Commonwealth Consolidated Acts Commonwealth Consolidated ActsOverview
(1) Section 82KZMD sets the amount and timing of deductions for expenditure that a taxpayer incurs in a year of income (the expenditure year ), if:
(a) apart from those sections, the taxpayer could deduct the expenditure under section 73B, 73BA, 73BH, 73QA, 73QB or former section 73Y of this Act or section 8‑1 of the Income Tax Assessment Act 1997 for the expenditure year; and
(b) the requirements in subsections (2), (3), (4) and (5) are met.
Requirements for taxpayer
(2) The taxpayer:
(a) must:
(i) carry on a business; or
(ii) be a taxpayer that is not an individual and that does not carry on a business; and
(b) if the taxpayer is a small business entity for the expenditure year--must, before lodging its return of income for that year or within such further time as the Commissioner allows, choose to apply section 82KZMD to the expenditure.
(3) The expenditure must be:
(a) either:
(i) incurred in carrying on a business; or
(ii) incurred otherwise than in carrying on a business by a taxpayer that is not an individual; and
(b) incurred under an agreement (see subsection 82KZL(1); and
(c) incurred in return for the doing of a thing under the agreement that is not to be wholly done within the expenditure year.
Requirement for expenditure not to be excluded expenditure
(4) The expenditure must not be excluded expenditure (see subsection 82KZL(1)).
Requirement for expenditure not to meet pre‑RBT obligation
(5) The expenditure must not meet a pre‑RBT obligation (see subsection 82KZL(1)).
Relationship with other provisions
(6) Section 82KZMD has effect:
(a) despite section 8‑1 of the Income Tax Assessment Act 1997 ; and
(b) subject to Division 245 of Schedule 2C to this Act.