A New Tax System (Indirect Tax and Consequential Amendments) Act 1999 (176 of 1999)

Schedule 3   Income Tax Assessment Act 1997

Part 1   General

35   After subsection 70-45(1)

Insert:

(1A) In working out the *cost, market selling value or replacement value of an item of *trading stock (other than an item the *supply of which cannot be a *taxable supply) at the end of an income year, disregard an amount equal to the amount of the *input tax credit (if any) to which you would be entitled if:

(a) you had *acquired the item at that time; and

(b) the acquisition had been solely for a *creditable purpose; and

Note: Some assets, such as shares, cannot be the subject of a taxable supply.