Commonwealth Consolidated Acts

DEFENCE ACT 1903 - SECT 122AA

  (1)   This section applies where a CGT event (within the meaning of the Income Tax Assessment Act 1997 ) happens in relation to a CGT asset (within the meaning of that Act) of the Commonwealth and all of the following conditions are satisfied:

  (aa)   the event involves a company acquiring the asset;

  (a)   the company is:

  (i)   Australian Defence Industries Pty Ltd; or

  (ii)   Aerospace Technologies of Australia Pty Ltd;

  (b)   the event happens under a scheme:

  (i)   for the reorganisation of defence - related activities; and

  (ii)   associated with the establishment of the company;

  (c)   for the purposes of the Income Tax Assessment Act 1997 , the asset was acquired by the Commonwealth before 20   September 1985;

  (d)   before 20   September 1985, the asset was used, or intended for use, for defence - related purposes;

  (2)   For the purposes of Parts   3 - 1 and 3 - 3 of the Income Tax Assessment Act 1997 , the company is taken to have acquired the asset before 20   September 1985.

  (4)   In calculating the deductions (if any) allowable to the company under Subdivision   40 - B of the Income Tax Assessment Act 1997 in respect of the asset, the adjustable value of the asset to the company at the time of the acquisition of the asset is the amount that would have been its adjustable value to the Commonwealth just before that time if:

  (a)   the Commonwealth had been a taxpayer; and

  (b)   the asset had been used by the Commonwealth exclusively for the purpose of producing assessable income.

  (5)   Section   170 of the Income Tax Assessment Act 1936 does not prevent the amendment of an assessment for the purpose of giving effect to this section.