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INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 - SECT 70.55

Cost of live stock acquired by natural increase

             (1)  Section 70-55 of the Income Tax Assessment Act 1997 applies to animals acquired by natural increase in or after the 1997-98 income year.

             (2)  For the purposes of Subdivision 70-C of the Income Tax Assessment Act 1997 , the cost of an animal acquired by natural increase before the 1997-98 income year is the cost price of the animal under former section 34 of the Income Tax Assessment Act 1936 .

             (3)  For the purposes of Subdivision 70-C of the Income Tax Assessment Act 1997 , the cost of an animal acquired by a partnership by natural increase before the 1997-98 income year depends on whether its cost price has been used in working out the share of a partner in the partnership's net income or partnership loss for an earlier income year:

                     (a)  if it has, the cost is that cost price, or the lowest of those cost prices if more than one cost price was used to work out the respective shares of partners;

                     (b)  if it has not, the cost is the minimum cost price prescribed for the purposes of former section 34 of the Income Tax Assessment Act 1936 for that class of animal for the time when the animal was acquired, or the animal's actual cost price if no minimum was prescribed.

Note 1:       Former section 93 of the Income Tax Assessment Act 1936 allowed each partner to choose the cost price of an animal for working out the partner's share of the partnership's net income or partnership loss for income years before the 1997-98 income year.

Note 2:       Former section 34 of the Income Tax Assessment Act 1936 provides for the valuation of live stock acquired by natural increase before the 1997-98 income year.



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