Commonwealth Numbered Acts

INCOME TAX ASSESSMENT ACT 1997 No. 38 of 1997 - SECT 4.15

(1) Work out your taxable income for the income year like this:
taxable income = assessable income - deductions Method statement Step 1. Add
up all your assessable income for the income year. To find out about your
assessable income, see Division 6. Step 2. Add up your deductions for the
income year. To find out what you can deduct, see Division 8. Step 3. Subtract
your deductions from your assessable income (unless they exceed it). The
result is your taxable income. (If the deductions equal or exceed the
assessable income, you don't have a taxable income.) Note: If the deductions
exceed the assessable income, you may have a tax loss which you may be able to
deduct in a later income year: see Division 36.

(2) There are cases where taxable income is worked out in a special way:
Item    For this case ...               See:

1.      A company does not maintain continuity of ownership and

control during the income year and does not continue to
carry on the same business
Subdivision 165-B
2.      A company becomes a PDF (pooled development fund) during the

income year, and the PDF component for the income year is a
        nil amount                      section 124ZTA of the

Income Tax Assessment Act 1936
3.      A shipowner or charterer:

. has its principal place of business outside Australia; and
. carries passengers, freight or mail shipped in Australia
section 129 of the Income Tax
Assessment Act 1936
4.      An insurer who is not an Australian resident enters into

insurance contracts connected with Australia
sections 142 and 143 of the
Income Tax Assessment Act 1936
5.      The Commissioner makes a default or special assessment of

        taxable income                  sections 167 and 168 of the

Income Tax Assessment Act 1936