Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 230.5

  (1)   You have a financial arrangement if you have one or more cash settlable legal or equitable rights and/or obligations to receive or provide a financial benefit.

  (2)   This Division does not apply to all financial arrangements. The main exceptions are if:

  (a)   you are:

  (i)   an individual; or

  (ii)   a superannuation entity or fund, managed investment scheme or an entity substantially similar to a managed investment scheme under foreign law with assets of less than $100 million; or

  (iii)   an ADI, securitisation vehicle or other financial sector entity with an aggregated turnover of less than $20 million; or

  (iv)   another entity with an aggregated turnover of less than $100 million, financial assets of less than $100 million and assets of less than $300 million;

    and either:

  (iva)   the arrangement is to end not more than 12 months after you start to have it; or

  (v)   the arrangement is not a qualifying security; or

  (b)   the arrangement is a financial arrangement under section   230 - 50 (equity interests etc.) and neither a fair value election, a hedging financial arrangement election nor an election to rely on financial reports applies to the arrangement.

Note:   Section   230 - 455 provides for the exceptions referred to in paragraph   (a).

Table of sections

Objects

230 - 10   Objects of this Division

Tax treatment of gains and losses from financial arrangements

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

Method to be applied to take account of gain or loss

230 - 40   Methods for taking gain or loss into account

Financial arrangement concept

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)

General 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