Tax Law Improvement Act 1997 (121 of 1997)

Schedule 5   Trading stock (and some related matters)

Part 2   Consequential amendment of the Income Tax Assessment Act 1997

26   Subsection 995-1(1)

Insert:

cost :

(a) cost of a unit of *plant for depreciation purposes has the meaning given by Subdivision 42-B; and

(b) cost of an item of *trading stock, in the case of an animal that you acquired by natural increase, has the meaning given by section 70-55.

Note: The cost of an animal acquired by natural increase before the 1997-98 income year is the cost price of the animal under section 34 of the Income Tax Assessment Act 1936. See subsection 70-55(2) of the Income Tax (Transitional Provisions) Act 1997.