INCOME TAX ASSESSMENT ACT 1997 No. 38 of 1997 - SECT 26.55 Limit on deductions

INCOME TAX ASSESSMENT ACT 1997 No. 38 of 1997 - SECT 26.55

(1) There is a limit on the total of the amounts you can deduct for the income
year under these provisions of the Income Tax Assessment  Act 1936 :

   (a)  section 78 (Deductions for gifts, pensions etc.);

   (b)  section 78B (Promoters recoupment tax);

   (c)  Subdivision B (Development allowance) of Division 3 of Part III, so
        far as it provides for deductions by a *leasing company;

   (d)  section 82AAT (Deductions for superannuation contributions by eligible
        persons);

   (e)  Division 3 of Part XII (Drought investment allowance), so far as it
        provides for deductions by a *leasing company. Do not include in the
        total an amount that you could also deduct under another provision of
        this Act, apart from section 8-10 (which prevents double deductions).

(2) The limit is worked out by subtracting from your assessable income all
your deductions except:

   (a)  *tax losses; and See Division 36 (which is about tax losses of earlier
        income years).

   (b)  amounts you can deduct under:
. Subdivision 330-A (Exploration and prospecting); or
. Subdivision 330-C (Development and operation of a mine or quarry); and

   (c)  amounts you have deposited in terms of Division 16C (Income
        equalisation deposits) of Part III of the Income Tax Assessment Act 
        1936 .

[The next Division is Division 28.]