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Income Tax Assessment Act 1997
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Administered by
Department of the Treasury
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C2021C00404 C225
01 September 2021
-
10 September 2021
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Volume 1
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Chapter 1—Introduction and core provisions
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Part 1-1—Preliminary
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Division 1—Preliminary
1-1 Short title
1-2 Commencement
1-3 Differences in style not to affect meaning
1-4 Application
1-7 Administration of this Act
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Part 1-2—A Guide to this Act
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Division 2—How to use this Act
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Subdivision 2-A—How to find your way around
2-1 The design
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Subdivision 2-B—How the Act is arranged
2-5 The pyramid
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Subdivision 2-C—How to identify defined terms and find the definitions
2-10 When defined terms are identified
2-15 When terms are not identified
2-20 Identifying the defined term in a definition
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Subdivision 2-D—The numbering system
2-25 Purposes
2-30 Gaps in the numbering
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Subdivision 2-E—Status of Guides and other non-operative material
2-35 Non-operative material
2-40 Guides
2-45 Other material
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Division 3—What this Act is about
3-5 Annual income tax
3-10 Your other obligations as a taxpayer
3-15 Your obligations other than as a taxpayer
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Part 1-3—Core provisions
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Division 4—How to work out the income tax payable on your taxable income
4-1 Who must pay income tax
4-5 Meaning of you
4-10 How to work out how much income tax you must pay
4-15 How to work out your taxable income
4-25 Special provisions for working out your basic income tax liability
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Division 5—How to work out when to pay your income tax
5-1 What this Division is about
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Subdivision 5-A—How to work out when to pay your income tax
5-5 When income tax is payable
5-10 When shortfall interest charge is payable
5-15 General interest charge payable on unpaid income tax or shortfall interest charge
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Division 6—Assessable income and exempt income
6-1 Diagram showing relationships among concepts in this Division
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Operative provisions
6-5 Income according to ordinary concepts (ordinary income)
6-10 Other assessable income (statutory income)
6-15 What is not assessable income
6-20 Exempt income
6-23 Non-assessable non-exempt income
6-25 Relationships among various rules about ordinary income
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Division 8—Deductions
8-1 General deductions
8-5 Specific deductions
8-10 No double deductions
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Part 1-4—Checklists of what is covered by concepts used in the core provisions
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Division 9—Entities that must pay income tax
9-1A Effect of this Division
9-1 List of entities
9-5 Entities that work out their income tax by reference to something other than taxable income
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Division 10—Particular kinds of assessable income
10-1 Effect of this Division
10-5 List of provisions about assessable income
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Division 11—Particular kinds of non-assessable income
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Subdivision 11-A—Lists of classes of exempt income
11-1A Effect of this Subdivision
11-1 Overview
11-5 Entities that are exempt, no matter what kind of ordinary or statutory income they have
11-15 Ordinary or statutory income which is exempt
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Subdivision 11-B—Particular kinds of non-assessable non-exempt income
11-50 Effect of this Subdivision
11-55 List of non-assessable non-exempt income provisions
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Division 12—Particular kinds of deductions
12-1 Effect of this Division
12-5 List of provisions about deductions
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Division 13—Tax offsets
13-1A Effect of this Division
13-1 List of tax offsets
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Chapter 2—Liability rules of general application
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Part 2-1—Assessable income
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Division 15—Some items of assessable income
15-1 What this Division is about
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Operative provisions
15-2 Allowances and other things provided in respect of employment or services
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
15-22 Payments made to members of a copyright collecting society
15-23 Payments of resale royalties by resale royalty collecting society
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 or geothermal exploration information
15-45 Amounts paid under forestry agreements
15-46 Amounts paid under forestry managed investment schemes
15-50 Work in progress amounts
15-55 Certain amounts paid under funeral policy
15-60 Certain amounts paid under scholarship plan
15-70 Reimbursed car expenses
15-75 Bonuses
15-80 Franked distributions entitled to a foreign income tax deduction—Additional Tier 1 capital exception
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Division 17—Effect of GST etc. on assessable income
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
17-30 Special credits because of indirect tax transition
17-35 Certain sections not to apply to certain assets or expenditure
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Division 20—Amounts included to reverse the effect of past deductions
20-1 What this Division is about
20-5 Other provisions that reverse the effect of deductions
Subdivision 20-A—Insurance, indemnity or other recoupment for deductible expenses
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Guide to Subdivision 20-A
20-10 What this Subdivision is about
20-15 How to use this Subdivision
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What is an assessable recoupment?
20-20 Assessable recoupments
20-25 What is recoupment?
20-30 Tables of deductions for which recoupments are assessable
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How much is included in your assessable income?
20-35 If the expense is deductible in a single income year
20-40 If the expense is deductible over 2 or more income years
20-45 Effect of balancing charge
20-50 If the expense is only partially deductible
20-55 Meaning of previous recoupment law
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What if you can deduct a loss or outgoing incurred by another entity?
20-60 If you are the only entity that can deduct an amount for the loss or outgoing
20-65 If 2 or more entities can deduct amounts for the loss or outgoing
Subdivision 20-B—Disposal of a car for which lease payments have been deducted
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Guide to Subdivision 20-B
20-100 What this Subdivision is about
20-105 Map of this Subdivision
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The usual case
20-110 Disposal of a leased car for profit
20-115 Working out the profit on the disposal
20-120 Meaning of notional depreciation
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The associate case
20-125 Disposal of a leased car for profit
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Successive leases
20-130 Successive leases
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Previous disposals of the car
20-135 No amount included if earlier disposal for market value
20-140 Reducing the amount to be included if there has been an earlier disposal
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Miscellaneous rules
20-145 No amount included if you inherited the car
20-150 Reducing the amount to be included if another provision requires you to include an amount for the disposal
20-155 Exception for particular cars taken on hire
20-157 Exception for small business entities
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Disposals of interests in a car: special rules apply
20-160 Disposal of an interest in a car
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Part 2-5—Rules about deductibility of particular kinds of amounts
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Division 25—Some amounts you can deduct
25-1 What this Division is about
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Operative provisions
25-5 Tax-related expenses
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.
25-47 Misappropriation where a balancing adjustment event occurs
25-50 Payments of pensions, gratuities or retiring allowances
25-55 Payments to associations
25-60 Parliament election expenses
25-65 Local government 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
25-85 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
25-100 Travel between workplaces
25-110 Capital expenditure to terminate lease etc.
25-115 Deduction for payment of rent from land investment by operating entity to asset entity in relation to approved economic infrastructure facility
25-120 Transitional—deduction for payment of rent from land investment by operating entity to asset entity
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Division 26—Some amounts you cannot deduct, or cannot deduct in full
26-1 What this Division is about
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Operative provisions
26-5 Penalties
26-10 Leave payments
26-15 Franchise fees windfall tax
26-17 Commonwealth places windfall tax
26-19 Rebatable benefits
26-20 Assistance to students
26-22 Political contributions and gifts
26-25 Interest or royalty
26-25A Seasonal Labour Mobility Program
26-26 Non-share distributions and dividends
26-30 Relative’s travel expenses
26-31 Travel related to use of residential premises as residential accommodation
26-35 Reducing deductions for amounts paid to related entities
26-40 Maintaining your family
26-45 Recreational club expenses
26-47 Non-business boating activities
26-50 Expenses for a leisure facility
26-52 Bribes to foreign public officials
26-53 Bribes to public officials
26-54 Expenditure relating to illegal activities
26-55 Limit on deductions
26-60 Superannuation contributions surcharge
26-68 Loss from disposal of eligible venture capital investments
26-70 Loss from disposal of venture capital equity
26-75 Excess non-concessional contributions tax cannot be deducted
26-80 Financing costs on loans to pay superannuation contribution
26-85 Borrowing costs on loans to pay life insurance premiums
26-90 Superannuation supervisory levy
26-95 Superannuation guarantee charge
26-97 National Disability Insurance Scheme expenditure
26-98 Division 293 tax cannot be deducted
26-99 Excess transfer balance tax cannot be deducted
26-100 Expenditure attributable to water infrastructure improvement payments
26-102 Expenses associated with holding vacant land
26-105 Non-compliant payments for work and services
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Division 27—Effect of input tax credits etc. on deductions
27-1 What this Division is about
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Subdivision 27-A—General
27-5 Input tax credits and decreasing adjustments
27-10 Certain increasing adjustments
27-15 GST payments
27-20 Elements in calculation of amounts
27-25 GST groups and GST joint ventures
27-35 Certain sections not to apply to certain assets or expenditure
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Subdivision 27-B—Effect of input tax credits etc. on capital allowances
27-80 Cost or opening adjustable value of depreciating assets reduced for input tax credits
27-85 Cost or opening adjustable value of depreciating assets reduced: decreasing adjustments
27-87 Certain decreasing adjustments included in assessable income
27-90 Cost or opening adjustable value of depreciating assets increased: increasing adjustments
27-92 Certain increasing adjustments can be deducted
27-95 Balancing adjustment events
27-100 Pooling
27-105 Other Division 40 expenditure
27-110 Input tax credit etc. relating to 2 or more things
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Division 28—Car expenses
28-1 What this Division is about
28-5 Map of this Division
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Subdivision 28-A—Deductions for car expenses
28-10 Application of Division 28
28-12 Car expenses
28-13 Meaning of car expense
Subdivision 28-B—Choosing which method to use
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Guide to Subdivision 28-B
28-14 What this Subdivision is about
28-15 Choosing between the 2 methods
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Operative provision
28-20 Rules governing choice of method
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Subdivision 28-C—The “cents per kilometre” method
28-25 How to calculate your deduction
28-30 Capital allowances
28-35 Substantiation
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Subdivision 28-F—The “log book” method
28-90 How to calculate your deduction
28-95 Eligibility
28-100 Substantiation
Subdivision 28-G—Keeping a log book
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Guide to Subdivision 28-G
28-105 What this Subdivision is about
28-110 Steps for keeping a log book
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Operative provisions
28-115 Income years for which you need to keep a log book
28-120 Choosing the 12 week period for a log book
28-125 How to keep a log book
28-130 Replacing one car with another
Subdivision 28-H—Odometer records for a period
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Guide to Subdivision 28-H
28-135 What this Subdivision is about
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Operative provision
28-140 How to keep odometer records for a car for a period
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Subdivision 28-I—Retaining the log book and odometer records
28-150 Retaining the log book for the retention period
28-155 Retaining odometer records
Subdivision 28-J—Situations where you cannot use, or do not need to use, one of the 2 methods
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Guide to Subdivision 28-J
28-160 What this Subdivision is about
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Operative provisions
28-165 Exception for particular cars taken on hire
28-170 Exception for particular cars used in particular ways
28-175 Further miscellaneous exceptions
28-180 Car expenses related to award transport payments
28-185 Application of Subdivision 28-J to recipients and payers of certain withholding payments
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Division 30—Gifts or contributions
30-1 What this Division is about
30-5 How to find your way around this Division
30-10 Index
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Subdivision 30-A—Deductions for gifts or contributions
30-15 Table of gifts or contributions that you can deduct
30-17 Requirements for certain recipients
Subdivision 30-B—Tables of recipients for deductible gifts
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Health
30-20 Health
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Education
30-25 Education
30-30 Gifts that must be for certain purposes
30-35 Rural schools hostel buildings
30-37 Scholarship etc. funds
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Research
30-40 Research
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Welfare and rights
30-45 Welfare and rights
30-45A Australian disaster relief funds—declarations by Minister
30-46 Australian disaster relief funds—declarations under State and Territory law
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Defence
30-50 Defence
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Environment
30-55 The environment
30-60 Gifts to a National Parks body or conservation body must satisfy certain requirements
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Industry, trade and design
30-65 Industry, trade and design
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The family
30-70 The family
30-75 Marriage education organisations must be approved
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International affairs
30-80 International affairs
30-85 Developing country relief funds
30-86 Developed country disaster relief funds
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Sports and recreation
30-90 Sports and recreation
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Philanthropic trusts
30-95 Philanthropic trusts
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Cultural organisations
30-100 Cultural organisations
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Fire and emergency services
30-102 Fire and emergency services
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Other recipients
30-105 Other recipients
Subdivision 30-BA—Endorsement of deductible gift recipients
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Guide to Subdivision 30-BA
30-115 What this Subdivision is about
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Endorsement as a deductible gift recipient
30-120 Endorsement by Commissioner
30-125 Entitlement to endorsement
30-130 Maintaining a gift fund
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Government entities treated like entities
30-180 How this Subdivision applies to government entities
Subdivision 30-C—Rules applying to particular gifts of property
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Valuation requirements
30-200 Getting written valuations
30-205 Proceeds of the sale would have been assessable
30-210 Approved valuers
30-212 Valuations by the Commissioner
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Working out the amount you can deduct for a gift of property
30-215 How much you can deduct
30-220 Reducing the amount you can deduct
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Joint ownership of property
30-225 Gift of property by joint owners
Subdivision 30-CA—Administrative requirements relating to ABNs
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Guide to Subdivision 30-CA
30-226 What this Subdivision is about
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Requirements
30-227 Entities to which this Subdivision applies
30-228 Content of receipt for gift or contribution
30-229 Australian Business Register must show deductibility of gifts to deductible gift recipient
Subdivision 30-DA—Donations to political parties and independent candidates and members
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Guide to Subdivision 30-DA
30-241 What this Subdivision is about
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Operative provisions
30-242 Deduction for political contributions and gifts
30-243 Amount of the deduction
30-244 When an individual is an independent candidate
30-245 When an individual is an independent member
Subdivision 30-DB—Spreading certain gift and covenant deductions over up to 5 income years
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Guide to Subdivision 30-DB
30-246 What this Subdivision is about
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Operative provisions
30-247 Gifts and covenants for which elections can be made
30-248 Making an election
30-249 Effect of election
30-249A Requirements—environmental property gifts
30-249B Requirements—heritage property gifts
30-249D Requirements—conservation covenants
Subdivision 30-E—Register of environmental organisations
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Guide to Subdivision 30-E
30-250 What this Subdivision is about
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Operative provisions
30-255 Establishing the register
30-260 Meaning of environmental organisation
30-265 Its principal purpose must be protecting the environment
30-270 Other requirements it must satisfy
30-275 Further requirement for a body corporate or a co-operative society
30-280 What must be on the register
30-285 Removal from the register
Subdivision 30-EA—Register of harm prevention charities
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Guide to Subdivision 30-EA
30-286 What this Subdivision is about
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Operative provisions
30-287 Establishing the register
30-288 Meaning of harm prevention charity
30-289 Principal activity—promoting the prevention or control of harm or abuse
30-289A Other requirements
30-289B What must be on the register
30-289C Removal from the register
Subdivision 30-F—Register of cultural organisations
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Guide to Subdivision 30-F
30-290 What this Subdivision is about
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Operative provisions
30-295 Establishing the register
30-300 Meaning of cultural organisation
30-305 What must be on the register
30-310 Removal from the register
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Subdivision 30-G—Index to this Division
30-315 Index
30-320 Effect of this Subdivision
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Division 31—Conservation covenants
31-1 What this Division is about
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Operative provisions
31-5 Deduction for entering into conservation covenant
31-10 Requirements for fund, authority or institution
31-15 Valuations by the Commissioner
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Division 32—Entertainment expenses
32-1 What this Division is about
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Subdivision 32-A—No deduction for entertainment expenses
32-5 No deduction for entertainment expenses
32-10 Meaning of entertainment
32-15 No deduction for property used for providing entertainment
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Subdivision 32-B—Exceptions
32-20 The main exception—fringe benefits
32-25 The tables set out the other exceptions
32-30 Employer expenses
32-35 Seminar expenses
32-40 Entertainment industry expenses
32-45 Promotion and advertising expenses
32-50 Other expenses
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Subdivision 32-C—Definitions relevant to the exceptions
32-55 In-house dining facility (employer expenses table items 1.1 and 1.2)
32-60 Dining facility (employer expenses table item 1.3)
32-65 Seminars (seminar expenses table item 2.1)
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Subdivision 32-D—In-house dining facilities (employer expenses table item 1.2)
32-70 $30 is assessable for each meal provided to non-employee in an in-house dining facility
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Subdivision 32-E—Anti-avoidance
32-75 Commissioner may treat you as having incurred entertainment expense
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Subdivision 32-F—Special rules for companies and partnerships
32-80 Company directors
32-85 Directors, employees and property of wholly-owned group company
32-90 Partnerships
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Division 34—Non-compulsory uniforms
34-1 What this Division is about
34-3 What you need to read
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Subdivision 34-A—Application of Division 34
34-5 This Division applies to employees and others
34-7 This Division applies to employers and others
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Subdivision 34-B—Deduction for your non-compulsory uniform
34-10 What you can deduct
34-15 What is a non-compulsory uniform?
34-20 What are occupation specific clothing and protective clothing?
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Subdivision 34-C—Registering the design of a non-compulsory uniform
34-25 Application to register the design
34-30 Industry Secretary’s decision on application
34-33 Written notice of decision
34-35 When uniform becomes registered
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Subdivision 34-D—Appeals from Industry Secretary’s decision
34-40 Review of decisions by the Administrative Appeals Tribunal
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Subdivision 34-E—The Register of Approved Occupational Clothing
34-45 Keeping of the Register
34-50 Changes to the Register
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Subdivision 34-F—Approved occupational clothing guidelines
34-55 Approved occupational clothing guidelines
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Subdivision 34-G—The Industry Secretary
34-60 Industry Secretary to give Commissioner information about entries
34-65 Delegation of powers by Industry Secretary
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Division 35—Deferral of losses from non-commercial business activities
35-1 What this Division is about
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Operative provisions
35-5 Object
35-10 Deferral of deductions from non-commercial business activities
35-15 Modification if you have exempt income
35-20 Modification if you become bankrupt
35-25 Application of Division to certain partnerships
35-30 Assessable income test
35-35 Profits test
35-40 Real property test
35-45 Other assets test
35-50 Apportionment
35-55 Commissioner’s discretion
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Division 36—Tax losses of earlier income years
36-1 What this Division is about
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Subdivision 36-A—Deductions for tax losses of earlier income years
36-10 How to calculate a tax loss for an income year
36-15 How to deduct tax losses of entities other than corporate tax entities
36-17 How to deduct tax losses of corporate tax entities
36-20 Net exempt income
36-25 Special rules about tax losses
Subdivision 36-B—Effect of you becoming bankrupt
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Guide to Subdivision 36-B
36-30 What this Subdivision is about
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Operative provisions
36-35 No deduction for tax loss incurred before bankruptcy
36-40 Deduction for amounts paid for debts incurred before bankruptcy
36-45 Limit on deductions for amounts paid
Subdivision 36-C—Excess franking offsets
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Guide to Subdivision 36-C
36-50 What this Subdivision is about
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Operative provision
36-55 Converting excess franking offsets into tax loss
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Volume 2
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Chapter 2—Liability rules of general application
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Part 2-10—Capital allowances: rules about deductibility of capital expenditure
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Division 40—Capital allowances
40-1 What this Division is about
40-10 Simplified outline of this Division
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Subdivision 40-A—Objects of Division
40-15 Objects of Division
Subdivision 40-B—Core provisions
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Guide to Subdivision 40-B
40-20 What this Subdivision is about
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Operative provisions
40-25 Deducting amounts for depreciating assets
40-27 Further reduction of deduction for second-hand assets in residential property
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
40-53 Alterations etc. to certain depreciating assets
40-55 Use of the “cents per kilometre” car expense deduction method
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
40-72 Diminishing value method for post-9 May 2006 assets
40-75 Prime cost method
40-80 When you can deduct the asset’s cost
40-82 Assets costing less than $150,000—medium sized businesses—assets first acquired between 2 April 2019 and 31 December 2020
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
40-103 Effective life and remaining effective life of certain vessels
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
Subdivision 40-C—Cost
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Guide to Subdivision 40-C
40-170 What this Subdivision is about
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Operative provisions
40-175 Cost
40-180 First element of cost
40-185 Amount you are taken to have paid to hold a depreciating asset or to receive a benefit
40-190 Second element of cost
40-195 Apportionment of cost
40-200 Exclusion from cost
40-205 Cost of a split depreciating asset
40-210 Cost of merged depreciating assets
40-215 Adjustment: double deduction
40-220 Cost reduced by amounts not of a capital nature
40-222 Cost reduced by water infrastructure improvement expenditure
40-225 Adjustment: acquiring a car at a discount
40-230 Adjustment: car limit
40-235 Adjustment: National Disability Insurance Scheme costs
Subdivision 40-D—Balancing adjustments
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Guide to Subdivision 40-D
40-280 What this Subdivision is about
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Operative provisions
40-285 Balancing adjustments
40-290 Reduction for non-taxable use
40-291 Reduction for second-hand assets used in residential property
40-292 Adjustments—assets used for both general tax purposes and R&D activities
40-293 Adjustments—partnership assets used for both general tax purposes and R&D activities
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
40-320 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
40-362 Roll-over relief for holders of vessels covered by certificates under the Shipping Reform (Tax Incentives) Act 2012
40-363 Roll-over relief for interest realignment arrangements
40-364 Interest realignment adjustments
40-365 Involuntary disposals
40-370 Balancing adjustments where there has been use of different car expense methods
Subdivision 40-E—Low-value and software development pools
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Guide to Subdivision 40-E
40-420 What this Subdivision is about
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Operative provisions
40-425 Allocating assets to a low-value pool
40-430 Rules for assets in low-value pools
40-435 Private or exempt use of assets
40-440 How you work out the decline in value of assets in low-value pools
40-445 Balancing adjustment events
40-450 Software development pools
40-455 How to work out your deduction
40-460 Your assessable income includes consideration for pooled software
Subdivision 40-F—Primary production depreciating assets
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Guide to Subdivision 40-F
40-510 What this Subdivision is about
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Operative provisions
40-515 Water facilities, horticultural plants, fodder storage assets and fencing assets
40-520 Meaning of water facility, horticultural plant, fodder storage asset and fencing asset
40-525 Conditions
40-530 When declines in value start
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
40-548 How you work out the decline in value for fodder storage assets
40-551 How you work out the decline in value for fencing assets
40-555 Amounts you cannot deduct
40-560 Non-arm’s length transactions
40-565 Extra deduction for destruction of a horticultural plant
40-570 How this Subdivision applies to partners and partnerships
40-575 Getting tax information if you acquire a horticultural plant
Subdivision 40-G—Capital expenditure of primary producers and other landholders
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Guide to Subdivision 40-G
40-625 What this Subdivision is about
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Operative provisions
40-630 Landcare operations
40-635 Meaning of landcare operation
40-640 Meaning of approved management plan
40-645 Electricity and telephone lines
40-650 Amounts you cannot deduct under this Subdivision
40-655 Meaning of connecting power to land or upgrading the connection and metering point
40-660 Non-arm’s length transactions
40-665 How this Subdivision applies to partners and partnerships
40-670 Approval of persons as farm consultants
40-675 Review of decisions relating to approvals
Subdivision 40-H—Capital expenditure that is immediately deductible
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Guide to Subdivision 40-H
40-725 What this Subdivision is about
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Operative provisions
40-730 Deduction for expenditure on exploration or prospecting
40-735 Deduction for expenditure on mining site rehabilitation
40-740 Meaning of ancillary mining activities and mining building site
40-745 No deduction for certain expenditure
40-750 Deduction for payments of petroleum resource rent tax
40-755 Environmental protection activities
40-760 Limits on deductions from environmental protection activities
40-765 Non-arm’s length transactions
Subdivision 40-I—Capital expenditure that is deductible over time
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Guide to Subdivision 40-I
40-825 What this Subdivision is about
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Operative provisions
40-830 Project pools
40-832 Project pools for post-9 May 2006 projects
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
Subdivision 40-J—Capital expenditure for the establishment of trees in carbon sink forests
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Guide to Subdivision 40-J
40-1000 What this Subdivision is about
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Operative provisions
40-1005 Deduction for expenditure for establishing trees in carbon sink forests
40-1010 Expenditure for establishing trees in carbon sink forests
40-1015 Carbon sequestration by trees
40-1020 Certain expenditure disregarded
40-1025 Non-arm’s length transactions
40-1030 Extra deduction for destruction of trees in carbon sink forest
40-1035 Getting information if you acquire a carbon sink forest
Subdivision 40-K—Farm-in farm-out arrangements
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Guide to Subdivision 40-K
40-1095 What this Subdivision is about
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Farm-in farm-out arrangements and exploration benefits
40-1100 Meaning of farm-in farm-out arrangement and exploration benefit
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Consequences for transferors
40-1105 Treatment of certain exploration benefits received under farm-in farm-out arrangements
40-1110 Cost of split interests resulting from farm-in farm-out arrangements
40-1115 Deductions relating to receipt of exploration benefits
40-1120 Cost base and reduced cost base of exploration benefits etc.
40-1125 Effect of exploration benefits on the cost of mining, quarrying or prospecting information
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Consequences for transferees
40-1130 Consequences of certain exploration benefits provided under farm-in farm-out arrangements
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Division 41—Additional deduction for certain new business investment
41-1 What this Division is about
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Operative provisions
41-5 Object of Division
41-10 Entitlement to deduction for investment
41-15 Amount of deduction
41-20 Recognised new investment amount
41-25 Investment commitment time
41-30 First use time
41-35 New investment threshold
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Division 43—Deductions for capital works
43-1 What this Division is about
43-2 Key concepts used in this Division
Subdivision 43-A—Key operative provisions
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Guide to Subdivision 43-A
43-5 What this Subdivision is about
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Operative provisions
43-10 Deductions for capital works
43-15 Amount you can deduct
43-20 Capital works to which this Division applies
43-25 Rate of deduction
43-30 No deduction until construction is complete
43-35 Requirement for registration under the Industry Research and Development Act
43-40 Deduction for destruction of capital works
43-45 Certain anti-avoidance provisions
43-50 Links and signposts to other parts of the Act
43-55 Anti-avoidance—arrangement etc. with tax-exempt entity
Subdivision 43-B—Establishing the deduction base
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Guide to Subdivision 43-B
43-60 What this Subdivision is about
43-65 Explanatory material
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Operative provisions
43-70 What is construction expenditure?
43-72 Meaning of forestry road, timber operation and timber mill building
43-75 Construction expenditure area
43-80 When capital works begin
43-85 Pools of construction expenditure
43-90 Table of intended use at time of completion of construction
43-95 Meaning of hotel building and apartment building
43-100 Certificates by Innovation and Science Australia
Subdivision 43-C—Your area and your construction expenditure
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Guide to Subdivision 43-C
43-105 What this Subdivision is about
43-110 Explanatory material
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Operative provisions
43-115 Your area and your construction expenditure—owners
43-120 Your area and your construction expenditure—lessees and quasi-ownership right holders
43-125 Lessees’ or right holders’ pools can revert to owner
43-130 Identifying your area on acquisition or disposal
Subdivision 43-D—Deductible uses of capital works
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Guide to Subdivision 43-D
43-135 What this Subdivision is about
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Operative provisions
43-140 Using your area in a deductible way
43-145 Using your area in the 4% manner
43-150 Meaning of industrial activities
Subdivision 43-E—Special rules about uses
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Guide to Subdivision 43-E
43-155 What this Subdivision is about
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Operative provisions
43-160 Your area is used for a purpose if it is maintained ready for use for the purpose
43-165 Temporary cessation of use
43-170 Own use—capital works other than hotel and apartment buildings
43-175 Own use—hotel and apartment buildings
43-180 Special rules for hotel and apartment buildings
43-185 Residential or display use
43-190 Use of facilities not commonly provided, and of certain buildings used to operate a hotel, motel or guest house
43-195 Use for R&D activities must be in connection with a business
Subdivision 43-F—Calculation of deduction
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Guide to Subdivision 43-F
43-200 What this Subdivision is about
43-205 Explanatory material
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Operative provisions
43-210 Deduction for capital works begun after 26 February 1992
43-215 Deduction for capital works begun before 27 February 1992
43-220 Capital works taken to have begun earlier for certain purposes
Subdivision 43-G—Undeducted construction expenditure
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Guide to Subdivision 43-G
43-225 What this Subdivision is about
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Operative provisions
43-230 Calculating undeducted construction expenditure—common step
43-235 Post-26 February 1992 undeducted construction expenditure
43-240 Pre-27 February 1992 undeducted construction expenditure
Subdivision 43-H—Balancing deduction on destruction of capital works
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Guide to Subdivision 43-H
43-245 What this Subdivision is about
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Operative provisions
43-250 The amount of the balancing deduction
43-255 Amounts received or receivable
43-260 Apportioning amounts received for destruction
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Division 45—Disposal of leases and leased plant
45-1 What this Division is about
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Operative provisions
45-5 Disposal of leased plant or lease
45-10 Disposal of interest in partnership
45-15 Disposal of shares in 100% subsidiary that leases plant
45-20 Disposal of shares in 100% subsidiary that leases plant in partnership
45-25 Group members liable to pay outstanding tax
45-30 Reduction for certain plant acquired before 21.9.99
45-35 Limit on amount included for plant for which there is a CGT exemption
45-40 Meaning of plant and written down value
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Part 2-15—Non-assessable income
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Division 50—Exempt entities
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Subdivision 50-A—Various exempt entities
50-1 Entities whose ordinary income and statutory income is exempt
50-5 Charity, education and science
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 and recreation
50-47 Special condition for all items
50-50 Special conditions for item 1.1
50-52 Special condition for item 1.1
50-55 Special conditions for items 1.3, 1.4, 6.1 and 6.2
50-65 Special conditions for item 1.6
50-70 Special conditions for items 1.7, 2.1, 9.1 and 9.2
50-72 Special condition for item 4.1
50-75 Certain distributions may be made overseas
Subdivision 50-B—Endorsing charitable entities as exempt from income tax
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Guide to Subdivision 50-B
50-100 What this Subdivision is about
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Endorsing charitable entities as exempt from income tax
50-105 Endorsement by Commissioner
50-110 Entitlement to endorsement
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Division 51—Exempt amounts
51-1 Amounts of ordinary income and statutory income that are exempt
51-5 Defence
51-10 Education and training
51-30 Welfare
51-32 Compensation payments for loss of tax exempt payments
51-33 Compensation payments for loss of pay and/or allowances as a Defence reservist
51-35 Payments to a full-time student at a school, college or university
51-40 Payments to a secondary student
51-42 Bonuses for early completion of an apprenticeship
51-43 Income collected or derived by copyright collecting society
51-45 Income collected or derived by resale royalty collecting society
51-50 Maintenance payments to a spouse or child
51-52 Income derived from eligible venture capital investments by ESVCLPs
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 Prime Minister’s Prizes
51-100 Shipping
51-105 Shipping activities
51-110 Core shipping activities
51-115 Incidental shipping activities
51-120 Interest on unclaimed money and property
51-125 2018 storms—relief payments
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Division 52—Certain pensions, benefits and allowances are exempt from income tax
52-1 What this Division is about
Subdivision 52-A—Exempt payments under the Social Security Act 1991
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Guide to Subdivision 52-A
52-5 What this Subdivision is about
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Operative provisions
52-10 How much of a social security payment is exempt?
52-15 Supplementary amounts of payments
52-20 Tax-free amount of an ordinary payment after the death of your partner
52-25 Tax-free amount of certain bereavement lump sum payments
52-30 Tax-free amount of certain other bereavement lump sum payments
52-35 Tax-free amount of a lump sum payment made because of the death of a person you are caring for
52-40 Provisions of the Social Security Act 1991 under which payments are made
Subdivision 52-B—Exempt payments under the Veterans’ Entitlements Act 1986
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Guide to Subdivision 52-B
52-60 What this Subdivision is about
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Operative provisions
52-65 How much of a veterans’ affairs payment is exempt?
52-70 Supplementary amounts of payments
52-75 Provisions of the Veterans’ Entitlements Act 1986 under which payments are made
Subdivision 52-C—Exempt payments made because of the Veterans’ Entitlements (Transitional Provisions and Consequential Amendments) Act 1986
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Guide to Subdivision 52-C
52-100 What this Subdivision is about
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Operative provisions
52-105 Supplementary amount of a payment made under the Repatriation Act 1920 is exempt
52-110 Other exempt payments
Subdivision 52-CA—Exempt payments under the Military Rehabilitation and Compensation Act 2004
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Guide to Subdivision 52-CA
52-112 What this Subdivision is about
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Operative provisions
52-114 How much of a payment under the Military Rehabilitation and Compensation Act is exempt?
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Subdivision 52-CB—Exempt payments under the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006
52-117 Payments of travelling expenses and pharmaceutical supplement are exempt
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Subdivision 52-CC—Exempt payments under the Treatment Benefits (Special Access) Act 2019
52-120 Payments of travelling expenses and pharmaceutical supplement are exempt
Subdivision 52-E—Exempt payments under the ABSTUDY scheme
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Guide to Subdivision 52-E
52-130 What this Subdivision is about
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Operative provisions
52-131 Payments under ABSTUDY scheme
52-132 Supplementary amount of payment
52-133 Tax-free amount of ordinary payment on death of partner if no bereavement payment payable
52-134 Tax-free amount if you receive a bereavement lump sum payment
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Subdivision 52-F—Exemption of Commonwealth education or training payments
52-140 Supplementary amount of a Commonwealth education or training payment is exempt
52-145 Meaning of Commonwealth education or training payment
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Subdivision 52-G—Exempt payments under the A New Tax System (Family Assistance) (Administration) Act 1999
52-150 Family assistance payments are exempt
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Subdivision 52-H—Other exempt payments
52-160 Economic security strategy payments are exempt
52-162 ETR payments are exempt
52-165 Household stimulus payments are exempt
52-170 Outer Regional and Remote payments under the Helping Children with Autism package are exempt
52-172 Outer Regional and Remote payments under the Better Start for Children with Disability initiative are exempt
52-175 Continence aids payments are exempt
52-180 National Disability Insurance Scheme amounts are exempt
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Division 53—Various exempt payments
53-1 What this Division is about
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Operative provisions
53-10 Exemption of various types of payments
53-20 Exemption of similar Australian and United Kingdom veterans’ payments
53-25 Coronavirus economic response payment
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Division 54—Exemption for certain payments made under structured settlements and structured orders
54-1 What this Division is about
Subdivision 54-A—Definitions
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Operative provisions
54-5 Definitions
54-10 Meaning of structured settlement and structured order
Subdivision 54-B—Tax exemption for personal injury annuities
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Operative provisions
54-15 Personal injury annuity exemption for injured person
54-20 Lump sum compensation etc. would not have been assessable
54-25 Requirements of the annuity instrument
54-30 Requirements for payments of the annuity
54-35 Payments during the guarantee period on the death of the injured person
54-40 Requirement for minimum monthly level of support
Subdivision 54-C—Tax exemption for personal injury lump sums
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Operative provisions
54-45 Personal injury lump sum exemption for injured person
54-50 Lump sum compensation would not have been assessable
54-55 Requirements of the instrument under which the lump sum is paid
54-60 Requirements for payments of the lump sum
Subdivision 54-D—Miscellaneous
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Operative provisions
54-65 Exemption for certain payments to reversionary beneficiaries
54-70 Special provisions about trusts
54-75 Minister to arrange for review and report
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Division 55—Payments that are not exempt from income tax
55-1 What this Division is about
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Operative provisions
55-5 Occupational superannuation payments
55-10 Education entry payments
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Division 58—Capital allowances for depreciating assets previously owned by an exempt entity
58-1 What this Division is about
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Subdivision 58-A—Application
58-5 Application of Division
58-10 When an asset is acquired in connection with the acquisition of a business
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Subdivision 58-B—Calculating decline in value of privatised assets under Division 40
58-60 Purpose of rules in this Subdivision
58-65 Choice of method to work out cost of privatised asset
58-70 Application of Division 40
58-75 Meaning of notional written down value
58-80 Meaning of undeducted pre-existing audited book value
58-85 Pre-existing audited book value of depreciating asset
58-90 Method and effective life for transition entity
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Division 59—Particular amounts of non-assessable non-exempt income
59-1 What this Division is about
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Operative provisions
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
59-35 Amounts that would be mutual receipts but for prohibition on distributions to members or issue of MCIs
59-40 Issue of rights
59-50 Native title benefits
59-55 2019-20 bushfires—payments for volunteer work with fire services
59-60 2019-20 bushfires—disaster relief payments and non-cash benefits
59-65 Water infrastructure improvement payments
59-67 Meaning of SRWUIP program, SRWUIP payment, direct SRWUIP payment and indirect SRWUIP payment
59-70 List of SRWUIP programs
59-75 Commissioner to be kept informed
59-80 Amending assessments
59-85 2019 floods—recovery grants for small businesses, primary producers and non-profit organisations
59-86 2019 floods—on-farm grant program for primary producers
59-90 Cash flow boost
59-95 Coronavirus economic response payment
59-96 COVID-19 disaster payment
59-97 State and Territory grants to small business relating to the recovery from the coronavirus known as COVID-19
59-98 Commonwealth small business support payments relating to the coronavirus known as COVID-19
59-99 2021 floods and storms—recovery grants
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Part 2-20—Tax offsets
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Division 61—Generally applicable tax offsets
Subdivision 61-A—Dependant (invalid and carer) tax offset
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Guide to Subdivision 61-A
61-1 What this Subdivision is about
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Object of this Subdivision
61-5 Object of this Subdivision
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Entitlement to the dependant (invalid and carer) tax offset
61-10 Who is entitled to the tax offset
61-15 Cases involving more than one spouse
61-20 Exceeding the income limit for family tax benefit (Part B)
61-25 Eligibility for family tax benefit (Part B) without shared care
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Amount of the dependant (invalid and carer) tax offset
61-30 Amount of the dependant (invalid and carer) tax offset
61-35 Families with shared care percentages
61-40 Reduced amounts of dependant (invalid and carer) tax offset
61-45 Reductions to take account of the other individual’s income
Subdivision 61-D—Low and Middle Income tax offset and Low Income tax offset
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Guide to Subdivision 61-D
61-100 What this Subdivision is about
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Operative provisions
61-105 Entitlement to the Low and Middle Income tax offset
61-107 Amount of the Low and Middle Income tax offset
61-110 Entitlement to the Low Income tax offset
61-115 Amount of the Low Income tax offset
Subdivision 61-G—Private health insurance offset complementary to Part 2-2 of the Private Health Insurance Act 2007
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Guide to Subdivision 61-G
61-200 What this Subdivision is about
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Operative provisions
61-205 Entitlement to the private health insurance tax offset
61-210 Amount of the private health insurance tax offset
61-215 Reallocation of the private health insurance tax offset between spouses
Subdivision 61-L—Tax offset for Medicare levy surcharge (lump sum payments in arrears)
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Guide to Subdivision 61-L
61-575 What this Subdivision is about
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Operative provisions
61-580 Entitlement to a tax offset
61-585 The amount of a tax offset
61-590 Definition of MLS lump sums
Subdivision 61-N—Seafarer tax offset
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Guide to Subdivision 61-N
61-695 What this Subdivision is about
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Operative provisions
61-700 Object of this Subdivision
61-705 Who is entitled to the seafarer tax offset
61-710 Amount of the seafarer tax offset
Subdivision 61-P—ESVCLP tax offset
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Guide to Subdivision 61-P
61-750 What this Subdivision is about
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Operative provisions
61-755 Object of this Subdivision
61-760 Who is entitled to the ESVCLP tax offset
61-765 Amount of the ESVCLP tax offset—general case
61-770 Amount of the ESVCLP tax offset—members of trusts or partnerships
61-775 Amount of the ESVCLP tax offset—trustees
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Division 63—Common rules for tax offsets
63-1 What this Division is about
63-10 Priority rules
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Division 65—Tax offset carry forward rules
65-10 What this Division is about
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Operative provisions
65-30 Amount carried forward
65-35 How to apply carried forward tax offsets
65-40 When a company cannot apply a tax offset
65-50 Effect of bankruptcy
65-55 Deduction for amounts paid for debts incurred before bankruptcy
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Division 67—Refundable tax offset rules
67-10 What this Division is about
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Operative provisions
67-20 Which tax offsets this Division applies to
67-23 Refundable tax offsets
67-25 Refundable tax offsets—franked distributions
67-30 Refundable tax offsets—R&D
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Volume 3
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Chapter 2—Liability rules of general application
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Part 2-25—Trading stock
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Division 70—Trading stock
70-1 What this Division is about
70-5 The 3 key features of tax accounting for trading stock
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Subdivision 70-A—What is trading stock
70-10 Meaning of trading stock
70-12 Registered emissions units
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Subdivision 70-B—Acquiring trading stock
70-15 In which income year do you deduct an outgoing for trading stock?
70-20 Non-arm’s length transactions
70-25 Cost of trading stock is not a capital outgoing
70-30 Starting to hold as trading stock an item you already own
Subdivision 70-C—Accounting for trading stock you hold at the start or end of the income year
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General rules
70-35 You include the value of your trading stock in working out your assessable income and deductions
70-40 Value of trading stock at start of income year
70-45 Value of trading stock at end of income year
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Special valuation rules
70-50 Valuation if trading stock obsolete etc.
70-55 Working out the cost of natural increase of live stock
70-60 Valuation of horse breeding stock
70-65 Working out the horse opening value and the horse reduction amount
Subdivision 70-D—Assessable income arising from disposals of trading stock and certain other assets
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Guide to Subdivision 70-D
70-75 What this Subdivision is about
70-80 Why the rules in this Subdivision are necessary
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Operative provisions
70-85 Application of this Subdivision to certain other assets
70-90 Assessable income on disposal of trading stock outside the ordinary course of business
70-95 Purchase price is taken to be market value
70-100 Notional disposal when you stop holding an item as trading stock
70-105 Death of owner
70-110 You stop holding an item as trading stock but still own it
70-115 Compensation for lost trading stock
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Subdivision 70-E—Miscellaneous
70-120 Deducting capital costs of acquiring trees
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Part 2-40—Rules affecting employees and other taxpayers receiving PAYG withholding payments
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Division 80—General rules
80-1 What this Division is about
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Operative provisions
80-5 Holding of an office
80-10 Application to the termination of employment
80-15 Transfer of property
80-20 Payments for your benefit or at your direction or request
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Division 82—Employment termination payments
82-1 What this Division is about
Subdivision 82-A—Employment termination payments: life benefits
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Guide to Subdivision 82-A
82-5 What this Subdivision is about
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Operative provisions
82-10 Taxation of life benefit termination payments
Subdivision 82-B—Employment termination payments: death benefits
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Guide to Subdivision 82-B
82-60 What this Subdivision is about
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Operative provisions
82-65 Death benefits for dependants
82-70 Death benefits for non-dependants
82-75 Death benefits paid to trustee of deceased estate
Subdivision 82-C—Key concepts
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Guide to Subdivision 82-C
82-125 What this Subdivision is about
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Operative provisions
82-130 What is an employment termination payment?
82-135 Payments that are not employment termination payments
82-140 Tax free component of an employment termination payment
82-145 Taxable component of an employment termination payment
82-150 What is an invalidity segment of an employment termination payment?
82-155 What is a pre-July 83 segment of an employment termination payment?
82-160 What is the ETP cap amount?
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Division 83—Other payments on termination of employment
83-1 What this Division is about
Subdivision 83-A—Unused annual leave payments
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Guide to Subdivision 83-A
83-5 What this Subdivision is about
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Operative provisions
83-10 Unused annual leave payment is assessable
83-15 Entitlement to tax offset
Subdivision 83-B—Unused long service leave payments
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Guide to Subdivision 83-B
83-65 What this Subdivision is about
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General
83-70 Application—long service leave
83-75 Meaning of unused long service leave payment
83-80 Taxation of unused long service leave payments
83-85 Entitlement to tax offset
83-90 Meaning of pre-16/8/78 period, pre-18/8/93 period, post-17/8/93 period and long service leave employment period
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Employment wholly full-time or wholly part-time
83-95 How to work out amount of payment attributable to each period
83-100 How to work out unused days of long service leave for each period
83-105 How to work out long service leave accrued in each period
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Employment partly full-time and partly part-time
83-110 Leave accrued in pre-16/8/78, pre-18/8/93 and post-17/8/93 periods—employment full-time and part-time
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Long service leave taken at less than full pay
83-115 Working out used days of long service leave if leave taken at less than full pay
Subdivision 83-C—Genuine redundancy payments and early retirement scheme payments
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Guide to Subdivision 83-C
83-165 What this Subdivision is about
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Operative provisions
83-170 Tax-free treatment of genuine redundancy payments and early retirement scheme payments
83-175 What is a genuine redundancy payment?
83-180 What is an early retirement scheme payment?
Subdivision 83-D—Foreign termination payments
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Guide to Subdivision 83-D
83-230 What this Subdivision is about
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Operative provisions
83-235 Termination payments tax free—foreign resident period
83-240 Termination payments tax free—Australian resident period
Subdivision 83-E—Other payments
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Guide to Subdivision 83-E
83-290 What this Subdivision is about
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Operative provisions
83-295 Termination payments made more than 12 months after termination etc.
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Division 83A—Employee share schemes
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Guide to Division 83A
83A-1 What this Division is about
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Subdivision 83A-A—Objects of Division and key concepts
83A-5 Objects of Division
83A-10 Meaning of ESS interest and employee share scheme
Subdivision 83A-B—Immediate inclusion of discount in assessable income
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Guide to Subdivision 83A-B
83A-15 What this Subdivision is about
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Operative provisions
83A-20 Application of Subdivision
83A-25 Discount to be included in assessable income
83A-30 Amount for which discounted ESS interest acquired
83A-33 Reducing amounts included in assessable income—start ups
83A-35 Reducing amounts included in assessable income—other cases
83A-45 Further conditions for reducing amounts included in assessable income
Subdivision 83A-C—Deferred inclusion of gain in assessable income
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Guide to Subdivision 83A-C
83A-100 What this Subdivision is about
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Main provisions
83A-105 Application of Subdivision
83A-110 Amount to be included in assessable income
83A-115 ESS deferred taxing point—shares
83A-120 ESS deferred taxing point—rights to acquire shares
83A-125 Tax treatment of ESS interests held after ESS deferred taxing points
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Takeovers and restructures
83A-130 Takeovers and restructures
Subdivision 83A-D—Deduction for employer
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Guide to Subdivision 83A-D
83A-200 What this Subdivision is about
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Operative provisions
83A-205 Deduction for employer
83A-210 Timing of general deductions
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Subdivision 83A-E—Miscellaneous
83A-305 Acquisition by associates
83A-310 Forfeiture etc. of ESS interest
83A-315 Market value of ESS interest
83A-320 Interests in a trust
83A-325 Application of Division to relationships similar to employment
83A-330 Application of Division to ceasing employment
83A-335 Application of Division to stapled securities
83A-340 Application of Division to indeterminate rights
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Part 2-42—Personal services income
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Division 84—Introduction
84-1 What this Part is about
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Operative provisions
84-5 Meaning of personal services income
84-10 This Part does not imply that individuals are employees
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Division 85—Deductions relating to personal services income
85-1 What this Division is about
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Operative provisions
85-5 Object of this Division
85-10 Deductions for non-employees relating to personal services income
85-15 Deductions for rent, mortgage interest, rates and land tax
85-20 Deductions for payments to associates etc.
85-25 Deductions for superannuation for associates
85-30 Exception: personal services businesses
85-35 Exception: employees, office holders and religious practitioners
85-40 Application of Subdivision 900-B to individuals who are not employees
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Division 86—Alienation of personal services income
86-1 What this Division is about
86-5 A simple description of what this Division does
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Subdivision 86-A—General
86-10 Object of this Division
86-15 Effect of obtaining personal services income through a personal services entity
86-20 Offsetting the personal services entity’s deductions against personal services income
86-25 Apportionment of entity maintenance deductions among several individuals
86-27 Deduction for net personal services income loss
86-30 Assessable income etc. of the personal services entity
86-35 Later payments of, or entitlements to, personal services income to be disregarded for income tax purposes
86-40 Salary payments shortly after an income year
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Subdivision 86-B—Entitlement to deductions
86-60 General rule for deduction entitlements of personal services entities
86-65 Entity maintenance deductions
86-70 Car expenses
86-75 Superannuation
86-80 Salary or wages promptly paid
86-85 Deduction entitlements of personal services entities for amounts included in an individual’s assessable income
86-87 Personal services entity cannot deduct net personal services income loss
86-90 Application of Divisions 28 and 900 to personal services entities
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Division 87—Personal services businesses
87-1 What this Division is about
87-5 Diagram showing the operation of this Division
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Subdivision 87-A—General
87-10 Object of this Division
87-15 What is a personal services business?
87-18 The results test for a personal services business
87-20 The unrelated clients test for a personal services business
87-25 The employment test for a personal services business
87-30 The business premises test for a personal services business
87-35 Personal services income from Australian government agencies
87-40 Application of this Division to certain agents
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Subdivision 87-B—Personal services business determinations
87-60 Personal services business determinations for individuals
87-65 Personal services business determinations for personal services entities
87-70 Applying etc. for personal services business determinations
87-75 When personal services business determinations have effect
87-80 Revoking personal services business determinations
87-85 Review of decisions
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Chapter 3—Specialist liability rules
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Part 3-1—Capital gains and losses: general topics
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Division 100—A Guide to capital gains and losses
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General overview
100-1 What this Division is about
100-5 Effect of this Division
100-10 Fundamentals of CGT
100-15 Overview of Steps 1 and 2
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Step 1—Have you made a capital gain or a capital loss?
100-20 What events attract CGT?
100-25 What are CGT assets?
100-30 Does an exception or exemption apply?
100-33 Can there be a roll-over?
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Step 2—Work out the amount of the capital gain or loss
100-35 What is a capital gain or loss?
100-40 What factors come into calculating a capital gain or loss?
100-45 How to calculate the capital gain or loss for most CGT events
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Step 3—Work out your net capital gain or loss for the income year
100-50 How to work out your net capital gain or loss
100-55 How do you comply with CGT?
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Keeping records for CGT purposes
100-60 Why keep records?
100-65 What records?
100-70 How long you need to keep records
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Division 102—Assessable income includes net capital gain
102-1 What this Division is about
102-3 Concessions in working out your net capital gain
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Operative provisions
102-5 Assessable income includes net capital gain
102-10 How to work out your net capital loss
102-15 How to apply net capital losses
102-20 Ways you can make a capital gain or a capital loss
102-22 Amounts of capital gains and losses
102-23 CGT event still happens even if gain or loss disregarded
102-25 Order of application of CGT events
102-30 Exceptions and modifications
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Division 103—General rules
103-1 What this Division is about
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Operative provisions
103-5 Giving property as part of a transaction
103-10 Entitlement to receive money or property
103-15 Requirement to pay money or give property
103-25 Choices
103-30 Reduction of cost base etc. by net input tax credits
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Division 104—CGT events
104-1 What this Division is about
104-5 Summary of the CGT events
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Subdivision 104-A—Disposals
104-10 Disposal of a CGT asset: CGT event A1
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Subdivision 104-B—Use and enjoyment before title passes
104-15 Use and enjoyment before title passes: CGT event B1
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Subdivision 104-C—End of a CGT asset
104-20 Loss or destruction of a CGT asset: CGT event C1
104-25 Cancellation, surrender and similar endings: CGT event C2
104-30 End of option to acquire shares etc.: CGT event C3
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Subdivision 104-D—Bringing into existence a CGT asset
104-35 Creating contractual or other rights: CGT event D1
104-40 Granting an option: CGT event D2
104-45 Granting a right to income from mining: CGT event D3
104-47 Conservation covenants: CGT event D4
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Subdivision 104-E—Trusts
104-55 Creating a trust over a CGT asset: CGT event E1
104-60 Transferring a CGT asset to a trust: CGT event E2
104-65 Converting a trust to a unit trust: CGT event E3
104-70 Capital payment for trust interest: CGT event E4
104-71 Adjustment of non-assessable part
104-72 Reducing your capital gain under CGT event E4 if you are a trustee
104-75 Beneficiary becoming entitled to a trust asset: CGT event E5
104-80 Disposal to beneficiary to end income right: CGT event E6
104-85 Disposal to beneficiary to end capital interest: CGT event E7
104-90 Disposal by beneficiary of capital interest: CGT event E8
104-95 Making a capital gain
104-100 Making a capital loss
104-105 Creating a trust over future property: CGT event E9
104-107A AMIT—cost base reduction exceeds cost base: CGT event E10
104-107B Annual cost base adjustment for member’s unit or interest in AMIT
104-107C AMIT cost base net amount
104-107D AMIT cost base reduction amount
104-107E AMIT cost base increase amount
104-107F Receipt of money etc. increasing AMIT cost base reduction amount not to be treated as income
104-107G Effect of AMIT cost base net amount on cost of AMIT membership interest or unit that is a revenue asset—adjustment of cost of asset
104-107H Effect of AMIT cost base net amount on cost of AMIT membership interest or unit that is a revenue asset—amount included in assessable income
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Subdivision 104-F—Leases
104-110 Granting a lease: CGT event F1
104-115 Granting a long-term lease: CGT event F2
104-120 Lessor pays lessee to get lease changed: CGT event F3
104-125 Lessee receives payment for changing lease: CGT event F4
104-130 Lessor receives payment for changing lease: CGT event F5
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Subdivision 104-G—Shares
104-135 Capital payment for shares: CGT event G1
104-145 Liquidator or administrator declares shares or financial instruments worthless: CGT event G3
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Subdivision 104-H—Special capital receipts
104-150 Forfeiture of deposit: CGT event H1
104-155 Receipt for event relating to a CGT asset: CGT event H2
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Subdivision 104-I—Australian residency ends
104-160 Individual or company stops being an Australian resident: CGT event I1
104-165 Exception for individuals
104-170 Trust stops being a resident trust: CGT event I2
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Subdivision 104-J—CGT events relating to roll-overs
104-175 Company ceasing to be member of wholly-owned group after roll-over: CGT event J1
104-180 Sub-group break-up
104-182 Consolidated group break-up
104-185 Change in relation to replacement asset or improved asset after a roll-over under Subdivision 152-E: CGT event J2
104-190 Replacement asset period
104-195 Trust failing to cease to exist after roll-over under Subdivision 124-N: CGT event J4
104-197 Failure to acquire replacement asset and to incur fourth element expenditure after a roll-over under Subdivision 152-E: CGT event J5
104-198 Cost of acquisition of replacement asset or amount of fourth element expenditure, or both, not sufficient to cover disregarded capital gain: CGT event J6
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Subdivision 104-K—Other CGT events
104-205 Incoming international transfer of emissions unit: CGT event K1
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 certain assets used for R&D: 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: CGT event K8
104-255 Carried interests: CGT event K9
104-260 Certain short-term forex realisation gains: CGT event K10
104-265 Certain short-term forex realisation losses: CGT event K11
104-270 Foreign hybrids: CGT event K12
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Subdivision 104-L—Consolidated groups and MEC groups
104-500 Loss of pre-CGT status of membership interests in entity becoming subsidiary member: CGT event L1
104-505 Where pre-formation intra-group roll-over reduction results in negative allocable cost amount: CGT event L2
104-510 Where tax cost setting amounts for retained cost base assets exceeds joining allocable cost amount: CGT event L3
104-515 Where no reset cost base assets and excess of net allocable cost amount on joining: CGT event L4
104-520 Where amount remaining after step 4 of leaving allocable cost amount is negative: CGT event L5
104-525 Error in calculation of tax cost setting amount for joining entity’s assets: CGT event L6
104-535 Where reduction in tax cost setting amounts for reset cost base assets cannot be allocated: CGT event L8
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Division 106—Entity making the gain or loss
106-1 What this Division is about
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Subdivision 106-A—Partnerships
106-5 Partnerships
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Subdivision 106-B—Bankruptcy and liquidation
106-30 Effect of bankruptcy
106-35 Effect of liquidation
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Subdivision 106-C—Absolutely entitled beneficiaries
106-50 Absolutely entitled beneficiaries
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Subdivision 106-D—Securities, charges and encumbrances
106-60 Securities, charges and encumbrances
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Division 108—CGT assets
108-1 What this Division is about
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Subdivision 108-A—What a CGT asset is
108-5 CGT assets
108-7 Interest in CGT assets as joint tenants
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Subdivision 108-B—Collectables
108-10 Losses from collectables to be offset only against gains from collectables
108-15 Sets of collectables
108-17 Cost base of a collectable
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Subdivision 108-C—Personal use assets
108-20 Losses from personal use assets must be disregarded
108-25 Sets of personal use assets
108-30 Cost base of a personal use asset
Subdivision 108-D—Separate CGT assets
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Guide to Subdivision 108-D
108-50 What this Subdivision is about
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Operative provisions
108-55 When is a building a separate asset from land?
108-60 Depreciating asset that is part of a building is a separate asset
108-65 Land adjacent to land acquired before 20 September 1985
108-70 When is a capital improvement a separate asset?
108-75 Capital improvements to CGT assets for which a roll-over may be available
108-80 Deciding if capital improvements are related to each other
108-85 Meaning of improvement threshold
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Division 109—Acquisition of CGT assets
109-1 What this Division is about
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Subdivision 109-A—Operative rules
109-5 General acquisition rules
109-10 When you acquire a CGT asset without a CGT event
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Subdivision 109-B—Signposts to other acquisition rules
109-50 Effect of this Subdivision
109-55 Other acquisition rules
109-60 Acquisition rules outside this Part and Part 3-3
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Division 110—Cost base and reduced cost base
110-1 What this Division is about
110-5 Modifications to general rules
110-10 Rules about cost base not relevant for some CGT events
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Subdivision 110-A—Cost base
110-25 General rules about cost base
110-35 Incidental costs
110-36 Indexation
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What does not form part of the cost base
110-37 Expenditure forming part of cost base or element
110-38 Exclusions
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 110-45 and 110-50
110-54 Debt deductions disallowed by thin capitalisation rules
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Subdivision 110-B—Reduced cost base
110-55 General rules about reduced cost base
110-60 Reduced cost base for partnership assets
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Division 112—Modifications to cost base and reduced cost base
112-1 What this Division is about
112-5 Discussion of modifications
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Subdivision 112-A—General modifications
112-15 General rule for replacement modifications
112-20 Market value substitution rule
112-25 Split, changed or merged assets
112-30 Apportionment rules
112-35 Assumption of liability rule
112-36 Acquisitions of assets involving look-through earnout rights
112-37 Put options
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Subdivision 112-B—Finding tables for special rules
112-40 Effect of this Subdivision
112-45 CGT events
112-46 Annual cost base adjustment for member’s unit or interest in AMIT
112-48 Gifts acquired by associates
112-50 Main residence
112-53 Scrip for scrip roll-over
112-53AA Statutory licences
112-53AB Change of incorporation
112-53A MDO roll-over
112-53B Exchange of stapled ownership interests for units in a unit trust
112-53C Water entitlement roll-overs
112-54 Demergers
112-54A Transfer of assets between certain trusts
112-55 Effect of you dying
112-60 Bonus shares or units
112-65 Rights
112-70 Convertible interests
112-77 Exchangeable interests
112-78 Exploration investments
112-80 Leases
112-85 Options
112-87 Residency
112-90 An asset stops being a pre-CGT asset
112-92 Demutualisation of certain entities
112-95 Transfer of tax losses and net capital losses within wholly-owned groups of companies
112-97 Modifications outside this Part and Part 3-3
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Subdivision 112-C—Replacement-asset roll-overs
112-100 Effect of this Subdivision
112-105 What is a replacement-asset roll-over?
112-110 How is the cost base of the replacement asset modified?
112-115 Table of replacement-asset roll-overs
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Subdivision 112-D—Same-asset roll-overs
112-135 Effect of this Subdivision
112-140 What is a same-asset roll-over?
112-145 How is the cost base of the asset modified?
112-150 Table of same-asset roll-overs
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Division 114—Indexation of cost base
114-1 Indexing elements of cost base
114-5 When indexation relevant
114-10 Requirement for 12 months ownership
114-15 Cost base modifications
114-20 When expenditure is incurred for roll-overs
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Division 115—Discount capital gains and trusts’ net capital gains
115-1 What this Division is about
Subdivision 115-A—Discount capital gains
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What is a discount capital gain?
115-5 What is a discount capital gain?
115-10 Who can make a discount capital gain?
115-15 Discount capital gain must be made after 21 September 1999
115-20 Discount capital gain must not have indexed cost base
115-25 Discount capital gain must be on asset acquired at least 12 months before
115-30 Special rules about time of acquisition
115-32 Special rule about time of acquisition for certain replacement-asset roll-overs
115-34 Further special rule about time of acquisition for certain replacement-asset roll-overs
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What are not discount capital gains?
115-40 Capital gain resulting from agreement made within a year of acquisition
115-45 Capital gain from equity in an entity with newly acquired assets
115-50 Discount capital gain from equity in certain entities
115-55 Capital gains involving money received from demutualisation of friendly society health or life insurer
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Subdivision 115-B—Discount percentage
115-100 What is the discount percentage for a discount capital gain
115-105 Foreign or temporary residents—individuals with direct gains
115-110 Foreign or temporary residents—individuals with trust gains
115-115 Foreign or temporary residents—percentage for individuals
115-120 Foreign or temporary residents—trusts with certain gains
115-125 Investors disposing of property used for affordable housing
Subdivision 115-C—Rules about trusts with net capital gains
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Guide to Subdivision 115-C
115-200 What this Division is about
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Operative provisions
115-210 When this Subdivision applies
115-215 Assessing presently entitled beneficiaries
115-220 Assessing trustees under section 98 of the Income Tax Assessment Act 1936
115-222 Assessing trustees under section 99 or 99A of the Income Tax Assessment Act 1936
115-225 Attributable gain
115-227 Share of a capital gain
115-228 Specifically entitled to an amount of a capital gain
115-230 Choice for resident trustee to be specifically entitled to capital gain
Subdivision 115-D—Tax relief for shareholders in listed investment companies
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Guide to Subdivision 115-D
115-275 What this Subdivision is about
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Operative provisions
115-280 Deduction for certain dividends
115-285 Meaning of LIC capital gain
115-290 Meaning of listed investment company
115-295 Maintaining records
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Division 116—Capital proceeds
116-1 What this Division is about
116-5 General rules
116-10 Modifications to general rules
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General rules
116-20 General rules about capital proceeds
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Modifications to general rules
116-25 Table of modifications to the general rules
116-30 Market value substitution rule: modification 1
116-35 Companies and trusts that are not widely held
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
116-60 Misappropriation rule: modification 6
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Special rules
116-65 Disposal etc. of a CGT asset the subject of an option
116-70 Option requiring both acquisition and disposal etc.
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
116-110 Roll-overs for merging superannuation funds
116-115 Farm-in farm-out arrangements
116-120 Disposals of assets involving look-through earnout rights
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Division 118—Exemptions
118-1 What this Division is about
Subdivision 118-A—General exemptions
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Exempt assets
118-5 Cars, motor cycles and valour decorations
118-10 Collectables and personal use assets
118-12 Assets used to produce exempt income etc.
118-13 Shares in a PDF
118-15 Registered emissions units
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Anti-overlap provisions
118-20 Reducing capital gains if amount otherwise assessable
118-21 Carried interests
118-22 Superannuation lump sums and employment termination payments
118-24 Depreciating assets
118-25 Trading stock
118-27 Division 230 financial arrangements and financial arrangements to which Subdivision 250-E applies
118-30 Film copyright
118-35 R&D
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Exempt or loss-denying transactions
118-37 Compensation, damages etc.
118-40 Expiry of a lease
118-42 Transfer of stratum units
118-45 Sale of rights to mine
118-55 Foreign currency hedging gains and losses
118-60 Certain gifts
118-65 Later distributions of personal services income
118-70 Transactions by exempt entities
118-75 Marriage or relationship breakdown settlements
118-77 Native title and rights to native title benefits
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Boat capital gains
118-80 Reduction of boat capital gain
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Special disability trusts
118-85 Special disability trusts
Subdivision 118-B—Main residence
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Guide to Subdivision 118-B
118-100 What this Subdivision is about
118-105 Map of this Subdivision
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Basic case and concepts
118-110 Basic case
118-115 Meaning of dwelling
118-120 Extension to adjacent land etc.
118-125 Meaning of ownership period
118-130 Meaning of ownership interest in land or a dwelling
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Rules that may extend the exemption
118-135 Moving into a dwelling
118-140 Changing main residences
118-145 Absences
118-147 Absence from dwelling replacing main residence that was compulsorily acquired, destroyed etc.
118-150 If you build, repair or renovate a dwelling
118-155 Where individual referred to in section 118-150 dies
118-160 Destruction of dwelling and sale of land
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Rules that may limit the exemption
118-165 Separate CGT event for adjacent land or other structures
118-170 Spouse having different main residence
118-175 Dependent child having different main residence
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Roll-overs under Subdivision 126-A
118-178 Previous roll-over under Subdivision 126-A
118-180 Acquisition of dwelling from company or trust on marriage or relationship breakdown—roll-over provision applying
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Partial exemption rules
118-185 Partial exemption where dwelling was your main residence during part only of ownership period
118-190 Use of dwelling for producing assessable income
118-192 Special rule for first use to produce income
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Dwellings acquired from deceased estates
118-195 Dwelling acquired from a deceased estate
118-197 Special rule for surviving joint tenant
118-200 Partial exemption for deceased estate dwellings
118-205 Adjustment if dwelling inherited from deceased individual
118-210 Trustee acquiring dwelling under will
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Special disability trusts
118-215 What the following provisions are about
118-218 Exemption available to trustee—main case
118-220 Exemption available to trustee—after the principal beneficiary’s death
118-222 Exemption available to other beneficiary who acquires the CGT asset after the principal beneficiary’s death
118-225 Amount of exemption available after the principal beneficiary’s death—general
118-227 Amount of exemption available after the principal beneficiary’s death—cost base and reduced cost base
118-230 Application of CGT events E5 and E7 in relation to main residence exemption and special disability trusts
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Compulsory acquisitions of adjacent land only
118-240 What the following provisions are about
118-245 CGT events happening only to adjacent land
118-250 Compulsory acquisitions of adjacent land
118-255 Maximum exempt area
118-260 Partial exemption rules
118-265 Extension to adjacent structures
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Subdivision 118-D—Insurance and superannuation
118-300 Insurance policies
118-305 Superannuation
118-310 RSA’s
118-313 Superannuation agreements under the Family Law Act
118-315 Segregated exempt assets of life insurance companies
118-320 Segregated current pension assets of a complying superannuation entity
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Subdivision 118-E—Units in pooled superannuation trusts
118-350 Units in pooled superannuation trusts
Subdivision 118-F—Venture capital investment
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Guide to Subdivision 118-F
118-400 What this Subdivision is about
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Operative provisions
118-405 Exemption for certain foreign venture capital investments through venture capital limited partnerships
118-407 Exemption for certain venture capital investments through early stage venture capital limited partnerships
118-408 Partial exemption for some capital gains otherwise fully exempt under section 118-407
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—investments in companies
118-427 Meaning of eligible venture capital investment—investments in unit trusts
118-428 Additional investment requirements for ESVCLPs
118-430 Meaning of at risk
118-432 Findings of substantially novel applications of technology
118-435 Special rule relating to investment in foreign resident holding companies
118-440 Meaning of permitted entity value
118-445 Meaning of committed capital
118-450 Values of assets and investments of entities without auditors
118-455 Impact Assessment of this Subdivision
Subdivision 118-G—Venture capital: investment by superannuation funds for foreign residents
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Guide to Subdivision 118-G
118-500 What this Subdivision is about
118-505 Exemption for certain foreign venture capital
118-510 Meaning of resident investment vehicle
118-515 Meaning of venture capital entity
118-520 Meaning of superannuation fund for foreign residents
118-525 Meaning of venture capital equity
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Subdivision 118-H—Demutualisation of Tower Corporation
118-550 Demutualisation of Tower Corporation
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Subdivision 118-I—Look-through earnout rights
118-560 Object
118-565 Look-through earnout rights
118-570 Extra ways a CGT asset can be an active asset
118-575 Creating and ending look-through earnout rights
118-580 Temporarily disregard capital losses affected by look-through earnout rights
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Division 121—Record keeping
121-10 What this Division is about
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Operative provisions
121-20 What records you must keep
121-25 How long you must retain the records
121-30 Exceptions
121-35 Asset register entries
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Volume 4
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Chapter 3—Specialist liability rules
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Part 3-3—Capital gains and losses: special topics
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Division 122—Roll-over for the disposal of assets to, or the creation of assets in, a wholly-owned company
122-1 What this Division is about
Subdivision 122-A—Disposal or creation of assets by an individual or trustee to a wholly-owned company
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Guide to Subdivision 122-A
122-5 What this Subdivision is about
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When is a roll-over available
122-15 Disposal or creation of assets—wholly-owned company
122-20 What you receive for the trigger event
122-25 Other requirements to be satisfied
122-35 What if the company undertakes to discharge a liability (disposal case)
122-37 Rules for working out what a liability in respect of an asset is
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Replacement-asset roll-over if you dispose of a CGT asset
122-40 Disposal of a CGT asset
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Replacement-asset roll-over if you dispose of all the assets of a business
122-45 Disposal of all the assets of a business
122-50 All assets acquired on or after 20 September 1985
122-55 All assets acquired before 20 September 1985
122-60 Assets acquired before and after 20 September 1985
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Replacement-asset roll-over for a creation case
122-65 Creation of asset
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Same-asset roll-over consequences for the company (disposal case)
122-70 Consequences for the company (disposal case)
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Same-asset roll-over consequences for the company (creation case)
122-75 Consequences for the company (creation case)
Subdivision 122-B—Disposal or creation of assets by partners to a wholly-owned company
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Guide to Subdivision 122-B
122-120 What this Subdivision is about
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When is a roll-over available
122-125 Disposal or creation of assets—wholly-owned company
122-130 What the partners receive for the trigger event
122-135 Other requirements to be satisfied
122-140 What if the company undertakes to discharge a liability (disposal case)
122-145 Rules for working out what a liability in respect of an interest in an asset is
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Replacement-asset roll-over if partners dispose of a CGT asset
122-150 Capital gain or loss disregarded
122-155 Disposal of post-CGT or pre-CGT interests
122-160 Disposal of both post-CGT and pre-CGT interests
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Replacement-asset roll-over if the partners dispose of all the assets of a business
122-170 Capital gain or loss disregarded
122-175 Other consequences
122-180 All interests acquired on or after 20 September 1985
122-185 All interests acquired before 20 September 1985
122-190 Interests acquired before and after 20 September 1985
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Replacement-asset roll-over for a creation case
122-195 Creation of asset
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Same-asset roll-over consequences for the company (disposal case)
122-200 Consequences for the company (disposal case)
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Same-asset roll-over consequences for the company (creation case)
122-205 Consequences for the company (creation case)
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Division 124—Replacement-asset roll-overs
124-1 What this Division is about
124-5 How to find your way around this Division
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Subdivision 124-A—General rules
124-10 Your ownership of one CGT asset ends
124-15 Your ownership of more than one CGT asset ends
124-20 Share and interest sale facilities
Subdivision 124-B—Asset compulsorily acquired, lost or destroyed
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When a roll-over is available
124-70 Events giving rise to a roll-over
124-75 Other requirements if you receive money
124-80 Other requirements if you receive an asset
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The consequences of a roll-over being available
124-85 Consequences for receiving money
124-90 Consequences for receiving an asset
124-95 You receive both money and an asset
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Subdivision 124-C—Statutory licences
124-140 New statutory licences
124-145 Rollover consequences—capital gain or loss disregarded
124-150 Rollover consequences—partial roll-over
124-155 Roll-over consequences—all original licences were post-CGT
124-160 Roll-over consequences—all original licences were pre-CGT
124-165 Roll-over consequences—some original licences were pre-CGT, others were post-CGT
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Subdivision 124-D—Strata title conversion
124-190 Strata title conversion
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Subdivision 124-E—Exchange of shares or units
124-240 Exchange of shares in the same company
124-245 Exchange of units in the same unit trust
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Subdivision 124-F—Exchange of rights or options
124-295 Exchange of rights or option to acquire shares in a company
124-300 Exchange of rights or option to acquire units in a unit trust
Subdivision 124-I—Change of incorporation
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Guide to Subdivision 124-I
124-510 What this Subdivision is about
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Object of this Subdivision
124-515 Object of this Subdivision
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Change of incorporation without change of entity
124-520 Change of incorporation without change of entity
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Old corporation wound up
124-525 Old corporation wound up
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Special consequences of some roll-overs
124-530 Shares in company replacing pre-CGT and post-CGT mix of interest and rights in body
124-535 Rights as member of Indigenous corporation replacing pre-CGT and post-CGT mix of interest and rights in body
Subdivision 124-J—Crown leases
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Guide to Subdivision 124-J
124-570 What this Subdivision is about
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Operative provisions
124-575 Extension or renewal of Crown lease
124-580 Meaning of Crown lease
124-585 Original right differs in area from new right
124-590 Part of original right excised
124-595 Treating parts of new right as separate assets
124-600 What is the roll-over?
124-605 Change of lessor
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Subdivision 124-K—Depreciating assets
124-655 Roll-over for depreciating assets
124-660 Right granted to associate
Subdivision 124-L—Prospecting and mining entitlements
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Guide to Subdivision 124-L
124-700 What this Subdivision is about
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Operative provisions
124-705 Extension or renewal of prospecting or mining entitlement
124-710 Meaning of prospecting entitlement and mining entitlement
124-715 Original entitlement differs in area from new entitlement
124-720 Part of original entitlement excised
124-725 Treating parts of new entitlement as separate assets
124-730 What is the roll-over?
Subdivision 124-M—Scrip for scrip roll-over
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Guide to Subdivision 124-M
124-775 What this Subdivision is about
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Operative provisions
124-780 Replacement of shares
124-781 Replacement of trust interests
124-782 Transfer or allocation of cost base of shares acquired by acquiring entity etc.
124-783 Meaning of significant stakeholder, common stakeholder, significant stake and common stake
124-783A Rights that affect stakes
124-784 Cost base of equity or debt given within acquiring group
124-784A When arrangement is a restructure
124-784B What is the cost base and reduced cost base when arrangement is a restructure?
124-784C Cost base of equity or debt given within acquiring group
124-785 What is the roll-over?
124-790 Partial roll-over
124-795 Exceptions
124-800 Interest received for pre-CGT interest
124-810 Certain companies and trusts not regarded as having 300 members or beneficiaries
Subdivision 124-N—Disposal of assets by a trust to a company
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Guide to Subdivision 124-N
124-850 What this Subdivision is about
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Operative provisions
124-855 What this Subdivision deals with
124-860 Requirements for roll-over
124-865 Entities both choose the roll-over
124-870 Roll-over for owner of units or interests in a trust
124-875 Effect on the transferor and transferee
Subdivision 124-P—Exchange of a membership interest in an MDO for a membership interest in another MDO
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Guide to Subdivision 124-P
124-975 What this Subdivision is about
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Operative provisions
124-980 Exchange of membership interests in an MDO
124-985 What the roll-over is for post-CGT interests
124-990 Partial roll-over
124-995 Pre-CGT interests
Subdivision 124-Q—Exchange of stapled ownership interests for ownership interests in a unit trust
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Guide to Subdivision 124-Q
124-1040 What this Subdivision is about
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Operative provisions
124-1045 Exchange of stapled securities
124-1050 Conditions
124-1055 Consequences of the roll-over for exchanging members
124-1060 Consequences of the roll-over for interposed trust
Subdivision 124-R—Water entitlements
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Guide to Subdivision 124-R
124-1100 What this Subdivision is about
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Replacement case
124-1105 Replacement water entitlements roll-over
124-1110 Roll-over consequences—capital gain or loss disregarded
124-1115 Roll-over consequences—partial roll-over
124-1120 Roll-over consequences—all original entitlements post-CGT
124-1125 Roll-over consequences—all original entitlements pre-CGT
124-1130 Roll-over consequences—some original entitlements pre-CGT, others post-CGT
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Reduction case
124-1135 Reduction in water entitlements roll-over
124-1140 Roll-over consequences—capital gain or loss disregarded
124-1145 Roll-over consequences—all original entitlements post-CGT
124-1150 Roll-over consequences—some original entitlements pre-CGT, others post-CGT
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Variation to CGT asset case
124-1155 Roll-over for variation to CGT asset
124-1160 Roll-over consequences
124-1165 Roll-over consequences—partial roll-over
Subdivision 124-S—Interest realignment arrangements
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Guide to Subdivision 124-S
124-1220 What this Subdivision is about
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Operative provisions
124-1225 Disposals of interests under interest realignment arrangements
124-1230 Roll-over consequences—partial roll-over
124-1235 Roll-over consequences—all original interests were post-CGT and pre-UCA
124-1240 Roll-over consequences—all original interests were pre-CGT
124-1245 Roll-over consequences—original interests were of mixed CGT status, all were pre-UCA
124-1250 Roll-over consequences—some original interests were pre-UCA
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Division 125—Demerger relief
125-1 What this Division is about
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Subdivision 125-A—Object of this Division
125-5 Object of this Division
Subdivision 125-B—Consequences for owners of interests
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Guide to Subdivision 125-B
125-50 Guide to Subdivision 125-B
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Operative provisions
125-55 When a roll-over is available for a demerger
125-60 Meaning of ownership interest and related terms
125-65 Meanings of demerger group, head entity and demerger subsidiary
125-70 Meanings of demerger, demerged entity and demerging entity
125-75 Exceptions to subsection 125-70(2)
125-80 What is the roll-over?
125-85 Cost base adjustments where CGT event happens but no roll-over chosen
125-90 Cost base adjustments where no CGT event
125-95 No other cost base adjustment after demerger
125-100 No further demerger relief in some cases
Subdivision 125-C—Consequences for members of demerger group
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Guide to Subdivision 125-C
125-150 Guide to Subdivision 125-C
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Operative provisions
125-155 Certain capital gains or losses disregarded for demerging entity
125-160 No CGT event J1
125-165 Adjusted capital loss for value shift under a demerger
125-170 Reduced cost base reduction if demerger asset subject to roll-over
Subdivision 125-D—Public trading trusts
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Guide to Subdivision 125-D
125-225 Guide to Subdivision 125-D
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Operative provisions
125-230 Application of Division to public trading trusts
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Subdivision 125-E—Miscellaneous
125-235 Share and interest sale facilities
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Division 126—Same-asset roll-overs
126-1 What this Division is about
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Subdivision 126-A—Marriage or relationship breakdowns
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
126-25 Conditions for the purposes of subsections 126-5(3A) and 126-15(5)
Subdivision 126-B—Companies in the same wholly-owned group
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Guide to Subdivision 126-B
126-40 What this Subdivision is about
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Operative provisions
126-45 Roll-over for members of wholly-owned group
126-50 Requirements for roll-over
126-55 When there is a roll-over
126-60 Consequences of roll-over
126-75 Originating company is a CFC
126-85 Effect of roll-over on certain liquidations
Subdivision 126-C—Changes to trust deeds
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Guide to Subdivision 126-C
126-125 What this Subdivision is about
126-130 Changes to trust deeds
126-135 Consequences of roll-over
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Subdivision 126-D—Small superannuation funds
126-140 CGT event involving small superannuation funds
Subdivision 126-E—Entitlement to shares after demutualisation and scrip for scrip roll-over
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Guide to Subdivision 126-E
126-185 What this Subdivision is about
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Operative provisions
126-190 When there is a roll-over
126-195 Consequences of roll-over
Subdivision 126-G—Transfer of assets between certain trusts
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Guide to Subdivision 126-G
126-215 What this Subdivision is about
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Operative provisions
126-220 Object of this Subdivision
126-225 When a roll-over may be chosen
126-230 Beneficiaries’ entitlements not be discretionary etc.
126-235 Exceptions for roll-over
126-240 Consequences for the trusts
126-245 Consequences for beneficiaries—general approach for working out cost base etc.
126-250 Consequences for beneficiaries—other approach for working out cost base etc.
126-255 No other cost base etc. adjustment for beneficiaries
126-260 Giving information to beneficiaries
126-265 Interest sale facilities
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Division 128—Effect of death
128-1 What this Division is about
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General rules
128-10 Capital gain or loss when you die is disregarded
128-15 Effect on the legal personal representative or beneficiary
128-20 When does an asset pass to a beneficiary?
128-25 The beneficiary is a trustee of a superannuation fund etc.
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Special rules for joint tenants
128-50 Joint tenants
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Division 130—Investments
130-1 What this Division is about
Subdivision 130-A—Bonus shares and units
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Guide to Subdivision 130-A
130-15 Acquisition time and cost base of bonus equities
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Operative provisions
130-20 Issue of bonus shares or units
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Subdivision 130-B—Rights
130-40 Exercise of rights
130-45 Timing rules
130-50 Application to options
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Subdivision 130-C—Convertible interests
130-60 Shares or units acquired by converting a convertible interest
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Subdivision 130-D—Employee share schemes
130-75 Objects of Subdivision
130-80 ESS interests acquired under employee share schemes
130-85 Interests in employee share trusts
130-90 Shares held by employee share trusts
130-95 Shares and rights in relation to ESS interests
130-97 Application of certain provisions of Division 83A
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Subdivision 130-E—Exchangeable interests
130-100 Exchangeable interest
130-105 Shares acquired in exchange for the disposal or redemption of an exchangeable interest
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Subdivision 130-F—Exploration investments
130-110 Reducing the reduced cost base before disposal
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Division 132—Leases
132-1 Lessee incurs expenditure to get lease term varied or waived
132-5 Lessor pays lessee for improvements
132-10 Grant of a long-term lease
132-15 Lessee of land acquires reversionary interest of lessor
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Division 134—Options
134-1 Exercise of options
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Division 137—Granny flat arrangements
Subdivision 137-A—When CGT events do not happen
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Guide to Subdivision 137-A
137-1 What this Subdivision is about
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Operative provisions
137-10 Meaning of key terms
137-15 CGT event does not happen when a certain kind of granny flat arrangement is entered into
137-20 CGT event does not happen when a certain kind of granny flat arrangement is varied
137-25 CGT event does not happen when a certain kind of granny flat arrangement is terminated
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Division 149—When an asset stops being a pre-CGT asset
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Subdivision 149-A—Key concepts
149-10 What is a pre-CGT asset?
149-15 Majority underlying interests in a CGT asset
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Subdivision 149-B—When asset of non-public entity stops being a pre-CGT asset
149-25 Which entities are affected
149-30 Effects if asset no longer has same majority underlying ownership
149-35 Cost base elements of asset that stops being a pre-CGT asset
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Subdivision 149-C—When asset of public entity stops being a pre-CGT asset
149-50 Which entities are affected
149-55 Entity to give the Commissioner evidence periodically as to whether asset still has same majority underlying ownership
149-60 What the evidence must show
149-70 Effects if asset no longer has same majority underlying ownership
149-75 Cost base elements of asset that stops being a pre-CGT asset
149-80 No more evidence needed after asset stops being a pre-CGT asset
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Subdivision 149-F—How to treat a “demutualised” public entity
149-162 Subdivision applies only if entity gives sufficient evidence
149-165 Members treated as having underlying interests in assets until demutualisation
149-170 Effect of demutualisation of interposed company
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Division 152—Small business relief
152-1 What this Division is about
Subdivision 152-A—Basic conditions for relief under this Division
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Guide to Subdivision 152-A
152-5 What this Subdivision is about
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Basic conditions for relief
152-10 Basic conditions for relief
152-12 Special conditions for CGT event D1
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Maximum net asset value test
152-15 Maximum net asset value test
152-20 Meaning of net value of the CGT assets
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Active asset test
152-35 Active asset test
152-40 Meaning of active asset
152-45 Continuing time periods for involuntary disposals
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Treatment of passively held CGT assets
152-47 Spouses or children taken to be affiliates for certain passively held CGT assets
152-48 Working out an entity’s aggregated turnover for passively held CGT assets
152-49 Businesses that are winding up
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Significant individual test
152-50 Significant individual test
152-55 Meaning of significant individual
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CGT concession stakeholder
152-60 Meaning of CGT concession stakeholder
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Small business participation percentage
152-65 Small business participation percentage
152-70 Direct small business participation percentage
152-75 Indirect small business participation percentage
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Nomination of controllers of discretionary trust
152-78 Trustee of discretionary trust may nominate beneficiaries to be controllers of trust
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CGT event happens to asset or interest within 2 years of an individual’s death
152-80 CGT event happens to an asset or interest within 2 years of individual’s death
Subdivision 152-B—Small business 15-year exemption
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Guide to Subdivision 152-B
152-100 What this Subdivision is about
152-105 15-year exemption for individuals
152-110 15-year exemption for companies and trusts
152-115 Continuing time periods for involuntary disposals
152-125 Payments to company’s or trust’s CGT concession stakeholders are exempt
Subdivision 152-C—Small business 50% reduction
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Guide to Subdivision 152-C
152-200 What this Subdivision is about
152-205 You get the small business 50% reduction
152-210 You may also get the small business retirement exemption and small business roll-over relief
152-215 15-year rule has priority
152-220 You may choose not to apply this Subdivision
Subdivision 152-D—Small business retirement exemption
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Guide to Subdivision 152-D
152-300 What this Subdivision is about
152-305 Choosing the exemption
152-310 Consequences of choice
152-315 Choosing the amount to disregard
152-320 Meaning of CGT retirement exemption limit
152-325 Company or trust conditions
152-330 15-year rule has priority
Subdivision 152-E—Small business roll-over
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Guide to Subdivision 152-E
152-400 What this Subdivision is about
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Operative provisions
152-410 When you can obtain the roll-over
152-415 What the roll-over consists of
152-420 Rules where an individual who has obtained a roll-over dies
152-430 15-year rule has priority
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Part 3-5—Corporate taxpayers and corporate distributions
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Division 160—Corporate loss carry back tax offset for 2020-21 or 2021-22 for businesses with turnover under $5 billion
160-1 What this Division is about
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Subdivision 160-A—Entitlement to and amount of loss carry back tax offset
160-5 Entitlement to loss carry back tax offset
160-10 Amount of loss carry back tax offset
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Subdivision 160-B—Loss carry back choice
160-15 Loss carry back choice
160-20 Entity must have had turnover less than $5 billion for loss year
160-25 Entity must have been a corporate tax entity during relevant years
160-30 Transferred tax losses, income tax liabilities etc. not included
160-35 Integrity rule—no loss carry back tax offset if scheme entered into
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Division 164—Non-share capital accounts for companies
164-1 What this Division is about
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Operative provisions
164-5 Object
164-10 Non-share capital account
164-15 Credits to non-share capital account
164-20 Debits to non-share capital account
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Division 165—Income tax consequences of changing ownership or control of a company
165-1 What this Division is about
Subdivision 165-A—Deducting tax losses of earlier income years
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Guide to Subdivision 165-A
165-5 What this Subdivision is about
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Operative provisions
165-10 To deduct a tax loss
165-12 Company must maintain the same owners
165-13 Alternatively, the company must satisfy the business continuity test
165-15 The same people must control the voting power, or the company must satisfy the business continuity test
165-20 When company can deduct part of a tax loss
Subdivision 165-B—Working out the taxable income and tax loss for the income year of the change
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Guide to Subdivision 165-B
165-23 What this Subdivision is about
165-25 Summary of this Subdivision
165-30 Flow chart showing the application of this Subdivision
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When a company must work out its taxable income and tax loss under this Subdivision
165-35 On a change of ownership, unless the company satisfies the business continuity test
165-37 Who has more than a 50% stake in the company during a period
165-40 On a change of control of the voting power in the company, unless the company satisfies the business continuity test
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Working out the company’s taxable income
165-45 First, divide the income year into periods
165-50 Next, calculate the notional loss or notional taxable income for each period
165-55 How to attribute deductions to periods
165-60 How to attribute assessable income to periods
165-65 How to calculate the company’s taxable income for the income year
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Working out the company’s tax loss
165-70 How to calculate the company’s tax loss for the income year
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Special rules that apply if the company is in partnership
165-75 How to calculate the company’s notional loss or notional taxable income for a period when the company was a partner
165-80 How to calculate the company’s share of a partnership’s notional loss or notional net income for a period if both entities have the same income year
165-85 How to calculate the company’s share of a partnership’s notional loss or notional net income for a period if the entities have different income years
165-90 Company’s full year deductions include a share of partnership’s full year deductions
Subdivision 165-CA—Applying net capital losses of earlier income years
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Guide to Subdivision 165-CA
165-93 What this Subdivision is about
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Operative provisions
165-96 When a company cannot apply a net capital loss
Subdivision 165-CB—Working out the net capital gain and the net capital loss for the income year of the change
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Guide to Subdivision 165-CB
165-99 What this Subdivision is about
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When a company must work out its net capital gain and net capital loss under this Subdivision
165-102 On a change of ownership, or of control of voting power, unless the company satisfies the business continuity test
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Working out the company’s net capital gain and net capital loss
165-105 First, divide the income year into periods
165-108 Next, calculate the notional net capital gain or notional net capital loss for each period
165-111 How to work out the company’s net capital gain
165-114 How to work out the company’s net capital loss
Subdivision 165-CC—Change of ownership or control of company that has an unrealised net loss
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Guide to Subdivision 165-CC
165-115 What this Subdivision is about
165-115AA Special rules to save compliance costs
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Operative provisions
165-115A Application of Subdivision
165-115B What happens when the company makes a capital loss or becomes entitled to a deduction in respect of a CGT asset after a changeover time
165-115BA What happens when a CGT event happens after a changeover time to a CGT asset of the company that is trading stock
165-115BB Order of application of assets: residual unrealised net loss
165-115C Changeover time—change in ownership of company
165-115D Changeover time—change in control of company
165-115E What is an unrealised net loss
165-115F Notional gains and losses
Subdivision 165-CD—Reductions after alterations in ownership or control of loss company
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Guide to Subdivision 165-CD
165-115GA What this Subdivision is about
165-115GB When adjustments must be made
165-115GC How adjustments are calculated
165-115H How this Subdivision applies
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Operative provisions
165-115J Object of Subdivision
165-115K Application and interpretation
165-115L Alteration time—alteration in ownership of company
165-115M Alteration time—alteration in control of company
165-115N Alteration time—declaration by liquidator or administrator
165-115P Notional alteration time—disposal of interests in company within 12 months before alteration time
165-115Q Notional alteration time—disposal of interests in company earlier than 12 months before alteration time
165-115R When company is a loss company at first or only alteration time in income year
165-115S When company is a loss company at second or later alteration time in income year
165-115T Reduction of certain amounts included in company’s overall loss at alteration time
165-115U Adjusted unrealised loss
165-115V Notional losses
165-115W Calculation of trading stock decrease
165-115X Relevant equity interest
165-115Y Relevant debt interest
165-115Z What constitutes a controlling stake in a company
165-115ZA Reductions and other consequences if entity has relevant equity interest or relevant debt interest in loss company immediately before alteration time
165-115ZB Adjustment amounts for the purposes of section 165-115ZA
165-115ZC Notices to be given
165-115ZD Adjustment (or further adjustment) for interest realised at a loss after global method has been used
Subdivision 165-C—Deducting bad debts
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Guide to Subdivision 165-C
165-117 What this Subdivision is about
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Operative provisions
165-119 Application of Subdivision
165-120 To deduct a bad debt
165-123 Company must maintain the same owners
165-126 Alternatively, the company must satisfy the business continuity test
165-129 Same people must control the voting power, or the company must satisfy the business continuity test
165-132 When tax losses resulting from bad debts cannot be deducted
Subdivision 165-D—Tests for finding out whether the company has maintained the same owners
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The primary and alternative tests
165-150 Who has more than 50% of the voting power in the company
165-155 Who has rights to more than 50% of the company’s dividends
165-160 Who has rights to more than 50% of the company’s capital distributions
165-165 Rules about tests for a condition or occurrence of a circumstance
165-175 Tests can be satisfied by a single person
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Rules affecting the operation of the tests
165-180 Arrangements affecting beneficial ownership of shares
165-185 Shares treated as not having carried rights
165-190 Shares treated as always having carried rights
165-200 Rules do not affect totals of shares, units in unit trusts or rights carried by shares and units
165-202 Shares held by government entities and charities etc.
165-203 Companies where no shares have been issued
165-205 Death of share owner
165-207 Trustees of family trusts
165-208 Companies in liquidation etc.
165-209 Dual listed companies
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Subdivision 165-E—Business continuity test
165-210 The business continuity test—carrying on the same business
165-211 The business continuity test—carrying on a similar business
165-212D Restructure of MDOs etc.
165-212E Entry history rule does not apply for the purposes of sections 165-210 and 165-211
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Subdivision 165-F—Special provisions relating to ownership by non-fixed trusts
165-215 Special alternative to change of ownership test for Subdivision 165-A
165-220 Special alternative to change of ownership test for Subdivision 165-B
165-225 Special way of dividing the income year under Subdivision 165-B
165-230 Special alternative to change of ownership test for Subdivision 165-C
165-235 Information about non-fixed trusts with interests in company
165-240 Notices where requirements of section 165-235 are met
165-245 When an entity has a fixed entitlement to income or capital of a company
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Subdivision 165-G—Other special provisions
165-250 Control of companies in liquidation etc.
165-255 Incomplete periods
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Division 166—Income tax consequences of changing ownership or control of a widely held or eligible Division 166 company
166-1 What this Division is about
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Subdivision 166-AA—The object of this Division
166-3 The object of this Division
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Subdivision 166-A—Deducting tax losses of earlier income years
166-5 How Subdivision 165-A applies to a widely held or eligible Division 166 company
166-15 Companies can choose that this Subdivision is not to apply to them
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Subdivision 166-B—Working out the taxable income, tax loss, net capital gain and net capital loss for the income year of the change
166-20 How Subdivisions 165-B and 165-CB apply to a widely held or eligible Division 166 company
166-25 How to work out the taxable income, tax loss, net capital gain and net capital loss
166-35 Companies can choose that this Subdivision is not to apply to them
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Subdivision 166-C—Deducting bad debts
166-40 How Subdivision 165-C applies to a widely held or eligible Division 166 company
166-50 Companies can choose that this Subdivision is not to apply to them
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Subdivision 166-CA—Changeover times and alteration times
166-80 How Subdivision 165-CC or 165-CD applies to a widely held or eligible Division 166 company
166-90 Companies can choose that this Subdivision is not to apply to them
Subdivision 166-D—Tests for finding out whether the widely held or eligible Division 166 company has maintained the same owners
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Guide to Subdivision 166-D
166-135 What this Subdivision is about
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The ownership tests: substantial continuity of ownership
166-145 The ownership tests: substantial continuity of ownership
166-165 Relationship with rules in Division 165
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Corporate change in a company
166-175 Corporate change in a company
Subdivision 166-E—Concessional tracing rules
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Guide to Subdivision 166-E
166-215 What this Subdivision is about
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Application of this Subdivision
166-220 Application of this Subdivision
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Stakes of less than 10% in the tested company
166-225 Direct stakes of less than 10% in the tested company
166-230 Indirect stakes of less than 10% in the tested company
166-235 Voting, dividend and capital stakes
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Stakes held directly and/or indirectly by widely held companies
166-240 Stakes held directly and/or indirectly by widely held companies
166-245 Stakes held by other entities
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When identity of foreign stakeholders is not known
166-255 Bearer shares in foreign listed companies
166-260 Depository entities holding stakes in foreign listed companies
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Other rules relating to voting power and rights
166-265 Persons who actually control voting power or have rights are taken not to control power or have rights
166-270 Single notional entity stakeholders taken to have minimum voting control, dividend rights and capital rights
166-272 Same shares or interests to be held
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When the rules in this Subdivision do not apply
166-275 Rules in this Subdivision intended to be concessional
166-280 Controlled test companies
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Division 167—Companies whose shares carry unequal rights to dividends, capital distributions or voting power
167-1 What this Division is about
Subdivision 167-A—Rights to dividends or capital distributions
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Guide to Subdivision 167-A
167-5 What this Subdivision is about
167-7 Simplified outline of this Subdivision
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Operative provisions
167-10 When this Subdivision applies
167-15 First way—disregard debt interests
167-20 Second way—also disregard secondary share classes
167-25 Third way—treat remaining shares as having fixed rights to dividends and capital distributions
167-30 Fixing rights if practicable to work out market values
167-35 Fixing rights if impracticable to work out market values etc.
167-40 The valuing times for conditions listed in subsection 167-10(1)
Subdivision 167-B—Voting power
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Guide to Subdivision 167-B
167-75 What this Subdivision is about
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Operative provisions
167-80 When this Subdivision applies
167-85 Different method for working out voting power
167-90 Dual listed companies
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Division 170—Treatment of certain company groups for income tax purposes
Subdivision 170-A—Transfer of tax losses within certain wholly-owned groups of companies
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Guide to Subdivision 170-A
170-1 What this Subdivision is about
170-5 Basic principles for transferring tax losses
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Effect of transferring a tax loss
170-10 When a company can transfer a tax loss
170-15 Income company is taken to have incurred transferred loss
170-20 Who can deduct transferred loss
170-25 Tax treatment of consideration for transferred tax loss
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Conditions for transfer
170-30 Companies must be in existence and members of the same wholly-owned group etc.
170-32 Tax loss incurred by the loss company because of a transfer under Subdivision 707-A
170-33 Alternative test of relations between the loss company and other companies
170-35 The loss company
170-40 The income company
170-42 If the income company has become the head company of a consolidated group or MEC group
170-45 Maximum amount that can be transferred
170-50 Transfer by written agreement
170-55 Losses must be transferred in order they are incurred
170-60 Income company cannot transfer transferred tax loss
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Effect of agreement to transfer more than can be transferred
170-65 Agreement transfers as much as can be transferred
170-70 Amendment of assessments
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Australian permanent establishments of foreign financial entities
170-75 Treatment like Australian branches of foreign banks
Subdivision 170-B—Transfer of net capital losses within certain wholly-owned groups of companies
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Guide to Subdivision 170-B
170-101 What this Subdivision is about
170-105 Basic principles for transferring a net capital loss
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Effect of transferring a net capital loss
170-110 When a company can transfer a net capital loss
170-115 Who can apply transferred loss
170-120 Gain company is taken to have made transferred loss
170-125 Tax treatment of consideration for transferred tax loss
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Conditions for transfer
170-130 Companies must be in existence and members of the same wholly-owned group etc.
170-132 Net capital loss made by the loss company because of a transfer under Subdivision 707-A
170-133 Alternative test of relations between the loss company and other companies
170-135 The loss company
170-140 The gain company
170-142 If the gain company has become the head company of a consolidated group or MEC group
170-145 Maximum amount that can be transferred
170-150 Transfer by written agreement
170-155 Losses must be transferred in order they are made
170-160 Gain company cannot transfer transferred net capital loss
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Effect of agreement to transfer more than can be transferred
170-165 Agreement transfers as much as can be transferred
170-170 Amendment of assessments
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Australian permanent establishments of foreign financial entities
170-174 Treatment like Australian branches of foreign banks
Subdivision 170-C—Provisions applying to both transfers of tax losses and transfers of net capital losses within wholly-owned groups of companies
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Guide to Subdivision 170-C
170-201 What this Subdivision is about
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Operative provisions
170-205 Object of Subdivision
170-210 Transfer of tax loss: direct and indirect interests in the loss company
170-215 Transfer of tax loss: direct and indirect interests in the income company
170-220 Transfer of net capital loss: direct and indirect interests in the loss company
170-225 Transfer of net capital loss: direct and indirect interests in the gain company
Subdivision 170-D—Transactions by a company that is a member of a linked group
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Guide to Subdivision 170-D
170-250 What this Subdivision is about
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Operative provisions
170-255 Application of Subdivision
170-260 Linked group
170-265 Connected entity
170-270 Immediate consequences for originating company
170-275 Subsequent consequences for originating company
170-280 What happens if certain events happen in respect of the asset
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Division 175—Use of a company’s tax losses or deductions to avoid income tax
175-1 What this Division is about
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Subdivision 175-A—Tax benefits from unused tax losses
175-5 When Commissioner can disallow deduction for tax loss
175-10 First case: income or capital gain injected into company because of available tax loss
175-15 Second case: someone else obtains a tax benefit because of tax loss available to company
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Subdivision 175-B—Tax benefits from unused deductions
175-20 Income or capital gain injected into company because of available deductions
175-25 Deduction injected into company because of available income or capital gain
175-30 Someone else obtains a tax benefit because of a deduction, income or capital gain available to company
175-35 Tax loss resulting from disallowed deductions
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Subdivision 175-CA—Tax benefits from unused net capital losses of earlier income years
175-40 When Commissioner can disallow net capital loss of earlier income year
175-45 First case: capital gain injected into company because of available net capital loss
175-50 Second case: someone else obtains a tax benefit because of net capital loss available to company
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Subdivision 175-CB—Tax benefits from unused capital losses of the current year
175-55 When Commissioner can disallow capital loss of current year
175-60 Capital gain injected into company because of available capital loss
175-65 Capital loss injected into company because of available capital gain
175-70 Someone else obtains a tax benefit because of capital loss or gain available to company
175-75 Net capital loss resulting from disallowed capital losses
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Subdivision 175-C—Tax benefits from unused bad debt deductions
175-80 When Commissioner can disallow deduction for bad debt
175-85 First case: income or capital gain injected into company because of available bad debt
175-90 Second case: someone else obtains a tax benefit because of bad debt deduction available to company
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Subdivision 175-D—Common rules
175-95 When a person has a shareholding interest in the company
175-100 Commissioner may disallow excluded losses etc. of insolvent companies
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Division 180—Information about family trusts with interests in companies
180-1 What this Division is about
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Subdivision 180-A—Information relevant to Division 165
180-5 Information about family trusts with interests in companies
180-10 Notice where requirements of section 180-5 are met
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Subdivision 180-B—Information relevant to Division 175
180-15 Information about family trusts with interests in companies
180-20 Notice where requirements of section 180-15 are met
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Division 195—Special types of company
Subdivision 195-A—Pooled development funds (PDFs)
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Guide to Subdivision 195-A
195-1 What this Subdivision is about
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Working out a PDF’s taxable income and tax loss
195-5 Deductibility of PDF tax losses
195-10 PDF cannot transfer tax loss
195-15 Tax loss for year in which company becomes a PDF
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Working out a PDF’s net capital gain and net capital loss
195-25 Applying a PDF’s net capital losses
195-30 PDF cannot transfer net capital loss
195-35 Net capital loss for year in which company becomes a PDF
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Working out a PDF’s loss carry back tax offset
195-37 PDF cannot carry back tax loss
Subdivision 195-B—Limited partnerships
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Guide to Subdivision 195-B
195-60 What this Subdivision is about
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Operative provisions
195-65 Tax losses cannot be transferred to a VCLP, an ESVCLP, an AFOF or a VCMP
195-70 Previous tax losses can be deducted after ceasing to be a VCLP, an ESVCLP, an AFOF or a VCMP
195-72 Tax losses cannot be carried back to before ceasing to be a VCLP, an ESVCLP, an AFOF or a VCMP
195-75 Determinations to take account of income years of less than 12 months
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Division 197—Tainted share capital accounts
197-1 What this Division is about
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Subdivision 197-A—What transfers into a company’s share capital account does this Division apply to?
197-5 Division generally applies to an amount transferred to share capital account from another account
197-10 Exclusion for amounts that could be identified as share capital
197-15 Exclusion for amounts transferred under debt/equity swaps
197-20 Exclusion for amounts transferred leading to there being no shares with a par value—non-Corporations Act companies
197-25 Exclusion for transfers from option premium reserves
197-30 Exclusion for transfers made in connection with demutualisations of non-insurance etc. companies
197-35 Exclusion for transfers made in connection with demutualisations of insurance etc. companies
197-37 Exclusion for transfers made in connection with demutualisations of private health insurers
197-38 Exclusion for transfers connected with demutualisations of friendly society health or life insurers
197-40 Exclusion for post-demutualisation transfers relating to life insurance companies
197-42 Exclusion for exploration credits
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Subdivision 197-B—Consequence of transfer: franking debit arises
197-45 A franking debit arises in relation to the transfer
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Subdivision 197-C—Consequence of transfer: tainting of share capital account
197-50 The share capital account becomes tainted (if it is not already tainted)
197-55 Choosing to untaint a tainted share capital account
197-60 Choosing to untaint—liability to untainting tax
197-65 Choosing to untaint—further franking debits may arise
197-70 Due date for payment of untainting tax
197-75 General interest charge for late payment of untainting tax
197-80 Notice of liability to pay untainting tax
197-85 Evidentiary effect of notice of liability to pay untainting tax
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Volume 5
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Chapter 3—Specialist liability rules
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Part 3-6—The imputation system
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Division 200—Guide to Part 3-6
200-1 What this Division is about
200-5 The imputation system
200-10 Franking a distribution
200-15 The franking account
200-20 How a distribution is franked
200-25 A corporate tax entity must not give its members credit for more tax than the entity has paid
200-30 Benchmark rule
200-35 Effect of receiving a franked distribution
200-40 An Australian corporate tax entity can pass the benefit of having received a franked distribution on to its members
200-45 Special rules for franking by some entities
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Division 201—Objects and application of Part 3-6
201-1 Objects
201-5 Application of this Part
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Division 202—Franking a distribution
Subdivision 202-A—Franking a distribution
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Guide to Subdivision 202-A
202-1 What this Subdivision is about
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Operative provisions
202-5 Franking a distribution
Subdivision 202-B—Who can frank a distribution?
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Guide to Subdivision 202-B
202-10 What this Subdivision is about
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Operative provisions
202-15 Franking entities
202-20 Residency requirement when making a distribution
Subdivision 202-C—Which distributions can be franked?
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Guide to Subdivision 202-C
202-25 What this Subdivision is about
202-30 Frankable distributions
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Operative provisions
202-35 Object
202-40 Frankable distributions
202-45 Unfrankable distributions
202-47 Distributions of certain ADI profits following restructure
Subdivision 202-D—Amount of the franking credit on a distribution
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Guide to Subdivision 202-D
202-50 What this Subdivision is about
202-55 What is the maximum franking credit for a frankable distribution?
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Operative provisions
202-60 Amount of the franking credit on a distribution
202-65 Where the franking credit stated in the distribution statement exceeds the maximum franking credit for the distribution
Subdivision 202-E—Distribution statements
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Guide to Subdivision 202-E
202-70 What this Subdivision is about
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Operative provisions
202-75 Obligation to give a distribution statement
202-80 Distribution statement
202-85 Changing the franking credit on a distribution by amending the distribution statement
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Division 203—Benchmark rule
203-1 What this Division is about
203-5 Benchmark rule
203-10 Benchmark franking percentage
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Operative provisions
203-15 Object
203-20 Application of the benchmark rule
203-25 Benchmark rule
203-30 Setting a benchmark franking percentage
203-35 Franking percentage
203-40 Franking periods—where the entity is not a private company
203-45 Franking period—private companies
203-50 Consequences of breaching the benchmark rule
203-55 Commissioner’s powers to permit a departure from the benchmark rule
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Division 204—Anti-streaming rules
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Subdivision 204-A—Objects and application
204-1 Objects
204-5 Application
Subdivision 204-B—Linked distributions
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Guide to Subdivision 204-B
204-10 What this Subdivision is about
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Operative provisions
204-15 Linked distributions
Subdivision 204-C—Substituting tax-exempt bonus share for franked distributions
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Guide to Subdivision 204-C
204-20 What this Subdivision is about
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Operative provisions
204-25 Substituting tax-exempt bonus shares for franked distributions
Subdivision 204-D—Streaming distributions
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Guide to Subdivision 204-D
204-26 What this Subdivision is about
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Operative provisions
204-30 Streaming distributions
204-35 When does a franking debit arise if the Commissioner makes a determination under paragraph 204-30(3)(a)
204-40 Amount of the franking debit
204-41 Amount of the exempting debit
204-45 Effect of a determination about distributions to favoured members
204-50 Assessment and notice of determination
204-55 Right to review where a determination made
Subdivision 204-E—Disclosure requirements
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Guide to Subdivision 204-E
204-65 What this Subdivision is about
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Operative provisions
204-70 Application of this Subdivision
204-75 Notice to the Commissioner
204-80 Commissioner may require information where the Commissioner suspects streaming
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Division 205—Franking accounts, franking deficit tax liabilities and the related tax offset
205-1 What this Division is about
205-5 Franking accounts, franking deficit tax liabilities and the related tax offset
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Operative provisions
205-10 Each entity that is or has been a corporate tax entity has a franking account
205-15 Franking credits
205-20 Paying a PAYG instalment, income tax or diverted profits 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 or diverted profits tax
205-40 Franking surplus and deficit
205-45 Franking deficit tax
205-50 Deferring franking deficit
205-70 Tax offset arising from franking deficit tax liabilities
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Division 207—Effect of receiving a franked distribution
207-5 Overview
Subdivision 207-A—Effect of receiving a franked distribution generally
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Guide to Subdivision 207-A
207-10 What this Subdivision is about
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Operative provisions
207-15 Applying the general rule
207-20 General rule—gross-up and tax offset
Subdivision 207-B—Franked distribution received through certain partnerships and trustees
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Guide to Subdivision 207-B
207-25 What this Subdivision is about
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Gross-up and tax offset
207-30 Applying this Subdivision
207-35 Gross-up—distribution made to, or flows indirectly through, a partnership or trustee
207-37 Attributable franked distribution—trusts
207-45 Tax offset—distribution flows indirectly to an entity
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Key concepts
207-50 When a franked distribution flows indirectly to or through an entity
207-55 Share of a franked distribution
207-57 Share of the franking credit on a franked distribution
207-58 Specifically entitled to an amount of a franked distribution
207-59 Franked distributions within class treated as single franked distribution
Subdivision 207-C—Residency requirements for the general rule
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Guide to Subdivision 207-C
207-60 What this Subdivision is about
207-65 Satisfying the residency requirement
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Operative provisions
207-70 Gross-up and tax offset under section 207-20
207-75 Residency requirement
Subdivision 207-D—No gross-up or tax offset where distribution would not be taxed
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Guide to Subdivision 207-D
207-80 What this Subdivision is about
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Operative provisions
207-85 Applying this Subdivision
207-90 Distribution that is made to an entity
207-95 Distribution that flows indirectly to an entity
Subdivision 207-E—Exceptions to the rules in Subdivision 207-D
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Guide to Subdivision 207-E
207-105 What this Subdivision is about
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Operative provisions
207-110 Effect of non-assessable income on gross up and tax offset
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Exempt institutions
207-115 Which exempt institutions are eligible for a refund?
207-117 Residency requirement
207-119 Entity not treated as exempt institution eligible for refund in certain circumstances
207-120 Entity may be ineligible because of a distribution event
207-122 Entity may be ineligible if distribution is in the form of property other than money
207-124 Entity may be ineligible if other money or property also acquired
207-126 Entity may be ineligible if distributions do not match trust share amounts
207-128 Reinvestment choice
207-130 Controller’s liability
207-132 Treatment of benefits provided by an entity to a controller
207-134 Entity’s present entitlement disregarded in certain circumstances
207-136 Review of certain decisions
Subdivision 207-F—No gross-up or tax offset where the imputation system has been manipulated
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Guide to Subdivision 207-F
207-140 What this Subdivision is about
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Operative provisions
207-145 Distribution that is made to an entity
207-150 Distribution that flows indirectly to an entity
207-155 When is a distribution made as part of a dividend stripping operation?
207-157 Distribution washing
207-158 Distributions entitled to a foreign income tax deduction
207-160 Distribution that is treated as an interest payment
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Division 208—Exempting entities and former exempting entities
208-5 What is an exempting entity?
208-10 Former exempting entities
208-15 Distributions by exempting entities and former exempting entities
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Subdivision 208-A—What are exempting entities and former exempting entities?
208-20 Exempting entities
208-25 Effective ownership of entity by prescribed persons
208-30 Accountable membership interests
208-35 Accountable partial interests
208-40 Prescribed persons
208-45 Persons who are taken to be prescribed persons
208-50 Former exempting companies
Subdivision 208-B—Franking with an exempting credit
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Guide to Subdivision 208-B
208-55 What this Subdivision is about
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Operative provisions
208-60 Franking with an exempting credit
Subdivision 208-C—Amount of the exempting credit on a distribution
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Guide to Subdivision 208-C
208-65 What this Subdivision is about
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Operative provisions
208-70 Amount of the exempting credit on a distribution
Subdivision 208-D—Distribution statements
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Guide to Subdivision 208-D
208-75 Guide to Subdivision 208-D
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Operative provisions
208-80 Additional information to be included by a former exempting entity or exempting entity
Subdivision 208-E—Distributions to be franked with exempting credits to the same extent
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Guide to Subdivision 208-E
208-85 What this Subdivision is about
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Operative provisions
208-90 All frankable distributions made within a franking period must be franked to the same extent with an exempting credit
208-95 Exempting percentage
208-100 Consequences of breaching the rule in section 208-90
Subdivision 208-F—Exempting accounts and franking accounts of exempting entities and former exempting entities
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Guide to Subdivision 208-F
208-105 What this Subdivision is about
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Operative provisions
208-110 Exempting account
208-115 Exempting credits
208-120 Exempting debits
208-125 Exempting surplus and deficit
208-130 Franking credits arising because of status as exempting entity or former exempting entity
208-135 Relationships that will give rise to a franking credit under item 5 of the table in section 208-130
208-140 Membership of the same effectively wholly-owned group
208-145 Franking debits arising because of status as exempting entity or former exempting entity
208-150 Residency requirement
208-155 Eligible continuing substantial member
208-160 Distributions that are affected by a manipulation of the imputation system
208-165 Amount of the exempting credit or franking credit arising because of a distribution franked with an exempting credit
208-170 Where a determination under paragraph 177EA(5)(b) of the Income Tax Assessment Act 1936 affects part of the distribution
208-175 When does a distribution franked with an exempting credit flow indirectly to an entity?
208-180 What is an entity’s share of the exempting credit on a distribution?
208-185 Minister may convert exempting surplus to franking credit of former exempting entity previously owned by the Commonwealth
Subdivision 208-G—Tax effects of distributions by exempting entities
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Guide to Subdivision 208-G
208-190 What this Subdivision is about
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Operative provisions
208-195 Division 207 does not generally apply
208-200 Distributions to exempting entities
208-205 Distributions to employees acquiring shares under eligible employee share schemes
208-215 Eligible employee share schemes
Subdivision 208-H—Tax effect of a distribution franked with an exempting credit
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Guide to Subdivision 208-H
208-220 What this Subdivision is about
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Operative provisions
208-225 Division 207 does not generally apply
208-230 Distributions to exempting entities and former exempting entities
208-235 Distributions to employees acquiring shares under eligible employee share schemes
208-240 Distributions to certain individuals
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Division 210—Venture capital franking
210-1 Purpose of venture capital franking
210-5 How is this achieved?
210-10 What is a venture capital credit?
210-15 What does the PDF have to do to distribute the credits?
210-20 Limits on venture capital franking
Subdivision 210-A—Franking a distribution with a venture capital credit
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Guide to Subdivision 210-A
210-25 What this Subdivision is about
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Operative provisions
210-30 Franking a distribution with a venture capital credit
Subdivision 210-B—Participating PDFs
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Guide to Subdivision 210-B
210-35 What this Subdivision is about
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Operative provisions
210-40 What is a participating PDF
Subdivision 210-C—Distributions that are frankable with a venture capital credit
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Guide to Subdivision 210-C
210-45 What this Subdivision is about
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Operative provisions
210-50 Which distributions can be franked with a venture capital credit?
Subdivision 210-D—Amount of the venture capital credit on a distribution
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Guide to Subdivision 210-D
210-55 What this Subdivision is about
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Operative provisions
210-60 Amount of the venture capital credit on a distribution
Subdivision 210-E—Distribution statements
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Guide to Subdivision 210-E
210-65 What this Subdivision is about
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Operative provisions
210-70 Additional information to be included when a distribution is franked with a venture capital credit
Subdivision 210-F—Rules affecting the allocation of venture capital credits
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Guide to Subdivision 210-F
210-75 What this Subdivision is about
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Operative provisions
210-80 Draining the venture capital surplus when a distribution frankable with venture capital credits is made
210-81 Distributions to be franked with venture capital credits to the same extent
210-82 Consequences of breaching the rule in section 210-81
Subdivision 210-G—Venture capital sub-account
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Guide to Subdivision 210-G
210-85 What this Subdivision is about
210-90 The venture capital sub-account
210-95 Venture capital deficit tax
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Operative provisions
210-100 Venture capital sub-account
210-105 Venture capital credits
210-110 Determining the extent to which a franking credit is reasonably attributable to a particular payment of tax
210-115 Participating PDF may elect to have venture capital credits arise on its assessment day
210-120 Venture capital debits
210-125 Venture capital debit where CGT limit is exceeded
210-130 Venture capital surplus and deficit
210-135 Venture capital deficit tax
210-140 Effect of a liability to pay venture capital deficit tax on franking deficit tax
210-145 Effect of a liability to pay venture capital deficit tax on the franking account
210-150 Deferring venture capital deficit
Subdivision 210-H—Effect of receiving a distribution franked with a venture capital credit
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Guide to Subdivision 210-H
210-155 What this Subdivision is about
210-160 The significance of a venture capital credit
210-165 Recipients for whom the venture capital credit is not significant
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Operative provisions
210-170 Tax offset for certain recipients of distributions franked with venture capital credits
210-175 Amount of the tax offset
210-180 Application of Division 207 where the recipient is entitled to a tax offset under section 210-170
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Division 214—Administering the imputation system
214-1 Purpose of the system
214-5 Key features
Subdivision 214-A—Franking returns
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Guide to Subdivision 214-A
214-10 What this Subdivision is about
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Operative provisions
214-15 Requirement to give franking return—general
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
Subdivision 214-B—Franking assessments
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Guide to Subdivision 214-B
214-55 What this Subdivision is about
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Operative provisions
214-60 Commissioner may make a franking assessment
214-65 Commissioner taken to have made a franking assessment on first return
214-70 Part-year assessment
214-75 Validity of assessment
214-80 Objections
Subdivision 214-C—Amending franking assessments
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Guide to Subdivision 214-C
214-90 What this Subdivision is about
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Operative provisions
214-95 Amendments within 3 years of the original assessment
214-100 Amended assessments are treated as franking assessments
214-105 Further return as a result of a refund affecting a franking deficit tax liability
214-110 Later amendments—on request
214-115 Later amendments—failure to make proper disclosure
214-120 Later amendments—fraud or evasion
214-125 Further amendment of an amended particular
214-135 Amendment on review etc.
214-140 Notice of amendments
Subdivision 214-D—Collection and recovery
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Guide to Subdivision 214-D
214-145 What this Subdivision is about
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Operative provisions
214-150 Due date for payment of franking tax
214-155 General interest charge
214-160 Refunds of amounts overpaid
Subdivision 214-E—Records
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Guide to Subdivision 214-E
214-170 What this Subdivision is about
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Operative provisions
214-175 Record keeping
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Division 215—Consequences of the debt/equity rules
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Subdivision 215-A—Application of the imputation system to non-share equity interests
215-1 Application of the imputation system to non-share equity interests
Subdivision 215-B—Non-share dividends that are unfrankable to some extent
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Guide to Subdivision 215-B
215-5 What this Subdivision is about
215-10 Certain non-share dividends by ADIs unfrankable
215-15 Non-share dividends are unfrankable if profits are unavailable
215-20 Working out the available frankable profits
215-25 Anticipating available frankable profits
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Division 216—Cum dividend sales and securities lending arrangements
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Subdivision 216-A—Circumstances where a distribution to a member of a corporate tax entity is treated as having been made to someone else
216-1 When a distribution made to a member of a corporate tax entity is treated as having been made to someone else
216-5 First situation (cum dividend sales)
216-10 Second situation (securities lending arrangements)
216-15 Distribution closing time
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Subdivision 216-B—Statements to be made where there is a cum dividend sale or securities lending arrangement
216-20 Cum dividend sale—statement by securities dealer
216-25 Cum dividend sale—statement by party
216-30 Securities lending arrangements—statement by borrower
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Division 218—Application of imputation rules to co-operative companies
218-5 Application of imputation rules to co-operative companies
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Division 219—Imputation for life insurance companies
219-1 What this Division is about
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Subdivision 219-A—Application of imputation rules to life insurance companies
219-10 Application of imputation rules to life insurance companies
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Subdivision 219-B—Franking accounts of life insurance companies
219-15 Franking credits
219-30 Franking debits
219-40 Residency requirement
219-45 Assessment day
219-50 Amount attributable to shareholders’ share of income tax liability
219-55 Adjustment resulting from an amended assessment
219-70 Tax offset under section 205-70
219-75 Working out franking credits and franking debits where a tax offset under section 205-70 is applied
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Division 220—Imputation for NZ resident companies and related companies
220-1 What this Division is about
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Subdivision 220-A—Objects of this Division
220-15 Objects
220-20 What is an NZ resident?
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Subdivision 220-B—NZ company treated as Australian resident for imputation system if company chooses
220-25 Application of provisions of Part 3-6 outside this Division
220-30 What is an NZ franking company?
220-35 Making an NZ franking choice
220-40 When is an NZ franking choice in force?
220-45 Revoking an NZ franking choice
220-50 Cancelling an NZ franking choice
Subdivision 220-C—Modifications of other Divisions of this Part
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Franking NZ franking companies’ distributions
220-100 Residency requirement for franking
220-105 Unfrankable distributions by NZ franking companies
220-110 Maximum franking credit under section 202-60
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NZ franking companies’ franking accounts etc.
220-205 Franking credit for payment of NZ franking company’s withholding tax liability
220-210 Effect of franked distribution to NZ franking company or flowing indirectly to NZ franking company
220-215 Effect on franking account if NZ franking choice ceases to be in force
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Franking accounts of NZ franking company and some of its 100% subsidiaries
220-300 NZ franking company’s franking account affected by franking accounts of some of its 100% subsidiaries
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Effect of NZ franking company making distribution that is non-assessable and non-exempt
220-350 Providing for a franking credit to arise
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Effects of supplementary dividend from NZ franking company
220-400 Gross-up and tax offset for distribution from NZ franking company reduced by supplementary dividend
220-405 Franked distribution and supplementary dividend flowing indirectly
220-410 Franking credit reduced if tax offset reduced
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Rules about exempting entities
220-500 Publicly listed post-choice NZ franking company and its 100% subsidiaries are not exempting entities
220-505 Post-choice NZ franking company is not automatically prescribed person
220-510 Parent company’s status as prescribed person sets status of all other members of same wholly-owned group
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NZ franking companies’ exempting accounts
220-605 Effect on exempting account if NZ franking choice ceases to be in force
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Tax effect of distribution franked by NZ franking company with an exempting credit
220-700 Tax effect of distribution franked by NZ franking company with an exempting credit
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Joint and several liability for NZ resident company’s unmet franking liabilities
220-800 Joint and several liability for NZ resident company’s franking tax etc.
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Part 3-10—Financial transactions
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Division 230—Taxation of financial arrangements
230-1 What this Division is about
230-5 Scope of this Division
Subdivision 230-A—Core rules
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Objects
230-10 Objects of this Division
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Tax treatment of gains and losses from financial arrangements
230-15 Gains are assessable and losses deductible
230-20 Gain or loss to be taken into account only once under this Act
230-25 Associated financial benefits to be taken into account only once under this Act
230-30 Treatment of gains and losses related to exempt income and non-assessable non-exempt income
230-35 Treatment of gains and losses of private or domestic nature
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Method to be applied to take account of gain or loss
230-40 Methods for taking gain or loss into account
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Financial arrangement concept
230-45 Financial arrangement
230-50 Financial arrangement (equity interest or right or obligation in relation to equity interest)
230-55 Rights, obligations and arrangements (grouping and disaggregation rules)
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General rules
230-60 When financial benefit provided or received under financial arrangement
230-65 Amount of financial benefit relating to more than one financial arrangement etc.
230-70 Apportionment when financial benefit received or right ceases
230-75 Apportionment when financial benefit provided or obligation ceases
230-80 Consistency in working out gains or losses (integrity measure)
230-85 Rights and obligations include contingent rights and obligations
Subdivision 230-B—The accruals/realisation methods
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Guide to Subdivision 230-B
230-90 What this Subdivision is about
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Objects of Subdivision
230-95 Objects of this Subdivision
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When accruals method or realisation method applies
230-100 When accruals method or realisation method applies
230-105 Sufficiently certain overall gain or loss
230-110 Sufficiently certain gain or loss from particular event
230-115 Sufficiently certain financial benefits
230-120 Financial arrangements with notional principal
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The accruals method
230-125 Overview of the accruals method
230-130 Applying accruals method to work out period over which gain or loss is to be spread
230-135 How gain or loss is spread
230-140 Method of spreading gain or loss—effective interest method
230-145 Application of effective interest method where differing income and accounting years
230-150 Election for portfolio treatment of fees
230-155 Election for portfolio treatment of fees where differing income and accounting years
230-160 Portfolio treatment of fees
230-165 Portfolio treatment of premiums and discounts for acquiring portfolio
230-170 Allocating gain or loss to income years
230-172 Applying accruals method to loss resulting from impairment
230-175 Running balancing adjustments
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Realisation method
230-180 Realisation method
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Reassessment and re-estimation
230-185 Reassessment
230-190 Re-estimation
230-192 Re-estimation—impairments and reversals
230-195 Balancing adjustment if rate of return maintained on re-estimation
230-200 Re-estimation if balancing adjustment on partial disposal
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Subdivision 230-C—Fair value method
230-205 Objects of this Subdivision
230-210 Fair value election
230-215 Fair value election where differing income and accounting years
230-220 Financial arrangements to which fair value election applies
230-225 Financial arrangements to which election does not apply
230-230 Applying fair value method to gains and losses
230-235 Splitting financial arrangements into 2 financial arrangements
230-240 When election ceases to apply
230-245 Balancing adjustment if election ceases to apply
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Subdivision 230-D—Foreign exchange retranslation method
230-250 Objects of this Subdivision
230-255 Foreign exchange retranslation election
230-260 Foreign exchange retranslation election where differing income and accounting years
230-265 Financial arrangements to which general election applies
230-270 Financial arrangements to which general election does not apply
230-275 Balancing adjustment for election in relation to qualifying forex accounts
230-280 Applying foreign exchange retranslation method to gains and losses
230-285 When election ceases to apply
230-290 Balancing adjustment if election ceases to apply
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Subdivision 230-E—Hedging financial arrangements method
230-295 Objects of this Subdivision
230-300 Applying hedging financial arrangement method to gains and losses
230-305 Table of events and allocation rules
230-310 Aligning tax classification of gain or loss from hedging financial arrangement with tax classification of hedged item
230-315 Hedging financial arrangement election
230-320 Hedging financial arrangement election where differing income and accounting years
230-325 Hedging financial arrangements to which election applies
230-330 Hedging financial arrangements to which election does not apply
230-335 Hedging financial arrangement and hedged item
230-340 Generally whole arrangement must be hedging financial arrangement
230-345 Requirements not satisfied because of honest mistake or inadvertence
230-350 Derivative financial arrangement and foreign currency hedge
230-355 Recording requirements
230-360 Determining basis for allocating gain or loss
230-365 Effectiveness of the hedge
230-370 When election ceases to apply
230-375 Balancing adjustment if election ceases to apply
230-380 Commissioner may determine that requirement met
230-385 Consequences of failure to meet requirements
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Subdivision 230-F—Reliance on financial reports
230-390 Objects of this Subdivision
230-395 Election to rely on financial reports
230-400 Financial reports election where differing income and accounting years
230-405 Commissioner discretion to waive requirements in paragraphs 230-395(2)(c) and (e)
230-410 Financial arrangements to which the election applies
230-415 Financial arrangements not covered by election
230-420 Effect of election to rely on financial reports
230-425 When election ceases to apply
230-430 Balancing adjustment if election ceases to apply
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Subdivision 230-G—Balancing adjustment on ceasing to have a financial arrangement
230-435 When balancing adjustment made
230-440 Exceptions
230-445 Balancing adjustment
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Subdivision 230-H—Exceptions
230-450 Short-term arrangements where non-money amount involved
230-455 Certain taxpayers where no significant deferral
230-460 Various rights and/or obligations
230-465 Ceasing to have a financial arrangement in certain circumstances
230-470 Forgiveness of commercial debts
230-475 Clarifying exceptions
230-480 Treatment of gains in form of franked distribution etc.
230-481 Registered emissions units
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Subdivision 230-I—Other provisions
230-485 Effect of change of residence—rules for particular methods
230-490 Effect of change of residence—disposal and reacquisition etc. after ceasing to be Australian resident where no further recognised gains or losses from arrangement
230-495 Effect of change of accounting principles or standards
230-500 Comparable foreign accounting and auditing standards
230-505 Financial arrangement as consideration for provision or acquisition of a thing
230-510 Non-arm’s length dealings in relation to financial arrangement
230-515 Arm’s length dealings in relation to financial arrangement—adjustment to gain or loss in certain situations
230-520 Disregard gains or losses covered by value shifting regime
230-522 Adjusting a gain or loss that gives rise to a hybrid mismatch
230-525 Consolidated financial reports
230-527 Elections—reporting documents of foreign ADIs
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Subdivision 230-J—Additional operation of Division
230-530 Additional operation of Division
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Division 235—Particular financial transactions
235-1 What this Division is about
Subdivision 235-I—Instalment trusts
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Guide to Subdivision 235-I
235-805 What this Subdivision is about
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Operative provisions
235-810 Object of this Subdivision
235-815 Application of Subdivision
235-820 Look-through treatment for instalment trusts
235-825 Meaning of instalment trust and instalment trust asset
235-830 What trusts are covered—instalment trust arrangements
235-835 Requirement for underlying investments to be listed or widely held
235-840 What trusts are covered—limited recourse borrowings by regulated superannuation funds
235-845 Interactions with other provisions
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Division 240—Arrangements treated as a sale and loan
240-1 What this Division is about
240-3 How the recharacterisation affects the notional seller
240-7 How the recharacterisation affects the notional buyer
Subdivision 240-A—Application and scope of Division
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Operative provisions
240-10 Application of this Division
240-15 Scope of Division
Subdivision 240-B—The notional sale and notional loan
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Operative provisions
240-17 Who is the notional seller and the notional buyer?
240-20 Notional sale of property by notional seller and notional acquisition of property by notional buyer
240-25 Notional loan by notional seller to notional buyer
Subdivision 240-C—Amounts to be included in notional seller’s assessable income
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Guide to Subdivision 240-C
240-30 What this Subdivision is about
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Operative provisions
240-35 Amounts to be included in notional seller’s assessable income
240-40 Arrangement payments not to be included in notional seller’s assessable income
Subdivision 240-D—Deductions allowable to notional buyer
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Guide to Subdivision 240-D
240-45 What this Subdivision is about
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Operative provisions
240-50 Extent to which deductions are allowable to notional buyer
240-55 Arrangement payments not to be deductions
Subdivision 240-E—Notional interest and arrangement payments
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Operative provisions
240-60 Notional interest
240-65 Arrangement payments
240-70 Arrangement payment periods
Subdivision 240-F—The end of the arrangement
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Operative provisions
240-75 When is the end of the arrangement?
240-80 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 interest
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Guide to Subdivision 240-G
240-100 What this Subdivision is about
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Operative provisions
240-105 Adjustments for notional seller
240-110 Adjustments for notional buyer
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Subdivision 240-H—Application of Division 16E to certain arrangements
240-112 Division 16E applies to certain arrangements
Subdivision 240-I—Provisions applying to hire purchase agreements
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Operative provisions
240-115 Another person, or no person taken to own property in certain cases
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Division 242—Leases of luxury cars
242-1 What this Division is about
Subdivision 242-A—Notional sale and loan
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Guide to Subdivision 242-A
242-5 What this Subdivision is about
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Operative provisions
242-10 Application
242-15 Notional sale and acquisition
242-20 Consideration for notional sale, and cost, of car
242-25 Notional loan by lessor to lessee
Subdivision 242-B—Amount to be included in lessor’s assessable income
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Guide to Subdivision 242-B
242-30 What this Subdivision is about
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Operative provisions
242-35 Amount to be included in lessor’s assessable income
242-40 Treatment of lease payments
Subdivision 242-C—Deductions allowable to lessee
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Guide to Subdivision 242-C
242-45 What this Subdivision is about
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Operative provisions
242-50 Extent to which deductions are allowable to lessee
242-55 Lease payments not deductible
Subdivision 242-D—Adjustments if total amount assessed to lessor differs from amount of interest
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Guide to Subdivision 242-D
242-60 What this Subdivision is about
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Operative provisions
242-65 Adjustments for lessor
242-70 Adjustments for lessee
Subdivision 242-E—Extension, renewal and final ending of the lease
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Guide to Subdivision 242-E
242-75 What this Subdivision is about
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Operative provisions
242-80 What happens if the term of the lease is extended or the lease is renewed
242-85 What happens if an amount is paid by the lessee to acquire the car
242-90 What happens if the lessee stops having the right to use the car
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Division 243—Limited recourse debt
243-10 What this Division is about
Subdivision 243-A—Circumstances in which Division operates
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Operative provisions
243-15 When does this Division apply?
243-20 What is limited recourse debt?
243-25 When is a debt arrangement terminated?
243-30 What is the financed property and the debt property?
Subdivision 243-B—Working out the excessive deductions
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Operative provisions
243-35 Working out the excessive deductions
Subdivision 243-C—Amounts included in assessable income and deductions
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Operative provisions
243-40 Amount included in debtor’s assessable income
243-45 Deduction for later payments in respect of debt
243-50 Deduction for payments for replacement debt
243-55 Effect of Division on later capital allowance deductions
243-57 Effect of Division on later capital allowance balancing adjustments
243-58 Adjustment where debt only partially used for expenditure
Subdivision 243-D—Special provisions
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Operative provisions
243-60 Application of Division to partnerships
243-65 Application where partner reduces liability
243-70 Application of Division to companies ceasing to be 100% subsidiary
243-75 Application of Division where debt forgiveness rules also apply
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Division 245—Forgiveness of commercial debts
245-1 What this Division is about
245-2 Simplified outline of this Division
Subdivision 245-A—Debts to which operative rules apply
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Guide to Subdivision 245-A
245-5 What this Subdivision is about
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Application of Division
245-10 Commercial debts
245-15 Non-equity shares
245-20 Parts of debts
Subdivision 245-B—What constitutes forgiveness of a debt
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Guide to Subdivision 245-B
245-30 What this Subdivision is about
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Operative provisions
245-35 What constitutes forgiveness of a debt
245-36 What constitutes forgiveness of a debt if the debt is assigned
245-37 What constitutes forgiveness of a debt if a subscription for shares enables payment of the debt
245-40 Forgivenesses to which operative rules do not apply
245-45 Application of operative rules if forgiveness involves an arrangement
Subdivision 245-C—Calculation of gross forgiven amount of a debt
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Guide to Subdivision 245-C
245-48 What this Subdivision is about
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Working out the value of a debt
245-50 Extent of forgiveness if consideration is given
245-55 General rule for working out the value of a debt
245-60 Special rule for working out the value of a non-recourse debt
245-61 Special rule for working out the value of a previously assigned debt
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Working out if an amount is offset against the value of the debt
245-65 Amount offset against amount of debt
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Working out the gross forgiven amount
245-75 Gross forgiven amount of a debt
245-77 Gross forgiven amount shared between debtors
Subdivision 245-D—Calculation of net forgiven amount of a debt
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Guide to Subdivision 245-D
245-80 What this Subdivision is about
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Operative provisions
245-85 Reduction of gross forgiven amount
245-90 Agreement between companies under common ownership for creditor to forgo capital loss or deduction
Subdivision 245-E—Application of net forgiven amounts
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Guide to Subdivision 245-E
245-95 What this Subdivision is about
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General operative provisions
245-100 Subdivision not to apply to calculation of attributable income
245-105 How total net forgiven amount is applied
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Reduction of tax losses
245-115 Total net forgiven amount is applied in reduction of tax losses
245-120 Allocation of total net forgiven amount in respect of tax losses
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Reduction of net capital losses
245-130 Remaining total net forgiven amount is applied in reduction of net capital losses
245-135 Allocation of remaining total net forgiven amount in respect of net capital losses
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Reduction of expenditure
245-145 Remaining total net forgiven amount is applied in reduction of expenditure
245-150 Allocation of remaining total net forgiven amount in respect of expenditures
245-155 How expenditure is reduced—straight line deductions
245-157 How expenditure is reduced—diminishing balance deductions
245-160 Amount applied in reduction of expenditure included in assessable income in certain circumstances
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Reduction of cost bases of assets
245-175 Remaining total net forgiven amount is applied in reduction of cost bases of CGT assets
245-180 Allocation of remaining total net forgiven amount among relevant cost bases of CGT assets
245-185 Relevant cost bases of investments in associated entities are reduced last
245-190 Reduction of the relevant cost bases of a CGT asset
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Unapplied total net forgiven amount
245-195 No further consequences if there is any remaining unapplied total net forgiven amount
Subdivision 245-F—Special rules relating to partnerships
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Guide to Subdivision 245-F
245-200 What this Subdivision is about
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Operative provisions
245-215 Unapplied total net forgiven amount of a partnership is transferred to partners
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Subdivision 245-G—Record keeping
245-265 Keeping and retaining records
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Division 247—Capital protected borrowings
247-1 What this Division is about
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Operative provisions
247-5 Object of Division
247-10 What capital protected borrowing and capital protection are
247-15 Application of this Division
247-20 Treating capital protection as a put option
247-25 Number of put options
247-30 Exercise or expiry of option
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Division 250—Assets put to tax preferred use
250-1 What this Division is about
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Subdivision 250-A—Objects
250-5 Main objects
Subdivision 250-B—When this Division applies to you and an asset
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Overall test
250-10 When this Division applies to you and an asset
250-15 General test
250-20 First exclusion—small business entities
250-25 Second exclusion—financial benefits under minimum value limit
250-30 Third exclusion—certain short term or low value arrangements
250-35 Exceptions to section 250-30
250-40 Fourth exclusion—sum of present values of financial benefits less than amount otherwise assessable
250-45 Fifth exclusion—Commissioner determination
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Tax preferred use of asset
250-50 End user of an asset
250-55 Tax preferred end user
250-60 Tax preferred use of an asset
250-65 Arrangement period for tax preferred use
250-70 New tax preferred use at end of arrangement period if tax preferred use continues
250-75 What constitutes a separate asset for the purposes of this Division
250-80 Treatment of particular arrangements in the same way as leases
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Financial benefits in relation to tax preferred use
250-85 Financial benefits in relation to tax preferred use of an asset
250-90 Financial benefit provided directly or indirectly
250-95 Expected financial benefits in relation to an asset put to tax preferred use
250-100 Present value of financial benefit that has already been provided
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Discount rate to be used in working out present values
250-105 Discount rate to be used in working out present values
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Predominant economic interest
250-110 Predominant economic interest
250-115 Limited recourse debt test
250-120 Right to acquire asset test
250-125 Effectively non-cancellable, long term arrangement test
250-130 Meaning of effectively non-cancellable arrangement
250-135 Level of expected financial benefits test
250-140 When to retest predominant economic interest under section 250-135
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Subdivision 250-C—Denial of, or reduction in, capital allowance deductions
250-145 Denial of capital allowance deductions
250-150 Apportionment rule
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Subdivision 250-D—Deemed loan treatment of financial benefits provided for tax preferred use
250-155 Arrangement treated as loan
250-160 Financial benefits that are subject to deemed loan treatment
250-180 End value of asset
250-185 Financial benefits subject to deemed loan treatment not assessed
Subdivision 250-E—Taxation of deemed loan
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Guide to Subdivision 250-E
250-190 What this Subdivision is about
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Application and objects of Subdivision
250-195 Application of Subdivision
250-200 Objects of this Subdivision
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Tax treatment of gains and losses from financial arrangements
250-205 Gains are assessable and losses deductible
250-210 Gain or loss to be taken into account only once under this Act
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Method to be applied to take account of gain or loss
250-215 Methods for taking gain or loss into account
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General rules
250-220 Consistency in working out gains or losses (integrity measure)
250-225 Rights and obligations include contingent rights and obligations
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The accruals method
250-230 Application of accruals method
250-235 Overview of the accruals method
250-240 Applying accruals method to work out period over which gain or loss is to be spread
250-245 How gain or loss is spread
250-250 Allocating gain or loss to income years
250-255 When to re-estimate
250-260 Re-estimation if balancing adjustment on partial disposal
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Balancing adjustment
250-265 When balancing adjustment made
250-270 Exception for subsidiary member leaving consolidated group
250-275 Balancing adjustment
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Other provisions
250-280 Financial arrangement received or provided as consideration
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Subdivision 250-F—Treatment of asset when Division ceases to apply to the asset
250-285 Treatment of asset after Division ceases to apply to the asset
250-290 Balancing adjustment under Subdivision 40-D in some circumstances
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Subdivision 250-G—Objections against determinations and decisions by the Commissioner
250-295 Objections against determinations and decisions by the Commissioner
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Division 253—Financial claims scheme for account-holders with insolvent ADIs
Subdivision 253-A—Tax treatment of entitlements under financial claims scheme
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Guide to Subdivision 253-A
253-1 What this Subdivision is about
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Operative provisions
253-5 Payment of entitlement under financial claims scheme treated as payment from ADI
253-10 Disposal of rights against ADI to APRA and meeting of financial claims scheme entitlement have no CGT effects
253-15 Cost base of financial claims scheme entitlement and any remaining part of account that gave rise to entitlement
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Volume 6
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Chapter 3—Specialist liability rules
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Part 3-25—Particular kinds of trusts
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Division 275—Australian managed investment trusts: general
275-1 What this Division is about
Subdivision 275-A—Meaning of managed investment trust
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Guide to Subdivision 275-A
275-5 What this Subdivision is about
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Operative provisions
275-10 Meaning of managed investment trust
275-15 Trusts with wholesale membership
275-20 Widely-held requirements—ordinary case
275-25 Widely-held requirements for registered MIT—special case for entities covered by subsection 275-20(4)
275-30 Closely-held restrictions
275-35 Licensing requirements for unregistered MIS
275-40 MIT participation interest
275-45 Meaning of managed investment trust—every member of trust is a managed investment trust etc.
275-50 Extended definition of managed investment trust—no fund payment made in relation to the income year
275-55 Extended definition of managed investment trust—temporary circumstances outside the control of the trustee
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Subdivision 275-B—Choice for capital treatment of managed investment trust gains and losses
275-100 Consequences of making choice—CGT to be primary code for calculating MIT gains or losses
275-105 Covered assets
275-110 MIT not to be trading trust
275-115 MIT CGT choices
275-120 Consequences of not making choice—revenue account treatment
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Subdivision 275-C—Carried interests in managed investment trusts
275-200 Gains and losses etc. from carried interests in managed investment trusts reflected in assessable income or deduction
Subdivision 275-L—Modification for non-arm’s length income
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Guide to Subdivision 275-L
275-600 What this Subdivision is about
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Operative provisions
275-605 Trustee taxed on amount of non-arm’s length income of managed investment trust
275-610 Non-arm’s length income
275-615 Commissioner’s determination in relation to amount of non-arm’s length income
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Division 276—Australian managed investment trusts: attribution managed investment trusts
276-1 What this Division is about
Subdivision 276-A—What is an attribution managed investment trust?
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Guide to Subdivision 276-A
276-5 What this Subdivision is about
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Operative provisions
276-10 Meaning of attribution managed investment trust (or AMIT)
276-15 Clearly defined interests
276-20 Trust with classes of membership interests—each class treated as separate AMIT
Subdivision 276-B—Member’s vested and indefeasible interest in share of income and capital of AMIT
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Guide to Subdivision 276-B
276-50 What this Subdivision is about
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Operative provisions
276-55 AMIT taken to be fixed trust and member taken to have vested and indefeasible interest in income and capital
Subdivision 276-C—Taxation etc. of member components
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Guide to Subdivision 276-C
276-75 What this Subdivision is about
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Taxation etc. of member on determined member components
276-80 Member’s assessable income or tax offsets for determined member components—general rules
276-85 Member’s assessable income or tax offsets for determined member components—specific rules
276-90 Commissioner’s determination as to status of member as qualified person
276-95 Relationship between section 276-80 and withholding rules
276-100 Relationship between section 276-80 and other charging provisions in this Act
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Foreign resident members—taxation of trustee and corresponding tax offset for members
276-105 Trustee taxed on foreign resident’s determined member components
276-110 Refundable tax offset for foreign resident member—member that is not a trustee
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Special rule for interposed custodian
276-115 Custodian interposed between AMIT and member
Subdivision 276-D—Member components
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Guide to Subdivision 276-D
276-200 What this Subdivision is about
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Member-level concepts
276-205 Meaning of determined member component
276-210 Meaning of member component
Subdivision 276-E—Trust components
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Guide to Subdivision 276-E
276-250 What this Subdivision is about
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Trust-level concepts
276-255 Meaning of determined trust component
276-260 Meaning of trust component
276-265 Rules for working out trust components—general rules
276-270 Rules for working out trust components—allocation of deductions
Subdivision 276-F—Unders and overs
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Guide to Subdivision 276-F
276-300 What this Subdivision is about
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Adjustment of trust component for unders and overs etc.
276-305 Adjustment of trust component for unders and overs
276-310 Rounding adjustment deficit increases trust component
276-315 Rounding adjustment surplus decreases trust component
276-320 Meaning of trust component deficit
276-325 Trust component of character relating to assessable income—adjustment for cross-character allocation amount, carry-forward trust component deficit and FITO allocation amount
276-330 Meaning of cross-character allocation amount and carry-forward trust component deficit
276-335 Meaning of FITO allocation amount
276-340 Trust component character relating to tax offset—taxation of trust component deficit
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Unders and overs
276-345 Meaning of under and over of a character
276-350 Limited discovery period for unders and overs
Subdivision 276-G—Shortfall and excess taxation
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Guide to Subdivision 276-G
276-400 What this Subdivision is about
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Ensuring determined trust components are properly taxed
276-405 Trustee taxed on shortfall in determined member component (character relating to assessable income)
276-410 Trustee taxed on excess in determined member component (character relating to tax offset)
276-415 Trustee taxed on amounts of determined trust component that are not reflected in determined member components
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Ensuring unders and overs are properly taxed
276-420 Trustee taxed on amounts of under of character relating to assessable income not properly carried forward
276-425 Trustee taxed on amounts of over of character relating to tax offset not properly carried forward
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Commissioner may remit tax under this Subdivision
276-430 Commissioner may remit tax under this Subdivision
Subdivision 276-H—AMMA statements
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Guide to Subdivision 276-H
276-450 What this Subdivision is about
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Operative provisions
276-455 Obligation to give an AMMA statement
276-460 AMIT member annual statement (or AMMA statement)
Subdivision 276-J—Debt-like trust instruments
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Guide to Subdivision 276-J
276-500 What this Subdivision is about
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Operative provisions
276-505 Meaning of debt-like trust instrument
276-510 Debt-like trust instruments treated as debt interests etc.
276-515 Distribution on debt-like trust instrument could be deductible in working out trust components
Subdivision 276-K—Ceasing to be an AMIT
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Guide to Subdivision 276-K
276-800 What this Subdivision is about
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Operative provisions
276-805 Application of Subdivision to former AMIT
276-810 Continue to work out trust components, unders, overs etc.
276-815 Effect of increase
276-820 Effect of decrease
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Part 3-30—Superannuation
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Division 280—Guide to the superannuation provisions
280-1 Effect of this Division
280-5 Overview
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Contributions phase
280-10 Contributions phase—deductibility
280-15 Contributions phase—limits on superannuation tax concessions
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Investment phase
280-20 Investment phase
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Benefits phase
280-25 Benefits phase—different types of superannuation benefit
280-30 Benefits phase—taxation varies with age of recipient and type of benefit
280-35 Benefits phase—roll-overs
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The regulatory scheme outside this Act
280-40 Other relevant legislative schemes
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Division 285—General concepts relating to superannuation
285-5 Transfers of property
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Division 290—Contributions to superannuation funds
290-1 What this Division is about
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Subdivision 290-A—General rules
290-5 Non-application to roll-over superannuation benefits etc.
290-10 No deductions other than under this Division
Subdivision 290-B—Deduction of employer contributions and other employment-connected contributions
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Deducting employer contributions
290-60 Employer contributions deductible
290-65 Application to employees etc.
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Conditions for deducting an employer contribution
290-70 Employment activity conditions
290-75 Complying fund conditions
290-80 Age related conditions
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Other employment-connected deductions
290-85 Contributions for former employees etc.
290-90 Controlling interest deductions
290-95 Amounts offset against superannuation guarantee charge
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Returned contributions
290-100 Returned contributions assessable
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Subdivision 290-C—Deducting personal contributions
290-150 Personal contributions deductible
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Conditions for deducting a personal contribution
290-155 Complying superannuation fund condition
290-165 Age-related conditions
290-167 Contribution must not be a downsizer contribution
290-168 Contribution must not be a re-contribution under the first home super saver scheme
290-169 Contribution must not be a COVID-19 re-contribution
290-170 Notice of intent to deduct conditions
290-175 Deduction limited by amount specified in notice
290-180 Notice may be varied but not revoked or withdrawn
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Subdivision 290-D—Tax offsets for spouse contributions
290-230 Offset for spouse contribution
290-235 Limit on amount of tax offsets
290-240 Tax file number
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Division 291—Excess concessional contributions
291-1 What this Division is about
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Subdivision 291-A—Object of this Division
291-5 Object of this Division
Subdivision 291-B—Excess concessional contributions
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Guide to Subdivision 291-B
291-10 What this Subdivision is about
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Operative provisions
291-15 Excess concessional contributions—assessable income, 15% tax offset
291-20 Your excess concessional contributions for a financial year
291-25 Your concessional contributions for a financial year
Subdivision 291-C—Modifications for defined benefit interests
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Guide to Subdivision 291-C
291-155 What this Subdivision is about
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Operative provisions
291-160 Application
291-165 Concessional contributions—special rules for defined benefit interests
291-170 Notional taxed contributions
291-175 Defined benefit interest
Subdivision 291-CA—Contributions that do not result in excess contributions
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Guide to Subdivision 291-CA
291-365 What this Subdivision is about
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Operative provisions
291-370 Contributions that do not result in excess contributions
Subdivision 291-D—Other provisions
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Guide to Subdivision 291-D
291-460 What this Subdivision is about
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Operative provisions
291-465 Commissioner’s discretion to disregard contributions etc. in relation to a financial year
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Division 292—Excess non-concessional contributions
292-1 What this Division is about
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Subdivision 292-A—Object of this Division
292-5 Object of this Division
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Subdivision 292-B—Assessable income and tax offset
292-15 What this Subdivision is about
292-20 Amount in assessable income, and tax offset, relating to your non-concessional contributions
292-25 Amount included in assessable income
292-30 Amount of the tax offset
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Subdivision 292-C—Excess non-concessional contributions tax
292-75 What this Subdivision is about
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Operative provisions
292-80 Liability for excess non-concessional contributions tax
292-85 Your excess non-concessional contributions for a financial year
292-90 Your non-concessional contributions for a financial year
292-95 Contributions arising from structured settlements or orders for personal injuries
292-100 Contribution relating to some CGT small business concessions
292-102 Downsizer contributions
292-103 COVID-19 re-contributions
292-105 CGT cap amount
Subdivision 292-E—Excess non-concessional contributions tax assessments
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Guide to Subdivision 292-E
292-225 What this Subdivision is about
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Operative provisions
292-230 Commissioner must make an excess non-concessional contributions tax assessment
292-240 Validity of assessment
292-245 Objections
Subdivision 292-F—Amending excess non-concessional contributions tax assessments
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Guide to Subdivision 292-F
292-300 What this Subdivision is about
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Operative provisions
292-305 Amendments within 4 years of the original assessment
292-310 Amended assessments are treated as excess non-concessional contributions tax assessments
292-315 Later amendments—on request
292-320 Later amendments—fraud or evasion
292-325 Further amendment of an amended particular
292-330 Amendment on review etc.
Subdivision 292-G—Collection and recovery
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Guide to Subdivision 292-G
292-380 What this Subdivision is about
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Operative provisions
292-385 Due date for payment of excess non-concessional contributions tax
292-390 General interest charge
292-395 Refunds of amounts overpaid
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Subdivision 292-H—Other provisions
292-465 Commissioner’s discretion to disregard contributions etc. in relation to a financial year
292-467 Direction that the value of superannuation interests is nil
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Division 293—Sustaining the superannuation contribution concession
293-1 What this Division is about
Subdivision 293-A—Object of this Division
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Operative provisions
293-5 Object of this Division
Subdivision 293-B—Sustaining the superannuation contribution concession
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Guide to Subdivision 293-B
293-10 What this Subdivision is about
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Liability for tax
293-15 Liability for tax
293-20 Your taxable contributions
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Low tax contributions
293-25 Your low tax contributions
293-30 Low tax contributed amounts
Subdivision 293-C—When tax is payable
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Guide to Subdivision 293-C
293-60 What this Subdivision is about
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Operative provisions
293-65 When tax is payable—original assessments
293-70 When tax is payable—amended assessments
293-75 General interest charge
Subdivision 293-D—Modifications for defined benefit interests
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Guide to Subdivision 293-D
293-100 What this Subdivision is about
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Operative provisions
293-105 Low tax contributions—modification for defined benefit interests
293-115 Defined benefit contributions
Subdivision 293-E—Modifications for constitutionally protected State higher level office holders
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Guide to Subdivision 293-E
293-140 What this Subdivision is about
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Operative provisions
293-145 Who this Subdivision applies to
293-150 Low tax contributions—modification for CPFs
293-155 High income threshold—effect of modification
293-160 Salary packaged contributions
Subdivision 293-F—Modifications for Commonwealth justices
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Guide to Subdivision 293-F
293-185 What this Subdivision is about
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Operative provisions
293-190 Who this Subdivision applies to
293-195 Defined benefit contributions—modified treatment of contributions under the Judges’ Pensions Act 1968
293-200 High income threshold—effect of modification
Subdivision 293-G—Modifications for temporary residents who depart Australia
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Guide to Subdivision 293-G
293-225 What this Subdivision is about
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Operative provisions
293-230 Who is entitled to a refund
293-235 Amount of the refund
293-240 Entitlement to refund stops all Division 293 tax liabilities
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Division 294—Transfer balance cap
294-1 What this Division is about
Subdivision 294-A—Object of this Division
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Operative provisions
294-5 Object of this Division
Subdivision 294-B—Transfer balance account
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Guide to Subdivision 294-B
294-10 What this Subdivision is about
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Operative provisions
294-15 When you have a transfer balance account
294-20 Meaning of retirement phase recipient
294-25 Transfer balance credits
294-30 Excess transfer balance
294-35 Your transfer balance cap
294-40 Proportionally indexed transfer balance cap
294-45 Transfer balance account ends
294-50 Assumptions about income streams
294-55 Repayment of limited recourse borrowing arrangement
Subdivision 294-C—Transfer balance debits
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Guide to Subdivision 294-C
294-75 What this Subdivision is about
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Operative provisions
294-80 Transfer balance debits
294-85 Certain events that result in reduced superannuation
294-90 Payment splits
294-95 Payment splits—no double debiting
Subdivision 294-D—Modifications for certain defined benefit income streams
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Guide to Subdivision 294-D
294-120 What this Subdivision is about
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Operative provisions
294-125 When this Subdivision applies
294-130 Meaning of capped defined benefit income stream
294-135 Transfer balance credit—special rule for capped defined benefit income streams
294-140 Excess transfer balance—special rule for capped defined benefit income streams
294-145 Transfer balance debits—special rules for capped defined benefit income streams
Subdivision 294-E—Modifications for death benefits dependants who are children
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Guide to Subdivision 294-E
294-170 What this Subdivision is about
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Operative provisions
294-175 When this Subdivision applies
294-180 Transfer balance account ends
294-185 Transfer balance cap—special rule for child recipient
294-190 Cap increment—child recipient just before 1 July 2017
294-195 Cap increment—child recipient on or after 1 July 2017, deceased had no transfer balance account
294-200 Cap increment—child recipient on or after 1 July 2017, deceased had transfer balance account
Subdivision 294-F—Excess transfer balance tax
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Guide to Subdivision 294-F
294-225 What this Subdivision is about
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Operative provisions
294-230 Excess transfer balance tax
294-235 Your excess transfer balance earnings
294-240 When tax is payable—original assessments
294-245 When tax is payable—amended assessments
294-250 General interest charge
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Division 295—Taxation of superannuation entities
295-1 What this Division is about
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Subdivision 295-A—Provisions of general operation
295-5 Entities to which Division applies
295-10 How to work out the tax payable by superannuation entities
295-15 Division does not impose a tax on property of a State
295-20 Exempting laws ineffective
295-25 Assessments on basis of anticipated SIS Act notice
295-30 Effect of revocation etc. of SIS Act notices
295-35 Acronyms used in tables
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Subdivision 295-B—Modifications of provisions of this Act
295-85 CGT to be primary code for calculating gains or losses
295-90 CGT rules for pre-30 June 1988 assets
295-95 Deductions related to contributions
295-100 Deductions for investing in PSTs and life policies
295-105 Distributions to PST unitholders
Subdivision 295-C—Contributions included
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Guide to Subdivision 295-C
295-155 What this Subdivision is about
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Contributions and payments
295-160 Contributions and payments
295-165 Exception—spouse contributions
295-170 Exception—Government co-contributions and contributions for a child
295-173 Exception—trustee contributions
295-175 Exception—payments by a member spouse
295-180 Exception—choice to exclude certain contributions
295-185 Exception—temporary residents
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Personal contributions and roll-over amounts
295-190 Personal contributions and roll-over amounts
295-195 Exclusion of personal contributions—contributions
295-197 Exclusion of personal contributions—successor funds
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Transfers from foreign funds
295-200 Transfers from foreign superannuation funds
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Application of tables to RSA providers
295-205 Application of tables to RSA providers
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Former constitutionally protected funds
295-210 Former constitutionally protected funds
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Subdivision 295-D—Contributions excluded
295-260 Transfer of liability to investment vehicle
295-265 Application of pre-1 July 88 funding credits
295-270 Anticipated funding credits
Subdivision 295-E—Other income amounts
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Amounts included
295-320 Other amounts included in assessable income
295-325 Previously complying funds
295-330 Previously foreign funds
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Amounts excluded
295-335 Amounts excluded from assessable income
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Subdivision 295-F—Exempt income
295-385 Income from assets set aside to meet current pension liabilities
295-387 Disregarded small fund assets
295-390 Income from other assets used to meet current pension liabilities
295-395 Meaning of segregated non-current assets
295-400 Income of a PST attributable to current pension liabilities
295-405 Other exempt income
295-407 Covered superannuation income streams—RSAs
295-410 Amount credited to RSA
Subdivision 295-G—Deductions
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Death or disability benefits
295-460 Benefits for which deductions are available
295-465 Complying funds—deductions for insurance premiums
295-470 Complying funds—deductions for future liability to pay benefits
295-475 RSA providers—deductions for insurance premiums
295-480 Meaning of whole of life policy and endowment policy
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Other deductions
295-490 Other deductions
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Certain amounts cannot be deducted
295-495 Amounts that cannot be deducted
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Subdivision 295-H—Components of taxable income
295-545 Components of taxable income—complying superannuation funds, complying ADFs and PSTs
295-550 Meaning of non-arm’s length income
295-555 Components of taxable income—RSA providers
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Subdivision 295-I—No-TFN contributions
295-605 Liability for tax on no-TFN contributions income
295-610 No-TFN contributions income
295-615 Meaning of quoted (for superannuation purposes)
295-620 No reduction under Subdivision 295-D
295-625 Assessments
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Subdivision 295-J—Tax offset for no-TFN contributions income (TFN quoted within 5 years)
295-675 Entitlement to a tax offset
295-680 Amount of the tax offset
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Division 301—Superannuation member benefits paid from complying plans etc.
301-1 What this Division is about
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Subdivision 301-A—Application
301-5 Division applies to superannuation member benefits paid from complying plans etc.
Subdivision 301-B—Member benefits: general rules
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Member benefits—recipient aged 60 or above
301-10 All superannuation benefits are tax free
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Member benefits—recipient aged over preservation age and under 60
301-15 Tax free status of tax free component
301-20 Superannuation lump sum—taxable component taxed at 0% up to low rate cap amount, 15% on remainder
301-25 Superannuation income stream—taxable component attracts 15% offset
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Member benefits—recipient aged under preservation age
301-30 Tax free status of tax free component
301-35 Superannuation lump sum—taxable component taxed at 20%
301-40 Superannuation income stream—taxable component is assessable income, 15% offset for disability benefit
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Subdivision 301-C—Member benefits: elements untaxed in fund
301-90 Tax free component and element taxed in fund dealt with under Subdivision 301-B, but element untaxed in the fund dealt with under this Subdivision
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Member benefits (element untaxed in fund)—recipient aged 60 or above
301-95 Superannuation lump sum—element untaxed in fund taxed at 15% up to untaxed plan cap amount, top rate on remainder
301-100 Superannuation income stream—element untaxed in fund attracts 10% offset
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Member benefits (element untaxed in fund)—recipient aged over preservation age and under 60
301-105 Superannuation lump sum—element untaxed in fund taxed at 15% up to low rate cap amount, 30% up to untaxed plan cap amount, top rate on remainder
301-110 Superannuation income stream—element untaxed in fund is assessable income
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Member benefits (element untaxed in fund)—recipient aged under preservation age
301-115 Superannuation lump sum—element untaxed in fund taxed at 30% up to untaxed plan cap amount, top rate on remainder
301-120 Superannuation income stream—element untaxed in fund is assessable income
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Miscellaneous
301-125 Unclaimed money payments by the Commissioner
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Subdivision 301-D—Departing Australia superannuation payments
301-170 Departing Australia superannuation payments
301-175 Treatment of departing Australia superannuation benefits
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Subdivision 301-E—Superannuation lump sum member benefits less than $200
301-225 Superannuation lump sum member benefits less than $200 are tax free
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Division 302—Superannuation death benefits paid from complying plans etc.
302-1 What this Division is about
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Subdivision 302-A—Application
302-5 Division applies to superannuation death benefits paid from complying plans etc.
302-10 Superannuation death benefits paid to trustee of deceased estate
Subdivision 302-B—Death benefits to dependant
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Lump sum death benefits to dependants are tax free
302-60 All of superannuation lump sum is tax free
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Superannuation income stream—either deceased died aged 60 or above or dependant aged 60 or above
302-65 Superannuation income stream benefits are tax free
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Superannuation income stream—deceased died aged under 60 and dependant aged under 60
302-70 Superannuation income stream—tax free status of tax free component
302-75 Superannuation income stream—taxable component attracts 15% offset
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Death benefits to dependant—elements untaxed in fund
302-80 Treatment of element untaxed in the fund of superannuation income stream death benefit to dependant
302-85 Deceased died aged 60 or above or dependant aged 60 years or above—superannuation income stream: element untaxed in fund attracts 10% offset
302-90 Deceased died aged under 60 and dependant aged under 60—superannuation income stream: element untaxed in fund is assessable income
Subdivision 302-C—Death benefits to non-dependant
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Superannuation lump sum
302-140 Superannuation lump sum—tax free status of tax free component
302-145 Superannuation lump sum—element taxed in the fund taxed at 15%, element untaxed in the fund taxed at 30%
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Subdivision 302-D—Definitions relating to dependants
302-195 Meaning of death benefits dependant
302-200 What is an interdependency relationship?
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Division 303—Superannuation benefits paid in special circumstances
303-1 What this Division is about
Subdivision 303-A—Modifications for defined benefit income
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Operative provisions
303-2 Effect of exceeding defined benefit income cap on assessable income
303-3 Effect of exceeding defined benefit income cap on tax offsets
303-4 Meaning of defined benefit income cap
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Subdivision 303-B—Other special circumstances
303-5 Commutation of income stream if you are under 25 etc.
303-10 Superannuation lump sum member benefit paid to member having a terminal medical condition
303-15 Payments from release authorities—general
303-20 Payments from release authorities—paying debt account discharge liability for a superannuation interest
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Division 304—Superannuation benefits in breach of legislative requirements etc.
304-1 What this Division is about
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Operative provisions
304-5 Application
304-10 Superannuation benefits in breach of legislative requirements etc.
304-20 Excess payments from release authorities—paying debt account discharge liability for a superannuation interest
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Division 305—Superannuation benefits paid from non-complying superannuation plans
305-1 What this Division is about
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Subdivision 305-A—Superannuation benefits from Australian non-complying superannuation funds
305-5 Tax treatment of superannuation benefits from certain Australian non-complying superannuation funds
Subdivision 305-B—Superannuation benefits from foreign superannuation funds
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Application of Subdivision
305-55 Restriction to lump sums received from certain foreign superannuation funds
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Lump sums received within 6 months after Australian residency or termination of foreign employment etc.
305-60 Lump sums tax free—foreign resident period
305-65 Lump sums tax free—Australian resident period
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Lump sums to which sections 305-60 and 305-65 do not apply
305-70 Lump sums received more than 6 months after Australian residency or termination of foreign employment etc.
305-75 Lump sums—applicable fund earnings
305-80 Lump sums paid into complying superannuation plans—choice
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Division 306—Roll-overs etc.
306-1 What this Division is about
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Operative provisions
306-5 Effect of a roll-over superannuation benefit
306-10 Roll-over superannuation benefit
306-12 Involuntary roll-over superannuation benefit
306-15 Tax on excess untaxed roll-over amounts
306-20 Effect of payment to government of unclaimed superannuation money
306-25 Payments connected with financial claims scheme to RSAs
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Division 307—Key concepts relating to superannuation benefits
307-1 What this Division is about
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Subdivision 307-A—Superannuation benefits generally
307-5 What is a superannuation benefit?
307-10 Payments that are not superannuation benefits
307-15 Payments for your benefit or at your direction or request
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Subdivision 307-B—Superannuation lump sums and superannuation income stream benefits
307-65 Meaning of superannuation lump sum
307-70 Meaning of superannuation income stream and superannuation income stream benefit
307-75 Meaning of retirement phase superannuation income stream benefit
307-80 When a superannuation income stream is in the retirement phase
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Subdivision 307-C—Components of a superannuation benefit
307-120 Components of superannuation benefit
307-125 Proportioning rule
307-130 Superannuation guarantee payment consists entirely of taxable component
307-135 Superannuation co-contribution benefit payment consists entirely of tax free component
307-140 Contributions-splitting superannuation benefit consists entirely of taxable component
307-142 Components of certain unclaimed money payments
307-145 Modification for disability benefits
307-150 Modification in respect of superannuation lump sum with element untaxed in fund
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Subdivision 307-D—Superannuation interests
307-200 Regulations relating to meaning of superannuation interests
307-205 Value of superannuation interest
307-210 Tax free component of superannuation interest
307-215 Taxable component of superannuation interest
307-220 What is the contributions segment?
307-225 What is the crystallised segment?
307-230 Total superannuation balance
307-231 Limited recourse borrowing arrangements
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Subdivision 307-E—Elements taxed and untaxed in the fund of the taxable component of superannuation benefit
307-275 Element taxed in the fund and element untaxed in the fund of superannuation benefits
307-280 Superannuation benefits from constitutionally protected funds etc.
307-285 Trustee can choose to convert element taxed in the fund to element untaxed in the fund
307-290 Taxed and untaxed elements of death benefit superannuation lump sums
307-295 Superannuation benefits from public sector superannuation schemes may include untaxed element
307-297 Public sector superannuation schemes—elements set by regulations
307-300 Certain unclaimed money payments
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Subdivision 307-F—Low rate cap and untaxed plan cap amounts
307-345 Low rate cap amount
307-350 Untaxed plan cap amount
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Subdivision 307-G—Other concepts
307-400 Meaning of service period for a superannuation lump sum
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Division 310—Loss relief for merging superannuation funds
310-1 What this Division is about
Operative provisions
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Subdivision 310-A—Object of this Division
310-5 Object
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Subdivision 310-B—Choice to transfer losses
310-10 Original fund’s assets extend beyond life insurance policies and units in pooled superannuation trusts
310-15 Original fund’s assets include a complying superannuation life insurance policy
310-20 Original fund’s assets include units in a pooled superannuation trust
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Subdivision 310-C—Consequences of choosing to transfer losses
310-25 Who losses can be transferred to
310-30 Losses that can be transferred
310-35 Effect of transferring a net capital loss
310-40 Effect of transferring a tax loss
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Subdivision 310-D—Choice for assets roll-over
310-45 Choosing the assets roll-over
310-50 Choosing the form of the assets roll-over
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Subdivision 310-E—Consequences of choosing assets roll-over
310-55 CGT assets—if global asset approach chosen
310-60 CGT assets—individual asset approach
310-65 Revenue assets—if global asset approach chosen
310-70 Revenue assets—individual asset approach
310-75 Further consequences for roll-overs involving life insurance companies
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Subdivision 310-F—Choices
310-85 Choices
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Division 312—Trans-Tasman portability of retirement savings
312-1 What this Division is about
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Subdivision 312-A—Preliminary
312-5 Division implements Arrangement with New Zealand
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Subdivision 312-B—Amounts contributed to complying superannuation funds from KiwiSaver schemes
312-10 Amounts contributed to complying superannuation funds from KiwiSaver schemes
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Subdivision 312-C—Superannuation benefits paid to KiwiSaver scheme providers
312-15 Superannuation benefits paid to KiwiSaver schemes
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Division 313—First home super saver scheme
313-1 What this Division is about
Subdivision 313-A—Preliminary
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Operative provisions
313-5 Object of this Division
313-10 Application of this Division
Subdivision 313-B—Assessable income and tax offset
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Guide to Subdivision 313-B
313-15 What this Subdivision is about
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Operative provisions
313-20 Amount included in assessable income
313-25 Amount of the tax offset
Subdivision 313-C—Purchasing or constructing a residential premises
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Guide to Subdivision 313-C
313-30 What this Subdivision is about
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Operative provisions
313-35 Purchasing or constructing a residential premises
313-40 Notifying Commissioner
Subdivision 313-D—Contributing amounts to superannuation
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Guide to Subdivision 313-D
313-45 What this Subdivision is about
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Operative provisions
313-50 Contributing amounts to superannuation
Subdivision 313-E—First home super saver tax
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Guide to Subdivision 313-E
313-55 What this Subdivision is about
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Operative provisions
313-60 First home super saver tax
313-65 When tax is payable—original assessments
313-70 When tax is payable—amended assessments
313-75 General interest charge
Subdivision 313-F—Review of decisions
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Guide to Subdivision 313-F
313-80 What this Subdivision is about
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Operative provisions
313-85 Review rights for decisions made under this Division
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Volume 7
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Chapter 3—Specialist liability rules
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Part 3-32—Co-operatives and mutual entities
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Division 315—Demutualisation of private health insurers
315-1 What this Division is about
Subdivision 315-A—Capital gains and losses connected with a demutualisation of a private health insurer to be disregarded
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Rules for policy holders
315-5 Policy holders to disregard capital gains and losses related to demutualisation of private health insurer
315-10 Effect on the legal personal representative or beneficiary
315-15 Demutualisations to which this Division applies
315-20 What assets are covered
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Rules for demutualising health insurer
315-25 Demutualising health insurers to disregard capital gains and losses related to demutualisation
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Rules for other entities
315-30 Other entities to disregard capital gains and losses related to demutualisation
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Subdivision 315-B—Cost base of certain shares and rights in private health insurers
315-80 Cost base and acquisition time of demutualisation assets
315-85 Demutualisation asset
315-90 Participating policy holders
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Subdivision 315-C—Lost policy holders trust
315-140 Lost policy holders trust
315-145 CGT treatment of demutualisation assets in lost policy holders trust
315-150 Roll-over where assets transferred to lost policy holder
315-155 Trustee assessed if assets dealt with not for benefit of lost policy holder
315-160 Subdivision 126-E does not apply to lost policy holders trust
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Subdivision 315-D—Special cost base rules for certain shares and rights in holding companies
315-210 Cost base for shares and rights in certain holding companies
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Subdivision 315-E—Special CGT rule for legal personal representatives and beneficiaries
315-260 Special CGT rule for legal personal representatives and beneficiaries
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Subdivision 315-F—Non-CGT consequences of demutualisation
315-310 General taxation consequences of issue of demutualisation assets etc.
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Division 316—Demutualisation of friendly society health or life insurers
316-1 What this Division is about
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Subdivision 316-A—Application
316-5 Application of this Division
Subdivision 316-B—Capital gains and losses connected with the demutualisation
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Guide to Subdivision 316-B
316-50 What this Subdivision is about
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Gains and losses of members, insured entities and successors
316-55 Disregarding capital gains and losses, except some involving receipt of money
316-60 Taking account of some capital gains and losses involving receipt of money
316-65 Valuation factor for sections 316-60, 316-105 and 316-165
316-70 Value of the friendly society
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Friendly society’s gains and losses
316-75 Disregarding friendly society’s capital gains and losses
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Other entities’ gains and losses
316-80 Disregarding other entities’ capital gains and losses
Subdivision 316-C—Cost base of shares and rights issued under the demutualisation
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Guide to Subdivision 316-C
316-100 What this Subdivision is about
316-105 Cost base and time of acquisition of shares and certain rights issued under demutualisation
316-110 Demutualisation assets
316-115 Entities to which section 316-105 applies
Subdivision 316-D—Lost policy holders trust
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Guide to Subdivision 316-D
316-150 What this Subdivision is about
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Application
316-155 Lost policy holders trust
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Effects of CGT events happening to interests and assets in trust
316-160 Disregarding beneficiaries’ capital gains and losses, except some involving receipt of money
316-165 Taking account of some capital gains and losses involving receipt of money by beneficiaries
316-170 Roll-over where shares or rights to acquire shares transferred to beneficiary of lost policy holders trust
316-175 Trustee assessed if shares or rights dealt with not for benefit of beneficiary of lost policy holders trust
316-180 Subdivision 126-E does not apply
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Subdivision 316-E—Special CGT rules for legal personal representatives and beneficiaries
316-200 Demutualisation assets not owned by deceased but passing to beneficiary in deceased estate
316-205 Interest in lost policy holders trust not owned by deceased but passing to beneficiary in deceased estate
Subdivision 316-F—Non-CGT consequences of the demutualisation
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Guide to Subdivision 316-F
316-250 What this Subdivision is about
316-255 General taxation consequences of issue of demutualisation assets etc.
316-260 Franking debits to stop the friendly society and its subsidiaries having franking surpluses
316-265 Franking debits to negate franking credits from some distributions to friendly society and subsidiaries
316-270 Franking debits to negate franking credits from post-demutualisation payments of pre-demutualisation tax
316-275 Franking credits to negate franking debits from refunds of tax paid before demutualisation
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Part 3-35—Insurance business
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Division 320—Life insurance companies
320-1 What this Division is about
Operative provisions
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Subdivision 320-A—Preliminary
320-5 Object of Division
Subdivision 320-B—What is included in a life insurance company’s assessable income
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Guide to Subdivision 320-B
320-10 What this Subdivision is about
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Operative provisions
320-15 Assessable income—various amounts
320-30 Assessable income—special provision for certain income years
320-35 Exempt income
320-37 Non-assessable non-exempt income
320-45 Tax treatment of gains or losses from CGT events in relation to complying superannuation assets
Subdivision 320-C—Deductions and capital losses
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Guide to Subdivision 320-C
320-50 What this Subdivision is about
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Operative provisions
320-55 Deduction for life insurance premiums where liabilities under life insurance policies are to be discharged from complying superannuation 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 complying superannuation asset pool
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 complying superannuation assets or segregated exempt assets
320-125 Capital losses from complying superannuation assets
Subdivision 320-D—Income tax, taxable income and tax loss of life insurance companies
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Guide to Subdivision 320-D
320-130 What this Subdivision is about
320-131 Overview of Subdivision
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General rules
320-133 Object of Subdivision
320-134 Income tax of a life insurance company
320-135 Taxable income and tax loss of each of the 2 classes
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Taxable income and tax loss of life insurance companies
320-137 Taxable income—complying superannuation class
320-139 Taxable income—ordinary class
320-141 Tax loss—complying superannuation class
320-143 Tax loss—ordinary class
320-149 Provisions that apply only in relation to the ordinary class
Subdivision 320-E—No-TFN contributions of life insurance companies that are RSA providers
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Guide to Subdivision 320-E
320-150 What this Subdivision is about
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Operative provisions
320-155 Subdivisions 295-I and 295-J apply to companies that are RSA providers
Subdivision 320-F—Complying superannuation asset pool
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Guide to Subdivision 320-F
320-165 What this Subdivision is about
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Operative provisions
320-170 Establishment of complying superannuation asset pool
320-175 Valuations of complying superannuation assets and complying superannuation liabilities for each valuation time
320-180 Consequences of a valuation under section 320-175
320-185 Transfer of assets to complying superannuation asset pool otherwise than as a result of a valuation under section 320-175
320-190 Complying superannuation liabilities
320-195 Transfer of assets and payment of amounts from a complying superannuation asset pool otherwise than as a result of a valuation under section 320-175
320-200 Consequences of transfer of assets to or from complying superannuation asset pool
Subdivision 320-H—Segregation of assets to discharge exempt life insurance policy liabilities
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Guide to Subdivision 320-H
320-220 What this Subdivision is about
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Operative provisions
320-225 Segregation of assets for purpose of discharging exempt life insurance policy liabilities
320-230 Valuations of segregated exempt assets and exempt life insurance policy liabilities for each valuation time
320-235 Consequences of a valuation under section 320-230
320-240 Transfer of assets to segregated exempt assets otherwise than as a result of a valuation under section 320-230
320-245 Exempt life insurance policy liabilities
320-246 Exempt life insurance policy
320-247 Policy split into an exempt life insurance policy and another life insurance policy
320-250 Transfer of assets and payment of amounts from segregated exempt assets otherwise than as a result of a valuation under section 320-230
320-255 Consequences of transfer of assets to or from segregated exempt assets
Subdivision 320-I—Transfers of business
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Guide to Subdivision 320-I
320-300 What this Subdivision is about
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Operative provisions
320-305 When this Subdivision applies
320-310 Special deductions and amounts of assessable income
320-315 Complying superannuation asset pool and segregated exempt assets
320-320 Certain amounts treated as life insurance premiums
320-325 Friendly societies
320-330 Immediate annuities
320-335 Parts of assets treated as separate assets
320-340 Continuous disability policies
320-345 Exemption of management fees
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Division 321—General insurance companies and companies that self-insure in respect of workers’ compensation liabilities
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Subdivision 321-A—Provision for, and payment of, claims by general insurance companies
321-10 Assessable income to include amount for reduction in outstanding claims liability
321-15 Deduction for increase in outstanding claims liability
321-20 How value of outstanding claims liability is worked out
321-25 Deduction for claims paid during current year
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Subdivision 321-B—Premium income of general insurance companies
321-45 Assessable income to include gross premiums
321-50 Assessable income to include amount for reduction in value of unearned premium reserve
321-55 Deduction for increase in value of unearned premium reserve
321-60 How value of unearned premium reserve is worked out
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Subdivision 321-C—Companies that self-insure in respect of workers’ compensation liabilities
321-80 Assessable income to include amount for reduction in outstanding claims liability
321-85 Deduction for outstanding claims liability
321-90 How value of outstanding claims liability is worked out
321-95 Deductions for claims paid during current year
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Division 322—Assistance for policyholders with insolvent general insurers
322-1 What this Division is about
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Subdivision 322-A—HIH rescue package
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
Subdivision 322-B—Tax treatment of entitlements under financial claims scheme
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Guide to Subdivision 322-B
322-20 What this Subdivision is about
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Operative provisions
322-25 Payment of entitlement under financial claims scheme treated as payment from insurer
322-30 Disposal of rights against insurer to APRA and meeting of financial claims scheme entitlement have no CGT effects
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Part 3-45—Rules for particular industries and occupations
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Division 328—Small business entities
328-5 What this Division is about
328-10 Concessions available to small business entities
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Subdivision 328-B—Objects of this Division
328-50 Objects of this Division
Subdivision 328-C—What is a small business entity
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Guide to Subdivision 328-C
328-105 What this Subdivision is about
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Operative provisions
328-110 Meaning of small business entity
328-115 Meaning of aggregated turnover
328-120 Meaning of annual turnover
328-125 Meaning of connected with an entity
328-130 Meaning of affiliate
Subdivision 328-D—Capital allowances for small business entities
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Guide to Subdivision 328-D
328-170 What this Subdivision is about
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Operative provisions
328-175 Calculations for depreciating assets
328-180 Assets costing less than $1,000
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 if you are not a small business entity or do not choose to use this Subdivision for an income year
328-225 Change in business use
328-230 Estimate where deduction denied
328-235 Interaction with Divisions 85 and 86
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Special rules about roll-overs
328-243 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 small and medium business entities
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Guide to Subdivision 328-E
328-280 What this Subdivision is about
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Operative provisions
328-285 Trading stock for small and medium business entities
328-295 Value of trading stock on hand
Subdivision 328-F—Small business income tax offset
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Guide to Subdivision 328-F
328-350 What this Subdivision is about
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Operative provisions
328-355 Entitlement to the small business income tax offset
328-357 Special meaning of small business entity for the purposes of this Subdivision—$5 million turnover threshold
328-360 Amount of your tax offset
328-365 Net small business income
328-370 Relevant attributable deductions
328-375 Modification if you are under 18 years old
Subdivision 328-G—Restructures of small businesses
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Guide to Subdivision 328-G
328-420 What this Subdivision is about
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Object of this Subdivision
328-425 Object of this Subdivision
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Requirements for a roll-over under this Subdivision
328-430 When a roll-over is available
328-435 Genuine restructures—safe harbour rule
328-440 Ultimate economic ownership—discretionary trusts
328-445 Residency requirement
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Consequences of a roll-over under this Subdivision
328-450 Small business transfers not to affect income tax positions
328-455 Effect of small business restructures on transferred cost of assets
328-460 Effect of small business restructures on acquisition times of pre-CGT assets
328-465 New membership interests as consideration for transfer of assets
328-470 Membership interests affected by transfers of assets
328-475 Small business restructures involving assets already subject to small business roll-over
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Division 355—Research and Development
355-1 What this Division is about
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Subdivision 355-A—Object
355-5 Object
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Subdivision 355-B—Meaning of R&D activities and other terms
355-20 R&D activities
355-25 Core R&D activities
355-30 Supporting R&D activities
355-35 R&D entities
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Subdivision 355-C—Entitlement to tax offset
355-100 Entitlement to tax offset
355-105 Deductions under this Division are notional only
355-110 Notional deductions include prepaid expenditure
355-115 Working out an R&D entity’s total expenses
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Subdivision 355-D—Notional deductions for R&D expenditure
355-200 What this Subdivision is about
355-205 When notional deductions for R&D expenditure arise
355-210 Conditions for R&D activities
355-215 R&D activities conducted by a permanent establishment for other parts of the body corporate
355-220 R&D activities conducted for a foreign entity
355-225 Expenditure that cannot be notionally deducted
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Subdivision 355-E—Notional deductions etc. for decline in value of depreciating assets used for R&D activities
355-300 What this Subdivision is about
355-305 When notional deductions for decline in value arise
355-310 Notional application of Division 40
355-315 Balancing adjustments—assets only used for R&D activities
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Subdivision 355-F—Integrity Rules
355-400 Expenditure incurred while not at arm’s length
355-405 Expenditure not at risk
355-410 Disposal of R&D results
355-415 Reducing deductions to reflect mark-ups within groups
Subdivision 355-G—Clawback of R&D recoupments, feedstock adjustments and balancing adjustments
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Guide to Subdivision 355-G
355-430 What this Subdivision is about
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Operative provisions
355-435 When this Subdivision applies
355-440 R&D recoupments
355-445 Feedstock adjustments
355-446 Balancing adjustments for assets only used for R&D activities
355-447 Balancing adjustments for assets partially used for R&D activities
355-448 Balancing adjustments for R&D partnership assets only used for R&D activities
355-449 Balancing adjustments for R&D partnership assets partially used for R&D activities
355-450 Amount to be included in assessable income
Subdivision 355-H—Catch up deductions for balancing adjustment events for assets used for R&D activities
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Guide to Subdivision 355-H
355-455 What this Subdivision is about
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Operative provisions
355-460 When this Subdivision applies
355-465 Assets only used for R&D activities
355-466 Assets partially used for R&D activities
355-467 R&D partnership assets only used for R&D activities
355-468 R&D partnership assets partially used for R&D activities
355-475 Amount that can be deducted
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Subdivision 355-I—Application to earlier income year R&D expenditure incurred to associates
355-480 Notional deductions for expenditure incurred to associate in earlier income years
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Subdivision 355-J—Application to R&D partnerships
355-500 What this Subdivision is about
355-505 Meaning of R&D partnership and partner’s proportion
355-510 R&D partnership expenditure on R&D activities
355-515 R&D activities conducted by or for an R&D partnership
355-520 When notional deductions arise for decline in value of depreciating assets of R&D partnerships
355-525 Balancing adjustments for R&D partnership assets only used for R&D activities
355-530 Implications for partner’s aggregated turnover
355-535 Disposal of R&D results for R&D partnerships
355-540 Application of recoupment rules
355-545 Relevance for net income, and losses, of the R&D partnership
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Subdivision 355-K—Application to Cooperative Research Centres
355-580 When notional deductions for CRC contributions arise
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Subdivision 355-W—Other matters
355-705 Effect of findings by Innovation and Science Australia
355-710 Amendment of assessments
355-715 Implications for other deductions and tax offsets
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Division 360—Early stage investors in innovation companies
Subdivision 360-A—Tax incentives for early stage investors in innovation companies
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Guide to Subdivision 360-A
360-5 What this Subdivision is about
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Operative provisions
360-10 Object of this Subdivision
360-15 Entitlement to the tax offset
360-20 Limited entitlement for certain kinds of investors
360-25 Amount of the tax offset—general case
360-30 Amount of the tax offset—members of trusts or partnerships
360-35 Amount of the tax offset—trustees
360-40 Early stage innovation companies
360-45 100 point innovation test
360-50 Modified CGT treatment
360-55 Modified CGT treatment—partnerships
360-60 Modified CGT treatment—not affected by certain roll-overs
360-65 Separate modified CGT treatment for roll-overs about wholly-owned companies or scrip for scrip roll-overs
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Division 376—Films generally (tax offsets for Australian production expenditure)
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Subdivision 376-A—Guide to Division 376
376-1 What this Division is about
376-2 Key features of the tax offsets for Australian production expenditure on films
376-5 Structure of this Division
Subdivision 376-B—Tax offsets for Australian expenditure in making a film
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Refundable tax offset for Australian expenditure in making a film (location offset)
376-10 Film production company entitled to refundable tax offset for Australian expenditure in making a film (location offset)
376-15 Amount of the location offset
376-20 Minister must issue certificate for a film for the location offset
376-25 Meaning of documentary
376-30 Minister to determine a company’s qualifying Australian production expenditure for the location offset
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Refundable tax offset for post, digital and visual effects production for a film (PDV offset)
376-35 Film production company entitled to refundable tax offset for post, digital and visual effects production for a film (PDV offset)
376-40 Amount of the PDV offset
376-45 Minister must issue certificate for a film for the PDV offset
376-50 Minister to determine a company’s qualifying Australian production expenditure for the PDV offset
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Refundable tax offset for Australian expenditure in making an Australian film (producer offset)
376-55 Film production company entitled to refundable tax offset for Australian expenditure in making an Australian film (producer offset)
376-60 Amount of the producer offset
376-65 Film authority must issue certificate for an Australian film for the producer offset
376-70 Determination of content of film
376-75 Film authority to determine a company’s qualifying Australian production expenditure for the producer offset
Subdivision 376-C—Production expenditure and qualifying Australian production expenditure
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Production expenditure—common rules
376-125 Production expenditure—general test
376-130 Production expenditure—special qualifying Australian production expenditure
376-135 Production expenditure—specific exclusions
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Production expenditure—special rules for the location offset
376-140 Production expenditure—special rules for the location offset
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Qualifying Australian production expenditure—common rules
376-145 Qualifying Australian production expenditure—general test
376-150 Qualifying Australian production expenditure—specific inclusions
376-155 Qualifying Australian production expenditure—specific exclusions
376-160 Qualifying Australian production expenditure—treatment of services embodied in goods
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Qualifying Australian production expenditure—special rules for the location offset and the PDV offset
376-165 Qualifying Australian production expenditure—special rules for the location offset and the PDV offset
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Qualifying Australian production expenditure—special rules for the producer offset
376-170 Qualifying Australian production expenditure—special rules for the producer offset
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Expenditure generally—common rules
376-175 Expenditure to be worked out on an arm’s length basis
376-180 Expenditure incurred by prior production companies
376-185 Expenditure to be worked out excluding GST
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Subdivision 376-D—Certificates for films and other matters
376-230 Production company may apply for certificate
376-235 Notice of refusal to issue certificate
376-240 Issue of certificate
376-245 Revocation of certificate
376-247 Delegation by Arts Minister
376-250 Notice of decision or determination
376-255 Review of decisions by the Administrative Appeals Tribunal
376-260 Minister may make rules about the location offset and the PDV offset
376-265 Film authority may make rules about the producer offset
376-270 Amendment of assessments
376-275 Review in relation to certain production levels
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Division 380—National Rental Affordability Scheme
380-1 What this Division is about
Subdivision 380-A—National Rental Affordability Scheme Tax Offset
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NRAS certificates issued to individuals, corporate tax entities and superannuation funds
380-5 Claims by individuals, corporate tax entities and superannuation funds
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NRAS certificates issued to NRAS approved participants
380-10 Members of NRAS consortiums—individuals, corporate tax entities and superannuation funds
380-11 Elections by NRAS approved participants
380-12 Elections by NRAS approved participants—tax offsets
380-13 Elections by NRAS approved participants—special rule for partnerships and trustees
380-14 Members of NRAS consortiums—partnerships and trustees
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NRAS certificates issued to partnerships and trustees
380-15 Entities to whom NRAS rent flows indirectly
380-16 Elections by NRAS approved participants that are partnerships or trustees
380-17 Elections by NRAS approved participants that are partnerships or trustees—tax offsets
380-18 Elections by NRAS approved participants that are partnerships or trustees—special rule for partnerships and trustees
380-20 Trustee of a trust that does not have net income for an income year
380-25 When NRAS rent flows indirectly to or through an entity
380-30 Share of NRAS rent
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Miscellaneous
380-32 Amended certificates
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Subdivision 380-B—Payments made in relation to the National Rental Affordability Scheme etc.
380-35 Payments made and non-cash benefits provided in relation to the National Rental Affordability Scheme
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Division 385—Primary production
385-1 What this Division is about
385-5 Where to find some other rules relevant to primary producers
Subdivision 385-E—Primary producer can elect to spread or defer tax on profit from forced disposal or death of live stock
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Guide to Subdivision 385-E
385-90 What this Subdivision is about
385-95 Basic principles for elections under this Subdivision
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Operative provisions
385-100 Cases where you can make an election
385-105 Election to spread tax profit over 5 years
385-110 Alternative election to defer tax profit and reduce cost of replacement live stock
385-115 Your assessable income includes an amount for replacement live stock you breed
385-120 Purchase price of replacement live stock is reduced
385-125 Alternative election because of bovine tuberculosis has effect over 10 years not 5
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Subdivision 385-F—Insurance for loss of live stock or trees
385-130 Insurance for loss of live stock or trees
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Subdivision 385-G—Double wool clips
385-135 Election to defer including profit on second wool clip
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Subdivision 385-H—Rules that apply to all elections made under Subdivisions 385-E, 385-F and 385-G
385-145 Partnerships and trusts
385-150 Time for making election
385-155 Amounts are assessable income from carrying on the primary production business
385-160 Effect of certain events on election
385-163 Disentitling events
385-165 New partnership can elect to be treated as same entity as old partnership
385-170 New partnership can elect to take advantage of election made by former owner of the business
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Division 392—Long-term averaging of primary producers’ tax liability
392-1 What this Division is about
392-5 Overview of averaging process
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Subdivision 392-A—Is your income tax affected by averaging?
392-10 Individuals who carry on a primary production business
392-15 Meaning of basic taxable income
392-20 Trust beneficiaries taken to be carrying on primary production business
392-22 Trustee may choose that a beneficiary is a chosen beneficiary of the trust
392-25 Choosing not to have your income tax averaged
Subdivision 392-B—What kind of averaging adjustment must you make?
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Guide to Subdivision 392-B
392-30 What this Subdivision is about
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Tax offset or extra income tax
392-35 Will you get a tax offset or have to pay extra income tax?
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How to work out the comparison rate
392-40 Identify income years for averaging your basic taxable income
392-45 Work out your average income for those years
392-50 Work out the income tax on your average income at basic rates
392-55 Work out the comparison rate
Subdivision 392-C—How big is your averaging adjustment?
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Guide to Subdivision 392-C
392-60 What this Subdivision is about
392-65 What your averaging adjustment reflects
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Your gross averaging amount
392-70 Working out your gross averaging amount
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Your averaging adjustment
392-75 Working out your averaging adjustment
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How to work out your averaging component
392-80 Work out your taxable primary production income
392-85 Work out your taxable non-primary production income
392-90 Work out your averaging component
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Subdivision 392-D—Effect of permanent reduction of your basic taxable income
392-95 You are treated as if you had not carried on business before
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Division 393—Farm management deposits
393-1 What this Division is about
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Subdivision 393-A—Tax consequences of farm management deposits
393-5 Deduction for making farm management deposit
393-10 Assessability on repayment of deposit
393-15 Transactions to which the deduction, assessment and 12 month rules have modified application
393-16 Consolidation of farm management deposits
393-17 Tax consequences of liabilities reducing because of farm management deposits
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Subdivision 393-B—Meaning of farm management deposit and owner
393-20 Farm management deposits
393-25 Owners of farm management deposits
393-27 Trustee may choose that a beneficiary is a chosen beneficiary of the trust
393-28 Application of Division to beneficiary no longer under legal disability
393-30 Effect of contravening requirements
393-35 Requirements of agreement for a farm management deposit
393-37 Agreements for a farm management deposit may allow for some offsets of a depositor’s liabilities
393-40 Repayment of deposit within first 12 months
393-45 Partly repaid farm management deposits
Subdivision 393-C—Special rules relating to financial claims scheme for account-holders with insolvent ADIs
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Guide to Subdivision 393-C
393-50 What this Subdivision is about
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Operative provisions
393-55 Farm management deposits arising from farm management deposits with ADIs subject to financial claims scheme
393-60 Repayment if owner of farm management deposit with insolvent ADI dies, is bankrupt or ceases to be a primary producer
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Division 394—Forestry managed investment schemes
394-1 What this Division is about
394-5 Object of this Division
394-10 Deduction for amounts paid under forestry managed investment schemes
394-15 Forestry managed investment schemes and related concepts
394-20 Payments on behalf of participant in forestry managed investment scheme
394-25 CGT event in relation to forestry interest in forestry managed investment scheme—initial participant
394-30 CGT event in relation to forestry interest in forestry managed investment scheme—subsequent participant
394-35 70% DFE rule
394-40 Payments under forestry managed investment scheme
394-45 Direct forestry expenditure
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Division 405—Above-average special professional income of authors, inventors, performing artists, production associates and sportspersons
405-1 What this Division is about
405-5 Special rate of income tax on your above-average special professional income
405-10 Overview of the Division
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Subdivision 405-A—Above-average special professional income
405-15 When do you have above-average special professional income?
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Subdivision 405-B—Assessable professional income
405-20 What you count as assessable professional income
405-25 Meaning of special professional, performing artist, production associate, sportsperson and sporting competition
405-30 What you cannot count as assessable professional income
405-35 Limits on counting amounts as assessable professional income
405-40 Joint author or inventor treated as sole author or inventor
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Subdivision 405-C—Taxable professional income and average taxable professional income
405-45 Working out your taxable professional income
405-50 Working out your average taxable professional income
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Division 410—Copyright and resale royalty collecting societies
410-1 What this Division is about
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Subdivision 410-A—Notice of payments
410-5 Copyright collecting society must give notice to member of society
410-50 Resale royalty collecting society must give notice to holder of resale royalty right
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Division 415—Designated infrastructure projects
415-1 What this Division is about
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Subdivision 415-A—Object of this Division
415-5 Object of this Division
Subdivision 415-B—Tax losses and bad debts
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Guide to Subdivision 415-B
415-10 What this Subdivision is about
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Uplift of tax losses
415-15 Uplift of tax losses of designated infrastructure project entities
415-20 Designated infrastructure project entity
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Change of ownership of trusts and companies
415-25 Tax losses of trusts
415-30 Bad debts written off etc. by trusts
415-35 Tax losses of companies
415-40 Bad debts written off by companies
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Consolidated groups
415-45 Losses transferred to head companies of consolidated groups
Subdivision 415-C—Designating infrastructure projects
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Guide to Subdivision 415-C
415-50 What this Subdivision is about
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Designating infrastructure projects
415-55 Applications for designation
415-60 Dealing with applications
415-65 Provisional designation
415-70 Designation
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Infrastructure project capital expenditure cap
415-75 Infrastructure project capital expenditure cap
415-80 Acceptance of estimates of infrastructure project capital expenditure
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Miscellaneous
415-85 Review of decisions
415-90 Information to be made public
415-95 Delegation
415-100 Infrastructure project designation rules
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Division 417—Timor Sea petroleum
417-1 What this Division is about
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Subdivision 417-A—Introduction
417-5 Object
417-10 Meaning of transitioned petroleum activities
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Subdivision 417-B—Capital allowances
417-25 Deducting amounts for depreciating assets
417-30 Balancing adjustments
417-35 Allocating assets to a project pool
417-40 Deduction for expenditure on mining site rehabilitation
417-45 Capital expenditure
417-50 Transferring entitlement to deductions relating to a project pool
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Subdivision 417-C—Capital gains tax
417-65 CGT events not created by Timor Sea Maritime Boundaries Treaty entering into force
417-70 Tax treatment of consideration for transferred entitlement to deductions or tax loss
417-75 Membership interests affected by transfer of entitlement to deductions or tax loss
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Subdivision 417-D—Transferring or applying tax losses
417-90 Tax losses from transitioned petroleum activities
417-95 How choices are made
417-100 The effect of choosing to transfer losses
417-105 The effect of choosing to apply losses to earlier income years
417-110 Continuity of ownership and business continuity tests
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Subdivision 417-E—Foreign income tax offset
417-125 Foreign income tax offset
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Subdivision 417-F—Transfer pricing
417-140 Transfer pricing benefits relating to transitioned petroleum activities
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Division 418—Exploration for minerals
418-1 What this Division is about
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Subdivision 418-A—Object of this Division
418-5 Object of this Division
Subdivision 418-B—Junior minerals exploration incentive tax offset
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Entitlement to junior minerals exploration incentive tax offset
418-10 Who is entitled to the tax offset—ordinary case
418-15 Who is entitled to the tax offset—life insurance company
418-20 Entitlement of member of a trust or partnership to a share of exploration credits
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Amount of junior minerals exploration incentive tax offset
418-25 The amount of the tax offset
418-30 Reduced amount of the tax offset for certain trusts
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Subdivision 418-C—Junior minerals exploration incentive franking credit
418-50 Junior minerals exploration incentive franking credit—ordinary case
418-55 Junior minerals exploration incentive franking credit—life insurance company
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Subdivision 418-D—Creating exploration credits
418-70 Entities that may create exploration credits
418-75 Meaning of greenfields minerals explorer
418-80 Meaning of greenfields minerals expenditure
418-81 Meaning of exploration credits allocation for an income year
418-82 When does an entity have an unused allocation of exploration credits from an income year
418-85 Exploration credits must not exceed maximum exploration credit amount
418-95 Effect on tax losses of creating exploration credits
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Subdivision 418-DA—Exploration credits allocation
418-100 Applying for an exploration credits allocation
418-101 Determination by the Commissioner
418-102 General allocation rules
418-103 Meaning of annual exploration cap
418-104 Failure to comply with this Subdivision does not affect allocation
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Subdivision 418-E—Issuing exploration credits
418-110 Issuing exploration credits
418-111 Working out whether an exploration investment has been made in an income year
418-115 Who may receive an exploration credit and what is the pool from which the credit may be issued
418-116 Exploration credits issued must be in proportion to exploration investment
418-120 The total of all exploration credits issued in relation to exploration investment
418-125 Expiry of exploration credits
418-130 Notifying the Commissioner of issuing or expiry of exploration credits
418-135 Notifying the Commissioner if no exploration investment in income year for which credits allocated
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Subdivision 418-F—Excess exploration credits
418-150 Excess exploration credit tax
418-151 Complying exploration credit amount
418-155 Due date for payment of excess exploration credit tax
418-160 Returns
418-165 When shortfall interest charge is payable
418-170 General interest charge
418-175 Refunds of amounts overpaid
418-180 Record keeping
418-185 Determining an entity not to be a greenfields minerals explorer
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Subdivision 418-G—Other matters
418-190 Annual impact assessments of this Division
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Part 3-50—Climate change
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Division 420—Registered emissions units
420-1 What this Division is about
420-5 The 4 key features of tax accounting for registered emissions units
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Subdivision 420-A—Registered emissions units
420-10 Meaning of registered emissions unit
420-12 Meaning of hold a registered emissions unit
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Subdivision 420-B—Acquiring registered emissions units
420-15 What you can deduct
420-20 Non-arm’s length transactions and transactions with associates
420-21 Incoming international transfers of emissions units
420-22 Becoming taxable in Australia on the proceeds of sale of registered emissions units
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Subdivision 420-C—Disposing of registered emissions units etc.
420-25 Assessable income on disposal of registered emissions units
420-30 Non-arm’s length transactions and transactions with associates
420-35 Outgoing international transfers of emissions units
420-40 Disposal of registered emissions units for a purpose other than gaining assessable income
420-41 Ceasing to be taxable in Australia on the proceeds of sale of registered emissions units
420-42 Deduction for expenses incurred in ceasing to hold a registered emissions unit
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Subdivision 420-D—Accounting for registered emissions units you hold at the start or end of the income year
420-45 You include the value of your registered emissions units in working out your assessable income and deductions
420-50 Value of registered emissions units at start of income year
420-51 Valuation methods
420-52 FIFO cost method of working out the value of units
420-53 Actual cost method of working out the value of units
420-54 Market value method of working out the value of units
420-55 Valuation method for first income year at the end of which you held registered emissions units
420-57 Valuation method for later income years at the end of which you held registered emissions units
420-60 Cost of registered emissions units
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Subdivision 420-E—Exclusivity of Division
420-65 Exclusivity of deductions etc.
420-70 Exclusivity of assessable income etc.
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Volume 8
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Chapter 3—Specialist liability rules
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Part 3-80—Roll-overs applying to assets generally
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Division 615—Roll-overs for business restructures
615-1 What this Division is about
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Subdivision 615-A—Choosing to obtain roll-overs
615-5 Disposing of interests in one entity for shares in a company
615-10 Redeeming or cancelling interests in one entity for shares in a company
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Subdivision 615-B—Further requirements for choosing to obtain roll-overs
615-15 Interposed company must own all the original interests
615-20 Requirements relating to your interests in the original entity
615-25 Requirements relating to the interposed company
615-30 Interposed company must make a particular choice
615-35 ADI restructures—disregard certain preference shares
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Subdivision 615-C—Consequences of roll-overs
615-40 CGT consequences
615-45 Additional consequences—deferral of profit or loss
615-50 Trading stock
615-55 Revenue assets
615-60 Disregard CGT exemption for trading stock
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Subdivision 615-D—Consequences for the interposed company
615-65 Consequences for the interposed company
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Division 620—Assets of wound-up corporation passing to corporation with not significantly different ownership
Subdivision 620-A—Corporations covered by Subdivision 124-I
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Guide to Subdivision 620-A
620-5 What this Subdivision is about
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Application and object of this Subdivision
620-10 Application
620-15 Object
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CGT consequences
620-20 Disregard body’s capital gains and losses from CGT assets
620-25 Cost base and pre-CGT status of CGT asset for company
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Consequences for depreciating assets
620-30 Roll-over relief for balancing adjustment events
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Consequences for trading stock
620-40 Body taken to have sold trading stock to company
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Consequences for revenue assets
620-50 Body taken to have sold revenue assets to company
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Part 3-90—Consolidated groups
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Division 700—Guide and objects
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Guide
700-1 What this Part is about
700-5 Overview of this Part
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Objects
700-10 Objects of this Part
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Division 701—Core rules
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Common rule
701-1 Single entity rule
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Head company rules
701-5 Entry history rule
701-10 Cost to head company of assets of joining entity
701-15 Cost to head company of membership interests in entity that leaves group
701-20 Cost to head company of assets consisting of certain liabilities owed by entity that leaves group
701-25 Tax-neutral consequence for head company of ceasing to hold assets when entity leaves group
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Entity rules
701-30 Where entity not subsidiary member for whole of income year
701-35 Tax-neutral consequence for entity of ceasing to hold assets when it joins group
701-40 Exit history rule
701-45 Cost of assets consisting of liabilities owed to entity by members of the group
701-50 Cost of certain membership interests of which entity becomes holder on leaving group
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Supporting provisions
701-55 Setting the tax cost of an asset
701-56 Application of subsection 701-55(6)
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
701-60A Tax cost setting amount for asset emerging when entity leaves group
701-61 Assets in relation to Division 230 financial arrangement—head company’s assessable income or deduction
701-63 Right to future income and WIP amount asset
701-65 Net income and losses for trusts and partnerships
701-67 Assets in this Part are CGT assets, etc.
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Exceptions
701-70 Adjustments to taxable income where identities of parties to arrangement merge on joining group
701-75 Adjustments to taxable income where identities of parties to arrangement re-emerge on leaving group
701-80 Accelerated depreciation
701-85 Other exceptions etc. to the rules
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Division 703—Consolidated groups and their members
703-1 What this Division is about
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Basic concepts
703-5 What is a consolidated group?
703-10 What is a consolidatable group?
703-15 Members of a consolidated group or consolidatable group
703-20 Certain entities that cannot be members of a consolidated group or consolidatable group
703-25 Australian residence requirements for trusts
703-30 When is one entity a wholly-owned subsidiary of another?
703-33 Transfer time for sale of shares in company
703-35 Treating entities as wholly-owned subsidiaries by disregarding employee shares
703-37 Disregarding certain preference shares following an ADI restructure
703-40 Treating entities held through non-fixed trusts as wholly-owned subsidiaries
703-45 Subsidiary members or nominees interposed between the head company and a subsidiary member of a consolidated group or a consolidatable group
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Choice to consolidate a consolidatable group
703-50 Choice to consolidate a consolidatable group
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Consolidated group created when MEC group ceases to exist
703-55 Creating consolidated groups from certain MEC groups
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Notice of events affecting consolidated group
703-58 Notice of choice to consolidate
703-60 Notice of events affecting consolidated group
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Effects of choice to continue group after shelf company becomes new head company
703-65 Application
703-70 Consolidated group continues in existence with interposed company as head company and original entity as a subsidiary member
703-75 Interposed company treated as substituted for original entity at all times before the completion time
703-80 Effects on the original entity’s tax position
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Division 705—Tax cost setting amount for assets where entities become subsidiary members of consolidated groups
705-1 What this Division is about
Subdivision 705-A—Basic case: a single entity joining an existing consolidated group
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Guide to Subdivision 705-A
705-5 What this Subdivision is about
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Application and object
705-10 Application and object of this Subdivision
705-15 Cases where this Subdivision does not have effect
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Tax cost setting amount for assets that joining entity brings into joined group
705-20 Tax cost setting amount worked out under this Subdivision
705-25 Tax cost setting amount for retained cost base assets
705-27 Reduction in tax cost setting amount that exceeds market value of certain 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
705-40 Tax cost setting amount for reset cost base assets held on revenue account etc.
705-45 Reduction in tax cost setting amount for accelerated depreciation assets
705-47 Reduction in tax cost setting amount for some privatised assets
705-55 Order of application of sections 705-40, 705-45 and 705-47
705-56 Modification for tax cost setting in relation to finance leases
705-57 Adjustment to tax cost setting amount where loss of pre-CGT status of membership interests in joining entity
705-58 Assets and liabilities not set off against each other
705-59 Exception: treatment of linked assets and liabilities
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How to work out the allocable cost amount
705-60 What is the joined group’s allocable cost amount for the joining entity?
705-62 No double counting of amounts in allocable cost amount
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
705-76 Liability arising from transfer or assignment of securitised assets
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 or head company—step 3A in working out allocable cost amount
705-95 Pre-joining time distributions out of certain profits—step 4 in working out allocable cost amount
705-100 Losses accruing to joined group before joining time—step 5 in working out allocable cost amount
705-105 Continuity of holding membership interests—steps 3 to 5 in working out allocable cost amount
705-110 If joining entity transfers a loss to the head company—step 6 in working out allocable cost amount
705-115 If head company becomes entitled to certain deductions—step 7 in working out allocable cost amount
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How to work out a pre-CGT factor for assets of joining entity
705-125 Pre-CGT proportion for joining entity
Subdivision 705-B—Case of group formation
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Guide to Subdivision 705-B
705-130 What this Subdivision is about
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Application and object
705-135 Application and object of this Subdivision
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Modified application of Subdivision 705-A
705-140 Subdivision 705-A has effect with modifications
705-145 Order in which tax cost setting amounts are to be worked out where subsidiary members have membership interests in other subsidiary members
705-147 Adjustment in working out step 3A of allocable cost amount to take account of membership interests held by subsidiary members in other such members
705-155 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
Subdivision 705-C—Case where a consolidated group is acquired by another
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Guide to Subdivision 705-C
705-170 What this Subdivision is about
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Application and object
705-175 Application and object of this Subdivision
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Modified application of Division 701 in relation to acquired group etc.
705-180 Modifications of Division 701
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Modified application of Subdivision 705-A in relation to acquiring group
705-185 Subdivision 705-A has effect with modifications
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Modifications of Subdivision 705-A for the purposes of this Subdivision
705-195 Modified application of subsection 705-65(6)
705-200 Modified application of section 705-85
Subdivision 705-D—Where multiple entities are linked by membership interests
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Guide to Subdivision 705-D
705-210 What this Subdivision is about
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Application and object
705-215 Application and object of this Subdivision
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Modified application of Subdivision 705-A
705-220 Subdivision 705-A has effect with modifications
705-225 Order in which tax cost setting amounts are to be worked out where linked entities have membership interests in other linked entities
705-227 Adjustment in working out step 3A of allocable cost amount to take account of membership interests held by linked entities in other linked entities
705-230 Adjustments to restrict step 4 reduction of allocable cost amount to effective distributions to head company in respect of direct membership interests
705-235 Adjustment to allocation of allocable cost amount to take account of owned profits or losses of certain linked entities
705-240 Modified application of section 705-57
Subdivision 705-E—Adjustments for errors etc.
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Guide to Subdivision 705-E
705-300 What this Subdivision is about
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Operative provisions
705-305 Object of this Subdivision
705-310 Operation of Part IVA of the Income Tax Assessment Act 1936
705-315 Errors that attract special adjustment action
705-320 Tax cost setting amounts taken to be correct
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Division 707—Losses for head companies when entities become members etc.
Subdivision 707-A—Transfer of losses to head company
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Guide to Subdivision 707-A
707-100 What this Subdivision is about
707-105 Who can utilise the loss?
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Objects
707-110 Objects of this Subdivision
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Application
707-115 What losses this Subdivision applies to
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Transfer of loss from joining entity to head company
707-120 Transfer of loss from joining entity to head company
707-125 Modified business continuity test for companies’ post-1999 losses
707-130 Modified pattern of distributions test
707-135 Transferring loss transferred to joining entity because business continuity test was satisfied
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Effect of transfer of loss
707-140 Effect of transfer of loss
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Cancelling the transfer of the loss
707-145 Cancelling the transfer of the loss
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What happens if the loss is not transferred?
707-150 Loss cannot be utilised for income year ending after the joining time
Subdivision 707-B—Can a transferred loss be utilised?
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Guide to Subdivision 707-B
707-200 What this Subdivision is about
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Operative provisions
707-205 Modified period for test for maintaining same ownership
707-210 Utilisation of certain losses transferred from a company depends on company that made the losses earlier
Subdivision 707-C—Amount of transferred losses that can be utilised
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Guide to Subdivision 707-C
707-300 What this Subdivision is about
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Object
707-305 Object of this Subdivision
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How much of a transferred loss can be utilised?
707-310 How much of a transferred loss can be utilised?
707-315 What is a bundle of losses?
707-320 What is the available fraction for a bundle of losses?
707-325 Modified market value of an entity becoming a member of a consolidated group
707-330 Losses transferred from former head company
707-335 Limit on utilising transferred losses if circumstances change during income year
707-340 Utilising transferred losses while exempt income remains
707-345 Other provisions are subject to this Subdivision
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Subdivision 707-D—Special rules about losses
707-400 Head company’s business before and after consolidation not compared
707-410 Exit history rule does not treat entity as having made a loss
707-415 Application of losses with nil available fraction for certain purposes
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Division 709—Other rules applying when entities become subsidiary members etc.
Subdivision 709-A—Franking accounts
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Guide to Subdivision 709-A
709-50 What this Subdivision is about
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Object
709-55 Object of this Subdivision
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Treatment of franking accounts at joining time
709-60 Nil balance franking account for joining entity
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Treatment of subsidiary member’s franking account
709-65 Subsidiary member’s franking account does not operate
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Treatment of head company’s franking account
709-70 Credits arising in head company’s franking account
709-75 Debits arising in head company’s franking account
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Franking distributions by subsidiary member
709-80 Subsidiary member’s distributions on employee shares and certain preference shares taken to be distributions by the head company
709-85 Non-share distributions by subsidiary members taken to be distributions by head company
709-90 Subsidiary member’s distributions to foreign resident taken to be distributions by head company
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Payment of group liability by former subsidiary member
709-95 Payment of group liability by former subsidiary member
709-100 Refund of income tax to former subsidiary member
Subdivision 709-B—Imputation issues
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Guide to Subdivision 709-B
709-150 What this Subdivision is about
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Operative provisions
709-155 Testing consolidated groups
709-160 Subsidiary member is exempting entity
709-165 Subsidiary member is former exempting entity
709-170 Head company and subsidiary are exempting entities
709-175 Head company is former exempting entity
Subdivision 709-C—Treatment of excess franking deficit tax offsets when entity becomes a subsidiary member of a consolidated group
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Guide to Subdivision 709-C
709-180 What this Subdivision is about
709-185 Joining entity’s excess franking deficit tax offsets transferred to head company
709-190 Exit history rule not to treat leaving entity as having a franking deficit tax offset excess
Subdivision 709-D—Deducting bad debts
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Guide to Subdivision 709-D
709-200 What this Subdivision is about
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Application and object
709-205 Application of this Subdivision
709-210 Object of this Subdivision
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Limit on deduction of bad debt
709-215 Limit on deduction of bad debt
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Extension of Subdivision to debt/equity swap loss
709-220 Limit on deduction of swap loss
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Division 711—Tax cost setting amount for membership interests where entities cease to be subsidiary members of consolidated groups
711-1 What this Division is about
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Application and object of this Division
711-5 Application and object of this Division
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Tax cost setting amount for membership interests etc.
711-10 Tax cost setting amount worked out under this Division
711-15 Tax cost setting amount where no multiple exit
711-20 What is the old group’s allocable cost amount for the leaving entity?
711-25 Terminating values of the leaving entity’s assets—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
711-46 Liability arising from transfer or assignment of securitised assets
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
711-70 Additional integrity rule if membership interests treated as having been acquired before 20 September 1985 under section 711-65—application of Division 149 to head company
711-75 Additional integrity rule if membership interests treated as having been acquired before 20 September 1985 under section 711-65—application of CGT event K6
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Division 713—Rules for particular kinds of entities
Subdivision 713-A—Trusts
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Working out a joined group’s allocable cost amount for a joining trust
713-20 Increasing the step 1 amount for settled capital that could be distributed tax free in respect of discretionary interests
713-25 Undistributed, realised profits that accrue to joined group before joining time and could be distributed tax free—step 3 in working out allocable cost amount
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Determining destination of distribution by non-fixed trust
713-50 Factors to consider
Subdivision 713-C—Some unit trusts treated like head companies of consolidated groups
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Guide to Subdivision 713-C
713-120 What this Subdivision is about
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Object of this Subdivision
713-125 Object of this Subdivision
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Choice to form a consolidated group
713-130 Choosing to form a consolidated group
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Effects of choice
713-135 Effects of choice
713-140 Modifications of the applied law
Subdivision 713-E—Partnerships
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Guide to Subdivision 713-E
713-200 What this Subdivision is about
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Objects
713-205 Objects of this Subdivision
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Partnership cost setting interests etc.
713-210 Partnership cost setting interests
713-215 Terminating value for partnership cost setting interest
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Setting tax cost of partnership cost setting interests
713-220 Set tax cost of partnership cost setting interests if partner joins consolidated group
713-225 Tax cost setting amount for partnership cost setting interest
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Special rules where partnership joins consolidated group
713-235 Partnership joins group—set tax cost of partnership assets
713-240 Partnership joins group—tax cost setting amount for partnership asset
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Special rules where partnership leaves consolidated group
713-250 Partnership leaves group—standard provisions modified
713-255 Partnership leaves group—tax cost setting amount for partnership cost setting interests
713-260 Partnership leaves group—tax cost setting amount for assets consisting of being owed certain liabilities
713-265 Partnership leaves group—adjustments to allocable cost amount of partner who also leaves group
Subdivision 713-L—Life insurance companies
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Guide to Subdivision 713-L
713-500 What this Subdivision is about
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General modifications for life insurance companies
713-505 Head company treated as a life insurance company
713-510 Certain subsidiaries of life insurance companies cannot be members of consolidated group
713-510A Disregard single entity rule in working out certain amounts in respect of life insurance company
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Life insurance companies’ liabilities on joining consolidated group
713-511 Treatment of certain liabilities for income year when life insurance company joins consolidated group
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Tax cost setting rules for life insurance companies joining consolidated group
713-515 Certain assets taken to be retained cost base assets where life insurance company joins group
713-520 Valuing certain liabilities where life insurance company joins group
713-525 Obligation to value certain assets and liabilities at joining time
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Losses of life insurance companies joining consolidated group
713-530 Treatment of certain losses of life insurance company
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Losses of life insurance companies’ subsidiaries joining consolidated group
713-535 Losses of entities whose membership interests are complying superannuation assets of life insurance company
713-540 Losses of entities whose membership interests are segregated exempt assets of life insurance company
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Imputation rules for life insurance companies joining consolidated group
713-545 Treatment of franking surplus in franking account of life insurance subsidiary joining group
713-550 Treatment of head company’s franking account after joining
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Liabilities for life insurance companies leaving consolidated group
713-565 Treatment of certain liabilities for income year when life insurance company leaves consolidated group
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Losses for life insurance companies leaving consolidated group
713-570 Certain losses transferred to leaving company
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Tax cost setting rules for life insurance companies leaving consolidated group
713-575 Terminating value of certain assets where life insurance company leaves group
713-580 Valuing certain liabilities where life insurance company leaves group
713-585 Obligation to value certain assets and liabilities at leaving time
Subdivision 713-M—General insurance companies
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Guide to Subdivision 713-M
713-700 What this Subdivision is about
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Tax cost setting rules for general insurance companies joining consolidated group
713-705 Certain assets taken to be retained cost base assets where general insurance company joins group
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Liabilities and reserves of general insurance companies joining and leaving consolidated groups
713-710 Treatment of liabilities and reserves for income year when general insurance company joins or leaves group
713-715 If general insurance company joins consolidated group
713-720 If general insurance company leaves consolidated group
713-725 Treatment of certain assets and liabilities of general insurance companies
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Division 715—Interactions between this Part and other areas of the income tax law
Subdivision 715-A—Treatment of unrealised losses existing when ownership or control of a company changes before or during consolidation
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Object
715-15 Object of this Subdivision
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Effect on Subdivision 165-CC of a company becoming a member of a consolidated group
715-25 Subdivision 165-CC stops applying to earlier changeover time
715-30 Meaning of 165-CC tagged asset
715-35 Meaning of final RUNL
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165-CC tagged assets that affect tax cost setting amounts
715-50 Step 1 amount is reduced if membership interest in subsidiary member is 165-CC tagged asset and business continuity 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 business continuity test is failed
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165-CC tagged assets that form loss denial pools of head company when consolidated group is formed
715-60 Assets that the head company already owns
715-70 Assets of subsidiary member that become those of head company
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How Subdivision 165-CC applies to consolidated groups
715-75 Extension of single entity rule and entry history rule
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Effect on Subdivision 165-CC of entity leaving consolidated group
715-80 Application of sections 715-85 to 715-110
715-85 First changeover time for leaving company at or after leaving time
715-90 How business continuity test applies if leaving time is changeover time for leaving company
715-95 If ownership and control of leaving entity have not changed since head company’s last changeover time
715-100 First choice: adjustable values of leaving assets reduced to nil
715-105 Second choice: head company’s final RUNL applied in reducing adjustable values of leaving assets that are loss assets
715-110 Third choice: loss denial pool of leaving entity created
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Effect of assets in loss denial pool of head company becoming assets of leaving entity
715-120 What happens
715-125 First choice: adjustable values of leaving assets reduced to nil
715-130 Second choice: pool’s loss denial balance applied in reducing adjustable values of leaving assets that are loss assets
715-135 Third choice: loss denial pool of leaving entity created
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Effect of first and second choices on various kinds of assets
715-145 Effect of choice on adjustable value of leaving asset
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General provisions about loss denial pools
715-155 When asset leaves pool
715-160 How loss denial balance is applied to losses realised on assets in pool
715-165 When pool ceases to exist
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Choices under this Subdivision
715-175 When choice must be made
715-180 Head company to notify leaving entity of choice
715-185 Leaving entity may choose to cancel loss denial pool by reducing adjustable values of assets in the pool
Subdivision 715-B—How Subdivision 165-CD applies to consolidated groups and leaving entities
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How Subdivision 165-CD applies to consolidated groups
715-215 Extension of single entity rule and entry history rule
715-225 Working out adjusted unrealised loss using individual asset method
715-230 No reductions or other consequences for interests subject to loss cancellation under Subdivision 715-H
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How Subdivision 165-CD applies to leaving entity that is a company
715-240 Application of sections 715-245 to 715-260
715-245 If ownership or control of leaving entity has altered since head company’s last alteration time or formation of group
715-250 If head company has had an alteration time but ownership and control of leaving entity have not altered since
715-255 Consequences if leaving entity is a loss company at the leaving time
715-260 If neither of sections 715-245 and 715-250 applies
715-265 Head company does not have relevant equity or debt interest in a loss company if widely held top company does not have such an interest
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How Subdivision 165-CD applies to leaving entity that is a trust
715-270 Subdivision 165-CD applies
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Subdivision 715-C—Common rules for the purposes of Subdivisions 715-A and 715-B
715-290 Additional assumptions to be made when using reference time
Subdivision 715-D—Treatment of company’s deferred losses under Subdivision 170-D on joining a consolidated group
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Key terminology
715-310 What is a 170-D deferred loss, and when it revives
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Deferred loss on 165-CC tagged asset
715-355 Head company’s own deferred losses at formation time
715-360 Deferred losses brought in by subsidiary member
715-365 How loss denial balance is applied when 170-D deferred loss revives
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Subdivision 715-E—Interactions with Division 775 (Foreign currency gains and losses)
715-370 Cost setting—reference time for determining currency exchange rate effect
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Subdivision 715-F—Interactions with Division 230 (financial arrangements)
715-375 Cost setting on joining—amount of liability that is Division 230 financial arrangement
715-378 Cost setting on joining—head company’s right to receive or obligation to provide payment
715-379 Cost setting on leaving—amount of intragroup liability that is Division 230 financial arrangement
715-379A Cost setting on leaving—head company’s or leaving entity’s right to receive or obligation to provide payment
715-380 Exit history rule not to affect certain matters related to Division 230 financial arrangements
715-385 Exit history rule and elective methods applying to Division 230 financial arrangements
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Subdivision 715-G—How value shifting rules apply to a consolidated group
715-410 Extension of single entity rule and entry history rule
715-450 No reductions or other consequences for interests subject to loss cancellation under Subdivision 715-H
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Subdivision 715-H—Cancelling loss on realisation event for direct or indirect interest in a 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
Subdivision 715-J—Entry history rule and choices
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Head company’s choice overriding entry history rule
715-660 Head company’s choice overriding entry history rule
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Choices head company can make ignoring entry history rule to override inconsistencies
715-665 Head company’s choice to override inconsistency
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Choices with ongoing effect
715-670 Ongoing effect of choices made by entities before joining group
715-675 Head company adopting choice with ongoing effect
Subdivision 715-K—Exit history rule and choices
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Choices leaving entity can make ignoring exit history rule
715-700 Choices leaving entity can make ignoring exit history rule
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Choices leaving entity can make ignoring exit history rule to overcome inconsistencies
715-705 Choices leaving entity can make ignoring exit history rule to overcome inconsistencies
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Subdivision 715-U—Effect on conduit foreign income
715-875 Extension of single entity rule and entry history rule
715-880 No CFI for leaving entity
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Subdivision 715-V—Entity ceasing to be exempt from income tax on becoming subsidiary member of consolidated group
715-900 Transition time taken to be just before joining time
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Subdivision 715-W—Effect on arrangements where CGT roll-overs are obtained
715-910 Effect on restructures—original entity becomes a subsidiary member
715-915 Effect on restructures—original entity is a head company
715-920 Effect on restructures—original entity is a head company that becomes a subsidiary member of another group
715-925 Effect on restructures—original entity ceases being a subsidiary member
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Division 716—Miscellaneous special rules
Subdivision 716-A—Assessable income and deductions spread over several membership or non-membership periods
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Guide to Subdivision 716-A
716-1 What this Division is about
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Operative provisions
716-15 Assessable income spread over 2 or more income years
716-25 Deductions spread over 2 or more income years
716-70 Capital expenditure that is fully deductible in one income year
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Assessable income and deductions arising from share of net income of a partnership or trust, or from share of partnership loss
716-75 Application
716-80 Head company’s assessable income and deductions
716-85 Entity’s assessable income and deductions for a non-membership period
716-90 Entity’s share of assessable income or deductions of partnership or trust
716-95 Special rule if not all partnership or trust’s assessable income or deductions taken into account in working out amount
716-100 Spreading period
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Subdivision 716-E—Tax cost setting for exploration and prospecting assets
716-300 Prime cost method of working out decline in value
Subdivision 716-G—Low-value and software development pools
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Assets in joining entity’s low-value pool
716-330 Head company’s deductions for decline in value of assets in joining entity’s low-value pool
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Entity leaving group with asset allocated to head company’s low-value pool
716-335 Entity leaving group with asset allocated to head company’s low-value pool
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Depreciating assets arising from expenditure in joining entity’s software development pool
716-340 Depreciating assets arising from expenditure in joining entity’s software development pool
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Software development pools if entity leaves consolidated group
716-345 Head company taken not to have incurred expenditure
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Subdivision 716-S—Miscellaneous consequences of tax cost setting
716-400 Tax cost setting and bad debts
716-440 Membership interests in joining entity not subject to CGT under Division 855—foreign entity ceasing to hold interests
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Subdivision 716-V—Research and Development
716-500 Head company bound by agreements binding on subsidiary members
716-505 History for entitlement to tax offset: joining entity
716-510 History for entitlement to tax offset: leaving entity
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Subdivision 716-Z—Other
716-800 Allocating amounts to periods if head company and subsidiary member have different income years
716-850 Grossing up threshold amounts for periods of less than 365 days
716-855 Working out the cost base or reduced cost base of a pre-CGT asset after certain roll-overs
716-860 CGT event straddling joining or leaving time
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Division 717—International tax rules
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Subdivision 717-A—Foreign income tax offsets
717-1 What this Subdivision is about
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Object
717-5 Object of this Subdivision
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Foreign income tax on amounts in head company’s assessable income
717-10 Head company taken to be liable for subsidiary member’s foreign income tax
Subdivision 717-D—Transfer of certain surpluses under CFC provisions and former FIF and FLP provisions: entry rules
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Guide to Subdivision 717-D
717-200 What this Subdivision is about
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Object
717-205 Object of this Subdivision
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Transfers
717-210 Attribution surpluses
717-220 FIF surpluses
717-227 Deferred attribution credits
Subdivision 717-E—Transfer of certain surpluses under CFC provisions and former FIF and FLP provisions: exit rules
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Guide to Subdivision 717-E
717-235 What this Subdivision is about
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Object
717-240 Object of this Subdivision
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Transfers
717-245 Attribution surpluses
717-255 FIF surpluses
717-262 Deferred attribution credits
Subdivision 717-O—Offshore banking units
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Guide to Subdivision 717-O
717-700 What this Subdivision is about
717-705 Object of this Subdivision
717-710 Head company treated as OBU
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Division 719—MEC groups
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Subdivision 719-A—Modified application of Part 3-90 to MEC groups
719-2 Modified application of Part 3-90 to MEC groups
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Subdivision 719-B—MEC groups and their members
719-4 What this Subdivision is about
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Basic concepts
719-5 What is a MEC group?
719-10 What is a potential MEC group?
719-15 What is an eligible tier-1 company?
719-20 What is a top company and a tier-1 company?
719-25 Head company, subsidiary members and members of a MEC group
719-30 Treating entities as wholly-owned subsidiaries by disregarding employee shares
719-35 Treating entities held through non-fixed trusts as wholly-owned subsidiaries
719-40 Special conversion event—potential MEC group
719-45 Application of sections 703-20 and 703-25
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Choice to consolidate a potential MEC group
719-50 Eligible tier-1 companies may choose to consolidate a potential MEC group
719-55 When choice starts to have effect
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Provisional head company
719-60 Appointment of provisional head company
719-65 Qualifications for the provisional head company of a MEC group
719-70 Income year of new provisional head company to be the same as that of former provisional head company
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Head company
719-75 Head company
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Notice of events affecting group
719-76 Notice of choice to consolidate
719-77 Notice in relation to new eligible tier-1 members etc.
719-78 Notice of special conversion event
719-79 Notice of appointment of provisional head company after formation of group
719-80 Notice of events affecting MEC group
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Effects of change of head company
719-85 Application
719-90 New head company treated as substituted for old head company at all times before the transition time
719-95 No consequences of old head company becoming, and new head company ceasing to be, subsidiary member of the group
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Subdivision 719-BA—Group conversions involving MEC groups
719-120 Application
719-125 Head company of new group retains history of head company of old group
719-130 Provisions of this Part not to apply to conversion
719-135 Provisions of this Part applying to conversion despite section 719-130
719-140 Other provisions of this Part not applying to conversion
Subdivision 719-C—MEC group cost setting rules: joining cases
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Guide to Subdivision 719-C
719-150 What this Subdivision is about
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Application and object
719-155 Object of this Subdivision
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Modified application of tax cost setting rules for joining
719-160 Tax cost setting rules for joining have effect with modifications
719-165 Trading stock value and registered emissions unit value not set for assets of eligible tier-1 companies
719-170 Modified effect of subsections 705-175(1) and 705-185(1)
Subdivision 719-F—Losses
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Guide to Subdivision 719-F
719-250 What this Subdivision is about
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Maintaining the same ownership to be able to utilise loss
719-255 Special rules
719-260 Special test for utilising a loss because a company maintains the same owners
719-265 What is the test company?
719-270 Assumptions about the test company having made the loss for an income year
719-275 Assumptions about nothing happening to affect direct and indirect ownership of the test company
719-280 Assumptions about the test company failing to meet the conditions in section 165-12
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Business continuity test and change of head company
719-285 Business continuity test and change of head company
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Bundles of losses and their available fractions
719-300 Application
719-305 Subdivision 707-C affects utilisation of losses made by ongoing head company while it was head company
719-310 Adjustment of available fractions for bundles of losses previously transferred to ongoing head company
719-315 Further adjustment of available fractions for all bundles
719-320 Limit on utilising losses other than the prior group losses
719-325 Cancellation of all losses in a bundle
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Subdivision 719-H—Imputation issues
719-425 Guide to Subdivision 719-H
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Operative provisions
719-430 Transfer of franking account balance on cessation event
719-435 Distributions by subsidiary members of MEC group taken to be distributions by head company
Subdivision 719-I—Bad debts
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Guide to Subdivision 719-I
719-450 What this Subdivision is about
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Maintaining the same ownership to be able to deduct bad debt
719-455 Special test for deducting a bad debt because a company maintains the same owners
719-460 Assumptions about nothing happening to affect direct and indirect ownership of the test company
719-465 Assumptions about the test company failing to meet the conditions in section 165-123
Subdivision 719-J—MEC group cost setting rules: leaving cases
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Guide to Subdivision 719-J
719-500 What this Subdivision is about
719-505 Application and object of this Subdivision
719-510 Modified operation of paragraphs 711-15(1)(b) and (c)
Subdivision 719-K—MEC group cost setting rules: pooling cases
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Guide to Subdivision 719-K
719-550 What this Subdivision is about
719-555 Application and object of this Subdivision
719-560 Pooled interests
719-565 Setting cost of reset interests
719-570 Cost setting amount
Subdivision 719-T—Interactions between this Part and other areas of the income tax law: special rules for MEC groups
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How Subdivision 165-CC applies to MEC groups
719-700 Changeover times under section 165-115C or 165-115D
719-705 Additional changeover times for head company of MEC group
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How Subdivision 165-CD applies to MEC groups
719-720 Alteration times under section 165-115L or 165-115M
719-725 Additional alteration times for head company of MEC group
719-730 Some alteration times only affect interests in top company
719-735 Some alteration times affect only pooled interests
719-740 Head company does not have relevant equity or debt interest in a loss company if widely held top company does not have such an interest
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How indirect value shifting rules apply to a MEC group
719-755 Effect on MEC group cost setting rules if head company is losing entity or gaining entity for indirect value shift
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Cancelling loss on realisation event for direct or indirect interest in a subsidiary member of a MEC group
719-775 Cancellation of loss
719-780 Exception for pooled interests in eligible tier-1 companies
719-785 Exception for interests in top company
719-790 Exception for interests in entity leaving MEC group
719-795 Exception if loss attributable to certain matters
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Division 721—Liability for payment of tax where head company fails to pay on time
721-1 What this Division is about
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Object
721-5 Object of this Division
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When this Division operates
721-10 When this Division operates
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Joint and several liability of contributing member
721-15 Head company and contributing members jointly and severally liable to pay group liability
721-17 Notice of joint and several liability for general interest charge
721-20 Limit on liability where group first comes into existence
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Tax sharing agreements
721-25 When a group liability is covered by a tax sharing agreement
721-30 TSA contributing members liable for contribution amounts
721-32 Notice of general interest charge liability under TSA
721-35 When a TSA contributing member has left the group clear of the group liability
721-40 TSA liability and group liability are linked
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Volume 9
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Chapter 3—Specialist liability rules
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Part 3-95—Value shifting
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Division 723—Direct value shifting by creating right over non-depreciating asset
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Subdivision 723-A—Reduction in loss from realising non-depreciating asset
723-1 Object
723-10 Reduction in loss from realising non-depreciating asset over which right has been created
723-15 Reduction in loss from realising non-depreciating asset at the same time as right is created over it
723-20 Exceptions
723-25 Realisation event that is only a partial realisation
723-35 Multiple rights created to take advantage of the $50,000 threshold
723-40 Application to CGT asset that is also trading stock or revenue asset
723-50 Effects if right created over underlying asset is also trading stock or a revenue asset
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Subdivision 723-B—Reducing reduced cost base of interests in entity that acquires non-depreciating asset under roll-over
723-105 Reduced cost base of interest reduced when interest realised at a loss
723-110 Direct and indirect roll-over replacement for underlying asset
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Division 725—Direct value shifting affecting interests in companies and trusts
725-1 What this Division is about
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Subdivision 725-A—Scope of the direct value shifting rules
725-45 Main object
725-50 When a direct value shift has consequences under this Division
725-55 Controlling entity test
725-65 Cause of the value shift
725-70 Consequences for down interest only if there is a material decrease in its market value
725-80 Who is an affected owner of a down interest?
725-85 Who is an affected owner of an up interest?
725-90 Direct value shift that will be reversed
725-95 Direct value shift resulting from reversal
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Subdivision 725-B—What is a direct value shift
725-145 When there is a direct value shift
725-150 Issue of equity or loan interests at a discount
725-155 Meaning of down interests, decrease time, up interests and increase time
725-160 What is the nature of a direct value shift?
725-165 If market value decrease or increase is only partly attributable to the scheme
Subdivision 725-C—Consequences of a direct value shift
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General
725-205 Consequences depend on character of down interests and up interests
725-210 Consequences for down interests depend on pre-shift gains and losses
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Special cases
725-220 Neutral direct value shifts
725-225 Issue of bonus shares or units
725-230 Off-market buy-backs
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Subdivision 725-D—Consequences for down interest or up interest as CGT asset
725-240 CGT consequences; meaning of adjustable value
725-245 Table of taxing events generating a gain for interests as CGT assets
725-250 Table of consequences for adjustable values of interests as CGT assets
725-255 Multiple CGT consequences for the same down interest or up interest
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Subdivision 725-E—Consequences for down interest or up interest as trading stock or a revenue asset
725-310 Consequences for down interest or up interest as trading stock
725-315 Adjustable value of trading stock
725-320 Consequences for down interest or up interest as a revenue asset
725-325 Adjustable value of revenue asset
725-335 How to work out those consequences
725-340 Multiple trading stock or revenue asset consequences for the same down interest or up interest
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Subdivision 725-F—Value adjustments and taxed gains
725-365 Decreases in adjustable values of down interests (with pre-shift gains), and taxing events generating a gain
725-370 Uplifts in adjustable values of up interests under certain table items
725-375 Uplifts in adjustable values of up interests under other table items
725-380 Decreases in adjustable value of down interests (with pre-shift losses)
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Division 727—Indirect value shifting affecting interests in companies and trusts, and arising from non-arm’s length dealings
727-1 What this Division is about
727-5 What is an indirect value shift?
727-10 How does this Division deal with indirect value shifts?
727-15 When does an indirect value shift have consequences under this Division?
727-25 Effect of this Division on realisations at a loss that occur before the nature or extent of an indirect value shift can be fully determined
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Subdivision 727-A—Scope of the indirect value shifting rules
727-95 Main object
727-100 When an indirect value shift has consequences under this Division
727-105 Ultimate controller test
727-110 Common-ownership nexus test (if both losing and gaining entities are closely held)
727-125 No consequences if losing entity is a complying superannuation entity etc.
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Subdivision 727-B—What is an indirect value shift
727-150 How to determine whether a scheme results in an indirect value shift
727-155 Providing economic benefits
727-160 When an economic benefit is provided in connection with a scheme
727-165 Preventing double-counting of economic benefits
Subdivision 727-C—Exclusions
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Guide to Subdivision 727-C
727-200 What this Subdivision is about
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General
727-215 Amount does not exceed $50,000
727-220 Disposal of asset at cost, or at undervalue if full value is not reflected in adjustable values of equity or loan interests in the losing entity
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Indirect value shifts involving services
727-230 Services provided by losing entity to gaining entity for at least their direct cost
727-235 Services provided by gaining entity to losing entity for no more than a commercially realistic price
727-240 What services certain provisions apply to
727-245 How to work out certain amounts for the purposes of sections 727-230 and 727-235
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Anti-overlap provisions
727-250 Distribution by an entity to a member or beneficiary
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Miscellaneous
727-260 Shift down a wholly-owned chain of entities
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Subdivision 727-D—Working out the market value of economic benefits
727-300 What the rules in this Subdivision are for
727-315 Transfer, for its adjustable value, of depreciating asset acquired for less than $1,500,000
Subdivision 727-E—Key concepts
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Ultimate controller
727-350 Ultimate controller
727-355 Control (for value shifting purposes) of a company
727-360 Control (for value shifting purposes) of a fixed trust
727-365 Control (for value shifting purposes) of a non-fixed trust
727-370 Preventing double counting for percentage stake tests
727-375 Tests in this Subdivision are exhaustive
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Common-ownership nexus and ultimate stake of a particular percentage
727-400 When 2 entities have a common-ownership nexus within a period
727-405 Ultimate stake of a particular percentage in a company
727-410 Ultimate stake of a particular percentage in a fixed trust
727-415 Rules for tracing
Subdivision 727-F—Consequences of an indirect value shift
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Guide to Subdivision 727-F
727-450 What this Subdivision is about
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Operative provisions
727-455 Consequences of the indirect value shift
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Affected interests
727-460 Affected interests in the losing entity
727-465 Affected interests in the gaining entity
727-470 Exceptions
727-520 Equity or loan interest and related terms
727-525 Indirect equity or loan interest
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Affected owners
727-530 Who are the affected owners
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Choices about method to be used
727-550 Choosing the adjustable value method
727-555 Giving other affected owners information about the choice
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Subdivision 727-G—The realisation time method
727-600 What this Subdivision is about
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Operative provisions
727-610 Consequences of indirect value shift
727-615 Reduction of loss on realisation event for affected interest in losing entity
727-620 Reduction of gain on realisation event for affected interest in gaining entity
727-625 Total gain reductions not to exceed total loss reductions
727-630 How cap in section 727-625 applies if affected interest is also trading stock or a revenue asset
727-635 Splitting an equity or loan interest
727-640 Merging equity or loan interests
727-645 Effect of CGT roll-over
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Further exclusion for certain 95% services indirect value shifts if realisation time method must be used
727-700 When 95% services indirect value shift is excluded
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95% services indirect value shifts that are not excluded
727-705 Another provision of the income tax law affects amount related to services by at least $100,000
727-710 Ongoing or recent service arrangement reduces value of losing entity by at least $100,000
727-715 Service arrangements reduce value of losing entity that is a group service provider by at least $500,000
727-720 Abnormal service arrangement reduces value of losing entity that is not a group service provider by at least $500,000
727-725 Meaning of predominantly-services indirect value shift
Subdivision 727-H—The adjustable value method
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Guide to Subdivision 727-H
727-750 What this Subdivision is about
727-755 Consequences of indirect value shift
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Reductions of adjustable value
727-770 Reduction under the adjustable value method
727-775 Has there been a disaggregated attributable decrease?
727-780 Working out the reduction on a loss-focussed basis
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Uplifts of adjustable value
727-800 Uplift under the attributable increase method
727-805 Has there been a disaggregated attributable increase?
727-810 Scaling-down formula
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Consequences of the method for various kinds of assets
727-830 CGT assets
727-835 Trading stock
727-840 Revenue assets
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Subdivision 727-K—Reduction of loss on equity or loan interests realised before the IVS time
727-850 Consequences of scheme under this Subdivision
727-855 Presumed indirect value shift
727-860 Conditions about the prospective gaining entity
727-865 How other provisions of this Division apply to support this Subdivision
727-870 Effect of CGT roll-over
727-875 Application to CGT asset that is also trading stock or revenue asset
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Subdivision 727-L—Indirect value shift resulting from a direct value shift
727-905 How this Subdivision affects the rest of this Division
727-910 Treatment of value shifted under the direct value shift
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Chapter 4—International aspects of income tax
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Part 4-5—General
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Division 764—Source rules
764-1 What this Division is about
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Subdivision 764-A—Source rules
764-5 Source rule for international tax agreements
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Division 768—Foreign non-assessable income and gains
Subdivision 768-A—Returns on foreign investment
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Guide to Subdivision 768-A
768-1 What this Subdivision is about
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Foreign equity distributions on participation interests
768-5 Foreign equity distributions on participation interests
768-7 Foreign equity distributions entitled to a foreign income tax deduction
768-10 Meaning of foreign equity distribution
768-15 Participation test—minimum 10% participation
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Subdivision 768-B—Some items of income that are exempt from income tax
768-100 Foreign government officials in Australia
768-105 Compensation arising out of Second World War
768-110 Foreign residents deriving income from certain activities in Australia’s exclusive economic zone or on or above Australia’s continental shelf
Subdivision 768-G—Reduction in capital gains and losses arising from CGT events in relation to certain voting interests in active foreign companies
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Guide to Subdivision 768-G
768-500 What this Subdivision is about
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Operative provisions
768-505 Reducing a capital gain or loss from certain CGT events in relation to certain voting interests
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Active foreign business asset percentage
768-510 Active foreign business asset percentage
768-515 Choices to apply market value method or book value method
768-520 Market value method—choice made under subsection 768-515(1)
768-525 Book value method—choice made under subsection 768-515(2)
768-530 Active foreign business asset percentage—modifications for foreign life insurance companies and foreign general insurance companies
768-533 Foreign company that is a FIF using CFC calculation method—treatment as AFI subsidiary under this Subdivision
768-535 Modified rules for foreign wholly-owned groups
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Types of assets of a foreign company
768-540 Active foreign business assets of a foreign company
768-545 Assets included in the total assets of a foreign company
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Voting percentages in a company
768-550 Direct voting percentage in a company
768-555 Indirect voting percentage in a company
768-560 Total voting percentage in a company
Subdivision 768-R—Temporary residents
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Guide to Subdivision 768-R
768-900 What this Subdivision is about
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Operative provisions
768-905 Objects
768-910 Income derived by temporary resident
768-915 Certain capital gains and capital losses of temporary resident to be disregarded
768-950 Individual becoming an Australian resident
768-955 Temporary resident who ceases to be temporary resident but remains an Australian resident
768-960 Temporary resident not attributable taxpayer for purposes of controlled foreign companies rules
768-970 Modification of rules for accruals system of taxation of certain non-resident trust estates
768-980 Interest paid by temporary resident
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Division 770—Foreign income tax offsets
770-1 What this Division is about
770-5 Object
Subdivision 770-A—Entitlement rules for foreign income tax offsets
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Basic entitlement rule for foreign income tax offset
770-10 Entitlement to foreign income tax offset
770-15 Meaning of foreign income tax, credit absorption tax and unitary tax
Subdivision 770-B—Amount of foreign income tax offset
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Guide to Subdivision 770-B
770-65 What this Subdivision is about
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Operative provisions
770-70 Amount of foreign income tax offset
770-75 Foreign income tax offset limit
770-80 Increase in offset limit for tax paid on amounts to which section 23AI or 23AK of the Income Tax Assessment Act 1936 apply
Subdivision 770-C—Rules about payment of foreign income tax
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Rules about when foreign tax is paid
770-130 When foreign income tax is considered paid—taxes paid by someone else
770-135 Foreign income tax paid by CFCs on attributed amounts
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Rules about when foreign tax is considered not paid
770-140 When foreign income tax is considered not paid—anti-avoidance rule
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Subdivision 770-D—Administration
770-190 Amendment of assessments
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Division 775—Foreign currency gains and losses
775-5 What this Division is about
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Subdivision 775-A—Objects of this Division
775-10 Objects of this Division
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Subdivision 775-B—Realisation of forex gains or losses
775-15 Forex realisation gains are assessable
775-20 Certain forex realisation gains are exempt income
775-25 Certain forex realisation gains are non-assessable non-exempt income
775-27 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
775-168 Exception—disposal or redemption of traditional securities
775-175 Application to things happening before commencement
Subdivision 775-C—Roll-over relief for facility agreements
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Guide to Subdivision 775-C
775-180 What this Subdivision is about
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Operative provisions
775-185 What is a facility agreement?
775-190 What is an eligible security?
775-195 You may choose roll-over relief for a facility agreement
775-200 Forex realisation event 4 does not apply
775-205 What is a roll-over?
775-210 Notional loan
775-215 Discharge of obligation to pay the principal amount of a notional loan under a facility agreement—forex realisation event 6
775-220 Material variation of a facility agreement—forex realisation event 7
Subdivision 775-D—Qualifying forex accounts that pass the limited balance test
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Guide to Subdivision 775-D
775-225 What this Subdivision is about
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Operative provisions
775-230 Election to have this Subdivision apply to one or more qualifying forex accounts
775-235 Variation of election
775-240 Withdrawal of election
775-245 When does a qualifying forex account pass the limited balance test?
775-250 Tax consequences of passing the limited balance test
775-255 Notional realisation when qualifying forex account starts to pass the limited balance test
775-260 Modification of tax recognition time
Subdivision 775-E—Retranslation for qualifying forex accounts
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Guide to Subdivision 775-E
775-265 What this Subdivision is about
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Operative provisions
775-270 You may choose retranslation for a qualifying forex account
775-275 Withdrawal of choice
775-280 Tax consequences of choosing retranslation for an account
775-285 Retranslation of gains and losses relating to a qualifying forex account—forex realisation event 8
Subdivision 775-F—Retranslation under foreign exchange retranslation election under Subdivision 230-D
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Guide to Subdivision 775-F
775-290 What this Subdivision is about
775-295 When this Subdivision applies
775-300 Tax consequences of choosing retranslation for arrangement
775-305 Retranslation of gains and losses relating to arrangement to which foreign exchange retranslation election applies—forex realisation event 9
775-310 When election ceases to apply to arrangement
775-315 Balancing adjustment when election ceases to apply to arrangement
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Division 802—Foreign residents’ income with an underlying foreign source
Subdivision 802-A—Conduit foreign income
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Guide to Subdivision 802-A
802-5 What this Subdivision is about
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Operative provisions
802-10 Objects
802-15 Foreign residents—exempting CFI from Australian tax
802-17 Trust estates and foreign resident beneficiaries—exempting CFI from Australian tax
802-20 Distributions between Australian corporate tax entities—non-assessable non-exempt income
802-25 Conduit foreign income of an Australian corporate tax entity
802-30 Foreign source income amounts
802-35 Capital gains and losses
802-40 Effect of foreign income tax offset on conduit foreign income
802-45 Previous declarations of conduit foreign income
802-50 Receipt of an unfranked distribution from another Australian corporate tax entity
802-55 No double benefits
802-60 No streaming of distributions
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Division 815—Cross-border transfer pricing
Subdivision 815-A—Treaty-equivalent cross-border transfer pricing rules
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Guide to Subdivision 815-A
815-1 What this Subdivision is about
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Operative provisions
815-5 Object
815-10 Transfer pricing benefit may be negated
815-15 When an entity gets a transfer pricing benefit
815-20 Cross-border transfer pricing guidance
815-25 Modified transfer pricing benefit for thin capitalisation
815-30 Determinations negating transfer pricing benefit
815-35 Consequential adjustments
815-40 No double taxation
Subdivision 815-B—Arm’s length principle for cross-border conditions between entities
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Guide to Subdivision 815-B
815-101 What this Subdivision is about
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Operative provisions
815-105 Object
815-110 Operation of Subdivision
815-115 Substitution of arm’s length conditions
815-120 When an entity gets a transfer pricing benefit
815-125 Meaning of arm’s length conditions
815-130 Relevance of actual commercial or financial relations
815-135 Guidance
815-140 Modification for thin capitalisation
815-145 Consequential adjustments
815-150 Amendment of assessments
Subdivision 815-C—Arm’s length principle for permanent establishments
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Guide to Subdivision 815-C
815-201 What this Subdivision is about
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Operative provisions
815-205 Object
815-210 Operation of Subdivision
815-215 Substitution of arm’s length profits
815-220 When an entity gets a transfer pricing benefit
815-225 Meaning of arm’s length profits
815-230 Source rules for certain arm’s length profits
815-235 Guidance
815-240 Amendment of assessments
Subdivision 815-D—Special rules for trusts and partnerships
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Guide to Subdivision 815-D
815-301 What this Subdivision is about
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Operative provisions
815-305 Special rule for trusts
815-310 Special rules for partnerships
Subdivision 815-E—Reporting obligations for country by country reporting entities
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Guide to Subdivision 815-E
815-350 What this Subdivision is about
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Operative provisions
815-355 Requirement to give statements
815-360 Replacement reporting periods
815-365 Exemptions
815-370 Meaning of country by country reporting entity (or CBC reporting entity)
815-375 Meaning of country by country reporting parent (or CBC reporting parent)
815-380 Meaning of country by country reporting group (or CBC reporting group)
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Division 820—Thin capitalisation rules
820-1 What this Division is about
820-5 Does this Division apply to an entity?
820-10 Map of Division
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Subdivision 820-A—Preliminary
820-30 Object of Division
820-32 Exemption for private or domestic assets and non-debt liabilities
820-35 Application—$2 million threshold
820-37 Application—assets threshold
820-39 Exemption of certain special purpose entities
820-40 Meaning of debt deduction
Subdivision 820-B—Thin capitalisation rules for outward investing entities (non-ADI)
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Guide to Subdivision 820-B
820-65 What this Subdivision is about
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Operative provisions
820-85 Thin capitalisation rule for outward investing entities (non-ADI)
820-90 Maximum allowable debt
820-95 Safe harbour debt amount—outward investor (general)
820-100 Safe harbour debt amount—outward investor (financial)
820-105 Arm’s length debt amount
820-110 Worldwide gearing debt amount—outward investor that is not also an inward investment vehicle
820-111 Worldwide gearing debt amount—outward investor that is also an inward investment vehicle
820-115 Amount of debt deduction disallowed
820-120 Application to part year periods
Subdivision 820-C—Thin capitalisation rules for inward investing entities (non-ADI)
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Guide to Subdivision 820-C
820-180 What this Subdivision is about
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Operative provisions
820-185 Thin capitalisation rule for inward investing entities (non-ADI)
820-190 Maximum allowable debt
820-195 Safe harbour debt amount—inward investment vehicle (general)
820-200 Safe harbour debt amount—inward investment vehicle (financial)
820-205 Safe harbour debt amount—inward investor (general)
820-210 Safe harbour debt amount—inward investor (financial)
820-215 Arm’s length debt amount
820-216 Worldwide gearing debt amount—inward investment vehicle (general)
820-217 Worldwide gearing debt amount—inward investment vehicle (financial)
820-218 Worldwide gearing debt amount—inward investor (general)
820-219 Worldwide gearing debt amount—inward investor (financial)
820-220 Amount of debt deduction disallowed
820-225 Application to part year periods
Subdivision 820-D—Thin capitalisation rules for outward investing entities (ADI)
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Guide to Subdivision 820-D
820-295 What this Subdivision is about
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Operative provisions
820-300 Thin capitalisation rule for outward investing entities (ADI)
820-305 Minimum capital amount
820-310 Safe harbour capital amount
820-315 Arm’s length capital amount
820-320 Worldwide capital amount
820-325 Amount of debt deduction disallowed
820-330 Application to part year periods
Subdivision 820-E—Thin capitalisation rules for inward investing entities (ADI)
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Guide to Subdivision 820-E
820-390 What this Subdivision is about
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Operative provisions
820-395 Thin capitalisation rule for inward investing entities (ADI)
820-400 Minimum capital amount
820-405 Safe harbour capital amount
820-410 Arm’s length capital amount
820-415 Amount of debt deduction disallowed
820-420 Application to part year periods
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Subdivision 820-EA—Some financial entities may choose to be treated as ADIs
820-430 When choice can be made, and what effect it has
820-435 Conditions
820-440 Revocation of choice
820-445 How this Subdivision interacts with Subdivision 820-FA
Subdivision 820-FA—How the thin capitalisation rules apply to consolidated groups and MEC groups
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Guide to Subdivision 820-FA
820-579 What this Subdivision is about
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Operative provisions
820-581 How this Division applies to head company for income year in which group comes into existence or ceases to exist
820-583 Classification of head company
820-584 Exempt special purpose entities treated as not being member of group
820-585 Exemption for consolidated group headed by foreign-controlled Australian ADI or its holding company
820-587 Additional application of Subdivision 820-D to MEC group that includes foreign-controlled Australian ADI
820-588 Choice to treat specialist credit card institutions as being financial entities and not ADIs
820-589 How Subdivision 820-D applies to a MEC group
Subdivision 820-FB—Grouping branches of foreign banks and foreign financial entities with a consolidated group, MEC group or single Australian resident company
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Guide to Subdivision 820-FB
820-595 What this Subdivision is about
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Choice to group with branches of foreign banks and foreign financial entities
820-597 Choice by head company of consolidated group or MEC group
820-599 Choice by Australian resident company outside consolidatable group and MEC group
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Effect of choice
820-601 Application
820-603 General
820-605 Effect on establishment entity 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
820-610 Choice not to be outward investing entity (ADI) or inward investing entity (ADI)
820-611 Values to be based on what would be in consolidated accounts for group
820-613 How Subdivision 820-D applies
820-615 How Subdivision 820-E applies
Subdivision 820-G—Calculating the average values
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Guide to Subdivision 820-G
820-625 What this Subdivision is about
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How to calculate the average values
820-630 Methods of calculating average values
820-635 The opening and closing balances method
820-640 The 3 measurement days method
820-645 The frequent measurement method
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Special rules about values and valuation
820-675 Amount to be expressed in Australian currency
820-680 Valuation of assets, liabilities and equity capital
820-682 Recognition of assets and liabilities—modifying application of accounting standards
820-685 Valuation of debt capital
820-690 Commissioner’s power
Subdivision 820-H—Control of entities
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Guide to Subdivision 820-H
820-740 What this Subdivision is about
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Australian controller of a foreign entity
820-745 What is an Australian controlled foreign entity?
820-750 What is an Australian controller of a controlled foreign company?
820-755 What is an Australian controller of a controlled foreign trust?
820-760 What is an Australian controller of a controlled foreign corporate limited partnership?
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Foreign controlled Australian entity
820-780 What is a foreign controlled Australian entity?
820-785 What is a foreign controlled Australian company?
820-790 What is a foreign controlled Australian trust?
820-795 What is a foreign controlled Australian partnership?
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Thin capitalisation control interest
820-815 General rule about thin capitalisation control interest in a company, trust or partnership
820-820 Special rules about calculating TC control interest held by an entity
820-825 Special rules about calculating TC control interests held by a group of entities
820-830 Special rules about determining percentage of TC control interest
820-835 Commissioner’s power
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TC direct control interest, TC indirect control interest and TC control tracing interest
820-855 TC direct control interest in a company
820-860 TC direct control interest in a trust
820-865 TC direct control interest in a partnership
820-870 TC indirect control interest in a company, trust or partnership
820-875 TC control tracing interest in a company, trust or partnership
Subdivision 820-HA—Controlled foreign entity debt and controlled foreign entity equity
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Guide to Subdivision 820-HA
820-880 What this Subdivision is about
820-881 Application
820-885 What is controlled foreign entity debt?
820-890 What is controlled foreign entity equity?
Subdivision 820-I—Associate entities
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Guide to Subdivision 820-I
820-900 What this Subdivision is about
820-905 Associate entity
820-910 Associate entity debt
820-915 Associate entity equity
820-920 Associate entity excess amount
Subdivision 820-J—Equity interest in a trust or partnership
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Guide to Subdivision 820-J
820-925 What this Subdivision is about
820-930 Equity interest in a trust or partnership
Subdivision 820-JA—Worldwide debt and equity concepts
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Guide to Subdivision 820-JA
820-931 What this Subdivision is about
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Operative provisions
820-932 Worldwide debt and worldwide equity
820-933 Statement worldwide debt, statement worldwide equity and statement worldwide assets
820-935 Meaning of audited consolidated financial statements
Subdivision 820-K—Zero-capital amount
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Guide to Subdivision 820-K
820-940 What this Subdivision is about
820-942 How to work out the zero-capital amount
Subdivision 820-KA—Cost-free debt capital and excluded equity interests
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Guide to Subdivision 820-KA
820-945 What this Subdivision is about
820-946 Cost-free debt capital and excluded equity interest
Subdivision 820-L—Record keeping requirements
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Guide to Subdivision 820-L
820-950 What this Subdivision is about
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Records about Australian permanent establishments
820-960 Records about Australian permanent establishments
820-962 Records about Australian permanent establishments—exemptions from Australian accounting standards
820-965 Review of Commissioner’s decision
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Records about arm’s length amounts
820-980 Records about arm’s length debt amount and arm’s length capital amount
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Offences committed by certain entities
820-990 Offences—treatment of partnerships
820-995 Offences—treatment of unincorporated companies
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Division 830—Foreign hybrids
830-1 What this Division is about
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Subdivision 830-A—Meaning of “foreign hybrid”
830-5 Foreign hybrid
830-10 Foreign hybrid limited partnership
830-15 Foreign hybrid company
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Subdivision 830-B—Extension of normal partnership provisions to foreign hybrid companies
830-20 Treatment of company as a partnership
830-25 Partners are the shareholders in the company
830-30 Individual interest of a partner in net income etc. equals percentage of notional distribution of company’s profits
830-35 Partner’s interest in assets
830-40 Control and disposal of share in partnership income
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Subdivision 830-C—Special rules applicable while an entity is a foreign hybrid
830-45 Partner’s revenue and net capital losses from foreign hybrid not to exceed partner’s loss exposure amount
830-50 Deduction etc. where partner’s foreign hybrid revenue loss amount and foreign hybrid net capital loss amount are less than partner’s loss exposure amount
830-55 Meaning of foreign hybrid net capital loss amount
830-60 Meaning of loss exposure amount
830-65 Meaning of outstanding foreign hybrid revenue loss amount
830-70 Meaning of outstanding foreign hybrid net capital loss amount
830-75 Extended meaning of subject to foreign tax
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Subdivision 830-D—Special rules applicable when an entity becomes or ceases to be a foreign hybrid
830-80 Setting the tax cost of partners’ interests in the assets of an entity that becomes a foreign hybrid
830-85 Setting the tax cost of assets of an entity when it ceases to be a foreign hybrid
830-90 What the expression tax cost is set means
830-95 What the expression tax cost setting amount means
830-100 What the expression tax cost means
830-105 What the expression asset-based income tax regime means
830-110 No disposal of assets etc. on entity becoming or ceasing to be a foreign hybrid
830-115 Tax losses cannot be transferred to a foreign hybrid
830-120 End of CFC’s last statutory accounting period
830-125 How long interest in asset, or asset, held
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Division 832—Hybrid mismatch rules
832-1 What this Division is about
Subdivision 832-A—Preliminary
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Guide to Subdivision 832-A
832-5 What this Subdivision is about
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Operative provisions
832-10 Entitlement to receive payment
832-15 Entitlement to receive non-cash benefits
832-20 Losses that arise from payments or parts of payments
832-25 Recipients and payers of a payment
832-30 How this Division applies to entities
832-35 Single entity rule otherwise not disregarded
832-40 Schemes outside Australia
832-45 Relationship between this Division and other charging provisions in this Act
832-50 Relationship between this Division and Division 820
832-55 Division does not affect foreign residence rules
832-60 Valuation of trading stock affected by hybrid mismatch rules
Subdivision 832-B—Concepts relating to mismatches
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Guide to Subdivision 832-B
832-100 What this Subdivision is about
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Operative provisions
832-105 When a payment gives rise to a deduction/non-inclusion mismatch
832-110 When a payment gives rise to a deduction/deduction mismatch
832-115 Disregard effect of Division in determining deductions
832-120 Meaning of foreign income tax deduction
832-125 Meaning of subject to Australian income tax
832-130 Meaning of subject to foreign income tax
832-135 Safe harbour for translation rates
Subdivision 832-C—Hybrid financial instrument mismatch
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Guide to Subdivision 832-C
832-175 What this Subdivision is about
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Operative provisions
832-180 Deduction not allowable—Australian primary response
832-185 Inclusion in assessable income—Australian secondary response
832-190 Exception where entity not a party to the structured arrangement
832-195 When a hybrid financial instrument mismatch is an offshore hybrid mismatch
832-200 When a payment gives rise to a hybrid financial instrument mismatch
832-205 Meaning of Division 832 control group
832-210 Meaning of structured arrangement
832-215 Hybrid mismatch
832-220 Hybrid requirement—payments under financial instruments
832-225 Hybrid requirement—payments under transfers of certain financial instruments
832-230 Hybrid mismatch—integrity rule for substitute payments
832-235 Extended operation of this Subdivision in relation to concessional foreign taxes
832-240 Adjustment if hybrid financial instrument payment is income in a later year
Subdivision 832-D—Hybrid payer mismatch
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Guide to Subdivision 832-D
832-280 What this Subdivision is about
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Operative provisions
832-285 Deduction not allowable—Australian primary response
832-290 Inclusion in assessable income—Australian secondary response
832-295 Exception where entity not a party to the structured arrangement
832-300 When a hybrid payer mismatch is an offshore hybrid mismatch
832-305 When a payment gives rise to a hybrid payer mismatch
832-310 Hybrid mismatch
832-315 Hybrid requirement—assume payment was made to same recipient but by an ungrouped payer
832-320 Hybrid payer
832-325 Meaning of liable entity
832-330 Neutralising amount
832-335 Adjustment if hybrid payer has dual inclusion income in a later year
Subdivision 832-E—Reverse hybrid mismatch
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Guide to Subdivision 832-E
832-375 What this Subdivision is about
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Operative provisions
832-380 Deduction not allowable—Australian primary response
832-385 Exception where entity not a party to the structured arrangement
832-390 When a reverse hybrid mismatch is an offshore hybrid mismatch
832-395 When a payment gives rise to a reverse hybrid mismatch
832-400 Hybrid mismatch
832-405 Hybrid requirement—assume payment was made to an investor
832-410 Reverse hybrid
Subdivision 832-F—Branch hybrid mismatch
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Guide to Subdivision 832-F
832-450 What this Subdivision is about
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Operative provisions
832-455 Deduction not allowable
832-460 Exception where entity not a party to the structured arrangement
832-465 When a branch hybrid mismatch is an offshore hybrid mismatch
832-470 Branch hybrid mismatch
832-475 Hybrid mismatch
832-480 Hybrid requirement—payment made directly or indirectly to a branch hybrid
832-485 Branch hybrid
Subdivision 832-G—Deducting hybrid mismatch
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Guide to Subdivision 832-G
832-525 What this Subdivision is about
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Operative provisions
832-530 Deduction not allowable
832-535 Additional requirements for secondary response
832-540 When a deducting hybrid mismatch is an offshore hybrid mismatch
832-545 When an amount gives rise to a deducting hybrid mismatch
832-550 Deducting hybrid
832-555 Identifying a secondary response country
832-560 Neutralising amount
832-565 Adjustment if deducting hybrid has dual inclusion income in a later year
Subdivision 832-H—Imported hybrid mismatch
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Guide to Subdivision 832-H
832-605 What this Subdivision is about
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Operative provisions
832-610 Deduction not allowable
832-615 When a payment gives rise to an imported hybrid mismatch
832-620 Hybrid mismatch
832-625 Meaning of importing payment
832-630 Working out the amount of the imported hybrid mismatch
832-635 Carry forward of residual offshore hybrid mismatches
Subdivision 832-I—Dual inclusion income
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Guide to Subdivision 832-I
832-675 What this Subdivision is about
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Operative provisions
832-680 Dual inclusion income, and when an entity is eligible to apply it
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Subdivision 832-J—Integrity rule
832-720 What this Subdivision is about
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Operative provisions
832-725 Payments made to interposed foreign entity (integrity measure)—denial of deduction
832-730 Back to back arrangements, etc.
832-735 Determination may specify kinds of scheme and circumstances where no denial of deduction
Subdivision 832-K—Modifications for Division 230 (about taxation of financial arrangements)
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Guide to Subdivision 832-K
832-775 What this Subdivision is about
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Operative provisions
832-780 Section 832-20 applies to Division 230 losses
832-785 Adjusting Division 230 loss
832-790 Modifications relating to Division 230 gains and losses
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Division 840—Withholding taxes
840-1 What this Division is about
Subdivision 840-M—Managed investment trust withholding tax
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Guide to Subdivision 840-M
840-800 What this Subdivision is about
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Operative provisions
840-805 Liability for managed investment trust withholding tax
840-810 When managed investment trust withholding tax is payable
840-815 Certain income is non-assessable non-exempt income
840-820 Agency rules
Subdivision 840-S—Seasonal Labour Mobility Program withholding tax
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Guide to Subdivision 840-S
840-900 What this Subdivision is about
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Operative provisions
840-905 Liability for Seasonal Labour Mobility Program withholding tax
840-910 When Seasonal Labour Mobility Program withholding tax is payable
840-915 Certain income is non-assessable non-exempt income
840-920 Overpayment of Seasonal Labour Mobility Program withholding tax
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Division 842—Exempt Australian source income and gains of foreign residents
Subdivision 842-B—Some items of Australian source income of foreign residents that are exempt from income tax
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Guide to Subdivision 842-B
842-100 What this Subdivision is about
842-105 Amounts of Australian source ordinary income and statutory income that are exempt
Subdivision 842-I—Investment manager regime
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Guide to Subdivision 842-I
842-200 What this Subdivision is about
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Object of this Subdivision
842-205 Object of this Subdivision
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IMR concessions
842-210 IMR concessions apply only to foreign residents etc.
842-215 IMR concessions
842-220 Meaning of IMR entity
842-225 Meaning of IMR financial arrangement
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IMR widely held entities
842-230 Meaning of IMR widely held entity
842-235 Rules for determining total participation interests for the purposes of the widely held test
842-240 Extended meaning of IMR widely held entity—temporary circumstances outside entity’s control
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Independent Australian fund managers
842-245 Meaning of independent Australian fund manager
842-250 Reductions in IMR concessions if independent Australian fund manager entitled to substantial share of IMR entity’s income
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Division 855—Capital gains and foreign residents
855-1 What this Division is about
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Subdivision 855-A—Disregarding a capital gain or loss by foreign residents
855-5 Objects of this Subdivision
855-10 Disregarding a capital gain or loss from CGT events
855-15 When an asset is taxable Australian property
855-16 Meaning of permanent establishment article
855-20 Taxable Australian real property
855-25 Indirect Australian real property interests
855-30 Principal asset test
855-32 Disregard market value of duplicated non-TARP assets
855-35 Reducing a capital gain or loss from a business asset—Australian permanent establishments
855-40 Capital gains and losses of foreign residents through fixed trusts
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Subdivision 855-B—Becoming an Australian resident
855-45 Individual or company becomes an Australian resident
855-50 Trust becomes a resident trust
855-55 CFC becomes an Australian resident
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Division 880—Sovereign entities and activities
Subdivision 880-A—Basic concepts
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Guide to Subdivision 880-A
880-10 What this Subdivision is about
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Operative provisions
880-15 Meaning of sovereign entity
880-20 Meaning of sovereign entity group
Subdivision 880-B—Basic tax treatment of sovereign entities
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Guide to Subdivision 880-B
880-50 What this Subdivision is about
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Operative provisions
880-55 Sovereign entity liable to pay tax
880-60 Bodies politic of foreign countries and foreign government agencies treated as foreign residents
Subdivision 880-C—Sovereign immunity
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Guide to Subdivision 880-C
880-100 What this Subdivision is about
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Operative provisions
880-105 Sovereign entity’s income from membership interest etc. in trust or company—non-assessable non-exempt income
880-110 Sovereign entity’s deduction from membership interest etc.—loss not deductible
880-115 Sovereign entity’s capital gain from membership interest etc.—gain disregarded
880-120 Sovereign entity’s capital loss from membership interest etc. in trust or company—loss disregarded
880-125 Covered sovereign entities
880-130 Meaning of public non-financial entity and public financial entity
Subdivision 880-D—Consular activities
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Guide to Subdivision 880-D
880-200 What this Subdivision is about
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Operative provisions
880-205 Income from consular functions—non-assessable non-exempt income
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Volume 10
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Chapter 5—Administration
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Part 5-30—Record-keeping and other obligations
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Division 900—Substantiation rules
900-1 What this Division is about
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Subdivision 900-A—Application of Division
900-5 Application of the requirements of Division 900
900-10 Substantiation requirement
900-12 Application to recipients and payers of certain withholding payments
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Subdivision 900-B—Substantiating work expenses
900-15 Getting written evidence
900-20 Keeping travel records
900-25 Retaining the written evidence and travel records
900-30 Meaning of work expense
900-35 Exception for small total of expenses
900-40 Exception for laundry expenses below a certain limit
900-45 Exception for work expense related to award transport payment
900-50 Exception for domestic travel allowance expenses
900-55 Exception for overseas travel allowance expenses
900-60 Exception for reasonable overtime meal allowance
900-65 Crew members on international flights need not keep travel records
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Subdivision 900-C—Substantiating car expenses
900-70 Getting written evidence
900-75 Retaining the written evidence and odometer records
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Subdivision 900-D—Substantiating business travel expenses
900-80 Getting written evidence
900-85 Keeping travel records
900-90 Retaining the written evidence and travel records
900-95 Meaning of business travel expense
Subdivision 900-E—Written evidence
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Guide to Subdivision 900-E
900-100 What this Subdivision is about
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Operative provisions
900-105 Ways of getting written evidence
900-110 Time limits
900-115 Written evidence from supplier
900-120 Written evidence of depreciating asset expense
900-125 Evidence of small expenses
900-130 Evidence of expenses considered otherwise too hard to substantiate
900-135 Evidence on a payment summary
Subdivision 900-F—Travel records
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Guide to Subdivision 900-F
900-140 What this Subdivision is about
900-145 Purpose of a travel record
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Operative provisions
900-150 Recording activities in travel records
900-155 Showing which of your activities were income-producing activities
Subdivision 900-G—Retaining and producing records
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Guide to Subdivision 900-G
900-160 What this Subdivision is about
900-165 The retention period
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Operative provisions
900-170 Extending the retention period if an expense is disputed
900-175 Commissioner may tell you to produce your records
900-180 How to comply with a notice
900-185 What happens if you don’t comply
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Subdivision 900-H—Relief from effects of failing to substantiate
900-195 Commissioner’s discretion to review failure to substantiate
900-200 Reasonable expectation that substantiation would not be required
900-205 What if your documents are lost or destroyed?
Subdivision 900-I—Award transport payments
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Guide to Subdivision 900-I
900-210 What this Subdivision is about
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Operative provisions
900-215 Deducting an expense related to an award transport payment
900-220 Definition of award transport payment
900-225 Substituted industrial instruments
900-230 Changes to industrial instruments applied for before 29 October 1986
900-235 Changes to industrial instruments solely referable to matters in the instrument
900-240 Deducting in anticipation of receiving award transport payment
900-245 Effect of exception in this Subdivision on exception for small total of expenses
900-250 Effect of exception in this Subdivision on methods of calculating car expense deductions
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Part 5-35—Miscellaneous
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Division 905—Offences
905-5 Application of the Criminal Code
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Division 909—Regulations
909-1 Regulations
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Chapter 6—The Dictionary
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Part 6-1—Concepts and topics
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Division 950—Rules for interpreting this Act
950-100 What forms part of this Act
950-105 What does not form part of this Act
950-150 Guides, and their role in interpreting this Act
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Division 960—General
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Subdivision 960-B—Utilisation of tax attributes
960-20 Utilisation
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Subdivision 960-C—Foreign currency
960-49 Objects of this Subdivision
960-50 Translation of amounts into Australian currency
960-55 Application of translation rules
Subdivision 960-D—Functional currency
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Guide to Subdivision 960-D
960-56 What this Subdivision is about
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Operative provisions
960-59 Object of this Subdivision
960-60 You may choose a functional currency
960-61 Functional currency for calculating capital gains and losses on indirect Australian real property interests
960-65 Backdated startup choice
960-70 What is the applicable functional currency?
960-75 What is a transferor trust?
960-80 Translation rules
960-85 Special rule about translation—events that happened before the current choice took effect
960-90 Withdrawal of choice
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Subdivision 960-E—Entities
960-100 Entities
960-105 Certain entities treated as agents
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Subdivision 960-F—Distribution by corporate tax entities
960-115 Meaning of corporate tax entity
960-120 Meaning of distribution
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Subdivision 960-G—Membership of entities
960-130 Members of entities
960-135 Membership interest in an entity
960-140 Ordinary membership interest
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Subdivision 960-GP—Participation interests in entities
960-180 Total participation interest
960-185 Indirect participation interest
960-190 Direct participation interest
960-195 Non-portfolio interest test
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Subdivision 960-H—Abnormal trading in shares or units
960-220 Meaning of trading
960-225 Abnormal trading
960-230 Abnormal trading—5% of shares or units in one transaction
960-235 Abnormal trading—suspected 5% of shares or units in a series of transactions
960-240 Abnormal trading—suspected acquisition or merger
960-245 Abnormal trading—20% of shares or units traded over 60 day period
Subdivision 960-J—Family relationships
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Guide to Subdivision 960-J
960-250 What this Subdivision is about
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Operative provisions
960-252 Object of this Subdivision
960-255 Family relationships
Subdivision 960-M—Indexation
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Guide to Subdivision 960-M
960-260 What this Subdivision is about
960-265 The provisions for which indexation is relevant
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Operative provisions
960-270 Indexing amounts
960-275 Indexation factor
960-280 Index number
960-285 Indexation—superannuation and employment termination
960-290 Indexation—levy threshold for the major bank levy
Subdivision 960-S—Market value
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Guide to Subdivision 960-S
960-400 What this Subdivision is about
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Operative provisions
960-405 Effect of GST on market value of an asset
960-410 Market value of non-cash benefits
960-412 Working out market value using an approved method
960-415 Amounts that depend on market value
Subdivision 960-T—Meaning of Australia
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Guide to Subdivision 960-T
960-500 What this Subdivision is about
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Operative provisions
960-505 Meaning of Australia
Subdivision 960-U—Significant global entities
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Guide to Subdivision 960-U
960-550 What this Subdivision is about
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Operative provisions
960-555 Meaning of significant global entity
960-560 Meaning of global parent entity
960-565 Meaning of annual global income
960-570 Meaning of global financial statements
960-575 Meaning of notional listed company group
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Division 961—Notional tax offsets
Subdivision 961-A—Dependant (non-student child under 21 or student) notional tax offset
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Guide to Subdivision 961-A
961-1 What this Subdivision is about
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Entitlement to the notional tax offset
961-5 Who is entitled to the notional tax offset
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Amount of the notional tax offset
961-10 Amount of the dependant (non-student child under 21 or student) notional tax offset
961-15 Reduced amounts of the dependant (non-student child under 21 or student) notional tax offset
961-20 Reductions to take account of the dependant’s income
Subdivision 961-B—Dependant (sole parent of a non-student child under 21 or student) notional tax offset
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Guide to Subdivision 961-B
961-50 What this Subdivision is about
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Operative provisions
961-55 Who is entitled to the notional tax offset
961-60 Amount of the dependant (sole parent of a non-student child under 21 or student) notional tax offset
961-65 Reductions to take account of change in circumstances
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Division 974—Debt and equity interests
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Subdivision 974-A—General
974-1 What this Division is about
974-5 Overview of Division
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Operative provisions
974-10 Object
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Subdivision 974-B—Debt interests
974-15 Meaning of debt interest
974-20 The test for a debt interest
974-25 Exceptions to the debt test
974-30 Providing a financial benefit
974-35 Valuation of financial benefits—general rules
974-40 Valuation of financial benefits—rights and options to terminate early
974-45 Valuation of financial benefits—convertible interests
974-50 Valuation of financial benefits—value in present value terms
974-55 The debt interest and its issue
974-60 Debt interest arising out of obligations owed by a number of entities
974-65 Commissioner’s power
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Subdivision 974-C—Equity interests in companies
974-70 Meaning of equity interest in a company
974-75 The test for an equity interest
974-80 Equity interest arising from arrangement funding return through connected entities
974-85 Right or return contingent on aspects of economic performance
974-90 Right or return at discretion of company or connected entity
974-95 The equity interest
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Subdivision 974-D—Common provisions
974-100 Treatment of convertible and converting interests
974-105 Effect of action taken in relation to interest arising from related schemes
974-110 Effect of material change
974-112 Determinations by Commissioner
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Subdivision 974-E—Non-share distributions by a company
974-115 Meaning of non-share distribution
974-120 Meaning of non-share dividend
974-125 Meaning of non-share capital return
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Subdivision 974-F—Related concepts
974-130 Financing arrangement
974-135 Effectively non-contingent obligation
974-140 Ordinary debt interest
974-145 Benchmark rate of return
974-150 Schemes
974-155 Related schemes
974-160 Financial benefit
974-165 Convertible and converting interests
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Division 975—Concepts about companies
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Subdivision 975-A—General
975-150 Position to affect rights in relation to a company
975-155 When is an entity a controller (for CGT purposes) of a company?
975-160 When an entity has an associate-inclusive control interest
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Subdivision 975-G—What is a company’s share capital account?
975-300 Meaning of share capital account
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Subdivision 975-W—Wholly-owned groups of companies
975-500 Wholly-owned groups
975-505 What is a 100% subsidiary?
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Division 976—Imputation
976-1 Franked part of a distribution
976-5 Unfranked part of a distribution
976-10 The part of a distribution that is franked with an exempting credit
976-15 The part of a distribution that is franked with a venture capital credit
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Division 977—Realisation events, and the gains and losses they realise for income tax purposes
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CGT assets
977-5 Realisation event
977-10 Loss realised for income tax purposes
977-15 Gain realised for income tax purposes
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Trading stock
977-20 Realisation event
977-25 Disposal of trading stock: loss realised for income tax purposes
977-30 Ending of an income year: loss realised for income tax purposes
977-35 Disposal of trading stock: gain realised for income tax purposes
977-40 Ending of an income year: gain realised for income tax purposes
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Revenue assets
977-50 Meaning of revenue asset
977-55 Loss or gain realised for income tax purposes
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Division 980—Affordable housing
980-1 What this Division is about
Subdivision 980-A—Providing affordable housing
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Operative provisions
980-5 Providing affordable housing
980-10 Eligible community housing providers
980-15 Affordable housing certificates
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Part 6-5—Dictionary definitions
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Division 995—Definitions
995-1 Definitions
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Volume 11
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Endnotes
Endnote 1—About the endnotes
Endnote 2—Abbreviation key
Endnote 3—Legislation history
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Volume 12
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Endnotes
Endnote 4—Amendment history
