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INCOME TAX ASSESSMENT ACT 1997 - SECT 67.30

Refundable tax offsets--R&D

  (1)   A * tax offset to which an * R&D entity is entitled under section   355 - 100 (about R&D) for an income year is subject to the refundable tax offset rules if the amount of the tax offset is worked out in accordance with item   1 of the table in subsection   355 - 100(1) (disregarding subsection   355 - 100(3)).

Note:   Otherwise, the tax offset will be a non - refundable tax offset (see item   35 of the table in subsection   63 - 10(1)).

  (2)   Without limiting its effect apart from this subsection, subsection   (1) also has the effect it would have if:

  (a)   subsection   (3) had not been enacted; and

  (b)   the reference in subsection   (1) to an * R&D entity were, by express provision, confined to an R&D entity that:

  (i)   is a * constitutional corporation; or

  (ii)   has its registered office (within the meaning of the Corporations Act 2001 ) or principal place of business (within the meaning of that Act) located in a Territory.

  (3)   Without limiting its effect apart from this subsection, subsection   (1) also has the effect it would have if:

  (a)   subsection   (2) had not been enacted; and

  (b)   this Act applied so that * tax offsets under section   355 - 100 could only be worked out in respect of * R&D activities conducted or to be conducted:

  (i)   solely in a Territory; or

  (ii)   solely outside of Australia; or

  (iii)   solely in a Territory and outside of Australia; or

  (iv)   for the dominant purpose of supporting * core R&D activities conducted, or to be conducted, solely in a Territory.

Method statement

Step 1.   Work out the * supplementary amount of the payment.

  Note:   The supplementary amount is also exempt and is worked out under section   52 - 15.

Step 2.   Subtract the * supplementary amount from the amount of the payment.

Step 3.   Work out what would have been the amount of the payment if your partner had not died.

Step 4.   Work out what would have been the * supplementary amount of the payment if your partner had not died.

Step 5.   Subtract the amount at Step 4 from the amount at Step 3.

Step 6.   Subtract the amount at Step 5 from the amount at Step 2: the result is the tax - free amount .

Method statement

Step 1.   Work out the payments under the Social Security Act 1991 that would have become due to you during the bereavement lump sum period if:

  (a)   your partner had not died; and

  (b)   your partner had been under * pension age; and

  (c)   immediately before your partner died, you and your partner had been neither an illness separated couple nor a respite care couple.

Step 2.   Work out how much of those payments would have been exempt in those circumstances.

Step 3.   Work out the payments under the Social Security Act 1991 or Part   III of the Veterans' Entitlements Act 1986 that would have become due to your partner during the bereavement lump sum period if:

  (a)   your partner had not died; and

  (b)   immediately before your partner died, you and your partner were neither an illness separated couple nor a respite care couple;

  even if the payments would not have been exempt.

Step 4.   Total the payments worked out at Steps 2 and 3: the result is the tax - free amount .

Method statement

Step 1.   Work out the payments under the Social Security Act 1991 that would have become due to you during the bereavement lump sum period if:

  (a)   your partner had not died; and

  (b)   your partner had been under * pension age; and

  (c)   immediately before your partner died, you and your partner had been neither an illness separated couple nor a respite care couple.

Step 2.   Work out how much of those payments would have been exempt in those circumstances.

Step 3.   Work out the payments under the Social Security Act 1991 that would have become due to your partner during the bereavement lump sum period if your partner had not died, even if the payments would not have been exempt.

Step 4.   Total the payments worked out at Steps 2 and 3: the result is the tax - free amount .

Method statement

Step 1.   Work out the payments under the Social Security Act 1991 that would have become due to you during the bereavement lump sum period if:

  (a)   the care receiver had not died; and

  (b)   the care receiver had been under * pension age.

Step 2.   Work out how much of those payments would have been exempt in those circumstances.

Step 3.   Work out the payments under the Social Security Act 1991 that would have become due to the care receiver during the bereavement lump sum period if the care receiver had not died, even if the payments would not have been exempt.

Step 4.   Total the payments worked out at Steps 2 and 3: the result is the tax - free amount .

  (a)   the payments under the Veterans' Entitlements Act 1986 that are wholly or partly exempt from income tax; and

  (b)   any special circumstances, conditions or exceptions that apply to a payment in order for it to be exempt; and

  (c)   how to work out how much of a payment is exempt.

  (a)   the payments made because of the Veterans' Entitlements (Transitional Provisions and Consequential Amendments) Act 1986 that are wholly or partly exempt from income tax; and

  (b)   any special circumstances, conditions or exceptions that apply to a payment in order for it to be exempt; and

  (c)   how to work out how much of a payment is exempt.

  (a)   the payments under the Military Rehabilitation and Compensation Act 2004 that are wholly or partly exempt from income tax; and

  (b)   any special circumstances, conditions or exceptions that apply to a payment in order for it to be exempt; and

  (c)   how to work out how much of a payment is exempt.

  (a)   the payments under the ABSTUDY scheme that are wholly or partly exempt from income tax; and

  (b)   any special circumstances, conditions or exceptions that apply to a payment in order for it to be exempt; and

  (c)   how to work out how much of a payment is exempt.

Method statement

Step 1.   Work out the * supplementary amount of the payment.

  Note:   The supplementary amount is also exempt and is worked out under section   52 - 132.

Step 2.   Subtract the * supplementary amount from the amount of the payment.

Step 3.   Work out what would have been the amount of the payment if your partner had not died.

Step 4.   Work out what would have been the * supplementary amount of the payment if your partner had not died.

Step 5.   Subtract the amount at Step 4 from the amount at Step 3.

Step 6.   Subtract the amount at Step 5 from the amount at Step 2: the result is the tax - free amount .

Method statement

Step 1.   Work out the payments under the ABSTUDY scheme that would have become due to you during the bereavement lump sum period if:

  (a)   your partner had not died; and

  (b)   your partner had been under pension age; and

  (c)   immediately before your partner died, you and your partner had been neither an illness separated couple nor a respite care couple.

Step 2.   Work out how much of those payments would have been exempt in those circumstances.

Step 3.   Work out the payments under the ABSTUDY scheme or the Social Security Act 1991 that would have become due to your partner during the bereavement lump sum period if your partner had not died, even if the payments would not have been exempt.

Step 4.   Total the payments worked out at Steps 2 and 3: the result is the tax - free amount .

  (a)   about various payments that are wholly or partly exempt from income tax; and

  (b)   any special conditions that apply to a payment in order for it to be exempt; and

  (c)   how to work out how much of a payment is exempt.

This Division sets out special rules that apply in calculating deductions for the decline in value of depreciating assets and balancing adjustments for assets previously owned by an exempt entity if the assets:

ï‚·          continue to be owned by that entity after the entity becomes taxable; or

ï‚·          are acquired from that entity, in connection with the acquisition of a business, by a purchaser that is a taxable entity.

There is a choice of 2 methods for each depreciating asset:

ï‚·          the notional written down value method; and

ï‚·          the undeducted pre - existing audited book value method.

You may be entitled to a tax offset if you:

  (a)   are a lower - income earner; or

  (b)   are the trustee of a trust who is liable to be assessed in respect of a share of the trust's net income to which a beneficiary is presently entitled.

  (a)   Medicare levy surcharge is payable by you for the current year; and

  (b)   a substantial lump sum was paid to you in the current year; and

  (c)   the lump sum accrued in whole or in part   in a previous year.

The amount of the offset is the amount of additional Medicare levy surcharge payable by you for the current year because of your lump sums and your spouse's lump sums.

Alternatively, you may get a tax offset under this Subdivision if your spouse gets a tax offset under this Subdivision. The amount of the offset is the amount of additional Medicare levy surcharge payable by you for the current year because of your spouse's lump sums.

  (a)   the voyage is made by a vessel for which the company, or another entity, has a certificate under the Shipping Reform (Tax Incentives) Act 2012 ; and

  (b)   the company employs or engages the seafarer on such voyages for at least 91 days in the income year.

This Division sets out the rules about carrying forward excess tax offsets to later income years.

You can only carry forward certain tax offsets.

Before you can apply a tax offset to reduce the amount of income tax that you will pay in a later year, you must apply it to reduce certain amounts of net exempt income.

The same rules that prevent companies from utilising certain losses of earlier income years prevent companies from applying tax offsets that they have carried forward.

 

Commonwealth Coat of Arms of Australia

Income Tax Assessment Act 1997

No.   38, 1997

Compilation No.   248

Compilation date:   1 January 2024

Includes amendments:   Act No. 40, 2023, Act No. 61, 2023, Act No. 69, 2023, Act No. 101, 2023 and Act No. 103, 2023

Registered:   15 January 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; font-weight:bold">- 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 1 January 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 - 25--Trading stock

Division   70--Trading stock

Guide to Division   70   1

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

General rules  

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

Special valuation rules

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

Guide to Subdivision   70 - D

70 - 75   What this Subdivision is about

70 - 80   Why the rules in this Subdivision are necessary

Operative provisions

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

Guide to Division   80   23

80 - 1   What this Division is about

Operative provisions

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

Guide to Division   82   26

82 - 1   What this Division is about

Subdivision   82 - A--Employment termination payments: life benefits

Guide to Subdivision   82 - A

82 - 5   What this Subdivision is about

Operative provisions

82 - 10   Taxation of life benefit termination payments

Subdivision   82 - B--Employment termination payments: death benefits

Guide to Subdivision   82 - B

82 - 60   What this Subdivision is about

Operative provisions

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

Guide to Subdivision   82 - C

82 - 125   What this Subdivision is about

Operative provisions

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

Guide to Division   83   41

83 - 1   What this Division is about

Subdivision   83 - A--Unused annual leave payments

Guide to Subdivision   83 - A

83 - 5   What this Subdivision is about

Operative provisions

83 - 10   Unused annual leave payment is assessable

83 - 15   Entitlement to tax offset

Subdivision   83 - B--Unused long service leave payments

Guide to Subdivision   83 - B

83 - 65   What this Subdivision is about

General  

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

Employment wholly full - time or wholly part - time

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

Employment partly full - time and partly part - time

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

Long service leave taken at less than full pay

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

Guide to Subdivision   83 - C

83 - 165   What this Subdivision is about

Operative provisions

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

Guide to Subdivision   83 - D

83 - 230   What this Subdivision is about

Operative provisions

83 - 235   Termination payments tax free--foreign resident period

83 - 240   Termination payments tax free--Australian resident period

Subdivision   83 - E--Other payments

Guide to Subdivision   83 - E

83 - 290   What this Subdivision is about

Operative provisions

83 - 295   Termination payments made more than 12 months after termination etc.

Division   83A--Employee share schemes

Guide to Division   83A

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

Guide to Subdivision   83A - B

83A - 15   What this Subdivision is about

Operative provisions

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

Guide to Subdivision   83A - C

83A - 100   What this Subdivision is about

Main provisions

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

Takeovers and restructures

83A - 130   Takeovers and restructures

Subdivision   83A - D--Deduction for employer

Guide to Subdivision   83A - D

83A - 200   What this Subdivision is about

Operative provisions

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

Guide to Part   2 - 42   87

84 - 1   What this Part   is about

Operative provisions

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

Guide to Division   85   89

85 - 1   What this Division is about

Operative provisions

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

Guide to Division   86   94

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

Guide to Division   87   109

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

General overview

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

Step 1--Have you made a capital gain or a capital loss?

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?

Step 2--Work out the amount of the capital gain or loss

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

Step 3--Work out your net capital gain or loss for the income year

100 - 50   How to work out your net capital gain or loss

100 - 55   How do you comply with CGT?

Keeping records for CGT purposes

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

Guide to Division   102   140

102 - 1   What this Division is about

102 - 3   Concessions in working out your net capital gain

Operative provisions

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

Guide to Division   103   149

103 - 1   What this Division is about

Operative provisions

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

Guide to Division   104   152

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

Guide to Division   106   252

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

Guide to Division   108   258

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

Guide to Subdivision   108 - D

108 - 50   What this Subdivision is about

Operative provisions

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

Guide to Division   109   271

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

Guide to Division   110   286

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

What does not form part of the cost base

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

Guide to Division   112   308

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

Guide to Division   115   351

115 - 1   What this Division is about

Subdivision   115 - A--Discount capital gains

What is a discount capital gain?

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

What are not discount capital gains?

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

Guide to Subdivision   115 - C

115 - 200   What this Division is about

Operative provisions

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

Guide to Subdivision   115 - D

115 - 275   What this Subdivision is about

Operative provisions

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

Guide to Division   116   392

116 - 1   What this Division is about

116 - 5   General rules

116 - 10   Modifications to general rules

General rules  

116 - 20   General rules about capital proceeds

Modifications to general rules

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

Special rules  

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

Guide to Division   118   414

118 - 1   What this Division is about

Subdivision   118 - A--General exemptions

Exempt assets  

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

Anti - overlap provisions

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

Exempt or loss - denying transactions

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

Boat capital gains

118 - 80   Reduction of boat capital gain

Special disability trusts

118 - 85   Special disability trusts

Subdivision   118 - B--Main residence

Guide to Subdivision   118 - B

118 - 100   What this Subdivision is about

118 - 105   Map of this Subdivision

Basic case and concepts

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

Rules that may extend the exemption

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

Rules that may limit the exemption

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

Roll - overs under Subdivision   126 - A

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

Partial exemption rules

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

Dwellings acquired from deceased estates

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

Special disability trusts

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

Compulsory acquisitions of adjacent land only

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

Guide to Subdivision   118 - F

118 - 400   What this Subdivision is about

Operative provisions

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: investment by superannuation funds for foreign residents

Guide to Subdivision   118 - G

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

Guide to Division   121   530

121 - 10   What this Division is about

Operative provisions

121 - 20   What records you must keep

121 - 25   How long you must retain the records

121 - 30   Exceptions

121 - 35   Asset register entries

Table of Subdivisions

  Guide to Division   70

70 - A   What is trading stock

70 - B   Acquiring trading stock

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

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

70 - E   Miscellaneous


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