Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT (No. 3) 1992No. 98, 1992 - SECT 49

49. Section 124ZH of the Principal Act is amended:
(a) by inserting in paragraphs (1)(a) and (2)(a) "pre-27 February 1992"
before "qualifying expenditure";

   (b)  by inserting after subsection (2) the following subsection:

"(2A) Subject to this section and section 124ZJ, if:

   (a)  there is an amount of post-26 February 1992 qualifying expenditure in
        respect of a building; and

   (b)  during a period in a year of income, a taxpayer:
    (i)   was the owner of the prescribed part and dealt
with any part of the prescribed part in the prescribed manner; or

        (ii)   was the owner of a part of the prescribed part and dealt with
               any part of that part of the prescribed part in the prescribed
               manner; a deduction is allowable to the taxpayer for the year
               of income equal to the amount worked out by:

   (c)  calculating, for each day (if any) in that period during the whole of
        which any part ('4% part') of the prescribed part owned by the
        taxpayer was dealt with by the taxpayer in an eligible industrial
        manner, the amount worked out using the formula:
               Portion of qualifying expenditure       0.04

Days in year where: 'Portion of qualifying expenditure' means so much of the
qualifying expenditure as is attributable to the 4% part; 'Days in year' means
the number of days in the year of income; and

   (d)  calculating, for each day (if any) in that period during any part of
        which any part ('2.5% part') of the prescribed part owned by the
        taxpayer was not dealt with by the taxpayer in an eligible industrial
        manner but was dealt with by the taxpayer in the prescribed manner,
        the amount worked out using the formula:
                 Portion of qualifying expenditure        0.025

Days in year where: 'Portion of qualifying expenditure' means so much of the
qualifying expenditure as is attributable to the 2.5% part; 'Days in year'
means the number of days in the year of income; and

   (e)  adding the amounts calculated under paragraphs (c) and (d).";

   (c)  by omitting from subsection (3) "this section" and substituting
        "subsection (1) or (2)";

   (d)  by inserting after subsection (3) the following subsection:

"(3A) A deduction allowable to a taxpayer under subsection (2A) in relation to
a year of income in respect of so much of an amount of qualifying expenditure
as is attributable to the prescribed part, or the part of the prescribed part,
mentioned in paragraph (2A)(b), must not exceed so much of the residual
capital expenditure at whichever of the following times is applicable:

   (a)  if the taxpayer's ownership of the prescribed part, or the part of the
        prescribed part, as the case may be, commenced during the year of
        income - immediately after the time when that ownership commenced; or

   (b)  in any other case - the beginning of the year of income; in relation
        to the amount of the qualifying expenditure as is attributable to the
        prescribed part, or the part of the prescribed part, as the case
        requires.".