Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The * total net forgiven amount (if any) remaining after being applied under sections 245- 115 and 245-130 is applied, to the maximum extent possible, in reduction, in accordance with sections 245-150, 245- 155 and 245-157, of your expenditure that:
(a) is mentioned in the following table (other than expenditure covered by subsection (2)) and was incurred by you before the * forgiveness income year; and
(b) apart from this Subdivision, could be deducted by you for the forgiveness income year or a later income year if no event or circumstance (other than a * recoupment of the expenditure by you in the forgiveness income year) occurred that would affect its deductibility.
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Table of expenditure |
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Item |
Column 1 General description of expenditure |
Column 2 Provision under which a deduction is available for the expenditure |
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1 |
Expenditure deductible under Division 40 (Capital allowances) |
Division 40 of this Act |
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2 |
Expenditure incurred in * borrowing money to produce assessable income |
Section 25- 25 of this Act |
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3 |
Expenditure on scientific research |
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4 |
Expenditure deductible under Division 355 (R&D) |
Division 355 of this Act |
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5 |
Advance revenue expenditure |
Subdivision H of Division 3 of Part III of the Income Tax Assessment Act 1936 |
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6 |
Expenditure on acquiring a unit of industrial property to produce assessable income |
Subsection 124M(1) of the Income Tax Assessment Act 1936 |
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7 |
Expenditure on Australian films |
Section 124ZAFA of the Income Tax Assessment Act 1936 |
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8 |
Expenditure on assessable income-producing buildings and other capital works |
Section 43-10 of this Act |
Note: If the asset to which the expenditure relates was disposed of, lost or destroyed before 28 June 1996 or the expenditure was recouped before 28 June 1996, see section 245-10 of the Income Tax (Transitional Provisions) Act 1997 .
(2) Expenditure is covered by this subsection if:
(a) it was incurred in respect of an asset you * disposed of to an entity that you dealt with at * arm's length in respect of the disposal; and
(b) the disposal occurred during the * forgiveness income year before the * forgiveness of any debt owed by you, and the forgiveness resulted in a * net forgiven amount; and
(c) no provision of this Act includes an amount in your assessable income, or allows you a deduction, as a result of the disposal.