Telecommunications and Postal Services (Transitional Provisions and Consequential Amendments) Act 1989
In ForceCTH
Jurisdiction
Commonwealth
Act Number
63 of 1989
Collection
act
Plain English Summary
4/10 complexity
This Act provides transitional and consequential rules that take effect when new postal and telecommunications corporate laws commence. It fixes tax treatment (state levies, federal income timing, trading‑stock and capital‑gains bookkeeping), preserves existing liabilities and unclaimed funds handling, and protects employee status so Australia Post and Telecom move from old statutory regimes to new corporate forms without legal or tax gaps.
It matters because it removes uncertain tax exposures and ensures administrative continuity at the changeover.
This Act (Telecommunications and Postal Services (Transitional Provisions and Consequential Amendments) Act 1989, as set out in the supplied text) creates time‑limited and transitional rules to carry existing legal and tax positions across to two newly enacted Commonwealth statutes: the Australian Postal Corporation Act 1989 (the “new Act” for Australia Post) and the Australian Telecommunications Corporation Act 1989 (the “new Act” for Telecom). The Act does four mechanical things:
It fixes commencement mechanics for itself, providing that sections 1 and 2 come into force on Royal Assent and that other provisions commence by proclamation or automatically if not proclaimed within six months (s 2(1)-(2), (4)).
It defines key terms for the transitional Parts for Australia Post (Pt 9, Div 1) and Telecom (Pt 10, Div 1): in each Part the term commencing day means the day on which the relevant new Act commences; new Act and previous Act are respectively the successor and repealed Commonwealth Acts (s 60; s 76).
It prevents certain Stamp Duty and similar State/Territory taxes applying to Australia Post in relation to property, transactions and securities that were acquired, constructed, entered into, issued or otherwise effected before the commencing day (s 62-64). Those exemptions explicitly include motor vehicle registration for vehicles acquired before the commencing day (s 62(2)).
It provides a package of income‑tax and capital gains transitional rules for Australia Post: income derived in a year commencing before 1 July 1990 is declared exempt income (s 65); trading stock valuation options are preserved or may be exercised in a narrow window in connection with the year commencing 1 July 1990 (s 66); accelerated depreciation under s 57AL of the Income Tax Assessment Act 1936 is disapplied in relation to Australia Post property (s 67); and specific deemed disposal/reacquisition rules apply at the changeover time of 30 June 1990 for the purposes of Part IIIA (capital gains tax) of the Income Tax Assessment Act 1936 (s 68).
Current sections
Direct links to the current provisions in Telecommunications and Postal Services (Transitional Provisions and Consequential Amendments) Act 1989.
24
Part 1
Preliminary
Part 1—Preliminary
1
Short title
1 Short title
This Act may be cited as the Telecommunications and Postal Services (Transitional Provisions and Consequential Amendments) Act 1989.
2
Commencement
2 Commencement
(1) Subject to this section, this Act commences on a day or days to be fixed by Proclamation.
(2) Sections 1 and 2 commence on the day on which this Act receives the Royal Assent.
(4) If a provision of this Act (other than section 1 or 2) does not commence under subsection (1) within the period of 6 months beginning on the day on which this Act receives the Royal Assent, it commences on the first day after the end of that period.
Part 9
Transitional provisions, amendments and repeals relating to Australia Post
An Act to enact certain transitional provisions, make certain amendments, and effect certain repeals, in consequence of the enactment of the Telecommunications Act 1989, the Australian Postal Corporation Act 1989 and the Australian Telecommunications Corporation Act 1989, and for other purposes
Part 1—Preliminary
1 Short title
This Act may be cited as the Telecommunications and Postal Services (Transitional Provisions and Consequential Amendments) Act 1989.
2 Commencement
(1) Subject to this section, this Act commences on a day or days to be fixed by Proclamation.
(2) Sections 1 and 2 commence on the day on which this Act receives the Royal Assent.
(4) If a provision of this Act (other than section 1 or 2) does not commence under subsection (1) within the period of 6 months beginning on the day on which this Act receives the Royal Assent, it commences on the first day after the end of that period.
Part 9—Transitional provisions, amendments and repeals relating to Australia Post
Division 1—Interpretation
60 Interpretation—definitions
In this Part:
commencing day means the day on which the new Act commences.
new Act means the Australian Postal Corporation Act 1989.
previous Act means the Postal Services Act 1975.
61 Interpretation—expressions used in new Act
Unless the contrary intention appears, expressions used in this Part, and in the new Act, have the same respective meanings as in that Act.
Division 2—Taxation matters
62 Stamp duty not payable in relation to certain property etc.
(1) Stamp duty or similar tax is not payable by Australia Post under a law of a State or Territory in relation to property:
(a) acquired by Australia Post before the commencing day; or
(b) constructed by Australia Post before the commencing day.
(2) Without limiting subsection (1), stamp duty or similar tax is not payable under a law of a State or Territory on the registration under a law of the State or Territory of a motor vehicle acquired by Australia Post before the commencing day.
63 Stamp duty not payable in relation to certain transactions
Stamp duty or similar tax is not payable by Australia Post under a law of a State or Territory in relation to a transaction entered into by it before the commencing day.
64 Stamp duty not payable in relation to certain securities etc.
Stamp duty or any similar tax is not payable under a law of a State or Territory in relation to:
(a) a security issued by Australia Post before the commencing day;
(b) the issue, redemption, transfer, sale or purchase of such a security (other than a transaction entered into without consideration or for an inadequate consideration); or
(b) any document executed by or on behalf of Australia Post, or any transaction, in relation to money borrowed by Australia Post before the commencing day.
65 Commencement of Australia Post’s liability to pay income tax
Income derived by Australia Post in a year of income commencing before 1 July 1990 is exempt income for the purposes of the Income Tax Assessment Act 1936.
66 Value of trading stock for income tax purposes
(1) For the purpose of ascertaining under Subdivision B of Division 2 of Part III of the Income Tax Assessment Act 1936 the value to be taken into account at the beginning of the year of income commencing on 1 July 1990 in relation to Australia Post’s trading stock on hand at that time, Australia Post may, in accordance with subsection (2), exercise any option, and give any notice, in relation to the value of its trading stock on hand at the end of the preceding year of income.
(2) The option or notice:
(a) shall be exercised or given in writing to the Commissioner of Taxation; and
(b) shall be lodged with the Commissioner of Taxation on or before the day of lodgment of Australia Post’s return of income for the year of income commencing on 1 July 1990, or before such later day as the Commissioner of Taxation allows.
(3) If Australia Post does not exercise an option under subsection (1) in relation to particular trading stock, the value to be taken into account in accordance with the subsection in relation to that trading stock shall be the cost price.
(4) If Australia Post, under Subdivision B of Division 2 of Part III of the Income Tax Assessment Act 1936, adopts cost price as the basis of valuation in relation to any of its trading stock on hand at the end of the year of income commencing on 1 July 1990 that was on hand at the end of the preceding year of income, the cost price of that trading stock shall be taken to be equal to the value at which the trading stock was taken into account in accordance with subsection (1).
67 Accelerated depreciation not available for income tax purposes
Section 57AL of the Income Tax Assessment Act 1936, 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 Australia Post.
68 Transitional provisions for capital gains tax
(1) Where:
(a) Australia Post owns an asset at the end of 30 June 1990 (in this subsection called the “changeover time”); and
(b) the market value of the asset at the changeover time is greater than the amount that would be the indexed cost base to Australia Post in relation to the asset if Australia Post disposed of the asset at that time;
the following provisions have effect for the purpose of ascertaining under Part IIIA of the Income Tax Assessment Act 1936 whether a capital gain accrues in the event of a subsequent disposal of the asset by it:
(c) Australia Post shall be taken to have disposed of the asset at the changeover time for a consideration equal to the amount of that indexed cost base;
(d) Australia Post shall be taken to have immediately re-acquired the asset for a consideration equal to the market value of the asset at the changeover time;
(e) the reference in subsection 160Z(3) of the Income Tax Assessment Act 1936 to the day on which the asset was acquired by the taxpayer shall be taken to be a reference to the day on which the asset was actually acquired by Australia Post.
(2) If the asset is disposed of within 12 months of its actual acquisition by Australia Post, subsection (1) has effect as if the references in that subsection to the indexed cost base to Australia Post in relation to the asset were references to the cost base to Australia Post in relation to the asset.
(3) Where:
(a) Australia Post owns an asset at the end of 30 June 1990 (in this subsection called the “changeover time”); and
(b) the market value of the asset at the changeover time is less than the amount that would be the reduced cost base to Australia Post in relation to the asset if Australia Post disposed of the asset at that time;
the following provisions have effect for the purpose of ascertaining under Part IIIA of the Income Tax Assessment Act 1936 whether Australia Post incurred a capital loss in the event of a subsequent disposal of the asset by it:
(c) Australia Post shall be taken to have disposed of the asset at the changeover time for a consideration equal to the amount of that reduced cost base;
(d) Australia Post shall be taken to have immediately re-acquired the asset for a consideration equal to the market value of the asset at the changeover time.
(4) Expressions used in this section, and in Part IIIA of the Income Tax Assessment Act 1936, have the same respective meanings as in that Part.
Division 3—Non-taxation matters
69 Certain existing liabilities to the Commonwealth
Subject to any regulations made under the new Act, section 74 of the previous Act, as in force immediately before the commencement of this Part, continues to have effect as if the previous Act had not been repealed.
72 Employment of staff members to continue
Each person who, immediately before the commencing day, was an employee of Australia Post continues to be employed by it as if the person had been engaged under section 89 of the new Act.
73 Unclaimed amounts
(1) Amounts paid into the Unclaimed Moneys Fund kept by Australia Post under section 107 of the previous Act shall be dealt with as if they had been paid into the Unclaimed Money Fund kept under section 98 of the new Act.
(2) Amounts paid into the Consolidated Revenue Fund under section 107 of the previous Act shall be dealt with as if that Act had not been repealed.
Part 10—Transitional provisions, amendments and repeals relating to Telecom
Division 1—Interpretation
76 Interpretation—definitions
In this Part:
commencing day means the day on which the new Act commences.
new Act means the Australian Telecommunications Corporation Act 1989.
previous Act means the Telecommunications Act 1975.
77 Interpretation—expressions used in new Act
Unless the contrary intention appears, expressions used in this Part, and in the new Act, have the same respective meanings as in that Act.
Division 3—Non-taxation matters
85 Certain existing liabilities to the Commonwealth
Subject to any regulations made under the new Act, section 71 of the old Act, as in force immediately before the commencement of this Part, continues to have effect as if the previous Act had not been repealed.
88 Employment of staff members to continue
Each person who, immediately before the commencing day, was an employee of Telecom continues to be employed by it as if the person had been engaged under section 85 of the new Act.
Division 1
Interpretation
An Act to enact certain transitional provisions, make certain amendments, and effect certain repeals, in consequence of the enactment of the Telecommunications Act 1989, the Australian Postal Corporation Act 1989 and the Australian Telecommunications Corporation Act 1989, and for other purposes
Part 1—Preliminary
1 Short title
This Act may be cited as the Telecommunications and Postal Services (Transitional Provisions and Consequential Amendments) Act 1989.
2 Commencement
(1) Subject to this section, this Act commences on a day or days to be fixed by Proclamation.
(2) Sections 1 and 2 commence on the day on which this Act receives the Royal Assent.
(4) If a provision of this Act (other than section 1 or 2) does not commence under subsection (1) within the period of 6 months beginning on the day on which this Act receives the Royal Assent, it commences on the first day after the end of that period.
Part 9—Transitional provisions, amendments and repeals relating to Australia Post
Division 1—Interpretation
60 Interpretation—definitions
In this Part:
commencing day means the day on which the new Act commences.
new Act means the Australian Postal Corporation Act 1989.
previous Act means the Postal Services Act 1975.
61 Interpretation—expressions used in new Act
Unless the contrary intention appears, expressions used in this Part, and in the new Act, have the same respective meanings as in that Act.
Division 2—Taxation matters
62 Stamp duty not payable in relation to certain property etc.
(1) Stamp duty or similar tax is not payable by Australia Post under a law of a State or Territory in relation to property:
(a) acquired by Australia Post before the commencing day; or
(b) constructed by Australia Post before the commencing day.
(2) Without limiting subsection (1), stamp duty or similar tax is not payable under a law of a State or Territory on the registration under a law of the State or Territory of a motor vehicle acquired by Australia Post before the commencing day.
63 Stamp duty not payable in relation to certain transactions
Stamp duty or similar tax is not payable by Australia Post under a law of a State or Territory in relation to a transaction entered into by it before the commencing day.
64 Stamp duty not payable in relation to certain securities etc.
Stamp duty or any similar tax is not payable under a law of a State or Territory in relation to:
(a) a security issued by Australia Post before the commencing day;
(b) the issue, redemption, transfer, sale or purchase of such a security (other than a transaction entered into without consideration or for an inadequate consideration); or
(b) any document executed by or on behalf of Australia Post, or any transaction, in relation to money borrowed by Australia Post before the commencing day.
65 Commencement of Australia Post’s liability to pay income tax
Income derived by Australia Post in a year of income commencing before 1 July 1990 is exempt income for the purposes of the Income Tax Assessment Act 1936.
66 Value of trading stock for income tax purposes
(1) For the purpose of ascertaining under Subdivision B of Division 2 of Part III of the Income Tax Assessment Act 1936 the value to be taken into account at the beginning of the year of income commencing on 1 July 1990 in relation to Australia Post’s trading stock on hand at that time, Australia Post may, in accordance with subsection (2), exercise any option, and give any notice, in relation to the value of its trading stock on hand at the end of the preceding year of income.
(2) The option or notice:
(a) shall be exercised or given in writing to the Commissioner of Taxation; and
(b) shall be lodged with the Commissioner of Taxation on or before the day of lodgment of Australia Post’s return of income for the year of income commencing on 1 July 1990, or before such later day as the Commissioner of Taxation allows.
(3) If Australia Post does not exercise an option under subsection (1) in relation to particular trading stock, the value to be taken into account in accordance with the subsection in relation to that trading stock shall be the cost price.
(4) If Australia Post, under Subdivision B of Division 2 of Part III of the Income Tax Assessment Act 1936, adopts cost price as the basis of valuation in relation to any of its trading stock on hand at the end of the year of income commencing on 1 July 1990 that was on hand at the end of the preceding year of income, the cost price of that trading stock shall be taken to be equal to the value at which the trading stock was taken into account in accordance with subsection (1).
67 Accelerated depreciation not available for income tax purposes
Section 57AL of the Income Tax Assessment Act 1936, 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 Australia Post.
68 Transitional provisions for capital gains tax
(1) Where:
(a) Australia Post owns an asset at the end of 30 June 1990 (in this subsection called the “changeover time”); and
(b) the market value of the asset at the changeover time is greater than the amount that would be the indexed cost base to Australia Post in relation to the asset if Australia Post disposed of the asset at that time;
the following provisions have effect for the purpose of ascertaining under Part IIIA of the Income Tax Assessment Act 1936 whether a capital gain accrues in the event of a subsequent disposal of the asset by it:
(c) Australia Post shall be taken to have disposed of the asset at the changeover time for a consideration equal to the amount of that indexed cost base;
(d) Australia Post shall be taken to have immediately re-acquired the asset for a consideration equal to the market value of the asset at the changeover time;
(e) the reference in subsection 160Z(3) of the Income Tax Assessment Act 1936 to the day on which the asset was acquired by the taxpayer shall be taken to be a reference to the day on which the asset was actually acquired by Australia Post.
(2) If the asset is disposed of within 12 months of its actual acquisition by Australia Post, subsection (1) has effect as if the references in that subsection to the indexed cost base to Australia Post in relation to the asset were references to the cost base to Australia Post in relation to the asset.
(3) Where:
(a) Australia Post owns an asset at the end of 30 June 1990 (in this subsection called the “changeover time”); and
(b) the market value of the asset at the changeover time is less than the amount that would be the reduced cost base to Australia Post in relation to the asset if Australia Post disposed of the asset at that time;
the following provisions have effect for the purpose of ascertaining under Part IIIA of the Income Tax Assessment Act 1936 whether Australia Post incurred a capital loss in the event of a subsequent disposal of the asset by it:
(c) Australia Post shall be taken to have disposed of the asset at the changeover time for a consideration equal to the amount of that reduced cost base;
(d) Australia Post shall be taken to have immediately re-acquired the asset for a consideration equal to the market value of the asset at the changeover time.
(4) Expressions used in this section, and in Part IIIA of the Income Tax Assessment Act 1936, have the same respective meanings as in that Part.
Division 3—Non-taxation matters
69 Certain existing liabilities to the Commonwealth
Subject to any regulations made under the new Act, section 74 of the previous Act, as in force immediately before the commencement of this Part, continues to have effect as if the previous Act had not been repealed.
72 Employment of staff members to continue
Each person who, immediately before the commencing day, was an employee of Australia Post continues to be employed by it as if the person had been engaged under section 89 of the new Act.
73 Unclaimed amounts
(1) Amounts paid into the Unclaimed Moneys Fund kept by Australia Post under section 107 of the previous Act shall be dealt with as if they had been paid into the Unclaimed Money Fund kept under section 98 of the new Act.
(2) Amounts paid into the Consolidated Revenue Fund under section 107 of the previous Act shall be dealt with as if that Act had not been repealed.
Part 10—Transitional provisions, amendments and repeals relating to Telecom
Division 1—Interpretation
76 Interpretation—definitions
In this Part:
commencing day means the day on which the new Act commences.
new Act means the Australian Telecommunications Corporation Act 1989.
previous Act means the Telecommunications Act 1975.
77 Interpretation—expressions used in new Act
Unless the contrary intention appears, expressions used in this Part, and in the new Act, have the same respective meanings as in that Act.
Division 3—Non-taxation matters
85 Certain existing liabilities to the Commonwealth
Subject to any regulations made under the new Act, section 71 of the old Act, as in force immediately before the commencement of this Part, continues to have effect as if the previous Act had not been repealed.
88 Employment of staff members to continue
Each person who, immediately before the commencing day, was an employee of Telecom continues to be employed by it as if the person had been engaged under section 85 of the new Act.
60
Interpretation—definitions
60 Interpretation—definitions
In this Part:
commencing day means the day on which the new Act commences.
new Act means the Australian Postal Corporation Act 1989.
previous Act means the Postal Services Act 1975.
61
Interpretation—expressions used in new Act
61 Interpretation—expressions used in new Act
Unless the contrary intention appears, expressions used in this Part, and in the new Act, have the same respective meanings as in that Act.
Division 2
Taxation matters
An Act to enact certain transitional provisions, make certain amendments, and effect certain repeals, in consequence of the enactment of the Telecommunications Act 1989, the Australian Postal Corporation Act 1989 and the Australian Telecommunications Corporation Act 1989, and for other purposes
Part 1—Preliminary
1 Short title
This Act may be cited as the Telecommunications and Postal Services (Transitional Provisions and Consequential Amendments) Act 1989.
2 Commencement
(1) Subject to this section, this Act commences on a day or days to be fixed by Proclamation.
(2) Sections 1 and 2 commence on the day on which this Act receives the Royal Assent.
(4) If a provision of this Act (other than section 1 or 2) does not commence under subsection (1) within the period of 6 months beginning on the day on which this Act receives the Royal Assent, it commences on the first day after the end of that period.
Part 9—Transitional provisions, amendments and repeals relating to Australia Post
Division 1—Interpretation
60 Interpretation—definitions
In this Part:
commencing day means the day on which the new Act commences.
new Act means the Australian Postal Corporation Act 1989.
previous Act means the Postal Services Act 1975.
61 Interpretation—expressions used in new Act
Unless the contrary intention appears, expressions used in this Part, and in the new Act, have the same respective meanings as in that Act.
Division 2—Taxation matters
62 Stamp duty not payable in relation to certain property etc.
(1) Stamp duty or similar tax is not payable by Australia Post under a law of a State or Territory in relation to property:
(a) acquired by Australia Post before the commencing day; or
(b) constructed by Australia Post before the commencing day.
(2) Without limiting subsection (1), stamp duty or similar tax is not payable under a law of a State or Territory on the registration under a law of the State or Territory of a motor vehicle acquired by Australia Post before the commencing day.
63 Stamp duty not payable in relation to certain transactions
Stamp duty or similar tax is not payable by Australia Post under a law of a State or Territory in relation to a transaction entered into by it before the commencing day.
64 Stamp duty not payable in relation to certain securities etc.
Stamp duty or any similar tax is not payable under a law of a State or Territory in relation to:
(a) a security issued by Australia Post before the commencing day;
(b) the issue, redemption, transfer, sale or purchase of such a security (other than a transaction entered into without consideration or for an inadequate consideration); or
(b) any document executed by or on behalf of Australia Post, or any transaction, in relation to money borrowed by Australia Post before the commencing day.
65 Commencement of Australia Post’s liability to pay income tax
Income derived by Australia Post in a year of income commencing before 1 July 1990 is exempt income for the purposes of the Income Tax Assessment Act 1936.
66 Value of trading stock for income tax purposes
(1) For the purpose of ascertaining under Subdivision B of Division 2 of Part III of the Income Tax Assessment Act 1936 the value to be taken into account at the beginning of the year of income commencing on 1 July 1990 in relation to Australia Post’s trading stock on hand at that time, Australia Post may, in accordance with subsection (2), exercise any option, and give any notice, in relation to the value of its trading stock on hand at the end of the preceding year of income.
(2) The option or notice:
(a) shall be exercised or given in writing to the Commissioner of Taxation; and
(b) shall be lodged with the Commissioner of Taxation on or before the day of lodgment of Australia Post’s return of income for the year of income commencing on 1 July 1990, or before such later day as the Commissioner of Taxation allows.
(3) If Australia Post does not exercise an option under subsection (1) in relation to particular trading stock, the value to be taken into account in accordance with the subsection in relation to that trading stock shall be the cost price.
(4) If Australia Post, under Subdivision B of Division 2 of Part III of the Income Tax Assessment Act 1936, adopts cost price as the basis of valuation in relation to any of its trading stock on hand at the end of the year of income commencing on 1 July 1990 that was on hand at the end of the preceding year of income, the cost price of that trading stock shall be taken to be equal to the value at which the trading stock was taken into account in accordance with subsection (1).
67 Accelerated depreciation not available for income tax purposes
Section 57AL of the Income Tax Assessment Act 1936, 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 Australia Post.
68 Transitional provisions for capital gains tax
(1) Where:
(a) Australia Post owns an asset at the end of 30 June 1990 (in this subsection called the “changeover time”); and
(b) the market value of the asset at the changeover time is greater than the amount that would be the indexed cost base to Australia Post in relation to the asset if Australia Post disposed of the asset at that time;
the following provisions have effect for the purpose of ascertaining under Part IIIA of the Income Tax Assessment Act 1936 whether a capital gain accrues in the event of a subsequent disposal of the asset by it:
(c) Australia Post shall be taken to have disposed of the asset at the changeover time for a consideration equal to the amount of that indexed cost base;
(d) Australia Post shall be taken to have immediately re-acquired the asset for a consideration equal to the market value of the asset at the changeover time;
(e) the reference in subsection 160Z(3) of the Income Tax Assessment Act 1936 to the day on which the asset was acquired by the taxpayer shall be taken to be a reference to the day on which the asset was actually acquired by Australia Post.
(2) If the asset is disposed of within 12 months of its actual acquisition by Australia Post, subsection (1) has effect as if the references in that subsection to the indexed cost base to Australia Post in relation to the asset were references to the cost base to Australia Post in relation to the asset.
(3) Where:
(a) Australia Post owns an asset at the end of 30 June 1990 (in this subsection called the “changeover time”); and
(b) the market value of the asset at the changeover time is less than the amount that would be the reduced cost base to Australia Post in relation to the asset if Australia Post disposed of the asset at that time;
the following provisions have effect for the purpose of ascertaining under Part IIIA of the Income Tax Assessment Act 1936 whether Australia Post incurred a capital loss in the event of a subsequent disposal of the asset by it:
(c) Australia Post shall be taken to have disposed of the asset at the changeover time for a consideration equal to the amount of that reduced cost base;
(d) Australia Post shall be taken to have immediately re-acquired the asset for a consideration equal to the market value of the asset at the changeover time.
(4) Expressions used in this section, and in Part IIIA of the Income Tax Assessment Act 1936, have the same respective meanings as in that Part.
Division 3—Non-taxation matters
69 Certain existing liabilities to the Commonwealth
Subject to any regulations made under the new Act, section 74 of the previous Act, as in force immediately before the commencement of this Part, continues to have effect as if the previous Act had not been repealed.
72 Employment of staff members to continue
Each person who, immediately before the commencing day, was an employee of Australia Post continues to be employed by it as if the person had been engaged under section 89 of the new Act.
73 Unclaimed amounts
(1) Amounts paid into the Unclaimed Moneys Fund kept by Australia Post under section 107 of the previous Act shall be dealt with as if they had been paid into the Unclaimed Money Fund kept under section 98 of the new Act.
(2) Amounts paid into the Consolidated Revenue Fund under section 107 of the previous Act shall be dealt with as if that Act had not been repealed.
Part 10—Transitional provisions, amendments and repeals relating to Telecom
Division 1—Interpretation
76 Interpretation—definitions
In this Part:
commencing day means the day on which the new Act commences.
new Act means the Australian Telecommunications Corporation Act 1989.
previous Act means the Telecommunications Act 1975.
77 Interpretation—expressions used in new Act
Unless the contrary intention appears, expressions used in this Part, and in the new Act, have the same respective meanings as in that Act.
Division 3—Non-taxation matters
85 Certain existing liabilities to the Commonwealth
Subject to any regulations made under the new Act, section 71 of the old Act, as in force immediately before the commencement of this Part, continues to have effect as if the previous Act had not been repealed.
88 Employment of staff members to continue
Each person who, immediately before the commencing day, was an employee of Telecom continues to be employed by it as if the person had been engaged under section 85 of the new Act.
62
Stamp duty not payable in relation to certain property etc.
62 Stamp duty not payable in relation to certain property etc.
(1) Stamp duty or similar tax is not payable by Australia Post under a law of a State or Territory in relation to property:
(a) acquired by Australia Post before the commencing day; or
(b) constructed by Australia Post before the commencing day.
(2) Without limiting subsection (1), stamp duty or similar tax is not payable under a law of a State or Territory on the registration under a law of the State or Territory of a motor vehicle acquired by Australia Post before the commencing day.
63
Stamp duty not payable in relation to certain transactions
63 Stamp duty not payable in relation to certain transactions
Stamp duty or similar tax is not payable by Australia Post under a law of a State or Territory in relation to a transaction entered into by it before the commencing day.
64
Stamp duty not payable in relation to certain securities etc.
64 Stamp duty not payable in relation to certain securities etc.
Stamp duty or any similar tax is not payable under a law of a State or Territory in relation to:
(a) a security issued by Australia Post before the commencing day;
(b) the issue, redemption, transfer, sale or purchase of such a security (other than a transaction entered into without consideration or for an inadequate consideration); or
(b) any document executed by or on behalf of Australia Post, or any transaction, in relation to money borrowed by Australia Post before the commencing day.
65
Commencement of Australia Post’s liability to pay income tax
65 Commencement of Australia Post’s liability to pay income tax
Income derived by Australia Post in a year of income commencing before 1 July 1990 is exempt income for the purposes of the Income Tax Assessment Act 1936.
66
Value of trading stock for income tax purposes
66 Value of trading stock for income tax purposes
(1) For the purpose of ascertaining under Subdivision B of Division 2 of Part III of the Income Tax Assessment Act 1936 the value to be taken into account at the beginning of the year of income commencing on 1 July 1990 in relation to Australia Post’s trading stock on hand at that time, Australia Post may, in accordance with subsection (2), exercise any option, and give any notice, in relation to the value of its trading stock on hand at the end of the preceding year of income.
(2) The option or notice:
(a) shall be exercised or given in writing to the Commissioner of Taxation; and
(b) shall be lodged with the Commissioner of Taxation on or before the day of lodgment of Australia Post’s return of income for the year of income commencing on 1 July 1990, or before such later day as the Commissioner of Taxation allows.
(3) If Australia Post does not exercise an option under subsection (1) in relation to particular trading stock, the value to be taken into account in accordance with the subsection in relation to that trading stock shall be the cost price.
(4) If Australia Post, under Subdivision B of Division 2 of Part III of the Income Tax Assessment Act 1936, adopts cost price as the basis of valuation in relation to any of its trading stock on hand at the end of the year of income commencing on 1 July 1990 that was on hand at the end of the preceding year of income, the cost price of that trading stock shall be taken to be equal to the value at which the trading stock was taken into account in accordance with subsection (1).
67
Accelerated depreciation not available for income tax purposes
67 Accelerated depreciation not available for income tax purposes
Section 57AL of the Income Tax Assessment Act 1936, 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 Australia Post.
68
Transitional provisions for capital gains tax
68 Transitional provisions for capital gains tax
(1) Where:
(a) Australia Post owns an asset at the end of 30 June 1990 (in this subsection called the “changeover time”); and
(b) the market value of the asset at the changeover time is greater than the amount that would be the indexed cost base to Australia Post in relation to the asset if Australia Post disposed of the asset at that time;
the following provisions have effect for the purpose of ascertaining under Part IIIA of the Income Tax Assessment Act 1936 whether a capital gain accrues in the event of a subsequent disposal of the asset by it:
(c) Australia Post shall be taken to have disposed of the asset at the changeover time for a consideration equal to the amount of that indexed cost base;
(d) Australia Post shall be taken to have immediately re-acquired the asset for a consideration equal to the market value of the asset at the changeover time;
(e) the reference in subsection 160Z(3) of the Income Tax Assessment Act 1936 to the day on which the asset was acquired by the taxpayer shall be taken to be a reference to the day on which the asset was actually acquired by Australia Post.
(2) If the asset is disposed of within 12 months of its actual acquisition by Australia Post, subsection (1) has effect as if the references in that subsection to the indexed cost base to Australia Post in relation to the asset were references to the cost base to Australia Post in relation to the asset.
(3) Where:
(a) Australia Post owns an asset at the end of 30 June 1990 (in this subsection called the “changeover time”); and
(b) the market value of the asset at the changeover time is less than the amount that would be the reduced cost base to Australia Post in relation to the asset if Australia Post disposed of the asset at that time;
the following provisions have effect for the purpose of ascertaining under Part IIIA of the Income Tax Assessment Act 1936 whether Australia Post incurred a capital loss in the event of a subsequent disposal of the asset by it:
(c) Australia Post shall be taken to have disposed of the asset at the changeover time for a consideration equal to the amount of that reduced cost base;
(d) Australia Post shall be taken to have immediately re-acquired the asset for a consideration equal to the market value of the asset at the changeover time.
(4) Expressions used in this section, and in Part IIIA of the Income Tax Assessment Act 1936, have the same respective meanings as in that Part.
Division 3
Non-taxation matters
An Act to enact certain transitional provisions, make certain amendments, and effect certain repeals, in consequence of the enactment of the Telecommunications Act 1989, the Australian Postal Corporation Act 1989 and the Australian Telecommunications Corporation Act 1989, and for other purposes
Part 1—Preliminary
1 Short title
This Act may be cited as the Telecommunications and Postal Services (Transitional Provisions and Consequential Amendments) Act 1989.
2 Commencement
(1) Subject to this section, this Act commences on a day or days to be fixed by Proclamation.
(2) Sections 1 and 2 commence on the day on which this Act receives the Royal Assent.
(4) If a provision of this Act (other than section 1 or 2) does not commence under subsection (1) within the period of 6 months beginning on the day on which this Act receives the Royal Assent, it commences on the first day after the end of that period.
Part 9—Transitional provisions, amendments and repeals relating to Australia Post
Division 1—Interpretation
60 Interpretation—definitions
In this Part:
commencing day means the day on which the new Act commences.
new Act means the Australian Postal Corporation Act 1989.
previous Act means the Postal Services Act 1975.
61 Interpretation—expressions used in new Act
Unless the contrary intention appears, expressions used in this Part, and in the new Act, have the same respective meanings as in that Act.
Division 2—Taxation matters
62 Stamp duty not payable in relation to certain property etc.
(1) Stamp duty or similar tax is not payable by Australia Post under a law of a State or Territory in relation to property:
(a) acquired by Australia Post before the commencing day; or
(b) constructed by Australia Post before the commencing day.
(2) Without limiting subsection (1), stamp duty or similar tax is not payable under a law of a State or Territory on the registration under a law of the State or Territory of a motor vehicle acquired by Australia Post before the commencing day.
63 Stamp duty not payable in relation to certain transactions
Stamp duty or similar tax is not payable by Australia Post under a law of a State or Territory in relation to a transaction entered into by it before the commencing day.
64 Stamp duty not payable in relation to certain securities etc.
Stamp duty or any similar tax is not payable under a law of a State or Territory in relation to:
(a) a security issued by Australia Post before the commencing day;
(b) the issue, redemption, transfer, sale or purchase of such a security (other than a transaction entered into without consideration or for an inadequate consideration); or
(b) any document executed by or on behalf of Australia Post, or any transaction, in relation to money borrowed by Australia Post before the commencing day.
65 Commencement of Australia Post’s liability to pay income tax
Income derived by Australia Post in a year of income commencing before 1 July 1990 is exempt income for the purposes of the Income Tax Assessment Act 1936.
66 Value of trading stock for income tax purposes
(1) For the purpose of ascertaining under Subdivision B of Division 2 of Part III of the Income Tax Assessment Act 1936 the value to be taken into account at the beginning of the year of income commencing on 1 July 1990 in relation to Australia Post’s trading stock on hand at that time, Australia Post may, in accordance with subsection (2), exercise any option, and give any notice, in relation to the value of its trading stock on hand at the end of the preceding year of income.
(2) The option or notice:
(a) shall be exercised or given in writing to the Commissioner of Taxation; and
(b) shall be lodged with the Commissioner of Taxation on or before the day of lodgment of Australia Post’s return of income for the year of income commencing on 1 July 1990, or before such later day as the Commissioner of Taxation allows.
(3) If Australia Post does not exercise an option under subsection (1) in relation to particular trading stock, the value to be taken into account in accordance with the subsection in relation to that trading stock shall be the cost price.
(4) If Australia Post, under Subdivision B of Division 2 of Part III of the Income Tax Assessment Act 1936, adopts cost price as the basis of valuation in relation to any of its trading stock on hand at the end of the year of income commencing on 1 July 1990 that was on hand at the end of the preceding year of income, the cost price of that trading stock shall be taken to be equal to the value at which the trading stock was taken into account in accordance with subsection (1).
67 Accelerated depreciation not available for income tax purposes
Section 57AL of the Income Tax Assessment Act 1936, 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 Australia Post.
68 Transitional provisions for capital gains tax
(1) Where:
(a) Australia Post owns an asset at the end of 30 June 1990 (in this subsection called the “changeover time”); and
(b) the market value of the asset at the changeover time is greater than the amount that would be the indexed cost base to Australia Post in relation to the asset if Australia Post disposed of the asset at that time;
the following provisions have effect for the purpose of ascertaining under Part IIIA of the Income Tax Assessment Act 1936 whether a capital gain accrues in the event of a subsequent disposal of the asset by it:
(c) Australia Post shall be taken to have disposed of the asset at the changeover time for a consideration equal to the amount of that indexed cost base;
(d) Australia Post shall be taken to have immediately re-acquired the asset for a consideration equal to the market value of the asset at the changeover time;
(e) the reference in subsection 160Z(3) of the Income Tax Assessment Act 1936 to the day on which the asset was acquired by the taxpayer shall be taken to be a reference to the day on which the asset was actually acquired by Australia Post.
(2) If the asset is disposed of within 12 months of its actual acquisition by Australia Post, subsection (1) has effect as if the references in that subsection to the indexed cost base to Australia Post in relation to the asset were references to the cost base to Australia Post in relation to the asset.
(3) Where:
(a) Australia Post owns an asset at the end of 30 June 1990 (in this subsection called the “changeover time”); and
(b) the market value of the asset at the changeover time is less than the amount that would be the reduced cost base to Australia Post in relation to the asset if Australia Post disposed of the asset at that time;
the following provisions have effect for the purpose of ascertaining under Part IIIA of the Income Tax Assessment Act 1936 whether Australia Post incurred a capital loss in the event of a subsequent disposal of the asset by it:
(c) Australia Post shall be taken to have disposed of the asset at the changeover time for a consideration equal to the amount of that reduced cost base;
(d) Australia Post shall be taken to have immediately re-acquired the asset for a consideration equal to the market value of the asset at the changeover time.
(4) Expressions used in this section, and in Part IIIA of the Income Tax Assessment Act 1936, have the same respective meanings as in that Part.
Division 3—Non-taxation matters
69 Certain existing liabilities to the Commonwealth
Subject to any regulations made under the new Act, section 74 of the previous Act, as in force immediately before the commencement of this Part, continues to have effect as if the previous Act had not been repealed.
72 Employment of staff members to continue
Each person who, immediately before the commencing day, was an employee of Australia Post continues to be employed by it as if the person had been engaged under section 89 of the new Act.
73 Unclaimed amounts
(1) Amounts paid into the Unclaimed Moneys Fund kept by Australia Post under section 107 of the previous Act shall be dealt with as if they had been paid into the Unclaimed Money Fund kept under section 98 of the new Act.
(2) Amounts paid into the Consolidated Revenue Fund under section 107 of the previous Act shall be dealt with as if that Act had not been repealed.
Part 10—Transitional provisions, amendments and repeals relating to Telecom
Division 1—Interpretation
76 Interpretation—definitions
In this Part:
commencing day means the day on which the new Act commences.
new Act means the Australian Telecommunications Corporation Act 1989.
previous Act means the Telecommunications Act 1975.
77 Interpretation—expressions used in new Act
Unless the contrary intention appears, expressions used in this Part, and in the new Act, have the same respective meanings as in that Act.
Division 3—Non-taxation matters
85 Certain existing liabilities to the Commonwealth
Subject to any regulations made under the new Act, section 71 of the old Act, as in force immediately before the commencement of this Part, continues to have effect as if the previous Act had not been repealed.
88 Employment of staff members to continue
Each person who, immediately before the commencing day, was an employee of Telecom continues to be employed by it as if the person had been engaged under section 85 of the new Act.
69
Certain existing liabilities to the Commonwealth
69 Certain existing liabilities to the Commonwealth
Subject to any regulations made under the new Act, section 74 of the previous Act, as in force immediately before the commencement of this Part, continues to have effect as if the previous Act had not been repealed.
72
Employment of staff members to continue
72 Employment of staff members to continue
Each person who, immediately before the commencing day, was an employee of Australia Post continues to be employed by it as if the person had been engaged under section 89 of the new Act.
73
Unclaimed amounts
73 Unclaimed amounts
(1) Amounts paid into the Unclaimed Moneys Fund kept by Australia Post under section 107 of the previous Act shall be dealt with as if they had been paid into the Unclaimed Money Fund kept under section 98 of the new Act.
(2) Amounts paid into the Consolidated Revenue Fund under section 107 of the previous Act shall be dealt with as if that Act had not been repealed.
Part 10
Transitional provisions, amendments and repeals relating to Telecom
An Act to enact certain transitional provisions, make certain amendments, and effect certain repeals, in consequence of the enactment of the Telecommunications Act 1989, the Australian Postal Corporation Act 1989 and the Australian Telecommunications Corporation Act 1989, and for other purposes
Part 1—Preliminary
1 Short title
This Act may be cited as the Telecommunications and Postal Services (Transitional Provisions and Consequential Amendments) Act 1989.
2 Commencement
(1) Subject to this section, this Act commences on a day or days to be fixed by Proclamation.
(2) Sections 1 and 2 commence on the day on which this Act receives the Royal Assent.
(4) If a provision of this Act (other than section 1 or 2) does not commence under subsection (1) within the period of 6 months beginning on the day on which this Act receives the Royal Assent, it commences on the first day after the end of that period.
Part 9—Transitional provisions, amendments and repeals relating to Australia Post
Division 1—Interpretation
60 Interpretation—definitions
In this Part:
commencing day means the day on which the new Act commences.
new Act means the Australian Postal Corporation Act 1989.
previous Act means the Postal Services Act 1975.
61 Interpretation—expressions used in new Act
Unless the contrary intention appears, expressions used in this Part, and in the new Act, have the same respective meanings as in that Act.
Division 2—Taxation matters
62 Stamp duty not payable in relation to certain property etc.
(1) Stamp duty or similar tax is not payable by Australia Post under a law of a State or Territory in relation to property:
(a) acquired by Australia Post before the commencing day; or
(b) constructed by Australia Post before the commencing day.
(2) Without limiting subsection (1), stamp duty or similar tax is not payable under a law of a State or Territory on the registration under a law of the State or Territory of a motor vehicle acquired by Australia Post before the commencing day.
63 Stamp duty not payable in relation to certain transactions
Stamp duty or similar tax is not payable by Australia Post under a law of a State or Territory in relation to a transaction entered into by it before the commencing day.
64 Stamp duty not payable in relation to certain securities etc.
Stamp duty or any similar tax is not payable under a law of a State or Territory in relation to:
(a) a security issued by Australia Post before the commencing day;
(b) the issue, redemption, transfer, sale or purchase of such a security (other than a transaction entered into without consideration or for an inadequate consideration); or
(b) any document executed by or on behalf of Australia Post, or any transaction, in relation to money borrowed by Australia Post before the commencing day.
65 Commencement of Australia Post’s liability to pay income tax
Income derived by Australia Post in a year of income commencing before 1 July 1990 is exempt income for the purposes of the Income Tax Assessment Act 1936.
66 Value of trading stock for income tax purposes
(1) For the purpose of ascertaining under Subdivision B of Division 2 of Part III of the Income Tax Assessment Act 1936 the value to be taken into account at the beginning of the year of income commencing on 1 July 1990 in relation to Australia Post’s trading stock on hand at that time, Australia Post may, in accordance with subsection (2), exercise any option, and give any notice, in relation to the value of its trading stock on hand at the end of the preceding year of income.
(2) The option or notice:
(a) shall be exercised or given in writing to the Commissioner of Taxation; and
(b) shall be lodged with the Commissioner of Taxation on or before the day of lodgment of Australia Post’s return of income for the year of income commencing on 1 July 1990, or before such later day as the Commissioner of Taxation allows.
(3) If Australia Post does not exercise an option under subsection (1) in relation to particular trading stock, the value to be taken into account in accordance with the subsection in relation to that trading stock shall be the cost price.
(4) If Australia Post, under Subdivision B of Division 2 of Part III of the Income Tax Assessment Act 1936, adopts cost price as the basis of valuation in relation to any of its trading stock on hand at the end of the year of income commencing on 1 July 1990 that was on hand at the end of the preceding year of income, the cost price of that trading stock shall be taken to be equal to the value at which the trading stock was taken into account in accordance with subsection (1).
67 Accelerated depreciation not available for income tax purposes
Section 57AL of the Income Tax Assessment Act 1936, 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 Australia Post.
68 Transitional provisions for capital gains tax
(1) Where:
(a) Australia Post owns an asset at the end of 30 June 1990 (in this subsection called the “changeover time”); and
(b) the market value of the asset at the changeover time is greater than the amount that would be the indexed cost base to Australia Post in relation to the asset if Australia Post disposed of the asset at that time;
the following provisions have effect for the purpose of ascertaining under Part IIIA of the Income Tax Assessment Act 1936 whether a capital gain accrues in the event of a subsequent disposal of the asset by it:
(c) Australia Post shall be taken to have disposed of the asset at the changeover time for a consideration equal to the amount of that indexed cost base;
(d) Australia Post shall be taken to have immediately re-acquired the asset for a consideration equal to the market value of the asset at the changeover time;
(e) the reference in subsection 160Z(3) of the Income Tax Assessment Act 1936 to the day on which the asset was acquired by the taxpayer shall be taken to be a reference to the day on which the asset was actually acquired by Australia Post.
(2) If the asset is disposed of within 12 months of its actual acquisition by Australia Post, subsection (1) has effect as if the references in that subsection to the indexed cost base to Australia Post in relation to the asset were references to the cost base to Australia Post in relation to the asset.
(3) Where:
(a) Australia Post owns an asset at the end of 30 June 1990 (in this subsection called the “changeover time”); and
(b) the market value of the asset at the changeover time is less than the amount that would be the reduced cost base to Australia Post in relation to the asset if Australia Post disposed of the asset at that time;
the following provisions have effect for the purpose of ascertaining under Part IIIA of the Income Tax Assessment Act 1936 whether Australia Post incurred a capital loss in the event of a subsequent disposal of the asset by it:
(c) Australia Post shall be taken to have disposed of the asset at the changeover time for a consideration equal to the amount of that reduced cost base;
(d) Australia Post shall be taken to have immediately re-acquired the asset for a consideration equal to the market value of the asset at the changeover time.
(4) Expressions used in this section, and in Part IIIA of the Income Tax Assessment Act 1936, have the same respective meanings as in that Part.
Division 3—Non-taxation matters
69 Certain existing liabilities to the Commonwealth
Subject to any regulations made under the new Act, section 74 of the previous Act, as in force immediately before the commencement of this Part, continues to have effect as if the previous Act had not been repealed.
72 Employment of staff members to continue
Each person who, immediately before the commencing day, was an employee of Australia Post continues to be employed by it as if the person had been engaged under section 89 of the new Act.
73 Unclaimed amounts
(1) Amounts paid into the Unclaimed Moneys Fund kept by Australia Post under section 107 of the previous Act shall be dealt with as if they had been paid into the Unclaimed Money Fund kept under section 98 of the new Act.
(2) Amounts paid into the Consolidated Revenue Fund under section 107 of the previous Act shall be dealt with as if that Act had not been repealed.
Part 10—Transitional provisions, amendments and repeals relating to Telecom
Division 1—Interpretation
76 Interpretation—definitions
In this Part:
commencing day means the day on which the new Act commences.
new Act means the Australian Telecommunications Corporation Act 1989.
previous Act means the Telecommunications Act 1975.
77 Interpretation—expressions used in new Act
Unless the contrary intention appears, expressions used in this Part, and in the new Act, have the same respective meanings as in that Act.
Division 3—Non-taxation matters
85 Certain existing liabilities to the Commonwealth
Subject to any regulations made under the new Act, section 71 of the old Act, as in force immediately before the commencement of this Part, continues to have effect as if the previous Act had not been repealed.
88 Employment of staff members to continue
Each person who, immediately before the commencing day, was an employee of Telecom continues to be employed by it as if the person had been engaged under section 85 of the new Act.
76
Interpretation—definitions
76 Interpretation—definitions
In this Part:
commencing day means the day on which the new Act commences.
new Act means the Australian Telecommunications Corporation Act 1989.
previous Act means the Telecommunications Act 1975.
77
Interpretation—expressions used in new Act
77 Interpretation—expressions used in new Act
Unless the contrary intention appears, expressions used in this Part, and in the new Act, have the same respective meanings as in that Act.
85
Certain existing liabilities to the Commonwealth
85 Certain existing liabilities to the Commonwealth
Subject to any regulations made under the new Act, section 71 of the old Act, as in force immediately before the commencement of this Part, continues to have effect as if the previous Act had not been repealed.
88
Employment of staff members to continue
88 Employment of staff members to continue
Each person who, immediately before the commencing day, was an employee of Telecom continues to be employed by it as if the person had been engaged under section 85 of the new Act.
Source text: opening excerpt
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
Part 1 Preliminary
Part 1—Preliminary
1 Short title
1 Short title
This Act may be cited as the Telecommunications and Postal Services (Transitional Provisions and Consequential Amendments) Act 1989.
2 Commencement
2 Commencement
(1) Subject to this section, this Act commences on a day or days to be fixed by Proclamation.
(2) Sections 1 and 2 commence on the day on which this Act receives the Royal Assent.
(4) If a provision of this Act (other than section 1 or 2) does not commence under subsection (1) within the period of 6 months beginning on the day on which this Act receives the Royal Assent, it commences on the first day after the end of that period.
Part 9 Transitional provisions, amendments and repeals relating to Australia Post
An Act to enact certain transitional provisions, make certain amendments, and effect certain repeals, in consequence of the enactment of the Telecommunications Act 1989, the Australian Postal Corporation Act 1989 and the Australian Telecommunications Corporation Act 1989, and for other purposes
Part 1—Preliminary
1 Short title
This Act may be cited as the Telecommunications and Postal Services (Transitional Provisions and Consequential Amendments) Act 1989.
2 Commencement
(1) Subject to this section, this Act commences on a day or days to be fixed by Proclamation.
(2) Sections 1 and 2 commence on the day on which this Act receives the Royal Assent.
(4) If a provision of this Act (other than section 1 or 2) does not commence under subsection (1) within the period of 6 months beginning on the day on which this Act receives the Royal Assent, it commences on the first day after the end of that period.
Part 9—Transitional provisions, amendments and repeals relating to Australia Post
Division 1—Interpretation
60 Interpretation—definitions
In this Part:
commencing day means the day on which the new Act commences.
new Act means the Australian Postal Corporation Act 1989.
previous Act means the Postal Services Act 1975.
61 Interpretation—expressions used in new Act
Unless the contrary intention appears, expressions used in this Part, and in the new Act, have the same respective meanings as in that Act.
Division 2—Taxation matters
It preserves a number of non‑tax legal consequences from the repealed statutes: certain existing liabilities to the Commonwealth continue to have effect (s 69 for Australia Post; s 85 for Telecom) subject to regulations under the relevant new Act; continuing employment is provided by deeming existing employees to be engaged under specified sections of the new Acts (s 72 for Australia Post; s 88 for Telecom); and unclaimed moneys paid into a fund under the previous postal statute are to be treated as paid into the corresponding fund under the new postal statute (s 73(1)), while amounts previously paid into Consolidated Revenue Fund under the old Act continue to be dealt with as if the old Act remained in force (s 73(2)).
Mechanically, the Act does not itself create new regulatory powers for Australia Post or Telecom. Instead it preserves prior liabilities and positions, creates tax and stamp‑duty exemptions for specific pre‑commencement items, and sets temporal tax treatment rules (particularly for years and dates around 30 June 1990 and 1 July 1990). The Act repeatedly defers to the successor Commonwealth Acts when it preserves the operative effect of particular prior‑Act provisions “as if the previous Act had not been repealed” (s 69; s 85), and it expressly links interpretation to the new Acts by providing that expressions have the same meanings as in the new Acts unless a contrary intention appears (s 61; s 77). Those cross‑references govern how the transitional mechanics are to be read and implemented.
The Act does not set out penalties, bespoke enforcement mechanisms, or administrative procedures beyond the limited lodgment procedure for stock‑valuation options under s 66. Enforcement therefore proceeds under the substantive tax and other laws to which these transitional measures refer.
Main concepts
The Act organises its material around two institutional transitions: the conversion of the postal service legal form and the conversion of the telecommunications monopoly provider legal form. The main concepts are:
Commencing day, new Act and previous Act. For each Part the Act defines the commencing day as the day on which the successor Commonwealth Act commences, the new Act as the successor Act (Australian Postal Corporation Act 1989 in Pt 9; Australian Telecommunications Corporation Act 1989 in Pt 10), and the previous Act as the repealed Commonwealth statute (Postal Services Act 1975 in Pt 9; Telecommunications Act 1975 in Pt 10) (s 60; s 76). Those definitions anchor the temporal scope of the transitional measures.
Continuity of expressions. The Act instructs that, unless a contrary intention appears, expressions used in the transitional Part have the same meanings as in the relevant new Act (s 61 for Australia Post; s 77 for Telecom). That means legal terms appearing in the transitional provisions must be read against the definitions and drafting conventions of the new Acts.
State/Territory stamp duty and similar taxes. The Act removes the liability of Australia Post to pay stamp duty or similar State/Territory taxes in respect of property acquired or constructed before the commencing day, transactions entered into before the commencing day, and securities and related documents issued or executed before the commencing day (s 62-64). For motor vehicles specifically, registration under State/Territory law for vehicles acquired before the commencing day is excluded from stamp duty (s 62(2)). These are statutory exemptions from subnational duties for specified historical actions.
Income tax and trading stock treatment. The Act declares income derived by Australia Post in any income year commencing before 1 July 1990 to be exempt income for the purposes of the Income Tax Assessment Act 1936 (s 65). It also permits Australia Post to exercise valuation options for trading stock for the year of income commencing 1 July 1990 by written notice to the Commissioner of Taxation, with timing tied to lodgment of its return for that year (s 66(1)-(2)). If no option is exercised, cost price is the default (s 66(3)). If cost price is adopted under the referenced provisions of the Income Tax Assessment Act, the cost price is taken equal to the value previously used under s 66(1) (s 66(4)).
Depreciation and capital gains transitional rules. The Act disapplies s 57AL of the Income Tax Assessment Act 1936 (as in force immediately after a specified Taxation Laws Amendment Act) in relation to units of property of Australia Post (s 67). It then sets out a deemed disposal/reacquisition regime at the “changeover time” 30 June 1990 for capital gains tax purposes, treating assets as disposed and re‑acquired at specified values and carrying forward acquisition dates for particular Part IIIA references (s 68(1)-(4)). Subsection (2) modifies the operation if the asset is disposed of within 12 months of actual acquisition.
Preservation of prior Commonwealth liabilities and institutional continuity. The Act preserves the effect of certain sections of the previous Acts as if those Acts had not been repealed, but subject to regulations made under the new Acts (s 69; s 85). It also deems employees to remain employed under specified sections of the new Acts (s 72; s 88) and provides rules for the handling of unclaimed moneys (s 73).
Regulatory deferral to successor Acts. Several provisions are expressly “subject to any regulations made under the new Act” (s 69; s 85), so the transitional status of certain liabilities can be varied by regulations under the Commonwealth successor statutes.
These concepts are primarily temporal and preservative: they identify particular pre‑commencement acts, transactions, documents and employees and specify how taxation and statutory statuses are to be determined at and immediately after the handover from the repealed Commonwealth Acts to the new Commonwealth Acts.
Who it affects
The Act identifies and affects a small set of institutional actors and third parties, with distinct burdens and benefits:
Australia Post. The Act explicitly names Australia Post as the entity enjoying exemptions and transitional tax treatment in Pt 9. The statutory beneficiaries include Australia Post itself for stamp duty and similar taxes on property acquired or constructed before the commencing day (s 62), stamp duty on transactions entered into before the commencing day (s 63), and exemptions relating to securities and documents issued or executed before the commencing day (s 64). Australia Post is also the entity whose income is declared exempt for certain years (s 65), whose trading stock valuation options are preserved (s 66), whose property is excluded from accelerated depreciation under s 57AL of the Income Tax Assessment Act 1936 (s 67), and whose assets are subject to the specific deemed disposal/reacquisition rules at the changeover time for capital gains purposes (s 68). The Act confirms that employees of Australia Post immediately before the commencing day continue employed as if engaged under s 89 of the new Act (s 72).
Telecom (the Australian Telecommunications Corporation). The Act provides the parallel continuity for Telecom in Pt 10. It preserves certain liabilities of Telecom to the Commonwealth by carrying forward the effect of section 71 of the old Act (s 85). It deems Telecom employees who were employed immediately before the commencing day to continue as employees as if engaged under s 85 of the new Act (s 88).
Employees of Australia Post and Telecom. Employees who were employed immediately before the respective commencing day are expressly protected: they continue in employment "as if" engaged under selected sections of the new Acts (s 72; s 88). Their employment continuity is therefore determined by reference to the terms and obligations of those specific sections in the new Acts.
Commissioner of Taxation. The Commissioner is the recipient of any trading‑stock valuation options or notices that Australia Post may lodge under s 66(2). The Commissioner may also allow a later lodgment day (s 66(2)(b)). The Income Tax Assessment Act 1936 remains the operative tax framework for assessing the tax consequences that these transitional rules put into play (s 65; s 66; s 67; s 68).
State and Territory revenue authorities. The Act removes the liability of Australia Post to State/Territory stamp duty or similar taxes in specific pre‑commencement circumstances (s 62-64). That shifts the immediate tax incidence for those specified matters away from State/Territory duties and creates a binding limitation on State/Territory taxation powers in respect of those pre‑commencement assets, transactions, securities and documents.
Holders and transferees of Australia Post securities or parties to pre‑commencement transactions. Transactions relating to securities issued before the commencing day, and the subsequent issue/redemption/transfer/sale/purchase of those securities, are exempt from State/Territory stamp duty except where the transaction is entered into without, or for inadequate, consideration (s 64).
The Commonwealth and persons with liabilities under the previous Acts. The Act preserves certain existing liabilities to the Commonwealth by continuing specified sections of the previous Acts as if those Acts had not been repealed, subject to regulations under the new Acts (s 69; s 85). That affects parties with obligations or rights under those repealed provisions.
Absent from the statutory text are provisions that create obligations on third parties beyond those already required under the referenced tax and employment laws. The Act is narrowly targeted at (1) securing a particular set of tax and property positions for Australia Post in relation to pre‑commencement events, (2) preserving certain liabilities and employment relationships across the statutory transition, and (3) ensuring specific capital gains tax mechanics at defined dates. It does not purport to alter the general tax or regulatory obligations of unrelated private businesses.
Key duties and rights
The Act establishes a limited set of duties to be performed and rights conferred. The following are the principal ones, with section references:
Rights and entitlements
Exemption from State/Territory stamp duty and similar taxes for Australia Post in respect of property acquired or constructed before the commencing day (s 62(1)) and on motor vehicle registration for motor vehicles acquired before the commencing day (s 62(2)). This right also covers pre‑commencement transactions (s 63) and securities/documents issued/executed before the commencing day (s 64).
Income tax exemption for Australia Post’s income in any year of income commencing before 1 July 1990, for the purposes of the Income Tax Assessment Act 1936 (s 65).
Familiar tax‑accounting options for trading stock for Australia Post in relation to the year of income commencing 1 July 1990: Australia Post may exercise options and give notices in writing to the Commissioner of Taxation about the valuation of trading stock on hand at the beginning of that year, with timing rules tied to lodgment of Australia Post’s tax return (s 66(1)-(2)). If no option is exercised the default valuation is cost price (s 66(3)). If cost price is adopted under the referenced provisions, the statutory cost price equals the value taken under s 66(1) (s 66(4)).
For capital gains tax purposes at the changeover time (end of 30 June 1990), deemed disposal/reacquisition rules apply so that market value and indexed cost base or reduced cost base interact in prescribed ways when market value differs from those tax bases (s 68(1)-(4)).
Duties and procedural requirements
Australia Post may, and where it wishes to rely on the trading‑stock options must, exercise and lodge any option or notice in writing with the Commissioner of Taxation on or before the day of lodgment of its return for the year of income commencing 1 July 1990, or before such later day as the Commissioner allows (s 66(2)(a)-(b)). That is a discrete procedural duty tied to tax administration.
The Act instructs State/Territory authorities that specified taxes are not payable by Australia Post for the enumerated pre‑commencement matters (s 62-64). That is framed as a statutory prohibition on the application of those taxes in the enumerated circumstances rather than as an affirmative Commonwealth duty to reimburse.
For employment continuity, the Act deems employees to continue as if engaged under particular sections of the new Acts (s 72 for Australia Post referring to s 89 of the new Act; s 88 for Telecom referring to s 85 of the new Act). The consequence is a statutory continuity of employment status and rights, with the operative terms drawn from the new Acts.
The Act continues certain liabilities of the previous Acts as if those Acts had not been repealed, but subject to any regulations made under the new Acts (s 69; s 85). That creates a duty‑effect in the sense that obligations under the older provisions remain enforceable as provided, unless modified by regulation under the new Act.
Limits and exceptions
The stamp duty exemptions apply only to items existing before the commencing day. The exemptions are expressly circumscribed by timing (s 62-64).
The securities exemption excludes transactions entered into without consideration or for inadequate consideration (s 64(b) [second (b) in text]).
The income tax exemption is limited to years commencing before 1 July 1990 (s 65).
The capital gains transitional provisions operate at the “changeover time”, defined as the end of 30 June 1990, and include a special rule for disposals within 12 months of actual acquisition (s 68(1)-(3)).
Rights in this Act are largely rights to particular tax treatments and continuity of employment and liabilities across a statutory handover. Duties are mainly procedural obligations to lodge notices where Australia Post elects to exercise options and the continuing obligations under preserved previous‑Act provisions. Enforcement of these duties and rights will generally proceed through the existing tax law and administrative frameworks referenced by the Act.
Penalties and enforcement
The Act itself does not introduce a new suite of civil or criminal penalties. It frames transitional and saving provisions and defers enforcement and tax assessment to the existing statutory frameworks that it cites. Key enforcement and penalty implications from the supplied text are:
No penalties in the Act. The supplied text contains no penalty clauses, infringing conduct descriptions, or specified sanctioning powers attached to the transitional provisions themselves. The Act provides exemptions and deemed treatments but does not create new offences or penalty schedules.
Enforcement through existing tax law. Where the Act interacts with the Income Tax Assessment Act 1936 (for example ss 65-68), enforcement, assessments, objections, and penalties for incorrect tax returns or contraventions of tax law will be governed by the Income Tax Assessment Act and associated tax administration laws. The Act requires Australia Post to lodge options and notices with the Commissioner of Taxation (s 66(2)); failure to do so may affect entitlement to the preferred valuation outcome, and any failure to comply with existing tax law procedures could attract the usual tax administrative consequences under the Income Tax Assessment Act, but those consequences are not specified in this Act.
State/Territory compliance. The Act removes State/Territory stamp duty liability in certain specified circumstances (s 62-64). It does not provide a mechanism for States or Territories to recover sums nor does it create penalties against revenue officers; rather, it statutorily immunises certain pre‑commencement events from State/Territory stamp duty or similar taxes as set out. Disputes about the application of this immunisation would be resolved under the relevant State/Territory laws and ultimately by courts if contested.
Continuity and regulation. The continued effect of specified sections of the previous Acts (s 69; s 85) is made subject to regulations under the new Acts. That means enforcement of those preserved liabilities will proceed under the terms of the prior provisions as read with any regulations made under the new Acts. Regulatory instruments made under the new Acts may therefore change administrative detail, but the Act does not itself prescribe penalty frameworks for those preserved liabilities.
Administrative discretion residing in the Commissioner of Taxation. The Commissioner has the discretion to accept a later lodgment day for trading stock valuations under s 66(2)(b). That is an administrative power which may be exercised under existing tax administration rules; the Act does not prescribe criteria for the exercise of that discretion.
Practically, organisations and legal advisers should assume that compliance, challenge and sanction will be handled through the referenced substantive statutes and administrative systems rather than through this Act itself. Any enforcement action in relation to tax or employment will rely on the operative tax or employment law provisions rather than on new enforcement provisions in the transitional Act.
How it interacts with other laws
This Act is expressly designed to operate in conjunction with particular Commonwealth and subnational laws. The supplied text makes multiple cross‑references; the principal interactions are the following:
New Commonwealth Acts as definitional anchors. The transitional Parts instruct that expressions used in the Part have the same meanings as in the relevant new Act unless the contrary intention appears (s 61; s 77). That means reading any transitional provision requires reference to the Australian Postal Corporation Act 1989 for Pt 9 and the Australian Telecommunications Corporation Act 1989 for Pt 10 for definitions, procedural concepts and terms used by those transitional provisions.
Preservation of previous Act provisions. The Act carries forward the effect of certain sections of the repealed Acts “as if” those previous Acts had not been repealed (s 69 carries forward s 74 of the previous Postal Services Act 1975; s 85 carries forward s 71 of the previous Telecommunications Act 1975). That creates a legal bridge so rights and liabilities created under the repealed statutes continue to be enforceable, subject to regulations under the new Acts.
Income tax law. The Act interacts closely with the Income Tax Assessment Act 1936. It designates particular income as exempt for the purposes of that Act (s 65), specifies valuation options and procedural lodgment rules in relation to Subdivision B of Division 2 of Part III of that Act for trading stock (s 66), disapplies a specific depreciation provision (s 67), and imports Part IIIA concepts and meanings into its capital gains transitional rules (s 68(4)). The deemed disposal and reacquisition mechanics in s 68 are expressly for the purposes of ascertaining capital gains under Part IIIA.
State and Territory taxation regimes. The Act expressly limits the application of State/Territory stamp duty and similar taxes with respect to certain pre‑commencement property, transactions, securities and documents connected to Australia Post (s 62-64). That establishes a Commonwealth statutory limitation on the reach of subnational duties for those enumerated matters. The Act does not otherwise alter State/Territory tax law for non‑covered items.
Administrative law and Commissioner discretion. The Act requires written options or notices to be given to the Commissioner of Taxation and permits the Commissioner to allow a later lodgment day (s 66). That interacts with the Commissioner’s powers and administrative practice under tax law.
Regulatory instruments under new Acts. Sections that continue prior liabilities to the Commonwealth are explicitly subject to any regulations made under the relevant new Act (s 69; s 85). That interaction means the transitional effect of some prior provisions can be modified by regulations exercising powers created by the successor Commonwealth statutes.
Funds and public money frameworks. The Act provides that amounts held under an unclaimed monies fund under the previous postal statute are to be dealt with as if paid into the Unclaimed Money Fund under the new postal statute (s 73(1)). Amounts previously paid into the Consolidated Revenue Fund remain treated as if the prior Act had not been repealed (s 73(2)). Those directions interact with Commonwealth public money management frameworks and the operative provisions of the successor postal statute concerning unclaimed money.
Employment and labour law via successor Acts. Employee continuity is achieved by deeming employees to be engaged under specific sections of the new Acts (s 72 referencing s 89 of the new postal Act; s 88 referencing s 85 of the new Telecom Act). The practical terms and legal consequences of employment therefore depend on the contents of those newly referenced sections in the successor Commonwealth Acts.
In short, the Act is a connective statute. It does not stand alone; its operative effect depends on definitions, procedures and enforcement frameworks located across: the new Commonwealth Acts (for definitions, employment terms, and regulations), the Income Tax Assessment Act 1936 (for substantive tax consequences and procedure), and State/Territory stamp duty regimes (which the Act partially removes for particular items). Where the Act preserves past liabilities or delegates effect to the new Acts, it expressly allows regulations under those new Acts to alter how those preserved liabilities operate in practice (s 69; s 85), so the full legal effect requires examining instruments made under the new Acts as well.
Amendment history
The supplied text does not contain an internal amendment history, schedules of amendment, or notes of subsequent legislative changes. The Act as provided is presented with its original provisions and repeated blocks (the supplied text contains multiple repetitions of the same sections). There are two operational commencement mechanisms set out in the text:
Sections 1 and 2 commence on the day the Act receives Royal Assent (s 2(2)).
Other provisions commence on proclamation, but if not proclaimed within six months they commence automatically on the first day after the end of that six‑month period (s 2(1), (4)).
Because the supplied source is a stand‑alone presentation of the Act’s provisions without amendment annotations, users should treat this document as the base statutory text only. The Act itself instructs readers to interpret transitional provisions by reference to the new Acts and the Income Tax Assessment Act 1936, but it contains no explicit schedules or notes of reprints or subsequent amendments. The Act also contemplates that regulations made under the new Acts may affect the continued operation of certain preserved provisions (s 69; s 85), which is a legislative design permitting subsequent executive regulation to alter transitional detail.
For practical use, a reader should not assume any later federal amendments, repeals, or regulations are reflected in this supplied text. Any update, consolidation or later amending instrument would have to be confirmed from an official consolidated statute database or an up‑to‑date legislative instrument register. The supplied text does not record the dates of proclamation of the new Acts or the actual commencing day for those Acts. Those factual elements will determine the operative temporal scope of the transitional measures in practice.
Litigation history
The supplied material contains no litigation history, no references to court decisions, and no citations to judicial interpretations. It does not record any cases, appeals or administrative rulings that have tested the transitional provisions, stamp duty exemptions, trading stock valuation rules, disapplication of s 57AL, or the capital gains deemed disposal/reacquisition mechanics. Because the text is silent on litigation, there is no authoritative jurisprudence included here to explain how courts have interpreted:
the scope of the stamp duty exemptions in s 62-64;
the mechanics and practical operation of the deemed disposal/reacquisition rules in s 68, including questions of valuation or timing;
the meaning and operation of the “as if the previous Act had not been repealed” language in s 69 and s 85 where regulations under the new Act later intervene;
the employment continuity deeming in s 72 and s 88 where disputes over terms or entitlements might have arisen.
Absent any reported cases or references in the supplied text, a practitioner relying on this Act for transactional or litigation advice would need to investigate external sources for any judicial authority or administrative rulings that have construed these provisions. The Act’s heavy reliance on interaction with the Income Tax Assessment Act 1936 and State/Territory duties also indicates that litigation, if any, could have been routed through tax tribunals, Federal or State courts, or administrative reviews under the Commissioner’s procedures; none of those appear in the supplied material.
Gotchas
The supplied text contains several drafting and practical features that merit attention because they can create traps for the unwary:
Timing anchors are precise and multiple. The Act uses multiple critical dates: the commencing day for each new Act (defined in each Part); the changeover time at the end of 30 June 1990 (s 68); and the year of income commencing before 1 July 1990 (s 65-66). An adviser must identify exactly which date applies for a particular asset, transaction or income year because the tax consequences differ depending on where the event falls relative to those dates.
Stamp duty exemptions are strictly backward‑looking. s 62-64 provide exemptions only for property acquired or constructed, transactions entered into, or securities/documents issued/executed before the commencing day. Anything done on or after the commencing day is not covered by these exemptions. Practitioners need to document acquisition/construction and transaction dates carefully to preserve the benefit.
Motor vehicle registration singled out. s 62(2) expressly states stamp duty or similar tax is not payable on the State/Territory registration of motor vehicles acquired before the commencing day. The narrow drafting makes vehicle registration a specific point of interaction between Commonwealth transitional relief and State/Territory registration systems; parties should ensure the relevant registration occurs in a way that reflects the pre‑commencement acquisition.
Securities exclusion for inadequate consideration. s 64 excludes from exemption any transaction entered into without consideration or for inadequate consideration. That raises valuation and commercial realism issues for related‑party transfers and reorganisations around the commencing day. Parties should avoid failing to document consideration or using token consideration if they intend to rely on the exemption.
Procedural strictness for trading stock options. s 66 requires Australia Post to exercise options and give notices in writing to the Commissioner of Taxation and to lodge them by the date of lodgment of Australia Post’s return for the year of income commencing 1 July 1990, or a later date the Commissioner allows (s 66(2)). That ties a taxation election to administrative timing; failing to lodge on time risks loss of the chosen method and defaulting to cost price (s 66(3)).
Deemed disposal/reacquisition mechanics may produce unexpected tax bases. s 68 prescribes deemed disposal for indexed cost base comparison and deemed reacquisition at market value at the changeover time. This will alter the capital gains profile on a later disposal. In particular, s 68(2) changes references when disposal is within 12 months of actual acquisition. Careful record‑keeping of cost bases, indexed cost bases, acquisition dates and market valuations at 30 June 1990 is necessary.
Disapplication of accelerated depreciation. s 67 disapplies s 57AL of the Income Tax Assessment Act 1936 in relation to any unit of property of Australia Post. Where taxpayers might expect accelerated depreciation to apply to assets transferred to or held by Australia Post, that expectation will be frustrated by the express disapplication. The legislated disapplication is targeted and limited to Australia Post units of property.
“As if the previous Act had not been repealed” is subject to later regulations. s 69 (for Australia Post) and s 85 (for Telecom) preserve certain prior Act sections in effect but do so “subject to any regulations made under the new Act”. That creates a two‑stage risk: rights and liabilities are preserved conditional on any later regulations promulgated under the new Acts. Parties relying on preserved liabilities should monitor regulatory instruments under the successor Acts for changes.
Repetition and drafting idiosyncrasies in the supplied text. The supplied source repeats many provisions verbatim and contains a duplicated paragraph numbering in s 64 (two subparagraphs both labelled (b)). Users should consult an official consolidated text for authoritative numbering and to eliminate ambiguity arising from the duplication in this supplied draft.
Lack of penalty or dispute mechanisms in the Act. Because the Act does not set out penalties or dispute resolution mechanisms, enforcement will be through the operative tax statutes and State/Territory revenue laws. Parties should not expect the transitional Act to prescribe how disputes are to be resolved.
For each of the above gotchas the precise remedy is factual: document dates, consideration, valuations and lodgment times; check the content of the referenced new Acts and any regulations made under them; preserve documentary evidence of pre‑commencement events; and confirm actual commencements and proclamations to establish which transitional rule applies.
How to comply
If advising Australia Post, Telecom, State/Territory revenue offices or private parties affected by these transitional provisions, the practical compliance checklist below translates the statutory requirements into operational steps grounded in the text:
Determine the applicable commencing day(s)
Identify the commencement proclamation dates for the Australian Postal Corporation Act 1989 and the Australian Telecommunications Corporation Act 1989. The transitional provisions’ temporal scope is anchored to the commencing day(s) (s 60; s 76). Confirm these dates from an authoritative source, because the Act’s transitional tax and stamp duty rules depend on them.
Document pre‑commencement acquisitions, constructions and transactions
For Australia Post matters, prepare a contemporaneous register of assets acquired and constructed before the commencing day and of transactions entered into before that day (s 62-64). Record acquisition/construct dates, contract dates, transfer dates, and any related State/Territory registration dates (particularly motor vehicle registration under s 62(2)).
Securities and related documents
For any security issued by Australia Post before the commencing day, maintain documentation of the issue and of subsequent dealings (issue, redemption, transfer, sale, purchase) together with considerations and valuations. Watch for transfers with little or no consideration, which are excluded from the exemption in s 64.
Tax positions and filings (Income Tax Assessment Act interactions)
For any Australia Post income that falls into a year of income commencing before 1 July 1990, record the treatment as exempt income for the Income Tax Assessment Act 1936 purposes per s 65, and adjust tax‑provisioning and reporting accordingly.
For trading stock held at the beginning of the year of income commencing 1 July 1990, decide whether to exercise valuation options under s 66 and prepare the written notice for the Commissioner of Taxation. Ensure the notice is lodged in writing on or before the date of lodgment of Australia Post’s return for that year, or secure Commissioner approval for a later lodgment day (s 66(2)(a)-(b)). If no notice is lodged, default to cost price (s 66(3)).
For capital gains exposures, identify assets owned at the end of 30 June 1990 and determine market value and indexed cost base or reduced cost base at that changeover time. Apply the deemed disposal and reacquisition mechanics in s 68 to compute potential capital gains or losses on later disposals, and flag disposals within 12 months of actual acquisition for the special rule in s 68(2).
Depreciation accounting
Exclude accelerated depreciation under s 57AL of the Income Tax Assessment Act 1936 for units of property of Australia Post pursuant to s 67 when preparing tax depreciation schedules for those assets.
Employment and HR records
Record continuity of employment by preparing documentation that each employee employed immediately before the commencing day is continued as if engaged under the specified section of the relevant new Act (s 72 for Australia Post referencing s 89 of the new postal Act; s 88 for Telecom referencing s 85 of the new Telecom Act). Ensure payroll, accrued entitlements, long service leave, superannuation arrangements and any contract terms are reconciled to the new Act provisions cited.
Unclaimed moneys and public funds
For amounts already paid into the Unclaimed Moneys Fund under the previous postal statute, treat them as if paid into the Unclaimed Money Fund under the new postal Act (s 73(1)). Where amounts were paid into Consolidated Revenue Fund under the previous Act, treat them as if the previous Act had not been repealed for those purposes (s 73(2)). Coordinate with the Commonwealth finance office for proper accounting entries.
State/Territory liaison
Notify State/Territory revenue offices and registries of the statutory position under s 62-64 for any relevant pre‑commencement matters to avoid inadvertent assessments. For motor vehicles acquired before the commencing day, ensure registration filings and associated paperwork reflect the pre‑commencement acquisition to avoid incorrect stamp duty claims (s 62(2)).
Monitor regulations under the new Acts
Because s 69 and s 85 continue certain prior‑Act liabilities “subject to any regulations made under the new Act,” monitor regulatory instruments made under the Australian Postal Corporation Act 1989 and the Australian Telecommunications Corporation Act 1989. Changes by regulation could alter the operational effect of the preserved prior provisions.
Maintain audit trail and valuation evidence
For all valuation points that determine tax outcomes (market value at changeover time, indexed cost base, reduced cost base, consideration for securities), retain contemporaneous valuation reports, market evidence and accounting records to support positions in the event of tax audits or disputes under the Income Tax Assessment Act 1936.
Reconcile corporate and tax accounting
Ensure that corporate accounting for stock, depreciation, and asset bases is aligned with the tax outcomes mandated by the transitional provisions (s 66-68). Adopt conservative documentation practices and seek Commissioner confirmation where the statutory wording permits discretionary relief (s 66(2)(b)).
Legal cross‑checks
Before relying on the transitional provisions, confirm that there are no later Commonwealth amendments, regulations under the new Acts, or State/Territory rulings that modify the transitional relief. The supplied statutory text contains no amendment history; compliance requires checking the current consolidated statute and any subordinate instruments.
Following these steps will operationalise the statutory protections and obligations the Act creates. The core compliance burdens arise from record‑keeping, timing of elections and lodgments (particularly under s 66), valuation evidence at the specified tax dates, and liaison with State/Territory revenue offices to ensure the practical application of stamp duty exemptions (s 62-64).
62 Stamp duty not payable in relation to certain property etc.
(1) Stamp duty or similar tax is not payable by Australia Post under a law of a State or Territory in relation to property:
(a) acquired by Australia Post before the commencing day; or
(b) constructed by Australia Post before the commencing day.
(2) Without limiting subsection (1), stamp duty or similar tax is not payable under a law of a State or Territory on the registration under a law of the State or Territory of a motor vehicle acquired by Australia Post before the commencing day.
63 Stamp duty not payable in relation to certain transactions
Stamp duty or similar tax is not payable by Australia Post under a law of a State or Territory in relation to a transaction entered into by it before the commencing day.
64 Stamp duty not payable in relation to certain securities etc.
Stamp duty or any similar tax is not payable under a law of a State or Territory in relation to:
(a) a security issued by Australia Post before the commencing day;
(b) the issue, redemption, transfer, sale or purchase of such a security (other than a transaction entered into without consideration or for an inadequate consideration); or
(b) any document executed by or on behalf of Australia Post, or any transaction, in relation to money borrowed by Australia Post before the commencing day.
65 Commencement of Australia Post’s liability to pay income tax
Income derived by Australia Post in a year of income commencing before 1 July 1990 is exempt income for the purposes of the Income Tax Assessment Act 1936.
66 Value of trading stock for income tax purposes
(1) For the purpose of ascertaining under Subdivision B of Division 2 of Part III of the Income Tax Assessment Act 1936 the value to be taken into account at the beginning of the year of income commencing on 1 July 1990 in relation to Australia Post’s trading stock on hand at that time, Australia Post may, in accordance with subsection (2), exercise any option, and give any notice, in relation to the value of its trading stock on hand at the end of the preceding year of income.
(2) The option or notice:
(a) shall be exercised or given in writing to the Commissioner of Taxation; and
(b) shall be lodged with the Commissioner of Taxation on or before the day of lodgment of Australia Post’s return of income for the year of income commencing on 1 July 1990, or before such later day as the Commissioner of Taxation allows.
(3) If Australia Post does not exercise an option under subsection (1) in relation to particular trading stock, the value to be taken into account in accordance with the subsection in relation to that trading stock shall be the cost price.
(4) If Australia Post, under Subdivision B of Division 2 of Part III of the Income Tax Assessment Act 1936, adopts cost price as the basis of valuation in relation to any of its trading stock on hand at the end of the year of income commencing on 1 July 1990 that was on hand at the end of the preceding year of income, the cost price of that trading stock shall be taken to be equal to the value at which the trading stock was taken into account in accordance with subsection (1).
67 Accelerated depreciation not available for income tax purposes
Section 57AL of the Income Tax Assessment Act 1936, 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 Australia Post.
68 Transitional provisions for capital gains tax
(1) Where:
(a) Australia Post owns an asset at the end of 30 June 1990 (in this subsection called the “changeover time”); and
(b) the market value of the asset at the changeover time is greater than the amount that would be the indexed cost base to Australia Post in relation to the asset if Australia Post disposed of the asset at that time;
the following provisions have effect for the purpose of ascertaining under Part IIIA of the Income Tax Assessment Act 1936 whether a capital gain accrues in the event of a subsequent disposal of the asset by it:
(c) Australia Post shall be taken to have disposed of the asset at the changeover time for a consideration equal to the amount of that indexed cost base;
(d) Australia Post shall be taken to have immediately re-acquired the asset for a consideration equal to the market value of the asset at the changeover time;
(e) the reference in subsection 160Z(3) of the Income Tax Assessment Act 1936 to the day on which the asset was acquired by the taxpayer shall be taken to be a reference to the day on which the asset was actually acquired by Australia Post.
(2) If the asset is disposed of within 12 months of its actual acquisition by Australia Post, subsection (1) has effect as if the references in that subsection to the indexed cost base to Australia Post in relation to the asset were references to the cost base to Australia Post in relation to the asset.
(3) Where:
(a) Australia Post owns an asset at the end of 30 June 1990 (in this subsection called the “changeover time”); and
(b) the market value of the asset at the changeover time is less than the amount that would be the reduced cost base to Australia Post in relation to the asset if Australia Post disposed of the asset at that time;
the following provisions have effect for the purpose of ascertaining under Part IIIA of the Income Tax Assessment Act 1936 whether Australia Post incurred a capital loss in the event of a subsequent disposal of the asset by it:
(c) Australia Post shall be taken to have disposed of the asset at the changeover time for a consideration equal to the amount of that reduced cost base;
(d) Australia Post shall be taken to have immediately re-acquired the asset for a consideration equal to the market value of the asset at the changeover time.
(4) Expressions used in this section, and in Part IIIA of the Income Tax Assessment Act 1936, have the same respective meanings as in that Part.
Division 3—Non-taxation matters
69 Certain existing liabilities to the Commonwealth
Subject to any regulations made under the new Act, section 74 of the previous Act, as in force immediately before the commencement of this Part, continues to have effect as if the previous Act had not been repealed.
72 Employment of staff members to continue
Each person who, immediately before the commencing day, was an employee of Australia Post continues to be employed by it as if the person had been engaged under section 89 of the new Act.
73 Unclaimed amounts
(1) Amounts paid into the Unclaimed Moneys Fund kept by Australia Post under section 107 of the previous Act shall be dealt with as if they had been paid into the Unclaimed Money Fund kept under section 98 of the new Act.
(2) Amounts paid into the Consolidated Revenue Fund under section 107 of the previous Act shall be dealt with as if that Act had not been repealed.
Part 10—Transitional provisions, amendments and repeals relating to Telecom
Division 1—Interpretation
76 Interpretation—definitions
In this Part:
commencing day means the day on which the new Act commences.
new Act means the Australian Telecommunications Corporation Act 1989.
previous Act means the Telecommunications Act 1975.
77 Interpretation—expressions used in new Act
Unless the contrary intention appears, expressions used in this Part, and in the new Act, have the same respective meanings as in that Act.
Division 3—Non-taxation matters
85 Certain existing liabilities to the Commonwealth
Subject to any regulations made under the new Act, section 71 of the old Act, as in force immediately before the commencement of this Part, continues to have effect as if the previous Act had not been repealed.
88 Employment of staff members to continue
Each person who, immediately before the commencing day, was an employee of Telecom continues to be employed by it as if the person had been engaged under section 85 of the new Act.
Division 1 Interpretation
An Act to enact certain transitional provisions, make certain amendments, and effect certain repeals, in consequence of the enactment of the Telecommunications Act 1989, the Australian Postal Corporation Act 1989 and the Australian Telecommunications Corporation Act 1989, and for other purposes
Part 1—Preliminary
1 Short title
This Act may be cited as the Telecommunications and Postal Services (Transitional Provisions and Consequential Amendments) Act 1989.
2 Commencement
(1) Subject to this section, this Act commences on a day or days to be fixed by Proclamation.
(2) Sections 1 and 2 commence on the day on which this Act receives the Royal Assent.
(4) If a provision of this Act (other than section 1 or 2) does not commence under subsection (1) within the period of 6 months beginning on the day on which this Act receives the Royal Assent, it commences on the first day after the end of that period.
Part 9—Transitional provisions, amendments and repeals relating to Australia Post
Division 1—Interpretation
60 Interpretation—definitions
In this Part:
commencing day means the day on which the new Act commences.
new Act means the Australian Postal Corporation Act 1989.
previous Act means the Postal Services Act 1975.
61 Interpretation—expressions used in new Act
Unless the contrary intention appears, expressions used in this Part, and in the new Act, have the same respective meanings as in that Act.
Division 2—Taxation matters
62 Stamp duty not payable in relation to certain property etc.
(1) Stamp duty or similar tax is not payable by Australia Post under a law of a State or Territory in relation to property:
(a) acquired by Australia Post before the commencing day; or
(b) constructed by Australia Post before the commencing day.
(2) Without limiting subsection (1), stamp duty or similar tax is not payable under a law of a State or Territory on the registration under a law of the State or Territory of a motor vehicle acquired by Australia Post before the commencing day.
63 Stamp duty not payable in relation to certain transactions
Stamp duty or similar tax is not payable by Australia Post under a law of a State or Territory in relation to a transaction entered into by it before the commencing day.
64 Stamp duty not payable in relation to certain securities etc.
Stamp duty or any similar tax is not payable under a law of a State or Territory in relation to:
(a) a security issued by Australia Post before the commencing day;
(b) the issue, redemption, transfer, sale or purchase of such a security (other than a transaction entered into without consideration or for an inadequate consideration); or
(b) any document executed by or on behalf of Australia Post, or any transaction, in relation to money borrowed by Australia Post before the commencing day.
65 Commencement of Australia Post’s liability to pay income tax
Income derived by Australia Post in a year of income commencing before 1 July 1990 is exempt income for the purposes of the Income Tax Assessment Act 1936.
66 Value of trading stock for income tax purposes
(1) For the purpose of ascertaining under Subdivision B of Division 2 of Part III of the Income Tax Assessment Act 1936 the value to be taken into account at the beginning of the year of income commencing on 1 July 1990 in relation to Australia Post’s trading stock on hand at that time, Australia Post may, in accordance with subsection (2), exercise any option, and give any notice, in relation to the value of its trading stock on hand at the end of the preceding year of income.
(2) The option or notice:
(a) shall be exercised or given in writing to the Commissioner of Taxation; and
(b) shall be lodged with the Commissioner of Taxation on or before the day of lodgment of Australia Post’s return of income for the year of income commencing on 1 July 1990, or before such later day as the Commissioner of Taxation allows.
(3) If Australia Post does not exercise an option under subsection (1) in relation to particular trading stock, the value to be taken into account in accordance with the subsection in relation to that trading stock shall be the cost price.
(4) If Australia Post, under Subdivision B of Division 2 of Part III of the Income Tax Assessment Act 1936, adopts cost price as the basis of valuation in relation to any of its trading stock on hand at the end of the year of income commencing on 1 July 1990 that was on hand at the end of the preceding year of income, the cost price of that trading stock shall be taken to be equal to the value at which the trading stock was taken into account in accordance with subsection (1).
67 Accelerated depreciation not available for income tax purposes
Section 57AL of the Income Tax Assessment Act 1936, 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 Australia Post.
68 Transitional provisions for capital gains tax
(1) Where:
(a) Australia Post owns an asset at the end of 30 June 1990 (in this subsection called the “changeover time”); and
(b) the market value of the asset at the changeover time is greater than the amount that would be the indexed cost base to Australia Post in relation to the asset if Australia Post disposed of the asset at that time;
the following provisions have effect for the pur
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