Commonwealth Consolidated Acts

[Index] [Table] [Search] [Search this Act] [Notes] [Noteup] [Previous] [Next] [Download] [Help]


Division applies notwithstanding exemption under other laws

    This Division   has effect notwithstanding anything contained in any law of the Commonwealth other than this Act.


Commonwealth Coat of Arms of Australia

Income Tax Assessment Act 1936

No.   27, 1936

Compilation No.   183

Compilation date:   1 January 2024

Includes amendments:   Act No. 61, 2023, Act No. 69, 2023 and Act No. 101, 2023

Registered:   11 January 2024

This compilation is in 7 volumes

Volume 1:   sections   1- 78A

Volume 2:   sections   79A- 121L

Volume 3:   sections   124ZM- 204

Volume 4:   sections   251R- 468

Volume 5:   Schedules

Volume 6:   Endnotes 1-4

Volume 7:   Endnote 5

Each volume has its own contents

About this compilation

This compilation

This is a compilation of the Income Tax Assessment Act 1936 that shows the text of the law as amended and in force on 1 January 2024 (the compilation date ).

The notes at the end of this compilation (the endnotes ) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register ( The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Editorial changes

For more information about any editorial changes made in this compilation, see the endnotes.


If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.

Self - repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.





Part   III--Liability to taxation

Division   10E--PDFs (pooled development funds)

Subdivision   A--Shares in PDFs

124ZM   Treatment distributions to shareholders in PDF

124ZN   Exemption of income from sale of shares in a PDF

124ZO   Shares in a PDF are not trading stock

124ZQ   Effect of company becoming a PDF

124ZR   Effect of company ceasing to be a PDF

Subdivision   B--The taxable income of PDFs

124ZS   Definitions

124ZTA   Taxable income in first year as PDF if PDF component is nil

124ZT   SME assessable income

124ZU   SME income component

124ZV   Unregulated investment component

Subdivision   C--Adjustments of the tax treatment of capital gains and capital losses of PDFs

124ZW   Definitions

124ZX   Companies to which this Subdivision   applies

124ZY   Classes of assessable income

124ZZ   Treatment of capital gains

124ZZA   Allocation of gain amounts and loss amounts to classes of assessable income

124ZZB   Assessable income etc. in relation to capital gains

124ZZD   No net capital loss

Division   11--Interest paid by companies on bearer debentures

126   Interest paid by a company on bearer debentures

127   Credit for tax paid by company

128   Assessments of tax

Division   11A--Dividends, interest and royalties paid to non - residents and to certain other persons

Subdivision   A--General

128AAA   Application of Division   to non - share dividends

128A   Interpretation

128AA   Deemed interest in respect of transfers of certain securities

128AB   Certificates relating to issue price of certain securities

128AC   Deemed interest in respect of hire - purchase and certain other agreements

128AD   Indemnification etc. agreements in relation to bills of exchange and promissory notes

128AE   Interpretation provisions relating to offshore banking units

128AF   Payments through interposed entities

128B   Liability to withholding tax

128C   Payment of withholding tax

128D   Certain income not assessable

128F   Division   does not apply to interest on certain publicly offered company debentures or debt interests

128FA   Division   does not apply to interest on certain publicly offered unit trust debentures or debt interests

128GB   Division   not to apply to interest payments on offshore borrowings by offshore banking units

128NA   Special tax payable in respect of certain securities and agreements

128NB   Special tax payable in respect of certain dealings by current and former offshore banking units

128NBA   Credits in respect of amounts assessed in relation to certain financial arrangements

128P   Objections

128R   Informal arrangements

Division   11C--Payments in respect of mining operations on Indigenous land

128U   Interpretation

128V   Liability to mining withholding tax

128W   Payment of mining withholding tax

Division   12--Oversea ships

129   Taxable income of ship - owner or charterer

130   Commissioner may require master or agent to make return

131   Determination by Commissioner

132   Assessment of tax

133   Master liable to pay

134   Notice of assessment

135   Clearance of ship

135A   Freights payable under certain agreements

Division   15--Insurance with non - residents

141   Interpretation

142   Income derived by non - resident insurer

143   Taxable income of non - resident insurer

144   Liability of agents of insurer

145   Deduction of premiums

146   Exporter to furnish information

147   Rate of tax in special circumstances

148   Reinsurance with non - residents

Division   16--Averaging of incomes

149   Average income

149A   Capital gains, abnormal income and certain death benefits to be disregarded

150   First average year

151   First application of Division   in relation to a taxpayer

152   Taxpayer not in receipt of assessable income

153   Taxpayer with no taxable income

154   Excess of allowable deductions

155   Permanent reduction of income

156   Rebate of tax for, or complementary tax payable by, certain primary producers

157   Application of Division   to primary producers

158   Application of Division

158A   Election that Division   not apply

Division   16D--Certain arrangements relating to the use of property

159GE   Interpretation

159GEA   Division   applies to certain State/Territory bodies

159GF   Residual amounts

159GG   Qualifying arrangements

159GH   Application of Division   in relation to property

159GJ   Effect of application of Division   on certain deductions etc.

159GK   Effect of application of Division   on assessability of arrangement payments

159GL   Special provision relating to Division   10C or 10D property

159GM   Special provision where cost of plant etc. is also eligible capital expenditure

159GN   Effect of use of property under qualifying arrangement for producing assessable income

159GO   Special provisions relating to partnerships

Division   16E--Accruals assessability etc. in respect of certain security payments

159GP   Interpretation

159GQ   Tax treatment of holder of qualifying security

159GQA   Accrual period

159GQB   Accrual amount

159GQC   Implicit interest rate for fixed return security

159GQD   Implicit interest rate for variable return security

159GR   Consequences of actual payments

159GS   Balancing adjustments on transfer of qualifying security

159GT   Tax treatment of issuer of a qualifying security

159GU   Effect of Division   on certain transfer profits and losses

159GV   Consequence of variation of terms of security

159GW   Effect of Division   in relation to non - residents

159GX   Effect of Division   where certain payments not assessable

159GY   Effect of Division   where qualifying security is trading stock

159GZ   Stripped securities

Division   16J--Effect of cancellation of subsidiary's shares in holding company

159GZZZC   Interpretation--general

159GZZZD   Meaning of eligible entity , eligible interest and eligible proportion

159GZZZE   Share cancellations to which this Division   applies

159GZZZF   Effect on subsidiary of share cancellations to which this Division   applies

159GZZZG   Pre - cancellation disposals of eligible interests

159GZZZH   Post - cancellation disposals of eligible interests etc.

159GZZZI   Additional application of sections   159GZZZG and 159GZZZH to associates

Division   16K--Effect of buy - backs of shares

Subdivision   AA--Application of Division   to non - share equity interests

159GZZZIA   Application of Division   to non - share dividends

Subdivision   A--Interpretation

159GZZZJ   Interpretation

159GZZZK   Explanation of terms

159GZZZL   Special buy - backs not made in ordinary course of trading on a stock exchange

159GZZZM   Purchase price in respect of buy - back

Subdivision   B--Company buying - back shares

159GZZZN   Buy - back and cancellation disregarded for certain purposes

Subdivision   C--Off - market purchases

159GZZZP   Part   of off - market purchase price is a dividend if the company is not a listed public company

159GZZZPA   No part of off - market purchase price is a dividend if the company is a listed public company

159GZZZQ   Consideration in respect of off - market purchase

Subdivision   D--On - market purchases

159GZZZR   No part of on - market purchase price is a dividend

159GZZZS   Consideration in respect of on - market purchase

Division   17--Rebates

Subdivision   A--Concessional rebates

159H   Application

Subdivision   AB--Lump sum payments in arrears

159ZR   Interpretation

159ZRA   Eligibility for rebate

159ZRB   Calculation of rebate

159ZRC   Notional tax amount for recent accrual years

159ZRD   Notional tax amount for distant accrual years

Subdivision   B--Miscellaneous

160AAAA   Tax rebate for low income aged persons and pensioners

160AAAB   Tax rebate for low income aged persons and pensioners--trustees assessed under section   98

160AAA   Rebate in respect of certain benefits etc.

160AAB   Rebate in respect of amounts assessable under section   26AH

160AD   Maximum amount of rebates

160ADA   Most tax offsets under the 1997 Assessment Act are treated as rebates

Part   IIIB--Australian branches of foreign banks

Division   1--Preliminary

160ZZVA   Object

160ZZVB   Application

160ZZV   Definitions

160ZZW   Certain provisions to apply as if Australian branch of foreign bank were a separate legal entity

Division   2--Provisions relating to income tax

160ZZX   Income of branch to have Australian source

160ZZZ   Notional borrowing by branch from bank

160ZZZA   Notional payment of interest by branch to bank

160ZZZC   Offshore banking units

160ZZZE   Notional derivative transactions between branch and bank

160ZZZF   Notional foreign exchange transactions between branch and bank

160ZZZG   Losses

160ZZZH   Net capital losses

160ZZZI   Certain transactions to be disregarded

Division   3--Provisions relating to withholding tax

160ZZZJ   Withholding tax on interest paid by branch to bank

Division   4--Extension of Part   to Australian branches of foreign financial entities

160ZZZK   Treatment like Australian branches of foreign banks

Division   5--Modifications relating to hybrid mismatch rules

160ZZZL   Certain "hybrid mismatch" deductions denied

160ZZZN   Adjusting if Australian branch derives dual inclusion income in a later year

160ZZZP   Dual inclusion income not to be applied more than once

160ZZZR   Interpretation

Part   IV--Returns and assessments

161   Annual returns

161A   Form and content of returns

161AA   Contents of returns of full self - assessment taxpayers

161G   Tax agent to give taxpayer copy of notice of assessment

162   Further returns and information

163   Special returns

166   Assessment

166A   Deemed assessment

167   Default assessment

168   Special assessment

169   Assessments on all persons liable to tax

169AA   Consolidated assessments

169A   Reliance by Commissioner on returns and statements

170   Amendment of assessments

170A   Amendment of assessments--interaction with other Acts

170B   Protection for anticipation of certain discontinued announcements

170C   Power of Commissioner to reduce amount of tax payable in certain cases

171   Where no notice of assessment served

171A   Limited period to make assessments for nil liability returns for the 2003 - 04 year of income or earlier

172   Refunds of amounts overpaid

172A   Consequences of amendment of assessments of tax offset refunds

173   Amended assessment to be an assessment

174   Notice of assessment

175   Validity of assessment

175A   Objections against assessments

Part   IVA--Schemes to reduce income tax

177A   Interpretation

177B   Operation of Part

177C   Tax benefits

177CB   The bases for identifying tax benefits

177D   Schemes to which this Part applies

177DA   Schemes that limit a taxable presence in Australia

177E   Stripping of company profits

177EA   Creation of franking debit or cancellation of franking credits

177EB   Cancellation of franking credits--consolidated groups

177F   Cancellation of tax benefits etc.

177G   Amendment of assessments

177H   Diverted profits tax--objects

177J   Diverted profits tax--application

177K   Diverted profits tax--$25 million income test

177L   Diverted profits tax--sufficient foreign tax test

177M   Diverted profits tax--sufficient economic substance test

177N   Diverted profits tax--consequences

177P   Diverted profits tax--liability

177Q   Diverted profits tax--general interest charge on unpaid diverted profits tax or shortfall interest charge

177R   Diverted profits tax--when shortfall interest charge is payable

Part   VA--Tax file numbers

Division   1--Preliminary

202   Objects of this Part

202A   Interpretation

202AA   Definition of eligible PAYG payment

202AB   Declaration that an arrangement is, or is not, a unit trust

Division   2--Issuing of tax file numbers

202B   Application for tax file number

202BA   Issuing of tax file numbers

202BB   Current tax file number

202BC   Deemed refusal by Commissioner

202BD   Interim notices

202BE   Cancellation of tax file numbers

202BF   Alteration of tax file numbers

Division   3--Quotation of tax file numbers by recipients of eligible PAYG payments

202C   TFN declarations by recipients of eligible PAYG payments

202CA   Operation of TFN declaration

202CB   Quotation of tax file number in TFN declaration

202CC   Making a replacement TFN declaration in place of an ineffective declaration

202CD   Sending of TFN declaration to Commissioner

202CE   Effect of incorrect quotation of tax file number

202CEA   Validation notices

202CF   Payer must notify Commissioner if no TFN declaration by recipient

202CG   Disclosing recipients' tax file numbers to payers

Division   4--Quotation of tax file numbers in connection with certain investments

202D   Explanation of terms: investment, investor, investment body

202DB   Quotation of tax file numbers in connection with investments

202DC   Method of quoting tax file number

202DD   Investor excused from quoting tax file number in certain circumstances

202DDB   Quotation of tax file number in connection with indirectly held investment

202DE   Securities dealer to inform the investment body of tax file number

202DF   Effect of incorrect quotation of tax file number

202DG   Investments held jointly

202DH   Tax file number quoted for superannuation or surcharge purposes taken to be quoted for purposes of the taxation of eligible termination payments

202DHA   Tax file number quoted for Division   3 purposes taken to have been quoted for superannuation purposes

202DI   Tax file number quoted for RSA purposes taken to be quoted for purposes of the taxation of superannuation benefits

202DJ   Tax file number quoted for purposes of taxation of superannuation benefits taken to be quoted for surcharge purposes

Division   4A--Quotation of tax file numbers in connection with farm management deposits

202DL   Quotation of tax file number

202DM   Effect of incorrect quotation of tax file number

Division   4B--Quotation of tax file numbers in connection with certain closely held trusts

202DN   Application of Division

202DO   Quotation of tax file numbers

202DP   Trustee must report quoted tax file numbers

202DR   Effect of incorrect quotation of tax file number

Division   5--Exemptions

202EA   Persons receiving certain pensions etc.--employment

202EB   Persons receiving certain pensions etc.--investments

202EC   Entities not required to lodge income tax returns

202EE   Non - residents

202EG   Manner of completing declarations

202EH   Declarations under this Division   to be retained in certain circumstances

Division   6--Review of decisions

202F   Review of decisions

202FA   Statements to accompany notification of decisions

Division   8--Tax file number sharing and verification

203   Verification of tax file numbers

204   Disclosure of tax file numbers to certain registrars

AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback