INCOME TAX ASSESSMENT ACT 1997

Table of Provisions

Long Title

CHAPTER 1--Introduction and core provisions

PART 1-1--PRELIMINARY

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

PART 1-2--A GUIDE TO THIS ACT

Division 2--How to use this Act

Subdivision 2-A--How to find your way around

2.1 The design

Subdivision 2-B--How the Act is arranged

2.5 The pyramid

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

Subdivision 2-D--The numbering system

2.25 Purposes

2.30 Gaps in the numbering

Subdivision 2-E--Status of Guides and other non-operative material

2.35 Non - operative material

2.40 Guides

2.45 Other material

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

PART 1-3--CORE PROVISIONS

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

Division 5--How to work out when to pay your income tax

5.1 What this Division is about

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

Division 6--Assessable income and exempt income

6.1 Diagram showing relationships among concepts in this Division

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

Division 8--Deductions

8.1 General deductions

8.5 Specific deductions

8.10 No double deductions

PART 1-4--CHECKLISTS OF WHAT IS COVERED BY CONCEPTS USED IN THE CORE PROVISIONS

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

Division 10--Particular kinds of assessable income

10.1 Effect of this Division

10.5 List of provisions about assessable income

Division 11--Particular kinds of non-assessable income

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

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

Division 12--Particular kinds of deductions

12.1 Effect of this Division

12.5 List of provisions about deductions

Division 13--Tax offsets

13.1A Effect of this Division

13.1 List of tax offsets

CHAPTER 2--Liability rules of general application

PART 2-1--ASSESSABLE INCOME

Division 15--Some items of assessable income

15.1 What this Division is about

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

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

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

20.10 What this Subdivision is about

20.15 How to use this Subdivision

20.20 Assessable recoupments

20.25 What is recoupment ?

20.30 Tables of deductions for which recoupments are assessable

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

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

20.100 What this Subdivision is about

20.105 Map of this Subdivision

20.110 Disposal of a leased car for profit

20.115 Working out the profit on the disposal

20.120 Meaning of notional depreciation

20.125 Disposal of a leased car for profit

20.130 Successive leases

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

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

20.160 Disposal of an interest in a car

PART 2-5--RULES ABOUT DEDUCTIBILITY OF PARTICULAR KINDS OF AMOUNTS

Division 25--Some amounts you can deduct

25.1 What this Division is about

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

25.125 COVID - 19 tests

Division 26--Some amounts you cannot deduct, or cannot deduct in full

26.1 What this Division is about

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 Payments to employees--labour mobility programs

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

26.96 Laminaria and Corallina decommissioning levy cannot be deducted

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

Division 27--Effect of input tax credits etc. on deductions

27.1 What this Division is about

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

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

Division 28--Car expenses

28.1 What this Division is about

28.5 Map of this Division

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

28.14 What this Subdivision is about

28.15 Choosing between the 2 methods

28.20 Rules governing choice of method

Subdivision 28-C--The "cents per kilometre" method

28.25 How to calculate your deduction

28.30 Capital allowances

28.35 Substantiation

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

28.105 What this Subdivision is about

28.110 Steps for keeping a log book

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

28.135 What this Subdivision is about

28.140 How to keep odometer records for a car for a period

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

28.160 What this Subdivision is about

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

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

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

30.20 Health

30.25 Education

30.30 Gifts that must be for certain purposes

30.35 Rural schools hostel buildings

30.37 Scholarship etc. funds

30.40 Research

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

30.50 Defence

30.55 The environment

30.60 Gifts to a National Parks body or conservation body must satisfy certain requirements

30.65 Industry, trade and design

30.70 The family

30.75 Marriage education organisations must be approved

30.80 International affairs

30.85 Developing country relief funds

30.86 Developed country disaster relief funds

30.90 Sports and recreation

30.95 Philanthropic trusts

30.100 Cultural organisations

30.102 Fire and emergency services

30.105 Other recipients

Subdivision 30-BA--Endorsement of deductible gift recipients

30.115 What this Subdivision is about

30.120 Endorsement by Commissioner

30.125 Entitlement to endorsement

30.130 Maintaining a gift fund

30.180 How this Subdivision applies to government entities

Subdivision 30-C--Rules applying to particular gifts of property

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

30.215 How much you can deduct

30.220 Reducing the amount you can deduct

30.225 Gift of property by joint owners

Subdivision 30-CA--Administrative requirements relating to ABNs

30.226 What this Subdivision is about

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

30.241 What this Subdivision is about

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

30.246 What this Subdivision is about

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-G--Index to this Division

30.315 Index

30.320 Effect of this Subdivision

Division 31--Conservation covenants

31.1 What this Division is about

31.5 Deduction for entering into conservation covenant

31.10 Requirements for fund, authority or institution

31.15 Valuations by the Commissioner

Division 32--Entertainment expenses

32.1 What this Division is about

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

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

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)

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

Subdivision 32-E--Anti-avoidance

32.75 Commissioner may treat you as having incurred entertainment expense

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

Division 34--Non-compulsory uniforms

34.1 What this Division is about

34.3 What you need to read

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

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 ?

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

Subdivision 34-D--Appeals from Industry Secretary's decision

34.40 Review of decisions by the Administrative Appeals Tribunal

Subdivision 34-E--The Register of Approved Occupational Clothing

34.45 Keeping of the Register

34.50 Changes to the Register

Subdivision 34-F--Approved occupational clothing guidelines

34.55 Approved occupational clothing guidelines

Subdivision 34-G--The Industry Secretary

34.60 Industry Secretary to give Commissioner information about entries

34.65 Delegation of powers by Industry Secretary

Division 35--Deferral of losses from non-commercial business activities

35.1 What this Division is about

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

Division 36--Tax losses of earlier income years

36.1 What this Division is about

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

36.30 What this Subdivision is about

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

36.50 What this Subdivision is about

36.55 Converting excess franking offsets into tax loss

CHAPTER 2--Liability rules of general application

PART 2-10----CAPITAL ALLOWANCES: RULES ABOUT DEDUCTIBILITY OF CAPITAL EXPENDITURE

Division 40--Capital allowances

40.1 What this Division is about

40.10 Simplified outline of this Division

Subdivision 40-A--Objects of Division

40.15 Objects of Division

Subdivision 40-B--Core provisions

40.20 What this Subdivision is about

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

40.170 What this Subdivision is about

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

40.280 What this Subdivision is about

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

40.420 What this Subdivision is about

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

40.510 What this Subdivision is about

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

40.625 What this Subdivision is about

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

40.725 What this Subdivision is about

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

40.825 What this Subdivision is about

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

40.1000 What this Subdivision is about

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

40.1095 What this Subdivision is about

40.1100 Meaning of farm - in farm - out arrangement and exploration benefit

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

40.1130 Consequences of certain exploration benefits provided under farm - in farm - out arrangements

Division 41--Additional deduction for certain new business investment

41.1 What this Division is about

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

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

43.5 What this Subdivision is about

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

43.60 What this Subdivision is about

43.65 Explanatory material

43.70 What is construction expenditure?

43.72 Meaning of forestry road , timber operation and timber mill building

43.75 Construction expenditure area

43.80 When capital works begin

43.85 Pools of construction expenditure

43.90 Table of intended use at time of completion of construction

43.95 Meaning of hotel building and apartment building

43.100 Certificates by Industry Innovation and Science Australia

Subdivision 43-C--Your area and your construction expenditure

43.105 What this Subdivision is about

43.110 Explanatory material

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

43.135 What this Subdivision is about

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

43.155 What this Subdivision is about

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

43.200 What this Subdivision is about

43.205 Explanatory material

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

43.225 What this Subdivision is about

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

43.245 What this Subdivision is about

43.250 The amount of the balancing deduction

43.255 Amounts received or receivable

43.260 Apportioning amounts received for destruction

Division 45--Disposal of leases and leased plant

45.1 What this Division is about

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

PART 2-15----NON-ASSESSABLE INCOME

Division 50--Exempt entities

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

50.100 What this Subdivision is about

50.105 Endorsement by Commissioner

50.110 Entitlement to endorsement

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

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

52.5 What this Subdivision is about

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

52.60 What this Subdivision is about

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

52.100 What this Subdivision is about

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

52.112 What this Subdivision is about

52.114 How much of a payment under the Military Rehabilitation and Compensation Act is exempt?

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

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

52.130 What this Subdivision is about

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

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

Subdivision 52-G--Exempt payments under the A New Tax System (Family Assistance) (Administration) Act 1999

52.150 Family assistance payments are exempt

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

52.185 Acute support packages are exempt

Division 53--Various exempt payments

53.1 What this Division is about

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

53.30 Territories Stolen Generations Redress Scheme payments are exempt

Division 54--Exemption for certain payments made under structured settlements and structured orders

54.1 What this Division is about

Subdivision 54-A--Definitions

54.5 Definitions

54.10 Meaning of structured settlement and structured order

Subdivision 54-B--Tax exemption for personal injury annuities

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

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

54.65 Exemption for certain payments to reversionary beneficiaries

54.70 Special provisions about trusts

54.75 Minister to arrange for review and report

Division 55--Payments that are not exempt from income tax

55.1 What this Division is about

55.5 Occupational superannuation payments

55.10 Education entry payments

Division 58--Capital allowances for depreciating assets previously owned by an exempt entity

58.1 What this Division is about

Subdivision 58-A--Application

58.5 Application of Division

58.10 When an asset is acquired in connection with the acquisition of a business

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

Division 59--Particular amounts of non-assessable non-exempt income

59.1 What this Division is about

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

59.100 Refund of large - scale generation shortfall charge

59.105 Cyclone Seroja--recovery grants

PART 2-20----TAX OFFSETS

Division 61--Generally applicable tax offsets

Subdivision 61-A--Dependant (invalid and carer) tax offset --

61.1 What this Subdivision is about

61.5 Object of this Subdivision

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

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 Income tax offset

61.100 What this Subdivision is about

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

61.200 What this Subdivision is about

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)

61.575 What this Subdivision is about

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

61.695 What this Subdivision is about

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

61.750 What this Subdivision is about

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

Division 63--Common rules for tax offsets

63.1 What this Division is about

63.10 Priority rules

Division 65--Tax offset carry forward rules

65.10 What this Division is about

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

Division 67--Refundable tax offset rules

67.10 What this Division is about

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

CHAPTER 2--Liability rules of general application

PART 2-25----TRADING STOCK

Division 70--Trading stock

70.1 What this Division is about

70.5 The 3 key features of tax accounting for trading stock

Subdivision 70-A--What is trading stock

70.10 Meaning of trading stock

70.12 Registered emissions units

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

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

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

70.75 What this Subdivision is about

70.80 Why the rules in this Subdivision are necessary

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

Subdivision 70-E--Miscellaneous

70.120 Deducting capital costs of acquiring trees

PART 2-40----RULES AFFECTING EMPLOYEES AND OTHER TAXPAYERS RECEIVING PAYG WITHHOLDING PAYMENTS

Division 80--General rules

80.1 What this Division is about

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

Division 82--Employment termination payments

82.1 What this Division is about

Subdivision 82-A--Employment termination payments: life benefits

82.5 What this Subdivision is about

82.10 Taxation of life benefit termination payments

Subdivision 82-B--Employment termination payments: death benefits

82.60 What this Subdivision is about

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

82.125 What this Subdivision is about

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 ?

Division 83--Other payments on termination of employment

83.1 What this Division is about

Subdivision 83-A--Unused annual leave payments

83.5 What this Subdivision is about

83.10 Unused annual leave payment is assessable

83.15 Entitlement to tax offset

Subdivision 83-B--Unused long service leave payments

83.65 What this Subdivision is about

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

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

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

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

83.165 What this Subdivision is about

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

83.230 What this Subdivision is about

83.235 Termination payments tax free--foreign resident period

83.240 Termination payments tax free--Australian resident period

Subdivision 83-E--Other payments

83.290 What this Subdivision is about

83.295 Termination payments made more than 12 months after termination etc.

Division 83A--Employee share schemes

83A.1 What this Division is about

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

83A.15 What this Subdivision is about

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

83A.100 What this Subdivision is about

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

83A.130 Takeovers and restructures

Subdivision 83A-D--Deduction for employer

83A.200 What this Subdivision is about

83A.205 Deduction for employer

83A.210 Timing of general deductions

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

PART 2-42----PERSONAL SERVICES INCOME

Division 84--Introduction

84.1 What this Part is about

84.5 Meaning of personal services income

84.10 This Part does not imply that individuals are employees

Division 85--Deductions relating to personal services income

85.1 What this Division is about

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

Division 86--Alienation of personal services income

86.1 What this Division is about

86.5 A simple description of what this Division does

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

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

Division 87--Personal services businesses

87.1 What this Division is about

87.5 Diagram showing the operation of this Division

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

Subdivision 87-B--Personal services business determinations

87.60 Personal services business determinations for individuals

87.65 Personal services business determinations for personal services entities

87.70 Applying etc. for personal services business determinations

87.75 When personal services business determinations have effect

87.80 Revoking personal services business determinations

87.85 Review of decisions

CHAPTER 3--Specialist liability rules

PART 3-1--CAPITAL GAINS AND LOSSES: GENERAL TOPICS

Division 100--A Guide to capital gains and losses

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

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?

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

net capital gain

income year

100.50 How to work out your net capital gain or loss

100.55 How do you comply with CGT?

100.60 Why keep records?

100.65 What records?

100.70 How long you need to keep records

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

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

Division 103--General rules

103.1 What this Division is about

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

Division 104--CGT events

104.1 What this Division is about

104.5 Summary of the CGT events

Subdivision 104-A--Disposals

104.10 Disposal of a CGT asset: CGT event A1

Subdivision 104-B--Use and enjoyment before title passes

104.15 Use and enjoyment before title passes: CGT event B1

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

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

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

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

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

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

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

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

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

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

Division 106--Entity making the gain or loss

106.1 What this Division is about

Subdivision 106-A--Partnerships

106.5 Partnerships

Subdivision 106-B--Bankruptcy and liquidation

106.30 Effect of bankruptcy

106.35 Effect of liquidation

Subdivision 106-C--Absolutely entitled beneficiaries

106.50 Absolutely entitled beneficiaries

Subdivision 106-D--Securities, charges and encumbrances

106.60 Securities, charges and encumbrances

Division 108--CGT assets

108.1 What this Division is about

Subdivision 108-A--What a CGT asset is

108.5 CGT assets

108.7 Interest in CGT assets as joint tenants

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

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

108.50 What this Subdivision is about

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

Division 109--Acquisition of CGT assets

109.1 What this Division is about

Subdivision 109-A--Operative rules

109.5 General acquisition rules

109.10 When you acquire a CGT asset without a CGT event

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

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

Subdivision 110-A--Cost base

110.25 General rules about cost base

110.35 Incidental costs

110.36 Indexation

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

Subdivision 110-B--Reduced cost base

110.55 General rules about reduced cost base

110.60 Reduced cost base for partnership assets

Division 112--Modifications to cost base and reduced cost base

112.1 What this Division is about

112.5 Discussion of modifications

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

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

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

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

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

Division 115--Discount capital gains and trusts' net capital gains

115.1 What this Division is about

Subdivision 115-A--Discount capital gains

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

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

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

115.200 What this Division is about

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

115.275 What this Subdivision is about

115.280 Deduction for certain dividends

115.285 Meaning of LIC capital gain

115.290 Meaning of listed investment company

115.295 Maintaining records

Division 116--Capital proceeds

116.1 What this Division is about

116.5 General rules

116.10 Modifications to general rules

116.20 General rules about capital proceeds

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

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

Division 118--Exemptions

118.1 What this Division is about

Subdivision 118-A--General exemptions

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

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

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

118.80 Reduction of boat capital gain

118.85 Special disability trusts

Subdivision 118-B--Main residence

118.100 What this Subdivision is about

118.105 Map of this Subdivision

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

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

118.165 Separate CGT event for adjacent land or other structures

118.170 Spouse having different main residence

118.175 Dependent child having different main residence

118.178 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

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

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

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

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

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

Subdivision 118-E--Units in pooled superannuation trusts

118.350 Units in pooled superannuation trusts

Subdivision 118-F--Venture capital investment

118.400 What this Subdivision is about

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

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

Subdivision 118-H--Demutualisation of Tower Corporation

118.550 Demutualisation of Tower Corporation

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

Division 121--Record keeping

121.10 What this Division is about

121.20 What records you must keep

121.25 How long you must retain the records

121.30 Exceptions

121.35 Asset register entries

CHAPTER 3--Specialist liability rules

PART 3-3--CAPITAL GAINS AND LOSSES: SPECIAL TOPICS

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

122.5 What this Subdivision is about

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

122.40 Disposal of a CGT asset

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

122.65 Creation of asset

122.70 Consequences for the company (disposal case)

122.75 Consequences for the company (creation case)

Subdivision 122-B--Disposal or creation of assets by partners to a wholly-owned company

122.120 What this Subdivision is about

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

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

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

122.195 Creation of asset

122.200 Consequences for the company (disposal case)

122.205 Consequences for the company (creation case)

Division 124--Replacement-asset roll-overs

124.1 What this Division is about

124.5 How to find your way around this Division

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

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

124.85 Consequences for receiving money

124.90 Consequences for receiving an asset

124.95 You receive both money and an asset

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

Subdivision 124-D--Strata title conversion

124.190 Strata title conversion

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

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

124.510 What this Subdivision is about

124.515 Object of this Subdivision

124.520 Change of incorporation without change of entity

124.525 Old corporation wound up

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

124.570 What this Subdivision is about

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

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

124.700 What this Subdivision is about

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

124.775 What this Subdivision is about

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

124.850 What this Subdivision is about

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

124.975 What this Subdivision is about

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

124.1040 What this Subdivision is about

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

124.1100 What this Subdivision is about

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

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

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

124.1220 What this Subdivision is about

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

Division 125--Demerger relief

125.1 What this Division is about

Subdivision 125-A--Object of this Division

125.5 Object of this Division

Subdivision 125-B--Consequences for owners of interests

125.50 Guide to Subdivision 125 - B

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

125.150 Guide to Subdivision 125 - C

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

125.225 Guide to Subdivision 125 - D

125.230 Application of Division to public trading trusts

Subdivision 125-E--Miscellaneous

125.235 Share and interest sale facilities

Division 126--Same-asset roll-overs

126.1 What this Division is about

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

126.40 What this Subdivision is about

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

126.125 What this Subdivision is about

126.130 Changes to trust deeds

126.135 Consequences of roll - over

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

126.185 What this Subdivision is about

126.190 When there is a roll - over

126.195 Consequences of roll - over

Subdivision 126-G--Transfer of assets between certain trusts

126.215 What this Subdivision is about

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

Division 128--Effect of death

128.1 What this Division is about

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.

128.50 Joint tenants

Division 130--Investments

130.1 What this Division is about

Subdivision 130-A--Bonus shares and units

130.15 Acquisition time and cost base of bonus equities

130.20 Issue of bonus shares or units

Subdivision 130-B--Rights

130.40 Exercise of rights

130.45 Timing rules

130.50 Application to options

Subdivision 130-C--Convertible interests

130.60 Shares or units acquired by converting a convertible interest

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

Subdivision 130-E--Exchangeable interests

130.100 Exchangeable interest

130.105 Shares acquired in exchange for the disposal or redemption of an exchangeable interest

Subdivision 130-F--Exploration investments

130.110 Reducing the reduced cost base before disposal

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

Division 134--Options

134.1 Exercise of options

Division 137--Granny flat arrangements

Subdivision 137-A--When CGT events do not happen --

137.1 What this Subdivision is about

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

Division 149--When an asset stops being a pre-CGT asset

Subdivision 149-A--Key concepts

149.10 What is a pre - CGT asset?

149.15 Majority underlying interests in a CGT asset

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

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

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

Division 152--Small business relief

152.1 What this Division is about

Subdivision 152-A--Basic conditions for relief under this Division

152.5 What this Subdivision is about

152.10 Basic conditions for relief

152.12 Special conditions for CGT event D1

152.15 Maximum net asset value test

152.20 Meaning of net value of the CGT assets

152.35 Active asset test

152.40 Meaning of active asset

152.45 Continuing time periods for involuntary disposals

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

152.50 Significant individual test

152.55 Meaning of significant individual

152.60 Meaning of CGT concession stakeholder

152.65 Small business participation percentage

152.70 Direct small business participation percentage

152.75 Indirect small business participation percentage

152.78 Trustee of discretionary trust may nominate beneficiaries to be controllers of trust

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

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

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

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

152.400 What this Subdivision is about

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

PART 3-5--CORPORATE TAXPAYERS AND CORPORATE DISTRIBUTIONS

Division 160--Corporate loss carry back tax offset for 2020-21, 2021-22 or 2022-23 for businesses with turnover under $5 billion

160.1 What this Division is about

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

Subdivision 160-B--Loss carry back choice

160.15 Loss carry back choice

160.16 Changing a 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

Division 164--Non-share capital accounts for companies

164.1 What this Division is about

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

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

165.5 What this Subdivision is about

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

165.23 What this Subdivision is about

165.25 Summary of this Subdivision

165.30 Flow chart showing the application of 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

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

165.70 How to calculate the company's tax loss for the income year

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

165.93 What this Subdivision is about

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

165.99 What this Subdivision is about

165.102 On a change of ownership, or of control of voting power, unless the company satisfies the business continuity test

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

165.115 What this Subdivision is about

165.115AA Special rules to save compliance costs

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

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

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

165.117 What this Subdivision is about

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

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

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

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

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

Subdivision 165-G--Other special provisions

165.250 Control of companies in liquidation etc.

165.255 Incomplete periods

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

Subdivision 166-AA--The object of this Division

166.3 The object of this Division

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

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

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

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

166.135 What this Subdivision is about

166.145 The ownership tests: substantial continuity of ownership

166.165 Relationship with rules in Division 165

166.175 Corporate change in a company

Subdivision 166-E--Concessional tracing rules

166.215 What this Subdivision is about

166.220 Application of this Subdivision

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

166.240 Stakes held directly and/or indirectly by widely held companies

166.245 Stakes held by other entities

166.255 Bearer shares in foreign listed companies

166.260 Depository entities holding stakes in foreign listed companies

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

166.275 Rules in this Subdivision intended to be concessional

166.280 Controlled test companies

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

167.5 What this Subdivision is about

167.7 Simplified outline of this Subdivision

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

167.75 What this Subdivision is about

167.80 When this Subdivision applies

167.85 Different method for working out voting power

167.90 Dual listed companies

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 --

170.1 What this Subdivision is about

170.5 Basic principles for transferring tax losses

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

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

170.65 Agreement transfers as much as can be transferred

170.70 Amendment of assessments

170.75 Treatment like Australian branches of foreign banks

Subdivision 170-B--Transfer of net capital losses within certain wholly-owned groups of companies

170.101 What this Subdivision is about

170.105 Basic principles for 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

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

170.165 Agreement transfers as much as can be transferred

170.170 Amendment of assessments

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

170.201 What this Subdivision is about

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

170.250 What this Subdivision is about

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

Division 175--Use of a company's tax losses or deductions to avoid income tax

175.1 What this Division is about

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

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

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

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

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

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

Division 180--Information about family trusts with interests in companies

180.1 What this Division is about

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

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

Division 195--Special types of company

Subdivision 195-A--Pooled development funds (PDFs) --

195.1 What this Subdivision is about

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

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

195.37 PDF cannot carry back tax loss

Subdivision 195-B--Limited partnerships

195.60 What this Subdivision is about

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

Subdivision 195-C--Corporate collective investment vehicles

195.100 What this Subdivision is about

195.105 Effect of this Subdivision

195.110 Each sub - fund of a CCIV is taken to be a separate trust

195.115 A CCIV sub - fund trust is a unit trust

195.120 Beneficiary of a CCIV sub - fund trust has fixed entitlements to shares of income and capital of the trust

195.123 How to work out the income of the trust estate of a CCIV sub - fund trust for an income year

195.125 When a beneficiary of a CCIV sub - fund trust is presently entitled to trust income

195.127 When a beneficiary of a CCIV sub - fund trust has an individual interest in exempt income and non - assessable non - exempt income of the trust estate

195.130 Application of Division 275 (managed investment trusts) to a CCIV sub - fund trust

195.135 Application of Division 276 (AMITs) to a CCIV sub - fund trust

195.140 Entry on Australian Business Register

Division 197--Tainted share capital accounts

197.1 What this Division is about

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

Subdivision 197-B--Consequence of transfer: franking debit arises

197.45 A franking debit arises in relation to the transfer

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

CHAPTER 3--Specialist liability rules

PART 3-6--THE IMPUTATION SYSTEM

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

Division 201--Objects and application of Part 3-6

201.1 Objects

201.5 Application of this Part

Division 202--Franking a distribution

Subdivision 202-A--Franking a distribution --

202.1 What this Subdivision is about

202.5 Franking a distribution

Subdivision 202-B--Who can frank a distribution?

202.10 What this Subdivision is about

202.15 Franking entities

202.20 Residency requirement when making a distribution

Subdivision 202-C--Which distributions can be franked?

202.25 What this Subdivision is about

202.30 Frankable distributions

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

202.50 What this Subdivision is about

202.55 What is the maximum franking credit for a frankable distribution?

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

202.70 What this Subdivision is about

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

Division 203--Benchmark rule

203.1 What this Division is about

203.5 Benchmark rule

203.10 Benchmark franking percentage

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

Division 204--Anti-streaming rules

Subdivision 204-A--Objects and application

204.1 Objects

204.5 Application

Subdivision 204-B--Linked distributions

204.10 What this Subdivision is about

204.15 Linked distributions

Subdivision 204-C--Substituting tax-exempt bonus share for franked distributions

204.20 What this Subdivision is about

204.25 Substituting tax - exempt bonus shares for franked distributions

Subdivision 204-D--Streaming distributions

204.26 What this Subdivision is about

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

204.65 What this Subdivision is about

204.70 Application of this Subdivision

204.75 Notice to the Commissioner

204.80 Commissioner may require information where the Commissioner suspects streaming

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

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

Division 207--Effect of receiving a franked distribution

207.5 Overview

Subdivision 207-A--Effect of receiving a franked distribution generally

207.10 What this Subdivision is about

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

207.25 What this Subdivision is about

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

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

207.60 What this Subdivision is about

207.65 Satisfying the residency requirement

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

207.80 What this Subdivision is about

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

207.105 What this Subdivision is about

207.110 Effect of non - assessable income on gross up and tax offset

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

207.140 What this Subdivision is about

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

207.159 Distributions funded by capital raising

207.160 Distribution that is treated as an interest payment

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

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

208.55 What this Subdivision is about

208.60 Franking with an exempting credit

Subdivision 208-C--Amount of the exempting credit on a distribution

208.65 What this Subdivision is about

208.70 Amount of the exempting credit on a distribution

Subdivision 208-D--Distribution statements

208.75 Guide to Subdivision 208 - D

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

208.85 What this Subdivision is about

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

208.105 What this Subdivision is about

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

208.190 What this Subdivision is about

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

208.220 What this Subdivision is about

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

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

210.25 What this Subdivision is about

210.30 Franking a distribution with a venture capital credit

Subdivision 210-B--Participating PDFs

210.35 What this Subdivision is about

210.40 What is a participating PDF

Subdivision 210-C--Distributions that are frankable with a venture capital credit

210.45 What this Subdivision is about

210.50 Which distributions can be franked with a venture capital credit?

Subdivision 210-D--Amount of the venture capital credit on a distribution

210.55 What this Subdivision is about

210.60 Amount of the venture capital credit on a distribution

Subdivision 210-E--Distribution statements

210.65 What this Subdivision is about

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

210.75 What this Subdivision is about

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

210.85 What this Subdivision is about

210.90 The venture capital sub - account

210.95 Venture capital deficit tax

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

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

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

Division 214--Administering the imputation system

214.1 Purpose of the system

214.5 Key features

Subdivision 214-A--Franking returns

214.10 What this Subdivision is about

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

214.55 What this Subdivision is about

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

214.90 What this Subdivision is about

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

214.145 What this Subdivision is about

214.150 Due date for payment of franking tax

214.155 General interest charge

214.160 Refunds of amounts overpaid

Subdivision 214-E--Records

214.170 What this Subdivision is about

214.175 Record keeping

Division 215--Consequences of the debt/equity rules

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

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

Division 216--Cum dividend sales and securities lending arrangements

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

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

Division 218--Application of imputation rules to co-operative companies

218.5 Application of imputation rules to co - operative companies

Division 219--Imputation for life insurance companies

219.1 What this Division is about

Subdivision 219-A--Application of imputation rules to life insurance companies

219.10 Application of imputation rules to life insurance companies

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

Division 220--Imputation for NZ resident companies and related companies

220.1 What this Division is about

Subdivision 220-A--Objects of this Division

220.15 Objects

220.20 What is an NZ resident ?

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

220.100 Residency requirement for franking

220.105 Unfrankable distributions by NZ franking companies

220.110 Maximum franking credit under section 202 - 60

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

220.300 NZ franking company's franking account affected by franking accounts of some of its 100% subsidiaries

220.350 Providing for a franking credit to arise

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

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

220.605 Effect on exempting account if NZ franking choice ceases to be in force

220.700 Tax effect of distribution franked by NZ franking company with an exempting credit

220.800 Joint and several liability for NZ resident company's franking tax etc.

PART 3-10----FINANCIAL TRANSACTIONS

Division 230--Taxation of financial arrangements

230.1 What this Division is about

230.5 Scope of this Division

Subdivision 230-A--Core rules

230.10 Objects of this Division

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

230.40 Methods for taking gain or loss into account

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)

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

230.90 What this Subdivision is about

230.95 Objects of this Subdivision

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

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

230.180 Realisation method

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

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

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

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

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

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

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

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

Subdivision 230-J--Additional operation of Division

230.530 Additional operation of Division

Division 235--Particular financial transactions

235.1 What this Division is about

Subdivision 235-I--Instalment trusts

235.805 What this Subdivision is about

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

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

240.10 Application of this Division

240.15 Scope of Division

Subdivision 240-B--The notional sale and notional loan

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

240.30 What this Subdivision is about

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

240.45 What this Subdivision is about

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

240.60 Notional interest

240.65 Arrangement payments

240.70 Arrangement payment periods

Subdivision 240-F--The end of the arrangement

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

240.100 What this Subdivision is about

240.105 Adjustments for notional seller

240.110 Adjustments for notional buyer

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

240.115 Another person, or no person taken to own property in certain cases

Division 242--Leases of luxury cars

242.1 What this Division is about

Subdivision 242-A--Notional sale and loan

242.5 What this Subdivision is about

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

242.30 What this Subdivision is about

242.35 Amount to be included in lessor's assessable income

242.40 Treatment of lease payments

Subdivision 242-C--Deductions allowable to lessee

242.45 What this Subdivision is about

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

242.60 What this Subdivision is about

242.65 Adjustments for lessor

242.70 Adjustments for lessee

Subdivision 242-E--Extension, renewal and final ending of the lease

242.75 What this Subdivision is about

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

Division 243--Limited recourse debt

243.10 What this Division is about

Subdivision 243-A--Circumstances in which Division operates

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

243.35 Working out the excessive deductions

Subdivision 243-C--Amounts included in assessable income and deductions

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

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

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

245.5 What this Subdivision is about

245.10 Commercial debts

245.15 Non - equity shares

245.20 Parts of debts

Subdivision 245-B--What constitutes forgiveness of a debt

245.30 What this Subdivision is about

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

245.48 What this Subdivision is about

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

245.65 Amount offset against amount of debt

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

245.80 What this Subdivision is about

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

245.95 What this Subdivision is about

245.100 Subdivision not to apply to calculation of attributable income

245.105 How total net forgiven amount is applied

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

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

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

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

245.195 No further consequences if there is any remaining unapplied total net forgiven amount

Subdivision 245-F--Special rules relating to partnerships

245.200 What this Subdivision is about

245.215 Unapplied total net forgiven amount of a partnership is transferred to partners

Subdivision 245-G--Record keeping

245.265 Keeping and retaining records

Division 247--Capital protected borrowings

247.1 What this Division is about

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

Division 250--Assets put to tax preferred use

250.1 What this Division is about

Subdivision 250-A--Objects

250.5 Main objects

Subdivision 250-B--When this Division applies to you and an asset

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

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

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

250.105 Discount rate to be used in working out present values

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

Subdivision 250-C--Denial of, or reduction in, capital allowance deductions

250.145 Denial of capital allowance deductions

250.150 Apportionment rule

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

250.190 What this Subdivision is about

250.195 Application of Subdivision

250.200 Objects of this Subdivision

250.205 Gains are assessable and losses deductible

250.210 Gain or loss to be taken into account only once under this Act

250.215 Methods for taking gain or loss into account

250.220 Consistency in working out gains or losses (integrity measure)

250.225 Rights and obligations include contingent rights and obligations

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

250.265 When balancing adjustment made

250.270 Exception for subsidiary member leaving consolidated group

250.275 Balancing adjustment

250.280 Financial arrangement received or provided as consideration

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

Subdivision 250-G--Objections against determinations and decisions by the Commissioner

250.295 Objections against determinations and decisions by the Commissioner

Division 253--Financial claims scheme for account-holders with insolvent ADIs

Subdivision 253-A--Tax treatment of entitlements under financial claims scheme --

253.1 What this Subdivision is about

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

CHAPTER 3--Specialist liability rules

PART 3-25----PARTICULAR KINDS OF TRUSTS

Division 275--Australian managed investment trusts: general

275.1 What this Division is about

Subdivision 275-A--Meaning of managed investment trust

275.5 What this Subdivision is about

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

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

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

275.600 What this Subdivision is about

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

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?

276.5 What this Subdivision is about

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

276.50 What this Subdivision is about

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

276.75 What this Subdivision is about

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

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

276.115 Custodian interposed between AMIT and member

Subdivision 276-D--Member components

276.200 What this Subdivision is about

276.205 Meaning of determined member component

276.210 Meaning of member component

Subdivision 276-E--Trust components

276.250 What this Subdivision is about

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

276.300 What this Subdivision is about

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

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

276.400 What this Subdivision is about

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

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

276.430 Commissioner may remit tax under this Subdivision

Subdivision 276-H--AMMA statements

276.450 What this Subdivision is about

276.455 Obligation to give an AMMA statement

276.460 AMIT member annual statement (or AMMA statement )

276.500 What this Subdivision is about

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

276.800 What this Subdivision is about

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

PART 3-30----SUPERANNUATION

Division 280--Guide to the superannuation provisions

280.1 Effect of this Division

280.5 Overview

280.10 Contributions phase--deductibility

280.15 Contributions phase--limits on superannuation tax concessions

280.20 Investment 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

280.40 Other relevant legislative schemes

Division 285--General concepts relating to superannuation

285.5 Transfers of property

Division 290--Contributions to superannuation funds

290.1 What this Division is about

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

290.60 Employer contributions deductible

290.65 Application to employees etc.

290.70 Employment activity conditions

290.75 Complying fund conditions

290.80 Age related conditions

290.85 Contributions for former employees etc.

290.90 Controlling interest deductions

290.95 Amounts offset against superannuation guarantee charge

290.100 Returned contributions assessable

Subdivision 290-C--Deducting personal contributions

290.150 Personal contributions deductible

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

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

Division 291--Excess concessional contributions

291.1 What this Division is about

Subdivision 291-A--Object of this Division

291.5 Object of this Division

Subdivision 291-B--Excess concessional contributions

291.10 What this Subdivision is about

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

291.155 What this Subdivision is about

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

291.365 What this Subdivision is about

291.370 Contributions that do not result in excess contributions

Subdivision 291-D--Other provisions

291.460 What this Subdivision is about

291.465 Commissioner's discretion to disregard contributions etc. in relation to a financial year

Division 292--Excess non-concessional contributions

292.1 What this Division is about

Subdivision 292-A--Object of this Division

292.5 Object of this Division

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

Subdivision 292-C--Excess non-concessional contributions tax

292.75 What this Subdivision is about

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

292.225 What this Subdivision is about

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

292.300 What this Subdivision is about

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

292.380 What this Subdivision is about

292.385 Due date for payment of excess non - concessional contributions tax

292.390 General interest charge

292.395 Refunds of amounts overpaid

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

Division 293--Sustaining the superannuation contribution concession

293.1 What this Division is about

Subdivision 293-A--Object of this Division

293.5 Object of this Division

Subdivision 293-B--Sustaining the superannuation contribution concession

293.10 What this Subdivision is about

293.15 Liability for tax

293.20 Your taxable contributions

293.25 Your low tax contributions

293.30 Low tax contributed amounts

Subdivision 293-C--When tax is payable

293.60 What this Subdivision is about

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

293.100 What this Subdivision is about

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

293.140 What this Subdivision is about

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

293.185 What this Subdivision is about

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

293.225 What this Subdivision is about

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

Division 294--Transfer balance cap

294.1 What this Division is about

Subdivision 294-A--Object of this Division

294.5 Object of this Division

Subdivision 294-B--Transfer balance account

294.10 What this Subdivision is about

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

294.75 What this Subdivision is about

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

294.120 What this Subdivision is about

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

294.170 What this Subdivision is about

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

294.225 What this Subdivision is about

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

Division 295--Taxation of superannuation entities

295.1 What this Division is about

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

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

295.155 What this Subdivision is about

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

295.190 Personal contributions and roll - over amounts

295.195 Exclusion of personal contributions--contributions

295.197 Exclusion of personal contributions--successor funds

295.200 Transfers from foreign superannuation funds

295.205 Application of tables to RSA providers

295.210 Former constitutionally protected funds

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

295.320 Other amounts included in assessable income

295.325 Previously complying funds

295.330 Previously foreign funds

295.335 Amounts excluded from assessable income

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

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

295.490 Other deductions

295.495 Amounts that cannot be deducted

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

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

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

Division 301--Superannuation member benefits paid from complying plans etc.

301.1 What this Division is about

Subdivision 301-A--Application

301.5 Division applies to superannuation member benefits paid from complying plans etc.

Subdivision 301-B--Member benefits: general rules

Member

301.10 All superannuation benefits are tax free

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

Member

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

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

Member

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

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

Member

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

301.125 Unclaimed money payments by the Commissioner

Subdivision 301-D--Departing Australia superannuation payments

301.170 Departing Australia superannuation payments

301.175 Treatment of departing Australia superannuation benefits

Subdivision 301-E--Superannuation lump sum member benefits less than $200

301.225 Superannuation lump sum member benefits less than $200 are tax free

Subdivision 301-F--Veterans' superannuation (invalidity pension) tax offset

301.275 Veterans' superannuation (invalidity pension) tax offset

Division 302--Superannuation death benefits paid from complying plans etc.

302.1 What this Division is about

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

302.60 All of superannuation lump sum is tax free

Superannuation income stream

302.65 Superannuation income stream benefits are tax free

Superannuation income stream

under

302.70 Superannuation income stream--tax free status of tax free component

302.75 Superannuation income stream--taxable component attracts 15% offset

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

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%

Subdivision 302-D--Definitions relating to dependants

302.195 Meaning of death benefits dependant

302.200 What is an interdependency relationship ?

Division 303--Superannuation benefits paid in special circumstances

303.1 What this Division is about

Subdivision 303-A--Modifications for defined benefit income

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

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

Division 304--Superannuation benefits in breach of legislative requirements etc.

304.1 What this Division is about

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

Division 305--Superannuation benefits paid from non-complying superannuation plans

305.1 What this Division is about

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

305.55 Restriction to lump sums received from certain foreign superannuation funds

305.60 Lump sums tax free--foreign resident period

305.65 Lump sums tax free--Australian resident period

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

Division 306--Roll-overs etc.

306.1 What this Division is about

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

Division 307--Key concepts relating to superannuation benefits

307.1 What this Division is about

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

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

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

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

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

Subdivision 307-F--Low rate cap and untaxed plan cap amounts

307.345 Low rate cap amount

307.350 Untaxed plan cap amount

Subdivision 307-G--Other concepts

307.400 Meaning of service period for a superannuation lump sum

Division 310--Loss relief for merging superannuation funds

310.1 What this Division is about

Subdivision 310-A--Object of this Division

310.5 Object

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

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

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

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

Subdivision 310-F--Choices

310.85 Choices

Division 312--Trans-Tasman portability of retirement savings

312.1 What this Division is about

Subdivision 312-A--Preliminary

312.5 Division implements Arrangement with New Zealand

Subdivision 312-B--Amounts contributed to complying superannuation funds from KiwiSaver schemes

312.10 Amounts contributed to complying superannuation funds from KiwiSaver schemes

Subdivision 312-C--Superannuation benefits paid to KiwiSaver scheme providers

312.15 Superannuation benefits paid from complying superannuation funds to KiwiSaver schemes

312.20 Superannuation benefits paid by Commissioner to KiwiSaver schemes

Division 313--First home super saver scheme

313.1 What this Division is about

Subdivision 313-A--Preliminary

313.5 Object of this Division

313.10 Application of this Division

Subdivision 313-B--Assessable income and tax offset

313.15 What this Subdivision is about

313.20 Amount included in assessable income

313.25 Amount of the tax offset

Subdivision 313-C--Purchasing or constructing a residential premises

313.30 What this Subdivision is about

313.35 Purchasing or constructing a residential premises

313.40 Notifying Commissioner

Subdivision 313-D--Contributing amounts to superannuation

313.45 What this Subdivision is about

313.50 Contributing amounts to superannuation

Subdivision 313-E--First home super saver tax

313.55 What this Subdivision is about

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

313.80 What this Subdivision is about

313.85 Review rights for decisions made under this Division

CHAPTER 3--Specialist liability rules

PART 3-32----CO-OPERATIVES AND MUTUAL ENTITIES

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

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

315.25 Demutualising health insurers to disregard capital gains and losses related to demutualisation

315.30 Other entities to disregard capital gains and losses related to demutualisation

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

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

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

Subdivision 315-E--Special CGT rule for legal personal representatives and beneficiaries

315.260 Special CGT rule for legal personal representatives and beneficiaries

Subdivision 315-F--Non-CGT consequences of demutualisation

315.310 General taxation consequences of issue of demutualisation assets etc.

Division 316--Demutualisation of friendly society health or life insurers

316.1 What this Division is about

Subdivision 316-A--Application

316.5 Application of this Division

Subdivision 316-B--Capital gains and losses connected with the demutualisation

316.50 What this Subdivision is about

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

316.75 Disregarding friendly society's capital 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

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

316.150 What this Subdivision is about

316.155 Lost policy holders 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

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

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

PART 3-35----INSURANCE BUSINESS

Division 320--Life insurance companies

320.1 What this Division is about

Subdivision 320-A--Preliminary

320.5 Object of Division

Subdivision 320-B--What is included in a life insurance company's assessable income

320.10 What this Subdivision is about

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

320.50 What this Subdivision is about

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

320.130 What this Subdivision is about

320.131 Overview of Subdivision

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

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

320.150 What this Subdivision is about

320.155 Subdivisions 295 - I and 295 - J apply to companies that are RSA providers

Subdivision 320-F--Complying superannuation asset pool

320.165 What this Subdivision is about

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

320.220 What this Subdivision is about

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

320.300 What this Subdivision is about

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

Division 321--General insurance companies and companies that self-insure in respect of workers' compensation liabilities

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

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

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

Division 322--Assistance for policyholders with insolvent general insurers

322.1 What this Division is about

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

322.20 What this Subdivision is about

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

PART 3-45----RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS

Division 328--Small business entities

328.5 What this Division is about

328.10 Concessions available to small business entities

Subdivision 328-B--Objects of this Division

328.50 Objects of this Division

Subdivision 328-C--What is a small business entity

328.105 What this Subdivision is about

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

328.170 What this Subdivision is about

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

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

328.280 What this Subdivision is about

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

328.350 What this Subdivision is about

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

328.420 What this Subdivision is about

328.425 Object of 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

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

Division 355--Research and Development

355.1 What this Division is about

Subdivision 355-A--Object

355.5 Object

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

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

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

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

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

355.430 What this Subdivision is about

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

355.455 What this Subdivision is about

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

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

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

Subdivision 355-K--Application to Cooperative Research Centres

355.580 When notional deductions for CRC contributions arise

Subdivision 355-W--Other matters

355.705 Effect of findings by Industry Innovation and Science Australia

355.710 Amendment of assessments

355.715 Implications for other deductions and tax offsets

Division 360--Early stage investors in innovation companies

Subdivision 360-A--Tax incentives for early stage investors in innovation companies --

360.5 What this Subdivision is about

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

Division 376--Films generally (tax offsets for Australian production expenditure)

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

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

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

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

Production expenditure

rules

376.125 Production expenditure--general test

376.130 Production expenditure--special qualifying Australian production expenditure

376.135 Production expenditure--specific exclusions

Production expenditure

376.140 Production expenditure--special rules for the location offset

Qualifying Australian production expenditure

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

Qualifying Australian production expenditure

376.165 Qualifying Australian production expenditure--special rules for the location offset and the PDV offset

Qualifying Australian production expenditure

376.170 Qualifying Australian production expenditure--special rules for the producer offset

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

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

Division 378--Digital games (tax offset for Australian expenditure on digital games)

378.1 What this Division is about

Subdivision 378-A--Tax offset for Australian expenditure in developing digital games

378.10 Company entitled to refundable tax offset for Australian expenditure incurred in developing digital games

378.15 Amount of digital games tax offset

378.20 Meaning of digital game

378.25 Arts Minister must issue certificate for the digital games tax offset

378.30 Arts Minister to determine a company's qualifying Australian development expenditure for the digital games tax offset

Subdivision 378-B--Qualifying Australian development expenditure

378.35 Development expenditure

378.40 Qualifying Australian development expenditure

378.45 Expenditure incurred by prior companies in completing or porting a digital game

378.50 Expenditure to be worked out excluding GST

Subdivision 378-C--Certificates for digital games tax offset

378.55 Single company or head company may apply for certificate

378.60 Notice of refusal to issue certificate

378.65 Issue of certificate

378.70 Revocation of certificate

378.75 Amendment of certificate

378.80 Amendment of assessments

Subdivision 378-D--Review and other matters

378.85 Notice of decision or determination

378.90 Review of decisions by the Administrative Appeals Tribunal

378.95 Copy of digital game to be made available to the National Film and Sound Archive of Australia

378.100 Arts Minister may make rules about the digital games tax offset

378.105 Arts Minister may make rules establishing a Digital Games Tax Offset Advisory Board

378.110 Delegation by Arts Minister

378.115 Review of operation of this Division

Division 380--National Rental Affordability Scheme

380.1 What this Division is about

Subdivision 380-A--National Rental Affordability Scheme Tax Offset

380.5 Claims by individuals, corporate tax entities and superannuation funds

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

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

380.32 Amended certificates

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

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

385.90 What this Subdivision is about

385.95 Basic principles for elections under this Subdivision

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

Subdivision 385-F--Insurance for loss of live stock or trees

385.130 Insurance for loss of live stock or trees

Subdivision 385-G--Double wool clips

385.135 Election to defer including profit on second wool clip

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

Division 392--Long-term averaging of primary producers' tax liability

392.1 What this Division is about

392.5 Overview of averaging process

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?

392.30 What this Subdivision is about

392.35 Will you get a tax offset or have to pay extra income tax?

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?

392.60 What this Subdivision is about

392.65 What your averaging adjustment reflects

392.70 Working out your gross averaging amount

392.75 Working out your averaging adjustment

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

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

Division 393--Farm management deposits

393.1 What this Division is about

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

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

393.50 What this Subdivision is about

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

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

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

Subdivision 405-A--Above-average special professional income

405.15 When do you have above - average special professional income?

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

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

Division 410--Copyright and resale royalty collecting societies

410.1 What this Division is about

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

Division 415--Designated infrastructure projects

415.1 What this Division is about

Subdivision 415-A--Object of this Division

415.5 Object of this Division

Subdivision 415-B--Tax losses and bad debts

415.10 What this Subdivision is about

415.15 Uplift of tax losses of designated infrastructure project entities

415.20 Designated infrastructure project entity

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

415.45 Losses transferred to head companies of consolidated groups

Subdivision 415-C--Designating infrastructure projects

415.50 What this Subdivision is about

415.55 Applications for designation

415.60 Dealing with applications

415.65 Provisional designation

415.70 Designation

415.75 Infrastructure project capital expenditure cap

415.80 Acceptance of estimates of infrastructure project capital expenditure

415.85 Review of decisions

415.90 Information to be made public

415.95 Delegation

415.100 Infrastructure project designation rules

Division 417--Timor Sea petroleum

417.1 What this Division is about

Subdivision 417-A--Introduction

417.5 Object

417.10 Meaning of transitioned petroleum activities

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

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

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

Subdivision 417-E--Foreign income tax offset

417.125 Foreign income tax offset

Subdivision 417-F--Transfer pricing

417.140 Transfer pricing benefits relating to transitioned petroleum activities

Division 418--Exploration for minerals

418.1 What this Division is about

Subdivision 418-A--Object of this Division

418.5 Object of this Division

Subdivision 418-B--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

418.25 The amount of the tax offset

418.30 Reduced amount of the tax offset for certain trusts

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

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

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

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

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

Subdivision 418-G--Other matters

418.190 Annual impact assessments of this Division

PART 3-50----CLIMATE CHANGE

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

Subdivision 420-A--Registered emissions units

420.10 Meaning of registered emissions unit

420.12 Meaning of hold a registered emissions unit

420.13 Meaning of primary producer registered emissions unit

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

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

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

420.62 Primary producer registered emissions units

Subdivision 420-E--Exclusivity of Division

420.65 Exclusivity of deductions etc.

420.70 Exclusivity of assessable income etc.

CHAPTER 3--Specialist liability rules

PART 3-80----ROLL-OVERS APPLYING TO ASSETS GENERALLY

Division 615--Roll-overs for business restructures

615.1 What this Division is about

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

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

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

Subdivision 615-D--Consequences for the interposed company

615.65 Consequences for the interposed company

Division 620--Assets of wound-up corporation passing to corporation with not significantly different ownership

Subdivision 620-A--Corporations covered by Subdivision 124-I --

620.5 What this Subdivision is about

620.10 Application

620.15 Object

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

620.30 Roll - over relief for balancing adjustment events

620.40 Body taken to have sold trading stock to company

620.50 Body taken to have sold revenue assets to company

PART 3-90----CONSOLIDATED GROUPS

Division 700--Guide and objects

700.1 What this Part is about

700.5 Overview of this Part

700.10 Objects of this Part

Division 701--Core rules

701.1 Single entity rule

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

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

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.

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

Division 703--Consolidated groups and their members

703.1 What this Division is about

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

703.50 Choice to consolidate a consolidatable group

703.55 Creating consolidated groups from certain MEC groups

703.58 Notice of choice to consolidate

703.60 Notice of events affecting consolidated group

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

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

705.5 What this Subdivision is about

705.10 Application and object of this Subdivision

705.15 Cases where this Subdivision does not have effect

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 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

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

705.125 Pre - CGT proportion for joining entity

Subdivision 705-B--Case of group formation

705.130 What this Subdivision is about

705.135 Application and object of this Subdivision

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

705.170 What this Subdivision is about

705.175 Application and object of this Subdivision

705.180 Modifications of Division 701

705.185 Subdivision 705 - A has effect with modifications

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

705.210 What this Subdivision is about

705.215 Application and object of this Subdivision

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.

705.300 What this Subdivision is about

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

Division 707--Losses for head companies when entities become members etc.

Subdivision 707-A--Transfer of losses to head company --

707.100 What this Subdivision is about

707.105 Who can utilise the loss?

707.110 Objects of this Subdivision

707.115 What losses this Subdivision applies to

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

707.140 Effect of transfer of loss

707.145 Cancelling the transfer of the loss

707.150 Loss cannot be utilised for income year ending after the joining time

Subdivision 707-B--Can a transferred loss be utilised?

707.200 What this Subdivision is about

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

707.300 What this Subdivision is about

707.305 Object of this Subdivision

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

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

Division 709--Other rules applying when entities become subsidiary members etc.

Subdivision 709-A--Franking accounts --

709.50 What this Subdivision is about

709.55 Object of this Subdivision

709.60 Nil balance franking account for joining entity

709.65 Subsidiary member's franking account does not operate

709.70 Credits arising in head company's franking account

709.75 Debits arising in head company's franking account

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

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

709.150 What this Subdivision is about

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

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

709.200 What this Subdivision is about

709.205 Application of this Subdivision

709.210 Object of this Subdivision

709.215 Limit on deduction of bad debt

709.220 Limit on deduction of swap loss

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

711.5 Application and object of this Division

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

Division 713--Rules for particular kinds of entities

Subdivision 713-A--Trusts --

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

713.50 Factors to consider

Subdivision 713-C--Some unit trusts treated like head companies of consolidated groups

713.120 What this Subdivision is about

713.125 Object of this Subdivision

713.130 Choosing to form a consolidated group

713.135 Effects of choice

713.140 Modifications of the applied law

Subdivision 713-E--Partnerships

713.200 What this Subdivision is about

713.205 Objects of this Subdivision

713.210 Partnership cost setting interests

713.215 Terminating value for partnership cost setting interest

713.220 Set tax cost of partnership cost setting interests if partner joins consolidated group

713.225 Tax cost setting amount for partnership cost setting interest

713.235 Partnership joins group--set tax cost of partnership assets

713.240 Partnership joins group--tax cost setting amount for partnership asset

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

713.500 What this Subdivision is about

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

713.511 Treatment of certain liabilities for income year when life insurance company joins 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

713.530 Treatment of certain losses of life insurance company

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

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

713.565 Treatment of certain liabilities for income year when life insurance company leaves consolidated group

713.570 Certain losses transferred to leaving company

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

713.700 What this Subdivision is about

713.705 Certain assets taken to be retained cost base assets where general insurance company joins group

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

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 --

715.15 Object of this Subdivision

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

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

715.60 Assets that the head company already owns

715.70 Assets of subsidiary member that become those of head company

715.75 Extension of single entity rule and entry history rule

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

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

715.145 Effect of choice on adjustable value of leaving asset

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

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

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

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

715.270 Subdivision 165 - CD applies

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

715.310 What is a 170 - D deferred loss , and when it revives

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

Subdivision 715-E--Interactions with Division 775 (Foreign currency gains and losses)

715.370 Cost setting--reference time for determining currency exchange rate effect

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

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

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

715.660 Head company's choice overriding entry history rule

715.665 Head company's choice to override inconsistency

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

715.700 Choices leaving entity can make ignoring exit history rule

715.705 Choices leaving entity can make ignoring exit history rule to overcome inconsistencies

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

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

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

Division 716--Miscellaneous special rules

Subdivision 716-A--Assessable income and deductions spread over several membership or non-membership periods --

716.1 What this Division is about

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

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

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

716.330 Head company's deductions for decline in value of assets in joining entity's low - value pool

716.335 Entity leaving group with asset allocated to head company's low - value pool

716.340 Depreciating assets arising from expenditure in joining entity's software development pool

716.345 Head company taken not to have incurred expenditure

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

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

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

Division 717--International tax rules

Subdivision 717-A--Foreign income tax offsets

717.1 What this Subdivision is about

717.5 Object of this Subdivision

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

717.200 What this Subdivision is about

717.205 Object of this Subdivision

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

717.235 What this Subdivision is about

717.240 Object of this Subdivision

717.245 Attribution surpluses

717.255 FIF surpluses

717.262 Deferred attribution credits

Subdivision 717-O--Offshore banking units

717.700 What this Subdivision is about

717.705 Object of this Subdivision

717.710 Head company treated as OBU

Division 719--MEC groups

Subdivision 719-A--Modified application of Part 3-90 to MEC groups

719.2 Modified application of Part 3 - 90 to MEC groups

Subdivision 719-B--MEC groups and their members

719.4 What this Subdivision is about

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

719.50 Eligible tier - 1 companies may choose to consolidate a potential MEC group

719.55 When choice starts to have effect

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

719.75 Head company

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

719.85 Application

719.90 New head company treated as substituted for old head company at all times before the transition time

719.95 No consequences of old head company becoming, and new head company ceasing to be, subsidiary member of the group

Subdivision 719-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

719.150 What this Subdivision is about

719.155 Object of this Subdivision

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

719.250 What this Subdivision is about

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

719.285 Business continuity test and change of head company

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

Subdivision 719-H--Imputation issues

719.425 Guide to Subdivision 719 - H

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

719.450 What this Subdivision is about

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

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

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

719.700 Changeover times under section 165 - 115C or 165 - 115D

719.705 Additional changeover times for head company of MEC group

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

719.755 Effect on MEC group cost setting rules if head company is losing entity or gaining entity for indirect value shift

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

Division 721--Liability for payment of tax where head company fails to pay on time

721.1 What this Division is about

721.5 Object of this Division

721.10 When this Division operates

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

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

CHAPTER 3--Specialist liability rules

PART 3-95----VALUE SHIFTING

Division 723--Direct value shifting by creating right over non-depreciating asset

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

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

Division 725--Direct value shifting affecting interests in companies and trusts

725.1 What this Division is about

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

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

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

725.220 Neutral direct value shifts

725.225 Issue of bonus shares or units

725.230 Off - market buy - backs

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

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

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)

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

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.

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

727.200 What this Subdivision is about

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

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

727.250 Distribution by an entity to a member or beneficiary

727.260 Shift down a wholly - owned chain of entities

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

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

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

727.450 What this Subdivision is about

727.455 Consequences of the indirect value shift

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

727.530 Who are the affected owners

727.550 Choosing the adjustable value method

727.555 Giving other affected owners information about the choice

Subdivision 727-G--The realisation time method

727.600 What this Subdivision is about

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

727.700 When 95% services indirect value shift is 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

727.750 What this Subdivision is about

727.755 Consequences of indirect value shift

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

727.800 Uplift under the attributable increase method

727.805 Has there been a disaggregated attributable increase?

727.810 Scaling - down formula

727.830 CGT assets

727.835 Trading stock

727.840 Revenue assets

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

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

CHAPTER 4--International aspects of income tax

PART 4-5--GENERAL

Division 764--Source rules

764.1 What this Division is about

Subdivision 764-A--Source rules

764.5 Source rule for international tax agreements

Division 768--Foreign non-assessable income and gains

Subdivision 768-A--Returns on foreign investment --

768.1 What this Subdivision is about

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

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

768.500 What this Subdivision is about

768.505 Reducing a capital gain or loss from certain CGT events in relation to certain voting interests

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

768.540 Active foreign business assets of a foreign company

768.545 Assets included in the total assets of a foreign 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

768.900 What this Subdivision is about

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

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

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

770.65 What this Subdivision is about

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

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

770.140 When foreign income tax is considered not paid--anti - avoidance rule

Subdivision 770-D--Administration

770.190 Amendment of assessments

Division 775--Foreign currency gains and losses

775.5 What this Division is about

Subdivision 775-A--Objects of this Division

775.10 Objects of this Division

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

775.180 What this Subdivision is about

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

775.225 What this Subdivision is about

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

775.265 What this Subdivision is about

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

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

Division 802--Foreign residents' income with an underlying foreign source

Subdivision 802-A--Conduit foreign income --

802.5 What this Subdivision is about

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

Division 815--Cross-border transfer pricing

Subdivision 815-A--Treaty-equivalent cross-border transfer pricing rules --

815.1 What this Subdivision is about

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

815.101 What this Subdivision is about

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

815.201 What this Subdivision is about

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

815.301 What this Subdivision is about

815.305 Special rule for trusts

815.310 Special rules for partnerships

Subdivision 815-E--Reporting obligations for country by country reporting entities

815.350 What this Subdivision is about

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 )

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

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)

820.65 What this Subdivision is about

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)

820.180 What this Subdivision is about

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)

820.295 What this Subdivision is about

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)

820.390 What this Subdivision is about

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

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

820.579 What this Subdivision is about

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

820.595 What this Subdivision is about

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

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

820.625 What this Subdivision is about

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

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

820.740 What this Subdivision is about

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?

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?

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

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

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

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

820.925 What this Subdivision is about

820.930 Equity interest in a trust or partnership

Subdivision 820-JA--Worldwide debt and equity concepts

820.931 What this Subdivision is about

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

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

820.945 What this Subdivision is about

820.946 Cost - free debt capital and excluded equity interest

Subdivision 820-L--Record keeping requirements

820.950 What this Subdivision is about

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

820.980 Records about arm's length debt amount and arm's length capital amount

820.990 Offences--treatment of partnerships

820.995 Offences--treatment of unincorporated companies

Division 830--Foreign hybrids

830.1 What this Division is about

Subdivision 830-A--Meaning of "foreign hybrid"

830.5 Foreign hybrid

830.10 Foreign hybrid limited partnership

830.15 Foreign hybrid company

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

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

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

Division 832--Hybrid mismatch rules

832.1 What this Division is about

Subdivision 832-A--Preliminary

832.5 What this Subdivision is about

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

832.100 What this Subdivision is about

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

832.175 What this Subdivision is about

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

832.280 What this Subdivision is about

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

832.375 What this Subdivision is about

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

832.450 What this Subdivision is about

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

832.525 What this Subdivision is about

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

832.605 What this Subdivision is about

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

832.675 What this Subdivision is about

832.680 Dual inclusion income, and when an entity is eligible to apply it

Subdivision 832-J--Integrity rule

832.720 What this Subdivision is about

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)

832.775 What this Subdivision is about

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

Division 840--Withholding taxes

840.1 What this Division is about

Subdivision 840-M--Managed investment trust withholding tax

840.800 What this Subdivision is about

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--Labour mobility program withholding tax

840.900 What this Subdivision is about

840.905 Liability for labour mobility program withholding tax

840.906 C overed labour mobility programs

840.910 When labour mobility program withholding tax is payable

840.915 Certain income is non - assessable non - exempt income

840.920 Overpayment of labour mobility program withholding tax

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 --

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

842.200 What this Subdivision is about

842.205 Object of this Subdivision

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

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

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

Division 855--Capital gains and foreign residents

855.1 What this Division is about

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

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

Division 880--Sovereign entities and activities

Subdivision 880-A--Basic concepts --

880.10 What this Subdivision is about

880.15 Meaning of sovereign entity

880.20 Meaning of sovereign entity group

Subdivision 880-B--Basic tax treatment of sovereign entities

880.50 What this Subdivision is about

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

880.100 What this Subdivision is about

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

880.200 What this Subdivision is about

880.205 Income from consular functions--non - assessable non - exempt income

CHAPTER 5--Administration

PART 5-30----RECORD-KEEPING AND OTHER OBLIGATIONS

Division 900--Substantiation rules

900.1 What this Division is about

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

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

Subdivision 900-C--Substantiating car expenses

900.70 Getting written evidence

900.75 Retaining the written evidence and odometer records

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

900.100 What this Subdivision is about

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

900.140 What this Subdivision is about

900.145 Purpose of a travel record

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

900.160 What this Subdivision is about

900.165 The retention period

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

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

900.210 What this Subdivision is about

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

PART 5-35----MISCELLANEOUS

Division 905--Offences

905.5 Application of the Criminal Code

Division 909--Regulations

909.1 Regulations

CHAPTER 6--The Dictionary

PART 6-1--CONCEPTS AND TOPICS

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

Division 960--General

Subdivision 960-B--Utilisation of tax attributes

960.20 Utilisation

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

960.56 What this Subdivision is about

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

Subdivision 960-E--Entities

960.100 Entities

960.105 Certain entities treated as agents

Subdivision 960-F--Distribution by corporate tax entities

960.115 Meaning of corporate tax entity

960.120 Meaning of distribution

Subdivision 960-G--Membership of entities

960.130 Members of entities

960.135 Membership interest in an entity

960.140 Ordinary membership interest

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

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

960.250 What this Subdivision is about

960.252 Object of this Subdivision

960.255 Family relationships

Subdivision 960-M--Indexation

960.260 What this Subdivision is about

960.265 The provisions for which indexation is relevant

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

960.400 What this Subdivision is about

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

960.500 What this Subdivision is about

960.505 Meaning of Australia

Subdivision 960-U--Significant global entities

960.550 What this Subdivision is about

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

Division 961--Notional tax offsets

Subdivision 961-A--Dependant (non-student child under 21 or student) notional tax offset --

961.1 What this Subdivision is about

961.5 Who is entitled to 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

961.50 What this Subdivision is about

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

Division 974--Debt and equity interests

Subdivision 974-A--General --

974.1 What this Division is about

974.5 Overview of Division

974.10 Object

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

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

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

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

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

Division 975--Concepts about companies

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

Subdivision 975-G--What is a company's share capital account?

975.300 Meaning of share capital account

Subdivision 975-W--Wholly-owned groups of companies

975.500 Wholly - owned groups

975.505 What is a 100% subsidiary?

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

Division 977--Realisation events, and the gains and losses they realise for income tax purposes

977.5 Realisation event

977.10 Loss realised for income tax purposes

977.15 Gain realised for income tax purposes

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

977.50 Meaning of revenue asset

977.55 Loss or gain realised for income tax purposes

Division 980--Affordable housing

980.1 What this Division is about

Subdivision 980-A--Providing affordable housing

980.5 Providing affordable housing

980.10 Eligible community housing providers

980.15 Affordable housing certificates

PART 6-5--DICTIONARY DEFINITIONS

Division 995--Definitions

995.1 Definitions

All Databases

Cases & Legislation

Journals & Scholarship

Law Reform

Treaties

Libraries

Communities

LawCite

Australia

CTH

ACT

NSW

NT

QLD

SA

TAS

VIC

WA

New Zealand

Specific Year

Any

Any

INCOME TAX ASSESSMENT ACT 1997

Table of Provisions

CHAPTER 1--Introduction and core provisions

PART 1-1--PRELIMINARY

Division 1--Preliminary

PART 1-2--A GUIDE TO THIS ACT

Division 2--How to use this Act

Division 3--What this Act is about

PART 1-3--CORE PROVISIONS

Division 4--How to work out the income tax payable on your taxable income

Division 5--How to work out when to pay your income tax

Division 6--Assessable income and exempt income

Division 8--Deductions

PART 1-4--CHECKLISTS OF WHAT IS COVERED BY CONCEPTS USED IN THE CORE PROVISIONS

Division 9--Entities that must pay income tax

Division 10--Particular kinds of assessable income

Division 11--Particular kinds of non-assessable income

Division 12--Particular kinds of deductions

Division 13--Tax offsets

CHAPTER 2--Liability rules of general application

PART 2-1--ASSESSABLE INCOME

Division 15--Some items of assessable income

Division 17--Effect of GST etc. on assessable income

Division 20--Amounts included to reverse the effect of past deductions

PART 2-5--RULES ABOUT DEDUCTIBILITY OF PARTICULAR KINDS OF AMOUNTS

Division 25--Some amounts you can deduct

Division 26--Some amounts you cannot deduct, or cannot deduct in full

Division 27--Effect of input tax credits etc. on deductions

Division 28--Car expenses

Division 30--Gifts or contributions

Division 31--Conservation covenants

Division 32--Entertainment expenses

Division 34--Non-compulsory uniforms

Division 35--Deferral of losses from non-commercial business activities

Division 36--Tax losses of earlier income years

CHAPTER 2--Liability rules of general application

PART 2-10----CAPITAL ALLOWANCES: RULES ABOUT DEDUCTIBILITY OF CAPITAL EXPENDITURE

Division 40--Capital allowances

Division 41--Additional deduction for certain new business investment

Division 43--Deductions for capital works

Division 45--Disposal of leases and leased plant

PART 2-15----NON-ASSESSABLE INCOME

Division 50--Exempt entities

Division 51--Exempt amounts

Division 52--Certain pensions, benefits and allowances are exempt from income tax

Division 53--Various exempt payments

Division 54--Exemption for certain payments made under structured settlements and structured orders

Division 55--Payments that are not exempt from income tax

Division 58--Capital allowances for depreciating assets previously owned by an exempt entity

Division 59--Particular amounts of non-assessable non-exempt income

PART 2-20----TAX OFFSETS

Division 61--Generally applicable tax offsets

Division 63--Common rules for tax offsets

Division 65--Tax offset carry forward rules

Division 67--Refundable tax offset rules

CHAPTER 2--Liability rules of general application

PART 2-25----TRADING STOCK

Division 70--Trading stock