Commonwealth Consolidated Acts Commonwealth Consolidated Acts
Income Tax Assessment Act 1997
1 Paragraph 40 - 365(2)(c)
Repeal the paragraph, substitute:
(c) the original asset is acquired by an entity (other than an Australian government agency or a * foreign government agency) under a power of compulsory acquisition conferred by a law covered under subsection (2A); or
(d) you dispose of the original asset to an entity (other than a foreign government agency) in circumstances meeting all of these conditions:
(i) the disposal takes place after a notice was served on you by or on behalf of the entity;
(ii) the notice invited you to negotiate with the entity with a view to the entity acquiring the asset by agreement;
(iii) the notice informed you that if the negotiations were unsuccessful, the asset would be compulsorily acquired by the entity;
(iv) the compulsory acquisition would have been under a power of compulsory acquisition conferred by a law covered under subsection (2A); or
(e) you dispose of land onto which the original asset was fixed to an entity (other than a foreign government agency) in circumstances meeting all of these conditions:
(i) a mining lease was compulsorily granted over the land;
(ii) the lease significantly affected your use of the land;
(iii) the lease was in force just before the disposal;
(iv) the entity to which you dispose of the land was the lessee under the lease; or
(f) you dispose of land onto which the original asset was fixed to an entity (other than a foreign government agency) in circumstances meeting all of these conditions:
(i) a mining lease would have been compulsorily granted over the land if you had not disposed of it;
(ii) that lease would have significantly affected your use of the land;
(iii) the entity to which you dispose of the land would have been the lessee under the lease.
2 After subsection 40 - 365(2)
Insert:
(2A) A law is covered under this subsection if it is:
(a) an * Australian law (other than Chapter 6A of the Corporations Act 2001 ); or
(b) a * foreign law (other than a foreign law corresponding to Chapter 6A of the Corporations Act 2001 ).
3 After paragraph 124 - 70(1)(a)
Insert:
(aa) it is compulsorily acquired by an entity (other than an Australian government agency or a * foreign government agency) under a power of compulsory acquisition conferred by a law covered under subsection (1A);
4 Paragraph 124 - 70(1)(c)
Repeal the paragraph, substitute:
(c) you * dispose of it to an entity (other than a foreign government agency) in circumstances meeting all of these conditions:
(i) the disposal takes place after a notice was served on you by or on behalf of the entity;
(ii) the notice invited you to negotiate with the entity with a view to the entity acquiring the asset by agreement;
(iii) the notice informed you that if the negotiations were unsuccessful, the asset would be compulsorily acquired by the entity;
(iv) the compulsory acquisition would have been under a power of compulsory acquisition conferred by a law covered under subsection (1A);
(ca) you dispose of it to an entity (other than a foreign government agency) in circumstances meeting all of these conditions:
(i) the asset is land over which a mining lease was compulsorily granted;
(ii) the lease significantly affected your use of the land;
(iii) the lease was in force just before the disposal;
(iv) the entity to which you dispose of the land was the lessee under the lease;
(cb) you dispose of it to an entity (other than a foreign government agency) in circumstances meeting all of these conditions:
(i) the asset is land over which a mining lease would have been compulsorily granted if you had not disposed of it;
(ii) that lease would have significantly affected your use of the land;
(iii) the entity to which you dispose of the land would have been the lessee under the lease.
5 After subsection 124 - 70(1)
Insert:
(1A) A law is covered under this subsection if it is:
(a) an * Australian law (other than Chapter 6A of the Corporations Act 2001 ); or
(b) a * foreign law (other than a foreign law corresponding to Chapter 6A of the Corporations Act 2001 ).
6 Application
(1) The amendments made by this Schedule apply in relation to CGT events that happen after 1 pm (by legal time in the Australian Capital Territory) on 11 November 1999.
(2) The amendments made by this Schedule apply in relation to balancing adjustment events that occur after 30 June 2001.
(3) Former section 42 - 293 of the Income Tax Assessment Act 1997 applies in relation to balancing adjustment events that occurred during the period:
(a) starting just after 1 pm (by legal time in the Australian Capital Territory) on 11 November 1999; and
(b) ending just before 1 July 2001;
as if the amendments made by this Schedule to section 40 - 365 of that Act were made (with any necessary changes) to former section 42 - 293.
(4) To avoid doubt:
(a) those necessary changes to those amendments include the following:
(i) item 1 applies in relation to former paragraph 42 - 293(2)(c);
(ii) references in item 1 to the original asset are taken to be references to the original plant;
(iii) item 2 applies in relation to former section 42 - 293; and
(b) a choice under former subsection 42 - 293(1) may be made after the commencement of this item in relation to those amendments; and
(c) the Commissioner may allow, after the commencement of this item, a further period under former subsection 42 - 293(3) in relation to those amendments.