Taxation Laws Amendment Act 1993 (17 of 1993)

Part 3   AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

Division 3   Amendments relating to property installed on leased Crown land

11   After Division 5A of Part IIIA of the Principal Act the following Division is inserted

"Division 5B-Property installed on leased Crown land Interpretation

"160ZWB.(1) In this Division:

'associate' has the same meaning as in section 54AA;

'Crown lease' has the same meaning as in section 54AA;

'entity' means any of the following:

(a) a company;

(b) a partnership;

(c) a person in the capacity of trustee;

(d) any other person;

'interest', in relation to a unit of property, means an interest attributable to a Crown lease (for example, an interest by way of a lease of the unit);

'lessee' has the same meaning as in section 54AA;

'lessor' has the same meaning as in section 54AA;

'unit of property' has the same meaning as in section 54AA.

"(2) This section has effect in spite of any other provision of this Part.

Termination etc. of Crown lease followed by grant of fresh Crown lease or of freehold to lessee

(When section applies)

"160ZWC.(1) This section applies if:

(a) an entity is the lessee of land under a Crown lease; and

(b) a unit of property is affixed to the land; and

(c) because of section 54AA, the provisions of this Act relating to depreciation apply as if the entity were the owner of the unit instead of any other person; and

(d) either:

(i) the Crown lease expires or is surrendered; or

(ii) the lessor terminates the Crown lease; and

(e) the expiry, surrender or termination is followed by:

(i) the grant to the entity of one or more fresh Crown leases of the land; or

(ii) the grant or transfer to the entity of an estate in fee simple in the land; and

(f) if the entity is not a partnership-apart from this section, the entity is taken, for the purposes of this Part, to have disposed of the entity's interest in the unit because of the expiry, surrender or termination of the Crown lease; and

(g) if the entity is a partnership-apart from this section, a partner in the partnership is taken, for the purposes of this Part, to have disposed of the partner's interest in the unit because of the expiry, surrender or termination of the Crown lease; and

(h) neither section 160ZZF nor section 160ZWA applies in relation to the disposal mentioned in paragraph (f) or (g).

(Entity not a partnership-CGT roll-over relief)

"(2) If the entity is not a partnership:

(a) this Part does not apply in respect of the disposal by the entity of the entity's interest in the unit; and

(b) the Commissioner must take such steps as are necessary to grant CGT roll-over relief in relation to the entity in respect of the disposal of the entity's interest in the unit.

(Entity a partnership-CGT roll-over relief)

"(3) If the entity is a partnership:

(a) this Part does not apply in respect of the disposal by a partner in the partnership of the partner's interest in the unit; and

(b) the Commissioner must take such steps as are necessary to grant CGT roll-over relief in relation to the partner in respect of the disposal of the partner's interest in the unit.

(CGT roll-over relief-steps to be taken)

"(4) The steps that the Commissioner may take include:

(a) treating a particular asset as having been acquired by an entity or partner before 20 September 1985; or

(b) treating an entity or partner as having paid, as consideration in respect of the acquisition of an asset held by the entity or partner, an amount equal to:

(i) for the purpose of ascertaining whether a capital gain accrued to the entity or partner in the event of a subsequent disposal of the asset by the entity or partner-such amount as is ascertained in a manner that the Commissioner determines to be appropriate; or

(ii) for the purpose of ascertaining whether the entity or partner incurred a capital loss in the event of a subsequent disposal of the asset by the entity or partner-such amount as is ascertained in a manner that the Commissioner determines to be appropriate.

(Determination of consideration)

"(5) A determination under paragraph (4)(b) may provide for the amount concerned to be ascertained in a different manner in different circumstances.

Termination etc. of Crown lease followed by grant of fresh Crown lease or of freehold to associate of lessee

(When section applies)

"160ZWD.(1) This section applies if:

(a) an entity is the lessee of land under a Crown lease; and

(b) a unit of property is affixed to the land; and

(c) because of section 54AA, the provisions of this Act relating to depreciation apply as if the entity were the owner of the property instead of any other person; and

(d) either:

(i) the Crown lease expires or is surrendered; or

(ii) the lessor terminates the Crown lease; and

(e) the expiry, surrender or termination is followed by:

(i) the grant to an associate of the entity of one or more fresh Crown leases of the land; or

(ii) the grant or transfer to an associate of the entity of an estate in fee simple in the land; and

(f) if the entity is not a partnership-the entity is taken, for the purposes of this Part, to have disposed of the entity's interest in the unit because of the expiry, surrender or termination of the Crown lease; and

(g) if the entity is a partnership-a partner in the partnership is taken, for the purposes of this Part, to have disposed of the partner's interest in the unit because of the expiry, surrender or termination of the Crown lease; and

(h) neither section 160ZZF nor section 160ZWA applies in relation to the disposal mentioned in paragraph (f) or (g).

(Entity not a partnership-reduced cost base to be reduced by depreciated value of unit)

"(2) If the entity is not a partnership, subsection 160ZK(1) has effect, in relation to the disposal of the entity's interest in the unit, as if the amount mentioned in paragraph 160ZK(1)(a) were further reduced by the depreciated value of the unit immediately before the expiry, surrender or termination of the Crown lease.

(Entity a partnership-reduced cost base to be reduced by partner's portion of depreciated value of unit)

"(3) If the entity is a partnership, subsection 160ZK(3) has effect, in relation to the disposal by a partner in the partnership of the partner's interest in the unit, as if the amount mentioned in paragraph 160ZK(3)(a) were further reduced by so much of the depreciated value of the unit immediately before the expiry, surrender or termination of the Crown lease as is attributable to the partner's interest in the unit.".