Commonwealth Consolidated Acts

TAXATION LAWS AMENDMENT ACT (NO. 3) 1992 - SECT 38

Application of amendments relating to depreciation of property installed on

leased Crown land (Definitions)

  38.(1) In this section:

"amended Act" means the Principal Act as amended by this Act;

"first year of income", in relation to a unit of property owned by a taxpayer,

means the year of income for which depreciation is first allowable to the

taxpayer in relation to the property;

"interim Act" means the Principal Act as in force immediately before the

commencement of section 1 of the Taxation Laws Amendment Act (No. 2) 1992;

"pre-27 February 1992 property", in relation to a taxpayer, has the same

meaning as in section 66 of the Taxation Laws Amendment Act (No. 2) 1992.

(General application of amendments: post-26 February 1992 periods)

  (2) Section 54AA of the amended Act applies in calculating the depreciation

allowable to a taxpayer in relation to a unit of property in respect of so

much of a year of income as occurred on or after27 February 1992.

(Modified basis for calculating depreciation of pre-27 February 1992

property)

  (3) If:

  (a)  section 54AA of the amended Act operates so as to deem a taxpayer to be

the owner of a unit of property; and

  (b)  the property is pre-27 February 1992 property of the taxpayer; the

provisions of the Income Tax Assessment Act 1936 relating to depreciation

apply as if:

  (c)  if the amendments covered by subsection 54(7) of the Taxation Laws

Amendment Act (No. 4) 1988 did not apply to the taxpayer in relation to the

property - those amendments applied to the taxpayer in relation to the

property; and

  (d)  if the depreciation allowable to the taxpayer in respect of the

property for the first year of income was calculated in accordance with

paragraph 56(1)(a) of the interim Act - the taxpayer had acquired the property

for a consideration equal to the amount that would have been the depreciated

value of the property immediately before 27 February 1992 if:

    (i)   section 54AA of the amended Act had applied in

calculating the depreciation allowable to the taxpayer in relation to the

property in respect of so much of a year of income as occurred before 27

February 1992; and

    (ii)  subsection 55(5) of the interim Act (which deals

with broadbanding) had not been enacted; and

    (iii)  repealed sections 57AA, 57AB, 57AC, 57AD, 57AE,

57AH and 57AL of the Principal Act (which dealt with special depreciation) had

not been enacted; and

    (iv)  section 57AK of the amended Act (which deals with

special depreciation) had not been enacted; and

  (e)  if paragraph (d) does not apply - depreciation were not allowable to the

taxpayer in relation to the property in respect of so much of the cost of the

property as would have been allowable to the taxpayer in respect of depreciation in

relation to the property if:

    (i)  section 54AA of the amended Act had applied in

calculating the depreciation allowable to the taxpayer in relation to the

property in respect of so much of a year of income as occurred before 27

February 1992; and

    (ii)  subsection 55(5) of the interim Act (which deals

with broadbanding) had not been enacted; and

    (iii)  repealed sections 57AA, 57AB, 57AC, 57AD, 57AE,

57AH and 57AL of the Principal Act (which dealt with special depreciation) had

not been enacted; and

    (iv)  section 57AK of the amended Act (which deals with

special depreciation) had not been enacted; and

    (v)  section 61 of the amended Act (which deals with

property used partly for income-producing purposes) had not been enacted; and

  (f)  if paragraph (d) does not apply - the depreciated value of the property

at a time when the property was owned by the taxpayer were worked out as if

the assumptions set out in subparagraphs (e)(i) to (v) (inclusive) were

made.

(Paragraph (3)(d) has effect in spite of subparagraph 54AA(2)(b)(i) of amended

Act)

  (4) Paragraph (3)(d) of this section has effect in spite of subparagraph

54AA(2)(b)(i) of the amended Act.

Division 8 - Amendments relating to deductions for capital expenditure

             on traveller accommodation