease that is attributable to the excised

area.

 "(5) If a particular new Crown lease or freehold interest relates wholly to

land to which a pre-20 September 1985 original Crown lease related-the

taxpayer shall be taken, for the purposes of this Part, to have acquired the

new Crown lease or freehold interest before 20 September 1985.

 "(6) If a particular new Crown lease relates wholly to land to which a

post-20 September 1985 original Crown lease related-the new Crown lease shall

be taken, for the purposes of this section, to be a post-20 September 1985 new

Crown lease.

 "(7) If a particular freehold interest relates wholly to land to which a

post-20 September 1985 original Crown lease related-the freehold interest

shall be taken, for the purposes of this section, to be a post-20 September

1985 freehold interest.

 "(8) If a particular new Crown lease relates partly to any 2 or more of the

following:

 

(a)

  land to which a pre-20 September 1985 original Crown lease related;

 

(b)

  land to which a post-20 September 1985 original Crown lease related;

 

(c)

  other land; the following provisions have effect:

 

(d)

  the new Crown lease shall be taken, for the purposes of this Part, to

comprise 2 or 3 separate leases, as follows:

 (i) the new Crown lease to the extent to which it relates to land to

which a pre-20 September 1985 original Crown lease related;

 (ii) the new Crown lease to the extent to which it relates to land to

which a post-20 September 1985 original Crown lease related;

 (iii) the new Crown lease to the extent to which it relates to other land;

 

(e)

  the taxpayer shall be treated, for the purposes of this Part, as if the

taxpayer had acquired the lease referred to in subparagraph (d) (i) before 20

September 1985;

 

(f)

  the lease referred to in subparagraph (d) (ii) shall be taken, for the

purposes of this section, to be a post-20 September 1985 new Crown lease;

 

(g)

 on the disposal of the actual new Crown lease, the consideration in

respect of the disposal of the actual lease shall be apportioned between the

separate leases.

 "(9) If a particular freehold interest relates partly to any 2 or more of

the following:

 

(a)

  land to which a pre-20 September 1985 original Crown lease related;

 

(b)

  land to which a post-20 September 1985 original Crown lease related;

 

(c)

  other land; the following provisions have effect:

 

(d)

  the freehold interest shall be taken, for the purposes of this Part, to

comprise 2 or 3 separate freehold interests as follows:

 

(i)

  the freehold interest to the extent to which it relates to land to

which a pre-20 September 1985 original Crown lease related;

 

(ii)

  the freehold interest to the extent to which it relates to land to

which a post-20 September 1985 original Crown lease related;

 

(iii)

  the freehold interest to the extent to which it relates to other

land;

 

(e)

  the taxpayer shall be treated, for the purposes of this Part, as if the

taxpayer had acquired the freehold interest referred to in subparagraph (d)

 (i) before 20 September 1985;

 

(f)

  the freehold interest referred to in subparagraph (d) (ii) shall be

taken, for the purposes of this section, to be a post-20 September 1985

freehold interest;

 

(g)

 on the disposal of the actual freehold interest, the consideration in

respect of the disposal of the actual freehold interest shall be apportioned

between the separate freehold interests.

 "(10) For the purposes of subsections (11) and (12), a post-20 September

1985 new Crown lease or a post-20 September 1985 freehold interest shall be

taken to be a post-20 September 1985 land asset.

 "(11) The taxpayer shall be taken to have paid or given as consideration in

respect of the acquisition of a post-20 September 1985 land asset:

 

(a)

  for the purposes of ascertaining whether a capital gain accrued to the

taxpayer in the event of a subsequent disposal of the land asset by the

taxpayer-the amount calculated in accordance with the formula:

 

ICB of post CGT orig. leases X

 MV of land asset

 ICB of post CGT orig. leases X MV of post CGT land assets

 where:

 ICB of post CGT orig. leases is the sum of the amounts that would have

been the indexed cost bases to the taxpayer of post-20 September 1985 original

Crown leases for the purposes of this Part if this Part had applied in respect

of the expiry or surrender of the original Crown leases reduced, in a case

where subsection (4) applies in relation to any of the post-20 September 1985

original Crown leases, by so much of those indexed cost bases as is

attributable to the excised area concerned;

 MV of land asset is the number of dollars in the market value of the land

asset immediately after the acquisition of the land asset by the taxpayer; and

 MV of post CGT land assets is the number of dollars in the market value of

the post-20 September 1985 land assets immediately after the acquisition of

the land assets by the taxpayer; or

 

(b)

  for the purposes of ascertaining whether the taxpayer incurred a

capital loss in the event of a subsequent disposal of the land asset by the

taxpayer-the amount calculated in accordance with the formula:

 

RCB of post CGT orig. leases X

 MV of land asset

 RCB of post CGT orig. leases X MV of post CGT land assets

 where:

 RCB of post CGT orig. leases is the sum of the amounts that would have

been the reduced cost bases to the taxpayer of post-20 September 1985 original

Crown leases for the purposes of this Part if this Part had applied in respect

of the expiry or surrender of the original Crown leases reduced, in a case

where subsection (4) applies in relation to any of the post-20 September 1985

original Crown leases, by so much of those reduced cost bases as is

attributable to the excised area concerned;

 MV of land asset is the number of dollars in the market value of the land

asset immediately after the acquisition of the land asset by the taxpayer; and

 MV of post CGT land assets is the number of dollars in the market value of

the post-20 September 1985 land assets immediately after the acquisition of

the land assets by the taxpayer.

 "(12) If a post-20 September 1985 land asset is disposed of by the taxpayer

within 12 months after the earliest day, being a day after 19 September 1985,

on which any post-20 September 1985 original Crown lease was acquired by the

taxpayer, the reference in paragraph (11) (a) to the indexed cost bases to the

taxpayer of post-20 September 1985 original Crown leases is a reference to the

cost bases to the taxpayer of the post-20 September 1985 original Crown

leases.

 "(13) Where:

 

(a)

  the area of land (in this subsection called the 'original area') to

which the original Crown leases related differs from the area of land (in this

subsection called the 'new area') to which the new Crown leases or the

freehold interests relate; and

 

(b)

  having regard to all relevant circumstances, including:

 

(i)

  the difference between the size of the original area and the size of

the new area;

 

(ii)

  the difference between:

 (A) the market value of the new Crown leases or the freehold interests

immediately after the grant of the new Crown leases or freehold interests to

the taxpayer; and

 (B) the amount that would have been the market value of the new Crown

leases or freehold interests, immediately after the grant of the new Crown

leases or freehold interests to the taxpayer, if the new Crown leases or

freehold interests had been granted in respect of the original area instead of

the new area;

 

(iii)

  if land (in this subparagraph called the 'excepted land') that

formed part (whether a minor part or a significant part) of the original area

is not included in the new area but land (in this subparagraph called the 'new

land') that did not form part of the original area is included in the new

area-the circumstances that gave rise to the exclusion of the excepted land

from, and the inclusion of the new land in, the new area and, in particular,

(if applicable) the circumstance that the taxpayer sought, but was unable to

secure, the inclusion of the excepted land and agreed to the inclusion of the

new land only as a substitute for the excepted land; and

 

(iv)

  in the case of the grant of new Crown leases-whether the new Crown

leases were granted for the purpose of correcting errors or omissions;

 the Commissioner is satisfied that it would be unreasonable not to apply

this subsection; the Commissioner may, for the purposes of subsections (5) to

(9) (inclusive), to such extent as the Commissioner considers reasonable,

treat a new Crown lease or a freehold interest as relating, in whole or in

part, to land to which a particular original Crown lease related.

 "(14) In this section:

 'freehold interest' means an estate in fee simple.

 "(15) Where:

 

(a)

 a Crown lease (in this subsection called the 'original lease') of land

(in this subsection called the 'original land') has been granted to a taxpayer;

 

(b)

  after the grant of the original lease, the original land came to be

vested in or held by a government authority; and

 

(c)

  the government authority granted to the taxpayer under a statutory law

of the Commonwealth, of a State or of a Territory a lease (in this subsection

called the 'fresh lease') of the original land, or of that land less an

excised area or together with an additional area; then, for the purposes of

this section, the fresh lease shall be taken to be a Crown lease and to have

been granted by way of renewal of the original lease.

 "(16) If there was a period between the end of the term of the original

lease referred to in subsection (15) and the beginning of the term of the

fresh lease so referred to, that period shall not be taken to preclude the

fresh lease from being regarded for the purposes of that subsection as a

renewal of the original lease provided that the taxpayer concerned continued

in occupation of the original land during that period under a permission,

licence or authority granted by the relevant government authority pending the

grant of the fresh lease.".

 

TAXATION LAWS AMENDMENT ACT 1989No. 11, 1989

- SECT 38

 

 38. After section 160ZYQ of the Principal Act the following Division is

inserted:

 "Division 10A-Rights to Acquire Units in a Unit Trust

Application

 "160ZYQA. Where:

 

(a)

 a person (in this Division called the 'unitholder') holds units in a

unit trust (in this Division called the 'original units');

 

(b)

  after 28 January 1988, the trustee of the unit trust issues to the

unitholder rights (in this Division called the 'rights') to acquire units (in

this Division called 'new units') in the unit trust or to acquire an option

(in this Division called the 'option') to acquire units in the unit trust; and

 

(c)

  the unitholder did not pay or give any consideration in respect of the

acquisition of the rights;

sections 160ZYQB to 160ZYQE (inclusive) have effect.

Exercise of rights not to constitute disposal

 "160ZYQB. The rights shall not be taken to have been disposed of by the

Subparagraph 10A (b) (ii):

 Omit "his or her return for the current", substitute "the employer's car

records for the".

Paragraph 10B (b):

 Omit "his or her return", substitute "the employer's car records".

Sub-subparagraph 10B (b) (i) (B):

 Omit "employer's return", substitute "employer's car records".

Paragraph 10C (1) (a):

 Omit "his or her return", substitute "the employer's car records".

Paragraph 10C (1) (c):

 Omit "return", substitute "car records".

Paragraph 10C (1) (d):

 Omit "his or her return", substitute "the employer's car records".

Paragraph 10C (1) (d):

 Omit "the return", substitute "the car records".

Paragraph 10C (2) (b):

 Omit "his or her return", substitute "the employer's car records".

Subsection 10C (2):

 Omit "the return", substitute "the car records".

Paragraph 65E (a):

 Omit "his or her return", substitute "the employer's car records".

Subparagraph 65E (b) (ii):

 Omit "his or her return", substitute "the employer's car records".

Paragraph 65F (b):

 Omit "his or her return", substitute "the employer's car records".

Sub-subparagraph 65F (b) (i) (B):

 Omit "employer's return", substitute "employer's car records".

Paragraph 65G (a):

 Omit "return", substitute "car records".

Paragraph 65G (b):

 Omit "return", substitute "car records".

Paragraph 65H (1) (a):

 Omit "his or her return", substitute "the employer's car records".

Paragraph 65H (1) (c):

 Omit "return", substitute "car records".

Paragraph 65H (1) (d):

 Omit "his or her return", substitute "the employer's car records".

Paragraph 65H (1) (d):

 Omit "the return", substitute "the car records".

Paragraph 65H (2) (b):

 Omit "his or her return", substitute "the employer's car records".

Subsection 65H (2):

 Omit "the return", substitute "the car records".

Subparagraph 106 (1) (aa) (iv):

 Omit the subparagraph.

Paragraph 115A (1) (a):

 Omit "his or her return", substitute "the employer's car records".

Paragraph 115A (2) (a):

 Omit "his or her return", substitute "the employer's car records".

Section 162D:

 Repeal the section, substitute the following section:

Deemed specification of matters in car records

 "162D. Where an employer fails, through inadvertence, to specify any or all

of the following matters in car records of the employer for a year of tax:

 

(a)

 a period of a kind mentioned in subsection 162H (1) or (2);

 

(b)

 a nomination of the kind mentioned in subsection 162K (2) or 162L (2) or

particulars of such a nomination;

 

(c)

 a percentage of a kind mentioned in section 10A, 10B, 65E or 65F;

the Commissioner may determine that a period, nomination, particular or

percentage of that kind specified by the employer in a document lodged with the

Commissioner shall be treated, for the purposes of this Act, as if it had been

specified by the employer in those car records.".

Sub-subparagraph 162G (1) (g) (iii) (A):

 Omit "his or her return", substitute "the employer's car records".

Sub-subparagraph 162G (2) (g) (iii) (A):

 Omit "his or her return", substitute "the employer's car records".

Subparagraph 162H (1) (b) (ii):

 Omit "his or her return", substitute "the employer's car records".

Subparagraph 162H (2) (b) (ii):

 Omit "his or her return", substitute "the employer's car records".

Subsection 162K (2):

 Omit "his or her return", substitute "the employer's car records".

Subsection 162L (2):

 Omit "his or her return", substitute "the employer's car records".

Notes to theTaxation Laws Amendment Act 1989

Note 1

The Taxation Laws Amendment Act 1989 as shown in this compilation comprises

Act No. 11, 1989 amended as indicated in the Tables below.

Table of Acts

Act

Number

and year

Date

of Assent

Date of commencement

Application, saving or transitional provisions

Taxation Laws Amendment Act 1989

11, 1989

16 Mar 1989

16 Mar 1989

Tax Laws Amendment (2010 Measures No. 2) Act 2010

75, 2010

28 June 2010

Schedule 6 (item 25): 29 June 2010

Table of Amendments

ad. = added or inserted  am. = amended rep. = repealed rs. = repealed and substituted

Provision affected

How affected

S. 53.........................................

rep. No. 75, 2010

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