Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 243.25

  (1)   A debt arrangement is taken to have terminated if:

  (a)   it is actually terminated; or

  (b)   the debtor's obligation to repay the debt is waived, novated or otherwise varied so as to reduce, transfer or extinguish the debt; or

  (c)   an agreement is entered into to waive, novate or otherwise vary the debtor's obligation to repay the debt so as to reduce, transfer or extinguish the debt; or

  (d)   the creditor ceases to have an entitlement to recover the debt from the debtor (other than as a result of an * arm's length assignment of some or all of the creditor's rights under the debt arrangement); or

  (e)   the debtor ceases to be the owner or the * quasi - owner of some or all of the * debt property because that property is surrendered to the creditor because of the debtor's failure to pay the whole or a part of the debt; or

  (f)   the debtor ceases to be the owner of a beneficial interest in some or all of the debt property because the interest is surrendered to the creditor because of the debtor's failure to pay the whole or a part of the debt; or

  (g)   the debt becomes a bad debt.

  (2)   However, a debt arrangement that is a notional loan arising because of Division   240 (about arrangements treated as a sale and loan) is not taken to have terminated merely because it has been renewed or extended.

Note:   Under Division   240, notional loans are taken to have ended if the relevant arrangement is renewed or extended.

  (3)   Where a debt is terminated under paragraph   (1)(b) or (c) as a result of the debt being reduced, the remaining debt is taken to be a new debt to which section   243 - 15 applies.