Commonwealth Consolidated Acts

TAX LAW IMPROVEMENT ACT (NO. 1) 1998 - SCHEDULE 9

Part 1—Amendment of the Income Tax (Transitional Provisions) Act 1997
1 Section 42-70

Repeal the section, substitute:

42-70 Adjustment: acquiring a car at a discount

Paragraph 42-70(1)(c) of the Income Tax Assessment Act 1997 has effect as if, in addition to referring to the car depreciation limit, it also referred to the motor vehicle depreciation limit under section 57AF of the Income Tax Assessment Act 1936 .

Part 2—Consequential amendment of the Income Tax Assessment Act 1997
2 Subsection 28-45(2) (note)

Omit "Subdivision 42-K", substitute "Section 42-80".

3 Paragraph 42-70(1)(c)

Omit "calculated under section 42-345".

4 At the end of section 42-80

Add:

(3)

The car depreciation limit for the 1997-98 financial year is $55,134.

(4)

The car depreciation limit is indexed annually.

Note: Subdivision 960-M shows you how to index amounts.

(5)

The Commissioner must publish before the beginning of each ^* financial year the ^* car depreciation limit for that year.

5 Subdivision 42-K

Repeal the Subdivision.

6 Subsection 995-1(1) (definition of car depreciation limit )

Omit "section 42-345", substitute "section 42-80".

Part 3—Consequential amendment of the Income Tax Assessment Act 1936
7 After subsection 57AF(5)

Insert:

(5A)

Despite subsection (5), the indexation factor for the 1997-98 financial year is 1.

Part 4—Application
8 Application

The amendments made by this Schedule apply to assessments for the 1997-98 income year and later income years.