C2006c00472vol01 PDF
C2006c00472vol01 PDF
C2006c00472vol01 PDF
Part 1-1—Preliminary 1
Division 1—Preliminary 1
1-1 Short title [see Note 1].......................................................................1
1-2 Commencement.................................................................................1
1-3 Differences in style not to affect meaning .........................................1
1-2 Commencement
This Act commences on 1 July 1997.
Section 2-1
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 2-5
Core
Provisions
Checklists
General Provisions
Specialist Groupings
(examples only)
Administration
Dictionary of terms and concepts
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 2-10
(3) The following basic terms used throughout the Act are not
identified with an asterisk. They fall into 2 groups:
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 2-20
Core concepts
2-25 Purposes
Two main purposes of the numbering system in this Act are:
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 2-30
For example, the number of Part 2-15 indicates that the Part is in
Chapter 2. Similarly, the number of section 165-70 indicates that the
section is in Division 165.
2-40 Guides
The first is the “Guides”. A Guide consists of sections under a
heading indicating that what follows is a Guide to a particular
Subdivision, Division etc.
Guides form part of this Act but are kept separate from the
operative provisions. In interpreting an operative provision, a
Guide may only be considered for limited purposes. These are set
out in section 950-150.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 2-45
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*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 3-1
(2) Most entities have to pay instalments of income tax before the
income tax they actually have to pay can be worked out.
(3) This Act answers these questions:
1. What instalments of income tax do you have to pay? When
and how do you pay them?
See Schedule 1 to the Taxation Administration Act 1953.
2. How do you work out how much income tax you must pay?
See Division 4, starting at section 4-1.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 3-10
Section 3-15
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 4-1
4-10 How to work out how much income tax you must pay
(1) You must pay income tax for each year ending on 30 June, called
the financial year.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 4-10
(3) Work out your income tax for the *financial year as follows:
⎛ ⎞
Income tax = ⎜ Taxable income × Rate ⎟ – Tax offsets
⎝ ⎠
Method statement
Step 1. Work out your taxable income for the income year.
Step 2. Work out your basic income tax liability on your taxable
income using:
(a) the income tax rate or rates that apply to you for
the income year; and
(b) any special provisions that apply to working out
that liability.
See the Income Tax Rates Act 1986 and section 4-25.
Step 3. Work out your tax offsets for the income year. A tax
offset reduces the amount of income tax you have to pay.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 4-15
Step 4. Subtract your *tax offsets from your basic income tax
liability. The result is how much income tax you owe for
the *financial year.
Note: Division 63 explains what happens if your tax offsets exceed your
basic income tax liability. How the excess is treated depends on the
type of tax offset.
Method statement
Step 1. Add up all your assessable income for the income year.
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:
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 4-25
4-25 Special provisions for working out your basic income tax
liability
Subsection 392-35(3) may increase your basic income tax liability
beyond the liability worked out simply by applying the income tax
rates to your taxable income.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 4-25
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 6-1
Operative provisions
6-5 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
6-23 Non-assessable non-exempt income
6-25 Relationships among various rules about ordinary income
Assessable income
Non-assessable
non-exempt income
Exempt income
Section 6-5
Operative provisions
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 6-10
(2) Amounts that are not *ordinary income, but are included in your
assessable income by provisions about assessable income, are
called statutory income.
Note 1: Although an amount is statutory income because it has been included
in assessable income under a provision of this Act, it may be made
exempt income or non-assessable non-exempt income under another
provision: see sections 6-20 and 6-23.
Note 2: Many provisions in the summary list in section 10-5 contain rules
about ordinary income. These rules do not change its character as
ordinary income.
(3) If an amount would be *statutory income apart from the fact that
you have not received it, it becomes statutory income as soon as it
is applied or dealt with in any way on your behalf or as you direct.
(4) If you are an Australian resident, your assessable income includes
your *statutory income from all sources, whether in or out of
Australia.
(5) If you are a foreign resident, your assessable income includes:
(a) your *statutory income from all *Australian sources; and
(b) other *statutory income that a provision includes in your
assessable income on some basis other than having an
*Australian source.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 6-20
• the amount may be taken into account in working out the amount
of a tax loss (see section 36-10);
(2) *Ordinary income is also exempt income to the extent that this Act
excludes it (expressly or by implication) from being assessable
income.
(3) By contrast, an amount of *statutory income is exempt income only
if it is made exempt from income tax by a provision of this Act
outside this Division or another *Commonwealth law.
(4) If an amount of *ordinary income or *statutory income is
*non-assessable non-exempt income, it is not exempt income.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 6-23
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 8-1
Division 8—Deductions
Table of sections
8-1 General deductions
8-5 Specific deductions
8-10 No double deductions
(2) However, you cannot deduct a loss or outgoing under this section
to the extent that:
(a) it is a loss or outgoing of capital, or of a capital nature; or
(b) it is a loss or outgoing of a private or domestic nature; or
(c) it is incurred in relation to gaining or producing your *exempt
income or your *non-assessable non-exempt income; or
(d) a provision of this Act prevents you from deducting it.
For a summary list of provisions about deductions, see section 12-5.
(3) A loss or outgoing that you can deduct under this section is called a
general deduction.
For the effect of the GST in working out deductions, see Division 27.
Note If you receive an amount as insurance, indemnity or other recoupment
of a loss or outgoing that you can deduct under this section, the
amount may be included in your assessable income: see
Subdivision 20-A.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 8-5
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 9-1A
Section 9-5
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 9-5
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 9-5
(2) For entities covered by an item in the table in subsection (1), the
income year is the same as the *financial year, except in these
cases:
(a) for a company, or an entity covered by item 2 or 3 in the
table, the income year is the previous financial year;
(b) if an entity has an accounting period that is not the same as
the financial year, each such accounting period or, for a
company, each previous accounting period is an income year.
Note 1: The Commissioner can allow an entity to adopt an accounting period
ending on a day other than 30 June. See section 18 of the Income Tax
Assessment Act 1936.
Note 2: An accounting period ends, and a new accounting period starts, when
a partnership becomes, or ceases to be, a VCLP, an AFOF or a
VCMP. See section 18A of the Income Tax Assessment Act 1936.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 10-1
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 10-5
avoidance of tax
general ............................................................................... 177F
diversion of income ........................................................... 121H
profits shifted out of Australia ........................................... 136AD, 136AE
see also transfers of income
bad debts
see recoupment
balancing adjustment
see capital allowances, industrial property, investments,
research & development, scientific research and tax
exempt entities
banking
offshore banking activities, income from .......................... 121EG(1)
offshore banking unit, deemed interest on payments to
by owner ...................................................................... 121EK
barter transactions
............................................................................................ 21, 21A, 26(e)
beneficiaries
see trusts
benefits
business, non-cash ............................................................. 21A
consideration, non-cash ..................................................... 21
meals you provide in an in-house dining facility ............... 32-70
see also employment and superannuation
bonus shares
see shares
bounties
............................................................................................ 15-10
capital allowances
excess of termination value over adjustable value
generally ............................................................ 40-285
for some cars...................................................... 40-370
depreciating asset in low-value pool .................................. 40-445(2)
expenditure in software development pool......................... 40-460
recovery of petroleum resource rent tax ............................. 40-750(3)
capital gains
...................................................................................... 102-5
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 10-5
Section 10-5
death
see trusts
debt/equity swap
see shares and units
defence forces
allowances and benefits for service as a member of .......... 26(ea)
depreciation
see capital allowances
development allowance
partnership property acquired under a pre-27 February
1992 contract ............................................................... 82AHA(5), (6)
partnership which claimed a development allowance
deduction, disposal of interest in ................................. 82AJ
see also recoupment
directors
excessive remuneration or retirement payment from
company ....................................................................... 109
distributions
see dividends
dividends
benefit of LIC capital gain through a trust or partnership 115-280
......................................................................................
general ...............................................................................
44(1)
distribution from a controlled foreign corporation ............ 47A(1)
foreign taxes on, grossing up of .........................................
6AC
franked dividends, credits on..............................................
207-20(1),
207-35(1),
207-35(3)
repayments of foreign income tax deducted from ............. 26A
see also liquidation
drought investment allowance
partnership which claimed drought investment
allowance deduction, disposal of interest in ................ 656
see also recoupment
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 10-5
elections
local government, reimbursement of expenses of .............. 74A(4)
see also recoupment
electricity connections
see recoupment
eligible termination payments (ETPs)
...................................................................................... 27A to 27H
employees
see shares
employment
allowances and benefits in relation to employment or
rendering services ........................................................ 26(e), 26(ea)
return to work payments .................................................... 15-3
see also accrued leave transfer payments, eligible
termination payments and leave payments
environment
see recoupment
farm management deposits
repayments of .................................................................... 393-1 of
Schedule 2G
FIFs
see foreign investment funds
films
Australian, proceeds of investment in ............................... 26AG
foreign exchange
gains .................................................................................. 775-15
see also recoupment
foreign investment funds (FIFs)
attributable income of ........................................................ 529
foreign tax paid in respect of a foreign investment fund
attribution account payment ......................................... 26D
see also taxes
forestry agreement
amount where section 82KZMG of the 1936 Act applies .. 15-45
franked dividends
see dividends
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 10-5
funeral policy
benefit under....................................................................... 15-55
general insurance
gross premiums................................................................... 321-45 of
Schedule 2J
reduction in value of outstanding claims liability............... 321-10 and 323-5
of Schedule 2J
reduction in value of unearned premium reserve ............... 321-50 of
Schedule 2J
grapevines
see recoupment
horticultural plants
see recoupment
improvements
see leases
imputation
see dividends
income equalisation deposits
withdrawals from ............................................................... 159GD
indemnity
see compensation and recoupment
industrial property
consideration for disposal of unit relating to copyright in
Australian film .............................................................. 124P
see also intellectual property and research and
development
infrastructure borrowings
see interest
insurance
bonuses .............................................................................. 26(i), 26AH
company, demutualisation of ............................................. 121AT
foreign life assurance policy .............................................. 529
life assurance, transfer of contributions by
superannuation fund or approved deposit fund to ........ 275
payments from a non-resident reinsurer in respect
of a loss ........................................................................ 148
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 10-5
Section 10-5
leases
amounts received by lessor from lessee for
non-compliance with lease obligation to repair ............ 15-25
crown leases used for primary production, assignment
of .................................................................................. 88A(3)
improvements made by lessee to land ............................... 87
interest component of payments under non-leveraged
finance leases ............................................................... 159GK
partnership leasing property under non-leveraged
finance lease, new partner or contribution of capital
since 14 May 1985 ....................................................... 159GO
premiums on old leases ..................................................... 84
premiums relating to assignment of a lease granted
before 20 September 1985 ............................................ 26AB
profit on disposal of previously leased motor vehicles ...... Subdivision 20-B
leases of luxury cars
accrual amounts.................................................................. Schedule 2E
(42A-35(1))
adjustment amounts (lessee)............................................... Schedule 2E
(42A-70(2))
adjustment amounts (lessor) ............................................... Schedule 2E
(42A-65(2))
profit on actual sale ............................................................ Schedule 2E
(42A-35(3))
profit on notional sale......................................................... Schedule 2E
(42A-35(2))
leave payments
accrued leave transfer payment ......................................... 15-5
annual leave, received in lieu of retirement or
termination ................................................................... 26AC
long service leave, received in lieu of retirement or
termination ................................................................... 26AD
life insurance companies Subdivision 320-B
limited recourse debt
excessive deduction amount (debtor) ................................. 243-40
excessive deduction amount (partner) ................................ 243-65
liquidation
distribution to a shareholder in winding up a company...... 47(1)
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 10-5
live stock
death or destruction of ....................................................... Subdivision 385-E
departing Australia and ...................................................... 385-160, 385-163
insolvency, and .................................................................. 385-160, 385-163
profits on death or disposal of ........................................... Subdivision 385-E,
385-160
see also compensation and trading stock
long service leave
see leave payments
losses
see compensation
lotteries
see investments
meals
see benefits
Mining
providing mining, quarrying or prospecting information .. 15-40
minors
see child
motor vehicles
see car expenses and leases
mutual insurance
see insurance
non-cash benefits
see benefits and employment
notional sales and loans
adjustment amounts (lessee)............................................... 240-110(2)
adjustment amounts (lessor) ............................................... 240-105(2)
notional interest .................................................................. 240-35(1)
profit on actual sale ............................................................ 240-35(3)
profit on notional sale......................................................... 240-35(2)
offshore banking units
see banking
partnerships
net income of, partner’s interest in .................................... 92(1)
uncontrolled partnership income, effect of ........................ 94
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 10-5
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 10-5
reimbursements
see car expenses, dividends, elections, petroleum and
recoupment
reinsurance
see insurance
research & development
consideration for loss or disposal etc. of plant, assets or
buildings used for ........................................................ 73B(23) to (27C),
73BF, 73BM,
73G(4)
return on ............................................................................ 73B(27A), (27C),
73BF(4), (6),
73BM(4), (6)
transferee of property used for, effect of disposal or
change of use by .......................................................... 73F(10)
residual value
see industrial property
retirement payments
see directors, leave payments and shareholders
rights to income
see transfers of income
roads
see timber
royalties
............................................................................................ 15-20
schemes
see avoidance of tax
scholarship plan
benefit under....................................................................... 15-60
scientific research
consideration for disposal or destruction of buildings
acquired for scientific research .................................... 73A(4)
securities
see investments
services
see co-operative companies, employment, loans and
trusts
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 10-5
shareholders
excessive remuneration or retirement payment from
company ....................................................................... 109
loans, payments and credits from company ....................... 108, Division 7A
of Part III
see also dividends
shares
acquired in a debt/equity swap, profit on the disposal
cancellation or redemption of ...................................... 63E(4)
bonus shares, cost of .......................................................... 6BA
buy-backs .......................................................................... 159GZZZJ to
159GZZZT
employee share acquisition schemes ................................. 26AAC, 139 to
139GH
holding company shares held by a subsidiary,
cancellation of .............................................................. 159GZZZC to
159GZZZI
small-medium enterprise, profit on disposal of shares in .. 128TG to 128TL
see also dividends
shipping
goods shipped in Australia, amounts paid to foreign
shipowners and charterers for ...................................... 129
small-medium enterprises (SMEs)
see shares
subsidies
............................................................................................ 15-10
sugar industry exit grants
............................................................................................ 15-65
superannuation
benefits received from older superannuation funds ........... 26AF, 26AFA,
26AFB
complying fund becomes non-complying, effect of .......... 288A
contributions to a superannuation fund ............................. 278, 281, 286, 288
contributions to an approved deposit fund ......................... 289, 290, 294, 295
non-resident fund becoming resident, effect of ................. 288B
payments and benefits from a fund .................................... 82AAQ
trustee’s liability to pay tax ............................................... 278, 286, 289,
294, 296
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 10-5
Section 10-5
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 11-1A
11-1 Overview
Ordinary income or statutory income which is exempt from income
tax can be divided into 3 main classes:
(a) ordinary or statutory income of entities that are exempt, no
matter what kind of ordinary or statutory income they have
(see table in section 11-5);
(b) ordinary or statutory income which is exempt, no matter
whose it is (see table in section 11-10);
(c) ordinary or statutory income which is exempt only if it is
*derived by certain entities (see table in section 11-15).
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 11-5
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 11-10
dividends or shares
pooled development fund company dividend .................... 124ZM
pooled development fund company shares, income from
sale of ........................................................................... 124ZN
financial transactions
infrastructure borrowings, income in relation to ............... 159GZZZZE
pooled development fund company dividends ................... 124ZM
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 11-15
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 11-15
Section 11-15
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 11-15
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 11-15
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 11-15
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 11-50
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 11-55
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 11-55
securities
securities acquired at a discount on or before 30 June 1982, 23J
amount received on sale or redemption of ....................
special bond, amount received on redemption of ............... 23E
small business assets
income arising from CGT event, company or trust owned
asset continuously for 15 years ..................................... 152-110(2)
social security or like payments
older Australians, bonus payments made to ....................... 59-5
tax loss transfers
consideration received by loss company from income
company, generally ....................................................... 170-25(1)
consideration received by loss company from income
company, net capital loss .............................................. 170-125(1)
temporary residents
see foreign aspects of income taxation
trading stock
disposal outside ordinary course of business, amounts
received upon................................................................ 70-90(2)
trusts
attributable income, amounts representing ......................... 99B(2A)
family trust distribution tax, amounts subject to................. 271-105(3) in
Schedule 2F
windfall amounts
business franchise fees, refund of when invalid ................. 59-20
State tax on Commonwealth place, refund of when invalid 59-25
withholding taxes
see foreign aspects of income taxation and mining
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 12-1
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 12-5
balancing adjustment
see buildings, capital allowances, industrial property,
research & development and tax exempt entities
banks
Commonwealth Savings Bank of Australia ....................... 160ABB
foreign banks, Australian branches of ................................ 160ZZVA to
160ZZZJ
boats
no deduction for ................................................................. 26-50
see also capital allowances
borrowing expenses
....................................................................................... 25-25
bribes to foreign public officials ................................................. 26-52
bribes to public officials .............................................................. 26-53
buildings
income producing buildings, capital allowances ................ Division 43
see also heritage conservation work
capital allowances
generally ............................................................................. Division 40
balancing adjustments ........................................................ 40-285(2), 40-370
business related costs ......................................................... 40-880
electricity and telephone lines ............................................ 40-645
environmental protection activities .................................... 40-755
exploration or prospecting ................................................. 40-80(1), 40-730
in-house software ............................................................... 40-335, 40-455
intellectual property ........................................................... Subdivision 40-B
IRUs ................................................................................... Subdivision 40-B
landcare operations ............................................................ 40-630
low-value and software development pools ....................... Subdivision 40-E
mining and quarrying ......................................................... Subdivision 40-H
and
Subdivision 40-I
Petroleum Resource Rent Tax ............................................ 40-750
project pools ....................................................................... 40-830, 40-832
reducing deductions ........................................................... 40-25, 40-290
spectrum licences ............................................................... Subdivision 40-B
telecommunications site access rights ................................ Subdivision 40-B
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 12-5
Section 12-5
Section 12-5
Section 12-5
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 12-5
Section 12-5
Section 12-5
investment company
see shares
IRUs
see capital allowances
land degradation
see primary production
lease document expenses
....................................................................................... 25-20
leases
finance leases and arrangements, use of property if
end-user an exempt public body or use outside
Australia to produce exempt income ............................ 159GE to 159GO
improvements on leased land and premiums, leases
assigned or surrendered before 23 October 1964 and
for mining leases assigned or surrendered before
10 May 1968 ................................................................. 83 to 89, 88A(3)
payment for failure to comply with lease obligation to
repair premises .............................................................. 25-15
leveraged arrangements, property used:
• other than to produce assessable income; or
• by a non-resident outside Australia; or
•
by a previous owner
....................................................................................... 51AD
leases of luxury cars
accrual amounts .................................................................. Schedule 2E
(42A-50)
adjustment amounts (lessee) ............................................... Schedule 2E
(42A-70(1))
adjustment amounts (lessor)................................................ Schedule 2E
(42A-65(3))
lease payments not deductible............................................. Schedule 2E
(42A-55)
payments to acquire car not deductible ............................... Schedule 2E
(42A-85 and
42A-100)
leave payments
accrued leave transfer payments ........................................ 26-10
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 12-5
Section 12-5
Section 12-5
Section 12-5
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 12-5
subscriptions to associations
....................................................................................... 25-55
substantiation
work, travel and car expenses ............................................ Division 900
successive deductions
setting off deductions where more than one class of
income .......................................................................... 49
superannuation
see insurance and annuity business and interest
superannuation and related business
generally ............................................................................. 267 to 315F
asset disposals .................................................................... 304
death or disability benefits, deduction for future service
element ......................................................................... 279B
death or disability cover, premiums for ............................. 279
detriment payments ............................................................ 279D
financial assistance levy ..................................................... 315B, 315F
superannuation contributions surcharge
no deduction ....................................................................... 26-60
superannuation—eligible person contributions
general ................................................................................ 82AAS to 82AAT
limit on deduction .............................................................. 26-55
superannuation—employer contributions
generally ............................................................................. 82AAA to 82AAR
contributions to eligible superannuation fund for
employees ..................................................................... 82AAC
contributions to non-complying funds ............................... 82AAD, 26-75
deposits under the Small Superannuation Accounts Act
1995 .............................................................................. 82AAF
no deduction for under any other provision of the Act ...... 82AAR
superannuation guarantee charge
no deduction for ................................................................. 51(9)
late contribution offset, no deduction for ........................... 26-85
superannuation levy
late lodgment amount, no deduction for ............................. 51(8)
tax agent’s fees
see tax related expenses
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 12-5
Section 12-5
theft
by employee or agent .......................................................... 25-45
thin capitalisation
disallowing of deductions ................................................... Division 820
timber
death of owner of land carrying trees, deduction of the
part of land cost attributable to trees ............................. 70-120
disposal of land carrying trees, deduction of the part of
land cost attributable to trees......................................... 70-120
felling trees, deduction of cost of land attributable to
trees felled or of cost of right to fell trees...................... 70-120
see also capital allowances
trading ships
see capital allowancesn
trading stock
Commissioner may determine whether consideration
paid for chose in action is reasonable ........................... 52A
excess of opening stock over closing value ....................... 70-35(3)
expenditure deemed not to be of a capital nature ............... 70-25
prepayments, when stock becomes trading stock on
hand .............................................................................. 70-15
see also tax avoidance schemes and timber
traditional securities
see securities
training guarantee
training guarantee charge, no deduction for ....................... 51(7)
transfer pricing
generally ............................................................................. 136AA to 136AG
adjustments to deductions .................................................. 136AF
transport expenses
incurred in travel between workplaces ............................... 25-100
travel expenses
accompanying relatives, no deduction for some travel
expenses ....................................................................... 26-30
see also substantiation
trusts
trust income, deductions considered in calculating ............ 95 to 102
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 12-5
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 13-1A
Section 13-1
Section 13-1
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 13-1
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 13-1
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 13-1
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 15-1
This Division sets out some items that are included in your
assessable income. Remember that the general rules about
assessable income in Division 6 apply to these items.
Table of sections
Operative provisions
15-3 Return to work payments
15-5 Accrued leave transfer payments
15-10 Bounties and subsidies
15-15 Profit-making undertaking or plan
15-20 Royalties
15-22 Payments made to members of a copyright collecting society
15-25 Amount received for lease obligation to repair
15-30 Insurance or indemnity for loss of assessable income
15-35 Interest on overpayments and early payments of tax
15-40 Providing mining, quarrying or prospecting information
15-45 Amounts paid under forestry agreements
15-50 Work in progress amounts
15-55 Certain amounts paid under funeral policy
15-60 Certain amounts paid under scholarship plan
15-65 Sugar industry exit grants
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 15-3
Operative provisions
15-20 Royalties
(1) Your assessable income includes an amount that you receive as or
by way of royalty within the ordinary meaning of “royalty”
(disregarding the definition of royalty in subsection 995-1(1)) if the
amount is not assessable as *ordinary income under section 6-5.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 15-22
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 15-35
Section 15-55
Section 15-65
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 17-1
This Division sets out the effect of the GST in working out
assessable income. Generally speaking, GST, input tax credits and
adjustments under the GST Act are disregarded.
Table of sections
17-5 GST and increasing adjustments
17-10 Certain decreasing adjustments
17-15 Elements in calculation of amounts
17-20 GST groups and GST joint ventures
17-25 GST attributable because of the GST Transition Act
17-30 Special credits because of indirect tax transition
17-35 Certain sections not to apply to certain assets or expenditure
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 17-15
(2) However, the amount is not assessable income to the extent that,
because it becomes a component of a *net input tax credit, a
reduction is made under section 103-30 (reduction of cost base etc.
by net input tax credits).
Section 17-30
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 20-1
Guide to Division 20
Table of sections
20-5 Other provisions that reverse the effect of deductions
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 20-5
Section 20-10
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 20-15
Table of sections
20-15 How to use this Subdivision
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 20-20
Exclusion
(1) An amount is not an assessable recoupment to the extent that it is
*ordinary income, or it is *statutory income because of a provision
outside this Subdivision.
Insurance or indemnity
(2) An amount you have received as *recoupment of a loss or outgoing
is an assessable recoupment if:
(a) you received the amount by way of insurance or indemnity;
and
(b) you can deduct an amount for the loss or outgoing for the
*current year, or you have deducted or can deduct an amount
for it for an earlier income year, under any provision of this
Act.
Other recoupment
(3) An amount you have received as *recoupment of a loss or outgoing
(except by way of insurance or indemnity) is an assessable
recoupment if:
(a) you can deduct an amount for the loss or outgoing for the
*current year; or
(b) you have deducted or can deduct an amount for the loss or
outgoing for an earlier income year;
under a provision listed in section 20-30.
General
(1) Recoupment of a loss or outgoing includes:
(a) any kind of recoupment, reimbursement, refund, insurance,
indemnity or recovery, however described; and
(b) a grant in respect of the loss or outgoing.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 20-25
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 20-30
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 20-30
(2) This table shows the deductions under the Income Tax Assessment
Act 1936 for which recoupments are assessable.
Note: References are to section numbers except where otherwise indicated.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 20-30
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 20-35
(b) you have deducted or can deduct the whole of the loss or
outgoing for an earlier income year.
Note 1: The operation of this section may be affected if a balancing charge has
been included in your assessable income because of a deduction for
the loss or outgoing: see section 20-45.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 20-40
Note 2: Recoupment of a loss or outgoing for which you can deduct amounts
over more than one income year is covered by section 20-40.
Note 3: Recoupment of a loss or outgoing that is only partially deductible is
covered by section 20-50.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 20-40
Method statement
Step 1. Add up all the *assessable recoupments of the loss or
outgoing that you have received (in the *current year or
earlier). The result is the total assessable recoupment.
Step 2. Add up the amounts (if any) included in your assessable
income for earlier income years, in respect of the loss or
outgoing, by this section or a *previous recoupment law.
The result is the recoupment already assessed. (If no
amount was included, the recoupment already assessed
is nil.)
Step 3. Subtract the recoupment already assessed from the total
assessable recoupment. The result is the unassessed
recoupment.
Step 4. Add up each amount that you can deduct for the loss or
outgoing for the *current year, or you have deducted or
can deduct for the loss or outgoing for an earlier income
year. The result is the total deductions for the loss or
outgoing.
Note: The total deductions may be reduced if an amount has
been included in your assessable income because of a
balancing adjustment: see section 20-45.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 20-45
Example: At the start of the 2002-03 income year, a company incurs $100,000 to
start to hold a depreciating asset. The company uses the prime cost
method, and the effective life is 10 years. $10,000 is deductible for the
2002-03 income year and for each of the following 9 income years
under section 40-25.
In the 2002-03 income year, the company receives $20,000 as
recoupment. How much is assessable for the 2002-03 income year?
Applying the method statement:
After step 1: the total assessable recoupment is $20,000.
After step 2: the recoupment already assessed is nil.
After step 3: the unassessed recoupment is:
total assessable recoupment minus recoupment already assessed,
i.e. $20,000 minus 0 = $20,000.
After step 4: the total deductions for the loss or outgoing are $10,000.
After step 5: the outstanding deductions are:
total deductions for the loss or outgoing minus recoupment already
assessed, i.e. $10,000 minus 0 = $10,000.
After step 6: the unassessed recoupment (step 3) is greater than
outstanding deductions (step 5), so the amount of the outstanding
deductions is included in assessable income, i.e. $10,000.
Applying the method statement to the 2003-04 income year: a further
$10,000 is included in the company’s assessable income.
Section 20-45
Section 20-50
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 20-60
20-60 If you are the only entity that can deduct an amount for the
loss or outgoing
This Subdivision applies in a different way if:
(a) an entity (other than you) incurs a loss or outgoing; and
(b) you can deduct the whole of the loss or outgoing for an
income year, or you can deduct amounts for the loss or
outgoing over 2 or more income years; and
(c) no other entity can deduct an amount for the loss or outgoing;
and
(d) the entity that incurred the loss or outgoing receives one or
more amounts as *recoupment of the loss or outgoing.
This Subdivision (except this section and section 20-65) applies as
if you had incurred the loss or outgoing and had also received the
*recoupment.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 20-65
Section 20-100
Table of sections
20-105 Map of this Subdivision
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 20-100
Successive leases
20-130 Successive leases
Miscellaneous rules
20-145 No amount included if you inherited the car
20-150 Reducing the amount to be included if another provision requires you to
include an amount for the disposal
20-155 Exception for particular cars taken on hire
20-157 Exception for STS taxpayers
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 20-105
Subdivision 20-B
Section 20-100 gives
you the main idea Disposal of a leased car for profit
of this Subdivision
This Subdivision It applies when you lease the car, It is more complicated than the
applies in 2 acquire it and then dispose of it: usual case because it may involve
different cases see section 20-110 your associate: see section 20-125
If there have been 2 or If there has been a • If you inherit the car: If you dispose of an
more leases of the car: disposal of the car before see section 20-145 interest in a car instead
see section 20-130 you disposed of it: see • If another provision of the car itself: see
sections 20-135 and requires you to include section 20-160
20-140 an amount for the
disposal: see
section 20-150
• If you let a car on hire
under a hire purchase
agreement or on an
intermittent basis: see
section 20-155
Section 20-110
(a) the car was designed mainly for carrying passengers; and
(b) the car was leased to you and has been leased to no-one else;
and
(c) you or another entity can deduct for the income year any of
the lease payments paid or payable by you, or have deducted
or can deduct any of them for an earlier income year, under
this Act; and
(d) you acquired the car from the lessor.
Note 1: Even if subsection (1) does not apply, an amount may still be included
in your assessable income:
• under section 20-125 (which deals with more complicated
cases that may involve your associate); or
• if you disposed of an interest in a car (rather than the car
itself): see section 20-160.
Note 2: In some cases you do not include an amount in your assessable
income:
• if there has been an earlier disposal of the car for market value:
see section 20-135; or
• if you inherited the car: see section 20-145; or
• if the car was let on hire in the circumstances set out in
section 20-155.
(2) However, the amount included cannot exceed the smaller of these
limits:
(a) the total lease payments for the lease that you or another
entity have deducted or can deduct under this Act for an
income year;
(b) the amount of *notional depreciation for the lease period.
Note 1: If, because of more than one lease of the car, there is more than one
way to work out the amount to be included, you only include the
largest amount: see section 20-130.
Note 2: In some cases you reduce the amount to be included:
• if there has been an earlier disposal of the car, or of an interest
in it: see section 20-140; or
• if another provision requires you to include an amount because
of the disposal: see section 20-150.
(3) You increase those limits if you have previously leased the *car
from the same lessor, or from an *associate of that lessor.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 20-115
You increase the first limit by the total lease payments for each
previous lease of that kind that you or another entity have deducted
or can deduct under this Act for an income year.
You increase the second limit by the amount of *notional
depreciation for the period of each previous lease of that kind.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 20-120
Method statement
Step 1. Compare:
• the *car’s *cost to the lessor for the purposes of
Subdivision 40-C (which is about working out the
cost of *depreciating assets);
with:
• the car’s *termination value for the purposes of
section 40-300 when the lessor disposed of it.
Step 2. If the car’s cost exceeds the car’s termination value,
multiply the excess by:
• the number of days in the lease period;
divided by:
• the number of days the lessor owned the car.
Step 3. The result is the notional depreciation for the lease
period.
Step 4. If the car’s cost does not exceed the car’s termination
value, the notional depreciation for the lease period is
zero.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 20-125
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 20-125
(2) However, the amount included cannot exceed the smallest of these
limits:
(a) the total lease payments for the lease that you, your
*associate or another entity have deducted or can deduct
under this Act for an income year;
(b) the amount of *notional depreciation for the lease period;
(c) if an entity other than you, or if entities including you,
acquired the *car from the lessor—the amount by which the
*consideration receivable for the disposal of the car by you
exceeds the total of:
(i) the car’s cost to that entity, or those entities; and
(ii) any capital expenditure that entity, or any of those
entities, incurred on the car after that acquisition and
before you acquired it.
Note 1: If, because of more than one lease of the car, there is more than one
way to work out the amount to be included, you only include the
largest amount: see section 20-130.
Note 2: In some cases you reduce the amount to be included:
• if there has been an earlier disposal of the car, or of an interest
in it: see section 20-140; or
• if another provision requires you to include an amount because
of the disposal: see section 20-150.
Example: Your associate leases a car for 5 years and then acquires it from the
lessor for $4,000. Your associate sells it to you for $3,000. You sell it
for $10,000.
Your profit is $10,000 (the consideration receivable) less $3,000 (the
car’s cost to you) = $7,000.
The first 2 limits on the amount to be included in your assessable
income are $9,000 (total deductible lease payments for the lease) and
$8,000 (notional depreciation for the lease period).
Since your associate acquired the car from the lessor, the third limit is
$10,000 (the consideration receivable by you) less $4,000 (the car’s
cost to the associate) = $6,000.
The amount you include in your assessable income cannot exceed the
smallest of the limits. So, you do not include your profit of $7,000.
Instead, you include $6,000 (the smallest of the limits).
(3) You increase the first 2 limits if you, or your associate, have
previously leased the *car from the same lessor, or from an
associate of that lessor.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 20-130
You increase the first limit by the total lease payments for each
previous lease of that kind that you, your *associate or another
entity have deducted or can deduct under this Act for an income
year.
You increase the second limit by the amount of *notional
depreciation for the period of each previous lease of that kind.
Successive leases
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 20-140
Section 20-145
Miscellaneous rules
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 20-160
(5) Section 20-145 applies to the disposal if you inherited either the
interest or the *car itself.
Note: Section 20-145 says that you do not include an amount if you
inherited the car.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 25-1
This Division sets out some amounts you can deduct. Remember
that the general rules about deductions in Division 8 (which is
about general deductions) apply to this Division.
Table of sections
Operative provisions
25-5 Tax-related expenses
25-7 Advice about family tax benefit
25-10 Repairs
25-15 Amount paid for lease obligation to repair
25-20 Lease document expenses
25-25 Borrowing expenses
25-30 Expenses of discharging a mortgage
25-35 Bad debts
25-40 Loss from profit-making undertaking or plan
25-45 Loss by theft etc.
25-50 Payments of pensions, gratuities or retiring allowances
25-55 Payments to associations
25-60 Parliament election expenses
25-70 Deduction for election expenses does not extend to entertainment
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 25-5
25-75 Rates and land taxes on premises used to produce mutual receipts
25-80 Upgrading plant to meet GST obligations etc.
25-85 Certain returns in respect of debt interests
25-90 Deduction relating to foreign non-assessable non-exempt income
25-95 Deduction for work in progress amounts
25-105 Deductions for United Medical Protection Limited support payments
25-100 Travel between workplaces
25-110 Capital expenditure to terminate lease etc.
Operative provisions
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 25-5
Example: You buy a computer to prepare your tax returns. The expenditure you
incur in buying the computer is capital expenditure and cannot be
deducted under this section.
However, to the extent that you use the computer in preparing your
income tax return, you will be able to deduct the decline in value of
your computer under Division 40. That is because, under this
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 25-7
subsection, the computer is property that you are taken to use for the
purpose of producing assessable income.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 25-10
25-10 Repairs
(1) You can deduct expenditure you incur for repairs to premises (or
part of premises) or a *depreciating asset that you held or used
solely for the *purpose of producing assessable income.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 25-25
For the cases where the deduction is not spread, see subsection (6).
Note: Your deductions under this section may be reduced if any of your
commercial debts have been forgiven in the income year: see
Subdivision 245-E of Schedule 2C to the Income Tax Assessment Act
1936.
Income year when money used solely for the purpose of producing
assessable income
(2) You can deduct for an income year the maximum amount worked
out under subsection (4) if you use the *borrowed money during
that income year solely for the *purpose of producing assessable
income.
Example: In 1997-98 you borrow $100,000 and incur expenditure of $1,500 for
the borrowing. You use the money to buy a house. Throughout
1998-99 you rent the house to a tenant. You can deduct for the
expenditure for 1998-99 the maximum amount worked out under
subsection (4).
Income year when borrowed money used partly for that purpose
(3) If you use the money only partly for that purpose during that
income year, you can deduct the proportion of that maximum
amount that is appropriate having regard to the extent that you used
the *borrowed money for that purpose.
Note: You cannot deduct anything for that income year if you do not use the
money for that purpose at all during that income year.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 25-25
Method statement
Step 1. Work out the remaining expenditure as follows:
• For the income year in which the *period of the
loan begins, it is the amount of the expenditure.
• For a later income year, it is the amount of the
expenditure reduced by the the maximum amount
that you can deduct for the expenditure for each
earlier income year.
Step 2. Work out the remaining loan period as follows:
• For the income year in which the *period of the
loan begins, it is the period of the loan (as
determined at the end of the income year).
• For a later income year, it is the period from the
start of the income year until the end of the period
of the loan (as determined at the end of the income
year).
Step 3. Divide the remaining expenditure by the number of days
in the remaining loan period.
Step 4. Multiply the result from Step 3 by the number of days in
the remaining loan period that are in the income year.
Example: To continue the example in subsection (2): suppose the original period
of the loan is 4 years starting on 1 September 1997. What is the
maximum amount you can deduct for the expenditure for 1997-98?
Applying the method statement:
After Step 1: the remaining expenditure is $1,500 (the amount of the
expenditure).
After Step 2: the remaining loan period is 4 years from 1 September
1997 (1,461 days).
After Step 3: the result is $1,500 divided by 1,461 = $1.03.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 25-25
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 25-30
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 25-35
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 25-35
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 25-40
Notice to Commissioner
(3) You can deduct a loss under subsection (1), insofar as it arises in
respect of property, only if:
(a) you notified the Commissioner that you acquired the property
for the purpose of profit-making by sale or for the carrying
on or carrying out of any profit-making undertaking or plan
(however described); or
(b) the Commissioner is satisfied that you acquired the property
for either of those purposes.
Section 25-45
(a) for the income year in which you acquired the property; or
(b) if you were not required to lodge an income tax return for
that income year—for the first income year after that income
year for which you were required to lodge one.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 25-60
Note: Alternatively, you can deduct the expense under section 8-1 (which is
about general deductions) if you satisfy the requirements of that
section.
Maximum amount—$42
(2) However, $42 is the maximum amount you can deduct under this
section for the payments that you make in the income year to any
one association.
(2) However, subsection (1) does not stop you deducting expenditure
to the extent that you incur it in respect of:
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 25-75
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 25-80
deduct the rates or land tax to the extent that it uses the premises in
one or more of the ways referred to in that subsection.
(e) your *pre-GST annual turnover for the income year in which
you incur the expenditure or enter into the contract does not
exceed $10,000,000; and
(f) immediately before 1 July 2000, you are registered under
Part 2-5 of the *GST Act.
If you have already deducted the expenditure but you fail to
comply with paragraph (d) of this subsection, your assessment may
be amended to disallow the deduction.
Section 25-85
(b) before you lodge your income tax return for the income year,
you applied for registration under Part 2-5 of the GST Act
and, when you lodge the return, the application has not been
refused.
(3) However, if subsection (2) has applied to you but, immediately
before 1 July 2000, you are not registered under Part 2-5 of the
*GST Act, you cannot deduct the expenditure. If you have already
deducted it, your assessment may be amended to disallow the
deduction.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 25-90
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 25-95
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 25-100
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 25-110
Exceptions
(3) You cannot deduct any amount for expenditure you incur to
terminate a lease that, in accordance with *accounting standards, or
statements of accounting concepts made by the Australian
Accounting Standards Board, is classified as a finance lease.
(4) If you incurred the expenditure under an *arrangement and:
(a) there is at least one other party to the arrangement with
whom you did not deal at *arm’s length; and
(b) apart from this subsection, the amount of the expenditure
would be more than the *market value of what it was for
(assuming the termination did not occur and was never
proposed to occur);
the amount of expenditure you take into account is that market
value.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 25-110
(5) You cannot deduct any amount for expenditure you incur to
terminate a lease or licence if:
(a) after the termination, you or an *associate of yours enters into
another lease or licence with the same party or an associate
of that party; and
(b) the other lease or licence is of the same kind as the original
one.
(6) You cannot deduct any amount for expenditure you incur to
terminate a lease or licence to the extent that the expenditure is for
the granting or receipt of another lease or licence in relation to the
asset that was the subject of the original lease or licence.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 26-1
This Division sets out some amounts that you cannot deduct, or
that you cannot deduct in full.
Table of sections
Operative provisions
26-5 Penalties
26-10 Leave payments
26-15 Franchise fees windfall tax
26-17 Commonwealth places windfall tax
26-20 Assistance to students
26-25 Interest or royalty
26-26 Non-share distribution and dividends
26-30 Relative’s travel expenses
26-35 Reducing deductions for amounts paid to related entities
26-40 Maintaining your family
26-45 Recreational club expenses
26-50 Expenses for a leisure facility or boat
26-52 Bribes to foreign public officials
26-53 Bribes to public officials
26-54 Expenditure relating to illegal activities
26-55 Limit on deductions
26-60 Superannuation contributions surcharge
26-65 Termination payments surcharge
26-68 Loss from disposal of eligible venture capital investments
26-70 Loss from disposal of venture capital equity
26-75 Contributions to non-complying superannuation funds
26-80 Contributions to complying superannuation funds or RSAs
26-85 Amounts offset against superannuation guarantee charge
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 26-5
Operative provisions
26-5 Penalties
(1) You cannot deduct under this Act:
(a) an amount (however described) payable, by way of penalty,
under an *Australian law or a *foreign law; or
(b) an amount ordered by a court to be paid on the conviction of
an entity for an offence against an *Australian law or a
*foreign law.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 26-15
(d) under (or for the purposes of facilitating the provisions of) an
*Australian law, or an award, order, determination or
industrial agreement under an *Australian law.
It does not matter whether the leave accrues to the individual as an
employee or for some other reason.
Example: Your employee goes to a new employer. You pay the new employer
$2,000 for the employee’s unused long service leave because an
industrial agreement requires you to make that payment.
Note: An accrued leave transfer payment is included in the assessable
income of the entity to which it is made: see section 15-5.
Section 26-25
Section 26-30
Section 26-30
Section 26-35
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 26-40
Amendments of assessments
(5) The Commissioner can amend an assessment at any time for the
purpose of giving effect to subsection (4).
Example: An amount was not included in the related entity’s assessable income
because at the time you could not deduct the amount. At a later time
you discover that you could deduct the amount and your assessment is
amended. The Commissioner can amend the entity’s assessment so
that the amount is included in the entity’s assessable income.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 26-50
Exception—leisure facilities
(3) Subsection (1) does not stop you deducting a loss or outgoing for a
*leisure facility if at all times in the income year:
(a) you hold the leisure facility for sale in the ordinary course of
your business of selling leisure facilities; or
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 26-50
(b) you use the leisure facility (or hold it for use) mainly to
provide it:
(i) in the ordinary course of your *business of providing
leisure facilities for payment; or
(ii) to produce your assessable income in the nature of rents,
lease premiums, licence fees or similar charges; or
(iii) for your employees to use; or
(iv) for the care of your employees’ children.
In the case of a company, subparagraphs (b)(iii) and (iv) do not
apply to employees who are *members or directors of the company.
Exception—boats
(5) Subsection (1) does not stop you deducting a loss or outgoing for a
boat if at all times in the income year you:
(a) hold the boat as *trading stock for sale in the ordinary course
of a *business that you carry on; or
(b) use the boat (or hold it) mainly for letting it on hire in the
ordinary course of a *business that you carry on; or
(c) use the boat (or hold it) mainly for transporting for payment
in the ordinary course of a *business that you carry on, the
public or goods; or
(d) use the boat for a purpose that is essential to the efficient
conduct of a *business that you carry on.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 26-52
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 26-52
Facilitation payments
(4) An amount is not a bribe to a foreign public official if it is
incurred for the sole or dominant purpose of expediting or securing
the performance of a routine government action of a minor nature.
(5) For the purposes of this section, a routine government action is an
action of a *foreign public official that:
(a) is ordinarily and commonly performed by the official; and
(b) is covered by any of the following subparagraphs:
(i) granting a permit, licence or other official document
that qualifies a person to do business in a foreign
country or in a part of a foreign country;
(ii) processing government papers such as a visa or work
permit;
(iii) providing police protection or mail collection or
delivery;
(iv) scheduling inspections associated with contract
performance or related to the transit of goods;
(v) providing telecommunications services, power or water;
(vi) loading and unloading cargo;
(vii) protecting perishable products, or commodities, from
deterioration;
(viii) any other action of a similar nature; and
(c) does not involve a decision about:
(i) whether to award new business; or
(ii) whether to continue existing business with a particular
person; or
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 26-53
Section 26-53
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 26-54
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 26-60
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 26-68
Partners in VCLPs
(1) You cannot deduct under this Act your share of a loss made from
the disposal or other realisation of an *eligible venture capital
investment if:
(a) it is made by a *VCLP that is *unconditionally registered; and
(b) were that disposal or other realisation to be a *disposal of a
*CGT asset, your share of any *capital gain or *capital loss
would be disregarded under section 118-405.
Partners in AFOFs
(2) You cannot deduct under this Act your share of a loss made from
the disposal or other realisation of an *eligible venture capital
investment if:
(a) it is made by:
(i) an *AFOF that is *unconditionally registered; or
(ii) a *VCLP that is unconditionally registered and in which
an AFOF that is *unconditionally registered is a partner;
and
(b) were that disposal or other realisation to be a *disposal of a
*CGT asset, your share of any *capital gain or *capital loss
would be disregarded under section 118-410.
Section 26-75
Section 26-80
(b) you pay the contribution on or before the day that is 28 days
after the end of the month in which you turn 70 years old;
and
(c) you are not entitled to a Government co-contribution payable
under the Superannuation (Government Co-contribution for
Low Income Earners) Act 2003 in respect of the contribution.
However, you can only deduct the amount of the contribution that
is actually required by the industrial award, determination or
notional agreement preserving State awards.
Note: An industrial agreement, such as an Australian Workplace Agreement,
Collective Agreement or preserved State agreement under the
Workplace Relations Act 1996, is not an award or determination.
(5) You can deduct an amount under section 82AAC of the Income
Tax Assessment Act 1936 if:
(a) you are entitled to the deduction under that section; and
(b) you pay the contribution in respect of another person after the
day referred to in paragraph (2)(b); and
(c) the contribution reduces your charge percentage in respect of
the other person under section 22 or 23 of the
Superannuation Guarantee (Administration) Act 1992.
(6) If both subsections (4) and (5) potentially apply in respect of the
deduction, you can choose which of those subsections actually
applies.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 26-85
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 27-1
Guide to Division 27
This Division sets out the effect of the GST in working out
deductions. Generally speaking, input tax credits, GST and
adjustments under the GST Act are disregarded.
Subdivision 27-A—General
Table of sections
27-5 Input tax credits and decreasing adjustments
27-10 Certain increasing adjustments
27-15 GST payments
27-20 Elements in calculation of amounts
27-25 GST groups and GST joint ventures
27-30 Input tax credits attributable because of the GST Transition Act
27-35 Certain sections not to apply to certain assets or expenditure
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 27-10
Section 27-20
(3) This section does not apply to the payment of *GST (under
section 33-15 of the *GST Act) on a *taxable importation that:
(a) was not a *creditable importation; or
(b) was *partly creditable;
but only to the extent that that payment of GST exceeds the *input
tax credit (if any) to which you are entitled for that importation.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 27-35
Section 27-80
(c) the entity can deduct amounts for the asset under Division 40
or 328.
The reduction is the amount of the input tax credit.
(2) A *depreciating asset’s *cost is also reduced if:
(a) the entity that *holds the asset incurs expenditure that is
included in the second element of the asset’s cost for the
income year in which the asset’s *start time occurs; and
(b) the entity is or becomes entitled to an *input tax credit for the
*creditable acquisition or *creditable importation to which the
expenditure relates; and
(c) the entity can deduct amounts for the asset under Division 40
or 328.
The reduction is the amount of the input tax credit.
(3) However, subsections (1) and (2) do not apply if the *cost of the
*depreciating asset is modified under Division 40 to be its *market
value.
(3A) A *depreciating asset’s *opening adjustable value for an income
year and its *cost is reduced if:
(a) an entity’s acquisition or importation of the asset constitutes
a *creditable acquisition or *creditable importation; and
(b) the entity is or becomes entitled to an *input tax credit in an
income year (the credit year) for the acquisition or
importation and the credit year occurs after the income year
in which the acquisition or importation occurred; and
(c) the income year is after the one in which the asset’s *start
time occurs; and
(d) the entity can deduct amounts for the asset under Division 40
or 328.
The reduction is the amount of the input tax credit.
(4) A *depreciating asset’s *opening adjustable value for an income
year and its *cost is reduced if:
(a) the entity that *holds the asset incurs expenditure that is
included in the second element of the asset’s cost for that
income year; and
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 27-85
(b) that income year is after the one in which the asset’s*start
time occurs; and
(c) the entity is or becomes entitled to an *input tax credit for the
*creditable acquisition or *creditable importation to which the
expenditure relates for the income year in which the
expenditure was incurred; and
(d) the entity can deduct amounts for the asset under Division 40
or 328.
The reduction is the amount of the input tax credit.
(5) If the reduction under subsection (2), (3A) or (4) is more than:
(a) for a subsection (2) case—the *depreciating asset’s *cost; or
(b) for a subsection (3A) or (4) case—the depreciating asset’s
*opening adjustable value;
Exception: pooling
(6) This section does not apply to:
(a) a depreciating asset allocated to a low-value pool or a pool
under Division 328 for or in the *current year; or
(b) *in-house software if expenditure on the software is allocated
to a software development pool for the current year; or
(c) a project pool.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 27-87
Exception: pooling
(5) This section does not apply to:
(a) a depreciating asset allocated to a low-value pool or a pool
under Division 328 for or in the *current year; or
(b) *in-house software if expenditure on the software is allocated
to a software development pool for the current year; or
(c) a project pool.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 27-90
Exception: pooling
(4) This section does not apply to:
(a) a depreciating asset allocated to a low-value pool or a pool
under Division 328 for or in the *current year; or
(b) *in-house software if expenditure on the software is allocated
to a software development pool for the current year; or
(c) a project pool.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 27-95
(2) The entity can deduct the amount of the *increasing adjustment for
the income year.
(3) However, the entity cannot deduct the amount to the extent (if any)
that the adjustment arises from an increase in the extent to which
the activity giving rise to the adjustment is of a private or domestic
nature.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 27-100
27-100 Pooling
(1) This section contains special rules for expenditure (the pooled
expenditure) incurred by an entity:
(a) on a *depreciating asset allocated to a low-value pool; or
(b) on a depreciating asset allocated to a pool under Division 328
for or in an income year; or
(c) on *in-house software if the expenditure on the software is
allocated to a software development pool; and
(d) on *project amounts if the amounts are allocated to a project
pool.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 27-100
Low-value pools
(3) For a low-value pool, the *closing pool balance of the pool for:
(a) if the credit year is later than the first income year for which
*depreciating assets were allocated to the pool—the income
year before the credit year; or
(b) if the credit year is the first income year for which
*depreciating assets were allocated to the pool—the credit
year;
is reduced by an amount equal to the input tax credit.
STS pools
(5) For a pool under Division 328, the *opening pool balance of the
pool for the credit year is reduced by an amount equal to the input
tax credit.
Section 27-100
(7) An amount equal to the amount of the *input tax credit is applied in
reduction of:
(a) for a low-value pool:
(i) if the credit year is later than the first income year for
which *depreciating assets were allocated to the pool—
the *closing pool balance of the pool for the income
year before the credit year; or
(ii) if the credit year is the first income year for which
*depreciating assets were allocated to the pool—the
*closing pool balance of the pool for the credit year; or
Increasing adjustments
(8) There is an increase under subsection (9) if the entity has an
*increasing adjustment (except one that arises under Division 129
or 132 of the *GST Act) in an income year (the adjustment year)
that relates directly or indirectly to a *creditable acquisition or
*creditable importation to which the pooled expenditure relates.
Note: For an increasing adjustment that arises under Division 129 or 132 of
the GST Act, see section 27-92.
Section 27-100
Decreasing adjustments
(10) There is a decrease under subsection (11) if the entity has a
*decreasing adjustment (except one that arises under Division 129
or 132 of the *GST Act) in an income year (also the adjustment
year) that relates directly or indirectly to a *creditable acquisition
or *creditable importation to which the pooled expenditure relates.
Note: For a decreasing adjustment that arises under Division 129 or 132 of
the GST Act, see section 27-87.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 27-105
(12) If the amount available for reduction under subsection (11) is more
than the amount referred to in paragraph (11)(a), (b), (c) or (d)
(whichever is applicable), the excess is included in the entity’s
assessable income unless the entity is an *exempt entity.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 27-110
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 28-1
Guide to Division 28
This Division sets out the rules for working out deductions for car
expenses if you own or lease a car or hire a car under a hire
purchase agreement.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 28-5
Table of sections
28-5 Map of this Division
Subdivision 28-A
Section 28-12
contains the basic The 4 methods of
operative provision. calculating car expenses
Subdivision 28-B
Choosing the best method
is up to you. Hence it is Choosing which
important to understand method to use
the methods and how
they differ.
Subdivisions 28-G,
28-H and 28-I
Subdivision 28-J
The exceptions cover
unusual cases which Substantiating expenses
will not apply to Exceptions to the above (see Subdivision 900-C)
most taxpayers.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 28-10
(2) You must use one of the 4 methods unless an exception applies. If
you can’t use any of the methods, you can’t deduct anything for the
*car expenses.
Section 28-14
Table of sections
28-15 Choosing among the 4 methods
Operative provision
28-20 Rules governing choice of method
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 28-15
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 28-20
Operative provision
(3) You can also choose different methods for the same *car for
different income years and different methods for different cars for
the same year.
Section 28-30
Example: If the car travelled 5,085 business kilometres, you could claim for
5,000, and would lose the extra 85.
(3) Business kilometres are kilometres the *car travelled in the course
of:
(a) producing your assessable income; or
(b) your *travel between workplaces.
You calculate the number of business kilometres by making a
reasonable estimate.
28-35 Substantiation
To use this method, you do not need to substantiate the *car
expenses for the *car.
Section 28-50
(2) But the most you can deduct using this method is 12% of the *car
limit for the income year when you first used the *car for any
purpose (if you own it) or when you first began to lease it.
Note: Section 40-230 deals with the car limit.
(3) Your deduction is reduced if you did not own or lease the *car for
the whole income year. You can only deduct the amount worked
out using the formula:
⎛ ⎞
⎜ 365 – Number of car-less days ⎟
Full year car deduction × ⎝ ⎠
365
The full year car deduction is the amount you could deduct if you
had owned or leased the *car for the whole income year.
A car-less day is a day when you did not own or lease the *car.
28-50 Eligibility
(1) You can use this method only if the number of *business
kilometres travelled by the *car in the income year was more than
5,000, or would have been if you had used the car throughout the
income year.
(2) Business kilometres are kilometres the *car travelled in the course
of:
(a) producing your assessable income; or
(b) your *travel between workplaces.
You calculate the number of business kilometres by making a
reasonable estimate.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 28-60
28-60 Substantiation
To use this method, you do not need to substantiate the *car
expenses for the *car.
28-75 Eligibility
(1) You can use this method only if the number of *business
kilometres travelled by the *car in the income year was more than
5,000, or would have been if you had used the car throughout the
income year.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 28-80
(2) Business kilometres are kilometres the *car travelled in the course
of:
(a) producing your assessable income; or
(b) your *travel between workplaces.
You calculate the number of business kilometres by making a
reasonable estimate.
28-80 Substantiation
To use this method, you must substantiate the expenses under
Subdivision 900-C.
The expense
(2) The expense must qualify as a deduction under some provision of
this Act outside this Division (or would qualify if, while you *held
the *car, you had used it only in producing your assessable
income). If only part of the expense would qualify, you multiply
that part by the *business use percentage.
Example: You borrow money to buy a car. You make repayments of principal
and payments of interest.
You cannot deduct the repayments of principal because they are
capital expenses.
The interest payments would be deductible in full if, throughout the
income year, you had used the car only in producing your assessable
income.
Using the “log book” method:
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 28-90
• if you held the car for the whole income year—multiply the
interest payments by the business use percentage;
• if you held the car for only 6 months of the income year—
multiply the interest payments for those 6 months by the
business use percentage.
To find out whether an expense qualifies as a deduction under this Act, see
Division 8 (Deductions).
The percentage
(3) The business use percentage is calculated by dividing:
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 28-95
28-95 Eligibility
You can use this method only if you *held the *car for some or all
of the income year.
28-100 Substantiation
(1) To use this method, you must substantiate the *car expenses under
Subdivision 900-C.
(2) You must also keep a log book. Subdivision 28-G explains:
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 28-105
This Subdivision tells you how to keep a log book. A log book is
relevant to estimating the number of business kilometres the car
travelled in the period when you held it during the income year.
Table of sections
28-110 Steps for keeping a log book
Operative provisions
28-115 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
• record journeys made in the car during the log book period
in the course of producing your assessable income.
Operative provisions
28-115 Income years for which you need to keep a log book
(1) You need to keep a log book for the first income year for which
you use this method for the *car.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 28-120
(2) Having kept a log book for one income year, you don’t need to
keep a new one for the next 4 or more income years unless
subsection (3) or (4) requires it. If you haven’t kept a new log book
for 4 income years in a row, you must keep one for the next
income year.
Example: If you keep a log book in 1997-98, you would need to keep the next
one in 2002-2003, unless subsection (3) or (4) requires one sooner.
(3) You must keep a log book for an income year if the Commissioner
sends you a notice before the year directing you to keep a log book
for the *car for that year.
(4) You must keep a log book for an income year if, during that year,
you get one or more additional *cars for which you want to use the
“log book” method for that year.
(5) When you replace one *car with another, you might have a period
when you *hold both the new car and the old car, or a period when
you no longer *hold the old car but do not yet hold the new car. In
both these cases, you are treated for the purposes of subsection (4)
as if you held the one car continuously.
(6) You may choose to keep a log book for an income year even if you
don’t need to; for example, because you want to establish a higher
*business use percentage.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 28-125
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 28-130
This Subdivision tells you how to keep odometer records for a car
during a particular period. Odometer records document the total
number of kilometres the car travelled during a particular period.
Table of sections
Operative provision
28-140 How to keep odometer records for a car for a period
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 28-140
Operative provision
Section 28-155
(a) first, until the end of the latest income year for which you
rely on the log book to support your calculation of the
*business use percentage for the *car; and
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 28-160
(2) If you keep a log book for the income year, you must retain the
odometer records for the same period as the log book, and
section 28-150 applies to them in the same way as it applies to the
log book.
(3) If you don’t keep a log book for the income year, you must retain
the odometer records for the same period as written evidence of a
*car expense for the *car for the income year, and section 900-75
applies to them in the same way as it applies to written evidence of
an expense.
Note: Section 900-75 is about retaining written evidence of a car expense.
This Subdivision sets out the situations where you cannot use, or
don’t need to use, any of the 4 methods. These situations involve
either the nature of your car or the way you use it.
Table of sections
Operative provisions
28-165 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 to recipients and payers of certain
withholding payments
Operative provisions
Section 28-170
(2) Instead, you must calculate the deductions under the normal
principles governing deductions, including the rules for
apportioning a loss or outgoing that is only partly attributable to
producing assessable income.
(3) This section applies to a taxi taken on hire.
(4) It also applies to a *motor vehicle taken on hire under an agreement
of a kind ordinarily entered into by people who take motor vehicles
on hire intermittently, as the occasion requires, on an hourly, daily,
weekly or short term basis, except if the motor vehicle:
(a) has been taken on hire under successive agreements of a kind
that result in substantial continuity of the motor vehicle being
taken on hire; or
(b) it is reasonable to expect that the motor vehicle will be taken
on hire under successive agreements of a kind that will so
result.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 28-170
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 28-175
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 28-180
(2) If that Subdivision lets you deduct *car expenses, or parts of *car
expenses, without getting written evidence, you don’t need to use
any of the 4 methods to calculate your deductions for those
expenses or parts of expenses.
(3) However, your use of the 4 methods for other *car expenses you
incur for the *car for the income year is affected, unless you elect
not to rely on Subdivision 900-I. Section 900-250 deals with this
matter.
Application to recipients
(1) If an individual receives, or is entitled to receive, *withholding
payments covered by subsection (3), this Subdivision applies to
him or her:
(a) in the same way as it applies to an employee; and
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 28-185
Application to payers
(2) This Division applies to an entity that makes, or is liable to make,
*withholding payments covered by subsection (3):
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-1
Guide to Division 30
This Division sets out the rules for working out deductions for
certain gifts or contributions that you make.
Table of sections
30-5 How to find your way around this Division
30-10 Index
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-5
(2) Subdivision 30-A contains a table of all the gifts and contributions
that you can deduct. You need to look at the table to see whether
the type of gift or contribution you are making is covered by it.
(3) In some cases, the table sends you off to Subdivision 30-B. It has a
number of tables that list particular funds, authorities or institutions
that deductible gifts can be made to.
(4) In other cases, the table sends you off to Subdivision 30-C. It
contains rules that apply to particular gifts of property.
(4AA) Subdivision 30-BA provides for the Commissioner to endorse as a
deductible gift recipient an entity that is, or operates, a fund,
authority or institution. The relevance of the Subdivision to you is
that generally you can deduct only a gift you make to a recipient
that is endorsed or named in:
(a) this Division; or
(b) regulations made for the purposes of this Division.
Note: The fact that gifts to a recipient registered in the Australian Business
Register are deductible will be shown in the Register.
Section 30-10
30-10 Index
There is an index to this Division in Subdivision 30-G.
• how much you can deduct for the gift or contribution; and
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-15
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-15
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-15
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-15
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-15
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-15
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-15
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-15
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-15
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-15
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-15
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-15
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-17
(3) For the purposes of items 4, 5 and 6 of the table in subsection (2),
the *GST inclusive market values of the property or place in
question are reduced by 1/11 if you would have been entitled to an
*input tax credit if:
(a) you had *acquired the property or place at the time you made
the gift; and
(b) your acquisition had been for a *creditable purpose.
(4) For the purposes of item 7 of the table in subsection (2), in working
out the *GST inclusive market value of the right in question,
disregard anything that would prevent or restrict conversion of the
right to money.
(5) For the purposes of item 8 of the table in subsection (2), in working
out the *GST inclusive market value of the goods or services in
question, disregard anything that would prevent or restrict
conversion of the goods or services to money.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-17
Health
30-20 Health
Education
30-25 Education
30-30 Gifts that must be for certain purposes
30-35 Gifts to a public fund established to benefit a rural school hostel building
must satisfy certain requirements
30-37 Scholarship etc. funds
Research
30-40 Research
Defence
30-50 Defence
Environment
30-55 The environment
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-20
30-60 Gifts to a National Parks body or conservation body must satisfy certain
requirements
The family
30-70 The family
30-75 Marriage education organisations must be approved
International affairs
30-80 International affairs
30-85 Developing country relief funds
30-86 Developed country disaster relief funds
Philanthropic trusts
30-95 Philanthropic trusts
Cultural organisations
30-100 Cultural organisations
Other recipients
30-105 Other recipients
Health
30-20 Health
(1) This table sets out general categories of health recipients.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-20
Health—General
Item Fund, authority or institution Special conditions
1.1.1 a public hospital none
1.1.2 a hospital carried on by a society or none
association otherwise than for the purposes of
profit or gain to the individual members of
the society or association
1.1.3 a public fund established before 23 October none
1963 and maintained for the purpose of
providing money for hospitals covered by
item 1.1.1 or 1.1.2 or for the establishment of
such hospitals
1.1.4 a public authority engaged in research into the gift must be made for
the causes, prevention or cure of disease in such research
human beings, animals or plants
1.1.5 a public institution engaged solely in research none
into the causes, prevention or cure of disease
in human beings, animals or plants
1.1.6 a charitable institution whose principal none
activity is to promote the prevention or the
control of diseases in human beings
1.1.7 a public ambulance service none
1.1.8 a public fund established and maintained for none
the purpose of providing money for the
provision of public ambulance services
Health—Specific
Item Fund, authority or institution Special conditions
1.2.1 The Royal Australian and New Zealand none
College of Obstetricians and Gynaecologists
1.2.2 the Australian College of Occupational none
Medicine
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-20
Health—Specific
Item Fund, authority or institution Special conditions
1.2.3 the Australian Postgraduate Federation in the gift must be made for
Medicine education or research in
medical knowledge or
science
1.2.4 the College of Radiologists in Australasia the gift must be made for
education or research in
medical knowledge or
science
1.2.5 the New South Wales College of Nursing none
1.2.6 the Royal Australian and New Zealand none
College of Psychiatrists
1.2.7 the Royal Australian College of General the gift must be made for
Practitioners education or research in
medical knowledge or
science
1.2.8 the Royal Australasian College of Physicians none
1.2.9 the Royal Australasian College of Surgeons none
1.2.10 the Royal College of Pathologists of the gift must be made for
Australasia education or research in
medical knowledge or
science
1.2.11 the Australian Regional Council of the Royal none
College of Obstetricians and Gynaecologists
1.2.12 the Royal College of Nursing, Australia none
1.2.13 the Australian and New Zealand College of none
Anaesthetists
1.2.14 SouthCare Helicopter Fund the gift must be made
after 11 September 2000
1.2.15 Breast Cancer Network Australia the gift must be made
after 22 May 2001
1.2.16 National Breast Cancer Centre Gift Fund the gift must be made
after 24 September 2001
1.2.17 The Bionic Ear Institute the gift must be made
after 4 October 2001
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-25
Education
30-25 Education
(1) This table sets out general categories of education recipients.
Education—General
Item Fund, authority or institution Special conditions
2.1.1 a public university none
2.1.2 a public fund for the establishment of a none
public university
2.1.3 a higher education institution within the none
meaning of the Higher Education Funding
Act 1988
2.1.4 a residential educational institution affiliated none
under statutory provisions with a public
university
2.1.5 a residential educational institution none
established by the Commonwealth
2.1.6 a residential educational institution that is none
affiliated with a higher education institution
within the meaning of the Higher Education
Funding Act 1988
2.1.7 an institution that the Minister for see section 30-30
Employment, Education, Training and Youth
Affairs has declared by a signed instrument
to be a technical and further education
institution within the meaning of the
Employment, Education and Training Act
1988
2.1.8 a public fund established and maintained none
solely for the purpose of providing religious
instruction in government schools in
Australia
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-25
Education—General
Item Fund, authority or institution Special conditions
2.1.9 a public fund established and maintained by a none
Roman Catholic archdiocesan or diocesan
authority solely for the purpose of providing
religious instruction in government schools
in Australia
2.1.10 a public fund established and maintained none
solely for providing money for the
acquisition, construction or maintenance of a
building used, or to be used, as a school or
college by:
(a) a government; or
(b) a public authority; or
(c) a society or association which is carried
on otherwise than for the purposes of
profit or gain to the individual members
of the society or association
2.1.11 a public fund established and maintained see section 30-35
solely for providing money for the
acquisition, construction or maintenance of a
rural school hostel building
2.1.12 a government school that: none
(a) provides special education for students
each of whom has a disability that is
permanent or is likely to be permanent;
and
(b) does not provide education for other
students
2.1.13 a public fund: see section 30-37
(a) that is established for charitable purposes;
and
(b) that is established and maintained solely
for providing money for scholarships,
bursaries or prizes to which section 30-37
applies
Section 30-25
Education—Specific
Item Fund, authority or institution Special conditions
2.2.1 The Academy of the Social Sciences in none
Australia Incorporated
2.2.2 the Australian Academy of Science none
2.2.3 the Australian Academy of the Humanities none
for the Advancement of Scholarship in
Language, Literature, History, Philosophy
and the Fine Arts
2.2.4 the Australian Academy of Technological none
Sciences and Engineering Limited
2.2.5 Monash Mt Eliza Graduate School of the gift must be made
Business and Government Limited before 6 April 2000
2.2.6 the Australian and New Zealand Association none
for the Advancement of Science
2.2.7 the Australian Ireland Fund none
2.2.8 the Life Education Centre none
2.2.9 a company that conducts life education the gift must be for the
programs under the auspices of the Life conduct of such
Education Centre if the company: programs
(a) is not carried on for the purposes of profit
or gain to its individual members; and
(b) is prohibited by its *constitution from
making any distribution of money or
property to its members
2.2.10 the Council for Christian Education in none
Schools
2.2.11 the Council for Jewish Education in Schools none
2.2.12 H.R.H. The Duke of Edinburgh’s the gift must be made
Commonwealth Study Conferences before 21 February 2001
(Australia) Incorporated
2.2.13 the Lionel Murphy Foundation none
2.2.14 the Marcus Oldham Farm Management see section 30-30
College
2.2.15 the Constitutional Centenary Foundation none
Incorporated
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-25
Education—Specific
Item Fund, authority or institution Special conditions
2.2.16 the Polly Farmer Foundation (Inc) none
2.2.17 The Australian Council of Christians and the gift must be made
Jews after 6 December 1998
2.2.18 the Sir William Tyree Foundation of The the gift must be made
Australian Industry Group after 28 February 1999
2.2.19 the Foundation for Gambling Studies the gift must be made
after 8 March 2000
2.2.20 Australian Nuffield Farming Scholars the gift must be made
Association after 16 April 2001
2.2.21 Dymocks Literacy Foundation Limited the gift must be made
after 4 January 2001
2.2.22 Australian Primary Principals Association the gift must be made
Education Foundation after 1 October 2001
2.2.23 Commonwealth Study Conferences the gift must be made
(Australia) Incorporated after 19 February 2001
2.2.24 Mt Eliza Graduate School of Business and the gift must be made
Government Limited after 4 April 2000
2.2.25 Australian Human Rights Education Fund the gift must be made
after 24 September 2001
2.2.26 Aboriginal Education Council (N.S.W.) the gift must be made
Incorporated after 6 May 2002
2.2.27 General Sir John Monash Foundation the gift must be made
after 16 June 2002
2.2.28 Australian-American Educational Foundation the gift must be made
after 30 April 2003
2.2.29 The Australian Literacy and Numeracy the gift must be made
Foundation Limited after 11 October 2002
2.2.30 The Constitution Education Fund the gift must be made
after 20 June 2003
2.2.31 Country Education Foundation of Australia the gift must be made on
Limited or after 20 August 2003
2.2.32 The Clontarf Foundation Inc. the gift must be made
after 30 August 2004
2.2.33 International Specialised Skills Institute the gift must be made
Incorporated after 11 August 2005
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-30
Education—Specific
Item Fund, authority or institution Special conditions
2.2.34 Yachad Accelerated Learning Project the gift must be made
Limited after 29 June 2005 and
before 1 July 2006
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-37
(3) The costs of the school must be solely or partly funded by the
Commonwealth, a State or a Territory.
(4) The residential accommodation must be provided by:
(a) the Commonwealth, a State or a Territory; or
(b) a public authority; or
(c) a company that:
(i) is not carried on for the purposes of profit or gain to its
individual members; and
(ii) is prohibited by its *constitution from making any
distribution of money or property to its members.
Research
30-40 Research
(1) This table sets out general categories of research recipients.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-45
Research—General
Item Fund, authority or institution Special conditions
3.1.1 a university, college, institute, association or the gift must be made for
organisation which is an approved research purposes of scientific
institute for the purposes of section 73A research in the field of
(Expenditure on scientific research) of the natural or applied science
Income Tax Assessment Act 1936
Research—Specific
Item Fund, authority or institution Special conditions
3.2.1 the Centre for Independent Studies none
3.2.2 the Ian Clunies Ross Memorial Foundation none
3.2.3 the Commonwealth the gift must be made for
purposes of research in
the Australian Antarctic
Territory
3.2.4 The Menzies Research Centre Public Fund the gift must be made
after 2 April 1998
3.2.5 The Sir Earl Page Memorial Trust the gift must be made
after 6 May 2001
3.2.6 Research Australia Limited the gift must be made
after 26 June 2001
3.2.7 The Page Research Centre Limited the gift must be made
after 12 January 2005
3.2.8 The Chifley Research Centre Limited the gift must be made
after 19 May 2005
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-45
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-45
(2) This table sets out specific welfare and rights recipients.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-45
Section 30-46
Section 30-50
Note: Public funds under item 4.1.5 of the table in subsection 30-45(1) are
for disaster relief of people in Australia. Public funds may also be
established for disaster relief of people in other countries. See
items 9.1.1 (which is not limited to disaster relief) and 9.1.2 of the
table in section 30-80.
Defence
30-50 Defence
(1) This table sets out general categories of defence recipients.
Defence—General
Item Fund, authority or institution Special conditions
5.1.1 the Commonwealth or a State the gift must be made for
purposes of defence
5.1.2 a public institution or public fund established none
and maintained for the comfort, recreation or
welfare of members of the armed forces of
any part of Her Majesty’s dominions, or of
any allied or other foreign force serving in
association with Her Majesty’s armed forces
5.1.3 a public fund established and maintained the gift must be made
solely for providing money to reconstruct, or within the 2 years
make critical repairs to, a particular war beginning on the day on
memorial that: which:
(a) is located in Australia; and (a) the fund; or
(b) commemorates events in a conflict in (b) if the fund is legally
which Australia was involved, or people owned by an entity
who are mainly Australians and who that is endorsed for
participated on Australia’s behalf in a the operation of the
conflict; and fund—the entity;
(c) is a focus for public commemoration of is endorsed as a
the events or people mentioned in *deductible gift recipient
paragraph (b); and under Subdivision 30-BA
(d) is solely or mainly used for that public
commemoration
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-50
Defence—Specific
Item Fund, authority or institution Special conditions
5.2.1 the Shrine of Remembrance Restoration and the gift must be made
Development Trust before 1 July 2007
5.2.2 The Sandakan Memorials Trust Fund the gift must be made
before 30 July 1997
5.2.3 the Cobram and District War Memorial the gift must be made
Incorporated Fund before 19 October 1997
5.2.4 The Central Synagogue Restoration Fund the gift must be made
before 23 December
1997
5.2.5 The Borneo Memorials Trust Fund the gift must be made
before 23 December
1997
5.2.6 Australian National Korean the gift must be made
War Memorial Trust Fund before 2 September 2000
5.2.7 The National Nurses’ Memorial Trust the gift must be made
after 3 September 1997
and before 4 January
2000
5.2.8 Mount Macedon Memorial Cross the gift must be made
Restoration, Development and Maintenance after 8 February 1998
Trust Fund and before 9 February
1999 or after 30 June
2000 and before 1 July
2001
5.2.9 the Australian Ex-Prisoners of War Memorial the gift must be made
Fund after 19 October 1999
and before 20 October
2005
5.2.10 the RSL and 6th Division the gift must be made
Australian-Hellenic Educational Memorial after 13 June 2000 and
Fund before 14 June 2002
5.2.11 The RSL Foundation the gift must be made
after 20 September 2000
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-50
Defence—Specific
Item Fund, authority or institution Special conditions
5.2.12 Australian Chinese Ex-Services National the gift must be made
Reunion War Memorial Fund after 14 December 2000
and before 16 December
2002
5.2.13 Royal Australian Air Force (RAAF) the gift must be made
Memorial Trust Fund after 16 November 2000
and before 18 November
2002
5.2.14 Sir Hughie Edwards VC Foundation the gift must be made
Incorporated after 21 August 2001 and
before 23 August 2003
5.2.15 Warringah, Australia Remembers Trust the gift must be made
after 8 November 2001
and before 9 November
2003
5.2.16 Bowral Vietnam Memorial Walk Trust the gift must be made
Incorporated after 15 August 2001 and
before 16 August 2005
5.2.17 The Albert Coates Memorial Trust the gift must be made
after 30 January 2002
and before 31 January
2006
5.2.18 Tea Gardens / Hawks Nest War Memorial the gift must be made
Committee after 30 January 2002
and before 31 January
2004
5.2.19 Mount Macedon Memorial Cross Trust the gift must be made
after 14 August 2002 and
before 15 August 2005
5.2.20 The Manly Warringah War Memorial the gift must be made
Regional Park Remembrance Trust after 7 April 2002 and
before 8 April 2004
5.2.21 Shrine of Remembrance Foundation the gift must be made
after 2 July 2002 and
before 1 July 2006
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-55
Defence—Specific
Item Fund, authority or institution Special conditions
5.2.22 the Coolgardie Honour Roll Committee Fund the gift must be made
after 1 June 2004 and
before 2 June 2006
5.2.23 the Tamworth Waler Memorial Fund the gift must be made
after 19 April 2004 and
before 20 April 2006
5.2.24 City of Onkaparinga Memorial Gardens the gift must be made
Association Inc after 28 April 2004 and
before 1 July 2005
5.2.25 The Finding Sydney Foundation the gift must be made
after 26 August 2004 and
before 27 August 2006
5.2.26 C E W Bean Foundation the gift must be made
after 14 November 2005
and before 15 November
2007
5.2.27 The Vietnam War Memorial of Victoria the gift must be made
Incorporated after 31 December 2004
and before 1 January
2006
Environment
The environment—General
Item Fund, authority or institution Special conditions
6.1.1 a public fund that, when the gift is made, is none
on the register of *environmental
organisations kept under Subdivision 30-E
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-55
The environment—Specific
Item Fund, authority or institution Special conditions
6.2.1 the Australian Conservation Foundation see section 30-60
Incorporated
6.2.2 Greening Australia Limited see section 30-60
6.2.3 Landcare Australia Limited see section 30-60
6.2.4 the National Parks Association of New South see section 30-60
Wales
6.2.5 the Victorian National Parks Association see section 30-60
Incorporated
6.2.6 Trust for Nature (Victoria) see section 30-60
6.2.7 the National Parks Association of see section 30-60
Queensland
6.2.8 The Nature Conservation Society of South see section 30-60
Australia Incorporated
6.2.9 the Nature Foundation SA Incorporated see section 30-60
6.2.10 the Western Australian National Parks and see section 30-60
Reserves Association Incorporated
6.2.11 the Tasmanian Conservation Trust see section 30-60
Incorporated
6.2.12 the National Parks Association of the see section 30-60
Australian Capital Territory Incorporated
6.2.13 the National Trust of Australia (New South none
Wales)
6.2.14 the National Trust of Australia (Victoria) none
6.2.15 The National Trust of Queensland none
6.2.16 The National Trust of South Australia none
6.2.17 The National Trust of Australia (W.A.) none
6.2.18 the National Trust of Australia (Tasmania) none
6.2.19 The National Trust of Australia (Northern none
Territory)
6.2.20 the National Trust of Australia (A.C.T.) none
6.2.21 the Australian Council of National Trusts none
6.2.22 the World Wide Fund for Nature see section 30-60
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-60
The environment—Specific
Item Fund, authority or institution Special conditions
6.2.23 AAP Mawson’s Huts the gift must be made
Foundation Limited after 17 March 1997
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-70
The family
The family—General
Item Fund, authority or institution Special conditions
8.1.1 a public fund established and maintained by a see section 30-75
*non-profit company solely for the purpose
of providing money to be used in giving or
providing marriage education under the
Marriage Act 1961 to individuals in
Australia
8.1.2 a public fund: none
(a) that is established and maintained by a
*non-profit company which receives
funding from the Commonwealth to
provide family counselling or family
dispute resolution within the meaning of
the Family Law Act 1975; and
(b) that is established and maintained solely
for the purpose of providing money to be
used in providing family counselling or
family dispute resolution within the
meaning of the Family Law Act 1975 to
individuals in Australia
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-75
The family—Specific
Item Fund, authority or institution Special conditions
8.2.1 the Nursing Mothers’ Association of the gift must be made
Australia before 1 August 2001
8.2.2 the Stolen Children’s Support Fund the gift must be made
after 28 February 1999
and before 4 February
2003
8.2.3 Australian Breastfeeding Association the gift must be made
after 31 July 2001
8.2.4 Playgroup NSW (Inc). the gift must be made
after 14 April 2005
8.2.5 Playgroup WA (Inc) the gift must be made
after 13 March 2005
8.2.6 Playgroup Queensland Incorporated the gift must be made
after 14 April 2005
8.2.7 Playgroup Tasmania Inc. the gift must be made
after 14 April 2005
8.2.8 Playgroup Association Northern Territory the gift must be made
Incorporated after 24 May 2005
8.2.9 ACT Playgroups Association Incorporated the gift must be made
after 14 April 2005
8.2.10 Playgroup Victoria Inc. the gift must be made
after 23 February 2006
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-80
International affairs
International affairs—General
Item Fund, authority or institution Special conditions
9.1.1 a public fund declared by the Treasurer to be see section 30-85
a developing country relief fund
9.1.2 a public fund established and maintained by a see section 30-86
public benevolent institution solely for
providing money for the relief (including
relief by way of assistance to re-establish a
community) of people in a country other
than:
(a) Australia; and
(b) a country declared by the Minister for
Foreign Affairs to be a developing
country;
who are in distress as a result of a disaster to
which subsection 30-86(1) applies
International affairs—Specific
Item Fund, authority or institution Special conditions
9.2.1 the Australian Institute of International none
Affairs
9.2.2 the Australian National Travel Association none
9.2.3 The Foundation for Development none
Cooperation Ltd
9.2.4 Australian American Education Leadership the gift must be made
Foundation Limited after 26 January 1998
9.2.5 Sydney Talmudical College Association the gift must be made
Refugees Overseas Aid Fund after 29 January 1998
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-80
International affairs—Specific
Item Fund, authority or institution Special conditions
9.2.6 United Israel Appeal Refugee Relief Fund the gift must be made
Limited after 29 January 1998
9.2.7 the Asia Society AustralAsia Centre the gift must be made
after 6 December 1998
9.2.8 The Global Foundation the gift must be made
after 2 November 1999
9.2.9 the United Hellenic Earthquake Appeal the gift must be made
after 6 September 1999
and before 7 September
2000
9.2.10 Australia for UNHCR the gift must be made
after 27 June 2001 and
before 28 June 2007
9.2.11 Australian Red Cross Society—American the gift must be made
Disaster Fund after 9 September 2001
and before 11 September
2003
9.2.12 Lowy Institute for International Policy the gift must be made
after 13 August 2003
9.2.13 The Rotary Leadership Victoria Australian the gift must be made
Embassy for Timor-Leste Fund Limited after 7 November 2004
and before 8 November
2006
9.2.14 Russian Welfare Aid to Russia Fund the gift must be made
after 22 December 2004
and before 23 December
2006
9.2.15 Australian Red Cross Society—US 2005 the gift must be made
Hurricane Relief Appeal after 31 August 2005 and
before 1 September 2006
9.2.16 The Salvation Army Hurricane Katrina the gift must be made
Relief Appeal after 1 September 2005
and before 2 September
2006
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-85
International affairs—Specific
Item Fund, authority or institution Special conditions
9.2.17 Xanana Vocational Education Trust the gift must be made
after 20 July 2005 and
before 21 July 2007
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-90
Section 30-95
Philanthropic trusts
Philanthropic trusts—Specific
Item Fund, authority or institution Special conditions
11.2.1 the Connellan Airways Trust none
11.2.2 The Friends of the Duke of Edinburgh’s none
Award in Australia Incorporated
11.2.4 the Playford Memorial Trust none
11.2.5 The Sir Robert Menzies Memorial none
Foundation Limited
11.2.6 the Queen Elizabeth II Silver Jubilee Trust the gift must be made
for Young Australians before 1 July 2001
11.2.7 the Winston Churchill Memorial Trust none
11.2.8 The Foundation for Young Australians the gift must be made
after 6 May 2001
11.2.9 Visy Cares the gift must be made
after 19 June 2001
Cultural organisations
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-102
Cultural organisations—General
Item Fund, authority or institution Special conditions
12.1.1 a public fund that, when the gift is made, is none
on the register of *cultural organisations kept
under Subdivision 30-F
12.1.2 a public library none
12.1.3 a public museum none
12.1.4 a public art gallery none
12.1.5 an institution consisting of a public library, none
public museum and public art gallery or of
any 2 of them
Cultural organisations—Specific
Item Fund, authority or institution Special conditions
12.2.1 The Australiana Fund none
12.2.2 Australian Business Arts Foundation Ltd. the gift must be made
after 8 November 1996
12.2.3 The Centenary of Federation Trust Fund the gift must be made
after 26 November 1998
and before 1 July 2001
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-102
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-105
Other recipients
Other recipients—specific
Item Fund, authority or institution Special conditions
13.2.1 St Patrick’s Cathedral the gift must be made
Parramatta Rebuilding Fund after 24 February
1998 and before
1 July 2004
13.2.2 the Foundation for Rural and the gift must be made
Regional Renewal Public Fund after 28 March 2000
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-105
Other recipients—specific
Item Fund, authority or institution Special conditions
13.2.3 Young Endeavour Youth the gift must be made
Scheme Public Fund after 24 September
2001
13.2.4 Australian Council for Children the gift must be made
and Youth Organisations Inc. after 23 July 2002
13.2.5 St Paul’s Cathedral Restoration the gift must be made
Fund after 22 April 2002
and before 23 April
2006
13.2.6 Dunn and Lewis Youth the gift must be made
Development Foundation on or after
Limited 10 November 2003
and before
10 November 2005
13.2.7 Lord Somers Camp and Power the gift must be made
House after 4 March 2004
13.2.8 St George’s Cathedral the gift must be made
Restoration Fund after 27 September
2004 and before
28 September 2006
13.2.9 National Police Memorial the gift must be made
after 7 November
2004 and before
8 November 2006
13.2.10 The Rotary Club of Katoomba the gift must be made
Inc—Convict Roadbuilders & after 24 May 2005
Pioneer Memorial Wall Fund and before 25 May
2006
13.2.11 St Michael’s Church the gift must be made
Restoration Fund after 23 February
2006 and before
24 February 2007
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-115
Table of sections
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-125
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-125
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-130
Valuation requirements
30-200 Getting written valuations
30-205 Proceeds of the sale would have been assessable
30-210 Approved valuers
30-212 Valuations by the Commissioner
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-200
Working out the amount you can deduct for a gift of property
30-215 How much you can deduct
30-220 Reducing the amount you can deduct
Valuation requirements
(3) Each valuation must state the amount that, in the opinion of the
valuer, was:
(a) the *GST inclusive market value of the property on the day
you made the gift; or
(b) the *GST inclusive market value of the property on the day
the valuation was made.
(4) If a valuation states the *GST inclusive market value of the
property on the day the valuation was made, it must have been
made within 90 days before or after the gift was made. However,
the Commissioner may allow a longer period than this.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-210
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-215
Working out the amount you can deduct for a gift of property
(3) The exceptions to the general rule are set out in this table:
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-220
(4) For the purposes of items 3 and 4 of the table in subsection (3), the
*GST inclusive market values of the property in question are
reduced by 1/11 if you would have been entitled to an *input tax
credit if:
(a) you had *acquired the property at the time you made the gift;
and
(b) your acquisition had been for a *creditable purpose.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-225
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-227
Table of sections
Requirements
30-227 Entities to which this Subdivision applies
30-228 Content of receipt for gift
30-229 Australian Business Register must show deductibility of gifts to deductible
gift recipient
Requirements
Section 30-228
Section 30-229
Section 30-230
(c) remove the statement from the Register and enter another
statement in the Register under this section.
(5) Making, changing or removing an entry in the *Australian Business
Register as required or permitted by this section does not
contravene section 16 of the Income Tax Assessment Act 1936
(Officers to observe secrecy).
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-235
Section 30-240
Table of sections
Operative provisions
30-242 Deduction for political contributions and gifts
30-243 Amount of the deduction
30-244 When an individual is an independent candidate
30-245 When an individual is an independent member
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-242
Operative provisions
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-243
Section 30-245
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-246
Table of sections
Operative provisions
30-247 Gifts and covenants for which elections can be made
30-248 Making an election
30-249 Effect of election
30-249A Requirements—environmental property gifts
30-249B Requirements—heritage property gifts
30-249C Requirements—certain cultural property gifts
30-249D Requirements—conservation covenants
Operative provisions
Section 30-248
(2) An election under this Subdivision may also be made for entering
into a *conservation covenant, under Division 31, on or after 1 July
2003.
Section 30-249A
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-249D
(3) If you vary the election, you must give a copy of the variation to
the *Arts Secretary before you lodge your *income tax return for
the first income year to which the variation applies.
(4) The election and any variation must be in a form approved in
writing by the *Arts Secretary.
Table of sections
Operative provisions
30-255 Establishing the register
30-260 Meaning of environmental organisation
30-265 Its principal purpose must be protecting the environment
30-270 Other requirements it must satisfy
30-275 Further requirement for a body corporate or a co-operative society
30-280 What must be on the register
30-285 Removal from the register
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-255
Operative provisions
(4) It must have agreed to comply with any rules that the Treasurer and
the Minister for Environment, Sport and Territories make to ensure
that gifts made to the fund are used only for its principal purpose.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-270
No acting as a conduit
(2) It must have a policy of not acting as a mere conduit for the
donation of money or property to other organisations, bodies or
persons.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-280
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-286
Table of sections
Operative provisions
30-287 Establishing the register
30-288 Meaning of harm prevention charity
30-289 Principal activity—promoting the prevention or control of harm or abuse
30-289A Other requirements
30-289B What must be on the register
30-289C Removal from the register
Operative provisions
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-289
No acting as a conduit
(1) The institution must have a policy of not acting as a mere conduit
for the donation of money or property to other organisations,
bodies or persons.
Section 30-289C
(2) The Treasurer and the Minister may so direct the Secretary only if
the Minister has notified the Treasurer that he or she is satisfied
that an institution is a *harm prevention charity. The notification
must be in writing.
(3) The direction must be in writing and must specify the day on which
the charity and public fund are to be entered on the register. The
day must be the day on which the direction is given or a later day.
(4) The Treasurer and the Minister for Family and Community
Services must have regard to the policies and budgetary priorities
of the Commonwealth Government in deciding whether to give a
direction.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-295
Table of sections
Operative provisions
30-295 Establishing the register
30-300 Meaning of cultural organisation
30-305 What must be on the register
30-310 Removal from the register
Operative provisions
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-305
(6) It must have agreed to comply with any rules that the Treasurer and
the Minister for Communications and the Arts make to ensure that
gifts made to the fund are used only for its principal purpose.
(7) It must have agreed to give the Secretary to the Department of
Communications and Arts, at intervals of 6 months, statistical
information about gifts made to the public fund during the last 6
months.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-315
register. The day must be the day on which the direction is given or
a later day.
30-315 Index
(1) The table in this section gives you an index to this Division.
(2) It tells you:
• where in this Division you can find the detail about each
topic.
Note: In the last column there are many references in this form: item 2.2.1.
These refer to items in the tables in Subdivision 30-B.
Index
Topic Provision
1A AAP Mawson’s Huts Foundation item 6.2.23
Limited
1AA Aboriginal Education Council (N.S.W.) item 2.2.26
Incorporated
1 Academies - professional section 30-25
2 Academy of the Social Sciences in Australia item 2.2.1
Incorporated
2AA ACT Emergency Service item 12A.2.12
2AAA ACT Playgroups Association Incorporated item 8.2.9
2AB ACT Rural Fire Service item 12A.2.13
2AC ACT State Emergency Service item 12A.2.14
2A Albert Coates Memorial Trust item 5.2.17
3 Amnesty International Australia item 4.2.1
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-315
Index
Topic Provision
4 Ancillary funds item 2 of the table in
section 30-15
4A Animal welfare item 4.1.6
5 Antarctic research item 3.2.3
6 Approved research institutes item 3.1.1
7 Armed forces, auxiliaries item 5.1.2
8 Artbank item 5 of the table in
section 30-15
9 Art galleries items 12.1.4 and 12.1.5;
item 4 of the table in
section 30-15
9AA Asia Society AustralAsia Centre item 9.2.7
9A Australia for UNHCR item 9.2.10
10 Australian Academy of Science item 2.2.2
11 Australian Academy of Technological item 2.2.4
Sciences and Engineering Limited
12 Australian Academy of the Humanities for item 2.2.3
the Advancement of Scholarship in
Language, Literature, History, Philosophy
and the Fine Arts
13A Australian American Education Leadership item 9.2.4
Foundation Limited
14 Australiana Fund item 12.2.1; item 4 of the
table in section 30-15
15 Australian and New Zealand Association for item 2.2.6
the Advancement of Science
16 Australian and New Zealand College of item 1.2.13
Anaesthetists
17 Australian Antarctic Territory, payment to item 3.2.3
Commonwealth for research
17AAA Australian Breastfeeding Association item 8.2.3
17AA Australian Business Arts Foundation Ltd. item 12.2.2
17A Australian Business Register section 30-229
17B Australian Business Week Limited item 7.2.5
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-315
Index
Topic Provision
18 Australian Chinese Ex-Services National item 5.2.12
Reunion War Memorial Fund
19 Australian College of Occupational item 1.2.2
Medicine
20 Australian Conservation Foundation item 6.2.1
Incorporated
20AA Australian Council for Children and Youth item 13.2.4
Organisations Inc.
20A Australian Council of Christians and Jews item 2.2.17
20B Australian Ex-Prisoners of War Memorial item 5.2.9
Fund
21 Australian Games Uniform Company item 10.2.6
Limited
21A Australian Human Rights Education Fund item 2.2.25
22 Australian Institute of International Affairs item 9.2.1
23 Australian Ireland Fund item 2.2.7
23A Australian National Korean War item 5.2.6
Memorial Trust Fund
24 Australian National Travel Association item 9.2.2
24A Australian Nuffield Farming Scholars item 2.2.20
Association
25 Australian Postgraduate Federation in item 1.2.3
Medicine
25A Australian Primary Principals Association item 2.2.22
Education Foundation
25B Australian Red Cross Society—American item 9.2.11
Disaster Fund
25C Australian Red Cross Society—US 2005 item 9.2.15
Hurricane Relief Appeal
26 Australian Regional Council of the Royal item 1.2.11
College of Obstetricians and Gynaecologists
27 Australian Sports Foundation item 10.2.1
27A Bionic Ear Institute item 1.2.17
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-315
Index
Topic Provision
28AAA Bowral Vietnam Memorial Walk Trust item 5.2.16
Incorporated
28 Borneo Memorials Trust Fund item 5.2.5
28AA Bradman Memorial Fund item 10.2.7
28A Breast Cancer Network Australia item 1.2.15
28AB Business Against Domestic Violence item 4.2.15
Reserve
28B Centenary of Federation Trust Fund item 12.2.3
29 Central Synagogue Restoration Fund item 5.2.4
30 Centre for Independent Studies item 3.2.1
30AA C E W Bean Foundation item 5.2.26
30A CFA & Brigades Donations Fund item 12A.2.4
30B Chifley Research Centre Limited item 3.2.8
31 Child Accident Prevention Foundation of item 4.2.2
Australia
31A City of Onkaparinga Memorial Gardens item 5.2.24
Association Inc
31B Clontarf Foundation Inc. item 2.2.32
32 Cobram and District War Memorial item 5.2.3
Incorporated Fund
33 College buildings item 2.1.10
34 College of Radiologists in Australasia item 1.2.4
34AA Commonwealth Study Conferences item 2.2.23
(Australia) Incorporated
34A Community Disaster Relief (Sydney Hail item 4.2.19
Storm Assistance) Fund
35 Conditional gifts section 30-220
36 Connellan Airways Trust item 11.2.1
37 Conservation bodies section 30-55
38 Constitutional Centenary Foundation item 2.2.15
Incorporated
38A Coolgardie Honour Roll Committee Fund item 5.2.22
39 Council for Christian Education in Schools item 2.2.10
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-315
Index
Topic Provision
40 Council for Jewish Education in Schools item 2.2.11
40A Country Education Foundation of Australia item 2.2.31
Limited
40AA Country Fire Authority (Victoria) item 12A.2.2
40B Crime Stoppers South Australia Limited item 4.2.27
40C Crime Stoppers Northern Territory Program item 4.2.31
41 Cultural Bequests Program, testamentary Subdivision 30-D
gifts
42 Cultural organisations section 30-100
43 Cultural organisations, register of Subdivision 30-F
44 Defence organisations section 30-50
44AA Disaster relief—public fund for relief of item 4.1.5
people in Australia
44AB Disaster relief—public fund for relief of item 9.1.1
people in developing countries
44AC Disaster relief—public fund for relief of item 9.1.2
people in developed countries
44A Diseases—charitable institutions whose items 1.1.6 and 4.1.7
principal activity is to promote the
prevention or the control of diseases in
human beings
45 Diseases—institutions researching causes, items 1.1.4 and 1.1.5
prevention or cure
45AA Dunn and Lewis Youth Development item 13.2.6
Foundation Limited
45A Dymocks Literacy Foundation Limited item 2.2.21
46 Education—education bodies section 30-25
46AA Education—public fund for scholarships, item 2.1.13
bursaries and prizes
46A Endorsement as a deductible gift recipient Subdivision 30-BA
47 Environmental organisations section 30-55
48 Environmental organisations, register of Subdivision 30-E
48A Family and child mediation and counselling item 8.1.1
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-315
Index
Topic Provision
49 Family organisations section 30-70
49A Finding Sydney Foundation item 5.2.25
49B Fire and emergency services section 30-102
49C Fire and Emergency Services Authority of item 12A.2.7
Western Australia
50 Foundation for Development Cooperation item 9.2.3
Ltd
50A Foundation for Gambling Studies item 2.2.19
50B Foundation for Rural and Regional Renewal item 13.2.2
Public Fund
50C Foundation for Young Australians item 11.2.8
50D Freedom Across Australia item 4.2.30
51 Friends of the Duke of Edinburgh’s Award item 11.2.2
in Australia Incorporated
51AA Fund-raising events—contributions items 7 and 8 of the table in
section 30-15
51A General Sir John Monash Foundation item 2.2.27
52 Global Foundation item 9.2.8
53 Greening Australia Limited item 6.2.2
53A Guides Australia Incorporated items 10.2.2 and 10.2.3
53B Harm prevention charities items 4.1.4 and 4.1.7
54 Health organisations section 30-20
56 Heritage properties item 6 of the table in
section 30-15
57 Higher education institutions item 2.1.3
58 Hospitals items 1.1.1, 1.1.2 and 1.1.3
59 H.R.H. The Duke of Edinburgh’s item 2.2.12
Commonwealth Study Conferences
(Australia) Incorporated
60 Ian Clunies Ross Memorial Foundation item 3.2.2
61 Industrial Design Council of Australia item 7.2.1
62 Industry, trade and design section 30-65
63 International affairs section 30-80
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-315
Index
Topic Provision
63A International Social Service - Australian item 4.2.28
Branch
63B International Specialised Skills Institute item 2.2.33
Incorporated
64 Joint ownership of property section 30-225
64A Katherine District Business item 4.2.16
Re-establishment Fund
65 Landcare Australia Limited item 6.2.3
66 Libraries items 12.1.2 and 12.1.5;
item 4 of the table in
section 30-15
67 Life Education Centre items 2.2.8 and 2.2.9
67A Linton Trust 4.2.18
68 Lionel Murphy Foundation item 2.2.13
68AA Lord Somers Camp and Power House item 13.2.7
68AB Lowy Institute for International Policy item 9.2.12
68A Manly Warringah War Memorial Regional item 5.2.20
Park Remembrance Trust
69 Marcus Oldham Farm Management College item 2.2.14
70 Marriage education organisations item 8.1.1
71 Medical colleges section 30-20
72 Medical research section 30-20
72A Menzies Research Centre Public Fund item 3.2.4
72AA Monash Mt Eliza Graduate School of item 2.2.5
Business and Government Limited
72B Mount Macedon Memorial Cross item 5.2.8
Restoration, Development and Maintenance
Trust Fund
72BB Mount Macedon Memorial Cross Trust item 5.2.19
72C Mt Eliza Graduate School of Business and item 2.2.24
Government Limited
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-315
Index
Topic Provision
73 Museums items 12.1.3 and 12.1.5;
item 4 of the table in
section 30-15
73A National Breast Cancer Centre Gift Fund item 1.2.16
74 National Foundation for Australian Women item 4.2.3
Limited
74A National Nurses’ Memorial Trust item 5.2.7
75 National Parks associations section 30-55
75A National Police Memorial item 13.2.9
76 National Safety Council of Australia Limited item 4.2.4
77 National Trust bodies section 30-55; item 6 of the
table in section 30-15
77A Nature Foundation SA Incorporated item 6.2.9
78 Nature organisations section 30-55
79 Necessitous circumstances - funds for relief item 4.1.3
of persons in
80 New South Wales College of Nursing item 1.2.5
81 Nursing Mothers’ Association of Australia item 8.2.1
82 Overseas relief funds item 9.1.1
82A Page Research Centre Limited item 3.2.7
83 Pearl Watson Foundation Limited item 4.2.5
84 People in need, fund for item 4.1.3
85 Philanthropic trusts section 30-95
86 Playford Memorial Trust item 11.2.4
86A Playgroup Association Northern Territory item 8.2.8
Incorporated
86B Playgroup NSW (Inc) item 8.2.4
86C Playgroup Queensland Incorporated item 8.2.6
86D Playgroup Tasmania Inc item 8.2.7
86DA Playgroup Victoria Inc. item 8.2.10
86E Playgroup WA (Inc) item 8.2.5
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-315
Index
Topic Provision
87 Political parties and independent candidates Subdivision 30-DA
and members
88 Polly Farmer Foundation (Inc) item 2.2.16
89 Prevention of cruelty to animals section 30-45
90 Productivity section 30-65
91 Productivity Promotion Council of Australia item 7.2.2
92 Property, rules for valuing gifts section 30-15 and
Subdivision 30-C
92A Public ambulance services items 1.1.7 and 1.1.8
93 Public benevolent institutions items 4.1.1, 4.1.2 and 4.1.7
94 Queen Elizabeth II Silver Jubilee Trust for item 11.2.6
Young Australians
94AA Queensland Fire and Rescue Service item 12A.2.5
94A Receipts for gifts Subdivision 30-CA
94B Reconciliation Australia Limited item 4.2.19
95 Religious instruction/education section 30-25
95A Research Australia Limited item 3.2.6
96 Research institutions items 1.1.4 and 1.1.5
97 Residential education institutions section 30-25
97AAAA Rotary Club of Katoomba Inc—Convict item 13.2.10
Roadbuilders & Pioneer Memorial Wall
Fund
97AAA Rotary Leadership Victoria Australian item 9.2.13
Embassy for Timor-Leste Fund Limited
97AA Royal Australian Air Force (RAAF) item 5.2.13
Memorial Trust Fund
97A Royal Australian and New Zealand College item 1.2.1
of Obstetricians and Gynaecologists
98 Royal Australian and New Zealand College item 1.2.6
of Psychiatrists
99 Royal Australian College of General item 1.2.7
Practitioners
100 Royal Australasian College of Physicians item 1.2.8
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-315
Index
Topic Provision
101 Royal Australasian College of Surgeons item 1.2.9
102 Royal College of Nursing, Australia item 1.2.12
103 Royal College of Pathologists of Australasia item 1.2.10
104 Royal Societies for the Prevention of Cruelty section 30-45
to Animals
104A RSL and 6th Division Australian-Hellenic item 5.2.10
Educational Memorial Fund
104B RSL Foundation item 5.2.11
104C Rural Firefighting Service (ACT) item 12A.2.11
105 Rural school hostel buildings item 2.1.11
105A Russian Welfare Aid to Russia Fund item 9.2.14
105B Salvation Army Hurricane Katrina Relief item 9.2.16
Appeal
106 Sandakan Memorials Trust Fund item 5.2.2
107 School building funds item 2.1.10
108 Schools section 30-25
109 Scouts items 10.2.4 and 10.2.5
110 Shrine of Remembrance Restoration and item 5.2.1
Development Trust
110AA Shrine of Remembrance Foundation item 5.2.21
110A Sir Earl Page Memorial Trust item 3.2.5
110B Sir Hughie Edwards VC Foundation item 5.2.14
Incorporated
111 Sir Robert Menzies Memorial Trust item 11.2.5
Foundation Limited
111A Sir William Tyree Foundation of The item 2.2.18
Australian Industry Group
111B SouthCare Helicopter Fund item 1.2.14
112 Sports and recreation section 30-90
112AA Spreading deductions over income years Subdivision 30-DB
112AB State Emergency Service (New South item 12A.2.1
Wales)
112AC State Emergency Service (Queensland) item 12A.2.6
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-315
Index
Topic Provision
112AD State Emergency Service South Australia item 12A.2.8
112AE State Emergency Service (Tasmania) item 12A.2.10
112AF St George’s Cathedral Restoration Fund item 13.2.8
112AG St Michael’s Church Restoration Fund item 13.2.11
112A Stolen Children’s Support Fund item 8.2.2
112B St Patrick’s Cathedral Parramatta Rebuilding item 13.2.1
Fund
112BA St Paul’s Cathedral Restoration Fund item 13.2.5
112C Sydney Talmudical College Association item 9.2.5
Refugees Overseas Aid Fund
112D Tamworth Waler Memorial Fund item 5.2.23
112E Tasmania Fire Service item 12A.2.9
113 Tasmanian Conservation Trust Incorporated item 6.2.11
114 Taxation incentives for the Arts scheme items 4 and 5 of the table in
section 30-15
114A Tea Gardens / Hawks Nest War Memorial item 5.2.18
Committee
115 Technical and further education institution item 2.1.7
116 Tertiary education/TAFE section 30-25
116A Trust for Nature (Victoria) item 6.2.6
117 Trusts—ancillary item 2 of the table in
section 30-15
118 Trusts—philanthropic section 30-95
118AA United Hellenic Earthquake Appeal item 9.2.9
118A United Israel Appeal Refugee Relief Fund item 9.2.6
Limited
119 Universities - general section 30-25
120 Universities - research section 30-40
120A Valuations by Commissioner section 30-212
121 Valuers section 30-210
121A Victorian Crime Stoppers Program item 4.2.29
121B Victoria State Emergency Service item 12A.2.3
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 30-320
Index
Topic Provision
121C Vietnam War Memorial of Victoria item 5.2.27
Incorporated
122 Visy Cares item 11.2.9
122A Voluntary Service to Indigenous item 7.2.4
Communities Foundation
123 War Memorials section 30-50
123A Warringah, Australia Remembers Trust item 5.2.15
124 Welfare and rights section 30-45
125 Winston Churchill Memorial Trust item 11.2.7
126 WorldSkills Australia Inc. item 7.2.3
127 World Wide Fund for Nature Australia item 6.2.22
127A Xanana Vocational Education Trust item 9.2.17
127B Yachad Accelerated Learning Project item 2.2.34
Limited
128 Young Endeavour Youth Scheme Public item 13.2.3
Fund
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 31-1
The amount you can deduct is the difference between the market
value of the land just before and after you enter into the covenant.
Table of sections
Operative provisions
31-5 Deduction for entering into conservation covenant
31-10 Requirements for fund, authority or institution
31-15 Valuations by the Commissioner
Operative provisions
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 31-5
(3) The amount you can deduct is the difference between the *market
value of the land just before you entered the covenant and its
decreased market value just after that time, but only to the extent
that the decrease is attributable to your entering into the covenant.
Note: You can spread the deduction over a 5 year period: see
Subdivision 30-DB.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 31-10
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 32-1
Guide to Division 32
Table of sections
32-5 No deduction for entertainment expenses
32-10 Meaning of entertainment
32-15 No deduction for property used for providing entertainment
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 32-10
Note 2: If you have used your property in providing entertainment, you may
not be able to deduct an amount for the property: see section 32-15.
Note 3: Section 32-75 deals with arrangements to avoid the operation of this
section.
Subdivision 32-B—Exceptions
Table of sections
32-20 The main exception—fringe benefits
32-25 The tables set out the other exceptions
32-30 Employer expenses
32-35 Seminar expenses
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 32-20
Employer expenses
Item Section 32-5 does not stop you But the exception does not apply if
deducting a loss or outgoing for ... ...
1.1 providing food or drink to your the food or drink is provided at a
employees in an *in-house dining party, reception or other social
facility. function.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 32-30
Employer expenses
Item Section 32-5 does not stop you But the exception does not apply if
deducting a loss or outgoing for ... ...
1.2 providing food or drink to (a) you choose (under section 32-70)
individuals (other than your not to include in your assessable
employees) in an *in-house dining income $30 for each meal you
facility. provide in the *in-house dining
facility in the income year to an
individual (other than your
employee); or
(b) the food or drink is provided at a
party, reception or other social
function.
1.3 providing food or drink in a *dining the food or drink is provided at a
facility to your employees who party, reception or other social
perform most of their duties in function.
connection with:
(a) the dining facility; or
(b) a facility (of which the dining
facility forms a part) for
providing accommodation,
*recreation or travel.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 32-30
Employer expenses
Item Section 32-5 does not stop you But the exception does not apply if
deducting a loss or outgoing for ... ...
1.7 providing a meal which would be a
*fringe benefit apart from
sections 58A, 58F, 58L, 58LA and
58M of the Fringe Benefits Tax
Assessment Act 1986 (disregarding
section 58P of that Act).
1.8 giving your employee an allowance (a) the employee is a *relative of
that is included in his or her another employee of yours; and
assessable income. (b) you give the allowance to the
relative, as your employee,
because:
(i) he or she provides, or
facilitates providing,
*entertainment to do with
the other employee’s
employment; and
(ii) you expect the relative to
do so.
Note 1: In the case of a company, items 1.1, 1.2, 1.3, 1.5 and 1.8 cover
directors of the company as if they were employees: see section 32-80.
Note 2: In the case of a company, items 1.1, 1.2, 1.3 and 1.5 cover directors,
employees and property of another company that is a member of the
same wholly-owned group: see section 32-85.
Note 3: Item 1.8 has a special operation for partnerships: see section 32-90.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 32-35
Seminar expenses
Item Section 32-5 does not stop you But the exception does not apply if
deducting a loss or outgoing for ... ...
2.1 providing food, drink, (a) the seminar is a *business
accommodation or travel to an meeting; or
individual (including yourself) that (b) the *seminar’s main purpose is to
is reasonably incidental to the promote or advertise a *business
individual attending a *seminar that (or prospective *business) or its
*goes for at least 4 hours.
goods or services; or
(c) the *seminar’s main purpose is to
provide *entertainment at, or in
connection with, the seminar.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 32-45
Other expenses
Item Section 32-5 does not stop you But the exception does not apply if
deducting a loss or outgoing for ... ...
5.1 buying food or drink to do with
overtime that you work, if you
receive an allowance under an
*industrial instrument to buy the
food or drink.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 32-55
Other expenses
Item Section 32-5 does not stop you But the exception does not apply if
deducting a loss or outgoing for ... ...
5.2 providing *entertainment free to
members of the public who are
sick, disabled, poor or otherwise
disadvantaged.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 32-65
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 32-70
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 32-75
(3) You must choose by the day you lodge your *income tax return for
the income year, or within a further time allowed by the
Commissioner.
Subdivision 32-E—Anti-avoidance
Table of sections
32-75 Commissioner may treat you as having incurred entertainment expense
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 32-80
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 32-90
• paragraph 32-65(3)(b).
32-90 Partnerships
In the case of a partnership:
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 34-1
Guide to Division 34
Table of sections
34-3 What you need to read
Employees
(1) If you incur expenditure for your non-compulsory uniform, you
need to read Subdivision 34-B (which is about deductions for your
non-compulsory uniform), starting at section 34-10.
Employers
(2) If you have people working for you who want to deduct
expenditure of that kind, you need to read:
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 34-5
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 34-7
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 34-15
(2) You cannot deduct the expenditure under this Act if the *design is
not registered at the time you incur the expenditure.
(3) However, this Division does not stop you deducting expenditure
you incur in respect of your *occupation specific clothing or
*protective clothing.
What is a uniform?
(1) A uniform is one or more items of clothing (including accessories)
which, when considered as a set, distinctively identify you as a
person associated (directly or indirectly) with:
(a) your employer; or
(b) a group consisting of your employer and one or more of your
employer’s *associates.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 34-25
Meaning of disease
(3) Disease includes any mental or physical ailment, disorder, defect
or morbid condition, whether of sudden onset or gradual
development and whether of genetic or other origin.
Section 34-30
Note: This Division also applies to entities that are not employers: see
Subdivision 34-A.
Form of application
(3) The application must be:
(a) in writing; and
(b) in a form approved in writing by the *Industry Secretary; and
(c) accompanied by such information as the Industry Secretary
requires.
Section 34-33
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 34-35
Section 34-50
Removal of registration
(1) The *Industry Secretary must remove an entry for a *design from
the Register of Approved Occupational Clothing if requested to do
so by the employer who applied for the design to be registered.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 34-60
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 35-1
The deferred losses may be offset in later years against profits from
the activity or, if one of the tests is satisfied or the Commissioner
exercises a discretion, against other income.
Table of sections
Operative provisions
35-5 Object
35-10 Deferral of deductions from non-commercial business activities
35-15 Modification if you have exempt income
35-20 Modification if you become bankrupt
35-25 Application of Division to certain partnerships
35-30 Assessable income test
35-35 Profits test
35-40 Real property test
35-45 Other assets test
35-50 Apportionment
35-55 Commissioner’s discretion
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 35-5
Operative provisions
35-5 Object
(1) The object of this Division is to improve the integrity of the
taxation system by:
(a) preventing losses from non-commercial activities that are
*carried on as *businesses by individuals (alone or in
partnership) being offset against other assessable income;
and
(b) preventing pre-business capital expenditure and
post-business capital expenditure by individuals (alone or in
partnership) in relation to non-commercial activities being
deductible under section 40-880 (business related costs);
unless certain exceptions apply.
(2) This Division is not intended to apply to activities that do not
constitute *carrying on a *business (for example, the receipt of
income from passive investments).
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 35-10
Rules
(2) If the amounts attributable to the *business activity for that income
year that you could otherwise deduct under this Act for that year
exceed your assessable income (if any) from the business activity
for that year, or your share of it, this Act applies to you as if the
excess:
(a) were not incurred in that income year; and
(b) were an amount attributable to the activity that you can
deduct from assessable income from the activity for the next
income year in which the activity is carried on.
Note: There are modifications of this rule if you have exempt income (see
section 35-15) or you become bankrupt (see section 35-20).
Example: Jennifer has a salaried job, and she also carries on a business activity
consisting of selling lingerie.
Jennifer starts that activity on 1 July 2002, and for the 2002-03
income year, the activity produces assessable income of $8,000 and
deductions of $10,000. The activity does not pass any of the tests and
the discretion is not exercised so the $2,000 excess is carried over to
the next income year in which the activity is carried on.
For the 2003-04 income year, the activity produces assessable income
of $9,000 and deductions of $10,000 (excluding the $2,000 excess
from 2002-03). Again, no tests passed and no exercise of discretion.
$3,000 is carried over to the next income year (comprising the $1,000
excess for the current year, plus the previous year’s $2,000 excess)
when the activity is carried on.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 35-10
Exceptions
(4) The rule in subsection (2), (2A) or (2B) does not apply to a
*business activity for an income year if:
(b) your assessable income for that year (except any *net capital
gain) from other sources that do not relate to that activity is
less than $40,000.
(5) A professional arts business is a *business you carry on as:
(a) the author of a literary, dramatic, musical or artistic work; or
Note: The expression “author” is a technical term from copyright law.
In general, the “author” of a musical work is its composer and
the “author” of an artistic work is the artist, sculptor or
photographer who created it.
(b) a *performing artist; or
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 35-15
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 35-25
Section 35-40
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 35-45
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 35-50
35-50 Apportionment
If an asset that is being taken into account under section 35-40 or
35-45 is used during an income year partly in carrying on the
relevant *business activity and partly for other purposes, only that
part of its *reduced cost base, *market value or other value that is
attributable to its use in carrying on the business activity in that
year is taken into account for that section.
Section 35-55
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 36-1
Guide to Division 36
If you have more deductions for an income year than you have
income, the difference is a tax loss which you may be able to
deduct in a later income year.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 36-15
(4) Any amount remaining is your tax loss for the income year, which
is called a loss year.
Note 1: Some deductions are limited so that they cannot contribute to a tax
loss. See:
• section 26-55 (Limit on certain deductions)
• section 79D of the Income Tax Assessment Act 1936 (Limit on
deductions for foreign income).
Note 2: The meanings of tax loss and loss year are modified by section 36-55
for a corporate tax entity that has an amount of excess franking
offsets.
36-15 How to deduct tax losses of entities other than corporate tax
entities
(1) Your *tax loss for a *loss year is deducted in a later income year as
follows if you are not a *corporate tax entity at any time during the
later income year.
Note: See section 36-17 for the deduction of a tax loss of an entity that is a
corporate tax entity at any time during the later income year.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 36-17
General
(5) If you have 2 or more *tax losses, you deduct them in the order in
which you incurred them.
(6) A *tax loss can be deducted only to the extent that it has not
already been deducted.
(7) If you cannot deduct all or part of your *tax loss in an income year,
you can carry forward to the next income year the undeducted
amount. You then apply this Subdivision to work out if you can
deduct the tax loss in that income year.
Note: Your tax losses under this Division may be reduced if any of your
commercial debts have been forgiven in the income year: see
Subdivision 245-E of Schedule 2C to the Income Tax Assessment Act
1936.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 36-17
Note: To work out the corporate tax entity’s net exempt income: see
section 36-20.
(4) However, if the entity has *net exempt income for the later income
year and those deductions exceed the entity’s total assessable
income, the entity is to:
(a) subtract that excess from the net exempt income; and
(b) deduct the *tax loss from any net exempt income that
remains.
Note: This means there is no choice available under this subsection.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 36-17
(6) The entity must state its choice under subsection (2) or (3) in its
*income tax return for the later income year.
General
(7) If the entity has 2 or more *tax losses, the entity is to deduct them
in the order in which the entity incurred them.
(8) A *tax loss can be deducted under this section only to the extent
that it has not already been deducted.
(9) If, under this section, a *corporate tax entity does not or cannot
deduct all or part of a *tax loss in an income year, the entity can
carry forward the undeducted amount to the next income year. This
Subdivision then applies in working out how it can deduct the tax
loss in that income year.
Note: The entity’s tax losses may be reduced if any of its commercial debts
have been forgiven in the income year: see Subdivision 245-E of
Schedule 2C to the Income Tax Assessment Act 1936.
Section 36-20
was a nil amount before the recalculation (or has become a nil
amount after the recalculation).
(11) If:
(a) before the recalculation, a choice under subsection (2) or (3)
for the income year was not available to the entity; but
(b) as a result of the recalculation, the choice has (apart from
subsection (6)) become available to the entity;
the entity can make that choice by written notice given to the
Commissioner.
(12) If:
(a) the entity made a choice under subsection (2) or (3) for the
income year; but
(b) as a result of the recalculation, the entity wishes to change
that choice;
the entity can do so by written notice given to the Commissioner.
(13) Subsections (10) to (12) have effect subject to section 170 of the
Income Tax Assessment Act 1936 (about amendment of
assessments).
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 36-25
(c) the losses and outgoings (except capital losses and outgoings)
you incurred in deriving exempt income covered by
paragraph (a) or (b); and
(d) any taxes payable outside Australia on income covered by
paragraph (b).
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 36-25
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 36-25
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 36-25
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 36-30
After you become bankrupt, you cannot deduct a tax loss that you
incurred beforehand. However, you may be able to deduct
repayments of debts you incurred in the loss year.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 36-35
Table of sections
Operative provisions
36-35 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
Operative provisions
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 36-45
(a) you pay an amount in the income year for a debt that you
incurred in an earlier income year; and
(b) you have a *tax loss covered by section 36-35 for that earlier
income year;
you can deduct the amount paid, but only to the extent that it does
not exceed so much of the debt as the Commissioner is satisfied
was taken into account in calculating the amount of the tax loss.
Film losses
(2) If:
(a) you pay an amount in the income year for a debt that you
incurred in an earlier income year; and
(b) you incurred the debt in the course of deriving or gaining
*assessable film income or *exempt film income; and
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 36-50
Film losses
(2) The total of your deductions under subsection 36-40(2) for
amounts paid in the income year for debts incurred in the *loss year
cannot exceed the amount of the *film loss reduced by the sum of:
(a) your deductions under that subsection for amounts paid in
earlier income years for debts incurred in the loss year; and
(b) any amounts of the film loss deducted in earlier income
years; and
(c) any amounts of the film loss that, apart from section 36-35,
would have been deductible from your *net exempt film
income for the income year or earlier income years.
Table of sections
Operative provision
36-55 Converting excess franking offsets into tax loss
Operative provision
Section 36-55
(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);
exceeds:
(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 the refundable tax offset rules.
Example: For the 2002-2003 income year, Company E 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 subject to the
refundable tax offset rules in Division 67.
Disregarding the tax offset of $60 from the franking credit, the amount
of income tax that Company E would have to pay is $30:
( ($140 + $60 ) − $100 ) × 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.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.
Section 36-55
(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.
Example: Assume that company E did not derive any exempt income for the
2002-2003 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.
_____________________________________
*To find definitions of asterisked terms, see the Dictionary, starting at section 995-1.