Commonwealth Numbered Acts

INCOME TAX ASSESSMENT AMENDMENT ACT (NO. 2) 1980 No. 57 of 1980 - SECT 20

20. After Division 10B of Part III of the Principal Act the following Division
is inserted:



"Division 10C-Deductions for Capital Expenditure on Traveller Accommodation
Interpretation

"124ZA. (1) In this Division, unless the contrary intention appears-

'construct' includes make;

'eligible apartment building' means a building in respect of which there is an
amount, or there are amounts, of qualifying apartment expenditure;

'eligible building' means a building that is an eligible apartment building or
an eligible hotel building;

'eligible hotel building' means a building in respect of which there is an
amount, or there are amounts, of qualifying hotel expenditure;

'exempt body' means-

   (a)  a body, association or fund to which paragraph (d), (e), (ea), (eb),
        (ec), (f), (g), (h), (i), (j), (jaa) or (ja) of section 23 applies; or

   (b)  a fund to which section 23F applies; 'qualifying expenditure' means
        qualifying hotel expenditure or qualifying apartment expenditure.



"(2) For the purposes of the application of this Division in determining the
amount of a deduction allowable under section 124ZC or 124ZE, or the amount of
the residual capital expenditure, in respect of an amount of qualifying hotel
expenditure in respect of a building, a reference in this Division, in
relation to that amount of qualifying expenditure, to the hotel part shall be
read as a reference to the part of the building to which that amount of
qualifying hotel expenditure is attributable.



"(3) For the purposes of the application of this Division in determining the
amount of a deduction allowable under section 124ZC or 124ZE, or the amount of
the residual capital expenditure, in respect of an amount of qualifying
apartment expenditure in respect of a building, a reference in this Division,
in relation to that amount of qualifying expenditure, to the apartment part
shall be read as a reference to the part of the building to which that amount
of qualifying apartment expenditure is attributable.



"(4) For the purposes of the application of this Division in determining the
amount of any deduction allowable under section 124ZC or 124ZE, or the amount
of the residual capital expenditure, in respect of an amount of qualifying
hotel expenditure, a person who owned the hotel part or a part of the hotel
part at a particular time (in this sub-section referred to as the 'relevant
time') shall be taken to have dealt with the hotel part or that part of the
hotel part, as the case may be, in the prescribed manner at the relevant time
if, at the relevant time-

   (a)  the person used the hotel part or that part of the hotel part, as the
        case may be, for the purpose of producing assessable income; and

   (b)  the whole or a part of the hotel part or of that part of the hotel
        part, as the case may be, was used (whether by that person or by
        another person or persons) wholly or principally for the purpose of
        operating a hotel, motel or guest house and not fewer than 10 bedrooms
        contained in that hotel, motel or guest house were used, or available
        for use, wholly for the provision of short-term accommodation for
        travellers.



"(5) For the purposes of the application of this Division in determining the
amount of a deduction allowable under section 124ZC or 124ZE, or the amount of
the residual capital expenditure, in respect of an amount of qualifying
apartment expenditure incurred in respect of an eligible apartment building, a
person who owned the apartment part or a part (in this sub-section referred to
as the 'relevant part') of the apartment part at a particular time (in this
sub- section referred to as the 'relevant time') shall be taken to have dealt
with the apartment part or the relevant part, as the case may be, in the
prescribed manner at the relevant time if, at the relevant time, the person
used the apartment part or the relevant part, as the case may be, for the
purpose of producing assessable income and, at the relevant time-

   (a)  the apartment part or the relevant part, as the case may be, was or
        was part of, or contained, an apartment, unit or flat that was used or
        made available for use (whether by that person or by another person or
        persons) wholly for the provision of short-term accommodation for
        travellers and the person owned or leased not fewer than 9 other
        apartments, units or flats contained in the eligible apartment
        building that were used or made available for use (whether by that
        person or by another person or persons) wholly for the provision of
        short-term accommodation for travellers; or

   (b)  the apartment part or the relevant part, as the case may be, was or
        was part of, or contained, a facility that was used or made available
        for use (whether by that person or by another person or persons)
        wholly or principally in association with the provision of short-term
        accommodation in eligible apartments, units or flats contained in the
        eligible apartment building.



"(6) For the purposes of paragraph (b) of sub-section (5), an apartment, unit
or flat contained in an eligible apartment building shall be taken to be an
eligible apartment, unit or flat at a particular time if the whole or a part
of an amount of qualifying apartment expenditure is attributable to the whole
or a part (which whole or part, as the case may be, is in this sub-section
referred to as the 'relevant part') of the apartment, unit or flat, as the
case may be, and-

   (a)  where the relevant part is the apartment part in relation to that
        amount of qualifying apartment expenditure-the owner of the apartment
        part at that time is taken to have dealt with the apartment part in
        the prescribed manner at that time or would, but for the operation of
        sub- section (5) of section 124ZC, be taken to have dealt with the
        apartment part in the prescribed manner at that time; and

   (b)  where the relevant part is a part of the apartment part in relation to
        that amount of qualifying apartment expenditure-the owner of that part
        of the apartment part at that time is taken to have dealt with that
        part of the apartment part in the prescribed manner at that time or
        would, but for the operation of sub-section (5) of section 124ZC, be
        taken to have dealt with that part of the apartment part in the
        prescribed manner at that time.



"(7) For the purposes of this Division, an eligible building or part of an
eligible building shall not be taken not to have been dealt with by a taxpayer
in the prescribed manner, or not to have been used, at a particular time by
reason only of a temporary cessation of use of any part of the building by
reason of-

   (a)  the construction of an extension, alteration or improvement to that
        building or the making of repairs to that building; or

   (b)  seasonal or climatic factors.



"(8) For the purposes of this Division, a person shall be taken to be an
eligible lessee in relation to an amount of qualifying hotel expenditure or
qualifying apartment expenditure in respect of an eligible building at a
particular time (in this sub-section referred to as the 'relevant time') if-

   (a)  the person-

        (i)    was, at the relevant time, the lessee of the whole, or a part,
               of the part of the building to which the expenditure is
               attributable;

        (ii)   incurred that amount of qualifying hotel expenditure or
               qualifying apartment expenditure, as the case may be, in
               respect of the eligible building; and

        (iii)  was, at all times after the completion of the relevant
               construction, and before the relevant time, the lessee of the
               whole, or of a part, of the part of the building to which that
               expenditure is attributable; or

   (b)  the person was, at the relevant time, the lessee of the whole, or of a
        part, of the part of the building to which the qualifying expenditure
        is attributable and obtained the lease of that part of the building,
        or of a part of that part of the building, by assignment from a person
        who, immediately before the assignment, was an eligible lessee in
        relation to that amount of qualifying hotel expenditure or qualifying
        apartment expenditure, as the case may be, by virtue of the
        application of paragraph (a) or by virtue of a previous application of
        this paragraph.



"(9) Where 2 or more rooms, being bedrooms or including a bedroom or bedrooms,
are for use together as a suite of rooms, that suite of rooms shall, for the
purposes of this Division, be taken to constitute one bedroom.



"(10) For the purposes of this Division, any part of a building that is for
use, or is used, in the provision of a facility of a kind not commonly
provided in a hotel, motel or guest house in Australia, shall be taken not to
be for use, or used, as the case may be, for the purpose of operating a hotel,
motel or guest house.



"(11) For the purposes of this Division, any facility of a kind that is not
commonly provided in a hotel, motel or guest house in Australia shall be taken
not to be a facility for use in association with the provision of
accommodation for travellers in apartments, units or flats.



"(12) Where a group of buildings constitutes a complex of buildings-

   (a)  the group of buildings shall, for the purposes of this Division, other
        than this sub-section, be taken to be one building; and

   (b)  none of the buildings in the group shall be taken, for the purposes of
        this Division, other than this sub-section, to be a building.



"(13) Where a building is constructed and, after the completion of
construction, that building and another building or other buildings are, by
virtue of sub-section (12), to be taken together to constitute one building,
the construction of the first-mentioned building shall be taken to be the
construction of an extension to a building.



"(14) References in this Division to a person shall be read as including
references to a partnership or a person in the capacity of a trustee.



"(15) For the purposes of the application of this Division in determining the
amount of a deduction allowable under section 124AC or 124ZE, in respect of an
amount of qualifying hotel expenditure or qualifying apartment expenditure, a
person who owned the whole or a part of the hotel part or of the apartment
part, as the case may be, shall not be taken to have dealt with any part of
the hotel part or apartment part, as the case may be, in the prescribed manner
at any time before the date on which the relevant construction was completed.



"(16) For the purposes of this Division, the residual capital expenditure in
relation to an amount of qualifying hotel expenditure or qualifying apartment
expenditure in respect of an eligible building at any time (in this
sub-section referred to as the 'relevant time') is the amount (if any)
ascertained by deducting from that amount of qualifying hotel expenditure or
qualifying apartment expenditure, as the case may be, the amount or the sum of
the amounts that, in respect of the period commencing on the day on which the
hotel part or apartment part, as the case may be, was first used by any person
for any purpose after completion of the relevant construction and ending at
the relevant time, would have been allowed, or would be allowable, to a
taxpayer as a deduction or deductions under section 124ZC if-

   (a)  the taxpayer were the owner of the eligible building during the whole
        of that period;

   (b)  the taxpayer had dealt with the hotel part or apartment part, as the
        case may be, in the prescribed manner during the whole of that period;
        and

   (c)  section 124ZD were not applicable in relation to that deduction or any
        of those deductions, as the case may be.



"(17) For the purposes of this Division, a bedroom, apartment, unit or flat
contained in a building shall be taken not to have been used, and not to have
been for use, for any purpose at a particular time if-

   (a)  a right to use or occupy the bedroom, apartment, unit or flat was, at
        that time, vested in a person; and

   (b)  that right was vested in that person by reason that the person was, at
        that time, a shareholder in a company, a beneficiary of a trust estate
        or a partner in a partnership.



"(18) For the purposes of this Division, where, at any time, a bedroom,
apartment, unit or flat in a building is owned or leased by a person (in this
sub-section referred to as the 'relevant person') and that bedroom, apartment,
unit or flat is used, or reserved for use, by-

   (a)  in a case to which paragraph (b) does not apply-the relevant person;
        or

   (b)  in a case where the relevant person is a partnership-any of the
        partners in the partnership, no part of that bedroom, apartment, unit
        or flat shall be taken to have been used, at that time, by the
        relevant person for the purpose of producing assessable income.



"(19) For the purposes of determining whether a deduction is allowable under
this Division, in respect of an amount of qualifying hotel expenditure in
respect of a building, to a taxpayer who, during the whole or a part of a year
of income (which whole or part, as the case may be, is in this sub-section
referred to as the 'relevant period') was the owner of the whole or of a part
of the hotel part, where-

   (a)  during the whole or a part of the relevant period, a bedroom was
        contained in the building; and

   (b)  during the relevant period or that part of the relevant period, as the
        case may be, that bedroom was used, or made available for use,
        principally for the provision of short-term accommodation for
        travellers, that bedroom shall be taken to have been used, or made
        available for use, wholly for the provision of short-term
        accommodation for travellers during-

   (c)  in a case to which paragraph (a) applies-the whole of the relevant
        period; or

   (d)  in a case to which paragraph (b) applies-during the whole of the part
        of the relevant period referred to in that paragraph.



"(20) For the purposes of determining whether a deduction is allowable under
this Division, in respect of an amount of qualifying apartment expenditure in
respect of building, to a taxpayer who, during the whole or a part of a year
of income (which whole or part, as the case may be, is in this sub-section
referred to as the 'relevant period') was the owner of the whole or of a part
of the apartment part, where-

   (a)  during the whole or a part of the relevant period, the taxpayer owned
        or leased an apartment, unit or flat in the building; and

   (b)  during the relevant period or that part of the relevant period, as the
        case may be, that apartment, unit or flat was used, or made available
        for use, principally for the provision of short-term accommodation for
        travellers, that apartment, unit or flat shall be taken to have been
        used, or made available for use, wholly for the provision of
        short-term accommodation for travellers during-

   (c)  in a case to which paragraph (a) applies-the whole of the relevant
        period; or

   (d)  in a case to which paragraph (b) applies-during the whole of the part
        of the relevant period referred to in that paragraph.



"(21) For the purposes of the application of this Division in determining the
amount of a deduction allowable under section 124ZC or 124ZE in respect of an
amount of qualifying expenditure in respect of a building, a person who, at a
particular time (in this sub-section referred to as the 'relevant time'), is
an eligible lessee in relation to that amount of qualifying expenditure shall,
subject to sub-section (24), be taken at the relevant time to be the owner of
so much of the building as satisfies the following conditions, namely:

   (a)  is leased by the person at that time;

   (b)  is a part of the building to which the whole or a part of the amount
        of qualifying expenditure is attributable; and

   (c)  was, at all times after the completion of the relevant construction
        and before the relevant time, leased and was not, at any time after
        completion of the relevant construction and before the relevant time,
        leased by a person who was not an eligible lessee in relation to that
        amount of qualifying expenditure.



"(22) Where, for the purposes of the application of this Division in
determining the amount of a deduction allowable under section 124ZC or 124ZE,
in respect of an amount of qualifying expenditure, a person is deemed by sub-
section (21) to be the owner of a building or of a part of a building at a
particular time, no other person shall be taken to be the owner of the
building or of that part of the building, as the case may be, at that time,
for the purposes of the application of the provisions of this Division, other
than paragraph (a) of sub-section (5), in determining the amount of a
deduction allowable under section 124ZC or 124ZE in respect of that amount of
qualifying expenditure.



"(23) In this Division, a reference, in relation to an amount of qualifying
expenditure, to the relevant construction shall be read as a reference to the
construction of the building, or of the extension, alteration or improvement,
as the case may be, to which the amount of qualifying expenditure is
attributable.



"(24) Where-

   (a)  during the whole or a part of a year of income (which whole or part,
        as the case may be, is in this sub-section referred to as the
        'relevant period') a taxpayer was the owner of a particular part (in
        this sub- section referred to as the 'relevant part') of the hotel
        part or apartment part in relation to an amount of qualifying
        expenditure; and

   (b)  during a part only of the relevant period the taxpayer was also the
        owner of another part of that hotel part or apartment part, as the
        case may be, then, for the purposes of the application of this
        Division in relation to the taxpayer in relation to the relevant part
        (other than an application of this Division in relation to the whole
        of the hotel part or apartment part, as the case may be, or in
        relation to a part of the hotel part or apartment part, as the case
        may be, of which the relevant part is only a part), the taxpayer shall
        not be taken to have been the owner of the relevant part at any time
        during the part of the relevant period referred to in paragraph (b).
        Qualifying expenditure

"124ZB. (1) Subject to this section, where-

   (a)  a person has incurred expenditure of a capital nature in respect of
        the construction of a building in Australia or in respect of the
        construction of an extension, alteration or improvement to a building
        in Australia;

   (b)  at the time when that expenditure was incurred-

        (i)    the building or the extension, alteration or improvement, as
               the case may be, was to be owned or leased by that person; or

        (ii)   a part only of the building or of the extension, alteration or
               improvement, as the case may be, was to be owned or leased by
               that person;

   (c)  the building or the extension, alteration or improvement, as the case
        may be, commenced to be constructed after 21 August 1979 and struction
        of the building or of that extension, alteration or improvement, as
        the case may be, has been completed; and

   (d)  at the time of completion of construction of the building, or of the
        extension, alteration or improvement, as the case may be-

        (i)    in a case to which sub-paragraph (i) of paragraph (b) applies-

                (A)  the building, or the extension, alteration or
                     improvement, as the case may be, was for use (whether by
                     that person or by another person or persons) wholly or
                     principally for the purpose of operating a hotel, motel
                     or guest house that, at that time, contained not fewer
                     than 10 bedrooms that were for use wholly or principally
                     for the provision of short-term accommodation for
                     travellers; or

                (B)  a part (in this clause referred to as the 'relevant
                     part') of the building, or of the extension, alteration
                     or improve- ment, as the case may be, was for use as
                     mentioned in clause (A); or

        (ii)   in a case to which sub-paragraph (ii) of paragraph (b) applies-

                (A)  the whole (in this clause referred to as the 'relevant
                     part') of the part of the building, extension, alteration
                     or improvement, as the case may be, to which that
                     subparagraph applies, was for use as mentioned in clause
                     (A) of sub-paragraph (i); or

                (B)  a part (in this clause referred to as the 'relevant
                     part') of the part of the building, extension, alteration
                     or improvement, as the case may be, to which that
                     sub-paragraph applies was for use as mentioned in clause
                     (A) of sub- paragraph (i), then, for the purposes of this
                     Division-

   (e)  in a case to which clause (A) of sub-paragraph (i) of paragraph (d)
        applies-the amount of the capital expenditure referred to in paragraph
        (a) shall be taken to be an amount of qualifying hotel expenditure in
        respect of the building; and

   (f)  in a case to which clause (B) of sub-paragraph (i) of paragraph (d),
        clause (A) of sub-paragraph (ii) of paragraph (d) or clause (B) of
        sub- paragraph (ii) of paragraph (d) applies-so much of the amount of
        the capital expenditure referred to in paragraph (a) as is
        attributable to the relevant part referred to in whichever of those
        clauses is applicable shall be taken to be an amount of qualifying
        hotel expenditure in respect of the building.



"(2) Subject to this section, where-

   (a)  a person has incurred expenditure of a capital nature in respect of
        the construction of a building in Australia or in respect of the
        construction of an extension, alteration or improvement to a building
        in Australia;

   (b)  the building or the extension, alteration or improvement, as the case
        may be, commenced to be constructed after 21 August 1979 and
        construction of the building or of the extension, alteration or
        improvement, as the case may be, has been completed;

   (c)  at the time of completion of construction of the building, or of the
        extension, alteration or improvement, as the case may be-

        (i)    the building consisted of 10 or more apartments, units or flats
               each of which was, at that time, for use wholly or principally
               for the provision of short-term accommodation for travellers;

        (ii)   the building consisted of-

                (A)  10 or more apartments, units or flats each of which was,
                     at that time, for use wholly or principally for the
                     provision of short-term accommodation for travellers; and

                (B)  facilities wholly or principally for use in association
                     with the provision of short-term accommodation for
                     travellers in those apartments, units or flats;

        (iii)  a part of the building consisted of 10 or more apartments,
               units or flats each of which was, at that time, for use wholly
               or principally for the provision of short-term accommodation
               for travellers; or

        (iv)   a part of the building consisted of-

                (A)  10 or more apartments, units or flats each of which was,
                     at that time, for use wholly or principally for the
                     provision of short-term accommodation for travellers; and

                (B)  facilities wholly or principally for use in association
                     with the provision of short-term accommodation for
                     travellers in those apartments, units or flats; and

   (d)  at the time when that expenditure was incurred-

        (i)    the building or the extension, alteration or improvement, as
               the case may be, was to be owned or leased by that person; or

        (ii)   a part only of the building or of the extension, alteration or
               improvement, as the case may be, was to be owned or leased by
               that person, then, for the purposes of this Division-

   (e)  in a case to which sub-paragraph (i) or (ii) of paragraph (c) applies
        and to which sub-paragraph (i) of paragraph (d) applies-the amount of
        the capital expenditure referred to in paragraph (a) shall be taken to
        be an amount of qualifying apartment expenditure in respect of the
        building;

   (f)  in a case to which sub-paragraph (i) or (ii) of paragraph (c) applies
        and to which sub-paragraph (ii) of paragraph (d) applies-so much of
        the amount of the capital expenditure referred to in paragraph (a) as
        is attributable to the part of the building referred to in
        sub-paragraph (ii) of paragraph (d) shall be taken to be an amount of
        qualifying apartment expenditure in respect of the building;

   (g)  in a case to which sub-paragraph (iii) or (iv) of paragraph (c)
        applies and to which sub-paragraph (i) of paragraph (d) applies-so
        much of the amount of the capital expenditure referred to in paragraph
        (a) as is attributable to the part of the building referred to in
        sub-paragraph (iii) of paragraph (c) or sub-paragraph (iv) of
        paragraph (c), as the case may be, shall be taken to be an amount of
        qualifying apartment expenditure in respect of the building; and

   (h)  in a case to which sub-paragraph (iii) or (iv) of paragraph (c)
        applies and to which sub-paragraph (ii) of paragraph (d) applies-so
        much of the amount of the capital expenditure referred to in paragraph
        (a) as is attributable to the part of the building referred to in
        sub-paragraph (iii) of paragraph (c) or sub-paragraph (iv) of
        paragraph (c), as the case may be, and is also attributable to the
        part of the building referred to in sub-paragraph (ii) of paragraph
        (d) shall be taken to be an amount of qualifying apartment expenditure
        in respect of the building.



"(3) References in sub-section (1) or (2) to expenditure of a capital nature
incurred in respect of the construction of a building, or of an extension,
alteration or improvement to a building, shall be read as not including
references to expenditure in respect of any property in respect of which
depreciation is allowable under section 54. Deductions in respect of capital
expenditure

"124ZC. (1) Subject to this section and section 124ZD, where-

   (a)  there is an amount of qualifying hotel expenditure in respect of a
        building; and

   (b)  during the whole of a year of income, a taxpayer-

        (i)    was the owner of the hotel part and dealt with the hotel part
               in the prescribed manner; or

        (ii)   was the owner of a part of the hotel part and dealt with that
               part of the hotel part in the prescribed manner, the taxpayer
               is entitled to a deduction, in his assessment in respect of
               income of that year of income, of an amount equal to-

   (c)  in a case to which sub-paragraph (i) of paragraph (b) applies-2 1/2%
        of the amount of qualifying hotel expenditure; and

   (d)  in a case to which sub-paragraph (ii) of paragraph (b) applies-so much
        of the amount calculated in accordance with paragraph (c) as the
        Commissioner determines, having regard to the extent to which the
        amount of qualifying hotel expenditure is attributable to the part of
        the hotel part referred to in that sub-paragraph.



"(2) Subject to this section and section 124ZD, where-

   (a)  there is an amount of qualifying hotel expenditure in respect of a
        building; and

   (b)  during a part only of a year of income, a taxpayer-

        (i)    was the owner of the hotel part and dealt with the hotel part
               in the prescribed manner; or

        (ii)   was the owner of a part of the hotel part and dealt with that
               part of the hotel part in the prescribed manner, the taxpayer
               is entitled to a deduction, in his assessment in respect of
               income of that year of income, of an amount equal to-

   (c)  in a case to which sub-paragraph (i) of paragraph (b) applies-2 1/2%
        of so much of that amount of qualifying hotel expenditure as bears to
        that amount the same proportion as the number of whole days in that
        part of the year of income bears to the number of days in the year of
        income; and

   (d)  in a case to which sub-paragraph (ii) of paragraph (b) applies-so much
        of the amount calculated in accordance with paragraph (c) as the
        Commissioner determines, having regard to the extent to which the
        amount of qualifying hotel expenditure is attributable to the part of
        the hotel part referred to in that sub-paragraph.



"(3) Subject to this section and section 124ZD, where-

   (a)  there is an amount of qualifying apartment expenditure in respect of a
        building; and

   (b)  during the whole of a year of income, a taxpayer-

        (i)    was the owner of the apartment part and dealt with the
               apartment part in the prescribed manner; or

        (ii)   was the owner of a part of the apartment part and dealt with
               that part of the apartment part in the prescribed manner, the
               taxpayer is entitled to a deduction, in his assessment in
               respect of income of that year of income, of an amount equal
               to-

   (c)  in a case to which sub-paragraph (i) of paragraph (b) applies-2 1/2%
        of the amount of qualifying apartment expenditure; and

   (d)  in a case to which sub-paragraph (ii) of paragraph (b) applies-so much
        of the amount calculated in accordance with paragraph (c) as the
        Commissioner determines, having regard to the extent to which the
        amount of qualifying apartment expenditure is attributable to the part
        of the apartment part referred to in that sub-paragraph.



"(4) Subject to this section and section 124ZD, where-

   (a)  there is an amount of qualifying apartment expenditure in respect of a
        building; and

   (b)  during a part only of a year of income, a taxpayer-

        (i)    was the owner of the apartment part and dealt with the
               apartment part in the prescribed manner; or

        (ii)   was the owner of a part of the apartment part and dealt with
               that part of the apartment part in the prescribed manner, the
               taxpayer is entitled to a deduction, in his assessment in
               respect of income of that year of income, of an amount equal
               to-

   (c)  in a case to which sub-paragraph (i) of paragraph (b) applies-2 1/2%
        of so much of that amount of qualifying apartment expenditure as bears
        to that amount the same proportion as the number of whole days in that
        part of the year of income bears to the number of days in the year of
        income; and

   (d)  in a case to which sub-paragraph (ii) of paragraph (b) applies-so much
        of the amount calculated in accordance with paragraph (c) as the
        Commissioner determines, having regard to the extent to which the
        amount of qualifying apartment expenditure is attributable to the part
        of the apartment part referred to in that sub-paragraph.



"(5) For the purposes of determining the amount of a deduction allowable to a
taxpayer under this section in respect of an amount of qualifying hotel
expenditure or qualifying apartment expenditure in respect of an eligible
building, the taxpayer shall be taken not to have dealt with any part of the
hotel part or apartment part, as the case may be, in the prescribed manner at
any time after the expiration of the period of 40 years commencing on the day
on which the hotel part or apartment part, as the case may be, was first used
by any person for any purpose after completion of the relevant construction.



"(6) Where-

   (a)  apart from this sub-section, a deduction (in this sub-section referred
        to as the 'relevant deduction') would be allowable to a taxpayer in
        respect of income of a year of income in respect of an amount of
        qualifying expenditure;

   (b)  the Commissioner is satisfied that, after 1 May 1980, the taxpayer
        entered into an agreement, arrangement or understanding with an exempt
        body under which the taxpayer was to pay an amount, or transfer
        property, directly or indirectly, to the exempt body, being an amount
        which, or property the value of which, was to be calculated by
        reference to the amount of any deduction allowable to the taxpayer
        under this Division in respect of that qualifying expenditure in
        relation to that year of income; and

   (c)  the Commissioner is satisfied that the agreement, arrangement or
        understanding was entered into for the purpose, or for purposes that
        included the purpose (not being a merely incidental purpose), of
        securing that the benefit of any reduction in the liability to tax of
        the taxpayer that would, but for this sub-section, result from the
        allowance of the relevant deduction would pass wholly or substantially
        to the exempt body, whether directly or indirectly, the relevant
        deduction shall not be allowed to the taxpayer. Reduction of
        deductions

"124ZD. (1) Where-

   (a)  apart from this sub-section, a deduction would be allowable to a
        taxpayer under section 124ZC in respect of an amount of qualifying
        hotel expenditure in relation to the use of the hotel part of a part
        (in this sub-section referred to as the 'relevant part') of the hotel
        part during a year of income or a part of a year of income; and

   (b)  during the whole or a part of the year of income, or of that part of
        the year of income, as the case may be-

        (i)    any part of the hotel part or of the relevant part, as the case
               may be, was not used wholly or principally for the purpose of
               operating a hotel, motel or guest house; or

        (ii)   the hotel part or the relevant part, as the case may be, was
               used by the taxpayer only partly for the purpose of producing
               assessable income, the amount of the deduction shall be reduced
               by such amount as the Commissioner considers fair and
               reasonable.



"(2) Where, apart from this sub-section, a deduction would be allowable to a
taxpayer under section 124ZC in respect of an amount of qualifying apartment
expenditure in relation to the use of the apartment part or of a part (in this
sub-section referred to as the 'relevant part') of the apartment part during a
year of income or a part of a year of income and-

   (a)  during the whole or a part of the year of income, or of that part of
        the year of income, as the case may be, any part of the apartment part
        or of the relevant part, as the case may be, was not used, or made
        available for use, wholly for, or in association with, the provision
        of short-term accommodation for travellers; or

   (b)  during the whole or a part of the year of income, or of that part of
        the year of income, as the case may be, the apartment part or the
        relevant part, as the case may be, was used by the taxpayer only
        partly for the purpose of producing assessable income, the amount of
        the deduction shall be reduced by such amount as the Commissioner
        considers fair and reasonable.



"(3) For the purposes of sub-section (2), a facility in a building shall be
taken to be used, or made available for use, wholly in association with the
provision of short-term accommodation for travellers at a particular time only
if, at that time, it is used, or made available for use, wholly or principally
in association with the provision of short-term accommodation in eligible
apartments, units or flats contained in the building.



"(4) For the purposes of sub-section (3), an apartment, unit or flat contained
in an eligible apartment building shall be taken to be an eligible apartment,
unit or flat at a particular time if the whole or a part of an amount of
qualifying apartment expenditure is attributable to the whole or a part (which
whole or part, as the case may be, is in this sub-section referred to as the
'relevant part') of the apartment, unit or flat, as the case may be, and-

   (a)  where the relevant part is the apartment part in relation to that
        amount of qualifying apartment expenditure-the owner of the apartment
        part at that time is taken to have dealt with the apartment part in
        the prescribed manner at that time or would, but for the operation of
        sub- section (5) of section 124ZC, be taken to have dealt with the
        apartment part in the prescribed manner at that time; and

   (b)  where the relevant part is a part of the apartment part in relation to
        that amount of qualifying apartment expenditure-the owner of that part
        of the apartment part at that time is taken to have dealt with that
        part of the apartment part in the prescribed manner at that time or
        would, but for the operation of sub-section (5) of section 124ZC, be
        taken to have dealt with that part of the apartment part in the
        prescribed manner at that time.



"(5) Where-

   (a)  by reason of the destruction of an eligible building or a part of an
        eligible building, a deduction (in this sub-section referred to as the
        'relevant deduction') is allowable in respect of the whole or a part
        of the residual capital expenditure in relation to an amount of
        qualifying hotel expenditure or qualifying apartment expenditure in
        respect of the eligible building; and

   (b)  in respect of any part of the period commencing on the day on which
        the hotel part or apartment part, as the case may be, was first used
        by any person for any purpose after completion of the relevant
        construction and ending immediately before the time of destruction-

        (i)    a deduction has not been allowed and is not allowable under
               section 124ZC to any person in respect of that amount of
               qualify- ing hotel expenditure or qualifying apartment
               expenditure; or

        (ii)   a deduction that has been allowed or is allowable under section
               124ZC to any person in respect of that amount of qualifying
               hotel expenditure or qualifying apartment expenditure has been
               reduced, or is liable to be reduced, by virtue of the
               application of sub-section (1) or (2) of this section, the
               relevant deduction shall be reduced by such amount as the
               Commissioner considers fair and reasonable. Deduction in
               respect of destruction of building

"124ZE. (1) Subject to this section and section 124ZD, where-

   (a)  there is an amount of qualifying hotel expenditure in respect of a
        building;

   (b)  during a year of income, the hotel part is destroyed;

   (c)  immediately before the destruction, a taxpayer owned the hotel part or
        a part (in this sub-section referred to as the 'relevant part') of the
        hotel part;

   (d)  at any time before the destruction, the taxpayer used the hotel part
        or the relevant part, as the case may be, in the prescribed manner;

   (e)  if the taxpayer did not use the hotel part or the relevant part, as
        the case may be, in the prescribed manner immediately before the time
        of the destruction, no part of the hotel part or of the relevant part,
        as the case may be, that, at the time (in this paragraph referred to
        as the 'relevant time') when the hotel part or the relevant part, as
        the case may be, was last used in the prescribed manner, was used for
        the purpose of operating a hotel, motel or guest house was used by any
        person for any purpose after the relevant time and before the time of
        the destruction;

   (f)  in a case where the taxpayer owned the whole of the hotel part
        immediately before the time of the destruction, the residual capital
        expenditure at that time in relation to the amount of qualifying hotel
        expenditure exceeds the amount (if any) received or receivable by the
        taxpayer (under a policy of insurance or otherwise) in respect of the
        destruction of the hotel part; and

   (g)  in a case where the taxpayer owned a part only of the hotel part
        immediately before the time of the destruction, so much of the
        residual capital expenditure at that time in relation to the amount of
        qualifying hotel expenditure as is attributable to the relevant part
        exceeds the amount (if any) received or receivable by the taxpayer
        (under a policy of insurance or otherwise) in respect of the
        destruction of the relevant part, the taxpayer is entitled, in his
        assessment in respect of income of the year of income, to a deduction
        of an amount equal to-

   (h)  in a case to which paragraph (f) applies-the excess referred to in
        that paragraph; and

   (j)  in a case to which paragraph (g) applies-the excess referred to in
        that paragraph.



"(2) Subject to this section and section 124ZD, where-

   (a)  there is an amount of qualifying hotel expenditure in respect of a
        building;

   (b)  during a year of income, a part (in this sub-section referred to as
        the 'destroyed part') of the hotel part is destroyed;

   (c)  immediately before the destruction, a taxpayer owned the destroyed
        part or a part (in this sub-section referred to as the 'relevant
        part') of the destroyed part;

   (d)  at any time before the destruction, the taxpayer used the destroyed
        part or the relevant part, as the case may be, in the prescribed
        manner;

   (e)  if the taxpayer did not use the destroyed part or the relevant part,
        as the case may be, in the prescribed manner immediately before the
        time of the destruction, no part of the destroyed part or of the
        relevant part, as the case may be, that, at the time (in this
        paragraph referred to as the 'relevant time') when the destroyed part
        or the relevant part, as the case may be, was last used in the
        prescribed manner, was used for the purpose of operating a hotel,
        motel or guest house was used by any person for any purpose after the
        relevant time and before the time of the destruction;

   (f)  in a case where the taxpayer owned the whole of the destroyed part
        immediately before the time of the destruction, so much of the
        residual capital expenditure at that time in relation to the amount of
        qualifying hotel expenditure as is attributable to the destroyed part
        exceeds the amount (if any) received or receivable by the taxpayer
        (under a policy of insurance or otherwise) in respect of the
        destruction of the destroyed part; and

   (g)  in a case where the taxpayer owned a part only of the destroyed part
        immediately before the time of the destruction, so much of the
        residual capital expenditure at that time in relation to the amount of
        qualifying hotel expenditure as is attributable to the relevant part
        exceeds the amount (if any) received or receivable by the taxpayer
        (under a policy of insurance or otherwise) in respect of the
        destruction of the relevant part, the taxpayer is entitled, in his
        assessment in respect of income of the year of income, to a deduction
        of an amount equal to-

   (h)  in a case to which paragraph (f) applies-the excess referred to in
        that paragraph; and

   (j)  in a case to which paragraph (g) applies-the excess referred to in
        that paragraph.



"(3) Subject to this section and section 124ZD, where-

   (a)  there is an amount of qualifying apartment expenditure in respect of a
        building;

   (b)  during a year of income, the apartment part is destroyed;

   (c)  immediately before the destruction, a taxpayer owned the apartment
        part or a part (in this sub-section referred to as the 'relevant
        part') of the apartment part;

   (d)  at any time before the destruction, the taxpayer used the apartment
        part or the relevant part, as the case may be, in the prescribed
        manner;

   (e)  if the taxpayer did not use the apartment part or the relevant part,
        as the case may be, in the prescribed manner immediately before the
        time of the destruction, no part of the apartment part or of the
        relevant part, as the case may be, that, at the time (in this
        paragraph referred to as the 'relevant time') when the apartment part
        or the relevant part, as the case may be, was last used in the
        prescribed manner, was used, or made available for use, for, or in
        association with, the provision of short- term accommodation for
        travellers was used by any person for any purpose after the relevant
        time and before the time of the destruction;

   (f)  in a case where the taxpayer owned the whole of the apartment part
        immediately before the time of the destruction, the residual capital
        expenditure at that time in relation to the amount of qualifying
        apartment expenditure exceeds the amount (if any) received or
        receivable by the taxpayer (under a policy of insurance or otherwise)
        in respect of the destruction of the apartment part; and

   (g)  in a case where the taxpayer owned a part only of the apartment part
        immediately before the time of the destruction, so much of the
        residual capital expenditure at that time in relation to the amount of
        qualifying apartment expenditure as is attributable to the relevant
        part exceeds the amount (if any) received or receivable by the
        taxpayer (under a policy of insurance or otherwise) in respect of the
        destruction of the relevant part, the taxpayer is entitled, in his
        assessment in respect of income of the year of income, to a deduction
        of an amount equal to-

   (h)  in a case to which paragraph (f) applies-the excess referred to in
        that paragraph; and

   (j)  in a case to which paragraph (g) applies-the excess referred to in
        that paragraph.



"(4) Subject to this section and section 124ZD, where-

   (a)  there is an amount of qualifying apartment expenditure in respect of a
        building;

   (b)  during a year of income, a part (in this sub-section referred to as
        the 'destroyed part') of the apartment part is destroyed;

   (c)  immediately before the destruction, a taxpayer owned the destroyed
        part or a part (in this sub-section referred to as the 'relevant
        part') of the destroyed part;

   (d)  at any time before the destruction, the taxpayer used the destroyed
        part or the relevant part, as the case may be, in the prescribed
        manner;

   (e)  if the taxpayer did not use the destroyed part or the relevant part,
        as the case may be, in the prescribed manner immediately before the
        time of the destruction, no part of the destroyed part or of the
        relevant part, as the case may be, that, at the time (in this
        paragraph referred to as the 'relevant time') when the destroyed part
        or the relevant part, as the case may be, was last used in the
        prescribed manner, was used, or made available for use, for, or in
        association with, the provision of short-term accommodation for
        travellers was used by any person for any purpose after the relevant
        time and before the time of the destruction of the destroyed part;

   (f)  in a case where the taxpayer owned the whole of the destroyed part
        immediately before the time of the destruction, so much of the
        residual capital expenditure at that time in relation to the amount of
        qualifying apartment expenditure as is attributable to the destroyed
        part exceeds the amount (if any) received or receivable by the
        taxpayer (under a policy of insurance or otherwise) in respect of the
        destruction of the destroyed part; and

   (g)  in a case where the taxpayer owned a part only of the destroyed part
        immediately before the time of the destruction, so much of the
        residual capital expenditure at that time in relation to the amount of
        qualifying apartment expenditure as is attributable to the relevant
        part exceeds the amount (if any) received or receivable by the
        taxpayer (under a policy of insurance or otherwise) in respect of the
        destruction of the relevant part, the taxpayer is entitled, in his
        assessment in respect of income of the year of income, to a deduction
        of an amount equal to-

   (h)  in a case to which paragraph (f) applies-the excess referred to in
        that paragraph; and

   (j)  in a case to which paragraph (g) applies-the excess referred to in
        that paragraph.



"(5) Where-

   (a)  a building or a part of a building is destroyed; and

   (b)  an amount is received or receivable by a person who, immediately
        before the time of the destruction, owned the whole or a part of the
        building in respect of the disposal of any property (in this
        sub-section referred to as the 'relevant property') that, immediately
        before the destruction, formed part of the building or of that part of
        the building, as the case may be, that was destroyed, the amount so
        received or receivable, reduced by any demolition costs incurred in
        respect of the relevant property, shall be taken to be an amount
        received or receivable by the person in respect of the destruction of
        the property of which the relevant property so formed part.



"(6) Where-

   (a)  an amount is received or receivable by a person under a policy of
        insurance or otherwise in respect of the destruction of property; and

   (b)  it is required to be determined for the purposes of this Division how
        much of the amount received or receivable was received or is
        receivable in respect of part of the property referred to in paragraph
        (a), so much of the amount referred to in paragraph (a) as, in the
        opinion of the Commissioner, relates to the part of the property
        referred to in paragraph (b) shall be taken to have been received or
        to be receivable, as the case may be, by the person in respect of the
        part of the property referred to in paragraph (b)." .