Income Tax Assessment Act 1936

SCHEDULE 2  

Section 79A

PART II  

Zone B  


1. All that portion of the mainland of Australia lying south of the southern boundary of Zone A and north of a line commencing at the northeastern corner of the shire of Broadsound in the State of Queensland thence generally westerly and southerly by the boundaries dividing the Shires of Broadsound Belyando Jericho Bauhinia Booringa and Balonne from the Shires of Sarina Nebo Wangaratta Dalrymple Aramac Barcaldine Blackall Tambo Murweh and Paroo to the boundary dividing the States of Queensland and New South Wales thence east by that boundary to its junction with the Barwon River at the northeastern corner of the Western Division in the State of New South Wales thence generally southwesterly by part of the boundary dividing the Central and Western Divisions of the State of New South Wales to the northernmost corner of the County of Mouramba and by the boundaries dividing the Counties of Mouramba Mossgiel Waljeers Kilfera Taila Wentworth and Tara from the Counties of Robinson Booroondarra Woore Manara Perry and Windeyer to the boundary dividing the States of New South Wales and South Australia thence south by that boundary to the northeast corner of the County of Hamley in the State of South Australia thence by the north boundaries of the Counties of Hamley and Young part of the north boundary of the County of Burra part of the east boundary of the District Council District of Hallett the east and a north boundary of the District Council District of Peterborough east and north boundaries of the District Council District of Carrieton to the southeast corner of the District Council District of Hawker the eastern north and west boundaries of that District Council District a western boundary of the District Council District of Kanyaka to the north boundary of the County of Frome thence west by part of that boundary and its prolongation west to the west boundary of the County of Manchester thence by the boundaries dividing the Counties of Manchester York and Buxton from the County of Hore-Ruthven part of the west boundary of the County of Buxton and part of the western boundary of the District Council District of Kimba to the easternmost corner of the District Council District of Le Hunte thence generally northwesterly by the east and north boundaries of the District Council Districts of Le Hunte and Streaky Bay and the east north and west boundaries of the District Council District of Murat Bay to the southern coastline thence by that coastline westerly to the southwestern corner of the Road District of Phillips River in the State of Western Australia thence generally northwesterly by the boundaries dividing the Road Districts of Gnowangerup Kent Lake Grace Kulin Kondinin Narembeen Merredin and Nungarin from the Road Districts of Phillips River Yilgarn and Westonia to the northeast corner of the Road District of Nungarin thence westerly and northwesterly by the boundaries dividing the Road Districts of Nungarin Kununoppin-Trayning Wyalkatchem Dowerin and Wongan-Ballidu from the Road Districts of Mukinbudin Mt Marshall Koorda and Dalwallinu to the No. 2 rabbit proof fence by that fence to the north boundary of the Road District of Perenjori and thence by the boundaries dividing the Road Districts of Perenjori Morawa Mingenew Irwin Greenough and Geraldton from the Road Districts of Yalgoo Mullewa and Upper Chapman to the western coastline.


2. All that portion of Tasmania lying south and west of a line commencing on the west coast at the southwest corner of the County of Wellington and thence generally easterly and southerly by the boundaries dividing the counties of Wellington Devon and Westmorland from the counties of Russell Lincoln and Cumberland to the point on the River Shannon where the hydro-electric transmission line from Waddamana to Launceston crosses that river thence in a straight line in a general southwesterly direction to the trigonometrical station known as Fishers Sugar Loaf thence by a straight line in a general southwesterly direction to the point where the Lyell Highway crosses the Dee River thence by a straight line in a general southwesterly direction to the confluence of the Derwent and Florentine Rivers thence by a straight line in a general southerly direction passing through the trigonometrical station on South East Cape to the southern coastline.


3. All the islands forming part of Australia lying adjacent to the coastline of either of the portions of Australia described in paragraphs 1 and 2.


4. King Island, Tasmania.


5. All the islands in the group of islands known as the Furneaux Group, Tasmania.


FORMER SCHEDULE 2C - FORGIVENESS OF COMMERCIAL DEBTS  

(Repealed by No 79 of 2010)

SCHEDULE 2D - TAX EXEMPT ENTITIES THAT BECOME TAXABLE  

Division 57 - Tax exempt entities that become taxable  

Guide to Division 57  

SECTION 57-1   WHAT THIS DIVISION IS ABOUT  


This Division is about the income tax treatment of a taxpayer whose income ceases to be wholly exempt. Broadly, income, outgoings, gains and losses are attributed to the periods before and after the loss of full exemption.

Subdivision 57-A - Key concepts  

SECTION 57-5  

57-5   ENTITIES TO WHICH THIS DIVISION APPLIES  


If:


(a) at a particular time, all of the income of a taxpayer is wholly exempt from income tax; and


(b) immediately after that time, the taxpayer ' s income becomes to any extent assessable income;

then:


(c) the taxpayer is a transition taxpayer ; and


(d) the time when the taxpayer ' s income becomes to that extent assessable is the transition time ; and


(e) the year of income in which the transition time occurs is the transition year for the taxpayer.

Subdivision 57-B - Predecessors of the transition taxpayer  

SECTION 57-10   ACTIVITIES OF TRANSITION TAXPAYER ' S PREDECESSOR ATTRIBUTED TO TRANSITION TAXPAYER  

57-10(1)    
If:


(a) at the transition time, the transition taxpayer performs particular functions or carries on particular activities; and


(b) during any period before the transition taxpayer first began to perform the functions or carry on the activities, an exempt government entity performed those same functions or carried on those same activities; and


(c) at the end of the period, responsibility for performing the functions or carrying on the activities was transferred, either directly or through one or more other exempt government entities, to the transition taxpayer;

this Division applies as if, during that period, anything done by or to the exempt government entity in performing those functions or carrying on those activities had instead been done by or to the transition taxpayer.

Note:

As a result of this provision, the transition taxpayer may for example be able to deduct after the transition time, under Division 40 of the Income Tax Assessment Act 1997 as modified by Subdivision 57-J of this Schedule, a portion of allowable capital expenditure incurred before the transition time by an exempt government entity whose functions were transferred to the transition taxpayer.


57-10(2)    
An exempt government entity is:


(a) the Commonwealth, a State or a Territory; or


(b) an STB, within the meaning of Division 1AB of Part III , that is exempt from tax under that Division.

Subdivision 57-C - Time when income derived  

SECTION 57-15   TIME WHEN INCOME DERIVED  

57-15(1)    
To the extent that income derived by the transition taxpayer before the transition time is in respect of:


(a) services rendered; or


(b) goods provided; or


(c) the doing of any other thing;

at or after the transition time, the income is treated for the purposes of this Act as having been derived at the time the services were rendered, the goods were provided or the thing was done, as the case requires.


57-15(2)    
To the extent that income derived by the transition taxpayer at or after the transition time is in respect of:


(a) services rendered; or


(b) goods provided; or


(c) the doing of any other thing;

before the transition time, the income is treated for the purposes of this Act as having been derived before that time.


Subdivision 57-D - Time when losses and outgoings incurred  

SECTION 57-20   TIME WHEN LOSSES AND OUTGOINGS INCURRED  

57-20(1)    
To the extent that a loss or outgoing (within the meaning of section 51 of this Act or section 8-1 of the Income Tax Assessment Act 1997 , as appropriate) incurred by the transition taxpayer before the transition time is in respect of:


(a) services rendered; or


(b) goods provided; or


(c) the doing of any other thing;

at or after the transition time, the loss or outgoing is treated for the purposes of this Act as having been incurred at the time the services were rendered, the goods were provided or the thing was done, as the case requires.


57-20(2)    
To the extent that a loss or outgoing (within the meaning of section 51 of this Act or section 8-1 of the Income Tax Assessment Act 1997 , as appropriate) incurred by the transition taxpayer at or after the transition time is in respect of:


(a) services rendered; or


(b) goods provided; or


(c) the doing of any other thing;

before the transition time, the loss or outgoing is treated for the purposes of this Act as having been incurred before that time.


Subdivision 57-E - Assets and liabilities  

SECTION 57-25   DEEMED DISPOSAL AND RE-ACQUISITION OF ASSETS  

57-25(1)    
This section applies to:


(a) the disposal of an asset by the transition taxpayer after the transition time; and


(b) a CGT event that happens after the transition time in relation to an asset owned by the transition taxpayer;

where the transition taxpayer owned the asset at all times from the transition time until the disposal or the CGT event.