Itaa 1997240

251658240
Income Tax Assessment Act 1997

No. 38, 1997 as amended
Compilation start date: 18 March 2014
Includes amendments up to: Act No. 11, 2014
This compilation has been split into 11 volumes
Volume 1: sections 1-1 to 36-
Volume 2 sections 40-1 to 55-10
Volume ! sections 58-1 to 122-205
Volume 4 sections 124-1 to 152-4!0
Volume 5 sections 160-1 to 220-800
Volume 6 sections 2!0-1 to !12-15
Volume " sections !15#1 to 420#"0
Volume 8 sections 620-5 to "2"-$10
Volume $ sections "68-100 to $$5-1
Volume 10 %n&notes 1 to !
Volume 11 %n&notes 4 to 8
%ach volume has its o'n contents
(repare& b) the *++ice o+ (arliamentar) ,ounsel, ,anberra
A!out t"is compilation
T"is compilation
This is a compilation o+ the Income Tax Assessment Act 1997 as in +orce on
18 March 2014. -t inclu&es an) commence& amen&ment a++ectin. the le.islation
to that &ate.
This compilation 'as prepare& on 20 March 2014.
The notes at the en& o+ this compilation /the endnotes0 inclu&e in+ormation
about amen&in. la's an& the amen&ment histor) o+ each amen&e& provision.
#ncommenced amendments
The e++ect o+ uncommence& amen&ments is not re+lecte& in the te1t o+ the
compile& la' but the te1t o+ the amen&ments is inclu&e& in the en&notes.
Application, sa$in% and transitional pro$isions &or pro$isions and
amendments
-+ the operation o+ a provision or amen&ment is a++ecte& b) an application,
savin. or transitional provision that is not inclu&e& in this compilation, &etails
are inclu&e& in the en&notes.
'odi&ications
-+ a provision o+ the compile& la' is a++ecte& b) a mo&i+ication that is in +orce,
&etails are inclu&e& in the en&notes.
(ro$isions ceasin% to "a$e e&&ect
-+ a provision o+ the compile& la' has e1pire& or other'ise cease& to have
e++ect in accor&ance 'ith a provision o+ the la', &etails are inclu&e& in the
en&notes.

,ontents
Income Tax Assessment Act 1997 3
C"apter ) 2iabilit) rules o+ .eneral application
(art )* 3ules about &e&uctibilit) o+ particular 4in&s o+ amounts
+i$ision 3, 5i+ts or contributions
6ection !0#10
An Act a!out income tax and related matters
C"apter 1-Introduction and core pro$isions
(art 1*1-(reliminar.
+i$ision 1-(reliminar.
Ta!le o& sections
1#1 6hort title
1#2 ,ommencement
1#! 7i++erences in st)le not to a++ect meanin.
1#" A&ministration o+ this Act
1*1 /"ort title
This Act ma) be cite& as the Income Tax Assessment Act 1997.
1*) Commencement
This Act commences on 1 8ul) 1$$".
1*3 +i&&erences in st.le not to a&&ect meanin%
/10 This Act contains provisions o+ the Income Tax Assessment Act
1936 in a re'ritten +orm.
/20 -+
/a0 that Act e1presse& an i&ea in a particular +orm o+ 'or&s9 an&
/b0 this Act appears to have e1presse& the same i&ea in a
&i++erent +orm o+ 'or&s in or&er to use a clearer or simpler
st)le9
the i&eas are not to be ta4en to be &i++erent :ust because &i++erent
+orms o+ 'or&s 'ere use&.
Note A public or private rulin. about a provision o+ the Income Tax
Assessment Act 1936 is ta4en also to be a rulin. about the
correspon&in. provision o+ this Act, so +ar as the 2 provisions e1press
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To +in& &e+initions o+ asteris4e& terms, see the 7ictionar), startin. at section $$5#1.
4 Income Tax Assessment Act 1997
2iabilit) rules o+ .eneral application C"apter )
3ules about &e&uctibilit) o+ particular 4in&s o+ amounts (art )*
5i+ts or contributions +i$ision 3,
6ection !0#5
the same i&eas see section !5"#85 in 6che&ule 1 to the Taxation
Administration Act 1953.
1*7 Administration o& t"is Act
The ,ommissioner has the .eneral a&ministration o+ this Act.
Note An e++ect o+ this provision is that people 'ho ac=uire in+ormation
un&er this Act are sub:ect to the con+i&entialit) obli.ations an&
e1ceptions in 7ivision !55 in 6che&ule 1 to the Taxation
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6ection !0#10
(art 1*)-A 0uide to t"is Act
+i$ision )-1o2 to use t"is Act
Ta!le o& /u!di$isions
2#A >o' to +in& )our 'a) aroun&
2#? >o' the Act is arran.e&
2#, >o' to i&enti+) &e+ine& terms an& +in& the &e+initions
2#7 The numberin. s)stem
2#% 6tatus o+ 5ui&es an& other non#operative material
/u!di$ision )*A-1o2 to &ind .our 2a. around
)*1 T"e desi%n
This Act is &esi.ne& to help )ou i&enti+) accuratel) an& =uic4l) the
provisions that are relevant to )our purpose in rea&in. the income
ta1 la'.
The Act contains tables, &ia.rams an& si.nposts to help )ou
navi.ate )our 'a).
@ou can start at 7ivision ! /Ahat this Act is about0 an& +ollo' the
si.nposts as +ar into the Act as )ou nee& to .o. @ou ma) also
encounter si.nposts to several areas o+ the la' that are relevant to
)ou. %ach one shoul& be +ollo'e&.
6ometimes the) 'ill lea& &o'n throu.h several levels o+ &etail. At
each successive level, the rules are structure& in a similar 'a).
The) 'ill o+ten be prece&e& b) a 5ui&e to the rules at that level.
The rules themselves 'ill usuall) &eal +irst 'ith the .eneral or
most common case an& then 'ith the more particular or special
cases.
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6ection !0#5
/u!di$ision )*3-1o2 t"e Act is arran%ed
)* T"e p.ramid
This Act is arran.e& in a 'a) that re+lects the principle o+ movin.
+rom the .eneral case to the particular.
-n this respect, the conceptual structure o+ the Act is somethin. li4e
a p)rami&. The p)rami& shape illustrates the 'a) the income ta1
la' is or.anise&, movin. &o'n +rom the central or core provisions
at the top o+ the p)rami&, to .eneral rules o+ 'i&e application an&
then to the more specialise& topics.
251658240
Core
Provisions
Checklists
Specialist Groupings
(examples only)
Rules for
particular
industries &
occupations
General Provisions
Corporate
taxpayers
& corporate
distriutions
Super-
annuation
!nternational
aspects of
income taxation
"inancial
transactions
#dministration
$ictionary of terms and concepts
Core
Provisions
Checklists
Specialist Groupings
(examples only)
Rules for
particular
industries &
occupations
General Provisions
Corporate
taxpayers
& corporate
distriutions
Super-
annuation
!nternational
aspects of
income taxation
"inancial
transactions
#dministration
$ictionary of terms and concepts
Note The Taxation Administration Act 1953 contains the provisions on
collection an& recover) o+ ta1 an& provisions on a&ministration.
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6ection !0#10
/u!di$ision )*C-1o2 to identi&. de&ined terms and &ind t"e
de&initions
Ta!le o& sections
2#10 Ahen &e+ine& terms are i&enti+ie&
2#15 Ahen terms are not i&enti+ie&
2#20 -&enti+)in. the &e+ine& term in a &e+inition
)*1, 4"en de&ined terms are identi&ied
/10 Man) o+ the terms use& in the income ta1 la' are &e+ine&.
/20 Most &e+ine& terms in this Act are i&enti+ie& b) an asteris4
appearin. at the start o+ the term as in B
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businessC. The +ootnote
that .oes 'ith the asteris4 contains a si.npost to the 7ictionar)
&e+initions startin. at section $$5#1.
)*1 4"en terms are not identi&ied
/10 *nce a &e+ine& term has been i&enti+ie& b) an asteris4, later
occurrences o+ the term in the same subsection are not usuall)
asteris4e&.
/20 Terms are not asteris4e& in the non#operative material containe& in
this Act.
Note The non#operative material is &escribe& in 6ub&ivision 2#%.
/!0 The +ollo'in. basic terms use& throu.hout the Act are not
i&enti+ie& 'ith an asteris4. The) +all into 2 .roups
Key participants in the income tax system
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T"is term: is de&ined in:
1. Australian resi&ent section $$5#1
2. ,ommissioner section $$5#1
!. compan) section $$5#1
4. entit) section $60#100
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6ection !0#5
4A. +orei.n resi&ent section $$5#1
5. in&ivi&ual section $$5#1
6. partnership section $$5#1
". person section $$5#1
8. trustee section $$5#1
$. )ou section 4#5
Core concepts
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T"is term: is de&ined in:
1. amount section $$5#1
2. assessable income 7ivision 6
!. assessment section $$5#1
4. &e&uct, &e&uction 7ivision 8
5. income ta1 section $$5#1
6. income )ear section $$5#1
". ta1able income section 4#15
8. this Act section $$5#1
)*), Identi&.in% t"e de&ined term in a de&inition
Aithin a &e+inition, the &e+ine& term is i&enti+ie& b) bold italics.
/u!di$ision )*+-T"e num!erin% s.stem
Ta!le o& sections
2#25 (urposes
2#!0 5aps in the numberin.
)*) (urposes
T'o main purposes o+ the numberin. s)stem in this Act are
D To in&icate the relationship bet'een units at &i++erent
levels.
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6ection !0#10
Eor e1ample, the number o+ (art 2#15 in&icates that the (art is in
,hapter 2. 6imilarl), the number o+ section 165#"0 in&icates that the
section is in 7ivision 165.
D To allo' +or +uture e1pansion o+ the Act. The main
techni=ue here is leavin. .aps bet'een numbers.
)*3, 0aps in t"e num!erin%
There are .aps in the numberin. s)stem to allo' +or the insertion
o+ ne' 7ivisions an& sections.
/u!di$ision )*5-/tatus o& 0uides and ot"er non*operati$e
material
Ta!le o& sections
2#!5 Non#operative material
2#40 5ui&es
2#45 *ther material
)*3 Non*operati$e material
-n a&&ition to the operative provisions themselves, this Act
contains other material to help )ou i&enti+) accuratel) an& =uic4l)
the provisions that are relevant to )ou an& to help )ou un&erstan&
them.
This other material +alls into 2 main cate.ories.
)*6, 0uides
The +irst is the B5ui&esC. A Guide consists o+ sections un&er a
hea&in. in&icatin. that 'hat +ollo's is a 5ui&e to a particular
6ub&ivision, 7ivision etc.
5ui&es +orm part o+ this Act but are 4ept separate +rom the
operative provisions. -n interpretin. an operative provision, a
5ui&e ma) onl) be consi&ere& +or limite& purposes. These are set
out in section $50#150.
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6ection !0#5
)*6 7t"er material
The other cate.or) consists o+ material such as notes an&
e1amples. These also +orm part o+ the Act. The) are &istin.uishe&
b) t)pe siFe +rom the operative provisions, but are not 4ept
separate +rom them.
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6ection !0#10
+i$ision 3-4"at t"is Act is a!out
Ta!le o& sections
!#5 Annual income ta1
!#10 @our other obli.ations as a ta1pa)er
!#15 @our obli.ations other than as a ta1pa)er
3* Annual income tax
/10 -ncome ta1 is pa)able +or each )ear b) each in&ivi&ual an&
compan), an& b) some other entities.
Note 1 -n&ivi&uals 'ho are Australian resi&ents, an& some trustees, are also
liable to pa) Me&icare lev) +or each )ear. 6ee the Medicare e!y Act
1986 an& (art V--? o+ the Income Tax Assessment Act 1936.
Note 2 -ncome ta1 is impose& b) the Income Tax Act 1986 an& the other Acts
re+erre& to in the &e+inition o+ income tax in section $$5#1.
/20 Most entities have to pa) insta"ments o+ income ta1 be+ore the
income ta1 the) act#a""y have to pa) can be 'or4e& out.
/!0 This Act ans'ers these =uestions
1. Ahat instalments o+ income ta1 &o )ou have to pa)G Ahen
an& ho' &o )ou pa) themG
6ee 6che&ule 1 to the Taxation Administration Act 1953.
2. >o' &o )ou 'or4 out ho' much income ta1 )ou must pa)G
6ee 7ivision 4, startin. at section 4#1.
!. Ahat happens i+ )our income ta1 is more than the
instalments )ou have pai&G Ahen an& ho' must )ou pa) the
restG
6ee 7ivision 5 o+ this Act an& (art 4#15 in 6che&ule 1 to the Taxation
4. Ahat happens i+ )our income ta1 is "ess than the instalments
)ou have pai&G >o' &o )ou .et a re+un&G
6ee 7ivision !A o+ (art --? o+ the Taxation Administration Act 1953.
5. Ahat are )our other obli.ations as a ta1pa)er, besi&es pa)in.
instalments an& the rest o+ )our income ta1G
6ee section !#10.
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1$ Income Tax Assessment Act 1997
6ection !0#5
6. 7o )ou have an) other obli.ations un&er the income ta1 la'G
6ee section !#15.
". -+ a &ispute bet'een )ou an& the ,ommissioner o+ Ta1ation
cannot be settle& b) a.reement, 'hat proce&ures +or
ob:ection, revie' an& appeal are availableG
6ee (art -V, /sections 14H2 to 14HH60 o+ the Taxation
3*1, 8our ot"er o!li%ations as a taxpa.er
/10 ?esi&es pa)in. instalments an& the rest o+ )our income ta1, )our
main obli.ations as a ta1pa)er are
/a0 to 4eep recor&s an& provi&e in+ormation as re=uire& b)
D the Income Tax Assessment Act 19369 an&
D 7ivision $00 /'hich sets out substantiation rules0 o+ this
Act9 an&
/b0 to lo&.e income ta1 returns as re=uire& b)
D the Income Tax Assessment Act 1936.
Tax %i"e n#m&ers
/20 In&er (art VA o+ the Income Tax Assessment Act 1936, a ta1 +ile
number can be issue& to )ou. @ou are not obli.e& to appl) +or a ta1
+ile number. >o'ever, i+ )ou &o not =uote one in certain situations
D )ou ma) become liable +or instalments o+ income
ta1 that 'oul& not other'ise have been pa)able9
D the amount o+ certain o+ )our instalments o+
income ta1 ma) be increase&.
3*1 8our o!li%ations other than as a taxpa.er
@our main obli.ations un&er the income ta1 la', other than as a
ta1pa)er are
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6ection !0#10
D in certain situations, to &e&uct +rom mone) )ou
o'e to another person, an& to remit to the
,ommissioner, instalments o+ income ta1 pa)able
b) that person.
6ee (art 4#5 /,ollection o+ income ta1 instalments0,
startin. at section "50#1.
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6ection !0#5
(art 1*3-Core pro$isions
+i$ision 6-1o2 to 2or9 out t"e income tax pa.a!le on
.our taxa!le income
Ta!le o& sections
4#1 Aho must pa) income ta1
4#5 Meanin. o+ yo#
4#10 >o' to 'or4 out ho' much income ta1 )ou must pa)
4#15 >o' to 'or4 out )our ta1able income
4#25 6pecial provisions +or 'or4in. out )our basic income ta1 liabilit)
6*1 4"o must pa. income tax
-ncome ta1 is pa)able b) each in&ivi&ual an& compan), an& b)
some other entities.
Note The actual amount o+ income ta1 pa)able ma) be nil.
Eor a list o+ the entities that must pa) income ta1,
see 7ivision $, startin. at section $#1.
6* 'eanin% o& you
-+ a provision o+ this Act uses the e1pression you, it applies to
entities .enerall), unless its application is e1pressl) limite&.
Note 1 The e1pression you is not use& in provisions that appl) onl) to entities
that are not in&ivi&uals.
Note 2 Eor circumstances in 'hich the i&entit) o+ an entit) that is a mana.e&
investment scheme +or the purposes o+ the Corporations Act $001 is
not a++ecte& b) chan.es to the scheme, see 6ub&ivision $60#% o+ the
Income Tax 'Transitiona" (ro!isions) Act 1997.
6*1, 1o2 to 2or9 out "o2 muc" income tax .ou must pa.
/10 @ou must pa) income ta1 +or each
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+inancial )ear.
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6ection !0#10
/20 @our income ta1 is 'or4e& out b) re+erence to )our ta1able income
+or the income year. The income )ear is the same as the
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+inancial
)ear, e1cept in these cases
/a0 +or a compan), the income )ear is the pre!io#s +inancial )ear9
/b0 i+ )ou have an accountin. perio& that is not the same as the
+inancial )ear, each such accountin. perio& or, +or a
compan), each previous accountin. perio& is an income )ear.
Note 1 The ,ommissioner can allo' )ou to a&opt an accountin. perio&
en&in. on a &a) other than !0 8une. 6ee section 18 o+ the Income Tax
Assessment Act 1936.
Note 2 An accountin. perio& en&s, an& a ne' accountin. perio& starts, 'hen
a partnership becomes, or ceases to be, a V,2(, an %6V,2(, an
AE*E or a V,M(. 6ee section 18A o+ the Income Tax Assessment Act
1936.
/!0 Aor4 out )our income ta1 +or the
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+inancial )ear as +ollo's
251658240

Method statement
6tep 1. Aor4 out )our ta1able income +or the income )ear.
To &o this, see section 4#15.
6tep 2. Aor4 out )our basic income ta1 liabilit) on )our
ta1able income usin.
/a0 the income ta1 rate or rates that appl) to )ou +or
the income )ear9 an&
/b0 an) special provisions that appl) to 'or4in. out
that liabilit).
6ee the Income Tax *ates Act 1986 an& section 4#25.
6tep !. Aor4 out )our ta1 o++sets +or the income )ear. A tax
offset re&uces the amount o+ income ta1 )ou have to
pa).
Eor the list o+ ta1 o++sets, see section 1!#1.
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6ection !0#5
6tep 4. 6ubtract )our
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ta1 o++sets +rom )our basic income ta1
liabilit). The result is ho' much income ta1 )ou o'e
+or the
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+inancial )ear.
Note 1 7ivision 6! e1plains 'hat happens i+ )our ta1 o++sets e1cee& )our
basic income ta1 liabilit). >o' the e1cess is treate& &epen&s on the
t)pe o+ ta1 o++set.
Note 2 -n a&&ition to the income ta1 'or4e& out un&er this section, )ou ma)
also have to pa) a&&itional income ta1 /4no'n as temporar) +loo& an&
c)clone reconstruction lev)0 +or the 2011#12 +inancial )ear. 6ee
section 4#10 o+ the Income Tax 'Transitiona" (ro!isions) Act 1997.
Income tax +or,ed o#t on another &asis
/40 Eor some entities, some or all o+ their income ta1 +or the
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+inancial
)ear is 'or4e& out b) re+erence to somethin. other than ta1able
income +or the income )ear.
6ee section $#5.
6*1 1o2 to 2or9 out .our taxa!le income
/10 Aor4 out )our taxable income +or the income )ear li4e this
251658240

Method statement
6tep 1. A&& up all )our assessable income +or the income )ear.
To +in& out about )our assessable income, see 7ivision 6.
6tep 2. A&& up )our &e&uctions +or the income )ear.
To +in& out 'hat )ou can &e&uct, see 7ivision 8.
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6ection !0#10
6tep !. 6ubtract )our &e&uctions +rom )our assessable income
/unless the) e1cee& it0. The result is )our ta1able
income. /-+ the &e&uctions e=ual or e1cee& the
assessable income, )ou &onJt have a ta1able income.0
Note -+ the &e&uctions e1cee& the assessable income, )ou ma) have a ta1
loss 'hich )ou ma) be able to utilise in that or a later income )ear
see 7ivision !6.
/20 There are cases 'here ta1able income is 'or4e& out in a special
'a)
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:or t"is case ... /ee:
1. A compan) &oes not maintain
continuit) o+ o'nership an& control
&urin. the income )ear an& &oes not
satis+) the same business test
6ub&ivision 165#?
1?.
An entit) is a
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member o+ a
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consoli&ate& .roup at an) time in the
income )ear
(art !#$0
2. A compan) becomes a (7E /poole&
&evelopment +un&0 &urin. the income
)ear, an& the (7E component +or the
income )ear is a nil amount
section 124HTA o+
the Income Tax
Assessment Act 1936
!. A shipo'ner or charterer
has its principal place o+ business
outsi&e Australia9 an&
carries passen.ers, +rei.ht or mail
shippe& in Australia
section 12$ o+ the
-ncome Tax
Assessment Act 1936
4. An insurer 'ho is a +orei.n resi&ent
enters into insurance contracts
connecte& 'ith Australia
sections 142 an& 14!
o+ the Income Tax
Assessment Act 1936
5. The ,ommissioner ma4es a &e+ault or
special assessment o+ ta1able income
sections 16" an& 168
o+ the Income Tax
Assessment Act 1936
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6ection !0#5
6. The ,ommissioner ma4es a
&etermination o+ the amount o+ ta1able
income to prevent &ouble ta1ation in
certain treat) cases
section 24 o+ the
Internationa" Tax
A-reements Act 1953
Note A li+e insurance compan) can have a ta1able income o+ the compl)in.
superannuationKE>6A class an&Kor a ta1able income o+ the or&inar)
class +or the purposes o+ 'or4in. out its income ta1 +or an income
)ear see 6ub&ivision !20#7.
6*) /pecial pro$isions &or 2or9in% out .our !asic income tax
lia!ilit.
The +ollo'in. provisions ma) increase )our basic income ta1
liabilit) be)on& the liabilit) 'or4e& out simpl) b) appl)in. the
income ta1 rates to )our ta1able income
/a0 6ub&ivision !55#59
/b0 subsection !$2#!5/!0.
Note 1 6ub&ivision !55#5 increases some entitiesJ ta1 liabilit) b) re=uirin.
them to pa) e1tra income ta1 on .overnment recoupments relatin. to
3L7 activities +or 'hich entitlements to ta1 o++sets arise un&er
7ivision !55.
Note 2 6ubsection !$2#!5/!0 increases some primar) pro&ucersJ ta1 liabilit)
b) re=uirin. them to pa) e1tra income ta1 on their avera.in.
components 'or4e& out un&er 6ub&ivision !$2#,.
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6ection !0#10
+i$ision -1o2 to 2or9 out 2"en to pa. .our income tax
Ta!le o& /u!di$isions
5ui&e to 7ivision 5
5#A >o' to 'or4 out 'hen to pa) )our income ta1
0uide to +i$ision
*1 4"at t"is +i$ision is a!out
-+ )our assesse& income ta1 liabilit) e1cee&s the cre&its
available to )ou un&er the (A@5 s)stem, this 7ivision e1plains
+hen )ou must pa) the e1cess to the ,ommissioner.
-+ )our assessment is amen&e& so that )ou must pa) income ta1,
or pa) more income ta1 than un&er the previous assessment, this
7ivision e1plains
/a0 +hen )ou must pa) the a&&itional ta19 an&
/b0 +hen an) associate& interest char.es must be
pai&.
Note Eor provisions about the collection an& recover) o+
income ta1 an& other ta1#relate& liabilities, see
(art 4#15 in 6che&ule 1 to the Taxation
/u!di$ision *A-1o2 to 2or9 out 2"en to pa. .our income
tax
Ta!le o& sections
5#5 Ahen income ta1 is pa)able
5#10 Ahen short+all interest char.e is pa)able
5#15 5eneral interest char.e pa)able on unpai& income ta1 or short+all interest
char.e
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$0 Income Tax Assessment Act 1997
6ection !0#5
* 4"en income tax is pa.a!le
.cope
/10 This section tells )ou 'hen income ta1 )ou must pa) +or a
<
+inancial )ear is &ue an& pa)able.
Note The ,ommissioner ma) &e+er the time at 'hich the income ta1 is &ue
an& pa)able see section 255#10 in 6che&ule 1 to the Taxation
/20 The income ta1 is onl) &ue an& pa)able i+ the ,ommissioner
ma4es an
<
assessment o+ )our income ta1 +or the )ear.
/!0 >o'ever, i+ the ,ommissioner &oes ma4e an
<
assessment o+ )our
income ta1 +or the )ear, the ta1 ma) be ta4en to have been &ue an&
pa)able at a time be+ore )our assessment 'as ma&e.
Note This is to ensure that .eneral interest char.e be.ins to accrue +rom the
same &ate +or all li4e entities. 5eneral interest char.e on unpai&
income ta1 is calculate& +rom 'hen the ta1 is &ue an& pa)able, not
+rom 'hen the assessment is ma&e see section 5#15.
/ri-ina" assessments0se"%1assessment entities
/40 -+ )ou are a
<
sel+#assessment entit), the income ta1 is &ue an&
pa)able on the +irst &a) o+ the si1th month a+ter the en& o+ the
income )ear.
%1ample -+ )our income )ear is the same as the +inancial )ear, )our income ta1
'oul& be &ue an& pa)able on 1 7ecember.
/ri-ina" assessments0other entities
/50 -+ )ou are not a
<
sel+#assessment entit), the income ta1 is &ue an&
pa)able 21 &a)s a+ter the &a) /the return day0 on or be+ore 'hich
)ou are re=uire& to lo&.e )our
<
income ta1 return 'ith the
,ommissioner.
Note Eor rules about income ta1 returns an& 'hen the) are &ue, see (art -V
o+ the Income Tax Assessment Act 1936.
/60 >o'ever, i+ )ou lo&.e )our return on or &e%ore the return &a) an&
the ,ommissioner .ives )ou a notice o+
<
assessment /other than an
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
Income Tax Assessment Act 1997 $1
6ection !0#10
amen&e& assessment0 a%ter the return &a), the income ta1 is &ue
an& pa)able 21 &a)s a+ter the ,ommissioner .ives )ou the notice.
Amended assessments
/"0 -+ the ,ommissioner amen&s )our
<
assessment, an) e1tra income
ta1 resultin. +rom the amen&ment is &ue an& pa)able 21 &a)s a+ter
the &a) on 'hich the ,ommissioner .ives )ou notice o+ the
amen&e& assessment.
Note 6hort+all interest char.e ma) be pa)able, on an) amount o+ e1tra
income ta1 pa)able as a result o+ the amen&e& assessment, +or each
&a) in the perio& that
/a0 starts at the time income ta1 'as &ue an& pa)able on )our
ori.inal assessment9 an&
/b0 en&s the &a) be+ore the &a) on 'hich the ,ommissioner .ives
)ou notice o+ the amen&e& assessment.
*1, 4"en s"ort&all interest c"ar%e is pa.a!le
An amount o+
<
short+all interest char.e that )ou are liable to pa) is
&ue an& pa)able 21 &a)s a+ter the &a) on 'hich the ,ommissioner
.ives )ou notice o+ the char.e.
Note 6hort+all interest char.e is impose& i+ the ,ommissioner amen&s an
assessment an& the amen&e& assessment results in an increase in some
ta1 pa)able. Eor provisions about liabilit) +or short+all interest char.e,
see 7ivision 280 in 6che&ule 1 to the Taxation Administration Act
1953.
*1 0eneral interest c"ar%e pa.a!le on unpaid income tax or
s"ort&all interest c"ar%e
-+ an amount o+ income ta1 or
<
short+all interest char.e that )ou are
liable to pa) remains unpai& a+ter the time b) 'hich it is &ue to be
pai&, )ou are liable to pa) the
<
.eneral interest char.e on the
unpai& amount +or each &a) in the perio& that
/a0 starts at the be.innin. o+ the &a) on 'hich the amount 'as
&ue to be pai&9 an&
/b0 +inishes at the en& o+ the last &a) on 'hich, at the en& o+ the
&a), an) o+ the +ollo'in. remains unpai&
/i0 the income ta1 or short+all interest char.e9
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
$$ Income Tax Assessment Act 1997
6ection !0#5
/ii0 .eneral interest char.e on an) o+ the income ta1 or
short+all interest char.e.
Note 1 The .eneral interest char.e is 'or4e& out un&er (art --A o+ the
Taxation Administration Act 1953.
Note 2 6hort+all interest char.e is 'or4e& out un&er 7ivision 280 in
6che&ule 1 to that Act.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
+i$ision 6-Assessa!le income and exempt income
0uide to +i$ision 6
Ta!le o& sections
6#1 7ia.ram sho'in. relationships amon. concepts in this 7ivision
7perati$e pro$isions
6#5 -ncome accor&in. to or&inar) concepts /ordinary income0
6#10 *ther assessable income /stat#tory income0
6#15 Ahat is not assessable income
6#20 %1empt income
6#2! Non#assessable non#e1empt income
6#25 3elationships amon. various rules about or&inar) income
6*1 +ia%ram s"o2in% relations"ips amon% concepts in t"is +i$ision
Non-assessable
Exempt income
Assessableincome
Ordinaryincome
Statutoryincome
non-exempt income
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
/10 Assessable income consists o+ or&inar) income an& statutor)
income.
/20 6ome or&inar) income, an& some statutor) income, is e1empt
income.
/!0 %1empt income is not assessable income.
/40 6ome or&inar) income, an& some statutor) income, is neither
assessable income nor e1empt income.
Eor the e++ect o+ the 56T in 'or4in. out assessable income, see 7ivision 1".
/50 An amount o+ or&inar) income or statutor) income can have onl)
one status /that is, assessable income, e1empt income or
non#assessable non#e1empt income0 in the han&s o+ a particular
entit).
*perative provisions
6#5 -ncome accor&in. to or&inar) concepts /ordinary income0
/10 @our assessable income inclu&es income accor&in. to or&inar)
concepts, 'hich is calle& ordinary income.
Note 6ome o+ the provisions about assessable income liste& in section 10#5
ma) a++ect the treatment o+ or&inar) income.
/20 -+ )ou are an Australian resi&ent, )our assessable income inclu&es
the
<
or&inar) income )ou
<
&erive& &irectl) or in&irectl) +rom all
sources, 'hether in or out o+ Australia, &urin. the income )ear.
/!0 -+ )ou are a +orei.n resi&ent, )our assessable income inclu&es
/a0 the
<
or&inar) income )ou
<
&erive& &irectl) or in&irectl) +rom
all
<
Australian sources &urin. the income )ear9 an&
/b0 other
<
or&inar) income that a provision inclu&es in )our
assessable income +or the income )ear on some basis other
than havin. an
<
Australian source.
/40 -n 'or4in. out 'hether )ou have derived an amount o+
<
or&inar)
income, an& /i+ so0 'hen )ou derived it, )ou are ta4en to have
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
receive& the amount as soon as it is applie& or &ealt 'ith in an)
'a) on )our behal+ or as )ou &irect.
6#10 *ther assessable income /stat#tory income0
/10 @our assessable income also inclu&es some amounts that are not
<
or&inar) income.
Note These are inclu&e& b) provisions about assessable income.
Eor a summar) list o+ these provisions, see section 10#5.
/20 Amounts that are not
<
or&inar) income, but are inclu&e& in )our
assessable income b) provisions about assessable income, are
calle& statutory income.
Note 1 Althou.h an amount is statutor) income because it has been inclu&e&
in assessable income un&er a provision o+ this Act, it ma) be ma&e
e1empt income or non#assessable non#e1empt income un&er another
provision see sections 6#20 an& 6#2!.
Note 2 Man) provisions in the summar) list in section 10#5 contain rules
about or&inar) income. These rules &o not chan.e its character as
or&inar) income.
/!0 -+ an amount 'oul& be
<
statutor) income apart +rom the +act that
)ou have not receive& it, it becomes statutor) income as soon as it
is applie& or &ealt 'ith in an) 'a) on )our behal+ or as )ou &irect.
/40 -+ )ou are an Australian resi&ent, )our assessable income inclu&es
)our
<
statutor) income +rom all sources, 'hether in or out o+
Australia.
/50 -+ )ou are a +orei.n resi&ent, )our assessable income inclu&es
/a0 )our
<
statutor) income +rom all
<
Australian sources9 an&
/b0 other
<
statutor) income that a provision inclu&es in )our
assessable income on some basis other than havin. an
<
Australian source.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
6#15 Ahat is not assessable income
/10 -+ an amount is not
<
or&inar) income, an& is not
<
statutor) income,
it is not assessable income /so )ou &o not have to pa) income ta1
on it0.
/20 -+ an amount is
<
e1empt income, it is not assessable income.
Note -+ an amount is e1empt income, there are other conse=uences besi&es
it bein. e1empt +rom income ta1. Eor e1ample
0< the amount ma) be ta4en into account in 'or4in. out the amount
o+ a ta1 loss /see section !6#1009
1< )ou cannot &e&uct as a .eneral &e&uction a loss or out.oin.
incurre& in &erivin. the amount /see 7ivision 809
2< capital .ains an& losses on assets use& solel) to pro&uce e1empt
income are &isre.ar&e& /see section 118#120.
/!0 -+ an amount is
<
non#assessable non#e1empt income, it is not
assessable income.
Note 1 @ou cannot &e&uct as a .eneral &e&uction a loss or out.oin. incurre&
in &erivin. an amount o+ non#assessable non#e1empt income /see
7ivision 80.
Note 2 ,apital .ains an& losses on assets use& to pro&uce some t)pes o+
non#assessable non#e1empt income are &isre.ar&e& /see
section 118#120.
6#20 %1empt income
/10 An amount o+
<
or&inar) income or
<
statutor) income is exempt
income i+ it is ma&e e1empt +rom income ta1 b) a provision o+ this
Act or another
<
,ommon'ealth la'.
Eor summar) lists o+ provisions about e1empt income,
see sections 11#5 an& 11#15.
/20
<
*r&inar) income is also exempt income to the e1tent that this Act
e1clu&es it /e1pressl) or b) implication0 +rom bein. assessable
income.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
/!0 ?) contrast, an amount o+
<
statutor) income is exempt income
onl) i+ it is ma&e e1empt +rom income ta1 b) a provision o+ this
Act outsi&e this 7ivision or another
<
,ommon'ealth la'.
/40 -+ an amount o+
<
or&inar) income or
<
statutor) income is
<
non#assessable non#e1empt income, it is not exempt income.
Note An amount o+ non#assessable non#e1empt income is not ta4en into
account in 'or4in. out the amount o+ a ta1 loss.
6#2! Non#assessable non#e1empt income
An amount o+
<
or&inar) income or
<
statutor) income is
non-assessable non-exempt income i+ a provision o+ this Act or o+
another
<
,ommon'ealth la' states that it is not assessable income
an& is not
<
e1empt income.
Note ,apital .ains an& losses on assets use& to pro&uce some t)pes o+
non#assessable non#e1empt income are &isre.ar&e& /see
section 118#120.
Eor a summar) list o+ provisions about non#assessable non#e1empt income, see
6ub&ivision 11#?.
6#25 3elationships amon. various rules about or&inar) income
/10 6ometimes more than one rule inclu&es an amount in )our
assessable income
D the same amount ma) be
<
or&inar) income an& ma) also
be inclu&e& in )our assessable income b) one or more
provisions about assessable income9 or
D the same amount ma) be inclu&e& in )our assessable
income b) more than one provision about assessable
income.
Eor a summar) list o+ the provisions about assessable income,
see section 10#5.
>o'ever, the amount is inclu&e& onl) once in )our assessable
income +or an income )ear, an& is then not inclu&e& in )our
assessable income +or an) other income )ear.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
/20 Inless the contrar) intention appears, the provisions o+ this Act
/outsi&e this (art0 prevail over the rules about
<
or&inar) income.
Note This Act contains some speci+ic provisions about ho' +ar the rules
about or&inar) income prevail over the other provisions o+ this Act.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
7ivision 8M7e&uctions
Table o+ sections
8#1 5eneral &e&uctions
8#5 6peci+ic &e&uctions
8#10 No &ouble &e&uctions
8#1 5eneral &e&uctions
/10 @ou can deduct +rom )our assessable income an) loss or out.oin.
to the e1tent that
/a0 it is incurre& in .ainin. or pro&ucin. )our assessable income9
or
/b0 it is necessaril) incurre& in carr)in. on a
<
business +or the
purpose o+ .ainin. or pro&ucin. )our assessable income.
Note 7ivision !5 prevents losses +rom non#commercial business activities
that ma) contribute to a ta1 loss bein. o++set a.ainst other assessable
income.
/20 >o'ever, )ou cannot &e&uct a loss or out.oin. un&er this section
to the e1tent that
/a0 it is a loss or out.oin. o+ capital, or o+ a capital nature9 or
/b0 it is a loss or out.oin. o+ a private or &omestic nature9 or
/c0 it is incurre& in relation to .ainin. or pro&ucin. )our
<
e1empt
income or )our
<
non#assessable non#e1empt income9 or
/&0 a provision o+ this Act prevents )ou +rom &e&uctin. it.
Eor a summar) list o+ provisions about &e&uctions, see section 12#5.
/!0 A loss or out.oin. that )ou can &e&uct un&er this section is calle& a
general deduction.
Eor the e++ect o+ the 56T in 'or4in. out &e&uctions, see 7ivision 2".
Note -+ )ou receive an amount as insurance, in&emnit) or other recoupment
o+ a loss or out.oin. that )ou can &e&uct un&er this section, the
amount ma) be inclu&e& in )our assessable income see
6ub&ivision 20#A.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
8#5 6peci+ic &e&uctions
/10 @ou can also deduct +rom )our assessable income an amount that a
provision o+ this Act /outsi&e this 7ivision0 allo's )ou to &e&uct.
/20 6ome provisions o+ this Act prevent )ou +rom &e&uctin. an amount
that )ou coul& other'ise &e&uct, or limit the amount )ou can
&e&uct.
/!0 An amount that )ou can &e&uct un&er a provision o+ this Act
/outsi&e this 7ivision0 is calle& a specific deduction.
Note -+ )ou receive an amount as insurance, in&emnit) or other recoupment
o+ a &e&uctible e1pense, the amount ma) be inclu&e& in )our
assessable income see 6ub&ivision 20#A.
Eor a summar) list o+ provisions about &e&uctions, see section 12#5.
8#10 No &ouble &e&uctions
-+ 2 or more provisions o+ this Act allo' )ou &e&uctions in respect
o+ the same amount /'hether +or the same income )ear or &i++erent
income )ears0, )ou can &e&uct onl) un&er the provision that is
most appropriate.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
(art 1#4M,hec4lists o+ 'hat is covere& b) concepts
use& in the core provisions
7ivision $M%ntities that must pa) income ta1
Table o+ sections
$#1A %++ect o+ this 7ivision
$#1 2ist o+ entities
$#5 %ntities that 'or4 out their income ta1 b) re+erence to somethin. other than
ta1able income
$#1A %++ect o+ this 7ivision
This 7ivision is a
<
5ui&e.
$#1 2ist o+ entities
-ncome ta1 is pa)able b) the entities liste& in the table.
(rovisions o+ the Income Tax Assessment Act 1997 are i&enti+ie& in
normal te1t. The other provisions, in !old, are provisions o+ the
Income Tax Assessment Act 1936.
Ite
m
Income tax is pa.a!le !. t"is 9ind o&
entit.:
!ecause o& t"is
pro$ision:
1 An in&ivi&ual section 4#1
2 A compan), that is
a bo&) corporate9 or
an unincorporate& bo&) /e1cept a
partnership0
section 4#1
! A compan) that 'as a member o+ a
'holl)#o'ne& .roup i+ a +ormer subsi&iar) in
the .roup is treate& as havin. &ispose& o+
lease& plant an& &oes not pa) all o+ the
income ta1 resultin. +rom that treatment
section 45#25
4 A superannuation provi&er in relation to a
compl)in. superannuation +un&
sections 2$5#5
an& 2$5#605
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
non#compl)in. superannuation +un&
sections 2$5#5
an& 2$5#605
compl)in. approve& &eposit +un&
section 2$5#5
" A superannuation provi&er in relation to a
non#compl)in. approve& &eposit +un&
section 2$5#5
8 The trustee o+ a poole& superannuation trust section 2$5#5
8A An E>6A provi&er in relation to an E>6A
trust
section !45#5
$ A corporate limite& partnership section 96;
10 A mutual insurance association /as &escribe&
in section 1210
section 1)1
11 A trustee /e1cept one covere& b) another
item in this table0, but onl) in respect o+
some 4in&s o+ income o+ the trust
sections 98, 99,
99A and 1,)
12 The trustee o+ a corporate unit trust section 1,)<
1! The trustee o+ a public tra&in. trust section 1,)/
$#5 %ntities that 'or4 out their income ta1 b) re+erence to somethin.
other than ta1able income
/10 Eor some entities, some or all o+ their income ta1 +or the
<
+inancial
)ear is 'or4e& out as &escribe& in the table.
Ite
m
T"is 9ind o& entit. is lia!le to pa.
income tax 2or9ed out !. re&erence to:
/ee:
1 A compan) that 'as a member o+ a
'holl)#o'ne& .roup is :ointl) an&
severall) liable to pa) an amount o+
income ta1 i+ a +ormer subsi&iar) in the
.roup is treate& as havin. &ispose& o+
lease& plant an& &oes not pa) all o+ the
income ta1 resultin. +rom that treatment.
section 45#25
2 A superannuation provi&er in relation to a sections 2$5#5
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
compl)in. superannuation +un& is to be
assesse& an& is liable to pa) income ta1 on
no#TEN contributions income as 'ell as on
ta1able income.
an& 2$5#605
! A superannuation provi&er in relation to a
non#compl)in. superannuation +un& is to
be assesse& an& is liable to pa) income ta1
on no#TEN contributions income as 'ell as
on ta1able income.
sections 2$5#5
an& 2$5#605
4 An 36A provi&er is to be assesse& an& is
liable to pa) income ta1 on no#TEN
contributions income as 'ell as on ta1able
income.
sections 2$5#5,
2$5#605 an&
!20#155
4A An entit) is liable to pa) e1tra income ta1
on .overnment recoupments relatin. to
3L7 activities +or 'hich entitlements to
ta1 o++sets arise un&er 7ivision !55.
6ub&ivision !55#
5
5 An Australian resi&ent in&ivi&ual 'ith
eli.ible +orei.n remuneration un&er
section 2!AE9 or
+orei.n earnin.s un&er section 2!A59
/+rom 'or4in. in a +orei.n countr)0 is
liable to pa) income ta1 'or4e& out b)
re+erence to his or her assessable income
less some o+ his or her &e&uctions.
section )3A: or
)3A0
6 A trustee covere& b) item 11 in the table in
section $#1 is liable to pa) income ta1
'or4e& out b) re+erence to the net income
o+ the trust +or the income )ear.
sections 98, 99
and 99A
" The trustee o+ a corporate unit trust is
re+erence to the net income o+ the trust +or
the income )ear.
section 1,)<
8 The trustee o+ a public tra&in. trust is
re+erence to the net income o+ the trust +or
the income )ear.
section 1,)/
$ An entit) that is liable to pa) income ta1
/'or4e& out b) re+erence to ta1able
section 1)11
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
income or other'ise0 is also liable to pa)
income ta1 'or4e& out b) re+erence to
&iverte& income or &iverte& trust income
+or the income )ear.
10 An Australian insurer that re#insures
overseas can elect to pa), as a.ent +or the
re#insurer, income ta1 'or4e& out b)
re+erence to the amount o+ the re#insurance
premiums.
section 168
/20 Eor entities covere& b) an item in the table in subsection /10, the
income year is the same as the
<
+inancial )ear, e1cept in these
cases
/a0 +or a compan), or an entit) covere& b) item 2 or ! in the
table, the income )ear is the pre!io#s +inancial )ear9
/b0 i+ an entit) has an accountin. perio& that is not the same as
the +inancial )ear, each such accountin. perio& or, +or a
compan), each previous accountin. perio& is an income )ear.
Note 1 The ,ommissioner can allo' an entit) to a&opt an accountin. perio&
en&in. on a &a) other than !0 8une. 6ee section 18 o+ the Income Tax
Note 2 An accountin. perio& en&s, an& a ne' accountin. perio& starts, 'hen
a partnership becomes, or ceases to be, a V,2(, an %6V,2(, an
AE*E or a V,M(. 6ee section 18A o+ the Income Tax Assessment Act
1936.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
7ivision 10M(articular 4in&s o+ assessable income
10#1 %++ect o+ this 7ivision
This 7ivision is a
<
5ui&e.
10#5 2ist o+ provisions about assessable income
The provisions set out in the table
D inclu&e in )our assessable income amounts that are not
<
or&inar) income9 an&
D var) or replace the rules that 'oul& other'ise appl) +or
certain 4in&s o+
<
or&inar) income.
Accrue& leave trans+er pa)ments
................................................................................
15#5
alienate& personal services income
................................................................................
86#15
allo'ances
see emp"oyment
annual leave
see "ea!e payments
annuities
................................................................................
)71
approve& &eposit +un& /A7Es0
see s#perann#ation
attributable income
see contro""ed %orei-n corporations
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
avoi&ance o+ ta1
.eneral
................................................................................
177:
&iversion o+ income
................................................................................
1)11
see also trans%ers o% income
ba& &ebts
see reco#pment
balancin. a&:ustment
see capita" a""o+ances, in!estments, *34, scienti%ic
research an& tax exempt entities
ban4in.
o++shore ban4in. activities, income +rom
................................................................................
1)150=1>
o++shore ban4in. unit, &eeme& interest on pa)ments
to b) o'ner
................................................................................
1)15<
barter transactions
..........
................................................................................
)1, )1A, 15#2
bene+iciaries
see tr#sts
bene+its
business, non#cash
................................................................................
)1A
consi&eration, non#cash
................................................................................
)1
meals )ou provi&e in an in#house &inin. +acilit)
................................................................................
!2#"0
see also emp"oyment an& s#perann#ation
bonus shares
see shares
bounties
..........
................................................................................
15#10
capital allo'ances
e1cess o+ termination value over a&:ustable value
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
.enerall)
....................................................................
40#285
+or some cars
....................................................................
40#!"0
&epreciatin. asset in lo'#value pool
................................................................................
40#445/20
e1pen&iture in so+t'are &evelopment pool
................................................................................
40#460
recover) o+ petroleum resource rent ta1
................................................................................
40#"50/!0
capital .ains
................................................................................
102#5
see also ins#rance
car e1penses
cents per 4ilometres reimbursement o+
................................................................................
15#"0
carrie& interests
carrie& interests, not or&inar) income
................................................................................
118#21
,E,s
see contro""ed %orei-n corporations
charters
see shippin-
chil&
non#trust income o+, unearne&
................................................................................
1,)A5
trust income o+, unearne&
................................................................................
1,)A0
collectin. societies
pa)ments o+ ro)alties b) cop)ri.ht collectin.
societies
................................................................................
15#22
pa)ments o+ ro)alties b) resale ro)alt) collectin.
societ)
................................................................................
15#2!
compan)
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
see contro""ed %orei-n corporations, co1operati!e
company, directors, di!idends, "i5#idation,
shareho"ders an& shares
compensation
live stoc4 or trees, recoveries +or loss o+
................................................................................
!85#1!0
pro+its or income, insurance or in&emnit) +or loss o+
................................................................................
15#!0
receive& b) lessor +or lesseeJs non#compliance 'ith
lease obli.ation to repair
................................................................................
15#25
tra&in. stoc4, insurance or in&emnit) +or loss o+
................................................................................
"0#115
see also ins#rance, "i!e stoc,, reco#pment an&
scienti%ic research
consi&eration
see &ene%its
consoli&ate& .roups an& M%, .roups
Assets in relation to 7ivision 2!0 +inancial
arran.ement
................................................................................
"01#61/!0
controlle& +orei.n corporations /,E,s0
attributable income o+
................................................................................
66 to 69A
see also di!idends an& taxes
co#operative compan)
receipts o+
................................................................................
119
cre&it union
see co1operati!e company
currenc) .ains
see %orei-n exchan-e
currenc) losses
see reco#pment
&eath
see tr#sts
&ebtKe=uit) s'ap
see shares an& #nits
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
&e+ence +orces
allo'ances an& bene+its +or service as a member o+
................................................................................
15#2
&epreciation
see capita" a""o+ances
&irectors
e1cessive remuneration or retirement pa)ment +rom
compan)
................................................................................
1,9
&istributions
see di!idends
&ivi&en&s
bene+it o+ 2-, capital .ain throu.h a trust or
partnership
................................................................................
115#280
.eneral
................................................................................
66=1>
&istribution +rom a controlle& +orei.n corporation
................................................................................
67A=1>
+ran4e& &ivi&en&s, cre&its on
................................................................................
20"#20/10, 20"#!5/10,
20"#!5/!0
see also "i5#idation
elections
local .overnment, reimbursement o+ e1penses o+
................................................................................
25#65
see also reco#pment
electricit) connections
see reco#pment
emplo)ees
see shares
emplo)ment
allo'ances an& bene+its in relation to emplo)ment or
ren&erin. services
................................................................................
15#2
emplo)ment termination pa)ment
................................................................................
82#10
82#65
82#"0
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
other pa)ments +or emplo)ment termination
................................................................................
8!#2$5
return to 'or4 pa)ments
................................................................................
15#!
see accr#ed "ea!e trans%er payments6 "ea!e payments,
s#perann#ation an& sections 82#10A an& 82#10,
o+ the Income Tax 'Transitiona" (ro!isions) Act
1997
environment
see reco#pment
&arm mana%ement deposits
repa)ments o+
................................................................................
!$!#10
+ilms
Australian, procee&s o+ investment in
................................................................................
)6A0
+inancial arran.ements
.ains +rom
................................................................................
2!0#15/10
+irst home saver accounts
emplo)er E>6A contributions etc.
................................................................................
15#80
+orei.n e1chan.e
.ains
................................................................................
""5#15
see also reco#pment
+orestr) a.reement
amount 'here section 82NHM5 o+ the 1$!6 Act
applies
................................................................................
15#45
,5T event in relation to +orestr) interest in
a.reement
................................................................................
82NHM5?
+orestr) mana.e& investment schemes
+orestr) mana.erJs receipts un&er scheme
................................................................................
15#46
,5T event in relation to +orestr) interest in scheme
+or initial participant
................................................................................
!$4#25/20
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
,5T event in relation to +orestr) interest in scheme
+or subse=uent participant
................................................................................
!$4#!0/20
+ran4e& &ivi&en&s
see di!idends
+uneral polic)
bene+it un&er
................................................................................
15#55
.eneral insurance companies an& companies that sel+ insure
.ross premiums
................................................................................
!21#45
re&uction in value o+ outstan&in. claims liabilit)
................................................................................
!21#10 an& !21#80
re&uction in value o+ unearne& premium reserve
................................................................................
!21#50
.eothermal ener.)
provi&in. .eothermal e1ploration in+ormation
................................................................................
t
15#40
.rapevines
see reco#pment
horticultural plants
see reco#pment
improvements
see "eases
imputation
see di!idends
in&emnit)
see compensation an& reco#pment
in+rastructure borro'in.s
see interest
insurance
bonuses
................................................................................
)6A1, 15#"5
compan), &emutualisation o+
................................................................................
1)1AT
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
li+e insurance, trans+er o+ contributions b)
superannuation +un& or approve& &eposit +un& to
................................................................................
2$5#260
pa)ments +rom a non#resi&ent reinsurer in respect
o+ a loss
................................................................................
168
premiums in respect o+ Australian business receive&
b) non#resi&ent insurers
................................................................................
163
premiums pai& to a non#resi&ent +or reinsurance
................................................................................
168
premiums pai& to mutual insurance association
................................................................................
1)1
premiums pa)able to a non#resi&ent +or insurance o+
propert) in Australia
................................................................................
16)=1>
premiums pa)able to a non#resi&ent +or insurin. an
event that can onl) happen in Australia
................................................................................
16)=1>
premiums pa)able to a non#resi&ent un&er an
insurance contract 'ith a resi&ent
................................................................................
16)=)>
rebates an& premiums re+un&e& to a superannuation
+un& trustee
................................................................................
2$5#!20 /table
item 40
see also compensation, "i%e ins#rance companies an&
reco#pment
interest
in+rastructure borro'in.s, on
................................................................................
190????0
loans raise& in Australia b) +orei.n .overnments, on
................................................................................
)7
overpai& ta1, on
................................................................................
15#!5
=uali+)in. securities, on
................................................................................
190@, 1904=1>
see also co1operati!e companies an& "eases
investments
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
non#interest bearin. ,ommon'ealth securities, .ains
on &isposal or re&emption o+
................................................................................
)6C
priFes +rom investment#relate& lotteries
................................................................................
)6A;
=uali+)in. securities, pa)ments to partial resi&ents
ma&e un&er
................................................................................
1904=)>
=uali+)in. securities, amount assessable to issuer o+
................................................................................
190T=13>
=uali+)in. securities, balancin. a&:ustment on the
trans+er o+
................................................................................
190/
securities, variation in terms o+
................................................................................
190V=)>
securities len&in. arran.ements
................................................................................
)63C
tra&itional securities, .ains on the &isposal or
re&emption o+
................................................................................
)633
see also %i"ms an& interest
lan&care operations
see reco#pment
lease& plant ..................................................................................... 7ivision 45
leases
amounts receive& b) lessor +rom lessee +or
non#compliance 'ith lease obli.ation to repair
................................................................................
15#25
interest component o+ pa)ments un&er non#levera.e&
+inance leases
................................................................................
190<
partnership leasin. propert) un&er non#levera.e&
+inance lease, ne' partner or contribution o+
capital since 14 Ma) 1$85
................................................................................
1907
premiums relatin. to assi.nment o+ a lease .rante&
be+ore 20 6eptember 1$85
................................................................................
)6A3
pro+it on &isposal o+ previousl) lease& motor vehicles
................................................................................
6ub&ivision 20#?
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
leases o+ lu1ur) cars
accrual amounts
................................................................................
242#!5
a&:ustment amounts /lessee0
................................................................................
242#"0
a&:ustment amounts /lessor0
................................................................................
242#65
leave pa)ments
accrue& leave trans+er pa)ment
................................................................................
15#5
unuse& annual leave pa)ment ..........
................................................................................
8!#10
unuse& lon. service leave pa)ment
................................................................................
8!#80
see emp"oyment
li+e insurance companies 6ub&ivision !20#?
limite& recourse &ebt
e1cessive &e&uction amount /&ebtor0
................................................................................
24!#40
e1cessive &e&uction amount /partner0
................................................................................
24!#65
li=ui&ation
&istribution to a sharehol&er in 'in&in. up a
compan)
................................................................................
67=1>
live stoc4
&eath or &estruction o+
................................................................................
6ub&ivision !85#%
&epartin. Australia an&
................................................................................
!85#160, !85#16!
insolvenc), an&
................................................................................
!85#160, !85#16!
pro+its on &eath or &isposal o+
................................................................................
6ub&ivision !85#%,
!85#160
see also compensation an& tradin- stoc,
lon. service leave
see "ea!e payments
losses
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
see compensation
lotteries
see in!estments
mana.e& investment trusts
.ains etc. +rom carrie& interests
................................................................................
2"5#200/20
meals
see &ene%its
minerals resource rent ta1
re+un& o+ e1cess rehabilitation ta1 o++sets 15#85
Minin.
provi&in. minin., =uarr)in. or prospectin.
in+ormation
................................................................................
15#40
minors
see chi"d
motor vehicles
see car expenses an& "eases
mutual insurance
see ins#rance
non#cash bene+its
see &ene%its an& emp"oyment
notional sales an& loans
................................................................................
240#110/20
................................................................................
240#105/20
notional interest
................................................................................
240#!5/10
pro+it on actual sale
................................................................................
240#!5/!0
pro+it on notional sale
................................................................................
240#!5/20
o++shore ban4in. units
see &an,in-
partnerships
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
net income o+, partnerJs interest in
................................................................................
9)=1>
uncontrolle& partnership income, e++ect o+
................................................................................
96
see also "eases
petroleum
resource rent ta1, recover) o+
................................................................................
20#!0/10
see also capita" a""o+ances
premiums
see ins#rance, "eases an& s#perann#ation
primar) pro&uction
see reco#pment
priFes
see in!estments
pro+its
cross#bor&er trans+er pricin.
................................................................................
815#!0
pro+it#ma4in. un&erta4in. or plan
................................................................................
15#15
sale o+ propert) ac=uire& be+ore 20 6eptember 1$85
+or pro+it#ma4in. b) sale
................................................................................
)A
see also a!oidance o% tax
(ro:ect pools
An amount receive& +or the aban&onment, sale or
other &isposal o+ a pro:ect
................................................................................
40#8!0, 40#8!2
propert)
see pro%its an& tr#sts
=uarr)in.
see minin- an& reco#pment
3L7
................................................................................
40#2$2, 40#2$!,
!55#!15 an& !55#525
&isposal o+ 3L7 results
................................................................................
!55#410
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
+ee&stoc4 a&:ustment
................................................................................
!55#465
rates
see reco#pment
recoupment
insurance or in&emnit) +or &e&uctible losses or
out.oin.s
................................................................................
6ub&ivision 20#A
other recoupment +or certain &e&uctible losses or
out.oin.s
................................................................................
6ub&ivision 20#A
see also car expenses, compensation, e"ections an&
petro"e#m
re.istere& emissions units
&isposal o+
................................................................................
420#25
&isposal +or a non#commercial purpose..........
................................................................................
420#40
&i++erence bet'een openin. an& closin. value o+
................................................................................
420#45
reimbursements
see car expenses, di!idends, e"ections, %irst home
sa!er acco#nts6 petro"e#m an& reco#pment
reinsurance
see ins#rance
retirement pa)ments
see directors, "ea!e payments an& shareho"ders
ri.hts to income
see trans%ers o% income
roa&s
see tim&er
ro)alties
..........
................................................................................
15#20
schemes
see a!oidance o% tax
scholarship plan
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
bene+it un&er
................................................................................
15#60
scienti+ic research
consi&eration +or &isposal or &estruction o+ buil&in.s
ac=uire& +or scienti+ic research
................................................................................
73A=6>
securities
see in!estments
services
see co1operati!e companies, emp"oyment, "oans an&
tr#sts
sharehol&ers
e1cessive remuneration or retirement pa)ment +rom
compan)
................................................................................
1,9
loans, pa)ments an& cre&its +rom compan)
................................................................................
+i$ision 7A o&
(art III
see also di!idends
shares
ac=uire& in a &ebtKe=uit) s'ap, pro+it on the &isposal
cancellation or re&emption o+
................................................................................
635=6>
bonus shares, cost o+
................................................................................
63A
bu)#bac4s
................................................................................
190???; to
190???T
emplo)ee share schemes
................................................................................
6ub&ivisions
8!A#? an& 8!A#,
hol&in. compan) shares hel& b) a subsi&iar),
cancellation o+
................................................................................
190???C to
190???I
small#me&ium enterprise, pro+it on &isposal o+ shares
in
................................................................................
1)8T0 to 1)8TA
see also di!idends
shippin.
.oo&s shippe& in Australia, amounts pai& to +orei.n
shipo'ners an& charterers +or
................................................................................
1)9
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
small#me&ium enterprises /6M%s0
see shares
subsi&ies
..........
................................................................................
15#10
su.ar in&ustr) e1it .rants
........
................................................................................
15#65
superannuation
bene+its .enerall)
................................................................................
7ivisions !01 to !06
bene+its in breach o+ le.islative re=uirements
................................................................................
7ivision !04
bene+its receive& +rom ol&er superannuation +un&s
................................................................................
)6A:, )6A:A
compl)in. +un& becomes non#compl)in., e++ect o+
................................................................................
2$5#!20 /table
item 20
contributions to an approve& &eposit +un&
................................................................................
6ub&ivisions 2$5#,
an& 2$5#7
contributions to an 36A
................................................................................
6ub&ivision 2$5#,
contributions to a superannuation +un&
................................................................................
6ub&ivisions
2$5#, an& 2$5#7
&eath bene+its
................................................................................
!02#"5
!02#85
!02#$0
!02#145
e1cess concessional contributions
................................................................................
2$1#15/a0
+orei.n superannuation +un&s an& schemes, bene+its
+rom
................................................................................
!05#"0
member bene+its
................................................................................
!01#20
!01#25
!01#!5
!01#40
6ub&ivision !01#,
+orei.n +un& becomin. Australian, e++ect o+
................................................................................
2$5#!20 /table
item !0
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
no#TEN contributions income
................................................................................
2$5#605
release authorities, pa)ments +rom
................................................................................
!04#15/40
!04#20
returne& contributions
................................................................................
2$0#100
trusteeJs liabilit) to pa) ta1
................................................................................
2$5#5/20 an& /!0
see ins#rance
ta1 avoi&ance
see a!oidance o% tax an& trans%ers o% income
ta1 e1empt entities
treatment o+ income an& .ains on becomin. ta1able
................................................................................
/c"edule )+
ta1es
see di!idends, %orei-n in!estment %#nds, interest an&
reco#pment
termination o+ emplo)ment
see directors, e"i-i&"e termination payments, "ea!e
payments an& shareho"ders
the+t
see reco#pment
tra&in. stoc4
chan.e in interests in
................................................................................
"0#100
&eath o+ tra&er an&
................................................................................
"0#105
&i++erence bet'een openin. an& closin. value o+
................................................................................
"0#!5
&isposal not at armJs len.th
................................................................................
"0#20
&isposal o+ outsi&e or&inar) course o+ business
................................................................................
"0#$0, "0#$5
see also compensation an& tax exempt entities
trans+er pricin.
armJs len.th principle +or cross#bor&er con&itions
bet'een entities
................................................................................
6ub&ivision 815#?
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
armJs len.th principle +or permanent establishments
................................................................................
6ub&ivision 815#,
trans+ers o+ income
consi&eration +or trans+er o+ ri.ht to income
................................................................................
1,)CA
pa)ments +or trans+er or &isposal o+ propert)
................................................................................
)6)
trans+eree, e++ect on o+ trans+er o+ ri.ht to income
................................................................................
1,)C
trans+eror, e++ect on o+ trans+er o+ ri.ht to income
................................................................................
1,)3
travel e1penses
see car expenses
trusts
bene+iciar) un&er le.al &isabilit) or 'ith a veste& an&
in&e+easible interest in trust income
................................................................................
1,,
&ecease& estates, income o+
................................................................................
1,1A
&iscretionar) trusts
................................................................................
1,1
net income o+ a trust estate, )our present entitlement
to
97, 1,1
non#resi&ent bene+iciaries, liabilit) to ta1 o+
................................................................................
98A
non#resi&ent trust estates to 'hich )ou have
trans+erre& propert) or services, income o+
................................................................................
1,)AA?+
propert) o+ applie& +or bene+it o+ bene+iciaries
................................................................................
993
trust estate inclu&es income +rom another trust estate 96=>
trusteesJ liabilit) to ta1
................................................................................
98, 99, 99A, 1,),
1,)<, 1,)/
see also a!oidance o% tax an& s#perann#ation
unearne& income
see chi"d
units
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
ac=uire& in a &ebtKe=uit) s'ap, pro+it on the &isposal,
cancellation or re&emption o+
................................................................................
635=6>
'ater conservation
see reco#pment
'in&in.#up
see ins#rance an& "i5#idation
'ool clips
&ouble 'ool clips, treatment o+
................................................................................
!85#1!5, !85#155
'or4 in pro.ress
receipt o+ a 'or4 in pro.ress amount
................................................................................
15#50
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
7ivision 11M(articular 4in&s o+ non#assessable income
Table o+ 6ub&ivisions
11#A 2ists o+ classes o+ e1empt income
11#? (articular 4in&s o++ non#assessable non#e1empt income
6ub&ivision 11#AM2ists o+ classes o+ e1empt income
Table o+ sections
11#1A %++ect o+ this 6ub&ivision
11#1 *vervie'
11#5 %ntities that are e1empt, no matter 'hat 4in& o+ or&inar) or statutor)
income the) have
11#15 *r&inar) or statutor) income 'hich is e1empt
11#1A %++ect o+ this 6ub&ivision
This 6ub&ivision is a
<
5ui&e.
11#1 *vervie'
*r&inar) income or statutor) income 'hich is e1empt +rom income
ta1 can be &ivi&e& into 2 main classes
/a0 or&inar) or statutor) income o+ entities that are e1empt, no
matter 'hat 4in& o+ or&inar) or statutor) income the) have
/see table in section 11#509
/b0 or&inar) or statutor) income o+ a 4in& that is e1empt /see
table in section 11#150.
11#5 %ntities that are e1empt, no matter 'hat 4in& o+ or&inar) or
statutor) income the) have
Note 6pecial rules appl) to entities that cease to be e1empt. 6ee
6che&ule 27 to the Income Tax Assessment Act 1936.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
charit), e&ucation or science
e&ucational institution, public
.................................................................................
50#5
5lobal ,arbon ,apture an& 6tora.e -nstitute 2t&
.................................................................................
50#5
re.istere& charit)
.................................................................................
50#5
scienti+ic institution
.................................................................................
50#5
scienti+ic research +un&
.................................................................................
50#5
scienti+ic societ) etc.
.................................................................................
50#5
communit) service
communit) service societ) etc.
.................................................................................
50#10
emplo)ees an& emplo)ers
emplo)ee association
.................................................................................
50#15
emplo)er association
.................................................................................
50#15
tra&e union
.................................................................................
50#15
.overnment
constitutionall) protecte& +un&
.................................................................................
50#25
local .overnin. bo&)
.................................................................................
50#25
municipal corporation
.................................................................................
50#25
public authorit)
.................................................................................
50#25
stateKterritor) bo&ies
.................................................................................
)6A< to )6A?
health
health bene+its or.anisation
.................................................................................
50#!0
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
hospital
.................................................................................
50#!0
me&ical bene+its or.anisation
.................................................................................
50#!0
>-> rescue pac4a.e
>-> ,laims 6upport Trust
.................................................................................
!22#10
minin.
?ritish (hosphate ,ommissioners ?anaba
,ontin.enc) Eun&
.................................................................................
50#!5
primar) or secon&ar) resources, an& tourism
a.ricultural societ) etc.
.................................................................................
50#40
aviation societ) etc.
.................................................................................
50#40
horticultural societ) etc.
.................................................................................
50#40
in&ustrial societ) etc.
.................................................................................
50#40
manu+acturin. societ) etc.
.................................................................................
50#40
pastoral societ) etc.
.................................................................................
50#40
tourism societ) etc.
.................................................................................
50#40
viticultural societ) etc.
.................................................................................
50#40
sports, culture or recreation
animal racin. societ) etc.
.................................................................................
50#45
art societ) etc.
.................................................................................
50#45
.ame societ) etc.
.................................................................................
50#45
literature societ) etc.
.................................................................................
50#45
music societ) etc.
.................................................................................
50#45
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
sport societ) etc.
.................................................................................
50#45
11#15 *r&inar) or statutor) income 'hich is e1empt
a.ricultural in&ustr) e1it .rants
su.ar in&ustr) e1it .rants
................................................................................
5!#10
tobacco in&ustr) e1it .rants
................................................................................
5!#10
cop)ri.ht collectin. societies
51#4!
cre&it unions
interest
................................................................................
)30
&e+ence
7e+ence Abuse 3eparation 6cheme, pa)ments un&er
................................................................................
51#5
7e+ence Eorce member, allo'ances
................................................................................
51#5
7e+ence Eorce member, compensation pa)ments +or
loss o+ &eplo)ment allo'ance +or 'arli4e service
................................................................................
51#5
E#111 7esealK3eseal %1#.ratia 2ump 6um (a)ments
................................................................................
51#5
Eormer 3eserve 7e+ence Eorce member,
compensation pa)ments +or loss o+ pa) an&Kor
allo'ances
................................................................................
51#5
3eserve 7e+ence Eorce member, pa) an& allo'ances
................................................................................
51#5
&ivi&en&s or shares
poole& &evelopment +un& compan) &ivi&en&
................................................................................
1)6?'
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
poole& &evelopment +un& compan) shares, income
+rom sale o+
................................................................................
1)6?N
e&ucation an& trainin.
Apprenticeship Aa.e Top#Ip pa)ment, recipient o+
................................................................................
51#10
bursar), e&ucational allo'ance etc.
................................................................................
51#10 an& 51#!5
,ommon'ealth Tra&e 2earnin. 6cholarship,
recipient o+
................................................................................
51#10
,3AET scheme, emplo)erJs income +rom
................................................................................
51#10
earl) completion bonuses +or apprentices
................................................................................
51#10 an& 51#42
%n&eavour A'ar&s, research +ello'ship un&er
................................................................................
51#10
%n&eavour %1ecutive A'ar&
................................................................................
51#10
+orei.n stu&ent, scholarship an& bursar) to
................................................................................
842#105
+ull#time stu&ent, income +rom a scholarship, bursar),
other e&ucational allo'ance or e&ucational
assistance
................................................................................
51#10 an& 51#!5
>%,6#>%2( bene+it, recipient o+
................................................................................
51#10
isolate& chil&, income +or the provision o+ e&ucation
o+
................................................................................
51#10 an& 51#40
secon&ar) stu&ent, income +or the provision o+
e&ucation o+
................................................................................
51#10 an& 51#40
64ills +or 6ustainabilit) +or Australian Apprentices
pa)ment, recipient o+
................................................................................
51#10
Tools +or @our Tra&e pa)ment /un&er the pro.ram
4no'n as the Australian Apprenticeships
-ncentives (ro.ram0, recipient o+
................................................................................
51#10
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
+amil) assistance
bac4 to school bonus or sin.le income +amil) bonus
................................................................................
52#150
chil& care bene+it
................................................................................
52#150
chil& care rebate
................................................................................
52#150
clean ener.) a&vance
................................................................................
52#150
school4i&s bonus
................................................................................
52#150
economic securit) strate.) pa)ment to +amilies
................................................................................
52#150
%T3 pa)ment
................................................................................
52#150
%T3 pa)ment, pa)ments un&er the scheme
&etermine& un&er (art 2 o+ 6che&ule 1 to the
7ami"y Assistance and /ther e-is"ation
Amendment '.choo",ids 8on#s 8#d-et Meas#res)
Act $01$
................................................................................
52#162
+amilies, pa)ments to, un&er the scheme &etermine&
un&er 6che&ule 4 to the .ocia" .ec#rity and /ther
e-is"ation Amendment '9conomic .ec#rity
.trate-y) Act $008
................................................................................ 52#160
+amil) ta1 bene+it
................................................................................
52#150
:o#seho"d .tim#"#s (ac,a-e Act ';o2 $) $009,
pa)ments un&er scheme &etermine& un&er
6che&ule 4 to the
................................................................................ 52#165
sin.le income +amil) supplement
................................................................................
52#150
stillborn bab) pa)ment
................................................................................
52#150
.ains relate& to e1empt income
................................................................................
2!0#!0
+inancial transactions
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
in+rastructure borro'in.s, income in relation to
................................................................................
190????5
poole& &evelopment +un& compan) &ivi&en&s
................................................................................
1)6?'
poole& &evelopment +un& compan) shares, income
+rom sale o+
................................................................................
1)6?N
+orei.n aspects o+ income ta1ation
approve& overseas pro:ect, income +rom
................................................................................
)3A:
Australian#American %&ucation Eoun&ation, .rant
+rom
................................................................................
51#10
,ommon'ealth o+ Nations countr) o++icer, o++icial
salar) an& +orei.n income
................................................................................
"68#100
consul an& o++icial sta++ member, o++icial salar) an&
+orei.n income
................................................................................
"68#100
7e+ence Eorce member, +orei.n resi&ent, pa) an&
allo'ances o+
................................................................................
842#105
7e+ence Eorce member, pa) an& allo'ances +rom
bein. on eli.ible &ut)
................................................................................
)3A+
7e+ence Eorce member, pa) an& allo'ances +rom
per+ormin. &uties in operational areas
................................................................................
)3AC
&e+ence o+ Australia, overseas personJs income +rom
assistin. in AustraliaJs &e+ence
................................................................................
842#105
&iplomat an& o++icial sta++ member, o++icial salar) an&
+orei.n income
................................................................................
"68#100
e&ucational, scienti+ic, reli.ious or philanthropic
societ), income o+ a visitin. representative o+
................................................................................
842#105
e1pert, +orei.n resi&ent, remuneration o+
................................................................................
842#105
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
+orei.n societ) or association representative, income
o+
................................................................................
842#105
+ore1 realisation .ains, certain
................................................................................
""5#20
.overnment representative an& members o+ the
entoura.e, +orei.n resi&ent, income o+
................................................................................
842#105
*?I investment trusts +or overseas charitable
institutions
................................................................................
1)15A=)>
*?I o++#shore investment trusts, income to 'hich
subsection 1)1+=6> applies
................................................................................
1)15A
overseas charitable institutions, income +rom *?Is
................................................................................
1)15AA=1>
overseas emplo)ment income, resi&ent, income o+
................................................................................
)3A0
persecution victim, pa)ments to
................................................................................
"68#105
press representative, +orei.n, income o+
................................................................................
842#105
resistance +i.hter an& victim o+ 'artime persecution,
pa)ments to
................................................................................
"68#105
Territor) resi&ent compan) or trust, income +rom
sources outsi&e Australia
................................................................................
)6:
Territor) resi&ent, income +rom sources in a
prescribe& Territor)
................................................................................
)60
Inite& Nations, income +rom service 'ith
................................................................................
)3A3
Inite& 6tates pro:ects, income +rom approve&
overseas pro:ects
................................................................................
)3AA
health
,ontinence Ai&s (a)ment 6cheme, pa)ments un&er
................................................................................
52#1"5
interest
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
:u&.ement &ebt, personal in:ur)
................................................................................
51#5"
unclaime& mone) an& propert)
................................................................................
51#120
li+e insurance companies 6ub&ivision !20#?
National 7isabilit) -nsurance 6cheme
N7-6 amounts
................................................................................
52#180
resale ro)alt) collectin. societies 51#45
shippin.
income +rom shippin. activities
................................................................................
51#100
social securit) or li4e pa)ments
A?6TI7@ scheme, pa)ment un&er
................................................................................
6ub&ivision 52#%
Australian Victim o+ Terrorism *verseas (a)ment
................................................................................
52#10
?etter 6tart +or ,hil&ren 'ith 7isabilit) initiative,
*uter 3e.ional an& 3emote pa)ment un&er
................................................................................
52#1"2
carer a&:ustment pa)ment
................................................................................
5!#10
carers, 2005 one#o++ pa)ment to, /carer pa)ment
relate&0, 2005 one#o++ pa)ment to carers /carer
service pension relate&0 or 2005 one#o++ pa)ment
to carers /carer allo'ance relate&0
................................................................................
52#10
relate&0, 2006 one#o++ pa)ment to carers /'i+e
pension relate&0, 2006 one#o++ pa)ment to carers
/partner service pension relate&0, 2006 one#o++
pa)ment to carers /carer service pension relate&0
or 2006 one#o++ pa)ment to carers /carer
allo'ance relate&0
................................................................................
52#10
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
carers, 200" one#o++ pa)ment to, /carer pa)ment
relate&0, 200" one#o++ pa)ment to carers /'i+e
pension relate&0, 200" one#o++ pa)ment to carers
/partner service pension relate&0, 200" one#o++
or 200" one#o++ pa)ment to carers /carer
allo'ance relate&0.
................................................................................
52#10
relate&0, 2008 one#o++ pa)ment to carers /'i+e
pension relate&0, 2008 one#o++ pa)ment to carers
/partner service pension relate&0, 2008 one#o++
or 2008 one#o++ pa)ment to carers /carer
allo'ance relate&0
................................................................................
52#10
carers, one#o++ pa)ment to, /carer allo'ance relate&0
or one#o++ pa)ment to carers /carer pa)ment
relate&0
................................................................................
52#10
carers, pa)ments to, un&er the scheme &etermine&
un&er 6che&ule ! to the 7ami"y Assistance
e-is"ation Amendment 'More :e"p %or 7ami"ies
0/ne1o%% (ayments) Act $004
................................................................................
52#10
carer supplement.
................................................................................
52#10
chil& &isabilit) assistance
................................................................................
6ub&ivision 52#A
clean ener.) a&vance un&er the 7arm :o#seho"d
.#pport Act 199$
................................................................................
5!#10
clean ener.) pa)ment un&er the .ocia" .ec#rity Act
1991
................................................................................
52#10
clean ener.) pa)ment un&er the <eterans=
9ntit"ements Act 1986
................................................................................
52#65
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
clean ener.) pa)ment un&er the scheme prepare&
un&er (art V-- o+ the <eterans= 9ntit"ements Act
1986
................................................................................
52#65
clean ener.) pa)ment un&er the Mi"itary
*eha&i"itation and Compensation Act $004
................................................................................
52#114
clean ener.) pa)ment un&er the scheme &etermine&
un&er section 258 o+ the Mi"itary *eha&i"itation
and Compensation Act $004
................................................................................
52#114
,ommon'ealth e&ucation or trainin. pa)ment
................................................................................
6ub&ivision 52#E
7E-6A bonus an& 7E-6A bonus bereavement
pa)ment
................................................................................
52#65
&isabilit) services pa)ment
................................................................................
5!#10
economic securit) strate.) pa)ment un&er the .ocia"
.ec#rity Act 1991
................................................................................
52#10
economic securit) strate.) pa)ment un&er the
<eterans= 9ntit"ements Act 1986
................................................................................
52#65
e&ucation entr) pa)ment supplement un&er the .ocia"
.ec#rity Act 1991
................................................................................
52#10
%T3 pa)ment un&er the <eterans= 9ntit"ements Act
1986
................................................................................
52#65
%T3 pa)ment, pa)ments un&er the scheme
&etermine& un&er (art 2 o+ 6che&ule 1 to the
7ami"y Assistance and /ther e-is"ation
Amendment '.choo",ids 8on#s 8#d-et Meas#res)
Act $01$
................................................................................
52#162
e1ceptional circumstances relie+, pa)ment +or
................................................................................
5!#10 an& 5!#15
+armers har&ship bonus un&er the .ocia" .ec#rity Act
1991
................................................................................
52#10
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
+arm help income support
................................................................................
5!#10 an& 5!#15
>elpin. ,hil&ren 'ith Autism pac4a.e, *uter
3e.ional an& 3emote pa)ment un&er
................................................................................
52#1"0
:o#seho"d .tim#"#s (ac,a-e Act ';o2 $) $009,
pa)ments un&er the scheme &etermine& un&er
6che&ule 4 to the
................................................................................
52#165
income support bonus un&er the .ocia" .ec#rity Act
1991
................................................................................
52#10
income support bonus un&er the scheme prepare&
un&er (art V-- o+ the <eterans= 9ntit"ements Act
1986
................................................................................
52#65
income support bonus un&er the scheme &etermine&
un&er section 258 o+ the Mi"itary *eha&i"itation
and Compensation Act $004
................................................................................
52#114
matche& savin.s scheme /income mana.ement0
pa)ment un&er the .ocia" .ec#rity Act 1991
................................................................................
52#10
ol&er Australians, 2006 one#o++ pa)ment to, un&er the
.ocia" .ec#rity Act 1991
................................................................................
52#10
ol&er Australians, 200" one#o++ pa)ment to, un&er the
................................................................................
52#10
ol&er Australians, 2008 one#o++ pa)ment to, un&er the
................................................................................
52#10
pension bonus an& pension bonus bereavement
pa)ment
................................................................................
52#10 an& 52#65
persecution victim, pa)ments to
................................................................................
"68#105
resistance +i.hter an& victim o+ 'artime persecution,
pa)ments to
................................................................................
"68#105
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
.ocia" .ec#rity and /ther e-is"ation Amendment
'9conomic .ec#rity .trate-y) Act $008, pa)ments
un&er the scheme &etermine& un&er 6che&ule 4 to
the
................................................................................
52#160
.ocia" .ec#rity and <eterans= A%%airs e-is"ation
Amendment '/ne1o%% (ayments and /ther $007
8#d-et Meas#res) Act $007, pa)ments un&er a
scheme &etermine& un&er item 1 o+ 6che&ule 2 to
the
................................................................................
52#10
.ocia" .ec#rity and <eterans= A%%airs e-is"ation
Amendment '/ne1o%% (ayments and /ther $007
8#d-et Meas#res) Act $007, pa)ments un&er the
scheme &etermine& un&er 6che&ule 4 to the
................................................................................
52#10
.ocia" .ec#rity and <eterans= 9ntit"ements
e-is"ation Amendment '/ne1o%% (ayments and
/ther 8#d-et Meas#res) Act $008, pa)ments
un&er a scheme &etermine& un&er item 1 o+
6che&ule 2 to the
................................................................................
52#10
e-is"ation Amendment '/ne1o%% (ayments and
/ther 8#d-et Meas#res) Act $008, pa)ments
the
................................................................................
52#10
e-is"ation Amendment '/ne1o%% (ayments to
Increase Assistance %or /"der A#stra"ians and
Carers and /ther Meas#res) Act $006, pa)ments
un&er the scheme &etermine& un&er item 1 o+
6che&ule 2 to the
................................................................................
52#10
e-is"ation Amendment '/ne1o%% (ayments to
Increase Assistance %or /"der A#stra"ians and
Carers and /ther Meas#res) Act $006, pa)ments
the
................................................................................
52#10
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
.ocia" .ec#rity e-is"ation Amendment '/ne1o%%
(ayments %or Carers) Act $005, pa)ments un&er
the scheme &etermine& un&er 6che&ule 2 to the
................................................................................
52#10
social securit) pa)ments
................................................................................
6ub&ivision 52#A
trainin. an& learnin. bonus un&er the .ocia" .ec#rity
Act 1991
................................................................................
52#10
transitional +arm +amil) pa)ment
................................................................................
5!#10
travellin. e1penses +or Australian participants in
?ritish nuclear tests
................................................................................
6ub&ivision 52#,?
veteran, Australian an& Inite& Nin.&om, pa)ment to
................................................................................
5!#20
veteran, pa)ment to
................................................................................
6ub&ivisions 52#?
an& 52#,
<eterans= 9ntit"ements Act 1986, lump sum pa)ment
un&er section 1$8N o+ the
................................................................................
52#65
voluntar) income mana.ement incentive pa)ment
un&er the .ocia" .ec#rity Act 1991
................................................................................
52#10
'oun&s an& &isabilit) pension
................................................................................
5!#10
see also +e"%are
structure& settlements an& structure& or&ers
annuities an& lump sums
................................................................................
6ub&ivisions 54#?,
54#, an& 54#7
stu&ent
see ed#cation and trainin-
superannuation an& relate& business
approve& &eposit +un&, continuousl) compl)in. +i1e&
interest, income +rom 25 Ma) 1$88 &eposits
................................................................................
2$5#!$0 o+ the
Income Tax
'Transitiona"
(ro!isions) Act 1997
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
approve& &eposit +un&, income +rom a .rant o+
+inancial assistance un&er (art 2! o+ the
.#perann#ation Ind#stry '.#per!ision) Act 1993
................................................................................
2$5#405 /table
item 10
approve& &eposit +un&, non#reversionar) bonuses on
policies o+ li+e assurance
................................................................................
2$5#!!5 /table
item 10
bene+its +rom non#compl)in. +un&s
................................................................................
!05#5
poole& superannuation trust, income +rom
constitutionall) protecte& +un&s
................................................................................
2$5#!!5 /table
item 20
poole& superannuation trust, income +rom current
pension liabilities o+ compl)in. superannuation
+un&s
................................................................................
2$5#400
poole& superannuation trust, non#reversionar)
bonuses on policies o+ li+e assurance
................................................................................
2$5#!!5 /table
item 10
superannuation +un&, income +rom other assets use&
to meet current pension liabilities
................................................................................
2$5#!$0
superannuation +un&, income +rom se.re.ate& current
pensions assets
................................................................................
2$5#!85
superannuation +un&, non#reversionar) bonuses on
policies o+ li+e assurance
................................................................................
2$5#!!5 /table
item 10
superannuation +un&, re.ulate&, income +rom a .rant
o+ +inancial assistance un&er (art 2! o+ the
.#perann#ation Ind#stry '.#per!ision) Act 1993
................................................................................
2$5#405 /table
item 10
Inite& Nations
Inite& Nations 6ervice, income +rom
................................................................................
)3A3
venture capital
eli.ible venture capital investments, .ain or pro+it
+rom realisation o+
................................................................................ 51#54
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
eli.ible venture capital investments b) %6V,2(s,
income &erive& +rom
................................................................................ 51#52
venture capital e=uit), .ain or pro+it +rom realisation
o+
................................................................................
51#55
'el+are
7isaster assistance +or Ne' Healan& non#protecte&
special cate.or) visa hol&ers
................................................................................
51#!0
7isaster -ncome 3ecover) 6ubsi&)
................................................................................
51#!0
maintenance pa)ment
................................................................................
51#!0 an& 51#50
thali&omi&e pa)mentMe1#.ratia pa)ment
................................................................................
51#!0
thali&omi&e pa)mentMpa)ment b) the Thali&omi&e
Australia Ei1e& Trust
................................................................................
51#!0
see also socia" sec#rity or "i,e payments
Note The +ollo'in. provisions o+ the Income Tax Assessment Act 1936 .ive
rise to notiona" e1empt income an& not e1empt income. Eor this
reason the provisions &o not appear in the lists o+ 4in&s o+ e1empt
income.
The provisions are para.raphs !84/10/b0 an& !85/10/b0,
subsection 402/20 an& sections 40! an& 404.
6ub&ivision 11#?M(articular 4in&s o+ non#assessable non#e1empt
income
Table o+ sections
11#50 %++ect o+ this 6ub&ivision
11#55 2ist o+ non#assessable non#e1empt income provisions
11#50 %++ect o+ this 6ub&ivision
<
5ui&e.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
11#55 2ist o+ non#assessable non#e1empt income provisions
The provisions set out in the list ma4e amounts non#assessable
non#e1empt income.
associate, non#&e&uctible pa)ment or obli.ation to
................................................................................
85#20/!0
entitlements to a share o+ net income that is personal
services income alrea&) assessable to an
in&ivi&ual
................................................................................
86#!5/20
pa)ments b) personal services entit) or associate o+
personal services income alrea&) assessable to an
in&ivi&ual
................................................................................
86#!5/10
personal services entit), amounts o+ personal services
income assessable to an in&ivi&ual
................................................................................
86#!0
bon&s
see sec#rities
capital .ains ta1
small business retirement e1emption, pa)ments ma&e
&irectl) or in&irectl) to ,5T concession
sta4ehol&er so compan) or trust complies 'ith
section 152#!25
................................................................................
152#!10
&emutualisation o+ +rien&l) societ) health or li+e insurers
amounts relate& to issue, or trans+er +rom lost polic)
hol&ers trust, o+ &emutualisation assets
................................................................................
!16#255
pa)ments receive& &irectl), or +rom lost polic)
hol&ers trust, in e1chan.e +or cancellation or
variation o+ interests un&er the &emutualisation
................................................................................
!16#255
&emutualisation o+ private health insurers
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
mar4et value o+ shares an& ri.hts at time o+ issue
................................................................................
!15#!10
pa)ments receive& in e1chan.e +or cancellation or
variation o+ interests un&er the &emutualisation
................................................................................
!15#!10
&isasters
2010#11 +loo&sMrecover) .rants +or primar)
pro&ucers
................................................................................
5$#55
2010#11 +loo&sMrecover) .rants +or small businesses
................................................................................
5$#55
,)clone @asiMrecover) .rants +or primar) pro&ucers
................................................................................
5$#60
,)clone @asiMrecover) .rants +or small businesses
................................................................................
5$#60
&ivi&en&s
&emer.er &ivi&en&s
................................................................................
66=6>
later &ivi&en& set o++ a.ainst amount ta4en to be
&ivi&en&
................................................................................
1,9?C=3>,
1,9?CA=6>
emplo)ment
earl) retirement scheme pa)ment, ta1 +ree amount o+
................................................................................
8!#1"0
emplo)ment termination pa)ment
................................................................................
82#10
82#65
82#"0
+orei.n termination pa)ment
................................................................................
8!#2!5
8!#240
.enuine re&un&anc) pa)ment, ta1 +ree amount o+
................................................................................
8!#1"0
unuse& lon. service leave pa)ment, pre#16K8K"8
perio&
................................................................................
8!#80
see s#perann#ation an& sections 82#10A an& 82#10,
o+ the Income Tax 'Transitiona" (ro!isions) Act
1997
environment
'ater in+rastructure improvement pa)ments
................................................................................
5$#65
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
.ains relate& to non#assessable non#e1empt income
................................................................................
2!0#!0
+irearms surren&er arran.ements
compensation un&er
................................................................................
5$#10
+irst home saver accounts
cre&its to an& pa)ments +rom
................................................................................
!45#50
ta1 pai& b) provi&ers
................................................................................
!45#!0
+orei.n aspects o+ income ta1ation
attribute& controlle& +orei.n compan) income,
amounts pai& out o+
................................................................................
)3AI
attribute& +orei.n investment +un& income, amounts
pai& out o+
................................................................................
)3A<
certain +ore1 realisation .ains
................................................................................
""5#25
&ivi&en& +rom a +orei.n countr), non#port+olio
................................................................................
)3A;
branch pro+its o+ Australian companies
................................................................................
)3A1
&istributions o+ con&uit +orei.n income
................................................................................
802#20
income &erive& b) temporar) resi&ents.
................................................................................
"68#$10
interest pai& b) temporar) resi&ents
................................................................................
"68#$80
mana.e& investment trust 'ithhol&in. ta1, amount
sub:ect to
................................................................................
840#815
6easonal 2abour Mobilit) (ro.ram 'ithhol&in. ta1,
amount sub:ect to
................................................................................
840#$15
superannuation +un&, +orei.n, interest an& &ivi&en&
income o+
................................................................................
1)83=3>=B!>
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
'ithhol&in. ta1, &ivi&en& ro)alt) or interest sub:ect
to
................................................................................
1)8+
56T
56T pa)able on a ta1able suppl)
................................................................................
1"#5/a0
increasin. a&:ustments
................................................................................
1"#5/b0 an& /c0
li+e insurance companies................................................................. 6ub&ivision !20#?
minin.
'ithhol&in. ta1, pa)ments to -n&i.enous persons an&
&istributin. bo&ies sub:ect to
................................................................................
5$#15
mutual receipts
amounts that 'oul& be mutual receipts but +or
prohibition on &istributions to members
................................................................................
5$#!5
National 3ental A++or&abilit) 6cheme
pa)ments ma&e, an& non#cash bene+its provi&e&, b) a
6tate or Territor) .overnmental bo&) in relation to
participation in the National 3ental A++or&abilit)
6cheme..................................................................
................................................................................
!80#!5
native title bene+its
native title bene+its
................................................................................
5$#50
non#cash bene+its
+rin.e bene+its
................................................................................
)3A=1>
notional sale an& loan
arran.ement pa)ments a notional seller receives or is
entitle& to receive
................................................................................
240#40
lu1ur) car leases, lease pa)ments that the lessor
receives or is entitle& to receive
................................................................................
242#40
&eeme& loan treatment +or +inancial bene+its provi&e&
+or ta1 pre+erre& use o+ asset
................................................................................
250#160
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
assessable *? income other than eli.ible +raction
................................................................................
1)150
relate& entities
amounts +rom, 'here &e&uction re&uce& +or
................................................................................
26#!5/40
repa)able amounts
previousl) assessable amounts
................................................................................
5$#!0
ri.hts to ac=uire shares or units
mar4et value o+ at time o+ issue
................................................................................
5$#40
securities
securities ac=uire& at a &iscount on or be+ore !0 8une
1$82, amount receive& on sale or re&emption o+
................................................................................
)3;
special bon&, amount receive& on re&emption o+
................................................................................
)35
small business assets
income arisin. +rom ,5T event, compan) or trust
o'ne& asset continuousl) +or 15 )ears
................................................................................
152#110/20
superannuation
bene+its .enerall)
................................................................................
7ivisions !01 to !06
commutation o+ income stream, un&er 25 )ears
................................................................................
!0!#5
&eath bene+its
................................................................................
!02#60
!02#65
!02#"0
!02#140
&epartin. Australia superannuation bene+its
................................................................................
!01#1"5
+orei.n superannuation +un&s, lump sum bene+its
................................................................................
!05#60
!05#65
!05#"0
Ni'i6aver schemes, contributions to compl)in.
superannuation +un&s +rom
................................................................................
!12#10
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
Ni'i6aver schemes, superannuation bene+its pai&
+rom compl)in. superannuation +un&s to
................................................................................
!12#15
member bene+its
................................................................................
!01#10
!01#15
!01#!0
!01#225
release authorities, pa)ments +rom
................................................................................
!0!#15
!0!#20
!04#15
roll#over superannuation bene+its
................................................................................
!06#5
superannuation lump sum +or recipient havin.
terminal me&ical con&ition
................................................................................
!0!#10
unclaime& mone) pa)ment
................................................................................
!06#20
ta1 bonus
pa)ments in accor&ance 'ith the Tax 8on#s %or
>or,in- A#stra"ians Act ';o2 $) $009
................................................................................
5$#45
ta1 loss trans+ers
consi&eration receive& b) loss compan) +rom income
compan), .enerall)
................................................................................
1"0#25/10
consi&eration receive& b) loss compan) +rom income
compan), net capital loss
................................................................................
1"0#125/10
temporar) resi&ents
see %orei-n aspects o% income taxation
tra&in. stoc4
&isposal outsi&e or&inar) course o+ business, amounts
receive& upon
................................................................................
"0#$0/20
trusts
attributable income, amounts representin.
................................................................................
993=)A>
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
+amil) trust &istribution ta1, amounts sub:ect to
................................................................................
)71*1,=3> in
/c"edule ):
'in&+all amounts
business +ranchise +ees, re+un& o+ 'hen invali&
................................................................................
5$#20
6tate ta1 on ,ommon'ealth place, re+un& o+ 'hen
invali&
22222222222222222222222222222222222222222222222222222222222222222222222222222222
5$#25
'ithhol&in. ta1es
see %orei-n aspects o% income taxation an& minin-
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
7ivision 12M(articular 4in&s o+ &e&uctions
12#1 %++ect o+ this 7ivision
This 7ivision is a
<
5ui&e.
12#5 2ist o+ provisions about &e&uctions
The provisions set out in the table contain rules about speci+ic
t)pes o+ &e&uction.
accrue& leave trans+er pa)ments
................................................................................
26#10
a&vance e1pen&iture
.enerall)
................................................................................
8)<?A to 8)<?7
avoi&ance arran.ements
................................................................................
8)<;
'hen &e&uctible
................................................................................
8)<?' to 8)<?N
ba& &ebts
&e&uction re&uce& because o+ +or.iveness o+ &ebt i+
&ebtor an& cre&itor are companies un&er common
o'nership an& a.ree on the re&uction
................................................................................
245#$0
.eneral
................................................................................
25#!5, 63:
companies
................................................................................
6ub&ivisions 165#,,
166#, an& 1"5#,
&ebtKe=uit) s'aps
................................................................................
635, 63:, "0$#220
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
&e&uction o+ a &ebt that use& to be o'e& to a member
o+ a consoli&ate& .roup or M%, .roup b) an
entit) that use& to be a member o+ the .roup
................................................................................
6ub&ivisions
"0$#7 an& "1$#-
mone) len&ers, liste& countr) branches, no &e&uction
+or
................................................................................
63+
see also "osses
see &#i"din-s, capita" a""o+ances, ind#stria" property,
*34 an& tax exempt entities
ban4s
+orei.n ban4s, Australian branches o+
................................................................................
16,??VA to
16,???;
boats
&e+erral o+ &e&uctions
................................................................................
26#4"
borro'in. e1penses
................................................................................
25#25
bribes to +orei.n public o++icials .................................................... 26#52
bribes to public o++icials ................................................................ 26#5!
buil&in.s
income pro&ucin. buil&in.s, capital allo'ances
................................................................................
7ivision 4!
see also herita-e conser!ation +or,
capital allo'ances
.enerall)
................................................................................
7ivision 40
balancin. a&:ustments
................................................................................
40#285/20, 40#!"0
business relate& costs
................................................................................
40#880
electricit) an& telephone lines
................................................................................
40#645
environmental protection activities
................................................................................
40#"55
e1ploration or prospectin.
................................................................................
40#80/10 an& /1A0,
40#"!0
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
.eothermal e1ploration in+ormation
................................................................................
6ub&ivision 40#?
.eothermal e1ploration ri.hts
................................................................................
6ub&ivision 40#?
in#house so+t'are
................................................................................
40#!!5, 40#455
intellectual propert)
................................................................................
6ub&ivisions 40#?
an& 40#-
-3Is
................................................................................
6ub&ivision 40#?
lan&care operations
................................................................................
40#6!0
lo'#value an& so+t'are &evelopment pools
................................................................................
6ub&ivision 40#%
Minerals 3esource 3ent Ta1
................................................................................
40#"51
minin. an& =uarr)in.
................................................................................
6ub&ivision 40#> an&
6ub&ivision 40#-
ne' business investment, a&&itional &e&uction
................................................................................
7ivision 41
(etroleum 3esource 3ent Ta1
................................................................................
40#"50
pro:ect pools
................................................................................
40#8!0, 40#8!2
re&ucin. &e&uctions
................................................................................
40#25, 40#2$0
spectrum licences
................................................................................
6ub&ivision 40#?
ta1 pre+erre& use o+ asset
................................................................................
7ivision 250
telecommunications site access ri.hts
................................................................................
6ub&ivision 40#?
trees in carbon sin4 +orests
................................................................................
6ub&ivision 40#8
'ater +acilities an& horticultural plants
................................................................................
6ub&ivision 40#E
capital .ains
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
no &e&uction +or an amount that 'oul& other'ise be
&e&uctible onl) because a net capital .ain is
inclu&e& in assessable income
................................................................................
1AAA
small business retirement e1emption, no &e&uction
+or pa)ments ma&e &irectl) or in&irectl) to ,5T
concession sta4ehol&er so compan) or trust
complies 'ith section 152#!25
................................................................................
152#!10
see also %orei-n residents
capital loss
net capital loss, no &e&uction +or
................................................................................
102#10
net capital loss, trans+er 'ithin compan) .roup
................................................................................
6ub&ivision 1"0#?
car &isposal
car e1penses
.enerall)
................................................................................
7ivision 28
Bcents per 4ilometreC metho&
................................................................................
6ub&ivision 28#,
Blo. boo4C metho&
................................................................................
6ub&ivisions 28#E
an& 28#5
Bone#thir& o+ actual e1pensesC metho&
................................................................................
6ub&ivision 28#%
substantiation o+ car e1penses
................................................................................
7ivision $00
B12O o+ ori.inal valueC metho&
................................................................................
6ub&ivision 28#7
see also transport expenses
car e1penses o+ emplo)ee
emplo)eeJs car e1penses 'here car provi&e& b)
emplo)er can be use& +or private purposes, no
&e&uction +or .
................................................................................
1A:
carrie& interests
carrie& interests, no &e&uction +or
................................................................................
118#21
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
car par4in.
emplo)eeJs car par4in. e1penses, no &e&uction +or
................................................................................
1A0A
chil&renJs income
.enerall)
........................................................................................................
1,)AA to 1,)A1
ta1able income o+ a chil&, &e&uctions ta4en into
consi&eration in calculatin.
................................................................................
1,)A+
clean ener.)
unit short+all char.e
................................................................................
26#18
club +ees
club +ees, no &e&uction +or
................................................................................
26#45
see also s#&scriptions to associations
,ommon'ealth places 'in&+all ta1
................................................................................
26#1"
companies, co#operative an& mutual
.enerall)
................................................................................
117 to 1)1
&istributions o+ assessable income
................................................................................
1),
companies, private
e1cessive pa)ments to sharehol&ers &irectors an&
associates, re&uce& &e&uction
................................................................................
1,9
conservation covenants
................................................................................
7ivision !1
consoli&ate& .roups an& M%, .roups
assets in relation to 7ivision 2!0 +inancial
arran.ement
................................................................................
"01#61/40
controlle& +orei.n companies
.enerall)
................................................................................
316 to 668
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
ba& &ebts
................................................................................
399A
&ecline in value o+ &epreciatin. assets
................................................................................
398
+inance share &ivi&en&s
................................................................................
396
ta1es pai&
................................................................................
393
convertible notes
see interest
cop)ri.hts
e1pen&iture in obtainin. re.istration
................................................................................
6ub&ivisions 40#?
an& 40#-
currenc) e1chan.e .ains an& losses
see %orei-n exchan-e
&eath o+ timber o'ner
see tim&er
&ebt interests
certain returns in respect o+ &ebt interests
................................................................................
25#85
&epreciation
&esi.ns
e1pen&iture in obtainin. or e1ten&in. re.istration
................................................................................
6ub&ivisions 40#?
an& 40#-
&isposal o+ &epreciatin. assets
&ivi&en&s
&ivi&en&s inclu&in. 2-, capital .ain component
................................................................................
115#280
+ran4in. cre&its, companies an& +orei.n resi&ents
................................................................................
20"#$5/20, 20"#$5/!0,
220#405/!0
+ran4in. cre&its, poole& &evelopment +un&s /(7Es0
................................................................................
1)6?'
non#share e=uit) interests, no &e&uction +or return in
respect o+
................................................................................
26#26
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
un+ran4e& non#port+olio &ivi&en&s
................................................................................
66:A
e&ucation e1penses
>i.her %&ucation ,ontribution 6cheme, no &e&uction
unless provi&e& as +rin.e bene+it
................................................................................
26#20
limit on &e&uction
................................................................................
8)A
election e1penses
Ee&eral an& 6tate (arliament election e1penses
................................................................................
25#60, 25#"0
local .overnment election e1penses, limite&
&e&uction
+or
................................................................................
25#65, 25#"0
electricit) connections
embeFFlement
see the%t
emplo)ees
pensions, .ratuities or retirin. allo'ances +or
e1#emplo)ees
................................................................................
25#50
6easonal 2abour Mobilit) (ro.ram, &ela)e&
&e&uction +or salar), 'a.es etc. pai& to emplo)ees
un&er pro.ram until 6easonal 2abour Mobilit)
(ro.ram 'ithhol&in. ta1 pa)able has been pai&
................................................................................
26#25A
see also shares
entertainment
e1pen&iture, no &e&uction +or some
................................................................................
7ivision !2
meal entertainment, calculation o+ &e&uctible amount
................................................................................
1A5A to 1A5C
environment
e1cess non#concessional contributions ta1
no &e&uction
................................................................................
26#"5
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
e1ploration an& prospectin.
+amil)
no &e&uction +or maintainin. spouse or chil&
................................................................................
26#40
+arm mana.ement &eposits
see primary prod#ction
+ilm license& investment companies /E2-,s0
see shares
losses +rom
................................................................................
2!0#15/20 an& /!0
see also &orro+in- expenses, in%rastr#ct#re, interest,
"eases an& sec#rities
+orei.n e1chan.e
losses
................................................................................
""5#!0
+orei.n +inancial entitiesJ Australian permanent
establishments
.enerall)
................................................................................
(art III3
thin capitalisation
................................................................................
6ub&ivision 820#E?
trans+er o+ losses
................................................................................
6ub&ivisions 1"0#A
an& 1"0#?
+orestr) mana.e& investment schemes
pa)ments un&er scheme
................................................................................
!$4#10/10
+ranchise +ees 'in&+all ta1
................................................................................
26#15
+rei.ht
+rei.ht +or shippe& .oo&s
................................................................................
13A
+rin.e bene+its
contributions +or private component, no &e&uction +or
................................................................................
1A;
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
emplo)eeJs car e1penses 'here car provi&e& b)
emplo)er can be use& +or private purposes, no
&e&uction +or
................................................................................
1A:
emplo)eeJs car par4in. e1penses, no &e&uction +or
................................................................................
1A0A
e1pense pa)ment +rin.e bene+its, re&uce& &e&uction
................................................................................
1A1
.eneral insurance companies an& companies that sel+ insure
claims pai&
................................................................................
!21#25 an& !21#$5
increase in value o+ outstan&in. claims liabilit)
................................................................................
!21#15 an& !21#85
increase in value o+ unearne& premium reserve
................................................................................
!21#55
.i+ts
.eneral
................................................................................
7ivision !0
limit on &e&uction
................................................................................
26#55
see also tax a!oidance schemes
horticultural plants
hi.her e&ucation assistance 26#20
ille.al activities 26#54
income e=ualisation &eposits
in&ustrial propert)
see inte""ect#a" property an& *34
in+rastructure
in+rastructure borro'in.s
................................................................................
190????+ to
190????1
see also tax "osses
insurance 'ith non#resi&ents
.enerall)
................................................................................
161 to 168
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
insurance premiums, no &e&uction unless
arran.ement to pa) ta1
................................................................................
16
reinsurance, no &e&uction +or resi&ent carr)in. on
insurance business in Australia +or reinsurance
premiums pai& to a non#resi&ent
................................................................................
168
intellectual propert)
interest
convertible notes, interest on, .enerall)
................................................................................
8)A to 8)T
+orei.n resi&ents, &ebt creation involvin., .enerall)
................................................................................
190?8 to
190??:
+orei.n resi&ents, &ela)e& &e&uction +or interest pai&
to until 'ithhol&in. ta1 pa)able has been pai&
................................................................................
26#25
li+e assurance premiums, interest etc. on loans to
+inance, no &e&uction +or
................................................................................
26#85
superannuation contributions, interest etc. on loans to
+inance, no &e&uction +or
................................................................................
26#80
un&erpa)ment or late pa)ment o+ ta1, interest +or
................................................................................
25#5
see also in%rastr#ct#re
international a.reements
see trans%er pricin-
international pro+it shi+tin.
see trans%er pricin-
investment compan)
see shares
-3Is
lan& &e.ra&ation
lease &ocument e1penses
................................................................................
25#20
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
lease, authorit), licence, permit or =uota
e1pen&iture to terminate
................................................................................
25#110
leases
+inance leases an& arran.ements, use o+ propert) i+
en&#user an e1empt public bo&) or use outsi&e
Australia to pro&uce e1empt income
................................................................................
1905 to 1907
leases o+ assets bein. put to ta1 pre+erre& use
................................................................................
7ivision 250
levera.e& arran.ements, propert) use&
P other than to pro&uce assessable income9 or
P b) a non#resi&ent outsi&e Australia9 or
P b) a previous o'ner
................................................................................
1A+
pa)ment +or +ailure to compl) 'ith lease obli.ation to
repair premises
................................................................................
25#15
leases o+ lu1ur) cars
accrual amounts
................................................................................
242#!5
................................................................................
242#"0
................................................................................
242#65
lease pa)ments not &e&uctible
................................................................................
242#55
pa)ments to ac=uire car not &e&uctible
................................................................................
242#85
leave pa)ments
accrue& leave trans+er pa)ments
................................................................................
26#10
no &e&uction +or leave pa)ments until pai&
................................................................................
26#10
leisure +acilities
no &e&uction +or
................................................................................
26#50
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
li+e insurance companies................................................................. 6ub&ivision !20#,
limite& recourse &ebt
later pa)ments
................................................................................
24!#45
later pa)ments /replacement &ebt0
................................................................................
24!#50
loans
see &orro+in- expenses, interest an& sec#rities
losses
+orei.n e1chan.e
................................................................................
""5#!0
pro+it#ma4in. un&erta4in. or scheme
................................................................................
25#40
propert) sale
................................................................................
25#40
tra&itional securities, loss on &isposal or re&emption
o+
................................................................................
7,3
see also tax "osses
mana.e& investment trusts
losses +rom carrie& interests
................................................................................
2"5#200/40
mana.ement an& investment compan) shares
see shares
membership o+ associations
see s#&scriptions to associations
minin.
misappropriation
b) emplo)ee or a.ent
................................................................................
25#4"
mort.a.e
e1penses o+ &ischar.in. a mort.a.e
................................................................................
25#!0
motor vehicles
see car expenses an& "eases
National 7isabilit) -nsurance 6cheme
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
National 7isabilit) -nsurance 6cheme e1pen&iture
................................................................................
26#100
non#cash transactions
non#cash business bene+its
................................................................................
1A<
non#cash consi&eration, mone) value &eeme& to have
been pai& or .iven
................................................................................
)1
non#commercial business activities
&e+erral o+ non#commercial losses
................................................................................
7ivision !5
non#resi&ent trust estates
.enerall)
................................................................................
1,)AAA to
1,)AA?0
mo&i+ie& application o+ &epreciation provisions .
................................................................................
1,)AA8
mo&i+ie& application o+ tra&in. stoc4 provisions
................................................................................
1,)AA?
no &e&uctions allo'able un&er 7ivision !6
................................................................................
1,)AA?C
notional sales an& loans
................................................................................
240#110/10
................................................................................
240#105/!0
arran.ement pa)ments, no &e&uction +or
................................................................................
240#55
notional interest
................................................................................
240#50, 250#155
&eeme& loan treatment +or +inancial bene+its provi&e&
+or ta1 pre+erre& use o+ asset
................................................................................
6ub&ivision 250#,
pa)ments to ac=uire propert), no &e&uction +or
................................................................................
240#85
.enerall)
................................................................................
1)1A to 1)15A
&e&uctions +or
................................................................................
1)150
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
partnerships
+orei.n h)bri& loss e1posure a&:ustment
................................................................................
.............................
8!0#50
losses, partnerJs share o+ partnership loss
................................................................................
9,, 9)
patents
e1pen&iture relatin. to .rant o+ patents, etc.
................................................................................
6ub&ivisions 40#?
an& 40#-
penalties
no &e&uction +or penalties
................................................................................
26#5
personal services income
................................................................................
6ub&ivision 86#?
.eneral
................................................................................
7ivision 85
political contributions an& .i+ts
&enial o+ certain &e&uctions
................................................................................
26#22
&e&uctions +or in&ivi&uals
................................................................................
6ub&ivision !0#7A
poole& &evelopment +un&s /(7Es0
................................................................................
1)6?' to 1)6??+
prepai& e1pen&iture
see ad!ance expendit#re
primar) pro&uction
+arm mana.ement &eposits
................................................................................
7ivision !$!
see also capita" a""o+ances an& tim&er
propert)
arran.ements relatin. to assets bein. put to ta1
pre+erre& use
................................................................................
7ivision 250
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
arran.ements relatin. to use o+ propert) i+ en&#user
an e1empt public bo&) or use outsi&e Australia to
pro&uce e1empt income
................................................................................
1905 to 1907
levera.e& arran.ements, propert) use&
P other than to pro&uce assessable income9 or
P b) a non#resi&ent outsi&e Australia9 or
P b) a previous o'ner
................................................................................
1A+
sale o+ propert), pro+it or loss
................................................................................
8)=)>
see also capita" a""o+ances an& "osses
public tra&in. trusts
.enerall)
................................................................................
1,)' to 1,)T
=uali+)in. securities
see sec#rities
3L7 7ivision !55
rates an& lan& ta1es
premises use& to pro&uce mutual receipts
................................................................................
25#"5
rebatable bene+its
no &e&uction +or
................................................................................
26#1$
re.ional hea&=uarters /3>Qs0
................................................................................
8)C to 8)C5
re.istere& emissions units
e1pen&iture incurre& in becomin. the hol&er o+
................................................................................
420#15
e1pen&iture incurre& in ceasin. to hol&
................................................................................
420#42
e1cess o+ openin. over closin. value o+..........
................................................................................
420#45
reimbursements
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
e1pense pa)ment +rin.e bene+its, re&uce& &e&uction
................................................................................
1A1
reinsurance
see ins#rance +ith non1residents
relate& entities /inclu&in. relatives0
re&uction o+ &e&uction +or pa)ment or liabilit) to
................................................................................
26#!5,
6=13> and =1C>
repairs
.eneral
................................................................................
25#10
repair covenants, pa)ment +or non#compliance 'ith
covenant to repair un&er lease
................................................................................
25#15
roa&s
see tim&er
ro)alties
ro)alt), no &e&uction +or ro)alt) pai& to a +orei.n
resi&ent until the 'ithhol&in. ta1 pa)able has
been pai&
................................................................................
26#25
scienti+ic research
see *34
securities
=uali+)in. securities
................................................................................
190( to 190?
substitute& securities
................................................................................
)3<
tra&itional securities, loss on &isposal or re&emption
o+
................................................................................
7,3
shares
bu)#bac4s
................................................................................
190???; to
190???T
cancellation o+ subsi&iar)Js shares in hol&in.
compan)
................................................................................
190???C to
190???I
emplo)ee share schemes, &e&uction +or provi&er o+
%66 interests
................................................................................
6ub&ivision 8!A#7
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
small#me&ium enterprise, loss on &isposal o+ shares
in
................................................................................
1)8T0 to 1)8TA
see also di!idends an& sec#rities
small#me&ium enterprises /6M%s0
see shares
6o+t'are
spectrum licences
6tate or Territor) bo&ies /6T?s0
bo&) ceasin. to be 6T?, some &e&uctions not
allo'e&
................................................................................
)6A4 to )6A8A
subscriptions to associations
................................................................................
25#55
substantiation
'or4, travel an& car e1penses
................................................................................
7ivision $00
superannuation
see ins#rance an& ann#ity &#siness an& interest
superannuation an& relate& business
.enerall)
................................................................................
(art !#!0
asset &isposals
................................................................................
2$5#85
&eath or &isabilit) bene+its, &e&uction +or +uture
service element
................................................................................
2$5#4"0
&eath or &isabilit) cover, premiums +or
................................................................................
2$5#465
&etriment pa)ments
................................................................................
2$5#485
+inancial assistance lev)
................................................................................
2$5#4$0/10 /table
item !0
superannuation contributions surchar.e
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
no &e&uction
................................................................................
26#60
superannuationM&e&uctibilit) o+ contributions
.enerall) ..........
................................................................................
7ivision 2$0
contributions +or emplo)ees etc.
................................................................................
6ub&ivision 2$0#?
contributions to non#compl)in. +un&s
................................................................................
sections 2$0#10 an&
2$0#"5
limit on &e&uction
................................................................................
26#55
no &e&uction un&er an) other provision o+ the Act
................................................................................
section 2$0#10
personal contributions
................................................................................
6ub&ivision 2$0#,
superannuation .uarantee char.e
no &e&uction +or
................................................................................
26#$5
late contribution o++set, no &e&uction +or
................................................................................
2$0#$5
superannuation super$isor. le$.
late lo&.ment amount, no &e&uction +or
................................................................................
26#$0
ta1 a.entJs +ees
see tax re"ated expenses
ta1 avoi&ance schemes
companies, use o+ ta1 losses or &e&uctions to avoi&
ta1
................................................................................
7ivision 1"5
&iverte& assessable income
................................................................................
1)1: to 1)1A
&ivi&en& strippin.
................................................................................
1775
.i+ts
................................................................................
78A
imputation, manipulation o+
................................................................................
20"#150/20,
20"#150/!0
prepai& out.oin.s to avoi& ta1
................................................................................
8)<;
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
recoupe& e1pen&iture
................................................................................
8)<1 to 8)<A
ta1 avoi&ance scheme, no &e&uction allo'able 'here
&e&uction the result o+
................................................................................
177A to 1770
tra&in. stoc4
................................................................................
"0#20, )A
ta1 e1empt entities
treatment o+ losses an& out.oin.s on becomin.
ta1able
................................................................................
/c"edule )+
ta1 losses
ba& &ebts, companies
................................................................................
165#120
chan.e o+ o'nership or control o+ a compan)
.enerall)
................................................................................
7ivision 165
+or earlier income )ears
................................................................................
6ub&ivision 165#A
+or income )ear o+ the chan.e
................................................................................
6ub&ivision 165#?
&esi.nate& in+rastructure pro:ect entities
................................................................................
7ivision 415
earlier income )ears
................................................................................
7ivision !6
li+e insurance companies
................................................................................
6ub&ivision !20#7
poole& &evelopment +un&s
................................................................................
6ub&ivision 1$5#A
trans+er bet'een companies in same 'holl)#o'ne&
.roup
................................................................................
6ub&ivision 1"0#A
ta1 pre+erre& asset +inancin.
.enerall)
................................................................................
7ivision 250
&enial o+ capital allo'ance &e&uctions in relation to
asset bein. put to ta1 pre+erre& use
................................................................................
250#145
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
re&uction in capital allo'ance &e&uctions in relation
to asset bein. put to ta1 pre+erre& use
................................................................................
250#150
ta1 relate& e1penses
................................................................................
25#5
telecommunications site access ri.hts
telephone lines
termination pa)ments surchar.e
no &e&uction
................................................................................
26#65
the+t
b) emplo)ee or a.ent
................................................................................
25#45
thin capitalisation
&isallo'in. o+ &e&uctions
................................................................................
7ivision 820
timber
&eath o+ o'ner o+ lan& carr)in. trees, &e&uction o+
the part o+ lan& cost attributable to trees
................................................................................
"0#120
&isposal o+ lan& carr)in. trees, &e&uction o+ the part
o+ lan& cost attributable to trees
................................................................................
"0#120
+ellin. trees, &e&uction o+ cost o+ lan& attributable to
trees +elle& or o+ cost o+ ri.ht to +ell trees
................................................................................
"0#120
tra&in. ships
see capita" a""o+ancesn
tra&in. stoc4
,ommissioner ma) &etermine 'hether consi&eration
pai& +or chose in action is reasonable
................................................................................
)A
e1cess o+ openin. stoc4 over closin. value
................................................................................
"0#!5/!0
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
e1pen&iture &eeme& not to be o+ a capital nature
................................................................................
"0#25
prepa)ments, 'hen stoc4 becomes tra&in. stoc4 on
han&
................................................................................
"0#15
see also tax a!oidance schemes an& tim&er
tra&itional securities
see sec#rities
trainin. .uarantee
trainin. .uarantee char.e, no &e&uction +or
................................................................................
51/"0
trans+er pricin.
armJs len.th principle +or cross#bor&er con&itions
bet'een entities
................................................................................
6ub&ivision 815#?
armJs len.th principle +or permanent establishments
................................................................................
6ub&ivision 815#,
transport e1penses
incurre& in travel bet'een 'or4places
................................................................................
25#100
travel e1penses
accompan)in. relatives, no &e&uction +or some travel
e1penses
................................................................................
26#!0
see also s#&stantiation
trees in carbon sin4 +orests
trusts
trust income, &e&uctions consi&ere& in calculatin.
................................................................................
9 to 1,)
unit trusts
................................................................................
1,)+ to 1,)A
see also %orei-n residents, non1resident tr#st estates
an& p#&"ic tradin- tr#sts
uni+orms
non#compulsor) uni+orms
................................................................................
7ivision !4
Inite& Me&ical (rotection 2imite& support pa)ments
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
................................................................................
25#105
uranium minin.
see minin-
'ater +acilities
improvements
................................................................................
26#100
'or4 e1penses
see s#&stantiation
'or4 in pro.ress
pa)ment o+ a 'or4 in pro.ress amount
................................................................................
25#$5
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
7ivision 1!MTa1 o++sets
1!#1A %++ect o+ this 7ivision
This 7ivision is a
<
5ui&e.
1!#1 2ist o+ ta1 o++sets
The provisions set out in the list allo' )ou a ta1 o++set.
Abori.inal stu&) assistance
see socia" sec#rity an& other &ene%it payments
annual leave
see "ea!e payments
annuit)
see s#perann#ation
approve& &eposit +un&s /A7Es0
see di!idends
avera.in.
bonuses
see "i%e ass#rance
chil&
chil& care
................................................................................
6ub&ivision 61#-A
+irst chil&
................................................................................
6ub&ivision 61#-
increase& ta1 pa)able un&er (art --- 7ivision 6AA,
unreasonable
................................................................................
1,)A1
trust income
................................................................................
1,,=)>
chil&Khouse4eeper
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
see dependants
corporate unit trusts
see di!idends
,)clone 2arr) or ,)clone Monica income support pa)ment
see socia" sec#rity and other &ene%it payments
&e+ence +orce
members servin. overseas
................................................................................
793
&epen&ants
chil& o+ person 4eepin. house +or the person
................................................................................
19;
house4eeper, carin. +or chil&, invali& relative or
&isable& spouse
................................................................................
19A
invali& relative, invali& spouse or carer in receipt o+
carer bene+it
................................................................................
19;,
6ub&ivision 61#A
parentsKparents in la'
................................................................................
19;
spouse
................................................................................
19;
see also medica" expenses
&ivi&en&s
.eneral
................................................................................
20"#20/20, 20"#45,
20"#110/20/c0,
210#1"0/10
emplo)ment termination
emplo)ment termination pa)ments
................................................................................
82#10
82#"0
see "ea!e payments, s#perann#ation an&
sections 82#10A an& 82#10, o+ the Income Tax
'Transitiona" (ro!isions) Act 1997
%=uine Aor4ers >ar&ship Aa.e 6upplement (a)ment
e1ceptional circumstances relie+
+arm help income support
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
+ilm
................................................................................
7ivision !"6
+orei.n income ta1
+orei.n income ta1 pai&, ta1 o++set +or
........................................................................................................
7ivision ""0
+ran4in. &e+icit ta1
liabilities to pa)
................................................................................
205#"0
+ran4e& &ivi&en&s
see di!idends
har&ship
see chi"d
house4eeper
see dependants
housin.
National 3ental A++or&abilit).
................................................................................
7ivision !80
imputation
see di!idends an& %ran,in- de%icit tax
inter#corporate &ivi&en&s
see di!idends
interest
ta1 pai& on b) compan)
................................................................................
1)7
interim income support pa)ment
invali& relative
see dependants
leave pa)ments
unuse& annual leave pa)ment ..........
................................................................................
8!#15
unuse& lon. service leave pa)ment
................................................................................
8!#85
see emp"oyment termination
le.al &isabilit)
see tr#sts
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
li+e assurance
bonus, receipt o+
................................................................................
16,AA3
li+e insurance compan)
subsi&iar) :oinin. consoli&ate& .roup
................................................................................
"1!#545/50
lon. service leave
see "ea!e payments
losses
loss carr) bac4
................................................................................
7ivision 160
lo' income earner
a.e& or pensioner bene+iciar), trustee liable to be
assesse& +or bene+iciar)Js share o+ net income o+
trust estate
................................................................................
16,AAA3
a.e& person or pensioner
................................................................................
16,AAAA
.eneral
................................................................................
19N
lump sum income arrears
receipt o+
................................................................................
19?CA, 19?C3,
6ub&ivision 61#2
mature a.e 'or4ers
................................................................................
6ub&ivision 61#N
me&ical e1penses
pa)ment o+
................................................................................
19(
non#resi&ent bene+iciar)
see tr#sts
non#resi&ent trust estate
see tr#sts
overseas &e+ence +orce service
see de%ence %orce
parentKparent#in#la'
see dependants
partnerships
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
see di!idends, ho#sin- an& sma"" &#siness entities
pension
poole& superannuation trusts /(6Ts0
see di!idends
primar) pro&uction
avera.in. o+ income, trustees
................................................................................
16
avera.in. o+ ta1 liabilit), in&ivi&uals
................................................................................
!$2#!5/20
e1ceptional circumstances relie+ pa)ments see socia"
sec#rity and other &ene%it payments
+arm help income support pa)ments see socia"
sec#rity and other &ene%it payments
+arm househol& support see socia" sec#rity and other
&ene%it payments
interim income support pa)ments see socia" sec#rity
and other &ene%it payments
private health insurance
...................................................................................... 6ub&ivision 61R5
public tra&in. trust
see di!idends
public unit trust
see di!idends
3L7 7ivision !55
resi&ents o+ isolate& areas
see ?one
sic4ness bene+its
social securit) an& other bene+it pa)ments
Abori.inal stu&) assistance scheme
................................................................................
16,AAA=3>
chil&ren, assistance +or isolate&
................................................................................
16,AAA=3>
,)clone 2arr) or ,)clone Monica income support
pa)ment
................................................................................
16,AAA=3>
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
%=uine Aor4ers >ar&ship Aa.e 6upplement (a)ment
................................................................................
16,AAA=3>
e1ceptional circumstances relie+ un&er the 7arm
:o#seho"d .#pport Act 199$
................................................................................
16,AAA=3>
+arm help income support un&er the 7arm :o#seho"d
.#pport Act 199$
................................................................................
16,AAA=3>
interim income support pa)ment
................................................................................
16,AAA=3>
pension, social securit) pension an& veteranJs pension
................................................................................
16,AAAA
te1tile, clothin. an& +oot'ear allo'ance
................................................................................
16,AAA=3>
unemplo)ment, sic4ness an& other bene+it pa)ments
un&er the .ocia" .ec#rity Act 1991
................................................................................
16,AAA=3>
spouse
see dependants
superannuation
.enerall)
................................................................................
7ivisions !01 an&
!02
spouse contributions
................................................................................
6ub&ivision 2$0#7
&eath bene+its
................................................................................
!02#"5
!02#85
!02#145
e1cess concessional contributions
................................................................................
2$1#15/b0
member bene+its
................................................................................
!01#20
!01#25
!01#!5
!01#40
!01#$5
!01#100
!01#105
!01#115
TEN =uote& to superannuation or 36A provi&er a+ter
no#TEN contributions ta1 pai&
................................................................................
2$5#6"5
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
termination pa)ments
see emp"oyment termination, "ea!e payments an&
s#perann#ation
trustee
see di!idends, "o+ income earner an& tr#sts
trusts
bene+iciar) in a +orei.n trust
................................................................................
983
non#resi&ent bene+iciar)
................................................................................
98A=)>=a>
trust income o+ bene+iciar) 'ith le.al &isabilit)
................................................................................
1,,=)>
see also di!idends, ho#sin- an& sma"" &#siness
entities
Inite& Nations +orces
salar), 'a.es an& allo'ances +rom service as a
member o+
................................................................................
)3A3=7>
unemplo)ment bene+its
unit trusts
see di!idends
'in&in.#up o+ non#resi&ent trust estates
see tr#sts
'ithhol&in. pa)ments
ma&e b) companies to Australian sea+arers
................................................................................
6ub&ivision 61#N
Fone
resi&ents o+ isolate& areas
................................................................................
79A
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
,hapter 2M2iabilit) rules o+ .eneral application
(art 2#1MAssessable income
7ivision 15M6ome items o+ assessable income
5ui&e to 7ivision 15
15#1 Ahat this 7ivision is about
This 7ivision sets out some items that are inclu&e& in )our
assessable income. 3emember that the .eneral rules about
assessable income in 7ivision 6 appl) to these items.
Table o+ sections
15#2 Allo'ances an& other thin.s provi&e& in respect o+ emplo)ment or services
15#! 3eturn to 'or4 pa)ments
15#5 Accrue& leave trans+er pa)ments
15#10 ?ounties an& subsi&ies
15#15 (ro+it#ma4in. un&erta4in. or plan
15#20 3o)alties
15#22 (a)ments ma&e to members o+ a cop)ri.ht collectin. societ)
15#2! (a)ments o+ resale ro)alties b) resale ro)alt) collectin. societ)
15#25 Amount receive& +or lease obli.ation to repair
15#!0 -nsurance or in&emnit) +or loss o+ assessable income
15#!5 -nterest on overpa)ments an& earl) pa)ments o+ ta1
15#40 (rovi&in. minin., =uarr)in. or prospectin. in+ormation or .eothermal
e1ploration in+ormation
15#45 Amounts pai& un&er +orestr) a.reements
15#46 Amounts pai& un&er +orestr) mana.e& investment schemes
15#50 Aor4 in pro.ress amounts
15#55 ,ertain amounts pai& un&er +uneral polic)
15#60 ,ertain amounts pai& un&er scholarship plan
15#65 6u.ar in&ustr) e1it .rants
15#"0 3eimburse& car e1penses
15#"5 ?onuses
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
15#80 %mplo)er E>6A contributions etc.
15#85 3e+un&e& e1cess rehabilitation ta1 o++set
15#2 Allo'ances an& other thin.s provi&e& in respect o+ emplo)ment or
services
/10 @our assessable income inclu&es the value to )ou o+ all allo'ances,
.ratuities, compensation, bene+its, bonuses an& premiums
<
provi&e& to )ou in respect o+, or +or or in relation &irectl) or
in&irectl) to, an) emplo)ment o+ or services ren&ere& b) )ou
/inclu&in. an) service as a member o+ the 7e+ence Eorce0.
/20 This is so 'hether the thin.s 'ere
<
provi&e& in mone) or in an)
other +orm.
/!0 >o'ever, the value o+ the +ollo'in. are not inclu&e& in )our
assessable income un&er this section
/a0 a
<
superannuation lump sum or an
<
emplo)ment termination
pa)ment9
/b0 an
<
unuse& annual leave pa)ment or an
<
unuse& lon. service
leave pa)ment9
/c0 a
<
&ivi&en& or
<
non#share &ivi&en&9
/&0 an amount that is assessable as
<
or&inar) income un&er
section 6#59
/e0
<
%66 interests to 'hich 6ub&ivision 8!A#? or 8!A#, /about
emplo)ee share schemes0 applies.
Note 6ection 2!2 o+ the Income Tax Assessment Act 1936 provi&es that
+rin.e bene+its are non#assessable non#e1empt income.
15#! 3eturn to 'or4 pa)ments
@our assessable income inclu&es an amount )ou receive un&er an
<
arran.ement that an entit) enters into +or a purpose o+ in&ucin.
)ou to resume 'or4in. +or, or provi&in. services to, an) entit).
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
15#5 Accrue& leave trans+er pa)ments
@our assessable income inclu&es an
<
accrue& leave trans+er
pa)ment that )ou receive.
To +in& out i+ the pa)ment is &e&uctible to the pa)er, see section 26#10.
15#10 ?ounties an& subsi&ies
@our assessable income inclu&es a bount) or subsi&) that
/a0 )ou receive in relation to carr)in. on a
<
business9 an&
/b0 is not assessable as
<
or&inar) income un&er section 6#5.
15#15 (ro+it#ma4in. un&erta4in. or plan
/10 @our assessable income inclu&es pro+it arisin. +rom the carr)in. on
or carr)in. out o+ a pro+it#ma4in. un&erta4in. or plan.
/20 This section &oes not appl) to a pro+it that
/a0 is assessable as
<
or&inar) income un&er section 6#59 or
/b0 arises in respect o+ the sale o+ propert) ac=uire& on or a+ter
20 6eptember 1$85.
Note -+ )ou sell propert) )ou ac=uire& &e%ore 20 6eptember 1$85 +or
pro+it#ma4in. b) sale, )our assessable income inclu&es the pro+it see
section 25A o+ the Income Tax Assessment Act 1936.
15#20 3o)alties
/10 @our assessable income inclu&es an amount that )ou receive as or
b) 'a) o+ ro)alt) 'ithin the or&inar) meanin. o+ Bro)alt)C
/&isre.ar&in. the &e+inition o+ royalty in subsection $$5#1/100 i+ the
amount is not assessable as
<
or&inar) income un&er section 6#5.
/20 6ubsection /10 &oes not appl) to an amount o+ a pa)ment to 'hich
section 15#22 or 15#2! applies.
15#22 (a)ments ma&e to members o+ a cop)ri.ht collectin. societ)
/10 This section, instea& o+ 7ivision 6 o+ (art --- o+ the Income Tax
Assessment Act 1936, applies to a pa)ment that a
<
cop)ri.ht
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
collectin. societ), to 'hich section 51#4! applies, ma4es to )ou as
a
<
member o+ the societ).
/20 @our assessable income inclu&es the amount o+ the pa)ment,
e1cept to the e1tent that the pa)ment represents an amount on
'hich the &irectors o+ the societ) are or have been assesse&, an&
are liable to pa)
<
ta1, un&er section $8, $$ or $$A o+ the Income
Tax Assessment Act 1936.
Note 6ection 410#5 o+ this Act re=uires a cop)ri.ht collectin. societ) to
.ive )ou a notice at the time o+ pa)ment.
15#2! (a)ments o+ resale ro)alties b) resale ro)alt) collectin. societ)
/10 This section, instea& o+ 7ivision 6 o+ (art --- o+ the Income Tax
Assessment Act 1936, applies to a pa)ment that the
<
resale ro)alt)
collectin. societ) ma4es to )ou un&er section 26 o+ the *esa"e
*oya"ty *i-ht %or <is#a" Artists Act $009.
/20 @our assessable income inclu&es the amount o+ the pa)ment,
e1cept to the e1tent that the pa)ment represents an amount on
'hich the &irectors o+ the societ) are or have been assesse&, an&
are liable to pa)
<
ta1, un&er section $8, $$ or $$A o+ the Income
Tax Assessment Act 1936.
Note 6ection 410#50 o+ this Act re=uires the resale ro)alt) collectin.
societ) to .ive )ou a notice at the time o+ pa)ment.
15#25 Amount receive& +or lease obli.ation to repair
@our assessable income inclu&es an amount )ou receive +rom an
entit) i+
/a0 )ou receive it as a lessor or +ormer lessor o+ premises9 an&
/b0 the entit) pa)s )ou the amount +or +ailin. to compl) 'ith a
lease obli.ation to ma4e repairs to the premises9 an&
/c0 the entit) uses or has use& the premises +or the
<
purpose o+
pro&ucin. assessable income9 an&
/&0 the amount is not assessable as
<
or&inar) income un&er
section 6#5.
Note The entit) can &e&uct the amount see section 25#15.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
15#!0 -nsurance or in&emnit) +or loss o+ assessable income
@our assessable income inclu&es an amount )ou receive b) 'a) o+
insurance or in&emnit) +or the loss o+ an amount /the lost amount0
i+
/a0 the lost amount 'oul& have been inclu&e& in )our assessable
income9 an&
/b0 the amount )ou receive is not assessable as
<
or&inar) income
un&er section 6#5.
15#!5 -nterest on overpa)ments an& earl) pa)ments o+ ta1
@our assessable income inclu&es interest pa)able to )ou un&er the
Taxation 'Interest on /!erpayments and 9ar"y (ayments) Act
1983. The interest becomes assessable 'hen it is pai& to )ou or
applie& to &ischar.e a liabilit) )ou have to the ,ommon'ealth.
15#40 (rovi&in. minin., =uarr)in. or prospectin. in+ormation or
.eothermal e1ploration in+ormation
@our assessable income inclu&es an amount )ou receive +or
provi&in.
<
minin., =uarr)in. or prospectin. in+ormation or
<
.eothermal e1ploration in+ormation to another entit) i+
/a0 )ou continue to
<
hol& the in+ormation9 an&
/b0 the amount )ou receive is not assessable as
<
or&inar) income
un&er section 6#5.
15#45 Amounts pai& un&er +orestr) a.reements
/10 @our assessable income inclu&es an amount )ou receive un&er an
a.reement +or the plantin. an& ten&in. o+ trees +or +ellin. i+
/a0 )ou are the mana.er o+ the a.reement as mentione& in
section 82NHM5 o+ the Income Tax Assessment Act 19369
an&
/b0 the amount satis+ies, +or the entit) that pai& it, the
re=uirements o+ that section.
The amount is inclu&e& +or the income )ear in 'hich the entit) can
claim a &e&uction +or the amount.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
/20 No part o+ an amount inclu&e& un&er subsection /10 is inclu&e& in
)our assessable income +or a later income )ear.
15#46 Amounts pai& un&er +orestr) mana.e& investment schemes
/10 @our assessable income inclu&es an amount )ou receive un&er a
<
+orestr) mana.e& investment scheme i+
/a0 )ou are the
<
+orestr) mana.er o+ the scheme, or an
<
associate
o+ the +orestr) mana.er9 an&
/b0 the entit) that pai& the amount can &e&uct or has &e&ucte&
the amount un&er section !$4#10 in relation to the scheme
/&isre.ar&in. subsection !$4#10/500.
The amount is inclu&e& +or the income )ear +or 'hich the entit)
that pai& the amount can or has claime& a &e&uction +or it
/&isre.ar&in. subsection !$4#10/500.
/20 No part o+ an amount inclu&e& un&er subsection /10 is inclu&e& in
)our assessable income +or a later income )ear.
15#50 Aor4 in pro.ress amounts
@our assessable income inclu&es a
<
'or4 in pro.ress amount that
)ou receive.
Note To +in& out 'hether the amount is &e&uctible to the pa)er, see
section 25#$5.
15#55 ,ertain amounts pai& un&er +uneral polic)
/10 @our assessable income inclu&es the amount o+ a bene+it provi&e&
to )ou b) a
<
li+e insurance compan) un&er a
<
+uneral polic) issue&
a+ter !1 7ecember 2002 to pa) +or the +uneral o+ the insure&
person, re&uce& b)
/a0 the amount o+ the premium or premiums o+ the polic) that is
reasonabl) relate& to the bene+it9 an&
/b0 the amount o+ the +ees an& char.es inclu&e& in the compan)Js
assessable income +or an) income )ear un&er
para.raph !20#15/10/40 that is reasonabl) relate& to the
bene+it.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
/20 This section &oes not appl) i+ the bene+it is inclu&e& in )our
assessable income as
/a0
<
or&inar) income un&er section 6#59 or
/b0
<
statutor) income un&er a section o+ this Act other than this
section.
15#60 ,ertain amounts pai& un&er scholarship plan
/10 @our assessable income inclu&es the amount o+ a bene+it provi&e&
to )ou, or on )our behal+, b) a
<
li+e insurance compan) un&er a
<
scholarship plan covere& b) subsection /20 or /!0, re&uce& b) the
amount 'or4e& out un&er subsection /40, i+
/a0 the bene+it is provi&e& on or a+ter 1 8anuar) 200!9 an&
/b0 )ou are nominate& in the plan as a bene+iciar) 'hose
e&ucation is to be helpe& b) the bene+it.
/20 This subsection covers a
<
scholarship plan issue& b) the
<
li+e
insurance compan) a+ter !1 7ecember 2002.
/!0 This subsection covers a
<
scholarship plan i+
/a0 the plan 'as issue& b) the
<
li+e insurance compan) be+ore
1 8anuar) 200!9 an&
/b0 no amount receive& b) the compan) on or a+ter 1 8anuar)
200! an& attributable to the plan is
<
non#assessable
non#e1empt income o+ the compan) un&er
para.raph !20#!"/10/&0.
/40 The amount o+ the re&uction is the sum o+
/a0 the amount o+ the premium or premiums o+ the plan that is
reasonabl) relate& to the bene+it9 an&
/b0 the amount o+ the +ees an& char.es inclu&e& in the compan)Js
assessable income +or an) income )ear un&er
para.raph !20#15/10/40 that is reasonabl) relate& to the
bene+it.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
15#65 6u.ar in&ustr) e1it .rants
/10 @our assessable income inclu&es the amount o+ a su.ar in&ustr)
e1it .rant that )ou receive un&er the pro.ram 4no'n as the 6u.ar
-n&ustr) 3e+orm (ro.ram i+, as a con&ition o+ receivin. the .rant,
)ou entere& into an un&erta4in. not to become the o'ner or
operator o+ a su.ar in&ustr)
<
enterprise 'ithin 5 )ears a+ter
receivin. the .rant.
/20 @our assessable income also inclu&es the amount o+ a su.ar
in&ustr) e1it .rant that )ou receive un&er that pro.ram i+
/a0 as a con&ition o+ receivin. the .rant, )ou entere& into an
un&erta4in. not to become the o'ner or operator o+ an)
a.ricultural
<
enterprise 'ithin 5 )ears a+ter receivin. the
.rant9 an&
/b0 )ou become the o'ner or operator o+ an a.ricultural
enterprise /e1cept a su.ar in&ustr) enterprise0 'ithin that
perio&.
/!0 The amount is inclu&e& +or the income )ear in 'hich )ou receive
it.
Note @ou 'ill be re=uire& to repa) the .rant i+ )ou re#enter the su.ar
in&ustr) 'ithin the 5 )ear perio&. -+ )ou repa) the .rant in an income
)ear a+ter the )ear in 'hich )ou receive it, section 5$#!0 'ill e1clu&e
the .rant +rom )our assessable income.
15#"0 3eimburse& car e1penses
@our assessable income inclu&es a reimbursement mentione& in
section 22 o+ the 7rin-e 8ene%its Tax Assessment Act 1986 /about
e1empt car e1pense pa)ment bene+its0 that, but +or that section,
'oul& be a
<
+rin.e bene+it
<
provi&e& to )ou.
15#"5 ?onuses
@our assessable income inclu&es an) amount )ou receive as or b)
'a) o+ bonus on a
<
li+e insurance polic), other than a reversionar)
bonus.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
Note 3eversionar) bonuses are covere& b) section 6#5 o+ this Act i+ the) are
or&inar) income an&, i+ not, b) section 26A> o+ the Income Tax
15#80 %mplo)er E>6A contributions etc.
@our assessable income inclu&es a contribution or e1pense
pa)ment bene+it o+ a 4in& mentione& in para.raph /h&0 o+ the
&e+inition o+ fringe benefit in subsection 1!6/10 o+ the 7rin-e
8ene%its Tax Assessment Act 1986 that, but +or that para.raph,
'oul& be a
<
+rin.e bene+it
<
provi&e& to )ou.
15#85 3e+un&e& e1cess rehabilitation ta1 o++set
@our assessable income inclu&es an amount the ,ommissioner
pa)s )ou un&er para.raph 225#25/20/b0 o+ the Minera"s *eso#rce
*ent Tax Act $01$.
Note @ou can .et a re+un& o+ e1cess rehabilitation ta1 o++sets un&er
section 225#25 o+ the Minera"s *eso#rce *ent Tax Act $01$.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
7ivision 1"M%++ect o+ 56T etc. on assessable income
5ui&e to 7ivision 1"
1"#1 Ahat this 7ivision is about
This 7ivision sets out the e++ect o+ the 56T in 'or4in. out
assessable income. 5enerall) spea4in., 56T, input ta1 cre&its
an& a&:ustments un&er the 56T Act are &isre.ar&e&.
Table o+ sections
1"#5 56T an& increasin. a&:ustments
1"#10 ,ertain &ecreasin. a&:ustments
1"#15 %lements in calculation o+ amounts
1"#20 56T .roups an& 56T :oint ventures
1"#!0 6pecial cre&its because o+ in&irect ta1 transition
1"#!5 ,ertain sections not to appl) to certain assets or e1pen&iture
1"#5 56T an& increasin. a&:ustments
An amount is not assessable income, an& is not
<
e1empt income, to
the e1tent that it inclu&es an amount relatin. to
/a0
<
56T pa)able on a
<
ta1able suppl)9 or
/b0 an
<
increasin. a&:ustment that relates to a
<
suppl)9 or
/c0 an
<
increasin. a&:ustment that
/i0 relates to an
<
ac=uisition9 an&
/ii0 arises in circumstances that also .ive rise to a
<
recoupment that is inclu&e& in assessable income.
1"#10 ,ertain &ecreasin. a&:ustments
/10 An amount o+ a
<
&ecreasin. a&:ustment that arises un&er
7ivision 12$ or 1!2 o+ the
<
56T Act is assessable income, unless
the entit) that has the a&:ustment is an
<
e1empt entit).
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
/20 >o'ever, the amount is not assessable income to the e1tent that,
because it becomes a component o+ a
<
net input ta1 cre&it, a
re&uction is ma&e un&er section 10!#!0 /re&uction o+ cost base etc.
b) net input ta1 cre&its0.
-n calculatin. an amount that ma) be inclu&e& in assessable
income
/a0 an element in the calculation that is an amount receive& or
receivable is treate& as not inclu&in. an amount e=ual to an)
<
56T pa)able on a
<
ta1able suppl) relate& to the amount
receive& or receivable, or an)
<
increasin. a&:ustment relate&
to that amount9 an&
/b0 an element in the calculation that is an amount pai& or
pa)able is treate& as not inclu&in. an amount e=ual to an)
<
input ta1 cre&it +or an
<
ac=uisition relate& to the amount pai&
or pa)able, or an)
<
&ecreasin. a&:ustment relate& to that
amount.
/10 A
<
member o+ a
<
56T .roup is to be treate&, +or the purposes o+
this 7ivision, as i+ 6ub&ivision 48#? o+ the
<
56T Act /other than
para.raph 48#40/20/a0 an& subsection 48#40/!00 &i& not appl) to
that member.
/20 A
<
participant in a
<
56T :oint venture is to be treate&, +or the
purposes o+ this 7ivision, as i+ 6ub&ivision 51#? o+ the
<
56T Act
/other than subsections 51#!0/20 an& /!00 &i& not appl) to that
participant.
1"#!0 6pecial cre&its because o+ in&irect ta1 transition
A special cre&it un&er section 1$A o+ the A ;e+ Tax .ystem
'@oods and .er!ices Tax Transition) Act 1999 is assessable income
at the time it is attribute& to a
<
ta1 perio& /+or a cre&it un&er
section 1$A0.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
6ections 1"#5, 1"#10 an& 1"#15 &o not appl) to assets, or to
e1pen&iture, +or 'hich )ou can &e&uct amounts un&er 7ivision 40
or 7ivision !28.
Note 6ee instea& 6ub&ivision 2"#?.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
7ivision 20MAmounts inclu&e& to reverse the e++ect o+ past
&e&uctions
20#A -nsurance, in&emnit) or other recoupment +or &e&uctible
e1penses
20#? 7isposal o+ a car +or 'hich lease pa)ments have been
&e&ucte&
This 7ivision inclu&es amounts in )our assessable income to
reverse the e++ect o+ certain 4in&s o+ &e&uctions.
Table o+ sections
20#5 *ther provisions that reverse the e++ect o+ &e&uctions
20#5 *ther provisions that reverse the e++ect o+ &e&uctions
The table lists other provisions that reverse the e++ect o+ certain
4in&s o+ &e&uctions.
(ro$isions t"at adBust .our tax position in respect o& deductions
Ite
m
In t"is situation: /ee:
1 A balancin. a&:ustment +or a &epreciatin.
asset is inclu&e& in )our assessable
income.
40#285/10 an&
40#445/20
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
2 An amount )ou receive b) 'a) o+
insurance or in&emnit) +or a loss o+
tra&in. stoc4 is inclu&e& in )our
assessable income.
"0#115
2A 2imite& recourse &ebt that 'as use& to
+inance e1pen&iture &e&uctible un&er a
capital allo'ance /or on propert) +or
'hich )ou have &e&ucte& or can &e&uct
amounts un&er a capital allo'ance0
terminates an amount is inclu&e& in )our
assessable income
24!#40
! ?ecause o+
P petroleum resource rent ta19 or
P an instalment o+ petroleum resource
rent ta19
that )ou have &e&ucte& or can &e&uct, an
amount is re+un&e&, cre&ite&, pai& or
applie& the amount is inclu&e& in )our
assessable income.
40#"50/!0
4 @ou receive a +rin.e bene+it b) 'a) o+
reimbursement or pa)ment o+ a loss or
out.oin. )ou incurre& )our &e&uction +or
the loss or out.oin. is re&uce&.
1A1
" @ou receive an amount as recoupment +or
)our local .overnin. bo&) election
e1penses an amount is inclu&e& in )our
assessable income.
76A=6>
8 @ou receive superannuation bene+its as a
result o+ someoneJs &e&uctible
contributions the bene+its are inclu&e& in
)our assessable income.
2$0#100
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
$ An 3L7 entit) receives or becomes
entitle& to receive an amount
P +or, or relatin. to, the results o+ 3L7
activities9 or
P attributable to it incurrin. e1pen&iture
on 3L7 activities or to its use o+ a
&epreciatin. asset +or the purpose o+
con&uctin. 3L7 activities9
an& the entit) is entitle& un&er
7ivision !55 to a ta1 o++set relatin. to
those 3L7 activities.
The amount is inclu&e& in its assessable
income.
!55#410
10 @ou receive a recoupment +rom
.overnment relatin. to 3L7 activities +or
'hich entitlements to ta1 o++sets un&er
7ivision !55 arise.
%1tra income ta1 is pa)able on the
recoupment.
6ub&ivision !55#5
6ub&ivision 20#AM-nsurance, in&emnit) or other recoupment +or
&e&uctible e1penses
5ui&e to 6ub&ivision 20#A
20#10 Ahat this 6ub&ivision is about
3ecoupment o+ e1penses )ou incurre& an& can &e&uct
@our assessable income ma) inclu&e an amount that )ou receive
b) 'a) o+ insurance, in&emnit) or other recoupment i+
it is +or a &e&uctible e1pense9 an&
it is not other'ise assessable income.
*eco#pment o% expenses yo# did not inc#r &#t can ded#ct
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
1$0 Income Tax Assessment Act 1997
6ection !0#5
@our assessable income ma) inclu&e an amount that another
entit) receives b) 'a) o+ insurance, in&emnit) or other
recoupment i+
it is +or an e1pense that )ou can &e&uct9 an&
it is not other'ise )our assessable income.
Table o+ sections
20#15 >o' to use this 6ub&ivision
Ahat is an assessa&"e reco#pmentG
20#20 Assessable recoupments
20#25 Ahat is reco#pmentG
20#!0 Tables o+ &e&uctions +or 'hich recoupments are assessable
>o' much is inclu&e& in )our assessable incomeG
20#!5 -+ the e1pense is &e&uctible in a sin.le income )ear
20#40 -+ the e1pense is &e&uctible over 2 or more income )ears
20#45 %++ect o+ balancin. char.e
20#50 -+ the e1pense is onl) partiall) &e&uctible
20#55 Meanin. o+ pre!io#s reco#pment "a+
Ahat i+ )ou can &e&uct a loss or out.oin. incurre& b) another entit)G
20#60 -+ )ou are the onl) entit) that can &e&uct an amount +or the loss or out.oin.
20#65 -+ 2 or more entities can &e&uct amounts +or the loss or out.oin.
20#15 >o' to use this 6ub&ivision
-+ )ou incurre& the &e&uctible loss or out.oin.
/10 Eirst, rea& sections 20#20 to 20#!0 to 'or4 out 'hether )ou have
receive& an assessable recoupment. -+ not, )ou &o not nee& to rea&
the rest o+ the 6ub&ivision.
/20 -+ )ou ha!e receive& one or more assessable recoupments,
sections 20#!5 to 20#55 tell )ou ho' much is inclu&e& in )our
assessable income +or an income )ear.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
Income Tax Assessment Act 1997 1$1
6ection !0#10
-+ another entit) incurre& a loss or out.oin. )ou can &e&uct
/!0 6ections 20#60 an& 20#65 tell )ou ho' to appl) this 6ub&ivision.
Ahat is an assessa&"e reco#pmentG
20#20 Assessable recoupments
%1clusion
/10 An amount is not an assessable recoupment to the e1tent that it is
<
or&inar) income, or it is
<
statutor) income because o+ a provision
outsi&e this 6ub&ivision.
-nsurance or in&emnit)
/20 An amount )ou have receive& as
<
recoupment o+ a loss or out.oin.
is an assessable recoupment i+
/a0 )ou receive& the amount b) 'a) o+ insurance or in&emnit)9
an&
/b0 )ou can &e&uct an amount +or the loss or out.oin. +or the
<
current )ear, or )ou have &e&ucte& or can &e&uct an amount
+or it +or an earlier income )ear, un&er an) provision o+ this
Act.
*ther recoupment
/!0 An amount )ou have receive& as
<
recoupment o+ a loss or out.oin.
/except b) 'a) o+ insurance or in&emnit)0 is an assessable
recoupment i+
/a0 )ou can &e&uct an amount +or the loss or out.oin. +or the
<
current )ear9 or
/b0 )ou have &e&ucte& or can &e&uct an amount +or the loss or
out.oin. +or an earlier income )ear9
un&er a provision liste& in section 20#!0.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
1$$ Income Tax Assessment Act 1997
6ection !0#5
20#25 Ahat is reco#pmentG
5eneral
/10 Recoupment o+ a loss or out.oin. inclu&es
/a0 an) 4in& o+ recoupment, reimbursement, re+un&, insurance,
in&emnit) or recover), ho'ever &escribe&9 an&
/b0 a .rant in respect o+ the loss or out.oin..
Amount pai& +or )ou
/20 -+ some other entit) pa)s an amount +or )ou in respect o+ a loss or
out.oin. that )ou incur, )ou are ta4en to receive the amount as
recoupment o+ the loss or out.oin..
3emission o+ .eneral interest char.e or short+all interest char.e
/2A0 -+
/a0 )ou have incurre& e1pen&iture that consists o+
<
.eneral
interest char.e or
<
short+all interest char.e9 an&
/b0 the ,ommissioner remits an) o+ that char.e9
then )ou are ta4en to receive the remitte& amount as recoupment
o+ that e1pen&iture.
Amount +or &isposin. o+ ri.ht to recoupment
/!0 -+ )ou &ispose o+ )our ri.ht to receive an amount as
<
recoupment
o+ a loss or out.oin. )ou are ta4en to receive as recoupment o+ the
loss or out.oin. an) amount )ou receive +or &isposin. o+ that ri.ht.
/The &isposal nee& not be to another entit).0
Amount receive& that is recoupment to an unspeci+ie& e1tent
/40 -+ )ou receive an amount that is, to an unspeci+ie& e1tent,
<
recoupment o+ a loss or out.oin., the amount is ta4en to be
recoupment o+ the loss or out.oin. to 'hatever e1tent is
reasonable.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
?alancin. a&:ustments not covere&
/50 -+ a balancin. a&:ustment is re=uire& +or propert) on 'hich )ou
incurre& a loss or out.oin., no part o+ the
<
termination value o+ the
propert) is an amount )ou receive as recoupment o+ the loss or
out.oin..
Note The termination value is usuall) the amount )ou receive because o+
&isposal, loss or &estruction o+ the propert).
20#!0 Tables o+ &e&uctions +or 'hich recoupments are assessable
/10 This table sho's the &e&uctions un&er the Income Tax Assessment
Act 1997 +or 'hich recoupments are assessable.
Note 3e+erences are to section numbers e1cept 'here other'ise in&icate&.
(ro$isions o& t"e Income Tax Assessment Act 1997
Item (ro$ision +escription o& expense
1.1 8#1 /so +ar as it allo's )ou to
&e&uct a ba& &ebt, or part o+ a
&ebt that is ba&0
ba& &ebts
1.2 8#1 /so +ar as it allo's )ou to
&e&uct rates or ta1es0
rates or ta1es
1.! 25#5 ta1#relate& e1penses
1.4 25#!5 ba& &ebts
1.5 25#45 embeFFlement or larcen) b) an emplo)ee
1.5A 25#4" misappropriation b) an emplo)ee or a.ent
1.6 25#60 election e1penses, ,ommon'ealth an& 6tate
elections
1.6A 25#65 election e1penses, local .overnin. bo&)
1." 25#"5 rates an& lan& ta1es on premises use& to
pro&uce mutual receipts
1.8 The +ormer 25#80 up.ra&in. assets to meet 56T obli.ations etc.
1.8A 25#$5 'or4 in pro.ress amount
1.8? item " o+ the table in
section !0#15
contributions relatin. to +un&#raisin. events
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
1.8, item 8 o+ the table in
section !0#15
contributions relatin. to +un&#raisin. auctions
1.$ 7ivision 40 capital allo'ances
1.10 The +ormer 7ivision 42 /as it
applie& to
<
so+t'are because
o+ the +ormer
6ub&ivision 46#?0
e1pen&iture on so+t'are
1.11 The +ormer 6ub&ivision 46#, e1pen&iture on so+t'are
1.12 The +ormer 6ub&ivision 46#7 e1pen&iture on so+t'are, poole&
1.1! The +ormer 7ivision 42 /as it
applie& to
<
-3Is because o+
7ivision 440
e1pen&iture on -3Is
1.14 The +ormer !!0#15 e1ploration or prospectin. e1pen&iture
1.15 The +ormer !!0#80 allo'able capital e1pen&iture relatin. to
minin. or =uarr)in.
1.16 The +ormer !!0#!50 petroleum resource rent ta1
1.1" The +ormer !!0#!"0 transport capital e1pen&iture relatin. to
minin. or =uarr)in.
1.18 The +ormer !!0#4!5 rehabilitation e1pen&iture relatin. to minin.
or =uarr)in.
1.1$ The +ormer !!0#485 balancin. a&:ustment &e&uction +or
e1pen&iture relatin. to minin. or =uarr)in.
1.1$
A
7ivision !55 3L7
1.20 The +ormer
6ub&ivisions !80#A an&
!80#,
capital e1pen&iture incurre& in obtainin. a
spectrum licence
1.21 The +ormer
6ub&ivision !8"#A
lan&care operations e1pen&iture
1.22 The +ormer
6ub&ivision !8"#?
e1pen&iture on +acilities to conserve or
conve) 'ater
1.2! The +ormer
6ub&ivision !8"#7
.rapevine establishment e1pen&iture
1.24 The +ormer
6ub&ivision !8"#,
horticultural plant establishment e1pen&iture
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
1.25 The +ormer
6ub&ivision !8"#%
mains electricit) connection e1pen&iture
1.26 The +ormer
6ub&ivision 400#A
e1pen&iture on environmental impact
assessment
1.2" The +ormer
6ub&ivision 400#?
e1pen&iture on environmental protection
activities
1.2"
A
420#15 re.istere& emissions unit
1.28 ""5#!0 +ore1 realisation loss
/20 This table sho's the &e&uctions un&er the Income Tax Assessment
Act 1936 +or 'hich recoupments are assessable.
Note 3e+erences are to section numbers e1cept 'here other'ise in&icate&.
(ro$isions o& t"e Income Tax Assessment Act 1936
Ite
m
(ro$ision +escription o& expense
2.1 Eormer 1=1> /so +ar as
it allo'e& )ou to
&e&uct a ba& &ebt, or
part o+ a &ebt that is
ba&0
ba& &ebts
2.2 Eormer 1=1> /so +ar as
it allo'e& )ou to
&e&uct rates or ta1es0
rates or ta1es
2.! 63 ba& &ebts
2.4 Eormer 69 ta1#relate& e1penses
2.5 Eormer 7,A=3> mains electricit) connection
e1pen&iture
2.6 Eormer 71 embeFFlement or larcen) b) an
emplo)ee
2." Eormer 7) rates an& lan& ta1
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
2."
A
Eormer 7)A a pa)ment o+ petroleum resource
rent ta1, or an instalment o+
petroleum resource rent ta1, or a
cre&it un&er para.raph $$/&0 o+ the
(etro"e#m *eso#rce *ent Tax
Assessment Act 1987 in respect o+ a
pa)ment o+ such an instalment
2.8 Eormer 733, 733A or
7331
research an& &evelopment activit)
e1pen&iture
2.$ Eormer 76 election e1penses, ,ommon'ealth
an& 6tate elections
2.$
A
Eormer 76A election e1penses, local .overnin.
bo&)
2.10 Eormer 7AA=1> or =6> .rape vine establishment e1pen&iture
2.11 Eormer 73=)> or =3A> 'ater conservation or conve)ance
e1pen&iture
2.12 Eormer 7+=)> lan& &e.ra&ation prevention
e1pen&iture
2.1! Eormer 8)A3 &evelopment allo'ance e1pen&iture
2.14 Eormer 8)33 environmental impact stu&)
e1pen&iture
2.15 Eormer 8)3< environmental protection
e1pen&iture
2.1" Eormer +i$ision 1, o&
(art III
minin. an& =uarr)in. e1pen&iture
2.18 Eormer
+i$ision 1,AAA o&
(art III
e1pen&iture on transport o+ minerals
an& =uarr) materials
2.1$ Eormer +i$ision 1,AA
o& (art III
e1pen&iture on prospectin. an&
minin. +or petroleum
2.20 Eormer 1)63A e1pen&iture on rehabilitatin. minin.,
=uarr)in. an& petroleum sites
2.21 Eormer 1)6??: horticultural plant establishment
e1pen&iture /e++ective li+e o+ the
plant less than ! )ears0
2.22 Eormer 1)6??0 horticultural plant establishment
e1pen&iture /e++ective li+e o+ the
plant more than ! )ears0
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
2.2! Eormer 6)8 &rou.ht miti.ation propert)
e1pen&iture b) a primar) pro&ucer
2.24 Eormer 636 &rou.ht miti.ation propert)
e1pen&iture b) a leasin. compan)
>o' much is inclu&e& in )our assessable incomeG
20#!5 -+ the e1pense is &e&uctible in a sin.le income )ear
/10 @our assessable income inclu&es an
<
assessable recoupment o+ a
loss or out.oin. i+
/a0 )ou can &e&uct the 'hole o+ the loss or out.oin. +or the
<
current )ear9 or
/b0 )ou have &e&ucte& or can &e&uct the 'hole o+ the loss or
out.oin. +or an earlier income )ear.
Note 1 The operation o+ this section ma) be a++ecte& i+ a balancin. char.e has
been inclu&e& in )our assessable income because o+ a &e&uction +or
the loss or out.oin. see section 20#45.
Note 2 3ecoupment o+ a loss or out.oin. +or 'hich )ou can &e&uct amounts
over more than one income )ear is covere& b) section 20#40.
Note ! 3ecoupment o+ a loss or out.oin. that is onl) partiall) &e&uctible is
covere& b) section 20#50.
Total assesse& not to e1cee& the loss or out.oin.
/20 The total o+ all amounts that subsection /10 inclu&es in )our
assessable income +or one or more income )ears in respect o+ a
loss or out.oin. cannot e1cee& the amount o+ the loss or out.oin..
3ecoupment receive& be+ore income )ear o+ the &e&uction
/!0 -+
/a0 )ou can &e&uct the 'hole o+ a loss or out.oin. +or the
<
current )ear9 an&
/b0 be+ore the current )ear )ou receive& an
<
assessable
recoupment

o+ the loss or out.oin.9
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
)our assessable income +or the current )ear inclu&es so much o+
the recoupment as subsection /10 'oul& have inclu&e& i+ )ou ha&
instea& receive& the recoupment at the start o+ the current )ear.
20#40 -+ the e1pense is &e&uctible over 2 or more income )ears
/10 This section inclu&es an amount in )our assessable income i+
/a0 )ou receive in the
<
current )ear an
<
assessable recoupment o+
a loss or out.oin. +or 'hich )ou can &e&uct amounts over 2
or more income )ears9 or
/b0 )ou receive& in an ear"ier income )ear an
<
assessable
recoupment o+ a loss or out.oin. o+ that 4in& /unless all o+
the recoupment has alrea&) been inclu&e& in )our assessable
income +or one or more earlier income )ears b) this section
or a
<
previous recoupment la'0.
/This section applies even i+ the recoupment 'as receive& be+ore
the +irst o+ those income )ears.0
Note 3ecoupment o+ a loss or out.oin. that is onl) partiall) &e&uctible is
covere& b) section 20#50.
/20 Aor4 out as +ollo's ho' much is inclu&e& in )our assessable
income +or the
<
current )ear because o+ one or more
<
assessable
recoupments o+ the loss or out.oin..
Note The metho& statement ensures that assessable recoupments are
inclu&e&
D onl) so +ar as the) have not alrea&) been inclu&e& +or an
earlier income )ear9 an&
D onl) to the e1tent o+ )our total &e&uctions to &ate +or the loss
or out.oin..
Metho& statement
6tep 1. A&& up all the
<
assessable recoupments o+ the loss or
out.oin. that )ou have receive& /in the
<
current )ear
or earlier0. The result is the total assessable
recoupment.
6tep 2. A&& up the amounts /i+ an)0 inclu&e& in )our
assessable income +or earlier income )ears, in respect
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
o+ the loss or out.oin., b) this section or a
<
previous
recoupment la'. The result is the recoupment already
assessed. /-+ no amount 'as inclu&e&, the recoupment
already assessed is nil.0
6tep !. 6ubtract the recoupment alrea&) assesse& +rom the
total assessable recoupment. The result is the
unassessed recoupment.
6tep 4. A&& up each amount that )ou can &e&uct +or the loss or
out.oin. +or the
<
current )ear, or )ou have &e&ucte& or
can &e&uct +or the loss or out.oin. +or an earlier
income )ear. The result is the total deductions for the
loss or outgoing.
Note The total &e&uctions ma) be re&uce& i+ an amount has
been inclu&e& in )our assessable income because o+ a
balancin. a&:ustment see section 20#45.
6tep 5. 6ubtract the recoupment alrea&) assesse& +rom the
total &e&uctions +or the loss or out.oin.. The result is
the outstanding deductions.
6tep 6. The unassesse& recoupment is inclu&e& in )our
assessable income, unless it is .reater than the
outstan&in. &e&uctions. -n that case, the amount o+ the
outstan&in. &e&uctions is inclu&e& instea&.
%1ample At the start o+ the 2002#0! income )ear, a compan) incurs S100,000 to
start to hol& a &epreciatin. asset. The compan) uses the prime cost
metho&, an& the e++ective li+e is 10 )ears. S10,000 is &e&uctible +or the
2002#0! income )ear an& +or each o+ the +ollo'in. $ income )ears
un&er section 40#25.
-n the 2002#0! income )ear, the compan) receives S20,000 as
recoupment. >o' much is assessable +or the 2002#0! income )earG
Appl)in. the metho& statement
A+ter step 1 the total assessable recoupment is S20,000.
A+ter step 2 the recoupment alrea&) assesse& is nil.
A+ter step ! the unassesse& recoupment is
total assessable recoupment minus recoupment alrea&) assesse&,
i.e. S20,000 minus 0 T S20,000.
A+ter step 4 the total &e&uctions +or the loss or out.oin. are S10,000.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
A+ter step 5 the outstan&in. &e&uctions are
total &e&uctions +or the loss or out.oin. minus recoupment alrea&)
assesse&, i.e. S10,000 minus 0 T S10,000.
A+ter step 6 the unassesse& recoupment /step !0 is .reater than
outstan&in. &e&uctions /step 50, so the amount o+ the outstan&in.
&e&uctions is inclu&e& in assessable income, i.e. S10,000.
Appl)in. the metho& statement to the 200!#04 income )ear a +urther
S10,000 is inclu&e& in the compan)Js assessable income.
20#45 %++ect o+ balancin. char.e
/10 This section ma) a++ect the operation o+ section 20#!5 or 20#40 /as
appropriate0 i+
/a0 a balancin. a&:ustment is re=uire& +or the
<
current )ear /or
+or an earlier income )ear0 because )ou have &e&ucte& or can
&e&uct an amount +or an income )ear +or the loss or
out.oin.9 an&
/b0 an amount /the balancing charge0 is inclu&e& in )our
assessable income +or the
<
current )ear /or +or the earlier
income )ear0 because o+ the balancin. a&:ustment.
To +in& out about balancin. a&:ustments, see 6ub&ivision 40#7.
%++ect on section 20#!5
/20 -n appl)in. section 20#!5, treat each o+ the +ollo'in. as re&uce&
b) the balancin. char.e
/a0 the amount o+ the loss or out.oin.9
/b0 the total o+ 'hat )ou can &e&uct +or the loss or out.oin. +or
the
<
current )ear, or have &e&ucte& or can &e&uct +or an
earlier income )ear.
%++ect on section 20#40
/!0 -n appl)in. the metho& statement in subsection 20#40/20, re&uce
the total deductions for the loss or outgoing b) the balancin.
char.e.
%1ample ,ontinuin. the e1ample in subsection 20#40/20 at the start o+ the
2005#06 income )ear, the compan)
D receives a +urther S10,000 as recoupment9 an&
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
D sells the &epreciatin. asset +or S"5,000.
As a result o+ the sale, a balancin. a&:ustment o+ S5,000 is inclu&e&
un&er section 40#285 in the compan)Js assessable income +or that
income )ear.
>o' much o+ the recoupment amount receive& in the 2005#06 income
)ear is assessable +or that income )earG
Appl)in. the metho& statement in subsection 20#40/20
A+ter step 1 the total assessable recoupment is S!0,000 /receive&
&urin. 2002#0! an& 2005#060.
A+ter step 2 the recoupment alrea&) assesse& is S20,000 /+or 2002#0!
an& 200!#040.
A+ter step ! the unassesse& recoupment is
total assessable recoupment minus recoupment alrea&) assesse&,
i.e. S!0,000 minus S20,000 T S10,000.
A+ter step 4 the total &e&uctions +or the loss or out.oin. are S!0,000
/S10,000 +or each o+ 2002#0!, 2004#04 an& 2004#050, re&uce& b)
S5,000 /the amount inclu&e& in assessable income +or the balancin.
a&:ustment0, i.e. S25,000.
A+ter step 5 the outstan&in. &e&uctions are
total &e&uctions +or the loss or out.oin. minus recoupment alrea&)
assesse&, i.e. S25,000 minus S20,000 T S5,000.
A+ter step 6 the unassesse& recoupment /step !0 is .reater than
outstan&in. &e&uctions /step 50, so the amount o+ the outstan&in.
&e&uctions is inclu&e& in assessable income, i.e. S5,000.
20#50 -+ the e1pense is onl) partiall) &e&uctible
/10 This section e1ten&s the operation o+ section 20#!5 or 20#40 /as
appropriate0 to a case 'here the total o+ 'hat )ou can &e&uct un&er
a provision /the deduction provision0 +or a loss or out.oin. is
limite& to a proportion o+ the loss or out.oin..
/20 -+ )ou receive an
<
assessable recoupment o+ the loss or out.oin.,
section 20#!5 or 20#40 applies as i+
/a0 )ou ha& incurre& on"y that proportion o+ the loss or out.oin.,
but coul& &e&uct the +ho"e o+ that proportion un&er the
&e&uction provision9 an&
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
/b0 )ou ha& receive& onl) that proportion o+ the recoupment.
%1ample @ou incur e1pen&iture o+ S500. A provision liste& in section 20#!0
entitles )ou to &e&uct 10O o+ the e1pen&iture /S500 over 5 )ears. This
means )ou can &e&uct S10 in each o+ the 5 )ears.
@ou recoup S!00 o+ the e1pen&iture. This section treats )ou as
receivin. onl) 10O o+ the recoupment. There+ore, S!0 is &ealt 'ith b)
section 20#40.
20#55 Meanin. o+ pre!io#s reco#pment "a+
/10 revious recoupment la! means a provision o+ the Income Tax
Assessment Act 1936 liste& in this table.
(re$ious recoupment la2
Ite
m
(ro$ision
4"at 9ind o& expense t"e
pro$ision relates to:
1 +ormer )6=B> /so +ar as it relates
to an amount receive& +or or in
respect o+ a loss or out.oin.
that is a &e&uction0
a loss or out.oin. that is a
&e&uction
2 +ormer )6=9> embeFFlement or larcen) b)
an emplo)ee
! +ormer 63=3> ba& &ebts
4 +ormer 69=8> ta1#relate& e1penses
5 +ormer 7,A=> mains electricit) connection
e1pen&iture
6 +ormer 7)=)> /so +ar as it relates
to a re+un& o+ an amount )ou
have &e&ucte& or can &e&uct0
rates or ta1es
6A +ormer 7)A=6>=a> and =aa> petroleum resource rent ta1
" +ormer 76=)> election e1penses,
,ommon'ealth an& 6tate
elections
/20 Eormer section !!0#!50 o+ this Act is also a previous recoupment
la!.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
Ahat i+ )ou can &e&uct a loss or out.oin. incurre& b) another
entit)G
20#60 -+ )ou are the onl) entit) that can &e&uct an amount +or the loss or
out.oin.
This 6ub&ivision applies in a &i++erent 'a) i+
/a0 an entit) /other than )ou0 incurs a loss or out.oin.9 an&
/b0 )ou can &e&uct the 'hole o+ the loss or out.oin. +or an
income )ear, or )ou can &e&uct amounts +or the loss or
out.oin. over 2 or more income )ears9 an&
/c0 no other entit) can &e&uct an amount +or the loss or out.oin.9
an&
/&0 the entit) that incurre& the loss or out.oin. receives one or
more amounts as
<
recoupment o+ the loss or out.oin..
This 6ub&ivision /e1cept this section an& section 20#650 applies as
i+ )ou ha& incurre& the loss or out.oin. an& ha& also receive& the
<
recoupment.
20#65 -+ 2 or more entities can &e&uct amounts +or the loss or out.oin.
/10 6pecial rules appl) i+
/a0 an entit) /the first entity0 incurs a loss or out.oin.9 an&
/b0 2 or more entities /the deducting entities, 'hich ma) inclu&e
the +irst entit)0 have &e&ucte& or can &e&uct amounts +or the
loss or out.oin. /'hether +or the same income )ear or +or
&i++erent income )ears09 an&
/c0 the +irst entit) receives one or more amounts as
<
recoupment
o+ the loss or out.oin..
/20 This 6ub&ivision /e1cept this section an& section 20#600 applies as
i+ the +irst entit) an& the &e&uctin. entities to.ether constitute& a
sin.le entit) /the notional entity0 that ha&
/a0 incurre& the loss or out.oin.9 an&
/b0 receive& the amount or amounts as
<
recoupment9 an&
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
/c0 inclu&e& in its assessable income an) amount inclu&e& in the
assessable income o+ an) o+ the &e&uctin. entities un&er a
<
previous recoupment la' or this 6ub&ivision /e1cept this
section0.
/!0 -+ because o+ subsection /20 the notional entit)Js assessable income
+or an income )ear /the assessment year0 'oul& inclu&e an amount
un&er this 6ub&ivision /the assessable amount0, the amount
reverses in the assessment )ear the &e&uctions +or the loss or
out.oin., in accor&ance 'ith the rules in subsection /50.
/40 The assessable income o+ each &e&uctin. entit) +or the assessment
)ear inclu&es the total amounts /i+ an)0 b) 'hich that entit)Js
actual &e&uctions +or the loss or out.oin. are reverse& in that
income )ear.
/50 7e&uctions +or the loss or out.oin. are reverse& in the assessment
)ear as +ollo's
/a0 the amounts b) 'hich &e&uctions are reverse& total the
assessable amount /unless all the &e&uctions have been
reverse&09
/b0 a &e&uction +or an income )ear is not reverse& until all
&e&uctions +or earlier income )ears have been reverse&9
/c0 a &e&uction is not reverse& in the assessment )ear to the
e1tent that it has alrea&) been reverse& in an earlier )ear9
/&0 i+ each o+ 2 or more entities can &e&uct an amount +or the
loss or out.oin. +or the same income )ear, those &e&uctions
are reverse& in the assessment )ear b) amounts proportionate
to the amounts o+ the &e&uctions.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
6ub&ivision 20#?M7isposal o+ a car +or 'hich lease pa)ments
have been &e&ucte&
5ui&e to 6ub&ivision 20#?
This 6ub&ivision reverses the e++ect o+ &e&uctions +or lease
pa)ments +or a car lease& to )ou /or to )our associate0, but onl)
i+ )ou ma4e a pro+it b) &isposin. o+ the car a+ter ac=uirin. it
+rom the lessor. The sma""est o+ these amounts is inclu&e& in
)our assessable income
)our pro+it on the &isposal9
the total &e&uctible lease pa)ments +or the perio& o+ the
lease9
the total amounts )ou coul& have &e&ucte& +or the carJs
&ecline in value i+, instea& o+ leasin. it, )ou ha& o'ne& it
an& use& it solel) +or the purpose o+ pro&ucin. assessable
income.
Table o+ sections
20#105 Map o+ this 6ub&ivision
The usual case
20#110 7isposal o+ a lease& car +or pro+it
20#115 Aor4in. out the pro+it on the &isposal
20#120 Meanin. o+ notiona" depreciation
The associate case
6uccessive leases
20#1!0 6uccessive leases
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
(revious &isposals o+ the car
20#1!5 No amount inclu&e& i+ earlier &isposal +or mar4et value
20#140 3e&ucin. the amount to be inclu&e& i+ there has been an earlier &isposal
Miscellaneous rules
20#145 No amount inclu&e& i+ )ou inherite& the car
20#150 3e&ucin. the amount to be inclu&e& i+ another provision re=uires )ou to
inclu&e an amount +or the &isposal
20#155 %1ception +or particular cars ta4en on hire
20#15" %1ception +or small business entities
7isposals o+ interests in a car special rules appl)
20#160 7isposal o+ an interest in a car
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
20#105 Map o+ this 6ub&ivision
Disposal of aleasedcar for profit
If youdisposeof an
interest inacar instead
of thecar itself: see
section20-160
It applies whenyouleasethecar,
acquireit andthendisposeof it:
seesection20-110
Subdivision20-B
Section20-100gives
youthemainidea
of thisSubdivision
ThisSubdivision
appliesin2
different cases
Theusual case Theassociatecase
Disposalsof interests
It is morecomplicatedthanthe
usual casebecauseit mayinvolve
your associate: seesection20-125
Previousdisposals Miscellaneous rules Successiveleases
Rulesthat applyinbothcases

If youinherit thecar:
seesection20-145
If another provision
requiresyoutoinclude
anamount for the
disposal: see
section20-150
If youlet acar onhire

under ahirepurchase
agreement or onan
intermittent basis: see
section20-155
If therehasbeena
disposal of thecar before
youdisposedof it: see
sections20-135and
20-140
If therehavebeen2or
moreleasesof thecar:
seesection20-130
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
The usual case
/10 @our assessable income inclu&es the
<
pro+it )ou ma4e on &isposin.
o+ a
<
car i+
/a0 the car 'as &esi.ne& mainl) +or carr)in. passen.ers9 an&
/b0 the car 'as lease& to )ou an& has been lease& to no#one else9
an&
/c0 )ou or another entit) can &e&uct +or the income )ear an) o+
the lease pa)ments pai& or pa)able b) )ou, or have &e&ucte&
or can &e&uct an) o+ them +or an earlier income )ear, un&er
this Act9 an&
/&0 )ou ac=uire& the car +rom the lessor.
Note 1 %ven i+ subsection /10 &oes not appl), an amount ma) still be inclu&e&
in )our assessable income
D un&er section 20#125 /'hich &eals 'ith more complicate&
cases that ma) involve )our associate09 or
D i+ )ou &ispose& o+ an interest in a car /rather than the car
itsel+0 see section 20#160.
Note 2 -n some cases )ou &o not inclu&e an amount in )our assessable
income
D i+ there has been an earlier &isposal o+ the car +or mar4et value
see section 20#1!59 or
D i+ )ou inherite& the car see section 20#1459 or
D i+ the car 'as let on hire in the circumstances set out in
section 20#155.
/20 >o'ever, the amount inclu&e& cannot e1cee& the smaller o+ these
limits
/a0 the total lease pa)ments +or the lease that )ou or another
entit) have &e&ucte& or can &e&uct un&er this Act +or an
income )ear9
/b0 the amount o+
<
notional &epreciation +or the lease perio&.
Note 1 -+, because o+ more than one lease o+ the car, there is more than one
'a) to 'or4 out the amount to be inclu&e&, )ou onl) inclu&e the
lar.est amount see section 20#1!0.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
Note 2 -n some cases )ou re&uce the amount to be inclu&e&
D i+ there has been an earlier &isposal o+ the car, or o+ an interest
in it see section 20#1409 or
D i+ another provision re=uires )ou to inclu&e an amount because
o+ the &isposal see section 20#150.
/!0 @ou increase those limits i+ )ou have previousl) lease& the
<
car
+rom the same lessor, or +rom an
<
associate o+ that lessor.
@ou increase the +irst limit b) the total lease pa)ments +or each
previous lease o+ that 4in& that )ou or another entit) have &e&ucte&
or can &e&uct un&er this Act +or an income )ear.
@ou increase the secon& limit b) the amount o+
<
notional
&epreciation +or the perio& o+ each previous lease o+ that 4in&.
20#115 Aor4in. out the pro+it on the &isposal
/10 The profit on the &isposal is the amount b) 'hich the
<
consi&eration receivable +or the &isposal e1cee&s
D the amount it cost )ou to ac=uire the
<
car9
plus
D an) capital e1pen&iture )ou incurre& on the car a+ter
ac=uirin. it.
/20 The consideration receivable is 'or4e& out usin. this table
Consideration recei$a!le &or t"e disposal o& t"e car
Ite
m
In t"is situation: t"e consideration recei$a!le is:
1
)ou sell the
<
car +or an amount
speci+ic to it
the procee&s o+ the sale, less the
e1penses o+ the sale
2
)ou sell the
<
car 'ith other
propert) 'ithout a speci+ic amount
bein. allocate& to it
the part o+ the total procee&s o+ the
sale that is reasonabl) attributable to
the car less the part o+ the reasonabl)
attributable e1penses o+ the sale
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
!
)ou tra&e the
<
car in an& bu)
another car
the value o+ the tra&e#in, plus an)
other consi&eration )ou receive
4
)ou sell the
<
car an& another entit)
bu)s another car
the amount b) 'hich the cost o+ the
other car is re&uce& b) the sale, plus
an) other consi&eration )ou receive
5
)ou &ispose o+ the
<
car to an
insurer because it is lost or
&estro)e&
the amount or value receive& or
receivable un&er the insurance polic)
/!0 >o'ever, i+ the &isposal o+ the
<
car is a
<
ta1able suppl), the
consideration receivable &oes not inclu&e an amount e=ual to the
<
56T pa)able on the suppl).
20#120 Meanin. o+ notiona" depreciation
This is ho' to 'or4 out the notional depreciation +or a lease
perio&
Metho& statement
6tep 1. ,ompare
P the
<
carJs
<
cost to the lessor +or the purposes o+
6ub&ivision 40#, /'hich is about 'or4in. out
the cost o+
<
&epreciatin. assets09
'ith
P the carJs
<
termination value +or the purposes o+
section 40#!00 'hen the lessor &ispose& o+ it.
6tep 2. -+ the carJs cost e1cee&s the carJs termination value,
multipl) the e1cess b)
P the number o+ &a)s in the lease perio&9
&ivi&e& b)
P the number o+ &a)s the lessor o'ne& the car.
6tep !. The result is the notional depreciation +or the lease
perio&.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
6tep 4. -+ the carJs cost &oes not e1cee& the carJs termination
value, the notional depreciation +or the lease perio& is
Fero.
Note 1 The notional &epreciation +or the lease perio& represents
D the amount )ou coul& have &e&ucte& +or the carJs &ecline in
value i+, instea& o+ leasin. it, )ou ha& o'ne& it an& use& it
solel) +or the purpose o+ pro&ucin. assessable income +or
that perio&9
a&:uste& b)
D the balancin. a&:ustment )ou 'oul& have ma&e i+ )ou ha&
&ispose& o+ the car at the en& o+ that perio&.
Note 2 The carJs cost to the lessor is 'or4e& out &i++erentl) i+ the lessor
ac=uire& it in the 1$$6#$" income )ear or an earlier income )ear see
section 20#105 o+ the Income Tax 'Transitiona" (ro!isions) Act 1997.
Note ! The carJs termination value is 'or4e& out &i++erentl) i+ the lessor
&ispose& o+ it in the 1$$6#$" income )ear or an earlier income )ear
see section 20#110 o+ the Income Tax 'Transitiona" (ro!isions) Act
1997.
The associate case
/10 @our assessable income inclu&es the
<
pro+it )ou ma4e on &isposin.
o+ a
<
car i+
/a0 section 20#110 &oes not inclu&e an amount in )our assessable
income because o+ the &isposal9 an&
/b0 the car 'as &esi.ne& mainl) +or carr)in. passen.ers9 an&
/c0 the car 'as lease& to )ou or )our
<
associate9 an&
/&0 )ou, )our associate or another entit) can &e&uct +or the
income )ear an) o+ the lease pa)ments pai& or pa)able b) the
lessee, or have &e&ucte& or can &e&uct an) o+ them +or an
earlier income )ear, un&er this Act9 an&
/e0 either
/i0 )ou, )our associate, or entities inclu&in. )ou or )our
associate, ac=uire& the car +rom the lessor9 or
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
/ii0 another entit) ac=uire& the car +rom the lessor un&er an
<
arran.ement that enable& )ou or )our associate to
ac=uire the car.
Note 1 %ven i+ subsection /10 &oes not appl), an amount ma) be inclu&e& in
)our assessable income i+ )ou &ispose& o+ an interest in a car /rather
than the car itsel+0 see section 20#160.
Note 2 -n some cases )ou &o not inclu&e an amount in )our assessable
income
D i+ there has been an earlier &isposal o+ the car +or mar4et value
see section 20#1!59 or
D i+ )ou inherite& the car see section 20#1459 or
D i+ the car 'as let on hire in the circumstances set out in
section 20#155.
/20 >o'ever, the amount inclu&e& cannot e1cee& the smallest o+ these
limits
/a0 the total lease pa)ments +or the lease that )ou, )our
<
associate or another entit) have &e&ucte& or can &e&uct
un&er this Act +or an income )ear9
/b0 the amount o+
<
notional &epreciation +or the lease perio&9
/c0 i+ an entit) other than )ou, or i+ entities inclu&in. )ou,
ac=uire& the
<
car +rom the lessorMthe amount b) 'hich the
<
consi&eration receivable +or the &isposal o+ the car b) )ou
e1cee&s the total o+
/i0 the carJs cost to that entit), or those entities9 an&
/ii0 an) capital e1pen&iture that entit), or an) o+ those
entities, incurre& on the car a+ter that ac=uisition an&
be+ore )ou ac=uire& it.
Note 1 -+, because o+ more than one lease o+ the car, there is more than one
'a) to 'or4 out the amount to be inclu&e&, )ou onl) inclu&e the
lar.est amount see section 20#1!0.
Note 2 -n some cases )ou re&uce the amount to be inclu&e&
D i+ there has been an earlier &isposal o+ the car, or o+ an interest
in it see section 20#1409 or
D i+ another provision re=uires )ou to inclu&e an amount because
o+ the &isposal see section 20#150.
%1ample @our associate leases a car +or 5 )ears an& then ac=uires it +rom the
lessor +or S4,000. @our associate sells it to )ou +or S!,000. @ou sell it
+or S10,000.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
@our pro+it is S10,000 /the consi&eration receivable0 less S!,000 /the
carJs cost to )ou0 T S",000.
The +irst 2 limits on the amount to be inclu&e& in )our assessable
income are S$,000 /total &e&uctible lease pa)ments +or the lease0 an&
S8,000 /notional &epreciation +or the lease perio&0.
6ince )our associate ac=uire& the car +rom the lessor, the thir& limit is
S10,000 /the consi&eration receivable b) )ou0 less S4,000 /the carJs
cost to the associate0 T S6,000.
The amount )ou inclu&e in )our assessable income cannot e1cee& the
smallest o+ the limits. 6o, )ou &o not inclu&e )our pro+it o+ S",000.
-nstea&, )ou inclu&e S6,000 /the smallest o+ the limits0.
/!0 @ou increase the +irst 2 limits i+ )ou, or )our associate, have
previousl) lease& the
<
car +rom the same lessor, or +rom an
associate o+ that lessor.
@ou increase the +irst limit b) the total lease pa)ments +or each
previous lease o+ that 4in& that )ou, )our
<
associate or another
entit) have &e&ucte& or can &e&uct un&er this Act +or an income
)ear.
@ou increase the secon& limit b) the amount o+
<
notional
&epreciation +or the perio& o+ each previous lease o+ that 4in&.
6uccessive leases
20#1!0 6uccessive leases
-+, because o+ 2 or more leases o+ the
<
car, there are &i++erent
amounts that coul& be inclu&e& in )our assessable income because
o+ the &isposal, onl) the lar.est o+ those amounts is inclu&e&.
(revious &isposals o+ the car
20#1!5 No amount inclu&e& i+ earlier &isposal +or mar4et value
@ou &o not inclu&e an amount in )our assessable income because
o+ the &isposal i+, a+ter the lessor &ispose& o+ the
<
car an& be+ore
)ou &ispose& o+ it, an entit) other than )ou &ispose& o+ the car an&
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
/a0 the
<
consi&eration receivable +or that &isposal 'as at least the
<
mar4et value o+ the car at the time o+ that &isposal9 or
/b0 because o+ that &isposal, that mar4et value 'as inclu&e&, or
an amount 'or4e& out usin. that mar4et value 'as inclu&e&,
in the entit)Js assessable income un&er this Act.
20#140 3e&ucin. the amount to be inclu&e& i+ there has been an earlier
&isposal
%ach limit on the amount to be inclu&e& in )our assessable income
because o+ )our &isposal o+ the
<
car is re&uce& i+, a+ter the lease
perio& be.an an& be+ore )our &isposal, the car, or an interest in it,
'as &ispose& o+ in one o+ these situations
Ceducin% eac" limit on t"e amount to !e included
Ite
m
In t"is situation: reduce eac" limit !.:
1 6ection 20#110 or 20#125 inclu&e& an amount in )our
assessable income in respect o+ such an earlier
&isposal b) )ou
that amount
2 6ection 20#110 or 20#125 inclu&e& an amount in
another entit)Js assessable income in respect o+ such
an earlier &isposal b) the other entit)
that amount
! 6ection 20#110 or 20#125 'oul& have inclu&e& an
amount in )our assessable income in respect o+ such
an earlier &isposal b) )ou but +or the operation o+
section 20#145
that amount
4 6ection 20#110 or 20#125 'oul& have inclu&e& an
amount in another entit)Js assessable income in
respect o+ such an earlier &isposal b) the other entit)
but +or the operation o+ section 20#145
that amount
5 6ection 20#150 re&uce& the amount to be inclu&e& in
)our assessable income in respect o+ such an earlier
&isposal b) )ou
the amount o+ the
re&uction
6 6ection 20#150 re&uce& the amount to be inclu&e& in
another entit)Js assessable income in respect o+ such
an earlier &isposal b) the other entit)
the amount o+ the
re&uction
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
%1amples @our associate leases a car +or 5 )ears an& then ac=uires it. @our
associate &isposes o+ it to )ou an& section 20#110 inclu&es S500 in
)our associateJs assessable income.
@ou later &ispose o+ the car.
-n 'or4in. out the amount to inclu&e in )our assessable income +or
)our &isposal, )ou can re&uce each limit in subsection 20#125/20 b)
S500 because the &isposal b) )our associate occurre& a%ter the lease
perio& be.an.
,ontrast this case
@ou lease a car +or 5 )ears an& then ac=uire it. @ou &ispose o+ it to
another entit) an& section 20#110 inclu&es S1,000 in )our assessable
income.
@ou lease the car +rom that entit) +or 2 )ears an& then ac=uire it. @ou
later &ispose o+ it.
-n 'or4in. out the amount to inclu&e in )our assessable income in
respect o+ the secon& lease, )ou cannot re&uce each limit in
subsection 20#110/20 b) S1,000 because the +irst &isposal &i& not
occur a+ter the start o+ that lease.
Note -+ the earlier &isposal occurre& in the 1$$6#$" income )ear or an
earlier income )ear, each limit ma) be able to be re&uce& b) a +urther
amount see section 20#115 o+ the Income Tax 'Transitiona"
(ro!isions) Act 1997.
Miscellaneous rules
20#145 No amount inclu&e& i+ )ou inherite& the car
@ou &o not inclu&e an amount in )our assessable income because
o+ the &isposal i+ )ou inherite& the
<
car.
20#150 3e&ucin. the amount to be inclu&e& i+ another provision re=uires
)ou to inclu&e an amount +or the &isposal
The amount to be inclu&e& in )our assessable income because o+
the &isposal is re&uce& b) an) amount that another provision o+
this Act /e1cept sections 40#285 an& 40#!"00 re=uires )ou to
inclu&e in )our assessable income because o+ the &isposal.
Note sections 40#285 an& 40#!"0 are about inclu&in. an amount a+ter
ma4in. a balancin. a&:ustment on the &isposal o+ a car.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
This 6ub&ivision &oes not appl) to these 4in&s o+ leases
/a0 lettin. a
<
car on hire un&er a
<
hire purchase a.reement9 or
/b0 lettin. a
<
car on hire un&er an a.reement o+ a 4in& or&inaril)
entere& into b) people 'ho ta4e cars on hire intermittentl) on
an hourl), &ail), 'ee4l) or monthl) basis.
20#15" %1ception +or small business entities
This 6ub&ivision &oes not appl) to )ou i+, at an) time in the
income )ear in 'hich )ou &ispose& o+ the
<
car, it 'as allocate& to a
pool o+ )ours un&er 7ivision !28.
7isposals o+ interests in a car special rules appl)
20#160 7isposal o+ an interest in a car
/10 This 6ub&ivision applies to the &isposal o+ an interest in a
<
car in
almost the same 'a) as it &oes to the &isposal o+ the car itsel+. The
&i++erences are set out belo'.
/20 @our assessable income inclu&es so much o+ )our
<
pro+it on the
&isposal as is reasonable. The limits in subsections 20#110/20 an&
20#125/20 &o not appl).
/!0 The cost o+ the interest to )ou is ta4en to be a reasonable amount.
/40 6ections 20#1!5 an& 20#140 &o not appl) to the &isposal.
Note 1 6ection 20#1!5 sa)s that )ou &o not inclu&e an amount i+ there has
been an earlier &isposal o+ the car +or mar4et value.
Note 2 6ection 20#140 allo's )ou to re&uce the amount to be inclu&e& i+
there has been an earlier &isposal o+ the car.
/50 6ection 20#145 applies to the &isposal i+ )ou inherite& either the
interest or the
<
car itsel+.
Note 6ection 20#145 sa)s that )ou &o not inclu&e an amount i+ )ou
inherite& the car.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
(art 2#5M3ules about &e&uctibilit) o+ particular 4in&s
o+ amounts
7ivision 25M6ome amounts )ou can &e&uct
This 7ivision sets out some amounts )ou can &e&uct. 3emember
that the .eneral rules about &e&uctions in 7ivision 8 /'hich is
about .eneral &e&uctions0 appl) to this 7ivision.
Table o+ sections
25#5 Ta1#relate& e1penses
25#10 3epairs
25#15 Amount pai& +or lease obli.ation to repair
25#20 2ease &ocument e1penses
25#25 ?orro'in. e1penses
25#!0 %1penses o+ &ischar.in. a mort.a.e
25#!5 ?a& &ebts
25#40 2oss +rom pro+it#ma4in. un&erta4in. or plan
25#45 2oss b) the+t etc.
25#4" Misappropriation 'here a balancin. a&:ustment event occurs
25#50 (a)ments o+ pensions, .ratuities or retirin. allo'ances
25#55 (a)ments to associations
25#60 (arliament election e1penses
25#65 2ocal .overnment election e1penses
25#"0 7e&uction +or election e1penses &oes not e1ten& to entertainment
25#"5 3ates an& lan& ta1es on premises use& to pro&uce mutual receipts
25#85 ,ertain returns in respect o+ &ebt interests
25#$0 7e&uction relatin. to +orei.n non#assessable non#e1empt income
25#$5 7e&uction +or 'or4 in pro.ress amounts
25#105 7e&uctions +or Inite& Me&ical (rotection 2imite& support pa)ments
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
25#100 Travel bet'een 'or4places
25#110 ,apital e1pen&iture to terminate lease etc.
25#5 Ta1#relate& e1penses
/10 @ou can &e&uct e1pen&iture )ou incur to the e1tent that it is +or
/a0 mana.in. )our
<
ta1 a++airs9 or
/b0 compl)in. 'ith an obli.ation impose& on )ou b) a
<
,ommon'ealth la', inso+ar as that obli.ation relates to the
<
ta1 a++airs o+ an entit)9 or
/c0 the
<
.eneral interest char.e or the
<
short+all interest char.e9
or
/ca0 a penalt) un&er 6ub&ivision 162#7 o+ the
<
56T Act9 or
/&0 obtainin. a valuation in accor&ance 'ith section !0#212 or
!1#15.
Note 1 To +in& out 'hether a trustee o+ a &ecease& estate can &e&uct
e1pen&iture un&er this section, see subsection 6$/"0 o+ the Income Tax
Note 2 -+ )ou receive an amount as recoupment o+ the e1pen&iture, the
6ub&ivision 20#A.
No &e&uction +or certain e1pen&iture
/20 @ou cannot &e&uct un&er subsection /10
/a0
<
ta19 or
/b0 an amount 'ithhel& or pa)able un&er (art 2#5 or (art 2#10 in
6che&ule 1 to the Taxation Administration Act 19539 or
/c0 e1pen&iture +or
<
borro'in. mone) /inclu&in. pa)ments o+
interest0 to pa) an amount covere& b) para.raph /a0 or /b09 or
/&0 e1pen&iture +or a matter relatin. to the commission /or
possible commission0 o+ an o++ence a.ainst an
<
Australian
la' or a
<
+orei.n la'9 or
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
/e0 a +ee or commission +or a&vice about the operation o+ a
<
,ommon'ealth la' relatin. to ta1ation, unless that a&vice
is provi&e& b) a
<
reco.nise& ta1 a&viser.
No &e&uction +or e1pen&iture e1clu&e& +rom .eneral &e&uctions
/!0 @ou cannot &e&uct e1pen&iture un&er subsection /10 to the e1tent
that a provision o+ this Act /e1cept section 8#10 e1pressl) prevents
or limits )our &e&uctin. it un&er section 8#1 /about .eneral
&e&uctions0. -t &oes not matter 'hether the provision speci+icall)
re+ers to section 8#1.
No &e&uction +or capital e1pen&iture
/40 @ou cannot &e&uct capital e1pen&iture un&er subsection /10.
>o'ever, +or this purpose, e1pen&iture is not capital e1pen&iture
merel) because the
<
ta1 a++airs concerne& relate to matters o+ a
capital nature.
%1ample In&er this section, )ou can &e&uct e1pen&iture )ou incur in appl)in.
+or a private rulin. on 'hether )ou can &epreciate an item o+ propert).
Ise o+ propert) ta4en to be +or income pro&ucin. purpose
/50 In&er some provisions o+ this Act it is important to &eci&e 'hether
)ou use& propert) +or the
<
purpose o+ pro&ucin. assessable
income. Eor provisions o+ that 4in&, )our use o+ propert) is ta4en
to be +or that purpose inso+ar as )ou use the propert) +or
/a0 mana.in. )our
<
ta1 a++airs9 or
/b0 compl)in. 'ith an obli.ation impose& on )ou b) a
<
,ommon'ealth la', inso+ar as that obli.ation relates to the
<
ta1 a++airs o+ another entit).
%1ample @ou bu) a computer to prepare )our ta1 returns. The e1pen&iture )ou
incur in bu)in. the computer is capital e1pen&iture an& cannot be
&e&ucte& un&er this section.
>o'ever, to the e1tent that )ou use the computer in preparin. )our
income ta1 return, )ou 'ill be able to &e&uct the &ecline in value o+
)our computer un&er 7ivision 40. That is because, un&er this
subsection, the computer is propert) that )ou are ta4en to use +or the
purpose o+ pro&ucin. assessable income.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
/60 -+ another provision o+ this Act e1pressl) provi&es that a particular
use o+ propert) is not ta4en to be +or the
<
purpose o+ pro&ucin.
assessable income, that provision overri&es subsection /50.
No &ouble &e&uction +or .eneral interest char.e on a runnin.
balance account
/"0 -+ )ou &e&uct
<
.eneral interest char.e that applies to an 3?A
&e+icit &ebt, )ou canJt also &e&uct the correspon&in. .eneral
interest char.e on
<
ta1 &ebts that have been allocate& to the 3?A.
Note 3?As /runnin. balance accounts0 are &ealt 'ith in (art --? o+ the
Taxation Administration Act 1953.
%1pen&iture b) trustee o+ &ecease& estate
/80 -+
/a0 a+ter )ou &ie, the trustee o+ )our &ecease& estate incurs
e1pen&iture9 an&
/b0 ha& )ou incurre& the e1pen&iture be+ore )ou &ie&, )ou coul&
have &e&ucte& it un&er subsection /109
+or the purposes o+ assessin. the trustee +or the income )ear in
'hich )ou &ie&, the e1pen&iture is a &e&uction un&er that
subsection.
25#10 3epairs
/10 @ou can &e&uct e1pen&iture )ou incur +or repairs to premises /or
part o+ premises0 or a
<
&epreciatin. asset that )ou hel& or use&
so"e"y +or the
<
(ropert) hel& or use& partl) +or that purpose
/20 -+ )ou hel& or use& the propert) onl) part"y +or that purpose, )ou
can &e&uct so much o+ the e1pen&iture as is reasonable in the
circumstances.
/!0 @ou cannot &e&uct capital e1pen&iture un&er this section.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
25#15 Amount pai& +or lease obli.ation to repair
@ou can &e&uct an amount that )ou pa) +or +ailin. to compl) 'ith
a lease obli.ation to ma4e repairs to premises i+ )ou use or have
use& the premises +or the
<
Note The amount is assessable income o+ the entit) to 'hich )ou pa) it
either as or&inar) income un&er section 6#5 or because it is inclu&e&
b) section 15#25.
25#20 2ease &ocument e1penses
/10 @ou can &e&uct e1pen&iture )ou incur +or preparin., re.isterin. or
stampin.
/a0 a lease o+ propert)9 or
/b0 an assi.nment or surren&er o+ a lease o+ propert)9
i+ )ou have use& or 'ill use the propert) so"e"y +or the
<
purpose o+
pro&ucin. assessable income.
(ropert) use& partl) +or that purpose
/20 -+ )ou have use&, or 'ill use, the lease& propert) onl) part"y +or
that purpose, )ou can &e&uct the e1pen&iture to the e1tent that )ou
have use&, or 'ill use, the lease& propert) +or that purpose.
25#25 ?orro'in. e1penses
/10 @ou can &e&uct e1pen&iture )ou incur +or
<
borro'in. mone), to
the e1tent that )ou use the mone) +or the
<
purpose o+ pro&ucin.
assessable income. -n most cases the &e&uction is sprea& over the
<
perio& o+ the loan.
Eor the cases 'here the &e&uction is not sprea&, see subsection /60.
Note @our &e&uctions un&er this section ma) be re&uce& i+ an) o+ )our
commercial &ebts have been +or.iven in the income )ear see
6ub&ivision 245#%.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
-ncome )ear 'hen mone) use& solel) +or the purpose o+ pro&ucin.
assessable income
/20 @ou can &e&uct +or an income )ear the ma1imum amount 'or4e&
out un&er subsection /40 i+ )ou use the
<
borro'e& mone) &urin.
that income )ear so"e"y +or the
<
purpose o+ pro&ucin. assessable
income.
%1ample -n 1$$"#$8 )ou borro' S100,000 an& incur e1pen&iture o+ S1,500 +or
the borro'in.. @ou use the mone) to bu) a house. Throu.hout
1$$8#$$ )ou rent the house to a tenant. @ou can &e&uct +or the
e1pen&iture +or 1$$8#$$ the ma1imum amount 'or4e& out un&er
subsection /40.
-ncome )ear 'hen borro'e& mone) use& partl) +or that purpose
/!0 -+ )ou use the mone) onl) part"y +or that purpose &urin. that
income )ear, )ou can &e&uct the proportion o+ that ma1imum
amount that is appropriate havin. re.ar& to the e1tent that )ou use&
the
<
borro'e& mone) +or that purpose.
Note @ou cannot &e&uct an)thin. +or that income )ear i+ )ou &o not use the
mone) +or that purpose at all &urin. that income )ear.
Ma1imum &e&uction +or an income )ear
/40 @ou 'or4 out as +ollo's the ma1imum amount that )ou can &e&uct
+or the e1pen&iture +or an income )ear
Metho& statement
6tep 1. Aor4 out the remaining expenditure as +ollo's
P Eor the income )ear in 'hich the
<
perio& o+ the
loan be.ins, it is the amount o+ the e1pen&iture.
P Eor a later income )ear, it is the amount o+ the
e1pen&iture re&uce& b) the the ma1imum
amount that )ou can &e&uct +or the e1pen&iture
+or each earlier income )ear.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
6tep 2. Aor4 out the remaining loan period as +ollo's
P Eor the income )ear in 'hich the
<
perio& o+ the
loan be.ins, it is the perio& o+ the loan /as
&etermine& at the en& o+ the income )ear0.
P Eor a later income )ear, it is the perio& +rom the
start o+ the income )ear until the en& o+ the
perio& o+ the loan /as &etermine& at the en& o+
the income )ear0.
6tep !. 7ivi&e the remainin. e1pen&iture b) the number o+
&a)s in the remainin. loan perio&.
6tep 4. Multipl) the result +rom 6tep ! b) the number o+ &a)s
in the remainin. loan perio& that are in the income
)ear.
%1ample To continue the e1ample in subsection /20 suppose the ori.inal perio&
o+ the loan is 4 )ears startin. on 1 6eptember 1$$". Ahat is the
ma1imum amount )ou can &e&uct +or the e1pen&iture +or 1$$"#$8G
A+ter 6tep 1 the remainin. e1pen&iture is S1,500 /the amount o+ the
e1pen&iture0.
A+ter 6tep 2 the remainin. loan perio& is 4 )ears +rom 1 6eptember
1$$" /1,461 &a)s0.
A+ter 6tep ! the result is S1,500 &ivi&e& b) 1,461 T S1.0!.
A+ter 6tep 4 the result is S1.0! multiplie& b) !02 &a)s T S!10.06.
6uppose )ou repa) the loan earl), on !1 7ecember 1$$8. Ahat is the
ma1imum amount )ou can &e&uct +or the e1pen&iture +or 1$$8#$$G
A+ter 6tep 1 the remainin. e1pen&iture is S1,500 /the amount o+ the
e1pen&iture0 re&uce& b) S!10.06 /the ma1imum amount )ou can
&e&uct +or 1$$"#$80 T S1,18$.$4.
A+ter 6tep 2 the remainin. loan perio& is the perio& +rom 1 8ul) 1$$8
to !1 7ecember 1$$8 /18! &a)s0.
A+ter 6tep ! the result is S1,18$.$4 &ivi&e& b) 18! &a)s T S6.50.
A+ter 6tep 4 the result is S6.50 multiplie& b) 18! &a)s T S1,18$.$4.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
Meanin. o+ period o& t"e loan
/50 The period of the loan is the shortest o+ these perio&s
/a0 the perio& o+ the loan as speci+ie& in the ori.inal loan
contract9
/b0 the perio& startin. on the +irst &a) on 'hich the mone) 'as
borro'e& an& en&in. on the &a) the loan is repai&9
/c0 5 )ears startin. on the +irst &a) on 'hich the mone) 'as
borro'e&.
Ahen &e&uction not sprea&
/60 -+ the total o+ the +ollo'in. is S100 or less
/a0 each amount o+ e1pen&iture )ou incur in an income )ear +or
<
borro'in. mone) )ou use &urin. that income )ear so"e"y +or
the
<
purpose o+ pro&ucin. assessable income9
/b0 +or each amount o+ e1pen&iture )ou incur in that income )ear
+or borro'in. mone) )ou use &urin. that income )ear onl)
part"y +or that purposeMthe proportion o+ that amount that is
appropriate havin. re.ar& to the e1tent that )ou use the
mone) &urin. that income )ear +or that purpose9
)ou can &e&uct +or the income )ear
/c0 each amount covere& b) para.raph /a09 an&
/&0 each proportion covere& b) para.raph /b0.
25#!0 %1penses o+ &ischar.in. a mort.a.e
Mort.a.e +or borro'e& mone)
/10 @ou can &e&uct e1pen&iture )ou incur to &ischar.e a mort.a.e that
)ou .ave as securit) +or the repa)ment o+ mone) that )ou
<
borro'e& i+ )ou use& the mone) so"e"y +or the
<
purpose o+
Mort.a.e +or propert) bou.ht
/20 @ou can &e&uct e1pen&iture )ou incur to &ischar.e a mort.a.e that
)ou .ave as securit) +or the pa)ment o+ the 'hole or part o+ the
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
purchase price o+ propert) that )ou bou.ht i+ )ou use& the propert)
so"e"y +or the
<
Mone) or propert) use& partl) +or that purpose
/!0 -+ )ou use& the mone) )ou
<
borro'e&, or the propert) )ou bou.ht,
onl) part"y +or the
<
purpose o+ pro&ucin. assessable income, )ou
can &e&uct the e1pen&iture to the e1tent that )ou use& the mone) or
propert) +or that purpose.
No &e&uction +or pa)ments o+ principal or interest
/40 @ou cannot &e&uct pa)ments o+ principal or interest un&er this
section.
25#!5 ?a& &ebts
/10 @ou can &e&uct a &ebt /or part o+ a &ebt0 that )ou 'rite o++ as ba&
in the income )ear i+
/a0 it 'as inclu&e& in )our assessable income +or the income
)ear or +or an earlier income )ear9 or
/b0 it is in respect o+ mone) that )ou lent in the or&inar) course
o+ )our
<
business o+ len&in. mone).
Note -+ a ba& &ebt is in respect o+ a pa)ment that is re=uire& to be ma&e
un&er a =uali+)in. securit) /'ithin the meanin. o+ 7ivision 16% o+
(art --- o+ the Income Tax Assessment Act 19360 see
subsection 6!/1A0 o+ that Act.
Aritin. o++ a &ebt )ou have bou.ht
/20 @ou can &e&uct a &ebt that )ou 'rite o++ as ba& in the income )ear
i+ )ou bou.ht the &ebt in the or&inar) course o+ )our
<
business o+
len&in. mone). >o'ever, )ou cannot &e&uct more than the
e1pen&iture )ou incurre& in bu)in. the &ebt.
Aritin. o++ part o+ a &ebt )ou have bou.ht
/!0 @ou can &e&uct a part o+ a &ebt i+
/a0 )ou 'rite o++ that part as ba& in the income )ear9 an&
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
/b0 )ou bou.ht the &ebt in the or&inar) course o+ )our
<
business
o+ len&in. mone).
/40 >o'ever, the ma1imum that )ou can &e&uct un&er subsection /!0
+or one or more income )ears is the amount /i+ an)0 b) 'hich
P the e1pen&iture )ou incurre& in bu)in. the &ebt9
e1cee&s
P so much o+ the &ebt as has not )et been 'ritten o++ as ba&.
2imit on &e&uctions +or ba& &ebts un&er leases o+ lu1ur) cars
/4A0 There is a limit to ho' much )ou can &e&uct un&er this section +or
&ebts )ou 'rite o++ that relate to
<
lu1ur) car lease pa)ments that
have become or 'ill become liable to be ma&e un&er a lease o+ a
<
car to 'hich 7ivision 242 /about lu1ur) car leases0 applies.
/4?0 The most )ou can &e&uct +or an income )ear is
P the interest +or the notional loan )ou are ta4en to have ma&e
to the lessee9
re&uce& b)
P each amount that )ou have &e&ucte&, or can &e&uct, +or an
earlier income )ear un&er this section /or section 6! o+ the
Income Tax Assessment Act 19360 +or &ebts relatin. to
<
lu1ur) car lease pa)ments that have become or 'ill become
liable to be ma&e un&er the lease.
6pecial rules a++ectin. &e&uctions un&er this section
/50 The rules &escribe& in the table ma) a++ect )our entitlement to
&e&uctions un&er this section, or ma) result in a &e&uction bein.
reverse&.
Cules a&&ectin% deductions &or !ad de!ts
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
Ite
m
:or t"e rules a!out t"is situation: /ee:
1 A compan) cannot &e&uct a ba& &ebt i+ there
has been a chan.e in o'nership or control o+
the compan) an& the compan) has not
satis+ie& the same business test.
6ub&ivisions
165#, an&
166#,
2 A compan) cannot &e&uct a ba& &ebt in
various other cases that ma) involve
tra++ic4in. in ba& &ebts.
6ub&ivision
1"5#, an&
section 63+
! A &e&uction un&er this section is re&uce& i+
the &ebt is +or.iven an& the &ebtor an&
cre&itor are companies un&er common
o'nership an& a.ree +or the cre&itor to +or.o
the &e&uction to a speci+ie& e1tent.
section 245#$0
4 -+ )ou receive an amount as recoupment o+ a
ba& &ebt that )ou can &e&uct un&er this
section, the amount ma) be inclu&e& in )our
assessable income.
6ub&ivision
20#A
5 ,ertain trusts cannot &e&uct a ba& &ebt i+
there has been a chan.e in o'nership or
control or an abnormal tra&in. in their units
+i$isions )66
and )67 in
/c"edule ):
6 An entit) that use& to be a member o+ a
consoli&ate& .roup or M%, .roup can
&e&uct a ba& &ebt that use& to be o'e& to a
member o+ the .roup onl) i+ certain
con&itions are met
6ub&ivisions
"0$#7 an&
"1$#-
Note 6ubsections 2!0#180/!0, /50 an& /60 an& 2!0#1$5/!0, /50 an& /60
provi&e that in certain circumstances a &e&uction +or a loss in relation
to a +inancial arran.ement is to be treate&, +or the purposes o+ this Act,
as a &e&uction o+ a ba& &ebt. The rules re+erre& to in this subsection
appl) to that &e&uction.
25#40 2oss +rom pro+it#ma4in. un&erta4in. or plan
/10 @ou can &e&uct a loss arisin. +rom the carr)in. on or carr)in. out
o+ a pro+it#ma4in. un&erta4in. or plan i+ an) pro+it +rom that plan
'oul& have been inclu&e& in )our assessable income b)
section 15#15 /'hich is about pro+it#ma4in. un&erta4in.s an&
plans0.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
Ahen section &oes not appl)
/20 @ou cannot &e&uct a loss un&er subsection /10 i+ the loss arises in
respect o+ the sale o+ propert) ac=uire& on or a+ter 20 6eptember
1$85.
Note -+ )ou sell propert) )ou ac=uire& &e%ore 20 6eptember 1$85 +or
pro+it#ma4in. b) sale, )ou ma) be able to &e&uct a loss on the sale
see section 52 o+ the Income Tax Assessment Act 1936.
Notice to ,ommissioner
/!0 @ou can &e&uct a loss un&er subsection /10, inso+ar as it arises in
respect o+ propert), onl) i+
/a0 )ou noti+ie& the ,ommissioner that )ou ac=uire& the propert)
+or the purpose o+ pro+it#ma4in. b) sale or +or the carr)in.
on or carr)in. out o+ an) pro+it#ma4in. un&erta4in. or plan
/ho'ever &escribe&09 or
/b0 the ,ommissioner is satis+ie& that )ou ac=uire& the propert)
+or either o+ those purposes.
Ahen notice must have been .iven
/40 The notice must have been .iven at or be+ore the time )ou lo&.e&
)our
<
income ta1 return
/a0 +or the income )ear in 'hich )ou ac=uire& the propert)9 or
/b0 i+ )ou 'ere not re=uire& to lo&.e an income ta1 return +or
that income )earM+or the +irst income )ear a+ter that income
)ear +or 'hich )ou +ere re=uire& to lo&.e one.
25#45 2oss b) the+t etc.
@ou can &e&uct a loss in respect o+ mone) i+
/a0 )ou &iscover the loss in the income )ear9 an&
/b0 the loss 'as cause& b) the+t, stealin., embeFFlement, larcen),
&e+alcation or misappropriation b) )our emplo)ee or
<
a.ent
/other than an in&ivi&ual )ou emplo) solel) +or private
purposes09 an&
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
/c0 the mone) 'as inclu&e& in )our assessable income +or the
income )ear, or +or an earlier income )ear.
Note -+ )ou receive an amount as recoupment o+ the loss, the amount ma)
be inclu&e& in )our assessable income see 6ub&ivision 20#A.
25#4" Misappropriation 'here a balancin. a&:ustment event occurs
/10 @ou can &e&uct an amount i+
/a0 a
<
balancin. a&:ustment event occurs +or a
<
&epreciatin. asset
)ou
<
hel&9 an&
/b0 )our emplo)ee or
<
a.ent misappropriates /'hether b) the+t,
embeFFlement, larcen) or other'ise0 all or part o+ the amount
applicable to )ou un&er
/i0 item 8 o+ the table in subsection 40#!00/209 or
/ii0 item 1, !, 4 or 6 o+ the table in subsection 40#!05/109
in relation to the balancin. a&:ustment event.
Note 1 The amount applicable to )ou un&er subsection 40#!00/20 or
40#!05/10 ma) be the mar4et value o+ an asset or o+ a non#cash
bene+it.
Note 2 -+ )ou receive an amount as recoupment o+ the amount
misappropriate&, the amount ma) be inclu&e& in )our assessable
income see 6ub&ivision 20#A.
/20 The amount )ou can &e&uct is so much o+ the amount
misappropriate& as represents an amount applicable to )ou un&er
item 8 o+ the table in subsection 40#!00/20 or item 1, !, 4 or 6 o+
the table in subsection 40#!05/10 in relation to the
<
balancin.
a&:ustment event.
/!0 @ou can &e&uct the amount +or the income )ear in 'hich the
misappropriation happens.
/40 @ou must re&uce the amount )ou can &e&uct un&er this section i+
)our &e&uctions +or the asset have been re&uce& un&er
section 40#25 because o+ use +or a purpose other than a
<
ta1able
purpose. The re&uction is b) the same proportion )ou re&uce the
balancin. a&:ustment amount +or the asset un&er section 40#2$0.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
/50 6ection 1"0 o+ the Income Tax Assessment Act 1936 &oes not
prevent the amen&ment o+ an assessment +or the purposes o+ .ivin.
e++ect to this section +or an income )ear i+
/a0 )ou &iscover the misappropriation a+ter )ou lo&.e& )our
<
income ta1 return +or the income )ear9 an&
/b0 the amen&ment is ma&e at an) time &urin. the perio& o+ 4
)ears startin. imme&iatel) a+ter )ou &iscover the
misappropriation.
25#50 (a)ments o+ pensions, .ratuities or retirin. allo'ances
/10 @ou can &e&uct a pa)ment o+ a pension, .ratuit) or retirin.
allo'ance that )ou ma4e to
/a0 an emplo)ee9 or
/b0 a +ormer emplo)ee9 or
/c0 a &epen&ant o+ an emplo)ee or a +ormer emplo)ee.
/20 >o'ever, )ou can &e&uct it onl) to the e1tent that it is ma&e in
.oo& +aith in consi&eration o+ the past services o+ the emplo)ee, or
+ormer emplo)ee, in an)
<
business that )ou carrie& on +or the
purpose o+ .ainin. or pro&ucin. assessable income.
/!0 @ou cannot &e&uct a pa)ment un&er this section i+ )ou can &e&uct
it un&er an) other provision o+ this Act.
25#55 (a)ments to associations
/10 @ou can &e&uct a pa)ment )ou ma4e +or membership o+ a tra&e,
business or pro+essional association.
Note Alternativel), )ou can &e&uct the e1pense un&er section 8#1 /'hich is
about .eneral &e&uctions0 i+ )ou satis+) the re=uirements o+ that
section.
Ma1imum amountMS42
/20 >o'ever, S42 is the ma1imum amount )ou can &e&uct un&er this
section +or the pa)ments that )ou ma4e in the income )ear to an)
one association.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
-+ )ou &e&uct un&er section 8#1
/!0 -+ )ou &e&uct a pa)ment un&er section 8#1 /'hich is about .eneral
&e&uctions0 instea& o+ this section
/a0 the pa)ment &oes not count to'ar&s the S42 limit9 an&
/b0 the amount that )ou can &e&uct +or the pa)ment is not limite&
to S42.
25#60 (arliament election e1penses
/10 @ou can &e&uct e1pen&iture )ou incur in contestin. an election +or
membership o+
/a0 the (arliament o+ the ,ommon'ealth9 or
/b0 the (arliament o+ a 6tate9 or
/c0 the 2e.islative Assembl) +or the Australian ,apital Territor)9
or
/&0 the 2e.islative Assembl) o+ the Northern Territor) o+
Australia.
Note 1 %ntertainment e1penses are e1clu&e& see section 25#"0.
Note 2 -+ )ou receive an amount as recoupment o+ the e1pen&iture, the
6ub&ivision 20#A.
25#65 2ocal .overnment election e1penses
/10 @ou can &e&uct e1pen&iture )ou incur in contestin. an election +or membership o+
a
<
local .overnin. bo&), but )ou cannot &e&uct more than S1,000 per election.
@ou &e&uct the e1pen&iture +or the income )ear in 'hich )ou incur it.
/20 >o'ever, )ou can &e&uct more than the S1,000 limit i+
/a0 )ou have receive& an amount as
<
recoupment o+ the e1pen&iture9 an&
/b0 some or all o+ that amount is inclu&e& in )our assessable income +or an
income )ear9 an&
/c0 the total o+ )our &e&uctions +or the election 'oul& be less than the S1,000
limit i+ )ou &isre.ar&e& so much /the assessed recoupment0 o+ the
e1pen&iture as e=uals the amount so inclu&e& in )our assessable income.
-n that case
/&0 the assesse& recoupment is &isre.ar&e& in appl)in. the S1,000 limit9 an&
/e0 the +urther amount that )ou can &e&uct because o+ para.raph /&0 is
&e&ucte& +or the income )ear re+erre& to in para.raph /b0.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
%1ample ,hris is electe& to the ?un)ip 6hire ,ouncil. -n the 200"#08 income
)ear he incurs e1pen&iture o+ S1,200 in contestin. the election, o+
'hich he &e&ucts S1,000 /the limit un&er subsection /100.
-n 2008#0$, ,hris receives S!60 as an assessable recoupment o+ the
e1pen&iture. S!00 o+ that is inclu&e& in his assessable income b)
section 20#!5 /as e1ten&e& b) section 20#500.
?ecause o+ the assessable recoupment, S!00 o+ the e1pen&iture is
&isre.ar&e& un&er para.raph /20/&0 in appl)in. the S1,000 limit. As a
result, ,hrisJs &e&uctions are treate& as bein. onl) S"00, 'hich is less
than the limit. This &oes not a++ect his ori.inal &e&uction +or
200"#2008, but it means he can &e&uct the previousl) un&e&ucte&
S200, +or 2008#0$ /see para.raph /20/e00.
This tri..ers a +urther application o+ section 20#!5 /as e1ten&e& b)
section 20#500 to inclu&e the remainin. S60 o+ the assessable
recoupment in ,hrisJs assessable income +or 2008#0$. >is total
&e&uctions /net o+ recoupment inclu&e& in assessable income0 come to
S840, 'hich is the same as his ori.inal e1pen&iture /net o+
recoupment0.
Note An amount )ou receive as recoupment o+ e1pen&iture ma) be inclu&e&
in )our assessable income as an assessable recoupment un&er
6ub&ivision 20#A, as or&inar) income un&er section 6#5 or as
statutor) income un&er some other provision.
25#"0 7e&uction +or election e1penses &oes not e1ten& to entertainment
/10 To the e1tent that )ou incur e1pen&iture in respect o+ provi&in.
<
entertainment, )ou cannot &e&uct it un&er section 25#60 or 25#65.
/20 >o'ever, subsection /10 &oes not stop )ou &e&uctin. e1pen&iture
to the e1tent that )ou incur it in respect o+
/a0 provi&in.
<
entertainment that is available to the public
.enerall)9 or
/b0 provi&in. +oo& or &rin4 to )oursel+, unless it 'oul& be
conclu&e& that )ou have a purpose o+ enablin. or +acilitatin.
<
entertainment to be provi&e& to someone else.
25#"5 3ates an& lan& ta1es on premises use& to pro&uce mutual receipts
/10 An entit) can &e&uct these amounts it pa)s +or premises
/a0 rates 'hich are annuall) assesse&9
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
/b0 lan& ta1 impose& un&er a
<
6tate la' or
<
Territor) la'.
?ut onl) i+ it uses the premises
/c0 +or the purpose o+ pro&ucin. mutual receipts9 or
/&0 in carr)in. on a
<
business +or the purpose o+ pro&ucin.
mutual receipts9 or
/e0 +or the purpose o+ pro&ucin. amounts to 'hich section 5$#!5
applies /amounts that 'oul& be mutual receipts but +or
prohibition on &istributions to members09 or
/+0 in carr)in. on a
<
amounts to 'hich section 5$#!5 applies.
Note -+ the entit) receives an amount as recoupment o+ the rates or lan& ta1,
the amount ma) be inclu&e& in its assessable income see
6ub&ivision 20#A
Ahen premises use& onl) +or &e&uctible purposes
/20 The entit) can &e&uct the +ho"e o+ the rates or lan& ta1 i+ it uses
the premises on"y in one or more o+ these 'a)s
/a0 +or the purpose o+ pro&ucin. mutual receipts9
/b0 in carr)in. on a
<
mutual receipts9
/c0 +or the
<
Ahen premises use& partl) +or &e&uctible purposes
/!0 -+ the entit) uses the premises part"y in one or more o+ the 'a)s
re+erre& to in subsection /20 an& partl) in some other 'a), it can
&e&uct the rates or lan& ta1 to the e1tent that it uses the premises in
one or more o+ the 'a)s re+erre& to in that subsection.
No &e&uction un&er section 8#1
/40 The entit) cannot &e&uct the rates or lan& ta1 un&er section 8#1
/'hich is about .eneral &e&uctions0.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
25#85 ,ertain returns in respect o+ &ebt interests
/10 This section &eals 'ith a
<
return that an entit) pa)s or provi&es on
a
<
&ebt interest.
/20 The
<
return is not prevente& +rom bein. a
<
.eneral &e&uction +or an
income )ear un&er section 8#1 merel) because
/a0 the return is
<
contin.ent on the economic per+ormance
/'hether past, current or +uture0 o+
/i0 the entit) or a part o+ the entit)Js activities9 or
/ii0 a
<
connecte& entit) o+ the entit) or a part o+ the
activities o+ a connecte& entit) o+ the entit)9 or
/b0 the return secures a permanent or en&urin. bene+it +or the
entit) or a connecte& entit) o+ the entit).
/!0 -+ the
<
return is a
<
&ivi&en&, the entit) can &e&uct the return to the
e1tent to 'hich it 'oul& have been a
<
.eneral &e&uction un&er
section 8#1 i+
/a0 the pa)ment o+ the return 'ere the incurrin. b) the entit) o+ a
liabilit) to pa) the same amount as interest9 an&
/b0 that interest 'ere incurre& in respect o+ the +inance raise& b)
the entit) an& in respect o+ 'hich the return 'as pai& or
provi&e&9 an&
/c0 the
<
&ebt interest retaine& its character as a &ebt interest +or
the purposes o+ subsection /20.
/40 6ubsections /20 an& /!0 &o not appl) to a
<
return to the e1tent to
'hich it 'oul& be a
<
.eneral &e&uction un&er section 8#1 apart
+rom this section.
/4A0 6ubsections /20 an& /!0 &o not appl) to a
<
return on a
<
&ebt interest
that is a
<
7ivision 2!0 +inancial arran.ement.
/50 6ub:ect to re.ulations ma&e +or the purposes o+ subsection /60,
subsections /20 an& /!0 &o not appl) to the return to the e1tent to
'hich the annuall) compoun&e& internal rate o+ return e1cee&s the
<
benchmar4 rate o+ return +or the interest increase& b) 150 basis
points.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
/60 The re.ulations ma) provi&e that subsection /50 applies in the
circumstances speci+ie& in the re.ulations as i+ the re+erence to 150
basis points 'ere a re+erence to a .reater or lesser number o+ basis
points.
25#$0 7e&uction relatin. to +orei.n non#assessable non#e1empt income
An
<
Australian entit) can &e&uct an amount o+ loss or out.oin.
+rom its assessable income +or an income )ear i+
/a0 the amount is incurre& b) the entit) in &erivin. income +rom
a +orei.n source9 an&
/b0 the income is
<
non#assessable non#e1empt income un&er
section 2!A-, 2!A8 or 2!AN o+ the Income Tax Assessment
Act 19369 an&
/c0 the amount is a cost in relation to a
<
&ebt interest issue& b)
the entit) that is covere& b) para.raph /10/a0 o+ the &e+inition
o+ debt deduction.
Note This section &oes not appl) to a 7ivision 2!0 +inancial arran.ement.
25#$5 7e&uction +or 'or4 in pro.ress amounts
/10 @ou can &e&uct a
<
'or4 in pro.ress amount that )ou pa) +or the
income )ear in 'hich )ou pa) it to the e1tent that, as at the en& o+
that income )ear
/a0 a recoverable &ebt has arisen in respect o+ the completion or
partial completion o+ the 'or4 to 'hich the amount relate&9
or
/b0 )ou reasonabl) e1pect a recoverable &ebt to arise in respect
o+ the completion or partial completion o+ that 'or4 'ithin
the perio& o+ 12 months a+ter the amount 'as pai&.
/20 @ou can &e&uct the remain&er /i+ an)0 o+ the
<
'or4 in pro.ress
amount +or the +ollo'in. income )ear.
/!0 An amount is a !or" in progress amount to the e1tent that
/a0 an entit) a.rees to pa) the amount to another entit) /the
recipient09 an&
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
/b0 the amount can be i&enti+ie& as bein. in respect o+ 'or4 /but
not .oo&s0 that has been partiall) per+orme& b) the recipient
+or a thir& entit) but not )et complete& to the sta.e 'here a
recoverable &ebt has arisen in respect o+ the completion or
partial completion o+ the 'or4.
/40 An amount &oes not stop bein. a !or" in progress amount merel)
because it is pai& a+ter a recoverable &ebt has arisen in respect o+
the completion or partial completion o+ the 'or4 to 'hich the
amount relate&.
25#105 7e&uctions +or Inite& Me&ical (rotection 2imite& support
pa)ments
/10 @ou can &e&uct an amount that )ou pa) +or the income )ear in
'hich )ou pa) it to the e1tent that it consists o+ a
<
Inite& Me&ical
(rotection 2imite& support pa)ment.
/20 A #nited $edical rotection %imited support payment is an
amount pa)able un&er 7ivision 1 o+ (art ! o+ the Medica"
Indemnity Act $00$.
/!0 @ou cannot &e&uct an amount un&er this section i+ )ou can &e&uct
it un&er an) other provision o+ this Act.
25#100 Travel bet'een 'or4places
Ahen a &e&uction is allo'e&
/10 -+ )ou are an in&ivi&ual, )ou can &e&uct a
<
transport e1pense to the
e1tent that it is incurre& in )our
<
travel bet'een 'or4places.
Travel bet'een 'or4places
/20 @our travel bet!een !or"places is travel &irectl) bet'een 2
places, to the e1tent that
/a0 'hile )ou 'ere at the +irst place, )ou 'ere
/i0 en.a.e& in activities to .ain or pro&uce )our assessable
income9 or
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
/ii0 en.a.e& in activities in the course o+ carr)in. on a
<
business +or the purpose o+ .ainin. or pro&ucin. )our
assessable income9 an&
/b0 the purpose o+ )our travel to the secon& place 'as to
/i0 en.a.e in activities to .ain or pro&uce )our assessable
income9 or
/ii0 en.a.e in activities in the course o+ carr)in. on a
business +or the purpose o+ .ainin. or pro&ucin. )our
assessable income9
an& )ou en.a.e& in those activities 'hile )ou 'ere at the
secon& place.
/!0 Travel bet'een 2 places is not travel bet!een !or"places i+ one o+
the places )ou are travellin. bet'een is a place at 'hich )ou
resi&e.
/40 Travel bet'een 2 places is not travel bet!een !or"places i+, at the
time o+ )our travel to the secon& place
/a0 the arran.ement un&er 'hich )ou .aine& or pro&uce&
assessable income at the +irst place has cease&9 or
/b0 the
<
business in respect o+ 'hich )ou en.a.e& in activities at
the +irst place has cease&.
/50 @ou cannot &e&uct e1pen&iture un&er subsection /10 to the e1tent
that the e1pen&iture is capital, or o+ a capital nature.
25#110 ,apital e1pen&iture to terminate lease etc.
/10 @ou can &e&uct an amount +or capital e1pen&iture )ou incur to
terminate a lease or licence /inclu&in. an authorit), permit or
=uota0 that results in the termination o+ the lease or licence i+ the
e1pen&iture is incurre&
/a0 in the course o+
<
carr)in. on a
<
business9 or
/b0 in connection 'ith ceasin. to carr) on a business.
/20 The amount )ou can &e&uct is 20O o+ the e1pen&iture
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
/a0 +or the income )ear in 'hich the lease or licence is
terminate&9 an&
/b0 +or each o+ the ne1t 4 income )ears.
%1ceptions
/!0 @ou cannot &e&uct an) amount +or e1pen&iture )ou incur to
terminate a lease that, in accor&ance 'ith
<
accountin. stan&ar&s, or
statements o+ accountin. concepts ma&e b) the Australian
Accountin. 6tan&ar&s ?oar&, is classi+ie& as a +inance lease.
/40 -+ )ou incurre& the e1pen&iture un&er an
<
arran.ement an&
/a0 there is at least one other part) to the arran.ement 'ith
'hom )ou &i& not &eal at
<
armJs len.th9 an&
/b0 apart +rom this subsection, the amount o+ the e1pen&iture
'oul& be more than the
<
mar4et value o+ 'hat it 'as +or
/assumin. the termination &i& not occur an& 'as never
propose& to occur09
the amount o+ e1pen&iture )ou ta4e into account is that mar4et
value.
/50 @ou cannot &e&uct an) amount +or e1pen&iture )ou incur to
terminate a lease or licence i+
/a0 a+ter the termination, )ou or an
<
associate o+ )ours enters into
another lease or licence 'ith the same part) or an associate
o+ that part)9 an&
/b0 the other lease or licence is o+ the same 4in& as the ori.inal
one.
/60 @ou cannot &e&uct an) amount +or e1pen&iture )ou incur to
terminate a lease or licence to the e1tent that the e1pen&iture is +or
the .rantin. or receipt o+ another lease or licence in relation to the
asset that 'as the sub:ect o+ the ori.inal lease or licence.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
7ivision 26M6ome amounts )ou cannot &e&uct, or cannot
&e&uct in +ull
This 7ivision sets out some amounts that )ou cannot &e&uct, or
that )ou cannot &e&uct in +ull.
Table o+ sections
26#5 (enalties
26#10 2eave pa)ments
26#15 Eranchise +ees 'in&+all ta1
26#1" ,ommon'ealth places 'in&+all ta1
26#18 Init short+all char.eMclean ener.)
26#1$ 3ebatable bene+its
26#20 Assistance to stu&ents
26#22 (olitical contributions an& .i+ts
26#25 -nterest or ro)alt)
26#25A 6easonal 2abour Mobilit) (ro.ram
26#26 Non#share &istribution an& &ivi&en&s
26#!0 3elativeJs travel e1penses
26#!5 3e&ucin. &e&uctions +or amounts pai& to relate& entities
26#40 Maintainin. )our +amil)
26#45 3ecreational club e1penses
26#4" Non#business boatin. activities
26#50 %1penses +or a leisure +acilit)
26#52 ?ribes to +orei.n public o++icials
26#5! ?ribes to public o++icials
26#54 %1pen&iture relatin. to ille.al activities
26#55 2imit on &e&uctions
26#60 6uperannuation contributions surchar.e
26#65 Termination pa)ments surchar.e
26#68 2oss +rom &isposal o+ eli.ible venture capital investments
26#"0 2oss +rom &isposal o+ venture capital e=uit)
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
26#"4 %1cess concessional contributions char.e cannot be &e&ucte&
26#"5 %1cess non#concessional contributions ta1 cannot be &e&ucte&
26#80 Einancin. costs on loans to pa) superannuation contribution
26#85 ?orro'in. costs on loans to pa) li+e insurance premiums
26#$0 6uperannuation supervisor) lev)
26#$5 6uperannuation .uarantee char.e
26#100 National 7isabilit) -nsurance 6cheme e1pen&iture
26#100 7ivision 2$! ta1 cannot be &e&ucte&
26#100 %1pen&iture attributable to 'ater in+rastructure improvement pa)ments
26#5 (enalties
/10 @ou cannot &e&uct un&er this Act
/a0 an amount /ho'ever &escribe&0 pa)able, b) 'a) o+ penalt),
un&er an
<
Australian la' or a
<
+orei.n la'9 or
/b0 an amount or&ere& b) a court to be pai& on the conviction o+
an entit) +or an o++ence a.ainst an
<
Australian la' or a
<
+orei.n la'.
/20 This section &oes not appl) to an amount pa)able, b) 'a) o+
penalt), un&er 6ub&ivision 162#7 o+ the
<
56T Act.
Note 6ee para.raph 25#5/10/ca0 +or the &e&uctibilit) o+ penalties that arise
un&er 6ub&ivision 162#7 o+ the 56T Act.
26#10 2eave pa)ments
/10 @ou cannot &e&uct un&er this Act a loss or out.oin. +or lon.
service leave, annual leave, sic4 leave or other leave e1cept
/a0 an amount pai& in the income )ear to the in&ivi&ual to 'hom
the leave relates /or, i+ that in&ivi&ual has &ie&, to that
in&ivi&ualJs &epen&ant or
<
le.al personal representative09 or
/b0 an
<
accrue& leave trans+er pa)ment that is ma&e in the
income )ear.
/20 An accrued leave transfer payment is a pa)ment that an entit)
ma4es
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
/a0 in respect o+ an in&ivi&ualJs leave /some or all o+ 'hich
accrue& 'hile the entit) 'as re=uire& to ma4e pa)ments in
respect o+ the in&ivi&ualJs leave, or leave the in&ivi&ual
mi.ht ta4e09 an&
/b0 'hen the entit) is no lon.er re=uire& /or is about to stop
bein. re=uire&0 to ma4e pa)ments in respect o+ such leave9
an&
/c0 to another entit) 'hen the other entit) has be.un /or is about
to be.in0 to be re=uire& to ma4e pa)ments in respect o+ such
leave9 an&
/&0 un&er /or +or the purposes o+ +acilitatin. the provisions o+0 an
<
Australian la', or an a'ar&, or&er, &etermination or
in&ustrial a.reement un&er an
<
Australian la'.
-t &oes not matter 'hether the leave accrues to the in&ivi&ual as an
emplo)ee or +or some other reason.
%1ample @our emplo)ee .oes to a ne' emplo)er. @ou pa) the ne' emplo)er
S2,000 +or the emplo)eeJs unuse& lon. service leave because an
in&ustrial a.reement re=uires )ou to ma4e that pa)ment.
Note An accrue& leave trans+er pa)ment is inclu&e& in the assessable
income o+ the entit) to 'hich it is ma&e see section 15#5.
26#15 Eranchise +ees 'in&+all ta1
@ou cannot &e&uct un&er this Act an) ta1 that is impose& b) the
7ranchise 7ees >ind%a"" Tax 'Imposition) Act 1997.
26#1" ,ommon'ealth places 'in&+all ta1
@ou cannot &e&uct un&er this Act an) ta1 that is impose& b) the
Common+ea"th ("aces >ind%a"" Tax 'Imposition) Act 1998.
26#18 Init short+all char.eMclean ener.)
@ou cannot &e&uct un&er this Act unit short+all char.e /'ithin the
meanin. o+ the C"ean 9ner-y Act $0110.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
26#1$ 3ebatable bene+its
/10 @ou cannot &e&uct un&er this Act a loss or out.oin. to the e1tent
that the loss or out.oin. is incurre& in .ainin. or pro&ucin. a
rebatable bene+it /'ithin the meanin. o+ section 160AAA o+ the
/20 To the e1tent that )ou use propert) in .ainin. or pro&ucin. a
rebatable bene+it, )our use o+ the propert) is ta4en not to be +or the
<
purpose o+ pro&ucin. assessable income i+ subsection /10 'oul&
stop )ou &e&uctin. a loss or out.oin. i+ )ou incurre& it in the
income )ear in .ainin. or pro&ucin. the rebatable bene+it.
Note In&er some provisions o+ this Act, in or&er to &e&uct an amount +or
)our propert), )ou must have use& the propert) +or the purpose o+
26#20 Assistance to stu&ents
/ca0 a stu&ent contribution amount 'ithin the meanin. o+ the
:i-her 9d#cation .#pport Act $003 pai& to a hi.her
e&ucation provi&er /'ithin the meanin. o+ that Act09 or
/cb0 a pa)ment ma&e to re&uce a &ebt to the ,ommon'ealth
un&er ,hapter 4 o+ that Act9 or
/&0 a pa)ment ma&e to re&uce a &ebt to the ,ommon'ealth, or to
a participatin. corporation, un&er ,hapter 2? o+ the .ocia"
.ec#rity Act 1991 or (art 4A o+ the .t#dent Assistance Act
1973.
%1ception 'hen )ou provi&e a +rin.e bene+it
/20 6ubsection /10 &oes not stop )ou &e&uctin. e1pen&iture )ou incur
in
<
provi&in. a
<
+rin.e bene+it.
26#22 (olitical contributions an& .i+ts
@ou cannot &e&uct political contributions or .i+ts
/10 @ou cannot &e&uct un&er this Act /other than 6ub&ivision !0#7A0
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
/a0 a contribution /inclu&in. a membership +ee0 or .i+t to a
political part) that is re.istere& un&er (art U- o+ the
Common+ea"th 9"ectora" Act 1918 or un&er correspon&in.
6tate or Territor) le.islation9 or
/b0 a contribution or .i+t to an in&ivi&ual 'hen the in&ivi&ual is a
can&i&ate in an election +or members o+
/i0 an
<
Australian le.islature9 or
/ii0 a
<
local .overnin. bo&)9 or
/c0 a contribution or .i+t to an in&ivi&ual 'ho is a member o+
/i0 an Australian le.islature9 or
/ii0 a local .overnin. bo&).
%1ception +or emplo)ees an& o++ice hol&ers
/20 >o'ever, subsection /10 &oes not appl) to a loss or out.oin.
incurre& in .ainin. or pro&ucin. assessable income +rom 'hich an
amount is re=uire& to be 'ithhel& un&er section 12#!5 or 12#45 in
6che&ule 1 to the Taxation Administration Act 1953.
Note These provisions o+ the Taxation Administration Act 1953 re=uire
amounts to be 'ithhel& +rom income o+ emplo)ees an& o++ice hol&ers.
6tartin. an& stoppin. bein. a can&i&ate
/!0 Eor the purposes o+ this section, an in&ivi&ual
/a0 starts bein. a can&i&ate 'hen the in&ivi&ualJs intention to be
or to attempt to be a can&i&ate +or the election is publicl)
available9 an&
/b0 stops bein. a can&i&ate at the earlier o+
/i0 the time 'hen the result o+ the election is &eclare& or
other'ise publicl) announce& b) an entit) /an electoral
official0 authorise& un&er the relevant electoral
le.islation9 an&
/ii0 the time /i+ an)0 'hen the in&ivi&ualJs intention to no
lon.er be a can&i&ate +or the election is publicl)
available.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
6tartin. bein. a member
/40 An in&ivi&ual 'ho becomes a member as a result o+ an election
/inclu&in. an election that is later &eclare& voi&0 is ta4en to start
bein. a member 'hen the in&ivi&ualJs election as a member is
&eclare& or other'ise publicl) announce& b) an electoral o++icial.
26#25 -nterest or ro)alt)
/10 @ou cannot &e&uct un&er this Act interest /'ithin the meanin. o+
7ivision 11A o+ (art --- o+ the Income Tax Assessment Act 19360 or
a
<
ro)alt) i+
/a0 6ub&ivision 12#E in 6che&ule 1 to the Taxation
Administration Act 1953 re=uires )ou to 'ithhol& an amount
+rom the interest or ro)alt)9 an&
/b0 either
/i0 )ou +ail to 'ithhol& the amount9 or
/ii0 a+ter 'ithhol&in. the amount, )ou +ail to compl) 'ith
section 16#"0 in that 6che&ule in relation to that
amount.
/20 @ou cannot &e&uct un&er this Act interest /'ithin the meanin. o+
7ivision 11A o+ (art --- o+ the Income Tax Assessment Act 19360,
or a
<
ro)alt), that is in the +orm o+ a
<
non#cash bene+it i+
/a0 section 14#5 or 14#10 in 6che&ule 1 to the Taxation
Administration Act 1953 re=uires )ou to pa) an amount to the
,ommissioner be+ore provi&in. the bene+it, because o+
6ub&ivision 12#E in that 6che&ule9 an&
/b0 )ou +ail to pa) the amount as re=uire& b) that section.
/!0 -+
/a0 apart +rom subsection /10 or /20, )ou can &e&uct interest
/'ithin the meanin. o+ 7ivision 11A o+ (art --- o+ the
Income Tax Assessment Act 19360 or a
<
ro)alt) +or an income
)ear9 an&
/b0 the
<
'ithhol&in. ta1 pa)able +or the interest or the ro)alt) is
pai&9
)ou can &e&uct the interest or ro)alt) +or that income )ear.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
26#25A 6easonal 2abour Mobilit) (ro.ram
No &e&uction to e1tent amount not 'ithhel&
/10 @ou cannot &e&uct un&er this Act salar), 'a.es, commission,
bonuses or allo'ances +rom 'hich 6ub&ivision 12#E, in
6che&ule 1 to the Taxation Administration Act 1953 /about the
6easonal 2abour Mobilit) (ro.ram0 re=uires )ou to 'ithhol& an
amount, to the e1tent that
/a0 )ou +ail to 'ithhol& the amount9 or
/b0 a+ter 'ithhol&in. the amount, )ou +ail to compl) 'ith
section 16#"0 in that 6che&ule in relation to that amount.
Note 6ection 16#"0 in that 6che&ule re=uires )ou to pa) the amount to
the ,ommissioner.
7e&uction to e1tent amount not 'ithhel& but 'ithhol&in. ta1 pai&
/20 @ou can &e&uct, +or an income )ear, salar), 'a.es, commission,
bonuses or allo'ances to the e1tent that
/a0 )ou cannot &e&uct the salar), 'a.es, commission, bonuses or
allo'ances +or that income )ear onl) because o+
subsection /10 o+ this section9 an&
/b0 the
<
6easonal 2abour Mobilit) (ro.ram 'ithhol&in. ta1
pa)able +or the salar), 'a.es, commission, bonuses or
allo'ance is pai&.
26#26 Non#share &istributions an& &ivi&en&s
/10 A compan) cannot &e&uct un&er this Act
/a0 a
<
non#share &istribution9 or
/b0 a return that has accrue& on a
<
non#share e=uit) interest.
/20 A compan) cannot &e&uct a
<
&ivi&en& pai& on an
<
e=uit) interest in
the compan) as a
<
.eneral &e&uction un&er this Act.
26#!0 3elativeJs travel e1penses
/10 @ou cannot &e&uct un&er this Act a loss or out.oin. )ou incur,
inso+ar as it is attributable to )our
<
relativeJs travel, i+
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
/a0 )ou travelle& in the course o+ per+ormin. )our &uties as an
emplo)ee, or in the course o+ carr)in. on a
<
business +or the
purpose o+ .ainin. or pro&ucin. )our assessable income9 an&
/b0 )our relative accompanie& )ou 'hile )ou travelle&.
%1ception to subsection /10
/20 6ubsection /10 &oes not stop )ou &e&uctin. a loss or out.oin. i+
/a0 )our
<
relative, 'hile accompan)in. )ou, per+orme&
substantial &uties as )our emplo)erJs emplo)ee, or as )our
emplo)ee9 an&
/b0 it is reasonable to conclu&e that )our relative 'oul& still have
accompanie& )ou even i+ he or she ha& not ha& a personal
relationship 'ith )ou.
/!0 6ubsection /10 &oes not stop )ou &e&uctin. e1pen&iture )ou incur
in
<
provi&in. a
<
+rin.e bene+it.
This section also applies to in&ivi&uals 'ho are not emplo)ees
/40 -+ an in&ivi&ual is not an emplo)ee, but receives, or is entitle& to
receive,
<
'ithhol&in. pa)ments covere& b) subsection /60, this
section applies to the in&ivi&ual as i+
/a0 he or she 'ere an emplo)ee9 an&
/b0 the entit), 'ho pa)s /or is liable to pa)0
<
'ithhol&in.
pa)ments covere& b) subsection /60 that result in the
in&ivi&ual bein. in receipt o+, or entitle& to receive, such
pa)ments, 'ere the in&ivi&ualJs emplo)er9 an&
/c0 an) other in&ivi&ual 'ho receives /or is entitle& to receive0
<
'ithhol&in. pa)ments covere& b) subsection /60
/i0 that result in that other in&ivi&ual bein. in receipt o+, or
entitle& to receive, such pa)ments9 an&
/ii0 that the entit) pa)s /or is liable to pa)0 to that other
in&ivi&ual9
'ere an emplo)ee o+ the entit).
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
This section also applies to entities 'ho are not emplo)ers
/50 -+ an entit) is not an emplo)er, but pa)s /or is liable to pa)0
<
'ithhol&in. pa)ments covere& b) subsection /60, this section
applies to the entit) as i+
/a0 it 'ere an emplo)er9 an&
/b0 an in&ivi&ual to 'hom the entit) pa)s /or is liable to pa)0
such 'ithhol&in. pa)ments 'ere the entit)Js emplo)ee.
Aithhol&in. pa)ments covere&
/60 This subsection covers
/a0 a
<
'ithhol&in. pa)ment covere& b) an) o+ the provisions in
6che&ule 1 to the Taxation Administration Act 1953 liste& in
the table9 an&
/b0 a 'ithhol&in. pa)ment covere& b) section 12#4" in
6che&ule 1 to the Taxation Administration Act 1953 'here
/i0 the pa)ment is ma&e to a reli.ious practitioner b) a
reli.ious institution9 an&
/ii0 the activit), or series o+ activities, +or 'hich the
pa)ment is ma&e is &one b) the reli.ious practitioner as
a member o+ the reli.ious institution.
4it""oldin% pa.ments co$ered
Ite
m
(ro$ision /u!Bect matter
1 6ection 12#40 (a)ment to compan) &irector
2 6ection 12#45 (a)ment to o++ice hol&er
! 6ection 12#50 3eturn to 'or4 pa)ment
4 6ub&ivision 12#7 ?ene+it, trainin. an&
compensation pa)ments
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
26#!5 3e&ucin. &e&uctions +or amounts pai& to relate& entities
@ou can onl) &e&uct reasonable amounts pai& to relate& entities
/10 -+, un&er another provision o+ this Act, )ou can &e&uct an amount
+or a pa)ment )ou ma4e, or +or a liabilit) )ou incur, to a
<
relate&
entit), then )ou can onl) &e&uct so much o+ the amount as the
,ommissioner consi&ers reasonable.
Note This section has a special operation i+ the pa)ment is ma&e, or the
liabilit) is incurre&, b) a partnership in 'hich a private compan) is a
partner see section 65 /(a)ments to associate& persons an& relatives0
o+ the Income Tax Assessment Act 1936.
Meanin. o+ related entit.
/20 A related entity is an) o+ the +ollo'in.
/a0 )our
<
relative9 or
/b0 a partnership in 'hich )our relative is a partner.
/!0 -n the case o+ a partnership, a related entity is an) o+ the +ollo'in.
/a0 a
<
relative o+ a partner in the partnership9
/b0 an in&ivi&ual 'ho is or has been a &irector o+ a compan) that
is a partner in the partnership an& is a
<
private compan) +or
the income )ear9
/c0 an entit) that is or has been a sharehol&er in a compan) o+
that 4in&9
/&0 a
<
relative o+ an in&ivi&ual 'ho is or has been a &irector or
sharehol&er o+ a compan) o+ that 4in&9
/e0 a bene+iciar) o+ a trust i+ the trustee is a partner in the
partnership9
/+0 a
<
relative o+ a bene+iciar) o+ a trust i+ the trustee is a partner
in the partnership9
/.0 another partnership, i+ a partner in the other partnership is a
<
relative o+ a partner in the +irst partnership.
>o'ever, a partner in a partnership is not a related entity o+ the
partnership.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
-+ )ou canJt &e&uct, then relate& entit) &oesnJt inclu&e amount as
income
/40 To the e1tent that subsection /10 stops )ou &e&uctin. an amount,
the amount is neither assessable income, nor e1empt income, o+ the
<
relate& entit).
26#40 Maintainin. )our +amil)
@ou cannot &e&uct un&er this Act e1pen&iture )ou incur +or
maintainin.
/a0 )our
<
spouse /e1cept a spouse permanentl) livin. separatel)
an& apart +rom )ou09 or
/b0 )our
<
chil& 'ho is un&er 16 )ears.
%1ample A +armer cannot &e&uct an amount +or +oo& or lo&.in.s that the +armer
provi&es to his or her chil& 'ho is un&er 16 )ears +or the 'or4 the
chil& per+orms on the +arm.
26#45 3ecreational club e1penses
)ou incur it to obtain or maintain
/a0 membership o+ a
<
recreational club9 or
/b0 ri.hts to en:o) /other'ise than as a
<
member0 +acilities
provi&e& b) a
<
recreational club +or the use or bene+it o+ its
<
members9
'hether +or )oursel+ or someone else.
Meanin. o+ recreational clu!
/20 A recreational club is a compan) that 'as establishe& or is carrie&
on mainl) to provi&e +acilities, +or the use or bene+it o+ its
<
members, +or &rin4in., &inin.,
<
recreation or entertainment.
/!0 6ubsection /10 &oes not stop )ou &e&uctin. e1pen&iture )ou incur
in
<
provi&in. a
<
+rin.e bene+it.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
26#4" Non#business boatin. activities
*b:ect
/10 The ob:ect o+ this section is to improve the inte.rit) o+ the ta1ation
s)stem b) preventin. &e&uctions +rom boatin. activities that are
not carrie& on as a
<
business bein. o++set a.ainst other assessable
income.
3ule
/20 This Act applies to )ou as i+ so much o+ the amounts relatin. to
usin. or
<
hol&in. boats that )ou coul& other'ise &e&uct +or an
income )ear as e1cee&s )our assessable income +rom usin. or
hol&in. boats +or that )ear
/a0 'ere not &e&uctible +or that income )ear9 an&
/b0 'ere an amount /a &uarantined amount0 relatin. to usin. or
hol&in. boats that )ou can &e&uct +or the ne1t income )ear.
Note A =uarantine& amount ma) be re&uce& un&er subsection /50 /+or boat
capital .ains0, re&uce& un&er subsection /"0 /'here )ou &e&uct part o+
a =uarantine& amount un&er subsection /60 +or boat business pro+its0,
re&uce& un&er subsection /80 /about e1empt income0 or a++ecte& b)
subsection /100 /about ban4ruptc)0.
%1ample -an &oes not use his boat in a business. -n @ear 1, -an 'oul& be able to
claim S100,000 in &e&uctions +or the boat /but +or this subsection0,
inclu&in. interest, &epreciation an& runnin. costs. >e earns onl)
S40,000 o+ income +rom the boat. >e can onl) &e&uct S40,000. >e
carries the remainin. S60,000 +or'ar& to @ear 2 /the =uarantine&
amount0.
-n @ear 2, -an has S$5,000 o+ e1penses an& S!0,000 o+ income +or the
boat. >e can &e&uct S!0,000. The =uarantine& amount is no'
S125,000 the =uarantine& amount +rom @ear 1 plus the e1cess o+
e1penses over income +rom @ear 2.
-n @ear !, -an has S60,000 o+ e1penses an& S150,000 o+ income +rom
the boat. The e1penses +rom @ear ! plus the =uarantine& amount is
S185,000. There+ore, -an claims a &e&uction o+ S150,000 an& carries
+or'ar& S!5,000 to @ear 4.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
%1ception business use
/!0 The rule in subsection /20 &oes not appl) to amounts that are
attributable to one or more o+ the +ollo'in.
/a0
<
hol&in. a boat as )our
<
tra&in. stoc49
/b0 usin. a boat /or hol&in. it0 mainl) +or lettin. it on hire in the
or&inar) course o+ a
<
business that )ou
<
carr) on9
/c0 usin. a boat /or hol&in. it0 mainl) +or transportin. the public
or .oo&s +or pa)ment in the or&inar) course o+ a business
that )ou carr) on9
/&0 usin. a boat +or a purpose that is essential to the e++icient
con&uct o+ a business that )ou carr) on.
Note %ven i+ this e1ception applies to )ou, )ou ma) still have to =uarantine
losses un&er 7ivision !5 /&e+erral o+ losses +rom non#commercial
business activities0.
%1ception +rin.e bene+its
/40 The rule in subsection /20 &oes not appl) to so much o+ an amount
)ou incur in
<
provi&in. a
<
+rin.e bene+it.
Mo&i+ication i+ )ou have boat capital .ains
/50 @ou re&uce a =uarantine& amount )ou have +or an income )ear b)
so much o+ that amount as is applie& un&er section 118#80 to
re&uce a
<
capital .ain )ou have +or the )ear in relation to a boat.
@ou ma4e this re&uction be+ore )ou &e&uct an amount un&er
subsection /60.
7e&uction i+ )ou have boat business pro+its
/60 @ou can &e&uct all or part o+ )our remainin. =uarantine& amount
+or an income )ear i+ )our assessable income +or the )ear +rom
activities o+ a 4in& re+erre& to in subsection /!0 e1cee&s )our
&e&uctions +or the )ear relatin. to those activities. The amount )ou
can &e&uct is the lesser o+ that e1cess an& that remainin.
=uarantine& amount.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
/"0 @ou re&uce )our =uarantine& amount +or the )ear b) the amount
)ou &e&uct. @ou ma4e this re&uction be+ore a re&uction un&er
subsection /80.
Mo&i+ication i+ )ou have e1empt income
/80 @ou re&uce an) remainin. =uarantine& amount )ou have +or an
income )ear b) )our
<
net e1empt income +or that )ear /a+ter
<
utilisin. the net e1empt income un&er section !5#15 /about
non#commercial business activities0 or section !6#10 or !6#15
/about ta1 losses00.
Mo&i+ication i+ )ou become ban4rupt
/$0 The mo&i+ication in subsection /100 has e++ect i+
/a0 in an income )ear /the current year0 )ou become ban4rupt or
are release& +rom a &ebt b) the operation o+ an Act relatin. to
ban4ruptc)9 or
/b0 )ou became ban4rupt be+ore the current )ear an&
/i0 the ban4ruptc) is annulle& in the current )ear un&er
section "4 o+ the 8an,r#ptcy Act 1966 because )our
cre&itors have accepte& a proposal +or a composition or
scheme o+ arran.ement9 an&
/ii0 un&er the composition or scheme o+ arran.ement, )ou
have been, 'ill be or ma) be release& +rom some or all
o+ the &ebts +rom 'hich )ou 'oul& have been release&
i+ )ou ha& instea& been &ischar.e& +rom the ban4ruptc).
/100 This Act applies to )ou as i+ an) amount that
/a0 is a =uarantine& amount +or )ou +or the current )ear or 'as a
=uarantine& amount +or )ou +or an earlier )ear9 an&
/b0 has not been applie& un&er section 118#80 an& that )ou have
not )et &e&ucte&9
'ere not an amount relatin. to usin. or hol&in. boats that )ou can
&e&uct +or the current )ear or a later )ear.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
26#50 %1penses +or a leisure +acilit)
)ou incur it
/a0 to ac=uire o'nership o+ a
<
leisure +acilit)9 or
/b0 to retain o'nership o+ a leisure +acilit)9 or
/c0 to ac=uire ri.hts to use a leisure +acilit)9 or
/&0 to retain ri.hts to use a leisure +acilit)9 or
/e0 to use, operate, maintain or repair a leisure +acilit)9 or
/+0 in relation to an) obli.ation associate& 'ith )our o'nership
o+ a leisure +acilit)9 or
/.0 in relation to an) obli.ation associate& 'ith )our ri.hts to use
a leisure +acilit).
>o'ever, there are e1ceptions /see subsections /!0, /40 an& /800.
Ahat is a leisure &acilit.G
/20 A leisure facility is lan&, a buil&in., or part o+ a buil&in. or other
structure, that is use& /or hel& +or use0 +or holi&a)s or
<
recreation.
%1ceptionMleisure +acilities
/!0 6ubsection /10 &oes not stop )ou &e&uctin. a loss or out.oin. +or a
<
leisure +acilit) i+ at all times in the income )ear
/a0 )ou hol& the leisure +acilit) +or sale in the or&inar) course o+
)our business o+ sellin. leisure +acilities9 or
/b0 )ou use the leisure +acilit) /or hol& it +or use0 mainl) to
provi&e it
/i0 in the or&inar) course o+ )our
<
business o+ provi&in.
leisure +acilities +or pa)ment9 or
/ii0 to pro&uce )our assessable income in the nature o+ rents,
lease premiums, licence +ees or similar char.es9 or
/iii0 +or )our emplo)ees to use9 or
/iv0 +or the care o+ )our emplo)eesJ
<
chil&ren.
-n the case o+ a compan), subpara.raphs /b0/iii0 an& /iv0 &o not
appl) to emplo)ees 'ho are
<
members or &irectors o+ the compan).
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
%1ceptionMpart )ear use o+ leisure +acilities
/40 -+ )ou use a
<
leisure +acilit) /or hol& it0 as &escribe& in
subsection /!0 at all times &urin. part o+ the income )ear, then
subsection /10 &oes not stop )ou &e&uctin. so much o+ the loss or
out.oin. as is reasonable in the circumstances.
Anti#avoi&anceM'hen e1ceptions &o not appl)
/"0 A
<
leisure +acilit) is ta4en not to be use& /or hel&0 as &escribe& in
subsection /!0 i+
/a0 apart +rom this subsection, the leisure +acilit) 'oul& be use&
/or hel&0 in that 'a) because o+ a
<
scheme9 an&
/b0 in the ,ommissionerJs opinion, the scheme 'oul& not have
been entere& into or carrie& out i+ this section ha& not been
enacte&.
/80 6ubsection /10 &oes not stop )ou &e&uctin. e1pen&iture )ou incur
in
<
provi&in. a
<
+rin.e bene+it.
26#52 ?ribes to +orei.n public o++icials
/10 @ou cannot &e&uct un&er this Act a loss or out.oin. )ou incur that
is a
<
bribe to a +orei.n public o++icial.
/20 An amount is a bribe to a foreign public official to the e1tent that
/a0 )ou incur the amount in, or in connection 'ith
/i0 provi&in. a bene+it to another person9 or
/ii0 causin. a bene+it to be provi&e& to another person9 or
/iii0 o++erin. to provi&e, or promisin. to provi&e, a bene+it to
another person9 or
/iv0 causin. an o++er o+ the provision o+ a bene+it, or a
promise o+ the provision o+ a bene+it, to be ma&e to
another person9 an&
/b0 the bene+it is not le.itimatel) &ue to the other person /see
subsection /6009 an&
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
/c0 )ou incur the amount 'ith the intention o+ in+luencin. a
<
+orei.n public o++icial /'ho ma) or ma) not be the other
person0 in the e1ercise o+ the o++icialJs &uties as a +orei.n
public o++icial in or&er to
/i0 obtain or retain business9 or
/ii0 obtain or retain an a&vanta.e in the con&uct o+ business
that is not le.itimatel) &ue to )ou, or another person, as
the recipient, or inten&e& recipient, o+ the a&vanta.e in
the con&uct o+ business /see subsection /"00.
The bene+it ma) be an) a&vanta.e an& is not limite& to propert).
/2A0 Eor the purposes o+ subsection /20, &isre.ar& 'hether business, or a
business a&vanta.e, 'as actuall) obtaine& or retaine&.
(a)ments that 'ritten la' o+ +orei.n public o++icialJs countr)
re=uires or permits
/!0 An amount is not a bribe to a foreign public official i+, assumin.
the bene+it ha& been provi&e&, an& all relate& acts ha& been &one,
in the
<
+orei.n public o++icialJs countr), a 'ritten la' o+ that
countr) 'oul& have re=uire& or permitte& the provision o+ the
bene+it.
Eacilitation pa)ments
/40 An amount is not a bribe to a foreign public official i+
/a0 the value o+ the bene+it is o+ a minor nature9 an&
/b0 the amount is incurre& +or the sole or &ominant purpose o+
e1pe&itin. or securin. the per+ormance o+ a routine
.overnment action o+ a minor nature.
/50 Eor the purposes o+ this section, a routine government action is an
action o+ a
<
+orei.n public o++icial that
/a0 is or&inaril) an& commonl) per+orme& b) the o++icial9 an&
/b0 is covere& b) an) o+ the +ollo'in. subpara.raphs
/i0 .rantin. a permit, licence or other o++icial &ocument
that =uali+ies a person to &o business in a +orei.n
countr) or in a part o+ a +orei.n countr)9
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
/ii0 processin. .overnment papers such as a visa or 'or4
permit9
/iii0 provi&in. police protection or mail collection or
&eliver)9
/iv0 sche&ulin. inspections associate& 'ith contract
per+ormance or relate& to the transit o+ .oo&s9
/v0 provi&in. telecommunications services, po'er or 'ater9
/vi0 loa&in. an& unloa&in. car.o9
/vii0 protectin. perishable pro&ucts, or commo&ities, +rom
&eterioration9
/viii0 an) other action o+ a similar nature9 an&
/c0 &oes not involve a &ecision about
/i0 'hether to a'ar& ne' business9 or
/ii0 'hether to continue e1istin. business 'ith a particular
person9 or
/iii0 the terms o+ ne' business or e1istin. business9 an&
/&0 &oes not involve encoura.in. a &ecision about
/i0 'hether to a'ar& ne' business9 or
/ii0 'hether to continue e1istin. business 'ith a particular
person9 or
/iii0 the terms o+ ne' business or e1istin. business.
?ene+it not le.itimatel) &ue
/60 -n 'or4in. out i+ a bene+it is not le.itimatel) &ue to another person
in a particular situation, &isre.ar& the +ollo'in.
/a0 the +act that the bene+it ma) be, or be perceive& to be,
customar), necessar) or re=uire& in the situation9
/b0 the value o+ the bene+it9
/c0 an) o++icial tolerance o+ the bene+it.
A&vanta.e in the con&uct o+ business that is not le.itimatel) &ue
/"0 -n 'or4in. out i+ an a&vanta.e in the con&uct o+ business is not
le.itimatel) &ue in a particular situation, &isre.ar& the +ollo'in.
/a0 the +act that the a&vanta.e ma) be customar), or perceive& to
be customar), in the situation9
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
/b0 the value o+ the a&vanta.e9
/c0 an) o++icial tolerance o+ the a&vanta.e.
7uties o+ +orei.n public o++icial
/80 The &uties o+ a
<
+orei.n public o++icial are an) authorities, &uties,
+unctions or po'ers that
/a0 are con+erre& on the o++icial9 or
/b0 the o++icial hol&s himsel+ or hersel+ out as havin..
26#5! ?ribes to public o++icials
/10 @ou cannot &e&uct un&er this Act a loss or out.oin. )ou incur that
is a
<
bribe to a public o++icial.
/20 An amount is a bribe to a public official to the e1tent that
/a0 )ou incur the amount in, or in connection 'ith
/i0 provi&in. a bene+it to another person9 or
/ii0 causin. a bene+it to be provi&e& to another person9 or
/iii0 o++erin. to provi&e, or promisin. to provi&e, a bene+it to
another person9 or
/iv0 causin. an o++er o+ the provision o+ a bene+it, or a
promise o+ the provision o+ a bene+it, to be ma&e to
another person9 an&
/b0 the bene+it is not le.itimatel) &ue to the other person /see
subsection /!009 an&
/c0 )ou incur the amount 'ith the intention o+ in+luencin. a
<
public o++icial /'ho ma) or ma) not be the other person0 in
the e1ercise o+ the o++icialJs &uties as a public o++icial in
or&er to
/i0 obtain or retain business9 or
/ii0 obtain or retain an a&vanta.e in the con&uct o+ business
that is not le.itimatel) &ue to )ou, or another person, as
the recipient, or inten&e& recipient, o+ the a&vanta.e in
the con&uct o+ business /see subsection /400.
The bene+it ma) be an) a&vanta.e an& is not limite& to propert).
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
?ene+it not le.itimatel) &ue
/!0 -n 'or4in. out i+ a bene+it is not le.itimatel) &ue to another person
in a particular situation, &isre.ar& the +ollo'in.
/a0 the +act that the bene+it ma) be customar), or perceive& to be
customar), in the situation9
/b0 the value o+ the bene+it9
/c0 an) o++icial tolerance o+ the bene+it.
A&vanta.e in the con&uct o+ business that is not le.itimatel) &ue
/40 -n 'or4in. out i+ an a&vanta.e in the con&uct o+ business is not
le.itimatel) &ue in a particular situation, &isre.ar& the +ollo'in.
/a0 the +act that the a&vanta.e ma) be customar), or perceive& to
be customar), in the situation9
/b0 the value o+ the a&vanta.e9
/c0 an) o++icial tolerance o+ the a&vanta.e.
7uties o+ public o++icial
/50 The &uties o+ a
<
public o++icial are an) authorities, &uties, +unctions
or po'ers that
/a0 are con+erre& on the o++icial9 or
/b0 the o++icial hol&s himsel+ or hersel+ out as havin..
26#54 %1pen&iture relatin. to ille.al activities
that it 'as incurre& in the +urtherance o+, or &irectl) in relation to, a
ph)sical element o+ an o++ence a.ainst an
<
Australian la' o+ 'hich
)ou have been convicte& i+ the o++ence 'as, or coul& have been,
prosecute& on in&ictment.
/20 7espite section 1"0 o+ the Income Tax Assessment Act 1936, the
,ommissioner ma) amen& )our assessment at an) time 'ithin 4
)ears a+ter )ou are convicte& o+ the relevant o++ence +or the
purpose o+ .ivin. e++ect to subsection /10 o+ this section.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
26#55 2imit on &e&uctions
/10 There is a limit on the total o+ the amounts )ou can &e&uct +or the
income )ear un&er these provisions
/a0 section 25#50 /'hich is about pa)ments o+ pensions,
.ratuities or retirin. allo'ances0 o+ this Act9
/ba0 7ivision !0 /'hich is about &e&uctions +or .i+ts or
contributions0 o+ this Act9
/bb0 7ivision !1 /'hich is about &e&uctions +or conservation
covenants0 o+ this Act9
/&0 section 2$0#150 /'hich is about &e&uctions +or personal
superannuation contributions0.
7o not inclu&e in the total an amount that )ou coul& also &e&uct
un&er another provision o+ this Act, apart +rom section 8#10 /'hich
prevents &ouble &e&uctions0.
/20 The limit is 'or4e& out b) subtractin. +rom )our assessable
income all )our &e&uctions e1cept
/a0
<
ta1 losses9 an&
6ee 7ivision !6 /'hich is about ta1 losses o+ earlier income )ears0.
/c0 the amount )ou can &e&uct +or the income )ear un&er
section !$!#5 /'hich provi&es +or &e&uctions +or ma4in.
<
+arm mana.ement &eposits0.
26#60 6uperannuation contributions surchar.e
@ou cannot &e&uct un&er this Act
/a0 a superannuation contributions surchar.e 'ithin the meanin.
o+ the .#perann#ation Contri&#tions Tax 'Assessment and
Co""ection) Act 19979 or
/b0 a superannuation contributions surchar.e 'ithin the meanin.
o+ the .#perann#ation Contri&#tions Tax 'Mem&ers o%
Constit#tiona""y (rotected .#perann#ation 7#nds)
Assessment and Co""ection Act 1997.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
26#65 Termination pa)ments surchar.e
@ou cannot &e&uct un&er this Act a termination pa)ments
surchar.e 'ithin the meanin. o+ the Termination (ayments Tax
'Assessment and Co""ection) Act 1997.
26#68 2oss +rom &isposal o+ eli.ible venture capital investments
(artners in V,2(s an& %6V,2(s
/10 @ou cannot &e&uct un&er this Act )our share o+ a loss ma&e +rom
the &isposal or other realisation o+ an
<
eli.ible venture capital
investment i+
/a0 it is ma&e b) a
<
V,2(, or an
<
%6V,2(, that is
<
uncon&itionall) re.istere&9 an&
/b0 'ere that &isposal or other realisation to be a
<
&isposal o+ a
<
,5T asset, )our share o+ an)
<
capital .ain or
<
capital loss
'oul& be &isre.ar&e& un&er section 118#405 or 118#40".
(artners in AE*Es
/20 @ou cannot &e&uct un&er this Act )our share o+ a loss ma&e +rom
the &isposal or other realisation o+ an
<
eli.ible venture capital
investment i+
/a0 it is ma&e b)
/i0 an
<
AE*E that is
<
uncon&itionall) re.istere&9 or
/ii0 a
<
V,2(, or an
<
%6V,2(, that is uncon&itionall)
re.istere& an& in 'hich an AE*E that is
<
uncon&itionall) re.istere& is a partner9 an&
<
&isposal o+ a
<
,5T asset, )our share o+ an)
<
capital .ain or
<
capital loss
'oul& be &isre.ar&e& un&er section 118#410.
%li.ible venture capital investors
/!0 @ou cannot &e&uct un&er this Act a loss ma&e +rom the &isposal or
other realisation o+ an
<
eli.ible venture capital investment i+
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
/a0 )ou are an
<
eli.ible venture capital investor9 an&
<
&isposal o+ a
<
,5T asset, an)
<
capital .ain or
<
capital loss 'oul& be
&isre.ar&e& un&er section 118#415.
26#"0 2oss +rom &isposal o+ venture capital e=uit)
@ou cannot &e&uct un&er this Act a loss ma&e +rom the &isposal or
other realisation o+
<
venture capital e=uit) in a
<
resi&ent investment
vehicle i+
/a0 it is ma&e b) a
<
venture capital entit) or a
<
limite&
partnership re+erre& to in subsection 118#515/209 an&
/b0 i+ that &isposal or other realisation 'ere a
<
&isposal o+ a
<
,5T asset, an)
<
capital .ain or
<
capital loss 'oul& be
&isre.ar&e& un&er 6ub&ivision 118#5.
26#"4 %1cess concessional contributions char.e cannot be &e&ucte&
@ou cannot &e&uct un&er this Act an amount o+
<
e1cess
concessional contributions char.e that )ou pa).
26#"5 %1cess non#concessional contributions ta1 cannot be &e&ucte&
@ou cannot &e&uct un&er this Act an amount o+
<
e1cess
non#concessional contributions ta1 that )ou pa).
26#80 Einancin. costs on loans to pa) superannuation contribution
/10 @ou can onl) &e&uct un&er this Act a
<
+inancin. cost connecte&
'ith a contribution )ou ma4e to a
<
superannuation plan i+ )ou can
&e&uct the contribution un&er 6ub&ivision 2$0#?.
/20 A financing cost connecte& 'ith a contribution is e1pen&iture
incurre& to the e1tent that it relates to obtainin. +inance to ma4e
the contribution, inclu&in.
/a0 interest, an& pa)ments in the nature o+ interest9 an&
/b0 e1penses o+ borro'in..
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
26#85 ?orro'in. costs on loans to pa) li+e insurance premiums
/10 @ou can onl) &e&uct un&er this Act interest on, or other e1penses
associate& 'ith, mone) )ou borro' to pa) a premium +or a
<
li+e
insurance polic) i+
/a0 the
<
ris4 component o+ the premium receive& b) the insurer
is the entire amount o+ the premium9 an&
/b0 each amount the insurer is liable to pa) un&er the polic)
'oul& be inclu&e& in )our assessable income i+ it 'ere pai&.
/20 The ris" component o+ a premium +or a
<
li+e insurance polic)
means the amount o+ the premium 'or4e& out on the basis
speci+ie& in the re.ulations.
26#$0 6uperannuation supervisor) lev)
@ou cannot &e&uct un&er this Act so much o+ a lev) impose& b) the
.#perann#ation '.e"% Mana-ed .#perann#ation 7#nds)
.#per!isory e!y Imposition Act 1991 as represents the late
lo&.ment amount /'ithin the meanin. o+ section 6 o+ that Act0.
26#$5 6uperannuation .uarantee char.e
@ou cannot &e&uct un&er this Act a char.e impose& b) the
.#perann#ation @#arantee Char-e Act 199$.
26#100 National 7isabilit) -nsurance 6cheme e1pen&iture
A participant /'ithin the meanin. o+ the ;ationa" 4isa&i"ity
Ins#rance .cheme Act $0130 cannot &e&uct un&er this Act a loss or
out.oin. to the e1tent the loss or out.oin. is +un&e& /inclu&in.
+un&e& b) 'a) o+ reimbursement0 b) an
<
N7-6 amount the
participant
<
&erives.
26#100 7ivision 2$! ta1 cannot be &e&ucte&
@ou cannot &e&uct un&er this Act an) o+ the +ollo'in.
/a0 an amount o+
<
7ivision 2$! ta1 that )ou pa)9
/b0 an amount o+
<
&ebt account &ischar.e liabilit) that )ou pa).
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
26#100 %1pen&iture attributable to 'ater in+rastructure improvement
pa)ments
<
63AI-( e1pen&iture i+ the
matchin.
<
63AI-( pa)ment is, or is reasonabl) e1pecte& to be,
<
non#assessable non#e1empt income /'hether +or )ou or +or
another entit)0 un&er section 5$#65.
/20 'R(#I expenditure, in respect o+ a
<
63AI-( pro.ram, is
e1pen&iture that
/a0 )ou incur that satis+ies an obli.ation un&er an
<
arran.ement
un&er the pro.ram9 an&
/b0 is, or is reasonabl) e1pecte& to be, matche& b) a
<
63AI-(
pa)ment in respect o+ the pro.ram.
/!0 >o'ever, treat the e1pen&iture as i+ it ha& never been 'R(#I
expenditure i+ it is no lon.er reasonable to e1pect that the
e1pen&iture 'ill be matche& b) a
<
63AI-( pa)ment in respect o+
the pro.ram.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
7ivision 2"M%++ect o+ input ta1 cre&its etc. on &e&uctions
2"#A 5eneral
2"#? %++ect o+ input ta1 cre&its etc. on capital allo'ances
2"#1 Ahat this 7ivision is about
This 7ivision sets out the e++ect o+ the 56T in 'or4in. out
&e&uctions. 5enerall) spea4in., input ta1 cre&its, 56T an&
a&:ustments un&er the 56T Act are &isre.ar&e&.
6ub&ivision 2"#AM5eneral
Table o+ sections
2"#5 -nput ta1 cre&its an& &ecreasin. a&:ustments
2"#10 ,ertain increasin. a&:ustments
2"#15 56T pa)ments
2"#5 -nput ta1 cre&its an& &ecreasin. a&:ustments
@ou cannot &e&uct un&er this Act a loss or out.oin. )ou incur, to
the e1tent that the loss or out.oin. inclu&es an amount relatin. to
an
<
input ta1 cre&it to 'hich )ou are entitle& or a
<
&ecreasin.
a&:ustment that )ou have.
2"#10 ,ertain increasin. a&:ustments
/10 @ou can &e&uct an amount o+ an
<
increasin. a&:ustment that arises
un&er 7ivision 12$ o+ the
<
56T Act.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
/20 >o'ever, )ou cannot &e&uct the amount to the e1tent /i+ an)0 that
the a&:ustment arises +rom an increase in the e1tent to 'hich the
activit) .ivin. rise to the a&:ustment is o+ a private or &omestic
nature.
/!0 -+
/a0 )ou have an
<
increasin. a&:ustment un&er 7ivision 1!8 o+ the
<
56T Act in respect o+ an asset as a result o+ the cancellation
o+ )our re.istration un&er (art 2#5 o+ the 56T Act9 an&
/b0 imme&iatel) a+ter the cancellation, )ou hel& the asset +or the
purpose o+ .ainin. or pro&ucin. assessable income9
)ou can &e&uct the amount o+ the increasin. a&:ustment.
/40 >o'ever, )ou cannot &e&uct an amount un&er subsection /10 or /!0
to the e1tent that, because it becomes a component o+ a
<
net input
ta1 cre&it, a re&uction is ma&e un&er section 10!#!0 /re&uction o+
cost base etc. b) net input ta1 cre&its0.
2"#15 56T pa)ments
/10 @ou cannot &e&uct un&er this Act a loss or out.oin. consistin. o+ a
pa)ment un&er 7ivision !! o+ the
<
56T Act.
/20 This section &oes not appl) to the pa)ment
/a0 to the e1tent /i+ an)0 that the
<
net amount to 'hich the
pa)ment relates 'as increase& un&er section 21#5 o+ the
<
Aine Ta1 Act /'hich allo's +or such increases to ta4e
account o+ 'ine e=ualisation ta109 an&
/b0 to the e1tent /i+ an)0 that the
<
net amount 'as increase&
un&er section 1!#5 o+ the
<
2u1ur) ,ar Ta1 Act /'hich allo's
+or such increases to ta4e account o+ lu1ur) car ta109 an&
/c0 to the e1tent /i+ an)0 that the
<
net amount 'as increase&
un&er para.raph 1!#10/10/a0 o+ the 2u1ur) ,ar Ta1 Act
/'hich allo's +or such alterations to ta4e account o+
increasin. lu1ur) car ta1 a&:ustments un&er that Act0.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
/!0 This section &oes not appl) to the pa)ment o+
<
assesse& 56T
/un&er section !!#15 o+ the
<
56T Act0 on a
<
ta1able importation
that
/a0 'as not a
<
cre&itable importation9 or
/b0 'as
<
partl) cre&itable9
but onl) to the e1tent that that pa)ment o+ assesse& 56T e1cee&s
the
<
input ta1 cre&it /i+ an)0 to 'hich )ou are entitle& +or that
importation.
-n calculatin. an amount that )ou ma) be able to &e&uct
/a0 an element in the calculation that is an amount pai& or
pa)able is treate& as not inclu&in. an amount e=ual to an)
<
input ta1 cre&it +or an
<
ac=uisition relate& to the amount pai&
or pa)able, or an)
<
&ecreasin. a&:ustment relate& to that
amount9 an&
/b0 an element in the calculation that is an amount receive& or
receivable is treate& as not inclu&in. an amount e=ual to an)
<
56T pa)able on a
<
ta1able suppl) relate& to the amount
receive& or receivable, or an)
<
increasin. a&:ustment relate&
to that amount.
/10 A
<
member o+ a
<
56T .roup is to be treate&, +or the purposes o+
this 7ivision, as i+ 6ub&ivision 48#? o+ the
<
56T Act /other than
subsections 48#45/!0 an& /400 &i& not appl) to that member.
/20 A
<
participant in a
<
56T :oint venture is to be treate&, +or the
purposes o+ this 7ivision, as i+ 6ub&ivision 51#? o+ the
<
56T Act
&i& not appl) to that participant.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
6ections 2"#5, 2"#10, 2"#15 an& 2"#20 &o not appl) to assets, or to
e1pen&iture, +or 'hich )ou can &e&uct amounts un&er 7ivision 40
or !28.
Note 6ee instea& 6ub&ivision 2"#?.
6ub&ivision 2"#?M%++ect o+ input ta1 cre&its etc. on capital
allo'ances
Table o+ sections
2"#80 ,ost or openin. a&:ustable value o+ &epreciatin. assets re&uce& +or input
ta1 cre&its
2"#85 ,ost or openin. a&:ustable value o+ &epreciatin. assets re&uce& &ecreasin.
a&:ustments
2"#8" ,ertain &ecreasin. a&:ustments inclu&e& in assessable income
2"#$0 ,ost or openin. a&:ustable value o+ &epreciatin. assets increase&
2"#$2 ,ertain increasin. a&:ustments can be &e&ucte&
2"#$5 ?alancin. a&:ustment events
2"#100 (oolin.
2"#105 *ther 7ivision 40 e1pen&iture
2"#110 -nput ta1 cre&it etc. relatin. to 2 or more thin.s
2"#80 ,ost or openin. a&:ustable value o+ &epreciatin. assets re&uce&
+or input ta1 cre&its
/10 A
<
&epreciatin. assetJs
<
cost is re&uce& i+
/a0 an entit)Js ac=uisition or importation o+ the asset constitutes
a
<
cre&itable ac=uisition or
<
cre&itable importation9 an&
/b0 the entit) is or becomes entitle& to an
<
input ta1 cre&it +or the
ac=uisition or importation9 an&
/c0 the entit) can &e&uct amounts +or the asset un&er 7ivision 40
or !28.
The re&uction is the amount o+ the input ta1 cre&it.
/20 A
<
<
cost is also re&uce& i+
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
/a0 the entit) that
<
hol&s the asset incurs e1pen&iture that is
inclu&e& in the secon& element o+ the assetJs cost +or the
income )ear in 'hich the assetJs
<
start time occurs9 an&
<
<
<
cre&itable importation to 'hich the
e1pen&iture relates9 an&
/c0 the entit) can &e&uct amounts +or the asset un&er 7ivision 40
or !28.
/!0 >o'ever, subsections /10 an& /20 &o not appl) i+ the
<
cost o+ the
<
&epreciatin. asset is mo&i+ie& un&er 7ivision 40 to be its
<
mar4et
value.
/!A0 A
<
<
openin. a&:ustable value +or an income
)ear an& its
<
cost is re&uce& i+
a
<
<
<
input ta1 cre&it in an
income )ear /the credit year0 +or the ac=uisition or
importation an& the cre&it )ear occurs a+ter the income )ear
in 'hich the ac=uisition or importation occurre&9 an&
/c0 the income )ear is a+ter the one in 'hich the assetJs
<
start
time occurs9 an&
/&0 the entit) can &e&uct amounts +or the asset un&er 7ivision 40
or !28.
/40 A
<
<
openin. a&:ustable value +or an income
)ear an& its
<
cost is re&uce& i+
/a0 the entit) that
<
hol&s the asset incurs e1pen&iture that is
inclu&e& in the secon& element o+ the assetJs cost +or that
income )ear9 an&
/b0 that income )ear is a+ter the one in 'hich the assetJs
<
start
time occurs9 an&
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
/c0 the entit) is or becomes entitle& to an
<
<
<
cre&itable importation to 'hich the
e1pen&iture relates +or the income )ear in 'hich the
e1pen&iture 'as incurre&9 an&
/&0 the entit) can &e&uct amounts +or the asset un&er 7ivision 40
or !28.
/50 -+ the re&uction un&er subsection /20, /!A0 or /40 is more than
/a0 +or a subsection /20 caseMthe
<
<
cost9 or
/b0 +or a subsection /!A0 or /40 caseMthe &epreciatin. assetJs
<
openin. a&:ustable value9
the e1cess is inclu&e& in the entit)Js assessable income unless the
entit) is an
<
e1empt entit).
%1ception poolin.
/60 This section &oes not appl) to
/a0 a &epreciatin. asset allocate& to a lo'#value pool or a pool
un&er 7ivision !28 +or or in the
<
current )ear9 or
/b0
<
in#house so+t'are i+ e1pen&iture on the so+t'are is allocate&
to a so+t'are &evelopment pool +or the current )ear9 or
/c0 a pro:ect pool.
2"#85 ,ost or openin. a&:ustable value o+ &epreciatin. assets re&uce&
&ecreasin. a&:ustments
/10 This section applies to an entit) i+
/a0 the entit) can &e&uct amounts +or a
<
&epreciatin. asset un&er
7ivision 40 or !289 an&
/b0 the entit) has a
<
&ecreasin. a&:ustment in an income )ear that
relates &irectl) or in&irectl) to the asset.
/1A0 >o'ever, this section &oes not appl) to a
<
&ecreasin. a&:ustment
that arises un&er 7ivision 12$ or 1!2 o+ the
<
56T Act.
Note 6ee instea& section 2"#8".
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
/20 The assetJs
<
cost is re&uce& b) an amount e=ual to the
<
&ecreasin.
a&:ustment i+ the a&:ustment arises in the income )ear in 'hich the
assetJs
<
start time occurs.
/!0 The assetJs
<
openin. a&:ustable value +or an income )ear an& its
<
cost is re&uce& b) an amount e=ual to the
<
&ecreasin. a&:ustment
i+ the a&:ustment arises in that )ear an& that )ear is a+ter the one in
'hich the assetJs
<
start time occurs.
/40 -+ the re&uction un&er subsection /20 or /!0 is more than
/a0 +or a subsection /20 caseMthe
<
<
cost9 or
/b0 +or a subsection /!0 caseMthe &epreciatin. assetJs
<
openin.
a&:ustable value9
the e1cess is inclu&e& in the entit)Js assessable income unless the
entit) is an
<
e1empt entit).
%1ception poolin.
<
current )ear9 or
/b0
<
/c0 a pro:ect pool.
2"#8" ,ertain &ecreasin. a&:ustments inclu&e& in assessable income
<
/b0 the entit) has a
<
&ecreasin. a&:ustment that arises un&er
<
56T Act in an income )ear that
relates &irectl) or in&irectl) to the asset9 an&
/c0 section 2"#$5 &oes not appl) to the entit) in relation to the
asset.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
/20 The amount o+ the
<
&ecreasin. a&:ustment is inclu&e& in the
entit)Js assessable income +or the income )ear unless the entit) is
an
<
e1empt entit).
2"#$0 ,ost or openin. a&:ustable value o+ &epreciatin. assets increase&
<
/b0 the entit) has an
<
increasin. a&:ustment in an income )ear
that relates &irectl) or in&irectl) to the asset.
/1A0 >o'ever, this section &oes not appl) to an
<
increasin. a&:ustment
that arises un&er 7ivision 12$ or 1!2 o+ the
<
56T Act.
Note 6ee instea& section 2"#$2.
/20 The assetJs
<
cost is increase& b) an amount e=ual to the
<
increasin.
a&:ustment i+ the a&:ustment arises in the income )ear in 'hich the
assetJs
<
start time occurs.
/!0 The assetJs
<
openin. a&:ustable value +or an income )ear an& its
<
cost is increase& b) an amount e=ual to the
<
increasin. a&:ustment
i+ the a&:ustment arises in that )ear an& that )ear is a+ter the one in
'hich the assetJs
<
start time occurs.
%1ception poolin.
<
current )ear9 or
/b0
<
/c0 a pro:ect pool.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
$0$ Income Tax Assessment Act 1997
6ection !0#5
2"#$2 ,ertain increasin. a&:ustments can be &e&ucte&
<
/b0 the entit) has an
<
increasin. a&:ustment that arises un&er
<
56T Act in an income )ear that
relates &irectl) or in&irectl) to the asset.
/20 The entit) can &e&uct the amount o+ the
<
increasin. a&:ustment +or
the income )ear.
/!0 >o'ever, the entit) cannot &e&uct the amount to the e1tent /i+ an)0
that the a&:ustment arises +rom an increase in the e1tent to 'hich
the activit) .ivin. rise to the a&:ustment is o+ a private or &omestic
nature.
2"#$5 ?alancin. a&:ustment events
/10 The
<
termination value o+ a
<
&epreciatin. asset is re&uce& i+ the
relevant
<
balancin. a&:ustment event is a
<
ta1able suppl). The
re&uction is an amount e=ual to the
<
56T pa)able on the suppl).
/20 >o'ever, subsection /10 &oes not appl) i+ the
<
termination value o+
the
<
&epreciatin. asset is mo&i+ie& un&er 7ivision 40 to be its
<
mar4et value.
/!0 The
<
<
&epreciatin. asset is increase& i+ the
entit) that
<
hel& the asset has a
<
&ecreasin. a&:ustment that relates
&irectl) or in&irectl) to that
<
ta1able suppl) in the income )ear in
'hich the
<
balancin. a&:ustment event occurre&. The increase is
the amount o+ the &ecreasin. a&:ustment.
/40 The
<
<
&epreciatin. asset is &ecrease& i+ the
entit) that
<
hel& the asset has an
<
increasin. a&:ustment that relates
<
ta1able suppl) in the income )ear in
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
'hich the
<
balancin. a&:ustment event occurre&. The &ecrease is
the amount o+ the increasin. a&:ustment.
/50 An amount is inclu&e& in the assessable income o+ the entit) that
<
hel& the asset i+ the entit) has a
<
&ecreasin. a&:ustment that relates
<
ta1able suppl) in a later income )ear.
The amount inclu&e& is the amount o+ the &ecreasin. a&:ustment.
/60 The entit) that
<
hel& the asset can &e&uct an amount i+ the entit)
has an
<
increasin. a&:ustment that relates &irectl) or in&irectl) to
that
<
ta1able suppl) in a later income )ear. The amount it can
&e&uct is the amount o+ the increasin. a&:ustment.
2"#100 (oolin.
/10 This section contains special rules +or e1pen&iture /the pooled
expenditure0 incurre& b) an entit)
/a0 on a
<
&epreciatin. asset allocate& to a lo'#value pool9 or
/b0 on a &epreciatin. asset allocate& to a pool un&er 7ivision !28
+or or in an income )ear9 or
/c0 on
<
in#house so+t'are i+ the e1pen&iture on the so+t'are is
allocate& to a so+t'are &evelopment pool9 an&
/&0 on
<
pro:ect amounts i+ the amounts are allocate& to a pro:ect
pool.
3e&uction to pools etc.
/20 There is a re&uction un&er subsection /!0 or /50 i+
/a0 the poole& e1pen&iture relates &irectl) or in&irectl) to a
<
<
<
importation an& the cre&it )ear occurs a+ter the income )ear
in 'hich the ac=uisition or importation occurre&.
/2A0 There is a re&uction un&er subsection /40 i+
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
/a0 the poole& e1pen&iture relates &irectl) or in&irectl) to a
<
<
<
importation.
3e&uce& cost o+ assets allocate& to a pool
/2?0 A
<
<
cost is re&uce& i+
a
<
<
<
ac=uisition or importation an& the income )ear in 'hich the
ac=uisition or importation occurre& is the same as the one in
'hich the input ta1 cre&it arose9 an&
/c0 the asset is allocate& to a lo'#value pool or a pool un&er
7ivision !28 +or or in that )ear.
2o'#value pools
/!0 Eor a lo'#value pool, the
<
closin. pool balance o+ the pool +or
/a0 i+ the cre&it )ear is later than the +irst income )ear +or 'hich
<
&epreciatin. assets 'ere allocate& to the poolMthe income
)ear be+ore the cre&it )ear9 or
/b0 i+ the cre&it )ear is the +irst income )ear +or 'hich
<
&epreciatin. assets 'ere allocate& to the poolMthe cre&it
)ear9
is re&uce& b) an amount e=ual to the input ta1 cre&it.
6o+t'are &evelopment pools an& pro:ect pools
/40 Eor a so+t'are &evelopment pool or a pro:ect pool, the e1pen&iture
in the pool +or the cre&it )ear, or the
<
pool value +or the cre&it )ear,
is re&uce& b) an amount e=ual to the
<
input ta1 cre&it.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
6mall business pools
/50 Eor a pool un&er 7ivision !28, the
<
openin. pool balance o+ the
pool +or the cre&it )ear is re&uce& b) an amount e=ual to the input
ta1 cre&it.
No re&uction i+ mar4et value
/5A0 >o'ever, there is no re&uction to the
<
cost o+ a
<
&epreciatin. asset
i+ its cost is mo&i+ie& un&er 7ivision 40 to be its
<
mar4et value.
6econ& element o+ cost
/60 There is a re&uction un&er subsection /"0 i+
/a0 the entit) incurs e1pen&iture in an income )ear /also the
credit year0 that is inclu&e& in the secon& element o+ the
<
cost o+ a
<
&epreciatin. asset allocate& to a lo'#value pool or
a pool un&er 7ivision !28 +or or in the cre&it )ear9 an&
/b0 the entit) is or becomes entitle&, a+ter the cre&it )ear, to an
<
input ta1 cre&it +or the e1pen&iture.
/"0 An amount e=ual to the amount o+ the
<
input ta1 cre&it is applie& in
re&uction o+
/a0 +or a lo'#value pool
/i0 i+ the cre&it )ear is later than the +irst income )ear +or
'hich
<
&epreciatin. assets 'ere allocate& to the poolM
the
<
closin. pool balance o+ the pool +or the income
)ear be+ore the cre&it )ear9 or
/ii0 i+ the cre&it )ear is the +irst income )ear +or 'hich
<
&epreciatin. assets 'ere allocate& to the poolMthe
<
closin. pool balance o+ the pool +or the cre&it )ear9 or
/b0 +or a pool un&er 7ivision !28Mthe
<
openin. pool balance o+
the pool +or the cre&it )ear.
/"A0 There is a re&uction to an amount o+ e1pen&iture inclu&e& in the
secon& element o+ the
<
cost o+ a
<
&epreciatin. asset i+
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
/a0 the asset is allocate& to a lo'#value pool or a pool un&er
7ivision !28 +or or in the income )ear in 'hich the
e1pen&iture 'as incurre&9 an&
/b0 the entit) that incurre& the e1pen&iture is or becomes entitle&
to an
<
input ta1 cre&it +or the e1pen&iture9 an&
/c0 the entitlement arises in the income )ear in 'hich the
e1pen&iture 'as incurre&.
-ncreasin. a&:ustments
/80 There is an increase un&er subsection /$0 i+ the entit) has an
<
increasin. a&:ustment /e1cept one that arises un&er 7ivision 12$
or 1!2 o+ the
<
56T Act0 in an income )ear /the ad)ustment year0
that relates &irectl) or in&irectl) to a
<
<
cre&itable importation to 'hich the poole& e1pen&iture relates.
Note Eor an increasin. a&:ustment that arises un&er 7ivision 12$ or 1!2 o+
the 56T Act, see section 2"#$2.
/$0 An amount e=ual to the amount o+ that
<
increasin. a&:ustment is
a&&e& to
/i0 i+ the a&:ustment )ear is later than the +irst income )ear
+or 'hich
<
&epreciatin. assets 'ere allocate& to the pool
Mthe
<
)ear be+ore the a&:ustment )ear9 or
/ii0 i+ the a&:ustment )ear is the +irst income )ear +or 'hich
<
<
closin. pool balance o+ the pool +or the a&:ustment
)ear9 or
<
the pool +or the a&:ustment )ear9 or
/c0 +or
<
in#house so+t'areMthe amount o+ e1pen&iture allocate&
to the so+t'are &evelopment pool +or the a&:ustment )ear9 or
/&0 +or a pro:ect poolMthe
<
pool value +or the a&:ustment )ear.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
7ecreasin. a&:ustments
/100 There is a &ecrease un&er subsection /110 i+ the entit) has a
<
&ecreasin. a&:ustment /e1cept one that arises un&er 7ivision 12$
or 1!2 o+ the
<
56T Act0 in an income )ear /also the ad)ustment
year0 that relates &irectl) or in&irectl) to a
<
cre&itable ac=uisition
or
<
cre&itable importation to 'hich the poole& e1pen&iture relates.
Note Eor a &ecreasin. a&:ustment that arises un&er 7ivision 12$ or 1!2 o+
the 56T Act, see section 2"#8".
/110 An amount e=ual to the amount o+ the
<
&ecreasin. a&:ustment is
applie& in re&uction o+
/i0 i+ the a&:ustment )ear is later than the +irst income )ear
+or 'hich
<
&epreciatin. assets 'ere allocate& to the pool
Mthe
<
)ear be+ore the a&:ustment )ear9 or
/ii0 i+ the a&:ustment )ear is the +irst income )ear +or 'hich
<
<
closin. pool balance o+ the pool +or the a&:ustment
)ear9 or
<
the pool +or the a&:ustment )ear9 or
/c0 +or
<
in#house so+t'areMthe amount o+ e1pen&iture allocate&
to the so+t'are &evelopment pool +or the a&:ustment )ear9 or
/&0 +or a pro:ect poolMthe
<
pool value +or the a&:ustment )ear.
/120 -+ the amount available +or re&uction un&er subsection /110 is more
than the amount re+erre& to in para.raph /110/a0, /b0, /c0 or /&0
/'hichever is applicable0, the e1cess is inclu&e& in the entit)Js
assessable income unless the entit) is an
<
e1empt entit).
2"#105 *ther 7ivision 40 e1pen&iture
/10 This section applies to e1pen&iture +or 'hich an entit) can &e&uct
amounts un&er 7ivision 40 /but not un&er 6ub&ivision 40#? or
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
40#%, or 6ub&ivision 40#- to the e1tent that that 6ub&ivision relates
to pro:ect pools0.
/20 The amount o+ the e1pen&iture is re&uce& i+ the entit) is or
becomes entitle& to an
<
input ta1 cre&it +or a
<
cre&itable ac=uisition
or
<
cre&itable importation to 'hich the e1pen&iture &irectl) or
in&irectl) relates. The re&uction is the amount o+ the input ta1
cre&it that relates to that e1pen&iture.
/!0 -+ the entit) has a
<
&ecreasin. a&:ustment in an income )ear that
relates &irectl) or in&irectl) to the e1pen&iture, an amount e=ual to
the &ecreasin. a&:ustment is inclu&e& in the entit)Js assessable
income +or that income )ear.
/40 -+ the entit) has an
<
increasin. a&:ustment in an income )ear that
relates &irectl) or in&irectl) to the e1pen&iture, the entit) can
&e&uct an amount e=ual to the increasin. a&:ustment +or that
income )ear.
/50 -+ the entit) is a partnership an& partners in that partnership can
&e&uct amounts un&er 7ivision 40 because section 40#5"0 or
40#665 applies, an amount e=ual to the
<
input ta1 cre&it, the
<
&ecreasin. a&:ustment or the
<
increasin. a&:ustment is
apportione& to each o+ the partners as set out in
subsection 40#5"0/20 or 40#665/20.
/60 >o'ever, this section &oes not appl) to an
<
e1empt entit).
2"#110 -nput ta1 cre&it etc. relatin. to 2 or more thin.s
This 6ub&ivision applies to an
<
input ta1 cre&it, or an
<
increasin.
a&:ustment or
<
&ecreasin. a&:ustment, that relates &irectl) or
in&irectl) to 2 or more thin.s o+ 'hich at least one is a
<
&epreciatin. asset as i+ a reasonable proportion o+ the input ta1
cre&it or a&:ustment relate& &irectl) or in&irectl) to each o+ those
&epreciatin. assets an& each o+ those other thin.s.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
7ivision 28M,ar e1penses
28#A 7e&uctions +or car e1penses
28#? ,hoosin. 'hich metho& to use
28#, The Bcents per 4ilometreC metho&
28#7 The B12O o+ ori.inal valueC metho&
28#% The Bone#thir& o+ actual e1pensesC metho&
28#E The Blo. boo4C metho&
28#5 Neepin. a lo. boo4
28#> *&ometer recor&s +or a perio&
28#- 3etainin. the lo. boo4 an& o&ometer recor&s
28#8 6ituations 'here )ou cannot use, or &onJt nee& to use, one o+
the 4 metho&s
This 7ivision sets out the rules +or 'or4in. out &e&uctions +or
car e1penses i+ )ou o'n or lease a car or hire a car un&er a hire
purchase a.reement.
Table o+ sections
28#5 Map o+ this 7ivision
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
28#5 Map o+ this 7ivision
6ub&ivisions 28#5,
28#> an& 28#-
The 4 metho&s o+
calculatin. car e1penses
,hoosin. 'hich
metho& to use
Bcents per 4mC
metho&
Bone#thir& o+
actual e1pensesC
metho&
B12O o+
ori.inal valueC
metho&
Blo. boo4C
metho&
2o. boo4 an&
o&ometer recor&s
6ubstantiatin. e1penses
/see 6ub&ivision $00#,0 %1ceptions to the above
6ub&ivision 28#,
6ub&ivision 28#?
6ub&ivision 28#A
6ub&ivision 28#7 6ub&ivision 28#% 6ub&ivision 28#E
6ub&ivision 28#8
.ection $811$
contains the &asic
operati!e pro!ision2
Choosin- the &est method
is #p to yo#2 :ence it is
important to #nderstand
the methods and ho+
they di%%er2
The A"o- &oo,B method
is more comp"icated
&eca#se it in!o"!es
%#rther .#&di!isions
a&o#t "o- &oo,s and
odometer records2
The exceptions co!er
#n#s#a" cases +hich
+i"" not app"y to
most taxpayers2
6ub&ivision 28#AM7e&uctions +or car e1penses
Table o+ sections
28#10 Application o+ 7ivision 28
28#12 ,ar e1penses
28#1! Meanin. o+ car expense
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
28#10 Application o+ 7ivision 28
/10 This 7ivision applies to an in&ivi&ual.
/20 -t also applies to a partnership that inclu&es at least one in&ivi&ual,
as i+ the partnership 'ere an in&ivi&ual.
/!0 -t &oes not appl) to an) other entit).
28#12 ,ar e1penses
/10 -+ )ou o'ne& or lease& a
<
car, )ou can &e&uct +or the carJs
e1penses an amount or amounts 'or4e& out usin. one o+ 4
metho&s.
Note 1 Eor particular t)pes o+ cars ta4en on hire )ou cannot use one o+ the 4
metho&s see section 28#165.
Note 2 -n certain circumstances the lessee o+ a lu1ur) car is ta4en to be its
o'ner /see subsection 242#15/200.
Note ! -n certain circumstances /+or e1ample, un&er a hire purchase
a.reement0 the notional bu)er o+ propert) is ta4en to be its o'ner /see
subsection 240#20/200.
/20 @ou must use one o+ the 4 metho&s unless an e1ception applies. -+
)ou canJt use an) o+ the metho&s, )ou canJt &e&uct an)thin. +or the
<
car e1penses.
28#1! Meanin. o+ car expense
/10 A car expense is a loss or out.oin. to &o 'ith a
<
car.
/20 -n a&&ition, an) o+ the +ollo'in. is a car e1pense
/a0 a loss or out.oin. to &o 'ith operatin. a
<
car9
/b0 the &ecline in value o+ a car.
/!0 None o+ the +ollo'in. is a car e1pense
/a0 a loss or out.oin. incurre&, or a pa)ment ma&e, in respect o+
travel outsi&e Australia9
/b0 a ta1i +are or similar loss or out.oin..
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
6ub&ivision 28#?M,hoosin. 'hich metho& to use
5ui&e to 6ub&ivision 28#?
This 6ub&ivision sets out the rules about choosin. a metho& o+
calculatin. car e1pense &e&uctions.
Table o+ sections
28#15 ,hoosin. amon. the 4 metho&s
*perative provision
28#20 3ules .overnin. choice o+ metho&
28#15 ,hoosin. amon. the 4 metho&s
?elo' is a .raphic that .ives in+ormation about the 4 metho&s o+
calculatin. car e1pense &e&uctions.
The 4 metho&s .ive )ou the choice o+ 'hich metho& best suits
)our situation an& nee&s.
Eor instance, some metho&s 'ill involve more paper'or4 than
others, but coul& .ive )ou bi..er &e&uctions. There are also
eli.ibilit) re=uirements +or some metho&s, so )ou nee& to chec4
that )ou are eli.ible to use a particular metho&.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
" 1 2 % o f
o r i g i n a l
v a l u e "
m e t h o d
S p e c i a l
e l i g i b i l i t y
r u l e s
E s t a b l i s h
e x p e n s e
b a s e
C a l c u l a t e
d e d u c t i o n
D o yo u
h a v e t o
s u b s t a n t i a t e
t h e e x p e n s e s ?
N o n e
B u s i n e s s
k m s
t r a v e l l e d
M u l t i p l y
b y
X c e n t s
f o r e a c h
k m
N o
B u s i n e s s
u s e m u s t
e x c e e d
5 , 0 0 0 k m
O r i g i n a l
v a l u e
M u l t i p l y
b y
1 2 %
N o
B u s i n e s s u s e
m u s t
e x c e e d
5 , 0 0 0 k m
M u l t i p l y
b y
3 3 1 / 3 %
Y e s
C a r m u s t
M u l t i p l y
b y
B u s i n e s s
u s e
p e r c e n t a g e
Y e s
D o l l a r v a l u e o f
c a r e x p e n s e s e . g .
f u e l t yr e s s e r v i c i n g
" C e n t s
p e r
k m "
m e t h o d
" O n e - t h i r d
o f a c t u a l
e x p e n s e s "
m e t h o d
" L o g b o o k "
m e t h o d
h a v e b e e n
" h e l d "
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
*perative provision
28#20 3ules .overnin. choice o+ metho&
/10 @ou can choose onl) one metho& +or all the
<
car e1penses +or the
<
car +or the income )ear. ,hoosin. one metho& preclu&es an) other
metho&.
/20 >o'ever, )ou can chan.e )our choice +or the income )ear.
%1ample @ou choose the Blo. boo4C metho& an& &e&uct S1,000. *n au&it, the
,ommissioner +in&s that )our claim is too hi.h an& shoul& be re&uce&
to S500. @ou 'oul& have been able to &e&uct S"00 i+ )ou ha& chosen
the Bcents per 4ilometreC metho&. This rule lets )ou chan.e )our
choice an& &e&uct the S"00.
/!0 @ou can also choose &i++erent metho&s +or the same
<
car +or
&i++erent income )ears an& &i++erent metho&s +or &i++erent cars +or
the same )ear.
6ub&ivision 28#,MThe Bcents per 4ilometreC metho&
Table o+ sections
28#25 >o' to calculate )our &e&uction
28#!0 ,apital allo'ances
28#!5 6ubstantiation
/10 To calculate )our &e&uction usin. the Bcents per 4ilometreC
metho&, )ou multipl)
the number o+
<
business 4ilometres the
<
car travelle& in the
income )ear9
b)
a number o+ cents base& on the carJs en.ine capacit).
The number o+ cents can be +oun& in the re.ulations.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
/20 ?ut )ou can use this +ormula +or the +irst 5,000
<
business
4ilometres onl). -+ the
<
car travelle& more than 5,000 business
4ilometres, )ou must &iscar& the 4ilometres in e1cess o+ 5,000.
%1ample -+ the car travelle& 5,085 business 4ilometres, )ou coul& claim +or
5,000, an& 'oul& lose the e1tra 85.
/!0 *usiness "ilometres are 4ilometres the
<
car travelle& in the course
o+
/a0 pro&ucin. )our assessable income9 or
/b0 )our
<
@ou calculate the number o+ business 4ilometres b) ma4in. a
reasonable estimate.
28#!0 ,apital allo'ances
-+ a
<
balancin. a&:ustment event occurs +or the
<
car, )ou 'ill nee&
to re+er to the capital allo'ances rules in 7ivision 40 to +in& out
ho' usin. this metho& a++ects the operation o+ those rules. 6ee
section 40#!"0 /about balancin. a&:ustments +or some cars0.
28#!5 6ubstantiation
To use this metho&, )ou &o not nee& to substantiate the
<
car
e1penses +or the
<
car.
6ub&ivision 28#7MThe B12O o+ ori.inal valueC metho&
Table o+ sections
28#50 %li.ibilit)
28#55 ,apital allo'ances
28#60 6ubstantiation
/10 Isin. the B12O o+ ori.inal valueC metho&, )ou &e&uct 12O o+ the
cost o+ the
<
car 'hen )ou ac=uire& it, or 12O o+ its
<
mar4et value
'hen )ou +irst be.an to lease it.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
Note 1 The cost to a lessee o+ a lu1ur) car to 'hich 7ivision 242 applies is to
be 'or4e& out un&er section 242#20.
Note 2 The cost o+ a car to 'hich 7ivision 240 applies is to be 'or4e& out
un&er section 240#25.
/20 ?ut the most )ou can &e&uct usin. this metho& is 12O o+ the
<
car
limit +or the income )ear 'hen )ou +irst use& the
<
car +or an)
purpose /i+ )ou o'n it0 or 'hen )ou +irst be.an to lease it.
Note 6ection 40#2!0 &eals 'ith the car limit.
/!0 @our &e&uction is re&uce& i+ )ou &i& not o'n or lease the
<
car +or
the 'hole income )ear. @ou can onl) &e&uct the amount 'or4e&
out usin. the +ormula
251658240

The full year car deduction is the amount )ou coul& &e&uct i+ )ou
ha& o'ne& or lease& the
<
car +or the 'hole income )ear.
A car-less day is a &a) 'hen )ou &i& not o'n or lease the
<
car.
28#50 %li.ibilit)
/10 @ou can use this metho& onl) i+ the number o+
<
business 4ilometres
travelle& b) the
<
car in the income )ear 'as more than 5,000, or
'oul& have been i+ )ou ha& use& the car throu.hout the income
)ear.
/20 *usiness "ilometres are 4ilometres the
<
o+
/b0 )our
<
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
28#55 ,apital allo'ances
-+ a
<
balancin. a&:ustment event occurs +or the
<
car, )ou 'ill nee&
to re+er to the capital allo'ances rules in 7ivision 40 to +in& out
ho' usin. this metho& a++ects the operation o+ those rules. 6ee
section 40#!"0 /about balancin. a&:ustments +or some cars0.
To use this metho&, )ou &o not nee& to substantiate the
<
car
e1penses +or the
<
car.
6ub&ivision 28#%MThe Bone#thir& o+ actual e1pensesC metho&
Table o+ sections
28#"0 >o' to calculate )our &e&uction
28#"5 %li.ibilit)
28#"0 >o' to calculate )our &e&uction
/10 Isin. the Bone#thir& o+ actual e1pensesC metho&, )ou &e&uct
one#thir& o+ each
<
car

e1pense.
/20 The e1pense must =uali+) as a &e&uction un&er some provision o+
this Act outsi&e this 7ivision /or 'oul& =uali+) i+, throu.hout the
income )ear, )ou ha& use& the
<
car onl) in pro&ucin. )our
assessable income0. -+ onl) part o+ the e1pense 'oul& =uali+), )ou
&e&uct one#thir& o+ that part.
%1ample @ou borro' mone) to bu) a car. @ou ma4e repa)ments o+ principal
an& pa)ments o+ interest.
@ou cannot &e&uct the repa)ments o+ principal because the) are
capital e1penses.
The interest pa)ments 'oul& be &e&uctible in +ull i+, throu.hout the
income )ear, )ou ha& use& the car onl) in pro&ucin. )our assessable
income. Isin. the Bone thir& o+ actual e1pensesC metho&, )ou can
&e&uct one#thir& o+ the interest pa)ments.
To +in& out 'hether an e1pense =uali+ies as a &e&uction un&er this Act, see
7ivision 8 /7e&uctions0.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
28#"5 %li.ibilit)
/10 @ou can use this metho& onl) i+ the number o+
<
business 4ilometres
travelle& b) the
<
car in the income )ear 'as more than 5,000, or
'oul& have been i+ )ou ha& use& the car throu.hout the income
)ear.
<
o+
/b0 )our
<
To use this metho&, )ou must substantiate the e1penses un&er
6ub&ivision $00#,.
6ub&ivision 28#EMThe Blo. boo4C metho&
Table o+ sections
28#$0 >o' to calculate )our &e&uction
28#$5 %li.ibilit)
28#$0 >o' to calculate )our &e&uction
/10 To use the Blo. boo4C metho&, )ou multipl) the amount o+ each
<
car e1pense b) the
<
business use percenta.e.
The e1pense
/20 The e1pense must =uali+) as a &e&uction un&er some provision o+
this Act outsi&e this 7ivision /or 'oul& =uali+) i+, 'hile )ou
<
hel&
the
<
car, )ou ha& use& it onl) in pro&ucin. )our assessable
income0. -+ onl) part o+ the e1pense 'oul& =uali+), )ou multipl)
that part b) the
<
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
%1ample @ou borro' mone) to bu) a car. @ou ma4e repa)ments o+ principal
an& pa)ments o+ interest.
@ou cannot &e&uct the repa)ments o+ principal because the) are
capital e1penses.
The interest pa)ments 'oul& be &e&uctible in +ull i+, throu.hout the
income )ear, )ou ha& use& the car onl) in pro&ucin. )our assessable
income.
Isin. the Blo. boo4C metho&
D i+ )ou hel& the car +or the 'hole income )earMmultipl) the
interest pa)ments b) the business use percenta.e9
D i+ )ou hel& the car +or onl) 6 months o+ the income )earM
multipl) the interest pa)ments +or those 6 months b) the
To +in& out 'hether an e1pense =uali+ies as a &e&uction un&er this Act, see
7ivision 8 /7e&uctions0.
The percenta.e
/!0 The business use percentage is calculate& b) &ivi&in.
the number o+
<
business 4ilometres that the
<
car travelle&
in the perio& 'hen )ou
<
hel& it &urin. the income )ear9
b)
the total number o+ 4ilometres that the car travelle& in that
perio&9
an& e1pressin. the result as a percenta.e.
<
o+
/b0 )our
<
/50 @ou calculate the number o+ business 4ilometres b) ma4in. a
reasonable estimate. The estimate must ta4e into account all
relevant matters, inclu&in.
/a0 an) lo. boo4s, o&ometer recor&s or other recor&s )ou have9
an&
/b0 an) variations in the pattern o+ use o+ the
<
car9 an&
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
$$0 Income Tax Assessment Act 1997
6ection !0#5
/c0 an) chan.es in the number o+ cars )ou use& in the course o+
pro&ucin. )our assessable income.
/60 @ou hold a
<
car 'hile )ou o'n it, or it is lease& to )ou, +or use in
the course o+ pro&ucin. )our assessable income, even i+ it is also
use& +or some other purpose.
Note 1 -n certain circumstances the lessee o+ a lu1ur) car is ta4en to be its
o'ner /see subsection 242#15/200.
Note 2 -n certain circumstances the notional bu)er o+ propert) is ta4en to be
its o'ner /see subsection 240#20/200.
28#$5 %li.ibilit)
@ou can use this metho& onl) i+ )ou
<
hel& the
<
car +or some or all
o+ the income )ear.
/10 To use this metho&, )ou must substantiate the
<
car e1penses un&er
6ub&ivision $00#,.
/20 @ou must also 4eep a lo. boo4. 6ub&ivision 28#5 e1plains
ho' o+ten )ou nee& to 4eep a lo. boo49
ho' to 4eep a lo. boo4.
The lo. boo4 is relevant to estimatin. the number o+ business
4ilometres the
<
car travelle& in the perio& 'hen )ou
<
hel& it &urin.
the income )ear.
/!0 @ou must 4eep o&ometer recor&s +or the perio& 'hen )ou
<
hel& the
<
car &urin. the income )ear. 6ub&ivision 28#> tells )ou about
o&ometer recor&s, 'hich &ocument the total number o+ 4ilometres
the car travelle& in that perio&.
/40 @ou must recor& the +ollo'in. in+ormation, in 'ritin., be+ore )ou
lo&.e )our
<
income ta1 return
/a0 )our estimate o+ the number o+
<
business 4ilometres9 an&
/b0 the
<
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
Income Tax Assessment Act 1997 $$1
6ection !0#10
>o'ever, the ,ommissioner ma) allo' )ou to recor& the
in+ormation later.
/50 @ou must retain the lo. boo4 an& the o&ometer recor&s.
6ub&ivision 28#- has the rules about this.
6ub&ivision 28#5MNeepin. a lo. boo4
5ui&e to 6ub&ivision 28#5
This 6ub&ivision tells )ou ho' to 4eep a lo. boo4. A lo. boo4 is
relevant to estimatin. the number o+ business 4ilometres the car
travelle& in the perio& 'hen )ou hel& it &urin. the income )ear.
Table o+ sections
28#110 6teps +or 4eepin. a lo. boo4
28#115 -ncome )ears +or 'hich )ou nee& to 4eep a lo. boo4
28#120 ,hoosin. the 12 'ee4 perio& +or a lo. boo4
28#125 >o' to 4eep a lo. boo4
28#1!0 3eplacin. one car 'ith another
28#110 6teps +or 4eepin. a lo. boo4
There are ! steps )ou nee& to +ollo' in 4eepin. a lo. boo4
i&enti+) an income )ear +or 'hich to 4eep a lo. boo49
choose a perio& o+ at least 12 'ee4s +or the lo. boo4 to
cover9
recor& :ourne)s ma&e in the car &urin. the lo. boo4 perio&
in the course o+ pro&ucin. )our assessable income.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
$$$ Income Tax Assessment Act 1997
6ection !0#5
28#115 -ncome )ears +or 'hich )ou nee& to 4eep a lo. boo4
/10 @ou nee& to 4eep a lo. boo4 +or the +irst income )ear +or 'hich
)ou use this metho& +or the
<
car.
/20 >avin. 4ept a lo. boo4 +or one income )ear, )ou &onJt nee& to
4eep a ne' one +or the ne1t 4 or more income )ears unless
subsection /!0 or /40 re=uires it. -+ )ou havenJt 4ept a ne' lo. boo4
+or 4 income )ears in a ro', )ou must 4eep one +or the ne1t income
)ear.
%1ample -+ )ou 4eep a lo. boo4 in 1$$"#$8, )ou 'oul& nee& to 4eep the ne1t
one in 2002#200!, unless subsection /!0 or /40 re=uires one sooner.
/!0 @ou must 4eep a lo. boo4 +or an income )ear i+ the ,ommissioner
sen&s )ou a notice be+ore the )ear &irectin. )ou to 4eep a lo. boo4
+or the
<
car +or that )ear.
/40 @ou must 4eep a lo. boo4 +or an income )ear i+, &urin. that )ear,
)ou .et one or more a&&itional
<
cars +or 'hich )ou 'ant to use the
Blo. boo4C metho& +or that )ear.
/50 Ahen )ou replace one
<
car 'ith another, )ou mi.ht have a perio&
'hen )ou
<
hol& both the ne' car an& the ol& car, or a perio& 'hen
)ou no lon.er
<
hol& the ol& car but &o not )et hol& the ne' car. -n
both these cases, )ou are treate& +or the purposes o+ subsection /40
as i+ )ou hel& the one car continuousl).
/60 @ou ma) choose to 4eep a lo. boo4 +or an income )ear even i+ )ou
&onJt nee& to9 +or e1ample, because )ou 'ant to establish a hi.her
<
28#120 ,hoosin. the 12 'ee4 perio& +or a lo. boo4
/10 The lo. boo4 must cover a continuous perio& o+ at least 12 'ee4s
throu.hout 'hich )ou
<
hel& the
<
car. -+ )ou hol& the car +or less
than 12 'ee4s, the perio& must be the entire perio& +or 'hich )ou
hel& the car.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
/20 The perio& ma) overlap the start or en& o+ the income )ear, so lon.
as it inclu&es part o+ the )ear.
/!0 -+ )ou 'ant to use the Blo. boo4C metho& +or 2 or more
<
cars +or
the same income )ear, the lo. boo4s +or those cars must cover
perio&s that are concurrent.
28#125 >o' to 4eep a lo. boo4
/10 -t is in )our interests to recor& in the lo. boo4 an) :ourne) ma&e in
the
<
car &urin. the lo. boo4 perio& in the course o+ pro&ucin. )our
assessable income. -+ a :ourne) is not recor&e&, the lo. boo4 'ill
in&icate a lo'er
<
business use percenta.e than is actuall) the case.
/20 A :ourne) is recor&e& b) ma4in. in the lo. boo4 an entr)
speci+)in.
/a0 the &a) the :ourne) be.an an& the &a) it en&e&9
/b0 the
<
carJs o&ometer rea&in.s at the start an& en& o+ the
:ourne)9
/c0 ho' man) 4ilometres the car travelle& on the :ourne)9
/&0 'h) the :ourne) 'as ma&e.
The recor& must be ma&e at the en& o+ the :ourne) or as soon as
possible a+ter'ar&s.
/!0 -+ 2 or more :ourne)s in a ro' are ma&e in the
<
car on the same &a)
in the course o+ pro&ucin. )our assessable income, the) can be
recor&e& as a sin.le :ourne).
/40 The +ollo'in. must be entere& in the lo. boo4
/a0 'hen the lo. boo4 perio& be.ins an& en&s9
/b0 the
<
carJs o&ometer rea&in.s at the start an& the en& o+ the
perio&9
/c0 the total number o+ 4ilometres that the car travelle& &urin.
the perio&9
/&0 the number o+ 4ilometres that the car travelle&, in the course
o+ pro&ucin. )our assessable income, on :ourne)s recor&e&
in the lo. boo49
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
/e0 the number o+ 4ilometres re+erre& to in para.raph /&0,
e1presse& as a percenta.e o+ the total number re+erre& to in
para.raph /c0.
%ach o+ the entries must be ma&e at or as soon as possible a+ter the
start or en& o+ the perio&, as appropriate.
/50 %ach entr) in the lo. boo4 must be in %n.lish.
28#1!0 3eplacin. one car 'ith another
/10 Eor the purposes o+ usin. the Blo. boo4C metho&, )ou ma)
nominate one
<
car as havin. replace& another car 'ith e++ect +rom
a &a) speci+ie& in the nomination.
/20 A+ter the nomination ta4es e++ect, the replacement
<
car is treate& as
the ori.inal car, an& the ori.inal car is treate& as a &i++erent car.
This means that )ou &o not nee& to repeat +or the replacement car
the steps )ou have alrea&) ta4en +or the ori.inal car un&er this
6ub&ivision.
/!0 @ou must recor& the nomination in 'ritin. be+ore )ou lo&.e )our
<
income ta1 return +or the income )ear in 'hich the nomination
ta4es e++ect. >o'ever, the ,ommissioner ma) allo' )ou to &o it
later.
/40 @ou must retain the nomination &ocument until the en& o+ the
perio& +or 'hich )ou must retain the last lo. boo4 that )ou be.an
to 4eep +or the ori.inal
<
car be+ore the &a) o+ e++ect o+ the
nomination.
/50 6ection 28#150 /'hich is about retainin. lo. boo4s0 applies to the
nomination &ocument in the same 'a) as it applies to that last lo.
boo4.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
6ub&ivision 28#>M*&ometer recor&s +or a perio&
5ui&e to 6ub&ivision 28#>
28#1!5 Ahat this 6ub&ivision is about
This 6ub&ivision tells )ou ho' to 4eep o&ometer recor&s +or a
car &urin. a particular perio&. *&ometer recor&s &ocument the
total number o+ 4ilometres the car travelle& &urin. a particular
perio&.
Table o+ sections
*perative provision
28#140 >o' to 4eep o&ometer recor&s +or a car +or a perio&
*perative provision
28#140 >o' to 4eep o&ometer recor&s +or a car +or a perio&
/10 *&ometer recor&s +or a perio& are 4ept in the +orm o+ a &ocument
in 'hich the +ollo'in. are entere&
/a0 the
<
carJs o&ometer rea&in.s at the start an& the en& o+ the
perio&9
/b0 i+ there is a nomination un&er section 28#1!0 to replace the
car 'ith another
<
car 'ith e++ect +rom a &a) in that perio&M
the o&ometer rea&in.s, at the en& o+ that &a), o+ both cars
a++ecte& b) the nomination.
/20 %ach entr) un&er subsection /10 must be in %n.lish an& must be
ma&e at or as soon as possible a+ter the start or en& o+ the perio&,
or the en& o+ the speci+ie& &a), as appropriate.
/!0 The +ollo'in. must also be entere& in the &ocument
/a0 the
<
carJs ma4e, mo&el an& re.istration number /i+ an)09
/b0 i+ the car has an internal combustion en.ineMits en.ine
capacit) e1presse& in cubic centimetres9
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
/c0 i+ there is a nomination un&er section 28#1!0 to replace the
car 'ith another
<
carMthe correspon&in. &etails +or the other
car a++ecte& b) the nomination.
/40 %ach entr) un&er subsection /!0 must be ma&e in %n.lish an& must
be ma&e be+ore )ou lo&.e )our
<
income ta1 return.
/50 The ,ommissioner ma) allo' )ou to ma4e an entr) un&er this
section a+ter )ou lo&.e )our
<
income ta1 return.
6ub&ivision 28#-M3etainin. the lo. boo4 an& o&ometer recor&s
Table o+ sections
28#150 3etainin. the lo. boo4 +or the retention perio&
28#155 3etainin. o&ometer recor&s
28#150 3etainin. the lo. boo4 +or the retention perio&
/10 @ou must retain the lo. boo4
/a0 +irst, until the en& o+ the latest income )ear +or 'hich )ou
rel) on the lo. boo4 to support )our calculation o+ the
<
business use percenta.e +or the
<
car9 an&
/b0 then +or another 5 )ears.
The perio& +or 'hich )ou must retain the lo. boo4 is calle& the
retention period.
/20 The 5 )ears start on the &ue &a) +or lo&.in. )our
<
income ta1
return +or that latest income )ear. -+ )ou lo&.e )our return later, the
5 )ears start on the &a) )ou lo&.e it.
/!0 >o'ever, the
<
retention perio& is e1ten&e& i+, 'hen the 5 )ears
en&, )ou are involve& in a &ispute 'ith the ,ommissioner that
relates to a &e&uction 'or4e& out usin. a
<
business use percenta.e
that )ou are rel)in. on the lo. boo4 to support. 6ee
section $00#1"0.
/40 -+ )ou &o not retain the lo. boo4 +or the
<
retention perio&, )ou
cannot &e&uct an) amount 'or4e& out usin. a
<
business use
percenta.e that )ou are rel)in. on the lo. boo4 to support. -+ )ou
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
have alrea&) &e&ucte& such an amount, )our assessment ma) be
amen&e& to &isallo' the &e&uction.
/50 Eor the purposes o+ the rules about retainin. an& pro&ucin. recor&s
o+ e1penses /see 6ub&ivision $00#50, the lo. boo4 is treate& as a
recor& o+ the
<
car e1penses +or each )ear +or 'hich )ou use a
<
business use percenta.e that )ou are rel)in. on the lo. boo4 to
support.
/60 -+ )ou lose the lo. boo4, there are rules that mi.ht help )ou in
section $00#205. Eor the purposes o+ the rules about relie+ +rom the
e++ects o+ +ailin. to substantiate /see 6ub&ivision $00#>0, not &oin.
somethin. re=uire& b) this 7ivision is treate& in the same 'a) as
not &oin. somethin. necessar) to +ollo' the rules in 7ivision $00.
28#155 3etainin. o&ometer recor&s
/10 @ou must retain )our o&ometer recor&s relatin. to the perio& 'hen
)ou
<
hel& the
<
car in the income )ear.
/20 -+ )ou 4eep a lo. boo4 +or the income )ear, )ou must retain the
o&ometer recor&s +or the same perio& as the lo. boo4, an&
section 28#150 applies to them in the same 'a) as it applies to the
lo. boo4.
/!0 -+ )ou &onJt 4eep a lo. boo4 +or the income )ear, )ou must retain
the o&ometer recor&s +or the same perio& as 'ritten evi&ence o+ a
<
car e1pense +or the
<
car +or the income )ear, an& section $00#"5
applies to them in the same 'a) as it applies to 'ritten evi&ence o+
an e1pense.
Note 6ection $00#"5 is about retainin. 'ritten evi&ence o+ a car e1pense.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
6ub&ivision 28#8M6ituations 'here )ou cannot use, or &onJt nee&
to use, one o+ the 4 metho&s
5ui&e to 6ub&ivision 28#8
This 6ub&ivision sets out the situations 'here )ou cannot use, or
&onJt nee& to use, an) o+ the 4 metho&s. These situations involve
either the nature o+ )our car or the 'a) )ou use it.
Table o+ sections
28#1"0 %1ception +or particular cars use& in particular 'a)s
28#1"5 Eurther miscellaneous e1ceptions
28#180 ,ar e1penses relate& to a'ar& transport pa)ments
28#185 Application o+ 6ub&ivision 28#8 to (A@% to recipients an& pa)ers o+ certain
/10 Eor particular t)pes o+
<
cars ta4en on hire )ou cannot use one o+
the 4 metho&s to calculate )our &e&uctions +or
<
car e1penses.
/20 -nstea&, )ou must calculate the &e&uctions un&er the normal
principles .overnin. &e&uctions, inclu&in. the rules +or
apportionin. a loss or out.oin. that is onl) partl) attributable to
/!0 This section applies to a ta1i ta4en on hire.
/40 -t also applies to a
<
motor vehicle ta4en on hire un&er an a.reement
o+ a 4in& or&inaril) entere& into b) people 'ho ta4e motor vehicles
on hire intermittentl), as the occasion re=uires, on an hourl), &ail),
'ee4l) or short term basis, e1cept i+ the motor vehicle
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
/a0 has been ta4en on hire un&er successive a.reements o+ a 4in&
that result in substantial continuit) o+ the motor vehicle bein.
ta4en on hire9 or
/b0 it is reasonable to e1pect that the motor vehicle 'ill be ta4en
on hire un&er successive a.reements o+ a 4in& that 'ill so
result.
28#1"0 %1ception +or particular cars use& in particular 'a)s
/10 Eor particular t)pes o+
<
cars use& in particular 'a)s )ou &onJt nee&
to use one o+ the 4 metho&s to calculate )our &e&uctions +or
<
car
e1penses.
/20 @ou may use one o+ the 4 metho&s, or )ou ma) instea& calculate
the &e&uctions un&er the normal principles .overnin. &e&uctions,
inclu&in. the rules +or apportionin. a loss or out.oin. that is onl)
partl) attributable to pro&ucin. assessable income.
/!0 This section applies i+, 'henever )ou use& the
<
car in the income
)ear
/a0 the car 'as covere& b) the &escription in column 2 o+ an item
in the table belo'9 an&
/b0 )ou use& the car as &escribe& in column ! o+ that item.
Ite
m
Column )
(articular car
Column 3
5xempt use
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
1.
The
<
car 'as
/a0 a panel van or
utilit) truc49 or
/b0 an) other roa&
vehicle &esi.ne& to
carr) a loa& o+ less
than 1 tonne /other
than a vehicle
&esi.ne&
principall) to carr)
passen.ers09 or
/c0 a ta1i.
@ou use& the car onl) in one or more o+ the
+ollo'in. 'a)s
/a0 in the course o+ pro&ucin. )our assessable
income9
/b0 to .o bet'een )our resi&ence an& a place
'here )ou use the car in the course o+
pro&ucin. )our assessable income9
/c0 b) provi&in. the car to someone else to &rive
bet'een his or her resi&ence an& a place
'here the car is use& in the course o+
pro&ucin. )our assessable income9
/&0 +or the purpose o+ travel that is inci&ental to
usin. the car in the course o+ pro&ucin. )our
assessable income9
/e0 +or )our o'n or someone elseJs private use
that 'as minor, in+re=uent an& irre.ular.
2.
The
<
car 'as part o+
the
<
tra&in. stoc4 o+ a
<
business o+ sellin.
cars that )ou carrie&
on.
@ou use& the car in the course o+ the business.
!.
The
<
car 'as an) t)pe
o+ car.
@ou let the car on lease or hire in the course o+ a
<
business o+ lettin. cars on lease or hire that )ou
carr) on.
4.
The
<
car 'as an) t)pe
o+ car.
As an emplo)er, )ou provi&e& the car +or the
e1clusive use o+ one or more o+ the +ollo'in.
/a0 )our emplo)ees9
/b0 their
<
relatives9
in circumstances 'here one or more o+ them 'as
entitle& to use the car +or private purposes.
Note This 6ub&ivision also applies to entities
that are not emplo)ers, but pa) /or are
liable to pa)0 'ithhol&in. pa)ments
covere& b) subsection 28#185/!0.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
28#1"5 Eurther miscellaneous e1ceptions
/10 This section lists some miscellaneous cases 'here )ou &onJt nee&
to use one o+ the 4 metho&s to calculate )our &e&uctions +or
<
car
e1penses.
/20 @ou may use one o+ the 4 metho&s, or )ou ma) instea& calculate
the &e&uctions un&er the normal principles .overnin. &e&uctions,
inclu&in. the rules +or apportionin. a loss or out.oin. that is onl)
partl) attributable to pro&ucin. assessable income.
/!0 The cases are as +ollo's
/a0 the
<
car 'as unre.istere& throu.hout the perio& 'hen )ou
<
hel& it &urin. the income )ear, an& &urin. that perio& )ou
use& it principall) in the course o+ pro&ucin. )our assessable
income9 or
/b0 at some time &urin. the income )ear the
<
car 'as part o+ the
<
tra&in. stoc4 o+ a
<
business o+ sellin. cars that )ou carrie&
on, an& )ou &i&nJt use the car at an) time &urin. that )ear9 or
/c0 the e1pense is to &o 'ith repairs to or other 'or4 on the
<
car,
an& )ou incurre& it in the course o+ a
<
business that )ou
carrie& on o+ &oin. repairs or other 'or4 on cars.
-n appl)in. para.raph /a0, the car is ta4en to be re.istere& in a
particular place 'hile it is la'+ul to &rive the car on a public roa&
there.
28#180 ,ar e1penses relate& to a'ar& transport pa)ments
/10 6ub&ivision $00#- /A'ar& transport pa)ments0 allo's certain
losses or out.oin.s to be &e&ucte& 'ithout .ettin. 'ritten
evi&ence. The losses or out.oin.s are
<
transport e1penses relate& to
an allo'ance or reimbursement pai& or pa)able to )ou b) )our
emplo)er un&er an
<
in&ustrial instrument that 'as in +orce on
2$ *ctober 1$86.
Note This 6ub&ivision also applies to entities that are not emplo)ers, but
pa) /or are liable to pa)0 'ithhol&in. pa)ments covere& b)
subsection 28#185/!0.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
/20 -+ that 6ub&ivision lets )ou &e&uct
<
car e1penses, or parts o+
<
car
e1penses, 'ithout .ettin. 'ritten evi&ence, )ou &onJt nee& to use
an) o+ the 4 metho&s to calculate )our &e&uctions +or those
e1penses or parts o+ e1penses.
/!0 >o'ever, )our use o+ the 4 metho&s +or other
<
car e1penses )ou
incur +or the
<
car +or the income )ear is a++ecte&, unless )ou elect
not to rel) on 6ub&ivision $00#-. 6ection $00#250 &eals 'ith this
matter.
28#185 Application o+ 6ub&ivision 28#8 to recipients an& pa)ers o+
certain 'ithhol&in. pa)ments
Application to recipients
/10 -+ an in&ivi&ual receives, or is entitle& to receive,
<
'ithhol&in.
pa)ments covere& b) subsection /!0, this 6ub&ivision applies to
him or her
/a0 in the same 'a) as it applies to an emplo)ee9 an&
/b0 as i+ an entit) /a notional employer0 that ma4es /or is liable
to ma4e0 such pa)ments to him or her 'ere his or her
emplo)er9 an&
/c0 as i+ an) other in&ivi&ual 'ho receives, or is entitle& to
receive, such pa)ments +rom a notional emplo)er 'ere also
an emplo)ee o+ the notional emplo)er.
Application to pa)ers
/20 This 7ivision applies to an entit) that ma4es, or is liable to ma4e,
<
'ithhol&in. pa)ments covere& b) subsection /!0
/a0 in the same 'a) as it applies to an emplo)er9 an&
/b0 as i+ an in&ivi&ual to 'hom the entit) ma4es /or is liable to
ma4e0 such pa)ments 'ere the entit)Js emplo)ee.
Aithhol&in. pa)ments covere&
<
'ithhol&in. pa)ment covere& b) an) o+
the provisions in 6che&ule 1 to the Taxation Administration Act
1953 liste& in the table.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
Ite
m
1 6ection 12#!5 (a)ment to emplo)ee
! 6ection 12#45 (a)ment to o++ice hol&er
!A 6ection 12#4"
(a)ment to
<
reli.ious practitioner
4 6ection 12#50 3eturn to 'or4 pa)ment
5 6ub&ivision 12#, (a)ments +or retirement or because o+ termination o+
emplo)ment
6 6ub&ivision 12#7 ?ene+it an& compensation pa)ments
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
7ivision !0M5i+ts or contributions
5ui&e to 7ivision !0
!0#A 7e&uctions +or .i+ts or contributions
!0#? Tables o+ recipients +or &e&uctible .i+ts
!0#?A %n&orsement o+ &e&uctible .i+t recipients
!0#, 3ules appl)in. to particular .i+ts o+ propert)
!0#,A A&ministrative re=uirements relatin. to A?Ns
!0#7A 7onations to political parties an& in&epen&ent can&i&ates an&
members
!0#7? 6prea&in. certain .i+t an& covenant &e&uctions over up to 5
income )ears
!0#% 3e.ister o+ environmental or.anisations
!0#%A 3e.ister o+ harm prevention charities
!0#E 3e.ister o+ cultural or.anisations
!0#5 -n&e1 to this 7ivision
!0#1 Ahat this 7ivision is about
This 7ivision sets out the rules +or 'or4in. out &e&uctions +or
certain .i+ts or contributions that )ou ma4e.
Table o+ sections
!0#5 >o' to +in& )our 'a) aroun& this 7ivision
!0#10 -n&e1
!0#5 >o' to +in& )our 'a) aroun& this 7ivision
/10 @ou shoul& start at 6ub&ivision !0#A unless )ou are ma4in. a
contribution or .i+t to a political part), in&epen&ent can&i&ate or
member.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
Note 6ub&ivision !0#7A &eals 'ith the &e&uctibilit) o+ contributions an&
.i+ts to political parties, in&epen&ent can&i&ates an& members.
/20 6ub&ivision !0#A contains a table o+ all the .i+ts an& contributions
that )ou can &e&uct. @ou nee& to loo4 at the table to see 'hether
the t)pe o+ .i+t or contribution )ou are ma4in. is covere& b) it.
/!0 -n some cases, the table sen&s )ou o++ to 6ub&ivision !0#?. -t has a
number o+ tables that list particular +un&s, authorities or institutions
that &e&uctible .i+ts can be ma&e to.
/40 -n other cases, the table sen&s )ou o++ to 6ub&ivision !0#,. -t
contains rules that appl) to particular .i+ts o+ propert).
/4AA0 6ub&ivision !0#?A provi&es +or the ,ommissioner to en&orse as a
&e&uctible .i+t recipient an entit) that is, or operates, a +un&,
authorit) or institution. The relevance o+ the 6ub&ivision to )ou is
that .enerall) )ou can &e&uct onl) a .i+t )ou ma4e to a recipient
that is en&orse& or name& in
/a0 this 7ivision9 or
/b0 re.ulations ma&e +or the purposes o+ this 7ivision.
Note The +act that .i+ts to a recipient re.istere& in the Australian ?usiness
3e.ister are &e&uctible 'ill be sho'n in the 3e.ister.
/4A?0 6ub&ivision !0#,A sets out a&ministrative rules 'hich &o not
&irectl) a++ect 'hether )ou can &e&uct a .i+t )ou ma4e. The rules
re=uire
/a0 a receipt issue& b) an entit) +or a .i+t to the entit) or to a
+un&, authorit) or institution operate& b) the entit) to sho'
the entit)Js A?N9 an&
/b0 the Australian ?usiness 3e.istrar to enter in the Australian
?usiness 3e.ister a statement in relation to an entit) entere&
in the 3e.ister i+
/i0 .i+ts to the entit) are &e&uctible9 or
/ii0 .i+ts to a +un&, authorit) or institution operate& b) the
entit) are &e&uctible.
/4?0 6ub&ivision !0#7? allo's )ou to sprea& &e&uctions +or certain
.i+ts an& covenants over up to 5 income )ears.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
/50 6ub&ivision !0#% re=uires the establishment o+ a re.ister o+
<
environmental or.anisations. 6ub&ivision !0#%A re=uires the
establishment o+ a re.ister o+
<
harm prevention charities.
6ub&ivision !0#E re=uires the establishment o+ a re.ister o+
<
cultural or.anisations. Their onl) relevance to )ou is that )ou can
&e&uct a .i+t that )ou ma4e to a +un& liste& on one o+ those
re.isters.
!0#10 -n&e1
There is an in&e1 to this 7ivision in 6ub&ivision !0#5.
6ub&ivision !0#AM7e&uctions +or .i+ts or contributions
Table o+ sections
!0#15 Table o+ .i+ts or contributions that )ou can &e&uct
!0#1" 3e=uirements +or certain recipients
!0#15 Table o+ .i+ts or contributions that )ou can &e&uct
/10 @ou can &e&uct a .i+t or contribution that )ou ma4e in the
situations set out in the +ollo'in. table. -t tells )ou
'ho the recipient o+ the .i+t or contribution can be9 an&
the t)pe o+ .i+t or contribution that )ou can ma4e9 an&
ho' much )ou can &e&uct +or the .i+t or contribution9 an&
an) special con&itions that appl).
/20 A testamentar) .i+t or contribution is not &e&uctible un&er this
section.
Note 6ub&ivision !0#7A &eals 'ith the &e&uctibilit) o+ contributions an&
.i+ts to political parties, in&epen&ent can&i&ates an& members.
+educti!le %i&ts or contri!utions
Cecipient T.pe o& %i&t or contri!ution 1o2 muc" .ou can deduct /pecial conditions
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
1A +un&, authorit) or
institution covere& b) an item
in an) o+ the tables in
6ub&ivision !0#?.
A .i+t o+
/a0 mone)9 or
/b0 propert) /inclu&in.
<
tra&in.
stoc40 that )ou purchase& &urin.
the 12 months be+ore ma4in. the
.i+t9 or
/c0 an item o+ )our tra&in. stoc4 i+
the .i+t is a &isposal o+ the
item outsi&e the or&inar)
course o+ )our
<
business9
an&
no election has been
ma&e, or is ma&e, in
relation to the item un&er
6ub&ivision !85#% /about
electin. to sprea& or &e+er
pro+it +rom the +orce&
&isposal or &eath o+
<
live
stoc409 or
/&0 propert) value& b) the
,ommissioner at more than
S5,0009 or
/a0 i+ the .i+t is mone)Mthe amount
)ou are .ivin.9 or
/b0 i+ the .i+t is propert) /e1cept
tra&in. stoc4 covere& b)
para.raph /c0, propert) covere& b)
para.raph /&0 or shares covere& b)
para.raph /e00Mthe lesser o+ the
mar4et value o+ the propert) on the
&a) )ou ma&e the .i+t an& the
amount )ou pai& +or the propert)9
or
/c0 i+ the .i+t is an item o+ )our tra&in.
stoc4
that )ou &ispose& o+ outsi&e
the or&inar) course o+ )our
business9 an&
+or 'hich no election has
been ma&e, or is ma&e, in
6ub&ivision !85#%9
the mar4et value o+ the item on the
&a) )ou ma&e the .i+t9 or
/a0
/aa0 the +un&, authorit) or
/b0
/c0
/&0
/e0
<
shares that )ou have ac=uire& in
a
<
liste& public compan) i+
the shares are liste& +or
=uotation in the o++icial
list o+ a stoc4 e1chan.e
that is liste& un&er the
hea&in. BAustraliaC in
re.ulations ma&e +or the
purposes o+ the &e+inition
o+
<
approve& stoc4
e1chan.e9 an&
the
<
mar4et value o+ the
shares on the &a) )ou
ma&e the .i+t is S5,000 or
less9 an&
)ou ac=uire the shares at
least 12 months be+ore
ma4in. the .i+t.
/&0 i+ the .i+t is propert) value& b) the
,ommissioner at more than S5,000
an& )ou &i& not purchase the
propert) &urin. the 12 months
be+ore ma4in. the .i+tMthe value
o+ the propert) as &etermine& b) the
,ommissioner9 or
/e0 i+ the .i+t is shares &escribe& in
para.raph /e0 o+ the previous
columnMthe mar4et value o+ the
shares on the &a) )ou ma&e the .i+t.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
2
An
<
ancillar) +un&
establishe& an& maintaine&
un&er a 'ill or instrument o+
trust solel) +or
/a0 the purpose o+ provi&in.
mone), propert) or
bene+its
to a +un&, authorit)
or institution .i+ts
to 'hich are
&e&uctible un&er
item 1 o+ this table9
an&
+or an) purposes
set out in the item
o+ the table in
6ub&ivision !0#?
that covers the
+un&, authorit) or
institution9 or
A .i+t o+
/a0 mone)9 or
/b0 propert) /inclu&in.
<
tra&in.
stoc40 that )ou purchase& &urin.
the 12 months be+ore ma4in. the
.i+t9 or
/c0 an item o+ )our tra&in. stoc4 i+
the .i+t is a &isposal o+ the
item outsi&e the or&inar)
course o+ )our
<
business9
an&
no election has been
ma&e, or is ma&e, in
6ub&ivision !85#% /about
electin. to sprea& or &e+er
pro+it +rom the +orce&
&isposal or &eath o+
<
live
stoc409 or
/&0 propert) value& b) the
S5,0009 or
/a0 i+ the .i+t is mone)Mthe amount
)ou are .ivin.9 or
/b0 i+ the .i+t is propert) /e1cept
tra&in. stoc4 covere& b)
para.raph /c0, propert) covere& b)
para.raph /&0 or shares covere& b)
para.raph /e00Mthe lesser o+ the
&a) )ou ma&e the .i+t an& the
amount )ou pai& +or the propert)9
or
/c0 i+ the .i+t is an item o+ )our tra&in.
stoc4
that )ou &ispose& o+ outsi&e
the or&inar) course o+ )our
business9 an&
+or 'hich no election has
been ma&e, or is ma&e, in
6ub&ivision !85#%9
the mar4et value o+ the item on the
&a) )ou ma&e the .i+t9 or
/a0
/b0
/c0
/&0
/b0 the establishment o+ such
a +un&, authorit) or
institution.
/e0
<
shares that )ou have ac=uire& in
a
<
o+
<
approve& stoc4
e1chan.e9 an&
the
<
mar4et value o+ the
ma&e the .i+t is S5,000 or
less9 an&
ma4in. the .i+t.
/&0 i+ the .i+t is propert) value& b) the
,ommissioner at more than S5,000
an& )ou &i& not purchase the
propert) &urin. the 12 months
be+ore ma4in. the .i+tMthe value
o+ the propert) as &etermine& b) the
,ommissioner9 or
/e0 i+ the .i+t is shares &escribe& in
para.raph /e0 o+ the previous
columnMthe mar4et value o+ the
shares on the &a) )ou ma&e the .i+t.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
4/a0 the Australiana Eun&9 or
/b0 a public librar) in
Australia9 or
/c0 a public museum in
Australia9 or
/&0 a public art .aller) in
Australia9 or
/e0 an institution in Australia
consistin. o+ a public
librar), a public museum
an& a public art .aller) or
an) 2 o+ them.
A .i+t o+ propert) /e1cept an estate
or interest in lan& or in a buil&in. or
part o+ a buil&in.0.
The .eneral rule is that )ou can &e&uct
the avera.e o+ the
<
56T inclusive
mar4et values /as re&uce& un&er
subsection /!0 i+ that subsection
applies0 speci+ie& in the 'ritten
valuations )ou .et +rom approve&
valuers.
6ub&ivision !0#, sets out
/a0 ho' a person becomes an approve&
valuer9 an&
/b0 the e1ceptions to the .eneral rule9
an&
/c0 the situations 'hen the amount )ou
can &e&uct is re&uce&.
-+ the propert) is :ointl) o'ne&, see
section !0#225 to 'or4 out ho' much
o+ the .i+t )ou can &e&uct.
/a0
/b0
/ba0 the institution must
/c0
5The ,ommon'ealth /+or the
purposes o+ Artban40.
A .i+t o+ propert) /e1cept an estate
or interest in lan& or in a buil&in. or
part o+ a buil&in.0.
the avera.e o+ the
<
56T inclusive
valuers.
valuer9 an&
an&
-+ the propert) is :ointl) o'ne&, see
/a0
/b0
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
6/a0 the National Trust o+
Australia /Ne' 6outh
Aales09 or
/b0 the National Trust o+
Australia /Victoria09 or
/c0 The National Trust o+
Queenslan&9 or
/&0 The National Trust o+
6outh Australia9 or
/e0 The National Trust o+
Australia /A.A.09 or
/+0 the National Trust o+
Australia /Tasmania09 or
/.0 The National Trust o+
Australia /Northern
Territor)09 or
/h0 the National Trust o+
Australia /A.,.T.09 or
/i0 the Australian ,ouncil o+
National Trusts.
A .i+t o+ a place inclu&e& in
/a0 the National >erita.e 2ist, or the
,ommon'ealth >erita.e 2ist,
un&er the 9n!ironment
(rotection and 8iodi!ersity
Conser!ation Act 19999 or
/b0 the 3e.ister o+ the National
%state un&er the A#stra"ian
:erita-e Co#nci" Act $003.
the avera.e o+ the
<
56T inclusive
valuers.
valuer9 an&
an&
-+ the place is :ointl) o'ne&, see
/a0
/b0
/c0
"
A
<
&e&uctible .i+t recipient
that is a +un&, authorit) or
institution covere& b) item 1
or 2 o+ this table.
A contribution o+
/a0 mone), i+ the amount is more
than S1509 or
/b0 propert) that )ou purchase&
&urin. the 12 months be+ore
ma4in. the contribution, i+ the
lesser o+
the
<
mar4et value o+ the
propert) on the &a) )ou
ma&e the contribution9
an&
the amount )ou pai& +or
the propert)9
is more than S1509 or
/c0 propert) value& b) the
S5,000, i+ )ou &i& not purchase
the propert) &urin. the 12
months be+ore ma4in. the
/a0 i+ the contribution is mone)Mthe
amount o+ the contribution, re&uce&
b) the
<
56T inclusive mar4et value,
on the &a) )ou ma&e the
contribution, o+ the ri.ht to atten&,
or participate in, the +un&#raisin.
event9 or
/b0 i+ the contribution is propert) that
)ou purchase& &urin. the 12
contributionMthe lesser o+
the mar4et value o+ the
propert) on the &a) )ou
ma&e the contribution9 an&
the amount )ou pai& +or the
propert)9
re&uce& b) the 56T inclusive
mar4et value, on the &a) )ou ma&e
the contribution, o+ the ri.ht to
atten&, or participate in, the
/a0
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
contribution9 or +un&#raisin. event9 or
/ca0
<
shares that )ou have ac=uire&
in a
<
o+
<
approve& stoc4
e1chan.e9 an&
the mar4et value o+ the
ma&e the contribution is
more than S150 an& less
than or e=ual to S5,0009
an&
ma4in. the contribution9
/c0 i+ the contribution is propert)
value& b) the ,ommissioner at
more than S5,000 an& )ou &i& not
purchase the propert) &urin. the 12
contributionMthe value o+ the
propert) as &etermine& b) the
,ommissioner, re&uce& b) the 56T
inclusive mar4et value, on the &a)
)ou ma&e the contribution, o+ the
ri.ht to atten&, or participate in, the
+un&#raisin. event9 or
/ca0 i+ the contribution is shares
&escribe& in para.raph /ca0 o+ the
previous columnMthe mar4et value
o+ the shares on the &a) )ou ma&e
the contribution, re&uce& b) the
56T inclusive mar4et value, on the
&a) )ou ma&e the contribution, o+
the ri.ht to atten&, or participate in,
the +un&#raisin. event.
/b0
'here
/&0 the contribution is not a .i+t9 an&
/e0 either
the contribution is ma&e in
return +or a ri.ht
permittin. )ou to atten&,
or participate in, a
particular
<
+un&#raisin.
event in Australia9 or
the contribution is ma&e in
return +or a ri.ht
permittin. an in&ivi&ual
/other than )ou0 to atten&,
or participate in, a
particular +un&#raisin.
event in Australia.
/c0
/ca0 i+ the contribution is
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#5
/&0
/e0
/+0
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#10
/.0
8
A
<
that is a +un&, authorit) or
institution covere& b) item 1
or 2 o+ this table.
A contribution o+ mone), i+
/a0 the amount is more than S1509
an&
/b0 the contribution is not a .i+t9 an&
/c0 )ou ma&e the contribution b)
'a) o+ consi&eration +or the
suppl) o+ .oo&s or services9 an&
The amount o+ the contribution,
re&uce& b) the 56T inclusive mar4et
value, on the &a) )ou ma&e the
contribution, o+ the .oo&s or services.
/a0
/&0 )ou ma&e the contribution
because )ou 'ere the success+ul
bi&&er at an auction that
'as a particular
<
+un&#raisin. event in
Australia9 or
'as hel& at a particular
+un&#raisin. event in
Australia9 an&
/e0 the amount o+ the contribution
e1cee&s the
<
56T inclusive
mar4et value, on the &a) )ou
ma&e the contribution, o+ the
.oo&s or services.
/b0
/c0
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
/!0 Eor the purposes o+ items 4, 5 an& 6 o+ the table in subsection /20,
the
<
56T inclusive mar4et values o+ the propert) or place in
=uestion are re&uce& b)
1
K11 i+ )ou 'oul& have been entitle& to an
<
input ta1 cre&it i+
/a0 )ou ha&
<
ac=uire& the propert) or place at the time )ou ma&e
the .i+t9 an&
/b0 )our ac=uisition ha& been +or a
<
cre&itable purpose.
/40 Eor the purposes o+ item " o+ the table in subsection /20, in
'or4in. out the
<
56T inclusive mar4et value o+ the ri.ht in
=uestion, &isre.ar& an)thin. that 'oul& prevent or restrict
conversion o+ the ri.ht to mone).
/50 Eor the purposes o+ item 8 o+ the table in subsection /20, in
'or4in. out the
<
56T inclusive mar4et value o+ the .oo&s or
services in =uestion, &isre.ar& an)thin. that 'oul& prevent or
restrict conversion o+ the .oo&s or services to mone).
!0#1" 3e=uirements +or certain recipients
/10 This section sets out re=uirements to be met +or )ou to be able to
&e&uct a .i+t )ou ma4e to a +un&, authorit) or institution &escribe&
in the column hea&e& B3ecipientC o+ item 1, 2 or 4 o+ the table in
section !0#15. >o'ever, this section &oes not appl) to
/a0 a +un&, authorit) or institution that is mentione& b) name in
an item o+ a table in 6ub&ivision !0#?9 or
/c0 the Australiana Eun&.
/20 The +un&, authorit) or institution must
/a0 be an entit) or
<
.overnment entit) that is en&orse& un&er
6ub&ivision !0#?A as a
<
&e&uctible .i+t recipient9 or
/b0 in the case o+ a +un&Meither
/i0 be o'ne& le.all) b) an entit) that is en&orse& un&er
<
&e&uctible .i+t recipient +or the
operation o+ the +un&9 or
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
/ii0 be un&er the control o+ one or more persons 'ho
constitute a
<
<
operation o+ the +un&9 or
/c0 in the case o+ an authorit) or institutionMbe part o+ an entit)
or
<
<
operation o+ the authorit) or institution.
%1ample A public +un& that is establishe& an& maintaine& +or constructin. a
buil&in. to be use& b) a 6tate school an& is controlle& b) the principal
o+ the school 'oul& be an e1ample o+ a +un& un&er the control o+ one
or more persons 'ho constitute a .overnment entit) that is en&orse&
as a &e&uctible .i+t recipient +or the operation o+ the +un&, i+ the school
'ere so en&orse&.
6ub&ivision !0#?MTables o+ recipients +or &e&uctible .i+ts
Table o+ sections
>ealth
!0#20 >ealth
%&ucation
!0#25 %&ucation
!0#!0 5i+ts that must be +or certain purposes
!0#!5 3ural schools hostel buil&in.s
!0#!" 6cholarship etc. +un&s
3esearch
!0#40 3esearch
Ael+are an& ri.hts
!0#45 Ael+are an& ri.hts
!0#45A Australian &isaster relie+ +un&sM&eclarations b) Minister
!0#46 Australian &isaster relie+ +un&sM&eclarations un&er 6tate an& Territor) la'
7e+ence
!0#50 7e+ence
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
%nvironment
!0#55 The environment
!0#60 5i+ts to a National (ar4s bo&) or conservation bo&) must satis+) certain
re=uirements
-n&ustr), tra&e an& &esi.n
!0#65 -n&ustr), tra&e an& &esi.n
The +amil)
!0#"0 The +amil)
!0#"5 Marria.e e&ucation or.anisations must be approve&
-nternational a++airs
!0#80 -nternational a++airs
!0#85 7evelopin. countr) relie+ +un&s
!0#86 7evelope& countr) &isaster relie+ +un&s
6ports an& recreation
!0#$0 6ports an& recreation
(hilanthropic trusts
!0#$5 (hilanthropic trusts
,ultural or.anisations
!0#100 ,ultural or.anisations
Eire an& emer.enc) services
!0#102 Eire an& emer.enc) services
*ther recipients
!0#105 *ther recipients
>ealth
!0#20 >ealth
/10 This table sets out .eneral cate.ories o+ health recipients.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
1ealt"-0eneral
Ite
m
:und, aut"orit. or
institution
/pecial conditions-&und,
aut"orit. or institution
/pecial
conditions-
%i&t
1.1.
1
a public hospital the public hospital must be
/a0 an
<
Australian .overnment
a.enc)9 or
/b0 a
<
re.istere& charit)
none
1.1.
2
a hospital carrie& on b)
a societ) or association
the societ) or association must be a
<
re.istere& charit)
none
1.1.
!
a public +un&
maintaine& +or
/a0 the purpose o+
provi&in. mone) +or
hospitals covere& b)
item 1.1.1 or 1.1.29
or
/b0 the establishment o+
such hospitals
/a0 the public +un& must have been
establishe& be+ore 2! *ctober
1$6!9 an&
/b0 the public +un& must
/i0 be re.istere& un&er the
A#stra"ian Charities and
;ot1%or1pro%its
Commission Act $01$9 or
/ii0 not be an
<
A,N, t)pe o+
entit)9 an&
/c0 the hospitals must satis+) the
special con&itions set out in
item 1.1.1 or 1.1.2 /as
applicable0
none
1.1.
4
a public authorit)
en.a.e& in research into
the causes, prevention
or cure o+ &isease in
human bein.s, animals
or plants
the public authorit) must be
/a0 an
<
a.enc)9 or
/b0 a
<
re.istere& charit)
the .i+t must
be ma&e +or
such research
1.1.
5
a public institution
en.a.e& solel) in
research into the causes,
prevention or cure o+
&isease in human
bein.s, animals or
plants
the public institution must be
/a0 an
<
a.enc)9 or
/b0 a
<
re.istere& charit)
none
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
1.1.
6
a
<
re.istere& health
promotion charit)
none none
1.1.
"
a public ambulance
service
the public ambulance service must
be
/a0 an
<
a.enc)9 or
/b0 a
<
re.istere& charit)
none
1.1.
8
a public +un&
establishe& an&
maintaine& +or the
purpose o+ provi&in.
mone) +or public
ambulance services
covere& b) item 1.1."
/a0 the public +un& must
/i0 be re.istere& un&er the
;ot1%or1pro%its
/ii0 not be an
<
A,N, t)pe o+
entit)9 an&
/b0 the public ambulance services
must satis+) the special
con&itions set out in item 1.1."
none
/20 This table sets out speci+ic health recipients.
1ealt"-/peci&ic
Item :und, aut"orit. or institution /pecial conditions
1.2.1 The 3o)al Australian an& Ne' Healan&
,olle.e o+ *bstetricians an&
5)naecolo.ists
none
1.2.4 The 3o)al Australian an& Ne' Healan&
,olle.e o+ 3a&iolo.ists
the .i+t must be ma&e +or
e&ucation or research in
me&ical 4no'le&.e or science
1.2.5 the Ne' 6outh Aales ,olle.e o+ Nursin. none
1.2.6 the 3o)al Australian an& Ne' Healan&
,olle.e o+ (s)chiatrists
none
1.2." the 3o)al Australian ,olle.e o+ 5eneral
(ractitioners
1.2.8 the 3o)al Australasian ,olle.e o+
(h)sicians
none
1.2.$ the 3o)al Australasian ,olle.e o+ 6ur.eons none
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
1.2.10 the 3o)al ,olle.e o+ (atholo.ists o+
Australasia
1.2.12 the 3o)al ,olle.e o+ Nursin., Australia none
1.2.1! the Australian an& Ne' Healan& ,olle.e o+
Anaesthetists
none
1.2.14 6outh,are >elicopter Eun& the .i+t must be ma&e a+ter
11 6eptember 2000
1.2.16 National ?reast ,ancer ,entre 5i+t Eun& the .i+t must be ma&e a+ter
24 6eptember 2001 an& be+ore
2 Au.ust 2011
1.2.18 The Australasian ,olle.e +or %mer.enc)
Me&icine
the .i+t must be ma&e a+ter
2 Eebruar) 200$
1.2.1$ ,ancer Australia the .i+t must be ma&e
/a0 a+ter 8 8une 20119 an&
/b0 +or improvin. outcomes
+or Australians a++ecte& b)
breast cancer
%&ucation
!0#25 %&ucation
/10 This table sets out .eneral cate.ories o+ e&ucation recipients.
5ducation-0eneral
Item :und, aut"orit. or
institution
/pecial
conditions-
%i&t
2.1.1 a public universit) the public universit) must be
/a0 an
<
Australian
.overnment a.enc)9 or
/b0 a
<
re.istere& charit)
none
2.1.2 a public +un& +or the
establishment o+ a public
universit)
/a0 the public +un& must be
/i0 an
<
Australian
.overnment
a.enc)9 or
none
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
/ii0 a
<
re.istere&
charit)9 an&
/b0 the public universit) must
satis+) the special
con&itions set out in
item 2.1.1
2.1.! an institution that is a
hi.her e&ucation provi&er
'ithin the meanin. o+ the
:i-her 9d#cation .#pport
Act $003
the institution must be
/a0 an
<
Australian
/b0 a
<
re.istere& charit)
none
2.1.4 a resi&ential e&ucational
institution a++iliate& un&er
statutor) provisions 'ith a
public universit)
/a0 the resi&ential e&ucational
institution must be a
<
re.istere& charit)9 an&
/b0 the public universit) must
satis+) the special
con&itions set out in
item 2.1.1
none
institution establishe& b)
the ,ommon'ealth
none none
institution that is a++iliate&
'ith an institution that is a
hi.her e&ucation provi&er
'ithin the meanin. o+ the
:i-her 9d#cation .#pport
Act $003
/a0 the resi&ential e&ucational
institution must be
/i0 an
<
Australian
.overnment
a.enc)9 or
/ii0 a
<
re.istere&
charit)9 an&
/b0 the hi.her e&ucation
provi&er must satis+) the
special con&itions set out
in item 2.1.!
none
2.1." an institution that the
<
%&ucation Minister has
&etermine& to be a
technical an& +urther
e&ucation institution un&er
the .t#dent Assistance Act
1973
/a0 an
<
Australian
/b0 a
<
re.istere& charit)
see
section !0#!0
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
2.1.8 a public +un& establishe&
an& maintaine& solel) +or
the purpose o+ provi&in.
reli.ious instruction in
.overnment schools in
Australia
the public +un& must
/a0 be re.istere& un&er the
;ot1%or1pro%its
/b0 not be an
<
A,N, t)pe o+
entit)
none
2.1.$ a public +un& establishe&
an& maintaine& b) a 3oman
,atholic arch&iocesan or
&iocesan authorit) solel)
+or the purpose o+
provi&in. reli.ious
instruction in .overnment
schools in Australia
;ot1%or1pro%its
/b0 not be an
<
A,N, t)pe o+
entit)
none
2.1.$
A
a public +un& establishe&
the purpose o+ provi&in.
e&ucation in ethics
/a0 in .overnment schools
in Australia9 an&
/b0 as an alternative to
reli.ious instruction, in
accor&ance 'ith
<
6tate
la' or
<
Territor) la'
the public +un& must be
/a0 a
<
re.istere& charit)9 or
/b0 operate& b) a re.istere&
charit)
none
2.1.1
0
provi&in. mone) +or the
ac=uisition, construction or
maintenance o+ a buil&in.
use&, or to be use&, as a
school or colle.e b)
/a0 a .overnment9 or
/b0 a public authorit)9 or
/c0 a societ) or association
'hich is carrie& on
other'ise than +or the
purposes o+ pro+it or
.ain to the in&ivi&ual
;ot1%or1pro%its
/b0 not be an
<
A,N, t)pe o+
entit)
none
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
Income Tax Assessment Act 1997 $5$
6ection !0#85
members o+ the societ)
or association
2.1.1
1
ac=uisition, construction or
maintenance o+ a rural
school hostel buil&in. to
'hich section !0#!5 applies
;ot1%or1pro%its
/b0 not be an
<
A,N, t)pe o+
entit)
none
2.1.1
2
a .overnment school that
/a0 provi&es special
e&ucation +or stu&ents
each o+ 'hom has a
&isabilit) that is
permanent or is li4el) to
be permanent9 an&
/b0 &oes not provi&e
e&ucation +or other
stu&ents
none none
2.1.1
!
a public +un& that is
establishe& an& maintaine&
solel) +or provi&in. mone)
+or scholarships, bursaries
or priFes to 'hich
section !0#!" applies
/a0 a
<
re.istere& charit)9 or
/b0 operate& b) a re.istere&
charit)
none
/20 This table sets out speci+ic e&ucation recipients.
5ducation-/peci&ic
2.2.1 The Aca&em) o+ the 6ocial 6ciences in Australia
-ncorporate&
none
2.2.2 the Australian Aca&em) o+ 6cience none
2.2.! the Australian Aca&em) o+ the >umanities +or the
A&vancement o+ 6cholarship in 2an.ua.e,
2iterature, >istor), (hilosoph) an& the Eine Arts
none
2.2.4 the Australian Aca&em) o+ Technolo.ical
6ciences an& %n.ineerin. 2imite&
none
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
2.2.5 Aurora %&ucation Eoun&ation 2imite& the .i+t must be ma&e
a+ter !0 8une 201!
2.2.6 the Australian an& Ne' Healan& Association +or
the A&vancement o+ 6cience
none
2.2." the Australian -relan& Eun& none
2.2.8 the 2i+e %&ucation ,entre none
2.2.$ a compan) that con&ucts li+e e&ucation pro.rams
un&er the auspices o+ the 2i+e %&ucation ,entre i+
the compan)
/a0 is not carrie& on +or the purposes o+ pro+it or
.ain to its in&ivi&ual members9 an&
/b0 is prohibite& b) its
<
constitution +rom ma4in.
an) &istribution o+ mone) or propert) to its
members
the .i+t must be +or the
con&uct o+ such
pro.rams
2.2.10 the ,ouncil +or ,hristian %&ucation in 6chools none
2.2.11 the ,ouncil +or 8e'ish %&ucation in 6chools none
2.2.1! the 2ionel Murph) Eoun&ation none
2.2.14 the Marcus *l&ham Earm Mana.ement ,olle.e see section !0#!0
2.2.16 the (oll) Earmer Eoun&ation /-nc0 none
2.2.1" The Australian ,ouncil o+ ,hristians an& 8e's the .i+t must be ma&e
a+ter 6 7ecember 1$$8
2.2.18 6ir Ailliam T)ree Eoun&ation the .i+t must be ma&e
a+ter 28 Eebruar) 1$$$
2.2.20 Australian Nu++iel& Earmin. 6cholars Association the .i+t must be ma&e
a+ter 16 April 2001
2.2.21 7)moc4s ,hil&renJs ,harities 2imite& the .i+t must be ma&e
a+ter 4 8anuar) 2001
2.2.22 Australian (rimar) (rincipals Association
%&ucation Eoun&ation
the .i+t must be ma&e
a+ter 1 *ctober 2001
2.2.2! ,ommon'ealth 6tu&) ,on+erences /Australia0
-ncorporate&
a+ter 1$ Eebruar) 2001
2.2.24 Mt %liFa 5ra&uate 6chool o+ ?usiness an&
5overnment 2imite&
a+ter 4 April 2000
2.2.25 Australian >uman 3i.hts %&ucation Eun& the .i+t must be ma&e
a+ter 24 6eptember 2001
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
2.2.26 Abori.inal %&ucation ,ouncil /N.6.A.0
-ncorporate&
a+ter 6 Ma) 2002
2.2.2" 5eneral 6ir 8ohn Monash Eoun&ation the .i+t must be ma&e
a+ter 16 8une 2002
2.2.28 Australian#American %&ucational Eoun&ation the .i+t must be ma&e
a+ter !0 April 200!
2.2.2$ The Australian 2iterac) an& Numerac)
Eoun&ation 2imite&
a+ter 11 *ctober 2002
2.2.!0 The ,onstitution %&ucation Eun& the .i+t must be ma&e
a+ter 20 8une 200!
2.2.!1 ,ountr) %&ucation Eoun&ation o+ Australia
2imite&
the .i+t must be ma&e on
or a+ter 20 Au.ust 200!
2.2.!2 ,lontar+ Eoun&ation the .i+t must be ma&e
a+ter !0 Au.ust 2004
2.2.!! -nternational 6pecialise& 64ills -nstitute
-ncorporate&
a+ter 11 Au.ust 2005
2.2.!4 @acha& Accelerate& 2earnin. (ro:ect 2imite& the .i+t must be ma&e
a+ter 2$ 8une 2005 an&
be+ore 1 8ul) 2015
2.2.!6 The 6pirit o+ Australia Eoun&ation the .i+t must be ma&e
a+ter 10 6eptember 200"
2.2.!" The 3o)al -nstitution o+ Australia -ncorporate& the .i+t must be ma&e
a+ter 16 April 200$
2.2.!8 *ne 2aptop per ,hil& Australia 2t& the .i+t must be ma&e
a+ter 26 Ma) 2010 an&
be+ore 1 8ul) 2016
2.2.!$ The ,harlie (er4ins 6cholarship Trust the .i+t must be ma&e
a+ter 1 Au.ust 2010
2.2.40 3oberta 6)4es -n&i.enous %&ucation Eoun&ation the .i+t must be ma&e
a+ter 1 Au.ust 2010
2.2.41 Teach +or Australia the .i+t must be ma&e
a+ter !1 7ecember 2012
2.2.42 The ,onversation Trust the .i+t must be ma&e
a+ter 21 November 2012
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
!0#!0 5i+ts that must be +or certain purposes
/10 @ou can &e&uct a .i+t that )ou ma4e to
/a0 a technical an& +urther e&ucation institution covere& b)
item 2.1." o+ the table in subsection !0#25/109 or
/b0 the Marcus *l&ham Earm Mana.ement ,olle.e9
onl) i+ the .i+t is +or
/c0 purposes o+ the institution, or o+ the ,olle.e, that have been
&eclare& b) the
<
%&ucation Minister to relate solel) to tertiar)
e&ucation9 or
/&0 the provision o+ +acilities +or the institution, or the ,olle.e, i+
the %&ucation Minister has &eclare& that he or she is satis+ie&
the +acilities are to be use& principall) +or such purposes.
/20 A &eclaration un&er subsection /10 must be in 'ritin., si.ne& b)
the Minister.
!0#!5 3ural schools hostel buil&in.s
/10 Eor the purposes o+ item 2.1.11 o+ the table in subsection !0#25/10,
a rural school hostel buil&in. is one to 'hich this section applies i+
it meets the con&itions in subsections /20, /!0 an& /40.
/20 The rural school hostel buil&in. must be use&, or .oin. to be use&,
principall) as resi&ential accommo&ation +or stu&ents
/a0 'hose usual place o+ resi&ence is in a rural area9 an&
/b0 'ho are un&erta4in. primar) or secon&ar) e&ucation, or
special e&ucation pro.rams +or chil&ren 'ith &isabilities, at a
school in the same area as the buil&in..
/!0 The costs o+ the school must be solel) or partl) +un&e& b) the
,ommon'ealth, a 6tate or a Territor).
/40 The resi&ential accommo&ation must be provi&e& b)
/a0 the ,ommon'ealth, a 6tate or a Territor)9 or
/b0 a public authorit)9 or
/c0 a compan) that
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
/i0 is not carrie& on +or the purposes o+ pro+it or .ain to its
in&ivi&ual members9 an&
/ii0 is prohibite& b) its
<
constitution +rom ma4in. an)
&istribution o+ mone) or propert) to its members.
!0#!" 6cholarship etc. +un&s
Eor the purposes o+ item 2.1.1! o+ the table in subsection !0#25/10,
a scholarship, bursar) or priFe is one to 'hich this section applies
i+
/a0 it ma) onl) be a'ar&e& to Australian citiFens, or permanent
resi&ents o+ Australia, 'ithin the meanin. o+ the A#stra"ian
Citi?enship Act $0079 an&
/b0 it is open to in&ivi&uals or .roups o+ in&ivi&uals throu.hout a
re.ion o+ at least 200,000 people, or throu.hout at least an
entire 6tate or Territor)9 an&
/c0 it promotes recipientsJ e&ucation in either or both o+ the
+ollo'in.
/i0
<
pre#school courses,
<
primar) courses,
<
secon&ar)
courses or
<
tertiar) courses9
/ii0 e&ucational institutions overseas, b) 'a) o+ stu&) o+ a
component o+ a course covere& b) subpara.raph /i09 an&
/&0 it is a'ar&e& on merit or +or reasons o+ e=uit).
3esearch
!0#40 3esearch
/10 This table sets out .eneral cate.ories o+ research recipients.
Cesearc"-0eneral
Ite
m
:und, aut"orit. or
institution
/pecial
conditions-
%i&t
!.1.
1
a universit), colle.e,
institute, association or
or.anisation 'hich is an
the approve& research
institute must
the .i+t must
be ma&e +or
purposes o+
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
approve& research institute
+or the purposes o+
section "!A /%1pen&iture on
scienti+ic research0 o+ the
Income Tax Assessment Act
1936
;ot1%or1pro%its
/b0 not be an
<
A,N, t)pe o+
entit)
scienti+ic
research in the
+iel& o+ natural
or applie&
science
/20 This table sets out speci+ic research recipients.
Cesearc"-/peci&ic
!.2.1 the ,entre +or -n&epen&ent 6tu&ies none
!.2.2 the -an ,lunies 3oss Memorial Eoun&ation none
!.2.4 The MenFies 3esearch ,entre (ublic Eun& the .i+t must be ma&e a+ter
2 April 1$$8
!.2.5 The 6ir %arl (a.e Memorial Trust the .i+t must be ma&e a+ter
6 Ma) 2001
!.2.6 3esearch Australia 2imite& the .i+t must be ma&e a+ter
26 8une 2001
!.2." The (a.e 3esearch ,entre 2imite& the .i+t must be ma&e a+ter
12 8anuar) 2005
!.2.8 The ,hi+le) 3esearch ,entre 2imite& the .i+t must be ma&e a+ter
1$ Ma) 2005
!.2.$ 7on ,hipp Eoun&ation 2t& the .i+t must be ma&e a+ter
26 8une 2006
!.2.10 2in.iari (olic) ,entre the .i+t must be ma&e a+ter
25 8ul) 2006
!.2.11 5rattan -nstitute the .i+t must be ma&e a+ter
4 March 200$ an& be+ore
5 March 2011
!.2.12 The 5reen -nstitute 2imite& the .i+t must be ma&e a+ter
2! 8une 200$
!.2.1! Inite& 6tates 6tu&ies ,entre the .i+t must be ma&e a+ter
26 8ul) 200$
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
Ael+are an& ri.hts
!0#45 Ael+are an& ri.hts
/10 This table sets out .eneral cate.ories o+ 'el+are an& ri.hts
recipients.
4el&are and ri%"ts-0eneral
Ite
m
:und, aut"orit. or
institution
/pecial conditions-
&und, aut"orit. or
institution
/pecial conditions-
%i&t
4.1.
1
a
<
re.istere& public
benevolent institution
none none
4.1.
2
a public +un& maintaine&
+or the purpose o+
provi&in. mone) +or
/a0
<
re.istere& public
benevolent institutions9
or
/b0 the establishment o+
re.istere& public
benevolent institutions
/a0 have been
establishe& be+ore
2! *ctober 1$6!9
an&
/b0 be
/i0 a
<
re.istere&
charit)9 or
/ii0 operate& b)
a re.istere&
charit)
none
4.1.
!
an& maintaine& +or the
purpose o+ relievin. the
necessitous circumstances
o+ one or more in&ivi&uals
'ho are in Australia
/a0 be an
<
Australian
.overnment
a.enc)9 or
/b0 be a
<
re.istere&
charit)9 or
/c0 not be an
<
A,N,
t)pe o+ entit)
none
4.1.
4
a public +un& that, 'hen the
.i+t is ma&e, is on the
re.ister o+
<
harm
prevention charities 4ept
un&er 6ub&ivision !0#%A
be a
<
re.istere&
charit)
a+ter !0 8une 200!
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
4.1.
5
a public +un& /inclu&in. a
public +un& establishe& an&
maintaine& b) a public
benevolent institution0 that
is establishe& an&
maintaine& solel) +or
relie+ /inclu&in. relie+ b)
'a) o+ assistance to
re#establish a communit)0
o+ people in Australia in
&istress as a result o+ a
&isaster to 'hich
subsection !0#45A/10 or
!0#46/10 applies
/a0 be
/i0 an
<
Australian
.overnment
a.enc)9 or
/ii0 a
<
re.istere&
charit)9 or
/b0 be operate& b)
/i0 an Australian
.overnment
a.enc)9 or
/ii0 a re.istere&
charit)
see
subsections !0#45A/40
an& !0#46/20
4.1.
6
an institution 'hose
principal activit) is one or
both o+ the +ollo'in.
/a0 provi&in. short#term
&irect care to animals
/but not onl) native
'il&li+e0 that have been
lost or mistreate& or are
'ithout o'ners9
/b0 rehabilitatin. orphane&,
sic4 or in:ure& animals
/but not onl) native
'il&li+e0 that have been
lost or mistreate& or are
'ithout o'ners
a
<
re.istere& charit)
none
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
4.1.
"
an institution that 'oul& be
a public benevolent
institution, but +or one or
both o+ the +ollo'in.
/a0 it also promotes the
prevention or the
control o+ &iseases in
human bein.s /but not
as a principal activit)09
/b0 it also promotes the
prevention or the
control o+
<
behaviour
that is harm+ul or
abusive to human
bein.s /but not as a
principal activit)0
a
<
re.istere& charit)
none
/20 This table sets out speci+ic 'el+are an& ri.hts recipients.
4el&are and ri%"ts-/peci&ic
4.2.1 Amnest) -nternational Australia none
4.2.2 the ,hil& Acci&ent (revention Eoun&ation o+
Australia
none
4.2.! the National Eoun&ation +or Australian Aomen
2imite&
none
4.2.4 the National 6a+et) ,ouncil o+ Australia 2imite& none
4.2.5 Inite& Aa) Australia the .i+t must be ma&e a+ter
25 April 201!
4.2.6 the 3o)al 6ociet) +or the (revention o+ ,ruelt)
to Animals Ne' 6outh Aales
none
4.2." the 3o)al 6ociet) +or the (revention o+ ,ruelt)
to Animals /Victoria0 -nc.
none
4.2.8 Australian Nei.hbourhoo& >ouses L ,entres
Association /AN>,A0 -nc.
!0 8une 201!
4.2.$ the 3o)al 6ociet) +or the (revention o+ ,ruelt)
to Animals /6outh Australia0 -ncorporate&
none
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
4.2.10 the 3o)al 6ociet) +or the (revention o+ ,ruelt)
to Animals Aestern Australia /-ncorporate&0
none
4.2.11 the 3.6.(.,.A. /Tasmania0 -ncorporate& none
4.2.12 the 6ociet) +or the (revention o+ ,ruelt) to
Animals /Northern Territor)0
none
4.2.1! the 3o)al 6ociet) +or the (revention o+ ,ruelt)
to Animals /A.,.T.0 -ncorporate&
none
4.2.14 the 3.6.(.,.A. Australia -ncorporate& none
4.2.15 the Australian ,ouncil o+ 6ocial 6ervice
-ncorporate&
!0 8une 201!
4.2.1$ 3econciliation Australia 2imite& the .i+t must be ma&e a+ter
6 7ecember 2000
4.2.20 3o)al 6ociet) +or the (revention o+ ,ruelt) to
Animals, Queenslan& -ncorporate&
22 7ecember 1$$$
4.2.21 ,rime 6toppers Aestern Australia 2imite& the .i+t must be ma&e a+ter
!1 *ctober 2002
4.2.22 Ne' 6outh Aales ,rime 6toppers 2imite& the .i+t must be ma&e a+ter
!1 *ctober 2002
4.2.2! ,rime 6toppers Tasmania the .i+t must be ma&e a+ter
28 November 2002
4.2.24 ,rime 6toppers Queenslan& 2imite& the .i+t must be ma&e a+ter
2! 8anuar) 200!
4.2.25 ,rime 6toppers Australia 2t& the .i+t must be ma&e a+ter
4 8une 200!
4.2.26 Alcohol %&ucation an& 3ehabilitation
Eoun&ation 2imite&
5 8une 200!
4.2.2" ,rime 6toppers 6outh Australia 2imite& the .i+t must be ma&e on
or a+ter 1$ 6eptember
200!
4.2.28 -nternational 6ocial 6ervice # Australian ?ranch the .i+t must be ma&e a+ter
1" March 2004
4.2.2$ the Victorian ,rime 6toppers (ro.ram the .i+t must be ma&e a+ter
22 April 2004
4.2.!1 ,rime 6toppers Northern Territor) (ro.ram the .i+t must be ma&e a+ter
1! March 2005
4.2.!1
A
A,T 3e.ion ,rime 6toppers 2imite& the .i+t must be ma&e a+ter
12 Eebruar) 200$
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
4.2.!2 Ni&sa+e A,T /-nc.0 the .i+t must be ma&e a+ter
2 Au.ust 200"
4.2.!! Ni&sa+e Ne' 6outh Aales /-nc.0 the .i+t must be ma&e a+ter
2 Au.ust 200"
4.2.!4 Ni&sa+e NT /-nc.0 the .i+t must be ma&e a+ter
2 Au.ust 200"
4.2.!5 Ni&sa+e Ql& /-nc.0 the .i+t must be ma&e a+ter
2 Au.ust 200"
4.2.!6 Ni&sa+e 6A -ncorporate& the .i+t must be ma&e a+ter
2 Au.ust 200"
4.2.!" Ni&sa+e Tasmania /-nc0 the .i+t must be ma&e a+ter
2 Au.ust 200"
4.2.!8 Ni&sa+e Vic /-nc.0 the .i+t must be ma&e a+ter
2 Au.ust 200"
4.2.!$ Ni&sa+e Aestern Australia /-nc0 the .i+t must be ma&e a+ter
2 Au.ust 200"
4.2.40 -an ThorpeJs Eountain +or )outh 2imite& the .i+t must be ma&e a+ter
28 Eebruar) 2008
4.2.41 200$ Victorian ?ush+ire Appeal Trust Account
/establishe& un&er section 1$ o+ the 7inancia"
Mana-ement Act 1994 o+ Victoria0
/a0 a+ter " Eebruar) 200$9
an&
/b0 be+ore 6 Eebruar)
2014
4.2.42 National ,on.ress o+ AustraliaJs Eirst (eoples
2imite&
!0 8une 201!
!0#45A Australian &isaster relie+ +un&sM&eclarations b) Minister
/10 Eor the purposes o+ item 4.1.5 o+ the table in subsection !0#45/10,
an event is a &isaster to 'hich this subsection applies i+ the
Minister has &eclare& it to be a &isaster. The Minister ma) &o so i+
satis+ie& that
/a0 it &evelope& rapi&l)9 an&
/b0 it resulte& in the &eath, serious in:ur) or other ph)sical
su++erin. o+ a lar.e number o+ people, or in 'i&esprea&
&ama.e to propert) or the natural environment.
/20 The MinisterJs &eclaration o+ an event as a &isaster
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
/a0 must be in 'ritin.9 an&
/b0 must speci+) the &a) /or the +irst &a)0 o+ the event9 an&
/c0 must be publishe& on the internet or b) another metho&
&etermine& b) the Minister.
/!0 The MinisterJs &eclaration o+ an event as a &isaster is not a
le.islative instrument.
/40 @ou can &e&uct a .i+t that )ou ma4e to a public +un& covere& b)
item 4.1.5 o+ the table in subsection !0#45/10, in relation to a
&isaster to 'hich subsection /10 o+ this section applies, onl) 'ithin
the 2 )ears be.innin. on the &a) speci+ie& in the &eclaration as the
&a) /or the +irst &a)0 o+ the event +or 'hich the +un& is to provi&e
relie+.
Note (ublic +un&s un&er item 4.1.5 o+ the table in subsection !0#45/10 are
+or &isaster relie+ o+ people in Australia. (ublic +un&s ma) also be
establishe& +or &isaster relie+ o+ people in other countries. 6ee
items $.1.1 /'hich is not limite& to &isaster relie+0 an& $.1.2 o+ the
table in section !0#80.
!0#46 Australian &isaster relie+ +un&sM&eclarations un&er 6tate an&
Territor) la'
/10 Eor the purposes o+ item 4.1.5 o+ the table in subsection !0#45/10, a
&isaster is one to 'hich this subsection applies i+
/a0 it is &eclare& to be a &isaster, or it .ives rise to a &eclaration
o+ a state o+ emer.enc), b) or 'ith the approval o+ a Minister
o+ a 6tate or Territor) un&er the la' o+ the 6tate or Territor)9
an&
/b0 it &evelope& rapi&l)9 an&
/c0 it resulte& in the &eath, serious in:ur) or other ph)sical
&ama.e to propert) or the natural environment9 an&
/&0 subsection !0#45A/10 &oes not appl) to it.
item 4.1.5 o+ the table in subsection !0#45/10, in relation to a
&isaster to 'hich subsection /10 o+ this section applies, onl) 'ithin
the 2 )ears be.innin.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
/a0 i+ the &a) /or the +irst &a)0 on 'hich the event occurre& is
speci+ie& in the &eclaration mentione& in para.raph /10/a0M
on that &a)9 or
/b0 other'iseMon the &a) o+ the &eclaration.
Note (ublic +un&s un&er item 4.1.5 o+ the table in subsection !0#45/10 are
+or &isaster relie+ o+ people in Australia. (ublic +un&s ma) also be
establishe& +or &isaster relie+ o+ people in other countries. 6ee
items $.1.1 /'hich is not limite& to &isaster relie+0 an& $.1.2 o+ the
7e+ence
!0#50 7e+ence
/10 This table sets out .eneral cate.ories o+ &e+ence recipients.
+e&ence-0eneral
institution
/pecial conditions-
&und, aut"orit. or
institution
/pecial conditions
-%i&t
5.1.1 the ,ommon'ealth or a
6tate
none the .i+t must be
ma&e +or purposes
o+ &e+ence
5.1.2 a public institution or public
+un& establishe& an&
maintaine& +or the com+ort,
recreation or 'el+are o+
members o+
/a0 the arme& +orces o+ an)
part o+ >er Ma:est)Js
&ominions9 or
/b0 an) allie& or other
+orei.n +orce servin. in
association 'ith >er
Ma:est)Js arme& +orces
the public institution or
public +un& must be
/a0 an
<
Australian
.overnment a.enc)9
or
/b0 a
<
re.istere& charit)
none
5.1.! a public +un& establishe&
provi&in. mone) to
reconstruct, or ma4e critical
/a0 an
<
Australian
.overnment a.enc)9
or
the .i+t must be
ma&e 'ithin the 2
)ears be.innin. on
the &a) on 'hich
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
repairs to, a particular 'ar
memorial that
/a0 is locate& in Australia9
an&
/b0 commemorates events in
a con+lict in 'hich
Australia 'as involve&,
or people 'ho are
mainl) Australians an&
'ho participate& on
AustraliaJs behal+ in a
con+lict9 an&
/c0 is a +ocus +or public
commemoration o+ the
events or people
mentione& in
para.raph /b09 an&
/&0 is solel) or mainl) use&
+or that public
commemoration
/b0 a
<
re.istere& charit)
/a0 the +un&9 or
/b0 i+ the +un& is
le.all) o'ne&
b) an entit)
that is en&orse&
+or the
operation o+ the
+un&Mthe
entit)9
is en&orse& as a
<
&e&uctible .i+t
recipient un&er
6ub&ivision !0#?A
/20 This table sets out speci+ic &e+ence recipients.
+e&ence-/peci&ic
5.2.1
1
The 362 Eoun&ation the .i+t must be ma&e a+ter
20 6eptember 2000
5.2.2
6
, % A ?ean Eoun&ation the .i+t must be ma&e a+ter
14 November 2005 an&
be+ore 15 November 200"
5.2.2
8
The ?athurst Aar Memorial ,arillon (ublic
Eun& Trust
2 Au.ust 200" an& be+ore
! Au.ust 200$
5.2.2
$
A% 2 ,ommemorative Eoun&ation 2t& the .i+t must be ma&e a+ter
28 Eebruar) 2008 an&
be+ore 1 March 2010
5.2.!
0
Memorials 7evelopment ,ommittee 2t& the .i+t must be ma&e a+ter
4 6eptember 200" an&
be+ore 1 8ul) 2010
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
5.2.!
1
the AnFac ,entenar) (ublic Eun& the .i+t must be ma&e a+ter
!0 November 2012 an&
be+ore 1 Ma) 201$
5.2.!
2
the Australian (eace4eepin. Memorial
(ro:ect -ncorporate&
!1 7ecember 2012 an&
be+ore 1 8anuar) 2015
5.2.!
!
National ?oer Aar Memorial Association
-ncorporate&
!1 7ecember 2012 an&
be+ore 1 8anuar) 2015
%nvironment
!0#55 The environment
/10 This table sets out .eneral cate.ories o+ environment recipients.
T"e en$ironment-0eneral
6.1.1 a public +un& that, 'hen the .i+t is ma&e, is on
the re.ister o+
<
environmental or.anisations
4ept un&er 6ub&ivision !0#%
none
/20 This table sets out speci+ic environment recipients.
T"e en$ironment-/peci&ic
6.2.1 the Australian ,onservation Eoun&ation -ncorporate& see section !0#60
6.2.2 5reenin. Australia 2imite& see section !0#60
6.2.! 2an&care Australia 2imite& see section !0#60
6.2.4 the National (ar4s Association o+ Ne' 6outh Aales see section !0#60
6.2.5 the Victorian National (ar4s Association
-ncorporate&
see section !0#60
6.2.6 Trust +or Nature /Victoria0 see section !0#60
6.2." the National (ar4s Association o+ Queenslan& see section !0#60
6.2.8 The Nature ,onservation 6ociet) o+ 6outh Australia
-ncorporate&
see section !0#60
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
6.2.$ the Nature Eoun&ation 6A -ncorporate& see section !0#60
6.2.1
0
the Aestern Australian National (ar4s an& 3eserves
Association -ncorporate&
see section !0#60
6.2.1
1
the Tasmanian ,onservation Trust -ncorporate& see section !0#60
6.2.1
2
the National (ar4s Association o+ the Australian
,apital Territor) -ncorporate&
see section !0#60
6.2.1
!
the National Trust o+ Australia /Ne' 6outh Aales0 none
6.2.1
4
the National Trust o+ Australia /Victoria0 none
6.2.1
5
The National Trust o+ Queenslan& none
6.2.1
6
The National Trust o+ 6outh Australia none
6.2.1
"
The National Trust o+ Australia /A.A.0 none
6.2.1
8
the National Trust o+ Australia /Tasmania0 none
6.2.1
$
The National Trust o+ Australia /Northern Territor)0 none
6.2.2
0
the National Trust o+ Australia /A.,.T.0 none
6.2.2
1
the Australian ,ouncil o+ National Trusts none
6.2.2
2
the Aorl& Ai&e Eun& +or Nature see section !0#60
6.2.2
!
Ma'sonJs >uts Eoun&ation 2imite& the .i+t must be ma&e
a+ter 1" March 1$$"
!0#60 5i+ts to a National (ar4s bo&) or conservation bo&) must satis+)
certain re=uirements
@ou can &e&uct a .i+t that )ou ma4e to an environmental institution
covere& b) an) o+ table items 6.2.1 to 6.2.12 or 6.2.22 in
subsection !0#55/20 onl) i+, at the time o+ ma4in. the .i+t
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
/a0 i+ the institution is not a
<
re.istere& charit)Mthe institution
has a.ree& to .ive the
<
%nvironment 6ecretar), 'ithin a
reasonable perio& a+ter the en& o+ the income )ear in 'hich
)ou ma&e the .i+t, statistical in+ormation about .i+ts ma&e to
the institution &urin. that income )ear9 an&
/b0 the institution has a polic) o+ not actin. as a mere con&uit +or
the &onation o+ mone) or propert) to other entities.
-n&ustr), tra&e an& &esi.n
!0#65 -n&ustr), tra&e an& &esi.n
This table sets out speci+ic in&ustr), tra&e an& &esi.n recipients.
Industr., trade and desi%n-/peci&ic
".2.! Aorl&64ills Australia none
".2.5 Australian ?usiness Aee4 2imite& the .i+t must be ma&e
a+ter 8 7ecember 200!
The +amil)
!0#"0 The +amil)
/10 This table sets out .eneral cate.ories o+ +amil) recipients.
T"e &amil.-0eneral
Item :und, aut"orit. or institution /pecial conditions-
&und, aut"orit. or
institution
/pecial
conditions-
%i&t
8.1.1 a public +un& establishe& an&
maintaine&
/a0 b) a
<
non#pro+it compan) to
'hich section !0#"5 applies9 an&
/b0 solel) +or the purpose o+
provi&in. mone) to be use& in
.ivin. or provi&in. marria.e
be a
<
re.istere&
charit)
none
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
e&ucation un&er the Marria-e
Act 1961 to in&ivi&uals in
Australia
8.1.2 a public +un& that is establishe& an&
maintaine&
/a0 b) a
<
non#pro+it compan) 'hich
receives +un&in. +rom the
,ommon'ealth to provi&e +amil)
counsellin. or +amil) &ispute
resolution 'ithin the meanin. o+
the 7ami"y a+ Act 19759 an&
/b0 solel) +or the purpose o+
provi&in. mone) to be use& in
provi&in. +amil) counsellin. or
+amil) &ispute resolution 'ithin
the meanin. o+ the 7ami"y a+
Act 1975 to in&ivi&uals in
Australia
be a
<
re.istere&
charit)
none
/20 This table sets out speci+ic +amil) recipients.
T"e &amil.-/peci&ic
8.2.! Australian ?reast+ee&in. Association the .i+t must be ma&e
a+ter !1 8ul) 2001
8.2.4 (la).roup N6A /-nc0. the .i+t must be ma&e
a+ter 14 April 2005
8.2.5 (la).roup AA /-nc0 the .i+t must be ma&e
a+ter 1! March 2005
8.2.6 (la).roup Queenslan& -ncorporate& the .i+t must be ma&e
a+ter 14 April 2005
8.2." (la).roup Tasmania -nc. the .i+t must be ma&e
a+ter 14 April 2005
8.2.8 (la).roup Association Northern Territor)
-ncorporate&
a+ter 24 Ma) 2005
8.2.$ A,T (la).roups Association -ncorporate& the .i+t must be ma&e
a+ter 14 April 2005
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
8.2.10 (la).roup Victoria -nc. the .i+t must be ma&e
a+ter 2! Eebruar) 2006
8.2.11 (la).roup 6A -nc the .i+t must be ma&e
a+ter 5 Au.ust 2006
8.2.12 (la).roup Australia 2imite& the .i+t must be ma&e
a+ter 2 Au.ust 2006
!0#"5 Marria.e e&ucation or.anisations must be approve&
Eor the purposes o+ item 8.1.1 o+ the table in subsection !0#"0/10,
this section applies to a compan) i+ the compan) has been
approve& b) the
<
Eamilies Minister un&er section $, o+ the
Marria-e Act 1961.
-nternational a++airs
!0#80 -nternational a++airs
/10 This table sets out .eneral cate.ories o+ international a++airs
recipients.
International a&&airs-0eneral
Ite
m
:und, aut"orit. or
institution
/pecial conditions-
&und, aut"orit. or
institution
/pecial conditions
-%i&t
$.1.
1
a public +un& &eclare& b) the
Treasurer to be a &evelopin.
countr) relie+ +un& un&er
section !0#85
/a0 a
<
re.istere& charit)9
or
/b0 operate& b) a
re.istere& charit)
see section !0#85
$.1.
2
a public +un& establishe& an&
maintaine& b) a
<
re.istere&
public benevolent institution
solel) +or provi&in. mone)
+or the relie+ /inclu&in. relie+
b) 'a) o+ assistance to
re#establish a communit)0 o+
people in a countr) other
none see
subsection !0#86/40
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
than
/a0 Australia9 an&
/b0 a countr) &eclare& b) the
<
Eorei.n A++airs Minister
to be a &evelopin.
countr)9
'ho are in &istress as a result
o+ a &isaster to 'hich
subsection !0#86/10 applies
/20 This table sets out speci+ic international a++airs recipients.
International a&&airs-/peci&ic
$.2.1 the Australian -nstitute o+ -nternational
A++airs
none
$.2.2 The 7iamon& 8ubilee Trust Australia the .i+t must be ma&e a+ter
!1 *ctober 2012 an& be+ore
1 8ul) 2015
$.2.! The Eoun&ation +or 7evelopment
,ooperation 2t&
none
$.2.4 Australian American %&ucation 2ea&ership
Eoun&ation 2imite&
26 8anuar) 1$$8
$.2.5 6)&ne) Talmu&ical ,olle.e Association
3e+u.ees *verseas Ai& Eun&
2$ 8anuar) 1$$8
$.2.6 Inite& -srael Appeal 3e+u.ee 3elie+ Eun&
2imite&
2$ 8anuar) 1$$8
$.2." the Asia 6ociet) AustralAsia ,entre the .i+t must be ma&e a+ter
6 7ecember 1$$8
$.2.8 The 5lobal Eoun&ation the .i+t must be ma&e a+ter
2 November 1$$$
$.2.$ A%1 -nc the .i+t must be ma&e a+ter
25 6eptember 2011 an&
be+ore 26 6eptember 2014
$.2.1
0
Australia +or IN>,3 the .i+t must be ma&e a+ter
2" 8une 200"
$.2.1 The Australia Eoun&ation in support o+ the .i+t must be ma&e a+ter
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
1 >uman 3i.hts Aatch 2imite& !0 8une 201!
$.2.1
2
2o') -nstitute +or -nternational (olic) the .i+t must be ma&e a+ter
1! Au.ust 200!
$.2.1
!
The 3otar) 2ea&ership Victoria Australian
%mbass) +or Timor#2este Eun& 2imite&
" November 2004 an& be+ore
1 8anuar) 2010
$.2.1
4
Ma4e a Mar4 Australia -ncorporate& the .i+t must be ma&e a+ter
!0 8une 201!
$.2.1
"
Uanana Vocational %&ucation Trust the .i+t must be ma&e a+ter
20 8ul) 2005 an& be+ore
1 8anuar) 2011
$.2.1
8
American Australian Association 2imite& the .i+t must be ma&e a+ter
1! November 2006
$.2.1
$
A>%%2,>A-36 E*3 N-76 -ncorporate& the .i+t must be ma&e a+ter
28 Eebruar) 2008 an& be+ore
1 March 2010
$.2.2
1
7iplomac) Trainin. (ro.ram 2imite& the .i+t must be ma&e a+ter
16 April 200$
$.2.2
2
6ichuan %arth=ua4e 6urvivin. ,hil&renJs
%&ucation Eun&
11 Ma) 2008 an& be+ore
1! Ma) 2010
$.2.2
!
?ali (eace (ar4 Association -nc the .i+t must be
/a0 ma&e a+ter 15 7ecember
200$ an& be+ore
16 7ecember 20149 an&
/b0 use& +or the purpose o+
establishin. the ?ali
(eace (ar4
$.2.2
4
the ,hristchurch %arth=ua4e Appeal Trust o+
Ne' Healan&
21 March 2011 an& be+ore
22 March 201!
$.2.2
5
3ho&es Trust in Australia the .i+t must be ma&e a+ter
21 *ctober 2011
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
!0#85 7evelopin. countr) relie+ +un&s
item $.1.1 o+ the table in subsection !0#80/10 onl) i+ the
&eclaration is in +orce at the time )ou ma4e the .i+t.
/20 The Treasurer ma), b) notice in the @a?ette, &eclare a public +un&
to be a &evelopin. countr) relie+ +un& i+ he or she is satis+ie& that
the +un&
/a0 has been establishe& b) an or.anisation &eclare& b) the
<
Eorei.n A++airs Minister to be an approve& or.anisation9 an&
/b0 is solel) +or the relie+ o+ people in a countr) &eclare& b) the
Eorei.n A++airs Minister to be a &evelopin. countr).
/!0 The notice must speci+) the &a) on 'hich it has e++ect. -t cannot
have e++ect earlier than the &a) on 'hich it is publishe& in the
@a?ette.
/40 The Treasurer ma), b) notice in the @a?ette, revo4e a &eclaration
that a public +un& is a &evelopin. countr) relie+ +un&. The notice
must speci+) the &a) on 'hich it has e++ect. -t cannot have e++ect
earlier than the &a) on 'hich it is publishe& in the @a?ette.
/50 A &eclaration b) the
<
Eorei.n A++airs Minister un&er this section
must be in 'ritin., si.ne& b) the Minister.
!0#86 7evelope& countr) &isaster relie+ +un&s
/10 Eor the purposes o+ item $.1.2 o+ the table in subsection !0#80/10, a
&isaster is one to 'hich this subsection applies i+ the Minister has
reco.nise& it as a &isaster. The Minister ma) &o so i+ satis+ie& that
/a0 it &evelope& rapi&l)9 an&
/b0 it resulte& in the &eath, serious in:ur) or other ph)sical
&ama.e to propert) or the natural environment.
/20 The MinisterJs reco.nition o+ an event as a &isaster
/a0 must be in 'ritin.9 an&
/b0 must speci+) the &a) /or the +irst &a)0 o+ the event9 an&
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
/c0 must be publishe& on the internet or b) another metho&
&etermine& b) the Minister.
/!0 The MinisterJs reco.nition o+ an event as a &isaster is not a
le.islative instrument.
item $.1.2 o+ the table in subsection !0#80/10 onl) 'ithin the 2
)ears be.innin. on the &a) speci+ie& in the reco.nition as the &a)
/or the +irst &a)0 o+ the event +or 'hich the +un& is to provi&e relie+.
Note A public +un& ma) also be establishe& +or &isaster relie+ o+ people in
Australia /see item 4.1.5 o+ the table in section !0#450.
6ports an& recreation
!0#$0 6ports an& recreation
This table sets out speci+ic sports an& recreation recipients.
/ports and recreation-/peci&ic
10.2.1 the Australian 6ports Eoun&ation none
10.2.2 5irl 5ui&es Australia none
10.2.! an institution that is 4no'n as a 6tate or
Territor) branch o+ 5irl 5ui&es Australia
none
10.2.4 the 6cout Association o+ Australia none
10.2.5 an institution that is 4no'n as a 6tate or
Territor) branch o+ the 6cout Association o+
Australia
none
10.2." The ?ra&man Memorial Eun& the .i+t must be ma&e
a+ter 24 Eebruar) 2001
10.2.8 Am) 5illett Eoun&ation the .i+t must be ma&e
a+ter 1! 6eptember 200"
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
(hilanthropic trusts
!0#$5 (hilanthropic trusts
This table sets out speci+ic philanthropic trusts.
("ilant"ropic trusts-/peci&ic
11.2.1 the ,onnellan Air'a)s Trust none
11.2.2 The Erien&s o+ the 7u4e o+ %&inbur.hJs
A'ar& in Australia -ncorporate&
none
11.2.4 the (la)+or& Memorial Trust none
11.2.5 The 6ir 3obert MenFies Memorial
Eoun&ation 2imite&
none
11.2." the Ainston ,hurchill Memorial Trust none
11.2.8 The Eoun&ation +or @oun. Australians the .i+t must be ma&e
a+ter 6 Ma) 2001
11.2.$ Vis) ,ares the .i+t must be ma&e
a+ter 1$ 8une 2001
,ultural or.anisations
!0#100 ,ultural or.anisations
/10 This table sets out .eneral cate.ories o+ cultural recipients.
Cultural or%anisations-0eneral
institution
/pecial
conditions-
%i&t
12.1.1 a public +un& that,
'hen the .i+t is
ma&e, is on the
re.ister o+
<
cultural
or.anisations 4ept
un&er
6ub&ivision !0#E
none none
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
12.1.2 a public librar) the public librar) must
/a0 be
/i0 an
<
Australian
/ii0 a
<
re.istere& charit)9
or
/b0 be operate& b)
/i0 an Australian
/ii0 a re.istere& charit)
none
12.1.! a public museum the public museum must
/a0 be
/i0 an
<
Australian
/ii0 a
<
re.istere& charit)9
or
/b0 be operate& b)
/i0 an Australian
none
12.1.4 a public art .aller) the public art .aller) must
/a0 be
/i0 an
<
Australian
/ii0 a
<
re.istere& charit)9
or
/b0 be operate& b)
/i0 an Australian
none
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
12.1.5 an institution
consistin. o+ a
public librar), public
museum an& public
art .aller) or o+ an)
2 o+ them
the institution must
/a0 be
/i0 an
<
Australian
/ii0 a
<
re.istere& charit)9
or
/b0 be operate& b)
/i0 an Australian
none
/20 This table sets out speci+ic cultural recipients.
Cultural or%anisations-/peci&ic
12.2.1 The Australiana Eun& none
12.2.2 Australian ?usiness Arts Eoun&ation 2t&. the .i+t must be ma&e
a+ter 8 November 1$$6
12.2.! The 3an+url) 2ibrar) 6ervice -ncorporate& the .i+t must be ma&e
a+ter 2 Ma) 2006
12.2.4 National Arboretum ,anberra Eun& the .i+t must be ma&e
a+ter !0 8une 201!
Eire an& emer.enc) services
!0#102 Eire an& emer.enc) services
This table sets out .eneral cate.ories o+ +ire an& emer.enc)
services recipients.
:ire and emer%enc. ser$ices-0eneral
institution
/pecial conditions
12A.1.1
an
<
a.enc) that has statutor)
responsibilit) +or the
coor&ination o+ volunteer
the .i+t or contribution must be
ma&e +or the purposes o+ supportin.
the coor&ination o+ volunteer +ire
bri.a&es or 6tate %mer.enc)
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
+ire bri.a&es or 6tate
%mer.enc) 6ervices
6ervices
12A.1.2 a public +un& 'hich
satis+ies all o+ the +ollo'in.
re=uirements
/a0 the +un& is establishe&
an& maintaine& b) an
<
a.enc) covere& b)
item 12A.1.19
/b0 the +un& is establishe&
an& maintaine& solel)
+or the purpose o+
supportin. the volunteer
base& emer.enc)
service activities o+
non#pro+it entities or o+
a.encies9
/c0 the principal activit) o+
the entities mentione&
in para.raph /b0 is the
provision o+ volunteer
base& emer.enc)
services that are
re.ulate& b) a
<
6tate
la' or a
<
Territor) la'
none
12A.1.! a public +un& 'hich
satis+ies all o+ the +ollo'in.
re=uirements
/a0 the +un& is establishe&
an& maintaine& b) a
non#pro+it entit) or
<
a.enc)9
none
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
/b0 the principal activit) o+
the entit) is the
provision o+ volunteer
base& emer.enc)
services that are
re.ulate& b) a
<
6tate
la' or a
<
Territor) la'9
/c0 the +un& is establishe&
an& maintaine& solel)
+or the purpose o+
supportin. the volunteer
base& emer.enc)
service activities o+ the
entit)
*ther recipients
!0#105 *ther recipients
This table sets out speci+ic other recipients.
7t"er recipients-speci&ic
1!.2.1 the ,ouncil +or 8e'ish
,ommunit) 6ecurit)
a+ter $ Au.ust 200"
1!.2.2 the Eoun&ation +or 3ural an&
3e.ional 3ene'al (ublic Eun&
a+ter 28 March 2000
1!.2.! @oun. %n&eavour @outh
6cheme (ublic Eun&
a+ter 24 6eptember
2001
1!.2.!A 2eeu'in *cean A&venture
Eoun&ation 2imite&
a+ter 16 April 200$
1!.2.4 2a)ne ?eachle) # Aim +or the
6tars Eoun&ation 2imite&
a+ter !0 8une 201!
1!.2.5 6ocial Tra&ers 2t& the .i+t must be ma&e
a+ter !0 8une 201!
1!.2." 2or& 6omers ,amp an& (o'er
>ouse
a+ter 4 March 2004
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
1!.2.8 6t 5eor.eJs ,athe&ral
3estoration Eun&
a+ter 2" 6eptember
2004 an& be+ore
1 8anuar) 2011
1!.2.14A ?unbur) 7iocese ,athe&ral
3ebuil&in. Eun&
a+ter 18 7ecember
2006 an& be+ore
1$ 7ecember 2010
1!.2.16 6ocial Ventures Australia
2imite&
a+ter ! Ma) 200"
1!.2.1" (A3 Melbourne 200$ 2imite& the .i+t must be ma&e
a+ter 2 Eebruar) 200$
an& be+ore 1 8anuar)
2010
1!.2.18 Mar) MacNillop ,anonisation
5i+t Eun&
a+ter 4 Au.ust 2010
an& be+ore 1 8ul)
2011
1!.2.1$ (hilanthrop) Australia -nc. the .i+t must be ma&e
a+ter 2" Eebruar)
201!
1!.2.20 The (rinceJs ,harities Australia
2imite&
a+ter !1 7ecember
201!
6ub&ivision !0#?AM%n&orsement o+ &e&uctible .i+t recipients
5ui&e to 6ub&ivision !0#?A
!0#115 Ahat this 6ub&ivision is about
This 6ub&ivision sets out rules about en&orsement o+ entities
an& .overnment entities as &e&uctible .i+t recipients.
%n&orsement o+ an entit) &escribe& /e1cept b) name0 in
6ub&ivision !0#A or !0#? lets )ou &e&uct a .i+t )ou ma4e to a
+un&, authorit) or institution that is, or is operate& b), the entit).
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
Table o+ sections
%n&orsement as a &e&uctible .i+t recipient
!0#120 %n&orsement b) ,ommissioner
!0#125 %ntitlement to en&orsement
!0#1!0 Maintainin. a .i+t +un&
5overnment entities treate& li4e entities
!0#180 >o' this 6ub&ivision applies to .overnment entities
%n&orsement as a &e&uctible .i+t recipient
!0#120 %n&orsement b) ,ommissioner
-+ an entit) applies +or en&orsement in accor&ance 'ith
7ivision 426 in 6che&ule 1 to the Taxation Administration Act
1953, the ,ommissioner must en&orse the entit)
/a0 as a
<
&e&uctible .i+t recipient, i+ the entit) is entitle& to be
en&orse& as a &e&uctible .i+t recipient9 or
/b0 as a
<
&e&uctible .i+t recipient +or the operation o+ a +un&,
authorit) or institution, i+ the entit) is entitle& to be en&orse&
as a &e&uctible .i+t recipient +or the operation o+ the +un&,
authorit) or institution.
Note Eor proce&ural rules relatin. to en&orsement, see 7ivision 426 in
6che&ule 1 to the Taxation Administration Act 1953.
!0#125 %ntitlement to en&orsement
%n&orsement o+ an entit) that is a +un&, authorit) or institution
/10 An entit) is entitle& to be en&orse& as a
<
i+
/a0 the entit) has an
<
A?N9 an&
/b0 the entit) is a +un&, authorit) or institution that
/i0 is &escribe& /but not b) name0 in item 1, 2 or 4 o+ the
table in section !0#159 an&
/ii0 is not &escribe& b) name in 6ub&ivision !0#? i+ it is
&escribe& in item 1 o+ that table9 an&
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
/iii0 meets the relevant con&itions /i+ an)0 i&enti+ie& in the
column hea&e& B6pecial con&itionsC o+ the item o+ that
table in 'hich it is &escribe&9 an&
/c0 the entit) meets the re=uirements o+ subsection /60, unless
/i0 the entit) is establishe& b) an Act9 an&
/ii0 the Act /or another Act0 &oes not provi&e +or the
'in&in. up or termination o+ the entit)9 an&
/&0 in the case o+ an
<
ancillar) +un&
/i0 the +un& complies 'ith the rules in the
<
public ancillar)
+un& .ui&elines or the
<
private ancillar) +un& .ui&elines
/'hichever are applicable09 an&
/ii0 all o+ the trustees o+ the +un& compl) 'ith those rules.
%n&orsement o+ an entit) +or operatin. a +un&, authorit) etc.
/20 An entit) is entitle& to be en&orse& as a
<
+or the operation o+ a +un&, authorit) or institution that is &escribe&
/but not b) name0 in item 1, 2 or 4 o+ the table in section !0#15 an&
is not &escribe& b) name in 6ub&ivision !0#? i+
/a0 the entit) has an
<
A?N9 an&
/b0 the entit)
/i0 le.all) o'ns the +un&9 or
/ii0 inclu&es the authorit) or institution9 an&
/c0 the +un&, authorit) or institution meets the relevant
con&itions /i+ an)0 i&enti+ie& in the column hea&e& B6pecial
con&itionsC o+ that item9 an&
/&0 the entit) meets the re=uirements o+ subsection /60, unless
/i0 the entit) is establishe& b) an Act9 an&
/ii0 the Act /or another Act0 &oes not provi&e +or the
'in&in. up or termination o+ the entit)9 an&
/e0 the entit) meets the re=uirements o+ section !0#1!0, unless
the entit) is en&orse& as a &e&uctible .i+t recipient un&er
para.raph !0#120/a0.
3elevant special con&itions in table in section !0#15
/!0 To avoi& &oubt
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
/a0 a con&ition re=uirin. the +un&, authorit) or institution to meet
the re=uirements o+ section !0#1" is not a relevant con&ition
+or the purposes o+ subpara.raph /10/b0/iii0 or para.raph /20
/c0 o+ this section9 an&
Note 6ection !0#1" re=uires the entit) to be en&orse& un&er this
6ub&ivision as a &e&uctible .i+t recipient.
/b0 in the case o+ a +un&, authorit) or institution that is &escribe&
in item 1 o+ the table in section !0#15Ma con&ition set out in
the relevant table item in 6ub&ivision !0#?, inclu&in. a
con&ition i&enti+ie& in the column hea&e& B6pecial
con&itionsM+un&, authorit) or institutionC o+ that item /i+
an)0, is a relevant con&ition +or the purposes o+
subpara.raph /10/b0/iii0 or para.raph /20/c0 o+ this section.
Note (ara.raph /c0 o+ the column hea&e& B6pecial con&itionsC o+
item 1 o+ the table in section !0#15 re=uires an) con&itions set
out in the relevant table item in 6ub&ivision !0#? to be satis+ie&.
Trans+er o+ assets +rom +un&, authorit) or institution
/60 A la' /outsi&e this 6ub&ivision0, a &ocument constitutin. the entit)
or rules .overnin. the entit)Js activities must re=uire the entit), at
the +irst occurrence o+ an event &escribe& in subsection /"0, to
trans+er to a +un&, authorit) or institution .i+ts to 'hich can be
&e&ucte& un&er this 7ivision
/a0 an) surplus assets o+ the .i+t +un& /see section !0#1!009 or
/b0 i+ the entit) is not re=uire& b) this section to meet the
re=uirements o+ section !0#1!0Man) surplus
/i0 .i+ts o+ mone) or propert) +or the principal purpose o+
the +un&, authorit) or institution9 an&
/ii0 contributions &escribe& in item " or 8 o+ the table in
section !0#15 in relation to a
<
+un&#raisin. event hel&
+or that purpose9 an&
/iii0 mone) receive& b) the entit) because o+ such .i+ts or
contributions.
%vents re=uirin. trans+er
/"0 The events are
/a0 the 'in&in. up o+ the +un&, authorit) or institution9 an&
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
/b0 i+ the entit) is en&orse& because o+ a +un&, authorit) or
institutionMthe revocation o+ the entit)Js en&orsement un&er
this 6ub&ivision relatin. to the +un&, authorit) or institution.
Note 1 There are 2 'a)s an entit) can be en&orse& because o+ a +un&,
authorit) or institution. An entit) can be en&orse& either &eca#se it is a
+un&, authorit) or institution or &eca#se it operates a +un&, authorit)
or institution.
Note 2 6ection 426#55 in 6che&ule 1 to the Taxation Administration Act 1953
&eals 'ith revocation o+ en&orsement.
Note ! The entit) is also re=uire& to 4eep appropriate recor&s see
section !82#15 o+ the Taxation Administration Act 19532
!0#1!0 Maintainin. a .i+t +un&
/10 The entit) must maintain +or the principal purpose o+ the +un&,
authorit) or institution a +un& /the gift fund0
/a0 to 'hich .i+ts o+ mone) or propert) +or that purpose are to be
ma&e9 an&
/b0 to 'hich contributions &escribe& in item " or 8 o+ the table in
section !0#15 in relation to a
<
+un&#raisin. event hel& +or that
purpose are to be ma&e9 an&
/c0 to 'hich an) mone) receive& b) the entit) because o+ such
.i+ts or contributions is to be cre&ite&9 an&
/&0 that &oes not receive an) other mone) or propert).
/20 The entit) must use the .i+t +un& onl) +or the principal purpose o+
the +un&, authorit) or institution.
%1ceptionMonl) one .i+t +un& re=uire& per entit)
/!0 An entit) that operates 2 or more +un&s, authorities or institutions
also meets the re=uirements o+ this section +or 2 or more o+ those
+un&s, authorities or institutions b) maintainin. a sin.le .i+t +un&
i+
/a0 the .i+t +un& meets the re=uirements in para.raphs /10/a0, /b0
an& /c0 in respect o+ each o+ the +un&s, authorities or
institutions +or 'hich the .i+t +un& is maintaine&9 an&
/b0 the .i+t +un& &oes not receive an) other mone) or propert).
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
/40 The entit) must use a .i+t or contribution ma&e to the +un& an& an)
mone) cre&ite& to the +un& onl) +or the principal purpose o+ the
+un&, authorit) or institution to 'hich the .i+t, contribution or
mone) relates.
Note The entit) is also re=uire& to 4eep appropriate recor&s +or each o+ the
+un&s, authorities or institutions see section !82#15 o+ the Taxation
Administration Act 19532
5overnment entities treate& li4e entities
!0#180 >o' this 6ub&ivision applies to .overnment entities
/10 The other sections o+ this 6ub&ivision appl) in relation to a
<
.overnment entit) in the same 'a) as the) appl) in relation to an
entit).
/20 6ubpara.raph !0#125/20/b0/i0 /as applie& b) this section0 operates
as i+ it re+erre& to the
<
.overnment entit) consistin. o+ persons, one
or more o+ 'hom controlle& the +un& /instea& o+ re+errin. to the
entit) le.all) o'nin. the +un&0.
6ub&ivision !0#,M3ules appl)in. to particular .i+ts o+ propert)
Table o+ sections
Valuation re=uirements
!0#200 5ettin. 'ritten valuations
!0#205 (rocee&s o+ the sale 'oul& have been assessable
!0#210 Approve& valuers
!0#212 Valuations b) the ,ommissioner
Aor4in. out the amount )ou can &e&uct +or a .i+t o+ propert)
!0#215 >o' much )ou can &e&uct
!0#220 3e&ucin. the amount )ou can &e&uct
8oint o'nership o+ propert)
!0#225 5i+t o+ propert) b) :oint o'ners
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
Valuation re=uirements
!0#200 5ettin. 'ritten valuations
/10 @ou satis+) the valuation re=uirements i+ )ou .et 2 or more 'ritten
valuations o+ the .i+t )ou ma&e.
Note 1 -n most cases, )ou nee& to .et these 'ritten valuations to be able to
&e&uct a .i+t o+ propert) that )ou ma4e to a recipient covere& b)
item 4, 5 or 6 o+ the table in section !0#15.
Note 2 @ou &o not nee& to .et 'ritten valuations in the circumstances set out
in section !0#205.
/20 The valuations must be b) &i++erent in&ivi&uals, each o+ 'hom is
an approve& valuer o+ the 4in& o+ propert) )ou are .ivin. a'a).
Note 6ection !0#210 &eals 'ith ho' an in&ivi&ual becomes an approve&
valuer.
/!0 %ach valuation must state the amount that, in the opinion o+ the
valuer, 'as
/a0 the
<
56T inclusive mar4et value o+ the propert) on the &a)
)ou ma&e the .i+t9 or
/b0 the
<
56T inclusive mar4et value o+ the propert) on the &a)
the valuation 'as ma&e.
/40 -+ a valuation states the
<
56T inclusive mar4et value o+ the
propert) on the &a) the valuation 'as ma&e, it must have been
ma&e 'ithin $0 &a)s be+ore or a+ter the .i+t 'as ma&e. >o'ever,
the ,ommissioner ma) allo' a lon.er perio& than this.
!0#205 (rocee&s o+ the sale 'oul& have been assessable
/10 @ou &o not nee& to .et 'ritten valuations o+ the .i+t )ou ma&e i+
/a0 no amount is inclu&e& in )our assessable income in respect o+
the .i+t )ou ma&e9 but
/b0 an amount +o#"d have been inclu&e& in )our assessable
income i+ )ou ha& sol& the propert) instea& o+ ma4in. the
.i+t.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
/20 >o'ever, this section &oes not appl) i+, apart +rom the operation o+
subsection 118#60/20, an amount 'oul& have been inclu&e& in )our
assessable income in respect o+ the .i+t )ou ma&e.
!0#210 Approve& valuers
/10 The
<
Arts 6ecretar) ma) approve an in&ivi&ual as a valuer o+ a
particular 4in& o+ propert). The approval must be in 'ritin., si.ne&
b) the 6ecretar).
/20 The 6ecretar) must, in &eci&in. 'hether to approve an in&ivi&ual,
have re.ar& to
/a0 the in&ivi&ualJs =uali+ications, e1perience an& 4no'le&.e in
valuin. that 4in& o+ propert)9 an&
/b0 the in&ivi&ualJs 4no'le&.e o+ the current
<
56T inclusive
mar4et value o+ that 4in& o+ propert)9 an&
/c0 the in&ivi&ualJs stan&in. in the pro+essional communit).
/10 -+ )ou ma4e a .i+t or contribution that is covere& b) a provision o+
this 7ivision that re+ers to the value o+ propert) as &etermine& b)
the ,ommissioner, )ou must see4 the valuation +rom the
,ommissioner.
/20 The ,ommissioner ma) char.e )ou the amount 'or4e& out in
accor&ance 'ith the re.ulations +or ma4in. the valuation.
Aor4in. out the amount )ou can &e&uct +or a .i+t o+ propert)
!0#215 >o' much )ou can &e&uct
/10 This section contains the rules +or 'or4in. out ho' much )ou can
&e&uct +or a .i+t o+ propert) that )ou ma4e to a recipient covere&
b) item 4, 5 or 6 o+ the table in section !0#15.
/20 The .eneral rule is that the amount )ou can &e&uct +or a .i+t o+ this
4in& is the avera.e o+ the
<
56T inclusive mar4et values /as
re&uce& un&er subsection !0#15/!0 i+ that subsection applies0
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
speci+ie& in the 'ritten valuations )ou .ot +rom the approve&
valuers.
Note -n some situations )ou must re&uce the amount )ou can &e&uct see
section !0#220.
/!0 The e1ceptions to the .eneral rule are set out in this table
Amount .ou can deduct &or a %i&t o& propert.
Ite
m
In t"is case: T"e amount .ou can deduct is:
1 6ection !0#205 /'hich is about the
procee&s o+ the sale bein.
assessable0 applies, an& )ou bou.ht
the propert)
the amount )ou pai& +or the propert),
re&uce& b) the amount o+ an)
<
input
ta1 cre&it to 'hich )ou are or 'ere
entitle& +or )our
<
ac=uisition o+ the
propert)
2 6ection !0#205 /'hich is about the
procee&s o+ the sale bein.
assessable0 applies, an& )ou create&
or pro&uce& the propert)
so much o+ the cost o+ creation or
pro&uction as )ou 'oul& have been
able to &e&uct i+ )ou ha& sol& the
propert), re&uce& b) the amount o+
an)
<
input ta1 cre&it to 'hich )ou are
or 'ere entitle& +or )our
<
ac=uisitions
to the e1tent that the) 'ere ma&e +or
the purpose o+ creatin. or pro&ucin.
the propert)
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
! Neither o+ cases 1 an& 2 applies,
an& )ou ac=uire& the propert)
/a0 less than one )ear be+ore
ma4in. the .i+t /other'ise than
b) inheritin. it09 or
/b0 +or the purpose o+ .ivin. it
a'a)9 or
/c0 sub:ect to an
<
arran.ement that
the propert) 'oul& be .iven
a'a)
the lesser o+ the amount )ou pai& +or
the propert) an&
/a0 i+ the avera.e o+ the 'ritten
valuations )ou .ot +airl)
represents the
<
56T inclusive
mar4et value /as re&uce& un&er
subsection /40 i+ that subsection
applies0 o+ the propert) on the &a)
)ou ma&e the .i+tMthat avera.e9
or
/b0 i+ it &oes notMthe
<
56T inclusive
mar4et value /as re&uce& un&er
subsection /40 i+ that subsection
applies0 o+ the propert) on the &a)
)ou ma&e the .i+t
4 None o+ cases 1 to ! applies, an&
the avera.e o+ the 'ritten valuations
)ou .ot &oes not +airl) represent the
<
&a) )ou ma&e the .i+t
the
<
56T inclusive mar4et value /as
re&uce& un&er subsection /40 i+ that
subsection applies0 o+ the propert) on
the &a) )ou ma&e the .i+t
/40 Eor the purposes o+ items ! an& 4 o+ the table in subsection /!0, the
<
56T inclusive mar4et values o+ the propert) in =uestion are
re&uce& b)
1
K11 i+ )ou 'oul& have been entitle& to an
<
input ta1
cre&it i+
/a0 )ou ha&
<
ac=uire& the propert) at the time )ou ma&e the .i+t9
an&
/b0 )our ac=uisition ha& been +or a
<
cre&itable purpose.
!0#220 3e&ucin. the amount )ou can &e&uct
/10 The amount )ou can &e&uct is re&uce& b) a reasonable amount i+
/a0 the terms an& con&itions on 'hich the .i+t is ma&e are such
that the recipient
/i0 &oes not receive imme&iate custo&) an& control o+ the
propert)9 or
/ii0 &oes not have the uncon&itional ri.ht to retain custo&)
an& control o+ the propert) in perpetuit)9 or
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
/iii0 &oes not obtain an imme&iate, in&e+easible an&
unencumbere& le.al an& e=uitable title to the propert)9
or
/b0 the custo&), control or use o+ the propert) b) the recipient is
a++ecte& b) an
<
arran.ement entere& into in respect o+ the
ma4in. o+ the .i+t.
/20 -n &eci&in. 'hat is a reasonable amount, have re.ar& to the e++ect
o+ those terms an& con&itions, or that
<
arran.ement, on the
<
56T
inclusive mar4et value o+ the .i+t.
8oint o'nership o+ propert)
!0#225 5i+t o+ propert) b) :oint o'ners
-+
/a0 )ou o'n propert) :ointl) 'ith one or more other entities9 an&
/b0 )ou an& the other entities ma4e a .i+t o+ the propert)9 an&
/c0 )ou 'oul& have been able to &e&uct the .i+t un&er
section !0#15 because o+ item 4, 5 or 6 o+ the table in that
section i+ )ou ha& ma&e a .i+t o+ the propert) as sole o'ner
o+ it9
)ou can &e&uct so much o+ the .i+t as is reasonable, havin. re.ar&
to )our interest in the propert).
6ub&ivision !0#,AMA&ministrative re=uirements relatin. to A?Ns
5ui&e to 6ub&ivision !0#,A
An entit) must ensure certain &etails must appear on a receipt it
issues +or a .i+t that
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
/a0 is ma&e to the entit) or a +un&, authorit) or
institution it operates9 an&
/b0 is o+ a 4in& that the .iver can &e&uct un&er
6ub&ivision !0#A.
-+ the entit) has an A?N, the Australian ?usiness 3e.istrar must
state in the Australian ?usiness 3e.ister that the entit) is a
&e&uctible .i+t recipient.
Table o+ sections
3e=uirements
!0#22" %ntities to 'hich this 6ub&ivision applies
!0#228 ,ontent o+ receipt +or .i+t
!0#22$ Australian ?usiness 3e.ister must sho' &e&uctibilit) o+ .i+ts to &e&uctible
.i+t recipient
3e=uirements
!0#22" %ntities to 'hich this 6ub&ivision applies
/10 This 6ub&ivision sets out re=uirements relatin. to a
<
&e&uctible .i+t
recipient.
/20 A deductible gift recipient is an entit) or
<
.overnment entit) that
/a0 is a +un&, authorit) or institution &escribe& in item 1, 2, 4, 5
or 6 o+ the table in section !0#15 an& is
/i0 en&orse& un&er 6ub&ivision !0#?A as a &e&uctible .i+t
recipient9 or
/ii0 mentione& b) name in that table or in 6ub&ivision !0#?9
or
/b0 is en&orse& as a &e&uctible .i+t recipient +or the operation o+
a +un&, authorit) or institution &escribe& in item 1, 2 or 4 o+
the table in section !0#15.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
!0#228 ,ontent o+ receipt +or .i+t or contribution
/10 -+ a
<
&e&uctible .i+t recipient issues a receipt +or a .i+t &escribe& in
the relevant item o+ the table in section !0#15 to the +un&, authorit)
or institution, the &e&uctible .i+t recipient must ensure that the
receipt states
/a0 the name o+ the +un&, authorit) or institution9 an&
/b0 the
<
A?N /i+ an)0 o+ the &e&uctible .i+t recipient9 an&
/c0 the +act that the receipt is +or a .i+t.
Note -+ the &e&uctible .i+t recipient is en&orse& as a &e&uctible .i+t recipient
an& it contravenes this section, the ,ommissioner ma) revo4e its
en&orsement see section 426#55 in 6che&ule 1 to the Taxation
/20 -+ a
<
&e&uctible .i+t recipient issues a receipt +or a contribution
&escribe& in item " o+ the table in section !0#15, the &e&uctible .i+t
recipient must ensure that the receipt states
/a0 the name o+ the &e&uctible .i+t recipient9 an&
/b0 the
<
/c0 the +act that the receipt is +or a contribution ma&e in return
+or a ri.ht to atten&, or participate in, a speci+ie&
<
+un&#raisin. event9 an&
/&0 i+ the contribution is mone)Mthe amount o+ the contribution9
an&
/e0 the amount o+ the
<
56T inclusive mar4et value, on the &a)
the contribution 'as ma&e, o+ the ri.ht to atten&, or
participate in, the +un&#raisin. event.
/!0 Eor the purposes o+ para.raph /20/e0, in 'or4in. out the
<
56T
inclusive mar4et value o+ the ri.ht in =uestion, &isre.ar& an)thin.
that 'oul& prevent or restrict conversion o+ the ri.ht to mone).
/40 -+ a
<
&e&uctible .i+t recipient issues a receipt +or a contribution
&escribe& in item 8 o+ the table in section !0#15, the &e&uctible .i+t
recipient must ensure that the receipt states
/a0 the name o+ the &e&uctible .i+t recipient9 an&
/b0 the
<
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
/c0 the +act that the receipt is +or a contribution ma&e b) 'a) o+
consi&eration +or the suppl) o+ .oo&s or services9 an&
/&0 the +act that the contribution 'as ma&e because the
contributor 'as the success+ul bi&&er at an auction that
/i0 'as a speci+ie&
<
+un&#raisin. event9 or
/ii0 'as hel& at a speci+ie& +un&#raisin. event9 an&
/e0 i+ the contribution is mone)Mthe amount o+ the contribution9
an&
/+0 the
<
56T inclusive mar4et value, on the &a) the contribution
'as ma&e, o+ the .oo&s or services.
/50 Eor the purposes o+ para.raph /40/+0, in 'or4in. out the
<
56T
inclusive mar4et value o+ the .oo&s or services in =uestion,
&isre.ar& an)thin. that 'oul& prevent or restrict conversion o+ the
.oo&s or services to mone).
!0#22$ Australian ?usiness 3e.ister must sho' &e&uctibilit) o+ .i+ts to
/10 -+ a
<
&e&uctible .i+t recipient has an
<
A?N, the
<
Australian
?usiness 3e.istrar must enter in the
<
Australian ?usiness 3e.ister
in relation to the &e&uctible .i+t recipient a statement that it is a
&e&uctible .i+t recipient +or a speci+ie& perio&.
Note 1 An entr) /or lac4 o+ entr)0 o+ a statement re=uire& b) this section &oes
not a++ect 'hether )ou can &e&uct a .i+t to the +un&, authorit) or
institution.
Note 2 This section 'ill appl) to all entities an& .overnment entities that are
en&orse& as &e&uctible .i+t recipients un&er 6ub&ivision !0#?A,
because the) must have A?Ns to be en&orse&. -t 'ill also appl) to
other entities &escribe& or name& in 6ub&ivision !0#A i+ the) have
A?Ns.
/20 -+ the
<
&e&uctible .i+t recipient is a &e&uctible .i+t recipient onl)
because it is en&orse& un&er 6ub&ivision !0#?A as a &e&uctible .i+t
recipient +or the operation o+ a +un&, authorit) or institution, the
statement must name the +un&, authorit) or institution.
/2A0 -+
/a0 the
<
&e&uctible .i+t recipient is
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
/i0 a +un&, authorit) or institution9 or
/ii0 a &e&uctible .i+t recipient onl) because it is en&orse&
un&er 6ub&ivision !0#?A as a &e&uctible .i+t recipient
+or the operation o+ a +un&, authorit) or institution9 an&
/b0 the +un&, authorit) or institution is covere& b) item 1, 2 or 4
o+ the table in section !0#159
the statement must speci+) that the +un&, authorit) or institution is
covere& b) that item.
/!0 The
<
Australian ?usiness 3e.istrar ma) remove the statement +rom
the
<
Australian ?usiness 3e.ister a+ter the en& o+ the perio&.
/40 The
<
Australian ?usiness 3e.istrar must ta4e reasonable steps to
ensure that a statement appearin. in the
<
Australian ?usiness
3e.ister un&er this section is true. Eor this purpose, the 3e.istrar
ma)
/a0 chan.e the statement9 or
/b0 remove the statement +rom the 3e.ister i+ the statement is not
true9 or
/c0 remove the statement +rom the 3e.ister an& enter another
statement in the 3e.ister un&er this section.
6ub&ivision !0#7AM7onations to political parties an& in&epen&ent
can&i&ates an& members
5ui&e to 6ub&ivision !0#7A
5enerall), )ou can &e&uct certain contributions an& .i+ts to
political parties, in&epen&ent can&i&ates an& members.
,ontributions an& .i+ts must be at least S2 an& there is a limit on
the total amount that )ou can &e&uct.
Table o+ sections
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
!0#242 7e&uction +or political contributions an& .i+ts
!0#24! Amount o+ the &e&uction
!0#244 Ahen an in&ivi&ual is an in&epen&ent can&i&ate
!0#245 Ahen an in&ivi&ual is an in&epen&ent member
!0#242 7e&uction +or political contributions an& .i+ts
/10 @ou can &e&uct an) o+ the +ollo'in. +or the income )ear in 'hich
the) are ma&e
/a0 a contribution or .i+t to a political part) that is re.istere&
un&er (art U- o+ the Common+ea"th 9"ectora" Act 1918 or
un&er correspon&in. 6tate or Territor) le.islation9
/b0 a contribution or .i+t to an in&ivi&ual 'hen the in&ivi&ual is
an
<
in&epen&ent can&i&ate +or a ,ommon'ealth, 6tate,
Northern Territor) or Australian ,apital Territor) election9
/c0 a contribution or .i+t to an in&ivi&ual 'ho is, or 'as, an
<
in&epen&ent member o+ the ,ommon'ealth (arliament, a
6tate (arliament, the 2e.islative Assembl) o+ the Northern
Territor) or the 2e.islative Assembl) +or the Australian
,apital Territor).
/20 The contribution or .i+t must be o+
/a0 mone)9 or
/b0 propert) that )ou purchase& &urin. the 12 months be+ore
ma4in. the contribution or .i+t.
/!0 The value o+ the contribution or .i+t must be at least S2.
/!A0 @ou can &e&uct the contribution or .i+t onl) i+
/a0 )ou are an in&ivi&ual9 an&
/b0 )ou &o not ma4e the .i+t or contribution in the course o+
<
carr)in. on a
<
business.
/40 @ou cannot &e&uct a testamentar) contribution or .i+t un&er this
6ub&ivision.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
/50 A contribution or .i+t to an in&ivi&ual 'ho is, or 'as, an
<
in&epen&ent member must be ma&e
/a0 'hen the in&ivi&ual is an in&epen&ent member9 or
/b0 i+ the in&ivi&ual ceases to be an in&epen&ent member
because
/i0 a (arliament, a >ouse o+ a (arliament or a 2e.islative
Assembl) is &issolve& or has reache& its ma1imum
&uration9 or
/ii0 the in&ivi&ual comes up +or election9
a+ter the in&ivi&ual ceases to be a member but be+ore
can&i&ates +or the resultin. election are &eclare& or other'ise
publicl) announce& b) an entit) authorise& un&er the relevant
electoral le.islation.
!0#24! Amount o+ the &e&uction
/10 -+ the contribution or .i+t is mone), the amount o+ the &e&uction is
the amount o+ mone).
/20 -+ the contribution or .i+t is propert), the amount o+ the &e&uction
is the lesser o+
/a0 the mar4et value o+ the propert) on the &a) that )ou ma&e the
contribution or .i+t9 an&
/b0 the amount that )ou pai& +or the propert).
S1,500 limit on &e&uctions
/!0 @ou cannot &e&uct more than S1,500 un&er this 6ub&ivision +or an
income )ear +or contributions an& .i+ts to political parties.
/40 @ou cannot &e&uct more than S1,500 un&er this 6ub&ivision +or an
income )ear +or contributions an& .i+ts to
<
in&epen&ent can&i&ates
or
<
in&epen&ent members.
!0#244 Ahen an in&ivi&ual is an in&epen&ent can&i&ate
/10 An in&ivi&ual is an independent candidate i+
/a0 the in&ivi&ual is a can&i&ate in an election /inclu&in. an
election that is later &eclare& voi&0 +or members o+ the
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
,ommon'ealth (arliament, a 6tate (arliament, the
2e.islative Assembl) o+ the Northern Territor) or the
2e.islative Assembl) +or the Australian ,apital Territor)9
an&
/b0 the in&ivi&ualJs can&i&ature is not en&orse& b) a political
part) that is re.istere& un&er (art U- o+ the Common+ea"th
9"ectora" Act 1918 or un&er correspon&in. 6tate or Territor)
le.islation.
/20 >o'ever, an in&ivi&ual &oes not start bein. an
<
in&epen&ent
can&i&ate until the can&i&ates +or the election are &eclare& or
other'ise publicl) announce& b) an entit) authorise& un&er the
relevant electoral le.islation.
/!0 An in&ivi&ual stops bein. an
<
in&epen&ent can&i&ate 'hen the
result o+ the election is &eclare& or other'ise publicl) announce&
b) an entit) authorise& un&er the relevant electoral le.islation.
/40 -+
/a0 the election is ta4en to have 'holl) +aile& un&er the relevant
electoral le.islation9 an&
/b0 the result o+ the election has not been &eclare& or other'ise
electoral le.islation9
the in&ivi&ual stops bein. an
<
in&epen&ent can&i&ate in that
election 'hen can&i&ates +or the replacement election are &eclare&
or other'ise publicl) announce& b) an entit) authorise& un&er the
relevant electoral le.islation.
!0#245 Ahen an in&ivi&ual is an in&epen&ent member
/10 An in&ivi&ual is an independent member o+ the ,ommon'ealth
(arliament, a 6tate (arliament, the 2e.islative Assembl) o+ the
Northern Territor) or the 2e.islative Assembl) +or the Australian
,apital Territor) i+ the in&ivi&ual
/a0 is a member o+ that (arliament or 2e.islative Assembl)9 an&
/b0 the in&ivi&ual is not a member o+ a political part) that is
re.istere& un&er (art U- o+ the Common+ea"th 9"ectora" Act
1918 or un&er correspon&in. 6tate or Territor) le.islation.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
/20 An in&ivi&ual 'ho becomes a member as a result o+ an election
/inclu&in. an election that is later &eclare& voi&0 is ta4en to start
bein. a member o+ the (arliament or 2e.islative Assembl) 'hen
the in&ivi&ualJs election as a member is &eclare& or other'ise
electoral le.islation.
6ub&ivision !0#7?M6prea&in. certain .i+t an& covenant
&e&uctions over up to 5 income )ears
5ui&e to 6ub&ivision !0#7?
This 6ub&ivision allo's )ou to elect to sprea& &e&uctions +or
certain .i+ts an& covenants over up to 5 income )ears. There are
some &i++erent re=uirements +or environmental, herita.e an&
cultural propert) .i+ts an& conservation covenants.
Table o+ sections
!0#24" 5i+ts an& covenants +or 'hich elections can be ma&e
!0#248 Ma4in. an election
!0#24$ %++ect o+ election
!0#24$A 3e=uirementsMenvironmental propert) .i+ts
!0#24$? 3e=uirementsMherita.e propert) .i+ts
!0#24$, 3e=uirementsMcertain cultural propert) .i+ts
!0#24$7 3e=uirementsMconservation covenants
!0#24" 5i+ts an& covenants +or 'hich elections can be ma&e
/10 An election un&er this 6ub&ivision ma) be ma&e +or a .i+t, ma&e
on or a+ter 1 8ul) 200!, that is
/a0 a .i+t o+
/i0 mone)9 or
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
/ii0 propert) value& b) the ,ommissioner at more than
S5,0009
ma&e to a +un&, authorit) or institution covere& b) item 1 or
2 o+ the table in section !0#159 or
/b0 a .i+t that is covere& b) item 4, 5 or 6 o+ the table in
section !0#15.
/20 An election un&er this 6ub&ivision ma) also be ma&e +or enterin.
into a
<
conservation covenant, un&er 7ivision !1, on or a+ter 1 8ul)
200!.
!0#248 Ma4in. an election
/10 -+ )ou can &e&uct an amount
/a0 un&er this 7ivision +or a .i+t covere& b)
subsection !0#24"/109 or
/b0 un&er 7ivision !1 +or enterin. into a
<
conservation covenant
covere& b) subsection !0#24"/209
)ou ma) ma4e a 'ritten election to sprea& that &e&uction over the
current income )ear an& up to 4 o+ the imme&iatel) +ollo'in.
income )ears.
/20 -n the election, )ou must speci+) the percenta.e /i+ an)0 o+ the
&e&uction that )ou 'ill &e&uct in each o+ the income )ears.
/!0 @ou must ma4e the election be+ore )ou lo&.e )our
<
income ta1
return +or the income )ear in 'hich )ou ma&e the .i+t or entere&
into the covenant.
/40 @ou ma) var) an election at an) time. >o'ever, the variation can
onl) chan.e the percenta.e that )ou 'ill &e&uct in respect o+
income )ears +or 'hich )ou have not )et lo&.e& an
<
income ta1
return.
/50 Inless section !0#24$A, !0#24$? or !0#24$, applies, the election
an& an) variation must be in the
<
approve& +orm.
Note 6ections !0#24$A, !0#24$? an& !0#24$, provi&e +or the +orm o+
elections an& variations +or .i+ts covere& b) those sections.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
!0#24$ %++ect o+ election
/10 -n each o+ the income )ears )ou speci+ie& in the election, )ou can
&e&uct the amount correspon&in. to the percenta.e )ou speci+ie&
+or that )ear.
/20 @ou cannot &e&uct the amount that )ou other'ise 'oul& have been
able to &e&uct +or the .i+t in the income )ear in 'hich )ou ma&e
the .i+t or entere& into the covenant.
!0#24$A 3e=uirementsMenvironmental propert) .i+ts
/10 This section applies i+ )ou ma4e an election +or a .i+t o+ propert)
ma&e to a +un&, authorit) or institution covere& b) section !0#55.
/20 @ou must .ive a cop) o+ the election to the
<
%nvironment 6ecretar)
be+ore )ou lo&.e )our
<
income ta1 return +or the income )ear in
'hich )ou ma&e the .i+t.
/!0 -+ )ou var) the election, )ou must .ive a cop) o+ the variation to
the
<
%nvironment 6ecretar) be+ore )ou lo&.e )our
<
income ta1
return +or the +irst income )ear to 'hich the variation applies.
/40 The election an& an) variation must be in a +orm approve& in
'ritin. b) the
<
%nvironment 6ecretar).
!0#24$? 3e=uirementsMherita.e propert) .i+ts
/10 This section applies i+ )ou ma4e an election +or a .i+t o+ propert)
ma&e to a +un&, authorit) or institution covere& b) item 6 o+ the
<
>erita.e 6ecretar)
<
'hich )ou ma&e the .i+t.
the
<
>erita.e 6ecretar) be+ore )ou lo&.e )our
<
income ta1 return
+or the +irst income )ear to 'hich the variation applies.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
'ritin. b) the
<
>erita.e 6ecretar).
!0#24$, 3e=uirementsMcertain cultural propert) .i+ts
/10 This section applies i+ )ou ma4e an election +or a .i+t covere& b)
item 4 or 5 o+ the table in section !0#15.
<
Arts 6ecretar) be+ore
)ou lo&.e )our
<
income ta1 return +or the income )ear in 'hich
)ou ma&e the .i+t.
the
<
Arts 6ecretar) be+ore )ou lo&.e )our
<
income ta1 return +or
the +irst income )ear to 'hich the variation applies.
'ritin. b) the
<
Arts 6ecretar).
!0#24$7 3e=uirementsMconservation covenants
/10 This section applies i+ )ou ma4e an election +or a
<
conservation
covenant.
<
%nvironment 6ecretar)
<
'hich )ou entere& the covenant.
the
<
%nvironment 6ecretar) be+ore )ou lo&.e )our
<
income ta1
return +or the +irst income )ear to 'hich the variation applies.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
Income Tax Assessment Act 1997 30$
6ection !0#85
6ub&ivision !0#%M3e.ister o+ environmental or.anisations
5ui&e to 6ub&ivision !0#%
This 6ub&ivision re=uires the establishment o+ a re.ister o+
environmental or.anisations. 6ection !0#15 allo's )ou to &e&uct
a .i+t that )ou ma4e to a +un& that is on the re.ister.
Table o+ sections
!0#255 %stablishin. the re.ister
!0#260 Meanin. o+ en!ironmenta" or-anisation
!0#265 -ts principal purpose must be protectin. the environment
!0#2"0 *ther re=uirements it must satis+)
!0#2"5 Eurther re=uirement +or a bo&) corporate or a co#operative societ)
!0#280 Ahat must be on the re.ister
!0#285 3emoval +rom the re.ister
!0#255 %stablishin. the re.ister
The
<
%nvironment 6ecretar) must 4eep a re.ister o+
<
environmental or.anisations.
Note 6ection !0#280 sets out 'hat &etails must be entere& on the re.ister.
!0#260 Meanin. o+ en!ironmenta" or-anisation
An environmental organisation is
/a0 a bo&) corporate9 or
/b0 a co#operative societ)9 or
/c0 a trust9 or
/&0 an unincorporate& bo&) establishe& +or a public purpose b)
the ,ommon'ealth, a 6tate or a Territor)9
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
that satis+ies each re=uirement in sections !0#265 an& !0#2"0.
Note A bo&) corporate or a co#operative societ) must satis+) a +urther
re=uirement see section !0#2"5.
!0#265 -ts principal purpose must be protectin. the environment
/10 -ts principal purpose must be
/a0 the protection an& enhancement o+ the natural environment or
o+ a si.ni+icant aspect o+ the natural environment9 or
/b0 the provision o+ in+ormation or e&ucation, or the carr)in. on
o+ research, about the natural environment or a si.ni+icant
aspect o+ the natural environment.
/20 -t must maintain a public +un& that meets the re=uirements o+
section !0#1!0, or 'oul& meet those re=uirements i+ the
<
environmental or.anisation 'ere a +un&, authorit) or institution.
/40 -t must have a.ree& to compl) 'ith an) rules that the Treasurer an&
the
<
%nvironment Minister ma4e to ensure that .i+ts ma&e to the
+un& are use& onl) +or its principal purpose.
!0#2"0 *ther re=uirements it must satis+)
No pa)ment o+ pro+its to its members
/10 -t must not pa) an) o+ its pro+its or +inancial surplus, or .ive an) o+
its propert), to its members, bene+iciaries, controllers or o'ners /as
appropriate0.
No actin. as a con&uit
/20 -t must have a polic) o+ not actin. as a mere con&uit +or the
&onation o+ mone) or propert) to other or.anisations, bo&ies or
persons.
6urplus assets to be trans+erre& on 'in&in. up
/!0 -t must have rules provi&in. that, i+ the public +un& is 'oun& up,
an) surplus assets o+ the +un& are to be trans+erre& to another +un&
that is on the re.ister.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
6tatistical in+ormation to be provi&e&
/40 -t must have a.ree& to .ive the
<
%nvironment 6ecretar), 'ithin a
reasonable perio& a+ter the en& o+ each income )ear, statistical
in+ormation about .i+ts ma&e to the public +un& &urin. that income
)ear.
!0#2"5 Eurther re=uirement +or a bo&) corporate or a co#operative
societ)
A bo&) corporate /e1cept a statutor) authorit)0 or a co#operative
societ) is an environmental organisation onl) i+
/a0 its membership consists principall) o+ bo&ies corporate9 or
/b0 it has at least 50 members 'ho are in&ivi&uals that are
/i0 re.ar&e& as +inancial members9 an&
/ii0 entitle& to vote at a .eneral meetin. o+ it9 or
/c0 the
<
%nvironment Minister has &etermine& that, because o+
special circumstances, it &oes not have to meet either o+ the
re=uirements in para.raph /a0 or /b0.
!0#280 Ahat must be on the re.ister
/10 The
<
%nvironment 6ecretar) must enter on the re.ister each
<
environmental or.anisation, an& the public +un& it maintains, that
he or she has been &irecte& to enter b) the Treasurer an& the
<
%nvironment Minister.
/20 The Treasurer an& the Minister ma) so &irect the 6ecretar) onl) i+
the Minister has noti+ie& the Treasurer that he or she is satis+ie&
that an or.anisation is an
<
environmental or.anisation. The
noti+ication must be in 'ritin..
/!0 The &irection must be in 'ritin. an& must speci+) the &a) on
'hich the or.anisation an& public +un& are to be entere& on the
re.ister. The &a) must be the &a) on 'hich the &irection is .iven or
a later &a).
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
/40 The Treasurer an& the
<
%nvironment Minister must have re.ar& to
the policies an& bu&.etar) priorities o+ the ,ommon'ealth
5overnment in &eci&in. 'hether to .ive a &irection.
!0#285 3emoval +rom the re.ister
<
%nvironment Minister ma) &irect the
<
%nvironment 6ecretar) to remove an
<
environmental or.anisation,
an& the public +un& it maintains, +rom the re.ister.
/20 The &irection must be in 'ritin. an& must speci+) the &a) on
'hich the or.anisation an& public +un& are to be remove& +rom the
a later &a).
6ub&ivision !0#%AM3e.ister o+ harm prevention charities
5ui&e to 6ub&ivision !0#%A
This 6ub&ivision re=uires the establishment o+ a re.ister o+ harm
prevention charities. 6ection !0#15 allo's )ou to &e&uct a .i+t
that )ou ma4e to a +un& that is on the re.ister.
Table o+ sections
!0#28" %stablishin. the re.ister
!0#288 Meanin. o+ harm prevention charity
!0#28$ (rincipal activit)Mpromotin. the prevention or control o+ harm or abuse
!0#28$A *ther re=uirements
!0#28$? Ahat must be on the re.ister
!0#28$, 3emoval +rom the re.ister
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
!0#28" %stablishin. the re.ister
The
<
Eamilies 6ecretar) must 4eep a re.ister o+
<
harm prevention
charities.
Note 6ection !0#28$? sets out 'hat &etails must be entere& on the re.ister.
!0#288 Meanin. o+ harm pre!ention charity
A harm prevention charity is an institution that
/a0 satis+ies each re=uirement in sections !0#28$ an& !0#28$A9
an&
/aa0 is a
<
re.istere& charit)9 an&
/b0 is en&orse& as e1empt +rom income ta1 un&er
6ub&ivision 50#?.
!0#28$ (rincipal activit)Mpromotin. the prevention or control o+ harm
or abuse
/10 The principal activit) o+ the institution must be the promotion o+
the prevention or the control o+
<
behaviour that is harm+ul or
abusive to human bein.s.
/20 -t must maintain a public +un& that meets the re=uirements o+
section !0#1!0.
the
<
Eamilies Minister ma4e to ensure that .i+ts ma&e to the +un&
are use& onl) +or its principal activit).
!0#28$A *ther re=uirements
No actin. as a con&uit
/10 The institution must have a polic) o+ not actin. as a mere con&uit
+or the &onation o+ mone) or propert) to other or.anisations,
bo&ies or persons.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
6urplus assets to be trans+erre& on 'in&in. up
/20 -t must have rules provi&in. that, i+ the public +un& is 'oun& up,
an) surplus assets o+ the +un& are to be trans+erre& to another +un&
that is on the re.ister.
6tatistical in+ormation to be provi&e&
/!0 -t must have a.ree& to .ive the
<
Eamilies 6ecretar), 'ithin a
reasonable perio& a+ter the en& o+ each income )ear, statistical
in+ormation about .i+ts ma&e to the public +un& &urin. that income
)ear.
!0#28$? Ahat must be on the re.ister
/10 The
<
Eamilies 6ecretar) must enter on the re.ister each
<
harm
prevention charit), an& the public +un& it maintains, that he or she
has been &irecte& to enter b) the Treasurer an& the
<
Eamilies
Minister.
that an institution is a
<
harm prevention charit). The noti+ication
must be in 'ritin..
'hich the charit) an& public +un& are to be entere& on the re.ister.
The &a) must be the &a) on 'hich the &irection is .iven or a later
&a).
<
Eamilies Minister must have re.ar& to the
policies an& bu&.etar) priorities o+ the ,ommon'ealth
!0#28$, 3emoval +rom the re.ister
<
Eamilies Minister ma) &irect the
<
Eamilies
6ecretar) to remove a
<
harm prevention charit), an& the public
+un& it maintains, +rom the re.ister.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
'hich the charit) an& public +un& are to be remove& +rom the
a later &a).
6ub&ivision !0#EM3e.ister o+ cultural or.anisations
5ui&e to 6ub&ivision !0#E
!0#2$0 Ahat this 6ub&ivision is about
This 6ub&ivision re=uires the establishment o+ a re.ister o+
cultural or.anisations. 6ection !0#15 allo's )ou to &e&uct a .i+t
that )ou ma4e to a +un& that is on the re.ister.
Table o+ sections
!0#2$5 %stablishin. the re.ister
!0#!00 Meanin. o+ c#"t#ra" or-anisation
!0#!05 Ahat must be on the re.ister
!0#!10 3emoval +rom the re.ister
!0#2$5 %stablishin. the re.ister
The
<
Arts 6ecretar) must 4eep a re.ister o+
<
cultural or.anisations.
Note 6ection !0#!05 sets out 'hat &etails must be entere& on the re.ister.
!0#!00 Meanin. o+ c#"t#ra" or-anisation
/10 A cultural organisation is
/a0 a bo&) corporate9 or
/b0 a trust9 or
/c0 an unincorporate& bo&) establishe& +or a public purpose b)
the ,ommon'ealth, a 6tate or a Territor)9
that satis+ies each re=uirement in this section.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
/20 -ts principal purpose must be the promotion o+ literature, music, a
per+ormin. art, a visual art, a cra+t, &esi.n, +ilm, vi&eo, television,
ra&io, communit) arts, arts o+
<
-n&i.enous persons or movable
cultural herita.e.
/!0 -t must maintain a public +un& that meets the re=uirements o+
section !0#1!0, or 'oul& meet those re=uirements i+ the
<
cultural
or.anisation 'ere a +un&, authorit) or institution.
/50 -t must not pa) an) o+ its pro+its or +inancial surplus, or .ive an) o+
its propert), to its members, bene+iciaries, controllers or o'ners /as
appropriate0.
the
<
Arts Minister ma4e to ensure that .i+ts ma&e to the +un& are
use& onl) +or its principal purpose.
/"0 -t must have a.ree& to .ive the
<
Arts 6ecretar), at intervals o+ 6
months, statistical in+ormation about .i+ts ma&e to the public +un&
&urin. the last 6 months.
!0#!05 Ahat must be on the re.ister
/10 The
<
Arts 6ecretar) must enter on the re.ister each
<
cultural
or.anisation, an& the public +un& it maintains, that he or she has
been &irecte& to enter b) the Treasurer an& the
<
Arts Minister.
that an or.anisation is a
<
cultural or.anisation. The noti+ication
must be in 'ritin..
'hich the or.anisation an& public +un& are to be entere& on the
a later &a).
<
Arts Minister must have re.ar& to the
policies an& bu&.etar) priorities o+ the ,ommon'ealth
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
!0#!10 3emoval +rom the re.ister
<
Arts Minister ma) &irect the
<
Arts
6ecretar) to remove a
<
cultural or.anisation, an& the public +un& it
maintains, +rom the re.ister.
'hich the or.anisation an& public +un& are to be remove& +rom the
a later &a).
6ub&ivision !0#5M-n&e1 to this 7ivision
Table o+ sections
!0#!15 -n&e1
!0#!20 %++ect o+ this 6ub&ivision
!0#!15 -n&e1
/10 The table in this section .ives )ou an in&e1 to this 7ivision.
/20 -t tells )ou
each topic covere& b) this 7ivision9 an&
'here in this 7ivision )ou can +in& the &etail about each
topic.
Note -n the last column there are man) re+erences in this +orm item 2.2.1.
These re+er to items in the tables in 6ub&ivision !0#?.
Index
Topic (ro$ision
1A 200$ Victorian ?ush+ire Appeal Trust
Account
item 4.2.41
1AA Abori.inal %&ucation ,ouncil /N.6.A.0
-ncorporate&
item 2.2.26
1 Aca&emies # pro+essional section !0#25
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
2 Aca&em) o+ the 6ocial 6ciences in Australia
-ncorporate&
item 2.2.1
2AAA A,T (la).roups Association -ncorporate& item 8.2.$
2AA? A,T 3e.ion ,rime 6toppers 2imite& item 4.2.!1A
2AA, A%1 -nc item $.2.$
2A,A A% 2 ,ommemorative Eoun&ation 2t& item 5.2.2$
2A7 American Australian Association 2imite& item $.2.18
! Amnest) -nternational Australia item 4.2.1
!A Am) 5illett Eoun&ation item 10.2.8
4 Ancillar) +un&s item 2 o+ the table in
section !0#15
4A Animal 'el+are item 4.1.6
5 AnFac ,entenar) (ublic Eun& item 5.2.!1
6 Approve& research institutes item !.1.1
" Arme& +orces, au1iliaries item 5.1.2
8 Artban4 item 5 o+ the table in
section !0#15
$ Art .alleries items 12.1.4 an& 12.1.59
item 4 o+ the table in
section !0#15
$AA Asia 6ociet) AustralAsia ,entre item $.2."
$AAA Aurora %&ucation Eoun&ation 2imite& item 2.2.5
$A? Australasian ,olle.e +or %mer.enc) Me&icine item 1.2.18
$A Australia +or IN>,3 item $.2.10
$? Australia Eoun&ation in support o+ >uman
3i.hts Aatch 2imite&
item $.2.11
10 Australian Aca&em) o+ 6cience item 2.2.2
11 Australian Aca&em) o+ Technolo.ical
6ciences an& %n.ineerin. 2imite&
item 2.2.4
12 Australian Aca&em) o+ the >umanities +or the
A&vancement o+ 6cholarship in 2an.ua.e,
2iterature, >istor), (hilosoph) an& the Eine
Arts
item 2.2.!
1!A Australian American %&ucation 2ea&ership
Eoun&ation 2imite&
item $.2.4
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
14 Australiana Eun& item 12.2.19 item 4 o+ the
table in section !0#15
15 Australian an& Ne' Healan& Association +or
the A&vancement o+ 6cience
item 2.2.6
16 Australian an& Ne' Healan& ,olle.e o+
Anaesthetists
item 1.2.1!
1" Australian Antarctic Territor), pa)ment to
,ommon'ealth +or research
item !.2.!
1"AAA Australian ?reast+ee&in. Association item 8.2.!
1"AA Australian ?usiness Arts Eoun&ation 2t&. item 12.2.2
1"A Australian ?usiness 3e.ister section !0#22$
1"? Australian ?usiness Aee4 2imite& item ".2.5
20 Australian ,onservation Eoun&ation
-ncorporate&
item 6.2.1
20A Australian ,ouncil o+ ,hristians an& 8e's item 2.2.1"
21 Australian ,ouncil o+ 6ocial 6ervice
-ncorporate&
item 4.2.15
21A Australian >uman 3i.hts %&ucation Eun& item 2.2.25
22 Australian -nstitute o+ -nternational A++airs item $.2.1
2! Australian -relan& Eun& item 2.2."
24 Australian Nei.hbourhoo& >ouses L ,entres
Association /AN>,A0 -nc.
item 4.2.8
24A Australian Nu++iel& Earmin. 6cholars
Association
item 2.2.20
24? Australian (eace4eepin. Memorial (ro:ect
-ncorporate&
item 5.2.!2
25A Australian (rimar) (rincipals Association
%&ucation Eoun&ation
item 2.2.22
2" Australian 6ports Eoun&ation item 10.2.1
2"AAA ?ali (eace (ar4 Association -nc item $.2.2!
2"AA ?athurst Aar Memorial ,arillon (ublic Eun&
Trust
item 5.2.28
28AA ?ra&man Memorial Eun& item 10.2."
28A?A ?unbur) 7iocese ,athe&ral 3ebuil&in. Eun& 1!.2.14A
2$ ,ancer Australia item 1.2.1$
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
!0 ,entre +or -n&epen&ent 6tu&ies item !.2.1
!0AA , % A ?ean Eoun&ation item 5.2.26
!0A ,harlie (er4ins 6cholarship Trust item 2.2.!$
!0? ,hi+le) 3esearch ,entre 2imite& item !.2.8
!1 ,hil& Acci&ent (revention Eoun&ation o+
Australia
item 4.2.2
!1AA ,hristchurch %arth=ua4e Appeal Trust item $.2.24
!1? ,lontar+ Eoun&ation item 2.2.!2
!! ,olle.e buil&in.s item 2.1.10
!4AA ,ommon'ealth 6tu&) ,on+erences
/Australia0 -ncorporate&
item 2.2.2!
!5 ,on&itional .i+ts section !0#220
!6 ,onnellan Air'a)s Trust item 11.2.1
!" ,onservation bo&ies section !0#55
!8 ,onversation Trust item 2.2.42
!$ ,ouncil +or ,hristian %&ucation in 6chools item 2.2.10
!$A ,ouncil +or 8e'ish ,ommunit) 6ecurit) item 1!.2.1
40 ,ouncil +or 8e'ish %&ucation in 6chools item 2.2.11
40A ,ountr) %&ucation Eoun&ation o+ Australia
2imite&
item 2.2.!1
40? ,rime 6toppers 6outh Australia 2imite& item 4.2.2"
40, ,rime 6toppers Northern Territor) (ro.ram item 4.2.!1
42 ,ultural or.anisations section !0#100
4! ,ultural or.anisations, re.ister o+ 6ub&ivision !0#E
44 7e+ence or.anisations section !0#50
44AAA
A
7iamon& 8ubilee Trust Australia item $.2.2
44AAA 7iplomac) Trainin. (ro.ram 2imite& item $.2.21
44AA 7isaster relie+Mpublic +un& +or relie+ o+
people in Australia
item 4.1.5
44A? 7isaster relie+Mpublic +un& +or relie+ o+
people in &evelopin. countries
item $.1.1
44A, 7isaster relie+Mpublic +un& +or relie+ o+
people in &evelope& countries
item $.1.2
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
44A 7iseasesMcharitable institutions 'hose
principal activit) is to promote the prevention
or the control o+ &iseases in human bein.s
items 1.1.6 an& 4.1."
45 7iseasesMinstitutions researchin. causes,
prevention or cure
items 1.1.4 an& 1.1.5
45AAA 7on ,hipp Eoun&ation 2t& item !.2.$
45A 7)moc4s ,hil&renJs ,harities 2imite& item 2.2.21
46 %&ucationMe&ucation bo&ies section !0#25
46AA %&ucationMpublic +un& +or scholarships,
bursaries an& priFes
item 2.1.1!
46A %n&orsement as a &e&uctible .i+t recipient 6ub&ivision !0#?A
4" %nvironmental or.anisations section !0#55
48 %nvironmental or.anisations, re.ister o+ 6ub&ivision !0#%
48AA %thics e&ucation section !0#25
48A Eamil) an& chil& me&iation an& counsellin. item 8.1.1
4$ Eamil) or.anisations section !0#"0
4$? Eire an& emer.enc) services section !0#102
50 Eoun&ation +or 7evelopment ,ooperation 2t& item $.2.!
50? Eoun&ation +or 3ural an& 3e.ional 3ene'al
(ublic Eun&
item 1!.2.2
50, Eoun&ation +or @oun. Australians item 11.2.8
51 Erien&s o+ the 7u4e o+ %&inbur.hJs A'ar& in
Australia -ncorporate&
item 11.2.2
51AA Eun&#raisin. eventsMcontributions items " an& 8 o+ the table
in section !0#15
51A 5eneral 6ir 8ohn Monash Eoun&ation item 2.2.2"
52 5lobal Eoun&ation item $.2.8
52A 5rattan -nstitute item !.2.11
5! 5reenin. Australia 2imite& item 6.2.2
5!AA 5reen -nstitute 2imite& item !.2.12
5!A 5irl 5ui&es Australia items 10.2.2 an& 10.2.!
5!? >arm prevention charities items 4.1.4 an& 4.1."
54 >ealth or.anisations section !0#20
56 >erita.e properties item 6 o+ the table in
section !0#15
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
5" >i.her e&ucation institutions item 2.1.!
58 >ospitals items 1.1.1, 1.1.2 an&
1.1.!
60 -an ,lunies 3oss Memorial Eoun&ation item !.2.2
62 -n&ustr), tra&e an& &esi.n section !0#65
6! -nternational a++airs section !0#80
6!A -nternational 6ocial 6ervice # Australian
?ranch
item 4.2.28
6!? -nternational 6pecialise& 64ills -nstitute
-ncorporate&
item 2.2.!!
64 8oint o'nership o+ propert) section !0#225
64A Ni&sa+e items 4.2.!2 to 4.2.!$
/inclusive0
65 2an&care Australia 2imite& item 6.2.!
65AA 2a)ne ?eachle) # Aim +or the 6tars
Eoun&ation 2imite&
item 1!.2.4
65A 2eeu'in *cean A&venture Eoun&ation
2imite&
item 1!.2.!A
66 2ibraries items 12.1.2 an& 12.1.59
section !0#15
6" 2i+e %&ucation ,entre items 2.2.8 an& 2.2.$
6"A 2in.iari (olic) ,entre item !.2.10
68 2ionel Murph) Eoun&ation item 2.2.1!
68AA 2or& 6omers ,amp an& (o'er >ouse item 1!.2."
68A? 2o') -nstitute +or -nternational (olic) item $.2.12
68? Ma4e a Mar4 Australia -ncorporate& item $.2.14
6$ Marcus *l&ham Earm Mana.ement ,olle.e item 2.2.14
"0 Marria.e e&ucation or.anisations item 8.1.1
"0AA Mar) MacNillop ,anonisation 5i+t Eun& item 1!.2.18
"0A Ma'sonJs >uts Eoun&ation 2imite& item 6.2.2!
"1 Me&ical colle.es section !0#20
"2 Me&ical research section !0#20
"2AA Memorials 7evelopment ,ommittee 2t& item 5.2.!0
"2A MenFies 3esearch ,entre (ublic Eun& item !.2.4
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
"2, Mt %liFa 5ra&uate 6chool o+ ?usiness an&
5overnment 2imite&
item 2.2.24
"! Museums items 12.1.! an& 12.1.59
section !0#15
"!AAA National Arboretum ,anberra Eun& item 12.2.4
"!AA National ?oer Aar Memorial Association
-ncorporate&
item 5.2.!!
"!A National ?reast ,ancer ,entre 5i+t Eun& item 1.2.16
"!? National ,on.ress o+ AustraliaJs Eirst (eoples
2imite&
item 4.2.42
"4 National Eoun&ation +or Australian Aomen
2imite&
item 4.2.!
"5 National (ar4s associations section !0#55
"6 National 6a+et) ,ouncil o+ Australia 2imite& item 4.2.4
"" National Trust bo&ies section !0#559 item 6 o+
the table in section !0#15
""A Nature Eoun&ation 6A -ncorporate& item 6.2.$
"8 Nature or.anisations section !0#55
"$ Necessitous circumstances # +un&s +or relie+
o+
item 4.1.!
80 Ne' 6outh Aales ,olle.e o+ Nursin. item 1.2.5
81A *ne 2aptop per ,hil& Australia 2t& item 2.2.!8
82 *verseas relie+ +un&s item $.1.1
82A (a.e 3esearch ,entre 2imite& item !.2."
84 (eople in nee&, +un& +or item 4.1.!
85 (hilanthropic trusts section !0#$5
85A (hilanthrop) Australia -nc. item 1!.2.1$
86 (la)+or& Memorial Trust item 11.2.4
86A (la).roup Association Northern Territor)
-ncorporate&
item 8.2.8
86AA (la).roup Australia 2imite& item 8.2.12
86? (la).roup N6A /-nc0 item 8.2.4
86, (la).roup Queenslan& -ncorporate& item 8.2.6
86,A (la).roup 6A -nc item 8.2.11
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
867 (la).roup Tasmania -nc item 8.2."
867A (la).roup Victoria -nc. item 8.2.10
86% (la).roup AA /-nc0 item 8.2.5
8" (olitical parties an& in&epen&ent can&i&ates
an& members
6ub&ivision !0#7A
88 (oll) Earmer Eoun&ation /-nc0 item 2.2.16
8$ (revention o+ cruelt) to animals section !0#45
8$A (rinceJs ,harities Australia 2imite& item 1!.2.20
$0 (ro&uctivit) section !0#65
$2 (ropert), rules +or valuin. .i+ts section !0#15 an&
6ub&ivision !0#,
$2A (ublic ambulance services items 1.1." an& 1.1.8
$! (ublic benevolent institutions items 4.1.1, 4.1.2 an&
4.1."
$4 (A3 Melbourne 200$ 2imite& item 1!.2.1"
$4A? 3an+url) 2ibrar) 6ervice -ncorporate& item 12.2.!
$4A 3eceipts +or .i+ts 6ub&ivision !0#,A
$4? 3econciliation Australia 2imite& item 4.2.1$
$5 3eli.ious instructionKe&ucation section !0#25
$5A 3esearch Australia 2imite& item !.2.6
$6 3esearch institutions items 1.1.4 an& 1.1.5
$" 3esi&ential e&ucation institutions section !0#25
$"AAA 3ho&es Trust in Australia item $.2.25
$"AA 3oberta 6)4es -n&i.enous %&ucation
Eoun&ation
item 2.2.40
$"A 3o)al Australian an& Ne' Healan& ,olle.e o+
*bstetricians an& 5)naecolo.ists
item 1.2.1
$8 3o)al Australian an& Ne' Healan& ,olle.e o+
(s)chiatrists
item 1.2.6
$8A 3o)al Australian an& Ne' Healan& ,olle.e o+
3a&iolo.ists
item 1.2.4
$$ 3o)al Australian ,olle.e o+ 5eneral
(ractitioners
item 1.2."
100 3o)al Australasian ,olle.e o+ (h)sicians item 1.2.8
101 3o)al Australasian ,olle.e o+ 6ur.eons item 1.2.$
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
102 3o)al ,olle.e o+ Nursin., Australia item 1.2.12
10! 3o)al ,olle.e o+ (atholo.ists o+ Australasia item 1.2.10
10!A 3o)al -nstitution o+ Australia -ncorporate& item 2.2.!"
104 3o)al 6ocieties +or the (revention o+ ,ruelt)
to Animals
section !0#45
104? 362 Eoun&ation item 5.2.11
105 3ural school hostel buil&in.s item 2.1.11
10" 6chool buil&in. +un&s item 2.1.10
108 6chools section !0#25
10$ 6couts items 10.2.4 an& 10.2.5
110 6ichuan %arth=ua4e 6urvivin. ,hil&renJs
%&ucation Eun&
item $.2.22
110A 6ir %arl (a.e Memorial Trust item !.2.5
111 6ir 3obert MenFies Memorial Trust
Eoun&ation 2imite&
item 11.2.5
111A 6ir Ailliam T)ree Eoun&ation item 2.2.18
111AAA 6ocial Tra&ers 2t& item 1!.2.5
111AA 6ocial Ventures Australia 2imite& item 1!.2.16
111? 6outh,are >elicopter Eun& item 1.2.14
111, 6pirit o+ Australia Eoun&ation item 2.2.!6
112 6ports an& recreation section !0#$0
112AA 6prea&in. &e&uctions over income )ears 6ub&ivision !0#7?
112AE 6t 5eor.eJs ,athe&ral 3estoration Eun& item 1!.2.8
112, 6)&ne) Talmu&ical ,olle.e Association
3e+u.ees *verseas Ai& Eun&
item $.2.5
11! Tasmanian ,onservation Trust -ncorporate& item 6.2.11
114 Ta1ation incentives +or the Arts scheme items 4 an& 5 o+ the table
in section !0#15
114A Teach +or Australia item 2.2.41
115 Technical an& +urther e&ucation institution item 2.1."
116 Tertiar) e&ucationKTAE% section !0#25
116A Trust +or Nature /Victoria0 item 6.2.6
11" TrustsMancillar) item 2 o+ the table in
section !0#15
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
118 TrustsMphilanthropic section !0#$5
118A Inite& -srael Appeal 3e+u.ee 3elie+ Eun&
2imite&
item $.2.6
118? Inite& 6tates 6tu&ies ,entre item !.2.1!
118, Inite& Aa) Australia item 4.2.5
11$ Iniversities R .eneral section !0#25
120 Iniversities R research section !0#40
120A Valuations b) ,ommissioner section !0#212
121 Valuers section !0#210
121A Victorian ,rime 6toppers (ro.ram item 4.2.2$
122 Vis) ,ares item 11.2.$
12! Aar Memorials section !0#50
124 Ael+are an& ri.hts section !0#45
124A A>%%2,>A-36 E*3 N-76 -ncorporate& item $.2.1$
125 Ainston ,hurchill Memorial Trust item 11.2."
126 Aorl&64ills Australia item ".2.!
12" Aorl& Ai&e Eun& +or Nature Australia item 6.2.22
12"A Uanana Vocational %&ucation Trust item $.2.1"
12"? @acha& Accelerate& 2earnin. (ro:ect 2imite& item 2.2.!4
128 @oun. %n&eavour @outh 6cheme (ublic Eun& item 1!.2.!
!0#!20 %++ect o+ this 6ub&ivision
<
5ui&e.
Note -n interpretin. an operative provision, a 5ui&e ma) be consi&ere&
onl) +or limite& purposes see section $50#150.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
7ivision !1M,onservation covenants
@ou can &e&uct an amount i+ )ou enter into a conservation
covenant over lan& that )ou o'n an& )ou satis+) certain
con&itions.
The amount )ou can &e&uct is the &i++erence bet'een the mar4et
value o+ the lan& :ust be+ore an& a+ter )ou enter into the
covenant.
Table o+ sections
!1#5 7e&uction +or enterin. into conservation covenant
!1#10 3e=uirements +or +un&, authorit) or institution
!1#5 7e&uction +or enterin. into conservation covenant
/10 @ou can &e&uct an amount i+
/a0 )ou enter into a
<
conservation covenant over lan& )ou o'n9
an&
/b0 the con&itions set out in subsection /20 are met.
/20 These con&itions must be satis+ie&
/a0 the covenant must be perpetual9
/b0 )ou must not receive an) mone), propert) or other material
bene+it +or enterin. into the covenant9
/c0 the
<
mar4et value o+ the lan& must &ecrease as a result o+
)our enterin. into the covenant9
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
/&0 one or both o+ these must appl)
/i0 the chan.e in the mar4et value o+ the lan& as a result o+
enterin. into the covenant must be more than S5,0009
/ii0 )ou must have entere& into a contract to ac=uire the lan&
not more than 12 months be+ore )ou entere& into the
covenant9
/e0 the covenant must have been entere& into 'ith
/i0 a +un&, authorit) or institution that meets the
re=uirements o+ section !1#109 or
/ii0 the ,ommon'ealth, a 6tate, a Territor) or a
<
local
.overnin. bo&)9 or
/iii0 an authorit) o+ the ,ommon'ealth, a 6tate or a
Territor).
Note @ou must see4 a valuation o+ the chan.e in mar4et value +rom the
,ommissioner see section !1#15.
/!0 The amount )ou can &e&uct is the &i++erence bet'een the
<
mar4et
value o+ the lan& :ust be+ore )ou entere& the covenant an& its
&ecrease& mar4et value :ust a+ter that time, but onl) to the e1tent
that the &ecrease is attributable to )our enterin. into the covenant.
Note @ou can sprea& the &e&uction over a 5 )ear perio& see
6ub&ivision !0#7?.
/40 Eor the purposes o+ para.raph /20/a0, a covenant is treate& as bein.
perpetual even i+ a Minister o+ a 6tate or Territor) has a po'er to
rescin& it.
/50 A conservation covenant over lan& is a covenant that
/a0 restricts or prohibits certain activities on the lan& that coul&
&e.ra&e the environmental value o+ the lan&9 an&
/b0 is permanent an& re.istere& on the title to the lan& /i+
re.istration is possible09 an&
/c0 is approve& in 'ritin. b), or is entere& into un&er a pro.ram
approve& in 'ritin. b), the
<
%nvironment Minister.
!1#10 3e=uirements +or +un&, authorit) or institution
/10 The +un&, authorit) or institution
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
Income Tax Assessment Act 1997 3$$
6ection !0#85
/a0 must be covere& b) an item in an) o+ the tables in
6ub&ivision !0#? an& must meet an) con&itions set out in the
relevant table item9 or
/b0 must be an
<
ancillar) +un& establishe& un&er a 'ill or
instrument o+ trust solel) +or
/i0 the purpose o+ provi&in. mone), propert) or bene+its to
a +un&, authorit) or institution mentione& in
para.raph /a0 an& +or an) purposes set out in the item o+
the table in 6ub&ivision !0#? that covers the +un&,
authorit) or institution9 or
/ii0 the establishment o+ such a +un&, authorit) or institution.
/20 -+ the +un&, authorit) or institution is not liste& speci+icall) in
6ub&ivision !0#?, it must also
/a0 be in Australia9 an&
/b0 meet the re=uirements o+ section !0#1" /about the
en&orsement o+ &e&uctible .i+t recipients0.
/10 @ou must see4 a valuation o+ the chan.e in the
<
mar4et value o+ the
lan& +rom the ,ommissioner +or the purposes o+ this 7ivision.
/20 The ,ommissioner ma) char.e )ou the amount 'or4e& out in
accor&ance 'ith the re.ulations +or ma4in. the valuation.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
7ivision !2M%ntertainment e1penses
!2#A No &e&uction +or entertainment e1penses
!2#? %1ceptions
!2#, 7e+initions relevant to the e1ceptions
!2#7 -n#house &inin. +acilities /emplo)er e1penses table item 1.20
!2#% Anti#avoi&ance
!2#E 6pecial rules +or companies an& partnerships
@ou cannot &e&uct costs o+ provi&in. entertainment. Nor can
)ou &e&uct amounts +or propert) that )ou use +or provi&in.
entertainment. ?ut there are e1ceptions.
6ub&ivision !2#AMNo &e&uction +or entertainment e1penses
Table o+ sections
!2#5 No &e&uction +or entertainment e1penses
!2#10 Meanin. o+ entertainment
!2#15 No &e&uction +or propert) use& +or provi&in. entertainment
!2#5 No &e&uction +or entertainment e1penses
To the e1tent that )ou incur a loss or out.oin. in respect o+
provi&in.
<
entertainment, )ou cannot &e&uct it un&er section 8#1.
>o'ever, there are e1ceptions, 'hich are set out in
6ub&ivision !2#?.
Note 1 In&er section 8#1 )ou can &e&uct a loss or out.oin. that )ou incur +or
the purpose o+ pro&ucin. assessable income.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
Note 2 -+ )ou have use& )our propert) in provi&in. entertainment, )ou ma)
not be able to &e&uct an amount +or the propert) see section !2#15.
Note ! 6ection !2#"5 &eals 'ith arran.ements to avoi& the operation o+ this
section.
!2#10 Meanin. o+ entertainment
/10 +ntertainment means
/a0 entertainment b) 'a) o+ +oo&, &rin4 or
<
recreation9 or
/b0 accommo&ation or travel to &o 'ith provi&in. entertainment
b) 'a) o+ +oo&, &rin4 or
<
recreation.
/20 @ou are ta4en to provi&e entertainment even i+ business
&iscussions or transactions occur.
Note These are some e1amples o+ 'hat is entertainment
D business lunches
D social +unctions.
These are some e1amples o+ 'hat is not entertainment
D meals on business travel overni.ht
D theatre atten&ance b) a critic
D a restaurant meal o+ a +oo& 'riter.
!2#15 No &e&uction +or propert) use& +or provi&in. entertainment
To the e1tent that )ou use propert) in provi&in.
<
entertainment,
)our use o+ the propert) is ta4en not to be +or the
<
purpose o+
pro&ucin. assessable income i+ section !2#5 'oul& stop )ou
&e&uctin. a loss or out.oin. i+ )ou incurre& it in the income )ear in
provi&in. the entertainment.
Note In&er some provisions o+ this Act, in or&er to &e&uct an amount +or
)our propert), )ou must have use& the propert) +or the purpose o+
6ub&ivision !2#?M%1ceptions
Table o+ sections
!2#20 The main e1ceptionM+rin.e bene+its
!2#25 The tables set out the other e1ceptions
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
!2#!0 %mplo)er e1penses
!2#!5 6eminar e1penses
!2#40 %ntertainment in&ustr) e1penses
!2#45 (romotion an& a&vertisin. e1penses
!2#50 *ther e1penses
!2#20 The main e1ceptionM+rin.e bene+its
6ection !2#5 &oes not stop )ou &e&uctin. a loss or out.oin. to the
e1tent that )ou incur it in respect o+ provi&in.
<
entertainment b)
'a) o+
<
provi&in. a
<
+rin.e bene+it.
?ut this e1ception &oes not appl) to the e1tent that the ta1able
value o+ the
<
+rin.e bene+it is re&uce& un&er section 6!A o+ the
7rin-e 8ene%its Tax Assessment Act 19862
Note 1 @ou ma) be able to &e&uct losses or out.oin.s that are +rin.e bene+its
un&er section 51A%A, 51A%? or 51A%, o+ the Income Tax
Assessment Act 1936. -+ )ou &o, then )ou cannot &e&uct them un&er
section 8#1 /about .eneral &e&uctions0 an& so this section is not
relevant.
Note 2 There are other e1ceptions +or a loss or out.oin. )ou incur in
provi&in. a bene+it that 'oul& be a +rin.e bene+it i+ it 'ere not an
e1empt bene+it see items 1.6 an& 1." o+ the table in section !2#!0.
!2#25 The tables set out the other e1ceptions
6ection !2#5 &oes not stop )ou &e&uctin. a loss or out.oin. to the
e1tent that )ou incur it in respect o+ provi&in.
<
entertainment as
&escribe& in column 2 o+ an item o+ a table in this 6ub&ivision.
>o'ever, i+ column ! o+ that item applies, the e1ception in column
2 o+ that item &oes not.
!2#!0 %mplo)er e1penses
5mplo.er expenses
Ite
m
/ection 3)* does not stop .ou
deductin% a loss or out%oin% &or ...
3ut t"e exception does not appl. i& ...
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
1.1 provi&in. +oo& or &rin4 to )our
emplo)ees in an
<
in#house &inin.
+acilit).
the +oo& or &rin4 is provi&e& at a part),
reception or other social +unction.
1.2 provi&in. +oo& or &rin4 to
in&ivi&uals /other than )our
emplo)ees0 in an
<
in#house &inin.
+acilit).
/a0 )ou choose /un&er section !2#"00
not to inclu&e in )our assessable
income S!0 +or each meal )ou
provi&e in the
<
in#house &inin.
+acilit) in the income )ear to an
in&ivi&ual /other than )our
emplo)ee09 or
/b0 the +oo& or &rin4 is provi&e& at a
part), reception or other social
+unction.
1.!
provi&in. +oo& or &rin4 in a
<
&inin.
+acilit) to )our emplo)ees 'ho
per+orm most o+ their &uties in
connection 'ith
/a0 the &inin. +acilit)9 or
/b0 a +acilit) /o+ 'hich the &inin.
+acilit) +orms a part0 +or
provi&in. accommo&ation,
<
recreation or travel.
the +oo& or &rin4 is provi&e& at a part),
reception or other social +unction.
1.4 provi&in. +oo& or &rin4 to )our
emplo)ee un&er an
<
in&ustrial
instrument relatin. to overtime.
1.5
provi&in. a +acilit) +or
<
recreation
on propert) )ou occup), i+ the
+acilit) is mainl) operate& +or )our
emplo)ees to use.
the +acilit) is +or
/a0 accommo&ation9 or
/b0 &inin. or &rin4in. /unless it is a
+oo& or &rin4 ven&in. machine0.
1.6 provi&in. +oo& or &rin4 'hich 'oul&
be a
<
+rin.e bene+it apart +rom
sections 54, 58, 58N, 586 an& 58T o+
the 7rin-e 8ene%its Tax Assessment
Act 1986 /&isre.ar&in. section 58(
o+ that Act0.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
1." provi&in. a meal 'hich 'oul& be a
<
+rin.e bene+it apart +rom
sections 58A, 58E, 582, 582A an&
58M o+ the 7rin-e 8ene%its Tax
Assessment Act 1986 /&isre.ar&in.
section 58( o+ that Act0.
1.8 .ivin. )our emplo)ee an allo'ance
that is inclu&e& in his or her
assessable income.
/a0 the emplo)ee is a
<
relative o+
another emplo)ee o+ )ours9 and
/b0 )ou .ive the allo'ance to the
relative, as )our emplo)ee, because
/i0 he or she provi&es, or
+acilitates provi&in.,
<
entertainment to &o 'ith the
other emplo)eeJs
emplo)ment9 and
/ii0 )ou e1pect the relative to &o
so.
Note 1 -n the case o+ a compan), items 1.1, 1.2, 1.!, 1.5 an& 1.8 cover
&irectors o+ the compan) as i+ the) 'ere emplo)ees see section !2#80.
Note 2 -n the case o+ a compan), items 1.1, 1.2, 1.! an& 1.5 cover &irectors,
emplo)ees an& propert) o+ another compan) that is a member o+ the
same 'holl)#o'ne& .roup see section !2#85.
Note ! -tem 1.8 has a special operation +or partnerships see section !2#$0.
!2#!5 6eminar e1penses
/eminar expenses
Ite
m
3ut t"e exception does not appl.
i& ...
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
2.1 provi&in. +oo&, &rin4,
accommo&ation or travel to an
in&ivi&ual /inclu&in. )oursel+0 that
is reasonabl) inci&ental to the
in&ivi&ual atten&in. a
<
seminar that
<
.oes +or at least 4 hours.
/a0 the seminar is a
<
business
meetin.9 or
/b0 the
<
seminarJs main purpose is to
promote or a&vertise a
<
business
/or prospective
<
business0 or its
.oo&s or services9 or
/c0 the
<
seminarJs main purpose is to
provi&e
<
entertainment at, or in
connection 'ith, the seminar.
!2#40 %ntertainment in&ustr) e1penses
5ntertainment industr. expenses
Ite
m
i& ...
!.1
provi&in.
<
entertainment +or
pa)ment in the or&inar) course o+ a
<
business that )ou carr) on.
!.2
provi&in.
<
entertainment in
per+ormin. )our &uties to )our
emplo)er 'ho carries on a
<
business that inclu&es provi&in.
that entertainment +or pa)ment.
!2#45 (romotion an& a&vertisin. e1penses
(romotion and ad$ertisin% expenses
Ite
m
3ut t"e exception does not
appl. i& ...
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
4.1
provi&in.
<
entertainment i+
/a0 )ou provi&e it to an in&ivi&ual
un&er a contract to suppl) him or
her 'ith .oo&s or services in the
or&inar) course o+ )our
<
business9
and
/b0 )ou incur the loss or out.oin. to
promote or a&vertise to the public
)our business or its .oo&s or
services.
4.2 provi&in. or e1hibitin. )our
<
businessJs .oo&s or services i+ )ou
incur the loss or out.oin. to promote or
a&vertise those .oo&s or services to the
public.
4.!
provi&in.
<
entertainment to promote or
a&vertise to the public a
<
business or its
.oo&s or services.
some people have a .reater
opportunit) to .et the bene+its o+
the entertainment than or&inar)
members o+ the public have.
!2#50 *ther e1penses
7t"er expenses
Ite
m
i& ...
5.1 bu)in. +oo& or &rin4 to &o 'ith
overtime that )ou 'or4, i+ )ou
receive an allo'ance un&er an
<
in&ustrial instrument to bu) the
+oo& or &rin4.
5.2
provi&in.
<
entertainment +ree to
members o+ the public 'ho are
sic4, &isable&, poor or other'ise
&isa&vanta.e&.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
6ub&ivision !2#,M7e+initions relevant to the e1ceptions
Table o+ sections
!2#55 -n#house &inin. +acilit) /emplo)er e1penses table items 1.1 an& 1.20
!2#60 7inin. +acilit) /emplo)er e1penses table item 1.!0
!2#65 6eminars /seminar e1penses table item 2.10
!2#55 -n#house &inin. +acilit) /emplo)er e1penses table items 1.1 an&
1.20
An in-house dining facility is a canteen, &inin. room or similar
+acilit) that
/a0 is on propert) )ou occup)9 an&
/b0 is operate& mainl) +or provi&in. +oo& an& &rin4 to )our
emplo)ees9 an&
/c0 is not open to the public.
Note 1 -n the case o+ a compan), this &e+inition also covers &irectors o+ the
compan) as i+ the) 'ere emplo)ees see section !2#80.
Note 2 -n the case o+ a compan), this &e+inition also covers &irectors,
emplo)ees an& propert) o+ another compan) that is a member o+ the
same 'holl)#o'ne& .roup see section !2#85.
!2#60 7inin. +acilit) /emplo)er e1penses table item 1.!0
A dining facility is
/a0 a canteen, &inin. room or similar +acilit)9 or
/b0 a ca+e, restaurant or similar +acilit)9
that is on propert) )ou occup).
Note -n the case o+ a compan), this &e+inition also covers propert) o+
another compan) that is a member o+ the same 'holl)#o'ne& .roup
see section !2#85.
!2#65 6eminars /seminar e1penses table item 2.10
/10 'eminar inclu&es a con+erence, convention, lecture, meetin.
/inclu&in. a meetin. +or the presentation o+ a'ar&s0, speech,
B=uestion an& ans'er sessionC, trainin. session or e&ucational
course.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
/20 -n 'or4in. out 'hether a
<
seminar goes for at least , hours the
+ollo'in. are ta4en not to a++ect the seminarJs continuit), nor to
+orm part o+ it
/a0 an) part o+ the seminar that occurs &urin. a meal9
/b0 an) brea4 &urin. the seminar +or the purpose o+ a meal, rest
or
<
recreation.
/!0 A
<
seminar is a business meeting i+ its main purpose is +or
in&ivi&uals 'ho are /or 'ill be0 associate& 'ith the carr)in. on o+
a particular
<
business to .ive or receive in+ormation, or &iscuss
matters, relatin. to the business.
>o'ever, the
<
seminar is not a business meeting i+ it
/a0 is or.anise& b) /or on behal+ o+0 an emplo)er solel) +or either
or both o+ these purposes
/i0 trainin. the emplo)er an& the emplo)erJs emplo)ees /or
:ust those emplo)ees0 in matters relevant to the
emplo)erJs
<
business /or prospective
<
business09
/ii0 enablin. the emplo)er an& the emplo)erJs emplo)ees
/or :ust those emplo)ees0 to &iscuss .eneral polic)
issues relevant to the internal mana.ement o+ the
emplo)erJs
<
business9 an&
/b0 is con&ucte& on propert) that is occupie& b) a person /other
than the emplo)er0 'hose
<
business inclu&es or.anisin.
seminars or ma4in. propert) available +or con&uctin.
seminars.
Note 1 -n the case o+ a compan), subsection /!0 covers &irectors o+ the
compan) as i+ the) 'ere emplo)ees see section !2#80.
Note 2 -n the case o+ a compan), para.raph /!0/b0 also covers propert) o+
another compan) that is a member o+ the same 'holl)#o'ne& .roup
see section !2#85.
Note ! 6ubsection /!0 has a special operation +or partnerships see
section !2#$0.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
6ub&ivision !2#7M-n#house &inin. +acilities /emplo)er e1penses
table item 1.20
Table o+ sections
!2#"0 S!0 is assessable +or each meal provi&e& to non#emplo)ee in an in#house
&inin. +acilit)
!2#"0 S!0 is assessable +or each meal provi&e& to non#emplo)ee in an
in#house &inin. +acilit)
/10 @our assessable income inclu&es S!0 +or a meal )ou provi&e in an
<
in#house &inin. +acilit) in the income )ear to an in&ivi&ual other
than )our emplo)ee, but onl) i+
/a0 )ou incur a loss or out.oin. in respect o+ provi&in. the meal9
an&
/b0 because o+ item 1.2 o+ the table in section !2#!0, section !2#5
&oes not stop )ou &e&uctin. the loss or out.oin. un&er
section 8#1 /'hich &eals 'ith .eneral &e&uctions09 an&
/c0 the loss or out.oin. is one that )ou can &e&uct un&er
section 8#1 +or the income )ear or some other income )ear.
/20 >o'ever, )ou can choose not to inclu&e in )our assessable income
S!0 +or each meal )ou provi&e in the
<
in#house &inin. +acilit) in
the income )ear to an in&ivi&ual other than )our emplo)ee.
Note -+ )ou &o choose, )ou cannot rel) on item 1.2 o+ the table in
section !2#!0 as a basis +or &e&uctin. a loss or out.oin. )ou incur in
respect o+ provi&in. a meal.
/!0 @ou must choose b) the &a) )ou lo&.e )our
<
income ta1 return +or
the income )ear, or 'ithin a +urther time allo'e& b) the
,ommissioner.
6ub&ivision !2#%MAnti#avoi&ance
Table o+ sections
!2#"5 ,ommissioner ma) treat )ou as havin. incurre& entertainment e1pense
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
!2#"5 ,ommissioner ma) treat )ou as havin. incurre& entertainment
e1pense
-+
/a0 )ou incur a loss or out.oin. un&er an
<
arran.ement9 an&
/b0 someone provi&es
<
entertainment un&er the arran.ement to
)ou or someone else9 an&
/c0 section !2#5 'oul& have stoppe& )ou &e&uctin. the loss or
out.oin. un&er section 8#1 /'hich &eals 'ith .eneral
&e&uctions0 i+ )ou ha& incurre& it in respect o+ provi&in. that
entertainment9
this 7ivision applies to )ou as i+ )ou ha& incurre& the loss or
out.oin. in provi&in. that entertainment, to the e1tent /i+ an)0 that
the ,ommissioner thin4s reasonable.
Note This means that section !2#5 'ill prevent )ou +rom &e&uctin. the loss
or out.oin. un&er section 8#1 unless an e1ception applies.
%1ample A compan) pa)s S1,000 to sponsor a +ootball .ame. In&er the same
arran.ement, the compan) is .iven a vie'in. bo1 at the .ame. To the
e1tent the ,ommissioner thin4s reasonable, he or she can treat the
compan) as havin. incurre& the S1,000 in provi&in. entertainment.
6ub&ivision !2#EM6pecial rules +or companies an& partnerships
Table o+ sections
!2#80 ,ompan) &irectors
!2#85 7irectors, emplo)ees an& propert) o+ 'holl)#o'ne& .roup compan)
!2#$0 (artnerships
!2#80 ,ompan) &irectors
-n the case o+ a compan), these provisions cover &irectors o+ the
compan) as i+ the) 'ere the compan)Js emplo)ees
D item 1.1 /e1ception +or
<
in#house &inin. +acilities0 o+ the
table in section !2#!09
<
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
D item 1.! /e1ception +or
<
&inin. +acilities0 o+ the table in
section !2#!09
D item 1.5 /e1ception +or recreational +acilities0 o+ the table
in section !2#!09
D item 1.8 /e1ception +or provi&in. )our emplo)ee 'ith an
allo'ance0 o+ the table in section !2#!09
D section !2#55 /'hich &e+ines in-house dining facility09
D subsection !2#65/!0 /'hich &e+ines business meeting0.
!2#85 7irectors, emplo)ees an& propert) o+ 'holl)#o'ne& .roup
compan)
%mplo)ees an& &irectors o+ .roup compan)
/10 -n the case o+ a compan), these provisions cover &irectors an&
emplo)ees o+ another compan) that is a member o+ the same
<
'holl)#o'ne& .roup as i+ the) 'ere the compan)Js o'n &irectors
an& emplo)ees
<
<
D item 1.! /e1ception +or
<
&inin. +acilities0 o+ the table in
section !2#!09
D item 1.5 /e1ception +or recreational +acilities0 o+ the table
in section !2#!09
D section !2#55 /'hich &e+ines in-house dining facility09
D subsection !2#60/10 /'hich &e+ines dining facility09
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
D para.raph !2#65/!0/b0.
(ropert) occupie& b) .roup compan)
/20 Those provisions also cover propert) occupie& b) that other
compan) as i+ the compan) occupie& that propert).
!2#$0 (artnerships
-n the case o+ a partnership
D item 1.8 /e1ception +or provi&in. emplo)ee 'ith an
allo'ance0 o+ the table in section !2#!09 an&
D subsection !2#65/!0 /'hich &e+ines business meeting09
appl) to a partner in the same 'a) as the) appl) to an emplo)ee o+
the partnership, but onl) +or the purposes o+ calculatin., in
accor&ance 'ith section $0 o+ the Income Tax Assessment Act
1936, the partnershipJs net income or partnership loss.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
7ivision !4MNon#compulsor) uni+orms
!4#A Application o+ 7ivision !4
!4#? 7e&uction +or )our non#compulsor) uni+orm
!4#, 3e.isterin. the &esi.n o+ a non#compulsor) uni+orm
!4#7 Appeals +rom -n&ustr) 6ecretar)Js &ecision
!4#% The 3e.ister o+ Approve& *ccupational ,lothin.
!4#E Approve& occupational clothin. .ui&elines
!4#5 The -n&ustr) 6ecretar)
This 7ivision is about &e&uctions +or the costs o+
non#compulsor) uni+orms.
Table o+ sections
!4#! Ahat )ou nee& to rea&
!4#! Ahat )ou nee& to rea&
%mplo)ees
/10 -+ )ou incur e1pen&iture +or )our non#compulsor) uni+orm, )ou
nee& to rea& 6ub&ivision !4#? /'hich is about &e&uctions +or )our
non#compulsor) uni+orm0, startin. at section !4#10.
%mplo)ers
/20 -+ )ou have people 'or4in. +or )ou 'ho 'ant to &e&uct
e1pen&iture o+ that 4in&, )ou nee& to rea&
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
D 6ub&ivision !4#, /'hich is about re.isterin. the &esi.n o+
a non#compulsor) uni+orm0, startin. at section !4#259 an&
D 6ub&ivision !4#7 /'hich is about appeals +rom -n&ustr)
6ecretar)Js &ecision0, startin. at section !4#40.
6ub&ivision !4#AMApplication o+ 7ivision !4
Table o+ sections
!4#5 This 7ivision applies to emplo)ees an& others
!4#" This 7ivision applies to emplo)ers an& others
!4#5 This 7ivision applies to emplo)ees an& others
/10 This 7ivision applies not onl) to an in&ivi&ual 'ho is an
emplo)ee. -t also applies to an in&ivi&ual 'ho is not an emplo)ee,
but 'ho receives, or is entitle& to receive,
<
covere& b) subsection /!0.
/20 -+ an in&ivi&ual is not an emplo)ee, but is covere& b)
subsection /10, this 7ivision applies to the in&ivi&ual as i+
/a0 he or she 'ere an emplo)ee9 an&
/b0 the entit), 'ho pa)s /or is liable to pa)0
<
'ithhol&in.
pa)ments covere& b) subsection /!0 that result in the
in&ivi&ual bein. in receipt o+, or entitle& to receive, such
pa)ments, 'ere the in&ivi&ualJs emplo)er9 an&
/c0 an) other in&ivi&ual 'ho receives /or is entitle& to receive0
<
'ithhol&in. pa)ments covere& b) subsection /!0
/i0 that result in that other in&ivi&ual bein. in receipt o+, or
entitle& to receive, such pa)ments9 an&
/ii0 that the entit) pa)s /or is liable to pa)0 to that other
in&ivi&ual9
'ere an emplo)ee o+ the entit).
<
'ithhol&in. pa)ment covere& b) an) o+
the provisions in 6che&ule 1 to the Taxation Administration Act
1953 liste& in the table.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
Ite
m
2 6ection 12#45 (a)ment to o++ice hol&er
! 6ection 12#50 3eturn to 'or4 pa)ment
4 6ub&ivision 12#7 ?ene+it, trainin. an& compensation pa)ments
!4#" This 7ivision applies to emplo)ers an& others
-+ an entit) is not an emplo)er, but pa)s /or is liable to pa)0
<
'ithhol&in. pa)ments covere& b) subsection !4#5/!0, this
7ivision applies to the entit) as i+
/a0 it 'ere an emplo)er9 an&
/b0 an in&ivi&ual to 'hom the entit) pa)s /or is liable to pa)0
such 'ithhol&in. pa)ments 'ere the entit)Js emplo)ee.
6ub&ivision !4#?M7e&uction +or )our non#compulsor) uni+orm
Table o+ sections
!4#10 Ahat )ou can &e&uct
!4#15 Ahat is a non1comp#"sory uni+ormG
!4#20 Ahat are occ#pation speci%ic c"othin- an& protecti!e c"othin-G
!4#10 Ahat )ou can &e&uct
/10 -+ )ou are an emplo)ee, )ou can &e&uct e1pen&iture )ou incur in
respect o+ )our
<
non#compulsor)
<
uni+orm i+
/a0 )ou can &e&uct the e1pen&iture un&er another provision o+
this Act9 an&
/b0 the
<
&esi.n o+ the uni+orm is re.istere& un&er this 7ivision
'hen )ou incur the e1pen&iture.
Note 1 This 7ivision also applies to in&ivi&uals 'ho are not emplo)ees see
6ub&ivision !4#A.
Note 2 %mplo)ers appl) to re.ister &esi.ns o+ uni+orms see
6ub&ivision !4#,.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
/20 @ou cannot &e&uct the e1pen&iture un&er this Act i+ the
<
&esi.n is
not re.istere& at the time )ou incur the e1pen&iture.
/!0 >o'ever, this 7ivision &oes not stop )ou &e&uctin. e1pen&iture
)ou incur in respect o+ )our
<
occupation speci+ic clothin. or
<
protective clothin..
!4#15 Ahat is a non1 comp#"sory uni+ormG
Ahat is a uni&ormG
/10 A uniform is one or more items o+ clothin. /inclu&in. accessories0
'hich, 'hen consi&ere& as a set, &istinctivel) i&enti+) )ou as a
person associate& /&irectl) or in&irectl)0 'ith
/a0 )our emplo)er9 or
/b0 a .roup consistin. o+ )our emplo)er an& one or more o+ )our
emplo)erJs
<
associates.
Ahen is a uni+orm non*compulsor.G
/20 @our uni+orm is non-compulsory unless )our emplo)er
consistentl) en+orces a polic) that re=uires )ou an& the other
emplo)ees /e1cept temporar) or relie+ emplo)ees0 'ho &o the
same t)pe o+ 'or4 as )ou
/a0 to 'ear the uni+orm 'hen 'or4in. +or )our emplo)er9 an&
/b0 not to substitute an item o+ clothin. not inclu&e& in the
uni+orm +or an item o+ clothin. inclu&e& in the uni+orm 'hen
'or4in. +or )our emplo)er9
e1cept in special circumstances.
!4#20 Ahat are occ#pation speci%ic c"othin- an& protecti!e c"othin-G
/10 -ccupation specific clothing is clothin. that &istinctivel)
i&enti+ies )ou as belon.in. to a particular pro+ession, tra&e,
vocation, occupation or callin.. To &etermine this, &isre.ar& an)
+eature o+ the clothin. that &istinctivel) i&enti+ies )ou as a person
associate& /&irectl) or in&irectl)0 'ith
/a0 )our emplo)er9 or
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
/b0 a .roup consistin. o+ )our emplo)er an& one or more o+ )our
emplo)erJs
<
associates.
%1ample *ccupation speci+ic clothin. inclu&es a nurseJs uni+orm, a che+Js
chec4e& pants an& a reli.ious clericJs ceremonial robes.
/20 rotective clothing is clothin. o+ a 4in& that )ou mainl) use to
protect )oursel+, or someone else, +rom ris4 o+
/a0 &eath9 or
/b0
<
&isease /inclu&in. the contraction, a..ravation, acceleration
or recurrence o+ a &isease09 or
/c0 in:ur) /inclu&in. the a..ravation, acceleration or recurrence
o+ an in:ur)09 or
/&0 &ama.e to clothin.9 or
/e0 &ama.e to an arti+icial limb or other arti+icial substitute, or to
a me&ical, sur.ical or other similar ai& or appliance.
%1ample (rotective clothin. inclu&es overalls, aprons, .o..les, har& hats an&
sa+et) boots, 'hen 'orn to protect the 'earer.
Meanin. o+ disease
/!0 .isease inclu&es an) mental or ph)sical ailment, &isor&er, &e+ect
or morbi& con&ition, 'hether o+ su&&en onset or .ra&ual
&evelopment an& 'hether o+ .enetic or other ori.in.
6ub&ivision !4#,M3e.isterin. the &esi.n o+ a non#compulsor)
uni+orm
Table o+ sections
!4#25 Application to re.ister the &esi.n
!4#!0 -n&ustr) 6ecretar)Js &ecision on application
!4#!! Aritten notice o+ &ecision
!4#!5 Ahen uni+orm becomes re.istere&
!4#25 Application to re.ister the &esi.n
/10 The emplo)er o+ an emplo)ee 'ho has, or 'ill have, a
<
non#compulsor)
<
uni+orm can appl) to the
<
-n&ustr) 6ecretar) +or
the
<
&esi.n o+ the uni+orm to be re.istere&.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
Note This 7ivision also applies to entities that are not emplo)ers see
6ub&ivision !4#A.
Meanin. o+ desi%n o+ a uni+orm
/20 The design o+ a
<
uni+orm inclu&es +eatures such as its colourin.,
construction, &urabilit), ornamentation, pattern an& shape.
Eorm o+ application
/!0 The application must be
/a0 in 'ritin.9 an&
/b0 in a +orm approve& in 'ritin. b) the
<
-n&ustr) 6ecretar)9 an&
/c0 accompanie& b) such in+ormation as the -n&ustr) 6ecretar)
re=uires.
!4#!0 -n&ustr) 6ecretar)Js &ecision on application
-n&ustr) 6ecretar) must &eci&e to .rant or re+use application
/10 A+ter consi&erin. the application, the
<
-n&ustr) 6ecretar) must
&eci&e to either .rant or re+use the application.
,riteria +or .rant o+ application
/20 The
<
-n&ustr) 6ecretar) must not &eci&e to .rant an application
unless he or she is satis+ie& that the &esi.n meets the criteria set out
in the
<
approve& occupational clothin. .ui&elines.
Note The approve& occupational clothin. .ui&elines are create& un&er
section !4#55.
Ahen -n&ustr) 6ecretar) ta4en to have re+use& application
/!0 The
<
-n&ustr) 6ecretar) is ta4en to have re+use& an application i+
he or she &oes not ma4e a &ecision b) the later o+ the +ollo'in.
times /the deadline0
/a0 the en& o+ $0 &a)s /the 9/-day period0 a+ter the &a) the
-n&ustr) 6ecretar) receives the application9
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
/b0 i+ the -n&ustr) 6ecretar), b) 'ritten notice .iven to the
applicant 'ithin the $0#&a) perio&, re=uests the applicant to
.ive +urther in+ormation about the applicationMthe en& o+ $0
&a)s a+ter the -n&ustr) 6ecretar) receives the +urther
in+ormation.
!4#!! Aritten notice o+ &ecision
/10 -+ the
<
-n&ustr) 6ecretar) ma4es a &ecision to .rant or re+use an
application un&er subsection !4#!0/10 be+ore the
<
&ea&line, the
-n&ustr) 6ecretar) must .ive the applicant 'ritten notice o+ the
&ecision.
3easons +or re+usal
/20 -+ the notice is a notice o+ a &ecision to re+use the application, it
must also set out the reasons +or the re+usal.
6tatements to accompan) notice o+ &ecision
/!0 The notice o+ the &ecision is to inclu&e the statements set out in
subsections /40 an& /50.
/40 There must be a statement to the e++ect that, sub:ect to the
Administrati!e Appea"s Tri&#na" Act 1975, an application ma) be
ma&e to the
<
AAT, b) /or on behal+ o+0 an) entit) 'hose interests
are a++ecte& b) the &ecision, +or revie' o+ the &ecision.
/50 There must also be a statement to the e++ect that a re=uest ma) be
ma&e un&er section 28 o+ that Act b) /or on behal+ o+0 such an
entit) +or a statement
/a0 settin. out the +in&in.s on material =uestions o+ +act9 an&
/b0 re+errin. to the evi&ence or other material on 'hich those
+in&in.s 'ere base&9 an&
/c0 .ivin. the reasons +or the &ecision9
e1cept 'here subsection 28/40 o+ that Act applies.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
Eailure &oes not a++ect vali&it)
/60 -+ the
<
-n&ustr) 6ecretar) +ails to compl) 'ith subsection /40 or /50,
that +ailure &oes not a++ect the vali&it) o+ his or her &ecision.
!4#!5 Ahen uni+orm becomes re.istere&
-+ the
<
-n&ustr) 6ecretar) &eci&es to .rant the application, the
<
&esi.n o+ the
<
uni+orm becomes re.istere& on
/a0 the &a) the &ecision is ma&e9 or
/b0 i+ the applicant re=uestsMsuch earlier &a) as the -n&ustr)
6ecretar) speci+ies.
Note Ahen the &esi.n becomes re.istere&, an entr) +or the &esi.n is ma&e
on the 3e.ister o+ Approve& *ccupational ,lothin..
6ub&ivision !4#% is about the 3e.ister.
6ub&ivision !4#7MAppeals +rom -n&ustr) 6ecretar)Js &ecision
Table o+ sections
!4#40 3evie' o+ &ecisions b) the A&ministrative Appeals Tribunal
!4#40 3evie' o+ &ecisions b) the A&ministrative Appeals Tribunal
Applications ma) be ma&e to the
<
AAT +or revie' o+ a &ecision
ma&e b) the
<
-n&ustr) 6ecretar) un&er subsection !4#!0/10.
6ub&ivision !4#%MThe 3e.ister o+ Approve& *ccupational
,lothin.
Table o+ sections
!4#45 Neepin. o+ the 3e.ister
!4#50 ,han.es to the 3e.ister
!4#45 Neepin. o+ the 3e.ister
/10 The
<
-n&ustr) 6ecretar) must 4eep the 3e.ister o+ Approve&
*ccupational ,lothin., listin. the &esi.ns that are re=uire& to be
entere& on the 3e.ister because o+ this 7ivision.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
3e.ister to be open +or inspection
/20 The
<
-n&ustr) 6ecretar) must arran.e +or the 3e.ister to be
available +or inspection at an) reasonable time b) an) person on
re=uest.
!4#50 ,han.es to the 3e.ister
3emoval o+ re.istration
/10 The
<
-n&ustr) 6ecretar) must remove an entr) +or a
<
&esi.n +rom
the 3e.ister o+ Approve& *ccupational ,lothin. i+ re=ueste& to &o
so b) the emplo)er 'ho applie& +or the &esi.n to be re.istere&.
,orrectin. errors an& mista4es
/20 The
<
-n&ustr) 6ecretar) ma) correct a clerical error or an obvious
mista4e in an entr) +or a &esi.n in the 3e.ister an&, i+ the -n&ustr)
6ecretar) &oes so, the correction ta4es e++ect on the &a) on 'hich
the &esi.n to 'hich the entr) relates 'as re.istere&.
6ub&ivision !4#EMApprove& occupational clothin. .ui&elines
Table o+ sections
!4#55 Approve& occupational clothin. .ui&elines
!4#55 Approve& occupational clothin. .ui&elines
/10 The Treasurer must, b) le.islative instrument, +ormulate 'ritten
.ui&elines /the approved occupational clothing guidelines0 settin.
out criteria that
<
&esi.ns o+ uni+orms must meet i+ the &esi.ns are
to be re.istere&.
Matters to be ta4en into account in ma4in. .ui&elines
/20 -n ma4in.
<
approve& occupational clothin. .ui&elines, the matters
to 'hich the Treasurer is to have re.ar& inclu&e
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
/a0 ho' &istinctivel) a
<
uni+ormJs
<
&esi.n i&enti+ies the 'earer
as a person associate& /&irectl) or in&irectl)0 'ith
/i0 the applicant +or re.isterin. the uni+ormJs &esi.n9 or
/ii0 a .roup consistin. o+ the applicant an& one or more o+
the applicantJs
<
associates9 an&
/b0 the nature o+ the
<
business or activities the applicant carries
on.
6ub&ivision !4#5MThe -n&ustr) 6ecretar)
Table o+ sections
!4#60 -n&ustr) 6ecretar) to .ive ,ommissioner in+ormation about entries
!4#65 7ele.ation o+ po'ers b) -n&ustr) 6ecretar)
!4#60 -n&ustr) 6ecretar) to .ive ,ommissioner in+ormation about
entries
The
<
-n&ustr) 6ecretar) must .ive the ,ommissioner in+ormation
about entries o+
<
&esi.ns on the 3e.ister o+ Approve& *ccupational
,lothin. i+ the ,ommissioner re=uests him or her to &o so.
!4#65 7ele.ation o+ po'ers b) -n&ustr) 6ecretar)
The
<
-n&ustr) 6ecretar) ma), b) 'ritin., &ele.ate an) or all o+ his
or her +unctions an& po'ers un&er this 7ivision to a person in the
<
-n&ustr) 7epartment
/a0 'ho hol&s or per+orms the &uties o+ a
<
6enior %1ecutive
6ervice o++ice9 or
/b0 'hose classi+ication level appears in 5roup " or 8 o+
6che&ule 1 to the ,lassi+ication 3ules un&er the (#&"ic
.er!ice Act 19999 or
/c0 'ho is actin. in a position usuall) occupie& b) a person 'ith
a classi+ication level o+ the 4in& mentione& in para.raph /b0.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
7ivision !5M7e+erral o+ losses +rom non#commercial
business activities
This 7ivision prevents losses o+ in&ivi&uals +rom
non#commercial business activities bein. o++set a.ainst other
assessable income in the )ear the loss is incurre&. The loss is
&e+erre&.
-t sets out an income re=uirement an& a series o+ tests to
&etermine 'hether a business activit) is treate& as bein.
non#commercial.
The &e+erre& losses ma) be o++set in later )ears a.ainst pro+its
+rom the activit). The) ma) also be o++set a.ainst other income
i+ the income re=uirement an& one o+ the other tests are satis+ie&,
or i+ the ,ommissioner e1ercises a &iscretion.
Table o+ sections
!5#5 *b:ect
!5#10 7e+erral o+ &e&uctions +rom non#commercial business activities
!5#15 Mo&i+ication i+ )ou have e1empt income
!5#20 Mo&i+ication i+ )ou become ban4rupt
!5#25 Application o+ 7ivision to certain partnerships
!5#!0 Assessable income test
!5#!5 (ro+its test
!5#40 3eal propert) test
!5#45 *ther assets test
!5#50 Apportionment
!5#55 ,ommissionerJs &iscretion
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
!5#5 *b:ect
/10 The ob:ect o+ this 7ivision is to improve the inte.rit) o+ the
ta1ation s)stem b)
/a0 preventin. losses +rom non#commercial activities that are
<
carrie& on as
<
businesses b) in&ivi&uals /alone or in
partnership0 bein. o++set a.ainst other assessable income9 an&
/b0 preventin. pre#business capital e1pen&iture an&
post#business capital e1pen&iture b) in&ivi&uals /alone or in
partnership0 in relation to non#commercial activities bein.
&e&uctible un&er section 40#880 /business relate& costs09
unless certain e1ceptions appl).
/20 This 7ivision is not inten&e& to appl) to activities that &o not
constitute
<
carr)in. on a
<
business /+or e1ample, the receipt o+
income +rom passive investments0.
!5#10 7e+erral o+ &e&uctions +rom non#commercial business activities
/10 The rule in subsection /20 applies +or an income )ear to each
<
business activit) )ou carrie& on in that )ear i+ )ou are an
in&ivi&ual, either alone or in partnership /'hether or not some
other entit) is a member o+ the partnership0, unless
/a0 )ou satis+) subsection /2%0 +or that )ear, an& one o+ the tests
set out in an) o+ the +ollo'in. provisions is satis+ie& +or the
business activit) +or that )ear
/i0 section !5#!0 /assessable income test09
/ii0 section !5#!5 /pro+its test09
/iii0 section !5#40 /real propert) test09
/iv0 section !5#45 /other assets test09 or
/b0 the ,ommissioner has e1ercise& the &iscretion set out in
section !5#55 +or the business activit) +or that )ear9 or
/c0 the e1ception in subsection /40 applies +or that )ear.
Note This section covers in&ivi&uals carr)in. on a business activit) as
partners, but not in&ivi&uals merel) in receipt o+ income :ointl).
,ompare the &e+inition o+ partnership in subsection $$5#1/10.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
3ules
/20 -+ the amounts attributable to the
<
business activit) +or that income
)ear that )ou coul& other'ise &e&uct un&er this Act +or that )ear
e1cee& )our assessable income /i+ an)0 +rom the business activit)
+or that )ear, or )our share o+ it, this Act applies to )ou as i+ the
e1cess
/a0 'ere not incurre& in that income )ear9 an&
/b0 'ere an amount attributable to the activit) that )ou can
&e&uct +rom assessable income +rom the activit) +or the ne1t
income )ear in 'hich the activit) is carrie& on.
Note 1 There are mo&i+ications o+ this rule i+ )ou have e1empt income /see
section !5#150 or )ou become ban4rupt /see section !5#200.
Note 2 This rule &oes not appl) i+ )our e1cess is solel) &ue to &e&uctions
un&er 7ivision 41 /see section !5#10 o+ the Income Tax 'Transitiona"
(ro!isions) Act 19970.
%1ample 8enni+er has a salarie& :ob, an& she also carries on a business activit)
consistin. o+ sellin. lin.erie.
8enni+er starts that activit) on 1 8ul) 2002, an& +or the 2002#0!
income )ear, the activit) pro&uces assessable income o+ S8,000 an&
&e&uctions o+ S10,000. The activit) &oes not pass an) o+ the tests an&
the &iscretion is not e1ercise& so the S2,000 e1cess is carrie& over to
the ne1t income )ear in 'hich the activit) is carrie& on.
Eor the 200!#04 income )ear, the activit) pro&uces assessable income
o+ S$,000 an& &e&uctions o+ S10,000 /e1clu&in. the S2,000 e1cess
+rom 2002#0!0. A.ain, no tests passe& an& no e1ercise o+ &iscretion.
S!,000 is carrie& over to the ne1t income )ear /comprisin. the S1,000
e1cess +or the current )ear, plus the previous )earJs S2,000 e1cess0
'hen the activit) is carrie& on.
/2A0 @ou cannot &e&uct an amount un&er section 40#880 /business
relate& costs0 +or e1pen&iture in relation to a
<
business activit) )ou
use& to
<
carr) on i+ )ou are an in&ivi&ual, either alone or in
partnership /'hether or not some other entit) is a member o+ the
partnership0 unless
/a0 )ou satis+ie& subsection /2%0, an& one o+ the tests set out in
an) o+ the +ollo'in. provisions 'as satis+ie& +or the business
activit)
/i0 section !5#!0 /assessable income test09
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
/ii0 section !5#!5 /pro+its test09
/iii0 section !5#40 /real propert) test09
/iv0 section !5#45 /other assets test09 or
/b0 the ,ommissioner has e1ercise& the &iscretion set out in
section !5#55 +or the business activit)9 or
/c0 the e1ception in subsection /40 applie&9
+or the income )ear in 'hich the business activit) cease& to be
carrie& on or an earlier income )ear.
/2?0 -+ )ou are an in&ivi&ual, either alone or in partnership /'hether or
not some other entit) is a member o+ the partnership0, )ou cannot
&e&uct an amount un&er section 40#880 /business relate& costs0 +or
e1pen&iture in relation to a
<
business activit)
/a0 )ou propose to
<
carr) on9 or
/b0 another entit) proposes to carr) on i+ the other entit) is not an
in&ivi&ual, either alone or in partnership9
+or an income )ear be+ore the one in 'hich the business activit)
starts to be carrie& on.
/2,0 This section applies to an amount that )ou coul& have &e&ucte&,
apart +rom para.raph /2?0/a0, as i+ it 'ere an amount attributable
to the
<
business activit) that )ou can &e&uct +rom assessable
income +rom the activit) +or the income )ear in 'hich the business
activit) starts to be
<
carrie& on.
/270 @ou can &e&uct e1pen&iture covere& b) para.raph /2?0/b0 +or the
income )ear in 'hich the
<
business activit) starts to be
<
carrie& on.
-ncome re=uirement
/2%0 @ou satis+) this subsection +or an income )ear i+ the sum o+ the
+ollo'in. is less than S250,000
/a0 )our ta1able income +or that )ear9
/b0 )our
<
reportable +rin.e bene+its total +or that )ear9
/c0 )our
<
reportable superannuation contributions +or that )ear9
/&0 )our
<
total net investment losses +or that )ear.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
Eor the purposes o+ para.raph /a0, 'hen 'or4in. out )our ta1able
income, &isre.ar& an) e1cess mentione& in subsection /20 +or an)
<
business activit) +or that )ear that )ou coul& other'ise &e&uct
un&er this Act +or that )ear.
5roupin. business activities
/!0 -n appl)in. this 7ivision, )ou ma) .roup to.ether
<
business
activities o+ a similar 4in&.
%1ceptions
/40 The rule in subsection /20, /2A0 or /2?0 &oes not appl) to a
<
business activit) +or an income )ear i+
/a0 the activit) is a
<
primar) pro&uction business, or a
<
pro+essional arts business9 an&
/b0 )our assessable income +or that )ear /e1cept an)
<
net capital
.ain0 +rom other sources that &o not relate to that activit) is
less than S40,000.
/50 A professional arts business is a
<
business )ou carr) on as
/a0 the author o+ a literar), &ramatic, musical or artistic 'or49 or
Note The e1pression BauthorC is a technical term +rom cop)ri.ht la'.
-n .eneral, the BauthorC o+ a musical 'or4 is its composer an&
the BauthorC o+ an artistic 'or4 is the artist, sculptor or
photo.rapher 'ho create& it.
/b0 a
<
per+ormin. artist9 or
/c0 a
<
pro&uction associate.
!5#15 Mo&i+ication i+ )ou have e1empt income
/10 The rule in subsection !5#10/20 ma) be mo&i+ie& +or an income
)ear i+ )ou
<
&erive&
<
e1empt income in that )ear.
/20 An) amount to 'hich para.raph !5#10/20/b0 'oul& other'ise
appl) +or an income )ear +or )ou is re&uce& b) )our
<
net e1empt
income +or that )ear /a+ter
<
utilisin. the net e1empt income un&er
section !6#10 or !6#15 /about ta1 losses00. This re&uction is ma&e
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
be+ore )ou appl) the para.raph !5#10/20/b0 amount a.ainst
assessable income +rom the
<
business activit).
!5#20 Mo&i+ication i+ )ou become ban4rupt
/10 The rule in subsection !5#10/20 or /2A0 is mo&i+ie& as set out in
subsection /!0 +or an income )ear i+ in that )ear /the current year0
)ou become ban4rupt or are release& +rom a &ebt b) the operation
o+ an Act relatin. to ban4ruptc).
/20 The rule is also mo&i+ie& as set out in subsection /!0 i+
/a0 )ou became ban4rupt be+ore the current )ear9 an&
/b0 the ban4ruptc) is annulle& in the current )ear un&er
section "4 o+ the 8an,r#ptcy Act 1966 because )our cre&itors
have accepte& a proposal +or a composition or scheme o+
arran.ement9 an&
/c0 un&er the composition or scheme o+ arran.ement, )ou have
been, 'ill be or ma) be release& +rom some or all o+ the &ebts
+rom 'hich )ou 'oul& have been release& i+ )ou ha& instea&
been &ischar.e& +rom the ban4ruptc).
/!0 This Act applies to )ou as i+ an) amount that
/a0 para.raph !5#10/20/b0 ha& applie& to +or an income )ear
be+ore the current )ear +or )ou9 an&
/b0 )ou have not )et &e&ucte&9
'ere not an amount attributable to the
<
business activit) that )ou
can &e&uct +or the current )ear or a later income )ear.
!5#25 Application o+ 7ivision to certain partnerships
Eor the purpose o+ appl)in. the tests in sections !5#!0, !5#40 an&
!5#45 'here )ou carr) on a
<
business activit) in an income )ear as
a partner, i.nore
/a0 an) part o+ the assessable income +rom the business activit)
+or the )ear that is attributable to the interest o+ a partner that
is not an in&ivi&ual in the partnership net income or
partnership loss +or the )ear9 an&
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
/b0 an) part o+ the assessable income +rom the business activit)
+or the )ear that is
<
&erive& +rom the activit) b) another
partner other'ise than as a member o+ the partnership9 an&
/c0 an) part o+ the
<
re&uce& cost bases or other values o+ assets
o+ the partnership use& in carr)in. on the activit) in that )ear
that is attributable to the interest o+ a partner that is not an
in&ivi&ual in those assets9 an&
/&0 an) part o+ the re&uce& cost bases or other values o+ assets
o'ne& or lease& b) another partner that are not partnership
assets an& use& in carr)in. on the activit) in that )ear.
!5#!0 Assessable income test
The rules in section !5#10 &o not appl) to a
<
business activit) +or
an income )ear i+
/a0 the amount o+ assessable income +rom the business activit)
+or the )ear9 or
/b0 )ou starte& to carr) on the business activit), or stoppe&
carr)in. it on, &urin. the )earMa reasonable estimate o+
'hat 'oul& have been the amount o+ that assessable income
i+ )ou ha& carrie& on that activit) throu.hout the )ear9
is at least S20,000.
!5#!5 (ro+its test
/10 The rules in section !5#10 &o not appl) to a
<
business activit)
/e1cept an activit) carrie& on b) one or more in&ivi&uals as
partners, 'hether or not some other entit) is a member o+ the
partnership0 +or an income )ear /the current year0 i+, +or each o+ at
least ! o+ the past 5 income )ears /inclu&in. the current )ear0 the
sum o+ the &e&uctions attributable to that activit) +or that )ear
/apart +rom the operation o+ subsections !5#10/20 an& /2,00 is less
than the assessable income +rom the activit) +or that )ear.
/20 Eor a
<
business activit) )ou carrie& on 'ith one or more others as
partners, the rules in section !5#10 &o not appl) to )ou +or the
current )ear i+, +or each o+ at least ! o+ the past 5 income )ears
/inclu&in. the current )ear0 the sum o+ )our &e&uctions /inclu&in.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
)our share o+ the partnership &e&uctions0 attributable to that
activit) +or that )ear /apart +rom the operation o+
subsections !5#10/20 an& /2,00 is less than )our assessable income
/inclu&in. )our share o+ the partnershipJs assessable income0 +rom
the activit) +or that )ear.
!5#40 3eal propert) test
<
an income )ear i+ the total
<
re&uce& cost bases o+ real propert) or
interests in real propert) use& on a continuin. basis in carr)in. on
the activit) in that )ear is at least S500,000.
/20 @ou ma) use the
<
mar4et value o+ the real propert) or interest i+
that value is more than its
<
re&uce& cost base.
/!0 The
<
re&uce& cost base or
<
mar4et value is 'or4e& out
/a0 as at the en& o+ the income )ear9 or
/b0 i+ )ou stoppe& carr)in. on the
<
business activit) &urin. the
)ear
/i0 as at the time )ou stoppe&9 or
/ii0 i+ )ou &ispose& o+ the asset be+ore that time in the
course o+ stoppin. carr)in. on the activit)Mas at the
time )ou &ispose& o+ it.
/40 >o'ever, these assets are not counte& +or this test
/a0 a
<
&'ellin., an& an) a&:acent lan& use& in association 'ith
the &'ellin., that is use& mainl) +or private purposes9
/b0 +i1tures o'ne& b) )ou as a tenant.
!5#45 *ther assets test
<
an income )ear i+ the total values o+ assets that are counte& +or this
test /see subsections /20 an& /400 an& that are use& on a continuin.
basis in carr)in. on the activit) in that )ear is at least S100,000.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
/20 The assets counte& +or this test, an& their values +or this test, are set
out in this table
Assets counted &or t"is test and t"eir $alues
Ite
m
Asset Value
1 An asset 'hose &ecline
in value )ou can &e&uct
un&er 7ivision 40
The assetJs
<
'ritten &o'n value
2
An item o+
<
tra&in. stoc4
-ts value un&er subsection "0#45/10
! An asset that )ou lease
+rom another entit)
The sum o+ the amounts o+ the +uture lease
pa)ments +or the asset to 'hich )ou are irrevocabl)
committe&, less an appropriate amount to re+lect
an) interest component +or those lease pa)ments
4 Tra&emar4s, patents,
cop)ri.hts an& similar
ri.hts
Their
<
re&uce& cost base
/!0 The value o+ such an asset is 'or4e& out
/a0 as at the en& o+ the income )ear9 or
/b0 i+ )ou stoppe& carr)in. on the
<
business activit) &urin. the
)ear
/i0 as at the time )ou stoppe&9 or
/ii0 i+ )ou &ispose& o+ the asset be+ore that time in the
course o+ stoppin. carr)in. on the activit)Mas at the
time )ou &ispose& o+ it.
/40 >o'ever, these assets are not counte& +or this test
/a0 assets that are real propert) or interests in real propert) that
are ta4en into account +or that )ear un&er section !5#409
/b0
<
cars, motor c)cles an& similar vehicles.
!5#50 Apportionment
-+ an asset that is bein. ta4en into account un&er section !5#40 or
!5#45 is use& &urin. an income )ear partl) in carr)in. on the
relevant
<
business activit) an& partl) +or other purposes, onl) that
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
part o+ its
<
re&uce& cost base,
<
mar4et value or other value that is
attributable to its use in carr)in. on the business activit) in that
)ear is ta4en into account +or that section.
!5#55 ,ommissionerJs &iscretion
/10 The ,ommissioner ma), on application, &eci&e that the rule in
subsection !5#10/20 &oes not appl) to a
<
business activit) +or one
or more income )ears /the excluded years0 i+ the ,ommissioner is
satis+ie& that it 'oul& be unreasonable to appl) that rule because
/a0 the business activit) 'as or 'ill be a++ecte& in the e1clu&e&
)ears b) special circumstances outsi&e the control o+ the
operators o+ the business activit), inclu&in. &rou.ht, +loo&,
bush+ire or some other natural &isaster9 or
Note This para.raph is inten&e& to provi&e +or a case 'here a business
activit) 'oul& have satis+ie& one o+ the tests i+ it 'ere not +or the
special circumstances.
/b0 +or an applicant 'ho carries on the business activit) 'ho
satis+ies subsection !5#10/2%0 /income re=uirement0 +or the
most recent income )ear en&in. be+ore the application is
ma&eMthe business activit) has starte& to be carrie& on an&,
+or the e1clu&e& )ears
/i0 because o+ its nature, it has not satis+ie&, or 'ill not
satis+), one o+ the tests set out in section !5#!0, !5#!5,
!5#40 or !5#459 an&
/ii0 there is an ob:ective e1pectation, base& on evi&ence
+rom in&epen&ent sources /'here available0 that, 'ithin
a perio& that is commerciall) viable +or the in&ustr)
concerne&, the activit) 'ill either meet one o+ those
tests or 'ill pro&uce assessable income +or an income
)ear .reater than the &e&uctions attributable to it +or that
)ear /apart +rom the operation o+ subsections !5#10/20
an& /2,009 or
/c0 +or an applicant 'ho carries on the business activit) 'ho
&oes not satis+) subsection !5#10/2%0 /income re=uirement0
+or the most recent income )ear en&in. be+ore the application
is ma&eMthe business activit) has starte& to be carrie& on
an&, +or the e1clu&e& )ears
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
/i0 because o+ its nature, it has not pro&uce&, or 'ill not
pro&uce, assessable income .reater than the &e&uctions
attributable to it9 an&
/ii0 there is an ob:ective e1pectation, base& on evi&ence
+rom in&epen&ent sources /'here available0 that, 'ithin
a perio& that is commerciall) viable +or the in&ustr)
concerne&, the activit) 'ill pro&uce assessable income
+or an income )ear .reater than the &e&uctions
attributable to it +or that )ear /apart +rom the operation
o+ subsections !5#10/20 an& /2,00.
Note (ara.raphs /b0 an& /c0 are inten&e& to cover a business activit) that
has a lea& time bet'een the commencement o+ the activit) an& the
pro&uction o+ an) assessable income. Eor e1ample, an activit)
involvin. the plantin. o+ har&'oo& trees +or harvest, 'here man)
)ears 'oul& pass be+ore the activit) coul& reasonabl) be e1pecte& to
pro&uce income.
/20 The ,ommissioner ma), on application, &eci&e that the rule in
subsection !5#10/2?0 &oes not appl) to a
<
business activit) +or an
income )ear i+ the ,ommissioner is satis+ie& that it 'oul& be
unreasonable to appl) that rule because special circumstances o+
the 4in& re+erre& to in para.raph /10/a0 o+ this section prevente& the
activit) +rom startin..
Note This subsection is inten&e& to provi&e +or a case 'here a business
activit) 'oul& have be.un to be carrie& on an& satis+ie& one o+ the
tests i+ it 'ere not +or the special circumstances.
/!0 An application +or a &ecision b) the ,ommissioner un&er this
section must be ma&e in the
<
approve& +orm.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
7ivision !6MTa1 losses o+ earlier income )ears
!6#A 7e&uctions +or ta1 losses o+ earlier income )ears
!6#? %++ect o+ )ou becomin. ban4rupt
!6#, %1cess +ran4in. o++sets
-+ )ou have more &e&uctions +or an income )ear than )ou have
income, the &i++erence is a tax loss.
Note @ou ma) be able to utilise the ta1 loss in that or a later income )ear.
6ub&ivision !6#AM7e&uctions +or ta1 losses o+ earlier income
)ears
Table o+ sections
!6#10 >o' to calculate a ta1 loss +or an income )ear
!6#15 >o' to &e&uct ta1 losses o+ entities other than corporate ta1 entities
!6#1" >o' to &e&uct ta1 losses o+ corporate ta1 entities
!6#20 Net e1empt income
!6#25 6pecial rules about ta1 losses
!6#10 >o' to calculate a ta1 loss +or an income )ear
/10 A&& up the amounts )ou can &e&uct +or an income )ear /e1cept
<
ta1 losses +or earlier income )ears0.
/20 6ubtract )our total assessable income.
/!0 -+ )ou
<
&erive&
<
e1empt income, also subtract )our
<
net e1empt
income /'or4e& out un&er section !6#200.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
/40 An) amount remainin. is )our tax loss +or the income )ear, 'hich
is calle& a loss year.
Note 1 6ome &e&uctions are limite& so that the) cannot contribute to a ta1
loss. 6ee section 26#55 /2imit on certain &e&uctions0.
Note 2 The meanin.s o+ tax loss an& loss year are mo&i+ie& b) section !6#55
+or a corporate ta1 entit) that has an amount o+ e1cess +ran4in.
o++sets.
/50 Eor subsection /!0, i+ )ou have
<
e1empt income un&er
section 51#100 /about shippin.0, &isre.ar& $0O o+ so much o+ )our
<
net e1empt income as &irectl) relates to that e1empt income.
!6#15 >o' to &e&uct ta1 losses o+ entities other than corporate ta1
entities
/10 @our
<
ta1 loss +or a
<
loss )ear is &e&ucte& in a later income )ear as
+ollo's i+ )ou are not a
<
corporate ta1 entit) at an) time &urin. the
later income )ear.
Note 1 6ee section !6#1" +or the &e&uction o+ a ta1 loss o+ an entit) that is a
corporate ta1 entit) at an) time &urin. the later income )ear.
Note 2 A ta1 loss can be &e&ucte& onl) to the e1tent that it has not alrea&)
been utilise& see subsection $60#20/10.
-+ )ou have no net e1empt income
/20 -+ )our total assessable income +or the later income )ear e1cee&s
)our total &e&uctions /other than
<
ta1 losses0, )ou &e&uct the ta1
loss +rom that e1cess.
-+ )ou have net e1empt income
/!0 -+ )ou have
<
net e1empt income +or the later income )ear an& )our
total assessable income /i+ an)0 +or the later income )ear e1cee&s
)our total &e&uctions /e1cept
<
ta1 losses0, )ou &e&uct the ta1 loss
/a0 +irst, +rom )our net e1empt income9 an&
/b0 secon&l), +rom the part o+ )our total assessable income that
e1cee&s those &e&uctions.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
/40 >o'ever, i+ )ou have
<
net e1empt income +or the later income )ear
an& those &e&uctions e1cee& )our total assessable income, then
/a0 subtract that e1cess +rom )our net e1empt income9 an&
/b0 &e&uct the ta1 loss +rom an) net e1empt income that remains.
To 'or4 out )our net e1empt income see section !6#20.
5eneral
/50 -+ )ou have 2 or more
<
ta1 losses, )ou &e&uct them in the or&er in
'hich )ou incurre& them.
!6#1" >o' to &e&uct ta1 losses o+ corporate ta1 entities
/10 A
<
ta1 loss o+ an entit) +or a
<
loss )ear is &e&ucte& in a later
income )ear as +ollo's i+ the entit) is a
<
corporate ta1 entit) at an)
time &urin. the later income )ear.
Note 1 A ta1 loss can be &e&ucte& un&er this section onl) to the e1tent that it
has not alrea&) been utilise& see subsection $60#20/10.
Note 2 A corporate ta1 entit) ma) also be able to carr) a loss bac4 to an
earlier income )ear see 7ivision 160.
-+ the entit) has no net e1empt income
/20 -+ the entit)Js total assessable income +or the later income )ear
e1cee&s the entit)Js total &e&uctions /e1cept
<
ta1 losses0, the entit)
is to &e&uct +rom that e1cess so much o+ the ta1 loss as the entit)
chooses. The entit) ma) choose a nil amount.
-+ the entit) has net e1empt income
/!0 -+ the entit) has
<
net e1empt income +or the later income )ear an&
the entit)Js total assessable income /i+ an)0 +or that )ear e1cee&s
the entit)Js total &e&uctions /e1cept
<
ta1 losses0, the entit) is to
/a0 +irst, &e&uct the ta1 loss +rom the net e1empt income9 an&
/b0 secon&l), &e&uct +rom the part o+ the total assessable income
that e1cee&s those &e&uctions so much o+ the un&e&ucte&
amount o+ the ta1 loss /i+ an)0 as the entit) chooses.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
The entit) ma) choose a nil amount un&er para.raph /b0.
Note To 'or4 out the corporate ta1 entit)Js net e1empt income see
section !6#20.
/40 >o'ever, i+ the entit) has
<
net e1empt income +or the later income
)ear an& those &e&uctions e1cee& the entit)Js total assessable
income, the entit) is to
/a0 subtract that e1cess +rom the net e1empt income9 an&
/b0 &e&uct the
<
ta1 loss +rom an) net e1empt income that
remains.
Note This means there is no choice available un&er this subsection.
/4A0 Eor subsection /!0 or /40, i+ the entit) has
<
e1empt income un&er
section 51#100 /about shippin.0 +or the later income )ear, &isre.ar&
$0O o+ so much o+ the entit)Js
<
net e1empt income +or the later
income )ear as &irectl) relates to that e1empt income.
2imit to ho' much the entit) can choose
/50 The choice that the entit) has un&er subsection /20 or /!0 +or the
later income )ear is sub:ect to both o+ the +ollo'in.
/a0 the entit) must choose a nil amount i+, &isre.ar&in. the
<
ta1
loss an& other ta1 losses o+ the entit), the entit) 'oul& have
an amount o+
<
e1cess +ran4in. o++sets +or that )ear9
/b0 i+, &isre.ar&in. the ta1 loss an& other ta1 losses o+ the entit),
the entit) 'oul& not have an amount o+ e1cess +ran4in.
o++sets +or that )earMthe entit) must not choose an amount
that 'oul& result in the entit) havin. an amount o+ e1cess
+ran4in. o++sets +or that )ear.
%1ample Eor the 2002#200! income )ear, ,ompan) A has
D a ta1 loss o+ S150 +rom a previous income )ear9 an&
D assessable income o+ S200 /+ran4e& &istribution o+ S"0,
+ran4in. cre&it o+ S!0 an& S100 o+ income +rom other
sources09 an&
D no &e&uctions9 an&
D no net e1empt income.
The ta1 o++set o+ S!0 +rom the +ran4in. cre&it is not state& in
7ivision 6" to be sub:ect to the re+un&able ta1 o++set rules.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
,ompan) A 'oul& not have an amount o+ e1cess +ran4in. o++sets +or
that )ear i+ the ta1 loss 'ere &isre.ar&e& /see section !6#550. This is
because the ta1 o++set o+ S!0 is less than S60, the amount o+ income
ta1 that ,ompan) A 'oul& have to pa) i+ it &i& not have the ta1 o++set
an& the ta1 loss. (ara.raph /a0 there+ore &oes not appl).
-+ ,ompan) A chooses to &e&uct the +ull amount o+ the ta1 loss, it
'oul& have an amount o+ e1cess +ran4in. o++sets o+ S15
251658240

,ompan) A there+ore cannot ma4e this choice because o+
para.raph /b0.
>o'ever, i+ ,ompan) A chooses to &e&uct S100 o+ the ta1 loss, it
'oul& not have an amount o+ e1cess +ran4in. o++sets
251658240

,ompan) A there+ore can choose to &e&uct S100 o+ the ta1 loss.
/60 The entit) must state its choice un&er subsection /20 or /!0 in its
<
income ta1 return +or the later income )ear.
5eneral
/"0 -+ the entit) has 2 or more
<
ta1 losses, the entit) is to &e&uct them
in the or&er in 'hich the entit) incurre& them.
3ecalculation o+ amounts resultin. in a choice or a chan.e o+ a
choice
/100 6ubsection /110 or /120 applies i+ at least one o+ the +ollo'in.
amounts is recalculate& a+ter an entit) has lo&.e& its
<
income ta1
return +or an income )ear
/a0 the amount o+ a
<
ta1 loss that the entit) can
<
utilise in that
)ear9
/b0 the amount o+ the &i++erence bet'een the entit)Js total
assessable income +or that )ear an& the entit)Js total
&e&uctions /other than
<
ta1 losses0 +or that )ear9
/c0 the amount o+ the entit)Js
<
net e1empt income +or that )ear9
'hether or not the amount is recalculate& in an amen&ment o+ the
entit)Js assessment +or that )ear, an& 'hether or not the amount
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
'as a nil amount be+ore the recalculation /or has become a nil
amount a+ter the recalculation0.
/110 -+
/a0 be+ore the recalculation, a choice un&er subsection /20 or /!0
+or the income )ear 'as not available to the entit)9 but
/b0 as a result o+ the recalculation, the choice has /apart +rom
subsection /600 become available to the entit)9
the entit) can ma4e that choice b) 'ritten notice .iven to the
,ommissioner.
/120 -+
/a0 the entit) ma&e a choice un&er subsection /20 or /!0 +or the
income )ear9 but
/b0 as a result o+ the recalculation, the entit) 'ishes to chan.e
that choice9
the entit) can &o so b) 'ritten notice .iven to the ,ommissioner.
/1!0 6ubsections /100 to /120 have e++ect sub:ect to section 1"0 o+ the
Income Tax Assessment Act 1936 /about amen&ment o+
assessments0.
!6#20 Net e1empt income
/10 -+ )ou are an Australian resi&ent, )our net exempt income is the
amount b) 'hich )our total
<
e1empt income +rom all sources
/a0 the losses an& out.oin.s /e1cept capital losses an& out.oin.s0
)ou incurre& in &erivin. that e1empt income9 an&
/b0 an) ta1es pa)able outsi&e Australia on that e1empt income.
/20 -+ )ou are a +orei.n resi&ent, )our net exempt income is the
amount /i+ an)0 b) 'hich the total o+
/a0 )our
<
e1empt income
<
&erive& +rom sources in Australia9 an&
/b0 )our e1empt income to 'hich section 26A5 /,ertain +ilm
procee&s inclu&e& in assessable income0 o+ the Income Tax
Assessment Act 1936 applies9
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
/c0 the losses an& out.oin.s /e1cept capital losses an& out.oin.s0
)ou incurre& in &erivin. e1empt income covere& b)
para.raph /a0 or /b09 an&
/&0 an) ta1es pa)able outsi&e Australia on income covere& b)
para.raph /b0.
!6#25 6pecial rules about ta1 losses
Ta1 losses o+ in&ivi&uals
Ite
m
:or t"e special rules a!out t"is
situation ...
/ee:
1. @ou .o ban4rupt, or )ou are release&
+rom &ebts un&er a ban4ruptc) la'
)our ri.ht to &e&uct ta1 losses o+ an
earlier income )ear ma) be a++ecte&.
6ub&ivision !6#?
Ta1 losses o+ companies
Ite
m
situation ...
/ee:
1. A compan) has ha& a chan.e o+
o'nership or control &urin. the income
)ear, an& has not satis+ie& the same
business test it 'or4s out its ta1able
income an& its ta1 loss in a special
'a).
6ub&ivision 165#?
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
2. A compan) 'ants to &e&uct a ta1 loss.
-t cannot &o so unless
P the same people o'ne& the
compan) &urin. the loss )ear, the
income )ear an& an) intervenin.
)ear9 an&
P no person controlle& the compan)Js
votin. po'er at an) time &urin. the
income )ear 'ho &i& not also
control it &urin. the 'hole o+ the
loss )ear an& an) intervenin. )ear9
or the compan) has satis+ie& the same
business test.
6ub&ivision 165#A
!. *ne or more o+ these thin.s happen
P income is in:ecte& into a compan)9
P a ta1 bene+it is obtaine& +rom
available losses or &e&uctions9
P a &e&uction is in:ecte& into a
compan)9
P a ta1 bene+it is obtaine& because o+
available income.
The ,ommissioner can &isallo' ta1
losses or current )ear &e&uctions.
7ivision 1"5
4. A compan) can trans+er a surplus
amount o+ its ta1 loss to another
compan) so that the other compan) can
&e&uct the amount in the income )ear
o+ the trans+er. /?oth companies must
be members o+ the same 'holl)#o'ne&
.roup.0
6ub&ivision 1"0#A
.ee a"soC Tax "osses o% poo"ed
de!e"opment %#nds '(47s) &e"o+
5. A li+e insurance compan) 6ub&ivision !20#7
6. A compan) is a &esi.nate&
in+rastructure pro:ect entit).
6ub&ivision 415#?
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
Ta1 losses o+ corporate ta1 entities
Ite
m
situation...
/ee:
1. A corporate ta1 entit) that has an
amount o+ e1cess +ran4in. o++sets +or
an income )ear it 'or4s out its ta1 loss
in a special 'a).
6ub&ivision !6#,
.ee a"so 4i!ision 160 '"oss carry &ac,
tax o%%set)
Ta1 losses o+ entities .enerall)
Ite
m
situation ...
/ee:
!. @ou have &e&uctions in relation to
&erivin. income un&er section 26A5 o+
the Income Tax Assessment Act 1936
+rom the procee&s o+ a +ilm )our ta1
loss ma) have a +ilm component, 'hich
is &e&uctible +rom )our +ilm income
onl).
Eormer
6ub&ivision !"5#5
Ta1 losses o+ poole& &evelopment +un&s /(7Es0
Ite
m
situation ...
/ee:
1. A compan) is a poole& &evelopment
+un& /(7E0 at the en& o+ an income
)ear +or 'hich it has a ta1 loss it can
onl)
/a0 &e&uct the loss 'hile it is a (7E9 or
/b0 carr) bac4 the loss to an income
)ear in 'hich it 'as a (7E.
6ections 1$5#5 an&
1$5#!"
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
2. A compan) becomes a (7E &urin. an
income )ear special rules a++ect ho' it
'or4s out a ta1 loss an& ho' the loss is
utilise&.
6ection 1$5#15
Ta1 losses o+ V,2(s, %6V,2(s, AE*Es an& V,M(s
Ite
m
situation ...
/ee:
1. A limite& partnership that has a ta1 loss
becomes a V,2(, an %6V,2(, an
AE*E or a V,M( it cannot
/a0 &e&uct the loss 'hile it is a V,2(,
an %6V,2(, an AE*E or a V,M(9
or
/b0 carr) bac4 the loss to an income
)ear in 'hich it 'as not a V,2(, an
%6V,2(, an AE*E or a V,M(.
6ub&ivision 1$5#?
Ta1 losses o+ entities that become +orei.n h)bri&s
Item :or t"e special rules a!out t"is
situation...
/ee:
1. An entit) that has a ta1 loss becomes a
+orei.n h)bri& it cannot &e&uct the loss
'hile it is a +orei.n h)bri&.
6ection 8!0#115
Ta1 losses o+ trusts
Ite
m
su!section...
/ee:
1. A trust has ha& a chan.e o+ o'nership
or control or there has been an
abnormal tra&in. in its units
P i+ this happens in the income )ear,
it 'or4s out its net income an& ta1
loss in a special 'a)9 or
P i+ this happens at an) time +rom the
7ivisions 266, 26"
an& 268 in
6che&ule 2E to the
Income Tax
Assessment Act
1936
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
start o+ a loss )ear until the en& o+
the income )ear, it cannot &e&uct a
ta1 loss +rom the loss )ear.
This 'ill not be the case i+ the trust is
an e1cepte& trust. >o'ever, i+ it
became one b) ma4in. a +amil) trust
election, a special ta1 ma) be pa)able
on certain &istributions an& other
amounts.
2. A trust is involve& in a scheme to ta4e
a&vanta.e o+ &e&uctions. The trust ma)
be prevente& +rom ma4in. +ull use o+
them.
7ivision 2"0 in
6che&ule 2E to the
Income Tax
Assessment Act
1936
!. A trust is a &esi.nate& in+rastructure
pro:ect entit).
6ub&ivision 415#?
6ub&ivision !6#?M%++ect o+ )ou becomin. ban4rupt
5ui&e to 6ub&ivision !6#?
!6#!0 Ahat this 6ub&ivision is about
A+ter )ou become ban4rupt, )ou cannot &e&uct a ta1 loss that
)ou incurre& be+orehan&. >o'ever, )ou ma) be able to &e&uct
repa)ments o+ &ebts )ou incurre& in the loss )ear.
Table o+ sections
!6#!5 No &e&uction +or ta1 loss incurre& be+ore ban4ruptc)
!6#40 7e&uction +or amounts pai& +or &ebts incurre& be+ore ban4ruptc)
!6#45 2imit on &e&uctions +or amounts pai&
!6#!5 No &e&uction +or ta1 loss incurre& be+ore ban4ruptc)
/10 -+
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
/a0 )ou became ban4rupt9 or
/b0 )ou 'ere release& +rom a &ebt b) the operation o+ an Act
relatin. to ban4ruptc)9
be+ore the income )ear, )ou cannot &e&uct a
<
ta1 loss that )ou
incurre& be+ore the &a) on 'hich )ou either became ban4rupt or
'ere release&.
/20 -+
/a0 )ou became ban4rupt be+ore the income )ear9 an&
/b0 the ban4ruptc) is later annulle& un&er section "4 o+ the
8an,r#ptcy Act 1966 because )our cre&itors have accepte&
)our proposal +or a composition or scheme o+ arran.ement9
an&
/c0 un&er the composition or scheme o+ arran.ement, )ou have
been, 'ill be or ma) be release& +rom some or all o+ the &ebts
+rom 'hich )ou 'oul& have been release& i+ )ou ha& instea&
been &ischar.e& +rom the ban4ruptc)9
)ou cannot &e&uct a
<
ta1 loss that )ou incurre& be+ore the &a) on
'hich )ou became ban4rupt.
!6#40 7e&uction +or amounts pai& +or &ebts incurre& be+ore ban4ruptc)
Ta1 losses .enerall)
/10 -+
/a0 )ou pa) an amount in the income )ear +or a &ebt that )ou
incurre& in an earlier income )ear9 an&
/b0 )ou have a
<
ta1 loss covere& b) section !6#!5 +or that

earlier
income )ear9
)ou can &e&uct the amount pai&, but onl) to the e1tent that it &oes
not e1cee& so much o+ the &ebt as the ,ommissioner is satis+ie&
'as ta4en into account in calculatin. the amount o+ the ta1 loss.
Eilm losses
/20 -+
/a0 )ou pa) an amount in the income )ear +or a &ebt that )ou
incurre& in an earlier income )ear9 an&
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
/b0 )ou incurre& the &ebt in the course o+ &erivin. or .ainin.
<
assessable +ilm income or
<
e1empt +ilm income9 an&
/c0 )ou also incurre& a
<
+ilm loss covere& b) section !6#!5 in
that earlier income )ear9
)ou can &e&uct the amount pai&, but onl) to the e1tent that it &oes
not e1cee& so much o+ the &ebt as the ,ommissioner is satis+ie&
'as ta4en into account in calculatin. the amount o+ the +ilm loss.
/!0 A film loss is the
<
+ilm component /i+ an)0 o+ a
<
ta1 loss.
/40 @our
<
ta1 loss +or an income )ear has a film component i+ )our
<
+ilm &e&uctions +or the )ear e1cee& the sum o+
/a0 )our
<
assessable +ilm income +or the )ear9 an&
/b0 )our
<
net e1empt +ilm income +or the )ear.
The amount o+ the film component is the e1cess or the ta1 loss,
'hichever is lesser.
/50 >o'ever, i+ )our
<
ta1 loss 'or4e& out un&er a provision liste& in
the table, the film component is 'hat that ta1 loss 'oul& have been
i+
/a0 )our
<
+ilm &e&uctions +or the
<
loss )ear ha& been )our onl)
&e&uctions9 an&
/b0 )our
<
assessable +ilm income +or the loss )ear ha& been )our
onl) assessable income9 an&
/c0 )our
<
net e1empt +ilm income +or the loss )ear ha& been )our
onl)
<
net e1empt income.
>o'ever, the film component cannot e1cee& the actual ta1 loss.
4or9in% out &ilm component o& tax loss
Ite
m
(ro$ision T.pe o& entit.
1 165#"0 ,ompan)Mincome )ear 'hen
o'nership or control chan.e&
2 1"5#!5 ,ompan)M&e&uctions that
have been use& to obtain a ta1
bene+it &isallo'e&
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
! 268#60 in 6che&ule 2E to the
Income Tax Assessment Act
1936
TrustMincome )ear 'hen
o'nership or control chan.e&
!6#45 2imit on &e&uctions +or amounts pai&
Ta1 losses .enerall)
/10 The total o+ )our &e&uctions un&er subsection !6#40/10 +or
amounts pai& in the income )ear +or &ebts incurre& in the
<
loss )ear
cannot e1cee& the amount o+ the
<
ta1 loss re&uce& b) the sum o+
/a0 )our &e&uctions un&er that subsection +or amounts pai& in
earlier income )ears +or &ebts incurre& in the loss )ear9 an&
/b0 an) amounts o+ the ta1 loss
<
utilise& in earlier income )ears9
an&
/c0 an) amounts o+ the ta1 loss that, apart +rom section !6#!5,
'oul& have been &e&uctible +rom )our
<
net e1empt income
+or the income )ear or earlier income )ears.
Eilm losses
/20 The total o+ )our &e&uctions un&er subsection !6#40/20 +or
amounts pai& in the income )ear +or &ebts incurre& in the
<
loss )ear
cannot e1cee& the amount o+ the
<
+ilm loss re&uce& b) the sum o+
/a0 )our &e&uctions un&er that subsection +or amounts pai& in
earlier income )ears +or &ebts incurre& in the loss )ear9 an&
/b0 an) amounts o+ the +ilm loss &e&ucte& in earlier income
)ears9 an&
/c0 an) amounts o+ the +ilm loss that, apart +rom section !6#!5,
'oul& have been &e&uctible +rom )our
<
net e1empt +ilm
income +or the income )ear or earlier income )ears.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
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6ection !0#86
6ub&ivision !6#,M%1cess +ran4in. o++sets
5ui&e to 6ub&ivision !6#,
Amounts o+ ta1 o++sets to 'hich a corporate ta1 entit) is entitle&
un&er 7ivision 20" an& 6ub&ivision 210#> ma) in some
circumstances be converte& into an amount o+ a ta1 loss +or the
entit).
Table o+ sections
*perative provision
!6#55 ,onvertin. e1cess +ran4in. o++sets into ta1 loss
*perative provision
!6#55 ,onvertin. e1cess +ran4in. o++sets into ta1 loss
%1cess +ran4in. o++sets
/10 An entit) that is a
<
corporate ta1 entit) at an) time &urin. an
income )ear has an amount o+ excess fran"ing offsets +or that )ear
i+
/a0 the total amount o+
<
ta1 o++sets to 'hich the entit) is entitle&
+or that )ear un&er 7ivision 20" an& 6ub&ivision 210#>
/e1cept those that are sub:ect to the re+un&able ta1 o++set
rules because o+ section 6"#2509
e1cee&s
/b0 the amount o+ income ta1 that the entit) 'oul& have to pa)
on its ta1able income +or that )ear i+
/i0 it &i& not have those ta1 o++sets9 an&
/ii0 it &i& not have an) ta1 o++sets that are sub:ect to the ta1
o++set carr) +or'ar& rules or the re+un&able ta1 o++set
rules9 an&
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#85
/iii0 it &i& not have an) ta1 o++set un&er section 205#"09
but ha& all its other ta1 o++sets.
The e1cess is the amount o+ excess fran"ing offsets.
Note 7ivision 65 sets out the ta1 o++set carr) +or'ar& rules. 7ivision 6" sets
out 'hich ta1 o++sets are sub:ect to the re+un&able ta1 o++set rules.
%1ample Eor the 2002#200! income )ear, ,ompan) % has
D assessable income o+ S200 /+ran4e& &istribution o+ S140 an&
+ran4in. cre&it o+ S6009 an&
D S100 o+ &e&uctions that are allo'able.
The ta1 o++set o+ S60 +rom the +ran4in. cre&it is not state& in
7ivision 6" to be sub:ect to the re+un&able ta1 o++set rules.
7isre.ar&in. the ta1 o++set o+ S60 +rom the +ran4in. cre&it, the amount
o+ income ta1 that ,ompan) % 'oul& have to pa) is S!0
251658240

This amount is S!0 less than the ta1 o++set o+ S60. ,ompan) %
there+ore has an amount o+ e1cess +ran4in. o++sets o+ S!0 +or that )ear.
>o' to 'or4 out the amount o+ the ta1 loss
/20 Eor the purposes o+ this Act, i+
/a0 an entit) has an amount o+
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e1cess +ran4in. o++sets +or an
income )ear9 an&
/b0 the result o+ appl)in. the +ollo'in. metho& statement is a
positive amount9
then
/c0 the entit) is ta4en to have a
<
ta1 loss +or that )ear e=ual to
that positive amount /instea& o+ an amount o+ ta1 loss 'or4e&
out un&er section !6#10, 165#"0, 1"5#!5 or "01#!009 an&
/&0 that )ear is ta4en to be a
<
loss )ear +or the entit) i+ the entit)
'oul& not other'ise have a ta1 loss +or that )ear.
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<
6ection !0#86
Metho& statement
6tep 1. Aor4 out the amount /i+ an)0 that 'oul& have been the
entit)Js
<
ta1 loss +or that )ear un&er section !6#10,
165#"0, 1"5#!5 or "01#!0 i+ the entit)Js
<
net e1empt
income +or that )ear /i+ an)0 'ere &isre.ar&e&.
Note 6ee section !6#20 +or the calculation o+ net e1empt
income.
6tep 2. 7ivi&e the amount o+
<
e1cess +ran4in. o++sets b) the
<
corporate ta1 rate.
6tep !. A&& the results o+ steps 1 an& 2.
6tep 4. 3e&uce the result o+ step ! b) the entit)Js
<
net e1empt
income +or that )ear /i+ an)0.
The result o+ this step is ta4en to be the entit)Js
<
ta1
loss +or that )ear. >o'ever, i+ the result o+ this step is
nil or a ne.ative amount, the compan) &oes not have
an) ta1 loss +or that )ear.
%1ample Assume that compan) % &i& not &erive an) e1empt income +or the
2002#200! income )ear an& that it 'oul& not other'ise have an) ta1
loss +or that )ear un&er section !6#10, 165#"0, 1"5#!5 or "01#!0.
Appl)in. the metho& statement, the amount o+ e1cess +ran4in. o++sets
o+ S!0 .enerates a ta1 loss o+ S100 +or that )ear, 'hich can be
&e&ucte& in a later income )ear un&er section !6#15 or !6#1".
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
<

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Income Tax Assessment Act 1997

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