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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  

           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  
   25.10.  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  
   26.19.  Rebatable benefits  
   26.20.  Assistance to students  
   26.22.  Political contributions and gifts  
   26.25.  Interest or royalty  
   26.25A. Seasonal Labour Mobility Program  
   26.26.  Non-share distributions and dividends  
   26.30.  Relative's travel expenses  
   26.35.  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  
   26.74.  Excess concessional contributions charge cannot be deducted  
   26.75.  Excess non-concessional contributions tax cannot be deducted  
   26.80.  Financing costs on loans to pay superannuation contribution  
   26.85.  Borrowing costs on loans to pay life insurance premiums  
   26.90.  Superannuation supervisory levy  
   26.95.  Superannuation guarantee charge  
   26.97.  National Disability Insurance Scheme expenditure  
   26.98.  Division 293 tax cannot be deducted  
   26.99.  Excess transfer balance tax cannot be deducted  
   26.100. Expenditure attributable to water infrastructure improvement payments  

           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 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  
   30.249C.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  
   30.260. Meaning of environmental organisation  
   30.265. Its principal purpose must be protecting the environment  
   30.270. Other requirements it must satisfy  
   30.275. Further requirement for a body corporate or a co-operative society  
   30.280. What must be on the register  
   30.285. Removal from the register  

              Subdivision 30-EA--Register of harm prevention charities

   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  
            

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  
   40.30.  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  
   40.85.  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  
   40.292. 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 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  

           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  

              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 and British Commonwealth Occupation Force

   52.117. 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

   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  

           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  

           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  
            

CHAPTER 2--Liability rules of general application
            

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

           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  
   59.40.  Issue of rights  
   59.50.  Native title 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  

   PART 2-20----TAX OFFSETS

           Division 61--Generally applicable tax offsets

              Subdivision 61-A--Dependant

   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-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-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-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  

              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  

   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

   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.  

           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  
   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  
   112.80. 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  

              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  
   118.435.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  

              Subdivision 118-G--Venture capital

   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  

   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)  
            

CHAPTER 3--Specialist liability rules
            

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

           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   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 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 50 152.200.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     CHAPTER 3--Specialist liability rules   PART 3-5--CORPORATE TAXPAYERS AND CORPORATE DISTRIBUTIONS 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 same business test   165.15. The same people must control the voting power, or the company must satisfy the same business 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 same business 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 same business 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 same business 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 same business test   165.129.Same people must control the voting power, or the company must satisfy the same business 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--The same business test 165.210.The test   165.212D.Restructure of MDOs etc.   165.212E.Entry history rule does not apply for the purposes of section 165-210   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 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   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   195.75. Determinations to take account of income years of less than 12 months   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 197.45. A franking debit arises in relation to the transfer   Subdivision 197-C--Consequence of transfer 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   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   207.160.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. Notice to give a franking return--general notice   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 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 it s 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.     CHAPTER 3--Specialist liability rules   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 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   230.525.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   PART 3-25----PARTICULAR KINDS OF TRUSTS Division 275--Australian managed investment trusts 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 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 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)   Subdivision 276-J--Debt-like trust instruments 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   Subdivision 276-K--Ceasing to be an AMIT 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   290.170.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   292.105.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   292.405.Release authority   292.410.Giving a release authority to a superannuation provider   292.415.Superannuation provider given release authority must pay amount   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 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 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   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 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   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   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 301.225.Superannuation lump sum member benefits less than $200 are tax free   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   302.65. Superannuation income stream benefits are tax free   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-B--sets out special circumstances in which superannuation benefits are neither assessable income nor exempt income. 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--excess concessional contributions   303.17. Payments from release authorities etc.--released non-concessional contributions and associated earnings   303.20. Payments from release authorities--Division 293 tax   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.   304.15. Excess payments from release authorities   304.20. Excess payments from release authorities--Division 293 tax   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   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 311--Loss relief and asset roll-over for transfer of amounts to a MySuper product 311.1. What this Division is about   Subdivision 311-A--Object of this Division 311.5. Object   Subdivision 311-B--Choosing loss transfers and asset roll-overs 311.10. Certain entities can choose transfer of losses, asset roll-overs, or both   Subdivision 311-C--Consequences of choosing to transfer losses 311.15. Who losses can be transferred to   311.20. Losses that can be transferred   311.25. Effect of transferring a net capital loss   311.30. Effect of transferring a tax loss   311.35. Realisation of certain assets after completion time   Subdivision 311-D--Consequences of choosing asset roll-over 311.40. Assets roll-over   311.45. CGT assets   311.50. Revenue assets   311.55. Further consequences for roll-overs involving life insurance companies   Subdivision 311-E--Choices 311.60. 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 to KiwiSaver schemes     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 small business entities 328.280.What this Subdivision is about   328.285.Trading stock for small 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   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 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 355.430.What this Subdivision is about   355.435.When extra income tax is payable   355.440.Entity receives government recoupment   355.445.Recoupment could relate to R&D activities   355.450.Amount on which extra income tax is payable   Subdivision 355-H--Feedstock adjustments 355.460.What this Subdivision is about   355.465.Feedstock adjustment to assessable income   355.470.Feedstock revenue   355.475.Application to connected entities and affiliates   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 Innovation and Science Australia   355.710.Amendment of assessments   355.715.Implications for other deductions and tax offsets   355.720.Certain related amounts may be reduced if notional deductions exceeded $100 million   355.750.Review of rate when notional deductions exceed $100 million   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 376.125.Production expenditure--general test   376.130.Production expenditure--special qualifying Australian production expenditure   376.135.Production expenditure--specific exclusions   376.140.Production expenditure--special rules for the location offset   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   376.165.Qualifying Australian production expenditure--special rules for the location offset and the PDV offset   376.170.Qualifying Australian production expenditure--special rules for the producer offset   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   376.250.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 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 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--Exploration development 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--Exploration development incentive franking credit 418.50. Exploration development incentive franking credit--ordinary case   418.55. Exploration development 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   418.85. Exploration credits must not exceed maximum exploration credit amount   418.90. Modulation factors   418.95. Effect on tax losses of creating exploration credits   Subdivision 418-E--Issuing exploration credits 418.110.Issuing exploration credits   418.115.Restricting exploration credits to post 1 July 2014 shares   418.120.Exploration credits to be issued on a proportionate basis   418.125.Expiry of exploration credits   418.130.Notifying the Commissioner of issuing or expiry of exploration credits   Subdivision 418-F--Excess exploration credits 418.150.Excess exploration credit tax   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   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   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   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   701.61. 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 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 finance leases   705.57. Adjustment to tax cost setting amount where loss of pre-CGT status of membership interests in joining entity   705.58. Assets and liabilities not set off against each other   705.59. Exception: treatment of linked assets and liabilities   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   705.80. 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 same business test for companies' post-1999 losses   707.130.Modified pattern of distributions test   707.135.Transferring loss transferred to joining entity because same business test was passed   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   711.55. 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 same business 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 same business 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 same business 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 775 715.370.Cost setting--reference time for determining currency exchange rate effect   Subdivision 715-F--Interactions with Division 230 715.375.Cost setting--amount of liability that is Division 230 financial arrangement   715.378.Cost setting--head company'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   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 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 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 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.Same business 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 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 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 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   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 superannuation entity   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 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   768.10. 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 significant global entities 815.350.What this Subdivision is about   815.355.Requirement to give statements   815.360.Replacement reporting periods   815.365.Exemptions   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 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 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 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 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   820.683.Recognition of internally generated intangible items--modifying application of accounting standards   820.684.Valuation of intangible assets if no active market--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   820.965.Review of Commissioner's decision   820.980.Records about arm's length debt amount and arm's length capital amount   820.985.Methodology of revaluation and independence of valuer   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 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--Seasonal Labour Mobility Program withholding tax 840.900.What this Subdivision is about   840.905.Liability for Seasonal Labour Mobility Program withholding tax   840.910.When Seasonal Labour Mobility Program withholding tax is payable   840.915.Certain income is non-assessable non-exempt income   840.920.Overpayment of Seasonal Labour Mobility Program withholding tax   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     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   Division 961--Notional tax offsets Subdivision 961-A--Dependant 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 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   PART 6-5--DICTIONARY DEFINITIONS Division 995--Definitions 995.1. Definitions  


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