INCOME TAX ASSESSMENT ACT 1997

4.1. Who must pay income tax
4.5. Meaning of you
4.10. How to work out how much income tax you must pay
4.15. How to work out your taxable income
4.25. Special provisions for working out your basic income tax liability

Division 6--Assessable income and exempt income

6.1. Diagram showing relationships among concepts in this Division
6.5. Income according to ordinary concepts (ordinary income)
6.10. Other assessable income (statutory income)
6.15. What is not assessable income
6.20. Exempt income
6.23. Non-assessable non-exempt income
6.25. Relationships among various rules about ordinary income

Division 8--Deductions

8.1. General deductions
8.5. Specific deductions
8.10. No double deductions

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

Division 9--Entities that must pay income tax

9.1A. Effect of this Division
9.1. List of entities
9.5. Entities that work out their income tax by reference to something other than taxable income

Division 10--Particular kinds of assessable income

10.1. Effect of this Division
10.5. List of provisions about assessable income

Division 11--Particular kinds of non-assessable income

Subdivision 11-A--Lists of classes of exempt income

11.1A. Effect of this Subdivision
11.1. Overview
11.5. Entities that are exempt, no matter what kind of ordinary or statutory income they have
11.10. Ordinary or statutory income which is exempt, no matter whose it is
11.15. Ordinary or statutory income which is exempt only if it is derived by certain entities

Subdivision 11-B--Particular kinds of non-assessable non-exempt income

11.50. Effect of this Subdivision
11.55. List of non-assessable non-exempt income provisions

Division 12--Particular kinds of deductions

12.1. Effect of this Division
12.5. List of provisions about deductions [see Note 4]

Division 13--Tax offsets

13.1A. Effect of this Division
13.1. List of tax offsets

CHAPTER 2--Liability rules of general application

PART 2-1--ASSESSABLE INCOME

Division 15--Some items of assessable income

15.1. What this Division is about
15.2. Allowances and other things provided in respect of employment or services
15.3. Return to work payments
15.5. Accrued leave transfer payments
15.10. Bounties and subsidies
15.15. Profit-making undertaking or plan
15.20. Royalties
15.22. Payments made to members of a copyright collecting society
15.25. Amount received for lease obligation to repair
15.30. Insurance or indemnity for loss of assessable income
15.35. Interest on overpayments and early payments of tax
15.40. Providing mining, quarrying or prospecting information
15.45. Amounts paid under forestry agreements
15.46. Amounts paid under forestry managed investment schemes
15.50. Work in progress amounts
15.55. Certain amounts paid under funeral policy
15.60. Certain amounts paid under scholarship plan
15.65. Sugar industry exit grants
15.70. Reimbursed car expenses
15.75. Bonuses
15.80. Employer FHSA contributions etc.

Division 17--Effect of GST etc

17.1. What this Division is about
17.5. GST and increasing adjustments
17.10. Certain decreasing adjustments
17.15. Elements in calculation of amounts
17.20. GST groups and GST joint ventures
17.30. Special credits because of indirect tax transition
17.35. Certain sections not to apply to certain assets or expenditure

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

20.1. What this Division is about
20.5. Other provisions that reverse the effect of deductions

Subdivision 20-A--Insurance, indemnity or other recoupment for deductible expenses

20.10. What this Subdivision is about
20.15. How to use this Subdivision
20.20. Assessable recoupments
20.25. What is recoupment?
20.30. Tables of deductions for which recoupments are assessable
20.35. If the expense is deductible in a single income year
20.40. If the expense is deductible over 2 or more income years
20.45. Effect of balancing charge
20.50. If the expense is only partially deductible
20.55. Meaning of previous recoupment law
20.60. If you are the only entity that can deduct an amount for the loss or outgoing
20.65. If 2 or more entities can deduct amounts for the loss or outgoing

Subdivision 20-B--Disposal of a car for which lease payments have been deducted

20.100. What this Subdivision is about
20.105. Map of this Subdivision
20.110. Disposal of a leased car for profit
20.115. Working out the profit on the disposal
20.120. Meaning of notional depreciation
20.125. Disposal of a leased car for profit
20.130. Successive leases
20.135. No amount included if earlier disposal for market value
20.140. Reducing the amount to be included if there has been an earlier disposal
20.145. No amount included if you inherited the car
20.150. Reducing the amount to be included if another provision requires you to include an amount for the disposal
20.155. Exception for particular cars taken on hire
20.157. Exception for small business entities
20.160. Disposal of an interest in a car

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

Division 25--Some amounts you can deduct

25.1. What this Division is about
25.5. Tax-related expenses
25.7. Advice about family tax benefit
25.10. Repairs
25.15. Amount paid for lease obligation to repair
25.20. Lease document expenses
25.25. Borrowing expenses
25.30. Expenses of discharging a mortgage
25.35. Bad debts
25.40. Loss from profit-making undertaking or plan
25.45. Loss by theft etc.
25.47. Misappropriation where a balancing adjustment event occurs
25.50. Payments of pensions, gratuities or retiring allowances
25.55. Payments to associations
25.60. Parliament election expenses
25.65. Local government election expenses
25.70. Deduction for election expenses does not extend to entertainment
25.75. Rates and land taxes on premises used to produce mutual receipts
25.85. Certain returns in respect of debt interests
25.90. Deduction relating to foreign non-assessable non-exempt income
25.95. Deduction for work in progress amounts
25.105. Deductions for United Medical Protection Limited support payments
25.100. Travel between workplaces
25.110. Capital expenditure to terminate lease etc.

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

26.1. What this Division is about
26.5. Penalties
26.10. Leave payments
26.15. Franchise fees windfall tax
26.17. Commonwealth places windfall tax
26.20. Assistance to students
26.25. Interest or royalty
26.26. Non-share distributions and dividends
26.30. Relative's travel expenses
26.35. Reducing deductions for amounts paid to related entities
26.40. Maintaining your family
26.45. Recreational club expenses
26.47. Non-business boating activities
26.50. Expenses for a leisure facility
26.52. Bribes to foreign public officials
26.53. Bribes to public officials
26.54. Expenditure relating to illegal activities
26.55. Limit on deductions
26.60. Superannuation contributions surcharge
26.65. Termination payments surcharge
26.68. Loss from disposal of eligible venture capital investments
26.70. Loss from disposal of venture capital equity
26.75. Excess contributions tax cannot be deducted
26.80. Financing costs on loans to pay superannuation contribution
26.85. Borrowing costs on loans to pay life insurance premiums
26.90. Superannuation supervisory levy
26.95. Superannuation guarantee charge

Division 27--Effect of input tax credits etc

27.1. What this Division is about

Subdivision 27-A--General

27.5. Input tax credits and decreasing adjustments
27.10. Certain increasing adjustments
27.15. GST payments
27.20. Elements in calculation of amounts
27.25. GST groups and GST joint ventures
27.35. Certain sections not to apply to certain assets or expenditure

Subdivision 27-B--Effect of input tax credits etc

27.80. Cost or opening adjustable value of depreciating assets reduced for input tax credits
27.85. Cost or opening adjustable value of depreciating assets reduced: decreasing adjustments
27.87. Certain decreasing adjustments included in assessable income
27.90. Cost or opening adjustable value of depreciating assets increased: increasing adjustments
27.92. Certain increasing adjustments can be deducted
27.95. Balancing adjustment events
27.100. Pooling
27.105. Other Division 40 expenditure
27.110. Input tax credit etc. relating to 2 or more things

Division 28--Car expenses

28.1. What this Division is about
28.5. Map of this Division

Subdivision 28-A--Deductions for car expenses

28.10. Application of Division 28
28.12. Car expenses
28.13. Meaning of car expense

Subdivision 28-B--Choosing which method to use

28.14. What this Subdivision is about
28.15. Choosing among the 4 methods
28.20. Rules governing choice of method

Subdivision 28-C--The

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

Subdivision 28-D--The

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

Subdivision 28-E--The

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

Subdivision 28-F--The

28.90. How to calculate your deduction
28.95. Eligibility
28.100. Substantiation

Subdivision 28-G--Keeping a log book

28.105. What this Subdivision is about
28.110. Steps for keeping a log book
28.115. Income years for which you need to keep a log book
28.120. Choosing the 12 week period for a log book
28.125. How to keep a log book
28.130. Replacing one car with another

Subdivision 28-H--Odometer records for a period

28.135. What this Subdivision is about
28.140. How to keep odometer records for a car for a period

Subdivision 28-I--Retaining the log book and odometer records

28.150. Retaining the log book for the retention period
28.155. Retaining odometer records

Subdivision 28-J--Situations where you cannot use, or don't need to use, one of the 4 methods

28.160. What this Subdivision is about
28.165. Exception for particular cars taken on hire
28.170. Exception for particular cars used in particular ways
28.175. Further miscellaneous exceptions
28.180. Car expenses related to award transport payments
28.185. Application of Subdivision 28-J to recipients and payers of certain withholding payments

Division 30--Gifts or contributions

30.1. What this Division is about
30.5. How to find your way around this Division
30.10. Index

Subdivision 30-A--Deductions for gifts or contributions

30.15. Table of gifts or contributions that you can deduct
30.17. Requirements for certain recipients

Subdivision 30-B--Tables of recipients for deductible gifts

30.20. Health
30.25. Education
30.30. Gifts that must be for certain purposes
30.35. Gifts to a public fund established to benefit a rural school hostel building must satisfy certain requirements
30.37. Scholarship etc. funds [see Note 5]
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-D--Testamentary gifts under the Cultural Bequests Program

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

Subdivision 30-DA--Donations to political parties and independent candidates and members

30.241. What this Subdivision is about
30.242. Deduction for political contributions and gifts
30.243. Amount of the deduction
30.244. When an individual is an independent candidate
30.245. When an individual is an independent member

Subdivision 30-DB--Spreading certain gift and covenant deductions over up to 5 income years

30.246. What this Subdivision is about
30.247. Gifts and covenants for which elections can be made
30.248. Making an election
30.249. Effect of election
30.249A.Requirements--environmental property gifts
30.249B.Requirements--heritage property gifts
30.249C.Requirements--certain cultural property gifts
30.249D.Requirements--conservation covenants

Subdivision 30-E--Register of environmental organisations

30.250. What this Subdivision is about
30.255. Establishing the register
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 [see Note 13]
30.305. What must be on the register [see Note 13]
30.310. Removal from the register

Subdivision 30-G--Index to this Division

30.315. Index
30.320. Effect of this Subdivision

Division 31--Conservation covenants

31.1. What this Division is about
31.5. Deduction for entering into conservation covenant
31.10. Requirements for fund, authority or institution
31.15. Valuations by the Commissioner

Division 32--Entertainment expenses

32.1. What this Division is about

Subdivision 32-A--No deduction for entertainment expenses

32.5. No deduction for entertainment expenses
32.10. Meaning of entertainment
32.15. No deduction for property used for providing entertainment

Subdivision 32-B--Exceptions

32.20. The main exception--fringe benefits
32.25. The tables set out the other exceptions
32.30. Employer expenses
32.35. Seminar expenses
32.40. Entertainment industry expenses
32.45. Promotion and advertising expenses
32.50. Other expenses

Subdivision 32-C--Definitions relevant to the exceptions

32.55. In-house dining facility (employer expenses table items 1.1 and 1.2)
32.60. Dining facility (employer expenses table item 1.3)
32.65. Seminars (seminar expenses table item 2.1)

Subdivision 32-D--In-house dining facilities

32.70. $30 is assessable for each meal provided to non-employee in an in-house dining facility

Subdivision 32-E--Anti-avoidance

32.75. Commissioner may treat you as having incurred entertainment expense

Subdivision 32-F--Special rules for companies and partnerships

32.80. Company directors
32.85. Directors, employees and property of wholly-owned group company
32.90. Partnerships

Division 34--Non-compulsory uniforms

34.1. What this Division is about
34.3. What you need to read

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

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

Subdivision 34-A--Application of Division 34

34.5. This Division applies to employees and others
34.7. This Division applies to employers and others

Subdivision 34-B--Deduction for your non-compulsory uniform

34.10. What you can deduct
34.15. What is a non-compulsory uniform?
34.20. What are occupation specific clothing and protective clothing?

Subdivision 34-C--Registering the design of a non-compulsory uniform

34.25. Application to register the design
34.30. Industry Secretary's decision on application
34.33. Written notice of decision
34.35. When uniform becomes registered

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

34.40. Review of decisions by the Administrative Appeals Tribunal

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

34.45. Keeping of the Register
34.50. Changes to the Register

Subdivision 34-F--Approved occupational clothing guidelines

34.55. Approved occupational clothing guidelines

Subdivision 34-G--The Industry Secretary

34.60. Industry Secretary to give Commissioner information about entries
34.65. Delegation of powers by Industry Secretary

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

35.1. What this Division is about
35.5. Object
35.10. Deferral of deductions from non-commercial business activities
35.15. Modification if you have exempt income
35.20. Modification if you become bankrupt
35.25. Application of Division to certain partnerships
35.30. Assessable income test
35.35. Profits test
35.40. Real property test
35.45. Other assets test
35.50. Apportionment
35.55. Commissioner's discretion

Division 36--Tax losses of earlier income years

36.1. What this Division is about

Subdivision 36-A--Deductions for tax losses of earlier income years

36.10. How to calculate a tax loss for an income year
36.15. How to deduct tax losses of entities other than corporate tax entities
36.17. How to deduct tax losses of corporate tax entities
36.20. Net exempt income
36.25. Special rules about tax losses

Subdivision 36-B--Effect of you becoming bankrupt

36.30. What this Subdivision is about
36.35. No deduction for tax loss incurred before bankruptcy
36.40. Deduction for amounts paid for debts incurred before bankruptcy
36.45. Limit on deductions for amounts paid

Subdivision 36-C--Excess franking offsets

36.50. What this Subdivision is about
36.55. Converting excess franking offsets into tax loss

PART 2-10----CAPITAL ALLOWANCES

Division 40--Capital allowances

40.1. What this Division is about
40.10. Simplified outline of this Division

Subdivision 40-A--Objects of Division

40.15. Objects of Division

Subdivision 40-B--Core provisions

40.20. What this Subdivision is about
40.25. Deducting amounts for depreciating assets
40.30. What a depreciating asset is
40.35. Jointly held depreciating assets
40.40. Meaning of hold a depreciating asset
40.45. Assets to which this Division does not apply
40.50. Assets for which you deduct under another Subdivision
40.53. Alterations etc. to certain depreciating assets
40.55. Use of certain car methods
40.60. When a depreciating asset starts to decline in value
40.65. Choice of methods to work out the decline in value
40.70. Diminishing value method
40.72. Diminishing value method for post-9 May 2006 assets
40.75. Prime cost method
40.80. When you can deduct the asset's cost
40.85. Meaning of adjustable value and opening adjustable value of a depreciating asset

Subdivision 27-B;--

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

Subdivision 40-C--Cost

40.170. What this Subdivision is about
40.175. Cost

Subdivision 27-B;--

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

Subdivision 40-D--Balancing adjustments

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

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

40.420. What this Subdivision is about
40.425. Allocating assets to a low-value pool
40.430. Rules for assets in low-value pools
40.435. Private or exempt use of assets
40.440. How you work out the decline in value of assets in low-value pools
40.445. Balancing adjustment events
40.450. Software development pools
40.455. How to work out your deduction
40.460. Your assessable income includes consideration for pooled software

Subdivision 40-F--Primary production depreciating assets

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

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

40.625. What this Subdivision is about
40.630. Landcare operations
40.635. Meaning of landcare operation
40.640. Meaning of approved management plan
40.645. Electricity and telephone lines
40.650. Amounts you cannot deduct under this Subdivision
40.655. Meaning of connecting power to land or upgrading the connection and metering point
40.660. Non-arm's length transactions
40.665. How this Subdivision applies to partners and partnerships
40.670. Approval of persons as farm consultants
40.675. Review of decisions relating to approvals

Subdivision 40-H--Capital expenditure that is immediately deductible

40.725. What this Subdivision is about
40.730. Deduction for expenditure on exploration or prospecting
40.735. Deduction for expenditure on mining site rehabilitation
40.740. Meaning of ancillary mining activities and mining building site
40.745. No deduction for certain expenditure
40.750. Deduction for payments of petroleum resource rent tax
40.755. Environmental protection activities
40.760. Limits on deductions from environmental protection activities
40.765. Non-arm's length transactions

Subdivision 40-I--Capital expenditure that is deductible over time

40.825. What this Subdivision is about
40.830. Project pools
40.832. Project pools for post-9 May 2006 projects
40.835. Reduction of deduction
40.840. Meaning of project amount
40.845. Project life
40.855. When you start to deduct amounts for a project pool
40.860. Meaning of mining capital expenditure
40.865. Meaning of transport capital expenditure
40.870. Meaning of transport facility
40.875. Meaning of processed minerals and minerals treatment
40.880. Business related costs
40.885. Non-arm's length transactions

Subdivision 40-J--Capital expenditure for the establishment of trees in carbon sink forests

40.1000.What this Subdivision is about
40.1005.Deduction for expenditure for establishing trees in carbon sink forests
40.1010.Expenditure for establishing trees in carbon sink forests
40.1015.Carbon sequestration by trees
40.1020.Certain expenditure disregarded
40.1025.Non-arm's length transactions

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

Subdivision 43-B--Establishing the deduction base

43.60. What this Subdivision is about
43.65. Explanatory material
43.70. What is construction expenditure?
43.72. Meaning of forestry road, timber operation and timber mill building
43.75. Construction expenditure area
43.80. When capital works begin
43.85. Pools of construction expenditure
43.90. Table of intended use at time of completion of construction
43.95. Meaning of hotel building and apartment building
43.100. Certificates by Innovation Australia

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

43.105. What this Subdivision is about
43.110. Explanatory material
43.115. Your area and your construction expenditure--owners
43.120. Your area and your construction expenditure--lessees and quasi-ownership right holders
43.125. Lessees' or right holders' pools can revert to owner
43.130. Identifying your area on acquisition or disposal

Subdivision 43-D--Deductible uses of capital works

43.135. What this Subdivision is about
43.140. Using your area in a deductible way
43.145. Using your area in the 4% manner
43.150. Meaning of industrial activities

Subdivision 43-E--Special rules about uses

43.155. What this Subdivision is about
43.160. Your area is used for a purpose if it is maintained ready for use for the purpose
43.165. Temporary cessation of use
43.170. Own use--capital works other than hotel and apartment buildings
43.175. Own use--hotel and apartment buildings
43.180. Special rules for hotel and apartment buildings
43.185. Residential or display use
43.190. Use of facilities not commonly provided, and of certain buildings used to operate a hotel, motel or guest house
43.195. Use for research and development activities must be in connection with a business

Subdivision 43-F--Calculation of deduction

43.200. What this Subdivision is about
43.205. Explanatory material
43.210. Deduction for capital works begun after 26 February 1992
43.215. Deduction for capital works begun before 27 February 1992
43.220. Capital works taken to have begun earlier for certain purposes

Subdivision 43-G--Undeducted construction expenditure

43.225. What this Subdivision is about
43.230. Calculating undeducted construction expenditure--common step
43.235. Post-26 February 1992 undeducted construction expenditure
43.240. Pre-27 February 1992 undeducted construction expenditure

Subdivision 43-H--Balancing deduction on destruction of capital works

43.245. What this Subdivision is about
43.250. The amount of the balancing deduction
43.255. Amounts received or receivable
43.260. Apportioning amounts received for destruction

Division 45--Disposal of leases and leased plant

45.1. What this Division is about
45.5. Disposal of leased plant or lease
45.10. Disposal of interest in partnership
45.15. Disposal of shares in 100% subsidiary that leases plant
45.20. Disposal of shares in 100% subsidiary that leases plant in partnership
45.25. Group members liable to pay outstanding tax
45.30. Reduction for certain plant acquired before 21.9.99
45.35. Limit on amount included for plant for which there is a CGT exemption
45.40. Meaning of plant and written down value

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

Division 50--Exempt entities

Subdivision 50-A--Various exempt entities

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

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

50.100. What this Subdivision is about
50.105. Endorsement by Commissioner
50.110. Entitlement to endorsement

Division 51--Exempt amounts

51.1. Amounts of ordinary income and statutory income that are exempt
51.5. Defence
51.10. Education and training
51.30. Welfare
51.32. Compensation payments for loss of tax exempt payments
51.33. Compensation payments for loss of pay and/or allowances as a Defence reservist
51.35. Payments to a full-time student at a school, college or university
51.40. Payments to a secondary student
51.42. Bonuses for early completion of an apprenticeship
51.43. Income collected or derived by a copyright collecting society
51.50. Maintenance payments to a spouse or child
51.52. Income derived from eligible venture capital investments by ESVCLPs
51.54. Gain or profit from disposal of eligible venture capital investments
51.55. Gain or profit from disposal of venture capital equity
51.57. Interest on judgment debt relating to personal injury
51.60. Prime Minister's Prizes

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

52.1. What this Division is about

Subdivision 52-A--Exempt payments under the Social Security Act 1991

52.5. What this Subdivision is about
52.10. How much of a social security payment is exempt?
52.15. Supplementary amounts of payments
52.20. Tax-free amount of an ordinary payment after the death of your partner
52.25. Tax-free amount of certain bereavement lump sum payments
52.30. Tax-free amount of certain other bereavement lump sum payments
52.35. Tax-free amount of a lump sum payment made because of the death of a person you are caring for
52.40. Provisions of the Social Security Act 1991 under which payments are made

Subdivision 52-B--Exempt payments under the Veterans' Entitlements Act 1986

52.60. What this Subdivision is about
52.65. How much of a veterans' affairs payment is exempt?
52.70. Supplementary amounts of payments
52.75. Provisions of the Veterans' Entitlements Act 1986 under which payments are made

Subdivision 52-C--Exempt payments made because of the Veterans' Entitlements

52.100. What this Subdivision is about
52.105. Supplementary amount of a payment made under the Repatriation Act 1920 is exempt
52.110. Other exempt payments

Subdivision 52-CA--Exempt payments under the Military Rehabilitation and Compensation Act 2004

52.112. What this Subdivision is about
52.114. How much of a payment under the Military Rehabilitation and Compensation Act is exempt?

Subdivision 52-CB--Exempt payments under the Australian Participants in British Nuclear Tests

52.117. Payments of travelling expenses are exempt

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

52.125. Private health insurance incentive payments are exempt

Subdivision 52-E--Exempt payments under the ABSTUDY scheme

52.130. What this Subdivision is about
52.131. Payments under ABSTUDY scheme
52.132. Supplementary amount of payment
52.133. Tax-free amount of ordinary payment on death of partner if no bereavement payment payable
52.134. Tax-free amount if you receive a bereavement lump sum payment

Subdivision 52-F--Exemption of Commonwealth education or training payments

52.140. Supplementary amount of a Commonwealth education or training payment is exempt
52.145. Meaning of Commonwealth education or training payment

Subdivision 52-G--Exempt payments under the A New Tax System

52.150. Family assistance payments are exempt

Subdivision 52-H--Other exempt payments

52.160. Economic security strategy payments are exempt
52.165. Household stimulus payments are exempt

Division 53--Various exempt payments

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

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

54.1. What this Division is about

Subdivision 54-A--Definitions

54.5. Definitions
54.10. Meaning of structured settlement and structured order

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

54.15. Personal injury annuity exemption for injured person
54.20. Lump sum compensation etc. would not have been assessable
54.25. Requirements of the annuity instrument
54.30. Requirements for payments of the annuity
54.35. Payments during the guarantee period on the death of the injured person
54.40. Requirement for minimum monthly level of support

Subdivision 54-C--Tax exemption for personal injury lump sums

54.45. Personal injury lump sum exemption for injured person
54.50. Lump sum compensation would not have been assessable
54.55. Requirements of the instrument under which the lump sum is paid
54.60. Requirements for payments of the lump sum

Subdivision 54-D--Miscellaneous

54.65. Exemption for certain payments to reversionary beneficiaries
54.70. Special provisions about trusts
54.75. Minister to arrange for review and report

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

55.1. What this Division is about
55.5. Occupational superannuation payments
55.10. Education entry payments

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

58.1. What this Division is about

Subdivision 58-A--Application

58.5. Application of Division
58.10. When an asset is acquired in connection with the acquisition of a business

Subdivision 58-B--Calculating decline in value of privatised assets under Division 40

58.60. Purpose of rules in this Subdivision
58.65. Choice of method to work out cost of privatised asset
58.70. Application of Division 40
58.75. Meaning of notional written down value
58.80. Meaning of undeducted pre-existing audited book value
58.85. Pre-existing audited book value of depreciating asset
58.90. Method and effective life for transition entity

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

59.1. What this Division is about
59.5. Bonus payments made to certain older Australians
59.10. Compensation under firearms surrender arrangements
59.15. Mining payments
59.20. Taxable amounts relating to franchise fees windfall tax
59.25. Taxable amounts relating to Commonwealth places windfall tax
59.30. Amounts you must repay
59.35. Amounts that would be mutual receipts but for prohibition on distributions to members
59.40. Issue of rights
59.45. Tax bonus for the 2007-08 income year
59.50. Clean-up and Restoration Grants for 2009 Victorian bushfires

PART 2-20----TAX OFFSETS

Division 61--Generally applicable tax offsets

Subdivision 61-G--Private health insurance offset complementary to Part 2-2 of the Private Health Insurance Act 2007

61.200. What this Subdivision is about
61.205. Entitlement to the private health insurance tax offset
61.210. Amount of the private health insurance tax offset
61.215. Tax offset after a person 65 years or over ceases to be covered by policy
61.220. How to work out the incentive amount

Subdivision 61-I--First child tax offset

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

Subdivision 61-IA--Child care tax offset

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

Subdivision 61-J--25

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

Subdivision 61-K--Mature age worker tax offset

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

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

61.575. What this Subdivision is about
61.580. Entitlement to a tax offset
61.585. The amount of a tax offset
61.590. Definition of MLS lump sums

Subdivision 61-M--Education expenses tax offset

61.600. What this Subdivision is about
61.610. Entitlement to education expenses tax offset
61.620. Eligibility in respect of another individual
61.630. Schooling requirement
61.640. Education expenses
61.650. Amount of education expenses tax offset
61.660. Education expenses tax offset limit
61.670. Shared care
61.680. Excess education expenses

Division 63--Common rules for tax offsets

63.1. What this Division is about
63.10. Priority rules

Division 65--Tax offset carry forward rules

65.10. What this Division is about
65.30. Amount carried forward
65.35. How to apply carried forward tax offsets
65.40. When a company cannot apply a tax offset

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

65.50. Effect of bankruptcy
65.55. Deduction for amounts paid for debts incurred before bankruptcy

Division 67--Refundable tax offset rules

67.10. What this Division is about
67.20. Which tax offsets this Division applies to
67.23. Refundable tax offsets
67.25. Refundable tax offsets--franked distributions

PART 2-25----TRADING STOCK

Division 70--Trading stock

70.1. What this Division is about
70.5. The 3 key features of tax accounting for trading stock

Subdivision 70-A--What is trading stock

70.10. Meaning of trading stock

Subdivision 70-B--Acquiring trading stock

70.15. In which income year do you deduct an outgoing for trading stock?
70.20. Non-arm's length transactions
70.25. Cost of trading stock is not a capital outgoing
70.30. Starting to hold as trading stock an item you already own

Subdivision 70-C--Accounting for trading stock you hold at the start or end of the income year

70.35. You include the value of your trading stock in working out your assessable income and deductions
70.40. Value of trading stock at start of income year
70.45. Value of trading stock at end of income year
70.50. Valuation if trading stock obsolete etc.
70.55. Working out the cost of natural increase of live stock
70.60. Valuation of horse breeding stock
70.65. Working out the horse opening value and the horse reduction amount
70.70. Valuing interests in FIFs

Subdivision 70-D--Assessable income arising from disposals of trading stock and certain other assets

70.75. What this Subdivision is about
70.80. Why the rules in this Subdivision are necessary
70.85. Application of this Subdivision to certain other assets
70.90. Assessable income on disposal of trading stock outside the ordinary course of business
70.95. Purchase price is taken to be market value
70.100. Notional disposal when you stop holding an item as trading stock
70.105. Death of owner
70.110. You stop holding an item as trading stock but still own it
70.115. Compensation for lost trading stock

Subdivision 70-E--Miscellaneous

70.120. Deducting capital costs of acquiring trees

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

Division 80--General rules

80.1. What this Division is about
80.5. Holding of an office
80.10. Application to the termination of employment
80.15. Transfer of property
80.20. Payments for your benefit or at your direction or request

Division 82--Employment termination payments

82.1. What this Division is about

Subdivision 82-A--Employment termination payments

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

Subdivision 82-B--Employment termination payments

82.60. What this Subdivision is about
82.65. Death benefits for dependants
82.70. Death benefits for non-dependants
82.75. Death benefits paid to trustee of deceased estate

Subdivision 82-C--Key concepts

82.125. What this Subdivision is about
82.130. What is an employment termination payment?
82.135. Payments that are not employment termination payments
82.140. Tax free component of an employment termination payment
82.145. Taxable component of an employment termination payment
82.150. What is an invalidity segment of an employment termination payment?
82.155. What is a pre-July 83 segment of an employment termination payment?
82.160. What is the ETP cap amount?

Division 83--Other payments on termination of employment

83.1. What this Division is about

Subdivision 83-A--Unused annual leave payments

83.5. What this Subdivision is about
83.10. Unused annual leave payment is assessable
83.15. Entitlement to tax offset

Subdivision 83-B--Unused long service leave payments

83.65. What this Subdivision is about
83.70. Application--long service leave
83.75. Meaning of unused long service leave payment
83.80. Taxation of unused long service leave payments
83.85. Entitlement to tax offset
83.90. Meaning of pre-16/8/78 period , pre-18/8/93 period , post-17/8/93 period and long service leave employment period
83.95. How to work out amount of payment attributable to each period
83.100. How to work out unused days of long service leave for each period
83.105. How to work out long service leave accrued in each period
83.110. Leave accrued in pre-16/8/78, pre-18/8/93 and post-17/8/93 periods--employment full-time and part-time
83.115. Working out used days of long service leave if leave taken at less than full pay

Subdivision 83-C--Genuine redundancy payments and early retirement scheme payments

83.165. What this Subdivision is about
83.170. Tax-free treatment of genuine redundancy payments and early retirement scheme payments
83.175. What is a genuine redundancy payment?
83.180. What is an early retirement scheme payment?

Subdivision 83-D--Foreign termination payments

83.230. What this Subdivision is about
83.235. Termination payments tax free--foreign resident period
83.240. Termination payments tax free--Australian resident period

Subdivision 83-E--Other payments

83.290. What this Subdivision is about
83.295. Termination payments made more than 12 months after termination etc.

PART 2-42----PERSONAL SERVICES INCOME

Division 84--Introduction

84.1. What this Part is about
84.5. Meaning of personal services income
84.10. This Part does not imply that individuals are employees

Division 85--Deductions relating to personal services income

85.1. What this Division is about
85.5. Object of this Division
85.10. Deductions for non-employees relating to personal services income
85.15. Deductions for rent, mortgage interest, rates and land tax
85.20. Deductions for payments to associates etc.
85.25. Deductions for superannuation for associates
85.30. Exception: personal services businesses
85.35. Exception: employees, office holders and religious practitioners
85.40. Application of Subdivision 900-B to individuals who are not employees

Division 86--Alienation of personal services income

86.1. What this Division is about
86.5. A simple description of what this Division does

Subdivision 86-A--General

86.10. Object of this Division
86.15. Effect of obtaining personal services income through a personal services entity
86.20. Offsetting the personal services entity's deductions against personal services income
86.25. Apportionment of entity maintenance deductions among several individuals
86.27. Deduction for net personal services income loss
86.30. Assessable income etc. of the personal services entity
86.35. Later payments of, or entitlements to, personal services income to be disregarded for income tax purposes
86.40. Salary payments shortly after an income year

Subdivision 86-B--Entitlement to deductions

86.60. 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
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

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.Modifying or extending the 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

104.210.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 section 73BA depreciating assets: 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
104.530.Discharged amount of liability differs from amount for allocable cost amount purposes: CGT event L7
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--Security holders

106.60. Acts by security holders

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

108.55. 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
109.15. Exceptions

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
112.37. Put options

Subdivision 112-B--Finding tables for special rules

112.40. Effect of this Subdivision
112.45. CGT events
112.48. Gifts acquired by associates
112.50. Main residence
112.53. Scrip for scrip roll-over
112.53AA.Statutory licences
112.53A.MDO roll-over
112.53B.Exchange of stapled ownership interests for units in a unit trust
112.54. Demergers
112.55. Effect of you dying
112.60. Bonus shares or units
112.65. Rights
112.70. Convertible interests
112.75. Employee share schemes
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
115.40. 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

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.Special rule for assessing trustee under paragraph 98(3)(b) of the Income Tax Assessment Act 1936
115.222.Special rule for assessing trustee under subsection 98(4) of the Income Tax Assessment Act 1936
115.225.Special rule for assessing trustee under section 99A of the Income Tax Assessment Act 1936
115.230.Assessing capital gains of resident testamentary trusts

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

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
118.20. Reducing capital gains if amount otherwise assessable
118.21. Carried interests
118.22. Superannuation lump sums and employment termination payments
118.24. Depreciating assets and section 73BA depreciating assets
118.25. Trading stock
118.27. Division 230 financial arrangements
118.30. Film copyright
118.35. Research and development
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
118.80. Reduction of boat capital gain

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
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
118.150.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

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
118.410.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

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

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

Division 122--Roll-over for the disposal of assets to, or the creation of assets in, a wholly-owned company

122.1. What this Division is about

Subdivision 122-A--Disposal or creation of assets by an individual or trustee to a wholly-owned company

122.5. What this Subdivision is about
122.15. Disposal or creation of assets--wholly-owned company
122.20. What you receive for the trigger event
122.25. Other requirements to be satisfied
122.35. What if the company undertakes to discharge a liability (disposal case)
122.37. Rules for working out what a liability in respect of an asset is
122.40. Disposal of a CGT asset
122.45. Disposal of all the assets of a business
122.50. All assets acquired on or after 20 September 1985
122.55. All assets acquired before 20 September 1985
122.60. Assets acquired before and after 20 September 1985
122.65. Creation of asset
122.70. Consequences for the company (disposal case)
122.75. Consequences for the company (creation case)

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

122.120.What this Subdivision is about
122.125.Disposal or creation of assets--wholly-owned company
122.130.What the partners receive for the trigger event
122.135.Other requirements to be satisfied
122.140.What if the company undertakes to discharge a liability (disposal case)
122.145.Rules for working out what a liability in respect of an interest in an asset is
122.150.Capital gain or loss disregarded
122.155.Disposal of post-CGT or pre-CGT interests
122.160.Disposal of both post-CGT and pre-CGT interests
122.170.Capital gain or loss disregarded
122.175.Other consequences
122.180.All interests acquired on or after 20 September 1985
122.185.All interests acquired before 20 September 1985
122.190.Interests acquired before and after 20 September 1985
122.195.Creation of asset
122.200.Consequences for the company (disposal case)
122.205.Consequences for the company (creation case)

Division 124--Replacement-asset roll-overs

124.1. What this Division is about
124.5. How to find your way around this Division

Subdivision 124-A--General rules

124.10. Your ownership of one CGT asset ends
124.15. Your ownership of more than one CGT asset ends

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-G--Exchange of shares in one company for shares in another company

124.350.What this Subdivision is about
124.355.Summary of rules
124.360.Disposal of shares in one company for shares in another one
124.365.Other requirements to be satisfied
124.370.Redemption or cancellation of shares in one company for shares in another one
124.375.Other requirements to be satisfied
124.380.Requirements to be satisfied in both cases
124.382.Special rules for ADI restructures
124.385.Consequences for the interposed company
124.390.Deferral of profit or loss on shares

Subdivision 124-H--Exchange of units in a unit trust for shares in a company

124.435.What this Subdivision is about
124.440.Summary of rules
124.445.Disposal of units in a unit trust for shares in a company
124.450.Other requirements to be satisfied
124.455.Redemption or cancellation of units in a unit trust for shares in a company
124.460.Other requirements to be satisfied
124.465.Requirements to be satisfied in both cases
124.470.Consequences for the company

Subdivision 124-I--Conversion of a body to an incorporated company

124.520.Conversion of a body to an incorporated company

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
124.784.Cost base of equity or debt given by acquiring entity to ultimate holding company
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 by acquiring entity to ultimate holding company
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-O--FSR

124.880.Old licence roll-over (same owner)
124.885.Qualified licence roll-over (same owner)
124.890.Rights roll-over (same owner)
124.895.Consequences of a same owner roll-over
124.900.Old licence roll-over (new owner)
124.905.Qualified licence roll-over (new owner)
124.910.Rights roll-over (new owner)
124.915.Consequences of a new owner roll-over (where one CGT asset comes to an end)
124.920.Consequences of a new owner roll-over (where more than one CGT asset comes to an end)
124.925.Special extension of the 10 March 2004 cut-off date (same owner roll-overs)
124.930.Special extension of the 10 March 2004 cut-off date (new owner roll-overs)

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
124.1065.Certain foreign holders disregarded

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--Corporate unit trusts and public trading trusts

125.225.Guide to Subdivision 125-D
125.230.Application of Division to corporate unit trusts and public trading trusts

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
126.185.What this Subdivision is about
126.190.When there is a roll-over
126.195.Consequences of roll-over

Subdivision 126-F--Transfer of assets of superannuation funds to meet licensing requirements

126.200.What this Subdivision is about
126.205.Object of this Subdivision
126.210.When there is a roll-over and what its effects are

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

130.80. Share or right acquired under employee share scheme
130.83. Qualifying shares and qualifying rights
130.85. Share or right acquired under employee share scheme involving your associate
130.90. Share or right acquired under an employee share trust--beneficiary absolutely entitled
130.95. Share or right acquired under an employee share trust--100% takeover or restructure
130.97. Stapled securities

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

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
152.42. Trustee of discretionary trust may nominate beneficiaries to be controllers of trust
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
152.80. 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
152.120.Discretionary trusts need not have a significant individual in a loss year or nil income year
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

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 beneficial 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 the same business test

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.Meaning of expressions

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 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

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
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 or income 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
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
207.45. 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

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

Subdivision 207-D--does not apply to certain exempt institutions, trusts and life insurance companies as set out in this Subdivision. Such an entity may be entitled to a tax offset under this Subdivision in relation to a franked distribution.

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?
207.160.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 an eligible employee share scheme
208.210.Subsidiaries
208.215.Eligible employee share scheme

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 an eligible employee share scheme
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
214.50. Evidence

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
214.85. Evidence

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
214.130.Other later amendments
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
214.165.Security for payment of tax

Subdivision 214-E--Records, information and tax agents

214.170.What this Subdivision is about
214.175.Record keeping
214.180.Power of Commissioner to obtain information
214.185.Tax agents

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 its 100% subsidiaries
220.350.Providing for a franking credit to arise
220.400.Gross-up and tax offset for distribution from NZ franking company reduced by supplementary dividend
220.405.Franked distribution and supplementary dividend flowing indirectly
220.410.Franking credit reduced if tax offset reduced
220.500.Publicly listed post-choice NZ franking company and its 100% subsidiaries are not exempting entities
220.505.Post-choice NZ franking company is not automatically prescribed person
220.510.Parent company's status as prescribed person sets status of all other members of same wholly-owned group
220.605.Effect on exempting account if NZ franking choice ceases to be in force
220.700.Tax effect of distribution franked by NZ franking company with an exempting credit
220.800.Joint and several liability for NZ resident company's franking tax etc.

PART 3-10----FINANCIAL TRANSACTIONS

Division 230--Taxation of financial arrangements

230.1. What this Division is about
230.5. Scope of this Division

Subdivision 230-A--Core rules

230.10. Objects of this Division
230.15. Gains are assessable and losses deductible
230.20. Gain or loss to be taken into account only once under this Act
230.25. Associated financial benefits to be taken into account only once under this Act
230.30. Treatment of gains and losses related to exempt income and non-assessable non-exempt income
230.35. Treatment of gains and losses of private or domestic nature
230.40. Methods for taking gain or loss into account
230.45. Financial arrangement
230.50. Financial arrangement (equity interest or right or obligation in relation to equity interest)
230.55. Rights, obligations and arrangements (grouping and disaggregation rules)
230.60. When financial benefit provided or received under financial arrangement
230.65. Amount of financial benefit relating to more than one financial arrangement etc.
230.70. Apportionment when financial benefit received or right ceases
230.75. Apportionment when financial benefit provided or obligation ceases
230.80. Consistency in working out gains or losses (integrity measure)
230.85. Rights and obligations include contingent rights and obligations

Subdivision 230-B--The accruals

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
230.175.Running balancing adjustments
230.180.Realisation method
230.185.Reassessment
230.190.Re-estimation
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 financial hedging 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.Where requirements not met
230.385.You may be excluded from this Subdivision for deliberate failures to comply with 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.

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 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

Subdivision 230-J--Additional operation of Division

230.530.Additional operation of Division

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?
240.78. Termination amounts
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 finance charge

240.100.What this Subdivision is about
240.105.Adjustments for notional seller
240.110.Adjustments for notional buyer

Subdivision 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 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 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 3-30----SUPERANNUATION
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
290.160.Maximum earnings as employee 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 292--Excess contributions tax

292.1. What this Division is about

Subdivision 292-A--Object of this Division

292.5. Object of this Division

Subdivision 292-B--Excess concessional contributions tax

292.10. What this Subdivision is about
292.15. Liability for excess concessional contributions tax
292.20. Your excess concessional contributions for a financial year
292.25. Your concessional contributions for a financial year

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-D--Modifications for defined benefit interests

292.155.What this Subdivision is about
292.160.Application
292.165.Concessional contributions--special rules for defined benefit interests
292.170.Notional taxed contributions
292.175.Defined benefit interest

Subdivision 292-E--Excess contributions tax assessments

292.225.What this Subdivision is about
292.230.Commissioner must make an excess contributions tax assessment
292.235.Part-year assessment
292.240.Validity of assessment
292.245.Objections
292.250.Evidence

Subdivision 292-F--Amending excess 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 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 contributions tax
292.390.General interest charge
292.395.Refunds of amounts overpaid
292.400.Security for payment of tax
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
292.470.Power of Commissioner to obtain information

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
295.171.Exception--payments from FHSAs and Government FHSA contributions
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
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
295.390.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
295.410.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
295.485.Deductions for increased amount of superannuation lump sum death benefit
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

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

303.5. 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

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

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
306.15. 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-F--defines the concessional limits used in Division 301 known as the low rate cap amount and untaxed plan cap amount.

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

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?

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
307.300.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

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/FHSA 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/FHSA 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/FHSA 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
320.107.Deductions for increased amount of lump sum death benefit
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/FHSA assets or segregated exempt assets
320.125.Capital losses from complying superannuation/FHSA 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/FHSA class
320.139.Taxable income--ordinary class
320.141.Tax loss--complying superannuation/FHSA 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

320.165.What this Subdivision is about
320.170.Establishment of complying superannuation/FHSA asset pool
320.175.Valuations of complying superannuation/FHSA assets and complying superannuation/FHSA liabilities for each valuation time
320.180.Consequences of a valuation under section 320-175
320.185.Transfer of assets to complying superannuation/FHSA asset pool otherwise than as a result of a valuation under section 320-175
320.190.Complying superannuation/FHSA liabilities
320.195.Transfer of assets and payment of amounts from a complying superannuation/FHSA 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/FHSA 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/FHSA 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 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.Low cost assets
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 [see Note 6]
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

Division 345--FHSAs

345.1. What this Division is about

Subdivision 345-A--Treatment of FHSA providers

345.5. FHSA provider that is trustee of FHSA trust--tax payable
345.10. FHSA provider that is trustee of FHSA trust--CGT to be primary code for calculating gains or losses
345.15. FHSA provider that is an ADI (other than RSA provider)--taxable income and standard component of taxable income
345.20. FHSA provider that is an ADI--FHSA component of taxable income
345.25. FHSA provider that is an ADI (other than an RSA provider)--amounts that cannot be deducted
345.30. Amounts of tax paid by FHSA providers that are ADIs

Subdivision 345-B--Treatment of FHSA holders

345.50. Credits to and payments from FHSAs etc.

Subdivision 345-C--FHSA misuse tax

345.100.Liability for FHSA misuse tax
345.110.Due date for payment of FHSA misuse tax
345.115.General interest charge

Division 375--Australian films

Subdivision 375-G--Film losses

375.800.What this Subdivision is about
375.805.Does your tax loss have a film component?
375.810.What is a film loss?
375.815.Deductibility of film losses
375.820.Order in which tax losses are to be deducted

Subdivision 375-H--Deductions for shares in a film licensed investment company

375.850.What this Subdivision is about
375.855.What can you deduct?
375.860.When can you claim the deduction?
375.865.How can you lose your entitlement?
375.870.How this Subdivision applies to partners and partnerships
375.872.Distribution of FLIC concessional capital is instead taken to be a dividend
375.875.Tax losses cannot be transferred to or from FLICs
375.880.FLIC cannot claim deductions for concessional capital

Division 376--Films generally

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. Company may nominate one individual whose remuneration is to be disregarded for the location offset
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

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. Claims by a party to a non-entity joint venture
380.15. Claims by certain entities to whom NRAS rent flows indirectly
380.20. Claims by a 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

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
392.25. 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 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 396--Land transport facilities borrowings

396.5. What this Division is about

Subdivision 396-A--Key operative provisions

396.10. What this Subdivision is about
396.15. Tax offset for LTF interest on land transport facilities borrowings
396.20. Maximum cost to Commonwealth
396.25. Borrower cannot deduct LTF interest for which lender has tax offset

Subdivision 396-B--What LTF interest is covered

396.30. What is LTF interest?
396.35. Interest covered by land transport facilities borrowings agreement
396.40. Interest ceasing to be covered by a land transport facilities borrowings agreement

Subdivision 396-C--Projects, borrowers and lenders

396.45. What projects can be approved?
396.50. Who can be approved as a borrower?
396.55. Who can be a lender?

Subdivision 396-D--Application, approval and agreement process

396.60. Applications
396.65. Minister or Commissioner may seek more information
396.70. Transport Minister to consider applications
396.75. Selection criteria
396.80. Land transport facilities borrowings agreements
396.85. Conditions to be in all agreements
396.90. Variation of agreements

Subdivision 396-E--Miscellaneous

396.95. Provision of information
396.100.Publication of information about approvals and agreements
396.105.Delegation by Transport Minister
396.110.Decision by Transport Minister not reviewable by AAT

Division 402--Environment protection expenditure

402.1. What this Division is about

Subdivision 402-W--Urban water tax offset

402.750.What this Subdivision is about
402.755.Entitlement to urban water tax offset
402.760.Certificates
402.765.Amount of urban water tax offset
402.770.Revoking certificates
402.775.AAT review
402.780.Guidelines

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 collecting societies

410.1. What this Division is about
410.5. Copyright collecting society must give a notice to a member of the society

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

Subdivision 716-A--(about assessable income and deductions spread over several membership or non-membership periods); and

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
701.58. 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
701.65. Net income and losses for trusts and partnerships
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
703.60. Notice of events affecting consolidated group
703.65. Application
703.70. Consolidated group continues in existence with interposed company as head company and original company as a subsidiary member
703.75. Interposed company treated as substituted for original company at all times before the completion time
703.80. Effects on the original company'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
705.30. 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
705.45. Reduction in tax cost setting amount for accelerated depreciation assets
705.47. Reduction in tax cost setting amount for some privatised assets
705.50. Reduction in tax cost setting amount for over-depreciated assets
705.55. Order of application of sections 705-40, 705-45, 705-47 and 705-50
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?
705.65. 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--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 factor for assets of 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
705.150.Adjustment to result of step 3A in working out allocable cost amount where pre-formation time roll-over from head company to member of wholly-owned group
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
705.165.Working out pre-CGT factors where subsidiary members have membership interests in other subsidiary members

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
705.190.Modified application of section 705-50
705.195.Modified application of subsection 705-65(6)
705.200.Modified application of section 705-85
705.205.Modified application of section 705-125

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
705.245.Working out pre-CGT factors where subsidiary members have membership interests in other subsidiary members

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 previously unutilised 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 assets that the leaving entity takes with it--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--simple case
711.70. Membership interests treated as having been acquired before 20 September 1985--multiple exit case

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
713.230.Reduction in allocable cost amount if partnership asset is over-depreciated
713.235.Partnership joins group--set tax cost of partnership assets
713.240.Partnership joins group--tax cost setting amount for partnership asset
713.245.Partnership joins group-- pre-CGT factor 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 leaving partner's allocable cost amount
713.270.Partnership leaves group--certain partnership cost setting interests treated as having been acquired before 20 September 1985

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
713.511.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/FHSA 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
713.553.Special rules relating to segregated exempt assets
713.555.Transfer from segregated exempt assets because policyholder and life insurance company are in group
713.560.If valuation of segregated exempt assets is delayed
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

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

Subdivision 165-CC--does not apply to the company in relation to a *changeover time that happened before the membership time, except for the purposes of section 715-30 (which defines 165-CC tagged asset).

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 ch