Commonwealth Consolidated Acts

TAX LAW IMPROVEMENT ACT (NO. 1) 1998 - SCHEDULE 7

Part 1—Amendment of the Income Tax (Transitional Provisions) Act 1997
1 At the end of the Act

Add:

[The next Division is Division 400.]

Division 400—Environmental impact assessment and environmental protection

Table of sections

400-10 Application of Subdivision 400-A of the Income Tax Assessment Act 1997
400-20 Deductions under section 82BB of the Income Tax Assessment Act 1936
400-50 Application of Subdivision 400-B of the Income Tax Assessment Act 1997
400-100 Application of Subdivision 400-C of the Income Tax Assessment Act 1997

400-10 Application of Subdivision 400-A of the Income Tax Assessment Act 1997

(1)

Subdivision 400-A of the Income Tax Assessment Act 1997 applies to assessments for the 1998-99 income year and later income years, in relation to expenditure incurred on or after 12 March 1991.

(2)

To work out the amount (if any) you can deduct under that Subdivision for expenditure you incurred before the 1998-99 income year, use the amount of that expenditure that you were allowed to use to work out your deductions under section 82BB of the Income Tax Assessment Act 1936 for income years before the 1998-99 income year.

Note: This means that you cannot get a deduction under that Subdivision for expenditure that you recouped before the 1997-98 income year.

400-20 Deductions under section 82BB of the Income Tax Assessment Act 1936

Deductions under section 82BB do not prevent deductions under Subdivision 400-A of the Income Tax Assessment Act 1997

(1)

In applying section 400-20 of the Income Tax Assessment Act 1997 to work out whether you can deduct an amount under Subdivision 400-A of that Act for expenditure, disregard any possibility of deducting an amount for the expenditure under section 82BB of the Income Tax Assessment Act 1936 .

Note: This ensures that you can deduct amounts under Subdivision 400-A of the Income Tax Assessment Act 1997 for the 1998-99 income year and later income years, even if you can deduct amounts under section 82BB of the Income Tax Assessment Act 1936 for one or more income years before the 1998-99 income year.

Saving of deductions under section 82BB of the Income Tax Assessment Act 1936

(2)

Subdivision 400-A of the Income Tax Assessment Act 1997 does not affect a deduction under section 82BB of the Income Tax Assessment Act 1936 for the 1997-98 income year or an earlier income year.

[The next section is section 400-50.]

400-50 Application of Subdivision 400-B of the Income Tax Assessment Act 1997

Subdivision 400-B of the Income Tax Assessment Act 1997 applies to assessments for the 1998-99 income year and later income years.

[The next section is section 400-100.]

400-100 Application of Subdivision 400-C of the Income Tax Assessment Act 1997

Subdivision 400-C of the Income Tax Assessment Act 1997 applies to the use of property in the 1998-99 income year and later income years.

Part 2—Consequential amendment of the Income Tax Assessment Act 1997
2 Section 12-5 (table item headed "environment")

Repeal the item, substitute:

3 Subsection 20-30(1) (at the end of the table)

Add:

4 Section 40-30 (table items dealing with environmental impact studies and environment protection)

Repeal the items, substitute:

5 Section 41-5 (after table item dealing with electricity connections)

Insert:

6 Subsection 42-55(1)

Repeal the subsection.

7 Subsection 42-55(2)

Repeal the subsection.

8 Paragraph 43-20(5)(a)

Repeal the paragraph, substitute:

(a) they are constructed as a result of carrying out an activity described in paragraph 400-60(1)(a) or (b) (in the definition of environmental protection activities ); and
9 Subsection 43-20(5) (note)

Omit "eligible environment", substitute "environmental".

10 Subsection 43-50(4)

Repeal the subsection.

11 Subsection 43-50(5)

Repeal the subsection.

Part 3—Consequential amendment of the Income Tax Assessment Act 1936
12 Before subsection 82BB(1)

Insert:

(1A)

This section does not allow a deduction for the 1998-99 year of income or a later year of income.

Note: Subdivision 400-A of the Income Tax Assessment Act 1997 allows deductions for the 1998-99 year of income and later years of income for allowable environmental impact expenditure.

13 Subsection 82BG(1)

After "1991", insert "and before the taxpayer's 1998-99 year of income".

14 At the end of subsection 82BG(1)

Add:

Note: Subdivision 400-C of the Income Tax Assessment Act 1997 treats property used for eligible environmental impact activities in the 1998-99 year of income or a later year of income as if it were used for the purpose of producing assessable income.

15 Before subsection 82BK(1)

Insert:

(1A)

This section does not allow a deduction for the 1998-99 year of income or a later year of income.

Note: Subdivision 400-B of the Income Tax Assessment Act 1997 allows deductions for the 1998-99 year of income and later years of income for allowable environment protection expenditure.

16 Subsection 82BR(1)

After "1992", insert "and before the taxpayer's 1998-99 year of income".

17 At the end of subsection 82BR(1)

Add:

Note: Subdivision 400-C of the Income Tax Assessment Act 1997 treats property used for eligible environment protection activities in the 1998-99 year of income or a later year of income as if it were used for the purpose of producing assessable income.

18 Subsection 245-140(1) of Schedule 2C (table item dealing with expenditure on study to evaluate the environmental impact of an income producing project)

Repeal the item, substitute:

19 Subsection 57-85(3) of Schedule 2D (table items 3 and 4)

Repeal the items, substitute: