Taxation Laws Amendment Act (No. 3) 1992 (98 of 1992)

Part 2   AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

Division 7   Amendments relating to depreciation of property installed on leased Crown land

38   Application of amendments relating to depreciation of property installed on leased Crown land (Definitions)

 

(1) In this section:
        

"amended Act" means the Principal Act as amended by this Act;

"first year of income", in relation to a unit of property owned by a taxpayer, means the year of income for which depreciation is first allowable to the taxpayer in relation to the property;

"interim Act" means the Principal Act as in force immediately before the commencement of section 1 of the Taxation Laws Amendment Act (No. 2) 1992;

"pre-27 February 1992 property", in relation to a taxpayer, has the same meaning as in section 66 of the Taxation Laws Amendment Act (No. 2) 1992.

(General application of amendments: post-26 February 1992 periods)

      

(2) Section 54AA of the amended Act applies in calculating the depreciation allowable to a taxpayer in relation to a unit of property in respect of so much of a year of income as occurred on or after27 February 1992.
        

(Modified basis for calculating depreciation of pre-27 February 1992 property)

      

(3) If:
        

(a) section 54AA of the amended Act operates so as to deem a taxpayer to be the owner of a unit of property; and
          

(b) the property is pre-27 February 1992 property of the taxpayer; the provisions of the Income Tax Assessment Act 1936 relating to depreciation apply as if:
          

(c) if the amendments covered by subsection 54(7) of the Taxation Laws Amendment Act (No. 4) 1988 did not apply to the taxpayer in relation to the property - those amendments applied to the taxpayer in relation to the property; and
          

(d) if the depreciation allowable to the taxpayer in respect of the property for the first year of income was calculated in accordance with paragraph 56(1)(a) of the interim Act - the taxpayer had acquired the property for a consideration equal to the amount that would have been the depreciated value of the property immediately before 27 February 1992 if:
          

(i) section 54AA of the amended Act had applied in calculating the depreciation allowable to the taxpayer in relation to the property in respect of so much of a year of income as occurred before 27 February 1992; and
        

(ii) subsection 55(5) of the interim Act (which deals with broadbanding) had not been enacted; and
        

(iii) repealed sections 57AA, 57AB, 57AC, 57AD, 57AE, 57AH and 57AL of the Principal Act (which dealt with special depreciation) had not been enacted; and
        

(iv) section 57AK of the amended Act (which deals with special depreciation) had not been enacted; or
        

(e) in any other case - depreciation were not allowable to the taxpayer in relation to the property in respect of so much of the cost of the property as would have been allowable to the taxpayer in respect of depreciation in relation to the property if:
          

(i) section 54AA of the amended Act had applied in calculating the depreciation allowable to the taxpayer in relation to the property in respect of so much of a year of income as occurred before 27 February 1992; and
        

(ii) subsection 55(5) of the interim Act (which deals with broadbanding) had not been enacted; and
        

(iii) repealed sections 57AA, 57AB, 57AC, 57AD, 57AE, 57AH and 57AL of the Principal Act (which dealt with special depreciation) had not been enacted; and
        

(iv) section 57AK of the amended Act (which deals with special depreciation) had not been enacted; and
        

(v) section 61 of the amended Act (which deals with property used partly for income-producing purposes) had not been enacted.
        

(Paragraph (3)(d) has effect in spite of subparagraph 54AA(2)(b)(i) of amended Act)

      

(4) Paragraph (3)(d) of this section has effect in spite of subparagraph 54AA(2)(b)(i) of the amended Act.