Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT (No. 2) 1994No. 82, 1994 - SECT 89

89. Section 82AJA of the Principal Act is amended by inserting after
subsection (1A) the following subsections:

"(1B) For the purposes of subsection (1), if the requirements set out in
subsection (1C) are satisfied:

   (a)  subparagraph (1)(d)(i) does not apply to the leasing of the property
        to a company (the 'related company') that is related to the person who
        owned the property and is an eligible public company in relation to
        the year of income in which the leasing occurs; or

   (b)  subparagraph (1)(d)(ib) does not apply to the granting of rights to
        use the property to a company (also the 'related company') that is
        related to the person who owned the property and is an eligible public
        company in relation to the year of income in which the granting of
        rights occurs.

"(1C) For the purposes of subsection (1B), the requirements are:

   (a)  that, if the time (the 'test time') when the earlier of:

        (i)    the end of the term of the lease or period of the grant; and

        (ii)   the end of the period of 12 months mentioned in paragraph
               (1)(d); occurs is in a year of income after the one in which
               the leasing or the granting of rights occurs, the related
               company is also an eligible public company in relation to that
               later year of income; and

   (b)  that, at all times during the period ending at the test time, the
        related company remains related to the person who owned the property
        and uses the property wholly and exclusively both in Australia and for
        the purpose of producing assessable income other than by leasing the
        property or otherwise granting a right to another person to use the
        property.".