Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT (No. 5) 1988 No. 153 of 1988 - SECT 26

26. After Division 16G of Part III of the Principal Act the following Division
is inserted:
              "Division 16H-Termination of Gold Mining Exemptions


"Subdivision A-Paragraph 23 (o), subparagraph 23 (pa) (iv) and
section 23C Termination of paragraph 23 (o) exemption

"159GZZG. (1) Paragraph 23 (o) does not apply to income derived after 31
December 1990, unless the income derived consists of a dividend to which
subsection 23C (2) applies.

"(2) For the purposes of applying paragraph 23 (o) in accordance with
subsection (1) of this section to income derived during the year of income in
which 31 December 1990 occurs, the reference in that paragraph to the end of
the year of income shall be taken to be a reference to the end of 31 December
1990. Removal of exclusion of gold from subparagraph 23 (pa) (iv)

"159GZZH. Paragraph 23 (pa) applies to income derived after 31 December 1990
as if ", other than gold," were omitted from subparagraph (iv) of that
paragraph. Termination of exemption under section 23C

"159GZZI. (1) Subsection 23C (1) does not apply to income derived after 31
December 1990.

"(2) For the purposes of applying subsection 23C (1) in accordance with
subsection (1) of this section to income derived during the year of income in
which 31 December 1990 occurs, the reference in that subsection to the last
day of the year of income shall be taken to be a reference to 31 December
1990.
               "Subdivision B-Division 10 and related provisions
Interpretation

"159GZZJ. In this Subdivision:
'actual deduction', in relation to the changeover year or a subsequent year of
income of a taxpayer, in relation to an amount of eligible gold mining
expenditure of the taxpayer, means the deduction actually allowed or allowable
for the year in relation to the expenditure under Division 10 (other than
section 122K) in its application in accordance with this Subdivision;
'changeover year', in relation to a taxpayer, means the year of income of the
taxpayer in which 1 January 1991 occurs;
'deduction limiting provision' means subsection 122D (3), 122DB (3), 122DD
(3), 122DF (3) or 122DG (6);
'deemed gold exploration or prospecting expenditure' means expenditure that is
taken by section 159GZZQ to be incurred on 1 January 1991;
'eligible gold exploration or prospecting expenditure', in relation to a
taxpayer, means expenditure that:

   (a)  is or was incurred by the taxpayer after 25 May 1988 and before 1
        January 1991; and

   (b)  is not expenditure of a kind referred to in subsection 122J (1) but
        would, if paragraph 23 (o) or section 159GZZV had not been enacted, be
        expenditure of a kind referred to in that subsection;
'eligible gold mining expenditure', in relation to a taxpayer, means:

   (a)  expenditure that:

        (i)    is or was incurred by the taxpayer before 1 January 1991; and

        (ii)   is not allowable capital expenditure of the taxpayer for the
               purposes of Division 10 but would, for the purposes of that
               Division, be allowable capital expenditure (other than by
               virtue of paragraph 122A (1) (d)) of the taxpayer if paragraph
               23 (o) or section 159GZZV had not been enacted; or

   (b)  expenditure that the taxpayer is taken to have incurred under
        subparagraph 159GZZU (3) (e) (i);
'notional deduction', in relation to the changeover year or a prior year of
income of a taxpayer, in relation to an amount of eligible gold mining
expenditure of the taxpayer, means:

   (a)  in the case of a year of income before the changeover year-the
        deduction that would be allowable to the taxpayer in respect of the
        expenditure for the year of income if the notional writing-down
        assumptions were made; and

   (b)  in the case of the changeover year-a proportion of the deduction that,
        apart from section 159GZZL and before the application of any deduction
        limiting provision, would be allowable to the taxpayer in respect of
        the expenditure for the changeover year, being a proportion
        ascertained in accordance with the formula:
Pre-1 January part
Post-expenditure part
where:
Pre-1 January part means:

        (i)    if the expenditure is incurred before the changeover year-the
               number of days in the part of the changeover year ending at the
               end of 31 December 1990; or

        (ii)   if the expenditure is incurred in the changeover year-the
               number of days in the period from the beginning of the day on
               which the expenditure is incurred until the end of 31 December
               1990; and
Post-expenditure part means:

        (iii)  if the expenditure is incurred before the changeover year-the
               number of days in the changeover year; or

        (iv)   if the expenditure is incurred in the changeover year-the
               number of days in the period from the beginning of the day on
               which the expenditure is incurred until the end of the
               changeover year;
'notional writing-down assumptions' means the following assumptions:

   (a)  that paragraph 23 (o) and sections 122P and 159GZZV were never
        enacted;

   (b)  that, for years of income before the changeover year, the deduction
        limiting provisions and section 80 were not applicable in relation to
        deductions for eligible gold mining expenditure;

   (c)  that, for the purposes of applying section 122B in relation to the
        acquisition, during or before the changeover year of the vendor
        referred to in that section, of a mining or prospecting right or
        mining or prospecting information, eligible gold mining expenditure
        were not expenditure referred to in paragraph (2) (a) or (c) of that
        section;

   (d)  that sections 122E, 122F, 122G, 122H and 122Q were not applicable to
        eligible gold mining expenditure; and

   (e)  that section 122K were not applicable to property disposed of, lost or
        destroyed, or whose use for purposes referred to in that section is or
        was otherwise terminated, during or before the changeover year, to the
        extent that eligible gold mining expenditure is or was incurred on the
        property. Eligible gold mining expenditure-Division 10 applies as if
        notional writing-down assumptions made

"159GZZK. Subject to this Subdivision, where a taxpayer incurs or incurred
eligible gold mining expenditure, Division 10 applies to the expenditure for
the changeover year and all subsequent years of income as if the notional
writing-down assumptions were made. Eligible gold mining
expenditure-proportionate deduction for changeover year

"159GZZL. Subject to the application of any deduction limiting provision, a
taxpayer is entitled under Division 10, in its application in accordance with
this Subdivision, to only a proportion of any deduction that, apart from this
section and before the application of any deduction limiting provision, would
be allowable to the taxpayer for the changeover year in respect of an amount
of eligible gold mining expenditure incurred by the taxpayer, being a
proportion ascertained in accordance with the formula:
Post-31 December part
Post-expenditure part where:
Post-31 December part means the number of days in the part of the changeover
year occurring after 31 December 1990; and
Post-expenditure part means:

   (a)  if the expenditure is incurred before the changeover year-the number
        of days in the changeover year; or

   (b)  if the expenditure is incurred in the changeover year-the number of
        days in the period from the beginning of the day on which the
        expenditure is incurred until the end of the changeover year. Eligible
        gold mining expenditure-modified references to changeover year

"159GZZM. In applying Division 10 in accordance with this Subdivision, for
years of income after the changeover year, in relation to an amount of
eligible gold mining expenditure, the following provisions have effect:

   (a)  for the purposes of references in subsections 122DG (4) and (5) to the
        amount that, but for any deduction limiting provision, would have been
        allowable as a deduction for the changeover year, section 159GZZL
        shall be disregarded;

   (b)  for the purposes of other references in Division 10, the deduction
        allowed or allowable in respect of the changeover year shall be taken
        to have been the sum of the actual deduction and the notional
        deduction for the changeover year. Eligible gold mining
        expenditure-election that property be depreciated under section 57AL

"159GZZN. (1) Where eligible gold mining expenditure incurred by a taxpayer on
a unit of property is expenditure in respect of which depreciation would be
allowable to the taxpayer in accordance with section 57AL if paragraph 23 (o),
subsection 57AL (7) and Division 10 had not been enacted, the following
provisions have effect:

   (a)  the taxpayer may, in accordance with subsection (2), elect that this
        subsection shall apply in relation to all such expenditure incurred by
        the taxpayer on the unit of property;

   (b)  where such an election is made:

        (i)    depreciation is allowable to the taxpayer in respect of the
               expenditure on the unit in accordance with section 57AL for the
               part of the changeover year occurring after 31 December 1990,
               and for all subsequent years of income, as if paragraph 23 (o),
               subsection 57AL (7) and Division 10 had not been enacted; and

        (ii)   the expenditure is not, and shall be taken never to have been,
               eligible gold mining expenditure of the taxpayer for the
               purposes of this Subdivision.

"(2) An election under subsection (1) shall:

   (a)  be made in writing signed by or on behalf of the taxpayer; and

   (b)  be delivered to the Commissioner on or before the last day for the
        furnishing of the return of income of the changeover year or within
        such further time as the Commissioner allows. Eligible gold mining
        expenditure-modified application of section 122K

"159GZZO. Where, apart from this section:

   (a)  subsection 122K (2), in its application in accordance with this
        Subdivision, would require an amount to be included in the assessable
        income of a taxpayer of a year of income after the changeover year; or

   (b)  subsection 122K (3), in its application in accordance with this
        Subdivision, would require an amount to be allowable as a deduction to
        a taxpayer in relation to a year of income after the changeover year;
        being an amount to the extent to which it is attributable to eligible
        gold mining expenditure of the taxpayer, then there shall be included
        or allowable only such proportion of that amount as is ascertained in
        accordance with the formula:
Actual deductions
Actual deductions + Notional deductions where:
Actual deductions is the sum of all actual deductions of the taxpayer in
relation to the expenditure;
Notional deductions is the sum of all notional deductions of the taxpayer in
relation to the expenditure. Eligible gold mining expenditure-modified
application of Part IIIA

"159GZZP. (1) Where:

   (a)  a taxpayer owns an asset at the end of 31 December 1990 (in this
        section called the 'changeover time');

   (b)  before that time, the taxpayer incurred eligible gold mining
        expenditure in relation to the asset;

   (c)  the only use of the asset by the taxpayer before the changeover time
        was solely for the purpose of producing exempt income; and

   (d)  the market value of the asset at the changeover time is greater than
        the amount that would be the indexed cost base to the taxpayer in
        respect of the asset if the taxpayer disposed of the asset at that
        time; the following provisions have effect:

   (e)  for the purposes of any application of Part IIIA, the taxpayer shall
        be taken to have disposed of the asset at the changeover time for a
        consideration equal to the amount of the indexed cost base referred to
        in paragraph (d);

   (f)  for the purposes of ascertaining under that Part whether a capital
        gain accrues to the taxpayer in the event of a subsequent disposal of
        the asset by the taxpayer-the taxpayer shall be taken to have
        immediately re-acquired the asset for a consideration equal to the
        market value of the asset at the changeover time;

   (g)  the reference in subsection 160Z (3) to the day on which the asset was
        acquired by the taxpayer shall be taken to be a reference to the day
        on which the asset was actually acquired by the taxpayer.

"(2) If the asset is disposed of within 12 months of the time of its actual
acquisition by the taxpayer, subsection (1) of this section has effect as if
the references in that subsection to the indexed cost base to the taxpayer in
respect of the asset were references to the cost base to the taxpayer in
respect of the asset.

"(3) Expressions used in subsections (1) and (2) that are also used in Part
IIIA have the same respective meanings in those subsections as they have in
that Part.

"(4) For the purposes of any application of subsection 160ZK (1):

   (a)  notional deductions shall be taken to be deductions that have been
        allowed in respect of eligible gold mining expenditure; and

   (b)  where an amount is included in, or allowable as a deduction from, the
        assessable income of a taxpayer of a year of income in relation to
        eligible gold mining expenditure under section 122K in its application
        in accordance with section 159GZZO-the amount that would have been
        included in the assessable income or allowable as a deduction under
        section 122K in relation to that expenditure if section 159GZZO were
        disregarded shall instead be taken to have been so included in the
        assessable income or allowable as a deduction. Eligible gold
        exploration or prospecting expenditure-Division 10 applies as if
        incurred on 1 January 1991 etc.

"159GZZQ. Subject to this Subdivision, where a taxpayer incurs or incurred
eligible gold exploration or prospecting expenditure, Division 10 applies to
the expenditure for the changeover year and all subsequent years of income as
if:

   (a)  the expenditure had been incurred on 1 January 1991 instead of when it
        was actually incurred;

   (b)  the mining operations referred to in applying subsection 122J (1) to
        the expenditure were prescribed mining operations; and

   (c)  section 122H did not apply to deemed gold exploration or prospecting
        expenditure. Eligible gold exploration or prospecting expenditure-7
        year limit on deductibility

"159GZZR. (1) Where:

   (a)  an excess amount referred to in subsection 122J (4C) would, apart from
        this subsection, be deemed for the purposes of subsection 122J (1) to
        have been incurred by a taxpayer in a year of income;

   (b)  the excess amount consists wholly or partly of an amount of deemed
        gold exploration or prospecting expenditure; and

   (c)  the year of income begins more than 7 years after the day on which the
        eligible gold exploration or prospecting expenditure that gave rise to
        the deemed gold exploration or prospecting expenditure was incurred;
        the excess amount shall not, to the extent to which it consists of the
        amount of deemed gold exploration or prospecting expenditure, be
        deemed to have been incurred as mentioned in paragraph (a).

"(2) Where:

   (a)  in applying section 122B in relation to a transaction taking place
        during a year of income, paragraph (2) (b) of that section would,
        apart from this subsection, refer to an amount of expenditure of a
        vendor under section 122J that has not been allowed and is not
        allowable as a deduction;

   (b)  the amount of expenditure consists wholly or partly of an amount of
        deemed gold exploration or prospecting expenditure; and

   (c)  the year of income begins more than 7 years after the day on which the
        eligible gold exploration or prospecting expenditure that gave rise to
        the deemed gold exploration or prospecting expenditure was incurred;
        paragraph 122B (2) (b) shall be taken not to refer to the expenditure
        to the extent to which it consists of such an amount of deemed gold
        exploration or prospecting expenditure. Eligible gold exploration or
        prospecting expenditure-effect of application of paragraph 23 (pa)
        before the changeover year

"159GZZS. (1) Where:

   (a)  an amount of income derived by a taxpayer before the changeover year
        from the sale, transfer or assignment of rights to mine on any mining
        tenement is or has been exempt from income tax in a year of income (in
        this subsection called the 'year of sale') by virtue of paragraph 23
        (pa);

   (b)  the whole or part (which whole or part is in this subsection called
        the 'unapplied exempt income') of that amount has not been applied
        under subsection 122J (4E) (in any application apart from this
        Subdivision); and

   (c)  any amounts of eligible gold exploration or prospecting expenditure
        incurred by the taxpayer in relation to that tenement would, apart
        from this subsection, be taken by section 159GZZQ to be incurred on 1
        January 1991; the following provisions have effect:

   (d)  section 159GZZQ does not operate so as to require the taxpayer to be
        taken to have incurred any part of those amounts of eligible gold
        exploration or prospecting expenditure that does not exceed the
        unapplied exempt income;

   (e)  subsection 122J (4E) does not apply to any amounts of deemed gold
        exploration or prospecting expenditure incurred by the taxpayer in
        relation to the tenement;

   (f)  for the purposes of subsection (2) of this section, the amounts of
        eligible gold exploration or prospecting expenditure shall be taken to
        be reduced in equal proportions by the application of paragraph (d) of
        this subsection.

"(2) Where:

   (a)  the whole or a part of an amount of eligible gold exploration or
        prospecting expenditure incurred by a taxpayer is specified in a
        notice or notices under subsection 159GZZU (3); and

   (b)  if no such amount or amounts had been specified, the amount of the
        eligible gold exploration or prospecting expenditure that the taxpayer
        is taken to have incurred under section 159GZZQ would have been
        reduced by a proportion under paragraph (1) (f) of this section; the
        following provisions have effect:

   (c)  for the purposes of section 159GZZQ, the amount of eligible gold
        exploration or prospecting expenditure not specified in the notice or
        notices shall be taken to be reduced by that proportion;

   (d)  for the purposes of subsection 159GZZU (3), the amount specified in
        the notice or notices shall be taken to be reduced by that proportion.
        Eligible gold exploration or prospecting expenditure-modified
        application of sections 80 and 80G

"159GZZT. (1) Where a loss referred to in paragraph 80G (6) (a) is
attributable in whole or part to an amount of deemed gold exploration or
prospecting expenditure, the loss shall not, to the extent that it is so
attributable, be taken into account for the purposes of that paragraph unless
the loss company referred to in subsection 80G (6) was, for the purposes of
section 80G, a group company in relation to the income company referred to in
subsection 80G (6) in relation to:

   (a)  the year of income in which the eligible gold exploration or
        prospecting expenditure that give rise to the deemed gold exploration
        or prospecting expenditure was incurred; and

   (b)  each subsequent year of income before the loss year referred to in
        that subsection.

"(2) For the purposes of the application of subsection 80 (3) in relation to
the changeover year and any preceding year of income, any eligible gold
exploration or prospecting expenditure incurred in deriving the exempt income
referred to in that subsection shall be disregarded. Eligible gold mining and
eligible gold exploration or prospecting expenditure-effect of certain
transfers of mining rights etc.

"159GZZU. (1) This section applies to an acquisition by a taxpayer (in this
section called the 'purchaser') from another taxpayer (in this section called
the 'vendor') of a mining or prospecting right, where the acquisition is for
the purpose of carrying on, or of exploration or prospecting for minerals
obtainable by, prescribed mining operations or what would, if paragraph 23 (o)
and section 159GZZV had not been enacted, be prescribed mining operations.

"(2) Where:

   (a)  this section applies to the acquisition of a mining or prospecting
        right; (b) the acquisition occurs or occurred during or before the
        changeover year of the vendor; and

   (c)  before the acquisition, the vendor incurred (including by virtue of a
        previous application of this section in relation to another
        acquisition) eligible gold mining expenditure, to the extent that it
        was not on plant, in relation to the area that is the subject of the
        right; then, for the purposes of the application of Division 10 in
        accordance with this Subdivision, the purchaser, instead of the
        vendor, shall be taken to have incurred the expenditure.

"(3) Where:

   (a)  this section applies to the acquisition of a mining or prospecting
        right; (b) the acquisition occurs or occurred before 1 January 1991;
        and

   (c)  before the acquisition, the vendor incurred eligible gold exploration
        or prospecting expenditure, to the extent that it was not on plant in
        use by the vendor at the date of the acquisition; the following
        provisions have effect:

   (d)  the vendor and the purchaser may, in accordance with subsection (4),
        give notice to the Commissioner that they have agreed to the
        application of this subsection in relation to an amount specified in
        the notice, being the whole or part of the eligible gold exploration
        or prospecting expenditure;

   (e)  where such notice is given:

        (i)    the amount specified in the notice shall, for the purposes of
               the application of Division 10 in accordance with this
               Subdivision, be taken to be expenditure incurred by the
               purchaser in acquiring the mining or prospecting right
               concerned from the vendor and be taken to have been specified
               in a notice under section 122B duly given to the Commissioner
               by the vendor and the purchaser; and

        (ii)   the amount specified in the notice shall not be taken into
               account as eligible gold exploration or prospecting expenditure
               of the vendor for the purposes of section 159GZZQ or of
               applying this subsection to any later acquisition of a mining
               or prospecting right from the vendor.

"(4) A notice under subsection (3) shall:

   (a)  be in writing signed by or on behalf of the vendor and the purchaser;
        and (b) be lodged with the Commissioner not later than:

        (i)    if the acquisition occurred before the commencement of this
               section-12 months after the commencement of this section; or

        (ii)   in any other case-2 months after the end of the year of income
               of the purchaser in which the acquisition occurs;
or within such further time as the Commissioner allows. Removal of paragraph
23 (o) exemption not to create actual pre-1991 Division 10 deductions

"159GZZV. It shall be assumed for the purposes of Division 10, in its
application apart from this Subdivision in relation to expenditure incurred
before 1 January 1991, that paragraph 23 (o) applies to income derived on or
after that day.

"Subdivision C-Division 10AAA and related provisions Interpretation

"159GZZW. In this Subdivision:
'actual deduction', in relation to the changeover year or a subsequent year of
income of a taxpayer, in relation to an amount of eligible gold transport
expenditure of the taxpayer, means the deduction actually allowed or allowable
for the year in relation to the expenditure under Division 10AAA (other than
section 123C) in its application in accordance with this Subdivision;
'changeover year', in relation to a taxpayer, means the year of income of the
taxpayer in which 1 January 1991 occurs;
'eligible gold transport expenditure', in relation to a taxpayer, means
expenditure that:

   (a)  is or was incurred by the taxpayer before 1 January 1991; and

   (b)  is not expenditure of the taxpayer to which Division 10AAA applies but
        would be expenditure of the taxpayer to which that Division applies if
        paragraph 23 (o) or section 159GZZZB had not been enacted;
'notional deduction', in relation to the changeover year or a prior year of
income of a taxpayer, in relation to an amount of eligible gold transport
expenditure of the taxpayer, means:

   (a)  in the case of a year of income before the changeover year-the
        deduction that would be allowable to the taxpayer in respect of the
        expenditure for the year of income if paragraph 23 (o) and sections
        123BA, 123BB and 159GZZZB had not been enacted; and

   (b)  in the case of the changeover year-a proportion of the deduction that,
        apart from section 159GZZY, would be allowable to the taxpayer in
        respect of the expenditure for the changeover year, being a proportion
        ascertained in accordance with the formula:
Pre-1 January part
------------------------
Post-expenditure part
where:
Pre-1 January part means:

        (i)    if the expenditure is incurred before the changeover year-the
               number of days in the part of the changeover year ending at the
               end of 31 December 1990; or

        (ii)   if the expenditure is incurred in the changeover year-the
               number of days in the period from the beginning of the day on
               which the expenditure is incurred until the end of 31 December
               1990;
Post-expenditure part means:

        (iii)  if the expenditure is incurred before the changeover year-the
               number of days in the changeover year; or

        (iv)   if the expenditure is incurred in the changeover year-the
               number of days in the period from the beginning of the day on
               which the expenditure is incurred until the end of the
               changeover year.

"159GZZX. Subject to this Subdivision, where a taxpayer incurs or incurred
eligible gold transport expenditure, Division 10AAA applies to the expenditure
for the changeover year and all subsequent years of income as if paragraph 23
(o) and sections 123BA, 123BB and 159GZZZB had not been enacted. Proportionate
deduction for changeover year

"159GZZY. A taxpayer is entitled under Division 10AAA, in its application in
accordance with this Subdivision, to only a proportion of any deduction that,
apart from this section, would be allowable to the taxpayer for the changeover
year in respect of an amount of eligible gold transport expenditure incurred
by the taxpayer, being a proportion ascertained in accordance with the
formula:
Post-31 December part
------------------------
Post-expenditure part where:
Post-31 December part means the number of days in the part of the changeover
year occurring after 31 December 1990;
Post-expenditure part means:

   (a)  if the expenditure is incurred before the changeover year-the number
        of days in the changeover year; or

   (b)  if the expenditure is incurred in the changeover year-the number of
        days in the period from the beginning of the day on which the
        expenditure is incurred until the end of the changeover year. Modified
        application of section 123C

"159GZZZ. Where, apart from this section:

   (a)  subsection 123C (2), in its application in accordance with this
        Division, would require an amount to be included in the assessable
        income of a taxpayer of a year of income after the changeover year; or

   (b)  subsection 123C (3), in its application in accordance with this
        Division, would require an amount to be allowable as a deduction to a
        taxpayer in relation to a year of income after the changeover year;
        being an amount to the extent to which it is attributable to eligible
        gold transport expenditure of the taxpayer, then there shall be
        included or allowable only such proportion of that amount as is
        ascertained in accordance with the formula:
Actual deductions
------------------------
Actual deductions + Notional deductions where:
Actual deductions is the sum of all actual deductions of the taxpayer in
relation to the expenditure;
Notional deductions is the sum of all notional deductions of the taxpayer in
relation to the expenditure. Modified application of Part IIIA

"159GZZZA. (1) Where:

   (a)  a taxpayer owns an asset at the end of 31 December 1990 (in this
        section called the 'changeover time');

   (b)  before that time, the taxpayer incurred eligible gold transport
        expenditure in relation to the asset;

   (c)  the only use of the asset by the taxpayer before the changeover time
        was solely for the purpose of producing exempt income; and

   (d)  the market value of the asset at the changeover time is greater than
        the amount that would be the indexed cost base to the taxpayer in
        respect of the asset if the taxpayer disposed of the asset at that
        time; the following provisions have effect:

   (e)  for the purposes of any application of Part IIIA, the taxpayer shall
        be taken to have disposed of the asset at the changeover time for a
        consideration equal to the amount of the indexed cost base referred to
        in paragraph (d);

   (f)  for the purposes of ascertaining under that Part whether a capital
        gain accrues to the taxpayer in the event of a subsequent disposal of
        the asset by the taxpayer-the taxpayer shall be taken to have
        immediately re-acquired the asset for a consideration equal to the
        market value of the asset at the changeover time;

   (g)  the reference in subsection 160Z (3) to the day on which the asset was
        acquired by the taxpayer shall be taken to be a reference to the day
        on which the asset was actually acquired by the taxpayer.

"(2) If the asset is disposed of within 12 months of the time of its actual
acquisition by the taxpayer, subsection (1) of this section has effect as if
the references in that subsection to the indexed cost base to the taxpayer in
respect of the asset were references to the cost base to the taxpayer in
respect of the asset.

"(3) Expressions used in subsections (1) and (2) that are also used in Part
IIIA have the same respective meanings in those subsections as they have in
that Part.

"(4) For the purposes of any application of subsection 160ZK (1):

   (a)  notional deductions shall be taken to be deductions that have been
        allowed in respect of eligible gold transport expenditure; and

   (b)  where an amount is included in, or allowable as a deduction from, the
        assessable income of a taxpayer of a year of income in relation to
        eligible gold transport expenditure under section 123C in its
        application in accordance with section 159GZZZ-the amount that would
        have been included in the assessable income or allowable as a
        deduction under section 123C in relation to that expenditure if
        section 159GZZZ were disregarded shall instead be taken to have been
        so included in the assessable income or allowable as a deduction.
        Removal of paragraph 23 (o) exemption not to create actual pre-1991
        Division 10AAA deductions

"159GZZZB. It shall be assumed for the purposes of Division 10AAA, in its
application apart from this Subdivision in relation to expenditure incurred
before 1 January 1991, that paragraph 23 (o) applies to income derived on or
after that day.".