Commonwealth Consolidated Acts Commonwealth Consolidated ActsRights and/or obligations subject to an exception
(1) This Division does not apply to your gains and losses from a * financial arrangement for any income year to the extent that your rights and/or obligations under the arrangement are the subject of an exception under any of the following subsections.
Note: Further exceptions are also provided for in section 230 - 475.
Leasing or property arrangement
(2) A right or obligation arising under:
(a) an * arrangement to which Division 242 (about luxury car leases) applies; or
(b) an arrangement to which Division 240 (about arrangements treated as a sale and loan) applies; or
(c) an arrangement that relates to an asset to which Division 250 (about assets put to tax preferred use) applies; or
(d) an arrangement that, in substance or effect, depends on the use of a specific asset that is:
(i) real property; or
(ii) goods or a personal chattel (other than money or a * money equivalent); or
(iii) intellectual property;
and gives a right to control the use of the asset; or
(e) an arrangement that is a licence to use:
(i) real property; or
(ii) goods or a personal chattel (other than money or a money equivalent); or
(iii) intellectual property;
is the subject of an exception.
Interest in partnership or trust
(3) A right carried by an interest in a partnership or a trust, or an obligation that corresponds to such a right, is the subject of an exception if:
(a) there is only one class of interest in the partnership or trust; or
(b) the interest is an * equity interest in the partnership or trust; or
(c) for a right or obligation relating to a trust--the trust is managed by a funds manager or custodian, or a responsible entity (as defined in the Corporations Act 2001 ) of a registered scheme (as so defined).
(4) Subsection (3) does not apply if, assuming that the * financial arrangement were a * Division 230 financial arrangement, a * fair value election, or an * election to rely on financial reports, would apply to it.
Certain insurance policies
(5) A right or obligation under a * life insurance policy is the subject of an exception unless:
(a) you are not a * life insurance company that is the insurer under the policy; and
(b) the policy is an annuity that is a * qualifying security.
(6) A right or obligation under a * general insurance policy is the subject of an exception unless:
(a) you are not a * general insurance company; and
(b) the policy is a * derivative financial arrangement.
Certain workers' compensation arrangements
(7) A right or obligation in relation to a liability for workers' compensation claims to which Subdivision 321 - C applies is the subject of an exception.
Certain guarantees and indemnities
(8) A right or obligation under a guarantee or indemnity is the subject of an exception unless:
(a) assuming that the * financial arrangement were a * Division 230 financial arrangement, it would be the subject of a * fair value election or an * election to rely on financial reports; or
(b) the financial arrangement is a * derivative financial arrangement; or
(c) the guarantee or indemnity is given in relation to a financial arrangement.
Personal arrangements and personal injury
(9) The following rights and obligations are the subject of an exception:
(a) a right to receive, or an obligation to provide, consideration for providing personal services;
(b) a right, or obligation, arising from the administration of a deceased person's estate;
(c) a right to receive, or an obligation to provide, a gift under a deed;
(d) a right to receive, or an obligation to provide, a * financial benefit by way of maintenance:
(i) to an individual who is or has been the * spouse of the person liable to provide the benefit; or
(ii) to or for the benefit of an individual who is or has been a child of the person liable to provide the benefit; or
(iii) to or for the benefit of an individual who is or has been a child of an individual who is or has been a spouse of the person liable to provide the benefit;
(e) a right to receive, or an obligation to provide, a financial benefit in relation to personal injury to an individual;
(f) a right to receive, or an obligation to provide, a financial benefit in relation to an injury to an individual's reputation.
(10) Without limiting paragraph (9)(e), that paragraph applies:
(a) even if the person to whom the * financial benefit is to be provided is not the individual who was injured; and
(b) even if the personal injury to the individual takes the form of:
(i) a wrong to the individual; or
(ii) illness of the individual.
Note: The person referred to in paragraph (a) may, for example, be a relative of the individual who was injured.
Superannuation and pension benefits
(11) A right to receive, or an obligation to provide, * financial benefits is the subject of an exception if the right or obligation arises from a person's membership of a superannuation or pension scheme, including:
(a) a right of a dependant of a member to receive financial benefits or an obligation to provide financial benefits to a dependant of a member; and
(b) a right or obligation arising from an interest in:
(i) a * complying superannuation entity; or
(ii) a * non - complying superannuation fund or * non - complying approved deposit fund; or
(iii) an * RSA.
Interest in controlled foreign companies
(12) A right or obligation that arises under a * direct participation interest of an * attributable taxpayer in a * controlled foreign company is the subject of an exception.
Proceeds from certain business sales
(13) A right to receive, or an obligation to provide, * financial benefits arising from the sale of:
(a) a business; or
(b) shares in a company that operates a business; or
(c) interests in a trust that operates a business;
is the subject of an exception if the amounts, or the values, of those benefits are only * contingent on aspects of the economic performance of the business after the sale.
Farm management deposits
(15) A right to receive, or an obligation to provide, * financial benefits is the subject of an exception if:
(a) the right or obligation is the right or obligation of an * owner of a * farm management deposit; and
(b) the right or obligation relates to the deposit.
Rights and obligations to which section 121EK of the Income Tax Assessment Act 1936 applies
(16) A right or obligation that arises because of a payment of an amount to which section 121EK of the Income Tax Assessment Act 1936 applies is the subject of an exception.
Forestry managed investment scheme interests
(17) A right or obligation under a * forestry interest in a * forestry managed investment scheme in relation to which you can claim deductions under Division 394 is the subject of an exception.
Exploration benefits
(17A) A right or obligation that arises because of the provision of an * exploration benefit under a * farm - in farm - out arrangement is the subject of an exception.
Regulations may provide for exceptions
(18) A right or obligation of a kind specified in the regulations for the purposes of this subsection is the subject of an exception.