Commonwealth Numbered Acts

INCOME TAX LAWS AMENDMENT ACT 1981 No. 108 of 1981 - SECT 8

8. After section 57AH of the Principal Act the following section is inserted:
Special depreciation on storage facilities for petroleum fuel

"57AJ. (1) In this section, 'petroleum fuel' means petroleum or a product
obtained by refining petroleum, being petroleum or such a product that is in a
liquid or gaseous state at a temperature of 20 degrees Celsius and a pressure
of 1 atmosphere.



"(2) Subject to sub-section (3), 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, or would but for sections 122N and 124AN be
        allowable, to the taxpayer under section 54 in respect of that unit of
        property in relation to the year of income;

   (b)  during the year of income -

        (i)    the unit of property was first used by the taxpayer for the
               purpose of producing assessable income (not having been
               installed ready for use for that purpose and held in reserve in
               a previous year of income); or

        (ii)   the unit of property was first installed ready for use for the
               purpose of producing assessable income and held in reserve;

   (c)  the unit of property -

        (i)    was acquired by the taxpayer under a contract entered into on
               or after 1 October 1980; or

        (ii)   was constructed by the taxpayer and commenced to be constructed
               on or after 1 October 1980;

   (d)  the unit of property was not, before 1 October 1980, installed at a
        place at which, during the year of income, the taxpayer used the
        property for the purpose of producing assessable income or held the
        property in reserve; and

   (e)  the unit of property was not, at any time during the year of income
        when it was owned by the taxpayer, used, or installed ready for use
        and held in reserve, otherwise than -

        (i)    wholly and exclusively for the purpose of the storage in
               Australia of petroleum fuel for the purpose of -

                (A)  sale as fuel; or

                (B)  use as fuel in the course of the carrying on of a
                     business; or

        (ii)   wholly and exclusively for the purpose of conveying petroleum
               fuel into or out of, or measuring the amount of petroleum fuel
               in, any other unit of property (not being a unit of property to
               which paragraph (3) (a) or (b) applies) that was owned by the
               taxpayer and used, or installed ready for use and held in
               reserve, wholly and exclusively for the purpose of the storage
               in Australia of petroleum fuel for the purpose of -

                (A)  sale as fuel; or

                (B)  use as fuel in the course of carrying on a business.



"(3) This section does not apply to a unit of property being -

   (a)  a ship, a unit of railway rolling stock, a road vehicle, a pipeline, a
        container or any other unit of property that is for use in the
        transport of fuel; or

   (b)  a unit of property that is for use for the storage of fuel in or on a
        ship, a unit of railway rolling stock, a road vehicle, an aircraft or
        any other vehicle.



"(4) Notwithstanding anything contained in sections 55, 56, 56A, 57, 122N and
124AN, 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 100% of the cost of the unit.



"(5) Sub-section 56 (4) applies for the purposes of sub-section (4) of this
section in like manner as that first-mentioned sub-section applies in relation
to paragraph 56 (1) (b).



"(6) Sub-sections 57AH (7), (8), (9) and (10) apply for the purposes of this
section as if -

   (a)  those sub-sections were included in this section;

   (b)  'sub-section (3)' were omitted from paragraph 57AH (7) (c) and
        'sub-section (4)' were substituted;

   (c)  'sub-section (3)' were omitted from paragraph 57AH (8) (c) and
        'sub-section (4)' were substituted; and

   (d)  '(6),' were omitted from sub-section 57AH (9).".