INCOME TAX ASSESSMENT ACT 1997

4.1. Who must pay income tax
4.5. Meaning of you
4.10. How to work out how much income tax you must pay
4.15. How to work out your taxable income
4.25. Special provisions for working out your basic income tax liability

Division 5--How to work out when to pay your income tax

5.1. What this Division is about

Subdivision 5-A--How to work out when to pay your income tax

5.5. When income tax is payable
5.10. When shortfall interest charge is payable
5.15. General interest charge payable on unpaid income tax or shortfall interest charge

Division 6--Assessable income and exempt income

6.1. Diagram showing relationships among concepts in this Division
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

Division 8--Deductions

8.1. General deductions
8.5. Specific deductions
8.10. No double deductions

PART 1-4--CHECKLISTS OF WHAT IS COVERED BY CONCEPTS USED IN THE CORE PROVISIONS

Division 9--Entities that must pay income tax

9.1A. Effect of this Division
9.1. List of entities
9.5. Entities that work out their income tax by reference to something other than taxable income

Division 10--Particular kinds of assessable income

10.1. Effect of this Division
10.5. List of provisions about assessable income

Division 11--Particular kinds of non-assessable income

Subdivision 11-A--Lists of classes of exempt income

11.1A. Effect of this Subdivision
11.1. Overview
11.5. Entities that are exempt, no matter what kind of ordinary or statutory income they have
11.15. Ordinary or statutory income which is exempt

Subdivision 11-B--Particular kinds of non-assessable non-exempt income

11.50. Effect of this Subdivision
11.55. List of non-assessable non-exempt income provisions

Division 12--Particular kinds of deductions

12.1. Effect of this Division
12.5. List of provisions about deductions

Division 13--Tax offsets

13.1A. Effect of this Division
13.1. List of tax offsets

CHAPTER 2--Liability rules of general application

PART 2-1--ASSESSABLE INCOME

Division 15--Some items of assessable income

15.1. What this Division is about
15.2. Allowances and other things provided in respect of employment or services
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
15.23. Payments of resale royalties by resale royalty 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 or geothermal exploration information
15.45. Amounts paid under forestry agreements
15.46. Amounts paid under forestry managed investment schemes
15.50. Work in progress amounts
15.55. Certain amounts paid under funeral policy
15.60. Certain amounts paid under scholarship plan
15.70. Reimbursed car expenses
15.75. Bonuses
15.80. Franked distributions entitled to a foreign income tax deduction--Additional Tier 1 capital exception

Division 17--Effect of GST etc

17.1. What this Division is about
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
17.30. Special credits because of indirect tax transition
17.35. Certain sections not to apply to certain assets or expenditure

Division 20--Amounts included to reverse the effect of past deductions

20.1. What this Division is about
20.5. Other provisions that reverse the effect of deductions

Subdivision 20-A--Insurance, indemnity or other recoupment for deductible expenses

20.10. What this Subdivision is about
20.15. How to use this Subdivision
20.20. Assessable recoupments
20.25. What is recoupment?
20.30. Tables of deductions for which recoupments are assessable
20.35. If the expense is deductible in a single income year
20.40. If the expense is deductible over 2 or more income years
20.45. Effect of balancing charge
20.50. If the expense is only partially deductible
20.55. Meaning of previous recoupment law
20.60. If you are the only entity that can deduct an amount for the loss or outgoing
20.65. If 2 or more entities can deduct amounts for the loss or outgoing

Subdivision 20-B--Disposal of a car for which lease payments have been deducted

20.100. What this Subdivision is about
20.105. Map of this Subdivision
20.110. Disposal of a leased car for profit
20.115. Working out the profit on the disposal
20.120. Meaning of notional depreciation
20.125. Disposal of a leased car for profit
20.130. Successive leases
20.135. No amount included if earlier disposal for market value
20.140. Reducing the amount to be included if there has been an earlier disposal
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 small business entities
20.160. Disposal of an interest in a car

PART 2-5--RULES ABOUT DEDUCTIBILITY OF PARTICULAR KINDS OF AMOUNTS

Division 25--Some amounts you can deduct

25.1. What this Division is about
25.5. Tax-related expenses
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.
25.47. Misappropriation where a balancing adjustment event occurs
25.50. Payments of pensions, gratuities or retiring allowances
25.55. Payments to associations
25.60. Parliament election expenses
25.65. Local government election expenses
25.70. Deduction for election expenses does not extend to entertainment
25.75. Rates and land taxes on premises used to produce mutual receipts
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
25.100. Travel between workplaces
25.110. Capital expenditure to terminate lease etc.
25.115. Deduction for payment of rent from land investment by operating entity to asset entity in relation to approved economic infrastructure facility
25.120. Transitional--deduction for payment of rent from land investment by operating entity to asset entity
25.125. COVID-19 tests

Division 26--Some amounts you cannot deduct, or cannot deduct in full

26.1. What this Division is about
26.5. Penalties
26.10. Leave payments
26.15. Franchise fees windfall tax
26.17. Commonwealth places windfall tax
26.19. Rebatable benefits
26.20. Assistance to students
26.22. Political contributions and gifts
26.25. Interest or royalty
26.25A. Payments to employees--labour mobility programs
26.26. Non-share distributions and dividends
26.30. Relative's travel expenses
26.31. Travel related to use of residential premises as residential accommodation
26.35. Reducing deductions for amounts paid to related entities
26.40. Maintaining your family
26.45. Recreational club expenses
26.47. Non-business boating activities
26.50. Expenses for a leisure facility
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
26.68. Loss from disposal of eligible venture capital investments
26.70. Loss from disposal of venture capital equity
26.75. Excess non-concessional contributions tax cannot be deducted
26.80. Financing costs on loans to pay superannuation contribution
26.85. Borrowing costs on loans to pay life insurance premiums
26.90. Superannuation supervisory levy
26.95. Superannuation guarantee charge
26.96. Laminaria and Corallina decommissioning levy cannot be deducted
26.97. National Disability Insurance Scheme expenditure
26.98. Division 293 tax cannot be deducted
26.99. Excess transfer balance tax cannot be deducted
26.100. Expenditure attributable to water infrastructure improvement payments
26.102. Expenses associated with holding vacant land
26.105. Non-compliant payments for work and services

Division 27--Effect of input tax credits etc

27.1. What this Division is about

Subdivision 27-A--General

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
27.35. Certain sections not to apply to certain assets or expenditure

Subdivision 27-B--Effect of input tax credits etc

27.80. Cost or opening adjustable value of depreciating assets reduced for input tax credits
27.85. Cost or opening adjustable value of depreciating assets reduced: decreasing adjustments
27.87. Certain decreasing adjustments included in assessable income
27.90. Cost or opening adjustable value of depreciating assets increased: increasing adjustments
27.92. Certain increasing adjustments can be deducted
27.95. Balancing adjustment events
27.100. Pooling
27.105. Other Division 40 expenditure
27.110. Input tax credit etc. relating to 2 or more things

Division 28--Car expenses

28.1. What this Division is about
28.5. Map of this Division

Subdivision 28-A--Deductions for car expenses

28.10. Application of Division 28
28.12. Car expenses
28.13. Meaning of car expense

Subdivision 28-B--Choosing which method to use

28.14. What this Subdivision is about
28.15. Choosing between the 2 methods
28.20. Rules governing choice of method

Subdivision 28-C--The "cents per kilometre" method

28.25. How to calculate your deduction
28.30. Capital allowances
28.35. Substantiation

Subdivision 28-F--The "log book" method

28.90. How to calculate your deduction
28.95. Eligibility
28.100. Substantiation

Subdivision 28-G--Keeping a log book

28.105. What this Subdivision is about
28.110. Steps for keeping a log book
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

Subdivision 28-H--Odometer records for a period

28.135. What this Subdivision is about
28.140. How to keep odometer records for a car for a period

Subdivision 28-I--Retaining the log book and odometer records

28.150. Retaining the log book for the retention period
28.155. Retaining odometer records

Subdivision 28-J--Situations where you cannot use, or do not need to use, one of the 2 methods

28.160. What this Subdivision is about
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 recipients and payers of certain withholding payments

Division 30--Gifts or contributions

30.1. What this Division is about
30.5. How to find your way around this Division
30.10. Index

Subdivision 30-A--Deductions for gifts or contributions

30.15. Table of gifts or contributions that you can deduct
30.17. Requirements for certain recipients

Subdivision 30-B--Tables of recipients for deductible gifts

30.20. Health
30.25. Education
30.30. Gifts that must be for certain purposes
30.35. Rural schools hostel buildings
30.37. Scholarship etc. funds
30.40. Research
30.45. Welfare and rights
30.45A. Australian disaster relief funds--declarations by Minister
30.46. Australian disaster relief funds--declarations under State and Territory law
30.50. Defence
30.55. The environment
30.60. Gifts to a National Parks body or conservation body must satisfy certain requirements
30.65. Industry, trade and design
30.70. The family
30.75. Marriage education organisations must be approved
30.80. International affairs
30.85. Developing country relief funds
30.86. Developed country disaster relief funds
30.90. Sports and recreation
30.95. Philanthropic trusts
30.100. Cultural organisations
30.102. Fire and emergency services
30.105. Other recipients

Subdivision 30-BA--Endorsement of deductible gift recipients

30.115. What this Subdivision is about
30.120. Endorsement by Commissioner
30.125. Entitlement to endorsement
30.130. Maintaining a gift fund
30.180. How this Subdivision applies to government entities

Subdivision 30-C--Rules applying to particular gifts of property

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
30.215. How much you can deduct
30.220. Reducing the amount you can deduct
30.225. Gift of property by joint owners

Subdivision 30-CA--Administrative requirements relating to ABNs

30.226. What this Subdivision is about
30.227. Entities to which this Subdivision applies
30.228. Content of receipt for gift or contribution
30.229. Australian Business Register must show deductibility of gifts to deductible gift recipient

Subdivision 30-DA--Donations to political parties and independent candidates and members

30.241. What this Subdivision is about
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

Subdivision 30-DB--Spreading certain gift and covenant deductions over up to 5 income years

30.246. What this Subdivision is about
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
30.249D.Requirements--conservation covenants

Subdivision 30-E--Register of environmental organisations

30.250. What this Subdivision is about
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

Subdivision 30-EA--Register of harm prevention charities

30.286. What this Subdivision is about
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

Subdivision 30-F--Register of cultural organisations

30.290. What this Subdivision is about
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

Subdivision 30-G--Index to this Division

30.315. Index
30.320. Effect of this Subdivision

Division 31--Conservation covenants

31.1. What this Division is about
31.5. Deduction for entering into conservation covenant
31.10. Requirements for fund, authority or institution
31.15. Valuations by the Commissioner

Division 32--Entertainment expenses

32.1. What this Division is about

Subdivision 32-A--No deduction for entertainment expenses

32.5. No deduction for entertainment expenses
32.10. Meaning of entertainment
32.15. No deduction for property used for providing entertainment

Subdivision 32-B--Exceptions

32.20. The main exception--fringe benefits
32.25. The tables set out the other exceptions
32.30. Employer expenses
32.35. Seminar expenses
32.40. Entertainment industry expenses
32.45. Promotion and advertising expenses
32.50. Other expenses

Subdivision 32-C--Definitions relevant to the exceptions

32.55. In-house dining facility (employer expenses table items 1.1 and 1.2)
32.60. Dining facility (employer expenses table item 1.3)
32.65. Seminars (seminar expenses table item 2.1)

Subdivision 32-D--In-house dining facilities

32.70. $30 is assessable for each meal provided to non-employee in an in-house dining facility

Subdivision 32-E--Anti-avoidance

32.75. Commissioner may treat you as having incurred entertainment expense

Subdivision 32-F--Special rules for companies and partnerships

32.80. Company directors
32.85. Directors, employees and property of wholly-owned group company
32.90. Partnerships

Division 34--Non-compulsory uniforms

34.1. What this Division is about
34.3. What you need to read

Subdivision 34-C--(which is about registering the design of a non-compulsory uniform), starting at section 34-25; and

Subdivision 34-D--(which is about appeals from Industry Secretary's decision), starting at section 34-40.

Subdivision 34-A--Application of Division 34

34.5. This Division applies to employees and others
34.7. This Division applies to employers and others

Subdivision 34-B--Deduction for your non-compulsory uniform

34.10. What you can deduct
34.15. What is a non-compulsory uniform?
34.20. What are occupation specific clothing and protective clothing?

Subdivision 34-C--Registering the design of a non-compulsory uniform

34.25. Application to register the design
34.30. Industry Secretary's decision on application
34.33. Written notice of decision
34.35. When uniform becomes registered

Subdivision 34-D--Appeals from Industry Secretary's decision

34.40. Review of decisions by the Administrative Appeals Tribunal

Subdivision 34-E--The Register of Approved Occupational Clothing

34.45. Keeping of the Register
34.50. Changes to the Register

Subdivision 34-F--Approved occupational clothing guidelines

34.55. Approved occupational clothing guidelines

Subdivision 34-G--The Industry Secretary

34.60. Industry Secretary to give Commissioner information about entries
34.65. Delegation of powers by Industry Secretary

Division 35--Deferral of losses from non-commercial business activities

35.1. What this Division is about
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

Division 36--Tax losses of earlier income years

36.1. What this Division is about

Subdivision 36-A--Deductions for tax losses of earlier income years

36.10. How to calculate a tax loss for an income year
36.15. How to deduct tax losses of entities other than corporate tax entities
36.17. How to deduct tax losses of corporate tax entities
36.20. Net exempt income
36.25. Special rules about tax losses

Subdivision 36-B--Effect of you becoming bankrupt

36.30. What this Subdivision is about
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

Subdivision 36-C--Excess franking offsets

36.50. What this Subdivision is about
36.55. Converting excess franking offsets into tax loss

CHAPTER 2--Liability rules of general application

PART 2-10----CAPITAL ALLOWANCES: RULES ABOUT DEDUCTIBILITY OF CAPITAL EXPENDITURE

Division 40--Capital allowances

40.1. What this Division is about
40.10. Simplified outline of this Division

Subdivision 40-A--Objects of Division

40.15. Objects of Division

Subdivision 40-B--Core provisions

40.20. What this Subdivision is about
40.25. Deducting amounts for depreciating assets
40.27. Further reduction of deduction for second-hand assets in residential property
40.30. What a depreciating asset is
40.35. Jointly held depreciating assets
40.40. Meaning of hold a depreciating asset
40.45. Assets to which this Division does not apply
40.50. Assets for which you deduct under another Subdivision
40.53. Alterations etc. to certain depreciating assets
40.55. Use of the "cents per kilometre" car expense deduction method
40.60. When a depreciating asset starts to decline in value
40.65. Choice of methods to work out the decline in value
40.70. Diminishing value method
40.72. Diminishing value method for post-9 May 2006 assets
40.75. Prime cost method
40.80. When you can deduct the asset's cost
40.82. Assets costing less than $150,000--medium sized businesses--assets first acquired between 2 April 2019 and 31 December 2020
40.85. Meaning of adjustable value and opening adjustable value of a depreciating asset
40.90. Debt forgiveness
40.95. Choice of determining effective life
40.100. Commissioner's determination of effective life
40.102. Capped life of certain depreciating assets
40.103. Effective life and remaining effective life of certain vessels
40.105. Self-assessing effective life
40.110. Recalculating effective life
40.115. Splitting a depreciating asset
40.120. Replacement spectrum licences
40.125. Merging depreciating assets
40.130. Choices
40.135. Certain anti-avoidance provisions
40.140. Getting tax information from associates

Subdivision 40-C--Cost

40.170. What this Subdivision is about
40.175. Cost
40.180. First element of cost
40.185. Amount you are taken to have paid to hold a depreciating asset or to receive a benefit
40.190. Second element of cost
40.195. Apportionment of cost
40.200. Exclusion from cost
40.205. Cost of a split depreciating asset
40.210. Cost of merged depreciating assets
40.215. Adjustment: double deduction
40.220. Cost reduced by amounts not of a capital nature
40.222. Cost reduced by water infrastructure improvement expenditure
40.225. Adjustment: acquiring a car at a discount
40.230. Adjustment: car limit
40.235. Adjustment: National Disability Insurance Scheme costs

Subdivision 40-D--Balancing adjustments

40.280. What this Subdivision is about
40.285. Balancing adjustments
40.290. Reduction for non-taxable use
40.291. Reduction for second-hand assets used in residential property
40.292. Adjustments--assets used for both general tax purposes and R&D activities
40.293. Adjustments--partnership assets used for both general tax purposes and R&D activities
40.295. Meaning of balancing adjustment event
40.300. Meaning of termination value
40.305. Amount you are taken to have received under a balancing adjustment event
40.310. Apportionment of termination value
40.320. Car to which section 40-225 applies
40.325. Adjustment: car limit
40.335. Deduction for in-house software where you will never use it
40.340. Roll-over relief
40.345. What the roll-over relief is
40.350. Additional consequences
40.360. Notice to allow transferee to work out how this Division applies
40.362. Roll-over relief for holders of vessels covered by certificates under the Shipping Reform (Tax Incentives) Act 2012
40.363. Roll-over relief for interest realignment arrangements
40.364. Interest realignment adjustments
40.365. Involuntary disposals
40.370. Balancing adjustments where there has been use of different car expense methods

Subdivision 40-E--Low-value and software development pools

40.420. What this Subdivision is about
40.425. Allocating assets to a low-value pool
40.430. Rules for assets in low-value pools
40.435. Private or exempt use of assets
40.440. How you work out the decline in value of assets in low-value pools
40.445. Balancing adjustment events
40.450. Software development pools
40.455. How to work out your deduction
40.460. Your assessable income includes consideration for pooled software

Subdivision 40-F--Primary production depreciating assets

40.510. What this Subdivision is about
40.515. Water facilities, horticultural plants, fodder storage assets and fencing assets
40.520. Meaning of water facility, horticultural plant, fodder storage asset and fencing asset
40.525. Conditions
40.530. When declines in value start
40.535. Meaning of horticulture and commercial horticulture
40.540. How you work out the decline in value for water facilities
40.545. How you work out the decline in value for horticultural plants
40.548. How you work out the decline in value for fodder storage assets
40.551. How you work out the decline in value for fencing assets
40.555. Amounts you cannot deduct
40.560. Non-arm's length transactions
40.565. Extra deduction for destruction of a horticultural plant
40.570. How this Subdivision applies to partners and partnerships
40.575. Getting tax information if you acquire a horticultural plant

Subdivision 40-G--Capital expenditure of primary producers and other landholders

40.625. What this Subdivision is about
40.630. Landcare operations
40.635. Meaning of landcare operation
40.640. Meaning of approved management plan
40.645. Electricity and telephone lines
40.650. Amounts you cannot deduct under this Subdivision
40.655. Meaning of connecting power to land or upgrading the connection and metering point
40.660. Non-arm's length transactions
40.665. How this Subdivision applies to partners and partnerships
40.670. Approval of persons as farm consultants
40.675. Review of decisions relating to approvals

Subdivision 40-H--Capital expenditure that is immediately deductible

40.725. What this Subdivision is about
40.730. Deduction for expenditure on exploration or prospecting
40.735. Deduction for expenditure on mining site rehabilitation
40.740. Meaning of ancillary mining activities and mining building site
40.745. No deduction for certain expenditure
40.750. Deduction for payments of petroleum resource rent tax
40.755. Environmental protection activities
40.760. Limits on deductions from environmental protection activities
40.765. Non-arm's length transactions

Subdivision 40-I--Capital expenditure that is deductible over time

40.825. What this Subdivision is about
40.830. Project pools
40.832. Project pools for post-9 May 2006 projects
40.835. Reduction of deduction
40.840. Meaning of project amount
40.845. Project life
40.855. When you start to deduct amounts for a project pool
40.860. Meaning of mining capital expenditure
40.865. Meaning of transport capital expenditure
40.870. Meaning of transport facility
40.875. Meaning of processed minerals and minerals treatment
40.880. Business related costs
40.885. Non-arm's length transactions

Subdivision 40-J--Capital expenditure for the establishment of trees in carbon sink forests

40.1000.What this Subdivision is about
40.1005.Deduction for expenditure for establishing trees in carbon sink forests
40.1010.Expenditure for establishing trees in carbon sink forests
40.1015.Carbon sequestration by trees
40.1020.Certain expenditure disregarded
40.1025.Non-arm's length transactions
40.1030.Extra deduction for destruction of trees in carbon sink forest
40.1035.Getting information if you acquire a carbon sink forest

Subdivision 40-K--Farm-in farm-out arrangements

40.1095.What this Subdivision is about
40.1100.Meaning of farm-in farm-out arrangement and exploration benefit
40.1105.Treatment of certain exploration benefits received under farm-in farm-out arrangements
40.1110.Cost of split interests resulting from farm-in farm-out arrangements
40.1115.Deductions relating to receipt of exploration benefits
40.1120.Cost base and reduced cost base of exploration benefits etc.
40.1125.Effect of exploration benefits on the cost of mining, quarrying or prospecting information
40.1130.Consequences of certain exploration benefits provided under farm-in farm-out arrangements

Division 41--Additional deduction for certain new business investment

41.1. What this Division is about
41.5. Object of Division
41.10. Entitlement to deduction for investment
41.15. Amount of deduction
41.20. Recognised new investment amount
41.25. Investment commitment time
41.30. First use time
41.35. New investment threshold

Division 43--Deductions for capital works

43.1. What this Division is about
43.2. Key concepts used in this Division

Subdivision 43-A--Key operative provisions

43.5. What this Subdivision is about
43.10. Deductions for capital works
43.15. Amount you can deduct
43.20. Capital works to which this Division applies
43.25. Rate of deduction
43.30. No deduction until construction is complete
43.35. Requirement for registration under the Industry Research and Development Act
43.40. Deduction for destruction of capital works
43.45. Certain anti-avoidance provisions
43.50. Links and signposts to other parts of the Act
43.55. Anti-avoidance--arrangement etc. with tax-exempt entity

Subdivision 43-B--Establishing the deduction base

43.60. What this Subdivision is about
43.65. Explanatory material
43.70. What is construction expenditure?
43.72. Meaning of forestry road, timber operation and timber mill building
43.75. Construction expenditure area
43.80. When capital works begin
43.85. Pools of construction expenditure
43.90. Table of intended use at time of completion of construction
43.95. Meaning of hotel building and apartment building
43.100. Certificates by Industry Innovation and Science Australia

Subdivision 43-C--Your area and your construction expenditure

43.105. What this Subdivision is about
43.110. Explanatory material
43.115. Your area and your construction expenditure--owners
43.120. Your area and your construction expenditure--lessees and quasi-ownership right holders
43.125. Lessees' or right holders' pools can revert to owner
43.130. Identifying your area on acquisition or disposal

Subdivision 43-D--Deductible uses of capital works

43.135. What this Subdivision is about
43.140. Using your area in a deductible way
43.145. Using your area in the 4% manner
43.150. Meaning of industrial activities

Subdivision 43-E--Special rules about uses

43.155. What this Subdivision is about
43.160. Your area is used for a purpose if it is maintained ready for use for the purpose
43.165. Temporary cessation of use
43.170. Own use--capital works other than hotel and apartment buildings
43.175. Own use--hotel and apartment buildings
43.180. Special rules for hotel and apartment buildings
43.185. Residential or display use
43.190. Use of facilities not commonly provided, and of certain buildings used to operate a hotel, motel or guest house
43.195. Use for R&D activities must be in connection with a business

Subdivision 43-F--Calculation of deduction

43.200. What this Subdivision is about
43.205. Explanatory material
43.210. Deduction for capital works begun after 26 February 1992
43.215. Deduction for capital works begun before 27 February 1992
43.220. Capital works taken to have begun earlier for certain purposes

Subdivision 43-G--Undeducted construction expenditure

43.225. What this Subdivision is about
43.230. Calculating undeducted construction expenditure--common step
43.235. Post-26 February 1992 undeducted construction expenditure
43.240. Pre-27 February 1992 undeducted construction expenditure

Subdivision 43-H--Balancing deduction on destruction of capital works

43.245. What this Subdivision is about
43.250. The amount of the balancing deduction
43.255. Amounts received or receivable
43.260. Apportioning amounts received for destruction

Division 45--Disposal of leases and leased plant

45.1. What this Division is about
45.5. Disposal of leased plant or lease
45.10. Disposal of interest in partnership
45.15. Disposal of shares in 100% subsidiary that leases plant
45.20. Disposal of shares in 100% subsidiary that leases plant in partnership
45.25. Group members liable to pay outstanding tax
45.30. Reduction for certain plant acquired before 21.9.99
45.35. Limit on amount included for plant for which there is a CGT exemption
45.40. Meaning of plant and written down value

PART 2-15----NON-ASSESSABLE INCOME

Division 50--Exempt entities

Subdivision 50-A--Various exempt entities

50.1. Entities whose ordinary income and statutory income is exempt
50.5. Charity, education and science
50.10. Community service
50.15. Employees and employers
50.25. Government
50.30. Health
50.35. Mining
50.40. Primary and secondary resources, and tourism
50.45. Sports, culture and recreation
50.47. Special condition for all items
50.50. Special conditions for item 1.1
50.52. Special condition for item 1.1
50.55. Special conditions for items 1.3, 1.4, 6.1 and 6.2
50.65. Special conditions for item 1.6
50.70. Special conditions for items 1.7, 2.1, 9.1 and 9.2
50.72. Special condition for item 4.1
50.75. Certain distributions may be made overseas

Subdivision 50-B--Endorsing charitable entities as exempt from income tax

50.100. What this Subdivision is about
50.105. Endorsement by Commissioner
50.110. Entitlement to endorsement

Division 51--Exempt amounts

51.1. Amounts of ordinary income and statutory income that are exempt
51.5. Defence
51.10. Education and training
51.30. Welfare
51.32. Compensation payments for loss of tax exempt payments
51.33. Compensation payments for loss of pay and/or allowances as a Defence reservist
51.35. Payments to a full-time student at a school, college or university
51.40. Payments to a secondary student
51.42. Bonuses for early completion of an apprenticeship
51.43. Income collected or derived by copyright collecting society
51.45. Income collected or derived by resale royalty collecting society
51.50. Maintenance payments to a spouse or child
51.52. Income derived from eligible venture capital investments by ESVCLPs
51.54. Gain or profit from disposal of eligible venture capital investments
51.55. Gain or profit from disposal of venture capital equity
51.57. Interest on judgment debt relating to personal injury
51.60. Prime Minister's Prizes
51.100. Shipping
51.105. Shipping activities
51.110. Core shipping activities
51.115. Incidental shipping activities
51.120. Interest on unclaimed money and property
51.125. 2018 storms--relief payments

Division 52--Certain pensions, benefits and allowances are exempt from income tax

52.1. What this Division is about

Subdivision 52-A--Exempt payments under the Social Security Act 1991

52.5. What this Subdivision is about
52.10. How much of a social security payment is exempt?
52.15. Supplementary amounts of payments
52.20. Tax-free amount of an ordinary payment after the death of your partner
52.25. Tax-free amount of certain bereavement lump sum payments
52.30. Tax-free amount of certain other bereavement lump sum payments
52.35. Tax-free amount of a lump sum payment made because of the death of a person you are caring for
52.40. Provisions of the Social Security Act 1991 under which payments are made

Subdivision 52-B--Exempt payments under the Veterans' Entitlements Act 1986

52.60. What this Subdivision is about
52.65. How much of a veterans' affairs payment is exempt?
52.70. Supplementary amounts of payments
52.75. Provisions of the Veterans' Entitlements Act 1986 under which payments are made

Subdivision 52-C--Exempt payments made because of the Veterans' Entitlements

52.100. What this Subdivision is about
52.105. Supplementary amount of a payment made under the Repatriation Act 1920 is exempt
52.110. Other exempt payments

Subdivision 52-CA--Exempt payments under the Military Rehabilitation and Compensation Act 2004

52.112. What this Subdivision is about
52.114. How much of a payment under the Military Rehabilitation and Compensation Act is exempt?

Subdivision 52-CB--Exempt payments under the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force

52.117. Payments of travelling expenses and pharmaceutical supplement are exempt

Subdivision 52-CC--Exempt payments under the Treatment Benefits

52.120. Payments of travelling expenses and pharmaceutical supplement are exempt

Subdivision 52-E--Exempt payments under the ABSTUDY scheme

52.130. What this Subdivision is about
52.131. Payments under ABSTUDY scheme
52.132. Supplementary amount of payment
52.133. Tax-free amount of ordinary payment on death of partner if no bereavement payment payable
52.134. Tax-free amount if you receive a bereavement lump sum payment

Subdivision 52-F--Exemption of Commonwealth education or training payments

52.140. Supplementary amount of a Commonwealth education or training payment is exempt
52.145. Meaning of Commonwealth education or training payment

Subdivision 52-G--Exempt payments under the A New Tax System

52.150. Family assistance payments are exempt

Subdivision 52-H--Other exempt payments

52.160. Economic security strategy payments are exempt
52.162. ETR payments are exempt
52.165. Household stimulus payments are exempt
52.170. Outer Regional and Remote payments under the Helping Children with Autism package are exempt
52.172. Outer Regional and Remote payments under the Better Start for Children with Disability initiative are exempt
52.175. Continence aids payments are exempt
52.180. National Disability Insurance Scheme amounts are exempt
52.185. Acute support packages are exempt

Division 53--Various exempt payments

53.1. What this Division is about
53.10. Exemption of various types of payments
53.20. Exemption of similar Australian and United Kingdom veterans' payments
53.25. Coronavirus economic response payment
53.30. Territories Stolen Generations Redress Scheme payments are exempt

Division 54--Exemption for certain payments made under structured settlements and structured orders

54.1. What this Division is about

Subdivision 54-A--Definitions

54.5. Definitions
54.10. Meaning of structured settlement and structured order

Subdivision 54-B--Tax exemption for personal injury annuities

54.15. Personal injury annuity exemption for injured person
54.20. Lump sum compensation etc. would not have been assessable
54.25. Requirements of the annuity instrument
54.30. Requirements for payments of the annuity
54.35. Payments during the guarantee period on the death of the injured person
54.40. Requirement for minimum monthly level of support

Subdivision 54-C--Tax exemption for personal injury lump sums

54.45. Personal injury lump sum exemption for injured person
54.50. Lump sum compensation would not have been assessable
54.55. Requirements of the instrument under which the lump sum is paid
54.60. Requirements for payments of the lump sum

Subdivision 54-D--Miscellaneous

54.65. Exemption for certain payments to reversionary beneficiaries
54.70. Special provisions about trusts
54.75. Minister to arrange for review and report

Division 55--Payments that are not exempt from income tax

55.1. What this Division is about
55.5. Occupational superannuation payments
55.10. Education entry payments

Division 58--Capital allowances for depreciating assets previously owned by an exempt entity

58.1. What this Division is about

Subdivision 58-A--Application

58.5. Application of Division
58.10. When an asset is acquired in connection with the acquisition of a business

Subdivision 58-B--Calculating decline in value of privatised assets under Division 40

58.60. Purpose of rules in this Subdivision
58.65. Choice of method to work out cost of privatised asset
58.70. Application of Division 40
58.75. Meaning of notional written down value
58.80. Meaning of undeducted pre-existing audited book value
58.85. Pre-existing audited book value of depreciating asset
58.90. Method and effective life for transition entity

Division 59--Particular amounts of non-assessable non-exempt income

59.1. What this Division is about
59.10. Compensation under firearms surrender arrangements
59.15. Mining payments
59.20. Taxable amounts relating to franchise fees windfall tax
59.25. Taxable amounts relating to Commonwealth places windfall tax
59.30. Amounts you must repay
59.35. Amounts that would be mutual receipts but for prohibition on distributions to members or issue of MCIs
59.40. Issue of rights
59.50. Native title benefits
59.55. 2019-20 bushfires--payments for volunteer work with fire services
59.60. 2019-20 bushfires--disaster relief payments and non-cash benefits
59.65. Water infrastructure improvement payments
59.67. Meaning of SRWUIP program, SRWUIP payment, direct SRWUIP payment and indirect SRWUIP payment
59.70. List of SRWUIP programs
59.75. Commissioner to be kept informed
59.80. Amending assessments
59.85. 2019 floods--recovery grants for small businesses, primary producers and non-profit organisations
59.86. 2019 floods--on-farm grant program for primary producers
59.90. Cash flow boost
59.95. Coronavirus economic response payment
59.96. COVID-19 disaster payment
59.97. State and Territory grants to small business relating to the recovery from the coronavirus known as COVID-19
59.98. Commonwealth small business support payments relating to the coronavirus known as COVID-19
59.99. 2021 floods and storms--recovery grants
59.100. Refund of large-scale generation shortfall charge
59.105. Cyclone Seroja--recovery grants

PART 2-20----TAX OFFSETS

Division 61--Generally applicable tax offsets

Subdivision 61-A--Dependant

61.1. What this Subdivision is about
61.5. Object of this Subdivision
61.10. Who is entitled to the tax offset
61.15. Cases involving more than one spouse
61.20. Exceeding the income limit for family tax benefit (Part B)
61.25. Eligibility for family tax benefit (Part B) without shared care
61.30. Amount of the dependant (invalid and carer) tax offset
61.35. Families with shared care percentages
61.40. Reduced amounts of dependant (invalid and carer) tax offset
61.45. Reductions to take account of the other individual's income

Subdivision 61-D--Low Income tax offset

61.100. What this Subdivision is about
61.110. Entitlement to the Low Income tax offset
61.115. Amount of the Low Income tax offset

Subdivision 61-G--Private health insurance offset complementary to Part 2-2 of the Private Health Insurance Act 2007

61.200. What this Subdivision is about
61.205. Entitlement to the private health insurance tax offset
61.210. Amount of the private health insurance tax offset
61.215. Reallocation of the private health insurance tax offset between spouses

Subdivision 61-L--Tax offset for Medicare levy surcharge

61.575. What this Subdivision is about
61.580. Entitlement to a tax offset
61.585. The amount of a tax offset
61.590. Definition of MLS lump sums

Subdivision 61-N--Seafarer tax offset

61.695. What this Subdivision is about
61.700. Object of this Subdivision
61.705. Who is entitled to the seafarer tax offset
61.710. Amount of the seafarer tax offset

Subdivision 61-P--ESVCLP tax offset

61.750. What this Subdivision is about
61.755. Object of this Subdivision
61.760. Who is entitled to the ESVCLP tax offset
61.765. Amount of the ESVCLP tax offset--general case
61.770. Amount of the ESVCLP tax offset--members of trusts or partnerships
61.775. Amount of the ESVCLP tax offset--trustees

Division 63--Common rules for tax offsets

63.1. What this Division is about
63.10. Priority rules

Division 65--Tax offset carry forward rules

65.10. What this Division is about
65.30. Amount carried forward
65.35. How to apply carried forward tax offsets
65.40. When a company cannot apply a tax offset
65.50. Effect of bankruptcy
65.55. Deduction for amounts paid for debts incurred before bankruptcy

Division 67--Refundable tax offset rules

67.10. What this Division is about
67.20. Which tax offsets this Division applies to
67.23. Refundable tax offsets
67.25. Refundable tax offsets--franked distributions
67.30. Refundable tax offsets--R&D

CHAPTER 2--Liability rules of general application

PART 2-25----TRADING STOCK

Division 70--Trading stock

70.1. What this Division is about
70.5. The 3 key features of tax accounting for trading stock

Subdivision 70-A--What is trading stock

70.10. Meaning of trading stock
70.12. Registered emissions units

Subdivision 70-B--Acquiring trading stock

70.15. In which income year do you deduct an outgoing for trading stock?
70.20. Non-arm's length transactions
70.25. Cost of trading stock is not a capital outgoing
70.30. Starting to hold as trading stock an item you already own

Subdivision 70-C--Accounting for trading stock you hold at the start or end of the income year

70.35. You include the value of your trading stock in working out your assessable income and deductions
70.40. Value of trading stock at start of income year
70.45. Value of trading stock at end of income year
70.50. Valuation if trading stock obsolete etc.
70.55. Working out the cost of natural increase of live stock
70.60. Valuation of horse breeding stock
70.65. Working out the horse opening value and the horse reduction amount

Subdivision 70-D--Assessable income arising from disposals of trading stock and certain other assets

70.75. What this Subdivision is about
70.80. Why the rules in this Subdivision are necessary
70.85. Application of this Subdivision to certain other assets
70.90. Assessable income on disposal of trading stock outside the ordinary course of business
70.95. Purchase price is taken to be market value
70.100. Notional disposal when you stop holding an item as trading stock
70.105. Death of owner
70.110. You stop holding an item as trading stock but still own it
70.115. Compensation for lost trading stock

Subdivision 70-E--Miscellaneous

70.120. Deducting capital costs of acquiring trees

PART 2-40----RULES AFFECTING EMPLOYEES AND OTHER TAXPAYERS RECEIVING PAYG WITHHOLDING PAYMENTS

Division 80--General rules

80.1. What this Division is about
80.5. Holding of an office
80.10. Application to the termination of employment
80.15. Transfer of property
80.20. Payments for your benefit or at your direction or request

Division 82--Employment termination payments

82.1. What this Division is about

Subdivision 82-A--Employment termination payments

82.5. What this Subdivision is about
82.10. Taxation of life benefit termination payments

Subdivision 82-B--Employment termination payments

82.60. What this Subdivision is about
82.65. Death benefits for dependants
82.70. Death benefits for non-dependants
82.75. Death benefits paid to trustee of deceased estate

Subdivision 82-C--Key concepts

82.125. What this Subdivision is about
82.130. What is an employment termination payment?
82.135. Payments that are not employment termination payments
82.140. Tax free component of an employment termination payment
82.145. Taxable component of an employment termination payment
82.150. What is an invalidity segment of an employment termination payment?
82.155. What is a pre-July 83 segment of an employment termination payment?
82.160. What is the ETP cap amount?

Division 83--Other payments on termination of employment

83.1. What this Division is about

Subdivision 83-A--Unused annual leave payments

83.5. What this Subdivision is about
83.10. Unused annual leave payment is assessable
83.15. Entitlement to tax offset

Subdivision 83-B--Unused long service leave payments

83.65. What this Subdivision is about
83.70. Application--long service leave
83.75. Meaning of unused long service leave payment
83.80. Taxation of unused long service leave payments
83.85. Entitlement to tax offset
83.90. Meaning of pre-16/8/78 period, pre-18/8/93 period, post-17/8/93 period and long service leave employment period
83.95. How to work out amount of payment attributable to each period
83.100. How to work out unused days of long service leave for each period
83.105. How to work out long service leave accrued in each period
83.110. Leave accrued in pre-16/8/78, pre-18/8/93 and post-17/8/93 periods--employment full-time and part-time
83.115. Working out used days of long service leave if leave taken at less than full pay

Subdivision 83-C--Genuine redundancy payments and early retirement scheme payments

83.165. What this Subdivision is about
83.170. Tax-free treatment of genuine redundancy payments and early retirement scheme payments
83.175. What is a genuine redundancy payment?
83.180. What is an early retirement scheme payment?

Subdivision 83-D--Foreign termination payments

83.230. What this Subdivision is about
83.235. Termination payments tax free--foreign resident period
83.240. Termination payments tax free--Australian resident period

Subdivision 83-E--Other payments

83.290. What this Subdivision is about
83.295. Termination payments made more than 12 months after termination etc.

Division 83A--Employee share schemes

83A.1. What this Division is about

Subdivision 83A-A--Objects of Division and key concepts

83A.5. Objects of Division
83A.10. Meaning of ESS interest and employee share scheme

Subdivision 83A-B--Immediate inclusion of discount in assessable income

83A.15. What this Subdivision is about
83A.20. Application of Subdivision
83A.25. Discount to be included in assessable income
83A.30. Amount for which discounted ESS interest acquired
83A.33. Reducing amounts included in assessable income--start ups
83A.35. Reducing amounts included in assessable income--other cases
83A.45. Further conditions for reducing amounts included in assessable income

Subdivision 83A-C--Deferred inclusion of gain in assessable income

83A.100.What this Subdivision is about
83A.105.Application of Subdivision
83A.110.Amount to be included in assessable income
83A.115.ESS deferred taxing point--shares
83A.120.ESS deferred taxing point--rights to acquire shares
83A.125.Tax treatment of ESS interests held after ESS deferred taxing points
83A.130.Takeovers and restructures

Subdivision 83A-D--Deduction for employer

83A.200.What this Subdivision is about
83A.205.Deduction for employer
83A.210.Timing of general deductions

Subdivision 83A-E--Miscellaneous

83A.305.Acquisition by associates
83A.310.Forfeiture etc. of ESS interest
83A.315.Market value of ESS interest
83A.320.Interests in a trust
83A.325.Application of Division to relationships similar to employment
83A.330.Application of Division to ceasing employment
83A.335.Application of Division to stapled securities
83A.340.Application of Division to indeterminate rights

PART 2-42----PERSONAL SERVICES INCOME

Division 84--Introduction

84.1. What this Part is about
84.5. Meaning of personal services income
84.10. This Part does not imply that individuals are employees

Division 85--Deductions relating to personal services income

85.1. What this Division is about
85.5. Object of this Division
85.10. Deductions for non-employees relating to personal services income
85.15. Deductions for rent, mortgage interest, rates and land tax
85.20. Deductions for payments to associates etc.
85.25. Deductions for superannuation for associates
85.30. Exception: personal services businesses
85.35. Exception: employees, office holders and religious practitioners
85.40. Application of Subdivision 900-B to individuals who are not employees

Division 86--Alienation of personal services income

86.1. What this Division is about
86.5. A simple description of what this Division does

Subdivision 86-A--General

86.10. Object of this Division
86.15. Effect of obtaining personal services income through a personal services entity
86.20. Offsetting the personal services entity's deductions against personal services income
86.25. Apportionment of entity maintenance deductions among several individuals
86.27. Deduction for net personal services income loss
86.30. Assessable income etc. of the personal services entity
86.35. Later payments of, or entitlements to, personal services income to be disregarded for income tax purposes
86.40. Salary payments shortly after an income year

Subdivision 86-B--Entitlement to deductions

86.60. General rule for deduction entitlements of personal services entities
86.65. Entity maintenance deductions
86.70. Car expenses
86.75. Superannuation
86.80. Salary or wages promptly paid
86.85. Deduction entitlements of personal services entities for amounts included in an individual's assessable income
86.87. Personal services entity cannot deduct net personal services income loss
86.90. Application of Divisions 28 and 900 to personal services entities

Division 87--Personal services businesses

87.1. What this Division is about
87.5. Diagram showing the operation of this Division

Subdivision 87-A--General

87.10. Object of this Division
87.15. What is a personal services business?
87.18. The results test for a personal services business
87.20. The unrelated clients test for a personal services business
87.25. The employment test for a personal services business
87.30. The business premises test for a personal services business
87.35. Personal services income from Australian government agencies
87.40. Application of this Division to certain agents

Subdivision 87-B--Personal services business determinations

87.60. Personal services business determinations for individuals
87.65. Personal services business determinations for personal services entities
87.70. Applying etc. for personal services business determinations
87.75. When personal services business determinations have effect
87.80. Revoking personal services business determinations
87.85. Review of decisions

CHAPTER 3--Specialist liability rules

PART 3-1--CAPITAL GAINS AND LOSSES: GENERAL TOPICS

Division 100--A Guide to capital gains and losses

100.1. What this Division is about
100.5. Effect of this Division
100.10. Fundamentals of CGT
100.15. Overview of Steps 1 and 2
100.20. What events attract CGT?
100.25. What are CGT assets?
100.30. Does an exception or exemption apply?
100.33. Can there be a roll-over?
100.35. What is a capital gain or loss?
100.40. What factors come into calculating a capital gain or loss?
100.45. How to calculate the capital gain or loss for most CGT events
100.50. How to work out your net capital gain or loss
100.55. How do you comply with CGT?
100.60. Why keep records?
100.65. What records?
100.70. How long you need to keep records

Division 102--Assessable income includes net capital gain

102.1. What this Division is about
102.3. Concessions in working out your net capital gain
102.5. Assessable income includes net capital gain
102.10. How to work out your net capital loss
102.15. How to apply net capital losses
102.20. Ways you can make a capital gain or a capital loss
102.22. Amounts of capital gains and losses
102.23. CGT event still happens even if gain or loss disregarded
102.25. Order of application of CGT events
102.30. Exceptions and modifications

Division 103--General rules

103.1. What this Division is about
103.5. Giving property as part of a transaction
103.10. Entitlement to receive money or property
103.15. Requirement to pay money or give property
103.25. Choices
103.30. Reduction of cost base etc. by net input tax credits

Division 104--CGT events

104.1. What this Division is about
104.5. Summary of the CGT events

Subdivision 104-A--Disposals

104.10. Disposal of a CGT asset: CGT event A1

Subdivision 104-B--Use and enjoyment before title passes

104.15. Use and enjoyment before title passes: CGT event B1

Subdivision 104-C--End of a CGT asset

104.20. Loss or destruction of a CGT asset: CGT event C1
104.25. Cancellation, surrender and similar endings: CGT event C2
104.30. End of option to acquire shares etc.: CGT event C3

Subdivision 104-D--Bringing into existence a CGT asset

104.35. Creating contractual or other rights: CGT event D1
104.40. Granting an option: CGT event D2
104.45. Granting a right to income from mining: CGT event D3
104.47. Conservation covenants: CGT event D4

Subdivision 104-E--Trusts

104.55. Creating a trust over a CGT asset: CGT event E1
104.60. Transferring a CGT asset to a trust: CGT event E2
104.65. Converting a trust to a unit trust: CGT event E3
104.70. Capital payment for trust interest: CGT event E4
104.71. Adjustment of non-assessable part
104.72. Reducing your capital gain under CGT event E4 if you are a trustee
104.75. Beneficiary becoming entitled to a trust asset: CGT event E5
104.80. Disposal to beneficiary to end income right: CGT event E6
104.85. Disposal to beneficiary to end capital interest: CGT event E7
104.90. Disposal by beneficiary of capital interest: CGT event E8
104.95. Making a capital gain
104.100.Making a capital loss
104.105.Creating a trust over future property: CGT event E9
104.107A.AMIT--cost base reduction exceeds cost base: CGT event E10
104.107B.Annual cost base adjustment for member's unit or interest in AMIT
104.107C.AMIT cost base net amount
104.107D.AMIT cost base reduction amount
104.107E.AMIT cost base increase amount
104.107F.Receipt of money etc. increasing AMIT cost base reduction amount not to be treated as income
104.107G.Effect of AMIT cost base net amount on cost of AMIT membership interest or unit that is a revenue asset--adjustment of cost of asset
104.107H.Effect of AMIT cost base net amount on cost of AMIT membership interest or unit that is a revenue asset--amount included in assessable income

Subdivision 104-F--Leases

104.110.Granting a lease: CGT event F1
104.115.Granting a long-term lease: CGT event F2
104.120.Lessor pays lessee to get lease changed: CGT event F3
104.125.Lessee receives payment for changing lease: CGT event F4
104.130.Lessor receives payment for changing lease: CGT event F5

Subdivision 104-G--Shares

104.135.Capital payment for shares: CGT event G1
104.145.Liquidator or administrator declares shares or financial instruments worthless: CGT event G3

Subdivision 104-H--Special capital receipts

104.150.Forfeiture of deposit: CGT event H1
104.155.Receipt for event relating to a CGT asset: CGT event H2

Subdivision 104-I--Australian residency ends

104.160.Individual or company stops being an Australian resident: CGT event I1
104.165.Exception for individuals
104.170.Trust stops being a resident trust: CGT event I2

Subdivision 104-J--CGT events relating to roll-overs

104.175.Company ceasing to be member of wholly-owned group after roll-over: CGT event J1
104.180.Sub-group break-up
104.182.Consolidated group break-up
104.185.Change in relation to replacement asset or improved asset after a roll-over under Subdivision 152-E: CGT event J2
104.190.Replacement asset period
104.195.Trust failing to cease to exist after roll-over under Subdivision 124-N: CGT event J4
104.197.Failure to acquire replacement asset and to incur fourth element expenditure after a roll-over under Subdivision 152-E: CGT event J5
104.198.Cost of acquisition of replacement asset or amount of fourth element expenditure, or both, not sufficient to cover disregarded capital gain: CGT event J6

Subdivision 104-K--Other CGT events

104.205.Incoming international transfer of emissions unit: CGT event K1
104.210.Bankrupt pays amount in relation to debt: CGT event K2
104.215.Asset passing to tax-advantaged entity: CGT event K3
104.220.CGT asset starts being trading stock: CGT event K4
104.225.Special collectable losses: CGT event K5
104.230.Pre-CGT shares or trust interest: CGT event K6
104.235.Balancing adjustment events for depreciating assets and certain assets used for R&D: CGT event K7
104.240.Working out capital gain or loss for CGT event K7: general case
104.245.Working out capital gain or loss for CGT event K7: pooled assets
104.250.Direct value shifts: CGT event K8
104.255.Carried interests: CGT event K9
104.260.Certain short-term forex realisation gains: CGT event K10
104.265.Certain short-term forex realisation losses: CGT event K11
104.270.Foreign hybrids: CGT event K12

Subdivision 104-L--Consolidated groups and MEC groups

104.500.Loss of pre-CGT status of membership interests in entity becoming subsidiary member: CGT event L1
104.505.Where pre-formation intra-group roll-over reduction results in negative allocable cost amount: CGT event L2
104.510.Where tax cost setting amounts for retained cost base assets exceeds joining allocable cost amount: CGT event L3
104.515.Where no reset cost base assets and excess of net allocable cost amount on joining: CGT event L4
104.520.Where amount remaining after step 4 of leaving allocable cost amount is negative: CGT event L5
104.525.Error in calculation of tax cost setting amount for joining entity's assets: CGT event L6
104.535.Where reduction in tax cost setting amounts for reset cost base assets cannot be allocated: CGT event L8

Division 106--Entity making the gain or loss

106.1. What this Division is about

Subdivision 106-A--Partnerships

106.5. Partnerships

Subdivision 106-B--Bankruptcy and liquidation

106.30. Effect of bankruptcy
106.35. Effect of liquidation

Subdivision 106-C--Absolutely entitled beneficiaries

106.50. Absolutely entitled beneficiaries

Subdivision 106-D--Securities, charges and encumbrances

106.60. Securities, charges and encumbrances

Division 108--CGT assets

108.1. What this Division is about

Subdivision 108-A--What a CGT asset is

108.5. CGT assets
108.7. Interest in CGT assets as joint tenants

Subdivision 108-B--Collectables

108.10. Losses from collectables to be offset only against gains from collectables
108.15. Sets of collectables
108.17. Cost base of a collectable

Subdivision 108-C--Personal use assets

108.20. Losses from personal use assets must be disregarded
108.25. Sets of personal use assets
108.30. Cost base of a personal use asset

Subdivision 108-D--Separate CGT assets

108.50. What this Subdivision is about
108.55. When is a building a separate asset from land?
108.60. Depreciating asset that is part of a building is a separate asset
108.65. Land adjacent to land acquired before 20 September 1985
108.70. When is a capital improvement a separate asset?
108.75. Capital improvements to CGT assets for which a roll-over may be available
108.80. Deciding if capital improvements are related to each other
108.85. Meaning of improvement threshold

Division 109--Acquisition of CGT assets

109.1. What this Division is about

Subdivision 109-A--Operative rules

109.5. General acquisition rules
109.10. When you acquire a CGT asset without a CGT event

Subdivision 109-B--Signposts to other acquisition rules

109.50. Effect of this Subdivision
109.55. Other acquisition rules
109.60. Acquisition rules outside this Part and Part 3-3

Division 110--Cost base and reduced cost base

110.1. What this Division is about
110.5. Modifications to general rules
110.10. Rules about cost base not relevant for some CGT events

Subdivision 110-A--Cost base

110.25. General rules about cost base
110.35. Incidental costs
110.36. Indexation
110.37. Expenditure forming part of cost base or element
110.38. Exclusions
110.40. Assets acquired before 7.30 pm on 13 May 1997
110.43. Partnership interests acquired before 7.30 pm on 13 May 1997
110.45. Assets acquired after 7.30 pm on 13 May 1997
110.50. Partnership interests acquired after 7.30 pm on 13 May 1997
110.53. Exceptions to application of sections 110-45 and 110-50
110.54. Debt deductions disallowed by thin capitalisation rules

Subdivision 110-B--Reduced cost base

110.55. General rules about reduced cost base
110.60. Reduced cost base for partnership assets

Division 112--Modifications to cost base and reduced cost base

112.1. What this Division is about
112.5. Discussion of modifications

Subdivision 112-A--General modifications

112.15. General rule for replacement modifications
112.20. Market value substitution rule
112.25. Split, changed or merged assets
112.30. Apportionment rules
112.35. Assumption of liability rule
112.36. Acquisitions of assets involving look-through earnout rights
112.37. Put options

Subdivision 112-B--Finding tables for special rules

112.40. Effect of this Subdivision
112.45. CGT events
112.46. Annual cost base adjustment for member's unit or interest in AMIT
112.48. Gifts acquired by associates
112.50. Main residence
112.53. Scrip for scrip roll-over
112.53AA.Statutory licences
112.53AB.Change of incorporation
112.53A.MDO roll-over
112.53B.Exchange of stapled ownership interests for units in a unit trust
112.53C.Water entitlement roll-overs
112.54. Demergers
112.54A.Transfer of assets between certain trusts
112.55. Effect of you dying
112.60. Bonus shares or units
112.65. Rights
112.70. Convertible interests
112.77. Exchangeable interests
112.78. Exploration investments
112.80. Leases
112.85. Options
112.87. Residency
112.90. An asset stops being a pre-CGT asset
112.92. Demutualisation of certain entities
112.95. Transfer of tax losses and net capital losses within wholly-owned groups of companies
112.97. Modifications outside this Part and Part 3-3

Subdivision 112-C--Replacement-asset roll-overs

112.100.Effect of this Subdivision
112.105.What is a replacement-asset roll-over?
112.110.How is the cost base of the replacement asset modified?
112.115.Table of replacement-asset roll-overs

Subdivision 112-D--Same-asset roll-overs

112.135.Effect of this Subdivision
112.140.What is a same-asset roll-over?
112.145.How is the cost base of the asset modified?
112.150.Table of same-asset roll-overs

Division 114--Indexation of cost base

114.1. Indexing elements of cost base
114.5. When indexation relevant
114.10. Requirement for 12 months ownership
114.15. Cost base modifications
114.20. When expenditure is incurred for roll-overs

Division 115--Discount capital gains and trusts' net capital gains

115.1. What this Division is about

Subdivision 115-A--Discount capital gains

115.5. What is a discount capital gain?
115.10. Who can make a discount capital gain?
115.15. Discount capital gain must be made after 21 September 1999
115.20. Discount capital gain must not have indexed cost base
115.25. Discount capital gain must be on asset acquired at least 12 months before
115.30. Special rules about time of acquisition
115.32. Special rule about time of acquisition for certain replacement-asset roll-overs
115.34. Further special rule about time of acquisition for certain replacement-asset roll-overs
115.40. Capital gain resulting from agreement made within a year of acquisition
115.45. Capital gain from equity in an entity with newly acquired assets
115.50. Discount capital gain from equity in certain entities
115.55. Capital gains involving money received from demutualisation of friendly society health or life insurer

Subdivision 115-B--Discount percentage

115.100.What is the discount percentage for a discount capital gain
115.105.Foreign or temporary residents--individuals with direct gains
115.110.Foreign or temporary residents--individuals with trust gains
115.115.Foreign or temporary residents--percentage for individuals
115.120.Foreign or temporary residents--trusts with certain gains
115.125.Investors disposing of property used for affordable housing

Subdivision 115-C--Rules about trusts with net capital gains

115.200.What this Division is about
115.210.When this Subdivision applies
115.215.Assessing presently entitled beneficiaries
115.220.Assessing trustees under section 98 of the Income Tax Assessment Act 1936
115.222.Assessing trustees under section 99 or 99A of the Income Tax Assessment Act 1936
115.225.Attributable gain
115.227.Share of a capital gain
115.228.Specifically entitled to an amount of a capital gain
115.230.Choice for resident trustee to be specifically entitled to capital gain

Subdivision 115-D--Tax relief for shareholders in listed investment companies

115.275.What this Subdivision is about
115.280.Deduction for certain dividends
115.285.Meaning of LIC capital gain
115.290.Meaning of listed investment company
115.295.Maintaining records

Division 116--Capital proceeds

116.1. What this Division is about
116.5. General rules
116.10. Modifications to general rules
116.20. General rules about capital proceeds
116.25. Table of modifications to the general rules
116.30. Market value substitution rule: modification 1
116.35. Companies and trusts that are not widely held
116.40. Apportionment rule: modification 2
116.45. Non-receipt rule: modification 3
116.50. Repaid rule: modification 4
116.55. Assumption of liability rule: modification 5
116.60. Misappropriation rule: modification 6
116.65. Disposal etc. of a CGT asset the subject of an option
116.70. Option requiring both acquisition and disposal etc.
116.75. Special rule for CGT event happening to a lease
116.80. Special rule if CGT asset is shares or an interest in a trust
116.85. Section 47A of 1936 Act applying to rolled-over asset
116.95. Company changes residence from an unlisted country
116.100.Gifts of property
116.105.Conservation covenants
116.110.Roll-overs for merging superannuation funds
116.115.Farm-in farm-out arrangements
116.120.Disposals of assets involving look-through earnout rights

Division 118--Exemptions

118.1. What this Division is about

Subdivision 118-A--General exemptions

118.5. Cars, motor cycles and valour decorations
118.10. Collectables and personal use assets
118.12. Assets used to produce exempt income etc.
118.13. Shares in a PDF
118.15. Registered emissions units
118.20. Reducing capital gains if amount otherwise assessable
118.21. Carried interests
118.22. Superannuation lump sums and employment termination payments
118.24. Depreciating assets
118.25. Trading stock
118.27. Division 230 financial arrangements and financial arrangements to which Subdivision 250-E applies
118.30. Film copyright
118.35. R&D
118.37. Compensation, damages etc.
118.40. Expiry of a lease
118.42. Transfer of stratum units
118.45. Sale of rights to mine
118.55. Foreign currency hedging gains and losses
118.60. Certain gifts
118.65. Later distributions of personal services income
118.70. Transactions by exempt entities
118.75. Marriage or relationship breakdown settlements
118.77. Native title and rights to native title benefits
118.80. Reduction of boat capital gain
118.85. Special disability trusts

Subdivision 118-B--Main residence

118.100.What this Subdivision is about
118.105.Map of this Subdivision
118.110.Basic case
118.115.Meaning of dwelling
118.120.Extension to adjacent land etc.
118.125.Meaning of ownership period
118.130.Meaning of ownership interest in land or a dwelling
118.135.Moving into a dwelling
118.140.Changing main residences
118.145.Absences
118.147.Absence from dwelling replacing main residence that was compulsorily acquired, destroyed etc.
118.150.If you build, repair or renovate a dwelling
118.155.Where individual referred to in section 118-150 dies
118.160.Destruction of dwelling and sale of land
118.165.Separate CGT event for adjacent land or other structures
118.170.Spouse having different main residence
118.175.Dependent child having different main residence
118.178.Previous roll-over under Subdivision 126-A
118.180.Acquisition of dwelling from company or trust on marriage or relationship breakdown--roll-over provision applying
118.185.Partial exemption where dwelling was your main residence during part only of ownership period
118.190.Use of dwelling for producing assessable income
118.192.Special rule for first use to produce income
118.195.Dwelling acquired from a deceased estate
118.197.Special rule for surviving joint tenant
118.200.Partial exemption for deceased estate dwellings
118.205.Adjustment if dwelling inherited from deceased individual
118.210.Trustee acquiring dwelling under will
118.215.What the following provisions are about
118.218.Exemption available to trustee--main case
118.220.Exemption available to trustee--after the principal beneficiary's death
118.222.Exemption available to other beneficiary who acquires the CGT asset after the principal beneficiary's death
118.225.Amount of exemption available after the principal beneficiary's death--general
118.227.Amount of exemption available after the principal beneficiary's death--cost base and reduced cost base
118.230.Application of CGT events E5 and E7 in relation to main residence exemption and special disability trusts
118.240.What the following provisions are about
118.245.CGT events happening only to adjacent land
118.250.Compulsory acquisitions of adjacent land
118.255.Maximum exempt area
118.260.Partial exemption rules
118.265. Extension to adjacent structures

Subdivision 118-D--Insurance and superannuation

118.300.Insurance policies
118.305.Superannuation
118.310.RSA's
118.313.Superannuation agreements under the Family Law Act
118.315.Segregated exempt assets of life insurance companies
118.320.Segregated current pension assets of a complying superannuation entity

Subdivision 118-E--Units in pooled superannuation trusts

118.350.Units in pooled superannuation trusts

Subdivision 118-F--Venture capital investment

118.400.What this Subdivision is about
118.405.Exemption for certain foreign venture capital investments through venture capital limited partnerships
118.407.Exemption for certain venture capital investments through early stage venture capital limited partnerships
118.408.Partial exemption for some capital gains otherwise fully exempt under section 118-407
118.410.Exemption for certain foreign venture capital investments through Australian venture capital funds of funds
118.415.Exemption for certain venture capital investments by foreign residents
118.420.Meaning of eligible venture capital partner etc.
118.425.Meaning of eligible venture capital investment--investments in companies
118.427.Meaning of eligible venture capital investment--investments in unit trusts
118.428.Additional investment requirements for ESVCLPs
118.430.Meaning of at risk
118.432.Findings of substantially novel applications of technology
118.435.Special rule relating to investment in foreign resident holding companies
118.440.Meaning of permitted entity value
118.445.Meaning of committed capital
118.450.Values of assets and investments of entities without auditors
118.455.Impact Assessment of this Subdivision

Subdivision 118-G--Venture capital

118.500.What this Subdivision is about
118.505.Exemption for certain foreign venture capital
118.510.Meaning of resident investment vehicle
118.515.Meaning of venture capital entity
118.520.Meaning of superannuation fund for foreign residents
118.525.Meaning of venture capital equity

Subdivision 118-H--Demutualisation of Tower Corporation

118.550.Demutualisation of Tower Corporation

Subdivision 118-I--Look-through earnout rights

118.560.Object
118.565.Look-through earnout rights
118.570.Extra ways a CGT asset can be an active asset
118.575.Creating and ending look-through earnout rights
118.580.Temporarily disregard capital losses affected by look-through earnout rights

Division 121--Record keeping

121.10. What this Division is about
121.20. What records you must keep
121.25. How long you must retain the records
121.30. Exceptions
121.35. Asset register entries

CHAPTER 3--Specialist liability rules

PART 3-3--CAPITAL GAINS AND LOSSES: SPECIAL TOPICS

Division 122--Roll-over for the disposal of assets to, or the creation of assets in, a wholly-owned company

122.1. What this Division is about

Subdivision 122-A--Disposal or creation of assets by an individual or trustee to a wholly-owned company

122.5. What this Subdivision is about
122.15. Disposal or creation of assets--wholly-owned company
122.20. What you receive for the trigger event
122.25. Other requirements to be satisfied
122.35. What if the company undertakes to discharge a liability (disposal case)
122.37. Rules for working out what a liability in respect of an asset is
122.40. Disposal of a CGT asset
122.45. Disposal of all the assets of a business
122.50. All assets acquired on or after 20 September 1985
122.55. All assets acquired before 20 September 1985
122.60. Assets acquired before and after 20 September 1985
122.65. Creation of asset
122.70. Consequences for the company (disposal case)
122.75. Consequences for the company (creation case)

Subdivision 122-B--Disposal or creation of assets by partners to a wholly-owned company

122.120.What this Subdivision is about
122.125.Disposal or creation of assets--wholly-owned company
122.130.What the partners receive for the trigger event
122.135.Other requirements to be satisfied
122.140.What if the company undertakes to discharge a liability (disposal case)
122.145.Rules for working out what a liability in respect of an interest in an asset is
122.150.Capital gain or loss disregarded
122.155.Disposal of post-CGT or pre-CGT interests
122.160.Disposal of both post-CGT and pre-CGT interests
122.170.Capital gain or loss disregarded
122.175.Other consequences
122.180.All interests acquired on or after 20 September 1985
122.185.All interests acquired before 20 September 1985
122.190.Interests acquired before and after 20 September 1985
122.195.Creation of asset
122.200.Consequences for the company (disposal case)
122.205.Consequences for the company (creation case)

Division 124--Replacement-asset roll-overs

124.1. What this Division is about
124.5. How to find your way around this Division

Subdivision 124-A--General rules

124.10. Your ownership of one CGT asset ends
124.15. Your ownership of more than one CGT asset ends
124.20. Share and interest sale facilities

Subdivision 124-B--Asset compulsorily acquired, lost or destroyed

124.70. Events giving rise to a roll-over
124.75. Other requirements if you receive money
124.80. Other requirements if you receive an asset
124.85. Consequences for receiving money
124.90. Consequences for receiving an asset
124.95. You receive both money and an asset

Subdivision 124-C--Statutory licences

124.140.New statutory licences
124.145.Rollover consequences--capital gain or loss disregarded
124.150.Rollover consequences--partial roll-over
124.155.Roll-over consequences--all original licences were post-CGT
124.160.Roll-over consequences--all original licences were pre-CGT
124.165.Roll-over consequences--some original licences were pre-CGT, others were post-CGT

Subdivision 124-D--Strata title conversion

124.190.Strata title conversion

Subdivision 124-E--Exchange of shares or units

124.240.Exchange of shares in the same company
124.245.Exchange of units in the same unit trust

Subdivision 124-F--Exchange of rights or options

124.295.Exchange of rights or option to acquire shares in a company
124.300.Exchange of rights or option to acquire units in a unit trust

Subdivision 124-I--Change of incorporation

124.510.What this Subdivision is about
124.515.Object of this Subdivision
124.520.Change of incorporation without change of entity
124.525.Old corporation wound up
124.530.Shares in company replacing pre-CGT and post-CGT mix of interest and rights in body
124.535.Rights as member of Indigenous corporation replacing pre-CGT and post-CGT mix of interest and rights in body

Subdivision 124-J--Crown leases

124.570.What this Subdivision is about
124.575.Extension or renewal of Crown lease
124.580.Meaning of Crown lease
124.585.Original right differs in area from new right
124.590.Part of original right excised
124.595.Treating parts of new right as separate assets
124.600.What is the roll-over?
124.605.Change of lessor

Subdivision 124-K--Depreciating assets

124.655.Roll-over for depreciating assets
124.660.Right granted to associate

Subdivision 124-L--Prospecting and mining entitlements

124.700.What this Subdivision is about
124.705.Extension or renewal of prospecting or mining entitlement
124.710.Meaning of prospecting entitlement and mining entitlement
124.715.Original entitlement differs in area from new entitlement
124.720.Part of original entitlement excised
124.725.Treating parts of new entitlement as separate assets
124.730.What is the roll-over?

Subdivision 124-M--Scrip for scrip roll-over

124.775.What this Subdivision is about
124.780.Replacement of shares
124.781.Replacement of trust interests
124.782.Transfer or allocation of cost base of shares acquired by acquiring entity etc.
124.783.Meaning of significant stakeholder, common stakeholder, significant stake and common stake
124.783A.Rights that affect stakes
124.784.Cost base of equity or debt given within acquiring group
124.784A.When arrangement is a restructure
124.784B.What is the cost base and reduced cost base when arrangement is a restructure?
124.784C.Cost base of equity or debt given within acquiring group
124.785.What is the roll-over?
124.790.Partial roll-over
124.795.Exceptions
124.800.Interest received for pre-CGT interest
124.810.Certain companies and trusts not regarded as having 300 members or beneficiaries

Subdivision 124-N--Disposal of assets by a trust to a company

124.850.What this Subdivision is about
124.855.What this Subdivision deals with
124.860.Requirements for roll-over
124.865.Entities both choose the roll-over
124.870.Roll-over for owner of units or interests in a trust
124.875.Effect on the transferor and transferee

Subdivision 124-P--Exchange of a membership interest in an MDO for a membership interest in another MDO

124.975.What this Subdivision is about
124.980.Exchange of membership interests in an MDO
124.985.What the roll-over is for post-CGT interests
124.990.Partial roll-over
124.995.Pre-CGT interests

Subdivision 124-Q--Exchange of stapled ownership interests for ownership interests in a unit trust

124.1040.What this Subdivision is about
124.1045.Exchange of stapled securities
124.1050.Conditions
124.1055.Consequences of the roll-over for exchanging members
124.1060.Consequences of the roll-over for interposed trust

Subdivision 124-R--Water entitlements

124.1100.What this Subdivision is about
124.1105.Replacement water entitlements roll-over
124.1110.Roll-over consequences--capital gain or loss disregarded
124.1115.Roll-over consequences--partial roll-over
124.1120.Roll-over consequences--all original entitlements post-CGT
124.1125.Roll-over consequences--all original entitlements pre-CGT
124.1130.Roll-over consequences--some original entitlements pre-CGT, others post-CGT
124.1135.Reduction in water entitlements roll-over
124.1140.Roll-over consequences--capital gain or loss disregarded
124.1145.Roll-over consequences--all original entitlements post-CGT
124.1150.Roll-over consequences--some original entitlements pre-CGT, others post-CGT
124.1155.Roll-over for variation to CGT asset
124.1160.Roll-over consequences
124.1165.Roll-over consequences--partial roll-over

Subdivision 124-S--Interest realignment arrangements

124.1220.What this Subdivision is about
124.1225.Disposals of interests under interest realignment arrangements
124.1230.Roll-over consequences--partial roll-over
124.1235.Roll-over consequences--all original interests were post-CGT and pre-UCA
124.1240.Roll-over consequences--all original interests were pre-CGT
124.1245.Roll-over consequences--original interests were of mixed CGT status, all were pre-UCA
124.1250.Roll-over consequences--some original interests were pre-UCA

Division 125--Demerger relief

125.1. What this Division is about

Subdivision 125-A--Object of this Division

125.5. Object of this Division

Subdivision 125-B--Consequences for owners of interests

125.50. Guide to Subdivision 125-B
125.55. When a roll-over is available for a demerger
125.60. Meaning of ownership interest and related terms
125.65. Meanings of demerger group, head entity and demerger subsidiary
125.70. Meanings of demerger, demerged entity and demerging entity
125.75. Exceptions to subsection 125-70(2)
125.80. What is the roll-over?
125.85. Cost base adjustments where CGT event happens but no roll-over chosen
125.90. Cost base adjustments where no CGT event
125.95. No other cost base adjustment after demerger
125.100.No further demerger relief in some cases

Subdivision 125-C--Consequences for members of demerger group

125.150.Guide to Subdivision 125-C
125.155.Certain capital gains or losses disregarded for demerging entity
125.160.No CGT event J1
125.165.Adjusted capital loss for value shift under a demerger
125.170.Reduced cost base reduction if demerger asset subject to roll-over

Subdivision 125-D--Public trading trusts

125.225.Guide to Subdivision 125-D
125.230.Application of Division to public trading trusts

Subdivision 125-E--Miscellaneous

125.235.Share and interest sale facilities

Division 126--Same-asset roll-overs

126.1. What this Division is about

Subdivision 126-A--Marriage or relationship breakdowns

126.5. CGT event involving spouses
126.15. CGT event involving company or trustee
126.20. Subsequent CGT event happening to roll-over asset where transferor was a CFC or a non-resident trust
126.25. Conditions for the purposes of subsections 126-5(3A) and 126-15(5)

Subdivision 126-B--Companies in the same wholly-owned group

126.40. What this Subdivision is about
126.45. Roll-over for members of wholly-owned group
126.50. Requirements for roll-over
126.55. When there is a roll-over
126.60. Consequences of roll-over
126.75. Originating company is a CFC
126.85. Effect of roll-over on certain liquidations

Subdivision 126-C--Changes to trust deeds

126.125.What this Subdivision is about
126.130.Changes to trust deeds
126.135.Consequences of roll-over

Subdivision 126-D--Small superannuation funds

126.140.CGT event involving small superannuation funds

Subdivision 126-E--Entitlement to shares after demutualisation and scrip for scrip roll-over

126.185.What this Subdivision is about
126.190.When there is a roll-over
126.195.Consequences of roll-over

Subdivision 126-G--Transfer of assets between certain trusts

126.215.What this Subdivision is about
126.220.Object of this Subdivision
126.225.When a roll-over may be chosen
126.230.Beneficiaries' entitlements not be discretionary etc.
126.235.Exceptions for roll-over
126.240.Consequences for the trusts
126.245.Consequences for beneficiaries--general approach for working out cost base etc.
126.250.Consequences for beneficiaries--other approach for working out cost base etc.
126.255.No other cost base etc. adjustment for beneficiaries
126.260.Giving information to beneficiaries
126.265.Interest sale facilities

Division 128--Effect of death

128.1. What this Division is about
128.10. Capital gain or loss when you die is disregarded
128.15. Effect on the legal personal representative or beneficiary
128.20. When does an asset pass to a beneficiary?
128.25. The beneficiary is a trustee of a superannuation fund etc.
128.50. Joint tenants

Division 130--Investments

130.1. What this Division is about

Subdivision 130-A--Bonus shares and units

130.15. Acquisition time and cost base of bonus equities
130.20. Issue of bonus shares or units

Subdivision 130-B--Rights

130.40. Exercise of rights
130.45. Timing rules
130.50. Application to options

Subdivision 130-C--Convertible interests

130.60. Shares or units acquired by converting a convertible interest

Subdivision 130-D--Employee share schemes

130.75. Objects of Subdivision
130.80. ESS interests acquired under employee share schemes
130.85. Interests in employee share trusts
130.90. Shares held by employee share trusts
130.95. Shares and rights in relation to ESS interests
130.97. Application of certain provisions of Division 83A

Subdivision 130-E--Exchangeable interests

130.100. Exchangeable interest.

130.105.Shares acquired in exchange for the disposal or redemption of an exchangeable interest

Subdivision 130-F--Exploration investments

130.110.Reducing the reduced cost base before disposal

Division 132--Leases

132.1. Lessee incurs expenditure to get lease term varied or waived
132.5. Lessor pays lessee for improvements
132.10. Grant of a long-term lease
132.15. Lessee of land acquires reversionary interest of lessor

Division 134--Options

134.1. Exercise of options

Division 137--Granny flat arrangements

Subdivision 137-A--When CGT events do not happen

137.1. What this Subdivision is about
137.10. Meaning of key terms
137.15. CGT event does not happen when a certain kind of granny flat arrangement is entered into
137.20. CGT event does not happen when a certain kind of granny flat arrangement is varied
137.25. CGT event does not happen when a certain kind of granny flat arrangement is terminated

Division 149--When an asset stops being a pre-CGT asset

Subdivision 149-A--Key concepts

149.10. What is a pre-CGT asset?
149.15. Majority underlying interests in a CGT asset

Subdivision 149-B--When asset of non-public entity stops being a pre-CGT asset

149.25. Which entities are affected
149.30. Effects if asset no longer has same majority underlying ownership
149.35. Cost base elements of asset that stops being a pre-CGT asset

Subdivision 149-C--When asset of public entity stops being a pre-CGT asset

149.50. Which entities are affected
149.55. Entity to give the Commissioner evidence periodically as to whether asset still has same majority underlying ownership
149.60. What the evidence must show
149.70. Effects if asset no longer has same majority underlying ownership
149.75. Cost base elements of asset that stops being a pre-CGT asset
149.80. No more evidence needed after asset stops being a pre-CGT asset

Subdivision 149-F--How to treat a "demutualised" public entity

149.162.Subdivision applies only if entity gives sufficient evidence
149.165.Members treated as having underlying interests in assets until demutualisation
149.170.Effect of demutualisation of interposed company

Division 152--Small business relief

152.1. What this Division is about

Subdivision 152-A--Basic conditions for relief under this Division

152.5. What this Subdivision is about
152.10. Basic conditions for relief
152.12. Special conditions for CGT event D1
152.15. Maximum net asset value test
152.20. Meaning of net value of the CGT assets
152.35. Active asset test
152.40. Meaning of active asset
152.45. Continuing time periods for involuntary disposals
152.47. Spouses or children taken to be affiliates for certain passively held CGT assets
152.48. Working out an entity's aggregated turnover for passively held CGT assets
152.49. Businesses that are winding up
152.50. Significant individual test
152.55. Meaning of significant individual
152.60. Meaning of CGT concession stakeholder
152.65. Small business participation percentage
152.70. Direct small business participation percentage
152.75. Indirect small business participation percentage
152.78. Trustee of discretionary trust may nominate beneficiaries to be controllers of trust
152.80. CGT event happens to an asset or interest within 2 years of individual's death

Subdivision 152-B--Small business 15-year exemption

152.100.What this Subdivision is about
152.105.15-year exemption for individuals
152.110.15-year exemption for companies and trusts
152.115.Continuing time periods for involuntary disposals
152.125.Payments to company's or trust's CGT concession stakeholders are exempt

Subdivision 152-C--Small business 50

152.200.What this Subdivision is about
152.205.You get the small business 50% reduction
152.210.You may also get the small business retirement exemption and small business roll-over relief
152.215.15-year rule has priority
152.220.You may choose not to apply this Subdivision

Subdivision 152-D--Small business retirement exemption

152.300.What this Subdivision is about
152.305.Choosing the exemption
152.310.Consequences of choice
152.315.Choosing the amount to disregard
152.320.Meaning of CGT retirement exemption limit
152.325.Company or trust conditions
152.330.15-year rule has priority

Subdivision 152-E--Small business roll-over

152.400.What this Subdivision is about
152.410.When you can obtain the roll-over
152.415.What the roll-over consists of
152.420.Rules where an individual who has obtained a roll-over dies
152.430.15-year rule has priority

PART 3-5--CORPORATE TAXPAYERS AND CORPORATE DISTRIBUTIONS

Division 160--Corporate loss carry back tax offset for 2020-21, 2021-22 or 2022-23 for businesses with turnover under

160.1. What this Division is about

Subdivision 160-A--Entitlement to and amount of loss carry back tax offset

160.5. Entitlement to loss carry back tax offset
160.10. Amount of loss carry back tax offset

Subdivision 160-B--Loss carry back choice

160.15. Loss carry back choice
160.16. Changing a loss carry back choice
160.20. Entity must have had turnover less than $5 billion for loss year
160.25. Entity must have been a corporate tax entity during relevant years
160.30. Transferred tax losses, income tax liabilities etc. not included
160.35. Integrity rule--no loss carry back tax offset if scheme entered into

Division 164--Non-share capital accounts for companies

164.1. What this Division is about
164.5. Object
164.10. Non-share capital account
164.15. Credits to non-share capital account
164.20. Debits to non-share capital account

Division 165--Income tax consequences of changing ownership or control of a company

165.1. What this Division is about

Subdivision 165-A--Deducting tax losses of earlier income years

165.5. What this Subdivision is about
165.10. To deduct a tax loss
165.12. Company must maintain the same owners
165.13. Alternatively, the company must satisfy the business continuity test
165.15. The same people must control the voting power, or the company must satisfy the business continuity test
165.20. When company can deduct part of a tax loss

Subdivision 165-B--Working out the taxable income and tax loss for the income year of the change

165.23. What this Subdivision is about
165.25. Summary of this Subdivision
165.30. Flow chart showing the application of this Subdivision
165.35. On a change of ownership, unless the company satisfies the business continuity test
165.37. Who has more than a 50% stake in the company during a period
165.40. On a change of control of the voting power in the company, unless the company satisfies the business continuity test
165.45. First, divide the income year into periods
165.50. Next, calculate the notional loss or notional taxable income for each period
165.55. How to attribute deductions to periods
165.60. How to attribute assessable income to periods
165.65. How to calculate the company's taxable income for the income year
165.70. How to calculate the company's tax loss for the income year
165.75. How to calculate the company's notional loss or notional taxable income for a period when the company was a partner
165.80. How to calculate the company's share of a partnership's notional loss or notional net income for a period if both entities have the same income year
165.85. How to calculate the company's share of a partnership's notional loss or notional net income for a period if the entities have different income years
165.90. Company's full year deductions include a share of partnership's full year deductions

Subdivision 165-CA--Applying net capital losses of earlier income years

165.93. What this Subdivision is about
165.96. When a company cannot apply a net capital loss

Subdivision 165-CB--Working out the net capital gain and the net capital loss for the income year of the change

165.99. What this Subdivision is about
165.102.On a change of ownership, or of control of voting power, unless the company satisfies the business continuity test
165.105.First, divide the income year into periods
165.108.Next, calculate the notional net capital gain or notional net capital loss for each period
165.111.How to work out the company's net capital gain
165.114.How to work out the company's net capital loss

Subdivision 165-CC--Change of ownership or control of company that has an unrealised net loss

165.115.What this Subdivision is about
165.115AA.Special rules to save compliance costs
165.115A.Application of Subdivision
165.115B.What happens when the company makes a capital loss or becomes entitled to a deduction in respect of a CGT asset after a changeover time
165.115BA.What happens when a CGT event happens after a changeover time to a CGT asset of the company that is trading stock
165.115BB.Order of application of assets: residual unrealised net loss
165.115C.Changeover time--change in ownership of company
165.115D.Changeover time--change in control of company
165.115E.What is an unrealised net loss
165.115F.Notional gains and losses

Subdivision 165-CD--Reductions after alterations in ownership or control of loss company

165.115GA.What this Subdivision is about
165.115GB.When adjustments must be made
165.115GC.How adjustments are calculated
165.115H.How this Subdivision applies
165.115J.Object of Subdivision
165.115K.Application and interpretation
165.115L.Alteration time--alteration in ownership of company
165.115M.Alteration time--alteration in control of company
165.115N.Alteration time--declaration by liquidator or administrator
165.115P.Notional alteration time--disposal of interests in company within 12 months before alteration time
165.115Q.Notional alteration time--disposal of interests in company earlier than 12 months before alteration time
165.115R.When company is a loss company at first or only alteration time in income year
165.115S.When company is a loss company at second or later alteration time in income year
165.115T.Reduction of certain amounts included in company's overall loss at alteration time
165.115U.Adjusted unrealised loss
165.115V.Notional losses
165.115W.Calculation of trading stock decrease
165.115X.Relevant equity interest
165.115Y.Relevant debt interest
165.115Z.What constitutes a controlling stake in a company
165.115ZA.Reductions and other consequences if entity has relevant equity interest or relevant debt interest in loss company immediately before alteration time
165.115ZB.Adjustment amounts for the purposes of section 165-115ZA
165.115ZC.Notices to be given
165.115ZD.Adjustment (or further adjustment) for interest realised at a loss after global method has been used

Subdivision 165-C--Deducting bad debts

165.117.What this Subdivision is about
165.119.Application of Subdivision
165.120.To deduct a bad debt
165.123.Company must maintain the same owners
165.126.Alternatively, the company must satisfy the business continuity test
165.129.Same people must control the voting power, or the company must satisfy the business continuity test
165.132.When tax losses resulting from bad debts cannot be deducted

Subdivision 165-D--Tests for finding out whether the company has maintained the same owners

165.150.Who has more than 50% of the voting power in the company
165.155.Who has rights to more than 50% of the company's dividends
165.160.Who has rights to more than 50% of the company's capital distributions
165.165.Rules about tests for a condition or occurrence of a circumstance
165.175.Tests can be satisfied by a single person
165.180.Arrangements affecting beneficial ownership of shares
165.185.Shares treated as not having carried rights
165.190.Shares treated as always having carried rights
165.200.Rules do not affect totals of shares, units in unit trusts or rights carried by shares and units
165.202.Shares held by government entities and charities etc.
165.203.Companies where no shares have been issued
165.205.Death of share owner
165.207.Trustees of family trusts
165.208.Companies in liquidation etc.
165.209.Dual listed companies

Subdivision 165-E--Business continuity test

165.210.The business continuity test--carrying on the same business
165.211.The business continuity test--carrying on a similar business
165.212D.Restructure of MDOs etc.
165.212E.Entry history rule does not apply for the purposes of sections 165-210 and 165-211

Subdivision 165-F--Special provisions relating to ownership by non-fixed trusts

165.215.Special alternative to change of ownership test for Subdivision 165-A
165.220.Special alternative to change of ownership test for Subdivision 165-B
165.225.Special way of dividing the income year under Subdivision 165-B
165.230.Special alternative to change of ownership test for Subdivision 165-C
165.235.Information about non-fixed trusts with interests in company
165.240.Notices where requirements of section 165-235 are met
165.245.When an entity has a fixed entitlement to income or capital of a company

Subdivision 165-G--Other special provisions

165.250.Control of companies in liquidation etc.
165.255.Incomplete periods

Division 166--Income tax consequences of changing ownership or control of a widely held or eligible Division 166 company

166.1. What this Division is about

Subdivision 166-AA--The object of this Division

166.3. The object of this Division

Subdivision 166-A--Deducting tax losses of earlier income years

166.5. How Subdivision 165-A applies to a widely held or eligible Division 166 company
166.15. Companies can choose that this Subdivision is not to apply to them

Subdivision 166-B--Working out the taxable income, tax loss, net capital gain and net capital loss for the income year of the change

166.20. How Subdivisions 165-B and 165-CB apply to a widely held or eligible Division 166 company
166.25. How to work out the taxable income, tax loss, net capital gain and net capital loss
166.35. Companies can choose that this Subdivision is not to apply to them

Subdivision 166-C--Deducting bad debts

166.40. How Subdivision 165-C applies to a widely held or eligible Division 166 company
166.50. Companies can choose that this Subdivision is not to apply to them

Subdivision 166-CA--Changeover times and alteration times

166.80. How Subdivision 165-CC or 165-CD applies to a widely held or eligible Division 166 company
166.90. Companies can choose that this Subdivision is not to apply to them

Subdivision 166-D--Tests for finding out whether the widely held or eligible Division 166 company has maintained the same owners

166.135.What this Subdivision is about
166.145.The ownership tests: substantial continuity of ownership
166.165.Relationship with rules in Division 165
166.175.Corporate change in a company

Subdivision 166-E--Concessional tracing rules

166.215.What this Subdivision is about
166.220.Application of this Subdivision
166.225.Direct stakes of less than 10% in the tested company
166.230.Indirect stakes of less than 10% in the tested company
166.235.Voting, dividend and capital stakes
166.240.Stakes held directly and/or indirectly by widely held companies
166.245.Stakes held by other entities
166.255.Bearer shares in foreign listed companies
166.260.Depository entities holding stakes in foreign listed companies
166.265.Persons who actually control voting power or have rights are taken not to control power or have rights
166.270.Single notional entity stakeholders taken to have minimum voting control, dividend rights and capital rights
166.272.Same shares or interests to be held
166.275.Rules in this Subdivision intended to be concessional
166.280.Controlled test companies

Division 167--Companies whose shares carry unequal rights to dividends, capital distributions or voting power

167.1. What this Division is about

Subdivision 167-A--Rights to dividends or capital distributions

167.5. What this Subdivision is about
167.7. Simplified outline of this Subdivision
167.10. When this Subdivision applies
167.15. First way--disregard debt interests
167.20. Second way--also disregard secondary share classes
167.25. Third way--treat remaining shares as having fixed rights to dividends and capital distributions
167.30. Fixing rights if practicable to work out market values
167.35. Fixing rights if impracticable to work out market values etc.
167.40. The valuing times for conditions listed in subsection 167-10(1)

Subdivision 167-B--Voting power

167.75. What this Subdivision is about
167.80. When this Subdivision applies
167.85. Different method for working out voting power
167.90. Dual listed companies

Division 170--Treatment of certain company groups for income tax purposes

Subdivision 170-A--Transfer of tax losses within certain wholly-owned groups of companies

170.1. What this Subdivision is about
170.5. Basic principles for transferring tax losses
170.10. When a company can transfer a tax loss
170.15. Income company is taken to have incurred transferred loss
170.20. Who can deduct transferred loss
170.25. Tax treatment of consideration for transferred tax loss
170.30. Companies must be in existence and members of the same wholly-owned group etc.
170.32. Tax loss incurred by the loss company because of a transfer under Subdivision 707-A
170.33. Alternative test of relations between the loss company and other companies
170.35. The loss company
170.40. The income company
170.42. If the income company has become the head company of a consolidated group or MEC group
170.45. Maximum amount that can be transferred
170.50. Transfer by written agreement
170.55. Losses must be transferred in order they are incurred
170.60. Income company cannot transfer transferred tax loss
170.65. Agreement transfers as much as can be transferred
170.70. Amendment of assessments
170.75. Treatment like Australian branches of foreign banks

Subdivision 170-B--Transfer of net capital losses within certain wholly-owned groups of companies

170.101.What this Subdivision is about
170.105.Basic principles for transferring a net capital loss
170.110.When a company can transfer a net capital loss
170.115.Who can apply transferred loss
170.120.Gain company is taken to have made transferred loss
170.125.Tax treatment of consideration for transferred tax loss
170.130.Companies must be in existence and members of the same wholly-owned group etc.
170.132.Net capital loss made by the loss company because of a transfer under Subdivision 707-A
170.133.Alternative test of relations between the loss company and other companies
170.135.The loss company
170.140.The gain company
170.142.If the gain company has become the head company of a consolidated group or MEC group
170.145.Maximum amount that can be transferred
170.150.Transfer by written agreement
170.155.Losses must be transferred in order they are made
170.160.Gain company cannot transfer transferred net capital loss
170.165.Agreement transfers as much as can be transferred
170.170.Amendment of assessments
170.174.Treatment like Australian branches of foreign banks

Subdivision 170-C--Provisions applying to both transfers of tax losses and transfers of net capital losses within wholly-owned groups of companies

170.201.What this Subdivision is about
170.205.Object of Subdivision
170.210.Transfer of tax loss: direct and indirect interests in the loss company
170.215.Transfer of tax loss: direct and indirect interests in the income company
170.220.Transfer of net capital loss: direct and indirect interests in the loss company
170.225.Transfer of net capital loss: direct and indirect interests in the gain company

Subdivision 170-D--Transactions by a company that is a member of a linked group

170.250.What this Subdivision is about
170.255.Application of Subdivision
170.260.Linked group
170.265.Connected entity
170.270.Immediate consequences for originating company
170.275.Subsequent consequences for originating company
170.280.What happens if certain events happen in respect of the asset

Division 175--Use of a company's tax losses or deductions to avoid income tax

175.1. What this Division is about

Subdivision 175-A--Tax benefits from unused tax losses

175.5. When Commissioner can disallow deduction for tax loss
175.10. First case: income or capital gain injected into company because of available tax loss
175.15. Second case: someone else obtains a tax benefit because of tax loss available to company

Subdivision 175-B--Tax benefits from unused deductions

175.20. Income or capital gain injected into company because of available deductions
175.25. Deduction injected into company because of available income or capital gain
175.30. Someone else obtains a tax benefit because of a deduction, income or capital gain available to company
175.35. Tax loss resulting from disallowed deductions

Subdivision 175-CA--Tax benefits from unused net capital losses of earlier income years

175.40. When Commissioner can disallow net capital loss of earlier income year
175.45. First case: capital gain injected into company because of available net capital loss
175.50. Second case: someone else obtains a tax benefit because of net capital loss available to company

Subdivision 175-CB--Tax benefits from unused capital losses of the current year

175.55. When Commissioner can disallow capital loss of current year
175.60. Capital gain injected into company because of available capital loss
175.65. Capital loss injected into company because of available capital gain
175.70. Someone else obtains a tax benefit because of capital loss or gain available to company
175.75. Net capital loss resulting from disallowed capital losses

Subdivision 175-C--Tax benefits from unused bad debt deductions

175.80. When Commissioner can disallow deduction for bad debt
175.85. First case: income or capital gain injected into company because of available bad debt
175.90. Second case: someone else obtains a tax benefit because of bad debt deduction available to company

Subdivision 175-D--Common rules

175.95. When a person has a shareholding interest in the company
175.100.Commissioner may disallow excluded losses etc. of insolvent companies

Division 180--Information about family trusts with interests in companies

180.1. What this Division is about

Subdivision 180-A--Information relevant to Division 165

180.5. Information about family trusts with interests in companies
180.10. Notice where requirements of section 180-5 are met

Subdivision 180-B--Information relevant to Division 175

180.15. Information about family trusts with interests in companies
180.20. Notice where requirements of section 180-15 are met

Division 195--Special types of company

Subdivision 195-A--Pooled development funds

195.1. What this Subdivision is about
195.5. Deductibility of PDF tax losses
195.10. PDF cannot transfer tax loss
195.15. Tax loss for year in which company becomes a PDF
195.25. Applying a PDF's net capital losses
195.30. PDF cannot transfer net capital loss
195.35. Net capital loss for year in which company becomes a PDF
195.37. PDF cannot carry back tax loss

Subdivision 195-B--Limited partnerships

195.60. What this Subdivision is about
195.65. Tax losses cannot be transferred to a VCLP, an ESVCLP, an AFOF or a VCMP
195.70. Previous tax losses can be deducted after ceasing to be a VCLP, an ESVCLP, an AFOF or a VCMP
195.72. Tax losses cannot be carried back to before ceasing to be a VCLP, an ESVCLP, an AFOF or a VCMP
195.75. Determinations to take account of income years of less than 12 months

Subdivision 195-C--Corporate collective investment vehicles

195.100.What this Subdivision is about
195.105.Effect of this Subdivision
195.110.Each sub-fund of a CCIV is taken to be a separate trust
195.115.A CCIV sub-fund trust is a unit trust
195.120.Beneficiary of a CCIV sub-fund trust has fixed entitlements to shares of income and capital of the trust
195.123.How to work out the income of the trust estate of a CCIV sub-fund trust for an income year
195.125.When a beneficiary of a CCIV sub-fund trust is presently entitled to trust income
195.127.When a beneficiary of a CCIV sub-fund trust has an individual interest in exempt income and non-assessable non-exempt income of the trust estate
195.130.Application of Division 275 (managed investment trusts) to a CCIV sub-fund trust
195.135.Application of Division 276 (AMITs) to a CCIV sub-fund trust
195.140.Entry on Australian Business Register

Division 197--Tainted share capital accounts

197.1. What this Division is about

Subdivision 197-A--What transfers into a company's share capital account does this Division apply to

197.5. Division generally applies to an amount transferred to share capital account from another account
197.10. Exclusion for amounts that could be identified as share capital
197.15. Exclusion for amounts transferred under debt/equity swaps
197.20. Exclusion for amounts transferred leading to there being no shares with a par value--non-Corporations Act companies
197.25. Exclusion for transfers from option premium reserves
197.30. Exclusion for transfers made in connection with demutualisations of non-insurance etc. companies
197.35. Exclusion for transfers made in connection with demutualisations of insurance etc. companies
197.37. Exclusion for transfers made in connection with demutualisations of private health insurers
197.38. Exclusion for transfers connected with demutualisations of friendly society health or life insurers
197.40. Exclusion for post-demutualisation transfers relating to life insurance companies
197.42. Exclusion for exploration credits

Subdivision 197-B--Consequence of transfer

197.45. A franking debit arises in relation to the transfer

Subdivision 197-C--Consequence of transfer

197.50. The share capital account becomes tainted (if it is not already tainted)
197.55. Choosing to untaint a tainted share capital account
197.60. Choosing to untaint--liability to untainting tax
197.65. Choosing to untaint--further franking debits may arise
197.70. Due date for payment of untainting tax
197.75. General interest charge for late payment of untainting tax
197.80. Notice of liability to pay untainting tax
197.85. Evidentiary effect of notice of liability to pay untainting tax

CHAPTER 3--Specialist liability rules

PART 3-6--THE IMPUTATION SYSTEM

Division 200--Guide to Part 3-6

200.1. What this Division is about
200.5. The imputation system
200.10. Franking a distribution
200.15. The franking account
200.20. How a distribution is franked
200.25. A corporate tax entity must not give its members credit for more tax than the entity has paid
200.30. Benchmark rule
200.35. Effect of receiving a franked distribution
200.40. An Australian corporate tax entity can pass the benefit of having received a franked distribution on to its members
200.45. Special rules for franking by some entities

Division 201--Objects and application of Part 3-6

201.1. Objects
201.5. Application of this Part

Division 202--Franking a distribution

Subdivision 202-A--Franking a distribution

202.1. What this Subdivision is about
202.5. Franking a distribution

Subdivision 202-B--Who can frank a distribution

202.10. What this Subdivision is about
202.15. Franking entities
202.20. Residency requirement when making a distribution

Subdivision 202-C--Which distributions can be franked

202.25. What this Subdivision is about
202.30. Frankable distributions
202.35. Object
202.40. Frankable distributions
202.45. Unfrankable distributions
202.47. Distributions of certain ADI profits following restructure

Subdivision 202-D--Amount of the franking credit on a distribution

202.50. What this Subdivision is about
202.55. What is the maximum franking credit for a frankable distribution?
202.60. Amount of the franking credit on a distribution
202.65. Where the franking credit stated in the distribution statement exceeds the maximum franking credit for the distribution

Subdivision 202-E--Distribution statements

202.70. What this Subdivision is about
202.75. Obligation to give a distribution statement
202.80. Distribution statement
202.85. Changing the franking credit on a distribution by amending the distribution statement

Division 203--Benchmark rule

203.1. What this Division is about
203.5. Benchmark rule
203.10. Benchmark franking percentage
203.15. Object
203.20. Application of the benchmark rule
203.25. Benchmark rule
203.30. Setting a benchmark franking percentage
203.35. Franking percentage
203.40. Franking periods--where the entity is not a private company
203.45. Franking period--private companies
203.50. Consequences of breaching the benchmark rule
203.55. Commissioner's powers to permit a departure from the benchmark rule

Division 204--Anti-streaming rules

Subdivision 204-A--Objects and application

204.1. Objects
204.5. Application

Subdivision 204-B--Linked distributions

204.10. What this Subdivision is about
204.15. Linked distributions

Subdivision 204-C--Substituting tax-exempt bonus share for franked distributions

204.20. What this Subdivision is about
204.25. Substituting tax-exempt bonus shares for franked distributions

Subdivision 204-D--Streaming distributions

204.26. What this Subdivision is about
204.30. Streaming distributions
204.35. When does a franking debit arise if the Commissioner makes a determination under paragraph 204-30(3)(a)
204.40. Amount of the franking debit
204.41. Amount of the exempting debit
204.45. Effect of a determination about distributions to favoured members
204.50. Assessment and notice of determination
204.55. Right to review where a determination made

Subdivision 204-E--Disclosure requirements

204.65. What this Subdivision is about
204.70. Application of this Subdivision
204.75. Notice to the Commissioner
204.80. Commissioner may require information where the Commissioner suspects streaming

Division 205--Franking accounts, franking deficit tax liabilities and the related tax offset

205.1. What this Division is about
205.5. Franking accounts, franking deficit tax liabilities and the related tax offset
205.10. Each entity that is or has been a corporate tax entity has a franking account
205.15. Franking credits
205.20. Paying a PAYG instalment, income tax or diverted profits tax
205.25. Residency requirement for an event giving rise to a franking credit or franking debit
205.30. Franking debits
205.35. Refund of income tax or diverted profits tax
205.40. Franking surplus and deficit
205.45. Franking deficit tax
205.50. Deferring franking deficit
205.70. Tax offset arising from franking deficit tax liabilities

Division 207--Effect of receiving a franked distribution

207.5. Overview

Subdivision 207-A--Effect of receiving a franked distribution generally

207.10. What this Subdivision is about
207.15. Applying the general rule
207.20. General rule--gross-up and tax offset

Subdivision 207-B--Franked distribution received through certain partnerships and trustees

207.25. What this Subdivision is about
207.30. Applying this Subdivision
207.35. Gross-up--distribution made to, or flows indirectly through, a partnership or trustee
207.37. Attributable franked distribution--trusts
207.45. Tax offset--distribution flows indirectly to an entity
207.50. When a franked distribution flows indirectly to or through an entity
207.55. Share of a franked distribution
207.57. Share of the franking credit on a franked distribution
207.58. Specifically entitled to an amount of a franked distribution
207.59. Franked distributions within class treated as single franked distribution

Subdivision 207-C--Residency requirements for the general rule

207.60. What this Subdivision is about
207.65. Satisfying the residency requirement
207.70. Gross-up and tax offset under section 207-20
207.75. Residency requirement

Subdivision 207-D--No gross-up or tax offset where distribution would not be taxed

207.80. What this Subdivision is about
207.85. Applying this Subdivision
207.90. Distribution that is made to an entity
207.95. Distribution that flows indirectly to an entity

Subdivision 207-E--Exceptions to the rules in Subdivision 207-D

207.105.What this Subdivision is about
207.110.Effect of non-assessable income on gross up and tax offset
207.115.Which exempt institutions are eligible for a refund?
207.117.Residency requirement
207.119.Entity not treated as exempt institution eligible for refund in certain circumstances
207.120.Entity may be ineligible because of a distribution event
207.122.Entity may be ineligible if distribution is in the form of property other than money
207.124.Entity may be ineligible if other money or property also acquired
207.126.Entity may be ineligible if distributions do not match trust share amounts
207.128.Reinvestment choice
207.130.Controller's liability
207.132.Treatment of benefits provided by an entity to a controller
207.134.Entity's present entitlement disregarded in certain circumstances
207.136.Review of certain decisions

Subdivision 207-F--No gross-up or tax offset where the imputation system has been manipulated

207.140.What this Subdivision is about
207.145.Distribution that is made to an entity
207.150.Distribution that flows indirectly to an entity
207.155.When is a distribution made as part of a dividend stripping operation?
207.157.Distribution washing
207.158.Distributions entitled to a foreign income tax deduction
207.160.Distribution that is treated as an interest payment

Division 208--Exempting entities and former exempting entities

208.5. What is an exempting entity?
208.10. Former exempting entities
208.15. Distributions by exempting entities and former exempting entities

Subdivision 208-A--What are exempting entities and former exempting entities

208.20. Exempting entities
208.25. Effective ownership of entity by prescribed persons
208.30. Accountable membership interests
208.35. Accountable partial interests
208.40. Prescribed persons
208.45. Persons who are taken to be prescribed persons
208.50. Former exempting companies

Subdivision 208-B--Franking with an exempting credit

208.55. What this Subdivision is about
208.60. Franking with an exempting credit

Subdivision 208-C--Amount of the exempting credit on a distribution

208.65. What this Subdivision is about
208.70. Amount of the exempting credit on a distribution

Subdivision 208-D--Distribution statements

208.75. Guide to Subdivision 208-D
208.80. Additional information to be included by a former exempting entity or exempting entity

Subdivision 208-E--Distributions to be franked with exempting credits to the same extent

208.85. What this Subdivision is about
208.90. All frankable distributions made within a franking period must be franked to the same extent with an exempting credit
208.95. Exempting percentage
208.100.Consequences of breaching the rule in section 208-90

Subdivision 208-F--Exempting accounts and franking accounts of exempting entities and former exempting entities

208.105.What this Subdivision is about
208.110.Exempting account
208.115.Exempting credits
208.120.Exempting debits
208.125.Exempting surplus and deficit
208.130.Franking credits arising because of status as exempting entity or former exempting entity
208.135.Relationships that will give rise to a franking credit under item 5 of the table in section 208-130
208.140.Membership of the same effectively wholly-owned group
208.145.Franking debits arising because of status as exempting entity or former exempting entity
208.150.Residency requirement
208.155.Eligible continuing substantial member
208.160.Distributions that are affected by a manipulation of the imputation system
208.165.Amount of the exempting credit or franking credit arising because of a distribution franked with an exempting credit
208.170.Where a determination under paragraph 177EA(5)(b) of the Income Tax Assessment Act 1936 affects part of the distribution
208.175.When does a distribution franked with an exempting credit flow indirectly to an entity?
208.180.What is an entity's share of the exempting credit on a distribution?
208.185.Minister may convert exempting surplus to franking credit of former exempting entity previously owned by the Commonwealth

Subdivision 208-G--Tax effects of distributions by exempting entities

208.190.What this Subdivision is about
208.195.Division 207 does not generally apply
208.200.Distributions to exempting entities
208.205.Distributions to employees acquiring shares under eligible employee share schemes
208.215.Eligible employee share schemes

Subdivision 208-H--Tax effect of a distribution franked with an exempting credit

208.220.What this Subdivision is about
208.225.Division 207 does not generally apply
208.230.Distributions to exempting entities and former exempting entities
208.235.Distributions to employees acquiring shares under eligible employee share schemes
208.240.Distributions to certain individuals

Division 210--Venture capital franking

210.1. Purpose of venture capital franking
210.5. How is this achieved?
210.10. What is a venture capital credit?
210.15. What does the PDF have to do to distribute the credits?
210.20. Limits on venture capital franking

Subdivision 210-A--Franking a distribution with a venture capital credit

210.25. What this Subdivision is about
210.30. Franking a distribution with a venture capital credit

Subdivision 210-B--Participating PDFs

210.35. What this Subdivision is about
210.40. What is a participating PDF

Subdivision 210-C--Distributions that are frankable with a venture capital credit

210.45. What this Subdivision is about
210.50. Which distributions can be franked with a venture capital credit?

Subdivision 210-D--Amount of the venture capital credit on a distribution

210.55. What this Subdivision is about
210.60. Amount of the venture capital credit on a distribution

Subdivision 210-E--Distribution statements

210.65. What this Subdivision is about
210.70. Additional information to be included when a distribution is franked with a venture capital credit

Subdivision 210-F--Rules affecting the allocation of venture capital credits

210.75. What this Subdivision is about
210.80. Draining the venture capital surplus when a distribution frankable with venture capital credits is made
210.81. Distributions to be franked with venture capital credits to the same extent
210.82. Consequences of breaching the rule in section 210-81

Subdivision 210-G--Venture capital sub-account

210.85. What this Subdivision is about
210.90. The venture capital sub-account
210.95. Venture capital deficit tax
210.100.Venture capital sub-account
210.105.Venture capital credits
210.110.Determining the extent to which a franking credit is reasonably attributable to a particular payment of tax
210.115.Participating PDF may elect to have venture capital credits arise on its assessment day
210.120.Venture capital debits
210.125.Venture capital debit where CGT limit is exceeded
210.130.Venture capital surplus and deficit
210.135.Venture capital deficit tax
210.140.Effect of a liability to pay venture capital deficit tax on franking deficit tax
210.145.Effect of a liability to pay venture capital deficit tax on the franking account
210.150.Deferring venture capital deficit

Subdivision 210-H--Effect of receiving a distribution franked with a venture capital credit

210.155.What this Subdivision is about
210.160.The significance of a venture capital credit
210.165.Recipients for whom the venture capital credit is not significant
210.170.Tax offset for certain recipients of distributions franked with venture capital credits
210.175.Amount of the tax offset
210.180.Application of Division 207 where the recipient is entitled to a tax offset under section 210-170

Division 214--Administering the imputation system

214.1. Purpose of the system
214.5. Key features

Subdivision 214-A--Franking returns

214.10. What this Subdivision is about
214.15. Requirement to give franking return--general
214.20. Notice to a specific corporate tax entity
214.25. Content and form of a franking return
214.30. Franking account balance
214.35. Venture capital sub-account balance
214.40. Meaning of franking tax
214.45. Effect of a refund on franking returns

Subdivision 214-B--Franking assessments

214.55. What this Subdivision is about
214.60. Commissioner may make a franking assessment
214.65. Commissioner taken to have made a franking assessment on first return
214.70. Part-year assessment
214.75. Validity of assessment
214.80. Objections

Subdivision 214-C--Amending franking assessments

214.90. What this Subdivision is about
214.95. Amendments within 3 years of the original assessment
214.100.Amended assessments are treated as franking assessments
214.105.Further return as a result of a refund affecting a franking deficit tax liability
214.110.Later amendments--on request
214.115.Later amendments--failure to make proper disclosure
214.120.Later amendments--fraud or evasion
214.125.Further amendment of an amended particular
214.135.Amendment on review etc.
214.140.Notice of amendments

Subdivision 214-D--Collection and recovery

214.145.What this Subdivision is about
214.150.Due date for payment of franking tax
214.155.General interest charge
214.160.Refunds of amounts overpaid

Subdivision 214-E--Records

214.170.What this Subdivision is about
214.175.Record keeping

Division 215--Consequences of the debt

Subdivision 215-A--Application of the imputation system to non-share equity interests

215.1. Application of the imputation system to non-share equity interests

Subdivision 215-B--Non-share dividends that are unfrankable to some extent

215.5. What this Subdivision is about
215.10. Certain non-share dividends by ADIs unfrankable
215.15. Non-share dividends are unfrankable if profits are unavailable
215.20. Working out the available frankable profits
215.25. Anticipating available frankable profits

Division 216--Cum dividend sales and securities lending arrangements

Subdivision 216-A--Circumstances where a distribution to a member of a corporate tax entity is treated as having been made to someone else

216.1. When a distribution made to a member of a corporate tax entity is treated as having been made to someone else
216.5. First situation (cum dividend sales)
216.10. Second situation (securities lending arrangements)
216.15. Distribution closing time

Subdivision 216-B--Statements to be made where there is a cum dividend sale or securities lending arrangement

216.20. Cum dividend sale--statement by securities dealer
216.25. Cum dividend sale--statement by party
216.30. Securities lending arrangements--statement by borrower

Division 218--Application of imputation rules to co-operative companies

218.5. Application of imputation rules to co-operative companies

Division 219--Imputation for life insurance companies

219.1. What this Division is about

Subdivision 219-A--Application of imputation rules to life insurance companies

219.10. Application of imputation rules to life insurance companies

Subdivision 219-B--Franking accounts of life insurance companies

219.15. Franking credits
219.30. Franking debits
219.40. Residency requirement
219.45. Assessment day
219.50. Amount attributable to shareholders' share of income tax liability
219.55. Adjustment resulting from an amended assessment
219.70. Tax offset under section 205-70
219.75. Working out franking credits and franking debits where a tax offset under section 205-70 is applied

Division 220--Imputation for NZ resident companies and related companies

220.1. What this Division is about

Subdivision 220-A--Objects of this Division

220.15. Objects
220.20. What is an NZ resident?

Subdivision 220-B--NZ company treated as Australian resident for imputation system if company chooses

220.25. Application of provisions of Part 3-6 outside this Division
220.30. What is an NZ franking company?
220.35. Making an NZ franking choice
220.40. When is an NZ franking choice in force?
220.45. Revoking an NZ franking choice
220.50. Cancelling an NZ franking choice

Subdivision 220-C--Modifications of other Divisions of this Part

220.100.Residency requirement for franking
220.105.Unfrankable distributions by NZ franking companies
220.110.Maximum franking credit under section 202-60
220.205.Franking credit for payment of NZ franking company's withholding tax liability
220.210.Effect of franked distribution to NZ franking company or flowing indirectly to NZ franking company
220.215.Effect on franking account if NZ franking choice ceases to be in force
220.300.NZ franking company's franking account affected by franking accounts of some of it s 100% subsidiaries
220.350.Providing for a franking credit to arise
220.400.Gross-up and tax offset for distribution from NZ franking company reduced by supplementary dividend
220.405.Franked distribution and supplementary dividend flowing indirectly
220.410.Franking credit reduced if tax offset reduced
220.500.Publicly listed post-choice NZ franking company and its 100% subsidiaries are not exempting entities
220.505.Post-choice NZ franking company is not automatically prescribed person
220.510.Parent company's status as prescribed person sets status of all other members of same wholly-owned group
220.605.Effect on exempting account if NZ franking choice ceases to be in force
220.700.Tax effect of distribution franked by NZ franking company with an exempting credit
220.800.Joint and several liability for NZ resident company's franking tax etc.

PART 3-10----FINANCIAL TRANSACTIONS

Division 230--Taxation of financial arrangements

230.1. What this Division is about
230.5. Scope of this Division

Subdivision 230-A--Core rules

230.10. Objects of this Division
230.15. Gains are assessable and losses deductible
230.20. Gain or loss to be taken into account only once under this Act
230.25. Associated financial benefits to be taken into account only once under this Act
230.30. Treatment of gains and losses related to exempt income and non-assessable non-exempt income
230.35. Treatment of gains and losses of private or domestic nature
230.40. Methods for taking gain or loss into account
230.45. Financial arrangement
230.50. Financial arrangement (equity interest or right or obligation in relation to equity interest)
230.55. Rights, obligations and arrangements (grouping and disaggregation rules)
230.60. When financial benefit provided or received under financial arrangement
230.65. Amount of financial benefit relating to more than one financial arrangement etc.
230.70. Apportionment when financial benefit received or right ceases
230.75. Apportionment when financial benefit provided or obligation ceases
230.80. Consistency in working out gains or losses (integrity measure)
230.85. Rights and obligations include contingent rights and obligations

Subdivision 230-B--The accruals

230.90. What this Subdivision is about
230.95. Objects of this Subdivision
230.100.When accruals method or realisation method applies
230.105.Sufficiently certain overall gain or loss
230.110.Sufficiently certain gain or loss from particular event
230.115.Sufficiently certain financial benefits
230.120.Financial arrangements with notional principal
230.125.Overview of the accruals method
230.130.Applying accruals method to work out period over which gain or loss is to be spread
230.135.How gain or loss is spread
230.140.Method of spreading gain or loss--effective interest method
230.145.Application of effective interest method where differing income and accounting years
230.150.Election for portfolio treatment of fees
230.155.Election for portfolio treatment of fees where differing income and accounting years
230.160.Portfolio treatment of fees
230.165.Portfolio treatment of premiums and discounts for acquiring portfolio
230.170.Allocating gain or loss to income years
230.172.Applying accruals method to loss resulting from impairment
230.175.Running balancing adjustments
230.180.Realisation method
230.185.Reassessment
230.190.Re-estimation
230.192.Re-estimation--impairments and reversals
230.195.Balancing adjustment if rate of return maintained on re-estimation
230.200.Re-estimation if balancing adjustment on partial disposal

Subdivision 230-C--Fair value method

230.205.Objects of this Subdivision
230.210.Fair value election
230.215.Fair value election where differing income and accounting years
230.220.Financial arrangements to which fair value election applies
230.225.Financial arrangements to which election does not apply
230.230.Applying fair value method to gains and losses
230.235.Splitting financial arrangements into 2 financial arrangements
230.240.When election ceases to apply
230.245.Balancing adjustment if election ceases to apply

Subdivision 230-D--Foreign exchange retranslation method

230.250.Objects of this Subdivision
230.255.Foreign exchange retranslation election
230.260.Foreign exchange retranslation election where differing income and accounting years
230.265.Financial arrangements to which general election applies
230.270.Financial arrangements to which general election does not apply
230.275.Balancing adjustment for election in relation to qualifying forex accounts
230.280.Applying foreign exchange retranslation method to gains and losses
230.285.When election ceases to apply
230.290.Balancing adjustment if election ceases to apply

Subdivision 230-E--Hedging financial arrangements method

230.295.Objects of this Subdivision
230.300.Applying hedging financial arrangement method to gains and losses
230.305.Table of events and allocation rules
230.310. Aligning tax classification of gain or loss from hedging financial arrangement with tax classification of hedged item
230.315.Hedging financial arrangement election
230.320.Hedging financial arrangement election where differing income and accounting years
230.325.Hedging financial arrangements to which election applies
230.330.Hedging financial arrangements to which election does not apply
230.335.Hedging financial arrangement and hedged item
230.340.Generally whole arrangement must be hedging financial arrangement
230.345.Requirements not satisfied because of honest mistake or inadvertence
230.350.Derivative financial arrangement and foreign currency hedge
230.355.Recording requirements
230.360.Determining basis for allocating gain or loss
230.365.Effectiveness of the hedge
230.370.When election ceases to apply
230.375.Balancing adjustment if election ceases to apply
230.380.Commissioner may determine that requirement met
230.385.Consequences of failure to meet requirements

Subdivision 230-F--Reliance on financial reports

230.390.Objects of this Subdivision
230.395.Election to rely on financial reports
230.400.Financial reports election where differing income and accounting years
230.405.Commissioner discretion to waive requirements in paragraphs 230-395(2)(c) and (e)
230.410.Financial arrangements to which the election applies
230.415.Financial arrangements not covered by election
230.420.Effect of election to rely on financial reports
230.425.When election ceases to apply
230.430.Balancing adjustment if election ceases to apply

Subdivision 230-G--Balancing adjustment on ceasing to have a financial arrangement

230.435.When balancing adjustment made
230.440.Exceptions
230.445.Balancing adjustment

Subdivision 230-H--Exceptions

230.450.Short-term arrangements where non-money amount involved
230.455.Certain taxpayers where no significant deferral
230.460.Various rights and/or obligations
230.465.Ceasing to have a financial arrangement in certain circumstances
230.470.Forgiveness of commercial debts
230.475.Clarifying exceptions
230.480.Treatment of gains in form of franked distribution etc.
230.481.Registered emissions units

Subdivision 230-I--Other provisions

230.485.Effect of change of residence--rules for particular methods
230.490.Effect of change of residence--disposal and reacquisition etc. after ceasing to be Australian resident where no further recognised gains or losses from arrangement
230.495.Effect of change of accounting principles or standards
230.500.Comparable foreign accounting and auditing standards
230.505.Financial arrangement as consideration for provision or acquisition of a thing
230.510.Non-arm's length dealings in relation to financial arrangement
230.515.Arm's length dealings in relation to financial arrangement--adjustment to gain or loss in certain situations
230.520.Disregard gains or losses covered by value shifting regime
230.522.Adjusting a gain or loss that gives rise to a hybrid mismatch
230.525.Consolidated financial reports
230.527.Elections--reporting documents of foreign ADIs

Subdivision 230-J--Additional operation of Division

230.530.Additional operation of Division

Division 235--Particular financial transactions

235.1. What this Division is about

Subdivision 235-I--Instalment trusts

235.805.What this Subdivision is about
235.810.Object of this Subdivision
235.815.Application of Subdivision
235.820.Look-through treatment for instalment trusts
235.825.Meaning of instalment trust and instalment trust asset
235.830.What trusts are covered--instalment trust arrangements
235.835.Requirement for underlying investments to be listed or widely held
235.840.What trusts are covered--limited recourse borrowings by regulated superannuation funds
235.845.Interactions with other provisions

Division 240--Arrangements treated as a sale and loan

240.1. What this Division is about
240.3. How the recharacterisation affects the notional seller
240.7. How the recharacterisation affects the notional buyer

Subdivision 240-A--Application and scope of Division

240.10. Application of this Division
240.15. Scope of Division

Subdivision 240-B--The notional sale and notional loan

240.17. Who is the notional seller and the notional buyer?
240.20. Notional sale of property by notional seller and notional acquisition of property by notional buyer
240.25. Notional loan by notional seller to notional buyer

Subdivision 240-C--Amounts to be included in notional seller's assessable income

240.30. What this Subdivision is about
240.35. Amounts to be included in notional seller's assessable income
240.40. Arrangement payments not to be included in notional seller's assessable income

Subdivision 240-D--Deductions allowable to notional buyer

240.45. What this Subdivision is about
240.50. Extent to which deductions are allowable to notional buyer
240.55. Arrangement payments not to be deductions

Subdivision 240-E--Notional interest and arrangement payments

240.60. Notional interest
240.65. Arrangement payments
240.70. Arrangement payment periods

Subdivision 240-F--The end of the arrangement

240.75. When is the end of the arrangement?
240.80. What happens if the arrangement is extended or renewed
240.85. What happens if an amount is paid by or on behalf of the notional buyer to acquire the property
240.90. What happens if the notional buyer ceases to have the right to use the property

Subdivision 240-G--Adjustments if total amount assessed to notional seller differs from amount of interest

240.100.What this Subdivision is about
240.105.Adjustments for notional seller
240.110.Adjustments for notional buyer

Subdivision 240-H--Application of Division 16E to certain arrangements

240.112.Division 16E applies to certain arrangements

Subdivision 240-I--Provisions applying to hire purchase agreements

240.115.Another person, or no person taken to own property in certain cases

Division 242--Leases of luxury cars

242.1. What this Division is about

Subdivision 242-A--Notional sale and loan

242.5. What this Subdivision is about
242.10. Application
242.15. Notional sale and acquisition
242.20. Consideration for notional sale, and cost, of car
242.25. Notional loan by lessor to lessee

Subdivision 242-B--Amount to be included in lessor's assessable income

242.30. What this Subdivision is about
242.35. Amount to be included in lessor's assessable income
242.40. Treatment of lease payments

Subdivision 242-C--Deductions allowable to lessee

242.45. What this Subdivision is about
242.50. Extent to which deductions are allowable to lessee
242.55. Lease payments not deductible

Subdivision 242-D--Adjustments if total amount assessed to lessor differs from amount of interest

242.60. What this Subdivision is about
242.65. Adjustments for lessor
242.70. Adjustments for lessee

Subdivision 242-E--Extension, renewal and final ending of the lease

242.75. What this Subdivision is about
242.80. What happens if the term of the lease is extended or the lease is renewed
242.85. What happens if an amount is paid by the lessee to acquire the car
242.90. What happens if the lessee stops having the right to use the car

Division 243--Limited recourse debt

243.10. What this Division is about

Subdivision 243-A--Circumstances in which Division operates

243.15. When does this Division apply?
243.20. What is limited recourse debt?
243.25. When is a debt arrangement terminated?
243.30. What is the financed property and the debt property?

Subdivision 243-B--Working out the excessive deductions

243.35. Working out the excessive deductions

Subdivision 243-C--Amounts included in assessable income and deductions

243.40. Amount included in debtor's assessable income
243.45. Deduction for later payments in respect of debt
243.50. Deduction for payments for replacement debt
243.55. Effect of Division on later capital allowance deductions
243.57. Effect of Division on later capital allowance balancing adjustments
243.58. Adjustment where debt only partially used for expenditure

Subdivision 243-D--Special provisions

243.60. Application of Division to partnerships
243.65. Application where partner reduces liability
243.70. Application of Division to companies ceasing to be 100% subsidiary
243.75. Application of Division where debt forgiveness rules also apply

Division 245--Forgiveness of commercial debts

245.1. What this Division is about
245.2. Simplified outline of this Division

Subdivision 245-A--Debts to which operative rules apply

245.5. What this Subdivision is about
245.10. Commercial debts
245.15. Non-equity shares
245.20. Parts of debts

Subdivision 245-B--What constitutes forgiveness of a debt

245.30. What this Subdivision is about
245.35. What constitutes forgiveness of a debt
245.36. What constitutes forgiveness of a debt if the debt is assigned
245.37. What constitutes forgiveness of a debt if a subscription for shares enables payment of the debt
245.40. Forgivenesses to which operative rules do not apply
245.45. Application of operative rules if forgiveness involves an arrangement

Subdivision 245-C--Calculation of gross forgiven amount of a debt

245.48. What this Subdivision is about
245.50. Extent of forgiveness if consideration is given
245.55. General rule for working out the value of a debt
245.60. Special rule for working out the value of a non-recourse debt
245.61. Special rule for working out the value of a previously assigned debt
245.65. Amount offset against amount of debt
245.75. Gross forgiven amount of a debt
245.77. Gross forgiven amount shared between debtors

Subdivision 245-D--Calculation of net forgiven amount of a debt

245.80. What this Subdivision is about
245.85. Reduction of gross forgiven amount
245.90. Agreement between companies under common ownership for creditor to forgo capital loss or deduction

Subdivision 245-E--Application of net forgiven amounts

245.95. What this Subdivision is about
245.100.Subdivision not to apply to calculation of attributable income
245.105.How total net forgiven amount is applied
245.115.Total net forgiven amount is applied in reduction of tax losses
245.120.Allocation of total net forgiven amount in respect of tax losses
245.130.Remaining total net forgiven amount is applied in reduction of net capital losses
245.135.Allocation of remaining total net forgiven amount in respect of net capital losses
245.145.Remaining total net forgiven amount is applied in reduction of expenditure
245.150.Allocation of remaining total net forgiven amount in respect of expenditures
245.155.How expenditure is reduced--straight line deductions
245.157.How expenditure is reduced--diminishing balance deductions
245.160.Amount applied in reduction of expenditure included in assessable income in certain circumstances
245.175.Remaining total net forgiven amount is applied in reduction of cost bases of CGT assets
245.180.Allocation of remaining total net forgiven amount among relevant cost bases of CGT assets
245.185.Relevant cost bases of investments in associated entities are reduced last
245.190.Reduction of the relevant cost bases of a CGT asset
245.195.No further consequences if there is any remaining unapplied total net forgiven amount

Subdivision 245-F--Special rules relating to partnerships

245.200.What this Subdivision is about
245.215.Unapplied total net forgiven amount of a partnership is transferred to partners

Subdivision 245-G--Record keeping

245.265.Keeping and retaining records

Division 247--Capital protected borrowings

247.1. What this Division is about
247.5. Object of Division
247.10. What capital protected borrowing and capital protection are
247.15. Application of this Division
247.20. Treating capital protection as a put option
247.25. Number of put options
247.30. Exercise or expiry of option

Division 250--Assets put to tax preferred use

250.1. What this Division is about

Subdivision 250-A--Objects

250.5. Main objects

Subdivision 250-B--When this Division applies to you and an asset

250.10. When this Division applies to you and an asset
250.15. General test
250.20. First exclusion--small business entities
250.25. Second exclusion--financial benefits under minimum value limit
250.30. Third exclusion--certain short term or low value arrangements
250.35. Exceptions to section 250-30
250.40. Fourth exclusion--sum of present values of financial benefits less than amount otherwise assessable
250.45. Fifth exclusion--Commissioner determination
250.50. End user of an asset
250.55. Tax preferred end user
250.60. Tax preferred use of an asset
250.65. Arrangement period for tax preferred use
250.70. New tax preferred use at end of arrangement period if tax preferred use continues
250.75. What constitutes a separate asset for the purposes of this Division
250.80. Treatment of particular arrangements in the same way as leases
250.85. Financial benefits in relation to tax preferred use of an asset
250.90. Financial benefit provided directly or indirectly
250.95. Expected financial benefits in relation to an asset put to tax preferred use
250.100.Present value of financial benefit that has already been provided
250.105.Discount rate to be used in working out present values
250.110.Predominant economic interest
250.115.Limited recourse debt test
250.120.Right to acquire asset test
250.125.Effectively non-cancellable, long term arrangement test
250.130.Meaning of effectively non-cancellable arrangement
250.135.Level of expected financial benefits test
250.140.When to retest predominant economic interest under section 250-135

Subdivision 250-C--Denial of, or reduction in, capital allowance deductions

250.145.Denial of capital allowance deductions
250.150.Apportionment rule

Subdivision 250-D--Deemed loan treatment of financial benefits provided for tax preferred use

250.155.Arrangement treated as loan
250.160.Financial benefits that are subject to deemed loan treatment
250.180.End value of asset
250.185.Financial benefits subject to deemed loan treatment not assessed

Subdivision 250-E--Taxation of deemed loan

250.190.What this Subdivision is about
250.195.Application of Subdivision
250.200.Objects of this Subdivision
250.205.Gains are assessable and losses deductible
250.210.Gain or loss to be taken into account only once under this Act
250.215.Methods for taking gain or loss into account
250.220.Consistency in working out gains or losses (integrity measure)
250.225.Rights and obligations include contingent rights and obligations
250.230.Application of accruals method
250.235.Overview of the accruals method
250.240.Applying accruals method to work out period over which gain or loss is to be spread
250.245.How gain or loss is spread
250.250.Allocating gain or loss to income years
250.255.When to re-estimate
250.260.Re-estimation if balancing adjustment on partial disposal
250.265.When balancing adjustment made
250.270.Exception for subsidiary member leaving consolidated group
250.275.Balancing adjustment
250.280.Financial arrangement received or provided as consideration

Subdivision 250-F--Treatment of asset when Division ceases to apply to the asset

250.285.Treatment of asset after Division ceases to apply to the asset
250.290.Balancing adjustment under Subdivision 40-D in some circumstances

Subdivision 250-G--Objections against determinations and decisions by the Commissioner

250.295.Objections against determinations and decisions by the Commissioner

Division 253--Financial claims scheme for account-holders with insolvent ADIs

Subdivision 253-A--Tax treatment of entitlements under financial claims scheme

253.1. What this Subdivision is about
253.5. Payment of entitlement under financial claims scheme treated as payment from ADI
253.10. Disposal of rights against ADI to APRA and meeting of financial claims scheme entitlement have no CGT effects
253.15. Cost base of financial claims scheme entitlement and any remaining part of account that gave rise to entitlement

CHAPTER 3--Specialist liability rules

PART 3-25----PARTICULAR KINDS OF TRUSTS

Division 275--Australian managed investment trusts

275.1. What this Division is about

Subdivision 275-A--Meaning of managed investment trust

275.5. What this Subdivision is about
275.10. Meaning of managed investment trust
275.15. Trusts with wholesale membership
275.20. Widely-held requirements--ordinary case
275.25. Widely-held requirements for registered MIT--special case for entities covered by subsection 275-20(4)
275.30. Closely-held restrictions
275.35. Licensing requirements for unregistered MIS
275.40. MIT participation interest
275.45. Meaning of managed investment trust--every member of trust is a managed investment trust etc.
275.50. Extended definition of managed investment trust--no fund payment made in relation to the income year
275.55. Extended definition of managed investment trust--temporary circumstances outside the control of the trustee

Subdivision 275-B--Choice for capital treatment of managed investment trust gains and losses

275.100.Consequences of making choice--CGT to be primary code for calculating MIT gains or losses
275.105.Covered assets
275.110.MIT not to be trading trust
275.115.MIT CGT choices
275.120.Consequences of not making choice--revenue account treatment

Subdivision 275-C--Carried interests in managed investment trusts

275.200.Gains and losses etc. from carried interests in managed investment trusts reflected in assessable income or deduction

Subdivision 275-L--Modification for non-arm's length income

275.600.What this Subdivision is about
275.605.Trustee taxed on amount of non-arm's length income of managed investment trust
275.610.Non-arm's length income
275.615.Commissioner's determination in relation to amount of non-arm's length income

Division 276--Australian managed investment trusts

276.1. What this Division is about

Subdivision 276-A--What is an attribution managed investment trust

276.5. What this Subdivision is about
276.10. Meaning of attribution managed investment trust (or AMIT)
276.15. Clearly defined interests
276.20. Trust with classes of membership interests--each class treated as separate AMIT

Subdivision 276-B--Member's vested and indefeasible interest in share of income and capital of AMIT

276.50. What this Subdivision is about
276.55. AMIT taken to be fixed trust and member taken to have vested and indefeasible interest in income and capital

Subdivision 276-C--Taxation etc

276.75. What this Subdivision is about
276.80. Member's assessable income or tax offsets for determined member components--general rules
276.85. Member's assessable income or tax offsets for determined member components--specific rules
276.90. Commissioner's determination as to status of member as qualified person
276.95. Relationship between section 276-80 and withholding rules
276.100. Relationship between section 276-80 and other charging provisions in this Act
276.105.Trustee taxed on foreign resident's determined member components
276.110.Refundable tax offset for foreign resident member--member that is not a trustee
276.115.Custodian interposed between AMIT and member

Subdivision 276-D--Member components

276.200.What this Subdivision is about
276.205.Meaning of determined member component
276.210.Meaning of member component

Subdivision 276-E--Trust components

276.250.What this Subdivision is about
276.255.Meaning of determined trust component
276.260.Meaning of trust component
276.265.Rules for working out trust components--general rules
276.270. Rules for working out trust components--allocation of deductions

Subdivision 276-F--Unders and overs

276.300.What this Subdivision is about
276.305.Adjustment of trust component for unders and overs
276.310.Rounding adjustment deficit increases trust component
276.315.Rounding adjustment surplus decreases trust component
276.320.Meaning of trust component deficit
276.325.Trust component of character relating to assessable income--adjustment for cross-character allocation amount, carry-forward trust component deficit and FITO allocation amount
276.330.Meaning of cross-character allocation amount and carry-forward trust component deficit
276.335.Meaning of FITO allocation amount
276.340.Trust component character relating to tax offset--taxation of trust component deficit
276.345.Meaning of under and over of a character
276.350.Limited discovery period for unders and overs

Subdivision 276-G--Shortfall and excess taxation

276.400.What this Subdivision is about
276.405.Trustee taxed on shortfall in determined member component (character relating to assessable income)
276.410.Trustee taxed on excess in determined member component (character relating to tax offset)
276.415.Trustee taxed on amounts of determined trust component that are not reflected in determined member components
276.420.Trustee taxed on amounts of under of character relating to assessable income not properly carried forward
276.425.Trustee taxed on amounts of over of character relating to tax offset not properly carried forward
276.430.Commissioner may remit tax under this Subdivision

Subdivision 276-H--AMMA statements

276.450.What this Subdivision is about
276.455.Obligation to give an AMMA statement
276.460.AMIT member annual statement (or AMMA statement)

Subdivision 276-J--Debt-like trust instruments

276.500.What this Subdivision is about
276.505.Meaning of debt-like trust instrument
276.510.Debt-like trust instruments treated as debt interests etc.
276.515.Distribution on debt-like trust instrument could be deductible in working out trust components

Subdivision 276-K--Ceasing to be an AMIT

276.800.What this Subdivision is about
276.805.Application of Subdivision to former AMIT
276.810.Continue to work out trust components, unders, overs etc.
276.815.Effect of increase
276.820.Effect of decrease

PART 3-30----SUPERANNUATION

Division 280--Guide to the superannuation provisions

280.1. Effect of this Division
280.5. Overview
280.10. Contributions phase--deductibility
280.15. Contributions phase--limits on superannuation tax concessions
280.20. Investment phase
280.25. Benefits phase--different types of superannuation benefit
280.30. Benefits phase--taxation varies with age of recipient and type of benefit
280.35. Benefits phase--roll-overs
280.40. Other relevant legislative schemes

Division 285--General concepts relating to superannuation

285.5. Transfers of property

Division 290--Contributions to superannuation funds

290.1. What this Division is about

Subdivision 290-A--General rules

290.5. Non-application to roll-over superannuation benefits etc.
290.10. No deductions other than under this Division

Subdivision 290-B--Deduction of employer contributions and other employment-connected contributions

290.60. Employer contributions deductible
290.65. Application to employees etc.
290.70. Employment activity conditions
290.75. Complying fund conditions
290.80. Age related conditions
290.85. Contributions for former employees etc.
290.90. Controlling interest deductions
290.95. Amounts offset against superannuation guarantee charge
290.100.Returned contributions assessable

Subdivision 290-C--Deducting personal contributions

290.150.Personal contributions deductible
290.155.Complying superannuation fund condition
290.165.Age-related conditions
290.167.Contribution must not be a downsizer contribution
290.168.Contribution must not be a re-contribution under the first home super saver scheme
290.169.Contribution must not be a COVID-19 re-contribution
290.170.Notice of intent to deduct conditions
290.175.Deduction limited by amount specified in notice
290.180.Notice may be varied but not revoked or withdrawn

Subdivision 290-D--Tax offsets for spouse contributions

290.230.Offset for spouse contribution
290.235.Limit on amount of tax offsets
290.240.Tax file number

Division 291--Excess concessional contributions

291.1. What this Division is about

Subdivision 291-A--Object of this Division

291.5. Object of this Division

Subdivision 291-B--Excess concessional contributions

291.10. What this Subdivision is about
291.15. Excess concessional contributions--assessable income, 15% tax offset
291.20. Your excess concessional contributions for a financial year
291.25. Your concessional contributions for a financial year

Subdivision 291-C--Modifications for defined benefit interests

291.155.What this Subdivision is about
291.160.Application
291.165.Concessional contributions--special rules for defined benefit interests
291.170.Notional taxed contributions
291.175.Defined benefit interest

Subdivision 291-CA--Contributions that do not result in excess contributions

291.365.What this Subdivision is about
291.370.Contributions that do not result in excess contributions

Subdivision 291-D--Other provisions

291.460.What this Subdivision is about
291.465.Commissioner's discretion to disregard contributions etc. in relation to a financial year

Division 292--Excess non-concessional contributions

292.1. What this Division is about

Subdivision 292-A--Object of this Division

292.5. Object of this Division

Subdivision 292-B--Assessable income and tax offset

292.15. What this Subdivision is about
292.20. Amount in assessable income, and tax offset, relating to your non-concessional contributions
292.25. Amount included in assessable income
292.30. Amount of the tax offset

Subdivision 292-C--Excess non-concessional contributions tax

292.75. What this Subdivision is about
292.80. Liability for excess non-concessional contributions tax
292.85. Your excess non-concessional contributions for a financial year
292.90. Your non-concessional contributions for a financial year
292.95. Contributions arising from structured settlements or orders for personal injuries
292.100.Contribution relating to some CGT small business concessions
292.102.Downsizer contributions
292.103.COVID-19 re-contributions
292.105.CGT cap amount

Subdivision 292-E--Excess non-concessional contributions tax assessments

292.225.What this Subdivision is about
292.230.Commissioner must make an excess non-concessional contributions tax assessment
292.240.Validity of assessment
292.245.Objections

Subdivision 292-F--Amending excess non-concessional contributions tax assessments

292.300.What this Subdivision is about
292.305.Amendments within 4 years of the original assessment
292.310.Amended assessments are treated as excess non-concessional contributions tax assessments
292.315.Later amendments--on request
292.320.Later amendments--fraud or evasion
292.325.Further amendment of an amended particular
292.330.Amendment on review etc.

Subdivision 292-G--Collection and recovery

292.380.What this Subdivision is about
292.385.Due date for payment of excess non-concessional contributions tax
292.390.General interest charge
292.395.Refunds of amounts overpaid

Subdivision 292-H--Other provisions

292.465.Commissioner's discretion to disregard contributions etc. in relation to a financial year
292.467.Direction that the value of superannuation interests is nil

Division 293--Sustaining the superannuation contribution concession

293.1. What this Division is about

Subdivision 293-A--Object of this Division

293.5. Object of this Division

Subdivision 293-B--Sustaining the superannuation contribution concession

293.10. What this Subdivision is about
293.15. Liability for tax
293.20. Your taxable contributions
293.25. Your low tax contributions
293.30. Low tax contributed amounts

Subdivision 293-C--When tax is payable

293.60. What this Subdivision is about
293.65. When tax is payable--original assessments
293.70. When tax is payable--amended assessments
293.75. General interest charge

Subdivision 293-D--Modifications for defined benefit interests

293.100.What this Subdivision is about
293.105.Low tax contributions--modification for defined benefit interests
293.115.Defined benefit contributions

Subdivision 293-E--Modifications for constitutionally protected State higher level office holders

293.140.What this Subdivision is about
293.145.Who this Subdivision applies to
293.150.Low tax contributions--modification for CPFs
293.155.High income threshold--effect of modification
293.160.Salary packaged contributions

Subdivision 293-F--Modifications for Commonwealth justices

293.185.What this Subdivision is about
293.190.Who this Subdivision applies to
293.195.Defined benefit contributions--modified treatment of contributions under the Judges' Pensions Act 1968
293.200.High income threshold--effect of modification

Subdivision 293-G--Modifications for temporary residents who depart Australia

293.225.What this Subdivision is about
293.230.Who is entitled to a refund
293.235.Amount of the refund
293.240.Entitlement to refund stops all Division 293 tax liabilities

Division 294--Transfer balance cap

294.1. What this Division is about

Subdivision 294-A--Object of this Division

294.5. Object of this Division

Subdivision 294-B--Transfer balance account

294.10. What this Subdivision is about
294.15. When you have a transfer balance account
294.20. Meaning of retirement phase recipient
294.25. Transfer balance credits
294.30. Excess transfer balance
294.35. Your transfer balance cap
294.40. Proportionally indexed transfer balance cap
294.45. Transfer balance account ends
294.50. Assumptions about income streams
294.55. Repayment of limited recourse borrowing arrangement

Subdivision 294-C--Transfer balance debits

294.75. What this Subdivision is about
294.80. Transfer balance debits
294.85. Certain events that result in reduced superannuation
294.90. Payment splits
294.95. Payment splits--no double debiting

Subdivision 294-D--Modifications for certain defined benefit income streams

294.120.What this Subdivision is about
294.125.When this Subdivision applies
294.130.Meaning of capped defined benefit income stream
294.135.Transfer balance credit--special rule for capped defined benefit income streams
294.140.Excess transfer balance--special rule for capped defined benefit income streams
294.145.Transfer balance debits--special rules for capped defined benefit income streams

Subdivision 294-E--Modifications for death benefits dependants who are children

294.170.What this Subdivision is about
294.175.When this Subdivision applies
294.180.Transfer balance account ends
294.185.Transfer balance cap--special rule for child recipient
294.190.Cap increment--child recipient just before 1 July 2017
294.195.Cap increment--child recipient on or after 1 July 2017, deceased had no transfer balance account
294.200.Cap increment--child recipient on or after 1 July 2017, deceased had transfer balance account

Subdivision 294-F--Excess transfer balance tax

294.225.What this Subdivision is about
294.230.Excess transfer balance tax
294.235.Your excess transfer balance earnings
294.240.When tax is payable--original assessments
294.245.When tax is payable--amended assessments
294.250.General interest charge

Division 295--Taxation of superannuation entities

295.1. What this Division is about

Subdivision 295-A--Provisions of general operation

295.5. Entities to which Division applies
295.10. How to work out the tax payable by superannuation entities
295.15. Division does not impose a tax on property of a State
295.20. Exempting laws ineffective
295.25. Assessments on basis of anticipated SIS Act notice
295.30. Effect of revocation etc. of SIS Act notices
295.35. Acronyms used in tables

Subdivision 295-B--Modifications of provisions of this Act

295.85. CGT to be primary code for calculating gains or losses
295.90. CGT rules for pre-30 June 1988 assets
295.95. Deductions related to contributions
295.100.Deductions for investing in PSTs and life policies
295.105.Distributions to PST unitholders

Subdivision 295-C--Contributions included

295.155.What this Subdivision is about
295.160.Contributions and payments
295.165.Exception--spouse contributions
295.170.Exception--Government co-contributions and contributions for a child
295.173.Exception--trustee contributions
295.175.Exception--payments by a member spouse
295.180.Exception--choice to exclude certain contributions
295.185.Exception--temporary residents
295.190.Personal contributions and roll-over amounts
295.195.Exclusion of personal contributions--contributions
295.197.Exclusion of personal contributions--successor funds
295.200.Transfers from foreign superannuation funds
295.205.Application of tables to RSA providers
295.210.Former constitutionally protected funds

Subdivision 295-D--Contributions excluded

295.260.Transfer of liability to investment vehicle
295.265.Application of pre-1 July 88 funding credits
295.270.Anticipated funding credits

Subdivision 295-E--Other income amounts

295.320.Other amounts included in assessable income
295.325.Previously complying funds
295.330.Previously foreign funds
295.335.Amounts excluded from assessable income

Subdivision 295-F--Exempt income

295.385.Income from assets set aside to meet current pension liabilities
295.387.Disregarded small fund assets
295.390.Income from other assets used to meet current pension liabilities
295.395.Meaning of segregated non-current assets
295.400.Income of a PST attributable to current pension liabilities
295.405.Other exempt income
295.407.Covered superannuation income streams--RSAs
295.410.Amount credited to RSA

Subdivision 295-G--Deductions

295.460.Benefits for which deductions are available
295.465.Complying funds--deductions for insurance premiums
295.470.Complying funds--deductions for future liability to pay benefits
295.475.RSA providers--deductions for insurance premiums
295.480.Meaning of whole of life policy and endowment policy
295.490.Other deductions
295.495.Amounts that cannot be deducted

Subdivision 295-H--Components of taxable income

295.545.Components of taxable income--complying superannuation funds, complying ADFs and PSTs
295.550.Meaning of non-arm's length income
295.555.Components of taxable income--RSA providers

Subdivision 295-I--No-TFN contributions

295.605.Liability for tax on no-TFN contributions income
295.610.No-TFN contributions income
295.615.Meaning of quoted (for superannuation purposes)
295.620.No reduction under Subdivision 295-D
295.625.Assessments

Subdivision 295-J--Tax offset for no-TFN contributions income

295.675.Entitlement to a tax offset
295.680.Amount of the tax offset

Division 301--Superannuation member benefits paid from complying plans etc

301.1. What this Division is about

Subdivision 301-A--Application

301.5. Division applies to superannuation member benefits paid from complying plans etc.

Subdivision 301-B--Member benefits

301.10. All superannuation benefits are tax free
301.15. Tax free status of tax free component
301.20. Superannuation lump sum--taxable component taxed at 0% up to low rate cap amount, 15% on remainder
301.25. Superannuation income stream--taxable component attracts 15% offset
301.30. Tax free status of tax free component
301.35. Superannuation lump sum--taxable component taxed at 20%
301.40. Superannuation income stream--taxable component is assessable income, 15% offset for disability benefit

Subdivision 301-C--Member benefits

301.90. Tax free component and element taxed in fund dealt with under Subdivision 301-B, but element untaxed in the fund dealt with under this Subdivision
301.95. Superannuation lump sum--element untaxed in fund taxed at 15% up to untaxed plan cap amount, top rate on remainder
301.100.Superannuation income stream--element untaxed in fund attracts 10% offset
301.105.Superannuation lump sum--element untaxed in fund taxed at 15% up to low rate cap amount, 30% up to untaxed plan cap amount, top rate on remainder
301.110.Superannuation income stream--element untaxed in fund is assessable income
301.115.Superannuation lump sum--element untaxed in fund taxed at 30% up to untaxed plan cap amount, top rate on remainder
301.120.Superannuation income stream--element untaxed in fund is assessable income
301.125.Unclaimed money payments by the Commissioner

Subdivision 301-D--Departing Australia superannuation payments

301.170.Departing Australia superannuation payments
301.175.Treatment of departing Australia superannuation benefits

Subdivision 301-E--Superannuation lump sum member benefits less than

301.225.Superannuation lump sum member benefits less than $200 are tax free

Division 302--Superannuation death benefits paid from complying plans etc

302.1. What this Division is about

Subdivision 302-A--Application

302.5. Division applies to superannuation death benefits paid from complying plans etc.
302.10. Superannuation death benefits paid to trustee of deceased estate

Subdivision 302-B--Death benefits to dependant

302.60. All of superannuation lump sum is tax free
302.65. Superannuation income stream benefits are tax free
302.70. Superannuation income stream--tax free status of tax free component
302.75. Superannuation income stream--taxable component attracts 15% offset
302.80. Treatment of element untaxed in the fund of superannuation income stream death benefit to dependant
302.85. Deceased died aged 60 or above or dependant aged 60 years or above--superannuation income stream: element untaxed in fund attracts 10% offset
302.90. Deceased died aged under 60 and dependant aged under 60--superannuation income stream: element untaxed in fund is assessable income

Subdivision 302-C--Death benefits to non-dependant

302.140.Superannuation lump sum--tax free status of tax free component
302.145.Superannuation lump sum--element taxed in the fund taxed at 15%, element untaxed in the fund taxed at 30%

Subdivision 302-D--Definitions relating to dependants

302.195.Meaning of death benefits dependant
302.200.What is an interdependency relationship?

Division 303--Superannuation benefits paid in special circumstances

303.1. What this Division is about

Subdivision 303-B--sets out special circumstances in which superannuation benefits are neither assessable income nor exempt income.

Subdivision 303-A--Modifications for defined benefit income

303.2. Effect of exceeding defined benefit income cap on assessable income
303.3. Effect of exceeding defined benefit income cap on tax offsets
303.4. Meaning of defined benefit income cap

Subdivision 303-B--Other special circumstances

303.5. Commutation of income stream if you are under 25 etc.
303.10. Superannuation lump sum member benefit paid to member having a terminal medical condition
303.15. Payments from release authorities--general
303.20. Payments from release authorities--paying debt account discharge liability for a superannuation interest

Division 304--Superannuation benefits in breach of legislative requirements etc

304.1. What this Division is about
304.5. Application
304.10. Superannuation benefits in breach of legislative requirements etc.
304.20. Excess payments from release authorities--paying debt account discharge liability for a superannuation interest

Division 305--Superannuation benefits paid from non-complying superannuation plans

305.1. What this Division is about

Subdivision 305-A--Superannuation benefits from Australian non-complying superannuation funds

305.5. Tax treatment of superannuation benefits from certain Australian non-complying superannuation funds

Subdivision 305-B--Superannuation benefits from foreign superannuation funds

305.55. Restriction to lump sums received from certain foreign superannuation funds
305.60. Lump sums tax free--foreign resident period
305.65. Lump sums tax free--Australian resident period
305.70. Lump sums received more than 6 months after Australian residency or termination of foreign employment etc.
305.75. Lump sums--applicable fund earnings
305.80. Lump sums paid into complying superannuation plans--choice

Division 306--Roll-overs etc

306.1. What this Division is about
306.5. Effect of a roll-over superannuation benefit
306.10. Roll-over superannuation benefit
306.12. Involuntary roll-over superannuation benefit
306.15. Tax on excess untaxed roll-over amounts
306.20. Effect of payment to government of unclaimed superannuation money
306.25. Payments connected with financial claims scheme to RSAs

Division 307--Key concepts relating to superannuation benefits

307.1. What this Division is about

Subdivision 307-A--Superannuation benefits generally

307.5. What is a superannuation benefit?
307.10. Payments that are not superannuation benefits
307.15. Payments for your benefit or at your direction or request

Subdivision 307-B--Superannuation lump sums and superannuation income stream benefits

307.65. Meaning of superannuation lump sum
307.70. Meaning of superannuation income stream and superannuation income stream benefit
307.75. Meaning of retirement phase superannuation income stream benefit
307.80. When a superannuation income stream is in the retirement phase

Subdivision 307-C--Components of a superannuation benefit

307.120.Components of superannuation benefit
307.125.Proportioning rule
307.130. Superannuation guarantee payment consists entirely of taxable component
307.135.Superannuation co-contribution benefit payment consists entirely of tax free component
307.140.Contributions-splitting superannuation benefit consists entirely of taxable component
307.142.Components of certain unclaimed money payments
307.145.Modification for disability benefits
307.150.Modification in respect of superannuation lump sum with element untaxed in fund

Subdivision 307-D--Superannuation interests

307.200.Regulations relating to meaning of superannuation interests
307.205.Value of superannuation interest
307.210.Tax free component of superannuation interest
307.215.Taxable component of superannuation interest
307.220.What is the contributions segment?
307.225.What is the crystallised segment?
307.230.Total superannuation balance
307.231.Limited recourse borrowing arrangements

Subdivision 307-E--Elements taxed and untaxed in the fund of the taxable component of superannuation benefit

307.275.Element taxed in the fund and element untaxed in the fund of superannuation benefits
307.280.Superannuation benefits from constitutionally protected funds etc.
307.285.Trustee can choose to convert element taxed in the fund to element untaxed in the fund
307.290.Taxed and untaxed elements of death benefit superannuation lump sums
307.295.Superannuation benefits from public sector superannuation schemes may include untaxed element
307.297.Public sector superannuation schemes--elements set by regulations
307.300. Certain unclaimed money payments

Subdivision 307-F--Low rate cap and untaxed plan cap amounts

307.345.Low rate cap amount
307.350.Untaxed plan cap amount

Subdivision 307-G--Other concepts

307.400.Meaning of service period for a superannuation lump sum

Division 310--Loss relief for merging superannuation funds

310.1. What this Division is about

Subdivision 310-A--Object of this Division

310.5. Object

Subdivision 310-B--Choice to transfer losses

310.10. Original fund's assets extend beyond life insurance policies and units in pooled superannuation trusts
310.15. Original fund's assets include a complying superannuation life insurance policy
310.20. Original fund's assets include units in a pooled superannuation trust

Subdivision 310-C--Consequences of choosing to transfer losses

310.25. Who losses can be transferred to
310.30. Losses that can be transferred
310.35. Effect of transferring a net capital loss
310.40. Effect of transferring a tax loss

Subdivision 310-D--Choice for assets roll-over

310.45. Choosing the assets roll-over
310.50. Choosing the form of the assets roll-over

Subdivision 310-E--Consequences of choosing assets roll-over

310.55. CGT assets--if global asset approach chosen
310.60. CGT assets--individual asset approach
310.65. Revenue assets--if global asset approach chosen
310.70. Revenue assets--individual asset approach
310.75. Further consequences for roll-overs involving life insurance companies

Subdivision 310-F--Choices

310.85. Choices

Division 312--Trans-Tasman portability of retirement savings

312.1. What this Division is about

Subdivision 312-A--Preliminary

312.5. Division implements Arrangement with New Zealand

Subdivision 312-B--Amounts contributed to complying superannuation funds from KiwiSaver schemes

312.10. Amounts contributed to complying superannuation funds from KiwiSaver schemes

Subdivision 312-C--Superannuation benefits paid to KiwiSaver scheme providers

312.15. Superannuation benefits paid from complying superannuation funds to KiwiSaver schemes
312.20. Superannuation benefits paid by Commissioner to KiwiSaver schemes

Division 313--First home super saver scheme

313.1. What this Division is about

Subdivision 313-A--Preliminary

313.5. Object of this Division
313.10. Application of this Division

Subdivision 313-B--Assessable income and tax offset

313.15. What this Subdivision is about
313.20. Amount included in assessable income
313.25. Amount of the tax offset

Subdivision 313-C--Purchasing or constructing a residential premises

313.30. What this Subdivision is about
313.35. Purchasing or constructing a residential premises
313.40. Notifying Commissioner

Subdivision 313-D--Contributing amounts to superannuation

313.45. What this Subdivision is about
313.50. Contributing amounts to superannuation

Subdivision 313-E--First home super saver tax

313.55. What this Subdivision is about
313.60. First home super saver tax
313.65. When tax is payable--original assessments
313.70. When tax is payable--amended assessments
313.75. General interest charge

Subdivision 313-F--Review of decisions

313.80. What this Subdivision is about
313.85. Review rights for decisions made under this Division

CHAPTER 3--Specialist liability rules

PART 3-32----CO-OPERATIVES AND MUTUAL ENTITIES

Division 315--Demutualisation of private health insurers

315.1. What this Division is about

Subdivision 315-A--Capital gains and losses connected with a demutualisation of a private health insurer to be disregarded

315.5. Policy holders to disregard capital gains and losses related to demutualisation of private health insurer
315.10. Effect on the legal personal representative or beneficiary
315.15. Demutualisations to which this Division applies
315.20. What assets are covered
315.25. Demutualising health insurers to disregard capital gains and losses related to demutualisation
315.30. Other entities to disregard capital gains and losses related to demutualisation

Subdivision 315-B--Cost base of certain shares and rights in private health insurers

315.80. Cost base and acquisition time of demutualisation assets
315.85. Demutualisation asset
315.90. Participating policy holders

Subdivision 315-C--Lost policy holders trust

315.140.Lost policy holders trust
315.145.CGT treatment of demutualisation assets in lost policy holders trust
315.150.Roll-over where assets transferred to lost policy holder
315.155.Trustee assessed if assets dealt with not for benefit of lost policy holder
315.160.Subdivision 126-E does not apply to lost policy holders trust

Subdivision 315-D--Special cost base rules for certain shares and rights in holding companies

315.210.Cost base for shares and rights in certain holding companies

Subdivision 315-E--Special CGT rule for legal personal representatives and beneficiaries

315.260.Special CGT rule for legal personal representatives and beneficiaries

Subdivision 315-F--Non-CGT consequences of demutualisation

315.310.General taxation consequences of issue of demutualisation assets etc.

Division 316--Demutualisation of friendly society health or life insurers

316.1. What this Division is about

Subdivision 316-A--Application

316.5. Application of this Division

Subdivision 316-B--Capital gains and losses connected with the demutualisation

316.50. What this Subdivision is about
316.55. Disregarding capital gains and losses, except some involving receipt of money
316.60. Taking account of some capital gains and losses involving receipt of money
316.65. Valuation factor for sections 316-60, 316-105 and 316-165
316.70. Value of the friendly society
316.75. Disregarding friendly society's capital gains and losses
316.80. Disregarding other entities' capital gains and losses

Subdivision 316-C--Cost base of shares and rights issued under the demutualisation

316.100.What this Subdivision is about
316.105.Cost base and time of acquisition of shares and certain rights issued under demutualisation
316.110.Demutualisation assets
316.115.Entities to which section 316-105 applies

Subdivision 316-D--Lost policy holders trust

316.150.What this Subdivision is about
316.155.Lost policy holders trust
316.160.Disregarding beneficiaries' capital gains and losses, except some involving receipt of money
316.165.Taking account of some capital gains and losses involving receipt of money by beneficiaries
316.170.Roll-over where shares or rights to acquire shares transferred to beneficiary of lost policy holders trust
316.175.Trustee assessed if shares or rights dealt with not for benefit of beneficiary of lost policy holders trust
316.180.Subdivision 126-E does not apply

Subdivision 316-E--Special CGT rules for legal personal representatives and beneficiaries

316.200.Demutualisation assets not owned by deceased but passing to beneficiary in deceased estate
316.205.Interest in lost policy holders trust not owned by deceased but passing to beneficiary in deceased estate

Subdivision 316-F--Non-CGT consequences of the demutualisation

316.250.What this Subdivision is about
316.255.General taxation consequences of issue of demutualisation assets etc.
316.260.Franking debits to stop the friendly society and its subsidiaries having franking surpluses
316.265.Franking debits to negate franking credits from some distributions to friendly society and subsidiaries
316.270.Franking debits to negate franking credits from post-demutualisation payments of pre-demutualisation tax
316.275.Franking credits to negate franking debits from refunds of tax paid before demutualisation

PART 3-35----INSURANCE BUSINESS

Division 320--Life insurance companies

320.1. What this Division is about

Subdivision 320-A--Preliminary

320.5. Object of Division

Subdivision 320-B--What is included in a life insurance company's assessable income

320.10. What this Subdivision is about
320.15. Assessable income--various amounts
320.30. Assessable income--special provision for certain income years
320.35. Exempt income
320.37. Non-assessable non-exempt income
320.45. Tax treatment of gains or losses from CGT events in relation to complying superannuation assets

Subdivision 320-C--Deductions and capital losses

320.50. What this Subdivision is about
320.55. Deduction for life insurance premiums where liabilities under life insurance policies are to be discharged from complying superannuation assets
320.60. Deduction for life insurance premiums where liabilities under life insurance policies are to be discharged from segregated exempt assets
320.65. Deduction for life insurance premiums in respect of life insurance policies that provide for participating or discretionary benefits
320.70. No deduction for life insurance premiums in respect of certain life insurance policies payable only on death or disability
320.75. Deduction for ordinary investment policies
320.80. Deduction for certain claims paid under life insurance policies
320.85. Deduction for increase in value of liabilities under net risk components of life insurance policies
320.87. Deduction for assets transferred from or to complying superannuation asset pool
320.100.Deduction for life insurance premiums paid under certain contracts of reinsurance
320.105.Deduction for assets transferred to segregated exempt assets
320.110.Deduction for interest credited to income bonds
320.111.Deduction for funeral policy payout
320.112.Deduction for scholarship plan payout
320.115.No deduction for amounts credited to RSAs
320.120.Capital losses from assets other than complying superannuation assets or segregated exempt assets
320.125.Capital losses from complying superannuation assets

Subdivision 320-D--Income tax, taxable income and tax loss of life insurance companies

320.130.What this Subdivision is about
320.131.Overview of Subdivision
320.133.Object of Subdivision
320.134.Income tax of a life insurance company
320.135.Taxable income and tax loss of each of the 2 classes
320.137.Taxable income--complying superannuation class
320.139.Taxable income--ordinary class
320.141.Tax loss--complying superannuation class
320.143.Tax loss--ordinary class
320.149.Provisions that apply only in relation to the ordinary class

Subdivision 320-E--No-TFN contributions of life insurance companies that are RSA providers

320.150.What this Subdivision is about
320.155.Subdivisions 295-I and 295-J apply to companies that are RSA providers

Subdivision 320-F--Complying superannuation asset pool

320.165.What this Subdivision is about
320.170.Establishment of complying superannuation asset pool
320.175.Valuations of complying superannuation assets and complying superannuation liabilities for each valuation time
320.180.Consequences of a valuation under section 320-175
320.185.Transfer of assets to complying superannuation asset pool otherwise than as a result of a valuation under section 320-175
320.190.Complying superannuation liabilities
320.195.Transfer of assets and payment of amounts from a complying superannuation asset pool otherwise than as a result of a valuation under section 320-175
320.200.Consequences of transfer of assets to or from complying superannuation asset pool

Subdivision 320-H--Segregation of assets to discharge exempt life insurance policy liabilities

320.220.What this Subdivision is about
320.225.Segregation of assets for purpose of discharging exempt life insurance policy liabilities
320.230.Valuations of segregated exempt assets and exempt life insurance policy liabilities for each valuation time
320.235.Consequences of a valuation under section 320-230
320.240.Transfer of assets to segregated exempt assets otherwise than as a result of a valuation under section 320-230
320.245.Exempt life insurance policy liabilities
320.246.Exempt life insurance policy
320.247.Policy split into an exempt life insurance policy and another life insurance policy
320.250.Transfer of assets and payment of amounts from segregated exempt assets otherwise than as a result of a valuation under section 320-230
320.255.Consequences of transfer of assets to or from segregated exempt assets

Subdivision 320-I--Transfers of business

320.300.What this Subdivision is about
320.305.When this Subdivision applies
320.310.Special deductions and amounts of assessable income
320.315.Complying superannuation asset pool and segregated exempt assets
320.320.Certain amounts treated as life insurance premiums
320.325.Friendly societies
320.330.Immediate annuities
320.335.Parts of assets treated as separate assets
320.340.Continuous disability policies
320.345.Exemption of management fees

Division 321--General insurance companies and companies that self-insure in respect of workers' compensation liabilities

Subdivision 321-A--Provision for, and payment of, claims by general insurance companies

321.10. Assessable income to include amount for reduction in outstanding claims liability
321.15. Deduction for increase in outstanding claims liability
321.20. How value of outstanding claims liability is worked out
321.25. Deduction for claims paid during current year

Subdivision 321-B--Premium income of general insurance companies

321.45. Assessable income to include gross premiums
321.50. Assessable income to include amount for reduction in value of unearned premium reserve
321.55. Deduction for increase in value of unearned premium reserve
321.60. How value of unearned premium reserve is worked out

Subdivision 321-C--Companies that self-insure in respect of workers' compensation liabilities

321.80. Assessable income to include amount for reduction in outstanding claims liability
321.85. Deduction for outstanding claims liability
321.90. How value of outstanding claims liability is worked out
321.95. Deductions for claims paid during current year

Division 322--Assistance for policyholders with insolvent general insurers

322.1. What this Division is about

Subdivision 322-A--HIH rescue package

322.5. Rescue payments treated as insurance payments by HIH
322.10. HIH Trust exempt from tax
322.15. Certain capital gains and capital losses disregarded

Subdivision 322-B--Tax treatment of entitlements under financial claims scheme

322.20. What this Subdivision is about
322.25. Payment of entitlement under financial claims scheme treated as payment from insurer
322.30. Disposal of rights against insurer to APRA and meeting of financial claims scheme entitlement have no CGT effects

PART 3-45----RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS

Division 328--Small business entities

328.5. What this Division is about
328.10. Concessions available to small business entities

Subdivision 328-B--Objects of this Division

328.50. Objects of this Division

Subdivision 328-C--What is a small business entity

328.105.What this Subdivision is about
328.110.Meaning of small business entity
328.115.Meaning of aggregated turnover
328.120.Meaning of annual turnover
328.125.Meaning of connected with an entity
328.130.Meaning of affiliate

Subdivision 328-D--Capital allowances for small business entities

328.170.What this Subdivision is about
328.175.Calculations for depreciating assets
328.180.Assets costing less than $1,000
328.185.Pooling
328.190.Calculation
328.195.Opening pool balance
328.200.Closing pool balance
328.205.Estimate of taxable use
328.210.Low pool value
328.215.Disposal etc. of depreciating assets
328.220.What happens if you are not a small business entity or do not choose to use this Subdivision for an income year
328.225.Change in business use
328.230.Estimate where deduction denied
328.235.Interaction with Divisions 85 and 86
328.243.Roll-over relief
328.245.Consequences of roll-over
328.247.Pool deductions
328.250.Deductions for assets first used in BAE year
328.253.Deductions for cost addition amounts
328.255.Closing pool balance etc. below zero
328.257.Taxable use

Subdivision 328-E--Trading stock for

328.280.What this Subdivision is about
328.285.Trading stock for small and medium business entities
328.295.Value of trading stock on hand

Subdivision 328-F--Small business income tax offset

328.350.What this Subdivision is about
328.355.Entitlement to the small business income tax offset
328.357.Special meaning of small business entity for the purposes of this Subdivision--$5 million turnover threshold
328.360.Amount of your tax offset
328.365.Net small business income
328.370.Relevant attributable deductions
328.375.Modification if you are under 18 years old

Subdivision 328-G--Restructures of small businesses

328.420.What this Subdivision is about
328.425.Object of this Subdivision
328.430.When a roll-over is available
328.435.Genuine restructures--safe harbour rule
328.440. Ultimate economic ownership--discretionary trusts
328.445.Residency requirement
328.450.Small business transfers not to affect income tax positions
328.455.Effect of small business restructures on transferred cost of assets
328.460.Effect of small business restructures on acquisition times of pre-CGT assets
328.465.New membership interests as consideration for transfer of assets
328.470.Membership interests affected by transfers of assets
328.475.Small business restructures involving assets already subject to small business roll-over

Division 355--Research and Development

355.1. What this Division is about

Subdivision 355-A--Object

355.5. Object

Subdivision 355-B--Meaning of R&D activities and other terms

355.20. R&D activities
355.25. Core R&D activities
355.30. Supporting R&D activities
355.35. R&D entities

Subdivision 355-C--Entitlement to tax offset

355.100.Entitlement to tax offset
355.105.Deductions under this Division are notional only
355.110.Notional deductions include prepaid expenditure
355.115.Working out an R&D entity's total expenses

Subdivision 355-D--Notional deductions for R&D expenditure

355.200.What this Subdivision is about
355.205.When notional deductions for R&D expenditure arise
355.210.Conditions for R&D activities
355.215.R&D activities conducted by a permanent establishment for other parts of the body corporate
355.220.R&D activities conducted for a foreign entity
355.225.Expenditure that cannot be notionally deducted

Subdivision 355-E--Notional deductions etc

355.300.What this Subdivision is about
355.305.When notional deductions for decline in value arise
355.310.Notional application of Division 40
355.315.Balancing adjustments--assets only used for R&D activities

Subdivision 355-F--Integrity Rules

355.400.Expenditure incurred while not at arm's length
355.405.Expenditure not at risk
355.410.Disposal of R&D results
355.415.Reducing deductions to reflect mark-ups within groups

Subdivision 355-G--Clawback of R&D recoupments, feedstock adjustments and balancing adjustments

355.430.What this Subdivision is about
355.435.When this Subdivision applies
355.440.R&D recoupments
355.445.Feedstock adjustments
355.446.Balancing adjustments for assets only used for R&D activities
355.447.Balancing adjustments for assets partially used for R&D activities
355.448.Balancing adjustments for R&D partnership assets only used for R&D activities
355.449.Balancing adjustments for R&D partnership assets partially used for R&D activities
355.450.Amount to be included in assessable income

Subdivision 355-H--Catch up deductions for balancing adjustment events for assets used for R&D activities

355.455.What this Subdivision is about
355.460.When this Subdivision applies
355.465.Assets only used for R&D activities
355.466.Assets partially used for R&D activities
355.467.R&D partnership assets only used for R&D activities
355.468.R&D partnership assets partially used for R&D activities
355.475.Amount that can be deducted

Subdivision 355-I--Application to earlier income year R&D expenditure incurred to associates

355.480.Notional deductions for expenditure incurred to associate in earlier income years

Subdivision 355-J--Application to R&D partnerships

355.500.What this Subdivision is about
355.505.Meaning of R&D partnership and partner's proportion
355.510.R&D partnership expenditure on R&D activities
355.515.R&D activities conducted by or for an R&D partnership
355.520.When notional deductions arise for decline in value of depreciating assets of R&D partnerships
355.525.Balancing adjustments for R&D partnership assets only used for R&D activities
355.530.Implications for partner's aggregated turnover
355.535.Disposal of R&D results for R&D partnerships
355.540.Application of recoupment rules
355.545. Relevance for net income, and losses, of the R&D partnership

Subdivision 355-K--Application to Cooperative Research Centres

355.580.When notional deductions for CRC contributions arise

Subdivision 355-W--Other matters

355.705.Effect of findings by Industry Innovation and Science Australia
355.710.Amendment of assessments
355.715.Implications for other deductions and tax offsets

Division 360--Early stage investors in innovation companies

Subdivision 360-A--Tax incentives for early stage investors in innovation companies

360.5. What this Subdivision is about
360.10. Object of this Subdivision
360.15. Entitlement to the tax offset
360.20. Limited entitlement for certain kinds of investors
360.25. Amount of the tax offset--general case
360.30. Amount of the tax offset--members of trusts or partnerships
360.35. Amount of the tax offset--trustees
360.40. Early stage innovation companies
360.45. 100 point innovation test
360.50. Modified CGT treatment
360.55. Modified CGT treatment--partnerships
360.60. Modified CGT treatment--not affected by certain roll-overs
360.65. Separate modified CGT treatment for roll-overs about wholly-owned companies or scrip for scrip roll-overs

Division 376--Films generally (tax offsets for Australian production expenditure)

Subdivision 376-A--Guide to Division 376

376.1. What this Division is about
376.2. Key features of the tax offsets for Australian production expenditure on films
376.5. Structure of this Division

Subdivision 376-B--Tax offsets for Australian expenditure in making a film

376.10. Film production company entitled to refundable tax offset for Australian expenditure in making a film (location offset)
376.15. Amount of the location offset
376.20. Minister must issue certificate for a film for the location offset
376.25. Meaning of documentary
376.30. Minister to determine a company's qualifying Australian production expenditure for the location offset
376.35. Film production company entitled to refundable tax offset for post, digital and visual effects production for a film (PDV offset)
376.40. Amount of the PDV offset
376.45. Minister must issue certificate for a film for the PDV offset
376.50. Minister to determine a company's qualifying Australian production expenditure for the PDV offset
376.55. Film production company entitled to refundable tax offset for Australian expenditure in making an Australian film (producer offset)
376.60. Amount of the producer offset
376.65. Film authority must issue certificate for an Australian film for the producer offset
376.70. Determination of content of film
376.75. Film authority to determine a company's qualifying Australian production expenditure for the producer offset

Subdivision 376-C--Production expenditure and qualifying Australian production expenditure

376.125.Production expenditure--general test
376.130.Production expenditure--special qualifying Australian production expenditure
376.135.Production expenditure--specific exclusions
376.140.Production expenditure--special rules for the location offset
376.145.Qualifying Australian production expenditure--general test
376.150.Qualifying Australian production expenditure--specific inclusions
376.155.Qualifying Australian production expenditure--specific exclusions
376.160.Qualifying Australian production expenditure--treatment of services embodied in goods
376.165.Qualifying Australian production expenditure--special rules for the location offset and the PDV offset
376.170.Qualifying Australian production expenditure--special rules for the producer offset
376.175.Expenditure to be worked out on an arm's length basis
376.180.Expenditure incurred by prior production companies
376.185.Expenditure to be worked out excluding GST

Subdivision 376-D--Certificates for films and other matters

376.230.Production company may apply for certificate
376.235.Notice of refusal to issue certificate
376.240.Issue of certificate
376.245.Revocation of certificate
376.247.Delegation by Arts Minister
376.250.Notice of decision or determination
376.255.Review of decisions by the Administrative Appeals Tribunal
376.260.Minister may make rules about the location offset and the PDV offset
376.265.Film authority may make rules about the producer offset
376.270.Amendment of assessments
376.275.Review in relation to certain production levels

Division 380--National Rental Affordability Scheme

380.1. What this Division is about

Subdivision 380-A--National Rental Affordability Scheme Tax Offset

380.5. Claims by individuals, corporate tax entities and superannuation funds
380.10. Members of NRAS consortiums--individuals, corporate tax entities and superannuation funds
380.11. Elections by NRAS approved participants
380.12. Elections by NRAS approved participants--tax offsets
380.13. Elections by NRAS approved participants--special rule for partnerships and trustees
380.14. Members of NRAS consortiums--partnerships and trustees
380.15. Entities to whom NRAS rent flows indirectly
380.16. Elections by NRAS approved participants that are partnerships or trustees
380.17. Elections by NRAS approved participants that are partnerships or trustees--tax offsets
380.18. Elections by NRAS approved participants that are partnerships or trustees--special rule for partnerships and trustees
380.20. Trustee of a trust that does not have net income for an income year
380.25. When NRAS rent flows indirectly to or through an entity
380.30. Share of NRAS rent
380.32. Amended certificates

Subdivision 380-B--Payments made in relation to the National Rental Affordability Scheme etc

380.35. Payments made and non-cash benefits provided in relation to the National Rental Affordability Scheme

Division 385--Primary production

385.1. What this Division is about
385.5. Where to find some other rules relevant to primary producers

Subdivision 385-E--Primary producer can elect to spread or defer tax on profit from forced disposal or death of live stock

385.90. What this Subdivision is about
385.95. Basic principles for elections under this Subdivision
385.100.Cases where you can make an election
385.105.Election to spread tax profit over 5 years
385.110.Alternative election to defer tax profit and reduce cost of replacement live stock
385.115.Your assessable income includes an amount for replacement live stock you breed
385.120.Purchase price of replacement live stock is reduced
385.125.Alternative election because of bovine tuberculosis has effect over 10 years not 5

Subdivision 385-F--Insurance for loss of live stock or trees

385.130.Insurance for loss of live stock or trees

Subdivision 385-G--Double wool clips

385.135.Election to defer including profit on second wool clip

Subdivision 385-H--Rules that apply to all elections made under Subdivisions 385-E, 385-F and 385-G

385.145.Partnerships and trusts
385.150.Time for making election
385.155.Amounts are assessable income from carrying on the primary production business
385.160.Effect of certain events on election
385.163.Disentitling events
385.165.New partnership can elect to be treated as same entity as old partnership
385.170.New partnership can elect to take advantage of election made by former owner of the business

Division 392--Long-term averaging of primary producers' tax liability

392.1. What this Division is about
392.5. Overview of averaging process

Subdivision 392-A--Is your income tax affected by averaging

392.10. Individuals who carry on a primary production business
392.15. Meaning of basic taxable income
392.20. Trust beneficiaries taken to be carrying on primary production business
392.22. Trustee may choose that a beneficiary is a chosen beneficiary of the trust
392.25. Choosing not to have your income tax averaged

Subdivision 392-B--What kind of averaging adjustment must you make

392.30. What this Subdivision is about
392.35. Will you get a tax offset or have to pay extra income tax?
392.40. Identify income years for averaging your basic taxable income
392.45. Work out your average income for those years
392.50. Work out the income tax on your average income at basic rates
392.55. Work out the comparison rate

Subdivision 392-C--How big is your averaging adjustment

392.60. What this Subdivision is about
392.65. What your averaging adjustment reflects
392.70. Working out your gross averaging amount
392.75. Working out your averaging adjustment
392.80. Work out your taxable primary production income
392.85. Work out your taxable non-primary production income
392.90. Work out your averaging component

Subdivision 392-D--Effect of permanent reduction of your basic taxable income

392.95. You are treated as if you had not carried on business before

Division 393--Farm management deposits

393.1. What this Division is about

Subdivision 393-A--Tax consequences of farm management deposits

393.5. Deduction for making farm management deposit
393.10. Assessability on repayment of deposit
393.15. Transactions to which the deduction, assessment and 12 month rules have modified application
393.16. Consolidation of farm management deposits
393.17. Tax consequences of liabilities reducing because of farm management deposits

Subdivision 393-B--Meaning of farm management deposit and owner

393.20. Farm management deposits
393.25. Owners of farm management deposits
393.27. Trustee may choose that a beneficiary is a chosen beneficiary of the trust
393.28. Application of Division to beneficiary no longer under legal disability
393.30. Effect of contravening requirements
393.35. Requirements of agreement for a farm management deposit
393.37. Agreements for a farm management deposit may allow for some offsets of a depositor's liabilities
393.40. Repayment of deposit within first 12 months
393.45. Partly repaid farm management deposits

Subdivision 393-C--Special rules relating to financial claims scheme for account-holders with insolvent ADIs

393.50. What this Subdivision is about
393.55. Farm management deposits arising from farm management deposits with ADIs subject to financial claims scheme
393.60. Repayment if owner of farm management deposit with insolvent ADI dies, is bankrupt or ceases to be a primary producer

Division 394--Forestry managed investment schemes

394.1. What this Division is about
394.5. Object of this Division
394.10. Deduction for amounts paid under forestry managed investment schemes
394.15. Forestry managed investment schemes and related concepts
394.20. Payments on behalf of participant in forestry managed investment scheme
394.25. CGT event in relation to forestry interest in forestry managed investment scheme--initial participant
394.30. CGT event in relation to forestry interest in forestry managed investment scheme--subsequent participant
394.35. 70% DFE rule
394.40. Payments under forestry managed investment scheme
394.45. Direct forestry expenditure

Division 405--Above-average special professional income of authors, inventors, performing artists, production associates and sportspersons

405.1. What this Division is about
405.5. Special rate of income tax on your above-average special professional income
405.10. Overview of the Division

Subdivision 405-A--Above-average special professional income

405.15. When do you have above-average special professional income?

Subdivision 405-B--Assessable professional income

405.20. What you count as assessable professional income
405.25. Meaning of special professional, performing artist, production associate, sportsperson and sporting competition
405.30. What you cannot count as assessable professional income
405.35. Limits on counting amounts as assessable professional income
405.40. Joint author or inventor treated as sole author or inventor

Subdivision 405-C--Taxable professional income and average taxable professional income

405.45. Working out your taxable professional income
405.50. Working out your average taxable professional income

Division 410--Copyright and resale royalty collecting societies

410.1. What this Division is about

Subdivision 410-A--Notice of payments

410.5. Copyright collecting society must give notice to member of society
410.50. Resale royalty collecting society must give notice to holder of resale royalty right

Division 415--Designated infrastructure projects

415.1. What this Division is about

Subdivision 415-A--Object of this Division

415.5. Object of this Division

Subdivision 415-B--Tax losses and bad debts

415.10. What this Subdivision is about
415.15. Uplift of tax losses of designated infrastructure project entities
415.20. Designated infrastructure project entity
415.25. Tax losses of trusts
415.30. Bad debts written off etc. by trusts
415.35. Tax losses of companies
415.40. Bad debts written off by companies
415.45. Losses transferred to head companies of consolidated groups

Subdivision 415-C--Designating infrastructure projects

415.50. What this Subdivision is about
415.55. Applications for designation
415.60. Dealing with applications
415.65. Provisional designation
415.70. Designation
415.75. Infrastructure project capital expenditure cap
415.80. Acceptance of estimates of infrastructure project capital expenditure
415.85. Review of decisions
415.90. Information to be made public
415.95. Delegation
415.100.Infrastructure project designation rules

Division 417--Timor Sea petroleum

417.1. What this Division is about

Subdivision 417-A--Introduction

417.5. Object
417.10. Meaning of transitioned petroleum activities

Subdivision 417-B--Capital allowances

417.25. Deducting amounts for depreciating assets
417.30. Balancing adjustments
417.35. Allocating assets to a project pool
417.40. Deduction for expenditure on mining site rehabilitation
417.45. Capital expenditure
417.50. Transferring entitlement to deductions relating to a project pool

Subdivision 417-C--Capital gains tax

417.65. CGT events not created by Timor Sea Maritime Boundaries Treaty entering into force
417.70. Tax treatment of consideration for transferred entitlement to deductions or tax loss
417.75. Membership interests affected by transfer of entitlement to deductions or tax loss

Subdivision 417-D--Transferring or applying tax losses

417.90. Tax losses from transitioned petroleum activities
417.95. How choices are made
417.100.The effect of choosing to transfer losses
417.105.The effect of choosing to apply losses to earlier income years
417.110.Continuity of ownership and business continuity tests

Subdivision 417-E--Foreign income tax offset

417.125.Foreign income tax offset

Subdivision 417-F--Transfer pricing

417.140.Transfer pricing benefits relating to transitioned petroleum activities

Division 418--Exploration for minerals

418.1. What this Division is about

Subdivision 418-A--Object of this Division

418.5. Object of this Division

Subdivision 418-B--Junior minerals exploration incentive tax offset

418.10. Who is entitled to the tax offset--ordinary case
418.15. Who is entitled to the tax offset--life insurance company
418.20. Entitlement of member of a trust or partnership to a share of exploration credits
418.25. The amount of the tax offset
418.30. Reduced amount of the tax offset for certain trusts

Subdivision 418-C--Junior minerals exploration incentive franking credit

418.50. Junior minerals exploration incentive franking credit--ordinary case
418.55. Junior minerals exploration incentive franking credit--life insurance company

Subdivision 418-D--Creating exploration credits

418.70. Entities that may create exploration credits
418.75. Meaning of greenfields minerals explorer
418.80. Meaning of greenfields minerals expenditure
418.81. Meaning of exploration credits allocation for an income year
418.82. When does an entity have an unused allocation of exploration credits from an income year
418.85. Exploration credits must not exceed maximum exploration credit amount
418.95. Effect on tax losses of creating exploration credits

Subdivision 418-DA--Exploration credits allocation

418.100.Applying for an exploration credits allocation
418.101.Determination by the Commissioner
418.102.General allocation rules
418.103. Meaning of annual exploration cap
418.104.Failure to comply with this Subdivision does not affect allocation

Subdivision 418-E--Issuing exploration credits

418.110.Issuing exploration credits
418.111.Working out whether an exploration investment has been made in an income year
418.115.Who may receive an exploration credit and what is the pool from which the credit may be issued
418.116.Exploration credits issued must be in proportion to exploration investment
418.120.The total of all exploration credits issued in relation to exploration investment
418.125.Expiry of exploration credits
418.130.Notifying the Commissioner of issuing or expiry of exploration credits
418.135.Notifying the Commissioner if no exploration investment in income year for which credits allocated

Subdivision 418-F--Excess exploration credits

418.150.Excess exploration credit tax
418.151.Complying exploration credit amount
418.155.Due date for payment of excess exploration credit tax
418.160.Returns
418.165.When shortfall interest charge is payable
418.170.General interest charge
418.175.Refunds of amounts overpaid
418.180.Record keeping
418.185.Determining an entity not to be a greenfields minerals explorer

Subdivision 418-G--Other matters

418.190.Annual impact assessments of this Division

PART 3-50----CLIMATE CHANGE

Division 420--Registered emissions units

420.1. What this Division is about
420.5. The 4 key features of tax accounting for registered emissions units

Subdivision 420-A--Registered emissions units

420.10. Meaning of registered emissions unit
420.12. Meaning of hold a registered emissions unit

Subdivision 420-B--Acquiring registered emissions units

420.15. What you can deduct
420.20. Non-arm's length transactions and transactions with associates
420.21. Incoming international transfers of emissions units
420.22. Becoming taxable in Australia on the proceeds of sale of registered emissions units

Subdivision 420-C--Disposing of registered emissions units etc

420.25. Assessable income on disposal of registered emissions units
420.30. Non-arm's length transactions and transactions with associates
420.35. Outgoing international transfers of emissions units
420.40. Disposal of registered emissions units for a purpose other than gaining assessable income
420.41. Ceasing to be taxable in Australia on the proceeds of sale of registered emissions units
420.42. Deduction for expenses incurred in ceasing to hold a registered emissions unit

Subdivision 420-D--Accounting for registered emissions units you hold at the start or end of the income year

420.45. You include the value of your registered emissions units in working out your assessable income and deductions
420.50. Value of registered emissions units at start of income year
420.51. Valuation methods
420.52. FIFO cost method of working out the value of units
420.53. Actual cost method of working out the value of units
420.54. Market value method of working out the value of units
420.55. Valuation method for first income year at the end of which you held registered emissions units
420.57. Valuation method for later income years at the end of which you held registered emissions units
420.60. Cost of registered emissions units

Subdivision 420-E--Exclusivity of Division

420.65. Exclusivity of deductions etc.
420.70. Exclusivity of assessable income etc.

CHAPTER 3--Specialist liability rules

PART 3-80----ROLL-OVERS APPLYING TO ASSETS GENERALLY

Division 615--Roll-overs for business restructures

615.1. What this Division is about

Subdivision 615-A--Choosing to obtain roll-overs

615.5. Disposing of interests in one entity for shares in a company
615.10. Redeeming or cancelling interests in one entity for shares in a company

Subdivision 615-B--Further requirements for choosing to obtain roll-overs

615.15. Interposed company must own all the original interests
615.20. Requirements relating to your interests in the original entity
615.25. Requirements relating to the interposed company
615.30. Interposed company must make a particular choice
615.35. ADI restructures--disregard certain preference shares

Subdivision 615-C--Consequences of roll-overs

615.40. CGT consequences
615.45. Additional consequences--deferral of profit or loss
615.50. Trading stock
615.55. Revenue assets
615.60. Disregard CGT exemption for trading stock

Subdivision 615-D--Consequences for the interposed company

615.65. Consequences for the interposed company

Division 620--Assets of wound-up corporation passing to corporation with not significantly different ownership

Subdivision 620-A--Corporations covered by Subdivision 124-I

620.5. What this Subdivision is about
620.10. Application
620.15. Object
620.20. Disregard body's capital gains and losses from CGT assets
620.25. Cost base and pre-CGT status of CGT asset for company
620.30. Roll-over relief for balancing adjustment events
620.40. Body taken to have sold trading stock to company
620.50. Body taken to have sold revenue assets to company

PART 3-90----CONSOLIDATED GROUPS

Division 700--Guide and objects

700.1. What this Part is about
700.5. Overview of this Part
700.10. Objects of this Part

Division 701--Core rules

701.1. Single entity rule
701.5. Entry history rule
701.10. Cost to head company of assets of joining entity
701.15. Cost to head company of membership interests in entity that leaves group
701.20. Cost to head company of assets consisting of certain liabilities owed by entity that leaves group
701.25. Tax-neutral consequence for head company of ceasing to hold assets when entity leaves group
701.30. Where entity not subsidiary member for whole of income year
701.35. Tax-neutral consequence for entity of ceasing to hold assets when it joins group
701.40. Exit history rule
701.45. Cost of assets consisting of liabilities owed to entity by members of the group
701.50. Cost of certain membership interests of which entity becomes holder on leaving group
701.55. Setting the tax cost of an asset
701.56. Application of subsection 701-55(6)
701.58. Effect of setting the tax cost of an asset that the head company does not hold under the single entity rule
701.60. Tax cost setting amount
701.60A.Tax cost setting amount for asset emerging when entity leaves group
701.61. Assets in relation to Division 230 financial arrangement--head company's assessable income or deduction
701.63. Right to future income and WIP amount asset
701.65. Net income and losses for trusts and partnerships
701.67. Assets in this Part are CGT assets, etc.
701.70. Adjustments to taxable income where identities of parties to arrangement merge on joining group
701.75. Adjustments to taxable income where identities of parties to arrangement re-emerge on leaving group
701.80. Accelerated depreciation
701.85. Other exceptions etc. to the rules

Division 703--Consolidated groups and their members

703.1. What this Division is about
703.5. What is a consolidated group?
703.10. What is a consolidatable group?
703.15. Members of a consolidated group or consolidatable group
703.20. Certain entities that cannot be members of a consolidated group or consolidatable group
703.25. Australian residence requirements for trusts
703.30. When is one entity a wholly-owned subsidiary of another?
703.33. Transfer time for sale of shares in company
703.35. Treating entities as wholly-owned subsidiaries by disregarding employee shares
703.37. Disregarding certain preference shares following an ADI restructure
703.40. Treating entities held through non-fixed trusts as wholly-owned subsidiaries
703.45. Subsidiary members or nominees interposed between the head company and a subsidiary member of a consolidated group or a consolidatable group
703.50. Choice to consolidate a consolidatable group
703.55. Creating consolidated groups from certain MEC groups
703.58. Notice of choice to consolidate
703.60. Notice of events affecting consolidated group
703.65. Application
703.70. Consolidated group continues in existence with interposed company as head company and original entity as a subsidiary member
703.75. Interposed company treated as substituted for original entity at all times before the completion time
703.80. Effects on the original entity's tax position

Division 705--Tax cost setting amount for assets where entities become subsidiary members of consolidated groups

705.1. What this Division is about

Subdivision 705-A--Basic case

705.5. What this Subdivision is about
705.10. Application and object of this Subdivision
705.15. Cases where this Subdivision does not have effect
705.20. Tax cost setting amount worked out under this Subdivision
705.25. Tax cost setting amount for retained cost base assets
705.27. Reduction in tax cost setting amount that exceeds market value of certain retained cost base assets
705.30. What is the joining entity's terminating value for an asset?
705.35. Tax cost setting amount for reset cost base assets
705.40. Tax cost setting amount for reset cost base assets held on revenue account etc.
705.45. Reduction in tax cost setting amount for accelerated depreciation assets
705.47. Reduction in tax cost setting amount for some privatised assets
705.55. Order of application of sections 705-40, 705-45 and 705-47
705.56. Modification for tax cost setting in relation to leases
705.57. Adjustment to tax cost setting amount where loss of pre-CGT status of membership interests in joining entity
705.58. Assets and liabilities not set off against each other
705.59. Exception: treatment of linked assets and liabilities
705.60. What is the joined group's allocable cost amount for the joining entity?
705.62. No double counting of amounts in allocable cost amount
705.65. Cost of membership interests in the joining entity--step 1 in working out allocable cost amount
705.70. Liabilities of the joining entity--step 2 in working out allocable cost amount
705.75. Liabilities of the joining entity--reductions for purposes of step 2 in working out allocable cost amount
705.76. Liability arising from transfer or assignment of securitised assets
705.80. Liabilities of the joining entity--reductions/increases for purposes of step 2 in working out allocable cost amount
705.85. Liabilities of the joining entity--increases for purposes of step 2 in working out allocable cost amount
705.90. Undistributed, taxed profits accruing to joined group before joining time--step 3 in working out allocable cost amount
705.93. If pre-joining time roll-over from foreign resident company or head company--step 3A in working out allocable cost amount
705.95. Pre-joining time distributions out of certain profits--step 4 in working out allocable cost amount
705.100.Losses accruing to joined group before joining time--step 5 in working out allocable cost amount
705.105.Continuity of holding membership interests--steps 3 to 5 in working out allocable cost amount
705.110.If joining entity transfers a loss to the head company--step 6 in working out allocable cost amount
705.115.If head company becomes entitled to certain deductions--step 7 in working out allocable cost amount
705.125.Pre-CGT proportion for joining entity

Subdivision 705-B--Case of group formation

705.130.What this Subdivision is about
705.135.Application and object of this Subdivision
705.140.Subdivision 705-A has effect with modifications
705.145.Order in which tax cost setting amounts are to be worked out where subsidiary members have membership interests in other subsidiary members
705.147.Adjustment in working out step 3A of allocable cost amount to take account of membership interests held by subsidiary members in other such members
705.155.Adjustments to restrict step 4 reduction of allocable cost amount to effective distributions to head company in respect of direct membership interests
705.160.Adjustment to allocation of allocable cost amount to take account of owned profits or losses of certain entities that become subsidiary members
705.163.Modified application of section 705-57

Subdivision 705-C--Case where a consolidated group is acquired by another

705.170.What this Subdivision is about
705.175.Application and object of this Subdivision
705.180.Modifications of Division 701
705.185.Subdivision 705-A has effect with modifications
705.195.Modified application of subsection 705-65(6)
705.200.Modified application of section 705-85

Subdivision 705-D--Where multiple entities are linked by membership interests

705.210.What this Subdivision is about
705.215.Application and object of this Subdivision
705.220.Subdivision 705-A has effect with modifications
705.225.Order in which tax cost setting amounts are to be worked out where linked entities have membership interests in other linked entities
705.227.Adjustment in working out step 3A of allocable cost amount to take account of membership interests held by linked entities in other linked entities
705.230.Adjustments to restrict step 4 reduction of allocable cost amount to effective distributions to head company in respect of direct membership interests
705.235.Adjustment to allocation of allocable cost amount to take account of owned profits or losses of certain linked entities
705.240.Modified application of section 705-57

Subdivision 705-E--Adjustments for errors etc

705.300.What this Subdivision is about
705.305.Object of this Subdivision
705.310.Operation of Part IVA of the Income Tax Assessment Act 1936
705.315.Errors that attract special adjustment action
705.320.Tax cost setting amounts taken to be correct

Division 707--Losses for head companies when entities become members etc

Subdivision 707-A--Transfer of losses to head company

707.100.What this Subdivision is about
707.105.Who can utilise the loss?
707.110.Objects of this Subdivision
707.115.What losses this Subdivision applies to
707.120.Transfer of loss from joining entity to head company
707.125.Modified business continuity test for companies' post-1999 losses
707.130.Modified pattern of distributions test
707.135.Transferring loss transferred to joining entity because business continuity test was satisfied
707.140.Effect of transfer of loss
707.145.Cancelling the transfer of the loss
707.150.Loss cannot be utilised for income year ending after the joining time

Subdivision 707-B--Can a transferred loss be utilised

707.200.What this Subdivision is about
707.205.Modified period for test for maintaining same ownership
707.210.Utilisation of certain losses transferred from a company depends on company that made the losses earlier

Subdivision 707-C--Amount of transferred losses that can be utilised

707.300.What this Subdivision is about
707.305.Object of this Subdivision
707.310.How much of a transferred loss can be utilised?
707.315.What is a bundle of losses?
707.320.What is the available fraction for a bundle of losses?
707.325.Modified market value of an entity becoming a member of a consolidated group
707.330.Losses transferred from former head company
707.335.Limit on utilising transferred losses if circumstances change during income year
707.340.Utilising transferred losses while exempt income remains
707.345.Other provisions are subject to this Subdivision

Subdivision 707-D--Special rules about losses

707.400.Head company's business before and after consolidation not compared
707.410.Exit history rule does not treat entity as having made a loss
707.415.Application of losses with nil available fraction for certain purposes

Division 709--Other rules applying when entities become subsidiary members etc

Subdivision 709-A--Franking accounts

709.50. What this Subdivision is about
709.55. Object of this Subdivision
709.60. Nil balance franking account for joining entity
709.65. Subsidiary member's franking account does not operate
709.70. Credits arising in head company's franking account
709.75. Debits arising in head company's franking account
709.80. Subsidiary member's distributions on employee shares and certain preference shares taken to be distributions by the head company
709.85. Non-share distributions by subsidiary members taken to be distributions by head company
709.90. Subsidiary member's distributions to foreign resident taken to be distributions by head company
709.95. Payment of group liability by former subsidiary member
709.100.Refund of income tax to former subsidiary member

Subdivision 709-B--Imputation issues

709.150.What this Subdivision is about
709.155.Testing consolidated groups
709.160.Subsidiary member is exempting entity
709.165.Subsidiary member is former exempting entity
709.170.Head company and subsidiary are exempting entities
709.175.Head company is former exempting entity

Subdivision 709-C--Treatment of excess franking deficit tax offsets when entity becomes a subsidiary member of a consolidated group

709.180.What this Subdivision is about
709.185.Joining entity's excess franking deficit tax offsets transferred to head company
709.190.Exit history rule not to treat leaving entity as having a franking deficit tax offset excess

Subdivision 709-D--Deducting bad debts

709.200.What this Subdivision is about
709.205.Application of this Subdivision
709.210.Object of this Subdivision
709.215.Limit on deduction of bad debt
709.220.Limit on deduction of swap loss

Division 711--Tax cost setting amount for membership interests where entities cease to be subsidiary members of consolidated groups

711.1. What this Division is about
711.5. Application and object of this Division
711.10. Tax cost setting amount worked out under this Division
711.15. Tax cost setting amount where no multiple exit
711.20. What is the old group's allocable cost amount for the leaving entity?
711.25. Terminating values of the leaving entity's assets--step 1 in working out allocable cost amount
711.30. What is the head company's terminating value for an asset?
711.35. If head company becomes entitled to certain deductions--step 2 in working out allocable cost amount
711.40. Liabilities owed to the leaving entity by members of the old group--step 3 in working out allocable cost amount
711.45. Liabilities etc. owed by the leaving entity--step 4 in working out allocable cost amount
711.46. Liability arising from transfer or assignment of securitised assets
711.55. Tax cost setting amount for membership interests where multiple exit
711.65. Membership interests treated as having been acquired before 20 September 1985
711.70. Additional integrity rule if membership interests treated as having been acquired before 20 September 1985 under section 711-65--application of Division 149 to head company
711.75. Additional integrity rule if membership interests treated as having been acquired before 20 September 1985 under section 711-65--application of CGT event K6

Division 713--Rules for particular kinds of entities

Subdivision 713-A--Trusts

713.20. Increasing the step 1 amount for settled capital that could be distributed tax free in respect of discretionary interests
713.25. Undistributed, realised profits that accrue to joined group before joining time and could be distributed tax free--step 3 in working out allocable cost amount
713.50. Factors to consider

Subdivision 713-C--Some unit trusts treated like head companies of consolidated groups

713.120.What this Subdivision is about
713.125.Object of this Subdivision
713.130.Choosing to form a consolidated group
713.135.Effects of choice
713.140.Modifications of the applied law

Subdivision 713-E--Partnerships

713.200.What this Subdivision is about
713.205.Objects of this Subdivision
713.210.Partnership cost setting interests
713.215.Terminating value for partnership cost setting interest
713.220.Set tax cost of partnership cost setting interests if partner joins consolidated group
713.225.Tax cost setting amount for partnership cost setting interest
713.235.Partnership joins group--set tax cost of partnership assets
713.240.Partnership joins group--tax cost setting amount for partnership asset
713.250.Partnership leaves group--standard provisions modified
713.255.Partnership leaves group--tax cost setting amount for partnership cost setting interests
713.260.Partnership leaves group--tax cost setting amount for assets consisting of being owed certain liabilities
713.265.Partnership leaves group--adjustments to allocable cost amount of partner who also leaves group

Subdivision 713-L--Life insurance companies

713.500.What this Subdivision is about
713.505.Head company treated as a life insurance company
713.510.Certain subsidiaries of life insurance companies cannot be members of consolidated group
713.510A.Disregard single entity rule in working out certain amounts in respect of life insurance company
713.511.Treatment of certain liabilities for income year when life insurance company joins consolidated group
713.515.Certain assets taken to be retained cost base assets where life insurance company joins group
713.520.Valuing certain liabilities where life insurance company joins group
713.525.Obligation to value certain assets and liabilities at joining time
713.530.Treatment of certain losses of life insurance company
713.535.Losses of entities whose membership interests are complying superannuation assets of life insurance company
713.540.Losses of entities whose membership interests are segregated exempt assets of life insurance company
713.545.Treatment of franking surplus in franking account of life insurance subsidiary joining group
713.550.Treatment of head company's franking account after joining
713.565.Treatment of certain liabilities for income year when life insurance company leaves consolidated group
713.570.Certain losses transferred to leaving company
713.575.Terminating value of certain assets where life insurance company leaves group
713.580.Valuing certain liabilities where life insurance company leaves group
713.585.Obligation to value certain assets and liabilities at leaving time

Subdivision 713-M--General insurance companies

713.700.What this Subdivision is about
713.705.Certain assets taken to be retained cost base assets where general insurance company joins group
713.710.Treatment of liabilities and reserves for income year when general insurance company joins or leaves group
713.715.If general insurance company joins consolidated group
713.720.If general insurance company leaves consolidated group
713.725.Treatment of certain assets and liabilities of general insurance companies

Division 715--Interactions between this Part and other areas of the income tax law

Subdivision 715-A--Treatment of unrealised losses existing when ownership or control of a company changes before or during consolidation

715.15. Object of this Subdivision
715.25. Subdivision 165-CC stops applying to earlier changeover time
715.30. Meaning of 165-CC tagged asset
715.35. Meaning of final RUNL
715.50. Step 1 amount is reduced if membership interest in subsidiary member is 165-CC tagged asset and business continuity test is failed
715.55. Step 2 amount is affected if liability of subsidiary member is 165-CC tagged asset of another group member and business continuity test is failed
715.60. Assets that the head company already owns
715.70. Assets of subsidiary member that become those of head company
715.75. Extension of single entity rule and entry history rule
715.80. Application of sections 715-85 to 715-110
715.85. First changeover time for leaving company at or after leaving time
715.90. How business continuity test applies if leaving time is changeover time for leaving company
715.95. If ownership and control of leaving entity have not changed since head company's last changeover time
715.100.First choice: adjustable values of leaving assets reduced to nil
715.105.Second choice: head company's final RUNL applied in reducing adjustable values of leaving assets that are loss assets
715.110.Third choice: loss denial pool of leaving entity created
715.120.What happens
715.125.First choice: adjustable values of leaving assets reduced to nil
715.130.Second choice: pool's loss denial balance applied in reducing adjustable values of leaving assets that are loss assets
715.135.Third choice: loss denial pool of leaving entity created
715.145.Effect of choice on adjustable value of leaving asset
715.155.When asset leaves pool
715.160.How loss denial balance is applied to losses realised on assets in pool
715.165.When pool ceases to exist
715.175.When choice must be made
715.180.Head company to notify leaving entity of choice
715.185.Leaving entity may choose to cancel loss denial pool by reducing adjustable values of assets in the pool

Subdivision 715-B--How Subdivision 165-CD applies to consolidated groups and leaving entities

715.215.Extension of single entity rule and entry history rule
715.225. Working out adjusted unrealised loss using individual asset method
715.230.No reductions or other consequences for interests subject to loss cancellation under Subdivision 715-H
715.240.Application of sections 715-245 to 715-260
715.245.If ownership or control of leaving entity has altered since head company's last alteration time or formation of group
715.250.If head company has had an alteration time but ownership and control of leaving entity have not altered since
715.255.Consequences if leaving entity is a loss company at the leaving time
715.260.If neither of sections 715-245 and 715-250 applies
715.265.Head company does not have relevant equity or debt interest in a loss company if widely held top company does not have such an interest
715.270.Subdivision 165-CD applies

Subdivision 715-C--Common rules for the purposes of Subdivisions 715-A and 715-B

715.290.Additional assumptions to be made when using reference time

Subdivision 715-D--Treatment of company's deferred losses under Subdivision 170-D on joining a consolidated group

715.310.What is a 170-D deferred loss, and when it revives
715.355.Head company's own deferred losses at formation time
715.360.Deferred losses brought in by subsidiary member
715.365.How loss denial balance is applied when 170-D deferred loss revives

Subdivision 715-E--Interactions with Division 775

715.370.Cost setting--reference time for determining currency exchange rate effect

Subdivision 715-F--Interactions with Division 230

715.375.Cost setting on joining--amount of liability that is Division 230 financial arrangement
715.378.Cost setting on joining--head company's right to receive or obligation to provide payment
715.379.Cost setting on leaving--amount of intragroup liability that is Division 230 financial arrangement
715.379A.Cost setting on leaving--head company's or leaving entity's right to receive or obligation to provide payment
715.380.Exit history rule not to affect certain matters related to Division 230 financial arrangements
715.385.Exit history rule and elective methods applying to Division 230 financial arrangements

Subdivision 715-G--How value shifting rules apply to a consolidated group

715.410.Extension of single entity rule and entry history rule
715.450. No reductions or other consequences for interests subject to loss cancellation under Subdivision 715-H

Subdivision 715-H--Cancelling loss on realisation event for direct or indirect interest in a member of a consolidated group

715.610.Cancellation of loss
715.615.Exception for interests in entity leaving consolidated group
715.620.Exception if loss attributable to certain matters

Subdivision 715-J--Entry history rule and choices

715.660.Head company's choice overriding entry history rule
715.665. Head company's choice to override inconsistency
715.670.Ongoing effect of choices made by entities before joining group
715.675.Head company adopting choice with ongoing effect

Subdivision 715-K--Exit history rule and choices

715.700.Choices leaving entity can make ignoring exit history rule
715.705. Choices leaving entity can make ignoring exit history rule to overcome inconsistencies

Subdivision 715-U--Effect on conduit foreign income

715.875.Extension of single entity rule and entry history rule
715.880. No CFI for leaving entity

Subdivision 715-V--Entity ceasing to be exempt from income tax on becoming subsidiary member of consolidated group

715.900.Transition time taken to be just before joining time

Subdivision 715-W--Effect on arrangements where CGT roll-overs are obtained

715.910.Effect on restructures--original entity becomes a subsidiary member
715.915.Effect on restructures--original entity is a head company
715.920.Effect on restructures--original entity is a head company that becomes a subsidiary member of another group
715.925.Effect on restructures--original entity ceases being a subsidiary member

Division 716--Miscellaneous special rules

Subdivision 716-A--Assessable income and deductions spread over several membership or non-membership periods

716.1. What this Division is about
716.15. Assessable income spread over 2 or more income years
716.25. Deductions spread over 2 or more income years
716.70. Capital expenditure that is fully deductible in one income year
716.75. Application
716.80. Head company's assessable income and deductions
716.85. Entity's assessable income and deductions for a non-membership period
716.90. Entity's share of assessable income or deductions of partnership or trust
716.95. Special rule if not all partnership or trust's assessable income or deductions taken into account in working out amount
716.100.Spreading period

Subdivision 716-E--Tax cost setting for exploration and prospecting assets

716.300.Prime cost method of working out decline in value

Subdivision 716-G--Low-value and software development pools

716.330.Head company's deductions for decline in value of assets in joining entity's low-value pool
716.335.Entity leaving group with asset allocated to head company's low-value pool
716.340.Depreciating assets arising from expenditure in joining entity's software development pool
716.345.Head company taken not to have incurred expenditure

Subdivision 716-S--Miscellaneous consequences of tax cost setting

716.400.Tax cost setting and bad debts
716.440.Membership interests in joining entity not subject to CGT under Division 855--foreign entity ceasing to hold interests

Subdivision 716-V--Research and Development

716.500.Head company bound by agreements binding on subsidiary members
716.505.History for entitlement to tax offset: joining entity
716.510.History for entitlement to tax offset: leaving entity

Subdivision 716-Z--Other

716.800.Allocating amounts to periods if head company and subsidiary member have different income years
716.850.Grossing up threshold amounts for periods of less than 365 days
716.855.Working out the cost base or reduced cost base of a pre-CGT asset after certain roll-overs
716.860.CGT event straddling joining or leaving time

Division 717--International tax rules

Subdivision 717-A--Foreign income tax offsets

717.1. What this Subdivision is about
717.5. Object of this Subdivision
717.10. Head company taken to be liable for subsidiary member's foreign income tax

Subdivision 717-D--Transfer of certain surpluses under CFC provisions and former FIF and FLP provisions

717.200.What this Subdivision is about
717.205.Object of this Subdivision
717.210.Attribution surpluses
717.220.FIF surpluses
717.227.Deferred attribution credits

Subdivision 717-E--Transfer of certain surpluses under CFC provisions and former FIF and FLP provisions

717.235.What this Subdivision is about
717.240.Object of this Subdivision
717.245.Attribution surpluses
717.255.FIF surpluses
717.262.Deferred attribution credits

Subdivision 717-O--Offshore banking units

717.700.What this Subdivision is about
717.705.Object of this Subdivision
717.710.Head company treated as OBU

Division 719--MEC groups

Subdivision 719-A--Modified application of Part 3-90 to MEC groups

719.2. Modified application of Part 3-90 to MEC groups

Subdivision 719-B--MEC groups and their members

719.4. What this Subdivision is about
719.5. What is a MEC group?
719.10. What is a potential MEC group?
719.15. What is an eligible tier-1 company?
719.20. What is a top company and a tier-1 company?
719.25. Head company, subsidiary members and members of a MEC group
719.30. Treating entities as wholly-owned subsidiaries by disregarding employee shares
719.35. Treating entities held through non-fixed trusts as wholly-owned subsidiaries
719.40. Special conversion event--potential MEC group
719.45. Application of sections 703-20 and 703-25
719.50. Eligible tier-1 companies may choose to consolidate a potential MEC group
719.55. When choice starts to have effect
719.60. Appointment of provisional head company
719.65. Qualifications for the provisional head company of a MEC group
719.70. Income year of new provisional head company to be the same as that of former provisional head company
719.75. Head company
719.76. Notice of choice to consolidate
719.77. Notice in relation to new eligible tier-1 members etc.
719.78. Notice of special conversion event
719.79. Notice of appointment of provisional head company after formation of group
719.80. Notice of events affecting MEC group
719.85. Application
719.90. New head company treated as substituted for old head company at all times before the transition time
719.95. No consequences of old head company becoming, and new head company ceasing to be, subsidiary member of the group

Subdivision 719-BA--Group conversions involving MEC groups

719.120.Application
719.125.Head company of new group retains history of head company of old group
719.130.Provisions of this Part not to apply to conversion
719.135.Provisions of this Part applying to conversion despite section 719-130
719.140.Other provisions of this Part not applying to conversion

Subdivision 719-C--MEC group cost setting rules

719.150. What this Subdivision is about
719.155.Object of this Subdivision
719.160.Tax cost setting rules for joining have effect with modifications
719.165.Trading stock value and registered emissions unit value not set for assets of eligible tier-1 companies
719.170.Modified effect of subsections 705-175(1) and 705-185(1)

Subdivision 719-F--Losses

719.250.What this Subdivision is about
719.255.Special rules
719.260. Special test for utilising a loss because a company maintains the same owners
719.265.What is the test company?
719.270.Assumptions about the test company having made the loss for an income year
719.275.Assumptions about nothing happening to affect direct and indirect ownership of the test company
719.280.Assumptions about the test company failing to meet the conditions in section 165-12
719.285.Business continuity test and change of head company
719.300.Application
719.305.Subdivision 707-C affects utilisation of losses made by ongoing head company while it was head company
719.310.Adjustment of available fractions for bundles of losses previously transferred to ongoing head company
719.315.Further adjustment of available fractions for all bundles
719.320.Limit on utilising losses other than the prior group losses
719.325.Cancellation of all losses in a bundle

Subdivision 719-H--Imputation issues

719.425.Guide to Subdivision 719-H
719.430.Transfer of franking account balance on cessation event
719.435.Distributions by subsidiary members of MEC group taken to be distributions by head company

Subdivision 719-I--Bad debts

719.450.What this Subdivision is about
719.455.Special test for deducting a bad debt because a company maintains the same owners
719.460.Assumptions about nothing happening to affect direct and indirect ownership of the test company
719.465.Assumptions about the test company failing to meet the conditions in section 165-123

Subdivision 719-J--MEC group cost setting rules

719.500. What this Subdivision is about
719.505.Application and object of this Subdivision
719.510.Modified operation of paragraphs 711-15(1)(b) and (c)

Subdivision 719-K--MEC group cost setting rules

719.550. What this Subdivision is about
719.555.Application and object of this Subdivision
719.560.Pooled interests
719.565.Setting cost of reset interests
719.570.Cost setting amount

Subdivision 719-T--Interactions between this Part and other areas of the income tax law

719.700.Changeover times under section 165-115C or 165-115D
719.705.Additional changeover times for head company of MEC group
719.720.Alteration times under section 165-115L or 165-115M
719.725.Additional alteration times for head company of MEC group
719.730.Some alteration times only affect interests in top company
719.735.Some alteration times affect only pooled interests
719.740.Head company does not have relevant equity or debt interest in a loss company if widely held top company does not have such an interest
719.755.Effect on MEC group cost setting rules if head company is losing entity or gaining entity for indirect value shift
719.775.Cancellation of loss
719.780.Exception for pooled interests in eligible tier-1 companies
719.785.Exception for interests in top company
719.790.Exception for interests in entity leaving MEC group
719.795.Exception if loss attributable to certain matters

Division 721--Liability for payment of tax where head company fails to pay on time

721.1. What this Division is about
721.5. Object of this Division
721.10. When this Division operates
721.15. Head company and contributing members jointly and severally liable to pay group liability
721.17. Notice of joint and several liability for general interest charge
721.20. Limit on liability where group first comes into existence
721.25. When a group liability is covered by a tax sharing agreement
721.30. TSA contributing members liable for contribution amounts
721.32. Notice of general interest charge liability under TSA
721.35. When a TSA contributing member has left the group clear of the group liability
721.40. TSA liability and group liability are linked

CHAPTER 3--Specialist liability rules

PART 3-95----VALUE SHIFTING

Division 723--Direct value shifting by creating right over non-depreciating asset

Subdivision 723-A--Reduction in loss from realising non-depreciating asset

723.1. Object
723.10. Reduction in loss from realising non-depreciating asset over which right has been created
723.15. Reduction in loss from realising non-depreciating asset at the same time as right is created over it
723.20. Exceptions
723.25. Realisation event that is only a partial realisation
723.35. Multiple rights created to take advantage of the $50,000 threshold
723.40. Application to CGT asset that is also trading stock or revenue asset
723.50. Effects if right created over underlying asset is also trading stock or a revenue asset

Subdivision 723-B--Reducing reduced cost base of interests in entity that acquires non-depreciating asset under roll-over

723.105.Reduced cost base of interest reduced when interest realised at a loss
723.110.Direct and indirect roll-over replacement for underlying asset

Division 725--Direct value shifting affecting interests in companies and trusts

725.1. What this Division is about

Subdivision 725-A--Scope of the direct value shifting rules

725.45. Main object
725.50. When a direct value shift has consequences under this Division
725.55. Controlling entity test
725.65. Cause of the value shift
725.70. Consequences for down interest only if there is a material decrease in its market value
725.80. Who is an affected owner of a down interest?
725.85. Who is an affected owner of an up interest?
725.90. Direct value shift that will be reversed
725.95. Direct value shift resulting from reversal

Subdivision 725-B--What is a direct value shift

725.145.When there is a direct value shift
725.150.Issue of equity or loan interests at a discount
725.155.Meaning of down interests, decrease time, up interests and increase time
725.160.What is the nature of a direct value shift?
725.165.If market value decrease or increase is only partly attributable to the scheme

Subdivision 725-C--Consequences of a direct value shift

725.205.Consequences depend on character of down interests and up interests
725.210.Consequences for down interests depend on pre-shift gains and losses
725.220.Neutral direct value shifts
725.225.Issue of bonus shares or units
725.230.Off-market buy-backs

Subdivision 725-D--Consequences for down interest or up interest as CGT asset

725.240.CGT consequences; meaning of adjustable value
725.245.Table of taxing events generating a gain for interests as CGT assets
725.250.Table of consequences for adjustable values of interests as CGT assets
725.255.Multiple CGT consequences for the same down interest or up interest

Subdivision 725-E--Consequences for down interest or up interest as trading stock or a revenue asset

725.310.Consequences for down interest or up interest as trading stock
725.315.Adjustable value of trading stock
725.320.Consequences for down interest or up interest as a revenue asset
725.325.Adjustable value of revenue asset
725.335.How to work out those consequences
725.340.Multiple trading stock or revenue asset consequences for the same down interest or up interest

Subdivision 725-F--Value adjustments and taxed gains

725.365.Decreases in adjustable values of down interests (with pre-shift gains), and taxing events generating a gain
725.370.Uplifts in adjustable values of up interests under certain table items
725.375.Uplifts in adjustable values of up interests under other table items
725.380.Decreases in adjustable value of down interests (with pre-shift losses)

Division 727--Indirect value shifting affecting interests in companies and trusts, and arising from non-arm's length dealings

727.1. What this Division is about
727.5. What is an indirect value shift?
727.10. How does this Division deal with indirect value shifts?
727.15. When does an indirect value shift have consequences under this Division?
727.25. Effect of this Division on realisations at a loss that occur before the nature or extent of an indirect value shift can be fully determined

Subdivision 727-A--Scope of the indirect value shifting rules

727.95. Main object
727.100.When an indirect value shift has consequences under this Division
727.105.Ultimate controller test
727.110.Common-ownership nexus test (if both losing and gaining entities are closely held)
727.125.No consequences if losing entity is a complying superannuation entity etc.

Subdivision 727-B--What is an indirect value shift

727.150.How to determine whether a scheme results in an indirect value shift
727.155.Providing economic benefits
727.160.When an economic benefit is provided in connection with a scheme
727.165.Preventing double-counting of economic benefits

Subdivision 727-C--Exclusions

727.200.What this Subdivision is about
727.215.Amount does not exceed $50,000
727.220.Disposal of asset at cost, or at undervalue if full value is not reflected in adjustable values of equity or loan interests in the losing entity
727.230.Services provided by losing entity to gaining entity for at least their direct cost
727.235.Services provided by gaining entity to losing entity for no more than a commercially realistic price
727.240.What services certain provisions apply to
727.245.How to work out certain amounts for the purposes of sections 727-230 and 727-235
727.250.Distribution by an entity to a member or beneficiary
727.260.Shift down a wholly-owned chain of entities

Subdivision 727-D--Working out the market value of economic benefits

727.300.What the rules in this Subdivision are for
727.315.Transfer, for its adjustable value, of depreciating asset acquired for less than $1,500,000

Subdivision 727-E--Key concepts

727.350.Ultimate controller
727.355.Control (for value shifting purposes) of a company
727.360.Control (for value shifting purposes) of a fixed trust
727.365.Control (for value shifting purposes) of a non-fixed trust
727.370.Preventing double counting for percentage stake tests
727.375.Tests in this Subdivision are exhaustive
727.400.When 2 entities have a common-ownership nexus within a period
727.405.Ultimate stake of a particular percentage in a company
727.410.Ultimate stake of a particular percentage in a fixed trust
727.415.Rules for tracing

Subdivision 727-F--Consequences of an indirect value shift

727.450.What this Subdivision is about
727.455.Consequences of the indirect value shift
727.460.Affected interests in the losing entity
727.465.Affected interests in the gaining entity
727.470.Exceptions
727.520.Equity or loan interest and related terms
727.525.Indirect equity or loan interest
727.530.Who are the affected owners
727.550.Choosing the adjustable value method
727.555.Giving other affected owners information about the choice

Subdivision 727-G--The realisation time method

727.600.What this Subdivision is about
727.610.Consequences of indirect value shift
727.615.Reduction of loss on realisation event for affected interest in losing entity
727.620.Reduction of gain on realisation event for affected interest in gaining entity
727.625.Total gain reductions not to exceed total loss reductions
727.630.How cap in section 727-625 applies if affected interest is also trading stock or a revenue asset
727.635.Splitting an equity or loan interest
727.640.Merging equity or loan interests
727.645.Effect of CGT roll-over
727.700.When 95% services indirect value shift is excluded
727.705.Another provision of the income tax law affects amount related to services by at least $100,000
727.710.Ongoing or recent service arrangement reduces value of losing entity by at least $100,000
727.715.Service arrangements reduce value of losing entity that is a group service provider by at least $500,000
727.720.Abnormal service arrangement reduces value of losing entity that is not a group service provider by at least $500,000
727.725.Meaning of predominantly-services indirect value shift

Subdivision 727-H--The adjustable value method

727.750.What this Subdivision is about
727.755.Consequences of indirect value shift
727.770.Reduction under the adjustable value method
727.775.Has there been a disaggregated attributable decrease?
727.780.Working out the reduction on a loss-focussed basis
727.800.Uplift under the attributable increase method
727.805.Has there been a disaggregated attributable increase?
727.810.Scaling-down formula
727.830.CGT assets
727.835.Trading stock
727.840.Revenue assets

Subdivision 727-K--Reduction of loss on equity or loan interests realised before the IVS time

727.850.Consequences of scheme under this Subdivision
727.855.Presumed indirect value shift
727.860.Conditions about the prospective gaining entity
727.865.How other provisions of this Division apply to support this Subdivision
727.870.Effect of CGT roll-over
727.875.Application to CGT asset that is also trading stock or revenue asset

Subdivision 727-L--Indirect value shift resulting from a direct value shift

727.905.How this Subdivision affects the rest of this Division
727.910.Treatment of value shifted under the direct value shift

CHAPTER 4--International aspects of income tax

PART 4-5--GENERAL

Division 764--Source rules

764.1. What this Division is about

Subdivision 764-A--Source rules

764.5. Source rule for international tax agreements

Division 768--Foreign non-assessable income and gains

Subdivision 768-A--Returns on foreign investment

768.1. What this Subdivision is about
768.5. Foreign equity distributions on participation interests
768.7. Foreign equity distributions entitled to a foreign income tax deduction
768.10. Meaning of foreign equity distribution
768.15. Participation test--minimum 10% participation

Subdivision 768-B--Some items of income that are exempt from income tax

768.100.Foreign government officials in Australia
768.105.Compensation arising out of Second World War
768.110.Foreign residents deriving income from certain activities in Australia's exclusive economic zone or on or above Australia's continental shelf

Subdivision 768-G--Reduction in capital gains and losses arising from CGT events in relation to certain voting interests in active foreign companies

768.500.What this Subdivision is about
768.505.Reducing a capital gain or loss from certain CGT events in relation to certain voting interests
768.510.Active foreign business asset percentage
768.515.Choices to apply market value method or book value method
768.520.Market value method--choice made under subsection 768-515(1)
768.525.Book value method--choice made under subsection 768-515(2)
768.530.Active foreign business asset percentage--modifications for foreign life insurance companies and foreign general insurance companies
768.533.Foreign company that is a FIF using CFC calculation method--treatment as AFI subsidiary under this Subdivision
768.535.Modified rules for foreign wholly-owned groups
768.540.Active foreign business assets of a foreign company
768.545.Assets included in the total assets of a foreign company
768.550.Direct voting percentage in a company
768.555.Indirect voting percentage in a company
768.560.Total voting percentage in a company

Subdivision 768-R--Temporary residents

768.900.What this Subdivision is about
768.905.Objects
768.910.Income derived by temporary resident
768.915.Certain capital gains and capital losses of temporary resident to be disregarded
768.950.Individual becoming an Australian resident
768.955.Temporary resident who ceases to be temporary resident but remains an Australian resident
768.960.Temporary resident not attributable taxpayer for purposes of controlled foreign companies rules
768.970. Modification of rules for accruals system of taxation of certain non-resident trust estates
768.980.Interest paid by temporary resident

Division 770--Foreign income tax offsets

770.1. What this Division is about
770.5. Object

Subdivision 770-A--Entitlement rules for foreign income tax offsets

770.10. Entitlement to foreign income tax offset
770.15. Meaning of foreign income tax, credit absorption tax and unitary tax

Subdivision 770-B--Amount of foreign income tax offset

770.65. What this Subdivision is about
770.70. Amount of foreign income tax offset
770.75. Foreign income tax offset limit
770.80. Increase in offset limit for tax paid on amounts to which section 23AI or 23AK of the Income Tax Assessment Act 1936 apply

Subdivision 770-C--Rules about payment of foreign income tax

770.130.When foreign income tax is considered paid--taxes paid by someone else
770.135.Foreign income tax paid by CFCs on attributed amounts
770.140.When foreign income tax is considered not paid--anti-avoidance rule

Subdivision 770-D--Administration

770.190.Amendment of assessments

Division 775--Foreign currency gains and losses

775.5. What this Division is about

Subdivision 775-A--Objects of this Division

775.10. Objects of this Division

Subdivision 775-B--Realisation of forex gains or losses

775.15. Forex realisation gains are assessable
775.20. Certain forex realisation gains are exempt income
775.25. Certain forex realisation gains are non-assessable non-exempt income
775.27. Certain forex realisation gains are non-assessable non-exempt income
775.30. Forex realisation losses are deductible
775.35. Certain forex realisation losses are disregarded
775.40. Disposal of foreign currency or right to receive foreign currency--forex realisation event 1
775.45. Ceasing to have a right to receive foreign currency--forex realisation event 2
775.50. Ceasing to have an obligation to receive foreign currency--forex realisation event 3
775.55. Ceasing to have an obligation to pay foreign currency--forex realisation event 4
775.60. Ceasing to have a right to pay foreign currency--forex realisation event 5
775.65. Only one forex realisation event to be counted
775.70. Tax consequences of certain short-term forex realisation gains
775.75. Tax consequences of certain short-term forex realisation losses
775.80. You may choose not to have sections 775-70 and 775-75 apply to you
775.85. Forex cost base of a right to receive foreign currency
775.90. Forex entitlement base of a right to pay foreign currency
775.95. Proceeds of assuming an obligation to pay foreign currency
775.100.Net costs of assuming an obligation to receive foreign currency
775.105.Currency exchange rate effect
775.110.Constructive receipts and payments
775.115.Economic set-off to be treated as legal set-off
775.120.Non-arm's length transactions
775.125.CGT consequences of the acquisition of foreign currency as a result of forex realisation event 2 or 3
775.130.Certain deductions not allowable
775.135.Right to receive or pay foreign currency
775.140.Obligation to pay or receive foreign currency
775.145.Application of forex realisation events to currency and fungible rights and obligations
775.150.Transitional election
775.155.Applicable commencement date
775.160.Exception--event happens before the applicable commencement date
775.165.Exception--currency or right acquired, or obligation incurred, before the applicable commencement date
775.168.Exception--disposal or redemption of traditional securities
775.175.Application to things happening before commencement

Subdivision 775-C--Roll-over relief for facility agreements

775.180.What this Subdivision is about
775.185.What is a facility agreement?
775.190.What is an eligible security?
775.195.You may choose roll-over relief for a facility agreement
775.200.Forex realisation event 4 does not apply
775.205.What is a roll-over?
775.210.Notional loan
775.215.Discharge of obligation to pay the principal amount of a notional loan under a facility agreement--forex realisation event 6
775.220.Material variation of a facility agreement--forex realisation event 7

Subdivision 775-D--Qualifying forex accounts that pass the limited balance test

775.225.What this Subdivision is about
775.230.Election to have this Subdivision apply to one or more qualifying forex accounts
775.235.Variation of election
775.240.Withdrawal of election
775.245.When does a qualifying forex account pass the limited balance test?
775.250.Tax consequences of passing the limited balance test
775.255.Notional realisation when qualifying forex account starts to pass the limited balance test
775.260.Modification of tax recognition time

Subdivision 775-E--Retranslation for qualifying forex accounts

775.265.What this Subdivision is about
775.270.You may choose retranslation for a qualifying forex account
775.275.Withdrawal of choice
775.280.Tax consequences of choosing retranslation for an account
775.285.Retranslation of gains and losses relating to a qualifying forex account--forex realisation event 8

Subdivision 775-F--Retranslation under foreign exchange retranslation election under Subdivision 230-D

775.290.What this Subdivision is about
775.295.When this Subdivision applies
775.300.Tax consequences of choosing retranslation for arrangement
775.305.Retranslation of gains and losses relating to arrangement to which foreign exchange retranslation election applies--forex realisation event 9
775.310.When election ceases to apply to arrangement
775.315.Balancing adjustment when election ceases to apply to arrangement

Division 802--Foreign residents' income with an underlying foreign source

Subdivision 802-A--Conduit foreign income

802.5. What this Subdivision is about
802.10. Objects
802.15. Foreign residents--exempting CFI from Australian tax
802.17. Trust estates and foreign resident beneficiaries--exempting CFI from Australian tax
802.20. Distributions between Australian corporate tax entities--non-assessable non-exempt income
802.25. Conduit foreign income of an Australian corporate tax entity
802.30. Foreign source income amounts
802.35. Capital gains and losses
802.40. Effect of foreign income tax offset on conduit foreign income
802.45. Previous declarations of conduit foreign income
802.50. Receipt of an unfranked distribution from another Australian corporate tax entity
802.55. No double benefits
802.60. No streaming of distributions

Division 815--Cross-border transfer pricing

Subdivision 815-A--Treaty-equivalent cross-border transfer pricing rules

815.1. What this Subdivision is about
815.5. Object
815.10. Transfer pricing benefit may be negated
815.15. When an entity gets a transfer pricing benefit
815.20. Cross-border transfer pricing guidance
815.25. Modified transfer pricing benefit for thin capitalisation
815.30. Determinations negating transfer pricing benefit
815.35. Consequential adjustments
815.40. No double taxation

Subdivision 815-B--Arm's length principle for cross-border conditions between entities

815.101.What this Subdivision is about
815.105.Object
815.110.Operation of Subdivision
815.115.Substitution of arm's length conditions
815.120.When an entity gets a transfer pricing benefit
815.125.Meaning of arm's length conditions
815.130.Relevance of actual commercial or financial relations
815.135.Guidance
815.140.Modification for thin capitalisation
815.145.Consequential adjustments
815.150.Amendment of assessments

Subdivision 815-C--Arm's length principle for permanent establishments

815.201.What this Subdivision is about
815.205.Object
815.210.Operation of Subdivision
815.215.Substitution of arm's length profits
815.220.When an entity gets a transfer pricing benefit
815.225.Meaning of arm's length profits
815.230.Source rules for certain arm's length profits
815.235.Guidance
815.240.Amendment of assessments

Subdivision 815-D--Special rules for trusts and partnerships

815.301.What this Subdivision is about
815.305.Special rule for trusts
815.310.Special rules for partnerships

Subdivision 815-E--Reporting obligations for country by country reporting entities

815.350.What this Subdivision is about
815.355.Requirement to give statements
815.360.Replacement reporting periods
815.365.Exemptions
815.370.Meaning of country by country reporting entity (or CBC reporting entity)
815.375.Meaning of country by country reporting parent (or CBC reporting parent)
815.380.Meaning of country by country reporting group (or CBC reporting group)

Division 820--Thin capitalisation rules

820.1. What this Division is about
820.5. Does this Division apply to an entity?
820.10. Map of Division

Subdivision 820-A--Preliminary

820.30. Object of Division
820.32. Exemption for private or domestic assets and non-debt liabilities
820.35. Application--$2 million threshold
820.37. Application--assets threshold
820.39. Exemption of certain special purpose entities
820.40. Meaning of debt deduction

Subdivision 820-B--Thin capitalisation rules for outward investing entities

820.65. What this Subdivision is about
820.85. Thin capitalisation rule for outward investing entities (non-ADI)
820.90. Maximum allowable debt
820.95. Safe harbour debt amount--outward investor (general)
820.100.Safe harbour debt amount--outward investor (financial)
820.105.Arm's length debt amount
820.110.Worldwide gearing debt amount--outward investor that is not also an inward investment vehicle
820.111.Worldwide gearing debt amount--outward investor that is also an inward investment vehicle
820.115.Amount of debt deduction disallowed
820.120.Application to part year periods

Subdivision 820-C--Thin capitalisation rules for inward investing entities

820.180.What this Subdivision is about
820.185.Thin capitalisation rule for inward investing entities (non-ADI)
820.190.Maximum allowable debt
820.195.Safe harbour debt amount--inward investment vehicle (general)
820.200.Safe harbour debt amount--inward investment vehicle (financial)
820.205.Safe harbour debt amount--inward investor (general)
820.210.Safe harbour debt amount--inward investor (financial)
820.215.Arm's length debt amount
820.216.Worldwide gearing debt amount--inward investment vehicle (general)
820.217.Worldwide gearing debt amount--inward investment vehicle (financial)
820.218.Worldwide gearing debt amount--inward investor (general)
820.219.Worldwide gearing debt amount--inward investor (financial)
820.220.Amount of debt deduction disallowed
820.225.Application to part year periods

Subdivision 820-D--Thin capitalisation rules for outward investing entities

820.295.What this Subdivision is about
820.300.Thin capitalisation rule for outward investing entities (ADI)
820.305.Minimum capital amount
820.310.Safe harbour capital amount
820.315.Arm's length capital amount
820.320.Worldwide capital amount
820.325.Amount of debt deduction disallowed
820.330.Application to part year periods

Subdivision 820-E--Thin capitalisation rules for inward investing entities

820.390.What this Subdivision is about
820.395.Thin capitalisation rule for inward investing entities (ADI)
820.400.Minimum capital amount
820.405.Safe harbour capital amount
820.410.Arm's length capital amount
820.415.Amount of debt deduction disallowed
820.420.Application to part year periods

Subdivision 820-EA--Some financial entities may choose to be treated as ADIs

820.430.When choice can be made, and what effect it has
820.435.Conditions
820.440.Revocation of choice
820.445.How this Subdivision interacts with Subdivision 820-FA

Subdivision 820-FA--How the thin capitalisation rules apply to consolidated groups and MEC groups

820.579.What this Subdivision is about
820.581.How this Division applies to head company for income year in which group comes into existence or ceases to exist
820.583.Classification of head company
820.584.Exempt special purpose entities treated as not being member of group
820.585.Exemption for consolidated group headed by foreign-controlled Australian ADI or its holding company
820.587.Additional application of Subdivision 820-D to MEC group that includes foreign-controlled Australian ADI
820.588.Choice to treat specialist credit card institutions as being financial entities and not ADIs
820.589.How Subdivision 820-D applies to a MEC group

Subdivision 820-FB--Grouping branches of foreign banks and foreign financial entities with a consolidated group, MEC group or single Australian resident company

820.595.What this Subdivision is about
820.597.Choice by head company of consolidated group or MEC group
820.599.Choice by Australian resident company outside consolidatable group and MEC group
820.601.Application
820.603.General
820.605.Effect on establishment entity if certain debt deductions disallowed
820.607.Effect on test periods under this Division
820.609.Effect on classification of head company or single company
820.610.Choice not to be outward investing entity (ADI) or inward investing entity (ADI)
820.611.Values to be based on what would be in consolidated accounts for group
820.613.How Subdivision 820-D applies
820.615.How Subdivision 820-E applies

Subdivision 820-G--Calculating the average values

820.625.What this Subdivision is about
820.630.Methods of calculating average values
820.635.The opening and closing balances method
820.640.The 3 measurement days method
820.645.The frequent measurement method
820.675.Amount to be expressed in Australian currency
820.680.Valuation of assets, liabilities and equity capital
820.682.Recognition of assets and liabilities--modifying application of accounting standards
820.685.Valuation of debt capital
820.690.Commissioner's power

Subdivision 820-H--Control of entities

820.740.What this Subdivision is about
820.745.What is an Australian controlled foreign entity?
820.750.What is an Australian controller of a controlled foreign company?
820.755.What is an Australian controller of a controlled foreign trust?
820.760.What is an Australian controller of a controlled foreign corporate limited partnership?
820.780.What is a foreign controlled Australian entity?
820.785.What is a foreign controlled Australian company?
820.790.What is a foreign controlled Australian trust?
820.795.What is a foreign controlled Australian partnership?
820.815.General rule about thin capitalisation control interest in a company, trust or partnership
820.820.Special rules about calculating TC control interest held by an entity
820.825.Special rules about calculating TC control interests held by a group of entities
820.830.Special rules about determining percentage of TC control interest
820.835.Commissioner's power
820.855.TC direct control interest in a company
820.860.TC direct control interest in a trust
820.865.TC direct control interest in a partnership
820.870.TC indirect control interest in a company, trust or partnership
820.875.TC control tracing interest in a company, trust or partnership

Subdivision 820-HA--Controlled foreign entity debt and controlled foreign entity equity

820.880.What this Subdivision is about
820.881.Application
820.885.What is controlled foreign entity debt?
820.890.What is controlled foreign entity equity?

Subdivision 820-I--Associate entities

820.900.What this Subdivision is about
820.905.Associate entity
820.910.Associate entity debt
820.915.Associate entity equity
820.920.Associate entity excess amount

Subdivision 820-J--Equity interest in a trust or partnership

820.925.What this Subdivision is about
820.930.Equity interest in a trust or partnership

Subdivision 820-JA--Worldwide debt and equity concepts

820.931.What this Subdivision is about
820.932.Worldwide debt and worldwide equity
820.933.Statement worldwide debt, statement worldwide equity and statement worldwide assets
820.935.Meaning of audited consolidated financial statements

Subdivision 820-K--Zero-capital amount

820.940.What this Subdivision is about
820.942.How to work out the zero-capital amount

Subdivision 820-KA--Cost-free debt capital and excluded equity interests

820.945.What this Subdivision is about
820.946.Cost-free debt capital and excluded equity interest

Subdivision 820-L--Record keeping requirements

820.950.What this Subdivision is about
820.960.Records about Australian permanent establishments
820.962.Records about Australian permanent establishments--exemptions from Australian accounting standards
820.965.Review of Commissioner's decision
820.980.Records about arm's length debt amount and arm's length capital amount
820.990.Offences--treatment of partnerships
820.995.Offences--treatment of unincorporated companies

Division 830--Foreign hybrids

830.1. What this Division is about

Subdivision 830-A--Meaning of "foreign hybrid"

830.5. Foreign hybrid
830.10. Foreign hybrid limited partnership
830.15. Foreign hybrid company

Subdivision 830-B--Extension of normal partnership provisions to foreign hybrid companies

830.20. Treatment of company as a partnership
830.25. Partners are the shareholders in the company
830.30. Individual interest of a partner in net income etc. equals percentage of notional distribution of company's profits
830.35. Partner's interest in assets
830.40. Control and disposal of share in partnership income

Subdivision 830-C--Special rules applicable while an entity is a foreign hybrid

830.45. Partner's revenue and net capital losses from foreign hybrid not to exceed partner's loss exposure amount
830.50. Deduction etc. where partner's foreign hybrid revenue loss amount and foreign hybrid net capital loss amount are less than partner's loss exposure amount
830.55. Meaning of foreign hybrid net capital loss amount
830.60. Meaning of loss exposure amount
830.65. Meaning of outstanding foreign hybrid revenue loss amount
830.70. Meaning of outstanding foreign hybrid net capital loss amount
830.75. Extended meaning of subject to foreign tax

Subdivision 830-D--Special rules applicable when an entity becomes or ceases to be a foreign hybrid

830.80. Setting the tax cost of partners' interests in the assets of an entity that becomes a foreign hybrid
830.85. Setting the tax cost of assets of an entity when it ceases to be a foreign hybrid
830.90. What the expression tax cost is set means
830.95. What the expression tax cost setting amount means
830.100.What the expression tax cost means
830.105.What the expression asset-based income tax regime means
830.110.No disposal of assets etc. on entity becoming or ceasing to be a foreign hybrid
830.115.Tax losses cannot be transferred to a foreign hybrid
830.120.End of CFC's last statutory accounting period
830.125.How long interest in asset, or asset, held

Division 832--Hybrid mismatch rules

832.1. What this Division is about

Subdivision 832-A--Preliminary

832.5. What this Subdivision is about
832.10. Entitlement to receive payment
832.15. Entitlement to receive non-cash benefits
832.20. Losses that arise from payments or parts of payments
832.25. Recipients and payers of a payment
832.30. How this Division applies to entities
832.35. Single entity rule otherwise not disregarded
832.40. Schemes outside Australia
832.45. Relationship between this Division and other charging provisions in this Act
832.50. Relationship between this Division and Division 820
832.55. Division does not affect foreign residence rules
832.60. Valuation of trading stock affected by hybrid mismatch rules

Subdivision 832-B--Concepts relating to mismatches

832.100.What this Subdivision is about
832.105.When a payment gives rise to a deduction/non-inclusion mismatch
832.110.When a payment gives rise to a deduction/deduction mismatch
832.115.Disregard effect of Division in determining deductions
832.120.Meaning of foreign income tax deduction
832.125.Meaning of subject to Australian income tax
832.130.Meaning of subject to foreign income tax
832.135.Safe harbour for translation rates

Subdivision 832-C--Hybrid financial instrument mismatch

832.175.What this Subdivision is about
832.180.Deduction not allowable--Australian primary response
832.185.Inclusion in assessable income--Australian secondary response
832.190.Exception where entity not a party to the structured arrangement
832.195.When a hybrid financial instrument mismatch is an offshore hybrid mismatch
832.200.When a payment gives rise to a hybrid financial instrument mismatch
832.205.Meaning of Division 832 control group
832.210.Meaning of structured arrangement
832.215.Hybrid mismatch
832.220.Hybrid requirement--payments under financial instruments
832.225.Hybrid requirement--payments under transfers of certain financial instruments
832.230.Hybrid mismatch--integrity rule for substitute payments
832.235.Extended operation of this Subdivision in relation to concessional foreign taxes
832.240.Adjustment if hybrid financial instrument payment is income in a later year

Subdivision 832-D--Hybrid payer mismatch

832.280.What this Subdivision is about
832.285.Deduction not allowable--Australian primary response
832.290.Inclusion in assessable income--Australian secondary response
832.295.Exception where entity not a party to the structured arrangement
832.300.When a hybrid payer mismatch is an offshore hybrid mismatch
832.305.When a payment gives rise to a hybrid payer mismatch
832.310.Hybrid mismatch
832.315.Hybrid requirement--assume payment was made to same recipient but by an ungrouped payer
832.320.Hybrid payer
832.325.Meaning of liable entity
832.330.Neutralising amount
832.335.Adjustment if hybrid payer has dual inclusion income in a later year

Subdivision 832-E--Reverse hybrid mismatch

832.375.What this Subdivision is about
832.380.Deduction not allowable--Australian primary response
832.385.Exception where entity not a party to the structured arrangement
832.390.When a reverse hybrid mismatch is an offshore hybrid mismatch
832.395.When a payment gives rise to a reverse hybrid mismatch
832.400.Hybrid mismatch
832.405.Hybrid requirement--assume payment was made to an investor
832.410.Reverse hybrid

Subdivision 832-F--Branch hybrid mismatch

832.450.What this Subdivision is about
832.455.Deduction not allowable
832.460.Exception where entity not a party to the structured arrangement
832.465.When a branch hybrid mismatch is an offshore hybrid mismatch
832.470.Branch hybrid mismatch
832.475.Hybrid mismatch
832.480.Hybrid requirement--payment made directly or indirectly to a branch hybrid
832.485.Branch hybrid

Subdivision 832-G--Deducting hybrid mismatch

832.525.What this Subdivision is about
832.530.Deduction not allowable
832.535.Additional requirements for secondary response
832.540.When a deducting hybrid mismatch is an offshore hybrid mismatch
832.545.When an amount gives rise to a deducting hybrid mismatch
832.550.Deducting hybrid
832.555.Identifying a secondary response country
832.560.Neutralising amount
832.565.Adjustment if deducting hybrid has dual inclusion income in a later year

Subdivision 832-H--Imported hybrid mismatch

832.605.What this Subdivision is about
832.610.Deduction not allowable
832.615.When a payment gives rise to an imported hybrid mismatch
832.620.Hybrid mismatch
832.625.Meaning of importing payment
832.630.Working out the amount of the imported hybrid mismatch
832.635.Carry forward of residual offshore hybrid mismatches

Subdivision 832-I--Dual inclusion income

832.675.What this Subdivision is about
832.680.Dual inclusion income, and when an entity is eligible to apply it

Subdivision 832-J--Integrity rule

832.720. What this Subdivision is about
832.725.Payments made to interposed foreign entity (integrity measure)--denial of deduction
832.730.Back to back arrangements, etc.
832.735.Determination may specify kinds of scheme and circumstances where no denial of deduction

Subdivision 832-K--Modifications for Division 230

832.775.What this Subdivision is about
832.780.Section 832-20 applies to Division 230 losses
832.785.Adjusting Division 230 loss
832.790.Modifications relating to Division 230 gains and losses

Division 840--Withholding taxes

840.1. What this Division is about

Subdivision 840-M--Managed investment trust withholding tax

840.800.What this Subdivision is about
840.805.Liability for managed investment trust withholding tax
840.810.When managed investment trust withholding tax is payable
840.815.Certain income is non-assessable non-exempt income
840.820.Agency rules

Subdivision 840-S--Labour mobility program withholding tax

840.900.What this Subdivision is about
840.905.Liability for labour mobility program withholding tax
840.906.Covered labour mobility programs
840.910.When labour mobility program withholding tax is payable
840.915.Certain income is non-assessable non-exempt income
840.920.Overpayment of labour mobility program withholding tax

Division 842--Exempt Australian source income and gains of foreign residents

Subdivision 842-B--Some items of Australian source income of foreign residents that are exempt from income tax

842.100.What this Subdivision is about
842.105.Amounts of Australian source ordinary income and statutory income that are exempt

Subdivision 842-I--Investment manager regime

842.200.What this Subdivision is about
842.205.Object of this Subdivision
842.210.IMR concessions apply only to foreign residents etc.
842.215.IMR concessions
842.220.Meaning of IMR entity
842.225.Meaning of IMR financial arrangement
842.230.Meaning of IMR widely held entity
842.235.Rules for determining total participation interests for the purposes of the widely held test
842.240.Extended meaning of IMR widely held entity--temporary circumstances outside entity's control
842.245.Meaning of independent Australian fund manager
842.250.Reductions in IMR concessions if independent Australian fund manager entitled to substantial share of IMR entity's income

Division 855--Capital gains and foreign residents

855.1. What this Division is about

Subdivision 855-A--Disregarding a capital gain or loss by foreign residents

855.5. Objects of this Subdivision
855.10. Disregarding a capital gain or loss from CGT events
855.15. When an asset is taxable Australian property
855.16. Meaning of permanent establishment article
855.20. Taxable Australian real property
855.25. Indirect Australian real property interests
855.30. Principal asset test
855.32. Disregard market value of duplicated non-TARP assets
855.35. Reducing a capital gain or loss from a business asset--Australian permanent establishments
855.40. Capital gains and losses of foreign residents through fixed trusts

Subdivision 855-B--Becoming an Australian resident

855.45. Individual or company becomes an Australian resident
855.50. Trust becomes a resident trust
855.55. CFC becomes an Australian resident

Division 880--Sovereign entities and activities

Subdivision 880-A--Basic concepts

880.10. What this Subdivision is about
880.15. Meaning of sovereign entity
880.20. Meaning of sovereign entity group

Subdivision 880-B--Basic tax treatment of sovereign entities

880.50. What this Subdivision is about
880.55. Sovereign entity liable to pay tax
880.60. Bodies politic of foreign countries and foreign government agencies treated as foreign residents

Subdivision 880-C--Sovereign immunity

880.100.What this Subdivision is about
880.105.Sovereign entity's income from membership interest etc. in trust or company--non-assessable non-exempt income
880.110.Sovereign entity's deduction from membership interest etc.--loss not deductible
880.115.Sovereign entity's capital gain from membership interest etc.--gain disregarded
880.120.Sovereign entity's capital loss from membership interest etc. in trust or company--loss disregarded
880.125.Covered sovereign entities
880.130.Meaning of public non-financial entity and public financial entity

Subdivision 880-D--Consular activities

880.200.What this Subdivision is about
880.205.Income from consular functions--non-assessable non-exempt income

CHAPTER 5--Administration

PART 5-30----RECORD-KEEPING AND OTHER OBLIGATIONS

Division 900--Substantiation rules

900.1. What this Division is about

Subdivision 900-A--Application of Division

900.5. Application of the requirements of Division 900
900.10. Substantiation requirement
900.12. Application to recipients and payers of certain withholding payments

Subdivision 900-B--Substantiating work expenses

900.15. Getting written evidence
900.20. Keeping travel records
900.25. Retaining the written evidence and travel records
900.30. Meaning of work expense
900.35. Exception for small total of expenses
900.40. Exception for laundry expenses below a certain limit
900.45. Exception for work expense related to award transport payment
900.50. Exception for domestic travel allowance expenses
900.55. Exception for overseas travel allowance expenses
900.60. Exception for reasonable overtime meal allowance
900.65. Crew members on international flights need not keep travel records

Subdivision 900-C--Substantiating car expenses

900.70. Getting written evidence
900.75. Retaining the written evidence and odometer records

Subdivision 900-D--Substantiating business travel expenses

900.80. Getting written evidence
900.85. Keeping travel records
900.90. Retaining the written evidence and travel records
900.95. Meaning of business travel expense

Subdivision 900-E--Written evidence

900.100.What this Subdivision is about
900.105.Ways of getting written evidence
900.110.Time limits
900.115.Written evidence from supplier
900.120.Written evidence of depreciating asset expense
900.125.Evidence of small expenses
900.130.Evidence of expenses considered otherwise too hard to substantiate
900.135.Evidence on a payment summary

Subdivision 900-F--Travel records

900.140.What this Subdivision is about
900.145.Purpose of a travel record
900.150.Recording activities in travel records
900.155.Showing which of your activities were income-producing activities

Subdivision 900-G--Retaining and producing records

900.160.What this Subdivision is about
900.165.The retention period
900.170.Extending the retention period if an expense is disputed
900.175.Commissioner may tell you to produce your records
900.180.How to comply with a notice
900.185.What happens if you don't comply

Subdivision 900-H--Relief from effects of failing to substantiate

900.195.Commissioner's discretion to review failure to substantiate
900.200.Reasonable expectation that substantiation would not be required
900.205.What if your documents are lost or destroyed?

Subdivision 900-I--Award transport payments

900.210.What this Subdivision is about
900.215.Deducting an expense related to an award transport payment
900.220.Definition of award transport payment
900.225.Substituted industrial instruments
900.230.Changes to industrial instruments applied for before 29 October 1986
900.235.Changes to industrial instruments solely referable to matters in the instrument
900.240.Deducting in anticipation of receiving award transport payment
900.245.Effect of exception in this Subdivision on exception for small total of expenses
900.250.Effect of exception in this Subdivision on methods of calculating car expense deductions

PART 5-35----MISCELLANEOUS

Division 905--Offences

905.5. Application of the Criminal Code

Division 909--Regulations

909.1. Regulations

CHAPTER 6--The Dictionary

PART 6-1--CONCEPTS AND TOPICS

Division 950--Rules for interpreting this Act

950.100.What forms part of this Act
950.105.What does not form part of this Act
950.150.Guides, and their role in interpreting this Act

Division 960--General

Subdivision 960-B--Utilisation of tax attributes

960.20. Utilisation

Subdivision 960-C--Foreign currency

960.49. Objects of this Subdivision
960.50. Translation of amounts into Australian currency
960.55. Application of translation rules

Subdivision 960-D--Functional currency

960.56. What this Subdivision is about
960.59. Object of this Subdivision
960.60. You may choose a functional currency
960.61. Functional currency for calculating capital gains and losses on indirect Australian real property interests
960.65. Backdated startup choice
960.70. What is the applicable functional currency?
960.75. What is a transferor trust?
960.80. Translation rules
960.85. Special rule about translation--events that happened before the current choice took effect
960.90. Withdrawal of choice

Subdivision 960-E--Entities

960.100.Entities
960.105.Certain entities treated as agents

Subdivision 960-F--Distribution by corporate tax entities

960.115.Meaning of corporate tax entity
960.120.Meaning of distribution

Subdivision 960-G--Membership of entities

960.130.Members of entities
960.135.Membership interest in an entity
960.140.Ordinary membership interest

Subdivision 960-GP--Participation interests in entities

960.180.Total participation interest
960.185.Indirect participation interest
960.190.Direct participation interest
960.195.Non-portfolio interest test

Subdivision 960-H--Abnormal trading in shares or units

960.220.Meaning of trading
960.225.Abnormal trading
960.230.Abnormal trading--5% of shares or units in one transaction
960.235.Abnormal trading--suspected 5% of shares or units in a series of transactions
960.240.Abnormal trading--suspected acquisition or merger
960.245.Abnormal trading--20% of shares or units traded over 60 day period

Subdivision 960-J--Family relationships

960.250.What this Subdivision is about
960.252.Object of this Subdivision
960.255.Family relationships

Subdivision 960-M--Indexation

960.260.What this Subdivision is about
960.265.The provisions for which indexation is relevant
960.270.Indexing amounts
960.275.Indexation factor
960.280.Index number
960.285.Indexation--superannuation and employment termination
960.290.Indexation--levy threshold for the major bank levy

Subdivision 960-S--Market value

960.400.What this Subdivision is about
960.405.Effect of GST on market value of an asset
960.410.Market value of non-cash benefits
960.412.Working out market value using an approved method
960.415.Amounts that depend on market value

Subdivision 960-T--Meaning of Australia

960.500.What this Subdivision is about
960.505.Meaning of Australia

Subdivision 960-U--Significant global entities

960.550.What this Subdivision is about
960.555.Meaning of significant global entity
960.560.Meaning of global parent entity
960.565.Meaning of annual global income
960.570.Meaning of global financial statements
960.575.Meaning of notional listed company group

Division 961--Notional tax offsets

Subdivision 961-A--Dependant

961.1. What this Subdivision is about
961.5. Who is entitled to the notional tax offset
961.10. Amount of the dependant (non-student child under 21 or student) notional tax offset
961.15. Reduced amounts of the dependant (non-student child under 21 or student) notional tax offset
961.20. Reductions to take account of the dependant's income

Subdivision 961-B--Dependant

961.50. What this Subdivision is about
961.55. Who is entitled to the notional tax offset
961.60. Amount of the dependant (sole parent of a non-student child under 21 or student) notional tax offset
961.65. Reductions to take account of change in circumstances

Division 974--Debt and equity interests

Subdivision 974-A--General

974.1. What this Division is about
974.5. Overview of Division
974.10. Object

Subdivision 974-B--Debt interests

974.15. Meaning of debt interest
974.20. The test for a debt interest
974.25. Exceptions to the debt test
974.30. Providing a financial benefit
974.35. Valuation of financial benefits--general rules
974.40. Valuation of financial benefits--rights and options to terminate early
974.45. Valuation of financial benefits--convertible interests
974.50. Valuation of financial benefits--value in present value terms
974.55. The debt interest and its issue
974.60. Debt interest arising out of obligations owed by a number of entities
974.65. Commissioner's power

Subdivision 974-C--Equity interests in companies

974.70. Meaning of equity interest in a company
974.75. The test for an equity interest
974.80. Equity interest arising from arrangement funding return through connected entities
974.85. Right or return contingent on aspects of economic performance
974.90. Right or return at discretion of company or connected entity
974.95. The equity interest

Subdivision 974-D--Common provisions

974.100.Treatment of convertible and converting interests
974.105.Effect of action taken in relation to interest arising from related schemes
974.110.Effect of material change
974.112.Determinations by Commissioner

Subdivision 974-E--Non-share distributions by a company

974.115.Meaning of non-share distribution
974.120.Meaning of non-share dividend
974.125.Meaning of non-share capital return

Subdivision 974-F--Related concepts

974.130.Financing arrangement
974.135.Effectively non-contingent obligation
974.140.Ordinary debt interest
974.145.Benchmark rate of return
974.150.Schemes
974.155.Related schemes
974.160.Financial benefit
974.165.Convertible and converting interests

Division 975--Concepts about companies

Subdivision 975-A--General

975.150.Position to affect rights in relation to a company
975.155.When is an entity a controller (for CGT purposes) of a company?
975.160.When an entity has an associate-inclusive control interest

Subdivision 975-G--What is a company's share capital account

975.300.Meaning of share capital account

Subdivision 975-W--Wholly-owned groups of companies

975.500.Wholly-owned groups
975.505.What is a 100% subsidiary?

Division 976--Imputation

976.1. Franked part of a distribution
976.5. Unfranked part of a distribution
976.10. The part of a distribution that is franked with an exempting credit
976.15. The part of a distribution that is franked with a venture capital credit

Division 977--Realisation events, and the gains and losses they realise for income tax purposes

977.5. Realisation event
977.10. Loss realised for income tax purposes
977.15. Gain realised for income tax purposes
977.20. Realisation event
977.25. Disposal of trading stock: loss realised for income tax purposes
977.30. Ending of an income year: loss realised for income tax purposes
977.35. Disposal of trading stock: gain realised for income tax purposes
977.40. Ending of an income year: gain realised for income tax purposes
977.50. Meaning of revenue asset
977.55. Loss or gain realised for income tax purposes

Division 980--Affordable housing

980.1. What this Division is about

Subdivision 980-A--Providing affordable housing

980.5. Providing affordable housing
980.10. Eligible community housing providers
980.15. Affordable housing certificates

PART 6-5--DICTIONARY DEFINITIONS

Division 995--Definitions

995.1. Definitions

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