Commonwealth Numbered Acts

INCOME TAX (CONSEQUENTIAL AMENDMENTS) ACT 1997 No. 39 of 1997 - SCHEDULE 1

Schedule 1-Consequential amendments of the Income 
Tax Assessment Act 1936  1 Before subsection 6(1)
Insert:

(1AA) So far as a provision of the Income Tax Assessment Act 1936 gives an
expression a particular meaning, the provision does not also have effect for
the purposes of the Income Tax Assessment Act 1997 (the 1997 Act), except as
provided in the 1997 Act. 2 Subsection 6(1) (definitions of assessable income,
exempt income, income tax or tax, taxable income and this Act)
Repeal the definitions, substitute:
assessable income has the meaning given by Division 6 of the Income  Tax
Assessment Act 1997 .
exempt income has the meaning given by section 6-20 of the Income  Tax
Assessment Act 1997 .
income tax or tax means income tax imposed as such by any Act, as assessed
under this Act.
taxable income has the same meaning as in the Income Tax Assessment  Act 1997
.
this Act includes:

   (a)  the Income Tax Assessment Act 1997; and

   (b)  Part IVC of the Taxation Administration Act 1953, so far as that Part
        relates to this Act or the Income Tax Assessment Act 1997. Note:
        Subsection (1AA) of this section prevents definitions in the
        Income Tax Assessment Act 1936 from affecting the interpretation of
        the Income Tax Assessment Act 1997. 3 Subsection 6(1)
Insert:
loss year has the same meaning as in the Income Tax Assessment Act  1997 .
tax loss has the same meaning as in the Income Tax Assessment Act  1997 . 4
Subsection 6C(2)
Omit "and section 25,", substitute "of this Act and sections 6-5 and 6-10 of
the Income Tax Assessment Act 1997,". 5 Subsection 6CA(3)
Omit "sections 25 and 255", substitute "section 255 of this Act and sections
6-5 and 6-10 of the Income Tax Assessment Act 1997". 6 Section 17
Add at the end:

(2) This section does not apply to the 1997-98 year of income or a later year
of income. Note: Section 4-10 of the Income Tax Assessment Act 1997 sets out
how an entity works out the amount of income tax payable on its taxable income
for the 1997-98 year of income and later years of income. 7 Subsection 18(1)
Omit "His", substitute "For the purposes of this Act, the person's". 8 Section
19
Add at the end:

(2) This section does not apply to the 1997-98 year of income or a later year
of income. Note: Subsections 6-5(4) and 6-10(3) of the
Income Tax Assessment Act  1997 treat an entity as having received an amount
if the amount has been applied or dealt with on the entity's behalf in the
1997-98 year of income or later years of income. 9 Paragraph 21A(3)(b)
Omit "Division 3", substitute "Division 3 of this Part, of this Act, and
Divisions 28 and 900 of the Income Tax Assessment Act 1997". 10 Subsection
21A(5) (definition of non-deductible entertainment expenditure)
Omit "section 51", substitute "section 8-1 of the Income Tax  Assessment Act
1997 ". 11 Paragraph 23(pa) After "income derived by a person", insert "before
the 1997-98 year of income". 12 Paragraph 23(pa)
Add at the end: Note: Subdivision 330-B of the Income Tax Assessment Act 1997
gives a genuine prospector an exemption from paying income tax on income
derived in the 1997-98 year of income or a later year of income from the sale,
transfer or assignment of rights to mine on a mining tenement in Australia. 13
Paragraph 23(r)
Repeal the paragraph, substitute:

   (r)  income derived by a non-resident from sources wholly out of Australia
        (except income that a provision of this Act includes in a taxpayer's
        assessable income on some basis other than having an Australian
        source); 14 Section 24AW
Repeal the section, substitute:
24AW Body ceasing to be an STB
If a body ceases to be an STB in a year of income (the cessation year), this
Act applies to the body as if:

   (a)  the cessation were a change which requires a company to calculate its
        taxable income and tax loss under Subdivision 165-B of the
        Income Tax Assessment Act 1997; and

   (b)  the references in that Subdivision to "company" were references to
        "body"; and

   (c)  if the body is not a company-there were no further requirement for the
        body to calculate its taxable income for the year of income under that
        Subdivision; and

   (d)  the amount of any notional loss of the body calculated under section
        165-50 of that Act for the period before the cessation were nil; and

   (e)  the body's deductions for tax losses were attributed under section
        165-55 of that Act to the period before the cessation and not to any
        other period; and

   (f)  those deductions were taken not to be full year deductions under
        section 165-55 of that Act; and

   (g)  the application of Part IIIA of this Act were modified, for the
        purposes of that Subdivision, in accordance with section 24AX of this
        Act. 15 Section 24AX
Omit "relevant period" (wherever occurring), substitute "period". 16
Subsection 24AY(1)
Omit "loss (within the meaning of section 79E or 79F), the loss", substitute
"tax loss, the tax loss". 17 Subsection 24AY(2)
Omit "losses", substitute "a tax loss". 18 Section 24AZ (definition of
relevant period)
Repeal the definition, substitute:
period means any of the periods into which the cessation year is divided under
section 165- 45 of the Income Tax Assessment Act 1997. Note: The heading to
section 24AZ is replaced by the heading "Meaning of period and prescribed
excluded STB". 19 Before subsection 25(1)
Insert :

(1A) Subsection (1) does not apply to the 1997-98 year of income or a later
year of income. Note: Sections 6-5, 6-10 and 6-15 of the
Income Tax Assessment Act  1997 set out rules for working out what amounts are
included in an entity's assessable income for the 1997-98 year of income and
later years of income. 20 Paragraphs 26AAAC(1)(b) and (c)
Omit "section 51", substitute "section 8-1 of the Income Tax  Assessment Act
1997 ". 21 Paragraph 26AJ(2)(b)
Omit "Division 3", substitute "Division 3 of this Part, of this Act, and
Divisions 28 and 900 of the Income Tax Assessment Act 1997". 22 Paragraph
26AJ(2)(d)
Omit "Subdivision F of Division 3,", substitute "Subdivisions F and GA of
Division 3 of this Part, of this Act, and Divisions 28 and 900 of the
Income Tax Assessment Act 1997,". 23 Paragraph 26AJ(3)(b)
Omit "Subdivision F of Division 3,", substitute "Subdivisions F and GA of
Division 3 of this Part, of this Act, and Divisions 28 and 900 of the
Income Tax Assessment Act 1997,". 24 Subsection 46(6A)
Repeal. 25 After subsection 46A(3)
Insert:

(3A) If this section applies to a shareholder that is a company that must work
out its taxable income for the year of income under Subdivision 165-B (Working
out the taxable income and tax loss for the income year of the change) of the
Income Tax Assessment Act 1997, this section applies to the shareholder as if:

   (a)  that Subdivision did not apply to the shareholder; and

   (b)  the shareholder were instead required to work out its taxable income
        under section 4-15 (How to work out your taxable income) of that Act.
        26 Subsections 46A(8A) and (8B)
Repeal. 27 Subsection 46A(10A)
Omit "subsections (8A) and", substitute "subsection". 28 Subsections 46A(11),
(12) and (12A)
Omit "subsection (8A) or". 29 Subsection 46A(13)
Omit "subsection (8A) or in". 30 Paragraph 46A(14)(b)
Omit "subsection (8A) or". 31 Section 48
Add at the end:

(2) This section does not apply to the 1997-98 year of income or a later year
of income. Note: Section 4-15 of the Income Tax Assessment Act 1997 sets out
rules for working out an entity's taxable income for the 1997-98 year of
income and later years of income. 32 Subsection 50A(1)
Omit "a year of income", substitute "the 1996-97 year of income or an earlier
year of income". 33 Subsection 50A(1)
Add at the end: Note: Subdivision 165-B of the Income Tax Assessment Act 1997
sets out special rules for working out a company's taxable income and tax loss
for the 1997-98 year of income and later years of income. Those rules may
apply if there has been a change in the ownership or control of the company in
those years of income. 34 Before subsection 51(1)
Insert :

(1AA) Subsection (1) does not apply to the 1997-98 year of income or a later
year of income. Note: Section 8-1 of the Income Tax Assessment Act 1997 sets
out rules for working out what losses or outgoings an entity can deduct for
the 1997-98 year of income and later years of income. 35 Paragraph 51(2A)(c)
Omit "subsection (1)", substitute "section 8-1 of the Income Tax  Assessment
Act 1997 ". 36 Subsection 51(2A)
Omit "subsection (1)" (wherever occurring), substitute "that section". 37
Subsection 51(3)
Omit "subsection (1)", substitute "section 8-1 of the Income Tax  Assessment
Act 1997 ". 38 Subsection 51(3)
Omit "that subsection", substitute "that section". 39 Subsections 51(4), (6),
(7), (8) and (9)
Omit "subsection (1)", substitute "section 8-1 of the Income Tax  Assessment
Act 1997 ". 40 Subsection 51AE(4)
Omit "section 51", substitute "section 8-1 of the Income Tax  Assessment Act
1997 ". 41 Subparagraph 51AE(5)(g)(iv)
Omit "section 51", substitute "section 8-1 of the Income Tax  Assessment Act
1997 ". 42 Subsections 51AE(11) and (12)
Omit "section 51", substitute "section 8-1 of the Income Tax  Assessment Act
1997 ". 43 Subsection 51AF(2) (definitions of car and car expense)
Repeal the definitions, substitute:
car has the meaning given by section 995-1 of the Income Tax  Assessment Act
1997 , but does not include a car covered by section 28- 165 of that Act.
car expense has the meaning given by section 28- 13 of the Income Tax 
Assessment Act 1997 , but does not include a car expense covered by section
28-165 of that Act. 44 Subsections 51AG(1) and 52A(1)
Omit "section 51", substitute "section 8-1 of the Income Tax  Assessment Act
1997 ". 45 Subsection 57AK(7)
Repeal the subsection, substitute:

(7) Subsection 330-590(3) of the Income Tax Assessment Act 1997 applies in
relation to a unit of property to which this section applies as if a reference
in that subsection to section 56 included a reference to this section. 46
Subsection 59AAA(8)
Repeal the subsection, substitute:

(8) The car expense deduction and substantiation rules are:

   (a)  Divisions 28 and 900 of the Income Tax Assessment Act 1997; or

   (b)  Subdivision GA of this Division and Schedules 2A and 2B to this Act;
        or

   (c)  Subdivision F of this Division; as appropriate. 47 Subsection 63(3)
Omit "section 51", substitute "section 8-1 of the Income Tax  Assessment Act
1997 ". 48 Subsection 63A(10)
Omit "in a year before the year of income is to be taken into account",
substitute "is to be taken into account in the 1996-97 year of income". 49
After section 63C
Insert: 63CA When tax losses resulting from bad debts cannot be deducted

(1) If:

   (a)  a company can deduct a debt that is written off as bad in a year of
        income; and

   (b)  because of a change in the beneficial ownership of shares in the
        company or another company, the debt would not have been deductible in
        the year of income apart from subsection 63C(1); and

   (c)  the change occurred before the debt was written off as bad; and

   (d)  because the debt was deductible, the company has a tax loss, or there
        was an increase in the amount of its tax loss, for the year of income;
        and

   (e)  the Commissioner is satisfied that the company carried on a business
        during the year of income for the purpose (or for purposes including
        the purpose) of securing a deduction for the debt because of
        subsection 63C(1); the company cannot deduct the tax loss, or cannot
        deduct it to the extent of the increase in the amount of the tax loss,
        in a later year of income unless:

   (f)  the company carried on, at all times during the later year of income,
        the same business as it carried on immediately before the change; and

   (g)  the company did not, at any time during the later year of income,
        derive income from a business of a kind that it did not carry on
        before the change, or from a transaction of a kind that it had not
        entered into in the course of business operations before the change.

(2) If a part of a debt is written off as bad, subsection (1) applies as if
the part were an entire debt that is written off as bad.

(3) This section has the same effect in relation to an allowable deduction
under section 63E for the whole or part of a debt that is extinguished as it
has in relation to an allowable deduction under section 63 of this Act or
section 8-1 of the Income Tax Assessment Act  1997 for the whole or part of a
debt that is written off as bad. 50 Subparagraph 63D(1)(a)(i)
Omit "section 51 or 63", substitute "section 63 of this Act or section 8-1 of
the Income Tax Assessment Act 1997". 51 Paragraph 63E(3)(b)
Omit "section 51 or 63", substitute "section 63 of this Act or section 8-1 of
the Income Tax Assessment Act 1997". 52 Subparagraph 63F(1)(a)(i)
Omit "section 51 or 63", substitute "section 63 of this Act or section 8-1 of
the Income Tax Assessment Act 1997". 53 Subsection 64A(3)
Omit "subsection 51(1)", substitute "section 8-1 of the Income Tax  Assessment
Act 1997 ". 54 Subsection 67AA(2)
Omit "section 51", substitute "section 8-1 of the Income Tax  Assessment Act
1997 ". 55 Subsection 69(6)
Omit "(including a provision of section 51, other than subsection 51(1))". 56
Subsection 69(6)
Omit "section 51" (second occurring), substitute "section 8-1 of the
Income Tax Assessment Act 1997". 57 Subsection 70A(2)
Omit "prescribed mining operations within the meaning of Division 10 or
prescribed petroleum operations within the meaning of Division 10AA",
substitute "eligible mining operations within the meaning of the
Income Tax Assessment Act 1997". 58 Before subsection 72A(1)
Insert:

(1A) A deduction is not allowable under subsection (1) for the 1997- 98 year
of income or any later year of income. Note: Section 330-350 of the
Income Tax Assessment Act 1997 gives a taxpayer a deduction for petroleum
resource rent tax, or an instalment of petroleum resource rent tax, paid in
the 1997-98 year of income or a later year of income. 59 Before subsection
72A(2)
Insert:

(2AA) A deduction is not allowable under subsection (2) for the 1997-98 year
of income or any later year of income. Note: Section 330-350 of the
Income Tax Assessment Act 1997 gives a taxpayer as agent or trustee a
deduction for petroleum resource rent tax, or an instalment of petroleum
resource rent tax, paid in the 1997-98 year of income or a later year of
income. 60 Subsection 73B(1) (paragraph (d) of the definition of aggregate
research and development amount)
After "Division 10D", insert "of this Part, or Division 43 of the
Income Tax Assessment Act 1997,". 61 Paragraph 73B(27)(c)
After "Division 10D" (wherever occurring), insert "of this Part, or under
Division 43 of the Income Tax Assessment Act 1997,". 62 Subsection 73B(30)
Repeal the subsection, substitute:

(30) If:

   (a)  subsection (28) applies to expenditure incurred by an eligible company
        in the acquisition or construction of a building or an extension,
        alteration or improvement to a building; and

   (b)  deductions would, apart from this section, have been allowable to the
        company under section 75B or 124JA of this Act, or Division 10, 10AAA,
        10AA or 10D of this Part, or Division 43 or Subdivision 330-A, 330-C
        or 330-H of the Income Tax Assessment Act 1997, in respect of that
        expenditure; section 75B or 124JA of this Act, or Division 10, 10AAA,
        10AA or 10D of this Part, or Division 43 or Subdivision 330-A, 330-C
        or 330-H of the Income Tax Assessment Act 1997, as the case may be,
        applies to that expenditure as if this section had never applied to
        that expenditure. 63 Subparagraphs 73F(10)(d)(i) and (ii) and (e)(ii)
Omit "or Division 10, 10AAA, 10AA or 10D", substitute "of this Act, or
Division 10, 10AAA, 10AA or 10D of this Part, or Division 43 or Subdivision
330-A, 330-C or 330-H of the Income Tax Assessment Act  1997 ,". 64 Paragraph
73F(10)(e)
Omit "or Division 10, 10AAA, 10AA or 10D", substitute "of this Act, or
Division 10, 10AAA, 10AA or 10D of this Part, or Division 43 or Subdivision
330-A, 330-C or 330-H of the Income Tax Assessment Act  1997 ". 65 Subsection
73F(11)
After "Division 10D" (wherever occurring), insert "of this Part, or Division
43 of the Income Tax Assessment Act 1997,". 66 Paragraph 78(6G)(a)
Repeal the paragraph, substitute:

   (a)  an amount of the deduction to which subsection (6A) applies is not
        allowable because of section 26- 55 of the Income Tax Assessment  Act
        1997 in the assessment of the taxpayer in respect of income of the
        year of income in which the taxpayer died; and 67 Subsection 78(6G)
Omit "section 79C". 68 Section 79C
Add at the end:

(2) This section does not apply to the 1997-98 year of income or a later year
of income. Note: Section 26- 55 of the Income Tax Assessment Act 1997 sets out
a limit on the total amount deductible under the following provisions of this
Act:
- section 78 (Deductions for gifts, pensions etc);
- section 78B (Promoters recoupment tax);
- Subdivision B (Development allowance) of Division 3 of Part III;
- section 82AAT (Deductions for superannuation contributions by eligible
persons);
- Division 3 of Part XII (Drought investment allowance). 69 After section 79D
Insert: 79DA Tax losses not deductible from foreign income unless taxpayer so
elects

(1) A tax loss is not allowable as a deduction from a taxpayer's assessable
foreign income (as defined in section 160AFD) of the year of income, except so
far as the taxpayer so elects.

(2) An election must be made on or before the day of lodgment of the
taxpayer's return of income for the year of income, or within such further
period as the Commissioner allows. 70 Before subsection 79E(1)
Insert:

(1A) This section does not apply to the 1997-98 year of income or a later year
of income. Note 1: To work out the amount of a tax loss for the 1997-98 year
of income or a later year of income: see Division 36 of the Income Tax 
Assessment Act 1997 . Note 2: To find out how much of a loss incurred in a
post-1989 year of income you can deduct for the 1997-98 year of income or a
later year of income: see section 36-105 of the Income Tax (Transitional 
Provisions) Act 1997 . Note 3: For the rules about deducting tax losses from
assessable foreign income for the 1997-98 year of income or a later year of
income: see section 79DA. Note: The heading to section 79E is replaced by the
heading "General domestic losses of 1989-90 to 1996-97 years of income". 71
Subsection 79EA(1)
Omit "a year of income", substitute "the 1996-97 year of income or an earlier
year of income". 72 Subsection 79EA(1)
Add at the end: Note: To work out whether a PDF can deduct a tax loss in the
1997-98 year of income or a later year of income: see Subdivision 195-A of the
Income Tax Assessment Act 1997. 73 Before subsection 79EB(1)
Insert:

(1A) This section does not apply to the 1997-98 year of income or a later year
of income. Note: To work out whether a PDF can deduct a tax loss in the
1997-98 year of income or a later year of income: see Subdivision 195-A of the
Income Tax Assessment Act 1997. 74 Before subsection 79F(1)
Insert:

(1A) This section does not apply to the 1997-98 year of income or a later year
of income. Note 1: To work out the amount of a film loss for the 1997-98 or a
later income year: see Subdivision 375-G of the Income Tax Assessment  Act
1997 . Note 2: To find out how much of a film loss incurred in a post-1989
year of income you can deduct for the 1997-98 or a later year of income: see
section 36-105 of the Income Tax (Transitional Provisions)  Act 1997 . Note:
The heading to section 79F is replaced by the heading "Film losses of 1989-90
to 1996-97 years of income". 75 Before subsection 80AA(1)
Insert:

(1AA) This section does not apply to the 1997-98 year of income or a later
year of income. Note: To find out how much of a primary production loss
incurred before the 1989-90 year of income you can deduct for the 1997-98 or a
later year of income: see section 36- 110 of the Income Tax  (Transitional
Provisions) Act 1997 . 76 Before subsection 80F(1)
Insert:

(1A) This section does not apply to the 1997-98 year of income or a later year
of income. Note: To work out the deductibility of a tax loss that results from
a debt being written off as bad in the 1997-98 year of income or a later year
of income: see section 63CA. 77 Before subsection 80G(1)
Insert:

(1A) The right to a deduction for an amount of a loss cannot be transferred
under this section in the 1997-98 year of income or a later year of income.
Note: To work out whether a company can transfer its tax loss to another
company in the 1997-98 year of income or a later year of income: see
Subdivision 170-A of the Income Tax Assessment Act 1997. 78 Before subsection
82(1)
Insert:

(1A) Subsection (1) does not apply to the 1997-98 year of income or a later
year of income. Note 1: Section 8-10 of the Income Tax Assessment Act 1997
prevents you from getting double deductions for any of the years of income
after 1996-97. Note 2: Section 8-10 of the
Income Tax (Transitional Provisions) Act  1997 prevents you from getting
double deductions for a year of income before 1997-98 and a year of income
after 1996-97. 79 Subsection 82A(1)
Omit "section 51", substitute "section 8-1 of the Income Tax  Assessment Act
1997 ". 80 Section 82AC
Add at the end:

(2) This section does not apply to the 1997-98 year of income or a later year
of income. 81 Subsection 82AD(4)
Omit "section 82AC", substitute "section 26- 55 of the Income Tax  Assessment
Act 1997 ". 82 Subsection 82AM(1)
Omit "section 82, 122N, 123E or 124AN", substitute "section 8-10 or 330-590 of
the Income Tax Assessment Act 1997". 83 Subsection 82AM(1) After "this Act",
insert "or the Income Tax Assessment Act 1997". 84 Subsection 82AM(2)
Omit "75B, 75D, 122J, 122JF or 124AH", substitute "75B or 75D of this Act or
section 330-15 of the Income Tax Assessment Act 1997". 85 Subsection 82BB(2)
Omit "(including a provision of section 51, other than subsection 51(1))". 86
Subsection 82BB(2)
Omit "section 51" (second occurring), substitute "section 8-1 of the
Income Tax Assessment Act 1997". 87 Subsection 82BK(2)
Omit "(including a provision of section 51, other than subsection 51(1))". 88
Subsection 82BK(2)
Omit "section 51" (second occurring), substitute "section 8-1 of the
Income Tax Assessment Act 1997". 89 Subsection 82KH(1) (definition of relevant
expenditure)
Omit "section 51" (wherever occurring), substitute "section 8-1 of the
Income Tax Assessment Act 1997". 90 Subsection 82KH(1) (paragraph (f) of the
definition of relevant expenditure)
Omit "63", substitute "section 63 of this Act". 91 Subsection 82KH(1)
(paragraph (o) of the definition of relevant expenditure)
Omit "64", substitute "section 64 of this Act". 92 Subsection 82KH(1ABA)
Omit "51 or 63", substitute "63 of this Act or section 8-1 of the
Income Tax Assessment Act 1997". 93 Subsection 82KH(1BA)
Omit everything after "otherwise)", substitute: would:

   (a)  have a tax loss for a year of income that the person would not have;
        or

   (b)  have a greater tax loss for a year of income than the person would
        have; if a tax benefit were not allowable in respect of any part of
        that eligible relevant expenditure, apply Division 36 and Subdivision
        375-G of the Income Tax Assessment Act 1997 as if the amount were
        relevant expenditure but not eligible relevant expenditure. 94
        Subsection 82KS(2)
Omit "year of income and later", substitute ", 1995-96 and 1996- 97". 95
Subdivision GA of Division 3 of Part III (heading)
Repeal the heading, substitute:
Subdivision GA-Calculating car expense deductions, and
substantiating certain expenses, of the 1994-95,
1995-96 and 1996-97 income years 96 Subsection 82KZBE(1)
Omit "income year and later", substitute ", 1995-96 and 1996-97". 97
Subsection 82KZBE(1)
Add at the end: Note: For the law applying to the 1997-98 year of income and
later years of income, see Divisions 28 and 900 of the Income Tax Assessment 
Act 1997 . 98 Paragraph 82KZM(c) After "section 51", insert "of this Act or
section 8-1 of the Income  Tax Assessment Act 1997 ". 99 Section 82KZM
Omit "under section 51" (second occurring). 100 Paragraph 82KZN(c)
After "section 51", insert "of this Act or section 8-1 of the Income  Tax
Assessment Act 1997 ". 101 Paragraph 82KZO(c)
After "section 51", insert "of this Act or section 8-1 of the Income  Tax
Assessment Act 1997 ". 102 Subsections 82U(2) and (3)
Omit "section 51", substitute "section 8-1 of the Income Tax  Assessment Act
1997 ". 103 Paragraph 82ZB(b)
Omit all the words after "allowable", substitute "to the taxpayer under
Subdivision A of Division 3 of this Part or under Division 36 of the
Income Tax Assessment Act 1997". 104 Section 90 (definitions of net income and
partnership loss)
Omit "section 79E, 80, 80AA or 82AAT", substitute "section 82AAT of this Act
or Division 36 of the Income Tax Assessment Act 1997". 105 Section 94X
Omit "Sections 50H and 80A", substitute "Subdivisions 165-A and 165-B of the
Income Tax Assessment Act 1997". 106 Subsection 95(1) (definition of net
income)
Omit "section 79E, 79F, 80, 80AAA or 80AA", substitute "Division 36 of the
Income Tax Assessment Act 1997". 107 Subsection 95(1) (definition of net
income)
Before "losses", insert "tax". 108 Subsection 102AAZC(1)
Omit "section 79E, 79F, 80, 80AAA or 80AA", substitute "Division 36 of the
Income Tax Assessment Act 1997". 109 Subsection 102AAZC(1)
Before "losses", insert "tax". 110 Subsection 105A(11)
Omit "in a year before the year of income is to be taken into account",
substitute "is to be taken into account in the 1996-97 year of income". 111
Subsection 110(1) (definition of modified 25/25A amount)
Omit "25 or 25A", substitute "25A of this Act or section 6-5 of the
Income Tax Assessment Act 1997". 112 Subsection 110(1) (definition of modified
51/52 amount)
Omit "51 or 52", substitute "52 of this Act or section 8-1 of the
Income Tax Assessment Act 1997". 113 Subsection 110(1) (definition of ordinary
25/25A amount)
Omit "25 or 25A", substitute "25A of this Act or section 6-5 of the
Income Tax Assessment Act 1997". 114 Subsection 110(1) (definition of ordinary
51/52 amount)
Omit "51 or 52", substitute "52 of this Act or section 8-1 of the
Income Tax Assessment Act 1997". 115 Subsection 110(1) (definition of prior
year loss deduction)
Omit "section 79E, 79F, 80, 80AAA or 80AA", substitute "Division 36 of the
Income Tax Assessment Act 1997". 116 Paragraph 111AC(3)(a)
Omit "51 or 111AD", substitute "111AD of this Act or section 8-1 of the
Income Tax Assessment Act 1997". 117 Paragraph 111AD(4)(a)
Omit "51 or 111AC", substitute "111AC of this Act or section 8-1 of the
Income Tax Assessment Act 1997". 118 Paragraph 111B(1)(d)
Omit "section 25", substitute "section 6-5 of the Income Tax  Assessment Act
1997 ". 119 Paragraph 111B(1)(e)
After "52", insert "of this Act". 120 Paragraph 111B(1)(f)
Omit "section 51", substitute "section 8-1 of the Income Tax  Assessment Act
1997 ". 121 Paragraph 111C(1)(a)
Omit "51,". 122 Paragraph 111C(1)(a)
After "113", insert "of this Act or section 8-1 of the Income Tax  Assessment
Act 1997 ". 123 Subsection 113(4)
Omit "(including a provision of section 51, other than subsection 51(1))". 124
Subsection 113(4)
Omit "section 51", substitute "section 8-1 of the Income Tax  Assessment Act
1997 ". 125 Subsection 116CH(3)
Omit "section 80AB" (first occurring), substitute "section 36- 110 of the
Income Tax (Transitional Provisions) Act 1997". 126 Subsection 116CH(3)
Omit "section 80AB" (last occurring), substitute "section 375-820 of the
Income Tax Assessment Act 1997 and section 36- 110 of the Income  Tax
(Transitional Provisions) Act 1997 ". 127 Subsection 116E(1) (definition of
modified 25/25A amount)
Omit "25 or 25A", substitute "25A of this Act or section 6-5 of the
Income Tax Assessment Act 1997". 128 Subsection 116E(1) (definition of
modified 51/52 amount)
Omit "51 or 52", substitute "52 of this Act or section 8-1 of the
Income Tax Assessment Act 1997". 129 Subsection 116E(1) (definition of
ordinary 25/25A amount)
Omit "25 or 25A", substitute "25A of this Act or section 6-5 of the
Income Tax Assessment Act 1997". 130 Subsection 116E(1) (definition of
ordinary 51/52 amount)
Omit "51 or 52", substitute "52 of this Act or section 8-1 of the
Income Tax Assessment Act 1997". 131 Subsection 116E(1) (definition of prior
year loss deduction)
Omit "section 79E, 79F, 80, 80AAA or 80AA", substitute "Division 36 of the
Income Tax Assessment Act 1997". 132 Paragraph 116GC(1)(d)
Omit "section 25", substitute "section 6-5 of the Income Tax  Assessment Act
1997 ". 133 Paragraph 116GC(1)(e)
After "52", insert "of this Act". 134 Paragraph 116GC(1)(f)
Omit "section 51", substitute "section 8-1 of the Income Tax  Assessment Act
1997 ". 135 Paragraph 116HAB(3)(a)
Omit "51, 116H or 116HAC", substitute "116H or 116HAC of this Act or section
8-1 of the Income Tax Assessment Act 1997". 136 Paragraph 116HAC(4)(a)
Omit "51, 116H or 116HAB", substitute "116H or 116HAB of this Act or section
8-1 of the Income Tax Assessment Act 1997". 137 Subsection 116HD(2)
Omit "section 80AB" (first occurring), substitute "section 36- 110 of the
Income Tax (Transitional Provisions) Act 1997". 138 Subsection 116HD(2)
Omit "section 80AB" (last occurring), substitute "section 375-820 of the
Income Tax Assessment Act 1997 and section 36- 110 of the Income  Tax
(Transitional Provisions) Act 1997 ". 139 Subsection 121EF(7)
Omit "section 79E, 79F, 80, 80AAA or 80AA", substitute "Division 36 of the
Income Tax Assessment Act 1997". 140 After subsection 122D(1)
Insert:

(1A) A deduction is not allowable under subsection (1) for the 1997- 98 year
of income or any later year of income. Note: Section 330-1 of the
Income Tax (Transitional Provisions) Act  1997 converts any undeducted
residual previous capital expenditure at the end of the 1996-97 year of income
into allowable capital expenditure incurred by a taxpayer in the 1997-98 year
of income. 141 After subsection 122DB(1)
Insert:

(1A) A deduction is not allowable under subsection (1) for the 1997- 98 year
of income or any later year of income. Note: Section 330-1 of the
Income Tax (Transitional Provisions) Act  1997 converts any undeducted
residual capital expenditure at the end of the 1996-97 year of income into
allowable capital expenditure incurred by a taxpayer in the 1997-98 year of
income. 142 After subsection 122DD(1)
Insert:

(1A) A deduction is not allowable under subsection (1) for the 1997- 98 year
of income or any later year of income. Note: Section 330-1 of the
Income Tax (Transitional Provisions) Act  1997 converts any undeducted
residual (1 May 1981 to 18 August 1981) capital expenditure at the end of the
1996-97 year of income into allowable capital expenditure incurred by a
taxpayer in the 1997-98 year of income. 143 After subsection 122DF(1)
Insert:

(1A) A deduction is not allowable under subsection (1) for the 1997- 98 year
of income or any later year of income. Note: Section 330-1 of the
Income Tax (Transitional Provisions) Act  1997 converts any undeducted
residual (19 August 1981 to 19 July 1982) capital expenditure at the end of
the 1996-97 year of income into allowable capital expenditure incurred by a
taxpayer in the 1997-98 year of income. 144 Subsection 122DG(1)
After "after 19 July 1982", insert "and before the 1997-98 year of income".
145 Subsection 122DG(1)
Add at the end: Note: Subdivision 330-C of the Income Tax Assessment Act 1997
gives a taxpayer a deduction for allowable capital expenditure incurred in the
1997-98 year of income or a later year of income. 146 After subsection
122DG(2)
Insert:

(2A) A deduction is not allowable under subsection (2) for the 1997- 98 year
of income or any later year of income. Note: Section 330-5 of the
Income Tax (Transitional Provisions) Act  1997 converts the amount of
unrecouped expenditure at the end of the 1996-97 year of income into allowable
capital expenditure incurred by a taxpayer in the 1997-98 year of income. 147
Subsection 122DG(7)
Add at the end: Note: Subsection (2A) limits deductions allowable under
subsection (2) to years of income before the 1997-98 year of income. Section
330- 45 of the Income Tax (Transitional Provisions) Act 1997 converts the
whole or a part of a deduction disallowed in the 1996-97 year of income into
an amount a taxpayer can deduct in the 1997-98 year of income. 148 After
subsection 122J(1)
Insert:

(1A) A deduction is not allowable under subsection (1) for the 1997- 98 year
of income or any later year of income. Note: Subdivision 330-A of the
Income Tax Assessment Act 1997 gives a taxpayer a deduction for expenditure
incurred on exploration or prospecting for minerals obtainable by eligible
mining operations in the 1997-98 year of income or a later year of income. 149
Subsection 122J(3)
Add at the end: Note: Section 330-10 of the
Income Tax (Transitional Provisions) Act  1997 converts any excess amount at
the end of the 1996-97 year of income into exploration or prospecting
expenditure incurred by the taxpayer in the 1997-98 year of income. 150
Subsection 122J(4)
Add at the end: Note: Section 330-30 of the
Income Tax (Transitional Provisions) Act  1997 converts any excess amount at
the end of the 1996-97 year of income into exploration or prospecting
expenditure incurred by the taxpayer in the 1997-98 year of income. 151
Subsection 122J(4C)
Add at the end: Note: Section 330-40 of the
Income Tax (Transitional Provisions) Act  1997 converts any excess amount at
the end of the 1996-97 year of income into exploration or prospecting
expenditure incurred by the taxpayer in the 1997-98 year of income. 152
Subsection 122JAA(1)
After "property" (first occurring), insert "before the 1997-98 year of
income". 153 Subsection 122JAA(1)
Add at the end: Note: Common rule 1 in Subdivision 41-A of the
Income Tax Assessment  Act 1997 sets out when roll-over relief is available in
relation to the disposal of property in the 1997-98 year of income or a later
year of income. 154 Subsection 122JAA(2)
After "property", insert "before the 1997-98 year of income". 155 Subsection
122JAA(2)
Add at the end: Note: Common rule 1 in Subdivision 41-A of the
Income Tax Assessment  Act 1997 sets out when a joint election for roll-over
relief may be made in relation to the disposal of property in the 1997-98 year
of income or a later year of income. 156 Subsection 122JE(1)
Repeal the subsection, substitute:

(1) If, after 15 August 1989 and before the 1997-98 year of income, a taxpayer
incurs allowable capital expenditure, an amount worked out in accordance with
this section is an allowable deduction in respect of that expenditure in the
year of income the expenditure was incurred and in all later years of income.
Note: Subdivision 330-C of the Income Tax Assessment Act 1997 gives a taxpayer
a deduction for allowable capital expenditure incurred in the 1997-98 year of
income or a later year of income.

(1A) A deduction is not allowable under subsection (1) for the 1997- 98 year
of income or any later year of income. Note: Section 330-5 of the
Income Tax (Transitional Provisions) Act  1997 converts the amount of
unrecouped expenditure at the end of the 1996-97 year of income into allowable
capital expenditure incurred by a taxpayer in the 1997-98 year of income. 157
Subsection 122JE(9)
Add at the end: Note: Subsection (1A) limits deductions allowable under
subsection (1) to years of income before the 1997-98 year of income. Section
330- 45 of the Income Tax (Transitional Provisions) Act 1997 converts the
whole or a part of a deduction disallowed in the 1996-97 year of income into
an amount a taxpayer can deduct in the 1997-98 year of income. 158 Subsection
122JF(1)
Repeal the subsection, substitute:

(1) Subject to this section, expenditure incurred by the taxpayer after 15
August 1989 and before the 1997-98 year of income on exploration or
prospecting for materials obtainable by eligible quarrying operations is an
allowable deduction in the year of income the expenditure was incurred. Note:
Subdivision 330-A of the Income Tax Assessment Act 1997 gives a taxpayer a
deduction for expenditure incurred on exploration or prospecting for quarry
materials obtainable by eligible quarrying operations in the 1997-98 year of
income or a later year of income. 159 Subsection 122JF(6)
Add at the end: Note: Section 330-40 of the
Income Tax (Transitional Provisions) Act  1997 converts any excess amount at
the end of the 1996-97 year of income into exploration or prospecting
expenditure incurred by the taxpayer in the 1997-98 year of income. 160
Subsection 122JG(1)
After "property" (first occurring), insert "before the 1997-98 year of
income". 161 Subsection 122JG(1)
Add at the end: Note: Common rule 1 in Subdivision 41-A of the
Income Tax Assessment  Act 1997 sets out when roll-over relief is available in
relation to the disposal of property in the 1997-98 year of income or a later
year of income by a taxpayer to another taxpayer. 162 Subsection 122JG(2)
After "property", insert "before the 1997-98 year of income". 163 Subsection
122JG(2)
Add at the end: Note: Common rule 1 in Subdivision 41-A of the
Income Tax Assessment  Act 1997 sets out when a joint election for roll-over
relief may be made in relation to the disposal of property in the 1997-98 year
of income or a later year of income. 164 After subsection 122K(1)
Insert:

(1A) The disposal, loss or destruction of the property, or the termination of
use of the property by the taxpayer for prescribed purposes or eligible
purposes, must have occurred in the 1996-97 year of income or an earlier year
of income. Note: Subdivision 330-J of the Income Tax Assessment Act 1997 deals
with balancing adjustments for the 1997-98 year of income and later years of
income. 165 Subsection 123A(1)
After "1 July 1961", insert "and before the 1997-98 year of income". 166
Subsection 123A(1)
Add at the end: Note: Subdivision 330-H of the Income Tax Assessment Act 1997
gives a taxpayer a deduction for transport capital expenditure incurred in the
1997-98 year of income or a later year of income. 167 Subsection 123A(1A)
After "by a taxpayer", insert "before the 1997-98 year of income". 168
Subsection 123A(1A)
Add at the end: Note: Subdivision 330-H of the Income Tax Assessment Act 1997
gives a taxpayer a deduction for transport capital expenditure incurred in the
1997-98 year of income or a later year of income. 169 Paragraph 123A(1C)(a)
After "17 August 1976", insert "and before the 1997-98 year of income". 170
Subsection 123A(1C)
Add at the end: Note: Subdivision 330-H of the Income Tax Assessment Act 1997
gives a taxpayer a deduction for transport capital expenditure incurred in the
1997-98 year of income or a later year of income. 171 Subsection 123A(1E)
After "9 March 1984", insert "and before the 1997-98 year of income". 172
Subsection 123A(1E)
Add at the end: Note: Subdivision 330-H of the Income Tax Assessment Act 1997
gives a taxpayer a deduction for transport capital expenditure incurred in the
1997-98 year of income or a later year of income. 173 After subsection 123B(1)
Insert:

(1A) A deduction is not allowable under subsection (1) for the 1997- 98 year
of income or any later year of income. Note: Section 330-60 of the
Income Tax (Transitional Provisions) Act  1997 converts any capital
expenditure to which this Subdivision applies that is undeducted at the end of
the 1996-97 year of income into transport capital expenditure incurred by a
taxpayer in the 1997- 98 year of income. 174 Subsection 123BBA(1)
After "property" (first occurring), insert "before the 1997-98 year of
income". 175 Subsection 123BBA(1)
Add at the end: Note: Common rule 1 in Subdivision 41-A of the
Income Tax Assessment  Act 1997 sets out when roll-over relief is available in
relation to the disposal of property in the 1997-98 year of income or a later
year of income by a taxpayer to another taxpayer. 176 Subsection 123BBA(2)
After "property", insert "before the 1997-98 year of income". 177 Subsection
123BBA(2)
Add at the end: Note: Common rule 1 in Subdivision 41-A of the
Income Tax Assessment  Act 1997 sets out when a joint election for roll-over
relief may be made in relation to the disposal of property in the 1997-98 year
of income or a later year of income. 178 Paragraphs 123BD(1)(a) and (b)
After "15 August 1989", insert "and before the 1997-98 year of income". 179
Subsection 123BD(1)
Add at the end: Note: Subdivision 330-H of the Income Tax Assessment Act 1997
gives a taxpayer a deduction for transport capital expenditure incurred in the
1997-98 year of income or a later year of income. 180 After subsection
123BE(1)
Insert:

(1A) A deduction is not allowable under subsection (1) for the 1997- 98 year
of income or any later year of income. Note: Section 330-60 of the
Income Tax (Transitional Provisions) Act  1997 converts any capital
expenditure to which this Subdivision applies that is undeducted at the end of
the 1996-97 year of income into transport capital expenditure incurred by a
taxpayer in the 1997- 98 year of income. 181 Subsection 123BF(1)
After "property" (first occurring), insert "before the 1997-98 year of
income". 182 Subsection 123BF(1)
Add at the end: Note: Common rule 1 in Subdivision 41-A of the
Income Tax Assessment  Act 1997 sets out when roll-over relief is available in
relation to the disposal of property in the 1997-98 year of income or a later
year of income by a taxpayer to another taxpayer. 183 Subsection 123BF(2)
After "property", insert "before the 1997-98 year of income". 184 Subsection
123BF(2)
Add at the end: Note: Common rule 1 in Subdivision 41-A of the
Income Tax Assessment  Act 1997 sets out when a joint election for roll-over
relief may be made in relation to the disposal of property in the 1997-98 year
of income or a later year of income. 185 After subsection 123C(1)
Insert:

(1A) The disposal, loss or destruction of the property, or the termination of
use of the property by the taxpayer primarily and principally for a purpose
referred to in section 123A or 123BD, must have occurred in the 1996-97 year
of income or an earlier year of income. Note: Subdivision 330-J of the
Income Tax Assessment Act 1997 deals with balancing adjustments for the
1997-98 year of income and later years of income. 186 Paragraph 124AA(1)(b)
After "1 July 1976", insert "and before the 1997-98 year of income". 187
Subsection 124AA(1)
Add at the end: Note: Subdivision 330-C of the Income Tax Assessment Act 1997
gives a taxpayer a deduction for allowable capital expenditure incurred in the
1997-98 year of income or a later year of income. 188 After subsection
124AD(1)
Insert:

(1A) A deduction is not allowable under subsection (1) for the 1997- 98 year
of income or any later year of income. Note: Section 330-1 of the
Income Tax (Transitional Provisions) Act  1997 converts any undeducted
residual previous capital expenditure at the end of the 1996-97 year of income
into allowable capital expenditure incurred by a taxpayer in the 1997-98 year
of income. 189 After subsection 124ADB(1)
Insert:

(1A) A deduction is not allowable under subsection (1) for the 1997- 98 year
of income or any later year of income. Note: Section 330-1 of the
Income Tax (Transitional Provisions) Act  1997 converts any undeducted
residual capital expenditure at the end of the 1996-97 year of income into
allowable capital expenditure incurred by a taxpayer in the 1997-98 year of
income. 190 After subsection 124ADD(1)
Insert:

(1A) A deduction is not allowable under subsection (1) for the 1997- 98 year
of income or any later year of income. Note: Section 330-1 of the
Income Tax (Transitional Provisions) Act  1997 converts any undeducted
residual (1 May 1981 to 18 August 1981) capital expenditure at the end of the
1996-97 year of income into allowable capital expenditure incurred by a
taxpayer in the 1997-98 year of income. 191 After subsection 124ADF(1)
Insert:

(1A) A deduction is not allowable under subsection (1) for the 1997- 98 year
of income or any later year of income. Note: Section 330-1 of the
Income Tax (Transitional Provisions) Act  1997 converts any undeducted
residual (19 August 1981 to 19 July 1982) capital expenditure at the end of
the 1996-97 year of income into allowable capital expenditure incurred by a
taxpayer in the 1997-98 year of income. 192 Subsection 124ADG(1)
After "after 19 July 1982", insert "and before the 1997-98 year of income".
193 Subsection 124ADG(1)
Add at the end: Note: Subdivision 330-C of the Income Tax Assessment Act 1997
gives a taxpayer a deduction for allowable capital expenditure incurred in the
1997-98 year of income or a later year of income. 194 After subsection
124ADG(2)
Insert:

(2A) A deduction is not allowable under subsection (2) for the 1997- 98 year
of income or any later year of income. Note: Section 330-5 of the
Income Tax (Transitional Provisions) Act  1997 converts the amount of
unrecouped expenditure at the end of the 1996-97 year of income into allowable
capital expenditure incurred by a taxpayer in the 1997-98 year of income. 195
Subsection 124ADG(7)
Add at the end: Note: Subsection (2A) limits deductions allowable under
subsection (2) to years of income before the 1997-98 year of income. Section
330- 45 of the Income Tax (Transitional Provisions) Act 1997 converts the
whole or a part of a deduction disallowed in the 1996-97 year of income into
an amount a taxpayer can deduct in the 1997-98 year of income. 196
Subparagraph 124AE(e)(i)
Omit "section 79E, 79F, 80, 80AAA or 80AA", substitute "Division 36 of the
Income Tax Assessment Act 1997". 197 After subsection 124AH(1)
Insert:

(1A) A deduction is not allowable under subsection (1) for the 1997- 98 year
of income or any later year of income. Note: Subdivision 330-A of the
Income Tax Assessment Act 1997 gives a taxpayer a deduction for expenditure
incurred on exploration or prospecting for petroleum obtainable by eligible
mining operations in the 1997-98 year of income or a later year of income. 198
Subsection 124AH(4)
Add at the end: Note: Section 330-35 of the
Income Tax (Transitional Provisions) Act  1997 converts any excess amount at
the end of the 1996-97 year of income into exploration or prospecting
expenditure incurred by the taxpayer in the 1997-98 year of income. 199
Subsection 124AH(4B)
Add at the end: Note: Section 330-40 of the
Income Tax (Transitional Provisions) Act  1997 converts any excess amount at
the end of the 1996-97 year of income into exploration or prospecting
expenditure incurred by the taxpayer in the 1997-98 year of income. 200 After
subsection 124AM(1)
Insert:

(1A) The disposal, loss or destruction of the property, or the termination of
use of the property by the taxpayer for purposes of carrying on prescribed
petroleum operations or of exploration or prospecting for petroleum, must have
occurred in the 1996-97 year of income or an earlier year of income. Note:
Subdivision 330-J of the Income Tax Assessment Act 1997 deals with balancing
adjustments for the 1997-98 year of income and later years of income. 201
Subsection 124AMAA(1)
After "property" (first occurring), insert "before the 1997-98 year of
income". 202 Subsection 124AMAA(1)
Add at the end: Note: Common rule 1 in Subdivision 41-A of the
Income Tax Assessment  Act 1997 sets out when roll-over relief is available in
relation to the disposal of property in the 1997-98 year of income or a later
year of income by a taxpayer to another taxpayer. 203 Subsection 124AMAA(2)
After "property", insert "before the 1997-98 year of income". 204 Subsection
124AMAA(2)
Add at the end: Note: Common rule 1 in Subdivision 41-A of the
Income Tax Assessment  Act 1997 sets out when a joint election for roll-over
relief may be made in relation to the disposal of property in the 1997-98 year
of income or a later year of income. 205 Subsection 124BA(1)
After "1 July 1991", insert "and before the 1997-98 year of income". 206
Subsection 124BA(1)
Add at the end: Note: Subdivision 330-I of the Income Tax Assessment Act 1997
gives a taxpayer a deduction for expenditure incurred on rehabilitation in the
1997-98 year of income or a later year of income. 207 Before section 124ZA
Insert in Division 10C of Part III: 124ZAPA Division to cease to have effect
This Division does not have effect for the 1997-98 year of income or a later
year of income. Note: See instead Division 43 of the
Income Tax Assessment Act 1997. 208 Before section 124ZF
Insert in Division 10D of Part III: 124ZEB Division to cease to have effect
This Division does not have effect for the 1997-98 year of income or a later
year of income. Note: See instead Division 43 of the
Income Tax Assessment Act 1997. 209 Subdivision B of Division 10E of Part III
(heading)
Repeal the heading, substitute:
Subdivision B-The taxable income of PDFs 210 After section 124ZS
Insert: 124ZTA Taxable income in first year as PDF if PDF component is nil

(1) This section applies if:

   (a)  a company becomes a PDF during a year of income and is still a PDF at
        the end of the year of income; and

   (b)  the PDF component for the year of income is a nil amount; and

   (c)  the year of income is the 1997-98 year of income or a later one.

(2) The company's taxable income of the year of income is the amount that, if
the period (the notional year) beginning at the start of the year of income
and ending immediately before the company becomes a PDF were a year of income
of the company, would be the company's taxable income of the notional year.
211 Subsection 159GE(1) (definition of capital expenditure deduction)
After "10D", insert "of this Part or Division 43 or Subdivision 330-C or 330-H
of the Income Tax Assessment Act 1997". 212 Subsection 159GE(1) (paragraph (a)
of the definition of Division 10, 10AA or 10A property)
After "10AA", insert "of this Part or Subdivision 330-C of the
Income Tax Assessment Act 1997". 213 Subsection 159GE(1) (definition of
Division 10AAA property)
Omit "applies", substitute "of this Part applies or transport capital
expenditure within the meaning of Subdivision 330-H of the
Income Tax Assessment Act 1997". 214 Subsection 159GE(1) (definition of
Division 10C or 10D property)
After "10D", insert "or for which there is a pool of construction expenditure
within the meaning of Division 43 of the Income Tax  Assessment Act 1997 ".
215 Paragraph 159GF(3)(e)
Repeal the paragraph, substitute:

   (e)  so much as is unrecouped of an amount of allowable (post-19 July 1982)
        capital expenditure within the meaning of Division 10 or 10AA;

   (f)  so much as is unrecouped of an amount of allowable capital expenditure
        within the meaning of Subdivision 330-C of the Income Tax  Assessment
        Act 1997 ; 216 Subsection 159GF(4)
After "under Division 10AAA", insert "of this Part or Subdivision 330-H of the
Income Tax Assessment Act 1997". 217 Subsection 159GF(5)
Omit ", as the case may be", substitute "of this Part, or to the undeducted
construction expenditure within the meaning of Division 43 of the
Income Tax Assessment Act 1997, as appropriate". 218 Paragraph 159GJ(2)(a)
After "10A" (first occurring), insert "of this Part or Subdivision 330-C of
the Income Tax Assessment Act 1997". 219 Paragraph 159GJ(2)(c)
After "10A" (first occurring), insert "of this Part or Subdivision 330-C of
the Income Tax Assessment Act 1997". 220 Paragraph 159GJ(2)(c)
After "Divisions", insert "and Subdivision". 221 Paragraph 159GJ(3)(a)
After "10AAA" (first occurring), insert "of this Part or Subdivision 330-H of
the Income Tax Assessment Act 1997". 222 Paragraph 159GJ(3)(c)
After "10AAA" (first and third occurring), insert "of this Part or Subdivision
330-H of the Income Tax Assessment Act 1997". 223 Paragraph 159GJ(3)(c)
After "that Division", insert "or Subdivision". 224 Paragraph 159GJ(4)(a)
After "under Division 10C or 10D", insert "of this Part, or under Division 43
of the Income Tax Assessment Act 1997,". 225 Subparagraph 159GJ(4)(b)(i)
Omit "as the case requires,", substitute "of this Part, or under Division 43
of the Income Tax Assessment Act 1997, as appropriate". 226 Subparagraph
159GJ(4)(b)(ii)
Omit "under Division 10C or 10D", substitute "under Division 10C or 10D of
this Part, or under Division 43 of the Income Tax Assessment  Act 1997 ,". 227
Sub-subparagraph 159GJ(4)(b)(iii)(B)
Omit ",as the case requires", substitute "of this Part, or the undeducted
construction expenditure within the meaning of Division 43 of the
Income Tax Assessment Act 1997, as appropriate". 228 Sub-subparagraph
159GJ(4)(b)(iii)(C)
Omit ",as the case requires", substitute "of this Part, or under Division 43
of the Income Tax Assessment Act 1997, as appropriate". 229 Paragraph
159GJ(4)(d)
Omit "of Division 10C or 10D" (wherever occurring), substitute "of Division
10C or 10D of this Part, or of Division 43 of the Income Tax  Assessment Act
1997 ,". 230 Paragraph 159GL(2)(a)
After "under Division 10C or 10D", insert "of this Part, or under Division 43
of the Income Tax Assessment Act 1997,". 231 Subsection 159GT(2)
Omit "section 51", substitute "section 8-1 of the Income Tax  Assessment Act
1997 ". 232 Subsection 159GZZT(1)
Repeal the subsection, substitute:

(1) A company cannot transfer under Subdivision 170-A of the Income  Tax
Assessment Act 1997 so much of a tax loss as is attributable to an amount of
deemed gold exploration or prospecting expenditure unless that company, and
the income company referred to in that Subdivision, were members of the same
wholly-owned group (within the meaning of that Act) during the whole or part
of each of the following years of income when the companies were in existence
(within the meaning of that Act):

   (a)  the year of income in which the eligible gold exploration or
        prospecting expenditure that gave rise to that deemed gold exploration
        or prospecting expenditure was incurred;

   (b)  each later year of income before the loss year referred to in that
        Subdivision. 233 Subsection 160AF(8) (paragraph (b) of the definition
        of net foreign income)
Omit "subsection 79E(6), 80AA(5B) or 80(2C)", substitute "section 79DA". 234
Subsection 160D(3)
Omit "section 19", substitute "subsections 6-5(4) and 6-10(3) of the
Income Tax Assessment Act 1997". 235 Subsection 160L(7)
Omit "paragraph 23(pa)", substitute "section 330-60 of the Income  Tax
Assessment Act 1997 ". 236 Subparagraphs 160Z(9)(b)(i) and (ii)
Repeal the subparagraphs, substitute:

        (i)    the company must calculate its taxable income and tax loss for
               the year of income under Subdivision 165-B of the Income Tax 
               Assessment Act 1997 ; or

        (ii)   Subdivision 175-B of that Act applies to the company in
               relation to the year of income; 237 Subsection 160Z(9A)
Omit the subsection. 238 Subsection 160ZC(5)
Omit everything after "incurred a net capital loss,", substitute "in the next
year of income if, had the net capital loss been a tax loss, Subdivision 165-A
or 175-A of the Income Tax Assessment Act 1997 would have prevented the
taxpayer from deducting it in that next income year.". 239 Subsection
160ZK(1A)
Repeal the subsection, substitute:

(1A) The reference in paragraph (1)(a) to any part of the consideration, of
the costs or of the expenditure that has been allowed or is allowable as a
deduction to the taxpayer in respect of any year of income includes:

   (a)  an amount that, apart from subsections 124ZB(4) and 124ZG(5), would
        have been so allowed or allowable under Division 10C or 10D of Part
        III this Act; and

   (b)  an amount that, apart from paragraph 43-70(2)(h) of the Income  Tax
        Assessment Act 1997 , would have been so allowed or allowable under
        Division 43 of that Act. 240 Subsection 160ZM(3A)
After "Part III", insert "or under Division 43 of the Income Tax  Assessment
Act 1997 ". 241 Paragraphs 160ZP(9)(a) and (b)
Repeal the paragraphs, substitute:

   (a)  the loss company must calculate its taxable income and tax loss for
        the year of income under Subdivision 165-B of the Income Tax 
        Assessment Act 1997 ; or

   (b)  Subdivision 175-B of that Act applies to the company in relation to
        the year of income; 242 Subsection 160ZP(9A)
Omit the subsection. 243 Paragraph 160ZZE(a)
Repeal the paragraph, substitute:

   (a)  a taxpayer who:

        (i)    is carrying on or has carried on eligible mining operations
               within the meaning of Subdivision 330-B of the
               Income Tax Assessment  Act 1997 , or has incurred transport
               capital expenditure within the meaning of Subdivision 330-H of
               that Act; or

        (ii)   has carried on prescribed mining operations within the meaning
               of Division 10 of Part III of this Act or prescribed petroleum
               operations within the meaning of Division 10AA of that Part, or
               has incurred expenditure to which Division 10AAA of that Part
               applied; disposes of an asset in respect of which, or in
               respect of the acquisition of which, the taxpayer has incurred
               expenditure of a capital nature to which Subdivision 330-A,
               330-C or 330-H of the Income Tax Assessment Act 1997 applies or
               Division 10, 10AAA or 10AA of Part III of this Act applied; and
               244 Subsection 160ZZZB(1)
Omit "subsection 51(1)", substitute "section 8-1 of the Income Tax  Assessment
Act 1997 ". 245 Subsection 160ZZZB(1)
Omit "that subsection", substitute "that section". 246 Section 160ZZZG
Omit "section 80G", substitute "Subdivision 170-A of the Income Tax 
Assessment Act 1997 ". 247 After subsection 170(10)
Insert:

(10AA) Nothing in this section prevents the amendment, at any time, of an
assessment for the purpose of giving effect to any of these provisions of the
Income Tax Assessment Act 1997:

   (a)  Division 28;

   (m)  sections 330-175 and 330-245;

   (z)  Division 900. 248 Subsection 170(13)
Repeal the subsection, substitute:

(13) The Commissioner may amend an assessment within 6 years after the day
when the tax became due and payable under it, if the amendment is to give
effect to any of these provisions:

   (a)  sections 165-180 to 165-205 and Division 175 of the Income Tax 
        Assessment Act 1997 ;

   (b)  sections 63B and 105AAA of this Act; (including any of those
        provisions as applied by any other provision of that Act or this Act).
        249 Subsection 221AZU(8)
Omit "loss" (wherever occurring), substitute "tax loss". 250 Subsection
221AZU(8)
Omit "section 80G", substitute "Subdivision 170-A (which is about transferring
tax losses within wholly-owned company groups) of the
Income Tax Assessment Act 1997". 251 Subsection 221B(4A)
After "2B", insert "to this Act, and Divisions 28 and 900 of the
Income Tax Assessment Act 1997,". 252 After subsection 221B(4B)
Insert:

(4C) The resolution, insofar as it applies to Subdivision GA of Division 3 of
Part III and Schedules 2A and 2B in relation to expenses incurred after a
particular day, also applies to Divisions 28 and 900 of the
Income Tax Assessment Act 1997 in relation to expenses incurred after that
day.

(4D) The resolution, insofar as it applies to Divisions 28 and 900 of the
Income Tax Assessment Act 1997, applies in relation to expenses incurred after
the day on which the resolution takes effect. 253 Subsection 262A(4AA)
Omit "59AA, 122R, 123F, 124AO or 124W", substitute "59AA or 124W of this Act
or subsection 330-520(4) of the Income Tax Assessment Act  1997 ". 254
Subsection 262A(4AC)
Repeal the subsection, substitute:

(4AC) If:

   (a)  subsection 58(1), 73AA(1), 73E(1), 73F(1), 73G(1), 122JAA(1),
        122JG(1), 123BBA(1), 123BF(1), 124AMAA(1), 124GA(1), 124JD(1) or
        124PA(1) of this Act applies to the disposal of property by the
        transferor referred to in that subsection to the transferee referred
        to in that subsection; or

   (b)  subsection 41-20(1) of the Income Tax Assessment Act 1997 applies to
        the disposal of property by the transferor referred to in section
        41-15 of that Act to the transferee referred to in that section; then:

   (c)  the transferor must give to the transferee, within the period
        specified in subsection (4AD), a notice containing such information
        about the transferor's holding of the property as will enable the
        transferee to work out how:

        (i)    section 58, 73AA, 73E, 73F, 73G, 122JAA, 122JG, 123BBA, 123BF,
               124AMAA, 124GA, 124JD or 124PA of this Act; or

        (ii)   Common rule 1 in Subdivision 41-A of the Income Tax  Assessment
               Act 1997 ; as appropriate, will apply to the transferee's
               holding of the property; and

   (d)  the transferee must retain the notice, or a copy, until the end of 5
        years after the disposal by the person of the property or the loss or
        destruction of the property (whichever is earlier). 255 After
        subsection 262A(4AJ)
Insert:

(4AJA) If:

   (a)  a person (the transferor) disposes of capital works within the meaning
        of Division 43 of the Income Tax Assessment Act 1997, being capital
        works begun after 26 February 1992, to another person (the
        transferee); and

   (b)  a deduction has been allowed or is allowable under Division 10C or 10D
        of Part III of this Act, or under Division 43 of the Income Tax 
        Assessment Act 1997 , in respect of those capital works; then:

   (c)  the transferor must give the transferee, within 6 months after the end
        of the year of income in which the disposal occurred or within a
        further period allowed by the Commissioner, a notice containing such
        information as will allow the transferee to work out how Division 43
        of the Income Tax Assessment Act 1997 will apply to the transferee in
        respect of the capital works; and

   (d)  the transferee must retain the notice or a copy of it until the end of
        5 years after the transferee disposes of the capital works or the
        capital works are destroyed, whichever is the earlier. 256 Section 266
After "this Act" (wherever occurring), insert "or the Income Tax  Assessment
Act 1997 ". 257 Paragraph 304(a)
Omit "section 25", substitute "section 6-5 of the Income Tax  Assessment Act
1997 ". 258 Paragraph 304(b)
After "52", insert "of this Act". 259 Paragraph 304(c)
Omit "section 51", substitute "section 8-1 of the Income Tax  Assessment Act
1997 ". 260 Section 317 (definition of depreciation provision)
Omit ", or any provision of Divisions 10, 10AAA, 10AA, 10A, 10C and 10D of
that Part", substitute "of this Act, any provision of Divisions 10, 10AAA,
10AA, 10A, 10C and 10D of that Part, or any provision of Division 43 and
Subdivisions 330-A, 330-C and 330-H of the Income Tax  Assessment Act 1997 ".
261 Paragraph 399A(2)(a)
Omit "51 or 63", substitute "63 of this Act or section 8-1 of the
Income Tax Assessment Act 1997". 262 Subsection 399A(5)
Omit "51 or 63", substitute "63 of this Act or section 8-1 of the
Income Tax Assessment Act 1997". 263 Section 427
Repeal the section, substitute: 427 Certain provisions to be disregarded
For the purposes of applying this Act and the Income Tax Assessment  Act 1997
in calculating the attributable income of an eligible CFC, disregard the
following:

   (a)  paragraph 23(q) of this Act;

   (b)  sections 63CA, 79D and 79DA of this Act and Division 36 and
        Subdivisions 165-A, 170-A and 175-A of the Income Tax Assessment Act 
        1997 (except for the purpose of a reference to any of those provisions
        in any other provision of this Act, as applied in accordance with this
        Division);

   (c)  section 160AFD of this Act. 264 Subsection 632(1)
Omit "sections 82, 122N, 123E and 124AN", substitute "sections 8-10 and
330-590 of the Income Tax Assessment Act 1997". 265 Subsection 632(1)
After "this Act", insert "or the Income Tax Assessment Act 1997". 266
Subsection 632(2)
Omit "70A, 73B, 122J, 122JF or 124AH", substitute "70A or 73B of this Act or
section 330-15 of the Income Tax Assessment Act 1997". 267 Section 638
Omit "sections 639 and 640", substitute "section 639 of this Act and section
26- 55 of the Income Tax Assessment Act 1997". 268 Before subsection 640(1)
Insert:

(1A) This section does not apply to the 1997-98 year of income or a later year
of income.
269   Paragraph 641(a)

Omit "or 640", substitute "of this Act or section 26- 55 of the
Income Tax Assessment Act 1997". 270 Subsection 642(1)
Omit "sections 82, 122N, 123E and 124AN", substitute "sections 8-10 and
330-590 of the Income Tax Assessment Act 1997". 271 Subsection 642(1)
After "this Act", insert "or the Income Tax Assessment Act 1997". 272
Subsection 642(2)
After "70A, 73B, 122J, 122JF or 124AH", insert "of this Act or section 330-15
of the Income Tax Assessment Act 1997". 273 Paragraphs 647(3)(a), (b) and (c)
Repeal the paragraphs, substitute:

   (a)  section 26-55 (which reduces the deduction) of the Income Tax 
        Assessment Act 1997 ;

   (b)  Subdivision B (which takes away the deduction) of this Division;

   (c)  sections 663 to 666 (which take away the deduction) of this Act. 274
        Application of amendments
The amendments made by this Schedule apply to assessments for the 1997-98 year
of income and later years of income.