Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT (No. 3) 1992No. 98, 1992 - SECT 47

47. Section 124ZF of the Principal Act is amended:

   (a)  by inserting the following definitions in subsection (1): " 'eligible
        industrial manner', in relation to a building, has the meaning given
        by section 124ZFA; 'post-26 February 1992 qualifying expenditure'
        means qualifying expenditure where the building, or the extension,
        alteration or improvement, in respect of the construction of which the
        qualifying expenditure was incurred commenced to be constructed after
        26 February 1992; 'pre-27 February 1992 qualifying expenditure' means
        qualifying expenditure where the building, or the extension,
        alteration or improvement, in respect of the construction of which the
        qualifying expenditure was incurred commenced to be constructed before
        27 February 1992;";
(b) by inserting in subsection (11) "pre-27 February 1992" before "qualifying
expenditure" (first occurring);

   (c)  by inserting after subsection (11) the following subsection:

"(11A) For the purposes of this Division, if there is an amount of post-26
February 1992 qualifying expenditure in respect of an eligible building, the
amount of so much of the residual capital expenditure at a particular time
('relevant time') in relation to that qualifying expenditure as is
attributable to the prescribed part or a part ('relevant part') of the
prescribed part is the amount (if any) worked out by:

   (a)  identifying the period:
    (i)   commencing on the day on which the prescribed part
or relevant part was first used by any person for any purpose after completion
of the relevant construction; and

        (ii)   ending at the relevant time; and

   (b)  calculating, for each day (if any) in that period during the whole of
        which any part ('4% part') of the prescribed part or relevant part, as
        the case may be, was dealt with in an eligible industrial manner by a
        taxpayer who owned that part of the prescribed part or relevant part,
        the amount worked out using the formula:
             Portion of qualifying expenditure            0.04

Days in year where: 'Portion of qualifying expenditure' means so much of the
qualifying expenditure as is attributable to the 4% part; 'Days in year' means
the number of days in the financial year in which that day occurred; and

   (c)  calculating, for each day (if any) in that period during which any
        part of which any part ('2.5% part') of the prescribed part or
        relevant part, as the case may be, was not dealt with in an eligible
        industrial manner by a taxpayer who owned that part of the prescribed
        part or relevant part, the amount worked out using the formula:
                 Portion of qualifying expenditure        0.025

Days in year where: 'Portion of qualifying expenditure' means so much of the
qualifying expenditure as is attributable to the 2.5% part; 'Days in year'
means the number of days in the financial year in which that day occurred; and

   (d)  adding the amounts calculated under paragraphs (b) and (c); and

   (e)  deducting the result of the addition mentioned in paragraph (d) from
        so much of the amount of that qualifying expenditure as is
        attributable to the prescribed part or relevant part, as the case
        requires.".