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Income Tax Assessment Act 1997
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C2004C00441
01 December 2004
-
21 February 2005
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Volume 1
Chapter 1—Introduction and core provisions
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Part 1-1—Preliminary
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Division 1—Preliminary
1-1 Short title [see Note 1]
1-2 Commencement
1-3 Differences in style not to affect meaning
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Part 1-2—A Guide to this Act
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Division 2—How to use this Act
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Subdivision 2-A—How to find your way around
2-1 The design
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Subdivision 2-B—How the Act is arranged
2-5 The pyramid
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Subdivision 2-C—How to identify defined terms and find the definitions
2-10 When defined terms are identified
2-15 When terms are not identified
2-20 Identifying the defined term in a definition
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Subdivision 2-D—The numbering system
2-25 Purposes
2-30 Gaps in the numbering
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Subdivision 2-E—Status of Guides and other non-operative material
2-35 Non-operative material
2-40 Guides
2-45 Other material
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Division 3—What this Act is about
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
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Part 1-3—Core provisions
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Division 4—How to work out the income tax payable on your taxable income
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
4-25 Special provisions for working out your basic income tax liability
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Division 6—Assessable income and exempt income
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Guide to Division 6
6-1 Diagram showing relationships among concepts in this Division
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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
6-23 Non-assessable non-exempt income
6-25 Relationships among various rules about ordinary income
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Division 8—Deductions
8-1 General deductions
8-5 Specific deductions
8-10 No double deductions
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Part 1-4—Checklists of what is covered by concepts used in the core provisions
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Division 9—Entities that must pay income tax
9-1A Effect of this Division
9-1 List of entities
9-5 Entities that work out their income tax by reference to something other than taxable income
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Division 10—Particular kinds of assessable income
10-1 Effect of this Division
10-5 List of provisions about assessable income
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Division 11—Particular kinds of non-assessable income
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Subdivision 11-A—Lists of classes of exempt income
11-1A Effect of this Subdivision
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
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Subdivision 11-B—Particular kinds of non-assessable non-exempt income
11-50 Effect of this Subdivision
11-55 List of non-assessable non-exempt income provisions
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Division 12—Particular kinds of deductions
12-1 Effect of this Division
12-5 List of provisions about deductions
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Division 13—Tax offsets
13-1A Effect of this Division
13-1 List of tax offsets
Chapter 2—Liability rules of general application
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Part 2-1—Assessable income
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Division 15—Some items of assessable income
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Guide to Division 15
15-1 What this Division is about
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Operative provisions
15-3 Return to work payments
15-5 Accrued leave transfer payments
15-10 Bounties and subsidies
15-15 Profit-making undertaking or plan
15-20 Royalties
15-25 Amount received for lease obligation to repair
15-30 Insurance or indemnity for loss of assessable income
15-35 Interest on overpayments and early payments of tax
15-40 Providing mining, quarrying or prospecting information
15-45 Amounts paid under forestry agreements
15-50 Work in progress amounts
15-55 Certain amounts paid under funeral policy
15-60 Certain amounts paid under scholarship plan
15-65 Sugar industry exit grants
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Division 17—Effect of GST etc. on assessable income
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Guide to Division 17
17-1 What this Division is about
17-5 GST and increasing adjustments
17-10 Certain decreasing adjustments
17-15 Elements in calculation of amounts
17-20 GST groups and GST joint ventures
17-25 GST attributable because of the GST Transition Act
17-30 Special credits because of indirect tax transition
17-35 Certain sections not to apply to certain assets or expenditure
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Division 20—Amounts included to reverse the effect of past deductions
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Guide to Division 20
20-1 What this Division is about
20-5 Other provisions that reverse the effect of deductions
Subdivision 20-A—Insurance, indemnity or other recoupment for deductible expenses
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Guide to Subdivision 20-A
20-10 What this Subdivision is about
20-15 How to use this Subdivision
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What is an assessable recoupment?
20-20 Assessable recoupments
20-25 What is recoupment?
20-30 Tables of deductions for which recoupments are assessable
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How much is included in your assessable income?
20-35 If the expense is deductible in a single income year
20-40 If the expense is deductible over 2 or more income years
20-45 Effect of balancing charge
20-50 If the expense is only partially deductible
20-55 Meaning of previous recoupment law
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What if you can deduct a loss or outgoing incurred by another entity?
20-60 If you are the only entity that can deduct an amount for the loss or outgoing
20-65 If 2 or more entities can deduct amounts for the loss or outgoing
Subdivision 20-B—Disposal of a car for which lease payments have been deducted
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Guide to Subdivision 20-B
20-100 What this Subdivision is about
20-105 Map of this Subdivision
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The usual case
20-110 Disposal of a leased car for profit
20-115 Working out the profit on the disposal
20-120 Meaning of notional depreciation
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The associate case
20-125 Disposal of a leased car for profit
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Successive leases
20-130 Successive leases
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Previous disposals of the car
20-135 No amount included if earlier disposal for market value
20-140 Reducing the amount to be included if there has been an earlier disposal
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Miscellaneous rules
20-145 No amount included if you inherited the car
20-150 Reducing the amount to be included if another provision requires you to include an amount for the disposal
20-155 Exception for particular cars taken on hire
20-157 Exception for STS taxpayers
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Disposals of interests in a car: special rules apply
20-160 Disposal of an interest in a car
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Part 2-5—Rules about deductibility of particular kinds of amounts
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Division 25—Some amounts you can deduct
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Guide to Division 25
25-1 What this Division is about
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Operative provisions
25-5 Tax-related expenses
25-7 Advice about family tax benefit
25-10 Repairs
25-15 Amount paid for lease obligation to repair
25-20 Lease document expenses
25-25 Borrowing expenses
25-30 Expenses of discharging a mortgage
25-35 Bad debts
25-40 Loss from profit-making undertaking or plan
25-45 Loss by theft etc.
25-50 Payments of pensions, gratuities or retiring allowances
25-55 Payments to associations
25-60 Parliament election expenses
25-70 Deduction for election expenses does not extend to entertainment
25-75 Rates and land taxes on premises used to produce mutual receipts
25-80 Upgrading plant to meet GST obligations etc.
25-85 Certain returns in respect of debt interests
25-90 Deduction relating to foreign non-assessable non-exempt income
25-95 Deduction for work in progress amounts
25-105 Deductions for United Medical Protection Limited support payments
25-100 Travel between workplaces
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Division 26—Some amounts you cannot deduct, or cannot deduct in full
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Guide to Division 26
26-1 What this Division is about
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Operative provisions
26-5 Penalties
26-10 Leave payments
26-15 Franchise fees windfall tax
26-17 Commonwealth places windfall tax
26-20 Assistance to students
26-25 Interest or royalty
26-26 Non-share distributions and dividends
26-30 Relative’s travel expenses
26-35 Reducing deductions for amounts paid to related entities
26-40 Maintaining your family
26-45 Recreational club expenses
26-50 Expenses for a leisure facility or boat
26-52 Bribes to foreign public officials
26-53 Bribes to public officials
26-55 Limit on deductions
26-60 Superannuation contributions surcharge
26-65 Termination payments surcharge
26-68 Loss from disposal of eligible venture capital investments
26-70 Loss from disposal of venture capital equity
26-75 Contributions to non-complying superannuation funds
26-80 Contributions to complying superannuation funds or RSAs
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Division 27—Effect of input tax credits etc. on deductions
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Guide to Division 27
27-1 What this Division is about
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Subdivision 27-A—General
27-5 Input tax credits and decreasing adjustments
27-10 Certain increasing adjustments
27-15 GST payments
27-20 Elements in calculation of amounts
27-25 GST groups and GST joint ventures
27-30 Input tax credits attributable because of the GST Transition Act
27-35 Certain sections not to apply to certain assets or expenditure
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Subdivision 27-B—Division 40
27-80 Cost or opening adjustable value of depreciating assets reduced for input tax credits
27-85 Cost or opening adjustable value of depreciating assets reduced: decreasing adjustments
27-87 Certain decreasing adjustments included in assessable income
27-90 Cost or opening adjustable value of depreciating assets increased: increasing adjustments
27-92 Certain increasing adjustments can be deducted
27-95 Balancing adjustment events
27-100 Pooling
27-105 Other Division 40 expenditure
27-110 Input tax credit etc. relating to 2 or more things
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Division 28—Car expenses
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Guide to Division 28
28-1 What this Division is about
28-5 Map of this Division
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Subdivision 28-A—Deductions for car expenses
28-10 Application of Division 28
28-12 Car expenses
28-13 Meaning of car expense
Subdivision 28-B—Choosing which method to use
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Guide to Subdivision 28-B
28-14 What this Subdivision is about
28-15 Choosing among the 4 methods
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Operative provision
28-20 Rules governing choice of method
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Subdivision 28-C—The “cents per kilometre” method
28-25 How to calculate your deduction
28-30 Capital allowances
28-35 Substantiation
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Subdivision 28-D—The “12% of original value” method
28-45 How to calculate your deduction
28-50 Eligibility
28-55 Capital allowances
28-60 Substantiation
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Subdivision 28-E—The “one-third of actual expenses” method
28-70 How to calculate your deduction
28-75 Eligibility
28-80 Substantiation
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Subdivision 28-F—The “log book” method
28-90 How to calculate your deduction
28-95 Eligibility
28-100 Substantiation
Subdivision 28-G—Keeping a log book
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Guide to Subdivision 28-G
28-105 What this Subdivision is about
28-110 Steps for keeping a log book
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Operative provisions
28-115 Income years for which you need to keep a log book
28-120 Choosing the 12 week period for a log book
28-125 How to keep a log book
28-130 Replacing one car with another
Subdivision 28-H—Odometer records for a period
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Guide to Subdivision 28-H
28-135 What this Subdivision is about
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Operative provision
28-140 How to keep odometer records for a car for a period
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Subdivision 28-I—Retaining the log book and odometer records
28-150 Retaining the log book for the retention period
28-155 Retaining odometer records
Subdivision 28-J—Situations where you cannot use, or don’t need to use, one of the 4 methods
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Guide to Subdivision 28-J
28-160 What this Subdivision is about
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Operative provisions
28-165 Exception for particular cars taken on hire
28-170 Exception for particular cars used in particular ways
28-175 Further miscellaneous exceptions
28-180 Car expenses related to award transport payments
28-185 Application of Subdivision 28-J to recipients and payers of certain withholding payments
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Division 30—Gifts or contributions
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Guide to Division 30
30-1 What this Division is about
30-5 How to find your way around this Division
30-10 Index
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Subdivision 30-A—Deductions for gifts or contributions
30-15 Table of gifts or contributions that you can deduct
30-17 Requirements for certain recipients
Subdivision 30-B—Tables of recipients for deductible gifts
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Health
30-20 Health
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Education
30-25 Education
30-30 Gifts that must be for certain purposes
30-35 Gifts to a public fund established to benefit a rural school hostel building must satisfy certain requirements
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Research
30-40 Research
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Welfare and rights
30-45 Welfare and rights
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Defence
30-50 Defence
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Environment
30-55 The environment
30-60 Gifts to a National Parks body or conservation body must satisfy certain requirements
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Industry, trade and design
30-65 Industry, trade and design
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The family
30-70 The family
30-75 Marriage education and family and child mediation and counselling organisations must be approved
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International affairs
30-80 International affairs
30-85 Declaration must be in force at the time you make the gift
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Sports and recreation
30-90 Sports and recreation
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Philanthropic trusts
30-95 Philanthropic trusts
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Cultural organisations
30-100 Cultural organisations
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Other recipients
30-105 Other recipients
Subdivision 30-BA—Endorsement of deductible gift recipients
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Guide to Subdivision 30-BA
30-115 What this Subdivision is about
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Endorsement as a deductible gift recipient
30-120 Endorsement by Commissioner
30-125 Entitlement to endorsement
30-130 Applying for endorsement
30-135 Dealing with an application for endorsement
30-140 Notifying outcome of application for endorsement
30-145 Date of effect of endorsement
30-150 Review of refusal of endorsement
30-155 Checking entitlement to endorsement
30-160 Telling Commissioner of loss of entitlement to endorsement
30-165 Partnerships and unincorporated bodies
30-170 Revoking endorsement
30-175 Review of revocation of endorsement
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Government entities treated like entities
30-180 How this Subdivision applies to government entities
Subdivision 30-C—Rules applying to particular gifts of property
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Valuation requirements
30-200 Getting written valuations
30-205 Proceeds of the sale would have been assessable
30-210 Approved valuers
30-212 Valuations by the Commissioner
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Working out the amount you can deduct for a gift of property
30-215 How much you can deduct
30-220 Reducing the amount you can deduct
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Joint ownership of property
30-225 Gift of property by joint owners
Subdivision 30-CA—Administrative requirements relating to ABNs
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Guide to Subdivision 30-CA
30-226 What this Subdivision is about
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Requirements
30-227 Entities to which this Subdivision applies
30-228 Content of receipt for gift or contribution
30-229 Australian Business Register must show deductibility of gifts to deductible gift recipient
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Subdivision 30-D—Testamentary gifts under the Cultural Bequests Program
30-230 Testamentary gifts of property
30-235 Getting a certificate
30-240 Limit on total value of gifts for an income year
Subdivision 30-DB—Spreading certain gift and covenant deductions over up to 5 income years
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Guide to Subdivision 30-DB
30-246 What this Subdivision is about
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Operative provisions
30-247 Gifts and covenants for which elections can be made
30-248 Making an election
30-249 Effect of election
30-249A Requirements—environmental property gifts
30-249B Requirements—heritage property gifts
30-249C Requirements—certain cultural property gifts
30-249D Requirements—conservation covenants
Subdivision 30-E—Register of environmental organisations
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Guide to Subdivision 30-E
30-250 What this Subdivision is about
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Operative provisions
30-255 Establishing the register
30-260 Meaning of environmental organisation
30-265 Its principal purpose must be protecting the environment
30-270 Other requirements it must satisfy
30-275 Further requirement for a body corporate or a co-operative society
30-280 What must be on the register
30-285 Removal from the register
Subdivision 30-EA—Register of harm prevention charities
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Guide to Subdivision 30-EA
30-286 What this Subdivision is about
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Operative provisions
30-287 Establishing the register
30-288 Meaning of harm prevention charity
30-289 Principal activity—promoting the prevention or control of harm or abuse
30-289A Other requirements
30-289B What must be on the register
30-289C Removal from the register
Subdivision 30-F—Register of cultural organisations
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Guide to Subdivision 30-F
30-290 What this Subdivision is about
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Operative provisions
30-295 Establishing the register
30-300 Meaning of cultural organisation
30-305 What must be on the register
30-310 Removal from the register
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Subdivision 30-G—Index to this Division
30-315 Index
30-320 Effect of this Subdivision
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Division 31—Conservation covenants
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Guide to Division 31
31-1 What this Division is about
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Operative provisions
31-5 Deduction for entering into conservation covenant
31-10 Requirements for fund, authority or institution
31-15 Valuations by the Commissioner
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Division 32—Entertainment expenses
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Guide to Division 32
32-1 What this Division is about
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Subdivision 32-A—No deduction for entertainment expenses
32-5 No deduction for entertainment expenses
32-10 Meaning of entertainment
32-15 No deduction for property used for providing entertainment
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Subdivision 32-B—Exceptions
32-20 The main exception—fringe benefits
32-25 The tables set out the other exceptions
32-30 Employer expenses
32-35 Seminar expenses
32-40 Entertainment industry expenses
32-45 Promotion and advertising expenses
32-50 Other expenses
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Subdivision 32-C—Definitions relevant to the exceptions
32-55 In-house dining facility (employer expenses table items 1.1 and 1.2)
32-60 Dining facility (employer expenses table item 1.3)
32-65 Seminars (seminar expenses table item 2.1)
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Subdivision 32-D—In-house dining facilities (employer expenses table item 1.2)
32-70 $30 is assessable for each meal provided to non-employee in an in-house dining facility
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Subdivision 32-E—Anti-avoidance
32-75 Commissioner may treat you as having incurred entertainment expense
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Subdivision 32-F—Special rules for companies and partnerships
32-80 Company directors
32-85 Directors, employees and property of wholly-owned group company
32-90 Partnerships
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Division 34—Non-compulsory uniforms
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Guide to Division 34
34-1 What this Division is about
34-3 What you need to read
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Subdivision 34-A—Application of Division 34
34-5 This Division applies to employees and others
34-7 This Division applies to employers and others
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Subdivision 34-B—Deduction for your non-compulsory uniform
34-10 What you can deduct
34-15 What is a non-compulsory uniform?
34-20 What are occupation specific clothing and protective clothing?
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Subdivision 34-C—Registering the design of a non-compulsory uniform
34-25 Application to register the design
34-30 Industry Secretary’s decision on application
34-33 Written notice of decision
34-35 When uniform becomes registered
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Subdivision 34-D—Appeals from Industry Secretary’s decision
34-40 Review of decisions by the Administrative Appeals Tribunal
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Subdivision 34-E—The Register of Approved Occupational Clothing
34-45 Keeping of the Register
34-50 Changes to the Register
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Subdivision 34-F—Approved occupational clothing guidelines
34-55 Approved occupational clothing guidelines
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Subdivision 34-G—The Industry Secretary
34-60 Industry Secretary to give Commissioner information about entries
34-65 Delegation of powers by Industry Secretary
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Division 35—Deferral of losses from non-commercial business activities
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Guide to Division 35
35-1 What this Division is about
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Operative provisions
35-5 Object
35-10 Deferral of deductions from non-commercial business activities
35-15 Modification if you have exempt income
35-20 Modification if you become bankrupt
35-25 Application of Division to certain partnerships
35-30 Assessable income test
35-35 Profits test
35-40 Real property test
35-45 Other assets test
35-50 Apportionment
35-55 Commissioner’s discretion
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Division 36—Tax losses of earlier income years
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Guide to Division 36
36-1 What this Division is about
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Subdivision 36-A—Deductions for tax losses of earlier income years
36-10 How to calculate a tax loss for an income year
36-15 How to deduct tax losses of entities other than corporate tax entities
36-17 How to deduct tax losses of corporate tax entities
36-20 Net exempt income
36-25 Special rules about tax losses
Subdivision 36-B—Effect of you becoming bankrupt
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Guide to Subdivision 36-B
36-30 What this Subdivision is about
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Operative provisions
36-35 No deduction for tax loss incurred before bankruptcy
36-40 Deduction for amounts paid for debts incurred before bankruptcy
36-45 Limit on deductions for amounts paid
Subdivision 36-C—Excess franking offsets
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Guide to Subdivision 36-C
36-50 What this Subdivision is about
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Operative provision
36-55 Converting excess franking offsets into tax loss
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Volume 2
Chapter 2—Liability rules of general application
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Part 2-10—Capital allowances: rules about deductibility of capital expenditure
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Division 40—Capital allowances
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Guide to Division 40
40-1 What this Division is about
40-10 Simplified outline of this Division
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Subdivision 40-A—Objects of Division
40-15 Objects of Division
Subdivision 40-B—Core provisions
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Guide to Subdivision 40-B
40-20 What this Subdivision is about
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Operative provisions
40-25 Deducting amounts for depreciating assets
40-30 What a depreciating asset is
40-35 Jointly held depreciating assets
40-40 Meaning of hold a depreciating asset
40-45 Assets to which this Division does not apply
40-50 Assets for which you deduct under another Subdivision
40-55 Use of certain car methods
40-60 When a depreciating asset starts to decline in value
40-65 Choice of methods to work out the decline in value
40-70 Diminishing value method
40-75 Prime cost method
40-80 When you can deduct the asset’s cost
40-85 Meaning of adjustable value and opening adjustable value of a depreciating asset
40-90 Debt forgiveness
40-95 Choice of determining effective life
40-100 Commissioner’s determination of effective life
40-102 Capped life of certain depreciating assets
40-105 Self-assessing effective life
40-110 Recalculating effective life
40-115 Splitting a depreciating asset
40-120 Replacement spectrum licences
40-125 Merging depreciating assets
40-130 Choices
40-135 Certain anti-avoidance provisions
40-140 Getting tax information from associates
40-145 Application of Criminal Code
Subdivision 40-C—Cost
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Guide to Subdivision 40-C
40-170 What this Subdivision is about
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Operative provisions
40-175 Cost
40-180 First element of cost
40-185 Amount you are taken to have paid to hold a depreciating asset or to receive a benefit
40-190 Second element of cost
40-195 Apportionment of cost
40-200 Exclusion from cost
40-205 Cost of a split depreciating asset
40-210 Cost of merged depreciating assets
40-215 Adjustment: double deduction
40-220 Cost reduced by amounts not of a capital nature
40-225 Adjustment: acquiring a car at a discount
40-230 Adjustment: car limit
Subdivision 40-D—Balancing adjustments
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Guide to Subdivision 40-D
40-280 What this Subdivision is about
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Operative provisions
40-285 Balancing adjustments
40-290 Reduction for non-taxable use
40-292 Adjustments where deductions for decline in value also allowable under section 73BA or 73BH of Income Tax Assessment Act 1936
40-295 Meaning of balancing adjustment event
40-300 Meaning of termination value
40-305 Amount you are taken to have received under a balancing adjustment event
40-310 Apportionment of termination value
40-315 Expenses of balancing adjustment event
40-320 Car to which section 40-225 applies
40-325 Adjustment: car limit
40-335 Deduction for in-house software where you will never use it
40-340 Roll-over relief
40-345 What the roll-over relief is
40-350 Additional consequences
40-360 Notice to allow transferee to work out how this Division applies
40-365 Involuntary disposals
40-370 Balancing adjustments where there has been use of different car expense methods
Subdivision 40-E—Low-value and software development pools
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Guide to Subdivision 40-E
40-420 What this Subdivision is about
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Operative provisions
40-425 Allocating assets to a low-value pool
40-430 Rules for assets in low-value pools
40-435 Private or exempt use of assets
40-440 How you work out the decline in value of assets in low-value pools
40-445 Balancing adjustment events
40-450 Software development pools
40-455 How to work out your deduction
40-460 Your assessable income includes consideration for pooled software
Subdivision 40-F—Primary production depreciating assets
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Guide to Subdivision 40-F
40-510 What this Subdivision is about
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Operative provisions
40-515 Water facilities and horticultural plants
40-520 Meaning of water facility and horticultural plant
40-525 Conditions
40-530 When a water facility or horticultural plant starts to decline in value
40-535 Meaning of horticulture and commercial horticulture
40-540 How you work out the decline in value for water facilities
40-545 How you work out the decline in value for horticultural plants
40-555 Amounts you cannot deduct
40-560 Non-arm’s length transactions
40-565 Extra deduction for destruction of a horticultural plant
40-570 How this Subdivision applies to partners and partnerships
40-575 Getting tax information if you acquire a horticultural plant
Subdivision 40-G—Capital expenditure of primary producers and other landholders
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Guide to Subdivision 40-G
40-625 What this Subdivision is about
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Operative provisions
40-630 Landcare operations
40-635 Meaning of landcare operation
40-640 Meaning of approved management plan
40-645 Electricity and telephone lines
40-650 Amounts you cannot deduct under this Subdivision
40-655 Meaning of connecting power to land or upgrading the connection and metering point
40-660 Non-arm’s length transactions
40-665 How this Subdivision applies to partners and partnerships
40-670 Approval of persons as farm consultants
40-675 Review of decisions relating to approvals
Subdivision 40-H—Capital expenditure that is immediately deductible
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Guide to Subdivision 40-H
40-725 What this Subdivision is about
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Operative provisions
40-730 Deduction for expenditure on exploration or prospecting
40-735 Deduction for expenditure on mining site rehabilitation
40-740 Meaning of ancillary mining activities and mining building site
40-745 No deduction for certain expenditure
40-750 Deduction for payments of petroleum resource rent tax
40-755 Environmental protection activities
40-760 Limits on deductions from environmental protection activities
40-765 Non-arm’s length transactions
Subdivision 40-I—Capital expenditure that is deductible over time
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Guide to Subdivision 40-I
40-825 What this Subdivision is about
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Operative provisions
40-830 Project pools
40-835 Reduction of deduction
40-840 Meaning of project amount
40-845 Project life
40-855 When you start to deduct amounts for a project pool
40-860 Meaning of mining capital expenditure
40-865 Meaning of transport capital expenditure
40-870 Meaning of transport facility
40-875 Meaning of processed minerals and minerals treatment
40-880 Business related costs
40-885 Non-arm’s length transactions
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Division 43—Deductions for capital works
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Guide to Division 43
43-1 What this Division is about
43-2 Key concepts used in this Division
Subdivision 43-A—Key operative provisions
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Guide to Subdivision 43-A
43-5 What this Subdivision is about
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Operative provisions
43-10 Deductions for capital works
43-15 Amount you can deduct
43-20 Capital works to which this Division applies
43-25 Rate of deduction
43-30 No deduction until construction is complete
43-35 Requirement for body corporate to be registered under the Industry Research and Development Act
43-40 Deduction for destruction of capital works
43-45 Certain anti-avoidance provisions
43-50 Links and signposts to other parts of the Act
43-55 Anti-avoidance—arrangement etc. with tax-exempt entity
Subdivision 43-B—Establishing the deduction base
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Guide to Subdivision 43-B
43-60 What this Subdivision is about
43-65 Explanatory material
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Operative provisions
43-70 What is construction expenditure?
43-72 Meaning of forestry road, timber operation and timber mill building
43-75 Construction expenditure area
43-80 When capital works begin
43-85 Pools of construction expenditure
43-90 Table of intended use at time of completion of construction
43-95 Meaning of hotel building and apartment building
43-100 Certificates by Industry Research and Development Board
Subdivision 43-C—Your area and your construction expenditure
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Guide to Subdivision 43-C
43-105 What this Subdivision is about
43-110 Explanatory material
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Operative provisions
43-115 Your area and your construction expenditure—owners
43-120 Your area and your construction expenditure—lessees and quasi-ownership right holders
43-125 Lessees’ or right holders’ pools can revert to owner
43-130 Identifying your area on acquisition or disposal
Subdivision 43-D—Deductible uses of capital works
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Guide to Subdivision 43-D
43-135 What this Subdivision is about
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Operative provisions
43-140 Using your area in a deductible way
43-145 Using your area in the 4% manner
43-150 Meaning of industrial activities
Subdivision 43-E—Special rules about uses
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Guide to Subdivision 43-E
43-155 What this Subdivision is about
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Operative provisions
43-160 Your area is used for a purpose if it is maintained ready for use for the purpose
43-165 Temporary cessation of use
43-170 Own use—capital works other than hotel and apartment buildings
43-175 Own use—hotel and apartment buildings
43-180 Special rules for hotel and apartment buildings
43-185 Residential or display use
43-190 Use of facilities not commonly provided, and of certain buildings used to operate a hotel, motel or guest house
43-195 Use for research and development activities must be in connection with a business
Subdivision 43-F—Calculation of deduction
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Guide to Subdivision 43-F
43-200 What this Subdivision is about
43-205 Explanatory material
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Operative provisions
43-210 Deduction for capital works begun after 26 February 1992
43-215 Deduction for capital works begun before 27 February 1992
43-220 Capital works taken to have begun earlier for certain purposes
Subdivision 43-G—Undeducted construction expenditure
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Guide to Subdivision 43-G
43-225 What this Subdivision is about
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Operative provisions
43-230 Calculating undeducted construction expenditure—common step
43-235 Post-26 February 1992 undeducted construction expenditure
43-240 Pre-27 February 1992 undeducted construction expenditure
Subdivision 43-H—Balancing deduction on destruction of capital works
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Guide to Subdivision 43-H
43-245 What this Subdivision is about
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Operative provisions
43-250 The amount of the balancing deduction
43-255 Amounts received or receivable
43-260 Apportioning amounts received for destruction
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Division 45—Disposal of leases and leased plant
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Guide to Division 45
45-1 What this Division is about
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Operative provisions
45-5 Disposal of leased plant or lease
45-10 Disposal of interest in partnership
45-15 Disposal of shares in 100% subsidiary that leases plant
45-20 Disposal of shares in 100% subsidiary that leases plant in partnership
45-25 Group members liable to pay outstanding tax
45-30 Reduction for certain plant acquired before 21.9.99
45-35 Limit on amount included for plant for which there is a CGT exemption
45-40 Meaning of plant and written down value
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Part 2-15—Non-assessable income
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Division 50—Exempt entities
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Subdivision 50-A—Various exempt entities
50-1 Entities whose ordinary income and statutory income is exempt
50-5 Charity, education, science and religion
50-10 Community service
50-15 Employees and employers
50-25 Government
50-30 Health
50-35 Mining
50-40 Primary and secondary resources, and tourism
50-45 Sports, culture, film and recreation
50-50 Special conditions for items 1.1 and 1.2
50-52 Special condition for items 1.1, 1.5, 1.5A and 1.5B
50-55 Special conditions for items 1.3, 1.4, 6.1 and 6.2
50-57 Special condition for item 1.5
50-60 Special conditions for items 1.5A and 1.5B
50-65 Special conditions for item 1.6
50-70 Special conditions for items 1.7, 2.1, 4.1, 9.1 and 9.2
50-75 Certain distributions may be made overseas
50-80 Testamentary trusts may be treated as 2 trusts
Subdivision 50-B—Endorsing charitable entities as exempt from income tax
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Guide to Subdivision 50-B
50-100 What this Subdivision is about
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Endorsing charitable entities as exempt from income tax
50-105 Endorsement by Commissioner
50-110 Entitlement to endorsement
50-115 Applying for endorsement
50-120 Dealing with an application for endorsement
50-125 Notifying outcome of application for endorsement
50-130 Date of effect of endorsement
50-135 Review of refusal of endorsement
50-140 Checking entitlement to endorsement
50-145 Telling Commissioner of loss of entitlement to endorsement
50-150 Partnerships and unincorporated bodies
50-155 Revoking endorsement
50-160 Review of revocation of endorsement
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Division 51—Exempt amounts
51-1 Amounts of ordinary income and statutory income that are exempt
51-5 Defence
51-10 Education and training
51-30 Welfare
51-32 Compensation payments for loss of tax exempt payments
51-33 Compensation payments for loss of pay and/or allowances as a Defence reservist
51-35 Payments to a full-time student at a school, college or university
51-40 Payments to a secondary student
51-50 Maintenance payments to a spouse or child
51-54 Gain or profit from disposal of eligible venture capital investments
51-55 Gain or profit from disposal of venture capital equity
51-57 Interest on judgment debt relating to personal injury
51-60 Income from GST Direct Assistance Certificate
51-65 Government co-contribution towards low income earner’s superannuation
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Division 52—Certain pensions, benefits and allowances are exempt from income tax
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Guide to Division 52
52-1 What this Division is about
Subdivision 52-A—Exempt payments under the Social Security Act 1991
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Guide to Subdivision 52-A
52-5 What this Subdivision is about
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Operative provisions
52-10 How much of a social security payment is exempt?
52-15 Supplementary amounts of payments
52-20 Tax-free amount of an ordinary payment after the death of your partner
52-25 Tax-free amount of certain bereavement lump sum payments
52-30 Tax-free amount of certain other bereavement lump sum payments
52-35 Tax-free amount of a lump sum payment made because of the death of a person you are caring for
52-40 Provisions of the Social Security Act 1991 under which payments are made
Subdivision 52-B—Exempt payments under the Veterans’ Entitlements Act 1986
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Guide to Subdivision 52-B
52-60 What this Subdivision is about
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Operative provisions
52-65 How much of a veterans’ affairs payment is exempt?
52-70 Supplementary amounts of payments
52-75 Provisions of the Veterans’ Entitlements Act 1986 under which payments are made
Subdivision 52-C—Exempt payments made because of the Veterans’ Entitlements (Transitional Provisions and Consequential Amendments) Act 1986
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Guide to Subdivision 52-C
52-100 What this Subdivision is about
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Operative provisions
52-105 Supplementary amount of a payment made under the Repatriation Act 1920 is exempt
52-110 Other exempt payments
Subdivision 52-CA—Exempt payments under the Military Rehabilitation and Compensation Act 2004
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Guide to Subdivision 52-CA
52-112 What this Subdivision is about
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Operative provisions
52-114 How much of a payment under the Military Rehabilitation and Compensation Act is exempt?
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Subdivision 52-D—Exempt payments made by the Commonwealth to reimburse certain expenditure
52-125 Private health insurance incentive payments are exempt
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Subdivision 52-F—Exemption of Commonwealth education or training payments
52-140 Supplementary amount of a Commonwealth education or training payment is exempt
52-145 Meaning of Commonwealth education or training payment
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Subdivision 52-G—Exempt payments under the A New Tax System (Family Assistance) (Administration) Act 1999
52-150 Family assistance payments are exempt
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Division 53—Various exempt payments
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Guide to Division 53
53-1 What this Division is about
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Operative provisions
53-10 Exemption of various types of payments
53-15 Supplementary amount of exceptional circumstances relief payment or farm help income support
53-20 Exemption of similar Australian and United Kingdom veterans’ payments
53-25 Amounts of farm household support converted into grants
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Division 54—Exemption for certain payments made under structured settlements and structured orders
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Guide to Division 54
54-1 What this Division is about
Subdivision 54-A—Definitions
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Operative provisions
54-5 Definitions
54-10 Meaning of structured settlement and structured order
Subdivision 54-B—Tax exemption for personal injury annuities
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Operative provisions
54-15 Personal injury annuity exemption for injured person
54-20 Lump sum compensation etc. would not have been assessable
54-25 Requirements of the annuity instrument
54-30 Requirements for payments of the annuity
54-35 Payments during the guarantee period on the death of the injured person
54-40 Requirement for minimum monthly level of support
Subdivision 54-C—Tax exemption for personal injury lump sums
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Operative provisions
54-45 Personal injury lump sum exemption for injured person
54-50 Lump sum compensation would not have been assessable
54-55 Requirements of the instrument under which the lump sum is paid
54-60 Requirements for payments of the lump sum
Subdivision 54-D—Miscellaneous
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Operative provisions
54-65 Exemption for certain payments to reversionary beneficiaries
54-70 Special provisions about trusts
54-75 Minister to arrange for review and report
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Division 55—Payments that are not exempt from income tax
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Guide to Division 55
55-1 What this Division is about
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Operative provisions
55-5 Occupational superannuation payments
55-10 Education entry payments
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Volume 3
Chapter 2—Liability rules of general application
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Part 2-15—Exempt income
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Division 58—Capital allowances for depreciating assets previously owned by an exempt entity
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Guide to Division 58
58-1 What this Division is about
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Subdivision 58-A—Application
58-5 Application of Division
58-10 When an asset is acquired in connection with the acquisition of a business
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Subdivision 58-B—Calculating decline in value of privatised assets under Division 40
58-60 Purpose of rules in this Subdivision
58-65 Choice of method to work out cost of privatised asset
58-70 Application of Division 40
58-75 Meaning of notional written down value
58-80 Meaning of undeducted pre-existing audited book value
58-85 Pre-existing audited book value of depreciating asset
58-90 Method and effective life for transition entity
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Division 59—Particular amounts of non-assessable non-exempt income
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Guide to Division 59
59-1 What this Division is about
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Operative provisions
59-5 Bonus payments made to certain older Australians
59-10 Compensation under firearms surrender arrangements
59-15 Mining payments
59-20 Taxable amounts relating to franchise fees windfall tax
59-25 Taxable amounts relating to Commonwealth places windfall tax
59-30 Amounts you must repay
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Part 2-20—Tax offsets
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Division 61—Generally applicable tax offsets
Subdivision 61-G—Private health insurance offset complementary to Private Health Insurance Incentives Act 1997
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Guide to Subdivision 61-G
61-300 What this Subdivision is about
61-305 Entitlement to the private health insurance tax offset
61-310 Amount of the private health insurance tax offset
61-315 Priority between different taxpayers
61-320 Priority agreements
Subdivision 61-H—Private health insurance offset complementary to Private Health Insurance Incentives Act 1998
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Guide to Subdivision 61-H
61-330 What this Subdivision is about
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Operative provisions
61-335 Entitlement to the private health insurance tax offset
61-340 Amount of the private health insurance tax offset
61-345 How to work out the incentive amount
Subdivision 61-I—First child tax offset (baby bonus)
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Guide to Subdivision 61-I
61-350 What this Subdivision is about
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Entitlement to the first child tax offset
61-355 Who is entitled to the tax offset
61-360 What is a child event?
61-365 First child only
61-370 Another carer with entitlement for another child
61-375 Selection rules
61-380 Special rules for death of first child
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Transferring the entitlement
61-385 You may transfer your entitlement to the tax offset
61-390 Transfer is irrevocable
61-395 Transferor is not entitled to tax offset
61-400 Transferee is entitled to tax offset
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Claiming the first child tax offset
61-405 How to claim a tax offset for a child
61-410 Claim is irrevocable
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Amount of the first child tax offset
61-415 Formula for working out amount of tax offset
61-420 Component of formula—entitlement amount
61-425 Component of formula—total of the entitlement days
61-430 What is your base year?
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Division 65—Tax offset carry forward rules
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Guide to Division 65
65-10 What this Division is about
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Operative provisions
65-20 Which tax offsets this Division applies to
65-25 When you can carry forward a tax offset
65-30 Amount carried forward
65-35 How to apply carried forward tax offsets
65-40 When a company cannot apply a tax offset
65-50 Effect of bankruptcy
65-55 Deduction for amounts paid for debts incurred before bankruptcy
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Division 67—Refundable tax offset rules
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Guide to Division 67
67-10 What this Division is about
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Operative provisions
67-20 Which tax offsets this Division applies to
67-25 Tax offsets that are subject to the refundable tax offset rules
67-30 When you can get a refund of a tax offset [see Note 5]
67-35 Amount of refund
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Part 2-25—Trading stock
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Division 70—Trading stock
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Guide to Division 70
70-1 What this Division is about
70-5 The 3 key features of tax accounting for trading stock
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Subdivision 70-A—What is trading stock
70-10 Meaning of trading stock
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Subdivision 70-B—Acquiring trading stock
70-15 In which income year do you deduct an outgoing for trading stock?
70-20 Non-arm’s length transactions
70-25 Cost of trading stock is not a capital outgoing
70-30 Starting to hold as trading stock an item you already own
Subdivision 70-C—Accounting for trading stock you hold at the start or end of the income year
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General rules
70-35 You include the value of your trading stock in working out your assessable income and deductions
70-40 Value of trading stock at start of income year
70-45 Value of trading stock at end of income year
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Special valuation rules
70-50 Valuation if trading stock obsolete etc.
70-55 Working out the cost of natural increase of live stock
70-60 Valuation of horse breeding stock
70-65 Working out the horse opening value and the horse reduction amount
70-70 Valuing interests in FIFs
Subdivision 70-D—Assessable income arising from disposals of trading stock and certain other assets
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Guide to Subdivision 70-D
70-75 What this Subdivision is about
70-80 Why the rules in this Subdivision are necessary
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Operative provisions
70-85 Application of this Subdivision to certain other assets
70-90 Assessable income on disposal of trading stock outside the ordinary course of business
70-95 Purchase price is taken to be market value
70-100 Notional disposal when you stop holding an item as trading stock
70-105 Death of owner
70-110 You stop holding an item as trading stock but still own it
70-115 Compensation for lost trading stock
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Subdivision 70-E—Miscellaneous
70-120 Deducting capital costs of acquiring trees
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Part 2-42—Personal services income
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Division 84—Introduction
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Guide to Part 2-42
84-1 What this Part is about
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Operative provisions
84-5 Meaning of personal services income
84-10 This Part does not imply that individuals are employees
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Division 85—Deductions relating to personal services income
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Guide to Division 85
85-1 What this Division is about
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Operative provisions
85-5 Object of this Division
85-10 Deductions for non-employees relating to personal services income
85-15 Deductions for rent, mortgage interest, rates and land tax
85-20 Deductions for payments to associates etc.
85-25 Deductions for superannuation for associates
85-30 Exception: personal services businesses
85-35 Exception: employees, office holders and religious practitioners
85-40 Application of Subdivision 900-B to individuals who are not employees
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Division 86—Alienation of personal services income
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Guide to Division 86
86-1 What this Division is about
86-5 A simple description of what this Division does
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Subdivision 86-A—General
86-10 Object of this Division
86-15 Effect of obtaining personal services income through a personal services entity
86-20 Offsetting the personal services entity’s deductions against personal services income
86-25 Apportionment of entity maintenance deductions among several individuals
86-27 Deduction for net personal services income loss
86-30 Assessable income etc. of the personal services entity
86-35 Later payments of, or entitlements to, personal services income to be disregarded for income tax purposes
86-40 Salary payments shortly after an income year
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Subdivision 86-B—Entitlement to deductions
86-60 General rule for deduction entitlements of personal services entities
86-65 Entity maintenance deductions
86-70 Car expenses
86-75 Superannuation
86-80 Salary or wages promptly paid
86-85 Deduction entitlements of personal services entities for amounts included in an individual’s assessable income
86-87 Personal services entity cannot deduct net personal services income loss
86-90 Application of Divisions 28 and 900 to personal services entities
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Division 87—Personal services businesses
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Guide to Division 87
87-1 What this Division is about
87-5 Diagram showing the operation of this Division
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Subdivision 87-A—General
87-10 Object of this Division
87-15 What is a personal services business?
87-18 The results test for a personal services business
87-20 The unrelated clients test for a personal services business
87-25 The employment test for a personal services business
87-30 The business premises test for a personal services business
87-35 Personal services income from Australian government agencies
87-40 Application of this Division to certain agents
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Subdivision 87-B—Personal services business determinations
87-60 Personal services business determinations for individuals
87-65 Personal services business determinations for personal services entities
87-70 Applying etc. for personal services business determinations
87-75 When personal services business determinations have effect
87-80 Revoking personal services business determinations
87-85 Review of decisions
Chapter 3—Specialist liability rules
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Part 3-1—Capital gains and losses: general topics
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Division 100—A Guide to capital gains and losses
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General overview
100-1 What this Division is about
100-5 Effect of this Division
100-10 Fundamentals of CGT
100-15 Overview of Steps 1 and 2
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Step 1—Have you made a capital gain or a capital loss?
100-20 What events attract CGT?
100-25 What are CGT assets?
100-30 Does an exception or exemption apply?
100-33 Can there be a roll-over?
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Step 2—Work out the amount of the capital gain or loss
100-35 What is a capital gain or loss?
100-40 What factors come into calculating a capital gain or loss?
100-45 How to calculate the capital gain or loss for most CGT events
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Step 3—Work out your net capital gain or loss for the income year
100-50 How to work out your net capital gain or loss
100-55 How do you comply with CGT?
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Keeping records for CGT purposes
100-60 Why keep records?
100-65 What records?
100-70 How long you need to keep records
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Division 102—Assessable income includes net capital gain
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Guide to Division 102
102-1 What this Division is about
102-3 Concessions in working out your net capital gain
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Operative provisions
102-5 Assessable income includes net capital gain
102-10 How to work out your net capital loss
102-15 How to apply net capital losses
102-20 Ways you can make a capital gain or a capital loss
102-22 Amounts of capital gains and losses
102-23 CGT event still happens even if gain or loss disregarded
102-25 Order of application of CGT events
102-30 Exceptions and modifications
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Division 103—General rules
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Guide to Division 103
103-1 What this Division is about
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Operative provisions
103-5 Giving property as part of a transaction
103-10 Entitlement to receive money or property
103-15 Requirement to pay money or give property
103-25 Choices
103-30 Reduction of cost base etc. by net input tax credits
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Division 104—CGT events
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Guide to Division 104
104-1 What this Division is about
104-5 Summary of the CGT events
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Subdivision 104-A—Disposals
104-10 Disposal of a CGT asset: CGT event A1
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Subdivision 104-B—Use and enjoyment before title passes
104-15 Use and enjoyment before title passes: CGT event B1
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Subdivision 104-C—End of a CGT asset
104-20 Loss or destruction of a CGT asset: CGT event C1
104-25 Cancellation, surrender and similar endings: CGT event C2
104-30 End of option to acquire shares etc.: CGT event C3
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Subdivision 104-D—Bringing into existence a CGT asset
104-35 Creating contractual or other rights: CGT event D1
104-40 Granting an option: CGT event D2
104-45 Granting a right to income from mining: CGT event D3
104-47 Conservation covenants: CGT event D4
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Subdivision 104-E—Trusts
104-55 Creating a trust over a CGT asset: CGT event E1
104-60 Transferring a CGT asset to a trust: CGT event E2
104-65 Converting a trust to a unit trust: CGT event E3
104-70 Capital payment for trust interest: CGT event E4
104-71 Adjustment of non-assessable part
104-72 Reducing your capital gain under CGT event E4 if you are a trustee
104-75 Beneficiary becoming entitled to a trust asset: CGT event E5
104-80 Disposal to beneficiary to end income right: CGT event E6
104-85 Disposal to beneficiary to end capital interest: CGT event E7
104-90 Disposal by beneficiary of capital interest: CGT event E8
104-95 Making a capital gain
104-100 Making a capital loss
104-105 Creating a trust over future property: CGT event E9
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Subdivision 104-F—Leases
104-110 Granting a lease: CGT event F1
104-115 Granting a long-term lease: CGT event F2
104-120 Lessor pays lessee to get lease changed: CGT event F3
104-125 Lessee receives payment for changing lease: CGT event F4
104-130 Lessor receives payment for changing lease: CGT event F5
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Subdivision 104-G—Shares
104-135 Capital payment for shares: CGT event G1
104-145 Liquidator declares shares worthless: CGT event G3
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Subdivision 104-H—Special capital receipts
104-150 Forfeiture of deposit: CGT event H1
104-155 Receipt for event relating to a CGT asset: CGT event H2
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Subdivision 104-I—Australian residency ends
104-160 Individual or company stops being resident: CGT event I1
104-165 Exception for individual who stops being resident
104-170 Trust stops being a resident trust: CGT event I2
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Subdivision 104-J—CGT events relating to roll-overs
104-175 Company ceasing to be member of wholly-owned group after roll-over: CGT event J1
104-180 Sub-group break-up
104-182 Consolidated group break-up
104-185 Change of status of replacement asset for a roll-over under Subdivision 152-E: CGT event J2
104-190 Change of circumstances where a share or interest is a replacement asset for a roll-over under Subdivision 152-E: CGT event J3
104-195 Trust failing to cease to exist after roll-over under Subdivision 124-N: CGT event J4
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Subdivision 104-K—Other CGT events
104-210 Bankrupt pays amount in relation to debt: CGT event K2
104-215 Asset passing to tax-advantaged entity: CGT event K3
104-220 CGT asset starts being trading stock: CGT event K4
104-225 Special collectable losses: CGT event K5
104-230 Pre-CGT shares or trust interest: CGT event K6
104-235 Balancing adjustment events for depreciating assets and section 73BA depreciating assets: CGT event K7
104-240 Working out capital gain or loss for CGT event K7: general case
104-245 Working out capital gain or loss for CGT event K7: pooled assets
104-250 Direct value shifts
104-255 Carried interests: CGT event K9
104-260 Certain short-term forex realisation gains: CGT event K10
104-265 Certain short-term forex realisation losses: CGT event K11
104-270 Foreign hybrids: CGT event K12
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Subdivision 104-L—Consolidated groups and MEC groups
104-500 Loss of pre-CGT status of membership interests in entity becoming subsidiary member: CGT event L1
104-505 Where pre-formation intra-group roll-over reduction results in negative allocable cost amount: CGT event L2
104-510 Where tax cost setting amounts for retained cost base assets exceeds joining allocable cost amount: CGT event L3
104-515 Where no reset cost base assets and excess of net allocable cost amount on joining: CGT event L4
104-520 Where amount remaining after step 4 of leaving allocable cost amount is negative: CGT event L5
104-525 Error in calculation of tax cost setting amount for joining entity’s assets: CGT event L6
104-530 Discharged amount of liability differs from amount for allocable cost amount purposes: CGT event L7
104-535 Where reduction in tax cost setting amounts for reset cost base assets cannot be allocated: CGT event L8
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Division 106—Entity making the gain or loss
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Guide to Division 106
106-1 What this Division is about
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Subdivision 106-A—Partnerships
106-5 Partnerships
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Subdivision 106-B—Bankruptcy and liquidation
106-30 Effect of bankruptcy
106-35 Effect of liquidation
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Subdivision 106-C—Absolutely entitled beneficiaries
106-50 Absolutely entitled beneficiaries
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Subdivision 106-D—Security holders
106-60 Acts by security holders
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Division 108—CGT assets
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Guide to Division 108
108-1 What this Division is about
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Subdivision 108-A—What a CGT asset is
108-5 CGT assets
108-7 Interest in CGT assets as joint tenants
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Subdivision 108-B—Collectables
108-10 Losses from collectables to be offset only against gains from collectables
108-15 Sets of collectables
108-17 Cost base of a collectable
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Subdivision 108-C—Personal use assets
108-20 Losses from personal use assets must be disregarded
108-25 Sets of personal use assets
108-30 Cost base of a personal use asset
Subdivision 108-D—Separate CGT assets
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Guide to Subdivision 108-D
108-50 What this Subdivision is about
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Operative provisions
108-55 When is a building a separate asset from land?
108-60 Depreciating asset that is part of a building is a separate asset
108-65 Land adjacent to land acquired before 20 September 1985
108-70 When is a capital improvement a separate asset?
108-75 Capital improvements to CGT assets for which a roll-over may be available
108-80 Deciding if capital improvements are related to each other
108-85 Meaning of improvement threshold
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Division 109—Acquisition of CGT assets
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Guide to Division 109
109-1 What this Division is about
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Subdivision 109-A—Operative rules
109-5 General acquisition rules
109-10 When you acquire a CGT asset without a CGT event
109-15 Exceptions
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Subdivision 109-B—Signposts to other acquisition rules
109-50 Effect of this Subdivision
109-55 Other acquisition rules
109-60 Acquisition rules outside this Part and Part 3-3
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Division 110—Cost base and reduced cost base
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Guide to Division 110
110-1 What this Division is about
110-5 Modifications to general rules
110-10 Rules about cost base not relevant for some CGT events
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Subdivision 110-A—Cost base
110-25 General rules about cost base
110-35 Incidental costs
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What does not form part of the cost base
110-37 Expenditure forming part of cost base or element
110-40 Assets acquired before 7.30 pm on 13 May 1997
110-43 Partnership interests acquired before 7.30 pm on 13 May 1997
110-45 Assets acquired after 7.30 pm on 13 May 1997
110-50 Partnership interests acquired after 7.30 pm on 13 May 1997
110-53 Exceptions to application of sections 110-40 and 110-50
110-54 Debt deductions disallowed by thin capitalisation rules
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Subdivision 110-B—Reduced cost base
110-55 General rules about reduced cost base
110-60 Reduced cost base for partnership assets
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Division 112—Modifications to cost base and reduced cost base
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Guide to Division 112
112-1 What this Division is about
112-5 Discussion of modifications
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Subdivision 112-A—General modifications
112-15 General rule for replacement modifications
112-20 Market value substitution rule
112-25 Split, changed or merged assets
112-30 Apportionment rules
112-35 Assumption of liability rule
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Subdivision 112-B—Finding tables for special rules
112-40 Effect of this Subdivision
112-45 CGT events
112-48 Gifts acquired by associates
112-50 Main residence
112-53 Scrip for scrip roll-over
112-54 Demergers
112-55 Effect of you dying
112-60 Bonus shares or units
112-65 Rights
112-70 Convertible interests
112-75 Employee share schemes
112-77 Exchangeable interests
112-80 Leases
112-85 Options
112-87 Residency
112-90 An asset stops being a pre-CGT asset
112-92 Demutualisation of certain entities
112-95 Transfer of tax losses and net capital losses within wholly-owned groups of companies
112-97 Modifications outside this Part and Part 3-3
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Subdivision 112-C—Replacement-asset roll-overs
112-100 Effect of this Subdivision
112-105 What is a replacement-asset roll-over?
112-110 How is the cost base of the replacement asset modified?
112-115 Table of replacement-asset roll-overs
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Subdivision 112-D—Same-asset roll-overs
112-135 Effect of this Subdivision
112-140 What is a same-asset roll-over?
112-145 How is the cost base of the asset modified?
112-150 Table of same-asset roll-overs
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Division 114—Indexation of cost base
114-1 Indexing elements of cost base
114-5 When indexation relevant
114-10 Requirement for 12 months ownership
114-15 Cost base modifications
114-20 When expenditure is incurred for roll-overs
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Division 115—Discount capital gains and trusts’ net capital gains
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Guide to Division 115
115-1 What this Division is about
Subdivision 115-A—Discount capital gains
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What is a discount capital gain?
115-5 What is a discount capital gain?
115-10 Who can make a discount capital gain?
115-15 Discount capital gain must be made after 21 September 1999
115-20 Discount capital gain must not have indexed cost base
115-25 Discount capital gain must be on asset acquired at least 12 months before
115-30 Special rules about time of acquisition
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What are not discount capital gains?
115-40 Capital gain resulting from agreement made within a year of acquisition
115-45 Capital gain from equity in an entity with newly acquired assets
115-50 Discount capital gain from equity in certain entities
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Subdivision 115-B—Discount percentage
115-100 What is the discount percentage for a discount capital gain
Subdivision 115-C—Rules about trusts with net capital gains
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Guide to Subdivision 115-C
115-200 What this Division is about
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Operative provisions
115-210 When this Subdivision applies
115-215 Assessing presently entitled beneficiaries
115-220 Special rule for assessing trustee under subsection 98(3) of the Income Tax Assessment Act 1936
115-225 Special rule for assessing trustee under section 99A of the Income Tax Assessment Act 1936
Subdivision 115-D—Tax relief for shareholders in listed investment companies
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Guide to Subdivision 115-D
115-275 What this Subdivision is about
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Operative provisions
115-280 Deduction for certain dividends
115-285 Meaning of LIC capital gain
115-290 Meaning of listed investment company
115-295 Maintaining records
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Division 116—Capital proceeds
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Guide to Division 116
116-1 What this Division is about
116-5 General rules
116-10 Modifications to general rules
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General rules
116-20 General rules about capital proceeds
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Modifications to general rules
116-25 Table of modifications to the general rules
116-30 Market value substitution rule: modification 1
116-40 Apportionment rule: modification 2
116-45 Non-receipt rule: modification 3
116-50 Repaid rule: modification 4
116-55 Assumption of liability rule: modification 5
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Special rules
116-65 Disposal of a CGT asset the subject of an option
116-70 Option requiring both acquisition and disposal
116-75 Special rule for CGT event happening to a lease
116-80 Special rule if CGT asset is shares or an interest in a trust
116-85 Section 47A of 1936 Act applying to rolled-over asset
116-95 Company changes residence from an unlisted country
116-100 Gifts of property
116-105 Conservation covenants
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Division 118—Exemptions
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Guide to Division 118
118-1 What this Division is about
Subdivision 118-A—General exemptions
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Exempt assets
118-5 Cars, motor cycles and valour decorations
118-10 Collectables and personal use assets
118-12 Assets used to produce exempt income etc.
118-13 Shares in a PDF
118-14 GST Direct Assistance Certificate
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Anti-overlap provisions
118-20 Reducing capital gains if amount otherwise assessable
118-21 Carried interests
118-22 Eligible termination payments
118-24 Depreciating assets and section 73BA depreciating assets
118-25 Trading stock
118-30 Film copyright
118-35 Research and development
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Exempt or loss-denying transactions
118-37 Compensation, damages etc.
118-40 Expiry of a lease
118-42 Transfer of stratum units
118-45 Sale of rights to mine
118-55 Foreign currency hedging gains and losses
118-60 Certain gifts
118-65 Later distributions of personal services income
118-70 Transactions by exempt entities
Subdivision 118-B—Main residence
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Guide to Subdivision 118-B
118-100 What this Subdivision is about
118-105 Map of this Subdivision
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Basic case and concepts
118-110 Basic case
118-115 Meaning of dwelling
118-120 Extension to adjacent land
118-125 Meaning of ownership period
118-130 Meaning of ownership interest in land or a dwelling
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Rules that may extend the exemption
118-135 Moving into a dwelling
118-140 Changing main residences
118-145 Absences
118-150 If you build, repair or renovate a dwelling
118-155 Where individual referred to in section 118-150 dies
118-160 Destruction of dwelling and sale of land
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Rules that may limit the exemption
118-165 Separate CGT event for adjacent land or other structures
118-170 Spouse having different main residence
118-175 Dependent child having different main residence
118-180 Acquisition of dwelling from company or trust on marriage breakdown—roll-over provision applying
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Partial exemption rules
118-185 Partial exemption where dwelling was your main residence during part only of ownership period
118-190 Use of dwelling for producing assessable income
118-192 Special rule for first use to produce income
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Dwellings acquired from deceased estates
118-195 Dwelling acquired from a deceased estate
118-197 Special rule for surviving joint tenant
118-200 Partial exemption for deceased estate dwellings
118-205 Adjustment if dwelling inherited from deceased individual
118-210 Trustee acquiring dwelling under will
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Subdivision 118-D—Insurance and superannuation
118-300 Insurance policies
118-305 Superannuation
118-310 RSA’s
118-315 Superannuation agreements under the Family Law Act
118-315 Segregated exempt assets of life insurance companies
118-320 Segregated current pension assets of a complying superannuation entity
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Subdivision 118-E—Units in pooled superannuation trusts
118-350 Units in pooled superannuation trusts
118-355 Segregated exempt superannuation assets of pooled superannuation trust
Subdivision 118-F—Venture capital investment
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Guide to Subdivision 118-F
118-400 What this Subdivision is about
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Operative provisions
118-405 Exemption for certain foreign venture capital investments through venture capital limited partnerships
118-410 Exemption for certain foreign venture capital investments through Australian venture capital funds of funds
118-415 Exemption for certain venture capital investments by foreign residents
118-420 Meaning of eligible venture capital partner etc.
118-425 Meaning of eligible venture capital investment
118-430 Meaning of at risk
118-435 Special rule relating to investment in non-resident holding companies
118-440 Meaning of permitted entity value
118-445 Meaning of committed capital
Subdivision 118-G—Venture capital: investment by foreign superannuation funds
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Guide to Subdivision 118-G
118-500 What this Subdivision is about
118-505 Exemption for certain foreign venture capital
118-510 Meaning of resident investment vehicle
118-515 Meaning of venture capital entity
118-520 Meaning of foreign superannuation fund
118-525 Meaning of venture capital equity
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Subdivision 118-H—Demutualisation of Tower Corporation
118-550 Demutualisation of Tower Corporation
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Division 121—Record keeping
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Guide to Division 121
121-10 What this Division is about
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Operative provisions
121-20 What records you must keep
121-25 How long you must retain the records
121-30 Exceptions
121-35 Asset register entries
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Part 3-3—Capital gains and losses: special topics
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Division 122—Roll-over for the disposal of assets to, or the creation of assets in, a wholly-owned company
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Guide to Division 122
122-1 What this Division is about
Subdivision 122-A—Disposal or creation of assets by an individual or trustee to a wholly-owned company
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Guide to Subdivision 122-A
122-5 What this Subdivision is about
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When is a roll-over available
122-15 Disposal or creation of assets—wholly-owned company
122-20 What you receive for the trigger event
122-25 Other requirements to be satisfied
122-35 What if the company undertakes to discharge a liability (disposal case)
122-37 Rules for working out what a liability in respect of an asset is
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Replacement-asset roll-over if you dispose of a CGT asset
122-40 Disposal of a CGT asset
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Replacement-asset roll-over if you dispose of all the assets of a business
122-45 Disposal of all the assets of a business
122-50 All assets acquired on or after 20 September 1985
122-55 All assets acquired before 20 September 1985
122-60 Assets acquired before and after 20 September 1985
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Replacement-asset roll-over for a creation case
122-65 Creation of asset
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Same-asset roll-over consequences for the company (disposal case)
122-70 Consequences for the company (disposal case)
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Same-asset roll-over consequences for the company (creation case)
122-75 Consequences for the company (creation case)
Subdivision 122-B—Disposal or creation of assets by partners to a wholly-owned company
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Guide to Subdivision 122-B
122-120 What this Subdivision is about
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When is a roll-over available
122-125 Disposal or creation of assets—wholly-owned company
122-130 What the partners receive for the trigger event
122-135 Other requirements to be satisfied
122-140 What if the company undertakes to discharge a liability (disposal case)
122-145 Rules for working out what a liability in respect of an interest in an asset is
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Replacement-asset roll-over if partners dispose of a CGT asset
122-150 Capital gain or loss disregarded
122-155 Disposal of post-CGT or pre-CGT interests
122-160 Disposal of both post-CGT and pre-CGT interests
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Replacement-asset roll-over if the partners dispose of all the assets of a business
122-170 Capital gain or loss disregarded
122-175 Other consequences
122-180 All interests acquired on or after 20 September 1985
122-185 All interests acquired before 20 September 1985
122-190 Interests acquired before and after 20 September 1985
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Replacement-asset roll-over for a creation case
122-195 Creation of asset
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Same-asset roll-over consequences for the company (disposal case)
122-200 Consequences for the company (disposal case)
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Same-asset roll-over consequences for the company (creation case)
122-205 Consequences for the company (creation case)
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Volume 4
Chapter 3—Specialist liability rules
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Part 3-3—Capital gains and losses: special topics
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Division 124—Replacement-asset roll-overs
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Guide to Division 124
124-1 What this Division is about
124-5 How to find your way around this Division
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Subdivision 124-A—General rules
124-10 Your ownership of one CGT asset ends
124-15 Your ownership of more than one CGT asset ends
Subdivision 124-B—Asset compulsorily acquired, lost or destroyed
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When a roll-over is available
124-70 Events giving rise to a roll-over
124-75 Other requirements if you receive money
124-80 Other requirements if you receive an asset
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The consequences of a roll-over being available
124-85 Consequences for receiving money
124-90 Consequences for receiving an asset
124-95 You receive both money and an asset
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Subdivision 124-C—Statutory licences
124-140 Renewal or extension of a statutory licence
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Subdivision 124-D—Strata title conversion
124-190 Strata title conversion
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Subdivision 124-E—Exchange of shares or units
124-240 Exchange of shares in the same company
124-245 Exchange of units in the same unit trust
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Subdivision 124-F—Exchange of rights or options
124-295 Exchange of rights or option to acquire shares in a company
124-300 Exchange of rights or option to acquire units in a unit trust
Subdivision 124-G—Exchange of shares in one company for shares in another company
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Guide to Subdivision 124-G
124-350 What this Subdivision is about
124-355 Summary of rules
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Disposal case
124-360 Disposal of shares in one company for shares in another one
124-365 Other requirements to be satisfied
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Redemption or cancellation case
124-370 Redemption or cancellation of shares in one company for shares in another one
124-375 Other requirements to be satisfied
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Rules applying to both cases
124-380 Requirements to be satisfied in both cases
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Consequences for the interposed company unless consolidated group continues
124-385 Consequences for the interposed company
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Additional consequences for member if shares are trading stock or revenue assets
124-390 Deferral of profit or loss on shares
Subdivision 124-H—Exchange of units in a unit trust for shares in a company
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Guide to Subdivision 124-H
124-435 What this Subdivision is about
124-440 Summary of rules
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Disposal case
124-445 Disposal of units in a unit trust for shares in a company
124-450 Other requirements to be satisfied
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Redemption or cancellation case
124-455 Redemption or cancellation of units in a unit trust for shares in a company
124-460 Other requirements to be satisfied
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Rules applying to both cases
124-465 Requirements to be satisfied in both cases
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Consequences for the company
124-470 Consequences for the company
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Subdivision 124-I—Conversion of a body to an incorporated company
124-520 Conversion of a body to an incorporated company
Subdivision 124-J—Crown leases
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Guide to Subdivision 124-J
124-570 What this Subdivision is about
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Operative provisions
124-575 Extension or renewal of Crown lease
124-580 Meaning of Crown lease
124-585 Original right differs in area from new right
124-590 Part of original right excised
124-595 Treating parts of new right as separate assets
124-600 What is the roll-over?
124-605 Change of lessor
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Subdivision 124-K—Depreciating assets
124-655 Roll-over for depreciating assets
124-660 Right granted to associate
Subdivision 124-L—Prospecting and mining entitlements
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Guide to Subdivision 124-L
124-700 What this Subdivision is about
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Operative provisions
124-705 Extension or renewal of prospecting or mining entitlement
124-710 Meaning of prospecting entitlement and mining entitlement
124-715 Original entitlement differs in area from new entitlement
124-720 Part of original entitlement excised
124-725 Treating parts of new entitlement as separate assets
124-730 What is the roll-over?
Subdivision 124-M—Scrip for scrip roll-over
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Guide to Subdivision 124-M
124-775 What this Subdivision is about
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Operative provisions
124-780 Replacement of shares
124-781 Replacement of trust interests
124-782 Transfer or allocation of cost base of shares acquired by acquiring entity etc.
124-783 Meaning of significant stakeholder, common stakeholder, significant stake and common stake
124-784 Cost base of equity or debt given by acquiring entity to ultimate holding company
124-785 What is the roll-over?
124-790 Partial roll-over
124-795 Exceptions
124-800 Interest received for pre-CGT interest
124-810 Certain companies and trusts not regarded as having 300 members or beneficiaries
Subdivision 124-N—Disposal of assets by a trust to a company
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Guide to Subdivision 124-N
124-850 What this Subdivision is about
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Operative provisions
124-855 What this Subdivision deals with
124-860 Requirements for roll-over
124-865 Entities both choose the roll-over
124-870 Roll-over for owner of units or interests in a trust
124-875 Effect on the transferor and transferee
Subdivision 124-O—FSR (financial services reform) transitions
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Same owner roll-overs
124-880 Old licence roll-over (same owner)
124-885 Qualified licence roll-over (same owner)
124-890 Rights roll-over (same owner)
124-895 Consequences of a same owner roll-over
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New owner roll-overs
124-900 Old licence roll-over (new owner)
124-905 Qualified licence roll-over (new owner)
124-910 Rights roll-over (new owner)
124-915 Consequences of a new owner roll-over (where one CGT asset comes to an end)
124-920 Consequences of a new owner roll-over (where more than one CGT asset comes to an end)
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Extension of FSR transition period
124-925 Special extension of the 10 March 2004 cut-off date (same owner roll-overs)
124-930 Special extension of the 10 March 2004 cut-off date (new owner roll-overs)
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Division 125—Demerger relief
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Guide to Division 125
125-1 What this Division is about
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Subdivision 125-A—Object of this Division
125-5 Object of this Division
Subdivision 125-B—Consequences for owners of interests
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Guide to Subdivision 125-B
125-50 Guide to Subdivision 125-B
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Operative provisions
125-55 When a roll-over is available for a demerger
125-60 Meaning of ownership interest and related terms
125-65 Meanings of demerger group, head entity and demerger subsidiary
125-70 Meanings of demerger, demerged entity and demerging entity
125-75 Exceptions to subsection 125-70(2)
125-80 What is the roll-over?
125-85 Cost base adjustments where CGT event happens but no roll-over chosen
125-90 Cost base adjustments where no CGT event
125-95 No other cost base adjustment after demerger
125-100 No further demerger relief in some cases
Subdivision 125-C—Consequences for members of demerger group
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Guide to Subdivision 125-C
125-150 Guide to Subdivision 125-C
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Operative provisions
125-155 Certain capital gains or losses disregarded for demerging entity
125-160 No CGT event J1
125-165 Adjusted capital loss for value shift under a demerger
125-170 Reduced cost base reduction if demerger asset subject to roll-over
Subdivision 125-D—Corporate unit trusts and public trading trusts
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Guide to Subdivision 125-D
125-225 Guide to Subdivision 125-D
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Operative provisions
125-230 Application of Division to corporate unit trusts and public trading trusts
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Division 126—Same-asset roll-overs
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Guide to Division 126
126-1 What this Division is about
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Subdivision 126-A—Marriage breakdown
126-5 CGT event involving spouses
126-15 CGT event involving company or trustee
126-20 Subsequent CGT event happening to roll-over asset where transferor was a CFC or a non-resident trust
Subdivision 126-B—Companies in the same wholly-owned group
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Guide to Subdivision 126-B
126-40 What this Subdivision is about
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Operative provisions
126-45 Roll-over for members of wholly-owned group
126-50 Requirements for roll-over
126-55 When there is a roll-over
126-60 Consequences of roll-over
126-75 Originating company is a CFC
126-85 Effect of roll-over on certain liquidations
Subdivision 126-C—Changes to trust deeds
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Guide to Subdivision 126-C
126-125 What this Subdivision is about
126-130 Changes to trust deeds
126-135 Consequences of roll-over
Subdivision 126-D—Entitlement to shares after demutualisation and scrip for scrip roll-over
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Guide to Subdivision 126-D
126-185 What this Subdivision is about
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Operative provisions
126-190 When there is a roll-over
126-195 Consequences of roll-over
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Subdivision 126-D—Small superannuation funds
126-140 CGT event involving small superannuation funds
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Division 128—Effect of death
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Guide to Division 128
128-1 What this Division is about
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General rules
128-10 Capital gain or loss when you die is disregarded
128-15 Effect on the legal personal representative or beneficiary
128-20 When does an asset pass to a beneficiary?
128-25 The beneficiary is a trustee of a superannuation fund etc.
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Special rules for joint tenants
128-50 Joint tenants
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Division 130—Investments
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Guide to Division 130
130-1 What this Division is about
Subdivision 130-A—Bonus shares and units
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Guide to Subdivision 130-A
130-15 Acquisition time and cost base of bonus equities
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Operative provisions
130-20 Issue of bonus shares or units
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Subdivision 130-B—Rights
130-40 Exercise of rights
130-45 Timing rules
130-50 Application to options
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Subdivision 130-C—Convertible interests
130-60 Shares or units acquired by converting a convertible interest
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Subdivision 130-D—Employee share schemes
130-80 Share or right acquired under employee share scheme
130-83 Qualifying shares and qualifying rights
130-85 Share or right acquired under employee share scheme involving your associate
130-90 Share or right acquired under an employee share trust
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Subdivision 130-E—Exchangeable interests
130-100 Exchangeable interest
130-105 Shares acquired in exchange for the disposal or redemption of an exchangeable interest
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Division 132—Leases
132-1 Lessee incurs expenditure to get lease term varied or waived
132-5 Lessor pays lessee for improvements
132-10 Grant of a long-term lease
132-15 Lessee of land acquires reversionary interest of lessor
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Division 134—Options
134-1 Exercise of options
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Division 136—Non-residents
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Guide to Division 136
136-1 What this Division is about
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Subdivision 136-A—Making a capital gain or loss
136-5 What if you are a non-resident just before a CGT event
136-10 Making a capital gain or loss from most CGT events
136-15 Making a capital gain or loss from CGT events D1, E9 and K9
136-20 Those events you cannot make a capital gain or loss from
136-25 When an asset has the necessary connection with Australia
136-30 Reducing a capital gain or loss from a business asset
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Subdivision 136-B—Becoming a resident
136-40 Individual or company becomes resident
136-45 Trust becomes a resident trust
136-50 CFC becomes an Australian resident
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Division 149—When an asset stops being a pre-CGT asset
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Subdivision 149-A—Key concepts
149-10 What is a pre-CGT asset?
149-15 Majority underlying interests in a CGT asset
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Subdivision 149-B—When asset of non-public entity stops being a pre-CGT asset
149-25 Which entities are affected
149-30 Effects if asset no longer has same majority underlying ownership
149-35 Cost base elements of asset that stops being a pre-CGT asset
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Subdivision 149-C—When asset of public entity stops being a pre-CGT asset
149-50 Which entities are affected
149-55 Entity to give the Commissioner evidence periodically as to whether asset still has same majority underlying ownership
149-60 What the evidence must show
149-70 Effects if asset no longer has same majority underlying ownership
149-75 Cost base elements of asset that stops being a pre-CGT asset
149-80 No more evidence needed after asset stops being a pre-CGT asset
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Subdivision 149-F—How to treat a “demutualised” public entity
149-162 Subdivision applies only if entity gives sufficient evidence
149-165 Members treated as having underlying interests in assets until demutualisation
149-170 Effect of demutualisation of interposed company
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Division 152—Small business relief
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Guide to Division 152
152-1 What this Division is about
Subdivision 152-A—Basic conditions for relief under this Division
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Guide to Subdivision 152-A
152-5 What this Subdivision is about
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Basic conditions for relief
152-10 Basic conditions for relief
152-12 Special conditions for CGT event D1
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Maximum net asset value test
152-15 Maximum net asset value test
152-20 Meaning of net value of the CGT assets
152-25 Meaning of small business CGT affiliate
152-30 Meaning of connected with the entity
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Active asset test
152-35 Active asset test
152-40 Meaning of active asset
152-45 Continuing time periods for involuntary disposals
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Controlling individual test
152-50 Controlling individual test
152-55 Meaning of controlling individual
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CGT concession stakeholder
152-60 Meaning of CGT concession stakeholder
Subdivision 152-B—Small business 15-year exemption
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Guide to Subdivision 152-B
152-100 What this Subdivision is about
152-105 15-year exemption for individuals
152-110 15-year exemption for companies and trusts
152-115 Continuing time periods for involuntary disposals
152-120 Discretionary trusts need not have a controlling individual in a loss year
152-125 Payments to company’s or trust’s CGT concession stakeholders are exempt
Subdivision 152-C—Applying the small business concessions
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Guide to Subdivision 152-C
152-200 What this Subdivision is about
152-205 You get the small business 50% reduction
152-210 You may also get the small business retirement exemption and small business roll-over relief
152-215 15-year rule has priority
152-220 You may choose not to apply this Subdivision
Subdivision 152-D—Small business retirement exemption
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Guide to Subdivision 152-D
152-300 What this Subdivision is about
152-305 Choosing the exemption
152-310 Consequences of choice
152-315 Choosing the amount to disregard
152-320 Meaning of CGT retirement exemption limit
152-325 Company or trust conditions
Subdivision 152-E—Small business roll-over
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Guide to Subdivision 152-E
152-400 What this Subdivision is about
152-405 Basic principles for the small business roll-over
152-410 When you can obtain the roll-over
152-415 What the roll-over consists of
152-420 Replacement asset conditions
152-425 Rules where an individual who has obtained a roll-over dies
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Volume 5
Chapter 3—Specialist liability rules
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Part 3-5—Corporate taxpayers and corporate distributions
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Division 164—Non-share capital accounts for companies
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Guide to Division 164
164-1 What this Division is about
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Operative provisions
164-5 Object
164-10 Non-share capital account
164-15 Credits to non-share capital account
164-20 Debits to non-share capital account
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Division 165—Income tax consequences of changing ownership or control of a company
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Guide to Division 165
165-1 What this Division is about
Subdivision 165-A—Deducting tax losses of earlier income years
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Guide to Subdivision 165-A
165-5 What this Subdivision is about
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Operative provisions
165-10 To deduct a tax loss
165-12 Company must maintain the same owners
165-13 Alternatively, company must carry on same business
165-15 Same people must control the voting power, or company must carry on same business
165-20 When company can deduct part of a tax loss
Subdivision 165-B—Working out the taxable income and tax loss for the income year of the change
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Guide to Subdivision 165-B
165-23 What this Subdivision is about
165-25 Summary of this Subdivision
165-30 Flow chart showing the application of this Subdivision
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When a company must work out its taxable income and tax loss under this Subdivision
165-35 On a change of ownership, unless the company carries on the same business
165-37 Who has more than a 50% stake in the company during a period
165-40 On a change of control of voting power in the company, unless the company carries on the same business
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Working out the company’s taxable income
165-45 First, divide the income year into periods
165-50 Next, calculate the notional loss or notional taxable income for each period
165-55 How to attribute deductions to periods
165-60 How to attribute assessable income to periods
165-65 How to calculate the company’s taxable income for the income year
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Working out the company’s tax loss
165-70 How to calculate the company’s tax loss for the income year
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Special rules that apply if the company is in partnership
165-75 How to calculate the company’s notional loss or notional taxable income for a period when the company was a partner
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
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
165-90 Company’s full year deductions include a share of partnership’s full year deductions
Subdivision 165-CA—Applying net capital losses of earlier income years
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Guide to Subdivision 165-CA
165-93 What this Subdivision is about
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Operative provisions
165-96 When a company cannot apply a net capital loss
Subdivision 165-CB—Working out the net capital gain and the net capital loss for the income year of the change
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Guide to Subdivision 165-CB
165-99 What this Subdivision is about
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When a company must work out its net capital gain and net capital loss under this Subdivision
165-102 On a change of ownership, or of control of voting power, unless the company carries on the same business
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Working out the company’s net capital gain and net capital loss
165-105 First, divide the income year into periods
165-108 Next, calculate the notional net capital gain or notional net capital loss for each period
165-111 How to work out the company’s net capital gain
165-114 How to work out the company’s net capital loss
Subdivision 165-CC—Change of ownership or control of company that has an unrealised net loss
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Guide to Subdivision 165-CC
165-115 What this Subdivision is about
165-115AA Special rules to save compliance costs
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Operative provisions
165-115A Application of Subdivision
165-115B What happens when the company makes a capital loss or becomes entitled to a deduction in respect of a CGT asset after a changeover time
165-115BA What happens when a CGT event happens after a changeover time to a CGT asset of the company that is trading stock
165-115BB Order of application of assets: residual unrealised net loss
165-115C Changeover time—change in ownership of company
165-115D Changeover time—change in control of company
165-115E What is an unrealised net loss
165-115F Notional gains and losses
Subdivision 165-CD—Reductions after alterations in ownership or control of loss company
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Guide to Subdivision 165-CD
165-115GA What this Subdivision is about
165-115GB When adjustments must be made
165-115GC How adjustments are calculated
165-115H How this Subdivision applies
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Operative provisions
165-115J Object of Subdivision
165-115K Application and interpretation
165-115L Alteration time—alteration in ownership of company
165-115M Alteration time—alteration in control of company
165-115N Alteration time—declaration by liquidator
165-115P Notional alteration time—disposal of interests in company within 12 months before alteration time
165-115Q Notional alteration time—disposal of interests in company earlier than 12 months before alteration time
165-115R When company is a loss company at first or only alteration time in income year
165-115S When company is a loss company at second or later alteration time in income year
165-115T Reduction of certain amounts included in company’s overall loss at alteration time
165-115U Adjusted unrealised loss
165-115V Notional losses
165-115W Calculation of trading stock decrease
165-115X Relevant equity interest
165-115Y Relevant debt interest
165-115Z What constitutes a controlling stake in a company
165-115ZA Reductions and other consequences if entity has relevant equity interest or relevant debt interest in loss company immediately before alteration time
165-115ZB Adjustment amounts for the purposes of section 165-115ZA
165-115ZC Notices to be given
165-115ZD Adjustment (or further adjustment) for interest realised at a loss after global method has been used
Subdivision 165-C—Deducting bad debts
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Guide to Subdivision 165-C
165-117 What this Subdivision is about
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Operative provisions
165-119 Application of Subdivision
165-120 To deduct a bad debt
165-123 Company must maintain the same owners
165-126 Alternatively, company must carry on same business
165-129 Same people must control the voting power, or company must carry on same business
165-132 When tax losses resulting from bad debts cannot be deducted
Subdivision 165-D—Tests for finding out whether the company has maintained the same owners
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The primary and alternative tests
165-150 Who has more than 50% of the voting power in the company
165-155 Who has rights to more than 50% of the company’s dividends
165-160 Who has rights to more than 50% of the company’s capital distributions
165-165 Rules about tests for a condition or occurrence of a circumstance
165-175 Tests can be satisfied by a single person
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Rules affecting the operation of the tests
165-180 Arrangements affecting beneficial ownership of shares
165-185 Shares treated as not having carried rights
165-190 Shares treated as always having carried rights
165-195 Disregard redeemable shares
165-200 Rules do not affect totals of shares, units in unit trusts or rights carried by shares and units
165-205 Death of beneficial owner
165-207 Trustee of family trust treated as beneficial owner
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Subdivision 165-E—The same business test
165-210 The test
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Subdivision 165-F—Special provisions relating to ownership by non-fixed trusts
165-215 Special alternative to change of ownership test for Subdivision 165-A
165-220 Special alternative to change of ownership test for Subdivision 165-B
165-225 Special way of dividing the income year under Subdivision 165-B
165-230 Special alternative to change of ownership test for Subdivision 165-C
165-235 Information about non-fixed trusts with interests in company
165-240 Notices where requirements of section 165-235 are met
165-245 Meaning of expressions
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Division 166—Income tax consequences of changing ownership or control of a listed public company
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Guide to Division 166
166-1 What this Division is about
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Subdivision 166-A—Deducting tax losses of earlier income years
166-5 How Subdivision 165-A applies to a listed public company
166-10 How Subdivision 165-A applies to a 100% subsidiary of a listed public company
166-15 Companies can choose that this Subdivision is not to apply to them
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Subdivision 166-B—Working out the taxable income, tax loss, net capital gain and net capital loss for the income year of the change
166-20 How Subdivisions 165-B and 165-CB apply to a listed public company
166-25 How to work out the taxable income, tax loss, net capital gain and net capital loss
166-30 How Subdivisions 165-B and 165-CB apply to 100% subsidiary of a listed public company
166-35 Companies can choose that this Subdivision is not to apply to them
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Subdivision 166-C—Deducting bad debts
166-40 How Subdivision 165-C applies to a listed public company
166-45 How Subdivision 165-C applies to a 100% subsidiary of a listed public company
166-50 Companies can choose that this Subdivision is not to apply to them
Subdivision 166-CA—Change of ownership or control of listed public company
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Operative provisions
166-80 How Subdivision 165-CC or 165-CD applies to a listed public company
166-85 How Subdivision 165-CC or 165-CD applies to a 100% subsidiary of a listed public company
166-90 Companies can choose that this Subdivision is not to apply to them
Subdivision 166-D—Tests for finding out whether the listed public company has maintained the same owners
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Guide to Subdivision 166-D
166-140 What this Subdivision is about
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Substantial continuity of ownership
166-145 Substantial continuity of ownership
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The ownership tests
166-150 Who has more than 50% of the voting power in the listed public company at a particular time
166-155 Who has rights to more than 50% of the listed public company’s dividends at a particular time
166-160 Who has rights to more than 50% of the listed public company’s capital distributions at a particular time
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Rules affecting the operation of the ownership tests
166-165 Rules in Division 165 apply
166-170 Rules about substantial continuity of ownership of 100% subsidiary of listed public company
Subdivision 166-F—How to treat shareholdings of less than 1%
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Guide to Subdivision 166-F
166-215 What this Subdivision is about
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Special tracing rules for listed public companies
166-220 Shareholdings of less than 1% in the listed public company
166-225 Shareholdings of less than 1% in an interposed listed public company
166-230 Notional shareholder
166-235 Notional shareholder taken to have minimum voting control, dividend rights and capital rights
166-240 Voting, dividend and capital shareholding of less than 1%
166-245 Shares that are part of a substantial shareholding
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When the rules in this Subdivision do not apply
166-250 Limit on listed public company splitting its shares into different classes
166-255 If listed public company would not have otherwise passed the ownership tests
Subdivision 166-G—How to treat interposed superannuation funds, approved deposit funds and special companies
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Guide to this Subdivision
166-260 What this Subdivision is about
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Special tracing rules for listed public companies
166-265 When fund or special company is taken to control voting power
166-270 When fund or special company is taken to have rights to dividends and capital
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Division 170—Treatment of certain company groups for income tax purposes
Subdivision 170-A—Transfer of tax losses within certain wholly-owned groups of companies
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Guide to Subdivision 170-A
170-1 What this Subdivision is about
170-5 Basic principles for transferring tax losses
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Effect of transferring a tax loss
170-10 When a company can transfer a tax loss
170-15 Income company is taken to have incurred transferred loss
170-20 Who can deduct transferred loss
170-25 Tax treatment of consideration for transferred tax loss
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Conditions for transfer
170-30 Companies must be in existence and members of the same wholly-owned group etc.
170-32 Tax loss incurred by the loss company because of a transfer under Subdivision 707-A
170-33 Alternative test of relations between the loss company and other companies
170-35 The loss company
170-40 The income company
170-42 If the income company has become the head company of a consolidated group or MEC group
170-45 Maximum amount that can be transferred
170-50 Transfer by written agreement
170-55 Losses must be transferred in order they are incurred
170-60 Income company cannot transfer transferred tax loss
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Effect of agreement to transfer more than can be transferred
170-65 Agreement transfers as much as can be transferred
170-70 Amendment of assessments
Subdivision 170-B—Transfer of net capital losses within certain wholly-owned groups of companies
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Guide to Subdivision 170-B
170-101 What this Subdivision is about
170-105 Basic principles for transferring a net capital loss
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Effect of transferring a net capital loss
170-110 When a company can transfer a net capital loss
170-115 Who can apply transferred loss
170-120 Gain company is taken to have made transferred loss
170-125 Tax treatment of consideration for transferred tax loss
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Conditions for transfer
170-130 Companies must be in existence and members of the same wholly-owned group etc.
170-132 Net capital loss made by the loss company because of a transfer under Subdivision 707-A
170-133 Alternative test of relations between the loss company and other companies
170-135 The loss company
170-140 The gain company
170-142 If the gain company has become the head company of a consolidated group or MEC group
170-145 Maximum amount that can be transferred
170-150 Transfer by written agreement
170-155 Losses must be transferred in order they are made
170-160 Gain company cannot transfer transferred net capital loss
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Effect of agreement to transfer more than can be transferred
170-165 Agreement transfers as much as can be transferred
170-170 Amendment of assessments
Subdivision 170-C—Provisions applying to both transfers of tax losses and transfers of net capital losses within wholly-owned groups of companies
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Guide to Subdivision 170-C
170-201 What this Subdivision is about
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Operative provisions
170-205 Object of Subdivision
170-210 Transfer of tax loss: direct and indirect interests in the loss company
170-215 Transfer of tax loss: direct and indirect interests in the income company
170-220 Transfer of net capital loss: direct and indirect interests in the loss company
170-225 Transfer of net capital loss: direct and indirect interests in the gain company
Subdivision 170-D—Transactions by a company that is a member of a linked group
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Guide to Subdivision 170-D
170-250 What this Subdivision is about
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Operative provisions
170-255 Application of Subdivision
170-260 Linked group
170-265 Connected entity
170-270 Immediate consequences for originating company
170-275 Subsequent consequences for originating company
170-280 What happens if certain events happen in respect of the asset
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Division 175—Use of a company’s tax losses or deductions to avoid income tax
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Guide to Division 175
175-1 What this Division is about
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Subdivision 175-A—Tax benefits from unused tax losses
175-5 When Commissioner can disallow deduction for tax loss
175-10 First case: income or capital gain injected into company because of available tax loss
175-15 Second case: someone else obtains a tax benefit because of tax loss available to company
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Subdivision 175-B—Tax benefits from unused deductions
175-20 Income or capital gain injected into company because of available deductions
175-25 Deduction injected into company because of available income or capital gain
175-30 Someone else obtains a tax benefit because of a deduction, income or capital gain available to company
175-35 Tax loss resulting from disallowed deductions
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Subdivision 175-CA—Tax benefits from unused net capital losses of earlier income years
175-40 When Commissioner can disallow net capital loss of earlier income year
175-45 First case: capital gain injected into company because of available net capital loss
175-50 Second case: someone else obtains a tax benefit because of net capital loss available to company
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Subdivision 175-CB—Tax benefits from unused capital losses of the current year
175-55 When Commissioner can disallow capital loss of current year
175-60 Capital gain injected into company because of available capital loss
175-65 Capital loss injected into company because of available capital gain
175-70 Someone else obtains a tax benefit because of capital loss or gain available to company
175-75 Net capital loss resulting from disallowed capital losses
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Subdivision 175-C—Tax benefits from unused bad debt deductions
175-80 When Commissioner can disallow deduction for bad debt
175-85 First case: income or capital gain injected into company because of available bad debt
175-90 Second case: someone else obtains a tax benefit because of bad debt deduction available to company
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Subdivision 175-D—Shareholding interest in the company
175-95 When a person has a shareholding interest in the company
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Division 180—Information about family trusts with interests in companies
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Guide to Division 180
180-1 What this Division is about
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Subdivision 180-A—Information relevant to Division 165
180-5 Information about family trusts with interests in companies
180-10 Notice where requirements of section 180-5 are met
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Subdivision 180-B—Information relevant to Division 175
180-15 Information about family trusts with interests in companies
180-20 Notice where requirements of section 180-15 are met
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Division 195—Special types of company
Subdivision 195-A—Pooled development funds (PDFs)
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Guide to Subdivision 195-A
195-1 What this Subdivision is about
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Working out a PDF’s taxable income and tax loss
195-5 Deductibility of PDF tax losses
195-10 PDF cannot transfer tax loss
195-15 Tax loss for year in which company becomes a PDF
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Working out a PDF’s net capital gain and net capital loss
195-25 Applying a PDF’s net capital losses
195-30 PDF cannot transfer net capital loss
195-35 Net capital loss for year in which company becomes a PDF
Subdivision 195-B—Limited partnerships
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Guide to Subdivision 195-B
195-60 What this Subdivision is about
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Operative provisions
195-65 Tax losses cannot be transferred to a VCLP, an AFOF or a VCMP
195-70 Previous tax losses can be deducted after ceasing to be a VCLP, an AFOF or a VCMP
195-75 Determinations to take account of income years of less than 12 months
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Part 3-6—The imputation system
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Division 200—Guide to Part 3-6
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Guide to Division 200
200-1 What this Division is about
200-5 The imputation system
200-10 Franking a distribution
200-15 The franking account
200-20 How a distribution is franked
200-25 A corporate tax entity must not give its members credit for more tax than the entity has paid
200-30 Benchmark rule
200-35 Effect of receiving a franked distribution
200-40 An Australian corporate tax entity can pass the benefit of having received a franked distribution on to its members
200-45 Special rules for franking by some entities
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Division 201—Objects and application of Part 3-6
201-1 Objects
201-5 Application of this Part
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Division 202—Franking a distribution
Subdivision 202-A—Franking a distribution
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Guide to Subdivision 202-A
202-1 What this Subdivision is about
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Operative provisions
202-5 Franking a distribution
Subdivision 202-B—Who can frank a distribution?
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Guide to Subdivision 202-B
202-10 What this Subdivision is about
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Operative provisions
202-15 Franking entities
202-20 Residency requirement when making a distribution
Subdivision 202-C—Which distributions can be franked?
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Guide to Subdivision 202-C
202-25 What this Subdivision is about
202-30 Frankable distributions
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Operative provisions
202-35 Object
202-40 Frankable distributions
202-45 Unfrankable distributions
Subdivision 202-D—Amount of the franking credit on a distribution
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Guide to Subdivision 202-D
202-50 What this Subdivision is about
202-55 What is the maximum franking credit for a frankable distribution?
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Operative provisions
202-60 Amount of the franking credit on a distribution
202-65 Where the franking credit stated in the distribution statement exceeds the maximum franking credit for the distribution
Subdivision 202-E—Distribution statements
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Guide to Subdivision 202-E
202-70 What this Subdivision is about
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Operative provisions
202-75 Obligation to give a distribution statement
202-80 Distribution statement
202-85 Changing the franking credit on a distribution by amending the distribution statement
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Division 203—Benchmark rule
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Guide to Division 203
203-1 What this Division is about
203-5 Benchmark rule
203-10 Benchmark franking percentage
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Operative provisions
203-15 Object
203-20 Application of the benchmark rule
203-25 Benchmark rule
203-30 Setting a benchmark franking percentage
203-35 Franking percentage
203-40 Franking periods—where the entity is not a private company
203-45 Franking period—private companies
203-50 Consequences of breaching the benchmark rule
203-55 Commissioner’s powers to permit a departure from the benchmark rule
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Division 204—Anti-streaming rules
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Subdivision 204-A—Objects and application
204-1 Objects
204-5 Application
Subdivision 204-B—Linked distributions
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Guide to Subdivision 204-B
204-10 What this Subdivision is about
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Operative provisions
204-15 Linked distributions
Subdivision 204-C—Substituting tax-exempt bonus share for franked distributions
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Guide to Subdivision 204-C
204-20 What this Subdivision is about
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Operative provisions
204-25 Substituting tax-exempt bonus shares for franked distributions
Subdivision 204-D—Streaming distributions
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Guide to Subdivision 204-D
204-26 What this Subdivision is about
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Operative provisions
204-30 Streaming distributions
204-35 When does a franking debit arise if the Commissioner makes a determination under paragraph 204-30(3)(a)
204-40 Amount of the franking debit
204-41 Amount of the exempting debit
204-45 Effect of a determination under paragraph 204-30(3)(b)
204-50 Assessment and notice of determination
204-55 Right to review where a determination made
Subdivision 204-E—Disclosure requirements
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Guide to Subdivision 204-E
204-65 What this Subdivision is about
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Operative provisions
204-70 Application of this Subdivision
204-75 Notice to the Commissioner
204-80 Commissioner may require information where the Commissioner suspects streaming
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Division 205—Franking accounts, franking deficit tax liabilities and the related tax offset
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Guide to Division 205
205-1 What this Division is about
205-5 Franking accounts, franking deficit tax liabilities and the related tax offset
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Operative provisions
205-10 Each entity that is or has been a corporate tax entity has a franking account
205-15 Franking credits
205-20 Paying a PAYG instalment or income tax
205-25 Residency requirement for an event giving rise to a franking credit or franking debit
205-30 Franking debits
205-35 Refund of income tax
205-40 Franking surplus and deficit
205-45 Franking deficit tax
205-50 Deferring franking deficit
205-70 Tax offset arising from franking deficit tax liabilities
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Division 207—Effect of receiving a franked distribution
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Guide to Division 207
207-5 Overview
Subdivision 207-A—Effect of receiving a franked distribution generally
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Guide to Subdivision 207-A
207-10 What this Subdivision is about
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Operative provisions
207-15 Applying the general rule
207-20 General rule—gross-up and tax offset
Subdivision 207-B—Franked distribution received through certain partnerships and trustees
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Guide to Subdivision 207-B
207-25 What this Subdivision is about
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Gross-up and tax offset
207-30 Applying this Subdivision
207-35 Gross-up—distribution made to, or flows indirectly through, a partnership or trustee
207-45 Tax offset—distribution flows indirectly to an entity
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Key concepts
207-50 When a franked distribution flows indirectly to or through an entity
207-55 Share of a franked distribution
207-57 Share of the franking credit on a franked distribution
Subdivision 207-C—Residency requirements for the general rule
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Guide to Subdivision 207-C
207-60 What this Subdivision is about
207-65 Satisfying the residency requirement
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Operative provisions
207-70 Gross-up and tax offset under section 207-20
207-75 Residency requirement
Subdivision 207-D—No gross-up or tax offset where distribution would not be taxed
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Guide to Subdivision 207-D
207-80 What this Subdivision is about
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Operative provisions
207-85 Applying this Subdivision
207-90 Distribution that is made to an entity
207-95 Distribution that flows indirectly to an entity
Subdivision 207-E—Exceptions to the rules in Subdivision 207-D
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Guide to Subdivision 207-E
207-105 What this Subdivision is about
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Operative provisions
207-110 Exceptions to sections 207-90 and 207-95
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Exempt institutions
207-130 Which exempt institutions are eligible for a refund?
207-135 Residency requirement
Subdivision 207-F—No gross-up or tax offset where the imputation system has been manipulated
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Guide to Subdivision 207-F
207-140 What this Subdivision is about
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Operative provisions
207-145 Distribution that is made to an entity
207-150 Distribution that flows indirectly to an entity
207-155 When is a distribution made as part of a dividend stripping operation?
207-160 Distribution that is treated as an interest payment
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Division 208—Exempting entities and former exempting entities
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Guide to Division 208
208-5 What is an exempting entity?
208-10 Former exempting entities
208-15 Distributions by exempting entities and former exempting entities
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Subdivision 208-A—What are exempting entities and former exempting entities?
208-20 Exempting entities
208-25 Effective ownership of entity by prescribed persons
208-30 Accountable membership interests
208-35 Accountable partial interests
208-40 Prescribed persons
208-45 Persons who are taken to be prescribed persons
208-50 Former exempting companies
Subdivision 208-B—Franking with an exempting credit
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Guide to Subdivision 208-B
208-55 What this Subdivision is about
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Operative provisions
208-60 Franking with an exempting credit
Subdivision 208-C—Amount of the exempting credit on a distribution
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Guide to Subdivision 208-C
208-65 What this Subdivision is about
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Operative provisions
208-70 Amount of the exempting credit on a distribution
Subdivision 208-D—Distribution statements
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Guide to Subdivision 208-D
208-75 Guide to Subdivision 208-D
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Operative provisions
208-80 Additional information to be included by a former exempting entity or exempting entity
Subdivision 208-E—Distributions to be franked with exempting credits to the same extent
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Guide to Subdivision 208-E
208-85 What this Subdivision is about
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Operative provisions
208-90 All frankable distributions made within a franking period must be franked to the same extent with an exempting credit
208-95 Exempting percentage
208-100 Consequences of breaching the rule in section 208-90
Subdivision 208-F—Exempting accounts and franking accounts of exempting entities and former exempting entities
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Guide to Subdivision 208-F
208-105 What this Subdivision is about
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Operative provisions
208-110 Exempting account
208-115 Exempting credits
208-120 Exempting debits
208-125 Exempting surplus and deficit
208-130 Franking credits arising because of status as exempting entity or former exempting entity
208-135 Relationships that will give rise to a franking credit under item 5 of the table in section 208-130
208-140 Membership of the same effectively wholly-owned group
208-145 Franking debits arising because of status as exempting entity or former exempting entity
208-150 Residency requirement
208-155 Eligible continuing substantial member
208-160 Distributions that are affected by a manipulation of the imputation system
208-165 Amount of the exempting credit or franking credit arising because of a distribution franked with an exempting credit
208-170 Where a determination under paragraph 177EA(5)(b) of the Income Tax Assessment Act 1936 affects part of the distribution
208-175 When does a distribution franked with an exempting credit flow indirectly to an entity?
208-180 What is an entity’s share of the exempting credit on a distribution?
208-185 Minister may convert exempting surplus to franking credit of former exempting entity previously owned by the Commonwealth
Subdivision 208-G—Tax effects of distributions by exempting entities
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Guide to Subdivision 208-G
208-190 What this Subdivision is about
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Operative provisions
208-195 Division 207 does not generally apply
208-200 Distributions to exempting entities
208-205 Distributions to employees acquiring shares under an eligible employee share scheme
208-210 Subsidiaries
208-215 Eligible employee share scheme
Subdivision 208-H—Tax effect of a distribution franked with an exempting credit
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Guide to Subdivision 208-H
208-220 What this Subdivision is about
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Operative provisions
208-225 Division 207 does not generally apply
208-230 Distributions to exempting entities and former exempting entities
208-235 Distributions to employees acquiring shares under an eligible employee share scheme
208-240 Distributions to certain individuals
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Division 210—Venture capital franking
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Guide to Division 210
210-1 Purpose of venture capital franking
210-5 How is this achieved?
210-10 What is a venture capital credit?
210-15 What does the PDF have to do to distribute the credits?
210-20 Limits on venture capital franking
Subdivision 210-A—Franking a distribution with a venture capital credit
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Guide to Subdivision 210-A
210-25 What this Subdivision is about
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Operative provisions
210-30 Franking a distribution with a venture capital credit
Subdivision 210-B—Participating PDFs
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Guide to Subdivision 210-B
210-35 What this Subdivision is about
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Operative provisions
210-40 What is a participating PDF
Subdivision 210-C—Distributions that are frankable with a venture capital credit
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Guide to Subdivision 210-C
210-45 What this Subdivision is about
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Operative provisions
210-50 Which distributions can be franked with a venture capital credit?
Subdivision 210-D—Amount of the venture capital credit on a distribution
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Guide to Subdivision 210-D
210-55 What this Subdivision is about
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Operative provisions
210-60 Amount of the venture capital credit on a distribution
Subdivision 210-E—Distribution statements
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Guide to Subdivision 210-E
210-65 What this Subdivision is about
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Operative provisions
210-70 Additional information to be included when a distribution is franked with a venture capital credit
Subdivision 210-F—Rules affecting the allocation of venture capital credits
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Guide to Subdivision 210-F
210-75 What this Subdivision is about
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Operative provisions
210-80 Draining the venture capital surplus when a distribution frankable with venture capital credits is made
210-81 Distributions to be franked with venture capital credits to the same extent
210-82 Consequences of breaching the rule in section 210-81
Subdivision 210-G—Venture capital sub-account
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Guide to Subdivision 210-G
210-85 What this Subdivision is about
210-90 The venture capital sub-account
210-95 Venture capital deficit tax
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Operative provisions
210-100 Venture capital sub-account
210-105 Venture capital credits
210-110 Determining the extent to which a franking credit is reasonably attributable to a particular payment of tax
210-115 Participating PDF may elect to have venture capital credits arise on its assessment day
210-120 Venture capital debits
210-125 Venture capital debit where CGT limit is exceeded
210-130 Venture capital surplus and deficit
210-135 Venture capital deficit tax
210-140 Effect of a liability to pay venture capital deficit tax on franking deficit tax
210-145 Effect of a liability to pay venture capital deficit tax on the franking account
210-150 Deferring venture capital deficit
Subdivision 210-H—Effect of receiving a distribution franked with a venture capital credit
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Guide to Subdivision 210-H
210-155 What this Subdivision is about
210-160 The significance of a venture capital credit
210-165 Recipients for whom the venture capital credit is not significant
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Operative provisions
210-170 Tax offset for certain recipients of distributions franked with venture capital credits
210-175 Amount of the tax offset
210-180 Application of Division 207 where the recipient is entitled to a tax offset under section 210-170
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Division 214—Administering the imputation system
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Guide to Division 214
214-1 Purpose of the system
214-5 Key features
Subdivision 214-A—Franking returns
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Guide to Subdivision 214-A
214-10 What this Subdivision is about
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Operative provisions
214-15 Notice to give a franking return—general notice
214-20 Notice to a specific corporate tax entity
214-25 Content and form of a franking return
214-30 Franking account balance
214-35 Venture capital sub-account balance
214-40 Meaning of franking tax
214-45 Effect of a refund on franking returns
214-50 Evidence
Subdivision 214-B—Franking assessments
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Guide to Subdivision 214-B
214-55 What this Subdivision is about
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Operative provisions
214-60 Commissioner may make a franking assessment
214-65 Commissioner taken to have made a franking assessment on first return
214-70 Part-year assessment
214-75 Validity of assessment
214-80 Objections
214-85 Evidence
Subdivision 214-C—Amending franking assessments
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Guide to Subdivision 214-C
214-90 What this Subdivision is about
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Operative provisions
214-95 Amendments within 3 years of the original assessment
214-100 Amended assessments are treated as franking assessments
214-105 Further return as a result of a refund affecting a franking deficit tax liability
214-110 Later amendments—on request
214-115 Later amendments—failure to make proper disclosure
214-120 Later amendments—fraud or evasion
214-125 Further amendment of an amended particular
214-130 Other later amendments
214-135 Amendment on review etc.
214-140 Notice of amendments
Subdivision 214-D—Collection and recovery
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Guide to Subdivision 214-D
214-145 What this Subdivision is about
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Operative provisions
214-150 Due date for payment of franking tax
214-155 General interest charge
214-160 Refunds of amounts overpaid
214-165 Security for payment of tax
Subdivision 214-E—Records, information and tax agents
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Guide to Subdivision 214-E
214-170 What this Subdivision is about
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Operative provisions
214-175 Record keeping
214-180 Power of Commissioner to obtain information
214-185 Tax agents
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Division 215—Consequences of the debt/equity rules
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Subdivision 215-A—Application of the imputation system to non-share equity interests
215-1 Application of the imputation system to non-share equity interests
Subdivision 215-B—Non-share dividends that are unfrankable to some extent
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Guide to Subdivision 215-B
215-5 What this Subdivision is about
215-10 Certain non-share dividends by ADIs unfrankable
215-15 Non-share dividends are unfrankable if profits are unavailable
215-20 Working out the available frankable profits
215-25 Anticipating available frankable profits
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Division 216—Cum dividend sales and securities lending arrangements
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Subdivision 216-A—Circumstances where a distribution to a member of a corporate tax entity is treated as having been made to someone else
216-1 When a distribution made to a member of a corporate tax entity is treated as having been made to someone else
216-5 First situation (cum dividend sales)
216-10 Second situation (securities lending arrangements)
216-15 Distribution closing time
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Subdivision 216-B—Statements to be made where there is a cum dividend sale or securities lending arrangement
216-20 Cum dividend sale—statement by securities dealer
216-25 Cum dividend sale—statement by party
216-30 Securities lending arrangements—statement by borrower
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Division 219—Imputation for life insurance companies
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Guide to Division 219
219-1 What this Division is about
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Subdivision 219-A—Application of imputation rules to life insurance companies
219-10 Application of imputation rules to life insurance companies
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Subdivision 219-B—Franking accounts of life insurance companies
219-15 Franking credits
219-30 Franking debits
219-40 Residency requirement
219-45 Assessment day
219-50 Amount attributable to shareholders’ share of income tax liability
219-55 Adjustment resulting from an amended assessment
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Division 220—Imputation for NZ resident companies and related companies
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Guide to Division 220
220-1 What this Division is about
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Subdivision 220-A—Objects of this Division
220-15 Objects
220-20 What is an NZ resident?
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Subdivision 220-B—NZ company treated as Australian resident for imputation system if company chooses
220-25 Application of provisions of Part 3-6 outside this Division
220-30 What is an NZ franking company?
220-35 Making an NZ franking choice
220-40 When is an NZ franking choice in force?
220-45 Revoking an NZ franking choice
220-50 Cancelling an NZ franking choice
Subdivision 220-C—Modifications of other Divisions of this Part
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Franking NZ franking companies’ distributions
220-100 Residency requirement for franking
220-105 Unfrankable distributions by NZ franking companies
220-110 Maximum franking credit under section 202-60
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NZ franking companies’ franking accounts etc.
220-205 Franking credit for payment of NZ franking company’s withholding tax liability
220-210 Effect of franked distribution to NZ franking company or flowing indirectly to NZ franking company
220-215 Effect on franking account if NZ franking choice ceases to be in force
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Franking accounts of NZ franking company and some of its 100% subsidiaries
220-300 NZ franking company’s franking account affected by franking accounts of some of its 100% subsidiaries
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Effects of supplementary dividend from NZ franking company
220-400 Gross-up and tax offset for distribution from NZ franking company reduced by supplementary dividend
220-405 Franked distribution and supplementary dividend flowing indirectly
220-410 Franking credit reduced if tax offset reduced
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Rules about exempting entities
220-500 Publicly listed post-choice NZ franking company and its 100% subsidiaries are not exempting entities
220-505 Post-choice NZ franking company is not automatically prescribed person
220-510 Parent company’s status as prescribed person sets status of all other members of same wholly-owned group
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NZ franking companies’ exempting accounts
220-605 Effect on exempting account if NZ franking choice ceases to be in force
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Tax effect of distribution franked by NZ franking company with an exempting credit
220-700 Tax effect of distribution franked by NZ franking company with an exempting credit
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Joint and several liability for NZ resident company’s unmet franking liabilities
220-800 Joint and several liability for NZ resident company’s franking tax etc.
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Division 218—Application of imputation rules to co-operative companies
218-5 Application of imputation rules to co-operative companies
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Volume 6
Chapter 3—Specialist liability rules
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Part 3-10—Financial transactions
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Division 240—Arrangements treated as a sale and loan
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Guide to Division 240
240-1 What this Division is about
240-3 How the recharacterisation affects the notional seller
240-7 How the recharacterisation affects the notional buyer
Subdivision 240-A—Application and scope of Division
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Operative provisions
240-10 Application of this Division
240-15 Scope of Division
Subdivision 240-B—The notional sale and notional loan
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Operative provisions
240-17 Who is the notional seller and the notional buyer?
240-20 Notional sale of property by notional seller and notional acquisition of property by notional buyer
240-25 Notional loan by notional seller to notional buyer
Subdivision 240-C—Amounts to be included in notional seller’s assessable income
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Guide to Subdivision 240-C
240-30 What this Subdivision is about
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Operative provisions
240-35 Amounts to be included in notional seller’s assessable income
240-40 Arrangement payments not to be included in notional seller’s assessable income
Subdivision 240-D—Deductions allowable to notional buyer
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Guide to Subdivision 240-D
240-45 What this Subdivision is about
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Operative provisions
240-50 Extent to which deductions are allowable to notional buyer
240-55 Arrangement payments not to be allowable deductions
Subdivision 240-E—Notional interest and arrangement payments
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Operative provisions
240-60 Notional interest
240-65 Arrangement payments
240-70 Arrangement payment periods
Subdivision 240-F—The end of the arrangement
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Operative provisions
240-75 When is the end of the arrangement?
240-78 Termination amounts
240-80 What happens if the arrangement is extended or renewed
240-85 What happens if an amount is paid by or on behalf of the notional buyer to acquire the property
240-90 What happens if the notional buyer ceases to have the right to use the property
Subdivision 240-G—Adjustments if total amount assessed to notional seller differs from amount of finance charge
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Guide to Subdivision 240-G
240-100 What this Subdivision is about
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Operative provisions
240-105 Adjustments for notional seller
240-110 Adjustments for notional buyer
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Subdivision H—Application of Division 16E to certain arrangements
240-112 Division 16E applies to certain arrangements
Subdivision 240-I—Provisions applying to hire purchase agreements
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Operative provisions
240-115 Another person, or no person taken to own property in certain cases
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Division 243—Limited recourse debt
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Guide to Division 243
243-10 What this Division is about
Subdivision 243-A—Circumstances in which Division operates
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Operative provisions
243-15 When does this Division apply?
243-20 What is limited recourse debt?
243-25 When is a debt arrangement terminated?
243-30 What is the financed property and the debt property?
Subdivision 243-B—Working out the excessive deductions
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Operative provisions
243-35 Working out the excessive deductions
Subdivision 243-C—Amounts included in assessable income and deductions
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Operative provisions
243-40 Amount included in debtor’s assessable income
243-45 Deduction for later payments in respect of debt
243-50 Deduction for payments for replacement debt
243-55 Effect of Division on later capital allowance deductions
243-57 Effect of Division on later capital allowance balancing adjustments
243-58 Adjustment where debt only partially used for expenditure
Subdivision 243-D—Special provisions
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Operative provisions
243-60 Application of Division to partnerships
243-65 Application where partner reduces liability
243-70 Application of Division to companies ceasing to be 100% subsidiary
243-75 Application of Division where debt forgiveness rules also apply
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Part 3-35—Insurance business
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Division 320—Life insurance companies
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Guide to Division 320
320-1 What this Division is about
Operative provisions
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Subdivision 320-A—Preliminary
320-5 Object of Division
Subdivision 320-B—What is included in a life insurance company’s assessable income
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Guide to Subdivision 320-B
320-10 What this Subdivision is about
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Operative provisions
320-15 Assessable income—various amounts
320-30 Assessable income—special provision for certain income years
320-35 Exempt income
320-37 Non-assessable non-exempt income
320-40 Exemption of one-third of certain management fees received under contracts made before 1 July 2000 [see Note 6]
320-45 Tax treatment of gains or losses from CGT events in relation to virtual PST assets
Subdivision 320-C—Deductions and capital losses
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Guide to Subdivision 320-C
320-50 What this Subdivision is about
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Operative provisions
320-55 Deduction for life insurance premiums where liabilities under life insurance policies are to be discharged from virtual PST assets
320-60 Deduction for life insurance premiums where liabilities under life insurance policies are to be discharged from segregated exempt assets
320-65 Deduction for life insurance premiums in respect of life insurance policies that provide for participating or discretionary benefits
320-70 No deduction for life insurance premiums in respect of certain life insurance policies payable only on death or disability
320-75 Deduction for ordinary investment policies
320-80 Deduction for certain claims paid under life insurance policies
320-85 Deduction for increase in value of liabilities under net risk components of life insurance policies
320-87 Deduction for assets transferred from or to virtual PST
320-100 Deduction for life insurance premiums paid under certain contracts of reinsurance
320-105 Deduction for assets transferred to segregated exempt assets
320-110 Deduction for interest credited to income bonds
320-111 Deduction for funeral policy payout
320-112 Deduction for scholarship plan payout
320-115 No deduction for amounts credited to RSAs
320-120 Capital losses from assets other than virtual PST assets or segregated exempt assets
320-125 Capital losses from virtual PST assets
Subdivision 320-D—Income tax, taxable income and tax loss of life insurance companies
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Guide to Subdivision 320-D
320-130 What this Subdivision is about
320-131 Overview of Subdivision
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General rules
320-133 Object of Subdivision
320-134 Income tax of a life insurance company
320-135 Taxable income and tax loss of each of the 2 classes
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Taxable income and tax loss of life insurance companies
320-137 Taxable income—complying superannuation class
320-139 Taxable income—ordinary class
320-141 Tax loss—complying superannuation class
320-143 Tax loss—ordinary class
320-149 Provisions that apply only in relation to the ordinary class
Subdivision 320-F—Virtual PST
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Guide to Subdivision 320-F
320-165 What this Subdivision is about
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Operative provisions
320-170 Establishment of virtual PST
320-175 Valuations of virtual PST assets and virtual PST liabilities for each valuation time
320-180 Consequences of a valuation under section 320-175
320-185 Transfer of assets to virtual PST otherwise than as a result of a valuation under section 320-175
320-190 Virtual PST liabilities
320-195 Transfer of assets and payment of amounts from a virtual PST otherwise than as a result of a valuation under section 320-175
320-200 Consequences of transfer of assets to or from virtual PST
Subdivision 320-H—Segregation of assets to discharge exempt life insurance policy liabilities
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Guide to Subdivision 320-H
320-220 What this Subdivision is about
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Operative provisions
320-225 Segregation of assets for purpose of discharging exempt life insurance policy liabilities
320-230 Valuations of segregated exempt assets and exempt life insurance policy liabilities for each valuation time
320-235 Consequences of a valuation under section 320-230
320-240 Transfer of assets to segregated exempt assets otherwise than as a result of a valuation under section 320-230
320-245 Exempt life insurance policy liabilities
320-246 Exempt life insurance policy
320-247 Policy split into an exempt life insurance policy and another life insurance policy
320-250 Transfer of assets and payment of amounts from segregated exempt assets otherwise than as a result of a valuation under section 320-230
320-255 Consequences of transfer of assets to or from segregated exempt assets
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Division 322—HIH rescue package
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Guide to Division 322
322-1 What this Division is about
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Operative provisions
322-5 Rescue payments treated as insurance payments by HIH
322-10 HIH Trust exempt from tax
322-15 Certain capital gains and capital losses disregarded
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Part 3-45—Rules for particular industries and occupations
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Division 328—STS taxpayers
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Subdivision 328-A—Guide to Division 328
328-5 What this Division is about
328-10 Map of this Division
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Subdivision 328-B—Objects of this Division
328-50 Objects of this Division
Subdivision 328-C—Accounting method for STS taxpayers
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Guide to Subdivision 328-C
328-100 What this Subdivision is about
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Operative provisions
328-105 STS accounting method
328-110 When you start being an STS taxpayer
328-115 When you stop being an STS taxpayer
Subdivision 328-D—Capital allowances for STS taxpayers
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Guide to Subdivision 328-D
328-170 What this Subdivision is about
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Operative provisions
328-175 Calculations for depreciating assets
328-180 Low cost assets
328-185 Pooling
328-190 Calculation
328-195 Opening pool balance
328-200 Closing pool balance
328-205 Estimate of taxable use
328-210 Low pool value
328-215 Disposal etc. of depreciating assets
328-220 What happens when you stop being an STS taxpayer
328-225 Change in business use
328-230 Estimate where deduction denied
328-235 Interaction with Divisions 85 and 86
328-240 Roll-over relief for partnership changes
328-243 Conditions for roll-over relief
328-245 Consequences of roll-over
328-247 Pool deductions
328-250 Deductions for assets first used in BAE year
328-253 Deductions for cost addition amounts
328-255 Closing pool balance etc. below zero
328-257 Taxable use
Subdivision 328-E—Trading stock for STS taxpayers
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Guide to Subdivision 328-E
328-280 What this Subdivision is about
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Operative provisions
328-285 Trading stock for STS taxpayers
328-290 Adjustments in certain cases
328-295 Value of trading stock on hand
Subdivision 328-F—Entities eligible to be STS taxpayers
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Guide to Subdivision 328-F
328-360 What this Subdivision is about
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Operative provisions
328-365 Eligibility to be an STS taxpayer
328-370 Meaning of STS average turnover
328-375 Meaning of STS group turnover
328-380 Grouped entities
Subdivision 328-G—Entering and leaving the STS
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Guide to Subdivision 328-G
328-430 What this Subdivision is about
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Operative provisions
328-435 Entering the STS
328-440 Leaving the STS
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Division 375—Australian films
Subdivision 375-G—Film losses
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Guide to Subdivision 375-G
375-800 What this Subdivision is about
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Operative provisions
375-805 Does your tax loss have a film component?
375-810 What is a film loss?
375-815 Deductibility of film losses
375-820 Order in which tax losses are to be deducted
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Subdivision 375-H—Deductions for shares in a film licensed investment company
375-850 What this Subdivision is about
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Provisions affecting you if you own shares in a film licensed investment company
375-855 What can you deduct?
375-860 When can you claim the deduction?
375-865 How can you lose your entitlement?
375-870 How this Subdivision applies to partners and partnerships
375-872 Distribution of FLIC concessional capital is instead taken to be a dividend
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Provisions affecting film licensed investment companies
375-875 Tax losses cannot be transferred to or from FLICs
375-880 FLIC cannot claim deductions for concessional capital
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Division 376—Films generally (tax offset for Australian production expenditure)
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Subdivision 376-A—Guide to Division 376
376-2 Structure of this Division
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Subdivision 376-B—Tax offset for Australian expenditure in making a film
376-5 Film production company entitled to refundable tax offset
376-10 Amount of the tax offset
376-15 Minister may issue certificate for a film
376-20 Company may nominate one person whose remuneration is to be disregarded
Subdivision 376-C—Production expenditure and qualifying Australian production expenditure
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Production expenditure
376-25 Production expenditure—general test
376-30 Production expenditure—special qualifying Australian production expenditure
376-35 Production expenditure—specific exclusions
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Qualifying Australian production expenditure
376-40 Qualifying Australian production expenditure—general test
376-45 Qualifying Australian production expenditure—specific inclusions
376-50 Qualifying Australian production expenditure—specific exclusions
376-55 Qualifying Australian production expenditure—treatment of services embodied in goods
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Expenditure generally
376-65 Expenditure to be worked out on an arm’s length basis
376-70 Expenditure incurred by prior production companies
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Subdivision 376-D—Certificates for films
376-75 Production company may apply for certificate
376-80 Refusal to issue certificate
376-85 Issue of certificate
376-90 Revocation of certificate
376-95 Notice of decision
376-100 Review of decisions by the Administrative Appeals Tribunal
376-105 Minister may make rules
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Subdivision 376-E—Review of operation of this Division
376-110 Review of operation of this Division
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Division 385—Primary production
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Guide to Division 385
385-1 What this Division is about
385-5 Where to find some other rules relevant to primary producers
Subdivision 385-E—Primary producer can elect to spread or defer tax on profit from forced disposal or death of live stock
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Guide to Subdivision 385-E
385-90 What this Subdivision is about
385-95 Basic principles for elections under this Subdivision
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Operative provisions
385-100 Cases where you can make an election
385-105 Election to spread tax profit over 5 years
385-110 Alternative election to defer tax profit and reduce cost of replacement live stock
385-115 Your assessable income includes an amount for replacement live stock you breed
385-120 Purchase price of replacement live stock is reduced
385-125 Alternative election because of bovine tuberculosis has effect over 10 years not 5
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Subdivision 385-F—Insurance for loss of live stock or trees
385-130 Insurance for loss of live stock or trees
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Subdivision 385-G—Double wool clips
385-135 Election to defer including profit on second wool clip
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Subdivision 385-H—Rules that apply to all elections made under Subdivisions 385-E, 385-F and 385-G
385-145 Partnerships and trusts
385-150 Time for making election
385-155 Amounts are assessable income from carrying on the primary production business
385-160 Effect of certain events on election
385-163 Disentitling events
385-165 New partnership can elect to be treated as same entity as old partnership
385-170 New partnership can elect to take advantage of election made by former owner of the business
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Division 392—Long-term averaging of primary producers’ tax liability
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Guide to Division 392
392-1 What this Division is about
392-5 Overview of averaging process
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Subdivision 392-A—Is your income tax affected by averaging?
392-10 Individuals who carry on a primary production business
392-15 Meaning of basic taxable income
392-20 Trust beneficiaries taken to be carrying on primary production business
392-25 Choosing not to have your income tax averaged
Subdivision 392-B—What kind of averaging adjustment must you make?
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Guide to Subdivision 392-B
392-30 What this Subdivision is about
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Tax offset or extra income tax
392-35 Will you get a tax offset or have to pay extra income tax?
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How to work out the comparison rate
392-40 Identify income years for averaging your basic taxable income
392-45 Work out your average income for those years
392-50 Work out the income tax on your average income at basic rates
392-55 Work out the comparison rate
Subdivision 392-C—How big is your averaging adjustment?
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Guide to Subdivision 392-C
392-60 What this Subdivision is about
392-65 What your averaging adjustment reflects
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Your gross averaging amount
392-70 Working out your gross averaging amount
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Your averaging adjustment
392-75 Working out your averaging adjustment
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How to work out your averaging component
392-80 Work out your taxable primary production income
392-85 Work out your taxable non-primary production income
392-90 Work out your averaging component
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Subdivision 392-D—Effect of permanent reduction of your basic taxable income
392-95 You are treated as if you had not carried on business before
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Division 396—Land transport facilities borrowings
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Guide to Division 396
396-5 What this Division is about
Subdivision 396-A—Key operative provisions
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Guide to Subdivision 396-A
396-10 What this Subdivision is about
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Operative provisions
396-15 Tax offset for LTF interest on land transport facilities borrowings
396-20 Maximum cost to Commonwealth
396-25 Borrower cannot deduct LTF interest for which lender has tax offset
Subdivision 396-B—What LTF interest is covered?
Guide to Subdivision 396-B
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Operative provisions
396-30 What is LTF interest?
396-35 Interest covered by land transport facilities borrowings agreement
396-40 Interest ceasing to be covered by a land transport facilities borrowings agreement
Subdivision 396-C—Projects, borrowers and lenders
Guide to Subdivision 396-C
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Operative provisions
396-45 What projects can be approved?
396-50 Who can be approved as a borrower?
396-55 Who can be a lender?
Subdivision 396-D—Application, approval and agreement process
Guide to Subdivision 396-D
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Operative provisions
396-60 Applications
396-65 Minister or Commissioner may seek more information
396-70 Minister for Transport and Regional Development to consider applications
396-75 Selection criteria
396-80 Land transport facilities borrowings agreements
396-85 Conditions to be in all agreements
396-90 Variation of agreements
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Subdivision 396-E—Miscellaneous
396-95 Provision of information
396-100 Publication of information about approvals and agreements
396-105 Delegation by Minister for Transport and Regional Development
396-110 Decision by Minister for Transport and Regional Development not reviewable by AAT
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Division 405—Above-average special professional income of authors, inventors, performing artists, production associates and sportspersons
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Guide to Division 405
405-1 What this Division is about
405-5 Special rate of income tax on your above-average special professional income
405-10 Overview of the Division
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Subdivision 405-A—Above-average special professional income
405-15 When do you have above-average special professional income?
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Subdivision 405-B—Assessable professional income
405-20 What you count as assessable professional income
405-25 Meaning of special professional, performing artist, production associate, sportsperson and sporting competition
405-30 What you cannot count as assessable professional income
405-35 Limits on counting amounts as assessable professional income
405-40 Joint author or inventor treated as sole author or inventor
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Subdivision 405-C—Taxable professional income and average taxable professional income
405-45 Working out your taxable professional income
405-50 Working out your average taxable professional income
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Volume 7
Chapter 3—Specialist liability rules
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Part 3-90—Consolidated groups
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Division 700—Guide and objects
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Guide
700-1 What this Part is about
700-5 Overview of this Part
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Objects
700-10 Objects of this Part
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Division 701—Core rules
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Common rule
701-1 Single entity rule
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Head company rules
701-5 Entry history rule
701-10 Cost to head company of assets of joining entity
701-15 Cost to head company of membership interests in entity that leaves group
701-20 Cost to head company of assets consisting of certain liabilities owed by entity that leaves group
701-25 Tax-neutral consequence for head company of ceasing to hold assets when entity leaves group
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Entity rules
701-30 Where entity not subsidiary member for whole of income year
701-35 Tax-neutral consequence for entity of ceasing to hold assets when it joins group
701-40 Exit history rule
701-45 Cost of assets consisting of liabilities owed to entity by members of the group
701-50 Cost of certain membership interests of which entity becomes holder on leaving group
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Supporting provisions
701-55 Setting the tax cost of an asset
701-58 Effect of setting the tax cost of an asset that the head company does not hold under the single entity rule
701-60 Tax cost setting amount
701-65 Net income and losses for trusts and partnerships
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Exceptions
701-70 Adjustments to taxable income where identities of parties to arrangement merge on joining group
701-75 Adjustments to taxable income where identities of parties to arrangement re-emerge on leaving group
701-80 Accelerated depreciation
701-85 Other exceptions etc. to the rules
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Division 703—Consolidated groups and their members
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Guide to Division 703
703-1 What this Division is about
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Basic concepts
703-5 What is a consolidated group?
703-10 What is a consolidatable group?
703-15 Members of a consolidated group or consolidatable group
703-20 Certain entities that cannot be members of a consolidated group or consolidatable group
703-25 Australian residence requirements for trusts
703-30 When is one entity a wholly-owned subsidiary of another?
703-33 Transfer time for sale of shares in company
703-35 Treating entities as wholly-owned subsidiaries by disregarding employee shares
703-40 Treating entities held through non-fixed trusts as wholly-owned subsidiaries
703-45 Subsidiary members or nominees interposed between the head company and a subsidiary member of a consolidated group or a consolidatable group
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Choice to consolidate a consolidatable group
703-50 Choice to consolidate a consolidatable group
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Consolidated group created when MEC group ceases to exist
703-55 Creating consolidated groups from certain MEC groups
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Notice of events affecting consolidated group
703-60 Notice of events affecting consolidated group
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Effects of choice to continue group after shelf company becomes new head company
703-65 Application
703-70 Consolidated group continues in existence with interposed company as head company and original company as a subsidiary member
703-75 Interposed company treated as substituted for original company at all times before the completion time
703-80 Effects on the original company’s tax position
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Division 705—Tax cost setting amount for assets where entities become subsidiary members of consolidated groups
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Guide to Division 705
705-1 What this Division is about
Subdivision 705-A—Basic case: a single entity joining an existing consolidated group
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Guide to Subdivision 705-A
705-5 What this Subdivision is about
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Application and object
705-10 Application and object of this Subdivision
705-15 Cases where this Subdivision does not have effect
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Tax cost setting amount for assets that joining entity brings into joined group
705-20 Tax cost setting amount worked out under this Subdivision
705-25 Tax cost setting amount for retained cost base assets
705-30 What is the joining entity’s terminating value for an asset?
705-35 Tax cost setting amount for reset cost base assets [see Note 5]
705-40 Tax cost setting amount for reset cost base assets held on revenue account
705-45 Reduction in tax cost setting amount for accelerated depreciation assets
705-47 Reduction in tax cost setting amount for some privatised assets
705-50 Reduction in tax cost setting amount for over-depreciated assets
705-55 Order of application of sections 705-40, 705-45, 705-47 and 705-50
705-57 Adjustment to tax cost setting amount where loss of pre-CGT status of membership interests in joining entity
705-58 Assets and liabilities not set off against each other
705-59 Exception: treatment of linked assets and liabilities
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How to work out the allocable cost amount
705-60 What is the joined group’s allocable cost amount for the joining entity?
705-65 Cost of membership interests in the joining entity—step 1 in working out allocable cost amount
705-70 Liabilities of the joining entity—step 2 in working out allocable cost amount
705-75 Liabilities of the joining entity—reductions for purposes of step 2 in working out allocable cost amount
705-80 Liabilities of the joining entity—reductions/increases for purposes of step 2 in working out allocable cost amount
705-85 Liabilities of the joining entity—increases for purposes of step 2 in working out allocable cost amount
705-90 Undistributed, taxed profits accruing to joined group before joining time—step 3 in working out allocable cost amount
705-93 If pre-joining time roll-over from foreign resident company—step 3A in working out allocable cost amount
705-95 Pre-joining time distributions out of certain profits—step 4 in working out allocable cost amount
705-100 Losses accruing to joined group before joining time—step 5 in working out allocable cost amount
705-105 Continuity of holding membership interests—steps 3 to 5 in working out allocable cost amount
705-110 If joining entity transfers a loss to the head company—step 6 in working out allocable cost amount
705-115 If head company becomes entitled to certain deductions—step 7 in working out allocable cost amount
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How to work out a pre-CGT factor for assets of joining entity
705-125 Pre-CGT factor for assets of joining entity
Subdivision 705-B—Case of group formation
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Guide to Subdivision 705-B
705-130 What this Subdivision is about
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Application and object
705-135 Application and object of this Subdivision
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Modified application of Subdivision 705-A
705-140 Subdivision 705-A has effect with modifications
705-145 Order in which tax cost setting amounts are to be worked out where subsidiary members have membership interests in other subsidiary members
705-147 Adjustment in working out step 3A of allocable cost amount to take account of membership interests held by subsidiary members in other such members
705-150 Adjustment to result of step 3A in working out allocable cost amount where pre-formation time roll-over from head company to member of wholly-owned group
705-155 Adjustments to restrict step 4 reduction of allocable cost amount to effective distributions to head company in respect of direct membership interests
705-160 Adjustment to allocation of allocable cost amount to take account of owned profits or losses of certain entities that become subsidiary members
705-163 Modified application of section 705-57
705-165 Working out pre-CGT factors where subsidiary members have membership interests in other subsidiary members
Subdivision 705-C—Case where a consolidated group is acquired by another
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Guide to Subdivision 705-C
705-170 What this Subdivision is about
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Application and object
705-175 Application and object of this Subdivision
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Modified application of Division 701 in relation to acquired group etc.
705-180 Modifications of Division 701
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Modified application of Subdivision 705-A in relation to acquiring group
705-185 Subdivision 705-A has effect with modifications
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Modifications of Subdivision 705-A for the purposes of this Subdivision
705-190 Modified application of section 705-50
705-195 Modified application of subsection 705-65(6)
705-200 Modified application of section 705-85
705-205 Modified application of section 705-125
Subdivision 705-D—Where multiple entities are linked by membership interests
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Guide to Subdivision 705-D
705-210 What this Subdivision is about
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Application and object
705-215 Application and object of this Subdivision
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Modified application of Subdivision 705-A
705-220 Subdivision 705-A has effect with modifications
705-225 Order in which tax cost setting amounts are to be worked out where linked entities have membership interests in other linked entities
705-227 Adjustment in working out step 3A of allocable cost amount to take account of membership interests held by linked entities in other linked entities
705-230 Adjustments to restrict step 4 reduction of allocable cost amount to effective distributions to head company in respect of direct membership interests
705-235 Adjustment to allocation of allocable cost amount to take account of owned profits or losses of certain linked entities
705-240 Modified application of section 705-57
705-245 Working out pre-CGT factors where subsidiary members have membership interests in other subsidiary members
Subdivision 705-E—Adjustments for errors etc.
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Guide to Subdivision 705-E
705-300 What this Subdivision is about
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Operative provisions
705-305 Object of this Subdivision
705-310 Operation of Part IVA of the Income Tax Assessment Act 1936
705-315 Errors that attract special adjustment action
705-320 Tax cost setting amounts taken to be correct
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Division 707—Losses for head companies when entities become members etc.
Subdivision 707-A—Transfer of previously unutilised losses to head company
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Guide to Subdivision 707-A
707-100 What this Subdivision is about
707-105 Who can utilise the loss?
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Objects
707-110 Objects of this Subdivision
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Application
707-115 What losses this Subdivision applies to
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Transfer of loss from joining entity to head company
707-120 Transfer of loss from joining entity to head company
707-125 Modified same business test for companies’ post-1999 losses
707-130 Modified pattern of distributions test
707-135 Transferring loss transferred to joining entity because same business test was passed
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Effect of transfer of loss
707-140 Effect of transfer of loss
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Cancelling the transfer of the loss
707-145 Cancelling the transfer of the loss
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What happens if the loss is not transferred?
707-150 Loss cannot be utilised for income year ending after the joining time
Subdivision 707-B—Can a transferred loss be utilised?
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Guide to Subdivision 707-B
707-200 What this Subdivision is about
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Operative provisions
707-205 Modified period for test for maintaining same ownership
707-210 Utilisation of certain losses transferred from a company depends on company that made the losses earlier
Subdivision 707-C—Amount of transferred losses that can be utilised
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Guide to Subdivision 707-C
707-300 What this Subdivision is about
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Object
707-305 Object of this Subdivision
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How much of a transferred loss can be utilised?
707-310 How much of a transferred loss can be utilised?
707-315 What is a bundle of losses?
707-320 What is the available fraction for a bundle of losses?
707-325 Modified market value of an entity becoming a member of a consolidated group
707-330 Losses transferred from former head company
707-335 Limit on utilising transferred losses if circumstances change during income year
707-340 Utilising transferred losses while exempt income remains
707-345 Other provisions are subject to this Subdivision
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Subdivision 707-D—Special rules about losses
707-400 Head company’s business before and after consolidation not compared
707-410 Exit history rule does not treat entity as having made a loss
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Division 709—Other rules applying when entities become subsidiary members etc.
Subdivision 709-A—Franking accounts
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Guide to Subdivision 709-A
709-50 What this Subdivision is about
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Object
709-55 Object of this Subdivision
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Treatment of franking accounts at joining time
709-60 Nil balance franking account for joining entity
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Treatment of subsidiary member’s franking account
709-65 Subsidiary member’s franking account does not operate
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Treatment of head company’s franking account
709-70 Credits arising in head company’s franking account
709-75 Debits arising in head company’s franking account
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Franking distributions by subsidiary member
709-80 Subsidiary member’s distributions on employee shares taken to be distributions by head company
709-85 Non-share distributions by subsidiary members taken to be distributions by head company
709-90 Subsidiary member’s distributions to foreign resident taken to be distributions by head company
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Payment of group liability by former subsidiary member
709-95 Payment of group liability by former subsidiary member
709-100 Refund of income tax to former subsidiary member
Subdivision 709-B—Imputation issues
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Guide to Subdivision 709-B
709-150 What this Subdivision is about
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Operative provisions
709-155 Testing consolidated groups
709-160 Subsidiary member is exempting entity
709-165 Subsidiary member is former exempting entity
709-170 Head company and subsidiary are exempting entities
709-175 Head company is former exempting entity
Subdivision 709-C—Treatment of excess franking deficit tax offsets when entity becomes a subsidiary member of a consolidated group
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Guide to Subdivision 709-C
709-180 What this Subdivision is about
709-185 Joining entity’s excess franking deficit tax offsets transferred to head company
709-190 Exit history rule not to treat leaving entity as having a franking deficit tax offset excess
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Division 711—Tax cost setting amount for membership interests where entities cease to be subsidiary members of consolidated groups
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Guide to Division 711
711-1 What this Division is about
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Application and object of this Division
711-5 Application and object of this Division
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Tax cost setting amount for membership interests etc.
711-10 Tax cost setting amount worked out under this Division
711-15 Tax cost setting amount where no multiple exit
711-20 What is the old group’s allocable cost amount for the leaving entity?
711-25 Terminating values of assets that the leaving entity takes with it—step 1 in working out allocable cost amount
711-30 What is the head company’s terminating value for an asset?
711-35 If head company becomes entitled to certain deductions—step 2 in working out allocable cost amount
711-40 Liabilities owed to the leaving entity by members of the old group—step 3 in working out allocable cost amount
711-45 Liabilities etc. owed by the leaving entity—step 4 in working out allocable cost amount
711-55 Tax cost setting amount for membership interests where multiple exit
711-65 Membership interests treated as having been acquired before 20 September 1985—simple case
711-70 Membership interests treated as having been acquired before 20 September 1985—multiple exit case
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Division 713—Rules for particular kinds of entities
Subdivision 713-A—Trusts
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Working out a joined group’s allocable cost amount for a joining trust
713-20 Increasing the step 1 amount for settled capital that could be distributed tax free in respect of discretionary interests
713-25 Undistributed, realised profits that accrue to joined group before joining time and could be distributed tax free in respect of discretionary interests—step 3 in working out allocable cost amount
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Determining destination of distribution by non-fixed trust
713-50 Factors to consider
Subdivision 713-C—Some unit trusts treated like head companies of consolidated groups
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Guide to Subdivision 713-C
713-120 What this Subdivision is about
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Object of this Subdivision
713-125 Object of this Subdivision
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Choice to form a consolidated group
713-130 Choosing to form a consolidated group
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Effects of choice
713-135 Effects of choice
713-140 Modifications of the applied law
Subdivision 713-E—Partnerships
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Guide to Subdivision 713-E
713-200 What this Subdivision is about
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Objects
713-205 Objects of this Subdivision
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Partnership cost setting interests etc.
713-210 Partnership cost setting interests
713-215 Terminating value for partnership cost setting interest
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Setting tax cost of partnership cost setting interests
713-220 Set tax cost of partnership cost setting interests if partner joins consolidated group
713-225 Tax cost setting amount for partnership cost setting interest
713-230 Reduction in allocable cost amount if partnership asset is over-depreciated
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Special rules where partnership joins consolidated group
713-235 Partnership joins group—set tax cost of partnership assets
713-240 Partnership joins group—tax cost setting amount for partnership asset
713-245 Partnership joins group—pre-CGT factor for partnership asset
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Special rules where partnership leaves consolidated group
713-250 Partnership leaves group—standard provisions modified
713-255 Partnership leaves group—tax cost setting amount for partnership cost setting interests
713-260 Partnership leaves group—tax cost setting amount for assets consisting of being owed certain liabilities
713-265 Partnership leaves group—adjustments to leaving partner’s allocable cost amount
713-270 Partnership leaves group—certain partnership cost setting interests treated as having been acquired before 20 September 1985
Subdivision 713-L—Life insurance companies
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Guide to Subdivision 713-L
713-500 What this Subdivision is about
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Operative provisions
713-505 Head company treated as a life insurance company
713-510 Certain subsidiaries of life insurance companies cannot be members of consolidated group
713-515 Modification of cost setting rules
713-520 Valuing certain liabilities
713-525 Obligation to value certain assets and liabilities
713-530 Certain amounts transferred to leaving entity
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Division 715—Interactions between this Part and other areas of the income tax law
Subdivision 715-A—Treatment of unrealised losses existing when ownership or control of a company changes before or during consolidation
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Object
715-15 Object of this Subdivision
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Effect on Subdivision 165-CC of a company becoming a member of a consolidated group
715-25 Subdivision 165-CC stops applying to earlier changeover time
715-30 Meaning of 165-CC tagged asset
715-35 Meaning of final RUNL
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165-CC tagged assets that affect tax cost setting amounts
715-50 Step 1 amount is reduced if membership interest in subsidiary member is 165-CC tagged asset and same business test is failed
715-55 Step 2 amount is affected if liability of subsidiary member is 165-CC tagged asset of another group member and same business test is failed
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165-CC tagged assets that form loss denial pools of head company when consolidated group is formed
715-60 Assets that the head company already owns
715-70 Assets of subsidiary member that become those of head company
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How Subdivision 165-CC applies to consolidated groups
715-75 Extension of single entity rule and entry history rule
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Effect on Subdivision 165-CC of entity leaving consolidated group
715-80 Application of sections 715-85 to 715-110
715-85 First changeover time for leaving company at or after leaving time
715-90 How same business test applies if leaving time is changeover time for leaving company
715-95 If ownership and control of leaving entity have not changed since head company’s last changeover time
715-100 First choice: adjustable values of leaving assets reduced to nil
715-105 Second choice: head company’s final RUNL applied in reducing adjustable values of leaving assets that are loss assets
715-110 Third choice: loss denial pool of leaving entity created
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Effect of assets in loss denial pool of head company becoming assets of leaving entity
715-120 What happens
715-125 First choice: adjustable values of leaving assets reduced to nil
715-130 Second choice: pool’s loss denial balance applied in reducing adjustable values of leaving assets that are loss assets
715-135 Third choice: loss denial pool of leaving entity created
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Effect of first and second choices on various kinds of assets
715-145 Effect of choice on adjustable value of leaving asset
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General provisions about loss denial pools
715-155 When asset leaves pool
715-160 How loss denial balance is applied to losses realised on assets in pool
715-165 When pool ceases to exist
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Choices under this Subdivision
715-175 When choice must be made
715-180 Head company to notify leaving entity of choice
715-185 Leaving entity may choose to cancel loss denial pool by reducing adjustable values of assets in the pool
Subdivision 715-B—How Subdivision 165-CD applies to consolidated groups and leaving entities
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How Subdivision 165-CD applies to consolidated groups
715-215 Extension of single entity rule and entry history rule
715-225 Working out adjusted unrealised loss using individual asset method
715-230 No reductions or other consequences for interests subject to loss cancellation under Subdivision 715-H
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How Subdivision 165-CD applies to leaving entity that is a company
715-240 Application of sections 715-245 to 715-260
715-245 If ownership or control of leaving entity has altered since head company’s last alteration time or formation of group
715-250 If head company has had an alteration time but ownership and control of leaving entity have not altered since
715-255 Consequences if leaving entity is a loss company at the leaving time
715-260 If neither of sections 715-245 and 715-250 applies
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How Subdivision 165-CD applies to leaving entity that is a trust
715-270 Subdivision 165-CD applies
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Subdivision 715-C—Common rules for the purposes of Subdivisions 715-A and 715-B
715-290 Additional assumptions to be made when using reference time
Subdivision 715-D—Treatment of company’s deferred losses under Subdivision 170-D on joining a consolidated group
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Key terminology
715-310 What is a 170-D deferred loss, and when it revives
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Deferred loss on 165-CC tagged asset
715-355 Head company’s own deferred losses at formation time
715-360 Deferred losses brought in by subsidiary member
715-365 How loss denial balance is applied when 170-D deferred loss revives
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Subdivision 715-G—How value shifting rules apply to a consolidated group
715-410 Extension of single entity rule and entry history rule
715-450 No reductions or other consequences for interests subject to loss cancellation under Subdivision 715-H
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Subdivision 715-H—Cancelling loss on realisation event for direct or indirect interest in a subsidiary member of a consolidated group
715-610 Cancellation of loss
715-615 Exception for interests in entity leaving consolidated group
715-620 Exception if loss attributable to certain matters
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Subdivision 715-V—Entity ceasing to be exempt from income tax on becoming subsidiary member of consolidated group
715-900 Transition time taken to be just before joining time
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Division 716—Miscellaneous special rules
Subdivision 716-A—Assessable income and deductions spread over several membership or non-membership periods
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Guide to Subdivision 716-A
716-1 What this Division is about
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Operative provisions
716-15 Assessable income spread over 2 or more income years
716-25 Deductions spread over 2 or more income years
716-70 Capital expenditure that is fully deductible in one income year
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Assessable income and deductions arising from share of net income of a partnership or trust, or from share of partnership loss
716-75 Application
716-80 Head company’s assessable income and deductions
716-85 Entity’s assessable income and deductions for a non-membership period
716-90 Entity’s share of assessable income or deductions of partnership or trust
716-95 Special rule if not all partnership or trust’s assessable income or deductions taken into account in working out amount
716-100 Spreading period
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Subdivision 716-Z—Other
716-800 Allocating amounts to periods if head company and subsidiary member have different income years
716-850 Grossing up threshold amounts for periods of less than 365 days
716-855 Working out the cost base or reduced cost base of a pre-CGT asset after certain roll-overs
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Division 717—International tax rules
Subdivision 717-A—Foreign tax credits
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Guide to Subdivision 717-A
717-1 What this Subdivision is about
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Objects
717-5 Objects of this Subdivision
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Foreign tax on amounts in head company’s assessable income
717-10 Head company taken to be liable for subsidiary member’s foreign tax
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Foreign tax on amounts not in head company’s assessable income
717-15 Transferring subsidiary member’s excess foreign tax credits from earlier years to head company
717-20 Where entity not subsidiary member for whole of income year
717-22 Excess foreign tax credits from non-membership period ending before head company’s income year starts
717-28 Excess foreign tax credits lost on joining consolidated group
717-30 Exit history rule does not treat leaving entity as having foreign tax credits
Subdivision 717-D—Transfer of certain surpluses under CFC, FIF and FLP provisions: entry rules
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Guide to Subdivision 717-D
717-200 What this Subdivision is about
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Object
717-205 Object of this Subdivision
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Transfers
717-210 Attribution surpluses
717-215 Attributed tax account surpluses
717-220 FIF attribution surpluses
717-225 FIF attributed tax account surpluses
717-227 Deferred attribution credits
717-230 Calculating FIF income where a company joins the group
Subdivision 717-E—Transfer of certain surpluses under CFC, FIF and FLP provisions: exit rules
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Guide to Subdivision 717-E
717-235 What this Subdivision is about
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Object
717-240 Object of this Subdivision
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Transfers
717-245 Attribution surpluses
717-250 Attributed tax account surpluses
717-255 FIF attribution surpluses
717-260 FIF attributed tax account surpluses
717-262 Deferred attribution credits
717-265 Calculating FIF income where a company leaves the group
Subdivision 717-F—Elections etc. relating to CFCs, FIFs and FLPs: entry rules
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Guide to Subdivision 717-F
717-270 What this Subdivision is about
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Application and object
717-275 Application
717-280 Object of this Subdivision
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Elections etc.
717-285 Pre-joining-time irrevocable elections etc. by joining entity not inherited by head company
717-290 Pre-joining-time actions of joining entity do not prevent head company from electing to apply the calculation method
717-292 Entry history rule does not affect when head company may elect to value trading stock at market value
Subdivision 717-G—Elections etc. relating to CFCs, FIFs and FLPs: exit rules
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Guide to Subdivision 717-G
717-295 What this Subdivision is about
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Application and object
717-300 Application
717-305 Object of this Subdivision
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Elections etc.
717-310 Pre-leaving-time irrevocable declarations, elections, choices and selections by head company not inherited by leaving entity
717-315 Pre-leaving-time actions of head company do not prevent leaving entity from electing to apply the calculation method
717-320 Exit history rule does not affect when leaving entity may elect to value trading stock at market value
Subdivision 717-J—Foreign dividend accounts
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Guide to Subdivision 717-J
717-500 What this Subdivision is about
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Object
717-505 Object of this Subdivision
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Treatment of foreign dividend accounts around joining time
717-510 No FDA surplus for joining company
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Single entity rule for foreign dividend accounts
717-515 Single entity rule for FDA credits and FDA debits
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FDA declaration for dividend paid by subsidiary member
717-520 Head company may make FDA declaration
717-525 Multiple FDA declarations for dividends paid on same day
717-530 Extended operation of sections 717-520 and 717-525
Subdivision 717-O—Offshore banking units
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Guide to Subdivision 717-O
717-700 What this Subdivision is about
717-705 Object of this Subdivision
717-710 Head company treated as OBU
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Division 719—MEC groups
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Subdivision 719-A—Modified application of Part 3-90 to MEC groups
719-2 Modified application of Part 3-90 to MEC groups
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Subdivision 719-B—MEC groups and their members
719-4 What this Subdivision is about
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Basic concepts
719-5 What is a MEC group?
719-10 What is a potential MEC group?
719-15 What is an eligible tier-1 company?
719-20 What is a top company and a tier-1 company?
719-25 Head company and subsidiary members of a MEC group
719-30 Treating entities as wholly-owned subsidiaries by disregarding employee shares
719-35 Treating entities held through non-fixed trusts as wholly-owned subsidiaries
719-40 Special conversion event—potential MEC group
719-45 Application of sections 703-20 and 703-25
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Choice to consolidate a potential MEC group
719-50 Eligible tier-1 companies may choose to consolidate a potential MEC group
719-55 When choice starts to have effect
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Provisional head company
719-60 Appointment of provisional head company
719-65 Qualifications for the provisional head company of a MEC group
719-70 Income year of new provisional head company to be the same as that of former provisional head company
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Head company
719-75 Head company
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Notice of events affecting group
719-80 Notice of events affecting MEC group
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Effects of change of head company
719-85 Application
719-90 New head company treated as substituted for old head company at all times before the transition time
719-95 No consequences of old head company becoming, and new head company ceasing to be, subsidiary member of the group
Subdivision 719-C—MEC group cost setting rules: joining cases
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Guide to Subdivision 719-C
719-150 What this Subdivision is about
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Application and object
719-155 Object of this Subdivision
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Modified application of tax cost setting rules for joining
719-160 Tax cost setting rules for joining have effect with modifications
719-165 Trading stock value not set for assets of eligible tier-1 companies
719-170 Modified effect of subsections 705-175(1) and 705-185(1)
Subdivision 719-F—Losses
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Guide to Subdivision 719-F
719-250 What this Subdivision is about
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Maintaining the same ownership to be able to utilise loss
719-255 Special rules
719-260 Special test for utilising a loss because a company maintains the same owners
719-265 What is the test company?
719-270 Assumptions about the test company having made the loss for an income year
719-275 Assumptions about nothing happening to affect direct and indirect ownership of the test company
719-280 Assumptions about the test company failing to meet the conditions in section 165-12
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Same business test and change of head company
719-285 Same business test and change of head company
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Bundles of losses and their available fractions
719-300 Application
719-305 Subdivision 707-C affects utilisation of losses made by ongoing head company while it was head company
719-310 Adjustment of available fractions for bundles of losses previously transferred to ongoing head company
719-315 Further adjustment of available fractions for all bundles
719-320 Limit on utilising losses other than the prior group losses
719-325 Cancellation of all losses in a bundle
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Subdivision 719-H—Imputation issues
719-425 Guide to Subdivision 719-H
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Operative provisions
719-430 Transfer of franking account balance on cessation event
719-435 Distributions by subsidiary members of MEC group taken to be distributions by head company
Subdivision 719-J—MEC group cost setting rules: leaving cases
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Guide to Subdivision 719-J
719-500 What this Subdivision is about
719-505 Application and object of this Subdivision
719-510 Modified operation of paragraphs 711-15(1)(b) and (c)
Subdivision 719-K—MEC group cost setting rules: pooling cases
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Guide to Subdivision 719-K
719-550 What this Subdivision is about
719-555 Application and object of this Subdivision
719-560 Pooled interests
719-565 Setting cost of reset interests
719-570 Cost setting amount
Subdivision 719-T—Interactions between this Part and other areas of the income tax law: special rules for MEC groups
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How Subdivision 165-CC applies to MEC groups
719-700 Changeover times under section 165-115C or 165-115D
719-705 Additional changeover times for head company of MEC group
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How Subdivision 165-CD applies to MEC groups
719-720 Alteration times under section 165-115L or 165-115M
719-725 Additional alteration times for head company of MEC group
719-730 Some alteration times only affect interests in top company
719-735 Some alteration times affect only pooled interests
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How indirect value shifting rules apply to a MEC group
719-755 Effect on MEC group cost setting rules if head company is losing entity or gaining entity for indirect value shift
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Cancelling loss on realisation event for direct or indirect interest in a subsidiary member of a MEC group
719-775 Cancellation of loss
719-780 Exception for pooled interests in eligible tier-1 companies
719-785 Exception for interests in top company
719-790 Exception for interests in entity leaving MEC group
719-795 Exception if loss attributable to certain matters
Subdivision 719-X—International tax rules
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Foreign dividend accounts
719-900 General rules about foreign dividend accounts
719-903 Special rules for certain FDA credits and FDA debits
719-905 Transfer of balance of foreign dividend accounts on change in identity of provisional head company
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Division 721—Liability for payment of tax where head company fails to pay on time
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Guide to Division 721
721-1 What this Division is about
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Object
721-5 Object of this Division
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When this Division operates
721-10 When this Division operates
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Joint and several liability of contributing member
721-15 Head company and contributing members jointly and severally liable to pay group liability
721-17 Notice of joint and several liability for general interest charge
721-20 Limit on liability where group first comes into existence
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Tax sharing agreements
721-25 When a group liability is covered by a tax sharing agreement
721-30 TSA contributing members liable for contribution amounts
721-32 Notice of general interest charge liability under TSA
721-35 When a TSA contributing member has left the group clear of the group liability
721-40 TSA liability and group liability are linked
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Part 3-95—Value shifting
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Division 723—Direct value shifting by creating right over non-depreciating asset
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Subdivision 723-A—Reduction in loss from realising non-depreciating asset
723-1 Object
723-10 Reduction in loss from realising non-depreciating asset over which right has been created
723-15 Reduction in loss from realising non-depreciating asset at the same time as right is created over it
723-20 Exceptions
723-25 Realisation event that is only a partial realisation
723-35 Multiple rights created to take advantage of the $50,000 threshold
723-40 Application to CGT asset that is also trading stock or revenue asset
723-50 Effects if right created over underlying asset is also trading stock or a revenue asset
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Subdivision 723-B—Reducing reduced cost base of interests in entity that acquires non-depreciating asset under roll-over
723-105 Reduced cost base of interest reduced when interest realised at a loss
723-110 Direct and indirect roll-over replacement for underlying asset
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Division 725—Direct value shifting affecting interests in companies and trusts
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Guide to Division 725
725-1 What this Division is about
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Subdivision 725-A—Scope of the direct value shifting rules
725-45 Main object
725-50 When a direct value shift has consequences under this Division
725-55 Controlling entity test
725-65 Cause of the value shift
725-70 Consequences for down interest only if there is a material decrease in its market value
725-80 Who is an affected owner of a down interest?
725-85 Who is an affected owner of an up interest?
725-90 Direct value shift that will be reversed
725-95 Direct value shift resulting from reversal
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Subdivision 725-B—What is a direct value shift
725-145 When there is a direct value shift
725-150 Issue of equity or loan interests at a discount
725-155 Meaning of down interests, decrease time, up interests and increase time
725-160 What is the nature of a direct value shift?
725-165 If market value decrease or increase is only partly attributable to the scheme
Subdivision 725-C—Consequences of a direct value shift
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General
725-205 Consequences depend on character of down interests and up interests
725-210 Consequences for down interests depend on pre-shift gains and losses
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Special cases
725-220 Neutral direct value shifts
725-225 Issue of bonus shares or units
725-230 Off-market buy-backs
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Subdivision 725-D—Consequences for down interest or up interest as CGT asset
725-240 CGT consequences; meaning of adjustable value
725-245 Table of taxing events generating a gain for interests as CGT assets
725-250 Table of consequences for adjustable values of interests as CGT assets
725-255 Multiple CGT consequences for the same down interest or up interest
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Subdivision 725-E—Consequences for down interest or up interest as trading stock or a revenue asset
725-310 Consequences for down interest or up interest as trading stock
725-315 Adjustable value of trading stock
725-320 Consequences for down interest or up interest as a revenue asset
725-325 Adjustable value of revenue asset
725-335 How to work out those consequences
725-340 Multiple trading stock or revenue asset consequences for the same down interest or up interest
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Subdivision 725-F—Value adjustments and taxed gains
725-365 Decreases in adjustable values of down interests (with pre-shift gains), and taxing events generating a gain
725-370 Uplifts in adjustable values of up interests under certain table items
725-375 Uplifts in adjustable values of up interests under other table items
725-380 Decreases in adjustable value of down interests (with pre-shift losses)
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Division 727—Indirect value shifting affecting interests in companies and trusts, and arising from non-arm’s length dealings
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Guide to Division 727
727-1 What this Division is about
727-5 What is an indirect value shift?
727-10 How does this Division deal with indirect value shifts?
727-15 When does an indirect value shift have consequences under this Division?
727-25 Effect of this Division on realisations at a loss that occur before the nature or extent of an indirect value shift can be fully determined
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Subdivision 727-A—Scope of the indirect value shifting rules
727-95 Main object
727-100 When an indirect value shift has consequences under this Division
727-105 Ultimate controller test
727-110 Common-ownership nexus test (if both losing and gaining entities are closely held)
727-125 No consequences if losing entity is a superannuation entity
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Subdivision 727-B—What is an indirect value shift
727-150 How to determine whether a scheme results in an indirect value shift
727-155 Providing economic benefits
727-160 When an economic benefit is provided in connection with a scheme
727-165 Preventing double-counting of economic benefits
Subdivision 727-C—Exclusions
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Guide to Subdivision 727-C
727-200 What this Subdivision is about
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General
727-215 Amount does not exceed $50,000
727-220 Disposal of asset at cost, or at undervalue if full value is not reflected in adjustable values of equity or loan interests in the losing entity
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Indirect value shifts involving services
727-230 Services provided by losing entity to gaining entity for at least their direct cost
727-235 Services provided by gaining entity to losing entity for no more than a commercially realistic price
727-240 What services certain provisions apply to
727-245 How to work out certain amounts for the purposes of sections 727-230 and 727-235
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Anti-overlap provisions
727-250 Distribution by an entity to a member or beneficiary
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Miscellaneous
727-260 Shift down a wholly-owned chain of entities
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Subdivision 727-D—Working out the market value of economic benefits
727-300 What the rules in this Subdivision are for
727-315 Transfer, for its adjustable value, of depreciating asset acquired for less than $1,500,000
Subdivision 727-E—Key concepts
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Ultimate controller
727-350 Ultimate controller
727-355 Control (for value shifting purposes) of a company
727-360 Control (for value shifting purposes) of a fixed trust
727-365 Control (for value shifting purposes) of a non-fixed trust
727-370 Preventing double counting for percentage stake tests
727-375 Tests in this Subdivision are exhaustive
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Common-ownership nexus and ultimate stake of a particular percentage
727-400 When 2 entities have a common-ownership nexus within a period
727-405 Ultimate stake of a particular percentage in a company
727-410 Ultimate stake of a particular percentage in a fixed trust
727-415 Rules for tracing
Subdivision 727-F—Consequences of an indirect value shift
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Guide to Subdivision 727-F
727-450 What this Subdivision is about
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Operative provisions
727-455 Consequences of the indirect value shift
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Affected interests
727-460 Affected interests in the losing entity
727-465 Affected interests in the gaining entity
727-470 Exceptions
727-520 Equity or loan interest and related terms
727-525 Indirect equity or loan interest
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Affected owners
727-530 Who are the affected owners
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Choices about method to be used
727-550 Choosing the adjustable value method
727-555 Giving other affected owners information about the choice
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Subdivision 727-G—The realisation time method
727-600 What this Subdivision is about
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Operative provisions
727-610 Consequences of indirect value shift
727-615 Reduction of loss on realisation event for affected interest in losing entity
727-620 Reduction of gain on realisation event for affected interest in gaining entity
727-625 Total gain reductions not to exceed total loss reductions
727-630 How cap in section 727-625 applies if affected interest is also trading stock or a revenue asset
727-635 Splitting an equity or loan interest
727-640 Merging equity or loan interests
727-645 Effect of CGT roll-over
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Further exclusion for certain 95% services indirect value shifts if realisation time method must be used
727-700 When 95% services indirect value shift is excluded
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95% services indirect value shifts that are not excluded
727-705 Another provision of the income tax law affects amount related to services by at least $100,000
727-710 Ongoing or recent service arrangement reduces value of losing entity by at least $100,000
727-715 Service arrangements reduce value of losing entity that is a group service provider by at least $500,000
727-720 Abnormal service arrangement reduces value of losing entity that is not a group service provider by at least $500,000
727-725 Meaning of predominantly-services indirect value shift
Subdivision 727-H—The adjustable value method
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Guide to Subdivision 727-H
727-750 What this Subdivision is about
727-755 Consequences of indirect value shift
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Reductions of adjustable value
727-770 Reduction under the adjustable value method
727-775 Has there been a disaggregated attributable decrease?
727-780 Working out the reduction on a loss-focussed basis
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Uplifts of adjustable value
727-800 Uplift under the attributable increase method
727-805 Has there been a disaggregated attributable increase?
727-810 Scaling-down formula
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Consequences of the method for various kinds of assets
727-830 CGT assets
727-835 Trading stock
727-840 Revenue assets
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Subdivision 727-K—Reduction of loss on equity or loan interests realised before the IVS time
727-850 Consequences of scheme under this Subdivision
727-855 Presumed indirect value shift
727-860 Conditions about the prospective gaining entity
727-865 How other provisions of this Division apply to support this Subdivision
727-870 Effect of CGT roll-over
727-875 Application to CGT asset that is also trading stock or revenue asset
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Subdivision 727-L—Indirect value shift resulting from a direct value shift
727-905 How this Subdivision affects the rest of this Division
727-910 Treatment of value shifted under the direct value shift
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Volume 8
Chapter 4—International aspects of income tax
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Part 4-5—General
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Division 768—Exempt foreign income and gains
Subdivision 768-G—Reduction in capital gains and losses arising from CGT events in relation to non-portfolio interests in active foreign companies
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Guide to Subdivision 768-G
768-500 What this Subdivision is about
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Operative provisions
768-505 Reducing a capital gain or loss from certain CGT events in relation to non-portfolio interests
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Active foreign business asset percentage
768-510 Active foreign business asset percentage
768-515 Choices to apply market value method or book value method
768-520 Market value method—choice made under subsection 768-515(1)
768-525 Book value method—choice made under subsection 768-515(2)
768-530 Active foreign business asset percentage—modifications for foreign life insurance companies and foreign general insurance companies
768-535 Modified rules for foreign wholly-owned groups
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Types of assets of a foreign company
768-540 Active foreign business assets of a foreign company
768-545 Assets included in the total assets of a foreign company
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Voting percentages in a company
768-550 Direct voting percentage in a company
768-555 Indirect voting percentage in a company
768-560 Total voting percentage in a company
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Division 775—Foreign currency gains and losses
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Guide to Division 775
775-5 What this Division is about
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Subdivision 775-A—Objects of this Division
775-10 Objects of this Division
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Subdivision 775-B—Realisation of forex gains or losses
775-15 Forex realisation gains are assessable
775-20 Certain forex realisation gains are exempt income
775-25 Certain forex realisation gains are non-assessable non-exempt income
775-30 Forex realisation losses are deductible
775-35 Certain forex realisation losses are disregarded
775-40 Disposal of foreign currency or right to receive foreign currency—forex realisation event 1
775-45 Ceasing to have a right to receive foreign currency—forex realisation event 2
775-50 Ceasing to have an obligation to receive foreign currency—forex realisation event 3
775-55 Ceasing to have an obligation to pay foreign currency—forex realisation event 4
775-60 Ceasing to have a right to pay foreign currency—forex realisation event 5
775-65 Only one forex realisation event to be counted
775-70 Tax consequences of certain short-term forex realisation gains
775-75 Tax consequences of certain short-term forex realisation losses
775-80 You may choose not to have sections 775-70 and 775-75 apply to you
775-85 Forex cost base of a right to receive foreign currency
775-90 Forex entitlement base of a right to pay foreign currency
775-95 Proceeds of assuming an obligation to pay foreign currency
775-100 Net costs of assuming an obligation to receive foreign currency
775-105 Currency exchange rate effect
775-110 Constructive receipts and payments
775-115 Economic set-off to be treated as legal set-off
775-120 Non-arm’s length transactions
775-125 CGT consequences of the acquisition of foreign currency as a result of forex realisation event 2 or 3
775-130 Certain deductions not allowable
775-135 Right to receive or pay foreign currency
775-140 Obligation to pay or receive foreign currency
775-145 Application of forex realisation events to currency and fungible rights and obligations
775-150 Transitional election
775-155 Applicable commencement date
775-160 Exception—event happens before the applicable commencement date
775-165 Exception—currency or right acquired, or obligation incurred, before the applicable commencement date
775-170 Exemption for ADIs and non-ADI financial institutions
775-175 Application to things happening before commencement
Subdivision 775-C—Roll-over relief for facility agreements
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Guide to Subdivision 775-C
775-180 What this Subdivision is about
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Operative provisions
775-185 What is a facility agreement?
775-190 What is an eligible security?
775-195 You may choose roll-over relief for a facility agreement
775-200 Forex realisation event 4 does not apply
775-205 What is a roll-over?
775-210 Notional loan
775-215 Discharge of obligation to pay the principal amount of a notional loan under a facility agreement—forex realisation event 6
775-220 Material variation of a facility agreement—forex realisation event 7
Subdivision 775-D—Qualifying forex accounts that pass the limited balance test
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Guide to Subdivision 775-D
775-225 What this Subdivision is about
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Operative provisions
775-230 Election to have this Subdivision apply to one or more qualifying forex accounts
775-235 Variation of election
775-240 Withdrawal of election
775-245 When does a qualifying forex account pass the limited balance test?
775-250 Tax consequences of passing the limited balance test
775-255 Notional realisation when qualifying forex account starts to pass the limited balance test
775-260 Modification of tax recognition time
Subdivision 775-E—Retranslation for qualifying forex accounts
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Guide to Subdivision 775-E
775-265 What this Subdivision is about
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Operative provisions
775-270 You may choose retranslation for a qualifying forex account
775-275 Withdrawal of choice
775-280 Tax consequences of choosing retranslation for an account
775-285 Retranslation of gains and losses relating to a qualifying forex account—forex realisation event 8
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Division 820—Thin capitalisation rules
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Guide to Division 820
820-1 What this Division is about
820-5 Does this Division apply to an entity?
820-10 Map of Division
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Subdivision 820-A—Preliminary
820-30 Object of Division
820-32 Exemption for private or domestic assets and non-debt liabilities
820-35 Application—$250,000 threshold
820-37 Application—assets threshold
820-39 Exemption of certain special purpose entities
820-40 Meaning of debt deduction
Subdivision 820-B—Thin capitalisation rules for outward investing entities (non-ADI)
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Guide to Subdivision 820-B
820-65 What this Subdivision is about
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Operative provisions
820-85 Thin capitalisation rule for outward investing entities (non-ADI)
820-90 Maximum allowable debt
820-95 Safe harbour debt amount—outward investor (general)
820-100 Safe harbour debt amount—outward investor (financial)
820-105 Arm’s length debt amount
820-110 Worldwide gearing debt amount
820-115 Amount of debt deduction disallowed
820-120 Application to part year periods
Subdivision 820-C—Thin capitalisation rules for inward investing entities (non-ADI)
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Guide to Subdivision 820-C
820-180 What this Subdivision is about
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Operative provisions
820-185 Thin capitalisation rule for inward investing entities (non-ADI)
820-190 Maximum allowable debt
820-195 Safe harbour debt amount—inward investment vehicle (general)
820-200 Safe harbour debt amount—inward investment vehicle (financial)
820-205 Safe harbour debt amount—inward investor (general)
820-210 Safe harbour debt amount—inward investor (financial)
820-215 Arm’s length debt amount
820-220 Amount of debt deduction disallowed
820-225 Application to part year periods
Subdivision 820-D—Thin capitalisation rules for outward investing entities (ADI)
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Guide to Subdivision 820-D
820-295 What this Subdivision is about
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Operative provisions
820-300 Thin capitalisation rule for outward investing entities (ADI)
820-305 Minimum capital amount
820-310 Safe harbour capital amount
820-315 Arm’s length capital amount
820-320 Worldwide capital amount
820-325 Amount of debt deduction disallowed
820-330 Application to part year periods
Subdivision 820-E—Thin capitalisation rules for inward investing entities (ADI)
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Guide to Subdivision 820-E
820-390 What this Subdivision is about
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Operative provisions
820-395 Thin capitalisation rule for inward investing entities (ADI)
820-400 Minimum capital amount
820-405 Safe harbour capital amount
820-410 Arm’s length capital amount
820-415 Amount of debt deduction disallowed
820-420 Application to part year periods
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Subdivision 820-EA—Some financial entities may choose to be treated as ADIs
820-430 When choice can be made, and what effect it has
820-435 Conditions
820-440 Revocation of choice
820-445 How this Subdivision interacts with Subdivisions 820-F, 820-FA and 820-FB
Subdivision 820-F—Thin capitalisation rules for resident TC groups
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Guide to Subdivision 820-F
820-450 What this Subdivision is about
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Operative provisions
820-455 Removal of grouping under this Subdivision
820-456 Income year starts on or after cut-off day but before 1 July 2003
820-457 Income year includes, but does not start on, cut-off day
820-458 Choice by foreign bank to include its Australian permanent establishments in the resident TC group
820-460 Application
820-465 Effect on entities in group if debt deduction disallowed
820-470 Values to be based on what would be in consolidated accounts for group
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How to construct a resident TC group for an income year
820-500 Choice to be made by top entity of a maximum TC group
820-505 Single group
820-510 Multiple groups
820-515 Partnerships, trusts, and Australian permanent establishments of foreign banks, included in a resident TC group
820-520 No grouping
820-525 Effect of choice
820-530 Entities making up group before end of income year
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How this Division applies to a resident TC group
820-550 Classification of the resident TC group
820-552 Treatment of exempt special purpose entities
820-555 Rest of Division not to apply to group headed by foreign-controlled Australian ADI or its holding company
820-560 Application of Subdivisions 820-B and 820-C to group
820-562 Application of Subdivision 820-D to group
820-565 Additional application of Subdivision 820-D to group that includes foreign-controlled Australian ADI
820-570 Effect on safe harbour capital amount if foreign-controlled Australian ADI in the group on-lends section 128F amounts
820-575 Additional application of Subdivision 820-E to group that includes Australian permanent establishment of foreign bank
Subdivision 820-FA—How the thin capitalisation rules apply to consolidated groups and MEC groups
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Guide to Subdivision 820-FA
820-579 What this Subdivision is about
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Operative provisions
820-581 How this Division applies to head company for income year in which group comes into existence or ceases to exist
820-583 Classification of head company
820-584 Exempt special purpose entities treated as not being member of group
820-585 Exemption for consolidated group headed by foreign-controlled Australian ADI or its holding company
820-587 Additional application of Subdivision 820-D to MEC group that includes foreign-controlled Australian ADI
820-589 How Subdivision 820-D applies to a MEC group
820-591 Effect on safe harbour capital amount if group member is foreign-controlled Australian ADI and on-lends section 128F amounts
Subdivision 820-FB—Grouping foreign bank branches with a consolidated group, MEC group or single Australian resident company
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Guide to Subdivision 820-FB
820-595 What this Subdivision is about
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Choice to group with foreign bank branches
820-597 Choice by consolidated group or MEC group
820-599 Choice by single Australian resident company that is not part of a consolidatable group or potential MEC group
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Effect of choice
820-601 Application
820-603 General
820-605 Effect on foreign bank if certain debt deductions disallowed
820-607 Effect on test periods under this Division
820-609 Effect on classification of head company or single company
820-611 Values to be based on what would be in consolidated accounts for group
820-613 How Subdivision 820-D applies if head company or single company is treated as including foreign bank branches
820-615 How Subdivision 820-E applies if head company or single company is treated as including foreign bank branches
820-617 Effect on safe harbour capital amount if single company is foreign-controlled Australian ADI and on-lends section 128F amounts
Subdivision 820-G—Calculating the average values
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Guide to Subdivision 820-G
820-625 What this Subdivision is about
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How to calculate the average values
820-630 Methods of calculating average values
820-635 The opening and closing balances method
820-640 The 3 measurement days method
820-645 The frequent measurement method
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Special rules about values and valuation
820-675 Amount to be expressed in Australian currency
820-680 Valuation of assets, liabilities and equity capital
820-685 Valuation of debt capital
820-690 Commissioner’s power
Subdivision 820-H—Control of entities
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Guide to Subdivision 820-H
820-740 What this Subdivision is about
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Australian controller of a foreign entity
820-745 What is an Australian controlled foreign entity?
820-750 What is an Australian controller of a controlled foreign company?
820-755 What is an Australian controller of a controlled foreign trust?
820-760 What is an Australian controller of a controlled foreign corporate limited partnership?
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Foreign controlled Australian entity
820-780 What is a foreign controlled Australian entity?
820-785 What is a foreign controlled Australian company?
820-790 What is a foreign controlled Australian trust?
820-795 What is a foreign controlled Australian partnership?
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Thin capitalisation control interest
820-815 General rule about thin capitalisation control interest in a company, trust or partnership
820-820 Special rules about calculating TC control interest held by an entity
820-825 Special rules about calculating TC control interests held by a group of entities
820-830 Special rules about determining percentage of TC control interest
820-835 Commissioner’s power
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TC direct control interest, TC indirect control interest and TC control tracing interest
820-855 TC direct control interest in a company
820-860 TC direct control interest in a trust
820-865 TC direct control interest in a partnership
820-870 TC indirect control interest in a company, trust or partnership
820-875 TC control tracing interest in a company, trust or partnership
Subdivision 820-HA—Controlled foreign entity debt and controlled foreign entity equity
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Guide to Subdivision 820-HA
820-880 What this Subdivision is about
820-881 Application
820-885 What is controlled foreign entity debt?
820-890 What is controlled foreign entity equity?
Subdivision 820-I—Associate entities
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Guide to Subdivision 820-I
820-900 What this Subdivision is about
820-905 Associate entity
820-910 Associate entity debt
820-915 Associate entity equity
820-920 Associate entity excess amount
Subdivision 820-J—Equity interest in a trust or partnership
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Guide to Subdivision 820-J
820-925 What this Subdivision is about
820-930 Equity interest in a trust or partnership
Subdivision 820-K—Zero-capital amount
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Guide to Subdivision 820-K
820-940 What this Subdivision is about
820-942 How to work out the zero-capital amount
Subdivision 820-KA—Cost-free debt capital and excluded equity interests
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Guide to Subdivision 820-KA
820-945 What this Subdivision is about
820-946 Cost-free debt capital and excluded equity interest
Subdivision 820-L—Record keeping requirements
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Guide to Subdivision 820-L
820-950 What this Subdivision is about
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Records about Australian permanent establishments
820-960 Records about Australian permanent establishments
820-965 Review of Commissioner’s decision
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Records about arm’s length amounts
820-980 Records about arm’s length debt amount and arm’s length capital amount
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Records about asset revaluations
820-985 Methodology of revaluation and independence of valuer
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Offences committed by certain entities
820-990 Offences—treatment of partnerships
820-995 Offences—treatment of unincorporated companies
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Division 830—Foreign hybrids
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Guide to Division 830
830-1 What this Division is about
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Subdivision 830-A—Meaning of “foreign hybrid”
830-5 Foreign hybrid
830-10 Foreign hybrid limited partnership
830-15 Foreign hybrid company
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Subdivision 830-B—Extension of normal partnership provisions to foreign hybrid companies
830-20 Treatment of company as a partnership
830-25 Partners are the shareholders in the company
830-30 Individual interest of a partner in net income etc. equals percentage of notional distribution of company’s profits
830-35 Partner’s interest in assets
830-40 Control and disposal of share in partnership income
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Subdivision 830-C—Special rules applicable while an entity is a foreign hybrid
830-45 Partner’s revenue and net capital losses from foreign hybrid not to exceed partner’s loss exposure amount
830-50 Deduction etc. where partner’s foreign hybrid revenue loss amount and foreign hybrid net capital loss amount are less than partner’s loss exposure amount
830-55 Meaning of foreign hybrid net capital loss amount
830-60 Meaning of loss exposure amount
830-65 Meaning of outstanding foreign hybrid revenue loss amount
830-70 Meaning of outstanding foreign hybrid net capital loss amount
830-75 Extended meaning of subject to tax
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Subdivision 830-D—Special rules applicable when an entity becomes or ceases to be a foreign hybrid
830-80 Setting the tax cost of partners’ interests in the assets of an entity that becomes a foreign hybrid
830-85 Setting the tax cost of assets of an entity when it ceases to be a foreign hybrid
830-90 What the expression tax cost is set means
830-95 What the expression tax cost setting amount means
830-100 What the expression tax cost means
830-105 What the expression asset-based income tax regime means
830-110 No disposal of assets etc. on entity becoming or ceasing to be a foreign hybrid
830-115 Tax losses cannot be transferred to a foreign hybrid
830-120 End of CFC’s last statutory accounting period
830-125 How long interest in asset, or asset, held
Chapter 5—Administration
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Part 5-30—Record-keeping and other obligations
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Division 900—Substantiation rules
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Guide to Division 900
900-1 What this Division is about
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Subdivision 900-A—Application of Division
900-5 Application of the requirements of Division 900
900-10 Substantiation requirement
900-12 Application to recipients and payers of certain withholding payments
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Subdivision 900-B—Substantiating work expenses
900-15 Getting written evidence
900-20 Keeping travel records
900-25 Retaining the written evidence and travel records
900-30 Meaning of work expense
900-35 Exception for small total of expenses
900-40 Exception for laundry expenses below a certain limit
900-45 Exception for work expense related to award transport payment
900-50 Exception for domestic travel allowance expenses
900-55 Exception for overseas travel allowance expenses
900-60 Exception for reasonable overtime meal allowance
900-65 Crew members on international flights need not keep travel records
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Subdivision 900-C—Substantiating car expenses
900-70 Getting written evidence
900-75 Retaining the written evidence and odometer records
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Subdivision 900-D—Substantiating business travel expenses
900-80 Getting written evidence
900-85 Keeping travel records
900-90 Retaining the written evidence and travel records
900-95 Meaning of business travel expense
Subdivision 900-E—Written evidence
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Guide to Subdivision 900-E
900-100 What this Subdivision is about
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Operative provisions
900-105 Ways of getting written evidence
900-110 Time limits
900-115 Written evidence from supplier
900-120 Written evidence of depreciating asset expense
900-125 Evidence of small expenses
900-130 Evidence of expenses considered otherwise too hard to substantiate
900-135 Evidence on a payment summary
Subdivision 900-F—Travel records
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Guide to Subdivision 900-F
900-140 What this Subdivision is about
900-145 Purpose of a travel record
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Operative provisions
900-150 Recording activities in travel records
900-155 Showing which of your activities were income-producing activities
Subdivision 900-G—Retaining and producing records
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Guide to Subdivision 900-G
900-160 What this Subdivision is about
900-165 The retention period
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Operative provisions
900-170 Extending the retention period if an expense is disputed
900-175 Commissioner may tell you to produce your records
900-180 How to comply with a notice
900-185 What happens if you don’t comply
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Subdivision 900-H—Relief from effects of failing to substantiate
900-195 Commissioner’s discretion to review failure to substantiate
900-200 Reasonable expectation that substantiation would not be required
900-205 What if your documents are lost or destroyed?
Subdivision 900-I—Award transport payments
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Guide to Subdivision 900-I
900-210 What this Subdivision is about
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Operative provisions
900-215 Deducting an expense related to an award transport payment
900-220 Definition of award transport payment
900-225 Substituted industrial instruments
900-230 Changes to industrial instruments applied for before 29 October 1986
900-235 Changes to industrial instruments solely referable to matters in the instrument
900-240 Deducting in anticipation of receiving award transport payment
900-245 Effect of exception in this Subdivision on exception for small total of expenses
900-250 Effect of exception in this Subdivision on methods of calculating car expense deductions
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Part 5-35—Miscellaneous
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Division 905—Offences
905-5 Application of the Criminal Code
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Division 909—Regulations
909-1 Regulations
Chapter 6—The Dictionary
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Part 6-1—Concepts and topics
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Division 950—Rules for interpreting this Act
950-100 What forms part of this Act
950-105 What does not form part of this Act
950-150 Guides, and their role in interpreting this Act
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Division 960—General
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Subdivision 960-C—Foreign currency
960-49 Objects of this Subdivision
960-50 Translation of amounts into Australian currency
960-55 Application of translation rules
Subdivision 960-D—Functional currency
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Guide to Subdivision 960-D
960-56 What this Subdivision is about
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Operative provisions
960-59 Object of this Subdivision
960-60 You may choose a functional currency
960-65 Backdated startup choice
960-70 What is the applicable functional currency?
960-75 What is a transferor trust?
960-80 Translation rules
960-85 Special rule about translation—events that happened before the current choice took effect
960-90 Withdrawal of choice
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Subdivision 960-E—Entities
960-100 Entities
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Subdivision 960-F—Distribution by corporate tax entities
960-115 Meaning of corporate tax entity
960-120 Meaning of distribution
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Subdivision 960-G—Membership of entities
960-130 Members of entities
960-135 Membership interest in an entity
960-140 Ordinary membership interest
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Subdivision 960-H—Abnormal trading in shares or units
960-220 Meaning of trading
960-225 Abnormal trading
960-230 Abnormal trading—5% of shares or units in one transaction
960-235 Abnormal trading—suspected 5% of shares or units in a series of transactions
960-240 Abnormal trading—suspected acquisition or merger
960-245 Abnormal trading—20% of shares or units traded over 60 day period
Subdivision 960-M—Indexation
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Guide to Subdivision 960-M
960-260 What this Subdivision is about
960-265 The provisions for which indexation is relevant
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Operative provisions
960-270 Indexing amounts
960-275 Indexation factor
960-280 Index number
Subdivision 960-Q—Small business taxpayers
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Guide to Subdivision 960-Q
960-330 What this Subdivision is about
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Operative provisions
960-335 Meaning of small business taxpayer
960-340 Meaning of average turnover
960-345 Meaning of group turnover
960-350 Recalculating average turnover for opening years
960-355 Winding up a business
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Subdivision 960-R—Pre-GST annual turnover
960-370 Meaning of pre-GST annual turnover
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Division 974—Debt and equity interests
Subdivision 974-A—General
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Guide to Division 974
974-1 What this Division is about
974-5 Overview of Division
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Operative provisions
974-10 Object
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Subdivision 974-B—Debt interests
974-15 Meaning of debt interest
974-20 The test for a debt interest
974-25 Exceptions to the debt test
974-30 Providing a financial benefit
974-35 Valuation of financial benefits—general rules
974-40 Valuation of financial benefits—rights and options to terminate early
974-45 Valuation of financial benefits—convertible interests
974-50 Valuation of financial benefits—value in present value terms
974-55 The debt interest and its issue
974-60 Debt interest arising out of obligations owed by a number of entities
974-65 Commissioner’s power
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Subdivision 974-C—Equity interests in companies
974-70 Meaning of equity interest in a company
974-75 The test for an equity interest
974-80 Equity interest arising from arrangement funding return through connected entities
974-85 Right or return contingent on economic performance
974-90 Right or return at discretion of company or connected entity
974-95 The equity interest
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Subdivision 974-D—Common provisions
974-100 Treatment of convertible and converting interests
974-105 Effect of action taken in relation to interest arising from related schemes
974-110 Effect of material change
974-112 Determinations by Commissioner
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Subdivision 974-E—Non-share distributions by a company
974-115 Meaning of non-share distribution
974-120 Meaning of non-share dividend
974-125 Meaning of non-share capital return
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Subdivision 974-F—Related concepts
974-130 Financing arrangement
974-135 Effectively non-contingent obligation
974-140 Ordinary debt interest
974-145 Benchmark rate of return
974-150 Schemes
974-155 Related schemes
974-160 Financial benefit
974-165 Convertible and converting interests
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Division 975—Concepts about companies
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Subdivision 975-A—General
975-100 When a company is in existence
975-150 Position to affect rights in relation to a company
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Subdivision 975-W—Wholly-owned groups of companies
975-500 Wholly-owned groups
975-505 What is a 100% subsidiary?
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Division 976—Imputation
976-1 Franked part of a distribution
976-5 Unfranked part of a distribution
976-10 The part of a distribution that is franked with an exempting credit
976-15 The part of a distribution that is franked with a venture capital credit
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Division 977—Realisation events, and the gains and losses they realise for income tax purposes
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CGT assets
977-5 Realisation event
977-10 Loss realised for income tax purposes
977-15 Gain realised for income tax purposes
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Trading stock
977-20 Realisation event
977-25 Disposal of trading stock: loss realised for income tax purposes
977-30 Ending of an income year: loss realised for income tax purposes
977-35 Disposal of trading stock: gain realised for income tax purposes
977-40 Ending of an income year: gain realised for income tax purposes
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Revenue assets
977-50 Meaning of revenue asset
977-55 Loss or gain realised for income tax purposes
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Part 6-5—Dictionary definitions
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Division 995—Definitions
995-1 Definitions [see Note 2]
Volume 9