INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 (ARCHIVE)

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 330 - Mining and quarrying  

Subdivision 330-J - Balancing adjustment  

SECTION 330-65 (ARCHIVE)   How the balancing adjustment is affected if there has only been old roll-over relief  

330-65(1)   [Where balancing adjustment affected]  

If:

(a) in the 1996-97 income year or an earlier income year roll-over relief was available under any of the old roll-over provisions in relation to the disposal of property by a taxpayer (the transferor ) to another taxpayer (the transferee ); and

(b) in the 1997-98 income year or a later income year:

(i) the property is lost or destroyed; or

(ii) the transferee disposes of the property in circumstances where Subdivision 41-A of the Income Tax Assessment Act 1997 (Common rule 1 (Roll-over relief for related entities)) does not apply to the disposal; or

(iii) the transferee stops using the property for purposes that qualify expenditure on the property for a deduction under Subdivision 330-A, 330-C or 330-H of the Income Tax Assessment Act 1997 ; and

(c) there has been no earlier disposal of the property where roll-over relief was available under Common rule 1;

the balancing adjustment is affected in 2 ways.

330-65(2)   [Deemed deductible amounts of transferee]  

First:

(a) the total amounts deductible by the transferor, under Division 10 , 10AAA or 10AA of Part III of the Income Tax Assessment Act 1936 , in relation to the property; or

(b) if there have been 2 or more prior applications of the old roll-over provisions - the total amounts deductible by the prior transferors, under that Division, in relation to the property;

are taken to have been deductible by the transferee, under that Division, in relation to the property.

330-65(3)   [Deemed capital expenditure of transferee]  

Second:

(a) the total capital expenditure of the transferor in relation to the property; or

(b) if there have been 2 or more prior applications of the old roll-over provisions - the total capital expenditure of the prior transferors in relation to the property;

is taken to have been total capital expenditure of the transferee in relation to the property.

330-65(4)   [ Old roll-over provisions ]  

The old roll-over provisions are:

Item	Mining Activity	Section of the Income Tax Assessment Act 1936
1.	General mining	122JAA
.
2.	Quarrying	122JG
.
3.	Transport of certain minerals	123BBA
.
4.	Transport of quarry materials	123BF
.
5.	Prospecting and mining for petroleum	124AMAA