(1)  If, in relation to a State taxing law, there is a corresponding applied law, the State taxing law is to be read and construed with any modifications that are necessary or convenient –

(a) for the purpose of enabling the effective operation of the State taxing law in conjunction with the corresponding applied law; or

(b) for the purpose of enabling the State taxing law to operate so that a taxpayer has a combined liability under –

(i) the State taxing law; and

(ii) the corresponding applied law –

that is as nearly as possible the same as the taxpayer's liability would be under the State taxing law alone if the Commonwealth places in the State were not Commonwealth places.

(2)  Regulations may prescribe particular modifications that are to have effect under subsection (1) .

(3)  Modifications prescribed under subsection (2)  –

(a) may be expressed to take effect from a day that is earlier than the day on which the regulations are published in the Gazette (but not earlier than 6 October 1997); and

(b) may deal with the circumstances in which the modifications apply and with matters of a transitional or saving nature.