Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1936 - SECT 159GZZZZG

Basic case

             (1)  If:

                     (a)  if subsections 159GZZZZE(1) and (2) did not apply to IB amounts, the assessable income of a year of income of a taxpayer who is:

                              (i)  a company or a natural person (other than a company or natural person in the capacity of a trustee); or

                             (ii)  a corporate unit trust within the meaning of Division 6B in relation to the year of income; or

                            (iii)  a public trading trust within the meaning of Division 6C in relation to the year of income; or

                            (iv)  a complying superannuation fund, a non‑complying superannuation fund, a complying approved deposit fund, a non‑complying approved deposit fund or a pooled superannuation trust in relation to the year of income;

                            would include one or more IB amounts; and

                     (b)  the taxpayer's return of income of the year of income includes all of the IB amounts;

then:

                     (c)  all of the IB amounts are included in the taxpayer's assessable income of the year of income; and

                     (d)  the taxpayer is entitled to a rebate in the taxpayer's assessment for that year of an amount equal to 30% of the IB amounts.

Beneficiary assessment

             (2)  If:

                     (a)  apart from this subsection, a share of the net income of a trust estate of a year of income is included in a taxpayer's assessable income under section 97; and

                     (b)  if subsections 159GZZZZE(1) and (2) did not apply to IB amounts included in the assessable income of the trust estate, or of any other trust estate or partnership, that share of the net income would be increased by an amount (the IB attributable amount ); and

                     (c)  the taxpayer's return of income of the year of income is prepared on the basis that all of the IB amounts are included in the assessable income of the trust estate, or of the other trust estate or partnership;

then:

                     (d)  for the purposes only of working out the share of the net income to be included in the taxpayer's assessable income, the assessable income of the trust estate, or of the other trust estate or partnership, includes all of the IB amounts; and

                     (e)  the taxpayer is entitled to a rebate in the taxpayer's assessment for the year of income of an amount equal to 30% of the IB attributable amount.

Trustee assessment

             (3)  If:

                     (a)  apart from this subsection, the trustee of a trust estate is assessed and liable to pay tax:

                              (i)  in respect of a share of the net income of the trust estate of a year of income under section 98; or

                             (ii)  in respect of the whole or part of the net income of the trust estate under section 99 or 99A; and

                     (b)  if subsections 159GZZZZE(1) and (2) did not apply to IB amounts included in the assessable income of the trust estate, or of any other trust estate or partnership, of the year of income, the amount of the share, or of the whole or the part, of the net income would be increased by an amount (the IB attributable amount ); and

                     (c)  the trustee's return of income in respect of the share, or the whole or the part of the net income, of the year of income is prepared on the basis that all of the IB amounts are included in the assessable income of the trust estate, or of the other trust estate or partnership;

then:

                     (d)  for the purposes only of working out the amount of:

                              (i)  the share, or of the whole or the part, of the net income; and

                             (ii)  the individual interest of a beneficiary in the net income of the trust estate that is to be included in the beneficiary's assessable income under section 100, where the share of the net income to which subparagraph (a)(i) of this subsection applies is that of the beneficiary;

                            the assessable income of the trust estate, or of the other trust estate or partnership, includes all of the IB amounts; and

                     (e)  the trustee is entitled to a rebate in the trustee's assessment in respect of the share, or of the whole or the part, of the net income of the year of income to an amount equal to 30% of the IB attributable amount.

Partner assessment

             (4)  If:

                     (a)  apart from this subsection, a share of the net income of a partnership of a year of income is included in a taxpayer's assessable income under section 92; and

                     (b)  if subsections 159GZZZZE(1) and (2) did not apply to IB amounts included in the assessable income of the partnership, or of any other partnership or trust estate, that share of the net income would be increased by an amount (the IB attributable amount ); and

                     (c)  the taxpayer's return of income of the year of income is prepared on the basis that all of the IB amounts are included in the assessable income of the partnership, or of the other partnership or trust estate;

then:

                     (d)  for the purposes only of working out the share of the net income included in the taxpayer's assessable income, the assessable income of the partnership, or of the other partnership or trust estate, includes all of the IB amounts; and

                     (e)  the taxpayer is entitled to a rebate in the taxpayer's assessment for the year of income of an amount equal to 30% of the IB attributable amount.

             (5)  The inclusion of an IB amount in the assessable income of a person under this section does not affect the denial of allowability of a deduction to another person in respect of the same amount under subsection 159GZZZZE(1) or (2).