Commonwealth Numbered Acts

INCOME TAX ASSESSMENT AMENDMENT ACT 1984 No. 14 of 1984 - SECT 10

10. Section 82AA of the Principal Act is amended by adding at the end thereof
the following sub-sections:

"(2) Subject to sub-section (3), where a ship acquired or constructed by a
taxpayer becomes, after the commencement of this sub-section, an eligible
Australian ship and-

   (a)  in a case to which paragraph (b) does not apply-

        (i)    a deduction was not allowable under this Subdivision in respect
               of the ship for the reason that, or for reasons that included
               the reason that, the ship was for use outside Australia; and

        (ii)   if the ship had been acquired new by the taxpayer on the day on
               which it became an eligible Australian ship, the ship would be
               a unit of sub-section 82AA (1) property or would not be such a
               unit of property for the reason only that the ship is for use
               outside Australia; or

   (b)  in a case where the ship is a new ship the eligible date in relation
        to which is the commissioning date of the ship-the ship is not a unit
        of sub-section 82AA (1) property for the reason only that the ship is
        for use outside Australia, the ship shall be taken to be a unit of
        eligible property in relation to which this Subdivision applies if the
        ship is-

   (c)  in the case of any taxpayer-for use by the taxpayer otherwise than by-

        (i)    the leasing of the ship;

        (ii)   the letting of the ship on hire under a hire-purchase
               agreement; or

        (iii)  the granting to other persons of rights to use the ship; or

   (d)  in the case of a taxpayer being a leasing company-for use by another
        person to whom the taxpayer has, on or after 1 January 1976, leased
        the ship under a long-term lease agreement that was entered into by
        the taxpayer and the other person at arm's length.



"(3) An eligible Australian ship owned by a taxpayer shall not be taken to be
a unit of eligible property to which this Subdivision applies unless-

   (a)  the taxpayer has, in accordance with sub-section 57AM (6), made an
        election under sub-section 57AM (29) in respect of the ship; and

   (b)  if the ship is on lease to another person under a long-term lease
        agreement-the lessee has, in accordance with sub-section 57AM (6),
        made an election under sub-section 57AM (29) in respect of the ship.



"(4) For the purposes of the application, by virtue of sub-section (2), of a
provision of this Subdivision (other than sections 82AB and 82AD) in relation
to a sub-section 82AA (2) ship that was used for the purpose of producing
assessable income, or installed ready for use for that purpose, before the day
on which the ship became an eligible Australian ship, by-

   (a)  the owner of the ship (not being a leasing company); or

   (b)  a lessee to whom the owner of the ship, being a leasing company,
        leases the ship, the ship shall be deemed to have been first used for
        the purpose of producing assessable income, or installed ready for use
        for that purpose, on the day on which the ship became an eligible
        Australian ship.".