Commonwealth Numbered Acts

SOCIAL SECURITY LEGISLATION AMENDMENT ACT 1990 No. 6, 1991 - SECT 6

6. After section 3A of the Principal Act the following section is inserted:
Calculation of income

"3AA. (1) This section applies to the calculation for the purposes of this Act
of a person's income, other than income of the person because of Division 2.

"(2) Where:

   (a)  the person carries on any business; and

   (b)  the value of all trading stock on hand at the end of a year exceeds
        the value of all trading stock on hand at the beginning of that year;
        the income of the person for that year by way of profits includes the
        amount of the excess.

"(3) Where:

   (a)  the person carries on any business; and

   (b)  the value of all trading stock on hand at the beginning of a year
        exceeds the value of all trading stock on hand at the end of that
        year; the income of the person for that year by way of profits shall
        be reduced by the amount of the excess.

"(4) The income of the person is the gross income of the person reduced by,
and only by:

   (a)  losses and outgoings that are allowable deductions for the purposes of
        section 51 of the Income Tax Assessment Act 1936; and

   (b)  depreciation that is an allowable deduction for the purposes of
        subsection 54 (1) of that Act; and

   (c)  amounts that are allowable deductions under subsection82aac (1) of
        that Act.".
Commencement: Day of Royal Assent