Commonwealth Numbered Acts

Income Tax Assessment Amendment Act 1983 No. 14 of 1983 - SECT 15

15. (1) After section 57AK of the Principal Act the following section is
inserted: Special depreciation on property acquired or constructed after 19
July 1982



''57AL. (1) Subject to sub-sections (2) and (7), this section applies to a
unit of property in relation to a taxpayer in relation to a year of income if-

   (a)  depreciation is allowable to the taxpayer under section 54 in respect
        of the unit of property in relation to the year of income; and

   (b)  the unit of property-

        (i)    was acquired by the taxpayer under a contract entered into
               after 19 July 1982; or

        (ii)   was constructed by the taxpayer and commenced to be constructed
               after 19 July 1982.

''(2) This section does not apply in relation to a unit of property that is-

   (a)  a motor vehicle (including a vehicle known as a four-wheel drive
        vehicle) that is-

        (i)    a motor car, station wagon, panel van, utility truck or similar
               vehicle;

        (ii)   a motor cycle or similar vehicle; or

        (iii)  any other road vehicle designed to carry a load of less than 1
               tonne or fewer than 9 passengers;

   (b)  an article being, or being a reproduction of, a painting, sculpture,
        drawing, engraving or photograph, or an article of a description, or
        having a use, similar to that of any of those articles;

   (c)  a structural improvement;

   (d)  a unit of property in respect of which section 57AH or 57AJ applies;
        or

   (e)  a unit of property in respect of which, but for this section, the
        annual depreciation fixed under section 55, as increased by any amount
        that would, but for this section, be applicable under section 57AG,
        would be, or exceed, 331/3%.

''(3) Notwithstanding anything contained in sections 55, 56, 56A and 57, but
subject to sub-sections 56 (2) and (3), the depreciation allowable under this
Act in respect of a unit of property to which this section applies shall be
ascertained in accordance with this section.

''(4) The depreciation allowable to a taxpayer under this Act in relation to a
year of income in respect of a unit of property to which this section applies
in relation to the year of income is-

   (a)  where, but for this section, the annual depreciation fixed under
        sub-section 55 (1), as increased by any amount that would, but for
        this section, be applicable under section 57AG, would be 20% or
        less-20% of the cost of the unit; and

   (b)  in any other case-331/3% of the cost of the unit.

''(5) Sub-sections 56 (1A), (1B), (1C) and (4) apply for the purposes of this
section in like manner as those sub-sections apply for the purposes of
section 56.

''(6) Sub-sections 122N (2), 123E (2) and 124AN (2) apply in relation to a
unit of property to which this section applies as if a reference in those
sub-sections to section 56 included a reference to this section.

''(7) A taxpayer may elect, for the purpose of the calculation of depreciation
allowable as a deduction to him under this Act, that this section shall not
apply in relation to a unit of property to which this section would otherwise
apply and, where an election is so made, this section does not apply in
relation to that unit of property in relation to the taxpayer in relation to
any year of income.

''(8) An election referred to in sub-section (7) in respect of a unit of
property-

   (a)  shall be exercised by notice in writing to the Commissioner; and

   (b)  shall be lodged with the Commissioner on or before the date of
        lodgment of the return of income of the taxpayer for the first year of
        income in which depreciation calculated in accordance with this
        section would, but for sub-section (7), be allowable to the taxpayer
        in respect of the unit of property, or before such later date as the
        Commissioner allows.

''(9) Where the Commissioner is satisfied that-

   (a)  on or before 19 July 1982 a taxpayer-

        (i)    owned a unit of property;

        (ii)   entered into a contract or arrangement for the acquisition of a
               unit of property; or

        (iii)  commenced the construction of a unit of property,

(which unit of property is, in each case, referred to in this sub-section as
the 'original unit');

   (b)  after 19 July 1982 and at a time when-

        (i)    in a case to which sub-paragraph (a) (i) applies-the taxpayer
               was the owner of the original unit;

        (ii)   in a case to which sub-paragraph (a) (ii) applies-the taxpayer
               was a party to the contract or arrangement or was, by reason of
               the original unit having been acquired in pursuance of that
               contract or arrangement, the owner of the original unit; or

        (iii)  in a case to which sub-paragraph (a) (iii) applies-the taxpayer
               had yet to complete the construction of the original unit or
               was, by reason of the original unit having been constructed by
               the taxpayer, the owner of the original unit,

the taxpayer entered into a scheme in pursuance of which-

        (iv)   the taxpayer became the owner of the original unit (otherwise
               than in pursuance of the contract or arrangement referred to in
               sub-paragraph (a) (ii) or, in a case to which sub-paragraph (a)
               (iii) applies, by reason of the unit having been constructed by
               the taxpayer); or

        (v)    the taxpayer became the lessee or end-user of the original
               unit;

   (c)  depreciation ascertained in accordance with this section in relation
        to the original unit would, but for this sub-section, be allowable to-

        (i)    in a case to which sub-paragraph (b) (iv) applies-the taxpayer;
               or

        (ii)   in a case to which sub-paragraph (b) (v) applies-a person who
               was the owner of the original unit at any time when the
               taxpayer was the lessee or end-user, as the case may be, of the
               original unit; and

   (d)  in a case to which sub-paragraph (b) (iv) applies-the taxpayer entered
        into the scheme for the purpose, or for purposes that included the
        purpose, of obtaining a deduction for depreciation ascertained in
        accordance with this section, the Commissioner may apply this Division
        for the purposes of ascertaining the depreciation allowable in
        relation to the original unit in relation to the taxpayer or a person
        referred to in sub-paragraph (c) (ii), as the case may be, as if-

   (e)  in a case to which sub-paragraph (b) (iv) applies-the taxpayer became
        the owner of the original unit in pursuance of a contract entered into
        on the date on which-

        (i)    in a case to which sub-paragraph (a) (i) applies-the taxpayer
               entered into the contract or arrangement for the acquisition of
               the original unit or commenced the construction of the original
               unit, as the case may be, in pursuance of which the taxpayer
               became the owner of the original unit for the purposes of
               sub-paragraph (a) (i);

        (ii)   in a case to which sub-paragraph (a) (ii) applies-the taxpayer
               entered into the contract or arrangement referred to in
               sub-paragraph (a) (ii); or

        (iii)  in a case to which sub-paragraph (a) (iii) applies-the taxpayer
               commenced the construction referred to in sub-paragraph (a)
               (iii); or

   (f)  in a case to which sub-paragraph (b) (v) applies-the person referred
        to in sub-paragraph (c) (ii) became the owner of the original unit in
        pursuance of a contract entered into on the date on which-

        (i)    in a case to which sub-paragraph (a) (i) applies-the taxpayer
               entered into the contract or arrangement for the acquisition of
               the original unit or commenced the construction of the original
               unit, as the case may be, in pursuance of which the taxpayer
               became the owner of the original unit for the purposes of
               sub-paragraph (a) (i);

        (ii)   in a case to which sub-paragraph (a) (ii) applies-the taxpayer
               entered into the contract or arrangement referred to in
               sub-paragraph (a) (ii); or

        (iii)  in a case to which sub-paragraph (a) (iii) applies-the taxpayer
               commenced the construction referred to in sub-paragraph (a)
               (iii).

''(10) Where the Commissioner is satisfied that-

   (a)  on or before 19 July 1982 a taxpayer-

        (i)    owned a unit of property;

        (ii)   entered into a contract or arrangement for the acquisition of a
               unit of property; or

        (iii)  commenced the construction of a unit of property,

(which unit of property is, in each case, referred to in this sub-section as
the 'original unit');

   (b)  after 19 July 1982 and at a time when-

        (i)    in a case to which sub-paragraph (a) (i) applies-the taxpayer
               was the owner of the original unit;

        (ii)   in a case to which sub-paragraph (a) (ii) applies-the taxpayer
               was a party to the contract or arrangement or was, by reason of
               the original unit having been acquired in pursuance of that
               contract or arrangement, the owner of the original unit; or

        (iii)  in a case to which sub-paragraph (a) (iii) applies-the taxpayer
               had yet to complete the construction of the original unit or
               was, by reason of the original unit having been constructed by
               the taxpayer, the owner of the original unit,

the taxpayer entered into a scheme in pursuance of which-

        (iv)   the taxpayer became the owner; or

        (v)    the taxpayer became the lessee or end-user,

of a unit of property (in this sub-section referred to as the 'substituted
unit') identical with, or having a purpose similar to that of, the original
unit and intended by the taxpayer to be in lieu of the original unit;

   (c)  depreciation ascertained in accordance with this section in relation
        to the substituted unit would, but for this sub-section, be allowable
        to-

        (i)    in a case to which sub-paragraph (b) (iv) applies-the taxpayer;
               or

        (ii)   in a case to which sub-paragraph (b) (v) applies-a person who
               was the owner of the substituted unit at any time when the
               taxpayer was the lessee or end-user, as the case may be, of the
               substituted unit; and

   (d)  any of the following conditions is satisfied, namely:

        (i)    in a case to which sub-paragraphs (b) (ii) and (iv) or (b)
               (iii) and (iv) apply, where the taxpayer was not the owner of
               the original unit at the time when he entered into the
               scheme-the taxpayer entered into the scheme for the purpose, or
               for purposes that included the purpose, of obtaining a
               deduction for depreciation ascertained in accordance with this
               section;

        (ii)   in a case to which sub-paragraphs (b) (ii) and (v) or (b) (iii)
               and (v) apply, where the taxpayer was not the owner of the
               original unit at the time when he entered into the scheme-the
               taxpayer entered into the scheme for the purpose, or for
               purposes that included the purpose, of benefiting, directly or
               indirectly, from the application of this section in relation to
               the substituted unit in relation to a person referred to in
               sub-paragraph (c) (ii); or

        (iii)  in a case to which-

                (A)  sub-paragraphs (b) (ii) and (iv), (b) (ii) and (v), (b)
                     (iii) and (iv) or (b) (iii) and (v) apply, where the
                     taxpayer was the owner of the original unit at the time
                     when he entered into the scheme; or

                (B)  sub-paragraphs (b) (i) and (iv) or (b) (i) and (v) apply,

it could be reasonably expected that the taxpayer would not have entered into
the scheme but for the operation of sub-section (9), the Commissioner may
apply this Division for the purposes of ascertaining the depreciation
allowable in relation to the substituted unit in relation to the taxpayer or a
person referred to in sub-paragraph (c) (ii), as the case may be, as if-

   (e)  in a case to which sub-paragraph (b) (iv) applies-the taxpayer became
        the owner of the substituted unit in pursuance of a contract entered
        into on the date on which-

        (i)    in a case to which sub-paragraph (a) (i) applies-the taxpayer
               entered into the contract or arrangement for the acquisition of
               the original unit or commenced the construction of the original
               unit, as the case may be, in pursuance of which the taxpayer
               became the owner of the original unit for the purposes of
               sub-paragraph (a) (i);

        (ii)   in a case to which sub-paragraph (a) (ii) applies-the taxpayer
               entered into the contract or arrangement referred to in
               sub-paragraph (a) (ii); or

        (iii)  in a case to which sub-paragraph (a) (iii) applies-the taxpayer
               commenced the construction referred to in sub-paragraph (a)
               (iii); or

   (f)  in a case to which sub-paragraph (b) (v) applies-the person referred
        to in sub-paragraph (c) (ii) became the owner of the substituted unit
        in pursuance of a contract entered into on the date on which-

        (i)    in a case to which sub-paragraph (a) (i) applies-the taxpayer
               entered into the contract or arrangement for the acquisition of
               the original unit or commenced the construction of the original
               unit, as the case may be, in pursuance of which the taxpayer
               became the owner of the original unit for the purposes of
               sub-paragraph (a) (i);

        (ii)   in a case to which sub-paragraph (a) (ii) applies-the taxpayer
               entered into the contract or arrangement referred to in
               sub-paragraph (a) (ii); or

        (iii)  in a case to which sub-paragraph (a) (iii) applies-the taxpayer
               commenced the construction referred to in sub-paragraph (a)
               (iii).

''(11) For the purposes of sub-sections (9) and (10), a taxpayer shall be
taken to be the end-user of a unit of property if, under a scheme to which the
taxpayer is a party-

   (a)  at a time when the unit of property is owned by a person other than
        the taxpayer, the unit is, or is to be, used (whether or not by that
        person), wholly or principally, in connection with-

        (i)    the production of goods for the taxpayer;

        (ii)   the supply of goods to the taxpayer; or

        (iii)  the provision of services to the taxpayer; and

   (b)  the taxpayer controls, or is able to control, directly or indirectly,
        the use of the property in or in connection with the production of the
        goods, the supply of the goods or the provision of the services, as
        the case may be.

''(12) In this section-

'goods' includes whatever is capable of being owned or used;

'lease', in relation to a unit of property, includes-

   (a)  any scheme under which a right to use the unit of property is granted
        by the owner to another person; and

   (b)  any scheme under which a right to use the unit of property, being a
        right derived directly or indirectly from a right referred to in
        paragraph (a), is granted by a person to another person,

but does not include a hire-purchase agreement;

'person' includes a partnership and a person in the capacity of the trustee of
a trust estate;

'scheme' includes-

   (a)  any agreement, arrangement, understanding, promise or undertaking,
        whether express or implied and whether or not enforceable, or intended
        to be enforceable, by legal proceedings; and

   (b)  any scheme, plan, proposal, action, course of action or course of
        conduct, whether unilateral or otherwise.

''(13) A reference in sub-section (9), (10), (11) or (12) to a unit of
property shall be read as including a reference to a portion of a unit of
property.

''(14) A reference in this section to the acquisition by a taxpayer of
property shall be read as including a reference to the construction of the
property for the taxpayer by another person or persons.''.

(2) In the application of section 57AL of the Income Tax Assessment Act 1936
to a unit of property to which, but for the operation of paragraph 57AK (1)
(b) of that Act, section 57AK of that Act would apply-

   (a)  the references in paragraphs 57AL (9) (a) and (10) (a) of that Act to
        19 July 1982 shall be read as references to 18 August 1981; and

   (b)  the references in paragraphs 57AL (9) (b) and (10) (b) of that Act to
        19 July 1982 shall be read as references to 18 May 1983.