Tax Law Improvement Act 1997 (121 of 1997)

Schedule 5   Trading stock (and some related matters)

Part 1   Amendment of the Income Tax (Transitional Provisions) Act 1997

2   At the end of Part 3-45

Add:

[The next Division is Division 385.]

Division 385 - Primary production

Table of sections

385-100 Application of Subdivision 385-E of the Income Tax Assessment Act 1997 to disposal or death of live stock on or after 1 July 1997

385-130 Application of Subdivision 385-F of the Income Tax Assessment Act 1997 to loss of live stock or trees in 1997-98 and later income years

385-135 Application of Subdivision 385-G of the Income Tax Assessment Act 1997 to earlier than normal wool clips in 1997-98 and later income years

385-100 Application of Subdivision 385-E of the Income Tax Assessment Act 1997 to disposal or death of live stock on or after 1 July 1997

Subdivision 385-E (Primary producer can elect to spread or defer tax on profit from forced disposal or death of live stock) of the Income Tax Assessment Act 1997 applies to a disposal or death of live stock on or after 1 July 1997.

[The next section is section 385-130.]

385-130 Application of Subdivision 385-F of the Income Tax Assessment Act 1997 to loss of live stock or trees in 1997-98 and later income years

Subdivision 385-F (Insurance for loss of live stock or trees) of the Income Tax Assessment Act 1997 applies if your assessable income for the 1997-98 income year or a later income year would include an insurance recovery.

385-135 Application of Subdivision 385-G of the Income Tax Assessment Act 1997 to earlier than normal wool clips in 1997-98 and later income years

(1) Subdivision 385-G (Double wool clips) of the Income Tax Assessment Act 1997 applies if your assessable income for the 1997-98 income year or a later income year would include the proceeds of the sale of 2 wool clips.

Election to defer including profit on second wool clip in 1997-98 income year

(2) Section 385-135 (Election to defer including profit on second wool clip) of the Income Tax Assessment Act 1997 applies to the 1997-98 income year as if:

(a) subparagraph 385-135(3)(b)(ii) referred to wool that you took into account at cost price under section 31 of the Income Tax Assessment Act 1936 (instead of wool you took into account at cost under Division 70 of the Income Tax Assessment Act 1997); and

(b) subparagraph 385-135(3)(b)(iii) referred to an election under section 26BA of the Income Tax Assessment Act 1936 (instead of an election under section 385-135 itself).