Tax Laws Amendment (2005 Measures No. 2) Act 2005 (78 of 2005)

Schedule 3   Deducting expenditure on telecommunications rights

Part 1   IRUs

Income Tax (Transitional Provisions) Act 1997

5   Application of amendments

(1) The amendments made by items 2 and 3 apply in relation to expenditure incurred on or after 12 May 2004.


(2) Those amendments do not apply to expenditure incurred by an entity to acquire an IRU if:

(a) the IRU was acquired by the entity before 12 May 2004; and

(b) the entity becomes a member of a consolidated group or MEC group on or after that day; and

(c) because of subsection 701-55(2) of the Income Tax Assessment Act 1997, the IRU is taken to have been acquired on or after that day.


(3) However, if:

(a) an entity incurs expenditure on or after 12 May 2004 relating to an IRU (the new right ) granted to the entity on or after that day for a cable system; and

(b) before that day, the entity had another IRU (the earlier right ) to use that cable system;

then, to the extent (if any) that the new right covers the level of capacity over that cable system that the earlier right covered, the amendments made by items 2 and 3 do not apply to so much of the expenditure as is reasonably attributable to that level of capacity.