Tax Laws Amendment (Repeal of Inoperative Provisions) Act 2006 (101 of 2006)

Schedule 2   Consequential amendments relating to Schedule 1 repeals etc.

Part 1   Amendments: general

Income Tax (Transitional Provisions) Act 1997

813   At the end of Division 40

Add:

Subdivision 40-J - Ships depreciated under section 57AM of the Income Tax Assessment Act 1936

Table of sections

40-830 Ships depreciated under section 57AM of the Income Tax Assessment Act 1936

40-830 Ships depreciated under section 57AM of the Income Tax Assessment Act 1936

(1) This section applies if:

(a) you have deducted or can deduct amounts for a ship under section 57AM of the Income Tax Assessment Act 1936 as in force before its repeal by Schedule 1 to the Tax Laws Amendment (Repeal of Inoperative Provisions) Act 2006; and

(b) you hold the ship when this section commences.

(2) Division 40 of the Income Tax Assessment Act 1997 applies to the ship after the commencement of this section.

(3) For the purposes of that application:

(a) the cost of the ship when this section commences is its cost under the Income Tax Assessment Act 1936 just before that time; and

(b) the ship's adjustable value when this section commences is its depreciated value under the Income Tax Assessment Act 1936 just before that time; and

(c) paragraphs 40-285(1)(a) and (2)(a) have effect as if amounts you have deducted or can deduct under section 57AM of the Income Tax Assessment Act 1936, as in force before its repeal, are taken to be part of the ship's decline in value under Subdivision 40-B of the Income Tax Assessment Act 1997.