INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART XII - DROUGHT INVESTMENT ALLOWANCE  

Division 8 - Definitions etc.  

SECTION 683   ADJUSTMENT OF EXCESSIVE AMOUNTS IN RESPECT OF DROUGHT MITIGATION PROPERTY  

683(1)   Where excessive amount allocated to the item of property.  

Subject to subsection (3), if, under a contract:

(a) an item of drought mitigation property is to be acquired or constructed; and

(b) an amount is expressed to be payable for the acquisition or construction of the item; and

(c) the amount exceeds:

(i) if the contract is for the construction of the item for a person by someone else on the person's premises - the market value of the item when construction is completed; or

(ii) in any other case - the market value of the item at the date of the contract;

the amount payable for the acquisition or construction of the item is taken to be the same as the market value applicable under paragraph (c).

683(2)   Where excessive amount allocated to materials.  

Subject to subsection (3), if, under a contract:

(a) materials for use in constructing an item of drought mitigation property are to be acquired; and

(b) an amount is expressed to be payable for the acquisition of the materials; and

(c) the amount exceeds:

(i) if the contract is for the construction of the item for a person by someone else on the person's premises - the market value of the item when construction is completed; or

(ii) in any other case - the market value of the materials at the date of the contract;

the amount payable for the acquisition of the materials is taken to be the same as the market value applicable under paragraph (c).

683(3)   Commissioner may determine that subsection does not apply.  

If the Commissioner so determines, subsection (1) or (2) does not apply to the amount payable.