Skip to main
Help and resources
Register
for My Account
Sign in
to My Account
Search
Australian Government
Federal Register of Legislation
Site navigation
Constitution
Acts
Legislative instruments
Notifiable instruments
Gazettes
Administrative Arrangements
Prerogative instruments
Norfolk Island
Home
Acts
In force
Text
Details
Authorises
Downloads
All versions
Interactions
Income Tax Assessment Act 1997
No. 38, 1997
In force
Administered by
Department of the Treasury
Superseded version
View latest version
View as made version
Order print copy
Save this title to My Account
Set up an alert
C2004C00441
01 December 2004
-
21 February 2005
Legislation text
View document
Select value
Act
Filter active
Table of contents
Enter text to search the table of contents
Collapse
Volume 1
Chapter 1—Introduction and core provisions
Collapse
Part 1-1—Preliminary
Collapse
Division 1—Preliminary
1-1 Short title [see Note 1]
1-2 Commencement
1-3 Differences in style not to affect meaning
Collapse
Part 1-2—A Guide to this Act
Collapse
Division 2—How to use this Act
Collapse
Subdivision 2-A—How to find your way around
2-1 The design
Collapse
Subdivision 2-B—How the Act is arranged
2-5 The pyramid
Collapse
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
Collapse
Subdivision 2-D—The numbering system
2-25 Purposes
2-30 Gaps in the numbering
Collapse
Subdivision 2-E—Status of Guides and other non-operative material
2-35 Non-operative material
2-40 Guides
2-45 Other material
Collapse
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
Collapse
Part 1-3—Core provisions
Collapse
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
Collapse
Division 6—Assessable income and exempt income
Collapse
Guide to Division 6
6-1 Diagram showing relationships among concepts in this Division
Collapse
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
Collapse
Division 8—Deductions
8-1 General deductions
8-5 Specific deductions
8-10 No double deductions
Collapse
Part 1-4—Checklists of what is covered by concepts used in the core provisions
Collapse
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
Collapse
Division 10—Particular kinds of assessable income
10-1 Effect of this Division
10-5 List of provisions about assessable income
Collapse
Division 11—Particular kinds of non-assessable income
Collapse
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
Collapse
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
Collapse
Division 12—Particular kinds of deductions
12-1 Effect of this Division
12-5 List of provisions about deductions
Collapse
Division 13—Tax offsets
13-1A Effect of this Division
13-1 List of tax offsets
Chapter 2—Liability rules of general application
Collapse
Part 2-1—Assessable income
Collapse
Division 15—Some items of assessable income
Collapse
Guide to Division 15
15-1 What this Division is about
Collapse
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
Collapse
Division 17—Effect of GST etc. on assessable income
Collapse
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
Collapse
Division 20—Amounts included to reverse the effect of past deductions
Collapse
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
Collapse
Guide to Subdivision 20-A
20-10 What this Subdivision is about
20-15 How to use this Subdivision
Collapse
What is an assessable recoupment?
20-20 Assessable recoupments
20-25 What is recoupment?
20-30 Tables of deductions for which recoupments are assessable
Collapse
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
Collapse
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
Collapse
Guide to Subdivision 20-B
20-100 What this Subdivision is about
20-105 Map of this Subdivision
Collapse
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
Collapse
The associate case
20-125 Disposal of a leased car for profit
Collapse
Successive leases
20-130 Successive leases
Collapse
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
Collapse
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
Collapse
Disposals of interests in a car: special rules apply
20-160 Disposal of an interest in a car
Collapse
Part 2-5—Rules about deductibility of particular kinds of amounts
Collapse
Division 25—Some amounts you can deduct
Collapse
Guide to Division 25
25-1 What this Division is about
Collapse
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
Collapse
Division 26—Some amounts you cannot deduct, or cannot deduct in full
Collapse
Guide to Division 26
26-1 What this Division is about
Collapse
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
Collapse
Division 27—Effect of input tax credits etc. on deductions
Collapse
Guide to Division 27
27-1 What this Division is about
Collapse
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
Collapse
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
Collapse
Division 28—Car expenses
Collapse
Guide to Division 28
28-1 What this Division is about
28-5 Map of this Division
Collapse
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
Collapse
Guide to Subdivision 28-B
28-14 What this Subdivision is about
28-15 Choosing among the 4 methods
Collapse
Operative provision
28-20 Rules governing choice of method
Collapse
Subdivision 28-C—The “cents per kilometre” method
28-25 How to calculate your deduction
28-30 Capital allowances
28-35 Substantiation
Collapse
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
Collapse
Subdivision 28-E—The “one-third of actual expenses” method
28-70 How to calculate your deduction
28-75 Eligibility
28-80 Substantiation
Collapse
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
Collapse
Guide to Subdivision 28-G
28-105 What this Subdivision is about
28-110 Steps for keeping a log book
Collapse
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
Collapse
Guide to Subdivision 28-H
28-135 What this Subdivision is about
Collapse
Operative provision
28-140 How to keep odometer records for a car for a period
Collapse
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
Collapse
Guide to Subdivision 28-J
28-160 What this Subdivision is about
Collapse
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
Collapse
Division 30—Gifts or contributions
Collapse
Guide to Division 30
30-1 What this Division is about
30-5 How to find your way around this Division
30-10 Index
Collapse
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
Collapse
Health
30-20 Health
Collapse
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
Collapse
Research
30-40 Research
Collapse
Welfare and rights
30-45 Welfare and rights
Collapse
Defence
30-50 Defence
Collapse
Environment
30-55 The environment
30-60 Gifts to a National Parks body or conservation body must satisfy certain requirements
Collapse
Industry, trade and design
30-65 Industry, trade and design
Collapse
The family
30-70 The family
30-75 Marriage education and family and child mediation and counselling organisations must be approved
Collapse
International affairs
30-80 International affairs
30-85 Declaration must be in force at the time you make the gift
Collapse
Sports and recreation
30-90 Sports and recreation
Collapse
Philanthropic trusts
30-95 Philanthropic trusts
Collapse
Cultural organisations
30-100 Cultural organisations
Collapse
Other recipients
30-105 Other recipients
Subdivision 30-BA—Endorsement of deductible gift recipients
Collapse
Guide to Subdivision 30-BA
30-115 What this Subdivision is about
Collapse
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
Collapse
Government entities treated like entities
30-180 How this Subdivision applies to government entities
Subdivision 30-C—Rules applying to particular gifts of property
Collapse
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
Collapse
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
Collapse
Joint ownership of property
30-225 Gift of property by joint owners
Subdivision 30-CA—Administrative requirements relating to ABNs
Collapse
Guide to Subdivision 30-CA
30-226 What this Subdivision is about
Collapse
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
Collapse
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
Collapse
Guide to Subdivision 30-DB
30-246 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 30-E
30-250 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 30-EA
30-286 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 30-F
30-290 What this Subdivision is about
Collapse
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
Collapse
Subdivision 30-G—Index to this Division
30-315 Index
30-320 Effect of this Subdivision
Collapse
Division 31—Conservation covenants
Collapse
Guide to Division 31
31-1 What this Division is about
Collapse
Operative provisions
31-5 Deduction for entering into conservation covenant
31-10 Requirements for fund, authority or institution
31-15 Valuations by the Commissioner
Collapse
Division 32—Entertainment expenses
Collapse
Guide to Division 32
32-1 What this Division is about
Collapse
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
Collapse
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
Collapse
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)
Collapse
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
Collapse
Subdivision 32-E—Anti-avoidance
32-75 Commissioner may treat you as having incurred entertainment expense
Collapse
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
Collapse
Division 34—Non-compulsory uniforms
Collapse
Guide to Division 34
34-1 What this Division is about
34-3 What you need to read
Collapse
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
Collapse
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?
Collapse
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
Collapse
Subdivision 34-D—Appeals from Industry Secretary’s decision
34-40 Review of decisions by the Administrative Appeals Tribunal
Collapse
Subdivision 34-E—The Register of Approved Occupational Clothing
34-45 Keeping of the Register
34-50 Changes to the Register
Collapse
Subdivision 34-F—Approved occupational clothing guidelines
34-55 Approved occupational clothing guidelines
Collapse
Subdivision 34-G—The Industry Secretary
34-60 Industry Secretary to give Commissioner information about entries
34-65 Delegation of powers by Industry Secretary
Collapse
Division 35—Deferral of losses from non-commercial business activities
Collapse
Guide to Division 35
35-1 What this Division is about
Collapse
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
Collapse
Division 36—Tax losses of earlier income years
Collapse
Guide to Division 36
36-1 What this Division is about
Collapse
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
Collapse
Guide to Subdivision 36-B
36-30 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 36-C
36-50 What this Subdivision is about
Collapse
Operative provision
36-55 Converting excess franking offsets into tax loss
Collapse
Volume 2
Chapter 2—Liability rules of general application
Collapse
Part 2-10—Capital allowances: rules about deductibility of capital expenditure
Collapse
Division 40—Capital allowances
Collapse
Guide to Division 40
40-1 What this Division is about
40-10 Simplified outline of this Division
Collapse
Subdivision 40-A—Objects of Division
40-15 Objects of Division
Subdivision 40-B—Core provisions
Collapse
Guide to Subdivision 40-B
40-20 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 40-C
40-170 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 40-D
40-280 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 40-E
40-420 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 40-F
40-510 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 40-G
40-625 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 40-H
40-725 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 40-I
40-825 What this Subdivision is about
Collapse
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
Collapse
Division 43—Deductions for capital works
Collapse
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
Collapse
Guide to Subdivision 43-A
43-5 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 43-B
43-60 What this Subdivision is about
43-65 Explanatory material
Collapse
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
Collapse
Guide to Subdivision 43-C
43-105 What this Subdivision is about
43-110 Explanatory material
Collapse
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
Collapse
Guide to Subdivision 43-D
43-135 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 43-E
43-155 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 43-F
43-200 What this Subdivision is about
43-205 Explanatory material
Collapse
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
Collapse
Guide to Subdivision 43-G
43-225 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 43-H
43-245 What this Subdivision is about
Collapse
Operative provisions
43-250 The amount of the balancing deduction
43-255 Amounts received or receivable
43-260 Apportioning amounts received for destruction
Collapse
Division 45—Disposal of leases and leased plant
Collapse
Guide to Division 45
45-1 What this Division is about
Collapse
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
Collapse
Part 2-15—Non-assessable income
Collapse
Division 50—Exempt entities
Collapse
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
Collapse
Guide to Subdivision 50-B
50-100 What this Subdivision is about
Collapse
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
Collapse
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
Collapse
Division 52—Certain pensions, benefits and allowances are exempt from income tax
Collapse
Guide to Division 52
52-1 What this Division is about
Subdivision 52-A—Exempt payments under the Social Security Act 1991
Collapse
Guide to Subdivision 52-A
52-5 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 52-B
52-60 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 52-C
52-100 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 52-CA
52-112 What this Subdivision is about
Collapse
Operative provisions
52-114 How much of a payment under the Military Rehabilitation and Compensation Act is exempt?
Collapse
Subdivision 52-D—Exempt payments made by the Commonwealth to reimburse certain expenditure
52-125 Private health insurance incentive payments are exempt
Collapse
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
Collapse
Subdivision 52-G—Exempt payments under the A New Tax System (Family Assistance) (Administration) Act 1999
52-150 Family assistance payments are exempt
Collapse
Division 53—Various exempt payments
Collapse
Guide to Division 53
53-1 What this Division is about
Collapse
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
Collapse
Division 54—Exemption for certain payments made under structured settlements and structured orders
Collapse
Guide to Division 54
54-1 What this Division is about
Subdivision 54-A—Definitions
Collapse
Operative provisions
54-5 Definitions
54-10 Meaning of structured settlement and structured order
Subdivision 54-B—Tax exemption for personal injury annuities
Collapse
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
Collapse
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
Collapse
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
Collapse
Division 55—Payments that are not exempt from income tax
Collapse
Guide to Division 55
55-1 What this Division is about
Collapse
Operative provisions
55-5 Occupational superannuation payments
55-10 Education entry payments
Collapse
Volume 3
Chapter 2—Liability rules of general application
Collapse
Part 2-15—Exempt income
Collapse
Division 58—Capital allowances for depreciating assets previously owned by an exempt entity
Collapse
Guide to Division 58
58-1 What this Division is about
Collapse
Subdivision 58-A—Application
58-5 Application of Division
58-10 When an asset is acquired in connection with the acquisition of a business
Collapse
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
Collapse
Division 59—Particular amounts of non-assessable non-exempt income
Collapse
Guide to Division 59
59-1 What this Division is about
Collapse
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
Collapse
Part 2-20—Tax offsets
Collapse
Division 61—Generally applicable tax offsets
Subdivision 61-G—Private health insurance offset complementary to Private Health Insurance Incentives Act 1997
Collapse
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
Collapse
Guide to Subdivision 61-H
61-330 What this Subdivision is about
Collapse
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)
Collapse
Guide to Subdivision 61-I
61-350 What this Subdivision is about
Collapse
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
Collapse
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
Collapse
Claiming the first child tax offset
61-405 How to claim a tax offset for a child
61-410 Claim is irrevocable
Collapse
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?
Collapse
Division 65—Tax offset carry forward rules
Collapse
Guide to Division 65
65-10 What this Division is about
Collapse
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
Collapse
Division 67—Refundable tax offset rules
Collapse
Guide to Division 67
67-10 What this Division is about
Collapse
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
Collapse
Part 2-25—Trading stock
Collapse
Division 70—Trading stock
Collapse
Guide to Division 70
70-1 What this Division is about
70-5 The 3 key features of tax accounting for trading stock
Collapse
Subdivision 70-A—What is trading stock
70-10 Meaning of trading stock
Collapse
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
Collapse
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
Collapse
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
Collapse
Guide to Subdivision 70-D
70-75 What this Subdivision is about
70-80 Why the rules in this Subdivision are necessary
Collapse
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
Collapse
Subdivision 70-E—Miscellaneous
70-120 Deducting capital costs of acquiring trees
Collapse
Part 2-42—Personal services income
Collapse
Division 84—Introduction
Collapse
Guide to Part 2-42
84-1 What this Part is about
Collapse
Operative provisions
84-5 Meaning of personal services income
84-10 This Part does not imply that individuals are employees
Collapse
Division 85—Deductions relating to personal services income
Collapse
Guide to Division 85
85-1 What this Division is about
Collapse
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
Collapse
Division 86—Alienation of personal services income
Collapse
Guide to Division 86
86-1 What this Division is about
86-5 A simple description of what this Division does
Collapse
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
Collapse
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
Collapse
Division 87—Personal services businesses
Collapse
Guide to Division 87
87-1 What this Division is about
87-5 Diagram showing the operation of this Division
Collapse
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
Collapse
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
Collapse
Part 3-1—Capital gains and losses: general topics
Collapse
Division 100—A Guide to capital gains and losses
Collapse
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
Collapse
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?
Collapse
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
Collapse
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?
Collapse
Keeping records for CGT purposes
100-60 Why keep records?
100-65 What records?
100-70 How long you need to keep records
Collapse
Division 102—Assessable income includes net capital gain
Collapse
Guide to Division 102
102-1 What this Division is about
102-3 Concessions in working out your net capital gain
Collapse
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
Collapse
Division 103—General rules
Collapse
Guide to Division 103
103-1 What this Division is about
Collapse
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
Collapse
Division 104—CGT events
Collapse
Guide to Division 104
104-1 What this Division is about
104-5 Summary of the CGT events
Collapse
Subdivision 104-A—Disposals
104-10 Disposal of a CGT asset: CGT event A1
Collapse
Subdivision 104-B—Use and enjoyment before title passes
104-15 Use and enjoyment before title passes: CGT event B1
Collapse
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
Collapse
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
Collapse
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
Collapse
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
Collapse
Subdivision 104-G—Shares
104-135 Capital payment for shares: CGT event G1
104-145 Liquidator declares shares worthless: CGT event G3
Collapse
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
Collapse
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
Collapse
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
Collapse
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
Collapse
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
Collapse
Division 106—Entity making the gain or loss
Collapse
Guide to Division 106
106-1 What this Division is about
Collapse
Subdivision 106-A—Partnerships
106-5 Partnerships
Collapse
Subdivision 106-B—Bankruptcy and liquidation
106-30 Effect of bankruptcy
106-35 Effect of liquidation
Collapse
Subdivision 106-C—Absolutely entitled beneficiaries
106-50 Absolutely entitled beneficiaries
Collapse
Subdivision 106-D—Security holders
106-60 Acts by security holders
Collapse
Division 108—CGT assets
Collapse
Guide to Division 108
108-1 What this Division is about
Collapse
Subdivision 108-A—What a CGT asset is
108-5 CGT assets
108-7 Interest in CGT assets as joint tenants
Collapse
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
Collapse
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
Collapse
Guide to Subdivision 108-D
108-50 What this Subdivision is about
Collapse
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
Collapse
Division 109—Acquisition of CGT assets
Collapse
Guide to Division 109
109-1 What this Division is about
Collapse
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
Collapse
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
Collapse
Division 110—Cost base and reduced cost base
Collapse
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
Collapse
Subdivision 110-A—Cost base
110-25 General rules about cost base
110-35 Incidental costs
Collapse
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
Collapse
Subdivision 110-B—Reduced cost base
110-55 General rules about reduced cost base
110-60 Reduced cost base for partnership assets
Collapse
Division 112—Modifications to cost base and reduced cost base
Collapse
Guide to Division 112
112-1 What this Division is about
112-5 Discussion of modifications
Collapse
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
Collapse
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
Collapse
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
Collapse
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
Collapse
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
Collapse
Division 115—Discount capital gains and trusts’ net capital gains
Collapse
Guide to Division 115
115-1 What this Division is about
Subdivision 115-A—Discount capital gains
Collapse
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
Collapse
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
Collapse
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
Collapse
Guide to Subdivision 115-C
115-200 What this Division is about
Collapse
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
Collapse
Guide to Subdivision 115-D
115-275 What this Subdivision is about
Collapse
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
Collapse
Division 116—Capital proceeds
Collapse
Guide to Division 116
116-1 What this Division is about
116-5 General rules
116-10 Modifications to general rules
Collapse
General rules
116-20 General rules about capital proceeds
Collapse
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
Collapse
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
Collapse
Division 118—Exemptions
Collapse
Guide to Division 118
118-1 What this Division is about
Subdivision 118-A—General exemptions
Collapse
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
Collapse
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
Collapse
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
Collapse
Guide to Subdivision 118-B
118-100 What this Subdivision is about
118-105 Map of this Subdivision
Collapse
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
Collapse
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
Collapse
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
Collapse
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
Collapse
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
Collapse
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
Collapse
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
Collapse
Guide to Subdivision 118-F
118-400 What this Subdivision is about
Collapse
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
Collapse
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
Collapse
Subdivision 118-H—Demutualisation of Tower Corporation
118-550 Demutualisation of Tower Corporation
Collapse
Division 121—Record keeping
Collapse
Guide to Division 121
121-10 What this Division is about
Collapse
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
Collapse
Part 3-3—Capital gains and losses: special topics
Collapse
Division 122—Roll-over for the disposal of assets to, or the creation of assets in, a wholly-owned company
Collapse
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
Collapse
Guide to Subdivision 122-A
122-5 What this Subdivision is about
Collapse
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
Collapse
Replacement-asset roll-over if you dispose of a CGT asset
122-40 Disposal of a CGT asset
Collapse
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
Collapse
Replacement-asset roll-over for a creation case
122-65 Creation of asset
Collapse
Same-asset roll-over consequences for the company (disposal case)
122-70 Consequences for the company (disposal case)
Collapse
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
Collapse
Guide to Subdivision 122-B
122-120 What this Subdivision is about
Collapse
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
Collapse
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
Collapse
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
Collapse
Replacement-asset roll-over for a creation case
122-195 Creation of asset
Collapse
Same-asset roll-over consequences for the company (disposal case)
122-200 Consequences for the company (disposal case)
Collapse
Same-asset roll-over consequences for the company (creation case)
122-205 Consequences for the company (creation case)
Collapse
Volume 4
Chapter 3—Specialist liability rules
Collapse
Part 3-3—Capital gains and losses: special topics
Collapse
Division 124—Replacement-asset roll-overs
Collapse
Guide to Division 124
124-1 What this Division is about
124-5 How to find your way around this Division
Collapse
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
Collapse
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
Collapse
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
Collapse
Subdivision 124-C—Statutory licences
124-140 Renewal or extension of a statutory licence
Collapse
Subdivision 124-D—Strata title conversion
124-190 Strata title conversion
Collapse
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
Collapse
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
Collapse
Guide to Subdivision 124-G
124-350 What this Subdivision is about
124-355 Summary of rules
Collapse
Disposal case
124-360 Disposal of shares in one company for shares in another one
124-365 Other requirements to be satisfied
Collapse
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
Collapse
Rules applying to both cases
124-380 Requirements to be satisfied in both cases
Collapse
Consequences for the interposed company unless consolidated group continues
124-385 Consequences for the interposed company
Collapse
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
Collapse
Guide to Subdivision 124-H
124-435 What this Subdivision is about
124-440 Summary of rules
Collapse
Disposal case
124-445 Disposal of units in a unit trust for shares in a company
124-450 Other requirements to be satisfied
Collapse
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
Collapse
Rules applying to both cases
124-465 Requirements to be satisfied in both cases
Collapse
Consequences for the company
124-470 Consequences for the company
Collapse
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
Collapse
Guide to Subdivision 124-J
124-570 What this Subdivision is about
Collapse
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
Collapse
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
Collapse
Guide to Subdivision 124-L
124-700 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 124-M
124-775 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 124-N
124-850 What this Subdivision is about
Collapse
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
Collapse
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
Collapse
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)
Collapse
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)
Collapse
Division 125—Demerger relief
Collapse
Guide to Division 125
125-1 What this Division is about
Collapse
Subdivision 125-A—Object of this Division
125-5 Object of this Division
Subdivision 125-B—Consequences for owners of interests
Collapse
Guide to Subdivision 125-B
125-50 Guide to Subdivision 125-B
Collapse
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
Collapse
Guide to Subdivision 125-C
125-150 Guide to Subdivision 125-C
Collapse
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
Collapse
Guide to Subdivision 125-D
125-225 Guide to Subdivision 125-D
Collapse
Operative provisions
125-230 Application of Division to corporate unit trusts and public trading trusts
Collapse
Division 126—Same-asset roll-overs
Collapse
Guide to Division 126
126-1 What this Division is about
Collapse
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
Collapse
Guide to Subdivision 126-B
126-40 What this Subdivision is about
Collapse
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
Collapse
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
Collapse
Guide to Subdivision 126-D
126-185 What this Subdivision is about
Collapse
Operative provisions
126-190 When there is a roll-over
126-195 Consequences of roll-over
Collapse
Subdivision 126-D—Small superannuation funds
126-140 CGT event involving small superannuation funds
Collapse
Division 128—Effect of death
Collapse
Guide to Division 128
128-1 What this Division is about
Collapse
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.
Collapse
Special rules for joint tenants
128-50 Joint tenants
Collapse
Division 130—Investments
Collapse
Guide to Division 130
130-1 What this Division is about
Subdivision 130-A—Bonus shares and units
Collapse
Guide to Subdivision 130-A
130-15 Acquisition time and cost base of bonus equities
Collapse
Operative provisions
130-20 Issue of bonus shares or units
Collapse
Subdivision 130-B—Rights
130-40 Exercise of rights
130-45 Timing rules
130-50 Application to options
Collapse
Subdivision 130-C—Convertible interests
130-60 Shares or units acquired by converting a convertible interest
Collapse
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
Collapse
Subdivision 130-E—Exchangeable interests
130-100 Exchangeable interest
130-105 Shares acquired in exchange for the disposal or redemption of an exchangeable interest
Collapse
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
Collapse
Division 134—Options
134-1 Exercise of options
Collapse
Division 136—Non-residents
Collapse
Guide to Division 136
136-1 What this Division is about
Collapse
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
Collapse
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
Collapse
Division 149—When an asset stops being a pre-CGT asset
Collapse
Subdivision 149-A—Key concepts
149-10 What is a pre-CGT asset?
149-15 Majority underlying interests in a CGT asset
Collapse
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
Collapse
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
Collapse
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
Collapse
Division 152—Small business relief
Collapse
Guide to Division 152
152-1 What this Division is about
Subdivision 152-A—Basic conditions for relief under this Division
Collapse
Guide to Subdivision 152-A
152-5 What this Subdivision is about
Collapse
Basic conditions for relief
152-10 Basic conditions for relief
152-12 Special conditions for CGT event D1
Collapse
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
Collapse
Active asset test
152-35 Active asset test
152-40 Meaning of active asset
152-45 Continuing time periods for involuntary disposals
Collapse
Controlling individual test
152-50 Controlling individual test
152-55 Meaning of controlling individual
Collapse
CGT concession stakeholder
152-60 Meaning of CGT concession stakeholder
Subdivision 152-B—Small business 15-year exemption
Collapse
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
Collapse
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
Collapse
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
Collapse
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
Collapse
Volume 5
Chapter 3—Specialist liability rules
Collapse
Part 3-5—Corporate taxpayers and corporate distributions
Collapse
Division 164—Non-share capital accounts for companies
Collapse
Guide to Division 164
164-1 What this Division is about
Collapse
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
Collapse
Division 165—Income tax consequences of changing ownership or control of a company
Collapse
Guide to Division 165
165-1 What this Division is about
Subdivision 165-A—Deducting tax losses of earlier income years
Collapse
Guide to Subdivision 165-A
165-5 What this Subdivision is about
Collapse
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
Collapse
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
Collapse
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
Collapse
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
Collapse
Working out the company’s tax loss
165-70 How to calculate the company’s tax loss for the income year
Collapse
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
Collapse
Guide to Subdivision 165-CA
165-93 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 165-CB
165-99 What this Subdivision is about
Collapse
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
Collapse
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
Collapse
Guide to Subdivision 165-CC
165-115 What this Subdivision is about
165-115AA Special rules to save compliance costs
Collapse
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
Collapse
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
Collapse
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
Collapse
Guide to Subdivision 165-C
165-117 What this Subdivision is about
Collapse
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
Collapse
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
Collapse
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
Collapse
Subdivision 165-E—The same business test
165-210 The test
Collapse
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
Collapse
Division 166—Income tax consequences of changing ownership or control of a listed public company
Collapse
Guide to Division 166
166-1 What this Division is about
Collapse
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
Collapse
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
Collapse
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
Collapse
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
Collapse
Guide to Subdivision 166-D
166-140 What this Subdivision is about
Collapse
Substantial continuity of ownership
166-145 Substantial continuity of ownership
Collapse
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
Collapse
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%
Collapse
Guide to Subdivision 166-F
166-215 What this Subdivision is about
Collapse
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
Collapse
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
Collapse
Guide to this Subdivision
166-260 What this Subdivision is about
Collapse
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
Collapse
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
Collapse
Guide to Subdivision 170-A
170-1 What this Subdivision is about
170-5 Basic principles for transferring tax losses
Collapse
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
Collapse
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
Collapse
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
Collapse
Guide to Subdivision 170-B
170-101 What this Subdivision is about
170-105 Basic principles for transferring a net capital loss
Collapse
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
Collapse
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
Collapse
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
Collapse
Guide to Subdivision 170-C
170-201 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 170-D
170-250 What this Subdivision is about
Collapse
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
Collapse
Division 175—Use of a company’s tax losses or deductions to avoid income tax
Collapse
Guide to Division 175
175-1 What this Division is about
Collapse
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
Collapse
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
Collapse
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
Collapse
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
Collapse
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
Collapse
Subdivision 175-D—Shareholding interest in the company
175-95 When a person has a shareholding interest in the company
Collapse
Division 180—Information about family trusts with interests in companies
Collapse
Guide to Division 180
180-1 What this Division is about
Collapse
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
Collapse
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
Collapse
Division 195—Special types of company
Subdivision 195-A—Pooled development funds (PDFs)
Collapse
Guide to Subdivision 195-A
195-1 What this Subdivision is about
Collapse
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
Collapse
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
Collapse
Guide to Subdivision 195-B
195-60 What this Subdivision is about
Collapse
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
Collapse
Part 3-6—The imputation system
Collapse
Division 200—Guide to Part 3-6
Collapse
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
Collapse
Division 201—Objects and application of Part 3-6
201-1 Objects
201-5 Application of this Part
Collapse
Division 202—Franking a distribution
Subdivision 202-A—Franking a distribution
Collapse
Guide to Subdivision 202-A
202-1 What this Subdivision is about
Collapse
Operative provisions
202-5 Franking a distribution
Subdivision 202-B—Who can frank a distribution?
Collapse
Guide to Subdivision 202-B
202-10 What this Subdivision is about
Collapse
Operative provisions
202-15 Franking entities
202-20 Residency requirement when making a distribution
Subdivision 202-C—Which distributions can be franked?
Collapse
Guide to Subdivision 202-C
202-25 What this Subdivision is about
202-30 Frankable distributions
Collapse
Operative provisions
202-35 Object
202-40 Frankable distributions
202-45 Unfrankable distributions
Subdivision 202-D—Amount of the franking credit on a distribution
Collapse
Guide to Subdivision 202-D
202-50 What this Subdivision is about
202-55 What is the maximum franking credit for a frankable distribution?
Collapse
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
Collapse
Guide to Subdivision 202-E
202-70 What this Subdivision is about
Collapse
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
Collapse
Division 203—Benchmark rule
Collapse
Guide to Division 203
203-1 What this Division is about
203-5 Benchmark rule
203-10 Benchmark franking percentage
Collapse
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
Collapse
Division 204—Anti-streaming rules
Collapse
Subdivision 204-A—Objects and application
204-1 Objects
204-5 Application
Subdivision 204-B—Linked distributions
Collapse
Guide to Subdivision 204-B
204-10 What this Subdivision is about
Collapse
Operative provisions
204-15 Linked distributions
Subdivision 204-C—Substituting tax-exempt bonus share for franked distributions
Collapse
Guide to Subdivision 204-C
204-20 What this Subdivision is about
Collapse
Operative provisions
204-25 Substituting tax-exempt bonus shares for franked distributions
Subdivision 204-D—Streaming distributions
Collapse
Guide to Subdivision 204-D
204-26 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 204-E
204-65 What this Subdivision is about
Collapse
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
Collapse
Division 205—Franking accounts, franking deficit tax liabilities and the related tax offset
Collapse
Guide to Division 205
205-1 What this Division is about
205-5 Franking accounts, franking deficit tax liabilities and the related tax offset
Collapse
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
Collapse
Division 207—Effect of receiving a franked distribution
Collapse
Guide to Division 207
207-5 Overview
Subdivision 207-A—Effect of receiving a franked distribution generally
Collapse
Guide to Subdivision 207-A
207-10 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 207-B
207-25 What this Subdivision is about
Collapse
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
Collapse
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
Collapse
Guide to Subdivision 207-C
207-60 What this Subdivision is about
207-65 Satisfying the residency requirement
Collapse
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
Collapse
Guide to Subdivision 207-D
207-80 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 207-E
207-105 What this Subdivision is about
Collapse
Operative provisions
207-110 Exceptions to sections 207-90 and 207-95
Collapse
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
Collapse
Guide to Subdivision 207-F
207-140 What this Subdivision is about
Collapse
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
Collapse
Division 208—Exempting entities and former exempting entities
Collapse
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
Collapse
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
Collapse
Guide to Subdivision 208-B
208-55 What this Subdivision is about
Collapse
Operative provisions
208-60 Franking with an exempting credit
Subdivision 208-C—Amount of the exempting credit on a distribution
Collapse
Guide to Subdivision 208-C
208-65 What this Subdivision is about
Collapse
Operative provisions
208-70 Amount of the exempting credit on a distribution
Subdivision 208-D—Distribution statements
Collapse
Guide to Subdivision 208-D
208-75 Guide to Subdivision 208-D
Collapse
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
Collapse
Guide to Subdivision 208-E
208-85 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 208-F
208-105 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 208-G
208-190 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 208-H
208-220 What this Subdivision is about
Collapse
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
Collapse
Division 210—Venture capital franking
Collapse
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
Collapse
Guide to Subdivision 210-A
210-25 What this Subdivision is about
Collapse
Operative provisions
210-30 Franking a distribution with a venture capital credit
Subdivision 210-B—Participating PDFs
Collapse
Guide to Subdivision 210-B
210-35 What this Subdivision is about
Collapse
Operative provisions
210-40 What is a participating PDF
Subdivision 210-C—Distributions that are frankable with a venture capital credit
Collapse
Guide to Subdivision 210-C
210-45 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 210-D
210-55 What this Subdivision is about
Collapse
Operative provisions
210-60 Amount of the venture capital credit on a distribution
Subdivision 210-E—Distribution statements
Collapse
Guide to Subdivision 210-E
210-65 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 210-F
210-75 What this Subdivision is about
Collapse
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
Collapse
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
Collapse
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
Collapse
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
Collapse
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
Collapse
Division 214—Administering the imputation system
Collapse
Guide to Division 214
214-1 Purpose of the system
214-5 Key features
Subdivision 214-A—Franking returns
Collapse
Guide to Subdivision 214-A
214-10 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 214-B
214-55 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 214-C
214-90 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 214-D
214-145 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 214-E
214-170 What this Subdivision is about
Collapse
Operative provisions
214-175 Record keeping
214-180 Power of Commissioner to obtain information
214-185 Tax agents
Collapse
Division 215—Consequences of the debt/equity rules
Collapse
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
Collapse
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
Collapse
Division 216—Cum dividend sales and securities lending arrangements
Collapse
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
Collapse
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
Collapse
Division 219—Imputation for life insurance companies
Collapse
Guide to Division 219
219-1 What this Division is about
Collapse
Subdivision 219-A—Application of imputation rules to life insurance companies
219-10 Application of imputation rules to life insurance companies
Collapse
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
Collapse
Division 220—Imputation for NZ resident companies and related companies
Collapse
Guide to Division 220
220-1 What this Division is about
Collapse
Subdivision 220-A—Objects of this Division
220-15 Objects
220-20 What is an NZ resident?
Collapse
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
Collapse
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
Collapse
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
Collapse
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
Collapse
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
Collapse
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
Collapse
NZ franking companies’ exempting accounts
220-605 Effect on exempting account if NZ franking choice ceases to be in force
Collapse
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
Collapse
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.
Collapse
Division 218—Application of imputation rules to co-operative companies
218-5 Application of imputation rules to co-operative companies
Collapse
Volume 6
Chapter 3—Specialist liability rules
Collapse
Part 3-10—Financial transactions
Collapse
Division 240—Arrangements treated as a sale and loan
Collapse
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
Collapse
Operative provisions
240-10 Application of this Division
240-15 Scope of Division
Subdivision 240-B—The notional sale and notional loan
Collapse
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
Collapse
Guide to Subdivision 240-C
240-30 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 240-D
240-45 What this Subdivision is about
Collapse
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
Collapse
Operative provisions
240-60 Notional interest
240-65 Arrangement payments
240-70 Arrangement payment periods
Subdivision 240-F—The end of the arrangement
Collapse
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
Collapse
Guide to Subdivision 240-G
240-100 What this Subdivision is about
Collapse
Operative provisions
240-105 Adjustments for notional seller
240-110 Adjustments for notional buyer
Collapse
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
Collapse
Operative provisions
240-115 Another person, or no person taken to own property in certain cases
Collapse
Division 243—Limited recourse debt
Collapse
Guide to Division 243
243-10 What this Division is about
Subdivision 243-A—Circumstances in which Division operates
Collapse
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
Collapse
Operative provisions
243-35 Working out the excessive deductions
Subdivision 243-C—Amounts included in assessable income and deductions
Collapse
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
Collapse
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
Collapse
Part 3-35—Insurance business
Collapse
Division 320—Life insurance companies
Collapse
Guide to Division 320
320-1 What this Division is about
Operative provisions
Collapse
Subdivision 320-A—Preliminary
320-5 Object of Division
Subdivision 320-B—What is included in a life insurance company’s assessable income
Collapse
Guide to Subdivision 320-B
320-10 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 320-C
320-50 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 320-D
320-130 What this Subdivision is about
320-131 Overview of Subdivision
Collapse
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
Collapse
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
Collapse
Guide to Subdivision 320-F
320-165 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 320-H
320-220 What this Subdivision is about
Collapse
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
Collapse
Division 322—HIH rescue package
Collapse
Guide to Division 322
322-1 What this Division is about
Collapse
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
Collapse
Part 3-45—Rules for particular industries and occupations
Collapse
Division 328—STS taxpayers
Collapse
Subdivision 328-A—Guide to Division 328
328-5 What this Division is about
328-10 Map of this Division
Collapse
Subdivision 328-B—Objects of this Division
328-50 Objects of this Division
Subdivision 328-C—Accounting method for STS taxpayers
Collapse
Guide to Subdivision 328-C
328-100 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 328-D
328-170 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 328-E
328-280 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 328-F
328-360 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 328-G
328-430 What this Subdivision is about
Collapse
Operative provisions
328-435 Entering the STS
328-440 Leaving the STS
Collapse
Division 375—Australian films
Subdivision 375-G—Film losses
Collapse
Guide to Subdivision 375-G
375-800 What this Subdivision is about
Collapse
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
Collapse
Subdivision 375-H—Deductions for shares in a film licensed investment company
375-850 What this Subdivision is about
Collapse
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
Collapse
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
Collapse
Division 376—Films generally (tax offset for Australian production expenditure)
Collapse
Subdivision 376-A—Guide to Division 376
376-2 Structure of this Division
Collapse
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
Collapse
Production expenditure
376-25 Production expenditure—general test
376-30 Production expenditure—special qualifying Australian production expenditure
376-35 Production expenditure—specific exclusions
Collapse
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
Collapse
Expenditure generally
376-65 Expenditure to be worked out on an arm’s length basis
376-70 Expenditure incurred by prior production companies
Collapse
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
Collapse
Subdivision 376-E—Review of operation of this Division
376-110 Review of operation of this Division
Collapse
Division 385—Primary production
Collapse
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
Collapse
Guide to Subdivision 385-E
385-90 What this Subdivision is about
385-95 Basic principles for elections under this Subdivision
Collapse
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
Collapse
Subdivision 385-F—Insurance for loss of live stock or trees
385-130 Insurance for loss of live stock or trees
Collapse
Subdivision 385-G—Double wool clips
385-135 Election to defer including profit on second wool clip
Collapse
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
Collapse
Division 392—Long-term averaging of primary producers’ tax liability
Collapse
Guide to Division 392
392-1 What this Division is about
392-5 Overview of averaging process
Collapse
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?
Collapse
Guide to Subdivision 392-B
392-30 What this Subdivision is about
Collapse
Tax offset or extra income tax
392-35 Will you get a tax offset or have to pay extra income tax?
Collapse
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?
Collapse
Guide to Subdivision 392-C
392-60 What this Subdivision is about
392-65 What your averaging adjustment reflects
Collapse
Your gross averaging amount
392-70 Working out your gross averaging amount
Collapse
Your averaging adjustment
392-75 Working out your averaging adjustment
Collapse
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
Collapse
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
Collapse
Division 396—Land transport facilities borrowings
Collapse
Guide to Division 396
396-5 What this Division is about
Subdivision 396-A—Key operative provisions
Collapse
Guide to Subdivision 396-A
396-10 What this Subdivision is about
Collapse
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
Collapse
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
Collapse
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
Collapse
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
Collapse
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
Collapse
Division 405—Above-average special professional income of authors, inventors, performing artists, production associates and sportspersons
Collapse
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
Collapse
Subdivision 405-A—Above-average special professional income
405-15 When do you have above-average special professional income?
Collapse
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
Collapse
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
Collapse
Volume 7
Chapter 3—Specialist liability rules
Collapse
Part 3-90—Consolidated groups
Collapse
Division 700—Guide and objects
Collapse
Guide
700-1 What this Part is about
700-5 Overview of this Part
Collapse
Objects
700-10 Objects of this Part
Collapse
Division 701—Core rules
Collapse
Common rule
701-1 Single entity rule
Collapse
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
Collapse
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
Collapse
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
Collapse
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
Collapse
Division 703—Consolidated groups and their members
Collapse
Guide to Division 703
703-1 What this Division is about
Collapse
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
Collapse
Choice to consolidate a consolidatable group
703-50 Choice to consolidate a consolidatable group
Collapse
Consolidated group created when MEC group ceases to exist
703-55 Creating consolidated groups from certain MEC groups
Collapse
Notice of events affecting consolidated group
703-60 Notice of events affecting consolidated group
Collapse
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
Collapse
Division 705—Tax cost setting amount for assets where entities become subsidiary members of consolidated groups
Collapse
Guide to Division 705
705-1 What this Division is about
Subdivision 705-A—Basic case: a single entity joining an existing consolidated group
Collapse
Guide to Subdivision 705-A
705-5 What this Subdivision is about
Collapse
Application and object
705-10 Application and object of this Subdivision
705-15 Cases where this Subdivision does not have effect
Collapse
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
Collapse
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
Collapse
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
Collapse
Guide to Subdivision 705-B
705-130 What this Subdivision is about
Collapse
Application and object
705-135 Application and object of this Subdivision
Collapse
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
Collapse
Guide to Subdivision 705-C
705-170 What this Subdivision is about
Collapse
Application and object
705-175 Application and object of this Subdivision
Collapse
Modified application of Division 701 in relation to acquired group etc.
705-180 Modifications of Division 701
Collapse
Modified application of Subdivision 705-A in relation to acquiring group
705-185 Subdivision 705-A has effect with modifications
Collapse
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
Collapse
Guide to Subdivision 705-D
705-210 What this Subdivision is about
Collapse
Application and object
705-215 Application and object of this Subdivision
Collapse
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.
Collapse
Guide to Subdivision 705-E
705-300 What this Subdivision is about
Collapse
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
Collapse
Division 707—Losses for head companies when entities become members etc.
Subdivision 707-A—Transfer of previously unutilised losses to head company
Collapse
Guide to Subdivision 707-A
707-100 What this Subdivision is about
707-105 Who can utilise the loss?
Collapse
Objects
707-110 Objects of this Subdivision
Collapse
Application
707-115 What losses this Subdivision applies to
Collapse
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
Collapse
Effect of transfer of loss
707-140 Effect of transfer of loss
Collapse
Cancelling the transfer of the loss
707-145 Cancelling the transfer of the loss
Collapse
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?
Collapse
Guide to Subdivision 707-B
707-200 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 707-C
707-300 What this Subdivision is about
Collapse
Object
707-305 Object of this Subdivision
Collapse
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
Collapse
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
Collapse
Division 709—Other rules applying when entities become subsidiary members etc.
Subdivision 709-A—Franking accounts
Collapse
Guide to Subdivision 709-A
709-50 What this Subdivision is about
Collapse
Object
709-55 Object of this Subdivision
Collapse
Treatment of franking accounts at joining time
709-60 Nil balance franking account for joining entity
Collapse
Treatment of subsidiary member’s franking account
709-65 Subsidiary member’s franking account does not operate
Collapse
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
Collapse
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
Collapse
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
Collapse
Guide to Subdivision 709-B
709-150 What this Subdivision is about
Collapse
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
Collapse
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
Collapse
Division 711—Tax cost setting amount for membership interests where entities cease to be subsidiary members of consolidated groups
Collapse
Guide to Division 711
711-1 What this Division is about
Collapse
Application and object of this Division
711-5 Application and object of this Division
Collapse
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
Collapse
Division 713—Rules for particular kinds of entities
Subdivision 713-A—Trusts
Collapse
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
Collapse
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
Collapse
Guide to Subdivision 713-C
713-120 What this Subdivision is about
Collapse
Object of this Subdivision
713-125 Object of this Subdivision
Collapse
Choice to form a consolidated group
713-130 Choosing to form a consolidated group
Collapse
Effects of choice
713-135 Effects of choice
713-140 Modifications of the applied law
Subdivision 713-E—Partnerships
Collapse
Guide to Subdivision 713-E
713-200 What this Subdivision is about
Collapse
Objects
713-205 Objects of this Subdivision
Collapse
Partnership cost setting interests etc.
713-210 Partnership cost setting interests
713-215 Terminating value for partnership cost setting interest
Collapse
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
Collapse
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
Collapse
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
Collapse
Guide to Subdivision 713-L
713-500 What this Subdivision is about
Collapse
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
Collapse
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
Collapse
Object
715-15 Object of this Subdivision
Collapse
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
Collapse
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
Collapse
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
Collapse
How Subdivision 165-CC applies to consolidated groups
715-75 Extension of single entity rule and entry history rule
Collapse
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
Collapse
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
Collapse
Effect of first and second choices on various kinds of assets
715-145 Effect of choice on adjustable value of leaving asset
Collapse
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
Collapse
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
Collapse
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
Collapse
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
Collapse
How Subdivision 165-CD applies to leaving entity that is a trust
715-270 Subdivision 165-CD applies
Collapse
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
Collapse
Key terminology
715-310 What is a 170-D deferred loss, and when it revives
Collapse
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
Collapse
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
Collapse
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
Collapse
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
Collapse
Division 716—Miscellaneous special rules
Subdivision 716-A—Assessable income and deductions spread over several membership or non-membership periods
Collapse
Guide to Subdivision 716-A
716-1 What this Division is about
Collapse
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
Collapse
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
Collapse
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
Collapse
Division 717—International tax rules
Subdivision 717-A—Foreign tax credits
Collapse
Guide to Subdivision 717-A
717-1 What this Subdivision is about
Collapse
Objects
717-5 Objects of this Subdivision
Collapse
Foreign tax on amounts in head company’s assessable income
717-10 Head company taken to be liable for subsidiary member’s foreign tax
Collapse
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
Collapse
Guide to Subdivision 717-D
717-200 What this Subdivision is about
Collapse
Object
717-205 Object of this Subdivision
Collapse
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
Collapse
Guide to Subdivision 717-E
717-235 What this Subdivision is about
Collapse
Object
717-240 Object of this Subdivision
Collapse
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
Collapse
Guide to Subdivision 717-F
717-270 What this Subdivision is about
Collapse
Application and object
717-275 Application
717-280 Object of this Subdivision
Collapse
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
Collapse
Guide to Subdivision 717-G
717-295 What this Subdivision is about
Collapse
Application and object
717-300 Application
717-305 Object of this Subdivision
Collapse
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
Collapse
Guide to Subdivision 717-J
717-500 What this Subdivision is about
Collapse
Object
717-505 Object of this Subdivision
Collapse
Treatment of foreign dividend accounts around joining time
717-510 No FDA surplus for joining company
Collapse
Single entity rule for foreign dividend accounts
717-515 Single entity rule for FDA credits and FDA debits
Collapse
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
Collapse
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
Collapse
Division 719—MEC groups
Collapse
Subdivision 719-A—Modified application of Part 3-90 to MEC groups
719-2 Modified application of Part 3-90 to MEC groups
Collapse
Subdivision 719-B—MEC groups and their members
719-4 What this Subdivision is about
Collapse
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
Collapse
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
Collapse
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
Collapse
Head company
719-75 Head company
Collapse
Notice of events affecting group
719-80 Notice of events affecting MEC group
Collapse
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
Collapse
Guide to Subdivision 719-C
719-150 What this Subdivision is about
Collapse
Application and object
719-155 Object of this Subdivision
Collapse
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
Collapse
Guide to Subdivision 719-F
719-250 What this Subdivision is about
Collapse
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
Collapse
Same business test and change of head company
719-285 Same business test and change of head company
Collapse
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
Collapse
Subdivision 719-H—Imputation issues
719-425 Guide to Subdivision 719-H
Collapse
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
Collapse
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
Collapse
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
Collapse
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
Collapse
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
Collapse
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
Collapse
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
Collapse
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
Collapse
Division 721—Liability for payment of tax where head company fails to pay on time
Collapse
Guide to Division 721
721-1 What this Division is about
Collapse
Object
721-5 Object of this Division
Collapse
When this Division operates
721-10 When this Division operates
Collapse
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
Collapse
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
Collapse
Part 3-95—Value shifting
Collapse
Division 723—Direct value shifting by creating right over non-depreciating asset
Collapse
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
Collapse
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
Collapse
Division 725—Direct value shifting affecting interests in companies and trusts
Collapse
Guide to Division 725
725-1 What this Division is about
Collapse
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
Collapse
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
Collapse
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
Collapse
Special cases
725-220 Neutral direct value shifts
725-225 Issue of bonus shares or units
725-230 Off-market buy-backs
Collapse
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
Collapse
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
Collapse
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)
Collapse
Division 727—Indirect value shifting affecting interests in companies and trusts, and arising from non-arm’s length dealings
Collapse
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
Collapse
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
Collapse
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
Collapse
Guide to Subdivision 727-C
727-200 What this Subdivision is about
Collapse
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
Collapse
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
Collapse
Anti-overlap provisions
727-250 Distribution by an entity to a member or beneficiary
Collapse
Miscellaneous
727-260 Shift down a wholly-owned chain of entities
Collapse
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
Collapse
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
Collapse
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
Collapse
Guide to Subdivision 727-F
727-450 What this Subdivision is about
Collapse
Operative provisions
727-455 Consequences of the indirect value shift
Collapse
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
Collapse
Affected owners
727-530 Who are the affected owners
Collapse
Choices about method to be used
727-550 Choosing the adjustable value method
727-555 Giving other affected owners information about the choice
Collapse
Subdivision 727-G—The realisation time method
727-600 What this Subdivision is about
Collapse
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
Collapse
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
Collapse
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
Collapse
Guide to Subdivision 727-H
727-750 What this Subdivision is about
727-755 Consequences of indirect value shift
Collapse
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
Collapse
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
Collapse
Consequences of the method for various kinds of assets
727-830 CGT assets
727-835 Trading stock
727-840 Revenue assets
Collapse
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
Collapse
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
Collapse
Volume 8
Chapter 4—International aspects of income tax
Collapse
Part 4-5—General
Collapse
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
Collapse
Guide to Subdivision 768-G
768-500 What this Subdivision is about
Collapse
Operative provisions
768-505 Reducing a capital gain or loss from certain CGT events in relation to non-portfolio interests
Collapse
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
Collapse
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
Collapse
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
Collapse
Division 775—Foreign currency gains and losses
Collapse
Guide to Division 775
775-5 What this Division is about
Collapse
Subdivision 775-A—Objects of this Division
775-10 Objects of this Division
Collapse
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
Collapse
Guide to Subdivision 775-C
775-180 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 775-D
775-225 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 775-E
775-265 What this Subdivision is about
Collapse
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
Collapse
Division 820—Thin capitalisation rules
Collapse
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
Collapse
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)
Collapse
Guide to Subdivision 820-B
820-65 What this Subdivision is about
Collapse
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)
Collapse
Guide to Subdivision 820-C
820-180 What this Subdivision is about
Collapse
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)
Collapse
Guide to Subdivision 820-D
820-295 What this Subdivision is about
Collapse
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)
Collapse
Guide to Subdivision 820-E
820-390 What this Subdivision is about
Collapse
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
Collapse
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
Collapse
Guide to Subdivision 820-F
820-450 What this Subdivision is about
Collapse
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
Collapse
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
Collapse
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
Collapse
Guide to Subdivision 820-FA
820-579 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 820-FB
820-595 What this Subdivision is about
Collapse
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
Collapse
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
Collapse
Guide to Subdivision 820-G
820-625 What this Subdivision is about
Collapse
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
Collapse
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
Collapse
Guide to Subdivision 820-H
820-740 What this Subdivision is about
Collapse
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?
Collapse
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?
Collapse
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
Collapse
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
Collapse
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
Collapse
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
Collapse
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
Collapse
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
Collapse
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
Collapse
Guide to Subdivision 820-L
820-950 What this Subdivision is about
Collapse
Records about Australian permanent establishments
820-960 Records about Australian permanent establishments
820-965 Review of Commissioner’s decision
Collapse
Records about arm’s length amounts
820-980 Records about arm’s length debt amount and arm’s length capital amount
Collapse
Records about asset revaluations
820-985 Methodology of revaluation and independence of valuer
Collapse
Offences committed by certain entities
820-990 Offences—treatment of partnerships
820-995 Offences—treatment of unincorporated companies
Collapse
Division 830—Foreign hybrids
Collapse
Guide to Division 830
830-1 What this Division is about
Collapse
Subdivision 830-A—Meaning of “foreign hybrid”
830-5 Foreign hybrid
830-10 Foreign hybrid limited partnership
830-15 Foreign hybrid company
Collapse
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
Collapse
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
Collapse
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
Collapse
Part 5-30—Record-keeping and other obligations
Collapse
Division 900—Substantiation rules
Collapse
Guide to Division 900
900-1 What this Division is about
Collapse
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
Collapse
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
Collapse
Subdivision 900-C—Substantiating car expenses
900-70 Getting written evidence
900-75 Retaining the written evidence and odometer records
Collapse
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
Collapse
Guide to Subdivision 900-E
900-100 What this Subdivision is about
Collapse
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
Collapse
Guide to Subdivision 900-F
900-140 What this Subdivision is about
900-145 Purpose of a travel record
Collapse
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
Collapse
Guide to Subdivision 900-G
900-160 What this Subdivision is about
900-165 The retention period
Collapse
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
Collapse
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
Collapse
Guide to Subdivision 900-I
900-210 What this Subdivision is about
Collapse
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
Collapse
Part 5-35—Miscellaneous
Collapse
Division 905—Offences
905-5 Application of the Criminal Code
Collapse
Division 909—Regulations
909-1 Regulations
Chapter 6—The Dictionary
Collapse
Part 6-1—Concepts and topics
Collapse
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
Collapse
Division 960—General
Collapse
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
Collapse
Guide to Subdivision 960-D
960-56 What this Subdivision is about
Collapse
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
Collapse
Subdivision 960-E—Entities
960-100 Entities
Collapse
Subdivision 960-F—Distribution by corporate tax entities
960-115 Meaning of corporate tax entity
960-120 Meaning of distribution
Collapse
Subdivision 960-G—Membership of entities
960-130 Members of entities
960-135 Membership interest in an entity
960-140 Ordinary membership interest
Collapse
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
Collapse
Guide to Subdivision 960-M
960-260 What this Subdivision is about
960-265 The provisions for which indexation is relevant
Collapse
Operative provisions
960-270 Indexing amounts
960-275 Indexation factor
960-280 Index number
Subdivision 960-Q—Small business taxpayers
Collapse
Guide to Subdivision 960-Q
960-330 What this Subdivision is about
Collapse
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
Collapse
Subdivision 960-R—Pre-GST annual turnover
960-370 Meaning of pre-GST annual turnover
Collapse
Division 974—Debt and equity interests
Subdivision 974-A—General
Collapse
Guide to Division 974
974-1 What this Division is about
974-5 Overview of Division
Collapse
Operative provisions
974-10 Object
Collapse
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
Collapse
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
Collapse
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
Collapse
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
Collapse
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
Collapse
Division 975—Concepts about companies
Collapse
Subdivision 975-A—General
975-100 When a company is in existence
975-150 Position to affect rights in relation to a company
Collapse
Subdivision 975-W—Wholly-owned groups of companies
975-500 Wholly-owned groups
975-505 What is a 100% subsidiary?
Collapse
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
Collapse
Division 977—Realisation events, and the gains and losses they realise for income tax purposes
Collapse
CGT assets
977-5 Realisation event
977-10 Loss realised for income tax purposes
977-15 Gain realised for income tax purposes
Collapse
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
Collapse
Revenue assets
977-50 Meaning of revenue asset
977-55 Loss or gain realised for income tax purposes
Collapse
Part 6-5—Dictionary definitions
Collapse
Division 995—Definitions
995-1 Definitions [see Note 2]
Volume 9
