Taxation Laws Amendment Act 1992 (Cth)
This compilation was prepared on 23 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
Section
Short title [
Commencement [
PART 2 - AMENDMENT OF THE FRINGE BENEFITS TAX ASSESSMENT ACT 1986
Principal Act
Insertion of new section:
Substantiation requirements not to apply in special circumstances
Amendment of assessments
PART 3 - AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936
Principal Act
Exemptions
Index of payments covered by Subdivision
Insertion of new section:
Education entry payment
10. Insertion of new section:
Entitlement to intercorporate dividend rebate where shareholder is
a trustee or partnership
12. Rebate on dividends paid as part of dividend stripping operation
16. Repeal of section 55 and substitution of new sections:
Effective life of property
Annual depreciation percentage
21. Insertion of new section:
Depreciation roll-over relief for unpooled property where CGT
roll-over relief allowed under section 160ZZM, 160ZZMA, 160ZZN,
160ZZNA or 160ZZO or where election for roll-over relief made
under section 59AA
24. Insertion of new sections:
Object of pooling of depreciable property
Taxpayer may create pools to which depreciable property may be
allocated
Pool percentage
Allocation of property to a pool
Cancellation of allocation to pool - taxpayer's notice
Cancellation of allocation to pool – cessation of exclusive
assessable income-producing use
Cancellation of allocation to pool – annual depreciation
percentage not equal to pool percentage
Cancellation of allocation to pool – subsequent application of
special depreciation provisions
Cancellation of allocation to pool - disposal to which section
58 applies
Effect of cancellation of allocation to pool
Reconstruction assumptions and reconstructed depreciated value
Opening balance of pool
Closing balance of pool
Calculation of depreciation - pooled property
Cancellation of allocation of property to a pool – effect on
subsequent operation of depreciation provisions
Cancellation of allocation of property to pool – taxpayer must
use diminishing value method to calculate subsequent
depreciation
No balancing charges/deductions while property allocated to
pool
Taxpayer's assessable income to include proceeds of disposal
of pooled property etc.
Disposal of pooled property - application of CGT provisions
Taxpayers may use their own form of words in pool notices
27. Insertion of new section:
Section 73A roll-over relief where CGT roll-over relief allowed
under section 160ZZM, 160ZZMA, 160ZZN, 160ZZNA or 160ZZO
34. Insertion of new section:
Roll-over relief where CGT roll-over relief allowed under
section 160ZZM, 160ZZMA, 160ZZN, 160ZZNA or 160ZZO or where
election for roll-over relief made under section 122R
35. Insertion of new section:
Roll-over relief where CGT roll-over relief allowed under
section 160ZZM, 160ZZMA, 160ZZN, 160ZZNA or 160ZZO or where
election for roll-over relief made under section 122R
37. Insertion of new section:
Roll-over relief where CGT roll-over relief allowed under
section 160ZZM, 160ZZMA, 160ZZN, 160ZZNA or 160ZZO or where
election for roll-over relief made under section 123F
38. Insertion of new section:
Roll-over relief where CGT roll-over relief allowed under
section 160ZZM, 160ZZMA, 160ZZN, 160ZZNA or 160ZZO or where
election for roll-over relief made under section 123F
40. Insertion of new section:
Roll-over relief where CGT roll-over relief allowed under
section 160ZZM, 160ZZMA, 160ZZN, 160ZZNA or 160ZZO or where
election for roll-over relief made under section 124AO
45. Insertion of new section:
Roll-over relief where CGT roll-over relief allowed under
section 160ZZM, 160ZZMA, 160ZZN, 160ZZNA or 160ZZO
46. Insertion of new section and Subdivision:
Roll-over relief where CGT roll-over relief allowed under
section 160ZZM, 160ZZMA, 160ZZN, 160ZZNA or 160ZZO
Transactions between persons not at arm's length
47. Insertion of new section:
Roll-over relief where CGT roll-over relief allowed under
section 160ZZM, 160ZZMA, 160ZZN, 160ZZNA or 160ZZO or where
election for roll-over relief made under section 122W
55. Insertion of new section:
221YHZLA. Refunds in relation to certain credit entitlements
58. Insertion of new section:
Widely distributed finance shares
61. Notional allowable deduction for eligible finance share dividends and widely
63. Application of amendments - general
64. Application of depreciation amendments: effective life; 100% depreciation;
broadbanding; loading and pooling
65. Application of tax file number amendments
71. Transitional - section 58 of the amended Act
72. Transitional - elective capital deduction roll-over relief where CGT
roll-over relief available under section 160ZZO of the Principal Act and
property disposed of after 6 December 1990
PART 4 - AMENDMENT OF THE INCOME TAX (INTERNATIONAL AGREEMENTS) ACT
78. Application of amendment
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992 - LONG TITLE
An Act to amend the law relating to taxation
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 1
Short title [
1. This Act may be cited as the Taxation Laws Amendment Act 1992.
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 2
Commencement [
2. This Act commences on the day on which it receives the Royal Assent.
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 3
Principal Act
3. In this Part, "Principal Act" means the Fringe Benefits Tax Assessment
Act 1986.*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); Nos. 6, 78, 95, 97 and 153, 1988; Nos. 2, 11, 97 and 107, 1989; Nos.
58, 60 and 135, 1990; and Nos. 48 and 100, 1991.
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 4
4. After section 123A of the Principal Act the following section is inserted
in Part X:
Substantiation requirements not to apply in special circumstances
"123B.(1) If the Commissioner is satisfied that:
a benefit has been provided in, or in respect of, a year of tax in
respect of the employment of an employee of an employer; and
it would be unreasonable for the substantiation requirements under this
Act in relation to the benefit to apply; the substantiation requirements do
not so apply.
"(2) In making a decision under subsection (1), the Commissioner is to have
regard to:
the nature and quality of evidence that the employer makes available to
substantiate:
if the benefit provided is a fringe benefit - the
taxable value of the fringe benefit; or
whether the benefit provided is an exempt benefit;
and
special circumstances affecting the employer, including, but not
limited to, the following:
the extent to which the substantiation requirements
were complied with;
whether the failure to comply with the substantiation
requirements was inadvertent or deliberate.
"(3) The Commissioner may only make a decision under subsection (1):
in the course of reviewing on the Commissioner's own motion the affairs
of the employer; or
in considering an objection against the assessment of the employer of
the year of tax; or
in considering whether to make an amendment of the assessment of the
employer of the year of tax in response to a request made by the employer
before the commencement of this section.
"(4) This section does not apply to a declaration made for the purposes of
this Act.
"(5) If:
an employer makes an application under subsection 82(1) or (2), as in
force immediately before the commencement of section 113 of the Taxation Laws
Amendment Act (No. 3) 1991; and
the period mentioned in the subsection concerned ended before the
commencement of this section;
the following provisions have effect:
the Commissioner, the Tribunal or the Federal Court of Australia, as
the case requires, when making a decision on the application, must disregard
subsection (1) of this section;
if the Commissioner, the Tribunal or the Federal Court of Australia, as
the case requires, grants the application:
the employer's objection has no effect to the extent
that it relates to grounds based on subsection (1) of this section; and
the Tribunal or the Federal Court of Australia, when
making a decision under:
paragraph 86A(a) of this Act, as in force
immediately before the commencement of section 113 of the Taxation Laws
Amendment Act (No. 3) 1991; or
paragraph 14ZZK(a) or 14ZZO(a) of the Taxation
Administration Act 1953, as the case requires;
must disregard subsection (1) of this section.
"(6) This section applies to a benefit provided before, at or after the
commencement of this section.".
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 5
Amendment of assessments
5. Section 74 of the Principal Act does not prevent the amendment of an
assessment made before the commencement of this section for the purpose of
giving effect to this Part.
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 6
Principal Act
6. In this Part, "Principal Act" means the Income Tax Assessment Act
1936.*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; Nos. 2, 11, 56, 70,
73, 105, 107, 129, 163 and 167, 1989; No. 97, 1989 (as amended by No. 105,
1989); Nos. 20, 35, 45, 57, 58, 60, 61, 87, 119 and 135, 1990; and Nos. 4, 5,
6, 48, 55 and 100, 1991.
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 7
Exemptions
7. Section 23 of the Principal Act is amended:
by omitting from the end of subparagraph (z)(viii) "or";
by adding at the end of paragraph (z) the following word and
subparagraph:
(x) an education entry payment received under Part 2.13A of the Social
Security Act 1991;";
by omitting from the end of subparagraph (zaa)(v) "or";
by omitting from the end of subparagraph (zaa)(vi) "and" and
substituting "or";
by adding at the end of paragraph (zaa) the following subparagraph:
an education entry payment received under Part 2.13A of the Social
Security Act 1991;".
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 8
Index of payments covered by Subdivision
8. Section 24AB of the Principal Act is amended by inserting in the table in
the appropriate alphabetical position, determined on a letter-by-letter
basis:
"Education entry payment 24ABNA".
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 9
9. After section 24ABN of the Principal Act the following section is
inserted:
Education entry payment
"24ABNA. Payments of education entry payment under Part 2.13A of the Social
Security Act 1991 are not exempt.".
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 10
10. Before section 46 of the Principal Act the following section is
inserted:
Entitlement to intercorporate dividend rebate where shareholder is a trustee
or partnership
(Shareholder a trustee - beneficiary absolutely entitled to share)
"45Z.(1) If:
a share in a company (in this subsection called the 'first company') is
held by a shareholder as trustee for another company (in this subsection
called the 'second company') who is absolutely entitled to the share as
against the trustee; and
the second company is not a taxpayer in the capacity of trustee; and
a dividend is paid to the trustee in respect of the share; and
the whole or a part of an amount included in the second company's
assessable income under section 97 (which whole or part is in this subsection
called the 'assessable amount') is attributable to that dividend;
sections 46 to 46F (inclusive) apply as if:
the second company were a shareholder in the first company; and
the dividend were paid by the first company to the second company
instead of to the trustee; and
the amount of the dividend were equal to the assessable amount; and
the second company's interest in the share were the share in respect of
which the dividend was paid; and
a reference to the year of income in which the dividend was paid to the
second company were a reference to the year of income to which the assessable
amount relates; and
a reference to a specified date or specified time before, on, at or
after which the dividend was paid to the second company were a reference to
the date or time before, on, at or after which the dividend was paid to the
trustee; and
the question of when the share was issued to the second company were
answered by reference to the time when the share was issued to the trustee;
and
the question of when the share was issued to a person other than the
second company were answered by reference to the time when the share was
issued to the other person; and
the question whether the payment of the dividend to the second company
may reasonably be regarded as equivalent to the payment of interest on a loan
were answered by reference to matters relating to the payment of the dividend
to the trustee; and
the question of the extent to which the dividend was paid by the first
company to the second company out of particular profits were answered by
reference to the dividend paid to the trustee; and
the question of the extent to which the dividend paid to the second
company was franked were answered by reference to the dividend paid to the
trustee; and
the question of when the dividend paid to the second company was
declared were answered by reference to the dividend paid to the trustee.
(Shareholder a trustee - beneficiary not absolutely entitled to share)
"(2) If:
a share in a company (in this subsection called the 'first company') is
held by a shareholder as trustee of a trust estate; and
a dividend is paid to the trustee in respect of the share; and
the following conditions are satisfied in relation to a taxpayer, being
a company (in this subsection called the 'second company'):
the second company is not a taxpayer in the capacity
of trustee;
the second company is not absolutely entitled to the
share as against the trustee;
an amount is included in the assessable income of
the second company of a year of income under subsection 92(1) or section 97 or
100;
the whole or a part of the amount so included in the
second company's assessable income (which whole or part is in this subsection
called the 'assessable amount') is either:
directly attributable to that dividend; or
indirectly attributable to that dividend, through
one or more interposed trusts or partnerships;
sections 46 to 46F (inclusive) apply as if:
the second company were a shareholder in the first company; and
the dividend were paid by the first company to the second company
instead of to the trustee; and
the amount of the dividend were equal to the assessable amount; and
if the second company has an interest in the share (whether that
interest is held directly or indirectly through one or more interposed trusts
or partnerships) - that interest were the share in respect of which the
dividend was paid; and
if the second company does not have an interest in the share (including
an interest held directly or indirectly through one or more interposed trusts
or partnerships):
the second company had an interest in the share; and
that interest had been acquired by the second company
at the time when the share was acquired by the trustee; and
that interest were the share in respect of which the
dividend was paid; and
a reference to the year of income in which the dividend was paid to the
second company were a reference to the year of income to which the assessable
amount relates; and
a reference to a specified date or specified time before, on, at or
after which the dividend was paid to the second company were a reference to
the date or time before, on, at or after which the dividend was paid to the
trustee; and
the question of when the share was issued to the second company were
answered by reference to the time when the share was issued to the trustee; and
the question of when the share was issued to a person other than the
second company were answered by reference to the time when the share was
issued to the other person; and
the question whether the payment of the dividend to the second company
may reasonably be regarded as equivalent to the payment of interest on a loan
were answered by reference to matters relating to the payment of the dividend
to the trustee; and
the question of the extent to which the dividend was paid by the first
company to the second company out of particular profits were answered by
reference to the dividend paid to the trustee; and
the question of the extent to which the dividend paid to the second
company was franked were answered by reference to the dividend paid to the
trustee; and
the question of when the dividend paid to the second company was
declared were answered by reference to the dividend paid to the trustee.
(Shareholder a partnership - non-trustee partner)
"(3) If:
a share in a company (in this subsection called the 'first company') is
held by a partnership in which another company (in this subsection called the
'second company') is a partner; and
the second company is not a taxpayer in the capacity of trustee; and
a dividend is paid to the partnership in respect of the share; and
the whole or a part of an amount included in the second company's
assessable income under section 92 (which whole or part is in this subsection
called the 'assessable amount') is attributable to that dividend; sections 46
to 46F (inclusive) apply as if:
the second company were a shareholder in the first company; and
the dividend were paid by the first company to the second company
instead of to the partnership; and
the amount of the dividend were equal to the assessable amount; and
the second company's interest in the share were the share in respect of
which the dividend was paid; and
a reference to the year of income in which the dividend was paid to the
second company were a reference to the year of income to which the assessable
amount relates; and
a reference to a specified date or specified time before, on, at or
after which the dividend was paid to the second company were a reference to
the date or time before, on, at or after which the dividend was paid to the
partnership; and
the question of when the share was issued to the second company were
answered by reference to the time when the share was issued to the
partnership; and
the question of when the share was issued to a person other than the
second company were answered by reference to the time when the share was
issued to the other person; and
the question whether the payment of the dividend to the second company
may reasonably be regarded as equivalent to the payment of interest on a loan
were answered by reference to matters relating to the payment of the dividend
to the partnership; and
the question of the extent to which the dividend was paid by the first
company to the second company out of particular profits were answered by
reference to the dividend paid to the partnership; and
the question of the extent to which the dividend paid to the second
company was franked were answered by reference to the dividend paid to the
partnership; and
the question of when the dividend paid to the second company was
declared were answered by reference to the dividend paid to the partnership.
(Shareholder a partnership - trustee partner)
"(4) If:
a share in a company (in this subsection called the 'first company') is
held by a partnership; and
a dividend is paid to the partnership in respect of the share; and
the following conditions are satisfied in relation to a taxpayer, being
a company (in this subsection called the 'second company'):
the second company is not a taxpayer in the capacity
of trustee;
the second company is not a partner in the
partnership;
an amount is included in the assessable income of
the second company of a year of income under subsection 92(1) or section 97 or
100;
the whole or a part of the amount so included in the
second company's assessable income (which whole or part is in this subsection
called the 'assessable amount') is either:
directly attributable to that dividend; or
indirectly attributable to that dividend, through
one or more interposed trusts or partnerships;
sections 46 to 46F (inclusive) apply as if:
the second company were a shareholder in the first company; and
the dividend were paid by the first company to the second company
instead of to the partnership; and
the amount of the dividend were equal to the assessable amount; and
if the second company has an interest in the share (whether that
interest is held directly or indirectly through one or more interposed trusts
or partnerships) - that interest were the share in respect of which the
dividend was paid; and
if the second company does not have an interest in the share (including
an interest held directly or indirectly through one or more interposed trusts
or partnerships):
the second company had an interest in the share; and
that interest had been acquired by the second company
at the time when the share was acquired by the partnership; and
that interest were the share in respect of which the
dividend was paid; and
a reference to the year of income in which the dividend was paid to the
second company were a reference to the year of income to which the assessable
amount relates; and
a reference to a specified date or specified time before, on, at or
after which the dividend was paid to the second company were a reference to
the date or time before, on, at or after which the dividend was paid to the
partnership; and
the question of when the share was issued to the second company were
answered by reference to the time when the share was issued to the
partnership; and
the question of when the share was issued to a person other than the
second company were answered by reference to the time when the share was
issued to the other person; and
the question whether the payment of the dividend to the second company
may reasonably be regarded as equivalent to the payment of interest on a loan
were answered by reference to matters relating to the payment of the dividend
to the partnership; and
the question of the extent to which the dividend was paid by the first
company to the second company out of particular profits were answered by
reference to the dividend paid to the partnership; and
the question of the extent to which the dividend paid to the second
company was franked were answered by reference to the dividend paid to the
partnership; and
the question of when the dividend paid to the second company was
declared were answered by reference to the dividend paid to the partnership.
(Modifications for corporate unit trusts and public trading trusts)
"(5) A reference in paragraphs (1)(a) and (b), (2)(a) and (c), (3)(b) and
(4)(c) to a trustee does not include a reference to the trustee of:
a corporate unit trust within the meaning of Division 6B; or
a public trading trust within the meaning of Division 6C.".
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 11
Rebate on dividends
11. Section 46 of the Principal Act is amended by adding at the end the
following subsections:
"(12) A shareholder in a capacity of trustee is not, and is taken never to
have been, entitled to a rebate under this section.
"(13) Subsection (12) does not apply to the trustee of:
a corporate unit trust within the meaning of Division 6B; or
a public trading trust within the meaning of Division 6C.".
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 12
Rebate on dividends paid as part of dividend stripping operation
12. Section 46A of the Principal Act is amended by adding at the end the
following subsections:
"(19) A shareholder in a capacity of trustee is not, and is taken never to
have been, entitled to a rebate under this section.
"(20) Subsection (19) does not apply to the trustee of:
a corporate unit trust within the meaning of Division 6B; or
a public trading trust within the meaning of Division 6C.".
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 13
Composition of taxable income
13. Section 50N of the Principal Act is amended by adding at the end the
following subsection:
"(24) Section 45Z applies for the purposes of subsection (23) of this
section in a corresponding way to the way in which it applies for the purposes
of sections 46 and 46A.".
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 14
Losses and outgoings
14. Section 51 of the Principal Act is amended by inserting after subsection
(2) the following subsection:
"(2A) If:
a taxpayer incurs expenditure in a year of income in connection with
the acquisition of stock that will become trading stock on hand of the
taxpayer; and
as at the end of the year of income, a part of the stock is not, and
has not been, trading stock on hand of the taxpayer; and
a deduction under subsection (1) in respect of the expenditure would,
apart from this subsection, be allowable from the assessable income of the
taxpayer of the year of income;
then, instead of the deduction under subsection (1) being allowable as
mentioned in paragraph (c), a deduction under subsection (1) in relation to
each part of the stock, equal to so much of the expenditure as is attributable
to that part, is allowable from the assessable income of the taxpayer of:
the year of income in which that part of the stock first becomes
trading stock on hand of the taxpayer; or
if an amount is included in the assessable income of the taxpayer of an
earlier year of income in connection with the disposal of that part of the
stock - that earlier year of income.".
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 15
Depreciation
15. Section 54 of the Principal Act is amended by inserting after subsection
(2) the following subsection:
"(2A) If the annual depreciation percentage fixed under section 55 for a
unit of property owned by a taxpayer is 100%, depreciation is only allowable
for the year of income in which the property is first used, or first installed
and held in reserve, as mentioned in subsection (1).".
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 16
16. Section 55 of the Principal Act is repealed and the following sections
are substituted:
Effective life of property
(Definition of effective life)
"54A.(1) For the purposes of section 55, the effective life of a unit of
property owned by a taxpayer is whichever of the following periods is
applicable:
if:
there is in force a determination by the Commissioner
under subsection (2) which specifies a period that the taxpayer may elect to
adopt as the effective life of the property; and
the taxpayer makes a written election to adopt that
period;
that period;
if paragraph (a) does not apply - the period, worked out as at the time
when the property is first used for assessable income-producing purposes by
the taxpayer, during which it would be reasonable to conclude that the
property would be held by the taxpayer assuming:
if the property was not new at that time - that the
property was new at that time; and
that the taxpayer was to hold the property until it
was no longer reasonably capable of being used, by the taxpayer or by any
other person, for:
assessable income-producing purposes; or
exempt income-producing purposes; and
if, at the time the property was first used for
assessable income-producing purposes by the taxpayer, it may reasonably be
expected that the property will be subject to wear and tear by the taxpayer at
a particular rate - that that rate were the rate of wear and tear to which the
property will be subject; and
that the property were to be maintained in reasonably
good order and condition;
if:
paragraph (a) does not apply; and
the property was new at the time when the property
was first used by the taxpayer for assessable income-producing purposes; and
at the time of that first use, it would be
reasonable to conclude that the property is likely to be:
scrapped; or
sold for scrap; or
abandoned;
by the taxpayer at a later time; and
the period beginning at the time of that first use
and ending at that later time is shorter than the period mentioned in
paragraph (b);
that shorter period;
if:
paragraph (a) does not apply; and
the property was not new at the time when the
property was first used by the taxpayer for assessable income-producing
purposes; and
assuming that the property was new at the time of
that first use, it would be reasonable to conclude at that time that the
property would be likely to be:
scrapped; or
sold for scrap; or
abandoned;
by the taxayer at a later time; and
the period beginning at the time of that first use
and ending at that later time is shorter than the period mentioned in
paragraph (b);
that shorter period.
(Commissioner may determine etc. periods which taxpayers may elect to adopt as
the effective lives of units of property)
"(2) The Commissioner may, by writing:
make a determination specifying periods that taxpayers may elect to
adopt as the effective lives of units of property owned by them; and
revoke or vary such a determination.
(Period may be specified unconditionally)
"(3) A period may be specified unconditionally.
(Specification of period may be conditional)
"(4) A period, or 2 or more different periods, may be specified in relation
to property of a particular kind subject to one or more specified conditions
being satisfied as at the time when the property is first used by the taxpayer
for assessable income-producing purposes.
(Conditions may relate to use)
"(5) The conditions may include, but are not limited to, conditions relating
to:
if the property is installed ready for use for the purpose of producing
assessable income and held in reserve by the taxpayer - the particular use or
uses for which the property has been installed and held in reserve; or
in any other case - the particular use or uses of the property by the
taxpayer.
(Criteria for specifying periods)
"(6) The matters to which the Commissioner may have regard in specifying
periods include, but are not limited to, the periods that, apart from
paragraph (1)(a), would be applicable under paragraph (1)(b) to property owned
by particular groups of taxpayers who use similar property in a similar
manner.
(Taxpayer may require the Commissioner to vary a determination so that it
specifies a period in relation to property)
"(7) If, at the time when the property was first used by the taxpayer for
assessable income-producing purposes:
a determination is in force under subsection (2); and
the determination does not specify a period that the taxpayer may elect
to adopt as the effective life of the property;
the taxpayer may lodge with the Commissioner a written notice requiring the
Commissioner to vary the determination in accordance with paragraph (2)(b) so
that the determination specifies such a period.
(Time within which Commissioner must vary determination)
"(8) The Commissioner must comply with the requirement to vary a
determination by whichever is the latest of the following times:
the end of the period of 60 days (in this subsection called the
`original 60-day period') after the notice requiring the Commissioner to vary
the determination is lodged;
if the Commissioner, by written notice served on the taxpayer within
the original 60-day period, requests the taxpayer to give information relating
to the variation sought by the taxpayer - the end of 60 days after the
Commissioner receives that information;
if the Commissioner, by written notice served under section 264 within
the original 60-day period, requires a person other than the taxpayer to give
information relating to the variation sought by the taxpayer - the end of 60
days after the Commissioner receives that information.
(Determination etc. to be available for sale to public)
"(9) A determination, or a variation or revocation of a determination, must
be made available for sale to the public.
(When determination etc. may be retrospective)
"(10) A determination, or a variation or revocation of a determination, may
be expressed to apply in relation to property first used by taxpayers for
assessable income- producing purposes before the determination, variation or
revocation, as the case may be, was made if, and only if:
in the case of a determination or a variation of a determination - the
specified period is the first period applicable to property of that kind; or
in any case - the retrospectivity works to the advantage of taxpayers
in calculating the effective lives of property of that kind.
(Election to adopt period specified in determination as effective life)
"(11) An election under paragraph (1)(a) is irrevocable and must be made:
within 6 months after the later of the following:
the end of the year of income in which the property is
first used by the taxpayer for assessable income-producing purposes;
the commencement of this section; or
within such further period as the Commissioner allows.
(Commissioner to make first determination within 28 days)
"(12) The Commissioner must make a determination under subsection (2) within
28 days after the commencement of this section.
(Meaning of 'use for assessable income-producing purposes')
"(13) For the purposes of this section, a unit of property is taken to be
used for assessable income-producing purposes by a taxpayer if, and only if,
the property is:
used by the taxpayer for the purpose of producing assessable income;
or
installed ready for use for that purpose and held in reserve by the
taxpayer.
(Meaning of 'use for exempt income-producing purposes')
"(14) For the purposes of this section, a unit of property is taken to be
used for exempt income-producing purposes by a person if, and only if, the
property is:
used by the person for the purpose of producing exempt income; or
installed ready for use for that purpose and held in reserve by the
person.
Annual depreciation percentage
"55.(1) The annual depreciation percentage for a unit of property owned by a
taxpayer is worked out as follows.
"(2) (Step 1: raw percentage) Work out, to 2 decimal places, the percentage
(in this section called the 'raw percentage') using the formula:
1
x 100
in effective life
where:
'No. of years in effective life' means:
the number (calculated to 2 decimal places) of years in the effective
life of the property; or
1;
whichever is the greater.
"(3) (Step 2: 100% depreciation) If:
the cost of the property does not exceed $300 or such higher amount as
is prescribed; or
the raw percentage is more than 33;f8%;
the annual depreciation percentage is 100%.
"(3A) (Step 2A: scientific research) If:
step 2 does not apply; and
the property is used by the taxpayer for the purposes of scientific
research only; and
the property was acquired by the taxpayer before 1 July 1995;
the annual depreciation percentage is 33;f8%.
"(4) (Step 3: employee amenities) If neither step 2 nor 2A applies and the
property is used by the taxpayer principally for the purpose of providing
clothing cupboards, first aid, rest-room or recreational facilities, or meals
or facilities for meals:
for persons employed by the taxpayer in a business carried on by the
taxpayer for the purpose of producing assessable income; or
for the care of children of those persons;
the annual depreciation percentage is 33;f8%.
"(5) (Step 4: broadbanding) If:
none of steps 2, 2A and 3 apply; and
the raw percentage is below one of the following:
23/4%, 5%, 73/4%, 10%, 15%, 20% or 33;f8%; and
the property is none of the following:
a painting, sculpture, drawing, engraving or
photograph;
a reproduction of any such thing;
property of a description, or of a use, similar to
anything covered by subparagraph (i) or (ii); and
the taxpayer does not elect, in accordance with subsection (8), to
waive broadbanding;
the raw percentage is re-calculated as the next highest of those percentages.
"(6) (Step 5: loading) If:
none of steps 2, 2A and 3 apply; and
the property is not an eligible motor vehicle; and
a deduction has not been allowed, and is not allowable, to the taxpayer
in relation to any year of income in respect of the property in accordance
with section 57AK or 57AM;
the annual depreciation percentage is calculated using the formula:
x 1.2
"(7) (Step 6: no loading) If none of steps 2, 2A, 3 and 5 apply, the annual
depreciation percentage is the raw percentage.
"(8) A taxpayer may elect to waive broadbanding for a unit of property in
respect of which depreciation is allowable to the taxpayer for a particular
year of income.
"(9) In this section:
'eligible motor vehicle' means a motor vehicle (including a vehicle known as
a four wheel drive vehicle) that is:
a motor car, station wagon, panel van, utility truck or similar
vehicle; or
a motor cycle or similar vehicle; or
any other road vehicle designed to carry a load of less than one tonne
or fewer than 9 passengers;
'scientific research' has the same meaning as in section 73A.".
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 17
Calculation of depreciation
17. Section 56 of the Principal Act is amended:
by omitting from paragraph (1)(a) "percentage fixed by or under section
55, or under the previous Act," and substituting "annual depreciation
percentage fixed under section 55";
by omitting from paragraph (1)(b) "percentage fixed, by or under
section 55," and substituting "annual depreciation percentage fixed under
section 55";
by inserting in subsection (1A) "the annual depreciation percentage
fixed under section 55 for a unit of property is less than 100% and" after
"Where".
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 18
Limit on cost price for depreciation of motor vehicle
18. Section 57AF of the Principal Act is amended by omitting from subsection
(10) all the words preceding "before" and substituting "The Commissioner must
publish by written notice".
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 19
Repeal of section 57AG
19. Section 57AG of the Principal Act is repealed.
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 20
Special depreciation on property used for basic iron or steel production
20. Section 57AK of the Principal Act is amended by omitting from paragraph
(5)(a) "the annual depreciation fixed under subsection 55(1), as increased by
any amount that would, but for this section, be applicable under section
57AG," and substituting "the annual depreciation percentage fixed under
section 55,".
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 21
21. After section 57AM of the Principal Act the following section is
inserted:
Depreciation roll-over relief for unpooled property where CGT roll-over relief
allowed under section 160ZZM, 160ZZMA, 160ZZN, 160ZZNA or 160ZZO or where
election for roll-over relief made under section 59AA
(Roll-over relief where CGT roll-over relief allowed)
"58.(1) This section applies to the disposal of a unit of property by a
taxpayer (in this section called the 'transferor') to another taxpayer (in
this section called the 'transferee') if:
either:
in a case where the transferor is not a partnership -
section 160ZZM, 160ZZMA, 160ZZN or 160ZZO applies to the disposal of the
property by the transferor; or
if the transferor is a partnership - the property is
partnership property of the partnership and section 160ZZNA applies to the
corresponding disposal, by all of the partners in the partnership, of their
interests in the property; and
depreciation has been allowed, or is allowable, to the transferor in
respect of the property.
(Roll-over relief where joint election made under section 59AA)
"(2) This section also applies if a joint election for roll-over relief is
made under section 59AA by both the transferor and the transferee referred to
in that section in relation to the disposal of a unit of property.
(No balancing charges or deductions)
"(3) Section 59 (which deals with balancing charges and deductions) does not
apply to the disposal of the property by the transferor.
(Transferee to inherit certain characteristics from transferor)
"(4) The provisions of this Act relating to depreciation apply as if:
if the depreciation allowable to the transferor in respect of the
property for the year of income in which the disposal occurred was calculated
in accordance with paragraph 56(1)(a):
the transferee were not entitled to make an election
under subsection 56(1AA) in relation to the property; and
the transferee had acquired the unit of property for
a consideration equal to the depreciated value of the property immediately
before the time of disposal (worked out on the assumption that subsection
60(2) had not been enacted); and
if:
the depreciation allowable to the transferor in
respect of the property for the year of income in which the disposal occurred
was calculated in accordance with paragraph 56(1)(b); or
both:
the depreciation allowable to the transferor in
respect of the property for the year of income in which the disposal occurred
was calculated in accordance with section 57AK or 57AM; and
neither section 57AK nor 57AM applied to the
transferee in respect of the property;
then:
the transferee had made an election under subsection
56(1AA) in relation to the property; and
the transferee had acquired the unit of property for
a consideration equal to the cost of the unit to the transferor; and
depreciation were not allowable to the transferee in
respect of:
so much of the cost of the property as was allowed
or allowable to the transferor in respect of depreciation in relation to the
property (worked out as if section 61 had not been enacted); or
if there have been 2 or more prior successive
applications of this section - so much of the cost of the property as was
allowed or allowable to the prior successive transferors in respect of
depreciation in relation to the property (worked out as if section 61 had not
been enacted); and
the depreciated value of the property at a time when
the property was owned by the transferee were worked out as if the total of:
the amounts allowed or allowable to the transferor
in respect of depreciation in relation to the property; and
if there have been 2 or more prior successive
applications of this section - the amounts allowed or allowable to the prior
successive transferors in respect of depreciation in relation to the
property;
were taken to have been amounts allowed or allowable to the transferee in
respect of depreciation in relation to the property; and
the effective life of the property worked out under section 54A in
relation to the transferor were the effective life of the property worked out
under that section in relation to the transferee; and
if step 2A in section 55 applied to the transferor in relation to the
property in relation to the year of income in which the disposal occurred -
that step has effect, in relation to the transferee in relation to the
property, as if the transferee had acquired the property before 1 July 1995.
(Section 57AK - special rules)
"(5) If section 57AK (which deals with iron or steel production) applied to
the transferor in relation to the property in relation to the year of income
of the transferor in which the time of the disposal occurred, then:
section 57AK has effect, in relation to the transferee and in relation
to the property, as if:
the conditions set out in paragraphs 57AK(1)(b) and
(c) that were satisfied in relation to the transferor were satisfied in
relation to the transferee; and
subsection 57AK(8) had not been enacted; and
if section 57AK applies to the transferee in relation to the property -
the provisions of this Act relating to depreciation apply as if:
the transferee had acquired the unit of property for a
consideration equal to the cost of the unit to the transferor; and
depreciation were not allowable to the transferee in
respect of:
so much of the cost of the property as was allowed
or allowable to the transferor in respect of depreciation in relation to the
property (worked out as if section 61 had not been enacted); or
if there have been 2 or more prior successive
applications of this section - so much of the cost of the property as was
allowed or allowable to the prior successive transferors in respect of
depreciation in relation to the property (worked out as if section 61 had not
been enacted); and
the depreciated value of the property at a time when
the property was owned by the transferee were worked out as if the total of:
the amounts allowed or allowable to the transferor
in respect of depreciation in relation to the property; and
if there have been 2 or more prior successive
applications of this section - the amounts allowed or allowable to the prior
successive tranferors in respect of depreciation in relation to the property;
were taken to have been amounts allowed or allowable to the transferee in
respect of depreciation in relation to the property.
(Pro-rating of depreciation)
"(6) Subsection 56(1A) (which deals with pro-rating) applies to the
transferor and transferee in relation to the year of income in which the
disposal occurred as if a reference to depreciation allowable in accordance
with subsection 56(1) in respect of the property included a reference to
depreciation allowable otherwise than in accordance with subsection 56(1).
(Disposal by transferee where no roll-over relief - inheritance of deductions)
"(7) If:
after the disposal of the property to the transferee, the property is
lost or destroyed or the transferee disposes of the property; and
in the case of a disposal by the transferee - this section does not
apply to the disposal;
then, for the purposes of the application of subsection 59(2) in relation to
the loss, destruction or disposal, the total of:
the amounts allowed or allowable to the transferor in respect of
depreciation in relation to the property; and
if there have been 2 or more prior successive applications of this
section - the amounts allowed or allowable to the prior successive transferors
in respect of depreciation in relation to the property;
are taken to have been amounts allowed or allowable to the transferee in
respect of depreciation in relation to the property.
(CGT roll-over relief applies to motor vehicles)
"(8) For the purposes of this section, in addition to the effect that
sections 160ZZM, 160ZZMA, 160ZZN, 160ZZNA and 160ZZO have apart from this
subsection, those sections also have the effect that they would have if a
reference in those sections to an asset included a reference to a motor
vehicle of a kind mentioned in paragraph 82AF(2)(a).".
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 22
Disposal, loss or destruction of depreciated property
22. Section 59 of the Principal Act is amended:
by omitting from paragraph (4)(a) "the Commissioner is satisfied" and
substituting "it would be concluded";
by omitting from paragraph (4)(b) "and less than the depreciated value
of the property immediately before the time of disposal";
by omitting from subsection (4) "or the depreciated value of the
property immediately before the time of disposal, whichever is the less";
by omitting subsection (4A).
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 23
Disposal of depreciated property on change of ownership or interest
23. Section 59AA of the Principal Act is amended:
by omitting from subsection (1) "Subject to this section, where" and
substituting "If";
by omitting from subsection (1) all the words after "property before
the change" (second occurring) and substituting "(in this section called the
'transferor') had, on the day on which the change occurred, disposed of the
whole of the property to the person, or all the persons, by whom the property
is owned after the change (in this section called the 'transferee')";
by omitting subsection (2) and substituting the following subsections:
"(2) Unless a joint election for roll-over relief is made by both the
transferor and the transferee, the provisions of this Act relating to
depreciation apply as if the consideration for the disposal were equal to the
market value of the property immediately before the time when the change
occurred.
"(2A) If a joint election for roll-over relief is made by both the
transferor and the transferee, section 58 applies to the disposal.
"(2B) A joint election for roll-over relief has no effect unless it:
is in writing; and
is made:
within 6 months after the later of the following:
the end of the year of income of the transferee in
which the disposal occurred;
the commencement of this subsection; or
within such further period as the Commissioner
allows; and
contains such information about the transferor's holding of the
property as will enable the transferee to work out how section 58 will apply
to the transferee's holding of the property.
"(2C) If a person dies before the end of the period allowed for making a
joint election for roll-over relief, the trustee of the deceased person's
estate may be a party to the election on the deceased person's behalf.";
by omitting from subsection (4) "This section" and substituting
"Subsection (2)".
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 24
24. After section 62AAA the following sections are inserted:
Object of pooling of depreciable property
"62AAB. The object of pooling is to provide taxpayers with a simplified
method of quantifying the annual depreciation allowable in respect of 2 or
more units of property which are depreciable at the same rate.
Taxpayer may create pools to which depreciable property may be allocated
"62AAC.(1) A taxpayer may, by written notice:
create a pool to which depreciable property may be allocated; and
specify a year of income as the earliest year of income for which
property may be allocated to the pool; and
specify a percentage as the pool percentage for the pool.
"(2) A notice under subsection (1) is irrevocable and must be made:
within 6 months after the later of the following:
the end of the specified year of income;
the commencement of this section; or
within such further period as the Commissioner allows.
Pool percentage
"62AAD. For the purposes of this Act, the pool percentage for a pool is the
pool percentage specified in the notice creating the pool.
Allocation of property to a pool
"62AAE.(1) A taxpayer may, by written notice, allocate a unit of property to
a specified pool for a specified year of income and for subsequent years of
income if:
depreciation is allowable to the taxpayer under this Act in respect of
the property in relation to the specified year of income; and
at all times during the period:
commencing at the time the taxpayer's ownership of the
property began; and
ending immediately after the beginning of the
specified year of income;
the property was:
used by the taxpayer exclusively for the purpose of
producing assessable income; or
installed ready for exclusive use for that purpose
and held in reserve by the taxpayer; and
the annual depreciation percentage fixed under section 55 for the
property in relation to the specified year of income equals the pool
percentage for the pool; and
the taxpayer has not allocated the property to any other pool for the
specified year of income or a subsequent year of income; and
each amount of depreciation allowed or allowable to the taxpayer in
respect of the property in relation to a year of income earlier than the
specified year of income was calculated in accordance with subsection 56(1) or
section 62AAP; and
apart from that allocation, the depreciation allowable to the taxpayer
in respect of the property in relation to the specified year of income would
have been calculated in accordance with subsection 56(1); and
the specified year of income is not earlier than the earliest year of
income for which property may be allocated to the pool.
"(2) A notice under subsection (1) is irrevocable and must be made:
within 6 months after the later of the following:
the end of the specified year of income;
the commencement of this section; or
within such further period as the Commissioner allows.
Cancellation of allocation to pool - taxpayer's notice
"62AAF.(1) A taxpayer may, by written notice, cancel the allocation of
specified property to a pool insofar as the allocation applies for a specified
year of income and for subsequent years of income.
"(2) A notice under subsection (1) is irrevocable and must be made:
within 6 months after the later of the following:
the end of the specified year of income;
the commencement of this section; or
within such further period as the Commissioner allows.
"(3) If, under this section, a taxpayer cancels the allocation of property
to a pool for a year of income, this Act does not prevent the taxpayer from
re-allocating the property to the pool for the year of income in accordance
with section 62AAE.
Cancellation of allocation to pool - cessation of exclusive assessable
income-producing use
"62AAG.(1) If:
property is allocated by a taxpayer to a pool for a year of income; and
during the year of income, the taxpayer ceased to use the property
exclusively for assessable income-producing purposes; and
that cessation was not by way of the disposal, loss or destruction of
the property;
the allocation is cancelled insofar as it applies for that year of income and
for subsequent years of income.
"(2) For the purposes of this section, a unit of property is taken to be
used for assessable income-producing purposes by a taxpayer if, and only if,
the property is:
used by the taxpayer for the purpose of producing assessable income; or
installed ready for use for that purpose and held in reserve by the
taxpayer.
Cancellation of allocation to pool - annual depreciation percentage not equal
to pool percentage
"62AAH. If:
property is allocated by a taxpayer to a pool for a year of income;
and
the annual depreciation percentage fixed under section 55 for the
property in relation to the year of income does not equal the pool percentage
for the pool;
the allocation is cancelled insofar as it applies for that year of income and
for subsequent years of income.
Cancellation of allocation to pool - subsequent application of special
depreciation provisions
"62AAJ. If:
property is allocated by a taxpayer to a pool for a year of income;
and
apart from that allocation, the depreciation allowable to the taxpayer
in respect of the property in relation to the year of income would have been
calculated otherwise than in accordance with subsection 56(1);
the allocation is cancelled insofar as it applies for that year of income and
for subsequent years of income.
Cancellation of allocation to pool - disposal to which section 58 applies
"62AAK. If:
property is allocated by a taxpayer to a pool for a year of income; and
the property is disposed of during the year of income; and
section 58 applies to that disposal;
the allocation is cancelled insofar as it applies for that year of income and
for subsequent years of income.
Effect of cancellation of allocation to pool
"62AAL. If the allocation of property to a pool for a year of income is
cancelled, the property is taken never to have been allocated to the pool for
the year of income.
Reconstruction assumptions and reconstructed depreciated value
"62AAM.(1) If property is allocated by a taxpayer to a pool for a year of
income, the reconstruction assumptions applicable to the property for the year
of income are as follows:
the assumption that the property had not been allocated to the pool for
the year of income;
the assumption that the depreciation allowable to the taxpayer in
relation to the year of income in respect of the property had been calculated
in accordance with paragraph 56(1)(a);
the assumption that the percentage specified in that paragraph was
equal to the pool percentage for the pool.
"(2) The reconstructed depreciated value of property allocated to a pool for
a year of income is the amount that would have been the depreciated value of
the property if the reconstruction assumptions had applied to the property for
each year of income for which the property was allocated to the pool.
Opening balance of pool
"62AAN. The opening balance of a pool for a year of income (in this section
called the 'current year of income') is calculated using the formula:
+ Depreciated value - Reconstructed
of new property depreciated value
of cancelled property
where:
'Closing balance for preceding year' means the closing balance of the pool
for the preceding year of income;
'Depreciated value of new property' means the amount obtained by:
identifying each unit of property allocated to the pool for the current
year of income where the current year of income is the first year of income
for which the allocation applies; and
calculating the depreciated value, as at the beginning of the current
year of income, of each such unit of property; and
adding up those depreciated values;
'Reconstructed depreciated value of cancelled property' means the amount
obtained by:
identifying each unit of property allocated to the pool for the
preceding year of income where the allocation of the property to the pool for
the current year of income is cancelled; and
calculating the reconstructed depreciated value, as at the beginning of
the current year of income, of each such unit of property; and
adding up those reconstructed depreciated values.
Closing balance of pool
"62AAO. The closing balance of a pool for a year of income is worked out
using the formula:
Opening balance - Total depreciation
where:
'Opening balance' means the opening balance of the pool for the year of
income;
'Total depreciation' means the total depreciation allowable to the taxpayer
under this Act in relation to the year of income in respect of all the units
of property allocated to the pool for the year of income.
Calculation of depreciation - pooled property
"62AAP.(1) The total depreciation allowable to a taxpayer under this Act in
relation to a year of income in respect of all the units of property allocated
to a pool for the year of income is worked out using the formula:
1.5 x Pool percentage x Opening balance
where:
'Pool percentage' means the pool percentage for the pool;
'Opening balance' means the opening balance of the pool for the year of
income.
"(2) This section applies in spite of section 56.
Cancellation of allocation of property to a pool - effect on subsequent
operation of depreciation provisions
"62AAQ. If the allocation of a unit of property to a pool is cancelled, the
provisions of this Act relating to depreciation apply, in relation to each
year of income to which the cancellation applies and any subsequent year of
income, as if the reconstruction assumptions had applied for each year of
income for which the property was allocated to the pool.
Cancellation of allocation of property to pool - taxpayer must use diminishing
value method to calculate subsequent depreciation
"62AAR. If:
the allocation of a unit of property to a pool for a year of income (in
this section called the 'current year of income') is cancelled; and
the property is allocated to the pool for the preceding year of income;
then, in calculating the depreciation (if any) allowable to the taxpayer in
respect of the property in accordance with subsection 56(1) for the current
year of income or a subsequent year of income, this Act has effect as if
paragraph 56(1)(b) had not been enacted.
No balancing charges/deductions while property allocated to pool
"62AAS. If property is allocated to a pool for a year of income, subsections
59(1) and (2) do not apply to the disposal, loss or destruction of the
property during the year of income.
Taxpayer's assessable income to include proceeds of disposal of pooled
property etc.
"62AAT.(1) If:
property is allocated by a taxpayer to a pool for a year of income; and
the property is disposed of, lost or destroyed during the year of income;
then:
an amount equal to so much of the consideration receivable in respect
of the disposal, loss or destruction (within the meaning of section 59) as
does not exceed the cost of the property is included in the taxpayer's
assessable income of the year of income; and
the disposal, loss or destruction does not affect the allocation of the
property to the pool for a subsequent year of income; and
so long as the property remains allocated to the pool for a subsequent
year of income, section 62AAP applies to the subsequent year of income as if
depreciation were allowable to the taxpayer under this Act in relation to the
subsequent year of income in respect of the property.
"(2) Subsections 59(2A) to (2E) (inclusive) apply to the taxpayer and in
relation to the property as if a reference in each of those subsections to
subsection 59(2) included a reference to subsection (1) of this section.
"(3) If:
property owned by a taxpayer is disposed of to another person; and
an amount (in this subsection called the 'assessable amount'):
is included in the taxpayer's assessable income under
subsection (1) of this section in respect of the disposal; or
would, apart from subsection 59(2A) or (2D), be
included in the taxpayer's assessable income under subsection (1) of this
section in respect of the disposal; and
section 60 applies to the acquisition of the property by the other
person;
then:
in spite of anything in subsection 60(1), the person acquiring the
property is to be allowed depreciation calculated on the assessable amount; and
in spite of anything in subsection 62(2), for the purposes of
subsection 62(1), the person acquiring the property is taken to have acquired
the property at a cost equal to the assessable amount.
Disposal of pooled property - application of CGT provisions
"62AAU. If:
property is allocated by a taxpayer to a pool for a year of income (in
this section called the 'current year of income'); and
the property is disposed of (within the meaning of Part IIIA);
section 160ZK applies to the disposal of the property as if the reconstruction
assumptions had applied for each year of income for which the property was
allocated to the pool.
may use their own form of words in pool notices
"62AAV. If:
subsection 62AAC(1), 62AAE(1) or 62AAF(1) expresses an idea in a
particular form of words; and
a notice made by a taxpayer under the subsection concerned appears to
have expressed the same idea in a different form of words for the purpose of
convenience; the ideas are not taken to be different merely because different
forms of words were used.".
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 25
Deductions for debt dividends
25. Section 67AA of the Principal Act is amended by adding at the end the
following subsection:
"(3) Section 45Z applies for the purposes of this section in a corresponding
way to the way in which it applies for the purposes of sections 46, 46A and
46C.".
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 26
Expenditure on scientific research
26.(1) Section 73A of the Principal Act is amended by inserting after
subsection (4) the following subsection:
"(4A) If:
a person has purchased from another person a building, or part of a
building, where the vendor had incurred capital expenditure of a kind in
respect of which deductions are or have been allowable under subsection (2);
and
it would be concluded that, having regard to any connection between the
vendor and the purchaser or to any other relevant circumstances, those persons
were not dealing with each other at arm's length; and
the purchase price is greater or lesser than the market value of the
building, or the part of the building, at the time of the purchase;
the purchase price is, for all purposes of the application of this Act in
relation to the vendor, taken to have been the amount of the market value of
the property at the time of the purchase.".
(2) Section 73A of the Principal Act is amended:
by omitting subsection (5);
by omitting from subsection (9) all the words after "30 June 1995".
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 27
27. After section 73A of the Principal Act the following section is
inserted:
Section 73A roll-over relief where CGT roll-over relief allowed under section
160ZZM, 160ZZMA, 160ZZN, 160ZZNA or 160ZZO
(Roll-over relief where CGT roll-over relief allowed)
"73AA.(1) This section applies to the disposal of a building, or part of a
building, by a taxpayer (in this section called the 'transferor') to another
taxpayer (in this section called the 'transferee') if:
either:
in a case where the transferor is not a partnership -
section 160ZZM, 160ZZMA, 160ZZN or 160ZZO applies to the disposal of the
building or the part of the building by the transferor; or
if the transferor is a partnership - the building or
the part of the building is partnership property of the partnership and
section 160ZZNA applies to the corresponding disposal, by all of the partners
in the partnership, of their interests in the building or the part of the
building; and
deductions have been allowed or are allowable under subsection 73A(2)
to the transferor in respect of the building or the part of the building.
(No balancing charges)
"(2) Subsection 73A(4) (which deals with balancing charges) does not apply
to the disposal of the building or the part of the building by the
transferor.
(Transferee to inherit certain characteristics from transferor)
"(3) Section 73A applies as if:
the transferee had acquired the building or the part of the building
for a consideration equal to the cost of the building or the part of the
building to the transferor; and
deductions were not allowable to the transferee under subsection 73A(2)
in respect of:
so much of the cost of the building or the part of the
building to the transferor as was allowed or allowable as a deduction to the
transferor under that subsection in respect of the building or the part of the
building; or
if there have been 2 or more prior successive
applications of this section - so much of the cost of the building or the part
of the building to the transferor as was allowed or allowable as a deduction
to the prior successive transferors under that subsection in respect of the
building or the part of the building; and
deductions were not allowable to the transferor under subsection 73A(2)
in respect of the building or the part of the building for the year of income
in which the disposal took place or for a subsequent year of income.
(Subsection 73A(2A) - special rules)
"(4) If subsection 73A(2A) applies to the transferor and in relation to the
building or the part of the building, that subsection applies in relation to
the transferee and in relation to the building or the part of the building.
(Disposal by transferee where no roll-over relief - inheritance of deductions)
"(5) If:
after the disposal of the building or the part of the building to the
transferee, the building or the part of the building is lost or destroyed or
the transferee disposes of the building or the part of the building; and
in the case of a disposal by the transferee - this section does not
apply to the disposal;
then, for the purposes of the application of subsection 73A(4) in relation to
the loss, destruction or disposal, the total of:
the deductions allowed or allowable to the transferor under subsection
73A(2) in relation to the building or the part of the building; and
if there have been 2 or more prior successive applications of this
section - the deductions allowed or allowable to the prior successive
transferors under subsection 73A(2) in relation to the building or the part of
the building;
are taken to have been deductions allowed or allowable to the transferee under
subsection 73A(2) in relation to the building or the part of the building.
(Meaning of 'cost')
"(6) A reference in this section to the cost of a building or of a part of a
building to the transferor is a reference to expenditure of a capital nature
incurred by the transferor in the construction or acquisition of the building
or the part of the building, or in making any alteration or addition to the
building or to the part of the building.".
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 28
Expenditure on research and development activities
28. Section 73B of the Principal Act is amended:
(a) by inserting after subsection (15A) the following subsection:
"(15B) For the purposes of the application of paragraphs (15)(a), (23)(e)
and (24)(e), if the eligible company commences to use the unit of plant
exclusively for the purpose of the carrying on by or on behalf of it of
research and development activities during the year of income ending on 30
June 1993 or an earlier year of income, the definition of 'deduction
acceleration factor' in subsection (1) is to be read as if:
the words '(a) in the case of the year of income ending on 30 June 1993
or an earlier year of income:' were omitted from the definition; and
the word 'or' before paragraph (b) of the definition and that paragraph
were omitted from the definition.";
(b) by inserting in paragraph (31)(a) "an amount of core technology
expenditure," after "research and development expenditure,".
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 29
Guaranteed returns to investors
29. Section 73CA of the Principal Act is amended by adding at the end of
subsection (6) the following definition:
" 'expenditure' does not include core technology expenditure.".
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 30
Losses to be allowable deductions
30. Section 82Z of the Principal Act is amended:
by omitting from paragraph (3)(a) "primary" and substituting "loss";
by omitting paragraph (3)(b) and substituting the following
paragraphs:
the taxpayer or another person has made a currency exchange gain under
another contract (in this subsection called the 'gain contract'); and
either:
the loss contract would not have been entered into, or
might reasonably be expected not to have been entered into, if the gain
contract had not been entered into; or
the gain contract would not have been entered into,
or might reasonably be expected not to have been entered into, if the loss
contract had not been entered into;".
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 31
Modified application of Act in relation to certain unit trusts
31.(1) Section 102L of the Principal Act is amended by omitting from
subsection (2) "and 46E" and substituting ", 46E and 46F".
(2) Section 102L of the Principal Act is amended by inserting in subsection
(2) "45Z," before "46" (first occurring).
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 32
Modified application of Act in relation to certain unit trusts
32.(1) Section 102T of the Principal Act is amended by omitting from
subsection (2) "and 46E" and substituting ", 46E and 46F".
(2) Section 102T of the Principal Act is amended by inserting in subsection
(2) "45Z," before "46" (first occurring).
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 33
Effect of Division on rebate under section 46 or 46A
33. Section 116J of the Principal Act is amended by adding at the end the
following subsection:
"(2) Section 45Z applies for the purposes of this section in a corresponding
way to the way in which it applies for the purposes of sections 46 and 46A.".
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 34
34. After section 122JA of the Principal Act the following section is
inserted:
Roll-over relief where CGT roll-over relief allowed under section 160ZZM,
160ZZMA, 160ZZN, 160ZZNO or 160ZZO or where election for roll-over relief made
under section 122R
(Roll-over relief where CGT roll-over relief allowed)
"122JAA.(1) This section applies to the disposal of property by a taxpayer
(in this section called the 'transferor') to another taxpayer (in this section
called the 'transferee') if:
either:
in a case where the transferor is not a partnership -
section 160ZZM, 160ZZMA, 160ZZN or 160ZZO applies to the disposal of the
property by the transferor; or
if the transferor is a partnership - the property is
partnership property of the partnership and section 160ZZNA applies to the
corresponding disposal, by all of the partners in the partnership, of their
interests in the property; and
deductions have been allowed or are allowable under this Subdivision to
the transferor in respect of the property.
(Roll-over relief where joint election made under section 122R)
"(2) This section also applies if a joint election for roll-over relief is
made under subsection 122R(2) by both the transferor and the transferee
referred to in that subsection in relation to the disposal of property.
(No balancing charges or deductions)
"(3) Section 122K (which deals with balancing charges and deductions) does
not apply to the disposal of the property by the transferor.
(Transferee to inherit certain characteristics from transferor)
"(4) This Subdivision and Subdivision C (to the extent to which it relates
to this Subdivision) apply as if:
if any part of the expenditure of the transferor in respect of the
property is allowable capital expenditure of the transferor - the transferee
had acquired the property for a consideration equal to the amount worked out
using the formula:
- Transferor's deductions + Undeducted excess
amounts
where:
'Transferor's expenditure' means so much of the total expenditure of a
capital nature of the transferor in respect of the property as is allowable
capital expenditure of the transferor;
'Transferor's deductions' means the sum of the deductions allowed or
allowable to the transferor under this Subdivision in respect of so much of
the expenditure of a capital nature of the transferor in respect of the
property as is allowable capital expenditure of the transferor;
'Undeducted excess amounts' means the sum of the excess amounts referred to
in subsection (5) in respect of the property; and
if no part of the expenditure of the transferor in respect of the
property is allowable capital expenditure of the transferor - the transferee
had acquired the property for nil consideration; and
if the property is a mining or prospecting right or mining or
prospecting information:
a notice under section 122B in respect of the
acquisition of the property had been given to the Commissioner by the
transferor and the transferee; and
the amount specified in the notice were the amount
worked out under paragraph (a) of this subsection; and
subsections 122B(2), 122DG(9) and 122J(5) were not
applicable to that notice; and
if the property is not a mining or prospecting right or mining or
prospecting information - subsection 122DG(8) were not applicable to the
disposal of the property; and
the reference in paragraph 122DG(3)(a) to a year of income in respect
of which a deduction has been allowed or is allowable, or, apart from the
operation of subsection 122DG(6), would have been allowed or would be
allowable, in respect of an amount of allowable capital expenditure of the
transferee in respect of the property included a reference to a year of income
in respect of which a deduction has been allowed or is allowable, or, apart
the amended Act has effect as if the annual depreciation percentage applicable
to the property under section 55 of that Act in relation to that year of
income were equal to the percentage that would have been the annual
depreciation per centum fixed under the repealed section 55 of the Principal
Act if:
sections 55 and 57AG of the Principal Act had not been repealed; and
subsection 73A(5) of the Principal Act had not been repealed.
(Taxpayers with substituted accounting periods and post-12 March 1991
property: pre-1991-92 years)
(9) If:
a taxpayer's 1 July 1991 year of income is earlier than the 1991-92
year of income; and
the taxpayer's property is post-12 March 1991 property; and
any part of the taxpayer's recognised holding period occurred before 1
July 1991;
section 55 of the amended Act has the effect in relation to the property and
in relation to that year of income that it would have if subsections (5), (6),
(7) and (8) of that section were omitted and the following subsection were
substituted:
If none of steps 2, 2A and 3
apply, the annual depreciation percentage is calculated using the following
formula:
Post-
1 July
1991
x Loaded old + days x Loaded
depreciation Days in raw
percentage recognised percentage
holding
period
where:
'Pre-1 July 1991 days' means the number of days in the taxpayer's'Days in
recognised holding period' means the the number of days in the taxpayer's
recognised holding period;
'Loaded old depreciation percentage' means the annual depreciation per
centum fixed under the repealed subsection 55(1) in relation to the property,
as increased by any notional application of the repealed section 57AG;
'Post-1 July 1991 days' means the number of days in the taxpayer's'Loaded
raw percentage' means:
if the repealed section 57AG would have been applicable to the property
if it had not been repealed - the raw percentage applicable to the property,
as increased by any notional application of that section; or
in any other case - the raw percentage applicable to the property.".
(Application of pooling amendments: 1991-92 year of income and subsequent
years)
(10) Section 62AAE of the amended Act does not apply to allocations for
years of income earlier than the 1991-92 year of income.
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 65
Application of tax file number amendments
(Meaning of "amended Act")
65.(1) In this section:
"amended Act" means the Principal Act as amended by this Act.
(Meaning of "person")
(2) For the purposes of subsections (4) and (5), a reference to a person is
a reference to a person who, if subsection 221YHZA(4) of the amended Act had
commenced on 1 July 1991, would have been an investment body for the purposes
of Division 3B of Part VI of the Principal Act.
(Entrepot nominee companies)
(3) The amendments made by paragraphs 52(a) and (c) apply to a right to
receive income accruing on or after 1 July 1991.
(Certain persons taken to be investment bodies)
(4) Subject to subsection (5), subsection 221YHZA(4) of the amended Act
applies to a person as if the subsection had commenced on 1 July 1991 and
anything done by the person in the capacity of an investment body before the
commencement of this Act has the same effect, and the rights and liabilities
of persons are the same, as if the subsection had so commenced.
(Circumstances in which persons taken not to be investment bodies)
(5) Subsection 221YHZA(4) of the amended Act does not apply to a person
where such application would give rise to an offence under subsection
221YHZC(1A) of the amended Act in respect of a payment of income, made before
the commencement of this Act, relating to an investment of the kind mentioned
in item 5 in the table referred to in subsection 221YHZA(4) of the amended
Act.
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 66
Transitional - intercorporate dividend rebate amendments
66.(1) If a notice of an assessment of a taxpayer's taxable income of a year
of income was served on the taxpayer before 19 December 1991:
the taxpayer is not entitled to object against the assessment on the
grounds that the assessment does not give effect to the amendments made by any
or all of sections 10, 13 and 25, subsections 31(2) and 32(2) and sections 33
and 49; and
the assessment must not be amended for the purpose of giving effect to
those amendments.
(2) This section has effect in spite of anything in this Act, in the
Taxation Administration Act 1953, or in section 170 of the Principal Act.
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 67
Transitional - section 55 of the amended Act
67. Section 55 of the Principal Act as amended by this Act has the effect
that it would have if the following word and paragraph were inserted after
paragraph (6)(c):
a deduction has not been allowed, and is not allowable, to the
taxpayer in relation to any year of income in respect of the property in
accordance with repealed section 57AE, 57AH or 57AL (as those sections
continue to apply in spite of their repeal by the Taxation Laws Amendment Act
(No. 4) 1988);".
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 68
Transitional - repealed paragraph 56(1)(b) of the Principal Act
68. Paragraph 56(1)(b) of the Income Tax Assessment Act 1936 (as that
paragraph continues to apply in spite of its repeal by the Taxation Laws
Amendment Act (No. 4) 1988) has effect, in relation to the year of income in
which 1 July 1991 occurred or a subsequent year of income, as if the reference
to the percentage fixed by or under section 55 of the Principal Act were a
reference to the annual depreciation percentage fixed under section 55 of the
Principal Act as amended by this Act.
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 69
Transitional - repealed section 57AH of the Principal Act
69. Section 57AH of the Income Tax Assessment Act 1936 (as that section
continues to apply in spite of its repeal by the Taxation Laws Amendment Act
(No. 4) 1988) has the effect that it would have if:
a reference to subsection 55(2) were a reference to that subsection as
in force immediately before its repeal by this Act; and
a reference to subsection 73A(5) were a reference to that subsection as
in force immediately before its repeal by this Act.
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 70
Transitional - repealed section 57AL of the Principal Act
70. Section 57AL of the Income Tax Assessment Act 1936 (as that section
continues to apply in spite of its repeal by the Taxation Laws Amendment Act
(No. 4) 1988) has the effect that it would have if a reference to section 55
were a reference to section 55 as in force immediately before its repeal by
this Act.
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 71
Transitional - section 58 of the amended Act
(This section applies if section 58 of the amended Act applies)
71.(1) If section 58 of the Principal Act as amended by this Act (in this
section called the "roll-over section") applies to the disposal of a unit of
property by the transferor to the transferee referred to in that section, the
following provisions have effect.
(Repealed section 57AG: special rules)
(2) If the repealed section 57AG of the Principal Act (which dealt with
special depreciation loadings) (as that section continues to apply in spite of
its repeal by this Act) applied to the transferor in relation to the property,
then, that section has effect, in relation to the transferee and in relation
to the property, as if:
the conditions set out in repealed subsection 57AG(2) of the Principal
Act that were satisfied in relation to the transferor were satisfied in
relation to the transferee; and
the conditions set out in whichever of repealed paragraphs 57AG(3)(a)
and (b) of the Principal Act that were satisfied in relation to the transferor
were satisfied in relation to the transferee.
(Pre-1988 property: modified roll-over rules)
(3) If the amendments covered by subsection 54(7) of the Taxation Laws
Amendment Act (No. 4) 1988 did not apply to the transferor in relation to the
property:
those amendments are taken not to have applied to the transferee in
relation to the property; and
paragraphs (4)(a) and (b) of the roll-over section do not apply in
relation to the disposal of the property; and
if the depreciation allowable to the transferor in respect of the
property for the year of income in which the disposal occurred was calculated
in accordance with paragraph 56(1)(a) of the Principal Act - the provisions of
the Income Tax Assessment Act 1936 relating to depreciation apply as if:
the transferee were not entitled to exercise an option
in accordance with repealed section 56A of the Principal Act; and
the transferee had acquired the unit of property for
a consideration equal to the depreciated value of the property immediately
before the time of disposal (worked out on the assumption that subsection
60(2) of the Principal Act had not been enacted); and
if:
the depreciation allowable to the transferor in
respect of the property for the year of income in which the disposal occurred
was calculated in accordance with repealed paragraph 56(1)(b) of the Principal
Act; or
both:
the depreciation allowable to the transferor in
respect of the property for the year of income in which the disposal occurred
was calculated in accordance with repealed section 57AK or 57AM or repealed
section 57AE, 57AH or 57AL of the Principal Act (as those sections continue to
apply in spite of their repeal by the Taxation Laws Amendment Act (No. 4)
1988); and
none of the provisions referred to in sub-subparagraph
(A) apply to the transferee in respect of the property;
then, the provisions of the Income Tax Assessment Act 1936 relating to
depreciation apply as if:
the transferee had exercised the option referred to
in that paragraph in relation to the property; and
the transferee were not entitled to exercise the
further option referred to in repealed section 56A of the Principal Act; and
the transferee had acquired the unit of property for a
consideration equal to the cost of the unit to the transferor; and
depreciation were not allowable to the transferee in
respect of:
so much of the cost of the property as was allowed
or allowable to the transferor in respect of depreciation in relation to the
property (worked out as if section 61 had not been enacted); or
if there have been 2 or more successive applications
of the roll-over section - so much of the cost of the property as was allowed
or allowable to the prior successive transferors in respect of depreciation in
relation to the property (worked out as if section 61 had not been enacted);
and
the depreciated value of the property at a time when
the property was owned by the transferee were worked out as if the total of:
the amounts allowed or allowable to the transferor
in respect of depreciation in relation to the property; and
if there have been 2 or more prior successive
applications of this section - the amounts allowed or allowable to the prior
successive transferors in respect of depreciation in relation to the
property;
were taken to have been amounts allowed or allowable to the transferee in
respect of depreciation in relation to the property; and
the Commissioner must not grant leave to the transferee in relation to
the property under repealed section 57 of the Principal Act (as that section
continues to apply in spite of its repeal by the Taxation Laws Amendment Act
(No. 4) 1988).
(Repealed section 57AE: special rules)
(4) If the repealed section 57AE of the Principal Act (which dealt with
storage of grain, hay or fodder) (as that section continues to apply in spite
of its repeal by the Taxation Laws Amendment Act (No. 4) 1988) applied to the
transferor in relation to the property in relation to the year of income in
which the time of the disposal occurred, then:
repealed section 57AE has effect, in relation to the transferee and in
relation to the property, as if:
(i) the condition set out in repealed paragraph
57AE(1)(d) of the Principal Act that was satisfied in relation to the
transferor was satisfied in relation to the transferee; and
the conditions set out in whichever of repealed
subparagraphs 57AE(2)(a)(i) and (ii) of the Principal Act that were satisfied
in relation to the transferor were satisfied in relation to the transferee; and
if the repealed section 57AE of the Principal Act applies to the
transferee - the provisions of the Income Tax Assessment Act 1936 relating to
depreciation apply as if:
the transferee had acquired the unit of property for a
consideration equal to the cost of the unit to the transferor; and
depreciation were not allowable to the transferee in
respect of:
so much of the cost of the property as was allowed
or allowable to the transferor in respect of depreciation in relation to the
property; or
if there have been 2 or more prior successive
applications of the roll-over section - so much of the cost of the property as
was allowed or allowable to the prior successive transferors in respect of
depreciation in relation to the property; and
the depreciated value of the property at a time when
the property was owned by the transferee were worked out as if the total of:
the amounts allowed or allowable to the transferor
in respect of depreciation in relation to the property; and
if there have been 2 or more prior successive
applications of this section - the amounts allowed or allowable to the prior
successive transferors in respect of depreciation in relation to the
property;
were taken to have been amounts allowed or allowable to the transferee in
respect of depreciation in relation to the property.
(Repealed section 57AH: special rules)
(5) If the repealed section 57AH of the Principal Act (which dealt with
primary production) (as that section continues to apply in spite of its repeal
by the Taxation Laws Amendment Act (No. 4) 1988) applied to the transferor in
relation to the property in relation to the year of income in which the time
of the disposal occurred, then:
section 57AH has effect, in relation to the transferee and in relation
to the property, as if:
(i) the conditions set out in repealed paragraphs
57AH(1)(c) and (d) of the Principal Act that were satisfied in relation to the
transferor were satisfied in relation to the transferee; and
the conditions set out in whichever of repealed
subparagraphs 57AH(3)(a)(i) and (ii) of the Principal Act that were satisfied
in relation to the transferor were satisfied in relation to the transferee; and
if the repealed section 57AH of the Principal Act applies to the
transferee - the provisions of the Income Tax Assessment Act 1936 relating to
depreciation apply as if:
the transferee had acquired the unit of property for a
consideration equal to the cost of the unit to the transferor; and
depreciation were not allowable to the transferee in
respect of:
so much of the cost of the property as was allowed
or allowable to the transferor in respect of depreciation in relation to the
property; or
if there have been 2 or more prior successive
applications of the roll-over section - so much of the cost of the property as
was allowed or allowable to the prior successive transferors in respect of
depreciation in relation to the property; and
the depreciated value of the property at a time when
the property was owned by the transferee were worked out as if the total of:
the amounts allowed or allowable to the transferor
in respect of depreciation in relation to the property; and
if there have been 2 or more prior successive
applications of this section - the amounts allowed or allowable to the prior
successive transferors in respect of depreciation in relation to the property;
were taken to have been amounts allowed or allowable to the transferee in
respect of depreciation in relation to the property.
(Repealed section 57AL: special rules)
(6) If the repealed section 57AL of the Principal Act (which dealt with 5/3
depreciation) (as that section continues to apply in spite of its repeal by
the Taxation Laws Amendment Act (No. 4) 1988) applied to the transferor in
relation to the property in relation to the year of income in which the time
of the disposal occurred, then:
repealed section 57AL has effect, in relation to the transferee and in
relation to the property, as if:
the condition set out in repealed paragraph 57AL(1)(b)
of the Principal Act that was satisfied in relation to the transferor was
satisfied in relation to the transferee; and
repealed subsection 57AL(7) of the Principal Act had
not been enacted; and
if the repealed section 57AL of the Principal Act applies to the
transferee in relation to the property - the provisions of the Income Tax
Assessment Act 1936 relating to depreciation apply as if:
the transferee had acquired the unit of property for a
consideration equal to the cost of the unit to the transferor; and
depreciation were not allowable to the transferee in
respect of:
so much of the cost of the property as was allowed
or allowable to the transferor in respect of depreciation in relation to the
property (worked out as if section 61 of the Principal Act had not been
enacted); or
if there have been 2 or more prior successive
applications of the roll-over section - so much of the cost of the property as
was allowed or allowable to the prior successive transferors in respect of
depreciation in relation to the property (worked out as if section 61 of the
Principal Act had not been enacted); and
the depreciated value of the property at a time when
the property was owned by the transferee were worked out as if the total of:
the amounts allowed or allowable to the transferor
in respect of depreciation in relation to the property; and
if there have been 2 or more prior successive
applications of this section - the amounts allowed or allowable to the prior
successive transferors in respect of depreciation in relation to the
property;
were taken to have been amounts allowed or allowable to the transferee in
respect of depreciation in relation to the property.
(Scientific research etc.)
(7) Subsection (4) of the roll-over section has effect, in relation to a
year of income earlier than the year of income in which 1 July 1991 occurred,
as if:
paragraph (4)(c) were omitted; and
the reference in paragraph (4)(d) of the roll-over section to step 2A
in section 55 of the Principal Act as amended by this Act were a reference to
subsection 73A(5) of the Principal Act.
(Pre-13 March 1991 property)
(8) For the purposes of subsections 64(5) and (8) of this Act, if the
property was pre-13 March 1991 property of the transferor, the property is
taken to be pre-13 March 1991 property of the transferee.
(Post-12 March 1991 property)
(9) For the purposes of subsections 64(6) and (9) of this Act, if the
property was post-12 March 1991 property of the transferor, the property is
taken to be post-12 March 1991 property of the transferee.
(100% depreciation)
(10) If subsection 64(7) of this Act (which deals with pre-1 July 1991
property) applied to the transferor in relation to the property, that
subsection applies to the transferee in relation to the property.
(Old depreciation percentage)
(11) For the purposes of the application to the transferee of the provisions
of the Income Tax Assessment Act 1936 relating to depreciation, the annual
percentage fixed under repealed section 55 of the Principal Act (as that
section continues to apply in spite of its repeal by this Act) in relation to
the transferee in respect of the property is taken to be equal to the annual
percentage fixed under that section in relation to the transferor in respect
of the property.
(Record-keeping etc.)
(12) A reference in section 59AA or 262A of the Principal Act as amended by
this Act to section 58 of that Act includes a reference to this section.
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 72
Transitional - elective capital deduction roll-over relief where CGT roll-over
relief available under section 160ZZO of the Principal Act and property
disposed of after 6 December 1990
(Definitions)
72.(1) In this section:
"amended Act" means the Principal Act as amended by this Act;
"roll-over section" means section 58, 73AA, 122JAA, 122JG, 123BBA, 123BF,
124AMAA, 124GA, 124JD or 124PA of the amended Act.
(Extended application of roll-over sections)
(2) If:
a taxpayer (in this section called the "transferor") disposed of
property to another taxpayer (in this section called the "transferee"); and
the disposal took place after 6 December 1990 and before 20 December
1991; and
the transferor and the transferee make a joint election that this
section apply to the disposal; and
assuming that both the transferor and the transferee had elected under
paragraph 160ZZO(1)(d) of the Principal Act that section 160ZZO of the
Principal Act apply in respect of the disposal of the property:
section 160ZZO of the Principal Act would have applied
to the disposal of the property; and
if the disposal had taken place after 19 December
1991, a roll-over section would have applied to the disposal of the property;
then, in addition to the application of the roll-over section concerned apart
from this section, the roll-over section applies to the disposal.
(How joint election made)
(3) A joint election under subsection (2) has no effect unless it:
is in writing; and
is made:
within 6 months after the later of the following:
the end of the year of income of the transferee in
which the disposal occurred;
the commencement of this subsection; or
within such further period as the Commissioner
allows.
(Retention of joint election)
(4) A person who is a party to a joint election under subsection (2) must
retain the election, or a copy, until the end of 5 years after the earlier of:
the disposal by the person of the property; or
the loss or destruction of the property.
Penalty: $3,000.
(Exceptions to retention rules)
(5) Subsection (4) does not require a person to retain an election, or a
copy, if:
the Commissioner has notified the person that retention of the election
or copy is not required; or
the person is a company that has gone into liquidation and has been
finally dissolved.
(Extension of roll-over relief to motor vehicles)
(6) For the purposes of this section, in addition to the effect that section
160ZZO of the Principal Act has apart from this subsection, that section also
has the effect that it would have if a reference in that section to an asset
included a reference to a motor vehicle of a kind mentioned in paragraph
82AF(2)(a) of the Principal Act.
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 73
Transitional - section 160AFE of the Principal Act
73. Subsection 160AFE(1C) of the Principal Act applies, and is taken to have
applied, if, and only if, the original year of income referred to in that
subsection was the 1990-91 year of income or a subsequent year of income.
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 74
Transitional - Part X record-keeping offences
74. In determining whether a person has committed an offence against
Division 11 of Part X of the Principal Act before the commencement of this
section, the amendments made by sections 59 to 62 (inclusive) are to be
disregarded.
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 76
Principal Act
76. In this Part, "Principal Act" means the Income Tax (International
Agreements) Act 1953.*3*
No. 82, 1953, as amended. For previous amendments, see No. 25, 1958; No.
88, 1959; Nos. 19 and 29, 1960; No. 71, 1963; No. 112, 1964; No. 105, 1965;
No. 17, 1966; Nos. 39 and 86, 1967; No. 3, 1968; No. 24, 1969; No. 48, 1972;
Nos. 11 and 216, 1973; No. 129, 1974; No. 119, 1975; Nos. 52, 55 and 143,
1976; No. 134, 1977; No. 87, 1978; Nos. 23 and 127, 1980; Nos. 28, 110, 143
and 154, 1981; Nos. 51 and 57, 1983; Nos. 123 and 125, 1984; Nos. 168 and 173,
1985; Nos. 49, 51 and 112, 1986; No. 165, 1989; No. 121, 1990; and Nos. 5 and
96, 1991.
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 77
Schedule 32
77. Schedule 32 to the Principal Act is amended by inserting in paragraph
(1)(a) of Article 14 "other" before "Contracting State".
TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992
- SECT 78
Application of amendment
78. The amendment made by this Part applies to assessments in respect of
income of:
the first year of income to which the Fijian agreement applied; and
all subsequent years of income.
The
Act No. 35, 1992 amended as indicated in the Tables below.
For all relevant information pertaining to application, saving or transitional provisions
Act | Number and year | Date of Assent | Date of commencement | Application, saving or transitional provisions |
35, 1992 | 25 May 1992 | 25 May 1992 | ||
98, 1992 | 30 June 1992 | Ss. 103 and 104: Royal Assent | S. 104 | |
75, 2010 | 28 June 2010 | Schedule 6 (item 28): 29 June 2010 | — |
| |
Provision affected | How affected |
S. 71......................................... | am. No. 98, 1992 |
S. 75......................................... | rep. No. 75, 2010 |
Taxation Laws Amendment Act (No. 3) 1992 (No. 98, 1992)
The amendments made by this Part apply in relation to disposals of property, whether occurring before or after the commencement of this section.
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