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INCOME TAX ASSESSMENT ACT 1997 - SECT 36.55

Converting excess franking offsets into tax loss

Excess franking offsets

  (1)   An entity that is a * corporate tax entity at any time during an income year has an amount of excess franking offsets for that year if:

  (a)   the total amount of * tax offsets to which the entity is entitled for that year under Division   207 and Subdivision   210 - H (except those that are subject to the refundable tax offset rules because of section   67 - 25);

exceeds:

  (b)   the amount of income tax that the entity would have to pay on its taxable income for that year if:

  (i)   it did not have those tax offsets; and

  (ii)   it did not have any tax offsets that are subject to the tax offset carry forward rules or the refundable tax offset rules; and

  (iii)   it did not have any tax offset under section   205 - 70;

    but had all its other tax offsets.

The excess is the amount of excess franking offsets .

Note:   Division   65 sets out the tax offset carry forward rules. Division   67 sets out which tax offsets are subject to the refundable tax offset rules.

Example:   For the 2017 - 18 income year, Company E (which is not a base rate entity) has:

  The tax offset of $60 from the franking credit is not stated in Division   67 to be subject to the refundable tax offset rules.

  Disregarding the tax offset of $60 from the franking credit, the amount of income tax that Company E would have to pay is $30:

  Start formula open bracket open bracket $140 plus $60 close bracket minus $100 close bracket times 30% end formula

  This amount is $30 less than the tax offset of $60. Company E therefore has an amount of excess franking offsets of $30 for that year.

How to work out the amount of the tax loss

  (2)   For the purposes of this Act, if:

  (a)   an entity has an amount of * excess franking offsets for an income year; and

  (b)   the result of applying the following method statement is a positive amount;

then:

  (c)   the entity is taken to have a * tax loss for that year equal to that positive amount (instead of an amount of tax loss worked out under section   36 - 10, 165 - 70, 175 - 35 or 701 - 30); and

  (d)   that year is taken to be a * loss year for the entity if the entity would not otherwise have a tax loss for that year.

Method statement

Step 1.   Work out the amount (if any) that would have been the entity's * tax loss for that year under section   36 - 10, 165 - 70, 175 - 35 or 701 - 30 if the entity's * net exempt income for that year (if any) were disregarded.

  Note:   See section   36 - 20 for the calculation of net exempt income.

Step 2.   Divide the amount of * excess franking offsets by the entity's * corporate tax rate for imputation purposes for that year.

Step 3.   Add the results of steps 1 and 2.

Step 4.   Reduce the result of step 3 by the entity's * net exempt income for that year (if any).

  The result of this step is taken to be the entity's * tax loss for that year. However, if the result of this step is nil or a negative amount, the company does not have any tax loss for that year.

Example:   Assume that company E did not derive any exempt income for the 2017 - 2018 income year and that it would not otherwise have any tax loss for that year under section   36 - 10, 165 - 70, 175 - 35 or 701 - 30.

  Applying the method statement, the amount of excess franking offsets of $30 generates a tax loss of $100 for that year, which can be deducted in a later income year under section   36 - 15 or 36 - 17.

  (a)   is made to the entity or a fund, authority or institution it operates; and

  (b)   is of a kind that the giver can deduct under Subdivision   30 - A.

Generally, you can deduct certain contributions and gifts to political parties, independent candidates and members.

Contributions and gifts must be at least $2 and there is a limit on the total amount that you can deduct.

You can deduct an amount if you enter into a conservation covenant over land that you own and you satisfy certain conditions.

The amount you can deduct is the difference between the market value of the land just before and after you enter into the covenant.

This Division prevents losses of individuals from non - commercial business activities being offset against other assessable income in the year the loss is incurred. The loss is deferred.

It sets out an income requirement and a series of tests to determine whether a business activity is treated as being non - commercial.

The deferred losses may be offset in later years against profits from the activity. They may also be offset against other income if the income requirement and one of the other tests are satisfied, or if the Commissioner exercises a discretion.

Method statement

Step 1.   Work out the amount (if any) that would have been the entity's * tax loss for that year under section   36 - 10, 165 - 70, 175 - 35 or 701 - 30 if the entity's * net exempt income for that year (if any) were disregarded.

  Note:   See section   36 - 20 for the calculation of net exempt income.

Step 2.   Divide the amount of * excess franking offsets by the entity's * corporate tax rate for imputation purposes for that year.

Step 3.   Add the results of steps 1 and 2.

Step 4.   Reduce the result of step 3 by the entity's * net exempt income for that year (if any).

  The result of this step is taken to be the entity's * tax loss for that year. However, if the result of this step is nil or a negative amount, the company does not have any tax loss for that year.

 

Commonwealth Coat of Arms of Australia

Income Tax Assessment Act 1997

No.   38, 1997

Compilation No.   251

Compilation date:   15 September 2024

Includes amendments:   Act No. 75, 2023

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:   Endnote 4

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 15 September 2024 (the compilation date ).

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

Uncommenced amendments

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

Application, saving and transitional provisions for provisions and amendments

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

Editorial changes

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

Modifications

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

Self - repealing provisions

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

 

 

 

Contents

Chapter   2--Liability rules of general application

Part   2 - 10--Capital allowances: rules about deductibility of capital expenditure

Division   40--Capital allowances

Guide to Division   40

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

Guide to Subdivision   40 - B

40 - 20   What this Subdivision is about

Operative provisions

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

Guide to Subdivision   40 - C

40 - 170   What this Subdivision is about

Operative provisions

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

Guide to Subdivision   40 - D

40 - 280   What this Subdivision is about

Operative provisions

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

Guide to Subdivision   40 - E

40 - 420   What this Subdivision is about

Operative provisions

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

Guide to Subdivision   40 - F

40 - 510   What this Subdivision is about

Operative provisions

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

Guide to Subdivision   40 - G

40 - 625   What this Subdivision is about

Operative provisions

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

Guide to Subdivision   40 - H

40 - 725   What this Subdivision is about

Operative provisions

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

Guide to Subdivision   40 - I

40 - 825   What this Subdivision is about

Operative provisions

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

Guide to Subdivision   40 - J

40 - 1000   What this Subdivision is about

Operative provisions

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

Guide to Subdivision   40 - K

40 - 1095   What this Subdivision is about

Farm - in farm - out arrangements and exploration benefits

40 - 1100   Meaning of farm - in farm - out arrangement and exploration benefit

Consequences for transferors

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

Consequences for transferees

40 - 1130   Consequences of certain exploration benefits provided under farm - in farm - out arrangements

Division   41--Additional deduction for certain new business investment

Guide to Division   41

41 - 1   What this Division is about

Operative provisions

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

Guide to Division   43

43 - 1   What this Division is about

43 - 2   Key concepts used in this Division

Subdivision   43 - A--Key operative provisions

Guide to Subdivision   43 - A

43 - 5   What this Subdivision is about

Operative provisions

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

Guide to Subdivision   43 - B

43 - 60   What this Subdivision is about

43 - 65   Explanatory material

Operative provisions

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

Guide to Subdivision   43 - C

43 - 105   What this Subdivision is about

43 - 110   Explanatory material

Operative provisions

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

Guide to Subdivision   43 - D

43 - 135   What this Subdivision is about

Operative provisions

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

Guide to Subdivision   43 - E

43 - 155   What this Subdivision is about

Operative provisions

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

Guide to Subdivision   43 - F

43 - 200   What this Subdivision is about

43 - 205   Explanatory material

Operative provisions

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

Guide to Subdivision   43 - G

43 - 225   What this Subdivision is about

Operative provisions

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

Guide to Subdivision   43 - H

43 - 245   What this Subdivision is about

Operative provisions

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

Guide to Division   45

45 - 1   What this Division is about

Operative provisions

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

Guide to Subdivision   50 - B

50 - 100   What this Subdivision is about

Endorsing charitable entities as exempt from income tax

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

Guide to Division   52

52 - 1   What this Division is about

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

Guide to Subdivision   52 - A

52 - 5   What this Subdivision is about

Operative provisions

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

Guide to Subdivision   52 - B

52 - 60   What this Subdivision is about

Operative provisions

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 (Transitional Provisions and Consequential Amendments) Act 1986

Guide to Subdivision   52 - C

52 - 100   What this Subdivision is about

Operative provisions

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

Guide to Subdivision   52 - CA

52 - 112   What this Subdivision is about

Operative provisions

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 (Treatment) Act 2006

52 - 117   Payments of travelling expenses and pharmaceutical supplement are exempt

Subdivision   52 - CC--Exempt payments under the Treatment Benefits (Special Access) Act 2019

52 - 120   Payments of travelling expenses and pharmaceutical supplement are exempt

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

Guide to Subdivision   52 - E

52 - 130   What this Subdivision is about

Operative provisions

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 (Family Assistance) (Administration) Act 1999

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

Guide to Division   53

53 - 1   What this Division is about

Operative provisions

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

Guide to Division   54

54 - 1   What this Division is about

Subdivision   54 - A--Definitions

Operative provisions

54 - 5   Definitions

54 - 10   Meaning of structured settlement and structured order

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

Operative provisions

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

Operative provisions

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

Operative provisions

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

Guide to Division   55

55 - 1   What this Division is about

Operative provisions

55 - 5   Occupational superannuation payments

55 - 10   Education entry payments

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

Guide to Division   58

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

Guide to Division   59

59 - 1   What this Division is about

Operative provisions

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 (invalid and carer) tax offset

Guide to Subdivision   61 - A

61 - 1   What this Subdivision is about

Object of this Subdivision

61 - 5   Object of this Subdivision

Entitlement to the dependant (invalid and carer) tax offset

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

Amount of the dependant (invalid and carer) tax offset

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

Guide to Subdivision   61 - D

61 - 100   What this Subdivision is about

Operative provisions

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

Guide to Subdivision   61 - G

61 - 200   What this Subdivision is about

Operative provisions

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 (lump sum payments in arrears)

Guide to Subdivision   61 - L

61 - 575   What this Subdivision is about

Operative provisions

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

Guide to Subdivision   61 - N

61 - 695   What this Subdivision is about

Operative provisions

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

Guide to Subdivision   61 - P

61 - 750   What this Subdivision is about

Operative provisions

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

Guide to Division   63

63 - 1   What this Division is about

63 - 10   Priority rules

Division   65--Tax offset carry forward rules

Guide to Division   65

65 - 10   What this Division is about

Operative provisions

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

Guide to Division   67

67 - 10   What this Division is about

Operative provisions

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

 

Table of Subdivisions

  Guide to Division   40

40 - A   Objects of Division

40 - B   Core provisions

40 - C   Cost

40 - D   Balancing adjustments

40 - E   Low - value and software development pools

40 - F   Primary production depreciating assets

40 - G   Capital expenditure of primary producers and other landholders

40 - H   Capital expenditure that is immediately deductible

40 - I   Capital expenditure that is deductible over time

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

40 - K   Farm - in farm - out arrangements



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