Commonwealth Consolidated Acts

INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 - SECT 70.100

Basic application

  (1)   Section   70 - 100 (Notional disposal when you stop holding an item as trading stock) of the Income Tax Assessment Act 1997 applies to trading stock that stops being trading stock on hand of an entity on or after 1   July 1997.

Transitional provision if that section affects an assessment for 1996 - 97

  (2)   The value of trading stock to which subsection   (4) of that section applies is to be worked out using the rules in the Income Tax Assessment Act 1936 (and not the rules in Subdivision   70 - C of the Income Tax Assessment Act 1997 ) if:

  (a)   that section affects an assessment for the 1996 - 97 year of income under the Income Tax Assessment Act 1936 ; and

  (b)   an election is made under subsection   (4) of that section to value trading stock at what would have been its value at the end of an income year ending on the day it became trading stock on hand of the second entity.

Note:   Section   70 - 100 of the Income Tax Assessment Act 1997   may affect an assessment for the 1996 - 97 income year if any of the entities with an interest in the trading stock (either before or after it becomes trading stock on hand of the second entity) has a 1996 - 97 income year ending on or after 1   July 1997.