Commonwealth Consolidated Acts

TAX LAW IMPROVEMENT ACT 1997 - SCHEDULE 4

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

1   Part 2 - 5 (link note after heading)

Repeal the link note.

2   Before Division 28

Insert:

[The next Division is Division 25.]

Division 25 -- Some amounts you can deduct

Table of sections

25 - 1   Application of Division 25 of the Income Tax Assessment Act 1997

25 - 40   Application of section 25-40 of the Income Tax Assessment Act 1997

25 - 45   Application of section 25- 45 of the Income Tax Assessment Act 1997

25 - 1   Application of Division 25 of the Income Tax Assessment Act 1997

    Division 25 (Some amounts you can deduct) of the Income Tax Assessment Act 1997 applies to assessments for the 1997 - 98 income year and later income years, except as provided by this Division.

[The next section is section 25 - 40.]

25 - 40   Application of section 25-40 of the Income Tax Assessment Act 1997

    Section 25-40 (Loss from profit-making undertaking or plan) of the Income Tax Assessment Act 1997 applies to a loss arising in the 1997-98 income year or a later income year, even if the undertaking or plan was entered into, or began to be carried on or carried out, before the 1997-98 income year.

25 - 45   Application of section 25- 45 of the Income Tax Assessment Act 1997

    Section 25-45 (which is about deductions for losses by theft etc.) of the Income Tax Assessment Act 1997 applies to a loss discovered in the 1997-98 income year or a later income year.

Division 26 -- Some amounts you cannot deduct, or cannot deduct in full

Table of sections

26 - 1   Application of Division 26 of the Income Tax Assessment Act 1997

26 - 30   Application of section 26-30 of the Income Tax Assessment Act 1997

26 - 1   Application of Division 26 of the Income Tax Assessment Act 1997

    Division 26 of the Income Tax Assessment Act 1997 (which prevents or limits deductions) applies to assessments for the 1997 - 98 income year and later income years, except as provided by this Division.

[The next section is section 26 - 30.]

26 - 30   Application of section 26-30 of the Income Tax Assessment Act 1997

    Section 26-30 (which denies a deduction for relative's travel expenses) of the Income Tax Assessment Act 1997 applies to travel on or after 1 July 1997 .

[The next Division is Division 28.]

3   Section 28-100 (link note)

Repeal the link note.

4   After Division 28

Insert:

Division 34 -- Non-compulsory uniforms

Table of sections

34-1   Application of Division 34 of the Income Tax Assessment Act 1997

34-5   Things done under section 51AL of the Income Tax Assessment Act 1936

34-1   Application of Division 34 of the Income Tax Assessment Act 1997

    Division 34 (Non-compulsory uniforms) of the Income Tax Assessment Act 1997 applies to assessments for the 1997 - 98 income year and later income years.

34-5   Things done under section 51AL of the Income Tax Assessment Act 1936

  (1)   From 1 July 1997 , anything done under or in connection with a provision of section 51AL of the Income Tax Assessment Act 1936 has effect as if it had been done under or in connection with the corresponding provision of Division 34 of the Income Tax Assessment Act 1997 .

  (2)   From 1 July 1997 , a thing described in column 2 of an item in the table (as that thing existed at the end of 30 June 1997 ) has effect as if it were the thing described in column 3 of that item.

    Column 2 refers to provisions of the Income Tax Assessment Act 1936 . Column 3 refers to provisions of the Income Tax Assessment Act 1997.

  (3)   Subsection (2) does not limit the generality of subsection (1).

[The next Division is Division 36.]

Part   2 -- Consequential amendment of the Income Tax Assessment Act 1997

5   Section 12-5 (table item headed "accrued leave transfer payments")

Omit " 51(3) ", substitute "26-10".

6   Section 12-5 (table item headed "associated persons")

Repeal the item.

7   Section 12-5 (table item headed "bad debts")

Omit:

substitute:

8   Section 12-5 (table item headed "boats")

Omit " 51AB ", substitute "26-50".

9   Section 12-5 (table item headed "borrowing expenses")

Omit " 67 ", substitute "25-25".

10   Section 12-5 (table item headed "club fees")

Omit "51AB ", substitute "26-45".

11   Section 12-5 (table item headed "education expenses")

Omit " 51(6), 51(6A )", substitute "26-20".

12   Section 12-5 (table item headed "election expenses")

Omit " 74, 74B ", substitute "25-60, 25-70".

13   Section 12-5 (table item headed "embezzlement")

Repeal the item, substitute:

14   Section 12-5 (after table item headed "exploration and prospecting")

Insert:

16   Section 12-5 (table item headed "interest")

Omit " 51(5) ", substitute "25-5".

17   Section 12-5 (table item headed "larceny")

Repeal the item.

18   Section 12-5 (at the end of table item headed "leases")

Add:

19   Section 12-5 (table item headed "lease document expenses")

Omit " 68 ", substitute "25-20".

20   Section 12-5 (table item headed "leave payments")

Omit " 51(3) " (where occurring), substitute "26-10".

21   Section 12-5 (table item headed "legal expenses")

Repeal the item.

22   Section 12-5 (table item headed "leisure facilities")

Omit " 51AB ", substitute "26-50".

23   Section 12-5 (table item headed "losses")

Omit " 52 " (wherever occurring), substitute "25-40".

24   Section 12-5 (table item headed "mortgage")

Omit " 67A ", substitute "25-30".

25   Section 12-5 (table item headed "penalties")

Omit " 51(4) ", substitute "26-5".

26   Section 12-5 (after table item headed "quarrying")

Insert:

27   Section 12-5 (table item headed "relatives, payments to")

Repeal the item, substitute:

28   Section 12-5 (table item headed "repairs")

Omit " 53 ", substitute "25-10".

29   Section 12-5 (table item headed "repairs")

Omit " 53AA ", substitute "25-15".

30   Section 12-5 (table item headed "subscriptions to associations")

Omit " 73 ", substitute "25-55".

31   Section 12-5 (table item headed "tax-related expenses")

Omit " 69 ", substitute "25-5".

32   Section 12 - 5 (after the table item headed "telephone lines")

Insert:

33   Section 12-5 (table item headed "travel expenses")

Omit " 51AG ", substitute "26-30".

34   Section 12-5 (table item headed "uniforms")

Omit " 51AL ", substitute "Division 34".

35   Paragraphs 165-55(5)(a) and (b)

Repeal the paragraphs, substitute:

  (a)   deductions for bad debts under section 8- 1 (about general deductions) or section 25-35 (about bad debts);

  (b)   deductions for losses on debt/equity swaps under section 63E of the Income Tax Assessment Act 1936 ;

36   Paragraphs 165-65(4)(a) and (b)

Repeal the paragraphs, substitute:

  (a)   deductions for bad debts under section 8- 1 (about general deductions) or section 25-35 (about bad debts);

37   Paragraphs 165-70(3)(a) and (b)

Repeal the paragraphs, substitute:

  (a)   deductions for bad debts under section 8- 1 (about general deductions) or section 25-35 (about bad debts);

38   Paragraph 900-30(7)(b)

Repeal the paragraph, substitute:

  (b)   expenditure you incur that qualifies as a deduction under section 25-60 (Parliament election expenses) of this Act or section 74A (about local governing body election expenses) of the Income Tax Assessment Act 1997 .

39   Subsection 995 - 1(1)

Insert:

"AAT" means the Administrative Appeals Tribunal.

40   Subsection 995 - 1(1)

Insert:

"accrued leave transfer payment" has the meaning given by subsection 26-10(2).

41   Subsection 995 - 1(1)

Insert:

"agent" of an entity (the principal ) includes:

  (a)   if the principal is outside Australia --an entity that, in Australia , and for or on behalf of the principal, holds money of the principal or has control, receipt or disposal of money of the principal; and

  (b)   an entity declared by the Commissioner (in writing) to be the principal's agent or sole agent for specified purposes of this Act.

42   Subsection 995 - 1(1)

Insert:

"approved occupational clothing guidelines" has the meaning given by subsection 34-55(1).

43   Subsection 995 - 1(1)

Insert:

"child" of a person includes the person's adopted child, step - child or ex - nuptial child.

44   Subsection 995 - 1(1) (definition of club )

Repeal the definition.

45   Subsection 995 - 1(1)

Insert:

"design" of a uniform has the meaning given by subsection 34-25(2).

46   Subsection 995 - 1(1)

Insert:

"disease" has the meaning given by subsection 34-20(3).

47   Subsection 995 - 1(1)

Insert:

"fringe benefit" means:

  (a)   a fringe benefit as defined by subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986 ; and

  (b)   a benefit that would be a fringe benefit (as defined by subsection 136(1) of that Act) if paragraphs (d) and (e) of the definition of employer in that subsection of that Act were omitted.

48   Subsection 995 - 1(1)

Insert:

"Industry Secretary" has the meaning given by subsection 34-25(1).

49   Subsection 995 - 1(1)

Insert:

"legal practitioner" means a person who is enrolled as a barrister, a solicitor or a barrister and solicitor of:

  (a)   a federal court; or

  (b)   a court of a State or Territory.

50   Subsection 995 - 1(1)

Insert:

"leisure facility" has the meaning given by subsection 26-50(2).

51   Subsection 995 - 1(1)

Insert:

"non-compulsory" , in relation to a * uniform, has the meaning given by subsection 34-15(2).

"non-compulsory uniform" means a * uniform that is * non - compulsory.

52   Subsection 995 - 1(1)

Insert:

"occupation specific clothing" has the meaning given by subsection   34-20(1).

53   Subsection 995 - 1(1)

Insert:

"period of the loan" has the meaning given by subsection 25-25(5).

54   Subsection 995 - 1(1)

Insert:

"protective clothing" has the meaning given by subsection 34-20(2).

55   Subsection 995 - 1(1)

Insert:

"provide" a * fringe benefit includes allow, confer, give, grant or perform the benefit.

Note:   This is based on the definition of provide in subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986 .

56   Subsection 995 - 1(1)

Insert:

"recognised tax adviser" means:

  (a)   a * registered tax agent; or

  (b)   a * legal practitioner; or

  (c)   an entity which is not a * registered tax agent but who is exempted under subsection 251L(2) of the Income Tax Assessment Act 1936 from the operation of section 251L (Unregistered tax agents not to charge fees) of that Act.

57   Subsection 995 - 1(1)

Insert:

"recreational club" has the meaning given by subsection 26-45(2).

58   Subsection 995 - 1(1)

Insert:

"registered tax agent" means an entity which is registered as a tax agent under Part VIIA (Registration of tax agents) of the Income Tax Assessment Act 1936 .

59   Subsection 995 - 1(1)

Insert:

"related entity" has the meaning given by subsections 26-35(2) and (3).

60   Subsection 995 - 1(1)

Insert:

"Senior Executive Service office" has the meaning given by section   7 (Interpretation) of the Public Service Act 1922 .

61   Subsection 995- 1 (definition of sporting club )

Omit " * club", substitute "club".

62   Subsection 995 - 1(1)

Insert:

"uniform" has the meaning given by subsection 34-15(1).

Part   3 -- Consequential amendment of the Income Tax Assessment Act 1936

63   Paragraph 51AAA(b)

Omit "this Subdivision", substitute "a provision listed in the table in subsection (2)".

64   At the end of section 51AAA

Add:

  (2)   The table lists provisions allowing deductions that are affected by subsection (1). Provisions of the Income Tax Assessment Act 1997 are identified in normal text. The other provisions, in bold , are provisions of the Income Tax Assessment Act 1936 .

65   Before subsection 51(3)

Insert:

  (3A)   Subsection (3) does not apply to the 1997-98 year of income or a later year of income.

Note:   Section 26-10 (Leave payments) of the Income Tax Assessment Act 1997 deals with the deductibility of leave payments.

66   Before subsection 51(4)

Insert:

  (4A)   Subsection (4) does not apply to the 1997-98 year of income or a later year of income.

Note:   Section 26-5 (Penalties) of the Income Tax Assessment Act 1997 denies a deduction for penalties.

67   Before subsection 51(5)

Insert:

  (5A)   Subsection (5) does not apply to the 1997-98 year of income or a later year of income.

Note:   Section 25-5 (Tax-related expenses) of the Income Tax Assessment Act 1997 deals with the deductibility of interest.

68   Before subsection 51(6)

Insert:

  (6AA)   Subsection (6) does not apply to the 1997-98 year of income or a later year of income.

Note:   Section 26-20 (HECS and student assistance) of the Income Tax Assessment Act 1997 denies a deduction for certain amounts paid under the Higher Education Funding Act 1988 and the Student Assistance Act 1973 .

69   Before subsection 51AB(1)

Insert:

  (1A)   This section does not apply to the 1997-98 year of income or a later year of income.

Note 1:   Section 26-45 (Club expenses) of the Income Tax Assessment Act 1997 deals with the deductibility of club expenses.

Note 2:   Section 26-50 (Expenses for a leisure facility or boat) of the Income Tax Assessment Act 1997 deals with the deductibility of leisure facility and boat expenses.

70   Subsection 51AD(16)

Omit "section 53", substitute " section 25-10 (Repairs) of the Income Tax Assessment Act 1997 ".

71   Paragraph 51AD(16)(b)

After "or (13)", insert "of this section".

72   Subsection 51AD(17)

After "section 67", insert "of this Act or section 25-25 (Borrowing expenses) of the Income Tax Assessment Act 1997 ".

73   Paragraph 51AD(17)(a)

After "subsection 67(2)", insert "of this Act or subsection 25-25(6) of that Act".

74   Paragraph 51AD(17)(b)

After "or (13)", insert "of this section".

75   Subsection 51AD(18)

After "section 68", insert "of this Act or section 25-20 (Lease document expenses) of the Income Tax Assessment Act 1997 ".

76   Paragraph 51AD(18)(b)

After "or (13)", insert "of this section".

77   Before subsection 51AG(1)

Insert:

  (1AA)   This section does not apply to travel on or after 1 July 1997 .

Note:   Section 26-30 (Relative's travel expenses) of the Income Tax Assessment Act 1997 deals with the deductibility of relatives' travel expenses.

78   Application of amendment of subsection 51AG(1)

Section 4 of this Act does not apply to the amendment made by item   77.

79   Before subsection 51AL(1)

Insert:

  (1A)   This section does not apply to the 1997-98 year of income or a later year of income.

Note:   Division 34 (Non-compulsory uniforms) of the Income Tax Assessment Act 1997 deals with the deductibility of expenditure incurred on non-compulsory uniforms.

80   Before subsection 52(1A)

Insert:

  (1AA)   This section does not apply to a loss arising in the 1997-98 year of income or a later year of income from the carrying on or carrying out of a profit-making undertaking or scheme, even if the undertaking or scheme was entered into, or began to be carried on or carried out, before the 1997-98 year of income.

Note:   Section 25-40 (Loss from profit-making scheme) of the Income Tax Assessment Act 1997 deals with such a loss.

81   Before subsection 53(1)

Insert:

  (1A)   This section does not apply to the 1997-98 year of income or a later year of income.

Note:   Section 25-10 (Repairs) of the Income Tax Assessment Act 1997 deals with the deductibility of expenditure incurred on repairs.

82   At the end of section 53AA

Add:

  (2)   This section does not apply to the 1997-98 year of income or a later year of income.

Note:   Section 25-15 (Amount paid for lease obligation to repair) of the Income Tax Assessment Act 1997 deals with the deductibility of amounts paid pursuant to lease obligations to repair premises.

83   Before subsection 63(1)

Insert:

  (1AAA)   This section (other than subsection (1A)) does not apply to the 1997-98 year of income or a later year of income.

Note:   Section 25- 35 of the Income Tax Assessment Act 1997 deals with the deductibility of bad debts in those income years.

84   Subsection 63(1A)

Omit "the taxpayer shall, for the purposes of subsection (1), be taken to have brought to account as", substitute "then, for the purposes of paragraph 25-35(1)(a) of the Income Tax Assessment Act 1997 , there is taken to have been included in the taxpayer's".

85   Subsection 63A(1)

Repeal the subsection, substitute:

  (1)   This section has effect despite sections 8-1 and 25- 35 of the Income Tax Assessment Act 1997 .

86   Subsection 63A(14)

Omit "section 51 or 63", substitute "section 8-1 or 25- 35 of the Income Tax Assessment Act 1997 ".

87   Before subsection 63B(1)

Insert:

  (1A)   This section has effect:

  (a)   despite sections 8-1 and 25- 35 of the Income Tax Assessment Act 1997 and section 63A of this Act; but

  (b)   subject to section 63C of this Act.

88   Subsection 63B(1)

Omit everything before "debt" (first occurring), substitute "A".

89   Subsection 63B(11)

Omit "section 51 or 63", substitute "section 8-1 or 25- 35 of the Income Tax Assessment Act 1997 ".

90   Subsection 63C(4)

Omit "section 51 or 63", substitute "section 8-1 or 25- 35 of the Income Tax Assessment Act 1997 ".

91   Subsection 63CA(3)

After "section 8- 1", insert "or 25-35".

92   Subparagraph 63D(1)(a)(i)

Omit "63 of this Act or section 8-1", substitute "8-1 or 25-35".

93   Subparagraph 63D(1)(a)(ii)

After "section 63E", insert "of this Act".

94   Paragraph 63D(1)(c)

After "section 23AH", insert "of this Act".

95   Subsection 63D(1) (paragraph (d) of the definition of Eligible debt term )

After "Part IIIA", insert "of this Act".

96   Paragraph 63E(3)(b)

Omit "63 of this Act or section 8-1", substitute "8-1 or 25-35".

97   Subparagraph 63F(1)(a)(i)

Omit "63 of this Act or section 8-1", substitute "8-1 or 25-35".

98   Subparagraph 63F(1)(a)(ii)

After "section 63E", insert "of this Act".

99   Paragraph 63F(1)(b)

After "sections", insert "or under section 51 or 63 of this Act".

100   Paragraph 63F(1)(c)

After "section 63E", insert "of this Act".

101   At the end of section 64

Add:

  (2)   This section does not apply to the 1997-98 year of income or a later year of income.

102   Before subsection 64A(1)

Insert:

  (1A)   This section does not apply to the 1997-98 year of income or a later year of income.

Note:   This section has no equivalent in the Income Tax Assessment Act 1997 . Legal expenses may be deductible under section 8- 1 of that Act (about general deductions) or under other provisions.

103   Before subsection 65(1)

Insert:

  (1AA)   This section (other than subsections (1B) and (1C)) does not apply to the 1997-98 year of income or a later year of income.

Note 1:   Section 26-35 (Reduction of deduction for amounts paid to related entities) of the Income Tax Assessment Act 1997 deals with the deductibility of payments made to relatives or other related entities.

Note 2:   Section 26-40 (Maintaining your family) of the Income Tax Assessment Act 1997 deals with the deductibility of expenditure incurred on certain relatives.

104   Subsection 65(1B)

Omit "subsection (1)", substitute "section 26-35 (Reduction of deduction for amounts paid to related entities) of the Income Tax Assessment Act 1997 ".

105   Subsection 65(1B)

After "section 90", insert "of this Act".

106   Paragraph 65(1B)(b)

Omit "subsection (1A)", substitute "subsection 26- 35(4) of the Income Tax Assessment Act 1997 ".

107   Before subsection 67(1A)

Insert:

  (1AA)   This section does not apply to expenditure incurred in the 1997-98 year of income or a later year of income.

Note:   Section 25-25 (Borrowing expenses) of the Income Tax Assessment Act 1997 deals with the deductibility of borrowing expenses.

108   At the end of section 67A

Add:

  (2)   This section does not apply to the 1997-98 year of income or a later year of income.

Note:   Section 25-30 (Expenses of discharging a mortgage) of the Income Tax Assessment Act 1997 deals with the deductibility of expenses related to discharging mortgages.

109   At the end of section 68

Add:

  (2)   This section does not apply to the 1997-98 year of income or a later year of income.

Note:   Section 25-20 (Lease document expenses) of the Income Tax Assessment Act 1997 deals with the deductibility of expenses related to lease documents.

110   Before subsection 69(1)

Insert:

  (1A)   This section (other than subsection (7)) does not apply to the 1997 - 98 year of income or a later year of income. Subsection (9) does not apply to the use of property in the 1997-98 year of income or a later year of income.

Note:   Section 25-5 (Tax-related expenses) of the Income Tax Assessment Act 1997 deals with the deductibility of tax-related expenses.

111   Subsection 69(7)

Omit "this section", substitute "25-5 (Tax-related expenses) of the Income Tax Assessment Act 1997 ".

112   Paragraph 69(7)(b)

Omit "subsection (1)", substitute "that section".

113   At the end of section 71

Add:

  (2)   This section does not apply to a loss ascertained in the 1997-98 year of income or a later year of income.

Note:   Section 25-45 (Loss by theft etc.) of the Income Tax Assessment Act 1997 deals with the deductibility of losses caused by theft.

114   Before subsection 72(1)

Insert:

  (1AA)   This section does not apply to the 1997-98 year of income or a later year of income.

Note:   Rates and land tax may be deductible under section 8-1 of the Income Tax Assessment Act 1997 . Section 25-75 (Rates and land taxes) of that Act deals with the deductibility of rates and land taxes paid for premises used to produce mutual receipts.

115   Before subsection 73(1)

Insert:

  (1A)   This section does not apply to the 1997-98 year of income or a later year of income.

Note:   Section 25-55 (Payments to associations) of the Income Tax Assessment Act 1997 deals with the deductibility of payments made for membership of a trade, business or professional association.

116   Before subsection 74(1)

Insert:

  (1A)   This section does not apply to the 1997-98 year of income or a later year of income.

Note:   Section 25-60 (Parliament election expenses) of the Income Tax Assessment Act 1997 deals with the deductibility of election expenses of candidates for the Parliament of the Commonwealth, State or Territory.

117   Subsection 82KH(1) (paragraph (a) of the definition of relevant expenditure )

Omit "section 67", substitute "section 25-25 (Borrowing expenses) of the Income Tax Assessment Act 1997 ".

118   Subsection 82KH(1) (paragraph (b) of the definition of relevant expenditure )

Omit "section 67A", substitute "section 25-30 (Expenses of discharging a mortgage) of the Income Tax Assessment Act 1997 ".

119   Subsection 82KH(1) (paragraph (f) of the definition of relevant expenditure )

Omit "of the Income Tax Assessment Act 1997 or section 63 of this Act", substitute "or section 25- 35 of the Income Tax Assessment Act 1997 ".

120   Subsection 82KH(1ABA)

Omit "63 of this Act or section 8-1", substitute "section 8- 1 or 25-35".

121   Paragraph 82KH(1G)(a)

Omit "section 67", substitute "section 25-25 (Borrowing expenses) of the Income Tax Assessment Act 1997 ".

122   Paragraph 82KH(1G)(b)

Omit "section 67A", substitute "section 25-30 (Expenses of discharging a mortgage) of the Income Tax Assessment Act 1997 ".

123   At the end of section 82KH

Add:

  (5)   A reference in this Subdivision to a provision of the Income Tax Assessment Act 1997 includes a reference to the corresponding provision of the Income Tax Assessment Act 1936.

124   Subsection 82R(5)

Omit "section 67", substitute "section 25-25 (Borrowing expenses) of the Income Tax Assessment Act 1997 ".

125   Subsection 110(1) (definition of modified 51/52 amount )

Omit "52 of this Act or section 8-1", substitute "section 8- 1 or 25-40".

126   Subsection 110(1) (definition of ordinary 51/52 amount )

Omit "52 of this Act or section 8-1", substitute "section 8- 1 or 25-40".

127   Paragraph 111B(1)(e)

Omit "section 15 - 15", substitute "sections 15 - 15 and 25 - 40".

128   Subsection 116E(1) (definition of modified 51/52 amount )

Omit "52 of this Act or section 8-1", substitute "section 8- 1 or 25-40".

129   Subsection 116E(1) (definition of ordinary 51/52 amount )

Omit "52 of this Act or section 8-1", substitute "section 8- 1 or 25-40".

130   Paragraph 116GC(1)(e)

Omit "section 15 - 15", substitute "sections 15 - 15 and 25 - 40".

131   Paragraphs 160ZH(5)(f), 160ZH(7)(f) and 160ZH(7B)(f)

Repeal the paragraphs, substitute:

  (f)   was not provided by a recognised tax adviser (as defined by section 995-1 of the Income Tax Assessment Act 1997 ).

132   Paragraph 304(b)

Omit "section 15 - 15", substitute "sections 15 - 15 and 25 - 40".

133   Subsection 396(1)

Omit "section 15 - 15", substitute "sections 15 - 15 and 25 - 40".

134   Paragraph 399A(2)(a)

Omit "63 of this Act or section 8-1", substitute "section 8- 1 or 25-35".

135   Subsection 399A(5)

Omit "63 of this Act or section 8-1", substitute "section 8- 1 or 25-35".

136   Subsection 245-25(5) of Schedule 2C

Omit "an exception contained in subsection 51(1)", substitute "paragraphs 8-1(2)(a), (b) and (c) of the Income Tax Assessment Act 1997 (which prevent deductions for capital, private or domestic outgoings and for outgoings relating to exempt income)".

137   Subsection 245-90(3) of Schedule 2C

Omit "subsection 51(1) or section 63", substitute "section 8- 1 (about general deductions) or section 25-35 (about bad debts) of the Income Tax Assessment Act 1997 ".

Note:   The heading to section 245-90 of Schedule 2C is altered by omitting " deduction under subsection 51(1) or section 63 " and substituting " revenue deduction ".

138   Subsection 245-140(1) of Schedule 2C (table)

Omit "Subsection 67(1)", substitute " Section 25- 25 of the Income Tax Assessment Act 1997 ".

Part   4 -- Consequential amendments of other Acts

Fringe Benefits Tax Assessment Act 1986

139   Subparagraphs 143(1)(ja)(ii), 143A(e)(ii) and 143C(1)(k)(ii)

Repeal the subparagraphs, substitute:

  (ii)   where the circumstances referred to in subsection   26 - 30(2) of the Income Tax Assessment Act 1997 do not apply; and

140   Application of amendment

The amendment made by item 139 applies to travel on or after 1   July   1997 .