Tax Laws Amendment (Shipping Reform) Act 2012 (57 of 2012)

Schedule 2   Capital allowances

Part 1   Statutory capped life

Income Tax Assessment Act 1997

5   After subsection 40-102(4)

Insert:

(4A) Item 10 of the table in subsection 40-102(4) does not apply to a vessel if:

(a) *ordinary income that you *derive, or your *statutory income, in relation to the vessel; or

(b) ordinary income that your *associate derives, or your associate’s statutory income, in relation to the vessel;

is exempt from income tax under section 51-100 for the income year for which you are working out the vessel’s decline in value.