INCOME TAX ASSESSMENT ACT 1997 - SECT 59.65 Water infrastructure improvement payments

INCOME TAX ASSESSMENT ACT 1997 - SECT 59.65

  (1)   A * SRWUIP payment, in respect of a * SRWUIP program, to an entity that is a participant in the program is not assessable income and is not * exempt income if:

  (a)   the entity has made a choice under subsection   (2) for the program; and

  (b)   if the payment is an * indirect SRWUIP payment--the entity * derives the payment because it owns an asset (otherwise than under a * financial arrangement) to which the program relates.

Note:   One of the requirements for a SRWUIP payment is for the SRWUIP program to be on the published list of SRWUIP programs for the day the payment is made (see subsection   59 - 67(5)).

  (2)   An entity may make a choice for a * SRWUIP program under this subsection if, in an income year:

  (a)   the entity * derives a * SRWUIP payment in respect of the program but has not , in an earlier income year:

  (i)   derived a SRWUIP payment in respect of the program; or

  (ii)   incurred * SRWUIP expenditure in respect of the program; or

  (b)   the entity incurs SRWUIP expenditure in respect of the program but has not , in an earlier income year:

  (i)   derived a SRWUIP payment in respect of the program; or

  (ii)   incurred SRWUIP expenditure in respect of the program.

Disregard subsection   26 - 100(3) (about expenditure that is never SRWUIP expenditure) for the purposes of this subsection.

  (3)   The choice must be:

  (a)   made in the * approved form; and

  (b)   made:

  (i)   unless subparagraph   (ii) or (iii) applies--on or before the day the entity lodges its * income tax return for the income year; or

  (ii)   if the Commissioner makes an assessment of the entity's taxable income for the income year before the entity lodges its income tax return for the income year, and subparagraph   (iii) does not apply--on or before the day the Commissioner makes that assessment; or

  (iii)   within such further time as the Commissioner allows.

The choice cannot be revoked.

Integrity rule

  (4)   Subsection   (1) does not apply if, at the time the entity * derives the * SRWUIP payment in respect of a * SRWUIP program, it is reasonable to conclude that:

  (a)   the entity will not incur expenditure at least equal to the payment on works required by the program; and

  (b)   despite not incurring such expenditure, the entity will comply with the program because an * associate of the entity will incur expenditure on those works; and

  (c)   the associate has not made, and will not make, a choice under subsection   (2) for the program.