Commonwealth Numbered Acts

INCOME TAX ASSESSMENT ACT 1997

TABLE OF PROVISIONS

           Long Title

   1.1.    Short title  
   1.2.    Commencement  
   1.3.    Differences in style not to affect meaning  
   2.1.    The design  
   2.5.    The pyramid  
   2.10.   When defined terms are identified  
   2.15.   When terms are not identified  
   2.20.   Identifying the defined term in a definition  
   2.25.   Purposes  
   2.30.   Gaps in the numbering  
   2.35.   Non-operative material  
   2.40.   Guides  
   2.45.   Other material  
   3.1.    What this Act is about  
   3.5.    Annual income tax  
   3.10.   Your other obligations as a taxpayer  
   3.15.   Your obligations other than as a taxpayer  
   4.1.    Who must pay income tax  
   4.5.    Meaning of you  
   4.10.   How to work out how much income tax you must pay  
   4.15.   How to work out your taxable income  
   6.1.    Diagram showing relationships among concepts in this Division  
   6.5.    Operative provisions Income according to ordinary concepts (ordinary income)  
   6.10.   Other assessable income (statutory income)  
   6.15.   What is not assessable income  
   6.20.   Exempt income  
   6.25.   Relationships among various rules about ordinary income  
   8.1.    General deductions  
   8.5.    Specific deductions  
   8.10.   No double deductions  
   9.1.    List of entities  
   9.5.    Entities that work out their income tax by reference to something other than taxable income  
   10.5.   List of provisions about assessable income  
   11.1.   Overview  
   11.5.   Entities that are exempt, no matter what kind of ordinary or statutory income they have  
   11.10.  Ordinary or statutory income which is exempt, no matter whose it is  
   11.15.  Ordinary or statutory income which is exempt only if it is derived by certain entities  
   12.5.   List of provisions about deductions  
   13.1.   List of tax offsets  
   26.55.  Limit on deductions  
   28.1.   Guide to Division 28 What this Division is about  
   28.5.   Map of this Division  
   28.10.  Application of Division 28  
   28.12.  Car expenses  
   28.13.  Meaning of car expense  
   28.14.  Guide to Subdivision 28-B What this Subdivision is about  
   28.15.  Choosing among the 4 methods  
   28.20.  Operative provision Rules governing choice of method  
   28.25.  How to calculate your deduction  
   28.30.  Depreciation  
   28.35.  Substantiation  
   28.45.  How to calculate your deduction  
   28.50.  Eligibility  
   28.55.  Depreciation  
   28.60.  Substantiation  
   28.70.  How to calculate your deduction  
   28.75.  Eligibility  
   28.80.  Substantiation  
   28.90.  How to calculate your deduction  
   28.95.  Eligibility  
   28.100. Substantiation  
   28.105. Guide to Subdivision 28-G What this Subdivision is about  
   28.110. Steps for keeping a log book  
   28.115. Operative provisions Income years for which you need to keep a log book  
   28.120. Choosing the 12 week period for a log book  
   28.125. How to keep a log book  
   28.130. Replacing one car with another  
   28.135. Guide to Subdivision 28-H What this Subdivision is about  
   28.140. Operative provision How to keep odometer records for a car for a period  
   28.150. Retaining the log book for the retention period  
   28.155. Retaining odometer records  
   28.160. Guide to Subdivision 28-J What this Subdivision is about  
   28.165. Operative provisions Exception for particular cars taken on hire  
   28.170. Exception for particular cars used in particular ways  
   28.175. Further miscellaneous exceptions  
   28.180. Car expenses related to award transport payments  
   28.185. Application of Subdivision 28-J to PAYE earners and the entities that pay them  
   36.1.   Guide to Division 36 What this Division is about  
   36.10.  How to calculate a tax loss for an income year  
   36.15.  How to deduct tax losses  
   36.20.  Net exempt income  
   36.25.  Special rules about tax losses  
   36.30.  Guide to Subdivision 36-B What this Subdivision is about  
   36.45.  Operative provisions No deduction for tax loss incurred before bankruptcy  
   36.40.  Deduction for amounts paid for debts incurred before bankruptcy  
   36.45.  Limit on deductions for amounts paid  
   40.1.   Guide to Division 40 What this Division is about  
   40.5.   Map of Divisions 40 and 41  
   40.7.   Effect of this Division  
   40.10.  What expenditure qualifies?  
   40.15.  Who may deduct?  
   40.20.  How to work out the deduction  
   40.25.  Disposal, loss, destruction or termination of use: balancing adjustment  
   40.30.  Table of capital allowances  
   41.1.   Guide to Division 41 What this Division is about  
   41.5.   Summary and finding table  
   41.10.  Guide to Common rule 1 What this Common rule is about  
   41.15.  Operative provisions When is roll-over relief available?  
   41.20.  Disposals of property  
   41.25.  How are the balancing adjustment provisions affected?  
   41.30.  What is the effect of the roll-over on the transferor's and transferee's entitlement to a deduction?  
   41.35.  Subsequent applications of this Common rule-relief available even if subsequent transferor got no deduction  
   41.40.  Subsequent disposal-modify the balancing adjustment accordingly  
   41.45.  Commissioner may amend assessment after recoupment despite section 170 of the Income Tax Assessment Act 1936  
   41.65.  Non-arm's length transactions  
   41.85.  You are taken to be owner of property for purposes of certain anti-avoidance provisions  
   43.1.   Guide to Division 43 What this Division is about  
   43.2.   Key concepts used in this Division  
   43.5.   Guide to Subdivision 43-A What this Subdivision is about  
   43.10.  Operative provisions 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 body corporate to be registered under the Industry Research and Development Act  
   43.40.  Deduction for destruction of capital works  
   43.45.  Application of Division 41 common rules  
   43.50.  Links and signposts to other parts of the Act Links  
   43.55.  Anti-avoidance-arrangement etc. with tax-exempt entity  
   43.60.  Guide to Subdivision 43-B What this Subdivision is about  
   43.65.  Explanatory material  
   43.70.  Operative provisions What is construction expenditure?  
   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 Research and Development Board  
   43.105. Guide to Subdivision 43-C What this Subdivision is about  
   43.110. Explanatory material  
   43.115. Operative provisions 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  
   43.135. Guide to Subdivision 43-D What this Subdivision is about  
   43.140. Operative provisions Using your area in a deductible way  
   43.145. Using your area in the 4% manner  
   43.150. Meaning of industrial activities  
   43.155. Guide to Subdivision 43-E What this Subdivision is about  
   43.160. Operative provisions 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 research and development activities must be in connection with a business  
   43.200. Guide to Subdivision 43-F What this Subdivision is about  
   43.205. Explanatory material  
   43.210. Operative provisions 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  
   43.225. Guide to Subdivision 43-G What this Subdivision is about  
   43.230. Operative provisions Calculating undeducted construction expenditure-common step  
   43.235. Post-26 February 1992 undeducted construction expenditure  
   43.240. Pre-27 February 1992 undeducted construction expenditure  
   43.245. Guide to Subdivision 43-H What this Subdivision is about  
   43.250. Operative provisions The amount of the balancing deduction  
   43.255. Amounts received or receivable  
   43.260. Apportioning amounts received for destruction  
   165.1.  Guide to Division 165 What this Division is about  
   165.5.  Guide to Subdivision 165-A What this Subdivision is about  
   165.10. Operative provisions To deduct a tax loss  
   165.12. Company must maintain the same owners  
   165.13. Alternatively, company must carry on same business  
   165.15. Same people must control the voting power, or company must carry on same business  
   165.20. When company can deduct part of a tax loss  
   165.23. Guide to Subdivision 165-B What this Subdivision is about  
   165.25. Summary of this Subdivision  
   165.30. Flow chart showing the application of this Subdivision  
   165.35. When a company must work out its taxable income and tax loss under this Subdivision On a change of ownership, unless the company carries on the same business  
   165.37. Who has more than a 50% stake in the company during a period  
   165.40. On a change of control of voting power in the company, unless the company carries on the same business  
   165.45. Working out the company's taxable income First, divide the income year into periods  
   165.50. Next, calculate the notional loss or notional taxable income for each period  
   165.55. How to attribute deductions to periods  
   165.60. How to attribute assessable income to periods  
   165.65. How to calculate the company's taxable income for the income year  
   165.70. Working out the company's tax loss How to calculate the company's tax loss for the income year  
   165.75. Special rules that apply if the company is in partnership How to calculate the company's notional loss or notional taxable income for a period when the company was a partner  
   165.80. How to calculate the company's share of a partnership's notional loss or notional net income for a period if both entities have the same income year  
   165.85. How to calculate the company's share of a partnership's notional loss or notional net income for a period if the entities have different income years  
   165.90. Company's full year deductions include a share of partnership's full year deductions  
   165.150.The primary and alternative tests Who has more than 50% of the voting power in the company during a period  
   165.155.Who has rights to more than 50% of the company's dividends during a period  
   165.160.Who has rights to more than 50% of the company's capital distributions during a period  
   165.165.Rules about the primary test for a condition  
   165.175.Tests can be satisfied by a single person  
   165.180.Rules affecting the operation of the tests Arrangements affecting beneficial ownership of shares  
   165.185.Shares treated as never having carried rights  
   165.190.Shares treated as always having carried rights  
   165.195.Disregard redeemable shares  
   165.200.Rules do not affect totals of shares or rights  
   165.205.Death of beneficial owner  
   165.210.The test  
   166.1.  Guide to Division 166 What this Division is about  
   166.5.  How Subdivision 165-A applies to a listed public company  
   166.10. How Subdivision 165-A applies to a 100% subsidiary of a listed public company  
   166.15. Companies can choose that this Subdivision is not to apply to them  
   166.20. How Subdivision 165-B applies to a listed public company  
   166.25. How to work out the taxable income and tax loss  
   166.30. How Subdivision 165-B applies to 100% subsidiary of a listed public company  
   166.35. Companies can choose that this Subdivision is not to apply to them  
   166.140.Guide to Subdivision 166-D What this Subdivision is about  
   166.145.Substantial continuity of ownership Substantial continuity of ownership  
   166.150.The ownership tests Who has more than 50% of the voting power in the listed public company at a particular time  
   166.155.Who has rights to more than 50% of the listed public company's dividends at a particular time  
   166.160.Who has rights to more than 50% of the listed public company's capital distributions at a particular time  
   166.165.Rules affecting the operation of the ownership tests Rules in Division 165 apply  
   166.215.Guide to Subdivision 166-F What this Subdivision is about  
   166.220.Special tracing rules for listed public companies Shareholdings of less than 1% in the listed public company  
   166.225.Shareholdings of less than 1% in an interposed listed public company  
   166.230.Notional shareholder  
   166.235.Notional shareholder taken to have minimum voting control, dividend rights and capital rights  
   166.240.Voting, dividend and capital shareholding of less than 1%  
   166.245.Shares that are part of a substantial shareholding  
   166.250.When the rules in this Subdivision do not apply Limit on listed public company splitting its shares into different classes  
   166.255.If listed public company would not have otherwise passed the ownership tests  
   166.260.Guide to this Subdivision What this Subdivision is about  
   166.265.Special tracing rules for listed public companies When fund or special company is taken to control voting power  
   166.270.When fund or special company is taken to have rights to dividends and capital  
   170.1.  Guide to Subdivision 170-A What this Subdivision is about  
   170.5.  Basic principles for transferring tax losses  
   170.10. Effect of transferring a tax loss When a company can transfer a tax loss  
   170.15. Income company is taken to have incurred transferred loss  
   170.20. Who can deduct transferred loss  
   170.25. Tax treatment of payment for transferred tax loss  
   170.30. Conditions for transfer Companies must be in existence and members of the same wholly- owned group  
   170.35. The loss company  
   170.40. The income company  
   170.45. Maximum amount that can be transferred  
   170.50. Transfer by written agreement  
   170.55. Losses must be transferred in order they are incurred  
   170.60. Income company cannot transfer transferred tax loss  
   170.65. Effect of agreement to transfer more than can be transferred Agreement transfers as much as can be transferred  
   170.70. Amendment of assessments  
   175.1.  Guide to Division 175 What this Division is about  
   175.5.  When Commissioner can disallow deduction for tax loss  
   175.10. First case: income injected into company because of available tax loss  
   175.15. Second case: someone else obtains a tax benefit because of tax loss available to company  
   175.20. Income injected into company because of available deductions  
   175.25. Deduction injected into company because of available income  
   175.30. Someone else obtains a tax benefit because of a deduction or income available to company  
   175.35. Tax loss resulting from disallowed deductions  
   175.65. When a person has a shareholding interest in the company  
   195.1.  Guide to Subdivision 195-A What this Subdivision is about  
   195.5.  Working out a PDF's taxable income and tax loss Deductibility of PDF tax losses  
   195.10. PDF cannot transfer tax loss  
   195.15. Tax loss for year in which company becomes a PDF  
   330.1.  Guide to Division 330 What this Division is about  
   330.5.  How petroleum mining is treated  
   330.10. Diagram-the stages of mining  
   330.15. Deduction for exploration or prospecting expenditure  
   330.20. Meaning of exploration or prospecting  
   330.25. Meaning of minerals, petroleum and quarry materials  
   330.30. Meaning of eligible mining or quarrying operations  
   330.35. No deduction for amount "transferred" by seller of right or information  
   330.40. Election that section 330-15 not apply to plant  
   330.60. Genuine prospector exemption for ordinary income derived from the sale of rights to mine  
   330.80. Allowable capital expenditure is deductible  
   330.85. What is allowable capital expenditure?  
   330.90. Housing and welfare in mining  
   330.95. Expenditure that is not allowable capital expenditure  
   330.100.How much is deductible over how long?  
   330.105.Meaning of unrecouped expenditure  
   330.110.Expenditure that does not relate to a mining property, quarrying property or petroleum field  
   330.115.Apportioning between mining and quarrying  
   330.120.Resuming use of property for qualifying purposes  
   330.125.Each mining property, quarrying property or petroleum field is separate from any other  
   330.145.Guide to Subdivision 330-D What this Subdivision is about  
   330.150.Operative provisions Mining cash bidding payments  
   330.155.Meaning of mining cash bidding payment and mining authority  
   330.160.Exploration or prospecting cash bidding payments made when mining authority has been granted  
   330.165.Meaning of exploration or prospecting cash bidding payment and exploration or prospecting authority  
   330.170.Exploration or prospecting cash bidding payments made before mining authority has been granted  
   330.175.Meaning of entitlement to an eligible cash bidding amount  
   330.180.Transfer of entitlement to an eligible cash bidding amount  
   330.185.Limit on amount  
   330.190.Time limit on agreement  
   330.195.Agreement must be in writing and signed  
   330.200.When a mining authority is related to an exploration or prospecting authority  
   330.205.Meaning of retention authority  
   330.210.When a retention authority is related to an exploration or prospecting authority  
   330.215.Effect of renewal of authority  
   330.235.Buyer and seller may agree to include allowable capital expenditure  
   330.240.Meaning of mining, quarrying or prospecting right and mining, quarrying or prospecting information  
   330.245.Limit on amount that can be included in the agreement  
   330.250.Capital expenditure on buildings or other improvements only counts toward the limit if buyer gets rights to them  
   330.255.Time limit on agreement  
   330.260.Agreement must be signed and in writing  
   330.265.Election under subsection 88B(5) of the Income Tax Assessment Act 1936 voids agreement  
   330.270.Agreement results in seller giving up further deductions  
   330.275.Apportionment between mining and quarrying  
   330.295.Guide to Subdivision 330-F What this Subdivision is about  
   330.300.Operative provisions Limit on amounts deductible under Subdivision 330-C for the income year  
   330.305.Limit on amounts deductible under Subdivision 330-A for the income year  
   330.310.Excess amount deductible for the next income year  
   330.315.Election not to limit amounts deductible under Subdivision 330-A or 330-C  
   330.320.Excess amount not deductible for certain property  
   330.325.Excess amount not deductible if specified in a section 330- 235 agreement  
   330.330.Excess amount set off against income exempt under section 330-60  
   330.350.Payments of petroleum resource rent tax  
   330.370.Transport capital expenditure is deductible  
   330.375.Meaning of transport capital expenditure  
   330.380.Meaning of transport facility and public body  
   330.385.Meaning of mining or quarrying transport  
   330.390.Meaning of processed materials, treatment and concentration  
   330.395.How much is deductible over how long?  
   330.400.What if you stop using property for mining or quarrying transport?  
   330.405.Resuming use of property for mining or quarrying transport  
   330.410.Apportionment between mining and quarrying  
   330.415.No double deductions for port or other ship facility  
   330.435.Deduction for expenditure on rehabilitation  
   330.440.Meaning of rehabilitation  
   330.445.Meaning of ancillary activities and eligible building site  
   330.450.No deduction for certain expenditure  
   330.455.Property used for rehabilitation taken to be used for the purpose of producing assessable income  
   330.475.Guide to Subdivision 330-J What this Subdivision is about  
   330.480.Operative provisions When a balancing adjustment is required  
   330.485.How to do the adjustment  
   330.490.Meaning of termination value  
   330.495.Meaning of written down value  
   330.500.What if there is a disposal of part of an interest in property?  
   330.520.Partial change of ownership  
   330.540.Which Common rules apply  
   330.545.Modification to Common rule 1 (Roll-over relief for related entities)  
   330.547.Roll-over relief  
   330.550.Transferee inherits certain characteristics from transferor  
   330.555.Leases: subsection 88B(5) of the Income Tax Assessment Act 1936 election has no effect  
   330.560.Modification to Common rule 2 (Non-arm's length transactions)  
   330.580.Guide to Subdivision 330-M What this Subdivision is about  
   330.585.Operative provisions Recoupment of capital expenditure  
   330.590.Deductions under this Division take priority over other deductions  
   330.595.Mining, quarrying or prospecting-getting someone else to do the work  
   330.600.No deduction for petroleum income sharing  
   330.605.No deduction for paying transferees or sub-lessees of mining, quarrying or prospecting rights  
   375.800.Guide to Subdivision 375-G What this Subdivision is about  
   375.805.Operative provisions Does your tax loss have a film component?  
   375.810.What is a film loss?  
   375.815.Deductibility of film losses  
   375.820.Order in which tax losses are to be deducted  
   750.1.  What this Part is about  
   750.5.  What instalments of income tax do you have to pay?  
   750.10. Instalments collected periodically  
   750.15. Instalments collected in respect of particular transactions  
   750.20. What happens if your income tax is less than the instalments you have paid? How do you get a refund?  
   765.1.  Guide to Division 765 What this Division is about  
   765.5.  Where to find the rules about the withholding tax  
   766.1.  Guide to Division 766 What this Division is about  
   766.5.  Where to find the rules about the withholding tax  
   767.1.  Guide to Division 767 What this Division is about  
   767.5.  Where to find the rules about the tax  
   768.1.  Guide to Division 768 What this Division is about  
   768.5.  Where to find the rules about the withholding tax  
   785.1.  Guide to Division 785 What this Division is about  
   785.5.  Where to find the rules about Medicare levy  
   786.1.  Guide to Division 786 What this Division is about  
   786.5.  Where to find the rules about repaying HECS contributions  
   900.1.  Guide to Division 900 What this Division is about  
   900.5.  Application of the requirements of Division 900  
   900.10. Substantiation requirement  
   900.12. Application of Division 900 to PAYE earners and the entities that pay them  
   900.15. Getting written evidence  
   900.20. Keeping travel records  
   900.25. Retaining the written evidence and travel records  
   900.30. Meaning of work expense  
   900.35. Exception for small total of expenses  
   900.40. Exception for laundry expenses below a certain limit  
   900.45. Exception for work expense related to award transport payment  
   900.50. Exception for domestic travel allowance expenses  
   900.55. Exception for overseas travel allowance expenses  
   900.60. Exception for reasonable overtime meal allowance  
   900.65. Crew members on international flights need not keep travel records  
   900.70. Getting written evidence  
   900.75. Retaining the written evidence and odometer records  
   900.80. Getting written evidence  
   900.85. Keeping travel records  
   900.90. Retaining the written evidence and travel records  
   900.95. Meaning of business travel expense  
   900.100.Guide to Subdivision 900-E What this Subdivision is about  
   900.105.Operative provisions Ways of getting written evidence  
   900.110.Time limits  
   900.115.Written evidence from supplier  
   900.120.Written evidence of depreciation expense  
   900.125.Evidence of small expenses  
   900.130.Evidence of expenses considered otherwise too hard to substantiate  
   900.135.Evidence on a group certificate  
   900.140.Guide to Subdivision 900-F What this Subdivision is about  
   900.145.Purpose of a travel record  
   900.150.Operative provisions Recording activities in travel records  
   900.155.Showing which of your activities were income-producing activities  
   900.160.Guide to Subdivision 900-G What this Subdivision is about  
   900.165.The retention period  
   900.170.Operative provisions Extending the retention period if an expense is disputed  
   900.175.Commissioner may tell you to produce your records  
   900.180.How to comply with a notice  
   900.185.What happens if you don't comply  
   900.195.Commissioner's discretion to review failure to substantiate  
   900.200.Reasonable expectation that substantiation would not be required  
   900.205.What if your documents are lost or destroyed?  
   900.210.Guide to Subdivision 900-I What this Subdivision is about  
   900.215.Operative provisions Deducting an expense related to an award transport payment  
   900.220.Definition of award transport payment  
   900.225.Substituted industrial instruments  
   900.230.Changes to industrial instruments applied for before 29 October 1986  
   900.235.Changes to industrial instruments solely referable to matters in the instrument  
   900.240.Deducting in anticipation of receiving award transport payment  
   900.245.Effect of exception in this Subdivision on exception for small total of expenses  
   900.250.Effect of exception in this Subdivision on methods of calculating car expense deductions  
   909.1.  Regulations  
   950.100. What forms part of this Act  
   950.105.What does not form part of this Act  
   950.150.Guides, and their role in interpreting this Act  
   960.100.Entities  
   960.220.Meaning of trading  
   960.225.Abnormal trading  
   960.230.Abnormal trading-5% of shares or units in one transaction  
   960.235.Abnormal trading-suspected 5% of shares or units in a series of transactions  
   960.240.Abnormal trading-suspected acquisition or merger  
   960.245.Abnormal trading-20% of shares or units traded over 60 day period  
   975.100.When a company is in existence  
   975.150.Position to affect rights in relation to a company  
   975.500.Wholly-owned groups  
   975.505.What is a 100% subsidiary?  
   995.1.  Definitions  
            
           (Assented to 17 April 1997)