New Business Tax System (Integrity and Other Measures) Act 1999 (Incorporating amendments up to Act No. 78 of 2001) (169 of 1999)
Schedule 1 Disposal of leases and leased plant
Income Tax (Transitional Provisions) Act 1997
17 After Division 43
Insert:
Division 45 - Disposal of leases and leased plant
Table of sections
45-1 Application of Division 45 of the Income Tax Assessment Act 1997
45-3 Application of Division 45 to disposals between February 1999 and September 1999
45-40 Application of Division to plant formerly owned by exempt entities
45-1 Application of Division 45 of the Income Tax Assessment Act 1997
Division 45 of the Income Tax Assessment Act 1997 applies to assessments for the income year in which 22 February 1999 occurs and later income years.
45-3 Application of Division 45 to disposals between February 1999 and September 1999
(1) For disposals of plant or interests in plant on or after 22 February 1999 and before 11.45 am, by legal time in the Australian Capital Territory, on 21 September 1999, Division 45 of the Income Tax Assessment Act 1997 applies with the modifications specified in this section.
(2) That Division applies as if subsection 45-5(2) were replaced by this provision:
(2) The amount included is the lesser of:
(a) the excess referred to in paragraph (1)(e); and
(b) the amounts you have deducted or can deduct for depreciation of the plant or, if you disposed of an interest in the plant, so much of those amounts as is attributable to that interest.
It is included for the income year in which the disposal occurred.
(3) That Division applies as if paragraph 45-5(5)(a) were replaced by this provision:
(a) it is included in that assessable income under a provision of this Act outside this Division and Parts 3-1 and 3-3 (about capital gains and losses); or
(4) That Division applies as if subsection 45-10(2) were replaced by this provision:
(2) The amount included is the lesser of:
(a) the excess referred to in paragraph (1)(f); and
(b) that part of the amounts the partnership has deducted or can deduct for depreciation of the plant that has been or would be reflected in your interest in the partnership net income or partnership loss (your partnership amount ) or, if you disposed of part of your interest in the plant, so much of your partnership amount as is attributable to that part of that interest.
It is included for the income year in which the disposal occurred.
(5) That Division applies as if paragraph 45-10(5)(a) were replaced by this provision:
(a) it is included in that assessable income under a provision of this Act outside this Division and Parts 3-1 and 3-3 (about capital gains and losses); or
(6) That Division applies as if this section were added at the end of that Division:
45-40 Application of Division to plant formerly owned by exempt entities
(1) There are the consequences set out in this table for a transition entity that disposes of the plant, interest in plant or interest (or part) in a partnership to an entity specified in subsection (3).
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Consequences for transition entities |
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Item |
In this situation: |
There are these consequences: |
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1 |
The entity chooses, under section 58-20, that depreciation deductions and balancing adjustments are to be calculated by reference to the notional written down value of plant |
(a) section 45-5 has effect as if paragraph 45-5(2)(b) were omitted and replaced by paragraph 58-85(8)(a); and (b) section 45-10 has effect as if paragraph 45-10(2)(b) operated on that part of the amount worked out under paragraph 58-85(8)(a) that has been or would be reflected in the entity's interest in the partnership net income or partnership loss if that amount were an amount deducted for depreciation of the plant. |
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2 |
The entity chooses, under section 58-20, that depreciation deductions and balancing adjustments are to be calculated by reference to the undeducted pre-existing audited book value of plant |
(a) section 45-5 has effect as if paragraph 45-5(2)(b) were omitted and replaced by paragraph 58-145(8)(a); and (b) section 45-10 has effect as if paragraph 45-10(2)(b) operated on that part of the amount worked out under paragraph 58-145(8)(a) that has been or would be reflected in the entity's interest in the partnership net income or partnership loss if that amount were an amount deducted for depreciation of the plant. |
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(2) There are the consequences set out in this table for an entity that: (a) acquired the plant from a tax exempt vendor in connection with the acquisition of a business; and (b) disposes of the plant, interest in plant or interest (or part) in a partnership to an entity specified in subsection (3). Consequences for transition entities |
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Item |
In this situation: |
There are these consequences: |
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1 |
The entity chooses, under section 58-155, that depreciation deductions and balancing adjustments are to be calculated by reference to the notional written down value of plant |
(a) section 45-5 has effect as if paragraph 45-5(2)(b) were omitted and replaced by paragraph 58-215(3)(a); and (b) section 45-10 has effect as if paragraph 45-10(2)(b) operated on that part of the amount worked out under paragraph 58-215(3)(a) that has been or would be reflected in the entity's interest in the partnership net income or partnership loss if that amount were an amount deducted for depreciation of the plant. |
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2 |
The entity chooses, under section 58-155, that depreciation deductions and balancing adjustments are to be calculated by reference to the undeducted pre-existing audited book value of plant |
(a) section 45-5 has effect as if paragraph 45-5(2)(b) were omitted and replaced by paragraph 58-270(3)(a); and (b) section 45-10 has effect as if paragraph 45-10(2)(b) operated on that part of the amount worked out under paragraph 58-270(3)(a) that has been or would be reflected in the entity's interest in the partnership net income or partnership loss if that amount were an amount deducted for depreciation of the plant. |
(3) The entities are:
(a) an exempt entity; or
(b) the trustee of a complying superannuation fund; or
(c) the trustee of a complying approved deposit fund; or
(d) the trustee of a pooled superannuation trust; or
(e) an entity that is not an Australian resident; or
(f) an entity that is a State/Territory body for the purposes of Division 1AB of Part III of the Income Tax Assessment Act 1936 and whose income is exempt under that Division.
Apportionment
(4) If the entity concerned disposed of an interest in the plant rather than the plant (for a paragraph 45-5(2)(b) case), instead of the amount worked out under the table in subsection (1) or (2), the entity uses so much of that amount as is attributable to that interest.
(5) If the entity concerned disposed of part of its interest in the plant rather than all of it (for a paragraph 45-10(2)(b) case), instead of the amount worked out under the table in subsection (1) or (2), the entity uses so much of that amount as is attributable to that part of that interest.
[The next Part is Part 2-15.]