INCOME TAX ASSESSMENT AMENDMENT

ACT (No. 3) 1978

No. 171 of 1978

An Act to amend the law relating to income tax.

BE IT ENACTED by the Queen, and the Senate and House of Representatives of the Commonwealth of Australia, as follows:

Short title, &c.

1. (1) This Act may be cited as the Income Tax Assessment Amendment Act (No. 3) 1978.

(2) The Income Tax Assessment Act 1936 is in this Act referred to as the Principal Act.

Commencement

2. This Act shall come into operation on the day on which it receives the Royal Assent.

Losses and outgoings

3. (1) Section 51 of the Principal Act is amended by adding at the end thereof the following sub-section:

“(3) A deduction is not allowable under sub-section (1) in respect of long service leave, annual leave, sick leave or other leave except in respect of an amount paid to the person to whom the leave relates or, where that person is deceased, to a dependant or personal representative of that person and, for the purposes of that sub-section, the amount paid shall be deemed to be a loss or outgoing incurred at the time when the payment is made.”.

(2) The amendment made by sub-section (1) applies to assessments in respect of income of the year of income that commenced on 1 July 1977 and to assessments in respect of income of all subsequent years of income, other than assessments made before 28 September 1978.

(3) It is hereby declared that the amendment made by sub-section (1) is enacted for the avoidance of doubt and, in particular, shall not be taken as implying that a deduction is or was allowable under section 51 of the Income Tax Assessment Act 1936 in an assessment in respect of income of a year of income preceding the year of income that commenced on 1 July 1977 or in an assessment made before 28 September 1978 in respect of income of the year of income that commenced on 1 July 1977 that, if the amendment made by sub-section (1) applied or had applied to the assessment, would not be or would not have been allowable by virtue of that amendment.

Gifts, calls on afforestation shares, pensions, &c.

4. Section 78 of the Principal Act is amended by inserting after sub-paragraph (xlvii) of paragraph (a) of sub-section (1) the following sub-paragraph:

“; (xlviii) The Sir Robert Menzies Memorial Trust,”.