Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 65.50

  (1)   If during the * current year:

  (a)   you became bankrupt; or

  (b)   you were released from debts under a law relating to bankruptcy;

you cannot apply a * tax offset that you have carried forward from an earlier income year in working out the tax offset for the current year or a later income year.

  (2)   Subsection   (1) applies even though your bankruptcy is annulled if:

  (a)   the annulment happens under section   74 of the Bankruptcy Act 1966 because your creditors have accepted your proposal for a composition or scheme of arrangement; and

  (b)   under the composition or scheme of arrangement concerned, you were, will be or may be released from debts from which you would have been released if instead you had been discharged from the bankruptcy.