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INCOME TAX ASSESSMENT ACT 1997 !!!The following amendments (No. 147, 2005 and No. 160, 2005 and No. 161, 2005 and No. 162, 2005 and No. 13, 2006 and No. 17, 2006 and No. 32, 2006 and No. 41, 2006 and No. 46, 2006 and No. 55, 2006 and No. 58, 2006 and No. 65, 2006 and No. 73, 2006 and No. 80, 2006 and No. 82, 2006 and No. 100, 2006 and No. 136, 2006) have not been incorporated. - List of Sections

Section

Compilation Information

Contents

Long Title

INCOME TAX ASSESSMENT ACT 1997
Chapter 1—Introduction and core provisions

INCOME TAX ASSESSMENT ACT 1997
Part 1-1—Preliminary

INCOME TAX ASSESSMENT ACT 1997
Division 1—Preliminary

1-1. Short title [ see Note 1]
1-2. Commencement
1-3. Differences in style not to affect meaning
INCOME TAX ASSESSMENT ACT 1997
Part 1-2—A Guide to this Act

INCOME TAX ASSESSMENT ACT 1997
Division 2—How to use this Act

INCOME TAX ASSESSMENT ACT 1997
Subdivision 2-A—How to find your way around


2-1. The design
INCOME TAX ASSESSMENT ACT 1997
Subdivision 2-B—How the Act is arranged


2-5. The pyramid
INCOME TAX ASSESSMENT ACT 1997
Subdivision 2-C—How to identify defined terms and find the
definitions

2-10. When defined terms are identified
2-15. When terms are not identified
2-20. Identifying the defined term in a definition
INCOME TAX ASSESSMENT ACT 1997
Subdivision 2-D—The numbering system

2-25. Purposes
2-30. Gaps in the numbering
INCOME TAX ASSESSMENT ACT 1997
Subdivision 2-E—Status of Guides and other non-operative
material

2-35. Non-operative material
2-40. Guides
2-45. Other material
INCOME TAX ASSESSMENT ACT 1997
Division 3—What this Act is about

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
INCOME TAX ASSESSMENT ACT 1997
Part 1-3—Core provisions

INCOME TAX ASSESSMENT ACT 1997
Division 4—How to work out the income tax payable on your
taxable income


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
4-25. Special provisions for working out your basic income tax liability
INCOME TAX ASSESSMENT ACT 1997
Division 6—
Assessable
income and exempt income


INCOME TAX ASSESSMENT ACT 1997
Guide to Division 6

6-1. Diagram showing relationships among concepts in this Division
INCOME TAX ASSESSMENT ACT 1997
Operative provisions


6-5. 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
6-23. Non-assessable non-exempt income
6-25. Relationships among various rules about ordinary income
INCOME TAX ASSESSMENT ACT 1997
Division 8—
Deductions


8-1. General deductions
8-5. Specific deductions
8-10. No double deductions
INCOME TAX ASSESSMENT ACT 1997
Part 1-4—Checklists of what is covered by concepts used in the
core provisions

INCOME TAX ASSESSMENT ACT 1997
Division 9—Entities that must pay income tax

9-1A. Effect of this Division
9-1. List of entities
9-5. Entities that work out their income tax by reference to something other than taxable income
INCOME TAX ASSESSMENT ACT 1997
Division 10—
Particular
kinds of assessable income


10-1. Effect of this Division
10-5. List of provisions about assessable income
INCOME TAX ASSESSMENT ACT 1997
Division 11—Particular kinds of non-assessable income


INCOME TAX ASSESSMENT ACT 1997
Subdivision 11-A—Lists of classes of exempt
income

11-1A.Effect of this Subdivision
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
INCOME TAX ASSESSMENT ACT 1997
Subdivision 11-B—Particular kinds of non-assessable
non-exempt income

11-50.Effect of this Subdivision
11-55.List of non-assessable non-exempt income provisions
INCOME TAX ASSESSMENT ACT 1997
Division 12—Particular kinds of deductions


12-1. Effect of this Division
12-5. List of provisions about deductions
INCOME TAX ASSESSMENT ACT 1997
Division 13—Tax offsets


13-1A.Effect of this Division
13-1. List of tax offsets
INCOME TAX ASSESSMENT ACT 1997
Chapter 2—Liability rules of general application

INCOME TAX ASSESSMENT ACT 1997
Part 2-1—Assessable income

INCOME TAX ASSESSMENT ACT 1997
Division 15—Some items of assessable income


INCOME TAX ASSESSMENT ACT 1997
Guide to Division 15


15-1. What this Division is about
INCOME TAX ASSESSMENT ACT 1997
Operative provisions


15-3. Return to work payments
15-5. Accrued leave transfer payments
15-10.Bounties and subsidies
15-15.Profit-making undertaking or plan
15-20.Royalties
15-22.Payments made to members of a copyright collecting society
15-25.Amount received for lease obligation to repair
15-30.Insurance or indemnity for loss of assessable income
15-35.Interest on overpayments and early payments of tax
15-40.Providing mining, quarrying or prospecting information
15-45.Amounts paid under forestry agreements
15-50.Work in progress amounts
15-55.Certain amounts paid under funeral policy
15-60.Certain amounts paid under scholarship plan
15-65.Sugar industry exit grants
INCOME TAX ASSESSMENT ACT 1997
Division 17—Effect of GST etc. on assessable income


INCOME TAX ASSESSMENT ACT 1997
Guide to Division 17


17-1. What this Division is about
17-5. GST and increasing adjustments
17-10.Certain decreasing adjustments
17-15.Elements in calculation of amounts
17-20.GST groups and GST joint ventures
17-25.GST attributable because of the GST Transition Act
17-30.Special credits because of indirect tax transition
17-35.Certain sections not to apply to certain assets or expenditure
INCOME TAX ASSESSMENT ACT 1997
Division 20—Amounts included to reverse the effect of past
deductions

INCOME TAX ASSESSMENT ACT 1997
Guide to Division 20


20-1. What this Division is about
20-5. Other provisions that reverse the effect of deductions
INCOME TAX ASSESSMENT ACT 1997
Subdivision 20-A—Insurance, indemnity or other recoupment
for deductible expenses
Guide to Subdivision 20-A


20-10.What this Subdivision is about
20-15.How to use this Subdivision
INCOME TAX ASSESSMENT ACT 1997
What is an assessable recoupment ?


20-20.Assessable recoupments
20-25.What is recoupment ?
20-30.Tables of deductions for which recoupments are assessable
INCOME TAX ASSESSMENT ACT 1997
How much is included in your assessable income?


20-35.If the expense is deductible in a single income year
20-40.If the expense is deductible over 2 or more income years
20-45.Effect of balancing charge
20-50.If the expense is only partially deductible
20-55.Meaning of previous recoupment law
INCOME TAX ASSESSMENT ACT 1997
What if you can deduct a loss or outgoing incurred by another
entity?


20-60.If you are the only entity that can deduct an amount for the loss or outgoing
20-65.If 2 or more entities can deduct amounts for the loss or outgoing
INCOME TAX ASSESSMENT ACT 1997
Subdivision 20-B—Disposal of a car for which lease payments
have been deducted
Guide to Subdivision 20-B


20-100.What this Subdivision is about
20-105.Map of this Subdivision
INCOME TAX ASSESSMENT ACT 1997
The usual case


20-110.Disposal of a leased car for profit
20-115.Working out the profit on the disposal
20-120.Meaning of notional depreciation
INCOME TAX ASSESSMENT ACT 1997
The associate case


20-125.Disposal of a leased car for profit
INCOME TAX ASSESSMENT ACT 1997
Successive leases


20-130.Successive leases
INCOME TAX ASSESSMENT ACT 1997
Previous disposals of the car


20-135.No amount included if earlier disposal for market value
20-140.Reducing the amount to be included if there has been an earlier disposal
INCOME TAX ASSESSMENT ACT 1997
Miscellaneous rules


20-145.No amount included if you inherited the car
20-150.Reducing the amount to be included if another provision requires you to include an amount for the disposal
20-155.Exception for particular cars taken on hire
20-157.Exception for STS taxpayers
INCOME TAX ASSESSMENT ACT 1997
Disposals of interests in a car: special rules apply


20-160.Disposal of an interest in a car
INCOME TAX ASSESSMENT ACT 1997
Part 2-5—Rules about deductibility of particular kinds of amounts

INCOME TAX ASSESSMENT ACT 1997
Division 25—Some amounts you can deduct


INCOME TAX ASSESSMENT ACT 1997
Guide to Division 25


25-1. What this Division is about
INCOME TAX ASSESSMENT ACT 1997
Operative provisions


25-5. Tax-related expenses
25-7. Advice about family tax benefit
25-10.Repairs
25-15.Amount paid for lease obligation to repair
25-20.Lease document expenses
25-25.Borrowing expenses
25-30.Expenses of discharging a mortgage
25-35.Bad debts
25-40.Loss from profit-making undertaking or plan
25-45.Loss by theft etc.
25-50.Payments of pensions, gratuities or retiring allowances
25-55.Payments to associations
25-60.Parliament election expenses
25-70.Deduction for election expenses does not extend to entertainment
25-75.Rates and land taxes on premises used to produce mutual receipts
25-80.Upgrading plant to meet GST obligations etc.
25-85.Certain returns in respect of debt interests
25-90.Deduction relating to foreign non-assessable non-exempt income
25-95.Deduction for work in progress amounts
25-105.Deductions for United Medical Protection Limited support payments
25-100.Travel between workplaces
INCOME TAX ASSESSMENT ACT 1997
Division 26—Some amounts you cannot deduct, or cannot deduct
in full


INCOME TAX ASSESSMENT ACT 1997
Guide to Division 26


26-1. What this Division is about
INCOME TAX ASSESSMENT ACT 1997
Operative provisions


26-5. Penalties
26-10.Leave payments
26-15.Franchise fees windfall tax
26-17.Commonwealth places windfall tax
26-20.Assistance to students
26-25.Interest or royalty
26-26.Non-share distributions and dividends
26-30.Relative's travel expenses
26-35.Reducing deductions for amounts paid to related entities
26-40.Maintaining your family
26-45.Recreational club expenses
26-50.Expenses for a leisure facility or boat
26-52.Bribes to foreign public officials
26-53.Bribes to public officials
26-55.Limit on deductions
26-60.Superannuation contributions surcharge
26-65.Termination payments surcharge
26-68.Loss from disposal of eligible venture capital investments
26-70.Loss from disposal of venture capital equity
26-75.Contributions to non-complying superannuation funds
26-80.Contributions to complying superannuation funds or RSAs
INCOME TAX ASSESSMENT ACT 1997
Division 27—Effect of input tax credits etc. on
deductions

INCOME TAX ASSESSMENT ACT 1997
Guide to Division 27


27-1. What this Division is about
INCOME TAX ASSESSMENT ACT 1997
Subdivision 27-A—General

27-5. Input tax credits and decreasing adjustments
27-10.Certain increasing adjustments
27-15.GST payments
27-20.Elements in calculation of amounts
27-25.GST groups and GST joint ventures
27-30.Input tax credits attributable because of the GST Transition Act
27-35.Certain sections not to apply to certain assets or expenditure
INCOME TAX ASSESSMENT ACT 1997
Subdivision 27-B—Effect of input tax credits etc. on capital
allowances

27-80.Cost or opening adjustable value of depreciating assets reduced for input tax credits
27-85.Cost or opening adjustable value of depreciating assets reduced: decreasing adjustments
27-87.Certain decreasing adjustments included in assessable income
27-90.Cost or opening adjustable value of depreciating assets increased: increasing adjustments
27-92.Certain increasing adjustments can be deducted
27-95.Balancing adjustment events
27-100.Pooling
27-105.Other Division 40 expenditure
27-110.Input tax credit etc. relating to 2 or more things
INCOME TAX ASSESSMENT ACT 1997
Division 28—Car expenses

INCOME TAX ASSESSMENT ACT 1997
Guide to Division 28


28-1. What this Division is about
28-5. Map of this Division
INCOME TAX ASSESSMENT ACT 1997
Subdivision 28-A—Deductions for car expenses

28-10.Application of Division 28
28-12.Car expenses
28-13.Meaning of car expense
INCOME TAX ASSESSMENT ACT 1997
Subdivision 28-B—Choosing which method to use
Guide to Subdivision 28-B


28-14.What this Subdivision is about
28-15.Choosing among the 4 methods
INCOME TAX ASSESSMENT ACT 1997
Operative provision


28-20.Rules governing choice of method
INCOME TAX ASSESSMENT ACT 1997
Subdivision 28-C—The "cents per kilometre"
method

28-25.How to calculate your deduction
28-30.Capital allowances
28-35.Substantiation
INCOME TAX ASSESSMENT ACT 1997
Subdivision 28-D—The "12% of original value"
method

28-45.How to calculate your deduction
28-50.Eligibility
28-55.Capital allowances
28-60.Substantiation
INCOME TAX ASSESSMENT ACT 1997
Subdivision 28-E—The "one-third of actual expenses"
method

28-70.How to calculate your deduction
28-75.Eligibility
28-80.Substantiation
INCOME TAX ASSESSMENT ACT 1997
Subdivision 28-F—The "log book" method

28-90.How to calculate your deduction
28-95.Eligibility
28-100.Substantiation
INCOME TAX ASSESSMENT ACT 1997
Subdivision 28-G—Keeping a log book
Guide to Subdivision 28-G


28-105.What this Subdivision is about
28-110.Steps for keeping a log book
INCOME TAX ASSESSMENT ACT 1997
Operative provisions


28-115.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
INCOME TAX ASSESSMENT ACT 1997
Subdivision 28-H—Odometer records for a period
Guide to Subdivision 28-H


28-135.What this Subdivision is about
INCOME TAX ASSESSMENT ACT 1997
Operative provision


28-140.How to keep odometer records for a car for a period
INCOME TAX ASSESSMENT ACT 1997
Subdivision 28-I—Retaining the log book and odometer
records

28-150.Retaining the log book for the retention period
28-155.Retaining odometer records
INCOME TAX ASSESSMENT ACT 1997
Subdivision 28-J—Situations where you cannot use, or don't
need to use, one of the 4 methods
Guide to Subdivision 28-J


28-160.What this Subdivision is about
INCOME TAX ASSESSMENT ACT 1997
Operative provisions


28-165.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 recipients and payers of certain withholding payments
INCOME TAX ASSESSMENT ACT 1997
Division 30—Gifts or contributions

INCOME TAX ASSESSMENT ACT 1997
Guide to Division 30


30-1. What this Division is about
30-5. How to find your way around this Division
30-10.Index
INCOME TAX ASSESSMENT ACT 1997
Subdivision 30-A—Deductions for gifts or
contributions

30-15.Table of gifts or contributions that you can deduct
30-17.Requirements for certain recipients
INCOME TAX ASSESSMENT ACT 1997
Subdivision 30-B—Tables of recipients for deductible
gifts

INCOME TAX ASSESSMENT ACT 1997
Health


30-20.Health
INCOME TAX ASSESSMENT ACT 1997
Education


30-25.Education
30-30.Gifts that must be for certain purposes
30-35.Gifts to a public fund established to benefit a rural school hostel building must satisfy certain requirements
INCOME TAX ASSESSMENT ACT 1997
Research


30-40.Research
INCOME TAX ASSESSMENT ACT 1997
Welfare and rights


30-45.Welfare and rights
INCOME TAX ASSESSMENT ACT 1997
Defence


30-50.Defence
INCOME TAX ASSESSMENT ACT 1997
Environment


30-55.The environment
30-60.Gifts to a National Parks body or conservation body must satisfy certain requirements
INCOME TAX ASSESSMENT ACT 1997
Industry, trade and design


30-65.Industry, trade and design
INCOME TAX ASSESSMENT ACT 1997
The family


30-70.The family
30-75.Marriage education and family and child mediation and counselling organisations must be approved
INCOME TAX ASSESSMENT ACT 1997
International affairs


30-80.International affairs
30-85.Declaration must be in force at the time you make the gift
INCOME TAX ASSESSMENT ACT 1997
Sports and recreation


30-90.Sports and recreation
INCOME TAX ASSESSMENT ACT 1997
Philanthropic trusts


30-95.Philanthropic trusts
INCOME TAX ASSESSMENT ACT 1997
Cultural organisations


30-100.Cultural organisations
INCOME TAX ASSESSMENT ACT 1997
Fire and emergency services


30-102.Fire and emergency services
INCOME TAX ASSESSMENT ACT 1997
Other recipients


30-105.Other recipients
INCOME TAX ASSESSMENT ACT 1997
Subdivision 30-BA—Endorsement of deductible gift recipients
Guide to Subdivision 30-BA


30-115.What this Subdivision is about
INCOME TAX ASSESSMENT ACT 1997
Endorsement as a deductible gift recipient


30-120.Endorsement by Commissioner
30-125.Entitlement to endorsement
INCOME TAX ASSESSMENT ACT 1997
Government entities treated like entities


30-180.How this Subdivision applies to government entities
INCOME TAX ASSESSMENT ACT 1997
Subdivision 30-C—Rules applying to particular gifts of
property

INCOME TAX ASSESSMENT ACT 1997
Valuation requirements


30-200.Getting written valuations
30-205.Proceeds of the sale would have been assessable
30-210.Approved valuers
30-212.Valuations by the Commissioner
INCOME TAX ASSESSMENT ACT 1997
Working out the amount you can deduct for a gift of property


30-215.How much you can deduct
30-220.Reducing the amount you can deduct
INCOME TAX ASSESSMENT ACT 1997
Joint ownership of property


30-225.Gift of property by joint owners
INCOME TAX ASSESSMENT ACT 1997
Subdivision 30-CA—Administrative requirements relating to ABNs
Guide to Subdivision 30-CA


30-226.What this Subdivision is about
INCOME TAX ASSESSMENT ACT 1997
Requirements


30-227.Entities to which this Subdivision applies
30-228.Content of receipt for gift or contribution
30-229.Australian Business Register must show deductibility of gifts to deductible gift recipient
INCOME TAX ASSESSMENT ACT 1997
Subdivision 30-D—Testamentary gifts under the Cultural
Bequests Program

30-230.Testamentary gifts of property
30-235.Getting a certificate
30-240.Limit on total value of gifts for an income year
INCOME TAX ASSESSMENT ACT 1997
Subdivision 30-DB—Spreading certain gift and covenant
deductions over up to 5 income years
Guide to Subdivision 30-DB


30-246.What this Subdivision is about
INCOME TAX ASSESSMENT ACT 1997
Operative provisions


30-247.Gifts and covenants for which elections can be made
30-248.Making an election
30-249.Effect of election
30-249A.Requirements—environmental property gifts
30-249B.Requirements—heritage property gifts
30-249C.Requirements—certain cultural property gifts
30-249D.Requirements—conservation covenants
INCOME TAX ASSESSMENT ACT 1997
Subdivision 30-E—Register of environmental organisations
Guide to Subdivision 30-E


30-250.What this Subdivision is about
INCOME TAX ASSESSMENT ACT 1997
Operative provisions


30-255.Establishing the register
30-260.Meaning of environmental organisation
30-265.Its principal purpose must be protecting the environment
30-270.Other requirements it must satisfy
30-275.Further requirement for a body corporate or a co-operative society
30-280.What must be on the register
30-285.Removal from the register
INCOME TAX ASSESSMENT ACT 1997
Subdivision 30-EA—Register of harm prevention charities
Guide to Subdivision 30-EA


30-286.What this Subdivision is about
INCOME TAX ASSESSMENT ACT 1997
Operative provisions


30-287.Establishing the register
30-288.Meaning of harm prevention charity
30-289.Principal activity—promoting the prevention or control of harm or abuse
30-289A.Other requirements
30-289B.What must be on the register
30-289C.Removal from the register
INCOME TAX ASSESSMENT ACT 1997
Subdivision 30-F—Register of cultural organisations
Guide to Subdivision 30-F


30-290.What this Subdivision is about
INCOME TAX ASSESSMENT ACT 1997
Operative provisions


30-295.Establishing the register
30-300.Meaning of cultural organisation
30-305.What must be on the register
30-310.Removal from the register
INCOME TAX ASSESSMENT ACT 1997
Subdivision 30-G—Index to this Division

30-315.Index
30-320.Effect of this Subdivision
INCOME TAX ASSESSMENT ACT 1997
Division 31—Conservation covenants


INCOME TAX ASSESSMENT ACT 1997
Guide to Division 31


31-1. What this Division is about
INCOME TAX ASSESSMENT ACT 1997
Operative provisions


31-5. Deduction for entering into conservation covenant
31-10.Requirements for fund, authority or institution
31-15.Valuations by the Commissioner
INCOME TAX ASSESSMENT ACT 1997
Division 32—Entertainment expenses

INCOME TAX ASSESSMENT ACT 1997
Guide to Division 32


32-1. What this Division is about
INCOME TAX ASSESSMENT ACT 1997
Subdivision 32-A—No deduction for entertainment
expenses

32-5. No deduction for entertainment expenses
32-10.Meaning of entertainment
32-15.No deduction for property used for providing entertainment
INCOME TAX ASSESSMENT ACT 1997
Subdivision 32-B—Exceptions

32-20.The main exception—fringe benefits
32-25.The tables set out the other exceptions
32-30.Employer expenses
32-35.Seminar expenses
32-40.Entertainment industry expenses
32-45.Promotion and advertising expenses
32-50.Other expenses
INCOME TAX ASSESSMENT ACT 1997
Subdivision 32-C—Definitions relevant to the
exceptions

32-55.In-house dining facility (employer expenses table items 1.1 and 1.2)
32-60.Dining facility (employer expenses table item 1.3)
32-65.Seminars (seminar expenses table item 2.1)
INCOME TAX ASSESSMENT ACT 1997
Subdivision 32-D—In-house dining facilities (employer
expenses table item 1.2)

32-70.$30 is assessable for each meal provided to non-employee in an in-house dining facility
INCOME TAX ASSESSMENT ACT 1997
Subdivision 32-E—Anti-avoidance

32-75.Commissioner may treat you as having incurred entertainment expense
INCOME TAX ASSESSMENT ACT 1997
Subdivision 32-F—Special rules for companies and
partnerships

32-80.Company directors
32-85.Directors, employees and property of wholly-owned group company
32-90.Partnerships
INCOME TAX ASSESSMENT ACT 1997
Division 34—Non-compulsory uniforms

INCOME TAX ASSESSMENT ACT 1997
Guide to Division 34


34-1. What this Division is about
34-3. What you need to read
INCOME TAX ASSESSMENT ACT 1997
Subdivision 34-A—Application of
Division 34

34-5. This Division applies to employees and others
34-7. This Division applies to employers and others
INCOME TAX ASSESSMENT ACT 1997
Subdivision 34-B—Deduction for your non-compulsory
uniform

34-10.What you can deduct
34-15.What is a non-compulsory uniform?
34-20.What are occupation specific clothing and protective clothing ?
INCOME TAX ASSESSMENT ACT 1997
Subdivision 34-C—Registering the design of a non-compulsory
uniform

34-25.Application to register the design
34-30.Industry Secretary's decision on application
34-33.Written notice of decision
34-35.When uniform becomes registered
INCOME TAX ASSESSMENT ACT 1997
Subdivision 34-D—Appeals from Industry Secretary's
decision

34-40.Review of decisions by the Administrative Appeals Tribunal
INCOME TAX ASSESSMENT ACT 1997
Subdivision 34-E—The Register of Approved Occupational
Clothing

34-45.Keeping of the Register
34-50.Changes to the Register
INCOME TAX ASSESSMENT ACT 1997
Subdivision 34-F—Approved occupational clothing
guidelines

34-55.Approved occupational clothing guidelines
INCOME TAX ASSESSMENT ACT 1997
Subdivision 34-G—The Industry Secretary

34-60.Industry Secretary to give Commissioner information about entries
34-65.Delegation of powers by Industry Secretary
INCOME TAX ASSESSMENT ACT 1997
Division 35—Deferral of losses from non-commercial business
activities


INCOME TAX ASSESSMENT ACT 1997
Guide to Division 35


35-1. What this Division is about
INCOME TAX ASSESSMENT ACT 1997
Operative provisions


35-5. Object
35-10.Deferral of deductions from non-commercial business activities
35-15.Modification if you have exempt income
35-20.Modification if you become bankrupt
35-25.Application of Division to certain partnerships
35-30.Assessable income test
35-35.Profits test
35-40.Real property test
35-45.Other assets test
35-50.Apportionment
35-55.Commissioner's discretion
INCOME TAX ASSESSMENT ACT 1997
Division 36—Tax losses of earlier income years

INCOME TAX ASSESSMENT ACT 1997
Guide to Division 36


36-1. What this Division is about
INCOME TAX ASSESSMENT ACT 1997
Subdivision 36-A—Deductions for tax losses of earlier income
years

36-10.How to calculate a tax loss for an income year
36-15.How to deduct tax losses of entities other than corporate tax entities
36-17.How to deduct tax losses of corporate tax entities
36-20.Net exempt income
36-25.Special rules about tax losses
INCOME TAX ASSESSMENT ACT 1997
Subdivision 36-B—Effect of you becoming bankrupt
Guide to Subdivision 36-B


36-30.What this Subdivision is about
INCOME TAX ASSESSMENT ACT 1997
Operative provisions


36-35.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
INCOME TAX ASSESSMENT ACT 1997
Subdivision 36-C—Excess franking offsets
Guide to Subdivision 36-C


36-50.What this Subdivision is about
INCOME TAX ASSESSMENT ACT 1997
Operative provision


36-55.Converting excess franking offsets into tax loss
INCOME TAX ASSESSMENT ACT 1997
Part 2-10—Capital allowances: rules about deductibility of
capital expenditure

INCOME TAX ASSESSMENT ACT 1997
Division 40—Capital allowances

INCOME TAX ASSESSMENT ACT 1997
Guide to Division 40


40-1. What this Division is about
40-10.Simplified outline of this Division
INCOME TAX ASSESSMENT ACT 1997
Subdivision 40-A—Objects of Division

40-15.Objects of Division
INCOME TAX ASSESSMENT ACT 1997
Subdivision 40-B—Core provisions
Guide to Subdivision 40-B


40-20.What this Subdivision is about
INCOME TAX ASSESSMENT ACT 1997
Operative provisions


40-25.Deducting amounts for depreciating assets
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 certain car methods
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
40-75.Prime cost method
40-80.When you can deduct the asset's cost
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
40-105.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
40-145.Application of Criminal Code
INCOME TAX ASSESSMENT ACT 1997
Subdivision 40-C—Cost
Guide to Subdivision 40-C


40-170.What this Subdivision is about
INCOME TAX ASSESSMENT ACT 1997
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
40-225.Adjustment: acquiring a car at a discount
40-230.Adjustment: car limit
INCOME TAX ASSESSMENT ACT 1997
Subdivision 40-D—Balancing adjustments
Guide to Subdivision 40-D


40-280.What this Subdivision is about
INCOME TAX ASSESSMENT ACT 1997
Operative provisions


40-285.Balancing adjustments
40-290.Reduction for non-taxable use
40-292.Adjustments where deductions for decline in value also allowable under section 73BA or 73BH of Income Tax Assessment Act 1936
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
40-315.Expenses of balancing adjustment event
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
40-365.Involuntary disposals
40-370.Balancing adjustments where there has been use of different car expense methods
INCOME TAX ASSESSMENT ACT 1997
Subdivision 40-E—Low-value and software development pools
Guide to Subdivision 40-E


40-420.What this Subdivision is about
INCOME TAX ASSESSMENT ACT 1997
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
INCOME TAX ASSESSMENT ACT 1997
Subdivision 40-F—Primary production depreciating assets
Guide to Subdivision 40-F


40-510.What this Subdivision is about
INCOME TAX ASSESSMENT ACT 1997
Operative provisions


40-515.Water facilities and horticultural plants
40-520.Meaning of water facility and horticultural plant
40-525.Conditions
40-530.When a water facility or horticultural plant starts to decline in value
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
40-555.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
INCOME TAX ASSESSMENT ACT 1997
Subdivision 40-G—Capital expenditure of primary producers
and other landholders
Guide to Subdivision 40-G


40-625.What this Subdivision is about
INCOME TAX ASSESSMENT ACT 1997
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
INCOME TAX ASSESSMENT ACT 1997
Subdivision 40-H—Capital expenditure that is immediately
deductible
Guide to Subdivision 40-H


40-725.What this Subdivision is about
INCOME TAX ASSESSMENT ACT 1997
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
INCOME TAX ASSESSMENT ACT 1997
Subdivision 40-I—Capital expenditure that is deductible over
time
Guide to Subdivision 40-I


40-825.What this Subdivision is about
INCOME TAX ASSESSMENT ACT 1997
Operative provisions


40-830.Project pools
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
INCOME TAX ASSESSMENT ACT 1997
Division 43—Deductions for capital works

INCOME TAX ASSESSMENT ACT 1997
Guide to Division 43


43-1. What this Division is about
43-2. Key concepts used in this Division
INCOME TAX ASSESSMENT ACT 1997
Subdivision 43-A—Key operative provisions
Guide to Subdivision 43-A


43-5. What this Subdivision is about
INCOME TAX ASSESSMENT ACT 1997
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 body corporate to be registered 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
INCOME TAX ASSESSMENT ACT 1997
Subdivision 43-B—Establishing the deduction base
Guide to Subdivision 43-B


43-60.What this Subdivision is about
43-65.Explanatory material
INCOME TAX ASSESSMENT ACT 1997
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 Research and Development Board
INCOME TAX ASSESSMENT ACT 1997
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
INCOME TAX ASSESSMENT ACT 1997
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
INCOME TAX ASSESSMENT ACT 1997
Subdivision 43-D—Deductible uses of capital works
Guide to Subdivision 43-D


43-135.What this Subdivision is about
INCOME TAX ASSESSMENT ACT 1997
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
INCOME TAX ASSESSMENT ACT 1997
Subdivision 43-E—Special rules about uses
Guide to Subdivision 43-E


43-155.What this Subdivision is about
INCOME TAX ASSESSMENT ACT 1997
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 research and development activities must be in connection with a business
INCOME TAX ASSESSMENT ACT 1997
Subdivision 43-F—Calculation of deduction
Guide to Subdivision 43-F


43-200.What this Subdivision is about
43-205.Explanatory material
INCOME TAX ASSESSMENT ACT 1997
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
INCOME TAX ASSESSMENT ACT 1997
Subdivision 43-G—Undeducted construction expenditure
Guide to Subdivision 43-G


43-225.What this Subdivision is about
INCOME TAX ASSESSMENT ACT 1997
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
INCOME TAX ASSESSMENT ACT 1997
Subdivision 43-H—Balancing deduction on destruction of
capital works
Guide to Subdivision 43-H


43-245.What this Subdivision is about
INCOME TAX ASSESSMENT ACT 1997
Operative provisions


43-250.The amount of the balancing deduction
43-255.Amounts received or receivable
43-260.Apportioning amounts received for destruction
INCOME TAX ASSESSMENT ACT 1997
Division 45—Disposal of leases and leased
plant

INCOME TAX ASSESSMENT ACT 1997
Guide to Division 45


45-1. What this Division is about
INCOME TAX ASSESSMENT ACT 1997
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
INCOME TAX ASSESSMENT ACT 1997
Part 2-15—Non-assessable income

INCOME TAX ASSESSMENT ACT 1997
Division 50—Exempt entities

INCOME TAX ASSESSMENT ACT 1997
Subdivision 50-A—Various exempt entities

50-1. Entities whose ordinary income and statutory income is exempt
50-5. Charity, education, science and religion
50-10.Community service
50-15.Employees and employers
50-20.Funds contributing to other funds
50-25.Government
50-30.Health
50-35.Mining
50-40.Primary and secondary resources, and tourism
50-45.Sports, culture, film and recreation
50-50.Special conditions for items 1.1 and 1.2
50-52.Special condition for items 1.1, 1.5, 1.5A, 1.5B and 4.1
50-55.Special conditions for items 1.3, 1.4, 6.1 and 6.2
50-57.Special condition for item 1.5
50-60.Special conditions for items 1.5A and 1.5B
50-65.Special conditions for item 1.6
50-70.Special conditions for items 1.7, 2.1, 4.1, 9.1 and 9.2
50-72.Special condition for item 4.1
50-75.Certain distributions may be made overseas
50-80.Testamentary trusts may be treated as 2 trusts
INCOME TAX ASSESSMENT ACT 1997
Subdivision 50-B—Endorsing charitable entities as exempt
from income tax
Guide to Subdivision 50-B


50-100.What this Subdivision is about
INCOME TAX ASSESSMENT ACT 1997
Endorsing charitable entities as exempt from income tax


50-105.Endorsement by Commissioner
50-110.Entitlement to endorsement
INCOME TAX ASSESSMENT ACT 1997
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
51-43.Income collected or derived by a copyright collecting society
51-50.Maintenance payments to a spouse or child
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.Income from GST Direct Assistance Certificate
51-65.Government co-contribution towards low income earner's superannuation
INCOME TAX ASSESSMENT ACT 1997
Division 52—Certain pensions, benefits and allowances are
exempt from income tax


INCOME TAX ASSESSMENT ACT 1997
Guide to Division 52


52-1. What this Division is about
INCOME TAX ASSESSMENT ACT 1997
Subdivision 52-A—Exempt payments under the Social Security
Act 1991
Guide to Subdivision 52-A


52-5. What this Subdivision is about
INCOME TAX ASSESSMENT ACT 1997
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
INCOME TAX ASSESSMENT ACT 1997
Subdivision 52-B—Exempt payments under the Veterans'
Entitlements Act 1986
Guide to Subdivision 52-B


52-60.What this Subdivision is about
INCOME TAX ASSESSMENT ACT 1997
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
INCOME TAX ASSESSMENT ACT 1997
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
INCOME TAX ASSESSMENT ACT 1997
Operative provisions


52-105.Supplementary amount of a payment made under the Repatriation Act 1920 is exempt
52-110.Other exempt payments
INCOME TAX ASSESSMENT ACT 1997
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
INCOME TAX ASSESSMENT ACT 1997
Operative provisions


52-114.How much of a payment under the Military Rehabilitation and Compensation Act is exempt?
INCOME TAX ASSESSMENT ACT 1997
Subdivision 52-D—Exempt payments made by the Commonwealth to
reimburse certain expenditure


52-125.Private health insurance incentive payments are exempt
INCOME TAX ASSESSMENT ACT 1997
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
INCOME TAX ASSESSMENT ACT 1997
Subdivision 52-G—Exempt payments under the A New Tax System
(Family Assistance) (Administration) Act 1999


52-150.Family assistance payments are exempt
INCOME TAX ASSESSMENT ACT 1997
Division 53—Various exempt payments


INCOME TAX ASSESSMENT ACT 1997
Guide to Division 53


53-1. What this Division is about
INCOME TAX ASSESSMENT ACT 1997
Operative provisions


53-10.Exemption of various types of payments
53-15.Supplementary amount of exceptional circumstances relief payment or farm help income support
53-20.Exemption of similar Australian and United Kingdom veterans' payments
53-25.Amounts of farm household support converted into grants
INCOME TAX ASSESSMENT ACT 1997
Division 54—Exemption for certain payments made under
structured settlements and structured orders

INCOME TAX ASSESSMENT ACT 1997
Guide to Division 54


54-1. What this Division is about
INCOME TAX ASSESSMENT ACT 1997
Subdivision 54-A—Definitions

INCOME TAX ASSESSMENT ACT 1997
Operative provisions


54-5. Definitions
54-10.Meaning of structured settlement and structured order
INCOME TAX ASSESSMENT ACT 1997
Subdivision 54-B—Tax exemption for personal injury
annuities

INCOME TAX ASSESSMENT ACT 1997
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
INCOME TAX ASSESSMENT ACT 1997
Subdivision 54-C—Tax exemption for personal injury lump
sums

INCOME TAX ASSESSMENT ACT 1997
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
INCOME TAX ASSESSMENT ACT 1997
Subdivision 54-D—Miscellaneous

INCOME TAX ASSESSMENT ACT 1997
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
INCOME TAX ASSESSMENT ACT 1997
Division 55—Payments that are not exempt from income tax


INCOME TAX ASSESSMENT ACT 1997
Guide to Division 55


55-1. What this Division is about
INCOME TAX ASSESSMENT ACT 1997
Operative provisions


55-5. Occupational superannuation payments
55-10.Education entry payments
INCOME TAX ASSESSMENT ACT 1997
Part 2-15—Non-assessable income

INCOME TAX ASSESSMENT ACT 1997
Division 58—Capital allowances for depreciating assets
previously owned by an exempt entity

INCOME TAX ASSESSMENT ACT 1997
Guide to Division 58


58-1. What this Division is about
INCOME TAX ASSESSMENT ACT 1997
Subdivision 58-A—Application

58-5. Application of Division
58-10.When an asset is acquired in connection with the acquisition of a business
INCOME TAX ASSESSMENT ACT 1997
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
INCOME TAX ASSESSMENT ACT 1997
Division 59—Particular amounts of non-assessable non-exempt
income

INCOME TAX ASSESSMENT ACT 1997
Guide to Division 59


59-1. What this Division is about
INCOME TAX ASSESSMENT ACT 1997
Operative provisions


59-5. Bonus payments made to certain older Australians
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
INCOME TAX ASSESSMENT ACT 1997
Part 2-20—Tax offsets

INCOME TAX ASSESSMENT ACT 1997
Division 61—Generally applicable tax offsets

INCOME TAX ASSESSMENT ACT 1997
Subdivision 61-G—Private health insurance offset
complementary to Private Health Insurance Incentives Act 1997
Guide to Subdivision 61-G


61-300.What this Subdivision is about
61-305.Entitlement to the private health insurance tax offset
61-310.Amount of the private health insurance tax offset
61-315.Priority between different taxpayers
61-320.Priority agreements
INCOME TAX ASSESSMENT ACT 1997
Subdivision 61-H—Private health insurance offset
complementary to Private Health Insurance Incentives Act 1998
Guide to Subdivision 61-H


61-330.What this Subdivision is about
INCOME TAX ASSESSMENT ACT 1997
Operative provisions


61-335.Entitlement to the private health insurance tax offset
61-340.Amount of the private health insurance tax offset
61-342.Saving provision where a person 65 years or over ceases to be covered by policy
61-345.How to work out the incentive amount
INCOME TAX ASSESSMENT ACT 1997
Subdivision 61-I—First child tax offset (baby bonus)
Guide to Subdivision 61-I


61-350.What this Subdivision is about
INCOME TAX ASSESSMENT ACT 1997
Entitlement to a first child tax offset


61-355.Who is entitled to a tax offset under this section
61-360.What is a child event?
61-365.First child only
61-370.Another carer with entitlement for another child
61-375.Selection rules
61-380.Special rules for death of first child
INCOME TAX ASSESSMENT ACT 1997
Transferring an entitlement


61-385.You may transfer your entitlement to a tax offset
61-390.Transfer is irrevocable
61-395.Transferor is not entitled to tax offset
61-400.Transferee is entitled to tax offset
INCOME TAX ASSESSMENT ACT 1997
Claiming a first child tax offset


61-405.How to claim a tax offset for a child
61-410.Claim is irrevocable
INCOME TAX ASSESSMENT ACT 1997
Amount of a first child tax offset


61-415.Formula for working out amount of tax offset
61-420.Component of formula—entitlement amount
61-425.Component of formula—total of the entitlement days
61-430.What is your base year?
INCOME TAX ASSESSMENT ACT 1997
Additional tax offset if a child is in your care before you
legally adopt the child


61-440.Additional tax offset if a child is in your care before you legally adopt the child
61-445.When a child is first in your care
61-450.What is your base year if a child is in your care before you legally adopt the child?
61-455.Old Subdivision applies if you would be worse off
INCOME TAX ASSESSMENT ACT 1997
Subdivision 61-J—25% entrepreneurs' tax offset
Guide to Subdivision 61-J


61-500.What this Subdivision is about
INCOME TAX ASSESSMENT ACT 1997
Operative provisions


61-505.25% entrepreneurs' tax offset: individual or company
61-510.25% entrepreneurs' tax offset: partner in a partnership
61-515.25% entrepreneurs' tax offset: trustee of a trust
61-520.25% entrepreneurs' tax offset: beneficiary of a trust
61-525.Meaning of net STS income and STS annual turnover
INCOME TAX ASSESSMENT ACT 1997
Subdivision 61-K—Mature age worker tax offset
Guide to Subdivision 61-K


61-550.What this Subdivision is about
INCOME TAX ASSESSMENT ACT 1997
Operative provisions


61-555.Object of this Subdivision
61-560.Entitlement to the mature age worker tax offset
61-565.The amount of the tax offset
61-570.Definition of net income from working
INCOME TAX ASSESSMENT ACT 1997
Division 65—Tax offset carry forward rules


INCOME TAX ASSESSMENT ACT 1997
Guide to Division 65


65-10.What this Division is about
INCOME TAX ASSESSMENT ACT 1997
Operative provisions


65-20.Which tax offsets this Division applies to
65-25.When you can carry forward a tax offset
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
INCOME TAX ASSESSMENT ACT 1997
Division 67—Refundable tax offset rules

INCOME TAX ASSESSMENT ACT 1997
Guide to Division 67


67-10.What this Division is about
INCOME TAX ASSESSMENT ACT 1997
Operative provisions


67-20.Which tax offsets this Division applies to
67-25.Tax offsets that are subject to the refundable tax offset rules
67-30.When you can get a refund of a tax offset
67-35.Amount of refund
INCOME TAX ASSESSMENT ACT 1997
Part 2-25—Trading stock

INCOME TAX ASSESSMENT ACT 1997
Division 70—Trading stock

INCOME TAX ASSESSMENT ACT 1997
Guide to Division 70


70-1. What this Division is about
70-5. The 3 key features of tax accounting for trading stock
INCOME TAX ASSESSMENT ACT 1997
Subdivision 70-A—What is trading stock

70-10.Meaning of trading stock
INCOME TAX ASSESSMENT ACT 1997
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
INCOME TAX ASSESSMENT ACT 1997
Subdivision 70-C—Accounting for trading stock you hold at
the start or end of the income year

INCOME TAX ASSESSMENT ACT 1997
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
INCOME TAX ASSESSMENT ACT 1997
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
70-70.Valuing interests in FIFs
INCOME TAX ASSESSMENT ACT 1997
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
INCOME TAX ASSESSMENT ACT 1997
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
INCOME TAX ASSESSMENT ACT 1997
Subdivision 70-E—Miscellaneous

70-120.Deducting capital costs of acquiring trees
INCOME TAX ASSESSMENT ACT 1997
Part 2-42—Personal services income

INCOME TAX ASSESSMENT ACT 1997
Division 84—Introduction

INCOME TAX ASSESSMENT ACT 1997
Guide to Part 2-42


84-1. What this Part is about
INCOME TAX ASSESSMENT ACT 1997
Operative provisions


84-5. Meaning of personal services income
84-10.This Part does not imply that individuals are employees
INCOME TAX ASSESSMENT ACT 1997
Division 85—Deductions relating to personal services
income

INCOME TAX ASSESSMENT ACT 1997
Guide to Division 85


85-1. What this Division is about
INCOME TAX ASSESSMENT ACT 1997
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
INCOME TAX ASSESSMENT ACT 1997
Division 86—Alienation of personal services
income

INCOME TAX ASSESSMENT ACT 1997
Guide to Division 86


86-1. What this Division is about
86-5. A simple description of what this Division does
INCOME TAX ASSESSMENT ACT 1997
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
INCOME TAX ASSESSMENT ACT 1997
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
INCOME TAX ASSESSMENT ACT 1997
Division 87—Personal services businesses

INCOME TAX ASSESSMENT ACT 1997
Guide to Division 87


87-1. What this Division is about
87-5. Diagram showing the operation of this Division
INCOME TAX ASSESSMENT ACT 1997
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
INCOME TAX ASSESSMENT ACT 1997
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
INCOME TAX ASSESSMENT ACT 1997
Chapter 3—Specialist liability rules

INCOME TAX ASSESSMENT ACT 1997
Part 3-1—Capital gains and losses: general topics

INCOME TAX ASSESSMENT ACT 1997
Division 100—A Guide to capital gains and losses


INCOME TAX ASSESSMENT ACT 1997
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
INCOME TAX ASSESSMENT ACT 1997
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?
INCOME TAX ASSESSMENT ACT 1997
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
INCOME TAX ASSESSMENT ACT 1997
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?
INCOME TAX ASSESSMENT ACT 1997
Keeping records for CGT purposes


100-60.Why keep records?
100-65.What records?
100-70.How long you need to keep records
INCOME TAX ASSESSMENT ACT 1997
Division 102—Assessable income includes net capital
gain

INCOME TAX ASSESSMENT ACT 1997
Guide to Division 102


102-1.What this Division is about
102-3.Concessions in working out your net capital gain
INCOME TAX ASSESSMENT ACT 1997
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
INCOME TAX ASSESSMENT ACT 1997
Division 103—General rules


INCOME TAX ASSESSMENT ACT 1997
Guide to Division 103


103-1.What this Division is about
INCOME TAX ASSESSMENT ACT 1997
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
INCOME TAX ASSESSMENT ACT 1997
Division 104—CGT events

INCOME TAX ASSESSMENT ACT 1997
Guide to Division 104


104-1.What this Division is about
104-5.Summary of the CGT events
INCOME TAX ASSESSMENT ACT 1997
Subdivision 104-A—Disposals


104-10.Disposal of a CGT asset: CGT event A1
INCOME TAX ASSESSMENT ACT 1997
Subdivision 104-B—Use and enjoyment before title passes


104-15.Use and enjoyment before title passes: CGT event B1
INCOME TAX ASSESSMENT ACT 1997
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
INCOME TAX ASSESSMENT ACT 1997
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
INCOME TAX ASSESSMENT ACT 1997
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
INCOME TAX ASSESSMENT ACT 1997
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
INCOME TAX ASSESSMENT ACT 1997
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
INCOME TAX ASSESSMENT ACT 1997
Subdivision 104-H—Special capital receipts