TAX LAW IMPROVEMENT ACT 1997 NO. 121, 1997 - SCHEDULE 12

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TAX LAW IMPROVEMENT ACT 1997 NO. 121, 1997 - SCHEDULE 12

- Miscellaneous

Part 1—Amendment of the Income Tax Assessment Act 1997
1 At the end of section 2-30

Add "Each of these notes is a link note .".

2 Section 11-15 (before the table item headed "defence")

Insert:

credit unions
interest	23G

3 Section 13-1 (table item headed "trusts")

Omit "98A(2)", substitute "98A(2)(a)".

4 At the end of section 36-15

Add:

Note: Your tax losses under this Division may be reduced if any of your commercial debts have been forgiven in the income year: see Subdivision 245-E of Schedule 2C to the Income Tax Assessment Act 1936 .

5 Paragraph 36-40(1)(b)

Omit "referred to in", substitute "covered by".

6 Paragraph 36-40(2)(c)

Omit "referred to in", substitute "covered by".

7 At the end of section 43-50

Add:

(7): Your deductions under this Division may be reduced if any of your commercial debts have been forgiven in the income year: see Subdivision 245-E of Schedule 2C to the Income Tax Assessment Act 1936 .

8 At the end of section 165-165

Add:

[The next section is section 165-175.]

9 Subsection 170-5(2)

Omit " ^*wholly-owned group", substitute "wholly-owned group".

10 Subsection 330-15(1) (note)

Repeal the note, substitute:

Note 1: The amount you can deduct for an income year is subject to the excess deduction rules: see Subdivision 330-F.

Note 2: Your deductions under this Subdivision may be reduced if any of your commercial debts have been forgiven in the income year: see Subdivision 245-E of Schedule 2C to the Income Tax Assessment Act 1936 .

11 Section 330-80 (after note 1)

Insert:

Note 1A: Your deductions under this Subdivision may be reduced if any of your commercial debts have been forgiven in the income year: see Subdivision 245-E of Schedule 2C to the Income Tax Assessment Act 1936 .

12 Section 330-370 (note)

Repeal the note, substitute:

Note 1: Your deductions under this Subdivision may be reduced if any of your commercial debts have been forgiven in the income year: see Subdivision 245-E of Schedule 2C to the Income Tax Assessment Act 1936 .

Note 2: Section 330-60 of the Income Tax (Transitional Provisions) Act 1997 converts amounts of undeducted capital expenditure at the end of the 1996-97 income year into transport capital expenditure incurred by you in the 1997-98 income year. It also tells you how to deduct that expenditure.

13 Subsection 995-1(1) (definition of car )

Omit "or fewer", substitute "and fewer".

14 Subsection 995-1(1)

Insert:

"link note" has the meaning given by section 2-30.

Part 2—Amendment of the Income Tax Assessment Act 1936
15 Subsection 124ZZJ(5)

Repeal the subsection, substitute:

(5): Expenditure is taken not to be establishment expenditure in respect of the establishment of a horticultural plant to the extent to which the expenditure:

(a): is qualifying expenditure within the meaning of Division 10D of this Act; or
(b): is part of a pool of construction expenditure within the meaning of Division 43 of the Income Tax Assessment Act 1997 .

Note: Those Divisions deal with buildings, structural improvements and other capital works.

16 Section 245-110 of Schedule 2C (definition of table of deductible revenue losses )

Repeal the table, substitute:

Table of deductible revenue losses
Item	Column 1 General description of losses	Column 2 Provision under which loss is deductible
1	Tax losses	Section 36-15 of the Income Tax Assessment Act 1997
2	Foreign losses of pre-1990 years of income	Subsection 160AFD(1)
3	Foreign losses of post-1989 years of income	Subsection 160AFD(2)

17 Subsection 245-140(1) of Schedule 2C (table item dealing with expenditure incurred in relation to mining or quarrying operations)

Repeal the item, substitute:

Expenditure incurred in relation to mining or quarrying operations

Subdivision 330-C of the Income Tax Assessment Act 1997

18 Subsection 245-140(1) of Schedule 2C (table item dealing with expenditure incurred on exploration or prospecting for minerals obtainable by prescribed mining operations)

Repeal the item, substitute:

Expenditure incurred on exploration or prospecting for minerals or quarry materials

Subdivision 330-A of the Income Tax Assessment Act 1997

19 Subsection 245-140(1) of Schedule 2C (table item dealing with expenditure incurred in transporting minerals or quarry materials)

Omit "Subsections 123B(1) and 123BE(1)", substitute "Subdivision 330-H of the Income Tax Assessment Act 1997 ".

20 Subsection 245-140(1) of Schedule 2C (table item dealing with expenditure on prospecting and mining for petroleum)

Repeal the item.

21 Subsection 245-140(1) of Schedule 2C (table item dealing with construction costs of building for short term traveller accommodation)

Repeal the item, substitute:

Expenditure on assessable income producing buildings and other capital works

Section 43-10 of the Income Tax Assessment Act 1997

22 Subsection 245-140(1) of Schedule 2C (table item dealing with construction costs of buildings, structural improvements etc.)

Repeal the item.

23 After subsection 245-140(1) of Schedule 2C

Insert:

(1A): If the forgiveness year of income is the 1997-98 year of income, paragraph (a) of the definition of deductible expenditure in subsection (1) applies to expenditure that is taken by Division 330 of the Income Tax (Transitional Provisions) Act 1997 to be incurred in that year of income as if it had been incurred before the forgiveness year of income.

Note: Division 330 of the Income Tax (Transitional Provisions) Act 1997 deals with mining and quarrying expenditure.

Part 3—Amendment of the Income Tax (Consequential Amendments) Act 1997
24 Item 20 of Schedule 1

Repeal the item.