INCOME TAX ASSESSMENT ACT 1997 - SECT 253.15 Cost base of financial claims scheme entitlement and any remaining part of account that gave rise to entitlement
INCOME TAX ASSESSMENT ACT 1997 - SECT 253.15
Cost base of financial claims scheme entitlement and any remaining part of account that gave rise to entitlement(1) This section applies if an entitlement arises under Division 2AA (Financial claims scheme for account - holders with insolvent ADIs) of Part II of the Banking Act 1959 in connection with an account - holder's account with an * ADI.
(2) The * cost base and * reduced cost base of the * CGT asset consisting of the entitlement are each the amount of the entitlement.
(3) The * cost base of the * CGT asset representing the part (if any) of the account - holder's right to be paid an amount by the * ADI in connection with the account that remains after the reduction of that right by section 16AI of the Banking Act 1959 (by the amount of the entitlement) is the difference (if any) between:
(a) the cost base of the right as it was immediately before the reduction; and
(b) the amount of the entitlement.
The * reduced cost base is worked out similarly.
(4) This section has effect despite:
(a) Division 110 (Cost base and reduced cost base); and
(b) subsections 112 - 30(2), (3), (4) and (5) (which are about apportioning a * cost base if a * CGT event happens to only part of a * CGT asset).
Generally, a corporate tax entity that is an Australian resident at the time a distribution is made, can frank the distribution.
There are some exceptions.
Generally, distributions that are made out of realised profits can be franked.
Those distributions that are not frankable are identified.
The amount of the franking credit on a distribution is that stated in the distribution statement, unless the amount stated exceeds the maximum franking credit for the distribution.
In that case, the amount of the franking credit on the distribution is taken to be the maximum franking credit for the distribution, worked out under this Subdivision.
This Division:
• creates a franking account for each entity that is, or has been, a corporate tax entity; and
• identifies when franking credits and debits arise in those accounts and the amount of those credits and debits; and
• identifies when there is a franking surplus or deficit in the account; and
• creates a liability to pay franking deficit tax if the account is in deficit at certain times; and
• creates a tax offset for that liability.
Method statement
Step 1. Identify any income years ending before the payment was made for which the entity has * received a refund of income tax.
Step 2. Add up the part (if any) of each of those refunds that is attributable to a * tax offset that is subject to the refundable tax offset rules because of section 67 - 30 (about R&D).
Step 3. Subtract any reduction under this subsection of a * franking credit for any earlier payment by the entity. (For this purpose, assume a credit reduced to zero is still a franking credit.)
Method statement
Step 1. Work out the total amount of * franking deficit tax that is covered by paragraph (1)(a).
Then, subject to subsections (5) and (6), reduce so much of it as is attributable to * franking debits to which subsection (8) applies by 30% if that part exceeds 10% of the total amount of * franking credits that arose in the entity's * franking account for the relevant year.
Step 2. Work out the total amount of * franking deficit tax that is covered by paragraph (1)(b) for a previous income year.
Then, subject to subsections (5) and (6), reduce so much of it as is attributable to * franking debits to which subsection (8) applies by 30% if that part exceeds 10% of the total amount of * franking credits that arose in the entity's * franking account for that previous income year.
Step 3. Add up the results of step 2 for all the previous income years covered by paragraph (1)(b).
Step 4. Work out the remaining amount of a * tax offset covered by paragraph (1)(c).
Step 5. Add up the results of steps 1, 3 and 4. The result is the * tax offset to which the entity is entitled under this section for the relevant year.
As a general rule, if a member of an entity receives a franked distribution:
• an amount equal to the franking credit on the distribution is included in the member's assessable income; and
• the member is entitled to a tax offset equal to the franking credit on the distribution.
(a) the distribution is made to a partnership or the trustee of a trust; and
(b) the benefit is received either directly or through other interposed partnerships or trusts.
The distribution is regarded as flowing indirectly to the entity under this Subdivision.
On the basis of a notional amount of the entity's share of the distribution, the entity may be entitled to have an amount included in its assessable income and/or a tax offset under this Subdivision.
This Subdivision:
• creates an exempting account for each former exempting entity; and
• identifies when exempting credits and debits arise in those accounts and the amount of those credits and debits; and
• identifies when there is an exempting surplus or deficit in the account; and
• identifies when franking credits and debits arise in the franking account of an entity because it is an exempting entity, or former exempting entity.
Generally, a franked distribution from an exempting entity will only generate a tax effect for the recipient under Division 207 if the recipient is also an exempting entity.
A concession is made to employees of the entity who receive a franked distribution because they hold shares acquired under an eligible employee share scheme.
The amount of the venture capital credit on a distribution is that stated in the distribution statement, unless the amount exceeds the franking credit on the distribution.
In that case, the amount of the venture capital credit on the distribution is taken to be the same as the franking credit.
This Subdivision:
• creates a venture capital sub - account for each PDF; and
• identifies when venture capital credits and debits arise in the sub - account and the amount of those credits and debits; and
• identifies when there is a venture capital surplus or deficit in the sub - account; and
• creates a liability to pay venture capital deficit tax if the account is in deficit at certain times.
Method statement
Step 1. Work out the part of the company's total * income tax liability for the income year that is attributable to the company's shareholders.
The result of this step is the shareholders' share of the income tax liability of the company for the income year.
Step 2. Divide the step 1 result by that total * income tax liability.
The result of this step is the shareholders' ratio for the income year.
Step 3. Multiply the amount of the payment or refund by the * shareholders' ratio.
The result of this step is the part of the payment or refund that is attributable to the * shareholders' share of the * income tax liability of the company for the income year.
Method statement
Step 1. Work out the remainder (if any) of the part of the company's basic income tax liability mentioned in subsection 219 - 70(1) after the * tax offset is applied to reduce that part.
Note: The part mentioned in that subsection is the part of an amount of the company's income tax liability for the income year that is attributable to its shareholders.
Step 2. Divide the step 1 result by the company's total * income tax liability for the income year (after applying the * tax offset).
The result (which can be nil) is the company's revised shareholders' ratio for the income year.
(a) other companies that are members of the same wholly - owned group; or
(b) entities that receive distributions from the company resident in New Zealand.
This Division is about the tax treatment of gains and losses from your financial arrangements.
You recognise the gains and losses, as appropriate, over the life of a financial arrangement and ignore distinctions between income and capital unless specific rules apply.
If it is sufficiently certain that you will make a gain or loss, you use a compounding accruals method to recognise the gain or loss. Otherwise you use a realisation method. Instead of either, you may be able to choose to use a fair value or hedging method or to rely on your financial reports. You may also be able to choose to recognise foreign exchange gains and losses using a retranslation method.
This Subdivision applies the accruals method to determine the amount and timing of gains and losses from a financial arrangement if they are sufficiently certain for such accrual to be done.
This Subdivision applies the realisation method to determine the amount and timing of gains and losses if they are not sufficiently certain to be dealt with under the accruals method.
If the accruals method is applied to a gain or loss on the basis of an estimate of a financial benefit and the benefit when received or provided is more or less than the estimate, a balancing adjustment is made to correct for the underestimate or overestimate.
If the accruals method is being applied to gains and losses from the arrangement and there is a material change to the arrangement, or the circumstances in which it operates, a reassessment is made of whether the accruals method or the realisation method should apply to gains and losses from the arrangement.
A change in circumstances may also cause a re - estimation of gains and losses that the accruals method is being applied to.
Method statement for balancing adjustment
Step 1. Add up the following:
(a) the total of all the * financial benefits you have received under the * financial arrangement;
Note: This would include financial benefits you receive in relation to the transfer or cessation (see paragraph 230 - 60(2)(c)).
(b) the total of the amounts that have been allowed to you as deductions, because of circumstances that have occurred before the transfer or cessation, for losses from the arrangement;
(c) the total of the other amounts that would have been allowed to you as deductions, because of circumstances that have occurred before the transfer or cessation, for losses from the arrangement if all your losses from the arrangement were allowable as deductions;
Note: The losses from the arrangement here include losses made in gaining or producing exempt income or non - assessable non - exempt income.
(d) the total of the amounts that will be allowed to you as deductions after the transfer or cessation because of a balancing adjustment under subitems 104(12) to (18) of the Tax Laws Amendment (Taxation of Financial Arrangements) Act 2009 to the extent to which those amounts are attributable to the arrangement;
(e) the total of the amounts that will be allowed to you as deductions after the transfer or cessation because of sections 230 - 160 and 230 - 165 to the extent to which those amounts are attributable to the arrangement.
Step 2. Add up the following:
(a) the total of all the * financial benefits you have provided under the * financial arrangement;
Note: This would include financial benefits you provide in relation to the transfer or cessation (see paragraph 230 - 60(1)(c)).
(b) the total of the amounts that have been included in your assessable income, because of circumstances that have occurred before the transfer or cessation, as gains from the arrangement;
(c) the total of the other amounts that would have been included in your assessable income, because of circumstances that have occurred before the transfer or cessation, as gains from the arrangement if all your gains from the arrangement were assessable;
Note: The gains from the arrangement here include amounts of exempt income or non - assessable non - exempt income.
(d) the total of the amounts that will be included in your assessable income after the transfer or cessation because of a balancing adjustment under subitems 104(12) to (18) of the Tax Laws Amendment (Taxation of Financial Arrangements) Act 2009 to the extent to which those amounts are attributable to the arrangement.
(e) the total of the amounts that will be included in your assessable income after the transfer or cessation because of sections 230 - 160 and 230 - 165 to the extent to which those amounts are attributable to the arrangement.
Step 3. Compare the amount obtained under step 1 (the step 1 amount ) with the amount obtained under step 2 (the step 2 amount ). If the step 1 amount exceeds the step 2 amount, an amount equal to the excess is taken, as a balancing adjustment, to be a gain you make from the * financial arrangement for the purposes of this Division. If the step 2 amount exceeds the step 1 amount, an amount equal to the excess is taken, as a balancing adjustment, to be a loss that you make from the arrangement. If the step 1 amount and the step 2 amount are equal, no balancing adjustment is made.
An entity that invests in an asset through an instalment warrant, instalment receipt, or other similar arrangement, is treated for most income tax purposes as if it had invested in the asset directly.
A regulated superannuation fund that invests in an asset through a limited recourse borrowing is treated in the same way.
This Subdivision provides for the inclusion in the notional seller's assessable income of:
(a) amounts (notional interest) on account of the interest for the notional loan that the notional seller is taken to have made to the notional buyer; and
(b) any profit made by the notional seller:
(i) on the notional sale of the property to the notional buyer; or
(ii) on a sale of the property after any notional re - acquisition of the property by the notional seller.
Calculating * notional interest
Step 1. Add the * notional interest from previous * arrangement payment periods to the notional loan principal.
Step 2. Subtract any * arrangement payments that have already been made or that are due but that have not been made. The result is the outstanding notional loan principal as at the start of the * arrangement payment period.
Step 3. Work out the implicit interest rate for the * arrangement payment period, taking into account the * arrangement payments payable by the * notional buyer under the * arrangement and any * termination amounts.
Step 4. Multiply the outstanding notional loan principal by the implicit interest rate. The result is the notional interest for the * arrangement payment period.
A luxury car is one whose market value exceeds the car limit set for a car's capital allowance deductions by section 40 - 230.
If the lessor of a luxury car is tax exempt, or taxed at a lower rate than the lessee, the lease could be structured to give both parties a better after - tax outcome than if the lessee had bought the car. The lessee could fully deduct the lease payments, thereby avoiding the capital allowance limit for luxury cars, and the lessor would receive higher lease payments.
This Division removes the tax benefit for the lessee by putting both parties in the same position as if the lessor had sold the car to the lessee and lent the lessee the purchase price.
The lessor's assessable income includes the interest on the notional loan.
The lease payments to the lessor are non - assessable non - exempt income.
Note: If the consideration for a notional sale of a car exceeds the adjustable value of the car to the lessor, the excess will be included in the lessor's assessable income under section 40 - 285.
There would be a similar result if the lessor is treated as having reacquired the car and then sells the car for more than the cost of reacquisition.
When a luxury car lease is extended, renewed or ends, the overall nominal gain to the lessor is compared to the nominal interest so far paid under the lease.
If the overall nominal gain is greater, the difference is assessable income of the lessor, and the lessee may be able to deduct it.
If the overall nominal gain is less, the lessor can deduct the difference, which may also be assessable income of the lessee.
This process ensures that the right amount has been taxed over the term of the lease.
(a) if the lease is extended or renewed--the original notional loan is treated as having been repaid and the lessor is treated as having made a new loan to the lessee; or
(b) if the lessee acquires the car from the lessor--the lessee continues to own the car for tax purposes, and the actual transfer and the termination payment to acquire the car are ignored for tax purposes; or
(c) if the lessee's right to use the car ends--the lessee is treated as having sold the car back to the lessor.
This Division tells you when you must include an additional amount in your assessable income at the termination of a limited recourse debt arrangement. It also tells you what the additional amount is.
Basically, the Division applies where the capital allowance deductions that have been obtained for expenditure that is funded by the debt and the deductions are excessive having regard to the amount of the debt that was repaid.
The reason for the adjustment is to ensure that, where you have not been fully at risk in relation to an amount of expenditure, you do not get a net deduction if you fail to pay that amount.
Working out the total net capital allowance deductions
Step 1. Add up all of the debtor's * capital allowance deductions in respect of the expenditure or the * financed property (including deductions because of balancing adjustments) for the income year in which the termination occurs or an earlier income year.
Note: The amount of a capital allowance deduction may be reduced under section 707 - 415.
Step 2. Deduct from that any amount that is included in the assessable income of the debtor of any income year by virtue of a provision of this Act (other than this Division) as a result of the disposal of the * financed property the effect of which is to reverse a deduction covered by Step 1.
Step 3. Deduct from the result an amount equal to the sum of any amounts included in the entity's assessable income as a result of an earlier application of this Division to the debt.
Step 4. Add to the result an amount equal to the sum of any deductions to which the entity is entitled under section 243 - 45 (repayments of the original debt after termination) or 243 - 50 (repayments of the replacement debt) because of payments in respect of the debt.
Working out the total net capital allowance deductions that would otherwise be allowable
Work out the amount that would be worked out under subsection (2) if the deductions and the amounts included in assessable income had been calculated using the following assumptions:
(1) The original expenditure in respect of which deductions were calculated was reduced by the amount of the debt that was unpaid by the debtor when the debt was terminated. (In calculating the amount unpaid the following are to be disregarded:
(a) any reduction in the amount as a result of the * financed property being surrendered or returned to the creditor at the termination of the debt;
(b) any reduction in the amount to the extent that it is funded directly or indirectly by * non - arm's length limited recourse debt or by the consideration for the disposal of the debtor's interest in the financed property.)
(2) Deductions for income years after the income year in which the termination occurred were also taken into account.
(3) The original expenditure in respect of which deductions were calculated was increased by any amount that is paid by the debtor as consideration for another person assuming a liability under the debt. (This assumption does not apply to the extent that the consideration is funded directly or indirectly by * non - arm's length limited recourse debt or by the consideration for the disposal of the debtor's interest in the * financed property.)
(4) Step 2 were omitted from subsection (2).
Working out the amount of the deduction
Step 1. Work out the amount that would be worked out under subsection 243 - 35(2) if the debt were terminated immediately before the payment.
Step 2. Work out the amount that would have been worked out under subsection 243 - 35(4) at that time if the payment had been taken into account.
Step 3. The amount of the deduction is the amount (if any) by which the amount worked out under Step 2 exceeds the amount worked out under Step 1.
Working out the amount of the deduction
Step 1. Work out the amount that would be worked out under subsection 243 - 35(2) if the replacement debt were terminated immediately before the payment.
Step 2. Work out the amount that would have been worked out under subsection 243 - 35(4) at that time if the payment had been made in respect of the original debt and it had been taken into account.
Step 3. The amount of the deduction is the amount (if any) by which the amount worked out under Step 2 exceeds the amount worked out under Step 1.
Assumptions to be applied
(1) That the debt was terminated at the time, or at the end of the period, referred to in subsection (1) of this section.
(2) That the amount unpaid at the time, or at the end of the period, is reduced by any amounts paid under a replacement debt.
(3) The debtor's * capital allowance deductions in respect of the expenditure or the * financed property were increased by the amount of the capital allowance deduction referred to in subsection (1) of this section.
Assumptions to be applied
(1) That the debt was terminated at the time of the disposal of the * financed property, referred to in subsection (1) of this section.
(2) The amount in Step 2 in subsection 243 - 35(2) were increased by the amount that would otherwise be included in the debtor's assessable income.
(3) The amount worked out under subsection 243 - 35(4) were reduced by any amount by which:
(a) the amount arising as a result of the disposal that is taken into account for the purposes of the provision mentioned in subsection (1);
exceeds:
(b) the unpaid amount of the debt immediately before the time of the disposal of the * financed property, referred to in subsection (1).
Working out the amount included
Step 1. Work out which income years the partner was a member of the partnership and the partnership was entitled to a * capital allowance deduction in respect of the expenditure or the * financed property (including deductions because of balancing adjustments).
Step 2. For each of those income years, work out the proportion of net income of the partnership or the partnership loss (as the case requires) that was included in the assessable income of the partner or which the partner could deduct.
Step 3. For each of those income years, multiply the * capital allowance deductions in respect of the expenditure or the * financed property (including deductions because of balancing adjustments) of the partnership by the corresponding proportion worked out under Step 2. Sum all of the amounts.
Step 4. Divide the sum by the total of the * capital allowance deductions in respect of the expenditure or the * financed property (including deductions because of balancing adjustments) of the partnership for all of those income years.
Step 5. Work out the amount that would have been included in the partnership's assessable income under section 243 - 40 if the debt had been terminated and remained unpaid and this section had not applied.
Step 6. Multiply the amount worked out in Step 5 by the factor worked out in Step 4. The result is the amount to be included in the partner's assessable income.
(a) your tax losses and net capital losses; and
(b) capital allowances and some similar deductions; and
(c) the cost bases of your CGT assets.
A debt is forgiven if you no longer have to pay it.
However, this Division does not apply to some cases of forgiveness, such as bankruptcy.
(a) the value of the debt when it was forgiven is worked out on the basis that you were solvent both then and when you incurred the debt; and
(b) the value of the debt is then offset by any consideration given for the forgiveness of the debt.
The difference between the value of the debt and the amount offset is the gross forgiven amount.
If the debt was owed by several debtors, the gross forgiven amount is divided between them equally .
The net forgiven amount of a debt is worked out by subtracting, from the gross forgiven amount of the debt, any amount that this Act already takes into account for the debtor because the debt was forgiven (for example, if some part of the forgiven amount is treated as the debtor's ordinary income).
If the debtor and creditor were companies under common ownership, they may agree to transfer some of the net forgiven amount from the debtor to the creditor. The creditor must apply that amount to reduce the capital loss or deduction it has because of the forgiveness.
(a) to your tax losses from previous income years;
(b) to your net capital losses from previous income years;
(c) to the deductions you would otherwise get in the income year, or in a later income year, because of expenditure from a previous year (for example, the capital allowance deductions you would get for expenditure on acquiring a depreciating asset);
(d) to the cost bases of your CGT assets.
You can choose the order in which the net forgiven amounts reduce the amounts within each class.
If all the amounts in the 4 classes are reduced to nil, any remaining net forgiven amounts are disregarded.
Capital protection provided under a relevant capital protected borrowing to the extent that it is not provided by an explicit put option is treated (for the borrower) as if it were a put option.
An amount attributable to capital protection under any relevant capital protected borrowing is treated (for the borrower) as a payment for a put option.
Method statement
Step 1. Work out the total amount incurred by the borrower under or in respect of the * capital protected borrowing for the income year, ignoring amounts that are not in substance for * capital protection or interest.
Step 2. Work out the total interest that would have been incurred for the income year on a * borrowing or provision of credit of the same amount as under the * capital protected borrowing at the rate applicable under either or both of subsections (4) and (5A).
Step 3. If the step 1 amount exceeds the step 2 amount, the excess is reasonably attributable to the * capital protection for the income year.
This Division denies or reduces certain capital allowance deductions that would otherwise be available to you in relation to an asset if the asset is put to a tax preferred use in certain circumstances.
If the capital allowance deductions are denied or reduced, certain financial benefits in relation to the tax preferred use of the asset are assessed only to the extent of a notional gain component. This component is worked out on the basis of treating the arrangements under which the asset is put to a tax preferred use, and financial benefits are provided in relation to that tax preferred use, as a loan. Subdivision 250 - E then applies to determine the amounts that are to be assessed.
Method statement
Step 1. Add up the present values of the amounts that would be included in your assessable income in relation to the * financial benefits * provided in relation to the tax preferred use of the asset during the * arrangement period if this Division did not apply to you and the asset.
Step 2. Add up the present values of the amounts that you would be able to deduct in relation to the asset, or expenditure in relation to the asset, under Division 40 or Division 43 in relation to the * arrangement period if this Division did not apply to you and the asset.
Step 3. Deduct the amount obtained in Step 2 from the amount obtained in Step 1. The result is the alternative assessable amount .
This Subdivision is about the tax treatment of gains and losses from the financial arrangement that you are taken to have under section 250 - 155.
You recognise gains and losses from the financial arrangement, as appropriate, over the life of the financial arrangement and ignore distinctions between income and capital. You use a compounding accruals method to recognise the gain or loss.
A change in circumstances may cause a re - estimation of gains and losses that the accruals method is being applied to.
A balancing adjustment is made if you transfer particular rights or obligations or particular rights or obligations cease.
Method statement for balancing adjustment
Step 1. Add up the following:
(a) the total of all the * financial benefits provided to you under the * financial arrangement;
(b) the amount or value of any other consideration you receive in relation to the transfer or cessation referred to in subsection 250 - 265(1);
(c) the total of the amounts that have been allowed to you as deductions, because of circumstances that have occurred before the transfer or cessation, for losses from the arrangement;
(d) the total of the other amounts that would have been allowed to you as deductions, because of circumstances that have occurred before the transfer or cessation, for losses from the arrangement if all your losses from the arrangement were allowable as deductions.
Step 2. Add up the following:
(a) the total of all the * financial benefits you have provided under the * financial arrangement;
(b) the amount or value of any other consideration you provide in relation to the transfer or cessation referred to in subsection 250 - 265(1);
(c) the total of the amounts that have been included in your assessable income, because of circumstances that have occurred before the transfer or cessation, as gains from the arrangement;
(d) the total of the other amounts that would have been included in your assessable income, because of circumstances that have occurred before the transfer or cessation, as gains from the arrangement if all your gains from the arrangement were assessable.
Step 3. Compare the amount obtained under Step 1 (the Step 1 amount ) with the amount obtained under Step 2 (the Step 2 amount ). If the Step 1 amount exceeds the Step 2 amount, an amount equal to the excess is taken, as a balancing adjustment, to be a gain you make from the * financial arrangement for the purposes of this Subdivision. If the Step 2 amount exceeds the Step 1 amount, an amount equal to the excess is taken, as a balancing adjustment, to be a loss that you make from the arrangement. If the Step 1 amount and the Step 2 amount are equal, no balancing adjustment is made.
Method statement
Step 1. Work out whether section 250 - 150 applies.
Step 2. If section 250 - 150 does not apply, the amount is the * end value of the asset at the end of the arrangement period.
Step 3. If section 250 - 150 does apply, the amount is worked out by:
(a) multiplying the * end value of the asset at the end of the * arrangement period by the * disallowed capital percentage; and
(b) then multiplying the adjustable value of the asset at the end of the arrangement period (worked out under section 40 - 85) by 100% minus the disallowed capital percentage); and
(c) then adding the amount obtained under paragraph (a) and the amount obtained under paragraph (b).
This Act applies to a payment of an entitlement under Division 2AA (Financial claims scheme for account - holders with insolvent ADIs) of Part II of the Banking Act 1959 as if the payment were made by the ADI under the agreement for the account concerned.
Special rules prevent the arising and payment of such an entitlement from creating inappropriate capital gains or losses affecting assessable income.
Income Tax Assessment Act 1997
No. 38, 1997
Compilation No. 248
Compilation date: 1 January 2024
Includes amendments: Act No. 40, 2023, Act No. 61, 2023, Act No. 69, 2023, Act No. 101, 2023 and Act No. 103, 2023
Registered: 15 January 2024
This compilation is in 12 volumes
Volume 1: sections 1 - 1 to 36 12 pt">- 55
Volume 2: sections 40 - 1 to 67 - 30
Volume 3: sections 70 - 1 to 121 12 pt">- 35
Volume 4: sections 122 - 1 to 197 12 pt">- 85
Volume 5: sections 200 - 1 to 253 - 15
Volume 6: sections 275 - 1 to 313 12 pt; font-weight:bold">- 85
Volume 7: sections 315 - 1 to 420 - 70
Volume 8: sections 615 - 1 to 721 - 40
Volume 9: sections 723 - 1 to 880 12p t">- 205
Volume 10: sections 900 - 1 to 995 - 1
Volume 11: Endnotes 1 to 3
Volume 12: Endnote 4
Each volume has its own contents
About this compilation
This compilation
This is a compilation of the Income Tax Assessment Act 1997 that shows the text of the law as amended and in force on 1 January 2024 (the compilation date ).
The notes at the end of this compilation (the endnotes ) include information about amending laws and the amendment history of provisions of the compiled law.
Uncommenced amendments
The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.
Application, saving and transitional provisions for provisions and amendments
If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.
Editorial changes
For more information about any editorial changes made in this compilation, see the endnotes.
Modifications
If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.
Self - repealing provisions
If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.
Chapter 3--Specialist liability rules
Part 3 - 25--Particular kinds of trusts
Division 275--Australian managed investment trusts: general
Guide to Division 275 1
275 - 1 What this Division is about
Subdivision 275 - A--Meaning of managed investment trust
Guide to Subdivision 275 - A
275 - 5 What this Subdivision is about
275 - 10 Meaning of managed investment trust
275 - 15 Trusts with wholesale membership
275 - 20 Widely - held requirements--ordinary case
275 - 25 Widely - held requirements for registered MIT--special case for entities covered by subsection 275 - 20(4)
275 - 30 Closely - held restrictions
275 - 35 Licensing requirements for unregistered MIS
275 - 40 MIT participation interest
275 - 45 Meaning of managed investment trust --every member of trust is a managed investment trust etc.
275 - 50 Extended definition of managed investment trust --no fund payment made in relation to the income year
275 - 55 Extended definition of managed investment trust --temporary circumstances outside the control of the trustee
Subdivision 275 - B--Choice for capital treatment of managed investment trust gains and losses
275 - 100 Consequences of making choice--CGT to be primary code for calculating MIT gains or losses
275 - 110 MIT not to be trading trust
275 - 120 Consequences of not making choice--revenue account treatment
Subdivision 275 - C--Carried interests in managed investment trusts
275 - 200 Gains and losses etc. from carried interests in managed investment trusts reflected in assessable income or deduction
Subdivision 275 - L--Modification for non - arm's length income
Guide to Subdivision 275 - L
275 - 600 What this Subdivision is about
275 - 605 Trustee taxed on amount of non - arm's length income of managed investment trust
275 - 610 Non - arm's length income
275 - 615 Commissioner's determination in relation to amount of non - arm's length income
Division 276--Australian managed investment trusts: attribution managed investment trusts
Guide to Division 276 30
276 - 1 What this Division is about
Subdivision 276 - A--What is an attribution managed investment trust?
Guide to Subdivision 276 - A
276 - 5 What this Subdivision is about
276 - 10 Meaning of attribution managed investment trust (or AMIT )
276 - 15 Clearly defined interests
276 - 20 Trust with classes of membership interests--each class treated as separate AMIT
Subdivision 276 - B--Member's vested and indefeasible interest in share of income and capital of AMIT
Guide to Subdivision 276 - B
276 - 50 What this Subdivision is about
276 - 55 AMIT taken to be fixed trust and member taken to have vested and indefeasible interest in income and capital
Subdivision 276 - C--Taxation etc. of member components
Guide to Subdivision 276 - C
276 - 75 What this Subdivision is about
Taxation etc. of member on determined member components
276 - 80 Member's assessable income or tax offsets for determined member components--general rules
276 - 85 Member's assessable income or tax offsets for determined member components--specific rules
276 - 90 Commissioner's determination as to status of member as qualified person
276 - 95 Relationship between section 276 - 80 and withholding rules
276 - 100 Relationship between section 276 - 80 and other charging provisions in this Act
Foreign resident members--taxation of trustee and corresponding tax offset for members
276 - 105 Trustee taxed on foreign resident's determined member components
276 - 110 Refundable tax offset for foreign resident member--member that is not a trustee
Special rule for interposed custodian
276 - 115 Custodian interposed between AMIT and member
Subdivision 276 - D--Member components
Guide to Subdivision 276 - D
276 - 200 What this Subdivision is about
Member - level concepts
276 - 205 Meaning of determined member component
276 - 210 Meaning of member component
Subdivision 276 - E--Trust components
Guide to Subdivision 276 - E
276 - 250 What this Subdivision is about
276 - 255 Meaning of determined trust component
276 - 260 Meaning of trust component
276 - 265 Rules for working out trust components--general rules
276 - 270 Rules for working out trust components--allocation of deductions
Subdivision 276 - F--Unders and overs
Guide to Subdivision 276 - F
276 - 300 What this Subdivision is about
Adjustment of trust component for unders and overs etc.
276 - 305 Adjustment of trust component for unders and overs
276 - 310 Rounding adjustment deficit increases trust component
276 - 315 Rounding adjustment surplus decreases trust component
276 - 320 Meaning of trust component deficit
276 - 325 Trust component of character relating to assessable income--adjustment for cross - character allocation amount, carry - forward trust component deficit and FITO allocation amount
276 - 330 Meaning of cross - character allocation amount and carry - forward trust component deficit
276 - 335 Meaning of FITO allocation amount
276 - 340 Trust component character relating to tax offset--taxation of trust component deficit
276 - 345 Meaning of under and over of a character
276 - 350 Limited discovery period for unders and overs
Subdivision 276 - G--Shortfall and excess taxation
Guide to Subdivision 276 - G
276 - 400 What this Subdivision is about
Ensuring determined trust components are properly taxed
276 - 405 Trustee taxed on shortfall in determined member component (character relating to assessable income)
276 - 410 Trustee taxed on excess in determined member component (character relating to tax offset)
276 - 415 Trustee taxed on amounts of determined trust component that are not reflected in determined member components
Ensuring unders and overs are properly taxed
276 - 420 Trustee taxed on amounts of under of character relating to assessable income not properly carried forward
276 - 425 Trustee taxed on amounts of over of character relating to tax offset not properly carried forward
Commissioner may remit tax under this Subdivision
276 - 430 Commissioner may remit tax under this Subdivision
Subdivision 276 - H--AMMA statements
Guide to Subdivision 276 - H
276 - 450 What this Subdivision is about
276 - 455 Obligation to give an AMMA statement
276 - 460 AMIT member annual statement (or AMMA statement )
Subdivision 276 - J--Debt - like trust instruments
Guide to Subdivision 276 - J
276 - 500 What this Subdivision is about
276 - 505 Meaning of debt - like trust instrument
276 - 510 Debt - like trust instruments treated as debt interests etc.
276 - 515 Distribution on debt - like trust instrument could be deductible in working out trust components
Subdivision 276 - K--Ceasing to be an AMIT
Guide to Subdivision 276 - K
276 - 800 What this Subdivision is about
276 - 805 Application of Subdivision to former AMIT
276 - 810 Continue to work out trust components, unders, overs etc.
Part 3 - 30--Superannuation
Division 280--Guide to the superannuation provisions
280 - 1 Effect of this Division
280 - 5 Overview
280 - 10 Contributions phase--deductibility
280 - 15 Contributions phase--limits on superannuation tax concessions
280 - 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
The regulatory scheme outside this Act
280 - 40 Other relevant legislative schemes
Division 285--General concepts relating to superannuation
Division 290--Contributions to superannuation funds
Guide to Division 290 83
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
Deducting employer contributions
290 - 60 Employer contributions deductible
290 - 65 Application to employees etc.
Conditions for deducting an employer contribution
290 - 70 Employment activity conditions
290 - 75 Complying fund conditions
290 - 80 Age related conditions
Other employment - connected deductions
290 - 85 Contributions for former employees etc.
290 - 90 Controlling interest deductions
290 - 95 Amounts offset against superannuation guarantee charge
Returned contributions
290 - 100 Returned contributions assessable
Subdivision 290 - C--Deducting personal contributions
290 - 150 Personal contributions deductible
Conditions for deducting a personal contribution
290 - 155 Complying superannuation fund condition
290 - 165 Age - related conditions
290 - 167 Contribution must not be a downsizer contribution
290 - 168 Contribution must not be a re - contribution under the first home super saver scheme
290 - 169 Contribution must not be a COVID - 19 re - contribution
290 - 170 Notice of intent to deduct conditions
290 - 175 Deduction limited by amount specified in notice
290 - 180 Notice may be varied but not revoked or withdrawn
Subdivision 290 - D--Tax offsets for spouse contributions
290 - 230 Offset for spouse contribution
290 - 235 Limit on amount of tax offsets
290 - 240 Tax file number
Division 291--Excess concessional contributions
Guide to Division 291 104
291 - 1 What this Division is about
Subdivision 291 - A--Object of this Division
291 - 5 Object of this Division
Subdivision 291 - B--Excess concessional contributions
Guide to Subdivision 291 - B
291 - 10 What this Subdivision is about
291 - 15 Excess concessional contributions--assessable income, 15% tax offset
291 - 20 Your excess concessional contributions for a financial year
291 - 25 Your concessional contributions for a financial year
Subdivision 291 - C--Modifications for defined benefit interests
Guide to Subdivision 291 - C
291 - 155 What this Subdivision is about
Operative provisions
291 - 160 Application
291 - 165 Concessional contributions--special rules for defined benefit interests
291 - 170 Notional taxed contributions
291 - 175 Defined benefit interest
Subdivision 291 - CA--Contributions that do not result in excess contributions
Guide to Subdivision 291 - CA
291 - 365 What this Subdivision is about
291 - 370 Contributions that do not result in excess contributions
Subdivision 291 - D--Other provisions
Guide to Subdivision 291 - D
291 - 460 What this Subdivision is about
291 - 465 Commissioner's discretion to disregard contributions etc. in relation to a financial year
Division 292--Excess non - concessional contributions
Guide to Division 292 117
292 - 1 What this Division is about
Subdivision 292 - A--Object of this Division
292 - 5 Object of this Division
Subdivision 292 - B--Assessable income and tax offset
292 - 15 What this Subdivision is about
292 - 20 Amount in assessable income, and tax offset, relating to your non - concessional contributions
292 - 25 Amount included in assessable income
292 - 30 Amount of the tax offset
Subdivision 292 - C--Excess non - concessional contributions tax
292 - 75 What this Subdivision is about
292 - 80 Liability for excess non - concessional contributions tax
292 - 85 Your excess non - concessional contributions for a financial year
292 - 90 Your non - concessional contributions for a financial year
292 - 95 Contributions arising from structured settlements or orders for personal injuries
292 - 100 Contribution relating to some CGT small business concessions
292 - 102 Downsizer contributions
292 - 103 COVID - 19 re - contributions
Subdivision 292 - E--Excess non - concessional contributions tax assessments
Guide to Subdivision 292 - E
292 - 225 What this Subdivision is about
292 - 230 Commissioner must make an excess non - concessional contributions tax assessment
292 - 240 Validity of assessment
Subdivision 292 - F--Amending excess non - concessional contributions tax assessments
Guide to Subdivision 292 - F
292 - 300 What this Subdivision is about
292 - 305 Amendments within 4 years of the original assessment
292 - 310 Amended assessments are treated as excess non - concessional contributions tax assessments
292 - 315 Later amendments--on request
292 - 320 Later amendments--fraud or evasion
292 - 325 Further amendment of an amended particular
292 - 330 Amendment on review etc.
Subdivision 292 - G--Collection and recovery
Guide to Subdivision 292 - G
292 - 380 What this Subdivision is about
292 - 385 Due date for payment of excess non - concessional contributions tax
292 - 390 General interest charge
292 - 395 Refunds of amounts overpaid
Subdivision 292 - H--Other provisions
292 - 465 Commissioner's discretion to disregard contributions etc. in relation to a financial year
292 - 467 Direction that the value of superannuation interests is nil
Division 293--Sustaining the superannuation contribution concession
Guide to Division 293 148
293 - 1 What this Division is about
Subdivision 293 - A--Object of this Division
293 - 5 Object of this Division
Subdivision 293 - B--Sustaining the superannuation contribution concession
Guide to Subdivision 293 - B
293 - 10 What this Subdivision is about
Liability for tax
293 - 15 Liability for tax
293 - 20 Your taxable contributions
293 - 25 Your low tax contributions
293 - 30 Low tax contributed amounts
Subdivision 293 - C--When tax is payable
Guide to Subdivision 293 - C
293 - 60 What this Subdivision is about
293 - 65 When tax is payable--original assessments
293 - 70 When tax is payable--amended assessments
293 - 75 General interest charge
Subdivision 293 - D--Modifications for defined benefit interests
Guide to Subdivision 293 - D
293 - 100 What this Subdivision is about
293 - 105 Low tax contributions-- modification for defined benefit interests
293 - 115 Defined benefit contributions
Subdivision 293 - E--Modifications for constitutionally protected State higher level office holders
Guide to Subdivision 293 - E
293 - 140 What this Subdivision is about
293 - 145 Who this Subdivision applies to
293 - 150 Low tax contributions -- modification for CPFs
293 - 155 High income threshold--effect of modification
293 - 160 Salary packaged contributions
Subdivision 293 - F--Modifications for Commonwealth justices
Guide to Subdivision 293 - F
293 - 185 What this Subdivision is about
293 - 190 Who this Subdivision applies to
293 - 195 Defined benefit contributions-- modified treatment of contributions under the Judges' Pensions Act 1968
293 - 200 High income threshold--effect of modification
Subdivision 293 - G--Modifications for temporary residents who depart Australia
Guide to Subdivision 293 - G
293 - 225 What this Subdivision is about
293 - 230 Who is entitled to a refund
293 - 235 Amount of the refund
293 - 240 Entitlement to refund stops all Division 293 tax liabilities
Division 294--Transfer balance cap
Guide to Division 294 165
294 - 1 What this Division is about
Subdivision 294 - A--Object of this Division
294 - 5 Object of this Division
Subdivision 294 - B--Transfer balance account
Guide to Subdivision 294 - B
294 - 10 What this Subdivision is about
294 - 15 When you have a transfer balance account
294 - 20 Meaning of retirement phase recipient
294 - 25 Transfer balance credits
294 - 30 Excess transfer balance
294 - 35 Your transfer balance cap
294 - 40 Proportionally indexed transfer balance cap
294 - 45 Transfer balance account ends
294 - 50 Assumptions about income streams
294 - 55 Repayment of limited recourse borrowing arrangement
Subdivision 294 - C--Transfer balance debits
Guide to Subdivision 294 - C
294 - 75 What this Subdivision is about
294 - 80 Transfer balance debits
294 - 85 Certain events that result in reduced superannuation
294 - 90 Payment splits
294 - 95 Payment splits--no double debiting
Subdivision 294 - D--Modifications for certain defined benefit income streams
Guide to Subdivision 294 - D
294 - 120 What this Subdivision is about
294 - 125 When this Subdivision applies
294 - 130 Meaning of capped defined benefit income stream
294 - 135 Transfer balance credit--special rule for capped defined benefit income streams
294 - 140 Excess transfer balance--special rule for capped defined benefit income streams
294 - 145 Transfer balance debits--special rules for capped defined benefit income streams
Subdivision 294 - E--Modifications for death benefits dependants who are children
Guide to Subdivision 294 - E
294 - 170 What this Subdivision is about
294 - 175 When this Subdivision applies
294 - 180 Transfer balance account ends
294 - 185 Transfer balance cap--special rule for child recipient
294 - 190 Cap increment--child recipient just before 1 July 2017
294 - 195 Cap increment--child recipient on or after 1 July 2017, deceased had no transfer balance account
294 - 200 Cap increment--child recipient on or after 1 July 2017, deceased had transfer balance account
Subdivision 294 - F--Excess transfer balance tax
Guide to Subdivision 294 - F
294 - 225 What this Subdivision is about
294 - 230 Excess transfer balance tax
294 - 235 Your excess transfer balance earnings
294 - 240 When tax is payable--original assessments
294 - 245 When tax is payable--amended assessments
294 - 250 General interest charge
Division 295--Taxation of superannuation entities
Guide to Division 295 197
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
Guide to Subdivision 295 - C
295 - 155 What this Subdivision is about
Contributions and payments
295 - 160 Contributions and payments
295 - 165 Exception--spouse contributions
295 - 170 Exception--Government co - contributions and contributions for a child
295 - 173 Exception--trustee contributions
295 - 175 Exception--payments by a member spouse
295 - 180 Exception--choice to exclude certain contributions
295 - 185 Exception--temporary residents
Personal contributions and roll - over amounts
295 - 190 Personal contributions and roll - over amounts
295 - 195 Exclusion of personal contributions--contributions
295 - 197 Exclusion of personal contributions--successor funds
295 - 200 Transfers from foreign superannuation funds
Application of tables to RSA providers
295 - 205 Application of tables to RSA providers
Former constitutionally protected funds
295 - 210 Former constitutionally protected funds
Subdivision 295 - D--Contributions excluded
295 - 260 Transfer of liability to investment vehicle
295 - 265 Application of pre - 1 July 88 funding credits
295 - 270 Anticipated funding credits
Subdivision 295 - E--Other income amounts
295 - 320 Other amounts included in assessable income
295 - 325 Previously complying funds
295 - 330 Previously foreign funds
295 - 335 Amounts excluded from assessable income
Subdivision 295 - F--Exempt income
295 - 385 Income from assets set aside to meet current pension liabilities
295 - 387 Disregarded small fund assets
295 - 390 Income from other assets used to meet current pension liabilities
295 - 395 Meaning of segregated non - current assets
295 - 400 Income of a PST attributable to current pension liabilities
295 - 407 Covered superannuation income streams--RSAs
295 - 410 Amount credited to RSA
Subdivision 295 - G--Deductions
295 - 460 Benefits for which deductions are available
295 - 465 Complying funds--deductions for insurance premiums
295 - 470 Complying funds--deductions for future liability to pay benefits
295 - 475 RSA providers--deductions for insurance premiums
295 - 480 Meaning of whole of life policy and endowment policy
Certain amounts cannot be deducted
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
Subdivision 295 - J--Tax offset for no - TFN contributions income (TFN quoted within 5 years)
295 - 675 Entitlement to a tax offset
295 - 680 Amount of the tax offset
Division 301--Superannuation member benefits paid from complying plans etc.
Guide to Division 301 253
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: general rules
Member benefits--recipient aged 60 or above
301 - 10 All superannuation benefits are tax free
Member benefits--recipient aged over preservation age and under 60
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
Member benefits--recipient aged under preservation age
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: elements untaxed in fund
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
Member benefits (element untaxed in fund)--recipient aged 60 or above
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
Member benefits (element untaxed in fund)--recipient aged over preservation age and under 60
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
Member benefits (element untaxed in fund)--recipient aged under preservation age
301 - 115 Superannuation lump sum--element untaxed in fund taxed at 30% up to untaxed plan cap amount, top rate on remainder
301 - 120 Superannuation income stream--element untaxed in fund is assessable income
301 - 125 Unclaimed money payments by the Commissioner
Subdivision 301 - D--Departing Australia superannuation payments
301 - 170 Departing Australia superannuation payments
301 - 175 Treatment of departing Australia superannuation benefits
Subdivision 301 - E--Superannuation lump sum member benefits less than $200
301 - 225 Superannuation lump sum member benefits less than $200 are tax free
Subdivision 301 - F--Veterans' superannuation (invalidity pension) tax offset
301 - 275 Veterans' superannuation (invalidity pension) tax offset
Division 302--Superannuation death benefits paid from complying plans etc.
Guide to Division 302 267
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
Lump sum death benefits to dependants are tax free
302 - 60 All of superannuation lump sum is tax free
Superannuation income stream--either deceased died aged 60 or above or dependant aged 60 or above
302 - 65 Superannuation income stream benefits are tax free
Superannuation income stream--deceased died aged under 60 and dependant aged under 60
302 - 70 Superannuation income stream--tax free status of tax free component
302 - 75 Superannuation income stream--taxable component attracts 15% offset
Death benefits to dependant--elements untaxed in fund
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
Guide to Division 303 276
303 - 1 What this Division is about
Subdivision 303 - A--Modifications for defined benefit income
303 - 2 Effect of exceeding defined benefit income cap on assessable income
303 - 3 Effect of exceeding defined benefit income cap on tax offsets
303 - 4 Meaning of defined benefit income cap
Subdivision 303 - B--Other special circumstances
303 - 5 Commutation of income stream if you are under 25 etc.
303 - 10 Superannuation lump sum member benefit paid to member having a terminal medical condition
303 - 15 Payments from release authorities--general
303 - 20 Payments from release authorities--paying debt account discharge liability for a superannuation interest
Division 304--Superannuation benefits in breach of legislative requirements etc.
Guide to Division 304 281
304 - 1 What this Division is about
304 - 10 Superannuation benefits in breach of legislative requirements etc.
304 - 20 Excess payments from release authorities--paying debt account discharge liability for a superannuation interest
Division 305--Superannuation benefits paid from non - complying superannuation plans
Guide to Division 305 284
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
Lump sums received within 6 months after Australian residency or termination of foreign employment etc.
305 - 60 Lump sums tax free--foreign resident period
305 - 65 Lump sums tax free--Australian resident period
Lump sums to which sections 305 - 60 and 305 - 65 do not apply
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.
Guide to Division 306 292
306 - 1 What this Division is about
306 - 5 Effect of a roll - over superannuation benefit
306 - 10 Roll - over superannuation benefit
306 - 12 Involuntary roll - over superannuation benefit
306 - 15 Tax on excess untaxed roll - over amounts
306 - 20 Effect of payment to government of unclaimed superannuation money
306 - 25 Payments connected with financial claims scheme to RSAs
Division 307--Key concepts relating to superannuation benefits
Guide to Division 307 298
307 - 1 What this Division is about
Subdivision 307 - A--Superannuation benefits generally
307 - 5 What is a superannuation benefit ?
307 - 10 Payments that are not superannuation benefits
307 - 15 Payments for your benefit or at your direction or request
Subdivision 307 - B--Superannuation lump sums and superannuation income stream benefits
307 - 65 Meaning of superannuation lump sum
307 - 70 Meaning of superannuation income stream and superannuation income stream benefit
307 - 75 Meaning of retirement phase superannuation income stream benefit
307 - 80 When a superannuation income stream is in the retirement phase
Subdivision 307 - C--Components of a superannuation benefit
307 - 120 Components of superannuation benefit
307 - 130 Superannuation guarantee payment consists entirely of taxable component
307 - 135 Superannuation co - contribution benefit payment consists entirely of tax free component
307 - 140 Contributions - splitting superannuation benefit consists entirely of taxable component
307 - 142 Components of certain unclaimed money payments
307 - 145 Modification for disability benefits
307 - 150 Modification in respect of superannuation lump sum with element untaxed in fund
Subdivision 307 - D--Superannuation interests
307 - 200 Regulations relating to meaning of superannuation interests
307 - 205 Value of superannuation interest
307 - 210 Tax free component of superannuation interest
307 - 215 Taxable component of superannuation interest
307 - 220 What is the contributions segment ?
307 - 225 What is the crystallised segment ?
307 - 230 Total superannuation balance
307 - 231 Limited recourse borrowing arrangements
Subdivision 307 - E--Elements taxed and untaxed in the fund of the taxable component of superannuation benefit
307 - 275 Element taxed in the fund and element untaxed in the fund of superannuation benefits
307 - 280 Superannuation benefits from constitutionally protected funds etc.
307 - 285 Trustee can choose to convert element taxed in the fund to element untaxed in the fund
307 - 290 Taxed and untaxed elements of death benefit superannuation lump sums
307 - 295 Superannuation benefits from public sector superannuation schemes may include untaxed element
307 - 297 Public sector superannuation schemes--elements set by regulations
307 - 300 Certain unclaimed money payments
Subdivision 307 - F--Low rate cap and untaxed plan cap amounts
307 - 345 Low rate cap amount
307 - 350 Untaxed plan cap amount
Subdivision 307 - G--Other concepts
307 - 400 Meaning of service period for a superannuation lump sum
Division 310--Loss relief for merging superannuation funds
Guide to Division 310 342
310 - 1 What this Division is about
Subdivision 310 - A--Object of this Division
Subdivision 310 - B--Choice to transfer losses
310 - 10 Original fund's assets extend beyond life insurance policies and units in pooled superannuation trusts
310 - 15 Original fund's assets include a complying superannuation life insurance policy
310 - 20 Original fund's assets include units in a pooled superannuation trust
Subdivision 310 - C--Consequences of choosing to transfer losses
310 - 25 Who losses can be transferred to
310 - 30 Losses that can be transferred
310 - 35 Effect of transferring a net capital loss
310 - 40 Effect of transferring a tax loss
Subdivision 310 - D--Choice for assets roll - over
310 - 45 Choosing the assets roll - over
310 - 50 Choosing the form of the assets roll - over
Subdivision 310 - E--Consequences of choosing assets roll - over
310 - 55 CGT assets--if global asset approach chosen
310 - 60 CGT assets--individual asset approach
310 - 65 Revenue assets--if global asset approach chosen
310 - 70 Revenue assets--individual asset approach
310 - 75 Further consequences for roll - overs involving life insurance companies
Division 312--Trans - Tasman portability of retirement savings
Guide to Division 312 359
312 - 1 What this Division is about
Subdivision 312 - A--Preliminary
312 - 5 Division implements Arrangement with New Zealand
Subdivision 312 - B--Amounts contributed to complying superannuation funds from KiwiSaver schemes
312 - 10 Amounts contributed to complying superannuation funds from KiwiSaver schemes
Subdivision 312 - C--Superannuation benefits paid to KiwiSaver scheme providers
312 - 15 Superannuation benefits paid from complying superannuation funds to KiwiSaver schemes
312 - 20 Superannuation benefits paid by Commissioner to KiwiSaver schemes
Division 313--First home super saver scheme
Guide to Division 313 363
313 - 1 What this Division is about
Subdivision 313 - A--Preliminary
313 - 5 Object of this Division
313 - 10 Application of this Division
Subdivision 313 - B--Assessable income and tax offset
Guide to Subdivision 313 - B
313 - 15 What this Subdivision is about
313 - 20 Amount included in assessable income
313 - 25 Amount of the tax offset
Subdivision 313 - C--Purchasing or constructing a residential premises
Guide to Subdivision 313 - C
313 - 30 What this Subdivision is about
313 - 35 Purchasing or constructing a residential premises
313 - 40 Notifying Commissioner
Subdivision 313 - D--Contributing amounts to superannuation
Guide to Subdivision 313 - D
313 - 45 What this Subdivision is about
313 - 50 Contributing amounts to superannuation
Subdivision 313 - E--First home super saver tax
Guide to Subdivision 313 - E
313 - 55 What this Subdivision is about
313 - 60 First home super saver tax
313 - 65 When tax is payable--original assessments
313 - 70 When tax is payable--amended assessments
313 - 75 General interest charge
Subdivision 313 - F--Review of decisions
Guide to Subdivision 313 - F
313 - 80 What this Subdivision is about
Operative provisions
313 - 85 Review rights for decisions made under this Division
Guide to Division 275
275 - A Meaning of managed investment trust
275 - B Choice for capital treatment of managed investment trust gains and losses
275 - C Carried interests in managed investment trusts
275 - L Modification for non - arm's length income