Taxation Laws Amendment Act (No. 2) 1990 (Cth)
This compilation was prepared on 17 September 2010
taking into account amendments up to Act No. 75 of 2010
The text of any of those amendments not in force
on that date is appended in the Notes section
The operation of amendments that have been incorporated may be
affected by application provisions that are set out in the Notes section
Prepared by the Office of Legislative Drafting and Publishing,
Attorney-General’s Department, Canberra
TABLE OF PROVISIONS
PART 1 – PRELIMINARY
Section
Short title [
Commencement [
PART 2 - AMENDMENT OF THE DEBITS TAX ADMINISTRATION ACT 1982
Principal Act
Interpretation
PART 3 - AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936
Principal Act
Exemptions
Insertion of new section:
Securities lending arrangements
Alternative election in case of disposal, death or compulsory
destruction of live stock
Compensation for death, disposal or compulsory destruction of live stock
10. Gifts, pensions etc.
11. Insertion of new sections:
General domestic losses of post-1989 years of income
Film losses of post-1989 years of income
12. General domestic losses of pre-1990 years of income
13. Film losses of pre-1990 years of income
14. Primary production losses of pre-1990 years of income
15. Repeal of sections 80AB and 80AC and substitution of new sections:
Order in which loss deductions are to be taken into account
Limitations on net exempt income to be taken into account in
respect of loss deductions
16. Heading to Division 10 of Part III
17. Insertion of heading
18. Interpretation
19. Deduction of allowable (post 19 July 1982) capital expenditure
20. Election that Subdivision not apply to plant
21. Exploration and prospecting expenditure
22. Insertion of new Subdivision and heading:
Interpretation
Allowable capital expenditure
Purchase of quarrying or prospecting right or information
Deduction of allowable capital expenditure
Exploration and prospecting expenditure
23. Disposal, loss, destruction or termination of use of property
24. Transactions between persons not at arm's length
25. Deductions not allowable under other provisions
26. Insertion of new section:
Apportionment of expenditure deductible under both Subdivision
A and Subdivision B
27. Re-numbering and re-location of section 122P
28. Change in interests in property
29. Heading to Division 10AAA of Part III
30. Insertion of heading
31. Interpretation
32. Application of Subdivision
33. Insertion of new Subdivision and heading:
Interpretation
Application of Subdivision
Deduction of expenditure
34. Disposal, loss, destruction or termination of use of property
35. Transactions between parties not at arm's length
36. Deductions not allowable under other provisions
37. Insertion of new section:
Apportionment of expenditure deductible under both Subdivision
A and Subdivision B
38. Declarations
39. Deductions for capital expenditure under post 12 January 1983 contracts
40. Repeal of section 160AAA and substitution of new section:
Rebate in respect of certain pensions, benefits etc.
41. Foreign losses of previous years
42. Interpretation
43. Insertion of new section:
160APAA. Arrangements
44. Insertion of new section:
160AQCB. Dividend streaming arrangements
45. Combined class of dividends to be equally franked
46. Interpretation
47. Explanation of terms: investment, investor, investment body
48. Quotation of tax file numbers in connection with investments
49. Repeal of section 202DD and substitution of new section:
Investor excused from quoting tax file number in certain
circumstances
50. Securities dealer to inform the investment body of tax file number
51. Investments held jointly
52. Repeal of sections 202E and 202ED
53. Repeal of section 202EE and substitution of new section:
Non-residents
54. Repeal of section 202EH and substitution of new section:
Declarations under this Division to be retained in certain
circumstances
55. Duties of payers
56. Deductions from dividends and interest
57. Deductions to be forwarded to Commissioner etc.
58. Interpretation
59. Consequential amendments – losses
60. Consequential amendments – quarrying
61. Application of amendments
62. Transitional - Australian Wool Testing Authority
63. Transitional - declarations and notices under section
124ZADA of the Principal Act
64. Transitional - tax concessions for film investments
PART 4 - AMENDMENT OF THE SALES TAX (EXEMPTIONS AND CLASSIFICATIONS)
ACT 1935
66. Principal Act
67. Amendment of First Schedule
68. Application of amendments
SCHEDULE 1
CONSEQUENTIAL AMENDMENTS RELATING TO LOSSES
SCHEDULE 2
CONSEQUENTIAL AMENDMENTS RELATING TO QUARRYING
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990 - LONG TITLE
An Act to amend the law relating to taxation
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 1
Short title [
1. This Act may be cited as the Taxation Laws Amendment Act (No. 2) 1990.
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 2
Commencement [
2. (1) Subject to this section, this Act commences on the day on which it
receives the Royal Assent.
(2) Part 4 commences on the 28th day after the day on which this Act
receives the Royal Assent.
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 3
Principal Act
3. In this Part, "Principal Act" means the Debits Tax Administration Act
1982.*1*
*1* No. 142, 1982, as amended. For previous amendments, see Nos. 39 and 110,
1983; Nos. 102 and 123, 1984; Nos. 65 and 123, 1985; Nos. 48 and 112, 1986;
Nos. 23 and 62, 1987; and No. 97, 1988.
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 4
Interpretation
4. Section 3 of the Principal Act is amended by omitting paragraph (a) from
the definition of "exempt debit" in subsection (1) and substituting the
following paragraphs:
that is made solely for the purpose of reversing a credit previously
made to the account; or
that is made for the purpose of deducting an amount under subsection
221YHZC (1A) of the Income Tax Assessment Act 1936; or".
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 5
Principal Act
5. In this Part, "Principal Act" means the Income Tax Assessment Act
1936.*2*
*2* No. 27, 1936, as amended. For previous amendments, see No. 88, 1936; No.
5, 1937; No. 46, 1938; No. 30, 1939; Nos. 17 and 65, 1940; Nos. 58 and 69,
1941; Nos. 22 and 50, 1942; No. 10, 1943; Nos. 3 and 28, 1944; Nos. 4 and 37,
1945; No. 6, 1946; Nos. 11 and 63, 1947; No. 44, 1948; No. 66, 1949; No. 48,
1950; No. 44, 1951; Nos. 4, 28 and 90, 1952; Nos. 1, 28, 45 and 81, 1953; No.
43, 1954; Nos. 18 and 62, 1955; Nos. 25, 30 and 101, 1956; Nos. 39 and 65,
1957; No. 55, 1958; Nos. 12, 70 and 85, 1959; Nos. 17, 18, 58 and 108, 1960;
Nos. 17, 27 and 94, 1961; Nos. 39 and 98, 1962; Nos. 34 and 69, 1963; Nos. 46,
68, 110 and 115, 1964; Nos. 33, 103 and 143, 1965; Nos. 50 and 83, 1966; Nos.
19, 38, 76 and 85, 1967; Nos. 4, 70, 87 and 148, 1968; Nos. 18, 93 and 101,
1969; No. 87, 1970; Nos. 6, 54 and 93, 1971; Nos. 5, 46, 47, 65 and 85, 1972;
Nos. 51, 52, 53, 164 and 165, 1973; No. 216, 1973 (as amended by No. 20,
1974); Nos. 26 and 126, 1974; Nos. 80 and 117, 1975; Nos. 50, 53, 56, 98, 143,
165 and 205, 1976; Nos. 57, 126 and 127, 1977; Nos. 36, 57, 87, 90, 123, 171
and 172, 1978; Nos. 12, 19, 27, 43, 62, 146, 147 and 149, 1979; Nos. 19, 24,
57, 58, 124, 133, 134 and 159, 1980; Nos. 61, 92, 108, 109, 110, 111, 154 and
175, 1981; Nos. 29, 38, 39, 76, 80, 106 and 123, 1982; Nos. 14, 25, 39, 49,
51, 54 and 103, 1983; Nos. 14, 42, 47, 63, 76, 115, 124, 165 and 174, 1984;
No. 123, 1984 (as amended by No. 65, 1985); Nos. 47, 49, 104, 123, 168 and
174, 1985; No. 173, 1985 (as amended by No. 49, 1986); Nos. 41, 46, 48, 51,
109, 112 and 154, 1986; No. 49, 1986 (as amended by No. 141, 1987); No. 52,
1986 (as amended by No. 141, 1987); No. 90, 1986 (as amended by No. 141,
1987); Nos. 23, 58, 61, 120, 145 and 163, 1987; No. 62, 1987 (as amended by
No. 108, 1987); No. 108, 1987 (as amended by No. 138, 1987); No. 138, 1987 (as
amended by No. 11, 1988); No. 139, 1987 (as amended by Nos. 11 and 78, 1988);
Nos. 8, 11, 59, 75, 78, 80, 87, 95, 97, 127 and 153, 1988; Nos. 2, 11, 56, 70,
73, 105, 107, 129, 163 and 167, 1989; No. 97, 1989 (as amended by No. 105,
1989); and No. 20, 1990.
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 6
Exemptions
6. Section 23 of the Principal Act is amended:
by omitting subparagraph (g) (iii) and substituting the following
subparagraph:
a society, association or club established for the encouragement or
promotion of a game or sport;";
by adding at the end of paragraph (g) the following word and
subparagraph:
a society, association or club established
for community service purposes (not being political purposes or lobbying
purposes);";
(c) by omitting paragraph (jd).
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 7
7. After section 26BB of the Principal Act the following section is
inserted:
Securities lending arrangements
"26BC. (1) In this section:
'convertible note':
in relation to a company - has the same meaning as in Division 3A; or
in relation to a unit trust - means a note issued by the trustee of the
unit trust, being a note that, if the unit trust were a company, would be a
convertible note issued by the company, and includes a note that would be a
convertible note within the meaning of Division 3A if:
references in that Division to a company were references to a unit
trust, or to the trustee of the unit trust, as the context requires; and
references in that Division to shares were references to units;
'debenture', in relation to a unit trust, means an instrument issued by the
trustee of the unit trust, being an instrument that, if the unit trust were a
company, would be a debenture issued by the company;
'eligible security' means:
a share, bond, debenture, convertible note, right, option or similar
financial instrument issued by a listed company; or
a unit, bond, debenture, convertible note, right, option or similar
financial instrument issued by the trustee of:
a listed unit trust; or
a unit trust any of the units of which were offered to the public; or
a bond, debenture, right, option or similar financial instrument issued
by a government or by an authority of a government;
'government' means:
the Commonwealth, a State or a Territory; or
the government of, or of a part of, a foreign country;
'listed company' means a company any of the shares of which are listed for
quotation in the official list of a stock exchange in Australia or elsewhere;
'listed unit trust' means a unit trust any of the units of which are listed
for official quotation in the official list of a stock exchange in Australia
or elsewhere;
'option':
in relation to a company - means an option to acquire shares in the
company; or
in relation to a unit trust - means an option to acquire units in the
unit trust; or
in relation to a government or an authority of a government - means an
option to acquire a bond, debenture or similar financial instrument issued by
the government or by the authority;
'right':
in relation to a company - means a right to acquire shares in the
company or to acquire an option; or
in relation to a unit trust - means a right to acquire units in the
unit trust or to acquire an option; or
in relation to a government or an authority of a government - means a
right to acquire a bond, debenture or similar financial instrument issued by
the government or by the authority or to acquire an option.
"(2) If an eligible security is held by a person as trustee for another
person who is absolutely entitled to the eligible security as against the
trustee, this section applies as if the eligible security were vested in the
other person and any acts of the trustee were the acts of that other person.
"(3) This section applies where:
under a written agreement of the kind known as a securities lending
arrangement, being an agreement that was entered into after 9 May 1990:
at a particular time (in this section called the 'original disposal
time'), a taxpayer (in this section called the 'lender') disposed of an
eligible security (in this section called the 'borrowed security') to another
taxpayer (in this section called the 'borrower'); and
at a later time (in this section called the 're-acquisition time'),
not being later than 3 months after the original disposal time, the lender:
re-acquired the borrowed security (which re-acquired security is in
this section called the 'replacement security') from the borrower; or
acquired an identical security (which acquired security is in this
section also called the 'replacement security') from the borrower; and
both the borrower and the lender were dealing with each other at arm's
length in relation to each of the transactions mentioned in paragraph (a);
and
none of the following events occurred during the period (in this
section called the 'borrowing period') commencing at the original disposal
time and ending at the re-acquisition time:
the creation of an entitlement to, or the making or payment of, a
distribution (whether in property or money) in respect of the borrowed
security;
the issue, by the company, trustee, government or government authority
concerned, of a right or option in respect of the borrowed security;
if the borrowed security is a right or option - the exercise of the
right or option; and
if the total consideration payable or to be given by the borrower under
the agreement consists of:
the transfer of, or the promise to transfer, the replacement security
or replacement securities concerned; and
other consideration (in this paragraph called the 'notifiable
consideration');
the agreement contains:
if the notifiable consideration is wholly covered by one of the
following categories:
a fee;
an adjustment for variations in the market value of eligible
securities;
other consideration;
a statement specifying the category concerned and setting out such information
as will enable the amount or value of the notifiable consideration to be
readily ascertained; or
if the notifiable consideration is covered by 2 or more of the
following categories:
a fee;
an adjustment for variations in the market value of eligible
securities;
other consideration;
a statement dissecting the notifiable consideration into those categories in
such a manner as will enable the amount or value of each category to be
readily ascertained; and
the lender does not dispose of (by transfer, declaration of trust or
otherwise) the right to receive any part of the total consideration payable or
to be given by the borrower under the agreement.
"(4) In determining:
whether an amount (other than a fee payable under the securities
lending arrangement) is included in the assessable income of the lender under
a provision of this Act other than part IIIA; or
whether an amount is allowable as a deduction to the lender;
in respect of either or both of the transactions covered by paragraph (3) (a),
the lender is to be treated as if:
neither of those transactions had been entered into; and
the lender had held the borrowed security at all times during the
borrowing period; and
if the replacement security is not the borrowed security - the
replacement security were the borrowed security.
"(5) In determining:
whether an amount is included in the assessable income of the borrower
under a provision of this Act other than part IIIA; or
an amount (other than a fee payable under the securities lending
arrangement) is allowable as a deduction to the borrower;
in respect of either or both of the transactions covered by paragraph (3)
(a):
if the borrowed security was disposed of by the borrower to a third
party:
the borrower is to be treated as if the borrower had acquired the
borrowed security from the lender for a consideration equal to the market
value of the borrowed security at the time of its acquisition; and
the borrower is to be treated as if the borrower had disposed of the
replacement security to the lender for a consideration equal to the market
value of the borrowed security at the time of its acquisition from the lender;
or
in any other case - the borrower is to be treated as if neither of the
transactions referred to in paragraph (3) (a) had been entered into.
"(6) part IIIA does not apply in respect of the disposal of the borrowed
security by the lender and:
if the borrowed security was acquired by the lender before 20 September
1985 - the lender is to be taken, for the purposes of that Part, to have
acquired the replacement security before that date; or
if the borrowed security was acquired by the lender on or after 20
September 1985 - the lender is to be taken, for the purposes of that Part, to
have paid as consideration in respect of the acquisition of the replacement
security an amount equal to:
for the purpose of ascertaining whether a capital gain accrued to the
lender in the event of a subsequent disposal of the replacement security by
the lender - the amount that would have been the indexed cost base to the
lender of the borrowed security for the purposes of that Part if that Part had
applied in respect of the disposal of the borrowed security by the lender; or
for the purpose of ascertaining whether the lender incurred a capital
loss in the event of a subsequent disposal of the replacement security by the
lender - the amount that would have been the reduced cost base to the lender
of the borrowed security for the purposes of that Part if that Part had
applied in respect of the disposal of the borrowed security by the lender.
"(7) If, in the case of a borrowed security to which paragraph (6) (b)
applies, the replacement security was disposed of by the lender (otherwise
than under a transaction covered by subsection (3)) within 12 months after the
earliest day on which a paired security in relation to the replacement
security was acquired by the lender (otherwise than under a transaction
covered by subsection (3)), the reference in paragraph (6) (b) to the indexed
cost base to the lender of the borrowed security is to be read as a reference
to the cost base to the lender of the paired security.
"(8) For the purposes of subsection (7):
where the lender disposes of an eligible security to a borrower under a
transaction covered by subsection (3), that security is a paired security in
relation to the replacement security subsequently acquired or re-acquired by
the lender; and
a security is a paired security in relation to a second security if the
first security is a paired security in relation to a third security that is a
paired security in relation to the second security (including a pairing with
the second security by another application or other applications of this
paragraph).
"(9) For the purposes of part IIIA:
if the borrowed security was disposed of by the borrower to a third
party:
the borrower is to be treated as if the borrower had acquired the
borrowed security from the lender for a consideration equal to the market
value of the borrowed security at the time of its acquisition; and
the borrower is to be treated as if the borrower had disposed of the
replacement security to the lender for a consideration equal to the market
value of the borrowed security at the time of its acquisition from the lender;
or
if any other case - the borrower is to be treated as if neither of the
transactions referred to in paragraph (3) (a) had been entered into.
"(10) An expression used in subsection (6), (7), (8) or (9) and in part IIIA
has the same meaning in the subsection concerned as it has in that Part.
"(11) For the purposes of the application of part IIIA to a taxpayer, where
the expression 'provision of this Part' or 'provisions of this Part' is used
in that Part, the expression is to be taken to include a reference to
subsections (6), (7), (8) and (9) of this section.
"(12) Where:
a taxpayer has entered into a transaction of a kind referred to in
subparagraph (3) (a) (i); and
at the time of making an assessment in respect of income of the
taxpayer of the year of income in which the transaction occurred, the
Commissioner is of the opinion that, at a later time, circumstances will exist
because of which this section will apply in connection with that transaction;
the Commissioner may apply the provisions of this section as if those
circumstances existed at the time of making the assessment.
"(13) Where:
in the making of an assessment, this section has been applied on the
basis that a circumstance that did not exist at the time of making the
assessment would exist at a later time; and
after the making of the assessment, the Commissioner becomes satisfied
that the circumstance will not exist;
then, in spite of anything in section 170, the Commissioner may amend the
assessment at any time for the purpose of ensuring that this section is to be
taken always to have applied on the basis that the circumstance did not
exist.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 8
Alternative election in case of disposal, death or compulsory destruction of
live stock
8. Section 36AAA of the Principal Act is amended:
(a) by inserting after subsection (1) the following subsection:
"(1AA) Where:
live stock, being assets of a business of primary production carried on
in Australia by a taxpayer, a partnership or the trustee of a trust estate,
are disposed of, by sale or otherwise, by the taxpayer, partnership or trustee
in consequence of an official notification under a law of the Commonwealth, a
State or a Territory dealing with contamination of land, live stock or other
property; and
the proceeds of the disposal of the live stock would, apart from this
section, be included in the assessable income of the taxpayer, the partnership
or the trust estate, of a year or years of income; and
there is a profit on the disposal of the live stock;
and
no election has been made under section 36AA in relation to that
profit; and
it is established to the satisfaction of the Commissioner that the
proceeds of the disposal of the live stock have been or will be applied by the
taxpayer, the partnership or the trustee, as the case may be, wholly or
principally in the purchase of live stock, or in the maintenance of breeding
stock, for the purpose of replacing the live stock that were disposed of;
the taxpayer, the partnership or the trustee, together with each beneficiary
entitled to make an election under section 36AA in relation to that profit, as
the case may be, may, in lieu of any election that a person is entitled to
make under section 36AA in relation to that profit, elect that this section is
to apply in relation to the profit and in relation to the proceeds of the
disposal of the live stock.";
(b) by inserting in subsection (2) "or (1AA)" after "(1)" (first occurring);
(c) by inserting after paragraph (2) (a) the following paragraph:
if the election is an election under subsection (1AA):
the whole of the proceeds of the disposal of the live stock to which
the election relates (whenever received) are to be included in the assessable
income of the taxpayer, the partnership or the trust estate, as the case may
be, of the year of income to which the election relates and no part of those
proceeds are to be included in the assessable income of the taxpayer, the
partnership or the trust estate, as the case may be, of any other year of
income; and
the assessable income of the taxpayer, the partnership or the trust
estate, as the case may be, of the year of income to which the election
relates is to be reduced by an amount equal to the profit on the disposal of
the live stock;";
(d) by inserting in paragraphs (2) (c) and (d) and subsection (4) ", (1AA)"
after "(1)";
(e) by inserting in paragraphs (5) (a), (6) (a), (7) (a), (9) (a), (10) (a),
(11) (a), (12) (a) and (13) (a) and subsection (16) "or (1AA)" after "(1)";
(f) by inserting in paragraph (13) (a) ", (aaa)" after "(2) (a)";
(g) by inserting in paragraph (13) (d) ", (1AA)" after "(1)" (first
occurring);
(h) by inserting in paragraph (13) (d) ", subsection (1AA)" after "(1)"
(last occurring);
(j) by inserting after paragraph (14) (a) the following paragraph:
in the case of an election under subsection (1AA):
if the whole of the proceeds of the disposal of the live stock to which
the election relates were received in one year of income - on or before the
date of lodgment of the return of income of that year of income; or
if the proceeds of the disposal of the live stock to which the
election relates were received in 2 or more years of income - on or before the
date of lodgment of the return of income of the later or latest of those years
of income;";
(k) by omitting from subsection (17) "Paragraph" and substituting "Where an
election is made under subsection (1), paragraph";
(m) by inserting after subsection (19) the following subsections:
"(19A) Where an election is made under subsection (1AA), a reference in this
section to the proceeds of the disposal of any live stock is to be read as a
reference to the sum of:
any amount received by the person who owned the live stock by way of
compensation for:
the condemnation of the live stock; or
the loss or diminution of the value of the live stock;
resulting from an official notification under a law of the Commonwealth, a
State or a Territory dealing with contamination of land, live stock or other
property; and
any amount received by the person who owned the live stock as payment
for:
the live stock; or
the carcases, or any part of the carcases, of the live stock.
"(19B) Where an election is made under subsection
(1AA), a reference in this section to profit on the disposal of any live stock
is to be read as a reference to the amount remaining after deducting from the
proceeds of the disposal of the live stock the sum of:
in respect of any of the live stock that were on hand at the beginning
of the year of income in which the live stock were disposed of - the value at
which the live stock is, for the purposes of this Act, to be taken into
account at the beginning of that year of income; and
in respect of any of the live stock that were not on hand at the
beginning of the year of income:
in the case of live stock acquired by purchase - the purchase price of
that live stock; and
in the case of live stock acquired otherwise than by purchase, but not
including natural increase bred during that year of income by the person who
owned the live stock at the time of the disposal - the amount that, under this
Act, is taken to be the purchase price of that live stock.
"(19C) Subsection (19B) has effect for the purpose of
determining the profit on the disposal of live stock of a particular species
included in live stock that were disposed of and, for that purpose, a
reference in that subsection to live stock is to be read as a reference to
live stock of that species.";
(n) by adding at the end the following subsections:
"(24) In this section, a reference to the year of income to which an
election under subsection (1AA) relates is a reference to the year of income
in which the live stock to which the election relates were destroyed.
"(25) In this section:
'official notification' includes a declaration, direction, instruction or
order.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 9
Compensation for death, disposal or compulsory destruction
of live stock
9. Section 36AA of the Principal Act is amended:
(a) by inserting after subsection (1) the following subsection:
"(1A) Where:
live stock, being assets of a business of primary production carried on
by a taxpayer in Australia are disposed of, by sale or otherwise, by the
taxpayer in consequence of an official notification under a law of the
Commonwealth, a State or a Territory dealing with contamination of land, live
stock or other property; and
the proceeds of the disposal of the live stock would, apart from this
section, be included in the assessable income of the taxpayer of a year or
years of income; and
there is a profit arising in respect of the disposal of the live
stock;
the taxpayer may elect that this section is to apply in relation to the profit
arising in respect of the disposal of the live stock.";
(b) by inserting in subsections (2), (3), (4), (5) and (6) "or (1A)" after
"(1)";
(c) by inserting in subsections (2), (3), (4) and (6) "or disposal" after
"death" (wherever occurring);
(d) by inserting in subsections (2), (3) and (4) "or disposed of" after
"destroyed" (wherever occurring);
(e) by omitting "or" from the end of paragraph (5) (c);
(f) by adding at the end of paragraph (5) (d) "or";
(g) by inserting after paragraph (5) (d) the following paragraph:
both of the following conditions are satisfied:
the taxpayer has made an election under subsection (1A);
the taxpayer ceases to carry on the business of primary production of
which the live stock that were disposed of were assets;";
(h) by inserting in subsection (5) "and in consequence of the election"
after "in pursuance of this section";
(j) by adding at the end the following subsections:
"(9) In this section, a reference to the proceeds of the disposal of any live
stock is to be read as a reference to the sum of:
any amount received by the person who owned the live stock by way of
compensation for:
the condemnation of the live stock; or
the loss or diminution of the value of the live stock;
resulting from an official notification under a law of the Commonwealth, a
State or a Territory dealing with contamination of land, live stock or other
property; and
any amount received by the person who owned the live stock as payment
for:
the live stock; or
the carcases, or any part of the carcases, of the live stock.
"(10) In this section, a reference to profit arising
in respect of the disposal of any live stock is to be read as a reference to
the amount remaining after deducting from the proceeds of the disposal of the
live stock the sum of:
in respect of any of the live stock that were on hand at the beginning
of the year of income in which the live stock were disposed of - the value at
which the live stock is, for the purposes of this Act, to be taken into
account at the beginning of that year of income; and
in respect of any of the live stock that were not on hand at the
beginning of the year of income:
in the case of live stock acquired by purchase - the purchase price of
that live stock; and
in the case of live stock acquired otherwise than by purchase, but not
including natural increase bred during that year of income by the person who
owned the live stock at the time of the disposal - the amount that, under this
Act, is taken to be the purchase price of that live stock.
"(11) In this section:
'official notification' includes a declaration,
direction, instruction or order.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 10
Gifts, pensions etc.
10. Section 78 of the Principal Act is amended:
(a) by inserting after subparagraph (1) (a) (xcvi) the following
subparagraphs:
The Borneo Memorials Trust Fund;
the Guadalcanal and Solomon Islands War Memorial Foundation;
Australian Vietnam Forces Welcome Home '87 Pty Limited, where the
gift is for the purpose of the Australian Vietnam Forces National Memorial
project;
the Life Education Centre;
a company that conducts life education programs under the auspices of
the Life Education Centre, where:
the gift is for the purpose of the conduct of such
programs; and
the company is not carried on for the purposes of
profit or gain to its individual members; and
the company is, by the terms of the company's
constituent document, prohibited from making any distribution, whether in
money, property or otherwise, to its members;";
by inserting after subsection (6ai) the following subsections:
"(6AJ) A gift to a fund to which subparagraph (1) (a) (xcvii) or (xcviii)
applies is not an allowable deduction unless the gift was or is made on or
after 10 November 1989 and before 1 July 1992.
"(6AK) A gift is not an allowable deduction under paragraph (1) (a) by virtue
of subparagraph (1) (a) (xcix) unless the gift was or is made on or after 1
July 1989 and before 1 July 1990.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 11
11. After section 79D of the Principal Act the following sections are
inserted:
General domestic losses of post-1989 years of income
"79E. (1) For the purposes of this section, a taxpayer incurs a loss in a
post-1989 year of income equal to the amount (if any) by which the taxpayer's
non-loss deductions for the year of income exceed the sum of the taxpayer's
assessable income and net exempt income for that year.
"(2) In spite of subsection (1), if Subdivision B of Division 2A applies in
relation to a taxpayer in relation to a post-1989 year of income, then, for
the purposes of this section, the taxpayer incurs a loss in the year of income
if, and only if, the taxpayer's current year loss amount for the year exceeds
the taxpayer's net exempt income for the year, and the amount of the loss is
equal to the excess.
"(3) Subject to this section, so much of a taxpayer's losses incurred in any
of the post-1989 years of income before a particular year of income as has not
been allowed as a deduction from the taxpayer's income of any of those years
is allowable as a deduction in accordance with the following provisions:
where the taxpayer has not derived exempt income in the particular year
of income, the deduction is to be made from the taxpayer's assessable income
of that year;
where the taxpayer has derived exempt income in that year, the
deduction is to be made successively from the taxpayer's net exempt income and
from the taxpayer's assessable income of that year;
where a deduction is allowable under this section in respect of 2 or
more losses, the losses are to be taken into account in the order in which
they were incurred.
"(4) Where a taxpayer has incurred a loss in a post-1989 year of income for
the purposes of this section and has also incurred a loss in that year for the
purposes of section 79F, only the excess (if any) of the former loss over the
latter loss is to be taken into account for the purposes of subsection (3).
"(5) The losses referred to in subsection (3) are not allowable as a
deduction from foreign income of a taxpayer except to the extent provided in
an election under subsection (6).
"(6) A taxpayer who has derived foreign income in a year of income may elect
that the whole or a specified part of the losses referred to in subsection (3)
be allowable as a deduction from the taxpayer's foreign income of that year.
"(7) An election under subsection (6):
must be exercised by notice in writing to the Commissioner; and
must be lodged with the Commissioner on or before the date of lodgment
of the return of income of the taxpayer for the year of income to which the
election relates or within such further period as the Commissioner allows.
"(8) In spite of any other provision of this section, if, before a year of
income, a taxpayer:
has become a bankrupt; or
not having become a bankrupt, has been released from any debts by the
operation of an Act relating to bankruptcy;
then no loss incurred by the taxpayer before the day on which the taxpayer
became a bankrupt or was so released is an allowable deduction in respect of
the year of income under subsection (3).
"(9) Where:
in a year of income (in this section called the 'payment year'), a
taxpayer pays an amount in respect of a debt incurred by the taxpayer in a
preceding year of income; and
that preceding year of income (in this section called the 'loss year')
is a year in which the taxpayer incurred a loss to which subsection (8)
applies;
then, subject to subsection (10), the amount paid by the taxpayer is an
allowable deduction for the payment year, but only to the extent (if any) that
it does not exceed so much of the debt as the Commissioner is satisfied was
taken into account in calculating the amount of the loss.
"(10) The total deductions allowable to the taxpayer for the payment year
under subsection (9) are not to exceed the amount of the loss reduced by the
sum of:
the deductions (if any) allowed under subsection (9) from the
taxpayer's income of a year or years of income before the payment year in
relation to the payment of other amounts in respect of debts incurred by the
taxpayer in the loss year; and
so much (if any) of the loss as has been allowed under subsection (3)
as a deduction or deductions from the taxpayer's income (including the
taxpayer's net exempt income) of a year or years of income before the payment
year; and
so much (if any) of the loss as, but for subsection (8), would have
been allowed or allowable under subsection (3) as a deduction or deductions
from the taxpayer's net exempt income of the payment year or of a year or
years of income before the payment year.
"(11) Subsections 80 (5), (6) and (7) have the same effect in relation to
deductions under subsection (3) of this section as they do in relation to
deductions under subsection 80 (2).
"(12) In this section:
'class of income' has the same meaning as in section 160AFD;
'current year loss amount', in relation to a taxpayer to whom Subdivision B
of Division 2A applies in relation to a year of income, means the amount
calculated using the formula:
Excess notional loss + Excess deductible amount
where:
'Excess notional loss' means the amount (if any) by which the sum of the
taxpayer's notional losses in respect of relevant periods (within the meaning
of that Subdivision) in relation to the year of income exceeds the eligible
notional loss (within the meaning of that Subdivision) of the taxpayer in
relation to the year of income;
'Excess deductible amount' means the amount (if any) by which the deductible
amount referred to in the application of subsection 50C (2) in relation to the
taxpayer in relation to the year of income exceeds the income amount referred
to in that subsection;
'foreign source' has the same meaning as in section 160AFD;
'net exempt income', in relation to a taxpayer, means:
where the taxpayer is a resident - the amount by which the taxpayer's
exempt income derived from all sources exceeds the sum of the expenses (not
being expenses of a capital nature) incurred in deriving that income and any
taxes payable in respect of that income in any country or place outside
Australia; and
where the taxpayer is a non-resident - the amount by which the
taxpayer's exempt income derived from sources in Australia (other than income,
if any, to which section 128D applies) exceeds the sum of the expenses (not
being expenses of a capital nature) incurred in deriving that income;
'non-loss deduction' means an allowable deduction other than one allowable
under this section or section 79F, 80, 80AAA or 80AA;
'post-1989 year of income' means the year of income commencing on1 July 1989
or any later year of income.
"(13) In applying the definition of 'net exempt income' in subsection (12)
in relation to a taxpayer:
if the taxpayer is a resident, there is to be disregarded so much of
any net exempt income from petroleum (within the meaning of Division 10AA)
derived by the taxpayer in a year of income as does not exceed the amount that
would be the unrecouped capital expenditure of the taxpayer (within the
meaning of that Division) as at the end of the year of income if the taxpayer
had not derived that net exempt income from petroleum; and
for the purposes of paragraph (b) of the definition, exempt income to
which subsection 26AG (1) applies is to be taken to be derived from sources in
Australia and any taxes payable in respect of that income in any country or
place outside Australia are to be taken to be expenses incurred in deriving
that income.
"(14) For the purposes of the definition of 'non-loss deduction' in
subsection (12), where the amount of a class of income derived by a taxpayer
in a year of income from a foreign source is exceeded by the sum of:
any deductions allowed or allowable from the assessable income of the
taxpayer of the year of income that relate exclusively to income of that class
derived from that source; and
so much of any other deductions allowed or allowable from that
assessable income (other than apportionable deductions) as, in the opinion of
the Commissioner, may appropriately be related to income of that class derived
from that source;
then the amount of the excess is to be disregarded.
Film losses of post-1989 years of income
"79F. (1) For the purposes of this section, a taxpayer incurs a film loss in
a post-1989 year of income if:
the amount of the taxpayer's film deductions for the year exceeds the
sum of the taxpayer's assessable film income and net exempt film income for
the year; and
the taxpayer incurs a loss for the year for the purposes of section
79E.
"(2) The amount of the film loss is so much of the excess referred to in
paragraph (1) (a) as does not exceed the amount of the loss referred to in
paragraph (1) (b).
"(3) In spite of subsection (1), if Subdivision B of Division 2A applies in
relation to a taxpayer in relation to a post-1989 year of income, then, for
the purposes of this section, the taxpayer incurs a film loss in the year of
income if, and only if:
the taxpayer's current year loss amount for the year exceeds the
taxpayer's net exempt film income of the year; and
the taxpayer incurs a loss in the year of income for the purposes of
section 79E.
"(4) The amount of the film loss is so much of the excess referred to in
paragraph (3) (a) as does not exceed the amount of the loss referred to in
paragraph (3) (b).
"(5) In determining for the purposes of subsection (3) whether a taxpayer
has a current year loss amount, the only assessable income of the taxpayer to
be taken into account is assessable film income and the only allowable
deductions of the taxpayer to be taken into account are film deductions.
"(6) Subject to this section, so much of a taxpayer's film losses incurred
in any of the post-1989 years of income before a particular year of income as
has not been allowed as a deduction from the taxpayer's income of any of those
years is allowable as a deduction in accordance with the following
provisions:
where the taxpayer has not derived exempt income in the particular year
of income, the deduction is to be made from the taxpayer's assessable income
of that year;
where the taxpayer has derived exempt income in that year, the
deduction is to be made successively from the taxpayer's net exempt income and
from the taxpayer's assessable income of that year;
where a deduction is allowable under this section in respect of 2 or
more losses, the losses are to be taken into account in the order in which
they were incurred.
"(7) For the purposes of applying subsection (6) in relation to a taxpayer
in relation to a year of income:
the amount of the deduction to be made from the taxpayer's net exempt
income of the year of income is not to exceed the amount of the taxpayer's net
exempt film income of the year of income; and
the amount of the deduction to be made from the taxpayer's assessable
income of the year of income is not to exceed the amount of the taxpayer's net
assessable film income of the year of income.
"(8) In spite of any other provision of this section, if, before a year of
income, a taxpayer:
has become a bankrupt; or
not having become a bankrupt, has been released from any debts by the
operation of an Act relating to bankruptcy;
then no film loss incurred by the taxpayer before the day on which the
taxpayer became a bankrupt or was so released is an allowable deduction in
respect of the year of income under subsection (6).
"(9) Where:
in a year of income (in this section called the 'payment year'), a
taxpayer pays an amount in respect of a debt incurred by the taxpayer in a
preceding year of income; and
that preceding year of income (in this section called the 'loss year')
is a year in which the taxpayer incurred a loss to which subsection (8)
applies; and
the debt was incurred in the course of deriving or gaining amounts to
which section 26AG applies in relation to the taxpayer in relation to any year
of income;
then, subject to subsection (10), the amount paid by the taxpayer is an
allowable deduction for the payment year, but only to the extent (if any) that
it does not exceed so much of the debt as the Commissioner is satisfied was
taken into account in calculating the amount of the loss.
"(10) The total deductions allowable to the taxpayer for the payment year
under subsection (9) are not to exceed the amount of the film loss reduced by
the sum of:
the deductions (if any) allowed under subsection (9) from the
taxpayer's income of a year or years of income before the payment year in
relation to the payment of other amounts in respect of debts incurred by the
taxpayer in the loss year; and
so much (if any) of the loss as has been allowed under subsection (6)
as a deduction or deductions from the taxpayer's income (including the
taxpayer's net exempt income) of a year or years of income before the payment
year; and
so much (if any) of the film loss as, but for subsection (8), would
have been allowed or allowable under subsection (6) as a deduction or
deductions from the taxpayer's net exempt income of the payment year or of a
year or years of income before the payment year.
"(11) Subsection 80AAA (12) has the same effect in relation to deductions
under subsection (6) of this section as it does in relation to deductions
under subsection 80AAA (7).
"(12) In this section:
'assessable film income', in relation to a taxpayer in relation to a year of
income, means so much of the amount, or the sum of the amounts, to which
section 26AG applies in relation to the taxpayer in relation to the year of
income as is assessable income;
'current year loss amount' has the same meaning as in section 79E;
'exempt film income', in relation to a taxpayer in relation to a year of
income, means so much of the amount, or the sum of the amounts, to which
section 26AG applies in relation to the taxpayer in relation to the year of
income as is exempt income;
'film deductions', in relation to a taxpayer in relation to a year of
income, means:
deductions allowable to the taxpayer in respect of the year of income
under sections 124ZAF and 124ZAFA; and
deductions allowable to the taxpayer in respect of the year of income
that are deductions to which section 124ZAO applies in relation to the
taxpayer in relation to the year of income;
'net assessable film income', in relation to a taxpayer in relation to a
year of income, means the amount of the assessable film income of the taxpayer
of the year of income as reduced by the film deductions of the taxpayer of the
year of income;
'net exempt film income', in relation to a taxpayer in relation to a year of
income, means the amount of the exempt film income of the taxpayer of the year
of income as reduced by the sum of:
any taxes payable in respect of that exempt film income in any country
or place outside Australia; and
any expenses (not being expenses of a capital nature) to the extent to
which they were incurred in the year of income in deriving that exempt film
income;
'net exempt income' has the same meaning as in section 79E;
'post-1989 year of income' means the year of income commencing on 1 July
1989 or any later year of income.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 12
General domestic losses of pre-1990 years of income
12. Section 80 of the Principal Act is amended by inserting before
subsection (1) the following subsection:
"(1AA) This section does not apply to a loss incurred in the year of income
commencing on 1 July 1989 or any later year of income.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 13
Film losses of pre-1990 years of income
13. Section 80AAA of the Principal Act is amended by inserting after
subsection (2) the following subsection:
"(2A) This section does not apply to a film loss incurred in the year of
income commencing on 1 July 1989 or any later year of income.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 14
Primary production losses of pre-1990 years of income
14. Section 80AA of the Principal Act is amended by adding at the end of
subsection (1) "before the year of income commencing on 1 July 1989.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 15
15. Sections 80AB and 80AC of the Principal Act are repealed and the
following sections are substituted:
Order in which loss deductions are to be taken into account
"80AB. Where deductions are allowable from the assessable income of a
taxpayer of a year of income under any 2 or more of the following
subsections:
subsection 79E (3);
subsection 79F (6);
subsection 80 (2);
subsection 80AAA (7);
subsection 80AA (4);
the deductions allowable under the subsections are to be taken into account in
the following order:
first, any deduction allowable under subsection 80AAA (7);
second, any deduction allowable under subsection 80 (2);
third, any deduction allowable under subsection 79F (6);
fourth, any deduction allowable under subsection 80AA (4);
fifth, any deduction allowable under subsection 79E (3).
Limitations on net exempt income to be taken into account in respect of loss
deductions
"80AC. (1) Where, but for this section, a taxpayer's net exempt income
(within the meaning of sections 79E and 80) of a year of income would be taken
into account for the purposes of any 2 or more of the following paragraphs:
paragraph 79E (3) (b);
paragraph 79F (6) (b);
paragraph 80 (2) (b);
paragraph 80AAA (7) (b);
paragraph 80AA (4) (b);
then the net exempt income is to be so taken into account in accordance with
the following principles:
first, the amount is to be taken into account to the extent (if any)
necessary for the purposes of paragraph 80AAA (7) (b);
the amount, to the extent (if any) not so taken into account, is then
to be taken into account to the extent (if any) necessary for the purposes of
paragraph 80 (2) (b); and so on successively for the purposes of paragraphs
79F (6) (b), 80AA (4) (b) and 79E (3) (b).
"(2) Where, but for this section, a taxpayer's net exempt income (within the
meaning of sections 79E and 80) of a year of income would be taken into
account for the purposes of any 2 or more of the following paragraphs:
paragraph 79E (10) (c);
paragraph 79F (10) (c);
paragraph 80 (4B) (c);
paragraph 80AAA (11) (c);
paragraph 80AA (8) (c);
then the net exempt income is to be so taken into account in accordance with
the following principles:
first, the amount is to be taken into account to the extent (if any)
necessary for the purposes of paragraph 80AAA (11) (c);
the amount, to the extent (if any) not so taken into account, is then
to be taken into account to the extent (if any) necessary for the purposes of
paragraph 80 (4B) (c); and so on successively for the purposes of paragraphs
79F (10) (c), 80AA (8) (c) and 79E (10) (c).".
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 16
Heading to Division 10 of Part III
16. The heading to Division 10 of Part III of the Principal Act is repealed
and the following heading is substituted:
"Division 10 - Mining and Quarrying".
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 17
17. Before section 122 of the Principal Act the following heading is
inserted:
"Subdivision A - General Mining".
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 18
Interpretation
18. Section 122 of the Principal Act is amended by inserting in subsection
(1) the following definition:
" 'allowable capital expenditure' has the meaning given by section 122A;".
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 19
Deduction of allowable (post 19 July 1982) capital
expenditure
19. Section 122DG of the Principal Act is amended by omitting from
subsection (6) "or under section 122J" and substituting ", under section 122J,
under section 122JE or under section 122JF".
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 20
Election that Subdivision not apply to plant
20. Section 122h of the Principal Act is amended by omitting from subsection
(1) "Division" and substituting "Subdivision".
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 21
Exploration and prospecting expenditure
21. Section 122J of the Principal Act is amended by inserting in subsection
(4B) ", or under section 122JF," after "deductions allowable under this
section".
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 22
22. Before section 122K of the Principal Act the following subdivision and
heading are inserted:
Subdivision B - Quarrying
Interpretation
"122JB. (1) In this Subdivision:
'allowable capital expenditure' has the meaning given by section 122JC;
'concentration' means concentration by a gravity, magnetic, electrostatic or
flotation process;
'eligible purposes' means:
the purposes for which allowable capital expenditure may be incurred;
or
the purposes referred to in section 122JF;
'eligible quarrying operations' means quarrying operations on a quarrying
property in Australia for the extraction of quarry materials from their
natural site, being operations carried on for the purpose of gaining or
producing assessable income, but does not include prescribed mining operations
within the meaning of Subdivision A;
'housing and welfare' means:
residential accommodation; or
health, educational, recreational or other similar facilities; or
facilities for the provision of meals;
and includes works carried out directly in connection with such accommodation
or facilities (including works for the provision of water, light, power,
access or communications);
'property' includes a quarrying or prospecting right;
'quarry materials' means any materials obtained by quarrying;
'quarrying or prospecting information' means geological, geophysical or
technical information, being information that:
relates to the presence, absence or extent of deposits of quarry
materials in an area or is likely to be of assistance in determining the
presence, absence or extent of such deposits in an area; and
has been obtained from exploration or prospecting, or quarrying, for
quarry materials;
'quarrying or prospecting right' means:
an authority, licence, permit or right to quarry or prospect for quarry
materials in a particular area in Australia; or
a lease of land in Australia by virtue of which the lessee is entitled
to quarry or prospect for quarry materials on the land;
and includes an interest in such an authority, licence, permit, right or lease
and, for the purposes of provisions relating to the acquisition by a person of
a quarrying or prospecting right from another person, also includes any rights
in respect of buildings or other improvements on the land concerned, or used
in connection with operations on the land concerned, that are acquired with
the quarrying or prospecting right, but does not include rights in respect of
housing and welfare;
'treatment' means:
cleaning, leaching, crushing, grinding, breaking, screening, grading or
sizing; or
concentration; or
any other treatment applied to quarry materials, being a treatment that
is applied before concentration or, in the case of quarry materials not
requiring concentration, that would, if the quarry materials had required
concentration, have been applied before the concentration;
and, without extending, by implication, the processes that are included in
this definition, does not include sintering or calcining.
"(2) Where a taxpayer carries on eligible quarrying operations on 2 or more
quarrying properties, this Subdivision (other than section 122JF), except to
the extent to which the contrary intention appears, is to be construed as
applying in relation to the operations of that taxpayer on and in connection
with each of those quarrying properties as if it were the only quarrying
property on which the taxpayer carried on eligible quarrying operations, and,
for the purposes of the application of this Subdivision (other than section
122JF) in relation to a taxpayer in relation to a quarrying property:
any matters or things relating exclusively to any other quarrying
property on which the taxpayer carried on eligible quarrying operations are to
be disregarded; and
amounts of expenditure or other amounts to which paragraph (a) does not
apply are to be apportioned in such manner as the Commissioner considers
reasonable.
"(3) If, by virtue of a provision of this Subdivision, an amount is taken to
be specified in a notice in lieu of another amount, a reference in this
Subdivision to an amount specified in the notice is to be read as a reference
to that first-mentioned amount.
"(4) For the purposes of this Subdivision:
any amount specified in a notice given to the Commissioner under
section 122JD in relation to the acquisition from a taxpayer of a quarrying or
prospecting right or quarrying or prospecting information is to be taken to be
wholly attributable to expenditure incurred by the taxpayer; and
the extent to which such an amount is attributable to particular
expenditure, to expenditure of a particular class or to expenditure incurred
at a particular time or during a particular period is to be determined by the
Commissioner.
Allowable capital expenditure
"122JC. (1) For the purposes of this Subdivision, allowable capital
expenditure of a taxpayer is expenditure of a capital nature incurred by the
taxpayer, being:
expenditure in carrying on eligible quarrying operations, including
expenditure:
in preparing a site for such operations; or
on buildings or other improvements necessary for the carrying on by
the taxpayer of such operations; or
in providing, or by way of contribution to the cost of providing,
water, light or power for use on, or access to or communications with, the
site of eligible quarrying operations carried on, or to be carried on, by the
taxpayer; or
expenditure on:
buildings for use directly in connection with the operation or
maintenance of plant, being plant for use primarily and principally in the
treatment of quarry materials obtained from the carrying on by the taxpayer of
eligible quarrying operations; or
buildings or other improvements for use directly in connection with
the storage (whether before or after treatment) of quarry materials in
relation to the operation of plant of the kind mentioned in subparagraph (i);
or
expenditure on acquiring:
a quarrying or prospecting right from another person; or
quarrying or prospecting information from another person;
to the extent only of the amount of the expenditure that is specified in a
notice under section 122JD given to the Commissioner by the taxpayer and that
other person.
"(2) Subsection (1) does not apply to expenditure on property, being plant
or articles for the purposes of section 54.
"(3) Subsection (1) does not apply to expenditure on housing and welfare.
"(4) Without extending, by implication, the operation of subsection (1), the
expenditure referred to in that subsection does not include expenditure
incurred by the taxpayer on or in relation to:
ships, railway rolling-stock or road vehicles, or railway lines, roads,
pipelines or other facilities, for use wholly or partly for the purpose of the
transport of quarry materials or products of quarry materials, other than
transport wholly within the site of eligible quarrying operations carried on
by the taxpayer; or
works carried out in connection with, or buildings or other
improvements or plant constructed or acquired for use in connection with, the
establishment, operation or use of a port or other facilities for ships; or
an office building that is not situated at or adjacent to the site of
eligible quarrying operations carried on by the taxpayer.
Purchase of quarrying or prospecting right or information
"122JD. (1) Where a person (in this section called the 'purchaser') has
incurred expenditure in acquiring from another person (in this section called
the 'vendor'), for the purpose of carrying on:
eligible quarrying operations; or
exploration or prospecting for quarry materials obtainable by eligible
quarrying operations;
a quarrying or prospecting right or quarrying or prospecting information, the
purchaser and the vendor may give notice to the Commissioner that they have
agreed to the inclusion in the allowable capital expenditure of the purchaser
of an amount specified in the notice, being the whole or a part of that
expenditure.
"(2) If the amount specified in a notice given under this section in respect
of a transaction exceeds the sum of:
so much of the capital expenditure (other than expenditure on plant or
expenditure of a kind referred to in section 122JF) incurred by the vendor
after 15 August 1989 and before the date of the transaction in relation to the
area that is the subject of the right or to which the information relates as:
has not been allowed and is not allowable as a deduction to the vendor
under subsection 122JE (1) in respect of a year of income of the vendor
preceding the year of income during which the transaction occurred; and
is attributable to an amount of expenditure incurred in relation to
that area that has not been taken into account in determining an amount to be
included in the allowable capital expenditure of a person under paragraph
122JC (1) (c) in respect of a transaction entered into before the
first-mentioned transaction; and
any expenditure of the vendor (other than expenditure on plant in use
by the vendor at the date of the transaction) of a kind referred to in section
122JF incurred by the vendor after 15 August 1989 and before the date of the
transaction that has not been allowed and is not allowable as a deduction to
the vendor in the year of income in which the transaction takes place or in
any prior year of income; and
the amount included in the vendor's assessable income under section
122K in relation to property acquired by the purchaser from the vendor in
connection with the transaction;
the amount specified in the notice is to be taken, for all purposes of this
Subdivision, to be the amount in fact so specified less the amount of the
excess.
"(3) For the purposes of paragraph (2) (a), the capital expenditure incurred
by the vendor in relation to an area the subject of a quarrying or prospecting
right is to be taken not to include capital expenditure on buildings or other
improvements unless rights in respect of them are acquired by the purchaser
with the quarrying or prospecting right.
"(4) A notice under this section is not to be taken to have been given where
the notice relates to a lease in relation to the grant, assignment or
surrender of which the persons giving the notice have (whether before or after
the lodging of the notice with the Commissioner) made an election under
subsection 88B (5) that has effect in relation to the grant, assignment or
surrender.
"(5) A notice under this section:
must be in writing signed by or on behalf of the persons giving the
notice; and
must be lodged with the Commissioner not later than 2 months after the
end of the year of income of the purchaser in which the right or information
was acquired, or within such further time as the Commissioner allows.
Deduction of allowable capital expenditure
"122JE. (1) Where, after 15 August 1989 and in a year of income, a taxpayer
incurs allowable capital expenditure, an amount ascertained in accordance with
this section is an allowable deduction in respect of that expenditure in
respect of that year of income and in respect of all subsequent years of
income.
"(2) Subject to subsection (5), the deduction allowable under subsection (1)
in respect of a year of income (in this subsection called the 'current year of
income') in respect of an amount of allowable capital expenditure incurred by
the taxpayer is the amount calculated using the following formula:
Unrecouped expenditure
Statutory factor
where:
'Unrecouped expenditure' means so much of that expenditure as is unrecouped
as at the end of the current year of income;
'Statutory factor' means whichever is the lesser of the following numbers:
a number equal to the difference between:
20; and
the number of years of income (if any) preceding the current year of
income in respect of which a deduction has been allowed or is allowable, or,
but for the operation of subsection (5), would have been allowed or would be
allowable, under subsection (1) in respect of that amount of expenditure;
a number equal to the number of whole years in the estimated life of
the quarry or proposed quarry on the quarrying property, or, if there is more
than one such quarry, of the quarry that has the longer or longest estimated
life, as at the end of the current year of income.
"(3) For the purposes of subsection (2), the amount of the allowable capital
expenditure incurred by a taxpayer that is unrecouped as at the end of a year
of income (in this subsection called the 'current year of income') is the
amount calculated by deducting from the amount of that allowable capital
expenditure the sum of:
any part of that allowable capital expenditure that:
has been allowed or is allowable, or, but for the operation of
subsection (5), would have been allowed or would be allowable, as a deduction
under subsection (1) in respect of a year of income preceding the current year
of income; or
was incurred on property (not being property in respect of which a
notice has been given to the Commissioner under section 122JD by the taxpayer
and a person who acquired the property from the taxpayer):
that has been disposed of, lost or destroyed; or
the use of which by the taxpayer for eligible purposes has been
otherwise terminated;
and has not been allowed and is not allowable as a deduction under subsection
(1) in respect of a year of income preceding the current year of income; and
so much of any amounts specified in notices given to the Commissioner
under section 122JD in relation to the acquisition from the taxpayer, during
the current year of income or a year of income preceding the current year of
income, of a quarrying or prospecting right or quarrying or prospecting
information as:
is attributable to that allowable capital expenditure; and
has not been allowed and is not allowable as a deduction under
subsection (1) in respect of a year of income preceding the current year of
income.
"(4) For the purposes of subparagraphs (3) (a) (ii) and (3) (b) (ii), an
amount that would have been allowed or allowable as a deduction under
subsection (1) but for the operation of subsection (5) is to be taken to have
been allowed or to be allowable as such a deduction.
"(5) Subject to subsection (6):
the amount, or the total of the amounts, of the deduction or deductions
allowable under subsection (1) in respect of a year of income (including any
amount that is taken to be a deduction so allowable because of subsection (9))
must not exceed an amount equal to so much of the assessable income of the
year of income as remains after deducting all allowable deductions (other than
deductions allowable under this section, under section 122DG, under section
122J or under section 122JF); and
where the total of the amounts of 2 or more deductions that would be
allowable under this section but for this subsection exceeds the maximum
amount determined in accordance with this subsection, those deductions are to
be reduced respectively by amounts proportionate to those deductions and equal
in total to the excess.
"(6) A taxpayer may elect, in relation to a year of income specified in the
election, that subsection (7) is to apply in relation to all allowable capital
expenditure in relation to the taxpayer.
"(7) Where:
a taxpayer makes an election under subsection (6) in relation to
expenditure of a kind referred to in that subsection in relation to a year of
income; and
but for this subsection, subsection (5) would apply to limit or reduce
the amount of a deduction otherwise allowable under subsection (1) in relation
to the year of income in relation to an amount of expenditure of that kind;
subsection (5) does not apply to limit or reduce the amount of the deduction.
"(8) Where, apart from subsection (7), subsection (5) would apply to limit
or reduce the amount of a deduction otherwise allowable in relation to a year
of income in relation to an amount of expenditure in respect of which a
taxpayer has not made an election under this section in relation to the year
of income, nothing in subsection (7) affects the application of subsection (5)
in relation to that year of income in relation to that amount.
"(9) Subject to subsections (10) and (11), where the whole or a part of a
deduction in respect of a year of income is disallowed under subsection (5),
that whole or part is taken to be a deduction that is allowable under
subsection (1) in respect of the next succeeding year of income.
"(10) Where:
an amount of allowable capital expenditure was incurred by a taxpayer
on property (not being property in respect of which a notice has been given to
the Commissioner under section 122JD) that, during a year of income, has been
disposed of, lost or destroyed or the use of which by the taxpayer for
eligible purposes has been otherwise terminated; and
the whole or a part of an amount (which whole or part is in this
subsection called the 'attributable amount') in respect of which a deduction
would, but for this subsection, be allowable to the taxpayer in that year of
income or in a succeeding year of income because of the operation of
subsection (9) is attributable to the amount referred to in paragraph (a) of
this subsection;
a deduction is not allowable to the taxpayer in respect of the attributable
amount.
"(11) Where:
an amount is specified in a notice given to the Commissioner under
section 122JD in relation to the acquisition from a taxpayer, during a year of
income, of a quarrying or prospecting right or quarrying or prospecting
information; and
the whole or a part of an amount (which whole or part is in this
subsection called the 'attributable amount') in respect of which a deduction
would, but for this subsection, be allowable to the taxpayer in that year of
income or in a succeeding year of income because of the operation of
subsection (9) is attributable to the amount referred to in paragraph (a) of
this subsection; a deduction is not allowable to the taxpayer in respect of
the attributable amount.
"(12) Where:
a taxpayer has incurred allowable capital expenditure on property the
use of which by the taxpayer for eligible purposes has been terminated; and
the property has come into use by the taxpayer for purposes for which
allowable capital expenditure may be incurred;
so much of the first-mentioned expenditure as the Commissioner determines is
to be taken, for the purposes of this section, to have been incurred by the
taxpayer on that property, on the day on which that property so came into use
by the taxpayer, for the purposes for which that property so came into use.
"(13) Where, having regard to the information in the Commissioner's
possession, the Commissioner is not satisfied that the estimated life of a
quarry or a proposed quarry as made by the taxpayer is a reasonable estimate,
the estimated life is to be taken, for the purposes of paragraph (2) (b), to
be such period as the Commissioner considers reasonable.
Exploration and prospecting expenditure
"122JF. (1) Subject to this section, expenditure incurred by the taxpayer
after 15 August 1989 and during a year of income on exploration or prospecting
in Australia for materials obtainable by eligible quarrying operations is an
allowable deduction.
"(2) Subject to subsection (4), the amount of the deduction allowable under
this section in respect of expenditure incurred during the year of income is
not to exceed an amount equal to so much of the assessable income of the year
of income as remains after deducting all allowable deductions, other than
deductions allowable under this section or under section 122J.
"(3) A taxpayer may elect, in relation to a year of income specified in the
election, that the limit in subsection (2) is not to apply in relation to
actual expenditure in relation to the taxpayer in relation to the year of
income.
"(4) Where:
a taxpayer makes an election under subsection (3) in relation to a year
of income; and
but for this subsection, subsection (2) would apply to limit the amount
of the deduction otherwise allowable under this section in relation to
expenditure incurred by the taxpayer during the year of income;
the following provisions have effect:
subsection (2) does not apply in relation to expenditure incurred by
the taxpayer during the year of income;
the deduction allowable under this section in respect of any deemed
expenditure in relation to the taxpayer in relation to the year of income is
an amount calculated using the following formula:
Reduced assessable income X Deemed expenditure
Deemed expenditure + Actual expenditure
where:
'Reduced assessable income' means an amount equal to the assessable income
of the taxpayer of the year of income, reduced by the sum of all deductions
allowable from that assessable income, other than deductions allowable under
this section;
'Deemed expenditure' means the number of whole dollars in the amount of the
deemed expenditure in relation to the taxpayer in relation to the year of
income;
'Actual expenditure' means the number of whole dollars in the amount of the
actual expenditure in relation to the taxpayer in relation to the year of
income.
"(5) For the purposes of subsections (3) and (4):
a reference to actual expenditure in relation to a taxpayer in relation
to a year of income is a reference to expenditure of a kind referred to in
subsection (1) incurred by the taxpayer during the year of income, other than
deemed expenditure in relation to the taxpayer in relation to the year of
income; and
a reference to deemed expenditure in relation to a taxpayer in relation
to a year of income is a reference to expenditure of a kind referred to in
subsection (1) that is taken by subsection (6) to have been incurred by the
taxpayer during the year of income.
"(6) Where the amount of the expenditure of the kind referred to in
subsection (1) that was incurred during the year of income (including any
expenditure that is taken to have been incurred during the year of income by
any previous application or applications of this subsection) exceeds the
amount of the deduction allowable under this section in respect of that
expenditure in respect of the year of income, the excess amount is to be
taken, for the purposes of subsection (1), to have been incurred by the
taxpayer during the first subsequent year of income in which the taxpayer
derives assessable income.
"(7) A deduction is not allowable under this section in respect of
expenditure incurred during the year of income unless:
the Commissioner is satisfied that, during the year of income, the
taxpayer carried on, or proposed to carry on, eligible quarrying operations;
or
the Commissioner is satisfied that:
during the year of income, the taxpayer carried on a business of, or a
business that included, exploration or prospecting in Australia for materials
obtainable by eligible quarrying operations; and
the expenditure was necessarily incurred in carrying on that
business.
"(8) Where:
an amount of income derived by the taxpayer from the sale, transfer or
assignment of rights to mine in a particular area in Australia is or has been
exempt from income tax in a year of income (in this subsection called the
'year of sale') by virtue of paragraph 23 (pa); and
in relation to that area there are any excess amounts of expenditure
referred to in subsection (6) that have not been, and are not required to be,
taken, for the purposes of subsection (1), to have been incurred by the
taxpayer in the year of sale or in a prior year of income; subsection (6) does
not operate so as to require the taxpayer to be taken to have incurred, in any
year of income after the year of sale, any part of those excess amounts.
"(9) Where an amount specified in a notice given to the Commissioner under
section 122JD in relation to the acquisition from the taxpayer of a quarrying
or prospecting right or quarrying or prospecting information is attributable
to the whole or a part of an excess amount of expenditure referred to in
subsection (6), the excess amount or the part of the excess amount, as the
case may be:
is not, under subsection (6), to be taken to have been incurred by the
vendor in the year of income in which the transaction to which the notice
relates occurred or in any subsequent year of income; and
is not to be taken into account in calculating the amount to be
included in the allowable capital expenditure of a purchaser by virtue of a
notice given to the Commissioner under section 122JD in respect of a
transaction entered into after the first-mentioned transaction.
"(10) A person may elect that this subsection is to apply in respect of
expenditure on a unit of plant referred to in the election, being expenditure
incurred in the year of income specified in the election, and any further
expenditure on that unit of plant incurred in a subsequent year and, where
such an election has been made, expenditure to which the election applies is
not to be taken to be expenditure referred to in subsection (1).
"(11) The year of income specified in an election under subsection (10) must
be the first year of income in which the taxpayer incurs, in relation to the
unit of plant referred to in the election, expenditure, that, but for the
election would be expenditure referred to in subsection (1).
"(12) In this section:
'exploration or prospecting' means any one or more of the following:
geological mapping, geophysical surveys, systematic search for areas
containing quarry materials, and search by drilling or other means for quarry
materials within those areas;
search for quarry materials by drives, shafts, cross-cuts, winzes,
rises and drilling;
but does not include operations in the course of working a quarrying property.
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 23
Disposal, loss, destruction or termination of use of property
23. Section 122K of the Principal Act is amended:
by inserting in subsection (1) "or eligible purposes" after "prescribed
purposes";
by inserting in subsection (4) the following definitions:
" 'eligible purposes' has the same meaning as in Subdivision B;
'mining or prospecting right' has the same meaning as in Subdivision a;
'prescribed purposes' has the same meaning as in Subdivision A;
'property' includes:
a mining or prospecting right; or
a quarrying or prospecting right;
'quarrying or prospecting right' has the same meaning as in Subdivision B;".
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 24
Transactions between persons not at arm's length
24. Section 122L of the Principal Act is amended:
(a) by inserting in paragraph (a) "or a quarrying or prospecting right"
after "mining or prospecting right";
(b) by adding at the end the following subsection:
"(2) In this section:
'mining or prospecting right' has the same meaning as
in Subdivision A;
'quarrying or prospecting right' has the same meaning
as in Subdivision B.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 25
Deductions not allowable under other provisions
25. Section 122N of the Principal Act is amended:
any losses under the same subsection are to be taken into account in
the order in which they were incurred.'';
(d) by inserting in subsection (3) "or (1A)'' after "subsection (1)'';
by omitting from subsection (5) "subsection (1)'' and substituting
"subsections (1) and (1A)";
(f) by inserting in subsection (7) the following definitions:
" 'post-1989 year of income' means the year of income
commencing on 1 July 1989 or any later year of income;
'pre-1990 year of income' means any year of income
before the year of income commencing on 1 July 1989.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 42
Interpretation
42. Section 160APA of the Principal Act is amended by inserting the
following definitions:
" 'arrangement' means:
any agreement, arrangement, understanding, promise or undertaking,
whether express or implied, and whether or not enforceable, or intended to be
enforceable, by legal proceedings; and
any scheme, plan, proposal, action, course of action or course of
conduct, whether unilateral or otherwise;
'dividend streaming arrangement', in relation to a company (in this
definition called the 'first company'), means an arrangement where:
the first company entered into or carried out the arrangement or any
part of the arrangement; and
both of the following conditions are satisfied:
a shareholder in the first company (in this definition called the
'first shareholder') is empowered (either unconditionally or on the fulfilment
of a condition) to exercise any choice or selection;
the exercise of the choice or selection, or the failure to exercise
the choice or selection, has the effect of determining, to any extent, any or
all of the following:
whether the first company will pay an unfranked dividend or a partly
franked dividend (which unfranked dividend or partly franked dividend is in
this sub-subparagraph called the 'scheme dividend') to the first shareholder
in substitution, in whole or in part, for the payment, or proposed payment, of
one or more franked dividends, being dividends whose actual or proposed
franking percentage exceeds the franking percentage of the scheme dividend;
whether the first company will issue one or more tax-exempt bonus
shares to the first shareholder in substitution, in whole or in part, for the
payment, or proposed payment, of one or more franked dividends;
whether another company will pay an unfranked dividend or a partly
franked dividend to a shareholder in that other company in substitution, in
whole or in part, for the payment, or proposed payment, by the first company
of one or more franked dividends to the first shareholder;
whether the first company will pay one or more franked dividends to the
first shareholder in substitution, in whole or in part, for the payment, or
proposed payment, by another company of one or more unfranked dividends to a
shareholder in that other company;
'franking percentage' means:
in relation to a franked dividend - the percentage specified in the
declaration made under subsection 160AQF (1) in relation to the dividend; or
in relation to an unfranked dividend - 0%;
'partly franked dividend' means a dividend only part of which has been
franked in accordance with section 160AQF;
'tax-exempt bonus share', in relation to a company, means a share issued by
the company to a shareholder in the company where:
the amount or value of the share is debited against an amount standing
to the credit of a share premium account of the company; and
no part of the paid-up value of the share is a dividend; and
the share is issued:
as a bonus share; or
in the circumstances mentioned in subsection 6BA (1);
'unfranked dividend' means a dividend (including a dividend that is not a
frankable dividend) no part of which has been franked in accordance with
section 160AQF;".
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 43
43. After section 160APA of the Principal Act the following section is
inserted:
Arrangements
"160APAA. A reference in this Part to the carrying out of an arrangement by
a person includes a reference to the carrying out of an arrangement by a
person together with another person or other persons.''.
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 44
44. After section 160AQCA of the Principal Act the following section is
inserted:
Dividend streaming arrangements
"160AQCB. (1) Where:
on a particular day after 30 June 1990, a company (in this subsection
called the 'debit company') pays an unfranked dividend or a partly franked
dividend (which unfranked dividend or partly franked dividend is in this
subsection called the 'scheme dividend') to a shareholder in the debit
company; and
the scheme dividend was paid:
under a dividend streaming arrangement in relation to the debit
company; and
in substitution, in whole or in part, for the payment, or proposed
payment, of one or more franked dividends (in this subsection called the
'substituted dividends'), being dividends whose actual or proposed franking
percentage exceeds the franking percentage of the scheme dividend;
there arises on that day a franking debit of the debit company equal to the
amount calculated using the following formula, as reduced by the amount (if
any) of the franking debit of the company arising under section 160AQB in
respect of the payment of the scheme dividend:
X Substituted franking percentage
where:
'Scheme dividend' means the amount of the scheme dividend;
'Substituted franking percentage' means the actual or proposed franking
percentage, or the greatest actual or proposed franking percentage, of the
substituted dividends.
"(2) Where:
on a particular day after 30 June 1990, a company (in this subsection
called the 'debit company') issues one or more tax-exempt bonus shares (in
this subsection called the 'scheme bonus shares') to a shareholder in the
debit company; and
the scheme bonus shares were issued:
under a dividend streaming arrangement in relation to the debit
company; and
in substitution, in whole or in part, for the payment, or proposed
payment, of one or more franked dividends (in this subsection called the
'substituted dividends');
there arises on that day a franking debit of the debit company equal to the
actual or proposed franked amount, or the sum of the actual or proposed
franked amounts, of the substituted dividends.
"(3) Where:
on a particular day after 30 June 1990, a company (in this subsection
called the 'linked company') pays an unfranked dividend or a partly franked
dividend (which unfranked dividend or partly franked dividend is in this
subsection called the 'linked dividend') to a shareholder in the linked
company; and
the linked dividend was paid:
under a dividend streaming arrangement in relation to another company
(in this subsection called the 'debit company'); and
in substitution, in whole or in part, for the payment, or proposed
payment, by the debit company of one or more franked dividends (in this
subsection called the 'substituted dividends') to a shareholder in the debit
company;
there arises on that day a franking debit of the debit company equal to the
amount calculated using the formula:
Linked dividend X Substituted franking percentage
where:
'Linked dividend' means the amount of the linked dividend;
'Substituted franking percentage' means the actual or proposed franking
percentage, or the greatest actual or proposed franking percentage, of the
substituted dividends.
"(4) Where:
on a particular day after 30 June 1990, a company (in this subsection
called the 'debit company') pays one or more franked dividends (in this
subsection called the 'scheme dividends') to one or more shareholders in the
debit company; and
the scheme dividends were paid:
under a dividend streaming arrangement in relation to the debit
company; and
in substitution, in whole or in part, for the payment, or proposed
payment, by another company of one or more unfranked dividends (in this
subsection called the 'substituted dividends') to one or more shareholders in
that other company;
there arises on that day a franking debit of the debit company equal to the
sum of the following amounts:
to the extent that the substituted dividends comprise the whole or a
part of a common issue of shares covered by paragraph (c) of the definition of
'dividend' in subsection 6 (1) - the sum of the actual or proposed amounts of
the dividends to which that common issue relates;
to the extent that the substituted dividends:
do not consist of shares issued by the other company; and
comprise the whole or a part of a common series of distributions
covered by paragraph (a) of the definition of 'dividend' in subsection 6 (1);
the sum of the actual or proposed amounts of the dividends to which those
distributions relate;
to the extent that paragraph (d) of this subsection does not apply and
the substituted dividends comprise the whole or a part of a common series of
credits covered by paragraph (b) of the definition of 'dividend' in subsection
6 (1) - the sum of the actual or proposed amounts of the dividends to which
those credits relate.
"(5) A reference in this section to a dividend streaming arrangement
includes a reference to a dividend streaming arrangement entered into before
the commencement of this section.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 45
Combined class of dividends to be equally franked
45. Section 160AQG of the Principal Act is amended by adding at the end the
following subsection:
"(3) This section does not apply in relation to a dividend paid by a company
if the payment of the dividend gives rise to a franking debit of the company
under section 160AQCB.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 46
Interpretation
46. Section 202A of the Principal Act is amended by omitting the definition
of "recently-arrived visitor to Australia".
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 47
Explanation of terms: investment, investor, investment body
47. Section 202D of the Principal Act is amended by omitting from column 1
of item 3 in the table in subsection (1) "a loan by a financial institution"
and substituting "a loan made in the ordinary course of the business of
providing business or consumer finance by a person who carries on that
business".
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 48
Quotation of tax file numbers in connection with investments
48. Section 202DB of the Principal Act is amended by adding at the end the
following subsection:
"(2) Where:
a person, at any time after the beginning of the phasing-in period for
this Division, holds an investment on behalf of another person; and
the first-mentioned person does not have a tax file number in his or
her capacity of trustee of a trust estate in relation to the investment;
the first-mentioned person may quote his or her tax file number to the
investment body in connection with the investment and, for the purposes of
this Part, that person is to be taken to have quoted the investor's tax file
number in connection with the investment.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 49
49. Section 202DD of the Principal Act is repealed and the following section
is substituted:
Investor excused from quoting tax file number in certain circumstances
"202DD. Where:
at a particular time a person becomes an investor in relation to an
investment to which this Part applies by virtue of acquiring shares in a
public company; and
at that time, the person has quoted, or is taken to have quoted, a tax
file number in connection with an existing investment consisting of a
shareholding in that company; and
the company has not, since the quotation of the number in connection
with the existing investment, informed the person that the company has lost
the person's tax file number;
the person is to be taken to have quoted a tax file number in connection with
the first-mentioned investment.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 50
Securities dealer to inform the investment body of tax file number
50. Section 202DE of the Principal Act is amended by omitting from paragraph
(b) "has informed" and substituting "informs".
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 51
Investments held jointly
51. Section 202DG of the Principal Act is amended by omitting subsection (2)
and substituting the following subsections:
"(2) Where more than 2 persons are jointly entitled to the property or
rights that constitute an investment to which this Part applies, all of the
persons are to be taken to have quoted their tax file numbers in connection
with the investment if and only if:
where one of those persons has a tax file number and is not an exempt
person in relation to the investment - that person has quoted that number, and
at least one of the other persons is, for the purposes of this Part, to be
taken to have quoted his or her tax file number, under this Division in
connection with the investment; or
where 2 or more of those persons have tax file numbers and are not
exempt persons in relation to the investment - at least 2 of those persons
have quoted their own tax file numbers under this Division in connection with
the investment; or
in any other case - at least 2 of those persons are, for the purposes
of this Part, to be taken to have quoted their tax file numbers under this
Division in connection with the investment.
"(2A) A reference in subsection (2) to an exempt person in relation to an
investment is a reference to a person who, for the purposes of this Part, is
to be taken to have quoted his or her tax file number under this Division in
connection with the investment although the person has not actually done so.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 52
Repeal of sections 202E and 202ED
52. Sections 202E and 202ED of the Principal Act are repealed.
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 53
53. Section 202EE of the Principal Act is repealed and the following section
is substituted:
Non-residents
"202EE. (1) For the purposes of this Part, where a non-resident is an
investor in relation to an investment to which this Part applies, the
non-resident is to be taken to have quoted the non-resident's tax file number
in connection with the investment:
if the non-resident becomes liable to pay withholding tax in respect of
income derived from the investment; or
if the non-resident would have become liable to pay withholding tax but
for the operation of paragraph 128B (3) (a), (b) or (ga), or subparagraph 128B
(3) (h) (iii) or (iv).
"(2) If:
a person mentioned in subsection (1) becomes a resident of Australia;
and
the person is, at that time, still an investor in relation to the
investment; and
the investment body concerned is not, within one month after that time,
informed of the person's tax file number or informed that the person has
become such a resident;
the person is guilty of an offence.
Penalty: $1,000.
"(3) Nothing in this section affects the person's liability to pay
withholding tax.".
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 54
54. Section 202EH of the Principal Act is repealed and the following section
is substituted:
Declarations under this Division to be retained in certain circumstances
"202EH. (1) The Commissioner may direct an investment body to retain
declarations, or declarations of a particular kind, made under this Division
for such time as is specified in the direction.
"(2) A direction mentioned in subsection (1) must be given to the investment
body in writing or by notice published in the Gazette.
"(3) An investment body that is retaining a declaration in accordance with
such a direction must, if required to do so by the Commissioner:
forward the declaration to the office of a Deputy Commissioner in
accordance with the Commissioner's directions; or
give to the Commissioner such information contained in the declaration
as the Commissioner specifies.''.
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 55
Duties of payers
55. Section 221YHZC of the Principal Act is amended:
(a) by inserting in subparagraph (1A) (c) (i) "and the investment body is
aware of the age of the investor" after "years of age";
(b) by adding at the end of sub-subparagraph (1A) (c) (ii) (a) "and";
(c) by omitting sub-subparagraph (1A) (c) (ii) (b);
(d) by omitting paragraph (1A) (f) and substituting the following
paragraph:
within 4 months after the end of each financial year or such longer
period as the Commissioner allows, give to the Commissioner a statement in a
form approved by the Commissioner, signed by the investment body, reconciling
the total of the amounts of all deductions made by the investment body during
that financial year from unattributed income in respect of Part VA investments
with the total of the amounts paid to the Commissioner under subsection
221YHZD (1A) in respect of those deductions.";
(e) by inserting in subsection (3) "or an investor" after "a non-resident";
(f) by inserting in subsection (4) "or an investor" after "a non-resident".
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 56
Deductions from dividends and interest
56. Section 221YL of the Principal Act is amended by inserting after
subsection (4) the following subsection:
"(4AA) This section does not apply in relation to a dividend or amount of
interest from which a deduction is required to be made under subsection
221YHZC (1A).".
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 57
Deductions to be forwarded to Commissioner etc.
57. Section 221YN of the Principal Act is amended by omitting from paragraph
(1) (b) "2 months" and substituting "4 months".
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 58
Interpretation
58. Section 251R of the Principal Act is amended:
(a) by omitting from subsection (3) "and (6)" and substituting ", (6), (6B),
(6C) and (6D)";
(b) by inserting after subsection (6) the following subsections:
"(6A) A reference in subsections (6B), (6C) and (6D) to an eligible
prescribed person in relation to a period is a reference to a person who
would, apart from subsections 251U (2) and (3), be taken to have been a
prescribed person, for the purposes of this Part and of any Act imposing levy,
during that period by virtue of paragraph 251U (1) (a), (b) or (c).
"(6B) For the purposes of this Part, where:
a person (in this subsection called the 'first person') was an eligible
prescribed person in relation to a period in a year of income; and
apart from this subsection, another person (in this subsection called
the 'leviable person') would be a dependant of the first person during that
period; and
levy is payable by the leviable person upon the taxable income of the
year of income;
the leviable person is not to be taken to have been a dependant of the first
person during that period.
"(6C) For the purposes of this Part, where:
a person (in this subsection called the 'first person') was an eligible
prescribed person in relation to a period in a year of income; and
another person (in this subsection called the 'spouse') was the spouse
of the first person during the whole of that period; and
the spouse was not an eligible prescribed person in relation to that
period; and
levy is payable by the spouse upon the taxable income of the year of
income; and
apart from this subsection, a child of both the first person and the
spouse would be a dependant of both the first person and the spouse during
that period;
that child is not to be taken to have been a dependant of the first person
during that period.
"(6D) Subject to subsection (6F), for the purposes of this Part, where:
a person (in this subsection and subsections (6E) to (6H) (inclusive)
called the 'first person') was an eligible prescribed person in relation to a
period in a year of income; and
another person (in this subsection called the 'spouse') was the spouse
of the first person during the whole of that period; and
the spouse was an eligible prescribed person in relation to that
period; and
apart from this subsection, levy would be payable by both the first
person and the spouse upon their respective taxable incomes of the year of
income; and
apart from this subsection, a child of both the first person and the
spouse would be a dependant of both the first person and the spouse during
that period; and
the first person and the spouse have entered into an agreement (in
subsections (6E) to (6H) (inclusive) called the 'family agreement') stating
that, for levy purposes, that child:
is not to be treated as a dependant of the first
person during that period; and
is to be treated as a dependant of the spouse
during that period;
that child is not to be taken to be a dependant of the first person during
that period.
"(6E) The family agreement must be entered into on or before the date of
lodgment of the return of income of the first person for the year of income
concerned or within such further time as the Commissioner allows.
"(6F) Subsection (6D) does not apply, and is to be taken never to have
applied, if the first person fails to retain the family agreement for the
period of 5 years commencing on the date of lodgment of the return of income
of the first person for the year of income concerned.
"(6G) Where the family agreement is lost or destroyed and the Commissioner
is satisfied that the first person has a document (in this subsection called
the 'substitute family agreement') that:
is a copy of the family agreement; or
properly records all the matters set out in the family agreement and
was in existence when the family agreement was lost or destroyed;
the substitute family agreement is to be taken, for the purposes of this
section, to be, and to have been at all times after the family agreement was
lost or destroyed, the family agreement.
"(6H) Where the family agreement is lost or destroyed and the Commissioner
is satisfied that:
the family agreement was lost or destroyed because of circumstances
beyond the control of the first person; and
subsection (6G) does not apply;
subsection (6F) does not apply and is to be taken never to have applied.
"(6j) Section 170 does not prevent the amendment of an assessment at any
time for the purposes of giving effect to subsection (6F), (6G) or (6H).".
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 59
Consequential amendments - losses
59. The Principal Act is amended as set out in Schedule 1.
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 60
Consequential amendments - quarrying
60. The Principal Act is amended as set out in Schedule 2.
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 61
Application of amendments
61. (1) In this section:
"amended Act" means the Principal Act as amended by this Act.
(2) The amendments made by paragraphs 6 (a) and (b) and sections 40 and 58
apply to assessments in respect of income of the year of income commencing on
1 July 1989 and of all subsequent years of income.
(3) The amendment made by paragraph 6 (c) applies to income derived on or
after 1 July 1990.
(4) The amendments made by sections 8 and 9 apply in relation to live stock
disposed of on or after 1 July 1987.
(5) Subparagraphs 78 (1) (a) (ci) and (cii) of the amended Act apply to
gifts made on or after 10 November 1989.
(6) The amendments made by section 38 apply in relation to declarations
relating to the financial year commencing on 1 July 1987 and in relation to
all subsequent financial years.
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 62
Transitional - Australian Wool Testing Authority
62. (1) In this section:
"amended Act" means the Principal Act as amended by this Act;
"AWTA" means the Australian Wool Testing Authority Limited, a company
incorporated in Victoria;
"changeover time" means the end of 30 June 1990.
(2) Expressions used in this section that are also used in part IIIA of the
amended Act have the same respective meanings as in that Part.
(3) Sections 57AH and 57AL of the amended Act, being those sections as they
continue to apply in spite of their repeal by the Taxation Laws Amendment Act
(No. 4) 1988, do not apply in relation to any unit of property of the AWTA.
(4) The following provisions of this section have effect where part IIIA of
the amended Act applies to the disposal of an asset owned by the AWTA at the
changeover time.
(5) If the market value of the asset at the changeover time is greater than
the amount that would be its indexed cost base if the AWTA disposed of it at
that time, then, for the purpose of determining under part IIIA of the amended
Act whether a capital gain accrues to the AWTA in respect of the disposal
referred to in subsection (4):
the AWTA is to be taken to have disposed of the asset at the changeover
time for a consideration equal to the amount of that indexed cost base; and
the AWTA is to be taken to have immediately re-acquired the asset for a
consideration equal to the market value of the asset at the changeover time;
and
the reference in subsection 160Z (3) of the amended Act to the day on
which the asset was acquired by the AWTA is to be taken to be a reference to
the day on which the asset was actually acquired by it.
(6) If the disposal referred to in subsection (4) takes place within 12
months of the actual acquisition of the asset, subsection (5) has effect as if
the references in that subsection to its indexed cost base were references to
its cost base.
(7) If the market value of the asset at the changeover time is less than the
amount that would be its reduced cost base if the AWTA disposed of it at that
time, then, for the purposes of determining under part IIIA of the amended Act
whether the AWTA incurred a capital loss in respect of the disposal referred
to in subsection (4):
the AWTA is to be taken to have disposed of the asset at the changeover
time for a consideration equal to the amount of that reduced cost base; and
the AWTA is to be taken to have immediately re-acquired the asset for a
consideration equal to the market value of the asset at the changeover time.
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 63
Transitional - declarations and notices under section 124ZADA of the Principal
Act
63. (1) In this section:
"amended Act" means the Principal Act as amended by this Act.
(2) For the purposes of the amended Act, a declaration or notice relating to
the financial year commencing on 1 July 1987 or a subsequent financial year
that was lodged or given under subsection 124ZADA (1), (4) or (5) of the
Principal Act before the commencement of this section has effect, and is to be
taken to have had effect, as if it had been lodged or given under the
corresponding provision of the amended Act.
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 64
Transitional - tax concessions for film investments
64. For the purposes of the application of Division 5 of Part III of the
Taxation Laws Amendment Act (No. 5) 1988 (in this section called the "1988
Act"):
the amendments of section 124ZAFA of the Principal Act made by this Act
are to be treated as if they had commenced immediately before the commencement
of that Division of the 1988 Act; and
the amendments made by paragraphs 23 (a) and (b) of the 1988 Act are to
be disregarded.
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 66
Principal Act
66. In this Part, "Principal Act" means the Sales Tax (Exemptions and
Classifications) Act 1935.*3*
*3* No. 60, 1935, as amended. For previous amendments, see No. 41, 1936; No.
78, 1938; No. 32, 1939; Nos. 29 and 76, 1940; No. 32, 1941; No. 6, 1942; Nos.
35 and 44, 1943; No. 31, 1944; No. 36, 1945; Nos. 12 and 67, 1946; No. 65,
1947; No. 42, 1948; No. 54, 1949; No. 37, 1950; No. 42, 1951; No. 44, 1952;
No. 53, 1953; No. 45, 1954; No. 5, 1956; No. 71, 1957; Nos. 17 and 92, 1959;
Nos. 65 and 88, 1960; No. 1 and 76, 1961; No. 4, 1962; No. 44, 1963; No. 30,
1965; Nos. 26 and 62, 1966; Nos. 21, 29 and 80, 1976; No. 78, 1970; Nos. 67
and 87, 1972; Nos. 17, 181 and 216, 1973; No. 24, 1975; No. 175, 1976; No.
107, 1978; Nos. 3, 94 and 157, 1979; No. 142, 1981; Nos. 64, 93 and 115, 1982;
Nos. 63, 84 and 136, 1983; Nos. 81, 123 and 165, 1984; Nos. 65 and 67, 1985;
Nos. 28, 76 and 98, 1986; Nos. 42, 135 and 140, 1987; Nos. 78, 89 and 152,
1988; Nos. 63 and 72, 1989; and No. 18, 1990.
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 67
Amendment of First Schedule
67. The First Schedule to the Principal Act is amended:
(a) by inserting after item 21 the following item:
"21A. Goods, being precious stones or semi-precious stones which: Nos. 5 to
9
are derived directly from mining operations
carried on outside Australia; and
have not been subject to any process or
treatment resulting in an alteration of the form, nature or condition of the
goods";
(b) by inserting after item 108A the following item:
"108B. (1) Coin that is lawfully current in a foreign country by virtue of a
law in force in that country Nos. 5 to 9
"108B. (2) Without limiting the meaning of 'foreign country', a reference in
sub-item (1) to a foreign country is to be read as including a reference to a
place that is a territory, dependency or colony (however described) of another
country".
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990
- SECT 68
Application of amendments
68. The amendments made by this Part apply in relation to transactions, acts
and operations effected or done in relation to goods after the commencement of
this Part.
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990 - SCHEDULE 1
Section 59
CONSEQUENTIAL AMENDMENTS RELATING TO LOSSES
PART 1
Subsection 80A (1):
Insert "79E, 79F," before "80, 80AAA and 80AA".
Subsection 80DA (1):
Insert "79E, 79F," before "80, 80AAA and 80AA".
Paragraph 80G (6) (a):
Insert "79E or" before "80".
Subparagraph 80G (6) (c) (i):
Insert "79E (3), 79F (6)," before "80 (2)".
Subsection 80G (7):
Insert "79E (3)," before "80 (2) or 80AA (4)".
Insert "79E (3), 79F (6)," before "80 (2), 80AAA
(7)".
Subsection 80G (8):
Insert "79F (6) or" before "80AAA (7)".
Omit "section 80AAA", substitute "section 79F or
80AAA, as the case requires,".
Paragraph 80G (10) (a):
Insert "79E, 79F," before "80, 80AAA".
Subsection 80G (10):
Insert "79E or" before "80 as is not allowable".
Insert "79E (3), 79F (6)," before "80 (2)".
Subsection 80G (11):
Insert "79F or" before "80AAA".
Subsection 80G (19):
Omit "section 80", substitute "section 79E".
Section 90 (definitions of "net income" and "partnership
loss"):
Insert "79E," before "80, 80AA".
Section 159GZZJ (paragraph (b) of the definition of
"notional
writing-down assumptions"):
Omit "section 80", substitute "sections 79E and 80".
Subsection 159GZZT (2):
Omit "subsection 80 (3)", substitute "the
definition of 'net exempt income' in subsection 79E (12) or
80 (3)".
Omit "in that subsection", substitute "in that
definition".
Subsection 160AF (8) (paragraph (b) of the definition of
"net foreign income"):
Insert "79E (6) or" before "80 (2C)".
Subsection 160ZC (5):
Omit "section 80", substitute "section 79E".
PART 2
The following provisions of the Principal Act are amended
by inserting "79E, 79F," before "80, 80AAA or 80AA"
(wherever occurring):
Subparagraph 50C (3) (d) (iv), paragraphs 50F (1) (c)
and 50H (2) (a) and (b), subsection 63A (10), section 79C,
subsection 80A (1), paragraph 80A (2) (a), subsections 80A
(3) and (5), paragraph 80B (5) (c), subsection 80DA (1),
paragraphs 80DA (6) (a), 80E (1) (a) and 80E (2) (b),
section 80f, subsection 80G (6), paragraph 82AC (b),
subsections 82KH (1BA), 95 (1) (definition of "net
income"), 105A (11), 110 (1) (definition of "prior year
loss deduction") and 116E (1) (definition of "prior year
loss deduction") and subparagraphs 124AE (e) (i) and (ii).
TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990 - SCHEDULE 2
Section 60
CONSEQUENTIAL AMENDMENTS RELATING TO QUARRYING
PART 1
Subparagraph 50C (3) (d) (v):
Omit "122DG,", substitute "122DG, 122JE".
Subparagraph 50C (3) (d) (vi):
Omit "122J or", substitute "122J, 122JF or".
Paragraph 50F (2) (b):
Omit "122J,", substitute "122J, 122JE, 122JF,".
Paragraph 50F (5) (b):
Omit "122J,", substitute "122J, 122JE, 122JF,".
Paragraph 50G (1) (ba):
Omit "122J,", substitute "122J, 122JE, 122JF,".
Paragraph 50G (2) (q):
Omit "122J or", substitute "122J, 122JE, 122JF or".
Subparagraph 50G (2) (r) (ii):
Omit "123A", substitute "123A or 123BD".
Subparagraph 50G (2) (r) (iii):
Omit "123A", substitute "123A or 123BD".
Paragraph 50G (2) (s):
Omit "123A", substitute "123A or 123BD".
Paragraph 80G (10) (c):
Omit "or 122J", substitute ", 122J, 122JE or
122JF".
Omit "122J,", substitute "122J, 122JE, 122JF,".
Subsection 82AM (2):
Omit "122J, 123b", substitute "122J, 122JF, 123b,
123BE,".
Section 159GZZJ (paragraph (a) of the definition of
"notional writing-down assumptions"):
Omit "122P", substitute "122JA".
Subsection 170 (10):
Omit "section 122T, subsection 123A (2), 123A (3)",
substitute "subsection 122JD (2), section 122T, subsection
123A (2) or (3), 123BD (4) or (5)".
PART 2
The following provisions of the Principal Act are amended
by omitting "this Division" (wherever occurring) and
substituting "this Subdivision":
Sections 122, 122A, 122B, 122C, 122DA, 122DC, 122DE,
123, 123b and 123BB.
NOTE ABOUT SECTION HEADING
When section 159GZZT of the Income Tax Assessment Act 1936 is amended by
this Act, the heading to that section is altered by inserting "79E," before
"80".
The
Act No. 57, 1990 amended as indicated in the Tables below.
Act | Number and year | Date of Assent | Date of commencement | Application, saving or transitional provisions |
57, 1990 | 16 June 1990 | |||
4, 1991 | 8 Jan 1991 | S. 39: 16 June 1990 ( | — | |
75, 2010 | 28 June 2010 | Schedule 6 (item 42): 29 June 2010 | — |
am. = amended rep. = repealed rs. = repealed and substituted | |
Provision affected | How affected |
S. 4.......................................... | am. No. 4, 1991 |
S. 65........................................ | rep. No. 75, 2010 |
0
0
0