Document ID: chunk:federal_register_of_legislation:C2025C00014:clause:2d_8:p1
Version: federal_register_of_legislation:C2025C00014
Segment Type: clause
Provision Reference: sch 2D cl 8 (pt 1/4)
Character Range: 2202935–2205733

8                                                            Scientific research                                                                                                               Subsection 73A(4)                             Section 73A

Note: Item 7 of the table is expanded by section 355‑340 of the Income Tax (Transitional Provisions) Act 1997.

Subdivision 57‑L—Trading stock

57‑115  Modification of trading stock provisions
 (1) For the purposes of applying Division 70 of the Income Tax Assessment Act 1997 in relation to the transition year, the only trading stock of the transition taxpayer that is to be taken into account under section 70‑35 of that Act as being on hand at the beginning of the transition year is such trading stock as was on hand at the transition time.
 (2) For the purpose of working out the value at which the trading stock is to be taken into account, the year of income preceding the transition year is taken to have ended immediately before the transition time.
Note: The value of trading stock on hand at the beginning of the transition year will, under section 70‑40 of the Income Tax Assessment Act 1997, be the same as at the end of the preceding year of income.
 (3) If:
 (a) the basis of valuation of the trading stock at the end of the transition year is cost; and
 (b) the basis of valuation at the beginning of the transition year is different;
then, for the purposes of the valuation at the end of the transition year, the cost of the trading stock for the purposes of Division 70 of the Income Tax Assessment Act 1997 is taken to be equal to the value at which it was taken into account at the beginning of the transition year.

Subdivision 57‑M—Imputation

57‑120  Cancellation of franking surplus, credit or debit

Cancellation of surplus
 (1) Subject to subsections (3) and (4), if, immediately before the transition time, the transition taxpayer or a subsidiary (see section 57‑125) of the transition taxpayer has a franking surplus, then the surplus is reduced to nil at the transition time.

Cancellation of credit/debit
 (2) Subject to subsections (3) and (4), if:
 (a) at any time after the transition time, there arises a franking credit or a franking debit of the transition taxpayer or of a subsidiary of the transition taxpayer; and
 (b) the franking credit or franking debit is to any extent attributable to a period, or to an event taking place, before the transition time;
the franking credit or franking debit is to that extent taken not to have arisen.

Cases where subsections (1) and (2) do not apply to the transition taxpayer
 (3) If:
 (a) one or more franking debits of the transition taxpayer arise after the transition time; and
 (b) any of the debits is to an extent (the amount of which is the pre‑transition time