Commonwealth Consolidated Acts

TAXATION LAWS AMENDMENT ACT (NO. 5) 2002 - SCHEDULE 1

Income Tax (Transitional Provisions) Act 1997

1   Section   70 - 40 (link note)

Repeal the link note, substitute:

70 - 41   Value of trading stock at the start of the 2001 - 2002 income year--oysters acquired by using the traditional stick farming method

Application

  (1)   This section applies to you if:

  (a)   you carry on a business of oyster farming (other than oyster farming carried on in hatcheries); and

  (b)   you held oysters that are covered by subsection   ( 2) as trading stock on hand at the start of the 2001 - 2002 income year (the relevant stock ); and

  (c)   some or all of those oysters should have been taken into account, as items of your trading stock on hand, and under Division   70 of the Income Tax Assessment Act 1997 , at the end of the 2000 - 2001 income year; and

  (d)   none of those oysters was so taken into account.

Oysters covered by subsection

  (2)   This subsection covers oysters all of which:

  (a)   were farmed by you solely for use as food for human consumption; and

  (b)   had not yet been harvested at the start of the 2001 - 2002 income year; and

  (c)   at or before that time, were acquired by you in this manner:

  (i)   you placed plastic slats or wooden sticks in the water for the purposes of capturing oyster spat; and

  (ii)   the oysters, as spat, attached themselves to those slats or sticks;

    whether or not the oysters were, at the start of the 2001 - 2002 income year, still attached to those slats or sticks.

What happens if this section applies to you

  (3)   If this section applies to you, subsections   ( 4) to (7) have effect for the purposes of Division   70, and Subdivision   328 - E, of the Income Tax Assessment Act 1997 .

General rule

  (4)   The value of the relevant stock, as the value of items of your trading stock on hand at the start of the 2001 - 2002 income year:

  (a)   is not to be worked out under section   70 - 40 of the Income Tax Assessment Act 1997 ; and

  (b)   is the amount worked out in accordance with subsection   ( 6).

Special rule for an STS taxpayer

  (5)   If you were an STS taxpayer for the 2001 - 2002 income year, the value of all your trading stock on hand at the start of that income year:

  (a)   is not to be worked out under subsection 328 - 295(1) of the Income Tax Assessment Act 1997 ; and

  (b)   is the sum of:

  (i)   the value of the relevant stock (worked out in accordance with subsection   ( 6)); and

  (ii)   the total value of items of your trading stock on hand at the end of the 2000 - 2001 income year that was taken into account under Division   70 of that Act at the end of the 2000 - 2001 income year.

Note 1:   This means that, if no value was taken into account as mentioned in subparagraph   ( b)(ii), the value of all your trading stock on hand at the start of the 2001 - 2002 income year is the value of the relevant stock.

Note 2:   The total value mentioned in subparagraph   ( b)(ii) would not include the value of any oysters that were items of the relevant stock (see paragraph   ( 1)(d) and subsection   ( 3)).

Value of the relevant stock

  (6)   The value of the relevant stock is the amount worked out in accordance with the following method statement:

Slats and sticks used to acquire items of relevant stock

  (7)   For the purposes of subsection   ( 6), a plastic slat or wooden stick is taken to have been used to acquire items of the relevant stock if it was used in the manner described in paragraph   ( 2)(c) to capture oysters, as spat, that were items of the relevant stock.

Certain provisions are not affected

  (8)   This section does not affect the operation of any of the following provisions:

  (a)   section   102AAY of the Income Tax Assessment Act 1936 (modified application of trading stock provisions for certain non - resident trust estates);

  (b)   section   397 of that Act (modified application of trading stock provisions for eligible CFCs);

  (c)   section   57 - 115 of Schedule   2D to that Act (modified application of trading stock provisions for tax exempt entities that become taxable);

  (d)   section   165 - 115W of the Income Tax Assessment Act 1997 (trading stock decrease for a CGT asset).

[The next section is section   70 - 55.]

Income Tax Assessment Act 1997

2   Subsection 70 - 40(2) (note)

Omit "Note", substitute "Note 1".

3   At the end of subsection 70 - 40(2)

Add:

Note 2:   If you held, as trading stock at the start of the 2001 - 2002 income year, oysters that were acquired by using the traditional stick farming method, see section   70 - 41 of the Income Tax (Transitional Provisions) Act 1997 .

4   Subsection 328 - 295(1) (note)

Omit "Note", substitute "Note 1".

5   At the end of subsection 328 - 295(1)

Add:

Note 2:   If you held, as trading stock at the start of the 2001 - 2002 income year, oysters that were acquired by using the traditional stick farming method, see section   70 - 41 of the Income Tax (Transitional Provisions) Act 1997 .

6 [1]   Subsection 995 - 1(1) (the note at the end of the definition of value of an item of trading stock)  

Omit "Note", substitute "Note 1".

7 [1]   Subsection 995 - 1(1) (at the end of the definition of value of an item of trading stock)

Add:

Note 2:   For the value of oysters acquired by using the traditional stick farming method and held as trading stock at the start of the 2001 - 2002 income year, see section   70 - 41 of the Income Tax (Transitional Provisions) Act 1997 .

8   Application of amendments

The amendments of the Income Tax (Transitional Provisions) Act 1997 and the Income Tax Assessment Act 1997 made by this Schedule apply to assessments for the 2001 - 2002 income year.

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