Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Section 70 - 100 (Notional disposal when you stop holding an item as trading stock) of the Income Tax Assessment Act 1997 applies to trading stock that stops being trading stock on hand of an entity on or after 1 July 1997.
Transitional provision if that section affects an assessment for 1996 - 97
(2) The value of trading stock to which subsection (4) of that section applies is to be worked out using the rules in the Income Tax Assessment Act 1936 (and not the rules in Subdivision 70 - C of the Income Tax Assessment Act 1997 ) if:
(a) that section affects an assessment for the 1996 - 97 year of income under the Income Tax Assessment Act 1936 ; and
(b) an election is made under subsection (4) of that section to value trading stock at what would have been its value at the end of an income year ending on the day it became trading stock on hand of the second entity.
Note: Section 70 - 100 of the Income Tax Assessment Act 1997
may affect an assessment for the 1996 - 97 income year if any of the
entities with an interest in the trading stock (either before or after it
becomes trading stock on hand of the second entity) has a 1996 - 97 income
year ending on or after 1 July 1997.