Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT (No. 2) 1990No. 57, 1990 - SECT 9

9. Section 36AA of the Principal Act is amended:

   (a)  by inserting after subsection (1) the following subsection:

"(1A) Where:

   (a)  live stock, being assets of a business of primary production carried
        on by a taxpayer in Australia are disposed of, by sale or otherwise,
        by the taxpayer in consequence of an official notification under a law
        of the Commonwealth, a State or a Territory dealing with contamination
        of land, live stock or other property; and

   (b)  the proceeds of the disposal of the live stock would, apart from this
        section, be included in the assessable income of the taxpayer of a
        year or years of income; and

   (c)  there is a profit arising in respect of the disposal of the live
        stock; the taxpayer may elect that this section is to apply in
        relation to the profit arising in respect of the disposal of the live
        stock.";
(b) by inserting in subsections (2), (3), (4), (5) and (6) "or (1A)" after
"(1)";
(c) by inserting in subsections (2), (3), (4) and (6) "or disposal" after
"death" (wherever occurring);

   (d)  by inserting in subsections (2), (3) and (4) "or disposed of" after

"destroyed" (wherever occurring);

   (e)  by omitting "or" from the end of paragraph (5) (c);

   (f)  by adding at the end of paragraph (5) (d) "or";

   (g)  by inserting after paragraph (5) (d) the following paragraph:
     "(e)   both of the following conditions are satisfied:


   (i)  the taxpayer has made an election under subsection (1A);

   (ii) the taxpayer ceases to carry on the business of primary production of
        which the live stock that were disposed of were assets;";
(h) by inserting in subsection (5) "and in consequence of the election" after
"in pursuance of this section";

   (j)  by adding at the end the following subsections:

"(9) In this section, a reference to the proceeds of the disposal of any live
stock is to be read as a reference to the sum of:

   (a)  any amount received by the person who owned the live stock by way of
        compensation for:

   (i)  the condemnation of the live stock; or

   (ii) the loss or diminution of the value of the live stock; resulting from
        an official notification under a law of the Commonwealth, a State or a
        Territory dealing with contamination of land, live stock or other
        property; and

   (b)  any amount received by the person who owned the live stock as payment
        for:

   (i)  the live stock; or

   (ii) the carcases, or any part of the carcases, of the live stock.

"(10) In this section, a reference to profit arising in respect of the
disposal of any live stock is to be read as a reference to the amount
remaining after deducting from the proceeds of the disposal of the live stock
the sum of:

   (a)  in respect of any of the live stock that were on hand at the beginning
        of the year of income in which the live stock were disposed of - the
        value at which the live stock is, for the purposes of this Act, to be
        taken into account at the beginning of that year of income; and

   (b)  in respect of any of the live stock that were not on hand at the
        beginning of the year of income:

   (i)  in the case of live stock acquired by purchase - the purchase price of
        that live stock; and

   (ii) in the case of live stock acquired otherwise than by purchase, but not
        including natural increase bred during that year of income by the
        person who owned the live stock at the time of the disposal - the
        amount that, under this Act, is taken to be the purchase price of that
        live stock.

"(11) In this section:
'official notification' includes a declaration, direction, instruction or
order.".