Income Tax Assessment Act 1936
View history note
Hide history noteSubdiv B repealed by No 101 of 2006, s 3 and Sch 3 item 3, effective 1 January 2008.
Archived:
S 28 to 36 repealed as inoperative by No 101 of 2006 , s 3 and Sch 1 item 57, effective 14 September 2006. For application and savings provisions and for former wording see the CCH Australian Income Tax Legislation archive .
(Repealed by No 101 of 2006)
S 36AAA(17) amended by No 101 of 2006 , No 57 of 1990 and No 108 of 1981.
S 36AAA repealed by No 101 of 2006, s 3 and Sch 3 item 3, effective 1 January 2008. S 36AAA formerly read:
Subdivision
385-E
(Primary producer can elect to spread or defer tax on profit from forced disposal or death of live stock) of the
Income Tax Assessment Act 1997
deals with such a disposal or death.
SECTION 36AAA ALTERNATIVE ELECTION IN CASE OF DISPOSAL, DEATH OR COMPULSORY DESTRUCTION OF LIVE STOCK
36AAA(1AAA)
This section does not apply to a disposal or death of live stock on or after 1 July 1997.
Note:
S 36AAA(1AAA) and Note inserted by No 121 of 1997.
36AAA(1)
Where -
(a) in consequence of the loss or destruction of pastures or fodder by reason of fire, drought or flood, a taxpayer, a partnership or the trustee of a trust estate, in a year of income, disposes, by sale or otherwise, of live stock being assets of a primary production business carried on by the taxpayer, the partnership or the trustee, as the case may be, in Australia;
(b) the value of that live stock is, by virtue of subsection 36(1) , required to be included in the assessable income of the taxpayer, the partnership or the trust estate, as the case may be, of that year of income;
(c) it is established to the satisfaction of the Commissioner that the proceeds, if any, of the disposal 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 disposed of; and
(d) no election has been made under section 36 in relation to the disposal,
the taxpayer, the partnership or the trustee, together with each beneficiary entitled to make an election under section 36 in relation to the disposal, as the case may be, may, in lieu of any election that a person is entitled to make under section 36 in relation to the disposal, elect that the assessable income of the taxpayer, the partnership or the trust estate, as the case may be, of the year of income in which the live stock were disposed of shall be reduced by an amount equal to the profit on the disposal of the live stock.
S 36AAA(1) amended by No 101 of 2006 , s 3 and Sch 2 item 197, by substituting " primary production business " for " business of primary production " in para (a), effective 14 September 2006. For application and savings provisions see the CCH Australian Income Tax Legislation archive .
S 36AAA(1) amended by No 108 of 1981, No 80 of 1975 and No 164 of 1973.
36AAA(1AA)
Where:
(a) live stock, being assets of a primary production business 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
(b) 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
(c) there is a profit on the disposal of the live stock; and
(d) no election has been made under section 36AA in relation to that profit; and
(e) it is established to the satisfaction of the Commissioner that the proceeds of the 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.
S 36AAA(1AA) amended by No 101 of 2006 , s 3 and Sch 2 item 197, by substituting " primary production business " for " business of primary production " in para (a), effective 14 September 2006. For application and savings provisions see the CCH Australian Income Tax Legislation archive .
S 36AAA(1AA) inserted by No 57 of 1990
36AAA(1A)
Where -
(a) live stock, being assets of a primary production business carried on in Australia by a taxpayer, a partnership or the trustee of a trust estate -
(i) die by reason of a disease for the purpose of controlling or eradicating which provision is made by a law of the Commonwealth, of a State or of a Territory for or in relation to the compulsory destruction of live stock; or
(ii) are destroyed in pursuance of a law of the Commonwealth, of a State or of a Territory that makes provision for or in relation to the compulsory destruction of live stock for the purpose of controlling or eradicating a disease;
(b) the proceeds of the death of the live stock would, apart from this section, be included in the assessable income of the taxpayer, the partnership or the trust estate, of a year or years of income;
(c) there is a profit on the death of the live stock;
(d) no election has been made under section 36AA in relation to that profit; and
(e) it is established to the satisfaction of the Commissioner that the proceeds of the death of the live stock have been or will be applied by the taxpayer, the partnership or the trustee, as the case may be, wholly or principally in the purchase of live stock, or in the maintenance of breeding stock, for the purpose of replacing the live stock that died or were destroyed,
the taxpayer, the partnership or the trustee, together with each beneficiary entitled to make an election under section 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 shall apply in relation to that profit and in relation to the proceeds of the death of the live stock.
S 36AAA(1A) amended by No 101 of 2006 , s 3 and Sch 2 item 197, by substituting " primary production business " for " business of primary production " in para (a), effective 14 September 2006. For application and savings provisions see the CCH Australian Income Tax Legislation archive .
S 36AAA(1A) amended by No 108 of 1981 and inserted by No 124 of 1980.
36AAA(2)
Where an election has been made by a taxpayer, a partnership or the trustee of, or the trustee of and any beneficiaries in, a trust estate under subsection (1) or (1AA) in relation to the disposal of live stock or under subsection (1A) in relation to the death or destruction of live stock -
(a) if the election is an election under subsection (1), the assessable income of the taxpayer, the partnership or the trust estate, as the case may be, of the year of income to which the election relates shall be reduced by an amount equal to the profit on the disposal of the live stock;
(aaa) if the election is an election under subsection (1AA):
(i) 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
(ii) the assessable income of the taxpayer, the partnership or the trust estate, as the case may be, of the year of income to which the election relates is to be reduced by an amount equal to the profit on the disposal of the live stock;
(aa) if the election is an election under subsection (1A) -
(i) the whole of the proceeds of the death of the live stock to which the election relates (whenever received) shall be included in the assessable income of the taxpayer, the partnership or the trust estate, as the case may be, of the year of income to which the election relates and no part of those proceeds shall be included in the assessable income of the taxpayer, the partnership or the trust estate, as the case may be, of any other year of income; and
(ii) the assessable income of the taxpayer, the partnership or the trust estate, as the case may be, of the year of income to which the election relates shall be reduced by an amount equal to the profit on the death of the live stock;
(b) if, during the year of income to which the election relates or any of the next 5 succeeding years of income, the taxpayer, the partnership or the trustee, as the case may be, purchases live stock to replace any of the live stock to which the election relates, the purchase price of any animal included in the live stock so purchased shall, for the purposes of this Act, be deemed to be an amount equal to the consideration actually paid for the animal less -
(i) the amount applicable in relation to the animal under subsection (3); or
(ii) if the product of the number equal to the number of animals included in the live stock so purchased and the amount applicable in relation to each of those animals under subsection (3) exceeds the amount that is the reduced profit on the disposal or death of the live stock on the date of purchase - an amount that bears to the amount applicable in relation to the animal under subsection (3) the same proportion as that reduced profit on the disposal or death of the live stock bears to that product;
(c) if, in relation to the year of income to which the election under subsection (1), (1AA) or (1A) relates or any of the next 5 succeeding years of income, the taxpayer, the partnership or trustee, as the case may be, makes an election under subsection (4), there shall be included in the assessable income of the taxpayer, the partnership or the trust estate, as the case may be, of the year of income to which the election under subsection (4) relates the amount specified in the election; and
(d) there shall be included in the assessable income of the taxpayer, the partnership or the trust estate, as the case may be, of the last year of income of the 5 years of income next succeeding the year of income to which the election under subsection (1), (1AA) or (1A) relates the amount, if any, that is the reduced profit on the disposal or death of the live stock on the last day of that last year of income.
S 36AAA(2) amended by No 57 of 1990, No 108 of 1981, No 124 of 1980 and No 51 of 1973.
36AAA(2A)
Where -
(a) live stock (in this subsection referred to as the deceased live stock ), being assets of a primary production business carried on in Australia by a taxpayer, a partnership or the trustee of a trust estate -
(i) die by reason of bovine brucellosis or bovine tuberculosis; or
(ii) are destroyed pursuant to a law of the Commonwealth, of a State or of a Territory that makes provision for or in relation to the compulsory destruction of live stock for the purpose of controlling or eradicating bovine brucellosis or bovine tuberculosis; and
(b) an election under subsection (1A) has been made in relation to the death or destruction of the deceased live stock,
the following provisions have effect:
(c) subsection (2) does not apply in relation to the death or destruction of the deceased live stock;
(d) the whole of the proceeds of the death of the deceased live stock (whenever received) shall be included in the assessable income of the taxpayer, the partnership or the trust estate, as the case may be, of the year of income to which the election relates and no part of those proceeds shall be included in the assessable income of the taxpayer, the partnership or the trust estate, as the case may be, of any other year of income;
(e) the assessable income of the taxpayer, the partnership or the trust estate, as the case may be, of the year of income to which the election relates shall be reduced by an amount equal to the profit on the death of the deceased live stock;
(f) if, at a particular time (in this paragraph referred to as the purchase time ) during the year of income to which the election relates or any of the next 10 succeeding years of income, the taxpayer, the partnership or the trustee, as the case may be, purchases live stock (in this paragraph referred to as the replacement live stock ) to replace any of the deceased live stock, the purchase price of any animal included in the replacement live stock shall, for the purposes of this Act, be deemed to be an amount equal to the consideration actually paid for the animal reduced by -
(i) the amount calculated in accordance with the formula
A ,
Bwhere -
A is the reduced profit on the disposal or death of the deceased live stock immediately before the purchase time; and B is the number of the replacement live stock; or
whichever is the less;
(ii) the consideration actually paid for the animal,
(g) if, in relation to the year of income to which the election relates or any of the next 10 succeeding years of income, the taxpayer, the partnership or the trustee, as the case may be, makes an election under subsection (4A), there shall be included in the assessable income of the taxpayer, the partnership or the trust estate, as the case may be, of the year of income to which the election under subsection (4A) relates the amount specified in the election;
(h) there shall be included in the assessable income of the taxpayer, the partnership or the trust estate, as the case may be, of the last year of income of the 10 years of income next succeeding the year of income to which the election under subsection (1A) relates the amount (if any) that is the reduced profit on the death or destruction of the deceased live stock on the last day of that last year of income.
S 36AAA(2A) amended by No 101 of 2006 , s 3 and Sch 2 item 197, by substituting " primary production business " for " business of primary production " in para (a), effective 14 September 2006. For application and savings provisions see the CCH Australian Income Tax Legislation archive .
S 36AAA(2A) inserted by No 112 of 1986.
36AAA(3)
For the purposes of paragraph (2)(b), the amount applicable in relation to any animal (in this subsection referred to as the replacement animal ) included in live stock purchased by a taxpayer, partnership or trustee to replace live stock that were disposed of or that died or were destroyed, is -
(a) if the live stock in which the replacement animal is included are of the same species as that of the live stock replaced -
(i) an amount ascertained by dividing the profit on the disposal or death of live stock of that species by the number of live stock of that species that were disposed of or that died or were destroyed; or
whichever is the less;
(ii) the consideration actually paid by the taxpayer, the partnership or the trustee, as the case may be, for the replacement animal,
(b) if the live stock in which the replacement animal is included are not of the same species as that of the live stock replaced and paragraph (c) does not apply -
(i) an amount ascertained by dividing the profit on the disposal or death of live stock of the species of live stock that the live stock purchased replace by the number of live stock of that species that were disposed of or that died or were destroyed; or
whichever is the less; or
(ii) the consideration actually paid by the taxpayer, the partnership or the trustee, as the case may be, for the replacement animal,
(c) if the live stock in which the replacement animal is included are not of the same species as that of the live stock replaced and the consideration actually paid by the taxpayer, the partnership or the trustee, as the case may be, for the live stock purchased substantially exceeds the cost at which the live stock that were disposed of or that died or were destroyed could be replaced by live stock of the same species - such amount as the Commissioner determines as being reasonable in the circumstances, being an amount not greater than the consideration actually paid by the taxpayer, the partnership or the trustee, as the case may be, for the animal and not less than the amount that would be applicable in relation to the replacement animal under paragraph (a) if the live stock in which the replacement animal is included were of the same species as that of the live stock replaced.
S 36AAA(3) amended by No 108 of 1981, No 124 of 1980 and No 51 of 1973.
36AAA(4)
Where an election has been made by a taxpayer, a partnership or the trustee of, or the trustee of and any beneficiaries in, a trust estate under subsection (1), (1AA) or (1A) and, during the year of income to which the election relates or any of the next 5 succeeding years of income, the taxpayer, the partnership or the trustee, as the case may be, replaces by breeding any of the live stock that were disposed of or that died or were destroyed, the taxpayer, the partnership or the trustee, as the case may be, may elect that an amount is 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 in which the live stock are so replaced.
S 36AAA(4) amended by No 101 of 1992, No 57 of 1990, No 108 of 1981, No 124 of 1980 and No 51 of 1973.
36AAA(4A)
Where -
(a) live stock (in this subsection referred to as the deceased live stock ), being assets of a primary production business carried on in Australia by a taxpayer, a partnership or the trustee of a trust estate -
(i) die by reason of bovine brucellosis or bovine tuberculosis; or
(ii) are destroyed pursuant to a law of the Commonwealth, of a State or of a Territory that makes provision for or in relation to the compulsory destruction of live stock for the purpose of controlling or eradicating bovine brucellosis or bovine tuberculosis;
(b) an election under subsection (1A) has been made in relation to the death or destruction of the deceased live stock; and
(c) during the year of income to which the election relates or any of the next 10 succeeding years of income, the taxpayer, the partnership or the trustee, as the case may be, replaces, by breeding, any of the deceased live stock,
the following provisions have effect:
(d) subsection (4) does not apply in relation to the death or destruction of the deceased live stock;
(e) the taxpayer, the partnership or the trustee, as the case may be, may elect that there shall be included in the assessable income of the taxpayer, partnership or trust estate, as the case may be, of the year of income in which the deceased live stock are replaced such amount as is specified in the election.
S 36AAA(4A) amended by No 101 of 2006 , s 3 and Sch 2 item 197, by substituting " primary production business " for " business of primary production " in para (a), effective 14 September 2006. For application and savings provisions see the CCH Australian Income Tax Legislation archive .
S 36AAA(4A) inserted by No 112 of 1986.
36AAA(5)
Where -
(a) a taxpayer has made an election under subsection (1) or (1AA) in relation to the disposal of live stock or under subsection (1A) in relation to the death or destruction of live stock; and
(b) in any year of income -
(i) the taxpayer leaves Australia or appears to the Commissioner to be about to leave Australia;
(ii) the taxpayer dies;
(iii) the taxpayer ceases to carry on the primary production business of which the live stock that were disposed of or that died or were destroyed were assets or a partnership in which the taxpayer is a partner commences to carry on that business and the partnership does not make an election under subsection (12);
(iv) the taxpayer becomes bankrupt, applies to take the benefit of any law for the relief of bankrupt or insolvent debtors, compounds with his creditors or makes an assignment of any of his property for their benefit; or
(v) the taxpayer, being a company, commences to be wound up,
there shall, if the Commissioner so determines, be included in the assessable income of the taxpayer of that year of income an amount equal to the amount that is the reduced profit on the disposal or death of the live stock on the last day of that year of income.
S 36AAA(5) amended by No 101 of 2006 , s 3 and Sch 2 item 198, by substituting " primary production business " for " business of primary production " in para (b)(iii), effective 14 September 2006. For application and savings provisions see the CCH Australian Income Tax Legislation archive .
S 36AAA(5) amended by No 57 of 1990, No 124 of 1980 and No 51 of 1973.
36AAA(6)
Where -
(a) a partnership has made an election under subsection (1) or (1AA) in relation to the disposal of live stock or under subsection (1A) in relation to the death or destruction of live stock; and
(b) in any year of income -
(i) a partner in the partnership leaves Australia or appears to the Commissioner to be about to leave Australia;
(ii) the partnership ceases to carry on the primary production business of which the live stock that were disposed of or that died or were destroyed were assets;
(iii) a partner in the partnership becomes bankrupt, applies to take the benefit of any law for the relief of bankrupt or insolvent debtors, compounds with his creditors or makes an assignment of any of his property for their benefit;
(iv) a partner, being a company, in the partnership commences to be wound up; or
(v) there is a variation in the constitution of the partnership or in the interests of the partners,
there shall, if the Commissioner so determines and neither subsection (7) nor subsection (8) applies in relation to the partnership, be included in the assessable income of the partnership of that year of income an amount equal to the amount that is the reduced profit on the disposal or death of the live stock on the last day of that year of income.
S 36AAA(6) amended by No 101 of 2006 , s 3 and Sch 2 item 198, by substituting " primary production business " for " business of primary production " in para (b)(ii), effective 14 September 2006. For application and savings provisions see the CCH Australian Income Tax Legislation archive .
S 36AAA(6) amended by No 57 of 1990, No 108 of 1981, No 124 of 1980 and No 51 of 1973.
36AAA(7)
Where -
(a) a partnership has made an election under subsection (1) or (1AA) in relation to the disposal of live stock or under subsection (1A) in relation to the death or destruction of live stock; and
(b) in any year of income the partnership is dissolved,
there shall, subject to subsection (8), be included in the assessable income of the partnership of that year of income an amount equal to the amount that is the reduced profit on the disposal or death of the live stock on the day on which the partnership is dissolved.
S 36AAA(7) amended by No 57 of 1990, No 108 of 1981, No 124 of 1980 and No 51 of 1973.
36AAA(8)
Where -
(a) immediately after the partnership is dissolved, another partnership commences to carry on the primary production business of which the live stock that were disposed of or that died or were destroyed were assets;
(b) some or all of the partners in the dissolved partnership are partners in the other partnership; and
(c) the partners in the other partnership who were partners in the dissolved partnership are together entitled to not less than one-quarter of any income of the other partnership,
the other partnership may elect that this section shall apply to the other partnership in relation to the disposal, death or destruction of the live stock and, where such an election is made, then, for the purposes of this section, the other partnership shall be deemed to be a continuation of the dissolved partnership as if that partnership had not been dissolved.
S 36AAA(8) amended by No 101 of 2006 , s 3 and Sch 2 item 199, by substituting " primary production business " for " business of primary production " in para (a), effective 14 September 2006. For application and savings provisions see the CCH Australian Income Tax Legislation archive .
S 36AAA(8) amended by No 124 of 1980.
36AAA(9)
Where -
(a) the trustee of a trust estate has, or the trustee of and any beneficiaries in a trust estate have, made an election under subsection (1) or (1AA) in relation to the disposal of live stock or under subsection (1A) in relation to the death or destruction of live stock; and
(b) in any year of income -
(i) the trustee or a beneficiary leaves Australia or appears to the Commissioner to be about to leave Australia;
(ii) a beneficiary dies;
(iii) the trustee ceases to carry on the primary production business of which the live stock that were disposed of or that died or were destroyed were assets or a partnership in which the trustee is a partner commences to carry on that business and the partnership does not make an election under subsection (12);
(iv) an order for the administration of the trust estate is made under any law relating to bankruptcy or a beneficiary becomes bankrupt, applies to take the benefit of any law for the relief of bankrupt or insolvent debtors, compounds with his creditors or makes an assignment of any of his property for their benefit; or
(v) a beneficiary, being a company, commences to be wound up,
there shall, if the Commissioner so determines and subsection (10) does not apply in relation to the trust estate, be included in the assessable income of the trust estate of that year of income an amount equal to the amount that is the reduced profit on the disposal or death of the live stock on the last day of that year of income.
S 36AAA(9) amended by No 101 of 2006 , s 3 and Sch 2 item 200, by substituting " primary production business " for " business of primary production " in para (b)(iii), effective 14 September 2006. For application and savings provisions see the CCH Australian Income Tax Legislation archive .
S 36AAA(9) amended by No 57 of 1990, No 108 of 1981, No 124 of 1980 and No 51 of 1973.
36AAA(10)
Where -
(a) the trustee of a trust estate has, or the trustee of and any beneficiaries in a trust estate have, made an election under subsection (1) or (1AA) in relation to the disposal of live stock or under subsection (1A) in relation to the death or destruction of live stock; and
(b) in any year of income the trust estate ceases to exist,
there shall be included in the assessable income of the trust estate of that year of income an amount equal to the amount that is the reduced profit on the disposal or death of the live stock on the day on which the trust estate ceases to exist.
S 36AAA(10) amended by No 57 of 1990, No 124 of 1980 and No 51 of 1973.
36AAA(11)
Where -
(a) an election has been made by a taxpayer, a partnership or the trustee of, or the trustee of and any beneficiaries in, a trust estate under subsection (1) or (1AA) in relation to the disposal of live stock or under subsection (1A) in relation to the death or destruction of live stock; and
(b) the amount, or the aggregate of the amounts, to be included, by virtue of this section, in the assessable income of the taxpayer, partnership or trust estate, as the case may be, of a year of income in relation to the disposal, death or destruction of the live stock exceeds the amount that is the reduced profit on the disposal or death of the live stock on the last day of that year of income,
the amount of that excess shall not be included in that assessable income.
S 36AAA(11) amended by No 57 of 1990, No 124 of 1980 and No 51 of 1973.
36AAA(12)
Where -
(a) an election has been made by a taxpayer or the trustee of, or the trustee of and any beneficiaries in, a trust estate under subsection (1) or (1AA) in relation to the disposal of live stock or under subsection (1A) in relation to the death or destruction of live stock;
(b) during the year of income in which the live stock were disposed of, died or were destroyed or -
(i) where subsection (2) applies in relation to the disposal, death or destruction of the live stock - during any of the 5 years of income next succeeding that year of income; or
a partnership in which the taxpayer or trustee, as the case may be, is a partner commences to carry on the primary production business of which the live stock that were disposed of or that died or were destroyed were assets; and
(ii) where subsection (2A) applies in relation to the death or destruction of the live stock - during any of the 10 years of income next succeeding that year of income,
(c) the taxpayer or trust estate, as the case may be, is entitled to not less than one-quarter of any income of the partnership,
the partnership may elect that, as from the day on which the partnership commenced to carry on that primary production business, subsection (13) shall apply in relation to the disposal, or in relation to the death or destruction, of the live stock.
S 36AAA(12) amended by No 101 of 2006 , s 3 and Sch 2 item 201, by substituting " primary production business " for " business of primary production " wherever occurring, effective 14 September 2006. For application and savings provisions see the CCH Australian Income Tax Legislation archive .
S 36AAA(12) amended by No 57 of 1990, No 112 of 1986, No 108 of 1981, No 124 of 1980 and No 51 of 1973.
36AAA(13)
Where an election has been made by a partnership under subsection (12) in relation to live stock disposed of by a taxpayer or the trustee of a trust estate or in relation to live stock that, being an asset of a business carried on by a taxpayer or by the trustee of a trust estate, died or were destroyed -
(a) this section, other than paragraphs (2)(a), (aaa) and (aa) and (2A)(d) and (e), shall, subject to the succeeding paragraphs of this subsection, apply in relation to the partnership in respect of the disposal, death or destruction of the live stock as if the live stock had been an asset of a business carried on by the partnership at the time when the live stock were disposed of, died or were destroyed and the election by the partnership under subsection (12) had been an election by the partnership under subsection (1) or (1AA) in relation to the disposal of the live stock or under subsection (1A) in relation to the death or destruction of the live stock, as the case may be;
(b) the profit on the disposal or death of the live stock is, for the purposes of the application of this section, other than subsection (16), in relation to the partnership, the amount that is the profit on the disposal or death of the live stock in relation to the taxpayer or the trust estate, as the case may be;
(c) the profit on the disposal or death of the live stock is, for the purposes of the application of subsection (16) in relation to the partnership, the amount that, on the day immediately preceding the day on which the partnership commenced to carry on that primary production business, was the reduced profit on the disposal or death of the live stock in relation to the taxpayer or the trust estate, as the case may be;
(d) in the application to the partnership of any provision of this section that refers to the 5 years of income next succeeding the year of income in relation to which an election under subsection (1), (1AA) or (1A) is made, the reference to those years of income shall be read as a reference to the 5 years of income next succeeding the year of income in relation to which the election under subsection (1), subsection (1AA) or subsection (1A), as the case may be, was made by the taxpayer or by the trustee, or trustee and beneficiaries, as the case may be;
(da) in the application to the partnership of any provision of this section that refers to the 10 years of income next succeeding the year of income in relation to which an election under subsection (1A) is made, the reference to those years of income shall be read as a reference to the 10 years of income next succeeding the year of income in relation to which the election under subsection (1A) was made by the taxpayer or by the trustee, or trustee and beneficiaries, as the case may be;
(e) the election by the partnership shall not affect the operation of this section in relation to the taxpayer or trust estate, as the case may be, before the day on which the partnership commenced to carry on that primary production business; and
(f) the reduced profit on the disposal or death of the live stock shall, in relation to the taxpayer or trust estate, as the case may be, on the day on which the partnership commenced to carry on that primary production business, be deemed to be nil.
S 36AAA(13) amended by No 101 of 2006 , s 3 and Sch 2 item 202, by substituting " primary production business " for " business of primary production " in para (c), (e) and (f), effective 14 September 2006. For application and savings provisions see the CCH Australian Income Tax Legislation archive .
S 36AAA(13) amended by No 57 of 1990, No 112 of 1986, No 108 of 1981, No 124 of 1980 and No 51 of 1973.
36AAA(14)
An election under this section must be made -
(a) in the case of an election under subsection (1) - on or before the date of lodgment of the return of income of the year of income in which the disposal of live stock to which the election relates occurred;
(aaa) in the case of an election under subsection (1AA):
(i) 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
(ii) 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;
(aa) in the case of an election under subsection (1A) -
(i) if the whole of the proceeds of the death of the live stock to which the election relates were received in one year of income - on or before the date of lodgment of the return of income of that year of income; or
(ii) if the proceeds of the death of the live stock to which the election relates were received in 2 or more years of income - on or before the date of lodgment of the return of income of the later or latest of those years of income;
(b) in the case of an election under subsection (4) or (4A) - on or before the date of lodgment of the return of the year of income to which the election relates;
(c) in the case of an election under subsection (8) - on or before the date of lodgment of the return of the partnership that commences to carry on the business of the dissolved partnership of the year of income in which the partnership commenced to carry on that business; or
(d) in the case of an election under subsection (12) - on or before the date of lodgment of the return of the partnership of the year of income in which the partnership commenced to carry on the primary production business of which the live stock that were disposed of or that died or were destroyed were assets,
or within such further time as the Commissioner allows, and, in the case of an election by a partnership, the election shall be signed by or on behalf of each of the partners.
S 36AAA(14) amended by No 101 of 2006 , s 3 and Sch 2 item 202, by substituting " primary production business " for " business of primary production " in para (d), effective 14 September 2006. For application and savings provisions see the CCH Australian Income Tax Legislation archive .
S 36AAA(14) amended by No 101 of 1992, No 57 of 1990, No 112 of 1986, No 124 of 1980 and No 51 of 1973.
36AAA(15)
An amount included in the assessable income of a taxpayer, a partnership or a trust estate of any year of income by virtue of this section shall, for the purposes of this Act, be deemed to be assessable income derived by the taxpayer, the partnership or the trust estate, as the case may be, during that year from the carrying on by the taxpayer, the partnership or the trustee of the trust estate, as the case may be, in Australia during that year of a primary production business.
S 36AAA(15) amended by No 101 of 2006 , s 3 and Sch 2 item 203, by substituting " primary production business " for " business of primary production " , effective 14 September 2006. For application and savings provisions see the CCH Australian Income Tax Legislation archive .
36AAA(16)
Where an election has been made by a taxpayer, a partnership or the trustee of, or the trustee of and any beneficiaries in, a trust estate under subsection (1) or (1AA) in relation to the disposal of live stock or under subsection (1A) in relation to the death or destruction of live stock, the reduced profit on the disposal or death of the live stock on any day, or at any time, is, for the purposes of this section, the profit on the disposal of the live stock or the profit on the death of the live stock, as the case may be, less the sum of -
(a) an amount equal to the total consideration actually paid for live stock purchased by the taxpayer, the partnership or the trust estate, as the case may be, on or before that day or at or before that time, as the case may be, to replace any live stock disposed of or to replace any live stock that died or were destroyed, as the case may be, less the total of the amounts that, by virtue of paragraph (2)(b) or (2A)(f), as the case requires, are deemed to be the purchase prices of the animals included in the live stock so purchased; and
(b) each amount that, by virtue of this section, is included or required to be included, in relation to the disposal or the death or destruction of the live stock, in the assessable income of the taxpayer, the partnership or the trust estate, as the case may be, of any year of income prior to the year of income in which that day falls or that time occurs, as the case may be.
S 36AAA(16) amended by No 57 of 1990, No 112 of 1986, No 108 of 1981 and substituted by No 124 of 1980. Former s 36AAA(16) amended by No 51 of 1973.
36AAA(17)
Where an election is made under subsection (1), former paragraph 36(8)(b) has effect for the purpose of determining the profit on the disposal of live stock of a particular species included in live stock disposed of by a taxpayer, partnership or trustee and, for that purpose, any reference in that paragraph to live stock shall be read as a reference to live stock of that species.
S 36AAA(17) amended by No 101 of 2006 , s 3 and Sch 2 item 204, by amending references to repealed inoperative provisions, effective 14 September 2006. For application and savings provisions see the CCH Australian Income Tax Legislation archive .
S 36AAA(17) amended by No 57 of 1990 and No 108 of 1981.
36AAA(18)
Live stock of a particular species purchased by a taxpayer, partnership or trustee shall not, for the purposes of this section, be treated as replacing live stock of another species that, being an asset of a business carried on by the taxpayer, partnership or trustee, were disposed of, died or were destroyed unless the Commissioner is satisfied that the taxpayer, partnership or trustee purchased the live stock for the purpose of replacing live stock of that other species.
S 36AAA(18) substituted by No 124 of 1980.
36AAA(19)
A reference in this section to the last day of a year of income of a taxpayer, partnership or trust estate shall, if the assessment relating to income of the taxpayer, partnership or trust estate of a year of income is made in respect of a period ending before the end of that year of income, be read as a reference to the last day of that period.
36AAA(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:
(a) any amount received by the person who owned the live stock by way of compensation for:
(i) the condemnation of the live stock; or
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
(ii) the loss or diminution of the value of the live stock;
(b) any amount received by the person who owned the live stock as payment for:
(i) the live stock; or
(ii) the carcases, or any part of the carcases, of the live stock.
S 36AAA(19A) inserted by No 57 of 1990.
36AAA(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:
(a) in respect of any of the live stock that were on hand at the beginning of the year of income in which the live stock 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
(b) in respect of any of the live stock that were not on hand at the beginning of the year of income:
(i) in the case of live stock acquired by purchase - the purchase price of that live stock; and
(ii) in the case of live stock acquired otherwise than by purchase, but not including natural increase bred during that year of income by the person who owned the live stock at the time of the disposal - the amount that, under this Act, is taken to be the purchase price of that live stock.
S 36AAA(19B) inserted by No 57 of 1990.
36AAA(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.
S 36AAA(19C) inserted by No 57 of 1990.
36AAA(20)
In this section, a reference to the proceeds of the death of any live stock shall be read as a reference to the sum of -
(a) any amount received by the person who owned the live stock from the Commonwealth, from a State, from a Territory or from an authority constituted by or under a law of the Commonwealth, of a State or of a Territory by way of compensation for the death or destruction of the live stock; and
(b) any amount received by the person who owned the live stock as payment for the carcases, or any part of the carcases, of the live stock.
S 36AAA(20) added by No 124 of 1980.
36AAA(21)
In this section, a reference to profit on the death of any live stock shall be read as a reference to the amount remaining after deducting from the proceeds of the death of the live stock the sum of -
(a) in respect of any of the live stock that were on hand at the beginning of the year of income in which the live stock died or were destroyed - the value at which that live stock is, for the purposes of this Act, to be taken into account at the beginning of that year of income; and
(b) in respect of any of the live stock that were not on hand at the beginning of that year of income -
(i) in the case of live stock acquired by purchase - the purchase price of that live stock; and
(ii) in the case of live stock acquired otherwise than by purchase, but not including natural increase bred during that year of income by the person who owned the live stock at the time of the death or destruction - the amount that, under this Act, is deemed to be the purchase price of that live stock.
S 36AAA(21) added by No 124 of 1980.
36AAA(22)
Subsection (21) has effect for the purpose of determining the profit on the death of live stock of a particular species included in live stock that died or were destroyed and, for that purpose, a reference in that subsection to live stock shall be read as a reference to live stock of that species.
S 36AAA(22) added by No 124 of 1980.
36AAA(23)
In this section, a reference to the year of income to which an election under subsection (1A) relates shall be read as a reference to the year of income in which the live stock to which the election relates died or were destroyed.
S 36AAA(23) added by No 124 of 1980.
36AAA(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 disposed of.
S 36AAA(24) amended by No 4 of 1991 and inserted by No 57 of 1990.
36AAA(25)
In this section:
"official notification"
includes a declaration, direction, instruction or order.
S 36AAA(25) inserted by No 57 of 1990.
S 36AAA inserted by No 76 of 1967.
Archived:
S 36AA to 37 and Subdiv C repealed as inoperative by No 101 of 2006 , s 3 and Sch 1 item 57, effective 14 September 2006. For application and savings provisions and for former wording see the CCH Australian Income Tax Legislation archive .
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