Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1936 - SECT 6H

Recognised small credit union in relation to a year of income

             (1)  For the purposes of this Act, a credit union is a recognised small credit union in relation to a year of income if:

                     (a)  both:

                              (i)  the year of income is the 1994‑95 year of income; and

                             (ii)  either:

                                        (A)  the credit union is not a designated credit union; or

                                        (B)  the credit union's notional taxable income of the year of income is less than $50,000; or

                     (b)  both:

                              (i)  the year of income is the 1995‑96 year of income or a later year of income; and

                             (ii)  the credit union's notional taxable income of the year of income is less than $50,000.

Recognised medium credit union in relation to a year of income

             (2)  For the purposes of this Act, a credit union is a recognised medium credit union in relation to a year of income if:

                     (a)  the year of income is the 1994‑95 year of income or a later year of income; and

                     (b)  the credit union is not a recognised small credit union in relation to the year of income; and

                     (c)  the credit union's notional taxable income of the year of income is less than $150,000.

Recognised large credit union in relation to a year of income

             (3)  For the purposes of this Act, a credit union is a recognised large credit union in relation to a year of income if:

                     (a)  the year of income is the 1994‑95 year of income or a later year of income; and

                     (b)  the credit union is neither:

                              (i)  a recognised small credit union in relation to the year of income; nor

                             (ii)  a recognised medium credit union in relation to the year of income.

Designated credit union

             (4)  For the purposes of this section, a credit union is a designated credit union if:

                     (a)  it was in existence on 1 July 1993; and

                     (b)  assuming that its accounts for the last accounting period that ended before 1 July 1993 had been prepared in accordance with generally accepted accounting principles--the amount that would have been shown in those accounts as the gross value of its assets as at the end of that accounting period is more than $30 million.

Notional taxable income

             (5)  For the purposes of this section, the notional taxable income of a credit union of a year of income is the amount that would be its taxable income of the year of income if:

                     (a)  section 23G did not apply to income derived by it in the 1994‑95 year of income or any later year of income; and

                     (b)  Division 9 of Part III had not been enacted.

Definitions

             (6)  In this section:

"accounts" , in relation to a credit union, means accounts prepared for the purposes of reporting annually to the shareholders in the credit union.

"accounting period" , in relation to a credit union, means a period at the end of which the balance of its accounts is struck.

"credit union" means a credit union as defined in section 23G, except a life assurance company.