INCOME TAX ASSESSMENT ACT 1997
INCOME TAX ASSESSMENT ACT 1997
TABLE OF PROVISIONS
Long Title
1.1. Short title
1.2. Commencement
1.3. Differences in style not to affect meaning
2.1. The design
2.5. The pyramid
2.10. When defined terms are identified
2.15. When terms are not identified
2.20. Identifying the defined term in a definition
2.25. Purposes
2.30. Gaps in the numbering
2.35. Non-operative material
2.40. Guides
2.45. Other material
3.1. What this Act is about
3.5. Annual income tax
3.10. Your other obligations as a taxpayer
3.15. Your obligations other than as a taxpayer
4.1. Who must pay income tax
4.5. Meaning of you
4.10. How to work out how much income tax you must pay
4.15. How to work out your taxable income
6.1. Diagram showing relationships among concepts in this Division
6.5. Operative provisions Income according to ordinary concepts (ordinary income)
6.10. Other assessable income (statutory income)
6.15. What is not assessable income
6.20. Exempt income
6.25. Relationships among various rules about ordinary income
8.1. General deductions
8.5. Specific deductions
8.10. No double deductions
9.1. List of entities
9.5. Entities that work out their income tax by reference to something other than taxable income
10.5. List of provisions about assessable income
11.1. Overview
11.5. Entities that are exempt, no matter what kind of ordinary or statutory income they have
11.10. Ordinary or statutory income which is exempt, no matter whose it is
11.15. Ordinary or statutory income which is exempt only if it is derived by certain entities
12.5. List of provisions about deductions
13.1. List of tax offsets
26.55. Limit on deductions
28.1. Guide to Division 28 What this Division is about
28.5. Map of this Division
28.10. Application of Division 28
28.12. Car expenses
28.13. Meaning of car expense
28.14. Guide to Subdivision 28-B What this Subdivision is about
28.15. Choosing among the 4 methods
28.20. Operative provision Rules governing choice of method
28.25. How to calculate your deduction
28.30. Depreciation
28.35. Substantiation
28.45. How to calculate your deduction
28.50. Eligibility
28.55. Depreciation
28.60. Substantiation
28.70. How to calculate your deduction
28.75. Eligibility
28.80. Substantiation
28.90. How to calculate your deduction
28.95. Eligibility
28.100. Substantiation
28.105. Guide to Subdivision 28-G What this Subdivision is about
28.110. Steps for keeping a log book
28.115. Operative provisions Income years for which you need to keep a log book
28.120. Choosing the 12 week period for a log book
28.125. How to keep a log book
28.130. Replacing one car with another
28.135. Guide to Subdivision 28-H What this Subdivision is about
28.140. Operative provision How to keep odometer records for a car for a period
28.150. Retaining the log book for the retention period
28.155. Retaining odometer records
28.160. Guide to Subdivision 28-J What this Subdivision is about
28.165. Operative provisions Exception for particular cars taken on hire
28.170. Exception for particular cars used in particular ways
28.175. Further miscellaneous exceptions
28.180. Car expenses related to award transport payments
28.185. Application of Subdivision 28-J to PAYE earners and the entities that pay them
36.1. Guide to Division 36 What this Division is about
36.10. How to calculate a tax loss for an income year
36.15. How to deduct tax losses
36.20. Net exempt income
36.25. Special rules about tax losses
36.30. Guide to Subdivision 36-B What this Subdivision is about
36.45. Operative provisions No deduction for tax loss incurred before bankruptcy
36.40. Deduction for amounts paid for debts incurred before bankruptcy
36.45. Limit on deductions for amounts paid
40.1. Guide to Division 40 What this Division is about
40.5. Map of Divisions 40 and 41
40.7. Effect of this Division
40.10. What expenditure qualifies?
40.15. Who may deduct?
40.20. How to work out the deduction
40.25. Disposal, loss, destruction or termination of use: balancing adjustment
40.30. Table of capital allowances
41.1. Guide to Division 41 What this Division is about
41.5. Summary and finding table
41.10. Guide to Common rule 1 What this Common rule is about
41.15. Operative provisions When is roll-over relief available?
41.20. Disposals of property
41.25. How are the balancing adjustment provisions affected?
41.30. What is the effect of the roll-over on the transferor's and transferee's entitlement to a deduction?
41.35. Subsequent applications of this Common rule-relief available even if subsequent transferor got no deduction
41.40. Subsequent disposal-modify the balancing adjustment accordingly
41.45. Commissioner may amend assessment after recoupment despite section 170 of the Income Tax Assessment Act 1936
41.65. Non-arm's length transactions
41.85. You are taken to be owner of property for purposes of certain anti-avoidance provisions
43.1. Guide to Division 43 What this Division is about
43.2. Key concepts used in this Division
43.5. Guide to Subdivision 43-A What this Subdivision is about
43.10. Operative provisions Deductions for capital works
43.15. Amount you can deduct
43.20. Capital works to which this Division applies
43.25. Rate of deduction
43.30. No deduction until construction is complete
43.35. Requirement for body corporate to be registered under the Industry Research and Development Act
43.40. Deduction for destruction of capital works
43.45. Application of Division 41 common rules
43.50. Links and signposts to other parts of the Act Links
43.55. Anti-avoidance-arrangement etc. with tax-exempt entity
43.60. Guide to Subdivision 43-B What this Subdivision is about
43.65. Explanatory material
43.70. Operative provisions What is construction expenditure?
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 Research and Development Board
43.105. Guide to Subdivision 43-C What this Subdivision is about
43.110. Explanatory material
43.115. Operative provisions 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
43.135. Guide to Subdivision 43-D What this Subdivision is about
43.140. Operative provisions Using your area in a deductible way
43.145. Using your area in the 4% manner
43.150. Meaning of industrial activities
43.155. Guide to Subdivision 43-E What this Subdivision is about
43.160. Operative provisions Your area is used for a purpose if it is maintained ready for use for the purpose
43.165. Temporary cessation of use
43.170. Own use-capital works other than hotel and apartment buildings
43.175. Own use-hotel and apartment buildings
43.180. Special rules for hotel and apartment buildings
43.185. Residential or display use
43.190. Use of facilities not commonly provided, and of certain buildings used to operate a hotel, motel or guest house
43.195. Use for research and development activities must be in connection with a business
43.200. Guide to Subdivision 43-F What this Subdivision is about
43.205. Explanatory material
43.210. Operative provisions 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
43.225. Guide to Subdivision 43-G What this Subdivision is about
43.230. Operative provisions Calculating undeducted construction expenditure-common step
43.235. Post-26 February 1992 undeducted construction expenditure
43.240. Pre-27 February 1992 undeducted construction expenditure
43.245. Guide to Subdivision 43-H What this Subdivision is about
43.250. Operative provisions The amount of the balancing deduction
43.255. Amounts received or receivable
43.260. Apportioning amounts received for destruction
165.1. Guide to Division 165 What this Division is about
165.5. Guide to Subdivision 165-A What this Subdivision is about
165.10. Operative provisions To deduct a tax loss
165.12. Company must maintain the same owners
165.13. Alternatively, company must carry on same business
165.15. Same people must control the voting power, or company must carry on same business
165.20. When company can deduct part of a tax loss
165.23. Guide to Subdivision 165-B What this Subdivision is about
165.25. Summary of this Subdivision
165.30. Flow chart showing the application of this Subdivision
165.35. When a company must work out its taxable income and tax loss under this Subdivision On a change of ownership, unless the company carries on the same business
165.37. Who has more than a 50% stake in the company during a period
165.40. On a change of control of voting power in the company, unless the company carries on the same business
165.45. Working out the company's taxable income First, divide the income year into periods
165.50. Next, calculate the notional loss or notional taxable income for each period
165.55. How to attribute deductions to periods
165.60. How to attribute assessable income to periods
165.65. How to calculate the company's taxable income for the income year
165.70. Working out the company's tax loss How to calculate the company's tax loss for the income year
165.75. Special rules that apply if the company is in partnership How to calculate the company's notional loss or notional taxable income for a period when the company was a partner
165.80. How to calculate the company's share of a partnership's notional loss or notional net income for a period if both entities have the same income year
165.85. How to calculate the company's share of a partnership's notional loss or notional net income for a period if the entities have different income years
165.90. Company's full year deductions include a share of partnership's full year deductions
165.150.The primary and alternative tests Who has more than 50% of the voting power in the company during a period
165.155.Who has rights to more than 50% of the company's dividends during a period
165.160.Who has rights to more than 50% of the company's capital distributions during a period
165.165.Rules about the primary test for a condition
165.175.Tests can be satisfied by a single person
165.180.Rules affecting the operation of the tests Arrangements affecting beneficial ownership of shares
165.185.Shares treated as never having carried rights
165.190.Shares treated as always having carried rights
165.195.Disregard redeemable shares
165.200.Rules do not affect totals of shares or rights
165.205.Death of beneficial owner
165.210.The test
166.1. Guide to Division 166 What this Division is about
166.5. How Subdivision 165-A applies to a listed public company
166.10. How Subdivision 165-A applies to a 100% subsidiary of a listed public company
166.15. Companies can choose that this Subdivision is not to apply to them
166.20. How Subdivision 165-B applies to a listed public company
166.25. How to work out the taxable income and tax loss
166.30. How Subdivision 165-B applies to 100% subsidiary of a listed public company
166.35. Companies can choose that this Subdivision is not to apply to them
166.140.Guide to Subdivision 166-D What this Subdivision is about
166.145.Substantial continuity of ownership Substantial continuity of ownership
166.150.The ownership tests Who has more than 50% of the voting power in the listed public company at a particular time
166.155.Who has rights to more than 50% of the listed public company's dividends at a particular time
166.160.Who has rights to more than 50% of the listed public company's capital distributions at a particular time
166.165.Rules affecting the operation of the ownership tests Rules in Division 165 apply
166.215.Guide to Subdivision 166-F What this Subdivision is about
166.220.Special tracing rules for listed public companies Shareholdings of less than 1% in the listed public company
166.225.Shareholdings of less than 1% in an interposed listed public company
166.230.Notional shareholder
166.235.Notional shareholder taken to have minimum voting control, dividend rights and capital rights
166.240.Voting, dividend and capital shareholding of less than 1%
166.245.Shares that are part of a substantial shareholding
166.250.When the rules in this Subdivision do not apply Limit on listed public company splitting its shares into different classes
166.255.If listed public company would not have otherwise passed the ownership tests
166.260.Guide to this Subdivision What this Subdivision is about
166.265.Special tracing rules for listed public companies When fund or special company is taken to control voting power
166.270.When fund or special company is taken to have rights to dividends and capital
170.1. Guide to Subdivision 170-A What this Subdivision is about
170.5. Basic principles for transferring tax losses
170.10. Effect of transferring a tax loss When a company can transfer a tax loss
170.15. Income company is taken to have incurred transferred loss
170.20. Who can deduct transferred loss
170.25. Tax treatment of payment for transferred tax loss
170.30. Conditions for transfer Companies must be in existence and members of the same wholly- owned group
170.35. The loss company
170.40. The income company
170.45. Maximum amount that can be transferred
170.50. Transfer by written agreement
170.55. Losses must be transferred in order they are incurred
170.60. Income company cannot transfer transferred tax loss
170.65. Effect of agreement to transfer more than can be transferred Agreement transfers as much as can be transferred
170.70. Amendment of assessments
175.1. Guide to Division 175 What this Division is about
175.5. When Commissioner can disallow deduction for tax loss
175.10. First case: income injected into company because of available tax loss
175.15. Second case: someone else obtains a tax benefit because of tax loss available to company
175.20. Income injected into company because of available deductions
175.25. Deduction injected into company because of available income
175.30. Someone else obtains a tax benefit because of a deduction or income available to company
175.35. Tax loss resulting from disallowed deductions
175.65. When a person has a shareholding interest in the company
195.1. Guide to Subdivision 195-A What this Subdivision is about
195.5. Working out a PDF's taxable income and tax loss Deductibility of PDF tax losses
195.10. PDF cannot transfer tax loss
195.15. Tax loss for year in which company becomes a PDF
330.1. Guide to Division 330 What this Division is about
330.5. How petroleum mining is treated
330.10. Diagram-the stages of mining
330.15. Deduction for exploration or prospecting expenditure
330.20. Meaning of exploration or prospecting
330.25. Meaning of minerals, petroleum and quarry materials
330.30. Meaning of eligible mining or quarrying operations
330.35. No deduction for amount "transferred" by seller of right or information
330.40. Election that section 330-15 not apply to plant
330.60. Genuine prospector exemption for ordinary income derived from the sale of rights to mine
330.80. Allowable capital expenditure is deductible
330.85. What is allowable capital expenditure?
330.90. Housing and welfare in mining
330.95. Expenditure that is not allowable capital expenditure
330.100.How much is deductible over how long?
330.105.Meaning of unrecouped expenditure
330.110.Expenditure that does not relate to a mining property, quarrying property or petroleum field
330.115.Apportioning between mining and quarrying
330.120.Resuming use of property for qualifying purposes
330.125.Each mining property, quarrying property or petroleum field is separate from any other
330.145.Guide to Subdivision 330-D What this Subdivision is about
330.150.Operative provisions Mining cash bidding payments
330.155.Meaning of mining cash bidding payment and mining authority
330.160.Exploration or prospecting cash bidding payments made when mining authority has been granted
330.165.Meaning of exploration or prospecting cash bidding payment and exploration or prospecting authority
330.170.Exploration or prospecting cash bidding payments made before mining authority has been granted
330.175.Meaning of entitlement to an eligible cash bidding amount
330.180.Transfer of entitlement to an eligible cash bidding amount
330.185.Limit on amount
330.190.Time limit on agreement
330.195.Agreement must be in writing and signed
330.200.When a mining authority is related to an exploration or prospecting authority
330.205.Meaning of retention authority
330.210.When a retention authority is related to an exploration or prospecting authority
330.215.Effect of renewal of authority
330.235.Buyer and seller may agree to include allowable capital expenditure
330.240.Meaning of mining, quarrying or prospecting right and mining, quarrying or prospecting information
330.245.Limit on amount that can be included in the agreement
330.250.Capital expenditure on buildings or other improvements only counts toward the limit if buyer gets rights to them
330.255.Time limit on agreement
330.260.Agreement must be signed and in writing
330.265.Election under subsection 88B(5) of the Income Tax Assessment Act 1936 voids agreement
330.270.Agreement results in seller giving up further deductions
330.275.Apportionment between mining and quarrying
330.295.Guide to Subdivision 330-F What this Subdivision is about
330.300.Operative provisions Limit on amounts deductible under Subdivision 330-C for the income year
330.305.Limit on amounts deductible under Subdivision 330-A for the income year
330.310.Excess amount deductible for the next income year
330.315.Election not to limit amounts deductible under Subdivision 330-A or 330-C
330.320.Excess amount not deductible for certain property
330.325.Excess amount not deductible if specified in a section 330- 235 agreement
330.330.Excess amount set off against income exempt under section 330-60
330.350.Payments of petroleum resource rent tax
330.370.Transport capital expenditure is deductible
330.375.Meaning of transport capital expenditure
330.380.Meaning of transport facility and public body
330.385.Meaning of mining or quarrying transport
330.390.Meaning of processed materials, treatment and concentration
330.395.How much is deductible over how long?
330.400.What if you stop using property for mining or quarrying transport?
330.405.Resuming use of property for mining or quarrying transport
330.410.Apportionment between mining and quarrying
330.415.No double deductions for port or other ship facility
330.435.Deduction for expenditure on rehabilitation
330.440.Meaning of rehabilitation
330.445.Meaning of ancillary activities and eligible building site
330.450.No deduction for certain expenditure
330.455.Property used for rehabilitation taken to be used for the purpose of producing assessable income
330.475.Guide to Subdivision 330-J What this Subdivision is about
330.480.Operative provisions When a balancing adjustment is required
330.485.How to do the adjustment
330.490.Meaning of termination value
330.495.Meaning of written down value
330.500.What if there is a disposal of part of an interest in property?
330.520.Partial change of ownership
330.540.Which Common rules apply
330.545.Modification to Common rule 1 (Roll-over relief for related entities)
330.547.Roll-over relief
330.550.Transferee inherits certain characteristics from transferor
330.555.Leases: subsection 88B(5) of the Income Tax Assessment Act 1936 election has no effect
330.560.Modification to Common rule 2 (Non-arm's length transactions)
330.580.Guide to Subdivision 330-M What this Subdivision is about
330.585.Operative provisions Recoupment of capital expenditure
330.590.Deductions under this Division take priority over other deductions
330.595.Mining, quarrying or prospecting-getting someone else to do the work
330.600.No deduction for petroleum income sharing
330.605.No deduction for paying transferees or sub-lessees of mining, quarrying or prospecting rights
375.800.Guide to Subdivision 375-G What this Subdivision is about
375.805.Operative provisions Does your tax loss have a film component?
375.810.What is a film loss?
375.815.Deductibility of film losses
375.820.Order in which tax losses are to be deducted
750.1. What this Part is about
750.5. What instalments of income tax do you have to pay?
750.10. Instalments collected periodically
750.15. Instalments collected in respect of particular transactions
750.20. What happens if your income tax is less than the instalments you have paid? How do you get a refund?
765.1. Guide to Division 765 What this Division is about
765.5. Where to find the rules about the withholding tax
766.1. Guide to Division 766 What this Division is about
766.5. Where to find the rules about the withholding tax
767.1. Guide to Division 767 What this Division is about
767.5. Where to find the rules about the tax
768.1. Guide to Division 768 What this Division is about
768.5. Where to find the rules about the withholding tax
785.1. Guide to Division 785 What this Division is about
785.5. Where to find the rules about Medicare levy
786.1. Guide to Division 786 What this Division is about
786.5. Where to find the rules about repaying HECS contributions
900.1. Guide to Division 900 What this Division is about
900.5. Application of the requirements of Division 900
900.10. Substantiation requirement
900.12. Application of Division 900 to PAYE earners and the entities that pay them
900.15. Getting written evidence
900.20. Keeping travel records
900.25. Retaining the written evidence and travel records
900.30. Meaning of work expense
900.35. Exception for small total of expenses
900.40. Exception for laundry expenses below a certain limit
900.45. Exception for work expense related to award transport payment
900.50. Exception for domestic travel allowance expenses
900.55. Exception for overseas travel allowance expenses
900.60. Exception for reasonable overtime meal allowance
900.65. Crew members on international flights need not keep travel records
900.70. Getting written evidence
900.75. Retaining the written evidence and odometer records
900.80. Getting written evidence
900.85. Keeping travel records
900.90. Retaining the written evidence and travel records
900.95. Meaning of business travel expense
900.100.Guide to Subdivision 900-E What this Subdivision is about
900.105.Operative provisions Ways of getting written evidence
900.110.Time limits
900.115.Written evidence from supplier
900.120.Written evidence of depreciation expense
900.125.Evidence of small expenses
900.130.Evidence of expenses considered otherwise too hard to substantiate
900.135.Evidence on a group certificate
900.140.Guide to Subdivision 900-F What this Subdivision is about
900.145.Purpose of a travel record
900.150.Operative provisions Recording activities in travel records
900.155.Showing which of your activities were income-producing activities
900.160.Guide to Subdivision 900-G What this Subdivision is about
900.165.The retention period
900.170.Operative provisions Extending the retention period if an expense is disputed
900.175.Commissioner may tell you to produce your records
900.180.How to comply with a notice
900.185.What happens if you don't comply
900.195.Commissioner's discretion to review failure to substantiate
900.200.Reasonable expectation that substantiation would not be required
900.205.What if your documents are lost or destroyed?
900.210.Guide to Subdivision 900-I What this Subdivision is about
900.215.Operative provisions Deducting an expense related to an award transport payment
900.220.Definition of award transport payment
900.225.Substituted industrial instruments
900.230.Changes to industrial instruments applied for before 29 October 1986
900.235.Changes to industrial instruments solely referable to matters in the instrument
900.240.Deducting in anticipation of receiving award transport payment
900.245.Effect of exception in this Subdivision on exception for small total of expenses
900.250.Effect of exception in this Subdivision on methods of calculating car expense deductions
909.1. Regulations
950.100. What forms part of this Act
950.105.What does not form part of this Act
950.150.Guides, and their role in interpreting this Act
960.100.Entities
960.220.Meaning of trading
960.225.Abnormal trading
960.230.Abnormal trading-5% of shares or units in one transaction
960.235.Abnormal trading-suspected 5% of shares or units in a series of transactions
960.240.Abnormal trading-suspected acquisition or merger
960.245.Abnormal trading-20% of shares or units traded over 60 day period
975.100.When a company is in existence
975.150.Position to affect rights in relation to a company
975.500.Wholly-owned groups
975.505.What is a 100% subsidiary?
995.1. Definitions
(Assented to 17 April 1997)
