INCOME TAX ASSESSMENT ACT 1997

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 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
11.10. Ordinary or statutory income which is exempt, no matter whose it is
11.15. Ordinary or statutory income which is exempt only if it is derived by certain entities [see Note 4]

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 [see Notes 2 and 5]

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
15.25. Amount received for lease obligation to repair
15.30. Insurance or indemnity for loss of assessable income
15.35. Interest on overpayments and early payments of tax
15.40. Providing mining, quarrying or prospecting information
15.45. Amounts paid under forestry agreements
15.46. 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
15.65. Sugar industry exit grants
15.70. Reimbursed car expenses
15.75. Bonuses

Division 17--Effect of GST etc

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
25.7. Advice about family tax benefit
25.10. Repairs
25.15. Amount paid for lease obligation to repair
25.20. Lease document expenses
25.25. Borrowing expenses
25.30. Expenses of discharging a mortgage
25.35. Bad debts
25.40. Loss from profit-making undertaking or plan
25.45. Loss by theft etc.
25.47. 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
25.105. Deductions for United Medical Protection Limited support payments
25.100. Travel between workplaces
25.110. Capital expenditure to terminate lease etc.

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
26.20. Assistance to students
26.25. Interest or royalty
26.26. Non-share distributions and dividends
26.30. Relative's travel expenses
26.35. Reducing deductions for amounts paid to related entities
26.40. Maintaining your family
26.45. Recreational club expenses
26.47. 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
26.65. Termination payments surcharge
26.68. Loss from disposal of eligible venture capital investments
26.70. Loss from disposal of venture capital equity
26.75. Excess 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

Division 27--Effect of input tax credits etc

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

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 among the 4 methods
28.20. Rules governing choice of method

Subdivision 28-C--The

28.25. How to calculate your deduction
28.30. Capital allowances
28.35. Substantiation

Subdivision 28-D--The

28.45. How to calculate your deduction
28.50. Eligibility
28.55. Capital allowances
28.60. Substantiation

Subdivision 28-E--The

28.70. How to calculate your deduction
28.75. Eligibility
28.80. Substantiation

Subdivision 28-F--The

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 don't need to use, one of the 4 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. Gifts to a public fund established to benefit a rural school hostel building must satisfy certain requirements
30.37. Scholarship etc. funds [see Note 3]
30.40. Research
30.45. Welfare and rights
30.46. Australian disaster relief funds
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-D--Testamentary gifts under the Cultural Bequests Program

30.230. Testamentary gifts of property
30.235. Getting a certificate
30.240. Limit on total value of gifts for an income year

Subdivision 30-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
30.249C.Requirements--certain cultural property gifts
30.249D.Requirements--conservation covenants

Subdivision 30-E--Register of environmental organisations

30.250. What this Subdivision is about
30.255. Establishing the register [see Note 7]
30.260. Meaning of environmental organisation
30.265. Its principal purpose must be protecting the environment
30.270. Other requirements it must satisfy [see Note 7]
30.275. Further requirement for a body corporate or a co-operative society
30.280. What must be on the register [see Note 7]
30.285. Removal from the register [see Note 7]

Subdivision 30-EA--Register of harm prevention charities

30.286. What this Subdivision is about
30.287. Establishing the register
30.288. Meaning of harm prevention charity
30.289. Principal activity--promoting the prevention or control of harm or abuse
30.289A.Other requirements
30.289B.What must be on the register
30.289C.Removal from the register

Subdivision 30-F--Register of cultural organisations

30.290. What this Subdivision is about
30.295. Establishing the register
30.300. Meaning of cultural organisation
30.305. What must be on the register
30.310. Removal from the register

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

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-C--(which is about registering the design of a non-compulsory uniform), starting at section 34-25; and

Subdivision 34-D--(which is about appeals from Industry Secretary's decision), starting at section 34-40.

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

PART 2-10--CAPITAL ALLOWANCES

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
40.30. 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 certain car methods
40.60. When a depreciating asset starts to decline in value
40.65. Choice of methods to work out the decline in value
40.70. Diminishing value method
40.72. Diminishing value method for post-9 May 2006 assets
40.75. Prime cost method
40.80. When you can deduct the asset's cost
40.85. Meaning of adjustable value and opening adjustable value of a depreciating asset

Subdivision 27-B;--

40.90. Debt forgiveness
40.95. Choice of determining effective life
40.100. Commissioner's determination of effective life
40.102. Capped life of certain depreciating assets
40.105. Self-assessing effective life
40.110. Recalculating effective life
40.115. Splitting a depreciating asset
40.120. Replacement spectrum licences
40.125. Merging depreciating assets
40.130. Choices
40.135. Certain anti-avoidance provisions
40.140. Getting tax information from associates

Subdivision 40-C--Cost

40.170. What this Subdivision is about
40.175. Cost

Subdivision 27-B;--

40.180. First element of cost
40.185. Amount you are taken to have paid to hold a depreciating asset or to receive a benefit
40.190. Second element of cost
40.195. Apportionment of cost
40.200. Exclusion from cost
40.205. Cost of a split depreciating asset
40.210. Cost of merged depreciating assets
40.215. Adjustment: double deduction
40.220. Cost reduced by amounts not of a capital nature
40.225. Adjustment: acquiring a car at a discount
40.230. Adjustment: car limit

Subdivision 40-D--Balancing adjustments

40.280. What this Subdivision is about
40.285. Balancing adjustments
40.290. Reduction for non-taxable use
40.292. Adjustments where deductions for decline in value also allowable under section 73BA or 73BH of Income Tax Assessment Act 1936
40.295. Meaning of balancing adjustment event
40.300. Meaning of termination value
40.305. Amount you are taken to have received under a balancing adjustment event
40.310. Apportionment of termination value
40.320. Car to which section 40-225 applies
40.325. Adjustment: car limit
40.335. Deduction for in-house software where you will never use it
40.340. Roll-over relief
40.345. What the roll-over relief is
40.350. Additional consequences
40.360. Notice to allow transferee to work out how this Division applies
40.365. Involuntary disposals
40.370. Balancing adjustments where there has been use of different car expense methods

Subdivision 40-E--Low-value and software development pools

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 and horticultural plants
40.520. Meaning of water facility and horticultural plant
40.525. Conditions
40.530. When a water facility or horticultural plant starts to decline in value
40.535. Meaning of horticulture and commercial horticulture
40.540. How you work out the decline in value for water facilities
40.545. How you work out the decline in value for horticultural plants
40.555. Amounts you cannot deduct
40.560. Non-arm's length transactions
40.565. Extra deduction for destruction of a horticultural plant
40.570. How this Subdivision applies to partners and partnerships
40.575. Getting tax information if you acquire a horticultural plant

Subdivision 40-G--Capital expenditure of primary producers and other landholders

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

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 body corporate to be registered under the Industry Research and Development Act
43.40. Deduction for destruction of capital works
43.45. Certain anti-avoidance provisions
43.50. Links and signposts to other parts of the Act
43.55. Anti-avoidance--arrangement etc. with tax-exempt entity

Subdivision 43-B--Establishing the deduction base

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 Innovation 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 research and development 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, science and religion
50.10. Community service
50.15. Employees and employers
50.20. Funds contributing to other funds
50.25. Government
50.30. Health
50.35. Mining
50.40. Primary and secondary resources, and tourism
50.45. Sports, culture, film and recreation
50.50. Special conditions for items 1.1 and 1.2
50.52. Special condition for items 1.1, 1.5, 1.5A, 1.5B and 4.1
50.55. Special conditions for items 1.3, 1.4, 6.1 and 6.2
50.57. Special condition for item 1.5
50.60. Special conditions for items 1.5A and 1.5B
50.65. Special conditions for item 1.6
50.70. Special conditions for items 1.7, 2.1, 9.1 and 9.2
50.72. Special condition for item 4.1
50.75. Certain distributions may be made overseas
50.80. Testamentary trusts may be treated as 2 trusts

Subdivision 50-B--Endorsing charitable entities as exempt from income tax

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 a copyright 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
51.60. Prime Minister's Prizes

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

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

52.117. Payments of travelling expenses are exempt

Subdivision 52-D--Exempt payments made by the Commonwealth to reimburse certain expenditure

52.125. Private health insurance incentive payments 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

52.150. Family assistance payments are exempt

Division 53--Various exempt payments

53.1. What this Division is about
53.10. Exemption of various types of payments
53.15. Supplementary amount of exceptional circumstances relief payment or farm help income support
53.20. Exemption of similar Australian and United Kingdom veterans' payments
53.25. Amounts of farm household support converted into grants

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
59.5. Bonus payments made to certain older Australians
59.10. Compensation under firearms surrender arrangements
59.15. Mining payments
59.20. Taxable amounts relating to franchise fees windfall tax
59.25. Taxable amounts relating to Commonwealth places windfall tax
59.30. Amounts you must repay
59.35. Amounts that would be mutual receipts but for prohibition on distributions to members
59.40. Issue of rights

PART 2-20--TAX OFFSETS

Division 61--Generally applicable tax offsets

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. Tax offset after a person 65 years or over ceases to be covered by policy
61.220. How to work out the incentive amount

Subdivision 61-I--First child tax offset

61.350. What this Subdivision is about
61.355. Who is entitled to a tax offset under this section
61.360. What is a child event?
61.365. First child only
61.370. Another carer with entitlement for another child
61.375. Selection rules
61.380. Special rules for death of first child
61.385. You may transfer your entitlement to a tax offset
61.390. Transfer is irrevocable
61.395. Transferor is not entitled to tax offset
61.400. Transferee is entitled to tax offset
61.405. How to claim a tax offset for a child
61.410. Claim is irrevocable
61.415. Formula for working out amount of tax offset
61.420. Component of formula--entitlement amount
61.425. Component of formula--total of the entitlement days
61.430. What is your base year?
61.440. Additional tax offset if a child is in your care before you legally adopt the child
61.445. When a child is first in your care
61.450. What is your base year if a child is in your care before you legally adopt the child?
61.455. Old Subdivision applies if you would be worse off

Subdivision 61-IA--Child care tax offset

61.460. What this Subdivision is about
61.465. Object of this Subdivision
61.470. Who is entitled to the tax offset
61.475. Meaning of approved child care
61.480. Meaning of entitled to child care benefit and entitlement to child care benefit
61.485. Amount of the child care tax offset
61.490. Component of formula--approved child care fees
61.495. Component of formula--child care offset limit
61.496. Entitlement to transfer
61.497. Form of transfer

Subdivision 61-J--25

61.500. What this Subdivision is about
61.505. 25% entrepreneurs' tax offset: individual or company
61.510. 25% entrepreneurs' tax offset: partner in a partnership
61.515. 25% entrepreneurs' tax offset: trustee of a trust
61.520. 25% entrepreneurs' tax offset: beneficiary of a trust
61.525. Meaning of net small business income and small business entity turnover

Subdivision 61-K--Mature age worker tax offset

61.550. What this Subdivision is about
61.555. Object of this Subdivision
61.560. Entitlement to the mature age worker tax offset
61.565. The amount of the tax offset
61.570. Definition of net income from working

Subdivision 61-L--Tax offset for Medicare levy surcharge

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

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

Subdivision 165-A--would prevent the company from deducting it for the current year.

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
67.25. Tax offsets that are subject to the refundable tax offset rules

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

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
70.70. Valuing interests in FIFs

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

82.5. What this Subdivision is about
82.10. Taxation of life benefit termination payments

Subdivision 82-B--Employment termination payments

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.

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.