Contents
Chapter 1—Introduction and core provisions 1
Part 1-1—Preliminary 1
Division 1—Preliminary 2
1-1 Short title.................................................................................................... 2
1-2 Commencement.......................................................................................... 2
1-3 Differences in style not to affect meaning................................................... 2
Part 1-2—A Guide to this Act 3
Division 2—How to use this Act 3
Subdivision 2-A—How to find your way around 3
2-1 The design.................................................................................................. 3
Subdivision 2-B—How the Act is arranged 4
2-5 The pyramid............................................................................................... 4
Subdivision 2-C—How to identify defined terms and find the definitions 5
2-10 When defined terms are identified............................................................ 5
2-15 When terms are not identified................................................................... 5
2-20 Identifying the defined term in a definition............................................... 6
Subdivision 2-D—The numbering system 7
2-25 Purposes................................................................................................... 7
2-30 Gaps in the numbering............................................................................. 7
Subdivision 2-E—Status of Guides and other non-operative material 8
2-35 Non-operative material............................................................................. 8
2-40 Guides...................................................................................................... 8
2-45 Other material........................................................................................... 8
Division 3—What this Act is about 9
Table of sections................................................................................................ 9
3-1 What this Act is about................................................................................ 9
3-5 Annual income tax...................................................................................... 9
3-10 Your other obligations as a taxpayer...................................................... 11
3-15 Your obligations other than as a taxpayer.............................................. 11
Part 1-3—Core provisions 12
Division 4—How to work out the income tax payable on your taxable income 12
4-1 Who must pay income tax........................................................................ 12
4-5 Meaning of you........................................................................................ 12
4-10 How to work out how much income tax you must pay.......................... 13
4-15 How to work out your taxable income................................................... 15
Division 6—Assessable income and exempt income 17
Guide to Division 6 17
6-1 Diagram showing relationships among concepts in this Division............ 18
Operative provisions 19
6-5 Income according to ordinary concepts (ordinary income)...................... 19
6-10 Other assessable income (statutory income)........................................... 19
6-15 What is not assessable income................................................................ 20
6-20 Exempt income....................................................................................... 21
6-25 Relationships among various rules about ordinary income..................... 22
Division 8—Deductions 23
8-1 General deductions................................................................................... 23
8-5 Specific deductions................................................................................... 23
8-10 No double deductions............................................................................. 24
Part 1-4—Checklists of what is covered by concepts used in the core provisions 25
Division 9—Entities that must pay income tax 25
9-1 List of entities........................................................................................... 25
9-5 Entities that work out their income tax by reference to something other than taxable income 26
Division 10—Particular kinds of assessable income 28
10-5 List of provisions about assessable income............................................ 28
Division 11—Lists of classes of exempt income 42
11-1 Overview................................................................................................ 42
11-5 Entities that are exempt, no matter what kind of ordinary or statutory income they have 42
11-10 Ordinary or statutory income which is exempt, no matter whose it is.. 45
11-15 Ordinary or statutory income which is exempt only if it is derived by certain entities 46
Division 12—Particular kinds of deductions 51
12-5 List of provisions about deductions........................................................ 51
Division 13—Tax offsets 72
13-1 List of tax offsets.................................................................................... 72
Chapter 2—Liability rules of general application 78
Part 2-5—Rules about deductibility of particular kinds of amounts 78
Division 26—Some amounts you cannot deduct, or cannot deduct in full 78
26-55 Limit on deductions.............................................................................. 78
Division 28—Car expenses 80
Guide to Division 28 80
28-1 What this Division is about.................................................................... 80
28-5 Map of this Division.............................................................................. 81
Subdivision 28-A—Deductions for car expenses 82
28-10 Application of Division 28................................................................... 82
28-12 Car expenses........................................................................................ 82
28-13 Meaning of car expense....................................................................... 82
Subdivision 28-B—Choosing which method to use 83
Guide to Subdivision 28-B 83
28-14 What this Subdivision is about............................................................. 83
28-15 Choosing among the 4 methods........................................................... 83
Operative provision 85
28-20 Rules governing choice of method....................................................... 85
Subdivision 28-C—The “cents per kilometre” method 85
28-25 How to calculate your deduction.......................................................... 85
28-30 Depreciation......................................................................................... 86
28-35 Substantiation....................................................................................... 86
Subdivision 28-D—The “12% of original value” method 86
28-45 How to calculate your deduction.......................................................... 87
28-50 Eligibility.............................................................................................. 87
28-55 Depreciation......................................................................................... 88
28-60 Substantiation....................................................................................... 88
Subdivision 28-E—The “one-third of actual expenses” method 88
28-70 How to calculate your deduction.......................................................... 88
28-75 Eligibility.............................................................................................. 89
28-80 Substantiation....................................................................................... 89
Subdivision 28-F—The “log book” method 89
28-90 How to calculate your deduction.......................................................... 89
28-95 Eligibility.............................................................................................. 91
28-100 Substantiation..................................................................................... 91
Subdivision 28-G—Keeping a log book 92
Guide to Subdivision 28-G 92
28-105 What this Subdivision is about........................................................... 92
28-110 Steps for keeping a log book.............................................................. 93
Operative provisions 93
28-115 Income years for which you need to keep a log book......................... 93
28-120 Choosing the 12 week period for a log book...................................... 94
28-125 How to keep a log book..................................................................... 94
28-130 Replacing one car with another........................................................... 95
Subdivision 28-H—Odometer records for a period 96
Guide to Subdivision 28-H 96
28-135 What this Subdivision is about........................................................... 96
Operative provision 97
28-140 How to keep odometer records for a car for a period......................... 97
Subdivision 28-I—Retaining the log book and odometer records 98
28-150 Retaining the log book for the retention period................................... 98
28-155 Retaining odometer records................................................................ 99
Subdivision 28-J—Situations where you cannot use, or don’t need to use, one of the 4 methods 100
Guide to Subdivision 28-J 100
28-160 What this Subdivision is about......................................................... 100
Operative provisions 100
28-165 Exception for particular cars taken on hire........................................ 100
28-170 Exception for particular cars used in particular ways........................ 101
28-175 Further miscellaneous exceptions..................................................... 103
28-180 Car expenses related to award transport payments........................... 104
28-185 Application of Subdivision 28-J to PAYE earners and the entities that pay them 105
Division 36—Tax losses of earlier income years 106
Guide to Division 36 106
36-1 What this Division is about.................................................................. 106
Subdivision 36-A—Deductions for tax losses of earlier income years 106
36-10 How to calculate a tax loss for an income year................................... 106
36-15 How to deduct tax losses.................................................................... 107
36-20 Net exempt income............................................................................. 108
36-25 Special rules about tax losses............................................................. 110
Subdivision 36-B—Effect of you becoming bankrupt 112
Guide to Subdivision 36-B 112
36-30 What this Subdivision is about........................................................... 112
Operative provisions 113
36-35 No deduction for tax loss incurred before bankruptcy........................ 113
36-40 Deduction for amounts paid for debts incurred before bankruptcy..... 113
36-45 Limit on deductions for amounts paid................................................ 114
Part 2-10—Capital allowances: rules about deductibility of capital expenditure 116
Division 40—Overview of capital allowances 116
Guide to Division 40 116
40-1 What this Division is about.................................................................. 116
40-5 Map of Divisions 40 and 41................................................................. 117
Subdivision 40-A—What a capital allowance is 118
40-7 Effect of this Division.......................................................................... 118
40-10 What expenditure qualifies?................................................................ 118
40-15 Who may deduct?............................................................................... 118
40-20 How to work out the deduction.......................................................... 119
40-25 Disposal, loss, destruction or termination of use: balancing adjustment 119
Subdivision 40-B—Summary and finding table 121
40-30 Table of capital allowances................................................................. 121
Division 41—Common rules for capital allowances 128
Guide to Division 41 128
41-1 What this Division is about.................................................................. 128
41-5 Summary and finding table................................................................... 128
Subdivision 41-A—Common rule 1 (Roll-over relief for related entities) 130
Guide to Common rule 1 130
41-10 What this Common rule is about........................................................ 130
Operative provisions 130
41-15 When is roll-over relief available?...................................................... 130
41-20 Disposals of property......................................................................... 131
41-25 How are the balancing adjustment provisions affected?..................... 132
41-30 What is the effect of the roll-over on the transferor’s and transferee’s entitlement to a deduction? 132
41-35 Subsequent applications of this Common rule—relief available even if subsequent transferor got no deduction 133
41-40 Subsequent disposal—modify the balancing adjustment accordingly. 133
41-45 Commissioner may amend assessment after recoupment despite section 170 of the Income Tax Assessment Act 1936 134
Subdivision 41-B—Common rule 2 (Non-arm’s length transactions) 135
41-65 Non-arm’s length transactions............................................................ 135
Subdivision 41-C—Common rule 3 (Anti-avoidance provisions relating to the ownership of property) 136
41-85 You are taken to be owner of property for purposes of certain anti-avoidance provisions 136
Division 43—Deductions for capital works 137
Guide to Division 43 137
43-1 What this Division is about.................................................................. 137
43-2 Key concepts used in this Division....................................................... 137
Subdivision 43-A—Key operative provisions 139
Guide to Subdivision 43-A 139
43-5 What this Subdivision is about............................................................. 139
Operative provisions 139
43-10 Deductions for capital works.............................................................. 139
43-15 Amount you can deduct...................................................................... 140
43-20 Capital works to which this Division applies................................ 140
43-25 Rate of deduction................................................................................ 142
43-30 No deduction until construction is complete....................................... 142
43-35 Requirement for body corporate to be registered under the Industry Research and Development Act 143
43-40 Deduction for destruction of capital works..................................... 143
43-45 Application of Division 41 common rules.......................................... 144
43-50 Links and signposts to other parts of the Act..................................... 144
43-55 Anti-avoidance—arrangement etc. with tax-exempt entity.................. 145
Subdivision 43-B—Establishing the deduction base 146
Guide to Subdivision 43-B 146
43-60 What this Subdivision is about........................................................... 146
43-65 Explanatory material........................................................................... 147
Operative provisions 147
43-70 What is construction expenditure?...................................................... 147
43-75 Construction expenditure area............................................................ 148
43-80 When capital works begin.................................................................. 150
43-85 Pools of construction expenditure...................................................... 151
43-90 Table of intended use at time of completion of construction......... 152
43-95 Meaning of hotel building and apartment building............................ 155
43-100 Certificates by Industry Research and Development Board.............. 156
Subdivision 43-C—Your area and your construction expenditure 156
Guide to Subdivision 43-C 156
43-105 What this Subdivision is about......................................................... 156
43-110 Explanatory material......................................................................... 157
Operative provisions 157
43-115 Your area and your construction expenditure—owners................... 157
43-120 Your area and your construction expenditure—lessees and quasi-ownership right holders 158
43-125 Lessees’ or right holders’ pools can revert to owner........................ 159
43-130 Identifying your area on acquisition or disposal............................... 159
Subdivision 43-D—Deductible uses of capital works 160
Guide to Subdivision 43-D 160
43-135 What this Subdivision is about......................................................... 160
Operative provisions 160
43-140 Using your area in a deductible way................................................. 160
43-145 Using your area in the 4% manner................................................... 164
43-150 Meaning of industrial activities........................................................ 168
Subdivision 43-E—Special rules about uses 170
Guide to Subdivision 43-E 170
43-155 What this Subdivision is about......................................................... 170
Operative provisions 171
43-160 Your area is used for a purpose if it is maintained ready for use for the purpose 171
43-165 Temporary cessation of use.......................................................... 172
43-170 Own use—capital works other than hotel and apartment buildings.. 172
43-175 Own use—hotel and apartment buildings......................................... 173
43-180 Special rules for hotel and apartment buildings................................ 173
43-185 Residential or display use................................................................. 175
43-190 Use of facilities not commonly provided, and of certain buildings used to operate a hotel, motel or guest house 176
43-195 Use for research and development activities must be in connection with a business 177
Subdivision 43-F—Calculation of deduction 177
Guide to Subdivision 43-F 177
43-200 What this Subdivision is about......................................................... 177
43-205 Explanatory material......................................................................... 178
Operative provisions 179
43-210 Deduction for capital works begun after 26 February 1992............. 179
43-215 Deduction for capital works begun before 27 February 1992.......... 181
43-220 Capital works taken to have begun earlier for certain purposes........ 182
Subdivision 43-G—Undeducted construction expenditure 183
Guide to Subdivision 43-G 183
43-225 What this Subdivision is about......................................................... 183
Operative provisions 184
43-230 Calculating undeducted construction expenditure—common step.... 184
43-235 Post‑26 February 1992 undeducted construction expenditure.......... 185
43-240 Pre‑27 February 1992 undeducted construction expenditure............ 186
Subdivision 43-H—Balancing deduction on destruction of capital works 186
Guide to Subdivision 43-H 186
43-245 What this Subdivision is about......................................................... 186
Operative provisions 187
43-250 The amount of the balancing deduction............................................ 187
43-255 Amounts received or receivable........................................................ 188
43-260 Apportioning amounts received for destruction................................ 188
Chapter 3—Specialist liability rules 189
Part 3-5—Corporate taxpayers and corporate distributions 189
Division 165—Income tax consequences of changing ownership or control of a company 189
Guide to Division 165 190
165-1 What this Division is about................................................................ 190
Subdivision 165-A—Deducting tax losses of earlier income years 190
Guide to Subdivision 165-A 190
165-5 What this Subdivision is about........................................................... 190
Operative provisions 191
165-10 To deduct a tax loss.......................................................................... 191
165-12 Company must maintain the same owners........................................ 191
165-13 Alternatively, company must carry on same business...................... 192
165-15 Same people must control the voting power, or company must carry on same business 193
165-20 When company can deduct part of a tax loss................................... 194
Subdivision 165-B—Working out the taxable income and tax loss for the income year of the change 194
Guide to Subdivision 165-B 194
165-23 What this Subdivision is about......................................................... 194
165-25 Summary of this Subdivision........................................................... 195
165-30 Flow chart showing the application of this Subdivision................... 197
When a company must work out its taxable income and tax loss under this Subdivision 198
165-35 On a change of ownership, unless the company carries on the same business 198
165-37 Who has more than a 50% stake in the company during a period..... 198
165-40 On a change of control of voting power in the company, unless the company carries on the same business 199
Working out the company’s taxable income 200
165-45 First, divide the income year into periods......................................... 200
165-50 Next, calculate the notional loss or notional taxable income for each period 201
165-55 How to attribute deductions to periods............................................. 201
165-60 How to attribute assessable income to periods................................. 204
165-65 How to calculate the company’s taxable income for the income year 205
Working out the company’s tax loss 206
165-70 How to calculate the company’s tax loss for the income year........... 206
165-75 How to calculate the company’s notional loss or notional taxable income for a period when the company was a partner 207
165-80 How to calculate the company’s share of a partnership’s notional loss or notional net income for a period if both entities have the same income year............................................................................ 208
165-85 How to calculate the company’s share of a partnership’s notional loss or notional net income for a period if the entities have different income years..................................................................... 209
165-90 Company’s full year deductions include a share of partnership’s full year deductions 210
Subdivision 165-D—Tests for finding out whether the company has maintained the same owners 211
The primary and alternative tests 211
165-150 Who has more than 50% of the voting power in the company during a period 211
165-155 Who has rights to more than 50% of the company’s dividends during a period 212
165-160 Who has rights to more than 50% of the company’s capital distributions during a period 213
165-165 Rules about the primary test for a condition................................... 213
165-175 Tests can be satisfied by a single person........................................ 214
Rules affecting the operation of the tests 214
165-180 Arrangements affecting beneficial ownership of shares................. 214
165-185 Shares treated as never having carried rights.................................. 214
165-190 Shares treated as always having carried rights................................ 215
165-195 Disregard redeemable shares.......................................................... 215
165-200 Rules do not affect totals of shares or rights................................... 216
165-205 Death of beneficial owner............................................................... 216
Subdivision 165-E—The same business test 216
165-210 The test........................................................................................... 216
Division 166—Income tax consequences of changing ownership or control of a listed public company 218
Guide to Division 166 218
166-1 What this Division is about................................................................ 218
Subdivision 166-A—Deducting tax losses of earlier income years 219
166-5 How Subdivision 165-A applies to a listed public company.............. 219
166-10 How Subdivision 165-A applies to a 100% subsidiary of a listed public company 221
166-15 Companies can choose that this Subdivision is not to apply to them 222
Subdivision 166-B—Working out the taxable income and tax loss for the income year of the change 222
166-20 How Subdivision 165-B applies to a listed public company............ 222
166-25 How to work out the taxable income and tax loss............................ 224
166-30 How Subdivision 165-B applies to 100% subsidiary of a listed public company 225
166-35 Companies can choose that this Subdivision is not to apply to them 225
Subdivision 166-D—Tests for finding out whether the listed public company has maintained the same owners 226
Guide to Subdivision 166-D 226
166-140 What this Subdivision is about....................................................... 226
Substantial continuity of ownership 227
166-145 Substantial continuity of ownership............................................... 227
The ownership tests 228
166-150 Who has more than 50% of the voting power in the listed public company at a particular time 228
166-155 Who has rights to more than 50% of the listed public company’s dividends at a particular time 228
166-160 Who has rights to more than 50% of the listed public company’s capital distributions at a particular time 229
Rules affecting the operation of the ownership tests 229
166-165 Rules in Division 165 apply........................................................... 229
Subdivision 166-F—How to treat shareholdings of less than 1% 231
Guide to Subdivision 166-F 231
166-215 What this Subdivision is about....................................................... 231
Special tracing rules for listed public companies 232
166-220 Shareholdings of less than 1% in the listed public company.......... 232
166-225 Shareholdings of less than 1% in an interposed listed public company 232
166-230 Notional shareholder...................................................................... 233
166-235 Notional shareholder taken to have minimum voting control, dividend rights and capital rights 235
166-240 Voting, dividend and capital shareholding of less than 1%............ 236
166-245 Shares that are part of a substantial shareholding........................... 237
When the rules in this Subdivision do not apply 238
166-250 Limit on listed public company splitting its shares into different classes 238
166-255 If listed public company would not have otherwise passed the ownership tests 238
Subdivision 166-G—How to treat interposed superannuation funds, approved deposit funds and special companies 239
Guide to this Subdivision 239
166-260 What this Subdivision is about....................................................... 239
Special tracing rules for listed public companies 240
166-265 When fund or special company is taken to control voting power... 240
166-270 When fund or special company is taken to have rights to dividends and capital 241
Division 170—Treatment of company groups for income tax purposes 243
Subdivision 170-A—Transfer of tax losses within wholly-owned groups of companies 243
Guide to Subdivision 170-A 243
170-1 What this Subdivision is about........................................................... 243
170-5 Basic principles for transferring tax losses......................................... 244
170-10 When a company can transfer a tax loss........................................... 245
170-15 Income company is taken to have incurred transferred loss.............. 245
170-20 Who can deduct transferred loss....................................................... 245
170-25 Tax treatment of payment for transferred tax loss............................. 246
170-30 Companies must be in existence and members of the same wholly-owned group 246
170-35 The loss company............................................................................. 246
170-40 The income company........................................................................ 247
170-45 Maximum amount that can be transferred......................................... 248
170-50 Transfer by written agreement.......................................................... 250
170-55 Losses must be transferred in order they are incurred...................... 250
170-60 Income company cannot transfer transferred tax loss....................... 251
170-65 Agreement transfers as much as can be transferred.......................... 251
170-70 Amendment of assessments............................................................. 251
Division 175—Use of a company’s tax losses or deductions to avoid income tax 252
Guide to Division 175 252
175-1 What this Division is about................................................................ 252
Subdivision 175-A—Tax benefits from unused tax losses 252
175-5 When Commissioner can disallow deduction for tax loss.................. 253
175-10 First case: income injected into company because of available tax loss 253
175-15 Second case: someone else obtains a tax benefit because of tax loss available to company 254
Subdivision 175-B—Tax benefits from unused deductions 255
175-20 Income injected into company because of available deductions........ 255
175-25 Deduction injected into company because of available income......... 256
175-30 Someone else obtains a tax benefit because of a deduction or income available to company 256
175-35 Tax loss resulting from disallowed deductions................................. 258
Subdivision 175-D—Shareholding interest in the company 259
175-65 When a person has a shareholding interest in the company.............. 259
Division 195—Special types of company 260
Subdivision 195-A—Pooled development funds (PDFs) 260
Guide to Subdivision 195-A 260
195-1 What this Subdivision is about........................................................... 260
Working out a PDF’s taxable income and tax loss 260
195-5 Deductibility of PDF tax losses.......................................................... 260
195-10 PDF cannot transfer tax loss............................................................ 261
195-15 Tax loss for year in which company becomes a PDF....................... 261
Part 3-45—Rules for particular industries and occupations 263
Division 330—Mining and quarrying 263
Guide to Division 330 264
330-1 What this Division is about............................................................... 264
330-5 How petroleum mining is treated........................................................ 264
330-10 Diagram—the stages of mining........................................................ 264
Subdivision 330-A—Exploration and prospecting 267
330-15 Deduction for exploration or prospecting expenditure...................... 267
330-20 Meaning of exploration or prospecting............................................ 269
330-25 Meaning of minerals, petroleum and quarry materials................... 270
330-30 Meaning of eligible mining or quarrying operations....................... 270
330-35 No deduction for amount “transferred” by seller of right or information 271
330-40 Election that section 330-15 not apply to plant................................. 271
Subdivision 330-B—Exempt income from the sale of rights to mine 272
330-60 Genuine prospector exemption for ordinary income derived from the sale of rights to mine 272
Subdivision 330-C—Development and operation of a mine or quarry 274
330-80 Allowable capital expenditure is deductible...................................... 274
330-85 What is allowable capital expenditure?............................................ 275
330-90 Housing and welfare in mining........................................................ 276
330-95 Expenditure that is not allowable capital expenditure....................... 276
330-100 How much is deductible over how long?....................................... 277
330-105 Meaning of unrecouped expenditure.............................................. 280
330-110 Expenditure that does not relate to a mining property, quarrying property or petroleum field 281
330-115 Apportioning between mining and quarrying................................. 282
330-120 Resuming use of property for qualifying purposes........................ 282
330-125 Each mining property, quarrying property or petroleum field is separate from any other 282
Subdivision 330-D—Cash bidding 283
Guide to Subdivision 330-D 283
330-145 What this Subdivision is about....................................................... 283
Operative provisions 284
330-150 Mining cash bidding payments....................................................... 284
330-155 Meaning of mining cash bidding payment and mining authority... 285
330-160 Exploration or prospecting cash bidding payments made when mining authority has been granted 285
330-165 Meaning of exploration or prospecting cash bidding payment and exploration or prospecting authority 286
330-170 Exploration or prospecting cash bidding payments made before mining authority has been granted 286
330-175 Meaning of entitlement to an eligible cash bidding amount........... 287
330-180 Transfer of entitlement to an eligible cash bidding amount............. 288
330-185 Limit on amount............................................................................. 288
330-190 Time limit on agreement................................................................. 289
330-195 Agreement must be in writing and signed...................................... 289
330-200 When a mining authority is related to an exploration or prospecting authority 289
330-205 Meaning of retention authority....................................................... 290
330-210 When a retention authority is related to an exploration or prospecting authority 290
330-215 Effect of renewal of authority......................................................... 290
Subdivision 330-E—Selling a right or information 290
330-235 Buyer and seller may agree to include allowable capital expenditure 291
330-240 Meaning of mining, quarrying or prospecting right and mining, quarrying or prospecting information 291
330-245 Limit on amount that can be included in the agreement................... 292
330-250 Capital expenditure on buildings or other improvements only counts toward the limit if buyer gets rights to them 293
330-255 Time limit on agreement................................................................. 294
330-260 Agreement must be signed and in writing...................................... 294
330-265 Election under subsection 88B(5) of the Income Tax Assessment Act 1936 voids agreement 294
330-270 Agreement results in seller giving up further deductions................ 294
330-275 Apportionment between mining and quarrying.............................. 295
Subdivision 330-F—Excess deductions 295
Guide to Subdivision 330-F 295
330-295 What this Subdivision is about....................................................... 295
Operative provisions 296
330-300 Limit on amounts deductible under Subdivision 330-C for the income year 296
330-305 Limit on amounts deductible under Subdivision 330-A for the income year 297
330-310 Excess amount deductible for the next income year........................ 297
330-315 Election not to limit amounts deductible under Subdivision 330-A or 330-C 299
330-320 Excess amount not deductible for certain property......................... 300
330-325 Excess amount not deductible if specified in a section 330‑235 agreement 300
330-330 Excess amount set off against income exempt under section 330-60 301
Subdivision 330-G—Petroleum resource rent tax payments 302
330-350 Payments of petroleum resource rent tax........................................ 302
Subdivision 330-H—Transporting the product 303
330-370 Transport capital expenditure is deductible..................................... 303
330-375 Meaning of transport capital expenditure...................................... 304
330-380 Meaning of transport facility and public body................................ 305
330-385 Meaning of mining or quarrying transport................................... 305
330-390 Meaning of processed materials, treatment and concentration...... 305
330-395 How much is deductible over how long?....................................... 306
330-400 What if you stop using property for mining or quarrying transport? 307
330-405 Resuming use of property for mining or quarrying transport......... 307
330-410 Apportionment between mining and quarrying.............................. 308
330-415 No double deductions for port or other ship facility....................... 308
Subdivision 330-I—Rehabilitating the site 308
330-435 Deduction for expenditure on rehabilitation.................................... 309
330-440 Meaning of rehabilitation............................................................... 309
330-445 Meaning of ancillary activities and eligible building site................ 310
330-450 No deduction for certain expenditure.............................................. 310
330-455 Property used for rehabilitation taken to be used for the purpose of producing assessable income 311
Subdivision 330-J—Balancing adjustment 311
Guide to Subdivision 330-J 311
330-475 What this Subdivision is about....................................................... 311
Operative provisions 312
330-480 When a balancing adjustment is required........................................ 312
330-485 How to do the adjustment............................................................... 314
330-490 Meaning of termination value........................................................ 315
330-495 Meaning of written down value...................................................... 315
330-500 What if there is a disposal of part of an interest in property?.......... 316
Subdivision 330-K—Partial change of ownership 316
330-520 Partial change of ownership........................................................... 316
Subdivision 330-L—Modification of Common rules 318
330-540 Which Common rules apply........................................................... 318
330-545 Modification to Common rule 1 (Roll-over relief for related entities) 318
330-547 Roll-over relief............................................................................... 319
330-550 Transferee inherits certain characteristics from transferor............... 320
330-555 Leases: subsection 88B(5) of the Income Tax Assessment Act 1936 election has no effect 321
330-560 Modification to Common rule 2 (Non-arm’s length transactions).. 321
Subdivision 330-M—Special situations 322
Guide to Subdivision 330-M 322
330-580 What this Subdivision is about....................................................... 322
Operative provisions 323
330-585 Recoupment of capital expenditure................................................. 323
330-590 Deductions under this Division take priority over other deductions 323
330-595 Mining, quarrying or prospecting—getting someone else to do the work 324
330-600 No deduction for petroleum income sharing................................... 325
330-605 No deduction for paying transferees or sub-lessees of mining, quarrying or prospecting rights 326
Division 375—Australian films 327
Subdivision 375-G—Film losses 327
Guide to Subdivision 375-G 327
375-800 What this Subdivision is about....................................................... 327
Operative provisions 327
375-805 Does your tax loss have a film component?................................... 327
375-810 What is a film loss?........................................................................ 329
375-815 Deductibility of film losses............................................................. 329
375-820 Order in which tax losses are to be deducted.................................. 329
Chapter 4—Collection and recovery of income tax (and some other taxes) 330
Part 4-5—Collection of income tax instalments 330
Division 750—Guide to Part 4-5 330
750-1 What this Part is about.................................................................. 330
750-5 What instalments of income tax do you have to pay?......................... 330
750-10 Instalments collected periodically..................................................... 331
750-15 Instalments collected in respect of particular transactions................. 331
750-20 What happens if your income tax is less than the instalments you have paid? How do you get a refund? 332
Part 4-10—Withholding taxes: liability and collection provisions 333
Division 765—Withholding tax on dividends, interest and royalties 333
Guide to Division 765 333
765-1 What this Division is about................................................................ 333
765-5 Where to find the rules about the withholding tax.............................. 333
Division 766—Withholding tax on payments for mining operations on Aboriginal land 334
Guide to Division 766 334
766-1 What this Division is about................................................................ 334
766-5 Where to find the rules about the withholding tax.............................. 334
Division 767—Interest paid by companies on bearer debentures 335
Guide to Division 767 335
767-1 What this Division is about................................................................ 335
767-5 Where to find the rules about the tax.................................................. 335
Division 768—Withholding tax on income notionally accruing under certain deferred interest investments 336
Guide to Division 768 336
768-1 What this Division is about................................................................ 336
768-5 Where to find the rules about the withholding tax.............................. 336
Part 4-30—Collecting Medicare levy and HECS with income tax 337
Division 785—Medicare levy 337
Guide to Division 785 337
785-1 What this Division is about................................................................ 337
785-5 Where to find the rules about Medicare levy...................................... 337
Division 786—HECS (Higher Education Contribution Scheme) 338
Guide to Division 786 338
786-1 What this Division is about................................................................ 338
786-5 Where to find the rules about repaying HECS contributions.............. 338
Chapter 5—Administration 339
Part 5-30—Record-keeping and other obligations 339
Division 900—Substantiation rules 339
Guide to Division 900 339
900-1 What this Division is about................................................................ 339
Subdivision 900-A—Application of Division 340
900-5 Application of the requirements of Division 900................................ 340
900-10 Substantiation requirement............................................................... 340
900-12 Application of Division 900 to PAYE earners and the entities that pay them 341
Subdivision 900-B—Substantiating work expenses 342
900-15 Getting written evidence................................................................... 342
900-20 Keeping travel records...................................................................... 343
900-25 Retaining the written evidence and travel records............................. 343
900-30 Meaning of work expense................................................................. 343
900-35 Exception for small total of expenses............................................... 345
900-40 Exception for laundry expenses below a certain limit....................... 346
900-45 Exception for work expense related to award transport payment...... 346
900-50 Exception for domestic travel allowance expenses........................... 347
900-55 Exception for overseas travel allowance expenses............................ 347
900-60 Exception for reasonable overtime meal allowance........................... 348
900-65 Crew members on international flights need not keep travel records 348
Subdivision 900-C—Substantiating car expenses 348
900-70 Getting written evidence................................................................... 348
900-75 Retaining the written evidence and odometer records....................... 349
Subdivision 900-D—Substantiating business travel expenses 350
900-80 Getting written evidence................................................................... 350
900-85 Keeping travel records...................................................................... 350
900-90 Retaining the written evidence and travel records............................. 351
900-95 Meaning of business travel expense................................................. 351
Subdivision 900-E—Written evidence 352
Guide to Subdivision 900-E 352
900-100 What this Subdivision is about....................................................... 352
Operative provisions 353
900-105 Ways of getting written evidence.................................................... 353
900-110 Time limits...................................................................................... 353
900-115 Written evidence from supplier....................................................... 354
900-120 Written evidence of depreciation expense....................................... 354
900-125 Evidence of small expenses............................................................ 355
900-130 Evidence of expenses considered otherwise too hard to substantiate 356
900-135 Evidence on a group certificate....................................................... 356
Subdivision 900-F—Travel records 357
Guide to Subdivision 900-F 357
900-140 What this Subdivision is about....................................................... 357
900-145 Purpose of a travel record............................................................... 357
Operative provisions 357
900-150 Recording activities in travel records.............................................. 357
900-155 Showing which of your activities were income-producing activities 358
Subdivision 900-G—Retaining and producing records 358
Guide to Subdivision 900-G 358
900-160 What this Subdivision is about....................................................... 358
900-165 The retention period........................................................................ 359
Operative provisions 359
900-170 Extending the retention period if an expense is disputed................ 359
900-175 Commissioner may tell you to produce your records..................... 359
900-180 How to comply with a notice.......................................................... 359
900-185 What happens if you don’t comply................................................. 360
Subdivision 900-H—Relief from effects of failing to substantiate 360
900-195 Commissioner’s discretion to review failure to substantiate........... 360
900-200 Reasonable expectation that substantiation would not be required.. 361
900-205 What if your documents are lost or destroyed?............................... 361
Subdivision 900-I—Award transport payments 362
Guide to Subdivision 900-I 362
900-210 What this Subdivision is about....................................................... 362
Operative provisions 362
900-215 Deducting an expense related to an award transport payment......... 362
900-220 Definition of award transport payment......................................... 363
900-225 Substituted industrial instruments................................................... 364
900-230 Changes to industrial instruments applied for before 29 October 1986 364
900-235 Changes to industrial instruments solely referable to matters in the instrument 365
900-240 Deducting in anticipation of receiving award transport payment.... 365
900-245 Effect of exception in this Subdivision on exception for small total of expenses 365
900-250 Effect of exception in this Subdivision on methods of calculating car expense deductions 366
Part 5-35—Miscellaneous 368
Division 909—Regulations 368
909-1 Regulations......................................................................................... 368
Chapter 6—The Dictionary 369
Part 6-1—Concepts and topics 369
Division 950—Rules for interpreting this Act 369
950-100 What forms part of this Act............................................................ 369
950-105 What does not form part of this Act............................................... 370
950-150 Guides, and their role in interpreting this Act................................. 370
Division 960—General 371
Subdivision 960-E—Entities 371
960-100 Entities............................................................................................ 371
Subdivision 960-H—Abnormal trading in shares or units 372
960-220 Meaning of trading........................................................................ 372
960-225 Abnormal trading........................................................................... 372
960-230 Abnormal trading—5% of shares or units in one transaction......... 373
960-235 Abnormal trading—suspected 5% of shares or units in a series of transactions 373
960-240 Abnormal trading—suspected acquisition or merger...................... 374
960-245 Abnormal trading—20% of shares or units traded over 60 day period 374
Division 975—Concepts about companies 375
Subdivision 975-A—General 375
975-100 When a company is in existence..................................................... 375
975-150 Position to affect rights in relation to a company............................ 376
Subdivision 975-W—Wholly-owned groups of companies 376
975-500 Wholly-owned groups.................................................................... 376
975-505 What is a 100% subsidiary?........................................................... 376
Part 6-5—Dictionary definitions 378
Division 995—Definitions 378
995-1 Definitions.......................................................................................... 378
Income Tax Assessment Act 1997
No. 38, 1997
An Act about income tax and related matters
[Assented to 17 April 1997]
The Parliament of Australia enacts:
Table of sections
1-1........... Short title
1-2........... Commencement
1-3........... Differences in style not to affect meaning
This Act may be cited as the Income Tax Assessment Act 1997.
This Act commences on 1 July 1997.
(1) This Act contains provisions of the Income Tax Assessment Act 1936 in a rewritten form.
(2) If:
(a) that Act expressed an idea in a particular form of words; and
(b) this Act appears to have expressed the same idea in a different form of words in order to use a clearer or simpler style;
the ideas are not to be taken to be different just because different forms of words were used.
Note: A public or private ruling about a provision of the Income Tax Assessment Act 1936 is taken also to be a ruling about the corresponding provision of this Act, so far as the 2 provisions express the same ideas: see sections 14ZAAM and 14ZAXA of the Taxation Administration Act 1953.
Table of Subdivisions
2-A How to find your way around
2-B How the Act is arranged
2-C How to identify defined terms and find the definitions
2-D The numbering system
2-E Status of Guides and other non-operative material
This Act is designed to help you identify accurately and quickly the provisions that are relevant to your purpose in reading the income tax law.
The Act contains tables, diagrams and signposts to help you navigate your way.
You can start at Division 3 (What this Act is about) and follow the signposts as far into the Act as you need to go. You may also encounter signposts to several areas of the law that are relevant to you. Each one should be followed.
Sometimes they will lead down through several levels of detail. At each successive level, the rules are structured in a similar way. They will often be preceded by a Guide to the rules at that level. The rules themselves will usually deal first with the general or most common case and then with the more particular or special cases.
This Act is arranged in a way that reflects the principle of moving from the general case to the particular.
In this respect, the conceptual structure of the Act is something like a pyramid. The pyramid shape illustrates the way the income tax law is organised, moving down from the central or core provisions at the top of the pyramid, to general rules of wide application and then to the more specialised topics.
Table of sections
2-10......... When defined terms are identified
2-15......... When terms are not identified
2-20......... Identifying the defined term in a definition
(1) Many of the terms used in the income tax law are defined.
(2) Most defined terms in this Act are identified by an asterisk appearing at the start of the term: as in “*business”. The footnote that goes with the asterisk contains a signpost to the Dictionary definitions starting at section 995‑1.
(1) Once a defined term has been identified by an asterisk, later occurrences of the term in the same subsection are not usually asterisked.
(2) Terms are not asterisked in the non-operative material contained in this Act.
Note: The non-operative material is described in Subdivision 2-E.
(3) The following basic terms used throughout the Act are not identified with an asterisk. They fall into 2 groups:
Key participants in the income tax system
| Item | This term: | is defined in: |
| 1. | Australian resident | section 995-1 |
| 2. | Commissioner | section 995-1 |
| 3. | company | section 995-1 |
| 4. | entity | section 960-100 |
| 5. | individual | section 995-1 |
| 6. | partnership | section 995-1 |
| 7. | person | section 995-1 |
| 8. | trustee | section 995-1 |
| 9. | you | section 4-5 |
Core concepts
| Item | This term: | is defined in: |
| 1. | amount | section 995-1 |
| 2. | assessable income | Division 6 |
| 3. | assessment | section 995-1 |
| 4. | deduct, deduction | Division 8 |
| 5. | income tax | section 995-1 |
| 6. | income year | section 995-1 |
| 7. | taxable income | section 4-15 |
| 8. | this Act | section 995-1 |
Within a definition, the defined term is identified by bold italics.
Table of sections
2-25......... Purposes
2-30......... Gaps in the numbering
Two main purposes of the numbering system in this Act are:
To indicate the relationship between units at different levels.
For example, the number of Part 2-15 indicates that the Part is in Chapter 2. Similarly, the number of section 165-70 indicates that the section is in Division 165.
To allow for future expansion of the Act. The main technique here is leaving gaps between numbers.
There are gaps in the numbering system to allow for the insertion of new Divisions and sections.
Except where the gaps follow a regular pattern, notes are included at the end of one group of units to indicate the number of the next unit.
Table of sections
2-35......... Non-operative material
2-40......... Guides
2-45......... Other material
In addition to the operative provisions themselves, this Act contains other material to help you identify accurately and quickly the provisions that are relevant to you and to help you understand them.
This other material falls into 2 main categories.
The first is the “Guides”. A Guide consists of sections under a heading indicating that what follows is a Guide to a particular Subdivision, Division etc.
Guides form part of this Act but are kept separate from the operative provisions. In interpreting an operative provision, a Guide may only be considered for limited purposes. These are set out in section 950-150.
The other category consists of material such as notes and examples. These also form part of the Act. They are distinguished by type size from the operative provisions, but are not kept separate from them.
3-1........... What this Act is about
3-5........... Annual income tax
3-10......... Your other obligations as a taxpayer
3-15......... Your obligations other than as a taxpayer
This Act is mainly about income tax, and this Division is concerned only with income tax.
However, this Act also deals with a variety of other topics that may affect you:
| Item | For a guide to this topic: | See: |
| 1. | Medicare levy | Division 785 |
| 2. | HECS (Higher Education Contribution Scheme) | Division 786 |
| 3. | Withholding taxes | |
| | on dividends, interest and royalties | Division 765 |
| | on payments for mining operations on Aboriginal land | Division 766 |
| | on interest paid by companies on bearer debentures | Division 767 |
| | on certain income notionally accruing under deferred interest investments | Division 768 |
(1) Income tax is payable for each year by each individual and company, and by some other entities.
Note 1: Individuals who are Australian residents, and some trustees, are also liable to pay Medicare levy for each year. See Division 785.
Note 2: Income tax is imposed by the Income Tax Act 1986 and the other Acts referred to in the definition of income tax in section 995-1.
(2) Most entities have to pay instalments of income tax before the income tax they actually have to pay can be worked out.
(3) This Act answers these questions:
1. What instalments of income tax do you have to pay? When and how do you pay them?
See section 750-1.
2. How do you work out how much income tax you must pay?
See Division 4, starting at section 4-1.
3. What happens if your income tax is more than the instalments you have paid? When and how must you pay the rest?
See Division 1 (sections 204 to 220) of Part VI of the Income Tax Assessment Act 1936.
4. What happens if your income tax is less than the instalments you have paid? How do you get a refund?
See section 750-20.
5. What are your other obligations as a taxpayer, besides paying instalments and the rest of your income tax?
See section 3-10.
6. Do you have any other obligations under the income tax law?
See section 3-15.
7. If a dispute between you and the Commissioner of Taxation cannot be settled by agreement, what procedures for objection, review and appeal are available?
See Part IVC (sections 14ZL to 14ZZS) of the Taxation Administration Act 1953.
(1) Besides paying instalments and the rest of your income tax, your main obligations as a taxpayer are:
(a) to keep records and provide information as required by:
the Income Tax Assessment Act 1936; and
Division 900 (which sets out substantiation rules) of this Act; and
(b) to lodge returns as required by:
the Income Tax Assessment Act 1936.
Tax file numbers
(2) Under Part VA of the Income Tax Assessment Act 1936, a tax file number can be issued to you. You are not obliged to apply for a tax file number. However, if you do not quote one in certain situations:
you may become liable for instalments of income tax that would not otherwise have been payable;
the amount of certain of your instalments of income tax may be increased.
Your main obligations under the income tax law, other than as a taxpayer are:
in certain situations, to deduct from money you owe to another person, and to remit to the Commissioner, instalments of income tax payable by that person.
See Part 4-5 (Collection of income tax instalments),
starting at section 750-1.
Table of sections
4-1........... Who must pay income tax
4-5........... Meaning of you
4-10......... How to work out how much income tax you must pay
4-15......... How to work out your taxable income
Income tax is payable by each individual and company, and by some other entities.
Note: The actual amount of income tax payable may be nil.
For a list of the entities that must pay income tax,
see Division 9, starting at section 9-1.
If a provision of this Act uses the expression you, it applies to entities generally, unless its application is expressly limited.
Note: The expression you is not used in provisions that apply only to entities that are not individuals.
(1) You must pay income tax for each year ending on 30 June, called the financial year.
(2) Your income tax is worked out by reference to your taxable income for the income year. The income year is the same as the *financial year, except in these cases:
(a) for a company, the income year is the previous financial year;
(b) if you adopt an accounting period ending on a day other than 30 June, the income year is the accounting period adopted in place of the financial year or previous financial year, as appropriate.
Note: The Commissioner can allow you to adopt an accounting period ending on a day other than 30 June. See section 18 of the Income Tax Assessment Act 1936.
(3) Work out your income tax for the *financial year as follows:
Method statement
Step 1. Work out your taxable income for the income year.
To do this, see section 4-15.
Step 2. Work out your basic income tax liability on your taxable income using:
(a) the income tax rate or rates that apply to you for the income year; and
(b) any special provisions that apply to working out that liability.
See the Income Tax Rates Act 1986.
Step 3. Work out your tax offsets for the income year. A tax offset reduces the amount of income tax you have to pay.
For the list of tax offsets, see section 13-1.
Step 4. Subtract your *tax offsets from your basic income tax liability. The result is how much income tax you owe for the *financial year. (If your total tax offsets exceed your basic income tax liability, you are not entitled to a refund, or to offset the excess against any other liability.)
Note: Some tax offsets can be carried forward to a later year. See, for example, section 160AFE of the Income Tax Assessment Act 1936, which deals with the carry forward of excess foreign tax credits.
(4) For some entities, some or all of their income tax for the *financial year is worked out by reference to something other than taxable income for the income year.
See section 9-5.
(1) Work out your taxable income for the income year like this:
Method statement
Step 1. Add up all your assessable income for the income year.
To find out about your assessable income, see Division 6.
Step 2. Add up your deductions for the income year.
To find out what you can deduct, see Division 8.
Step 3. Subtract your deductions from your assessable income (unless they exceed it). The result is your taxable income. (If the deductions equal or exceed the assessable income, you don’t have a taxable income.)
Note: If the deductions exceed the assessable income, you may have a tax loss which you may be able to deduct in a later income year: see Division 36.
(2) There are cases where taxable income is worked out in a special way:
| Item | For this case ... | See: |
| 1. | A company does not maintain continuity of ownership and control during the income year and does not continue to carry on the same business | Subdivision 165‑B |
| 2. | A company becomes a PDF (pooled development fund) during the income year, and the PDF component for the income year is a nil amount | section 124ZTA of the Income Tax Assessment Act 1936 |
| 3. | A shipowner or charterer: has its principal place of business outside Australia; and carries passengers, freight or mail shipped in Australia | section 129 of the Income Tax Assessment Act 1936 |
| 4. | An insurer who is not an Australian resident enters into insurance contracts connected with Australia | sections 142 and 143 of the Income Tax Assessment Act 1936 |
| 5. | The Commissioner makes a default or special assessment of taxable income | sections 167 and 168 of the Income Tax Assessment Act 1936 |
Table of sections
6-1........... Diagram showing relationships among concepts in this Division
Operative provisions
6-5........... Income according to ordinary concepts (ordinary income)
6-10......... Other assessable income (statutory income)
6-15......... What is not assessable income
6-20......... Exempt income
6-25......... Relationships among various rules about ordinary income
(1) Assessable income consists of *ordinary income and *statutory income.
(2) Some *ordinary income, and some *statutory income, is *exempt income.
(3) *Exempt income is not assessable income.
(4) Some *ordinary income, and some *statutory income, is neither assessable income nor *exempt income.
(1) Your assessable income includes income according to ordinary concepts, which is called ordinary income.
Note: Some of the provisions about assessable income listed in section 10-5 may affect the treatment of ordinary income.
(2) If you are an Australian resident, your assessable income includes the *ordinary income you *derived directly or indirectly from all sources, whether in or out of Australia, during the income year.
(3) If you are not an Australian resident, your assessable income includes:
(a) the *ordinary income you *derived directly or indirectly from all *Australian sources during the income year; and
(b) other *ordinary income that a provision includes in your assessable income for the income year on some basis other than having an *Australian source.
(4) In working out whether you have derived an amount of *ordinary income, and (if so) when you derived it, you are taken to have received the amount as soon as it is applied or dealt with in any way on your behalf or as you direct.
(1) Your assessable income also includes some amounts that are not *ordinary income.
Note: These are included by provisions about assessable income.
For a summary list of these provisions, see section 10-5.
(2) Amounts that are not *ordinary income, but are included in your assessable income by provisions about assessable income, are called statutory income.
Note: Many provisions in the summary list in section 10-5 contain rules about ordinary income. These rules do not change its character as ordinary income.
(3) If an amount would be *statutory income apart from the fact that you have not received it, it becomes statutory income as soon as it is applied or dealt with in any way on your behalf or as you direct.
(4) If you are an Australian resident, your assessable income includes your *statutory income from all sources, whether in or out of Australia.
(5) If you are not an Australian resident, your assessable income includes:
(a) your *statutory income from all *Australian sources; and
(b) other *statutory income that a provision includes in your assessable income on some basis other than having an *Australian source.
(1) If an amount is not *ordinary income, and is not *statutory income, it is not assessable income (so you do not have to pay income tax on it).
(2) If an amount is *exempt income, it is not assessable income.
Note: If an amount is exempt income, there are other consequences besides it being exempt from income tax. For example:
the amount may be taken into account in working out the amount of a tax loss (see section 36‑10);
you cannot deduct as a general deduction a loss or outgoing incurred in deriving the amount (see Division 8).
To find out about exempt income, see section 6-20.
(1) An amount of *ordinary income or *statutory income is exempt income if it is made exempt from income tax by a provision of this Act.
For summary lists of provisions about exempt income,
see sections 11-5, 11-10 and 11-15.
(2) *Ordinary income is also exempt income to the extent that this Act excludes it (expressly or by implication) from being assessable income.
Note: Some express provisions result in ordinary income being neither assessable income nor exempt income. See, for example, section 121EG of the Income Tax Assessment Act 1936, dealing with offshore banking units.
(3) By contrast, an amount of *statutory income is exempt income only if it is made exempt from income tax by a provision of this Act outside this Division.
(1) Sometimes more than one rule includes an amount in your assessable income:
the same amount may be *ordinary income and may also be included in your assessable income by one or more provisions about assessable income; or
the same amount may be included in your assessable income by more than one provision about assessable income.
For a summary list of the provisions about assessable income,
see section 10-5.
However, the amount is included only once in your assessable income for an income year, and is then not included in your assessable income for any other income year.
(2) Unless the contrary intention appears, the provisions of this Act (outside this Part) prevail over the rules about *ordinary income.
Note: This Act contains some specific provisions about how far the rules about ordinary income prevail over the other provisions of this Act.
Table of sections
8-1........... General deductions
8-5........... Specific deductions
8-10......... No double deductions
(1) You can deduct from your assessable income any loss or outgoing to the extent that:
(a) it is incurred in gaining or producing your assessable income; or
(b) it is necessarily incurred in carrying on a *business for the purpose of gaining or producing your assessable income.
(2) However, you cannot deduct a loss or outgoing under this section to the extent that:
(a) it is a loss or outgoing of capital, or of a capital nature; or
(b) it is a loss or outgoing of a private or domestic nature; or
(c) it is incurred in relation to gaining or producing your *exempt income; or
(d) a provision of this Act prevents you from deducting it.
For a summary list of provisions about deductions, see section 12-5.
(3) A loss or outgoing that you can deduct under this section is called a general deduction.
(1) You can also deduct from your assessable income an amount that a provision of this Act (outside this Division) allows you to deduct.
(2) Some provisions of this Act prevent you from deducting an amount that you could otherwise deduct, or limit the amount you can deduct.
(3) An amount that you can deduct under a provision of this Act (outside this Division) is called a specific deduction.
For a summary list of provisions about deductions, see section 12-5.
If 2 or more provisions of this Act allow you deductions in respect of the same amount (whether for the same income year or different income years), you can deduct only under the provision that is most appropriate.
Part 1-4—Checklists of what is covered by concepts used in the core provisions
Table of sections
9-1........... List of entities
9-5........... Entities that work out their income tax by reference to something other than taxable income
Income tax is payable by the entities listed in the table.
Provisions of the Income Tax Assessment Act 1997 are identified in normal text. The other provisions, in bold, are provisions of the Income Tax Assessment Act 1936.
| Item | Income tax is payable by this kind of entity: | because of this provision: |
| 1. | An individual | section 4-1 |
| 2. | A company, that is: · a body corporate; or · an unincorporated body (except a partnership) | section 4-1 |
| 3. | A corporate limited partnership (as defined in section 94D) | section 94J |
| 4. | A mutual insurance association (as described in section 121) | section 121 |
| 5. | A trustee (except one covered by a later item in this table), but only in respect of some kinds of income of the trust | sections 98, 99, 99A and 102 |
| 6. | The trustee of a corporate unit trust | section 102K |
| 7. | The trustee of a public trading trust | section 102S |
| 8. | The trustee of a complying superannuation fund | section 278 |
| 9. | The trustee of a non-complying superannuation fund | section 286 |
| 10. | The trustee of a complying approved deposit fund | section 289 |
| 11. | The trustee of a non-complying approved deposit fund | section 294 |
| 12. | The trustee of a pooled superannuation trust | section 296 |
(1) For some entities, some or all of their income tax for the *financial year is worked out as described in the table.
Provisions of the Income Tax Assessment Act 1997 are identified in normal text. The other provisions, in bold, are provisions of the Income Tax Assessment Act 1936.
| Item | This kind of entity is liable to pay income tax worked out by reference to: | See: |
| 1. | A trustee covered by item 5 in the table in section 9-1 is liable to pay income tax worked out by reference to the net income of the trust for the income year. | sections 98, 99 and 99A |
| 2. | The trustee of a corporate unit trust is liable to pay income tax worked out by reference to the net income of the trust for the income year. | section 102K |
| 3. | The trustee of a public trading trust is liable to pay income tax worked out by reference to the net income of the trust for the income year. | section 102S |
| 4. | An entity that is liable to pay income tax (worked out by reference to taxable income or otherwise) is also liable to pay income tax worked out by reference to diverted income or diverted trust income for the income year. | section 121H |
| 5. | An Australian insurer that re-insures overseas can elect to pay, as agent for the re-insurer, income tax worked out by reference to the amount of the re-insurance premiums. | section 148 |
(2) For entities covered by an item in the table in subsection (1), the income year is the same as the *financial year, except in these cases:
(a) for a company, or an entity covered by item 2 or 3 in the table, the income year is the previous financial year;
(b) if an entity adopts an accounting period ending on a day other than 30 June, the income year is the accounting period adopted in place of the financial year or previous financial year, as appropriate.
Note: The Commissioner can allow an entity to adopt an accounting period ending on a day other than 30 June. See section 18 of the Income Tax Assessment Act 1936.
The provisions set out in the table:
include in your assessable income amounts that are not *ordinary income; and
vary or replace the rules that would otherwise apply for certain kinds of *ordinary income.
Provisions of the Income Tax Assessment Act 1997 are identified in normal text. The other provisions, in bold, are provisions of the Income Tax Assessment Act 1936.
| accrued leave transfer payments | |
| ....................................................................................................... | 26(ec) |
| allowances | |
| see employment | |
| annual leave | |
| see leave payments | |
| annuities | |
| ....................................................................................................... | 27H |
| approved deposit fund (ADFs) | |
| see superannuation | |
| attributable income | |
| see controlled foreign corporations and foreign investment funds | |
| avoidance of tax | |
| general ......................................................................................... | 177F |
| diversion of income .................................................................. | 121H |
| profits shifted out of Australia ................................................ | 136AD, 136AE |
| see also transfers of income | |
| bad debt | |
| debt recovered after a deduction allowed for a bad debt .. | 63(3) |
| balancing adjustment | |
| see depreciation, industrial property, investments, mining, research & development, scientific research and timber | |
| banking | |
| offshore banking activities, income from ............................. | 121EG(1) |
| offshore banking unit, deemed interest on payments to by owner ..................................................................................... |
121EK
|
| barter transactions | |
| ....................................................................................................... | 21, 21A, 26(e) |
| beneficiaries | |
| see trusts | |
| benefits | |
| business, non-cash .................................................................... | 21A |
| consideration, non-cash ........................................................... | 21 |
| meals you provide in an in-house dining facility ................. | 26AAAC |
| see also employment and superannuation | |
| bonus shares | |
| see shares | |
| bounties | |
| ....................................................................................................... | 26(g) |
| capital gains | |
| ....................................................................................................... | 160ZO |
| see also insurance | |
car expenses | |
| cents per kilometres reimbursement of ................................. | 26(eaa) |
| CFCs | |
| see controlled foreign corporations | |
| charters | |
| see shipping | |
| child | |
| non-trust income of, unearned ............................................... | 102AE |
| trust income of, unearned ........................................................ | 102AG |
| company | |
| see controlled foreign corporations, co-operative company, directors, dividends, liquidation, shareholders and shares | |
| compensation | |
| deductible loss or outgoing, insurance or indemnity for ..... | 26(j) |
| lessee pays for non-compliance with covenant to repair ... | 26(l) |
| live stock or trees, recoveries for loss of ................................ | 26B |
| profit or income, insurance or indemnity for loss of ........... | 26(j) |
| trading stock, insurance or indemnity for loss of ................ | 26(j) |
| see also embezzlement, insurance, live stock and scientific research | |
| consideration | |
| see benefits | |
| controlled foreign corporations (CFCs) | |
| attributable income of .............................................................. | 456 to 459A |
| see also dividends and taxes | |
| co-operative company | |
| receipts of ................................................................................... | 119 |
| credit union | |
| see co-operative company | |
| currency gains | |
| see foreign exchange | |
| death | |
| see trusts | |
| debt/equity swap | |
| see shares and units | |
| defence forces | |
| allowances and benefits for service as a member of .......... | 26(ea) |
| depreciation | |
| excess over depreciated value at disposal of property, treatment of ......................................................................... |
59
|
| pooled depreciated property, profits on the disposal, loss or destruction of ....................................................................... |
62AAT
|
| development allowance | |
| partnership property acquired under a pre-27 February 1992 contract ................................................................................. |
82AHA(5), (6)
|
| partnership which claimed a development allowance deduction, disposal of interest in ...................................... |
82AJ
|
| directors | |
| excessive remuneration or retirement payment from company .............................................................................. |
109
|
| distributions | |
| see dividends | |
| dividends | |
| general ......................................................................................... | 44(1) |
| distribution from a controlled foreign corporation .............. | 47A(1) |
| foreign taxes on, grossing up of .............................................. | 6AC |
| franked dividends, credits on .................................................. | 160AQT |
| repayments of foreign income tax deducted from ............. | 26A |
| see also liquidation | |
| drought investment allowance | |
| partnership which claimed drought investment allowance deduction, disposal of interest in ...................................... |
656
|
| elections | |
| reimbursement of expenses of ................................................ | 74(2), 74A(4) |
| electricity connections | |
| recovery of expense of ............................................................. | 70A(5) |
| eligible termination payments (ETPs) | |
| ....................................................................................................... | 27A to 27H |
| embezzlement | |
| recovery of loss from ................................................................ | 26(k) |
| employees | |
| see shares | |
| employment | |
| allowances and benefits in relation to employment or rendering services ................................................................ |
26(e), 26(ea)
|
| return to work payments .......................................................... | 26(eb) |
| see also accrued leave transfer payments, eligible termination payments and leave payments | |
| FIFs | |
| see foreign investment funds | |
| films | |
| Australian, proceeds of investment in ................................... | 26AG |
| foreign exchange | |
| gains ............................................................................................. | 82Y |
| foreign investment funds (FIFs) | |
| attributable income of .............................................................. | 529 |
| foreign tax paid in respect of a foreign investment fund attribution account payment ............................................ |
26D
|
| see also taxes | |
| franked dividends | |
| see dividends | |
| improvements | |
| see leases | |
| imputation | |
| see dividends | |
| income equalisation deposits | |
| withdrawals from ...................................................................... | 159GD |
| industrial property | |
| consideration for disposal of ................................................... | 124P |
| see also research & development | |
| infrastructure borrowings | |
| see interest | |
| insurance | |
| bonuses ....................................................................................... | 26(i), 26AH |
| company, demutualisation of ................................................ | 121AT |
| foreign life assurance policy .................................................... | 529 |
| life assurance, transfer of contributions by superannuation fund or approved deposit fund to .................................... |
275
|
| payments from a non-resident reinsurer in respect
of a loss ................................................................................. |
148
|
| premiums in respect of Australian business received by non-resident insurers ................................................................... |
143
|
| premiums paid to a non-resident for reinsurance ................ | 148 |
| premiums paid to mutual insurance association ................. | 121 |
| premiums payable to a non-resident for insurance of property in Australia ........................................................................... |
142(1)
|
| premiums payable to a non-resident for insuring an event that can only happen in Australia ............................................ |
142(1)
|
| premiums payable to a non-resident under an insurance contract with a resident ...................................................... |
142(2)
|
| rebates and premiums refunded to a superannuation fund trustee .................................................................................... |
279A(1)
|
| see also compensation, embezzlement and life assurance companies | |
| interest | |
| infrastructure borrowings, on .................................................. | 159GZZZZG |
| loans raised in Australia by foreign governments, on ......... | 27 |
| overpaid tax, on ........................................................................ | 26(jb) |
| qualifying securities, on ............................................................ | 159GQ, 159GW(1) |
| see also co-operative companies and leases | |
| investments | |
| non-interest bearing Commonwealth securities, gains on disposal or redemption of .................................................. |
26C
|
| prizes from investment-related lotteries ................................ | 26AJ |
| qualifying securities, payments to partial residents made under ..................................................................................... |
159GW(2)
|
| qualifying securities, amount assessable to issuer of .......... | 159GT(1B) |
| qualifying securities, balancing adjustment on the transfer of |
159GS
|
| securities, variation in terms of ............................................... | 159GV(2) |
| securities lending arrangements .............................................. | 26BC |
| traditional securities, gains on the disposal or redemption of ... |
26BB
|
| see also films and interest | |
| leases | |
| crown leases used for primary production, assignment
of ............................................................................................ |
88A(3)
|
| improvements made by lessee to land .................................. | 87 |
| interest component of payments under non-leveraged finance leases ..................................................................................... |
159GK
|
| lessees’ payments for non-compliance with covenant to repair ................................................................................................. |
26(l)
|
| partnership leasing property under non-leveraged finance lease, new partner or contribution of capital since 14 May 1985 ...................................................................................... |
159GO
|
| premiums on old leases ............................................................ | 84 |
| premiums relating to a grant or assignment ......................... | 26AB |
| profit on disposal of previously leased motor vehicles ...... | 26AAB |
| leave payments | |
| accrued leave transfer payment ............................................. | 26(ec) |
| annual leave, received in lieu of retirement or
termination ........................................................................... |
26AC
|
| long service leave, received in lieu of retirement or termination ................................................................................................. |
26AD
|
| life assurance companies | |
| consideration for transfer of equity in protection fund
of ............................................................................................ |
116DF
|
| disposal of assets of .................................................................. | 116CB(3), 116CC(2), 116CD, 116GA(2), 116GB |
| winding-up payments out of protection fund of ................. | 116DD |
| liquidation | |
| distribution to a shareholder in winding up a company ..... | 47(1) |
| live stock | |
| death or destruction of ............................................................. | 36, 36AAA, 36AA |
| departing Australia and ............................................................ | 36, 36AAA, 36AA |
| insolvency, and .......................................................................... | 36, 36AAA, 36AA |
| profits on death or disposal of ................................................ | 36, 36AAA, 36AA |
| see also compensation and trading stock | |
| loans | |
| fees for the procurement of ..................................................... | 26(h) |
| see also interest and shareholders | |
| long service leave | |
| see leave payments | |
| losses | |
| see compensation | |
| lotteries | |
| see investments | |
| meals | |
| see benefits | |
| mining | |
| balancing adjustment on disposal of property .................... | 330-485 |
| minors | |
| see child | |
| motor vehicles | |
| see car expenses and leases | |
| mutual insurance | |
| see insurance | |
| non-cash benefits | |
| see benefits and employment | |
| offshore banking units | |
| see banking | |
| partnerships | |
| net income of, partner’s interest in ......................................... | 92(1) |
| uncontrolled partnership income, effect of .......................... | 94 |
| see also development allowance, drought investment allowance and leases | |
| petroleum | |
| resource rent tax, recovery of ................................................. | 330-350(3) |
| see also mining | |
| pooled depreciated property | |
| see depreciation | |
| premiums | |
| see insurance, leases and superannuation | |
| prizes | |
| see investments | |
| profits | |
| business partly in Australia and partly overseas ................. | 43(1) |
| profit-making undertakings or the sale of property acquired for profit-making by sale ................................................... |
25A
|
| see also avoidance of tax | |
| property | |
| see profits and trusts | |
| quarrying | |
| see mining | |
| rates | |
| refund of ..................................................................................... | 72(2) |
| reimbursements | |
| see car expenses, dividends, elections, electricity connections, embezzlement, insurance, petroleum and taxes | |
| reinsurance | |
| see insurance | |
| research & development | |
| consideration for loss or disposal of plant or buildings used for ................................................................................................. |
73B(23) to (27C), 73G(4)
|
| return on ...................................................................................... | 73B(27A), (27C) |
| transferee of property used for, effect of disposal or change of use by ............................................................................... |
73F(10)
|
| residual value | |
| see industrial property | |
| retirement payments | |
| see directors, leave payments and shareholders | |
| rights to income | |
| see transfers of income | |
| roads | |
| see timber | |
| royalties | |
| ....................................................................................................... | 26(f) |
| schemes | |
| see avoidance of tax | |
| scientific research | |
| consideration for disposal or destruction of buildings acquired for scientific research ......................................................... |
73A(4)
|
| securities | |
| see investments | |
| services | |
| see co-operative companies, employment, loans and trusts | |
| shareholders | |
| excessive remuneration or retirement payment from company .............................................................................. |
109
|
| loans, payments and credits from company ....................... | 108 |
| see also dividends | |
| shares | |
| acquired in a debt/equity swap, profit on the disposal cancellation or redemption of .......................................... |
63E(4)
|
| bonus shares, cost of ................................................................ | 6BA |
| buy-backs ................................................................................... | 159GZZZJ to 159GZZZT |
| employee share acquisition schemes ..................................... | 26AAC, 139 to 139GH |
| holding company shares held by a subsidiary, cancellation of ................................................................................................. |
159GZZZC to 159GZZZI
|
| see also dividends | |
| shipping | |
| goods shipped in Australia, amounts paid to foreign shipowners and charterers for ........................................... |
129
|
| subsidies | |
| ....................................................................................................... | 26(g) |
| superannuation | |
| benefits received from older superannuation funds ........... | 26AF, 26AFA, 26AFB |
| complying fund becomes non-complying, effect of .......... | 288A |
| contributions to a superannuation fund ............................... | 278, 281, 286, 288 |
| contributions to an approved deposit fund .......................... | 289, 290, 294, 295 |
| non-resident fund becoming resident, effect of ................... | 288B |
| payments and benefits from a fund ...................................... | 82AAQ |
| trustee’s liability to pay tax ..................................................... | 278, 286, 289, 294, 296 |
| see also insurance | |
| tax avoidance | |
| see avoidance of tax and transfers of income | |
| taxes | |
| refund of ..................................................................................... | 72(2) |
| tax related expenses, recovery of ........................................... | 69(8) |
| see also dividends, foreign investment funds and interest | |
| termination of employment | |
| see directors, eligible termination payments, leave payments and shareholders | |
| timber | |
| access road, balancing adjustment on the disposal of ....... | 124G |
| mill, balancing adjustment on the disposal of ..................... | 124JB |
| trading stock | |
| change in interests in ................................................................. | 36A |
| death of trader and ................................................................... | 37 |
| difference between opening and closing value of ............... | 28 |
| disposal of for more than an arm’s length price .................. | 31C |
| disposal of outside ordinary course of business .................. | 36(1) |
| see also compensation | |
| transfers of income | |
| consideration for transfer of right to income ....................... | 102CA |
| payments for transfer or disposal of property ..................... | 262 |
| transferee, effect on of transfer of right to income ............. | 102C |
| transferor, effect on of transfer of right to income ............. | 102B |
| travel expenses | |
| see car expenses | |
| trusts | |
| beneficiary under legal disability or with a vested and indefeasible interest in trust income ................................ |
100
|
| deceased estates, income of .................................................... | 101A |
| deceased estates, your interest in income of ........................ | 26(b) |
| discretionary trusts .................................................................... | 101 |
| net income of a trust estate, your present entitlement to ... | 26(b), 97, 101 |
| non-resident beneficiaries, liability to tax of ........................ | 98A |
| non-resident trust estates to which you have transferred property or services, income of ........................................ |
102AAZD
|
| property of applied for benefit of beneficiaries ................... | 99B |
| trust estate includes income from another trust estate ....... | 94(5) |
| trustees’ liability to tax.............................................................. | 98, 99, 99A, 102, 102K, 102S |
| see also avoidance of tax and superannuation | |
| unearned income | |
| see child | |
| units | |
| acquired in a debt/equity swap, profit on the disposal, cancellation or redemption of .......................................... |
63E(4)
|
| winding-up | |
| see insurance and liquidation | |
| wool clips | |
| double wool clips, treatment of .............................................. | 26BA |
Table of sections
11-1......... Overview
11-5......... Entities that are exempt, no matter what kind of ordinary or statutory income they have
11-10....... Ordinary or statutory income which is exempt, no matter whose it is
11-15....... Ordinary or statutory income which is exempt only if it is derived by certain entities
*Ordinary income or *statutory income which is exempt from income tax can be divided into 3 main classes:
(a) ordinary or statutory income of entities that are exempt, no matter what kind of ordinary or statutory income they have (see table in section 11-5);
(b) ordinary or statutory income which is exempt, no matter whose it is (see table in section 11-10);
(c) ordinary or statutory income which is exempt only if it is *derived by certain entities (see table in section 11-15).
11-5 Entities that are exempt, no matter what kind of ordinary or statutory income they have
Provisions of the Income Tax Assessment Act 1997 are identified in normal text. The other provisions, in bold, are provisions of the Income Tax Assessment Act 1936.
| charity, education, religion or science | |
| charitable fund, public ............................................................. | 23(j) |
| charitable institution ................................................................. | 23(e) |
| educational institution, public ................................................. | 23(e) |
| religious institution .................................................................... | 23(e) |
| scientific institution ................................................................... | 23(e) |
| scientific research fund ............................................................ | 23(j) |
| scientific society etc. ................................................................. | 23(g)(ii) |
| community service | |
| community service society etc. ............................................... | 23(g)(v) |
| employees and employers | |
| employee association ............................................................... | 23(f) |
| employer association ................................................................ | 23(f) |
| trade union ................................................................................. | 23(f) |
| film | |
| Australian Film Finance Corporation .................................... | 23(k) |
| finance | |
| friendly society .......................................................................... | 23(g)(i) |
| government | |
| local governing body ................................................................ | 23(d) |
| municipal corporation .............................................................. | 23(d) |
| public authority ......................................................................... | 23(d) |
| state/territory bodies ................................................................. | 24AK to 24AZ |
| health | |
| health benefits organisation .................................................... | 23(eb) |
| hospital ........................................................................................ | 23(ea) |
| medical benefits organisation ................................................. | 23(eb) |
| mining | |
| British Phosphate Commissioner Banaba
Contingency Fund .............................................................. |
23(jf)
|
| Phosphate Mining Company of Christmas Island ............. | 23(je) |
| primary or secondary resources and tourism | |
| agricultural society etc. ............................................................. | 23(h) |
| aviation society etc. .................................................................. | 23(h) |
| horticultural society etc. ........................................................... | 23(h) |
| industrial society etc. ................................................................ | 23(h) |
| manufacturing society etc. ...................................................... | 23(h) |
| pastoral society etc. .................................................................. | 23(h) |
| tourism society etc. ................................................................... | 23(h) |
| viticultural society etc. .............................................................. | 23(h) |
| sports, culture or recreation | |
| animal racing society etc. ........................................................ | 23(g)(iv) |
| art society etc. ........................................................................... | 23(g)(ii) |
| game society etc. ....................................................................... | 23(g)(iii) |
| literature society etc. ................................................................. | 23(g)(ii) |
| music society etc. ...................................................................... | 23(g)(ii) |
| sport society etc. ........................................................................ | 23(g)(iii) |
| superannuation and related business | |
| constitutionally protected funds ............................................. | 271A |
Provisions of the Income Tax Assessment Act 1997 are identified in normal text. The other provisions, in bold, are provisions of the Income Tax Assessment Act 1936.
| dividends or shares | |
| pooled development fund company dividend .................... | 124ZM |
| pooled development fund company shares, income from sale of .................................................................................... |
124ZN
|
| financial transactions | |
| infrastructure borrowings, income in relation to .................. | 159GZZZZE |
| pooled development fund company dividends.................... | 124ZM |
| pooled development fund company shares, income from sale of .................................................................................... |
124ZN
|
| foreign aspects of income taxation | |
| attributed foreign investment fund income .......................... | 23AK |
| attributed income ...................................................................... | 23AI |
| Australian-American Education Foundation, grant from . | 23(za) |
| withholding tax, income subject to ........................................ | 128D |
| non-cash benefits | |
| business benefit ......................................................................... | 23L(2) |
| fringe benefit .............................................................................. | 23L(1) |
Provisions of the Income Tax Assessment Act 1997 are identified in normal text. The other provisions, in bold, are provisions of the Income Tax Assessment Act 1936.
| defence | |
| Defence Force member, allowances ...................................... | 23(t) |
| Emergency Defence Force member, pay and allowances . | 23(sa) |
| Reserve Defence Force member, pay and allowances ....... | 23(s) |
| education | |
| bursary, educational allowance etc. ...................................... | 23(z) |
| CRAFT scheme, employer’s income from ........................... | 23(jc) |
| foreign student, scholarship and bursary to ......................... | 23(ya) |
| full time student, income from a scholarship, bursary, other educational allowance or educational assistance ......... |
23(z)
|
| isolated child, income for the provision of education of ... | 23(zaa) |
| secondary student, income for the provision of education
of ............................................................................................ |
23(zaa)
|
| foreign aspects of income taxation | |
| approved overseas project, income from ............................. | 23AF |
| Australian Federal Police member in Cambodia, pay and allowance ............................................................................. |
23ADA
|
| Commonwealth Government Officer, official salary and foreign income ..................................................................... |
23(a)(vi)
|
| Commonwealth sporting club or association, income of .. | 23(c)(ii) |
| consul and official staff member, official salary and foreign income .................................................................................. |
23(a)(ii)
|
| Defence Force member, pay and allowances from being on eligible duty .......................................................................... |
23AD
|
Defence Force member, non-resident, pay
and allowances of .............................................................. |
23(u)
|
| Defence Force member, pay and allowances from performing duties in operational areas ................................................ |
23AC
|
| defence of Australia, overseas person’s income from assisting in Australia’s defence.......................................................... |
23(v)
|
| diplomat and official staff member, official salary and foreign income ..................................................................... |
23(a)(ii)
|
| dividend from a foreign country, non-portfolio .................. | 23AJ |
| educational, scientific, religious or philanthropic society, income of a visiting representive of ................................. |
23(c)(iv)
|
| expert, non-resident, remuneration of ................................... | 23(b) |
| foreign branch profits by an Australian company .............. | 23AH |
| foreign society or association representative, income of ... | 23(c)(iv) |
| government representative and members of the entourage, non-resident, income of ..................................................... |
23(c)(iii)
|
| persecution victim, pensions etc. ............................................ | 23(kc) |
| non-resident, foreign sourced income .................................... | 23(r) |
| OBU off-shore investment trusts, income to which subsection 121D(6) applies ................................................................... |
121EL
|
| overseas employment income, resident, income of ............ | 23AG |
| Papua New Guinea pension, Papua New
Guinea resident .................................................................... |
23(kd)
|
| press representative, foreign, income of ................................ | 23(c)(v) |
| resistance fighter and victim of wartime persecution, pension and etc. of............................................................................ |
23(kca)
|
| sporting club, British Commonwealth, income of ............... | 23(c)(ii) |
| sports person, non-resident, income of .................................. | 23(c)(i) |
| superannuation fund, non-resident, interest and dividend income of ............................................................................. |
23(jb)
|
| Territory resident, income from sources in a prescribed Territory ................................................................................ |
24G
|
| Territory resident company or trust, income from sources outside Australia ................................................................. |
24F
|
| United Nations, income from service with ............................ | 23AB |
| United States projects, income from approved overseas projects ................................................................................. |
23AA
|
| health | |
| Thalidomide Foundation, trustee, income of ....................... | 23(ec) |
| life assurance | |
| constitutionally protected fund, income attributable to .... | 110CA |
| constitutionally protected fund, registered organisation, income attributable to ........................................................ |
116FC
|
| CS/RA, percentage of notional amount ............................... | 110C |
| CS/RA class of assessable income, registered organisation | 116FA |
| CS/RA class of assessable income ......................................... | 110B |
| current pension liabilities, registered organisation ............... | 116FB |
| foreign permanent establishment, income attributable to policy issued by ................................................................... |
112C
|
| life insurance company, grant from the Protection Fund .. | 116DG |
| policies, income in relation to .................................................. | 112A |
| pooled superannuation trust, disposal of units in ................ | 111B |
| pooled superannuation trust, registered organisation, disposal of units in .............................................................................. |
116GC
|
| reinsurance recovery and refund of premium, registered organisation, income from ................................................ |
116GE
|
| mining | |
| Aboriginal and Torres Strait Islander, mining payment ..... | 23AE |
| distributing body, mining payment ........................................ | 23AE |
| rights to mine, sale of ................................................................ | 330-60 |
| social security or like payments | |
| disability services payment ..................................................... | 24AF |
| domiciliary nursing care benefit ............................................. | 24AG |
| drought relief, payment for ..................................................... | 24AIA to 24AIB |
| persecution victim, pension etc. for ...................................... | 23(kc) |
| resistance fighter and victim of wartime persecution, pension and etc. for ........................................................................... |
23(kca)
|
| social security, payment from ................................................ | 24AB to 24ABZD |
| student and youth, assistance payment to ........................... | 24ABZE to 24ABZF |
| veteran, Australian and United Kingdom, payment to ...... | 24AH |
| veteran, payment to ................................................................. | 24AC to 24ACWA, 24AE |
| wounds and disability pension ................................................ | 24AI |
| student | |
| see education | |
| superannuation or related business | |
| Approved Deposit Fund, continuously complying fixed interest, income from 25 May 1988 deposits ................ |
290A
|
| Approved Deposit Fund, income from a grant of financial assistance under Part 23 of the Superannuation Industry (Supervision) Act 1993 ...................................................... |
315C
|
| Approved Deposit Fund, non-reversionary bonuses on policies of life assurance .................................................................. |
291A
|
| Approved Deposit Fund, pre-1 July 1988 income ............... | 291 |
| pooled superannuation trust, income from constitutionally protected funds ................................................................... |
297C
|
| pooled superannuation trust, income from current pension liabilities of complying superannuation funds .............. |
297B
|
| pooled superannuation trust, non-reversionary bonuses on policies of life assurance .................................................... |
297A
|
| pooled superannuation trust, pre-1 July 1988 income ....... | 297 |
| superannuation fund, income from current pension
liabilities ................................................................................ |
283
|
| superannuation fund, income from segregated current pensions assets .................................................................... |
282B
|
| superannuation fund, non-reversionary bonuses on policies of life assurance ....................................................................... |
282A
|
| superannuation fund, pre-1 July 1988 income .................... | 282 |
| superannuation fund, regulated, income from a grant of financial assistance under Part 23 of the Superannuation Industry (Supervision) Act 1993 ...................................... |
315C
|
| United Nations | |
| Australian Federal Police member in Cambodia, pay and allowance ............................................................................. |
23ADA
|
| United Nations Service, income from .................................... | 23AB |
| vice regal | |
| Governor-General, official salary and foreign income ....... | 23(a)(i) |
| State Governor, official salary and foreign income ............ | 23(a)(i) |
| welfare | |
| Handicapped Persons Assistance Act 1974, bonus from .. | 23(kba) |
| maintenance payment ............................................................. | 23(l) |
| rent subsidy ................................................................................ | 23(ke) |
Note: The following provisions of the Income Tax Assessment Act 1936 give rise to notional exempt income and not exempt income. For this reason the provisions do not appear in the lists of kinds of exempt income.
The provisions are: paragraphs 384(1)(b) and 385(1)(b), subsection 402(2) and sections 403 and 404.
The provisions set out in the table contain rules about specific types of deduction.
Provisions of the Income Tax Assessment Act 1997 are identified in normal text. The other provisions, in bold, are provisions of the Income Tax Assessment Act 1936.
| accrued leave transfer payments | |
| ....................................................................................................... | 51(3) |
| advance expenditure | |
| generally ...................................................................................... | 82KZL to 82KZO |
| avoidance arrangements ......................................................... | 82KJ |
| when deductible ......................................................................... | 82KZM |
| associated persons | |
| associated persons and relatives, amounts paid to, reduction of deduction ......................................................................... |
65(1) to 65(1F)
|
| family members, expenses incurred in maintaining, no deduction for ....................................................................... |
65(2)
|
| averaging of incomes | |
| generally ...................................................................................... | 149 to 158A |
| excess of allowable deductions .............................................. | 154 |
| bad debts | |
| general ......................................................................................... | 63, 63F |
| companies .................................................................................. | 63A to 63CA |
| debt/equity swaps ..................................................................... | 63E, 63F |
| money lenders, listed country branches, no deduction
for .......................................................................................... |
63D
|
| see also losses | |
| banks | |
| Commonwealth Savings Bank of Australia ........................ | 160ABB |
| foreign banks, Australian branches of .................................. | 160ZZVA to 160ZZZJ |
| boats | |
| no deduction for ........................................................................ | 51AB |
| see also depreciation | |
| borrowing expenses | |
| ....................................................................................................... | 67 |
| buildings | |
| capital allowances ..................................................................... | Division 40 |
| income producing buildings, capital allowances ................. | Division 43 |
| see also heritage conservation work | |
| capital allowances | |
| ....................................................................................................... | Division 40 |
| see also depreciation and development allowance | |
| capital gains | |
| no deduction for an amount that would otherwise be deductible only because a net capital gain is included in assessable income ............................................................... |
51AAA
|
| capital loss | |
| net capital loss, no deduction for ........................................... | 160ZO |
| net capital loss, transfer within company group .................. | 160ZP |
| car disposal | |
| see depreciation | |
| car expenses | |
| generally ...................................................................................... | Division 28 |
| “cents per kilometre” method ................................................. | Subdivision 28-C |
| “log book” method ................................................................... | Subdivisions 28-F and 28-G |
| “one-third of actual expenses” method ................................ | Subdivision 28-E |
| substantiation of car expenses ............................................... | Division 900 |
| “12% of original value” method ............................................ | Subdivision 28-D |
| car expenses of employee | |
| employee’s car expenses where car provided by employer can be used for private purposes, no deduction for ..... |
51AF
|
| car parking | |
| employee’s car parking expenses, no deduction for ........... | 51AGA |
| self-employed persons, partnerships and trusts car parking expenses, no deduction for ............................................... |
51AGB
|
| self-employed persons, partnerships and trusts car parking expenses, reduced deduction approved using allowed method .................................................................................. |
89A to 89JC
|
| children’s income | |
| generally ...................................................................................... | 102AA to 102AJ |
| taxable income of a child, deductions taken into consideration in calculating .............................................. |
102AD
|
| club fees | |
| club fees, no deduction for ...................................................... | 51AB |
| see also subscriptions to associations | |
| companies, co-operative and mutual | |
| generally ...................................................................................... | 117 to 121 |
| distributions of assessable income ......................................... | 120 |
| companies, private | |
| excessive payments to shareholders directors and associates, reduced deduction .......................................... |
109
|
| composite incomes | |
| more than one class of income, order in which deductions must be claimed if entity in receipt of ............................. |
50
|
| controlled foreign companies | |
| generally ...................................................................................... | 316 to 468 |
| bad debts .................................................................................... | 399A |
| depreciation ................................................................................ | 398 |
| finance share dividends ........................................................... | 394 |
| taxes paid ................................................................................... | 393 |
| convertible notes | |
| see interest | |
| copyrights | |
| expenditure in obtaining registration ..................................... | 68A |
| currency exchange gains and losses | |
| see foreign exchange | |
| depreciation | |
| generally ...................................................................................... | 54 to 62AAV |
| calculation of depreciation ...................................................... | 56 |
| car disposal, balancing adjustment under section 59 may be reduced by Commissioner ........................................... |
59AAA
|
| deduction for .............................................................................. | 54 |
| disposal, loss or destruction of depreciated property, balancing adjustment ........................................................ |
59
|
| iron and steel production, special depreciation .................... | 57AK |
| motor vehicle, limit on cost price ............................................ | 57AF |
| partial use of property, only partial deduction .................... | 61 |
| roll-over relief, unpooled property .......................................... | 58 |
| trading ships, special depreciation .......................................... | 57AM |
| designs | |
| expenditure in obtaining or extending registration .............. | 68A |
| development allowance | |
| generally ...................................................................................... | 82AAAA to 82AQ |
| disposal of property after 12 months..................................... | 82AH |
| leased property, limit on deduction for ................................. | 26-55 |
| lessor may transfer benefit of deduction to lessee .............. | 82AD |
| new property, capital expenditure incurred after 26 February 1992, additional deduction ............................................... |
82AB, 82AM
|
| disposal of depreciated property | |
| see depreciation | |
| dividends | |
| debt dividends ............................................................................ | 67AA |
| franking credits, companies and non-residents ................... | 160AR, 160ARD |
| franking credits, pooled development funds (PDFs) ........... | 124ZM |
| drought investment allowance | |
| see primary production | |
| education expenses | |
| Higher Education Contribution Scheme, no deduction unless provided as fringe benefit .................................................. |
51(6), 51(6A)
|
| limit on deduction ..................................................................... | 82A |
| election expenses | |
| Federal and State Parliament election expenses ................. | 74, 74B |
| local government election expenses, limited deduction
for........................................................................................... |
74A, 74B
|
| electricity connections | |
| capital cost of ............................................................................ | 70A |
| embezzlement | |
| embezzlement, defalcation, larceny, misappropriation, losses caused by .................................................................. |
71
|
| employees | |
| pensions, gratuities or retiring allowances for ex‑employees ................................................................................................. |
78
|
| see also shares | |
| entertainment | |
| expenditure, no deduction for some ...................................... | 51AE |
| meal entertainment, calculation of deductible amount ..... | 51AEA to 51AEC |
| environment | |
| environmental impact studies ................................................. | 82B to 82BG |
| environment protection expenditure ..................................... | 82BH to 82BR |
| exploration and prospecting | |
| ....................................................................................................... | Subdivision 330-A |
| film income | |
| Australian films ......................................................................... | 124ZAA to 124ZAP |
| exempt film income .................................................................. | 23H |
| see also losses | |
| financial arrangements | |
| see borrowing expenses, infrastructure borrowings, interest, leases and securities | |
| foreign exchange | |
| losses ............................................................................................ | 82U to 82ZB |
| foreign income | |
| limit on deduction ..................................................................... | 79D |
| foreign investment funds (FIFs) | |
| generally ...................................................................................... | 469 to 624 |
| loss under cash surrender values method ............................. | 533 |
| loss under market value method ............................................ | 532 |
| notional deductions .................................................................. | 567 to 574 |
| foreign life assurance policies | |
| see foreign investment funds | |
| foreign tax credits | |
| generally ...................................................................................... | 160AE to 160AFF |
| Australian branch of a foreign bank, foreign tax paid on interest received by the branch from a place outside Australia ............................................................................... |
160ZZY
|
| freight | |
| freight for shipped goods ......................................................... | 135A |
| fringe benefits | |
| contributions for private component, no deduction for ..... | 51AJ |
| employee’s car expenses where car provided by employer can be used for private purposes, no deduction for ..... | 51AF |
| employee’s car parking expenses, no deduction for ........... | 51AGA |
| expense payment fringe benefits, reduced deduction ........ | 51AH |
| gifts | |
| general ......................................................................................... | 78 |
| cultural organisations, eligibility criteria ................................ | 78AA |
| environmental organisations, eligibility criteria ................... | 78AB |
| limit on deduction ..................................................................... | 26-55 |
| see also tax avoidance schemes | |
| grape vines | |
| see primary production | |
| horticultural plants | |
| see primary production | |
| heritage conservation work | |
| generally ...................................................................................... | 159U to 159UY |
| rebate, no deduction if entitled to a ...................................... | 159UU |
| Higher Education Contribution Scheme (HECS) | |
| no deduction for unless fringe benefit ................................... | 51(6), 51(6A) |
| income equalisation deposits | |
| see primary production | |
| industrial property | |
| generally ...................................................................................... | 124K to 124Z |
| deduction for ........................................................... | 124M |
| disposal or lapse of a unit of industrial property | 124N, 124PA, 124Q |
| copyright design and patents, expenditure in obtaining grant or registration ............................................................. |
68A
|
| infrastructure borrowings | |
| generally ...................................................................................... | 159GZZZZD to 159GZZZZH |
| no deduction for ........................................................................ | 159GZZZZE |
| insurance and annuity business | |
| generally ...................................................................................... | 116E to 116J |
| assets, notional Part IIIA disposal of .................................... | 116GA |
| benefits or reinsurance premiums, no deduction for .......... | 116HAD |
| deductions for ............................................................................ | 116H |
| investment component, cost of obtaining ............................ | 116HAC |
| superannuation premiums, expenditure incurred in obtaining ............................................................................... |
116HAB
|
| insurance with non-residents | |
| generally ...................................................................................... | 141 to 148 |
| insurance premiums, no deduction unless arrangement to pay tax .................................................................................. |
145
|
| reinsurance, no deduction for resident carrying on insurance business in Australia for reinsurance premiums paid to a non-resident ..................................... |
148
|
| interest | |
| convertible notes, interest on, generally ................................ | 82L to 82T |
| interest for underpayment or late payment of tax ............. | 51(5) |
| interest, no deduction for interest paid by a non-resident until the withholding tax payable has been paid .......... |
221YRA(1)
|
| life assurance premiums, interest etc. on loans to finance, no deduction for .................................................................. |
67AAA
|
| non-residents, debt creation involving, generally ................ | 159GZY to 159GZZF |
| superannuation contributions, interest etc. on loans to finance, no deduction for .................................................. |
67AAA
|
| thin capitalisation by non-residents, generally ..................... | 159GZA to 159GZX |
| see also infrastructure borrowings | |
| international agreements | |
| see transfer pricing | |
| international profit shifting | |
| see transfer pricing | |
| investment company | |
| see shares | |
| iron and steel production | |
| special depreciation for property used in basic iron and steel production ................................................................... |
57AK
|
| land degradation | |
| see primary production | |
| larceny | |
| see embezzlement | |
| lease document expenses | |
| ....................................................................................................... | 68 |
| leases | |
| finance leases and arrangements, use of property if end‑user an exempt public body or use outside Australia to produce exempt income .............................. |
159GE to 159GO
|
| improvements on leased land and premiums, leases assigned or surrendered before 23 October 1964 and for mining leases assigned or surrendered before 10 May 1968 ....................................................................... |
83 to 89, 88A(3)
|
| leveraged arrangements, property used: | |
| • other than to produce assessable income; or | |
| • by a non-resident outside Australia; or | |
| • by a previous owner | |
| ......................................................................................................... | 51AD |
| leave payments | |
| accrued leave transfer payments ........................................... | 51(3) |
| no deduction for leave payments until paid ........................ | 51(3) |
| legal expenses | |
| capital legal expenses, limited deduction for ....................... | 64A |
| leisure facilities | |
| no deduction for ........................................................................ | 51AB |
| life assurance companies | |
| ....................................................................................................... | 110 to 116DK |
| loans | |
| see borrowing expenses, interest and securities | |
| losses | |
| foreign exchange ....................................................................... | 82U to 82ZB |
| profit-making undertaking or scheme ................................... | 52 |
| property sale ............................................................................... | 52 |
| traditional securities, loss on disposal or redemption of ..... | 70B |
| see also tax losses | |
| management and investment company shares | |
| see shares | |
| membership of associations | |
| see subscriptions to associations | |
| mining | |
| generally ...................................................................................... | Division 330 |
| gold mining ................................................................................. | 159GZZG to 159GZZZBI |
| uranium mining ......................................................................... | 23D |
| mortgage | |
| expenses of discharging a mortgage ...................................... | 67A |
| motor vehicles | |
| see car expenses and leases | |
| non-cash transactions | |
| non-cash business benefits ...................................................... | 51AK |
| non-cash consideration, money value deemed to have been paid or given ............................................................... |
21
|
| non-resident trust estates | |
| generally ...................................................................................... | 102AAA to 102AAZG |
| modified application of depreciation provisions ................. | 102AAY |
| modified application of trading stock provisions ................ | 102AAZ |
| no deductions allowable under section 79E, 79F, 80, 80AAA or 80AA .................................................................. |
102AAZC
|
| offshore banking units | |
| generally ...................................................................................... | 121A to 121EL |
| deductions for ............................................................................ | 121EG |
| foreign tax deduction ............................................................... | 121EI |
| partnerships | |
| losses, partner’s share of partnership loss ............................. | 90, 92 |
| patents | |
| expenditure relating to grant of patents, etc. ........................ | 68A |
| penalties | |
| no deduction for penalties ....................................................... | 51(4) |
| petroleum prospecting and mining | |
| generally ...................................................................................... | Division 330 |
| petroleum resource rent tax payments .................................. | Subdivision 330-G |
| plant and articles | |
| see capital allowances and depreciation | |
| pooled development funds (PDFs) | |
| ....................................................................................................... | 124ZM to 124ZZD |
| prepaid expenditure | |
| see advance expenditure | |
| primary production | |
| drought investment allowance, generally ............................. | 625 to 684 |
| grape vines, expenditure incurred in establishing ................ | 75AA |
| horticultural plants, establishment costs of .......................... | 124ZZD to 124ZZR |
| income equalisation deposits .................................................. | 159GA to 159GDA |
| land, preparing clearing ploughing or draining land for use in primary production and other activities ..................... |
75A
|
| land degradation, expenses incurred in preventing ............. | 75D |
| telephone lines, cost of extending .......................................... | 70 |
| water, expenditure on conserving or conveying .................. | 75B |
| see also electricity connections | |
| promoters recoupment tax | |
| general ......................................................................................... | 78B |
| limit on deduction ..................................................................... | 26-55 |
| property | |
| arrangements relating to use of property if end-user an exempt public body or use outside Australia to produce exempt income .................................................................... |
159GE to 159GO
|
| leveraged arrangements, property used: | |
| • other than to produce assessable income; or | |
| • by a non-resident outside Australia; or | |
| • by a previous owner | |
| ......................................................................................................... | 51AD |
| sale of property, profit or loss ................................................. | 82(2) |
| see also capital allowances, depreciation and losses | |
| public trading trusts | |
| generally ...................................................................................... | 102M to 102T |
| debt dividends, application of section 67AA ....................... | 102T(4A) |
| qualifying securities | |
| see securities | |
| quarrying | |
| ....................................................................................................... | Division 330 |
| regional headquarters (RHQs) | |
| ....................................................................................................... | 82C to 82CE |
| reimbursements | |
| expense payment fringe benefits, reduced deduction ........ | 51AH |
| reinsurance | |
| see insurance with non-residents | |
| relatives, payments to | |
| see associated persons | |
| repairs | |
| general ......................................................................................... | 53 |
| repair covenants, payment for non-compliance with covenant to repair under lease ......................................... |
53AA
|
| research & development | |
| generally ...................................................................................... | 73B to 73G |
| scientific research ...................................................................... | 73A |
| roads | |
| see timber | |
| royalties | |
| royalty paid where tax instalment deductions have not been made by the payer, no deduction for .................... |
221YRA
|
| scientific research | |
| see research & development | |
| securities | |
| qualifying securities .................................................................. | 159GP to 159GZ |
| substituted securities ................................................................. | 23K |
| traditional securities, loss on disposal or redemption of ..... | 70B |
| shares | |
| buy-backs ................................................................................... | 159GZZZJ to 159GZZZT |
| cancellation of subsidiary’s shares in holding company ... | 159GZZZC to 159GZZZI |
| employee share acquisition schemes, deduction for provider of qualifying shares or rights ............................. |
139DC
|
| see also dividends and securities | |
| State Bank of NSW | |
| no deduction under section 82AAC ....................................... | 121EP |
| State or Territory bodies (STBs) | |
| body ceasing to be STB, some deductions not allowed ..... | 24AW to 24AYA |
| subscriptions to associations | |
| ....................................................................................................... | 73 |
| substantiation | |
| work, travel and car expenses.................................................. | Division 900 |
| successive deductions | |
| setting off deductions where more than one class of income .................................................................................. |
49
|
| superannuation | |
| see insurance and annuity business and interest | |
| superannuation and related business | |
| generally ...................................................................................... | 267 to 315F |
| asset disposals ............................................................................ | 304 |
| death or disability benefits, deduction for future service element ................................................................................. |
279B
|
| death or disability cover, premiums for ................................ | 279 |
| detriment payments .................................................................. | 279D |
| financial assistance levy .......................................................... | 315B, 315F |
| superannuation—eligible person contributions | |
| general ......................................................................................... | 82AAS to 82AAT |
| limit on deduction ..................................................................... | 26-55 |
| superannuation—employer contributions | |
| generally ...................................................................................... | 82AAA to 82AAR |
| contributions to eligible superannuation fund for employees ............................................................................ |
82AAC
|
| contributions to non-complying funds .................................. | 82AAD, 82AAE |
| deposits under the Small Superannuation Accounts Act 1995 ...................................................................................... |
82AAF
|
| no deduction for under any other provision of the Act ...... | 82AAR |
| superannuation guarantee charge | |
| no deduction for ........................................................................ | 51(9) |
| superannuation levy | |
| late lodgment amount, no deduction for .............................. | 51(8) |
| tax agent’s fees | |
| see tax related expenses | |
| tax avoidance schemes | |
| companies, use of tax losses or deductions to avoid tax ... | Division 175 |
| diverted assessable income ..................................................... | 121F to 121L |
| dividend stripping ...................................................................... | 46A, 177E |
| gifts .............................................................................................. | 78A |
| international profit shifting, transfer pricing ......................... | 136AA to 136AG |
| prepaid outgoings to avoid tax ............................................... | 82KJ |
| recouped expenditure ............................................................... | 82KH to 82KL |
| tax avoidance scheme, no deduction allowable where deduction the result of. ...................................................... |
177A to 177G
|
| trading stock ............................................................................... | 31C, 52A |
| tax file number (TFN) withholding tax | |
| investor, no deduction for ........................................................ | 221YHZZA |
| tax losses | |
| bad debts, companies ............................................................... | 63CA |
| change of ownership or control of a company | |
| generally ................................................................... | Division 165 |
| for earlier income years ......................................... | Subdivision 165-A |
| for income year of the change ............................. | Subdivision 165-B |
| earlier income years .................................................................. | Division 36 |
| film losses ................................................................................... | Subdivision 375-G |
| pooled development funds ...................................................... | Subdivision 195‑A |
| transfer between companies in same wholly‑owned
group ..................................................................................... |
Subdivision 170-A
|
| tax related expenses | |
| ....................................................................................................... | 69 |
| telephone lines | |
| see primary production | |
| timber | |
| access roads for timber operations, expenditure on ........... | 124F |
| land attributable to felled timber, part of purchase price .. | 124J |
| mill buildings, expenditure on ................................................. | 124JA to 124JD |
| trading ships | |
| see depreciation | |
| trading stock | |
| Commissioner may determine whether consideration paid for chose in action is reasonable ..................................... |
52A
|
| excess of opening stock over closing value .......................... | 28(3) |
| expenditure deemed not to be of a capital nature .............. | 51(2) |
| prepayments, when stock becomes trading stock on
hand ...................................................................................... |
51(2A)
|
| see also tax avoidance schemes | |
| traditional securities | |
| see securities | |
| training guarantee | |
| training guarantee charge, no deduction for ........................ | 51(7) |
| transfer pricing | |
| generally ...................................................................................... | 136AA to 136AG |
| adjustments to deductions ...................................................... | 136AF |
| travel expenses | |
| accompanying relatives, no deduction for some travel expenses ............................................................................... |
51AG
|
| see also substantiation | |
| trusts | |
| trust income, deductions considered in calculating ............. | 95 to 102 |
| unit trusts .................................................................................... | 102D to 102L |
| see also non-resident trust estates and public trading trusts | |
| uniforms | |
| non-compulsory uniforms ....................................................... | 51AL |
| uranium mining | |
| see mining | |
| water | |
| see primary production | |
| work expenses | |
| see substantiation | |
The provisions set out in the list allow you a *tax offset.
Provisions of the Income Tax Assessment Act 1997 are identified in normal text. The other provisions, in bold, are provisions of the Income Tax Assessment Act 1936.
| Aboriginal study assistance | |
| see social security and other benefit payments | |
| annual leave | |
| see leave payments | |
| annuity | |
| see eligible termination payments | |
| approved deposit funds (ADFs) | |
| see dividends | |
| averaging | |
| see primary production | |
| bonuses | |
| see life assurance | |
| child | |
| hardship ...................................................................................... | 102AJ |
| increased tax payable under Part III Division 6AA, unreasonable ....................................................................... |
102AH
|
| trust income ................................................................................ | 100(2) |
| child/housekeeper | |
| see dependants | |
| Commonwealth Savings Bank | |
| payments by .............................................................................. | 160ABB |
| corporate unit trusts | |
| see dividends | |
| defence force | |
| members serving overseas ....................................................... | 79B |
| dependants | |
| child of person keeping house for the person........................ | 159J |
| housekeeper, caring for child, invalid relative or disabled spouse ................................................................................... |
159L
|
| invalid relative ........................................................................... | 159J |
| parents/parents in law .............................................................. | 159J |
| sole parent .................................................................................. | 159K |
| spouse .......................................................................................... | 159J |
| see also medical expenses | |
| dividends | |
| franked, received by: | |
| general ......................................................................................... | 160AQU |
| beneficiaries of a trust .............................................................. | 160AQX |
| company through a partnership or trust ............................... | 160APQ |
| life assurance companies ......................................................... | 160AQZA |
| partners ....................................................................................... | 160AQZ |
| superannuation funds, approved deposit funds (ADFs) and pooled superannuation trusts (PSTs) ............................... |
160AQYA
|
| trustees ........................................................................................ | 160AQY |
| received by: | |
| company as shareholder .......................................................... | 46(2) |
| company as shareholder, part of dividend stripping operation .............................................................................. |
46A
|
| company through a partnership or trust ............................... | 45Z |
| corporate unit trusts .................................................................. | 102L |
| public trading trust .................................................................... | 102T |
| drought relief | |
| see social security and other benefit payments | |
| eligible termination payments (ETPs) | |
| eligible termination payment annuity, rebatable ................ | 159SU |
| superannuation contributions ................................................. | 159SZ |
| superannuation pension, rebatable ........................................ | 159SM |
| termination payments .............................................................. | 159SA |
| see also leave payments | |
| films | |
| see foreign tax | |
| foreign tax | |
| film income, credit for overseas tax paid ............................. | 160AGA(3) |
| foreign income, credit for overseas tax paid ........................ | 160AF |
| shipping income, credit for overseas tax paid ...................... | 160AGB(3) |
| franked dividends | |
| see dividends | |
| hardship | |
| see child | |
| heritage conservation | |
| ....................................................................................................... | 159UQ to 159UT |
| housekeeper | |
| see dependants | |
| imputation | |
| see dividends | |
| inter-corporate dividends | |
| see dividends | |
| interest | |
| tax paid on by company ......................................................... | 127 |
| invalid relative | |
| see dependants | |
| leave payments | |
| annual leave, unused ................................................................ | 159SA |
| long service leave, unused ....................................................... | 159SA |
| legal disability | |
| see trusts | |
| life assurance | |
| bonus, receipt of ........................................................................ | 160AAB |
| loan interest | |
| securities issued before 1 November 1968, received on...... | 160AB |
| long service leave | |
| see leave payments | |
| low income earner | |
| ....................................................................................................... | 159N |
| lump sum income arrears | |
| receipt of ..................................................................................... | 159ZRA, 159ZRB |
| medical expenses | |
| payment of ................................................................................. | 159P |
| non-resident beneficiary | |
| see trusts | |
| non-resident trust estate | |
| see trusts | |
| overseas defence force service | |
| see defence force | |
| overseas tax | |
| see foreign tax | |
| parent/parent-in-law | |
| see dependants | |
| partnerships | |
| see dividends | |
| pension | |
| see social security and other benefit payments | |
| pooled superannuation trusts (PSTs) | |
| see dividends | |
| primary production | |
| averaging of income ................................................................. | 156 |
| drought relief payments see social security and other benefit payments | |
| public trading trust | |
| see dividends | |
| public unit trust | |
| see dividends | |
| rebatable ETP annuity | |
| see eligible termination payments | |
| residents of isolated areas | |
| see zone | |
| shipping income | |
| see foreign tax | |
| sickness benefits | |
| see social security and other benefit payments | |
| social security and other benefit payments | |
| Aboriginal study assistance scheme ...................................... | 160AAA(3) |
| children, assistance for isolated .............................................. | 160AAA(3) |
| drought relief, farm household support ................................. | 160AAA(3) |
| pension, social security pension and veteran’s pension ..... | 160AAA(2) |
| textile, clothing and footwear allowance .............................. | 160AAA(3) |
| unemployment, sickness and other benefit payments under the Social Security Act 1991 ................................. |
160AAA(3)
|
| sole parent | |
| see dependants | |
| spouse | |
| see dependants | |
| superannuation | |
| see eligible termination payments | |
| superannuation funds | |
| see dividends | |
| tax credit | |
| see foreign tax | |
| termination payments | |
| see eligible termination payments | |
| trustee | |
| see dividends and trusts | |
| trusts | |
| non-resident beneficiary .......................................................... | 98A(2) |
| non-resident trust estate, winding-up ..................................... | 102AAN |
| trust income of beneficiary with legal disability .................. | 100(2) |