Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) If:
(a) you requested the Commissioner to allow a longer period under:
(i) subsection 313 - 35(2) (for entering into a contract to purchase or construct a * residential premises); or
(ii) subsection 313 - 40(2) or 313 - 50(3) (for notifying the Commissioner of matters); and
(b) you are dissatisfied with:
(i) a decision under that subsection allowing a longer period; or
(ii) a decision the Commissioner makes not to allow a longer period;
you may object against the decision in the manner set out in Part IVC of the Taxation Administration Act 1953 .
(2) To avoid doubt, for the purposes of paragraph (e) of Schedule 1 to the Administrative Decisions (Judicial Review) Act 1977 , the making of a decision under a subsection mentioned in paragraph (1)(a) of this section is a decision forming part of the process of making an assessment of tax, and making a calculation of charge, under this Act.
Income Tax Assessment Act 1997
No. 38, 1997
Compilation No. 256
Compilation date: 1 January 2025
Includes amendments: Act No. 136, 2024 and Act No. 138, 2024
This compilation is in 12 volumes
Volume 1: sections 1 - 1 to 36 12 pt">- 55
Volume 2: sections 40 - 1 to 67 - 30
Volume 3: sections 70 - 1 to 121 12 pt">- 35
Volume 4: sections 122 - 1 to 197 12 pt">- 85
Volume 5: sections 200 - 1 to 253 - 15
Volume 6: sections 275 - 1 to 313 12 pt">- 85
Volume 7: sections 315 - 1 to 420 - 70
Volume 8: sections 615 - 1 to 721 - 40
Volume 9: sections 723 - 1 to 880 12p t">- 205
Volume 10: sections 900 - 1 to 995 - 1
Volume 11: Endnotes 1 to 3
Volume 12: Endnotes 4 and 5
Each volume has its own contents
About this compilation
This compilation
This is a compilation of the Income Tax Assessment Act 1997 that shows the text of the law as amended and in force on 1 January 2025 (the compilation date ).
The notes at the end of this compilation (the endnotes ) include information about amending laws and the amendment history of provisions of the compiled law.
Uncommenced amendments
The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.
Application, saving and transitional provisions for provisions and amendments
If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.
Editorial changes
For more information about any editorial changes made in this compilation, see the endnotes.
Modifications
If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.
Self - repealing provisions
If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.
Contents
Chapter 3--Specialist liability rules
Part 3 - 32--Co - operatives and mutual entities
Division 315--Demutualisation of private health insurers
Guide to Division 315
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
Rules for policy holders
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
Rules for demutualising health insurer
315 - 25 Demutualising health insurers to disregard capital gains and losses related to demutualisation
Rules for other entities
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
Guide to Division 316
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
Guide to Subdivision 316 - B
316 - 50 What this Subdivision is about
Gains and losses of members, insured entities and successors
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
Friendly society's gains and losses
316 - 75 Disregarding friendly society's capital gains and losses
Other entities' 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
Guide to Subdivision 316 - C
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
Guide to Subdivision 316 - D
316 - 150 What this Subdivision is about
Application
316 - 155 Lost policy holders trust
Effects of CGT events happening to interests and assets in 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
Guide to Subdivision 316 - F
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
Guide to Division 320
320 - 1 What this Division is about
Operative provisions
Subdivision 320 - A--Preliminary
320 - 5 Object of Division
Subdivision 320 - B--What is included in a life insurance company's assessable income
Guide to Subdivision 320 - B
320 - 10 What this Subdivision is about
Operative provisions
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
Guide to Subdivision 320 - C
320 - 50 What this Subdivision is about
Operative provisions
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
Guide to Subdivision 320 - D
320 - 130 What this Subdivision is about
320 - 131 Overview of Subdivision
General rules
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
Taxable income and tax loss of life insurance companies
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
Guide to Subdivision 320 - E
320 - 150 What this Subdivision is about
Operative provisions
320 - 155 Subdivisions 295 - I and 295 - J apply to companies that are RSA providers
Subdivision 320 - F--Complying superannuation asset pool
Guide to Subdivision 320 - F
320 - 165 What this Subdivision is about
Operative provisions
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
Guide to Subdivision 320 - H
320 - 220 What this Subdivision is about
Operative provisions
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
Guide to Subdivision 320 - I
320 - 300 What this Subdivision is about
Operative provisions
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 adjusted liability for incurred claims
321 - 15 Deduction for increase in adjusted liability for incurred claims
321 - 20 How the value of adjusted liability for incurred claims 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 adjusted liability for remaining coverage
321 - 55 Deduction for increase in adjusted liability for remaining coverage
321 - 60 How the value of adjusted liability for remaining coverage 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
Guide to Division 322
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
Guide to Subdivision 322 - B
322 - 20 What this Subdivision is about
Operative provisions
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
Guide to Division 328
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
Guide to Subdivision 328 - C
328 - 105 What this Subdivision is about
Operative provisions
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
Guide to Subdivision 328 - D
328 - 170 What this Subdivision is about
Operative provisions
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
Special rules about roll - overs
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 small and medium business entities
Guide to Subdivision 328 - E
328 - 280 What this Subdivision is about
Operative provisions
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
Guide to Subdivision 328 - F
328 - 350 What this Subdivision is about
Operative provisions
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
Guide to Subdivision 328 - G
328 - 420 What this Subdivision is about
Object of this Subdivision
328 - 425 Object of this Subdivision
Requirements for a roll - over under 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
Consequences of a roll - over under this Subdivision
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
Guide to Division 355
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. for decline in value of depreciating assets used for R&D activities
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
Guide to Subdivision 355 - G
355 - 430 What this Subdivision is about
Operative provisions
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
Guide to Subdivision 355 - H
355 - 455 What this Subdivision is about
Operative provisions
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
Guide to Subdivision 360 - A
360 - 5 What this Subdivision is about
Operative provisions
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
Refundable tax offset for Australian expenditure in making a film (location offset)
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 - 27 Minimum training expenditure requirement
376 - 28 Minimum training expenditure exemption--permanent film infrastructure
376 - 29 Minimum training expenditure exemption--training programs
376 - 30 Minister to determine a company's qualifying Australian production expenditure for the location offset
376 - 32 Minister may require information
Refundable tax offset for post, digital and visual effects production for a film (PDV 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
Refundable tax offset for Australian expenditure in making an Australian film (producer 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
Production expenditure--common rules
376 - 125 Production expenditure--general test
376 - 130 Production expenditure--special qualifying Australian production expenditure
376 - 135 Production expenditure--specific exclusions
Production expenditure--special rules for the location offset
376 - 140 Production expenditure--special rules for the location offset
Qualifying Australian production expenditure--common rules
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
Qualifying Australian production expenditure--special rules for the location offset and the PDV offset
376 - 165 Qualifying Australian production expenditure--special rules for the location offset and the PDV offset
Qualifying Australian production expenditure--special rules for the producer offset
376 - 170 Qualifying Australian production expenditure--special rules for the producer offset
Expenditure generally--common rules
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 Review 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 378--Digital games (tax offset for Australian expenditure on digital games)
Guide to Division 378
378 - 1 What this Division is about
Subdivision 378 - A--Tax offset for Australian expenditure in developing digital games
378 - 10 Company entitled to refundable tax offset for Australian expenditure incurred in developing digital games
378 - 15 Amount of digital games tax offset
378 - 20 Meaning of digital game
378 - 25 Arts Minister must issue certificate for the digital games tax offset
378 - 30 Arts Minister to determine a company's qualifying Australian development expenditure for the digital games tax offset
Subdivision 378 - B--Qualifying Australian development expenditure
378 - 35 Development expenditure
378 - 40 Qualifying Australian development expenditure
378 - 45 Expenditure incurred by prior companies in completing or porting a digital game
378 - 50 Expenditure to be worked out excluding GST
Subdivision 378 - C--Certificates for digital games tax offset
378 - 55 Single company or head company may apply for certificate
378 - 60 Notice of refusal to issue certificate
378 - 65 Issue of certificate
378 - 70 Revocation of certificate
378 - 75 Amendment of certificate
378 - 80 Amendment of assessments
Subdivision 378 - D--Review and other matters
378 - 85 Notice of decision or determination
378 - 90 Review of decisions by the Administrative Review Tribunal
378 - 95 Copy of digital game to be made available to the National Film and Sound Archive of Australia
378 - 100 Arts Minister may make rules about the digital games tax offset
378 - 105 Arts Minister may make rules establishing a Digital Games Tax Offset Advisory Board
378 - 110 Delegation by Arts Minister
378 - 115 Review of operation of this Division
Division 380--National Rental Affordability Scheme
Guide to Division 380
380 - 1 What this Division is about
Subdivision 380 - A--National Rental Affordability Scheme Tax Offset
NRAS certificates issued to individuals, corporate tax entities and superannuation funds
380 - 5 Claims by individuals, corporate tax entities and superannuation funds
NRAS certificates issued to NRAS approved participants
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
NRAS certificates issued to 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
Miscellaneous
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
Guide to Division 385
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
Guide to Subdivision 385 - E
385 - 90 What this Subdivision is about
385 - 95 Basic principles for elections under this Subdivision
Operative provisions
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
Guide to Division 392
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?
Guide to Subdivision 392 - B
392 - 30 What this Subdivision is about
Tax offset or extra income tax
392 - 35 Will you get a tax offset or have to pay extra income tax?
How to work out the comparison rate
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?
Guide to Subdivision 392 - C
392 - 60 What this Subdivision is about
392 - 65 What your averaging adjustment reflects
392 - 70 Working out your gross averaging amount
Your averaging adjustment
392 - 75 Working out your averaging adjustment
How to work out your averaging component
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
Guide to Division 393
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
Guide to Subdivision 393 - C
393 - 50 What this Subdivision is about
Operative provisions
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
Guide to Division 394
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
Guide to Division 405
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
Guide to Division 410
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
Guide to Division 415
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
Guide to Subdivision 415 - B
415 - 10 What this Subdivision is about
Uplift of tax losses
415 - 15 Uplift of tax losses of designated infrastructure project entities
415 - 20 Designated infrastructure project entity
Change of ownership of trusts and companies
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
Consolidated groups
415 - 45 Losses transferred to head companies of consolidated groups
Subdivision 415 - C--Designating infrastructure projects
Guide to Subdivision 415 - C
415 - 50 What this Subdivision is about
Designating infrastructure projects
415 - 55 Applications for designation
415 - 60 Dealing with applications
415 - 65 Provisional designation
415 - 70 Designation
Infrastructure project capital expenditure cap
415 - 75 Infrastructure project capital expenditure cap
415 - 80 Acceptance of estimates of infrastructure project capital expenditure
Miscellaneous
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
Guide to Division 417
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
Guide to Division 418
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
Entitlement to 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
Amount of junior minerals exploration incentive tax offset
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
Guide to Division 420
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
420 - 13 Meaning of primary producer 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
420 - 62 Primary producer registered emissions units
Subdivision 420 - E--Exclusivity of Division
420 - 65 Exclusivity of deductions etc.
420 - 70 Exclusivity of assessable income etc.
Table of Subdivisions
Guide to Division 315
315 - A Capital gains and losses connected with a demutualisation of a private health insurer to be disregarded
315 - B Cost base of certain shares and rights in private health insurers
315 - C Lost policy holders trust
315 - D Special cost base rules for certain shares and rights in holding companies
315 - E Special CGT rule for legal personal representatives and beneficiaries
315 - F Non - CGT consequences of demutualisation