Advanced Search

Income Tax Assessment Amendment Act 1984

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$40 per month.
INCOME TAX ASSESSMENT AMENDMENT ACT 1984 No. 14, 1984
INCOME TAX ASSESSMENT AMENDMENT ACT 1984 No. 14 of 1984 - LONG TITLE
An Act to amend the law relating to income tax INCOME TAX ASSESSMENT AMENDMENT ACT 1984 No. 14 of 1984 - SECT 1 Short title, &c.
(Assented to 12 April 1984) 1. (1) This Act may be cited as the Income Tax Assessment Amendment Act 1984. (2) The Income Tax Assessment Act 1936*1* is in this Act referred to as the Principal Act. *1* No. 27, 1936, as amended. For previous amendments, see No. 88, 1936; No. 5, 1937; No. 46, 1938; No. 30, 1939; Nos. 17 and 65, 1940; Nos. 58 and 69, 1941; Nos. 22 and 50, 1942; No. 10, 1943; Nos. 3 and 28, 1944; Nos. 4 and 37, 1945; No. 6, 1946; Nos. 11 and 63, 1947; No. 44, 1948; No. 66, 1949; No. 48, 1950; No. 44, 1951; Nos. 4, 28 and 90, 1952; Nos. 1, 28, 45 and 81, 1953; No. 43, 1954; Nos. 18 and 62, 1955; Nos. 25, 30 and 101, 1956; Nos. 39 and 65, 1957; No. 55, 1958; Nos. 12, 70 and 85, 1959; Nos. 17, 18, 58 and 108, 1960; Nos. 17, 27 and 94, 1961; Nos. 39 and 98, 1962; Nos. 34 and 69, 1963; Nos. 46, 68, 110 and 115, 1964; Nos. 33, 103 and 143, 1965; Nos. 50 and 83, 1966; Nos. 19, 38, 76 and 85, 1967; Nos. 4, 60, 70, 87 and 148, 1968; Nos. 18, 93 and 101, 1969; No. 87, 1970; Nos. 6, 54 and 93, 1971; Nos. 5, 46, 47, 65 and 85, 1972; Nos. 51, 52, 53, 164 and 165, 1973; No. 216, 1973 (as amended by No. 20, 1974); Nos. 26 and 126, 1974; Nos. 80 and 117, 1975; Nos. 50, 53, 56, 98, 143, 165 and 205, 1976; Nos. 57, 126 and 127, 1977; Nos. 36, 57, 87, 90, 123, 171 and 172, 1978; Nos. 12, 19, 27, 43, 62, 146, 147 and 149, 1979; Nos. 19, 24, 57, 58, 124, 133, 134 and 159, 1980; Nos. 61, 92, 108, 109, 110, 111, 154 and 175, 1981; Nos. 29, 38, 39, 76, 80, 106 and 123, 1982; and Nos. 14, 25, 39, 49, 51, 54 and 103, 1983. INCOME TAX ASSESSMENT AMENDMENT ACT 1984 No. 14 of 1984 - SECT 2 Commencement
2. This Act shall come into operation on the day on which it receives the Royal Assent. INCOME TAX ASSESSMENT AMENDMENT ACT 1984 No. 14 of 1984 - SECT 3 Exemption of certain pensions
3. (1) Section 23AD of the Principal Act is amended by omitting paragraph (c) of the definition of "excepted payment" in sub-section (1) and substituting the following paragraph:
"(c) a payment of a benefit or allowance payable to or in respect of a person in accordance with Part VII of the Social Security Act 1947, other than a payment of special benefit under Division 6 of that Part that is made- (i) in relation to an occurrence that the Director-General of Social Security considers to be a major disaster that has directly affected a substantial number of people; and (ii) in respect of the first 2 weeks of eligibility of the person for payment of that benefit,". (2) The amendment made by sub-section (1) applies to payments made on or after 17 February 1983. INCOME TAX ASSESSMENT AMENDMENT ACT 1984 No. 14 of 1984 - SECT 4 Exemption of certain film income
4. (1) Section 23H of the Principal Act is amended- (a) by omitting sub-section (4) and substituting the following sub-sections: "(4) For the purposes of this section, the unrecouped capital expenditure of a taxpayer in relation to a film as at the end of a year of income (in this sub-section referred to as the 'relevant year of income') is- (a) where all the deductible moneys expended by the taxpayer are deductible 150% moneys-the amount (if any) remaining after deducting the previously recouped amount from an amount equal to 50% of the deductible moneys; (b) where all the deductible moneys expended by the taxpayer are deductible 133% moneys-the amount (if any) remaining after deducting the previously recouped amount from an amount equal to 33% of the deductible moneys; and (c) where the deductible moneys expended by the taxpayer are in part deductible 150% moneys and in part deductible 133% moneys-the amount (if any) remaining after deducting the previously recouped amount from the sum of- (i) 50% of the deductible 150% moneys; and (ii) 33% of the deductible 133% moneys. "(4A) For the purposes of the application of sub-section (4) in ascertaining the amount of the unrecouped capital expenditure of a taxpayer in relation to a film as at the end of a year of income (in this sub-section referred to as the 'relevant year of income')- 'deductible moneys' means capital moneys expended by the taxpayer, in the relevant year of income or a preceding year of income, in producing, or by way of contribution to the cost of producing, the film, being moneys in respect of which a deduction has been allowed or is allowable, or deductions have been allowed or are allowable, to the taxpayer under section 124ZAF or 124ZAFA;
Back to Top
'deductible 133% moneys' means deductible moneys in respect of which the deduction allowed or allowable under section 124ZAF or 124ZAFA is an amount equal to 133% of the deductible moneys; 'deductible 150% moneys' means deductible moneys in respect of which the deduction allowed or allowable under section 124ZAF or 124ZAFA is an amount equal to 150% of the deductible moneys; 'previously recouped amount' means the amount, or the sum of the amounts, to which section 26AG applies in relation to the taxpayer in relation to the film in relation to any year of income preceding the relevant year of income, to the extent to which that amount or those amounts are exempt from tax by virtue of this section."; (b) by omitting from sub-section (5) "sub-section (4)" and substituting "sub-sections (4) and (4A)"; and (c) by adding at the end of sub-section (5) "of the same amount, or the same respective amounts, as the deduction or deductions referred to in paragraph (a)". (2) The amendments made by sub-section (1) apply to- (a) where sub-section 23H (5) of the Principal Act, as amended by sub-section (1) of this section, would deem capital moneys to be expended by a taxpayer in a year of income (in this sub-section referred to as the "relevant year of income") preceding the year of income in which 24 August 1983 occurred and to be deductible 133% moneys within the meaning of section 23H of the Principal Act as amended by sub-section (1) of this section-assessments in respect of income of the taxpayer of the relevant year of income and of all subsequent years of income; and (b) in any other case-assessments in respect of income of the year of income in which 24 August 1983 occurred and of all subsequent years of income. INCOME TAX ASSESSMENT AMENDMENT ACT 1984 No. 14 of 1984 - SECT 5
5. After section 26AG of the Principal Act the following section is inserted: Bonuses and other amounts received in respect of certain short-term life assurance policies "26AH. (1) In this section, unless the contrary intention appears- 'agreement' means any agreement, arrangement or understanding, whether formal or informal, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings; 'assurance year', in relation to an eligible policy, means the period of 12 months commencing on, or on any anniversary of, the date of commencement of risk of the policy; 'date of commencement of risk', in relation to an eligible policy, means the date of commencement of the period in respect of which the first or only premium paid under the policy was paid or, if the first or only premium was not paid in respect of a period, the date on which that premium was paid; 'eligible period', in relation to an eligible policy, means the period of 10 years commencing on the date of commencement of risk of the policy; 'eligible policy' means a policy of life assurance in relation to which the date of commencement of risk is after 27 August 1982; 'eligible reckoning date', in relation to an eligible policy, means the date of commencement of an assurance year that, for the purposes of an application of sub-section (13), is the premium increase year referred to in that sub-section. "(2) Where a paid-up policy of life assurance is issued to a taxpayer in lieu of an eligible policy- (a) the paid-up policy shall, for the purposes of this section, be deemed to be a continuation of the eligible policy; and (b) no amount shall be taken for the purposes of sub-section (4) to have been re-invested or otherwise dealt with on behalf of the taxpayer or as he directs in connection with the issue of the paid-up policy to the taxpayer in lieu of the eligible policy. "(3) This section applies to any amount received after 27 August 1982 under an eligible policy. "(4) For the purposes of this section, but subject to sub-section (5), a taxpayer shall be taken to have received an amount under or in relation to an eligible policy although the amount is not actually paid to the taxpayer but is re-invested or otherwise dealt with on his behalf or as he directs.
"(5) Sub-section (4) does not apply in relation to an amount in relation to an eligible policy if the amount is re-invested or otherwise dealt with on behalf of the taxpayer or as the taxpayer directs so as to increase the amount that might reasonably be expected to be received under the eligible policy on a surrender or maturity of the eligible policy.
"(6) Where, during the eligible period in relation to an eligible policy, a taxpayer receives an amount (in this sub-section referred to as the 'relevant amount') under the policy as or by way of a bonus, being an amount that, but for this section, would not be included in the assessable income of the taxpayer of any year of income, the assessable income of the taxpayer of the year of income in which the relevant amount is received shall include- (a) if the relevant amount is received during the first 8 years of the
Back to Top
eligible period-an amount equal to the relevant amount; (b) if the relevant amount is received during the ninth year of the eligible period-an amount equal to two-thirds of the relevant amount; or (c) if the relevant amount is received during the tenth year of the eligible period-an amount equal to one-third of the relevant amount. "(7) Sub-section (6) does not apply to any amount received by a taxpayer in a year of income under an eligible policy where- (a) the amount is received in consequence of- (i) the death of the person on whose life the policy was effected; or (ii) an accident, illness or other disability suffered by the person on whose life the policy was effected; (b) the eligible policy is a superannuation policy within the meaning of Division 8; or (c) except where the policy was effected, purchased or taken on assignment with a view to it being forfeited, surrendered or otherwise terminated, or to it maturing, within 10 years-the amount was received by the taxpayer by reason of the forfeiture, surrender or other termination of the whole or a part of the policy in circumstances arising out of serious financial difficulties of the taxpayer. "(8) Where- (a) sub-section (6) would, but for this sub-section, apply to an amount (in this sub-section referred to as the 'relevant amount') received by a taxpayer by reason of the forfeiture, surrender or other termination of the whole or a part of an eligible policy; and (b) the Commissioner, having regard to- (i) the total amount of premiums paid under the eligible policy; (ii) the total amounts received by the taxpayer or by any other person under the eligible policy and the total amounts of bonuses included in the amounts so received; (iii) the amount of the surrender value of the eligible policy at the time when the forfeiture, surrender or other termination occurred; and (iv) such other matters as the Commissioner considers relevant, is of the opinion that it would be unreasonable for sub-section (6) to apply to the relevant amount or to a part of the relevant amount, sub-section (6) does not apply to the relevant amount, or to that part of the relevant amount, as the case may be. "(9) Where- (a) otherwise than as or by way of a bonus, a taxpayer receives an amount (in this sub-section referred to as the 'relevant amount') under an eligible policy; and (b) the Commissioner is of the opinion that the relevant amount or a part of the relevant amount represents the whole or part of- (i) a bonus that has accrued or has been declared in respect of the policy; or (ii) a bonus that can reasonably be expected to accrue in respect of the policy, the relevant amount or the part of the relevant amount, as the case may be, shall, for the purposes of sub-section (6), be deemed to have been received by the taxpayer under the policy as or by way of a bonus. "(10) Where- (a) sub-section (9) applies by reason that the Commissioner has formed an opinion under paragraph (9) (b) that the whole or a part of an amount received by a taxpayer represents the whole or a part of a bonus; and (b) the taxpayer subsequently receives an amount (in this sub-section referred to as the 'actual bonus'), being the whole or a part of the bonus, or of the part of the bonus, as the case may be, referred to in paragraph (a) of this sub-section, the following provisions have effect: (c) the operation of sub-section (9) is not affected by the receipt of the actual bonus; and (d) no part of the actual bonus shall be included in the assessable income of the taxpayer. "(11) Where, in relation to an eligible policy, a taxpayer receives an amount from the assurer, or from another person at the request of, or under an agreement with, the assurer, by way of an advance or loan in respect of which interest is not payable or in respect of which interest is payable at a rate less than the rate of interest that could reasonably be expected to be payable in respect of a loan of the same amount made on similar terms and conditions by the assurer or the other person, as the case may be, to a person with whom the assurer or that other person was dealing at arm's length, the amount shall, for the purposes of sub-section (9), be deemed to be an amount to which paragraph (9) (a) applies. "(12) Where an eligible policy, or any right to receive any benefits that have accrued, or will or may reasonably be expected to accrue, under an eligible policy, is sold or assigned in whole or in part by a taxpayer during the eligible period in relation to the policy-
Back to Top
(a) the amount of any consideration received by the taxpayer in respect of that sale or assignment shall be deemed to be an amount to which paragraph (9) (a) applies; and (b) sub-sections (9) and (10) apply in relation to that consideration as if 'represents' were omitted from paragraphs (9) (b) and (10) (a) and 'is attributable to' were substituted. "(13) Where the amount of the premiums payable under an eligible policy in relation to an assurance year (in this sub-section referred to as the 'premium increase year') exceeds by more than 25% the amount of the premiums payable under the policy in relation to the immediately preceding assurance year, the eligible period in relation to the policy shall, for the purposes of- (a) the application of sub-section (6) in relation to any amount received under the policy after the date of commencement of the premium increase year and before the first subsequent eligible reckoning date (if any) in relation to the eligible policy; and (b) the application of sub-section (12) in relation to any sale or assignment of the policy after the date of commencement of the premium increase year and before the first subsequent eligible reckoning date (if any) in relation to the eligible policy, be reckoned from the date of commencement of the premium increase year. "(14) This section has effect in relation to an eligible policy in relation to which the date of commencement of risk is on or before 7 December 1983 as if- (a) '10 years' were omitted from the definition of 'eligible period' in sub-section (1) and '4 years' were substituted; (b) '8 years', 'ninth year' and 'tenth year' were omitted from sub-section (6) and '2 years', 'third year' and 'fourth year' respectively were substituted; and (c) '10 years' were omitted from paragraph (7) (c) and '4 years' were substituted.". INCOME TAX ASSESSMENT AMENDMENT ACT 1984 No. 14 of 1984 - SECT 6 Divisible deductions
6. (1) Section 50G of the Principal Act is amended- (a) by omitting from paragraph (1) (a) "or 57AL" and substituting ", 57AL or 57AM"; and (b) by omitting from sub-section (2) "or 57AH" (wherever occurring) and substituting ", 57AH or 57AM". (2) The amendments made by sub-section (1) apply to assessments in respect of income of the year of income that commenced on 1 July 1982 and in respect of income of all subsequent years of income. INCOME TAX ASSESSMENT AMENDMENT ACT 1984 No. 14 of 1984 - SECT 7
7. (1) After section 51AC of the Principal Act the following section is inserted:
Deductions not allowable in respect of property used under certain leveraged arrangements "51AD. (1) In this section- 'arrangement' includes- (a) 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 (b) any scheme, plan, proposal, action, course of action or course of conduct, whether unilateral or otherwise; 'associate' has the same meaning in relation to a person as that expression has in relation to a person in section 26AAB; 'construction' includes manufacture; 'control' means effectively control; 'goods' includes whatever is capable of being owned or used; 'hire-purchase agreement', in relation to property, has the same meaning as that expression has in Subdivision B, but does not include such an agreement if, in the opinion of the Commissioner, the right under the agreement to purchase the property could reasonably be expected not to be exercised; 'lease', in relation to property, includes- (a) any arrangement under which a right to use the property is granted by the owner to another person; and (b) any arrangement under which a right to use the property, being a right derived directly or indirectly from a right referred to in paragraph (a), is granted by a person to another person, but does not include a hire-purchase agreement; 'owner', in relation to property, includes a person who has taken, and holds, the property on hire under a hire-purchase agreement; 'person' includes a person in the capacity of a trustee; 'prescribed time' means one o'clock in the afternoon, by standard time in the Australian Capital Territory, on 24 June 1982. "(2) In this section, a reference to the acquisition of property by a person is a reference to- (a) the person becoming the owner of the property; or
Back to Top
(b) the construction of the property for the person by another person or other persons on premises of the first-mentioned person. "(3) In this section, a reference to property being held for use includes a reference to property that is installed ready for use and held in reserve. "(4) Subject to sub-section (8), this section applies, in relation to a taxpayer, to property acquired or constructed by the taxpayer, being property acquired by the taxpayer under a contract entered into after the prescribed time or property constructed by the taxpayer, construction having commenced after that time, if- (a) at a time when the property is owned by the taxpayer, a person (which person is in this section referred to as the 'end-user') holds rights as lessee under a lease of the property, and- (i) in a case where the end-user is not a resident of Australia-while the lease is in force, the property is, or is to be, used by a person other than the taxpayer wholly or principally outside Australia; (ii) while the lease is in force, the property is, or is to be, used by a person other than the taxpayer otherwise than wholly and exclusively for the purpose of producing assessable income; or (iii) in a case where the property was acquired by the taxpayer-the property was, prior to its acquisition by the taxpayer, owned, and used or held for use, by the end-user; or (b) in a case to which paragraph (a) does not apply- (i) at a time when the property is owned by the taxpayer, the property is, or is to be, used (whether or not by the taxpayer) wholly or partly in or in connection with the production, supply, carriage, transmission or delivery of goods or the provision of services; and (ii) a person other than the taxpayer (which person is in this section also referred to as the 'end-user') controls, will control, or is or will be able to control, directly or indirectly, that use of the property, and- (A) in a case where the end-user is not a resident of Australia-that use of the property takes place, or is to take place, wholly or principally outside Australia; (B) in a case where some or all of the goods are, or are to be, produced for the end-user or supplied, carried, transmitted or delivered to or for the end-user, or some or all of the services are, or are to be, provided to or for the end-user-any of those goods or services are, or are to be, used by the end-user otherwise than wholly and exclusively for the purpose of producing assessable income; (C) in relation to the production, supply, carriage, transmission or delivery of goods, or the provision of services, as mentioned in sub-paragraph (i), the end-user derives, or is to derive, no income or income that is wholly or partly exempt from income tax; or (D) in a case where the property was acquired by the taxpayer-the property was, prior to its acquisition by the taxpayer, owned, and used or held for use, by the end-user. "(5) In sub-paragraph (4) (a) (iii) and sub-sub-paragraph (4) (b) (ii) (D), a reference to the end-user is a reference to the end-user, any of the end-users (where there are 2 or more end-users), any associate of the end-user or of any of those end-users, or any 2 or more such persons. "(6) For the purposes of sub-section (4), property shall be taken not to have been, prior to its acquisition by the taxpayer, owned, and used or held for use, by a person if- (a) the property was first used or held for use by the person at a time within 6 months before the acquisition of the property by the taxpayer; and (b) at that time there was in existence an arrangement that the property would be sold to another person and leased by that person to the first-mentioned person. "(7) Where- (a) the end-user consists of all or any of the partners in a partnership; and (b) a condition of paragraph (4) (a) or (b), as the case may be, is satisfied in relation to any of the partners in the partnership, that condition shall be taken to be satisfied in relation to all the partners in the partnership. "(8) This section does not apply to property, in relation to a taxpayer, unless the whole or a predominant part of the cost of the acquisition or construction, as the case may be, of the property by the taxpayer is financed directly or indirectly by a debt or debts (which debt is, or debts are, referred to in this sub-section as the 'non-recourse debt') and the rights of the creditor or creditors as against the taxpayer in the event of default in the repayment of principal or payment of interest- (a) are limited wholly or predominantly to any or all of the following: (i) rights (including the right to moneys payable) in relation to any or all of the following: (A) the property or the use of the property;
Back to Top
(B) goods produced, supplied, carried, transmitted or delivered, or services provided, by means of the property; (C) the loss or disposal of the whole or a part of the property or of the taxpayer's interest in the property; (ii) rights in respect of a mortgage or other security over the property; (iii) rights arising out of any arrangement relating to the financial obligations of the end-user of the property towards the taxpayer, being financial obligations in relation to the property; (b) are in the opinion of the Commissioner capable of being so limited, having regard to either or both of the following: (i) the assets of the taxpayer; (ii) any arrangement to which the taxpayer is a party; or (c) where paragraphs (a) and (b) do not apply-are limited by reason that not all of the assets of the taxpayer (not being assets that are security for debts of the taxpayer other than the non-recourse debt) would be available for the purpose of the discharge of the whole of the non-recourse debt (including the payment of interest) in the event of any action or actions by the creditor or creditors against the taxpayer arising out of that debt. "(9) Where- (a) property has been financed by a debt or debts as mentioned in sub-section (8); and (b) the rights of the creditor or creditors as against the taxpayer are, or are capable of being, limited as mentioned in that sub-section, the Commissioner may treat those rights as not being, or capable of being, so limited if he is of the opinion, having regard to the circumstances in which the debt was, or debts were, incurred and any other matters that he thinks relevant, that it would be reasonable to do so. "(10) Subject to sub-sections (11), (12), (13) and (15), where this section has applied to property, in relation to a taxpayer, at any time, the taxpayer shall be deemed not to have occupied or used the property, or held the property for use, at that time, for the purpose of producing assessable income or in carrying on a business for that purpose.
"(11) Where this section has applied to property, in relation to a taxpayer, at any time during a year of income by reason of sub-paragraph (4) (a) (ii) or sub-sub-paragraph (4) (b) (ii) (B), and for any part of that time the end-user held, occupied or used the property referred to in that sub-paragraph, or held it for use, or used any goods or services referred to in that sub-sub-paragraph, as the case may be, partly for the purpose of producing assessable income, the taxpayer shall be deemed, for the whole of the time during the year of income when this section applied to the property, to have held, occupied or used the property, or held it for use, for the purpose of producing assessable income, or in carrying on a business for that purpose, to the extent that the Commissioner considers appropriate.
"(12) Where this section has applied to property, in relation to a taxpayer, at any time during a year of income by reason of sub-sub-paragraph (4) (b) (ii) (C), and for any part of that time the end-user derived assessable income in relation to the production, supply, carriage, transmission or delivery of goods, or the provision of services, as mentioned in sub-paragraph (4) (b) (i), the taxpayer shall be deemed, for the whole of the time during the year of income when this section applied to the property, to have held, occupied or used the property, or held it for use, for the purpose of producing assessable income, or in carrying on a business for that purpose, to the extent that the Commissioner considers appropriate.
"(13) Where- (a) this section has applied to property, in relation to a taxpayer, at any time during a year of income by reason of sub-paragraph (4) (a) (ii) or sub-sub-paragraph (4) (b) (ii) (B) or (C); (b) the end-user referred to in that sub-paragraph or sub-sub-paragraph, as the case may be, consisted of all or any of the partners in a partnership; and (c) for any part of that time one or more of the partners in the partnership was a person in respect of whom, but for the operation of sub-section (7), that sub-paragraph or sub-sub-paragraph, as the case may be, would not have applied, the taxpayer shall be deemed, for the whole of the time during the year of income when this section applied to the property, to have held, occupied or used the property, or held it for use, for the purpose of producing assessable income, or in carrying on a business for that purpose, to the extent that the Commissioner considers appropriate. "(14) In considering, for the purposes of sub-section (13), the extent to which the taxpayer shall be deemed to have held, occupied or used property, or held it for use, for the purpose of producing assessable income, or in carrying on a business for that purpose, the Commissioner shall have regard- (a) to the interest or interests of the partner or partners referred to in paragraph (13) (c) in the net income, or the partnership loss, of the partnership of the year of income corresponding to the year of income referred to in paragraph (13) (a);
Back to Top
(b) the extent to which, for any part of the time referred to in paragraph (13) (a), a partner or partners other than the partner or partners referred to in paragraph (13) (c) held, occupied or used the property, or held it for use, or used the goods or services referred to in sub-sub-paragraph (4) (b) (ii) (B), as the case may be, for the purpose of producing assessable income; and (c) the extent to which, for any part of the time referred to in paragraph (13) (a), a partner or partners other than the partner or partners referred to in paragraph (13) (c) derived assessable income in relation to the production, supply, carriage, transmission or delivery of goods, or the provision of services, as mentioned in sub-paragraph (4) (b) (i). "(15) Notwithstanding anything contained in sub-sections (10), (11) and (13), at any time when this section applies to property by reason of sub-paragraph (4) (a) (ii), the property shall be deemed not to be held, occupied or used, or held for use, by the taxpayer for the purpose of producing assessable income, or in carrying on a business for that purpose, if, at that time- (a) 2 or more end-users hold rights as lessees under the lease of the property; (b) one or more of the end-users (which end-user is, or end-users are, referred to in this sub-section as the "exempt end-user") is a company, or are companies, the income of which is ordinarily exempt from income tax; (c) the property is, or is to be, used wholly or principally in or in connection with the conduct of operations or transactions of a kind that the exempt end-user ordinarily engages in; (d) the exempt end-user controls, will control, or is or will be able to control, directly or indirectly, that use of the property; and (e) in relation to those operations or transactions, the exempt end-user derives, or is to derive, no income or income that is exempt from income tax. "(16) Where a taxpayer has incurred expenditure for repairs to property to which this section applies or has applied in relation to the taxpayer and, but for this section, a deduction would be allowable under section 53 in respect of that expenditure, so much of the expenditure as the Commissioner considers appropriate shall be deemed not to be allowable, having regard to- (a) the period for which the taxpayer owned the property before the repairs were commenced and any part of that period during which this section applies or applied to the property in relation to the taxpayer; and (b) in a case to which sub-section (11), (12) or (13) applies or applied-the extent to which, for the time during the part of the period referred to in paragraph (a), the taxpayer was deemed to have held, occupied or used the property, or held it for use, for the purpose of producing assessable income, or in carrying on a business for that purpose. "(17) Where a taxpayer has incurred expenditure in borrowing money to finance the acquisition or construction of property to which this section applies or has applied in relation to the taxpayer and a deduction has been allowed, or would but for this section be allowable, under section 67 in relation to that expenditure, so much of the deduction as the Commissioner considers appropriate shall be deemed not to have been, or not to be, allowable, as the case may be, having regard to- (a) the period for which the money was borrowed or, by the operation of sub-section 67 (2), is deemed to have been borrowed and any part of that period during which this section applies, applied or, in the opinion of the Commissioner, will apply to the property; and (b) in a case to which sub-section (11), (12), or (13) applies or applied-the extent to which, for the time during the part of the period referred to in paragraph (a), the taxpayer is, or in the opinion of the Commissioner will be, deemed to have held, occupied or used the property, or held it for use, for the purpose of producing assessable income, or in carrying on a business for that purpose. "(18) Where a taxpayer has incurred expenditure for the preparation, registration and stamping of a lease, or of an assignment or surrender of a lease, of property to which this section applies or has applied in relation to the taxpayer and a deduction has been allowed, or would but for this section be allowable, under section 68 in respect of that expenditure, so much of the deduction as the Commissioner considers appropriate shall be deemed not to have been, or not to be, allowable, as the case may be, having regard to- (a) the period of the lease and any part of that period during which this section applies, applied or, in the opinion of the Commissioner, will apply to the property; and (b) in a case to which sub-section (11), (12) or (13) applies or applied-the extent to which, for the time during the part of the period mentioned in paragraph (a), the taxpayer is, or in the opinion of the Commissioner will be, deemed to have held, occupied or used the property, or held it for use, for the purpose of producing assessable income, or in carrying on a business for that purpose. "(19) Where- (a) the individual interest of a taxpayer in the net income of a
Back to Top
partnership has been or is to be included in the assessable income of the taxpayer of a year of income (in this sub-section referred to as the 'relevant year of income'), or the individual interest of a taxpayer in a partnership loss has been allowed or is allowable as a deduction from the assessable income of the taxpayer of a year of income (in this sub-section also referred to as "the relevant year of income"); (b) a deduction was taken into account in calculating that net income or partnership loss; (c) the deduction or a part of the deduction (which deduction or part of the deduction, as the case may be, is referred to in this sub-section as the 'relevant deduction') would not have been taken into account for the purpose of that calculation if this section applied in relation to particular property acquired or constructed by the partnership; (d) this section does not apply in relation to the property by reason only that the property was acquired by the partnership under a contract entered into at or before the prescribed time or was constructed by the partnership, construction having commenced at or before that time; and (e) the taxpayer became a partner in the partnership under a contract entered into by the taxpayer after the prescribed time, there shall be included in the assessable income of the taxpayer of the relevant year of income an amount that bears to the amount of the relevant deduction the same proportion as the individual interest of the taxpayer in that net income bears to that net income or, as the case requires, as the individual interest of the taxpayer in that partnership loss bears to that partnership loss. "(20) Where- (a) the individual interest of a taxpayer in the net income of a partnership has been or is to be included in the assessable income of the taxpayer of a year of income (in this sub-section referred to as the 'relevant year of income'), or the individual interest of a taxpayer in a partnership loss has been allowed or is allowable as a deduction from the assessable income of the taxpayer of a year of income (in this sub-section also referred to as "the relevant year of income"); (b) a deduction was taken into account in calculating that net income or partnership loss; (c) the deduction or a part of the deduction (which deduction or part of the deduction, as the case may be, is referred to in this sub-section as the 'relevant deduction') would not have been taken into account for the purpose of that calculation if this section applied in relation to particular property acquired or constructed by the partnership; (d) this section does not apply in relation to the property by reason only that the property was acquired by the partnership under a contract entered into at or before the prescribed time or was constructed by the partnership, construction having commenced at or before that time; (e) the taxpayer became a partner in the partnership under a contract entered into by the taxpayer before the prescribed time; and (f) after the prescribed time, the taxpayer made or agreed to make a contribution or contributions (which contribution is or contributions are in this sub-section referred to as the 'additional contribution') to the capital of the partnership in addition to any contribution or contributions to the capital of the partnership that, under a contract or contracts entered into at or before that time, he had made or agreed to make; and (g) by reason of making or agreeing to make the additional contribution, the individual interest of the taxpayer in that net income or partnership loss, being that individual interest expressed as a fraction of the aggregate of the individual interests of the partners in that net income or partnership loss, is greater than it would otherwise have been, there shall be included in the assessable income of the taxpayer of the relevant year of income an amount ascertained in accordance with the formula A(B - C), where- A is the amount of the relevant deduction; B is the individual interest of the taxpayer in that net income or partnership loss, being that individual interest expressed as a fraction of the aggregate of the individual interests of the partners in that net income or partnership loss; and C is the fraction that would be B if another partner, and not the taxpayer, had made or agreed to make the additional contribution.". (2) The amendment made by sub-section (1) applies to assessments in respect of income of the year of income in which 24 June 1982 occurred and of all subsequent years of income.
INCOME TAX ASSESSMENT AMENDMENT ACT 1984 No. 14 of 1984 - SECT 8 Special depreciation on plant
8. (1) Section 57AG of the Principal Act is amended by omitting from paragraph (2) (b) "or 57AL" and substituting ", 57AL or 57AM".
(2) The amendment made by sub-section (1) applies to assessments in respect of income of the year of income that commenced on 1 July 1982 and in respect of income of all subsequent years of income.
INCOME TAX ASSESSMENT AMENDMENT ACT 1984 No. 14 of 1984 - SECT 9
9. After section 57AL of the Principal Act the following section is inserted:
Back to Top
Special depreciation on trading ships "57AM. (1) In this section- 'commission', in relation to a trading ship, means put the ship into service, or hold the ship in reserve for the purpose of being put into service; 'commissioning date', in relation to a trading ship, means the date on which the ship is first commissioned; 'eligible date', in relation to an eligible Australian ship, means- (a) in the case of a new ship- (i) if the ship becomes an eligible Australian ship before the expiration of 90 days after the commissioning date of the ship-the commissioning date of the ship; or (ii) in any other case-the day on which the ship becomes an eligible Australian ship; (b) in the case of a post-July 1982 ship- (i) if the ship becomes an eligible Australian ship before the expiration of 90 days after the commencement of this section-the commissioning date of the ship; or (ii) in any other case-the day on which the ship becomes an eligible Australian ship; and (c) in the case of a pre-July 1982 ship- (i) if the ship becomes an eligible Australian ship before the expiration of 90 days after the commencement of this section-29 July 1982; or (ii) in any other case-the day on which the ship becomes an eligible Australian ship; 'Government ship' means a ship that is owned by the Commonwealth or a State or Territory, but does not include a ship that is owned by the Australian Shipping Commission; 'harbour' has the same meaning as in the Navigation Act 1912; 'lease', in relation to a trading ship, includes- (a) any scheme under which a right to use the ship is granted by the owner to another person; and (b) any scheme under which a right to use the ship, being a right derived directly or indirectly from a right referred to in paragraph (a), is granted by a person to another person, but does not include a hire-purchase agreement; 'manning notice' means a notice given by the Secretary under sub-section (22) in relation to a ship; 'new' means not having previously been either used by any person or acquired or held by any person for use by that person, but does not include reconditioned or wholly or mainly reconstructed;