Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Subject to subsections (2) and (3), the following provisions apply to a partnership as if the partnership were a person:
(a) sections 462 to 467 (inclusive);
(b) subsections 262A(4) and (5), in so far as those subsections apply to records kept under or for the purposes of this Division;
(c) Part III of the Taxation Administration Act 1953 , in so far as that Part of that Act relates to the provisions covered by paragraph (a) or (b) of this subsection.
(2) Where, by virtue of subsection (1), an offence is taken to have been committed by a partnership, that offence is taken to have been committed by each of the partners.
(3) In a prosecution of a person for an offence by virtue of subsection (2), it is a defence if the person proves that the person:
(a) did not aid, abet, counsel or procure the act or omission by virtue of which the offence was taken to have been committed; and
(b) was not in any way, by act or omission, directly or indirectly, knowingly concerned in, or party to, an act or omission by virtue of which the offence is taken to have been committed.
Income Tax Assessment Act 1936
Compilation No. 186
Compilation date: 14 October 2024
Includes amendments: Act No. 38, 2024
This compilation is in 7 volumes
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 14 October 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 (www.legislation.gov.au). 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.
Modifications
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.
Contents
Schedule 2
Part I
Part II
Schedule 2D--Tax exempt entities that become taxable
Division 57--Tax exempt entities that become taxable
Guide to Division 57
57 - 1 What this Division is about
Subdivision 57 - A--Key concepts
57 - 5 Entities to which this Division applies
Subdivision 57 - B--Predecessors of the transition taxpayer
57 - 10 Activities of transition taxpayer's predecessor attributed to transition taxpayer
Subdivision 57 - C--Time when income derived
57 - 15 Time when income derived
Subdivision 57 - D--Time when losses and outgoings incurred
57 - 20 Time when losses and outgoings incurred
Subdivision 57 - E--Assets and liabilities
57 - 25 Deemed disposal and re - acquisition of assets
57 - 30 Deemed cessation and re - assumption of liabilities
57 - 32 Division 230 financial arrangements--market value of assets and rights
57 - 33 Division 230 financial arrangements--transition taxpayer's right to receive or obligation to provide payment
57 - 35 Interpretation
Subdivision 57 - F--Superannuation deductions
57 - 40 Contributions under defined benefit superannuation schemes
57 - 45 Deduction for surplus to meet defined benefit superannuation scheme liabilities
57 - 50 Contributions generally
57 - 52 Section 57 - 50 does not apply if there is a surplus at transition time
57 - 55 Deductions reduced under both sections 57 - 40 and 57 - 50
Subdivision 57 - G--Denial of certain deductions
57 - 60 Effect of pre - transition time accrued leave entitlements
57 - 65 Treatment of bad debts
57 - 70 Treatment of superannuation lump sums and employment termination payments
Subdivision 57 - H--Domestic losses
57 - 75 Domestic losses
Subdivision 57 - J--Capital allowances and certain other deductions
57 - 85 What are the modified deduction rules and corresponding deduction provisions ?
57 - 90 Post - transition deductions--assume that the transition taxpayer had never been exempt
57 - 95 Amount of deduction not allowable for transition year
57 - 100 No elections etc. before transition time
57 - 105 Special rules for mining and quarrying
Subdivision 57 - K--Balancing adjustments
57 - 110 Apportionment of balancing adjustments
Subdivision 57 - L--Trading stock
57 - 115 Modification of trading stock provisions
Subdivision 57 - M--Imputation
57 - 120 Cancellation of franking surplus, credit or debit
57 - 125 Subsidiary
Subdivision 57 - N--Division not applicable in respect of certain plant
57 - 130 Plant or depreciating assets covered by Subdivision 58 - B of the Income Tax Assessment Act 1997
Subdivision 57 - P--Balancing adjustment on ceasing to have a Division 230 financial arrangement
57 - 135 Balancing adjustment on ceasing to have a Division 230 financial arrangement referred to in section 57 - 32
Schedule 2F--Trust losses and other deductions
Division 265--Overview of Schedule
265 - 5 What this Schedule is about
265 - 10 Diagram giving overview of Schedule
Division 266--Income tax consequences for fixed trusts of abnormal trading or change in ownership
Subdivision 266 - A--Overview of this Division
266 - 5 What this Division is about
266 - 10 Diagram giving overview of this Division
Subdivision 266 - B--Effect of change in ownership of fixed trust
266 - 15 What this Subdivision is about
266 - 20 Diagram giving overview of this Subdivision
266 - 25 Fixed trust may be denied tax loss deduction
266 - 30 Fixed trust may be required to work out its net income and tax loss in a special way
266 - 35 Fixed trust may be denied debt deduction
266 - 40 The trust must pass 50% stake test
266 - 45 The trust must meet non - fixed trust stake test
266 - 50 Deducting part of a tax loss
266 - 55 Information about non - fixed trusts with interests in fixed trust
266 - 60 Notices where requirements of section 266 - 55 are met
Subdivision 266 - C--Effect of change in ownership of unlisted widely held trust
266 - 65 What this Subdivision is about
266 - 70 Diagram giving overview of this Subdivision
266 - 75 Unlisted widely held trust may be denied tax loss deduction
266 - 80 Unlisted widely held trust may be required to work out its net income and tax loss in a special way
266 - 85 Unlisted widely held trust may be denied debt deduction
266 - 90 If abnormal trading or end of income year, trust must pass the 50% stake test
266 - 95 Deducting part of a tax loss
Subdivision 266 - D--Effect of abnormal trading on listed widely held trust
266 - 100 What this Subdivision is about
266 - 105 Diagram giving overview of this Subdivision
266 - 110 Listed widely held trust may be denied tax loss deduction
266 - 115 Listed widely held trust may be required to work out its net income and tax loss in a special way
266 - 120 Listed widely held trust may be denied debt deduction
266 - 125 There must be no abnormal trading (subject to 50% stake or business continuity exceptions)
266 - 130 Deducting part of a tax loss
266 - 135 Listed widely held unit trust may be denied tax loss deduction otherwise allowable
Subdivision 266 - E--Effect of abnormal trading on unlisted very widely held trust or wholesale widely held trust
266 - 140 What this Subdivision is about
266 - 145 Diagram giving overview of this Subdivision
266 - 150 Unlisted very widely held trust or wholesale widely held trust may be denied tax loss deduction
266 - 155 Unlisted very widely held trust or wholesale widely held trust may be required to work out its net income and tax loss in a special way
266 - 160 Unlisted very widely held trust or wholesale widely held trust may be denied debt deduction
266 - 165 There must be no abnormal trading (subject to 50% stake exception)
266 - 170 Deducting part of a tax loss
Subdivision 266 - F--Information about family trusts with interests in other trusts
266 - 175 What this Subdivision is about
266 - 180 Information about family trusts with interests in other trusts
266 - 185 Notices where requirements of section 266 - 180 are met
Division 267--Income tax consequences for non - fixed trusts of change in ownership or control
Subdivision 267 - A--Overview of this Division
267 - 5 What this Division is about
267 - 10 Diagram giving overview of this Division
Subdivision 267 - B--Deducting tax losses, and certain amounts in respect of debts, from earlier years
267 - 15 What this Subdivision is about
267 - 20 Non - fixed trust may be denied tax loss deduction
267 - 25 Non - fixed trust may be denied debt deduction
267 - 30 If certain distributions are made, the trust must pass the pattern of distributions test
267 - 35 The trust must not have previously failed to meet the condition in subsection 267 - 30(2)
267 - 40 If there are individuals with more than a 50% stake in income or capital, more than a 50% stake in income or capital must be maintained
267 - 45 Group must not begin to control the trust
267 - 50 Deducting part of a tax loss
Subdivision 267 - C--Current year net income and tax loss, and certain debts incurred in current year
267 - 55 What this Subdivision is about
267 - 60 Trust may be required to work out its net income and tax loss in a special way
267 - 65 Non - fixed trust may be denied debt deduction
267 - 70 If there are individuals with more than a 50% stake in income or capital, more than a 50% stake in income or capital must be maintained
267 - 75 Group must not begin to control trust
Subdivision 267 - D--Information about family trusts with interests in other trusts
267 - 80 What this Subdivision is about
267 - 85 Information about family trusts with interests in other trusts
267 - 90 Notices where requirements of section 267 - 85 are met
Division 268--How to work out a trust's net income and tax loss for the income year
Subdivision 268 - A--Overview of Division
268 - 5 What this Division is about
Subdivision 268 - B--Dividing the income year into periods
268 - 10 Income year of fixed trust to be divided into periods--first case
268 - 15 Income year of fixed trust to be divided into periods--second case
268 - 20 Income year of widely held unit trust to be divided into periods
268 - 25 Income year of non - fixed trust to be divided into periods
Subdivision 268 - C--Other steps in working out the net income and tax loss
268 - 30 Calculate the notional loss or net income for each period
268 - 35 How to attribute deductions to periods
268 - 40 How to attribute assessable income to periods
268 - 45 How to calculate the trust's net income for the income year
268 - 60 How to work out the trust's section 36 - 10 tax loss for the income year
Subdivision 268 - D--Rules that supplement Subdivision 268 - C if the trust is in partnership
268 - 70 How to calculate the trust's notional loss or net income for a period when the trust was a partner
268 - 75 How to calculate the trust's share of a partnership's notional loss or notional net income for a period if both entities have the same income year
268 - 80 How to calculate the trust's share of a partnership's notional loss or notional net income for a period if the entities have different income years
268 - 85 Trust's full year deductions include a share of partnership's full year deductions
Division 269--Concepts and tests applied in Divisions 266 and 267
Subdivision 269 - A--Overview of Division
269 - 5 What this Division is about
Subdivision 269 - B--Abnormal trading
269 - 10 Trading
269 - 15 Abnormal trading--general
269 - 20 Abnormal trading--suspected acquisition or merger
269 - 25 Abnormal trading--5% of units in a single transaction
269 - 30 Abnormal trading--suspected 5% of units in a series of transactions
269 - 35 Abnormal trading--20% of units traded, issued or redeemed over 60 day period
269 - 40 Abnormal trading--50% stake not maintained
269 - 45 Time at which trustee to have knowledge or suspicion
269 - 47 Abnormal trading where holding trust
269 - 49 No abnormal trading where proportionate issue of units
Subdivision 269 - C--Passing the 50% stake test etc.
269 - 50 More than a 50% stake in income or capital
269 - 55 Passing the 50% stake test
Subdivision 269 - D--Pattern of distributions test
269 - 60 Pattern of distributions test
269 - 65 Test year distribution of income or capital
269 - 70 When individual receives different percentages
269 - 75 Incomplete distributions
269 - 80 Where individual's death or breakdown of marriage or relationship
269 - 85 Arrangements to pass pattern of distributions test
Subdivision 269 - E--Control a non - fixed trust
269 - 95 Control a non - fixed trust
Subdivision 269 - F--Business continuity test
269 - 100 Passing the business continuity test
269 - 105 Modified test for income years starting on or after 1 July 2015
Division 270--Schemes to take advantage of deductions
270 - 5 What this Division is about
270 - 10 Schemes to take advantage of deductions
270 - 15 Tax consequences of schemes
270 - 20 Benefit
270 - 25 Outsider to trust
Division 271--Family trust distribution tax
271 - 5 What this Division is about
271 - 10 Family trust distribution tax
271 - 15 Tax liability where family trust makes distribution etc. outside family group
271 - 20 Tax liability where interposed trust makes distribution etc. outside family group
271 - 25 Tax liability where interposed partnership makes distribution etc. outside family group
271 - 30 Tax liability where interposed company makes distribution outside family group
271 - 35 Avoidance of double - counting
271 - 40 Exclusion of directors from liability to pay tax
271 - 45 Requirements for section 271 - 55 notice to family trust
271 - 50 Requirements for section 271 - 55 notice to interposed entity
271 - 55 Notice requiring information about non - resident distributions etc.
271 - 60 Tax liability where non - resident family trust's tax unpaid
271 - 65 Tax liability where non - resident interposed entity's tax unpaid
271 - 70 Reduction of liability where tax paid
271 - 75 Payment of family trust distribution tax
271 - 80 Late payment of family trust distribution tax
271 - 90 Notice of liability
271 - 95 Request for notice of liability
271 - 105 Amounts subject to family trust distribution tax not assessable
Division 272--Interpretation
Subdivision 272 - A--Fixed entitlement to share of income or capital
272 - 5 Fixed entitlement to share of income or capital of a trust
272 - 10 Fixed entitlement to share of income or capital of a company
272 - 15 Fixed entitlement to share of income or capital of a partnership
272 - 20 Fixed entitlement to share of income or capital held indirectly
272 - 25 Special cases of fixed entitlements held directly or indirectly
272 - 30 Additional special cases of fixed entitlements held directly or indirectly
272 - 35 Arrangements to pass fixed entitlement tests
272 - 40 Continued holding of fixed entitlement where death occurs
Subdivision 272 - B--Distribution of income or capital
272 - 45 Trust distribution to beneficiary
272 - 50 Company distribution to shareholder
272 - 55 Partnership distribution to partner
272 - 60 Other distributions of income and capital
272 - 63 Distribute indirectly
Subdivision 272 - C--Fixed trusts and non - fixed trusts
272 - 65 Fixed trust
272 - 70 Non - fixed trust
Subdivision 272 - D--Family trust etc.
272 - 75 Family trust
272 - 80 Family trust election
272 - 85 Interposed entity election
272 - 87 Passing the family control test
272 - 90 Family group
272 - 95 Family
Subdivision 272 - E--Excepted trust
272 - 100 Excepted trust
Subdivision 272 - F--Widely held unit trust
272 - 105 Widely held unit trust
Subdivision 272 - G--Unlisted widely held trust and listed widely held trust
272 - 110 Unlisted widely held trust
272 - 115 Listed widely held trust
Subdivision 272 - H--Unlisted very widely held trust
272 - 120 Unlisted very widely held trust
Subdivision 272 - I--Wholesale widely held trust
272 - 125 Wholesale widely held trust
Subdivision 272 - J--Kind of trust can be affected by ownership by higher level trust
272 - 127 Kind of trust can be affected by ownership by higher level trust
Subdivision 272 - K--Trusts beginning or ceasing to exist
272 - 130 Trusts beginning or ceasing to exist
Subdivision 272 - L--Listed public company
272 - 135 Listed public company
Subdivision 272 - M--Various definitions
272 - 140 Definitions
Schedule 2H--Demutualisation of mutual entities other than insurance companies and health insurers
Division 326--Demutualisation
Guide to Division 326
326 - 1 What this Division is about
Subdivision 326 - A--Application, key concepts and related expressions
326 - 5 Application
326 - 10 Mutual entity and demutualisation
326 - 15 Provisions relating to listing on a stock exchange
326 - 20 Demutualisation resolutions etc.
326 - 25 Demutualisation shares
326 - 30 Existing members and new members
326 - 35 Pre - CGT members and post - CGT members
Subdivision 326 - B--How demutualisation is to be effected
326 - 40 Methods of demutualisation
326 - 45 Direct method
326 - 50 Holding company method
326 - 52 Combined direct and holding company method
326 - 55 Distributing trust method
326 - 60 Continuity of beneficial interest test
Subdivision 326 - C--CGT consequences of extinguishment of membership rights in mutual entity
326 - 65 Extinguishment of membership rights
Subdivision 326 - D--CGT consequences of disposal of demutualisation shares or an interest in such shares by a member of a mutual entity where the entity or a holding company of the entity becomes a listed public company
326 - 70 Application of Subdivision
326 - 75 Capital losses made from certain disposals to be disregarded
326 - 80 Disposal by pre - CGT member of a demutualisation share (other than a demutualisation original share) or an interest in such a share before demutualisation listing day where member did not acquire membership rights by disposing of membership rights in another mutual entity
326 - 85 Disposal by pre - CGT member of a demutualisation share (other than a demutualisation original share) or an interest in such a share on or after demutualisation listing day where member did not acquire membership rights by disposing of membership rights in another mutual entity
326 - 90 Disposal by pre - CGT member of a demutualisation share (other than a demutualisation original share) or an interest in such a share where member acquired membership rights by disposing of membership rights in another mutual entity
326 - 95 Disposal by post - CGT member of a demutualisation share (other than a demutualisation original share) or an interest in such a share
326 - 100 Disposal by pre - CGT member of a demutualisation original share or a non - demutualisation bonus share, or an interest in such a share, before demutualisation listing day where member did not acquire membership rights by disposing of membership rights in another mutual entity
326 - 105 Disposal by pre - CGT member of a demutualisation original share or a non - demutualisation bonus share, or an interest in such a share, on or after demutualisation listing day where member did not acquire membership rights by disposing of membership rights in another mutual entity
326 - 110 Disposal by pre - CGT member of a demutualisation original share or a non - demutualisation bonus share, or an interest in such a share, where member acquired membership rights by disposing of membership rights in another mutual entity
326 - 115 Disposal by post - CGT member of a demutualisation original share or a non - demutualisation bonus share or an interest in such a share
326 - 120 Adjusted market value
326 - 125 Undeducted membership costs
326 - 130 Adjusted first day trading price of demutualisation shares
Subdivision 326 - E--CGT consequences of disposal of demutualisation shares or interests in such shares by a member of a mutual entity where the entity or a holding company of the entity becomes a company that is not a listed public company
326 - 135 Application of Subdivision
326 - 140 Disposal by pre - CGT member of a demutualisation share (other than a demutualisation original share) or an interest in such a share where a member did not acquire membership rights by disposing of membership rights in another mutual entity
326 - 145 Disposal by pre - CGT member of a demutualisation share (other than a demutualisation original share) or an interest in such a share where member acquired membership rights by disposing of membership rights in another mutual entity
326 - 150 Disposal by post - CGT member of a demutualisation share (other than a demutualisation original share) or an interest in such a share
326 - 155 Disposal by pre - CGT member of a demutualisation original share or a non - demutualisation bonus share, or an interest in such a share, where member did not acquire membership rights by disposing of membership rights in another mutual entity
326 - 160 Disposal by pre - CGT member of a demutualisation original share or a non - demutualisation bonus share, or an interest in such a share, where member acquired membership rights by disposing of membership rights in another mutual entity
326 - 165 Disposal by post - CGT member of a demutualisation original share or a non - demutualisation bonus share, or an interest in such a share
326 - 170 Various adjusted market values
326 - 175 Undeducted membership costs
Subdivision 326 - F--Variation of amount taken to be paid for shares or an interest in shares by a member of a mutual entity who made a capital gain or capital loss from disposal of membership rights in another mutual entity
326 - 180 Amount taken to be paid for acquisition of shares or interest by member to be increased by capital gain or reduced by capital loss
Subdivision 326 - G--CGT consequences of disposal of rights or interests resulting from extinguishment of membership rights
326 - 185 Disposal of right to receive shares in demutualised entity
326 - 190 Extinguishment of right to shares in demutualised entity by the issue of the shares
326 - 195 Disposal of right to receive shares in holding company
326 - 200 Disposal of interest in trust that holds shares in demutualised entity
Subdivision 326 - H--CGT consequences of transfer of ordinary shares
326 - 205 Transfer of share or distribution of proceeds of sale of share not to have any CGT consequences
Subdivision 326 - I--CGT consequences of disposal of demutualisation shares or an interest in such shares by a trustee on behalf of a member
326 - 210 Disposal by a trustee
Subdivision 326 - J--CGT consequences of change in rights attaching to special shares or replacement of special shares by ordinary shares
326 - 215 Change of rights to, and replacement of, special shares
Subdivision 326 - K--CGT consequences of disposal of shares or an interest in shares acquired under a roll - over provision
326 - 220 Disposal of shares or interest in shares
Subdivision 326 - L--CGT consequences of payment to member of demutualised entity out of accumulated surplus of the entity
326 - 225 Payment out of assets of demutualised entity that is not included in assessable income is taken not to be a dividend
Subdivision 326 - M--Indexation
326 - 230 Indexing of amounts
326 - 235 Indexation factor
326 - 240 Index number
Subdivision 326 - N--Non - CGT consequences of issue of demutualisation shares
326 - 245 General taxation consequences of issue of demutualisation shares