Document ID: chunk:federal_register_of_legislation:C2004A04362:front:0:p8
Version: federal_register_of_legislation:C2004A04362
Segment Type: other
Provision Reference: 
Character Range: 18664–21557

For 'contracts to which this section applies', see subsection (6).

"(2) The Minister may, by written determination, set guidelines for the exercise by the Corporation of its power under subsection (1) and must give the Corporation a copy of each determination made.

"(3) Without limiting subsection (2), the guidelines may provide that:

    (a)     the Corporation is not to enter into or deal with contracts of a particular kind; or

    (b)     the Corporation is to enter into or deal with contracts of a particular kind only if the contract relates to specified matters.

"(4) The Corporation must not enter into or deal with a contract to which this section applies contrary to any guidelines in force under subsection (2).

"(5) A contract is taken to be entered into or dealt with for hedging purposes only if the contract is entered into or dealt with for the purposes of:

  (a) reducing the risk of adverse variations in:

         (i) the costs of a borrowing, or a proposed borrowing, of money by the Corporation; or

         (ii) the revenue obtainable by the Corporation from the investment of money of the Corporation; or

         (iii) the cost of commodities purchased by the Corporation; or

  (b) maintaining the value of:

       (i) investments made by the Corporation; or

         (ii) property used as security for a borrowing, or a proposed borrowing by the Corporation.

  "(6) This section applies to contracts of the following kinds:

  (a)     currency contracts;

  (b)     interest rate contracts;

  (c)     futures contracts;

  (d)     contracts relating to:

       (i) dealings known as currency swaps; or

      (ii) dealings known as interest rate swaps; or

      (iii) dealings known as commodity swaps;

    (e)     contracts relating to two or more of the dealings referred to in paragraph (d);

  (f)      options (including futures options);

  (g)     contracts of a kind approved in writing by the Minister.".

  23. After Part VI of the Principal Act the following Part is inserted:

"PART VIA—PROVISIONS RELATING TO THE CORPORATION'S LIABILITY TO PAY INCOME TAX

Interpretation

  "57A. In this Part:

'Assessment Act' means the Income Tax Assessment Act 1936.

Commencement of the Corporation's liability to pay income tax

"57B. Income derived by the Corporation in a year of income commencing before 1 July 1991 is exempt income for the purposes of the Assessment Act.

Accelerated depreciation not available for income tax purposes

"57C. Section 57AL of the Assessment Act, as in force immediately after the commencement of section 38 of the Taxation Laws Amendment Act (No. 4) 1988, does not apply in relation to any unit of property of the Corporation.

Capital gains tax

  "57D.(1) If:

    (a)     the Corporation owned an asset at the end of 30 June 1991 ('the changeover time'); and

    (b)     the market value of the asset at