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

Part 2   AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

Division 8   Amendments relating to deductions for capital expenditure on traveller accommodation

39   Interpretation

Section 124ZA of the Principal Act is amended:

(a) by inserting the following definitions in subsection (1):
          

" 'post-26 February 1992 qualifying apartment expenditure' means qualifying apartment expenditure where the building, or the extension, alteration or improvement, in respect of the construction of which the qualifying apartment expenditure was incurred commenced to be constructed after 26 February 1992;

'post-26 February 1992 qualifying hotel expenditure' means qualifying hotel expenditure where the building, or the extension, alteration or improvement, in respect of the construction of which the qualifying hotel expenditure was incurred commenced to be constructed after 26 February 1992;

'pre-18 July 1985 qualifying apartment expenditure' means qualifying apartment expenditure where the building, or the extension, alteration or improvement, in respect of the construction of which the qualifying apartment expenditure was incurred commenced to be constructed before 18 July 1985;

'pre-18 July 1985 qualifying hotel expenditure' means qualifying hotel expenditure where the building, or the extension, alteration or improvement, in respect of the construction of which the qualifying hotel expenditure was incurred commenced to be constructed before 18 July 1985.";

(b) by omitting from subsection (16) "qualifying hotel expenditure or" (first occurring) and substituting "pre-18 July 1985 qualifying hotel expenditure or pre-18 July 1985";
          

(c) by inserting after subsection (16) the following subsections:
          

"(16A) For the purposes of this Division, if there is an amount of post-26 February 1992 qualifying hotel expenditure in respect of an eligible building, the amount of so much of the residual capital expenditure at a particular time ('relevant time') in relation to that qualifying hotel expenditure as is attributable to the hotel part or a part ('relevant part') of the hotel part is the amount (if any) worked out by:

(a) identifying the period:

(i) commencing on the day on which the hotel part or relevant part was first used by any person for any purpose after completion of the relevant construction; and

(ii) ending at the relevant time; and

(b) calculating, for each day (if any) in that period during the whole of which any part ('4% part') of the hotel part or relevant part, as the case may be, was dealt with in the prescribed manner by a taxpayer who owned that part of the hotel part or relevant part, the amount worked out using the formula:

(Portion of qualifying expenditure / Days in year) * 0.04

where:

'Portion of qualifying expenditure' means so much of the qualifying hotel expenditure as is attributable to the 4% part;

'Days in year' means the number of days in the financial year in which that day occurred; and

(c) calculating, for each day (if any) in that period during any part of which any part ('2.5% part') of the hotel part or relevant part, as the case may be, was not dealt with in the prescribed manner by a taxpayer who owned that part of the hotel part or relevant part, the amount worked out using the formula:

(Portion of qualifying expenditure / Days in year) * 0.025

where:

'Portion of qualifying expenditure' means so much of the qualifying hotel expenditure as is attributable to the 2.5% part;

'Days in year' means the number of days in the financial year in which that day occurred; and

(d) adding the amounts calculated under paragraphs (b) and (c); and

(e) deducting the result of the addition mentioned in paragraph (d) from so much of the amount of that qualifying hotel expenditure as is attributable to the hotel part or relevant part, as the case requires.

"(16B) For the purposes of this Division, if there is an amount of post-26 February 1992 qualifying apartment expenditure in respect of an eligible building, the amount of so much of the residual capital expenditure at a particular time ('relevant time') in relation to that qualifying apartment expenditure as is attributable to the apartment part or a part ('relevant part') of the apartment part is the amount (if any) worked out by:

(a) identifying the period:

(i) commencing on the day on which the apartment part or relevant part was first used by any person for any purpose after completion of the relevant construction; and

(ii) ending at the relevant time; and

(b) calculating, for each day (if any) in that period during the whole of which any part ('4% part') of the apartment part or relevant part, as the case may be, was dealt with in the prescribed manner by a taxpayer who owned that part of the apartment part or relevant part, the amount worked out using the formula:

(Portion of qualifying expenditure / Days in year) * 0.04

where:

'Portion of qualifying expenditure' means so much of the qualifying apartment expenditure as is attributable to the 4% part;

'Days in year' means the number of days in the financial year in which that day occurred; and

(c) calculating, for each day (if any) in that period during any part of which any part ('2.5% part') of the apartment part or relevant part, as the case may be, was not dealt with in the prescribed manner by a taxpayer who owned that part of the apartment part or relevant part, the amount worked out using the formula:

(Portion of qualifying expenditure / Days in year) * 0.025

where:

'Portion of qualifying expenditure' means so much of the qualifying apartment expenditure as is attributable to the 2.5% part;

'Days in year' means the number of days in the financial year in which that day occurred; and

(d) adding the amounts calculated under paragraphs (b) and (c); and

(e) deducting the result of the addition mentioned in paragraph (d) from so much of the amount of that qualifying apartment expenditure as is attributable to the apartment part or relevant part, as the case requires.".