Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 385.120

  (1)   If you make the election in section   385 - 110, then the amount paid or payable for the purchase of each replacement animal you buy in the * disposal year, or in the next 5 income years, is treated as if it were reduced by the * reduction amount.

Meaning of reduction amount

  (2)   The reduction amount is:

  ï‚·   so much of the * tax profit on the disposal or death as is attributable to live stock of the species you are replacing;

divided by:

  ï‚·   the number of animals of that species that you disposed of or that died.

  (3)   However, if:

  (a)   you purchase a replacement animal of a different species from the * live stock it replaces; and

  (b)   you pay substantially more for it than you could have paid for a replacement animal of the same species;

the reduction amount for the animal is any reasonable amount at least equal to the amount worked out under subsection   (2).

Exception to avoid reducing unused tax profit to less than nil

  (4)   However, if applying subsection   (1) to a particular purchase would reduce the * unused tax profit on the disposal or death to less than nil, instead reduce the amount paid or payable for the purchase of each replacement animal in that purchase by:

ï‚·   the * unused tax profit on the disposal or death;

divided by:

ï‚·   the number of animals in the purchase.