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

Part 2   AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

Division 9   Amendments relating to deductions for capital expenditure on industrial buildings

47   Interpretation

Section 124ZF of the Principal Act is amended:

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

" 'eligible industrial manner', in relation to a building, has the meaning given by section 124ZFA;

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

'pre-27 February 1992 qualifying expenditure' means qualifying expenditure where the building, or the extension, alteration or improvement, in respect of the construction of which the qualifying expenditure was incurred commenced to be constructed before 27 February 1992;";

(b) by inserting in subsection (11) "pre-27 February 1992" before "qualifying expenditure" (first occurring);
          

(c) by inserting after subsection (11) the following subsection:
          

"(11A) For the purposes of this Division, if there is an amount of post-26 February 1992 qualifying 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 expenditure as is attributable to the prescribed part or a part ('relevant part') of the prescribed part is the amount (if any) worked out by:

(a) identifying the period:

(i) commencing on the day on which the prescribed 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 prescribed part or relevant part, as the case may be, was dealt with in an eligible industrial manner by a taxpayer who owned that part of the prescribed 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 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 which any part of which any part ('2.5% part') of the prescribed part or relevant part, as the case may be, was not dealt with in an eligible industrial manner by a taxpayer who owned that part of the prescribed 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 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 expenditure as is attributable to the prescribed part or relevant part, as the case requires.".