INCOME TAX ASSESSMENT ACT 1997 - SECT 36.55 Converting excess franking offsets into tax loss
INCOME TAX ASSESSMENT ACT 1997 - SECT 36.55
Converting excess franking offsets into tax loss(1) An entity that is a * corporate tax entity at any time during an income year has an amount of excess franking offsets for that year if:
(a) the total amount of * tax offsets to which the entity is entitled for that year under Division 207 and Subdivision 210 - H (except those that are subject to the refundable tax offset rules because of section 67 - 25);
(b) the amount of income tax that the entity would have to pay on its taxable income for that year if:
(i) it did not have those tax offsets; and
(ii) it did not have any tax offsets that are subject to the tax offset carry forward rules or the refundable tax offset rules; and
(iii) it did not have any tax offset under section 205 - 70;
but had all its other tax offsets.
The excess is the amount of excess franking offsets .
Note: Division 65 sets out the tax offset carry forward rules. Division 67 sets out which tax offsets are subject to the refundable tax offset rules.
Example: For the 2017 - 18 income year, Company E (which is not a base rate entity) has:
- assessable income of $200 (franked distribution of $140 and franking credit of $60); and
- $100 of deductions that are allowable.
The tax offset of $60 from the franking credit is not stated in Division 67 to be subject to the refundable tax offset rules.
Disregarding the tax offset of $60 from the franking credit, the amount of income tax that Company E would have to pay is $30:
This amount is $30 less than the tax offset of $60. Company E therefore has an amount of excess franking offsets of $30 for that year.
How to work out the amount of the tax loss
(2) For the purposes of this Act, if:
(a) an entity has an amount of * excess franking offsets for an income year; and
(b) the result of applying the following method statement is a positive amount;
(c) the entity is taken to have a * tax loss for that year equal to that positive amount (instead of an amount of tax loss worked out under section 36 - 10, 165 - 70, 175 - 35 or 701 - 30); and
(d) that year is taken to be a * loss year for the entity if the entity would not otherwise have a tax loss for that year.
Method statement
Step 1. Work out the amount (if any) that would have been the entity's * tax loss for that year under section 36 - 10, 165 - 70, 175 - 35 or 701 - 30 if the entity's * net exempt income for that year (if any) were disregarded.
Note: See section 36 - 20 for the calculation of net exempt income.
Step 2. Divide the amount of * excess franking offsets by the entity's * corporate tax rate for imputation purposes for that year.
Step 3. Add the results of steps 1 and 2.
Step 4. Reduce the result of step 3 by the entity's * net exempt income for that year (if any).
The result of this step is taken to be the entity's * tax loss for that year. However, if the result of this step is nil or a negative amount, the company does not have any tax loss for that year.
Example: Assume that company E did not derive any exempt income for the 2017 - 2018 income year and that it would not otherwise have any tax loss for that year under section 36 - 10, 165 - 70, 175 - 35 or 701 - 30.
Applying the method statement, the amount of excess franking offsets of $30 generates a tax loss of $100 for that year, which can be deducted in a later income year under section 36 - 15 or 36 - 17.
(a) is made to the entity or a fund, authority or institution it operates; and
(b) is of a kind that the giver can deduct under Subdivision 30 - A.
Generally, you can deduct certain contributions and gifts to political parties, independent candidates and members.
Contributions and gifts must be at least $2 and there is a limit on the total amount that you can deduct.
You can deduct an amount if you enter into a conservation covenant over land that you own and you satisfy certain conditions.
The amount you can deduct is the difference between the market value of the land just before and after you enter into the covenant.
This Division prevents losses of individuals from non - commercial business activities being offset against other assessable income in the year the loss is incurred. The loss is deferred.
It sets out an income requirement and a series of tests to determine whether a business activity is treated as being non - commercial.
The deferred losses may be offset in later years against profits from the activity. They may also be offset against other income if the income requirement and one of the other tests are satisfied, or if the Commissioner exercises a discretion.
Method statement
Step 1. Work out the amount (if any) that would have been the entity's * tax loss for that year under section 36 - 10, 165 - 70, 175 - 35 or 701 - 30 if the entity's * net exempt income for that year (if any) were disregarded.
Note: See section 36 - 20 for the calculation of net exempt income.
Step 2. Divide the amount of * excess franking offsets by the entity's * corporate tax rate for imputation purposes for that year.
Step 3. Add the results of steps 1 and 2.
Step 4. Reduce the result of step 3 by the entity's * net exempt income for that year (if any).
The result of this step is taken to be the entity's * tax loss for that year. However, if the result of this step is nil or a negative amount, the company does not have any tax loss for that year.
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">- 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 2--Liability rules of general application
Part 2 - 10--Capital allowances: rules about deductibility of capital expenditure
Division 40--Capital allowances
Guide to Division 40 2
40 - 1 What this Division is about
40 - 10 Simplified outline of this Division
Subdivision 40 - A--Objects of Division
Subdivision 40 - B--Core provisions
Guide to Subdivision 40 - B
40 - 20 What this Subdivision is about
40 - 25 Deducting amounts for depreciating assets
40 - 27 Further reduction of deduction for second - hand assets in residential property
40 - 30 What a depreciating asset is
40 - 35 Jointly held depreciating assets
40 - 40 Meaning of hold a depreciating asset
40 - 45 Assets to which this Division does not apply
40 - 50 Assets for which you deduct under another Subdivision
40 - 53 Alterations etc. to certain depreciating assets
40 - 55 Use of the "cents per kilometre" car expense deduction method
40 - 60 When a depreciating asset starts to decline in value
40 - 65 Choice of methods to work out the decline in value
40 - 70 Diminishing value method
40 - 72 Diminishing value method for post - 9 May 2006 assets
40 - 75 Prime cost method
40 - 80 When you can deduct the asset's cost
40 - 82 Assets costing less than $150,000--medium sized businesses--assets first acquired between 2 April 2019 and 31 December 2020
40 - 85 Meaning of adjustable value and opening adjustable value of a depreciating asset
40 - 90 Debt forgiveness
40 - 95 Choice of determining effective life
40 - 100 Commissioner's determination of effective life
40 - 102 Capped life of certain depreciating assets
40 - 103 Effective life and remaining effective life of certain vessels
40 - 105 Self - assessing effective life
40 - 110 Recalculating effective life
40 - 115 Splitting a depreciating asset
40 - 120 Replacement spectrum licences
40 - 125 Merging depreciating assets
40 - 135 Certain anti - avoidance provisions
40 - 140 Getting tax information from associates
Guide to Subdivision 40 - C
40 - 170 What this Subdivision is about
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 - 205 Cost of a split depreciating asset
40 - 210 Cost of merged depreciating assets
40 - 215 Adjustment: double deduction
40 - 220 Cost reduced by amounts not of a capital nature
40 - 222 Cost reduced by water infrastructure improvement expenditure
40 - 225 Adjustment: acquiring a car at a discount
40 - 230 Adjustment: car limit
40 - 235 Adjustment: National Disability Insurance Scheme costs
Subdivision 40 - D--Balancing adjustments
Guide to Subdivision 40 - D
40 - 280 What this Subdivision is about
40 - 285 Balancing adjustments
40 - 290 Reduction for non - taxable use
40 - 291 Reduction for second - hand assets used in residential property
40 - 292 Adjustments--assets used for both general tax purposes and R&D activities
40 - 293 Adjustments--partnership assets used for both general tax purposes and R&D activities
40 - 295 Meaning of balancing adjustment event
40 - 300 Meaning of termination value
40 - 305 Amount you are taken to have received under a balancing adjustment event
40 - 310 Apportionment of termination value
40 - 320 Car to which section 40 - 225 applies
40 - 325 Adjustment: car limit
40 - 335 Deduction for in - house software where you will never use it
40 - 340 Roll - over relief
40 - 345 What the roll - over relief is
40 - 350 Additional consequences
40 - 360 Notice to allow transferee to work out how this Division applies
40 - 362 Roll - over relief for holders of vessels covered by certificates under the Shipping Reform (Tax Incentives) Act 2012
40 - 363 Roll - over relief for interest realignment arrangements
40 - 364 Interest realignment adjustments
40 - 365 Involuntary disposals
40 - 370 Balancing adjustments where there has been use of different car expense methods
Subdivision 40 - E--Low - value and software development pools
Guide to Subdivision 40 - E
40 - 420 What this Subdivision is about
Operative provisions
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
Guide to Subdivision 40 - F
40 - 510 What this Subdivision is about
40 - 515 Water facilities, horticultural plants, fodder storage assets and fencing assets
40 - 520 Meaning of water facility , horticultural plant , fodder storage asset and fencing asset
40 - 530 When declines in value start
40 - 535 Meaning of horticulture and commercial horticulture
40 - 540 How you work out the decline in value for water facilities
40 - 545 How you work out the decline in value for horticultural plants
40 - 548 How you work out the decline in value for fodder storage assets
40 - 551 How you work out the decline in value for fencing assets
40 - 555 Amounts you cannot deduct
40 - 560 Non - arm's length transactions
40 - 565 Extra deduction for destruction of a horticultural plant
40 - 570 How this Subdivision applies to partners and partnerships
40 - 575 Getting tax information if you acquire a horticultural plant
Subdivision 40 - G--Capital expenditure of primary producers and other landholders
Guide to Subdivision 40 - G
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
Guide to Subdivision 40 - H
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
Guide to Subdivision 40 - I
40 - 825 What this Subdivision is about
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
Guide to Subdivision 40 - J
40 - 1000 What this Subdivision is about
40 - 1005 Deduction for expenditure for establishing trees in carbon sink forests
40 - 1010 Expenditure for establishing trees in carbon sink forests
40 - 1015 Carbon sequestration by trees
40 - 1020 Certain expenditure disregarded
40 - 1025 Non - arm's length transactions
40 - 1030 Extra deduction for destruction of trees in carbon sink forest
40 - 1035 Getting information if you acquire a carbon sink forest
Subdivision 40 - K--Farm - in farm - out arrangements
Guide to Subdivision 40 - K
40 - 1095 What this Subdivision is about
Farm - in farm - out arrangements and exploration benefits
40 - 1100 Meaning of farm - in farm - out arrangement and exploration benefit
40 - 1105 Treatment of certain exploration benefits received under farm - in farm - out arrangements
40 - 1110 Cost of split interests resulting from farm - in farm - out arrangements
40 - 1115 Deductions relating to receipt of exploration benefits
40 - 1120 Cost base and reduced cost base of exploration benefits etc.
40 - 1125 Effect of exploration benefits on the cost of mining, quarrying or prospecting information
40 - 1130 Consequences of certain exploration benefits provided under farm - in farm - out arrangements
Division 41--Additional deduction for certain new business investment
Guide to Division 41 160
41 - 1 What this Division is about
41 - 10 Entitlement to deduction for investment
41 - 15 Amount of deduction
41 - 20 Recognised new investment amount
41 - 25 Investment commitment time
41 - 35 New investment threshold
Division 43--Deductions for capital works
Guide to Division 43 168
43 - 1 What this Division is about
43 - 2 Key concepts used in this Division
Subdivision 43 - A--Key operative provisions
Guide to Subdivision 43 - A
43 - 5 What this Subdivision is about
Operative provisions
43 - 10 Deductions for capital works
43 - 20 Capital works to which this Division applies
43 - 25 Rate of deduction
43 - 30 No deduction until construction is complete
43 - 35 Requirement for registration under the Industry Research and Development Act
43 - 40 Deduction for destruction of capital works
43 - 45 Certain anti - avoidance provisions
43 - 50 Links and signposts to other parts of the Act
43 - 55 Anti - avoidance--arrangement etc. with tax - exempt entity
Subdivision 43 - B--Establishing the deduction base
Guide to Subdivision 43 - B
43 - 60 What this Subdivision is about
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 Industry Innovation and Science Australia
Subdivision 43 - C--Your area and your construction expenditure
Guide to Subdivision 43 - C
43 - 105 What this Subdivision is about
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
Guide to Subdivision 43 - D
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
Guide to Subdivision 43 - E
43 - 155 What this Subdivision is about
43 - 160 Your area is used for a purpose if it is maintained ready for use for the purpose
43 - 165 Temporary cessation of use
43 - 170 Own use--capital works other than hotel and apartment buildings
43 - 175 Own use--hotel and apartment buildings
43 - 180 Special rules for hotel and apartment buildings
43 - 185 Residential or display use
43 - 190 Use of facilities not commonly provided, and of certain buildings used to operate a hotel, motel or guest house
43 - 195 Use for R&D activities must be in connection with a business
Subdivision 43 - F--Calculation of deduction
Guide to Subdivision 43 - F
43 - 200 What this Subdivision is about
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
Guide to Subdivision 43 - G
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
Guide to Subdivision 43 - H
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
Guide to Division 45 217
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
Subdivision 50 - A--Various exempt entities
50 - 1 Entities whose ordinary income and statutory income is exempt
50 - 5 Charity, education and science
50 - 15 Employees and employers
50 - 40 Primary and secondary resources, and tourism
50 - 45 Sports, culture and recreation
50 - 47 Special condition for all items
50 - 50 Special conditions for item 1.1
50 - 52 Special condition for item 1.1
50 - 55 Special conditions for items 1.3, 1.4, 6.1 and 6.2
50 - 65 Special conditions for item 1.6
50 - 70 Special conditions for items 1.7, 2.1, 9.1 and 9.2
50 - 72 Special condition for item 4.1
50 - 75 Certain distributions may be made overseas
Subdivision 50 - B--Endorsing charitable entities as exempt from income tax
Guide to Subdivision 50 - B
50 - 100 What this Subdivision is about
Endorsing charitable entities as exempt from income tax
50 - 105 Endorsement by Commissioner
50 - 110 Entitlement to endorsement
51 - 1 Amounts of ordinary income and statutory income that are exempt
51 - 10 Education and training
51 - 32 Compensation payments for loss of tax exempt payments
51 - 33 Compensation payments for loss of pay and/or allowances as a Defence reservist
51 - 35 Payments to a full - time student at a school, college or university
51 - 40 Payments to a secondary student
51 - 42 Bonuses for early completion of an apprenticeship
51 - 43 Income collected or derived by copyright collecting society
51 - 45 Income collected or derived by resale royalty collecting society
51 - 50 Maintenance payments to a spouse or child
51 - 52 Income derived from eligible venture capital investments by ESVCLPs
51 - 54 Gain or profit from disposal of eligible venture capital investments
51 - 55 Gain or profit from disposal of venture capital equity
51 - 57 Interest on judgment debt relating to personal injury
51 - 60 Prime Minister's Prizes
51 - 105 Shipping activities
51 - 110 Core shipping activities
51 - 115 Incidental shipping activities
51 - 120 Interest on unclaimed money and property
51 - 125 2018 storms--relief payments
Division 52--Certain pensions, benefits and allowances are exempt from income tax
Guide to Division 52 266
52 - 1 What this Division is about
Subdivision 52 - A--Exempt payments under the Social Security Act 1991
Guide to Subdivision 52 - A
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
Guide to Subdivision 52 - B
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 (Transitional Provisions and Consequential Amendments) Act 1986
Guide to Subdivision 52 - C
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
Guide to Subdivision 52 - CA
52 - 112 What this Subdivision is about
52 - 114 How much of a payment under the Military Rehabilitation and Compensation Act is exempt?
Subdivision 52 - CB--Exempt payments under the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006
52 - 117 Payments of travelling expenses and pharmaceutical supplement are exempt
Subdivision 52 - CC--Exempt payments under the Treatment Benefits (Special Access) Act 2019
52 - 120 Payments of travelling expenses and pharmaceutical supplement are exempt
Subdivision 52 - E--Exempt payments under the ABSTUDY scheme
Guide to Subdivision 52 - E
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 (Family Assistance) (Administration) Act 1999
52 - 150 Family assistance payments are exempt
Subdivision 52 - H--Other exempt payments
52 - 160 Economic security strategy payments are exempt
52 - 162 ETR payments are exempt
52 - 165 Household stimulus payments are exempt
52 - 170 Outer Regional and Remote payments under the Helping Children with Autism package are exempt
52 - 172 Outer Regional and Remote payments under the Better Start for Children with Disability initiative are exempt
52 - 175 Continence aids payments are exempt
52 - 180 National Disability Insurance Scheme amounts are exempt
52 - 185 Acute support packages are exempt
Division 53--Various exempt payments
Guide to Division 53 322
53 - 1 What this Division is about
Operative provisions
53 - 10 Exemption of various types of payments
53 - 20 Exemption of similar Australian and United Kingdom veterans' payments
53 - 25 Coronavirus economic response payment
53 - 30 Territories Stolen Generations Redress Scheme payments are exempt
Division 54--Exemption for certain payments made under structured settlements and structured orders
Guide to Division 54 325
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
Guide to Division 55 341
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
Guide to Division 58 343
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
Guide to Division 59 354
59 - 1 What this Division is about
Operative provisions
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 or issue of MCIs
59 - 50 Native title benefits
59 - 55 2019 - 20 bushfires--payments for volunteer work with fire services
59 - 60 2019 - 20 bushfires--disaster relief payments and non - cash benefits
59 - 65 Water infrastructure improvement payments
59 - 67 Meaning of SRWUIP program , SRWUIP payment , direct SRWUIP payment and indirect SRWUIP payment
59 - 70 List of SRWUIP programs
59 - 75 Commissioner to be kept informed
59 - 85 2019 floods--recovery grants for small businesses, primary producers and non - profit organisations
59 - 86 2019 floods--on - farm grant program for primary producers
59 - 95 Coronavirus economic response payment
59 - 96 COVID - 19 disaster payment
59 - 97 State and Territory grants to small business relating to the recovery from the coronavirus known as COVID - 19
59 - 98 Commonwealth small business support payments relating to the coronavirus known as COVID - 19
59 - 99 2021 floods and storms--recovery grants
59 - 100 Refund of large - scale generation shortfall charge
59 - 105 Cyclone Seroja--recovery grants
Part 2 - 20--Tax offsets
Division 61--Generally applicable tax offsets
Subdivision 61 - A--Dependant (invalid and carer) tax offset
Guide to Subdivision 61 - A
61 - 1 What this Subdivision is about
61 - 5 Object of this Subdivision
Entitlement to the dependant (invalid and carer) tax offset
61 - 10 Who is entitled to the tax offset
61 - 15 Cases involving more than one spouse
61 - 20 Exceeding the income limit for family tax benefit (Part B)
61 - 25 Eligibility for family tax benefit (Part B) without shared care
Amount of the dependant (invalid and carer) tax offset
61 - 30 Amount of the dependant (invalid and carer) tax offset
61 - 35 Families with shared care percentages
61 - 40 Reduced amounts of dependant (invalid and carer) tax offset
61 - 45 Reductions to take account of the other individual's income
Subdivision 61 - D--Low Income tax offset
Guide to Subdivision 61 - D
61 - 100 What this Subdivision is about
61 - 110 Entitlement to the Low Income tax offset
61 - 115 Amount of the Low Income tax offset
Subdivision 61 - G--Private health insurance offset complementary to Part 2 - 2 of the Private Health Insurance Act 2007
Guide to Subdivision 61 - G
61 - 200 What this Subdivision is about
61 - 205 Entitlement to the private health insurance tax offset
61 - 210 Amount of the private health insurance tax offset
61 - 215 Reallocation of the private health insurance tax offset between spouses
Subdivision 61 - L--Tax offset for Medicare levy surcharge (lump sum payments in arrears)
Guide to Subdivision 61 - L
61 - 575 What this Subdivision is about
61 - 580 Entitlement to a tax offset
61 - 585 The amount of a tax offset
61 - 590 Definition of MLS lump sums
Subdivision 61 - N--Seafarer tax offset
Guide to Subdivision 61 - N
61 - 695 What this Subdivision is about
61 - 700 Object of this Subdivision
61 - 705 Who is entitled to the seafarer tax offset
61 - 710 Amount of the seafarer tax offset
Subdivision 61 - P--ESVCLP tax offset
Guide to Subdivision 61 - P
61 - 750 What this Subdivision is about
61 - 755 Object of this Subdivision
61 - 760 Who is entitled to the ESVCLP tax offset
61 - 765 Amount of the ESVCLP tax offset--general case
61 - 770 Amount of the ESVCLP tax offset--members of trusts or partnerships
61 - 775 Amount of the ESVCLP tax offset--trustees
Division 63--Common rules for tax offsets
Guide to Division 63 398
63 - 1 What this Division is about
Division 65--Tax offset carry forward rules
Guide to Division 65 401
65 - 10 What this Division is about
65 - 30 Amount carried forward
65 - 35 How to apply carried forward tax offsets
65 - 40 When a company cannot apply a tax offset
65 - 55 Deduction for amounts paid for debts incurred before bankruptcy
Division 67--Refundable tax offset rules
Guide to Division 67 406
67 - 10 What this Division is about
67 - 20 Which tax offsets this Division applies to
67 - 23 Refundable tax offsets
67 - 25 Refundable tax offsets--franked distributions
67 - 30 Refundable tax offsets--R&D
Guide to Division 40
40 - E Low - value and software development pools
40 - F Primary production depreciating assets
40 - G Capital expenditure of primary producers and other landholders
40 - H Capital expenditure that is immediately deductible
40 - I Capital expenditure that is deductible over time
40 - J Capital expenditure for the establishment of trees in carbon sink forests
40 - K Farm - in farm - out arrangements